Gaetz: An old FBI business card isn't a 'get out of jail free card'

close

Video

Gaetz: An old FBI business card isn't a 'get out of jail free card'

DOJ declines to prosecute McCabe; Florida Republican Rep. Matt Gaetz reacts.

This is a rush transcript from "The Story with Martha MacCallum," February 14, 2020. This copy may not be in its final form and may be updated.

BRET BAIER, FOX NEWS HOST: That is one week. Thanks everybody for into your home today. That's it for "The Special Report". Fair, balanced and unafraid "The Story" guest hosted by Ed Henry starts right now. Ed did you ever get an answer from Gutfeld?

D HENRY, FOX NEWS HOST: Never got an answer, but I did shock him I think.

BAIER: All right, Happy Valentine's Day.

HENRY: See you. We'll see you buddy. First it was Iowa's Democratic Party Chair had to resign after the Caucus chaos. The pressure now mounting on the Chair of the Democratic National Committee to step down after he bended the debate rules to let in billionaire Michael Bloomberg amidst growing angst of the Former New York City Mayor may be their only hope for preventing a blowout loss to President Trump.

I'm Ed Henry in for Martha MacCallum. And this is "The Story" tonight. The President pouncing on the DNC's troubles to declare today those Democratic officials are again rigging the system to take the nomination away from Bernie Sanders a second time.

As Democrats grow increasingly skittish that the prospect of a Democratic socialist taking over. It is a problem for the rest of the 2020 field mount. Joe Biden so desperate for money right now he left South Carolina yesterday to make a dash for campaign cash right here in New York with Wall Street Titans and the one time frontrunner was greeted by protesters telling them that his time is up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Drop out Joe! Skip Nevada, skip South Carolina! Go home early!

(END VIDEO CLIP)

HENRY: Amy Klobuchar fresh offers surprisingly strong finish in New Hampshire now getting more scrutiny and having to explain why she called for the government too, guess what, build a fence along the southern border back in 2006.

While "POLITICO" says Elizabeth Warren who was briefly the frontrunner is now on the ropes explaining why Democrats are increasingly feeling the burn.

(BEGIN VIDEO CLIP)

SEN. BERNIE SANDERS (D-VT), PRESIDENTIAL CANDIDATE: We are getting the establishment just a little bit nervous. They look around and they say, my God, people are beginning to stand up and fight for justice! Well, the establishment is getting nervous. That is a good thing.

(END VIDEO CLIP)

HENRY: Well, guess who's right into the rescue for Sanders Bill De Blasio who endorsed Hillary Clinton four years ago who New York City's deeply unpopular Mayor is planning to endorse Sanders and campaign with him ahead of the Nevada Caucuses.

Remember De Blasio had to abandon his own Presidential campaign after polls in Iowa showed he couldn't reach 1 percent. It's no wonder then that with such a muddle field, the possibility of barreling towards a brokered convention this summer appears to be increasingly likely for the Democrats.

Karl Rove joins us live and that in just moments Correspondent Matt Gaetz is also here tonight on what might be another shocking example of the swamp winning again for the Justice Department deciding not to pursue criminal charges against Former Acting FBI Chief Andy McCabe.

Steve Hilton takes on the swamp all the time from Burisma payouts to unelected prosecutors going rogue. Tonight, he weighs in on talk of a new round of tax cuts coming from the White House. Victor Davis Hanson joins us to break down Hillary Clinton's latest jabs against the President.

But first, our top stories that Congresswoman Tulsi Gabbard she of course is a 2020 Democratic Presidential Candidate and is leading the charge against Tom Perez at DNC Chair right now. Congressman, thanks for coming in.

REP. TULSI GABBARD (D-HI), PRESIDENTIAL CANDIDATE: Thanks Ed, how are you?

HENRY: I'm doing great. What is your case against Tom Perez starting with Iowa as we see these new reports suggesting, maybe the DNC was more deeply involved in that app that caused the chaos?

GABBARD: It comes down to the failure of leadership and there are numerous examples of this failure of leadership that has shaken the trust and faith that voters in this primary election should have that when they go and cast their votes, their voices will be heard.

There has been an incredible lack of transparency around the failures of the Iowa Caucuses, the app that was such a terrible failure, and the DNC's involvement in this. You had a Former Iowa Democratic Party Chair saying that the Iowa Democratic Party should sue the DNC for making them use this app that had been completely untested.

And that if you look at who was involved with this app, you have Hillary Clinton's Former Campaign Manager Robby Mook. You have people who are very deeply entranced in the powerful elite in Washington who are backing this app.

What's really going on here? You mention the DNC changing the rules to let the billionaire Michael Bloomberg go on the debate stage, picking and choosing who they want voters to hear from rather than letting voters get the information they need to make that best informed decision when they go to the ballot box.

HENRY: Here's what Tom Perez said in fairness to him when pressed on whether he should step down?

(BEGIN VIDEO CLIP)

JAKE TAPPER, CNN HOST: Have you considered resigning?

TOM PEREZ, DEMOCRATIC NATIONAL COMMITTEE CHAIR: Absolutely not look at the last three years. My job when I came was to rebuild our infrastructure to win elections, and when you do that sometimes you got to make tough decisions. We have been winning. This is what it's about. I think it is really important for people to take a broader step back right now.

(END VIDEO CLIP)

HENRY: He clearly seems to be hanging it on the wins back in the midterms looking in the rearview mirror. What is your concern moving forward?

GABBARD: Look, Tom Perez and his own words said you know leading up to the Iowa Caucuses we've been working towards this day for three years, expressing his confidence that we are ready, well clearly that was not the case.

This includes other issues that really speak to disrespect to voters. Democratic voters across this country who deserve more than a DNC and their corporate media partners holding their own preprimary selection process making it very difficult or impossible for voters to hear from candidates that they do not want them to hear from.

This is about the people of our country, not the powerful elite in Washington. This is consistently been the message of my campaign, that we are taking out the voters all across this country, that we the people have to exercise our voices to bring about this change.

HENRY: But what is behind this? What do you think when you are saying a moment ago the Hillary Clinton's people were involved in the app originally are you suggesting that there is some sort of conspiracy or a problem that the President was out there with this tweet today suggesting that may be this is being rigged?

He says it is happening again a crazy Bernie just like last time only far more obvious. They're taking the Democratic nomination away from him and there is very little he can do a rig system. What is happening here?

GABBARD: I think it's important to be able to look at the facts and the evidence and what really led up to this failure and who was involved and the lack of transparency around all of this, from start to finish is raising a lot of questions and concerns in the minds of voters about how this could be allowed to happen? And what's really going on? Voters deserve to have the confidence, especially as we head into this critical election.

HENRY: Right.

GABBARD: Once again that this primary election will work for them.

HENRY: I've got 30 seconds but going back to 2016 you had endorsed Bernie Sanders. Clinton obviously did not like that. You have this lawsuit against Hillary Clinton because you said you were a favorite of the Russian and you've called that deformation. Hillary Clinton has been attacking Bernie Sanders he has been saying she is not sure she can support him. What's really happening in the Democratic Party, when there are these claims of unity and wanting to take out the President why all the in fight?

GABBARD: It is a distraction and noise away from the real change that we seek to bring about in this country. One that will be driven forward by voters in this country Democrats, Republicans and independence, people who were coalescing and supporting my campaign saying that we want to put our country first and really usher in a bright future and the government of, by and for the people.

We're going to agree and disagree on something but we've got to stand together motivated by this love of country.

HENRY: Congresswoman Gabbard, we appreciate you coming in.

GABBARD: Thanks, Ed.

HENRY: Also here tonight Karl Rove, Former Deputy Chief of Staff to President George W. Bush and a Fox News Contributor. Good evening Karl.

KARL ROVE, FROMER DEPUTY CHIEF OF STAFF, PRESIDENT GEORGE W. BUSH: Evening.

HENRY: Given the fact that we hear from one Democrat after another that their sole goal is trying to beat President Trump in November, why the infighting?

ROVE: Well, because they all want to be the person who's got the nomination of the Democratic Party and to take on President Trump. You can't get there apparently just by saying by who you are and what you are for? You've got to keep somebody from getting ahead of you and the natural inclination in a primary in a crowded primary is to just try and distinguish yourself by taking down somebody else, in particular taking down a frontrunner.

HENRY: The frontrunner - who do you see as a frontrunner right now because Bernie sanders obviously seems to have the edge and that's creating angst in the party?

ROVE: Yes. Well, there is a continuing revolving frontrunner. Biden was a frontrunner, Warren was briefly a frontrunner. Mayor Pete was briefly a frontrunner Bernie is back being the frontrunner.

There is no frontrunner in a contest in which everybody is finding it hard to break the 25, 26, 27 percent level. Even if you get rid of all of the lesser lights, right today Pete Buttigieg and Bernie Sanders have roughly 32 percent of a very small pool of delegates who've been elected so far.

Some people take a potshot at what they seem to be the frontrunner others take a potshot whom they to be a good target, Mayor Bloomberg is right now the - he is not leading in the polls but he is a welcome target for a number of people.

So it really just depends on the moment and the best the people think they can advance them, so let's not kid ourselves. These wounds are deep this anger is deep this is not going to go away quickly. They're not going to come together in Milwaukee and immediately sing Kumbaya and say everything that we've said about each other and all the feelings that our supporters have now been somehow healed and were all unified behind one person.

HENRY: Where does this give a lift service?

ROVE: It is not going to be that way down to--

HENRY: So where does this go? What's the bottom line tonight? You seem to be suggesting we are heading for a brokered convention. Does Michael Bloomberg--

ROVE: Let's look at the math. As of the end of March 3rd 40 percent of the delegates are going to be selected. Let's say that somebody is strong enough that they get 35 percent. Remember, we've got like five or six candidates who are going to be capable of getting delegates.

We have got six people who got delegates already. So if they get 35 percent that means of the total of delegates at the national convention, they won 14 percent of those delegates. Now they need to get to 50 percent of the total delegates.

That means that of the remaining 60 percent of the delegates who will be selected after the March 3rd, they got to get 60 percent in order to get those 36 points to bring them to that magic number of 50 plus one.

That's going to be awfully hard to do given that the field is so divided. That's why Bloomberg is going to be a potentially very destructive force and not necessarily that he's going to be playing on the 3rd of March and is going to be in double digits and above 15 percent in many, many states. But then so is Bernie Sanders. So is Pete Buttigieg. So are some of the others.

HENRY: Last question on Bernie Sanders. We just reported that Bill De Blasio now getting involved. He is going to endorse Bernie Sanders. Bernie Sanders put out a tweet a few moments ago saying here's Bill De Blasio fighting so hard every single day for hardworking New Yorkers and all of the rest. Has he been paying attention to bail reform and some of the other problems under the De Blasio right now they have raised some real problems?

ROVE: Look, when you're in a primary like this sometimes you live in a bubble and he is living in a bubble and he seems to think Mayor De Blasio is going to be a big plus for him. If I were him, I would rather be Mayor Bloomberg who got the endorsement in the last few days of the Mayors of many cities for example here in Texas, El Paso, Dallas, and Houston.

The Mayor of Houston is notorious for never endorsing and yet he has come out for Bloomberg. Now how much that translates on election day is yet to be proven because Bernie does have one thing and that is he is the leader of the left-wing of the Democrat Party and they've been coming up for him strongly and they'll keep doing so.

HENRY: We started with chaos in Iowa Caucus; you seem to be suggesting we may have chaos on the way to Milwaukee this summer.

ROVE: Want to be a delight for all of us political junkies.

HENRY: Following of course. Karl, we appreciate it tonight.

ROVE: You bet. Thank you so much.

HENRY: The DOJ meanwhile dropping another bombshell, saying it will not prosecute Andy McCabe the Former FBI Chief who admitted to opening the investigation into President Trump and Russia. Republican Congressman Matt Gaetz is here. He's got some thoughts next.

(BEGIN VIDEO CLIP)

REP. MATT GAETZ (R-FL): The facts of Andrew McCabe dead to rights. He lied to Comey, he lied to the Inspector General and he lied to the Internal Affairs investigation who had determined that he had authorized the release of information that disclosed the work that was being done regarding the Clinton Foundation.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

HENRY: We heard these reports a week or so though that Andrew McCabe might be indicted. Hasn't happened, the report came out on Comey it was kind of slap on the wrist. Are you worried that some of these guys who you believe are going after you are going to get off the hook?

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: And on McCabe certainly what he's done is just despicable. But we'll see what happens? We'll see where it all goes? I think that there are a lot of things happening right now. But we'll see what happens?

(END VIDEO CLIP)

HENRY: President Trump reportedly not happy tonight that the DOJ is dropping its case against that man Andy McCabe the Former Acting FBI Chief was under criminal probe after a DOJ watchdog found he made an unauthorized leak of sensitive information and then misled investigators about it at least three times under oath. Here is McCabe reacting to the news tonight.

(BEGIN VIDEO CLIP)

ANDREW MCCABE, FORMER ACTING FBI DIRECTOR: As glad as I am that the Justice Department and the D.C. U.S. attorney's office finally decided to do the right thing today, it is an absolute disgrace that they took two years and put my family through this experience for two years before they finally drew the obvious conclusion.

(END VIDEO CLIP)

HENRY: Joining me now, Republican Congressman Matt Gaetz a member of the House Judiciary Committee. Congressman, thank you for coming in.

GAETZ: Thank you, Ed, Happy Valentine's Day to you.

HENRY: Same to you. Andy McCabe says the disgrace is it took so long for him to be exonerated, is that right?

GATEZ: The disgrace is that Andrew McCabe is not going to be behind bars. Let's remember he lied about leaking, and then he lied about lying about leaking. We can't live in a world where an old FBI business card doubles as he gets out of jail free card when people break the law.

Especially when you see the - when folks were accused of lying like Roger Stone and Michael Flynn, they had the book thrown at him. So I think there's probably a little swamp left to be drained at the Department of Justice and I'm hopeful that Attorney General Bill Barr will get the job done in that regards.

HENRY: So what happened did Bill Barr, the Attorney General let you and President down?

GAETZ: I wouldn't make that allegation, there's a lot of folks in the Department of Justice, remember Bruce Ohr still works there for goodness sake. So when you get down below the senior management I still think that there's some work to be done to have folks who reflect I think the right views and values that the senior leadership at the FBI have.

I've total confidence in Bill Barr. I think that the Durham indictment, I shouldn't say report but indictments will be effective in helping to drain the swamp over there but certainly disappointing news as to McCabe.

HENRY: But hold on Congressman you seem to be letting senior people of the Justice Department off the hook. We played a clip a moment ago of you with me on this program in September where you said "We've got McCabe dead to rights." If you had McCabe dead to rights, why is he not being held accountable? The President and his team oversee the Justice Department?

GAETZ: The factual allegations that I made that you played before the break were born out in the Inspector General's Report. So these aren't allegations by House Republicans or the President. These are allegations by the FBI against the Former FBI Director Andrew McCabe.

Whether or not the prosecution that are been brought forward to me is obvious, I think it should have been but remember, these prosecutions have to go before a D.C. Grand Jury. I believe there was a D.C. Grand Jury impaneled as to McCabe and it might very well been the case that they weren't able to get an indictment.

That's not the fault of the senior leadership of the FBI it is just the consequence of our criminal justice system.

HENRY: But Congressman you're close to this President. What is his reaction tonight? We are seeing these reports that he's furious about it. Have you talked to him? Have you heard about his reaction?

GAETZ: I've been on a plane haven't spoken to the President. Today, I wished him Happy Valentine's Day. But I suspect that he's frustrated that Andrew McCabe will not face the consequence because, really, Andrew McCabe got the ball rolling on this investigation and I believe it was truly McCabe who converted this from a counterintelligence investigation that it was supposed to protect the President and protect the President's Campaign into a criminal probe and McCabe had his own problems lying about his own leaks to the media.

HENRY: But Congressman, last question. You saw me interviewing this President in September at the wall near San Diego, California. And I pressed him about James Comey who he's been hot about for a long time. He got a slap on the wrist even though as you say the Inspector General filed wrongdoing.

Now McCabe, Inspector General on the record found wrongdoing, lied under oath, all the rest of it. It got him fired. And yet he's getting off the hook. Are you really confident tonight that John Durham, this prosecutor, is really going to hold people accountable?

GAETZ: Durham has different powers than were given to the Inspector General. He can actually bring criminal charges and it's my expectation that he will, but obviously when you see Comey and McCabe, and you see Bruce Ohr for example still working at the FBI, it's easy for the American people to wonder whether or not the FBI and the Department of Justice will truly go after their own. And when you get below the senior management may there is the case that those folks are getting leniency that they should not be allowed to get.

HENRY: All right, Congressman Matt Gaetz we certainly appreciate you coming in tonight.

GAETZ: Thank you.

HENRY: Meanwhile, Hillary Clinton now alleging President Trump's power over the Department of Justice is evidence, get this, our democracy is in crisis. Victor Davis Hanson says she has simply never recovered from that humiliating defeat in 2016. He's next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER FIRST LADY OF UNITED STATES: This occupant of the Oval Office poses a clear and present danger to our future to our democracy.

(END VIDEO CLIP)

HENRY: Hillary Clinton right there sounding the alarm again tonight saying President Trump suggesting that he has a legal right to intervene in criminal cases and threatening New York over its investigations of him are evidence that our democracy she says is basically in a free fall.

The Former Secretary of State tweeted, "In the last 24 hours the American President has one corruptly pressured a Governor to drop lawsuits against him to reverse punitive policy change, two claim the power to personally direct the Justice Department to investigate anyone he wants. He wants our democracy in crisis right now".

Here is Victor Davis Hanson he is Senior Fellow at the Hoover Institute, Author of "The case for Trump". Victor thank you for coming in.

VICTOR DAVIS HANSON, HOOVER INSTITUTION SENIOR FELLOW: Thank you.

HENRY: What is she talking about tonight?

HANSON: I don't know. It's pretty rich. This is someone whose husband met on the tarmac with Loretta Lynch when the DOJ was investigating Hillary Clinton to the auspices of the FBI. She wasn't - about that at all.

None in 2016 did more to warp the constitutional process of elections than Hillary Clinton. Remember she used three firewalls, three firewalls, a D&C Perkin Coway and Glenn Simpson's Fusion GPS, and she hired, I think it was legal, a foreign national British Christopher Steele who interned and enlisted embedded or hired Russian sources to create a smear dossier in our political opponent.

And then she used her contacts along with Glenn Simpson and the DOJ, the FBI, the CIA to see that dossier and we lost 22 months of time when they pursued this Russian hoax. And she has never come to terms with the fact that she lost the election, she reduced 25 or 30 different reasons all blaming someone else, but who had been a traditional American politics that when you lost election, you conceded and you were magnanimous about it, you said I lost it because I campaigned in the wrong place in the wrong way at the wrong time.

And said she blamed variously the Russians. She tried to get the electors not to honor the Electoral College. She signed up for the emoluments clause cycle drama, the 25th amendment, Mueller et cetera, et cetera.

HENRY: What about her going after the President charging political interference when the President spoke out and said, look, nine years to Roger Stone for lying. Shouldn't lie, but lying nine years seems like a long time when we just did the story about Andy McCabe who was running the FBI, lied under oath three times, and is now not being charged. Does that not sound like two-tiered Justice in America?

HANSON: Yes, of course it is. It's asymmetrical. It's been asymmetrical with Michael Flynn, it was asymmetrical with Roger Stone, and it is based on the idea that a bipartisan group of people deeply embedded in the federal government have two sets of rules and laws.

But President's way in all the time on criminal cases. It's not illegal. I mean, they editorialize in ways that may be are not wise. But remember Barack Obama right during the Treyvon Martin said, Treyvon Martin looks is a son that I never had. He weighed in on the Skip Gates arrest. He weighed in on Hillary Clinton's own e-mail and editorialize. Nobody --

(CROSSTALK)

ED HENRY, FOX NEWS HOST: He was it wasn't a national security issue.

HANSON: This is part of the psyche. Absolutely. This is another one of her cycle dramas. Again, I think a lot of it is the angst. That she had the money, she had the media, she had the bipartisan swamp, and she blew the election because she was a poor campaigner.

She campaigned in the wrong places, in the wrong manner and then most importantly, she alienated a quarter of the electorate and called them deplorables and irredemables.

HENRY: Yes, and the last.

HANSON: And she's kind of discredited Clintonism. Yes, there's Clintonism that sort of blue dog third wave Democratic success story in '92 has been discredited because if you look at the field today, the subtext is that they're not going to run any campaign in any way that resembles the triangulation of Hillary Clinton.

HENRY: Yes.

HANSON; So she's kind of like, I could say she is a tragic figure but she is more pathetic than more than she talks and weighs --

(CROSSTALK)

HENRY: They deem to have kept her arm's length as well. No doubt about it. Victor Davis Hanson, I appreciate you coming in tonight.

HANSON: Thank you.

HENRY: Next, Michael Bloomberg keeps on rising in the polls. But could some troubling comments on race bring him down?

Gianno Caldwell and Rochelle Ritchie join me on that, next.

(COMMERCIAL BREAK)

HENRY: Michael Bloomberg creeping into third base nationally in one poll this week but as he emerges as a viable candidate in the race for president other Democrats are taking aim at his past comments on race, including Elizabeth Warren now accusing him of lying over controversial banking practice known as redlining.

Our correspondent Kevin Corke has details from Washington tonight. Good evening, Kevin.

KEVIN CORKE, FOX NEWS WHITE HOUSE CORRESPONDENT: Good evening, Ed.

His name has yet to appear on any early state ballot but Michael Bloomberg is still a story. After all, he is spending millions of dollars on political ads all over the country.

Now that does make him a little bit of a political oddity but it also makes him a political target, in particular by those who are obviously trying to take them down a peg or two. We're speaking in particular about the Massachusetts Senator Elizabeth Warren and the former Vice President Joe Biden.

Each of them taking shots at the former mayor because of his former comments, as you pointed out about racially tense mortgage redlining, and obviously stop and frisk is another big story. Warren in particular, Ed, says the former mayor has no business being the party's standard-bearer now or in the future.

(BEGIN VIDEO CLIP)

SEN. ELIZABETH WARREN (D-MA), PRESIDENTIAL CANDIDATE: That video just came out yesterday in which Michael Bloomberg is saying in effect that the 2008 financial crash was caused because the banks weren't permitted to discriminate against black and brown people.

That crisis would not have been averted if the banks had been able to be bigger racists.

(APPLAUSE)

WARREN: And anyone who thinks that should not be the leader of our party.

(END VIDEO CLIP)

CORKE: Strong words from Elizabeth Warren. By the way, may have seen this ad on Thursday, the senator released a video on Twitter about her plan to address housing with the caption, 'here is a history lesson on the racist legacy of redlining if any presidential candidate needs a refresher.'

All right. Speaking of refreshers, let's refresh your memory on the Democratic calendar moving forward. We have the Nevada caucuses coming up on the 22nd, South Carolina primary, February 29, big day, Super Tuesday coming up March 3rd.

Obviously, a lot will happen between now and then, but how the field shakes up between now and Super Tuesday will go a long way in telling us not only who Bloomberg would have to knock off to get the nomination but just how many people he'd have to go through to get there.

But make no mistake about it, he is still not the front runner, that meant to belong to Bernie Sanders with Pete Buttigieg, obviously neck and neck as we look ahead to Nevada. Ed?

HENRY: All right. Kevin Corke, thank you.

CORKE: You bet.

HENRY: Here now with more, Gianno Caldwell, he is the author of "Taken for Granted," and Rochelle Ritchie, former press secretary for the House Democrats. Welcome to both of you.

ROCHELLE RITCHIE, DEMOCRATIC STRATEGIST: Hi, Ed.

GIANNO CALDWELL, AUTHOR, TAKEN FOR GRANTED: Thank you.

HENRY: Gianno, what kind of heat is Michael Bloomberg, what kind of trouble is he in tonight?

CALDWELL: You know what, this isn't just about Michael Bloomberg. Twenty- twenty Democrats are now fighting for the title who's the least racist among them because every viable candidate has significant race issues.

For example, it's rich to learn that Biden is attacking Bloomberg when he is not only the creator of the '94 crime bill but also the architect of the '86 crack laws which impacted my own family.

Putting that aside, African-American voters should be concerned that their only options on the Democratic side have worked to marginalize them. This is a continuous trend with Democrats from slavery, Jim Crow, redlining, color codes, '86 crack laws, '94 crime bills, Governor Ralph Northam, Bloomberg and others, this party has been anti-black and always been. So, this isn't a surprise to me.

HENRY: Well, I think party officials will push back against the idea that they've always been anti-black. But let me get Rochelle --

CALDWELL: That's my opinion.

HENRY: Your opinion tonight. Rochelle, what's yours?

RITCHIE: You know, Ed, I absolutely don't think that the Democratic Party has been completely anti-black forever. But I will say this. I watch the eight minutes and 25 seconds of that entire video from Bloomberg and the six seconds that has been put out by the media is really a misrepresentation of what he was actually saying.

When I watched that video, I watched it 10 times and I said, this man is actually saying that the method used to end redlining is the problem. He was not saying that we should have redlining and that it should be, you know, we should have these discriminatory practices.

He was saying this method that they used to end redlining was the problem because that's what led the fact that the banks were giving loans to people who cannot afford them or didn't have the proper credit, that's what happened leading up to the mortgage crisis.

He was not saying that redlining is something that, you know, should still be implemented. And I'm really disappointed --

CALDWELL: Right.

RITCHIE: -- that Elizabeth Warren attempted to misrepresent that fact, and --

(CROSSTALK)

HENRY: But Rochelle,

RITCHIE: -- I think that people need to watch it for themselves.

HENRY: Didn't he say in that clip something to the effect of those people now getting lending. That's what frustrated people, the way he was categorizing black people.

RITCHIE: So -- and that's why you have to watch it again. He says the banks were telling the sales people that those people will not -- he was not saying that.

(CROSSTALK)

HENRY: And the Congress and lawmakers were telling him.

RITCHIE: He was -- exactly. He was attributing those statements to the banks when you watch --

HENRY: OK.

RITCHIE: -- the real entire clip.

HENRY: But Gianno, is that good enough for you?

CALDWELL: No. I mean, let's think about what has happened over the course of this week. Even with stop and frisk. Bloomberg that 95 -- or well over 90 percent of those individuals that you stop in these communities were black and brown and these were the ones committing the crimes. That's factually incorrect.

Not to mention the fact that when Bloomberg talks about African-Americans, it's usually in a very harsh tone. This isn't -- this isn't something that's unique to Michael Bloomberg.

This is something that we see Democrats all across the -- all across the country. Just last year, late last year, I went to the Democratic debate and I was behind Joe Biden's team, they recognize me from working at Fox News Channel.

HENRY: Yes.

RITCHIE: OK.

CALDWELL: These folks came at me and said all kind of racially charged language --

(CROSSTALK)

RITCHIE: They are going to say racially --

CALDWELL: -- racist language. I got to -- and people don't believe it.

RITCHIE: -- charged language that you --

CALDWELL: Hold on, Rochelle.

HENRY: OK. Let him finish and I'll let you in.

RITCHIE: Regardless if you mean a conservative --

CALDWELL: Rochelle, let me finish, Rochelle.

RITCHIE: Regardless if you mean a conservative, we all know --

CALDWELL: Rochelle, Rochelle, let me finish.

HENRY: Please let him finish, Rochelle. I promise, Rochelle.

CALDWELL: See this is the thing. If you don't have anything to say that's fact base then you want to argue and speak over me --

(CROSSTALK)

RITCHIE: Well, you're talking about yourself, but go ahead.

CALDWELL: I'm talking about my personal experiences with Joe Biden's team.

(CROSSTALK)

HENRY: Finish your --

CALDWELL: I've got video on Instagram at Gianno Caldwell which prove -- proves it.

RITCHIE: My God.

CALDWELL: So, I'm not just talking about something that I'm making it up.

HENRY: OK. But, what's your point?

RITCHIE: I'm not saying that you're making it up, but I'm sating stop and frisk -- if people have this problem with stop and frisk, they have a problem with the Fourth Amendment.

It's not just something that is with Bloomberg. It is something that is within our Constitution that people have an issue with. It's not just Bloomberg, it's across.

It's a Terry stop. It's just another name for a Terry stop which is protected by the Fourth Amendment. And that's why people have to do their homework to really understand.

CALDWELL: So, you agree with this assessment that 90 percent of the crimes are committed by minorities?

RITCHIE: No, that's not what I'm saying. What I'm saying is that people have a problem with stop and frisk, it does not end or begin with Bloomberg. And if he is not the Democratic nominee I'm interested to see how many people actually come out and start to protest against the Fourth Amendment and ask for some changes.

(CROSSTALK)

HENRY: OK. Last word from Gianno.

CALDWELL: I'm interested --

(CROSSTALK)

HENRY: Didn't stop and frisk actually reduce crime in this --

CALDWELL: Sorry?

HENRY: Didn't stop and frisk actually reduce crime here in New York City?

CALDWELL: It did reduce it, but that's not the point that I'm pushing.

(CROSSTALK)

RITCHIE: (Inaudible) to ports stop and frisk, by the way.

CALDWELL: That's not the point that I'm pushing at all. My point is Democrats oftentimes go against Republicans and call them racist and all these kinds of names --

HENRY: Yes.

CALDWELL: -- and never, never hold their own accountable. And that's where it becomes problematic.

RITCHIE: They are calling -- they're calling each other's racist right now. Your whole, like for a segment you were saying that Democrats are calling each other racist now.

(CROSSTALK)

CALDWELL: Yes, where's the protest? Why is Governor Northam still in office, Rochelle? Why is Governor Northam still in office?

RITCHIE: I don't know. That's ridiculous.

(CROSSTALK)

HENRY: He is in (Inaudible) controversy.

RITCHIE: I can't stand the fact that he's still in office and he is rehabilitating himself.

CALDWELL: Why is Governor Northam still in office?

RITCHIE: He shouldn't be.

CALDWELL: There's no accountability. He's accepted racism --

(CROSSTALK)

HENRY: OK. Rochelle, Gianno, thank you.

CALDWELL: Thank you.

HENRY: President Trump and his economic team now laying the groundwork for tax cuts 2.0. They are trying to propel that blue-collar boom and keep it going.

Steve Hilton joins me on that, next.

(COMMERCIAL BREAK)

HENRY: President Trump riding into the 2020 campaign on what he calls a blue-collar boom as the administration floats another round of economic stimulus known as tax cuts 2.0. to put more money into middle-class pockets.

Kristin Fisher has the story tonight from Washington. Kristin?

KRISTIN FISHER, FOX NEWS CORRESPONDENT: Hey, Ed.

Two big headlines that came from this interview with the White House's top economic advisor Larry Kudlow. The first is that President Trump wants to give the middle class a 10 percent tax cut. And he wants to release that plan in September. Just two go months before the election.

Here's a clip of the interview that airs in full tonight on Fox Business.

(BEGIN VIDEO CLIP)

MARIA BARTIROMO, FOX BUSINESS NETWORK ANCHOR: Are you working on another tax cut plan right now, Larry?

LARRY KUDLOW, WHITE HOUSE NATIONAL ECONOMIC DIRECTOR: Yes, we are. Tax cuts 2.0. In a meeting in the Oval, I guess two days ago, he looked at me and he said let's get it out by September. I've been consulting with the House colleagues.

We'd love to have a 10 percent middle-class tax cut. It's a second term issue, Maria.

BARTIROMO: OK.

KUDLOW: Now it's a future issue for middle-class tax relief and stronger economics.

BARTIROMO: All right.

(END VIDEO CLIP)

FISHER: Kudlow also raise the possibility of USA account or universal savings accounts being included in the new plan. The idea would be to combine and simplify all existing savings accounts that give tax breaks like IRAs and 401Ks.

And does anyone who's been to or listened to what Trump rally knows how much the president likes talking about how well 401Ks are doing under his administration.

The strong economy is one of his greatest strengths heading into November. And while he did get a first round of tax cuts through in 2017, there have been complaints that it didn't do enough for average Americans.

So, President Trump started raising the possibility of a phase two tax cut or tax cuts 2.0 in March of 2018. Now it appears he wants to put it on paper at the same time his Democratic rivals are putting out plans focused on raising taxes for wealthy Americans. It will be quite a contrast. Ed?

HENRY: Kristin, thank you. Here now with more, Steve Hilton. He is the host of The Next Revolution, 9 p.m. Eastern Sunday night. Steve, good to have you tonight.

STEVE HILTON, FOX NEWS HOST: Hi, Ed. Good to be with you.

HENRY: Do you see tax cuts 2.0, as the president kind of doubling down on his biggest strength?

HILTON: Yes, very much so. Look, I love Larry Kudlow. I love what he was talking about there because actually the tax cuts we've already seen are the heart of two of this administration's biggest accomplishments.

First of all, the jobs numbers, the fact that we have historically low unemployment. And secondly, the fact that earnings are rising especially for those at the lower end of the income scale. And the reason for that is not just the personal tax cuts that put more money into people's pockets. They did do that.

But also, the corporate tax cut, because that led to a boom in investment. That leads to higher productivity and more productive workers get paid more.

So, actually the whole tax cut package was incredibly important and it's rally significant that they want to do it again and I totally support that.

Plus, as Kristin said, it's a fantastic political contrast with what the Democratic candidates are saying going into the election.

HENRY: We'll get to the Democrats in a minute. But Steve, if the president is doing so well in the economy, Gallup is saying more than 6 in 10 Americans believe they're better off now than they were three or four years ago. Why have more tax cuts, why have more stimulus that might overcook the economy? If things are so well, why does he need to do more?

HILTON: Well, you've got to keep it going. I mean, a good economy doesn't just happen. The fact that we've got this good economy now is the result of the previous measures. Not just a tax cut, also the deregulation.

And if you want to keep that going, remember, we are already in the longest expansion in history. We've never gone this far without going from one recession back into the next recession.

A lot of people say while Trump is just building on the Obama economy and so on, actually what he's doing is really substantively different. Because it's so much harder to keep the good times going at the end of an expansion than is it at the beginning where you're just bouncing back.

So, if we want to keep that going you've got to give, put more fuel in the tank, if you like --

HENRY: Yes.

HILTON: -- and keep the good times rolling.

HENRY: Steve, you mention the contrast with 2020 Democrats, it's not just that folks like Bernie Sanders who want to call back the Trump tax cuts, if you will. They actually want to raise your taxes. They are saying it.

Bernie Sanders has said in multiple debates, to pay for all these trillions of dollars, they won't even give us a price tag on everything, Medicare for all, student loan debt, you know, relief and all the rest, they are going to raise taxes.

HILTON: Yes, exactly. And that's going to hit people two ways. Not just directly in their paychecks where they'll see more money going out of their paychecks to the government, but it's also going to hit the economy more generally because if you raise taxes, and remember, they also want to reverse the corporate tax cut. They all want to do that. Even the so-called moderates in the race.

Mike Bloomberg of all people who should know better put out a tax plan which is about hiking up the corporate tax rate so it's one of the highest in the world, making it less competitive. That will hurt job creation. That will mean that you won't have that productivity increase.

HENRY: Yes.

HILTON: Earnings won't continue to rise. So, it hits you two ways. It's a devastating blow to the economy. That contrast is going to be so powerful come November when we have in the general election.

HENRY: Steve, in the last 30 seconds I have, is there another contrast potentially? Larry Kudlow said look, we want to bring this up in September after the summer right before the election.

You and I both know Nancy Pelosi is likely to block that. Doesn't it also send the signal Democrats who took over the House have been obstructing his agenda.

HILTON: Exactly right. That's why this is so smart. Because it focuses the spotlight on an issue where the president is strong. And it raises the stakes.

He said, look, here is something really good that you can get, but if you want to get it you not only have to put me back in the White House, we have to win back the House of Representatives and keep control of the Senate.

HENRY: All right.

HILTON: And it sets the agenda for all of those races in a very helpful way to the president.

HENRY: Steve Hilton, we certainly appreciate your insight tonight. We'll be watching you Sunday night. Thank you.

HILTON: Thanks, Ed.

HENRY: In the meantime, a guilty verdict for anti-Trump attorney Michael Avenatti. The breaking details when the story continues.

(BEGIN VIDEO CLIP)

MICHAEL AVENATTI, FORMER STORMY DANIEL'S ATTORNEY: A lot of people are afraid of the truth.

UNIDENTIFIED FEMALE: Sir, you said a lot of the people are afraid of the truth?

AVENATTI: A lot of people are afraid of the truth in case I'm going to embrace it.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

HENRY: Michael Avenatti the attorney who built a name for himself as an anti-Trump crusader and famously represented adult film actress Stormy Daniels in her lawsuits against the president, guess what, he was found guilty today for trying to extort money out of Nike. Millions of dollars. This is months after pundits actually considered him a serious presidential contender for the Democrats.

Our correspondent David Miller has that story tonight. David?

DAVID LEE MILLER, FOX NEWS CORRESPONDENT: Ed, the jury deliberated for almost three days before convicting high profile lawyer Michael Avenatti on three criminal charges including extortion and wire fraud.

Avenatti who did not testify said he was unfairly targeted because of his representation of adult entertainer Stormy Daniels and lawsuits against President Trump.

Prosecutors told the jury Avenatti demanded that athletic shoe Nike pay him as much $25 million to conduct an internal investigation of the company or even hold a damaging news conference alleging Nike made improper payouts to high school athletes on the eve of Nike's quarterly financial report.

Nike called in the feds who secretly recorded Avenatti making his demand.

(BEGIN VOICE CLIP)

AVENATTI: A few million dollars doesn't move the needle for me. If that's what is being contemplated, then let's just say it was good to meet you, and we're done. And I'll proceed with my press conference tomorrow and I will go take $10 billion off your client's market cap. But I'm not (muted) around.

(END VOICE CLIP)

MILLER: Avenatti's lawyer tried to portray him as an aggressive attorney who is representing a client upset with Nike's cancellation of sponsorship of a youth basketball program.

Following the verdict, his attorney described Avenatti's reaction.

(BEGIN VIDEO CLIP)

We're very disappointed as can you imagine. Thankfully we have appellate rights that we are going to exercise, so you should expect an appeal.

(END VIDEO CLIP)

MILLER: Avenatti's legal problems are not over. He faces two more criminal federal trials and a slew of allegations including embezzlement and tax fraud. Ed?

HENRY: David Lee Miller, thank you. That is The Story for Friday, February 14th, 2020. Happy Valentine's Day. But as always, The Story continues. I'll see you again Monday morning on America's Newsroom with my co-host Sandra Smith, 9 a.m. Eastern. And my friend Martha MacCallum will be back right here Monday night. Until then, have a great weekend.

Content and Programming Copyright 2020 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2020 ASC Services II Media, LLC. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of ASC Services II Media, LLC. You may not alter or remove any trademark, copyright or other notice from copies of the content.