S&L depositors tell of
losses in Keating trial
NATIONAL
bond
LOS AM.LLKS \i*) r hi- fln.il pruse
cution witness against (diaries Keating |r
was a replay of (he first an elderlv l.m
coin Savings customer w ho related
meekly I’hursdav how a sale" invest
ment turned out to lie a worthless pink
In .1 voice thnl quavered at times, 77-year-old Bertha Kettig
told jurors she .irid her husband wont to a I.hk oln hr.im h to
renew a $d(),000 certificate of deposit
Instead. the toller sent her to an office next door where .1
man had an investment to offer with a higher interest r.ite.
It) percent txiruls from-"Lincoln’s parent company, heat
1 tig’s American Continental Corp in I’hoenix. Ari/
She couldn’t rememher if he mentioned whether the bonds
were insured He concentrated instead on showing her a map
of A(.( s development projet ts in Arizona and an impressive
brochure about Keating’s sumptuous I’hoenu cm Holel. Her
tha Kettig said
"It sounded very interesting and it sounded safe." she said,
so she doubled the amount she had thought she might invest,
to $ 10,000.
She and her husband riserved one hall month interest pav
merit, S.til .25. ladore learning that American (continental had
.collapsed into bankruptcy and Lincoln had been'seized in
the costliest savings ami loan failure in history
Bertha Kettig bough! the bond on Feb It), IUH'l four
days before Lincoln’s president shut down the bond sale's
,mu iwo months Delore regulators stmt down I.ins oln
Regulators later said rash investments and dubious deals,
funded with money Irom Lincoln depositors and American
Continental bondholders, rost taxpayers t> billion Thou
sands of small investors lost M) million on (Kinds
During the trial, proser utors have tried to prove the Kelltgs
and 1 (i other Lincoln investors lost money because Keating
never adequately revealed his company s shaky financial po
sition
()n I hursd.iv . the delense countered that the government's
two-month fraud prosecution hasn't shown that Keating
knew about, encouraged or aided in any dei options of people
like Bertha Kettlg
Her testimony came two months alter Leon Donat). HO, look
the stand to testily how he and Ills wife lost $101,(XX) under
similar circumstances
After that, prosecutors called a parade of bond buyers,
bond sellers, banking regulators, 1 S Sen John McCain, K
Ariz , and two top Lincoln managers The managers pleaded
guilty in hopes of receiving light sentences
Cross examining prosecution witnesses, defense attorney
Stephen ( Neal tried to build a wall tmlwoen Keating and
the bonds Hi’ drew a portrait of a fsimi program designed by
top lawyers and accountants
Those professionals, lie said, ensured that the good as well
as the bad side id Keating's companies were described In gov
ernment filings and in information desi tilling the risks
Discords flare in Mideast parley
M A i'K ID, S j).»i ii
(Al'J Ar.it) d.-li'
Kdtrs Npurni'd .in
'invitation I'hurs
d.is trnm Israeli I’rtme Minister
Yil/.hak Shamir lu go !o Israel
to negotiate (1 ram.i11/Ing ,i
growing dispute over where the
Mideast peal e ( OnflTCIH i* Is
heading
In thtnr lirst exchanges on tlui
flour of the liLstorii conferent*•.
\r,it> .irid Israeli liM.irrs traded
ret rimlnalions and clung to fa
rnili.ir positions l'hc Arabs dc
m.md.'il all thi' land they lost In
Itic war Israel demanded
recognition before it would
even consider yielding torrlto
ry
Although the day was devot
ed to loruial speeches, the at
mosphere was inure confronta
blond I tllan It! Wednesday's
opening session Shamir a a I led
it a garden o! thorns "
Idle Arabs argued that peace
was londlllonal on Israeli vs ill
ingness to give up the i aptured
territories l-.yerv inch,'' insist
ed Syria's foreign minister, l a
rouk al Sharaa
The issue is not territory hut
our existent e. Shamir said
We appeal to you to renounce
the ith.; 1 (hols war) against Is
rael
Hu I the speet hes also i arfled
elements o! till- ( oni iliatory
language I ho vsurld vie. hoping
in hear from this unpret edent
eil gathering of Israelis, Pales
limans Jordanians, Syrians
l.ehanese ami1 \gv [itians
Blessed are the peat emiik
eis. said Jordanian I'oroign
Minister humel Alui Jaber
We ire willing to live side
by side on tin' land. sald
Haidar Abdul Shall, represent
lug tile Palestinians Shanur lw>
gan Ills speet it with a simple
Shalom
Mt-hough the Arab and Israeli
delegation tie.ids did not a|»
plauii eat h other's speet lies,
Thursday s session was a mile
slone It marked the first lime
Palestinians and Israelis have
addressed e.ii h other m a lor
mat negoliating format
But Vv tide tile I onlerelii i’ It
■ elf kept to the iorm.it s. r ipted
liy its .in hole. t. Set retarv ol
Slate lames \ Baker III, .pies
(tons anise over how it will de
yelop when file ; eremonies end
and the real t.K e to l.u e bar
gaining begun.
In iriv iting the Aral). to start
negoiiulion.s in Israel and rotate
tlit'iu tii tilt- Aral) .stall"., Shamir
was 111 filiJi;! challenging them
hi jit.'vi' they reingm/e Isiai'l
rlii*r<’ is no better was to
make peace than to talk in each
otlii'r s Innni' Av oulltig s'*1 l>
talks is a denial of thi‘ purpose
ot thii negotiations," hr said
I'lir Arabs vvanl to talk on
neutral ground, at least until Is
raid proves willing to consider
llii'ir demand lor territorial eon
lessions, 1‘alestiniali rights and
an end to building Jewish set
tlmrients 111 the (M i upled tern
lories
" I he momentunl in Madrid
is good, the spirit in Madrid Is
good, why don't we keep It
here'" said Jordan's foreign
minister', Kamel Abu Jul>er He
said an argument over venue
posed a "danger of disrupting
the whole momentum ol the
i onferenee
I'he tirst round ot fai to hu )■
negotiations Is to begin III Mu
drid on Sunday, Israeli offu i.ils
■■ nd Hut it will di al only with
proi edit ra I mat ters Still in
question is where the substan
tive In 1 atel a 1 talk-, will l ib
I urn to TALKS f’.iqo 10
Sheik jailed for anti-government stances
MANAMA Militant M’.
Sheik Mohammed al i assi, a
millionaire who organized pro
tests ii>;,tins! till* S.iiiiii royal
family. has been arrested m Jor
Man ami taken to Sauiii Ar.ihu
to slant! trial (nr treason, Ills
Ament an lavs yer said
A! Iassi, a Sautil citizen, was
arrested about a month ago by
Jordanian sin airily agents a! the
Intercontinental Hotel in Am
man and taken to Saudi Arabia,
diplomatic sources 111 Riyadh
salt!
Idle Simri es, who spoke oil
condition of anonymity, said
al I assi has been Irving to or
gam/e publii gatherings to pro
test Saudi pola y
M !'u i m hr-, early Ills, is
kn i» n thi! Mni.
lor Ins multi million iloil.tr ill
v <ii i settlement In mi .m It .1! 1.111
wilu mid lor .iiififiiiiu his Hot 11
Iv Hill-., ( .ilit neighbors with
nude statues ■,iiit.slilt' his ri:si
iii'ii< i' Hi: Il ls homes in Ktirupi'
.mil tin- I Suited St.ilos
\i I . 1 ss 1's .\morii ,m lawyt• r,
I1 Lee H.nli'V, sail! Tuesday ill
New York In' was appealing to
I’ri siilimt Bush to intervme on
holla 11 ul a! I'ussi Bailey said
his client could I n i' heheadlnp;
Al l ass) was in Baghdad alter
the invasion ot Kuwait, where
he said publicly that the
1 ham es lor lor peat e in the
Middle hast would he ell
ham i ii it dn lalnrships and
Hu ai.iri hii ■ vs i ii, Id I■ n jilai i d
in ih'till »t in y. Hatley said
In it telephone conversation
■v Hli Ihe \-.-.iit cited Press In
II.dii.mi mi Hi'din div. Halim
said al l assi had been permit
lt d tiy his i aplui s In in.ikr .i lid
nptiuiii' i all Id his sister in Mor
nil
Mi- (old her tin was ’ held m
mliiim.irii' conditions anil iidi
i ulfd. Halles said
U r dim'l know where lie is,
and we dim l helleve he’s been
i harped with anythilip. Hailey
said He's jusl .in outspoken
votinp in,in
Weasel’s World
Kraig Norris
A 7r
111? •
I wRi rt
mi m in ,
THAT CLASS/!
.. ■
Oscar the Freshman
Neal Skorpen
WfcU , STUifCXZ
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