S&L Crisis (Savings and Loan Crisis)

The Savings and Loan (S&L) Crisis was a financial collapse in the 1980s and early 1990s, involving thousands of savings and loan institutions in the U.S. struggling due to risky investments, deregulation, and economic factors. Many S&Ls engaged in poor lending practices, often financing speculative real estate projects, leading to widespread losses. When losses soared, the government intervened, ultimately costing taxpayers billions of dollars to stabilize the financial system. The crisis highlighted regulatory failures and the importance of prudent oversight in banking.