Other banking companies as well as knowledgeable runs, especially Trademark Bank and you will Earliest Republic Financial. A proven way they performed this was to increase their access to mutual deposits as an easy way away from efficiently expanding deposit insurance policies. The newest Federal Offers and you can Loan Insurance Business (FSLIC) had been designed to insure deposits kept because of the deals and loan associations (“S&Ls”, otherwise “thrifts”). Due to a great confluence away from events, much of the newest S&L industry try insolvent, and several highest banking companies have been in trouble as well.
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