Keating Aid and Acts by Senators Reported Linked

A special counsel’s report establishes crucial links between the timing of contributions by Charles H. Keating Jr. to three senators and specific actions that the lawmakers took to help the former savings and loan executive, congressional sources said Monday.

The links were instrumental in the counsel’s recommendation that the Senate Ethics Committee investigation proceed against Democratic Sens. Alan Cranston of California, Dennis DeConcini of Arizona and Donald W. Riegle Jr. of Michigan, the sources said.

However, special counsel Robert S. Bennett recommended that the committee dismiss Sens. John McCain (R-Ariz.) and John Glenn (D-Ohio) from the inquiry, according to the sources.

The five senators received a total of $1.3 million from Keating and his associates for their campaigns and causes and intervened with U.S. banking regulators on behalf of the former head of Lincoln Savings & Loan of Irvine, Calif.

The federal government seized Keating’s thrift in April, 1989; it could cost taxpayers more than $2 billion to cover the losses.

The senators have said that they intervened with regulators because Keating made a persuasive case that his thrift was being treated unfairly. All have denied that their intervention was driven by the donations.