Final answer:
The mid-1980s and mid-1990s saw significant challenges in the financial sector. The liability insurance crisis began with the deregulation of S&Ls leading to numerous bankruptcies, followed by the 2008-2011 banking crisis where faltering mortgage-backed securities led to widespread bank failures and federal intervention.
Step-by-step explanation:
The periods of the mid-1980s and mid-1990s saw significant challenges in the financial sector, with a particular focus on the liability insurance crisis. Partial deregulation and the rise of savings and loan institutions (S&Ls) engaging in riskier loans led to bankruptcy for hundreds of these institutions by the late 1980s. The United States faced another severe banking crisis between 2008 and 2011, with a major downturn in housing prices triggering a cascade of bank failures, as these institutions were heavily invested in mortgage-backed securities that rapidly lost value. Consequently, 318 banks failed, which led to federal interventions including bailouts and the government taking control of failing institutions like AIG, seeking to stabilize the economy and prevent a complete collapse of the banking system.