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DNC Chairwoman to Resign; White House Comments on DNC Chief's Resignation; Clinton Reacts to DNC Chief Stepping Down; Munich Arrested Teenager in Connection with Friday's Shooting Spree; Australian Officials Say Olympic Housing Unsafe. Aired 4-5p ET

Aired July 24, 2016 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(COMMERCIAL BREAK)

[16:00:40] FREDRICKA WHITFIELD, CNN ANCHOR: All right. Welcome to a very hot Philadelphia, and we mean it figuratively and literally here. Site of the Democratic National Convention. This is also the home of the liberty bell, independence hall and the place where the Declaration of Independence and constitution were signed. CNN is bringing you live coverage from the convention.

Hello again, everyone. Thank you so much for joining me. I'm Fredricka Whitfield live in Philadelphia. If we say it is hot out here. We have got this breaking news. Debbie Wasserman Schultz will step down as chair of the Democratic National Committee at the end of this week's convention.

I want to bring in now CNN senior Washington correspondent Jeff Zeleny and CNN chief political correspondent Dana Bash. You both have been getting reporting on this, talking to your sources. Jeff, let me go to you first about this decision and how at first it looked like she was digging in her heels, it was hard fought. But now it appears her tenure will be over?

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Yes, that's what it looks like, Fredricka. But not immediately. And let's look at this statement that she just issued very carefully here, particularly these lines. She says this. She says going forward, the best way for me to accomplish those goals is to step down as party chair at the end of this convention. As the party chair, I will open and close the convention and I will also address the delegates about the stakes involved in this election. Now, this is where it could get complicated here, Fredricka.

I just talked to a top Democratic source who has been in conversations with the Clinton campaign. And he said, this is not okay with Brooklyn, the Clinton campaign headquarters. They firmly do not want her making a major address here in this hall. They do not want her facing the -- for one, the ridicule but also just the controversy and drama of potentially being booed and keeping this going on here. So, I am told by a top Democrat that this statement may evolve as the afternoon goes on. But Dana to me, this is starting to sound like the Republican convention last weekend in Cleveland. I mean, Bernie Sanders supporters are already angry, and now this.

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: That's right. And actually, you know, we were reporting during the Republican convention at the beginning about, you know, very sort of intense, passionate debates that spilled on to the floor about their rules. And it was some of the Ted Cruz versus Donald Trump situation continuing and, as you said, if this happens, if Debbie Wasserman Schultz does address the convention which as of this morning part of the deal with her being stripped of her role as chair of this convention was also she wasn't going to be allowed to speak, that could be a very uncomfortable moment for the Clinton campaign never mind Debbie Wasserman Schultz herself because we have seen already before this is even gaveled open.

There are a lot of very, very passionate Bernie Sanders supporters still here with their signs, with their buttons, you know, making clear to us in the streets and in the hallways of our hotel that he got 43 percent of the vote. They already felt like that before the e- mails were leaked that, from their perspective, confirmed what they already thought, which is that they had -- the DNC had their hand on the scale for Hillary Clinton during the whole primary process. So, it could be incredibly, incredibly ugly.

But as you were reporting, this is obviously not something that Debbie Wasserman Schultz wanted, and she has been very, very reluctant in the meeting that we have been told. John King is been reporting about this as well. Had been going on all day today trying to pressure her to do what it appears she has done, but whether or not she's gone far enough by saying it won't happen until Friday. That's the question.

ZELENY: And she was on stage yesterday Fredricka in Miami there. She was actually -- she's a member of Congress from Florida, of course. And she was part of the warm-up act with Hillary Clinton and Tim Kaine. And then I happened to be on a flight with her just coincidentally from Miami here to Philadelphia. I was having a conversation with her. Of course this has been a difficult period for her. She told me she was looking forward to this convention, the historic nature of this convention, and the fact that she essentially has had her speaking role stripped in this nature was something that didn't sit well with her. So now we're going to have to see how this unfolds, if she actually does speak, but if she does, it's not going to be anywhere near when Hillary is on the stage.

BASH: That's right. And I think the key thing to remember here is, this is, as I toss it back to you, Fred, this is a side show that no candidate wants when they're going to be nominated but particularly when you're talking about the nature of what this is, which is a reminder to the Bernie Sanders supporters that Hillary Clinton is trying so hard to attract and to make sure that they go out for her and vote in the general election, that this is a side show that goes to the heart of what Hillary Clinton needs to do, which is unify the party.

[16:05:32] WHITFIELD: Right. And so Jeff, you just said that, you know, Brooklyn, Clinton's headquarters, they're not happy with this. So, one has to wonder why that camp cannot leverage this decision, a speedier decision by Debbie Wasserman Schultz, when, Dana, you just said, this is upstaging an event. This is upstaging, you know, what Clinton's mission is. So Jeff, why did the Clinton campaign feel that they could not convince her otherwise that stepping down now as opposed to later?

ZELENY: Well, Fredricka, I think this is a work in progress. It's what, about a little after 4:00 in the east on Sunday? This has not disrupted anything yet. The convention hall is empty except for a few of us in here. They want to have this resolved by tomorrow I'm told. So, I think that we may see still this evolving in a different way here. But Debbie Wasserman Schultz, as Dana knows very well from covering her in Congress for years, she's been very resilient and she's a fighter and she wants to stay in this position. She also is running for re-election in her Florida Congressional seat. I believe her primary is in August. That also is connected to this.

BASH: But her primary opponent, by the way, is somebody that Bernie Sanders told Jake Tapper a couple of months ago that he would support. That just shows you the animus between them. But I think one other way to answer your question, Fred, is about why she's kind of, you know, not leaving is because she has worked really, really hard. She's been a member of Congress and she's been the chair of the Democratic National Committee, worked very, very hard to raise money to do everything that you need to do to be the Democratic Party chair, and she feels like she's worked to this moment at the convention and she wants to have her due to address the delegates. There's no question --

WHITFIELD: Yes. And I think a lot of people would understand --

BASH: -- that's what that is about.

WHITFIELD: Yes, and it would seem a lot of people would understand that she wants to, you know, enjoy the fruits of her labor, but this is much bigger than her and her position and for the sake of the candidacy, one would think that perhaps there would be a quicker evolution, you know, of that decision-making.

ZELENY: Sure. I mean, that would have been the ideal situation. In fact, some people were hoping that she would have stepped down a while ago. And maybe now you have to wonder if she's wondering that as well.

WHITFIELD: Yes.

ZELENY: But look, I think the -- there had been talk some months ago that the end of the convention may be the end of the road for her. Now it appears that that is kind of a good exit point. She may say of course she wants to, you know, campaign for herself. But again, Fredricka, I think this is still evolving here. And let's wait and see if she ever shows up on the stage or if it's ever at an actual prime moment when people are watching.

WHITFIELD: All right. Jeff Zeleny, Dana Bash, excellent reporting. Thank you so much. A very complicated situation here. I have got a fantastic panel here to delve into all of this. Bill

Press, David Chalian, Mark Preston, Maria Cardona, Van Jones and Scottie Hughes. Thanks to all of you.

OK, Mark. Let me go to you first because it looks like you're champing at the bit. You have more source Intel.

MARK PRESTON, CNN POLITICS EXECUTIVE EDITOR: Right. Right. So, as we're talking right now, Donna Brazile who is a CNN contributor, vice chair of the DNC, will now be taking over the DNC as Debbie Wasserman Schultz leaves the position.

UNIDENTIFIED MALE: Interim. On an interim --

PRESTON: Interim. On an interim basis as we would expect. So, Donna Brazile very well known by our viewers, very well known by Democrats. And actually very well respected and liked by the Bernie Sanders campaign during all of the turmoil. Donna worked behind the scenes to try to keep the waters from getting too choppy.

WHITFIELD: She worked very hard this campaign season saying she owed impartiality. She was not advocating for Clinton nor Bernie Sanders or anyone --

VAN JONES, CNN POLITICAL COMMENTATOR: Donald was not only impartial on the air. She was impartial behind the scenes. She kept up consistent communication to both sides. And that is just a tough people, even the activist base. She put the kind of work and you would expect from a party chair.

WHITFIELD: Right.

BILL PRESS, CNN POLITICAL COMMENTATOR: This is a great decision. And as a Bernie Sanders supporter, you know, I talked a lot, worked a lot with Donna throughout this thing. I mean, there could be anybody better. I have to come back to this question. This is the wrong decision. I'd like to remind everybody this convention is about Hillary Clinton and Tim Kaine. It's not about and should not be about Debbie Wasserman Schultz. And if she stays for the next four days, that's all we're going to be talking about. I think this is a leadership test for Hillary Clinton. She cannot let Debbie Wasserman Schultz address those delegates.

WHITFIELD: You see this as a challenge, for Hillary Clinton to step up and say --

PRESS: Yes. Yes.

WHITFIELD: -- this is a decision I'm making for the DNC.

PRESS: And by the way, the President did appoint her, so if Hillary calls Obama, Obama will do the right thing. I mean, this cannot fester.

JONES: You're being too kind, sir. If she walks out there, she runs the risk -- [16:10:16] WHITFIELD: And she, you're talking, which she?

JONES: If Debbie walks out there, she runs the risk of again seeing a world record set for booing.

PRESS: Yes.

JONES: This would, I mean, now, if she can sneak in there at 6:00 in the morning if there's nobody there, gavel and run out. But if she walks into a full convention, she will be met with an avalanche, a tsunami of booing.

WHITFIELD: So, what's behind her decision to say I want to open and close it?

JONES: It will be talked about all day long. It will be on loop. She cannot do it.

PRESS: Yes. And let me say something else. I don't like that this is all sort of being put on the Sanders' people. Look, I'm a Hillary supporter now, OK? I'm pissed at Debbie Wasserman Schultz not as a Bernie Sanders -- as a Democrat. I want to win the White House. I want this convention to be a model of unity and optimism and everything, not talking about Debbie Wasserman Schultz, damn it. Get out of the way.

WHITFIELD: David?

DAVID CHALIAN, CNN POLITICAL EDITOR: I include the Clinton campaign also doesn't want this distraction all week. And they've been working to come to some kind of resolution here. Van, I have a hard time imagining at this point that she can take the stage in a big before the delegates kind of way. Because I agree with you, I think that has become untenable. I think what you're going to deal with now is, how does she save face a little bit here. Can she indeed hand the gavel over to Marcia Fudge or whomever will actually conduct the gaveling in and gaveling out --

WHITFIELD: He saved that moment --

CHALIAN: -- to just be able to say that she played some role. I think now we're in the negotiation of that. But you see the statement that Debbie Wasserman Schultz put out.

WHITFIELD: It's what I say.

CHALIAN: But this was not from the campaign, this was her trying to get out ahead of laying down her marker in where she is. I don't think it's the final word on where we are.

MARIA CARDONA, CNN POLITICAL COMMENTATOR: That's right.

JONES: Right, right.

CARDONA: So, I suspect that we have not heard the end of this.

WHITFIELD: Right.

CARDONA: I suspect that this is the first step in an evolution of where we're going to end.

WHITFIELD: But isn't that odd, too? On the eve of the DNC, if you have to be thoughtful or find a more concise way in which to, you know, work through your thoughts, why release like the version one and why not wait until version five when it's ready?

CARDONA: First of all, this is a really difficult situation. Secondly, I know that, compared to the Republicans, people were expecting perfection from the Democrats, but we're Democrats. Let's remember that. Okay? And at the end of the day, this was really, really a difficult decision for Debbie. And to her credit, she has worked really hard for this party. My sense is that she will continue to focus on what is best for the party, and she will understand that maybe coming out publicly is not going to be the best reflection for Hillary Clinton who is our nominee and we want to be the next president of the United States. So again, I think that this is the first in an evolution of what will happen at the end of the day.

JONES: She worked hard. God bless her, she worked hard. But it's not just about working hard. It's also about being fair and doing the right thing. If you're the referee, you can't put on a Jersey for the other team. And she did that. And so, nobody is being unfair to her. No referee in the Super Bowl could come out wearing the other team's Jersey and keep their job. The chair has to be fair. If the chair can't be fair, the chair can't be there and she can't be there.

WHITFIELD: Scottie, as a supporter, you know the issue of thrust is been huge. The RNC and also leading up to the DNC, how does this play into that dialogue?

SCOTTIE NELL HUGHES, CNN POLITICAL COMMENTATOR: Absolutely. This is like deja vu from last week. Now, if you guys could tune in -- back and I get to go on the offense, which is kind of nice. I actually I agree with you. I think if she really wanted to do what's best for the Democrats, she would completely step down. We might spend tonight talking about it. Might be a couple of more hands about it throughout the week. But then you can put the focus on the convention. Unfortunately -- fortunately for us, she's not going to do this and I guarantee that story will continue. And we're going to continue to pull out the other staff members. It was not just Debbie Wasserman Schultz who wrote these e-mails. There's a lot more involved.

WHITFIELD: Hers is the prominent name.

HUGHES: But there's a lot of other staffers that is also need to be held accountable for their words.

PRESTON: You know, Fred, here's the problem with her taking the stage. Two things, one, legacy, the booing that will ensue. And I guarantee you the Bernie Sanders folks will show up if she'll be gaveling in at 3:00 or 4:00 in the afternoon.

WHITFIELD: We can actually almost hear many of them now just down -- PRESTON: Right. I mean, like literally, they will show up in what is

usually a pretty empty hall. That's one. Number two, she's got win re-election. Bernie Sanders has already endorsed her opponent. I guarantee you, you will see more progressives now get behind her opponent and that race down there is going to be a pretty ugly primary.

WHITFIELD: All right. Fantastic. Thanks to everybody. And yes, wow, what a day, huh? And fireworks. And we haven't really officially begun.

PRESTON: An hour from now.

JONES: Well, this is no longer Philadelphia. This is reality check for a lot of people in the Democratic Party who when they hear Bernie Sanders' name, they think Dennis Kucinich, some far left guy that got four percent. This is a different welcome to reality, 42, 43 percent of the people are going to be Bernie Sanders' people and it's not going to go down the way they think it will go down.

WHITFIELD: All right. Thanks, everybody. We will see you again momentarily.

CARDONA: Thank you.

[16:15:09] WHITFIELD: And of course CNN will have full coverage of the Democratic National Convention live from Philadelphia beginning officially -- because we're live right now -- but officially Monday afternoon 4:00 Eastern right here on CNN.

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[16:19:27] WHITFIELD: Hello, everyone. And welcome back to Philadelphia. We're live here. I'm Fredricka Whitfield. We're following breaking news.

Party Chairwoman Debbie Wasserman Schultz will step down as the chair of the Democratic National Committee at the end of this week's convention. And we just got this statement from President Obama, for the last eight year, it says.

"Chairwoman Debbie Wasserman Schultz has had my back. This afternoon I called her to let her know that I am grateful for her leadership of the DNC. It has meant that we had someone who brought Democrats together not just for my re-election campaign but for accomplishing the shared goals we have had for our country. Her critical role in supporting our economic recovery, our fights for social and civil justice and providing health care for all Americans will be a hallmark of her tenure as party chair. Her fund-raising and organizing skills were match only by her passion, her commitment and her warmth and no one works harder for her constituents in Congress than Debbie Wasserman Schultz. Michelle and I are grateful for her efforts. We know she will continue to serve our country as a member of Congress from Florida, and she will also be our dear friend."

So we're going to talk much more about this. We heard in a statement from Debbie Wasserman Schultz not long ago, she said she would be stepping down but after she opens and closes the convention. You heard our fiery discussion here. We're going to pick up on that again now that we've heard the President speaking, and we also know that not far from here, just about a five or ten minutes' drive, there's been a large -- a very sizable crowd of Bernie Sanders supporters who are marching to a park near this location.

Some of them have been saying they want to start a third party. Jessica Schneider is there with them. So Jessica, is there any direct reaction coming from the protesters there about this news, this shake- up in the DNC chairmanship?

JESSICA SCHNEIDER, CNN CORRESPONDENT: Exactly, Fredricka. Actually, just a minute ago they came over the loudspeakers. There's a van up in front of us, in front of these protesters, and they shouted across the loudspeakers, in fact, that CNN had just reported that Debbie Wasserman Schultz has agreed to step down after the convention. They came on the loudspeakers shouting Debbie resigned. This crowd -- it rippled throughout this crowd to cheers and elation. But they say that's not the end. Now they're shouting or they were shouting, we will win, talking about Bernie Sanders. They're continually shouting as we walk this three-and-a-half miles steps to the FDR Park which is near the convention, they say that this rally isn't necessarily about one candidate.

This is about the political system. We've heard it throughout the campaign. They say that the political system is rigged, and they want a big change. So about a thousand or more people stretching for blocks behind me walking straight down Broad Street towards FDR Park. These people are going strong despite these very hot temperatures and in the high 90s right now. But we're two miles in, about a mile left to go -- Fredricka.

WHITFIELD: Oh, my goodness, okay. Well, already supporters said that they were going to be protesting because they still want to see the sentiment of a Bernie Sanders, whether he and a Clinton campaign or at least some representation here. That now there is no fodder with the DNC Chairperson Debbie Wasserman Schultz saying that she's stepping down at the end of the convention. It's very noisy. I know, Jennifer -- Jessica is not able to hear us.

So, let me pick up where we left off with our panel discussion. Not long ago. We have Bill Press here. We have got David Chalian, we've got Mark Preston, Maria Cardona, Van Jones. You all are killing me.

CARDINAL: We're going to get nametags.

WHITFIELD: Scottie Nell Hughes. Thank you so much. All right. So, we're going to talk about all of this. We're going to take a short break for now. A lot to chew on, right?

All right. We're going to be right back with all of that. Right after this.

(COMMERCIAL BREAK) [16:27:36] WHITFIELD: All right. Welcome back. We're live in Philadelphia. I'm Fredricka Whitfield. As we're covering breaking developments on the announcement that DNC Chair Debbie Wasserman Schultz will step down from her position at the end of the convention she says. Hillary Clinton just released this following statement saying this, quote, "I want to thank my longtime friend Debbie Wasserman Schultz for her leadership of the Democratic National Committee over the past five years. I'm grateful to Debbie for getting the Democratic Party to this year's historic convention in Philadelphia. And I know that this week's events will be a success. Thanks to her hard work and leadership." End quote.

There's much more to that statement, but that is the crux of it. We're also getting reaction from Donald Trump via Twitter. He wrote, quote, "Today proves what I have always known, that Reince Priebus is the tough one and the smart one, not Debbie Wasserman Schultz." End quote. All right. All of this coming on the heels of those leaked DNC e-mails which has caused a major crisis here in Philadelphia and within the Democratic Party. Earlier today Hillary Clinton's campaign manager spoke with CNN's Jake Tapper on "State of the Union." He suggested those e-mails were hacked by the Russians and released to help Donald Trump's campaign.

(BEGIN VIDEO CLIP)

ROBBY MOOK, CLINTON CAMPAIGN MANAGER: Experts are telling us that Russian state actors broke into the DNC, stole these e-mails and other experts are now saying that the Russians are releasing these e-mails for the purpose of actually helping Donald Trump. I don't think it's coincidental that these e-mails were released on the eve of our convention here. And that's disturbing.

(END VIDEO CLIP)

WHITFIELD: The Trump campaign issued a response calling the allegations a joke saying the Clinton campaign will do or say anything to get elected. Donald Trump is hoping to sway those Bernie Sanders'supporters to his side. Despite Bernie Sanders' harsh words for Donald Trump and his candidacy, the Republican candidate believes he can convince Sanders' loyal supporters to vote for him. Here's Trump earlier today on "Meet the Press."

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: Great respect for what he's done. He's being taken advantage of and, frankly, the system was rigged, and I'm the first one to say it was rigged against him. He has been gamed. He has been -- it's a rigged system against him. And what happened with the choice of Tim Kaine was a slap in the face to Bernie Sanders and everybody -- I was shocked.

(END VIDEO CLIP)

[16:30:02] WHITFIELD: All right. Trump sent out this tweet this morning saying looks like the Bernie people will fight if not their blood, sweat and tears was a total waste of time. Kaine stands for opposite.

Let's talk about this with our panel Van Jones, a CNN political commentator. Maria Cardona is also a CNN political commentator and a Hillary Clinton supporter. Mark Preston is a CNN politics executive editor and Ron Brownstein is a CNN senior political analyst.

All right, thank you so much to all of you. So, you know, Ron...

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Yes.

WHITFIELD: ...you first. I mean this is interesting. Donald Trump, he's very good at leveraging whatever happens...

BROWNSTEIN: Right.

WHITFIELD: ...to his advantage, but he is -- he is really calling upon the Bernie Sanders' supporters...

BROWNSTEIN: Yes.

WHITFIELD: ...who are here in large numbers protesting down Broad Street...

BROWNSTEIN: Yes.

WHITFIELD: ...making their way here and Donald Trump is saying come over to my side.

BROWNSTEIN: If you did the Venn diagram of the concerns of the Sanders' supporters and the Trump supporters, they would mostly be like Los Angeles and New York, there's one overlap...

(LAUGHTER)

BROWNSTEIN: ...there's one overlap in Michigan on trade.

UNIDENTIFIED MALE: Right.

BROWNSTEIN: ...but, you know, on everything else on immigration, on gay rights, on universal access to college, on tax policy where Donald Trump is proposing an enormous tax cut, disproportionately tells it towards it all, there's very little in common. I think the bigger risk for Hillary Clinton not so much of Bernie Sanders' supporters voting for Donald Trump but particularly with those younger votes.

You know, 60% of millennials voted for President Obama in 12, 67% in 08 she is way under polling it. And the risk is not so much that it will end up with Trump but that it will end up Gary Johnson and Jill Stein. And that you see that for example poll at New Hampshire last week, 25% of voters under 35 were voting for one of the third party candidates.

That's a real risk but I don't think there are that many Sanders' supporters who can find their way to Donald Trump.

WHITFIELD: So, Mark is the Clinton camp counting on Bernie Sanders' message when he takes to the podium there to speak to, to give some direction to his supporters that while he's throwing his support, they should, too.

PRESTON: Yes.

WHITFIELD: Because I talked to a few, you know, getting off the plane and they said he may be throwing his support, but we're still not on board either.

PRESTON: Yes, they're still not on board, yet. But to Ron's point here, we're talking about populism and preaching populism. Donald Trump preached the flavor of populism, as did Bernie Sanders. Guess what, they're two different flavors, right?

(CROSSTALK)

PRESTON: ...there is total different flavor and the overlap was trade. But the bottom line is if you're a Bernie Sanders' supporter, you are not a Donald Trump supporter.

WHITFIELD: Yes.

PRESTON: That is the biggest red herring we've seen from Republicans, you know, up to this point. Bernie Sanders has an opportunity at this point for his own career and his own legacy to try to say let's bring the party together. Much like Ted Cruz had that same opportunity and he squandered that opportunity at that convention the other -- last week.

WHITFIELD: Right. Maria.

CARDONA: Let's remember also that Hillary Clinton, while she definitely has those challenges and she has admitted those challenges and has committed to work her heart out to make sure that she reaches out to all the voters that are the Obama coalition, she also has Obama. She also has Michelle. Michelle is incredibly popular with millennials. She has Elizabeth Warren. She has Vice-President, Biden who is also incredibly popular with millennials. He is Uncle Joe, right?

And so, I think what you're going to see this week is that contrast versus what happened last week which is the complete debacle at the Republican convention. So, I can see why Donald Trump is trying to take advantage of anything that he might see in terms of a division of the Democrats because his convention was so completely the opposite. It was dark. It was dismal. This convention is going to be about hope and optimism in bringing the country together.

WHITFIELD: And Van, Elizabeth Warren, you brought up the name, and you know, hearken to the thought where she was so vocal for a period of time and now very quiet as her lead in here. What does that mean, if anything?

JONES: Well, I mean she started to speak back out again. I think during that last possible vetting process for the VP...

CARDONA: Yes.

JONES: ...she might have thought it was smarter to be a little bit more quiet. But listen, I just want to make sure we don't get too far from reality here. There were -- I remember hearing and it shocked me, it really surprised me to hear people saying I'm either going to vote for Sanders or I'm going to vote for Trump.

Yes, this is, you know, back during the primary process because people are trying to sort out the insider versus the outsider thing. I think that the numbers show that that's kind of dwindled quite a bit, so I think that you're right. But there is a hunger for an outsider still. And I think that for the younger voters, I don't think it's a question of do I vote for Trump or do I vote for Hillary, it's a question of do I vote at all?