Whitewater real estate controversy

The Whitewater real estate controversy was the first major scandal linked to Bill and Hillary Clinton, long before the Monica Lewinsky affair and impeachment. It centered on a failed Arkansas real estate investment and raised allegations of financial misconduct, fraud, and political favoritism - although no evidence ever proved the Clintons guilty of any wrongdoing.

What Was "Whitewater"?

• The Whitewater Development Corporation was a real estate investment meant to build vacation homes along the White River in northern Arkansas.


• Investors:
  
  
  
  • Bill and Hillary Clinton (future President and First Lady)
  
  
  • James and Susan McDougal (their friends and business partners).
  
  
  
  


• The business failed, losing money due to high interest rates and poor sales.

The Core Allegations

• The Clintons benefited improperly from loans or illegal activities connected to Madison Guaranty Savings & Loan (owned by James McDougal).


• Political pressure was used to influence regulators or cover up losses.


• Government positions were used for personal financial gain.

The Investigation

• The Resolution Trust Corporation (RTC) first examined Madison Guaranty’s failure in the early 1990s.


• In 1994, an Independent Counsel investigation began under Robert Fiske, later replaced by Kenneth Starr, who expanded the inquiry dramatically.


• The probe uncovered unrelated matters — including the Lewinsky affair, which ultimately led to Clinton’s impeachment.