Whitewater scandal

The Whitewater scandal was an American political scandal which developed in Bill Clinton's first term as president, after the death of deputy White House counsel Vincent Foster. After Foster's death it was learned that chief White House counsel Bernard Nussbaum had removed documents concerning the Whitewater Development Corporation from Foster's office. President Clinton and his wife had invested in this corporation; the Clintons were accused of fraud in connection with this investment during the U.S. Securities and Exchange Commission's investigation of the bankruptcy of Madison Guaranty, an Arkansas trust company.

The scandal

Relating to the Whitewater failure and the Clintons' legal involvement with Castle Grande, they were repeatedly questioned by reporters about the fiasco following Bill Clinton's bid for the presidency. Early in Clinton's presidency, one of his attorneys Vince Foster committed suicide (July 23, 1993). Documents regarding Clinton's personal information were then removed from Foster's office, reigniting an investigation.

Related Topics:
Vince Foster - July 23 - 1993

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At Clinton's request, a special prosecutor was appointed in 1994 by the Department of Justice to investigate the legality of Whitewater transactions. Two further accusations then surfaced: that Clinton had exerted pressure on a Little Rock, Arkansas businessman to make a loan that would benefit him and the owners of Madison Guaranty, and that an Arkansas bank had concealed transactions involving Clinton's gubernatorial campaign in 1990.

Related Topics:
Special prosecutor - 1994 - Department of Justice - 1990

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The Clintons were cleared of any wrongdoing in two reports subsequently prepared by the San Francisco law firm of Pillsbury Madison and Sutro for the Resolution Trust Corporation, which was overseeing the bankruptcy of Madison Guaranty.

Related Topics:
San Francisco - Pillsbury Madison and Sutro - Resolution Trust Corporation

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When the Whitewater scandal first surfaced, Attorney General Janet Reno appointed a special prosecutor to investigate the matter. The prosecutor, Robert Fiske (a Republican and former United States Attorney) was subsequently replaced by independent counsel Kenneth Starr when the investigation was transferred to the jurisidiction of the Office of the Independent Counsel. Independent counsels are appointed by a panel of federal judges, to avoid a potential conflict of interest by the Attorney General (a Presidential political appointee).

Related Topics:
Attorney General - Janet Reno - Special prosecutor - Robert Fiske - Republican - Independent counsel - Kenneth Starr - Federal judges

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On January 26, 1996 Hillary Clinton testified before a grand jury concerning her investments in Whitewater.

Related Topics:
January 26 - 1996 - Grand jury

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Three associates, James McDougal, Susan McDougal, and Arkansas Governor Jim Guy Tucker were convicted on several federal charges not directly related to the Clintons in 1996.

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