For a variety of reasons, the FHLBB s examination, supervision, and enforcement practices were traditionally weaker than those of the federal banking agencies. Before the 1980s, savings and loan associations had limited powers and relatively few failures, and the FHLBB was a small agency overseeing an industry that performed a type of public service. Moreover, FHLBB examiners were subject, unlike their counterparts at sister agencies, to stringent OMB and OPM limits on allowable personnel and compensation. 6 It should be noted that the S&L examination process and staff were adequate to supervise the traditional S&L operation, but they were not designed to function in the complex new environment of the 1980s.
