The deregulation of U.S.banking in the 1980s led to
A)increased profits at all banks
B)no change in banks' conduct
C)more bank failures than in the 1930s
D)many bank failures as banks began to hold riskier assets
E)the end of FDIC insurance for banks that held risky assets

Question

Quizplus · Accepted Answer

The deregulation of U.S. banking in the 1980s led to many bank failures as banks began to hold riskier assets. Deregulation allowed banks to take on more risk by investing in riskier assets such as high-yield bonds and commercial real estate. This led to a wave of bank failures in the late 1980s and early 1990s, costing taxpayers billions of dollars in bailout money.

The Deregulation of U