The savings and loan crisis was the result of the inflation and prolonged deflating of the real estate lending bubble in the United States from the early 1980s to the early 1990s.
The savings and loan crisis culminated in the collapse of hundreds of savings and loan institutions and the insolvency of the Federal Savings and Loan Insurance Corporation, costing taxpayers many billions of dollars and contributing to the 1990-1991 recession.
The roots of the savings and loan crisis lie in over-lending, speculation and risk-taking caused by moral hazard created by deregulation and taxpayer bailouts.
Some S&Ls led to outright insider fraud, and some of these S&Ls were aware of and allowed these fraudulent transactions.
As a result of the savings and loan crisis, Congress passed the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), which is a sweeping overhaul of the rules of the savings and loan industry.