- 2 Madison Guaranty Savings & Loan Association of Little Rock, Arkansas ("Madison Guaranty") from Defendants, but they have declined to produce any such documents other than those available to the general public pursuant to the Freedom of Information Act. Madison Guaranty, which failed at a cost to taxpayers of approximately $67 million, has come under intense scrutiny in recent months because of potential conflicts of interest and alleged diversion of funds for political or other improper purposes. Allegations have also been raised concerning regulatory delays in closing Madison Guaranty. Based upon these and other alleged irregularities, both the Senate and the House of Representatives have voted to investigate and hold hearings regarding Madison Guaranty. Moreover, the Federal Home Loan Bank Act, as amended by the Financial Institutions Reform and Recovery Act ("FIRREA"), requires the Committee to hold an oversight hearing within thirty (30) days of receiving each semi-annual report from the RTC. 12 U.S.C. §1441a(k))6). The RTC's most recent semi-annual report was submitted on April 29, 1994; the statutorily mandated hearing must therefore occur no later than May 31, 1994. The status of the RTC's investigation into the circumstances surrounding the failure of Madison Guaranty will be a subject of that hearing." Defendants have refused to make available the requested documents on the ground that only the majority party in Congress -- which also controls 1/ Although the Chairman of the Committee unilaterally cancelled the required hearing on the RTC's November 1, 1993 semi-annual report, Plaintiff is confident that the Committee will comply with the law and hold hearings on the RTC's most recent report. - 3 Defendants -- is entitled to request such documents. Not only does Defendants' position depart from their well-settled custom of cooperating with the Ranking Minority Member, it also neglects the obligation of the Ranking Minority Member to fulfill his oversight responsibilities even when senior Administration officials are implicated in wrongdoing. Therefore, immediate access to the requested documents is essential for the proper performance by Plaintiff of his oversight responsibilities pursuant to FIRREA and House Resolution No. 394. In this action, Plaintiff seeks the documents pursuant to the Freedom of Information Act, 5 U.S.C. § 552(b) ("FOIA"), the Administrative Procedure Act, 5 U.S.C. § 706 ("APA"), and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1441a(k). Accordingly, Plaintiff respectfully urges this Court to enter the briefing schedule set forth in the attached proposed Order so that this matter may be resolved as promptly as possible. The proposed briefing schedule is as follows: - 4 This schedule recognizes the urgency of Plaintiff's request. It also takes into account that Plaintiff has been seeking these documents for six months, and Defendants are fully aware of Plaintiff's claims. In view of the important public interests at issue, prompt resolution of this matter is, we respectfully submit, imperative. CONCLUSION For the reasons previously stated, Plaintiff James A. Leach respectfully urges this Court to enter the proposed Order setting forth an expedited briefing schedule for resolution of this case. DATED: May 11, 1994 Respectfully submitted, Buy & Buny Bobby R. Burchfield (D.C. Bar No. 289124) Jackson R. Sharman III (D.C. Bar No. 428799) 1201 Pennsylvania Avenue, N.W. Washington, D.C. 20044 Attorneys for the Plaintiff |