[The senators left at this point for another vote.] [We resumed when Senators DeConcini, McCain, and Riegle returned.]
CIRONA I also wanted to note that the Bank Board has had a lot of problems with Arthur Young, and is thinking of taking disciplinary action against it.
BLACK: Not for its actions here. Primarily because of its Texas office, which has never met a direct investment. They think everything is a loan. This has quite an effect on the income you can claim.
PATRIARCA: By regulation we have adopted a regulatory capital standard.
DECONCINI: And you’ll take control of them if they fail your net worth standard – you’ll take operational control of them.
CIRONA: That’s speculative. We’d take steps to reduce their risk exposure.
RIEGLE: What would require them to sell?
CIRONA: We’d probably have them decrease their growth. Time and again we’ve found rapid growth associated with loss. Lincoln has grown rapidly.
BLACK: Are you sure you want to talk about this? We haven’t made any recommendation to the Bank Board yet. The Bank Board decides what action to take. These are very confidential matters.
DECONCINI: No, then we don’t want to go into it. We were just asking very hypothetically and that’s how you [indicating Mr. Cirona] were responding.
CIRONA: That’s right.
DECONCINI: Can we do something other than liquidate them?
CIRONA: I hesitate to tell an association what to do. We’re not in control of Lincoln, and won’t be. We want to work the problem out.
McCAIN: Have they tried to work it out?
CIRONA: We’ve met with them numerous times. I’ve never seen such cantankerous behavior. At one point they said our examiners couldn’t get any association documents unless they made the request through Lincoln’s New York litigation counsel.
RIEGLE: Well, that does disturb me – when you have to go through New York litigation counsel. What could they do? Is it too late?
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, 88 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, 314 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 (90 articles, 0 quicklinks, 1 diaries, 27 comments)
on Friday, February 22, 2008 at 5:15:54 PM
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