General Discussion
In reply to the discussion: HRC is NOT a member of a dynasty (Jeb Bush is, of course) [View all]ND-Dem
(4,571 posts)Rodham had no experience in such financial instruments. Bill Clinton's salary as Arkansas Attorney General and then Governor of Arkansas was modest and Rodham was interested in building a financial cushion for the future[3][4] (the ill-fated Whitewater Development Corporation would be another such effort from this time[3]).
Starting in October 1978, when Bill Clinton was Attorney General and on the verge of being elected Governor,[1] she was guided by James Blair, a friend, lawyer, outside counsel to Tyson Foods, Arkansas' largest employer, and, since 1977,[5] a futures trader...
Blair in turn traded through, and relied upon cattle markets expertise from, broker Robert L. "Red" Bone of Refco, a former Tyson executive and professional poker player who was a World Series of Poker semifinalist.[6][4]
Rodham later wrote that she educated herself about the market and followed it closely, winning and losing money.[3] By January 1979, she was up $26,000;[4] but later, she would lose $16,000 in a single trade.[4] At one point she owed in excess of $100,000 to Refco as part of covering losses, but no margin calls were made by Refco against her.[4]
Near the end of the trading, Blair correctly sold short and gave her a $40,000 gain in one afternoon.[4] In July 1979,[1] once she became pregnant with Chelsea Clinton, "I lost my nerve for gambling [and] walked away from the table $100,000 ahead."[3]
She briefly traded sugar futures contracts and other non-cattle commodities in October 1979, but more conservatively, through Stephens Inc..[4][7] During this period she made about $6,500 in gains (which she failed to pay taxes on at the time, consequently later paying some $14,600 in federal and state tax penalties in the 1990s).[8][7] Once her daughter was born in February 1980, she moved all her commodities gains into U.S. Treasury Bonds.[4]
http://en.wikipedia.org/wiki/Hillary_Rodham_cattle_futures_controversy