Sid's Fishbowl
A proud member of the reality-based community (aquatic division)
Friday, July 25, 2008

I had almost forgotten.

Keating had made contributions of about $1.3 million to various U.S. Senators, and he called on those Senators to help him resist regulators, when Lincoln Savings and Loan was being investigated by the Federal Home Loan Bank Board (FHLBB). Lincoln had become burdened with bad debt resulting from its past aggressiveness, and its investment practices were being investigated and audited by the FHLBB:[5] in particular, whether it had violated "direct investment" rules, which prohibited savings and loans from taking ownership positions in certain financial entities and instruments;[6] Lincoln had directed FDIC-insured accounts into commercial real estate ventures.[4] It appeared as though the government might seize Lincoln for being insolvent.[6] The investigation was, however, taking a long time.[5] Keating was asking that Lincoln be given a lenient judgment by the FHLBB, so that it could limit its high risk investments and get into the safe (at the time) home mortgage business, thus allowing the business to survive. A letter from audit firm Arthur Young & Co. bolstered Keating's case that the government investigation was taking a long time.[7]

By March 1987, Keating and DeConcini were asking McCain to travel to San Francisco to meet with regulators regarding Lincoln Savings; McCain refused.[7][6] DeConcini told Keating that McCain was nervous about interfering.[6] Keating called McCain a "wimp" behind his back, and on March 24, Keating and McCain had a heated, contentious meeting.[7]


Keating's relationship with McCain came under particularly intense press scrutiny.[citation needed] McCain and Keating had become personal friends following their initial contacts in 1981.[7] Between 1982 and 1987, McCain had received $112,000 in lawful[12] political contributions from Keating and his associates.[13] 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.[6][14]

This is excellent experience to have if one of the challenges of your presidency would be to clean up a failed housing market, yes?

Saturday, July 05, 2008

Hilarious: “The President has been praying every night that he doesn’t do any more damage than he has already wrought on the country.”

(from America’s Finest News Source, via)

John Edwards to debate Karl Rove in Buffalo.»

The Buffalo News reports that former Vice Presidential candidate John Edwards will debate Karl Rove on Sept. 26 on the campus of the University of Buffalo as part of the school’s Distinguished Speakers Series. In the midst of the U.S. attorney scandal, Edwards called on President Bush to “fire Karl Rove.” When Rove announced he was resigning from the White House, Edwards released a statement that simply read “Goodbye, good riddance.”

Presumably Edwards is the Distinguished Speaker and Rove is being invited as part of the university’s Unindicted Co-conspirator Series.

Thursday, July 03, 2008

One for every state (18 done so far, 32 to go, except Florida, apparently)

South Dakota is particularly nice: