Will The Keating Five Scandal Come Back To Haunt McCain?

Last night on MSNBC's Countdown With Keith Olbermann, Newsweek's Jonathan Alter wondered how John McCain is "getting a free ride" in this economic crisis after having been at the center of Keating Five, the last big banking scandal. He also notes that instead of coming out of that mess in favor of more regulation, McCain "did nothing to try to prevent another Savings and Loan crisis. He was missing in action." Watch:

The Wall Street Journal touches on the Keating Five scandal and suggests that McCain may have to answer to it after all:

The latest salvo came on Monday when an Obama spokesman, Bill Burton, invoked Charles Keating in hitting back at the McCain campaign for suggesting that Barack Obama had received a pass from the press. Burton said John McCain had been little scrutiny of his association to Keating despite being "centrally involved" in "the last major financial regulatory crisis, resulting in a huge bailout."

Asked by reporters if the Obama campaign planned to make Keating an issue, senior strategist Robert Gibbs was coy: "If we're going to talk about what's fair game in terms of people in a relationship, I don't see how... that wouldn't be important."

Chicago Mayor Richard Daley, who was labeled the leader of a "corrupt" machine in a McCain campaign ad yesterday, suggests he's all for it.

"You had the Keating Five. We had the biggest scandal in America called savings and loan. The biggest scandal, Daley told the Chicago Sun-Times. "So, if people start throwing dirt and mud, remember it comes back and hits you right in the face ... It would be a great ad. Remember: People lost their life savings, their own homes for a guy named Keating out of Arizona."

Comments

[demfriend]

Keith Olberman has some of the most knowledgable/insightful guests on his show which is why I among the many watch his show. The truth is where he strives to go daily and Jonathan has been a guy with op-eds as well as blog articles which also heads that direction when the majority of the MSM has been AWOL. Now we can add Rachel to the mix and there is a begining of respect for the crap going on and accurate information NOW after this break down has taken years to get to this low. The administration and GOP has been manipulating the wall street as well as main street all the while luing to us. McCain's son quit his job at a S&L ala a Keating type scandal but that's something he probably learned on daddy's knee. That no matter how much we as the "people" referred to in the Constitution and Bill of Rights, hope and pray we will not be as well as our decendants will not be saddled with massive debts to China/Japan/OPEC etc as a result of what Bush and Co have done to us, we can expect it will be so. Where is the protections and the values put into the current mess for us and can we counton anything being done right? Nope but Obama might put things back as much as possible and McCain will give the rest of the economy to his lobbyists.

[Bluesue]

The Arizona Republic did a multi-part profile of McCain. One part summarizes the Keating Five and another goes into how McCain attempted to overcame the scandal.

It’s one of the most detailed accounts I’ve read - it quotes notes and conversations,

Charlie Keating always took care of his friends, especially those in politics. McCain was no exception.

In 1982, during McCain's first run for the House, Keating held a fund-raiser for him, collecting more than $11,000 from 40 employees of American Continental Corp. McCain would spend more than $550,000 to win the primary and the general election.

In 1983, as McCain contemplated his House re-election, Keating hosted a $1,000-a-plate dinner for him, even though McCain had no serious competition. When McCain pushed for the Senate in 1986, Keating was there with more than $50,000.

By 1987, McCain had received about $112,000 in political contributions from Keating and his associates.

McCain also had carried a little water for Keating in Washington. While in the House, McCain, along with a majority of representatives, co-sponsored a resolution to delay new regulations designed to curb risky investments by thrifts such as Lincoln.

http://www.azcentral.com/news/specials/mccain/articles/0301mccainbio-chapter7.html

[MadFae]

Considering that the GOP/the McCain campaign has dragged the mouldering corpse of the Rezko affair out of it's grave, I don't see how the Keating 5 can be ignored, especially in today's circumstances.

[Momma4Obama]

Rezko has been and will continue to be a straw-man for republicans to try and steer the conversation off mcCain's infinitely more scurrilous deeds as a Senator.
He has long said that he welcomes a though screen of his past senate Record, yet won't allow his Health or Military Records be disclosed, both of which are of the public's interest if we are to make an informed decision to choose a man who would very well die in office, leaving us with Bush-in-a-skirt Palin.

I am a woman and I am ashamed that Palin is seen by women as someone who is for them when she doesn't even support a woman's right to equal pay for equal work!!

[grizhead63]

The Good Life

“After McCain's election to the House in 1982, he and his family made at least nine trips at Keating's expense, three of which were to Keating's Bahamas retreat. McCain did not disclose the trips (as he was required to under House rules) until the scandal broke in 1989. At that point, he paid Keating $13,433 for the flights.

And in April 1986, one year before the meeting with the regulators, McCain's wife, Cindy, and her father invested $359,100 in a Keating strip mall.” Slate.comm Feb 18, 2000)

If it smells like a skunk, and acts like a skunk, well you know the rest.

[vinny]

interesting... maybe that is what O's new Bahama ad is all about??? maybe there will be a connect soon...

[jah2008]

I thought this article in the Economist was a great read.

"Richard Milhous McCain:
Americans cannot escape from the shadow of Tricky Dick"

http://www.economist.com/opinion/displaystory.cfm?story_id=12260881

[cbates]

The media has a hold on this link to McMock and Barack only need sit back and watch and or encourage more reporting. If the MSM doesn't pick it up he, Barack, should let it rip indirectly linking McMock.

[WendyKa]

Good for the Obama campaign. If you are not attacking you are losing. That simple. They need to press this hard. They would not hesitate to put something like out there if BO were involved in something like this. McCain is already trying to associate BO with Frank L with Fannie May ( right company?) Anyway, BO met him once for a few minutes. Nothing close to advising him. McCain said Obama was "right in the middle" of all the corruption.

Get him!

[McChimp]

this will be the October surprise

O is smart to save his heavy ar tillery for later

Obama/Biden 08 - The REAL Straight Talk Express

[McChimp]

Don't worry Obamamericans, the Keating 5 card will be the October surprise, after the GOP unleashes their surprise

Don't use your torpedoes when your enemy's ship is already sinking

Obama/Biden 08 - The REAL Straight Talk Express

[AurigaRa]

and the baby thing aint over the the Palins either
Just watch.

[ProudLiberalDan]

That's a side show.

Keep the focus on McCain's unsuitability for the job and his say anything, no integrity, desperate campaign to be President.

[novowel4me]

There is a clinical diagnosis in psychological testing that goes something like "Does not profit from experience". What is the value of "experience" if one does not learn anything from it? This is the factor that mitigates the "experience" issue and differentiates McCain from Obama.

[helpmeunderstand]

This is not the Keating Five, this is the Keating 700 Billion, and although not the Single Point of Accountability, McCain is a common denominatior

[sueno]

McCain has already proved that he has failed at economics!
He got off on the Keating 5 charges. We should not expect
different from him-

[Obamlatina]

That's right! We need to spread the word to all those McBush folks about Keating 5 and all the lies that McBush is spewing out of his mouth! McBush is an insult to Americans. There are more POWs out there that have more dignity than McBush.

[YankeeYahoo]

The Obama camp needs to stop being so "nice". There is plenty of kindling here to start a fire .... use it. Fight back. Keating 5, deregulations, etc. Compare him to Nelson E. Aldrich (of the Aldrich Plan) and the Panic of 1907.
Remind the nation of his history ... other then him (Songbird) touting his POW status.

[grizhead63]

SOPRANO RULES?

I was doing some research a couple of weeks ago and found an old article re the Keating Five on a conservative website. They were saying that during the savings and loan disaster there were rumors on the Hill that McCain had ties to orga nize d cri me.

At that time I thought to myself the article was ridiculous and that the website was just a bunch of righ twin g knuts. I keep thinking about it given the Wall Street disaster and am beginning to wonder who is really running this administration and Wall Street now. This bailout is nothing more than extor tion and blac kma il of middle america so what IS going on here? I mean, its apparent a lot of these people are for s ale to the highest bi dder.

[Aleka4]

The problem with "fires" is they require media co-operation. And media goes with tabloid ratings.

As a general rule, anything McWeak Whiner does is not kindling in any way because he is for the most part a really old boring dude that nobody wants to watch. 0bama, on the other hand, is a young, hip, bIack dude who most of the old boring people think is "uppity" so EVERYTHING he does, even piss or scratch his arse, is fodder for speculation and media obsession.

This is why Mcboob gets a free pass all the time. The media are far too busy wakking off over whatever 0bama had for breakfast to care WHAT McWhiner does. To them, it is abour RATINGS and they could care less about it being a presidential race where things like McBoobs past actions are relevant.

[melelo]

Aleka emeru,.... you nailed it. right on the head:

[Shadow08]

When Obama is "nice" as you put it, it shows a stark contrast between "Nice" and bitter, or antagonistic, or belligerent or frustration, or anger, or being out of control or too swept up in the moment to make clear rational decisions.

Obama promised America he would bring in a new kind of politics, this is what he meant. It may not work for you, but I have money that says it means a lot to millions of Americans who are tired of the republican style of scortched earth, last man standing poltics.

Plus, I have noticed that while Obama is being nice, it's driving John crazy because Obama refuses to play John games. John would love it if Barack stoops to his level, but Barack doesn't, and it's working.

[Maggie0507]

C'mon Obama advisors - make this an issue. If the repubs can turn Obama's words around to make it sound like he wanted sex ed for kindergartners, then use this and make him answer some very difficult questions.

[grizhead63]

Obama should start using the highly successful tactics the Israelis used before they softened up: Someone attacks you, double or triple down on them. It would be de vasta ting.

[asta1968]

I agree w/ Maggie:
The McCain Camp whines about being questioned at every turn. If John McCain hadn't morphed into someone unrecognizable to people who've been loyal to him for years, he would be running away with this election. He has completely 'sold out' to the 'political machine' and it began when he allowed GWB to walk on him like trash in the 2000 primary. Even if this were not the case, you'd better believe that McCain would be crucifing Obama right now if he'd been named in the Keating 5 scandal.

Also on Palin, If it were Barrack's pregnant 17 year old daughter, with a boyfriend claiming to be a 'gangsta' (to offset redneck), would this historical race even be happening? I have known "hockey moms", and I still can't thnk of one I'd vote for.

[Ramirez]

The campaign should thread carefully.

The top four contributors to the Obama campaign, in order, are:

Goldman Sachs
Univ of California
Citigroup Inc
JPMorgan Chase & Co.

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

[SherryIndianapolis]

Keep trying, baby.

You must be sweating up a storm right now!!

Obama/Biden '08

[ErnestineBass]

Rami even sweats while darning his socks.

[chitown8]

Theses are employees. Also JP Morgan Chase has an office in Chicago where at least 75K are on staff! Check how many unemployed folks he has.

[Ramirez]

"Employees", right. These are bundled contributions. If Mccain got that kind of money there would be hissyfits.

[jiml1956]

Thanks for the link to opensecrets. Guess you didn't read the following -

McCain's list includes at least 69 individuals who, according to his campaign, have raised a total of at least $11.4 million for his campaign. That makes the struggling investment industry his top source of bundlers. (Bundlers are those wealthy individuals who hit up their coworkers, family and friends to raise hundreds of thousands of dollars, in addition to any contributions from their own pockets.) In the second spot is the real estate industry, where at least 55 individuals have delivered a total of $9.5 million or more to McCain. Overall, bundlers in the finance, insurance and real estate sector have hauled in at least $30 million for the Republican candidate -- far more than any other sector.

http://www.opensecrets.org/news/2008/09/bundlers-for-mccain-obama-are.html

[Ramirez]

And continued from the same article (CAPS mine):
***

"Obama's list gives the appearance that he has not leaned so heavily on bundlers working on Wall Street, although since his campaign has IGNORED REPEATED REQUESTS from the Center for Responsive Politics and other watchdog groups to disclose his bundlers' employers and occupations, these FOGIRES ARE PROBABLY UNDERCOUNTS. The securities and investment industry is Obama's second-largest source of bundlers, after lawyers, and at least 56 individuals have raised at least $8.9 MILLION for his campaign. "

[SanityNowPlease]

"...the organizations themselves did not contribute..."

you loozer. these are not facts, they are rose colored and twisted.

vote for mc cain already and then chute yourself.

[grizhead63]

Good try. The campaign should take contributions from anyone who wants to give. This is war man and we aren't playing by your rules anymore. Heck ramirez, you should signup too.

[dRwOOD]

I believe everyone has been waiting on this shoe to drop - as usual the Obama campaign has perfect timing, absolutely perfect. The dumbed down voter has now heard enough of this whole"financial crisis" to be able to put 2 & 2 together. The only problem it that the MSM may ignore until and Ad is created, thus forcing the issue and of coarse fodder for the whole "negative" ad conversation - but the pros definetely outweigh the cons ( pun by happenstance)