Accusations that a former top official of the Federal Home Loan Bank Board violated conflict-of-interest laws while in office are "uncalled for," "unfair" and "simply a cheap shot," Bank Board Chairman Edwin J. Gray said yesterday.
Gray's statements came in response to accusations concerning Norman H. Raiden, who resigned in December as the bank board's chief counsel.
On Wednesday, Rep. John Dingell (D-Mich.), chairman of the oversight subcommittee of the House Energy and Commerce Committee, accused Raiden of violating federal reguations by signing documents that affected a savings and loan for which Raiden once worked.
The bank board regulates savings and loans.
Since last summer, Dingell's subcommittee has been examining the April 1985 failure of the Beverly Hills Savings and Loan Association as part of a larger probe into the ability of regulators to monitor the thrift industry.
The hearings revealed that Raiden, while at the bank board, signed nine documents affecting the California thrift. As a lawyer with McKenna, Conner & Cuneo in Los Angeles -- to which he returned in December -- Raiden for years was a key lawyer for Beverly Hills until he left to join the bank board in 1983.
Raiden has said that none of the documents he signed concerned issues he worked on at McKenna. After reviewing a report by the bank board's inspector general, Gray agreed that Raiden acted ethically.
In a letter to Dingell yesterday, Gray repeated his belief that Raiden did nothing wrong. Gray said he was particularly upset with Dingell's statement that, "Now that Mr. Raiden has completed the revolving-door cycle by returning to his former law firm . . . the subcommittee concerns regarding . . . the McKenna firm and its clients have been proven accurate."