The Keating 5 was a Political scandal that took place in the late 1980's and early 1990's. It is called the Keating 5 because it involved five different Senators. John Glenn (Ohio), Dennis De Concini (Arizona), John McCain (Arizona), Alan Cranston (California), and Don Riegle (Michigan). This scandal took place after the deregulation of the banking industry in the 1980's. At which time the savings and loan banks were making many risky investments, and the Federal Home Loan Bank Board tried to stop them. The Regan administration did not, however, get involved in what was going on due to it's belief against government interference with business.
Check out this youtube video which portrays the Keating 5 scandal in about two minutes...http://www.youtube.com/watch?v=HAzDEbVFcg8 . I found this to be the quickest and most informative clip out there summarizing the event s that took place during this highly controversial, and highly publicized political scandal. Charles H. Keating was a millionaire and Chairman to the Lincoln Savings and Loan Association of Irvine, California. He was arrested, and came to portray the Savings and Loan Scandal of the 1990's. What happened specifically is that the five Senators named and shown above, intervened and tried to protect Charles H. Keating from Federal regulators. Edwin J. Gray affirmed in court that they were pressured by the five Senators to back off of Mr. Keating. The problem was that Charles H. Keating and his associates gave approximately $1.4 million dollars in total to the five Senators as "campaign contributions." This was seen as a bribe, and after a few investigations, Charles Keating was put in jail, and the five Senators were found to have acted dishonestly.
Interestingly, of the five Senators involved in the Keating 5, only John McCain remains in the Senate.
No comments:
Post a Comment