GO SIMON
Posted on 09/22/2002 3:04:20 PM PDT by NormsRevenge
Edited on 04/12/2004 5:44:33 PM PDT by Jim Robinson. [history]
WASHINGTON -- On the fifth floor of the U.S. Court of Federal Claims, a dozen or so lawyers are battling over how much money investors in Western Federal Savings and Loan should be able to recover because Congress breached the federal government's contract with them.
(Excerpt) Read more at sacbee.com ...
We know the truth with regard to Davis, he is corrupt!
calgov2002:
 California Laws for Sale calgov2002: for old calgov2002 articles. calgov2002: for new calgov2002 articles. Other Bump Lists at: Free Republic Bump List Register |
Justice Department lawyers have referred in court to documents Simon signed as a director. But throughout, the head of the holding company was Preston Martin, an eminent player in the national banking and finance business. A former California thrift regulator, Martin went on to become vice chairman of the Federal Reserve Board and is credited with the idea of adjustable-rate mortgages.
According to Martin, Simon played a limited role in the thrift.
"He was an effective board member and asked piercing questions," Martin said during a break in the trial. "But he was a very minor player, and he didn't mismanage anything."
All this happened at the same time the California economy was in recession and the housing industry in deep trouble. Because Western Federal's business was largely in the housing market, it was being hammered with rising numbers of default loans.It's worth noting that this was not really a choice the thrift had. Thrifts were created in the first place to issue housing loans, and until fairly late in the game those were the only loans they could issue.
Davis' exploitation of this case is pretty low, considering that there has already been a verdict in Simon's favour. All that remains is how much he gets, not whether he was guilty of malfeasance. That part's already been settled with a firm "No!".
D
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.