1989CRIME
1989 Congressional Committee Hearing about the Savings and Loan Bank scandal and failure in 1989
See Reel AFC-741
See Reel AFC-741
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| 01:00:00 0 |
Reel opens - Congressional Hearings regarding the Lincoln Savings and Loan Bank scandal. - NO AUDIO
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| 01:00:01 1.26 |
Low audio, officials, a Mr. Randall, preparing to testify before the Congressional Committee.
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| 01:00:44 44.4 |
Z'across the room to the Chairman of the Congressional Committee, Mr. Henry Gonzalez - he bangs the gavel and orders the Committee to please come to order. He asks the Clerk unseen to call the roll. Committee member names can be heard in roll call.
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| 01:01:29 89.3 |
z'across room from Mr. Gonzalez to the table of defendants. Pan in and out from defendant's table. Audience in background. Pan in to close ups of Mr. Randall. He smiles for the camera, as roll call ensues.
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| 01:02:32 152.33 |
WS audience with presumably lawyers and defendants seated in the first row.
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| 01:02:57 177.83 |
Several cu's Mr. Randall and z'in and out from the Congressional panel and Mr. Gonzalez to the defendants' table.
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| 01:04:02 242.81 |
Chairman Gonzalez announces the start of the hearings and explains the hearings to be one of the most complex and costly regulatory failures of the savings and loans industry. He states the 'sad fact' that the warning signals were there in plenty of time to prevent much of the loss. However, the Federal Home Loan Bank Board instead ignored the signals and let it continue until it crashed taking the public's money with it. Gonzalez states that in "May of 1987 after a 16 months of examination of Lincoln, the Federal Home Loan Bank of San Francisco recommended the institution be placed in conservatorship or receivership, or placed under a binding cease and desist order"...
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| 01:05:42 342.18 |
Gonzalez continues to read from his notes and explains that instead, the Federal Home Loan Bank Board of San Francisco shut. Removed from further examination of Lincoln, the owner Mr. Charles Keating met privately with Danny Wall the new Director of the Federal Home Loan Bank without the supervisory personnel of the San Francisco Bank. As a result of that meeting - "no conservatorship, and no cease and desist" occurred...
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| 01:06:13 373.86 |
Mr Gonzalez continues and states that the Board in Washington executed a "memorandum of understanding" with Mr. Keating - "heavy on understanding and light on enforcement"...
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| 01:06:37 397.76 |
Gonzalez still reading from his notes states the Federal Home Loan Bank Board had decided Lincoln "deserved a second chance"...and a third chance! In the meantime Lincoln continued to experience and run up the losses. Finally in 1989 Wall finally placed Lincoln under conservatorship - almost 24 months and up to $2Billion in losses.
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| 01:07:40 460 |
Gonzalez still reading states, ..."the answers vary about why the cops on the beat were pulled off in the middle of the night..." He further states that hopefully when the hearings are complete they will have some answers that will meet a new "credibility test, or at least a 2 Billiion Dollar test"...
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| 01:08:36 516.03 |
Jumpy camera pans across the room from Gonzalez and back to Gonzalez as he announces and introduces the witness about to testify today, Mr. Bill Steedman. Gonzalez further states that Steedman moved quickly to save what he could and filed legal actions to recover the maximum amount for the insurance fund and the taxpayers. Gonzalez emphasizes the committee has just voted
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| 01:09:30 570 |
Gonzalez emphasizes the committee has just voted in legislation that may just exceed $300 Billion to rescue the savings and loan industry. He states the blame is wide spread and "includes a lack of ongoing tough Congressional oversight"..."Lincoln is a case history of regulation gone wrong" . He stresses, it is Congress' responsibility to make sure this doesn't happen again.
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| 01:12:52 772.32 |
Mr. Gonzalez introduces Mr. Wiley, the rank and minority member of the Committee. Wiley talks into mic. reading from his notes, and states among other things that it will be interesting to determine how much Lincoln's activities were permitted under California State law. He talks about the many earlier warnings signs and states the losses related to the failure of Lincoln have been anywhere between 1 and 2 Billion Dollars. He sums up by telling the Chairman that the Committee must find out through the hearing why Lincoln was able to stay in business so long and why so many unusual regulatory moves were made to treat Lincoln differently than any other institutions.
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| 01:16:51 1011 |
Gonzalez asks the witness to rise and raise his right hand. Pan across to the witness who stands with his right hand raises and swears to give honest testimony.
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| 01:18:06 1086.57 |
z'across room from Gonzalez to the witness, Mr. William Seidman, Chairman of the Resolution Trust Corporation. He introduces Mr. William Role and Mark Randall who were in charge of the Lincoln issue. He reads from his notes that they wish to see the losses related to Lincoln are reduced to a minimum and they have recently filed suit to recover monies due to the Lincoln estate and the RTC.
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| 01:19:14 1154.53 |
Z'in to CU of Mr. Seidman as he reads and also addresses the Committee's four specific concerns: The financial condition of the institution at the time the FDIC was appointed as conservator; the FDIC's assessment of the prior management of the institution; practices of prior management that contributed to its failure; and their analysis of the supervisory history of Lincoln Savings with an emphasis on how supervisory efforts can be improved.
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| 01:19:48 1188.43 |
Mr. Seidman then proceeds to address all four specific concerns.
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| 01:29:41 1781.49 |
End
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| 01:31:43 1904 |
Reel End. Lincoln Banking Savings and Loan Scandal - Congressional Hearings
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