[Slartibartfast]

He used the word *****rd or *****rdly (not sure which exactly) and used it in the correct context when talking about financial stuff. He was later offered his job back when the whole issue was resolved:

On January 15, 1999, David Howard, a white aide to Anthony A. Williams, the black mayor of Washington, D.C., United States, used the word in reference to a budget. This apparently upset one of his black colleagues (identified by Howard as Marshall Brown), who incorrectly interpreted it as a racial slur and lodged a complaint. As a result, on January 25 Howard tendered his resignation, and Williams accepted it.[1]

However, after pressure from the gay community (of which Howard was a member) and black leaders, an internal review into the matter was brought about, and the mayor offered Howard the chance to return to his position as Office of the Public Advocate on February 4. Howard refused but accepted another position with the mayor instead, insisting that he did not feel victimized by the incident. On the contrary, Howard felt that he had learned from the situation. "I used to think it would be great if we could all be colorblind. That's naive, especially for a white person, because a white person can't afford to be colorblind. They don't have to think about race every day. An African American does."

http://en.wikipedia.org/wiki/*****rdly