Inside Track Leads to outside Travesty

By Dickson, David M. | Insight on the News, February 26, 1996 | Go to article overview
Save to active project

Inside Track Leads to outside Travesty


Dickson, David M., Insight on the News


For the moment, the spotlight shines on Hallary Rodham Clinton, who seems to be feeling the effects of the drip-by-drip revelations squeezed by the Senate Whitewater committee. At the end of January, the first lady occupied the hot seat in front of a federal grand jury investigating the mysterious reappearance of her Rose Law Firm billing records and other matters relating to her legal work for the Madison Guaranty Savings and Loan Association. Clinton, however, displayed her customary cool - even took time out to sign a copy of her new book, It Takes a Village and Other Lessons Children Teach Us, for a starstruck member of the grand jury.

It should be understood, however, that while Clinton faced the grand jury alone last week, she was really in the dock for collaborative activity involving her husband. It was only through their collective efforts that the Clintons succeeded so well before, during and after the 1992 campaign in forestalling, complicating, delaying and perhaps even obstructing the investigation of their business dealings in Arkansas. But nowhere is their masterful teamwork more evident than in the roles they played actively in delaying the inevitable demise of Madison Guaranty, which was owned and operated by James McDougal, the Clintons' partner in the failing Whitewater real-estate development venture.

To appreciate fury the statewide omnipotence of the eighties power-couple tag team of Arkansas Gov. Bill Clinton and superlawyer Hillary Rodham Clinton, you have to go back 50 years to the fabled Army football teams featuring the legendary backfield duo of fullback Doc Blanchard and halfback Glenn Davis, known as Mr. Inside and Mr. Outside, respectively.

With Bill Clinton (Mr. Inside) working the levers of government from within the statehouse, earning the less-than-princely annual salary of $35,000, his wife (Ms. Outside) was free to dabble in family-income-enhancing projects, including cattle futures, real-estate development projects, a Rose Law Firm partnership, boards-of-directors appointments, etc.

And even though Blanchard (1945) and Davis (1946) each won a Heisman Trophy honoring them as college football's best player, Mr. Inside and Mr. Outside worked most effectively together, achieving their greatest collective feats by winning back-to-back national championships in 1944 and 1945. So, too, with the Arkansas duet. Though individually powerful, their collaborative efforts could overwhelm any opposition.

The Federal Home Loan Bank Board, or FHLBB, first audited Madison's books in late 1983, film its official report in January 1984. Concluding that Madison was in an "insolvent position," the FHLBB report warned, "The viability of the institution is jeopardized." The federal agency issued wide-ranging cease-and-desist orders and instructed McDougal to raise more capital. The FHLBB told McDougal that it would be returning in two years. In the meantime Madison would be under the jurisdiction of state regulatory agencies, which would be responsible for monitoring its condition and overseeing its recapitalization efforts.

Trying desperately to save his failing S&L, McDougal went into overdrive. He immediately hired the FHLBB examiner, Sarah Worsham, as a Bentley-driving vice president and board member earning $65,000 a year.

McDougal says he then implored his Whitewater business partner, Bill Clinton, to appoint 31-year-old, well-connected attorney Beverly Bassett Schaffer to head the Arkansas Securities Commission, the regulatory body that would be responsible for approving Madison's FHLBB-mandated recapitalization plan. Schaffer once worked on the Madison account for a law firm in which current Arkansas Gov. Jim Guy Tucker (now under indictment) was a partner. Schaffer is also the sister of Woody Bassett, a political contributor to Gov. Clinton and his 1984 campaign manager, and the wife of Archie Schaffer, who is an executive at Tyson Foods Inc.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Inside Track Leads to outside Travesty
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.