Nation’s Governors Swap Charges Over S&L; Crisis

The nation’s governors today ended their summer conference hurling partisan charges of blame for the savings-and-loan crisis.

A Republican ad in the Mobile Register blamed congressional Democrats for the S&L; problems and provoked angry response from Ohio Gov. Richard F. Celeste, chairman of the Democratic governors.

He called the ad “deceitful” and “the most outrageous distortion of the truth.” He blamed Republicans for upsetting the normal spirit of bipartisanship at the governors’ conference and said the Bush Administration has failed to lead on the S&L; crisis.

“I’m surprised this is in the Mobile paper while the National Governors’ Assn. is meeting,” Celeste said.

The ad pictured 12 congressional Democrats, including resigned House Speaker Jim Wright. It was signed by the Republican National Committee in Washington.

It said, “You won’t see these Democratic ‘leaders’ around Mobile,” and “They’re the guys who let the S&L; problem explode into a $325-billion national crisis.”

Democratic National Chairman Ron Brown said the ads were a sign of “absolute panic” by Republicans over the S&L; debacle

A Republican governor, John R. McKernen of Maine, said that Democrats have been trying to use the S&L; issue and that “Republicans want to make sure people realize there’s enough blame to go around.”

The ad was an escalation in the growing partisan rancor over the S&L; crisis as the fall elections approach. Another Republican ad ran a day earlier.