• With: Judy Miller, Jim Pinkerton, Juan Williams, Richard Grenell

    SCOTT: And then there was this credit to the folks at Univision that had President Obama on for a town meeting. They asked him a simple question. They said, why wasn't the administration better prepared with more security at our embassies on September 11th. The president's answer ran two minutes and 52 seconds. I would love to be able to play it for you here but we can't.


    He never answered the question. He mourned the death of our ambassador. He said something about the movie inciting riots. But he never answered why there wasn't better security.

    Next on "News Watch," questions about the ties between the Obama Department of Justice and a liberal media watchdog group.

    ANNOUNCER: An investigation into the bungled Fast and Furious gun- running operation reveals more details. And internal Department of Justice e-mails prove a collaboration between DOJ officials and liberal Media Matters to attack critics. What does it all mean? Details next, on "News Watch."


    SCOTT: It appears, thanks to a Freedom of Information Act request, that we have the proof that the Department of Justice conspired with the far left Media Matters web site to attack Department of Justice critics.

    Fox News correspondent, James Rosen, has that story.


    JAMES ROSEN, FOX NEWS CORRESPONDENT (voice-over): Six months ago, Tea Party figure, Judson Phillips, appeared on Fox News to advance the claim, hotly disputed by the Obama administration, that Operation Fast and Furious was designed to usher in draconian gun control laws. At the Department of Justice, someone was watching closely, because 90 minutes later, Tracy Schmaler, director of the department's Office of Public Affairs, e-mailed a transcript to Matt Gertz, deputy research director of Media Matters for America. "You see this?" Schmaler wrote, "Completely false. Wide receiver, and Hernandez" -- two gun-tracing operations launched under the George Bush administration -- "put this to a lie. There's been lots of coverage on previous Bush operations."

    By that afternoon, the Media Matter's web site featured this blog post critical of the Philips segment.


    ERIC HOLDER, U.S. ATTORNEY GENERAL: We thank you all for your service.


    ROSEN: That Attorney General Eric Holder's advisers have worked so closely with Media Matters is the chief revelation from 69 pages of DOJ documents that the department belatedly provided under the Freedom of Information Act to the conservative web site, The Daily Caller.

    TUCKER CARLSON, EDITOR, THE DAILY CALLER: It is clearly a purely unadulterated attempt to lie about the news. In one case, we have the spokesman from the Justice Department e-mailing Media Matters and saying, in effect, why don't you do a story on this. I just saw something on Fox and I don't like it, and why don't you attack it.

    ROSEN: Founded by David Brock, the conservative reporter-turned-liberal activist, Media Matters is tax-exempt non-profit ostensively dedicated to exposing media bias. In reality, the group's sole mission, underwritten in part by liberal billionaire, George Soros, is the destruction of Fox News.

    JAY SEKULOW, CHIEF COUNSEL, AMERICAN CENTER FOR LAW & JUSTICE: You utilize them as your proxy in engaging in a dispute, whether it's on the New Black Panther Party and the denial of the Department of Justice to bring civil rights actions against them, or whether it is on the coverage of Fast and Furious, should really raise serious concerns.

    ROSEN: The Justice Department declined to comment. A spokesman for Media Matters said he would comment only if he could appear live on this network.

    In Washington, James Rosen, Fox News.


    SCOTT: So what about this collusion between the Department of Justice and Media Matters? Is it getting any play?

    JIM PINKERTON, CONTRIBUTING EDITOR, THE AMERICAN CONSERVATIVE MAGAZINE: Not much. Look, James Rosen's piece raised the issue of David Brock's declaring to Politico, that, quote, "He wants to launch a campaign of guerrilla war and sabotage against Fox." That led Boyden Gray (ph), former counsel to the president, to say, gee, I don't think that group engaging in guerrilla war and sabotage out to have a tax exempt, which I thought was a pretty good argument that the mainstream media didn't seem that interested in. But now we have this, where they're not just engaging in guerrilla war and sabotage, they're part of the Obama reelection campaign. You think that would be news as well. But for perspective, imagine what the mainstream media would do if the Heritage Foundation was caught doing the exact same thing with the Bush Justice Department three or four years ago. That would have been news.

    SCOTT: George Soros gave a million dollars to Media Matters and he's given other funding to other organizations that he's involved with. He got a tax deduction for that million dollars because they are tax exempt because they are supposedly this truth teller. Shouldn't this force some reconsideration?

    JUDY MILLER, WRITER & FOX NEWS CONTRIBUTOR: I think absolutely it should. We've talked about this a lot on this show. I want to step back for just a moment to point out that this is week where we had a cascade of departures from the ATF, from people involved in Fast and Furious. They finally had to acknowledge that this was not a story concocted by Fox News or the quote conservative media, but it really was a legitimate story, that some people had done bad things and they had to leave. Look at the play that that got. Not very much.

    SCOTT: Why not, Juan? Why no coverage of the Fast and Furious report?

    JUAN WILLIAMS, FOX NEWS POLITICAL ANALYST: Well, I think Fast and Furious is so highly politicized and I think it has become a target for the right. And I think people at this point, given the way it was handled in Congress, given the fact that Eric Holder, the attorney general, was found in contempt of Congress and then the resolution, I think a lot of people feel like it's played out. But let me come back --


    SCOTT: Well, it sounds like you are saying that because people on the right don't like it, it's not going to get covered?

    WILLIAMS: No, no, no. People on the right cannot like or -- I think such certain point, people feel like the story's been told. We know the story. Everybody has the details. Everybody has seen the parents of the dead man.

    GRENELL: But here is the problem is, that it has been politicized and that the left has said it's a lie, it's a lie, it's a lie. We just found out it's the truth.

    WILLIAMS: What's the truth?

    GRENELL: There the truth there was that stuff being done and a cover-up.

    WILLIAMS: Nobody doubts there was bad stuff. We know somebody died.

    GRENELL: If we would admit this on the front page of the New York Times, I think we would let it go.


    WILLIAMS: No. I think everybody has admitted to the --


    SCOTT: We have to leave it there.

    Next on "News Watch," Jesse Jackson makes news but doesn't get media attention. Kate Middleton does get the attention but doesn't want it.