Well according to the article it destroyed a lot of banks when asset prices stopped rising.

> “You could see that no one anticipated that adjustment, even after Volcker began to address inflation. They didn’t think it would happen to them,” Hoenig recalled. Overall, more than 1,600 banks failed between 1980 and 1994, the worst failure rate since Depression.

I had not personally made that connection to S&L failures but getting out of a bubble has to impose costs to somebody.