DENVER, SEPT. 5 -- Two developers who defaulted on $132 million in loans have refused to appear before a congressional subcommittee investigating the failed Silverado Banking, Savings and Loan.
Kenneth Good and Bill Walters had been scheduled to appear voluntarily Thursday, but their refusal forced Rep. Frank Annunzio (D-Ill.) to cancel a hearing before his House Banking Committee oversight subcommittee.
Annunzio said in a statement released today by his Washington office that he will seek a subpoena to force Walters and Good to testify.
Annunzio said Walters's attorney insisted his client should appear in a nonpublic session of the financial institutions supervision, regulation and insurance subcommittee.
Gil Thurm, Good's Washington lawyer, said his client agreed to attend but had a scheduling conflict.
Members of Congress want the two Denver developers to explain how they are able to maintain affluent lifestyles after claiming in earlier congressional testimony to have a "negative net worth."
The two invested in Silverado board member Neil Bush's Denver oil company. President Bush's son denies any wrongdoing in his subsequent voting as a board member to approve the loans on which Good and Walters later defaulted. Federal regulators closed Silverado in December 1988, and its failure is expected to cost taxpayers up to $1 billion.