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S L Debacle

CALIFORNIA | LOCAL
December 8, 1990
"A person who makes a contribution has a better chance to get access than someone who does not"--a quote from Sen. Cranston (in his deposition to the Senate Ethics Committee) as to why he intervened on behalf of Charles Keating with the bank regulators. This certainly says a lot about Cranston's view of the workings of democracy. JOHN CORCORAN Playa del Rey
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CALIFORNIA | LOCAL
November 24, 1990
OPEC caused a crisis in the world when it decided to tell us who owned the oil fields. Shortly thereafter economic disruptions reverberated throughout the world. In the United States, this translated into inflation and an upset in a long-standing stability in interest rates. Caught in this storm, savings and loans, having loaned money out at low rates on 30-year paper, were caught in the bind of paying higher rates on short-term deposits. Faced with the problem of salvaging this situation, the Administration and Congress decided that the "easy way" would be to use the current "Reagan thinking" in free market systems, which was so popular with the voters.
CALIFORNIA | LOCAL
October 19, 1990
Poor Charlie Keating, Mary Elaine and their six beautiful children and 23 grandchildren, all of whom have no doubt benefited from grandpa's millions in profits made from his S&L debacle. Otherwise, where has all the money gone, now that poor Charlie is dead broke? I'm sure it is distributed among them from their loving, caring father so it cannot be easily traced. Justice will be meted to him, I hope. ALICE ADAMS Laguna Hills
BUSINESS
September 20, 1990 | WILLIAM J. EATON, TIMES STAFF WRITER
Federal regulators asked Congress on Wednesday for another $100 billion in the next year for the federal bailout of defunct savings and loan associations and warned that the bill would get far bigger if the economy tips into recession. "It is clear that the problems in the thrift industry are much more severe than was anticipated a little over a year ago," said L. William Seidman, chairman of the Resolution Trust Corp. "The number of troubled thrifts has turned out to be much greater than anticipated, and the market for the assets of insolvent thrifts has turned out to be more difficult than anticipated."
BUSINESS
July 23, 1990 | Reuters
Donald Trump's crumbling real estate empire will be examined next month at a hearing called by House Banking Committee Chairman Henry B. Gonzalez (D-Tex.), it was revealed today. Gonzalez said aggressive oversight is needed now to ensure that banks do not go the way of the thrift industry. Gonzalez, who had staff investigators in New York last week, has asked bank regulators and Trump lenders to testify at the hearings, to begin Aug. 9.
CALIFORNIA | LOCAL
January 30, 1989 | DONALD E. BURNS, Donald E. Burns is a former secretary of the California Business and Transportation Agency and assistant general counsel of the Federal Home Loan Bank Board. and
The search for scapegoats over the thrift industry debacle has targeted current and previous federal and state regulators, greedy acquirers of insolvent thrifts, incompetent and/or criminal S&L managers, Congress and the President. While there certainly is enough blame to go around, nowhere does one see any references to what started the slide down: the banking industry "reforms" of the mid-1970s.
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