The special counsel to the Senate Ethics Committee has recommended that no action be taken against Sens. John Glenn, D-Ohio, and John McCain, R-Ariz., in an S&L case, a congressional source disclosed Friday night.

The counsel recommended that the committee proceed with an investigation of the three other senators who intervened with regulators on behalf of Arizona savings and loan operator Charles H. Keating Jr., the source said.The other senators from the "Keating Five" group are Donald W. Riegle of Michigan, Dennis DeConcini of Arizona and Alan Cranston of California, all Democrats.

The recommendation from special counsel Robert S. Bennett, a Washington lawyer, was made Sept. 10, but the committee has been unable to decide whether to accept it, the source said.