4th August 1989 : The Savings and Loan crisis which involved more than 500 savings and loan associations led President George Herbert Bush to consider a $150 billion bail out in an unprecedented piece of legislature. The Ways and Means Committee Chairperson, Dan Rostenkowski and his partners, were opposed to the bill. If the bill passed, $75 million a year would go to the Justice Department to be the watch dog for institutional fraud.
The reasons believed to cause the problems for the Savings and loan institutions included the issue of the new high-interest money-market funds, long term mortgages at low fixed interest rates ( Interest Rates Year End Federal Reserve 10.50% ) from our 1989 , and finaly poor lending practices to to risky ventures.
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