The Keating 5
*John McCain’s Skeleton Closet
##The Keating 5
The Keating 5
The Keating 5
The Keating 5
The Keating 5
Obama Says McCain’s Keating Five Connection Is Not Off Limits
The above come from different viewpoints…One in fact is Attorney Mark Levin, from NRO
*Mr. Skeleton Closet…Seems to have an agenda.
If you choose to do so…Read all…and notice this part:
##Reluctant participant
Despite his history with Keating, McCain was hesitant about intervening. At that point, he had been in the Senate only three months. DeConcini wanted McCain to fly to San Francisco with him and talk to the regulators. McCain refused.
Keating would not be dissuaded.
On March 24 at 9:30 a.m., Keating went to DeConcini’s office and asked him if the meeting with the regulators was on. DeConcini told Keating that McCain was nervous.
“McCain’s a wimp,” Keating replied, according to the book Trust Me, by Michael Binstein and Charles Bowden. “We’ll go talk to him.”
Keating had other business on Capitol Hill and did not reach McCain’s office until 1:30. A DeConcini staffer already had told McCain about the “wimp” insult.
When he arrived, Keating presented McCain with a laundry list of demands for the regulators.
McCain told Keating that he would attend the meeting and find out whether Keating was getting treated fairly but that was all.
The first meeting, on April 2, 1987, in DeConcini’s office, included Ed Gray, chairman of the Federal Home Loan Bank Board, as well as four senators: DeConcini, McCain, Alan Cranston, D-Calif., and John Glenn, D-Ohio.
(Years later, McCain recalled that DeConcini started the meeting with a reference to “our friend at Lincoln.” McCain characterized it as “an unfortunate choice of words, which Gray would remember and repeat publicly many times.”)
For Keating, the meeting was a bust. Gray told the senators that as head of the loan board, he worried about the big picture. He didn’t have any specific information about Lincoln. Bank regulators in San Francisco would be versed in that, not him. Gray offered to set up a meeting between the senators and the San Francisco regulators.
The second meeting was April 9. The same four senators attended, along with Sen. Don Riegle, D-Mich. Also at the meeting were William Black, then deputy director of the Federal Savings and Loan Insurance Corp., James Cirona, president of the Federal Home Loan Bank of San Francisco, and Michael Patriarca, director of agency functions at the FSLIC.
In an interview with The Republic, Black said the meeting was a show of force by Keating, who wanted the senators to pressure the regulators into dropping their case against Lincoln. The thrift was in trouble for violating “direct investment” rules, which prohibited S&Ls from taking large ownership positions in various ventures.
“The Senate is a really small club, like the cliche goes,” Black said. “And you really did have one-twentieth of the Senate in one room, called by one guy, who was the biggest crook in the S&L debacle.”
Black said the senators could have accomplished their goal “if they had simply had us show up and see this incredible room and said, ‘Hi. Charles Keating asked us to meet with you. ‘Bye.'”
McCain previously had refused DeConcini’s request to meet with the Lincoln auditors themselves. In Worth the Fighting For, McCain wrote that he remained “a little troubled” at the prospect, “but since the chairman of the bank board didn’t seem to have a problem with the idea, maybe a discussion with the regulators wouldn’t be as problematic as I had earlier thought.”
McCain concedes that he failed to sense that Gray and the thrift examiners felt threatened by the senators’ meddling.
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