Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, August 4, 1994 TAG: 9408040087
SECTION: NATIONAL/INTERNATIONAL PAGE: A-1 EDITION: METRO
SOURCE: Newsday
DATELINE: WASHINGTON LENGTH: Medium
A review of the record showed no fewer than a dozen disagreements between officials over key facts relating to at least 40 contacts - meetings, telephone calls and facsimile transmissions - involving aides to President Clinton and regulators from agencies probing Madison Guaranty Savings and Loan. The Arkansas thrift is suspected of diverting funds to Clinton's gubernatorial campaign and the Whitewater real estate development.
In testimony Wednesday before the Senate panel, Treasury Secretary Lloyd Bentsen hewed to the administration's position, telling the Banking Committee that while the White House and the Treasury officials may have conferred inappropriately, they took no action to squelch the probe of Whitewater by the Resolution Trust Corp.
Bentsen's recollection of events diverged markedly from the sworn testimony offered this week by his senior aides - Deputy Treasury Secretary Roger Altman, Treasury Counsel Jean Hanson and Treasury chief of staff Josh Steiner.
After grilling Altman until 2 a.m., Democrats and Republicans alike on the Senate committee chastised Bentsen after Treasury officials offered sworn testimony that Banking Committee Chairman Donald Riegle, D-Mich., said was ``less than full, direct, blunt [and] candid.''
Among the contradictions surfacing Wednesday:
Bentsen testified that he did not learn that the president and Hillary Rodham Clinton, were named as possible witnesses in a Resolution Trust Corp. criminal referral until it was reported in the press in October. And Bentsen said it wasn't until March 3 that he learned of the extent of the RTC-Treasury-White House contacts. But Hanson said she had briefed Bentsen about Whitewater much earlier, something Bentsen said he did not remember.
Bentsen said he did not tell Altman - then acting head of the RTC - to step down or ``recuse'' himself from the Madison probe on Feb. 1. But Altman testified that Bentsen had endorsed his recusal.
Hanson testified that Altman told her to brief White House officials about Whitewater, but Altman and Bentsen said they did not remember giving such an order. An incredulous Sen. John Kerry, D-Mass., said, ``It is hard for me to imagine'' that Hanson ``would spontaneously contact the White House without some authorization.''
Meanwhile, Altman, weary from his 10-hour Senate session, spent another 51/2 hours on Whitewater on Wednesday at a House Banking Committee hearing. House Republicans also pointed up conflicts between administration witnesses.
Altman wrote in his diary that Hillary Clinton's chief of staff, Margaret Williams, told him the first lady was ``paralyzed'' by Whitewater and didn't want a special prosecutor ``poking around.'' But Williams denied saying that to Altman. Rep. Peter King, R-N.Y., criticizing Altman for softpedaling differences in the officials' recollections, said Altman was trying ``to put a wall around Maggie Williams and insulate the White House.''
In another development, House Republicans revealed a memo White House deputy chief of staff Harold Ickes sent to Hillary Clinton in March noting that the RTC could sue the Clintons if they had ``worked with insiders illegally'' to divert money from Madison. The memo names and describes the top RTC career officials who would decide whether to bring suit after Altman quit the RTC.
by CNB