Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post
Newsgroups: americast.wpost
From: americast-post@AmeriCast.Com
Organization: American Cybercasting
Approved: americast-post@AmeriCast.com
Subject: Jordan Takes Leave From Law Firm, Directorships; Clinton Transition Chairman
Date: Tue, 17 Nov 92 04:36:11 EST
Message-ID: <38.1992Nov17.043611@AmeriCast.com>

Jordan Takes Leave From Law Firm, Directorships; Clinton Transi-
tion Chairman Responds to Concerns About Possible Conflicts of
Interest<By Stephen Barr<Washington Post Staff Writer=

Vernon E. Jordan Jr., chairman of President-elect Clinton's tran-
sition team, yesterday said he had taken a leave of absence from
his law firm and from his corporate directorships in response to
questions about possible conflicts of interest.

Clinton, at a Little Rock, Ark., news conference, called the de-
cision a "good gesture" by Jordan, a former president of the Na-
tional Urban League who has been mentioned as a possible attorney
general in the Clinton administration.

When asked whether he would favor a leave by his transition
director, Warren M. Christopher, who is chairman of an influen-
tial Los Angeles law firm, Clinton replied, "Well, I think Mr.
Christopher de facto has done that. I mean, he only goes home on
the weekends."

Jordan disclosed his decision on CNN, saying, "I am on leave from
my law firm. I'm on leave from the boards of directors. I am not
getting paid.  I don't know what else I'm supposed to do."

Last week, the Clinton transition team issued ethics rules that
prevent the senior staff from lobbying or appearing before any
agency of the federal government during the transition or for six
months thereafter. While the rules won approval from public in-
terest groups, several raised questions about how they would be
interpreted.

Jordan, for example, sits on the boards of American Express Co.,
Bankers Trust Co., Bankers Trust New York Corp., Corning Inc.,
Dow Jones & Co. Inc., J.C. Penney Co. Inc., Revlon Group, Ryder
System Inc., Sara Lee Corp., Union Carbide Corp., Xerox Corp. and
RJR Nabisco Inc.

Anti-smoking and environmental groups indicated they were dis-
turbed by Jordan's affiliation with RJR Nabisco, a manufacturer
of tobacco products. Jordan earns $50,000 a year as a RJR direc-
tor, has received 33,595 shares of RJR common stock since joining
the board in 1989, and has been provided with a life insurance
death benefit of $100,000, according to a recent company state-
ment.

Because his directorships contribute to an already lucrative law
practice, some legal scholars and public interest groups last
week wondered how Jordan could avoid the appearance of conflicts
of interest as he helped Clinton make crucial personnel and poli-
cy decisions.

But Ronald D. Rotunda, a University of Illinois law professor and
an expert on legal ethics, said, "Sometimes, people make moun-
tains out of molehills. Vernon Jordan has given a good chunk of
his life to civil rights activities, and he's been criticized
lately because he's a director of a tobacco company. I thought
the criticism was not at all called for. It seemed to me politi-
cal correctness reaching new heights."

Geoffrey C. Hazard Jr., a Yale law professor and ethics special-
ist, said Jordan's leave does not "make much difference in sub-
stance," since it "implies a firm intention to return."

Hazard noted that even on leave, Jordan may be held legally
responsible for his "director's duties" and the supervisory over-
sight he provides by his board memberships.

He also said that Jordan would not let his affiliation with a to-
bacco company influence his handling of a potential nomination
involving public health. For instance, Hazard said, "If he recom-
mended for surgeon general the company physician at RJR, we might
be distressed. I don't think he's going to do that, because he is
an intelligent participant in public affairs."

"I think these new rules are foolish," Hazard added. "They've al-
ready embarrassed the transition team, and they're going to em-
barrass the administration a-plenty if they make more restrictive
rules. They should make more requirements for disclosure, and let
political criticism rather than tight legal controls do the job."

Spokesmen for the Clinton transition team, for Jordan at his
Washington law firm of Akin, Gump, Hauer & Feld and for Christo-
pher at his Las Angeles law firm of O'Melveny & Myers did not re-
turn telephone calls seeking comment.<

Staff researcher Barbara Saffir contributed to this report.<02:30
11-17C9999-----

Copyright 1992, The Washington Post.  This story is from the
Washington Post's Capitol Edition On-Line and is not to be ar-
chived or redistributed.

For more information, send-email to American Cybercasting Cor-
poration (usa@AmeriCast.COM)