The Nation : Bank Regulators Can’t Offer Immunity

Federal bank regulators have no authority to offer immunity from prosecution to officials of ailing savings and loans, and have been told so “in no uncertain terms,” Atty. Gen. Dick Thornburgh said. Thornburgh spoke to reporters after a luncheon speech in Denver. He was commenting on Los Angeles reports that top officials of the failed San Marino Savings & Loan Corp. were told that they could avoid prosecution by helping Federal Home Loan Bank Board regulators recover some of the money lost when the thrift institution collapsed. Thornburgh said that the offer was a misunderstanding made without consultation with the Justice Department and that bank board regulators have been warned not to do it again.