Clintons convert stocks into cash

CONCERNED that their personal finances might become a political liability again, Bill and Hillary Clinton have sold the stocks held by their blind trust after becoming aware they included oil and pharmaceutical companies, military contractors and the US retail giant Wal-Mart.

The Clintons liquidated the trust in April and are leaving the proceeds in cash as Senator Clinton runs for the 2008 Democratic presidential nomination.

"Senator Clinton and the [former] president wanted to go above and beyond and avoid even the appearance of a conflict of interest," said Howard Wolfson, her campaign's communications director.

By disposing of their stocks, which were valued at between $US5 million ($5.97 million) and $US25 million, Senator Clinton will also avoid holding financial stakes in companies — such as Rupert Murdoch's News Corporation, the owner of Fox News — that could draw criticism from some Democratic voters.

The couple will owe "substantial amounts" in capital gains tax, an adviser said. They are also giving up the potentially higher returns from stocks to hold their money in savings accounts.

According to financial disclosure documents, the couple's net worth falls between $US10 million and $US50 million.

Mr Clinton earned about $US10 million from paid speeches in 2006, while his wife earned $US350,025 in royalties for her autobiography.

The Clintons sold the stock as they prepared to disclose their holdings under ethics rules for presidential candidates. Previous investments have come back to haunt them, most notably the Whitewater land deal that dogged Mr Clinton's presidency.

The disclosure forms reveal details about Mr Clinton's investments in Yucaipa Cos, a Californian equity firm controlled by Ron Burkle, one of Senator Clinton's top fund-raisers.

After the disclosure, Senator Clinton's arch-rival for the Democratic nomination, Senator Barack Obama, circulated a scathing analysis entitled "Hillary Clinton (D-Punjab)". It highlighted the acceptance by Mr Clinton of $US300,000 in speech fees from Cisco, a company the Obama campaign said had moved US jobs to India.

? The celebrity agent Max Markson paid Mr Clinton $US750,000 ($1 million at the time) to give three speeches in Sydney, Melbourne and Auckland last year, according to the financial disclosures, Anne Davies reports.

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