xament, Docket No. 501 most of the commissions paid by Madison Financial to Madison Estate, which significantly derives all of its business from Madison Financial. retained the LO Many of the sales, which generated these commissions, were Messe. McDougal and Latham cited an April 24, 1985 letter from a кис Let X 3. Madison Marketing is paid for doing all the general advertising for Mr. 1.1cham stated that after February 1986, Madison Marketing became Given the evidence of Madison Marketing's invoices, it is questionable Mr. Latham stated that Madison Marketing made no payments to any Designer's Construction Designer's Construction cerforms construction work on some of the land Interim CEO Altman has asked me to respond to your request for records pertaining to Madison Guaranty Savings and Loan contained in your letter of December 9, 1993. This response also pertains to the memorandum prepared by your staff entitled "Right of a Ranking Minority Member for Access to Agency Records," dated January 14, 1994 (Memorandum). The Memorandum was in response to concerns which RTC staff raised at a meeting with Mr. Joseph Seidel, Minority General Counsel, and other members of your staff, including whether you were making your request in your individual capacity or on behalf of a committee or subcommittee of the Congress. As you may know from our discussions with your staff, the RTC is concerned that disclosure of different categories of information could constitute a waiver of one or more privileges to which the agency is entitled, or, result in the release of personal or corporate financial information in violation of Federal law. At the time we raised these concerns, your staff offered to supply us with a legal memorandum that would show that (1) you as the Ranking Minority Member had authority commensurate to a Committee Chairman's with regard to access to agency information; and (2) regardless of your standing, you had absolute access as a Member of Congress to any agency record. The RTC has reviewed the Memorandum and the relevant law and authority. Despite our desire to cooperate with you, the agency must continue to take the position that a Ranking Minority Member has the authority of an individual Member of Congress and therefore may only obtain information that would be otherwise available to the public pursuant to the Freedom of Information Act. Moreover, the RTC believes that disclosing privileged information to you could raise questions of waiver and could detrimentally affect any further legal actions that may be contemplated regarding Madison. Notwithstanding the different conclusion the RTC has reached on this issue, we will continue to review the status of legal proceedings relating to Madison, and consider whether we can prudently disclose 801 17th Street, N.W. Washington, D.C. 20434 any additional information. We have thoroughly cooperated with your request providing thousands of pages of documents. We have also given your request the highest priority in order to respond in as timely a manner as possible. In the interim, we will continue to work with your staff to make available to you as many records possible within the limitations discussed above. Sincerely, as John E. Ryan 15991 RTC RESOLUTION TRUST CORPORATION Resolving The Crisis February 1, 1994 The Honorable Alfonse M. D'Amato Ranking Minority Member Dear Senator D'Amato: On January 11 and January 25, 1994 you wrote to me concerning the statute of limitations relating to Madison Guaranty Savings and Loan of McCrory, Arkansas ("Madison"). I want to assure you that the Resolution Trust Corporation is conducting a thorough review of the potential civil claims it possesses as a result of the failure of Madison. The RTC is, of course, mindful of the impending February 28 anniversary date of the federal takeover of Madison. If such claims do exist, the RTC will vigorously pursue all appropriate remedies using standard procedures in such cases, which could include seeking agreements to toll the statute of limitations. As you noted, the barriers presented by the expiration of the statute of limitations in many cases have been ameliorated by the extension of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) statutes in the RTC Completion Act (Act). The Act has afforded the RTC an opportunity to investigate further any civil claims which may be asserted against individuals or entities associated with Madison Guaranty for fraud, intentional misconduct resulting in unjust enrichment, or intentional misconduct resulting in substantial loss to the institution. As you know, the RTC's jurisdiction is solely as to civil claims. Any potential criminal matters are within the jurisdiction of the Justice Department. Sincerely, Кекен Roger C. Altman |