Bad Day at Jones Day

A record payment gets the law firm off the hook in the S&L debacle

) AMONG THOSE WHO HELPED CHARLES KEATING BRING about the 1989 collapse of Lincoln Savings and Loan, lawyers in the Cleveland firm of Jones, Day, Reavis & Pogue were pivotal. Without admitting actual guilt, the gigantic firm has agreed to pay a record $51 million to the Resolution Trust Corporation, the federal body managing the assets of failed S&Ls. According to the RTC, Jones Day attorneys -- hired by Keating in 1986 -- were well aware that Keating was practicing financial and legal legerdemain to conceal Lincoln's serious problems. Yet Jones Day raised no alarm. The resulting failure cost taxpayers at...

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