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Whitewater now seems destined to dog the Clintons throughout this election year. In Little Rock last week, Jim and Susan McDougal, along with Arkansas Governor Jim Guy Tucker, began to stand trial on felony charges brought by independent counsel Kenneth Starr; they are accused of fraud, conspiracy and making or causing to be made false statements to a financial institution. When Hillary Clinton testified before a grand jury last January, she made history: never before had a First Lady been summoned to do that. A memo that had been subpoenaed two years ago by independent counsel Robert Fiske was discovered...
Many of the events described in this excerpt are being investigated by independent counsel Starr. The bankers in Flippin, Arkansas, involved in the Whitewater loan, for example, have testified before the grand jury and have been instructed by Starr's staff not to speak about what they know. The Clintons' and McDougals' activities in Whitewater, involving federally regulated banks, savings and loans, federal taxes, favors bestowed and accepted, are areas covered by a network of criminal and civil laws. Under federal law Title 18, section 1344, for example, it may be a crime to submit a false financial-disclosure statement...
...McDougal and prepared to send it to the White House. Lawyers for the President say they will advise Clinton to give his testimony on videotape or via a satellite conference call. The McDougal lawyers, meanwhile, are still trying to have Clinton appear in person. The critical question prosecutor Kenneth Starr would explore with the President: whether he pressured former municipal judge David Hale to approve a $300,000 loan to Susan McDougal, the Clinton's Whitewater business partner. Clinton has in the past called the charges 'a bunch of bull.' "In a way, this is good for Clinton," says TIME...
...lawyer wants Clinton to come in and testify to exonerate her, to say that he never pressured David Hale into giving her that $300,000 loan. But what they want to avoid at all costs is to have Clinton take the stand and be cross-examined by Kenneth Starr. If that would happen, Starr could ask him under oath anything related to the investigation. The wording of the order from U.S. District Judge George Howard, Jr. gives the President an opening to avoid live testimony. In any case, it's highly unlikely that you'd see the President flying down...
...First Lady and Mr. Clinton on the reasonable assumption of possible obstruction of justice." That may be premature, since in addition to the Clintons, the book room is accessible to guests, some servants and Huber herself. But the list is finite, the White House keeps a guest log, and Starr is said to have the fbi dusting the printouts for fingerprints...