In
the Reagan Bush years, Bush Sr. was the head of the deregulation efforts across
the board, including the savings and loans. The deregulations of the savings
and loans that occurred prior to 1982 with the St. Germane guard bill,
basically opened up the savings and loans to the crooks.S and L’s had
traditionally done home mortgage lending to middle income people.
In the 70’s and 80s there were problems with inflation
Reagan and Bush decided to deregulate S and L’s. This allowed S and L’s to invest and lend their money on anything that they wanted to. It was an open invitation to the criminal element. The mafia was one of the first groups involved in looting the S and L’s in the early 1980’s. The early de-regulation that Bush was in charge of did that. Also, while he was vice president, either Bush or his top aides intervened in the federal regulation of one of the biggest failed savings and loans of the country at that time—Sunrise Savings in Boing Beach Florida. The CEO of Sunrise Savings went up to Bush’s office when he was Vice President and said to get the federal regulators off of his back.The story varies but he either met with Bush or one of Bush’s top aides, C. Boiden Gray, who is currently the White House council. The federal regulators--they were trying to stop Sunrise from throwing their assets away. One week after he met with these people ,the Federal Home Loan Bank Board that regulates S and L’s withdrew a very stringent cease and desist order against sunrise and replaced it with a weak supervisory agreement. A congressional study found that this move cost taxpayers possibly $100 million or more in keeping Sunrise open. Sunrise was then closed down 1 year and half later at a cost to taxpayers of $700 million dollars.There was no Federal Home Loan Bank Board investigation, it was just shut down.
If you look at the major borrowers at Sunrise, you find mafia people, you find CIA people and you find a Houston businessman named John Riddle, who ties into the circle of Houston Businessmen where George Bush comes from and Riddle at this time was involved in the transshipment of arms to the middle east. The top number two official at the home loan bank board Ann Fairbanks was in this meeting with the Sunrise CEO when he was asking him to get the feds off of his back. Her husband at the time, Richard Fairbanks was involved with the state department’s efforts to keep arms from Iran, called operation staunt. He quit a year later and became the Washington lobbiest and lawyer for Iraq and worked with Iraq until Iraq invaded Kuwait. The largest S and L failure in the United States that did not have Federal Home Loan Bank Board Investigation was Hill Financial,in Red Hill Pennsylvania, Sunrise was number two. The number two borrower at Hill financial was John Riddle’s buddy, a Houston builder named Mike Adkinson, who at that time was transshipping arms to the Middle East. So you have a connecting thread of arms to the middle east and savings and loans and Bush’s office was directly involved in keeping Sunrise Savings open and was lending money to John Riddle.
In the 70’s and 80s there were problems with inflation
Reagan and Bush decided to deregulate S and L’s. This allowed S and L’s to invest and lend their money on anything that they wanted to. It was an open invitation to the criminal element. The mafia was one of the first groups involved in looting the S and L’s in the early 1980’s. The early de-regulation that Bush was in charge of did that. Also, while he was vice president, either Bush or his top aides intervened in the federal regulation of one of the biggest failed savings and loans of the country at that time—Sunrise Savings in Boing Beach Florida. The CEO of Sunrise Savings went up to Bush’s office when he was Vice President and said to get the federal regulators off of his back.The story varies but he either met with Bush or one of Bush’s top aides, C. Boiden Gray, who is currently the White House council. The federal regulators--they were trying to stop Sunrise from throwing their assets away. One week after he met with these people ,the Federal Home Loan Bank Board that regulates S and L’s withdrew a very stringent cease and desist order against sunrise and replaced it with a weak supervisory agreement. A congressional study found that this move cost taxpayers possibly $100 million or more in keeping Sunrise open. Sunrise was then closed down 1 year and half later at a cost to taxpayers of $700 million dollars.There was no Federal Home Loan Bank Board investigation, it was just shut down.
If you look at the major borrowers at Sunrise, you find mafia people, you find CIA people and you find a Houston businessman named John Riddle, who ties into the circle of Houston Businessmen where George Bush comes from and Riddle at this time was involved in the transshipment of arms to the middle east. The top number two official at the home loan bank board Ann Fairbanks was in this meeting with the Sunrise CEO when he was asking him to get the feds off of his back. Her husband at the time, Richard Fairbanks was involved with the state department’s efforts to keep arms from Iran, called operation staunt. He quit a year later and became the Washington lobbiest and lawyer for Iraq and worked with Iraq until Iraq invaded Kuwait. The largest S and L failure in the United States that did not have Federal Home Loan Bank Board Investigation was Hill Financial,in Red Hill Pennsylvania, Sunrise was number two. The number two borrower at Hill financial was John Riddle’s buddy, a Houston builder named Mike Adkinson, who at that time was transshipping arms to the Middle East. So you have a connecting thread of arms to the middle east and savings and loans and Bush’s office was directly involved in keeping Sunrise Savings open and was lending money to John Riddle.
The mafia found it as another trough that they could feed at and in on it at the beginning. They knew what deregulation was going to do and they figured out a scheme, and the head of the scheme was a New York Mobster named Mario Renda who went to jail for less than three years. He was convicted in New York, Florid and Kansas City. Renda would collect money from various institutions like pension funds and credit unions, bundle it up into $100,000 bundles so it was covered by federal deposit insurance and then place it in S and L’s all across the country—billions of dollars.{Renda—Long Island Money Broker who brokered deposits to various savings and loans in return for their agreement to loan money to phony companies. Renda and his associates received finder fees of 2 to 6 percent from the loans, many of which went to individuals with strong crime connections who subsequently defaulted on them.Renda Brokered deals to 160 Savings and Loans companies across the country, 104 of which failed.
[Renda also laundered money for CIA National Security Interests through the S and L’s. As a broker, he arranged the laundering of drug money through various S and L’s, for the CIA. He obtained the loans from the same S and L’s and funneled money to the Contras.
[He did this by:] Once he got the money, the deposits, into an S and L, he could basically control them he had a hammer over their head. If they didn’t do with this money what he wanted to he would just pull it out and this was called linked financing. He would place the deposits and then tell the S and L’s to loan the money to his buddies. They would then just rip it off—take the money and rip it off. In Texas we found a Louisiana Mobster named Herman K. Bibi, who was controlling S and L in a different way than Renda and we found BB and Renda together in many many different places across the country—many connections between the two. BB would actually finance the purchase of Savings and Loans by his associates like Don Dixon and Vernon Caroll Kelly at Continental, Jered Woods at Western, Roy Daily at First Savings in East Texas and then he would have a hammer on their head where he would be holding the note on their stock to the S and L so they would do what he wanted to.
Host: This was the continuation of a relationship between powerful people—state, local and national that have been going on for some time.
That’s right—we had a dry run on the S and L for some time. 1970’s—Texas Rent-a-bank scanal. The same people that showed up in S and L ripping off small Texas banks. Doing the same thing—trading bad loans between each other, trading capital stock loans between each other. Herman K. Beebe was in the middle of that. Ben Barnes, his business partner was in the middle of it. Later, Ben Barnes and John Connolly show up as big big borrowers in some of the dirtiest S and L’s in the country. George Alban, another guy that was involved in Savings and Loans was in the Texas Rent-a-Bank scandal. The federal government knew about the rent-a-bank scandal and did an investigation. There was a Savings and Loan in Houston called Surety that a woman named Rose Stewart was in charge of the Federal Regulation of in Washington and she saw Herman K. Beebe, she saw Walter Misshe, she saw Missher’s son-in-law Robert Corson. When these people all got back in the S and L’s five or ten years later, she did nothing and she was then in charge of the office of enforcement of the federal home loan bank board.
Walter Mischer at the very center of –track all of these S and L’s where the money went and you find Mischer and his friends. Hyphenated Texan—Banker-Developer. Poltiical power broker who controlled politicans on all levels. He told the Houston Developers who they were going to donate their campaign money to. He had the third largest bank in Houston—Allied Bank, and used this bank to finance many different things including some of the dirtiest savings and loans in Houston-- Continental Savings, Mainland Savings. Missure knew that the S and L’s were going down the tubes in the early eighties, because he sold a savings and loan that he had—Ben Franklin Savings that had at one time belonged to Lloyd Bensons company.
He ordered all the S and L capital stock loans out of Allied in 1982-1983, so that when these S and L’s failed he wouldn’t be caught holding the bag. In turn, he had many savings and loans helping he and his bank out
Palmer National Bank was the bank that handled the National Endowment For the Preservation of Liberty deposits. It was a front group to send weapons and money to the Contras.
[Renda also laundered money for CIA National Security Interests through the S and L’s. As a broker, he arranged the laundering of drug money through various S and L’s, for the CIA. He obtained the loans from the same S and L’s and funneled money to the Contras.
[He did this by:] Once he got the money, the deposits, into an S and L, he could basically control them he had a hammer over their head. If they didn’t do with this money what he wanted to he would just pull it out and this was called linked financing. He would place the deposits and then tell the S and L’s to loan the money to his buddies. They would then just rip it off—take the money and rip it off. In Texas we found a Louisiana Mobster named Herman K. Bibi, who was controlling S and L in a different way than Renda and we found BB and Renda together in many many different places across the country—many connections between the two. BB would actually finance the purchase of Savings and Loans by his associates like Don Dixon and Vernon Caroll Kelly at Continental, Jered Woods at Western, Roy Daily at First Savings in East Texas and then he would have a hammer on their head where he would be holding the note on their stock to the S and L so they would do what he wanted to.
Host: This was the continuation of a relationship between powerful people—state, local and national that have been going on for some time.
That’s right—we had a dry run on the S and L for some time. 1970’s—Texas Rent-a-bank scanal. The same people that showed up in S and L ripping off small Texas banks. Doing the same thing—trading bad loans between each other, trading capital stock loans between each other. Herman K. Beebe was in the middle of that. Ben Barnes, his business partner was in the middle of it. Later, Ben Barnes and John Connolly show up as big big borrowers in some of the dirtiest S and L’s in the country. George Alban, another guy that was involved in Savings and Loans was in the Texas Rent-a-Bank scandal. The federal government knew about the rent-a-bank scandal and did an investigation. There was a Savings and Loan in Houston called Surety that a woman named Rose Stewart was in charge of the Federal Regulation of in Washington and she saw Herman K. Beebe, she saw Walter Misshe, she saw Missher’s son-in-law Robert Corson. When these people all got back in the S and L’s five or ten years later, she did nothing and she was then in charge of the office of enforcement of the federal home loan bank board.
Walter Mischer at the very center of –track all of these S and L’s where the money went and you find Mischer and his friends. Hyphenated Texan—Banker-Developer. Poltiical power broker who controlled politicans on all levels. He told the Houston Developers who they were going to donate their campaign money to. He had the third largest bank in Houston—Allied Bank, and used this bank to finance many different things including some of the dirtiest savings and loans in Houston-- Continental Savings, Mainland Savings. Missure knew that the S and L’s were going down the tubes in the early eighties, because he sold a savings and loan that he had—Ben Franklin Savings that had at one time belonged to Lloyd Bensons company.
He ordered all the S and L capital stock loans out of Allied in 1982-1983, so that when these S and L’s failed he wouldn’t be caught holding the bag. In turn, he had many savings and loans helping he and his bank out
Palmer National Bank was the bank that handled the National Endowment For the Preservation of Liberty deposits. It was a front group to send weapons and money to the Contras.