Loan crisis. Gekko himself was packed off to prison.

See e.g., Agreement Relating to a Loan for the Purchase of Wheat and Flour for Famine Relief in Afghanistan, 4 UST 2941, entered into force 8 January 1953 Agricultural Commodities Agreement, 579 United Nations Treaty Series 29, 16 UST 1078, entered into force 22 May 1965.

The best known tools for this are margin requirements and minimum capital requirements. Similarly, financial authorities should vary the loan to value ratio on commercial and residential mortgages for risk weighting purposes in order to forestall real estate bubbles.

Ideally, they would develop a set of specially tailored financial tools. For example, raising banks capital requirements when credit is booming could restrain lending and strengthen banks cushion against losses, while setting ceilings on loan to value ratios could rein in exuberant property markets, thereby heading off excessive risks for borrowers and lenders.

NEW YORK In the 1987 film Wall Street, the character Gordon Gekko famously declared, Greed is good. His creed became the ethos of a decade of corporate and financial sector excesses that ended in the late 1980 s collapse of the junk bond market and the Savings Loan crisis.