What about "Keating 5 Victims For Truth" ?

[Hassin Bin Sober]

I wonder how hard it would be to find some folks who lost their life savings while McCain and his cohorts held off the bank regulators for two years?

[TheCoxwain]

1. BRILLIANT >>>>

Make a series of Devastating Ads

[ProgressiveEconomist]

2. K&R. Best post of the YEAR, IMO.

But bear in mind that all (Edit: MOST--see post #6 below) S&L deposits under a certain amount were insured by the FDIC. I'm not sure what happened to depositors who had more than that at risk.

Also, the Resolution Trust Company, which took over and liquidated FDIC-insured institutions' mortgage portfolios, may have dealt roughly with homeowners who were delinquent or went into foreclosure. Many thousands may have lost their homes to foreclosure because they had to deal with the RTC rather than a local banker who might have arranged mortgage adjustment.

In any case, the de-regulation that led to the S&Ls' speculation and ultimate failure, and John McCain's intercession with regulators to weaken enforcement of even those weak rules, now are fair game.

Start your research with the excellent Kos diary at http://www.dailykos.com/storyonly/2008/9/21/9322/74248/245/602838 .

[Hassin Bin Sober]

7. Thanks! Little ole me?

I would think it could STILL be as effective even if they only found people that were "bailed out." Heck, there are probably people on their second go-round in the FDIC system.

[ProgressiveEconomist]

18. Kick!

[ProfessorPlum]

16. I agree this is a brilliant idea

but I thought the deal with the S&L bailout was that investors were not covered by the FDIC. The howl of the damage was so loud, though, that the gov. decided to bail those people out anyway, even though it didn't have to. Wasn't that the deal?

Sorry for the ignorance.

[Window]

3. I'd gladly throw in some money to see that.

:kick:

[Window]

4. Tell Move-On to get on it.

[1776Forever]

5. Whoaaaa That is an Awesome idea! Hope someone sees this & will do it!

I am sure there are a lot of terrible stories out there about this!

:headbang:

[ProgressiveEconomist]

6. Here you go: "More than 21,000 mostly elderly investors lost their life savings" at Keating's

bank, due to apparent fraud that induced many to switch to non-FDIC-insured certificates. Some of those 21,000 who were NOT elderly in 1989 must still be around.

From http://en.wikipedia.org/wiki/Keating_Five :

"Lincoln stayed in business; from mid-1987 to April 1989, its assets grew from $3.91 billion to $5.46 billion. <6> During this time, the parent American Continental Corporation was desperate for cash inflow to make up for losses in real estate purchases and projects. <17> Lincoln's branch managers and tellers convinced customers to replace their federally-insured certificates of deposit with higher-yielding bond certificates of American Continental; the customers later said they were never properly informed that the bonds were uninsured and very risky given the state of American Continental's finances. <17> Indeed the regulators had already adjudged the bonds to have no solvent backing. <12> Federal Deposit Insurance Corporation chair L. William Seidman would later write that Lincoln push to get depositors to switch was "one of the most heartless and cruel frauds in modern memory." <12> American Continental went bankrupt in April 1989, and Lincoln was seized by the FHLBB on April 14, 1989. <4>

More than 21,000 mostly elderly investors lost their life savings. This total came to about $285 million. The federal government was liable for $2 billion to cover Lincoln's losses when it seized the institution. <17>"

[electron_blue]

8. kick. This next week should be about Keating 5 & McCain

[ProgressiveEconomist]

9. Wouldn't it be GREAT if Obama used the '21,000 lost life-savings' factoid TOMORROW,

in a question to McCain about what he learned from the last big banking crisis?

"Senator McCain, partly because you asked regulators to weaken already "deregulated" bank speculation rules for your big contributor Charles Keating, more than 20,000 depositors at one Arizona bank lost their life savings....

[mdavies013]

10. Has anyone contributed this idea to Move On PAC?

[complain jane]

11. Let's keep this going

[ProgressiveEconomist]

12. Is there video of Keating's criminal trial? "Many of the elderly investors who had purchased

ACC junk bonds attended the trial, and yelled angrily at Keating both in the courtroom and as he was being escorted to and from trial. One spectator managed to punch Keating in the arm."

Maybe at the Museum of Broadcaasting in NYC or some other archive? Or at least local or national print news stories, with photos?

And what are the exact legal citations of the criminal and civil actions against Keating? That would be the place to look for class-action victim lists and names of witnesses who testified against Keating.

From http://law.jrank.org/pages/3499/Charles-Keating-Trials-1991-99-Litigation-Abounds.html :

"Charles Keating Trials: 1991-99 -- Litigation Abounds

A myriad of civil litigation and criminal prosecutions followed the collapse of ACC and Lincoln S&L. Civil and criminal trials, followed by countless appeals, went on for nearly a decade. Civil class action suits were filed by the purchasers of ACC bonds against Keating; other officers and directors of ACC; and the banks, lawyers, and accountants who shielded them from regulatory scrutiny for so long. Federal and state criminal charges were filed against Keating and others. There were regulatory actions by the OTS against the same banks, lawyers, and accountants being sued in civil court. In March 1992, the OTS shocked the legal world when it froze the assets of the huge, 400-lawyer law firm Kaye, Scholer, Fierman, Hays & Handler, which had represented Keating. After bringing the firm to its knees, the OTS imposed a $41 million settlement on it.

The only criminal case against Keating occurred when the state of California prosecuted him for 18 separate counts of securities fraud in connection with the sale of ACC junk bonds under the misrepresentation that they were federally insured. This trial took place in Los Angeles before Judge Lance A. Ito. The chief defense lawyer was Stephen C. Neal and the prosecutor was Deputy District Attorney William Hodgman.

The trial began on November 18, 1991. Many of the elderly investors who had purchased ACC junk bonds attended the trial, and yelled angrily at Keating both in the courtroom and as he was being escorted to and from trial. One spectator managed to punch Keating in the arm."

[mzmolly]

13. EXCELLENT idea. We could have family members partake as well?

:shrug:

[AwakeAtLast]

14. Great idea and KICK!

:kick:

:thumbsup:

[electron_blue]

15. Surely someone has at least thought of it.

I mean - how could they not? It's just aching to be used.

[ProgressiveEconomist]

17. Kick!