Keating Five

Published: 1990
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District of Columbia Mayor Marion Barry and his wife Effi watch as Soviet leader Mikhail Gorbachev arrives at the White House on May 31, 1990. Barry’s drug trial begins on June 4, 1990. (UPI Photo/Cliff Owen/Files)

Howard Dicus: We've come a long way since the Reagan years, but goals to politics past hung around 1990. Federal Prosecutor, Dan Webb said this after Ronald Reagan's National Security Advisor was convicted of Iran-Contra crimes.

Dan Webb: High men in government office are not to be allowed to commit crimes to pursue their own self interest.

Howard Dicus: But in an Appeal's Court, threw out the Iran-Contra conviction of out of the North. Congress heard revelatory testimony about favoritism of handing out of housing grants in the Reagan years. DuBois Gilliam told live under Housing Secretary Samuel Pierce.

DuBois Gilliam: As the the department of housing and development was the best political machine I have ever seen. And we dealt strictly politics.

Howard Dicus: The insider traders were prosecuted in 1990. Andy Pollin called us from the court house in New York when Junk bond king Michael Milken, cop a plea.

Andy Pollin: Milken voiced cracked as he pleaded guilty to six felony counts of security of law violations. He has agreed to pay $200 million in fines and turnover $400 million to the securities and exchange commission. Afterwards he broke down and cried.

Howard Dicus: Milken thought he would get community service, but instead got a few years in prison. There was also a surprise in store for accused savings in loans when Charles Keating, Bob Fuss in Los Angeles was on hand for that one.

Bob Fuss: Even though the district attorney indicated Keating could be released on his own recognizance, the judge citing the seriousness of the case ordered Keating jail, ending the posting of $5 million bail.

Howard Dicus: Keating was behind bars for weeks until bail was reduced. Another accused S&Ls figure was Neil Bush the President's son. A director of a Denver thrift who said he warned the man who hired him that he was honest.

Neil Bush: “I made it very clear that if he expected me to be on the board for political influence or for lobbing or for anything other than what the normal responsibilities would be of an outsider director, he could forget it.“

Howard Dicus: But what Neil Bush did do was support having the S&L and money to his own business partner. The year ended with sick S&Ls mostly stabilized, but with officials predicting the bail out would cost taxpayers more than the second World War.