May4, 1988 EXTENSIONS OF REMARKS 9903 EXTENSIONS OF REMARKS THE U.S. GOVERNMENT AND fornia Rep. Mervyn Dymally. "It's hard to Maryland: Samuel Lee Dyson, brother of JOBS: THE FAMILY CONNECTION get a position if you come in right off the Rep. Roy Dyson, works as a Capitol Hill po­ street," says Fiti Sunia. Vaaomala Sunia, liceman. He was hired before his brother's another of Fofo Sunia's sons, works as a election, and reports that he has seen at HON. PHILIP M. CRANE Capitol Hill policeman. least one congressional relative walk into a OF ILLINOIS Arizona: Vincent Fabrizio, stepson of Rep. Member's office and "come out in a second IN THE HOUSE OF REPRESENTATIVES Morris Udall is a staff member for the with a job. . . . It is that easy when you House Public Works Committee, chaired know someone." Wednesday, May 4, 1988 until last week by the late Rep. James Massachusetts: Christopher Moakley, Mr. CRANE. Mr. Speaker, we are beginning Howard. Rep. Howard's daughter works on nephew of Rep. John Moakley, worked in to hear more and more in the news about the Interior Committee chaired by Rep. six different temporary congressional jobs Federal jobs being provided to relatives of Udall. between 1982 and 1986, four of them pa­ California: Edith Wilkie, wife of Rep. Don tronage jobs controlled by his uncle. Government executive employees. Currently, Edwards, works as executive director of the Patricia Hamel, niece of Rep. Moakley, the law says that Members may not hire their Arms Control and Foreign Policy Caucus. works as an office manager for Rep. Barney own relatives, but it says nothing about their She worked for Congress before her hus­ Frank. Susan Lewis, the niece of Rep. working for the Federal executive branch or band's election. Frank, works for Rep. Stephen Solarz, al­ for other Members or for Congress itself. Arlene Willis, wife of Rep. Jerry Lewis, though her relationship to Rep. Frank was This is a trend that Congress must become works as his administrative assistant. While not declared on payroll records. She had aware of and possibly investigate. Congress she worked for him before their marriage, previously worked for Sen. , must not allow elected officials to act as an their current relationship was not listed, as whose staff also included John Dukakis, son is required, on monthly payroll records. of Governor . Susan employment agency for their family members. Phyllis Coelho, wife of Rep. Tony Coelho, Lewis's uncle, David Frank, was Rep. So­ This is a dangerous precedent to set. Not only is a secretary in Indiana Rep. Andy Jacobs' larz's press secretary until 1986. is it wrong for elected officials to use their office, where she worked before her mar­ George Early, brother of Rep. Joseph office to provide employment for family mem­ riage. Early, runs the House folding room, which bers, but it also opens the door for conflict of Douglas Boxer, son of Rep. Barbara Boxer handles congressional mail. Folding-room interests to occur between the executive of California, worked last summer for the employees have complained about being branch and the elected branch. House Ways and Means committee. His forced to lend money to supervisors and Recently, an article in the March 31, 1988, sister, Nicole, worked the previous summer work 70-hour weeks without overtime pay. for Rep. Les Aucoin. Mark Early, Rep. Early's son, works for Wall Street Journal entitled "Ursula Meese, Colorado: Janna Hefley, daughter of Rep. Rep. Robert Traxler where he took the and Others" regarding this issue was brought Joel Hefley, worked as a paid intern for place of Dennis Early, the congressman's to my attention. I find it noteworthy because it Rep. James Bunning of Kentucky. nephew. clearly indicates that this family connection Connecticut: John Kennelly, son of Rep. Michigan: Barbara Shaffer, daughter of may be a problem that Members of Congress Barbara Kennelly, worked last summer as a Rep. William Broomfield, works in the will have to deal with in the future. Therefore, clerk for the House postmaster. House clerk's office. I commend my colleagues to read this article: District of Columbia: John Ball, a brother­ David Kildee, son of Rep. Dale Kildee, in-law of Delegate Walter Fauntroy, works worked last summer for the House door­ [From the Wall Street Journal, Mar. 31, in the House doorkeeper's office. keeper. 1988] Florida: Daniel Barton, cousin of Rep. Minnesota: Peter Vento and John Vento, URSULA MEESE, AND OTHERS William Lehman, worked last summer as a sons of Rep. Bruce Vento, both worked last Amid the stories about the two resigned page for the House doorkeeper. summer as congressional clerks. Justice Department officials yesterday, the Mary McGillicuddy, sister of Rep. Connie Missouri: Michelle Clay, daughter of Rep. Washington Post had another story: "Inde­ Mack, worked until last year for Rep. Bar­ William Clay, works as an assistant counsel pendent Counsel Subpoenas Ursula Meese's bara Vucanovich. for the House Judiciary Committee. Job Records." It now develops that Inde­ Hawaii: Andrew Matsunaga, brother of Montana: Griff Williams, son of Rep. Pat­ pendent Counsel James McKay is investi­ Sen. Spark Matsunaga, works as director of rick Williams, worked for the House post­ gating Mrs. Meese's $40,000-a-year job with the Senator's Honolulu office. He began master last summer. the Multiple Sclerosis Society. "According work before current anti-nepotism laws Nevada: George Vucanovich, husband of to sources familiar with McKay's inquiry, were passed. Also, Senator Matsunaga's son­ Rep. Barbara Vucanovich, is a CPA who the independent counsel has been trying to in-law is a Capitol Hill police officer. does financial consulting for three other determine whether the Meeses' close friend, Idaho: Sallianne Stallings, daughter of GOP House members. E. Bob Wallach, in effect helped supple­ Rep. Richard Stallings, worked as a summer New Mexico: Clare Domenici, daughter of ment the Meeses' income by recommending clerk for the House postmaster. Senator Pete Domenici, works as a clerk for Ursula Meese for the jobs." Mrs. Meese's job Illinois: Doyle Evans, brother of Rep. the House postmaster. is matching MS patients with employers. Lane Evans, works in the House doorkeep­ : Robert Power, stepson of Rep. Whatever is going on here, the one thing er's office. Robert Garcia, also works for the House we may fairly conclude is that it is worthy Herman Morris, nephew of Rep. Cardiss postmaster. of investigation. But if it merits the atten­ Collins, worked last summer as a clerk for North Carolina: Stacye Hefner, daughter tion of special prosecutors and reporters, the House doorkeeper. of Rep. W.S. Hefner, works for the House then the town may hold enough such sto­ Rose Marie Lipinski, wife of Rep. William Administration Committee. ries to command the attention of many such Lipinski, works part time for the House Ad­ Anita Jones, daughter of Rep. Walter investigations. Last December, a UPI report­ ministration Committee. Jones, worked for the House Banking Com­ er produced a long story listing 73 relatives Heather Davis, daughter of Rep. Jack mittee until last year. of House and Senate members who have Davis, worked as a paid intern last summer Joan Teague Rose, wife of Rep. Charles worked for Congress in paid jobs since mid- for Rep. Jim Bunning of Kentucky. Rose, works as a staff assistant for a House 1986. By law, members may not hire their Phillip Miller, stepson of Rep. Charles agriculture subcommittee chaired by her own relatives, but the law says nothing Hayes, works for the House postmaster. husband. Mrs. Rose was hired shortly about their working for other Members or Kansas: Rhoda Glickman, wife of Rep. before her marriage. for Congress itself. Here is a partial state­ Dan Glickman, works as executive director Stephen Neal, son of Rep. Stephen Neal, by-state summary, current at the time of of the Congressional Arts Caucus. worked for the House doorkeeper until last UPI's story: Kentucky: Kelly Hubbard, daughter of year. American Samoa: Fiti Sunia, son of Dele­ Rep. Carroll Hubbard, worked as a paid North Dakota: Lucy Calautti, wife of Sen. gate Fofo Sunia, works in the office of Cali- intern last summer for Rep. Les Aucoin. Kent Conrad, works as an executive assist-

e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 9904 EXTENSIONS OF REMARKS May 4, 1988 ant for Rep. Byron Dorgan of North tions and Finance on the issue of expanded there is no public purpose served by author­ Dakota. Ms. Calautti is not listed in payroll bank powers. They make a strong argument izing such securities powers for banking in­ records, as required, as the spouse of a against giving banks the authority to under­ stitutions. The danger inherent in authori­ Member. James Sinner, son of North write and deal in corporate securities. I zation with strong safeguards is that over Dakota Governor George Sinner, aslo works time the banks will use their considerable in Rep. Dorgan's office. wanted to be sure that my colleaguos would lobbying power to whittle away the safe­ Ohio: Helen Rose Ellas, a cousin of Rep. have the opportunity to review this testimony guards. In considering the issue of bank Mary Rose Oakar, works as a secretary for as they consider the bank powers issue. entry into securities activities it is impor­ the House doorkeeper. The testimony follows: tant to distinguish between the conflict of Bert Hammond, son-in-law of Rep. Louis TESTIMONY OF RALPH NADER AND JONATHAN interest problem-which involves injury to Stokes, works for the House Foreign Affairs BROWN public investors and public capital mar­ Committee. Mr. Chairman and members of the Com­ kets-and concerns about bank safety and Oklahoma: Wade Watkins, son of Rep. mittee, we appreciate the opportunity to soundness. Concerns that securities activi­ Wes Watkins, worked last summer for the present our views on the separation of com­ ties may injure banks can be addressed to a House doorkeeper. mercial banking and securities activities. considerable extent by requiring that securi­ Oregon: Leland AuCoin, brother of Rep. Congress should not repeal the provisions ties activities be conducted in a separate Les Aucoin, works for the House clerk's of the Glass-Steagall Act which prohibit bank holding company subsidiary and by office. The congressman's daughter, Stacey banks and bank holding companies from un­ prohibiting all transactions, such as loans, AuCoin, worked last year as a temporary derwriting and dealing in corporate securi­ credit enhancement, or transfers of assets, employee for Rep. Robert Traxler. ties. Specifically, the following securities ac­ between a bank and its securities affiliate. Pennsylvania: Maureen Dinneen, daugh­ tivities should continue to remain off limits S. 1886, the Glass-Steagall repeal legisla­ ter of Rep. Austin Murphy, works as an as­ to banking organizations: tion recently passed by the Senate, contains sistant for Rep. Nick Rahall of West Virgin­ (1) underwriting or dealing in corporate "firewall" provisions that address many of ia, who serves with Rep. Murphy on two debt or equity securities; the bank safety and soundness concerns. subcommittees. (2) sponsorship or investment manage­ Unfortunately, the bill fails to include the Robert Dinneen, Maureen Dinneen's hus­ ment of mutual funds comprised of corpo­ necessary conflict of interest barriers. Its band, works for a House committee on rate debt or equity securities; specific deficiencies can be summarized as which Rep. Murphy, his father-in-law is a (3) underwriting securities collateralized follows. member. The committee also employed by their own loans. (1) The bill would allow a securities affili­ Tanya Rahall, Rep. Rahall's sister, for five Three primary reasons justify retention of ate to underwrite and deal in corporate debt years until 1984. the Glass-Steagall barrier between commer­ securities issued by a firm with which an af­ Kyle Jones Beatty, sister-in-law of Rep. cial banking and these securities activities. filiated bank has a creditor relationship. Peter Kostmayer, works as a secretary for First, commercial bank underwriting and <2> The bill would allow a securities affili­ the House clerk. dealing in corporate securities involves seri­ ate to use confidential information concern­ Joel Secundy, nephew of Rep. William ous conflicts of interest that can injure ing corporate borrowers of its affiliated Gray, worked last summer for the House public investors, undermine the integrity of bank so long as the borrowing firm gave doorkeeper. capital markets, and are not readily con­ consent. It should not be difficult for credi­ South Carolina: Thaddeus Strom, third trolled by any realistically available set of tors to obtain such consent from most bor­ cousin of Sen. Strom Thurmond, works as safeguards. Second, underwriting and deal­ rowers. administrative assistant in Sen. Thurmond's ing in corporate securities constitutes the <3> The bill would generally allow a office. "It's really coincidental that I'm core activity of the securities sector and mutual fund sponsored by a securities affili­ working here," Mr. Strom told UPI. there are broad public policy reasons for ate to purchase corporate debt or equity se­ Rita Hayes, sister of Rep. Butler Derrick, maintaining separate commercial banking curities issued by a firm with which an af­ works as an administrative assistant for and securities sectors. Third, notwithstand­ filiated bank has a creditor relationship. Rep. Elizabeth Patterson of South Carolina. ing the claims of the banking lobby to the The bill does contain a narrow provision Texas: Katherine Brooks, daughter of contrary, the integration of commercial prohibiting the purchase of such securities Rep. Jack Brooks, worked last summer for banking and securities activities is not a pre­ during an underwriting if the proceeds will the House doorkeeper. requisite for preserving the vitality of the be used to retire indebtedness to the affili­ Thomas Leath, son of Rep. Marvin Leath, banking sector or realizing the benefits of ated bank. However, this provision would be worked last summer as a paid intern for financial innovation. difficult to enforce given the fungibility of Rep. Beryl Anthony of Arkansas. money. Kimberly Coleman, daughter of Rep. Ron CONFLICTS OF INTEREST (4) The bill would generally allow a securi­ Coleman, worked last summer for the House The basic conflicts of interest inherent in ties affiliate to underwrite securities that postmaster. commercial bank underwriting and dealing are collateralized by loans made by an affili­ Utah: Scott Hatch, son of Senator Orrin in corporate securities can be summarized as ated bank. The bill does contain a narrow Hatch, works for the Secretary of the follows. provision requiring such securities to be Senate. The Senator's daughter, Wendy, re­ <1> A bank has a creditor interest in a rated by an unaffiliated rating firm. Howev­ cently worked for the House Administrative broad array of corporate borrowers. These er, bond rating firms will hardly have the Committee. interests could easily bias the bank's

19--059 0-89-34 (Pt. 7) 9928 EXTENSIONS OF REMARKS May4, 1988 Labor, Health and Human Services, Labor, Health and Human Services, JUNE 14 and Education, and related agencies. and Education, and related agencies. 10:00 a.m. SD-138 SD-192 Appropriations Energy and Natural Resources Foreign Operations Subcommittee Public Lands, National Parks and Forests JUNE9 To hold hearings on proposed budget es­ Subcommittee 9:00 a.m. timates for fiscal year 1989 for foreign To hold hearings on S. 1967, to provide Veterans' Affairs assistance programs. for the establishment of the Tallgrass To hold hearings on S. 2011, to increase S-126, Capitol Prairie National Preserve in the State the rates of VA compensation for vet­ of Oklahoma. erans with service-connected disabil­ JUNE 16 SD-366 ities and dependency and indemnity 9:00 a.m. 10:00 a.m. compensation for the survivors of cer­ Appropriations Finance tain disabled veterans, S. 1805, to pro­ Foreign Operations Subcommittee To resume hearings on childrens health tect certain pensions and other bene­ To hold hearings on proposed budget es­ care issues. fits of veterans and survivors of veter­ timates for fiscal year 1989 for foreign SD-215 assistance programs. ans who are entitled to damages in the SD-192 case of "In re: 'Agent Orange• Product 9:30 a.m. JUNE7 Liabllty Litigation", and to hold over­ Veterans' Affairs 9:30 a.m. sight hearings on activities of the To hold hearings on S. 2207, to author­ Appropriations Board of Veterans' Appeals, and relat­ ize the Administrator of Veterans' Af­ Labor, Health and Human Services, Edu­ ed matters. fairs to provide assistive simians and cation, and Related Agencies Subcom­ SR-418 dogs to veterans who, by reason of mittee 9:30 a.m. quadriplegia, are entitled to disabllty To hold hearings on proposed budget es­ Appropriations compensation under laws administered timates for fiscal year 1989 for certain Labor, Health and Human Services, Edu­ by the Veterans' Administration, S. programs of the Departments of cation, and Related Agencies Subcom­ 2105, to extend for 4 years the author­ Labor, Health and Human Services, mittee ity of the VA to contract for drug and and Education, and related agencies. To hold hearings on proposed budget es­ alcohol treatment and rehabilitation SD-192 timates for fiscal year 1989 for certain services in halfway houses and other certain community-based facilities, 10:00 a.m. programs of the Departments of and S. 2294, to extend the authority of Appropriations Labor, Health and Human Services, the VA to continue major health-care Foreign Operations Subcommittee and Education, and related agencies. programs, and to revise and clarify VA To hold hearings on proposed budget es­ SD-192 authority to furnish certain health­ timates for fiscal year 1988 for export care benefits, and to enhance VA au­ financing programs. JUNE 10 thority to recruit and retain certain S-126, Capitol 10:00 a.m. health-care personnel. Appropriations SR-418 JUNES Foreign Operations Subcommittee 9:30 a.m. To hold hearings on proposed budget es­ JUNE 24 Appropriations timates for fiscal year 1989 for defense 9:30 a.m. Labor, Health and Human Services, Edu­ security assistance programs. Commerce, Science, and Transportation cation, and Related Agencies Subcom­ S-126, Capitol Foreign Commerce and Tourism Subcom­ mittee mittee To hold hearings on proposed budget es­ To hold hearings on Japanese patent timates for fiscal year 1989 for certain policy. programs of the Departments of SR-253