McCain's "Keating 5" Scandal Involvement To Be Highlighted By Obama Campaign

Update 12:30pm Monday, October 6:
The Obama campaign has released the full video of "Keating Economics: John McCain and The Making of a Financial Crisis." Watch it below:

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The Obama campaign, in an effort to combat increasingly negative attacks by the McCain camp, is launching an aggressive, multi-pronged effort to highlight McCain's involvement in the "Keating 5" savings-and-loan scandal:

Sen. Barack Obama (D-Ill.) on Monday will launch a multimedia campaign to draw attention to the involvement of Sen. John McCain (R-Ariz.) in the "Keating Five" savings-and-loan scandal of 1989-91, which blemished McCain's public image and set him on his course as a self-styled reformer.

Pushing back against what it calls McCain's "guilt-by-association" tactics, the Obama campaign is e-mailing millions of supporters a link to a website, KeatingEconomics.com, which will have a 13-minute documentary on the scandal beginning at noon Eastern time on Monday. The overnight e-mails urge recipients to pass the link on to friends.

The Obama campaign, including its surrogates appearing on radio and television, will argue that the deregulatory fervor that caused massive, cascading savings-and-loan collapses in the late '80s was pursued by McCain throughout his career, and helped cause the current credit crisis.

The Obama camp released this 30-second trailer for a 13-minute video highlighting McCain's connection to the scandal that will be released in full tomorrow at 12pm EST on the website keatingeconomics.com.

A former federal regulator with intimate knowledge of the savings-and-loan scandal recently told HuffPost's Seth Colter Walls that McCain is repeating mistakes from the Keating era:

William Black -- a deputy director of the Federal Savings and Loan Insurance Corporation during the "Keating Five" scandal that nearly ended McCain's political career -- says the Arizona Republican's chief errors at the time were underestimating the importance of regulation and relying too heavily on slanted advice from captains of industry.

"In the S&L crisis, he took his advice from the worst [kind of] criminal. Charles Keating is the person he went to for his policy advice," Black said. "Now, he certainly is getting advice from Phil Gramm, Carly Fiorina, Rick Davis -- the whole group of economic and top political advisers are lobbyist types. He just doesn't seem to get it, ever, that the advice is going to favor their clients. Even if they just stop being lobbyists, you can't just turn that off instantly. It's their mind state that develops. ... The biggest lesson is that, when you deregulate and de-supervise, you create an environment where control fraud emerges. You hyper-inflate bubbles; you get criminalization."

Click here for more information about the "Keating 5."

Comments

[autish]

The McCain/Palin are trying to use the guilt by association not to really question Obama's credentials, but to bring up race. There is deep seated angst about Obama's race and in a rational discussion, these get overridden by economy and other issues. However, if you start playing on people's fears, then it plays to the idea that Obama is untrustworthy. There is no direct way to counter this. The factual argument was never there. If there was, then wouldn't they have been asking for a congressional inquiry or an indictment of Obama? It's more about the feelings it evokes.

Obama's counterstrategy is brilliant. It ties people's immediate insecurities to his conduct. This is effective because it makes people more fearful of McCain.

I appreciate that this may not seem like it is high minded. However, there are only two approaches - those that work and those that don't. Anything else is an exercise in idealism and fantasy.

[DMcD]

Speaking of 'guilt by association' , McCain smilingly embrassed his former No.Vietnamese prison guard while 'blowing-off' the MIA families. See; www.vietnamveteransagainstjohnmccain.com for more details (Google if needed, E address is valid)

[goofy2]

I still don't like it. This stuff just suppresses voter turnout and enthusiasm, just the Republicans' forte. Obama's campaign can't win a campaign in the Republicans' briarpatch. McCain is plenty vulnerable on his positions and lack of a workable plan for Medical costs, the economy in general, and education. The main attempt must be to campaign on the issues. The honest press is acknowleging their desperation, best to not give them excuses for more mud.

[rockyb26]

Whether you like it or not, Obama's not going to just sit back and watch his opponent slander him. He has to fight back. Ask John Kerry how not fighting back worked for him.

[bygollymissmolly]

Excuse me, but if the Keating 5 isn't relevant to the issues of today, I don't know what is. It is history repeating itself and guess who's solidly in the middle.

[SwingVoter]

I posted a few days ago to embrace testicles because all punches from here on have one target only--maybe two.

[franklin opt]

Testicles make a swinging target, especially when the opponent wears boxer shorts.

[optech007]

I guess not all Keating 5 members are created equal:

"Former Sen. John Glenn spent part of his Sunday afternoon stumping for Sen. Barack Obama’s space agenda." “I’m looking forward to working very closely with Barack Obama after he’s president,” said Glenn.

Glenn, by the way, was part of the Keating 5 scandal.

[mpaxton1]

Glenn isn't running for president and he isn't throwing stones.

[Graywolf48]

Glenn, by the way, is not currently running for President.

[gbht12]

Thanks for bringing this to light finally.
Senator McCain might be able to fool older voters with his POW card, but he has always been corrupt and his judgement of picking Palin does it for me.

He is insulting people by thinking that he can turn this election by ignoring people losing jobs, homes. While he has 9 Homes and 13 cars, he is the elitist and he sickens me to the core.

I am going to pass this on to everyone I know and then I am calling my parents, and grandparents in FLORIDA

[bygollymissmolly]

Don't forget to tell them that McCain plans to finance his "health care plan" (such as it is) by cutting Medicare and Medicaid. That should go over well with your parents and grandparents.

[Brillig]

"The fires of hell are frozen glaciers compared to my hatred for the American government. And I won't be buried under their damn flag. I'll be buried in Dawson. And when Alaska is an independent nation they can bring my bones home." [3]

This from the FOUNDER of the ALASKAN INDEPENDENCE PARTY of which TODD PALIN - Sarah Palin's HUSBAND, was a member up until she began running for public office in 2002.

Jeremiah Wright and William Ayres are like milk to this guy's whiskey!

Also JOE VOGLER the founder of the AIP was killed during a plastic explosives deal gone wrong?

WONDER what they were going to use the Plastic explosives for? Ideas, anyone??

[DebbieinPhx]

read a great blog recently, I can’t remember where I found it, but it went like this:

Obama to McCain, “If you don’t stop telling lies about me I’m going to be forced to tell the truth about you.”

Well, I think that day has come boys and girls, and not a moment too soon.
As the wise Joe Biden once said, “Past is Prologue.”
It’s time to move on, America.
Obama/Biden 08

[mickeysteib]

The political bickering is planned to distract from our thinking about capability to analyze and communicate, thinking about having this capability to analyze and communicate result in good judgment in choosing advisors and in coordinating the best ideas for America, not just the simplistic ideas. Lets think about how much poor judgment (Like Keating Five and the last eight years of agreeing with the administration on war and deregulation) costs Americans in resources and in life and limb. We need a president from the top of his class. We need to to have timely studies to come before our taking action, not impulsive decisions. Save planes by studying flight manuals. Save life and limb by studying intelligence reports. Save our economic strength with timely studies of deregulation, Keating Five type activities and regulation. Save our country with presidents from the top of their class who know how to bring these studies about without selling the influence to the special interest lobby group.

[gopSTEALSyourTAXmoney]

Hello Debbiein Phx,
That 'phrase' was part of a song by 'James Brown' from
the EARLY 70'S.

It was a lyrical 'political' lament inferring: "Don't Tell Lies About Me,
And I won't Tell The Truth On You'---------(the FBI and the U.S.Government
singling out African Americans for outrages racists propaganda-----the tail
end of the Civil Rights Movement to keep it squashed---but it couldn't
squash people's civil rights)!

[Belisarius]

This is a headline in the wall st. journal today:

McCain Plans Federal Health Cuts
Medicare, Medicaid Spending Would Be Reduced to Offset Proposed Tax Credit

Amazing. Mccain votes a trillion for a bank bail-out, and a trillion for nation building in Iraq before that. Then introduces cuts in medicare and medicaid to pay for an insurance scheme that already includes taxes on insurance benefits. And just as the boomers are retiring.

I'll bet that Pelosi and Reed are already lining up behind this latest repub initiative.

article: http://online.wsj.com/article/SB122315505846605217.html#articleTabs%3Darticle

[franklin opt]

There goes the senior vote, Senator McCain. Enjoy your government health care benefits!

[KennaP]

Negative style points awarded for the mini-documentary (need to be shorter, with definitive points emphasized), it's just good to see some offensive (this is obviously not B's strong point, but at least he's trying).

[lordball]

Finally the "October Surprise" has arrived. Kick his ass Obama. KICK HIS ASS.

[jcrush]

I think the October surprise is going to come out of Alaska.

"Dawggonnit !! Those prosecuting attorney's up there in Alaska are getting all mavericky and shakin' things up in my professional life, you betcha. I better not let them shake things up too much or one of those personal emails might fall out & I might just have to drop out of the race and go back to Wasilla dontcha know."

I think that McCain is involved in those dirty Alaskan politics with Stevenson and that's why they're covering things up as fast and hard as possible. I seriously think that this is going to be the October surprise.

[HOPE/CHANGE]

They don't need to go back that far back to find out where McCains head is, it's up the ass of Phil Gramm, his top economic advisor.

http://rawstory.com/news/2008/McCain_aides_worked_to_create_defend_0619.html

John McCain doesn't talk about the Enron loophole any more," reports Olbermann. "What changed? Since 2006, John McCain's top economic advisor has been former Texas Senator Phil Gramm, husband of the former CFTC head who then joined Enron."

"It was Graham who passed the Enron loophole ... with no hearings, no debate," Olberman emphasizes. "It was Graham who stopped Democrats from closing the Enron loophole. ... Graham lobbied Congress about commodity trading rules in 2006.

[AfroGoddess]

I wonder how many criminals today can get away with his "Bad Judgement" defense. Only the rich can afford that level of "naivete". Unfortunately the rest of us tend to have to pay for it.

[Changeizgood]

NOT THIS TIME!

Obama/Biden America's pride in democracy and smart strategy for security.

[zitlight73]

Right on. Keating Five should definitely be an ongoing issue in the light of what happened it the last few weeks. Now let's get some U.N. election inspectors to monitor our Nov elections especially in Ohio, Michigan and Florida. The Republicans stole the last two presidential elections I see no reason why they won't try to steal a third.

[jcrush]

I'm SOOO glad Barack didn't go opinionated and negative. Just leave it at a factual documentary like film. The repubs are so so incredibly negative and seem so petty and immature with their attacks. On one side of the screen McPalin are vomitting slurs and attacks and on the other side the Dow is at -729. They look like desperate fools. Obama gave a mini press conference today talking about the economy and the dow, McCain was in FL giving an old style nighttime barn-like meeting with republicans whooping and shouting in the background. McCain standing up there grinning weirdly and attacking Obama's character, getting excited by his own message, saying lies about Obama's past and intentions, like he was building some kind of case or building emotions for some kind of reactive group movement. To be honest with you, it kinda gave me chills and sent my mind thru images of Klan meetings and movies like Roots and Mississippi Burning. It looked so so bad. Honest. It made me sad for America. And you know what, it made me feel personally ashamed, and I'm not sure why.

[mpaxton1]

I understand. I also have noted deep feelings of shame because of the general public's lack of critical thinking. I found it obsurd that this country would allow an idiot and a band of evil crooks to run this country over someone worthy of a nobel peace prize. What a tragedy. I think that this is a nation composed of brainwashed individuals (not all, of course, but many). I feel like saying you are a Christian and pro-life can buy you a ticket to rape, rob and pillage the citizens of this and other countries. I want to say "voting for your morals only has led to more devistation and evil than you would have if you had elected the guy that was going to uphold roe v wade". McCain's choice for VP is an example of his vainity. He was married to a model before he went to war. When he came back she had been horribly disfigured so he left her and married Cindy a month after his divorce was final. Now he had another beautiful wife who was rich too. He has chosen Palin because he thinks he can't lose if he looks good. I feel so angry when I hear people say they support McCain/Palin. I just can't understand how they can be so ridiculous when it is so obvious. Come on people....what could you possibly find attractive about him (besides the fact he SAYS he is a Christian).

[SPQR1052]

So is this a tactic or strategy? I am confused.

"... force America into bankruptcy.."

http://edition.cnn.com/2004/WORLD/meast/11/01/binladen.tape/

Watch video here:
http://www.barackobama-joebiden2008.com/binladen-bankrupt-us.flv


It has NEVER been our military or arsenal of weaponary which has protected us. IT has ALWAYS been our WEALTH.