1) Explain how moral hazard and adverse selection made the S&L crises worse. Discuss this with respect to both the S&L depositors and the S&L operators?
2) Explain 3 ways that Regulatory Accounting Procedures made an insolvent S&L appear solvent?
3) Who were the primary beneficiaries of the S&L crises? Who or What was the major cause of the 200 billion dollar cleanup expense. What entities figured 10% or less in the cleanup but were the major focus of the media?