SANCHEZ: We don’t know at this point how many of the 52 have defaulted. These loans generally have interest reserves.
GLENN: Well, the interest reserves should run out on many of these.
CIRONA: These are longer term investments.
BLACK: I know that Lincoln has refinanced some of these loans.
GLENN: Some people don’t do the kind of underwriting you want. Is their judgment good?
PATRIARCA: That approach might be okay if they were doing it with their own money. They aren’t; they’re using federally insured deposits.
RIEGLE: Where’s the smoking gun? Where are the losses?
DECONCINI: What’s wrong with this if they’re willing to clean up their act?
CIRONA: This is a ticking time bomb.
SANCHEZ: I had another case which reported strong earnings in 198%. It was insolvent in 1985.
RIEGLE: These people saved a failing thrift. ACC is reputed to be highly competent.
BLACK: Lincoln was not a failing thrift when ACC acquired it. It met its net worth requirement. It had returned to profitability before it was acquired. It had one of the lowest rations of scheduled assets in the 11th District, the area under our jurisdiction. Its losses were caused by an interest spread problem from high interest rates. It, as with most other California thrifts, would have become profitable as interest rates fall.
DECONCINI: I don’t know how you can’t consider it a success story. It lost $24 million in 1982 and 1983. After it was acquired by ACC it made $49 million in one year.
McCAIN: I haven’t gotten an answer to my question about why the exam took so long.
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, 264 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 (85 articles, 0 quicklinks, 1 diaries, 26 comments)
on Friday, February 22, 2008 at 5:15:54 PM
