ge loan activity of the
savings and loan industry, (3) minimizing the cost to the federal treasury, and (4) preserving the reputation of and pub lic confidence in the finance service industry as a whole.
The problems which are being experienced by the savings and loan industry have been attributed to a number of factors. Chief among these factors cited by federal politicans, industry regulators, and media columnists were (1) fraud, (2) imprudent loans to the small players in the oil industry, and to real estate developers in states heavily dependent upon the oil industry, which, in each instance, were severely and adversely affected by the collapse of world oil prices in the mid 1980s, and (3) a widening gap in the interest rate margin between earning assets and funding liabilities, which resulted, in great part, from home owners defaulting on long term, high interest mortgages issued in the late 1970s.
...