Paper Drafted by Mrs. Clinton Helped Partners, Report Says

Federal regulators concluded Monday that a real estate document drafted by Hillary Rodham Clinton in 1986 was used by her Whitewater partners’ savings and loan to evade regulations.

In a report requested by Senate Republicans, the Federal Deposit Insurance Corp. made no direct accusations against the first lady, but it raised more questions about her role in a troubled Arkansas real estate development.

The FDIC inspector general’s office described how executives at Madison Guaranty Savings & Loan, which was headed by James B. and Susan McDougal, arranged for Little Rock businessman Seth Ward to receive $300,000 for his role in the Castle Grande land development. Ward is the father-in-law of Webster L. Hubbell, Mrs. Clinton’s onetime law partner.

The regulators said Mrs. Clinton drafted a real estate option that valued Ward’s property at $400,000, more than double its appraised value. Ward later exchanged the land for $300,000 in loan proceeds from the S&L.;

Mrs. Clinton has said she does not recall working on the document.