European Stars and Stripes (Newspaper) - July 12, 1990, Darmstadt, Hesse                                Thursday july 12, 1990 the stars and stripes Page 5 Washington apr Federal regulators Are preparing a $200 million lawsuit alleging negligence against president Bush a son Neil and other former directors of a failed Thrift Abc news reported tuesday but a government spokesman said that a final decision on the action has hot been made. A suit against former directors of Silverado banking savings and loan association of Denver has been authorized by William Seidman chairman of the Federal Deposit insurance corp.,1 according to sources cited by Abc. But Odic spokesman Alan Whitney said that action is still under consideration. He declined to comment on the $200 million figure Abc reported or to provide any other details. A a it a not uncommon for the Odic to file suits against directors in cases of savings and loan failure Whitney said. In the most highly publicized Thrift collapse the Odic last year filed a $1.3 billion suit against Charles Keating jr., and other directors of the failed Lincoln savings and loan of Irvine Calif. Silverado a december 1988 collapse will Cost taxpayers an estimated $1 billion. Neil Bush has been ordered by regulators to answer allegations of conflict of interest in his role As a director of Silverado which loaned millions of dollars to a Bush business partner who never repaid the Money. Bush 34, has denied any wrongdoing. He told the associated press in an interview tuesday that he and the Thrift were victimized a by a system that was doomed to fail has failed and will continue to  he said the investigation by regulators is a self serving. The regulators Are Politi Cally  several former Silverado executives have settled charges with regulators and have effectively been barred from future positions in the Thrift and banking Industry. -4 a. ,. A a a a Bush a attorney James Mcsland said he was unaware of a pending suit against his client if such a suit is filed no stand added Quot i guess Well defend  the office of Thrift supervision has alleged that Bush who served on the Board of Silverado from August 1985 to August 1988, voted to approve Loans or business deals totalling More than $45 million to a business partner Bill l. Walters. An administrative Law judge is Schechl used to hear the Bush Case sept. 25 in Denver before making a recommendation to ots director Timothy Ryan. In its report tuesday Abc said the suit will charge that the negligence of Silverado a directors partly caused the losses. The network quoted an unnamed source As saying that the negligence was a particularly  Abc said the suit will contend the Silverado directors acted irresponsibly in approving dozens of questionable Loans. The evidence for the suit Abc said includes a memo in which a top Silverado executive acknowledged that the Board was a a rubber stamp for the Thrift s officers when it approved Loans. Bush and other former directors and officers of Silverado testified in hearings in May and june before the House banking committee. The testimony disclosed that Silverado loaned Walters a a partner with Bush in his Oil exploration business a millions which were never re paid. Northrop plans 1, at stealth Plant los Angeles up a defense giant Northrop corp. Said tuesday it will Lay off about 1,400 workers at one of the Southern California plants building the b-2 stealth bomber. The cuts at Northrop a Pico Rivera facility Are part of the company a plans to trim 3,000 jobs by the end of the year from its work Force of41,000, spokesman Tony can Tafi said. The reductions at the parts fabrication and production Plant in Pico Rivera will take place on an a across the boards basis starting this month through september Cantafio said. That Plant employs about 10,500 workers. Cantafio said Northrop has already notified workers at its aircraft division in Hawthorne Calif., that 1,350 jobs will be Cut at that Plant by the end of the year through layoffs contract terminations voluntary leaves and retirements. Northrop is also transferring production of the Forward fuselage Section of the b-2 from Pico Rivera to its Plant in palmate Calif., Cantafio said. As a result employment at Palmdale located about 60 Miles North of los Angeles will increase from 2,200 to 3,000 by the end of the year. The radar evading b-2, made largely with composite materials a fabrics bonded in a plastic resin a generates about half of Northrop a revenues which totalled $5.25 billion last year. Defense Secretary Dick Sicney reduced future production of the aircraft earlier this year from 132 to 75, giving the program a total Cost of $62 billion. The air Force has already spent More than $26 billion on the b-2, which flew for the first time a year ago. It is due to be tested soon for its ability  radar detection. In the stars and stripes 40 years ago today. July 12, 1950 a maj. Gen. Lewis b. Hershey director of selective service said it would take about 60 Days to Start delivering men to the military under the new emergency draft system. 30 years ago today. July 12, i960 a Cuba asked the . Security Council to consider the worsening dispute Between Cuba and the United states. 20 years ago today. July 12, 1970 a Apollo 14 commander Alan b. Shepard said he was concerned about the potential negative Impact of budget reductions on space program safely. He said workers fearing layoffs might say to themselves a Why should 1 worry about that Little screw 1 just dropped Down a crack Quot 10 years ago today. July 12, 1980 a the death toll from americans heat wave reached 300, with victims reported from Texas to Georgia and North to Illinois. Eulogi zing Snyder actor Martin Sheen Speaks behind the casket of homeless advocate Mitch Snyder at Snyder a funeral outside a homeless shelter in Washington tuesday. Sheen who portrayed Snyder in a to movie eulogized Snyder As a a giant uncompromising and compassionate voice for social  seated from left Are Washington mayor Marion Barry the Rev. George Stallings the Rev. Jesse Jackson an unidentified person and Carol Fennelly Snyder a close companion. Nasa official denies charge that shuttle test was rigged Washington apr a top Nasa official on tuesday denied an assertion by sen. Albert Gore or. That critical pumps were installed on two space shuttles even though the parts had failed a leakage test. Gore a Tennessee Democrat said two umbilical which pump super cold Hydrogen rocket fuel into the spacecraft were among seven plumbing fixtures that failed initial tests but were tested a second time using a different method and passed. Gore said the umbilical had leaked when tested with liquid nitrogen and connected to a simulated spacecraft part. But nasal a spaceflight director William Lenoir said that the pumps had not failed and that the second round of tests was Normal. He said the umbilical were first tested against what is called a slave unit which simulates where the umbilical would be attached to the space shuttle orbiter. A the slave unit is not flight hardware therefore it is More Likely to be the source of a leak than is the flight hardware a said Lenoir. He denied that the test was redesigned in order to assure that the umbilical would pass a leakage test. When leaks were detected in the first test Lenoir said the slave unit was removed and a Blank plate was substituted. This was done he said because it was assumed the leak was from the slave unit and not from the umbilical. In tests using the Blank plate the Nasa official said the units passed. Lenoir acknowledged that using liquid nitrogen which is chilled to minus 250 degrees is less rigorous than using liquid Hydrogen which is chilled to minus 423 degrees fahrenheit. He also said that the liquid nitrogen is pumped through the umbilical during the test at a slower rate than liquid Hydrogen flows through the units during an actual space flight. A we suspect that the test is not adequate or stressful enough Quot the Nasa official said. The precise location of the Hydrogen leak that has grounded the nations space shuttle Heel has eluded Nasa engineers although the space Agency said monday that a weekend test on the shuttle Atlantis confirmed that there is a problem in the design or Assembly of the liquid Hydrogen plumbing system. Lenoir said earlier that the leak was similar to the one detected earlier on Columbia. A it looks like its not out of line from what we saw on the pad a Lenoir told reporters monday. He called the finding a Good