Campaign in Crisis? Hillaryland Tensions

Feb. 14, 2008 — -- After losing eight straight presidential nominating contests, campaign staff shake-ups, and fundraising problems last month, Sen. Hillary Clinton's campaign is facing tension within its ranks.

Numerous Clinton campaign insiders tell ABC News there is unhappiness inside the Virginia headquarters right now, with staffers aligning themselves into factions.

One source said there is "increasing frustration" with Mark Penn, Clinton's campaign strategist and pollster, and the closest thing to a Karl Rove-type figure within the campaign.

Some are unhappy that former Clinton campaign manager Patti Solis Doyle was replaced last weekend with Maggie Williams, the senator's former White House chief of staff.

Clinton's deputy campaign director Mike Henry, who was loyal to Solis Doyle, resigned from the campaign Monday, writing in his farewell letter to the staff that he was stepping aside out of respect for the "new leadership team."

Two other staffers from the campaign's Internet operation have also left the campaign this week.

Overall, there is a sense of melancholy in the Clinton campaign, and among some a "lack of confidence" in leadership.

Clinton campaign insiders confirm that when campaign advisers gathered at headquarters last week to preview a television commercial called "Free Fall" — this is the scene that unfolded, as first reported in today's Wall Street Journal:

"Your ad doesn't work," Penn said to ad maker Mandy Grunwald.

Grunwald fired back that the problem was maybe his message, not the ad.

The clash got so heated that political director Guy Cecil left the room, saying, "I'm out of here." the Wall Street Journal reported this morning.

Clinton campaign insiders tell ABC News the shouting match happened as reported, and while this was an extraordinarily heated exchange, it's not uncommon for Penn and Grunwald to bicker.

"They're constantly at each other's throats," said one campaign source.