In many instances management lacked the ability or experience to judge them, or to administer giant volumes of nonresidential building loans. Peter Lynch, a mutual fund supervisor at Fidelity Investments, believed lack of oversight on property debt was a key issue within the financial savings and mortgage disaster. He was closely invested in S&Ls earlier than and in the course of the crisis via the Magellan Fund. Savings and mortgage associations may choose to be under either a state or a federal charter.
How They Differ From Other Banks
This decision was made in response to the dramatically rising rates of interest and inflation charges that the S&L market skilled because of vulnerabilities within the construction of the market...Read More