Megyn Kelly on Obama's Supreme Court Slam, 9/11 Terror Trial in NYC

This is a RUSH transcript from "The O'Reilly Factor," January 28, 2010. This copy may not be in its final form and may be updated.

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BILL O'REILLY, HOST: In the "Kelly File" segment tonight: the most controversial part of the president's speech last night was this.


PRESIDENT BARACK OBAMA: With all due deference to separation of powers, last week the Supreme Court reversed a century of law that I believe will open the floodgates for special interests, including foreign corporations, to spend without limit in our election.


O'REILLY: OK. The real reason this is controversial is that there is a law that says foreign enterprises cannot — cannot — spend money in the U.S. election.

Now, we contacted the White House today. I got — this is from Ben LaBolt, office of the press secretary. A lot of stuff here. And they say the ruling leaves open the possibility — the possibility — of foreign-controlled corporations making contributions to elections in the USA.

With us now, Fox News anchor Megyn Kelly, whose new program, "America Live," as opposed to "America Deceased," debuts Monday at 1 p.m. Eastern Time.

Click here to watch the segment!

MEGYN KELLY, FOX NEWS ANCHOR: Some tapes are on tape. I'm not going to name those shows.

O'REILLY: Here's my...

KELLY: Some shows are but mine isn't.

O'REILLY: OK. Here's my question now. How long did it take for you to come up with "America Live"? We have "Larry King Live," and you know he's not alive.

KELLY: We love America, and we love to be live. And there will be no stories of any dead people at any time.

O'REILLY: So did this take weeks to come up with "America Live"?

KELLY: Run it up the flag pole. Somebody above my pay grade recently…

O'REILLY: All right. Now, I'm going to be watching this. Two hours of Megyn every day.

KELLY: It's going to be good. Everybody is going to be watching.

O'REILLY: I don't care about the spin. I just want the law.


O'REILLY: All right? I'm in Poland. I own a corporation. I want to give money to an American politician. Can I do it?


O'REILLY: What happens if I try?

KELLY: You're not allowed. I mean, if somebody caught you, you could be prosecuted for violation of law.

O'REILLY: OK. So if I'm from Poland and I want to go to Disney World and I show up and I gave money to John McCain or whoever, they can arrest me.

KELLY: Yes. That's not allowed. But — but here's what happened. President Obama came out and said that foreign companies, that this ruling by the Supreme Court, opens the door for foreign companies...

O'REILLY: Right.

KELLY: basically make contributions.

O'REILLY: Intrude into the election...

KELLY: And then it was pointed out that the law is actually that foreign companies are still not allowed to make these donations.

O'REILLY: Then why didn't the president know that?

KELLY: And then the White House — well, Laura Ingraham has a point. Whoever wrote that line for him in the speech needs to be held accountable. So then the White House came out and said, well, maybe it's not foreign corporations but subsidiaries — domestic subsidiaries of foreign corporations.

O'REILLY: But that's a pretty big...

KELLY: But even that is, arguably, not true, because there's an FEC regulation.

O'REILLY: But that's not what he said. He didn't say domestic subsidiaries.


O'REILLY: He didn't say a little...

KELLY: The Supreme Court...

O'REILLY: ...Monty's Auto Body Shop in Akron, which is owned by some Polish baron. You know, Monty lives in the United States.

KELLY: He said the Supreme Court opened the flood gates to special interests, including foreign companies, to spend without limits.

O'REILLY: And that's not true.

KELLY: And that's not true.

O'REILLY: So they made a mistake, the White House?

KELLY: I think they did, but...

O'REILLY: You think or you know?

KELLY: They did. They did.

O'REILLY: They did, OK.

KELLY: As spoken by President Obama is not accurate. But you know, in your promos you're saying how angry I was. What I'm angry about is that people called this Justice Alito's "Joe Wilson" moment.

O'REILLY: No, it wasn't.

KELLY: It was not.

O'REILLY: No. He just reacted like any human being would react.

KELLY: And the thing that bothered me, as a former Supreme Court correspondent, is that this is unprecedented. Yes, of course President Obama has a — has a right to say what he wants. Of course, he has a First Amendment right to espouse his opinion, even if it's in front of — in front of the justices, but this is unprecedented. In fact, according to the reports that I've looked at, a president has only even called out the Supreme Court on a decision nine times in U.S. history in the State of the Union. And every time I saw that we could pull up to the green room, very gingered, generic, like the Supreme Court…

O'REILLY: "I really love you guys, but..."

KELLY: "Their docket is overflowing. You know, we need to do something to reduce that." It wasn't a full frontal assault...

O'REILLY: And this was.

KELLY: ...on the justices who are sitting a stone's throw away from him.

O'REILLY: Do you think that was not classy? Or why did you get upset about it?

KELLY: I got upset because the Supreme Court — look at the poor justices.

O'REILLY: The poor guys?

KELLY: Look at the poor justices.

O'REILLY: They're the most powerful people in the country.

KELLY: They can't respond. Look at them. Look at them. They already have to wear those robes.

O'REILLY: Yes. You think Judge Sotomayor was asleep, by the way?

KELLY: Well, this underscores my point that it's not a Joe Wilson moment. If he was shouting out, don't you think she'd at least look at him?

O'REILLY: Yes, she would...

KELLY: I don't know if he actually spoke the words.

O'REILLY: Right.

KELLY: The guy had a visceral reaction to being called out.

O'REILLY: So you felt sorry for the Supreme Court?

KELLY: I felt sorry for them. I did.

O'REILLY: That's the kind of woman you are. Very sensitive.

KELLY: You know, I covered those justices. I think they're good people.

O'REILLY: You live here in New York City, and Mayor Bloomberg comes out five months after the fact and says, "Gee, you know, we shouldn't really have Khalid Sheikh Mohammed here, because it's going to cost $200 million for the first year."

KELLY: Right.

O'REILLY: And probably a three-year trial. Do the math. There is a movement in Congress to block any funding of the trial, federal funding.

KELLY: Right.

O'REILLY: Because the feds are going to have to give New York City some money. I'm going to predict right now that this guy is not going to be tried here in New York City. They'll be forced to move it out. But what is the law? Say President Obama comes to his senses and says, "You know, it's probably better to hand him back to the military." That's legal, is it not?

KELLY: It's legal and actually pretty easy, because when the military commission trials were dismissed, when those charges in the military commission were dismissed, they were dismissed without prejudice, which means you can re-file the charges at any time. Now, as a practical matter, they wouldn't do that until the criminal trial has been dismissed. So, if President Obama...

O'REILLY: The attorney general would have to dismiss the charges.


O'REILLY: And then the military would reconstitute them or whatever?

KELLY: Right. Right. They'd take it back up in the military commission, and he would be tried there.

O'REILLY: OK. Doesn't that make sense? I mean, I'm not going at this from an ideological point of view. You want to spend $600 million on these clowns jumping up and down?

KELLY: Well, listen, the attorney general if he were here, I think, would say...

O'REILLY: Would say what he always says.

KELLY: ...we've got the — he would say we've got the greatest justice system in the world, and we can handle such a trial.

O'REILLY: Maybe that's true.

KELLY: We have done it with terrorist suspects in the past.

O'REILLY: But why bother? Why bother, if legally...

KELLY: That's right.

O'REILLY: ...the Army can do this for $39.95 a day. OK? These guys are already getting paid. Not getting any more: $39.95. I did the math.


O'REILLY: That's it. A few sandwiches. Khalid gets maybe a — you know, a bagel, whatever he wants in the morning. OK, $600 million and this guy gets to scream and yell at his lawyers. Come on. This is insane.

KELLY: Well, that's the question. And really, the attorney general has yet to fully explain why he thinks the trial...


O'REILLY: I'm shocked. And the underwear bomber, do we really want to see this guy in his underwear? I don't want to see it.

KELLY: I've seen enough of it.

O'REILLY: Keep him in the military. Keep him and his shorts in Guantanamo. I don't want to see them.

KELLY: Yes, it's going to be — it's going to be a little awkward and embarrassing for the jurors if they look through the evidence in that one.

O'REILLY: All right, Kelly. We wish you the best of luck, 1 to 3 starting Monday.

KELLY: Thank you so much. Thank you.

O'REILLY: "America Live."

KELLY: And I have it on good authority that Mr. Bill O'Reilly will be a guest.

O'REILLY: Yes, well, we're negotiating. There's got to be some money.

KELLY: Yes. I'll have my people call your people.

O'REILLY: As long as Hemmer's not there, I'll show up. You're by yourself, right?

KELLY: All by myself like a grownup.

O'REILLY: You're going to miss Hemmer.

KELLY: I already do miss Hemmer.

O'REILLY: You're going to miss Hemmer. You are.

KELLY: He's a classy guy.

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