Charles Keating

Charles Keating Name Instructor`s name Course Date Institution Charles Keating Charles Keating got Support from Five U.S Senators Charles Keating was the chairman of Lincoln Savings and Loan bank, which collapsed in 1989. Many stakeholders were defrauded, the state lost about $3 billion and investors lost all their investments (Pontell & Kitty, 2010). The scandal was commonly known as the Keating five since, it involved allegations of involvement of five U.S senators in fraudulent activities. The five senators were; the Democrat of Arizona, Dennis DeConcini; the Democrat of Ohio, John Glen; the Democrat of California, Alan Cranston; the Democrat of Michigan, Donald Riegle and the Republican of Arizona, John McCain. The five were alleged to have interfered in the investigations into Lincoln savings by the Federal Home Bank Board (FHBB) (United States Senate Select Committee on Ethics, 1991). Consequently, the board did not pursue the investigation to an actionable end (Associated, 1999). The political background of the senators and their influence on the Case The senators were key political figures in U.S politics and given that, the scandal happened at the time when the republicans had gained control of the house through a congressional vote. Consequently, most of the democrats got influential positions in the government. For instance, in 1986, the staff at Lincoln savings used this position to pressurize senator Cranston to block Gray of FHBB from discussing matters pertaining Lincoln savings (Calavita, Tillman & Pontell, 1997). The main reasons behind the senators backing Keating originated from the political contributions amounting to about $3 millions that Keating made towards their campaigns. It is this relationship that had bonded them together (Calavita, Tillman & Pontell, 1997). However, the senate ethics committee carried out an investigation and gave the following findings in 1991. Senator Cranston was to receive a formal reproof, senators Riegle and DeConcini had interfered with the investigations of FHBB and finally the duo of McCain and Glenn were to be spared but had acted improperly by exercising poor judgment (United States Senate Select Committee on Ethics, 1991). Combati...