Federal regulators say in a legal brief that President Bush’s son Neil should demonstrate that he understands conflicts of interest before being allowed to accept another position with a savings institution.
Neil Bush’s failure to fully disclose his business ties when he was a director of failed Silverado Banking, Savings & Loan Assn. of Denver “is evidence of personal dishonesty,” the Office of Thrift Supervision said.
The four-page OTS brief agreed with most of the restrictions that Administrative Law Judge Daniel J. Davidson recommended last month for Bush, 35. But the brief urged slightly stricter conditions.
Davidson, who found that Bush exposed Silverado to “abnormal risk,” could have recommended that he be barred permanently from the banking and savings industries.
Instead, Davidson proposed to OTS Director Timothy Ryan that Bush be required to meet certain conditions if he again becomes a director or officer of a savings and loan or bank. For example, Davidson said, Bush should be required to get advice from a lawyer on potential conflicts of interest if he takes such a position.
But the OTS said Bush should not be allowed to accept a position unless he has demonstrated to federal regulators that he can recognize the existence of actual and potential conflicts of interest. Bush also must show that he knows how to respond appropriately to such conflicts, the regulators said.
They said Bush could demonstrate such an understanding by his conduct or by completing relevant “formal education.”