IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Is There a Link Between the American S&L Crisis of the 80s and the Subprime Crisis? An Analysis of Bank Returns

  • Loredana Ureche-Rangau
  • Aurore Burietz

Between 2000 and 2002, the American Federal Open Market Committee has strongly decreased its target rate. This decrease, associated with external economic factors as well as innovative financial practices has influenced investors’ behaviour. In this paper, we analyze the financial causes of the subprime crisis, in comparison with the American S&Ls crisis of the 1980s. We perform an event study on banks returns and show that only the monetary policy of the FED, i.e. interest rates, seems to have influenced, to some extent, these returns. Our analysis also stresses how securitization practices may explain one of the noticeable differences between the S&L crisis and the subprime crisis’ consequences while their origins seem to be similar.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by CEPII research center in its journal International Economics/Economie Internationale.

Volume (Year): (2010)
Issue (Month): 122 ()
Pages: 57-88

in new window

Handle: RePEc:cii:cepiei:2010-2tc
Contact details of provider: Postal: 113, rue de Grenelle, 75700 Paris SP07
Phone: 33 01 53 68 55 00
Fax: 33 01 53 68 55 01
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cii:cepiei:2010-2tc. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.