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Reply #27: The Bush Family: A Continuing Criminal Enterprise? (GW Potter, Professor of Criminal Justice) [View All]

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Octafish Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-29-06 10:38 PM
Response to Reply #14
27. The Bush Family: A Continuing Criminal Enterprise? (GW Potter, Professor of Criminal Justice)
You're absolutely correct, Lilith Velkor: The Bush Crime Family has gone global. Plus, they've got control of the Pentagon's gun closet.

Still, you're absolutely correct, Lilith Velkor: They are nothing but a bunch of low-down dirty gangsters.

The Bush Family: A Continuing Criminal Enterprise?

Gary W. Potter, PhD.
Professor, Criminal Justice
Eastern Kentucky University

The S&Ls, the Mob and the Bushs

During the 1980's hundred of Savings and Loan Banks failed. Those bank failures cost U.S. taxpayers over $500 billion to cover federally insured losses, and much more to investigate the bank failures (Pizzo, Fricker, and Muolo, 1989; Brewton, 1992; Johnston, 1990). More than 75% of the Savings and Loan insolvencies where directly linked to serious and often criminal misconduct by senior financial insiders (Pizzo, Fricker and Muolo, 1989: 305). In fact, less than 10 percent of bank failures are related to economic conditions, the rest are caused by mismanagement or criminal conduct (Pizzo, Fricker and Muolo, 1989: 305).

A good example of the Savings and Loan failures can be found in the activities of Mario Renda, a Savings and Loan insider who often worked in close collaboration with organized crime (Pizzo, Fricker and Muolo, 1989: 123-126;302). Renda served as a middle man in arranging about $5 billion a year in deposits into 130 Savings and Loans, all of which failed (Kwitny, 1992: 27). Many of these deposits were made contingent on an agreement that the Savings and Loan involved would lend money to borrowers recommended by Renda, many of whom were organized crime figures or people entirely unknown to the banking institution involved (Kwitny, 1992: 27).

Equally good examples of financial misconduct in the Savings and Loan scandal is found in the activities of the Bush family. In some cases Bush family members helped skim Savings and Loan funds which were delivered to outsiders as a part of deals involving lucrative payoffs to bank directors. In other cases, members of the Bush family intervened to influence decisions involving highly speculative and unsound investments involving loans that would not be repaid if the venture was not profitable. And finally, the Bush familys political connection served to protect those guilty of misconduct in the Savings and Loan scandal (Kwitny, 1992: 24).

Neil Bush: Taking Down Silverado

In 1990 federal bank regulators filed a $200 million lawsuit against the officers of Silverado Banking, including Neil Bush, brother of the current President. The lawsuit accused them of gross negligence which resulted in a loss of $1 billion by Silverado and the banks ultimate collapse (Los Angeles Times, 1990). According to the Federal Deposit Insurance Corporation: Our conclusion is that Silverado was the victim of sophisticated schemes and abuses by insiders and of gross negligence by its directors and outside professionals (Johnston, 1990). Neil Bush was reprimanded by the Office of Thrift Supervision for pervasive conflicts of interest while serving as a paid director of the bank Of particular concern was his role in a serious of loans totaling $132 million from the bank to two businessmen, Bill Walters and Kenneth Good (Los Angeles Times, 1990: 1; Isikoff, 1992: A1). Walters and Good, after securing the loans from Silverado, lent Neil Bush $100,000 and later forgave the loan entirely. In addition, Walters and Good owned a company which paid $550,000 in salaries to Neil Bush (Los Angeles Times, 1990: 1; Isikoff, 1992: A1). In the end Walters and Good lost a total of $330 million loaned to them by Silverado. They also received instructions from a member of Silrverados board of directors on the establishment of family trusts to prevent the government from seizing the money they owed the bank (Kwitny, 1992: 32). The shutdown of Silverado was postponed from October to December 1988 so that it would happen after President Bush, Sr.s election campaign had ended. Neil Bush had to pay only $50,000 to settle the federal lawsuit against him and he was able to avoid any legal costs because a senior banking industry lobbyist formed a legal defense fund to pay the legal costs (Fritz, 1992).

Neil Bush also profited enormously from another company on verge of bankruptcy. Apex Energy paid him over $2000,000 in salary and oil deed compensation payments while teetering on the edge of bankruptcy (Failing firm paid Neil Bush big salary, 1992).


PS: Thanks for the kind words. I aim to inform. On Them.
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