S L Debacle

In the 16 years since his release from prison, disgraced junk-bond king Michael Milken has beaten prostate cancer, raised hundreds of millions of dollars for medical research and reshaped an image tarnished by a 1990 conviction for securities fraud. One thing he's been unable to do is win a presidential pardon, despite the support of some of the country's most influential people. Before he left office Jan.

I commend your coverage of Don R. Dixon's indictment ("Ex-Owner Is Indicted in Collapse of Vernon S&L," June 14) and would like to see more reportage of the S&L debacle that appears to be bankrupting our nation. If we taxpayers must bear the brunt of the bailout, we want to know who is responsible for this mess. Who has benefited? Who has suffered, and why? Where's the money trail? What is the Justice Department doing? I think these issues are more important than flag burning, pornography and sex scandals.

King George and his rich buddy Treasury Secretary Nicholas Brady have immorally proposed a windfall for the rich at the expense of the rest of us (Part I, Jan. 31). They propose "to reduce the maximum rate on capital gains to 15% from the present level of 28% to 33%." This cuts in half the amount that the rich, like Brady, pay in taxes. This is in the face of the enormous debt, the multibillion liability of the S&L debacle, and all the other fees, taxes and debts the government says we have to pay. GEORGE TOOBY San Marino

Jonathan R. Macey is so right in his assessment of bank insurance encouraging irresponsibility ("A Good Idea Gone Sour: Can Bank Insurance Fail?" Opinion, June 24). Most people would blame "deregulation," but really it was a case of not deregulating far enough.

Thank you for bringing to our attention that it only costs about $1,260 to gain the support of the Democratic Party. I believe that is money well spent for City Councilman Mark Wirth toward his campaign for the state Senate. In a world where it costs Republicans their personal integrity if not their soul, by evidence of their stealing from the poor to maintain the rich, as in the S & L debacle, that's a bargain. Now that you have investigated our local Democratic politician with such scrutiny, if you'll do the same for all of the Republican candidates you can consider yourself a good investigative reporter.

The Securities and Exchange Commission is conducting an "informal inquiry" related to Great Western Financial Corp.'s disclosures last year of real estate loan problems that caused a $77.3-million loss for the Beverly Hills-based thrift in last year's fourth quarter. In an SEC filing, the parent of Great Western Bank said that it was notified of the probe on Friday and that the agency will be requesting documents related to its 1989 financial statements.

Taxpayers and PERS (Public Employees Retirement System) rank-and-file membership should be outraged at the recent disclosure of unethical conduct by retired public officials of the city of Anaheim and seven other cities. The PERS retirement benefit formulas already clearly favor administrative positions at the expense of the rank-and-file worker. But these generous benefits weren't enough for Anaheim's former city manager (William O.) Talley and former fire chief (Bob) Simpson.