Records on Savings and Loan Scandal

The materials in FOIA 1999-0550-F are a selective, not necessarily all inclusive, body of documents responsive to the topic of the FOIA. Researchers should consult the archivist about related materials. FOIA 1999-0550-F contains materials related to the Savings and Loan scandal of the 1980s and early 1990s. The original S&L charter restricted thrift institutions to making long term mortgage loans and accepting short term deposits. When rising inflation and interest rates began to pose a serious threat to the thrift industry, Congress relaxed regulations and introduced legislation intended to make federally 1999-0550-F 2 chartered S&L's more competitive. The deposit insurance cap was increased, restrictions on the use of brokered deposits were loosened, and thrifts were allowed to expand their portfolios. Backed by federally guaranteed deposits, many thrifts invested in risky commercial real estate ventures. After many of these investments failed, the government was forced to seize and liquidate insolvent thrifts and organize an S&L bailout. A number of S&L operators were prosecuted for engaging in fraudulent lending practices. Almost all of the material responsive to this FOIA consists of studies, analyses, testimony, talking points and news clippings which detail the origins of the S&L scandal and outline solutions to the growing crisis. Read less