REWARD-00
It involves the acquisition of Time Warner and includes a lot of content
here. HBO, TBS, TNT, CNN, also the Warner TV and film studios; Facebook
workers are pushing to remove some of Donald Trump's post for violating the
site's rules and hate speech; Department of Homeland Security investigating
a massive web attack that affected web sites that you know, Twitter,
Amazon, Netflix, and more; President Obama's favorite general he pleaded
guilty to the felony charge of lying to the FBI about his handling of
classified information; ISIS fighters attacking the strategically the oil
city of Kirkuk, Iraq. Starting a massive gun battle in the heart in the
heart of the vital Kurdish stronghold - Part 1>
Woolsey, Lenore Elle Hawkins, Michael Lee, Steve Moore>
Security; Internet; Lawsuits; Terrorism; ISIS; Mergers and Acquisitions;
Lawsuits; E-mails; Clinton Foundation; Taxes; Debt; Economy>
ELIZABETH MACDONALD, RISK & REWARD SHOW HOST: WikiLeaks is back with the 14th data drop of hacked e-mails from inside Hillary Clinton's campaign. The details continue to rock that campaign. We do have the details.
Welcome to Risk and Reward. I'm Elizabeth MacDonald, in for Deirdre Bolton.
Also on our radar screen, AT&T in advance talk with a mega major deal possibly in the work. It involves the acquisition of Time Warner and includes a lot of content here. HBO, TBS, TNT, CNN, also the Warner TV and film studios.
But first, let's get to the latest WikiLeaks development. My colleague Peter Barnes in Washington, D.C. He's got the very latest. Peter?
PETER BARNES, FOX NEWS SENIOR WASHINGTON CORRESPONDENT: Well, hey, Liz. I got some dish for you on Al Gore and Hillary Clinton who are all friendly when they appeared together the campaign rally in Florida last week. But they have had a widely reported rocky relationship.
He got in around to endorsing her in July of this year but new WikiLeaks e- mails reportedly from John Podesta between her and her top aides, Huma Abedin and Cheryl Mills in November 15, 2015 provide some of the back story on the Al Gore/Hillary Clinton relationship.
After he told People magazine last November that it was too early to endorse her. In the e-mail, Mills brings up the fact that Hillary did not endorse Gore for president in the 2000 race. Abedin says, well, "that was 16 years ago. Hard to put an e-mail -- put on an e-mail but there is no love lost in this relationship. Remember that he refused to endorse in 2008."
Cheryl Mills, "I know that's why -- I know. That's why I thought this time it would be different." Abedin, "No, it's bad." Also yesterday, you remember we reported on that big $12 million donation from the king of Morocco to the Clinton Foundation if Hillary Clinton would agree to do an event in the country in 2015 after she had departed the State Department,, just for the record.
The foundation has promised to stop taking corporate or foreign donations if she becomes a president. But a new WikiLeaks e-mail from last October shows the head of the foundation's Clinton global initiative trying to figure out how to keep the money flowing.
Bob Harrison e-mailed campaign chair John Podesta about the future of the initiative because of questions from employees, members and sponsors when Hillary Clinton decided to go for the White House. Quote, "It is imperative that we formulate an answer to the question whether CGI, the Clinton global initiative, can and will exist beyond 2016 if Secretary Clinton becomes the next president."
He goes on to say that if yes he needs to understand what he will need to change. He says Bill Clinton has to stay involved at least as the initiative convener. And that quote, "The economic viability of CGI depends on its ability to attract members and sponsors to support the enterprise."
He asked what kind of restrictions could be placed on donors and then he wrote, "If corporate or individual or foreign sponsorship is precluded is there an acceptable membership alternative for these organizations and at what price point does that fee becomes unacceptable."
The Clinton Foundation refers to Bill Clinton's announcement from August on the organizations plans to limit contributions if his wife wins the White House. Liz, that's the latest.
(CROSSTALK)
MACDONALD: Peter Barnes, Bob Harrison is the CEO of the Clinton global initiative. He is the former Goldman Sachs investment bank, right?
BARNES: Correct. That's correct. He was a Goldman Sachs guy, yes.
MACDONALD: He could have been helping with the speeches for Hillary Clinton or Bill Clinton. And by the way, getting back to the Al Gore feud, I think it stands from the Monica Lewinsky scandal. Al Gore was not happy with that.
BARNES: Correct.
MACDONALD: And then Bill Clinton did not like how Al Gore ran his campaign in 2000. He thought it was too populous, right, Peter?
BARNES: Yes. And Al Gore distanced himself from the Clintons after the Lewinsky scandal.
MACDONALD: Yes, that's right.
BARNES: And that was kind of the source of that breach for a long time and apparently still has been going on as recently as, you know, last week.
(CROSSTALK)
MACDONALD: H and blog feud. Thank you.
BARNES: You bet.
MACDONALD: Have a great weekend, Peter. Thank you so much.
BARNES: You, too, Liz.
MACDONALD: Now reports say Facebook workers are pushing to remove some of Donald Trump's post for violating the site's rules and hate speech.
We've got Trump campaign national spokesperson, Katrina Pierson with us. Nice to see you, Katrina.
KATRINA PIERSON, DONALD TRUMP NATIONAL SPOKESPERSON: Great to be here. Thank you.
MACDONALD: So, it looks like the Facebook workers don't like what Donald Trump is saying about his crackdown and allowing Muslim individuals into this country. What do you make of that?
PIERSON: Well, I think this is pretty much in line with what we've seen in a lot of these liberally owned media sites. There was a big meeting, I'll remind everyone with Mark Zuckerberg and some of the conservative leaders who had concerns that they were censoring not just Donald Trump's position but republican positions.
And this is just another example of how Mr. Trump's message is being cycled.
MACDONALD: You know, we also have Vice President Biden hitting Donald Trump hard on his comments about basically -- Donald Trump's comments about women and also Donald Trump's accusers, female accusers who have accused Donald Trump of sexual impropriety. Let's take a look at what Vice President Biden said.
JOE BIDEN, U.S. VICE PRESIDENT: To talk to you about Trump's behavior, in his personal behavior but when he said he did and does is a textbook definition of sexual assault.
He said because I'm famous, because I'm a star, because I'm a billionaire I can do things other people can't. What a disgusting assertion for anyone to make.
(APPLAUSE)
The press always ask me, don't I wish I were debating him. No, I wish we're in high school I could take him behind the gym. That's what I wish.
(CROWD CHEERING)
MACDONALD: What are your thoughts here, Katrina?
PIERSON: Well, I noticed he left out Leslie Millie, one of the latest Bill Clinton accusers. But this is what they have to do. Mrs. Clinton still is in 50 percent in the polls. And they keeping about, they, meaning the left, the democrats, as well as the media, keep saying we need to talk about policy but yet, they don't talk about policy, and Mr. Trump is.
This is another distraction. It's a diversion. It's another way to run down the clock hoping that it will -- it will favor Mrs. Clinton...
MACDONALD: Yes.
PIERSON: ... on top of all the WikiLeaks that have come out that really have exposed the vulnerabilities, not just in Clinton's campaign but the left as a whole.
MACDONALD: Yes. You know, I'm watching the reaction in the internet, Katrina. And the reaction is how about, you know, the Obama administration and Vice President Biden taken the U.S. economy out to the woodshed. You know, basically giving, you know, pummeling it down into the sand.
What do you think of reports that Clinton -- the Clinton campaign is preparing for the possibility that Trump will not concede should Hillary win.
PIERSON: Well, this is something else that they want to talk about because they can't talk about the latest revelations in WikiLeaks that, you know, the president knew Hillary Clinton was using an illegal server, that the administration knew that there was collisions throughout the FBI, throughout the White House and the Clinton campaign including the media.
There is a ton of corruption going on here. And this is a kind of thing that use to make a journalist's career by serving the public and keeping politicians honest. And we have seen none of that today particularly with regard to the Clintons.
So, of course they're going to talk about false allegations. They are going to talk about elections that haven't even occurred get. Because they cannot talk about the things that are really important to Americans.
And that is the fact that Hillary Clinton exposed national security. She lied to Congress. She continues to lie to the American public. And through of the revelation of WikiLeaks some of the democrat operatives have been lying to the public even about the economy.
MACDONALD: And usually when you have a candidate not conceding it's because there is concerns about the vote count. And if it's in within I think 1 percent usually states how that many of them 1 percent of the total votes that's in question then you do a recount.
I mean, Katrina, Donald Trump campaign assembling anything along the lines of evidence that it could be problems right now, going on right now because early voting is underway with any of the swing states in the voting there.
PIERSON: Well, we are definitely paying attention, especially after the Project Veritas video that have come out. I understand that James O'Keefe is actually suing to find out what is happening with these ballots that are coming in by mail. And are they being torn up and thrown away. These are things that remains to be seen.
MACDONALD: OK.
PIERSON: Mr. Trump is simply saying he's not going to concede election that hasn't happened yet.
MACDONALD: OK. Thank you very much, Katrina. Thanks for your time. We really appreciate it.
PIERSON: Great to be here.
MACDONALD: Republicans are not the only ones up in arms on the revelations from WikiLeaks. Now, a new report that the leaked e-mails are poisoning Hillary's relationship with those in her own party, the democrats. The democrats were also pivot against each other.
Here are some of the ways that Clinton and some of her closest advisers discuss the left and their calls is behind their backs in the e-mails. Puntanical, pompous, naive, radical, dumb calling some freaks that need to get a life.
Now it's unclear whether Hillary made those comments. Her campaign aides appear to have made those comments. Let's take it to our political power panel. Former deputy assistant to President George W. Bush, Brad Blakeman, Washington Times contributor, Eric Schiffer. Great to have you both.
ERIC SCHIFFER, WASHINGTON TIMES CONTRIBUTOR: Thanks.
BRADLEY BLAKEMAN, GEORGE W. BUSH'S FORMER SENIOR STAFF MEMBER: Thank you.
MACDONALD: Eric, after learning how Clinton and her campaign aides feel about each other and other liberals, I mean, won't this effect if she becomes president and if, won't this basically affect her agenda and any appointment she wants to make.
SCHIFFER: Maybe a little bit, Liz. I don't see it as being a big thing. I mean, look, you could argue the flip side. I mean, if we uncovered what many senators and congressmen were saying and are saying about Donald Trump it would be far worse.
So, I don't think it's going to materially affect it. And I think it's just again trying to make something out of really not much being there in the fact.
MACDONALD: It seems like pretty sharp language. Brad, would Hillary be a compromised president because of the revelations coming out about the e- mail, meaning a lot of money changing hands, you know, king of Morocco, money coming in from Qatar.
When later on and the show we're going to talk, Brad, about the 500 examples of conflict of interest that the Clinton global initiative that Bill Clinton was involved in and that's according to his top aide, Doug Band.
Go ahead, Brad.
BLAKEMAN: Look, she's going to have an awful time if she is president governing because she comes to governance with 30 years of baggage. And most importantly, contemporaneous baggage to the outgoing administration as Secretary of State.
And now we're finding revelations of possible criminal corruption and pay to play that goes beyond allegations that we were -- we knew about in the summertime.
So, I think that Hillary Clinton is going to have a very short honeymoon if it all, probably inaugural day will end it and she's going to have to face the music of continued congressional investigation should republicans keep the House and the Senate.
(CROSSTALK)
MACDONALD: Yes, that's the point.
BLAKEMAN: It's going to be contentious.
MACDONALD: That's the point, Brad. It will call -- these relationships and the Clinton initiatives, you know, the foundation. They could taint any decision she may have to make as president. That's something that we'll have to watch out for.
BLAKEMAN: Sure.
MACDONALD: Let's take -- let's get to the next issue. We've got top campaign aides for Hillary Clinton. They basically gossiped over e-mail last year as the former Vice President Al Gore saying that he was not ready to endorse her as candidate for president.
And in November 2015, Clinton aide, Cheryl Mills forward a People magazine article. This is according to Peter Barnes in D.C. who brought us the story.
Hillary Clinton campaign chair John Podesta and Huma Abedin were talking this way. Abedin said yes he warned that he was not going to endorse. And then Cheryl Mills ask, "Why? As he clearly expected her to endorse him as vice president when he ran."
And then Huma replied, "That was 16 years ago, hard to put on the e-mails but there is no love lost in this relationship."
Eris, what do you make of this exchange?
SCHIFFER: Look, I'm sure there's probably a little bit of tension. But at the end of the day, Gore certainly stepped up. He's campaigning for, he recognizes that he can actually move his agenda forward because this is going to be an administration that's pretty pro-environment.
So, again, yes, there's probably some hard feelings but I think that president -- the new potential president will likely smooth that over in the new administration.
MACDONALD: You know, Blake, we've got another leaked e-mail just this year, acting, now acting interim chair of the Democratic National Committee. We've got Donna Brazile she called out President Obama's economy by admitting, quote, "I think people are more despair about how things are. Yes, new jobs but they are low wage jobs. Housing a huge issue most people pay of what they make to rent."
However, you know what, I watch this, Brad, and almost basically almost one month before Brazile sent her e-mail to John Podesta. Look at what she tweeted out. "Under President Obama the economy has experience a record of 70 straight months of private sector job growth over 14 million jobs."
So what she's saying behind the scenes, Brad, not state of the art, not so cinematic picture perfect. Donna Brazile is honest, Brad, basically the government data showed a lot of low-wage jobs are being created, right?
BLAKEMAN: Absolutely. And Donna Brazile is speaking truth in the e-mails and yet, she goes before the camera and she says something completely different. In the e-mails she sounds like a republican strategist.
Look, the bottom line is the facts are the facts. The base of the Democratic Party has been hurt the most by administration who promised hope and change. Our inner cities one in five are on some sort of public assistance. Crime, education dropout. It's one thing after another.
And I think that the sad part about it is on election day we're going to find that the people who got hurt the most are not changing their votes. They are still going to vote democratic maybe not in the numbers that are expected.
But Donna Brazile is right. Under Obama the economy is terrible. Terrible for the people who he promised to help.
MACDONALD: OK. Yes. The top spin is on overdrive when you see what's coming out with this WikiLeaks e-mails. Thank you, Brad and Eric. We're going to see you again shortly.
And keeping an eye on the market in a major deal. Everyone's eyeing. AT&T possibly buying Time Warner.
Lori Rothman on the New York Stock Exchange with the very latest. Lori.
LORI ROTHMAN, FOX NEWS CORRESPONDENT: And this is getting goof. Talk about a soap opera, E-mac. It's great to be with you. So, the news broke early. The Wall Street Journal reporting that AT&T in advance talk to by Time Warner. Shares of Time Warner believed that's an all-time high with a gain of nearly 8 percent today.
I'll tell you Time Warner shareholders is doing a jig in the corner all day today because now late word from the Wall Street Journal that, hey, Apple says they spoke to Time Warner did from negotiations about a month or so ago and that that Apple saying it still, quote, unquote, "monitoring the situation."
So, stand by, we could have another deal. Another bid, rather in the mix here for Time Warner. Why is Time Warner is such hot property? Well, in the media cable world AT&T would be a distributor and you've got that premium content.
Don't forget Time Warner, in addition to Time Warner film and TV studios owned HBO, CNN, as well as some other networks. And so, that is putting the likelihood of some other media deals on the fast track.
Let's go ahead and check out shares of CBS and Viacom they've been talking about a re-merger of this two for a couple of weeks now. But shares were up quite a bit today, better than 2 percent for each companies. On the likelihood that CBS which has programs that tend to cater to the older demographic would merge -- remerge with Viacom which is of course, MTV, a comedy central sort of view as the more possible 18 to 25 or 35 demo.
So, that was kind of an interesting place on the back of the news of AT&T and Time Warner. We could hear news over the weekend, perhaps Monday, merger Monday. We were talking today it's like a Friday deal a day, instead of a Monday merger.
But let me talk about yet another deal here if I have a minute. Potential $47 billion deal in the tobacco industry. And this British-American possibly buying Reynolds American. So, British-American down 4 percent, but Reynolds American sort today as they acquiree of 14 percent today.
So, the offer here $47 billion from British-American and that would bring together Newport, tent, Palmer cigarettes. If you happen to be smoker, of course those brands are foreign to me, and it would become the world's biggest tobacco company.
MACDONALD: All right. Wow. Thank you, Lori Rothman.
ROTHMAN: Yes.
MACDONALD: Before the rates go up a lot of deals are going to be happening. Thank you again, Lori Rothman.
We got the Department of Homeland Security investigating a massive web attack that affected web sites that you know, Twitter, Amazon, Netflix, and more. We're going to bring you the very latest details.
Also, the man once known as President Obama's favorite general he pleaded guilty to the felony charge of lying to the FBI about his handling of classified information.
But as General Cartwright basically he is paying a big price here. Possibly going to prison. What about Hillary Clinton, what happened there. We're going to tell you all about that next.
(COMMERCIAL BREAK)
MACDONALD: Homeland Security now investigating a major cyber-attack that basically shut down popular web sites like Twitter, Amazon, Netflix, all across the East Coast today.
Web technology provider Dynamic Network Services was hit with what are called too massive denial of service attacks which can knock web sites off line and by flooding them with a ton of junk data.
Joining me now, cyber security expert, Morgan Wright. You know, investigators, Morgan -- thank you so much for coming on.
MORGAN WRIGHT, CYBERSECURITY EXPERT: You bet, Liz.
MACDONALD: They really thought the attack could've been a nation state attack but now they're saying that no, it's not a nation state attack. What are you hearing now?
WRIGHT: Well, it's interesting there is a couple of things that came out. Brian Krebs whose site got taken offline by very similar cyber-attack. And the same company, Dyn, published a paper critical of a competitor talking about their tactics and how to push the envelope.
So, there's been and this is all open source right now, so there's been some discussion of that. It clearly was a targeted attack, Liz. It was designed to go after just a certain segment. They didn't ask for anything. In other words, it's not like holding you for ransom. There was no, you know, taking claim for victory of something.
So, we don't know what it is yet. So, everybody don't rush to judgment yet. I think that it's Russia at this point but you know, it could be a variety of things. What we do know that it used to a lot of different devices that haven't been used before or not commonly think like web cameras, DVR's.
And this was a tsunami of data. This was, I mean, this is huge. I helped to investigate the first analysis source attacks back in February of 2000 that paled in comparison to this one today.
MACDONALD: So what does this mean for people who use Amazon and Netflix out there and Twitter. What's going to happen?
WRIGHT: Well, you're going to get some interruptions and service. Look, fortunately, these things are not life and death. Although to some people, Twitter, Facebook, maybe are. But you know, it's not life and death. So, nothing is going to happen.
I would get more concerned when we start going after critical infrastructures like banking like energy, transportation, you know, healthcare, or public safety. So, that's my real concern. I think these were targeted to go after non-critical things even though they drive a lot of business and people are in the business of making money who sends were in the public safety.
(CROSSTALK)
MACDONALD: Stay with me. Hang on. You're worried about a very vulnerable U.S. power grid. Is that what you're saying?
WRIGHT: OK.
MACDONALD: OK.
WRIGHT: Yes. And absolutely. I mean, the black energy that the Russians we know were behind the black energy attacks in Ukraine December 23 2015, 700,000 homes. What if this was reconnaissance, this is probing. We don't know who's behind it yet.
MACDONALD: OK.
WRIGHT: But this exposes, even if it's not the same actors this exposses vulnerabilities and the domain name service that need to get fix.
MACDONALD: Let's move on to a major vulnerability.
WRIGHT: Yes.
MACDONALD: A former NSA contractor.
WRIGHT: Wow.
MACDONALD: he was with Booz Allen, he will be charged with what could be the largest most historic theft of classified government material ever. Prosecutor say, Harold Martin, you're looking at him right now. He stole an "astonishing quantity" that's a quote, of classified digital and other data over 20 years.
This has been going on since 1996. What did he do with the data? Well, we know for now that he kept in his car, his home office the (Inaudible) his own property. The document apparently, Morgan, they basically detailed some of the country's most secret intelligence operators.
WRIGHT: Absolutely.
MACDONALD: And they may file more serious charges. Remember, this comes on the heels of Edward Snowden who also work outside contractor.
WRIGHT: Right.
MACDONALD: What do you make of this?
WRIGHT: I actually taught behavior analysis out of the National Security Agency. I taught to the damage assessment agents who are the people doing this right now.
Here's what this tells me, Liz. It's that every five years, especially when you have the type of clearances that takes to work at the National Security Agency, not only did you go through reinvestigation, you go to a polygraph.
So, my fist question is, how did this guy pass a polygraph, not once, twice, but it looks like maybe three to four times. And where were the controls in place to prevent these kinds of things from going out.
I mean, let's put it in perspective. One of the reports is that he had 50 terabytes of information. That's 10 libraries of Congress. That's a stack of a 125 million pages of documents that would go 50 miles high.
That's the amount of information we're talking about here. And how he was able to get it out the door, boy, if somebody doesn't get fired over this I don't know what it's going to take.
MACDONALD: Yes, it's quite a development. Thank you, Morgan. We also, watch this. We've got House Judiciary Committee Chairman Bob Goodlatte raise a concern about a top Clinton adviser use of laptop made by a company with long suspected ties to the government of China.
The intelligence concerns here. That story and former Secretary of State Hillary Clinton's e-mail. It will bring further developments.
Morgan, what do you make of that?
WRIGHT: There are -- it's a long time when IBM sold Lenovo to China. So, they'll think that division to Lenovo which is a Chinese company. I can tell you because I was working at one of the companies immediately. Switch to every single laptop to an American-made manufacture.
So there have been concerns and we know from the revelations of these -- of these tools and is a hacking tools that there are ways to get past build things into the framework. The actual hardened -- the hardware inside the laptop where you can actually activate Trojan horses, collect data.
Our government does a lot of that. So, yes, I'm very concerned these things. People trust the laptops they don't think about it when they get it.
MACDONALD: OK. Morgan, thank you so much for time. I really appreciate it.
WRIGHT: You bet, Liz.
MACDONALD: A new WikiLeaks e-mail of Hillary's aide say Bill Clinton get, quote, "many expensive gifts that he gets home from Clinton global initiative sponsors."
Apparently, there are 500 examples of this. We don't know it could be even more. That story is coming up next.
Also, General James Cartwright. He was the vice chair of the Joint Chief of Staff, a highly decorated general. He's a 40 year veteran. He is going to jail. How was what he did stuck up with what we know about Hillary and what happened with her private e-mail sever. That's next. Don't go away.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) U.S. PRESIDENTIAL CANDIDATE: One lie. She's lied hundreds of times to the people to Congress, and to the FBI. He is going to probably going to go to jail. This is a four-star general.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MACDONALD: A new alert. ISIS fighters attacking the strategically the oil city of Kirkuk, Iraq. Starting a massive gun battle in the heart in the heart of the vital Kurdish stronghold. Basically Kirkuk sits between Mosul and Baghdad.
And this is a show of force is. We're focus on ISIS-held Mosul.
Joining me now, the former director of the CIA, national security adviser to Donald Trump, James Woolsey. The United Nations now -- it's good to be with you, sir. It's warning that ISIS has taken more than 500 families from villages around Mosul to use as human shield in this battle for control of the city. They could be doing in Kirkuk as well.
What do you make of the strategy?
JAMES WOOLSEY, FORMER CIA DIRECTOR: Well, it's a typical ISIS strategy brutality that they put so many people in cages and burned them alive and thrown people from buildings to die that it's sort of hard to keep track how terrible their tactics and approaches are.