The Whitewater scandal was a real estate controversy that came to public attention in the s. It involved former President Bill Clinton and his wife Hillary along with their associates.
Whitewater was a land development venture that turned into a failed investment. After a series of lengthy investigations into the matter—famously led by Independent Counsel Kenneth Starr—the Clintons were never formally charged with a crime, although several of their Whitewater associates fared quite differently.
When Bill Clinton was elected as governor of Arkansas in , he and Hillary who was an associate at a law firm began looking for ways to boost their income. James McDougal approached the Clintons to join the venture with him and his wife, Susan, and they agreed. William Fulbright. Both couples agreed to purchase acres of land in the Ozark Mountains of Arkansas that would become the Whitewater Development Corporation.
Under the deal, they would create individual lots to sell as vacation homes , attracting people who were interested in fishing and other outdoor activities. However, there were several problems that ruined their plans. The land wasn't very accessible and there was a lasting impact from flooding in the area. There were also the pressures of the economic cycle with interest rates on the rise. This meant potential investors and those interested in a second home could no longer afford to purchase a property.
Bill Clinton was elected governor a short time later in James McDougal subsequently entered the banking industry in , forming Madison Guaranty Savings and Loan two years later. But it wasn't actually the investment venture between the Clintons and the McDougals that caused the controversy.
