3 Groups Urge Bush to Dismiss Thrift Official

Three public interest groups Wednesday called for the resignation of M. Danny Wall, but White House spokesman Marlin Fitzwater said that President Bush had no immediate plans to oust the embattled chairman of the Office of Thrift Supervision.

The National Taxpayers Union, Public Citizen, and Citizens Against Government joined the chorus of groups and individuals seeking Wall’s resignation because of his role in the failure of Lincoln Savings & Loan of Irvine. The three nonprofit organizations sent a letter to Bush urging him to oust Wall.

“Wall may have cost citizens of this country more than any other political appointee in history,” James Davidson, chairman of the National Taxpayers Union, said at a press conference.

Wall, who previously headed the Federal Home Loan Bank Board, is under fire for not acting on a recommendation by regional regulators to seize Lincoln in 1987. The government did not take control of the thrift until last April, and critics contend that the delay greatly increased the eventual cost to taxpayers. The failure could cost taxpayers more than $2 billion.

Asked at a press briefing if the White House planned to fire Wall, Fitzwater replied: “No, there’s been no consideration of Mr. Wall’s tenure. He’s serving on the (OTS) board, and there’s been no change.”

Fitzwater did not elaborate on the statement. Nor did he mention earlier comments by Bush, who indicated in a recent interview that he would ask Wall to resign if it were determined that a lack of aggressive action by regulators contributed to the nationwide thrift crisis.

Wall’s agency, however, said studies showed that it had saved taxpayers between $6 billion and $8 billion last year by selling failed thrifts rather than liquidating them.

“It’s good to know the findings of independent research support our contention that the record number of cases we resolved in 1988 will mean substantial reductions in losses and ultimately savings to the taxpayers,” Wall said in a statement.