Keating Five and Wall Street Crisis Match, and Why?
WHO WERE THEY?Alan Cranston (D-CA)Dennis DeConcini (D-AZ)John Glenn (D-OH) John McCain (R-AZ) (Now Running Presidential Candidate) Donald W. Riegle (D-MI)
What was Keating About? From Wikipedia:
The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s. The five senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald W. Riegle (D-MI), were accused of improperly intervening in 1987 on behalf of Charles H. Keating, Jr., chairman of the Lincoln Savings and Loan Association, which was the target of a regulatory investigation by the Federal Home Loan Bank Board (FHLBB). The FHLBB subsequently backed off taking action against Lincoln.Lincoln Savings and Loan collapsed in 1989, at a cost of over $3 billion to the federal government. Some 23,000 Lincoln bondholders were defrauded and many elderly investors lost their life savings. The substantial political contributions that Keating had made to each of the senators, totalling $1.3 million, attracted considerable public and media attention. After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings, with Cranston receiving a formal reprimand. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised "poor judgment".
http://mccainkeatingfive.com/?p=6 John Mccain Keating Five Great Presidential Material huh?All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they both succeeded. McCain would go on to become the Republican nominee for president in 2008. The Savings and Loan Institutes had been experiencing major problems through the late 60s and 70s due to rising inflation and rising interest rates. Because of this there was a move in the 1970s to replace the role of S&L institutions with banks. This is now the same as what we are seeing now 20 yrs after, controlled and maybe created by the same people. The Savings and Loan industry opened the door for the consumer to not only deposit money into the banking institutes but the account holders received interest on the promise by the bank use of the money they held within their savings accounts. In many cases depositors received 8,10,12% interest into their account and if they had a annuity account these were paying the depositors up to 18% return on the use of the money within the savings and loan institutes use of their money. It was a win and win gamble but because of this consumers were banking and making money which today is almost non-existing! In the early 1980s, under Reagan, regulatory changes took place that gave the S&L industry new powers and for the first time in history measures were taken to increase the profitability of Savings and Loan Institutes at the expense of promoting home ownership. And today we are experiencing the same within the Banks which used the concept of Mortgage Banking and other financial vehicles all and all now creating a shell game to get consumers into a new level of debt pools which lead to today's crisis on Wall Street by the use of Credit Default Swaps and CDO's.
A history of the S&L
What is important to note about the Savings and Loan Scandal of over 20 yrs ago is that it was the largest theft in the history of the world and US tax payers are who was robbed, and today we are seeing a new beginning of the same process by use of causing panic, then you take your money out giving them the right to develop another Resolution Trust Company created within the government to take control of consumer homes which were caused by high risk loans given to consumers who they knew could not keep up with the mortgage loan payments. There were grids created and designed by those within the top of the industry who knew who the people that would fail within buying homes were. Was it the fault of the Mortgage loan officer? No! Why? Well they did not have the full scope of the game created within these banking grids. They were just the paper handlers who were charged with writing up the agreement and making sure that the required documents were in place. Then the Loan officer gave this information over from the hands of the consumer to the hands of the processor who then gave this information over to the bank to approve the loan no one knew what was going on, in the old days this was called "Piece work"- everyone had a piece to do but no one knew the full concept on what was going on this way if questioned they were all clueless. 20 years ago this problem occurred in the Savings and Loan banking industry as they relate to theft because the industry was deregulated under the Reagan/Bush administration and restrictions were eased on the industry so much that abuse and misuse of funds became easy, rampant, and went unchecked. This again was done now within the same format under the Bush Administration! Please look at these sites and read to see what I am talking about because the same players and involved within the current crisis set up to do in un-experience borrowers. The only difference is that they used CREDIT DEFLAUT SWAPS in stead of "Subordination of Property"- themes to move homes into investment pools. http://www.inthe80s.com/sandl.shtml There are several ways in which the Bush family played into this scandal and got away free without the people seeing and understanding what was going on while many within the scandal were using consumers money like piggy banks! The Bush family and other politicians that are still in office and still part of the Bush Jr. administration today helped in creating this consumer nightmare with was tied tightly within the Mortgage Industry. The players were then and maybe are now these folks Jeb Bush, George Bush Sr., and his son Neil Bush all who were implicated in the scandal 20 years ago which cost consumers their life saving and also their homes! At that time the American tax payers had to pay off over $1.4 TRILLION dollars! The reason why no one noticed was because we were thrown within the Gulf War another Oil war game which was paid for to create media coverage and the America people to forget the people who were being investigation on of which was Neil Bush and others who were within our Federal Government. Between 1981 and 1989, when George Bush finally announced that there was a "Crisis"- to the world. Then the Reagan/Bush administration worked to cover up the problem by reducing the number of examinations required of these soon to be failed banks! While this was happening they attacked political opponents who were sounding early alarms about the S&L crisis to cover their tracks! Savings and Loan Industry whistleblowers were aware of significant problems as early 1986 that they felt would require a bailout. (Hmm sound just like what's happening today within the Wall Street nightmare stock markets going up and down uncontrollably and then the final game is to get YOU TO PANIC and remove your money so they can set-up another banking system to do the same thing with again worldwide! And 20 years ago this information was kept from the media until after Bush had won the 1988 elections! And what do we have now hmm well the election and now McCain in the seat, the hot seat as coming maybe President!Jeb Bush defaulted on a $4.56 million in loans from Broward Federal Savings and Loan in Sunrise, Florida. After federal regulators closed this bank, the office building that Jeb used the $4.56 million to finance was reappraised by the regulators at $500,000, which Bush and his partners paid. The taxpayers had to pay back the remaining 4 million plus dollars. Bet you did not recall this one! And how can hard noised Republicans allow this to happen again causing the people to see what is really happening within Wall Street 20 years from that time, yes we know who did what and we are not as stupid as you think! Neil Bush placed in the open as was former Senator John Glenn all having part within this scandal was the most in the media and Neil as a member of the Bush family was under investigation just before the Gulf War! No one can recall the fact that Neil became the director of Silverado Savings and Loan 1985. Then just 3 years later the in Savings and Loan was belly up at a cost of $1.6 billion to tax payers to bail out. Here is the word Bail-Out again hmm! Neil's ties run deep 1. Neil received a $100,000 a so-called loan from Ken Good, of Good International, with no obligation to pay any of the money back.
2. Good was a large shareholder in JNB Explorations, Neil Bush's oil-exploration company. Sounds like "Conflict of Interest"- and the plot gets more intense!
3. Then Neil failed to disclose this conflict-of-interest when loans were given to Good from Silverado, because the money was to be used in joint venture with his own JNB. This was in essence giving himself a loan from Silverado through a third party. (Piggy Bank all the way folks!)
4. Neil then helped Silverado S&L approve Good International for a $900,000 line of credit.
5. Good defaulted on a total $32 million in loans from Silverado.
6. During this time Neil Bush did not disclose that $3 million of the $32 million that Good was defaulting on was actually for investment in JNB, his own company.
7. Good subsequently raised Bush's JNB salary from $75,000 to $125,000 and granted him a $22,500 bonus. 8. Neil Bush maintained that he did not see how this constituted a conflict of interest. And here is more and more Conflicts and ill use of America's Money! · Neil approved $106 million in Silverado loans to another JNB investor, Bill Walters. Neil also never formally disclosed his relationship with Walters and Walters also defaulted on his loans, all $106 million of them. Neil Bush was charged with criminal wrongdoing in the case and ended up paying $50,000 to settle out of court. The chief of Silverado S&L was sentenced to 3.5 years in jail for pleading guilty to $8.7 million in theft. (Keep in mind that you can get more jail time for holding up a gas station for $50.) Neil Bush is working on closing a deal in Florida, where his brother Jeb is governor, to sell a software package to schools with his startup company Ignite.
I watched just before this crisis was announced when Bear and Stern started to fail and Bush Sr. went to China to get Trillions and was turned down and the same time Neil was in South America and Bush Jr headed to Poland all and all seeking out cash to bail-out and cover-up the issue of money being miss handled within Wall Street via Credit Default Swaps, CDO's and other international played Hedge funds where the money was being made on the backs of American Consumers and homes then had within the failing market. Goto this site!