1981-1995

By JT678

  • Tax reform

    Tax reform act of 1981: Helped encourage real estate investment.

  • Recession

    Recession of 1982: jobs were lost and the economy went bad.

  • International Lending Supervision Act

    International Lending Supervision Act of 1983: This act regulates the banks to make sure they have adequate capital levels.

  • Banks failed

    100 banks failed in 1985

  • Congress rejects recapitalization

    Congress rejects a $15 billion recapitalization plan for the Federal Savings and Loan Insurance Corporation. Congress approves $10.75 billion the next year.

  • Stock market increase

    In 1987 alone, the stock market increased by 43 percent, hitting a high of 2,746.65 on August 25, 1987. Until Oct. 2, it remained in a slightly lower trading range. Then it started to plummet precipitously. In the two weeks leading up to Black Monday, it fell 15%.

  • FDIC banks failed

    200 FDIC-insured banks failed, totaling $35.7 billion in assets.

  • Loans collapsed

    More than 1,000 of the country's savings and loans had collapsed by 1989. A total of $160 billion was spent on the crisis. Taxpayers paid $132 billion, with the remainder going to the S&L industry. Before going bankrupt, the Federal Savings and Loan Insurance Corporation charged $20 billion to depositors of failed S&Ls. S&Ls is covered by state-run funds in excess of 500. Before collapsing, their failures cost $185 million.

  • Invasion of Iraq

    Iraq invades Kuwait, and the United States and Iraq go to war, resulting in higher oil prices, lower consumption, and lower demand.

  • Gulf War

    Gulf war (Jan 17, 1991 – Feb 28, 1991) Cause: response to Iraq's invasion and annexation of Kuwait arising from oil pricing and production disputes

  • Unemployment rises

    (June) Job losses and unemployment rise and peaked 7.8%

  • World Trade Center bombing.

    The WTC was bombed in 1993.

  • New earning record

    In 1994, banks set a new earnings record, with reported net income of $44.7 billion. The North American Free Trade Agreement links the U.S., Canada, and Mexico into free trade, eliminating some tariffs and phasing out others. Banks invest $19 billion in technology while mergers and consolidations in the banking industry continue to increase.

  • FDIC lowers prices and lunches public website

    In 1995, The FDIC lowers insurance premiums in on July 1. The FDIC launches its first public website in March.