Ten years ago, many of the United States’ largest banks announced huge loan loss provisions on doubtful loans to developing countries, while many banks were also struggling under the weight of loans to the energy, agriculture and commercial real estate sectors. By the end of the 1980’s, more than 200 banks were failing annually.
There were more than 1,000 banks on the problem list of the Federal Deposit Insurance Corporation, which is the US banking agency that insures bank deposits and serves as receiver for failed banks. This period includes the costly crisis of the US savings and loan industry -- which is composed of institutions chartered to make home loans available to the American public.