roger altman house
I called him and said Id be interested in helping him in some form if there was a way to do that, and then one thing let to another and I got involved, not long thereafter, in his campaign, both from a fundraising point of view and from the point of view of economic policy and issue development. I think Bush inspires greater loyalty than Clinton, just does. I think those discussions, including that particular one, in retrospect, had a considerable effect on him. I guess that again leads to the question about the uncertainty and anxiety of a transition period, trying to figure out which person. He gave the best speech I, at least to that point, had ever heard him give, and I think almost everyone in the administration who was in the room felt the same way. Certainly, when he captained it, it was a different party than it had been for the previous 50 years. No. Thats one where the Federal role is much bigger and one of the things we didnt discuss is why the administration did not latch onto that early on, even though the President was on the populist side of reform. Im sure there are lots of aspects of the preparation plan. Well, after the Presidents unveiling and before the war room, this pre-war room effort at selling, how was that coordinated? Hed be speaking someplace and Id be playing some role at the same conference at one of the usual conference locations, and we would briefly renew the acquaintance, but I did not stay, in any organized way, in touch with him. I stay in touch with him. But from the outside, one of the notable departures of that administration, and I think it began very early, was the cordial deference paid toward the Federal Reserve Board. And the next point I want to make is, there was a fateful meeting, like most of these things, very well chronicled now, in Little Rock, up at the transition, the economic team, lasted many hours, very organized meeting in the sense that it had a set of presentations and then a broad discussion. Lloyd Bentsen was the very first person we tried when this whole project started, on the urging also of Clintons people because of his age, and they didnt know at that time that he was as ill as he was. I think it was over two days. In part, there was a sectoral approach. Now John Snow didnt learn that, hed never been there before and so forth and so on, whatever excuse fits him. Thats not particularly my recollection, no. Very, very intensive, one of the most intensive things Ive ever been involved in. But really, not until the spring of 1991 when I began to hear rumblings that he was thinking of running. He said, Its up to you. I came to respect Dole a lot through Bentsen. He doesnt even know about the advent of optical scanners in grocery stores, and that was the theme, that was THE central theme as codified, so to speak, in [James] Carvilles famous comment, its the economy, stupid. And its not the right move to inform a Cabinet officer that his team is Mr. X, Miss Y, and Miss Z. I took a trip out to Oklahoma to visit the district of a Congressman from Oklahoma whose vote we needed, and ultimately I think we got. We had so much going on that Bentsen asked me if I would just, on an interim basis, serve as interim chairman of the RTC. You had made your choice to support him before it was clear that he was going to wow a lot of people in New York. He was not confronted with a grave crisis, but I think history will treat him very well, because essentially. Oh yes, this is not long after the key members of the economic team are chosen. We believed that by maintaining the highest standards of excellence we could create a firm unlike any other in terms of capabilities to advise on highly complex strategic transactions, dedication to our client and our experience and professionalism. But the next day, Monday, I was on a plane to Waco, Texas. I couldnt for the life of me see why that was a problem, but anyway, I went to the White House and told Bernie Nussbaum, the White House Counsel, just how the RTC actually operated in these matters. But in retrospect he basically decided in his simple-minded way that he was going to grind the Soviet Union right into the dust, and he did. Now, it may last five or six more years, it may last 25 more years, I dont know. I left the Treasury about a month later when my successor Frank Newman, who was then Under Secretary for Domestic Finance, was nominated and had been confirmed. There just wasnt a candidate who had the capability to do that. Not too much, though. But its the economy, stupid doesnt communicate a set of priorities within the administration about what steps they will take. During the day two or three people from the administration spoke to KerreyMack McLarty and Leo Panetta spoke to Kerrey. I was often, or at least periodically, talking to members of the administration but not to the President. But in any event, what gets discussed most in the campaign historically may or may not be the first or second major initiative that comes from the new President. By the way, when the three-judge Washington panel that chose Fiske threw him out and replaced him with [Ken] Starr, Starr went back to the beginning and went over the entire thing again and came to the same conclusion. How difficult was it to do what you were doing in an environment where Mario Cuomo was sort of floating around trying to figure out. I didnt feel it because I had a long relationship with Bob Rubin, which had been ten or 12 or 14 years, and Bentsen and Rubin had had their own long relationship and I saw no real problem with everybody relating successfully to each other. By that time we were all being treated very well by the campaign because we were seen as the guys who were there at the beginning. You see people scrambling to monopolize the left. So there were a couple of weeks of high anxiety, maybe more than that, maybe everybody was in a state of anxiety between the election and yes, it wasnt at all clear who the Secretary of Treasury would be. He may have been serving the President, but he hadnt been in public life for all those years, never lost an election, become Chairman of the Senate Finance Committee, didnt become a legend in order to sully his own reputation, as he saw it, over some legislation that he thought was misguided from the first moment. Ive seen it happen so often in business as well as in government. Right around that time I was put in charge of the Treasury transition. Did you have close relations with people in Cuomos operation, because I think, at least in the early stages, there was still a consideration that he might come out? It was excellent. I was in Tokyo, asleep, so I was a bit taken aback. So it was a quick learning experience for Clinton. So I think it was quite smart to be done then. First of all, the actual role of the Deputy Secretary as defined in the Treasury mission statement is to do what the Secretary of the Treasury asks him to. I think thats a wonderful tradition. When you were suggesting Edmund Morris I was thinking. Gene Sperling was in it. There were so many different Japanese Prime Ministers in that period I cant remember which one we had at that moment. You can have half of it, or something to that effect. People who liked Cuomo liked him a lot; people who didnt like him didnt like him at all, and it was about half-and-half. WebNot only are 10% of the U.S. House and Senate Jesuit-trained from Georgetown, but so are many of the world's political leaders, which should have you asking What are they really up to?" But then of course, I went home, my family was away, you walk home, you walk into your house, and its time to watch ESPN [Entertainment and Sports Programming Network] or whatever you do. I dont know who was, and some people say there werent any, but I wasnt, even though I was always described that way, always baffled me. He talked about a middle-class tax cut and, of course getting the economy moving. Is the existence of a war room something. Whether you had disagreements with him or not, or felt warmly or less warmly toward him or not, he gave you the opportunity to do it, whether youre a Cabinet officer or anybody else. He didnt think much of the Btu tax. Web(Studio: Charles Gibson) Earlier interview held with Evercore Partners Roger Altman about the House vote and the market reaction. I was to call Bentsen promptly. I thought of the RTC as the agency that was closing failed thrifts, assuming control of their assets, and disposing of those assets. Those are my exact words. In all aspects? He paid more attention to golf and girls in University. Those carve-outs were all done on a tripartite basis. Ickes arrived for different reasons; that wasnt to try to lend organization to the process. His view was, I want to pick good people and let them do their jobs. Ive read a lot of whats been written about the healthcare plan, its all there. I doubt it. But from their vantage point, thats when they experienced intense partisanship. Its quite a difference and I ascribe it to the fact that she does not look at the world as, or at least in my experience, as solely and only politically. So my wife and I flew down to Little Rock and I met with Clinton for about two hours. Everybody was sitting in a room for the endless hours that have been so widely written about, which was quite a chaotic, disorganized process and not particularly Presidential process. I think it was serious as a political thing, meaning you had three candidates instead of two and of course, the dynamic was different. For example, keeping its currency weak, not taking some of the steps to improve domestic demand such that Japan could become a stronger force for imports into Japan, ironically some of the same issues that are just as present today. Of course that depends on the moment in question. So again, it wasnt all about President Clinton. The President made a decision he was going toand he discussed this during the campaign at lengthbe more aggressive with Japan to have a fairer, more level playing field. Yes, but Mack was entirely averse to confrontation and played a completely backstage role in these things, which is not really what a President needs. It had a very different constituency than the economic plan. So the traditional Democratic field has had in it a few candidates who represent that. Once you get NAFTA behind you, my guess is that there were further discussions at that point about what ought to be next and this is when healthcare becomes a priority. He must have had enough of a political antenna to realize this was going to be a tough call in a Democratic constituency in Pennsylvania or Michigan. But its just one of those periods in Washington when partisanship is at a peak. I was often at the National Economic Council meetings that deliberated on those. It wasnt evident to me the day after New Hampshire that he had recovered from it. But for reasons I dont fully understand, it goes in cycles, and we came into office at a time when an up cycle so to speak on partisanship was asserting itself. He could have just been rhetorically difficult about it and kind of accepted the fact that were steady as she goes on the Cold War, and he didnt. Will policy differences be the reason that candidate X or candidate Y emerges with the nomination? I just know from prior experience that thats the way to do it. Bob Dole. During the preparation would you call that an organized group? Ill never forget that, he was a good guy, a real good old boy, I cant recall his name now, hes not in Congress any longer, but I arrived at the airport and he meets me and he says, Look, just get one thing straight, youre not going to say a word today about guns, nothing. So you can imagine sitting next to Mrs. Clinton at dinner. I want to be sure that there is a clear picture of that because he cant offer it himself. It really wasnt that way. Word comes up, you just say nothing. No, it was not at all. Those characteristics I thought were rather evident upon meeting him just a few times. I just want to make one point. So I watched the Senate vote, also on television, this time in the war room. Well, you know that whole thing turned out to be quite an astonishing fiasco with the ultimate FBI [Federal Bureau of Investigation] raid and the immolation of 80 Branch Davidians. Every imaginable issue arose and Clinton hit all those balls out of the park and it gave the American public a chance to see how astonishingly smart and deep this guy was. Right off the bat in the administration, a group of us were deputized to try to lay the groundwork for a productive summit. It will be differences of style, differences of perception. That was my third or fourth trip, in 93. I mean, there are libraries full of books that have already been written about that. I mean, maybe Reagan was to some degree briefly an anomaly, although he never had the reputation of being an anomaly, and so I wondered if the President, as Commander-In-Chief, also responsible for foreign policy, viewed this particular policy in that light too. So he didnt have the luxury of saying, Lets do it a year from now, as you often do with other things. But Clinton did care quite a bit about it. They just didnt come to the Secretary, to the Chairman of the RTC, no more than investigations being pursued by the Bureau of Alcohol, Tobacco, and Firearms, or the Secret Service or what have you come to the Secretary of the Treasury. Its very difficult to do that during a campaign. So I wasnt sure what was going to happen, but there was no one in the field that was suddenly squashing everyone else including Clinton. So my average day was spent a few blocks from here, working full-tilt on the business responsibilities I had. He knew how every member would vote. So those ideas were developed during the campaign. Am I misremembering, did the President invite Mr. Greenspan, to sit in the gallery next to his wife when he delivered his economic policy. I thought, All right, well get half a loaf. Most of the trade was being handled by what was called the NEC [National Economic Council] deputies, which is the Deputy Secretary level of the NEC. In the early period, there was a lot of discussion of broad strategy, how to create support for deficit reduction as a whole, how to talk about the program, what type of interest groups we needed to particularly work with and work on. Can you tell us how you first got to know Bill Clinton? There were certain others, I cant recall now, but a group of six or eight or nine, and we literally sat around with pieces of paper and drafts and hammered it out. By the time 94 was over, the Congress was in Republican hands. He really enjoyed it, stayed up every night till four in the morning, and believe me, I know that because I was going to his room at three in the morning with these various wordings. My point is, I thought the whole discussion had a considerable impact on Clinton, as did scores of others along the way after that. I think theres a wonderful tradition in American government where the outgoing administration typically does everything it can to assist the incoming one, and that was certainly true with the [Gerald] Ford administration. Phil Gramm, Ill never forget, predicted that it would usher in a new depressionI mean depression, not recession. I think my point is slightly different. We still joke about that today. He did quite well. The only reason I think it worked was Bob Rubin, who had the skill and the temperament to make it work. He managed to remain viable through New Hampshire. But, I can tell youa bit of a digression. But in any event, it hasnt ended with President Clintons leaving. and I said, I just want to serve.Im not going to give you a speech about why I should be Secretary of the Treasury. We knew each other, but we turned out to be the first two to go down and I dont know why that was. But that was fairly brief, though. He just determined each time that what he had to do was get through this chapter and somehow live to fight for the next one and didnt take the longer view. I do have one question about the National Economic Council. In fact, I went out West for vacation and I was interrupted and came back and went to the first of what became endless healthcare meetings. In 1991 it was not organized. Im not the best witness on that because I didnt see it or feel it, but there may well have been. I referred to the Bert Lance affair when I was serving the Clinton administration, and in that case the controller of the currency, who is an independent regulator, was charged with looking into it and delivered a report that ultimately proved to be Bert Lances downfall. Lets face it, NAFTA has worked. Carter had chosen, as you remember, to somehow find a diplomatic solution to that crisis. I follow it pretty closely, and I have a hard time figuring it out. If you think about who are almost universally considered the three or four greatest American Presidents, they all faced enormous crises, of course Lincoln, [George] Washington, FDR [Franklin Delano Roosevelt] and so forth, and Clinton didnt. There was a concern that wed spill all the rest of our blood on NAFTA and have nothing left. She inspired, continues to inspire, fierce loyalty and he doesnt. He got Republican ex-Presidents to sign on, though, as I recall. So I spent a lot of time on healthcare. So Ira was, to some degree, as youve read thousands of times, off in the corner doing this whole plan. I also think Clinton knew he was going to go up against some of his oldest allies, whether it was Marian Wright Edelman, whomever it was, in terms of welfare reform, and was prepared to do it, but wasnt really looking forward to it. Before we come back to this, I want to pose one question and that is about the Presidents style when he was working the phones with members of the House. Im a little too close to this, because Im not sure how history will view it. Well take a break for lunch here in just a minute, but I want to jump track and ask you one set of questions about your own responsibilities within Treasury. That was the all-time low for the dollar. At the end of the lunch he asked me if I would serve as Deputy Secretary and I said I would. I think though, if I can repeat myself once, I finished reading a few months ago a marvelous biography of TR [Theodore Roosevelt], the second volume of Edmund Morris work. For example, Putting People First was reissued, I believe in June of 92. I think Clinton recognized that, by virtue of his being an outsider in Washingtonhe never served in Washingtonhe needed a link to the Congress, a really superb link, of the type that Bentsen afforded, especially since Clintons first priorities were economics.The Senate Finance Committee was going to be, more than any other single place, where the action was. I believe it was a five-year statute of limitations and the expiration date was January 94 or February or something like that. In other words, Clinton believed that he could charm anyone if he wanted to and Bush believes the same thing. One, every morning of course, there was the senior staff meeting at the White House. But its interesting to put it into perspective. No, he doesnt, not in terms of the way I would define close friends, genuine friends. No, I dont remember that effort at all, so it must have been pretty quiet. But you think that by January 20th, this basic division of the fundamental economic policy. Well, that was, in retrospect, the Bill Clinton Show, and he demonstratedit was, I think, very clever in retrospect. Of course we learned quickly that these were really difficult negotiations. Here we are in June 2003 and the election as we all know is November 04, so its 16 months or so The politics of Oklahoma. So I knew we had a problem. You couldnt do that. Was this your first opportunity? No. You can do it through tax increases and then you have to choose the tax, and you can do it through spending reductions and you have to choose the area youre going to focus on. I doubt that youll see that. I mean, theyre all just issuing healthcare plans right now and there are some important differences among them, but 99 percent of the primary voters will not know those differences. It just depended on the size of the concession. WebRoger Altman: Formerly deputy Treasury secretary, Altman resigned Aug. 29, 1994 following revelations he tipped the White House off to criminal referrals made by I said, Yes, I had this one meeting, and told him what it was. The social side of it had almost nothing to do with it. Is this time for patriotism? They especially resented the role that Hillary played. We recommend you to check the complete Roger C. Altman. He could have been all rhetorical about it. Hed been the Governor of New York for quite some time and everyone knew Cuomo and his coterie. Yes, Clinton was gregarious, obviously bright. That was on a Friday evening. But of course Republican support was sought. The hearings ended around the fourth or fifth of August and it was now the seventeenth or something. So that went on with mounting intensity over a series of months after the President had actually laid it out. Its really quite stunning. I recall taking maybe one or two trips with him outside New York, mostly just for my own enjoyment, to see what it was like. I remembered him of course, but I dont think he knew me. I spoke to the Oklahoma state legislature. Whatever was going on on the deck of the Titanic was comparable, but it was absolutely frantic and incredibly dramatic and tense. She herself has expressed regret over them. In fact, it was six months before. WebKathryn Reed Altman and Roger Altman attend State of the Union Dinner at The Re-Opening of the Plaza Hotel Ballroom on January 28, 2008 in New York Roger Altman and Mayor Michael Bloomberg attend THIRTEEN and WLIW 21 Annual Gala Salute at Gotham Hall on April 30, 2007 in New York City. We sat there, the two of us, watching it on television, mostly in silence. I mean, Republicans are opposing it because its tax and spend, the President is upset about it because its Wall Street economics. Then we put on our battle armor and went back into battle. Right now, again, were very far away from even the primaries still, let alone the general election, but right now the most active topic of discussion by the candidates by far is healthcare. We had to be sure Mexico could live with it. Were you involved in discussions at this point about what would be next in the queue for the administration, because there were some other. In business. Two questions, one of which was minor. You were both involved then in student government. It wasnt difficult at all because Cuomo was a polarizing figure. Its the biggest story in Washington, Hillary Clinton, the whole thing. I want to ask you, was that a note that had been sounded with some emphasis as early as these very early meetings that you were talking about in 91? Dont ever let those conversations be public. There was also a very memorable event that was held in the East Room of the White House, and recall that within a week or two of this event, Clintons own position on NAFTA was still up in the air. Anyway, then Secretary Bentsen and I repaired to the little study off the White House, the two of us, just to watch the actual vote. Do you think any of those are due to the sort of pressure. Clinton had talked of course during the campaign about cutting the deficit in half during his first four years. So it could be revived again tomorrow. And it was very effective because a lot of the people who came were opinion makers and he made a tremendous impression. Im not sure it makes entire sense, however, to judge or to assess a Presidents contribution by the standard of those who are given, in effect, a free gift of power to deal with a crisis. I started getting inundated with letters from Congress asking how the RTC intended to handle this, stirred up by this Republican campaign. Ill just go to the highlight reel, but reality is that on the day of the vote, we didnt think that we had the votes. Working on the Hill, traveling? That was quite a bit later. I have always liked Mrs. Clinton and I had a lot of respect for her and do have a lot of respect for her. Last weekend, Roger Altman was back at his ranch in Wyomings Jackson Hole, looking tanned and relaxed, entertaining friends like White House chief economist Because Clinton very shrewdly realized the respective strengths of Bentsen and Rubin and put each in the right job. He did, that was the first State of the Union. The election occurred and about a week later Reagan was getting a haircut in California and he came out of the barbershop. Theyre already heavily taxed, its their money, not the governments money and all of that, and if it works, nobody will remember that I opposed it. But the key revelation was the most stimulative thing we could do for this economy is to induce a monetary response. I mean one of the oldest rules of Presidential management is, take your pain up front. Were there follow-up meetings with Japan that you were involved in after the summit? She wears her heart on her sleeve much more than he does. Fourth, I recall that the economic forecasts for 93 were not very heartening. So, third, economic policy was number one. Were there different views? I have to confess it was the spring of my senior year and I was paying a little more attention to girls and golf than I was to the normal ebb and flow of events on the campus. Its always a mistake to challenge the Federal Reserve. And the difficulty became quickly evident once the program was laid out. So they came in and interviewed him. We came up with a Btu [British thermal unit] tax. I would say it was something like this. We were very explicit. It wasnt trade; trade was not a big issue in the campaign. Yes, because obviously I was seen as somebody who had business credentials to some degree, conservative credentials, by Democratic standards at least. The country needs it, the Democratic Party needs it, I need it. In the end the answer was no, nothing, period. You think that a lot of Republicans who didnt support it would say, Well, theres a little justice in the world because Bush 41 paid the price for having a compromise in 1990 that, along the lines of the 1993 bill, did help restore some fiscal discipline to the U.S. Anyone who does that indeed does not know what he is doing, and its the equivalent of Economic Policy 101. Well, that was just one of the many fatal diseases that this bill had. 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