McCain Campaign Rewrites Keating Scandal

In a conference call with reporters today, John McCain's lawyer John Dowd claimed that the Keating Five ethics investigation into McCain and four other senators was a "political smear job."

That seems to put him at odds with what McCain has claimed over the years. In fact, in 1999, McCain told a hometown reporter, "The appearance of it was wrong. It's a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it was the wrong thing to do."

McCain has often referred to the Keating Five scandal as the defining moment of his career - a moment in which he became a reformer. But the recent twist of historical fact by his lawyer undercuts what McCain has insisted for years - that he learned a lesson from the Keating Five scandal.

If that lesson was to fight for reforming the campaign finance system, it's a lesson he left behind years ago. McCain used to be the lead author of a bill to fix the presidential public financing system back in 2003, but he's refused to cosponsor it since then. He used to call the Arizona Clean Elections public financing law a national model, but now he says he opposed reform for federal offices.

If that lesson was that appearances matter, then he ought to have a look around his campaign office. His campaign is run, staffed, advised, and funded with the help of some of Washington's most successful - and infamous - lobbyists. From lobbyist Rick Davis, his campaign manager, who lobbied for Freddie Mac and Fannie Mae and received secret payments from Freddie for a no-show job, to lobbyist Charlie Black, his senior advisor, who has received payments from some of the most vile dictators in the past several decades, McCain's campaign has some of the worst "optics" of any presidential campaign in recent memory.

The Keating Five connections are very troubling for what they mean today - both on economic philosophy and on McCain's willingness to get cozy with special interests. Here's Campaign Money Watch's ad making that case:

Comments

[redpepper]

I would suggest that people get their facts straight about the Keating scandal: Such as Sentaor McCain was exonerated while John Glen was found to be guilty.

[rosieee]

Obama was 8 years old when the Ayers thing came up. He saw him at a charity function. Ayers was never charged with anything. Keating went to jail and McCains friend Rafaello Follieri was charged. Lets look at the fact and the economy not crap!

[gabbinjane]

Ayers WAS charged and tried. He beat the rap on a technicality! He even admitted he was guilty!! Check the record!

[SilverFoxUna]

Senator DeConcini of Arizona has a few things to say about the Keating Five scanda and how the subject is not off-limits in the current discussion:

http://www.politicker.com/deconcini-says-keating-five-fair-game

[NoBlinky]

I'd like to see Senator Obama spend less effort on this issue and instead "up the ante" on the economy discussion. One way to do that would be to offer to put an economic recovery team together that can swing into action as soon as the election is over, before he even takes office. I thnk that would give people something far more positive to associate with him.

[Wonder11]

Good Job! Let's take a HARD look at WHAT platform McCain is REALLY running on:

McCain is using his semi-illustrious past to propel him to the White House, but with neo-con navigators. Neither McCain nor Palin will be "In Charge" if, by some twist of fate, these two are elected. The point that Barack NEEDS to hammer home tonight is that McCain and his Gidget have NO PLANS! Nada! ...just a collection of "stratagests" zig zagging there way to November with inuendo, guilt by association, and blatant lies that not only make McCain look ludicrous, but insult the American voter's collective intelligence! Perhaps someone needs to pull back the curtain and expose the monkeys stirring the goo?

[maryyooch]

David,
I am SOOOO glad the Obama campaign finally came out with Keating 5! Obama is the man worthy of respect. He said he was not going to fight dirty and he hasn't. I cannot wait until he is our President!!
McCain/Palin have made me feel so ashamed for all of us in this country. It is truly a sad time in American politics when politicians try to incite hate and racists.
I'll be so glad when this is all over.

[kenrynne]

SILLY SEASON UPON US
What's Good for the Goose, Is Good for the Maverick.

Who Is Barack Obama? Team McCain says judge Obama by Mr. Ayers, a 60s radical when Obama "was in, like, 4th grade" as Gov. Palin might say.

Who Is Charles Keating? Team Obama says ok, judge McCain by Mr. Keating, a man McCain met when McCain "was, like, a newly wed working in the beer business for his father in law."

Facts not in dispute: Keating bankrolled McCain's '82 & '84 House campaigns ($56K) & '86 Senate campaign ($54k) (Nat Rev Ap 5,01); investment partner of Cindy and father-in-law ($359,100) (W Post, Nv 19,'89, pA1); met with newly-minted Sen McCain and others to jawbone regulators.

The bipartisan Senate Ethics Committee - reluctant to judge peers - found Sen McCain guilty of "poor judgment" intervening with regulators (a stern wrist slap). Others - D's (an irrelevant distraction, Free Ride, Brock & Waldman p53) were also culpable, three "substantially interfered with regulatory efforts" (a butt kick) - but John McCain thinks he should be President and questions his opponent's judgment. An opponent who did not require a Senate Ethics Committee adjudication to guide his judgment.

Exonerated, "to clear from accusation or blame." - Websters. John McCain was found guilty of "poor judgment." McCain has for years liked to say he was exonerated. See Free Ride, p53. Pensioners and taxpayers who picked up the tab, "exoneated" all, may beg to differ."

Now, back to the economy..

[gabbinjane]

You keep forgetting John Glenn. Oh, right, he's a Democrat!

[johnwinner]

"McCain and Keating had become personal friends following their initial contacts in 1981,[11] and McCain was the only one of the five with close social and personal ties to Keating.[33][34] Like DeConcini, McCain considered Keating a constituent as he lived in Arizona.[27] Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates.[35] In addition, McCain's wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating's expense, sometimes aboard Keating's jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.[7][36] Because of these connections, Phoenix New Times writer Tom Fitzpatrick stated in 1989 that McCain was the "most reprehensible" of the five.[37]"
http://en.wikipedia.org/wiki/Keating_Five

[hippieforlife]

Well, don't forget that the "Keating Five" included four democrats. And, John McCain was simply scolded. The prosecutor in that case, a democrate, has said that McCain really should not have been included. McCain has accepted his role and made his apologies.

Why the Keating Five has any resemblance to Bill Ayers is simply beyond me. Keating may have been a shady operator, but Ayers actually build boms and blew things up. I was in college when the SDS and the Weathermen were terrroizing our country. They were just not good people.

Just exactly who are Obama's real friends?

[alkyburner]

There may have been 4 democrats in the Keating five but they are not running for president. Once again - Barack Obama was 8 years old when the weatherman underground was doing what little it did - I am in my mid sixties and I remember it very well. It was mostly talk.... I think some of them managed to blow themselves up! They were better talkers than they were bomb makers....

[Dr Scott]

The relationship of John McCain to Keating is undeniable. Keating bought McCain with campaign funds. McCain personally tried to get regulators to lay off Keating. Keating went to PRISON for his part in the S & L meltdown. Keating is a criminal and gave John McCain his start in politics, supporting him with money, vacations, use of private jet, etc. Not to mention the investment of hundred of thousands of dollars in Keating's real estate schemes on the part of Cindy McCain and her father. Keating still owes the people of the United States billions of dollars in reparations.
William Ayers has never been charged with, or convicted of, any crime. He is active in Democratic politics in Chicago where, guess what, so is Barak Obama. Ayers is an education radical. Whether you agree with his views or not, he is a University professor, has written many books on education, and serves on many charities and committees to improve education. How is it that such a dangerous terrorist is roaming around free on the streets?
And what about Sarah Palin? Her husband belonged to the Alaska Independence Party for 7 years. The AIP advocates Alaska's secession from the United States. Their slogan: America sucks! Palin herself supported the Party with a taped speech as recently as last year.
So this attempt to pin William Ayers, the supposed terrorist, on Barak Obama is completely retarded. People in glass houses, you know?

[RedneckDem]

Last I could tell, none of those Dems from Keating 5 are running for Prez....

So, you're saying a charity that helps people should fold because of one man on the Boards past indiscretions? Ayers did his time for the crime and has spent his free years making amends to his community, WTF is wrong with that?

Only a repub troll can find hate out of redemption.

[Cautious]

Keating created economic bombs and blew up the Savings and Loan industry. I would suggest that that harmed a whole lot more people than anything Ayers did.

Does anyone know if Obama even actually knew about this part of Ayers' past?

And just exactly who are McSame's friends? We know about Phil Gramm and Charles Keating. Talk about domestic terrorism.

[djsue]

hippieforlife;

You mean that you, and the rest of the Republicans, have not figured out who Obama's real friends are by now? You must be using the same investigative committee that vetted Palin.

The Keating Five is a scandal concerning impropriety in the savings and loan community. Isn't the collapse of financial markets and the corruption involved, one of the reasons our economy is in bad shape now or did you miss something?

Ayers has nothing to do with the economy, so your reasoning is beyond me, when the Keating Five blew up the financial world of so many of the elderly and you can't seem to figure out the connection.

[bearcck]

For those of you under 50 years old....this Keating 5 was a big DEAL! It was the beginning of Americans lack of participation and understanding of the economy and the banking industry, which is what the creepy people wanted.

We all understood the idea of savers supplied money to lenders. Savers got a decent interest rate and borrowers got a decent (if not this low) interest rate. It was possibly the last time we tried to understand banking and the economy or even trust it.

The deregulation of the Reagan Administration which led people to believe money in the bank is not the same as future money in the bank left us all scratching our heads, but the IRA deal let us buy into it!

With all the money that flooded into IRA's the banks stopped being prudent. Americans did not ask questions because we were happy and we still trusted the system ....until the S&L scandal and the Keating 5 investigation.

Look folks ....while McCain may go on and on about honor and love of his country...he hangs with creeps and does not have the normal American antenae that pops up when things look creepy.

For those of us who cannot marry into money....we need to keep our antenaes up all the time. Anybody that offers us free trips and strokes our egos is always suspect.

[WritusMaximus]

Obama must quote McSame word for word re: McSame's mea culpa in the Keating scandal.
Not a smear, but just the facts. The TRUTH is McCain's biggest enemy, an enemy he cannot defeat unless he gets help from a forgetful/­apologetic media and a dem party unwilling to shine the spotlight on the facts.

[rednecka2z]

This type of rhetoric is a constant. It is so evident that very few who comment on a story are intellectuals. An original thought is seldom presented. The same stuff repeated time after time as presented by the party they are pushing.(most likely for their own personal benefit) I believe it is the result of MBA's produced by NEA. My definitions. Sure wish intelligent people would take the time to comment. (myself excluded) Now retired I have the time.

[Cautious]

OK, here I am- an intellectual. McCain got a lot of private goodies from Charles Keating- rides on his jet, trips to the Bahamas.

From Wikipedia (or is that not intellectual enough for you?):

Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates.[37] In addition, McCain's wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating's expense, sometimes aboard Keating's jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.[7][38] In 1989 Phoenix New Times writer Tom Fitzpatrick opined that McCain was the "most reprehensible" of the five senators.[39]

There's also McCain's relationship with Phil Gramm, who was neck deep in the Enron scandal.

I don't think it takes an "intellectual" to recognize a duck. Your observation that you wish "intelligent" people would post here is pretty bizarre, and the fact that you describe yourself as the only one posting is odd as well. If you're retired and you still have to go out of your way to describe yourself as an intellectual- that's just kind of wierd.

[RedneckDem]

The truth is that there is nothing noble in being superior to somebody else. The only real nobility is in being superior to your former self.
~ Whitney Young

Grasshopper, to become enlightened on this subject (McCain/Keating) you must visit master Google and type in magic words that show deeds unbecoming of a potential leader. Look past personal opinions posted here to the truth of video and the written word implicating potential leader. Watch as potential leader repeats same mistakes over and over, yet somehow expect different result. Then you yourself shall be intelligent in this particular case...

[Tommygun264]

McSame is counting on fooling 51% of the people. He's not swinging for the fences and that's why he'll lose. I think that somewhere deep down in that corrupt, putrid soul lurks a conscience of the man he once was and that is what is keeping him from committing completely and really selling his line. It stinks, he knows it stinks and that's why he is ultimately unconvincing to all but those desperate for some socially acceptable reason, ANY socially acceptable reason, to vote for someone other than the man they fear for no reason other than the color of his skin.

[WritusMaximus]

McCain never changed, it's just that some people fooled themselves into thinking that he has. Look at his voting record---pretty consistent when it comes to NOT helping the middle class he now promises to assist. Them votes/bills that didn't conform to his true self were just political calculations, not conviction. Yeah, he wanted to spit shine his "maverick" label for the votes it garnered, and once in a while you see him take out his handkerchief to do just that . McCain has always been pro corporate elite, but some folks want to think otherwise. Biden did a great job destroying the myth, but the truth has been out there since day one.

Let nobody do the thinking for you. Do your own research. The truth has no political label.

[StillAmused]

McCain surrogates are all over the media, angrily asserting that JohnnyMac was "exonerated".

In the criminal probe.

Small detail: HE WAS CENSURED BY THE ETHICS COMMITTEE!

As pointed out in the article, McCain hardly considered himself "exonerated" at the time (or afterward) and subsequently donned sheep's clothing as an ethics "reformer" in order to rescue his political career.

Entertaining, watching the McCain campaign wriggling on the hook... THEY'RE the ones who OPENED this can of beans!

[gabbinjane]

Censured by the Ethics Committee!!! Are you kidding me?? A non-binding resolution has more credibility!

[lbrillante]

This is relevant. I find it most disturbing that Gramm has been McCain's foremost advisor on the economy. I don't even want to imagine what our government would look like if McCain were in charge... it's bad enough the way it is and with McCain/Palin I fear it would get much worse.

During these challenging times... when I consider the mess he will inherit, I am very grateful to Senator Obama for being willing to be our president and to work with us to get our country moving in a healthy direction.

[WritusMaximus]

I hope you are right, otherwise the country will suffer. Obama's Yes vote on the bailout bill that doesn't address the problem sure doesn't look like a winner---rumors are that more billions will have to be spent to really address the problem.
Quite a spectacle will be having prez Obama, hat in hand, asking for billions more!

[Sparty1]

Are you saying that McCain WON'T look crazy asking for more money as well? JMac did vote Yes also. So what's your point?

[crease]

I don`t know about anyone else but I don`t want this man anywhere near the White house, he does not deserve to be president the way he has run his campaign is the way he will run(rule) this country and we have had 8 years of this crap and we don`t need anymore...........

[timezone]

I'm curious why the Directors and lobbyists of F&F gave McCain about 10 times more than they did to Obama campaign. McCain got over 150,000, Obama about 16,000.

[Pquilson]

could it be the length of time in the Senate, perhaps?

[timezone]

Pquilson, from CNNpolitics.com (2008 ONLY):

The New York Times has published a separate list looking at contributions from "directors, officers, and lobbyists for Fannie Mae and Freddie Mac" for the 2008 campaign cycle. That list — using figures from the Federal Election Commission — shows McCain receiving $169,000, while Obama received only $16,000.