An expansionary policy Act signed during the 80’s that is still in place today is the Monetary Control Act of 1980. This Act consisted of 2 parts, which also includes the Depositary Institution Deregulation of 1980. Prior to the approval of this act, only the banks associated with the Federal Reserve were mandated to report deposits from the public and had a regulated interest rate, which placed them at a huge disadvantage due to the fact that the public was opting towards mutual funds in order to increase savings. As mentioned in the World Public Library (2016), the approval of this Act allowed for all the banks in the nation to report deposits, to charge any interest for loans and increased the deposit insurance from $40,000 to $100,000. This enabled financial institutions to be part of a more competitive market. (Depository Institutions Deregulation and Monetary Control Act of 1980, 2016).
The second Act that greatly influenced the start of the decade was the Garn-St.Germain Act of 1982. It mainly focused on thrift financial institutions which are geared towards savings, mutual funds and mortgage loans. This Act restricted institution from charging the amount in full of a mortgage if any of the following applied (Kass, 2010):
• Transfer of property resulting from divorce or property settlement agreement.
Transfer to spouse or kids.
Transfer to a family member resulting from death of a borrower.
Transfer due to death of a joint tenant.
It is not all fun and games…