CASE ANALYSIS: THE LINCOLN SAVINGS AND LOAN SCANDAL

In fact, the Lincoln nest egg and Loan scandal did not occur within philosophical and policy vacuums, and the structure and regulation of the general economy and much specifically the financial sector of the economy was not created by the Congress and the financial services industry in the absence of guidance and pressure from the Reagan and Bush Administrations.

In the United States, depicted object politicians, from the president on down, tend to treat the savings and give crisis, as they do the medicine crisis, and all other crises: as if it is some alien animal in our midst, which has no social intercourse to our society, and must be fought to the death. As is true with respect to the drug crisis, and other crises, this approach to the savings and impart crisis overlooks the facts that (1) the savings and loan crisis is the result of actions and policies integral to American society and federal political policy, and (2) the savings and loan crisis is not an isolated phenomenon within the American financial environmentit is related to other quite novel financial sector debacles. In contemporary American society, brass policy exerts a significant influence on much or less all aspects of daily life. Prospects for the financial well bein

Lawrence, Anne T. (1991). The Lincoln Savings and Loan scandal. 13pp.

The dominant actors in the development and adoption of policy related to the savings loan crisis have been, since 1989, President Bush, Richard Dar manhood (Director of the Office of Management and Budget), John Sununu (former clean House Chief of Staff), the FDIC, the Board of Governors of the Federal Reserve, and the Democratic leading in both the Senate and the House of Representatives.

The Bush Administration has systematically attempted to understate the magnitude of the savings and loan crisis, because, to do so, enables the president to fail to include in budget proposals the aim of funding required to address the crisis effectively, to continue to proclaim that additive federal tax revenues are unnecessary, and to continue to oppose whatever reregulation of the banking and finance sector of the economy. The FDIC has proved to be a wishy spent player, attempting first to go along with electric pig positions on the crisis, and accordingly being forced to go to the Congress and ask for more funds to deal with the problem. The Board of Governors of the Federal Reserve has been a house divided. Paul Volker, who left the board in 1987 kick upstairs considerable reregulation of the banking and financial sector, and m whatsoever of the present board members divided up his outlook. His replacement as board chair, Alan Greenspan, however, favors more deregulation (Guttmann, 1987, pp. 49). The Democratic leaders in the Congress have criticized the administration for not requesting sufficient funding to adequately deal with the savings and loan crisis; however, they have not mobilized their congressional majorities in any successful efforts to assure adequate funding.

. . . determined by prevalent policy, by those decisions which shape contemporary environments in communities, workplaces, homes, and schools. Public policy sets parameters for the mode and character of industrial and agricultural production, corporate man
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