where judicial review based on the agency record is also possible, ex parte intercession should be viewed as inappropriate. Where an agency is exercising rulemaking powers conferred upon it by Congress, it must follow procedures for the formulation of rules set forth in the Administrative Procedure Act. Efforts to influence the rulemaking process outside the scope of those procedures may also be viewed as inconsistent with the scheme Congress itself established. Issues arising out of the process of bank examination may be viewed as especially inappropriate for congressional intercession. If bank examiners are to do their job properly, they cannot be subject to challenge by individual members of Congress acting on behalf of the institution being examined, while the examination process is going on. The procedure affords due-process protections to the institutions involved, and the responsible committees of Congress have ample oversight jurisdiction to assess the quality of supervision after the fact. To tolerate ex parte interference in the process by members of Congress and their staffs would ultimately weaken not only the process itself, but, more importantly, public confidence in the examination and oversight process. There are, to be sure, occasions on which representations from members of Congress to the financial regulatory agencies may be perfectly appropriate. Routine "status" inquiries, when not intended to communicate a coercive intent, are certainly within the realm of acceptable conduct, as are formal comments on proposed rulemaking actions. In all such cases, however, the agencies should make such communications a matter of public record indeed, Congress itself should insist on such a procedure. Such a disclosure rule would not only inhibit improper communication, but would bolster public confidence in the integrity of the regulatory process. Benk Board's Henkel Proposed a Rule helf Armame of Two #ALS & FUSUT JOvera WASHINGTON – A ruje propuned by Federsi rieme Lasa Bans Board member Lee Menzel cound have helped a tant VILA VAGA Str. Hersei has had estanmve but A groviison of the proposal might have effectively unusurized Lincoln Savings & Lu Asaariation in Irvine. Call.. from Any interesment actions in a dispute with the Leuncy over investments worating at feast 3615.4 million. The proposal died s the Bank Board meeting lam Thursday for Lack of a scand BAAR Board surens said the LETOCY kammt been able to idematy wny other unfts that might have benefited from the previston, but if some are found. tal benefit is ikely to b smaller than the benefit to L Albeng Mr. Henzet diazua eral provisions of his prop ern at the agVICY in the reezing, center the section have helped Linceta our the i dremed was reard, according to sources. It first surfaced when Mr. Henkel read his motion in the open meeting, the As reported previously, deed records in the Atlanta ares show that Uncola Made at fens 101.9 mulfion to loans to corporeCons and partnerships in which Mr. Menzel had an interest. The records indicate that Linevin was by far the largest single source of financing for a clasety baid real estate development company of which Mr. . Hensel was chairman, a shareholder and ene of three directors. Lincoin & Barent company la contracted by Carten Keating, an outspoken critic af und reach. Mr. Menzel & former Adanta attorney, Lepmated to the three-member BANK Beart by Prendent Reagan Nov. 7. He has put All 225 bunem intervms that bad tractens vu unna-including thane vita leans from Lincoln-into a wind trust, He has also sud he intends to recuse Num sett from Banz Board votes specifically l velving lands be has dealt with, including Mr. Monkel was asked through an tide for comment on tata story yesterday, but didn't return telephone calls before leaving Washington yuterday aftersom Ad the Beak Board grappled with to extend its controvermal rue r king investments taníts may make making ventures during Thursday's hour meeting. Mr. Mental surved in afy the rule and extend it through the |