[...]... of the century Several common themes emerge from the papers in this volume: the degree and pattern of regulation and returns for savings and loans are inversely related As regulations increased and distorted the institutional evolution of savings and loans, savings and loans’ asset base and rates of return deteriorated Inappropriate regulations and supervision failures not only failed to inhibit the. .. organization gave us the first leg of the savings and loan crisis, for although FSLIC was called an insurance fund, it was not precisely that While mutual savings banks were permitted to join the FDIC, savings and loans were not The FDIC had been created as an independent agency; the FSLIC was created as a subsidiary of the Federal Home Loan Bank Board (FHLBB) – and the bank board was not only a regulatory agency... private practice since 1965 representing savings and loan associations, savings and loan holding companies, private mortgage insurers, mortgage bankers, savings and loan industry groups, and officers and directors of savings and loan associations His government service experience includes the Federal Home Loan Bank Board, Federal Savings & Loan xxii Insurance Corporation where he was General Counsel, and. .. Bartholomew and Bradley (1990), Barth and Brumbaugh (199 4a) , Barth and Brumbaugh (1994b), Barth and Wiest (1989), Barth, Brumbaugh, Sauerhaft and Wang (1989) xxvi Yago and Siegel, 1994; Yago and Trimbath, 2003), we seek to separate myth from reality The implications of this specific episode of financial crisis go far beyond the events of the last quarter of the 20th century The savings and loan crisis is a. .. in a crisis produced by regulatory failure The replication of this pattern of inappropriately restrictive regulations repeats itself around the world in massively costly bank runs and market collapses that burden governments and taxpayers and close capital markets to firms A remarkable consensus emerges from the data and analysis in this volume Former regulators, scholars, and legal and financial practitioners... and the Federal Home Loan Mortgage Corporation Leibold has also litigated on behalf of insurers and savings and loans associations He received his J.D from the University of Pennsylvania DONALD MCCARTHY McCarthy is a Research Analyst at the Milken Institute and works primarily on developing metrics for measuring entrepreneurs’ access to financial capital and financial innovations designed to democratize... and loans as financial institutions REASSESSING THE SAVINGS AND LOAN CRISIS 20 YEARS LATER The business and public policy issues – deregulation, capital structure and strategy, supervisory policies, regulatory and financial mismanagement and accounting transparency – in the history of savings and loans reappear with increasing frequency in every subsequent financial crisis we have observed The Mexican... were then loaned out in the same community for home loans Although mutual savings banks and building and loan societies retained individual characteristics, they were often lumped together Some of the greatest differences could be observed during the Depression: 438 savings and loans failed between 1930 and 1933, compared to only one mutual savings bank during that same time period Mutual savings banks... decades proved to be a stable, if not exciting, financial services business Yet another part of the foundation for the savings and loan crisis was laid in the 1950s when government regulations first constrained savings and loan liabilities to short-term obligations, and it was then that the tax laws first favored long-term assets By the end of the 1950s, the mismatching of assets and liabilities was... standards and regulation was born A federal charter required mutual ownership until 1976 But FSLIC insurance was available whether a 6 Pilzer (1989) pp 5 2-5 3; White (1991) pp 18 0-1 93 xxx state or federal charter was held So state charters came to be more desirable, and during the 1950s and 1960s the number of state-chartered savings and loans grew and came to outnumber federal institutions And, in many . burden governments and taxpayers and close capital markets to firms. A remarkable consensus emerges from the data and analysis in this volume. Former regulators, scholars, and legal and financial practitioners converge. Darby 103 INTERNATIONAL IMPLICATIONS OF THE SAVINGS AND LOAN CRISIS WHAT LESSONS MIGHT CRISIS COUNTRIES IN ASIA AND LATIN AMERICA HAVE LEARNED FROM THE SAVINGS AND LOAN MESS? by Edward J. Kane THE LESSONS. THRIFTS by Arthur W. Leibold, Jr. 31 REGULATORY REGIMES AND MARKETS: THE CASE OF SAVINGS AND LOANS by Catherine England THE SAVINGS AND LOAN CRISIS: UNRESOLVED POLICY ISSUES by R. Dan Brumbaugh, Jr. and