09 October 2008

Remembering the Keating Five

Amidst the release of a short film by the Obama Campaign on the Keating Five Scandal, Time magazine investigates:

"An investigation into Lincoln Savings and Loan uncovered flagrant violations of these regulations, exceeding the limit by over $615 million. But before any measures could be taken against the company, five Senators came calling at the FHLBB, requesting that the charges against Lincoln not be pursued, on the basis that the S&L was a major employer in their states. These Senators — McCain , John Glenn (D-OH), Alan Cranston (D-CA), Donald Riegle (D-MI) and Dennis DeConcini (D-AZ) . . . One of the only elements that linked the men together was Charles Keating. The banker had been a major contributor to each of their campaigns, donating close to $1.4 million dollars total. Keating also considered John McCain to be a close personal friend, with whom he'd shared vacations and business ventures."

". . . when Keating was asked whether his financial support had influenced the Senators on his behalf, he responded 'I want to say in the most forceful way I can: I hope so.'"
The Senate Ethics Committee found that McCain had broken no law, but had engaged in "poor judgment".

CNN analyzed the claims directly and agreed the film is: "true"

No comments: