Didn’t we Bail Out financial institutions in the 80s

[FreakinDJ]

And now here they are again bellied up to the Federal tax dollar’s feed trough once again just 20 short years later asking for a lowered Federal Reserve rate.

This "Deregulation" thing started during the Regan era seems to be working really well, dosen't it

BTW: What is the estimate of when the American tax payer will be done paying off the S&L fiasco from the 80s? Last I heard it was 2010

[jpak]

1. Yes, taxpayers dished out $3.4 billion to fix McCain's favorite S&L

http://www.realchange.org/mccain.htm

<snip>

Founding Member of the Keating Five

Back in the old days, defendants in famous trials got numbers -- the Chicago Eight, the Gang of Four, the Dave Clark Five, the Daytona 500. McCain was one of the "Keating Five," congressmen investigated on ethics charges for strenuously helping convicted racketeer Charles Keating after he gave them large campaign contributions and vacation trips.

Charles Keating was convicted of racketeering and fraud in both state and federal court after his Lincoln Savings & Loan collapsed, costing the taxpayers $3.4 billion. His convictions were overturned on technicalities; for example, the federal conviction was overturned because jurors had heard about his state conviction, and his state charges because Judge Lance Ito (yes, that judge) screwed up jury instructions. Neither court cleared him, and he faces new trials in both courts.)

Though he was not convicted of anything, McCain intervened on behalf of Charles Keating after Keating gave McCain at least $112,00 in contributions. In the mid-1980s, McCain made at least 9 trips on Keating's airplanes, and 3 of those were to Keating's luxurious retreat in the Bahamas. McCain's wife and father-in-law also were the largest investors (at $350,000) in a Keating shopping center; the Phoenix New Times called it a "sweetheart deal."

<more>

[Frustratedlady]

4. Wasn't that one to bail out one of the Bush boys?

Was it Neal/Neil? I can't keep track of those criminals. So many, so much, so often.

[xchrom]

6. reagan promoted the notion of socializing losses and privatizing gains.

part of ''trickle down'', supply side economics thingy.

right up there with the republick party mantra bellowed by the idiot in chief -- ''it's your money'' and ''fuzzy math''.

[gasperc]

2. Yes, this is one part of the 80's no one wanted to rewind

[HereSince1628]

3. It took a while for the nation to forget the 1920's.

True enough the deregulation dance was popular in the 1980's, but we choose to forget history at our own peril.

The dreaded banking and investment regulation was a response to the excesses of human nature that brought about the Great Depression.

Time passed, but people didn't change. Now we are back looking at many many destroyed families.

[CBGLuthier]

5. Except for the first one

Penn Square Bank in Oklahoma City. In fact, hang on a sec.....


I just went to my window and looked at the giant office building they built and planned on moving into until the bad loans hit and they went under. It never even got their name on it. :-)

FDIC kicked in of course but a lot fo people had more than the covered amount and lost money.

The government stood by and let this one go under. When the next bank had trouble after that they stepped in and stopped it from failing.

[flvegan]

7. Do you mean the RTC (Resolution Trust Corporation)?

IIRC, that was "only" like $300 billion.

[FreakinDJ]

8. It was FDIC in the 80s

I don't know who it is now

Just tired of the "Captains of Industry" ripping off the tax payers through loop holes and no one in Washington doing a damm thing about it

[Mandate My Ass]

9. The term "bail out" suggests they legitimately and honestly failed

which is far from the case of the S&Ls, particularly Neil Bush's Silverado S&L. They were deliberately crashed so the payoff that resulted was more like an unarmed, gov't sanctioned stick up. But I know you know that. :-)

[FreakinDJ]

10. And here we are again with the ARM crisis

Lower Federal Reserve rates for institutions and NEW and IMPROVED bankruptcy laws to insure home owners lose what ever equity they might have had

What is the difference - the little guy gets stuck with the bill while the Fat Cats make off with the loot