Final answer:
During the early 1980s, the federal government responded to the severe problems plaguing savings and loan associations by implementing a bailout program.
Step-by-step explanation:
In response to the severe problems plaguing savings and loan associations during the early 1980s, the federal government responded by implementing a bailout program. This program aimed to provide financial assistance and stability to the troubled savings and loan institutions. The government paid out at least $150 billion to holders of insured deposit accounts at these institutions to ensure the protection of depositors' funds.