2008 McCain’s Corruption Already Cost You Over 200 Billion Dollars, Taxpayer
posted by August 21 at 17:00 PMon
Here are the minimal facts you should know about McCain’s shady history with the financial services:
1. As early as 1985 the Federal Home Loan Lending Board (FHLLB) became concerned that shoddy lending practices at private Saving & Loans were putting the governmental insurance funds (like FDIC), and in turn the US taxpayers, at tremendous financial risk.
2. Edwin Gray, the head of the FHLLB, tried to curtail this reckless lending by putting in very modest restrictions.
3. The Lincoln Savings and Loan Association was under investigation in 1986 for being one of most reckless federally insured lenders, blatantly ignoring the new restrictions and hiding the loss of hundreds of millions of federally insured dollars.
4. Charles Keating, the head of the Lincoln Savings and Loan Association, began to use campaign donations to derail the investigation of his failing lending institution, and prevent its takeover by the government for insolvency and reckless use of federally insured funds.
5. The campaign contributions started to work. Five bought-and-paid-for Senators, including Senator McCain, met with Edwin Gray in 1987 to pressure him to leave the Lincoln Saving and Loan Association alone. During this meeting, when it became clear that some of the other Senators were willing to be explicit about the goal of the meeting (“To be blunt, you should charge them or get off their backs,”) rather than circumspect, McCain stormed off to maintain the patina of ethical conduct.
6. When Edwin Gray refused to play along, and proceeded with the investigation and process to seize the remaining assets Lincoln Savings and Loan Association, he was replaced by a new head of the FHLLB—M. Danny Wall. Wall immediately dropped this investigation, and many others.
7. Lincoln Savings and Loans stayed in business, and even grew the value of the assets under its control, until 1989 when it promptly imploded, requiring a FDIC bailout to its depositors. Before the FDIC bailout, thousands of people lost their entire life savings.
Under Wall’s lax oversight, many other similar Savings and Loans also went uninvestigated, unregulated and resultant also imploded. About sixteen hundred lending institutions failed, thanks to this lax regulatory environment.
8. The General Accounting Office (GAO) calculated this crisis cost the US taxpayer $124.6 billion from 1986 to 1996 in support to the FDIC, to keep it solvent during all these payouts to failing institutions. That’s over $200 billion in current-day dollars.
McCain is far deeper in the pit of taxpayer-fuel orgies of private financial irresponsibility.