The Whitewater Conspiracy
In today's society people often pay close attention to what happens in politics. They normally make voting decisions on character, past work, and partisan lines. When rumors of indiscretion or impropriety of a public official pops up, people often like to get involved. Like gossiping on the church's rumor grapevine, people love to get involved in conspiracies and scandals dealing with people of power. If you have watched television at all in the last ten years, you have probably heard about Whitewater. Whitewater is the investigation into Bill Clinton's life before he became president. This alleged conspiracy goes much deeper though than just a crooked land deal. It has its fingers into power and manipulation and even death.
The conspiracy starts with a real estate deal twenty years ago. According to the Washington Post, in 1978, then-Arkansas Attorney General Bill Clinton and his wife, Hillary, joined a 50/50 partnership with James and Susan McDougal to buy 220 acres of riverfront land and form the Whitewater Development Corp. James McDougal and Clinton had become acquainted in 1968 when they worked for the re-election campaign of U.S. Sen. F. William Fulbright.
The goal was easy. All they had to do was sell lots for vacation homes. The deal was initially described as a sweetheart deal for Bill and Hillary Clinton. The partners would borrow money to buy land in northern Arkansas along the White River, divide the property into lots, and sell them for a profit.
James McDougal also owned a savings and loan association called Madison Savings and Loan. The Clintons' relationship with McDougals eventually involved them with Madison Savings and Loan. McDougal hired the Rose law firm in which Hillary Clinton worked along side of Vince Foster. McDougal claims he hired them at the urging of now Governor Clinton, who wanted to help Mrs. Clinton drum up business. The president denies the claim.
Some Clinton associates clearly broke the law during these years in Arkansas. The McDougals, most notably, were both found guilty of fraud.
Hillary Clinton represented the S&L before the State Securities Department, headed by Clinton appointee Beverly Bassett Schaffer, who also once represented Madison as an attorney. Schaffer approved an unusual stock sale to help save the troubled Madison, despite federal complaints about McDougal's business practices. Federal investigators looked into those actions, which are central to the allegation that the Clintons helped keep Madison open long after it was broke, as a favor to McDougal.
According to CNN.Com Madison collapsed in the mid-1980s, leaving American taxpayers with a $68 million bailout bill. However, The Rose law firm that Hilary worked for, having once represented Madison, then represented the government in the case. In 1989, McDougal was indicted on charges of bank fraud and other violations related to Madison's failure. He was later acquitted in...