Scandals / Banking / U.S.

Brewton, Pete. The Mafia, CIA, and George Bush. New York: S.P.I. Books (Shapolsky Publishers), 1992. 418 pages.

Beginning in 1990, an assortment of articles from the Houston Post found their way into NameBase. In them Pete Brewton described organized crime and CIA connections surrounding the major players in the savings and loan failures, primarily in Texas but also in Florida and California. Brewton met with resistance, first from the Post's lawyers and then, when he expanded the series into a manuscript, from Simon & Schuster. Brewton quit the Post, enrolled in law school, and took his manuscript elsewhere.

The Post series and book are loaded with names of Texas-size wheeler- dealers, but it's circumstantial. There's a little bit on Lloyd Bentsen and sons, a bit more on George Bush and sons, even more on slick operators who appear to be CIA assets, and more still on Mafia-connected deals that involve property flipping as a cover for fraudulent loan schemes using federally-insured funds (your tax dollars). The names come from the records of state and federal agencies and courts, as well as newspaper clippings. The book's title is misleading, as the book itself leaves the impression that this is all business-as-usual for greedy Texans. But unless NAFTA returns the territory to Mexico, where certain Banana Republic of Texas businesses might have more room to deal, it's worthwhile trying to track these fun folks. In that sense, Brewton's contribution is significant.


Mayer, Martin. The Greatest-Ever Bank Robbery: The Collapse of the Savings and Loan Industry. New York: Charles Scribner's Sons, 1990. 354 pages.

Martin Mayer was a member of the finance committee of the President's Commission on Housing beginning in 1981, and has written nearly a dozen books on business and finance, including the bestselling "The Bankers" (1975). In 1982, Congress passed the Garn-St.Germain Act, which tended to deregulate the savings and loans. Until then the industry concentrated on the community-based home-mortgage business, but now it was free to speculate. Getting the cash for these new, risky investments presented no problem, because the federal government still insured all deposits. The U.S. Treasury had to cough up $500 billion to get out of this mess.

Despite the witty humor, it requires fortitude to wade through this book's alphabet soup of regulatory agencies, mixed with esoteric financial instruments pushed by Wall Street sharks. Mayer's conclusion is that deposit insurance was the "crack cocaine of American finance" -- once good old American greed was deregulated, the door was open for massive abuse. Who got the money? Wall Street investment houses got most of it, depositors got some of it because of high interest rates, and the Mafia types and Texas cowboys came in third. Who's to blame? The accounting profession was dishonest, and big-name law firms bullied the regulators. In the end, their S & L clients had plenty of time to convert deposits into questionable investments.


Pizzo, Stephen; Fricker, Mary; and Muolo, Paul. Inside Job: The Looting of America's Savings and Loans. New York: McGraw-Hill, 1989. 443 pages.

These authors, two of whom are associated with the National Thrift News in New York, have put together an award-winning account of the Great S & L Heist. This is a tale of a seven-year period during which "a greedy network of swindlers, mobsters, S & L executives, and con men have capitalized on regulatory weaknesses created by deregulation and have thoroughly fleeced the thrift industry."

On October 15, 1982 Ronald Reagan invited 200 people to witness the signing of the Garn-St.Germain Act, which canceled much of the S & L regulation of the last 50 years. "All in all, I think we've hit the jackpot," he told his appreciative audience. Ten years later Charles Keating is in jail, the people he robbed will never recover their money, and the "Keating Five" (Senators Cranston, DeConcini, Glenn, McCain, and Riegle) are still making excuses. There's every indication that the next generation will pay heavily for the 1980s.

More quality financial reporting like this is needed in America. White-collar crime and violations of the public trust may not provide the sort of footage that improves ratings on the evening news, but they do more than their share of the damage. Use a pen, go to jail.

Here are the names most frequently mentioned in the above books:

    ADKINSON MIKE     ALEXANDER TOM     AMERICAN CONTINENTAL CORPORATION     AMERICAN DIVERSIFIED SAVINGS BANK     ANDERSON JOHN B (LAS VEGAS)     ANDERSON ROBERT ORVILLE     ANGOTTI OTTAVIO A     ANNUNZIO FRANK (D-IL)     ARTHUR ANDERSEN COMPANY     ARTHUR YOUNG COMPANY     ATCHISON JACK     ATKINSON JACK D     ATLANTIC AVIATION     AUBIN GEORGE JOHN     AZIMA FARHAD     BAKER JAMES A III     BALL EDWARD     BALLIS JOHN     BANKERS TRUST NEW YORK CORPORATION     BARCLAY GEORGE M     BARKER TYRELL     BARNARD DOUG JR (D-GA)     BARNES BEN F     BARTH JAMES R     BASS ROBERT MUSE     BATH JAMES R     BAZARIAN CHARLES     BEALL GILBERT     BEAZLEY DONALD E     BEEBE HERMAN K SR     BEILENSON ANTHONY C (D-CA)     BELIN JAKE C     BELLAMAH COMPANY     BEN-MENASHE ARI     BENNETT ARCHIE     BENSTON GEORGE     BENTSEN LAN     BENTSEN LLOYD M JR (D-TX)     BINDER RICHARD     BIRBRAGHER FERNANDO     BLACK WILLIAM K     BLAIN SPENCER H JR     BLAKEMORE WILLIAM BLANTON II     BLOOM THOMAS     BOBB ROBERT J     BOESKY IVAN FREDERICK     BONA JACK     BOSCO DOUGLAS     BOWMAN L LINTON III     BREEDEN RICHARD C     BRENNEKE RICHARD J     BREWTON PETE     BRIAN EARL W     BRIGHT HARVEY R (BUM)     BROWN MITCHELL     BROWNSTEIN NORMAN     BRUMBAUGH R DAN JR     BUCKNER EMORY     BUFFALO AIRWAYS     BUREAU INDIAN AFFAIRS     BURGIN DAVID     BUSH GEORGE H.W.     BUSH JOHN E (JEB)     BUSH NEIL MALLON     BYRNE CHRISTOPHER (KIP)     CAGE JOSEPH     CAPALDI LEONARD     CARDASCIA CARL     CARUANA SALVATORE MICHAEL     CASE FRED     CASEY WILLIAM JOSEPH     CASTELLANO PAUL (BIG PAUL)     CASTLE BANK     CASTRO FRANK (EULALIO FRANCISCO)     CHANNELL CARL RUSSELL (SPITZ)     CHARLES CLEMARD JOSEPH     CIRONA JAMES     CIVELLA NICHOLAS     CLARKE ROBERT L     CLEMENTS WILLIAM PERRY JR     CLINE RAY STEINER     COELHO TONY (D-CA)     COMMERCIAL HELICOPTERS     CONNALLY JOHN BOWDEN (B.1917-02-27)     CORONA RAFAEL L     CORONA RAY L     CORSON PAULA MISCHER     CORSON ROBERT L     CRANSTON ALAN (D-CA)     CRAWFORD WILLIAM (S & L COMMISSIONER)     CROCKER DONALD W     CROCKER DOUGLAS II     CURLEE DURWARD     DAILEY ROY     DAILY SAM     DALITZ MOE B (MORRIS)     DAVIS MARVIN HAROLD     DE CARLO JOSEPH SR     DE CONCINI DENNIS (D-AZ)     DE MOHRENSCHILDT GEORGE S     DE VOE JACK     DE VORE JACK (LLOYD BENTSEN AIDE)     DELVECCHIO ANTHONY     DICK JOHN W     DIOGUARDI JOHN (JOHNNY DIO)     DIXON DON R     DOCHOW DARREL     DOE SAMUEL K     DOMINGUES FRANK J     DONOFRIO RAMON     DORFMAN ALLEN M     DOVER RICHARD E     DREXEL BURNHAM LAMBERT     DRIGGS GARY     EDWARDS EDWIN W     EGYPTIAN-AMERICAN TRANSPORT SERVICE COMPANY     ELKINS JAMES ANDERSON JR     EVERGREEN INTERNATIONAL AVIATION     FAIRBANKS ANN SHANNON OCONNOR     FAULKNER DANNY L     FAY ALBERT BEL     FEDERAL DEPOSIT INSURANCE CORPORATION     FERNANDEZ JOSE ANTONIO     FERRANTE ROBERT (IRVING CA)     FERTITTA TILMAN JOSEPH     FIHN JAY     FINANCIAL ACCOUNTING STANDARDS BOARD     FINANCIAL CORPORATION AMERICA     FIRST GIBRALTAR SAVINGS     FIRST WESTERN AVIATION     FORD WILLIAM (FIRST NATIONWIDE)     FRATIANNO JIMMY     FREEMAN LAWRENCE A (MIAMI)     FRICKER MARY     FRIEDMANN DAVID A     FULBRIGHT JAWORSKI (LAW FIRM)     GARCIA E.C.     GARMAN BILLIE JEAN     GARMAN WILLIAM L     GARN JAKE (R-UT)     GAUBERT THOMAS M     GLAUBER ROBERT R     GLENN JOHN H (D-OH)     GLOBAL INTERNATIONAL AIRWAYS     GODBOLD TOM     GONZALEZ HENRY B (D-TX)     GOOD KENNETH M     GORDON JERRY     GORWITZ DAVID T     GOULD GEORGE D     GOULET VICTOR     GRAFFAGNINO ANTHONY J     GRAVEL CAMILLE     GRAY EDWIN J     GRAY JONATHAN E     GREEN ROY (FHLB DALLAS)     GREENSPAN ALAN J     GRIGSBY MARY     GROSZ JOSEPH     HAASS MARVIN     HAGUE JAMES D     HAILEY JOSEPH     HAINES BEVERLY     HALL CRAIG     HALPER STEFAN A     HAMILTON LYMAN C     HANSEN ERWIN (ERV)     HARALSON J B     HARPER RICHMOND CHASE     HARVEY RAYMOND SIDNEY RICHARD     HATCH ORRIN G (R-UT)     HAYNES CHARLES F JR     HEIMANN JOHN GAINES     HELLERMAN MICHAEL C     HELLIWELL PAUL LIONEL EDWARD     HEMMINGS A BRUCE     HENKEL LEE H JR     HERNANDEZ CARTAYA GUILLERMO     HESS LEOTA MEYER     HILL FINANCIAL SAVINGS     HILL RAYMOND (HOUSTON)     HITCHCOCK WILLIAM MELLON     HOFFA JIMMY (JAMES RIDDLE)     HOLLEY JERRY     HORNER CONSTANCE J     HOURANI MONZER ADEEB     HOVDE DONALD I     HULL JOHN FLOYD     HURWITZ CHARLES E     IORIZZO LAWRENCE S     ISAAC WILLIAM M     JAFFE DOUG     JAFFE MORRIS DOUGLAS     JENKINS CARL E     JENSON NORMAN B     KANTER BURTON WALLACE     KEATING CHARLES H JR     KELLY CARROLL     KESSLER MURRAY MORRIS     KHASHOGGI ADNAN     KIDWELL KENNETH     KIRK DONALD J     KLEIN THEODORE (LAWYER)     KNAPP CHARLES (TRAFALGAR HOLDINGS)     KOHN AARON M     KWITNY JONATHAN     LAPAGLIA JOHN     LEMASTER WILLIAM EVERETT     LINDNER CARL HENRY JR     LINDSAY JON (HOUSTON)     LUCE GORDON     LUNA DONALD E     LYON JAMES E (JIMMY)     MAFFEO BRUCE     MALLICK GEORGE A     MANN J.SCOTT     MANNING MICHAEL (KANSAS CITY LAWYER)     MARCELLO CARLOS     MARTIN ROGER (BANK BOARD)     MARTORELLI RONALD J     MAYER MARTIN     MAYHEW ALICE E     MCBIRNEY EDWIN T III     MCCAIN JOHN S III (R-AZ)     MCKENNA WILLIAM     MCLEAN HARVEY D JR     MECOM JOHN W JR     MEESE EDWIN     MERRILL LYNCH COMPANY     MILKEN MICHAEL ROBERT     MISCHER WALTER M SR     MIZEL LARRY     MONROE LLOYD     MOSBACHER ROBERT ADAM     MOWBRAY KERMIT     MURCHISON CLINT WILLIAM JR     NEMOURS FOUNDATION     NEVIS TOM     NEWTON WAYNE     NORTH OLIVER L     NORTHROP WILLIAM     OCONNELL WILLIAM BUTLER     OLANO GUY     PALMER NATIONAL BANK     PATRIARCA MICHAEL     PAULS WILLIAM     PELULLO LEONARD A     PERELMAN RONALD OWEN     PHILLIPS GENE E     PIGA SALVATORE     PIZZO STEPHEN     PLUMLEE W ROBERT     POPEJOY WILLIAM     POSNER VICTOR     POWERS MEL     PRATT RICHARD T     PREVOT ALBERT     PROXMIRE WILLIAM (D-WI)     PULVER HOWARD     RAIDEN NORMAN H     REEDER G WAYNE     REGAN DONALD T     REGGIE EDMUND     REIFLER LIONEL J     RENDA MARIO     RESOLUTION TRUST CORPORATION     RIDDLE JOHN     RIEGLE DONALD W JR (D-MI)     RIZZO JILLY     ROBERTS JOHN H JR     ROBERTSON WILLIAM L     ROBINSON PETER (U.S.ATTORNEY)     ROGERS BEN J     ROGERS VICTOR J SR     ROOT STUART D     ROSS VAUGHN R (BOBBY)     ROSSMILLER RICHARD     RUPP HEINRICH F     RUSSO ANTHONY (KANSAS CITY LAWYER)     RUSSO JOE (HOUSTON)     SAAB SALIM     SAHADI ROBERT     SAHNI RANBIR     SAMOS STEVEN SANDOR     SANDMANN NICHOLAAS     SCHNITZER KENNETH     SCHWAB PHILIP B     SCHWIMMER MARTIN     SCOTT STEVE (BANK EXAMINER)     SEAL BARRY     SEAY GREGORY     SEIDMAN L WILLIAM     SELBY H JOE     SHAH SIDDHARTH     SHENKER MORRIS     SIMON SCHUSTER     SIMS REBECCA     SKYWAY AIRCRAFT LEASING     SMITH BARNEY (SECURITIES FIRM)     SMITH WILLIAM (MICHAEL RAPP ASSOCIATE)     SODERLING JAY     SOUTHERN AIR TRANSPORT     SOUTHMARK INC     ST.GERMAIN FERNAND J (D-RI)     STARNES E TRINE     STEWART ROSEMARY     STOCKMAN DAVID A     STRAUSS RICHARD     STRAUSS ROBERT S     STRUNK NORMAN     SUNSHINE STATE BANK     SUSALA SCOTT     TAGGART LAWRENCE W     TANNER R B     TAPER MARK     TERRY HOWARD L     TESSLER ALLAN J     THYGERSON KEN     TOUCHE ROSS COMPANY     TRAFFICANTE SANTO JR     TROTTER JOHN TILLMAN     TWETTEN THOMAS ALAN     UNITED STATES LEAGUE SAVINGS INSTITUTIONS     VARTANIAN THOMAS P     VERNON SAVINGS LOAN     VINEYARD LAWRENCE B     VOLCKER PAUL ADOLPH     WALL M DANNY     WALLINGFORD RUFUS     WALTERS WILLIAM L     WARNER MARVIN     WEILAND S CASS     WHEATON M GENE     WHITE CHARLES W (BILL)     WHITE HAROLD D (MIAMI)     WHITE LAWRENCE J     WINKLER FRANKLIN     WINKLER V LESLIE     WISE MICHAEL R     WOODS JARRETT E JR     WRIGHT JIM (JAMES C JR D-TX)     WYLIE DAVID     YARBROW AL

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