Supreme Court Declines to Hear Ex-S&L; Chief Spiegel’s Bond Appeal

The U.S. Supreme Court on Monday refused to consider an appeal by former Columbia Savings & Loan Chief Executive Thomas Spiegel seeking to set aside a 1990 regulatory order that requires him to post $21 million before facing a hearing on charges that he looted the thrift.

The decision raises the possibility that Spiegel, once the thrift industry’s highest-paid executive, will file a personal bankruptcy petition. His lawyers, who did not return calls Monday, previously suggested such action if he is forced to abide by the order.

The court action also raises the possibility that Spiegel will have to post a higher amount because federal thrift regulators have sought additional restitution since the original order was filed two years ago.

On Monday, the court without comment let stand a ruling that lets the federal Office of Thrift Supervision order Spiegel to post the restitution bond without a hearing. The U.S. 9th Circuit Court of Appeals had upheld the order last fall.

The case stems from an order issued by OTS Director Timothy Ryan in July, 1990, requiring Spiegel to post the $21 million. That is the amount regulators charge him with squandering from the now-defunct thrift on such things as travel to Europe, a huge cache of guns, corporate jets and other luxury items. The order was issued in part, regulators argued, to prevent Spiegel from selling his assets.

Spiegel had argued that the order violated his right to due process. In addition, he argued that Ryan overstepped the authority granted to him by Congress.

The restitution amount has grown to around $40 million as additional charges have been leveled against Spiegel. An OTS spokesman said the amount Spiegel will have to post and the date by which he will have to comply are still unknown because regulators must first identify all his assets and put a lien on them.

Although Spiegel’s net worth is unknown publicly, his lawyers have suggested that he does not have the amounts regulators want him to post.