President Bush's son Neil was guilty of conflict of interest but should be allowed to accept a future position with a savings institution under certain restrictions, an administrative law judge says.

The Office of Thrift Supervision charged Neil Bush in January with conflict of interest in his role as a director of the failed Silverado Banking, Savings and Loan Association of Denver.Administrative Law Judge Daniel J. Davidson, who found that Bush exposed Silverado to "abnormal risk," could have recommended he be barred permanently from the banking and savings industries.

Instead, Davidson proposed to OTS Director Timothy Ryan that Bush be required to meet certain conditions if he again becomes a director or officer of a savings and loan or bank.

For example, Davidson said, Bush should be required to get advice from a lawyer on potential conflicts of interest if he takes such a position. His recommendations, made Monday, were announced late Tuesday by OTS.

Davidson's proposals followed closely the recommendations of OTS lawyers in the case against Bush, 35, an oil and gas developer. Davidson agreed with the OTS attorneys that Bush's failure to fully disclose his business ties "involved a significant conflict of interest constituting an inherently unsafe or unsound practice."

Silverado's collapse in December 1988 is expected to cost taxpayers $1 billion.

In his recommendation, Davidson said Bush's conduct was "contrary to generally accepted standards of prudent operations and exposed Silverado to abnormal risk."