Word: mcdougals
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Dates: during 1990-1999
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...essential background is simple enough: the Clintons and McDougals formed Whitewater, a company that tried unsuccessfully to sell land in northern Arkansas for vacation homes, in 1979, Clinton's first year as Governor; it lingered in existence until late last year. In 1989, McDougal's S&L, Madison Guaranty, went broke, costing federal taxpayers $47 million. Madison was regulated by Clinton's state government, while its deposits were insured by the Federal Government...
...MONEY FROM MADISON GUARANTY AND/OR WHITEWATER DIVERTED INTO CLINTON'S CAMPAIGNS FOR GOVERNOR? The RTC is known to have raised this question. The grounds for its suspicions are somewhat less clear. But there is no question that James McDougal was one of Clinton's money raisers. In particular, it is known that he held a fund raiser in 1985 and came up with $35,000 to help repay Clinton for a $50,000 loan that the Governor had made to his own campaign fund the previous year (making personal loans to their campaigns is a common practice among politicians). There...
Other aspects of the Whitewater venture are somewhat odd. To begin with, the Clintons got a half share, although they invested much less than the McDougals (who put in $92,000). The Clintons have claimed to be only "passive" investors who let the McDougals run the show, but that hardly squares with Hillary's known activities. In her 1988 letter requesting power of attorney, she mentions having been actively involved in selling lots. Also, she built, sold and then bought back a model home. It now turns out that Hillary built the house in 1981 with a $30,000 loan...
Then there was an incident in which McDougal in effect swapped 20 Whitewater building lots, almost half the project's total, for little more than a twin- engine Piper Seminole airplane that was later sold for a loss of $13,000. That loss was absorbed by Madison Guaranty's depositors, but federal taxpayers eventually had to pick up the tab through the RTC. Another intriguing factor is that the plane was at one point owned by Seth Ward, the father-in-law of Webster Hubbell, then a law partner of Hillary's and now Reno's top deputy...
...fact, perhaps the least partisan Republican in the House. One reason for the contention: at the start of 1985, Clinton appointed Beverly Bassett Schaffer as head of the state department that regulates S&Ls. Later, Schaffer approved a proposal for an unusual stock sale to shore up McDougal's already troubled S&L. The proposal was presented by none other than Hillary Clinton, acting as attorney for Madison Guaranty. The stock sale, however, never went into effect, and records in the Arkansas state security division show that Schaffer was quite tough on Madison. In the middle of 1986, state...