mccain was ultimately cleared but the fact is that he apparently well he did meet with a federal home loan bank board the f.h.a. l b b in the night in one thousand nine hundred seven to intervene on behalf of charles keating who at that time was the largest of the savings and loans banks and was clearly very corrupt and in fact had basically encouraged a lot of his pensioner and older people depositors they had convinced them to buy all these bonds and put those bonds into the parent company of lincoln savings and they lost hundreds of millions alternately but he went to his very good friend senator john mccain went to him. and he also by the way paid for him to go on many vacations john mccain and his wife and this guy charles keating basically convince them to go talk to the regulators and get them off their back so it was only until he he successfully got them off their back for two years and the bank then collapsed two years later and almost took down the u.s. economy in the global economy but this is the sort of pattern that we see around the world and i know keating five of the savings an

long ago there used to be something that some of us may remember the federal home loan bank board, the federal home loan bank board was abolished and succeeded by the federal housing finance board which was abolished and succeeded by the federal finance agency. .'m sorry all of these structures have the problem that in addition trying to control risk, they're cheerleaders for housing finance. we see this very clearly in the policies under mr. watt. we want and we need to have somebody focusing on them and hearing about their risk who is not a cheerleader for housing and i think the fed for all its faults is not a cheerleader for housing. >> cheerleader for that fed. >> the fed is full of truly competent, smart, diligent people like steve was. so it problem isn't the people or the institution. the problem is the fundamental nature of financial market and the unnobleness of the financial future. >> didn't you say the fed was part of the federal government and wouldn't go against their bosses. why would they regulate fannie and freddie? >> you have to use the instruments that are availabl

mccain was ultimately cleared but the fact is that he apparently well he did meet with a federal home loan bank board the f.h.a. l b b in the night in one thousand nine hundred seven to intervene on behalf of charles keating who at that time was the largest of the savings and loans banks and was clearly very corrupt and in fact had basically encouraged a lot of his pensioner and older people depositors that he had convinced them to buy all these bonds of put those bonds into the parent company of lincoln savings and they lost hundreds of millions alternately but he went to his very good friend senator john mccain went to. he also by the way paid for him to go on many vacations john mccain and his wife and this guy charles keating basically convince them to go talk to the regulators and get them off their back so it was only until he successfully got them off their back for two years and the bank then collapsed two years later and almost took down the us economy in the global economy but this is the sort of pattern that we see around the world and i know keating five of the savings and loan cris

mccain was ultimately cleared but the fact is that he apparently well he did meet with a federal home loan bank board the f.h.a. l b b in the night in one thousand nine hundred seven to intervene on behalf of charles keating who at that time was the largest of the savings and loans banks and was clearly very corrupt and in fact had basically encourage a lot of his pensioner and older people depositors they had convinced them to buy all these bonds and put those bonds into the parent company of lincoln savings and they lost hundreds of millions alternately but he went to his very good friend senator john mccain went to. him and he also by the way paid for him to go on many vacations john mccain and his wife and this guy charles keating basically convince them to go talk to the regulators and get them off their back so it was only until he successfully got them off their back for two years and the bank then collapsed two years later and almost took down the us economy in the global economy but this is the sort of pattern that we see around the world no kidding five in the savings and loan crisis

mccain was ultimately cleared but the fact is that he apparently well he did meet with a federal home loan bank board the f.h.a. l b b a in the night in one thousand nine hundred seven to intervene on behalf of charles keating who at that time was the largest of the savings and loans banks and was clearly very corrupt and in fact had basically encouraged a lot of his pensioner and older people depositors that he had convinced them to buy all these bonds and put those bonds into the parent company of lincoln savings and they lost hundreds of millions alternately but he went to his very good friend senator john mccain went to him and he also by the way paid for him to go on many vacations john mccain and his wife and this guy charles keating basically convinced him to go talk to the regulators and get them off their back so it was only until he successfully got them off their back for two years and the bank then collapsed two years later and almost took down the u.s. economy in the global economy but this is the sort of pattern that we see around the world killing five of the savings and loan cri

. >> examiners from the federal home loan bank found what they described as a ticking time bomb.rs also uncovered evidence of improper bookkeeping and possible fraud. then the federal examiners were summoned for an extraordinary meeting with five united states senators. each senator had gotten large campaign donations from keating, his family, and their associates. >> in the most explosive testimony yet, edwin gray, the former chief regulator of the savings and loan industry told banking committee chairman henry gonzalez that four u.s. senators asked him to ease regulatory pressure on troubled lincoln savings & loan. >> john still tells me when he walked in the door of that meeting that had been arranged for this he knew that this was going to be a problem. >> i'm doing everything i can to try and set the record straight. again, admitting that i made mistakes and serious ones. but i did not abuse my office. and i think that's the key to this issue here. >> you told me this was the political crisis of your life. >> absolutely. >> tell me why it is. >> because my reputation is at s