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New Day

White Nationalists Celebrate Bannon Appointment; Critics See Bannon As Voice Of Racist Far-Right Giants Stay hot, Hold Off Bengals; Clippers Win 7th Straight, Move To 10-1; Source: Trump Considering Top Secret Clearance For His Children; Trump Faces Potential Conflicts of Interest; Source: Trump Transition A "Knife Fight"; Trump Operatives Battling Over Cabinet Posts

Aired November 15, 2016 - 06:30   ET

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

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[06:33:48] CHRIS CUOMO, "NEW DAY" ANCHOR: White nationalist leaders and members of the so-called Alt-Right are celebrating the appointment of Breitbart Executive, Steve Bannon as Donald Trump's chief strategist. There is of course a lot of opposition for exactly that reason.

Let's bring in someone who knows Steve Bannon and who formally represented Breitbart News before cutting ties with the organization earlier this year, President and CEO of Endeavor Strategies Kurt Bardella joins us now. It's good to have you back on the show.

KURT BARDELLA, ENDEAVOR STRATEGIES PRESIDENT AND CEO: Hey, thanks for having me on.

CUOMO: So why should we be so concerned? Why isn't this just, you know, they're bringing in somebody who's not from the mainstream, he's not in the club and then all the media and the insiders get upset that's someone is in there that, you know, isn't someone they really know. Is that what this is about? Or do you believe Bannon does represents something that needs to be taken very seriously?

BARDELLA: Well, I think this is really unprecedented, uncharted territory. This isn't what you normally see in administrations and turnovers where they bring in someone. Maybe have a little bit different experience than what we see in Washington and that's normal. This is something that's completely outside the normal situation. And I think that's why it has so many people concerned. It is an unpredictable variable and it's an unpredictable variable that has the ear of the president, who's the virtual co-White House Chief of Staff and nobody knows what's going to happen.

[06:35:02] CUOMO: So you worked there as an adviser. You know, you're a guy. You're a strategist of different ways to get messaging across. What did you detect in your time working with them, for Endeavor, where you were like, this is a concern, I don't want to be around this? BARDELLA: Well, the there, you know, the way that Breitbart operates and the way that Steve operates is they're provocateurs. They are about instigating and disrupting and creating conflict. And I think that when you're in the role of being against someone who helps the president run the country, that's not the mentality that you should have. It should be much more reserved and diplomatic and mature. And that's -- if you look at the pages of Breitbart, I think that the last word that comes to mind is mature.

CUOMO: Is it just about tactics or is it about intention and what he believes? Like what does Steve Bannon believe that people should be worried about?

BARDELLA: Well, I think it's the overall world view that, you know, the United States should be more of an isolationist country. That we should have less partners. We should be doing less in the global community that we should withdraw and go backwards. And I think what had so many Americans concerned about this election particularly is the idea that the message of we need to go back to the way it was and undo what many would call progress in our country, that has a lot of people very scared and concerned about what that means for now.

CUOMO: Do you believe this ideology includes feeling that multiculturalism, diversity, respecting minority rights is a problem?

BARDELLA: I think the last thing you think of when you think about Donald Trump and Steve Bannon (inaudible) actually is the word respect. You know, these are people who very freely and openly attack anybody who might disagree with them. Who attack the free press, who attack standing pillars of our institution, of our Democracy and they want us somehow to fundamentally change that. And I think that has a lot of people, rightfully very concerned.

CUOMO: So this guy Jared Taylor, who runs the site American renaissance. It's, you know, white nationalist site, you know, which is different in white supremacist. People keep confusing theirs. There isn't a KKK we're talking about. This people have, you know, eager legitimate or illegitimate grievances is very often with multiculturalism and the diversity and the crowning of America so to speak.

There has been some waffling on some candidate Trump's signature issues, build the wall, deport illegals, end birth-right citizenship. Take a hard look at the Muslim immigrants, et cetera. I suspect one of "Steve Bannon's important function will be as an anti-waffler.

Now, some can say, good. You know, he promised it, he should do it. And that's a tight spot for Trump, right, because he did talk this talk. And what do you see in this? Why should that be a concern for people?

BARDELLA: Well, I think when Trump set himself up to be held to a standard he set during the campaign. It's going to be his words and his rhetoric that he's measured by, by his own supporters, by the most passionate Alt-Right support he has that's what's going to hold him accountable. I think Steve is there to ensure that he doesn't waffle on these things.

Now, there's a difference in saying something in the beginning, delaying a little bit, and trying to garner some good favor with everybody else before pursuing the agenda he talked about for so long. Because I think he's going to ultimately try to do those things. I think right now this is all just posturing.

CUOMO: Do you believe that Steve Bannon would be a force to oppose the respecting of rights for minorities like the LGBTQ community?

BARDELLA: Absolutely. I mean, again I think, look at how Breitbart -- on the pages of Breitbart they talk about these communities and minorities and relations and women and the role of women in this country. And that's kind of a play book at least for the type of rhetoric that they're comfortable with. And things, you know, actions always start with words and turn to something much more serious, much more substantive. And all we have to measure are both the incoming president and Steve by are the words from the past and the stories we read on the site that they described as go-to place for news.

CUOMO: Last question, may be the most relevant one. In your experience with this man, Steve Bannon, is it what he really believes, or is this just what has been working for him with this media product, the Breitbart en-cording that, you know, that passion about small base of people who believe these things. Do you think its hype and business or do you think this who he is?

BARDELLA: You know, I think it's a little bit of both. I think, one of the real observations is that it's hard to discern where Breitbart ends and where Steve Bannon the person begins. And, you know, we've -- I've heard stories of people coming out saying, well, he's treated me very well, I'm Jewish and he's respected me.

CUOMO: Navy officer, worked at Goldman Sachs. You know, he's done a lot of legitimate things.

BARDELLA: He's done a lot of things. And so, again I think that how you treat one -- and to deal with a person who might be from a specific subgroup. That doesn't necessarily speak to your overall world view either. And all we have to judge by again are the things that we've seen promulgated by this news site. And that that's what he's being judged by. And that's probably appropriate given the role he's played there at the top of that situation.

CUOMO: And it is right to put news in quotes when talking about that site. Kurt Bardella, thank you very much. Appreciate it.

BARDELLA: Thanks.

CUOMO: All right, so what do you think about this? Are you concerned? You can tweet us @newday, post your comment on facebook.com/newday.

[06:40:04] Alisyn?

ALIYSN CAMEROTA, "NEW DAY" ACNHOR: OK, Chris. A top Democrat calling for a review of Donald Trump's finances for conflicts of interest before the President-elect moves into the White House. We'll take a closer look at those when "New Day" continues.

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CAMEROTA: The New York Giants winning a nail biter on Monday night over the Bengals for their fourth win in a row. Coy Wire has more in this morning's bleacher report. Hi, Coy.

COY WIRE, CNN SPORTS ANCHOR: Hi, Alisyn. It has been three years since the Giants have won four games in a row. They haven't looked this good since they won that Super Bowl back in 2012.

Big part of the reason, Odell Beckham Jr. Let's watch this move right here. It's just so sweet. Look at the double move. Defender frozen in time like he's doing the mannequin challenge. Odell Beckham bust out an old-school thriller. This was turning all over online. Nice pass from Eli Manning there. And this was the moment though, a gamble on fourth down early in the fourth quarter. Rookie Sterling Shepherd, the go-ahead touchdown. The Giants would hang on for the 21 to 20 win.

L.A. Clippers downing the Brooklyn Nets last night.

[06:45:04] No surprise. The Clippers have now won seven straight. They've been putting a beat down on almost everybody they played this year, including themselves now. Watch Chris Paul loses the ball out of bounds. And DeAndre Jordan goes in for the consoling hug, but they butt heads. Yeah, that's going to leave a mark. That's their only headache on the night. Clippers cruise to a 127 to 95 victory.

If you're tired of the mannequin challenge, too bad because the Gonzaga student section pulled one off before their game against San Diego State last night. I had to show you this one. Reporter got involved. The cheer team got involved. All the students there just hanging, frozen in time.

And if you like that one, here's one you haven't seen before, under water mannequin challenge. The University of Pacific Women's Water Polo team taking the mannequin challenge to entirely new depths.

I don't know, Cuomo, that's a pretty good one. What do you think about that one buddy?

CUOMO: Somebody who gets called a mannequin on a regular basis. I feel like I have a little bit of insight. What would be your hold face?

WIRE: My hold face? Something like this.

CUOMO: Oh, yeah. That's what I'm talking.

WIRE: Yeah.

CUOMO: You can make yourself look ugly. You're too pretty. Keep trying. Keep trying. WIRE: I'm waiting for one from you guys. I want a commercial break mannequin challenge at some point ...

CAMEROTA: OK.

WIRE: ... at "New Day". You got to put it out on twitter for us.

CAMEROTA: Done.

CUOMO: We pretty much sit with fixed expressions on our face.

CAMEROTA: This is our mannequin challenge.

CUOMO: For hours at a time.

CAMEROTA: That's right. All right thanks, Coy.

So Donald Trump's children will be running his corporation while he is in the White House. But now there are reports of the President-elect is considering giving his kids top-secret security clearance. Why do they need that? We discuss that next.

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CAMEROTA: New questions about how President-elect Donald Trump will handle the potential conflicts of interest between his business, his family, and the presidency. This amid reports that Trump is considering asking for top-secret security clearance for his kids, Donald Jr., Eric, Ivanka and her husband Jared Kushner.

So here to discuss all this, we have Bloomberg View Executive Editor and Author of "TrumpNation: The Art of Being the Donald" Timothy O'Brien, and Former Chief White House Ethics Lawyer and Professor of Corporate Law at the University of Minnesota, Richard Painter. Great to have both of you.

Timothy, let me start with you. If his kids are going to run his company, the Trump organization, why do they need top security clearance?

TIMOTHY O'BRIEN, BLOOMBERG VIEW EXECUTIVE EDITOR: Well I don't think they do. I mean that's the largest, larger question looming over all of this is that, he's not establishing any clear boundaries on what should divide his business interests from his political interests, from policy in the White House. And we've had guidelines in the past that presidents have observed the bits by tradition. The president has a lot of latitude. There are no conflict of interest laws that apply to the president. They applied other members of the executive branch but the president is free of those laws.

CAMEROTA: Is that right?

CUOMO: So you may have an issue about secure communications. You might be able to make a pre-constructive argument ...

O'BRIEN: Yes. CUOMO: ... for why he's going to be such in close contact. These communications have to be safe. But then you get into this broader expanse of the gray zone that you're talking about.

Mr. Painter, let me bring you in on this. Richard, what is the -- is there any bright line about what a president has to do, or is this all about discretion?

RICHARD PAINTER, PROFESOR OF CORPORATE LAW AT UNIVERSITY OF MINNESOTA: Well most of it is about discretion. There are some rules all the president does have to follow. For example, the volume of close of the constitution prohibits the president from receiving any payments that could be characterized as gifts or in volumes from foreign governments or companies controlled by foreign governments. So there's going to have to be some reworking of relationships with for example, the Bank of China and other entities if the president chooses to retain ownership of these businesses.

CAMEROTA: So Professor ...

PAINTER: And then of course of the anti-bribery laws.

CAMEROTA: Professor one more thing on the kids. Aren't there nepotism laws?

PAINTER: Yes, there are nepotism laws that will prevent the president from appointing his children or in-laws to positions in the government. We've had those ever since the late 1960s when Congress was upset about ...

CUOMO: Bobby Kennedy having appointed his brother.

CAMEROTA: Right, so but you're saying that if they're not official positions, then they can come and go and be advisers?

PAINTER: Well, they can. We went through some of this with Hillary Clinton back in the early '90s working on the health care policy. And there's a lot of criticism with that. And it's just very important for President-elect Trump to realize that he could very well be overreaching here if he involves his family members as an appointed advisers circumvents the anti-nepotism laws.

CUOMO: And now here comes back an issue that was big during the campaign and might even loom larger now. One of the only ways that you can have other than the financial disclosure documents that they put out every year that you know what the president's up to, what's getting into his pocket is his taxes. And every year the president's put out their taxes. And we all look at them. Jason Miller represents Trump, came on yesterday and none answered that question.

O'BRIEN: Right.

CUOMO: He said, you know where he is on the question about his taxes. He's been very clear about the question about his taxes, which I took as, he ain't going to give you his taxes. Do you think he can get away with that as president? O'BRIEN: I think he probably thinks he can get away with anything he wants as president around some of the traditional rules or guidelines the presidents have followed. Clearly he doesn't care about his taxes, Chris. He's blown it off during the whole election.

He said that he would create a blind trust with his children overseeing his businesses but in fact the office of government ethics doesn't allow you to have your own family members over see a blind trust. So that's a nonstarter.

He said that he would keep distant decision making around his business and White House policy separate, when in fact he's now put his children on the transition team. They're going to help oversee the appointment of 4,000 people for the federal government. He wants to give them security clearance on documents. They absolutely don't need that, but he wants it anyway. Every indication he's given is that he has no desire really to follow any divisions between his personal interests and public policy.

[06:55:03] CAMEROTA: You know Timothy one of the other issues that we heard so often during this campaign was, the Clinton's, the rules don't apply.

O'BRIEN: Right.

CAMEROTA: They think the rules don't apply to them. That's how they've operated. That why she set up a private server. (CROSSTALK)

O'BRIEN: I remember -- and remember during his first administration, that's what enraged people about Hillary overseeing the health care policy.

CAMEROTA: Absolutely. And so Professor, I mean this is -- can you file this under rules don't apply to the Trump family?

PAINTER: Well, the problem is the entire campaign has involved boundaries being -- boundaries of acceptable behavior being crossed over and over again. And the President-elect has been rewarded for that at every stage of the process.

But now the campaign is over. He has a job to do. And we have to have a White House that works and that serves the American people.

We can't have torture memo lawyers hanging around transition team headquarters. The white supremacists need to be sent back to their bunkers. And we need a separation between the Trump business interests and the White House, a clear separation. He is there to serve the American people not his family.

CAMEROTA: Congressman -- go ahead.

CUOMO: So Cummings is coming out with this letter. We both have the same question. It is to -- he is the ranking member of the Committee on Oversight Government and Reform. He sent a letter to the Chairman Jason Chaffetz. It's requesting that the Oversight Committee immediately begin conducting a review of Trump's financial arrangements to ensure that he doesn't have any actual perceived conflicts of interest that his advisers comply with all legal and regulatory requirements, et cetera.

The irony here, of course, Professor, as you know, is that this is actually a legitimate exercise of oversight by Congress. Usually you could argue they're really over reaching and looking at Quasi-criminal things when they really have no jurisdiction over that at all.

What do you make of the Cummings request? Do you think it gets anywhere politically and practically is it a real concern?

PAINTER: Well, it is a concern that Congress should investigate, whether the conflicts of interest in the executive branch whether it as conflict of interest concerning the Trump empire or Breitbart News or any other private entity that would seek to influence this administration. That is a legitimate area of inquiry for Congress. That is the function of that committee.

Now, I've criticized that committee under both Democrats and Republicans for overreach ...

CUOMO: Right.

PAINTER: ... with respect to highly politicized investigations but that is the reality. And if some day the Democrats get control of Congress and control that committee, they're going to roll back investigations to right now this transition team, period, with respect to conflicts of interest.

So it's very important for the President-elect to focus on getting this job done, ridding himself and his White House of conflicts of interest, and dealing with the other problems that are going to come back and be very damaging for him later in his administration.

CAMEROTA: Professor, Tim, thank you both.

O'BRIEN: Thank you.

CAMEROTA: Thank you very much.

We're following a lot of news this morning, so let's get right to it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think there are going to be a lot of announcements of a lot of people.

UNIDENTIFIED FEMALE: The battle for appointments being called a "Knife Fight".

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It is one of those norms vital to a functioning Democracy.

UNIDENTIFIED MALE: A smooth transition is so important.

UNIDENTIFIED MALE: Bannon, he's a racist. He advances anti-Semitic views.

UNIDENTIFIED FEMALE: Of course I'm offended, frankly. People should look at the full resume.

OBAMA: Certain elements of his temperament will not serve him well.

DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: NATO is obsolete. NATO has to change.

OBAMA: One of the messages I will be able to deliver is his commitment to NATO. This office has a way of waking you up.

(END VIDEO CLIP)

CUOMO: Good morning welcome to your "New Day". Vice President-elect Mike Pence is on his way to Trump Tower in Manhattan this morning. They're trying to get on the same page about these waves of appointments they need to make. And who will be surrounding President-elect Trump in Washington.

Sources tell us that there's a lot of tension between the traditional and the ultra conservative over what choices should be made because what face what they want to out to the world.

CAMEROTA: President Obama has just arrived in Greece. This is one day after his first news conference since the election. The President is trying to reassure allies that Donald Trump is truly committed to NATO. CNN has every angle on the Trump transition covered for you, starting with Sunlen Serfaty. Good morning Sunlen.

SUNLEN SERFATY, CNN NATIONAL CORRESPONDENT: Good morning, Alisyn. Trump transition adviser describing the meeting today between President-elect Trump and Mike Pence as serious, given that they are nearing final decisions over some of these top cabinet positions. But inside the broader transition team, there is already an internal struggle over these big decisions between the more traditional Republicans on his team like Reince Preibus and Steve Bannon, the two power centers in Trump's world.

(BEGIN VIDEO CLIP)

SERFATY: The battle for appointments to President-elect Donald Trump's Cabinet being called a "Knife-Fight" and "Buffoonery". According to sources within his ...