It Was Risky Business

Regarding the June 24 story, “Cranston Calls for Probe of Note Sales by Lincoln’s Parent”:

How does Sen. Alan Cranston (D-Calif.) shave? A man has to look at himself in the mirror to shave properly. I can’t imagine Cranston being able to do that.

He and a few others were eager to support Charles Keating and his American Continental Corp. while accepting political contributions from them. Now that American Continental has filed for bankruptcy court protection, Cranston is grand-standing in support of the high interest rate chasers who bought American Continental debentures through its Lincoln Savings & Loan subsidiary.

By what stretch of the imagination does the remarkable senator propose that Federal Savings and Loan Insurance Corp. funds be used to pay back purchasers of any subordinated debenture? I am quite sure that a prospectus accompanied the offer of the new security. I am also certain that the prospect of receiving a higher rate on the debenture than was available from the insured savings accounts at Lincoln Savings suddenly blurred the vision of the holders of the prospectuses. How far does Cranston think his paternalistic government should go in helping those suffering at the hands of the very organization he was defending just a few months ago?

T. BRUCE GRAHAM

Port Hueneme