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Secret Service Turned Over Single Text Exchange About January 6; Biden Preparing Executive Action on Climate After Manchin Sinks Bill; Goldman Sachs CEO Details His Economic Concerns to CNN. Aired 10-10:30a ET

Aired July 20, 2022 - 10:00   ET

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

POPPY HARLOW, CNN ANCHOR: Single text exchange to the DHS inspector general following a request for a month's worth of records.

[10:00:06]

This is according to a letter sent to the January 6 committee and obtained by CNN. The Secret Service has turned over thousands of documents to the committee, but it says text sent on the key dates of January 5th and 6th were lost during the phone migration. We'll have much more on that in just a moment.

JIM SCIUTTO, CNN ANCHOR: Plus, all 16 fake Trump electors who signed a bogus document to subvert the 2020 election are put on notice by the Atlanta area district attorney, Fani Willis, that they could be indicted. All of them now targets of an ongoing criminal investigation. What does that mean for them and for the former president? We'll discuss that investigation goes on.

Let's begin though, CNN Law Enforcement Correspondent Whitney Wild who has been following the Secret Service texts.

Now, The Secret Service has said from the beginning, we are an open book. We've been sharing he everything we can and if there was any issue, it was just because we were migrating from old phones to new phones. Is that becoming less credible?

WHITNEY WILD, CNN LAW ENFORCEMENT CORRESPONDENT: Well, here is the problem. There is a timeline here that sort of jams that narrative up and here is why. The first request for preservation of records came from Congress on January 16th. This email migration happened on January 27th. And our understanding is that they were told in December and then again on January 25th how to preserve those records, that if they were going to do it, they would need to do it themselves. This was -- basically, one of these emails you might get at your own office from your chief information officer saying, hey, we're moving to a new system, so if you are going to upload your documents, you have to do it yourself.

Right now, the Secret Service again continues to say, look, we're doing everything we can to try to rectify that. So, for example, they have handed over about 10,000 records to the House select committee. They have this cover letter explaining what they are trying to do to rectify the situation and what they are going to do moving forward and what they can expect to see in this 10,000 records.

They also say that they are continuing to do this forensic examination of cell phones just to be certain that if there was something that was improperly deleted that they will be able to get it back. But, again, they are basically chalking this up to happenstance. This is, in retrospect, really, ill-timed. But the question is, were people told exactly what their obligations were and did they follow their obligations. And the reality here is that you are required by law to keep certain records. So, this has huge implications. There are so many open questions still, House select committee trying to get to the bottom of that.

SCIUTTO: But just briefly, the Secret Service does its own investigations and is really good at tracking down communications, including text messages. Are we to believe that they can't track down their own?

WILD: Well, that is the question that we are continuing to ask. Here is the problem though. I mean, the thing that I think has helped me sort of understand where they are coming from is remember that this group is chiefly the protective body. And so it is really important to them that records don't get out. And so, really, that is their chief concern, they are very concerned about hacking, they're very concerned about text messages being intercepted because it's a protective issue at the end of the day.

So, these text messages, being lost, what I'm told, is that if there that was something improperly lost or was not improperly, that was just lost by happenstance, it's very unlikely that they will be able to get that back. Still, they understand how serious this is. Still, they are continuing to do this forensic investigation.

And further, you know, I've heard over and over and over that they feel like that they have handed over a lot of records that would help supplement whatever substance of a text might have been lost. So, for example, they have already handed over 800,000 emails, they have handed over 800,000 emails to investigators, as well as around 7,600 teams chats about these crucial details from those days. So, it remains to be seen what happens.

HARLOW: Okay. We'll see. Single text exchange, Whitney Wild, thanks for the reporting.

Meantime, Steve Bannon in court for his contempt of Congress trial for defying the January 6 committee's subpoena for months. In their opening statements yesterday, Bannon's lawyers called case politically motivated while prosecutors say Bannon believed he was, quote, above the law.

SCIUTTO: CNN Senior Crime and Justice Reporter Katelyn Polantz is outside the U.S. district court in D.C.

So, Katelyn, a lot of predictions going into this, that this was going to be a fairly quick trial. What do we expect? Is it possible it's wrapped up before the prime time hearing tomorrow night? KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE REPORTER: Well, Jim and Poppy, we're going to have to see how today goes in court, how much stop and go there is of the lawyers talking to the judge outside of the ears of the jury. We already had one of those discussions this morning. And, really, what the prosecutors brought up first thing as soon as the judge sat down was they wanted to address how much this case is going to be about politics. They fear that Bannon is going to try to make it about politics.

Yesterday, Bannon outside of court was railing about the House select committee chairman, Bennie Thompson, not coming in testify and you mentioned even his defense counsel in opening statement yesterday did suggest that the jury might want to consider the political motivations of some of the evidence here.

[10:05:05]

And Prosecutor Amanda Vaughn stood up this morning 9:00 A.M. sharp, and she said to the judge that they cannot allow this to be called in front of the jury or even to try and hint to the jury with their questioning that there was a politically motivated prosecution here.

The defense counsel, Evan Corcoran, he then got up and told the judge, we don't intend to make this a political circus. But, ultimately, the judge came down on the side of the Justice Department and is saying, no, we're not going to go there. You can ask witnesses about their own personal biases and motivations but we're not going to get into how Congress voted or how Congress may be may up Democrats on this committee, largely even though there are some Republicans there.

And I want to read the quote from the judge this morning, a very strong statement from Judge Carl Nichols, who is, I will say, a Trump appointee. He said, I do not intend this to become a political case, a political circus, a forum for partisan politics. Jim and Poppy?

SCIUTTO: Katelyn Polantz, thanks so much.

Joining us now, former U.S. Attorney Michael Moore and CNN Political Commentator S.E. Cupp.

I would always like to go big picture as often as we can. I mean, we're a year-and-a-half out from January 6, you have the investigation in Georgia, you have the January 6 committee hearings, you have the DOJ looking at things potentially. But for the ringleaders, right, including the former president, no one has been charged. And we learned, this according WISN, it's a Wisconsin affiliate, that just last week, the former president called the Republican assembly speaker there to try again to convince the state assembly of Wisconsin to decertify the 2020 election results.

Michael Moore, you've been in law a long time. Has the U.S. legal system effectively policed and penalized Trump's attempt to overturn the 2020 election if he is still trying a year-and-a-half out? What should that say to folks watching right now as to whether the legal system is working to prevent this kind of thing? MICHAEL MOORE, FORMER U.S. ATTORNEY: Yes, and I appreciate being on with all of you. You know, I think they have been terribly slow, whether we're talking about in the federal court process or whether we're talking about the state investigations that have gone on. It is almost unbelievable to think that we're a year-and-a-half out and we're still not really much closer to this and we're still trying to make the bridge. So, no we haven't taught him or other people that, in fact, you can't do this type of thing.

But remember that we've got testimony very recently from Pat Cipollone who said that he believed that Trump believes that the election was stolen. This is not some scheme. I mean, in his mind, he truly believes that.

SCIUTTO: Michael Moore, come on. The courts -- there is no facts to back that up. You or I could believe anything. Does that legally protect you from the accusation of trying to overturn the election?

MOORE: I'm not a Trump defender and I'm not here to tell you that I think that anything he thinks is rational. I mean, I'm not suggesting it is a rational position. I'm just suggesting to you that when they start talking about things, like intent, when they start talking about things like the criminal elements necessary to prove the case, they have got to find that he set up this scheme and they have got to have this bridge between his intent and what he told people and the actions that were taken, and that is what they have been missing. And so that is the problem.

And I think that is why you are seeing some of these investigations going on and, frankly, I think that is one of the reasons that you are seeing a relatively slow case if they are reviewing it in the Justice Department. So, that is sort of where we are a year-and-a-half out.

HARLOW: So, S.E., I mean, this change, this news overnight that in Fani Willis' investigation, 16 of these electors and this push for fake electors, et cetera, to try to undo the legitimate results of the election have gone from witnesses in her investigation to targets. It's huge. I mean, it is really significant. And key Republican names among them, including David Schafer, a Trump ally who chairs the Republican Party in the state of Georgia, Burt Jones, a Georgia state lawmaker running for lieutenant governor, big, significant names in your party, in the Republican Party, now targets. What do you make of it?

S.E. CUPP, CNN POLITICAL COMMENTATOR: Well, I think to Jim's point, people who have been watching this close are probably thinking, finally, we're getting close to some consequences here. I think it has really baffled most Americans to watch such cartoonish, blatant attempts at frauding American voters as these fake electors go completely unpunished.

And the Trump era was really defined by this sort of no consequences, no accountability, and I think a lot of people thought, well, once he is out, certainly with the new administration and a new DOJ and, well, certainly, there will be some accountability for all of this wild election-rigging and election fraud attempts. [10:10:00]

And like you've said, we've seen very little.

So, I think people are thinking the Georgia probe is heating up, that is good news. Somewhere, sometime, someone is going to have to pay for all of this. And that is important because you've seen, Poppy, all of these Republican secretary of state candidates running on platforms promising to continue to sow the seeds of doubt on elections and even overturn election results that they don't like, they're doing that because they feel emboldened, they're doing that because there have been no consequences.

SCIUTTO: Well, we have, for instance, an election-denier win the Republican nomination in Maryland, which, by the way, is borders the U.S. Capitol where January 6 happened here.

As you know, S.E. Cupp, Democrats are, I might say, playing with fire here by backing some of these Trumpist candidates in these races and might have made a difference in Maryland. Is that good idea?

CUPP: I think it -- well, it's definitely not a good idea. I think it is worse than risky. I've called this money blood money. You know, back when stories of Democrats propping up Doug Mastriano and others in California, Trumpy candidates all over the country really hoping that they end up being the nominees for the Republican Party because they think they are easier to beat. I mean, have we learned nothing from 2016 that the characters you think are unelectable might just be electable now?

And I think it is worse than playing with fire. I think it is completely negligent. I think it is malpractice. And I think if I'm a democratic voter that is given money to the DJA or the DNC, the Democratic Party or Nancy Pelosi's PAC, I'm pretty sure I didn't intend it to go to these Trumpy candidates.

SCIUTTO: That's a good point.

HARLOW: The idea was build them up and then they can't win in the general, but it is a risk, big one.

S.E., thanks, Michael Moore, great to have you both.

Still to come, Goldman Sachs CEO David Solomon joins us with his take on where the Biden administration should focus their efforts on the economy and why he says inflation in the U.S. may not have peaked yet.

SCIUTTO: Next, President Biden will address his administration's response to the climate crisis as a heat wave sweeps the country, Europe as well, bringing dangerously high temperatures, fueling wildfires and droughts.

Also this, Ukraine appeals to the U.S. to send more long-range weapons systems that it says are working. They are slowing Russia's advance. I'm going to speak to General David Petraeus later this hour for his view. (COMMERCIAL BREAK)

[10:15:00]

SCIUTTO: In just a few hours, President Biden is expected to drought line his next steps in tackling the climate crisis. This announcement comes six days after Democratic Senator Joe Manchin, along with all Senate Republicans, torpedoed negotiations aimed at getting a climate bill through Congress.

HARLOW: The backdrop to all of this, more than 100 million Americans under heat alerts right now, that brutal temperatures likely continuing across the south spreading into the northeast certainly in the coming days.

Let's get to our Athena Jones, our colleague who is covering all of this. Good morning, Athena. I mean, what a backdrop. You're looking at temperatures across the country. What a backdrop to what Biden is going to do today.

ATHENA JONES, CNN NATIONAL CORRESPONDENT: Good morning, Poppy. Absolutely, it's going to be a very, very hot day. You can see I'm here in Central Park at the playground with sprinklers. This is the kind of place that is very, very popular on a day like this. But we are talking about dangerous levels of heat impacting much of the country. More than 80 percent of U.S. population is going to be experiencing high temperatures above 90 degrees for the next several days.

Now, much of the heat we've been talking about so far has been affecting the south and the west, heat so punishing that some cities, like Miami and Phoenix, are now hiring heat officers to deal with the worsening crisis caused by this warming planet.

Here is David Hondula, he is the director of the Office of Heat Response and Mitigation in Phoenix, talking about the dangers of extreme heat.

(BEGIN VIDEO CLIP)

DAVID HONDULA, DIRECTOR, OFFICE OF HEAT RESPONSE AND MITIGATION FOR PHOENIX: Heat can affect everyone. We're all at risk. And, unfortunately, one of the first symptoms of heat exhaustion is that we become a little disoriented, a little confused. So, please trust your body. If you are feeling any suggestion that you might be in trouble, take it easy, find a way to take a break.

(END VIDEO CLIP)

JONES: And now that heat wave has reached the northeast, where we could see record-highs over the next several days. Heat advisories are in effect today in Philadelphia, here in New York City and in Boston. Boston's mayor, Michelle Wu, declaring a heat emergency. And, of course, the problem is the heat index. That's the feeling of the heat, plus the humidity, that could be near 100 degrees. Here in New York City, public pools are remaining open late and health officials have opened cooling centers, advising folks to stay inside, if you can, drink plenty of water and be sure to check on your neighbors. Poppy, Jim?

SCIUTTO: Good advice there. Athena Jones, thanks so much.

HARLOW: Thanks, Athena.

Now to Europe where the U.K. has already seen record-high temperatures, now Sweden and Germany on high alert for record heat as well. You have got wildfires sparked and fueled by extreme temperatures burning across Spain, France and Greece.

SCIUTTO: Right now, at least 20 different countries across Europe are under heat warnings.

CNN's Salma Abdelaziz is in London, where several fires broke out yesterday as temperatures hit 104 degrees there.

Listen, these, sadly, have become familiar scenes for us in the U.S., particularly in American west and the southwest. I mean, to see those kinds of fires in the U.K, I mean, it's truly, truly beyond the pale.

SALMA ABDELAZIZ, CNN REPORTER: Record-breaking temperatures, Poppy and Jim, over 40 degrees Celsius, that is more than 104 degrees Fahrenheit. I'm standing in one of those effective suburbs, Wennington. They are fires raged for nine hours while nearly 100 firefighters tried to put them out.

[10:20:04]

Dozens of people were, of course, evacuated from their homes.

And it is not just these fires that were raging around London. This ring of fire essentially in the suburbs around the city, it is also about public transport, much of it having to shut down, people unable to open their businesses. And you have to remember, unlike in the United States, here in Europe, most people don't have A.C. That means this becomes extremely dangerous, even just staying at home becomes a challenge.

U.K. authorities say this was the worst day. Yesterday was the worst day ever for the London Fire Brigade since World War II.

And, yes, today here in London, we're finally seeing those temperatures drop, it is beginning to cool, the fires that were raging behind me here yesterday have been contained, have ended now. But across other European countries, some fires are still raging.

In Spain, authorities there, the Spanish prime minister just saying a short time ago, warning everyone to take extreme caution. He says that about 500 people have died in this heat wave in the last several days. In France, French President Emmanuel Macron visiting the site of an area twice the size of Paris where fires were burning there as well. And the reality is as European leaders are trying to figure out what do right now, right here, about this crisis, they also have to look at the future because climate scientists say that these temperatures are going to rise and Europe simply doesn't have the infrastructure to deal with it.

HARLOW: Salma Abdelaziz, it is mind-blowing what's happening. Thanks very much for the reporting from there.

Ahead, you will hear from the Goldman Sachs CEO, does he think we've hit peak inflation. Also, he weighs in on guns and safety after a Goldman Sachs employee was killed just a few months ago on a New York City subway.

(COMMERCIAL BREAK)

[10:25:00]

HARLOW: All right. So, has the U.S. hit peak inflation? This morning, I asked the CEO of Goldman Sachs that and also what worries him most about the economy as we face 40-year high inflation, the biggest interest rate hikes in decades and the impact of Russia's war in Ukraine on energy and food.

(BEGIN VIDEOTAPE)

DAVID SOLOMON, CHAIRMAN AND CEO, GOLDMAN SACHS: The confluence of a bunch of unusual events at the same time is a different mix than we've seen before. So, a pandemic that completely shut down economic activity around the world at the same time for a significant period of time, the size and the amount of the fiscal policy and the fiscal stimulus combined with really the fact that we have monetary policy very, very dovish for a long, long time, and then with the war in Ukraine on top of that, we've created a much more complex macro environment and we have to kind of unwind or rebalance some of that and that's going to take some time.

HARLOW: Was it too much stimulus coupled with those other things? I mean, Lloyd Blankfein, your predecessor, said a few weeks ago, we have too much growth, too much stimulus.

SOLOMON: I think it's very easy with hindsight to say if you are going to back and rewrite the play --

HARLOW: You would write it differently?

SOLOMON: You would write it differently.

HARLOW: Well, it's an important lesson, right?

SOLOMON: Well, of course, it is an important lesson, but it's also -- we were going through a very difficult period, an unknown period during the pandemic, and people needed help. There were people that needed support. Unfortunately, we're not really great at directing in a very specific way to people that need help. We wind up kind of directing it very bluntly (ph) -- HARLOW: You would have gone smaller, done it differently?

SOLOMON: I would have gone smaller and tried to be very directed to the people that need help and not necessarily getting so deeply embedded through the economy. There are some that might disagree, but I think in hindsight, when you think about the size of the numbers, the amount of money that went out, through two administrations, by the way, it is quite significant and it has had an effect.

HARLOW: Do you believe 9.1 percent is peak U.S. inflation? Are you preparing for an environment of higher inflation? The U.K. just hit 9.4 percent this morning.

SOLOMON: I think you have to prepare for an environment of higher inflation. And the reason I say that, if you listen to our economists, our economists are saying they think that we might be getting to peak inflation. But if you get out and you talk to the business community, most of the big business, you know, people that run big businesses, big supply chains, still say they don't think inflation has peaked. They see inflation continuing to move.

So, our base case in thinking about this, we think there is a good chance that we haven't quite reached the peak yet.

HARLOW: How do you think that the Biden administration is handling the economy? When you look at numbers like 82 percent of Americans feel like economic conditions are poor, how is the Biden administration handling this?

SOLOMON: I think the Biden administration needs to be very focused right now on doing what it can do to take policy action, some of which we talked about, to help dampen this down. They have got to recognize that this is not a short-term thing. They live in election cycles --

HARLOW: It's not transitory?

SOLOMON: Well, it's definitely not transitory.

HARLOW: And you said they live in election cycles. Finish that thought.

SOLOMON: I'm not a politician, but I know when you think about being a politician, you know, you've got election cycles. And so at the moment, a lot of through the lens of the fall's election cycle, next thing would be the lenses of next election cycle. I think some of the things we're dealing with require us to try to put policy in place that can last across administrations.

HARLOW: So, not focusing on things like a three-month gas tax holiday, for example, bigger picture stuff?

SOLOMON: Yes. I didn't think -- personally, I didn't think that that particularly was a great long-term idea.

HARLOW: The Supreme Court a few weeks ago overturned Roe versus Wade.

[10:30:00]

You've sent this memo to employees saying, I know many of you are deeply upset and I stand with you.