Republican red faces as regulators close bank

[DogPoundPup]

Source: Financial Times

A bank with ties to the family of John McCain was shut down by federal regulators on Friday, marking the 11th US bank failure this year and threatening to cause ripples across the presidential election campaign.

Andrew McCain, son of the Republican presidential nominee, was a director of Nevada-based Silver State Bank until resigning in July for “personal reasons”.

He was a member of Silver State’s audit committee, which has responsibility for overseeing the bank’s financial accounts.

Silver State was heavily exposed to construction and land development loans that have come under pressure as the housing market slumps.

Much of the bank’s business was concentrated in Las Vegas and other western cities that have suffered some of the sharpest falls in land prices after years of rapid growth and heavy speculation.

Silver State had about $2bn of assets and $1.7bn in deposits at the end of June and reported a second-quarter net loss of $72.3m.

Its failure is expected to cost the Federal Deposit Insurance Corporation, which insures bank deposits up to $100,000, about $450m-$550m.

Read more: http://www.ft.com/cms/s/0/03409c8c-7d46-11dd-8d59-000077b07658,dwp_uuid=a58b7ee6-1c23-11dd-8bfc-000077b07658.html

[WannaJumpMyScooter]

1. Now, there's a headline from 1986

a McCain involved in shady bank dealings?

[Faith No More]

28. Typical egg-sucking republican

screw things up and then walk away, leaving somebody else to foot the bill for the mess.

[superconnected]

53. But the truth is most likely he helped rob them then left them in financial shambles

Just like the Bush junta is doing to the federal reserve right now - including that 1 bln for georgia that will go to defense contractors.

You can bet this bank made lots of backroom deals that were bad for the bank but the higher ups got side pay from the corporations for making them.

Really when it comes to 400-500million bail outs, it's not an accounting oversite. It's a raid on assets. This is a let it happen on purpose situation.

[LynnTheDem]

2. That's nuthin'! Wait till you see what his daddy can do to finish bankrupting

America!

[notadmblnd]

3. Memories, like the corners of my mind

misty water colored memories... of the Keating Five.

[1776Forever]

6. Yes Yes Yes - Was just thinking the same thing! Sick Sick Sick .....

What a joke they both are!

[AzDar]

4. Kick...

:kick:

[AzDar]

5. Kick...

:kick:

[Dr.Phool]

7. Republicans make money the old fashioned way.

They steal it.

Maybe this is why McLame wants families to be "hands off" in campaigns.

[santamargarita]

8. Corruption is a Republican family thing!

~

[hardtoport]

9. I really wish some investigative reporter would dig deeper

into this. McCain has a long history of shady land deals and inappropriate ties to bankers. I don't think it's a leap to think there would be some fire causing all this smoke. Of course, since the media doesn't seem to do the " journalism " thing anymore, I'm probably hoping in vain.

[Night_Nurse]

10. The apple...

doesn't fall far from the tree, does it?

[WheelWalker]

55. In recent months I've modified that aphorism....

it's the NUT that doesn't fall far from the tree. Apples will usually role some distance, unless of court it's rotten fruit - then it just goes SPLAT!

[ClayZ]

11. K and R

[meowomon]

12. Move along. Nothing to see here...

[Wetzelbill]

13. Gee nobody could have called that one. :)

[Window]

14. Kick

:kick:

[Waiting For Everyman]

15. Reminds me of Wendy Gramm and the Bush Boys (n/t)

[McCamy Taylor]

16. Oops! I hope he didn't learn business from daddy.

[watrwefitinfor]

17. Don't fret. Our national media whores are on the job.

Just sit back and watch them tear into John McCain the way Tom Brokaw venomously and with a sneer lit into Joe Biden for five solid minutes on MTP Sunday morning - one searing, suggestive question after another, designed to rip the ugly truth about the situation from Joe's lying lips - because Joe's son works for a (solvent) Delaware bank.

Oh, yeah. They'll be on this any minute now.

Wat

[kristopher]

19. Waiting....

Waiting....























waiting......



















waiting...

[Highway61]

37. You saw that as well???

Boy did the MSM ever get to Brokaw....I was so pissed. All over Biden like a cheap suit...
We will hear nothing on this.

[redqueen]

38. The stark difference in the way these so-called journalists treat politicians is shameful.

I'm glad I didn't see Tom's sickening behavior for myself.

[clear eye]

18. Half a billion dollars!!

Do you know how many falling-down inner city schools could be rehabbed w/ that money?

Guess junior inherited his brains from his dad.

[ProfessorGAC]

44. Yeah, About 150!

33 1/3 million per school would go a LONG way toward making those places somewhere kids might actually want to be.
The Professor

[Vinca]

20. The kid must have inherited the Keating gene. nt

[DailyGrind51]

21. Remember Neil Bush's Silverado Savings and Loan?

Same type of scandal, different Republican!

[seafan]

22. Memories of the Keating Five rear their ugly heads. Hello, US media??

Republican red faces as bank closed by regulators

By Andrew Ward in Washington and Joanna Chung in New York
Published: September 8 2008 03:00

Financial Times

A bank with ties to the family of John McCain was shut down by federal regulators on Friday, marking the 11th US bank failure this year and threatening to cause ripples across the presidential election campaign.

Andrew McCain, son of the Republican presidential nominee, was a director of Nevada-based Silver State Bank until resigning in July for "personal reasons".
He was a member of Silver State's audit committee, which has responsibility for overseeing the bank's financial accounts.

.....


There is no evidence that Mr McCain did anything wrong nor that his departure was connected to the bank's financial troubles.

But the episode is a potential embarrassment to his father at a time when bank failures are adding to a broader sense of gloom and economic insecurity among US voters.
It could revive memories of John McCain's role in the "Keating Five" scandal during the 1980s savings and loans crisis, when he was reprimanded by a Senate watchdog for lobbying on behalf of a campaign donor whose mortgage lending institution was under investigation by regulators.

The younger McCain joined the board of Silver State in February after it acquired Arizona-based Choice Bank, for whom he had served as a director since 2006.
He is an adopted son from his father's first marriage but also has close ties to the senator's second wife, Cindy, in his role as chief financial officer of Hensley & Co, the Arizona-based beer distribution company controlled by Mrs McCain.

The 11 bank failures in the US this year compare with three in all of 2007 and none in the preceding two years. More are expected.

McCain: The Most Reprehensible of the Keating Five, Phoenix New Times, November 29, 1989


Is John McCain a Crook?, Slate, Feb. 18, 2000


http://mccainkeatingfive.com/?p=6">John McCain and the Keating Five, What Every Voter MUST Know

When the involvement of the Keating Five was made public, a scandal erupted and the Senate Ethics Committee launched their own investigation into whether the Keating Five had violated Senate ethics rules. The other four Senators left office either immediately or within one term. John McCain was formally rebuked by the Senate Ethics Committee for exercising “poor judgment” for intervening with the federal regulators on behalf of Keating, but because McCain accepted Keating’s gifts of travel and vacations to Bahama while McCain was a member of the House of Representatives (he served one term there before moving to the Senate), the Senate claimed they had no jurisdiction to censure McCain. (However the meetings to pressure federal regulators occurred during the first few months of McCain serving in the Senate in 1987, so that excuse doesn’t hold up) Link

Remember, McCain was heavily involved with Charles Keating even BEFORE McCain was a member of the Senate, namely, when he was a member of the House of Representatives, thereby escaping full punishment from the limited Senate proceedings.




John McCain's role in the Keating Five scandal


Mr. Straight Talk is a cruel hoax on the American people.

[bushmeister0]

49. Driving banks into the driving one thing, the media will heave a

collective yawn about this, but get this . . .

"He is an adopted son from his father's first marriage but also has close ties to the senator's second wife, Cindy, in his role as chief financial officer of Hensley & Co, the Arizona-based beer distribution company controlled by Mrs McCain."

He fucks up the distribution of beer and America will raise as one with pitchforks and torches ablazing.

[iamjoy]

23. What About McSame & Keating

how come this hasn't come up again yet in the election?

Never mind, stupid question.

[clear eye]

24. We have to get this from a British paper n/t

[blackbart99]

25. Ring any bells anyone

Silver State...Silverado Savings and loan. We went thru this how many years ago.
Non of this will stick to those that cause it. They'll walk we will pich up the tab
once agian. It's time to let these fail without bailout so that these repug's
lose everything they have.:patriot: It will hurt but maybe intelligent people will
stop investing with these assholes.:rant:

[MetaTrope]

26. Sure would be nice to see a hint of a headline like that in an American newspaper

[AnnaLouise]

27. McCain was bombing women in a lightbulb factory when shot down

McCain was bombing women in a lightbulb factory when shot down
according to Newsweek

Not enough people know that

[krkaufman]

29. Say it...... Privatize the profits.... Socialize the risk.

Time to return to 60% tax rates for the ultra wealthy.

[coznfx]

50. Absolutely!!

[liberalla]

30. another 'Welfare King'

K8-EEE used that term and it is perfect for these swindlers. They privatize the profits, socialize the losses, and in the process another wealthy welfare King is created. This is criminal.

McCain's Son Costs Taxpayers $500 Million

[APPLE_PIE]

31. We all remember the Keating Six

That was a Bush and a McCain also. HiYo Silverado!!!!!!

[paparush]

32. But..but..but.. the Econonmy is strong

:sarcasm:

[jph wacheski]

33. freedom to screw the little people

wow,. nice one. when repugs talk about freedom and small government,. what they are talking about is their freedom to screw the little people with no organized oversight into their shaddy dealings,. when will the under 250k income earners, that somehow allways seem to vote for the bastards, see them for what they are,. the moneied class engaged in a class war,. against the very people that vote for them,. envolking jesus, guns and abortion, seems to get these dimm-witted twits every time,. as if social conservatism has anything to do with the ACTIONS of the repugs,. jeesh,.

[ColonelTom]

34. And suddenly the Palin nomination makes perfect sense.

"The families are off limits!"

The McCain campaign knew this story might come out before the election. Now, because of the shitstorm they created by nominating Palin, they have Obama and Biden on the record as saying we can't talk about the children of the candidates.

We'll now have to say that we're only supposed to stay away from "children," meaning minors, and not offspring in general. It will be interesting to see how that distinction plays out in the media. I fear it will not play well for us, unless and until John McCain can be tied through more than parentage to his son's banking escapades.

[Lasher]

35. And McPOW's economic guru set up this S&L crisis on steroids.

We have Phil Gramm to thank for repeal of the Glass-Steagall Act and enactment of the Commodity Futures Modernization Act. Mr. banking deregulation himself. He and his wife Wendy are two of the shadiest characters of all time.

Gramm resigned in July after offering these words of consolation to Americans who have been suffering from foreclosures, job losses, high gas prices and rising food costs:

"You've heard of mental depression; this is a mental recession" he told the Washington Times. "We have sort of become a nation of whiners. You just hear this constant whining, complaining about a loss of competitiveness, ´America in decline´ … We've never been more dominant; we've never had more natural advantages than we have today."

http://www.americanchronicle.com/articles/72168

Before our eyes, GOP economic ideology is being revealed as a failure and worse. Yet McSame still gets support from about half the country? What the hell does it take to wake people up?

[snappyturtle]

39. "What does it take to wake people up?"

The 64K dollar question...opps, the almost 128K dollar question. Few people realize that 11 banks have failed in this country since January. The U.S.people have fallen into the poppy field of the republican party and thus euphorically complacent with the state of economic affairs. There will be no mention of any of the wonderful points brought up here in this thread. We're done. Many will suffer.

We lost one million dollars in the Silverado 'affair'. My husband worked his butt off and dispersed his earnings in Savings and Loans here in Texas and magically "POOF" gone! No one bailed us out. Eleven 'banks' failed here in our little town.I guess it was our fault to trust the 'banks'. You can imagine. More of the same with mcsame and his progeny, biological or political. We woke up long ago and have since watched the manipulation through deregulation of the banking industry in total amazement. Good luck to all....we MUST beat mcsame!

[Lasher]

40. These are the fruits of the Neoliberals' work.

Lots of people have learned about the Neoconservatives but too few have acquainted themselves with the Neoliberals who also lurk in the GOP.

Sorry about your $1M loss, hope you and your husband recovered.

Here, look in on this website, where Neoconservative coolaid is not normally an item of consumption: http://www.unlawflcombatnt.proboards84.com/index.cgi?

[snappyturtle]

41. Thanks so much for the link! Unfortunately, we never have truly

recovered. Increasing age and life have gotten in the way. I never lose hope but it isn't looking as that lives will fully recoup....but the bigger problem is the quality of life we've left to our children and grand children.

[agincourt]

36. The economy has to be the issue,

If the conservatives make this a high school popularity election like they've done in the past, McCheny and Prozac II will win.

[beac]

42. Andrew McCain-- following in his daddy's corrupt footsteps.

McBush must be SO proud. :puke:

[valerief]

43. kick

:kick:

[APPLE_PIE]

45. Sung to the tune of beverly hillbillies

Let me tell you 'bout the son now,  of old John McCain
and all the money in the bank they flushed down the drain.
Andrew was his name and he did his daddy proud,
I wonder if there ever will be interviews allowed.

No one says they cooked the books, noone says they lied
Why the money is all gone has them mystified.
Silver State was once a bank, on which you could depend,
Them rotton whores, they closed the doors, and stuck you in
the end.

The Keating SIX, with all their tricks, nearly bled this
country dry.
Bush at Silverado kind of stuck it in our eye.
But never fear, McCain is here, He's here to save the day
But I've been told, that he's too old, and Palin will not say.

[Baby Snooks]

46. "Silverado"

Neil Bush was a director of Silverado. As was the wife of one of the Republican Party's "big daddys" who went on to serve on the board of Fannie Mae. After Silverado collapsed. No doubt she managed to limit the losses of some of the biggest depositors along with Neil Bush.

In all likelihood, Silver State was a casualty of the economy which in Nevada is not exactly refelective of a "recovering economy" which is a phrase you will hear quite a bit now that the campaigns have begun.

As in "the economy is recovering but it's because of the Republicans" which of course will be interchanged depending on the audience and the pitch with "the economy is a disaster and it's because of the Democrats having controlled Congress for two years" although at this point the Republicans will find something to add to indicate that there is a "recovering economy" despite the Democrats and therefore you have to vote for the Republicans to allow the economy to recover completely.

Load up on the Xanax and the TUMS. You will need both to survive the campaign of McCain and Palin.

As for this, as with everything else, watch the Republicans turn it into something to just use against the Democrats. To divert attention. They are very good at diverting attention. They are all con artists. And good ones it seems.

[intheflow]

47. Leave John McCain's poor son alone!

Hey, if Bristol Palin's "family values" pregnancy is off limits then Andrew McCain's taking after his "reformer" dad must be off limits, too.

[grantcart]

48. after tracking it sorry to have missed the final drop

you can see the history here http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1217120283937&chddm=1173&q=NASDAQ:SSBX&

[Stockholm]

51. Mark my words

That boy is going to be president of the United States of America some day. Running a business into the ground seems to be a standard Republican qualification.

[nam78_two]

52. K&R.nt

[Joe Chi Minh]

54. Another tax break in sheep's clothing.