Comptroller of the Currency Eugene A. Ludwig's presence at a White House "coffee" hosted by President Clinton for the chief executives of major banks has attracted a lot of attention. Critics believe it was inappropriate for a bank regulator to attend a meeting with bankers at which officials of the Democratic National Committee were present.
In addition to being a decent human being, Gene Ludwig is a very good comptroller of the currency. He's taken a number of initiatives to promote competition and strengthen the banking industry.
Any political threat to the comptroller's agenda, which is clearly in the best interests of the public and the banking industry, is troubling. One has to be concerned about his critics' motivations.
As I understand it, Mr. Ludwig received an invitation to attend the coffee from someone on the White House staff. When the story broke, I considered what I would have done if I had received a similar invitation when I headed the Federal Deposit Insurance Corp.
I doubt anyone would think of me as having been particularly partisan during my tenure at the FDIC. I was appointed to the Republican seat on the FDIC board by Jimmy Carter and was elected chairman under Ronald Reagan.
If I had received a call from the White House telling me that President Reagan and the secretary of the Treasury were going to meet with bankers to discuss policy issues and wanted me to attend, I would have asked, "What time do you want me there?"
I would have assumed the meeting had political purposes. Everything in Washington does.
It would never have occurred to me to ask whether any political operatives would be in attendance. When you think about it, the President- any President-is our nation's chief political operative.
If I had been asked by a senator-from either party-to participate in a meeting the senator had organized for a group of bankers, I likely would have accepted the invitation. I wouldn't have thought to ask whether the chairman of the senator's reelection committee would be in attendance. The meeting undoubtedly would have served some political purpose for the senator.
I wanted to meet with bankers as often as I could. I tried to rally support for policies and legislative positions I felt were important. Banker feedback on what was happening in the industry and how the FDIC could do its job better was important to me.
It didn't much matter who organized the meeting, so long as the organizer was considered reputable. The President, a representative, or a senator usually satisfied the test. While I wouldn't have knowingly attended a meeting organized to promote someone's election, it's possible I did so unwittingly.
If I had been in Gene Ludwig's shoes and had learned that my boss-the secretary of the Treasury-and the President were going to meet with bankers to discuss policy issues, I would have wanted to attend. If I had not been invited to participate, I would have been concerned.
The issue is not whether Gene Ludwig attended a White House meeting with bankers. The question is whether he has made any inappropriate, partisan decisions as comptroller. I have not heard any suggestion that he has.
According to press reports, the Clinton administration engaged in some deplorable fund-raising activities during the 1996 election campaign. The charges are serious and deserve a thorough airing.
To lump the comptroller's attendance at the White House coffee with these far more serious questions does a disservice to Gene Ludwig and detracts from the important issues on which public attention should be focused.
