2pac Shakur
07-30-2008, 01:50 PM
In yet another bizarre development in the saga of CMKX, one of the largest financial frauds in history, Andrew McCain, the son of presumptive Republican presidential candidate John McCain, resigned from the Board of Directors of Henderson, Nevada based Silver State Bank, the bank where hundreds of millions of dollars was deposited as it was stolen from CMKX shareholders.
Almost immediately, the internet began buzzing with rumors and stories, mostly either questioning Silver State’s financial condition or drawing the inevitable comparison to his father’s involvement twenty years ago in the infamous “Keating 5” savings and loan scandal, where federal regulators seized Lincoln Savings and Loan Association of Irvine, California. The senior McCain was rebuked by the Senate Ethics Commission, who concluded that he had and four other senators had tried to hold off a government investigation into the savings and loan’s risky real estate deals. Lincoln’s chairman at the time was Charles Keating, who was not only one of McCain’s top donors, but was a business partner with Cindy McCain.
But the younger McCain, who had only been with Silver State Bank for a little over four months after Choice Bank, where McCain was director, was taken over by Silver State, might have to answer questions of his own. Silver State Bank has its own history of problems, and it appears that Andrew McCain either ignored the bank’s past woes, or didn’t properly research the company before joining the Board of Directors.
Just two months ago, one of the bank’s executive vice-presidents resigned after the company reported a massive loss for the first quarter of 2008, which the company blamed largely on the deteriorating real estate market. The bank recently announced plans to raise an additional $40 million in capital, which could be a problem, since their share price has dropped over 95% in the past year, from a high of $19.48 to July 29th’s closing price of $1.18. Their market cap has fallen from $275 million to less than $17 million. At today’s closing price, that $40 million in additional capital will more than triple the company’s current number of outstanding shares.
There’s more…a lot more. Andrew McCain served on the bank’s Audit Committee, which means his responsibilities included, according to the company’s bylaws, an understanding of finance and accounting:
“All of the members of the Audit Committee must have a basic understanding of finance and accounting and be able to read and understand fundamental financial statements. At least one member of the Audit Committee must be an audit committee financial expert, as determined by the Board, consistent with the applicable rules and regulations of the Securities and Exchange Commission and the applicable rules and regulations of the stock exchange on which the Corporation’s shares are listed.”
http://www.faulkingtruth.com/Articles/BlogFest/1097.html
McCain backers should've learned their lesson from the Keating scandal.
Bizness as usual.
Almost immediately, the internet began buzzing with rumors and stories, mostly either questioning Silver State’s financial condition or drawing the inevitable comparison to his father’s involvement twenty years ago in the infamous “Keating 5” savings and loan scandal, where federal regulators seized Lincoln Savings and Loan Association of Irvine, California. The senior McCain was rebuked by the Senate Ethics Commission, who concluded that he had and four other senators had tried to hold off a government investigation into the savings and loan’s risky real estate deals. Lincoln’s chairman at the time was Charles Keating, who was not only one of McCain’s top donors, but was a business partner with Cindy McCain.
But the younger McCain, who had only been with Silver State Bank for a little over four months after Choice Bank, where McCain was director, was taken over by Silver State, might have to answer questions of his own. Silver State Bank has its own history of problems, and it appears that Andrew McCain either ignored the bank’s past woes, or didn’t properly research the company before joining the Board of Directors.
Just two months ago, one of the bank’s executive vice-presidents resigned after the company reported a massive loss for the first quarter of 2008, which the company blamed largely on the deteriorating real estate market. The bank recently announced plans to raise an additional $40 million in capital, which could be a problem, since their share price has dropped over 95% in the past year, from a high of $19.48 to July 29th’s closing price of $1.18. Their market cap has fallen from $275 million to less than $17 million. At today’s closing price, that $40 million in additional capital will more than triple the company’s current number of outstanding shares.
There’s more…a lot more. Andrew McCain served on the bank’s Audit Committee, which means his responsibilities included, according to the company’s bylaws, an understanding of finance and accounting:
“All of the members of the Audit Committee must have a basic understanding of finance and accounting and be able to read and understand fundamental financial statements. At least one member of the Audit Committee must be an audit committee financial expert, as determined by the Board, consistent with the applicable rules and regulations of the Securities and Exchange Commission and the applicable rules and regulations of the stock exchange on which the Corporation’s shares are listed.”
http://www.faulkingtruth.com/Articles/BlogFest/1097.html
McCain backers should've learned their lesson from the Keating scandal.
Bizness as usual.