Appeals Court Won’t Reduce Keating’s Bail

A state appellate court refused Tuesday to lift or trim the $5-million bail set last week on Charles H. Keating Jr., ensuring that he will remain in jail longer while awaiting trial on criminal state securities fraud charges.

A three-judge panel of the state Court of Appeal in Los Angeles unanimously denied Keating’s petition to be released from Los Angeles County Jail without bail or on a substantially reduced bond.

Lawyers for Keating, former chairman of American Continental Corp., the former parent of failed Lincoln Savings & Loan, are expected to appeal to the state Supreme Court as soon as possible, possibly today.

Keating has been in jail since Sept. 18 on charges stemming from the sale of more than $200 million in American Continental bonds, mostly through the 29 Southern California branches of Irvine-based Lincoln.

The bonds were sold primarily to elderly and unsophisticated investors, many of whom have said they thought the bonds were insured and safe. The bonds became worthless when the company filed for bankruptcy protection in April, 1989. Federal S&L; regulators seized Lincoln the next day.

Regulators contend that Lincoln is one of the nation’s biggest thrift disasters and will eventually cost U.S. taxpayers more than $2 billion.