senior management of stories we believe reporters will eventually run with. Altman is Interim CEO and as long as he serves in that capacity it is my job to inform him of media activities. Schloss said he would get a memo rolling that would give me instructions from Altman. Firm and Hillary Clinton excluded following SueSc 15733 ABC plans to run their story tonight regarding the alleged request to you from Roger Altman to brief the President's private lawyers on Madison related matters. I mentioned to you earlier that the reporter on this claims that ABC has spoken with Altman on this on a "background" basis and claims to have beer told by Roger that you could "clear up any misunderstanding" about what he intended regarding this alleged request. ABC now claims that they have this request confirmed by another source and will run with the story tonight. They would like to interview you on this. However, absent agreement to an interview, they will say that you, through a spokesman, said that Altman, the CEO, is your client and as such any conversations are protected by attorney client privilege. I told them I would prefer they not use that phrasing and suggested instead that they say you believe as general counsel you feel any conversations you may have with RTC officials relate to the RTC's business and would be inappropriate for you to discuss with the press. They prefer the attorney/client privilege soundbite. If you would like to talk with them, now is the time. Arim Rosten is at 887-7300. I would like to know if you call. If you want me to try for another response, let me know. I have suggested, as I have in the past, that if they believe such a conversation took place, the person to talk to to properly understand intent is the one who allegedly made the request, Roger Altman. HENRY GONZALEZ TEXAS CHAIRMAN STEPHEN HEAL NORTH CAROLINA 3-UCE VENTO MINNESOTA FLOTO FLARE NEW YORK <WESI MFUME MARYLAND MAXINE WATERS CALIFORNIA BILL ORTON UTAM JIM BACCHUS FLORIDA HERBERT C KLEIN NEW JERSEY CAROLYN 8 MALONEY NEW YORK LUIS V GUTIERREZ ILLINOIS LUCILLE ROYBAL ALLARD CALIFORNIA STOIA VELAZQUEZ NEW YORK MELVIN WATT NORTH CAROUNA CALVIN M DOOLEY CALIFORMA ERIC FINGERHUT, OHIO Enclosed is a self explanatory letter to Mr. Bernard Nussbaum et. al. As you know, in my letter of February 3 I had suggested that you recuse yourself from matters pertaining to Madison Guaranty Savings and Loan. Now, however, based upon your meeting with White House officials on this subject, presumably after receipt of my letter, your resignation from all responsibilities at the RTC appears to be the only ethical option in order. Sincerely, Пашнел Jam A. Leach Enclosure HEY GONZALEZ TEXAS CARMAR STEPHEN #LAL NORTH CAROLINA BARNEY FRAME MASSACHUSETTS PAIR & LAILORSEL PENNSYLVANIA JOSEPH LENNEDY MASSACHUSETTS EWEISI INFUR MARYLAND J BACCUS. AORGA CAROLYN MALONEY NEW YORK LURS V GUTTERILE, ILLINOIS LUCILLE ROTBAL ALLARD CALIPORA MELVIN WATT NORTH CAROLINA MAURICE KRICHEY, NEW YORK CALVIM GOOLEY, CALFORSA UNC PINGABAST, CHOD U.S. HOUSE OF REPRESENTATIVES COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS Mr. Bernard Nussbaum ONE HUNDRED THIRD CONGRESS 2129 RAYBURN HOUSE OFFICE BUILDING Counsel to the President Washington, D.C. 20500 Mr. Stephen Potts March 1, 1994 CANTS & LEACH OWN BALL COLLUM FLORIDA DOUG MUTTO MORASEA HOMAS BOGA MUNSTLVAMA ALTED A MECANDLESS CALFOR CRAIG THOMAS WYOMING BOARD SANDLAS. VERMONT On February 3, 1994, I wrote to the Interim CEO of the Resolution Trust Corporation (RTC), Mr. Roger Altman, asking that he seek appropriate counsel as to whether he should recuse himself from matters regarding Madison Guaranty Savings and Loan. As I noted in my February 3 letter to Mr. Altman: "...it would appear ethically questionable for a political appointee of the Department of Treasury to make decisions for an independent federal agency when the President may be implicated in enforcement and civil actions." On February 23 I received a lengthy response to my letter which ended with the following sentence: "I trust this letter fully addresses your concerns" (see attached letters). Regrettably, the letter did not fully address the concerns expressed in my letter of February 3. Moreover, it would appear that the concerns raised in my letter were confirmed when Mr. Altman testified last week before the Senate Banking Committee that he had entered discussions with Page 2 March 1, 1994 the White House on matters affecting the President's potential personal liabilities. While it is dubiously credible to think Mr. Altman would have gone to the White House to discuss only the statute of limitations, in that a mere memo would have sufficed, it bears noting again the irony that it was Mr. Altman who on May 4, 1993, strongly recommended by letter to the Chairman of the House Banking Committee that the statute of limitations for civil lawsuits against SEL wrongdoers not be extended. Mr. Aitman's meeting with White House staff concerning the RTC's actions in the Madison case is an ethical umbrage. Even though Mr. Altman has now decided it proper to recuse himself from the Madison case, the issue at hand is whether his conduct violated federal ethics guidelines or strictures, as promulgated by the RTC. These guidelines are listed under 12 CFR S 1605.7 and include the following: "No employee shall engage in any action, which might result in, or create the appearance of .. ... (b) giving preferential treatment to any person;... (d) losing complete independence or impartiality; (0) (1) making an RTC decision outside official channels; or, adversely affecting the public's confidence in the integrity of the RTC." Also, 12 CFR S 1605.10 states that an RTC "employee may not, directly, or indirectly, use or allow the use of information which is obtained as a result of his or her RTC employment but which is not available to the general public in order to engage in any financial transaction or to further a private interest." In addition, another issue appears to be an abuse of the spirit of 5 U.S.C 3348. In a technical sense, this statute allows the President to name a temporary agency head to fill a vacancy until a nominee is confirmed by the Senate. In the event a nominee is rejected by the Senate or his/her name is withdrawn, 5 U.S.C. 3348 provides that the vacancy may be filled for not more than 120-days by an individual designated by the President. In the case of Mr. Altman's appointment as interim CEO of the RTC, we have a situation where a political appointee of the Treasury Department has served as the head of an independent agency for approximately 13 months. To some, this circumstance leaves the |