Whitewater Hearings August 1, 1994 - Part 1
Whitewater Hearings August 1, 1994 - Part 1
(11:15:37) Ms. KuLKA. I'm sorry. Would you repeat the date, sir? Senator DAMATO. From January through mid-February. Ms.-KuLKA. Yes. senator D'AMATO. OK. Were there any other specific cases in which you gave a briefing to Mr. Altman during that period of time when he was the bead of the RTC? Ms. KULKA. The only other case that I remembered was the Diamond litigation. Senator DAMATO. OK. What is the Diamond litigation? Ms. KuLKA. This is litigation where the RTC, as receiver, has property that is subject to the rent control laws in New York. The RTC has carried this case through the circuit court successfully to 13 pre-empt the State rental control laws and to free certain of the units from the application of that law. This was another case where we had a lot of congressional inquiry and the Deputy Secretary and Interim CEO were interested in it. Senator D'AMATO. Is that the only other case you ever spoke to Mr. Altman about? Ms. KuLKA. That's the only other case I recollect speaking with him about. Senator D'AMATO. OK Thank you very much. The CHAiRMAN. Senator Dodd. OPENING COMMENTS OF SENATOR CHRISTOPIIER J. DODD Senator DODD. Thank you very much, Mr. Chairman, Let me thank all of you, by the way, for being here today. I think it's important to pick right up on the line of questioning that Senator D'Amato has raised with Ms. Kulka. Let me ask you very directly, did you tell anyone that the RTC would not bring a case because of the inability to put documents together prior to February 28, 1994? Ms. KULKA. No, sir. Senator DODD. You talked to no one about that, at the White House? The Treasury? Ms. KULKA. I never said that to anyone at the RTC because that was not the case. Senator DODD. Nor at the White House? Ms. KULKA. I've never spoken to anyone at the White House. Senator DODD. Nor at the Treasury Department? Ms. KuLKA. No, sir. Senator DODD, Thank you very much, Mr. Chairman, I think it's important for the purpose of clarity here to lay out exactly where we are with regard to this phase of the investigation. Let me quote from Mr. Fiske regarding this particular question the Committee is asked to address-that is, whether or not any illegal activity occurred surrounding the so-called contacts issue. I the quote from the Fiske statement. He says: The evidence is insufficient to establish that anyone within the White House or the Department of the Treasury acted with the intent to corruptly influence an RTC investigation. Therefore, the evidence of the events surrounding the contacts between the White House and the Treasury does not justify the prosecution of anyone for the violation of Section 1505, which is obstruction of Federal proceedings. We have also concluded that the evidence does not justify a criminal prosecution for violation of any other statute. I think it's very important that that statement by Mr. Fiske be included in the record. Second, Mr. Chairman, I think it's important to note that the Office of Government Ethics concluded in the last 24 or 48 hours that there were no ethical violations in this matter at all, I think it's important to note that. . Now this Committee may draw a different conclusion, but I think its important that the record reflect that, at this particular juncture. I think it's also important to note who the Office of GovernMerit Ethics is run by---- Stephen Potts, who was appointed by President Bush. This is not a Lloyd Bentsen appointee. It's an independ 14 ent agency that Secretary Bentsen asked to examine this issue on March 3, 1994, and at the request of Mr. Fiske, delayed that investigation until June 30, 1994. They spent the last month going over all the documentation and that independent agency, under the direction of an appointee of President Bush, concluded there were no ethical violations in this particular matter. Now, if I may The CHAIRMAN. Senator Dodd, before you go on, that report is out and I think we ought to make it a part of our own records just for reference purposes. Senator DODD. I would move that that be the case. The CHAIRMAN. Without objection, it is so ordered. Senator DODD. I would point out as well that they pointed out some troubling contacts and this Committee ought to examine those troubling contacts. I think it is important. When I first heard about it, I thought, well , maybe this is just a Treasury Department group. I discovered it was an independent agency under the direction of Mr. Potts and career people, not political people, looking at these issues. Now, I'd like to ask each and every one of you to respond to the following question, and I'll begin with you, Mr. Roelle. Did any official at the White House ask you to take, or instruct you to take any action to obstruct or impede the Resolution Trust Corporation's handling of either the criminal or civil cases against Madison Guaranty? Mr. ROELLE. No, sir. Senator DODD. Ms. Kulka? Ms. KuLKA. No. Senator DODD. Mr. Ryan? Mr. RYAN. No. Senator DODD, Mr. Katsanos? Mr. KATSANOs. No, sir. Senator DODD. What is it? Mr. KATSANOS. No, sir. Senator DODD. Did any one of you take any action to obstruct or impede the Resolution Trust Corporation's handling of either the criminal or civil cases against Madison Guaranty? Mr. Roelle? Mr. ROELLE. No, sir. Ms. KuLKA. No. Mr. RYAN. No, sir. Mr. KATSANOS. No, sir. Senator DODD. I thank all four of you. Mr. Chairman, I'll yield back the balance of my time to others who may have some questions.