Magazine article The Nation

Next: The C.I.A.-HUD Connection

Magazine article The Nation

Next: The C.I.A.-HUD Connection

Article excerpt

The C.I.A.'S complicity in the S&L scandal has become part of the brief against the Company ever since The Houston Post in early February began a series of stories linking alleged agency operatives, mobsters and failed thrifts. The intriguing Post stories do deserve attention, though not because they uncover a grand C.I.A. scheme to loot thrifts. Rather, they reveal the murky world where C.I.A. and private business sometimes intersect. At first the Post stories were a bit soft. The newspaper reported that it had evidence that "suggests a possible link" between the C.I.A. and organized crime in the failure of at least twenty-two S&Ls. It listed the thrifts but then failed to detail all the connections. Reporter Pete Brewton was on to something, however. He has detailed three cases in which individuals with purported C.I.A. ties (in varying degrees of strength) were mixed up with S&L failures. They are:

Robert Corson-a Houston developer who bought Vision Banc Savings, made a shaky $20 million loan to finance a land deal involving organized crime figures and C.I.A. operatives (who aren't identified by the Post) and became the target of a federal inquiry. The post quotes an unnamed former agency operative saying Corson transported cash for the C.I.A.

Ray Corona-a Miami banker convicted in 1987 of racketeering. In 1984 Peoples Savings and Loan lent Corona $3 million to help keep his own bank open. Peoples also lent money to a Corona associate who had borrowed from an S&L that had lent funds to a business colleague of Corson, the reputed C.I.A. operative. …

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