1) When regulators chose to allow insolvent S&Ls to continue to operate rather than to close them, they were pursuing a policy of ________.
A) regulatory forbearance
B) regulatory kindness
C) ostrich reasoning
D) ignorance reasoning
2) Savings and loan regulators allowed S&Ls to include in their capital calculations a high value for intangible capital called
A) goodwill.
B) salvation.
C) kindness.
D) retribution.
3) Reasons regulators chose to follow regulatory forbearance rather than to close the insolvent S&Ls include all of the following except
A) they had insufficient funds to close all of the insolvent S&Ls.
B) they were friends with the S&L owners.
C) they hoped the problem would go away.
D) they did not have the authority to close the insolvent S&Ls.