FDIC: Historical Timeline

The economy slows because of “stagflation,” the economic problem of excess capacity and unemployment coexisting with inflation and no economic growth.

The S&L industry has huge volumes of low, fixed-rate mortgages that were issued in the 1950s and 1960s. The gap between what the S&Ls earn on these mortgages and what S&Ls pay for new deposits erodes the capital of the S&Ls.

In the era of financial deregulation in the 1980s, S&Ls embark on speculative ventures, many of which are … Read the rest