Bonds News

CHRONOLOGY-S&L crisis of the 1980s

(Reuters) - The Savings and Loan crisis of the 1980s saw more than 1,000 S&Ls collapse, costing the U.S. government more than $100 billion.

Here is a chronology of the Savings and Loan crisis:

1978 - The Financial Institutions Regulatory and Interest Rate Control Act eases rules on S&L investment in land development, construction and education loans.

March 1980 - The Depository Institutions Deregulation and Monetary Control Act removes interest rate ceiling on deposit accounts.

Dec 1982 - The Garn-St Germain Depository Institutions Act enables federally chartered S&Ls to diversify activities.

May 1985 - Ohio and Maryland S&L failures helped kill state deposit insurance funds.

Aug 1985 - The Federal Savings and Loan Insurance Corp., which insured S&L accounts, has only $4.6 billion. Losses to its fund are estimated at $20 billion.

Jan 1987 - The FSLIC fund is called insolvent by the Government Accounting Office.

Aug 1987 - The Competitive Equality Banking Act authorizes $10.8 billion recapitalization of the FSLIC.

Aug 1989 - The Financial Institutions Reform Recovery and Enforcement Act abolishes the FHLBB and the FSLIC. The Resolution Trust Corp. is created to liquidate assets of the insolvent S&Ls.

Source: Federal Deposit Insurance Corp. (