WASHINGTON -- President Bush defended Friday the honor and integrity of his son, Neil, a former director of a failed Denver thrift whose actions are under review by federal regulators.
'What dad wouldn't have full confidence in the integrity and honor of his son?' Bush said at a morning news conference. 'This is a fine young man. I'm convinced that if he has done something wrong the system will so state.'
In January, the Office of Thrift Supervision considered action that would have banned Neil Bush from ever again serving as a thrift or bank director, saying he violated conflict of interest rules on three occasions by failing to disclose relationships with business partners.
Upon further investigation, thrift regulators decided there was not enough evidence to support the stiff penalty and agreed to seek a softer cease and desist order, which would prohibit Bush from violating conflict of interest rules in the future.
Bush served as a director of Silverado Banking, Savings and Loan Association from 1985 until August 1988, shortly before his father was elected president. Silverado was taken over by government regulators in December 1988, four months after Bush stepped down as a director.
Bush, who lives in Denver and is in the oil industry there, has denied any wrongdoing while he served on Silverado's board. Rescuing the failed thrift is expected to cost taxpayers $1.6 billion.
According to a draft OTS document prepared in January, Bush did not disclose to Silverado's board that while it was considering taking an $8 million loss on a loan to Kenneth Good, a Denver real estate developer, Good was contemplating paying $3 million for controlling interest in JNB Exploration Co., an oil and gas drilling partnership managed by Bush.
The document also outlined charges that through one of his partnerships with Good, Bush was the beneficiary of a $900,000 line of credit approved by Silverado's board.
Neil Bush, testifying last month before the House Banking Committee, denied any wrongdoing and has contested the OTS actions against him. OTS Director Timothy Ryan, appointed by the president in April, said earlier this week that a decision on Neil Bush is still pending.
The uncertainty surrounding the Neil Bush investigation has prompted some members of Congress, primarily Democrats, to charge that the OTS is giving the case special treatment.
'Can any agency of the United States fairly and impartially investigate the son of the president of the United States,' Rep. Frank Annunzio, D-Ill., said at a recent banking committee hearing.
President Bush, responding to reporters' questions, said he fully expects the system to work. 'And the system is going to work, whether it's the president's son or somebody else,' he said.
The president told reporters that he will stay out of the investigation involving his son, adding that 'the system's got to go forward.' He said his son 'would be the last to ask me in any way to get involved in any side or the other.'
The president also said he has discussed the Silverado situation with his son but 'only in that broad parental way.'
The president has five children, four of them sons. Neil, the middle child, was described by his father as 'a good kid' and the most sensitive of his sons.
'It's not easy for him but he'll do okay,' Bush said.