The Political Interest Caught in the Web

By Michael Kramer

The press routinely describes him as a "central figure" in the scandal. "He should be fired," says Republican Senator Al D'Amato. Or at least put "out of the picture" on an unpaid leave of absence, said Republican Senate Leader Bob Dole last Friday. The target of these attacks is Deputy Treasury Secretary Roger Altman, the latest Clinton Administration official caught in the Whitewater affair's web of fact and innuendo.

Political trouble threatens all in its path indiscriminately. Public officials served with subpoenas suffer tarnished reputations no matter the ultimate result -- which is why distinctions should be drawn. Where does Altman fit?

With impressive government experience already behind him, Altman probably felt confident that he knew the rules of the game when he joined Clinton last year. As Jimmy Carter's Assistant Treasury Secretary, Altman helped engineer ) the Chrysler bailout. Thanks to his talent and good luck (he and Clinton became friends in college), Altman is now Lloyd Bentsen's understudy. He is also acting head of the Resolution Trust Corporation, an assignment he accepted to fill a temporary vacancy in the RTC's chairmanship. This is the chore that has sullied him.

The job is particularly sensitive because the agency is trying to recapture money lost from failed savings and loans like Madison Guaranty of Little Rock, the institution with ties to the Clintons' hapless Whitewater Development Corp. As a result of Altman's congressional testimony, the public now knows that Treasury officials held three meetings with White House aides to discuss the RTC's Madison investigation. Administration officials confirm that Altman didn't know about the first two. Those became public after Altman acknowledged that he himself called the third for last Feb. 2, a session he describes as a "brief heads-up" designed to tell the White House what procedures the RTC would follow before the statute of limitations on potential lawsuits involving Madison expired at the end of that month. (Congress extended the statute's deadline shortly thereafter.) Altman has sworn that he didn't communicate anything about the substance of the RTC's Madison inquiry. He couldn't have done so, he says, because he has purposely avoided knowledge of the RTC's cases. So far, no evidence disputes his contention.

What's most significant in weighing Altman's culpability is his actions before the White House meeting. Unlike those involved in the other White House sessions, Altman sought to avoid any impropriety, or even its appearance, by clearing his meeting in advance with Treasury's ethics office. The question: Would it be proper to convey the innocuous facts regarding the statute of limitations -- facts that had already been provided to inquiring congressional staff members? Assured there was no problem, Altman proceeded.

On Feb. 24, Altman told Congress about his Feb. 2 meeting. Republicans responded predictably, charging improper conduct. On the following day, Altman recused himself from any further RTC decisions involving Madison, even though Treasury and RTC ethics officials say he had no legal obligation to do so. Unsubstantiated reports allege that Altman sought the advice of White House aides before his recusal. He denies that charge, and Administration officials support him.

Where does Altman stand now? Under a cloud. Too few news reports mention that Altman's meeting was cleared by Treasury's ethics office; too many critics ignore his admission that despite such clearance, the meeting should not have occurred. So, fault Altman for political naivete but, unless new information surfaces, not for venality. A lot about Whitewater smells. Altman doesn't.