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Bring in former obama economic adviser robert wolf, founder and ceo of 32 advise isers, also a fox news contributor. so when comparisons are made to the banking industry collapse in 2008, what s your response? i think it s absolutely nothing similar. i was running ubs at the time. i was there at the lehman weekend. this is not going to cause global contagion. these are not the largest bank withs in the world globally having issues with meetingly equiedty. meet liquidity. the leverage in the system is night and day. this is a situation where a bank took in deposits, it grew too fast, it doubled its assets in a year even though its market cap got halved in a year. and with the assets, they went out and purchased long-term treasuries and long-term mortgages and other things and had a mismatch on their assets and their liabilities, more so to the s&l crisis in the 80s ....
We always do. it s just a question of when. my guess is it s probably 1989, rather than 1987. a little present for the new president. presidents always seem to manage to get that as their gift after the inaugurals. i promise you, if congress tries to raise taxes when i m president, and you know they will, i ll say no. they ll try one more time and i ll say no. and if they try a third time, i ll stare them right in the eye and i m going to say to them, read my lips. no new taxes! in 1988, george h.w. bush is running to take on the reagan mantle. read my lips, no new taxes. when ronald reagan left the white house in january, he also left george bush holding the ball, filled with an assortment of staggering problems. when the president calls, some come running. all agree the savings and loan crisis is an urgent problem. could the s&ls be bailed out without a tax increase? ....
how much is your debenture? you really want to know? it was $30,000 and for us, that was quite a bit. capitalize on this, the bond salesmen were told. the weak, meek, and ignorant are always good targets. the regulators were looking at this and saying, this guy is a disaster, man, we have got to stop this. but by that time, keating had a construction company in arizona. he had thrifts in california. his tentacles spread out to several states. so he was able to call on congressmen and senators and say, hey, get these dogs off my back. this morning, the s&l crisis goes to capitol hill. the senate ethics committee is looking into charges against five senators accused of intervening with federal banking officials on behalf of charles keating. the so-called keating five are republican john mccain and democrats alan cranston, john ....
we re watching the breaking news on the floor of the united states senate right now. we re watching and they re close to a deal. close but not there yet. in the meantime, there are some procedural votes under way on the floor of the united states senate. we want to welcome our viewers here in the united states and around the world. i m wolf blitzer reporting from washington. gloria borger, our chief political analyst, is here as well. we have our correspondents standing by on capitol hill as well as over at the white house. but gloria, let s set the scene right now. just saw live here on cnn an extraordinary exchange between senator dick durbin, the democrat from illinois, been a majority whip, the number two democrat in the united states senate, and john mccain, a republican senator from arizona. he was the republican presidential candidate back in 2008. and it was a perfect way to set the scene for this debate that s unfolding, the stakes, the economic stakes for the ....