General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHere's a thought gleaned from my experience:
Many years ago in the 1980s I treated the lawyer who was ultimately responsible for what was the first major Savings and Loan collapse which presaged the crisis, Sunrise Savings and Loan. The situation made not local, not national, but international news. This guys name was in every major paper and tv network in the world, and I was in the middle of major treatment of him and his wife.
Within two days, I had seen them both and Im going to give you the story, well rehearsed, that they gave me:
This has all been good news for us and our firm. We have many people who are enlisting our services for themselves and we had to take the phones off the hook because we cant handle the business. All this media-based nonsense will pass. Nothing illegal happened and even if we are indicted no jury would ever find against us. We are American heroes who are smarter and shrewder than anyone else.
Well, you know what happened with the S and L crisis
this particular fellow supervised the disappearance of over $400,000,000 and it was just the very beginning of the nightmare. But the lesson to be learned is that the sociopath, which he was, knows exactly how to manage any event including catastrophe. Thats TFGs methodology-hes saying that multiple indictments will catapult him into the WH.
As a post-script: the lawyer/banker I talked about is living in abject poverty, never had a good day again.
Meadowoak
(6,069 posts)Youre almost not going to believe this, but by the time the Feds got their act together, the statute of limitations ran out.
Meadowoak
(6,069 posts)BSdetect
(9,047 posts)his other crimes are numerous but he ought to pay for telling his followers it was a hoax.
erronis
(16,727 posts)Robert Jacoby and Thomas Skubal
The other S&L scandals seemed to be more publicized, but they were all due to lax regulation. And here we are, once again.
https://en.wikipedia.org/wiki/Savings_and_loan_crisis
When the problem became apparent, after the Federal Reserve increased interest rates, some S&Ls took advantage of lax regulatory oversight to pursue highly speculative investment strategies. This had the effect of extending the period where some S&Ls were likely technically insolvent. These actions also substantially increased the economic losses for many S&Ls than would otherwise have been realized had their insolvency been dealt with earlier.[4] One extreme example was that of financier Charles Keating, who paid $51 million financed through Michael Milken's "junk bond" operation, for his Lincoln Savings and Loan Association which at the time had a negative net worth exceeding $100 million.[5]
PCIntern
(26,744 posts)He had convinced his friends to invest in Sunrise. He died like six weeks after the story broke of a massive heart attack.
liberalla
(9,878 posts)Mainly because they're in Philadelphia and associated with the Sunrise Savings and Loan. I'm not guessing as to which lawyer, but I'm sure their dental work was excellent.
The Federal Savings and Loan Insurance Corp. yesterday announced a $50 million settlement with a Philadelphia company, the largest ever paid by a law firm to FSLIC to settle a claim.
The settlement with Blank, Rome, Comisky & McCauley was in connection with various charges against the law firm stemming from its representation of Sunrise Savings and Loan Association of Boynton Beach, Fla.
"This settlement demonstrates that where violations contributing to insolvency are caused by the negligence or malpractice of professionals, including law firms, the bank board will hold them, as well as thrift management, fully responsible and accountable," said M. Danny Wall, chairman of the Federal Home Loan Bank Board.
snip
A Sept. 2, 1986, complaint filed by the FSLIC charges that as former counsel of Sunrise, Blank Rome acted negligently in advising Sunrise, improperly closed loans, aided former Sunrise officials in violating several statutes and banking regulations and represented parties with conflicts of interest. The Blank Rome settlement was filed with the U.S. District Court for the Eastern District of Pennsylvania, where all the Sunrise lawsuits have been consolidated.
ETA:
I do not expect confirmation on my guess, and I certainly don't expect PCIntern to identify his former patient. He has ETHICS after all!
PCIntern
(26,744 posts)One of the funniest things I heard about all of this, was it the principal whom I was discussing was despised by virtually every other member of the firm. They were so thrilled more than anything else to hear that he could not go to the bathroom, even ask, without requesting permission from David Girard-DiCarlo, who was the managing partner. I have never seen such glee on peoples faces.
liberalla
(9,878 posts)to the firm through the very difficult time... Ha!