How Deregulation Fueled the Financial Crisis :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website: "Ronald Reagan was elected and grabbed the conservative mantle. A year later, the shock troops of the heralded Reagan Revolution launched their attack and embarked on a massive, systematic de-regulatory campaign. President Reagan's first treasury secretary, former Merrill Lynch & Co. Chief Executive Officer Donald T. Regan , became chairman of the Depository Institutions Deregulation Committee.
In a burst of deregulatory bravado in 1982, Treasury Secretary Regan ushered through the Garn-St. Germain Depository Institutions Act . Key provisions of the Act ultimately coalesced with Treasury Secretary Regan's protection of the lucrative “ brokered deposits ” business, in which Merrill was a major player, and paved the way for the future collapse of the savings and loan industry.
Some of the provisions in that 1982 Act would later be blamed for thousands of bank failures. The provisions permitted the following:
Allowed savings and loans to make commercial, corporate, business or agricultural loans of up to 10% of their assets."
'via Blog this'
No comments:
Post a Comment