John Latham (Whitewater)
Encyclopedia
John Latham is a former CEO of Madison Guaranty
that came into front page national news as a result of the Whitewater
investigations.
Madison Guaranty was owned and operated by James
and Susan McDougal
. On February 7, 1985 Jim McDougal wrote to Gov. Bill Clinton
to recommend Latham for the Arkansas
State Savings and Loan Board. Richard Massey
, a friend of Latham, helped connect Madison Guaranty
and the Rose Law Firm
to help with legal matters. Hillary Clinton also worked with Latham during this period. On July 11, 1985 an internal memo from Jim McDougal to John Latham stated, "I need to know everything you have pending before the Securities Commission
as I intend to get with Hillary Clinton within the next few days." On July 11, 1986 the FHLBB told Madison Guaranty's board of directors
to remove John Latham because the S&L
's troubles had grown worse. John Latham became part of Kenneth Starr
's investigation into the Whitewater land deal. John Latham attempted to hide from federal bank examiners a $500,000 insider loan, with a nonrecourse debt
that had been made to take a warehouse not on Madison's books
. He was jailed six months for bank fraud
.
Madison Guaranty
Madison Guaranty was a Little Rock, Arkansas financial trust company.Starting in 1982 and operated by Jim McDougal-Susan McDougal Madison Guaranty Savings and Loan failed in the late 1980s. On April 14, 1997, Jim McDougal was convicted of 18 felony counts of fraud conspiracy charges...
that came into front page national news as a result of the Whitewater
Whitewater (controversy)
The Whitewater controversy was an American politics controversy that began with the real estate investments of Bill and Hillary Clinton and their associates, Jim and Susan McDougal in the Whitewater Development Corporation, a failed business venture in the 1970s and 1980s.A New York...
investigations.
Madison Guaranty was owned and operated by James
Jim McDougal
James B. "Jim" McDougal , a native of White County, Arkansas, and his wife, Susan McDougal , were financial partners with Bill Clinton and Hillary Rodham Clinton in the real estate venture that led to the Whitewater political scandal of the 1990s...
and Susan McDougal
Susan McDougal
Susan McDougal is one of the few people who served prison time as a result of the Whitewater controversy although fifteen individuals were convicted of various federal charges...
. On February 7, 1985 Jim McDougal wrote to Gov. Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
to recommend Latham for the Arkansas
Arkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
State Savings and Loan Board. Richard Massey
Richard Massey
Dr. Richard Massey is a physicist currently working as an STFC Advanced Fellow at the Institute for Astronomy of the University of Edinburgh...
, a friend of Latham, helped connect Madison Guaranty
Madison Guaranty
Madison Guaranty was a Little Rock, Arkansas financial trust company.Starting in 1982 and operated by Jim McDougal-Susan McDougal Madison Guaranty Savings and Loan failed in the late 1980s. On April 14, 1997, Jim McDougal was convicted of 18 felony counts of fraud conspiracy charges...
and the Rose Law Firm
Rose Law Firm
Rose Law Firm is headquartered in Little Rock, Arkansas. It is the oldest law firm in the United States west of the Mississippi River and the third oldest in the United States....
to help with legal matters. Hillary Clinton also worked with Latham during this period. On July 11, 1985 an internal memo from Jim McDougal to John Latham stated, "I need to know everything you have pending before the Securities Commission
Securities Commission
Securities Commission a statutory body entrusted with the responsibility of regulating and systematically developing the capital markets in Malaysia.-History:...
as I intend to get with Hillary Clinton within the next few days." On July 11, 1986 the FHLBB told Madison Guaranty's board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
to remove John Latham because the S&L
Savings and loan association
A savings and loan association , also known as a thrift, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans...
's troubles had grown worse. John Latham became part of Kenneth Starr
Kenneth Starr
Kenneth Winston "Ken" Starr is an American lawyer and educational administrator who has also been a federal judge. He is best known for his investigation of figures during the Clinton administration....
's investigation into the Whitewater land deal. John Latham attempted to hide from federal bank examiners a $500,000 insider loan, with a nonrecourse debt
Nonrecourse debt
Non-recourse debt or a non-recourse loan is a secured loan that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender/issuer can seize the collateral, but the lender's recovery is limited to the...
that had been made to take a warehouse not on Madison's books
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
. He was jailed six months for bank fraud
Bank fraud
Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense...
.