P.M. BRIEFING : Cranston Seeks OK for Lincoln Investors to Sue Government
Sen. Alan Cranston (D-Calif.) said today that he will introduce legislation to allow investors to sue the government if they fail in other efforts to recover losses from worthless junk bonds sold at Lincoln Savings & Loan Assn.
Cranston, facing his most serious political crisis because of his involvement with Lincoln, continued an attack that began last week, blaming a former banking regulator for investors’ losses.
Cranston said in Los Angeles that his legislation, to be introduced this week, would allow about 23,000 California bond holders to file suit against the U.S. government if they are unsuccessful in suits against Lincoln, parent American Continental Corp. and company chief Charles H. Keating Jr.
The government is usually immune from such suits.
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