Legislative and regulatory policies extended and in the end heightened the issues for the savings and loan industry. The “Alice in Wonderland” regulatory accounting maxims (RAP) employed by the regulators contributed to your tragedy.
It’s estimated that the price of the cost cost savings and loan debacle will price taxpayers $183 million plus interest. Actions taken by Congress and regulators, in addition to regulatory accounting maxims (RAP), have already been commonly cited as major contributing facets for having “misled” and “masked” the rate and level associated with the monetary deterioration associated with thrift industry. (more…)