The Savings & Loan Collapse and McCain's Role in it
by Devilstower, Daily Kos
A concise explanation of the Savings & Loan collapse and the role John McCain played in it as a member of the “Keating Five”
“Once is happenstance. Twice is coincidence. Three times is Enemy Action.”
— Auric Goldfinger
James Bond's wealthy nemesis may have had an obsession with gold, but he judged, quite correctly, that if people keep putting your plans awry, that was likely their intent.
In 1982, the same year John McCain entered the Senate, a bill was put forward that would substantially deregulate the Savings and Loan industry. The Garn-St. Germain Depository Institutions Act was an initiative of the Reagan administration, and was largely authored by lobbyists for the S&L industry — including John McCain's warm-up speaker at the convention, Fred Thompson. The official description of the bill was “An act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans.” Considering where things stand in 2008, that may sound dubious. It should.
Seven years later, the S&L industry was collapsing. What was the cause? And what was the role of John McCain in the collapse?
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