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0-19 (Rev. 4-26-83) Exec AD Adm Exc AD Inv Exec AD LES Asst.Dir. Adm.Servs Crim. Inv. Ident. Insp. Intell. Lab. Legal Coun. Off.Cong.& Public Affs. Rec.Mgnt. Tech. Servs Training Telephone Rm. Director's Sec'y Bipartisan Probe of Arkansas S&L Ruled Out Republicans on House Banking Panel Pursue Case With Clinton Links tey GOP committee members intend to tigation, and several banking agen- By Susan Schmidt go forward with the investigation, cies are determining whether they Washington Post Staff Writer and letters to various state and fed- can file civil suits." The Democratic chairman of the eral regulatory agencies were sent In a letter to Leach, Gonzalez House Banking Committee has out late last week over his signa- said the circumstances at Madison changed his mind and decided not to ture. do not raise legislative issues, participate in a congressional inves- In a four-page letter to Gonzalez, and he said he would not permit tigation of a failed Arkansas savings Leach raised a dozen issues relating "Republican political operatives" to and loan with ties to President Clin- to Madison that he said merit con- use the committee to conduct "a ton-that is now under scrutiny by. gressional scrutiny, including alle- purely political fishing expedition." the Justice Department. gations under review by the Justice Last month, at the request of Department that S&L funds may Republicans on the Banking Com- have been used for political pur- mittee, Rep. Henry B. Gonzalez poses. D-Tex.) said that the committee Gonzalez, in a statement re- staff would conduct a bipartisan leased by his office, said that investigation.ofMadison Guaranty Madison officials "may have en- Savings & Loan of Little Rock. gaged in illegal activities, but Madison's former owner, James B. those matters are most appropri- . McDougal, was a partner in a land ately addressed by the Justice De- development company with Clin- partment and the bank regulators, ton and Hillary Rodham Clinton. not the committee. In fact, the Rep. Jim Leach (Iowa), the com- Justice Department is already ac- mittee's ranking Republican, said tively pursuing a criminal inves- The Washington Post The Washington Times Daily News (New York) The New York Times The Wall Street Journal The Chicago Tribune The Los Angeles Times The Christian Science Monitor C-o- USA Today 66F-hQ - I@b0393 Date _l2. Page FBI/DOJ