From buildings and loans to bail outs

David L. Mason052182754X, 9780521827546, 9780511217043

For most Americans, the savings and loan industry is defined by the fraud, ineptitude, and failures of the 1980s. These events, however, overshadow a long history in which thrifts played a key role in helping thousands of households buy homes. First appearing in the 1830s, savings and loans, then known as building and loans, encouraged their working-class members to adhere to the principles of thrift and mutual cooperation as a way to achieve the ‘American Dream’ of home ownership. This book traces the development of this industry, from its origins as a movement of loosely affiliated collection of institutions, into a major element of America’s financial markets. It also analyses how diverse groups of Americans, including women, ethnic-Americans, and African-Americans, used thrifts to improve their lives and elevate their positions in society. The book ends with an analysis of the efforts to rehabilitate the industry in the 1990s.

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Table of contents :
COVER……Page 1
HALF-TITLE……Page 3
TITLE……Page 5
COPYRIGHT……Page 6
DEDICATION……Page 7
CONTENTS……Page 9
LIST OF TABLES……Page 11
ACKNOWLEDGMENTS……Page 13
INTRODUCTION……Page 15
BRITISH TRADITIONS OF HOME FINANCE……Page 26
THE STATE OF HOME FINANCE IN AMERICA……Page 30
CREATING AN AMERICAN THRIFT BUSINESS……Page 31
“AMERICANIZING” THE THRIFT BUSINESS……Page 32
DEFINING THE THRIFT MOVEMENT……Page 36
REACHING THE WORKING CLASS……Page 38
REACHING THE SOCIAL REFORMERS……Page 40
GILDED AGE GROWTH……Page 42
THE ROLE OF WOMEN IN B&LS……Page 43
THE “NATIONALS” CRISIS……Page 46
THE LEGACY OF THE NATIONALS……Page 51
CONCLUSIONS……Page 53
2 THE RISE OF THE LEAGUE, 1900–1929……Page 54
PROGRESSIVISM AND THE THRIFT MOVEMENT……Page 55
THE RISE OF THRIFT MOVEMENT ADVERTISING AND PROMOTION……Page 60
MAKING THE THRIFT MOVEMENT MORE PROFESSIONAL……Page 62
NEW LEAGUE STRATEGY, NEW LEAGUE STRUCTURE……Page 65
PROGRESSIVE ERA RECOVERY……Page 66
THE RISE OF ETHNIC THRIFTS……Page 68
THRIFTS IN THE DECADE OF CONSUMERISM……Page 71
POSTWAR PROSPERITY……Page 74
WOMEN MOVE TO THE FORE……Page 76
THE CONSEQUENCES OF GROWTH……Page 77
CONCLUSIONS……Page 82
THE STRUGGLE OVER STATE REGULATION……Page 83
THE LEAGUE AND THE FEDERAL GOVERNMENT……Page 88
HERBERT HOOVER AND THE HOME LOAN BANK……Page 92
FORMING THE BANK AND FAILED EXPECTATIONS……Page 100
ROOSEVELT TAKES COMMAND……Page 103
CREATING FEDERAL SAVINGS AND LOAN INSTITUTIONS……Page 105
SECURING DEPOSIT INSURANCE……Page 107
CONCLUSIONS……Page 111
BODFISH AND THE LEAGUE……Page 114
MOVING TOWARD OPERATIONAL UNIFORMITY……Page 116
THE LEAGUE AND THRIFT ADVERTISING……Page 119
THE “B&L” BECOMES THE “S&L”……Page 120
EXERCISING THE REGULATORY MACHINE……Page 122
THRIFTS AND OTHER NEW DEAL PROGRAMS……Page 125
SURVIVING THE GREAT DEPRESSION……Page 131
EVALUATING THE INDUSTRY……Page 134
FAHEY VS. THE INDUSTRY……Page 137
CONCLUSIONS……Page 140
5 THE GLORY YEARS, 1946–1955……Page 142
PLANNING FOR SUBURBIA……Page 143
FINANCING THE AMERICAN DREAM IN THE 1950S……Page 147
THE LEAGUE IN THE GLORY YEARS……Page 149
EVALUATING THE GLORY YEARS……Page 153
FINE TUNING FEDERAL THRIFT PROGRAMS……Page 154
INCREASED COMPETITION FROM GOVERNMENT……Page 157
THE REGULATED COZIES UP TO THE REGULATOR……Page 160
THRIFTS HIT SOME BUMPS IN THE ROAD……Page 167
CONCLUSIONS……Page 171
THE ECONOMY COOLS OFF AND COMPETITION HEATS UP……Page 173
AN INCREASED FOCUS ON MINORITY HOUSING……Page 177
S&LS AND THE LEAGUE CONTINUE TO GROW……Page 184
EVALUATING THE INDUSTRY……Page 187
THE INDUSTRY SHOWS SIGNS OF DIVISION……Page 189
A REVITALIZED REGULATORY ENVIRONMENT……Page 192
CREATING RATE CONTROLS……Page 196
CONCLUSIONS……Page 200
CONTENDING WITH STAGFLATION……Page 201
A REVOLUTION IN FINANCIAL TECHNOLOGY……Page 206
THE RISE OF CONSUMER ACTIVISM……Page 209
THE LEAGUE STRUGGLES TO ADAPT……Page 212
REGULATORS IN LIMBO……Page 214
EVALUATING THE THRIFT INDUSTRY……Page 216
LURCHING TOWARD DEREGULATION……Page 220
WHY DID 1970S, FINANCIAL REFORM FAIL?……Page 223
CONCLUSIONS……Page 226
8 DEREGULATION AND DISASTER, 1979–1988……Page 227
THRIFT DEREGULATION: ROUND ONE……Page 228
THRIFT DEREGULATION: ROUND TWO……Page 231
REGULATORS EASE THE RULES……Page 234
THE CRISIS BEGINS: 1983–1985……Page 238
THE CRISIS INTENSIFIES: 1985–1987……Page 241
DEALING WITH THE DEBACLE: 1985–1987……Page 243
THE CLEAN UP BEGINS: 1987–1988……Page 248
PROFILES OF FAILURE……Page 251
CONCLUSIONS……Page 253
TOWARD RE-REGULATION……Page 255
ENTER THE RTC……Page 261
WHY DID 1980S FINANCIAL REFORM FAIL?……Page 269
THE “NEW” THRIFT INDUSTRY……Page 274
CONCLUSIONS……Page 278
10 THE AMERICAN SAVINGS AND LOAN INDUSTRY IN PERSPECTIVE……Page 280
THRIFTS AS AN INDUSTRY……Page 281
THE ROLE OF THE TRADE ASSOCIATION……Page 283
THRIFTS IN AMERICA’S POLITICAL ECONOMY……Page 284
THRIFT, HOME OWNERSHIP, AND AMERICAN SOCIETY……Page 286
THE 1980S IN HISTORICAL PERSPECTIVE……Page 287
APPENDIX 1. FRAUD, FORBEARANCE, AND FAILURE: THE CASE OF EMPIRE SAVINGS & LOAN ASSOCIATION……Page 289
THE STORY OF FAILURE……Page 290
IDENTIFYING THE FACTORS OF FAILURE……Page 298
THE ROLE OF FRAUD……Page 300
THE ROLE OF REGULATORS……Page 303
THE AFTERMATH……Page 307
CONCLUSIONS……Page 309
APPENDIX 2. SUCCESS THE OLD-FASHIONED WAY: THE CASE OF MEDFORD COOPERATIVE BANK……Page 311
THE BEGINNINGS OF THE MEDFORD CO-OPERATIVE BANK……Page 312
GROWTH BRINGS CHANGE……Page 314
DEALING WITH THE GREAT DEPRESSION……Page 317
MAINTAINING CONSERVATIVE BUSINESS PRACTICES……Page 319
CHANGE BRINGS GROWTH……Page 321
MCB UNDER JOHN HAND……Page 322
SURVIVING DEREGULATION……Page 324
RESTRUCTURING THE “FAMILY BUSINESS”……Page 326
EXPANDING MCB UNDER ROBERT SURABIAN……Page 327
CONCLUSIONS……Page 330
Congressional Hearings and Reports……Page 333
Federal Home Loan Bank Board Publications……Page 335
Other Federal Government Publications……Page 336
Massachusetts State Government Documents……Page 337
Dissertations and Theses……Page 338
National League Trade Journals……Page 339
Books Used as Primary Sources……Page 340
Newspapers and Periodicals……Page 343
Select Articles Used as Primary Sources……Page 345
Books……Page 346
Articles……Page 353
INDEX……Page 355