KEATING5: "More than 21,000 mostly elderly investors lost their life savings" at Keating's bank,

[ProgressiveEconomist]

due to apparent fraud that induced many to switch to non-FDIC-insured certificates. Some of those 21,000 who were not elderly in 1989 may still be alive.

Newbie DUer carpentreman just proposed (at http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x7187846 ) a "Keating 5 victims for truth" 527, but that thread is sinking for some reason. I've turned my post there into its own thread, here.

What do you think?

From http://en.wikipedia.org/wiki/Keating_Five :

"Lincoln stayed in business; from mid-1987 to April 1989, its assets grew from $3.91 billion to $5.46 billion. <6> During this time, the parent American Continental Corporation was desperate for cash inflow to make up for losses in real estate purchases and projects. <17> Lincoln's branch managers and tellers convinced customers to replace their federally-insured certificates of deposit with higher-yielding bond certificates of American Continental; the customers later said they were never properly informed that the bonds were uninsured and very risky given the state of American Continental's finances. <17> Indeed the regulators had already adjudged the bonds to have no solvent backing. <12> Federal Deposit Insurance Corporation chair L. William Seidman would later write that Lincoln push to get depositors to switch was "one of the most heartless and cruel frauds in modern memory." <12> American Continental went bankrupt in April 1989, and Lincoln was seized by the FHLBB on April 14, 1989. <4>

More than 21,000 mostly elderly investors lost their life savings. This total came to about $285 million. The federal government was liable for $2 billion to cover Lincoln's losses when it seized the institution. <17>"

[electron_blue]

1. thanks!

[ProgressiveEconomist]

4. Thank YOU! Let's keep driving traffic to carpentrer's post.

IMO, the more Keating 5 threads, the better to crowd out divisive posts from the front page.

[AllieB]

2. Thank you.

We can't let the Keating 5 fiasco be swept under the rug.

[Window]

3. K/R.

:kick:

[chill_wind]

5. K & R

[FrenchieCat]

6. Kick!