What was the cause of the S&L crisis? What role did governmentguarantees play in that crisis? See any parallel with the Enron mess?
2006-06-17 13:17:26 · 3 answers · asked by ? 2 in Politics & Government ➔ Law & Ethics
The two scandals are completely different. The S&L mess was caused by bad loans. The government insured the depositors. Enron like many other companies used questionable accounting practises to make it look like they were more profitable than they were.
2006-06-17 13:26:59 · answer #1 · answered by Bill 6 · 0⤊ 0⤋
Savings and loans made bad loans to bad credit risks. Some people who worked at the Savings and loans where engaging in criminal acts. People got loans for real estate whose value was inflated.The loans were not guaranteed. Only a fraction of those responsible were ever prosecuted and only a few went to prison.
2006-06-18 02:59:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Can you say Bert Vance and Jimmy Carter.Bert is still spend his gratuity from the scandal
2006-06-17 20:21:04 · answer #3 · answered by Anonymous · 1⤊ 0⤋