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Tax reform act of 1981: Helped encourage real estate investment.
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Recession of 1982: jobs were lost and the economy went bad.
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International Lending Supervision Act of 1983: This act regulates the banks to make sure they have adequate capital levels.
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100 banks failed in 1985
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Congress rejects a $15 billion recapitalization plan for the Federal Savings and Loan Insurance Corporation. Congress approves $10.75 billion the next year.
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In 1987 alone, the stock market increased by 43 percent, hitting a high of 2,746.65 on August 25, 1987. Until Oct. 2, it remained in a slightly lower trading range. Then it started to plummet precipitously. In the two weeks leading up to Black Monday, it fell 15%.
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200 FDIC-insured banks failed, totaling $35.7 billion in assets.
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More than 1,000 of the country's savings and loans had collapsed by 1989. A total of $160 billion was spent on the crisis. Taxpayers paid $132 billion, with the remainder going to the S&L industry. Before going bankrupt, the Federal Savings and Loan Insurance Corporation charged $20 billion to depositors of failed S&Ls. S&Ls is covered by state-run funds in excess of 500. Before collapsing, their failures cost $185 million.
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Iraq invades Kuwait, and the United States and Iraq go to war, resulting in higher oil prices, lower consumption, and lower demand.
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Gulf war (Jan 17, 1991 – Feb 28, 1991) Cause: response to Iraq's invasion and annexation of Kuwait arising from oil pricing and production disputes
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(June) Job losses and unemployment rise and peaked 7.8%
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The WTC was bombed in 1993.
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In 1994, banks set a new earnings record, with reported net income of $44.7 billion. The North American Free Trade Agreement links the U.S., Canada, and Mexico into free trade, eliminating some tariffs and phasing out others. Banks invest $19 billion in technology while mergers and consolidations in the banking industry continue to increase.
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In 1995, The FDIC lowers insurance premiums in on July 1. The FDIC launches its first public website in March.