Banking Scandals: The S&Ls and Bcci (Reference Shelf)

136 Pages·1993·3.938 MB·English

by  Robert Emmet Long (editor)

Banking Scandals:
The S & LS and BCCI
Edited by Robert Emmet Long

B

THE
REFERENCE
SHELF

BANKING SCANDALS:
THE S&LS AND BCCI
Edited by ROBERT EMMET LONG
THE REFERENCE SHELF
Volume 65, Number 3
THE H. W. WILSON COMPANY
New York 1993
THE REFERENCE SHELF
The books in this series contain reprints of articles, excerpts from books,
and addresses on current issues and social trends in the United States and
other countries. There are six separately bound numbers in each volume,
all of which are generally published in the same calendar year. One num¬
ber is a collection of recent speeches; each of the others is devoted to a
single subject and gives background information and discussion from
various points of view, concluding with a comprehensive bibliography that
contains books and pamphlets and abstracts of additional articles on the
subject. Books in the series may be purchased individually or on subscrip¬
tion.
Library of Congress Cataloging-in-Publication Data
Banking scandals : the S&Ls and BCCI / edited by Robert Emmet Long,
p. cm. — (The reference shelf ; v. 65, no. 3)
Includes bibliographical references.
ISBN 0-8242-0842-0
1. Savings and loan associations—United States—Corrupt
practices. 2. Savings and Loan Bailout, 1989— 3. Bank of Credit
and Commerce International—Corrupt practices. I. Long, Robert
Emmet. II. Series.
HG2151.B36 1993
364.1 '68—dc20 93-16882
CIP
Cover: Shortly after the First American Bank for Savings was seized by
regulators, a bank employee posts a sign informing depositors that
their savings are insured.
Photo: AP/Wide World Photos
Copyright © 1993 by The H. W. Wilson Company. All rights reserved.
No part of this work may be reproduced or copied in any form or by
any means, including but not restricted to graphic, electronic, and
mechanical—for example, photocopying, recording, taping, or
information and retrieval systems—without the express written
permission of the publisher, except that a reviewer may quote and a
magazine or newspaper may print brief passages as part of a review
written specifically for inclusion in that magazine or newspaper.
Printed in the United States of America
CONTENTS
Preface. 7
I. The Savings & Loan Scandal: Background
and Overview
Editor’s Introduction. 9
Lenny Glynn. Who Really Made the S&L Mess? .
.Dissent 11
James K. Glassman. The Great Banks Robbery .
.The New Republic 22
Howard Rudnitsky. Good Timing, Charlie .Forbes 35
Editorial Article. House of Ill-Repute.
.The New Republic 40
II. Controversy and Bailout
Editor’s Introduction. 44
Tom Fennell. The Wages of Greed .. . Maclean’s 45
Susan Dentzer. Is the Real Scandal Ahead?.
.U.S. News & World Report 48
Catherine Yang. The Thrift Bailout is Headed for
Rougher Water .Business Week 52
Terence P. Pare. How to Hold Down S&L Losses .
.Fortune 55
III. Exposure of the BCCI Scandal
Editor’s Introduction. 62
Caught in the Money-Laundry Wringer.
.U.S. News & World Report 63
Gail DeGeorge. Gambling Big to Nail Noriega.
.Business Week 65
5
6 The Reference Shelf
Marci McDonald. A Bank of Scandal .Maclean’s 69
John Greenwald. Feeling the Heat.Time 74
Jonathan Beaty. Not Just a Bank .Time 79
IV. A Network of Deception
Editor’s Introduction. 86
Christopher Byron. The Big Muddy.New York 87
John Schwartz. Morgenthau’s Mission.Newsweek 92
Tom Morganthau. The CIA and BCCI .Newsweek 95
Christopher Byron. BCCI and Iran/Contra .... New York 99
Rob Norton. Lessons from BCCI .Fortune 104
Bibliography
Books and Pamphlets . 109
Additional Periodical Articles with Abstracts . Ill