Bane Defends Record on S & Ls; Task Force to Review Laws

Assemblyman Tom Bane (D-Tarzana) on Tuesday defended his record as a champion of savings and loan industry legislation, declaring that “every bill of mine was for the benefit of the public.”

Attention has been focused recently on Bane’s efforts on behalf of savings and loans, especially his ability to tap thrift institutions for campaign contributions while carrying measures on behalf of the industry.

Also questioned was a bill he sponsored that revoked some state anti-fraud provisions.

In a move that could affect that legislation, it was announced that a task force is being established to look into ways for the Legislature to strengthen regulation of the savings and loan industry, which has suffered an increasing number of collapses nationwide in the past six years.

Among other things, the Assembly task force is expected to review a 110-page law designed to streamline regulation of the industry. Bane pushed the measure through the Legislature in 1983.

Repeal of Statutes

Assemblyman Patrick Johnston (D-Stockton), chairman of the Assembly Finance and Insurance Committee, said the task force will look into the law’s repeal of certain anti-fraud statutes.

Bane failed to tell colleagues about the repeal of the statutes, according to a public affairs program scheduled for broadcast tonight on a San Francisco public television station.

Johnston indicated that state authorities should have the enforcement powers that were removed by Bane. Johnston cautioned that because both the state and federal governments charter savings and loans, it is important to give the state savings and loan commissioner “the authority to move against institutions and their officers” when they act improperly.

Shirley Thayer, legislative coordinator for the state Department of Savings and Loans, described Bane as “extremely cooperative with the department in carrying legislation which expanded the commissioner’s power to regulate the savings and loan industry.”

She maintained that the anti-fraud statutes were deleted by Bane because they duplicated federal statutes.

Thayer acknowledged, however, that some state anti-fraud provisions Bane removed, effective in 1984, including one that prohibited officers of savings and loans from pocketing huge loans fees or kickbacks, have not been put back into the law. She said similar prohibitions are in federal law.

Received Contributions

Last week, it was reported that soon after Bane received contributions from two financial institutions early in 1988, he introduced a bill that opponents said would have aided the two firms in a pending multimillion-dollar lawsuit. He denied anything improper.

On Tuesday, Bane scoffed at questions about his legislation, maintaining that the goal of his bills has been “to try to strengthen and secure the deposits of the public.”

In a brief interview, Bane also pointed to the growing number of savings and loans that have collapsed, saying, “If there’s anything to indicate I was on the right track, it’s what’s happening today.”

Johnston said he has been asked to head the task force on savings and loans. He added that it is likely that Bane, regarded as the Legislature’s expert in the field, will be a member.

Bane, 75, is chairman of the powerful Assembly Rules Committee. In 1987-88, he raised $1.2 million in campaign contributions, including $102,480 from the savings and loan industry, according to his campaign statements.

Times staff writer Alan C. Miller, in Los Angeles, contributed to this story.