Taxpayers Were Served Poorly by Thrift Regulators in the 1980s

question 22

Multiple Choice

Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by

• A)regulators' desire to escape blame for poor performance,leading to a perverse strategy of "bureaucratic gambling."
• B)regulators' incentives to accede to pressures imposed by politicians,who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
• C)Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans.
• D)politicians strong incentives to act in their own interests rather than the interests of the taxpayers.

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Definitions:

Defense Attorneys

Legal professionals who represent and defend the rights of individuals accused of crimes in court.

Not Guilty by Reason of Insanity

A legal defense where a defendant claims they were unable to understand the nature of their crime or differentiate right from wrong due to a mental disorder at the time of the offense.

Institutionalized

The process of establishing something as a norm or standard within an organization or culture, or the state of being accustomed to a specific routine or environment, often used in the context of long-term care or imprisonment.

Not Guilty by Reason of Insanity

A legal defense wherein the defendant is considered not responsible for their criminal actions due to a psychiatric disease or defect at the time of the criminal act.