The Seeds of Corruption: Hillary Clinton in Arkansas

[TomClash]

http://www.counterpunch.org/cockburn11152007.html

November 15, 2007
The Seeds of Corruption
Hillary Clinton in Arkansas

By ALEXANDER COCKBURN
and JEFFREY ST. CLAIR

"When things were looking bleak for the Clintons after the Arkansas voters threw Bill out in 1980 after his first term as governor (Arkansas had two-year gubernatorial terms until 1986), she fanned her friendship with James Blair, general counsel of Tyson Foods. Bill Clinton's Little Rock chief of staff, Betsey Wright, recalled that Hillary "loved Jim Blair. Blair was her money man". It was Blair who set up an account for Hillary Clinton with Refco, a small brokerage firm run by Robert "Red" Bone, Don Tyson's former bodyguard and a professional poker player. "Red" Bone got her into cattle future trades. She put up $1,000 and left the trading to Mr. Bone who's often assumed to have arranged the trades with Blair, to Mrs. Clinton's advantage. Nine months later, the $1,000 had swollen with miraculous speed into a profit for Mrs. Clinton of $99,000.

When Bill Clinton ran for the presidency in 1992, reporters noted a mysterious spike in the couple's net worth in the early 1980s and quizzed Mrs. Clinton about it. Her first untruthful explanation was that there had been a windfall in the form of an unexpected gift of cash from her parents. But, aware that the questions wouldn't stop, she issued ferocious order to her staff about any leakage of her tax records. She told them that if they released the tax records showing the commodity trades, they'd "never work in Democratic politics again".

The records were stored in the Clinton Campaign headquarters in Little Rock, in a locked room for which only Hillary, Bill and Betsey Wright had keys. Also in "the Box Room" under lock and key were details of Bill's sexual capers and Hillary's dealings at Rose Law. An internal '92 campaign memo, quoted by Gerth and Van Natta, cited 75 "problem files" in the materials in the Box Room, two-thirds of which related to them as a couple or to Hillary alone. When David Ifshin, the campaign's legal counsel, asked for the key to the room to assess the likely problems, Bill Clinton told him: "We can't open our closet, we'll get crushed by the skeletons".

But two reporters in particular kept pressing: Gerth of the New York Times and James Stewart of the Wall Street Journal. Gerth finally got evidence of the $99,000 profit on a $1,000 trade and confronted Mrs. Clinton. Shorn of the family gift story, Mrs. Clinton avowed that she'd spent her days poring over cattle prices in the Wall Street Journal, that the $99,000 was the fruit of these studies and that she'd quit commodity trading in 1980, after she'd got pregnant with Chelsea, because the trading "was too nerve-wracking". Unfortunately for this story, details later surfaced amid prosecutor Kenneth Starr's investigation during the Clinton presidency, showing that in 1981 Hillary had made a trade netting her $6,500 and she hadn't reported the profit to the IRS."

More . . . http://www.counterpunch.org/cockburn11152007.html