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tv   Anderson Cooper 360  CNN  January 3, 2017 5:00pm-6:01pm PST

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chest he lifted to rescue his twin bro. jeanne moos, cnn, new york. >> obviously a wonderful ending there but make sure you bolt things. thanks for joining us. watch "out front" anytime, anywhere. anderson is next. >> good evening. thanks for joining us. breaking news on president-elect trump's delay in unplugging himself from the family interest. there's new ties to the convicted felon joey no socks. a 180 on house gop plans to gut the watchdogs keeping every member of congress, republicans and democrats honest. that and breaking news on russian efforts to med until the election which is where we begin with late word that a new classified report is about to hit and the measures being taken to make sure that donald trump gets the best possible look at it. pamela brown joins us now.
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what are you learning about this report? >> this is a comprehensive review of the election hacks in roush sha ordered by president obama recently. there will be two versions, classified and declassified. we're told by officials the version that put together by the intelligence community is expected to be done this week. that will be the classified version. then there's the one that will be made public that basically has this declassified information newly declassified information to make the case about why the intelligence community believes the russian government is to blame. so we're being told by officials that this will include information that we haven't heard about before and basically back up the intelligence community's assessment in terms of why it believes russia was the perpetrator. we're told that there will be intelligence that's classified that will not be in the public report because officials don't want to give away sources and methods. but it will contain a lot more information than what we've
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heard so far. trump is expected to get his briefing on the classified report as early as this friday we're told. >> he's also getting some pretty high-level briefers. >> that's right. chief spy james clapper and john brennan are just a couple of the lead officials briefing trump. this was per trump's request. it's not necessarily unofficial for an incoming president to be briefed by the top leaders in the intelligence community but as we know what is unusual is the fact that this high-profile briefing comes after months of trump publicly questioning the intelligence community's assessment as recently as this past weekend saying he's skeptical about it. so it will be interesting to see, anderson, if he walks away after this briefing any more convinced about russia's role. we heard today from the pentagon spokesperson john kirby that the u.s. is 100% about russia's role, that the information is rock solid, so a lot of us will be interested to see what trump's reaction is to this report. >> pam, thanks for your
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reporting. we were waiting for the president-elect to make good on a commitment he made new year's eve on the subject. take a look. >> i know a lot about hacking. and hacking is a pretty hard thing to prove. so it could be somebody else. and i also know things that other people don't know and they cannot be sure of this situation. >> what do you know that other people don't know? >> you isle fupd out on tuesday or wednesday. >> tuesday was yesterday. we have breaking news on that scene. jim acosta has the latest. do we know if we'll hear from donald trump on this? was it clear he was saying meaning he would announce something or was e talking about the report that would be put out? >> anderson, it sounds like he was talking about something he would say that he would tell the public on tuesday or wednesday. but i'm told by a top transition official that donald trump will
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not be making any formal remarks about russia hacking in the 2016 election tomorrow despite the fact he told reporters there that he would have more to say on this and knows more than what the public knows about russian hacking in the 2016 election that he would be talking about this on quote tuesday or wednesday. tomorrow is wednesday. that is not expected to happen according to this aide who says anything can happen with donald trump, so there is a slight caution there that he could potentially decide at the last second to say something tomorrow about this. but at this point there are no plans in the works or any kind of formal remarks on this. just to jump on what pamela was saying, i am told by a trump transition official he is expected to meet with intelligence community leaders toward the end of this week. that is when he's expected to receive that final report from the intelligence community on russian hacking in the 2016 election. one of these officials told me it wouldn't be appropriate at this point for them to say more
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about this until they get that report. they feel like this whole allegation and intelligence community finding about russian hacking has been politicized and used as a way to delegitimize donald trump's election in the 2016 race. but you heard donald trump over the weekend calling into question these intelligence community findings that russia was hacking and releasing damaging information about hillary clinton during the election. you heard donald trump say over the weekend he has as much faith in that as when the intelligence community said there were weapons of mass destruction in iraq. so he is coming into this meeting when it happens this week as a big skeptic. >> jim acosta, appreciate it. james woolsey served as director of central intelligence in the early clipton administration. senior adviser to the president-elect donald trump. thanks for being with us. do you know if president-elect donald trump is planning on making an announcement? >> i don't and i would leave it up to his people that work on press statements and so forth to
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carry that information. i don't know. >> yesterday you said that while you do believe that the russian hacked you also believe others could be behind it as well. today some sources are telling cnn there's no indication other countries like china or iran played a role because other countries have specific digital footprints. but do you believe others could have been involved? >> yes and it's important to keep a couple of things clear. the word hacking covers a multitude of possibilities. everything from looking into a system to see what's there and then going away to making changes to the voting machines so your side wins. so far i think most americans would regard hacking in to voting machines as meaning you're making some changes in what the totals were. but that apparently has not occurred here. there's no indication that it's occurred. they apparently looked for it to see if it had happened and did not believe it had. a footnote to this by the way, we do need to fix our voting
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machines so that two and four years from now they cannot be essentially falsely programmed by a hacker. >> third option is-in hacking, which as you said one is affecting voting machines, no evidence of that, the other looking around to gather information, the other is what some believe happened which is them or somebody looking -- getting e-mails and releasing them, kind of weaponizing the information, whatever the results may have been. that's up for debate. >> i don't know what it means to weaponize the information. if information was turned loose and as a result of that when found what the democratic national committee was doing to bernie sanders to tilt things against him, then fiddle on the democratic national committee. i'm sure that was embarrassing to them. but it's a little hard to make that be i think a salient
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example of how the election was changed. >> the argument is, and again i'm not saying this necessarily affected the outcome of the election but certainly there are democrats who believe that just the embarrassing, you know, drip, drip of information of what, you know, all the stuff that was revealed about the dnc may have had some sort of impact. i think it's an arguable point about what kind of impact it had. >> my understanding is that the fbi worked with the republican national committee and the rnc let them in to do analysis and figure out what was going on and if they were being hacked and if there was any information on -- they could find and so forth whereas the dnc didn't or couldn't do that because they were under investigation for other things at the time. but if one of two parties has said to the fbi come in, here are the keys to the kingdom,
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look at anything you want, and the other has not done, that it seems to meitis odd to be more suspicious of the one that is being open. >> are you as one of the president-elect's senior advisers expressed to him -- you do believe the russians are behind this, you believe other actors could be out there as well, have you expressed that to donald trump? >> behind is i think a bad word here because i believe and i think probably a lot of people believe that the russians did something. and it is entirely plausible if something like that occurs and a lot of hacking is going on in the sense of looking into something that other countries could have been involved and it would be surprising to me if they were not. but i don't think that that means that there was anything untoward in an attempt to change the outcome of the election either by fiddling with the
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machines or any other way. i don't understand how what happened is supposed to have changed the outcome of the election. it seems to be a real stretch. >> wa you just said, and you said that to president-elect trump as well? >> i've worked for four presidents over the year, two republicans, two democrats, didn't tell anybody what advice i give them or say to them nor what they say me and i'm not going to start more. >> kind of knew you would say that. you said yesterday there is a possibility president-elect trump is playing with us or the media. what do you mean? >> we were talking about the campaign at the time. i think he goes into a different mode of operation when he's before a large crowd and he's playing to the crowd than he does, for example, when he's in a small meeting and i've been in a couple of those with him of just a very few people. very reasonable, straightforward, good questions, interesting answers.
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he's not like he is standing before 50,000 millennials and leading them in cheers. >> as we heard in pam brown's reporting, the president-elect is expected to be briefed on the review into hacking by john brennan and james clapper. the fact that the leaders of the intelligence community will be briefing him, does that say anythi anything? is that common place? >> i don't know. this whole situation we're in is different than what we've seen before. people are interested in this issue and it's an important one. i see nothing particularly odd or wrong at all about having the top two people in the intelligence community take part in the briefing. my hunch is if they're technical subjects at issue you'll find that somewhat lower-level people make more of a contribution than the people at the top of the organizations.
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>> finally, the hacking that china was according to the u.s. government involved with in which people say information was actually taken, do you believe that as more serious or how do you see that compared to what russia is now being accused of? >> compared with bernie sanders being treated badly by the dnc, it seems to me that losing millions of background data about people or security numbers, their friends, their associates, their businesses, all of this in forms that they have to fill out, losing that to hacking by china is so far more important it seems to me than the tiff between the dnc and bernie sanders that i'm kind of staggered by anybody who would think it differently.
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>> ambassador woolsey, appreciate you being with us. >> good to be with you. >> more breaking news. this time on president-elect trump's plan to untangle himself from any business ties that might tie him up ethically. how gop house members nearly got their wish to weaken the watchdog and donald trump's role in stopping them. moms know their kids need love, encouragement and milk. with 8 grams of natural protein, and 8 other nutrients to provide balanced nutrition. moms know kids grow strong when they milk life. and 8 other nutrients to provide balanced nutrition. so we sent that sample i doff to ancestry. i was from ethnically. my ancestry dna results are that i am 26% nigerian. i am just trying to learn as much as i can about my culture. i put the gele on my head and i looked
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congress is back on th johe. >> speaker of the house paul ryan. >> thank you. >> paul ryan re-elected house speaker. what these lawmakers decide will have consequences. republicans' first order of business before repealing obamacare or anything else in the agenda before today's opening gavel sounded was a secret vote to essentially cripple the nonpartisan office set up for one reason -- keeping lawmakers from either party honest. then a massive outcry, then a tweet from donald trump. now the plan is toast and mr. trump is poised to take the credit. manu raju joins us from the capitol. how did we get from a to b here and how much did donald trump's tweet affect the outcome? >> you know, anderson, this was not part of the plan, the
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proposal to gut this ethics watchdog, not part of the plan that the house republican leadership and the trump transition team set out on ever since election day. they had been trying to lay out a number of things they want to do ranging from repealing obamacare to reforming the tax code, going after obama regulations. going after this ethics agency only came up in a closed door monday night meeting when congressman bob goodlatte of virginia offered a proposal to change house rules in order to put what he believes is more oversight of this committee. critics said this would have gutted the committee. once that proposal actually was adopted in this closed door meeting by house republicans, it got a lot of blowback publicly. members of congress were getting tons of phone calls from angry constituents, getting bad headlines in the press, and donald trump tweeted saying earlier this morning that he does not think that this is what congress should be doing.
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actually saying with all that congress has to work on, do they really have to make the weakening of the independent ethics watchdog as unfair as it may be their number-one act and priority saying they should focus on other things like tax reform and health care. that led after all this pressure was building, house speaker paul ryan holding an emergency meeting with his members, ryan himself opposing this idea and prevailing upon his members to join with them because they do not believe they had the votes to actually approve this rules package in the full house this afternoon and led to the decision to abruptly scrap this plan to try to get on the same page. >> i understand paul ryan spoke with donald trump tonight. do we know what was discussed? >> that conversation happened after this vote took place. there were no discussions from what we understand before this about-face by the house republicans. this is part of their efforts to try to stay on the same page
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going forward on obamacare and the like. the exact details we don't quite know yet. we'll learn more when house speaker paul ryan talks to reporters tomorrow and also tomorrow, anderson, mike pence coming to capitol hill to meet with house republicans and senate republicans to discuss their plans on obamacare. >> does this affect party unity in any way? >> it's a sign of the real challenges republicans will have staying united. this ethics issue is a small issue compared to the huge monumental issues they want to deal with in the new congress. talking about party unity, that will be essential, not just getting things done through the house where they won't get much democratic support, but also the senate, where they need democratic support to pass donald trump's agenda. once you start getting democratic support you may lose some conservatives. party unity is very challenging. it is a sign of the difficulties ahead for donald trump. >> manu raju, thank you. john king and gloria borger. clearly republicans have
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realized this was a wrong move politically. why attempt this in the first place? >> i know. it leaves you scratching your head. maybe they wanted to lower their approval rating even some more or maybe it's just because they could? by to do this behind closed doors at the last minute as part of a larger piece of rule making legislation leaves you wondering why would they. you talk with some republicans today, look, it's clear that they believe that this office of ethics is too aggressive, that they believe they are denied very often due process in it, they don't like the fact that people who are anonymous can make complaints against them or their staffs. and they will tell you this openly. but if they feel that strongly about it, the question is why not do it publicly? why not have a public debate on it and then have a vote out in public which is what they decided not to do after donald
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trump tweeted today. >> what about president-elect trump's reaction? does it gave clue about how he might react with his own party on the hill? >> it does. this was first a gift to democrats, republicans doing it the way they did. a lot of democrats don't like this agency either. gloria noted if they said publicly they wanted to change this, they probably could have had some democrats with them. they do it all republicans first, giving democrats a low hanging pinata on the first day of the new congress and then donald trump jumps in. does he deserve all the credit? of course not. liberal groups and tea party groups were lighting up the switchboard. trump sees this train, not only he jumps on it but takes it over and shames his own party publicly. he's about to be a republican president with a republican congress. manu mentioned how important unity is. but trump had no druthers about publicly shaming his own party saying this is a bad idea, drop it. >> it is interesting whether that is a sign of how he may
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interact with congress and maybe it's something even some democrats would be behind. >> yeah. i think donald trump is going to call it a -- if he believes that the republican leadership is doing something they shouldn't do he doesn't have particular ties to paul ryan or mitch mb contin mcconnell. he'll tell them. if he agrees with democrats wanting to spend money on infrastructure, he'll do it. donald trump won't call privately on the phone. he'll use twitter and shame his own party if that's what it takes to get his message across. he's always run on his own, not as a part of any particular group and that includes the republican party. >> john, how much of donald trump's objection to this was the timing of it? essentially saying is this really the first thing you all should be doing? and how much was sort of a
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belief that it shouldn't be done at all? >> he wants to get off to a good start. he promised to drain the swamp. what the house republicans were proposing is to put the fox in charge of the henhouse. completely contrary to what trump promised in the campaign. a lot of questions about whether trump will drain the swamp. we'll see how that plays out as it goes forward. this was such a gift for trump, he came to the help of paul ryan, the house speaker, who it's interesting to watch here. rank and file republicans were doing something, they knew their speaker, knew the speaker's number two, kevin mccarthy, opposed. we have to watch this going forward. last year we thought he might be expint. this is a gift from trump. if you're a democrat or independent, donald trump did something you like today. he wasn't alone. he's not the only reason this
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happened. he smartly jumped in at the right moment and shares the credit. >> gloria, even though this was resolve today because of the complaints, it certainly wasn't the festive opening of a republican-led congress that i think a lot of people on the hill were hoping for. >> no. this wasn't the way they wanted to start this. this was an embarrassment to the republican party. even the you don't believe the office is fair, do you want to start his first hundred days by doing something that is the opposite of draining the swamp? i don't think so. what it did was it shined a light on the swamp. that is not what drump wanted and i don't think it's what the house leaders wanted either. so while he did kind of save them today, i guarantee that you
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there are going to be other times he jumps in and he doesn't save them. >> we'll see. we have a lead update on our top story, president-elect trump casting more aspersions on the intelligence community and alleged meddling in the election by russia. he tweeted moments ago the intelligence briefing was delayed until friday. perhaps more time needed to build a case. very strapg. up next, more breaking news on the future of donald trump's business ties. what we've found out from sours who might be part of the leadership. and will the president-elect fully divest. business cards? business cards, brochures, banners... pens? pens, magnets, luggage tags, bumper stickers. how about foam fingers? like these? now, get 15% off making your company stand out. staples. make more happen. wonly new alka-seltzer plus st want powerful relief. free of artificial dyes and preservatives liquid gels delivers the powerful cold symptom relief you need without the unnecessary additives you don't. loudspeaker: clean up, aisle 4.
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your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™. liberty mutual insurance. more breaking news. president-elect trump tweeting about a news conference in january on new york city. thank you. what are your sources telling you about this? >> it's not clear what he'll to co-do in this press conference to detang from sprawling business interests. it's unlikely he'll say he's divesting completely. there are a lot of reasons for
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this. part of it is mentality. he's spent four decades building this company. he wants to see his kids taking it over. they don't see it as feasible for him to divest completely. one of the options is the possibility of adding sort of an outside trustee to add another layer to bat back conflicts of interest and to work together with donald trump's sons and existing executives from the trump organization. >> this is the announcement that the transition team has promised to make i think in december. >> they weren't comfortable. it is complex. he has a lot of business interests. a number of officials believe this is going to happen. >> kellyanne conway gave the
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same date. >> they seemed like they are prepared to roll out details. >> is this going to be an actual press conference? another criticism that's been made, trump had been critical of hillary clinton for not giving press conferences for going 150-some days without -- he's gone a long amount of time. >> they're billing it as a press conference. they know people are itching to ask him questions. he's taken questions from small pools of reporters but not held a big official press conference where we know we can be there and have an opportunity. i think that's what they're expecting to do. the caveat we have been duped by donald trump before. remember the day he was going to say he believed president obama was born in the united states. he did not take any questions that day. even though we were led to believe he was going to. >> in terms of ivanka trump and jared kushner, they have settled on a property in washington, d.c. >> one thing is clear that they are washington bound. they have settled on a property in washington, d.c., and the transition team feels like they're on pretty solid ground in allowing both of them to be
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advisers to donald trump in washington in the white house. the discussions that are still ongoing, whether they can give them a formal title and still be okay under ethics rules. really if you were talking to ethics experts they are public in their belief that they think it's a worst-case scenario. they bring ivanka trump and jared kushner in and not give them titles. the transition team has not said whether they'll do this or have some other back channel way to figure ot an official rule for them but it seems clear he'll have two top allies in washington. >> thanks very much. john king is back. and david, when i spoke to kellyanne conway she said trump would have the press conference when the lawyers and compliance officers feel they're ready. how complicated is it if he's handing over the reins to his
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two sons or bringing in a trustee? >> quite complicated. trump know where is the investments are, what the plans are, the holdups with various local permitting authorities all around the world. so the idea that he could sort of hand it off to his sons and avoid conflicts of interest, what we care about is if foreign companies or governments will use trurp's properties to influence his decisionmaking. if he knows how those are going, it's still a problem. >> john, a lot of ethics experts have said that they are concerned these moves may not go far enough. he does seem like it is what it is. the broad outlines, the arrangement. it doesn't seem like they have changed all that much over the course of the last month or so. >> let's see when we finally here and what we assume will be january 11th, the day after president obama's farewell address. maybe they chose it to try to turn the page and keep attention off the incumbent and turn it to the president-elect. but you're right, if they're adding a trustee, that will
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probably be applauded as a step. as david said he'll be the president of the united states whether it is foreign governments trying to curry fave with him or the sons trying to take advantage of trying to promote the business thinking people will do favors for us and have access for us because we're the sons of the president. transparency is going to be key here for staters. look, his name is his brand, his brand is his business. it's clear donald trump is having a hard time separating himself from the two of those. i've argued give him some grace and time because it's so personal and hard. but we're now 17 days away from his putting his hand to the bible and if this is the best they'll do, you can be certain great reporters like david who have done a lot of work on this subject will keep at it throughout the trump presidency. this if they're not perfect, it will be a problem. >> not just trump's business arrangements ethics experts have raised concerns about, also the fact his daughter and son-in-law will end up with roles in the white house. it's unclear as to whether or not that is allowed. >> right. ivanka and jared kushner will
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keep presumably their business rules. you have top advisers for the president who could be influenced or you could raise questions about the influence about their business dealings. the important point is if you like donald trump and want him to succeed and get his agenda done, you want to find a way to put this behind him. otherwise he'll spend his political capital batting down one scandal or another as these conflicts of interest come to life. >> john, whether donald trump believes it is serious for his critics it certainly is low hanging fruit for them to attack him on. >> no question.low-hanging frui attack him on. >> no question. democrats will tell you every day hillary clinton won the popular vote and that the responsibilities of the president require you to take extraordinary steps to put the country first, not yourself first. donald trump deserves some sometime because this has been his entire life, the fist time he's run for office. it is complicated. but he's had time since the election and throughout the campaign to understand this was
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the possibility. again to david's point, the law does not require him to give up his business but if that is the course he takes essentially he removes himself but his family is still intimately involved. we assume his sons will be coming to the white house for family dinners, official functions and things hike that. he's had his sons in transition meetings. they've helped him pick members of his team. even if there is nothing there, there will be a whole lot of smoke even if there's no fire, but he'll look for fire. >> david, does ivanka have to give up all her licensing businesses and, you know, she's worn a dress at the republican convention making a speech that was sold through her company and wore a brace het in the "60 minutes" interview? does she have to give that up. >> depends on the role she gets. if it's formalized, she might have to. to john's point, people say trump was a businessman. during the campaign he said i'm
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going to have a blind trust. anything less than that is a violation of that promise he made on the trail. >> a blind trust is a specific thing, not just giving operational control to your kids. it's divesting yourself completely and not knowing what's going on. david, thank you. john king as well. president-elect trump has just weighed in on the intelligence pointing to kremlin involvement in the hacking of the democratic national committee and hillary clinton's campaign, 16 u.s. intelligence agencies and the director of national intelligence believe russia is involved or responsible. mr. trump has doubts aptd expressed them on twitter saying the intelligence briefing on so-called russian briefing was delayed until friday. perhaps more time needed to build a case. very strange. pamela brown is back with the latest. this tracks with your reporting about the informs but another indication of his secret schism. >> right. not only is he challenging the
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assessments that russia was behind this but the intelligence agencies that he will be working with hand in glove when he is president of the united states. so it's fascinating to see this play out, anderson. i just got off the phone with an intelligence official who is perplexed by the notion and by the claim by the president-elect in this tweet that the briefing was delayed. we know at least one of the intelligence leaders, james clapper, who's supposed to be there at that briefing about the russian hack was never scheduled to go up to new york before friday to brief the president-elect and so there is some confusion in terms of what he is talking about. in fact, the comprehensive review about the hack and the fact they believe russia is to blame hasn't even been presented to the president and that would happen before the president-elect was briefed. so it's fascinating dynamic playing out and this will be the first time, anderson, when this face-to-face briefing happens that donald trump will be in the
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same room as recently of criticism with the leaders in the intelligence community. you have to wonder what that's going to be like. >> also i assume him putting the word intelligence in quotes is a jab at the intelligence community kind of -- >> right. >> saying essentially how intelligent are they really. that can't play very well for an entire, you know, there are many, many thousands of people who work very hard to try to keep the country safe and take pride in their work in the intelligence community. >> right. from their view, from people in the intelligence community who have been working hard on this and the analysis and coming to this conclusion, they feel like this is an attempt by the president-elect to undermine their work. why, we don't know. we know that there have been these periodic briefings from people in the intelligence community to the president-elect. there was one as recently as today but i think there is some puzzlement within those in the intelligence community about why their work and the -- all the
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different strings of intelligence they have to bolster their confidence about russia continues to be questioned by the president-elect. that's their view. >> pamela, thanks. just ahead, the treasury secretary nominee steven manu chip is bracing for tough questions about the california banking brand with shoddy banking business practices. anything meant to stand needs a stable foundation.
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doesn't ruin this whole life thing. because it's more than just health care. it's life care. confirmation hearings for several cabinet nominees are set to begin next week expected to be in part contentious. democrats are vowing to stall action on eight of trump's picks
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including choice for treasury secretary, steven mnuchin. his official bio highlights his time as a ceo of a hedge fund and the company he co-towned that's produced hit films like x-men and "avatar," leaves out other parts of his resume including the controversy, certain to come up at a's confirmation hearing. drew griffin reports. >> steve mnuchin like donald trump is a deal maker and during the housing crisis he saw a deal, ipdie macsold off by the u.s. government and he bought it, renamed it one west, took over and expanded it reverse loan mortgage program and then increased the pace of foreclosures. >> one west was the foreclosure kings in california. they were bigger companies like countrywide that foreclosed but they had a much larger market share. >> reporter: how big? in the first six years of his
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leadership, 16,000 reversed mortgage foreclosures were carried out by one west and its subsidia subsidiary, fipgs freedom. 4 out every 10 in the country, more than twice what a lender of its size should have produced according to john taylor, ceo of a consumer rights group focusing on big banks. >> they were going to foreclose on as many peel as they could because that was the business model. they'd make a fortune. >> mnuchin sold one west to cit group for more than twice what he paid for it. he became vice chairman of cit chin hearted the foreclosure mess. dozens of lawsuits and a federal investigation would follow. >> this is james garner for financial freedom. >> reporter: the pitch was simple -- older people searching for a new source of income in retirement could make a deal with financial freedom. get monthly paychecks and remain in their house rent free until
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they died. >> if you're 62 or older and own your own home i'd like to talk to you about something you should know. >> reporter: turns out there was a very big catch that a lot of people did not know about. the person who bought the reverse mortgage could stay in his or her house until they died, true. but after death, everyone else living in the house would have to go unless they paid back the loan. elizabeth's grandmother died in january of 2014. a letter from financial freedom arrived almost immediately telling the survivors to pay up. >> they said that the house needed to be paid in full by april 28th or else they would foreclose the property. >> reporter: unless specific arrangements were made in advance, surviving widows, children, partners or grandchildren would be kicked out. consumer groups say that information was buried in the fine print. >> so they just gave us a deadline. they didn't even give us a
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program or a step process to try to save the house. it was just really cold and dry, cutthroat and dry. >> reporter: financial freedom tried four times to foreclose on her grandmother's home. she fought back. she got help and she stopped it. others weren't so lucky. >> this was a big part of their business, and, you know, it caused a lot of pain and suffering for a lot of seniors. >> federal regulators heard horrible experiences, onewest and financial freedom. this letter is from a woman who says onewest was guilty of, quote, unethical business practices. another from a 90-year-old woman whose loan repayment accidentally came up 27 cents short. instead of trying to fix the problem, financial freedom tried to foreclose over that 27 cents. mnuchin supporters say don't blame the bank, blame the federal bureaucracy that set up
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the rules of government-backed reverse mortgages. a source familiar with onewest operations told cnn the department of housing and urban development, or hud, set up specific rules, deadlines and procedures banks had to follow and said onewest under steve manuchin but just following thoe rules. a hud spokesperson told cnn while it doesn't dispute it has strict rules for government-backed reverse mortgages the spokesman said onewest had the ability to give survivors more time but chose not too. manuchin didn't answer question directly but a spokesperson says the nominee for the u.s. treasury secretary remains proud of his record at onewest and says during the height of the housing crisis mnuchin was able to save three institutions that were in receivership, did tens of thousands of loan modifications, saving homes and jobs, and developed onewest into a regional banking franchise
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that in turn made loans to consumers and businesses that helped create jobs. >> drew, the fact that mnuchin's bank foreclosed on 16,000 reverse mortgages, how big an issue is that for his confirmation hearing? >> it will be big and this could get worse. it turns out lawyers in california's attorney general's office were calling on the attorney general to open a civil enforcement action against onewest bank back in 2013. and they were citing some 35,000 foreclosures the bank was carrying out at the time. this is a memo we got from the attorney general's consumer law section. it was leaked to us. it's from january of 2013, nearly two dozen pages long and outline what is the state lawyers said at the time was evidence of widespread misconduct including back dating records, fla records, facilitating unlawful bids and other actions which lawyers said deserved a full
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scale investigation. the attorney general at the time, camilla harris, failed to carry through on the advice of her lawyers so nothing came of it but oddly enough she is now the new democratic senator from california and could help her colleagues in questioning ma mnuchin about how he profited while foreclosing on these tens of thousands of california homeowners. >> see what happens. thanks. up next, a new congress and democratic leader. chuck schumer goes after trump and his twitter posts. dana bash talks about the democrats' path forward. will they work with president trump? i came from. i did my ancestrydna and i couldn't wait to get my pie chart. the most shocking result was that i'm 26% native american. i had no idea. just to know this is what i'm made of, this is where my ancestors came from. and i absolutely want to know more about my native american heritage. it's opened up a whole new world for me.
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on inauguration day, senator chuck schumer will become the nation's highest ranking democrat. he gave his first speech as senate minority leader and took aim at donald trump's twitter habit. >> making america great again requires more than 140 characters per issue. with all due respect, america cannot afford a twitter presidency. >> schumer is also vowing to hold donald trump and the gop accountable. he spoke about the democrats' path forward with dana bash. take a look. >> hi, everybody. >> reporter: chuck schumer, arriving for his first day as senate democratic leader. his new large suite still strewn with unpacked box. >> reporter: you guys have some
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decorating to do here. >> yeah, a lot. not my forte. >> reporter: he was hoping to be the new democratic majority leader working with hillary clinton in the white house, instead, he's leading the trump opposition. he proudly described a recent conversation with trump. >> i said mr. president-elect you went after the democratic and the republican establishments, but by your cabinet picks and early pronouncements, you seem to be embracing the time-worn, shop-worn, hard right. >> reporter: you said that to him. >> i did. >> reporter: what did he say? >> nothing. and i said if you do that, your presidency will not come close to being a success. >> reporter: for schumer, success will be even more complicated. a fine line between when to work with trump and when not to. >> the only way we're going to work with him is if he moves completely in our direction and abandons his republican colleagues.
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99% of the time we'll be holding his feet to the fire and holding him accountable. but we're democrats, we're not going to oppose things just to oppose them. >> reporter: i've known you for a long time. you love a deal. >> here's the problem. the republicans in the senate and the house have been run by a hard-right group, an almost tea party group, and they are so far away. >> reporter: but now they've got a tedeal maker in the white hou, just like you. >> we'll look at the specifics. of course i'd like to make a department. >> reporter: a progressive group said democratic leaders from chuck schumer down need to stop playing fftootsiefootsie. >> i'mfootsie. if we can be true to our principles, we're not going to reject it.
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>> reporter: the two new yorkers have a history. schumer says he doesn't know donald trump well but he was one of the senator's early political donors. he confirms the president-elect told him he likes him better than gop leaders. >> he said something close to it. >> reporter: were you surprised to hear a republican president tell a democratic leader he likes you more than the republican? >> when you get to be in my position, people do want to tend to flatter you, but you have to take it with a grain of salt. >> reporter: trump is hardly schumer's only concern. he's also in charge of fixing his defeated didn'tic party. his prescription? >> a sharp-edged economic message that talks about helping the middle class and people who want to get to the middle class get there more easily. we didn't have that in this election. >> reporter: just a task for the man who put himself on the map in the 1980s for being media savvy. >> said by bob dole after he was mad that i passed the brady law,
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which i'm proud i did. >> reporter: now our viewers should know that when we try to talk to you in the hallway you pretend you're on the cell phone, which you know you do. that has changed a lot. >> in the early days, the press was a very good way to bring out problems that needed to be fixed. now i have other leaders of power, so i'm hardly inaccessible. i'm sitting here with you. and you can say a lot of bad things about chuck schumer, inaccessibility never's going to be one of them. >> reporter: same about authenticity. >> there's a balcony. >> reporter: leader or not, refined he will never be. you just put a fire escape down there, it will be like brooklyn. >> that's right. >> sounds like this is not the role that schumer wanted to play, but he could oddly be well-suited and could be a foil for the president-elect for the democrats. >> no question about this. he did not want this. he was looking forward to coming in and try to be in charge of
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advancing the hillary clinton agenda. and now that's obviously not happening, but he also admitted that that would have been more fun, but he said this, given where we are right now in the state of politics is perhaps more important. but walking that line is really going to be incredibly difficult for chuck schumer, because he's got those progressives who really don't want him to do anything. and they're pressuring him big time to really hold the line. but in two years, the very next election, midterms, ten senate democrats who come from states where trump won are up for reelection. so if he doesn't also cater to those and make sure that they understand their constituencies, most of them are pro-trump, then they're going to lose even more votes in the senate. >> all right, dana bash, thanks very much. just ahead, what paul ryan
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