Difference between revisions of "Lincoln Savings"
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Revision as of 13:45, 26 July 2016
 Lincoln Savings    | |
|---|---|
| Parent organization | American Continental Corporation |
| Interest of | Charles Sanford |
| An infamous part of the multi-billion dollar Savings and loan fraud. | |
Lincoln then became headed by Charles Keating, who as chairman of a housing construction company, American Continental Corporation, purchased Lincoln in February 1984 for $51 million.[1] Keating fired the existing management and over the next four years, Lincoln's assets increased from $1.1 billion to $5.5 billion.[1]
Bankruptcy
When American Continental Corporation, the parent of Lincoln Savings, went bankrupt in 1989, more than 21,000 mostly elderly investors lost their life savings. This total came to about $285 million, largely because such investors held securities backed by the parent company rather than deposits in the federally insured institution, a distinction apparently lost on many if not most of them until it was too late.[2] The federal government covered almost $3 billion of Lincoln's losses when it seized the institution. Many creditors were paid back, and the government then attempted to liquidate the seized assets through its Resolution Trust Corporation, often at pennies on the dollar compared to what the property had allegedly been worth and the valuation at which loans against it had been made.
Exposure
Pete Brewton has been active in attempting to expose the Savings and loan fraud, but even decades after the event, it remains poorly understood.[3] Mark Lombardi made diagrams about Charles Keating and Lincoln Savings.
