Free «Charles Keating» Essay Sample
According to Williams (1998), Charles Humphrey Keating is an American lawyer, athlete, financier, banker, and real estate developer and is well known because of the role he played regarding the savings and loan scandal. He ran the Lincoln Savings and Loan Association, and American Continental Corporation in the 1980s. His enterprises started to suffer financial crises as the banking investments experienced loose restrictions. Lincoln Savings and Loan Associations finally collapsed in 1989 which cost the American federal government about $3 billion and left 23,000 clients with insignificant bonds (Grossman, 2003). Mr. Keating was imprisoned for about five years as he was pleaded guilty of racketeering charges in the federal government. In 1990’s, Charles Humphrey Keating was declared guilty in both state and federal courts due to fraud, conspiracy, and racketeering. In 1987, five senators, Dennis DeConcini, Alan Cranston, Donald W. Riegle, John McCain, and John Glenn were accused of intervening on behalf of Keating as they had already obtained political contributions of about 1.3 million dollars. Keating wanted the five senators to put pressure on the bank regulators to drop their case as far as Lincoln was concerned (Williams 1998).
In 1991, Alan Cranston, Donald Riegle, and Dennis DeConcini had substantially intervened in the investigation of Lincoln Savings and Loan Association by Federal Home Loan Bank Board (FHLBB). Cranston was born in June 19, 1914 and died in December 31, 2000 (Grossman, 2003). He was a Democratic Senator and journalist from California. Alan Cranston was formally rebuked in 1991 due to the improper conduct as he intervened in the investigation of Lincoln Savings and Loan Association. Keating contributed a total amount of $850,000 to the groups of voter registration that were closely associated with Cranston (Davies & Waldstein, 1994). It was believed that Cranston helped Mr. Keating to escape with the fiduciary offences that he committed in return for the contribution. The committee viewed the misconduct of Cranston as the worst among the five senators who comprised Keating Five (Grossman, 2003).
Donald Riegle was born in February 4, 1938 in the state of Michigan. He was a Representative for five terms and Senator for three terms. According to Williams (1998), during the time he was a senator, he intervened in the investigation of Lincoln Savings and Loan Association by Federal Home Loan Bank Board (FHLBB). Dennis DeConcini was born in May 8, 1937 in Arizona was a Democratic United States Senator and represented Arizona from 1977 to 1995. He was one of the Keating Five. The scandal that involved Keating and his Lincoln Savings contributed to the retirement of DeConcini in 1994 (Davies & Waldstein, 1994).
John McCain was born in August 29, 1936 in Arizona and he later became a senior Senator of the United States. He was one the Keating Five as he had received political contributions of about 112,000 dollars from Keating and the Lincoln Savings and Loan Association. Mr. Keating contacted John McCain for the purpose of preventing the seizing Lincoln by the government. According to the investigation of Lincoln by the federal regulators, McCain violated the Senate rule and was mildly reprimanded as a result of his poor judgment (Williams, 1998). McCain was the Republican candidate for president in the United States elections in 2008 but was not successful (Bardes, Shelley, & Schmidt, 2009). John Glenn was born in July 18, 1921 in Ohio, United States. He was a representative of Ohio in the Senate of the United States since 1974 to 1999. Glenn accepted a political contribution of 200,000 dollars from Keating. McCain and Glen are the only Senators who were exonerated (Williams, 1998).
The fiduciary crimes can be prevented by the governmental actions. It is necessary to inform citizens about the occurrences of the fiduciary crimes so that they are not involved as clients and become losers. For example, the fiduciary crime that Keating committed left 23,000 clients with insignificant bonds. The government should also confine the offenders in prison for a number of years and fine them for the purposes of restitution. This will instill fear into those who are intending to commit fiduciary crimes.