WASHINGTON - Rep. Toby Roth, R-Wis., demanded a congressional investigation of the government's handling of a failed Arkansas savings and loan and its owner's ties to President Clinton and his wife.

According to published reports, a federal investigation of Madison Guaranty, a failed Arkansas savings and loan, is raising questions about ties between the institution's owner, Mr. James McDougal, and both President Clinton and Mrs. Clinton," Rep. Roth wrote on Friday to Rep. Floyd Flake, D-N.Y., who is chairman of the House Banking subcommittee on general oversight, investigations, and resolution of failed institutions, on which Rep. Roth also sits.

"The government evidently failed to detect the questionable operations of Madison Guaranty," Rep. Roth wrote. "If this involved a Republican president and his wife, you can bet that the Democrat-controlled Congress would be up in arms."

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