Charles Keating Jr. (1923-2014) was an American businessman, lawyer, real estate developer, banker, financier, conservative activist, and convicted felon. He gained notoriety for his role in the savings and loan scandal of the late 1980s, which resulted in the collapse of Lincoln Savings and Loan Association and significant losses for investors and taxpayers.
Key Facts
- Charles Keating Jr. was born on December 4, 1923, and passed away on March 31, 2014.
- He was an American businessman, lawyer, real estate developer, banker, financier, conservative activist, and convicted felon.
- Charles Keating was best known for his role in the savings and loan scandal of the late 1980s.
- He ran American Continental Corporation and the Lincoln Savings and Loan Association, which faced financial problems and were investigated by federal regulators.
- Keating’s financial contributions to and requests for regulatory intervention from five sitting U.S. senators led to those legislators being dubbed the “Keating Five”.
- In 1990, Lincoln Savings and Loan failed, costing the federal government over $3 billion and leaving many customers with worthless bonds.
- Charles Keating was convicted in both federal and state courts of fraud, racketeering, and conspiracy related to the savings and loan scandal.
- He served four and a half years in prison before those convictions were overturned in 1996.
- In 1999, Keating pleaded guilty to a more limited set of wire fraud and bankruptcy fraud counts and was sentenced to the time he had already served.
- Charles Keating spent his final years in low-profile real estate activities until his death in 2014.
Early Life and Career
Charles Keating was born on December 4, 1923, in Cincinnati, Ohio. He studied law at the University of Cincinnati College of Law and went on to become a successful attorney and businessman. In the 1950s, he became involved in the real estate industry and founded American Financial Corporation, a holding company with various subsidiaries. Keating was also a prominent anti-pornography activist and led the Citizens for Decent Literature organization.
Involvement in the Savings and Loan Crisis
In the 1980s, Keating expanded his business interests into the savings and loan industry. He acquired Lincoln Savings and Loan Association in 1984 and engaged in risky lending practices that contributed to the savings and loan crisis. Keating’s aggressive tactics, including the sale of high-yield junk bonds and investments in speculative real estate projects, led to the failure of Lincoln Savings and Loan in 1990. The collapse of the thrift institution cost the federal government over $3 billion and left many customers with worthless bonds.
Political Connections and the Keating Five Scandal
Keating’s involvement in the savings and loan crisis was further complicated by his political connections. He made substantial campaign contributions to several U.S. senators, including Alan Cranston, Dennis DeConcini, John Glenn, John McCain, and Donald Riegle. These senators, known as the “Keating Five,” intervened with federal regulators on Keating’s behalf in an attempt to prevent the closure of Lincoln Savings and Loan. The scandal surrounding Keating’s influence over these senators further fueled public outrage over the savings and loan crisis.
Legal Consequences and Later Life
In the aftermath of the Lincoln Savings and Loan collapse, Keating faced numerous legal challenges. He was convicted in both federal and state courts of fraud, racketeering, and conspiracy related to the scandal. Keating served four and a half years in prison before his convictions were overturned on appeal in 1996. In 1999, he pleaded guilty to a more limited set of wire fraud and bankruptcy fraud counts and was sentenced to the time he had already served. Keating spent his final years in low-profile real estate activities until his death in 2014.
Conclusion
Charles Keating’s involvement in the savings and loan scandal of the 1980s left a lasting impact on the financial industry and the public’s trust in the government’s oversight of financial institutions. His actions contributed to the collapse of Lincoln Savings and Loan, resulting in significant losses for investors and taxpayers. Keating’s political connections and the subsequent Keating Five scandal further eroded public confidence in the integrity of the political system. Despite his legal troubles, Keating maintained his innocence until his death, claiming that he was a victim of a government witch hunt.
Sources
- Britannica, The Editors of Encyclopedia. “Charles Keating.” Encyclopedia Britannica, Encyclopedia Britannica, Inc., 2023, www.britannica.com/biography/Charles-Keating.
- “Charles Keating.” Wikipedia, Wikimedia Foundation, 24 Dec. 2022, en.wikipedia.org/wiki/Charles_Keating.
FAQs
When was Charles Keating born and when did he die?
Answer: Charles Keating was born on December 4, 1923, and passed away on March 31, 2014.
What was Charles Keating’s involvement in the savings and loan scandal?
Answer: Keating was the owner of Lincoln Savings and Loan Association, which failed in 1990 due to risky lending practices. The collapse of Lincoln Savings and Loan cost the federal government over $3 billion and left many customers with worthless bonds.
What was the Keating Five scandal?
Answer: The Keating Five scandal involved five U.S. senators who intervened with federal regulators on behalf of Charles Keating in an attempt to prevent the closure of Lincoln Savings and Loan. The scandal led to accusations of political influence and corruption.
What were the legal consequences for Charles Keating?
Answer: Keating was convicted in both federal and state courts of fraud, racketeering, and conspiracy related to the savings and loan scandal. He served four and a half years in prison before his convictions were overturned on appeal in 1996. In 1999, he pleaded guilty to a more limited set of wire fraud and bankruptcy fraud counts and was sentenced to the time he had already served.
What did Charles Keating do after the savings and loan scandal?
Answer: Keating spent his final years in low-profile real estate activities until his death in 2014.
Was Charles Keating ever exonerated of the charges against him?
Answer: Keating’s convictions were overturned on appeal in 1996, but he pleaded guilty to a more limited set of charges in 1999.
What was Charles Keating’s role in the anti-pornography movement?
Answer: Keating was a prominent anti-pornography activist and led the Citizens for Decent Literature organization.
What was Charles Keating’s legacy?
Answer: Keating’s legacy is complex and controversial. He was a successful businessman and financier, but his involvement in the savings and loan scandal and the Keating Five scandal tarnished his reputation.