Savings and loan regulators allowed S&Ls to include in their capital calculations a high value for intangible capital called

Question

Quizplus · Accepted Answer

Goodwill is a common intangible asset that represents the value of a business or S&L's reputation and customer relationships. Regulators allowed S&Ls to include goodwill as part of their capital calculations to help boost their reported financial health, even though it was not a liquid asset that could easily be sold off in times of financial distress. This practice ultimately contributed to the S&L crisis in the 1980s and 1990s.

Savings and Loan Regulators Allowed S&Ls to Include in Their