Which of the Following Are Reasons That Explain Why Regulators

Multiple Choice

Which of the following are reasons that explain why regulators pursued a policy of regulatory forbearance toward thrifts in the early 1980s?

A) Regulators knew that the FSLIC did not have sufficient funds to close insolvent S&Ls and pay off their depositors.
B) Regulators were probably too close to the people they were supposed to be regulating to close down thrifts and put them out of business.
C) Regulators preferred to sweep the problems that thrifts were suffering under the rug in the hope that they would go away as the economy improved.
D) All of the above explain regulatory forbearance.
E) Only A and B of the above explain regulatory forbearance.