Will Eric Holder survive another scandal?

This is a rush transcript from "Hannity," May 29, 2013. This copy may not be in its final form and may be updated.

SEAN HANNITY, HOST: Tonight, the investigation continues into whether or not the nation's top law enforcement officer lied under oath while testifying before members of Congress. Now, the chairman of the House Judiciary Committee Bob Goodlatte has sent a scathing letter to Eric Holder expressing, quote, "great concern" over the AG's recent testimony.

A four-page document calls for Holder to answer a series of questions regarding his involvement in the Justice Department probe of Fox News correspondent James Rosen. Now remember, it was exactly two weeks ago when the Attorney General explicitly denied having any knowledge of any efforts to secretly spy on reporters.

Now, what you are about to see is the portion of Holder's testimony that is now very much under the microscope of Congressional investigators.


ERIC HOLDER, U.S. ATTORNEY GENERAL: With regard to the potential prosecution of the press for the disclosure of material, that is not something that I have ever been involved in, heard of or would think would be a wise policy.


HANNITY: All right. Not only was he involved in spying on Fox News, he clearly thought it was a wise policy because he, Eric Holder, he was the guy who signed the subpoena authorizing it. Now, that means what you just witnessed was the United States attorney general lying while under oath before Congress.

Now later tonight, two members of the House Judiciary Committee who attended the hearing in question will join me live with the very latest on their investigation into this very serious matter.

But first, earlier today, White House press secretary Jay Carney was asked about Eric Holder's misleading comments. And let's just say, well, things got a bit heated. Let's take a look.


ED HENRY, FOX NEWS SENIOR WHITE HOUSE CORRESPONDENT: We know he was involved. That's the question. Was he not telling the truth on that point? He was involved in it.


HENRY: He signed off on a search warrant.

You're not involved after signing a search warrant?

CARNEY: I would refer you to the Justice Department. You guys are completing -- you know, the subpoena with prosecution and I think that it is -- again, I would refer you to what the attorney general said.

MAJOR GARRETT, CBS NEWS CHIEF WHITE HOUSE CORRESPONDENT: It is a technical accuracy you are holding on to?

CARNEY: I'm not. I'm saying that based on what I've seen in published reports and what the attorney general said, I don't see the conflict.


HANNITY: All right. Jay Carney probably did not see the conflict the last time the attorney general was also caught lying under oath either. Now, do you remember this exchange between Holder and House Oversight Committee Chairman Darrell Issa? This is back in 2011.


REP. DARRELL ISSA, R-CALIF.: When did you first know about the program officially I believe called Fast and Furious to the best of your knowledge what date?

HOLDER: I'm not sure of the exact date but I probably heard about Fast and Furious for the first time over the last few weeks.


HANNITY: All right. That, too, was later discovered to have been a lie. Now, why? Because Justice Department documents prove that Eric Holder was personally briefed about operation Fast and Furious as early as July 5th 2010.

Now the questions that remains is, will the embattled attorney general be able to survive this latest scandal or his time as America's top cop about to come to an end?

Joining me now with reaction, Fox News contributor Michelle Malkin and Fox News political analyst Juan Williams.

Juan, when he said this is not something I have ever been involved in heard of or would ever think would be a wise policy, and then he signs the subpoena, is that a lie?

JUAN WILLIAMS, FOX NEWS POLITICAL ANALYST: He didn't sign the subpoena. He signed an affidavit that was sent to a judge who signed the subpoena.

HANNITY: I stand corrected. You get my point?

WILLIAMS: No, no, I got your point. I understood you. But I think the larger point is this -- that when Eric Holder was testifying, he was testifying about prosecuting reporters for publishing information that was regarded as a national security leak, and he was not involved with that. He was involved in -- and I think wrongly so, let me just be clear, wrongly so -- in saying that yes, James Rosen a lifelong reporter for a legitimate news organization could be considered potentially a co-conspirator with the man who was breaking the law by giving away this information from the State Department.

HANNITY: If that is true and you are saying he was not misleading Congress which would be a violation of law, then the only other option would be that he intended to prosecute Rosen. And if you did that -- hang on a second -- that would mean that he would have lied to the judge to get the sweeping search warrant.


HANNITY: Yes, yes, yes.

WILLIAMS: He listed Rosen as a coconspirator, potentially someone who aided and abetted --

HANNITY: That is a crime.

WILLIAMS: But that's -- he did that so that he could try to determine whether or not Rosen, who would use the aliases and secret e-mail accounts, was in fact up to anything. That's I think what's going on here, is the prosecutors were in a bubble and that is why they made this terrible mistake.

HANNITY: Well, I think it is beyond a terrible mistake. I want to get Michelle Malkin's take on this. Michelle?

MICHELLE MALKIN, FOX NEWS CONTRIBUTOR: Of course, of course it is. It is chilling, it's disturbing and, of course, Eric Holder just lied there. I think I am willing to pay for a chiropractor for Juan because the water buckets that he is carrying for the White House are very heavy. I mean, I can't even get worked up enough to have my blood pressure rise, I can't be mad at you any more, Juan.

WILLIAMS: Michelle, I'm disappointed.

MALKIN: I feel pity.

Look, I will tell you what disappoints me that anybody would be surprised or shocked at the outcome of this thoroughly corrupt Justice Department led by Eric Holder who we have known for decades has a history of obstruction, a history of politicizing the rule of law and subverting equal treatment under the law and our constitution to his political ends. We knew it during the nomination process.

I have always been livid that there were 19 Senate Republicans who ignored the long sordid history of corruptocracy that Eric Holder was responsible for when he was a Clinton Justice Department official, and Sean has talked numerous times. We have who have been watching, who have been doing our jobs as watch dogs, because guess what, you don't have to be a credentialed mainstream journalist to do journalism, and whether it was the Rich pardon, whether it was FLAN (ph), all of the sordid conduct of this attorney general during the New Black Panther Party voting rights subversion case through Fast and Furious and now with the handling of these dumpster-diving episodes in campaigns against James Rosen and the Associated Press.

How can you possibly defend it, Juan? How?

WILLIAMS: Michelle, let me just say you have gone so far afield here. It is clear, look, you are building a conspiracy theory. You know, I'm just going to say go for it --

MALKIN: I'm giving you facts.

WILLIAMS: -- if you think that there is some basis for it. There is no fact here. What we saw from Sean was facts. Sean says --

MALKIN: Dispute one fact I gave you.

WILLIAMS: Sean says, this guy lied to the Congress. And I think Sean has a point. And I say Sean, I don't think he did and here is why. But I'm just saying to you, I understand given what you just said that this is about politics. This is not about anything to do with Eric Holder violating James Rosen's rights.

HANNITY: Let me ask you another question because we are running out of time.

WILLIAMS: It's about a political agenda, a political ideological demonization of Holder, you want to get Holder.

HANNITY: Juan, let me ask you this. He went and testified before the House Judiciary Committee about Fast and Furious back in 2011 -- not that long ago -- and he said, I just found out about it over the past few weeks. And then we found the documents that showed that he knew at least 10 months before the hearing. It proved that he was not telling the truth and that he had to go back after he was caught and say that he gave inaccurate information.

Now, why -- go ahead.

WILLIAMS: All that came out, Sean, was that there was some letter or something that was sent to him pro forma that you know, you could say did he read it or didn't he read it, whatever. OK.


HANNITY: Documents. Affidavits. Documents.

WILLIAMS: It's possible that what you are saying is true, but it's not as if it was high-profile at that point.


MALKIN: Eric Holder is never responsible for anything with his name on it.

HANNITY: All right. Michelle.

MALKIN: It is rancid. The stench from the top of the heap of the White House and the Justice Department is so toxic that 1600 Pennsylvania Avenue and the Justice Department should be declared superfund toxic cleanup sites. And the fact that you can't smell it, Juan, it indicates to me that you need an olfactory specialist because all of America can smell it now.

WILLIAMS: Well, I worry about your blood pressure at this point. So, calm down. Because I think if there was a scandal of that magnitude, it wouldn't be just you.

MALKIN: Wake up. Wake up. Oh it's just me, that's right. I smell it.

HANNITY: I would argue. Things are getting pretty tough right now for the attorney general. I'm not sure he survives and I think misleading Congress is a big deal.

We're watching the days to come. He was not honest on two occasions and it's very clear that he misled the Congress. I think there's going to be a lot of ramifications out of this. Thanks, guys.

WILLIAMS: You're welcome.

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