1) “Bureaucratic gambling” refers to
A) the strategy of thrift managers that they would not be audited by thrift regulators in the 1980s due to the relatively weak bureaucratic power of thrift regulators.
B) the risk that thrift regulators took in publicizing the plight of the S&L industry in the early 1980s.
C) the strategy adopted by thrift regulators of lowering capital requirements and pursuing regulatory forbearance in the 1980s in the hope that conditions in the S&L industry would improve.
D) the risk that regulators took in going to Congress to ask for additional funds.
2) That several hundred S&Ls were not even examined once in the period January 1984 through June 1986 can be explained by
A) Congress”s unwillingness to allocate the necessary funds to thrift regulators.
B) regulators” reluctance to find the specific problem thrifts that they knew existed.
C) slower growth in lending meant that less regulation was needed.
D) Congress”s unwillingness to listen to campaign contributors.
3) The bailout of the savings and loan industry was much delayed and, therefore, much more costly to taxpayers because
A) of regulators” initial attempts to downplay the seriousness of problems within the thrift industry.
B) politicians listened to the taxpayers rather than the S&L lobbyists.
C) Congress did not wait long enough for many of the problems in the thrift industry to correct themselves.
D) regulators could not be fired, therefore, they didn”t care if they did a good job or not.