Of course what she said was wrong, but this is from the BBC article.
Suggesting that just 7% of financial services would be affected by Brexit, she reportedly said: "Now I am sure there will be many people who will challenge that but my response and my request is look at the detail - it isn't all doom and gloom."
She went on: "Now we get to the real ****** in the woodpile, which is in two years what happens if there is no deal."
'Zero tolerance'
The phrase originated in the American Deep South in the mid-19th Century and is thought to have referred to slaves having to conceal themselves as they sought to flee north and secure their freedom.
It was subsequently used in the 20th Century - including by a number of leading novelists - as a metaphor to describe a hidden fact or problem.
So, get it into context. She was using a metaphor - albeit a very un PC one to use. Of course she needs to be punished/reprimanded though.
We know what the metaphor MEANS, ffs!
There's no 'context' required. If she were not a racist, the phrase would not have come close to her mind, let alone her lips.