Here we go again. The government is spending billions of tax dollars to bail out some fat cats on Wall Street. They even want to help other investment banks become commercial banks. Lehman blew million-dollar investments, now we have to trust the brothers, and deposit our kids college/retirement funds in those very same banks. Come again…?
Government spent 2.3 billion in tax dollars to bail out the Savings and Loan crisis in the 1980’s/90’s. And who was right there in the middle of it all? John McCain! The Arizona Senator and four other fellow senators: Dennis DeConcini of Arizona, Alan Cranston of California, John Glenn of Ohio and Donald Riegle, of Michigan apparently got way too cozy with a rich banker named Charles Keating.
Keating ran the Lincoln Savings and Loan, in California. He made some “bad loans”, involving highly risky/shady real estate deals. (Wall Street was also repackaging and selling chunks of risky/shady? mortgages before its money-making house of cards came crashing down. S&L customers said they didn’t know the bonds they were suckered into buying were uninsured and very risky. Customers today say they didn’t understand ARMs,(Adjusted Rate Mortgages)and many investors/companies apparently didn’t realise the repackaged mortgages they were buying into, were equally risky!)
When federal investigators started sniffing around, Keating ran to his buddies John McCain and four other Senators, dubbed: the “Keating Five” to try and help him block the investigation. All five, including McCain, were accused of corruption.
McCain’s wife Cindy and her dad invested nearly half-a-million-dollars in a business venture with Keating. Keating also contributed more than 100-thousand-dollars to John McCain’s campaign. McCain, his family, and their baby-sitter flew at least nine times at Keating’s expense, on his personal jet. The McCain’s little trips included flights to Keating’s super-luxurious Bahamas retreat. (You could never accuse McCain of being elitist. Blue-collar workers from small town America, including Alaska, were there too! But being so ELITIST, these factory workers, farmers and lumberjacks chose to travel economy class, on American Airlines.)
McCain should have disclosed those trips, under House rules. But he did not disclose them until the scandal broke in 1989. When the bad smell hit the fan, McCain paid Keating more than $13,000.00 for the flights.
The Senate Ethics Committee criticized McCain for showing: “poor judgment.” Keating served five years in prison for his corrupt mismanagement of the S&L Company.
Check it out. Google search: John McCain and the S&L crisis.