Charles H. Keating Jr. »
Posted By not2needy 9 months ago in Business & FinanceIn the aftermath of the savings and loan scandal of the 1980's, Charles H. Keating Jr. became for many a symbol of everything that had gone wrong in a business whose collapse cost American taxpayers over $120 billion.
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not2needy
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not2needy9 months ago
FTA:
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The failure of a bank he controlled, Lincoln Savings and Loan, cost taxpayers $3.4 billion, the most of any thrift. Mr. Keating spent five years in prison after being convicted of federal racketeering charges. Released after the verdict was thrown out, he later pleaded guilty to four counts of fraud.
I guess crime does pay, at least when it involves politicians. -
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Charlson9 months ago
Keating doesn't come close to what the Bush family has done.
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Bush Family Savings & Loans Scandals:
In the early 1980s, under Reagan, regulatory changes took place that gave the S and L industry new powers and for the first time in history measures were taken to increase the profitability of S and Ls at the expense of promoting home ownership.
There are several ways in which the Bush family plays into the Savings and Loan scandal, which involves not only many members of the Bush family but also many other politicians that are still in office and still part of the Bush Jr. administration today. Jeb Bush, George Bush Sr., and his son Neil Bush have all been implicated in the Savings and Loan Scandal, which cost American tax payers over $1.4 TRILLION dollars (note that this is about one quarter of our national debt).
Between 1981 and 1989, when George Bush finally announced that there was a Savings and Loan Crisis to the world, the Reagan/Bush administration worked to cover up Savings and Loan problems by reducing the number and depth of examinations required of S and Ls as well as attacking political opponents who were sounding early alarms about the S and L industry. Industry insiders were aware of significant S problems as early 1986 that they felt would require a bailout. This information was kept from the media until after Bush had won the 1988 elections.
Jeb Bush defaulted on a $4.56 million loan from Broward Federal Savings in Sunrise, Florida. After federal regulators closed the S and L, 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.
Neil Bush was the most widely targeted member of the Bush family by the press in the S and L scandal. Neil became director of Silverado Savings and Loan at the age of 30 in 1985. Three years later the institution was belly up at a cost of $1.6 billion to tax payers to bail out. -
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