Garn-St. Germain Depository Institutions Act

If you created an algorithm to generate obscure-sounding names for wonky banking legislation, it couldn't spit out anything more perfect then the "Garn-St. Germain Depository Institutions Act." And, in fact, the name does refer to some wonky bank legislation.

In 1982, Congress passed the law to deregulate the savings and loan industry. S&Ls work like banks, in that they take deposits and loan out money, mostly for home mortgages. However, they're organized differently from commercial banks, and fall under different regulation.

Garn-St. Germain (which, on second thought, sounds more like an English lord from a Jane Austen novel) eased some of these regulations. In addition, the law allowed adjustable-rate mortgage loans, both for S&Ls and for banks.

The changes opened up the banking industry and probably accelerated home ownership. However, the loosening guidelines have potentially created some problems (though economists argue about the extent).

The savings and loan industry hit a crisis in the mid-1980s, forcing a government bailout. Experts differ on the impact of Garn-St. Germain on that situation, but it did happen a few years after deregulation.

Meanwhile, adjustable-rate mortgages contributed to the subprime mortgage bubble of the 2000s, which eventually sparked the financial crisis of 2007-2008.