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Hunter Biden's Lawyers Strike Back; McCarthy Debt Limit Bill; Bed Bath & Beyond Files for Bankruptcy; Teens Injured in After-Prom Party; NAACP Sues Over New Policing in Jackson; NBC Universal CEO Stepping Down. Aired 9:30-10a ET
Aired April 24, 2023 - 09:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[09:30:00]
JOHN BERMAN, CNN ANCHOR: Susan Rice, who is the White House domestic policy adviser, is stepping down. Rice joined the Biden administration just after the inauguration in 2021. She held a number of previous positions. She was the U.S. ambassador to the United Nations under President Obama, and then ultimately his national security adviser.
When she joined the Biden White House, as I said, she was a key adviser leading domestic policy. President Biden thanked Rice for her work in the administration, writing, quote, there is no one more capable and more determined to get important things done for the American people than Susan Rice.
Kate.
KATE BOLDUAN, CNN ANCHOR: All right, moves happening.
There's also this into CNN. Hunter Biden's lawyers are making another big offensive push to defend him against Republican investigations in Congress. CNN has learned that his legal team is now demanding an investigation into why a Trump aide had Hunter Biden's banking records and they also are going after Congresswoman Marjorie Taylor Greene.
CNN's Paula Reid has this new reporting and she's joining us now.
Paula, what's going on here?
PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT: Well, Kate, this is part of a more aggressive strategy by Hunter Biden's legal team that has been implemented over the past several months as the criminal investigation into Hunter Biden appears to stall and, of course, Republicans took over the House and made it crystal clear that Hunter Biden would be one of their prime targets.
Now, in these letters that were sent today, the first letter to the Treasury's Office of Inspector General, Biden's legal team is asking for an investigation into how former Trump aide Garrett Ziegler came to obtain and allegedly post suspicious activity reports, known as SARS, related to Hunter Biden. They allege that this is, quote, an illegal conspiracy pointing to comments that Ziegler made on Steve Bannon's podcast late last year where he alleged to have an insider inside one of the banks helping him to get this information.
Now, we've been told by a source familiar with the legal strategy that Ziegler is a primary focus for the legal team right now. They have also filed a lawsuit accusing him of harassing lawyers on Hunter Biden's team. We've reached out to Ziegler's attorney for comment.
Now they also sent a letter to the ethics office seeking an investigation into Representative Marjorie Taylor Greene for her comments which they allege have been derogatory about Hunter Biden, as well as her, quote, promotion of conspiracy theories and publication of personal photos and data.
Now, the Treasury Office of Inspector General did get back to us. They said they have received this letter and they are reviewing it, but we have not heard back from the congresswoman's office.
BOLDUAN: Paula, you're also hearing that Hunter Biden's legal team is going to be meeting with the Department of Justice. What are you hearing about this meeting?
REID: That's right, Kate. We broke this story on Friday. This is expected to be what is described as a routine meeting. We've learned that it was Hunter Biden's legal team that actually requested this meeting, seeking an update on this long-running investigation into their client. We've learned that in attendance is expected to be at least one career Justice Department attorney, as well as the Trump- appointed U.S. attorney, who has stayed on after former President Trump left office and has been overseeing the investigation into Hunter Biden.
Of course, that raises the question, what exactly is going on with that criminal probe? We've learned from our reporting that prosecutors have narrowed possible charges down to a few possible tax crimes and possibly one charge related to a false statement in connection with a gun purchase. But, of course, no charges have been filed up until now and there really haven't been any public events. This is the first thing that's actually happened publicly in this investigation in a long time, but I am told, Kate, we are not likely to get a final disposition on the case from this meeting this week.
BOLDUAN: OK. Let's see. Great to see you, Paula. Thank you.
Sara.
SARA SIDNER, CNN ANCHOR: All right, let's turn to Capitol Hill where House Speaker Kevin McCarthy faces a pivotal week. McCarthy wants to unite his party around him to pass his $1.5 trillion bill that would raise the debt ceiling for a year in exchange for deep spending cuts. McCarthy says he will bring the plan up for a vote this week. He also invited President Biden to discuss the debt ceiling with him, but the White House has repeatedly said it will not negotiate over a debt ceiling increase and will only accept a clean proposal to raise the nation's borrowing limit.
CNN's Lauren Fox is tracking all of this. She joins us now live.
This is perhaps McCarthy's biggest task that he's had to put forward since becoming speaker. How is he planning to thread the needle here?
LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Yes, Sara, a lot is on the line for House Speaker Kevin McCarthy. Over the weekend he and his leadership team working overtime to try to shore up the votes that they need for this proposal later this week when it comes to the floor. They are optimistic that the votes are going to be there, but he can only afford to lose four Republican members of his party. And conservatives are calling for more substantial cuts than what is in this proposal already. Leadership not thinking that they want to change this bill at this moment knowing that if they start to tweak it now, they could run into problems with their more moderate members who are backing them up right now.
[09:35:05]
So that is what leadership is facing.
But the reason that this is so crucial for Kevin McCarthy is that this proves to his conference he can unite them, as well as proves to the White House that Republicans are going to stand together in this fight on the debt ceiling. If he can't get the votes that he needs, the problem is that the White House can point back to House Republicans and say, look, Republicans aren't united. The only solution is to have a clean increase of the debt ceiling. And that is the position that we're going to negotiate on.
The question remains, is Biden going to sit down with Kevin McCarthy if Republicans can pull that off? We just don't know right now.
Sara.
SIDNER: We will obviously have to wait and see.
Lauren Fox, on Capitol Hill for us, thank you so much.
John.
BERMAN: All right, on the brink. That is where troubled retailer Bed Bath & Beyond finds itself this morning. The company, which is widely known for its 20 percent off coupons, announced Sunday that it's filing for bankruptcy and will, quote, begin winding down operations. This is a stunning turnaround for a chain that once had more than 1,000 locations, which were stacked from floor to ceiling with pots, pans, towels and bedding.
CNN chief business correspondent Christine Romans is here.
Where do I get a bathmat now?
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Yes. Exactly.
BERMAN: I mean what does this mean for my coupons? I have so many questions.
ROMANS: And the whole business model was, you get in there for the bathmat and you bought everything else, too. A comforter and a bunch of stuff you didn't even think you needed. This was a successful model for a long time, but it isn't anymore. And your coupons are good just through tomorrow. May 8th, gift cards. If you have gift cards, find them and use them. Gift cards are due until May 8th. And then returns are good until May 24th. That's when these stores start to really close.
And this is a big going out of business sale. No question. You've got 360 Bed Bath & Beyond stores that will be closed by June 30th according to the company in its bankruptcy filing. Buy Buy Baby, is also owned by this company, those -- 120 of those stores will close as well. And this is 14,000 employees we're talking about here who will lose their jobs.
BERMAN: The coupons by tomorrow?
ROMANS: By tomorrow. Find the coupons, use the coupons if you want. But you've seen some of these empty shelves, right?
BERMAN: Yes.
ROMANS: I mean they've secured the financing to sort of wind down, but this is a gigantic going out of business sale. There were some management missteps along the way. You know, you could say an uncertain retail environment. But, really, big, big competition from Amazon, Target, Walmart, the other big box retailers. This is a company that tried to turn itself around and just couldn't. It really pivoted to private labels. And that worked at Target. It did not work at Bed Bath & Beyond.
BERMAN: I was (INAUDIBLE), they were profitable until 2019.
ROMANS: I know. That's absolutely right. They were profitable for decades and then just turned around very, very swiftly. This is, you know, bed bath and bankrupt here.
BERMAN: Ah, I see what you did there.
All right, I know where I'll be tomorrow.
Christine Romans, thank you very much for that.
Sara.
SIDNER: Coming up, a bill in Texas that would require public school classrooms to display the Ten Commandments now heads to the state house of representatives.
Also in Texas, prom night memories turn into a nightmare when nine teens are injured during a shooting at an after prom party. We'll have those stories ahead.
(COMMERCIAL BREAK)
[09:42:27]
BERMAN: On the radar this morning, a White House meeting between President Biden and three Tennessee lawmakers who made national headlines protesting over gun reform. Justin Jones and Justin Pearson were both expelled from the Republican-led statehouse and then reinstated by their local city councils. The White House says today's conversation will focus on gun laws.
Scary moments caught on tape at Disneyland in California. An animatronic dragon went up in flames in the middle of the "Fantasmic" show Saturday night. Everything I said there is actually true. All staff and visitors were evacuated and the fire was put out without anyone getting hurt.
And in Texas, the state senate passed a bill making it mandatory for every public school classroom to display a copy of the Ten Commandments. The wording also specifies it must be in a size that makes it legible from anywhere in the room. The bill now heads to the Texas house of representatives.
Kate.
BOLDUAN: All right, let's stay in Texas but for a very different reason right now. Officials are investigating a possible connection between two shootings in east Texas. One at an after prom party. At least nine teenagers are recovering from what's being described as non-life-threatening gunshot wounds from that shooting.
CNN's Ed Lavendra, he's joining us. He's tracking this.
What more are you learning about this, Ed, and the investigation now to a possible connection?
ED LAVANDERA, CNN SENIOR NATIONAL CORRESPONDENT: Good morning, Kate.
Well, Jasper County sheriff's officials say that the first shooting happened just after midnight early Sunday morning, as you mentioned, at an after prom party. At least nine teenagers wounded with non-life- threatening injuries. They were taken to two different hospitals. Investigators say they do not have a motive or what led to this shooting.
But investigators are also saying that there was a second shooting. Exactly when that shooting happened, we're not exactly sure. But investigators say that the vehicles involved in the second incident were also present at the first shooting. So, they're continuing to look into a possibility of a connection between both of those incidents.
This shooting erupted, as we mentioned, at this - at a home on the north side of Jasper, which is a community in southeast Texas, north of Beaumont. And it was just after midnight when the shooting erupted. Nine teenagers wounded. Investigators saying that they will be fine. They were treated at two hospitals. But, clearly, a great deal of concern of another violent night following a night of what was supposed to be, you know, common festivities. A night of prom turned into this violent situation.
Kate. BOLDUAN: Absolutely. Much more to learn here, Ed. Thank you.
[09:45:02]
Sara.
SIDNER: A state takeover of Jackson, Mississippi, is what the NAACP is calling new legislation there which the group is now suing over. These laws signed last week by Governor Tate Reeves will expand state police jurisdiction in Jackson and establish a new court system in a district created by the state.
CNN's Isabel Rosales is following the story for us.
OK, so critics are saying that the two laws put mostly white conservative state officials in charge over a democratic city which is 80 percent African American. Can you tell us what more details you have learned?
ISABEL ROSALES, CNN CORRESPONDENT: Sara, good morning.
There are certainly concerns of black leadership getting undercut here and of a slippery slope potential happening. Others, meanwhile, are hopeful with these new laws, saying that the police force needs some help here. That this could save the capital city after a spike in crime.
Specifically, they point to the homicide rate, which has doubled in the past decade in Jackson, at 12 times the national average, peaking in 2021, making Jackson one of the deadliest cities in the United States.
So, let's talk a little bit about what these new laws do and what will happen in Jackson. It will allow the state of Mississippi to expand state-controlled police to the entire city of Jackson. This is a force that has not -- has primarily focused on protecting the capital and the surrounding areas, has not been involved with law enforcement in the city. This is a force that does not answer to local officials but rather state-appointed leadership.
The other side of this is the judicial system. Major changes coming to that, including new court -- a new court with a judge appointed by the Republican state chief justice, and also prosecuting attorneys appointed, again, by the Republican state attorney general.
One of the supporters of these new laws is the man who signed them into law. That's the governor, Tate Reeves. Here's what he had to say.
(BEGIN VIDEO CLIP)
GOV. TATE REEVES (R-MS): Jackson has so much potential. I've lived in Jackson for almost a third of my life and I want what's best for Jackson. But for us to continue to see young kids getting killed in the streets, for us to continue to see property crimes that are happening here that are causing businesses to leave, we've got to make sure that we have law and order. (END VIDEO CLIP)
ROSALES: And, Sara, one of the focal points to this controversy is representation. You were talking a little bit about that. But the legislators who introduced these bills originally represent districts outside of Jackson. The state legislature is primarily Republican and white. Meanwhile, the city of Jackson is over 80 percent black and primarily Democratic.
The NAACP did electronically file a lawsuit on Friday when these bills were signed into law, and here's what they had to say. Lawmakers and Jackson residents have opposed both bills throughout the legislative session citing outside attempts to increase policing without adequate training, silence dissent from Jackson residents and strip residents of their voting powers to elect judges and district attorneys who serve their interests.
And, Sara, these laws go into effect July 1st. We have reached out to the governor's office and also the Mississippi Department of Public Safety to get a better understanding of how they're going to implement these laws. We have not heard back.
SIDNER: This city knows what a fight is like. They're also dealing with a serious water crisis there.
Isabel Rosales, thank you so much for the details on that.
John.
BERMAN: All right, the CEO of NBC Universal says he is stepping down over an inappropriate relationship.
And a skier's death-defying plunge down a glacier in the Alps, it's all caught on camera.
(COMMERCIAL BREAK)
[09:52:53]
BERMAN: So, what does it look like to fall into a crevasse in the Alps? Well, we now have the answer. This is from a French skier's helmet camera as he fell into this deep crevasse there. The skier belongs to a highly skilled French mountain sports team. You can see him right there falling hundreds of feet initially. He tried to slow himself down by digging his hands and skis into the sides, which I guess seems like a pretty smart thing to do. The fall happened last year, but the team just posted the video to remind people even expert skiers, to not fall into deep crevasses and take proper safety precautions.
So, with the help of teammates, a rope, some pick axes, the skier was able to climb out in just five minutes. And, Kate, I have to tell you, Sara Sidner just told me, she thinks this looks like fun.
BOLDUAN: That's why Sara and I are friends. But is it, most importantly, is it crevasse or is it crevasse, because I have - I'm going to get to this story in just a second but -
BERMAN: You say, I say, I don't know.
BOLDUAN: OK. We will debate this in the commercial break.
On to important news as well.
New this morning, NBC Universal CEO Jeff Shell, he is stepping down. This is after it was revealed that he had an inappropriate relationship with a woman who worked at the company. In a statement Shell said that he deeply regrets his actions.
CNN's Oliver Darcy has the very latest. He's here with me now.
What more are - what more can you tell us, Oliver, about this situation, how it unfolded and also what it means for the company now?
OLIVER DARCY, CNN CORRESPONDENT: A real big shockwave going through the media industry this morning, Kate, as Jeff Shell is ousted over this inappropriate relationship.
We're learning that this woman, who filed the complaint, she filed this in recent weeks. And NBCU engaged an outside law firm and that law firm came in, they investigated. He continued his normal duties as CEO while this investigation was going through. But once that happened, they came back with the results, NBCU acted pretty swiftly.
I'll read you a statement that Brian Roberts, the head over at Comcast, and Mike Kavanaugh, the president, who's going to assuming a lot of these duties, put out. They said, we built this company on a culture of integrity. Nothing is more important than how we treat each other. You count on your leaders to create a safe and respectful workplace.
[09:55:05]
And they go on to say, when our principles are violated, we will always move quickly to take appropriate action as we have done here.
COLLINS: All right. There you have it. Let's see what happens now.
It's good to see you, Oliver. Thank you.
Sara.
SIDNER: Still ahead, Twitter CEO Elon Musk facing more backlash over blue check verification badges. A new twist in that drama.
And the latest on the urgent evacuations underway right now in Sudan as countries race to get diplomats and citizens out. That's ahead.
(COMMERCIAL BREAK)
SIDNER: Tomorrow, President Biden is expected to officially throw his hat in the ring and announce his re-election campaign.
[10:00:00]
Today we're learning the president spent the weekend huddling with advisers at Camp David, finalizing his plans.
BOLDUAN: And crisis in Sudan.
