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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 217 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
S. RES. 217

 Establishing a special subcommittee within the Committee on Banking, 
Housing, and Urban Affairs to conduct an investigation into allegations 
  concerning the Whitewater Development Corporation, Madison Guaranty 
 Savings and Loan Association, and Capital Management Services, Inc., 
                       and other related matters.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 May 25 (legislative day, May 16), 1994

  Mr. D'Amato (for himself, Mr. Dole, Mr. Wallop, Mr. Murkowski, Mr. 
 Gramm, Mr. Mack, Mr. Bond, Mr. Faircloth, Mr. Bennett, Mr. Domenici, 
Mr. Roth, Mr. Nickles, Mr. Simpson, Mr. Lott, Mr. McCain, Mr. Stevens, 
 Mrs. Hutchison, Mr. Kempthorne, Mr. Smith, Mr. Hatch, Mr. Craig, Mr. 
 Helms, Mr. Coverdell, Mr. Pressler, Mr. Thurmond, Mr. McConnell, and 
Mr. Cochran) submitted the following resolution; which was referred to 
               the Committee on Rules and Administration

_______________________________________________________________________

                               RESOLUTION

 
 Establishing a special subcommittee within the Committee on Banking, 
Housing, and Urban Affairs to conduct an investigation into allegations 
  concerning the Whitewater Development Corporation, Madison Guaranty 
 Savings and Loan Association, and Capital Management Services, Inc., 
                       and other related matters.

    Resolved, 

               establishment of the special subcommittee

    Section 1. (a) There is established a special subcommittee within 
the Committee on Banking, Housing, and Urban Affairs to be known as the 
Special Subcommittee on Certain Allegations Concerning Whitewater 
Development Corporation, Madison Guaranty Savings and Loan Association, 
and Capital Management Services, Inc., and Related Issues (hereafter in 
this resolution referred to as the ``special subcommittee'').
    (b) The purpose of the special subcommittee is--
            (1) to conduct an investigation into, and study of, all 
        matters which have any tendency to reveal the full facts 
        about--
                    (A) the operations, solvency, and regulation of 
                Madison Guaranty Savings and Loan Association, 
                including the alleged use of federally insured funds as 
                campaign contributions;
                    (B) the relationship among Madison Guaranty Savings 
                and Loan Association, other federally insured 
                institutions, and Whitewater Development Corporation;
                    (C) the management and business activities of 
                Whitewater Development Corporation and its 
                shareholders, including issues of personal, corporate, 
                and partnership tax liability;
                    (D) the policies of the Resolution Trust 
                Corporation, Federal banking agencies, and other 
                Federal regulatory agencies regarding legal 
                representation of the agencies, including conflicts of 
                interest and cost controls;
                    (E) the independence of the Resolution Trust 
                Corporation, Federal banking agencies, and other 
                Federal regulatory agencies, including any improper 
                contacts among officials of the White House, the 
                Department of the Treasury, the Resolution Trust 
                Corporation, the Office of Thrift Supervision, and any 
                other Federal agency;
                    (F) the Resolution Trust Corporation's internal 
                handling of the criminal referrals concerning Madison 
                Guaranty Savings and Loan Association;
                    (G) the pursuit by the Resolution Trust Corporation 
                of civil causes of action against potentially liable 
                parties associated with Madison Guaranty Savings and 
                Loan Association;
                    (H) the pursuit by the Office of Thrift 
                Supervision, the Federal Deposit Insurance Corporation, 
                and the Federal Savings and Loan Insurance Corporation 
                of administrative and civil causes of action against 
                potentially liable parties associated with Madison 
                Guaranty Savings and Loan Association;
                    (I) the Department of Justice's handling of the 
                Resolution Trust Corporation's criminal referrals 
                relating to Madison Guaranty Savings and Loan 
                Association;
                    (J) the delayed recusal of the United States 
                Attorney for the Eastern District of Arkansas from the 
                investigation or prosecution of David Hale, Capital 
                Management Services, Inc., and Whitewater Development 
                Corporation;
                    (K) the sources of funding and the lending 
                practices of Capital Management Services, Inc., and its 
                supervision and regulation by the Small Business 
                Administration, including loans to Susan McDougal and 
                the alleged diversion of funds to Whitewater 
                Development Corporation;
                    (L) the Park Police investigation into the death of 
                White House Deputy counsel Vincent Foster;
                    (M) the operations and underwriting activities of 
                the Arkansas Development Finance Authority;
                    (N) the circumstances surrounding and the propriety 
                of the commodities-futures trading activities of 
                Hillary Rodham Clinton;
                    (O) the investment activities of Value Partners I, 
                including the compliance of these activities with 
                Federal laws governing conflicts of interest;
                    (P) any other issues related to the matters 
                referred to in subparagraphs (A) through (O); and
                    (Q) any issues developed during, or arising out of, 
                the hearings conducted by the special subcommittee; and
            (2)(A) to make such findings of fact as are warranted and 
        appropriate;
            (B) to make such recommendations, including recommendations 
        for new legislation and amendments to existing laws and any 
        administrative or other actions, as the special subcommittee 
        may determine to be necessary or desirable; and
            (C) to fulfill the Constitutional oversight and informing 
        function of the Congress with respect to the matters described 
        in this section.
    (c) For purposes of this section, the term ``Madison Guaranty 
Savings and Loan Association'' includes any subsidiary company, 
affiliated company, or business owned or controlled, in whole or in 
part, by Madison Guaranty Savings and Loan Association, its officers, 
directors, or principal shareholders.

        membership and organization of the special subcommittee

    Sec. 2. (a)(1) The special subcommittee shall consist of--
            (A) 5 members of the Committee on Banking, Housing, and 
        Urban Affairs appointed by the chairman;
            (B) 5 members of the Committee on Banking, Housing, and 
        Urban Affairs appointed by the ranking member;
            (C) 3 members of the Senate appointed by the President pro 
        tempore of the Senate from the majority party of the Senate 
        upon the recommendation of the Majority Leader of the Senate; 
        and
            (D) 3 members of the Senate appointed by the President pro 
        tempore of the Senate from the minority party of the Senate 
        upon the recommendation of the Minority Leader of the Senate.
    (2) Vacancies in the membership of the special subcommittee shall 
not affect the authority of the remaining members to execute the 
functions of the special subcommittee and shall be filled in the same 
manner as original appointments to it are made.
    (3) For the purpose of paragraph 4 of rule XXV of the Standing 
Rules of the Senate, service of a Senator as a member of the special 
subcommittee shall not be taken into account.
    (b)(1) The chairman and ranking member of the Committee on Banking, 
Housing, and Urban Affairs shall be cochairmen of the special 
subcommittee.
    (2) A majority of the members of the special subcommittee shall 
constitute a quorum for reporting a matter or recommendation to the 
Senate, except that a quorum shall not be necessary for the purpose of 
taking testimony before the special subcommittee or for conducting the 
other business of the special subcommittee.
    (c)(1) The special subcommittee shall promptly adopt appropriate 
rules and procedures consistent with this resolution.
    (2) The rules and procedures of the special subcommittee shall--
            (A) govern the proceedings of the special subcommittee; and
            (B) consistent with section 6 of this resolution--
                    (i) provide for the security of the records of the 
                special subcommittee; and
                    (ii) prevent the unauthorized disclosure of 
                information and materials obtained by the special 
                subcommittee in the course of its investigation and 
                study.

                   staff of the special subcommittee

    Sec. 3. (a)(1) Committee staff from committees having jurisdiction 
over matters described in section 1(b) shall be detailed to the special 
subcommittee, subject to availability, as requested by the cochairmen.
    (2) In addition to staff detailed pursuant to paragraph (1) and to 
assist the special subcommittee in its investigation and study, the 
cochairmen, after approval of the special subcommittee, may appoint 
special subcommittee staff.
    (3) All staff detailed pursuant to paragraph (1) or appointed 
pursuant to paragraph (2) shall work for the special subcommittee as a 
whole, shall report to the two cochairmen and, except as otherwise 
provided by the special subcommittee, shall be under the direction of 
the cochairmen.
    (b) To assist the special subcommittee in its investigation and 
study, the Senate Legal Counsel and Deputy Senate Legal Counsel shall 
work with and under the jurisdiction and authority of the special 
subcommittee.
    (c) The Majority and Minority Leaders of the Senate may each 
designate one staff person to serve on the staff of the special 
subcommittee to serve as their liaison to the special subcommittee.
    (d) The Comptroller General of the United States is requested to 
provide from the General Accounting Office whatever personnel, 
investigatory, material, or other appropriate assistance may be 
required by the special subcommittee.

             public activities of the special subcommittee

    Sec. 4. (a) Consistent with the rights of persons subject to 
investigation and inquiry, the special subcommittee shall make every 
effort to fulfill the right of the public and the Congress to know the 
essential facts and implications of the activities of officials of the 
United States Government and other persons and entities with respect to 
the matters under investigation and study as described in section 1.
    (b) In furtherance of the public's and Congress' right to know, the 
special subcommittee--
            (1) shall hold, as either cochairman considers appropriate, 
        open hearings on specific subjects, subject to consultation and 
        coordination within the independent counsel appointed pursuant 
        to chapter 28, part 600, of the Code of Federal Regulations 
        (referred to as the ``independent counsel'');
            (2) may make interim reports to the Senate as it considers 
        appropriate; and
            (3) shall make a final comprehensive public report to the 
        Senate which contains a description of all relevant factual 
        determinations consistent with subsection (a) of this section 
        and section 1(b)(2) and which contains recommendations for new 
        legislation, if necessary.

                   powers of the special subcommittee

    Sec. 5. (a) The special subcommittee shall do everything necessary 
and appropriate under the laws and Constitution of the United States to 
make the investigation and study specified in section 1.
    (b) The special subcommittee is authorized to issue subpoenas for 
obtaining testimony and for the production of documentary or physical 
evidence. A subpoena may be authorized and issued by the special 
subcommittee, acting through either cochairman or any other member 
designated by either cochairman, and may be served by any person 
designated by either cochairman or other member anywhere within or 
without the borders of the United States to the full extent permitted 
by law. Either cochairman of the special subcommittee, or any other 
member thereof, is authorized to administer oaths to any witnesses 
appearing before the subcommittee.
    (c) The special subcommittee is authorized to do the following:
            (1) To employ and fix the compensation of such clerical, 
        investigatory, legal, technical, and other assistants as the 
        special subcommittee considers necessary or appropriate.
            (2) To sit and act at any time or place during sessions, 
        recesses, and adjournment periods of the Senate.
            (3) To hold hearings, take testimony under oath, and to 
        receive documentary or physical evidence relating to the 
        matters and questions it is authorized to investigate or study.
            (4) To request a grant of immunity under section 6005 of 
        title 18, United States Code, after consultation with the 
        independent counsel.
            (5) To require by subpoena or order the attendance, as 
        witnesses before the special subcommittee or at depositions, of 
        any person either cochairman determines may have knowledge or 
        information concerning any of the matters the special 
        subcommittee is authorized to investigate and study.
            (6) To take depositions and other testimony under oath 
        anywhere within the United States, to issue orders by either 
        cochairman or any other member designated by either cochairman 
        which require witnesses to answer written interrogatories under 
        oath, and to make application for issuance of letters rogatory.
            (7) To issue commissions and to notice depositions for 
        staff members to examine witnesses and to receive evidence 
        under oath administered by an individual authorized by local 
        law to administer oaths. The special subcommittee, acting 
        through either cochairman, may authorize and issue, and may 
        delegate to designated staff members the power to authorize and 
        issue, commissions and deposition notices.
            (8) To require by subpoena or order--
                    (A) any department, agency, entity, officer, or 
                employee of the United States Government,
                    (B) any person or entity purporting to act under 
                color or authority of State or local law, or
                    (C) any private person, firm, corporation, 
                partnership, or other organization,
        to produce for its consideration or for use as evidence in the 
        investigation or study of the special subcommittee any book, 
        check, canceled check, correspondence, communication, document, 
        financial record, paper, physical evidence, photograph, record, 
        recording, tape, or any other material relating to any of the 
        matters or questions such subcommittee is authorized to 
        investigate and study which they or any of them may have in 
        their custody or under their control.
            (9) To make to the Senate any recommendations, including 
        recommendations for criminal or civil enforcement, which the 
        special subcommittee may consider appropriate with respect to--
                    (A) the willful failure or refusal of any person to 
                appear before it, or at a deposition, or to answer 
                interrogatories, in obedience to a subpoena or order;
                    (B) the willful failure or refusal of any person to 
                answer questions or give testimony during his 
                appearance as a witness before such subcommittee, or at 
                a deposition, or in response to interrogatories; or
                    (C) the willful failure or refusal of--
                            (i) any officer or employee of the United 
                        States Government,
                            (ii) any person or entity purporting to act 
                        under color or authority of State or local law, 
                        or
                            (iii) any private person, partnership, 
                        firm, corporation, or organization,
                to produce before the subcommittee, or at a deposition, 
                or at any time or place designated by the subcommittee, 
                any book, check, canceled check, correspondence, 
                communication, document, financial record, paper, 
                physical evidence, photograph, record, recording, tape, 
                or any other material in obedience to any subpoena or 
                order.
            (10) To procure the temporary or intermittent services of 
        individual consultants, or organizations thereof.
            (11) To use on a reimbursable basis, with the prior consent 
        of the Government department or agency concerned, the services 
        of personnel of such department or agency.
            (12) To use, with the prior consent of the chairman or 
        ranking member of any other Senate committee or the chairman or 
        ranking member of any subcommittee of any committee of the 
        Senate, the facilities or services of the appropriate members 
        of the staff of such other Senate committee whenever the 
        special subcommittee or either cochairman consider that such 
        action is necessary or appropriate to enable the special 
        subcommittee to make the investigation and study provided for 
        in this resolution.
            (13) To have access through the agency of any members of 
        the special subcommittee, staff director, chief counsel, or any 
        of its investigatory assistants designated by either 
        cochairman, to any data, evidence, information, report, 
        analysis, document, or paper--
                    (A) which relates to any of the matters or 
                questions which the special subcommittee is authorized 
                to investigate or study;
                    (B) which is in the possession, custody, or under 
                the control of any department, agency, entity, officer, 
                or employee of the United States Government, including 
                those which have the power under the laws of the United 
                States to investigate any alleged criminal activities 
                or to prosecute persons charged with crimes against the 
                United States without regard to the jurisdiction or 
                authority of any other Senate committee; and
                    (C) which will aid the special subcommittee to 
                prepare for or conduct the investigation and study 
                authorized and directed by this resolution.
            (14) To report violations of any law to the appropriate 
        Federal, State, or local authorities.
            (15) To expend, to the extent the special subcommittee 
        determines necessary and appropriate, any money made available 
        to such subcommittee by the Senate to make the investigation, 
        study, and reports authorized by this resolution.
            (16) Under sections 6103(f)(3) and 6104(a)(2) of the 
        Internal Revenue Code of 1986, to inspect and receive for the 
        fiscal years 1977-1992 any tax return, return information, or 
        other tax-related material, held by the Secretary of the 
        Treasury, related to individuals and entities named by the 
        special subcommittee as possible participants, beneficiaries, 
        or intermediaries in the transactions under investigation.
    (d) The level of compensation payable to any employee of the 
special subcommittee shall not be subject to any limitation on 
compensation otherwise applicable to an employee of the Senate. No 
employee of the special subcommittee may receive pay at a rate of pay 
in excess of the rate of pay payable for a position at level III of the 
Executive Schedule under section 5314 of title 5, United States Code.

                 protection of confidential information

    Sec. 6. (a) All staff members and consultants shall, as a condition 
of employment, agree in writing to abide by the conditions of an 
appropriate nondisclosure agreement promulgated by the special 
subcommittee.
    (b) The case of any Senator who violates the security procedures of 
the special subcommittee may be referred to the Select Committee on 
Ethics of the Senate for the imposition of sanctions in accordance with 
the rules of the Senate. Any staff member or consultant who violates 
the security procedures of the special subcommittee shall immediately 
be subject to removal from office or employment with the special 
subcommittee or shall be subject to such other sanction as may be 
provided in the rules of the special subcommittee.
    (c) Upon the termination of the special subcommittee pursuant to 
section 9 of this resolution, all records, files, documents, and other 
materials in the possession, custody, or control of the special 
subcommittee, under appropriate conditions established by such 
subcommittee, shall be transferred to the National Archives.

                    relation to other investigations

    Sec. 7. (a) In order to--
            (1) expedite the thorough conduct of the investigation and 
        study authorized by this resolution;
            (2) promote efficiency among all the various investigations 
        underway in all branches of the United States Government; and
            (3) engender a high degree of confidence on the part of the 
        public regarding the conduct of such investigation,
the special subcommittee is encouraged--
            (A) to coordinate, to the extent practicable, its 
        activities with the investigation of the independent counsel;
            (B) to seek the full cooperation of all relevant 
        investigatory bodies; and
            (C) to seek access to all information which is acquired and 
        developed by such bodies.
    (b) The cochairmen shall meet with the independent counsel to 
obtain relevant information concerning the status of the independent 
counsel's investigation to assist in establishing a hearing schedule 
for the special subcommittee.
    (c) The Senate requests that the independent counsel make available 
to the special subcommittee, as expeditiously as possible, all 
documents and information which may assist the special subcommittee in 
its investigation and study.

                         salaries and expenses

    Sec. 8. Such sums as are necessary shall be available from the 
contingent fund of the Senate out of the Account for Expenses for 
Inquiries and Investigations for payment of salaries and other expenses 
of the special subcommittee under this resolution, which shall include 
sums which shall be available for the procurement of the services of 
individual consultants or organizations thereof, in accordance with 
section 5(c)(9). Payment of expenses shall be disbursed upon vouchers 
approved by either cochairman of the special subcommittee, except that 
vouchers shall not be required for the disbursement of salaries paid at 
an annual rate.

                          reports; termination

    Sec. 9. (a)(1) The special subcommittee shall make a final public 
report to the Senate of the results of the investigation and study 
conducted by such subcommittee pursuant to this resolution, together 
with its findings and any recommendations at the earliest practicable 
date.
    (2) The final report of the special subcommittee may be accompanied 
by whatever confidential annexes are necessary to protect confidential 
information.
    (b) After submission of its final report, the special subcommittee 
shall conclude its business and close out its affairs as expeditiously 
as practicable.

                 subcommittee jurisdiction and rule xxv

    Sec. 10. The jurisdiction of the special subcommittee is granted 
pursuant to this resolution notwithstanding the provisions of paragraph 
1 of rule XXV of the Standing Rules of the Senate relating to the 
jurisdiction of the standing committees of the Senate.

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