Majority Report
Of The Special Committee
To Investigate Whitewater
Development Corporation
And Related Matters

PHASE 2 THE WASHINGTON PHASE

CONTENTS

CONCLUSIONS OF THE SPECIAL COMMITTEE

1. By mid-1993, the Clintons and their associates had already taken steps to minimize their potential liability from investigations of Whitewater and Madison Guaranty.
2. The White House concealed damaging evidence about Whitewater and Travelgate from career law enforcement officials investigating Vincent Foster's death.
3. Senior White House officials improperly gathered confidential information about investigations involving Whitewater and Madison Guaranty.
4. A pivotal event: senior White House officials and private counsel for the Clintons participate in an improper Whitewater defense meeting.
5. Senior White House officials did not pass the torch to the Clintons' new private counsel, but continued to take highly improper steps to advance the Clintons' private interests.
6. Senior White House officials held formal "Whitewater Response Team" meetings to protect the Clintons' private interests in ongoing federal investigations.
7. In early 1994, senior White House officials sought to manipulate the RTC investigation of Madison Guaranty and the Rose Law Firm.
8. Jay Stephens was removed from the investigation of possible civil claims against parties associated with Madison Guaranty, including the Clintons.
9. Senior RTC officials sought to impede the criminal investigation of Madison.
10. U.S. Attorney Paula Casey mishandled the RTC criminal referral referencing the President and Mrs. Clinton.
11. Senior Administration officials improperly sought to manipulate the investigation of the RTC and Treasury Inspectors General into the propriety of White House-Treasury contacts.
12. The White House delayed in producing documents to the Special Committee.
13. Senior Administration officials provided inaccurate and incomplete testimony to the Senate.
14. The Office of the White House Counsel was frequently and improperly put in the service of the personal legal interests of the President and Mrs. Clinton.
CONCLUSIONS OF THE SPECIAL COMMITTEE ON THE DISCOVERY OF THE ROSE LAW FIRM BILLING RECORDS

1. The Rose billing records provide the best evidence of the legal services performed by Mrs. Clinton for Madison Guaranty.
2. The disappearance and mysterious reappearance of the Rose Law Firm billing records was part of a larger patten of removal, concealment and, at times, destruction of records concerning Mrs. Clinton's representation of Madison.
3. Vincent Foster is the last person known to have the billing records in his possession.
4. The billing records mysteriously reappear in the Book Room of the White House Residence in August 1995.
5. Only a limited number of people had access to the Book Room of the White House Residence.
6. Very few people had motive to be handling or reading the Rose billing records in August 1995.
7. Only a limited number of people were definitely within the chain of custody of the billing records.
8. Mrs. Clinton is more likely than any other known individual to have placed the billing records in the Book Room in August 1995.

BACKGROUND
I. Whitewater Development Corporation and Madison Guaranty S&L
II. Capital Management Services and David Hale
SUMMARY OF THE EVIDENCE
PART I: THE HANDLING OF FEDERAL INVESTIGATIONS
I. Mrs. Clinton Learns of the RTC Criminal Referral on Madison


A. The RTC begins its criminal investigation of Madison.
B. The first RTC criminal referral: C0004.
C. Betsey Wright informs Mrs. Clinton of the RTC criminal referral


II. Criminal Referral C0004 Languishes at the Justice Department


A. The U.S. Attorney sends Criminal Referral C0004 to the main Justice Department
B. Criminal Referral C0004 gets lost at the Justice Department


III. Interference with the RTC's Ongoing Investigation of Madison


IV. Paula Casey Delays her Recusal from Madison, Handles the Hale Pleas Negotiations, and Declines to Prosecute Criminal Referral C0004


A. Investigations of Capital Management and David Hale
B. Plea Negotiations with David Hale.
C. Ms. Casey's declination of Criminal Referral C0004.


PART II: WHITE HOUSE INTERVENTION IN FEDERAL INVESTIGATIONS


I. White House Contacts Relating to Investigations of Madison and David Hale.


A. The White House receives information on the ongoing SBA investigation of Mr. Hale.
B. Mr. Hale's lawyers contact the White House about Mr. Hale's "mutual interest" with President Clinton
C. The White House obtains more information about the Hale investigation.


After Treasury and RTC Officials improperly advised the White House about RTC Referrals mentioning President Clinton and Governor Tucker, President Clinton meets with Governor Tucker at the White House.


III. A Pivotal Event: The November 5, 1993 Meeting Between White House Officials and the Clintons' Private Lawyers.


IV. The White House Obtains Confidential SBA Documents Relating to Mr. Hale and Capital Management


V. The White House Begins to Hold Whitewater Defense Meetings


A. Senior White House officials debated the appointment of a Special Counsel
B. White House contacts with former Arkansas Securities Commissioner Beverly Bassett Schaffer
C. The Whitewater Response Team assigns defense tasks to White House officials


VI. The Retention and Investigation of Pillsbury Madison & Sutro


A. The White House expresses concern over the retention of Jay Stephens
B. Mr. Stephens is removed from the RTC investigation
C. The White House makes inaccurate claims about the Pillsbury report


PART III. WHITE HOUSE INTERFERENCE WITH CONGRESSIONAL INQUIRIES


I. Mr. Ickes Provided Incomplete and Inaccurate Testimony to the Senate Banking Committee


II. The White House Interfered with Treasury IG and RTC IG Investigations into White House-Treasury Contacts.


A. Independence of IG investigation is compromised
B. Confidential information is provided to the White House


III. The White House Interfered with the Special Committee's 1995-96 Investigation


A. The refusal of William Kennedy to comply with the Special Committee's subpoena for his notes of the pivotal November 5, 1993 White House defense meeting.
B. White House delays in producing highly relevant documents to the Special Committee


PART IV. THE ROSE LAW FIRM BILLING RECORDS


I. The Destruction and Mishandling of Rose Law Firm Files.


II. The "Disappearance" and "Discovery" of the Rose Law Firm Billing Records


III. Mrs. Clinton's Statements in Light of the Rose Law Firm Billing Records


A. Madison's retention of the Rose Law Firm
B. Mrs. Clinton's contacts with regulator Beverly Bassett Schaffer
C. Mrs. Clinton's role in Madison's proposed preferred stock deal
D. Mrs. Clinton's role in the Castle Grande transaction


IV. The Federal Investigations into the Rose Law Firm's Representation of Madison


V. The Special Committee's Investigation into the Circumstances Surrounding the Discovery of the Rose Law Firm Billing Records


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