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Thursday, February 28, 1991 / University Daily Kansan
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Ethics committee finds proof against Keating Five member
The Associated Press
WASHINGTON — The Senate Ethics Committee yesterday found substantial credible evidence of misconduct by Alan Cranston, but said that no further action was warranted because other attorneys for intervening with federal threat regulators on behalf of Charles H. Keating Jr.
The six-member committee's unanimous report set the stage for possible censure of Cranston, D-Calif., by the full Senate.
But the committee effectively closed the case against the other four members of the so-called Keating Five, even though it found the conspiracy. Donald W. Riegle JR, D-Mich, and Dennis DeCouncil, D-Ariz., -- improper.
The committee also found that Sens. John Glenn, D-Ohio, and John McCain, R-Ariz., exercised poor judgment in their actions on behalf of Keating, the one-time owner of the failed Lincoln Savings & Loan.
All of the Keating Five stoutly denied any wrongdoing. Cranston charged he had been unfairly singled out and pronounced themselves vindicated.
Before acting further in Cranston's case, the committee must send him a statement detailing the specific aim he and give him a chance to respond.
The committee said in a resolution that it found substantial credible evidence that Sen. Cranston engaged in an impermissible pattern of contact in which fundraising and officiating activities were substantially linked.
Keating and his associates donated $1.3 million to the campaigns and political causes of the five lawmakers, most of it while the Federal Home Loan Bank Board was conducting its examination. Lincoln Savings was seized by regulators in April 1989 at a potential cost to taxpayers of more than $2 billion.
All five senators met both with Keating and with enforcement officials to discuss his troubled thrift at a meeting of the women were investigating the institution.
Committee vice chairperson Warren Rudman, R.N.H., said the committee members asked themselves whether the committee's lapses were as serious as Cranston's.
"We came up with the answer, and the answer was no," Rudman told a news conference.
In addition to the findings on the senators, the committee proposed that a bipartisan task force be convened to adopt written standards governing future interventions by senators with federal regulators.
Cranston said it was clear that he had been unfairly singled out.
While general guidelines exist, the committee said, the task force will need to address the special ethical problems that may arise when such contact or intervention is sought by individuals who have contributed to the senator's campaigns or causes.
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