Within two years after Whitewater Corporation was formed (See X-File X301A), and shortly after William Jefferson Blythe Clinton was elected Governer, Jim McDougal formed his second bank: Madison Guaranty Savings and Loan. The original assets were under $500,000. By 1985 the bank was worth over $100 million in bad loans and was on the road to bankruptcy. Jim Guy Tucker received over $1 Million dollars in loans that were never repaid.

While Governor, William Jefferson Blythe Clinton replaced the head of the Banking Oversight Department in Arkansas with a friend of McDougal's. This was important patronage to McDougal because he was making every effort to avoid the bank's insolvency being discovered. This was even more likely to be a conflict because McDougal's legal advice came from Rose Law Firm, where Hillary Clinton went to work after Clinton was elected Arkansas AG.

While Hillary Rodham Clinton maintains she had minimal involvement in the Rose Law Firm dealings with McDougal others indicate that she was heavily involved in legal work with Madison Guaranty. Madison filed for bankruptcy in 1989 leaving a $68 million bill for U.S. taxpayers.

A similar land deal, originated by McDougal and others, that included some alledged special favors from then Governor Clinton led to additional failed bank ventures and taxpayer payouts (See X-File X512A)

Special Prosecuter Starr supoenaed Hillary Clinton's billing records determine if speculation surrounding her work for Madison was true or false. Those papers were reported missing and remained so for two years until an aide "discovered" them in the living quarters of the Whitehouse. The administration denies any wrong-doing, claiming they don't know how the records came to rest on that table in the Whitehouse. Many believe that the records were hidden to avoid implicating Hillary Clinton in criminal actions.

The billing records did show that she may have cinspired to make an illegal land deal. The records also show that she performed over 60 hours work for Madison Guaranty and that she was paid $2,000 per month over an 18 month period.

It is interesting to note that the statute of limitations is two years and that enough time had passed prior to the discovery that she is immune to prosecution on the evidence those documents provide.

Again, many strange events surround this issue. Documents disappear from Arkansas and reappear in the Whitehouse, a key individual dies in unusual circumstances (See Vince Foster's Death: X307A), another dies in jail while in individual confinement, another spends months in jail in contempt of court (refusing to answer questions), just to name a few. The secrecy surrounding this situation does not allow a firm conclusion.

This document subject to change without notice - in order to better communicate my message.