During the period of 1986-1995 the failures at savings and loan institutions were caused by:
A) Stealing $300 million from shareholders
B) questionable home mortgage loans and risky investments
C) Creating cookie jar reserves
D) Engaging in a Ponzi scheme

Question

Quizplus · Accepted Answer

The failures at savings and loan institutions during the period of 1986-1995 were caused by questionable home mortgage loans and risky investments. This led to a high number of defaults and losses, ultimately resulting in the failure of many institutions. Stealing from shareholders, creating cookie jar reserves, and engaging in Ponzi schemes were not major causes of the failures during this time period.

During the Period of 1986-1995 the Failures at Savings and Loan