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Following the March 1977 meeting between Rabin and U. S. President Jimmy Carter, Rabin publicly announced that the U. S. supported the Israeli idea of defensible borders ; Carter then issued a clarification.
A " fallout " in U. S ./ Israeli relations ensued.
It is thought that the fallout contributed to the Israeli Labour Party's defeat in the May 1977 elections.
At the same time, it was revealed that his wife, Leah, continued to hold a US dollar account from the days that Rabin was ambassador to the United States.
According to Israeli currency regulations at the time, it was illegal for citizens to maintain foreign bank accounts without prior authorisation.
In the wake of this disclosure, Rabin handed in his resignation from the party leadership and candidacy for prime minister, an act that earned him praise as a man of integrity.

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