Later Years
In 1986, Connally filed for bankruptcy as a result of a string of business losses in Houston. In December 1990, Connally and Oscar Wyatt, chairman of the Coastal Oil Corporation, met with President Saddam Hussein of Iraq. Hussein had been holding foreigners as hostages (or "guests" as Hussein called them) at strategic military sites in Iraq. After the meeting Hussein agreed to release the hostages.
Connally was known as an immaculate dresser who wore expensive and stylish suits wherever he went. Biographer Charles Ashman related a story about Connally's carrying a cigarette lighter in his pocket and lighting cigarettes as a courtesy only for very wealthy men who might be inclined to contribute to his political causes or retain him as a consultant on business arrangements.
In one of his last political acts, Connally endorsed then Republican U.S. Representative Jack Fields of Houston in the special election called in May 1993 to fill the vacancy left by U.S. Senator Lloyd Bentsen of Houston. Bentsen was appointed Treasury Secretary in the new administration of Bill Clinton. Fields finished fourth in the special election and left Congress thereafter. Republican Kay Bailey Hutchison, for whom Connally's daughter had been employed in the state treasurer's office, won the seat by a wide margin in the special election runoff against the appointed Democratic Senator Robert Krueger.
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