Clinton Treasury Aide in Early Briefing on Failed S&L; : Ethics: Political appointee Altman was told Arkansas thrift case would go to Justice Dept. He also is a regulator, raising conflict problem.

Deputy Treasury Secretary Roger Altman was told in advance by a top federal regulator that the investigation into the failed Madison Guaranty Savings & Loan would be referred to the Justice Department for possible prosecution.

There is no indication that Altman tipped off the White House about the looming criminal referral. The session predates Treasury general counsel Jean E. Hanson’s controversial Sept. 29 meeting with then-White House Counsel Bernard Nussbaum, in which she alerted the White House to the pending referral from the Resolution Trust Corp.

Altman received the briefing from William Roelle, a top official of the RTC, and Hanson, senior Treasury officials say. The two told Altman that a criminal referral in the Madison case “was coming to the surface” within the RTC. The RTC asked the Justice Department to begin a criminal probe on Oct. 8.

The Altman session is the earliest known briefing for a top Administration official on the Madison case, which is part of special counsel Robert B. Fiske Jr.’s investigation into President Clinton and Hillary Rodham Clinton’s Whitewater Development Corp. real estate investment in Arkansas.

But the briefing highlights the possible conflict between Altman’s dual roles as acting chief executive officer of the RTC, an independent regulatory agency, and as a Clinton political appointee at the Treasury Department. Altman is a college classmate of Clinton and campaign adviser to him in 1992.

Altman described the briefing as a five-minute conversation that occurred during a meeting called to discuss the Treasury’s investigation of the Bureau of Alcohol Tobacco and Firearm’s handling of the Branch Davidian tragedy in Waco, Tex. He said Hanson took the initiative to tell him that the RTC was about to issue its criminal referral in the Madison case.

The officials stress that the substance of the criminal case was not discussed with Altman. In Hanson’s meeting with Nussbaum, she told him that the Clintons would be mentioned as possible beneficiaries of illegal actions related to the Madison case.

Altman has been under fire from Republicans in Congress for a meeting he held with Nussbaum last month to discuss the Madison case and has recused himself from any further involvement.

He also has effectively ended all day-to-day responsibility for the RTC and plans to step down as the RTC’s acting chief executive on March 30.

Altman stressed in an interview with The Times that he told the RTC to handle the case of Madison Guaranty just as it would any other criminal matter, and that he in no way intervened.

Steve Katsanos, a spokesman for the RTC, says that the briefing was “routine” because of Altman’s role as acting head of the RTC.

Altman said he did not know Hanson planned to tell the White House about the case.

Hanson’s decision to brief the White House has been questioned by congressional Republicans who say it shows the case has been subject to high-level political interference.

Her meeting with Nussbaum was the first of three Whitewater-related sessions between Treasury and White House officials that are also now the subject of the Fiske’s investigation. Even Treasury officials concede that Hanson’s meeting with Nussbaum is the most troubling of the three meetings. Hanson was unavailable for comment.

Altman, Hanson and Treasury chief of staff Josh Steiner are all scheduled to appear before the Whitewater grand jury this week to testify about the meetings, sources said.

News of the earlier meeting comes just as Altman and Treasury are being inundated with questions about Whitewater. The controversy has fueled rumors, repeatedly denied by Treasury officials, that both Treasury Secretary Lloyd Bentsen and Altman were on the verge of resigning.

Yet Altman insists that he won’t let the cloud of suspicion now hanging over him deter him from keeping up with his work. And he says he will not resign, telling people that they will have to “carry him out feet first.”

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