McCain Admits Errors in Relationship With Keating

Sen. John McCain said Monday that he made serious errors in his relationship with Charles H. Keating Jr., the embattled chairman of the company that owned Lincoln Savings & Loan, but that he never helped Keating and did not abuse his office.

The Arizona Republican held a lengthy news conference a week after it was reported that he had accepted vacation trips from Keating and that his wife and father-in-law had invested funds in a Keating shopping center project.

McCain also said he realizes now that there was an appearance of impropriety in meeting with members of the Federal Home Loan Bank Board to discuss the board’s long-running battle with Keating over his operation of Irvine-based Lincoln.

Four other senators joined McCain in that meeting, including Sen. Alan Cranston (D-Calif.).

McCain said that he attended the meeting only to ensure that Lincoln was being treated fairly by the regulators and that he never intended to attempt to influence their actions.

McCain said he refused requests by Keating to take specific steps after the meeting and he said their friendship, which dated back to 1981, came to an end.

Lincoln was taken over by regulators in April.

“I freely admit my errors,” McCain said in a statement he read at the news conference.

“What I have not done is abuse my public office and my responsibilities to the people I was elected to serve. John McCain may have made some poor judgments, but ... I have never used my office to aid any individual improperly and when the individual in question suggested that I act in a manner that I felt was improper, I effectively severed our relationship.”

McCain said Keating became “angry” after he broke off their relationship and that he has had only two informal contacts with Keating in Senate hallways in the last 30 months.

McCain said he committed a “serious error” by not immediately reimbursing Keating’s company, American Continental Corp., for flights he and his wife, Cindy, accepted on company airplanes.

“I can honestly tell you I did not do this intentionally,” McCain said.