about a friend and racism (not friend.)

I work with a guy, so I couldn't just disappear and not see him; I see him every day. We are friends on top of that. A year ago, he thought some comments I made were racist and for a while he gave me a real hard time about it. The misunderstanding was cleared up. Since then he's made a big deal at times about his values, "all men are created equal," talks about immoral, racist politicians. OK. Fine.

Today I find out he's hanging around a friend who is admittedly racist, hates latinos and blacks, thinks they need to go back to their country, etc. This woman has been a friend of his off and on for several years but she no longer hides her racism like she once did. He has pretty much turned a blind eye to her racist ways now. To me it seems like betraying ones own values; you're against racism but you're going to hang out with a racist because there's a convenience factor there, and perhaps more.

It bothered me. I felt like I didn't know him anymore. I thought he was a hypocrite. Maybe I took it personal because I am hispanic? I felt sad and don't really know what to think of him anymore. After he reamed me so bad over my supposed "racism" he has no problem with this person. Yes he is free to hang with whoever he wants but it isn't about that. I honestly don't know why it bothers me so much. Advice please.