When the savings and loan industry collapsed in the 1980s, all of the big accounting firms, except for Arthur Andersen, experienced heavy losses because of their liability for audit work on the collapsed financial institutions.
<h3>What caused the
industry collapse in the 1980s?</h3>
The early 1980s recession was responsible for the collapse of most industries in the 1980s. The recession was a serious economic recession that affected the world in the early 1980 and early 1983, and it was the most severe recession since World War II.
The main factor that lead to the recession was the 1979 energy crisis which was caused by the Iranian Revolution which caused a disruption to the global oil supply and saw oil prices rising sharply in 1979 and early 1980. This rise in oil prices pushed up the rates of inflation in several to new double-digit highs and caused economy problems.
However, during the period when the savings and loan industry collapsed in the 1980s, all of the big accounting firms, except for Arthur Andersen, experienced heavy losses because of their liability for audit work on the collapsed financial institutions.
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