>> savings and loans were sleepy little mom-and-pop banks. >> and they could do a lot more than banks. they were under less regulation, if you will. >> jim mcdougal bought madison guaranty savings and loan and began engaging in development loans, loans to help people build properties. >> there weren't a lot of rules in place, and you could loan on anything. >> as he did, he got in way over his head and began to engage in corrupt loans. >> suddenly, the de-regulation gates were open to loan money on anything and everything and to everybody. >> the savings-and-loan revolution freed up a lot of folks to buy into these s-and-l's and start lending practices that you wouldn't see at an ordinary bank. >> mcdougal took it from maybe having assets of $3 million in $100 million in a couple of years. but he's doing outrageous things. he's paying 10% interest on checking accounts. >> i don't think i ever saw a savings and loan as dirty as