BANKING / FINANCE : Downey Savings & Loan Forms PAC Funded by Employee Contributions

At a time when campaign contributions from the savings and loan industry have come under scrutiny, Downey Savings & Loan in Newport Beach has formed a political action committee funded by employee donations.

The committee, run by two Democrats and two Republicans who work at Downey, has collected nearly $5,000 since it was formed about two weeks ago.

“It wasn’t my idea, but I’m all for it,” said Maurice L. McAlister, Downey’s co-founder and president. “I think that with the system we have, many more people should participate by contributing to political campaigns. It would be a lot better if a lot of people contributed small amounts each.”

Contributions to the Downey PAC are strictly voluntary, McAlister emphasized.

“If there’s any pressure tactics going, I don’t know anything about it and I won’t stand for it,” he said.

The S&L; industry, through its trade groups, has traditionally been one of the strongest lobbies in Congress. With Congress debating a bill to rescue the industry from its financial woes, the industry’s lobbying efforts are being watched closely.

In addition, political contributions from employees at American Continental Corp., the parent of Irvine-based Lincoln Savings & Loan, have come under scrutiny. Over the past six years, employees have funneled more than $700,000 to more than three dozen candidates nationwide.

Critics claim the contributions were an effort by Charles H. Keating Jr., the company’s chairman, to win political influence for protective legislation and for interference with regulatory actions against him. The company filed for bankruptcy April 13, and regulators seized the S&L; the following day.