The Mess, the Scandals of the S and Ls

The backbone of the nation’s long-standing commitment to home ownership was the savings and loan industry, the principal mortgage lender for many years. The government protected it against its larger competitors and provided a modest rate advantage to ensure that it would always have ample deposit funds for home lending. For more than forty years, the arrangement generally worked. Homebuyers enjoyed a modest hidden subsidy and, except during episodes of tight money, most working people ...