Legislative and regulatory policies extended and in the end heightened the issues associated with the cost savings and loan industry. The “Alice in Wonderland” regulatory accounting maxims (RAP) utilized by the regulators contributed towards the disaster.
It’s estimated that the price of the savings and loan debacle will price taxpayers $183 million plus interest. Actions taken by Congress and regulators, in addition to regulatory accounting maxims (RAP), have now been commonly cited as major contributing facets for having “misled” and “masked” the rate and level of this deterioration that is financial of thrift industry. A better knowledge of the magnitude and way where the actions of Congress and regulators and also the utilization of RAP contributed to your extent of losings suffered by the thrift industry may help those wanting to straighten out what went incorrect.