August 1, 1994 - Part 5
August 1, 1994 - Part 5
(16:50:22) To assist Mr. Altman, I prepared talking points to guide him through both the statute of limitations and the recusal issues. Prior to leaving Treasury for the White House and out of an abundance of caution, I also consulted with my Deputy General Counsel, who is the Designated Agency Ethics Officer, to see whether he had any pragmatic or other concerns regarding the topics Mr. Altman in-tended to discuss. He had none. The meeting took place in Mr. McCarty's office, although Mr. McCarty left before the meeting began. In addition to Mr. Altman and me, the meeting was attended by Mr. Nussbaum, Mr. Ickes, Mr. Eggleston, and Ms. Williams. Mr. Altman read the talking points, including the last point, that he had decided to recuse him-self from any substantive decisionmaking in the Madison civil mat-ter. There was no discussion regarding the substance of the RTC's investigation of the civil claims, and I was not capable of having such I a discussion , since I had no knowledge of the substance of the RTC s investigation. After Mr. Altman's statement on recusal, a discussion ensued. Mr. Nussbaum asked if the matter would be decided by Ellen Kulka, the RTC General Counsel, and Jack Ryan, the Interim Deputy CEO of the RTC, to whom Mr. Altman bad referred in his discussion Mr. Altman responded, "Yes." Mr. Nussbaum also asked why Mr. Altman was recusing himself, since no one appeared to believe that there was any legal or ethical requirement that he do 100 Mr. Altman indicated that I had recommended that he recuse himself. I added that Secretary Bentsen concurred in that judgment Mr. Nussbaum said that he knew Ellen Kulka, or knew of,", from her prior tenure at OTS. Mr. Nussbaum said that he saying that Ms. Kulka was not a good lawyer, but that tough. Mr. Altman responded by saying that he bad enormous confidence in Ms. Kulka, and that be would follow any recomendation he received from her anyway, so his involvement was vant. Mr. Nussbaum expressed his view that even if Mr. Altman intended to follow the staffs recommendation, Mr. Altman's pres- ence as the RTC CEO would ensure that the RTC staff would pur- sue any claims with thoroughness and professionalism. Mr. Ickes expressed the view that, if Mr. Altman were going recuse himself, it would be better if he did it sooner rather later. Ms. Williams asked whether, if the investigation could In completed by the end of February, that meant the tolling agreement would have to be signed. Mr. Altman indicated that thought so. She also asked it counsel for the private parties be contacted. Mr. Altman indicated he thought so, but he was not sure. The meeting ended with Mr. Altman stating that he would think about the recusal issue overnight, and Mr. Nussbaum told him that was all they could ask. The next morning, Mr. Altman told me that he bad decided 'not to recuse himself for the time being. The White House meeting on February 2, 1994, was proper. First, the briefing on the statute of limitations operation did not impart any nonpublic information. It merely apprised the White House of how the law operated, a briefing also given to congressional personnel. Second, the briefing served a legitimate governmental purpose. By the February 2, 1994, meeting, Senator D'Amato and others were counting down the days, wondering whether the RTC would make a decision in connection with possible Madison civil claims before the statute of limitations expired, and what the decision would be. Mr. Altman was aware of the recusal issue, and acted appropriately in considering whether to exercise his discretion to recuse himself a decision that ethics officers advised was entirely up to him and not mandated by ethics statutes or regulations. When he reached a conclusion, it was entirely appropriate for him to tell Mr. Nussbaum and other White House officials.