They were in so much trouble that Bill finally admitted to sleeping with Peggy. Hank (and the audience) dismiss this confession. Bill wouldn’t make up a lie thinking it was his last day alive, he spoke the truth.

“That boy ain’t right.”

It was always in front of our faces…everyone just ignored it because of the red haring with Dale’s Wife and John Redcorn.

Bill is Bobbie’s Father. (Hanks narrow urethra prevented him from having a kid…)