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View Full Version : Elections John McCain's Son was Director of Silver State Bank, Nation's 11th to Fail This Year


jAZ
09-08-2008, 11:04 PM
http://www.reuters.com/article/vcCandidateFeed7/idUSN0530678420080906

Silver State is 11th failed bank this year
Sat Sep 6, 2008 2:52am EDT
By John Poirier

WASHINGTON (Reuters) - Silver State Bank, which recently included Republican presidential candidate John McCain's son on its board, was closed by regulators on Friday, becoming the 11th bank to fail this year, as the struggling economy and falling home prices take their toll on financial institutions.

Andrew McCain, whom Senator John McCain adopted in a previous marriage, formerly served as a director of the Henderson, Nevada, bank, which was closed by Nevada state officials and taken over by the Federal Deposit Insurance Corp.

Andrew McCain sat on Silver State's board in February and served on the audit committee, bank regulatory filings show.

He resigned in July due to "personal reasons," the bank said. He previously served as a director of Choice Bank in Scottsdale, Arizona, from 2006 to April 2008 when Choice Bank merged with Silver State.

His involvement in the bank during the current credit and housing problems is a reminder of his father's alleged role in the massive savings and loans scandal decades ago.

In the late 1980s John McCain was one of five senators known as the "Keating Five." They were investigated by Congress over their alleged roles in the crisis, which resulted in a U.S. taxpayer bailout.

They were accused of aiding Charles Keating, who was the chairman of the failed California-based Lincoln Savings and Loan Association. McCain and another senator, John Glenn, were cleared in the Senate Ethics Committee investigation.

On Thursday John McCain accepted the Republican Party's presidential nomination. He and his running mate Alaska Gov. Sarah Palin are battling Democrat Barack Obama and his vice presidential running mate Joe Biden for the White House.

SBK
09-08-2008, 11:05 PM
I think it was #9 that was from here in Atlanta called "Integrity Bank".....I've told my wife for years I'd never deposit money there because if you have to sell your integrity you don't have any. Turns out I was pretty smart. (that time anyway) :)

Logical
09-08-2008, 11:18 PM
Unless John bailed him out or found a way for congress to bail him out this does not matter.

orange
09-08-2008, 11:26 PM
He was there from Feb. to July. - FIVE FULL MONTHS!!

I'm sure he was KEY to the bank's tumbling fortunes the last four years.

Mr. Flopnuts
09-08-2008, 11:28 PM
Let's not bitch because a candidate has a bum for a kid. Especially since it hasn't even been 8 years since we elected one to POTUS. Twice.

jAZ
09-08-2008, 11:30 PM
This is why (adult) family members aren't off limits, IMO. Family connections are always *potential* danger zone for political influence... and there are a lot of potential ways to get crossways in this sort of case.

HOWEVER...

Andrew's role as Director should be scrutinized not because of his father but because of the bank's failure and the tax-payers potential role in mitigating shareholder losses.

It's an obvious area for investigators to look into in the course of normal investigations of the failure.

jAZ
09-08-2008, 11:31 PM
He was there from Feb. to July. - FIVE FULL MONTHS!!

I'm sure he was KEY to the bank's tumbling fortunes the last four years.

"He previously served as a director of Choice Bank in Scottsdale, Arizona, from 2006 to April 2008 when Choice Bank merged with Silver State

J Diddy
09-08-2008, 11:33 PM
Unless John bailed him out or found a way for congress to bail him out this does not matter.


agreed

orange
09-09-2008, 12:23 AM
"He previously served as a director of Choice Bank in Scottsdale, Arizona, from 2006 to April 2008 when Choice Bank merged with Silver State

Just the Board, though. NOT the audit committee.

jAZ
09-09-2008, 12:34 AM
Just the Board, though.
ROFL

orange
09-09-2008, 12:40 AM
ROFL

That means he didn't have any day-to-day responsibilities (like approving loans, etc.) in case you don't know.

Hell, why did I bother saying "in case." It's obvious you DON'T know what you're talking about - you're just spamming in random attacks from every left-wing blog out there.

SBK
09-09-2008, 12:48 AM
That means he didn't have any day-to-day responsibilities (like approving loans, etc.) in case you don't know.

Hell, why did I bother saying "in case." It's obvious you DON'T know what you're talking about - you're just spamming in random attacks from every left-wing blog out there.

LMAO

jAZ
09-09-2008, 12:58 AM
That means he didn't have any day-to-day responsibilities (like approving loans, etc.) in case you don't know.

Hell, why did I bother saying "in case." It's obvious you DON'T know what you're talking about - you're just spamming in random attacks from every left-wing blog out there.
Have you ever actually been involved in managing a corporation?

This isn't some city council advisory board.

This is the governing board. The audit committee is a sub-committee of the board of directors and reports out to the full board.

And that's both the point and the problem given the insider nature of modern pubilc boards of directors.

They are often a bit of an insider shell game given that their loyalty is often more to the current CEO than the current investors directly (see CEO being Board Chair).

That Andew McCain was on the Audit Committee when he resigned from the board a month or so before it collapsed is a huge red-flag in and of itself.

That you try to trivialize the role of a Director in a public (and in this case highly regulated) company... suggests you might want to skip this thread.

orange
09-09-2008, 01:04 AM
He (McCain) was on the Audit Committee - at Silver State NOT at Choice Bank.

He was on that Committee for only FIVE MONTHS.

You yourself tried to DEFLECT the simple, ridiculous idea that McCain had anything to do with Silver State's years-long decline by bringing up Choice Bank.

"He previously served as a director of Choice Bank in Scottsdale, Arizona, from 2006 to April 2008 when Choice Bank merged with Silver State

Once again - McCain WAS NOT on the Audit Committee at Choice Bank... or was he? Maybe you've got some information about that?

jAZ
09-09-2008, 01:09 AM
He (McCain) was on the Audit Committee - at Silver State NOT at Choice Bank.

He was on that Committee for only FIVE MONTHS.

You yourself tried to DEFLECT the simple, ridiculous idea that McCain had anything to do with Silver State's years-long decline by bringing up Choice Bank.



Once again - McCain WAS NOT on the Audit Committee at Choice Bank... or was he? Maybe you've got some information about that?
You really don't know what you are talking about do you.

You should probably just back out.

orange
09-09-2008, 01:13 AM
Alright, YOU TELL ME:

Exactly WHAT is the importance/meaning/relevance/hidden message here that poor, ignorant fools like me are missing?

Did Andrew McCain run Silver State or Choice Bank into the ground?

Was there some nefarious lawbreaking going on?

Just WHAT is this "red-flag" you claim McCain's resignation sent?

jAZ
09-09-2008, 01:29 AM
Alright, YOU TELL ME:

Exactly WHAT is the importance/meaning/relevance/hidden message here that poor, ignorant fools like me are missing?

Did Andrew McCain run Silver State or Choice Bank into the ground?

Was there some nefarious lawbreaking going on?

Just WHAT is this "red-flag" you claim McCain's resignation sent?
Fair enough.

For the record, I'm heading to bed after this, so just know that in advance.

1) I have no idea what was going on there. At this point there's noting mentioned that suggests there was anything other than basic incompetence at work here and the general failure/corruption of many boards of directors generally.

2) The audit committee is the sub-group of the board who's job is to study in detail the financial workings of the company and report the findings to the board on a routine (quarterly) basis. Their role is to know what's going on in detail. That Andrew resigned his position on the board of a bank that collapsed due to finanical mis-mangement shortly after his resignation suggests that he was running from the fallout. Most likely not for nefarious reasons, but purely for political reasons.

3) Members of the board of directors of any company are elected to act as the governors of the corporation. That means they decide, approve and support the strategic decisions of the corporation. They hire and fire the day to day operators (CEO's and often other offices as well).

4) A huge role of the BOD, especially in banking, is risk aversion and mitigation. They review and authorize the sort of big picture strategic choices lead to changes in day to day policies. In this case the BOD most assuredly knew about and authorized the changes in lending practices that lead to riskier loans that were based upon faulty assumptions.

So you suggestion that Andrew was only a Director and not on the Audit Committee in all those years makes it clear that you didn't know what you were talking about. Beyond that, you (nor I) know what committees he was on at the first bank. He might likely have been on the Audit committee of both boards. It wouldn't matter though. Because as I said, the "red flag" didn't happen 2 or 3 years ago. It happened at the very end, when he resigned. As a member of the audit committee he's absolutely knew (even if the full board had yet to get the report from the audit committee) exactly what was about to happen. And his jumping ship is a red flag.

But like I said before, he shouldn't be investigated because he's McCain's son. He should be investigated as part of the routine investigation into the collapse of this bank and his role as a director, as a member of the audit committee and as a result of the red-flag that his sudden resignation causes.

orange
09-09-2008, 01:42 AM
Steve Stern, a spokesman for the bank, declined to elaborate on the statement but confirmed that national news reporters have been inquiring about the resignation of Andrew McCain.

Andrew McCain previously was a director of Choice Bank in Scottsdale, Ariz., which Silver State acquired in February. Andrew McCain joined Silver State's board the following month.

He served on the board's audit committee, but the audit committee didn't see financial results for the second quarter until several days after Andrew McCain resigned, Stern said.

http://www.lvrj.com/business/27010914.html

A source close to Andrew McCain said he resigned from the board because he was unable to spend the time needed to deal with challenges at the community bank, particularly after accepting an appointment as chairman of the Greater Phoenix Chamber of Commerce.

"He realized after he had joined (Silver State's board) that, like many regional banks around the country, Silver State faced serious challenges requiring a director that could give it considerable attention," the source said.

"He wanted to make sure that Silver State had a director in that position to deal with the really difficult problems that the bank faces," the source said.

Taylor Griffin, a spokesman for the Republican presidential candidate, said the campaign had no comment on the matter.

In addition to serving as chairman of the Greater Phoenix Chamber of Commerce, Andrew McCain is also chief financial officer of Hensley & Co., a beer distributorship owned by John McCain's wife.

RINGLEADER
09-09-2008, 02:02 AM
Have you ever actually been involved in managing a corporation?

Have you? I'm on the board of numerous companies and while I can't speak for this guy's role I can tell you that being on a board usually entails very little in the way of day-to-day operating responsibilities.

But seriously, have you been involved in managing a large corporation or been a member of a board of directors? Just curious since you seem to think you know something about it.

That you try to trivialize the role of a Director in a public (and in this case highly regulated) company... suggests you might want to skip this thread.

This is a public company? What symbol did they trade under?

RINGLEADER
09-09-2008, 02:04 AM
BTW, this thread has about no relevance to the campaign other than the fact that McCain's adult adopted child was involved in a bank that went under.

Also, I doubt there's any bailing out of this bank using public funds. I'm not sure where you get this stuff.

orange
09-09-2008, 02:04 AM
So you suggestion that Andrew was only a Director and not on the Audit Committee in all those years makes it clear that you didn't know what you were talking about. Beyond that, you (nor I) know what committees he was on at the first bank. He might likely have been on the Audit committee of both boards.

Actually, I DO know that he WASN'T - though I can't prove it (at this time) because the page has been updated.

This link, which I posted on a blog months ago, at the time included Andrew McCain and his job history.

http://www.reuters.com/finance/stocks/companyOfficers?symbol=SSBX.O&viewId=bio

orange
09-09-2008, 02:08 AM
... I'm not sure where you get this stuff.

This thing has been ALL OVER the blogosphere since July when THIS article first went up:

20 Years Later: Another McCain At Center Of Bank Collapse and Government Take-Over?
http://www.politicalbase.com/profile/Mark%20Nickolas/blog/&blogId=2910

Another case of some blogger trying to be the next Drudge chasing phantoms.

RINGLEADER
09-09-2008, 02:11 AM
This thing has been ALL OVER the blogosphere since July when THIS article first went up:

20 Years Later: Another McCain At Center Of Bank Collapse and Government Take-Over?
http://www.politicalbase.com/profile/Mark%20Nickolas/blog/&blogId=2910

Another case of some blogger trying to be the next Drudge chasing phantoms.

I was referring to the assertion that public funds may be used to bail it out. The FDIC will cover the deposits, but that's not exactly the same as saying the bailout will cost anyone money (unlike the Freddie/Fanny fiasco which will).

Ultra Peanut
09-09-2008, 03:58 AM
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ROYC75
09-09-2008, 11:40 AM
I can hear Randy Travis in the background singing ........

Dem's digging up bones, Dem's digging up Bones
Exhuming things that better left alone .......

J Diddy
09-09-2008, 11:40 AM
I can hear Randy Travis in the background singing ........

Dem's digging up bones, Dem's digging up Bones
Exhuming things that better left alone .......

glad you decided to coincide on the board with us today

ROYC75
09-09-2008, 11:45 AM
glad you decided to coincide on the board with us today

Been working on a couple potential accounts...... Biz has been horrible this last month,I need some new accounts.

J Diddy
09-09-2008, 11:45 AM
Been working on a couple potential accounts...... Biz has been horrible this last month,I need some new accounts.

vote democrat

jAZ
09-09-2008, 11:46 AM
[B]He served on the board's audit committee, but the audit committee didn't see financial results for the second quarter until several days after Andrew McCain resigned, Stern said.
That's irrelevant. Seeing "financial results for the second quarter" is not the only way to learn of the impending collapse.

A source close to Andrew McCain said he resigned from the board because he was unable to spend the time needed to deal with challenges at the community bank, particularly after accepting an appointment as chairman of the Greater Phoenix Chamber of Commerce.

"He realized after he had joined (Silver State's board) that, like many regional banks around the country, Silver State faced serious challenges requiring a director that could give it considerable attention," the source said.

"He wanted to make sure that Silver State had a director in that position to deal with the really difficult problems that the bank faces," the source said.
So much for the notion that being a director was an empty suit role.

jAZ
09-09-2008, 11:59 AM
Have you? I'm on the board of numerous companies and while I can't speak for this guy's role I can tell you that being on a board usually entails very little in the way of day-to-day operating responsibilities.
It's not a question of day to day responsibility. It's a question of legal & fiduciary responsibility. In fact good governance demands that the directors not hold line management responsibility though that's not law, it's good practice.

They do hold ultimate authority and responsiblity though. The buck stops with the board.
But seriously, have you been involved in managing a large corporation or been a member of a board of directors? Just curious since you seem to think you know something about it.
Yes to both, though I've not been a Director for a publicly traded company I've been in management and supported the board directly. I'm currently on the of 3 different companies. With another pending.
This is a public company? What symbol did they trade under?
Fair point, I didn't mean to say they are publicly traded. I don't know that, they could be, or not. I meant that in the generic sense. As a bank, because of the deposits, etc. they are heavily regulated, even if they are privately held shares.

ROYC75
09-09-2008, 12:12 PM
vote democrat

I would but .....

# 1 Fuel prices would say the same for a long time, bad for business
# 2 Higher taxes to small companies , it brings a greater chance of failure to them
#3 Higher capital gains taxes
#4 Business will increase the cost of products to the consumer due to Obama's corporate taxes, up goes the cost of living.
# 4 More social programs, more BIG GOVERNMENT, more taxes to pay for it.

Crap, the list goes on and on and on.....

jAZ
09-09-2008, 01:53 PM
This is a public company? What symbol did they trade under?
It appears to be...

http://www.reuters.com/finance/stocks/companyOfficers?symbol=SSBX.O&viewId=bio

SSBX

jAZ
09-09-2008, 01:55 PM
The FDIC will cover the deposits, but that's not exactly the same as saying the bailout will cost anyone money (unlike the Freddie/Fanny fiasco which will).
They are different, but the point (problem) is the same. Privatize profits, socialize risks. The public is paying the price for mismanagement.