Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 31, 1990 TAG: 9007310049
SECTION: NATIONAL/INTERNATIONAL PAGE: A-2 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
In a document released Monday by the Office of Thrift Supervision, Bush and the regulators said they agreed on 110 points ranging from Bush's date of birth (Jan. 22, 1955) to complex loans and business transactions. The younger Bush was a director of Silverado Banking, Savings and Loan Association of Denver, which failed in December 1988 at a cost to taxpayers of $1 billion.
The 34-page document, called a joint stipulation of uncontested facts, doesn't contain any information that hasn't already been made public, according to the OTS and Bush's attorney, James Nesland.
However, it brings together interesting details about Bush's oil company and its relationship with Silverado borrowers Kenneth M. Good and Bill L. Walters, as well as votes that Bush made as a director approving loans to the two men.
The regulators have accused Bush of conflict of interest in failing to disclose his business relationships with Good and Walters to the Silverado board.
The joint stipulation, requested in late May by Administrative Law Judge Daniel J. Davidson, is part of the proceeding in the Bush case. Bush has been ordered to appear at a public hearing Sept. 25 in Denver before Davidson, who will then make a recommendation to OTS Director Timothy Ryan.
In addition to the OTS case, the Federal Deposit Insurance Corp. is considering filing a negligence lawsuit against Bush and other Silverado directors.
The document released Monday traces the investments made by Good and Walters in Bush's company, JNB Exploration Co., which drilled a succession of dry holes in Wyoming and failed to become profitable.
For an investment of only $100, Bush acquired 23.4 percent of the business in January 1983. His active partners, geologists James B. Judd and Evans G. Nash Jr., held 23.4 percent and 15.6 percent, respectively, for investments of $100 and $66. (The name JNB came from the initials of Judd, Nash and Bush.)
The "silent" partners were Walters, who invested $300,000 for a 12.5 percent stake, and Good, who made an initial investment of $10,000 for 25 percent.
Good also guaranteed lines of credit for hundreds of thousands of dollars to JNB from Cherry Creek National Bank, which was controlled by Walters.
In addition, Good lent Bush $100,000 so that Good could trade in a commodities pool on Bush's behalf. Bush was allowed to keep any profits that might be earned but was not required to repay the loan if the pool wasn't profitable. The venture was unprofitable and Bush never repaid the loan.
by CNB