When Regulators Chose to Allow Insolvent S&Ls to Continue to Operate

question 31

Multiple Choice

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.

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Definitions:

Special Bankruptcy Courts

Courts that specifically handle bankruptcy cases, part of the U.S. federal court system, dedicated to managing and adjudicating bankruptcy filings.

Federal Court Structure

The hierarchical system of courts at the federal level in the United States, including the Supreme Court, Circuit Courts of Appeals, and District Courts.

Priority List

A ranked listing of items or tasks according to their importance or urgency.

Bankruptcy Code

The body of federal law governing insolvency and the process by which individuals and entities can discharge or restructure debts.