The Clintons May Be Facing Whitewater II 2nd Case Involves Illinois S&l

By William Gaines 1994, Chicago Tribune | St Louis Post-Dispatch (MO), February 4, 1994 | Go to article overview

The Clintons May Be Facing Whitewater II 2nd Case Involves Illinois S&l


William Gaines 1994, Chicago Tribune, St Louis Post-Dispatch (MO)


THE SPECIAL PROSECUTOR appointed to scrutinize the business dealings of Bill and Hillary Rodham Clinton will focus on their role in an Ozark land development called Whitewater.

But another case buried deep in court records could prove equally troubling to them - particularly if special prosecutor Robert Fiske makes good on his pledge to publish a report on the Clintons' political and business relationships when he was governor of Arkansas in the 1980s.

The matter involves a court case that Mrs. Clinton helped settle when she was a high-powered lawyer in Little Rock, and the government was trying to sort out the problems of a bankrupt Illinois savings and loan.

The case suggests that she, as a private lawyer, had a glaring conflict of interest. As an attorney for the Federal Deposit Insurance Corp., she helped negotiate an out-of-court settlement that ended the government's suit against a family friend and an influential benefactor of her husband.

But the political problems the case could pose for the president and his wife may go far beyond the narrow questions about Mrs. Clinton's conduct as a lawyer.

As in Whitewater, the Illinois case places the Clintons once again in an association with a wheeler-dealer who had strong personal ties to the Clintons and even stronger financial ties to the Clinton administration in Little Rock.

In Whitewater, the trouble stems from the Clintons' business relationship with James McDougal, the guiding force behind Madison Guaranty, an Arkansas savings and loan that went broke and cost taxpayers more than $80 million. Special prosecutor Fiske will examine whether Clinton or his gubernatorial campaign benefited from McDougal's favorable treatment by a state agency in Arkansas when Clinton was governor.

In the Illinois case, the problem stems from the Clintons' friendship with Dan Lasater, a convicted felon whose high-flying bond trading firm played a hand in the troubles of several savings and loans, including First American Savings and Loan Association. The S&L in Oak Brook, Ill., was headed by another politician, Dan Walker, who was governor of Illinois from 1973 to 1977.

The case begins in 1979 at the Oaklawn Park race track in Hot Springs, Ark. Clinton's c mother, Virginia Kelley, had a passion for thoroughbred horse racing, and her box at the track was next to Lasater's.

He met Kelley and Clinton's half-brother, Roger Clinton, at the racetrack. The racetrack friendship soon blossomed into an introduction to Bill Clinton, who was trying to regain the governor's mansion after losing an election in 1980.

By early 1983, Lasater had given Roger Clinton a job at his Florida horse farm; Bill Clinton had reclaimed the governor's mansion; and Lasater's bond firm had been added to a list of brokerage firms eligible to underwrite state bond issues, a classification that generated millions of dollars in business for his firm, according to published reports.

Over the next two years, the ties between Lasater and the Clintons grew stronger. The Clintons benefited from the relationship, as Lasater:

Contributed money to the governor's campaign.

Lent Roger Clinton $8,000 to pay off a drug debt.

Sponsored fund-raising parties at his offices.

Made his private plane available to the governor for campaign jaunts.

Encouraged his staff to donate to the governor's campaign, promising higher commissions to compensate for the donations, according to published reports.

At one point in 1985, Lasater also made his plane available to squire celebrities to a charity function organized by Hillary Clinton.

He benefited from the closer ties, too. In the summer of 1985, Bill Clinton successfully lobbied the Arkansas Legislature to approve a contract for Lasater to sell $30.2 million in bonds for the new state police radio system.

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

The Clintons May Be Facing Whitewater II 2nd Case Involves Illinois S&l
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?

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.