After the Reagan administration loosened regulations on savings and loans (S&Ls), several consequences followed:
1. Many S&Ls made bad loans and eventually went bankrupt: With fewer regulations in place, some S&Ls engaged in risky lending practices, leading to substantial financial losses and bankruptcies within the industry.
2. People had more investment opportunities: The relaxed regulations provided individuals with increased investment options as S&Ls offered higher-risk, potentially higher-return investments.
3. The banking industry asked for more regulation: The failure of many S&Ls due to the looser regulations prompted calls for increased oversight and regulation within the banking industry to prevent similar financial crises in the future.
