Legislative and policies that are regulatory and in the end heightened the difficulties of this cost cost savings and loan industry. The “Alice in Wonderland” regulatory accounting axioms (RAP) employed by the regulators contributed towards the tragedy.
It’s estimated that the cost of the savings and loan debacle shall price taxpayers $183 million plus interest. Actions taken by Congress and regulators, along with regulatory accounting maxims (RAP), happen commonly cited as major contributing facets for having “misled” and “masked” the rate and degree for the economic deterioration regarding the thrift industry. A larger knowledge of the magnitude and way where the actions of Congress and regulators together with utilization of RAP contributed towards the extent of losses experienced by the thrift industry will help those wanting to work through what went incorrect.
Although countless factors impacted the seriousness of losings suffered by the thrift industry, there have been four major legislative and policy that is regulatory: