PEOPLE : Bush Names Martoche to Head Thrift Office

President Bush has named Assistant Treasury Secretary Salvatore R. Martoche as acting director of the Office of Thrift Supervision, the agency that regulates the nation’s savings and loan institutions.

Martoche promised to “provide stability and leadership” to the government’s oversight of the troubled S&L; industry.

The interim appointment fills the vacancy created by the resignation last December of M. Danny Wall, who quit under criticism from members of Congress for his handling of the S&L; crisis in his 2 1/2-year tenure.

Martoche, a former U.S. attorney from Buffalo, was named by Bush to serve “until a new director is in place.”

Administration officials said the search for a permanent successor to Wall is continuing. Sources, who spoke on condition of anonymity, said the Treasury Department planned to forward its recommendation within several days.

Congressional Democrats have been pointing to the Bush Administration’s failure to recruit a permanent successor to Wall as evidence that the S&L; bailout was falling into disarray.

Because the Martoche appointment is an interim one, it does not require Senate confirmation.

When speculation surfaced that Jonathan Fiechter, senior deputy in charge of policy at the agency, might be named as interim director, S&L; industry officials raised questions over the legality of any actions taken by an acting director who was not confirmed by the Senate.

Martoche’s appointment was expected to alleviate that problem because he has already been through the confirmation process in his current Treasury post.

Martoche is currently assistant secretary of the Treasury for enforcement, overseeing the Secret Service, the Customs Service and the agency’s drug-intervention programs.

The Office of Thrift Supervision, formerly known as the Federal Home Loan Bank Board, was extensively overhauled last year as part of the 10-year, $150 billion S&L; rescue legislation.