The financial crisis that began in the 1980s was the result of lax government regulations and management fraud that led to the closure of more than 1,000 savings and loans. The 2007 crisis was the result of risky mortgage loans and investments connected with those loans. In each case the situation resulted in borrowers’ inability to pay back loans and caused many to lose their homes due to foreclosure.
Answer: The financial crisis of 2007 to 2008 is considered the worst since the Great Depression's wave of bank failures. But another banking crisis, which took place during the 1980s and early 1990s, ranks as one of the worst global credit disasters in history. Often overlooked amid the clamor of the 2008 credit bubble collapse, what became known as the savings and loan crisis (S&L) ultimately led to a massive taxpayer-funded rescue of an industry that essentially collapsed.
