Federal regulators seize Lincoln Savings and Loan, ending Charles Keating’s systematic fraud scheme that ultimately costs taxpayers $2.3 billion—one of the costliest S&L failures in American history. The seizure comes after years of regulatory delays caused by political interference from …
Charles KeatingFederal Home Loan Bank BoardResolution Trust CorporationLincoln Savings and LoanKeating Five Senatorscharles-keatinglincoln-savingss&l-crisisfraudseizure+1 more
Five U.S. Senators—Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald Riegle (D-MI)—meet with Federal Home Loan Bank Board officials to pressure them to halt regulatory investigation of Charles Keating’s Lincoln Savings and Loan. The senators had …
Alan CranstonDennis DeConciniJohn GlennJohn McCainDonald Riegle+3 morekeating-fiveregulatory-capturecampaign-contributionslincoln-savingssystematic-corruption+1 more
The failure of Empire Savings of Mesquite, Texas exposes systematic “land flip” fraud schemes that would eventually cost taxpayers $300 million. The failure reveals coordinated criminal networks exploiting deregulated thrift powers, including inflated real estate appraisals, circular …
Empire SavingsEdwin GrayFederal Home Loan Bank BoardTexas Real Estate NetworksReagan Administration+1 moreempire-savingsland-flip-frauds&l-crisisedwin-graysystematic-fraud+1 more
Charles Keating, through American Continental Corporation, purchases Lincoln Savings and Loan for $51 million. Exploiting the deregulated environment created by Garn-St Germain, Keating rapidly expands Lincoln’s assets from $1.1 billion to $5.5 billion over four years through high-risk real …
Charles KeatingAmerican Continental CorporationLincoln Savings and LoanKeating Five SenatorsFederal Home Loan Bank Boardcharles-keatinglincoln-savingsfraudkeating-fiveregulatory-capture+1 more
President Reagan signs the Garn-St Germain Depository Institutions Act in the Rose Garden, calling it “the most important legislation for financial institutions in the last 50 years.” The Act removes Depression-era constraints on thrift asset holdings, allows S&Ls to make high-risk …
Ronald ReaganJake Garn (R-UT)Fernand St Germain (D-RI)Chuck SchumerSteny Hoyer+2 morederegulationthrift-industryregulatory-capturereagan-administrations&l-crisis+1 more
The National Housing Act creates the Federal Housing Administration, which immediately implements systematic racial discrimination through mortgage underwriting guidelines. From its first operations in 1934, FHA staff conclude that no loan could be economically sound if the property was located in a …
Federal Housing AdministrationFederal Home Loan Bank BoardU.S. Chamber of Commerceinstitutional-captureracial-oppressionhousing-policysystematic-corruption
President Roosevelt signs the Home Owners’ Loan Act, creating the Home Owners’ Loan Corporation (HOLC) as an emergency response to the mortgage crisis of the Great Depression. Between 1933 and 1936, HOLC refinances approximately one million mortgages (one-tenth of all urban homes with …
Home Owners' Loan CorporationFranklin D. RooseveltFederal Home Loan Bank BoardReal estate appraisersinstitutional-captureracial-oppressionhousing-policyeconomic-strategyhousing