CIRONA: With me is Mike Patriarca, head of our agency function. Mike has joined us recently from the Comptroller of the Currency, where he was in charge of multi-national banks. Before that he was a lawyer for seven years.
McCAIN: We won’t hold that against you.
CIRONA: You were a litigator.
PATRIARCA: No, I was in enforcement seven years.
CIRONA: Also with me is Bill Black, our general counsel. Bill was formerly director of litigation for the Bank Board for three years. Next to bill is Richard Sanchez. He’s been with the San Francisco bank for years. Before that he was an auditor for a commercial bank and before that he was in school.
DECONCINI: Thank you for coming. We wanted to meet with you because we have determined that potential actions of yours could injure a constituent. This is a particular concern to us because Lincoln is willing to take substantial actions to deal with what we understand to be your concerns. Lincoln is prepared to go into a major home loan program – up to 55% of assets. We understand that that’s what the Bank Board wants S&Ls to do. It’s prepared to limit its high risk bond holdings and real estate investments. It’s even willing to phase out of the insurance process if you wish. They need to deal with, one, the effect of your reg... Lincoln is a viable organization. It made $49 million last year, even more the year before. They fear falling below 3 percent (net worth) and becoming subject to your regulatory control of the operations of their association. They have two major disagreements with you. First, with regard to direct investments. Second, on your reappraisal. They’re suing against your direct investment regulation. I can’t make a judgment on the grandfathering issue. We suggest that the lawsuit be accelerated and that you grant them forbearance while the suit is pending. I know something about the appraisal values [Senator Glenn joins the meeting at this point] of the Federal Home Loan Bank Board. They appear to be grossly unfair. I know the particular property here. My family is in real estate. Lincoln is prepared to reach a compromise value with you.
CRANSTON: [He arrives at this point] I’m sorry I can’t join you but I have to be on the floor to deal with the bill. I just want to say that I share the concerns of the other Senators on this subject. [Cranston leaves.]
DECONCINI: I’m not on the Banking Committee and I’m not familiar with how all this works. I asked Don Riegle to explain to me how the Federal Home Loan system works because he’s on Senate Banking. He explained it to me and that’s why he’s here.
McCAlN: Thank you for coming. One of our jobs as elected officials is to help constituents in a proper fashion. ACC is a big employer and important to the local economy. I wouldn’t want any special favors for them. It’s like the Apache helicopter program that Dennis and I are active on. The Army wants to cut back the program. Arizona contractors make major components of the Apache helicopter. We believe that the Apache is important to our national defense. That’s why we met with General Dynamics and tried to keep the program alive.
I don’t want any part of our conversation to be improper. We asked chairman Gray about that and he said it wasn’t improper to discuss Lincoln. I’d like to mention the appraisal issue. It seems to me, from talking to many folks in Arizona, that there’s a problem. Arizona is the second fastest growing state. Land values are skyrocketing. That has to be taken account of in appraisals.
Stephen Pizzo has been published everywhere from The New York Times to Mother Jones magazine. His book, Inside Job: The Looting of America's Savings and Loans, was nominated for a Pulitzer.
Why is it, whenever the "Keating Five" are mentioned, the fact that Neil Bush was a paid director of the Savings & Loan, and approved the $132 million in loans from Silverado to Bill Walters and Kenneth Good, is never mentioned. He received $550,000 in salaries from the company funded by Walters and Good, plus a $100,000 loan from Good that was subsequently forgiven. This was all hushed up until G.W. Bush's presidential campaign was successfully culminated. The "Five", in case you've forgotten, were Alan Cranston, Dennis DeConcini, John Glenn, Donald Riegle and JOHN McCAIN
by
lucydavis (0 articles, 0 quicklinks, 0 diaries, 90 comments)
on Friday, February 22, 2008 at 10:45:41 AM
The Keating Five/Lincoln S&L and Silverado/Neil Bush were two different cases entirely. Same variety of crookery tho. For a good overview of that case see"
You might want to check your facts a bit on that White House furniture thing a little bit. I am not going to waste my time refuting something proved false over six years ago, but either the OMB or the Auditor General did a thorough accounting of White House furnishings and alleged vandalism after the Bushies made those allegations and found no basis to the charges. As to your other claims, the Republicans had six years and a willing, highly funded special prosecutor to prove any of them, and the best he could do was unearth a minor sexual escapade unworthy of any mention in any other time than ours. The Clintons are the most investigated people on the planet Earth, and your claims at this late date are absurd. Not that I like the Clintons, because I do not. NAFTA sold this nation out.
by
W.M.L. (0 articles, 0 quicklinks, 0 diaries, 281 comments)
on Friday, February 22, 2008 at 5:10:09 PM
Deadender conservatives have fed off this kind of nonsense for nearly 14 years now, beginning with Gingrich et al. When their own misconduct/mistakes/mismanagement/corruption become known they resort to "look over there, not over here" and "they're even worse" tactics.
Hopefully come Jan 2009 they and their bankrupt ideologies will join Communism on the trash heap of history -- where it so richly deserves to be. And with it the knuckle-dragging intellects of folks like this guy.
Steve
by
Stephen Pizzo (88 articles, 0 quicklinks, 1 diaries, 26 comments)
on Friday, February 22, 2008 at 5:15:54 PM
