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OPENING STATEMENT OVERSIGHT SUBCOMMITTEE
CONGRESSWOMAN NYDIA VELAZQUEZ

MARCH 2, 1994

THANK YOU MR. CHAIRMAN, AND GOOD MORNING TO OUR WITNESSES.

I COMMEND THE CHAIRMAN FOR HIS CONTINUING SCRUTINY OVER AN ISSUE

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IMPORTANTLY, MINORITY AND WOMEN OUTREACH PROGRAMS LIKE THE ONE

BEFORE US HELP TO ENSURE THAT WE NO LONGER SQUANDER THE IMMENSE

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PERCENT OF MINORITY-AND WOMEN-OWNED BUSINESSES ARE CURRENTLY

PARTICIPATING.

WE MUST DO BETTER.

THE RTC MUST MAXIMIZE

ECONOMIC OPPORTUNITIES FOR MINORITY- AND WOMEN-OWNED BUSINESSES

AND INSTITUTIONS IN THE REMAINING EIGHTEEN MONTHS OF IT'S

CHARTER.

I LOOK FORWARD TO HEARING FROM MR. ALTMAN AND HIS COLLEAGUES

ON THE RTC'S OUTREACH TO MINORITY- AND WOMEN-OWNED BUSINESSES

OVER THE PAST YEAR, AND THEIR PLANS FOR INCREASING MINORITY AND

WOMEN PARTICIPATION IN THE COMING EIGHTEEN MONTHS.

THANK YOU.

TESTIMONY

OF

JOHN RYAN, DEPUTY CEO

THE RESOLUTION TRUST CORPORATION

SUBCOMMITTEE ON GENERAL OVERSIGHT,

INVESTIGATIONS, AND THE RESOLUTION OF

FAILED FINANCIAL INSTITUTIONS

10:00 A.M.

MARCH 2, 1994

2222 RAYBURN HOUSE OFFICE BUILDING

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Good morning, Mr. Chairman and Members of the Subcommittee. This is my first appearance

before the Subcommittee since being appointed Deputy Chief Executive Officer of the RTC in

early January. With me today are Johnnie B. Booker, Vice President, Division of Minority and

Women's Programs, Ellen B. Kulka, our newly appointed General Counsel who joined the RTC

in mid-January, and J. Paul Ramey. Vice President, Division of Resolutions.

I would like to thank you, Mr. Chairman, and Members of the Subcommittee for your efforts

to secure funding for the RTC. With your help, the RTC Completion Act was enacted last

December. The RTC will now be able to complete its mission, close its doors and bring the

S&L cleanup to a close.

We are here to address the management reforms found in Section 3 of the RTC Completion Act

that provide Minority- and Women-owned Businesses (MWOBs) and Minority- and Women

owned Law Firms (MWOLFs) with enhanced opportunities to do business with the RTC and that

provide minorities with enhanced opportunities to acquire institutions from the RTC.

MWOB and MWOLF Activities

Mr. Chairman, I am pleased to report on the record we have built and the steps we have taken

to provide opportunities for minority-and women-owned businesses at the RTC.

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First, to demonstrate the RTC's commitment, the Minority and Women's Program (MWP) was

moved up in the organizational structure to the Division level. Its manager was made a full Vice

President, serves on the Executive Committee, and reports directly to the CEO.

Second, we made sure that the MWP Division was involved fully in the contracting process.

It now participates in virtually every phase of contract operations, including pre-solicitation,

solicitation, evaluation, selection, contract administration, and post-award activity.

The record demonstrates the effectiveness of these actions. On a cumulative basis since

inception, the RTC has awarded 126,939 non-legal contracts nationwide, with 41,267 or 33

percent being awarded to MWOBs. Of the $3.7 billion awarded in non-legal fees, $786 million

(21 percent) has been awarded to MWOBs. Non-minority women received fees of $399 million,

or 11 percent of total fees. Ethnic minorities received $387 million, or 10 percent of fees

(Exhibit 1).

Now, let's look at last year. Although total contract awards and related fees decreased in 1993

reflecting the approaching completion of the RTC's activities, the proportion going to MWOBs

has increased. In 1993, RTC paid non-legal fees of $500 million, with MWOBs receiving $155

million (31 percent). Non-minority women were awarded fees of $54 million (11 percent).

Ethnic minorities received $101 million in fees (20 percent). The proportion of non-legal

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