Barack Obama’s campaign has announced that they will now be educating America on the Keating Five scandal and John McCain’s role. They had been staying away from talking about this as they tried to run a ‘high road’ campaign.
Rick Davis – the McCain’s campaign advisor had said that this campaign is not about the issues. Now he took it a step further by revealing that for the final 31 days before the election, the McCain campaign will be running a smear campaign – though they called it a negative ad campaign.
It’s hard to imagine that they can get lower than they already have. But then again, Sarah Palin has been playing the association game with Obama, referencing his association with William Ayers, Reverend Jeremiah Wright, etc.
Beginning at noon on Monday, October 6th, the Obama campaign will be releasing a 13-minute video detailing the Keating Five scandal – called ‘Keating Economics: John McCain and the Making of a Financial Crisis.’ You will be able to watch this video and read more information about the scandal at: Keating Economics.
The timing of this video is also important as we are – as we all know – reeling in another economic crisis.
This is from Keating Economics.
The current economic crisis demands that we understand John McCain’s attitudes about economic oversight and corporate influence in federal regulation. Nothing illustrates the danger of his approach more clearly than his central role in the savings and loan scandal of the late ’80s and early ’90s.
John McCain was accused of improperly aiding his political patron, Charles Keating, chairman of the Lincoln Savings and Loan Association. The bipartisan Senate Ethics Committee launched investigations and formally reprimanded Senator McCain for his role in the scandal — the first such Senator to receive a major party nomination for president.
At the heart of the scandal was Keating’s Lincoln Savings and Loan Association, which took advantage of deregulation in the 1980s to make risky investments with its depositors’ money. McCain intervened on behalf of Charles Keating with federal regulators tasked with preventing banking fraud, and championed legislation to delay regulation of the savings and loan industry — actions that allowed Keating to continue his fraud at an incredible cost to taxpayers.
When the savings and loan industry collapsed, Keating’s failed company put taxpayers on the hook for $3.4 billion and more than 20,000 Americans lost their savings. John McCain was reprimanded by the bipartisan Senate Ethics Committee, but the ultimate cost of the crisis to American taxpayers reached more than $120 billion.
The Keating scandal is eerily similar to today’s credit crisis, where a lack of regulation and cozy relationships between the financial industry and Congress has allowed banks to make risky loans and profit by bending the rules. And in both cases, John McCain’s judgment and values have placed him on the wrong side of history.
View the preview of the video
View the full 13-minute video.