A little historical perspective

Posted: July 14, 2008 in Remember

From Wikipedia

While not part of the Savings and Loan Crisis, many other banks failed. Between 1980 and 1994 more than 1,600 banks insured by the Federal Deposit Insurance Corporation (FDIC) were closed or received FDIC financial assistance.

During the Savings and Loan Crisis, from 1986 to 1995, the number of US federally insured savings and loans in the United States declined from 3,234 to 1,645. This was primarily, but not exclusively, due to unsound real estate lending.

The market share of S&Ls for single family mortgage loans went from 53% in 1975 to 30% in 1990. U.S. General Accounting Office estimated cost of the crisis to around USD $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government from 1986 to 1996. That figure does not include thrift insurance funds used before 1986 or after 1996. It also does not include state run thrift insurance funds or state bailouts.

The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed dropped from 1.8 to 1 million, the lowest rate since World War II. (source)

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Comments
  1. DarkStar says:

    Yes, I do remember. One of the biggest S&L failures was based in Maryland. The CEO, went to jail. Dude was HUGE and his wife was HUGE in size. I thought at the time it was because they were eating well.

    She got jail time but was let out early for health concerns. He was moved to a jail that could hold his frame and then let out early because of health concerns as well.

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