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In the 1980s, the financial sector suffered through a period of distress that was focused on the nations savings and loan (SL) industry. Inflation rates and interest rates both rose dramatically in the late 1970s and early 1980s.
Central to any claim that deregulation caused the crisis is the Gramm‐​Leach‐​Bliley Act. The core of Gramm‐​Leach‐​Bliley is a repeal of the New Deal‐​era Glass‐​Steagall Acts prohibition on the mixing of investment and commercial banking.
The deregulatory trend of the 1980s repealed the restrictions on teaser rates. The lift of this restriction allowed banks to enter the subprime loans market. This gave banks a new market with consumers that previously were not accessible.
The financial deregulation of the early 1980s was designed to benefit depository institutions, especially the thrift industry, but it also altered the composition of the market. The DIDMCA removed interest rate ceilings on deposits, which removed the interest rate advantage that thrifts had held over banks.
Without any regulatory framework in place, companies are free to exploit consumers interests. For instance, the deregulation of the financial sector gave financial institutions the power to decide how they would use their capital and how they would charge consumers fees.
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In seeking to expand its current knowledge of financial crisis management, GAO studied federal actions that successfully contained four major financial crises of the turbulent 1980sthe Mexican debt crisis of 1982; the near failure of the Continental Illinois National Bank in 1984; the run on state-chartered, privately
The Monetary Control Act of 1980 radically changed the role of the Federal Reserve in the interbank clearing market. Among other things, the Act required the Fed to give all depository institutions equal access to its payments services and to price those services competitively.
The great stock market crash of 1929 and the ensuing depression are generally credited with providing the impetus for federal securities legislation. The first major federal legislation enacted in reaction to the stock market crash was the Securities Act of 1933 (33 Act).

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