Because enforcement was a lengthy process if contested by the institution, the Bank Board preferred either to use voluntary supervisory agreements or to rely on the states to use their powers. More important, the lack of resources and the limited number of enforce- ment attorneys (generally only five through 1984) led the FHLBB to adopt policies that made it unlikely an institution would contest a case. For example, enforcement staff would compromise on the terms of a cease-and-desist order, pursue only the strongest cases, and generally because of lack of precedents avoid cases alleging unsafe and unsound prac- tices. Unfortunately, these policies undermined the effectiveness of both contemporary and future.
