August 2, 1994 - Part 5
August 2, 1994 - Part 5
(16:00:39) Secretary Bentsen asked me to assume this position until a permanent CEO was nominated and confirmed. As others will attest I neither sought nor wanted this assignment, but I accepted it because there was no one else. And during the discussions about my appointment, there was never any mention by anyone of Madison Guaranty. In June of last year we submitted a nomination for permanent Chairperson of the RTC. Our expectation was that he would be promptly confirmed, and I could leave the agency. Our nominee was a Republican, and an active one. He was well qualified for this position and the Administration supported his nomination throughout the congressional session, but the nomination was not taken up by the Senate. After Congress completed its work last fall, be withdrew his name from further consideration. Let me make an observation, if I may, about this situation. The Administration nominated an active Republican for the top RTC job. That is not consistent with trying to exert undue control over the agency or any of its investigations. When I became RTC Chairman, the agency was managed on a day-to- day basis by its two senior vice presidents, Bill Roelle and Lamar Kelly. Almost all members of the RTC staff reported to one or the other. These two men were appointees of Mr. Casey, who in turn had been appointed by President Bush. They were thoroughly professional and they were retained throughout all of 1993. Each then left at his own initiative to rejoin the FDIC. Retaining the two senior vice presidents whom we inherited is also not consistent with trying to exert political control over the agency. Moreover, these two individuals bad no motivation to show favoritism on Madison Guaranty, and I do not believe that they did so, During my tenure at the RTC, I was also serving as Deputy Secretary of the Treasury. In that role, I was deeply involved in policy initiatives ranging from passage of the President's economic plan to cochairing the U.S.-Japan framework negotiations. These responsibilities permitted me limited time for RTC matters. My involvement there typically related to broad public issues, like the long struggle last year to pass the RTC Completion Act. At no time, Mr. Chairman, did I ever ask to be briefed, nor was I briefed, on any investigation or the status or the outlook for any case, not once. My role was to provide general oversight at twice 408 senior staff meetings. These involved 8 to 10 RTC officials, and they were the only RTC employees with whom I ever had any personal contact of any kind. Last fall, Bill Roelle or Jean Hanson or both, advised me because of impending publicity, that the RTC was considering referring the Madison matter to the Justice Department for criminal investigation, and that the referral could mention the President and First Lady in some capacity. I had never asked to be involved in Madison son-related matters or any other RTC investigation. Indeed, until that time, I had known nothing at 11 about Madison except through the press. And, as I said. I believe they advised me because publicity was imminent. I was also advised that such referral decisions are typically made at the regional office level. I responded by saying that this referral decision should be made in exactly the same fashion as in any other case. If that meant the regional office level, then that's where the decision should be made. There were no further conversations with me on that subject. ultimately learned through the press that the case indeed had been referred to the Justice Department.