[Congressional Record Volume 140, Number 6 (Tuesday, February 1, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 1, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      MADISON GUARANTY/WHITEWATER

  Mr. D'AMATO. Mr. President, let me thank my colleague from 
Massachusetts and assure my colleagues that it is not my intent to hold 
up this bill. It is my intent, Mr. President, to address a matter that 
I believe is vitally important.
  I rise today to address an issue that becomes more urgent with each 
passing hour. Just like sand slipping through the hourglass, the 
statute of limitations on civil enforcement actions relating to Madison 
Guaranty/Whitewater has almost run out. One of the key pieces of the 
Whitewater puzzle is Madison Guaranty, the savings and loan that James 
McDougal ran--or more aptly, ran into the ground--until he was finally 
forced out by the regulators in 1986.
  I rise today because the statute of limitations on civil misconduct 
that occurred at Madison Guaranty will run out this month. Any first-
year law student can tell you that once the statute of limitations runs 
out, the RTC is out of time, and any wrongdoers will be beyond the 
reach of the law, safe from civil law enforcement due to a 
technicality. But the bottom line is not that the RTC will be out of 
time. It is this: The American people and the American taxpayers who 
bailed out the depositors of Madison and the other S&L's will be out of 
luck and out of pocket millions and millions of dollars.
  If the statute of limitations is allowed to run out, there will be no 
civil suit to help further justice. There will be no suit to help 
recover taxpayer money that was used to help Madison's depositors. If 
the statute of limitations runs out, no lawsuit can be brought against 
anyone no matter how fraudulent their misconduct was, and regardless of 
whether they may have helped to bring about the collapse of Madison and 
the loss to taxpayers.
  Mr. President, we all know that special counsel, Robert Fiske, will 
do a thorough and professional job as it relates to reviewing the 
Whitewater case. But that is from a criminal standpoint. We are not 
talking about criminal action here. We are not talking about impeding 
the special counsel's investigation. We are concerned that there is no 
apparent investigation into the civil misconduct currently taking place 
at the RTC.
  We would like to know that if an investigation is ongoing, civil 
enforcement action against knowing wrongdoers will not be blocked by 
the expiration of the statute of limitations. This Senator has reason 
to wonder about the good-faith efforts of the RTC or wonder what they 
are doing at all. It has been 3 weeks now since we asked them what they 
are doing with respect to the statute of limitations, and what kind of 
investigation they are undertaking. When does the statute of 
limitations run out?
  Last week, after sending a letter on January 25 to the RTC, they told 
us by phone, ``Well, we think the statute may run out as early as 
February 28.'' That is this month--we have 27 days to go. The RTC 
promised that that they would confirm this by way of letter. That was 
on Thursday. The letter has not come. It did not come on Thursday, 
Friday, or over the weekend, and it has not come yet today.
  What are we supposed to believe? Congress cannot allow this to 
happen. It would be a travesty of justice and a betrayal of the basic 
American concept of fair play.
  Mr. President, I want to state emphatically that this result does not 
have to happen. We can keep it from happening. It can be avoided. That 
is why, several weeks ago, my colleagues and I called on the Attorney 
General and the RTC to seek voluntary agreements to extend the statute 
of limitations with respect to those who might be involved in the 
Madison situation. By obtaining voluntary agreements, agreements that 
stay the statute from running, the RTC would gain valuable time to 
determine the merits of allegations that continue to arise with respect 
to McDougal's crumbled financial empire and the tangled web of 
financial relationships that surround Madison and Whitewater.
  Mr. President, the clock is ticking. This stay of the statute of 
limitations by RTC has been undertaken in many other cases. This is not 
something new. It is not something novel.
  After much hemming and hawing, the RTC has tentatively stated that 
the clock runs out on February 28, leaving less than 4 weeks for the 
RTC to act. We cannot be certain, however, because the RTC has so far 
refused to respond to the repeated requests from myself and my 
colleagues for specific information about the statute of limitations.
  This very matter was raised in the Banking Committee this morning. 
Chairman Riegle joined me in demanding a response from the RTC. I want 
to acknowledge his assistance.
  In addition, the RTC has not said whether it is conducting an 
investigation, how far along it is, if they are still investigating the 
matter, or whether one has been completed.
  I believe we are entitled to these facts. Congress and the American 
people have a right to know and have this information.
  If the RTC has not finished the investigation, I think it is 
important to know how much time they will need to conclude it.
  Whatever the case, the RTC should immediately seek voluntary 
agreements to stop the clock and assure that there is time for a 
thorough, impartial investigation of the facts and an opportunity for 
civil lawsuits, if necessary.
  Right now, the RTC thinks the statute of limitations will run out on 
February 28 but cannot tell us what they will do about it.
  A thorough investigation takes a lot of time. The clock is running, 
and time is running out. That is why I have brought to the floor this 
calendar, and I will continue to bring this calendar to the floor, 
every day if need be, so that everyone will be aware that the time is 
slipping away. There may be as few as 27 days left. Now is February 1. 
We are talking about time possibly running out February 28.
  Mr. President, the RTC has an obligation to respond to the Congress.
  As I said earlier, the RTC has not been very cooperative in providing 
information despite written requests and numerous meetings. For an 
agency that Congress just funded with $18 billion of taxpayers' money 
to be so unresponsive is to me an unparalleled act of arrogance--maybe 
more than arrogance; maybe it is a coverup by the RTC. It is 
inexcusable behavior, and it cannot be permitted.
  While I am hopeful that Chairman Riegle's support earlier today will 
result in a written response concerning the statute of limitations, I 
believe that the RTC must be brought before the Banking Committee 
without delay.
  Accordingly, with the other Republican committee members, I will make 
a formal request to Chairman Riegle to convene a hearing with the RTC 
oversight board immediately. The committee has not had such a hearing 
since March of last year, even though the RTC board is required to make 
semiannual appearances before the committee. This hearing will give the 
Banking Committee an opportunity to question officials who oversee the 
RTC about this Government agency and its activities concerning 
Whitewater and Madison.
  Mr. President, I do not know how many people recognize exactly what 
is taking place. As you can see, there are 27 days, and in 27 days, the 
statute of limitations runs out. If there was wrongdoing, any knowing 
misconduct that resulted in taxpayers' losses--and I do not know that 
to be fact, but we continue to hear these allegations--people have a 
right to know.
  You cannot sweep this under the rug, and to date we have been getting 
a bureaucratic stonewalling from the RTC.
  This Senator does not know whether or not taxpayers' moneys were 
improperly used by Whitewater, or whether or not moneys went to 
Whitewater from Madison that should not have. I do not know. But it 
seems to me that we have a right to know what the RTC is doing. We have 
a right to know when the statute of limitations on civil liability will 
toll, and particularly if we are talking about a period of 27 days.
  So I hope that we will get an answer today, and depending upon 
whether we get an appropriate answer and response as it relates to what 
matters are really being undertaken, I may continue to come to the 
floor every day and mark away another day, to demonstrate that time is 
running out. Time is running out on getting the truth and getting the 
facts for the American people.
  Mr. President, I yield the floor.
  Mr. President, might I ask how much time have I taken?
  The PRESIDING OFFICER. The Senator has approximately 10 minutes 
remaining.
  Mr. D'AMATO. So I used approximately 10 minutes.
  The PRESIDING OFFICER. The Senator is correct.
  Mr. D'AMATO. I take this opportunity to express to my friend from 
Massachusetts that I did not intend to inordinately delay the 
proceedings. I hope that I did not inconvenience my colleagues. It was 
simply my intent to have an opportunity to put this message before this 
body and the American people at a reasonable time because I think it is 
a serious message.
  I yield the floor and I thank my colleagues.
  The PRESIDING OFFICER. The Senator from Massachusetts.
  Mr. KERRY. I thank the Senator from New York. As the Senator from New 
York agreed earlier, he had originally asked for an hour, which we 
backed off to a half hour and then to 20 minutes, and he has spoken for 
10.
  I am extremely appreciative to the Senator for doing that. I think it 
has helped us immeasurably, and I thank him.
  The PRESIDING OFFICER. The Senator from Arkansas [Mr. Pryor] is 
recognized.
  Mr. PRYOR. Mr. President, I thank my distinguished friend from 
Massachusetts, the manager of the pending business before the Senate.
  Mr. President, I am going to take only 2 or 3 moments in response to 
my colleague and friend from New York.
  One, the matter that is expressed with the RTC--and I think the 
Senator is the ranking member of the Banking Committee in the Senate--
is a matter which is legitimately between the Senator from New York and 
the RTC.
  Second, it is my hope that the RTC will immediately forthwith supply 
the Senator from New York with whatever information he needs, because I 
know that this administration is going to be working in good faith, in 
a good-faith effort, to let the American people know everything there 
is to know about the issue known as Whitewater.
  In fact, it was on January 12, after calls from that side of the 
aisle, I might say, that a special prosecutor be named, that our 
President informed Janet Reno that she was to appoint a special 
prosecutor for the Whitewater issue and, quoting the distinguished 
minority leader on the other side, and I think I can quote exactly, 
``This is exactly what we asked for.''
  But once this special prosecutor was named, then other requests were 
made for a special committee or a select committee of the Senate and 
the House to investigate this whole proposition.
  Mr. President, finally, even the distinguished minority leader on the 
House side, the Honorable Bob Michel, said, ``No, we don't think we 
need this.''
  Mr. President, I can assure my colleagues and especially the Senator 
from New York that this administration is going forward with an 
independent counsel. It is exactly what our friends on the other side 
have asked. And I might say that I have total confidence in Mr. Fiske, 
in his ability and his commitment to carry forward not only the letter 
but also the spirit of this investigation.
  We might also state, Mr. President, that one of the reasons Mr. 
Fiske, I think, was chosen for this challenge ahead and this task 
before him and his staff that is now being assembled is because of his 
independence. He is certainly one who has not favored Democrats. He has 
basically favored the other side of the aisle with regard to campaign 
contributions. That is a point between him and the other political 
party.
  But, in fact, as I quote the distinguished Senator from New York [Mr. 
D'Amato]:

        Bob Fiske is uniquely qualified for this position. He is a 
     man of uncompromising integrity. He will unearth the truth 
     for the American people.

  I think that is what we need to have done, the unearthing of the 
truth, the allowing of the sunshine to shine into this whole situation, 
Mr. President, so that we may all know the facts.
  In fact, that is what we are about. That is what we are after. We are 
after the same thing.
  So, therefore, Mr. President, I will not consume any additional time 
of the Senate. But I would warn my colleagues that in the coming days 
ahead we are going to see a lot of politics about this issue. What we 
need to seek is the truth. We need to seek the truth as we pursue this 
matter. We need to seek justice as we pursue this matter.
  But, Mr. President, I hope we will lay politics to rest in this issue 
because of the appointment of an extremely independent counsel to 
manage this case in the weeks and the months ahead.
  Mr. President, I yield the floor.

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