(some of this from others' posts)
"In 1989, the Senate Ethics Committee found that McCain exercised poor judgment when he interfered with the Federal Home Loan Bank Board (FHLBB) in their investigation of failed Lincoln Savings and Loan Association and its chairman, Charles Keating.
In 1987, McCain and four other Senators pressured the federal regulators to ease up on the bank. In 1989, the FHLBB seized control of Lincoln and more than 21,000 investors, mostly elderly, lost their life savings. When it seized Lincoln, the federal government also had to assume $2 billion in debt. It is not clear how much, if any, of these losses could have been avoided if the Senators had not pressured regulators.
Not only did McCain get over $100,000 in campaign contributions from Keating, but his wife and father-in-law invested in a Keating business, and McCain and his family took nine trips at Keating’s expense, including vacations to Keating’s Bahamas retreat. Unlike McCain and a fellow tarnished hero, former astronaut John Glenn (D-OH), the other members of the Keating Five had the decency not to run again.
Charles Keating helped McCain’s father-in-law buy McCain his seat in congress in 1982. Keating and Cindy McCain were partners in a shopping mall venture which McCain only cashed out (at a million dollar profit) when Keating was jailed in the late 1990s. (3) Keating was obsessed with obliterating pornography while he was using his corporation’s money for wild drunken parties, at least one of which McCain attended.
McCain hid from Congress that he had taken 9 trips on Keating’s jet. These included three vacations at Keating’s mansion on Cat Cay in the Bahamas that McCain and his wife shared with Charlie Keating and his family. McCain got more money than any of the other four politicians at the heart of the Keating scandal. When asked if he was buying or influencing McCain with his gifts and money, Keating replied, “I want to say in the most forceful way I can, I certainly hope so!”
Charlie Keating was running a series of shell corporations to hide cash he moved illegally from Lincoln Savings and Loan. Lincoln became the largest S & L to collapse and cost US taxpayers thousands of millions of dollars for a bail out. When Federal bank regulators, led by Ed Gray, tried to limit Keating’s worst excesses, Keating sent a letter to McCain describing the bank board (FHLBB) as a police state under a mad dog’s leadership.
And then McCain had one of his melt downs.
This was the key moment in McCain’s Keating Five scandal and it occurred at March 19 1987.
Keating asked McCain to pressure bank auditors not to enforce the law against Lincoln S&L. McCain told Keating he was uncomfortable strong arming the nation’s financial regulators. Keating taunted him, “McCain’s a wimp.” At 1:30, in his senate office, McCain exploded into fury, “One thing I’m not is a coward.” McCain screamed at Keating that he hadn’t lived in a box for five years to have his courage questioned. McCain’s aides were very surprised by McCain’s tantrum and even Keating begged him to calm down.
McCain didn’t back off. He shouted that he knew it was not appropriate for him to negotiate on Keating’s behalf with regulators who were looking into the illegal activities at Lincoln Savings and Loan. Keating told McCain that he should not bother going to the meeting. McCain was still mad and replied, “No, I’m going to that meeting.”
Later that day, Keating boasted that he “knew how to get McCain’s attention.”
McCain met Ed Gray on April 2, 1987. Against all protocol, McCain didn’t allow Gray to bring any staff or attorneys to the meeting and also excluded his own aides. He later said this was because he wanted to be able to deny everything. McCain tried to force Gray to ignore a banking regulation that affected Keating’s Lincoln S&L. McCain kept referring to Keating as, “my friend.”
Seven days later, bank regulators were summoned to the Senate for an unusual late night meeting. McCain wanted the auditors to let Lincoln continue making real estate loans without carrying out credit checks, a clear violation of the law. This is also the practice that has led to the current US economic crisis. When asked by his aides about the meeting, McCain whistled through his teeth rather than answer their questions.
Here it is in a nut shell:
In 1987, McCain tried to force bank regulators to ignore the law for his friend and benefactor, Charlie Keating. McCain knew this was improper but plunged recklessly into the meetings after Keating taunted him for being a coward.
McCain almost destroyed his career by accepting bribes and letting mere words goad him into knowingly breaking the law.
If he was President, what else might McCain’s temper destroy?
(1)
http://www.slate.com/id/1004633 /
(2) Extracted from Trust Me: Charles Keating and the Missing Billions by Michael Binstein and Charles Bowden, Random House 1993
http://tinyurl.com/3r25xs (3)
http://tinyurl.com/42vpx3 "In case anyone wants to cross check my report with the Trust Me book, here are my rough notes with page references. There is no index in the edition I own and these notes were gathered over a period of some weeks of reading:
226-227 Keating first met McCain at a navy league dinner in 1981. McCain made his first run for the house in 1982 and McCain called Keating to ask for money for his campaign. Note McCain called Keating and NOT vice versa. Keating sent substantial (for the time period) money in McCain's direction and arranged fund raisers for McCain in 1984, 85 and 86. McCain and Keating took vacations together with their families at Cat Cay in the Bahamas, Keating's mansion house retreat on the islands. During this period, McCain and Keating meet up every few months.
Keating's parties, obsession with porn and weird religious beliefs are referenced throughout the book. The party which McCain attended is described early on in the book but I don't have the exact page on my notes. I can find it if anyone really needs it. There is presented some evidence linking Keating to the assassination attempt on Larry Flynt which left him without the use of his legs, This might explain Flynt's visceral dislike for McCain.
227 - McCain got $110,000 from Keating. *Other reports put this at slightly more and so this may be a rounded figure.
252 - July 31 1986 Keating sends a letter to McCain that the FHLBB were turned loose in a police state under Ed Gray, a mad dog.
276 - February 18 1987 Keating met McCain in DC
281 - Thursday March 19 1987 Keating goes to McCain's office to discuss Ed Gray and asks McCain to fly to San Fransisco to confront Lincoln's auditors. McCain was uncomfortable about meeting the auditors. McCain asked a Keating aide, "is this for Charlie? Is he going bankrupt?" The aide said yes. Keating said to Senator DeConcini that McCain was a wimp because he sensed McCain was hesitant on meeting the bank board officials. Aides repeated the "wimp" comment to McCain.
282 - At 1.30 on Thursday March 19 1987, Keating was confronted by McCain at McCain's senate office. McCain was furious, "One thing I am not is a coward." McCain also said he didn't live in a box for five years to have Keating question his courage. McCain's aides were very surprised by his outburst. Keating begged McCain to calm down. McCain said he knew it was not appropriate for him to negotiate on Keating's behalf with regulators who were looking into illegal activities at Lincoln Savings and Loan. Keating said, "Hey John. I don't want you to go to the meeting. I'm sorry we even brought it up." Keating then prepared to leave. McCain replied, "No, I'm going to that meeting." Later that day, Keating boasts that he knew how to get McCain's attention.
284 - Evening of April 2 1987 - Ed Gray of the FHLBB meets with McCain and three other members of the Keating 5. Against protocol, Gray is not allowed to bring staff or staff attorneys. McCain barred his senate aides from the meeting. McCain wanted to be able to deny what happened at the meeting. McCain and the others refer to Keating as our friend. McCain et al. then demanded that Gray withdraw a bank regulation that was limiting Lincoln's investments.
288 - 289 April 9 1987 6pm, Bank regulators are called to a meeting with McCain and the four other Senators at their Senate offices. Bank official Bill Black took copious and exact notes. McCain said he was attending to help his constituents although he was an Arizona Senator and Lincoln S&L was a California company. Lincoln were making loans without checking any credit reports first.
290 - Michael Patriacha, head of the SF regional bank regulators told McCain and the others that Lincoln were violating the law and regulations. Later, McCain whistled through his teeth rather than telling his staff any details about the meeting.
362 - April 1989. Keating at a press conference answered the question of whether he was trying to influence or buy McCain's support with gifts and money states: "I want to say in the most forceful way I can, I certainly hope so."
An interesting aside from page 393. Carl Linder (another multi-billionaire) founded AFC with Keating. Linder is a major major donor to McCain today. Linder's son Keith runs Chiquita brands which admits giving 1.7 million dollars to AUC, a paramilitary group in Colombia that are listed as terrorists by the Bush regime.
Details:
http://www.mediabistro.com/bbs/cache/t39875_1.asp "
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