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What was one cause of the Savings and Loan crisis in the 1980s?

Anot enough gold to back loans
Blosses from risky loans
Ctoo much regulation
Ddefaults on sub-prime mortgages

Verified Answer :

lr1265

High interest rates, the deregulation of the banking industry, and bad loans were the causes of the Savings and Loan crisis in the 1980s. I would choose B.

millermoldwarp

Correct answer:

B. losses from risky loans

One of the reasons for the savings and loan crisis in the 1980s was the implementation of new investment powers, thus introducing new risks and speculative opportunities that were difficult to administer and of which there was no experience.

In addition, the volume of the loan did not have a good administration. An example of this was non-residential construction loans.

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