As we plunge deeper into the current banking crisis and the government contemplates one of the biggest corporate welfare programs since forever, it may interest you to know that one of the presidential candidates has significant experience in dealing with financial institutions in crisis, and the corresponding taxpayer funded bailouts. He should at least, he helped put them there.
When federal regulators denied Lincoln's request for exemption from the 10 percent investment rule and began to probe its questionable dealings, Mr. Keating called in the big guns. Edwin Gray, Mr. Wall's predecessor, says he was pressured in 1987 by Sens. Dennis DeConcini, D-Ariz., John McCain, R-Ariz., Alan Cranston, D-Calif., and John Glenn, D-Ohio, to look favorably on Lincoln's request. Seven days later, they were joined by Sen. Don Riegle, D-Mich., and allegedly badgered federal bank examiners to go easy on the S&L. That is precisely what happened on Mr. Wall's watch.
The "Keating Five" are now targets of two federal investigations to determine whether the $1.3 million they received from Mr. Keating, his friends and associates constituted payment for services rendered. Although the senators deny any wrongdoing, Mr. Keating was more candid during an April press conference. Asked if he had bought influence with these contributions, he replied: "I certainly hope so." Aiken Standard, November 29, 1989
How stupid are we? Last year Fannie and Freddie CICs (Crooks In Charge) made over 34 million dollars and were too stupid to put the brakes on the practice of buying up of loans made to people who can't afford to pay them back. They are supposed to be experts, are they not?
I suppose in this Boomer world of ours, the folks in charge of overseeing the CICs didn't want to risk damaging their self esteem - so they let them keep their trophies.