"...the largest and costliest
venture in public misfeasance, malfeasance and larceny of all time."
----John Kenneth Galbraith
Image
- Fiscal
conservatism
- Balance
the budget
Realities
- Deregulation
of banking leads to a proliferation of Savings & Loan companies engaged
in banking activities
- Unregulated
S&Ls overextend loans and investments
- March 1985,
Ohio closes S&Ls with news that Cincinnati's Home State Savings Bank
was about to collapse
- Malfeasance
by Charles Keating's Lincoln Savings and Loan exposed
- Keating's
explicit financial connections to five U.S. Senators in both parties results
in termination of three careers and the rebuke of John Glenn and John McCain
by the Ethics Committee
- Neil Bush,
head of Silverado S&L and the son of the Vice President approved $100,000,000
in bad loans, subject to civil suits but costs paid by Republican fundraisers
- Exceptional
survivors among the S&Ls were those engaged in criminal activities,
including money laundering
- Total cost
estimated to exceede $160,000,000,000, the cost of three-quarters of were
paid by the U.S. taxpayer
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