Category Archives: Net Credit

Congress, Regulators, RAP, plus the Savings and Loan Debacle

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Legislative and regulatory policies prolonged and finally heightened the issues associated with cost savings and loan industry. The “Alice in Wonderland” regulatory accounting axioms (RAP) employed by the regulators contributed towards the catastrophe.

It’s estimated that the expense of the cost cost cost savings and loan debacle shall cost taxpayers $183 million plus interest. Actions taken by Congress and regulators, in addition to regulatory accounting principles (RAP), were commonly cited as major contributing factors for having “misled” and “masked” the rate and level for the monetary deterioration regarding the thrift industry. Continue reading