SPATIAL DIMENSIONS OF THE SAVINGS-AND-LOAN CRISIS

Large numbers of savings and loan companies (S&Ls) failed in the late 1980s and early 1990s. This paper explores the origins and development of the S&L crisis, embedding the topic within the wider theorization of the post-Keynesian state, particularly the critical role played by deregulation. Next it focuses on the geography of S&L failures and the ir causes. Third, an econometric analysis of the determinants of S&L f ailures finds them to be highly susceptible to local economic conditio ns. Fourth, it examines inter-regional transfers of failed S&L assets and liabilities, and measures statistically the importance of proximit y between buying and selling regions as well as the economic structure of the purchasing region. The conclusion contrasts these findings to those of commercial bank failures.