The accounting issues at failed savings and loan institutions included:
A) The failure to provide adequate allowances for loan losses
B) The failure to disclose dubious deals between the S&Ls and some of its major customers
C) The existence of inadequate controls to prevent inadequate allowances and control for dubious deals
D) All of these

Question

Quizplus · Accepted Answer

All of the given options were accounting issues at failed savings and loan institutions. The failure to provide adequate allowances for loan losses, the failure to disclose dubious deals between the S&Ls and some of its major customers, and the existence of inadequate controls to prevent inadequate allowances and control for dubious deals were all significant factors that led to the failure of many S&Ls in the 1980s and 1990s.

The Accounting Issues at Failed Savings and Loan Institutions Included