Economics

The Savings and Loan Crisis: Loss of Public Trust and the Federal Bailout, 1989-1993

Alternative Titles
Archives Unbound
Description
Date Range: 1989-1993 (there is a small amount of material from 1981-1988)
Content: 11,657 images
George H.W. Bush Presidential Library

Detailed Description

The savings and loan crisis of the 1980s and 1990s included the failure of 747 savings and loans (also known as thrifts). The ultimate cost of the crisis has been estimated to have totaled around $160.1 billion, about $124.6 billion of which was directly paid for by the federal government via a financial bailout under the leadership of President George H.W. Bush—that is, the American taxpayer provided the funding for the bailout, either directly or through charges on their savings and loan accounts and increased taxes—which contributed to the large budget deficits of the early 1990s.

The deregulation of savings and loans (S&Ls) gave them many of the capabilities of banks, without the same regulations as banks. S&Ls could choose to be under either a state or a federal charter. Immediately after deregulation of the federally-chartered thrifts, state-chartered thrifts rushed to become federally chartered, because of the advantages associated with a federal charter. In response, states such as California and Texas changed their regulations so to be similar to federal regulations. More important, however, was the hazard of insuring already troubled institutions with public dollars. In the view of a savings and loan president or manager, the trend line was fatal over the long haul, thus to get liquid, the institution had to take on riskier assets, particularly land. When the real estate market crashed, the savings and loans went with it.

In an effort to take advantage of the real estate boom and high interest rates of the late 1970s and early 1980s, many S&Ls lent far more money than was prudent, and to risky ventures which many S&Ls were not qualified to assess, especially regarding commercial real estate. L. William Seidman, former chairman of both the Federal Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation, stated, "The banking problems of the ’80s and ’90s came primarily, but not exclusively, from unsound real estate lending."

This publication provides a unique perspective on the unfolding S&L crisis and the federal government’s response. There are materials on the various causes, including deregulation, congressional attempts to "band aid" the "festering" S&L problem, and federal efforts to prop-up failing S&Ls, implementation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, federal seizure and liquidation of insolvent thrifts, prosecution of S&L management for fraudulent lending practices, and congressional support for a bailout.

This publication encompasses the recently declassified/released records from two manuscript collections: the Savings and Loan Crisis and Savings and Loan Crisis: Richard Breeden Records. These documents are not available in any other online or microfilm product.

The Savings and Loan Crisis collection consists of correspondence, memoranda, studies, analyses, testimony, talking points and news clippings from the White House and various staff offices and agencies. A sampling of the various records includes—

• White House Office of Records Management Subject Files on Legislative Leadership Meetings

• White Office of Cabinet Affairs files on S&L deregulation; HR535; Schumer Amendments; "Toward a Safer America—Attacking Savings and Loan Institution Fraud"; and the S&L Strategy Group.

• White House Counsels Office files: banking and Savings and Loans; Lincoln Savings & Loan and the Keating 5; Executive Privilege and Will Ball; Savings and Loan Crime Bill.

• White House Office of Legislative Affairs files on the U.S. Chamber of Commerce Meeting - Economic Policy Committee and Task Force on the Thrift Industry; Office of Thrift Supervision Directory; Bipartisan efforts on Savings and Loan crisis.

• White House Office of Policy Development files on S&L failures and the James Pinkerton Files on the Savings and Loan Ceremony.

• White House Office of Public Liaison files of Leigh Ann Metzger and the Public Liaison Files on the Savings and Loan Bailout.

• Bush Vice Presidential Records: White House Staff and Office Files on Task Force on Regulatory Relief; Thrift Portfolio Test, Powers, and Regulation; and the National Savings and Loan League.

• Office of Consumer Affairs: federal records on Savings & Loan Rescue; the Thrift Bill, 1989; and the Office of Thrift Supervision.

The second collection, Savings and Loan Crisis: Richard Breeden Records, contains congressional, lender, and constituent correspondence together with White House and Administration memoranda concerning the Thrift Restructuring Bill, QTL (qualified thrift lender test), background on banking problems, Congressional testimony, and credit union and thrift industry views on S&L restructuring. Subject File FG134 (Federal Home Loan Bank Board) contains information of resignations and appointments to the federal Home Loan Bank Board, Freddie Mac Board, and Housing Finance Board, proposed S&L bailout plans, Congressional testimony concerning S&L’s, and Congressional correspondence concerning appointments and oversight of various financial boards.

Publisher’s Note: This collection comprises the FOIA Requests 1999-0550-F and 1998-0356-F, filed by the George H.W. Bush Library. All available documents, including those subsequently-opened and interfiled at the time of scanning, have been included. There are a very small number of individual documents that remain classified or unprocessed. "Document Withdrawal/Redaction Sheets" have been included in this collection. These withdrawal/redaction sheets itemize documents that have been withdrawn due to either national security or privacy restrictions, by the staff of the George H.W. Bush Presidential Library.

 

Type
E-Book(s)
Text Collection
Coverage
1989-1993
Stable URL
http://www.lib.umich.edu/database/link/30690
Access
Authorized UM users (+ guests in UM Libraries)Authorized UM users (+ guests in UM Libraries)
Subjects

AREAER Online

Alternative Titles
Annual Report on Exchange Arrangements and Exchange Restrictions Online
AREAR
IMF AREAER
Description

The Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER) tracks the exchange rate and trade regimes of all members of the International Monetary Fund (currently 187 countries and three territories). The online version has data back to 1999.  The print version goes back to 1950.

Type
Statistics
Stable URL
http://www.lib.umich.edu/database/link/30668
More Information
Access
Authorized UM users (+ guests in UM Libraries)Authorized UM users (+ guests in UM Libraries)
Subjects

International Historical Statistics

Alternative Titles
IHS
Description
International Historical Statistics includes a wide variety of economic, population, labor, education, transportation data on the Americas and Europe, but also hard-to-find data on Africa, Asia and Oceania. 
 
The data covers 260 years (1750-2010). Users will find the ability to conduct statistical analysis across both time and geopolitical boundaries particularly valuable. Data tables can be downloaded as ePDFs and/or Excel files.
 
 

 

Type
Numeric Data
Statistics
Coverage
AFRICA, ASIA, OCEANIA; THE AMERICAS; and EUROPE from 1750-2010
Stable URL
http://www.lib.umich.edu/database/link/30148
Access
Authorized UM users (+ guests in UM Libraries)Authorized UM users (+ guests in UM Libraries)
Subjects

Encyclopedia of Consumption and Waste: The Social Science of Garbage

Alternative Titles
Social Science of Garbage
Description

"What we throw away today tells a story in real time and becomes an important and useful tool for academic study. Trash is studied by behavioral scientists who use data com­piled from the exploration of dumpsters to better understand our modern society and culture. Why does the average American household send 470 pounds of uneaten food to the garbage can on an annual basis? How do different societies around the world cope with their garbage in these troubled environmental times? How does our trash give insight into our attitudes about gender, class, religion, and art? The Encyclopedia of Consumption and Waste explores the topic across multiple disciplines within the social sciences and ranges further to include business, consumerism, environmentalism, and marketing to comprise an outstanding reference for academic and public libraries." -- About This Encyclopedia, Encyclopedia of Consumption and Waste

Carl A. Zimring & William L. Rathje, eds.

 

Type
Encyclopedia
Coverage
2012
Stable URL
http://www.lib.umich.edu/database/link/30091
Access
Authorized UM users (+ guests in UM Libraries)Authorized UM users (+ guests in UM Libraries)
Subjects

Global Business and Economics in Video

Alternative Titles
Business & Economics in Video
Description

Documentaries, case studies, biographies and interviews that focus on the human side of commerce.  Subjects covered include globalization, operations & logistics, management, marketing, finance, strategy, entrepreneurship, macroeconomics, microeconomics, international business, negotiations, ethics, cross-cultural communication, technology, and more.

When complete this streaming video collection will include over 500 hours of video.  Trial access runs through May 7, 2014.

Videos can be searched and browsed.  All videos include audio transcripts. Users can save clips, and create and share playlists of selections.  

Type
Video
Stable URL
http://www.lib.umich.edu/database/link/29475
Access
Access for authorized UM users + guests on a trial basisAccess for authorized UM users + guests on a trial basis
Subjects

Economist Intelligence Unit Cancellation

Our subscription to the Economist Intelligence Unit, including EIU Country Indicators, will end on March 30, 2013.  We apologize for this inconvenience.

EIU has been provided by Kresge Business Library.  The Kresge Library suggests these alternatives to EIU after 3/30/13:

Country Overview Reports (available across the U of M)


Economic Data Sources (available across the UofM)

 

Page maintained by Jennifer Nason Davis
Last modified: 03/27/2013

Africa Yearbook Online

Description

The Africa Yearbook covers major domestic political developments, the foreign policy and socio-economic trends in sub-Sahara Africa – all related to developments in one calendar year. The Africa Yearbook contains articles on all sub-Saharan states, each of the four sub-regions (West, Central, Eastern, Southern Africa) focusing on major cross-border developments and sub-regional organizations as well as one article on continental developments and one on European-African relations.

Type
Handbook
Stable URL
http://www.lib.umich.edu/database/link/29422
Access
Authorized UM users (+ guests in UM Libraries)Authorized UM users (+ guests in UM Libraries)
Subjects

Microfinance Gateway

Alternative Titles
CGAP Microfinance Gateway
Description

The Microfinance Gateway is an online resource for the global community dedicated to advancing access to financial services for the poor.

The Gateway features a collection of research and publications, original articles and resource centers on trends and important industry developments, and the latest announcements, news, events, trainings, and job opportunities related to microfinance and broader financial inclusion topics.

Type
Database
Stable URL
http://www.lib.umich.edu/database/link/11929
Access
Open access for all usersOpen access for all users
Subjects

AgEcon Search

Alternative Titles
Ag Econ Search
Description

 Free, open-access repository of full-text scholarly literature on agricultural and applied economics.  Includes working papers, conference papers and journal articles.  Includes topics such as food security and poverty, land economics, agricultural and food policy, and food safety.

Type
E-Journal(s)
Subject Gateway
Coverage
1949-
Stable URL
http://www.lib.umich.edu/database/link/11909
Access
Open access for all usersOpen access for all users
Subjects

Labadie Photograph Collection, University of Michigan

Description

The images in this database comprise the general photograph holdings of the Labadie Collection.

Not included are photographs that make up part of archival collections. Those will be listed in the finding aids to the individual collections. You may request digital scans of these photographs, or you may view them in person. If you wish to inquire about the use of these images, please email special.collections@umich.edu.

Type
Images
Stable URL
http://www.lib.umich.edu/database/link/11861
Access
Open access for all usersOpen access for all users
Subjects

Pages

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