McCain's Son Sat on Troubled Bank's Board (WSJ)

McCain's Son Sat on Troubled Bank's Board
Silver State Bancorp
Is Facing Big Losses,
Regulatory Scrutiny

By DAMIAN PALETTA, DAVID ENRICH and ELIZABETH HOLMES
August 15, 2008; Page A3



Sen. John McCain's son served until last month on the board audit committee of a Nevada bank that is struggling to survive amid mounting losses and regulatory scrutiny.

Andrew K. McCain, 46, was on the board of Silver State Bancorp for five months before he resigned on July 25 for unspecified "personal reasons," according to a news release issued by the bank at the time.

A week after Mr. McCain's departure, the Henderson, Nev., company reported a loss of $62.7 million in the second quarter and said its capital -- the bank's cushion to absorb losses -- had eroded significantly. At the same time, Silver State announced the resignations of its chief executive and chairman.

On Thursday, the bank said in a securities filing that it actually lost $73.2 million in the second quarter. Silver State also said in the filing that its worsening financial condition means there is "uncertainty about the company's ability to continue as a going concern."

There is no evidence that the younger Mr. McCain committed any wrongdoing, or that Sen. McCain, the Republican presidential candidate from Arizona, had any knowledge or involvement in the bank's woes, which partly stemmed from troubled construction and land-development loans.

But with banks across the country struggling amid the credit crunch and the economic slowdown, the Republican presidential candidate's family ties could emerge as an issue on the campaign trail. The younger Mr. McCain's associates had urged him to step down from the board of Silver State, saying it could become a liability in his father's White House bid, according to a person in the local banking industry familiar with the matter.

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http://online.wsj.com/article/SB121876461747243159.html?mod=hps_us_whats_news

Recommended :kick: #1

to ensure that the bank used sound financial practices. Sounds like McCain was not fulfilling his duties, as experts have been predicting the mortgage meltdown for quite some time.

How surprising (NOT!!!) that he would bail out before the mess he helped create is exposed to the public.

If he had nothing to do with the bank's operation (and thus failure) he should return the salary he was paid. What would he have been paid for?

Wow, THAT'S never happened before! :eyes:


Though it is nice to see this in the WSJ, the GOP's paper-of-record.

We all know that DU is a source for MSM stories, apparently even for the WSJ! ;)