The thrift industry

The thrift industry has undergone significant changes during the 1980s and early 1990s. Once a highly regulated industry, deregulation during the 1980s brought about a new era of competition and consolidation in the industry that has resulted in widespread changes in the way that banks and savings and loans conduct their operations. This research examines the new environment in which financial institutions operate, and considers the specific ramifications on one institution in particular.

The late 1980s were dominated by the failure of many financial institutions in the savings and loan crisis. There was increased demand by the public for greater regulation of an industry which, once deregulated, had engaged in speculative investment practices and other activities which led to widespread failure. Since taxpayers are ultimately responsible for guaranteeing the deposits of failed institutions, greater emphasis was placed on creating an environment in which institutions would not put their depositors' funds at such great risk.

The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) was a response to the many savings and loan failures during the 1980s. Under FIRREA, the Federal Home Loan Bank Board was disbanded with the regulatory role it provided taken over by the new Office of Thrift Supervision, part of the Treasury Department. The supervisory role that the Board provided is now handled by the Federal Housing Finance Board. The Federal Saving

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rt-time employees. Where the wage cost previously was $3068 per week, it is now $2589 per week, and the bank is not liable for the benefits for the five part-time workers, resulting in an even greater savings. The challenge to me as the manager of the department is how to motivate the group as a whole to meet the goals and objectives of the department while maintaining an economic and efficient cost structure. There is also the question of whether it is better to manage part-time workers or full-time workers in terms of a long-term career. There is a perception that part-time workers are not as dedicated to their jobs as are full-time workers, but I have not found that to be the case. We have working mothers who are glad for the income but who do not want to pay for after-school child care for their children. For them, the situation is ideal and they are as dedicated as full-time employees. There does tend to be a higher turnover rate with some workers, particularly those who work the weekend shift, but that can be mitigated by careful screening of applicants during the hiring phase. Because the institution is concerned with its cost structure, offering monetary bonuses is not an option for motivating employees. Instead,

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