Clinton Defends Friend’s Role in Purchase of House

President Clinton on Thursday defended his reliance on a top Democratic Party fund-raiser to help him and First Lady Hillary Rodham Clinton buy a house in suburban New York as “a legitimate business arrangement.” And he said he understands why other wealthy friends would have shied away from offering similar help, out of legitimate fear that they would be “dragged around” through political and legal controversy.

In a brief appearance before reporters, Clinton said he accepted help from friend Terence McAuliffe--who agreed to guarantee the Clintons’ $1.3-million mortgage by placing an equal amount of his own money in an account with Bankers Trust--only after receiving assurances from the Office of Government Ethics that the assistance “did not constitute a gift under federal law.”

Aides have said the same thing previously, but Thursday was the first time Clinton has addressed the controversy. He also confirmed that he is considering getting out of the McAuliffe-backed loan in favor of a more conventional mortgage before the Nov. 1 closing.

Former White House Chief of Staff Erskine Bowles had backed out of a plan to help with the house financing, and it was also reported that former Treasury Secretary Robert E. Rubin signaled through intermediaries that he did not want to help.