August 1, 1994 - Part 2
August 1, 1994 - Part 2
(13:10:20) Mr. RYAN. Yes, I do, Senator. I've thought a lot about this. The responsibility for maintaining the confidentiality of that information, of any information, investigative or otherwise, that could damage a case that the RTC is bringing, is a responsibility first and foremost of the RTC itself. We haven't been very good about keeping those matters confidential. It's almost a certainty that any matter that has any kind of public interest at all is leaked to the press prematurely. Senator MURRAY. So, it could indeed damage a case that you have in front of you? 49 Mr. RYAN. It could, and we're quite I concerned about it. I think partly it's the nature of the RTC, We have 6,500 employees, many of whom are going to be out of a job come tile end of next year when the RTC goes out of business. There's riot much of an incentive for institutional loyalty. There's not much concern by the employees of RTC about doing something that might affect their em-ployment there, and we've had a lot of premature leaks of very sensitive information.' Senator MURRAY. What are your plans to deal with that? Mr. RYAN. We've tried to impress upon the staff the need to preserve that confidentiality. We've tried to deal with their anxieties about what's going to happen with their em ployment. Senator MURRAY. Are you going to continue to print the RTC Early Bird? Mr. RYAN. Um The CHAiRmAN, Let me offer an opinion. I sure hope you don't, just as one observer, 1 think, if there is one thing that's clear now, that document has outlived its usefulness, but excuse me-, Senator Murray. Senator MURRAY. Thank you, Mr, Chairman, I would like to ask Mr. Katsanos a question at this point. Senator BoxER. Did you get an answer to your question? Senator MURRAY. Mr. Ryan, first, could you tell me if you're going to continue to have the Early Bird printed? Mr. RYAN. I hadn't considered terminating it, but we'll certainly consider it. Senator MURRAY. Mr. Katsanos, in terms of this Early Bird, are you aware that it's also known as the 'leak sheet? Mr. KATSANos. No, Senator, I wasn't, but I'd like to point something out regarding the Early Bird. Nothing goes into this publication that is not relayed to us by reporters. We don't state what the agency's position is or what the agency's response,,; to the reporters are. The reporters are coming to us first, based on someone they've talked to, frequently someone sitting in the back aisle in this room. They're coming to us with the story, and they asking for our reaction. What we're telling OUT managers IS here's what the reporters have and what we expect could appear. Senator MURRAY. I'm not sure how many employee's you have in the RTC who actually see this, but I assume once it gets put on a piece of paper, it gets disseminated to a lot of people. I can imagine what I'd think if I were an employee in your office, and I re ceived this and saw something that says, The Rose Law Firm's alleged undisclosed conflicts of interest and internal RTC sources, suggestions that multiple referrals to the Justice Department link the. firm's - -members, friends, and loans to insolvent S&L's are being pursued by The Washington Post and the Associated Press. If this comes into some employee's hands who may not be higher-up, it's pretty much public information, wouldn't you say? Mr. KATSANOS, I would have to agree with that, Senator, and that's why each recipient of this publication has been Urged to treat it as a confidential document, not is a public document. I would also point out, Senator, that------- Senator BoxER, Would the Senator yield briefly to me at this Point? Why doesn't it say confidential"? 50 Mr. KATSANOS. I don't know that a stamp mark confidential" would make any difference, Senator. Senator BOXER. I disagree with you completely. Sorry, Senator. Senator MURRAY. I will say that the message I just read is dated September 30, which, I believe, is the day after Jean Hanson went to the White House. I guess I have one other question Mr. KATSANOS. Senator, I recall, in the documents your staff showed me, I did see a Jean Hanson memo with an Early Bird attached that I was told she forwarded to the White House. As I was about to say a moment ago, I had never been aware of this publication making it outside of the RTC until we began distributing it to the Treasury Department. Senator MURRAY. I have one other question, Mr. Chairman. Mr. Katsanos, it's for you. In your opinion, how did The New' York Times receive information about criminal referrals regarding Madison?