Savings Loan Scandal Quotes
Criticizing federal regulators in the 1989 Savings and Loan scandal:
The Senator had intervened in the regulatory process on behalf of the Lincoln Savings and Loan. The bank owner had made large contributions to the senator's campaign:. The bank failed costing the taxpayers billions of dollars.
At the time of this interview there had been a decade of business fraud at many different levels. The regulatory agencies supposedly responsible for the regulation had neither the staff or the political will to even enforce the laws and regulations then in existence and there were many loopholes in those. Many business interests opposed all regulation and strict enforcement as a diminution of the health of the economy. Others, like Greenspan, saw fraud as corrupting the markets themselves and therefore the usual capitalistic economic competitive forces that would control business do not operate with extensive fraud.
The savings and loan crises became clear shortly thereafter.
by disclosing elements of the savings and loan scandal.
Commenting on the 1989 savings and loan scandal:
Referring to appearances of impropriety with reference to the Lincoln Savings & Loan scandal:
In the 1989 savings and loan scandal the congressman castigated witnesses before his committee.
In the Savings & Loan crises there were under 1000 bankers and others who had committed crimes, In the Meltdown of 2008, there were tens of thousands of criminals. Almost everyone connected with home mortgages broke the law, and all of the major banks in America had officers at the highest levels who committed perjury and fraud regarding foreclosure of mortgages. The biggest fish were involved as well as many thousands of others. Wall Street and the financial industry spend many millions in lobbying and campaign donations to be sure that there would be very few prosecutions and even then no major financial leaders would be called to account in a criminal court. The FBI had identified MILLIONS of cases of perjury and fraud in bank forclosures alone.
