Now Is the Time for S&L Regulatory Reform

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Now is the time for S&L regulatory reform

Recent steps by the Federal Home Loan Bank Board to improve the regulation, supervision, examination, and accounting procedures of FSLIC-insured thrifts arrive in the wake of two decades of weak supervision and regulation. These efforts come much too late to help with the hundreds of thrifts that have gone--or are about to go--belly up.

The ABA's FSLIC Oversight Committee has released its second white paper, Savings and Loan Association Regulatory Reform: Action Recommendations and Historical Perspective. The latest effort focuses on reforms most needed in the regulation and supervision of thrifts.

The …