Political Favors Denied in Securities Sale: Gov....

Political Favors Denied in Securities Sale: Gov. George Deukmejian said politics played no role in the state’s approval of the sale of debt securities by the parent firm of troubled Lincoln Savings & Loan in Irvine. The Republican governor said recent news stories have created a “false impression” that Charles H. Keating Jr., whose Phoenix firm owns Lincoln, wielded political influence within the Deukmejian Administration through his political contributions and connections. Keating’s firm, American Continental Corp., filed for Chapter 11 protection in April. Regulators seized Lincoln the next day. Among the likely losers are 22,000 people who bought about $200 million in unsecured debt securities at Lincoln branches. The sale of the securities had been approved by the state Department of Corporations.