Monday, October 6, 2008

Obama Ad: Keating Economics - John McCain & The Making of A Financial Crisis

The Honest Politician Says : The Keating scandal is quite similar to today's credit crisis, where a lack of regulation and relationships between Congress and the financial industry has allowed banks to provide risky loans and profit by bending the rules. During the late 80's to early 90's, John McCain was accused of improperly aiding his political pal, Charles Keating, chairman of the Lincoln Savings and Loan Association. McCain was known to be one of the "Keating Five" — five U.S. senators investigated over accusations they tried to interfere with a federal investigation of Keating's role in the savings-and-loan's collapse. 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 Senate Ethics Committee, but the actual cost of the crisis to American taxpayers reached more than $120 billion. It seems that John McCain did not learn from his previous mistakes and is a major blow to the campaign as we currently face a financial crisis. Since this is a huge charge against McCain we had to FactCheck this one - Verdict is : True

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