General Discussion

The Bush Family: A Continuing Criminal Enterprise?

Gary W. Potter, PhD.
Professor, Criminal Justice
Eastern Kentucky University

The S&Ls, the Mob and the Bushs

During the 1980's hundred of Savings and Loan Banks failed. Those bank failures cost U.S. taxpayers over $500 billion to cover federally insured losses, and much more to investigate the bank failures (Pizzo, Fricker, and Muolo, 1989; Brewton, 1992; Johnston, 1990). More than 75% of the Savings and Loan insolvencies where directly linked to serious and often criminal misconduct by senior financial insiders (Pizzo, Fricker and Muolo, 1989: 305). In fact, less than 10 percent of bank failures are related to economic conditions, the rest are caused by mismanagement or criminal conduct (Pizzo, Fricker and Muolo, 1989: 305).

A good example of the Savings and Loan failures can be found in the activities of Mario Renda, a Savings and Loan insider who often worked in close collaboration with organized crime (Pizzo, Fricker and Muolo, 1989: 123-126;302). Renda served as a middle man in arranging about $5 billion a year in deposits into 130 Savings and Loans, all of which failed (Kwitny, 1992: 27). Many of these deposits were made contingent on an agreement that the Savings and Loan involved would lend money to borrowers recommended by Renda, many of whom were organized crime figures or people entirely unknown to the banking institution involved (Kwitny, 1992: 27).

SNIP...

Prescott Bush: The Yakuza’s Frontman

Finally, and perhaps most seriously, the Bush family pioneered the practice which has now become commonplace of collaboration between corporate and organized criminals. Prescott Bush, uncle of the current President and brother of the former President, played a key role in helping the Japanese Yakuza extend their financial and real estate holdings to the United States. In 1989, Prescott Bush made arrangements for a front company for Japanese organized crime groups to buy into two U.S. corporations and to make a sizeable real investment in the U.S. (Helm, 1991a: 1; Isikoff, 1992: A1). West Tsusho, a Japanese corporation, was identified by Japanese police officials as a front company for one of that country’s largest organized crime syndicates. Prescott Bush was paid a fee of $500,000 for his help in negotiating West Tsusho’s purchase of controlling interest in Assets Management, a U.S. corporation (Helm, 1991a: 1; Isikoff, 1992: A1). Bush also assisted the Japanese mob in investing in Quantam Access, a U.S. software company, which was ultimately taken over by the Japanese (Helm, 1991b: 10; Isikoff, 1992: A1). Both companies ultimately went into bankruptcy (Isikoff, 1992: A1; Moses, 1992).

George Bush Sr.: Shutting Down the Organize Crime Strike Forces

Despite assessments from senior law enforcement officers and experts on organized crime that efforts to control organized crime would be crippled, in December 1989, the administration of George Bush, Sr. abolished all 14 regional organized crime strike forces (McAlister, 1989: A 21; Struck out, 1990). The organized crime strike had been created as independent entities so they would not be subject to political influences or bureaucratic wrangling within federal law enforcement. In the two decades of their operation the strike forces had secured convictions of major organized crime figures in several U.S. cities (Struck out, 1990). It is at the very least curious to note that the federal strike force in Miami had been responsible for indicting Miguel Recarey, the man for whom Jeb Bush had intervened with regulators. Organized crime strike forces had similarly indicted Mario Renda, the organized crime liaison to the S& L’s, as well as several other key figures in the Savings and Loan Fiasco (Pizzo, Fricker, and Mulolo, 1989: 112, 120-123, 303, 337).

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