Donald Trump's advice for dealing with Washington scandals

How is president handing situation?


This is a rush transcript from "Your World," May 17, 2013. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: All right, meanwhile, three controversies, and only this guy has gotten the bump, if you think about it. So, should the president be giving more people the Trump?


DONALD TRUMP, CHAIRMAN & CEO, TRUMP HOTELS & CASINO RESORTS: You're fired. You're fired. You're fired.


CAVUTO: Boy, I would always hate to be on the receiving end of that.

The Donald on the phone with us right now.

Mr. Trump, good to have you.

TRUMP: Well, what an introduction that was, huh? That's OK.


CAVUTO: What do you make of this? And if you have ever dealt with this -- I'm sure you have in your various businesses, Donald -- at what point do you say, all right, well, heads got to roll, or do you wait?

TRUMP: Well, it's a very interesting situation, because I can never remember -- I have seen some pretty good scandals, but I never remember three at one time. You have AP, you have the IRS, and you have Benghazi, and it's -- there's never been anything like this. We have had some beauties and you have covered them better than anybody, but there has never really been three at one time.

So, they have got a lot of work to do. There's no question about it. And the stock market goes up. About two-and-a-half years ago, I started investing in stocks, first time ever. I never was a stock person. But I figured the government is giving out free money, that has to be good for companies in one sense, but a little bit false, because when interest rates go up and other things start to happen, you could make the case that it's a little bit false.

But it just seemed to me that the Federal Reserve was saying, stocks have to go up based on what we're doing.

CAVUTO: In other words, they have been providing all of this fuel for buying by keeping rates low, buying all these Treasury notes, mortgage securities and all this.


CAVUTO: And that come to the party, don't fight it.

TRUMP: It would seem that way.

CAVUTO: All right.

Now, to the president and what is going on, we were mentioning at the outset Watergate, the hearings that started 40 years ago today. Obviously, they sort of metastasized into dozens, if not hundreds of hearings, and extended to the Senate and ultimately the resignation of the president, very different time, very different period, very different allegations.

But you mentioned the fact that there are several concurrent crises going on here. As a business guy, if you met with all your players and you had all this noise going on around you, what would you be demanding of your people? How would you be handling it now?

TRUMP: Well, you have to look at them very differently.

Interestingly, while you had death involved in Benghazi, and gross incompetence probably at a least, but you had a lot of death involved, that one probably resonates the least. And AP was interesting, because a lot of people, like maybe you or maybe me, or I can just say that a lot of his most liberal supporters, I think, were most really concerned about what happened with AP. Now, the IRS to me is the worst one of the group, because you're really talking about something that just is not supposed to be happening.

So you have three interesting cases, very different, but I say this. The AP from the standpoint of reporters -- all of a sudden, I'm seeing people that were really protecting the president forever, they're really angry about the AP, much more so than the other two.

CAVUTO: No, you're right about that. The media certainly is.

We're just getting wind right now, Donald, a Treasury official is now quoted on the wires as saying that Danny Werfel -- he is again the guy placed in temporary charge of the IRS -- to report to the president in 30 days about progress on fixing these failures and that Treasury Secretary Lew has asked the incoming IRS head to do a thorough review as well.

Thirty days, what do you think of that?

TRUMP: Well, it's a very complex situation.

If it ever got up to the White House, then you're talking about a Nixonian type of situation. You're talking about big stuff. Now, I can't imagine that that happens, but there's always that possibility. People were really targeted. Now, if the White House targeted them, then you're talking about something that is very, very bad and very illegal.

CAVUTO: Yes, we don't know. We're not there yet.

TRUMP: No, you're not, but it's interesting.

CAVUTO: But I guess in terms of -- a lot of people look for that pound of flesh, fairly or not, Donald. They look for someone's got to go, someone mishandled this, whether it's a temporary agency head or a chief of a division. It doesn't look good, so the guy or the woman might not even be responsible, but has to go.

Is there something to that, or is the president right to slow down, see how these studies and investigations go, and hold off on firing people, because this isn't about making statements, this is about, to the White House's point, going after the truth?

TRUMP: I think he has to start firing immediately, and if he doesn't, this is going to get worse and worse. And I think he has got to get really prestigious people.

And they don't to have to be Democrats. They don't to have to be Republicans. They just have to be the best people, because you really have a situation that if you don't start chopping, chopping and chopping strong, it's going to be a problem.

Now, you have one other thing that is interesting, and that is ObamaCare. And you see what happened with who is now in charge of ObamaCare. And that's not the right person. And I will tell you this, and I have said it before. ObamaCare is turning out to be a catastrophe in terms of its complexity, in terms of business, in terms of a lot of things.

CAVUTO: And the IRS calling the shots on that, right.

TRUMP: And Obamacare is really a fourth element to this whole puzzle.

So, it's going to be very interesting.

No, I would say you have to start firing immediately and you have to start replacing with really talented people.

CAVUTO: Donald Trump, thank you very, very much.

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