WHITEWATER . . . THE FIRST TWO CASUALTIES

Embattled Treasury Secretary Roger Altman buckled under pressure and resigned today. Treasury Counsel Jean Hanson is predicted to go next. Altman had come under fire from both Democrats and Republicans for what they called his misleading testimony to Congress on the Whitewater affair. The resignation was no surprise, and it's a sign of bad things to come. After all, the scariest skeletons for the Clinton Administration are expected to be found in the Arkansas part of the Whitewater investigation, which Congress has yet to tackle. Sources tell TIME Washington Correspondent Suneel Ratan that Josh Steiner, Treasury Secretary Lloyd Bentsen's Chief of Staff, will probably not have to step down. Frank Newman, a former banker and current Treasury Undersecretary for Domestic Finance, is rumored to be Altman's successor.