that letter stated, "we are declining your madison guaranty referral." >> meanwhile, the country wasolding on the other side of the world. on october 3rd, united states army rangers and elite delta force operators had set out on a mission to capture a corrupt warlord in mogadishu, somalia. things went bad fast. the horrific images of what became known as "black hawk down" were broadcast worldwide. while america watched in horror, jean lewis, at the rtc, was still hard at work, sending nine new criminal referrals to the u.s. attorney's office. on halloween day, 1993, the washington postreported on the referrals and their links to the clintons. >> there was nothing standard about the investigation of madison guaranty savings and loan, and i think a lot of that was attributable to the fact it was politically charged, because it identified bill and hillary clinton. >> three days later, associate attorney general webb hubbell, former law partner of hillary clinton, recused himself from all whitewater matters. suddenly, the questions surrounding whitewater were landing on the front page. >

clinton had always said she didn't do much work for madison guaranty.e did almost 60 hours of work. >> that's a lot of time on the castle grande case. but she said, "oh, no. i had nothing to do with it." >> it was very important that the grand jury hear her explanation. >> people were really out to get the clintons, and getting hillary clinton in front of a grand jury sent an important political message. >> as a result, on january 26, 1996, hillary clinton became the first first lady in american history to be called in front of a grand jury. >> the first lady herself made the decision that, "we'll go into the grand jurin a very public way." >> i, like everyone else, would like to know the answer about how those documents showed up after all these years. it would have been certainly to my advantage in trying to bring this matter to a conclusion if they had been found several years ago. >> as mrs. clinton testified about the discovery of her old records, she had no idea that another story had been quietly unfolding within the white house, one that would a

. >> jim mcdougal bought madison guaranty savings & loan, and began engaging in development loans. loans to help people build properties. >> there weren't a lot of rules in place. and you could loan on anything. >> as he did, he got in way over his head and began to engage in corrupt loans. >> suddenly the deregulation dates were open to anyone lending on anything and everything and to everybody. >> the savings & loan revolution freed up a lot of folks to buy into the s&l's and start lending practices you wouldn't see at ordinary banks. >> mcdougal took it from having assets from 3 million to 100 million in a couple of years. he retained 10% in checking accounts. >> i don't think i ever saw a savings & loan as dirty as madison guaranty savings & loan. in terms of total dollar amount, it was a drop in a bucket. the self-dealing that went on there, the conflicts of interest were among the most brazen i had ever seen. >> to raise more funds, jim turned to former little rock municipal judge david hale. >> david hale ran a small business administration lending company and capital manage

. >> jim mcdougal bought madison guaranty savings and loan. >> savings and loans began to drop like flies was this young upstart governor from arkansas. came out of nowhere. >> i still believe in a place called hope. >> president clinton canceled his public schedule after the tragic death of his white house lawyer vincent foster. >> there were all kinds of crazy theories. >> whitewater was complicated. >> the politically smart thing to do became the appointment of an independent counsel. >> the president, today, has directed the attorney general to appoint a special counsel. >> she basically said, "i won't be talking to you again until this is over." >> there were all sorts of

to talk to me and others enables the from the very beginning, this investigation began with madison guarantywater land deal, but from the very beginning it was but a crooked, dirty savings and loan institution madison guarantee which was run by a crony and longtime friend to president clinton and mrs. clinton, a guy named jim mcdougal. pete: hearing a lot about initial investigations now with mueller, robert mueller. are there any similarities speaking here with what happened about these two different investigations? >> well, robert fisk him originally appointed by janet reno was appointed as a special counsel because there was the independent counsel law had expired. congress was in the process of redraft unit, but it hadn't been done yet. so, they hired robert fisk was appointed and he is very similar mueller. he was the regulatory special account on that a lot of the phoenix. says bob mueller. he had a lot of fun for us in the next periods. pete: starts tonight at 8:00 p.m. sorry we have to leave it there. it is called candle listen folks will be watching. stick with us. to everyone else,