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New York Steps Up Security Ahead Of Possible Indictment; New York Steps Up Security Ahead Of Possible Indictment; Attorney: Cohen Paid Stormy Daniels On His Own; First Republic Shares Tumble To A New Low; 15M+ People Under Increased Flood Threat In California; Atmospheric River To Dump Rain, Snow On Western U.S. Aired 2-2:45a ET

Aired March 21, 2023 - 02:00   ET

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

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[02:00:30]

ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Hello and welcome to our viewers joining us here in the United States and all around the world. You are watching CNN NEWSROOM. And I'm Rosemary Church.

Just ahead. It may not be today but a decision on a Trump indictment could land soon. And that has law enforcement in New York and Washington beefing up security ahead of potential protests.

Vladimir Putin continues talks with his dear friend Xi Jinping in Moscow in the coming hours. The White House says it's watching the meeting of Russian and Chinese leaders closely. How this visit could impact the war in Ukraine.

Plus, shares in U.S. Bank first republic tumbled to a new low raising the question is the banking system in the U.S. secure or is more turmoil coming?

ANNOUNCER: Live from CNN Center. This is CNN NEWSROOM with Rosemary Church.

CHURCH: Good to have you with us. It is 2:00 a.m. in New York where the city that never sleeps is getting ready for an unprecedented possibility. The indictment of a former president.

A senior law enforcement official tells CNN, Donald Trump could be charged as soon as this week. But that source and one close to Trump's legal team say they don't expect any arrest or court appearance to happen before next week.

New York Mayor Eric Adams says there are no credible threats to the city. But police are taking precautions in case of protests. They are putting up barricades and surveillance cameras. And a police memo tells all officers to be in uniform and ready to deploy in the day ahead.

And in Washington, police have put up fencing around the U.S. Capitol to keep potential protesters away. A former legal adviser for Trump's one time fixer, Michael Cohen says Cohen decided on his own to pay $130,000 in hush money to adult film star Stormy Daniels. That payment is at the center of the case for Manhattan prosecutors. CNN's Paula Reid has our report.

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PAULA REID, CNN SENIOR LEGAL AFFAIRS CORRESPONDENT (voice over): The Manhattan D.A.'s investigation into Trump's alleged role in hush money payments made to an adult film star ahead of the 2016 election is moving ahead full steam.

ROBERT COSTELLO, FORMER ATTORNEY FOR MICHAEL COHEN: I went in there today to tell these people the truth about who the real Michael Cohen is and what he was actually saying at that moment in time.

REID: Attorney Robert Costello appeared before the New York Grand Jury after Trump's legal team requested, he be called to testify about the credibility of former Trump fixer, Michael Cohen. Costello spoke to reporters today.

COSTELLO: He said maybe every three or four minutes, he'd be talking to us while pacing like a wild tiger in a cage back and forth. Back and forth. He was really frazzled. He looked like he hadn't slept three, four or five days. And he just suddenly stopped in the middle of talking about something, pointed at us and he'd say, I want you guys to know, I will do whatever the F it takes. I will never spend one day in jail. He must have said that close to 20 times. This was his mantra all day long.

REID: Costello previously represented Cohen who according to a letter that Trump team sent to the D.A. waive attorney-client privilege. Cohen who has met with the D.A.'s office 20 times and appeared before the same Grand Jury twice is a key witness in this case, which centers around a $130,000 payment to adult film star Stormy Daniels to silence her about an alleged affair with Trump. She was paid by Cohen in the final days of the 2016 campaign.

Now almost seven years later, the grand jury is looking at crimes that include whether Trump falsified business records when reimbursing Cohen for that payment. Cohen was sentenced to jail time after pleading guilty to campaign finance charges stemming from his involvement in the payments.

MICHAEL COHEN, FORMER DONALD TRUMP'S ATTORNEY: This case is not going to be predicated on any one individual, but rather it's going to be predicated on the documents like evidence, the text messages, the e- mails.

REID: On Truth Social over the weekend, Trump predicted he would be arrested Tuesday. And in an echo of January 6. called for his supporters to protest.

[02:05:02]

But his spokesperson said they have received no indication from the D.A. that he will be arrested Tuesday.

REID (on camera): Is your client speculating about an arrest to incite political violence?

ALINA HABBA, ATTORNEY FOR DONALD TRUMP: I don't think he's speculating at all.

REID: Trump denies the affair and any wrongdoing. One of his attorneys, Alina Habba warning that Trump's supporters will lash out if he is charged.

HABBA: If they choose to do so for a misdemeanor, which frankly he didn't even do, it is going to cause mayhem.

(END VIDEOTAPE)

REID: It's not clear if the grand jury will be hearing from any additional witnesses or when the grand jury may vote on a possible indictment. But we're hearing from sources that the former president's legal team does not expect anything to happen on Tuesday. And if there is an indictment this week, they do not expect any self-surrender or initial appearance until next week.

Paula Reid, CNN, New York.

CHURCH: Joey Jackson is a CNN legal analyst and a criminal defense attorney. He joins me now from New York. Always good to have you with us.

JOEY JACKSON, CNN LEGAL ANALYST: Nice to be here.

CHURCH: So, Robert Costello, a Trump ally and Michael Cohen's former legal adviser testified Monday before a grand jury investigating Donald Trump's alleged role in a -- in a hush money scheme. Essentially saying that Cohen is a liar. And he's out for revenge. But Cohen wasn't asked to give a rebuttal on that. So, what impact will Costello's testimony likely have in terms of undercutting Cohen's credibility and, of course, on the probe as a whole?

JACKSON: Yes, so it's important by way of context to understand that this is a grand jury. And a grand jury consists of 23 members, a simple majority of which that is 12, are needed to vote out an indictment. Now, in that process, it's not about proving a case beyond a reasonable doubt as if you were at trial, it's about whether there's reasonable cause to believe that a crime was committed. And the subject of that investigation, that is Mr. Trump would have been the commissioner of those crimes, the one who committed the crimes.

And so, I say that because you're going to have evidence oftentimes that I've never really tried a case in over 20 years where there haven't been conflicts, and one person says A and another says B. So, there's going to be credibility assessments. But in the context of a grand jury investigation, the issue simply is not whether Donald Trump did this, but as the reasonable cause to believe that he did.

And that's the essence of it. And so, while it could be damning that is the contrary evidence that was given in terms of Michael Cohen, it does not mean that the grand jury would not indict just by virtue of that conflict. So potentially a trial jury, if it gets that far, could sort it out.

CHURCH: And given that Trump has predicted already that he will be arrested today, in fact, in just a few hours, and called on his supporters earlier to get out and protest on his behalf. His lawyers are warning that he is -- if he is indicted, then mayhem will ensue. So, how likely is it do you think that Trump will be arrested?

JACKSON: So, you know, when you are indicted, you're arrested. But ultimately, what happens is, there's an arrangement for a surrender. What does that mean? It means that a grand jury having indicted you, and again, it's not convicting you, it's just an accusation that you did it, which makes the case available to then be sent to a trial jury for an assessment as to your guilt. And so, when that generally happens, there is an arrest, but generally, also, the courtesy is extended, particularly, it'll be extended here to a former president to surrender yourself.

And so, the issue is how that is done, whether it's done safely, of course. Securely, of course, people have a First Amendment right to protest. There'll be people who find that this is purely political, should not have happened and is nonsense and there'll be protesting. There are others who will say that it's about time the President was found accountable for something, and therefore they'll be counter protesting.

So, I think that's important. My hope is that they're peaceful, that people express their views as they should in any democracy. But without question, Mr. Trump will have to surrender himself up to answer to the -- to these charges.

CHURCH: So, as we mentioned, Trump thinks this is happening in the coming hours. But when do you expect an outcome on this possible indictment of a former U.S. president? I mean, that is significant, isn't it?

JACKSON: It's majorly significant. Now, we should know that the grand jury apparently reconvenes, at least that's the information tomorrow. That would be Wednesday. And so, it would seem to be that if there is an indictment, it could be voted out as soon as then. And if the indictment is voted out, as soon as Wednesday, then of course, there'll be an opportunity for Mr. Trump to surrender himself.

[02:10:00]

It's also possible that the grand jury may want to hear from additional witnesses which would prolong this particular investigation and the grand jury could go a lot longer than that. So, as we know, now, when they do reconvene, they could vote at that point. Or they could wait, call other witnesses, and certainly issue out of an indictment if they do so at some time later. But that apparently, as of now, is the timeline.

CHURCH: And Joey, how do you think this investigation compares with the other probes looking into Trump?

JACKSON: You know, the Manhattan District Attorney's office, I should know it. I'm an alumni of that office, you know, having served as a prosecutor there. They are very adept at prosecuting these financial crimes because of where New York is, it's the financial mecca of the world. And so certainly, Mr. Trump has a lot to answer for. We know about what's going on in Georgia, which many people believe and, in that case, just for clarity involving, hey, find votes for me, was there some illegality?

We know the district attorney's office there is looking at and investigating and has convened a special grand jury to look at that and there are other investigations of Mr. Trump. But, you know, everything is significant as it relates to any investigation. And so, people say this case is weak. Unlike some of the other cases. I'm not prepared to say that yet. We should also note that a grand jury convenes in secret.

And so, we don't know specifically what that grand jury really did, what they heard for -- from, who they heard from, the nature of the crimes that they're actually considering. And so, until I actually see an indictment, that's when I'll say and assess the strength, the relative weaknesses or where it stands in conjunction with the other cases that Mr. Trump has to answer for.

CHURCH: Joey Jackson, always a pleasure to get your legal analysis. Many thanks for joining us.

JACKSON: Thank you, Rosemary.

CHURCH: All right. Now, let's take a look at the politics of all of this. Ron Brownstein is CNN senior political analyst and the senior editor for The Atlantic. And he joins me now from Los Angeles. Appreciate you being with us.

RON BROWNSTEIN, CNN SENIOR POLITICAL ANALYST: Hey, Rosemary.

CHURCH: So, as we wait to see if Donald Trump gets arrested today, as he predicted, there's concern about what impact his call for protests might have in Manhattan and of course, elsewhere. His own lawyers saying it will cause mayhem. So, what are the political ramifications of all this?

BROWNSTEIN: Well, first, protest obviously is protected by the First Amendment. But the implicit threat of violence that is kind of the backbeat to Trump's communication and that from his lawyers, it's just important to recognize how different in the era of American politics we are in and we are really ever been in before where there is the leader of a national political movement who is constantly willing to court if not incite the threat of violence as a way of advancing his goals.

I think the impact of this politically, is likely to be cross cutting for Trump and a Republican primary. There are a lot of his allies who say that there will be an immediate rallying around him by conservative voters and, you know, that they will be responsive to his argument that he is being targeted by the deep state or by Marxist prosecutors. And then in fact, he's being targeted. They are targeting him as a way to silence them, the voters.

And there's a piece of the Republican electorate that will respond to that. But that is not the whole story at all, Rosemary. And as you see, both is kind of the leadership level of the Republican Party with strategist, elected officials and donors. But even also among the voters. There is a significant segment. A slice of the party that is deeply concerned that Trump simply cannot win again in 2024.

And as Chris Christie said the other day, the former governor of New Jersey, former presidential candidate, an indictment doesn't really help anybody and for the -- for the portion of the party that is dubious that he can win. This is going to be I think, another reconfirming or reaffirming point of evidence to harden and deepen those concerns.

CHURCH: And Ron, even before any charges are announced, House Republicans are requesting Manhattan District Attorney Alvin Bragg's test -- testify in an effort to discredit the Trump investigation and defend the former president. What's really going on here, do you think?

BROWNSTEIN: Yes. Again, this is not normal. You know, so many things in the Trump era are such a dramatic and, in many ways, dangerous departure from the American political tradition, that it's easy to lose sight of them. But what is happening with House Republicans in the last 96 hours or so in which they have moved from sort of rhetorically threatening to kind of procedurally moving against an elected D.A. pursuing an illegal investigation and in essence, trying to intimidate him by these demands for documents, some discussion of trying to cut off funding for his office, for federal grants that they received.

[02:15:00]

It is a signal of just how far Republicans remain even after all that is occurred, even after January 6, even after the losses in November 22. How will willing they are, how far they will go to try to protect Trump from consequences for his actions. I mean, there was another route here. I mean, it was not that long ago in American politics, that you would have heard voices saying, look, no person in America is above the law.

We've got to let the legal process, buy out. Let the chips fall where they may. That's not at all what you are hearing, you're hearing preemptive charges, in essence, trying to delegitimize the investigation. And again, before any of the evidence is heard before, as Joey said, we even have seen the indictment. You have Republicans threatening the prosecutor. That is a dangerous and ominous turn in American civic life.

CHURCH: And Trump's defense team had apparently been pushing Florida's governor Ron DeSantis to weigh in on this investigation. And that's exactly what he did Monday, but perhaps not in the way they would have liked. Let's just take a listen to that. BROWNSTEIN: Yes.

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GOV. RON DESANTIS (R-FL): I don't know what goes into paying hush money to a porn star to secure silence over some type of alleged affair. I just -- I can't speak to that. But what I can speak to is that if you have a prosecutor who is ignoring crimes happening every single day in his jurisdiction, and he chooses to go back many, many years ago to try to use something about porn star hush money payments, you know, that's an example of pursuing a political agenda and weaponizing the office.

(END VIDEO CLIP)

CHURCH: And Trump responded to being mocked by DeSantis lashing out in this Truth Social post. I just want to read it out. He said Ron DeSanctimonious will probably find out about false accusations and fake stories sometime in the future, as he gets older, wiser and better known when he's unfairly and illegally attacked by a woman, even classmates that are under age or possibly a man.

What does Trump's response reveal to you about how he plans to attack DeSantis if he enters the 2024 presidential race?

BROWNSTEIN: Both of those statements, Rosemary, in about a minute's time, encapsulate each side's campaign. You know, I've said to you before that DeSantis, the core of his campaign that in development is that he plans on offering Republican voters, Trumpism without Trump that he will fight all of the cultural wars that Trump does but not trail all the personal baggage. And you see that in that statement where he goes after, you know what Republicans would call woke or liberal prosecutors, but also reminds people of the personal baggage that Trump brings from paying hush money to a porn star as kind of a symbol of all the scandals trailing him.

And then on the other side, you see Donald Trump just scorched earth attack on anyone who stands in his way as we saw in 2016. And any Republican who was operating under any illusion that Trump will not do everything he can to tear down DeSantis through any means necessary. And, you know, referring to allegations about his behavior when he when -- he was a teacher, it's just the beginning of what will be just, you know, an extraordinary turn in the blast furnace for Ron DeSantis beyond anything that he has ever faced.

I mean, running like -- running against Donald Trump is a little like the famous statement attributed to Mike Tyson. The boxer who wants reportedly said, everyone has a plan until they get punched in the face. And that's what running against Donald Trump is like, and we will see how well DeSantis can handle it. As this moves forward.

CHURCH: Yes, He may decide not to throw his hat in the ring. We'll see what happens. Ron Brownstein, always a pleasure joining us live from Los Angeles. Many thanks.

BROWNSTEIN: Thanks for having me. CHURCH: And still to come. The meeting in Moscow. The leaders of Russia and China tout their close ties as the West keeps a close eye on any developments. The latest on the talks just ahead.

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[02:22:48]

CHURCH: Russian President Vladimir Putin is now gearing up for a second day of talks with Chinese leader Xi Jinping. The two leaders exchanged a handshake and smiles as they met at the Kremlin on Monday. They later touted their close ties meeting for more than four hours with President Xi calling Putin his dear friend. This is Xi's first visit to Moscow since Russia's invasion of Ukraine.

Well, the highest stakes. Closely watched meeting has drawn skepticism from Ukraine and its Western allies. Despite China's efforts to frame itself as a peacemaker in the ongoing war in Ukraine. CNN's Selina Wang is following developments from Beijing.

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SELINA WANG, CNN CORRESPONDENT (voice over): The meeting of two friends both set up to be leaders for life showing off their vision of a post American World Order. The Pomp and Circumstance, a credibility boost for Russian leader Vladimir Putin displaying that he's caught a powerful friend in Chinese leader Xi Jinping, even as the International Criminal Court has a warrant for his arrest for committing more crimes and allegedly shipping Ukrainian children to Russia.

And even as the West isolates him amid stalled invasion of Ukraine. Both Xi and Putin writing glowing op eds about our country's relations. Xi calling the relationship and eternal friendship, Putin saying the two are standing shoulder to shoulder against America's increasingly aggressive efforts to deter Russia and China.

Xi Jinping is trying to walk a delicate line so far stopping short of providing lethal aid to Russia, though the U.S. says he may be considering it, while also refusing to condemn the invasion.

Meanwhile, Beijing is also taking advantage of Russia's isolation. trade between the two nations jumped to $190 billion last year, an increase of 30 percent from 2021 undercutting the impact of U.S.-led sanctions as Chinese companies snap up cheap energy from Russia giving the Kremlin key funds to finance the invasion. But Beijing wants the world to focus less on their friendship and more on Xi's role as a global statesman who can broker peace deals.

[02:25:05]

Like the historic deal he helped forged to restore relations between Saudi Arabia and Iran. I've been talking to people in this Hutong, this old Beijing residential alley to get a sense of what Chinese people think about Xi Jinping's visit. This man tells me Xi's visit is good because it can further improve China-Russia relations. He says he likes Putin a lot because he's a cool, tough guy. On the Ukraine war, he says, he just hopes everyone can have a peaceful relationship.

This woman tells me she hopes Russia wins the war but peace is best.

Another woman says the war and loss of life is heartbreaking and painful to watch. She says it's wrong for America to send weapons to Ukraine. And she believes in Xi Jinping vision of world peace.

When I asked her what she thinks of Putin, she answers that he's righteous, decisive, swift and tough. But when I follow up and ask if she's heard of the ICC issuing an arrest warrant for Putin, she responds, I didn't know, he started the war. After all, he should sit down with Zelenskyy and talk.

This shoe repairman says, why are they fighting? It doesn't do anybody good. But we don't know who started the war, he adds. It's the Ukrainians, right? Xi doesn't need to convince the audience in China where media is heavily censored of the merits of his tight bond with Putin. But the rest of the world is watching to see what comes of Beijing's claims of neutrality.

Selina Wang, CNN, Beijing.

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CHURCH: Taiwan's president will transit the U.S. twice during an upcoming overseas trip. Tsai Ing-wen is expected to leave Taiwan for New York at the end of the month before going to Guatemala and Belize. Then she will pass through Los Angeles on her way back home. Earlier this month. U.S. House Speaker Kevin McCarthy said he would meet with President Tsai in the U.S. but did not specify a date.

And still to come. Shares of U.S. Bank first republic tumble despite a major rescue package less than a week ago. A live report on the global banking crisis just ahead.

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[02:30:00]

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ROSEMARY CHURCH, CNN INTERNATIONAL ANCHOR: Welcome back everyone. The global banking sector isn't out of the woods just yet. U.S. Bank first republic is fighting for its life despite a $30.00 billion lifeline from 11 of the world's largest banks and a $70.00 billion loan from J.P. Morgan. Its shares sank more than 45 percent to another record low on Monday and S&P Global downgraded it for a second time within a week. The Wall Street Journal is reporting rival banks led by J.P. Morgan are trying to work on yet another rescue plan for First Republic. And CNN's Clare Sebastian joins us live now from London. Good morning to you Clare. So, how secure is the U.S. banking system? Can we expect more turmoil ahead? CLARE SEBASTIAN CNN CORRESPONDENT: You know, I think it's pretty secure overall Rosemary, certainly more secure unquestionably than 2008. But perhaps more time all ahead is possible. Certainly, regional bank shares are still under intense scrutiny first republic was down almost halved in value on Monday down some 47 percent as you showed, but it wasn't the only regional bank to suffer losses. Confidence is definitely shaken, people are scrutinizing these banks in terms of their interest rate exposure. Look at those regional banks there you can see some up, some down, are still mixed.

This is despite the U.S. official -- by the way, telling CNN that they believe that the deposit outflows that we saw from those regional banks last week have stabilized. And in some cases, recovered and repeated reverse people are adding deposits to these banks, and that the share prices are in no way correlated to the situation with deposits. But look, as I said, the banking system is more secure than 2008. The regulations have made that very certain, certainly when it comes to the biggest banks, but this has been a crisis of confidence. And it has infected the entire sector.

Take a look at the March losses, for some of the U.S. biggest banks. You can see are all pretty much down double digits, even J.P. Morgan, perhaps the most secure of all down 11.3 percent down to Wells Fargo which has lost almost 20 percent of its value over the course of March. This is about confidence but it's also about a bit of a repricing of this sector. This has really brought home to investors that banks are now having to jack up the returns that they're offering to savers, and depositors that eats into profitability.

This crisis of confidence could also increase the amount of the banks having to pay to borrow and things like that. So, this is sort of caused a bit of a wobble in the entire sector. And now, of course, Rosemary, all eyes will be on the Federal Reserve meeting on Wednesday. Whether or not the turmoil in the banking sector will cause them to pause when it comes to fighting inflation.

CHURCH: Yes, we're waiting with bated breath on that one for sure. Clare Sebastian, joining us live from London, many thanks. And still to come, California's flood threat rises as a storm system hits the state. Why rain and snow are coming down with a vengeance across the U.S. West Coast. We'll take a look.

[02:35:00]

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CHURCH: Welcome back everyone. More than 15 million people in California are under an increased flood threat. According to the U.S. Weather Prediction Center. It's all due to an atmospheric river event set to douse the southern part of the stage with up to four inches of water in some areas. CNN Meteorologist, Derek Van Dam, breaks down what West Coast residents can expect.

DEREK VAN DAM, CNN METEOROLOGIST: The threat of flash flooding is increasing across Southern California and the Weather Prediction Center picking up on that threat as well. They have increased their excessive rainfall outlook to include Los Angeles and San Diego into that level three of four and moderate risk of flash flooding. So, that encompasses about 15 million Americans, it's from the coast through the adjacent interior with a slight risk extending northward towards the Bay region. Also noted across central and southern Arizona, a slight risk of flash flooding or excessive rain exists for the day on Tuesday as well.

This as yet another atmospheric river event lines up and takes aim, at the southern portions of California with the greatest threat of flash flooding, through Tuesday morning into the afternoon and evening hours. That's when we'll start to see some of that heaviest rainfall impact to L.A., San Diego just south of San Francisco. Unfortunately, coinciding with some of the rush hour traffic on Tuesday morning. And then a secondary low will meander off the west coast bringing more waves of moisture through the day on Wednesday.

Now, we have the National Weather Service hoisting flood watches, this includes Los Angeles, San Diego, portions of Nevada, southern and central sections of Arizona. And millions of Americans impacted by winter weather alerts as well. Where up to two to three feet of snow could fall, especially into those higher elevations just outside of Los Angeles into the coastal ranges there anywhere from 7,000 feet upwards. That's where we're expecting to heaviest amounts of snow.

[02:40:14]

In terms of rainfall, generally one to three inches of rain anticipated, but with the saturated soils that are in place, the potential there exists for runoff. And that of course could lead to some ponding on the roadways, hence, the localized flash flooding risk. Now often with atmospheric river events, we get strong gusty winds, with that could gust over 75 miles per hour across southern California, especially in those higher elevations. Back to you.

CHURCH: Thanks for that report. And I'm Rosemary Church for our international viewers, "WORLD SPORT" is coming up next. And for those of you here in North America, I'll be back with more CNN NEWSROOM in just a moment. Do stick around.

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