The Clinton Herald, Clinton, Iowa

National News

April 2, 2014

Savings and loan figure Charles Keating dies at 90

PHOENIX — Charles H. Keating Jr., the notorious financier who served prison time and was disgraced for his role in the costliest savings and loan failure of the 1980s, has died. He was 90.

A person with direct knowledge of the death confirmed on Tuesday that Keating had died but didn't provide further details. The person wasn't authorized to release the information and spoke on condition of anonymity.

When Keating's Phoenix-based home construction company, American Continental Corp., bought Lincoln Savings & Loan in 1984, the multimillionaire elevated its worth from $1.1 billion to $5.5 billion in a four-year period.

But his financial empire crumbled with state and federal convictions for defrauding investors. Keating allegedly bilked Lincoln customers by selling them $200 million of unsecured "junk" bonds. They became worthless when Keating's company became bankrupt.

The thrift's collapse cost taxpayers $2.6 billion and tarnished the reputations of five senators who became known as the "Keating Five." One of them was Republican U.S Sen. John McCain of Arizona, and the scandal re-entered the spotlight during the 2008 presidential campaign.

As the public heard testimony of elderly bondholders who had lost their life savings, Keating became a national poster boy for corporate greed. Keating was convicted in both state and federal court, but the convictions were thrown out and he agreed to a federal plea deal that freed him after nearly five years in prison.

Though Keating insisted he was a symbol of the common man, he was known more for an extravagant lifestyle. Keating received $19.4 million in salary, stock purchases and other compensation over five years, ending in 1988. His company provided luxuries like the use of a $5 million refurbished Florida estate. The corporation picked up the tab for lavish events like a 1986 Christmas party at which nearly $2,000 was spent on Silly String alone.

Text Only
National News
  • U.S. warns against traveling to Ebola-hit countries

    U.S. health officials on Thursday warned Americans not to travel to the three West African countries hit by an outbreak of Ebola.

    August 1, 2014

  • State Dept: 'No American is proud' of tactics

    The State Department has endorsed the broad conclusions of a harshly critical Senate report on the CIA’s interrogation and detention practices after the 9/11 attacks, a report that accuses the agency of brutally treating terror suspects and misleading Congress, according to a White House document.

    July 31, 2014

  • Rodden, Danny.jpg Indiana sheriff accused of lying about relationship with prostitute

    The sheriff of Clark County, Ind., faces an eight-count federal indictment that accuses him of lying about paying a prostitute for a sex act and giving her a badge so that she could claim a discount rate at a hotel.

    July 30, 2014 1 Photo

  • 20140727-AMX-GUNS271.jpg Beretta, other gun makers heading to friendlier states

    In moving south and taking 160 jobs with it, Beretta joins several other prominent gunmakers abandoning liberal states that passed tough gun laws after the Newtown shooting.

    July 29, 2014 1 Photo

  • Fast food comes to standstill in China

    The shortage of meat is the result of China's latest food scandal, in which a Shanghai supplier allegedly tackled the problem of expired meat by putting it in new packaging and shipping it to fast-food restaurants around the country

    July 29, 2014

  • Medicare hospital fund to last 4 years longer

    Medicare's finances are looking brighter, the government said Monday. The program's giant hospital trust fund won't be exhausted until 2030 — four years later than last year's estimate.

    July 28, 2014

  • After 6 weeks, finally a deal on VA health care

    After more than six weeks of sometimes testy talks, House and Senate negotiators have agreed on a compromise plan to fix a veterans health program scandalized by long patient wait times and falsified records covering up delays.

    July 28, 2014

  • Brother sues W.Va. senator over business loan

    U.S. Sen. Joe Manchin III faces a $1.7 million civil suit filed by a brother over a lifeline to save a family carpet business.

    July 25, 2014

  • Official: Hospital gunman intended to kill others

    A psychiatric patient ranted about a hospital gun ban before opening fire at the suburban medical complex, killing his caseworker and grazing his psychiatrist before the doctor pulled out his own weapon and fired back, authorities said Friday.

    July 25, 2014

  • 10 things to know for today

    Your daily look at late-breaking news, upcoming events and the stories that will be talked about today:

     

    July 25, 2014

AP Video
Facebook