Keating Five
The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger savings and loan crisis of the late 1980s and early 1990s. The five senators—Alan Cranston (Democrat of California), Dennis DeConcini (Democrat of Arizona), John Glenn (Democrat of Ohio), John McCain (Republican of Arizona), and Donald W. Riegle, Jr. (Democrat of Michigan)—were accused of improperly intervening in 1987 on behalf of Charles H. Keating, Jr., Chairman of the Lincoln Savings and Loan Association, which was the target of a regulatory investigation by the Federal Home Loan Bank Board (FHLBB). The FHLBB subsequently backed off taking action against Lincoln.
Lincoln Savings and Loan collapsed in 1989, at a cost of $3.4 billion to the federal government (and thus taxpayers). Some 23,000 Lincoln bondholders were defrauded and many investors lost their life savings. The substantial political contributions Keating had made to each of the senators, totaling $1.3 million, attracted considerable public and media attention. After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Cranston, DeConcini, and Riegle had substantially and improperly interfered with the FHLBB's investigation of Lincoln Savings, with Cranston receiving a formal reprimand. Senators Glenn and McCain were cleared of having acted improperly but were criticized for having exercised "poor judgment".
All five senators served out their terms. Only Glenn and McCain ran for re-election, and they both retained their seats. McCain would go on to run for President of the United States twice, and was the Republican Party nominee in 2008. McCain was the last senator remaining in his office before his death in August 2018.
Much of the press attention to the Keating Five focused on the relationships of each of the senators to Keating.
Cranston had received $39,000 from Keating and his associates for his 1986 Senate re-election campaign.[4] Furthermore, Keating had donated some $850,000 to assorted groups founded by Cranston or controlled by him, and another $85,000 to the California Democratic Party.[4] Cranston considered Keating a constituent because Lincoln was based in California.[35]
DeConcini had received about $48,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] In September 1989, after the government sued Keating and American Continental for improper actions regarding contributions, DeConcini returned the money.[41] DeConcini considered Keating a constituent because Keating lived in Arizona; they were also long-time friends.[35]
Glenn had received $34,000 in direct contributions from Keating and his associates for his 1984 presidential nomination campaign, and a political action committee tied to Glenn had received an additional $200,000.[4] Glenn considered Keating a constituent because one of Keating's other business concerns was headquartered in Ohio.[35]
McCain and Keating had become personal friends following their initial contacts in 1981,[11] and McCain was the only one of the five with close social and personal ties to Keating.[42][43] Like DeConcini, McCain considered Keating a constituent since Keating lived in Arizona.[35] Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates.[44] In addition, McCain's wife Cindy McCain and her father Jim Hensley had invested $359,100 in the Fountain Square Project, a Keating shopping center, in April 1986, a year before McCain met with the regulators.[7][45] McCain, his family, and their baby-sitter had made nine trips at Keating's expense, sometimes aboard Keating's jet; three of the trips were made during vacations to Keating's Bahamas retreat at Cat Cay.[7] McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln.[7][46]
Riegle had received some $76,000 from Keating and his associates for his 1988 Senate re-election campaign.[4] Riegle would announce in April 1988 that he was returning the money.[6] Riegle's constituency connection to Keating was that Keating's Hotel Pontchartrain was located in Michigan.[35]
https://en.wikipedia.org/wiki/Keating_Five