The Victims of Keating and McCain

[pamela]

From the LA Times April 8,1999

http://articles.latimes.com/1999/apr/08/local/me-25451

"When Lincoln Savings and American Continental went belly up in 1989, many of these investors, who called themselves “The Losers,” banded together and held monthly meetings in Sherman Oaks. They worked as one to try to get their money back and consoled each other about their financial ruin.

Now, many are scattered and alone. Most are elderly; some have died. Some of the victims feel wronged, shortchanged, forgotten. Others are mystified at how such a well-documented scandal of enormous scale–with 23,000 investors and $285 million gone, ended with the culprit serving less than five years in prison and cleared of any fraud on the thrift and investors.

-snip

Some, it should be said, lost more than money. Victims this week shared troubling accounts of marriages, college educations, homes and even lives that were sucked away by failed junk bonds.

Anthony Elliott, 89, of Burbank took a razor to his wrists and died in his bathtub in 1990 because he was distraught over losing $200,000–his life savings–in the banking collapse."

[Diane R]

1. K&R

[pamela]

2. Thanks, Diane.

There is so much talk about Keating and the Keating 5, but very little talk about the folks whose lives were ruined. So many were elderly that I suspect they are dead by now. It's so sad to think they lived out their remaining years trying to receive some type of restitution.

[Tatiana]

3. THANK YOU. I hope those who need to be informed will read the article.

This wasn't simply another government bailout. It was the destruction of the lives of many people.

[pamela]

7. "It was the destruction of the lives of many people."

Exactly! I remember the Keating 5 scandal very well because there was a similar S&L scandal at that time in a town near where I lived. Our local news did a lot of stories on the victims and it was heartbreaking. These weren't, for the most part, rich folks with other accounts and investments. These were people who were counting on this money to survive. I'll never forget some of the older victims talking, with tears in their eyes, about how their loses were effecting them. And, like the Keating scandal, the local scandal I mentioned was particularly hard to swallow because of the excesses, (lavish trips and parties, etc) of the perpetrators.

[writes3000]

4. Wow! This may be the most powerful follow-up. This needs to go viral. nt

[pamela]

8. There's another powerful article at the LA Times web site...

about the suicide of Anthony Elliott. It's in their archives and you have to pay to access it. I'm thinking about springing for the 4 bucks to get it. I'll post excerpts here if I do.

[LittleBlue]

5. Brilliant, Pamela

Very good! Forward to Senator Obama :D

[pamela]

9. Thanks, LittleBlue! n/t

[BlooInBloo]

6. Averaging $12,000 per investor. Sigh.