Clark Clifford
Encyclopedia
Clark McAdams Clifford (December 25, 1906 – October 10, 1998) was an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 lawyer
Lawyer
A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...

 who served United States Presidents
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....

 Harry S. Truman
Harry S. Truman
Harry S. Truman was the 33rd President of the United States . As President Franklin D. Roosevelt's third vice president and the 34th Vice President of the United States , he succeeded to the presidency on April 12, 1945, when President Roosevelt died less than three months after beginning his...

, John F. Kennedy
John F. Kennedy
John Fitzgerald "Jack" Kennedy , often referred to by his initials JFK, was the 35th President of the United States, serving from 1961 until his assassination in 1963....

, Lyndon B. Johnson
Lyndon B. Johnson
Lyndon Baines Johnson , often referred to as LBJ, was the 36th President of the United States after his service as the 37th Vice President of the United States...

 and Jimmy Carter
Jimmy Carter
James Earl "Jimmy" Carter, Jr. is an American politician who served as the 39th President of the United States and was the recipient of the 2002 Nobel Peace Prize, the only U.S. President to have received the Prize after leaving office...

, serving as United States Secretary of Defense
United States Secretary of Defense
The Secretary of Defense is the head and chief executive officer of the Department of Defense of the United States of America. This position corresponds to what is generally known as a Defense Minister in other countries...

 for Johnson.

In his later years, Clifford became involved in several controversies. He was a key figure in the Bank of Credit and Commerce International
Bank of Credit and Commerce International
The Bank of Credit and Commerce International was a major international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The Bank was registered in Luxembourg with head offices in Karachi and London. Within a decade BCCI touched its peak...

 scandal, which led to a grand jury indictment. He also referred to President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....

 as an "amiable dunce" at a Washington dinner party.

Early life and career

Clifford was born in Fort Scott, Kansas
Fort Scott, Kansas
Fort Scott is a city in and the county seat of Bourbon County, Kansas, United States, south of Kansas City, on the Marmaton River. As of the 2010 census, the city population was 8,087. It is the home of the Fort Scott National Historic Site and the Fort Scott National...

. He attended college and law school at Washington University in St. Louis
Washington University in St. Louis
Washington University in St. Louis is a private research university located in suburban St. Louis, Missouri. Founded in 1853, and named for George Washington, the university has students and faculty from all fifty U.S. states and more than 110 nations...

, Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...

, and built a solid reputation practicing law in St. Louis between 1928 and 1943.

He served as an officer in the U.S. Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...

 from 1944 to 1946, reaching the rank of Captain and serving as assistant naval aide and then naval aide to President Truman, for whom he became a trusted personal adviser and friend.

Presidential advisor

Clifford went to Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....

, first to serve as Assistant to the President's Naval Advisor, after the naming of a personal friend from Missouri as the President's Naval Advisor. Following his discharge from the Navy, he remained at Truman's side as White House Counsel
White House Counsel
The White House Counsel is a staff appointee of the President of the United States.-Role:The Counsel's role is to advise the President on all legal issues concerning the President and the White House...

 from 1946 to 1950, as Truman came rapidly to trust and rely upon Clifford.

Clifford was a key architect of Truman's campaign in 1948, when Truman pulled off a stunning upset victory over Republican nominee Thomas Dewey
Thomas Dewey
Thomas Edmund Dewey was the 47th Governor of New York . In 1944 and 1948, he was the Republican candidate for President, but lost both times. He led the liberal faction of the Republican Party, in which he fought conservative Ohio Senator Robert A. Taft...

. Clifford encouraged Truman to embrace a left-wing populist
Populism
Populism can be defined as an ideology, political philosophy, or type of discourse. Generally, a common theme compares "the people" against "the elite", and urges social and political system changes. It can also be defined as a rhetorical style employed by members of various political or social...

 image in hope of undermining the impact on the race of third-party Progressive
Progressive Party (United States, 1948)
The United States Progressive Party of 1948 was a left-wing political party that ran former Vice President Henry A. Wallace of Iowa for president and U.S. Senator Glen H. Taylor of Idaho for vice president in 1948.-Foundation:...

 candidate Henry A. Wallace
Henry A. Wallace
Henry Agard Wallace was the 33rd Vice President of the United States , the Secretary of Agriculture , and the Secretary of Commerce . In the 1948 presidential election, Wallace was the nominee of the Progressive Party.-Early life:Henry A...

, who had served as President Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...

's Vice-President from 1941 to 1945. Clifford also believed that a strong pro-civil rights stance, while sure to alienate traditional Southern Democrats, would not result in a serious challenge to the party's supremacy in that region. This prediction was foiled by Strom Thurmond
Strom Thurmond
James Strom Thurmond was an American politician who served as a United States Senator. He also ran for the Presidency of the United States in 1948 as the segregationist States Rights Democratic Party candidate, receiving 2.4% of the popular vote and 39 electoral votes...

's candidacy as a splinter States' Rights Democrat
Dixiecrat
The States' Rights Democratic Party was a short-lived segregationist political party in the United States in 1948...

, but Clifford's strategy nonetheless helped win Truman election in his own right and establish the Democratic Party's position in the Civil Rights Movement
Civil rights movement
The civil rights movement was a worldwide political movement for equality before the law occurring between approximately 1950 and 1980. In many situations it took the form of campaigns of civil resistance aimed at achieving change by nonviolent forms of resistance. In some situations it was...

.

In his role as presidential advisor, perhaps his most significant contribution was his successful advocacy, along with David Niles
David Niles
David K. Niles was a political advisor who worked in the White House from 1942–1951 for the administrations of Franklin Roosevelt and Harry Truman. Niles was one of only two Roosevelt aides retained by Truman upon his assumption of the presidency...

, of prompt 1948 recognition of the new state of Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

, over the strong objections of Secretary of State, General George Marshall
George Marshall
George Catlett Marshall was an American military leader, Chief of Staff of the Army, Secretary of State, and the third Secretary of Defense...

.

After leaving the government in 1950, Clifford practiced law in Washington, D.C., but continued to advise Democratic Party
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...

 leaders. One of his law clients was Kennedy, then a U.S. Senator, and Clifford tried to assuage Truman's suspicion of Kennedy and his father, Joseph P. Kennedy.

In 1960, Clifford was a member of President-elect
President-elect
An -elect is a political candidate who has been elected to an office but who has not yet been sworn in or officially taken office. These may include an incoming president, senator, representative, governor and mayor.Analogously, the term "designate" An -elect is a political candidate who has been...

 Kennedy's Committee on the Defense Establishment, headed by Stuart Symington
Stuart Symington
William Stuart Symington was a businessman and political figure from Missouri. He served as the first Secretary of the Air Force from 1947 to 1950 and was a Democratic United States Senator from Missouri from 1953 to 1976.-Education and business career:...

. In May 1961, Kennedy appointed Clifford to the President's Foreign Intelligence Advisory Board
President's Foreign Intelligence Advisory Board
The President's Intelligence Advisory Board is an advisor to the Executive Office of the President of the United States. According to its self-description, it "...provides advice to the President concerning the quality and adequacy of intelligence collection, of analysis and estimates, of...

, which he chaired beginning in April 1963 and ending in January 1968.

After Johnson became president in November 1963 following Kennedy's assassination
John F. Kennedy assassination
John Fitzgerald Kennedy, the thirty-fifth President of the United States, was assassinated at 12:30 p.m. Central Standard Time on Friday, November 22, 1963, in Dealey Plaza, Dallas, Texas...

, Clifford served frequently as an unofficial White House Counsel and sometimes undertook short-term official duties, including a trip with General Maxwell Taylor in 1967 to Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 and other countries in Southeast Asia and the Pacific.

Secretary of Defense

On January 19, 1968, Johnson announced his selection of Clifford to succeed Robert McNamara
Robert McNamara
Robert Strange McNamara was an American business executive and the eighth Secretary of Defense, serving under Presidents John F. Kennedy and Lyndon B. Johnson from 1961 to 1968, during which time he played a large role in escalating the United States involvement in the Vietnam War...

 as the U.S. Secretary of Defense. Clifford estimated that, in the year just prior to his appointment, he had spent about half of his time advising the President and the other half working for his law firm.

Widely known and respected in Washington and knowledgeable on defense matters, Clifford was generally hailed as a worthy successor to McNamara. Many regarded the new secretary as more of a hawk on Vietnam than McNamara, and thought his selection might presage an escalation of the U.S. military effort there. Clifford attempted to allay such fears when, responding to a query about whether he was a hawk (favoring aggressive military action) or a dove (favoring a peaceful resolution to the Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...

), he remarked, "I am not conscious of falling under any of those ornithological divisions."

The new Secretary did not change the management system McNamara had installed at The Pentagon
The Pentagon
The Pentagon is the headquarters of the United States Department of Defense, located in Arlington County, Virginia. As a symbol of the U.S. military, "the Pentagon" is often used metonymically to refer to the Department of Defense rather than the building itself.Designed by the American architect...

, and for the most part assigned internal administration to Deputy Secretary of Defense Paul H. Nitze. Clifford made no effort to depart from McNamara's policies and programs on such matters as nuclear strategy, NATO, and military assistance, but he favored the Sentinel anti-ballistic missile
Anti-ballistic missile
An anti-ballistic missile is a missile designed to counter ballistic missiles .A ballistic missile is used to deliver nuclear, chemical, biological or conventional warheads in a ballistic flight trajectory. The term "anti-ballistic missile" describes any antimissile system designed to counter...

 system, to which McNamara had given only lukewarm backing. Clifford wanted to deploy the system, and supported congressional appropriations for it. One important effect of Sentinel construction, he thought, would be to encourage the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 to enter arms control talks with the U.S. Indeed, before Clifford left office, the Johnson administration made arrangements for negotiations that eventually led to the Anti-Ballistic Missile Treaty
Anti-Ballistic Missile Treaty
The Anti-Ballistic Missile Treaty was a treaty between the United States and the Soviet Union on the limitation of the anti-ballistic missile systems used in defending areas against missile-delivered nuclear weapons....

 of 1972.

Clifford continued McNamara's highly publicized Cost Reduction Program, announcing that over $1.2 billion had been saved in fiscal year (FY) 1968 as a result of the effort. Faced with a congressionally mandated reduction of expenditures in FY 1969, Clifford suspended the planned activation of an infantry division and deactivated 50 small ships, 9 naval air squadrons, and 23 Nike-Hercules missile launch sites.
By the time Clifford became secretary, Defense Department work on the fiscal year 1969 budget was complete. It amounted in total obligational authority to $77.7 billion, almost $3 billion more than in FY 1968. The final FY 1970 budget, which Clifford and his staff worked on before they left office after the election of Richard Nixon
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...

 to the presidency, amounted to $75.5 billion TOA.

Vietnam

Clifford took office committed to rethinking Johnson's Vietnam policies, and Vietnam policy consumed most of his time. He had argued against escalation in 1965 in private counsel with the president, but then provided public support for the president's position once the decision was made. At his confirmation hearing, he told the Armed Services Committee
Armed Services Committee
The term Armed Services Committee may refer to:*United States House Committee on Armed Services*United States Senate Committee on Armed Services...

 of the U.S. Senate that the limited objective of the U.S. was to guarantee to the people of South Vietnam
South Vietnam
South Vietnam was a state which governed southern Vietnam until 1975. It received international recognition in 1950 as the "State of Vietnam" and later as the "Republic of Vietnam" . Its capital was Saigon...

 the right of self-determination. He opposed ending the U.S. bombing of North Vietnam
North Vietnam
The Democratic Republic of Vietnam , was a communist state that ruled the northern half of Vietnam from 1954 until 1976 following the Geneva Conference and laid claim to all of Vietnam from 1945 to 1954 during the First Indochina War, during which they controlled pockets of territory throughout...

 at the time, but acknowledged that the situation could change.

In fact, on March 31, 1968, just a month after Clifford arrived at The Pentagon, Johnson, in an effort to get peace talks started, ordered the cessation of bombing north of the 20th parallel
20th parallel north
The 20th parallel north is a circle of latitude that is 20 degrees north of the Earth's equatorial plane. It crosses Africa, Asia, the Indian Ocean, the Pacific Ocean, North America, the Caribbean and the Atlantic Ocean....

, an area comprising almost 80 percent of North Vietnam's land area and 90 percent of its population. In the same address, Johnson announced that he would not be a candidate for reelection in 1968, surprising everyone, Clifford included. Soon the North Vietnamese agreed to negotiations, which began in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

 in mid-May 1968. Later, on October 31, 1968, to encourage the success of these talks, the President, with Clifford's strong support, ordered an end to all bombing in North Vietnam.

Clifford, like McNamara, had to deal with frequent requests for additional troops from military commanders in Vietnam. When he became secretary, the authorized force in Vietnam was 525,000. Soon after moving into his Pentagon office, Clifford persuaded Johnson to deny General William Westmoreland
William Westmoreland
William Childs Westmoreland was a United States Army General, who commanded US military operations in the Vietnam War at its peak , during the Tet Offensive. He adopted a strategy of attrition against the National Liberation Front of South Vietnam and the North Vietnamese Army. He later served as...

's request for an additional 206,000 American troops in Vietnam.

At the end of March 1968, however, the president agreed to send 24,500 more troops on an emergency basis, raising authorized strength to 549,500, a figure never reached. Even as he oversaw a continued buildup, Clifford preferred to emphasize the points Johnson had made in his March 31, 1968 address: that the South Vietnamese army could take over a greater share of the fighting, that the administration would place an absolute limit on the number of U.S. troops in Vietnam, and that it would take steps, including the bombing restrictions, to reduce the combat level.

Eventually Clifford moved very close, with Johnson's tacit support, to the views McNamara held on Vietnam just before he left office—no further increases in U.S. troop levels, support for the bombing halt, and gradual disengagement from the conflict. By this time Clifford clearly disagreed with Secretary of State Dean Rusk
Dean Rusk
David Dean Rusk was the United States Secretary of State from 1961 to 1969 under presidents John F. Kennedy and Lyndon B. Johnson. Rusk is the second-longest serving U.S...

, who believed, according to The Washington Post
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...

,
"that the war was being won by the allies" and that it "would be won if America had the will to win it." He later recalled how he turned against the war: "I found out that we couldn’t win the war with the limitations that we had, which I thought were correct limitations, and I thought all we were going to do was just waste the lives of our men and our treasure out in the jungles of North and South Vietnam."

After he left office, Clifford, in the July 1969 issue of Foreign Affairs
Foreign Affairs
Foreign Affairs is an American magazine and website on international relations and U.S. foreign policy published since 1922 by the Council on Foreign Relations six times annually...

,
made his views very clear: "Nothing we might do could be so beneficial ... as to begin to withdraw our combat troops. Moreover ... we cannot realistically expect to achieve anything more through our military force, and the time has come to begin to disengage. That was my final conclusion as I left the Pentagon ..." Clifford received the Presidential Medal of Freedom
Presidential Medal of Freedom
The Presidential Medal of Freedom is an award bestowed by the President of the United States and is—along with thecomparable Congressional Gold Medal bestowed by an act of U.S. Congress—the highest civilian award in the United States...

 from Johnson on the President's last day in office, January 20, 1969.

Although the Johnson Administration ended under the cloud of the Vietnam War, Clifford concluded his short term as Secretary of Defense with his reputation actually enhanced. He got along well with the U.S. Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

, and this helped him to secure approval of at least some of his proposals. He settled into his duties quickly and efficiently, and capably managed the initial de-escalation of U.S. involvement in Vietnam; indeed, he apparently strongly influenced Johnson in favor of a de-escalation strategy. As he left office to return to his law practice in Washington, Clifford expressed the hope and expectation that international tensions would abate, citing the shift in the Vietnam confrontation from the battlefield to the conference table, and the evident willingness of the Soviet Union to discuss limitations on strategic nuclear weapons.

Special presidential emissary to India

Clifford's legal practice and lobbying work made him wealthy, and he was considered one of Washington's "superlawyers" due to the reach of his influence and seemingly limitless connections. Clifford's office overlooked the White House
White House
The White House is the official residence and principal workplace of the president of the United States. Located at 1600 Pennsylvania Avenue NW in Washington, D.C., the house was designed by Irish-born James Hoban, and built between 1792 and 1800 of white-painted Aquia sandstone in the Neoclassical...

, emphasizing his long experience in the capital. Clifford was renowned for his seemingly effortless charm, style, tact and discretion.

In 1980, President Carter appointed him as special presidential emissary
Diplomat
A diplomat is a person appointed by a state to conduct diplomacy with another state or international organization. The main functions of diplomats revolve around the representation and protection of the interests and nationals of the sending state, as well as the promotion of information and...

 to India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

.

Clifford made waves by threatening the newly established regime
Regime
The word regime refers to a set of conditions, most often of a political nature.-Politics:...

 of Ayatollah Khomeini of Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...

 with war for its intransigence in negotiating the release of the hostages seized from the U.S. embassy in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...

.

Bank of Credit and Commerce International

In 1991, Clifford's memoirs Counsel to the President (co-authored with Richard Holbrooke
Richard Holbrooke
Richard Charles Albert Holbrooke was an American diplomat, magazine editor, author, professor, Peace Corps official, and investment banker....

, later U.S. Ambassador to the United Nations
United States Ambassador to the United Nations
The United States Ambassador to the United Nations is the leader of the U.S. delegation, the U.S. Mission to the United Nations. The position is more formally known as the "Permanent Representative of the United States of America to the United Nations, with the rank and status of Ambassador...

) were published just as his name was implicated in the unfolding Bank of Credit and Commerce International
Bank of Credit and Commerce International
The Bank of Credit and Commerce International was a major international bank founded in 1972 by Agha Hasan Abedi, a Pakistani financier. The Bank was registered in Luxembourg with head offices in Karachi and London. Within a decade BCCI touched its peak...

 (BCCI) scandal. The scandal focused on the criminal conduct of the international bank and its control of financial institutions nationwide. The bank was found by regulators in the U.S. and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 to be involved in money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...

, bribery
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...

, support of terrorism
Terrorism
Terrorism is the systematic use of terror, especially as a means of coercion. In the international community, however, terrorism has no universally agreed, legally binding, criminal law definition...

, arms trafficking, the sale of nuclear technologies, the commission and facilitation of tax evasion
Tax avoidance and tax evasion
Tax noncompliance describes a range of activities that are unfavorable to a state's tax system. These include tax avoidance, which refers to reducing taxes by legal means, and tax evasion which refers to the criminal non-payment of tax liabilities....

, smuggling
Smuggling
Smuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations.There are various motivations to smuggle...

, illegal immigration, and the illicit purchases of banks and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...

. The bank was found to have at least $13 billion in unaccounted funds.

From 1982 to 1991, Clifford served as chairman of First American Bankshares, which grew to become the largest bank in Washington, D.C. The bank was nominally owned by a group of Arab investors, but in order to assuage fears from the Federal Reserve, Clifford had assembled a board of distinguished American citizens to exercise day-to-day control. In 1991, Robert M. Morgenthau
Robert M. Morgenthau
Robert Morris Morgenthau is an American lawyer. From 1975 until his retirement in 2009, he was the District Attorney for New York County, the borough of Manhattan.-Early life:...

, the District Attorney for New York County (coterminous with the borough
Borough (New York City)
New York City, one of the largest cities in the world, is composed of five boroughs. Each borough now has the same boundaries as the county it is in. County governments were dissolved when the city consolidated in 1898, along with all city, town, and village governments within each county...

 of Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...

), disclosed that his office had found evidence that BCCI secretly owned First American. Morgenthau convened a grand jury
Grand jury
A grand jury is a type of jury that determines whether a criminal indictment will issue. Currently, only the United States retains grand juries, although some other common law jurisdictions formerly employed them, and most other jurisdictions employ some other type of preliminary hearing...

 to determine whether Clifford and his partner, Robert A. Altman
Robert A. Altman
Robert A. Altman is the current chairman and CEO of ZeniMax Media, parent company of Bethesda Softworks, LLC.-Career:Altman is a lawyer. He became part of the company BCCI. During his time there he was accused of helping the business buy an American bank and lying to US regulators about it. In...

, had deliberately misled federal regulators when the two men assured them that BCCI would have no outside control.

An audit by Price Waterhouse revealed that contrary to agreements between First American's nominal investors and the Federal Reserve, many of the investors had borrowed heavily from BCCI. Even more seriously, they had pledged their First American stock as collateral. When they missed interest payments, BCCI took control of the shares. It was later estimated that in this manner, BCCI had ended up with 60 percent or more of First American's stock. There had long been suspicions that First American's investors were actually nominees for BCCI. However, the audit was solid confirmation that BCCI secretly — and illegally — owned First American.

Clifford's predicament worsened when it was disclosed he had made about $6 million in profits
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...

 from bank stock that he had bought with an unsecured loan from BCCI. The grand jury handed up indictment
Indictment
An indictment , in the common-law legal system, is a formal accusation that a person has committed a crime. In jurisdictions that maintain the concept of felonies, the serious criminal offence is a felony; jurisdictions that lack the concept of felonies often use that of an indictable offence—an...

s, and the U.S. Justice Department
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...

 opened its own investigation. Clifford's assets in New York City, where he kept most of his investments, were frozen.

Clifford insisted that he had no knowledge of illegal activity at First American, and insisted that he himself had been deceived about the extent of BCCI's involvement. However, both Morgenthau and federal regulators argued that Clifford should have known.

A "Report to the Committee on Foreign Relations of the United States Senate," prepared by U.S. Senators John Kerry
John Kerry
John Forbes Kerry is the senior United States Senator from Massachusetts, the 10th most senior U.S. Senator and chairman of the Senate Foreign Relations Committee. He was the presidential nominee of the Democratic Party in the 2004 presidential election, but lost to former President George W...

 and Hank Brown
Hank Brown
George Hanks "Hank" Brown is a former Republican politician and U.S. Senator from Colorado who served as president of the University of Colorado system from April 2005 - January 2008.-Education:...

, noted that a key strategy of "BCCI's successful secret acquisitions of U.S. banks in the face of regulatory suspicion was its aggressive use of a series of prominent Americans," Clifford among them. Clifford, who prided himself on decades of meticulously ethical conduct, summed his predicament up when he sadly told a reporter from The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...

, "I have a choice of either seeming stupid or venal."

Indictments against Clifford were set aside because of his failing health.

Death

Not long after a final, frail appearance in the 1997 PBS television documentary
Documentary
A documentary is a creative work of non-fiction, including:* Documentary film, including television* Radio documentary* Documentary photographyRelated terms include:...

 Truman, Clifford died from natural causes
Death by natural causes
A death by natural causes, as recorded by coroners and on death certificates and associated documents, is one that is primarily attributed to natural agents: usually an illness or an internal malfunction of the body. For example, a person dying from complications from influenza or a heart attack ...

 in 1998 at age 91. He was buried at Arlington National Cemetery
Arlington National Cemetery
Arlington National Cemetery in Arlington County, Virginia, is a military cemetery in the United States of America, established during the American Civil War on the grounds of Arlington House, formerly the estate of the family of Confederate general Robert E. Lee's wife Mary Anna Lee, a great...

, in Arlington, Virginia.

Portrayal in popular culture

  • Tony Goldwyn
    Tony Goldwyn
    Anthony Howard "Tony" Goldwyn is an American actor and director. He portrayed the villain Carl Bruner in Ghost, Colonel Bagley in The Last Samurai, and the voice of the title character of the Disney animated Tarzan.-Early life:...

     portrayed Clifford in the HBO television film
    Television movie
    A television film is a feature film that is a television program produced for and originally distributed by a television network, in contrast to...

     Truman
    Truman (film)
    Truman is a 1995 HBO movie based on David McCullough's Pulitzer Prize-winning book, Truman. Starring Gary Sinise as Harry S. Truman, the film centers on Truman's rise to the presidency from humble beginnings, World War II, and his decision to use the first atomic bomb. The film's tagline is "It...

    (1995).
  • Donald Sutherland
    Donald Sutherland
    Donald McNichol Sutherland, OC is a Canadian actor with a film career spanning nearly 50 years. Some of Sutherland's more notable movie roles included offbeat warriors in such war movies as The Dirty Dozen, , MASH , and Kelly's Heroes , as well as in such popular films as Klute, Invasion of the...

     portrayed Clifford in the HBO television film Path to War
    Path to War
    Path to War is a 2002 American biographical television film, produced by HBO and directed by John Frankenheimer that deals directly with the Vietnam War as seen through the eyes of United States President Lyndon B...

    (2002).

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