August 1, 1994 - Part 3
August 1, 1994 - Part 3
(14:01:05) Mr. RYAN. I have not seen that report. I haven't had an opportunity to review it in depth. Senator BOND. Let me ask you another way. Were you to have' an exception that said if there was a prospective leak or a possible press inquiry, would that not open you to disclosure of every piece of confidential information? Mr. RYAN. It would. Senator BOND. Excuse me, let the record say that Mr. RYAN. It would. Senator BOND. -Mr. Ryan said that it would. Because, once the press found that the RTC was a great fishing ground, you could expect Mr. Katsanos' phone to ring 24 hours a day. Is that correct? Mr. RYAN. That's correct. Senator BOND. Mr. Katsanos? Mr. KATSANOS. That is correct. The CHAiRMAN. Sounds like it's been ringing 24 hours a day. Senator BOND. I bad some questions for Mr. Roelle. The CHAIRMAN. He'll be back in just a -moment. Ile had to step away for a second. Mr, KATSANOS. Senator Bond, may I inject one point here on the question of referrals? Senator BOND. Yes. Mr. KATSANOS. Our policy is if a reporter approaches our office and has information, and in our determination very good information, about a referral, we still would not acknowledge it. Senator BOND. I thank you, sir, and I believe that makes great sense. Ms. Kulka, let me turn to you. What was it that led you to write the memo on February 4, 1994, discussing appropriate limitations on discussion? Was there a query? Was there information that came to your attention that necessitated such a memo? Ms. KULKA. I think it was partly my frustration for seeing how things operated at the RTC, especially Mr. Katsanos' Early Bird, which I believe spread information around to inappropriate people. For instance, those things are not marked confidential. They're not delivered in sealed envelopes. They are delivered to the outside inbox so anyone passing through my office, for instance, could see them. I thought they provided a lot of information or misinformation that we would neither want to deny nor admit, and that was endemic to what was going on at the RTC that caused me the kind of concerns that led me, after the discussion with Mr. Ryan, to issue this memo. Senator MACK. With respect to-was there a particular reason why that memo was written 2 days after the White House meeting? Ms. KuLKA. No. 67 Senator BOND. You did not know about the White House meeting'? Ms. KuLKA. That's correct. Senator BOND. In preparing the briefing for the February 24, 1994, appearance before the Banking Committee, did Mr. Altman or Ms. Hanson reveal to the people involved in the meeting the existence of the fall 1993 briefings to the White House? Ms. KuLKA. No. Senator Bond. That was not discussed? Ms. KuLKA. That's correct. Senator BOND. Mr. Roelle, in your first meeting with Mr. Altman, he laid down certain guidelines with respect to special measures to be taken when there were high-profile individuals affiliated with failed S&L's. Is that correct? Mr. ROELLE. The first meeting on Madison? Senator BOND. March 1993. Mr. ROELLE. Yes, sir. Senator BOND. Mr. Altman said he didn't want to read it in the paper. Mr. ROELLE. That's correct. Senator BOND. This became your standard operating procedure. You wanted to make sure he didn't read any of these things in the paper. Mr. RoELLE. That's correct. ..Senator BOND. If they involved high-profile individuals. Mr. RoELLE. That's correct. Senator BOND. Mr. Roelle, were you involved in any discussions with Mr. Altman, Ms. Hanson, Mr. Newman, or other Treasury officials in the time period of March to May 1993, on the issue of the RTC's position on extending the statute of limitations which, as you may recall, was conveyed in a reversal of policy and the letter signed May 4, 1993, by Mr. Altman, in which the RTC went on record as saying it no longer supported extension of the statute of limitations? Mr. ROELLE. Yes, I'm aware there were a number of discussions. Senator BOND. Who was involved and what was the subject of those discussions? Mr. ROELLE. It's whether-there's two issues, just so everybody understands. There's two issues relating to the statute of limitations, There's one relating to our ability to pursue cases that have wrongdoing with regard to willful intent and fraud. And then there was the issue-the later issue with regard to some of the States being in conflict with