This is in response to your March 2, 1994 letter. You ask that Roger Altman, Interim Chief Executive Officer (CEO) of the Resolution Trust Corporation (RTC), provide the House Banking, Finance and Urban Affairs Committee with whatever information he may have provided to White House staff regarding Madison.

Arranging such a briefing is not within my purview as Chairman of the Thrift Depositor Protection Oversight Board.

As you know, Mr. Altman has recused himself from Madison-related matters at the RTC. I therefore suggest that you address your request for information to Mr. Jack Ryan, Deputy CEO of the RTC. Thank you for taking the time to share your concerns.

Sincerely,

Lloyd Bentsen
Chairman

Thrift Depositor Protection
Oversight Board

This is in response to your March 2, 1994 letter. You ask that Roger Altman, Interim Chief Executive Officer (CEO) of the Resolution Trust Corporation (RTC), provide the House Banking, Finance and Urban Affairs Committee with whatever information he may have provided to White House staff regarding Madison. Arranging such a briefing is not within my purview as Chairman of the Thrift Depositor Protection Oversight Boards

As you know, Mr. Altman has recused himself from Madison-related matters at the RTC. I therefore suggest that you address your request for information to Mr. Jack Ryan, Deputy CEO of the RTC. Thank you for taking the time to share your concerns.

Attached are questions related to Madison submitted by various congressmen after recent hearings before the Treasury subcommittee of House Appropriations. One group of the attached questions is directed to

Departmental Offices and the other, to the Secret Service. I understand there also are questions directed to the Inspector General, but I don't have those yet. I'll get you copies as soon as I receive them.

Management tells me that answers to such questions are normally due back to the Committee within 2 - 2/2 weeks from the date of the hearing, e.g., here, March 25. Delay in responding could delay the subcommittee's markup of Treasury's 1995 budget request, although the subject matter of the questions seems to undercut any justification for doing that.

I'm getting these to Ed Knight in Detroit, but he may not have a chance to focus on them while he's there. As soon as I have his views, or next week when he returns, we should meet to discuss how to handle these questions.

KENNETH R. SCHMALZBACH ASSISTANT GENERAL COUNSEL

ADMINISTRATIVE & GENERAL LAW

MAIN TREASURY ROOM 1410 622-0450/FAX 622-1176

QUESTIONS FOR MR. LIGHTFOOT
MARCH 8, 1994

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FOR SECRETARY BENTSEN

1. SINCE YOUR STATEMENT INDICATES THAT OVER 40 PERCENT OF YOUR
MAIL HAS BEEN ABOUT CRIME AND LAW ENFORCEMENT INITIATIVES, I'M A
LITTLE SURPRISED THAT YOU WERE WILLING TO GO ALONG WITH CUTS IN
LAW ENFORCEMENT FTES IN TREASURY'S BUREAUS. IF CRIME IS SUCH A
HIGHER PRIORITY, WHY CUT THOSE NECESSARY PERSONNEL?

2. YOU HAVE PROPOSED A NUMBER OF NEW USER FEES FOR TREASURY
BUREAUS. I'M SURE IT'S NO SECRET I AM NOT A FAN OF INCREASING
USER FEES. WHAT WILL YOU DO IF CONGRESS DOES NOT AUTHORIZE THESE
INCREASED FEES?

3. YOUR ATF PROPOSALS TO DRAMATICALLY REDUCE THE NUMBER OF
FEDERAL FIREARMS LICENSEES WOULD, IT APPEARS, LARGELY CUT OUT THE
SMALLER DEALERS-- THOSE WHO CANNOT AFFORD THE $600 FEE. DO YOU
BELIEVE SMALLER DEALERS OR LARGER DEALERS ARE MORE LIKELY TO BE
THE SOURCE OF FIREARMS USED IN THE COMMISSION OF VIOLENT CRIMES?
ABOUT WHITE HOUSE ETHICS VIOLATIONS:

1. DID EITHER YOU, OR DEPUTY GENERAL COUNSEL DENNIS FOREMAN, WHO
I UNDERSTAND IS TREASURY'S CHIEF ETHICS OFFICER, RECEIVE ADVANCE
NOTIFICATION OF MEETINGS WHICH TOOK PLACE BETWEEN TREASURY
DEPARTMENT OFFICIALS AND WHITE HOUSE OFFICIALS REGARDING THE
WHITEWATER INVESTIGATION?

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IF NOT, WHY NOT?

WHEN DID YOU, OR DEPUTY GENERAL COUNSEL FOREMAN, FIRST
RECEIVE NOTIFICATION THAT THESE MEETINGS HAD TAKEN PLACE?

4. I FIND IT AMAZING THAT SUCH MEETINGS WOULD NOT RAISE ETHICAL
QUESTIONS, PARTICULARLY IN LIGHT OF THE MEMO ISSUED LAST YEAR BY
THE WHITE HOUSE FOLLOWING THE TRAVEL OFFICE INCIDENT, WHICH
CAUTIONED ADMINISTRATION OFFICIALS AGAINST MEETING WITH
REGULATORY AGENCIES INVESTIGATING, OR ABOUT TO UNDERTAKE AN
INVESTIGATION, OF THE AGENCY IN QUESTION. WHY WERE YOU AND
DEPUTY GENERAL COUNSEL FOREMAN NOT GIVEN ADVANCE NOTIFICATION,
PARTICULARLY IF MR. FOREMAN IS TREASURY'S CHIEF ETHICS OFFICER?

5. IF YOU CANNOT COMMENT ABOUT THIS MATTER, WHEN DO YOU EXPECT
THE OFFICE OF GOVERNMENT ETHICS TO REPORT BACK TO YOU ON THIS
MATTER?

The Honorable Frank R. Wolf

Treasury, Postal and General Government Appropriations
Questions for Secretary Bentsen

WHITE HOUSE/TREASURY MEETINGS ON MADISON-
WHITEWATER

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Last Friday I requested that your Treasury Inspector General
conduct an investigation of the recent meetings of Treasury officials
with the White House. Yesterday I was informed that in contacting
the special counsel regarding this matter, the IG's office was told not
to proceed with their investigation while the special counsel's
investigation is addressing this matter.

What is your understanding of the status of the OGE
investigation that you requested in light of the subpoenas issued
by Special Counsel Fiske? Will their investigation continue and
will they also be asked to discontinue any action while the
special counsel pursues this matter?

Why did you choose to ask the Office of Government Ethics to
review this matter rather than your own Treasury IG?

Were you aware that the Office of Government Ethics does not
conduct investigations? Did you know that they actually only
review the investigations of other agencies which in this case
would be the White House?

Did you know that in this case an OGE investigation would
consist of the White House Counsel's office investigating itself
and then the OGE subsequently reviewing this investigation?

Were you aware of Congressman Leach's February 3, 1994 letter to
Mr. Altman asking him to recuse himself from RTC matters? It was

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Did you discuss this matter with Mr. Altman at that time?

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Were you aware of Mr. Altman's letter last year
recommending against extension of the statute of limitations for

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