◆ SpookStack

and caused large losses to the S&L. Tucker's office did not respond to U.S. Is Asked to Probe requests for an interview. The RTC, which disposes of S&Ls, took over Madison after its 1989 fail- Failed Arkansas S&L ure, expected to cost taxpayers an estimated $47 million. In examining the Madison trans- actions, the RTC has asked Casey to RTC Questions Thrift's Mid- 80s Check Flow determine whether checks to the. Clinton campaign were paid from To Politicidns, Clinton Reelection Campaign overdrawn accounts with the author- ization of Madison's owner, James B McDougal, or whether Madison written on Madison accounts ended By SusanSchmidt loans intended for other purposes up in Clinton's campaign fund. The Washington Post Staff Writer were used for campaign contribu- sources said there is no indication tions. McDougal is a longtime friend The Resolution Trust Corp. has Clinton had personal knowledge of or and business partner of Bill and Hil- asked federal prosecutors in Little involvement in the transactions, and lary Rodham Clinton and was an eco- Rock to open a criminal investigation the White House said yesterday into whether a fajled Arkansas sav- nomic development aide during Clin-. there would be no way Clinton would ings and loan used depositors' funds have known if money from Madison ton's first term as governor. during the mid-80s to benefit local In an interview, McDougal said he accounts had been improperly used politicians, including a reelection to make campaign contributions. had no knowledge of any Madison campaign of then-governor Bill Clin- The RTC request, based on a funds being used improperly. "I nev- ton. broad probe of the S&L's financial er approved an overdraft in the en- About three weeks ago, the RTC affairs, also asks for further federal tire time I was down there,' he said. forwarded to U.S. Attorney Paula investigation of Madison's dealings Clinton aide Bruce Lindsey said Casey in Little Rock information with current Arkansas Gov. Jim yesterday that McDougal helped or- about 10`matters arising from trans- Guy Tucker (D), the sources said. ganize an April 1985 fund-raiser to actions at the now-defunct Madison Tucker's companies borrowed pay off Clinton's 1984 campaign Guaranty Savings & Loan that war- more than $1 million from the S&L rant criminal investigation, according debts.Lindsey said he does not know for real estate and other ventures how much was raised during the to government sources familiar with during the mid-1980s, when he was the probe. A written summary of the fund-raiser and does not have the referral has been sent to the Justice at a law firm that represented Mad- state campaign records, which are Department, according to sources. ison. Some of the loans were made routinely discarded after five years. The package includes questions on what appear to be favorable terms But he said he had seen a deposit slip about whether a series of checks See RTC, A14, Col. 1 noting that McDougal contributed $3,000, which was not in excess of campaign limits at the time. Lindsey said he understands that the RTC is questioning the "source of funds' for that check and perhaps others. "How in the world would we have any knowledge of that?" Lindsey said. "Where the funds came from for that check---there's absolutely no way we would know or have questioned that." RTC investigators have exam- ined irregular Madison transactions that took place in April 1985 and have attempted to find out who en- dorsed and deposited a series of checks made out to Clinton.or the gubernatorial campaign, one source familiar with the probe said. Lind- sey said it would not be unusual for campaign contributors to make out checks in Clinton's name--and that was done by some at the 1985 fund raiser-but that those checks would be placed in the campaign fund, which was maintained at Ar- Lansas' Bank of Cherry Valley.