Lincoln Hearing Postponed
Federal thrift regulators, acting at the behest of a former judge handling settlement talks in the massive Lincoln Savings & Loan litigation, postponed for a week the enforcement action against former Lincoln owner Charles H. Keating and six others.
The hearing is now scheduled for July 1.
The Office of Thrift Supervision is seeking $130.5 million in restitution for Lincoln losses on four deals engineered by the Keating group. It also seeks to ban them from the industry for their role in the Irvine thrift’s 1989 failure. The failure is expected to cost taxpayers $2.6 billion, the biggest single bailout tab to date.
The OTS said the settlement talks before former U.S. District Judge J. Lawrence Irving in San Diego might resolve the agency’s biggest concern--an industry ban on the Keating group.
Irving requested the postponement this week. He wanted to see if the insurance carriers for the directors and officers of Lincoln and its parent company could come up with a settlement package. The carriers saw the OTS hearing as a stumbling block to any settlement offers, one source in the litigation said.
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