Answer: After the Reagan administration loosened regulations on savings and loan institutions, Many S&Ls made bad loans and went bankrupt.
Bad loans and poor and risky practices were some of the effects that caused the regulations on savings and loan A good number of institutions had become engaged in risky lending practices and investments.Then the government would have to engage in bailouts as well as tighter regulations because they did not want to have an issue that is pof the nature in the future
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