Which of the following reasons explain why federal regulators adopted a policy of regulatory forbearance toward insolvent financial institutions in the early 1980s?

Question

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All of the above reasons contributed to the policy of regulatory forbearance towards insolvent financial institutions in the early 1980s. The FSLIC lacked sufficient funds to cover insured deposits in the insolvent S&Ls, regulators were reluctant to close firms that justified their regulatory existence, and the Federal Home Loan Bank Board and the FSLIC were hesitant to admit their inadequacy in addressing these problems.

Which of the Following Reasons Explain Why Federal Regulators Adopted