July 18, 1995 - Part 1
July 18, 1995 - Part 1
(09:40:26) Moving to matters in Arkansas, we will examine whether James McDougal improperly diverted Madison funds to Whitewater or to Governor Clinton's campaign. We will also examine Judge Hale's charges that Governor Clinton asked him to make an improper loan to Mrs. McDougal to prop up Whitewater. The American people have a right to know the truth about these matters. As we turn to the subject of these hearings, the handling of the papers in Mr, Foster's office, I will briefly outline some of the relevant facts developed by the Committee's highly professional staff These facts fall into two categories: Facts that are known and undisputed, and facts that are subject to sharp and vigorous dispute. Let me begin with some facts that are known and undisputed. Vincent Foster was born in Hope, Arkansas in 1945. He was in the same kindergarten class as President Clinton and former White 3 House Chief of Staff Mack McLarty. Vincent Foster was first in his class at the University of Arkansas Law School. He received the highest score on the Arkansas Bar the year that he took that examination. In 1971 Vincent Foster joined the Rose Law Firm in Little Rock. He became a partner in 1973, just 2 years later, From what we know, Vincent Foster was well liked and well respected. Evidently, he placed high value on his professional reputation. His coworkers have described him as careful and precise. At the Rose Law Firm, Vincent Foster formed friendships and professional relationships that profoundly affected his career and future. His partners included Webster Hubbell and Hillary Rodham Clinton. He was a close personal friend of both the President and Mrs. Clinton. After Bill Clinton was elected President, one of the first things he did was to name Vincent Foster to the critical position of Deputy Counsel to the President. Vincent Foster came to Washington. At the White House, Vincent Foster joined a small group of lawyers who worked for the White House. He had an office in the West Wing, not far from the Oval Off-ice. Let's turn to how Whitewater fits into Vincent Foster's story. Although now is not the time to develop the full Whitewater picture, which will be the subject of future Senate hearings, we now know that Vincent Foster played an important role in advising the Clintons about Whitewater. In March 1992, during the Presidential campaign, stories first appeared in the national press raising serious questions about the Clintons' investment in the Whitewater real estate development. The press reported that the Clintons owned 50 percent of Whitewater but that most of their financial losses were covered for by their partner Jim McDougal, who also ran the Madison Guaranty Savings & Loan. The press raised questions about whether then Governor Clinton gave preferential treatment to McDougal's savings and loan. The Clinton campaign responded to these news stories. Vincent Foster, along with others whose testimony you will hear in the coming days, helped gather Whitewater-related documents. Mr. Foster helped to prepare the campaign's response to press inquiries. Another close friend of the Clintons who responded to the Whitewater reports for the campaign was New York lawyer Susan Thomases. But Vincent Foster's involvement with Whitewater did not end with the campaign; it followed right into the White House. At the end of 1992, the Clintons decided to end their investment in Whitewater. Mr. Foster assisted the Clintons in selling their Whitewater investment to James McDougal. Once Vincent Foster became Deputy White House Counsel, he devoted energy and effort to advising the President and the First Lady about how to deal with Whitewater transactions on their 1992 tax returns and mandatory public financial disclosure statements, Mr. Foster spent a lot of time working on the personal financial matters of the Clintons. More was at stake in Whitewater than simple routine tax preparations. Mr. Foster was confronted with some of the difficult and tangled legal arid factual questions that lay at the heart of Whitewater. As you will learn during these 4 hearings, at the time of his death, there were a large number of documents in Vince Foster's office relating to Whitewater and the Clintons' personal finances.