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Savings & Loan Associations:
Savings & Loan Associations (S&Ls) are financial institutions that offer savings accounts and make loans to individuals and businesses. They were originally created to help people save money and buy homes, but they have expanded their services to include a wide range of financial products and services, including checking accounts, credit cards, and investment products. S&Ls are typically smaller than commercial banks and focus on serving their local communities.
An example of an S&L is a local credit union that offers savings accounts, checking accounts, loans, and other financial services to its members. Credit unions are member-owned financial institutions that are typically smaller than commercial banks and focus on serving their local communities.
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Savings & Loan Associations (S&Ls) are still around today, although their role in the financial industry has changed since the Savings & Loan crisis of the 1980s.
The Savings & Loan crisis was a financial crisis that occurred in the United States in the 1980s and early 1990s. It was caused in part by a combination of factors, including rising interest rates, risky lending practices, and deregulation of the banking industry. Many S&Ls had engaged in risky lending practices, such as making loans to borrowers with poor credit, investing in high-risk real estate projects, and offering high-interest savings accounts to attract deposits.
When interest rates rose in the 1980s, many S&Ls were unable to make enough money on their loans to cover the high interest rates they were paying on their deposits. As a result, many S&Ls became insolvent and were forced to close. The US government stepped in to bail out many of these failing S&Ls, at a cost of over $100 billion to taxpayers.
Since the Savings & Loan crisis, the role of S&Ls in the financial industry has changed. Many S&Ls have merged with commercial banks or converted to mutual savings banks, which are owned by their depositors rather than by shareholders. However, some credit unions still operate as S&Ls, offering a range of financial products and services to their members.
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They're lenders and savers, in the financial game!
They help folks save money, and buy homes too,
And offer services to help you through.
They're like banks, but smaller in size,
With a focus on serving, their local ties.
You can open an account, and save some dough,
And they'll help you get a loan, to make your dreams grow!
Investment group based lenders, and financial services too,
They offer a range of products, to help you through.
So if you need a loan, or want to save some cash,
Find a Savings & Loan Association, and make a dash!