Savings and loan crisis

The Savings and Loan Crisis was a financial disaster in the United States during the 1980s and early 1990s, where many savings and loan associations (S&Ls) failed due to poor management and risky investments. S&Ls were supposed to take deposits and issue home loans, but they ventured into more speculative activities. When interest rates rose, many S&Ls couldn’t meet their obligations, leading to massive bankruptcies. This resulted in a costly government bailout, costing taxpayers over $100 billion, and prompted regulatory reforms to prevent similar issues in the future.