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Kelly File

Media excitement over Warren endorsement justified?; Mitt Romney confirms he will not vote for Donald Trump

This is a rush transcript from "The Kelly File," June 10, 2016. This copy may not be in its final form and may be updated.

TRISH REGAN, FOX NEWS ANCHOR:  Breaking tonight, the attacks in the 2016 race for the White House ramp up as Democrats unite around Hillary Clinton in an effort to take down Republican Donald Trump.  

Welcome, everyone, to "The Kelly File." I'm Trish Regan in for Megyn Kelly.  Right now Donald Trump is holding a rally in Richmond, Virginia.  It comes after 24 hours of fresh attacks against him, coming from the White House, coming from Congress, from the Clinton campaign, and even from some on the right.  Earlier today, Mrs. Clinton herself used this speech to Planned Parenthood to repeatedly knock her Republican rival with a common democratic refrain. Watch it.  

(BEGIN VIDEO CLIP)

HILLARY CLINTON, D-PRESUMPTIVE PRESIDENTIAL NOMINEE:  When Donald Trump says, "Let's make America great again," that is code for let's take America backward.  Back to a time when opportunity and dignity were reserved for some, not all.  Back to the days when abortion was illegal, women had far fewer options, and life for too many women and girls was limited.  Well, Donald, those days are over.  

(CHEERS AND APPLAUSE)

(END VIDEO CLIP)

REGAN:  Now notably, Mrs. Clinton is getting help from Massachusetts Senator Elizabeth Warren who has made no secret of her disdain for Donald Trump.  Today the two women even met at Mrs. Clinton's home.  Amid reports that Warren may be on Clinton's short list for vice president, a prospect Trump says he welcomes as he unleashes his own criticisms of Clinton.   

(BEGIN VIDEO CLIP)

DONALD TRUMP, R-PRESUMPTIVE PRESIDENTIAL NOMINEE:  Now, Hillary Clinton, or, as I call her, crooked Hillary Clinton.   

(CHEERS AND APPLAUSE)

-- as crooked as they come.  Hillary Clinton has jeopardized.  Totally jeopardized national security by putting her e-mails on a private server, all to hide her corrupt dealings.  I mean, it's criminal investigation.  

REGAN:  Doug McKelway reports tonight for us from Richmond, Virginia where Donald Trump has been holding a rally.  

DOUG MCKELWAY, FOX NEWS CORRESPONDENT:  That's right, Trish.  And this rally interestingly enough is much more sparsely attended than what we've been used to seeing at Donald Trump rallies.  The chief of police here in Richmond just yesterday had a press conference which might explain that.  He said that he had received upwards of 50 e-mails from people who procured tickets to this rally and who wanted to come but who were afraid of potential violence.  And that may have kept the crowd down here.  There are a couple of hundred protesters here.  

But so far they have been pretty well behaved.  If you can pan over it right now.  I think that may be change.  I just saw a group of police officers running over there, they're running into the crowd of protesters. We'll see what will happen there.  We'll keep our eyes on that.  But inside the rally right now, Donald Trump is unleashing a torrent of attacks against Clinton and her new campaign companion Elizabeth Warren who may initially derisively referred to as an Indian and later Pocahontas, that's a reference to her alleged Indian heritage which has not been proven.  With a far left Warren pulling Clinton, even further to the Left as Bernie Sanders has done, Trump sees a target rich environment and the chance to pull traditional Democratic constituencies closer to him.   

(BEGIN VIDEO CLIP)

TRUMP:  Her education policies, her economic policies, her immigration policies and her trade policies will plunge our poor African-American Hispanic communities into turmoil and even worse, despair.  Believe me, you look at what's going on.   

(END VIDEO CLIP)

MCKELWAY:  And if Clinton were to choose Warren as her running mate, you can imagine the double barreled attack that those two would mount against Trump.  

(BEGIN VIDEO CLIP)

CLINTON:  This is a man who has called women pigs, dogs, and disgusting animals.  Kind of hard to imagine counting on him to respect our fundamental rights.  

(END VIDEO CLIP)

MCKELWAY:  All right.  I'm just talking about this violence here again. You can see this line of police officers coming back this way.  They have left these protesters very clear about what they intend to do in no one certain terms.  If anybody breaks the law they are telling them you will be arrested.  This is a far cry of what happened in San Jose last week.  What does breaking the law means?  

It also means even stepping on to the private property of the Richmond arena.  One step on to this property and you will be arrested.  Much more proactive than what we saw in San Jose.  The crowd still inside has yet to leave the arena.  That's when most of the violence has happened.  So, we'll keep our eyes on it, Trish.  And let you know what happens.  

REGAN:  Thank you so much, Doug.   

You know, as the Democrats hit Donald Trump and rally around Hillary Clinton, some Republican leaders have found it difficult getting behind the New York businessman.  Publicly urging Mr. Trump to tone down his rhetoric and pick a running mate who can make up for his lack of political expertise.  

Rich Lowry is here.  He is the editor of National Review and a Fox News contributor.  Alan Colmes is host of "The Alan Colmes Show."  And Lisa Boothe is president of High Noon Strategies and a Republican strategist. Lisa, I'm going to start with you.

LISA BOOTHE, HIGH NOON STRATEGIES PRESIDENT:  Hi, Trish.

REGAN:  Is this really what they should be doing right now?  Should they be out there publicly criticizing him if they really want to win?

BOOTHE:  Well, absolutely.  I mean, what they need to get behind Donald Trump if Republicans want to win the White House.  The alternative is Hillary Clinton if that does not happen.  And look, there are a couple of things going on here right now.  We've already seen Senator Mitch McConnell, Speaker Paul Ryan endorse Donald Trump.  So, clearly Republicans are lining up behind him.  But they also have to think about the House and the Senate.  You have got a lot of vulnerable members of Congress, for instance Senator Kurt came out against Donald Trump because he is facing a tough race in a more Democratic state.  So, you're seeing both --  

REGAN:  Okay.  So, they are trying to walk a tightrope essentially.  

(CROSSTALK)

We're talking about cover here --  

BOOTHE:  Exactly.

REGAN:  -- which it seems to me if you are in the position of providing that cover while simultaneously very publicly criticizing the guy who is running at the top of your ticket for president -- I mean, you can't really have your cake and eat it too in this environment.  Aren't they causing him more harm?

RICH LOWRY, NATIONAL REVIEW EDITOR:  Well, the problem is that they are asking him really to clear a very low bar and not say indefensible things. And part of what's going on here is a signaling to Donald Trump, please, we want to be with you, we have endorsed you.  Make it a little bit easier for
us and the rest of the party by not saying things --  

(CROSSTALK)

REGAN:  Exactly that behind closed doors.  You know, I hear you.  And I agree.  You know, it's kind of a low bar, police, you know, say things that, you know, others won't criticize as racist.  However, however, why don't they call him up on the phone and have a private conversation?  Why don't they get in a room or all show up at Trump Tower and say, okay, Donald Trump we need you to behave accordingly?  Instead they go out in the media and they publicly attack him.  And doesn't that hurt their chances at the White House.   

LOWRY:  Well, they have had those private conversations, one.  Two, when you are a figure like Paul Ryan, yes you are a party officials but you also have your own view about what the party's ideals are and what the nation's ideals are.  And you are not going to muffle criticism on something that is this high-profile and you think -- that you think is this wrong.   

REGAN:  Okay.  So, I think that my point is sort of this is good news for Hillary Clinton, right?  

ALAN COLMES, HOST, "THE ALAN COLMES SHOW":  Let me just sit back and watch it.  You know, this is good.  

REGAN:  Yes.  This is good for you.

COLMES:  You know, Paul Ryan calling it textbook racism but I'm still going to support him.  He is still doing racist stuff.  Just tonight he is calling her Pocahontas.  Here's a guy who wrote a book where he said he was -- family is from Sweden when actually they are from Germany.  Maybe we should call him Soven (ph).  I mean --  

(TALKING OVER EACH OTHER)

REGAN:  Hang on.  We'll save that for another day.  But in other words, the point you are making is that it is helping Hillary Clinton.  Why are the Republicans helping Hillary Clinton like that?

BOOTHE:  And they shouldn't be.  But I think there is an important point the make out here.  Look, Democrats are all up in arms by a statement but you seem not to care about the fact that for the first time in our nation's history, major party candidate is facing a federal investigation by the FBI.   

COLMES:  She is not the subject of investigation.  That's not true.  

BOOTHE:  So, you should be a little bit concerned by that.  

COLMES:  Hold on.  He's not the subject of an investigation.  That is not true.

BOOTHE:  Hold on, Alan.  You spoke so let me speak.  Alan.

(TALKING OVER EACH OTHER)

REGAN:  The FBI, they are investigating him.  

BOOTHE:  She probably will meet with him.  But she has to deal with the State Department either who also said that she broke protocol.  But to a broader point, the Democratic Party is also split right now.  Bernie sanders will not get out of the race.  Ted Cruz and John Kasich at least dropped out of the race when they realized it was not viable for them to get through.  And we're also seeing on the state level, grassroots level, Democrats are not stepping aside and supporting Bernie Sanders.   

REGAN:  I actually -- in some ways, you have got to hands it to the Democrats because Elizabeth Warren, it took her a while but she is finally out there supporting Hillary Clinton.  President Obama officially endorsing her despite the whole FBI situation.  And Bernie, I'm supposing Bernie will eventually come around.  Because he will see the handwriting on the wall.  And at the same time, you have got Mitch McConnell and you have got Paul Ryan out there saying what they are saying.   

LOWRY:  Trish, this is a Fox poll just a day or two ago.  The attributes that Donald trump leads on versus Hillary Clinton can bring change to Washington.  So this election will be about what that change is.  Can Hillary define it as being dangerous and reckless or can Trump define it as being a welcome break from a corrupt status quo?  Trump for his own interests cannot constantly give the Democrats more ammunition to say he is dangerous and reckless.  Mitch McConnell and Paul Ryan, you may not like it, but they are actually giving him good advice for his own.  

REGAN:  Yes.  I just wonder why they are not doing this in the less public way.   

COLMES:  Well, they probably are.  I'm sure that they are having those conversations.  Paul Ryan said he has spoken to Donald Trump and had that conversation.  But everybody that I have heard speak about this says, Donald Trump doesn't listen to anybody.  You know, he has got the best brain, uses the best words, he is his own adviser on foreign affairs though he knows nothing about it.  So, the question is whether he will listen to those who probable have his best interests and the interests of her party at heart.   

REGAN:  And it's important Lisa for him to do that right now.  I mean, you saw the latest Fox News poll, he is trailing Hillary Clinton now after having been ahead.  And one has to wonder if that is just the effect of the last week and a half or so as all of this stuff has bubbled up.  

BOOTHE:  And it probably is.  And I don't discount the fact, I think it was a bad move politically, it was a bad move just to be even saying that in the first place.  And we have seen it with the FOX News poll taking a six point swing downwards for Donald Trump.  He is still within the margin of error.  Just like you, (INAUDIBLE) also, morning -- poll that show the majority of the American disapprove of this statements that he made.  So, yes, you know, those were a problem.  But it also goes back to the political cover and when you see these people stepping forward and saying this.  They are allowing for themselves to have a little bit of a wiggle room.   

REGAN:  That's what they are trying to do.   

LOWRY:  This should not have been a bad week or bad two weeks, you had the IG report undermining everything Hillary said about the e-mail.  

BOOTHE:  I agree.

LOWRY:  Got a horrible jobs report.

COLMES:  I undermined that.

LOWRY:  And I have a report today that she basically sold a position on its advisory board.  

REGAN:  He probably just needs to stick to the economy and stick to the National Security and keep going after Hillary and he would be in better shape.  Good to see you, all you guys.  Ultimately he is.  

All right.  The media's obsession with Hillary's campaign may actually be growing now with Senator Elizabeth Warren endorsing her last night. Warren's support is something that some Democrats have been dreaming of for months and some members of the media could barely contain their excitement of this move.  You got to watch it.

(BEGIN VIDEO CLIP)

RACHEL MADDOW, MSNBC HOST, "THE RACHEL MADDOW SHOW":  Another force outside the Obama/Biden White House that frankly has a hell of a megaphone and a hell of an audience and a ton of influence right now.  And that person is Massachusetts Senator Elizabeth Warren.   

UNIDENTIFIED MALE:  This was a picture of a Democratic Party firing on all cylinders here with Elizabeth Warren at the tip of the spear.   

UNIDENTIFIED FEMALE:  Senator Warren prizes being an independent voice for all people.  She is a fighter against bullies and has been for many years. Not just Donald Trump.   

(END VIDEO CLIP)

REGAN:  Howie Kurtz is host of media news, "MediaBuzz" on Fox News Channel.  Howie, I'm pretty excited.  I guess they were waiting for a long time for this to happen.  Is this excitement justified?

HOWIE KURTZ, FOX NEWS HOST, "MEDIABUZZ":  Well, many in the media practically begged Elizabeth Warren to run for president last year.  Now we are seeing the kind of throw out the leg for the prospect that she might maybe, I am not so sure emerge as Hillary Clinton's VP.  And you could see the appeal of covering a snarling attack dog who loves to lacerate Trump as a small minded money grubber and all of that sort of thing.  I have to say with Elizabeth Warren giving an anti-Trump speech that is covered live on MSNBC and CNN, than doing the endorsement of Hillary Clinton, on "The Rachel Maddow Show" and then going as you mentioned to Hillary Clinton's home here in Washington this morning, she is doing a pretty good imitation of campaigning for the job.   

REGAN:  That said, in all fairness to some of these media organizations out there, you know, there is a reality of this business which is in part, you know, the most aggressive sound bites tend to make air.  And you can rest assured that Elizabeth Warren is going to come forward with some pretty aggressive sound bites.  So, you know, she captures legitimately captures some of the media's attention.  It's just questionable of course as to why they need to be so excited in the endorsement.   

KURTZ:  Well, she would absolutely be fun to cover.  And, you know, I can go over the pros and cons.  He wants two women on the ticket.  She doesn't bring a stake because Hillary, you know, wins Massachusetts so it's over for her.  They don't know each other very well.  But here's the main thing that I think is being overlooked by most but certainly not all the commentators.  Hillary Clinton is running as the candidate of government experience.  

She undercuts that if she picks a first term senator with no experience in foreign policy.  Even former Democratic Governor of Pennsylvania Ed Rendell said, he doesn't think Elizabeth Warren is ready to be commander-in-chief. And so, while there might be some swooning now, if she actually got chosen and I'm not -- that she will, the debate would very quickly turn to you have a 69-year-old nominee, is this first term lawmaker really prepared to be a heartbeat away from the  presidency.   

REGAN:  Quickly before I'll let you go.  As you know, the President made an appearance on yet again another nighttime show, Jimmy Fallon this time. And, you know, he made the point, Howie, that the presidency is something that's not a reality show.  That you need to take it very seriously.  I think we have a clip we can show you.   

(BEGIN VIDEO CLIP)

OBAMA:  The main role I'm going to be playing in this process is to remind the American people that this is a serious job.  You know, this is not reality TV.  

(END VIDEO CLIP)

REGAN:  Not reality TV.  Okay, this is coming from a guy who by the way has done his share of reality TV or entertainment TV.  I mean, shows like between two ferns and all the nighttime shows, entertainment shows.  I mean, this guy is actually -- our president -- very good at the whole reality TV star thing.  

KURTZ:  What Barack Obama was obviously trying to say is that you can't be a reality TV guy as a candidate but once you are president you can slow jam the news, you can sit down with Glozell Green, the woman who took the bath in fruit loops.  And yes, he is very good at it. So, let me be clear.  You can sit down with all kinds of lackey hosts once you have already got the job.  Obviously he is trying to take a swipe at Donald Trump and "The Apprentice" but maybe he needs to find a different metaphor.  

REGAN:  I'm betting that he might get his own show when this is all said and done, the President that is, he would be awfully good at it.  I got to say.   

KURTZ:  Might be getting a few offers in a few months.   

(LAUGHTER)

REGAN:  Good to see you, Howie.

KURTZ:  Thank you, Trish.

REGAN:  All right.  Breaking tonight, everyone, major headlines out of the Annual Romney Summit.  Former Republican nominee for president Mitt Romney announcing he will not vote for Donald Trump come November just as his guests, Reince Priebus and Speaker Ryan double down on their support for Trump.  We have Governor Mike Huckabee here on that.   

Plus, new evidence of possible political favors during Hillary Clinton's tenure at the State Department as we learn more about a major donor to the Clinton Foundation.  A donor who you see here.  Is this another case of pay for play involving the Clintons?

And the bombshell report claiming the presumptive Democratic nominee is benefitting from manipulated Google searches.  We're on it.   

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE:  The intention is clear, Google is burying potential searches for terms that could have hurt Hillary Clinton in primary searches over the past several months by manipulating recommendations on their site.

(END VIDEO CLIP)

REGAN:  Breaking tonight, former Republican nominee Mitt Romney making headlines at his annual summit reaffirming he will not vote for presumptive Republican nominee Donald Trump or Hillary Clinton this November.  But he did suggest he might be open to the libertarian ticket.  Right now, Romney's big shindig is underway in Utah.  And the stakes have never been higher.  He has a power packed guest list out there.  RNC Chair Reince Priebus, Speaker Paul Ryan.  They are in Utah raising money for down ballot Republican candidates but officials on the ground say Romney's summit will not be a fertile fund-raising ground for Donald Trump as Romney's very public objections to Mr. Trump intensify.   

(BEGIN VIDEO CLIP)

MITT ROMNEY, R-2012 PRESIDENTIAL NOMINEE:  I don't want to see trickle down racism.  I don't want to see a president of the United States saying things which change the character of the generations of Americans that are following.  Presidents have an impact on the nature of our nature.  And trickle down racism, trickle down bigotry, and trickle down misogyny, all these extraordinarily dangerous to the heart and character of America.   

(END VIDEO CLIP)

REGAN:  We have Governor Mike Huckabee here with us on all of that.  But first we go to Leland Vittert.  He is live in Park City Utah with the details.  Leland?  

LELAND VITTERT, FOX NEWS CORRESPONDENT:  Good evening, Trish.  You might imagine that Mitt Romney after saying all of those things would offer some other idea.  The only idea he said was, what he knows he won't do, saying he will not be the guy to try and take on Donald Trump or be a spoiler, in his words.  This meeting here is not only top staff but the who's who of donors from the 2012 presidential campaign.  And you might think this magnificent vista here would soften everyone's feelings.  Well, it hasn't.  

Few others, among with few exceptions, folks here are upset, almost resigned to the fact that Donald Trump could  become the president of the United States and they are angry about it.  They are worried about it. Some of the speakers here though are folks who have been behind Donald Trump.  Take for example.  Paul Ryan, Speaker of the House, who has endorsed Donald Trump.  Well, he wants to come here and talk about the GOP's anti-poverty agenda that he has unveiled in the House.  

Folks here want to talk to him about why he has gotten behind Trump and if he can try and control Trump.  RNC Chair Reince Priebus also coming here. He wants to talk about party unity.  Folks here want to talk about the dysfunction in the RNC that they see is what they've rise to Donald Trump and allowed him to become the presumptive nominee.  Now the big question here, the $1 million question -- you might even say the one, $1 billion question among these big donor is all  right most everyone here agrees that they won't want Trump to be the president but is anyone willing to actually do something about it rather than just talk about it?  Here is Romney's national finance chair from his 2012 campaign.  

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE:  There is an appetite for plan B?  Is there money for plan B?   

SPENCER ZWICK, FINANCE CHAIR, ROMNEY 2012:  Well, I think there would certainly be money for plan B, there would be an appetite for many people for a plan B.  But I don't think there is an option for a plan B.  You know, the process is -- and Donald Trump has gone through the process.  He will be the Republican nominee.  There is nobody that I have talked to that's planning a third party run.  

(END VIDEO CLIP)

VITTERT:  Now folks here are really pushing back on the concept that this is a meeting of the Never Trump.  So, there is some kind of plan being hatched here.  But it is very clear that those who are at the center of the 2012 presidential campaign are trying to figure out a way to become relevant once again Trish in 2016.  

REGAN:  Leland, thanks so much.   

All right.  Joining me now, former two time Republican presidential candidate and a man who has spoken at Governor Romney's summit before, Governor Mike Huckabee.  Governor, good to see you.   

MIKE HUCKABEE, R-FORMER PRESIDENTIAL CANDIDATE:  Thanks, Trish.  Great to be here tonight.   

REGAN:  Do you think this conference is doing more harm than good when it comes to actually being able to beat Hillary Clinton?

HUCKABEE:  I think these guys are spiraling into utter irrelevance.  I mean the fact that they are out there trying to figure out how can they stop a person who has over almost 3.5 million more votes at this point than Mitt Romney had during the entire nomination process?  And what they don't seem to yetfigure out, yes, Trump is not their guy.  But guess what, they weren't the people's guy.  And people are sick of the policies from these very Republicans from the establishment and from the elite world whose policies on immigration and on trade and on the economy and on National Security have created a complete disaster in the Republican brand where people don't trust it.  

And a lot of people have taken a gut punch in their personal economy, lost their jobs, lost their homes in foreclosure.  And Mitt Romney, who I don't understand what he's doing.  I like Mitt but he is trying to divide the party at a time when we need to unite.  And Trish, what doesn't make sense is that, if we want to talk about things a candidate said, could we go back and dig up about the 47 percent?  I mean how many times do we need to be reminded that candidates make mistakes.  Or that even when they don't, they say their mind.  I just think that this is an absurd way for Republicans so-called leaders to act.   

REGAN:  They so desperately want to be able to keep the House and the Senate.  But you know, I just wonder, Governor, if by criticizing Donald Trump so publicly and saying, look, you know, he is this, he is that, is they're running the risk of actually alienating all of Donald Trump's supporters and therefore pretty much guaranteeing themselves an inability to secure the House and Senate.  

HUCKABEE:  I think they are hurting the prospects for getting the House and Senate.  Again, they seem to forget that House and Senate members have a lower approval rating than cockroaches right now.  I want you to think about that.  And for us to say, oh, well we want to keep the House and Senate, well, then do something that the people want you to do.  Stop illegal immigration.  Stop these trade deals that are taking jobs from Americans.  

Build an economy that works for the people at the bottom, not just the ones at the top.  I mean, if they really are serious about keeping the House and Senate, then show us that you have some leadership.  But what they did, they extended the debt.  They paid for ObamaCare.  They continue to fund Planned Parenthood.  They approved the Iranian deal.  They did everything Republicans hate and they don't understand why we are mad at them.   

REGAN:  Governor, let me ask you.  You think about all the rhetoric coming from Mitt Romney right now.  If he is so convinced that Trump is not the answer, why isn't he himself willing to run?

HUCKABEE:  Good question.  I mean, I think that's it.  If you don't like the product that's on the shelf, say, let me put my product out there.  Look, I did that.  I ran.  I was rejected.  Sixteen of us were told, no thank you.  I accept that.  I'm not sitting around being bitter and saying gee, I don't like Donald Trump, he wasn't my first choice.  Trish, he wasn't my first choice.  I was my first choice.   

REGAN:  Of course you were, as you should be.   

HUCKABEE:  But the people didn't choose me.  So here's the deal, get behind him.  We're Republicans.  We don't want Hillary Clinton.  It's that simple.   

REGAN:  Before you go, let me ask you, you are from Arkansas.  You know the Clintons well down there in Arkansas.

HUCKABEE:  Yes.   

REGAN:  What's your advice to Donald Trump at this point in terms of how to beat her?

HUCKABEE:  Be prepared to be hit hard, hit hard back.  Keep her had off balance which she is not the same politician that her husband is.  She doesn't have that kind of nimble ability to take the pressure and blow it off and just keep going.  So I think he will have, frankly, the ideal kind of campaign going against Hillary.  But if anybody thinks this is going to be a snoozer, they have no idea what the next five months are going to be like.  Get a ticket, get a close seat and pop some corn.   

REGAN:  Governor Huckabee, we are looking forward to it.  Thank you so much.   

HUCKABEE:  Thanks, Trish.   

REGAN:  Okay.  Coming up tonight, a new report on possible political favors during Hillary Clinton's time at the State Department.  We are now learning more about a major donor to the Clinton Foundation seen here who was appointed to a sensitive government post despite lacking any relevant credentials.   

(COMMERCIAL BREAK)

REGAN: A bombshell report today suggest a major Clinton donor who gave as much as $250,000 to the Clinton foundation was put on to a sensitive government advisory board during Clinton's time at the State Department even though he had no known expertise in the area.

Raj Fernando was the commodities broker with no known connections to the national security world -- despite lacking even the most basic of qualifications, Clinton's allies made sure he was appointed to a State Department Board that advises the country's top figures on American nuclear strategies, a position that also granted him access to the most top secret information.

Back in 2011, ABC News started asking some questions about Mr. Fernando's appointment and some newly released internal emails reveal that the State Department spent two straight days stalling before Fernando resigned just two days later. And when ABC News approached him at the Democratic convention the following year, Fernando not only clammed up, he threatened them with arrest, watch.

UNIDENTIFIED MALE: ABC News, yes -- this is Zach who talk here. How did you get appointed for that board? Can you talk about that?

RAJ FERNANDO, APPOINTED STATE DEPARTMENT ADVISORY BOARD: How did you know my name? I'm curious.

UNIDENTIFIED MALE: Yes, this is a private property. You will be arrested.

UNIDENTIFIED MALE: I'll be arrested for asking questions of this man?

REGAN: Here's what it all means for Hillary Clinton's campaign, Ben Domenech, the publisher of the Federalist and Alan Colmes is back with us. Ben, is this an example of pay for play? He donates and then all of a sudden gets his great appointment?

BEN DOMENECH, THE PUBLISHER OF THE FEDERALIST: You know, this is an -- a wonderful example of how the Clinton's have been coin operated for so much of their political careers. And I think this is a perfect example in the sense that it has to deal with a very high level security -- security focused conversations that deal with top secret information.

And this isn't just another example of how the Clinton's use the foundation in this way, to welcome in donors and to put them into positions where they could influence American policy. This is exactly the sort of thing that we've seen them do over the course of their careers and so I don't think anybody should be surprised if something...

REGAN: Alan, this is not good for her though. I mean you look at her ratings when it comes to trustworthiness, this is the area that she is most cited as being lacking in. And now something like this just one more to add to the big pile?

COLMES: This is nothing burger. This is an attempt by citizens united that's been vehemently anti-Clinton group for years and years and years who try to get -- they got this information through the freedom of information act. These emails -- it's a story about someone who was a donor, just like donors often get to be ambassadors. They get ambassadorships...

(CROSSTALK)

REGAN: Well, this is different, right? I mean because this particular board that he was put on is exposed to the most top secret information...

COLMES: He was alleged -- he was supposed -- this guy was allegedly reported to be a cyber security expert. He had -- he had experience in...

REGAN: He's a commodity broker, common on. He's trading down on the floors of Chicago in the pits.

COLMES: He was a cyber security expert and also understood international currency.

DOMENECH: Alan, the fact that he resigned within two days after this...

(CROSSTALK)

COLMES: ...well, the first one after that and I don't know why he resigned. But, you know, pay for play happens all the time. It's happens with ambassadorship. It happens with both parties...

REGAN: It doesn't make it right.

COLMES: And there are those who will try to make this into another Clinton scandal...

REGAN: But he isn't this, what Donald Trump is trying to fight - isn't this what he is resonating on, the fact that there's so much crony capitalism...

COLMES: If you...

REGAN: ...or in this case, you know, you scratch my back I'll scratch yours.

COLMES: You want to talk about scandal I think Donald Trump is something we should really be focused on whether its Trump university...

REGAN: No, no.  We're sticking right now to this because, by the way, Donald Trump is coming out on Monday of course in New Hampshire with...

COLMES: Right.

REGAN: ...that big speech where he is supposedly going to expose some more of this kind of stuff...

COLMES: Oh, I'm sure he'll say very nice things about Hillary Clinton...

(Laughter)

DOMENECH: But the problem -- the problem -- the problem with this situation -- the problem with this situation though Alan is that this undercuts the main thing that Hillary Clinton is making the centerpiece of her campaign, that you can trust her as a leader more than Donald Trump, that she would be a more reliable commander-in-chief.

If you're putting people who have no background in security at all in positions where they're dealing with top secret information entirely because they're donors to your campaign...

COLMES: I'm not sure they know...

(CROSSTALK)

COLMES: ...security was reported by ABC and that story that it was a cyber security...

DOMENECH: Sharing emails particularly requested according to those emails...

(CROSSTALK)

COLMES: ...those securities are not enough.

REGAN: Let me jump to another thing that is continuing to haunt her and that's of course the Clinton Global Foundation and you know, you think about shortly after she became Secretary Of State she was approached by UBS, United Bank Of Switzerland, to try and sort of negotiate on behalf of UBS because the IRS was going after nearly 60,000 of their clients for tax evasion.

And so she worked with UBS and she worked with the IRS and she got a deal put together in which, you know, roughly 4,500 people round up being targeted by the IRS instead of the near 60,000. Oh, what do you know, the next year, her husband, biggest speaking engagement of the year $1.5 million he got from UBS.

So, once again, you know, I don't know if there was anything nefarious at play, but doesn't it at least...

(CROSSTALK)

COLMES: But you know what -- and here's the deal...

REGAN: ...cause you to ask the question of whether she understands...

COLMES: Let me respond to that.

REGAN: ...the sensitivity of this state.

COLMES: There are people who can't stand the Clinton's and will look to connect the dots anyway they can to make them look as these horrible human beings always pay for play and you just said...

REGAN: So, why are they giving them so many dots to connect down...

(Laughter)

COLMES: You don't know if there is anything nefarious there, so let's get all the facts out before we make those accusations.

REGAN: Well, it certainly doesn't look good. And you know what perception in many cases becomes reality...

COLMES: And you want to -- it's either perception...

REGAN: ...and if you are running...

COLMES: ...to people or you don't like...

REGAN: ...for office or...

COLMES: ...they're not going to agree with anything they do and...

REGAN: ...if you...

COLMES: ...they'll look for any of the dots that they can connect to go after them.

DOMENECH: And Alan there are so many dots.

(CROSSTALK)

REGAN: Alan, if you are running the State Department...

DOMENECH: There are so many - there are so many different...

REGAN: ...don't you say to Bill, "Hey, hon maybe ought to forego that speech for $1.5 million...

(Laughter)

REGAN: ...because I just kind of did a deal with them on behalf of the IRS and UBS together? I mean it seems like sort of a common sense.

(Laughter)

COLMES: If we can prove that there was actually a quid pro quo then let's come out with that information. Let's find the proof. Prove it.

REGAN: Alan, thank you. Good to see you then.

OK, new reaction tonight to a report from banking heavyweight Goldman Sachs is Obama Care forcing Americans who want to work full-time to work part-time?

The Kelly file pins down the facts on a huge part of President Obama's economic legacy, a fair and balanced debate next on whether Hillary Clinton would stay on the same path as the president.

(COMMERCIAL BREAK)

REGAN: New reaction tonight to a controversial report from banking heavyweight Goldman Sachs. The reviews of the research are mixed but many who have read that report say Obama Care is forcing Americans who want to work full-time to have to work part-time.

The Washington Examiner report on that research reads, and I quote, the evidence suggests that the Affordable Care Act has at least modestly elevated involuntary part-time employment. We have two men on opposite sides of this argument here tonight, Boris Epstein, he's a Trump supporter and Republican strategist and Chris Hahn, who is a Fox News contributor and former aide to Senator Chuck Schumer. Good to see both of you guys.

You know...

UNIDENTIFIED MALE: Good to see you.

REGAN: Boris, I got to tell you I talked to a lot of CEOs and a lot of investors and a lot of economist and every single one of them was predicting exactly this. They said, "You know what's going to happen when Obama care comes into effect? People are not going to hire as many employees or they're going to cut back on workers' hours." Is this the reality of Obama Care in which we now live?

BORIS EPSTEIN, TRUMP SUPPORTER AND REPUBLICAN STRATEGIST: Of course, it's a complete no brainer. Companies cannot afford to have full-time employees. Companies; therefore, have to force the employees to go part-time. And who does it hit the hardest, it hits those middle-sized businesses the hardest, hits small businesses the hardest.

And this is not the end. It's actually the beginning. Premiums are going -- going to be going up by 20, 30, 40%. Insurance companies are saying that they are losing money on Obama Care all over the country. Out of 50 states, in 41 states insurance companies, lost money on Obama Care.

REGAN: Yes.

(CROSSTALK)

EPSTEIN: ...bankrupts everywhere.

REGAN: You know, Chris, you're kind of laughing and you're shaking your head over there because I know you don't agree with any of this but I very briefly just want to explain the scenario. Imagine...

CHRIS HAHN, FOX NEWS CONTRIBUTOR AND FORMER AIDE TO SENATOR CHUCK SCHUMER: Yes.

REGAN: ...you are a small business owner you run a restaurant, right? And you -- you have maybe 45...

HAHN: Yes.

REGAN: ...employees, why would you go to 50 full-time employees if all of a sudden it's going to hit your bottom line because the government is now requiring you to provide health care?

HAHN: Well, businesses go to 50 employees because they need 50 employees. And they deal with the implications of that within the law but even if you believe this study, which I'm very dubious on, the study itself...

EPSTEIN: Why are you dubious on it?

HAHN: ...is only modest, maybe 200,000 jobs were lost in this. And remember this economy under President Obama has created 14 million jobs since the bottom of the recession. That's a lot of jobs...

REGAN: They're not for good jobs, Chris.

(CROSSTALK)

HAHN: I don't see why you would ever even think...

EPSTEIN: ...we haven't had 2-1/2 for said GDP growth in eight years, the worst recovery since World War II. We have the lowest participation in the work force...

HAHN: It was also the worst recession since 1929.

EPSTEIN: ...also we have more people...

(CROSSTALK)

REGAN: You know what, let me jump in for a minute, because Chris makes an important point that a lot of people on the left like to say. They are thinking the things were so bad; therefore, you know, how could it possibly be so good right now? And I tell you, it should be good. You know why, Chris? When things are that bad, any other time in history what you see is a big pop in those GDP numbers.

EPSTEIN: Right.

REGAN: In other words, the economy by comparison grows even more. And yet we haven't seen that. We're...

HAHN: You're comparing that to a standard...

REGAN: We're just moving along at an anemic growth record.

HAHN: It's a standard -- you're talking about a standard recession. This was a great recession brought on by horrible.

EPSTEIN: No, what about the...

(CROSSTALK)

EPSTEIN: ...after World War II, there was much better GDP growth.

HAHN: Hold on, Boris.

(CROSSTALK)

EPSTEIN: You are lying, Chris. You're not -- you're not telling the truth.

HAHN: Boris, you know, this is the thing. The Trump campaign, they want to shut everybody down...

EPSTEIN: Not at all.

HAHN: ...let us start a conversation here.

EPSTEIN: Sure.

HAHN: Let's have a conversation. Let me speak...

EPSTEIN: You are historically incorrect.

HAHN: The recession was historically bad. And this has been a great recovery, 14 million new jobs, the stock markets at record highs for most of the Obama presidency.

REGAN: I got to tell you...

HAHN: You know what?

REGAN: Someone who reports on this regularly, I can tell you exactly why the stock market is at record highs and it has nothing to do with the fundamentals of this economy and everything to do with an extremely aggressive federal reserve...

EPSTEIN: That's right.

REGAN: ...that was either printing money or leaving interest rates at record lows thereby leaving investors with no possible other place but to put their money...

HAHN: So, should they be raise interest rates?

REGAN: ...except into the market.

EPSTEIN: You saw those 500,000 workers who dropped out of the work force just in the last month that the economy is good...

HAHN: OK.

EPSTEIN: ...the recovery is good.

(CROSSTALK)

EPSTEIN:  You have got to be kidding yourself.

HAHN: We all know...

(CROSSTALK)

REGAN: Guys, we're going to keep this to keep going. But unfortunately, I don't have enough time tonight.

(CROSSTALK)

REGAN: Chris, it's good to see you. Boris, a pleasure as always. Thank you.

OK, we're going to be right back with more.

(COMMERCIAL BREAK)

REGAN: Developing tonight, new accusations against tech giant Google and what's being called a possible case of political favoritism. This coming on the heels of accusations that Facebook was intentionally stifling conservative stories on its website.

The allegations against Google, which Google has flatly denied, come in the form of an online video from new site, SourceFed which claims the search engine's auto correct feature intentionally omits terms that might be harmful to Clinton's campaign.

For more on the story, we go to William La Jeunesse, in our West Coast newsroom. William?

WILLIAM LA JEUNESSE, LOS ANGELES BASED CORRESPONDENT: Well, Trish SourceFed is a pop culture website. It claims Google intentionally manipulated search results to favor Hillary Clinton. Here's why.

You typed in Hillary Clinton, C-R-I Google's auto complete function automatically filled in Hillary Clinton climb bill and crisis. Do the same on Bing or Yahoo and you get Hillary Clinton criminal. Try again, you typed in Hillary Clinton I-N-D Google produces Hillary Clinton Indiana or India, Yahoo and Bing, Hillary Clinton indictment.

Yet, Google's own trending site showed eight times more searches for Clinton indictment than Clinton India.

MATT LIEBERMAN, SOURCEFED: The intention is clear. Google is burying potential searches for terms that could have hurt Hillary Clinton in the primary elections over the past several months by manipulating recommendations on their site.

LA JEUNESSE: But when SourceFed searched Sanders and Trump example Trump R-A-C for racist, this time the Google search matched Yahoo and Bing.

MORGAN WRIGHT, CYBER SECURITY EXPERT: This appears to be an intentional manipulation of search results. The presentation of those things to favor an outcome somebody wants.

LA JEUNESSE: So why tip the scales for Hillary Clinton? We'll, source head points to Google Executive Democratic Fund-Raiser and Clinton supporter, Eric Schmidt who created a company to provide her campaign with the best data analysis. But Google says it, and I'm quoting, does not favor any candidate or cause.

Claims to the contrary simply misunderstand how auto complete works. Predictions are produced based on a number of factors including the popularity of search terms. So Google also explains that its systems automatically filter out offensive or inappropriate auto complete predictions.

So, negative information is not the first thing that pops up for candidates or anyone else. Trish?

REGAN: All right.  William, thank you so much. Here with more is the cyber security expert, you just heard from in William's report, Morgan Wright. Morgan, good to see you.

WRIGHT: Hi, good to see you again, Trish.

REGAN: Do you think there's any foul play here?

WRIGHT: There's a Russian said one time comrades I don't believe in coincidence. Look, there's too much coincidence here. If it was just one engine and every other engine came up with the same results, I'd say nothing to see here, folks, move along.

But when Bing and Yahoo produced results that don't match Google on this one of Hillary Clinton but they match the same things for Bernie Sanders and Donald Trump.

You have to start asking has somebody messed with the algorithm, the automated reasoning that determines what people see and what they do because, you know, this is about perception and as you know in the news cycle and politics perception Trumps reality.

REGAN: Well, Morgan I mean Google is quite emphatic that they have had nothing to do with this. Is it possible that maybe someone within a campaign could have triggered something that would affect the algorithms or maybe even just an employee at Google itself that the company is not aware?

WRIGHT: Right. You know, I doubt that you're going to get an email from Eric Schmidt saying, "Hey, guys here's what I want you to do on the other hand, you know, you make it some people messed -- the algorithm is designed by humans, it's run by humans, it's tweaked by humans.

There's nothing to prevent somebody from saying, "Hey, we're going to turn the dial-up on negative stories and turn the dial-down on positive stories for a particular candidate or reverse that. There's nothing to prevent that from doing that. Now, it's going to require somebody.

But at campaign, you can't directly do that. But, look Trish I'm telling you, there are companies out there that would pay hundreds of thousands of dollars to get the type of favorable ranking and first page type of thing that Hillary Clinton is getting from this.

So, I think there's some -- there is a there but we don't know exactly what it is yet.

REGAN: So, maybe there's something there. We just don't know exactly what it is. But, you think about this tech companies and you know...

WRIGHT: Right.

REGAN: ...and this is coming on the heels as I mentioned earlier, coming on the heels of Facebook and Facebook...

WRIGHT: Facebook.

REGAN: ...has been heavily criticized for suppressing conservative views. And it has a lot of people kind of scratching their head and saying, look we know how liberal Silicon Valley is. Are they deliberately trying to suppress -- suppress the right in favor of the left?

WRIGHT: You know here's an interesting part about that, too at some point somebody is going to say, OK, this has happened too many times for it to be a coincidence. So, in this case, if it did somebody favor Hillary Clinton I have no idea, but I'm saying if somebody did, that would be worth hundreds of thousands of dollars.

Would that be considered a campaign contribution or are you going to trigger yet another investigation, potential, civil maybe criminal as to who violated campaign contribution laws...

REGAN: Oh, boy.

WRIGHT: ...and get into the backend of this? That's when they would find out did somebody send an email, that somebody change the algorithm...

REGAN: OK, This would be very interesting...

WRIGHT: ...which you'll have a criminal case.

REGAN: Morgan, thank you so much. Good to have you here.

WRIGHT: You bet, Trish.

REGAN: We're going to be right back.

(COMMERCIAL BREAK)

REGAN: I just want to thank Megyn again for letting me sit in for her tonight. And thank you everyone for watching. Please tune in to the "Intelligence Report", Monday at 2 pm Eastern on Fox Business. I will be live in New Hampshire for Trump's big speech as he promises to go after clipping hard. What could he possibly have to say? Have a great weekend.

END

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