The chairman of the House Banking Committee wants to know what happened to $98 million that the Federal Reserve Board lent to Lincoln Savings & Loan during the first four months after regulators took control of the Irvine thrift in 1989.
In a letter to the Fed that he released Monday, Rep. Henry B. Gonzalez (D-Tex.) said he was concerned that the money might have been used to pay off uninsured Lincoln depositors and creditors and "even more concerned" that some of it paid off any accounts of Lincoln owner Charles H. Keating Jr. or his family.
Gonzalez is seeking the information on Lincoln as part of a full report he wants on all 1989 loans that the Fed made to financial institutions through its discount window, which is where banks themselves go to borrow.
He asked two banking and thrift agencies--the Resolution Trust Corp. and the Federal Deposit Insurance Corp.--to cooperate with the Federal Reserve in providing Congress with information on discount window activities.