Keating Five

The Keating Five scandal emerged during the savings and loan crisis of the 1980s when it was revealed that five prominent U.S. senators had received campaign contributions totaling $1.3 million from Charles H. Keating Jr., chairman of Lincoln Savings and Loan Association. The senators—John McCain of Arizona, John Glenn of Ohio, Alan Cranston of California, Dennis DeConcini of Arizona, and Donald Riegle of Michigan—subsequently met with federal banking regulators to question their investigation of Keating's financial institution.

The scandal began to unfold in 1987 when the senators attended meetings with regulators from the Federal Home Loan Bank Board, expressing concerns about the agency's treatment of Lincoln Savings. Critics alleged that the senators had engaged in improper influence peddling, using their positions to benefit a major campaign contributor. The regulatory pressure appeared to delay closure of the failing institution by two years, ultimately increasing taxpayer losses.

When Lincoln Savings collapsed in 1989, it became the most expensive thrift failure in American history, costing taxpayers $3.4 billion. The Senate Ethics Committee conducted a lengthy investigation, concluding in 1991. Alan Cranston received the harshest penalty—a formal reprimand—while the others received lesser sanctions ranging from mild rebukes to findings of poor judgment.

The scandal significantly impacted American politics, contributing to campaign finance reform discussions and highlighting the corrupting influence of special interest money. John McCain, who received the mildest sanction, later became a leading advocate for campaign finance reform, co-sponsoring the McCain-Feingold Act. The case established new precedents for congressional ethics enforcement and public scrutiny of legislative-industry relationships.