Texas Senator Linked to S&L Operator
SEN. Phil Gramm helped a troubled Texas thrift operator deal with regulators after the man picked up more than $50,000 worth of building expenses on the senator's home, the New York Times reported yesterday.Skip to next paragraph
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The man's three savings and loans collapsed in 1989 and their bailout will cost taxpayers an estimated $200 million, federal regulators said.
Mr. Gramm, a Texas Republican, is a member of the Senate Banking Committee, which is overseeing the cleanup of the nation's savings and loan scandal. The collapse of several once-prominent savings and loans has cost taxpayers billions of dollars.
The Dallas businessman, Jerry Stiles, was a prominent developer when he took on a building project for Gramm and his wife in 1987 after they bought 35 acres of property on Maryland's eastern shore, the Times reported.
The couple needed a contractor to finish construction on the shell of a two-story vacation house, the newspaper said.
Mr. Stiles flew a crew of workers from Texas, the newspaper said.
He also put up $117,000 for labor, materials, and travel expenses to complete the job, then asked Gramm for $63,000, which was the maximum amount the senator said he was willing to pay, the Times reported.
Neither Stiles nor Gramm could immediately be reached for comment.