[1] After Clinton's election as president, the bank was the subject of investigations by the United States Congress and special prosecutor Ken Starr as part of the Whitewater controversy.
[2][5] In a 1984 audit, federal regulators found the bank was making unsound loans and noted that if paper losses were realized, Madison would be insolvent.
[2] In August 1986, the Federal Home Loan Bank Board ordered McDougal's removal from management of Madison, although he remained its owner.
[7] On April 14, 1997, Jim McDougal was convicted of 18 felony counts of fraud conspiracy charges as a result of bad loans made by Madison.
On January 4, 1996, Clinton's billing records were found on a table in the White House, which showed that she performed a mere 60 hours of legal work for Madison in 1985 and 1986.