WASHINGTON -- The. Resolution Trust Corp. iS pursuing broad inquiry into the Rose Law Firm's work for the agency, the RTC said Tuesday.
The investigation began by looking into allegations that the Little Rock firm had not properly disclosed its work for failed Madison Guaranty Savings and Loan when it signed on to represent the RTC in a suit against Madison's former accounting firm.
But Tuesday, the RTC disclosed that the investigation has been expanded to cover all work Rose did f0r the-agency.
"We are in fact investigating any conflicts," said Patricia Black, the RTC counsel to. the inspector general. "The firm did quite a bit of work for the RTC beyond Madison."
The agency has paid Rose more than $2 million for legal Work since 1989, Ms. Black said.
As part Of the inquiry, the RTC on Friday sued Rose to force it to turn over a list of its clients since 1985 in an effort to learn whether the firm had conflicts of interest when it represented the RTC. A hearing is set for Oct. 20 in U.S. district Court in Washington. Hillary Rodham Clinton was a partner at the firm, as was Webster Hubbell, who was the third-highest Justice Department official under the Clinton administration until his resignation. Mr. Hubbell's father in-law has sued Madison.
The RTC also confirmed that its inspector general would investigate the performance of three Kansas City, Mo. RTC investigators who had raised concerns about the Madison Guaranty matter.
