BANKING & FINANCE - Jan. 10, 1992

Possible Keating Lawyer Conflict Raised: Federal prosecutors say the lawyer for Charles H. Keating Jr. should be disqualified from defending the Arizona developer on federal bank fraud and racketeering charges because the lawyer has previously represented two co-defendants in civil matters. U.S. District Judge Mariana R. Pfaelzer will hear arguments Monday on whether the potential conflict is serious enough to bar Stephen C. Neal from representing Keating in the criminal trial. Keating is charged with racketeering, conspiracy and bank fraud in connection with the collapse of Lincoln Savings & Loan and its parent company.