European Stars and Stripes (Newspaper) - September 27, 1990, Darmstadt, Hesse                                Thursday september 27, 1990 the stars and stripes a a a Page 5 Denver hearing under Way on Neil Bush s role in a amp a Michael Wise Silverado a former Board chairman and chief executive officer Heads for courtroom in Denver. Denver apr one witness invoked the fifth amendment 14 times and another refused to appear voluntarily As a hearing began tuesday on conflict of interest allegations against Neil Bush the presidents , the Federal courthouse was surrounded by news Media Security officers and protesters. The Only thing missing in the savings and loan Case was the Center of All the attention a Neil Bush. The 35-year-old Bush did not show up for the first Day of what is anticipated to be a four Day proceeding before administrative Law judge Daniel j. Davidson. The Federal office of Thrift supervision is trying to bar Bush from the banking and savings Industry for his alleged actions As a director of Silverado banking savings and loan. Silverado failed in late 1988 at a Cost to taxpayers of $1 billion. At tuesdays hearing Michael Wise Silverado a former Board chairman and chief executive officer invoked his fifth amendment right to refuse to answer questions on the grounds that he could incriminate himself. Meanwhile Florian Barth a former Silverado Board member who refused to testify at Bush a conflict of interest hearing changed his mind and was to testify wednesday officials said. Barth was to have been the third witness at the office of Thrift supervision hearing that opened tuesday but he refused to appear. Federal regulators accused Bush last february of violating his duty As a Silverado director from August 1985 to August 1988. The ots claims Bush May have improperly voted on Loans and lines of credit for developers Kenneth Good and Bill Walters both of whom contributed to Bush a Job exploration Oil company. The two defaulted on Silverado Loans totalling More than $130 million. Last week Bush and other former Silverado directors also were sued for $200 million by the Federal Deposit insurance corp. Bush could have avoided this weeks hearing by agreeing not to dispute the charges As others amp a officials have done. By fighting the government he has taken the Case into a rare Public forum. Russell Murray former Silverado executive vice president was the first scheduled witness to actually testify tuesday. He reviewed a 1986 proposal for a $900,000 line of credit for Good International inc., which wanted to search for Oil in Argentina with Bush a Job As a partner. Murray said he did not recall anyone questioning the no collateral line of credit even though Good and Bush had a business relationship. He indicated the line of credit was for show Only to impress Argentine officials. Later j. Donald Wright chairman of the Board of Lakewood Bank and Trust of Dallas was called by the government As an expert witness to give his opinion of Bush a role in approving $100 million in Loans to Walters. Judge denies defense bid to reduce Keating s bail los Angeles apr an appeals court refused tuesday to reduce the $5 million bail for Charles h. Keating the savings and loan executive accused of fraud in Selling american Continental corp. Junk Bonds. The 2nd District court of appeals said in a one paragraph ruling that it considered an Appeal filed monday by Keatings lawyers and had examined transcripts of bail proceedings before Superior court judge Gary Klausner. The court apparently rejected arguments by Keating that he is being made a Scapegoat in a criminal fraud Case involving sales of the now worthless Bonds through branches of Irvine  Lincoln savings amp loan. Lincoln an american Continental subsidiary has been seized by Federal regulators. District attorney Ira Reiner said he was pleased the court had upheld the $5 million bail. He said he expects further efforts by Keatings attorneys to  reduction of the bail. Reiner acknowledged that $5 million is a High Price for Freedom. A it is an exceptionally High bail and or. Keating is an exceptional defendant a Reiner said. A the principal Factor involved is risk of flight. You can to consider or. Keating without thinking of Robert  Vesco a fugitive financier fled the United states while being investigated by authorities. Keating who has been held at the downtown menus Central jail for a week contends he can to adequately defend himself if he remains in custody. Stephen c. Neal Keatings main attorney said that he would pursue every Avenue to get Keating out of jail. The next Appeal would be to the California supreme court and after that to a Federal court. Keating and three co defendants surrendered to face a 42-count state grand jury indictment on sept. 18. Klausner set Keatings bail at $5 million and held the other defendants on $1 million bail. After a hearing last week the judge reduced the co defendants bail to $100,000 or $200,000. Klausner refused to lower Keatings bail saying the possibility of 10 years in prison made him a flight risk. Keatings attorneys argued that he had not fled any of the numerous Legal problems that have Arisen _ since Federal regulators seized Lincoln and american Continental went to bankruptcy court. They also said he is about $5 million in debt and with the help of his children could Only Post bail of $500,000. The co defendants officers of american Continental or Lincoln posted bail last week and Are free. Keating and the others Are charged with ordering employees to steer Lincoln depositors away from insured certificates of Deposit to the Bonds. Keatin judge gives f to Texas school financing plan Austin apr despite efforts at Reform the Texas school finance system remains unconstitutional because it benefits wealthy students Over poor ones a judge ruled tuesday. State District judge Scott Mceown gave officials until sept. 1,1991, to again Reform the $ 14-billion system. If a plan Isnit devised to his liking by then Mccown said he would consider stopping the spending of state and local tax Money on schools or order How the Money can be spent. Gov. Bill Clements said an Appeal would be filed. A i done to agree with his judgment at All. He a a Young judge. Perhaps the supreme court in its review will reconsider that opinion a Clements said. Texas schools Are funded by state and Federal Aid and local property taxes. Texas is one of a dozen states where courts have overturned school finance systems in recent years. Others include Kentucky new Jersey Kansas Wisconsin California Connecticut Washington West Virginia Wyoming Arkansas and Montana. Poor school districts challenged the plan which they say discriminated in favor of wealthy school districts. Attorney Rick Gray who represented the districts that brought suit hailed the ruling. State education commissioner . Kirby complained the 52-Page opinion did no to give Texas enough direction on How to Reform the system. Board votes to tear Down quake damaged freeway 4oyearsagotoday. A w. # sept 97 1qs0 a the. First ii s or Sancts of Irne Vav in the stars and stripes san Francisco a it looks like the end of the Road for the earthquake damaged Embarcadero freeway. The freeway is a double Decker Span likened to the Berlin Wall for the Way it separates san Francisco a downtown and waterfront. The Board of supervisors voted monday to tear Down the mile Long stretch of the Road that a been closed since the 7.1-magnitude quake did widespread damage m october 1989. The freeways Concrete support columns were damaged. At the time of the quake the Embarcadero carried 60,000 cars a Day along the waterfront to Chinatown the North Beach restaurant District and Fisherman a wharf the City a prime tourist attraction. Technically the boards 6-5 vote was strictly advisory but Federal and state officials have made it Clear they will go along with the City a decision. No formal demolition request has been filed by the City. Mayor Art Agnos said he is waiting while be tries to secure funds for an underground replacement Highway. The California department of transportation has said it would Cost $54.6 million to repair the freeway. State transportation spokesman Breg Bayol said tuesday that tearing Down the 30-year-old freeway would take at least six months. Sept. 27,1950 a the first . Prisoners of War were liberated in Yong Dong Korea by tankers of the 24th inf div who came through on their Way to Taejon. The tankers shot off the jail door and greeted the three pos with a rations gum and whiskey.30 years ago today. Sept. 27,1960 a Premier Fidel Castro of Cuba told the United nations his delegation had been subjected to a degrading and humiliating treatment in new York evicted from its hotel and subjected to extortion.20 years ago today. Sept. 27,1970 a fires raged on the North and South edges of los Angeles destroying More than 50,000 acres and 150 Homes in the affluent Malibu area and populous san Fernando valley.10 years ago today. Sept. 27,1980 a German television stations announced they would carry the world boxing Council heavyweight bout Between Champion Larry Holmes and Muhammad Ali three time former Champion