Savings and loan crisis facts for kids

The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations in the United States. It lasted from 1986 to 1995. In 1996, the General Accounting Office estimated the total cost to be $160 billion, including $132.1 billion taken from taxpayers.

The man behind the crisis was Charles Keating. He was sentenced for his involvement of the crisis. Some people blame Ronald Reagan for the crisis because he signed the Tax Reform Act of 1986 which some might think was a direct result of the crisis.

Images for kids

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  Paul Volcker

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  The Depository Institutions Deregulation and Monetary Control Act signed by President Jimmy Carter on March 31, 1980.

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  President Ronald Reagan signs the Economic Recovery Tax Act of 1981 (ERTA) bill at Rancho del Cielo in 1981

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  Neil Bush

See also

In Spanish: Crisis de ahorros y préstamos para niños