I found this gem of a story online at – MotherJones http://www.motherjones.com/news/feature/1992/09/bushboys.html  – see excerpt below.

It’s one of many out there on the net regarding shady dealings and the S&L crisis. It accurately portrays a story of how connections, money, power and fraud helped fleece American taxpayers. What do you think – has anything really changed?  

************************************************************************************************************************** 

<START>

After graduating from Texas University, Jeb Bush served a short apprenticeship at the Venezuelan branch of Texas Commerce Bank in Caracas before settling in Miami, in 1980, to work on his father’s unsuccessful primary bid against Ronald Reagan. Campaigning for Dad was hardly a paying job. But Jeb was about to learn that being one of George Bush’s sons means never having to circulate a résumé.

In the next few years, financial support flowed to Jeb through Miami’s right-wing Cuban community. Republican party politics and a series of business scandals — including Medicaid fraud and shady S&L deals — were inextricably intertwined. A former federal prosecutor told MJ that, when he looked into Jeb’s lucrative business dealings with a now-fugitive Cuban, he considered two possibilities — Jeb was either crooked or stupid. At the time, he concluded Jeb was merely stupid.

Shortly after arriving in Miami, Jeb was hired by Cuban-American developer Armando Codina to work at his Miami development company as an agent leasing office space. A couple of years later, Jeb and Codina became business partners, and in 1985 they purchased an office building in a deal partly financed by a savings and loan that later failed.

The $4.56 million loan, from Broward Federal Savings in Sunrise, Florida, was granted in such a way that neither Codina’s nor Bush’s name appeared on the loan papers as the borrowers. A third man, J. Edward Houston, borrowed the $4.56 million from Broward and then re-lent it to the Bush partnership. When federal regulators closed Broward Savings in 1988, they found the loan, which had been secured by the Bush partnership, in default.

As Jeb’s father was finishing his second term as vice-president and running for the presidency, federal regulators had two options: to get Jeb Bush and his partner to repay the loan, or to foreclose on their office building. But regulators came up with a third solution. After reappraising the building, regulators decided it wasn’t worth as much as was owed for it. The regulators reduced the amount owed by Bush and his partner from $4.56 million to just $500,000. The pair paid that amount and were allowed to keep their office building. Taxpayers picked up the tab for the unpaid $4 million.

<END> 

********************************************************************************************************************** Isn’t That Special?

The S&L crisis cost American taxpayers approximately $500 BILLION dollars. Numerous scams were pulled off by some and their ilk who took advantage of and manipulated the use of power, position and connections – sound familiar? It’s been said that more than 75% of the Savings and Loan insolvencies were directly linked to serious criminal misconduct by senior financial insiders & less than 10% of bank failures were related to economic conditions.  

Is anyone else out there connecting the dots (S&L, ENRON, HUD, FNMA, FHLMC, Bear Stearns, etc. etc. )?  

 

Advertisements