I am writing in reference to the House Banking Committee's statutorily mandated, semi-annual RTC Oversight Hearings which are scheduled for the end of March. As you know, a major area of oversight at these hearings will be the failure and resolution of Madison Guaranty Savings and Loan, Little Rock, Arkansas. Madison was taken over by federal regulators in March of 1989 and resolved by the Resolution Trust Corporation (RTC) in November, 1990.

As ranking Member of the House Banking Committee, I request that the RTC provide the Committee with access to all documents related to madison and its subsidiaries. Members of the Committee will need access to this material to prepare for the upcoming hearings and to perform their ongoing oversight responsibilities. (As I am sure you are aware, documents provided to the Ranking Member are available to the Committee as a whole under the Committee rules.) The documents requested would include, but not be limited to, administrative files, examination reports, interoffice memorandum, notes and minutes of meetings (including telephonic meetings), correspondence, electronic mail, and agreements the RTC entered into with private sector contractors during the resolution of Madison. In addition to documents in possession at RTCWashington, I request access to all documents related to Madison held at RTC field offices. Furthermore, please provide the names and titles of all RTC employees involved with the disposition of Madison.

Please have your staff contact Joe Seidel at (202)226-3241 or Mike McGarry at (202)225-2258 to discuss arrangements to review the aforementioned documents as soon as possible. As you are aware, I have previously requested access to these documents for use in performing other

Mr. Ryan Page Two

March 8, 1994

Committee functions. My final letter concerning that request, was forwarded yesterday, March 7, 1994. If the agency decides to comply with that request, we will, of course, consider this request satisfied as well.

You have recently received letters from Congressman Jin Leach requesting access to all documents you possess concerning Madison Guaranty Savings and Loan and its subsidiaries. The March 8, 1994 letter states that, "Members of the Committee will need access to this material to prepare for the upcoming (RTC oversight; hearings and to perform their ongoing oversight responsibilities."

This letter is to inform you that the Banking Committee is not conducting an investigation of Madison Guaranty Savings and Loan or related matters at this time. Kr. Leach's requests do not constitute a Rule X or Rule XI investigation under the House Rules. A hearing does not provide the basis for a member of Congress to obtain documents to which he or she is not otherwise entitled. I will request any information needed by the Committee in order to prepare for any Thrift Depositor Protection Board Oversight hearings pursuant to section 21A(k) (6) of the FHLB Act and will make it available to members of the Committee, as appropriate.

I trust that you will give Congressman Leach's requests the consideration they merit and extend to him the same courtesies you would extend to any member of Congress.

You have recently received letters from Congressman Jin Leach requesting ooess to all documents you possess concerning Madison Cuaranty Savings and Loan and its subsidiaries. The March 8, 1994 letter states that, "Members of the Committee will need access to this material to prepare for the upcoming (RTC oversight] hearings and to perform their ongoing oversight responsibilities."

This letter is to inform you that the Banking Committee is not conducting an investigation of Madison Guaranty Savings and Loan or related matters at this time. Mr. Leach's requests do not constitute & Rule X or Rule XI investigation under the House Rules. A hearing does not provide the basis for a member of Congress to obtain documents to which he or she is not otherwise entitled. I will request any information needed by the Committee in order to prepare for any Thrift Depositor Protection Board Oversight hearings pursuant to section 21A (k) (6) of the PHLB Act and will make it available to members of the Committee, as appropriate.

I trust that you will give Congressman Leach's requests the consideration they merit and extend to him the same courtesies you would extend to any member of Congress.

cerely,

Henry mus

Juzele

Hakry B. Gonzalo
Chairman

am writing in response to your letters of March 7 and 8, 1994. Both letters reiterate your earlier requests for documents related to Madison Guaranty Savings and Loan and its subsidiaries that are in the possession of the Office of Thrift Supervision (OTS).

Over the past three months, you and I have exchanged several letters regarding these requests, and our staffs have had extensive discussions. This agency has attempted to be as responsive as it can, consistent with applicable lav and the established policy of the banking agencies regarding the release of confidential information. I regret that the results have not been satisfactory to you.

The principal issue on which I believe we disagree is whether it is appropriate to provide confidential supervisory and examination materials, which contain sensitive information concerning insured institutions, to a Member of the House of Representatives in the absence of a request from the Banking Committee or its Chairman. Chairman Gonzalez has informed us in a March 10 letter that your requests do not constitute a Rule I or Rule II investigation under House Rules.

It is the longstanding policy of OTS and the other banking agencies not to release such materials, except under very limited circumstances. As I mentioned in an earlier letter, there are two reasons for this. First, the confidential nature of the examination process facilitates the free flow of information between savings institutions and examiners. Second, examiners are encouraged to express freely their conclusions to their supervisors about examined institutions, and the confidential nature of the reports permits them to do so. As the beads of the banking and thrift agencies said in a joint letter dated July 30, 1991, on this issue, "[cloncern that examination reports might be publicly released at some time in the future vould inhibit candid discussion in the examination report of an institution's problems and would lead depository institutions to deny or rationalize identified problems rather than admit and correct

thea."