White House Defends Its Non-Banker S&L; Nominee

The White House today rejected Democratic criticism of its selection of attorney T. Timothy Ryan Jr. to regulate the savings and loan industry, but acknowledged it “had a little trouble” finding a banker who would take the job.

At a confirmation hearing, Democrats on the Senate Banking Committee gave a chilly reception to Ryan, questioning his ethics and lack of experience in banking or savings and loans.

In response, White House Press Secretary Marlin Fitzwater said, “Frankly we’ve had a little trouble finding people in the banking industry who want to take this job.

“And also, frankly, I think it’s not at all certain from the track record from the S&L; industry that that’s the best place to draw on expertise.”

“I think the feeling here is, we need somebody who is a tough enforcer, who knows how to go in there and get things done and clean up this mess and knows how to use the law and use the resources at his command to crack some heads and get things moving,” Fitzwater said.

Ryan, 44, a former senior Labor Department official, now is a private attorney specializing in pension and employee benefit law.

He told senators complaining about his lack of relevant experience that he was surprised when Treasury Department officials approached him about the job about four weeks ago.

Nevertheless, Ryan replied, “Absolutely,” when senators asked if he was fully qualified to direct the Treasury Department’s Office of Thrift Supervision, which supervises 2,600 thrift institutions.

“I am not . . . an absolute expert on the thrift industry. I can tell you, though, that in the last four weeks, I’ve spent an enormous amount of time trying to educate myself,” he said.

Ryan said he is an experienced manager of large organizations, citing his 1981-83 tenure as solicitor of the Labor Department where he managed 600 attorneys working in Washington and 16 field offices.

Despite their misgivings, senators are under intense pressure to confirm Ryan quickly. President Bush nominated him March 22, hoping to blunt a constitutional challenge that has put the Administration’s S&L; bailout program in limbo.

A U.S. district judge in Washington ruled last week that the acting director of the thrift office, Salvatore Martoche, and his predecessor, M. Danny Wall, lacked the constitutional authority to close failed thrifts because they were never confirmed by the Senate.

The Banking Committee could vote on the nomination as soon as its next meeting on April 3.