Whitewater Hearings August 1, 1994 - Part 1
Whitewater Hearings August 1, 1994 - Part 1
(11:30:30) Ms. KULKA. Mr. Stephens wasn't hired. The firm of Pillsbury, Madison, and Sutro was hired. In connection with identifying an appropriate law firm to handle this, the Senior Counsel identified four law firms-I don't remember the names of the others-who had experience in complex, sensitive litigation who might be able to handle it. The Senior Counsel asked for bids, asked who had legal services agreements with us where their rates were fixed, and asked for them to provide proposals or bids which would describe cost factors, expertise, and so on. In the course of doing that, the Pillsbury firm identified the personnel, as they must, to comply with our regulations, who might work on the matter. They identified a number of people, including three partners. The lead partner was clearly going to be a person who had handled other high-profile, sensitive matters, and that was a man named Mr. Patterson. Another partner they identified to work on the matter was Jay Stephens who, my staff advised me, was the immediate former U.S. Attorney in Washington who had been appointed by a Republican. Senator SASSER. All right. Ms, KuLKA. If I just might add one more thought. Senator SASSER, Sure. Ms. KULKA. I came -to Washington in the middle of January and, in fact, in the middle of a snowstorm. I do not recollect ever having beard of who Mr. Stephens was before in the North. I knew nothing about the controversial nature of remarks he bad made or who he was, other than what my staff told me. Senator SASSER. The firm of which Mr. Stephens was a partner was hired the same day, I think, that Secretary Altman testified before this Committee. Isn't that true? Ms. KULKA. I really have never looked at the (lay the en gagement letter was signed. They were identified before, and may have even started to work before then. Senator SASSER. The point I'm diiving at is this. Mr. Jay Stephens' law firm was hired at a time before Secretary Altman 18 recused himself and the Jay Stephens law firm was hired in the ordinary course of business of fhe Resolution Trust Corporation, because it met the objective criteria of the agency, I presume. Ms. KuLKA. That's correct. Senator SASSER. So, if Mr. Altman had wanted to act as a tool of the Administration to kill the Madison case, it would have not been very wise to retain the services of the Jay Stephens law firm, it? would . Ms. KuLKA. Mr. Altman never had any role in the selection of counsel and be never tried to. Senator SASSER. Right. That's the point I'm trying to make, Ms. Kulka, and I thank you for making it. Mr. Roelle, is it your testimony that in October 1993, Mr. Altman told Ms. Hanson, the General Counsel -for the Treasury Department, in your presence to go tell Mr. Nussbaum, the Counsel for the White House, about the press leaks that might be attendant to the proposed criminal referrals to the Justice Department? STATEMENT OF WILLIAM H. ROELLE, FORMER SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER, RESOLUTION TRUST CORPORATION, WASHINGTON, DC Mr. ROELLE. I surmise that. He didn't say it that way, Senator. He instructed her to tell a number of people about the impending news release on this matter and be mentioned the name Bernie, along with several other names. He did not say Mr. Nussbaum. Senator SASSER. Did you make that surmise there that day when Mr. Altman allegedly made this communication to Ms. Hanson? Mr. ROELLE. No, sir. I didn't even think about it until actually it was later when I was thinking about it that I realized it could have been Mr. Nussbaum. I remarked to my wife that night it's possible that's who he meant, although I do not know. All I know is that be said Bernie. Senator SASSER. Did you make the connection that it might be Mr. Nussbaum after the meeting with Mr. Altman and Ms. Hanson? Mr. ROELLE. Yes, sir. Senator SASSER, That's curious that it wouldn't occur to you until after the meeting. In other words, he referred to Bernie in the meeting, but it was not until after the meeting that it occurred to you that he might be talking about the White House Counsel, Mr. Nussbaum. Mr. ROELLE. No, I don't think it was curious at all. I had seen something on the press that night about Bernie Nussbaum and it occurred to me at that point that's who be might have meant. Senator SASSER. Mr. Roelle, when it occurred to you that he might have meant Bernie Nussbaum, the Counsel for the White House, what was your reaction? Did you think it was proper for Ms. Hanson to discuss this matter with Mr. Nussbaum? Mr. RoELLE. It was a matter of a pending leak that the press bad gotten bold of. I, had self would have wished there had been no contact at all with the White House. But I made no inference one way or the other about what was appropriate in terms of a press leak.