Conservative targeting confirmed

Will Attorney General Eric Holder call for an investigation?


This is a RUSH transcript from "The O'Reilly Factor," June 26, 2014. This copy may not be in its final form and may be updated.

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O'REILLY: "FACTOR Follow-Up Segment" tonight.

It's now becoming clear the IRS was used for political purposes, targeting conservative groups and individuals. If you are following the story, you know it's reached critical mass. The IRS losing key emails, also allegedly targeting Republican Senator Charles Grassley.

And former IRS administrator involved, Lois Lerner, taking the Fifth and being held in contempt of congress. Obviously, special prosecutors should be appointed but Attorney General Eric Holder will not do that, at least not yet.

Joining us from Nashville, Tennessee, former federal prosecutor Alex Little. In the studio, former attorney general of the United States, Michael Mukasey.

So, let's start with Attorney General Holder, your assessment?

MICHAEL MUKASEY, FORMER ATTORNEY GENERAL OF THE UNITED STATES: Well, my assessment is that in this instance, a whole lot more ought to be done than is being done. I think that there ought to be a special prosecutor. I think that putting this case in the hands of a prosecutor who gave a maximum donation to the president's re-election campaign in 2012.

O'REILLY: That's the head of the IRS.

MUKASEY: Doesn't really inspire confidence.

O'REILLY: OK. So, Holder, why would he do it? Everybody, I think the majority of Americans agree with you, new special prosecutor with no ties to any political group should be appointed. Holder won't do it. He didn't do it on Fast and Furious. He didn't appoint a special prosecutor there.

Why won't he do it? Is he just trying to protect his very good friend, Barack Obama?

MUKASEY: Well, I don't read minds. But he has in the past and I think it was unfortunate locution, referred himself as the president's wing man. I don't think the attorney general ought to describe himself that way.

O'REILLY: It looks that way, unfortunately.

MUKASEY: He kind of -- you know, he plays into that.

O'REILLY: OK. Counselor Little, you know, America's watching tonight. Some are very cynical about the justice system because of Mr. Holder. You know, if we commit a crime, you, me, even the judge -- I mean, we're going to -- you know, it's going to be investigated.

But President Obama doesn't get investigated. And many, many people feel it's because Holder is protecting him. Are they wrong?

ALEX LITTLE, FORMER FEDERAL PROSECUTOR: Yes. I think they are. I don't think that's fair at all.

I mean, Holder has not had a history of protecting Democrats. If you look recently, he has indicted and convicted Jesse Jackson, Jr., Ray Nagin down in New Orleans, Kwame Kilpatrick, three Democratic politicians who have been prosecuted and convicted.

Here, a special prosecutor is incredibly rare. We expect all our prosecutors to be impartial. I know when Judge Mukasey was attorney general, he expected every one of his U.S. attorneys to act impartially. Most of them gave huge donations to the president at that time and we didn't question their impartiality. The reality --

O'REILLY: All right. I -- I think you made a good point on the three local politicians that were prosecuted buy the Justice Department. But, you seem to be discounting the close friendship between Mr. Holder and Mr. Obama, almost like John Mitchell and Richard Nixon.


O'REILLY: Almost exactly the same way.

But let me ask you this. There is no doubt now that the IRS, the most powerful internal agency in the country, used its power for political reasons. No doubt. And you don't think that rises to special prosecutor status?

LITTLE: I don't. Look who is in charge of the FBI right now. James Comey, who Judge Mukasey knows well, and incredibly well respected individual appointed by George W. Bush.


O'REILLY: But we don't even know if the FBI is looking at it. The FBI did buck the assignment (ph) on Fast and Furious, they didn't do anything: All right?


O'REILLY: We don't know that the FBI is looking at that, we don't know. Let me get to this.

Senator Ted Cruz today called for impeachment of Attorney General Holder if he does not appoint a special prosecutor. Do you think that's wise?

MUKASEY: No, I don't think it's wise because impeachment is a political act, and there isn't political support for convicting or for, that is for upholding.

O'REILLY: You don't think the Republicans in Congress would like to go after Holder?

MUKASEY: I think the Republicans in Congress would like to go after Holder. The question is, whether those charges would be sustained in the Senate. And the short answer to that is no. The long answer to that is hell no.

So, what's the point of bringing them in the first place?

O'REILLY: It's a symbolic point, to show the American people that the Republican Party is outraged by this lack of investigative prowess.

MUKASEY: You want to do something symbolic or carry a sign? You don't toy around with the Constitution of the United States that provides for impeachment unless you are serious about it.

O'REILLY: What is the answer, judge, we have a sitting attorney general who does not seem to be interested in the IRS situation or the Fast and Furious situation or others at the federal level.

MUKASEY: I think what you do is call people in for oversight hearings. You find out what's going on and why or what's not going on and why. If you are interested in impeaching somebody, you can start with the director of the IRS.

O'REILLY: All right. Last word to you, Mr. Little. I find it very surprising that you, because I know your background, you are a very vigilant prosecutor in your time, at the federal level, don't see how important this IRS thing is and how when you have all -- you know, thousands of key emails disappear, you have the central authority taking the Fifth, held in contempt of Congress.

And you don't it needed -- it needs outside set of eyes? I'm surprised.

LITTLE: Well, I have got more faith, I think, in the federal agents who are working the case. I've got more faith in the folks who are prosecuting it, may be prosecuting it you build good cases in secret. You build them quietly and if they get the evidence and collect the evidence, they're going to make a darn good case.

O'REILLY: All right. We got you on tape now. We'll check back with you in about a year and see if that happens.

Judge, thanks for your time.

LITTLE: All right

O'REILLY: To you, Little.

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