Reply #7: "Silverado" Neil Bush has a history as a real Desperado... [View All]

[Octafish]

The guy was a Director of Silverado savings and loan, a crooked S&L that sent multi-million dollar loans to friends and family that were never repaid. The bailout cost taxpayers more than $1 billion.


O, BROTHER! WHERE ART THOU?
Like Hugh Rodham, the Bush Bros. Have Capitalized on Family Ties

BY LOUIS DUBOSE
March 16, 2001:

Unless you've been reading the Houston Chronicle society page, it's unlikely you've seen any current news about Neil Bush. The third Bush sibling has been almost as invisible as his apolitical brother Marvin, a venture capitalist living in northern Virginia, and his sister Dorothy "Doro" Koch, the youngest of the five Bush siblings, who quietly raises funds for charities in a Maryland suburb near Washington. While Jeb was governor of Florida and George W. was twice elected governor of Texas, Neil was either part of the late Maxine Mesinger's "crème de la crème crowd" at a Houston social event, or a stale S&L footnote: "the director of Silverado Banking, Savings and Loan when it crashed in 1988 at a cost of $1 billion to taxpayers."

In 1990, Bush paid a $50,000 fine and was banned from banking activities for his role in taking down Silverado, which actually cost taxpayers $1.3 billion. A Resolution Trust Corporation Suit against Bush and other officers of Silverado was settled in 1991 for $26.5 million. And the fine wasn't exactly paid by Neil Bush. A Republican fundraiser set up a fund to help defer costs Neil incurred in his S&L dealings. Friends and relatives contributed -- but not then-President and Barbara Bush, which would have been unseemly. Since then, the Bush political combine has done such a remarkable job keeping Neil in the background that what seemed like a 10-year news blackout didn't end until mid-February, when the Austin Business Journal reported that Bush "quietly is heading a local start-up that's raising at least $10 million in second-round funding." According to the business newsweekly, Bush has already raised $7.1 million from 53 investors underwriting Ignite! Inc., an educational software company. After being banned from banking and all but airbrushed out of the family portrait -- or at least the family news profile -- Neil Bush is back.

Bush wasn't just an average S&L exec drawing a big salary and recklessly pushing a federally insured institution beyond its lending limits. As a director of a failing thrift in Denver, Bush voted to approve $100 million in what were ultimately bad loans to two of his business partners. And in voting for the loans, he failed to inform fellow board members at Silverado Savings & Loan that the loan applicants were his business partners. Federal banking regulators later followed the trail of defaulted loans to Neil Bush oil ventures, in particular JNB International, an oil and gas exploration company awarded drilling concessions in Argentina -- despite its complete lack of experience in international oil and gas drilling. It probably helped that the Bush family had cultivated close ties with the fabulously corrupt Carlos Menem, former president of Argentina.

CONTINUED...

http://www.austinchronicle.com/issues/dispatch/2001-03-16/pols_feature3.html