Exam 26: Savings Associations and Credit Unions

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

The common bond membership requirement makes it difficult for ________ to diversify their loans.

The purpose of reserve requirements

"Zombie S&Ls"

Which of the following statements about mutual savings banks are true?

Savings banks

Listing large amounts of goodwill as an asset is another way that savings and loans are able to hide the fact that they are insolvent.

The major provisions of the Financial Institutions Reform,Recovery,and Enforcement Act of 1989 included

________ view credit unions as unfair competitors due to government support they receive in the form of tax advantages.

The Competitive Equality in Banking Act of 1987

That taxpayers were poorly served by thrift regulators in the 1980s is now quite clear.This poor performance cannot be explained by

The policy of ________ exacerbated ________ problems as savings and loans took on increasingly huge levels of risk on the slim chance of returning to solvency.

Since 1993,the number of savings and loan associations has ________.

That several hundred S&Ls were not even examined once in the period January 1984 through June 1986 can be explained by

Credit unions view commercial banks as government-supported and hence unfair competitors due to their tax advantages.

Examiners from the Federal Home Loan Bank Board of San Francisco recommended that Lincoln Savings and Loan be seized when they discovered that

Since 1980,the number of credit unions has ________.

In the early stages of the banking crisis in the 1980s,financial institutions were especially hurt by

The Competitive Equality in Banking Act of 1987

Thrifts