After the Garn-St. Germain Act of 1982
cleared the way for the thrift industry to expand its services beyond the basic home-loan business, it took all of seven years for such well-intentioned folks as Charlie Keating to make the industry so "modern" and "competitive" it required a $130 billion (and counting) bailout from taxpayers.
Federal Reserve Bank of Chicago, "Leveling the Playing Field-A Review of the DIDMCA of 1980 and the Garn-St. Germain Act of 1982
," Chicago, IL: Federal Reserve Bank of Chicago, December 1983.
This was undoubtedly true in the case of saving and loan associations after the passage of the Garn-St. Germain Act of 1982
. But no other major acts of financial deregulation occurred except those that allowed interest rate ceilings to rise to adjust to the realities of existing high inflation rates.
If they do not, pursuant to an amendment by Senator Timothy Wirth, a Colorado Democrat, the strict loan-to-value criteria that existed prior to the Garn-St. Germain Act of 1982
will be restored.