Bank Tied To John McCain's Son Goes Under

Andrew McCain Served On Silver State Bank's Board Until July Before Leaving; Bank's Failure Marks 11th Of The Year

(AP)  Regulators on Friday shut down Silver State Bank, saying the Nevada bank failed because of losses on soured loans, mainly in commercial real estate and land development.

It was the 11th failure this year of a federally insured bank.

Nevada regulators closed Silver State and the Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.

Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, starting in February but resigned in July citing "personal reasons," corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank's audit committee, responsible for oversight of the company's accounting.

The younger McCain, who is the chief financial officer of Hensley & Co., the beer distributorship of which Cindy McCain is chairwoman, is the Arizona senator's adopted son from his first marriage.

Andrew McCain's position on the Silver State board and departure were first reported Friday by The Wall Street Journal online.

Silver State Bank ran into difficulty because of a substantial amount of "poor-quality loans primarily related to real estate development" in southern Nevada and other distressed markets, FDIC spokesman David Barr said.

"When the housing market slowed down, people who bought raw land to build new homes didn't need that land so they couldn't do anything with it and repay their loans. So those loans went bad," Barr said.

Silver State Bancorp recently reported a net loss for the second quarter of $73.2 million, or $4.84 a share, compared with net profit of $6.2 million, or 44 cents a share, in the same period last year.

Construction and development loans have been the fastest-growing category of troubled loans for U.S. banks, and many banks have heavy concentrations of them in their lending portfolios, according to the FDIC. Some small banks are considered especially vulnerable. Delinquent loan payments and defaults by commercial and residential developers have surged to the highest levels since the early 1990s

the latter part of the savings and loan crisis.

The FDIC said Silver State Bank's insured deposits will be assumed by Nevada State Bank of Las Vegas. Its branches will reopen Monday as offices of Nevada State Bank in Nevada and National Bank of Arizona in Arizona.

The agency said depositors of Silver State Bank will continue to have full access to their deposits.

The 11 failures so far this year compare with three for all of 2007, and federal banking officials have said that more banks are in danger of collapse.

Silver State Bank has operated 13 branches in the greater Las Vegas area and four in the greater Phoenix-Scottsdale area of Arizona as well as loan offices in Nevada, Utah, Colorado, Washington, Oregon, California and Florida.

The FDIC estimated its resolution will cost the deposit insurance fund between $450 million and $550 million.

Regular deposit accounts are insured up to $100,000.

There were about $20 million in uninsured deposits held in roughly 500 accounts at Silver State that potentially exceeded the insurance limit, the FDIC said.

Concern has been growing over the solvency of some banks amid the housing slump and the steep slide in the mortgage market. The pressures of tighter credit, tumbling home prices and rising foreclosures have been battering many banks, large and small, across the nation.

The largest bank failure by far this year has been that of savings and loan IndyMac Bank, which was seized by regulators on July 11 with about $32 billion in assets and deposits of $19 billion.

The seizure of Pasadena, Calif.-based IndyMac, which was the largest regulated thrift to fail in the United States, prompted hundreds of angry customers to line up for hours in Southern California to demand their money. IndyMac also was the second-largest financial institution to close in U.S. history, after Continental Illinois National Bank in 1984.

The FDIC has been operating the bank, now called IndyMac Federal Bank, under a conservatorship.

The FDIC plans to raise insurance premiums paid by banks and thrifts to replenish its reserve fund after paying out billions of dollars to depositors at IndyMac. The fund, currently at $45 billion, is expected to take a hit from IndyMac of $4 billion to $8 billion.

Federal officials expect turbulence in the banking industry to continue well into next year, and more banks to appear on the FDIC's internal list of troubled institutions.

Of the 8,500 or so FDIC-insured banks in the country, 117 were considered to be in trouble in the second quarter - the highest level in about five years and up from 90 in the first quarter. The agency doesn't disclose the banks' names.

[marshall_nee]

Wow! the MSM took their time to report this one. Hmmm...

Like father, like son. Disasters in the making.

[jmurrieta1]

"Hensley & Co., the beer distributorship of which Cindy McCain is chairwoman"


And when is Cindy McCain going to release her FULL tax returns? not some edited version for the last year or two?

Don''t we deserve to know what pays John McCain''s bills? He''s totally owned by Cindy, and if John wants to be president, he really owes it to the US to disclose his wife''s financial dealings?

What''s the secret?

[marshall_nee]

Posted by StopSocialis at 06:57 PM : Sep 06, 2008

Lib media LOL. Have you seen who owns the media?
Some of the largest corporations on Earth.

[kkogrnis]

I hope McCain is proud of his son''s fine accomplishments in Nevada. Run a bank into the ground and bail out before he has to face the music. There is an example of "family values" for you. Serves his father proud.

[stn_sage]

Posted by StopSocialis at 06:57 PM : Sep 06, 2008
---------------------
STOP squawking, crybaby! NOBODY has gotten more of a ''free ride'' over the last 14 years than the GOP and Bush Cheney!

You supporters of these crooks gripe because you would have none of the GOP corruption, perversion, and irresponsibility reported!

Well, THAT''s NOT going to happen! The news media can''t turn a blind-eye to all RethugliCON blunders and mistakes!

The solution is obvious: your party leaders should stop breaking the law, think, and make less mistakes and blunders! If they do that, than the media won''t have bad stuff to report about them!!

[stn_sage]

additional:
This applies to family members who try to take advantage of their relatives'' political position!

[sioux4life1]

This is strangely similar to the failing of Silverado Savings & Loan and ties to Neil Bush, George HW Bush''''s son, back in the 80''''s!
Everything old is new again!
Posted by gce65 at 07:11 PM : Sep 06, 2008
*** beat me to it! Thanks CBS for the laugh!

[ronaldr5-2009]

CBS -- We love ya!
More McCain buttons are on the way. We just can''t keep up!

[ramos937]

Like father, like son. The father cannot understand how money works neither.

[ddaryl1]

and the republicans still refuse to see the truth that their party is corrupt and drving this ocuntry inot the ground for their own selfish needs

[barbaraf4]

I guess the reason Andrew McCain left his job at the bank in July was to go fight "God''s War" (quote Sarah Palin) in Iraq.

[glady1930]

I can''t imagine anyone supporting any Republican today considering the mess that this administration has put working people in, and as for that loud mouth that wants to be McCains partner in crime. Like she says.....the only difference in her and crooked Cheney is she wears lipstick and he wears a permanent sneer. They says the Dems don''t have experience to run this country....well maybe they won''t try to destroy what is left. That isn''t much.

[agt-r]

So, what else is new? The media is pro Osama-BinBiden and they''ll do ANYTHING to feed on the DNC and other lesser dumb bells.

[glady1930]

To: TRUTH071
My..oh..my. How do you know "no McCain has anything to do do with that banks problems". I will sure trust CBS'' investigations more than I do anyone who would defend the liars and crooks that this country has endured for almost 8 years. If someone else doesn''t soon take over there won''t be anything of this country left to fight over. We will be like those other 3rd world countries that we keep sending money while our own people are getting s-r-w-d.

[stn_sage]

Posted by TRUTH071 at 08:37 PM : Sep 06, 2008
------------------
My comments are as follows:

1. First, Chill out! Did you take your purple pill?!
If not, do it!

2. ''Tied to'' equates to ''associated with'' which is an accurate and fair description! He worked with the bank, got it?!

3. You assert ''no McCain has anything to do with the banks problems''! HEY! He sat on the Board of Director''s Audit Cmte. responsible for oversight of accounting! THAT makes him involved, mister!

4. YOU CAN''T possibly know whether he''s guilty of wrongdoing or not! And you''re not his legal representative either, so you''re not speaking for him.

5. Posters are speaking THEIR opinions! CBS didn''t put a gun to our heads and order us to say anything!

6. CBS reported it because it''s NEWS! And that''s what news sources DO! They report news, N-E-W-S!

7. If sponsors saw it your way, they will; if not, they won''t! I don''t think they do!

8. McCain has NOT been slandered. He''s not involved with the bank, keep your shorts on!

9. The vast majority of posters aren''t going to be swayed by these FACTS! If someone is voting against McSAME it''s for a bunch of other reasons!

10. Fortunately, we idiots are allowed to vote!

11. As represented by your tantrum, I''d say YOU''RE the threat to national security, not us swine posters!

12. Hey, I didn''t get a flag! And, what socialist rally? Nobody ever tells me about these meetings!

Take a pill, settle down, it''ll be alright!

[stevex47]

He couldn''t remember how many homes the bank owned. Oops.

Life father like son.

[glady1930]

AMEN.....stn_sage:

Well said. Just wish I could have said it as well as you did. A very good response.

[rrauch1]

how much like Bush can one person be? Remember Silverado and the Bush involvement?

[raskal_2]

...this is just sad irony. It is said that when you find irony that satire writes itself. all I read is that satire and as An American I am just sick of the irony. With the big loan people being taken over in the next couple of days it is just sad. Forgive me if I take time tomorrow and help out my neighbor and make someone laugh, it is all that should be done.

[antoniof123]

Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, starting in February but resigned in July citing "personal reasons," corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank''s audit committee, responsible for oversight of the company''s accounting.

Translation I got out before it went under and my Dad will protect me like always.

[credibility2]

Maybe, just maybe, the McCain kid realized some ethical issues that weren''t in line with his and he opted out of the board position? What''s the matter, isn''t it fathomable that Repubs have any scrupples? I''ve known others who have gotten into situations with corporations and after realizing some of the questionable procedures and policies, generally not disclosed at the time of interviewing or initial engagement, the individual leaves, usually citing personal reasons.

[cattiej]

Did everyone forget that John McCain was part of the Keating 5 of 1989 fame? Did anyone of you loose money on that dirty deal? If not, good, if you did, I am sorry but history has a way of repeating itself.

[kissamaarse]

Some surprise from the son of a member of the Keating 5. Rot and corruption seem to be genetic.

[hazelknows]

if he is like the old man, this would be a dangerous job, not being able to put your hands up. penguins..

[endofempire]

Oprah who? Does anyone out there still actually watch Oprah? Now, just like the firing of a public official who refused to fire a trooper who tasered his son and drank while on duty is Palin''s fault, the failure of this bank most certainly has to be the fault of McCain''s son.

[jerr11]

No surprise here.

Another repub for corruption!

[hermitdave]

What a co-inkey-dinkey, it just so happens Crusader George had a brother involved in major bank stuff. Must be a republican thing.

[caliguy55]

Johnny McSame is a pathetic excuse for a human being as he tries to steal the mantle of change from Sen. Barack Obama. To hear this bed mate of George W. Bush talking about change is like listening to Adolf Hitler speaking about humility. No matter how McSame attempts to disguise it, the only change he has ever been concerned about is the status of the cancer that seems to have reached his brain. This is proved beyond any doubt by his selection of Sarah Palin to be his running mate. Though the most important decision McSame had to make at this time, he obviously threw out rationality and reality in favor of a novelty he believes will help his campaign. Given the reckless, dangerous, and irresponsible nature of this decision, McSame cannot complain about Sen. Barack Obama''s alleged lack of experience and judgment. McSame just proved to the world that experience (he''s been in the Senate forever) does not bestow on a person wisdom, prudence, and reasonableness in the realm of decision making. Impulsive and rash, Johnny McSame is the last person we need in the White House during this troubled period in our nation''s history, when conservatism has just about managed to destroy the country. A madman and a crook -what a pair the G.O.P. has chosen to lead this country. No way, no how, no Johnny McSame. Obama/Biden 2008!!!

[rudy654-2009]

It is just another way for the neocons to scr#w the American public. They know what they are doing. It is no coincidence that Bush and McCain have ties to these institutions. Don''t think for a minute these people will be held responsible.

[rudy654-2009]

Posted by endofempire at 11:35 PM

Oprah is a far better person than your pitbull with lipstick ever thought of being, not that the barracuda really cares about be a good person.

[endofempire]

rudy: Yet again, Oprah who?

[chert1]

CBSNews.com appears to be the only major MSM that is paying any attention to this story. The Washington Post has it buried in Section D. This is a significant story considering McCain''s involvement in the Keating Five, considering Neal "Silverado Savings & Loan" Bush...and yet little play in the media.

So congratulations to CBS for paying attention. For your next story, you might want to investigate why it was ignored by everyone else.

[shanev137]

Time to call in some favors from Charlie Keating.....

"Hey Chuck, this is Johnny McCain...remember all those fbi agents I got off yourass back in the 80''s when you were *** over those old people and letting me and Cindy use your Learjets for free?...How did I pull all thatcrap off again and still get re-elected??...We gotta do the same thing for our son now but we can''t remember how because all my chemotherapy and all her prescription drug abuse has rotted our brains."

[burneb]

Don''t know how much Andrew McCain might be responsible for Silver State''s failure, but I do know with the way banks have all the rules (mostly written by banks) in their favor, bank management has to be pretty corrupt or incompetent for a bank to fail, even in poor times.

Yes, there has been remarkably little coverage of McCain''s role in the Keating Savings & Loan Scandal. Or much about how the Family Values candidate happens to be with Cindy McCain instead of his first wife. So much for the all-pervasive "liberal media" I keep hearing about.

[r9119111]

Thanks to deregulation. I wonder who was responsible for that?

[shanev137]

Posted by seezero1 at 02:10 AM : Sep 07, 2008

Ain''t gonna happen. Obama is going to close all the tax loop holes for the rich and raise their taxes....not people making less than 30K a year. Nice try though.

[samthetvcat]

---"Thanks to deregulation. I wonder who was responsible for that?"---
Posted by r9119111

I wouldn''t be bragging about the Dem history of overregulating either - it''s overbroad and stifles economic growth to the extent that it could conceivably be even worse than the GOP pattern of deregulation and bail-outs . . .

[samthetvcat]

---"What about the people making at least 30K (30,000; 30,001; etc.)"---
Posted by seezero1

I wonder whether the candidates realize just how many of us are tuned in and how price-sensitive we all are . . . because if McCain just matched Barack with his tax cut rate for people making say $30k to $50k, wouldn''t people be more receptive to his message?

Otherwise he''s asking people in that income bracket to pass up like $700 worth of tax cuts to vote for a guy who''s going to give hundreds of thousands of dollars of tax cuts to his wife. That''s not right . . .

[r9119111]

---"Thanks to deregulation. I wonder who was responsible for that?"---
Posted by r9119111

I wouldn''''t be bragging about the Dem history of overregulating either - it''''s overbroad and stifles economic growth to the extent that it could conceivably be even worse than the GOP pattern of deregulation and bail-outs . . .

Posted by SamTheTVCat at 02:23 AM : Sep 07, 2008

Can we agree that regulation has to be fair and balanced in order to work efficiently? Who is responsible to perform that oversight? Why aren''t they doing their jobs? Could it be Greed and moral dacay?

[samthetvcat]

---"Could it be Greed and moral dacay?"---
Posted by r9119111

Didn''t Alan Greenspan take responsibility, although it didn''t seem to me like there was anything that ''ought'' to have caught his eye (?)

I blame that Rich Dad Poor Dad guy for making it sound to everybody like there was no risk involved in investing in real estate.

I don''t know :)

[r9119111]

Perhaps some adult supervision would be helpful instead of all of the childishness we have been experiencing in our government?

[samthetvcat]

---"Perhaps some adult supervision would be helpful instead of all of the childishness we have been experiencing in our government?"---
Posted by r9119111

You find Alan Greenspan ''childish''? Wasn''t he in charge during the Clinton Administration?

[samthetvcat]

I wasn''t really thinking, but I guess when I point to Rich Dad Poor Dad guy the point I was getting at is that there was enough blame to go around - all those people who bought homes, none of them are Democrats?

[r9119111]

I''m not naming anyone. However, all of the arrogance, greed, partisanship and self-interest is pure childnishness. Where is the spirit of sacrifice, cooperation and compromise, by all of the citizenry, that is so essential in a well balanced society? We need it so very much

[shanev137]

Like somebody said....in this day and age it really takes a -MAJOR-screwup for a bank to go under.

Like father like son.

[sistatee-2009]

Was the bank tied to anybody else..or just McCain''s son?
The bank was probably tied to 5,000 democrats, but CBS didn''t pick up on that.

[rjstolba]

What is with the McCains and banks and S&Ls???

[whatithink1]

trrrorislamg,

Sounds like you are the one who really wanted a celebrity. What does all of this have to do with running for office? Nothing.

[omega39-2009]

Posted by trrrorislamg a


Hey stupid, this board is about John McCain''s son and the failure of a bank. If you haven''t anything relative to say mooooveon.