Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 19, 1991 TAG: 9104190261
SECTION: BUSINESS PAGE: A9 EDITION: METRO
SOURCE: Cox News Service
DATELINE: WASHINGTON LENGTH: Medium
President Bush's son "engaged in unsafe and unsound practices" and "multiple conflicts of interest" as a director of the Silverado Banking, Savings and Loan, according to the Office of Thrift Supervision.
OTS Director Timothy Ryan ordered Bush to "cease and desist from any acts, omissions or practices involving any conflicts of interest, unsafe or unsound practices or breeches of fiduciary duties."
Although Ryan's order did not banish Bush from the thrift industry, it established conditions he must abide by if he becomes affiliated again with a federally insured depository institution:
He must get advice from "competent counsel" on his duties, responsibilities and potential conflicts of interest.
He must abstain from voting on any proposals in which he has a personal interest or from which he may benefit, directly or indirectly.
He must make full disclosure of his interest in any such business proposals and disclose any conflicts of interest annually.
Bush, who has denied any wrongdoing, did not respond immediately to the order. His lawyer, James Nesland of Denver, said he was "not the least bit surprised" by the action. "We disagree with the decision," he said.
The White House, which has declined comment throughout the two-year-old case, had no reaction Thursday. But Barbara Bush told reporters Monday that her son was being "persecuted" by the regulators. "He's done nothing wrong," she said.
Bush, 36, has the right to appeal the ruling to a federal appeals court and ultimately to the Supreme Court. Nesland said such a decision would await the conclusion of other legal proceedings related to Silverado.
The government is suing Bush and other Silverado directors for $200 million. It accuses them of breaching their fiduciary duties, negligence and unjust enrichment and contributing to the demise of Silverado.
The government seized control of Silverado, one of the largest thrifts in Colorado, on Dec. 9, 1988, and later sold it. The takeover could ultimately cost taxpayers $1 billion.
Bush became a Silverado director in 1985, when his father was vice president, and served until August 1988.
During that time, he voted to approve $106 million in loans to business associates and tried to obtain a $900,000 line of credit for one of them.
by CNB