McCain and Keating: ‘Till Death Do Us Part’

Background: McCain was one of five Senators implicated in the Keating Five scandal, accused of improperly intervening on behalf of the powerful Lincoln Savings and Loan Association chaired by Charles Keating. Keating’s Savings and Loan was under investigation, and regulators were recommending that due to unsound lending practices that were going to cost taxpayers billions, it should be shut down and seized by the government. Keatings’ Savings and Loan funneled $1.3 million to the five Senators’ campaigns. The Senate Ethics Committee investigated, and reprimanded three of the Senators. McCain was found to have exercised “poor judgment” for meeting with the federal regulators on Keating’s behalf. McCain defended his actions, “I have done this kind of thing many, many times,” and said the Lincoln case was like “helping the little lady who didn’t get her Social Security.” Of the five Senators, McCain was the only one who had close personal and social ties to Keating. Cindy McCain and her father invested $359,100 in one of Keating’s projects. McCain and his family made nine trips at Keating’s expense, three to Keating’s Bahamas resort and sometimes using Keating’s jet. The Senate Ethics committee did not pursue anything against McCain for failing to repay Keating those expenses until years later because it did not have jurisdiction, since those acts occurred while McCain was a Representative. The Phoenix New Times has labeled McCain the “most reprehensible” of the Keating Five Senators. The President of Common Cause was disgusted that the five Senators were let off the hook so easily, declaring, “The U.S. Senate remains on the auction block to the Charles Keatings of the world.” Several government reports implied that information during the investigation had been leaked from McCain to the press, which was damaging to three of the other Senators. The GAO investigator said, “There is absolutely no doubt in my mind that McCain made those leaks. (from http://en.wikipedia.org/wiki/Keating_Five )

The Love Affair Between McCain and one of the Most Slimy Savings and Loan Chairmen in History

In 1986 John McCain wrote a political note – on official House of Representatives stationary - apologizing to Charles H. Keating Jr. for his campaign having listed his good friend and supporter as part of McCain’s Senate campaign finance committee.

Keating responded with a handwritten note – addressed to “senator,” seven months before McCain won his Senate seat – telling him not to sweat it, “I’m yours till death do us part.”

The back-and-forth came when McCain was still in the House but seeking a Senate seat, and the year before he and a handful of other senators met with banking regulators on behalf of Keating.

McCain wrote: “As you know, I am deeply appreciative of your friendship and support over the years, and I would not want to do anything which would offend you. Please accept my apology, and be assured that there will be no future repetition of this kind.”

Six days later Keating sent a handwritten note back assuring McCain he has done, and can do, no wrong.

“Don’t be silly. You can call me anything, write anything or do anything. I’m yours till death do us part.”

It’s another window into the close ties between the two men, which continue to dog McCain in his current campaign.

McCain has acknowledged extensive ties to Keating, who through fundraisers helped funnel $166,000 in campaign contributions to McCain for his 1982 and 1984 House races and his 1986 Senate race. McCain and his family also vacationed with the Keatings, and later had to reimburse Keating for the flights, acknowledging he violated House rules by not disclosing them.

He was rebuked by the Senate Ethics Committee for the appearance of conflict of interest for attending the meetings with bank regulators.

Reprinted from the http://www.washingtontimes.com/weblogs/dinan/2008/oct/09/mccain-and-keating-till-death-do-us-part/