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THE WITNESS: I don't know if there is such a thing as hard
evidence of animus. It is personal testimony.

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Q. Did you reach a conclusion that there were bank employees on a
vendetta against Lincoin?

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Ka. Stewart testified to Congress that Chairman Gray and I sought to "punish" Lincoln for its opposition to the direct investment rule. (Testimony, Part 5,

p. 256) This charge was modified under AGC'a questioning:

Q.

Do you believe that Black and Gray tried to punish Lineola for
its vocal objections to the direct investmant rule?

A.

This is one of those phrases where my choice of words was not
very good. I don't think "punishing" was exactly the right
word.

I think using them as an example of a direct investment
violation is a correct conclusion.

And I don't think that the use of the word "yunishing" vas
very wise choice of verda on my part.

(TR 381)

She also said:

I do not believe that had Lincoln challenged the [direct investment)
reg, without already being in violation of is, that people would
have had this desire to hold them out as the example.

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The foot was there was a violation, and there was opposition to the
regulation. And I believe that these two things together wore
intolerable to Mr. Oray. And I understand that.

(TK 384)

Unfortunately, ACC's counsel did not question Ks. Stewart as to the basis for her claim that I should be investigated for perjury" because of my criticisme of her side letter" in my testimony to the Committee. (Committee Hearing Transcript, Part 5, p.22)

In any event, while Ka. Stewart acknowledgon that she bears personal animus againet me (Appendix 55), she has not withdrawn her slain as to "perjury," (TR 343-65)

I would like to thank you and the Committee for your past assistance in improving thrift regulation and protecting the taxpayers from further loss. Sincerely,

William K. Blish.

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SPECIAL COUNSEL

Senator's

Phone call list
and Messages

38-020-91 - 6

SPECIAL COUNSEL
EX. 536

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CHAIRMAN GRAY CALLED, SAID HE HAD INFORMATION THAT "YOU WOULD WANT TO PLEASE CALL HIM AT HOME. SAID THAT 11:00-11:30 (Wash time)

HEAR."

WAS NOT TOO LATE.

PHONE: 202-457-9060

THIS WEEKEND

Thrusday

Richard Sauher

Rove clark.

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