McCain Repeating Keating Mistakes

A former regulator from the Savings & Loan scandal twenty-years ago says John McCain is repeating the same mistakes that embroiled him in the Keating Five scandal.

Huffington Post:

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." [emphasis added]

Comments (2) «

It all reminds me of "King Lear". John needs to be entertained by clowns and fools and then bases his decisions on them. Poor fellow can`t figure out why it`s not going better? Of course no one else wants anything to do with him.

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virgo1 on October 1, 2008 at 01:17 PM

Both Barack and Biden should be bringing up the Keating five and how McInsane went to bat for these crooks and how he`s doing again.How can he possibly adapt to what`s going on today. Certainly not with Phil Gramm at his side!

2

virgo1 on October 1, 2008 at 03:43 PM

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