August 1, 1994 - Part 5
August 1, 1994 - Part 5
(16:35:19) Ms. HANSON. Thank you. Mr. Chairman, Members of the Committee, I "am Jean Hanson, General Counsel of the Treasury Department. I have been privileged to hold that position since June 1993. 1 am testifying to ay pursuant to Senate Resolution 229 exploring communications between Treasury officials, including me, and White House personnel relating to Madison Guaranty Savings & Loan. 96 Out of respect for this Committee's work and for the investigation that preceded this Committee's work, I have refrained from speaking with reporters about this matter. There have been many recent leaks of my testimony and documents, which include numerous misstatements and mischaracterizations, I welcome this opportunity to testify publicly and to speak for myself. I hope you Will make your judgments based on my testimony today. I have tried my best to recollect everything that occurred about this matter. I have also reflected on the reasons for these conversations. I know that these conversations violated no law, no rule, and no ethical standard. I also know that they were appropriate and that they furthered legitimate governmental interests. Before I turn to Madison, I want to tell you a little about myself. For nearly two decades before coming to Washington, I practiced law in New York and worked on complex corporate transactions., I came to New York from Minnesota, where I was born, and where I was reared to do things in a straightforward, Midwestern style: Honestly and by dint of hard work. I am not a "Beltway Insider," I am not a political person. Prior to coming to Washington, I bad no contact whatsoever with the President or the First Lady. I did not campaign for them, or for any candidate, and I do not owe my Treasury appointment to political activism. I was recruited for my position. My husband is a Republican-until recently. I did not know Secretary Bentsen before I accepted his offer to become Treasury General Counsel. Indeed, I didn't know anyone at Treasury or in the White House. I accepted Secretary Bentsens offer for one reason. I wanted to contribute to the important work of the Government, and give something back to my country. I still do. At the outset, I would like to address my role in RTC matters. As Treasury General Counsel, I am charged with carrying out duties and assignments given to me by Secretary Bentsen and Deputy Secretary Altman. I fulfilled assignments relating to the RTC given to me by Mr. Altman and, at times, Secretary Bentsen, but at no time did I ever hold any position at the RTC nor have I ever acted as RTC General Counsel. To say the least, the RTC is an unusual entity and people often misdescribe it and its functions. For example, it is a corporation, not an agency, except for limited purposes. It is not a regulatory body because it doesn't regulate anything. It is not independent. The RTC CEO serves solely at the President's pleasure, unlike independent agencies such as the SEC and the CFTC. It has a finite life span, scheduled to end next year. Except for its CEO, it has no employees and must carry out its functions by utilizing FDIC and Executive Branch personnel, including Treasury employees. As Interim RTC CEO, Mr. Altman had statutory authority to seek the assistance of Treasury personnel on matters related to RTC functions. And, as Deputy Secretary of the Treasury, he had the authority to grant the assistance of such personnel. Mr. Altman asked me to assist him with policy-related and other matters involving the RTC, and I did so. Mr. Altman undertook to serve two jobs for a limited period. He was entitled to all the assistance he 97 could muster. It was entirely appropriate for me to assist him in an legitimate way he requested.