The thrift industry has been studied extensively in recent years due to the enormous costs to resolve failed thrifts during the late 1980s and early 1990s. Almost all of the studies have focused on the causes of these failures. Yet, an important but relatively neglected development that merits...

In this paper, a new and superior alternative mortgage design is presented and evaluated. The mortgage design is motivated by a desire to reduce the exposure of both borrowers and lenders to risks that result from high and variable interest rates, while at the same time providing a mechanism by...

The biggest financial disaster in modern history struck the savings and loan industry during the 1980s. This paper argues that the unifying cause of this debacle was the way in which the federal deposit insurance system is structured. The fundamental cause was not fraud and deregulation, as is...