Surveying the modern course of the thrift industry, from the Federal Home Loan Bank Act of 1932 to the current efforts at restructuring, Lawrence J. White addresses the essential questions of the S&L crisis: what happened, why it happened, and what must be done so that it never happens again. White, who from November 1986 to August 1989 was a Board Member of the Federal Home Loan Bank Board, combines his knowledge as an insider with the insights of an economist to bring a much-needed fresh perspective on the S&L mess. He shows that, rather than the result of widespread fraud, the crisis was rooted in the highly unusual economic conditions of the early 1980s, poorly thought-out deregulatory policies, and flawed accounting practices. White offers far-reaching recommendations for reform, such as better methods of gathering information about thrifts before they become insolvent, risk based insurance premiums and stronger powers of early intervention by regulators. An essential guide for economists and policymakers of the future.