THE guilty verdicts on former friends and business associates of President Clinton and Ms Hillary "Clinton in the Whitewater trial have damaged them politically but they are hoping not enough to prevent them staying on in the White House after the November election.
The verdicts have given a boost to the lacklustre campaign by the Republican candidate, Senator Bob Dole, who is making "character" failing of the President one of his main campaign planks.
The Clintons' one time close association with people now seen as involved in widespread fraud and an expensive bank failure costing the taxpayers $65 million (£42 million) can only damage the Presidential campaign, even Democrats concede.
While the Clintons were not on trial, the President's testimony by video link for two of the defendants, James McDougal and his former wife, Susan, could not save them from being found guilty of 22 felony charges. This will be perceived that the President's word was not persuasive enough to a jury in his own state, observers said.
The third defendant, Jim Guy Tucker, succeeded Mr Clinton as Democratic Governor of Arkansas and while a political rival was also a friend of the Clintons. He has announced his resignation to fight an appeal.
A clearly shaken President briefly met the press after the verdicts but would only say that he felt "very sorry" for the defendants. Asked if he felt that the jurors had disbelieved his testimony, the President replied: "You ought to ask them that."
In an interview before the verdicts were announced, Ms Clinton insisted that there was nothing "at stake" for them in the outcome. She was resigned to the fact that "so much of this is politically inspired, it will go on almost regardless of what happens".
She revealed the extent of the pressure on her caused by the various Whitewater inquiries when she said that she was afraid to keep a diary of her White House years because it "could get subpoenaed - I can't write anything".
The main problem for the Clintons is that the Whitewater verdicts now give an unwelcome boost to the other inquiries which the illfated venture in real estate investment back in the 1970s has spawned. Next month, a new trial opens in which President Clinton will again be called to give testimony in defence of two bankers charged with illegally funnelling money to his 1990 campaign to be re elected, Governor.
A Senate investigating committee into other aspects of Whitewater, such as the suicide of Vincent Foster, a senior legal White House staffer and close friend of Ms Clinton; her work as a lawyer in Arkansas for the McDougal bank; and her role in the controversial firing of the travel office staff in the White House, has now been given new life. A House of Representatives committee is also investigating some of these aspects.
"The fire will move even closer to the First Couple if the congressional committees succeed in calling another convicted Whitewater felon, David Hale, to give evidence. Hale, who was convicted in an earlier trial, was the chief prosecution witness against the McDougals and Tucker and he was the one who tried to drag President Clinton into the murky dealings.
One of the charges against Ms McDougal related to an illegal loan which Hale claimed he made to her following pressure from Mr Clinton while he was Governor of Arkansas. The President dismissed this claim as a "load of bull" and the forewoman of the jury has said it did not influence their verdict, which was based largely on the documentary evidence.
The Republican dominated Congressional committees are anxious to question Hale on his claim that Mr Clinton pressurised him to give an illegal loan of $30,000. So far Hale has refused to testify to the committees but he will now come under renewed pressure.
It is too soon to say how badly the President and Mrs Clinton are damaged by the disgrace of the McDougal. Until now, the public has been bored by the complexities of Whitewater but these verdicts show that it is not just Republican propaganda.
The biggest danger for the Clintons is that they may be shown to be involved in a cover up, especially regarding Mrs Clinton's work for the McDougal bank at one stage. The original Whitewater investment by the Clintons back in 1978 when they were struggling lawyers is not seen as the main issue.
It is their subsequent actions as it became gradually clear that the McDougals were getting into dubious banking transactions that are now under scrutiny. The Clintons only ended their partnership with the McDougals in the original Whitewater investment in 1992 after he was elected President and after most of the frauds by the McDougals had taken place.
The Clintons have always insisted that they left the running of the Whitewater investment to the McDougals but they have twice been forced to a illegal tax deductions on their investment.