Clinton's Burkle Ties Include Funds in Cayman Islands

[jefferson_dem]

Clinton's Burkle Ties Include Funds in Cayman Islands (Update1)

By Timothy J. Burger and Ryan J. Donmoyer

Dec. 17 (Bloomberg) -- Former President Bill Clinton's decision to reconsider a business relationship with California billionaire Ron Burkle reflects concern those financial dealings may embarrass his wife's presidential candidacy.

Securities and Exchange Commission documents and financial- disclosure forms filed by Hillary Clinton show that Bill Clinton, 61, has a financial stake in three investment entities registered in the Cayman Islands by Burkle's Yucaipa Cos. LLC.

In 2004, Hillary Clinton, a New York senator, said she wanted to close the ``loopholes'' for ``people who create a mailbox, or a drop, or send one person to sit on the beach in some island paradise and claim that it is their offshore headquarters.''

The former president's possible decision to move away from Burkle ``is all tied up with the laws of appearance and the politics of perception,'' said Linda Fowler, professor of government at Dartmouth College in Hanover, New Hampshire. ``The world being what it is, people are attracted to the spouse of somebody with political power. The level of potential conflict is just that much higher with a former president and a senator who would be president.''

Moreover, added Fowler, ``with this particular couple, somehow, the whole story doesn't come out except in dribs and drabs.''

Bloomberg News last month submitted a list of questions to the Clinton campaign regarding the former president's involvement in the three Caymans-based funds. The campaign didn't respond to the queries until Dec. 13, after the New York Times reported that Clinton plans to dissolve his five-year partnership with Burkle, a longtime friend and important fund-raiser for both Clintons.

`An Appropriate Transition'

Jay Carson, a Clinton spokesman, said that while the former president hasn't ``severed ties'' with Yucaipa, he ``is taking steps to ensure'' that ``there will be an appropriate transition for those relationships'' if his wife receives the 2008 Democratic presidential nomination.

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In a Dec. 13 debate, Hillary Clinton's chief rival for the Democratic nomination, Senator Barack Obama of Illinois, said that as president he would crack down on corporate loopholes and tax savings, particularly those involving offshore transactions.

``There's a building in the Cayman Islands that houses, supposedly, 12,000 U.S.-based corporations,'' Obama said. ``That's either the biggest building in the world or the biggest tax scam in the world. And I think we know which one it is.''

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http://www.bloomberg.com/apps/news?pid=20601070&sid=aGwhTXxfCSHo&refer=home

[OHdem10]

1. Oh Is Bloomberg going to hop into the race????