madcat033
12-07-2007, 10:27 PM
I have finals next week and right now I'm studying for my auditing exam. We are reading about past accounting scandals and frauds, so we can understand the mistakes that auditors made and what happened that allowed the fraud to occur. Look at what I found in my textbook regarding a company called Lincoln Savings and Loan:
The most serious charges leveled at Keating involved allegations of influence peddling. Keating contributed heavily to the election campaigns of five prominent senators, including John Glenn and John McCain. These five senators, who became known as the Keating Five, met with federal banking regulators and allegedly lobbied for favorable treatment for Lincoln Savings and Loan...
Keating made the following remarks during a press conference: "One question, among the many raised in recent weeks, has to do with whether my financial support in any way influenced several political figures to take up my cause. I want to say in the most forceful way I can: I certainly hope so."
McCain lobbied for this guy to get favorable treatment to help him perpetrate his fraud. What Keating essentially did was create fake profits for Lincoln Savings and Loan, which allowed him to take REAL money out of the corporation. "The gains recorded by Lincoln on its real estate transactions allowed ACC [Keating's company] to withdraw huge sums of cash from the savings and loan, funds that were actually federally insured deposits."
So essentially, they were stealing money from the government. McCain seems to be big on eliminating pork and wasteful spending, yet he helped this guy steal millions from the taxpayers?
Oh, and there's more. Look at who else is involved:
Keating also hired Alan Greenspan to represent Lincoln before the FHLBB shortly before Greenspan was appointed to the powerful position of chairman of the Federal Reserve Board. In a legal brief submitted to the FHLBB, Greenspan reported that Lincoln's management team was "seasoned and expert" and that the savings and loan was a "financially strong institution that presents no foreseeable risk to depositors or the government."
The textbook emphasizes those points because they had just spent the previous several pages talking about how Lincoln was doomed to failure because of all these fraudulent activities and fake profits. Not only that, but Greenspan calls the management "seasoned and expert" when in reality that was a lie. Keating handpicked his son to be the president of Lincoln Savings and Loan, an impressive job title with a salary of $1 million. What were his qualifications? Well, he was a high school graduate and college dropout who was working as a busboy before he became president. "Years later, the younger Keating testified that he did not understand many of the transactions he signed off on as Lincoln's president." Ya think?
Why are all these bastards so corrupt?
The most serious charges leveled at Keating involved allegations of influence peddling. Keating contributed heavily to the election campaigns of five prominent senators, including John Glenn and John McCain. These five senators, who became known as the Keating Five, met with federal banking regulators and allegedly lobbied for favorable treatment for Lincoln Savings and Loan...
Keating made the following remarks during a press conference: "One question, among the many raised in recent weeks, has to do with whether my financial support in any way influenced several political figures to take up my cause. I want to say in the most forceful way I can: I certainly hope so."
McCain lobbied for this guy to get favorable treatment to help him perpetrate his fraud. What Keating essentially did was create fake profits for Lincoln Savings and Loan, which allowed him to take REAL money out of the corporation. "The gains recorded by Lincoln on its real estate transactions allowed ACC [Keating's company] to withdraw huge sums of cash from the savings and loan, funds that were actually federally insured deposits."
So essentially, they were stealing money from the government. McCain seems to be big on eliminating pork and wasteful spending, yet he helped this guy steal millions from the taxpayers?
Oh, and there's more. Look at who else is involved:
Keating also hired Alan Greenspan to represent Lincoln before the FHLBB shortly before Greenspan was appointed to the powerful position of chairman of the Federal Reserve Board. In a legal brief submitted to the FHLBB, Greenspan reported that Lincoln's management team was "seasoned and expert" and that the savings and loan was a "financially strong institution that presents no foreseeable risk to depositors or the government."
The textbook emphasizes those points because they had just spent the previous several pages talking about how Lincoln was doomed to failure because of all these fraudulent activities and fake profits. Not only that, but Greenspan calls the management "seasoned and expert" when in reality that was a lie. Keating handpicked his son to be the president of Lincoln Savings and Loan, an impressive job title with a salary of $1 million. What were his qualifications? Well, he was a high school graduate and college dropout who was working as a busboy before he became president. "Years later, the younger Keating testified that he did not understand many of the transactions he signed off on as Lincoln's president." Ya think?
Why are all these bastards so corrupt?