What was one of the factors that caused the saving and loan crisis in the late 1980s and early 1990s?

One key factor that contributed to the savings and loan crisis of the late 1980s and early 1990s was the deregulation of the savings and loan (S&L) industry. This allowed S&Ls to engage in riskier investment activities and make high-risk loans, often without sufficient oversight. Additionally, many institutions made poor lending decisions, leading to significant financial losses when borrowers defaulted. The combination of risky practices and economic downturns ultimately resulted in widespread failures and the need for a government bailout.