Savings and Loans Crisis

The Savings and Loan (S&L) Crisis was a financial meltdown in the 1980s and early 1990s involving thousands of savings banks that mainly offered home loans. Many S&Ls faced huge losses due to risky investments, deregulation, and fraud. They lacked enough assets to cover their liabilities, leading to widespread failures. The government had to intervene, costing taxpayers billions. This crisis highlighted weaknesses in regulation and risk management within the financial sector, prompting reforms to improve oversight and prevent future crises.