You betcha ass it does and the banking industry is no different than anything else.  If we do not learn from history we will keep making the same mistakes…and guess what Irene?  We did it again!  Made the same mistake that is!

I realize that there may not be too many people who recall the savings and loan thing from the 80’s and 90’s.  But today’s economic has some similarities to the S&L crisis.

Just a few of the similarities:

Elimination of regulations initially designed to prevent lending excesses and minimize failures. Regulatory relaxation permitted lending, directly and through participations, in distant loan markets on the promise of high returns. Lenders, however, were not familiar with these distant markets. It also permitted associations to participate extensively in speculative construction activities with builders and developers who had little or no financial stake in the projects.

Fraud and insider transaction abuses

Dereliction of duty on the part of the board of directors of some savings associations. This permitted management to make uncontrolled use of some new operating authority, while directors failed to control expenses and prohibit obvious conflict of interest situations.

A virtual end of inflation in the American economy, together with overbuilding in multifamily, condominium type residences and in commercial real estate in many cities. In addition, real estate values collapsed.

Anxious to improve earnings, they departed from their traditional lending practices into credits and markets involving higher risks.

Federal and state examination and supervisory staffs insufficient in number, experience, or ability to deal with the new world of savings and loan operations.

The inability or unwillingness of the Bank Board and its legal and supervisory staff to deal with problem institutions in a timely manner. Many institutions, which ultimately closed with big losses, were known problem cases for a year or more. Often, it appeared, political considerations delayed necessary supervisory action.

If you are paying attention to the drama of the economy then all this sounds a bit familiar…..yes…history will come back to bite you in the butt.