Which of the Following Reasons Explain Why Federal Regulators Adopted

Multiple Choice

Which of the following reasons explain why federal regulators adopted a policy of regulatory forbearance toward insolvent financial institutions in the early 1980s?

A) The FSLIC lacked sufficient funds to cover insured deposits in the insolvent S&Ls.
B) The regulators were reluctant to close the firms that justified their regulatory existence.
C) The Federal Home Loan Bank Board and the FSLIC were reluctant to admit that they were in over their heads with problems.
D) All of the above are reasons.
E) Only A and B of the above are reasons.