Ethics Counsel Would Probe Cranston, Riegle and DeConcini

The special counsel to the Senate Ethics Committee has recommended that no action be taken against Sens. John Glenn (D-Ohio) and John McCain (R-Ariz.) in an S&L; case, a congressional source disclosed Friday night.

The counsel recommended that the committee proceed with an investigation of the three other senators who intervened with regulators on behalf of Arizona savings and loan operator Charles H. Keating Jr., the source said.

The other senators from the “Keating Five” group are Donald W. Riegle Jr. of Michigan, Dennis DeConcini of Arizona and Alan Cranston of California, all Democrats.

The recommendation by special counsel Robert S. Bennett, a Washington lawyer, was made Sept. 10, but the committee has been unable to decide whether to accept it, the source said.

The source discussed what he knew about Bennett’s recommendation on condition that his congressional affiliation not be disclosed. He said he did not know the basis for the recommendation.

The committee’s staff director, Wilson Abney, refused to discuss the matter Friday night.

Glenn’s press aide, Rebecca Bell, and McCain’s press aide, Scott K. Celley, said their senators had not been told of any recommendation to the committee.

Keating controlled Lincoln Savings & Loan of Irvine, Calif., whose failure has been estimated to cost taxpayers $2 billion. His family is from Ohio; he had a hotel project in Michigan and his principal corporation operated in Arizona.

He contributed $1.3 million to the campaigns and causes of the five senators, and the committee is trying to determine whether their intercession with regulators trying to close Lincoln was improper.

Keating, charged with fraud in the sale of more than $200 million in risky junk bonds, is in jail in Los Angeles, unable to make $5-million bail.