Charles Keating Dies: Face of 1980s Savings-and-Loan Crisis Was 90

Image: Charles Keating Dies: Face of 1980s Savings-and-Loan Crisis Was 90

Wednesday, 02 Apr 2014 10:26 AM

By Clyde Hughes

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Charles H. Keating, who became the face of the $150 billion 1980s savings-and-loan crisis that led him to prison, has died. He was 90.

Keating was convicted of fraud, racketeering and conspiracy in state and federal trials. He went to prison for four and a half years in connection to the savings and loan scandal, in which he fleeced thousands of depositors with regulatory help from a group of United States senators known as the Keating Five, the New York Times reported. 

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Keating looted the accounts of thousands of his Lincoln Savings & Loan customers in Irvine, Calif., eventually costing the government $3.1 billion, according to the Los Angeles Times. 

His verdicts were overturned on appeals in 1996, and California dropped the case just before a federal retrial in 1999. Keating pled guilty to four counts of wire and bankruptcy fraud and was sentenced to time he had already served.

He was then accused of asking U.S. Senators Alan Cranston of California, Donald W. Riegle Jr. of Michigan, John Glenn of Ohio and Dennis DeConcini and John McCain of Arizona, to pressure the Federal Home Loan Bank Board to relax its rules and kill its investigation, according to The New York Times.

The senators became known in the media as the Keating Five.

The Senate Ethics Committee ruled in 1991 that none of the senators broke any laws; however, Cranston, DeConcini and Riegle interfered with the bank board's inquiry and were rebuked. The Times reported that Glenn and McCain were cleared but were criticized for using "poor judgment."

Many of those who invested with Lincoln were older Californians who collectively bought $265 million worth of uninsured American Continental junk bonds.

"He took their life savings and spent them on mansions, pleasure boats, private airports, indulgences of virtually every whim he and his family had," Alice Hill, a federal prosecutor in the Keating case, said at the time.

Keating had been working as an occasional real estate consultant and living a low key life in Phoenix before his death.

Editor's Note: Do You Support Obamacare? Vote in Urgent National Poll

Related Stories:

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Lost Luggage Found 20 Years Later Returned to Arizona Woman

Thursday, 18 Dec 2014 15:16 PM

Lost luggage found 20 years later was returned to an Arizona woman with a handwritten note on Tuesday. . . .

Bus Driver Takes Cane From Blind Boy, Replaces It With Pool Noodle

Thursday, 18 Dec 2014 15:07 PM

A Kansas City school bus driver took away an 8-year-old blind boy's cane this week and replaced it with a pool noodle, o . . .

Atheist Group's Billboard Battles: Signage Slams Christmas, Christians

Thursday, 18 Dec 2014 14:41 PM

The American Atheists have launched an anti-Christmas billboard campaign to help "in-the-closet atheists who are pressur . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved