Neil Bush Gets Court Order for Access to Files on S

Neil Bush has obtained a court order to review hundreds of documents held by federal regulators and Silverado Banking, Savings & Loan Assn. to help defend himself against charges of conflict-of-interest violations while serving as a director of the failed thrift.

The broad-ranging subpoena--which includes tax returns, photographs, the minutes of meetings, calendars and tape recordings--underscores the determination of the Bush defense to conduct an intensive search for material to exonerate the President’s son.

The government “doesn’t have all the documents that Silverado had and I presume still has,” said James E. Nesland, a Denver lawyer representing Bush, whose request was approved by an administrative law judge.

The detailed subpoena was disclosed in papers made public Tuesday by the federal Office of Thrift Supervision.

Meanwhile, Rep. Pat Schroeder (D-Colo.) urged fellow Democrats on the House Judiciary Committee to continue to press for the appointment of a special counsel to investigate Bush’s role in the politically explosive Silverado affair. Schroeder has been unable to get a majority of the committee’s 22 Democrats to sign a letter formally requesting Atty. Gen. Dick Thornburgh to investigate the need for a special prosecutor.

Meanwhile, she accused Republican leaders Tuesday of “political obstruction of justice” for threatening to seek a special prosecutor for Democrats involved in the scandal surrounding the collapse of hundreds of savings and loan associations.

“The promises made by certain Republican leaders . . . to bring charges against certain Democrats unless we withdrew our letter is nothing short of political obstruction of justice,” Schroeder said in a letter to fellow Judiciary Committee members who signed her original message.

Schroeder said Republicans are suggesting: “ ‘If you don’t go after our guys, we won’t go after your guys.’ Shame.”

House Minority Whip Newt Gingrich (R-Ga.) fired back at Schroeder, saying she “confuses sound judgment by mature people with obstruction of justice.” “Is she now so hysterical that she is accusing Democratic Speaker Tom Foley (D-Wash.) of obstructing justice?,” said Gingrich. “Is her vendetta against the President so desperate that she is accusing fellow Democrat Ed Feighan of obstructing justice? Why does she find it so hard to accept the mature judgment and calm reason that she is simply wrong.”

Schroeder had 12 signatures on her letter last week, but one of the signers, Feighan (D-Ohio), withdrew his name, and she has been unable to enlist another sponsor.

Neil Bush has been accused by federal regulators of failing to disclose to fellow board members at Silverado that he had business ties with two important Denver real estate developers, Kenneth M. Good and Bill L. Walters. Good and Walters, both major borrowers at Silverado, defaulted on a total of $130 million in loans from the Denver-based thrift. The Office of Thrift Supervision is seeking a cease-and-desist order against Bush to bar him from violations of the conflict-of-interest regulations.

The case will be heard before Judge Daniel J. Davidson, who issued an order Monday giving Bush and his lawyers broad access to government files and the records at Silverado.

The subpoena was designed “to just try to find out if any more information is in Silverado’s files than in OTS’,” said Nesland.

Nesland said he was not bothered by the rejection of his request for some materials on the grounds that his subpoena was too broad.

Direct testimony on the civil charges against Bush will be delivered in writing. Neil Bush will appear in person on Sept. 25 for cross-examination.

The subpoena was issued to the Federal Deposit Insurance Corp., which controls the Silverado records. The thrift was seized by the government in December, 1988, after falling into insolvency because of massive losses on real estate loans. The bankruptcy is expected to cost taxpayers more than $1 billion. Colorado regulators wanted to close the S&L; in late October, 1988. But the final decision rested in the hands of federal regulators who controlled the insurance fund that protects S&L; deposits up to $100,000. According to testimony from regulators, a mysterious phone call from Washington, which no one has admitted making or receiving, ordered a delay in closing the S&L; until after the presidential election.