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The Silver Anniversary of the “Keating Five” Meeting – Citizens United’s Precursor

Posted on April 9, 2012 by Mitch Green | 14 comments

April 9, 2012 is the twenty-fifth anniversary of the most infamous savings and loan fraud, Charles Keating’s, successful use of five U.S. Senators to escape sanction for a massive violation of the law. The Senators were Alan Cranston (D. CA), Dennis DeConcini (D. AZ), John Glenn (D OH), John McCain (R. AZ), and Donald Riegle (D. MI). They became infamous as the “Keating Five.” I was one of four regulators who attended the April 9, 1987 meeting. I took the notes of the meeting, in transcript format, that were so detailed and accurate that the Senators testified that they were sure I had tape recorded the meeting. (The reality is that I owe my note taking abilities to Bill Valentine, my high school debate coach, and experience debating for the University of Michigan.)

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Posted in William K. Black

Tagged Keating Five

We Were Regulators Once: Ed Gray’s Finest Hour

Posted on April 2, 2012 by Mitch Green | 5 comments

By William K. Black
(Cross-posted from Benzinga)

On April 2, 1987, four U.S. Senators met secretly with Federal Home Loan Bank Board (Bank Board) Chairman Edwin J. Gray in the offices of Senator DeConcini (D.AZ). Senator Donald Riegle (D. MI) was a surprise no-show. DeConcini was joined by Alan Cranston (D. CA), John Glenn (D. OH), and John McCain (R. AZ). Keating hired Alan Greenspan as a lobbyist to help recruit the Keating Five. The Senators held the meeting at the request of Charles Keating, who controlled Lincoln Savings (a California chartered S&L). Lincoln Savings would become the mostexpensive failure of the S&L debacle due to Keating’s political cronies and Keating became the most infamous S&L fraud. A week later, on April 9, all five Senators met with four of Lincoln Savings’ senior regulators. I took the detailed notes of that meeting. The Senators became infamous as “the Keating Five.” A quarter-century later, few remember what the meetings involved.

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