P.M. BRIEFING : House Panel Subpoenas Lincoln Savings’ Keating, Key Officials

The House Banking Committee voted today to subpoena Phoenix millionaire Charles H. Keating Jr. to testify about his now-insolvent savings institution, Los Angeles-based Lincoln Savings & Loan, which is expected to require the government’s largest-ever thrift bailout of at least $2 billion.

Also subpoenaed were L. William Seidman, chairman of the Federal Deposit Insurance Corp.; M. Danny Wall, director of the Office of Thrift Supervision; William Crawford, California savings and loan commissioner, and other officials.

The panel, which plans four hearings beginning next week, voted 41 to 0 to subpoena Keating, chairman of the Phoenix-based American Continental Corp., parent company of Lincoln.

Rep. Henry B. Gonzalez (D-Tex.), chairman of the banking committee, said in an interview that Keating’s attorneys have been in contact with committee aides but have not indicated whether their client would cooperate.