The Savings and Loan Banking Crisis: George Bush, the CIA, and Organized Crime

today alternative views will interview Pete Bruton concerning his book the Mafia CIA and George Bush Pete is a former Houston Post reporter who broke the story of the connections between the S&L scandal and the CIA exposing how CIA assets would borrow money from the SNL’s to finance off the book operations and then declare bankruptcy and leave us taxpayers with the bill well for the past five years Pete has been tracking down who actually profited from the SNL scam who the main players were and how they skimmed off their money lo and behold he discovered that the beneficiaries of the SNL scandals were Friends of George Bush and his family unsavory folks connected to the CIA and mafia as well as associates of Texas bigshot such as senator Lloyd Bentsen and Houston power broker Walter Mischer well obviously this is an explosive story and today we are going to explore the full ramifications of the SNL crisis with author Pete Bruton who’s now a law student here at the University of Texas Pete this is such an incredible story one that is so complex it seems to me almost one impossible to tell but you do it so well in your book before we get into the intricacies of it I wonder if you can tell us how George Bush himself was involved in this his family was but was he himself involvement Bush’s role was on many levels first of all as vice president during the Reagan Bush years he was the head of the Reagan Bush deregulation efforts across the board and that included savings alone and the deregulation of savings and loans that occurred primarily in 1982 with the st. germain Garn bill basically opened up savings and loans to the crooks SNL’s had traditionally just done home mortgage lending to middle-class Americans and they succeeded very well for 50 years they had some problems then in the late seventies and early eighties with the inflation so the British Reagan Bush administration and Congress decided that they were going to deregulate quote-unquote savings and loans and this allowed SMEs to basically invest their money and lend their money on anything they wanted to and was an open invitation to the criminal element and sure enough the Mafia was one of the first people groups involved in looting SNL’s in the early 80s and the deregulation that bush was in charge of did that Bush also his vice president either he or his top aides intervened in the federal regulation of the biggest fail savings alone in the country at that time sunrise savings in Boynton Beach Florida the CEO of sunrise went up to Bush his office when he was vice president and the story very he tells one story one time in one story another either met with bush with Bush’s top aides included C Boyden gray who is the current White House Counsel and he asked them to get the federal regulators off his back they were trying to stop sunrise from basically throwing their assets away and one week after he met with these people the Federal Home Loan Bank board that regulates savings and loans withdrew a very stringent cease and desist order against sunrise and replaced it with a weak supervisory agreement and a congressional study found that this move cost taxpayers possibly 100 million dollars or more in keeping sunrise open sunrise was then closed down a year later year and a half later at a cost of the federal taxpayers of seven hundred million dollars and there was no Federal Home Loan Bank board investigation it was just shut down we find if you look at the major borrowers that sunrise you find mafia people you find CIA people and you find a Houston businessman named John riddle who he ties into the circle of Houston businessmen that George Bush come from and Riddle at this time was involved in a transshipment of arms to the Middle East now top number two official at the Federal Home Loan Bank board and Fairbanks was in this meeting with the sunrise CEO when he was asking them to get the feds off his back her husband Richard Fairbanks was in charge at that time with the State Department’s efforts to keep arms from Iran called Operation stunt he quit a year later and became the Washington lawyer and lobbyist for Iraq and worked with Iraq until Iraq invaded Kuwait now it’s interesting also to note that the largest failed S&L in the country that did not have a Federal Home Loan Bank board investigation sunrise was number two largest the largest was hill financial in Red Hill Pennsylvania that plays a big part in my book and the number two borrower Hill Financial was John riddles buddy a Houston builder named Ike Atkinson who at that time was transshipping arms to the Middle East so he found a connecting thread here of arms to the Middle East and savings and loans and Bush’s office was directly involved in keeping this sunrise sunrise say open and was lending money to John riddle it seems like such a complex thing but it seemed everywhere you look there are certain things going on the CIA and the Mafia and there were drugs that were being run back into the United States there were illegal arms being procured and sent to the Contras as well as to Iran and Iraq as we know and Iraq but all of these interests coincided the Mafia they how did the Mafia with the Mafia just after money is that how and and perhaps the selling of drugs when they came back into the United States I think the Mafia just found it is another you know trough they could feed it and I think they were in on it at the beginning when they saw they knew a deregulation was going to do and the fact that they they figured out a scheme and then the head of this scheme was a York mobster named Mario Renda who went to jail for like less than three years he was convicted new york florida in kansas city Orenda would collect money from various institutions like pitch and funds and credit unions bundle it up and $100,000 bundle so it was covered by Federal Deposit Insurance and then place it in savings loans all across the country billions of dollars and once he got the money the deposits into an SNL he could basically control them he could he had a hammer over their head if they didn’t do with this money what he wanted he’d just pull it out and this was called linked financing he would place the deposits and then tell the SNL’s to loan the money to lend the money to his buddies they would then just rip it off take it in and rip it off now in Texas we found a Louisiana mobster named Herman KBB who was controlling SNL’s in a different way than Renda and we found BB and Renda together in many many different places across the country many connections between the two but BB would actually finance the purchase of savings and loans by his associates like Don Dixon and Vernon Carol Kelly at Continental Jarrett woods at Western the Roy Daly at first savings of East Texas and then he would have a hammer over their head where he was holding the note on their stock to the S&L so they would do what he wanted to I think it’s so significant what you’ve pointed out that this isn’t just something these relationships are something which came together suddenly when they said oh hey here’s a great big pig let’s cut it up there were this was just a continuation of relationships between powerful people at various levels of state local and national that have been going on for some time that’s correct in fact we have a sort of dry run on the S&L scandal in the mid 70s in Texas with the so-called Texas winter Bank scandal where we have the same people that showed up in the S&L crisis ripping off small Texas banks and doing the same thing trading bad loans between each other trading capital stock loans between each other herma KBB was in the middle of that benbarnes is his business partner was in the middle of it and then later Ben Barnes and John Connally show up his big big borrowers and many of the dirtiest SNL’s in the country George Albin another guy that was involved in savings and loans was in the Texas renovating scandal so and the federal government knew about the rent of Mexican the king did and did an investigation there was a Savings and Loan in Texas in Houston called surety that a woman named rosemary Stewart was in charge of the federal regulation out in Washington and she saw her McKay be she saw Walter Misha she saw mr. son-in-law Robert Corson and when these people all got back in the SNL’s you know five ten years later she did nothing and that she was then in charge of the office of enforcement of the Federal Home Loan Bank board Pete yeah your book begins in fact by discussing Walter Mischer who’s a Houston banker and power broker as a major player in this whole SNL scam can you tell a little bit about him and what role he actually played in this scenario yeah Walter Mischer was at the very center of the Houston business connections that all you take all these SNL’s you start tracking back where the money goes and you find Mischer and his friends Mischer was what we call a hyphenated Texan banker hyphenated developer and probably a few other hyphens in there too political power broker he controlled politicians on all levels measure basically told the Houston developers who they were going to donate political campaign campaign money to measure had the third largest bank in Houston allied bank and he used allied bank to finance many different things including some of the dirtiest savings or loans in Houston like Continental savings mainland savings and some others and in fact Mischer knew that the S&L were going down the tubes in the early 80s because he sold a savings and loan he had Ben Franklin savings that at one time had belonged to Lloyd Vincent’s company he also ordered all the SNL capital stock loans out of allied in 8283 so that when these SNL’s failed he wouldn’t be caught holding the bag and in turn he had many savings of loans helping he and his bank out indirectly and one kind of mainland savings in Houston bought a 20 million dollar loan that allied held on an oil company was in bankruptcy and a later investigation showed that mainland lost at least fourteen million dollars on this there was no hope of repaying and Leyland just did as a favor to allied the CEO of mainland had had his mainland stock financed at allied bank it was a good friend of all term assured and what sort of political friends did Walter major have who or his main for the political connections well mister goes back to the old 8 F days Ala Moana Hotel in Houston where the Brown Brothers Jesse Jones Gus were them these people were wheelin dealin controlling Houston and politicians like Lyndon Johnson it goes back that four and then you bring a measure was very close to John Connally benbarnes Lloyd Bentsen and George Bush and most of the Houston mayors and Harris County judges almost all of the Texas governor’s except for Ann Richards I’m not sure about her but we know doc Briscoe and even Republicans like bill Clements Misha was very close to and supported Fischer’s political donations and influence went to both parties it was not just Democrats for me he supported Democrats of course back in the 50s and 60s when Democrats controlled this state but he also you know controlled and helped a lot of Republicans like John tower and in George Bush and Bill Clinton so he was a well-connected fellow very well-connected and not just of course the politician he was connected to the Mafia well that’s why it was a big shock I mean when I was reported Euston Post and people started telling me about his connections to the Mafia and we did a big interview with him and it was on the cover of the Houston post Sunday magazine and I asked him what about all the rumors about your connections to carlos marcello the new orleans mafia boss and he admitted that he’d sat down to do business with marcelo at one time Marcel would come in and wanted to buy a couple of his hotels including the carousel Hotel on the South Loop and he said he did not sell them to him because he did not want to get quote run out of town well it turns out when you investigate who he really sold it to turns out to be a Marcello frontman and associate so he really did in Mischer and his partners kept the D the title to this hotel while Marcello’s frontman was showing the x-rated movies and running prostitutes in this hotel and what about hkb be his connections with Walter Mischer and the mob you know will be the roar of the Louisiana mafia associate from Shreveport had turned up first in the Texas rental bank scandal where he was connected to Ben Barnes who of course was in Walter Bishop pocket BB then was borrowing money from measures allied bank issue was supporting him there operating loans giving him insurance business and in one case the stock of Continental savings in Houston was financed that measures allied bank with a guarantee from Herman KBB so they were very close in doing business not only in the text Houston area but in Louisiana we find associates of Mischer very close associates including the farmer controller of the currency Robert Clark going in and buying a bank with Herman KBB in Louisiana along with to the two top executives that measures bank now was he was be be under marchello well absolutely garden okay and this had been determined actually by the Texas Attorney General’s organized crime strike force in the mid 70s now John Hill is actually had an organized crime investigative unit headed by I believe Tim James and they found the connections between hurricane BB and carlos marcello BB was also tied to marcelo by the New Orleans Metropolitan Crime Commission this is back in the mid seventies and then you find all of the connections then later with the SML scandal can you give us an example of how they mafia comes in with the mob Lutz savings alone or two and then move on well it would indeed ease case he would actually finance the the controlling stock of an SML and then the loans would be made to either BB or his associates and then they would take the money and walk to loans and leaving the S&L with property that wasn’t worth any what their what they’d Lin on it and that’s the way they basically failed how did the CIA get involved in with these people well that’s a good question I don’t think we know the final answer yet there are some people who believe that William Casey had been in on the beginning of the deregulation and knew that it was susceptible you know Casey was an old Wall Street lawyer and head of the SEC at one time and knew that the the SNL’s are very being looted and the money taken out and never found but on the other hand we have people like Walter Mischer who are connected to the CIA can probably see that if they keep the CIA happy you know diverting some of the money to CIA operations then you know they will get what the FBI calls the CIA’s get-out-of-jail-free card in other words if they’re working doing and helping the CIA and they get caught and the CIA can come in and say don’t prosecute this person he’s working with us and that happened on a number of occasions in the S&L crisis where we would have a Savings and Loan looter or a bank looter getting caught by the FBI and the Justice Department the CIA trying to get them off the hook because they work with them now we’ve had on alternative views as if you’ve been watching alternative views regularly know that about the drug scams which were going on where illegal arms would be shipped down to the Contras particularly and the c-130s would be filled up with cocaine and all and brought back in the United States and offloaded sometimes at US Air Force bases sometimes that more covert landing strips now how would this operation fit in with what we’re talking about right we found a number of people in Florida they were helping the Contras taking weapons guns for drugs that were involved in failed banks and savings and loans one CIA gun and drug runner wasn’t going to Jack DeVoe and DeVoe was actually bringing in his cocaine into the Ocean Reef Club on Key Largo it was owned by a lender the Cincinnati businessman and it’s very close to Bush very close to Bush ok Bush would go down and actually vacation at the Ocean Reef but there’s a picture in my book a bush and a fishing boat off Ocean Reef this is where Jack Duvall was bringing in his cocaine and devote was also taking guns down to Latin America for the CIA now des Vosges money-launderer was a miami attorney named Lawrence Freeman Freeman had previously worked for Paul hello well one of the founding fathers of the CIA and also was laundering money for Santo Trafficante the Tampa Florida mafia boss Freeman drew up the documents the sales contract for a 21 thousand acre land D on the Florida Panhandle that he’ll financial savings the one in Pennsylvania we preview talked about envision bank savings in Kingsville Texas that was on our altar measures former son-in-law financed here we have Lawrence Freeman drawing up the papers and involved with these people and he’s you know closely connected the CIA had been the in-house counsel for Cassell Bank and Trust and NASA a bank that was used by the Mafia in the CIA to hide and launder money and was shut down when Paul Helliwell died and appeared that many of these these offshore money laundering operations were moved after Cassell bank failed in the shutdown to the Isle of Jersey and Lawrence Freeman was laundering Jack DeRose drug money through the island Jersey Robert Corson wishers former son-in-law and McKagan sin’ were laundering SNL money through the island Jersey along with some people in Colorado that connect to Neil Bush all were using the same the same trust the same trust in the al Jersey we’re getting drug money and that’s the nettle money and they were mixed in in the same bank accounts I’m P could you give some examples of how the CIA would loot SNL’s and what they used the money for well it’s not like the CIA would you get a loan from an S nailing down the bottom line you know for guns guns to the countries signed by the CIA right that’s not the way they operate I mean they use cutouts and front people so that to maintain their plausible deniability so they can come in and deny that it wasn’t them and once it cut out then a cut out is a front man a middle person who may not even know he’s working for the CIA I think there could be four or five levels of cutouts in front me of the layers that the CIA would the money would flow through so that it couldn’t be tracked back to the CIA one of the best examples we have in the SNL’s was when mainland savings this is the S&L that walter measure was financing the stock of this is the SML whose chair of the board raymond hill was a close and long-time friend of James a baker the third White House chief of staff former Treasury secretary former Secretary of State George Bush’s best friend when mainland failed James Baker’s old law firm Andrews and Curt in Houston was brought in by the feds to investigate the failure and file a lawsuit against the officers and directors to try to recover the lost money Andrews and Corinth investigated actually drew up a lawsuit a petition but was never found it was stopped at the top layers of Andrews Kirk and the federal government and as a result no lawsuit was ever filed against Raymond Hill the mainland CEO and no money was ever recovered no indictments have ever been filed against anybody in the failure of mainland savings okay so here we have this that’s now it’s wired in to walter measured and James Baker in the summer of 1985 James Baker went before a Senate Finance Committee as Treasury secretary and told them that there was nothing to worry about in the SNL’s everything was wonderful and fine and nothing bad was going to happen at the very same time mainland Savings was entering into a sixty-eight million dollar land deal with non khashoggi a Saudi Arabian middleman and arms dealer and it was a very complicated deal the result of it was that khashoggi walked away with about sixteen million dollars in cash profit pure profit from this land deal the taxpayers later got stuck with about a fifty million dollar loss on this deal this was close this deal was closing the money transferred on August the 1st 1985 six days later Adnan Khashoggi begins the transfer of five million dollars to kobani for the Iranian middlemen to start the first publicized honours for hostages deal it’s interesting that he transferred five million dollars to go Bonaparte because at the same time mainland was basically giving him sixteen million dollars they also gave him a five million dollar letter of credit that was very strange because it could only be drawn on the first week in November of 85 and had all the earmarks of the guarantee and in fact later when Khashoggi x’ people were trying to cover this up from the FBI who caught on to this pretty soon they said it was a to guarantee some stock that Khashoggi had bought from mainland but the money to buy that stock had come from mainland to steal no work mainland gave khashoggi ten million dollars he gives it back to the end of the exchange for ten million dollars in stock and they said oh by the way here’s a letter of credit for five million dollars to guarantee the stock it didn’t make any sense at all because it came from mainland the money came from mainland but the five million dollars matches exactly the five million dollars that khashoggi paid to mana for Sookie this is in a sense the beginning of iran-contra yes it’s funded with SNL money so one of the reasons why Baker and bush and the US government was not regulating the SNL’s was not doing something about this crisis that was emerging is because they were using the SNL’s to finance some of their off-the-book activities they didn’t want Congress or the public to look into nothing’s added correct I think that’s what happened now whether we can prove that they quote used them you know we probably never know but that is the ultimate upshot of what happened and the money of course from mainland ultimately came from the American taxpayers so we went in since we’re financing these covert illegal operations and it’s the way that of course all over north wind case hits away George Bush the way they like to do things I mean North testified before Congress at what William Casey was looking for trying to set up was a self-sustaining off-the-shelf self-financing covert operation and here we had it we see it in operation with the Savings and Loan money that ultimately came from the American taxpayer so you know Khashoggi wasn’t out any money the Iranians and Israelis really weren’t anybody came from the American taxpayers in general now in so much of what we’ve talked about previously at alternative views and in a lot of the news stories that you would read they would mainly focus on the savings and loans themselves and all these wheelers and dealers like Don Dixon up and burning savings or Charles Keating and all that but we’re talking about a stratum above that those people aren’t we know definitely I think Dixon and Keating and all the others ed McBurney Jarrett woods tyrell barker were just front men I mean they were cut outs basically and if you look at how much money they got I call him one or two percenters Dixon got maybe what twenty million dollars out of Vernon I mean he himself and learning this costing taxpayers over 1 billion dollars Keating got about 40 million dollars and Lincoln savings is costing taxpayers two billion dollars so you can see you’re getting one or two percent and and it’s a classic front man set up and the people that you get to who’s really getting this money and you start scratching and digging you find that you’re in another stratum as you say a businessman who are connected to the politicians very strongly of course Keating had strong connections to but if you look at who got the money out of Lincoln he’s find John Connolly and Ben Barnes getting close to a hundred million dollars you find a little bank in Paris called Saudi European Paris taxes Paris no actually Paris France Paris Frank yeah it connects into the BCCI Ojai State and Keating was investing money in that and he starts scratching today and he find even bigger players than Keating finding this so then there’s that this layers the layer of the Mafia and the CIA and was anybody was there another layer above them like the big banks they must they were getting the money the benefits of the money laundering from drugs because they would be laundered through the u.s. big banking system North Korea were they also benefiting from this that even a same level or higher level well the banks and insurance companies believe it or not were so the big institutions got bailed out by the SNL’s if you had a piece of property or an office building that the first mortgage of the first lien on it might be held by a big bank or big insurance company and when the savings and loan would come in and take out everything and refinance the whole deal the banks and SNL’s would get paid off by the savings of only fact that happened in the khashoggi deal Texas Commerce Bank at a 15 million dollar a mortgage against cash oh geez property and the money to pay off that mortgage came from mainland savings and also Lamar savings in Austin joined in in that so Texas Commerce Bank got all their money back from the Savings and Loan do you find it happen time and time again a piece of property will have a first big first mortgage by a bank or insurance company that will get paid off by the S&L where they take the whole deal out well as I understand the big banks I mean the Wall Street banks and all a lot of these deals a lot of the property would be resold and eventually they would come up into the hands of these bigger banks and insurance companies like in New York and so I guess they would be the first ones to be paid off in any type of bailout would they not well sure I mean if they the first mortgage they get they’re going to get the money first before anybody the savings alone might be holding a third or fourth mortgage I mean they would wrap these things and flip these things so that the S&L might be third or fourth in line and would never get once the property sold in the first mortgage mortgage is paid off the S&L is left with nothing Pete there’s a chapter of your book called the mobsters spooks and George Bush the Palmer National Bank story that ties all these things that we’re talking about together in other words the way that high-level officials with connections for the government corporate and political officials formed a bank the Palmer National Bank and how it became connected with all these unsavory operations you want to give us some detail on this to sort of concretely illustrate this analysis empower National Bank had just about everybody in it was a small bank still exist in Washington DC about two blocks north of the White House it was started by a Louisiana businessman named Harvey McLean and a political operative from Washington DC called Stephan Halper and McClendon halper met in 1980 when they were both working on George Bush’s presidential campaign and Halper later was was head of the policy group for Bush and then when Reagan became the nominee and Bush was named vice presidential candidate Halper went to work for their campaign is part of the policy group and was actually a high-level official in what they called the October Surprise group the group that was trying to determine whether or not Carter was going to pull off an October Surprise and get the Iranian hostages home or whatever might and halper was was in charge of this group his father-in-law was ray client who was the former deputy director of intelligence of the CIA Klein was working with them with Bush and then when when Reagan and Bush wanted Halper went to work for the State Department they created a position for him and James Baker by the way was the one that brought help over to the reagan-bush team after Reagan became the nominee from the bush team so and Harvey MacLean was a businessman from Shreveport Louisiana and he was being financed by none other than Herman KBB the mafia associate MacLean moves to Dallas and buys Perry savings alone in Paris Texas and is borrowing money from Vernon savings from Continental savings in Houston and later of course all these loans go bad and Paris goes bust and MacLaine’s business deals cost taxpayers probably over a hundred million dollars that’s kind of getting ahead of the story back in 83 MacLean and I were taking a trip to China and they start talking about let’s get a bank in Washington DC so they they start Palmer National Bank Palmer was named after MacLaine’s grandmother and daughter and the capital the $3,000,000 capital to start the bank came from Hermann kbv and Bossier Bank and Trust Dean I connected to the mob in Louisiana and into the ends everywhere and the mission and Ben Barnes John Connolly all these people so when soon as they started this bank they began lending money to conservative Republican PACs like Bob Dole and Jack Kim and then they take on another client the national endowment for the preservation of Liberty which was started by Oliver North and a guy named Spitz channel to funnel private donations to the Contras okay and of course the biggest donor was Ellen Garwood here in Austin the widow of the former Supreme Court justice and Palmer National Bank was also lending money to the national endowment for operating loans and for furniture loans and helping funnel the money that’s where the head of the bank would the money would go from Palmer National Bank to another Washington bank to the Cayman Islands and it over to Geneva Switzerland in in the bank account it credits with where not only was contra money being flowed into but Iranian arms profits were all seaboard was operating that was that was C courts and then then it would go out to the Contras and Palmer was that was the starting point of the money and Palmer National Bank also made a loan on a a beach house in Solana Beach California that BB and Dixon would use to entertain SNL regulators including ll Bowman in fact they mayor that’s where he allegedly had a tryst with a prostitute in that beach house and power National Bank had a piece of the action on that beach house and later Stephane Halper was when he got caught in a debate gate scandal if you call that the theft of the Carter debating manuals that ended up in the Reagan Bush campaign it apparently James Baker or William Casey or both of them were involved in and that was just part of an enormous covert action against the Carter Administration which they had something like hundred and thirty seven operatives and all kinds of high levels spying snooping and even stealing top-secret documents and this is just one of their will help Parrish correct the helper was involved in that and he course his name surfaced in 1984 when this came out and he had to sort of leave he kind of backed out of Palmer National Bank but he stayed in touch with these people of course and then when Oliver North was fired by Reagan in November of 1986 when the when the scheme where they were you know using profits from the Iranian arms deals to fund the Contras and all came tumbling out in Reagan fired North the very last entry in Oliver North’s White House Diaries was legal defense firm – Stefen Halper our old Palmer National Bank Gunny who also again I want to make this october surprise connection because Halper was the head of the october surprise committee for the reagan election team in 1980 which was frightened to death that the Carter Administration was going to negotiate the release of the hostages which may be one of the reasons why they stoled the debate book as well as did these other covert actions against Carter because they wanted to find out what he was doing for this hostage release and if possible subvert it and give the Iranians a better deal at least that’s the account that Gary SiC and others give that’s correct we don’t was a little over and how it worked out that way they rigged a deal so that the Iranians would hold the hostages until after the election and return for arms and lo and behold 20 minutes after Reagan raised his hand and said that he would ruin the country the hostages were released well even and here we had this little Bank you know that was involved in all this being financed with Louisiana mafia money and when Herman KBB was convicted first convicted in 1985 of course they moved that loan out of Bossier Bank to a little savings alone in Beaumont Texas called San Jacinto savings different from San Jacinto and Houston and if you look at the board members and that Bank you find two people who were major stockholders in the casinos Caesars Casino in Las Vegas the course was was being scammed by the Chicago mafia at that time that’s absolutely incredible how all this is connected October Surprise iran-contra SNL mafia CIA all of it William Casey all of these operations under the Reagan administration were interconnected as well as the players then you find the same people in the same threads running through these these operations and the money you know from SNL’s going into these operations can you tell us another story about a landing strip in La heaters Texas yes I first found out about the possible connections to the savings of loans in the CIA and I guess the fall of 1988 when a woman in Houston called up my associate Houston post Greg C and told him berated him about some of our coverage of SNL’s that weren’t getting the whole story so we went to see her her name was Rebecca Simms she had been Robert Corson Misha was foreign son-in-law his accountant and she had quit because he’d been asked to commit bankruptcy and tax fraud and so she started investigating Corson and she found out that Corson had been a asset of the CIA and when she first told me that I really wasn’t interested in it at all I had no interest in it I wasn’t looking for the sea I was looking to the Mafia and I guess I was even a little disappointed but when I went back to my office I remember several things one when we had done the story on Walter misharin had been calling everybody all his people he knew just get background information on him one of his close associates told me about the 700,000 acres in beliefs and Central America he was brought into and that his associate thought that this was a CIA operation and this was someone who’s very close to measure and would not say something like that unless he knew it would had something to and I sort of filed that you know away in my mind I remembered that came up and then I remember there was a organized crime strike force prosecutor in Kansas City that was chasing Mario Renda the New York mob money broker and I had been I was chasing Renta – so we had a lot of contact I’ve been sending him our stories we’ve been writing in the Houston post and he said almost the same thing Rebecca Simms and said you’re missing something big here there’s something you’re not getting and so I wondered if he was talking about the CIA so I flew up to Kansas City and and met with him and sure enough that was it he was talking about the CIA so that’s how the CIA connection rose and Rebecca Simms had been told about the CIA connection from a man named Richard brenneke oh my gosh he’s his name pops up over Exiles iran-contra drugs Ricky had been the sort of renegade intelligence agent in Portland Oregon he had received a lot of notoriety because he some of the breaking stories on iran-contra had come from him on the Iranian arms deals and some of the Contra arms deals and the New York Times the Newsweek had used him as a major source and so I went up to see brenneke and I spent a week with him and when I when I got back I’d really didn’t have much because brenneke didn’t have a lot of documents backing up what he was saying it was very frustrating experience with Brenna Quixote’s he’s a typical kind of intelligence agent that will will deliberately lie to you on some occasions I mean you just can’t trust everything he tells you but on the other hand he will tell you the truth on a number of cases and he at one point in our conversations began describing and landing strip in Far West Texas that had been a CIA guns for drugs deal you know guns and drugs transshipment point and he said they flew c-130s and there is a four thousand but so I I ripped a big sheet of paper out of an illegal notebook and I said draw me a map you know she starts drawing this man but here was lahee tiss which is west of big ben easy go he said about ten miles northeast and there’s this mesa it had a very detailed map four thousand V gave me the the the way was oriented the fact that there was a mountain just north of it and there was a Mesa there and so I took that back to Houston with me hoping it on I didn’t maybe this would check out so I got a USGS class a topo map of the area which I’m I was absolutely positive would show a landing strip that big four thousand feet and I get the map out and look at it and I could see about where it should have been according to his his map and there was on the map and so I said well I’ll give it one more shot or get the aerial photographs that they use to make these maps they take care of photographs and so over the area of photographs and I got them out and I looked at them and there was right exactly what the landing strip exactly ready described it and the FAA had no record it wasn’t on any map and so I went out out to that to is about 15 miles northeast levitus and about let’s say less than ten miles from terlingua and actually drove out to it and looked at it and began talking to people about it and basically got it confirmed that it was a c-130 s flew in there with arms and drugs and and brenneke had told me that when he flew in there that he asked the people he was flying in there with who were people by the way associated with the Medellin Cartel whose landing strip this was he was told it was what they told him Walter Mishra now Misha owns at that time it owned probably close to three hundred thousand maybe more acres in that area but he didn’t own that piece of property he had land to the west of it and land to the south of it so when I began researching who owned this property I found a widow in Florida actually owned that property and she had never been there in her life and only found out a few years before I talked to her that a landing strip was there because one of her relatives went hunting can told her did you know there’s a landing strip Rhonda Miller your property and she said no and that she said it was done without her knowledge or permission and of course there what a great it was actually the only place in that era that’s a very rough rugged country there just west of Big Bend it was the only level place for miles and miles around in that vicinity that you could put a landing strip and of course if a widow from Florida has never been there owns it in just about anybody wanted to probably could curse the law enforcement had to know about it we talked to them you get contradictory answers and inconsistent answers and they’re trying to cover up obviously although they would acknowledge that they’ve seen c-130s in the vicinity there’s no reason to see one of course there is a low-level training round c-130s out of San Antonio in that area what it what a perfect cover of course for flying in c-130s can we got up to a higher level of politics again mr. clean mr. Benson Lloyd Bentsen he’s connected with this in some way yeah I’m ready to bid some in a number of places the first place Iranian Lloyd Bentsen was in Jefferson savings which was in the Rio Grande Valley I live in McAllen Jefferson savings had been started by Lloyd Bentsen and his brother in Benson’s father back in the mid-50s and they controlled it up until the mid 70s when they sold it to a man named Guillermo Hernandez cart a lien Cartaya is one of the really bad boys of the Western Hemisphere he’s a Cuban exile fought in the Bay of Pigs was a member of the infamous 2506 brigade had been involved in narcotics trafficking money laundering gun-running terrorist activities out of Florida with a company called world finance the IRS the FBI had close to 200 people investigating world finance in the mid-70s and all was ready to pop Cartaya big when the CIA stopped them it came in and basically had the the investigation dismantled and as a result car tire was just convicted on income tax charges at that very same time he comes and buys Jefferson savings from the Benson family okay and proceeds to loot it and run drug money through it when the Justice Department came in to investigate car Tahlia we brought in by the Texas regulators an art eliezer who was the chief S&L examiner for the state of Texas brought in the feds the CIA came down and met with the prosecutor and asked him to back off Cartaya because of all the favors Cartaya had done for our government including it turns out scamming about thirty million dollars from the United Arab Emirates bank with the parent permission of the CIA in Cartaya that the Justice Department did not back off Cartaya on that deal he was convicted but his sentence was rolled into his our arrest sentence and I don’t know how many year you probably don’t get a couple years in jail the next year after that happened car tire was again indicted along with his partner camilla padre de another Cuban exile in Miami that indictment was stopped for some reason the Justice Department said later was flawed but just thought why they draw it up camilla padre de shows up ten years later as a partner of Jeb Bush the president’s son in Miami now when I found out about Cartaya and also Jefferson saves the fact Lord Benson had you know own part of them I called up Benson’s office I asked him about it I got his press secretary Jack Devore asking my questions you know what was Benson’s role in this essay I am you know what he owned did he know Cartaya etcetera etcetera and divorce said he’d get back to me that the senator was in some conference on the Canary Islands which is off the coast of Africa about an hour later Devore calls me back and said the senator never owned any stock in this S&L doesn’t know anything about never anything to do with it and so you sure about this she said yes I satisfied myself he doesn’t recall owning anything and say well that’s funny I got a document here from the SNL Department that shows he owned sixteen point seven percent of the original stock and continued to own it up into the 60s these these signatures are notarized you said I’ll get back to you thirty minutes later I get a call from Lloyd Bentsen himself from the Canary Ellen’s saying oh yes he had on stocking that but he got out of it the mid-segment and bought in Brazos port savings which later became Continental savings okay and then I asking about car tires a new us and what about the CIA interference he assured me that hadn’t happened because he would have known about it well in fact I got this story straight from the prosecutor that the CIA went to and so either Benson lied to Devore or Devore lied to me there’s no other explanation for it I mean they somebody lied I mean they told me a lie the dense that had never been only stalking this as now and if I hadn’t had that document they would have gotten away with the line now it’s interesting to note that this SNL that Benson bought after he got out of Jefferson became continent say these and that purchase was financed by Herman KBB so it’s possible that mafia money went to Lord Benson now when I asked to lure about that he said they didn’t know the BD was financing killing so it had no knowledge calculator got on that whether mob meant this was my money or not in fact it was well didn’t Benson also later and when he was running his vice president didn’t he put the kibosh on any investigation or statements and any of the debates about the SNL’s and that part of your book too yes well you know in 1988 the country knew we had an SNL problem we didn’t know the extent of it okay the the original estimates had been something like maybe 10 15 million dollars the Republicans of course were Bush’s the candidate did not bring up the s you know Benny Bush’s son tenido was right in the middle of Silverado savings which was about to be taken down in fact was taken down only a couple of weeks after the presidential election someone in Washington had called the regulators in Topeka Kansas that regulated Silverado and told them not to shut Silverado down until after the presidential election and that’s in fact what happened on the other side Benson was the Democratic vice-presidential nominee he went to the Dukakis campaign people and told them not to bring up the S&L crisis and so they did the democrats did not use that as an issue they could have pounded the republicans over the head with it or maybe won the election in haiti perhaps of course we had you know we had the Keating five for the Keating five were Democrats I mean the Democratic Congress had just as much to answer for as a Republican administration and so neither side wanted to bring it up of course both sides were being paid off by people like Mischer I mean they always cover their bets the the people I measure you know they support both sides so regardless of who wins they’ve gotten in and George Bush and Lloyd Bentsen are part and parcel of the same small Houston businessman circle they’re all term issues at the middle of Joe Russo is part of in a guy named Jim bath a CIA operative in Houston is good friends with George Bush and George Bush’s son George W Bush and has done investments for Lloyd Bentsen and was in business with Lloyd Bentsen son and bath of course ties in with Michigan got loans from issuers bank and it’s all a very tight little circle here that the Bush and Benson are two peas in a pod as far as being controlled and dealing with and a friendship with the same people and what about any other connections that Benson might have to the SNL crisis other than him owning this one SNL for 20 years did he have investments in our connections with other SNL’s who were involved in the crisis or did he do things as a senator that might be involved in making sure there’s no investigations etc well I don’t know if he ever directly intervened but he certainly didn’t push for it and he was head of the Senate Finance Committee that could have done all sorts of investigations he never did I mean in fact he did his best to see that the crisis was not brought up he had three savings and loans at one time it all ended up in the hands of either the Mafia the CIA people Jefferson savings went to Cartaya Continental savings went to Carol Kelly was financed completely by Herman KBD and Ben Franklin say these later ended up in the hands of Walter Mischer now that this in and of itself is absolutely incredible that SNL’s or banks or any institution can be sold to mafia controlled groups how is this even possible well it’s possible because the people in power either don’t know or don’t want to know that these are mafia people in louisvil you know the Justice Department had not done the kind of investigation required the Federal Home Loan Bank board wasn’t doing investigations and the press was not reporting of course everybody knew who BB was from the Dallas Morning News wrote about BB in the texas random acts scandal but seemed to forget about it you know ten years later when they’re back involved in SNL’s and no one you know raised plummet when you’ve got Congress not doing anything we got the Justice Department not anything we got the press not do anything that the public is not going to find out and nobody’s going to know and what did Benson say that he didn’t know that these were mafia connections that he just sold his interests and someone bought them and he didn’t investigate well I think he knew who you selling to but he he could say we didn’t know the money was coming from the Mafia well that’s you know that’s the kind of ignorance we don’t need if indeed he didn’t know I mean it’s an ignorance that’s almost criminal I mean if it’s not if it’s not you didn’t do anything criminal by actual knowing and intending that it happened his ignorance borders on recklessness people we have a lot of more questions for you and we’re out of time for this program but would you like to continue on and do a second program we want to get into how you got this story and incredible information that you got and then wove together and the problems you had and getting stories printed and also getting the book published we would you would you stay here and do us the favor of that sir great welcome to the second part of our alternative views interview with author Pete Bruton Pete is just published a book called the Mafia CIA and George Bush and on our last program we told how P analyzed the connection between the CIA and the S&L fraud and how he discovered that George Bush and his family unsavory folks connected to the CIA and the Mafia as well as associates of Texas bigshots such as senator Lloyd Bentsen and Houston power broker Walter Mischer were all involved in the SNL fraud which was one of the greatest u.s. financial catastrophes and crimes in our history today however we’re going to talk about how Pete came to break the story about his experiences as a Houston Post reporter in which he discovered the connections between the SNL and the CIA scandal how he decided to write a book his experiences with Simon & Schuster and how he finally got his book published and what the response of the book by the media has been you’ve been tracking this SNL thing for a long time what is the magnitude of the scandal well we we all hear about is going to cost taxpayers about five hundred billion dollars that includes a little over two hundred billion of actual losses that the SNL’s have incurred that failed that the taxpayer is going to have to pay back but when you throw in interest in carrying costs you get over five hundred billion dollars in direct cost that the other costs are almost as bad what these fraudulent SNL’s did was create an artificial real estate bubble where they inflated real estate values artificially very much and then the bubble burst and that sort of spread out that the fallout from that spread to the banks and insurance companies and any other financial institutions that were lending on real estate and so one of the reasons the banks are in big trouble now is their real estate portfolio and the larger 8a such a portfolio Bank is the more trouble it’s in so that the effect spread out through the economy in the real estate value so it’s not just five hundred billion which is an incredible hit but also the indirect real estate effects I guess also you could crank into this the amount of money that was skimmed and stolen by all these people was money which did not go into productive resources so that we’re losing out from that aspect also absolutely I mean when you think about somebody is estimated that the actual cost when we start paying back to tonight’s mayor is going to be twenty five billion dollars a year from now on forever if you think about what twenty five billion dollars every year what we could have used for that and then when you think about the money was basically looted and stolen and that Congress and Justice Department are not trying to get it back and that’s one of the keys to all this is tracing the money and also trying to recover it there’s been none of that I mean Congress doesn’t want to do it because they’re involved up to their eyeballs we start tracing this money like you did with the Keating five you find it comes in somewhere it comes back to their own campaign in the chest and the Justice Department which is controlled by the the president of course has not tried to track the money they’re interested in just getting the frontman and the cutouts in the middle into guilty pleas and go to jail maybe for a year or two and then go on to the next one so they rack up all these convictions but they don’t try to really figure out what happened and where the money went who benefited one of the reasons why the government has not done any real prosecution or investigation of this scandal is because they’ve been involved in it going all the way to the top up to George Bush we didn’t really get into last time the complicity of George Bush’s son Neal in a SNL scandal the Silverado case perhaps we can go into that as an illustration of how the SNL gondol word and the complicity of top establishment officials in this crisis sure we all know that Neal was a director of Silverado savings in Denver Colorado and that when he was on the board of directors he was being supported financially by a couple of Denver businessmen named Kim good and Bill Walters at the same time Walters and good were borrowing huge amounts of money from Silverado and in fact Neal got his hand slapped in administrative action for approving loans to his business associate bill Walters what we don’t know what hasn’t come out really before or the connections between not only good and Walters but to other silverado borrowers to mafia people and to the CIA and we find that if you look at Bill Walters bill Walters was the largest borrower at several auto savings he signed on about a hundred thirty million dollars of loans in addition he sold property to silver out of about ninety million dollars Walters was a Denver architect Walters and his partners including a guy named Richard Ross Miller were involved in the Texas Renta bank scandal back in the mid-70s with Herman KBB I mean Dede was in bed Barnes were involved and deals with these people and BB specifically had transferred about a million dollars to Richard Ross Miller built their Walters partner and they had all owned a bank in Marshall Texas that was involved in the Texas Renta bank scandal and we found that Walters was also apparently and had been accused of transferring some of his ill-gotten gains to a trust on the Isle of Jersey that was being funneled drug money was being laundered through it by people in Miami and SNL money from people like Robert Corson the CIA agent was going also going through this trust fund Ken good who barred over 40 million dollars from Silverado and was Neil Bush his sugar daddy for several years had also barred money from Western savings and down it was part of the Herman KBB circle the biggest company that actually dealt with Silverado was MDC Holdings it was whose chief executive is Larry my cell my cell was a big Republican donor he held fundraisers that George Bush went to and Mizell had established trust funds by gun by a Chicago law firm whose partner was Burton Kanter Burton Kanter was one of the founding fathers of castle bank and trust the bank and the Bahamas that the Mafia and the CIA were using he was involved with CIA projects mafia projects in California and other mafia figures and here we have his trust you know Larry Meisels trust fund being set up by Burton Cantor’s law firm and Burton Cantor was also a close associate of Lawrence Freeman the Miami lawyer who had worked for Paul Helliwell the CIA founding father and works for the Mafia and had been involved in the big florida land deal that robert Corson’s S&L was funding we find this circle you start pulling on this thread you look at the people involved and still write on your back with the Mafia the CIA now how did Neil Bush get involved in all of this what was his initial connection with Silverado what did he get out of it Neil Bush had gone to Denver after getting out of college and was a land man for Amoco I believe was me and he went tried to secure leases so they could drill on the land and then Bill Walters and Ken good set him up in his own company okay they were both big Republican donor a kid good went to the inauguration party with Neil Bush in Houston in 1988 when Bush won Bush visited bill Walters home in the 1984 campaign Bill Walters tore up all his brown grass and laid new green grass on his lawn just for George Bush’s visit we can they were pumping money into neo Bush’s company there was drilling dry holes in Wyoming was not making any money he was being basically salary of being paid by these people and his company got a big line of credit at Bill Walters Bank so they were supporting him Ken good put him on the board of directors of a Florida company head was paying him over $100,000 a year in directors fees outrageous twelve million dollars I mean $12,000 a month was going to Neil Bush for just serving on ken goods board they were basically keeping him going and he held protection money it sounds like well you know it’s almost somebody made the analogy that Neil Bush was sort of like the driver of the getaway car and you know the cops weren’t going to shoot at the president’s son and so far all we’ve had is one indictment the the CEO Michael Weis is the only indictment so far on Silverado savings now what about Neil Bush and Silverado what role did he play well he was in particular a director and he approved loans to his buddy bill Walters he also approved loans to the second largest borrower at Silverado was a Houston con man they meet Ron Starnes storage bar at 77 1/2 million dollars from Silverado six months after he donated $30,000 to the Contras and when it had a meeting with Ronald Reagan and Oliver North and he also borrowed over 25 million dollars from Continental savings in Houston that was supported by mafia money from Herman KBB and Starnes was also involved with John Whittle the guy who was transshipping arms to the Middle East and had had gotten support from allied bank Walter Mishra’s bank and he turns out to be the second largest borrower at Silverado savings so Neil Bush was was basically just sitting on the board almost like a figurehead but approving these loans and you know helping his buddies out and Jane paid also for it as a dryer that’s correct although not nearly as much as he got from from being a director I’m kidding company let’s talk about how you got this incredible story now your book is to me a masterpiece in the sense that everything is so complex there’s so many interconnections and so many layers of activity and yet you were able to lay it out so that it it makes sense and you can follow it my first question is how did you get all this voluminous material and keep track of it well I’ve been working on for over five years I mean anybody can probably collect that much information in five years you know you I’ve got three four-drawer file cabinets full of documents that support all this information but I mean you just take one step at a time and when I first started on the SNL story in the spring of 87 and looking at one deal at Mainland savings in Houston when it failed in 86 was the largest failure in the country and you start running into roadblocks and people not talking you can’t get documents and nobody is being prosecuted the money hadn’t been tracked and nobody’s trying to get the money back dan you start saying something dig is going on here and you start pushing I mean if we had run into the roadblocks we might have stopped with that first story but when you start running it everywhere people covering up the government not doing anything nobody’s seeming to care where are these billions of dollars went our care to try to get them back that’s when you start looking for you you know you know you’ve got a big story and so you just keep going I mean everywhere I looked I found something it was like I mean being in the old business everywhere you dig a hole you hit oil I mean every rock you turn over something scurries out from under it and it’s just it was a wonderful story in that sense well you have I mean divorce decrees were significant thank you like this yeah well you know that the SNL’s do not the documents that the S nails are not public the loan documents where the money went the closing documents the public can get and reporters cannot get them we cannot track the money we don’t have subpoena power so the things you rely on are lawsuits and deed records basically and so the divorce decrees are in divorce lawsuits are very they have a lot of good information in them let’s go into the history of how you actually came to write this book starting with your first stories with the Houston post in the spring of 86 I was working on stories involving charitable foundations and hospitals that were not doing enough services for the poor and a business report at the post named Greg C got an anonymous call from a guy that we had we dealt with for over two years and we his nickname was DT which was you know a shark for deep throat and for a long time we didn’t even know who he was well this guy calls up Greg and tells him he should start investigating mainland Savings and there its deals with a man named Howard Pulver so Greg starts doing this and we eventually found out at Pulver and his partners had over 300 companies and they were doing deals with mainland all over Houston and Greg just found himself drowning in a sea of records there were thousands and thousands of pages of records in the the real property records of Harris County on these deals with mainland so I was asked just to come help him sort out the records and we did that and then we went and interviewed Raymond Hill the chief executive officer of mainland savings and Hills attitude was was the most arrogant that I’ve ever encountered in my career as a reporter and basically he accused us at one point of stumbling in the same direction as the FBI and I knew I had a big story just the way he was acting like we can’t touch him and and sort of really thumbing his nose at us that I knew that there was a big story there and and we immediately ran into the Mafia there was a when we were trying to track the deal with with Howard Palmer who lived in Kings Point Long Island outside New York and his partners were off in New York City that came down it took close to 100 million dollars out of mainland cities left them with with promissory notes that were worth you know probably less than 10 million dollars a huge ripoff and contributed greatly to the failure of mainland savings at the same time he was doing this mario Rinda was brokering money into mainland in fact there was an indictment in brooklyn by the organized crime strike force talking about the money mario Renda was skimming off of his deposits and placing in various SNL’s and one of them was mainland so we knew we had something maybe went up to New York City and we found rendus partner this was a guy named Martin Schwimmer who was also laundering money for the Lucchese Mafia family okay when we went to talked to Howard Pulver and the markzware we found they lived across the street from each other in Kings Point New York which is a very wealthy suburban Enclave on the North Shore of Long Island very exclusive and so here we had Schwimmer pumping maybe a hundred million dollars in deposits in the mainland and the guy lives across the street women taking about a hundred million dollars out the back door and so we knew he had something very big then and then when he found we started tracking Rendon and then we heard about Herman KBB Louisiana mafia associate who was involved in all the failed Texas s Mills we started tracking BB and then we find BB and Renda together it’s so many different plate here’s a New York Mafia associate in a Louisiana mafia associate both at the same places the same times across the country so we know we knew that there was a big big story here who are you shocked or surprised to see that the Mafia was active in looting these sno banks in Texas or had you studied organized crime before just on a couple of occasions we’ve run into every that the myth is there’s no organized crime in Texas and it’s it’s it’s wrong it’s just flat wrong they’re out there a couple of small indigenous Mafia families in Texas been a big mafia family but it Texas is basically under the aegis of the Louisiana Macross Marcelo Mafia family and there’s there’s a lots of mafia activity in Texas I mean of course any time you have you know people like the old Texas oilman that naturally like to gamble I mean the way the Mafia gets their their foot in the door and their fingers into a community new communities through gambling I mean that’s the way to do it and of course all men naturally love anybody likes to Gamble’s got all that money I mean they’re going to have to if you bet big on anything illegally you’re dealing with the Mafia probably where you know it or not and if you don’t pay up you’re going to find out in a hurry there’s a question yeah and and that we found that if you look at all the the congressional crime committees and in there studying of course Marcel you find in one case where he was talking to a Houston bald man named Josie in one case and and we find John Meachem jr. the Houston or man dealing with the Marcelo’s so it means you find them in Texas and dealing with a lot of the big wheeler dealers and power brokers the story was this was running in the Houston post but I’ve noticed in studying local power structures in the media that the usually the local media don’t take on or expose any of the activities of local power brokers but you were writing about Mischer well I was writing about him but none of the stories on Mishra running until all this over century yeah when we had done we spent two years working on the Mafia and then we fell that about the CIA and I spent another year working on the CIA and that’s when I ran into Misha former son-in-law Robert Corson and then all the connections when I started looking at Mischer the connections of measure to the SNL players and that took me about a year to do and in the fall of 1989 we were ready to run with the CIA SNL stories and Walter measure of course was the center in the center of it and and he his story the story that he’ll was scheduled to lead it off I mean because he’s the glue that holds all this together and it’s very difficult to understand the story without Walter wisher now there may be somebody above measure telling him what to do and I was told by a couple of people in Houston that there is indeed but I was never able to identify that person if indeed that person exists but Miz sure was is the key middleman the key broker of all the deals and with that end it’s very difficult to understand these stories the stories were scheduled to run in the the winter of 1989 we sent them over to the Houston post law firm Fulbright & Jaworski to read for libel they sort of read all the stories for libel and try to give us advice usually they they had the authority although they shouldn’t have to kill stories that they thought might get us in the liable trouble well Fulbright & Jaworski went through the ceiling on mission they immediately reacted that we can’t run this stuff and gave a lot of bogus reasons for not doing so so we began in the in February of 1990 to run the CIA stories but nothing on Mischer we had Corson we had a Kansas City guy named Farhad Azima we had a little savings alone Atlanta called people’s that was was lending money to CIA people in Florida we had silverado savings in San Jacinto we ran all these these stories but nothing on mission and we ran out of stories eventually in the summer of 1990 it must been difficult to write your story with the main actor not being able very difficult and and most of the national media reacted negatively I mean they they did not pick up the story they said you know they it was too hard to understand a lot of other reasons I think and also the Houston post is to blame for what they were not running a big series they would just have one story and wait several weeks and run another one and wait and I think it’s just because they were afraid of the story and they were afraid you know they just kind of wanted to stick the little foot in the water and see if it got bit off and then run another one if it didn’t and so they were they were released sporadic ly and there was no measure in it so a lot of the national media does not pick up I don’t know if it run them as a series and had measured whether they had any more impact it’s difficult to tell the national media really handles the CIA with kid gloves and we can talk about that later why if you’d like to but anyway we’ve run out of stories so I went back to the Mischer stuff I tried to get that in again and the editors signed off on it they approved it I thought I’d met all of Fulbright & Jaworski objections they were scheduled to run in the last of December of 1990 and then at the very last moment for Ron Jaworski refused to sign off on the stories the editors even though the city editor wanted to run them and and really recommended running them over for Roger skis and objections the editor in chief decided not to do it not through the mystery stories now during this period I was talking I was at my folks ranch it was Christmas time I was talking to the city editor and the for Brian Jaworski associate that was handling the mr. Styles got any tom god bold and I was talking on the front of the city as you said God Baal won’t sign and and I was I was furious and I said he’s jobs probably on the line I bet he won’t get made partner if he doesn’t kill these stories you know I was just just talking I was mad well six weeks later I’d taken leave of absence to write work on the book and I had lunch with the city editor and he looked at he said guess what God Bo just got made partner and that’s a little bright and be norske so that’s when I started looking for conflicts of interest now a year and a half earlier when God Bo was objecting to all the mission stuff I directly asked him do you have any just foreground rescue have any conflicts of interest with these stories and he said not that I know of okay when I found close to a dozen conflicts of interest including the ferry full runs were ski was representing mistress company in a wrongful death lawsuit at the same time they were telling us we couldn’t run these stories about Walter Mission in addition they were also doing other things from Mischer as well as doing legal things for Palmer National Bank this bank in Washington DC they had represent Howard Pulver’s company in an insurance deal and on they had laundered money for a for the CIA basically through the MD Anderson foundation and conflict after conflict I dug on for Ron Jaworski now I went to the Houston post I told them about these conflicts and the Houston post did nothing and so I knew that then I could not go to back back to work for the Houston post if I’m going to have to run everything through Fulbright & Jaworski he was serving as the ultimate editors and all these stories so was it at this time you decided to go the book route that you’d resigned from the Houston post and try to write this up as a book well actually it had happened earlier during the middle of the stories I were writing for the the post in the summer of 1990 Simon & Schuster came to me actually approached me with an idea of writing a book for them Simon Schuster is either the first or second largest publishing company a country in this company in this country and very prestigious and they flew me up to New York City rolled out the red carpet and made me a very big offer to write the book for them hundred thousand eight hundred thousand dollar advance which is probably bigger than any advance on a savings and loan book it has been been written and so we began negotiating a contract and I was insistent in the beginning at the very beginning that the book be published before the 1992 presidential election when this isn’t by the way to summer of 1990 and because not only because of what I found on George Bush but what I found on Lloyd Bentsen and at that time it certainly wasn’t beyond the realm of possibility that the 92 election was going to be Bush versus Benson and in fact if you recall when Clinton had all the trouble and earlier this year with in january/february ennifer flowers and the draft he said that if he dropped out he was going to throw his support behind Lloyd Bentsen and now we have Benson being the leading candidate for the Secretary of Treasury okay so I was pushing very hard and for Bryan’s work ski actually modified their standard contract to shorten the time between acceptance and publication insider new Simon Schuster I’m sorry to short the time between acceptance and publication and I eventually signed a contract with am in and when I took a leave of absence from the post to write the book I submitted the book on deadline and I got back an editing letter a couple of months after that that totally was something wasn’t exactly right here because they wrote me a four-page letter that was just full of diagonal cents and he was not helpful at all and when I submitted the manuscript on deadline I again put in writing that the book had to be published before the 1992 election in writing so we begin the editing process and I tried to accommodate their suggestions and I really couldn’t I made some alternative suggestions they okayed it I submitted a revised manuscript in February of this year in 92 and after they got the revised manuscript but before they’d even read it they really cut me off they would not return my phone calls my faxes my letters nothing and so I was fairly desperate at that time and I knew that they had what they call their fall list the list law books they published in the latter part of the year and I knew that my book had to be on there to get out before the election and so when they wouldn’t return my phone calls or talk to me I eventually made an appointment just to fly up to New York City and see them and if that was that only at that time that they that they returned my phone call and I told the editor who was Alice Mayhew who was Bob Woodward’s and a very famous editor you know that the book needed to go before the election we needed to get going and she said she wasn’t going to do that we’re not going to do the book before the election and I said why not you know all this stuff about boosting American public needs to know and she said quote George Bush is going to win anyway and she turned out to be wrong but even so it struck me as non-family what difference does that make about getting getting the information before the public and in what how does she know that what’s going to happen in it was again in ten months or so but why do you think Simon & Schuster refused to publish the book before the election was ready to go right well as it was basically ready and if they wanted to they could have he was not me stylish hughster is a very big company I mean I eventually got the book published before the election with a small company I mean they could have put two editors on it and we could have done it they didn’t I don’t know I mean I don’t want to speculate on their motives but there’s some interesting connections in fact I knew this going in I knew about the connections between Simon & Schuster and George Bush and the Houston power broker Oh what is that well when a george bush’s best friends and longtime business associates hewlett key chair labora depends oil is on the board of directors of Simon & Schuster’s parent corporation paramount communications & hué Lake he’s actually in my book in regard to a very strange bank in Houston that he was on the board up also paramount communications used to be is the successor company to Gulf and Western the conglomerate that were one of the founding fathers is John Duncan of Houston whose brother Charles was Secretary of Energy under the Carter Administration and these people are in investments with people who connect to Walter mission and and back to George Bush and so I knew this going in I just thought it’d be poetic justice for silence you stir to publish this book you know but apparently they knew about it too I guess Pete you’ve been you’ve been dealing with some pretty unsavory and dangerous characters here the CIA and the Mafia have you had any threats on your life or you been fearful of it well I’m not that I know you know kind of slow maybe I got threatened I didn’t realize it but nothing directly I mean that these people usually leave reporters and late on you know threatened reporters I mean they may try to keep the book from being published or they might threaten you and even I’ve been threatened with lawsuits oh I mean they will do that but not physically threatened and you know they the way they operate is to keep people like Simon Schuster from publishing the book or keep anybody from posting or keeping it from being distributed and so you know they work indirectly not now I mean if anything happened to me that would just bring more publicity on this and which is the last thing they want I mean that the way they’re reacting to the book is that they’re really sort of kind of hunkering down and ignoring it and figuring that any publicity will will will vanish eventually and disappear have you been contacted by Larry King yet or any of them know the national media show no interest in this the only one exception is the Village Voice that published day excellent the article on your book and on your research by Jonathon Whitney who is also an investigative reporter of some renowned write that happened when scientists used her told me they were not going to publish before the election I contacted kwitny I had been in touch with Jonathan Whitney because he’d written a number of books on the site on the Mafia and the CIA and you know I wanted to sort of do a reality check and send the manuscript acquit me and ask him whether he thought it should be published before the election just to make sure that I wasn’t hallucinating maybe Simon Schuster was right and so I sent the manuscript too quickly and he read it and agreed with me that it should be published before the election and he was helping me you know get the information out and that actually was what had gone to a number of different publications to try to do you know a serialization of the book and eventually those boys did it but just barely before the election and even though the book was printed four weeks before the election it really didn’t get out I mean it should have been out in the summer and I really apologize I did everything that I didn’t have and if so you told somebody and say May of this year that you could get a book published in five months they would have laughed at you so it was not possible well we did it but just barely Pete let’s talk a little bit about the sort of final response of your work by the establishment by journalists Congress and then possibly the public and how you reacted to the sort of non response of the sort of journalists establishment and then the Congress you yourself was a reporter for the human Houston post you published these articles about the CIA and the SNL’s were explosive investigative reporting and they just weren’t picked up by the national media what did this lead you to conclude towards the press in the United States well just change your attitude anyway well I mean some of the press picked up stories but the the television networks and the big three the New York Times The Washington Post The Wall Street Journal never did anything and I personally think the reason they didn’t was because it wasn’t their story okay and they like to do their own investigative work and they were very far behind it would have been impossible for them to do the work it would take to do these stories in a manner that would you know there would be a good job and these these institutions had not even done the S&L stories right I mean they had ignore basically nor have done a little bit but it was all that they were just recycling the work that had basically been done by the Dallas Morning News and Byron Harris WFAA in Dallas which was to write about all the wheeler-dealer Don Dixon ed McBurney types and that began to be sort of the pattern of investigative reporting if you did investigate reporting on SNL’s you rat wrote about all the while and crazy guys down at Texas that were looting this these SNL’s and you didn’t do what you should have done which was follow the money but that’s the big advice you know deep throat gave Bob Woodward in Watergate follow the money that’s where the that’s where the story is that’s where the story is in the SNL’s that the reporters did not do that it was right about the front men a while and crazy guys so these institutions did not do a very good job on the SNL’s so they didn’t have the foundation to do either the Mafia or the CIA involvement so you know if if you don’t do something they’re the kind of institutions of people that just ignore it you know it’s not our story it’s not worth doing we’re just going to ignore it you know if we didn’t do it it must not be worth anything so that’s luckily what happened now what about Congress when you first made these revelations that the CIA was involved in robbing the CIA the savings and loan and using the money to help support the Contras and other illegal off-the-book operations Congress made some noise that they were going to do some investigation what came out of this well actually the house permanent Subcommittee on intelligence which has oversight of CIA did a preliminary investigation by their staff and it eventually came up and said there’s nothing to this but it’s interest there’s several interesting points to note number one they never did what they should have done which was tracking the money they relied on the CIA for all their information and even the CIA admitted that of the like the 20 institutions we named that they had dealt with for them and that they had dealt with five of the individuals we’d known but they had done nothing wrong and the thing is that the staff director of the House Intelligence Committee who was overseeing the investigation guy named dan childs had come from the sea was the the chief financial officer of the CIA and had been brought over to the intelligence subcommittee right before my stories came out and the CIA of course was aware the I had been talking to them for months so they knew that my stories were going to break soon dan childs also had been brought in ten years earlier in the Senate Intelligence Committee that had been doing the church investigation was exposing all the illegal domestic activities of CIA childs had been brought in for damage control it certainly looked like he was being brought in for damage control and in fact after they released their report saying there was nothing to this child’s went back to see now he’s the executive assistant to the CIA director this is shameless it’s like this guy who was put in charge of investigating iran-contra who is another lifetime CIA operatives station chief about six different places as you point out in your book so basically Congress didn’t do anything no they covered it up the press really didn’t do anything and now the Clinton administration faces as much as a five hundred billion dollar price tag for the CIA a scandal so what can the government finally do about this Congress and the Justice Department can track the money that’s all they have to do it if there was fraud involved they can get it back and they haven’t done this I mean everybody’s acting like it’s a foregone conclusion that we’ve lost five hundred billion dollars you know okay taxpayers take the hit and go on it’s not true the Justice Department is very capable of tracking this money they can track drug money it starts out as cash in United States goes offshore and comes back surely they can track S&L money it’s always a paper or wire transfer it’s easy to track if you got subpoena power Congress could do it but they’re not doing it and I don’t know whether Clinton is going to make the Justice Department do this or not you know where it’s going to be interesting a new Attorney General is going to be and whether they’re going to go out I mean I don’t see any indication of Clinton’s part that he has any interest in kicking this sleeping dog and I think he just wants to let it lie and not mess with it because his party is just as involved as a Republicans and so I don’t see there’s going to have to take just be masse revoked by the American people and American people don’t have the information so what is the responsibility of the press and the citizens to do something about this S&L scandal well I mean the press has got to do the reporting and the citizens have to do the complaining

44 comments on “The Savings and Loan Banking Crisis: George Bush, the CIA, and Organized Crime”

  1. J Lamrocks says:

    great video

  2. Mah Be says:

    Finally—proof that this has been going on 4 a longer time that the masses thought!

  3. ADDAM B says:


  4. ADDAM B says:


  5. ADDAM B says:


  6. ADDAM B says:


  7. ADDAM B says:


  8. Erwin says:

    why the constant yelling.

  9. Dave Mercado says:

    hence the media. why would they ask a real/tough question, when they'll loose their job?

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  11. Roberto Arredondo says:

    Shing shingle

  12. Erwin says:

    im not deaf, just ignoring you.

  13. ADDAM B says:

    OH, OKAY

  14. onceANexile says:

    That scheme cost the American Taxpayer 1 million dollars a day for 500 years….think about that!

  15. onceANexile says:

    Island of Jersey-..huge corruption protected by the Queen of England….

  16. onceANexile says:

    Unbelievable…total corruption….

  17. onceANexile says:

    I just bought the book..

  18. onceANexile says:

    this material is so important…

  19. kingchrisepoo says:

    Book sales must be tough, especially since this story has to be put online.

  20. kingchrisepoo says:

    Mafia?, CIA?, president?

  21. Pete Repeat says:

    proof that USA is the most corrupt country

  22. Karla Elizabeth Noriega Vega says:

    »®®¢¢§€®¡¢€^¥ $

  23. gipper086 says:

    True America has a lot of crooked SOB"s in charge. The queen of England is also a real monster. What about The Mohawk Institue in Canada which she and Pope Ratzinger ran.

  24. gipper086 says:

    The Mohawk Institute in Canada. The queen and Pope Ratzinger both charged with human traffiking and genocide, yet the mainstream public never knew. The damn Bushes and their Bohemian Grove antics. Israel and all their egyptian crap Is-(Isis egyptian throne god) Ra-(sun god) El (god of earth and wind). Everything is all messed up. If you want to see something really strange look up "fetus in a jar" with Barbara Bush interview. All the people in charge are evil SOB's.

  25. onceANexile says:

    hmmm. …no doubts!

  26. WHAT says:

    Lol bitchs

  27. TheManfromNibiru says:

    CIA and the MAfia people ? no way ! John Brennan is going to clean it up. That Rodriguez might be over there in Miami water boarding and drowning people.

  28. Abdulrahman Najar says:

    Have you seen MAD Muscle Ripper? (Google it) It is a quick and easy way to build muscle fast.

  29. Georgiy Tretiyakov says:

    If you come here, then TRAFFIC – works

  30. molly Ring says:

    They say they are anti-racist. What they are is anti–White. Anti–racist is a codeword for anti-White.

  31. jerry orban says:

    i was demolition contractor on resolution trust corp asnd silverado bank

  32. Cynthia Allaire says:

    “the S&L “crisis” was a $160 billion ripoff by the mob, the CIA and George Bush and Sons” – the CIA looted at least 22 S&L’s as a means of funding the Contras after they were cut off by Congress with the Boland amendment. Papa Bush was instrumental in deregulating the S&L’s in order to facilitate the looting. Thanks for exposing this. I read about the S&L scam in the Nation when it was a newly breaking story, but I don't recall any mention of the CIA connection in that lengthy article.   

    “The Mafia, CIA & George Bush [review]
    By Joseph A Olson, PE on September 12, 2010
    I bought my first copy of Pete Brewtons “The Mafia, CIA & George Bush” in the election season of 1992 from the author at a folding table set up in front of the Harris County Courthouse. Retail sales of this accurate history were deemed ‘inflammatory’ and barred from major booksellers inventory. I was a newly registered engineer in the eighties and had direct, personal knowledge of at least a dozen individuals and over fifty of the fraudulent real estate tranactions that are documented by Mr Brewton.
    I was introduced to the concepts of “other peoples money” and “creative bankruptcy” by these very players, years before these terms were part of the popular vernacular. I was a first hand witness to these intentional crimes and am very knowledgable of the processes involved. So endemic was this condition in Houston that it was near impossible to avoid contact with these dirty players. The “S & L Robbery” was the model for the Enron, Dot Com and 2008 Banking TARP frauds that were to follow. I have bought a second copy from Amazon to share with those who are recently awakened to this criminal syndicate presuming to rule the entire world.”

  33. Bezz80 says:

    Now there is never any investigations, just lie after lie from everyone, politician and media and if a whisper of it hits the public its labeled a conspiracy theory and the public has been conditioned to just believe that and go on with their heads in the sand.

  34. RobynLovesPeace says:

    Excellent interview.

  35. Ree La'star says:

    just subscribed this channel subscribe back/

  36. Ema Tank says:

  37. I Am The Savage Doge says:

    what in the world

  38. RockN Rolla says:

    че за хуйня

  39. disk0__ says:

    God damn I need that Bush crime network poster

  40. KentAllard says:

    16:00 The CIA probably got involved with these people from Cuba when they teamed up to try to oust the Communists, the mob lost a lot of casinos they laundered money through.

  41. Colak Gulinyan says:


  42. Faruk Ahmed says:

    এল কে হাজার 930 প্রোগ্রাম সেটিং

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