In the 1980s, many thrifts that failed had made loans to oil companies located in Louisiana, Texas,

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In the 1980s, many thrifts that failed had made loans to oil companies located in Louisiana, Texas, and Oklahoma.

When oil prices fell, these companies, the regional economy, and the thrifts all experienced financial problems.

What types of risk were inherent in the loans that these thrifts had made? (LG 20-1)

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