Do Bad Guys Walk?

Insiders charge that the S&L cleanup agency is letting friends off easy

No one expected the Resolution Trust Corporation, the oddball agency cobbled together in 1989 to undertake the largest federal bailout ever, to liquidate more than 800 savings and loans without a hitch. And the dubious were right. From the beginning, the RTC, whose charter is to find and prosecute the crooked, the greedy and the inept among the nation's thrift managers, has been dogged by questions of efficiency, propriety and conflict of interest. Last week three RTC attorneys had more bad news; they testified on Capitol Hill that they had been blocked from prosecuting former S&L officials.

"The bad guys walk,"...

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