During the early 1980s, regulators kept many insolvent or nearly insolvent thrifts from being closed by

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By allowing many assets to be carried on the books at face value rather than market value, regulators effectively disguised the true extent of the thrifts' problems and delayed their closure. This practice is known as " forbearance." It gave the thrifts time to try to earn their way out of trouble, but it also meant that the problems became much larger and more expensive to resolve when they were finally tackled.

During the Early 1980s, Regulators Kept Many Insolvent or Nearly