Obama's New Ad Attacks McCain with 'Keating 5' Ethics Scandal

Obama's campaign launched a new web ad and informational materials on Sunday which present the scandal in light of today's economic crisis, arguing that McCain's attitudes about regulation and the financial markets then are as important as they are now.

The campaign says in a website called keatingeconomics.com that the earlier scandal is "eerily similar to today's credit crisis."

"And in both cases, John McCain's judgment and values have placed him on the wrong side of history," the campaign states on the site.

The scandal involved Arizona Sen. McCain and four other senators. They were collectively known as the "Keating 5" during a bipartisan congressional investigation into their involvement with Savings & Loan financier Charles Keating who was eventually convicted of securities fraud.

A video clip at the start of an Obama ad for the short documentary shows then Sen. Howell Heflin at the opening of proceedings investigating the ethical conduct.

"Many of our fellow citizens apparently believe that your services were bought by Charles Keating," Heflin is shown saying in video from the proceedings.

The Senate Ethics Committee concluded by ascribing a lesser role to McCain in helping Keating but faulted his "poor judgment" in speaking to regulators on behalf of Keating.

Keating, who was the chairman of Lincoln Savings and Loan had contributed more than $100,000 to McCain's senate campaigns at the time. He was also a friend of McCain.

The other four senators were Alan Cranston of California, Donald Riegle of Michigan, John Glenn of Ohio and both Dennis DeConcini of Arizona.

McCain had participated in two meetings with banking regulators on behalf of Keating. Regulators were seeking information about questionable lending practices by Lincoln. McCain called participation in the meetings "the worst mistake of my life."

Ultimately, Lincoln collapsed, costing taxpayers an estimated $2.6 billion. Keating was released after four years before his sentence was overturned on a technicality.

b>The following is a trailer for the Obama campaign documentary.