Keating Five

The Keating Five (or Keating Five Scandal) refers to a banking scandal in the 1980s which involved Savings and Loans institutions. It resulted from President Reagan's administration's attempt to continue deregulation, in the face of the worsening crisis in the Savings and Loan industries.

Charles Keating was the president of the Lincoln Savings and Loan, which when it failed (1989) took around $2 billion dollars worth of investors' money with it.

Edwin J. Gray, the head of the Federal Home Loan Bank Board, had been approached by three senators to discontinue investigation of the Lincoln S&L. It turned out that those senators had been given combined donations of $1.3 million to their campaign funds from the Lincoln S&L.

The Senate ethics committee concentrated on the five senators involved: Alan Cranston (D, CA); Dennis DeConcini (D, AZ); John Glenn (D, OH); John McCain (R, AZ); and Donald Riegle (D, MI).

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