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Government Probe Expands Into Solyndra Bankruptcy

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    Former Whitewater prosecutor Robert Ray with the latest details surrounding the investigation into the solar-panel manufacturer.

  • Duration 5:41
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Breaking news more twists and turns in the so wondrous scandal and -- from inside the beltway folks.

Are openly talking about this mess possibly sticking with the Obama presidency through the election.

And a half billion dollar question of course is was political influence used to keep cylinder on the federal gravy train long after.

The White House knew the company was a loser evidence is growing that industry experts and perhaps people in the White House -- two years ago.

That's a lender had no chance.

Because was making it solar product at a cost four times greater than its Chinese competitors.

And the email trail is growing -- -- more -- damning evidence for the west wing more on that in just a moment but first.

Let's bring in formal back.

Prosecutor Robert Ray He was the independent counsel Whitewater investigation during the Clinton administration He joins us now.

And that's an exclusive interview Robert great to see you thank you for coming and thank you are -- first of all.

If there was something to -- The White House would right now be in this frantic sort of lock down mode do you get any sense that there's something like that happening with the White House right now.

Hard to tell I mean initially you have a public relations issue.

If He has become obviously now political issue there's no question there's a legal problem because there is say.

House investigation.

Apparently there's a treasury IG investigation.

There may well be.

Search warrant that I understand is out there and if that's the case that means the department of justice's involved.

And so the White House to the White House Counsel's Office I imagine at this point is trying to just as you suggest find out what's going on what has of that search -- already been exercised by the FBI we're looking at them taken some papers that is -- -- office yes but it means -- Justice Department's involved and so that ultimately you know depending on how far this goes up and who knew when.

When they knew it and who was involved.

If it involves high level government officials no suggestion at the moment that any crimes have been committed but it does raise questions about who can properly investigate them.

What's one thing -- to service search warrant on a private company it's quite another to servant on the White House however Whitewater prosecutors had to do just such things in the case of Hillary Clinton did the the Monica Lewinsky thing Madison Guaranty.

-- What do investigators do now.

To serve those searchers do we have to have appoint an independent prosecutor for example and does He does He and only He have the authority.

To issue warrants -- could be served in the White House.

Well we're too early to say on that I mean at the moment I imagine the White House is voluntarily complying with congressional requests to produce email.

And so there's no indication that the White House is stonewalling that investigate if they do Begin to stone -- however then.

Who calls for the independent counsel with that -- John Boehner the head of -- that house.

What could it it could have -- -- reverend that we don't have an independent counsel statute any longer so the most that can be said.

Is initially first if there's going to be if there ever was to be.

A criminal investigation conducted by the Justice Department and natural first question would be.

That -- wanna know whether or not they could be sufficiently independent it may well be that.

If for example the public integrity and -- section at the Department of Justice could handle the investigation.

There's no reason to think that any crimes have been committed yet within the White House but if you know if it but it has happened before but it has happened before and after reaches that level than the attorney -- put in the difficult position of deciding whether or not the attorney general can conduct that investigation.

And if a conflict of interest is -- parents then He may have to call for the appointment of -- regulatory special counsel so ordinarily it would come perhaps at the request of congress.

The attorney general would have to make a decision about that and I don't know the minutia while this regulatory special -- -- pretty much the same as an independent prosecutor boisterous start was a white water that's not quite the same because it doesn't come you know through it a statute of congress -- Visa regulations issued by the -- have just name authority to issue search warrants and -- Well sure I mean He would have that authority like any other prosecutor would have within the Justice Department but ultimately of course that prosecutor reports that the attorney general -- -- I remember an instance with some billing records that were being searched out by you folks.

Billing records that show that apparently show that Hillary Clinton was working for Morgan guaranty the savings and -- that went bust.

And they were reluctant she was reluctant apparently to turn over those billing -- Records until there was a suggestion that there might be ended an indictment handed down and then suddenly they were found miracle of miracles.

In the White House -- -- I'm sure you remember that well been doing that for the for the audience but.

It is there any -- mean sometimes it takes a threat of an indictment to get somebody to find something that's being required.

Stood by a prosecutor sure I mean the problem is is that -- a public relations problem becomes a political problem.

And then ultimately perhaps take a criminal investigation legal problem.

There's a great incentive for politics and are the reasons for people to try to conceal things if that happens it raises the Specter of obstruction of justice.

It raises the question about whether people will voluntarily -- comply with with process and so forth.

Those are difficult questions OK final overall question is this does this have the potential of being as bad as Whitewater or perhaps even water you never know what the early stages but we've had enough experience to know going back to Watergate the things that start out.

Seeming to be relatively small have a way of morphing into very big problems and it's all on how you handle it again as we learn in Watergate.

A generation or more ago it's it's not about what was done usually it's about what was done in order to cover up Robert Ray the former head of the Office of the Independent Counsel.

He was the success you're conservative heavy sir thank you very much for coming I appreciate.