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Q.

A.

Did you reach a conclusion that there were bank employees on a
vendetta against Liveoin?

No.

(TR 371)

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

. 256) This sharge was modified under ACC'a questioning:

Q.

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

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 pare.

(TR 381)

She also said:

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

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

(TH.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 criticisms of her "side letter" in my testimony to the Committee. (Committee Hearing Transcript, Part 5, p.22)

In any event, while Xa. Stewart acknowledges that she bears personal animus against me (Appendix 55), she has not withdrawn her claim as to "parjury," (TZ 343-65)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,

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SPECIAL COUNSEL

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

WAS NOT TOO LATE.

PHONE: 202-457-9060

THIS WEEKEND

Thinsday

Richard Samher

Rove clark.

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