Whitewater Whitewater

About Whitewater Whitewater

Whitewater was a failed real estate investment involving Bill and Hillary Clinton. The Clintons partnered with Jim and Susan McDougal in the Whitewater Development Corporation in 1978. McDougal also owned Madison Guaranty Savings and Loan, which failed at a cost of 60 million to taxpayers. The Whitewater investigation, led by Special Counsel Kenneth Starr, expanded into a broad investigation of the Clintons. Susan McDougal served 18 months in prison for contempt for refusing to testify. Jim McDougal was convicted of fraud and died in prison. The Clintons were never charged with any crime related to Whitewater. The investigation eventually led to the Monica Lewinsky scandal and Clintons impeachment. The case illustrates how a real estate failure can spiral into political crisis.