Accredited directors were once S&L regulators

By Gary Jacobson

August 23, 2007 at 4:14pm

Accredited Home Lenders Holding Co., a major subprime lender, said Wednesday it would close 65 branches around the country and fire 1,600 workers as the mortgage meltdown continues to spread.

For at least two of the company’s directors, it must have seemed like deja vu all over again.

Richard Pratt and Bowers Espy were S&L regulators in the early 1980s as that industry was in crisis.

Pratt was Chairman of the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation. Espy was deputy director of financial analysis and policy research at the Federal Home Loan Bank Board. In 1981, Pratt predicted that an average of one S&L per day would hit zero net worth.

The government bailout of the thrift industry, which extended well into the 1990s, eventually cost taxpayers more than $100 billion. Both the FSLIC, which insured deposits, and the FHLBB were abolished in 1989.

After Espy went to work for Merrill Lynch, he acquired assets from the Resolution Trust Corporation, which disposed of properties held by failed S&Ls.

Follow Muckety on Twitter Tweet This! Share on Facebook

Click here to sign up for the Muckety Newsletter

 Read related stories: Business · Mortgage · Subprime  


Leave a Comment

The relationship map to the left is interactive.
• Solid lines are current relations. Dotted lines are former relations.
• Expand items with + signs by double-clicking or by selecting multiple items in the map and pressing the "e" key.
• Move an item in the map by clicking and dragging.
• You can also delete items, separate boxes and save maps. Right-click on the map or select Map Tools for these options.
• Find out more about an item in the map by right-clicking on the item and choosing Information about...
• View map color key.
• This interactive map requires Flash player.

Become a fan of Muckety on Facebook

  • Search for stories
    Special Features

Follow Muckety on Twitter Follow Muckety on Twitter
Muckety has no direct connection to most of the people or organizations listed on these pages.
We are unable to forward personal messages or provide personal contact information.
We make every effort at Muckety to ensure that our data is correct and timely. However, relationships are in constant flux and we cannot guarantee accuracy. If you come across incorrect or outdated information, please let us know by email.
© 2017 Muckety LLC