July 3, 1999

Gov Christine Todd Whitman, who has already acknowledged that New Jersey state troopers discriminated against black and Hispanic drivers, now concedes that police force also mistreats its own employees by tolerating culture of racial discrimination and sexual harassment; Whitman releases report by Attorney General blaming state police leadership for failing to aggressively recruit female and minority troopers and awarding promotions and choice assignments to white male officers in disproportionate numbers; report also cites evidence that police commanders often did nothing to deter or punish white male officers who used racial slurs or crude sexual terms in talking about co-workers while on the job; civil rights leaders criticize report, saying Whitman is belatedly trying to put favorable political spin on problem she can no longer dismiss; photo (M)

House of Representatives' overwhelming approval of banking bill that would repeal 65 years of laws intended to bar banks, insurers and securities underwriters from entering one another's business has given new life to deregulation of financial industry; Clinton Administration likes House bill, and that increases odds that new law will be passed; Treasury Under Sec Gary Gensler says there is finally real chance for meaningful reform; agreement is needed between Sen Phil Gramm, who heads Senate Banking Committee, and Pres Clinton before bill can become law (M)

Hillary Clinton enlists friends and real estate agents to canvass northern Westchester County, New York, suburbs for home Clintons can afford, in state where she is expected to run for Senate; friends say Clintons want to rent home for no more than $10,000 a month; photo of $3.8-million North Salem home Mrs Clinton reportedly likes; Westchester is key electoral county, but privacy and security are prime considerations (M)

In last 24 hours as Treasury Sec, Robert E Rubin scolds Congress for legislation that would make life easier for money laundering, cleans out his office and then watches in mock horror as Pres Clinton's closest advisers play out their fantasy: That Rubin had been captured by Japan's Ministry of Finance and held for bizarre ransom; kidnapping was plot of video entitled: Free Bob: A Documentary, which had its premiere in State Dining Rooming during farewell party given by Pres Clinton; Clinton Administration works hard to make sure first showing is also the last, but it will be hard to keep bootleg copies from leaking out; photo (M)

United States and its NATO allies are blocking Russia from flying hundreds of troops into Kosovo before details of Russia's role in peacekeeping force could be worked out; Russia has been denied use of airspace over Hungary, Romania and Bulgaria to fly planeloads of peacekeepers into Pristina, after those nations consulted with American and NATO officials; Hungary is new member of NATO, and Romania and Bulgaria seek to join it; Russian military negotiators are trying to alter agreement reached in Helsinki, by having their troops in Kosovo report only to Russian officers, rather than be under formal command of NATO; Russia also wants to station forces in Italian, French, American and German sectors of Kosovo; Clinton Administration officials say they want no more surprises from Russia, given its surprise deployment of 200 troops to Pristina airport last month (M)