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Savings and loan crisis

Index Savings and loan crisis

The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions from 1989 to 1995. [1]

128 relations: Adjustable-rate mortgage, Adverse selection, Alan Cranston, Arizona, Asset–liability mismatch, Baby boom, Bank holiday, Bankruptcy, Boston University, Building society, C-SPAN, California, Certificate of deposit, Charles Keating, Charter, Cincinnati, Conflict of interest, Conspiracy (criminal), Control fraud, Cottage Savings Ass'n v. Commissioner, Countdown to Extinction, David Ellefson, David R. Henderson, Democratic Party (United States), Dennis DeConcini, Depository Institutions Deregulation and Monetary Control Act, Deregulation, Dick Celeste, Discount window, Disintermediation, Dollars & Sense, Donald Riegle, Dwight D. Eisenhower, Early 1980s recession in the United States, Early 1990s recession, East Coast of the United States, Economic Recovery Tax Act of 1981, Fannie Mae, Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Federal Home Loan Banks, Federal Housing Finance Board, Federal Reserve System, Federal Savings and Loan Insurance Corporation, Financial crisis, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, Fixed-rate mortgage, Forbearance, Fractional-reserve banking, Franklin D. Roosevelt, ..., Fraud, Freddie Mac, Garn–St. Germain Depository Institutions Act, George H. W. Bush, Government Accountability Office, Government National Mortgage Association, Great Depression, Great Society, High-yield debt, Home State Savings Bank, Inflation, Interstate Highway System, Jim Wright, Jimmy Carter, John Glenn, John McCain, Keating Five, L. William Seidman, Liar's Poker, Liberty Fund, Lincoln Savings and Loan Association, List of corporate collapses and scandals, List of largest U.S. bank failures, Los Angeles Times, Louisiana, Lyndon B. Johnson, Mail and wire fraud, Maryland, Megadeth, Michael Lewis, Michael Milken, Michigan, Midwest Federal Savings & Loan, Midwestern United States, Minneapolis, Minnesota, Monetary inflation, Moral hazard, Mortgage loan, Negotiable order of withdrawal account, Neil Bush, New Deal, Office of Thrift Supervision, Ohio, Oklahoma, Old Court Savings and Loans, Panic of 1893, Paul Volcker, Race to the bottom, Racket (crime), Regulation Q, Republican Party (United States), Resolution Trust Corporation, Salary, Savings and loan association, Second Industrial Revolution, St. Paul Pioneer Press, Stagflation, Subprime mortgage crisis, Supreme Court of the United States, Tax, Tax Reform Act of 1986, Texas, The Arizona Republic, The Washington Post, United States Congress, United States Department of the Treasury, United States House Committee on Ethics, United States Senate Select Committee on Ethics, United States v. Winstar Corp., Vice President of the United States, Vietnam War, Wall Street Crash of 1929, William K. Black, World War II, Zvi Bodie, 1980s oil glut, 97th United States Congress. Expand index (78 more) »

Adjustable-rate mortgage

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.

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Adverse selection

Adverse selection is a term commonly used in economics, insurance, and risk management that describes a situation where market participation is affected by asymmetric information.

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Alan Cranston

Alan MacGregor Cranston (June 19, 1914 – December 31, 2000) was an American politician, journalist and world federalist who served as a United States Senator from California, from 1969 to 1993.

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Arizona

Arizona (Hoozdo Hahoodzo; Alĭ ṣonak) is a U.S. state in the southwestern region of the United States.

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Asset–liability mismatch

In finance, an asset–liability mismatch occurs when the financial terms of an institution's assets and liabilities do not correspond.

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Baby boom

A baby boom is a period marked by a significant increase of birth rate.

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Bank holiday

A bank holiday is a public holiday in the United Kingdom, some Commonwealth countries, Hong Kong and the Republic of Ireland.

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Bankruptcy

Bankruptcy is a legal status of a person or other entity that cannot repay debts to creditors.

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Boston University

Boston University (commonly referred to as BU) is a private, non-profit, research university in Boston, Massachusetts.

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Building society

A building society is a financial institution owned by its members as a mutual organization.

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C-SPAN

C-SPAN, an acronym for Cable-Satellite Public Affairs Network, is an American cable and satellite television network that was created in 1979 by the cable television industry as a public service.

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California

California is a state in the Pacific Region of the United States.

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Certificate of deposit

A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions.

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Charles Keating

Charles Humphrey Keating Jr. (December 4, 1923 – March 31, 2014) was an American athlete, lawyer, real estate developer, banker, financier, and activist best known for his role in the savings and loan scandal of the late 1980s.

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Charter

A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified.

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Cincinnati

No description.

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Conflict of interest

A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another.

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Conspiracy (criminal)

In criminal law, a conspiracy is an agreement between two or more persons to commit a crime at some time in the future.

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Control fraud

Control fraud occurs when a trusted person in a high position of responsibility in a company, corporation, or state subverts the organization and engages in extensive fraud for personal gain.

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Cottage Savings Ass'n v. Commissioner

Cottage Savings Association v. Commissioner,, was an income tax case before the Supreme Court of the United States.

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Countdown to Extinction

Countdown to Extinction is the fifth studio album by American thrash metal band Megadeth, released on July 14, 1992, through Capitol Records.

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David Ellefson

David Warren Ellefson (born November 12, 1964) is an American bassist, co-founder and second-longest serving member of the American heavy metal band Megadeth from 1983 to 2002 and again from 2010.

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David R. Henderson

David R. Henderson (born November 21, 1950) is a Canadian-born American economist and author who moved to the United States in 1972 and became a U.S. citizen in 1986, serving on President Ronald Reagan’s Council of Economic Advisers from 1982 to 1984.

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Democratic Party (United States)

The Democratic Party is one of the two major contemporary political parties in the United States, along with the Republican Party (nicknamed the GOP for Grand Old Party).

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Dennis DeConcini

Dennis Webster DeConcini (born May 8, 1937) is an American lawyer, philanthropist, politician and former Democratic U.S. Senator from Arizona.

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Depository Institutions Deregulation and Monetary Control Act

The Depository Institutions Deregulation and Monetary Control Act of 1980 (often abbreviated DIDMCA or MCA) is a United States federal financial statute passed in 1980 and signed by President Jimmy Carter on March 31.

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Deregulation

Deregulation is the process of removing or reducing state regulations, typically in the economic sphere.

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Dick Celeste

Richard Frank "Dick" Celeste (born November 11, 1937) is an American former diplomat, university administrator and politician from Ohio, he is a member of the Democratic Party and served as the 64th Governor of Ohio from 1983 to 1991.

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Discount window

The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.

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Disintermediation

Disintermediation is the removal of intermediaries in economics from a supply chain, or cutting out the middlemen in connection with a transaction or a series of transactions.

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Dollars & Sense

Dollars & Sense is a magazine focusing on economics from a progressive perspective, published by Dollars & Sense, Inc, which also publishes textbooks in the same genre.

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Donald Riegle

Donald Wayne Riegle Jr. (born February 4, 1938) is an American politician, author and businessman from Michigan, who served for five terms as a Representative and for three terms as a Senator in the U.S. Congress.

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Dwight D. Eisenhower

Dwight David "Ike" Eisenhower (October 14, 1890 – March 28, 1969) was an American army general and statesman who served as the 34th President of the United States from 1953 to 1961.

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Early 1980s recession in the United States

The United States entered recession in January 1980 and returned to growth six months later in July 1980.

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Early 1990s recession

The early 1990s recession describes the period of economic downturn affecting much of the Western world in the early 1990s.

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East Coast of the United States

The East Coast of the United States is the coastline along which the Eastern United States meets the North Atlantic Ocean.

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Economic Recovery Tax Act of 1981

The Economic Recovery Tax Act of 1981, also known as the ERTA or "Kemp–Roth Tax Cut", was a federal law enacted in the United States in 1981.

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Fannie Mae

The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company.

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Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.

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Federal Home Loan Bank Board

The Federal Home Loan Bank Board (FHLBB) was a board created in 1932 that oversaw the Federal Home Loan Banks (FHLB or FHLBanks) also created by the act.

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Federal Home Loan Banks

The Federal Home Loan Banks (FHLBanks, or FHLBank System) are 11 U.S. government-sponsored banks that provide reliable liquidity to member financial institutions (not individuals) to support housing finance and community investment.

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Federal Housing Finance Board

The Federal Housing Finance Board (FHFB) was an independent agency of the United States government established in 1989 in the aftermath of the savings and loan crisis to take over oversight of the Federal Home Loan Banks (FHLBs or FHLBanks) from the Federal Home Loan Bank Board (FHLBB), and was superseded by the Federal Housing Finance Agency (FHFA) in 2008.

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Federal Reserve System

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America.

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Federal Savings and Loan Insurance Corporation

The Federal Savings and Loan Insurance Corporation (FSLIC) was an institution that administered deposit insurance for savings and loan institutions in the United States.

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Financial crisis

A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.

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Financial Institutions Reform, Recovery, and Enforcement Act of 1989

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), is a United States federal law enacted in the wake of the savings and loan crisis of the 1980s.

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Fixed-rate mortgage

A fixed-rate mortgage (FRM), often referred to as a "vanilla wafer" mortgage loan, is a fully amortizing mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float".

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Forbearance

In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower to delay a foreclosure.

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Fractional-reserve banking

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities.

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Franklin D. Roosevelt

Franklin Delano Roosevelt Sr. (January 30, 1882 – April 12, 1945), often referred to by his initials FDR, was an American statesman and political leader who served as the 32nd President of the United States from 1933 until his death in 1945.

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Fraud

In law, fraud is deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

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Freddie Mac

The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.

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Garn–St. Germain Depository Institutions Act

The Garn–St Germain Depository Institutions Act of 1982 (enacted October 15, 1982) is an Act of Congress that deregulated savings and loan associations and allowed banks to provide adjustable-rate mortgage loans.

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George H. W. Bush

George Herbert Walker Bush (born June 12, 1924) is an American politician who served as the 41st President of the United States from 1989 to 1993.

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Government Accountability Office

The Government Accountability Office (GAO) is a legislative branch government agency that provides auditing, evaluation, and investigative services for the United States Congress.

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Government National Mortgage Association

The Government National Mortgage Association (GNMA), or Ginnie Mae, was established in the United States in 1968 to promote home ownership.

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Great Depression

The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

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Great Society

The Great Society was a set of domestic programs in the United States launched by Democratic President Lyndon B. Johnson in 1964–65.

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High-yield debt

In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade.

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Home State Savings Bank

Home State Savings Bank was a Cincinnati, Ohio based savings and loan.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Interstate Highway System

The Dwight D. Eisenhower National System of Interstate and Defense Highways, commonly known as the Interstate Highway System, is a network of controlled-access highways that forms part of the National Highway System in the United States.

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Jim Wright

James Claude Wright Jr. (December 22, 1922 – May 6, 2015), usually known as Jim Wright, was an American politician who served as the 48th Speaker of the United States House of Representatives from 1987 to 1989.

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Jimmy Carter

James Earl Carter Jr. (born October 1, 1924) is an American politician who served as the 39th President of the United States from 1977 to 1981.

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John Glenn

Colonel John Herschel Glenn Jr. (July 18, 1921 – December 8, 2016) was a United States Marine Corps aviator, engineer, astronaut, and United States Senator from Ohio.

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John McCain

John Sidney McCain III (born August 29, 1936) is an American politician serving as the senior United States Senator from Arizona, a seat he was first elected to in 1986.

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Keating Five

Image:AlanCranston.jpg|Alan Cranston (D-CA) Image:Dennis DeConcini.jpg|Dennis DeConcini (D-AZ) File:John Glenn Low Res.jpg|John Glenn (D-OH) File:John McCain Official Other Version.jpg|John McCain (R-AZ) Image:Riegle2.jpg|Donald W. Riegle (D-MI) The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s.

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L. William Seidman

Lewis William Seidman (April 29, 1921 – May 13, 2009) was an American economist, financial commentator, and former head of the U.S. Federal Deposit Insurance Corporation, best known for his role in helping work to correct the Savings and Loan Crisis in the American financial sector from 1988-1991 as head of the related entity, the Resolution Trust Corporation.

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Liar's Poker

Liar's Poker is a non-fiction, semi-autobiographical book by Michael Lewis describing the author's experiences as a bond salesman on Wall Street during the late 1980s.

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Liberty Fund

Liberty Fund, Inc. is a nonprofit foundation headquartered in Indianapolis, Indiana which promulgates the libertarian views of its founder, Pierre F. Goodrich through publishing, conferences, and educational resources.

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Lincoln Savings and Loan Association

The Lincoln Savings and Loan Association of Irvine, California, was the financial institution at the heart of the Keating Five scandal during the 1980s savings and loan crisis.

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List of corporate collapses and scandals

A corporate collapse typically involves the insolvency or bankruptcy of a major business enterprise.

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List of largest U.S. bank failures

This is a list of the largest U.S. bank failures with respect to total assets under management at the time of the bank failure (banks with $1.0 billion or more in assets are listed here).

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Los Angeles Times

The Los Angeles Times is a daily newspaper which has been published in Los Angeles, California since 1881.

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Louisiana

Louisiana is a state in the southeastern region of the United States.

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Lyndon B. Johnson

Lyndon Baines Johnson (August 27, 1908January 22, 1973), often referred to by his initials LBJ, was an American politician who served as the 36th President of the United States from 1963 to 1969, assuming the office after having served as the 37th Vice President of the United States from 1961 to 1963.

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Mail and wire fraud

In the United States, mail and wire fraud is any fraudulent scheme to intentionally deprive another of property or honest services via mail or wire communication.

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Maryland

Maryland is a state in the Mid-Atlantic region of the United States, bordering Virginia, West Virginia, and Washington, D.C. to its south and west; Pennsylvania to its north; and Delaware to its east.

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Megadeth

Megadeth is an American heavy metal band from Los Angeles, California.

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Michael Lewis

Michael Monroe Lewis (born October 15, 1960) is an American non-fiction author and financial journalist.

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Michael Milken

Michael Robert Milken (born July 4, 1946) is an American former financier and philanthropist.

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Michigan

Michigan is a state in the Great Lakes and Midwestern regions of the United States.

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Midwest Federal Savings & Loan

Midwest Federal Savings and Loan was an American bank headquartered in Minneapolis, Minnesota.

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Midwestern United States

The Midwestern United States, also referred to as the American Midwest, Middle West, or simply the Midwest, is one of four census regions of the United States Census Bureau (also known as "Region 2").

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Minneapolis

Minneapolis is the county seat of Hennepin County, and the larger of the Twin Cities, the 16th-largest metropolitan area in the United States.

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Minnesota

Minnesota is a state in the Upper Midwest and northern regions of the United States.

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Monetary inflation

Monetary inflation is a sustained increase in the money supply of a country (or currency area).

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Moral hazard

In economics, moral hazard occurs when someone increases their exposure to risk when insured.

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Mortgage loan

A mortgage loan, or simply mortgage, is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged.

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Negotiable order of withdrawal account

In the United States, a negotiable order of withdrawal account (NOW account) is a deposit account that pays interest, on which an unlimited number of checks may be written.

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Neil Bush

Neil Mallon Bush (born January 22, 1955) is an American businessman and investor.

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New Deal

The New Deal was a series of programs, public work projects, financial reforms and regulations enacted in the United States 1933-36, in response to the Great Depression.

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Office of Thrift Supervision

The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations.

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Ohio

Ohio is a Midwestern state in the Great Lakes region of the United States.

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Oklahoma

Oklahoma (Uukuhuúwa, Gahnawiyoˀgeh) is a state in the South Central region of the United States.

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Old Court Savings and Loans

Old Court Savings and Loan (Old Court Thrift Savings) was a savings and loan association headquartered in Pikesville, Maryland, United States, that failed due to embezzlement by its president Jeffrey Levitt, which led to the failure of the state deposit insurance corporation.

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Panic of 1893

The Panic of 1893 was a serious economic depression in the United States that began in 1893 and ended in 1897.

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Paul Volcker

Paul Adolph Volcker Jr. (born September 5, 1927) is an American economist.

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Race to the bottom

The race to the bottom is a socio-economic phrase which is used to describe government deregulation of the business environment, or reduction in tax rates, in order to attract or retain economic activity in their jurisdictions.

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Racket (crime)

A racket is a planned or organized criminal act, usually in which the criminal act is a form of business or a way to earn illegal or extorted money regularly or briefly but repeatedly.

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Regulation Q

Regulation Q (12 CFR) is a Federal Reserve regulation which sets out capital requirements for banks in the United States.

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Republican Party (United States)

The Republican Party, also referred to as the GOP (abbreviation for Grand Old Party), is one of the two major political parties in the United States, the other being its historic rival, the Democratic Party.

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Resolution Trust Corporation

The Resolution Trust Corporation (RTC) was a U.S. government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations (S&Ls) declared insolvent by the Office of Thrift Supervision (OTS) as a consequence of the savings and loan crisis of the 1980s.

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Salary

A salary is a form of payment from an employer to an employee, which may be specified in an employment contract.

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Savings and loan association

A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings, deposits, and making mortgage and other loans.

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Second Industrial Revolution

The Second Industrial Revolution, also known as the Technological Revolution, was a phase of rapid industrialization in the final third of the 19th century and the beginning of the 20th.

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St. Paul Pioneer Press

The St.

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Stagflation

In economics, stagflation, a portmanteau of stagnation and inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high.

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Subprime mortgage crisis

The United States subprime mortgage crisis was a nationwide banking emergency, occurring between 2007 and 2010, that contributed to the U.S. recession of December 2007 – June 2009.

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Supreme Court of the United States

The Supreme Court of the United States (sometimes colloquially referred to by the acronym SCOTUS) is the highest federal court of the United States.

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Tax

A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by a governmental organization in order to fund various public expenditures.

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Tax Reform Act of 1986

The U.S. Congress passed the Tax Reform Act of 1986 (TRA) to simplify the income tax code, broaden the tax base and eliminate many tax shelters.

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Texas

Texas (Texas or Tejas) is the second largest state in the United States by both area and population.

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The Arizona Republic

The Arizona Republic is an American daily newspaper published in Phoenix.

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The Washington Post

The Washington Post is a major American daily newspaper founded on December 6, 1877.

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United States Congress

The United States Congress is the bicameral legislature of the Federal government of the United States.

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United States Department of the Treasury

The Department of the Treasury (USDT) is an executive department and the treasury of the United States federal government.

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United States House Committee on Ethics

The Committee on Ethics, often known simply as the Ethics Committee, is one of the committees of the United States House of Representatives.

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United States Senate Select Committee on Ethics

The U.S. Senate Select Committee on Ethics is a select committee of the United States Senate charged with dealing with matters related to senatorial ethics.

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United States v. Winstar Corp.

United States v. Winstar Corp., 518 U.S. 839 (1996),.

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Vice President of the United States

The Vice President of the United States (informally referred to as VPOTUS, or Veep) is a constitutional officer in the legislative branch of the federal government of the United States as the President of the Senate under Article I, Section 3, Clause 4, of the United States Constitution, as well as the second highest executive branch officer, after the President of the United States.

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Vietnam War

The Vietnam War (Chiến tranh Việt Nam), also known as the Second Indochina War, and in Vietnam as the Resistance War Against America (Kháng chiến chống Mỹ) or simply the American War, was a conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975.

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Wall Street Crash of 1929

The Wall Street Crash of 1929, also known as Black Tuesday (October 29), the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its after effects.

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William K. Black

William Kurt Black (born September 6, 1951) is an American lawyer, academic, author, and a former bank regulator.

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World War II

World War II (often abbreviated to WWII or WW2), also known as the Second World War, was a global war that lasted from 1939 to 1945, although conflicts reflecting the ideological clash between what would become the Allied and Axis blocs began earlier.

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Zvi Bodie

Zvi Bodie (born April 27, 1943) is the Norman and Adele Barron Professor of Management at Boston University.

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1980s oil glut

The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s energy crisis.

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97th United States Congress

The Ninety-seventh United States Congress was a meeting of the legislative branch of the United States federal government, composed of the United States Senate and the United States House of Representatives.

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Redirects here:

1980s Savings and Loan crisis, S & L crisis, S and L Crisis, S&L Crisis, S&L crisis, Saving and Loans Scandal, Savings & Loan Crisis, Savings and Loan Crisis, Savings and Loan crisis, Savings and Loan scandal, Savings and loan crisis of the late 1980s, Savings and loan scandal, US Savings and Loan Scandal.

References

[1] https://en.wikipedia.org/wiki/Savings_and_loan_crisis

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