August 2, 1994 - Part 2
August 2, 1994 - Part 2
(11:59:57) Hearing resumes: The CHAIRMAN. The Committee will resume. Let me invite everyone to find a seat and we'll start momentarily. The next Senator to direct questions will be Senator Bryan from Nevada. OPENING COMMENTS OF SENATOR RICHARD H. BRYAN Senator BRYAN. Thank you very much, Mr. Chairman. Mr. Steiner, I have a couple questions for you. The record of this proceeding will reflect, and your own testimony bears out, that you yourself thought it was the better course of action for Mr. Altman to recuse himself. My recollection of the record is that Mr. Stephenopoulos agreed. Ms. Kulka agreed. Ms. Hanson agreed, Mr. Nye a agreed. My question to you first is, are you aware of anyone other than Mr. Nussbaum who disagreed with the basic premise that it would be a prudent course of action for Mr. Altman to recuse himself? Mr. STEINER. Well, Senator, let me say that at different points in time, different people had different views on the subject. I, myself, for example, didn't arrive at that conclusion until several conversations bad taken place. I recall the other members of the Treasury staff also went through periods of internal deliberations about is issue. I recall that Mr. Levy, for example, at different times did not think recusal was the wisest course of action but I cannot tell you what his ultimate position was. Senator BRYAN. But by the latter part of February, at the hearing on the oversight schedule for the 28th, which was really a very crucial time period, by that time you bad a lot of information in terms of the various factors to be considered. Mr. Nussbaum, from what we have learned, was vehemently opposed to recusal. At that point in time, being the latter part of February, and prior to Mr. Altman's testimony, are you aware of anyone else wit in the Administration who opposed recusal? Mr. STEINER. I don't recall, Senator, any conversations specifically about recusal prior to Mr. Altman's testimony. The last time I recall having a conversation with Mr. Altman about the subject of whether he should or should not recuse himself was a substantive contact conversation which was about February 16. In anticipation of the hearing, we had conversations about questions that he might anticipate, but I think, at that point, be decided he was not going to recuse himself, 353 Senator BRYAN. "At that point" being on the 16th of February, did you share with him, being Mr. Altman, your own view? Mr. STEINER. Yes, I did. Senator BRYAN. And that view was? Mr. STEINER. That he should recuse himself. Senator BRYAN. In your diary, you make reference to a tortured day. It's my understanding that tortured day was, your view, at least tortured in part, because of the anguish as to whether to recuse or not to recuse. Is that an accurate characterization? Mr. STEINER. I think that was one of the factors that made it a difficult day, Senator. You may recall that after Mr. Altman's testimony, he was confronted with a number of news articles which commented on this matter and be had conversations with editorial writers who also commented on this matter. So there were a variety of factors at work. Senator BRYAN. So we place your diary entry, the document that we have would indicate that your comments with respect to this part of your diary deal with the time period, February 13 through February 27, 1994. Now, that would be prior, would it not, to the oversight hearing? Mr. STEINER. No, That would be through the oversight bearings, Senator. Senator BRYAN. I believe the hearing was on the 24th. Mr. STEINER. I believe that's correct, Senator. Senator BRYAN. What were the considerations with, respect to recusal? What was being discussed on this tortured day and by whom? Mr. STEINER. I don't recall the specific conversations about recusal on that day. I do recall that,, as I said, articles had appeared, and that we had for a long time considered the recusal issue within a political context, which is to say, were there going to be political appeals or requests for Mr. Altman to recuse himself and would there be allegations about the manner in which he was conducting himself? And, I think, we were eager to prevent any allegations of misconduct. Senator BRYAN, Who was a party to the discussions on this tortured day? Mr. STEINER. Senator, I don't recall any specific conversation. As you know, it was several months ago, and the events become compressed, but Mr. Altman was involved in discussions. I believe Mr. Levy was involved. I believe Mr. Schloss, one of our press people, was involved. I believe Ms. Hanson was involved. I believe Mr. Nye was involved, and there may have been others, Senator, but I just don't recall. Senator BRYAN. Among those people that you recall being there, do you recall what their position was and what advice they gave Mr. Altman?