Saturday, August 16, 2008

How come nobody's talking about McCain and the Savings & Loan scandal?

OK, I'm just a philosopher. But tell me this. How come nobody’s talking about the Lincoln Savings scandal and John McCain’s part in it? It’s pretty relevant to the issue of McCain’s judgment, wouldn’t you say?

Essentially, businessman Charles Keating, chairman of American Continental Corporation (ACC was the parent company of Lincoln here in Irvine), had contributed to the campaigns of several senators, including pal John McCain, and when what was left of the feds’ regulatory mechanism (Saint Ronald had deregulated the S&L industry in the early 80s) commenced closing in on Keating’s corrupt operation, five of these senators, including McCain, met with regulators on Keating’s behalf in 1987. In the end, Keating’s riverboat gambler ways led to bankruptcy and seizure of ACC in 1989.

The episode cost taxpayers $2 billion. Over 20,000 elderly investors lost their life savings. Keating went to prison, but he was released after only five years.

As I recall, when he was asked whether his campaign donations had bought influence, Chuck said: “I want to say in the most forceful way I can: I certainly hope so.” (See Political Corruption, p. 43.)

The larger Savings and Loan crisis cost the taxpayer over $120 billion. And the government let it happen. John McCain was in the thick of this FUBAR.

Gosh, John, that doesn’t show much judgment on your part!

McCain was fifty years old at the time of the 1987 meeting with regulators.

5 comments:

Anonymous said...

McCain's already apologized for that error in judgment.

Anonymous said...

Everyone is too busy reading "Obamanation."

torabora said...

BO has Rezko problems....at the very least.

I don't think McAmnesty's S&L problems are anywhere close to Reagan's culpability. After all when Reagan signed the enabling legislation that set up the S&L debacle he giddily said on camera "gentleman, we've hit the jackpot".

McAmnesty was still a political puppy back then. He petted all the dogs and let them lick his hand. He's been quite chastened by that experience. Nowadays he just carries the water for his states Indian gambling interests.

Chunk thinks that there is something out there known as a politician untainted by corruption. There actually was one once. His name was "Jesus". The Roman's trumped up some specious charges about him being disruptive to the public order and crucified his noncompliance ass. Hasn't been hardly any like him since either. Joan of Arc and Gandhi come to mind...they got whacked too. Being burned alive gives me the willies.

Anybody got any spare graft laying around for Torabora? Just askin'...

Anonymous said...

Yeah, how come?

Anonymous said...

Someone just tonight was telling me about an guy who recanted his Protestantism under threat of being burned alive during Queen Mary's attempt to re-institute Catholicism in England. (Already have forgotten his name.)

He was off the hook, apparently, but then he thought about it, recanted his recantation, voluntarily walked to the fire, and placed into the fire his hand with which he signed the original recantation. Then he allowed the rest of himself to be burned.

Besides all the obviously important, interesting, and horrible issues in that story, I think that his act ranks pretty high in the list of acts displaying integrity and courage.

Roy's obituary in LA Times and Register: "we were lucky to have you while we did"

  This ran in the Sunday December 24, 2023 edition of the Los Angeles Times and the Orange County Register : July 14, 1955 - November 20, 2...