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Mar 27, 2023 • 1h 26min

CD270: The Twitter Files

The First Amendment prohibits the U.S. government from censoring speech. In this episode, drawing from internal Twitter documents known as “the Twitter files” and Congressional testimony from tech executives, former Twitter employees, and journalists, we examine the shocking formal system of censorship in which government employees are using their influence over private companies to indirectly censor speech in a way that they are clearly prohibited from doing directly. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Twitter Files Matt Taibbi. Jan 4, 2023. Racket News. Matt Taibbi Matt Taibbi. Mar 12, 2023. Racket News. Feb 13, 2023. The Joe Rogan Experience. Hunter Biden Laptop Story [tweet]. Michael Shellenberger [@ShellenbergerMD]. Dec 19, 2022. Twitter. Influence, Propaganda, and Censorship Alex Berenson. Jan 9, 2023. Unreported Truths. Lee Fang. December 20, 2022. The Intercept. Aug 24, 2022. The Washington Post. Audio Sources March 9, 2023 House Judiciary Committee, Subcommittee on the Weaponization of the Federal Government Witnesses: Matt Taibbi, Journalist Michael Shellenberger, Author, Co-founder of the Breakthrough Institute and the California Peace Coalition Clips 17:20 Rep. Jim Jordan (R-OH): In the run up to the 2020 Presidential election, FBI Special Agent Elvis Chan, in his deposition in Missouri versus Biden, said that he repeatedly, repeatedly, informed Twitter and other social media platforms of the likelihood of a hack and leak operation in the run up to that Presidential election. He did it even though there was no evidence. In fact, he said in his deposition that we hadn't seen anything, no intrusions, no hack, yet he repeatedly told them something was common. Yoel Ross, Head of Trust and Safety at Twitter, testified that he had had regular meetings with the Office of the Director of National Intelligence, the Department of Homeland Security, the FBI, and other folks regarding election security. During these weekly meetings, federal law enforcement agencies communicated that they expected a hack and leak operation. The expectations of a hack and leak operation were discussed throughout 2020. And he was told they would occur in a period shortly before the 2020 Presidential election, likely in October. And finally, he said "I also learned in these meetings, that there were rumors that a hack and leak operation would involve Hunter Biden." So what did the government tell him? A hack and leak operation was coming. How often did the government tell him this? Repeatedly for a year. When did the government say it was going to happen? October of 2020. And who did the government say it would involve? Hunter Biden. 19:35 Rep. Jim Jordan (R-OH): How did they know? Maybe it's because they had the laptop and they had had it for a year. 21:50 Rep. Jim Jordan (R-OH): Finally, as if on cue, five days later on October 19, 51 former intel[ligence] officials signed a letter with a now famous sentence "the Biden laptop story has all the classic earmarks of a Russian information operation." Something that was absolutely false. 25:25 Rep. Stacey Plaskett (D-VI): And the Republicans have brought in two of Elon Musk's public scribes to release cherry-picked, out-of-context emails and screenshots designed to promote his chosen narrative, Elon Musk's chosen narrative, that is now being paroted by the Republicans, because the Republicans think that these witnesses will tell a story that's going to help them out politically. 25:50 Rep. Stacey Plaskett (D-VI): On Tuesday, the majority released an 18 page report claiming to show that the FTC is quote, "harassing" Twitter -- oh my poor Twitter -- including by seeking information about its interactions with individuals before us today. How did the report reach this conclusion? By showing two single paragraphs from a single demand letter, even though the report itself makes clear that there were numerous demand letters with numerous requests, none of which we've been able to see, that are more demand letters and more requests of Twitter. 28:05 Rep. Stacey Plaskett (D-VI): Mr. Chairman, Americans can see through this. Musk is helping you out politically and you're going out of your way to promote and protect him and to praise him for his work. 28:15 Rep. Stacey Plaskett (D-VI): This isn't just a matter of what data was given to these so-called journalists before us now. 31:35 Rep. Stacey Plaskett (D-VI): Mr. Chairman, I'm not exaggerating when I say that you have called before you two witnesses who pose a direct threat to people who oppose them. 32:30 Rep. Stacey Plaskett (D-VI): We know this is because at the first hearing, the Chairman claimed that big government and big tech colluded to shape and mold the narrative and suppress information and censor Americans. This is a false narrative. We're engaging in false narratives here and we are going to tell the truth. 37:35 Michael Shellenberger: I recognize that the law allows Facebook, Twitter, and other private companies to moderate content on their platforms and I support the right of governments to communicate with the public, including to dispute inaccurate information, but government officials have been caught repeatedly pushing social media platforms to censor disfavored users and content. Often these acts of censorship threaten the legal protection social media companies need to exist, Section 230. If government officials are directing or facilitating such censorship, and as one law professor, it raises serious First Amendment questions. It is axiomatic that the government cannot do indirectly what it is prohibited from doing directly. 41:50 Matt Taibbi: My name is Matt Taibbi, I've been a reporter for 30 years and a staunch advocate of the First Amendment. Much of that time was spent at Rolling Stone magazine. Ranking Member Plaskett, I'm not a "so-called" journalist. I've won the National Magazine Award, the I.F Stone Award for Independent Journalism, and I've written 10 books, including four New York Times bestsellers. 45:35 Matt Taibbi: Ordinary Americans are not just being reported to Twitter for deamplification or deplatforming, but to firm's like Pay Pal, digital advertisers like Xandr, and crowdfunding sites like GoFundMe. These companies can and do refuse service to law abiding people and businesses whose only crime is falling afoul of a distant, faceless, unaccountable, algorithmic judge. 44:00 Matt Taibbi: Again, Ranking Member Plaskett, I would note that the evidence of Twitter-government relationship includes lists of tens of thousands of names on both the left and right. The people affected include Trump supporters, but also left leaning sites like Consortium and Truthout, the leftist South American channel TeleSUR, the Yellow Vest movement. That, in fact, is a key point of the Twitter files, that it's neither a left nor right issue. 44:40 Matt Taibbi: We learned Twitter, Facebook, Google and other companies developed a formal system for taking in moderation requests from every corner of government from the FBI, the DHS, the HHS, DOD, the Global Engagement Center at [the Department of] State, even the CIA. For every government agency scanning Twitter, there were perhaps 20 quasi private entities doing the same thing, including Stanford's Election Integrity Partnership, Newsguard, the Global Disinformation Index, and many others, many taxpayer funded. A focus of this fast growing network, as Mike noted, is making lists of people whose opinions beliefs, associations, or sympathies are deemed misinformation, disinformation or malinformation. That last term is just a euphemism for true but inconvenient. Undeniably, the making of such lists is a form of digital McCarthyism. 1:01:00 Matt Taibbi: So, a great example of this is a report that the Global Engagement Center sent to Twitter and to members of the media and other platforms about what they called "the Pillars of Russian Disinformation." Now, part of this report is what you would call, I think you would call, traditional hardcore intelligence gathering where they made a reasoned, evidence baseed case that certain sites were linked to Russian influence or linked to the Russian government. In addition to that, however, they also said that sites that quote, "generate their own momentum," and have opinions that are in line with those accounts are part of a propaganda ecosystem. Now, this is just another word for guilt by association. And this is the problem with the whole idea of trying to identify which accounts are actually the Internet Research Agency and which ones are just people who follow those accounts or retweeted them. Twitter initially did not find more than a handful of IRA accounts. It wasn't until they got into an argument with the Senate Select Intelligence Committee that they came back with a different answer. 1:06:00 Rep. Debbie Wasserman-Schultz (D-FL): Before you became Elon Musk's handpicked journalists, and pardon the oxymoron, you stated this on Joe Rogan's podcast about being spoon fed information. And I quote, "I think that's true of any kind of journalism," and you'll see it behind me here. "I think that's true of any kind of journalism. Once you start getting handed things, then you've lost. They have you at that point and you got to get out of that habit. You just can't cross that line." Do you still believe what you told Mr. Rogan? Yes or no? Yes or no? Matt Taibbi: Yes. Rep. Debbie Wasserman-Schultz (D-FL): Good. Now, you crossed that line with the Twitter files. Matt Taibbi: No. Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk -- It's my time, please do not interrupt me. Crowd: [laughter] Rep. Debbie Wasserman-Schultz (D-FL): Elon Musk spoon fed you his cherry-picked information, which you must have suspected promotes a slanted viewpoint, or at the very least generates another right wing conspiracy theory. 1:11:20 Matt Taibbi: That moment on the Joe Rogan show, I was actually recounting a section from Seymour Hersh's book, Reporter, where he described a scene where the CIA gave him a story and he was very uncomfortable. He said that "I, who had always gotten the secrets, was being handed the secrets." Again, I've done lots of whistleblower stories. There's always a balancing test that you make when you're given material, and you're always balancing newsworthiness versus the motives of your sources. In this case, the newsworthiness clearly outweighed any other considerations. I think everybody else who worked on the project agrees. 1:14:45 Rep. Dan Bishop (R-NC): Richard Stengel, you know who that is? Matt Taibbi: Yes, he's the former, the first head of the Global Engagement Center. Rep. Dan Bishop (R-NC): I want the American people to hear from him for 30 seconds. Richard Stengel: Basically, every country creates their own narrative story. And, you know, my old job at the State Department was what people used to joke as the "chief propagandist" job. We haven't talked about propaganda. Propaganda. I'm not against propaganda. Every country does it, and they have to do it to their own population. 1:24:20 Rep. Jim Jordan (R-OH): December 13, the very first letter that the FTC sends to Twitter after the Twitter files, 11 days after the first Twitter file, there have been five of them come out, the FTC's first demand in that first letter after the Twitter files come out is identify all journalists. I'm quoting "identify all journalists and other members of the media" to whom Twitter worked with. You find that scary, Mr. Taibbi, that you got a federal government agency asking a private company who in the press are you talking with? Matt Taibbi: I do find it scary. I think it's none of the government's business which journalists a private company talks to and why. I think every journalist should be concerned about that. And the absence of interest in that issue by my fellow colleagues in the mainstream media is an indication of how low the business has sunk. There was once a real esprit de corps and camaraderie within Media. Whenever one of us was gone after, we all kind of rose to the challenge and supported -- Rep. Jim Jordan (R-OH): It used to be, used to be the case. Matt Taibbi: Yeah, that is gone now. 1:28:50 Rep. Stacey Plaskett (D-VI): How many emails did Mr. Musk give you access to? Michael Shellenberger: I mean, we went through thousands of emails. Rep. Stacey Plaskett (D-VI): Did he give you access to all of the emails for the time period in which? Michael Shellenberger: We never had a single, I never had a single request denied. And not only that, but the amount of files that we were given were so voluminous that there was no way that anybody could have gone through them beforehand. And we never found an instance where there was any evidence that anything had been taken out. Rep. Stacey Plaskett (D-VI): Okay. So you would believe that you have probably millions of emails and documents, right? That's correct, would you say? Michael Shellenberger: I don't know if -- I think the number is less than that. Matt Taibbi: Millions sounds too high. Rep. Stacey Plaskett (D-VI): Okay. 100,000? Matt Taibbi: That's probably closer. Michael Shellenberger: Probably, yeah. Rep. Stacey Plaskett (D-VI): So 100,000 that both of you were seeing. 1:37:10 Matt Taibbi: There were a couple of very telling emails that wepublished. One was by a lawyer named [Sasha Cardiel???], where the company was being so overwhelmed by requests from the FBI and in fact they, they gave each other a sort of digital High Five after one batch, saying "that was a monumental undertaking to clear all of these," but she noted that she believed that the FBI was essentially doing word searches keyed to Twitter's Terms of Service, looking for violations of the Terms of Service, specifically so that they could make recommendations along those lines, which we found interesting. 1:48:15 Michael Shellenberger: And we haven't talked about Facebook, but we now know that we have the White House demanding that Facebook take down factual information and Facebook doing that. 1:48:25 Michael Shellenberger: And with Matt [Taibbi]'s thread this morning we saw the government contractors demanding the same thing of Twitter: accurate information, they said, that needed to be taken down in order to advance a narrative. 1:49:55 Matt Taibbi: You know, in conjunction with our own research, there's a foundation, the Foundation for Freedom Online, which, you know, there's a very telling video that they uncovered where the Director of Stanford's Election Integrity Partnership (EIP) talks about how CISA, the DHS agency, didn't have the capability to do election monitoring, and so that they kind of stepped in to "fill the gaps" legally before that capability could be amped up. And what we see in the Twitter files is that Twitter executives did not distinguish between DHS or CISA and this group EIP, for instance, we would see a communication that said, from CISA, escalated by EIP. So they were essentially identical in the eyes of the company. EIP is, by its own data, and this is in reference to what you brought up, Mr. Congressman, according to their own data, they significantly targeted more what they call disinformation on the right than on the left, by a factor I think of about ten to one. And I say that as not a Republican at all, it's just the fact of what we're looking at. So yes, we have come to the realization that this bright line that we imagine that exists between, say the FBI or the DHS, or the GEC and these private companies is illusory and that what's more important is this constellation of kind of quasi private organizations that do this work. 1:52:10 Rep. Sylvia Garcia (D-TX): What was the first time that Mr. Musk approached you about writing the Twitter files? Matt Taibbi: Again, Congresswoman that would — Rep. Sylvia Garcia (D-TX): I just need a date, sir. Matt Taibbi: But I can't give it to you, unfortunately, because this this is a question of sourcing, and I don't give up... I'm a journalist, I don't reveal my sources. Rep. Sylvia Garcia (D-TX): It's a question of chronology. Matt Taibbi: No, that's a question of sourcing — Rep. Sylvia Garcia (D-TX): Earlier you said that someone had sent you, through the internet, some message about whether or not you would be interested in some information. Matt Taibbi: Yes. And I refer to that person as a source. Rep. Sylvia Garcia (D-TX): So you're not going to tell us when Musk first approached you? Matt Taibbi: Again, Congresswoman, you're asking me, you're asking a journalist to reveal a source. Rep. Sylvia Garcia (D-TX): You consider Mr. Musk to be the direct source of all this? Matt Taibbi: No, now you're trying to get me to say that he is the source. I just can't answer — Rep. Sylvia Garcia (D-TX): Either he is or he isn't. If you're telling me you can't answer because it's your source, well, then the only logical conclusion is that he is in fact, your source. Matt Taibbi: Well, you're free to conclude that. Rep. Sylvia Garcia (D-TX): Well, sir, I just don't understand. You can't have it both ways. But let's move on because -- Unknown Representative 1: No, he can. He's a journalist. Unknown Representative 2: He can't, because either Musk is the source and he can't talk about it, or Musk is not the source. And if Musk is not the source, then he can discuss [unintelligible] Rep. Jim Jordan (R-OH): No one has yielded, the gentlelady is out of order, you don't get to speak — Multiple speakers: [Crosstalk] Rep. Jim Jordan (R-OH): The gentlelady is not recognized...[crosstalk]...he has not said that, what he has said is he's not going to reveal his source. And the fact that Democrats are pressuring him to do so is such a violation of the First Amendment. Multiple speakers: [Crosstalk] Rep. Sylvia Garcia (D-TX): I have not yielded time to anybody. I want to reclaim my time. And I would ask the chairman to give me back some of the time because of the interruption. Mr. Chairman, I am asking you, if you will give me the seconds that I lost. Rep. Jim Jordan (R-OH): We will give you that 10 seconds. Rep. Sylvia Garcia (D-TX): Thank you. Now let's talk about another item. When you responded to the ranking member, you said that you had free license to look at everything but yet you yourself posted on your...I guess it's kind of like a web page...I don't quite understand what Substack is, but what I can say is that "in exchange for the opportunity to cover a unique and explosive story, I had to agree to certain conditions." What were those conditions? She asked you that question and you said you had none. But you yourself posted that you had conditions? Matt Taibbi: The conditions, as I've explained multiple times -- Rep. Sylvia Garcia (D-TX): No sir, you have not explained, you told her in response to her question that you had no conditions. In fact, you used the word licensed, that you were free to look at all of them. All 100,000 emails. Matt Taibbi: The question was posed, was I free to to write about — Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Matt Taibbi: The condition was that we publish — Rep. Sylvia Garcia (D-TX): Sir, did you have any conditions? Yes or no? A simple question. Matt Taibbi: Yes. Rep. Sylvia Garcia (D-TX): All right. Could you tell us what conditions those were? Matt Taibbi: The conditions were an attribution of sources at Twitter and that we break any news on Twitter. Rep. Sylvia Garcia (D-TX): But you didn't break it on Twitter. Did you send the file that you released today to Twitter first? Matt Taibbi: Did I send the...actually I did, yes. Rep. Sylvia Garcia (D-TX): Did you send it to Twitter first? Matt Taibbi: The Twitter files thread? Rep. Sylvia Garcia (D-TX): That was one of the conditions? Yes or no, sir. Matt Taibbi: The Twitter files thread actually did come out first. Rep. Sylvia Garcia (D-TX): But sir, you said earlier that you had to attribute all the sources to Twitter first. What you released today, did you send that to Twitter first? Matt Taibbi: No, no, no, I post I posted it on Twitter Rep. Sylvia Garcia (D-TX): First. First, sir, or did you give it to the Chairman of the Committee or the staff of the Committee first? Matt Taibbi: Well, that's not breaking the story, that's giving...I did give — Rep. Sylvia Garcia (D-TX): So you gave all the information that you did not give to the Democrats, you gave it to the Republicans first, then you put it on Twitter? Matt Taibbi: Actually, no, the chronology is a little bit confused. Rep. Sylvia Garcia (D-TX): Well then tell us what the chronology was. Matt Taibbi: I believe the thread came out first. Rep. Sylvia Garcia (D-TX): Where? Matt Taibbi: On Twitter Rep. Sylvia Garcia (D-TX): On Twitter. So then you afterwards gave it to the Republicans, and not the Democrats? Matt Taibbi: Yes, because I'm submitting it for the record as my statement. Rep. Sylvia Garcia (D-TX): Did you give it to him in advance? Matt Taibbi: I gave it to them today. Rep. Sylvia Garcia (D-TX): You gave it to them today, but you still have not given anything to the Democrats. Well, I'll move on. 1:57:20 Rep. Sylvia Garcia (D-TX): Now in your discussion, in your answer, you also said that you were invited by a friend, Bari Weiss? Michael Shellenberger: My friend, Bari Weiss. Rep. Sylvia Garcia (D-TX): So this friend works for Twitter, or what is her....? Matt Taibbi: She's a journalist. Rep. Sylvia Garcia (D-TX): Sir, I didn't ask you a question. I'm now asking Mr. Shellenberger a question. Michael Shellenberger: Yes, ma'am, Bari Weiss is a journalist. Rep. Sylvia Garcia (D-TX): I'm sorry, sir? Michael Shellenberger: She's a journalist. Rep. Sylvia Garcia (D-TX): She's a journalist. So you work in concert with her? Michael Shellenberger: Yeah. Rep. Sylvia Garcia (D-TX): Do you know when she first was contacted by Mr. Musk? Michael Shellenberger: I don't know. Rep. Sylvia Garcia (D-TX): You don't know. So you're in this as a threesome? 2:00:10 Michael Shellenberger: Reading through the whole sweep of events, I do not know the extent to which the influence operation aimed at "pre-bunking" the Hunter Biden laptop was coordinated. I don't know who all was involved. But what we saw was, you saw Aspen and Stanford, many months before then, saying don't cover the material in the hack and leak without emphasizing the fact that it could be disinformation. Okay, so they're priming journalists to not cover a future hack and leak in a way that journalists have long been trained to in the tradition of the Pentagon Papers, made famous by the Steven Spielberg movie. They were saying [to] cover the fact that it probably came from the Russians. Then you have the former General Counsel to the FBI, Jim Baker, and the former Deputy Chief of Staff to the FBI, both arriving at Twitter in the summer of 2020, which I find, what an interesting coincidence. Then, when the New York Post publishes its first article on October 14, it's Jim Baker who makes the most strenuous argument within Twitter, multiple emails, multiple messages saying this doesn't look real. There's people, there's intelligence experts, saying that this could be Russian disinformation. He is the most strenuous person inside Twitter arguing that it's probably Russian disinformation. The internal evaluation by Yoel Roth, who testified in front of this committee, was that it was what it looked to be, which was that it was not a result of a hack and leak operation. And why did he think that? Because the New York Post had published the FBI subpoena taking the laptop in December of 2019. And they published the agreement that the computer store owner had with Hunter Biden that gave him permission, after he abandoned the laptop, to use it however he wanted. So there really wasn't much doubt about the provenance of that laptop. But you had Jim Baker making a strenuous argument. And then, of course, you get to a few days after the October 14 release, you have the president of the United States echoing what these former intelligence community officials were saying, which is that it looked like a Russian influence operation. So they were claiming that the laptop was made public by the conspiracy theory that somehow the Russians got it. And basically, they convinced Yoel Roth of this wild hack and leak story that somehow the Russians stole it, got the information, gave us the computer, it was bizarre. So you read that chain of events, and it appears as though there is an organized influence operation to pre-bunk.... Rep. Jim Jordan (R-OH): Why do you think they could predict the time, the method, and the person? Why could the FBI predict it? Not only did they predict this, they predicted it, so did the Aspen Institute, seemed like everyone was in the know saying, here's what's gonna happen, we can read the future. Why do you think, how do you think they were able to do that? Michael Shellenberger: I think the most important fact to know is that the FBI had that laptop in December 2019. They were also spying on Rudy Giuliani when he got the laptop and when he gave it to the New York Post. Now, maybe the FBI agents who are going to Mark Zuckerberg at Facebook and Twitter executives and warning of a hack and leak, potentially involving Hunter Biden, maybe those guys didn't have anything to do with the guys that had the top. We don't know that. I have to say, as a newcomer to this, as somebody that thought it was Russian disinformation in 2020, everybody I knew thought it was Russian disinformation, I was shocked to see that series of events going on. It looks to me like a deliberate influence operation. I don't have the proof of it, but the circumstantial evidence is pretty disturbing. 2:14:30 Matt Taibbi: We found, just yesterday, a Tweet from the Virality Project at Stanford, which was partnered with a number of government agencies, and Twitter, where they talked explicitly about censoring stories of true vaccine side effects and other true stories that they felt encouraged hesitancy. Now the imp— Unknown Representative: So these were true. Matt Taibbi: Yes. So they use the word truth three times in this email, and what's notable about this is that it reflects the fundamental misunderstanding of this whole disinformation complex, anti-disinformation complex. They believe that ordinary people can't handle difficult truths. And so they think that they need minders to separate out things that are controversial or difficult for them, and that's again, that's totally contrary to what America is all about, I think. 2:17:30 Rep. Dan Goldman (D-NY): Of course we all believe in the First Amendment, but the First Amendment applies to government prohibition of speech, not to private companies. 2:33:00 Rep. Dan Goldman (D-NY): And even with, Twitter you cannot find actual evidence of any direct government censorship of any lawful speech. 2:33:20 Rep. Jim Jordan (R-OH): I'd ask unanimous consent to enter into the record the following email from Clarke Humphrey, Executive Office of the Presidency, White House Office, January 23, 2021. That's the Biden Administration. 4:39am: "Hey folks," this goes to Twitter, "Hey folks, wanted..." they used the term Mr. Goldman just used, "wanted to flag the below Tweet, and I'm wondering if we can get moving on the process for having it removed ASAP." 2:35:40 Rep. Mike Johnson (R-LA): He said the First Amendment applies to government censorship of speech and not private companies, but what we're talking about and what the Chairman just illustrated is that what we have here and what your Twitter files show is the Federal government has partnered with private companies to censor and silence the speech of American citizens. 2:29:20 Matt Taibbi: In the first Twitter files, we saw an exchange between Representative Ro Khanna and Vijaya Gadde, where he's trying to explain the basics of speech law in America and she's completely, she seems completely unaware of what, for instance, New York Times v. Sullivan is. There are other cases like Bartnicki v. Vopper, which legalized the publication of stolen material, that's very important for any journalists to know. I think most of these people are tech executives, and they don't know what the law is around speech and around reporting. And in this case, and in 2016, you are dealing with true material. There is no basis to restrict the publication of true material no matter who the sources and how you get it. And journalists have always understood that and this has never been an issue or a controversial issue until very recently. 2:44:40 Rep. Kat Cammack (R-FL): Would you agree that there was a black list created in 2021? Michael Shellenberger: Sorry, yes, Jay Bhattacharya, the Stanford Professor, who I don't think anybody considers a fringe epidemiologist, was indeed -- I'm sorry, I couldn't, I didn't piece it together -- he was indeed visibility filtered. Rep. Kat Cammack (R-FL): Correct. And so this blacklist that was created, that really was used to de-platform, reduce visibility, create lists internally, where people couldn't even see their profiles, that was used against doctors and scientists who produced information that was contrary to what the CDC was putting out, despite the fact that we now know that what they were publishing had scientific basis and in fact was valid. Michael Shellenberger: Absolutely. And not only that, but these are secret blacklists, so Professor Bhattacharya had no idea he was on it. 43:05 Matt Taibbi: The original promise of the internet was that it might democratize the exchange of information globally. A free internet would overwhelm all attempts to control information flow, its very existence a threat to anti-democratic forms of government everywhere. What we found in the Files was a sweeping effort to reverse that promise and use machine learning and other tools to turn the Internet into an instrument of censorship and social control. Unfortunately, our own government appears to be playing a lead role. We saw the first hints and communications between Twitter executives before the 2020 election, when we read things like "flagged by DHS," or "please see attached report from FBI for potential misinformation." This would be attached to an Excel spreadsheet with a long list of names, whose accounts were often suspended shortly after. February 13, 2023 The Joe Rogan Experience Clips Matt Taibbi: So this is another topic that is fascinating because it hasn't gotten a ton of press. But if you go back all the way to the early 70s, the CIA and the FBI got in a lot of trouble for various things, the CIA for assassination schemes involving people like Castro, the FBI for, you know, COINTELPRO and other programs, domestic surveillance, and they made changes after Congressional hearings, the Church Committee, that basically said the FBI, from now on, you have to have some kind of reason to be following somebody or investigating somebody, you have to have some kind of criminal predicate and we want you mainly to be investigating cases. But after 9/11 they peeled all this back. There was a series of Attorney General memos that essentially re-fashioned what the FBI does, and now they don't have to be doing crimefighting all the time. Now they can be doing basically 100% intelligence gathering all the time. They can be infiltrating groups for no reason at all, not to build cases, but just to get information. And so that's why they're there. They're in these groups, they're posted up outside of the homes of people they find suspicious, but they're not building cases and they're not investigating crimes. It's sort of like Minority Report there, right? It's pre-crime. Matt Taibbi: We see reports in these files of government agencies sending lists of accounts that are accusing the United States of vaccine corruption. Now, what they're really talking about is pressuring foreign countries to not use generic vaccines. Right. And, you know, that's a liberal issue, that's a progressive issue. The progressives want generic vaccines to be available to poor countries, okay? But, you know, you can use this tool to eliminate speech about that if you want too, right? I think that's what they don't get is that the significance is not who [it's used against], the significance is the tool. What is it capable of doing, right? How easily is it employed, and you know, how often is it used? And they don't focus on that. Joe Rogan: Has anything been surprising to you? Matt Taibbi: A little bit. I think going into it, I thought that the relationship between the security agencies like the FBI and the DHS and companies like Twitter and Facebook, I thought it was a little bit less formal. I thought maybe they had kind of an advisory role. And what we find is that it's not that, it's very formalized. They have a really intense structure that they've worked out over a period of years where they have regular meetings. They have a system where the DHS handles censorship requests that come up from the States and the FBI handles international ones, and they all float all these companies and it's a big bureaucracy. I don't think we expected to see that. Matt Taibbi: I was especially shocked by an email from a staffer for Adam Schiff, the Congressperson, the California Congressman. And they're just outright saying we would like you to suspend the accounts of this journalist and anybody who retweets information about this Committee. You know, I mean, this is a member of Congress. Joe Rogan: Yeah. Matt Taibbi: Right? Most of these people have legal backgrounds. They've got lawyers in the office for sure. And this is the House Intelligence Committee. February 8, 2023 House Committee on Oversight and Accountability Witnesses: Vijaya Gadde, Former Chief Legal Officer, Twitter James Baker, Former Deputy General Counsel, Twitter Yoel Roth, Former Global Head of Trust & Safety, Twitter Annika Collier Navaroli, Former Policy Expert for Content Moderation, Twitter Clips 14:50 Rep. Jamie Raskin (D-MD): What's more, Twitter's editorial decision has been analyzed and debated ad nauseam. Some people think it was the right decision. Some people think it was the wrong decision. But the key point here is that it was Twitter's decision. Twitter is a private media company. In America, private media companies can decide what to publish or how to curate content however they want. If Twitter wants to have nothing but Tweets commenting on New York Post articles run all day, it can do that. If it makes such tweets mentioning New York Post never see the light of day they can do that too. That's what the First Amendment means. 16:05 Rep. Jamie Raskin (D-MD): Officially Twitter happens to think they got it wrong about that day or two period. In hindsight, Twitter's former CEO Jack Dorsey called it a mistake. This apology might be a statement of regret about the company being overly cautious about the risks of publishing contents and potentially hacked or stolen materials, or it may reflect craven surrender to a right wing pressure campaign. But however you interpreted the apology just makes the premise of this hearing all the more absurd. The professional conspiracy theorists who are heckling and haranguing this private company have already gotten exactly what they want: an apology. What more do they want? And why does the US Congress have to be involved in this nonsense when we have serious work to do for the American people? 26:20 James Baker: The law permits the government to have complex, multifaceted, and long term relationships with the private sector. Law enforcement agencies and companies can engage with each other regarding, for example, compulsory legal process served on companies, criminal activity that companies, the government, or the public identify, such as crimes against children, cybersecurity threats, and terrorism, and instances where companies themselves are victims of crime. When done properly, these interactions can be beneficial to both sides and in the interest of the public. As you Mr. Chairman, Mr. Jordan, and others have proposed, a potential workable way to legislate in this area may be to focus on the actions of federal government agencies and officials with respect to their engagement with the private sector. Congress may be able to limit the nature and scope of those interactions in certain ways, require enhanced transparency and reporting by the executive branch about its engagements, and require higher level approvals within the executive branch prior to such engagements on certain topics, so that you can hold Senate confirmed officials, for example, accountable for those decisions. In any event, if you want to legislate, my recommendation is to focus first on reasonable and effective limitations on government actors. Thank you, Mr. Chairman. 31:05 Vijaya Gadde: On October 14, 2020, The New York Post tweeted articles about Hunter Biden's laptop with embedded images that looked like they may have been obtained through hacking. In 2018, we had developed a policy intended to prevent Twitter from becoming a dumping ground for hacked materials. We applied this policy to the New York Post tweets and blocked links to the articles embedding those sorts of materials. At no point to Twitter otherwise prevent tweeting, reporting, discussing or describing the contents of Mr. Biden's laptop. People could and did talk about the contents of the laptop on Twitter or anywhere else, including other much larger platforms, but they were prevented from sharing the primary documents on Twitter. Still, over the course of that day, it became clear that Twitter had not fully appreciated the impact of that policy on free press and others. As Mr. Dorsey testified before Congress on multiple occasions, Twitter changed its policy within 24 hours and admitted its initial action was wrong. This policy revision immediately allowed people to tweet the original articles with the embedded source materials, relying on its long standing practice not to retroactively apply new policies. Twitter informed the New York Post that it could immediately begin tweeting when it deleted the original tweets, which would have freed them to retweet the same content again. The New York Post chose not to delete its original tweets, so Twitter made an exception after two weeks to retroactively apply the new policy to the Post's tweets. In hindsight, Twitter should have reinstated the Post account immediately. 35:35 Yoel Roth: In 2020, Twitter noticed activity related to the laptop that at first glance bore a lot of similarities to the 2016 Russian hack and leak operation targeting the DNC, and we had to decide what to do. And in that moment with limited information, Twitter made a mistake. 36:20 Yoel Roth: It isn't obvious what the right response is to a suspected, but not confirmed, cyber attack by another government on a Presidential Election. I believe Twitter erred in this case because we wanted to avoid repeating the mistakes of 2016. 38:41 Annika Collier Navaroli: I joined Twitter in 2019 and by 2020 I was the most senior expert on Twitter's U.S. Safety Policy Team. My team's mission was to protect free speech and public safety by writing and enforcing content moderation policies around the world. These policies include things like abuse, harassment, hate speech, violence and privacy. 41:20 Annika Collier Navaroli: With January 6 and many other decisions, content moderators like me did the very best that we could. But far too often there are far too few of us and we are being asked to do the impossible. For example, in January 2020 after the US assassinated an Iranian General and the US president decided to justify it on Twitter, management literally instructed me and my team to make sure that World War III did not start on the platform. 1:08:20 Rep. Nancy Mace (R-SC): Did the US government ever contact you or anyone at Twitter to censor or moderate certain Tweets, yes or no? Vijaya Gadde: We receive legal demands to remove content from the platform from the US government and governments all around the world. Those are published on a third party website. 1:12:00 Yoel Roth: The number one most influential part of the Russian active measures campaign in 2016 was the hack and leak targeting John Podesta. It would have been foolish not to consider the possibility that they would run that play again. 1:44:45 Yoel Roth: I think one of the key failures that we identified after 2016 was that there was very little information coming from the government and from intelligence services to the private sector. The private sector had the power to remove bots and to take down foreign disinformation campaigns, but we didn't always know where to look without leads supplied by the intelligence community. That was one of the failures highlighted in the Senate Intelligence Committee's report and in the Mueller investigation, and that was one of the things we set out to fix in 2017. Rep. Gerry Connolly (D-VA): On September 8 2019, at 11:11pm, Donald Trump heckled two celebrities on Twitter -- John Legend and his wife Chrissy Teigen -- and referred to them as "the musician John Legend and his filthy mouth wife." Ms. Teigen responded to that email [Tweet] at 12:17am. And according to notes from a conversation with you, Ms. Navaroli's, counsel, your counsel, the White House almost immediately thereafter contacted Twitter to demand the tweet be taken down. Is that accurate? Annika Collier Navaroli: Thank you for the question. In my role, I was not responsible for receiving any sort of request from the government. However, what I was privy to was my supervisors letting us know that we had received something along those lines or something of a request. And in that particular instance, I do remember hearing that we had received a request from the White House to make sure that we evaluated this tweet, and that they wanted it to come down because it was a derogatory statement towards the President. Rep. Gerry Connolly (D-VA): They wanted it to come down. They made that request. Annika Collier Navaroli: To my recollection, yes. Rep. Gerry Connolly (D-VA): I thought that was an inappropriate action by a government official, let alone the White House. But it wasn't Joe Biden, about his son's laptop. It was Donald Trump because he didn't like what Chrissy Teigen had to say about him, is that correct? Annika Collier Navaroli: Yes, that is correct. Rep. Gerry Connolly (D-VA): My, my, my. 1:45:15 Rep. Shontel Brown (D-OH): Mr. Roth, were those communication channels useful to Twitter as they work to combat foreign influence operations? Yoel Roth: Absolutely, I would say they were one of the most essential pieces of how Twitter prepared for future elections. 2:42:35 Rep. Becca Balint (D-VA): Ms. Gadde, did anyone from the Biden campaign or the Democratic National Committee direct Twitter to remove or take action against the New York Post story? Vijaya Gadde: No. 4:15:45 Rep. Kelly Armstrong (R-ND): And now we forward to 2020. And earlier you had testified that you were having regular interactions with National Intelligence, Homeland Security and the FBI. Yoel Roth: Yes, I did. Rep. Kelly Armstrong (R-ND): And primarily to deal with foreign interference? Yoel Roth: Primarily, but I would say -- Rep. Kelly Armstrong (R-ND): But you had said earlier your contact with Agent Chang was primarily with foreign interference? Yoel Roth: Yes, that's right. Rep. Kelly Armstrong (R-ND): And these were emails....were there meetings? Yoel Roth: Yes, Twitter met quarterly with the FBI Foreign Interference Task Force and we had those meetings running for a number of years to share information about malign foreign interference. Rep. Kelly Armstrong (R-ND): Agents from Homeland Security or Intelligence, or just primarily the FBI? Yoel Roth: Our primary contacts were with the FBI and in those quarterly meetings, they were, I believe, exclusively with FBI personnel. 4:18:05 Rep. Kelly Armstrong (R-ND): Earlier today you testified that you were following national security experts on Twitter as a reason to take down the New York Post story on Hunter Biden's laptop. Yoel Roth: Yes, sir, I did. Rep. Kelly Armstrong (R-ND): So after 2016, you set up all these teams to deal with Russian interference, foreign interference, you're having regular meetings with the FBI, you have connections with all of these different government agencies, and you didn't reach out to them once? Yoel Roth: Is that question in reference to the day of the New York Post article? Rep. Kelly Armstrong (R-ND): Yeah. Yoel Roth: That's right. We generally did not reach out to the FBI to consult on content moderation decisions, especially where they related to domestic activity. It's not that we wouldn't have liked that information, we certainly would have. It's that I don't believe it would have been appropriate for us to consult with the FBI. Rep. Kelly Armstrong (R-ND): In December of 2020, you did a declaration to the Federal Election Commission that the intelligence community expected a leak and a hack operation involving Hunter Biden. Recently, Mark Zuckerberg confirmed that the FBI warned Meta that there was a high effort of Russian propaganda including language specific enough to fit the Hunter Biden laptop security story. You're talking to these people for weeks and months, years prior to this leaking. They have specifically told you in October, that there's going to be a leak potentially involving Hunter Biden's laptop. They legitimately and literally prophesized what happened. And you didn't contact any of them? Yoel Roth: No, sir, I did not. Rep. Kelly Armstrong (R-ND): Did they reach out to you? Yoel Roth: On and around that day, to the best of my recollection, no, they did not. Rep. Kelly Armstrong (R-ND): After the story was taken down and you guys did it, and you personally disagreed with it Ms. Gadde, did you contact them and say is "Hey, is this what you were talking about?" Yoel Roth: If that question was directed to me. No, I did not. Rep. Kelly Armstrong (R-ND): Ms. Gadde, did you talk to anybody from the FBI? Vijaya Gadde: Not to the best of my recollection. Rep. Kelly Armstrong (R-ND): So I guess my question is, what is the point of this program? You have constant communication, they're set up for foreign interference. They've legitimately warned you about this very specific thing. And then all of a sudden, everybody just walks away? 5:18:55 Rep. Melanie Stansbury (D-NM): We are devoting an entire day to this conspiracy theory involving Twitter. Now, the mission of this committee is to root out waste, fraud and abuse and to conduct oversight on behalf of the American people. And if you need any evidence of waste, fraud and abuse, how about the use of this committee's precious time, space and resources to commit to this hearing? 5:58:25 Rep. Eric Burlison (R-MO): Back to Mr. Roth, is it true that Twitter whitelisted accounts for the Department of Defense to spread propaganda about its efforts in the Middle East? Did they give you a list of accounts that were fake accounts and asked you to whitelist those accounts? Yoel Roth: That request was made of Twitter. To be clear, when I found out about that activity, I was appalled by it. I undid the action and my team exposed activity originating from the Department of Defense's campaign publicly. We've shared that data with the world and research about it has been published. 6:07:20 Rep. Jim Jordan (R-OH): Mr. Roth, I want to go back to your statement in your declaration to the FEC "I learned that a hack and leak operation would involve Hunter Biden," who did you learn that from? Yoel Roth: My recollection is it was mentioned by another technology company in one of our joint meetings, but I don't recall specifically whom. Rep. Jim Jordan (R-OH): You don't know the person's name? Yoel Roth: I don't even recall what company they worked at. No, this was a long time ago. Rep. Jim Jordan (R-OH): And you're confident that it was from a tech company, not from someone from the government? Yoel Roth: To the best of my recollection, yes. Rep. Jim Jordan (R-OH): Did anyone from the government, in these periodic meetings you had, did they ever tell you that a hack and leak operation involving Hunter Biden was coming? Yoel Roth: No. Rep. Jim Jordan (R-OH): Did Hunter Biden's name come up at all these meetings? Yoel Roth: Yes, his name was raised in those meetings, but not by the government to the best of my recollection. 6:09:30 Rep. Jim Jordan (R-OH): Mr. Roth, why were you reluctant, based on what I read in the Twitter files, why were you reluctant to work with the GEC? Yoel Roth: It was my understanding that the GEC, or the Global Engagement Center of the State Department, had previously engaged in at least what some would consider offensive influence operations. Not that they were offensive as in bad, but offensive as in they targeted entities outside of the United States. And on that basis, I felt that it would be inappropriate for Twitter to engage with a part of the State Department that was engaged in active statecraft. We were dedicated to rooting out malign foreign interference no matter who it came from. And if we found that the American government was engaged in malign foreign interference, we'd be addressing that as well. 6:13:50 Rep. James Comer (R-KY): Twitter is a private company, but they enjoy special liability protections, Section 230. They also, according to the Twitter files, receive millions of dollars from the FBI, which is tax dollars, I would assume. And that makes it a concern of the Oversight Committee. October 28, 2020 Senate Commerce, Science and Transportation Committee Witnesses: Jack Dorsey, [Former] CEO, Twitter Sundar Pichai, CEO, Alphabet and Google Mark Zuckerberg, CEO, Facebook [Meta] Clips 2:20:40 Sen. Ed Markey (D-MA): The issue is not that the companies before us today are taking too many posts down. The issue is that they’re leaving too many dangerous posts up. In fact, they’re amplifying harmful content so that it spreads like wildfire and torches our democracy. 3:15:40 Mark Zuckerberg: Senator, as I testified before, we relied heavily on the FBI, his intelligence and alert status both through their public testimony and private briefings. Sen. Ron Johnson (R-WI): Did the FBI contact you, sir, than your co star? It was false. Mark Zuckerberg: Senator not about that story specifically. Sen. Ron Johnson (R-WI): Why did you throttle it back? Mark Zuckerberg: They alerted us to be on heightened alert around a risk of hack and leak operations around a release and probe of information. June 18, 2020 Permanent Select Committee on Intelligence Witnesses: Nathaniel Gleicher, Head of Security Policy at Facebook Nick Pickles, Director of Global Public Policy Strategy and Development at Twitter Richard Salgado, Director for Law Enforcement and Information Security at Google 1:40:10 Nathaniel Gleicher: Congressman, the collaboration within industry and with government is much, much better than it was in 2016. I think we have found the FBI, for example, to be forward leaning and ready to share information with us when they see it. We share information with them whenever we see indications of foreign interference targeting our election. The best case study for this was the 2018 midterms, where you saw industry, government and civil society all come together, sharing information to tackle these threats. We had a case on literally the eve of the vote, where the FBI gave us a tip about a network of accounts where they identified subtle links to Russian actors. Were able to investigate those and take action on them within a matter of hours. Music Presented in This Episode by
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Feb 26, 2023 • 1h 30min

CD269: NDAA 2023/Plan Ecuador

The annual war authorization (NDAA) is an excellent opportunity to examine our military’s roles and goals in the world. In this episode, learn about how much of our tax money Congress provided the Defense Department, including how much of that money is classified, how much more money was dedicated to war than was requested, and what they are authorized to use the money for. This episode also examines our Foreign Military Financing programs with a deep dive into a new partner country: Ecuador. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes World Trade System James McWhinney. Oct 10, 2021. Investopedia. Sally Denton. Simon and Schuster: 2017. Littoral Combat Ships Eric Lipton. Feb 4, 2023. The New York Times. Open Secrets. Foreign Military Sales Program March 10, 2022. Senate Foreign Relations Committee. Ecuador Encyclopedia Britannica. Catrin Einhorn and Manuela Andreoni. Updated Jan 20, 2023. The New York Times. June S. Beittel and Rachel L. Martin. Sep 9, 2022. Congressional Research Service. June S. Beittel. Updated Feb 13, 2018. Congressional Research Service. June S. Beittel. Updated April 20, 2017. Congressional Research Services. Debt Default Sarah Anderson and Neil Watkins. Dec 15, 2008. Institute for Policy Studies. Simon Romero. Dec 12, 2008. The New York Times. Violence and Drugs Nov 4, 2022. International Crisis Group. Jun 8, 2022. EcuadorTimes.net. Vanessa Buschschluter. Nov 4, 2021. BBC. Oct 19, 2021. Deutsche Welle. Mining Updated Mar 28, 2022. CGTN America. Bitty A. Roy. Jun 19, 2018. Tropical Conservation Science. Foreign Infrastructure Investments Nov 28, 2022. BNamericas. May 27, 2022. U.S. Trade and Development Agency. Richard Jiménez and Allen Panchana. Dec 16, 2021. Diálogo Chino. Frank Dougherty. Mar 1, 2021. Power. Fishing Joshua Goodman. Nov 2, 2022. Chattanooga Times Free Press. October 2022. U.S. Interagency Working Group on IUU Fishing. Oct 7, 2022. U.S. Agency for International Development. U.S. Coast Guard. Oct 5, 2022. Diálogo Americas. Adam Chandler. Dec 16, 2015. The Atlantic. Cutter Ships Ronald O'Rourke. Updated August 30, 2022. Congressional Research Service. Julian Assange Luke Harding et al. May 15, 2018. The Guardian. Simon Romero. Apr 5, 2011. The New York Times. Chevron Case Zack Budryk. Dec 27, 2022. The Hill. Venezuela Apr 14, 2021. teleSUR. China Trade Deal Jan 3, 2023. Reuters. Sep 23, 2022. The Dialogue. Alexandra Valencia. Feb 5, 2022. Reuters. Business Reforms Ramiro Crespo. Mar 3, 2022. Latin American Advisor. U.S. Ecuador Partnership Isabel Chriboga. Dec 22, 2022. The Atlantic Council. Jim Wiesemeyer. Dec 21, 2022. AgWeb. Dec 19, 2022. Al Jazeera. Isabel Chiriboga. Dec 19, 2022. The Atlantic Council. Nov 1, 2022. Office of the United States Trade Representative. Oct 19, 2022. U.S. Embassy & Consulate in Ecuador. Referendum Sebastián Hurtado. Dec 19, 2022. Americas Quarterly. State Enterprise Resignation Jan 18, 2023. Buenos Aires Times. Lithium Triangle John Price. Aug 22, 2022. Americas Market Intelligence. Colombia Catherine Osborn. Jan 20, 2023. Foreign Policy. María Paula Rubiano A. Nov 16, 2022. BBC. June S. Beittel. Updated December 16, 2021. Congressional Research Service. Tax Reform Ricardo Ávila. Nov 23, 2022. Americas Quarterly. Cesar Vence and Megan Bridges. Oct 26, 2022. U.S. Chamber of Commerce. U.S. Chamber of Commerce. Relationship with U.S. Cancer Treatment Centers of America. Jul 8, 2021. City of Hope. Kejal Vyas. May 4, 2020. The Wall Street Journal. Luoping Zhang et al. Mutation Research/Reviews in Mutation Research Vol. 781, July–September 2019, pp. 186-206. Jun 26, 2018. Syria Mehdi Hasan. Oct 26, 2019. The Intercept. Jan 20, 2021. U.S. Department of State, Bureau of Near Eastern Affairs. Mark Mazzetti et al. Aug 2, 2017. The New York Times. C. J. Chivers and Eric Schmitt. Mar 24, 2013. The New York Times. Government Funding Dec 23, 2022. House Appropriations Committee Democrats. Senate Appropriations Committee. Senate Appropriations Committee. Laws Bills Audio Sources January 19, 2023 The Atlantic Council Clips 17:51 Gen. Laura Richardson: The Belt and Road Initiative (BRI) that has been ongoing for the last over a decade in this region, 21 of 31 countries have signed on to this Belt and Road Initiative. I could take Argentina last January, the most recent signatory on to the Belt and Road Initiative, and $23 billion in infrastructure projects that signatory and signing on to that. But again, 21 of 31 countries. There are 25 countries that actually have infrastructure projects by the PRC. Four that aren't signatories of the BRI, but they do actually have projects within their countries. But not just that. Deepwater ports in 17 countries. I mean, this is critical infrastructure that's being invested in. I have the most space enabling infrastructure in the Western Hemisphere in Latin America and the Caribbean. And I just caused question, you know, why? Why is all of this critical infrastructure being invested in so heavily? In terms of telecommunications, 5G, I've got five countries with the 5G backbone in this region. I've got 24 countries with the PRC Huawei 3G-4G. Five countries have the Huawei backbone infrastructure. If I had to guess, they'll probably be offered a discount to upgrade and stay within the same PRC network. And so very, very concerning as we work with our countries. 20:00 Gen. Laura Richardson: What I'm starting to see as well is that this economy...the economy impacts to these partner nations is affecting their ability to buy equipment. And you know, as I work with our partner nations, and they invest in U.S. equipment, which is the best equipment, I must say I am a little biased, but it is the best equipment, they also buy into the supply chain of spare parts, and all those kinds of things that help to sustain this piece of equipment over many, many years. So in terms of the investment that they're getting, and that equipment to be able to stay operational, and the readiness of it, is very, very important. But now these partner nations, due to the impacts of their economy, are starting to look at the financing that goes along with it. Not necessarily the quality of the equipment, but who has the best finance deal because they can't afford it so much up front. 24:15 Gen. Laura Richardson: This region, why this region matters, with all of its rich resources and rare earth elements. You've got the lithium triangle which is needed for technology today. 60% of the world's lithium is in the lithium triangle: Argentina Bolivia, Chile. You just have the largest oil reserves -- light, sweet, crude -- discovered off of Guyana over a year ago. You have Venezuela's resources as well with oil, copper, gold. China gets 36% of its food source from this region. We have the Amazon, lungs of the world. We have 31% of the world's freshwater in this region too. I mean, it's just off the chart. 28:10 Gen. Laura Richardson: You know, you gotta question, why are they investing so heavily everywhere else across the planet? I worry about these dual-use state-owned enterprises that pop up from the PRC, and I worry about the dual use capability being able to flip them around and use them for military use. 33:30 Interviewer: Russia can't have the ability to provide many of these countries with resupply or new weapons. I mean, they're struggling to supply themselves, in many cases, for Ukraine. So is that presenting an opportunity for maybe the US to slide in? Gen. Laura Richardson: It is, absolutely and we're taking advantage of that, I'd like to say. So, we are working with those countries that have the Russian equipment to either donate or switch it out for United States equipment. or you Interviewer: Are countries taking the....? Gen. Laura Richardson: They are, yeah. 45:25 Gen. Laura Richardson: National Guard State Partnership Program is huge. We have the largest National Guard State Partnership Program. It has come up a couple of times with Ukraine. Ukraine has the State Partnership Program with California. How do we initially start our great coordination with Ukraine? It was leveraged to the National Guard State Partnership Program that California had. But I have the largest out of any of the CoCOMMs. I have 24 state partnership programs utilize those to the nth degree in terms of another lever. 48:25 Gen. Laura Richardson: Just yesterday I had a zoom call with the U.S. Ambassadors from Argentina and Chile and then also the strategy officer from Levant and then also the VP for Global Operations from Albermarle for lithium, to talk about the lithium triangle in Argentina, Bolivia and Chile and the companies, how they're doing and what they see in terms of challenges and things like that in the lithium business and then the aggressiveness or the influence and coercion from the PRC. June 15, 2022 Clips Rep. Jackie Speier (D-CA): The GAO found that the LCS had experienced engine failure in 10 of the 11 deployments reviewed. Rep. Jackie Speier (D-CA): One major reason for the excessive costs of LCS: contractors. Unlike other ships where sailors do the maintenance, LCS relies almost exclusively on contractors who own and control the technical data needed to maintain and repair. Rep. Jackie Speier (D-CA): Our top priority and national defense strategy is China and Russia. We can't waste scarce funds on costly LCS when there are more capable platforms like destroyers, attack submarines, and the new constellation class frigate. May 25, 2022 Senate Appropriations Committee, Subcommittee on Defense Witnesses: Carlos Del Toro, Secretary, United States Navy Admiral Michael M. Gilday, Chief of Naval Operations General David H. Berger, Commandant of the Marine Corps Clips Sen. Jerry Moran (R-KS): I think the christening was just a few years ago...maybe three or so. So the fact that we christened the ship one year and a few years later we're decommissioning troubles me. Sen. Jerry Moran (R-KS): Are there not other uses, if there's something missing from this class of ships, that we would avoid decommissioning? Adm. Michael Gilday: We need a capable, lethal, ready Navy more than we need a larger Navy that's less capable, less lethal, and less ready. And so, unfortunately the Littoral combat ships that we have, while the mechanical issues were a factor, a bigger factor was was the lack of sufficient warfighting capability against a peer competitor in China. Adm. Michael Gilday: And so we refuse to put an additional dollar against that system that wouldn't match the Chinese undersea threat. Adm. Michael Gilday: In terms of what are the options going forward with these ships, I would offer to the subcommittee that we should consider offering these ships to other countries that would be able to use them effectively. There are countries in South America, as an example, as you pointed out, that would be able to use these ships that have small crews. April 25, 2022 March 31, 2022 Senate Foreign Relations Committee Witnesses: Kerri Hannan, Deputy Assistant Secretary for Public Diplomacy, Policy, Planning, and Coordination, Bureau of Western Hemisphere Affairs, U.S. Department of State Peter Natiello, Senior Deputy Assistant Administrator, Latin America and Caribbean Bureau, U.S. Agency for International Development Andrew M. Herscowitz, Chief Development Officer, U.S. International Development Finance Corporation Margaret Myers, Director of the Asia & Latin America Program, Inter-American Dialogue Evan Ellis, Senior Associate, Center for Strategic and International Studies Clips 24:20 Sen. Tim Kaine (D-VA): Ecuador for example, nearly 20 years ago, former President Rafael Correa promised modernization for Ecuador, embracing Chinese loans and infrastructure projects in exchange for its oil. Fast forward to today. Ecuador now lives with the Chinese financed and built dam that's not fully operational despite being opened in 2016. The Coca Codo Sinclair Dam required over 7000 repairs, it sits right next to an active volcano, and erosion continues to damage the dam. The dam also caused an oil spill in 2020 that has impacted indigenous communities living downstream. And all that's on top of the billions of dollars that Ecuador still owes China. 56:40 Peter Natiello: One example that I could provide is work that we've done in Ecuador, with Ecuadorian journalists, to investigate, to analyze and to report on the issue of illegal and unregulated fishing off Ecuador's coast. And we do that because we want to ensure that Ecuadorian citizens have fact-based information upon which they can make decisions about China and countries like China, and whether they want their country working with them. 1:23:45 Sen. Ed Markey (D-MA): There are 86 million tons of identified lithium resources on the planet. On the planet. 49 million of the 86 million are in the Golden Triangle. That's Argentina, Bolivia, Chile. So what's our plan? 1:54:10 Evan Ellis: In security engagement, the PRC is a significant provider of military goods to the region including fighters, transport aircraft, and radars for Venezuela; helicopters and armored vehicles for Bolivia; and military trucks for Ecuador. 2:00:00 Margaret Myers: Ecuador is perhaps the best example here of a country that has begun to come to terms with the challenges associated with doing business with or interacting from a financial or investment perspective with China. And one need only travel the road from the airport to Quito where every day there are a lot of accidents because of challenges with the actual engineering of that road to know why many Ecuadorians feel this way. March 10, 2022 Senate Committee on Foreign Relations Witnesses: Jessica Lewis, Assistant Secretary of State for Political-Military Affairs, U.S. Department of State Mara Elizabeth Karlin, Assistant Secretary of Defense for Strategy, Plans and Capabilities, U.S. Department of Defense Clips 1:23:17 Sen. Chris Murphy (D-CT): According to one study, the DoD manages 48 of the 50 new security assistance programs that were created after the 9/11 attacks and out of the 170 existing security assistance programs today, DOD manages 87, a whopping 81% of those programs. That is a fundamental transition from the way in which we used to manage security assistance. And my worry is that it takes out of the equation the people who have the clearest and most important visibility on the ground as to the impact of that security assistance and those transfers. Sen. Chris Murphy: We just spent $87 billion in military assistance over 20 years in Afghanistan. And the army that we supported went up in smoke overnight. That is an extraordinary waste of U.S. taxpayer dollars, and it mirrors a smaller but similar investment we made from 2003 to 2014 in the Iraqi military, who disintegrated when they faced the prospect of a fight against ISIS. Clearly, there is something very wrong with the way in which we are flowing military assistance to partner countries, especially in complicated war zones. You've got a minute and 10 seconds, so maybe you can just preview some lessons that we have learned, or the process by which we are going to learn lessons from all of the money that we have wasted in Iraq and Afghanistan. Jessica Lewis: Senator, I'll be brief so that Dr. Karlin can jump in as well. I think we do need to learn lessons. We need to make sure, as I was just saying to Senator Cardin, that when we provide security assistance, we also look not just at train and equip, but we look at other things like how the Ministries of Defense operate? Is their security sector governant? Are we creating an infrastructure that's going to actually work? Mara Elizabeth Karlin: Thank you for raising this issue, Senator. And I can assure you that the Department of Defense is in the process of commissioning a study on this exact issue. I will just say in line with Assistant Secretary Lewis, it is really important that when we look at these efforts, we spend time assessing political will and we do not take an Excel spreadsheet approach to building partner militaries that misses the higher order issues that are deeply relevant to security sector governance, that will fundamentally show us the extent to which we can ultimately be successful or not with a partner. Thank you. Sen. Chris Murphy (D-CT): You know, in Iraq, last time I was there, we were spending four times as much money on security assistance as we were on non-security assistance. And what Afghanistan taught us amongst many things, is that if you have a fundamentally corrupt government, then all the money you're flowing into the military is likely wasted in the end because that government can't stand and thus the military can't stand. So it also speaks to rebalancing the way in which we put money into conflict zones, to not think that military assistance alone does the job. You got to be building sustainable governments that serve the public interests in order to make your security assistance matter and be effective. Thank you, Mr. Chairman. March 8, 2022 House Armed Services Committee Witnesses: Melissa G. Dalton, Assistant Secretary of Defense for Homeland Defense and Hemispheric Affairs Office of the Secretary of Defense General Laura Richardson, USA, Commander, U.S. Southern Command General Glen D. VanHerck, USAF, Commander, U.S. Northern Command and North American Aerospace Defense Command Clips 17:30 General Laura Richardson: Colombia, for example, our strongest partner in the region, exports security by training other Latin American militaries to counter transnational threats. 1:20:00 General Laura Richardson: If I look at what PRC (People's Republic of China) is investing in the [SOUTHCOM] AOR (Area of Responsibility), over a five year period of 2017 to 2021: $72 billion. It's off the charts. And I can read a couple of the projects. The most concerning projects that I have are the $6 billion in projects specifically near the Panama Canal. And I look at the strategic lines of communication: Panama Canal and the Strait of Magellan. But just to highlight a couple of the projects. The nuclear power plant in Argentina: $7.9 billion. The highway in Jamaica: $5.6 billion. The energy refinery in Cuba, $5 billion. The highway in Peru: $4 billion. Energy dam in Argentina: $4 billion, the Metro in Colombia: $3.9 billion. The freight railway in Argentina: $3 billion. These are not small projects that they're putting in this region. This region is rich in resources, and the Chinese don't go there to invest, they go there to extract. All of these projects are done with Chinese labor with host nation countries'. November 30, 2021 Senate Foreign Affairs Committee Witnesses: Brian A. Nichols, Assistant Secretary of State for Western Hemisphere Affairs, U.S. Department of State Todd D. Robinson, Assistant Secretary of State for International Narcotics and Law Enforcement Affairs, U.S. Department of State Clips 1:47:15 Sen. Ted Cruz (R-TX): I'd like to start with Mexico. I am increasingly concerned that the Mexican government is engaged in a systematic campaign to undermine American companies, and especially American energy companies that have invested in our shared prosperity and in the future of the Mexican people and economy. Over the past five months, Mexican regulators have shut down three privately owned fuel storage terminals. Among those they shut down a fuel terminal and Tuxpan, which is run by an American company based in Texas, and which transports fuel on ships owned by American companies. This is a pattern of sustained discrimination against American companies. And I worry that the Mexican government's ultimate aim is to roll back the country's historic 2013 energy sector liberalisation reforms in favor of Mexico's mismanaged and failing state-owned energy companies. The only way the Mexican government is going to slow and reverse their campaign is if the United States Government conveys clearly and candidly that their efforts pose a serious threat to our relationship and to our shared economic interests. 2:01:50 Sen. Cory Booker (D-NJ): Mr. Nichols, can you can you just be a little more specific about the tactics of the GEC? What are some of the specific activities they're doing? And what more would you like to see them do? Brian A. Nichols: The Global Engagement Center both measures public opinion and social media trends throughout the world. They actively work to counter false messages from our strategic competitors. And they prepare media products or talking points that our embassies and consulates around the hemisphere can use to combat disinformation. I think they do a great job. Obviously, it's a huge task. So the the resources that they have to bring to bear to this limit, somewhat, the ability to accomplish those goals, but I think they're doing vital, vital work. 2:13:30 Todd D. Robinson: We are, INL (International Narcotics and Law Enforcement) are working very closely with the Haitian National Police, the new Director General, we are going to send in advisors. When I was there two weeks ago, I arrived with -- they'd asked for greater ability to get police around the city -- I showed up with 19 new vehicles, 200 new protective vests for the police. The 19 was the first installment of a total of 60 that we're going to deliver to the Haitian National Police. We're gonna get advisors down there to work with the new SWAT team to start taking back the areas that have been taken from ordinary Haitians. But it's going to be a process and it's going to take some time. Sen. Bob Menendez: Well, first of all, is the Haitian National Police actually an institution capable of delivering the type of security that Hatians deserve? Todd D. Robinson: We believe it is. It's an institution that we have worked with in the past. There was a small brief moment where Haitians actually acknowledged that the Haitian National Police had gotten better and was more professional. Our goal, our long term goal is to try to bring it back to that Sen. Bob Menendez: How much time before we get security on the ground? Todd D. Robinson: I can't say exactly but we are working as fast as we can. Sen. Bob Menendez: Months, years? Todd D. Robinson: Well, I would hope we could do it in less than months. But we're working as fast as we can. January 25, 2018 Senate Committee on Armed Services Witnesses: Dr. Henry A. Kissinger, Chairman of Kissinger Associates and Former Secretary of State Dr. George P. Shultz, Thomas W. and Susan B. Ford Distinguished Fellow, Hoover Institution, Stanford University and Former Secretary of State Richard L. Armitage, President, Armitage International and Former Deputy Secretary of State Clips Dr. George Shultz: Small platforms will carry a very destructive power. Then you can put these small platforms on drones. And drones can be manufactured easily, and you can have a great many of them inexpensively. So then you can have a swarm armed with lethal equipment. Any fixed target is a real target. So an airfield where our Air Force stores planes is a very vulnerable target. A ship at anchor is a vulnerable target. So you’ve got to think about that in terms of how you deploy. And in terms of the drones, while such a system cannot be jammed, it would only serve to get a drone—talking about getting a drone to the area of where its target is, but that sure could hit a specific target. At that point, the optical systems guided by artificial intelligence could use on-board, multi-spectral imaging to find a target and guide the weapons. It is exactly that autonomy that makes the technologic convergence a threat today. Because such drones will require no external input other than the signature of the designed target, they will not be vulnerable to jamming. Not requiring human intervention, the autonomous platforms will also be able to operate in very large numbers. Dr. George Shultz: I think there’s a great lesson here for what we do in NATO to contain Russia because you can deploy these things in boxes so you don’t even know what they are and on trucks and train people to unload quickly and fire. So it’s a huge deterrent capability that is available, and it’s inexpensive enough so that we can expect our allies to pitch in and get them for themselves. Dr. George Shultz: The creative use of swarms of autonomous drones to augment current forces would strongly and relatively cheaply reinforce NATO, as I said, that deterrence. If NATO assists frontline states in fielding large numbers of inexpensive autonomous drones that are pre-packaged in standard 20-foot containers, the weapons can be stored in sites across the countries under the control of reserve forces. If the weapons are pre-packaged and stored, the national forces can quickly deploy the weapons to delay a Russian advance. So what’s happening is you have small, cheap, and highly lethal replacing large, expensive platforms. And this change is coming about with great rapidity, and it is massively important to take it into account in anything that you are thinking about doing. June 15, 2017 House Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade Witnesses: Tina Kaidanow, Acting Assistant Secretary, Bureau of Political-Military Affairs, U.S. Department of State Vice Admiral Joseph Rixey, Director, U.S. Defense Security Cooperation Agency Clips 14:40 Tina Kaidanow: Arms Transfers constitute an element of foreign policy. We therefore take into account foreign policy considerations as we contemplate each arms transfer or sale, including specifically, the appropriateness of the transfer in responding to U.S and recipient security needs; the degree to which the transfer supports U.S. strategic foreign policy and defense interests through increased access and influence; allied burden sharing and interoperability; consistency with U.S. interests regarding regional stability; the degree of protection afforded by the recipient company to our sensitive technology; the risk that significant change in the political or security situation of the recipient country could lead to inappropriate end use or transfer; and the likelihood that the recipient would use the arms to commit human rights abuses or serious violations of international humanitarian law, or retransfer the arms to those who would commit such abuses. As a second key point, arms transfers support the U.S. Defense industrial base and they reduce the cost of procurement for our own U.S. military. Purchases made through the Foreign Military Sales, known as the FMS, system often can be combined with our Defense Department orders to reduce unit costs. Beyond this, the US defense industry directly employs over 1.7 million people across our nation. 20:20 Vice Admiral Joseph Rixey: FMS is the government-to-government process through which the U.S. government purchases defense articles, training, and services on behalf of foreign governments, authorized in the Arms Export Control Act. FMS is a long standing security cooperation program that supports partner and regional security, enhances military-to-military cooperation, enables interoperability and develops and maintains international relationships. Through the FMS process, the US government determines whether or not the sale is of mutual benefit to us and the partner, whether the technology can and will be protected, and whether the transfer is consistent with U.S. conventional arms transfer policy. The FMS system is actually a set of systems in which the Department of State, Department of Defense, and Congress play critical roles. The Department of Defense in particular executes a number of different processes including the management of the FMS case lifecycle which is overseen by DSCA (Defense Security Cooperation Agency). Technology transfer reviews, overseen by the Defense Technology Security Administration, and the management of the Defense Acquisition and Logistics Systems, overseen by the Office of the Undersecretary of Defense for Acquisition, Technology and Logistics, and the military departments. This process, or a version of it, also serves us well, in the DoD Title X Building Partnership Capacity arena, where the process of building a case, validating a requirement and exercising our U.S. acquisition system to deliver capability is modeled on the FMS system. I want to say clearly that overall the system is performing very well. The United States continues to remain the provider of choice for our international partners, with 1,700 new cases implemented in Fiscal Year 2016 alone. These new cases, combined with adjustments to existing programs, equated to more than $33 billion in sales last year. This included over $25 billion in cases funded by our partner nations' own funds and approximately $8 billion in cases funded by DOD Title X program or Department of State's Appropriations. Most FMS cases move through the process relatively quickly. But some may move more slowly as we engage in deliberate review to ensure that the necessary arms transfer criteria are met. 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Feb 12, 2023 • 1h 18min

CD268: Disappearing Oversight: The NFL Sexual Misconduct Investigation

In December, the House Oversight and Reform Committee released a final report from their investigation into allegations of sexual assault committed by Washington Commanders team owner Dan Snyder. In this episode, you will hear the testimony and discover what the NFL did - or didn’t do - to punish the people who sexually harassed their employees. You will also learn that in the process of researching this episode, the Congressional Dish team discovered that the hearings related to this investigation, among others, have recently vanished from the committee archives, raising questions about how that happened and what needs to be done to prevent our sources from being disappeared. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Washington Commanders-Dan Snyder Background Adam Kilgore and Roman Stubbs. Jul 9, 2020. The Washington Post. Scott Allen. May 24, 2019. The Washington Post. Full House Committee on Oversight and Reform Report Dec 8, 2022. The New York Times. NFL Investigation Sally Jenkins. Jul 1, 2021. The Washington Post. Jul 1, 2021. NFL. Dan Snyder Misconduct Will Hobson and Liz Clarke. Dec 14, 2021. The Washington Post. Will Hobson et al. Jul 2, 2021. The Washington Post. Nicki Jhabvala and Mark Maske. Jun 29, 2021. The Washington Post. Will Hobson et al. Dec 22, 2020. The Washington Post. Will Hobson et al. Aug 26, 2020. The Washington Post. Will Hobson and Liz Clarke. Jul 16, 2020. The Washington Post. Dan Snyder Money Edward Sutelan. Nov 14, 2022. The Sporting News. Lauren Schwahn. Dec 2, 2022. Nerd Wallet. Dave Portnoy Superbowl Arrest Danny Small. Feb 4, 2019. Elite Sports NY. NFL Ownership and Potential Commanders Sale Scott Polacek. Feb 8, 2023. Bleacher Report. Joe Rivera. Nov 2, 2022. The Sporting News. Wikipedia. Past Congressional Oversight of Sporting Organizations Associated Press. Jul 28, 2007. MSNBC via the Wayback Machine. House Government Reform and Oversight Committee (109th Congress). March 17, 2005. C-SPAN. NFL Nonprofit Status and Lobbying IRS. Open Secrets. Matt Johnson. Jul 15, 2022. Sportsnaut. House Control Walter Shapiro. Feb 9, 2023. The New Republic. Laws Bills Hearings June 22, 2022 House Oversight and Reform Committee Witness: Rodger Goodell:, Commissioner, National Football League Clips 3:05 Rep. Carolyn Maloney (D-NY): We also invited Daniel Snyder to testify today, but rather than show up and take responsibility for his actions, he chose to skip town. Apparently Mr. Snyder is in France, where he has docked his luxury yacht near a resort town. 3:45 Rep. Carolyn Maloney (D-NY): According to top executives, he fired women, but not men, who engaged in relationships with other employees while defending male executives accused of sexual harassment. And he kept employees from speaking out through a culture of fear. As one longtime employee described Mr. Snyder's tactics: "If you don't obey, intimidate. If you still don't obey, terminate." Finally, the employee added, "If that didn't work, buy them off." The Committee has also uncovered evidence that Mr. Snyder conducted a shadow investigation to target his accusers, pin the blame on others, and influence the NFL's own internal review. He filed phony lawsuits to collect private phone records, emails, and text messages. 7:10 Rep. Carolyn Maloney (D-NY): Our first bill, the Accountability for Workplace Misconduct Act, will require employers to conduct thorough investigations and share the outcome with victims, and it will prohibit employers from using Non-disclosure Agreements to conceal workplace misconduct -- one of Dan Snyder's favorite tactics. Our second bill is the Professional Images Protection Act. Our investigation confirmed that the Commanders secretly created lewd videos of cheerleaders for the private enjoyment of Dan Snyder. That is despicable and our bill will create notice and consent requirements for employers who use their employees' professional images. 23:10 Rodger Goodell: Hi I'm Roger Goodell commissioner of the National Football League and I'm here today to discuss the NFL's efforts to promote safe and respectful workplaces, including at the Washington Commanders. 23:25 Rodger Goodell: The Commanders are one of 32 NFL clubs, each of which is managed by its ownership and executives and have their own workplaces and policies. Two years ago, the Commanders asked me to recommend independent counsel to address workplace issues and recommend changes to improve the workplace culture. We identified several candidates and the club selected Beth Wilkinson, a distinguished former Federal Prosecutor. Approximately six weeks later, the club asked my office to assume oversight of the Wilkinson firm's work. The Wilkinson firm conducted a comprehensive review of the workplace at the club, interviewing more than 150 witnesses. As a result, we gained a clearer understanding of what the workplace had been at the Commanders, how it had begun to change, and what further steps were needed to support our ultimate goal of transforming that workplace to one that is safe and productive for all of its employees. 25:05 Rodger Goodell: It is clear to me that the workplace in Washington was unprofessional and unacceptable in numerous respects: bullying, widespread disrespect toward colleagues, use of demeaning language, public embarrassment and harassment. Moreover, for a prolonged period of time, the Commanders had a woefully deficient HR function, particularly with respect to reporting practices and record keeping. As a result, we imposed unprecedented discipline on the club, monetary penalties of well over $10 million, and requirements that the club implement a series of recommendations and allow an outside firm to conduct regular reviews of their workplace. In addition, for the past year, Daniel Snyder has not attended league or committee meetings, and to the best of my knowledge has not been involved in day to day operations at the Commanders. The cheerleader program has been entirely revamped and it's now a co-ed dance team under new leadership. And the most recent independent workplace report, which we have shared with the Committee, confirms that an entirely new, highly skilled and diverse management team is in place, and that there has been, "substantial transformation of the team's culture, leadership and human resources practices." 26:35 Rodger Goodell: We did not receive a written report of Miss Wilkinson's findings for compelling reasons that continue to this day. A critical element of any workplace review is broad participation by both current and former employees. Encouraging employees to come forward and share their experiences, which were frequently painful and emotional, was essential to identifying both the organization's failures and how to fix them. To encourage this participation, Ms. Wilkinson promised confidentiality to any current or former employee. For this reason, shortly after we assumed oversight of Miss Wilkinson's work, we determined that a comprehensive oral briefing was best to allow us to receive the information necessary both to evaluate the workplace as it was, and to ensure that the team put in place the policies and processes to reform that workplace, all while preserving the confidentiality of those who participated in the investigation. 28:35 Rodger Goodell: When the committee has asked questions or requested documents which could violate witness privacy, we have asserted privilege. We will continue to do so to safeguard our commitment. 28:45 Rodger Goodell:: Earlier this year, the committee heard testimony from several former employees that included new and direct allegations against Mr. Snyder. We properly engaged former U.S. Attorney Mary Jo White to investigate those allegations. Because those new allegations were brought to the committee in a public setting, we will share the results of that investigation when it's completed and will take additional disciplinary action if warranted. 29:50 Rodger Goodell: Finally, I want to address the Committee's review of Non-disclosure Agreements. Our policies do not allow a club to use an NDA to bar someone from participating in a league investigation, and nobody who wished to speak to the Wilkinson firm was prevented from doing so by an NDA. 36:45 Rep. Carolyn Maloney (D-NY): Mr. Snyder has not been held accountable. His refusal to testify sends a clear message that he is more concerned about protecting himself than coming clean with the American people. If the NFL is unwilling or unable to hold Mr. Snyder accountable, then I am prepared to do so. That is why I am announcing now my intent to issue a subpoena for the testimony of Mr. Snyder for a deposition next week. The committee will not be deterred in its investigation to uncover the truth of workplace misconduct at the Washington Commaders. 38:20 Rodger Goodell: While I have the microphone I'd also like to say, respectfully, that Dan Snyder has been held accountable. As I mentioned in the opening, he faced unprecedented discipline, including financial fines, being removed and away from the team at his request for a period of time up to the year now already, and secondly, and more importantly, transformation of that organization that is going on in the last year, which is really important. 42:25 Rep. Virginia Foxx (R-NC): This committee has no jurisdiction over private entities. Our jurisdiction is on government entities. 1:10:40 Rep. Raja Krishnamoorthi (D-IL): Now, sir, you had mentioned that the reason for the press release as opposed to a detailed finding, as you had in the other cases was because of privacy concerns. Isn't that right? Rodger Goodell: That was one of the issues. Yes. Rep. Raja Krishnamoorthi (D-IL): However, I have this 148 Page Miami Dolphins harassment report that you did where you have redacted the names of various individuals out of privacy concerns. And so it is possible to release a detailed report and at the same time protect people's privacy, yet you chose not to do so in this particular case with the Commanders. Rep. Glenn Grothman (R-WI): Study after study shows there is not systemic racism in our police departments. There is a narrative out there, for example, who to this day mislead the public as to what happened in Ferguson. The Black Lives Matter movement fanned the flames out there even though Barack Obama's own Justice Department found that shooting was justified and you have kind of piled on with the narrative that we have a fundamental problem. Rep. Jackie Speier (D-CA): So non disclosure agreements by each of your various teams are not being used. Is that what you're saying? Rodger Goodell: No, I'm not saying that at all. Rep. Carolyn Maloney (D-NY): The gentlelady's time has expired. The gentleman may answer her question. Rodger Goodell: I'm not saying that. State by state...our teams operate in different states that have different laws. So the federal legislation is something that we're willing to work with the Committee on it. February 3, 2022 House Oversight and Reform Committee Witnesses: Emily Applegate, Former Marketing Coordinator, Washington Commanders Brad Baker, Former Manager and Producer of Video, Washington Commanders Melanie Coburn, Former Director of Marketing, Cheerleaders, Washington Commanders Rachel Engelson, Former Director of Marketing and Client Relations, Washington Commanders Tiffani Johnston, Former Manager of Marketing, Washington Commanders Ana Nunez, Former Coordinator of Business Development, Washington Commanders Clips 9:45 Rep. James Comer (R-KY): Instead of adhering to our committee's mission to root out waste, fraud, and abuse and mismanagement in the federal government, Democrats instead are holding a roundtable about the work culture in one single private organization. 10:00 Rep. James Comer (R-KY): Make no mistake, no one should face harassment at work and bad actors must be held accountable. But it's unclear why examining harassment that took place a decade ago in one private workplace warrants oversight from this committee. This issue is best handled by human resources and the courts, not Congress. 10:25 Rep. James Comer (R-KY): Further, because of the bravery of the women testifying before us today, the culture of the franchise has completely turned around. And I want to thank the ladies for being here today. After the NFL investigation into the football team last year, Commissioner Roger Goodell levied the highest fine on an owner in the history of the sport, and suspended the owner from team's operations indefinitely. In addition, the commissioner made a series of recommendations to the team to improve its culture. This week, an independent audit confirmed those recommendations are working. Madam Chair, I'd like to submit the audit for the record. 11:30 Rep. James Comer (R-KY): Because of the Commissioner's leadership, bad actors have been held accountable and the culture at the football team has improved. So why are Democrats utilizing committee resources today to examine an issue that is on the path to resolution and is outside this committee's jurisdiction? 18:15 Rep. Carolyn Maloney (D-NY): Our first participant is Melanie Coburn who was a cheerleader for the Washington Football Team from 1997 to 2001 and was the director of Marketing and Marketing Coordinator from 2001 to 2011. 18:30 Rep. Carolyn Maloney (D-NY): Then we will hear from Tiffany Johnston, who was a cheerleader for the Washington football team from 2007 to 2008, and a Marketing Manager and Marketing and Events Coordinator for Club Level Tickets from 2002 to 2008. 18:50 Rep. Carolyn Maloney (D-NY): Next we will hear from Brad Baker, who was a Producer at the Washington football team from 2007 to 2008 and a Video Production Manager from 2008 to 2009. 19:05 Rep. Carolyn Maloney (D-NY): Next we will hear from Ana Nunez, who was a Coordinator of Business Development and Client Service and an Account Executive at the Washington football team from 2015 to 2019. 19:20 Rep. Carolyn Maloney (D-NY): Next, we will hear from Rachel Engelson, who started as an intern for the Washington football team in 2010 and then became a Customer Service Representative, a Manager of Premium Client Services, the Director of Marketing and Client Relations, and the Director of Client Services from 2011 to 2019. 19:40 Rep. Carolyn Maloney (D-NY): Finally, we will hear from Emily Applegate who was a Marketing Coordinator, Premium Client Services Coordinator, and Ticket Sales Representative at the Washington Football Team from 2014 to 2015. 21:00 Melanie Coburn: At cheerleader auditions one year, Dan Snyder ordered the director of the squad to parade the ladies onto the field while he and his friends gawked from a suite through binoculars. The women were directed to turn around slowly, as if they were cattle being examined for sale. One of the women cried on the sidelines because she didn't understand what was happening. 21:30 Melanie Coburn: Over the years, it became clear that Dan Snyder and his male executives were far too interested in the cheerleaders. Eventually, Dan himself had the final say of who made the team and who got months in the calendar. Unbelievably, he requested binders of photographs for auditions and the calendar so that he could choose who to cut based on looks, not talent. One year he cut 10 veterans who otherwise would have made the team based on their skill and experience, evidently because they weren't the prettiest in his opinion. It was known as the Tyson's massacre. 22:10 Melanie Coburn: During calendar production one year, a male Executive took unedited prints off the graphic designer's desk despite my warnings to protect them. One of these compromising full size photos was one of the team's most loyal employees, and my dear friend. She's sitting next to me today. I'm still haunted by this. And at the time, there was no HR department or any reporting mechanism for this abusive behavior. 23:05 Melanie Coburn: I felt compelled to come forward publicly when I read the second shocking [Washington] Post article that revealed two lewd videos of the cheerleaders that were secretly created. I was physically ill when I read that piece. "The Good Bits" videos produced at the behest of Dan Snyder were secretly made from footage taken at our calendar shoots. We trusted the production team to capture footage and keep it safe. Little did we know they were zooming in on private parts and keeping cameras rolling during costume changes. I've cried with the women in these videos as they explain the horror of seeing themselves in what is essentially a soft porn video soundtracked to Dan Snyder's favorite bands. These women remain traumatized. 24:35 Melanie Coburn: Dan Snyder rules by fear. We've seen Dan's vindictive wrath for years, such as when he nearly bankrupted the Washington City Paper for an unflattering article. He sent private investigators to the homes of a dozen former cheerleaders last year and I got calls from these terrified women who didn't understand why PIs were showing up on their doorsteps. He offered hush money to a group of us in exchange for our silence last February, but we declined. This was offensive, and certainly felt like intimidation and witness tampering to us. 26:10 Tiffani Johnston: Hi, my name is Tiffani Johnston. I appreciate you all for taking the time to hear about the constant workplace harassment that occurred at the Washington Football Team for over two decades. I personally experienced it multiple times during my eight year tenure as both a cheerleader and a marketing manager. 26:50 Ana Nunez: Hi, my name is Ana Nunez and I worked in sales for the Washington football team for almost four years. 28:20 Tiffani Johnston: I learned on one specific occasion that when I was asked by my boss to attend a networking event, and oh to dress cute, it was actually an orchestration by him and Dan Snyder to put me in a compromising sexual situation. I learned that placing me strategically by the owner at a work dinner after this networking event was not for me to discuss business, but to allow him, Dan Snyder, to place his hand on my thigh under the table. I learned how to discreetly remove a man's unwanted hand from my thigh at a crowded dinner table at a busy restaurant to avoid a scene. I learned that job survival meant I should continue my conversation with another coworker, rather than call out Dan Snyder right then in the moment. I also learned later that evening how to awkwardly laugh when Dan Snyder aggressively pushed me towards his limo with his hand on my lower back, encouraging me to ride with him to my car. I learned how to continue to say no, even though a situation was getting more awkward, uncomfortable and physical. I learned that the only reason Dan Snyder removed his hand from my back and stop pushing me towards his limo was because his attorney intervened and said "Dan, Dan, this is a bad idea. A very bad idea, Dan." I learned that I should remove myself from Dan's grip while his attorney was distracting him. I also learned at that moment during an unspoken conversation between my boss and I that my boss was not there to look out for me. He was there to listen to any directive his boss, Dan Snyder, had given to him, at my cost. The next day I learned, when I told a senior coworker about Dan Snyder's sexual advance, that I should "not repeat this story to anyone outside this office door." That was when I also learned there was no one to go to about Dan Snyder's advance, no path to record the incident. So I learned to move on. 30:15 Tiffani Johnston: In the last couple of years, I learned that Dan Snyder, via Senior Vice President, demanded my unedited, enlarged lingerie calendar photo be sent to his office. I learned that this demand was made urgently because they knew that the graphic artists was getting ready to Photoshop my personal areas before the edited proof went before all of the senior VPs and Dan Snyder for approval. 31:40 Brad Baker: My name is Brad Baker and I worked for the Washington Football Team from 2007 to 2009 in the Video Production Department. 32:40 Brad Baker: In the early summer of 2008, a normal production meeting with the video department was wrapping up when Larry Michael, then Executive Producer of Media and one of Snyder's top lieutenants, asked me and two other male producers to stay behind and shut the door. The female members of the department were dismissed. Larry Michael told us that the owner had a special project for us and needed us to edit together a video of the good bits from our cheerleader calendar video shoot. It wasn't hard to put two and two together. Larry Michael, one of Snyder's top confidants, has tasked us with producing a video for Schneider of sexually suggestive footage of cheerleaders, obviously unbeknownst to any of the women involved. One of the senior producers said he'd take care of it and later on, while passing through the editing suite, I saw several images on both the editing monitor and the monitor of our tape deck that featured the cheerleaders posing for their photoshoot, but it was like outtakes, and their breasts and pubic areas were exposed. It became crystal clear that my worst suspicions were true. The video department had been told to edit together lewd footage of the cheerleaders at the request of Dan Snyder. 34:30 Brad Baker: The NFL has refused to release the report of the Wilkinson investigation, even though myself and over 100 other employees were asked by the League to speak to the Wilkinson firm. We all participated because we thought the NFL wanted to know the truth. We believe that the toxic workplace culture and the serious harm it caused would finally become public and that the investigation would end with some kind of report. I mean, they were able to release a report that was 243 pages long...243 pages long...on the PSIs of footballs, the pounds per square inch of footballs. Surely, surely, women being sexually harassed and lewd outtakes videos of female employees created without their consent could muster up some kind of written report right 43:40 Rachel Engelson: I was only 24 and the man who sexually harassed me was old enough to be my father. And he also was considered the voice of the team in the public sphere. So to me, the power that he held in his position and his close personal relationship with Daniel Snyder was enough for me to reconsider anything. And at the time, I didn't know and realize that 55% of victims experienced retaliation after speaking up or making a claim. I still decided to tell my boss about my harasser's public comments about my appearance, his unwanted kisses on the cheek, and emails about special gifts he expected from me. When I told my boss, we agreed that nothing would happen if I reported it to the person who was supposedly running HR at that point. And so my boss called my harasser on the phone. Mind you, we were in two different locations. I was in Maryland and he was in Virginia, so this had to be done via phone call. I was in the room when my boss called him to tell him to leave me alone. And it's a memory I'll never forget, because I distinctly remember hearing my harasser yell through the phone, "what the fuck is she thinking?" and I just kind of muted everything after that. So fearing further harassment and retaliation, I took to hiding from him at public events. I strategically would place myself between colleagues so he couldn't get near me. And I just felt humiliated to have to hide in plain sight in front of all of my colleagues, my clients, and I was just so frustrated that I had to avoid company functions for fear that I would experience sexual harassment again. And most of all, it made me feel worthless. All the hard work I put into my work and the team and I was reduced to my appearance and not my value as an employee. The second time I decided to report harassment was with the arrival of a new executive team, similar to Ana, that was specifically hired to help change the business. I told them about the public comments about my appearance, the unwanted kisses on the cheek, the email, as well as the time at training camp, I was sexually assaulted by the same man that I had previously reported. Those executives were appalled at my treatment and had good intentions to affect change, but they were all fired within six months of reporting this. And after they were fired, and this was reportedly because the old guard at the Washington football team did not want change, I just felt like I had zero protection. I didn't want to go back to avoiding people, clients, events, and even my own job, to keep away from my harasser. So I resigned from my position without another job lined up so I wouldn't have to deal with this. 48:35 Emily Applegate: My name is Emily Applegate. I began working for the Washington Football Team exactly eight years ago as of tomorrow. While my time with the team was short, my experiences there have altered the structure of my entire life. 49:10 Emily Applegate: On a daily basis, I was sexually harassed by my direct boss, the Chief Marketing Officer of the team. Every day, I was forced into uncomfortable conversations about my body and about my appearance. I was told to wear tight outfits to events, so clients had something to look at. I was asked invasive questions about my dating life, specifically if I was interested in older men, because my boss was significantly older than me. I was told I wasn't allowed to wear flat shoes because he liked the way my body looked better when I was in high heels. My photograph was taken without my permission and passed to other executives throughout the team by my boss. 50:20 Emily Applegate: To address the most common question that I get, "why didn't you report to Human Resources?" I didn't report to Human Resources because Dan Snyder created a culture where this behavior was accepted and encouraged. 53:35 Rep. Carolyn Maloney (D-NY): July 1, 2021, the NFL issued a press release announcing the outcome of its investigation into the Washington football team stating and I quote, "none of the managers or executives identified as having engaged in this conduct is still employed at the club." 54:10 Rep. Carolyn Maloney (D-NY): Rep. Carolyn Maloney (D-NY): Is the NFL's statement that wrongdoers have been removed from the Washington Football Team accurate? Tiffani Johnston: Absolutely not. It all started from the top with Dan Snyder, every day, on every single issue. 55:05 Rep. Carolyn Maloney (D-NY): Miss Johnston, I received a letter dated today from Jason Friedman, a former Vice President who worked for the Washington football team for over 20 years, and here is the letter. He was apparently with you the night that Dan Snyder personally harassed you. And here's what he said. He has never told his story publicly before and I want to quote now from his letter. He says "I witnessed Dan Snyder grab the arm of my coworker, Tiffany Johnston, and attempt to pull her into his limousine. This took place over a dinner in Washington DC. I was shocked. Thankfully, Tiffany was able to quickly pull away." 57:35 Rep. Virginia Foxx (R-NC): The proper venue to explore these types of claims is in the courtroom, not before this committee. To my knowledge, there's no pending litigation regarding the events we've heard discussed today, nor does this committee have legislative jurisdiction over this issue. It concerns me that this committee is choosing to spend its limited time having this discussion on the NFL and second guessing decisions when there are multiple Biden-caused catastrophes that desperately need our attention and oversight. And the witnesses here have begged for us to do something and nothing is going to happen as a result of this committee. That's cruel to these people. 1:06:50 Rep. Ralph Norman (R-SC): What do you want us to do? What should Congress do? I can't legislate bad behavior to stop it. Just quickly, what would you do. 1:09:05 Emily Applegate: Thank you for asking this question, actually, because I think it's very important due to the fact that multiple members of the committee has now said that this is not the appropriate venue for us to be sharing the story and that we shouldn't be in the courtroom, things like that. You guys have the opportunity to take this issue on, pass legislation that would help other employees throughout the United States be able to report so they have that opportunity to be in the courtroom, and not only the opportunity to be in the courtroom, but then also to find some justice, because I think we can all agree that a lot of people go through the criminal justice system, and they never see any type of justice when it comes to sexual harassment or sexual assault. So until those two things are taken more seriously by Congress, then nothing is going to happen. But that's why we're here today to ask you to do your job and pass those legislation laws. 1:09:55 Rep. Raja Krishnamoorthi (D-IL): To my dear colleagues on the other side, I just want to point out that we legislate the rules, regulations, and laws that govern workplace safety, as well as non disclosure agreement laws and so forth. 1:15:05 Rep. Yvette Herrell (R-NM): Mr. Chair, this hearing is a farce. And we should be looking at inflation, the economy, Afghanistan, the border crisis and so many other issues that are important to our nation and to our constituents. Instead, we are spending time looking at a single business, investigating it for things that happened a decade ago. And let me restate again the owners of the team fired those responsible. In fact, the owners paid the largest fine ever imposed by the NFL and was suspended indefinitely from operations. This roundtable is ridiculous and it is an abuse of power. 1:35:50 Rep. Debbie Wasserman Schultz (D-FL): You might be aware that part of the reason that the NFL is such a profitable business is that Congress approved legislation in 1961 that allowed an antitrust exemption where professional football teams could pull together when negotiating radio and television contracts. They also receive lucrative federal tax exemptions and taxpayer dollars in the hundreds of millions to build football stadiums that make them billions. Do you believe Congress should be in the business of protecting an organization that puts the interests of billionaire owners above hundreds of women who experienced harassment and abuse? And do you think that those benefits, that we should consider revoking them if they do not make changes to ensure that you have protections when it comes to human resources, sexual assault accountability, making sure that there is an equitable and safe workplace for their employees? 1:41:35 Rep. Hank Johnson (D-GA): Miss Coburn in your op ed, you mentioned that after the secret "good bits" videos hit the news that you and 40 or so other cheerleader alumni came together and some of you were able to mediate a settlement. Were those who settled, were they barred from going to court because of a forced arbitration agreement? Do you know? Melanie Coburn: Yes, many of when those videos were uncovered, that's when I came out publicly. I had the strength and courage to organize them. And yes, they all, they they got together and there was a, you know, mediation and there was a settlement and along with that settlement, they were forced to sign NDAs. 1:45:10 Rep. Jackie Speier (D-CA): Congress can do a lot about this. Next week, all of my colleagues on the other side of the aisle who aren't here now could vote for the bill by Cheri Bustos that is going to require that no NDAs can be forced upon employees for sexual harassment or sexual assault. That would go a long way. We could also investigate the tax exempt status of the National Football League. We gave them that tax exempt status. Evidently, there was $8 billion received last year that was then divided up among the various teams to the tune of about $250 million a team. 1:50:10 Rep. Byron Donalds (R-FL): We have a responsibility here of regulating, specifically, the United States economy when it comes to interstate commerce, to regulating our borders, to actually making sure we coin sound money, that we appropriate for the necessary functions of government. But one of the things that the Constitution of these United States actually precludes us from doing is interfering directly in the affairs of individual businesses, no matter how abhorrent they may be. Now, if there's criminality involved, then that is where the justice system, specifically in this case the civil system, takes those matters. December 18, 2022 @TheGhettoGronk on Twitter Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Jan 29, 2023 • 1h 43min

CD267: The Monopoly Powers of Live Nation/Ticketmaster

Live Nation and Ticketmaster merged over a decade ago and Congress is concerned - for good reason - that the company is exerting monopoly powers over the live event industry. In this episode, learn how the merger was allowed to happen in the first place, the problems that industry participants and competitors are having with the company, and what Congress is thinking of doing about it. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! We're Not Wrong Live Show Wednesday, March 1 | 8:00 PM PSTPianoFight Main Stage San Francisco Background Sources Event Ticketing Market Apr 12, 2018. U.S. Government Accountability Office. Live Nation Overview Open Secrets. Open Secrets. Ticketmaster August Brown. Jan 24, 2023. The Seattle Times. Taylor Swift Ashley Cullins. Dec 5, 2022. The Hollywood Reporter. Caitlin Huston. Nov 18, 2022. The Hollywood Reporter. Caitlin Huston. Nov 17, 2022. The Hollywood Reporter. Bad Bunny Maria Abi-Habib. Dec 16, 2022. The New York Times. Dylan Smith. Apr 15, 2021. Digital Music News. BTS Dave Clark. Mar 3, 2022. Ticket News. Fengyen Chiu. Oct 11, 2021. Republic World. Adele Dave Clark. Dec 8, 2021. Ticket News. Pixies Steve Knopper. Nov 1, 2010. Wired. Bruce Sprintsteen Alex Young. Nov 18, 2022. Consequence Sound. Daniel Kreps. Feb 4, 2009. Rolling Stone. Pearl Jam Shawn Garrett. Nov 17, 2022. KIRO 7 News. Eric Boehlert. Dec 28, 1995. Rolling Stone. Reuters. Jul 1, 1994. The New York Times. Ticketmaster Scalper Program Dave Clark. Jul 8, 2021. Ticket News. Rachel Houlihan et al. Oct 18, 2018. CBC News. Dave Seglins et al. Sep 19, 2018. CBC News. Antitrust Policy and Enforcement Doha Mekki. Jan 26, 2023. U.S. Department of Justice. John Kwoka. Dec 19, 2018. Washington Center for Equitable Growth. Jul 5, 2007. Sheppard Mullin. Alan S. Middleton. Jul 3, 2007. Davis Wright Tremaine LLP. Richard B. Blackwell. March 1972 *13(3). William & Mary Law Review. Mergers and Monopoly Power Open Markets Institute. Live Nation-Ticketmaster Merger U.S. Department of Justice. (July 2010) (January 2020) (January 2020) Kroger-Albertsons Merger Julie Creswell. Jan 23, 2023. The New York Times. Russell Redman. Dec 6, 2022. Winsight Grocery Business. Laws Bills Sponsor: Amy Klobuchar (D-MN) Audio Sources January 24, 2023 Senate Committee on the Judiciary Witnesses: Joe Berchtold, President and Chief Financial Officer, Live Nation Entertainment, Inc. Jack Groetzinger, Chief Executive Officer, SeatGeek, Inc. Jerry Mickelson, Chief Executive Officer and President, Jam Productions, LLC Sal Nuzzo, Senior Vice President, The James Madison Institute Vice President for Legal Advocacy, American Antitrust Institute Clyde Lawrence, Singer-songwriter, Lawrence February 24, 2009 Senate Committee on the Judiciary, Subcommittee on Antitrust, Competition Policy and Consumer Rights Witnesses: Irving Azoff, Chief Executive Officer, Ticketmaster Entertainment, Inc. Jerry Mickelson, Chairman and Executive Vice President, JAM Productions Michael Rapino, President and Chief Executive Officer, Live Nation, Inc. David A. Balto, Senior Fellow, Center for American Progress Action Fund Seth Hurwitz, Co-Owner, I.M.P. Productions and 9:30 Club YouTube Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Jan 6, 2023 • 2h 15min

CD266: Contriving January 6th

The January 6th Committee investigation is over and four criminal charges against former President Donald Trump have been referred to the Justice Department by the Committee. In this episode, hear a summary of 23 hours of testimony and evidence presented by the Committee which prove that former President Trump went to extraordinary and illegal lengths to remain President, despite losing the 2020 Election. Executive Producers: Michael Constantino, Shelley Stracener, Daniel Slaughter, and Christine Brendle Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Final Committee Report 117th Congress Second Session. Dec 22, 2022. U.S. Government Publishing Office. The January 6th Committee Robert Draper and Luke Broadwater. Dec 23, 2022. The New York Times Magazine. 2020 Election Litigation Oct 27, 2022. The American Bar Association. Daniel Funke. Feb 9, 2021. PolitiFact. January 6th Security Failures February 2022. U.S. Government Accountability Office. Electors and Vote Certification Process Domenico Montanaro. Dec 14, 2020. NPR. May 11, 2021. U.S. National Archives. John Eastman Deepa Shivaram. Jun 17, 2022. NPR. The Federalist Society. Trump and Georgia Matthew Brown. Nov 22, 2022. The Washington Post. Amy Gardner and Paulina Firozi. Jan 5, 2021. The Washington Post. AG Bill Barr Interview Mike Balsamo. Dec 11, 2020. Dec 1, 2020. The Associated Press. Past Electoral Vote Challenges Joseph A. Gambardello. Jun 29, 2022. FactCheck.org. Ted Barrett. Jan 6, 2005. CNN. Fake Electors Amy Sherman. Jan 28, 2022. PolitiFact. Evan Perez and Tierney Sneed. Jan 26, 2022. CNN. Mar 2, 2021. American Oversight. Censure of Cheney & Kinzinger Feb 4 2022. The New York Times. Audio Sources December 19, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol October 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Featured speakers: Kayleigh McEnany, Former White House Press Secretary Molly Michael, Former Executive Assistant to the President Pat Cipollone, Former White House Counsel Clips Rep. Liz Cheney (R-WY): Why would Americans assume that our Constitution, and our institutions, and our Republic are invulnerable to another attack? Why would we assume that those institutions will not falter next time? A key lesson of this investigation is this: Our institutions only hold when men and women of good faith make them hold, regardless of the political cost. We have no guarantee that these men and women will be in place next time. Any future president inclined to attempt what Donald Trump did in 2020 has now learned not to install people who could stand in the way. And also please consider this: The rulings of our courts are respected and obeyed, because we as citizens pledged to accept and honor them. Most importantly, our President, who has a constitutional obligation to faithfully execute the laws, swears to accept them. What happens when the President disregards the court's rulings is illegitimate. When he disregards the rule of law, that my fellow citizens, breaks our Republic. January 6 Committee Lawyer: To your knowledge, was the president in that private dining room the whole time that the attack on the Capitol was going on? Or did he ever go to, again only to your knowledge, to the Oval Office, to the White House Situation Room, anywhere else? Kayleigh McEnany: The the best of my recollection, he was always in the dining room. January 6 Committee Lawyer: What did they say, Mr. Meadows or the President, at all during that brief encounter that you were in the dining room? What do you recall? Gen. Keith Kellogg: I think they were really watching the TV. January 6 Committee Lawyer: Do you know whether he was watching TV in the dining room when you talked to him on January sixth? Molly Michael: It's my understanding he was watching television. January 6 Committee Lawyer: When you were in the dining room in these discussions, was the violence of capital visible on the screen on the television? Pat Cipollone: Yes. Rep. Adam Kinzinger (R-IL): A federal appeals court in Pennsylvania wrote, quote, "charges require specific allegations and proof. We have neither here." A federal judge in Wisconsin wrote, quote, "the court has allowed the former President the chance to make his case and he has lost on the merits." Another judge in Michigan, called the claims quote, "nothing but speculation and conjecture that votes for President Trump were either destroyed, discarded or switched to votes for Vice President Biden." A federal judge in Michigan sanctioned nine attorneys, including Sidney Powell, for making frivolous allegations in an election fraud case, describing the case as a historic and profound abuse of the judicial process. Recently, a group of distinguished Republican election lawyers, former judges and elected officials issued a report confirming the findings of the courts. In their report entitled "Lost, Not Stolen," these prominent Republicans analyzed each election challenge and concluded this: Donald Trump and his supporters failed to present evidence of fraud or inaccurate results significant enough to invalidate the results of the 2020 Presidential Election. On December 11, Trump's allies lost a lawsuit in the US Supreme Court that he regarded as his last chance of success in the courts. Alyssa Farah: I remember maybe a week after the election was called, I popped into the Oval just to like, give the President the headlines and see how he was doing and he was looking at the TV and he said, "Can you believe I lost to this effing guy?" Cassidy Hutchinson: Mark raised it with me on the 18th and so following that conversation we were in the motorcade ride driving back to the White House, and I said, like, "Does the President really think that he lost?" And he said, "A lot of times he'll tell me that he lost, but he wants to keep fighting it and he thinks that there might be enough to overturn the election, but, you know, he pretty much has acknowledged that he, that he's lost. July 12, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jason Van Tatenhove, Former Oath Keepers Spokesperson Stephen Ayres, January 6th Defendant Clips Rep. Stephanie Murphy (D-FL): According to White House visitor logs obtained by the Committee, members of Congress present at the White House on December 21 included Congressmen Brian Babin (TX), Andy Biggs (AZ), Matt Gaetz (FL), Louie Gohmert (TX), Paul Gosar (AZ), Andy Harris (MD), Jody Hice (R-GA), Jim Jordan (OD), and Scott Perry (PA). Then Congresswoman-elect Marjorie Taylor Greene (GA) was also there. Rep. Stephanie Murphy (D-FL): We've asked witnesses what happened during the December 21 meeting and we've learned that part of the discussion centered on the role of the Vice President during the counting of the electoral votes. These members of Congress were discussing what would later be known as the "Eastman Theory," which was being pushed by Attorney John Eastman. June 28, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Cassidy Hutchinson, Former Special Assistant to the President and Aide to the Chief of Staff Clips 9:10 Rep. Liz Cheney (R-WY): Today's witness, Ms. Cassidy Hutchinson, is another Republican and another former member of President Trump's White House staff. Certain of us in the House of Representatives recall that Ms. Hutchinson once worked for House Republican whip Steve Scalise, but she is also a familiar face on Capitol Hill because she held a prominent role in the White House Legislative Affairs Office, and later was the principal aide to President Trump's Chief of Staff, Mark Meadows. 10:10 Rep. Liz Cheney (R-WY): In her role working for the White House Chief of Staff, Miss Hutchinson handled a vast number of sensitive issues. She worked in the West Wing, several steps down the hall from the Oval Office. Miss Hutchinson spoke daily with members of Congress, with high ranking officials in the administration, with senior White House staff, including Mr. Meadows, with White House Counsel lawyers, and with Mr. Tony Ornato, who served as the White House Deputy Chief of Staff. She also worked on a daily basis with members of the Secret Service who were posted in the White House. In short, Miss Hutchinson was in a position to know a great deal about the happenings in the Trump White House. 24:20 Rep. Liz Cheney (R-WY): On January 3, the Capitol Police issued a special event assessment. In that document, the Capitol Police noted that the Proud Boys and other groups planned to be in Washington DC on January 6, and indicated that quote, "unlike previous post election protests, the targets of the pro-Trump supporters are not necessarily the counter protesters, as they were previously, but rather, Congress itself is the target on the Sixth. 27:45 Rep. Liz Cheney (R-WY): Of course the world now knows that the people who attacked the Capitol on January 6 had many different types of weapons. When a President speaks, the Secret Service typically requires those attending to pass through metal detectors known as magnetometers, or mags for short. Rep. Liz Cheney (R-WY): The Select Committee has learned about reports from outside the magnetometers and has obtained police radio transmissions identifying individuals with firearms, including AR-15s near the Ellipse on the morning of January 6. Let's listen. Police Officer #1: Blue jeans and a blue jean jacket and underneath the blue jacket complaintants both saw the top of an AR 15. Police Officer #2: Any white males brown cowboy boots, they had Glock-style pistols in their waistbands. Police Officer #3: 8736 with the message that subject weapon on his right hip. Police Officer #4: Motor one, make sure PPD knows they have an elevated threat in the tree South side of Constitution Avenue. Look for the "Don't tread on me" flag, American flag facemask cowboy boots, weapon on the right side hip. Police Officer #5: I got three men walking down the street in fatigues and carrying AR-15s. Copy at Fourteenth and Independence. Rep. Liz Cheney (R-WY): We're going to show now an exchange of texts between you and Deputy Chief of Staff Ornato, and these text messages were exchanged while you were at the Ellipse. In one text, you write, "but the crowd looks good from this vantage point, as long as we get the shot. He was f---ing furious." But could you tell us, first of all, who it is in the text who was furious? Cassidy Hutchinson: The he in that text that I was referring to was the President. Rep. Liz Cheney (R-WY): And why was he furious, Miss Hutchinson? Cassidy Hutchinson: He was furious because he wanted the arena that we had on the Ellipse to be maxed out at capacity for all attendees. The advanced team had relayed to him that the mags were free flowing. Everybody who wanted to come in had already come in, but he still was angry about the extra space and wanted more people to come in. Cassidy Hutchinson: And that's what Tony [Ornato] had been trying to relate to him [President Trump] that morning. You know, it's not the issue that we encountered on the campaign. We have enough space. They don't want to come in right now, they have weapons they don't want confiscated by the Secret Service. They're fine on the Mall, they can see you on the Mall and they want to march straight to the Capitol from the Mall. But when we were in the off stage announced tent, I was part of a conversation -- I was in the, I was in the vicinity of a conversation -- where I overheard the President say something to the effect of you know, "I don't think that they have weapons. They're not here to hurt me take the effing mags away. Let my people in, they can march to the Capitol from here. Let the people in, take the effing mags away." Rep. Liz Cheney (R-WY): On December 1, 2020, Attorney General Barr said in an interview that the Department of Justice had now not found evidence of widespread election fraud, sufficient to change the outcome of the election. Ms. Hutchinson, how did the President react to hearing that news? Cassidy Hutchinson: I left the office and went down to the dining room, and I noticed that the door was propped open in the valet was inside the dining room changing the tablecloth off of the dining room table. The valet had articulated that the President was extremely angry at the Attorney General's AP interview and had thrown his lunch against the wall. Rep. Liz Cheney (R-WY): Miss Hutchinson, Attorney General Barr described to the Committee the President's angry reaction when he finally met with President Trump. Let's listen. Former Attorney General Bill Barr: And I said, "Look, I I know that you're dissatisfied with me and I'm glad to offer my resignation" and then he pounded the table very hard. Everyone sort of jumped and he said "Accepted." Reporter: Leader McCarthy, Do you condemn this violence? Rep. Kevin McCarthy (R-CA): I completely condemn the violence in the Capitol. What we're currently watching unfold is un-American. I'm disappointed, I'm sad. This is not what our country should look like. This is not who we are. This is not the First Amendment. This has to stop and this has to stop now. Rep. Liz Cheney (R-WY): Did White House Chief of Staff Mark Meadows ever indicate that he was interested in receiving a Presidential Pardon related to January 6? Cassidy Hutchinson: Mr. Meadows did seek that pardon. Yes, ma'am. Rep. Liz Cheney (R-WY): While our committee has seen many witnesses, including many Republicans, testify fully and forthrightly, this has not been true of every witness. And we have received evidence of one particular practice that raises significant concern. Our committee commonly asks witnesses connected to Mr. Trump's administration or campaign whether they'd been contacted by any of their former colleagues, or anyone else who attempted to influence or impact their testimony, without identifying any of the individuals involved. Let me show you a couple of samples of answers we received to this question. First, here's how one witness described phone calls from people interested in that witness's testimony. "What they said to me is, as long as I continue to be a team player, they know I'm on the right team, I'm doing the right thing, I'm protecting who I need to protect, you know, I'll continue to stay in good graces in Trump World. And they have reminded me a couple of times that Trump does read transcripts and just keep that in mind as I proceed through my interviews with the committee." Here's another sample in a different context. This is a call received by one of our witnesses. "A person let me know you have your deposition tomorrow. He wants me to let you know that he's thinking about you. He knows you're loyal, and you're going to do the right thing when you go in for your deposition." I think most Americans know that attempting to influence witnesses to testify untruthfully presents very serious concerns. June 23, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Jeffrey A. Rosen, Former Acting Attorney General Richard Donoghue, Former Acting Deputy Attorney General Steven Engel, Former Assistant Attorney General for the Office of Legal Counsel Eric Herschmann, Former White House Senior Advisor Clips Rep. Bennie Thompson (D-MS): From the time you took over from Attorney General Barr until January 3, how often did President Trump contact you or the Department to push allegations of election fraud? Former Acting Attorney General Jeffrey Rosen: So between December 23 and January 3, the president either called me or met with me virtually every day, with one or two exceptions like Christmas Day Rep. Andy Biggs (R-AZ): Again, I join my colleagues in calling on Attorney General Barr to immediately let us know what he's doing. Rep. Paul Gosar (R-AZ): We're already working on challenging the certified electors. And what about the court? How pathetic are the courts? Rep. Matt Gaetz (R-FL): January 6, I'm joining with the fighters in the Congress, and we are going to object to electors from states that didn't run clean elections. Democracy is left undefended if we accept the result of a stolen election without fighting with every bit of vigor we can muster. Rep. Jim Jordan (R-OH): The ultimate date of significance is January 6. This is how the process works. The ultimate arbiter here, the ultimate check and balance, is the United States Congress. And when something is done in an unconstitutional fashion, which happened in several of these states, we have a duty to step forward and have this debate and have this vote on the 6th of January. Former Acting Deputy Attorney General Richard Donoghue: So both the Acting Attorney General [Rosen] and I tried to explain to the President on this occasion, and on several other occasions that the Justice Department has a very important, very specific, but very limited role in these elections. States run their elections. We are not quality control for the states. We are obviously interested in and have a mission that relates to criminal conduct in relation to federal elections. We also have related civil rights responsibilities. So we do have an important role, but the bottom line was if a state ran their election in such a way that it was defective, that is to the state or Congress to correct. It is not for the Justice Department to step in. And I certainly understood the President, as a layman, not understanding why the Justice Department didn't have at least a civil role to step in and bring suit on behalf of the American people. We tried to explain that to him. The American people do not constitute the client for the United States Justice Department. The one and only client of the United States Justice Department is the United States government. And the United States government does not have standing, as we were repeatedly told by our internal teams. Office of Legal Counsel, led by Steve Engel, as well as the Office of the Solicitor General researched it and gave us thorough clear opinions that we simply did not have standing and we tried to explain that to the President on numerous occasions. Rep. Adam Kinzinger (R-IL): Let's take a look at another one of your notes. You also noted that Mr. Rosen said to Mr. Trump, quote, "DOJ can't and won't snap its fingers and change the outcome of the election." How did the President respond to that, sir? Former Acting Deputy Attorney General Richard Donoghue: He responded very quickly and said, essentially, that's not what I'm asking you to do. What I'm just asking you to do is just say it was corrupt and leave the rest to me and the Republican Congressmen. Former Acting Deputy Attorney General Richard Donoghue: There were isolated instances of fraud. None of them came close to calling into question the outcome of the election in any individual State. January 6 Committee Lawyer: And was representative Gaetz requesting a pardon? Eric Herschmann: Believe so. The general tone was, we may get prosecuted because we were defensive of, you know, the President's positions on these things. A pardon that he was discussing, requesting, was as broad as you could describe, from the beginning of time up until today, for any and all things. He had mentioned Nixon and I said Nixon's pardon was never nearly that broad. January 6 Committee Lawyer: And are you aware of any members of Congress seeking pardons? Cassidy Hutchinson: I guess Mr. Gaetz and Mr. Brooks, I know, both advocated for, there to be a blanket pardon for members involved in that meeting and a handful of other members that weren't at the December 21 meeting as the preemptive pardons. Mr. Gaetz was personally pushing for a pardon and he was doing so since early December. I'm not sure why. Mr. Gaetz had reached out to me to ask if he could have a meeting with Mr. Meadows about receiving a Presidential pardon. January 6 Committee Lawyer: Did they all contact you? Cassidy Hutchinson: Not all of them, but several of them did. January 6 Committee Lawyer: So you'd be mentioned Mr. Gaetz and Mr. Brooks. Cassidy Hutchinson: Mr. Biggs did. Mr. Jordan talks about congressional pardons but he never asked me for one. It was more for an update on whether the White House is going to pardon members of Congress. Mr. Gohmert asked for one as well. Mr. Perry asked for a pardon too, I'm sorry. January 6 Committee Lawyer: Mr. Perry, did he talk to you directly? Cassidy Hutchinson: Yes, he did. Rep. Adam Kinzinger (R-IL): Mr. Clark was the acting head of the Civil Division and head of Environmental and Natural Resources Division at the Department of Justice. Do either of those divisions have any role whatsoever in investigating election fraud, sir? Former Acting Attorney General Jeffrey Rosen: No. And and to my awareness, Jeff Clark had had no prior involvement of any kind with regard to the work that the department was doing. Rep. Adam Kinzinger (R-IL): Is there a policy that governs who can have contact directly with the White House? Former Acting Attorney General Jeffrey Rosen: Yes. So across many administrations for a long period of time, there's a policy that particularly with regard to criminal investigations restricts at both the White House and the Justice Department and those more sensitive issues to the highest ranks. So for criminal matters, the policy for a long time has been that only the Attorney General and the Deputy Attorney General from the DOJ side can have conversations about criminal matters with the White House, or the Attorney General and the Deputy Attorney General can authorize someone for a specific item with their permission. But the idea is to make sure that the top rung of the Justice Department knows about it, and is in the thing to control it and make sure only appropriate things are done. Steven Engel: The purpose of these these policies is to keep these communications as infrequent, and at the highest levels as possible, just to make sure that people who are less careful about it who don't really understand these implications, such as Mr. Clark, don't run afoul of those contact policies. Former Acting Attorney General Jeffrey Rosen: He acknowledged that shortly before Christmas, he had gone to a meeting in the Oval Office with the President. That, of course, surprised me. And I asked him, How did that happen? And he was defensive, he said it had been unplanned, that he had been talking to someone he referred to as "General Perry," but I believe is Congressman Perry, and that, unbeknownst to him, he was asked to go to a meeting and he didn't know it, but it turned out it was at the Oval -- he found himself at the Oval Office. And he was apologetic for that. And I said, Well, you didn't tell me about it. It wasn't authorized. And you didn't even tell me after the fact. You know, this is not not appropriate. But he was contrite and said it had been inadvertent and it would not happen again and that if anyone asked him to go to such a meeting, he would notify [Former Acting Deputy Attorney General] Rich Donohue and me. Rep. Adam Kinzinger (R-IL): On the same day Acting Attorney General Rosen told Mr. Clark to stop talking to the White House, Representative Perry was urging Chief of Staff Mark Meadows to elevate Clark within the Department of Justice. You can now see on the screen behind me a series of tasks between representative Perry and Mr. Meadows. They show that Representative Perry requested that Mr. Clark be elevated within the department. Representative Perry tells Mr. Meadows on December 26, that quote, "Mark, just checking in as time continues to count down, 11 days to January 6 and 25 days to inauguration. We've got to get going!" Representative Perry followed up and says quote, "Mark, you should call Jeff. I just got off the phone with him and he explained to me why the principal deputy won't work especially with the FBI. They will view it as not having the authority to enforce what needs to be done." Mr. Meadows responds with "I got it. I think I understand. Let me work on the deputy position." Rep. Liz Cheney (R-WY): Mr. Donohue on December 28, Mr. Clark emailed you and Mr. Rosen a draft letter that he wanted you to sign and send to Georgia State officials. This letter claims that the US Department of Justice's investigations have quote, "identified significant concerns that may have impacted the outcome of the election in multiple States, including the state of Georgia." The letter also said this: quote, "in light of these developments, the Department recommends that the Georgia General Assembly should convene in special session," end quote, and consider approving a new slate of electors. Steven Engel: The States had chosen their electors, the electors had been certified, they'd cast their votes, they had been sent to Washington DC. Neither Georgia nor any of the other States on December 28, or whenever this was, was in a position to change those votes. Essentially, the election had happened. The only thing that hadn't happened was the formal counting of the votes. Former Acting Deputy Attorney General Richard Donoghue: I had to read both the email and the attached letter twice to make sure I really understood what he was proposing because it was so extreme to me, I had a hard time getting my head around it initially. But I read it and I did understand it for what he intended and I had to sit down and sort of compose what I thought was an appropriate response. In my response, I explained a number of reasons this is not the Department's role to suggest or dictate to State legislatures how they should select their electors. But more importantly, this was not based on fact, that this was actually contrary to the facts, as developed by Department investigations over the last several weeks and months. So I responded to that. And for the Department to insert itself into the political process's way, I think would have had grave consequences for the country. It may very well have spiraled us into a Constitutional crisis. And I wanted to make sure that he understood the gravity of the situation because he didn't seem to really appreciate it. Rep. Adam Kinzinger (R-IL): President Trump rushed back early from Mar-a-Lago on December 31, and called an emergency meeting with the Department's leadership. Mr. Donohue, during this meeting, did the President tell you that he would remove you and Mr. Rosen because you weren't declaring there was election fraud? Former Acting Deputy Attorney General Richard Donoghue: Toward the end of the meeting, the President, again was getting very agitated. And he said, "People tell me I should just get rid of both of you. I should just remove you and make a change in the leadership, put Jeff Clark and maybe something will finally get done." Rep. Adam Kinzinger (R-IL): Mr. Rosen during a January 2 meeting with Mr. Clark, did you confront him again about his contact with the President? And if so, can you describe that? Former Acting Attorney General Jeffrey Rosen: We had -- it was a contentious meeting where we were chastising him that he was insubordinate, he was out of line, he had not honored his own representations of what he would do. And he raised again, that he thought that letter should go out. And we were not receptive to that. Rep. Adam Kinzinger (R-IL): So in that meeting, did Mr. Clark say he would turn down the President's offer if you reversed your position and sign the letter? Former Acting Attorney General Jeffrey Rosen: Yes. Subsequently, he told me that on the on Sunday the 3rd. He told me that the timeline had moved up, and that the President had offered him the job and that he was accepting it. Rep. Adam Kinzinger (R-IL): White House Call Logs obtained by the Committee show that by 4:19pm, on January 3, the White House had already begun referring to Mr. Clark as the Acting Attorney General. Let's ask about that, what was your reaction to that? Former Acting Attorney General Jeffrey Rosen: Well, you know, on the one hand, I wasn't going to accept being fired by my subordinate. So I wanted to talk to the President directly. Former Acting Deputy Attorney General Richard Donoghue: So the four of us knew, but no one else, aside from Jeff Clark of course, knew what was going on until late that Sunday afternoon. We chose to keep a close hold, because we didn't want to create concern or panic in the Justice Department leadership. But at this point, I asked the Acting AG [Rosen], what else can I do to help prepare for this meeting in the Oval Office, and he said, You and Pat [Cipollone] should get the Assistant Attorney Generals on the phone, and it's time to let them know what's going on. Let's find out what they may do if there's a change in leadership, because that will help inform the conversation at the Oval Office. We got most, not all, but most of the AAGs on the phone. We very quickly explained to them what the situation was. [They] essentially said they would leave, they would resign en mass if the President made that change in the department leadership. Rep. Adam Kinzinger (R-IL): DOJ leadership arrived at the White House. Former Acting Deputy Attorney General Richard Donoghue: The conversation this point was really about whether the President should remove Jeff Rosen and replace him with Jeff Clark. And everyone in the room, I think, understood that that meant that letter would go out. And at some point, the conversation turned to whether Jeff Clark was even qualified, competent to run the Justice Department, which in my mind, he clearly was not. And it was a heated conversation. I thought it was useful to point out to the President that Jeff Clark simply didn't have the skills, the ability and the experience to run the Department. And so I said, "Mr. President, you're talking about putting a man in that seat who has never tried a criminal case, who's never conducted a criminal investigation, he's telling you that he's going to take charge of the department, 115,000 employees, including the entire FBI, and turn the place on a dime and conduct nationwide criminal investigations that will produce results in a matter of days. It's impossible. It's absurd. It's not going to happen, and it's going to fail. He has never been in front of a trial jury, a grand jury. He's never even been to Chris Wray's office." I said at one point, "if you walked into Chris Wray's office, one, would you know how to get there and, two, if you got there, would he even know who you are? And you really think that the FBI is going to suddenly start following you orders? It's not going to happen. He's not competent." And that's the point at which Mr. Clark tried to defend himself by saying, "Well, I've been involved in very significant civil and environmental litigation. I've argued many appeals and appellate courts and things of that nature." And then I pointed out that, yes, he was an environmental lawyer, and I didn't think that was appropriate background to be running in the United States Justice Department. Rep. Adam Kinzinger (R-IL): Did anybody in there support Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: No one. Along those lines, he [former President Trump] said, "so suppose I do this, suppose I replace him, Jeff Rosen, with him, Jeff Clark, what would you do?" And I said, "Mr. President, I would resign immediately. I'm not working one minute for this guy [Clark], who I just declared was completely incompetent." And so the President immediately turned to to Mr. Engel. Steven Engel: My recollection is that when the President turned to me and said, "Steve, you wouldn't leave, would you?" I said, "Mr. President, I've been with you through four Attorneys General, including two Acting Attorneys General, but I couldn't be part of this." Former Acting Deputy Attorney General Richard Donoghue: And I said, and we're not the only ones. No one cares if we resign. If Steve and I go, that's fine, it doesn't matter. But I'm telling you what's going to happen. You're gonna lose your entire Department leadership, every single AAG will walk out on you. Your entire Department of leadership will walk out within hours." And I said, "Mr. President, within 24...48...72 hours, you could have hundreds and hundreds of resignations of the leadership of your entire Justice Department because of your actions. What's that going to say about you?" Former Acting Deputy Attorney General Richard Donoghue: And then the other thing that I said was that, you know, look, all anyone is going to sort of think about when they see this...no one is going to read this letter....all anyone is going to think is that you went through two Attorneys General in two weeks until you found the environmental guy to sign this thing. And so the story is not going to be that the Department of Justice has found massive corruption that would have changed results of the election. It's going to be the disaster of Jeff Clark. I think at that point Pat Cipollone said, "Yeah, this is a murder suicide pact, this letter." Rep. Adam Kinzinger (R-IL): Mr. Cipollone, the White House Counsel, told the Committee that Mr. Engels response had a noticeable impact on the President, that this was a turning point in the conversation. Mr. Donohue, towards the end of this meeting, did the President asked you what was going to happen to Mr. Clark? Former Acting Deputy Attorney General Richard Donoghue: He did. When we finally got to, I'd say, the last 15 minutes of the meeting, the President's decision was apparent, he announced it. Jeff Clark tried to scrape his way back and asked the President to reconsider. The President double down said "No, I've made my decision. That's it. We're not going to do it." And then he turned to me and said, "so what happens to him now?" Meaning Mr. Clark. He understood that Mr. Clark reported to me. And I didn't initially understand the question. I said, "Mr. President?" and he said, "Are you going to fire him?" And I said, "I don't have the authority to fire him. He's the Senate confirmed Assistant Attorney General." And he said, "Well, who has the authority to fire him?" And I said, "Only you do, sir." And he said, "Well, I'm not going to fire him." I said, "Alright, well, then we should all go back to work." June 21, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Rusty Bowers, Arizona House Speaker Brad Raffensperger, Georgia Secretary of State Gabriel Sterling, Georgia Secretary of State Chief Operating Officer Wandrea ArShaye, “Shaye” Moss, former Georgia election worker Ronna Romney McDaniel, RNC Chair Justin Clark, former Trump Campaign lawyer Robert Sinners, former Trump campaign staffer Andrew Hitt, Former Wisconsin Republican Party Chair Laura Cox, Former Michigan Republican Party Chair Josh Roselman, Investigative Counsel for the J6 Committee John Eastman, Former Trump Lawyer Mike Shirkey, Majority Leader of the Michigan Senate Angela McCallum, Trump Campaign caller Rudy Giuliani Clips Josh Roselman: My name is Josh Roselman, I'm an Investigative Counsel for the House Select Committee to investigate the January 6 attack on the United States Capitol. Beginning in late November 2020. The President and his lawyers started appearing before state legislators, urging them to give their electoral votes to Trump, even though he lost the popular vote. This was a strategy with both practical and legal elements. The Select Committee has obtained an email from just two days after the election, in which a Trump campaign lawyer named Cleata Mitchell asked another Trump lawyer, John Eastman, to write a memo justifying the idea. Eastman prepared a memo attempting to justify this strategy, which was circulated to the Trump White House, Rudy Giuliani's legal team, and state legislators around the country and he appeared before the Georgia State Legislature to advocate for it publicly. John Eastman: You could also do what the Florida Legislature was prepared to do, which is to adopt a slate of electors yourself. And when you add in the mix of the significant statistical anomalies in sworn affidavits and video evidence of outright election fraud, I don't think it's just your authority to do that, but quite frankly, I think you have a duty to do that to protect the integrity of the election here in Georgia. Josh Roselman: But Republican officials in several states released public statements recognizing that President Trump's proposal was unlawful. For instance, Georgia Governor Brian Kemp called the proposal unconstitutional, while Arizona House Speaker Rusty Bowers wrote that the idea would undermine the rule of law. The pressure campaign to get state legislators to go along with this scheme intensified when President Trump invited delegations from Michigan and Pennsylvania to the White House. January 6 Committee Lawyer: Either you or speaker Chatfield, did you make the point to the President, that you were not going to do anything that violated Michigan law? Mike Shirkey: I believe we did. Whether or not it was those exact words or not, I think the words that I would have more likely used is, "we are going to follow the law." Josh Roselman: Nevertheless, the pressure continued. The next day President Trump tweeted quote, "hopefully the Courts and/or Legislatures will have the COURAGE to do what has to be done to maintain the integrity of our Elections, and the United States of America itself. THE WORLD IS WATCHING!!!!" He posted multiple messages on Facebook, listing the contact information for state officials and urging his supporters to contact them to quote "demand a vote on decertification." These efforts also involves targeted outreach to state legislators from President Trump's lawyers and from Trump himself. Angela McCallum: Hi, my name is Angela McCallum, I'm calling from Trump campaign headquarters in Washington DC. You do have the power to reclaim your authority and send us a slate of Electors that will support President Trump and Vice President Pence. Josh Roselman: Another legislator, Pennsylvania House Speaker Brian Cutler, received daily voicemails from Trump's lawyers in the last week of November. Cutler felt that the outreach was inappropriate and asked his lawyers to tell Rudy Giuliani to stop calling, but Giuliani continued to reach out. Rudy Giuliani: I understand that you don't want to talk to me now. I just want to bring some facts to your attention and talk to you as a fellow Republican. Josh Roselman: These ads were another element in the effort. The Trump campaign spent millions of dollars running ads online and on television. Commercial Announcer: The evidence is overwhelming. Call your governor and legislators demand they inspect the machines and hear the evidence. Fake electors scheme Casey Lucier: My name is Casey Lucier. I'm an Investigative Counsel for the House Select Committee to Investigate the January 6 Attack on the United States Capitol. On November 18, a lawyer working with the Trump campaign named Kenneth Chesebro wrote a memo arguing that the Trump campaign should organize its own electors in the swing states that President Trump had lost. The Select Committee received testimony that those close to President Trump began planning to organize fake electors for Trump in states that Biden won in the weeks after the election. At the President's direct request, the RNC assisted the campaign in coordinating this effort. January 6 Committee Lawyer: What did the President say when he called you? Ronna Romney McDaniel: Essentially, he turned the call over to Mr. Eastman, who then proceeded to talk about the importance of the RNC helping the campaign gather these contingent electors in case any of the legal challenges that were ongoing change the result of any dates, I think more just helping them reach out and assemble them. But the My understanding is the campaign did take the lead, and we just were helping them in that in that role. Casey Lucier: As President Trump and his supporters continued to lose lawsuits, some campaign lawyers became convinced that convening electors in states that Trump lost was no longer appropriate. Justin Clark: I just remember I either replied or called somebody saying, unless we have litigation pending this, like in the states, like, I don't think this is appropriate, or no, this isn't the right thing to do. I'm out. Matt Morgan: At that point, I had Josh Findlay email Mr. Chesebro, politely, to say, "This is your task. You are responsible for the Electoral College issues moving forward". And this was my way of taking that responsibility to zero. Casey Lucier: The Committee learned the White House Counsel's Office also felt the plan was potentially illegal. January 6 Committee Lawyer: And so to be clear, did you hear the White House Counsel's office saying that this plan to have alternate electors meet and cast votes for Donald Trump in states that he had lost was not legally sound? Cassidy Hutchinson: Yes, sir. Casey Lucier: The Select Committee interviewed several of the individual fake electors, as well as Trump campaign staff who helped organize the effort. Robert Sinners: We were just, you know, kind of useful idiots or rubes at that point. You know, a strong part of me really feels that it's just kind of as the road continued, and as that was failure, failure, failure that that got formulated as what do we have on the table? Let's just do it. January 6 Committee Lawyer: And now after what we've told you today about the Select Committee's investigation about the conclusion of the professional lawyers on the campaign staff, Justin Clark, Matt Morgan and Josh Findlay, about their unwillingness to participate in the convening of these electors, how does that contribute to your understanding of these issues? Robert Sinners: I'm angry, I'm angry. Because I think in a sense, you know, no one really cared if people were potentially putting themselves in jeopardy. January 6 Committee Lawyer: Would you have not wanted to participate in this any further, as well? Robert Sinners: I absolutely would not have had I know that the three main lawyers for the campaign that I've spoken to in the past, and were leading up, we're not on board. Yeah. Andrew Hitt: I was told that these would only count if a court ruled in our favor. So that would have been using our electors. Well, it would have been using our electors in ways that we weren't told about and we wouldn't have supported. Casey Lucier: Documents obtained by the Select Committee indicate that instructions were given to the electors in several states that they needed to cast their ballots in complete secrecy. Because the scheme involved fake electors, those participating in certain states had no way to comply with state election laws, like where the electors were supposed to meet. One group of fake electors even considered hiding overnight to ensure that they could access the State Capitol, as required in Michigan. January 6 Committee Lawyer: Did Mr. Norton say who he was working with at all on this effort to have electors meet? Laura Cox: He said he was working with the President's campaign. He told me that the Michigan Republican electors were planning to meet in the Capitol and hide overnight so that they could fulfill the role of casting their vote per law in the Michigan chambers and I told him in no uncertain terms that that was insane and inappropriate. Casey Lucier: In one state, the fake electors even asked for a promise that the campaign would pay their legal fees if they got sued or charged with a crime. Ultimately, fake electors did meet on December 14, 2020 in Arizona, Georgia, Michigan, Pennsylvania, New Mexico, Nevada and Wisconsin. At the request of the Trump campaign, the electors from these battleground states signed documents falsely asserting that they were the quote, "duly elected" electors from their state and submitted them to the National Archives and to Vice President Pence in his capacity as President of the Senate. In an email produced to the Select Committee, Dr. Eastman told the Trump campaign representative that it did not matter that the electors had not been approved by a state authority. Quote, "the fact that we have multiple slates of electors demonstrates the uncertainty of either. That should be enough." He urged that Pence "act boldly and be challenged." Documents produced to the Select Committee show that the Trump campaign took steps to ensure that the physical copies of the fake electors' electoral votes from two states were delivered to Washington for January 6. Text messages exchanged between Republican Party officials in Wisconsin show that on January 4, the Trump campaign asked for someone to fly their fake electors' documents to Washington. A staffer for Wisconsin Senator Ron Johnson texted a staffer for Vice President Pence just minutes before the beginning of the Joint Session. This staffer stated that Senator Johnson wished to hand deliver to the Vice President the fake electors' votes from Michigan and Wisconsin. The Vice President's aide unambiguously instructed them not to deliver the fake votes to the Vice President. Even though the fake elector slates were transmitted to Congress and the Executive Branch, the Vice President held firm and his position that his role was to count lawfully submitted electoral votes. Rep. Bennie Thompson (D-MS): Brad Raffensperger is the 29th Secretary of State of Georgia, serving in this role since 2019. As an elected official, and a Republican Secretary, Raffensperger is responsible for supervising elections in Georgia and maintaining the state's public records. Rep. Bennie Thompson (D-MS): Speaker Bowers, thank you for being with us today. You're the speaker of the Arizona House and a self-described conservative Republican. You campaigned for President Trump and with him during the 2020 election. Is it fair to say that you wanted Donald Trump to win a second term in office? Please? Rusty Bowers: Yes, sir. Thank you. Rep. Bennie Thompson (D-MS): And is it your understanding that President Biden was the winner of the popular vote in Arizona in 2020? Rusty Bowers: Yes, sir. Rep. Adam Schiff (D-CA): Before we begin with the questions that I had prepared for you, I want to ask you about a statement that former President Trump issued, which I received just prior to the hearing. Former President Trump begins by calling you a RINO, Republican in Name Only. He then references a conversation in November 2020, in which he claims that you told him that the election was rigged, and that he had won Arizona. To quote the former President, "during the conversation, he told me the election was rigged and that I won Arizona," unquote. Is that false? Rusty Bowers: Anywhere, anyone, anytime that has said that I said the election was rigged, that would not be true. Rep. Adam Schiff (D-CA): And when the former President, in his statement today, claimed that you told him that he won Arizona, is that also false? Rusty Bowers: That is also false. Rep. Adam Schiff (D-CA): Mr. Bowers, I understand that after the election, you received a phone call from President Trump and Rudy Giuliani, in which they discussed the result of the presidential election in Arizona. If you would, tell us about that call. Rusty Bowers: Mr. Giuliani came on first. And niceties...then Mr. Trump, President Trump, then-President Trump came on. Rep. Adam Schiff (D-CA): During the conversation did you ask Mr. Giuliani for proof of these allegations of fraud that he was making? Rusty Bowers: On multiple occasions, yes. Rep. Adam Schiff (D-CA): And when you asked him for evidence of this fraud, what did he say? Rusty Bowers: He said that they did have proof. And I asked him, "Do you have names?" [He said] for example, we have 200,000 illegal immigrants, some large number, five or six thousand, dead people, etc. And I said, "Do you have their names?" Yes. "Will you give them to me?" Yes. The President interrupted and said, "Give the man what he needs Rudy." He said, "I will." And that happened on at least two occasions, that interchange in the conversation. Rep. Adam Schiff (D-CA): Did you ever receive from him that evidence either during the call, after the call, or to this day? Rusty Bowers: Never. Rep. Adam Schiff (D-CA): What was the ask during this call? Rusty Bowers: The ones I remember, were first, that we would hold -- that I would allow an official committee at at the Capitol so that they could hear this evidence, and that we could take action thereafter. I said, "to what end? To what end the hearing." He said, well, we have heard by an official high up in the Republican legislature that there is a legal theory or a legal ability in Arizona, that you can remove the the electors of President Biden and replace them. And we would like to have the legitimate opportunity, through the committee, to come to that end and and remove that. And I said that's, that's something that's totally new to me. I've never heard of any such thing. And I would never do anything of such magnitude without deep consultation with qualified attorneys. And I said, I've got some good attorneys, and I'm going to give you their names. But you're asking me to do something against my oath and I will not break my oath. Rep. Adam Schiff (D-CA): Did you also receive a call from US Representative Andy Biggs of Arizona on the morning of January 6? Rusty Bowers: I did. Rep. Adam Schiff (D-CA): And what did Mr. Biggs asked you to do? Rusty Bowers: I believe that was the day that the vote was occurring in each state to have certification or to declare the certification of the electors. And he asked if I would sign on both to a letter that had been sent from my State, and/or that I would support the decertification of the electors. And I said I would not. Rep. Adam Schiff (D-CA): Speaking Bowers, did the President call you again later in December? Rusty Bowers: He did, sir. Rep. Adam Schiff (D-CA): Did you tell the president in that second call that you supported him, that you voted for him, but that you are not going to do anything illegal for him? Rusty Bowers: I did, sir. Rep. Adam Schiff (D-CA): Nevertheless, his lawyer John Eastman called you some days later, and what did Dr. Eastman want you to do? Rusty Bowers: That we would, in fact, take a vote to overthrow -- or I shouldn't say overthrow -- that we would decertify the electors, and that we had plenary authority to do so. But I said, "What would you have me do?" And he said, "Just do it and let the court sorted out." And I said, "You're asking me to do something that's never been done in history, the history of the United States. And I'm going to put my state through that without sufficient proof? And that's going to be good enough with me? That I would, I would put us through that, my state that I swore to uphold, both in Constitution and in law? No, sir." Rep. Adam Schiff (D-CA): I want to look even more deeply at the fake electoral scheme. Every four years, citizens from all over the United States go to the polls to elect the President. Under our Constitution, when we cast our votes for president, we are actually voting to send electors pledged to our preferred candidate to the Electoral College. In December, the electors in each state meet, cast their votes, and send those votes to Washington. There was only one legitimate slate of electors from each state. On the Sixth day of January, Congress meets in a joint session to count those votes, and the winner of the Electoral College vote becomes the president. Rep. Bennie Thompson (D-MS): Secretary Raffensburger, thank you for being here today. You've been a public servant in Georgia since 2015, serving first as a member of the Georgia House of Representatives, and then since January 2019, as Georgia Secretary of State as a self described conservative Republican. Is it fair to say that you wanted President Trump to win the 2020 election? Brad Raffensperger: Yes, it is. Rep. Adam Schiff (D-CA): Secretary Raffensperger, did Joe Biden win the 2020 presidential election in Georgia and by what margin? Brad Raffensperger: President Biden carried the state of Georgia by approximately 12,000 votes. Rep. Adam Schiff (D-CA): Bear in mind as we discuss this call today that by this point in time, early January, the election in Georgia had already been certified. But perhaps more important, the President of the United States had already been told repeatedly by his own top Justice Department officials that the claims he was about to make to you about massive fraud in Georgia were completely false. June 16, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: Greg Jacob, Former Counsel to Vice President Mike Pence J. Michael Luttig, Retired judge for the U.S. Court of Appeals for the Fourth Circuit and informal advisor to Mike Pence Julie Radford, Former Chief of Staff for Ivanka Trump Eric Herschmann, Former White House Senior Advisor Nicholas Luna, Former Assistant to President Trump Gen. Keith Kellogg, Former National Security Advisor to VP Pence Clips 16:45 Rep. Bennie Thompson (D-MS): Greg Jacob was Counsel to Vice President Pence. He conducted a thorough analysis of the role of the Vice President in the Joint Session of Congress under the Constitution, the Electoral Count Act, and 230 years of historical practice. But he also has firsthand information about the attack on the Capitol because he lived through it. He was with the Vice President and his own life was in danger. 31:05 Rep. Liz Cheney (R-WY): Eastman was, at the time, a law professor at Chapman University Law School. He prepared a memo outlining the nonsensical theory that the Vice President could decide the outcome of the election at the Joint Session of Congress on January 6. 32:50 Rep. Liz Cheney (R-WY): Dr. Eastman himself admitted in an email that the fake electors had no legal weight. Referring to the fake electors as, quote "dead on arrival in Congress" end quote, because they did not have a certification from their States. 46:40 Greg Jacob: We had a constitutional crisis in 1876 because in that year, multiple slates of electors were certified by multiple slates [sic]. And when it came time to count those votes, the antecedent question of "which ones?" had to be answered. That required the appointment of an independent commission. That commission had to resolve that question. And the purpose of the Electoral Count Act of 1887 had been to resolve those latent ambiguities. Now I'm in complete agreement with Judge Luttig. It is unambiguous that the Vice President does not have the authority to reject electors. There is no suggestion of any kind that it does. There is no mention of rejecting or objecting to electors anywhere in the 12th amendment. And so the notion that the Vice President could do that certainly is not in the text. But the problem that we had and that John Eastman raised in our discussions was, we had all seen that in Congress in 2000, in 2004, in 2016, there had been objections raised to various states. And those had even been debated in 2004. And so, here you have an Amendment that says nothing about objecting or rejecting. And yet we did have some recent practice of that happening within the terms of the Electoral Count Act. So we started with that. 1:20:45 Greg Jacob: He again tried to say, but I don't think the courts will get involved in this. They'll invoke the political question doctrine and so if the courts stay out of it, that will mean that we'll have the 10 days for the States to weigh in and resolve it. And then, you know, they'll send back the Trump slates of electors, and the people will be able to accept that. I expressed my vociferous disagreement with that point, I did not think that this was a political question. Among other things, if the courts did not step in to resolve this, there was nobody else to resolve it. You would be in a situation where you have a standoff between the President of the United States and, counterfactually, the Vice President of the United States saying that we've exercised authorities that, Constitutionally, we think we have by which we have deemed ourselves the winners of the election. You would have an opposed House and Senate disagreeing with that. You would have State legislatures that, to that point, I mean, Republican leaders across those legislatures had put together, had put out statements, and we collected these for the Vice President as well, that the people had spoken in their States and that they had no intention of reversing the outcome of the election. We did receive some signed letters that Mr. Eastman forwarded us by minorities of leaders in those States, but no State had any legislative house that indicated that added any interest in it. So you would have had just a an unprecedented Constitutional jump ball situation with that standoff. And as I expressed to him, that issue might well then have to be decided in the streets. Because if we can't work it out politically, we've already seen how charged up people are about this election. And so it would be a disastrous situation to be in. So I said, I think the courts will intervene. I do not see a commitment in the Constitution of the question, whether the Vice President has that authority to some other actor to resolve there. There's arguments about whether Congress and the Vice President jointly have a Constitutional commitment to generally decide electoral vote issues. I don't think that they have any authority to object or reject them. I don't see it in the 12th Amendment, but nonetheless. And I concluded by saying, "John, in light of everything that we've discussed, can't we just both agree that this is a terrible idea?" And he couldn't quite bring himself to say yes to that. But he very clearly said, "Well, yeah, I see we're not going to be able to persuade you to do this." And that was how the meeting concluded. Rep. Pete Aguilar (D-CA): We understand that the Vice President started his day on January 4 with a rally in Georgia for the Republican candidates in the US Senate runoff. When the Vice President returned to Washington, he was summoned to meet with the President regarding the upcoming Joint Session of Congress. Mr. Jacob, during that meeting between the President and the Vice President, what theories did Dr. Eastman present regarding the role of the Vice President in counting the electoral votes? Greg Jacob: During the meeting on January 4, Mr. Eastman was opining there were two legally viable arguments as to authorities that the Vice President could exercise two days later on January 6. One of them was that he could reject electoral votes outright. The other was that he could use his capacity as Presiding Officer to suspend the proceedings and declare essentially a 10-day recess during which States that he deemed to be disputed, there was a list of five to seven states, the exact number changed from conversation to conversation, but that the Vice President could sort of issue and demand to the State Legislatures in those States to re-examine the election and declare who had won each of those States. So he said that both of those were legally viable options. He said that he did not recommend, upon questioning, he did not recommend what he called the "more aggressive option," which was reject outright, because he thought that that would be less politically palatable. The imprimatur of State Legislature authority would be necessary to ultimately have public acceptance of an outcome in favor of President Trump. And so he advocated that the preferred course of action would be the procedural route of suspending the Joint Session and sending the election back to the States. And again, the Vice President's first instinct here is so decisive on this question, there's just no way that the framers of the Constitution who divided power and authority, who separated it out, who had broken away from George III, and declared him to be a tyrant, there was no way that they would have put in the hands of one person, the authority to determine who was going to be President of the United States. And then we went to history. We examined every single electoral vote count that had happened in Congress since the beginning of the country. And critically, no Vice President, in 230 years of history, had ever claimed to have that kind of authority, hadn't claimed authority to reject electoral votes, had not claimed authority to return electoral votes back to the States. In the entire history of the United States, not once had a Joint Session, ever returned electoral votes back to the States to be counted. So the history was absolutely decisive. And again, part of my discussion with Mr. Eastman was, if you were right, don't you think Al Gore might have liked to have known in 2000, that he had authority to just declare himself President of the United States? Did you think that the Democrat lawyers just didn't think of this very obvious quirk that he could use to do that? And of course, he acknowledged Al Gore did not and should not have had that authority at that point in time. So at the conclusion of the meeting on the 4th, the President had asked that our office meet with Mr. Eastman the next day to hear more about the positions he had expressed at that meeting, and the Vice President indicated that....offered me up as his counsel, to fulfill that duty. We had an extended discussion an hour and a half to two hours on January 5. What most surprised me about that meeting was that when Mr. Eastman came in, he said, "I'm here to request that you reject the electors." So on the 4th, that had been the path that he had said, "I'm not recommending that you do that." But on the 5th, he came in and expressly requested that. Rep. Pete Aguilar (D-CA): Mr. Jacob did you, Mr. Short, and the Vice President have a call later that day, again, with the President and Dr. Eastman? Greg Jacob: So, yes, we did. Rep. Pete Aguilar (D-CA): And what did Dr. Eastman requested on that call? Greg Jacob: On that phone call, Mr. Eastman stated that he had heard us loud and clear that morning, we were not going to be rejecting electors. But would we be open to considering the other course that we had discussed on the 4th, which would be to suspend the Joint Session and request that State Legislatures reexamine certification of the electoral votes? Rep. Pete Aguilar (D-CA): Trump issued a statement claiming the Vice President had agreed that he could determine the outcome of the election, despite the fact that the Vice President had consistently rejected that position. Mr. Jacob, how did the Vice President's team reacts to the statement from the President? Greg Jacob: So we were shocked and disappointed, because whoever had written and put that statement out, it was categorically untrue. Rep. Pete Aguilar (D-CA): Mr. Jacob, did you go to the Vice President's residences on the morning of January 6? Greg Jacob: Yes. Rep. Pete Aguilar (D-CA): Did the Vice President have a call with the President that morning? Greg Jacob: He did. Rep. Pete Aguilar (D-CA): The President had several family members with him in the Oval that morning for that call. I'd like to show you what they and others told the Select Committee about that call. Eric Herschmann: When I got in, somebody called me and said that the family and others were in the Oval and do I want to come up? So I went upstairs. Ivanka Trump: It wasn't a specific, formal discussion. It was very sort of loose and casual. When I entered the office the second time he was on the telephone with who I later found out to be was the Vice President. January 6 Committee Lawyer: Could you hear the Vice President or only hear the President's end? Eric Herschmann: I could only hear the President's end. Ivanka Trump: The conversation was pretty heated. Eric Herschmann: I think till it became somewhat in a louder tone, I don't think anyone was paying attention to it initially. January 6 Committee Lawyer: Did you hear any part of the phone call, even if just this the end that the President was speaking from? Nicholas Luna: I did, yes. January 6 Committee Lawyer: All right. And what do you hear? Nicholas Luna: So as I was dropping off the note, my memory, I remember hearing the word "wimp." He called him a wimp. I don't remember if he said "You are a wimp," "You'll be a wimp." Wimp is the word I remember. January 6 Committee Lawyer: It's also been reported that the President said to the Vice President something to the effect that "you don't have the courage to make a hard decision." Gen. Keith Kellogg: Worse. I don't remember exactly, but it was something like that, yeah. Like "you're not tough enough to make the call." Ivanka Trump: It was a different tone than I'd heard him take with the Vice President before. Nicholas Luna: Something to the effect, this is, the wording's wrong...."I made the wrong decision four or five years ago." January 6 Committee Lawyer: And the word that she relayed to, that the President called the Vice President. I apologize for being impolite, but do you remember what she said her father called him? Julie Radford: The P word. Former President Donald Trump: I hope Mike is going to do the right thing. I hope so. I hope so. Because if Mike Pence does the right thing, we win the election. All Vice President Pence has to do is send it back to the states to recertify and we become President and you are the happiest people. And Mike Pence is going to have to come through for us. And if he doesn't, that will be a sad day for our country. And they want to recertify their votes. They want to recertify, but the only way that can happen is if Mike Pence agrees to send it back. So I hope Mike has the courage to do what he has to do. And I hope he doesn't listen to the RINOs (Republicans in Name Only) and the stupid people that he's listening to. Trump Supporter: It's real simple. Pence betrayed us. Which apparently everybody knew he was going to and the President mentioned it, like five times when he talked. You can go back and watch the President's video. January 6th Attendee: I'm telling you what, I'm hearing that Pence, I heard that Pence just caved? Is that true? I'm hearing reports that Pence caved. I'm telling you, if Pence caved, we're gonna drag motherfuckers through the streets. You fucking politicians are gonna get fucking drug through the streets. January 6th Streamer: Yeah, I guess the hope is that there's such a show of force here that Pence will decide to just do the right thing according Trump. January 6th Crowd: Where is Pence? Bring out Pence! [chanting] Hang Mike Pence, hang Mike Pence. Rep. Pete Aguilar (D-CA): Although the President's Chief of Staff, Mark Meadows, has refused to testify before this committee, Mr. Meadows aide Ben Williamson, and White House Deputy Press Secretary Sarah Matthews testified that Mr. Meadows went to the dining room near the Oval Office to tell the President about the violence at the Capitol before the President's 2:24pm tweet. Narrator: President Trump tweeted, "Mike Pence didn't have the courage to do what should have been done to protect our Country and our Constitution, giving states a chance to certify a corrected set of facts, not the fraudulent or inaccurate ones which they were asked to previously certify. USA demands the truth!" Rep. Pete Aguilar (D-CA): Our investigation found that immediately after the president's 2:24pm tweet, the crowds both outside the capitol and inside the Capitol surged. Rep. Pete Aguilar (D-CA): The crowds inside the Capitol were able to overwhelm the law enforcement presence and the Vice President was quickly evacuated from his ceremonial Senate office to a secure location within the Capitol Complex. January 6 Committee Lawyer: Mr. Jacob, immediately before you and the Vice President were evacuated to a secure location within the Capitol, you hit send on an email to John Eastman explaining why his legal theory about the Vice President's role was wrong. You ended your email by stating that, quote, "thanks to your bullshit, we are now under siege." And Dr. Eastman replied, and this is hard to believe, but his reply back to you was "the siege is because you and your boss," presumably referring to the Vice President, United States, "did not do what was necessary to allow this to be aired in a public way so the American people can see for themselves what happened." Mr. Jacob, later that day, you wrote again to Dr. Eastman. In that email, you wrote, and I quote, "did you advise the President that in your professional judgment the Vice President DOES NOT have the power to decide things unilaterally?" And you ended that email saying, "it does not appear that the President ever got the memo." Dr. Eastman then replied, "he's been so advised" and he ends him email with quote, "but you know him. Once he gets something in his head, it's hard to get him to change course," close quote. Greg Jacob: Late that evening, after the Joint Session had been reconvened, Mr. Eastman emailed me to point out that, in his view, the Vice President's speech to the nation violated the Electoral Count Act, that the Electoral Count Act had been violated because the debate on Arizona had not been completed in two hours. Of course, it couldn't be, since there was an intervening riot of several hours. And the speeches that the majority and minority leaders had been allowed to make also violated the Electoral Count Act because they hadn't been counted against the debate time. And then he implored me, "now that we have established that the Electoral Count Act isn't so sacrosanct as you have made it out to be, I implore you one last time, can the Vice President, please do what we've been asking him to do these last two days, suspend the Joint Session, send it back to the States." Eric Herschmann: The day after, Eastman asked me about something dealing with Georgia and preserving something, potentially for appeal. And I said to him, "Are you out of your effing mind?" Right? I said, "I only want to hear two words coming out of your mouth from now on: 'orderly transition.' I don't want to hear any other effing words coming out of your mouth, no matter what, other than orderly transition. Repeat those words to me." January 6 Committee Lawyer: And what did he said? Eric Herschmann: Eventually, he said "orderly transition." I said, "Good, John. Now I'm going to give you the best free legal advice you're ever getting in your life. Get a great effing criminal defense lawyer. You're going to need it." And then I hung up on him. Rep. Pete Aguilar (D-CA): In fact, just a few days later, Dr. Eastman emailed Rudy Giuliani and requested that he be included on a list of potential recipients of a Presidential pardon. Dr. Eastman did not receive his presidential pardon. June 13, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: William Stepien, Former Trump Campaign Manager Chris Stirewalt, Former Fox News Political Editor Benjamin Ginsberg, Election Attorney BJay Pak, Former United States Attorney for the Northern District of Georgia Al Schmidt, Former City Commissioner of Philadelphia Matt Morgan, Former General Counsel, Trump Campaign Clips 10:15 Rep. Liz Cheney (R-WY): On January 2, the General Counsel of the Trump campaign, Matthew Morgan, this is the campaign's chief lawyer, summarized what the campaign had concluded weeks earlier, that none of the arguments about fraud or anything else could actually change the outcome of the election. Matt Morgan: Generally discussed on that topic was whether the fraud, maladministration, abuse or irregularities, if aggregated and read most favorably to the campaign, would that be outcome determinative and I think everyone assessment in the room, at least amongst the staff, Mark Short, myself and Greg Jacob, was that it was not sufficient to be outcome determinative. 14:50 Former President Donald Trump: You know, the things with bundling and all of the things that are happening with votes by mail, where 1000s of votes are gathered, and I'm not gonna say which party does it but 1000s of votes are gathered and they come in and they're dumped in a location and then all of a sudden you lose elections that you think you're going to win. Former President Donald Trump: The only way we're going to lose this election is if the election is rigged. Remember that. The only way we're going to lose this election. Former President Donald Trump: This is going to be a fraud like you've never seen. Did you see what's going on? Take a look at West Virginia mailman selling the ballots. They're being sold. They're being dumped in rivers. This is a horrible thing for our country. This is not as no this is not going to end well. 29:40 Chris Stirewalt: In the 40 or 50 years, let's say, that Americans have increasingly chosen to vote by mail or early or absentee, Democrats prefer that method of voting more than Republicans do. So basically, in every election, Republicans win election day, and Democrats win the early vote. And then you wait and start counting. And it depends on which ones you count first, but usually, it's election day votes that get counted first, and you see the Republican shoot ahead. And then the process of bailing and binding and unbinding all those mail in votes, in some states, like Pennsylvania, refuse to count the votes first. So you have to wait for all of that to come in. So in every election, and certainly a national election, you expect to see the Republican with a lead, but it's not really a lead. When you put together a jigsaw puzzle, it doesn't matter which piece you put in first, it ends up with the same image. So for us, who cares? But that's because no candidate had ever tried to avail themselves of this quirk. In the election counting system, we had gone to pains, and I'm proud of the pains we went to, to make sure that we were informing viewers that this was going to happen because of the Trump campaign. And the President had made it clear that they were going to try to exploit this anomaly. And we knew it was going to be bigger, because the percentage of early votes was higher, right? We went from about 45% of the votes being early and absentee to, because of the pandemic, that increased by about 50%. So we knew it would be longer. We knew it would be more. So we wanted to keep telling viewers, "Hey, look, the number that you see here is sort of irrelevant because it's only a small percentage of these votes." 1:06:05 Former Attorney General Bill Barr: And I was somewhat demoralized because I thought, boy, if he really believes this stuff he has, you know, lost contact with -- he's become detached from reality if he really believes this stuff. On the other hand, you know, when I went into this and would, you know, tell them how crazy some of these allegations were, there was never, there was never an indication of interest in what the actual facts are. 1:10:25 Jeff Rosen: There were instances where the President would say, people are telling me this, or I've heard this, or I saw on television, you know, this, this impropriety in Atlanta or Pennsylvania or something, and we were in a position to say, people have already looked at that and we know that you're getting bad information that that's, that's not correct. It's been demonstrated to be incorrect from our point of view. 1:14:55 Richard Donoghue: I tried to, again put this in perspective and to try to put it in very clear terms to the President. And I said something to the effect of "Sir we've done dozens of investigations hundreds of interviews. The major allegations are not supported by the evidence developed. We've looked at Georgia, Pennsylvania, Michigan, Nevada. We're doing our job. Much of the info you're getting is false." June 9, 2022 House Select Committee to Investigate the January 6th Attack on the United States Capitol Witnesses: U.S. Capitol Police Officer Caroline Edwards Nick Quested, Filmmaker and Documentarian Clips Bill Bar: I had three discussions with the President that I can recall. One was on November 2, one was on December 1, and one was on December 14. And I've been through sort of the give and take of those discussions. And in that context, I made it clear I did not agree with the idea of saying the election was stolen and putting out this stuff, which I told the President was bullshit. Robert Schornack: What really made me want to come was the fact that, you know, I had supported Trump all that time. I did believe, you know that the election was being stolen. And Trump asked us to come. Eric Barber: He personally asked for us to come to DC that day. And I thought, for everything he's done for us, if that's the only thing he's gonna ask me, I'll do it. Former President Donald Trump: We're gonna walk down to the Capitol. Interviewer: Do you recall President Trump mentioning going to the Capitol during his speech? Eric Barber: Oh, yeah. So that's one of my disappointments. He said he was gonna go go with us that he was gonna be there. John Wright: I know why I was there. And that's because he called me there. And he laid out what is happening in our government. He laid it out. George Meza: I remember Donald Trump telling people to be there. Right. I mean, to support. Interviewer: You mentioned that the President asked you. Do you remember a specific message? Daniel Herendeen: Basically, he asked for us to come to DC and big things are gonna happen. Matthew Walter: What got me interested is he said I have something very important to say on January 6, or something like that. That's what got me interested to be there. Robert Schornack: You know, Trump has only asked me for two things. He asked me for my vote and he asked me to come on January 6. May 12, 2021 House Committee on Oversight and Reform Witnesses: Chris Miller, Former Acting Secretary of Defense Robert Contee, Chief of the Metropolitan Police Department Clips 40:52 Rep. Carolyn Maloney (D-NY): Mr. Miller, you were the Acting Secretary of Defense on January 6th, did President Trump as the commander in chief of the US Armed Forces call you during the January 6 attack to ensure the capital was being secured? Mr. Miller? Chris Miller: No, I had all the authority I needed from the president to fulfill my constitutional duties. 3:12:18 Rep. Hank Johnson (D-GA): Were you ordered to delay deployment of troops? Chris Miller: 110% Absolutely not. No, that is not the case. February 23, 2021 Senate Committee on Homeland Security and Governmental Affairs and Committee on Rules and Administration Witnesses: Robert Contee, Acting Chief of Police for the Metropolitan Police Department Steven Sund, Former Chief of the United States Capitol Police Clips 39:21 Robert Contee: MPD is prohibited by federal law from entering the Capitol or its grounds to patrol, make arrests or served warrants without the consent request of the Capitol Police board. 39:32 Robert Contee: The President of the United States, not the Mayor of the District of Columbia, controls the DC National Guard. 1:05:36 Sen. Amy Klobuchar (D-MN): Mr. Sund, you stated in your written testimony that you first made a request for the Capitol Police board to declare an emergency and authorized National Guard support on Monday January 4th, and that request was not granted. Steven Sund: That is correct, ma’am. 1:05:47 Sen. Klobuchar (D-MN): Your testimony makes clear that the current structure of the Capitol Police corps resulted in delays in bringing in assistance from the National Guard. Would you agree with that? That’s one of the things we want to look at. Steven Sund: Yes, ma’am. 1:07:23 Sen. Klobuchar (D-MN): Mr. Sund your written testimony states that you had no authority to request the assistance of the National Guard without an emergency declaration of the Capitol Police board. On what rule, regulation or authority did you base that view? Steven Sund: I’d have to go back and look at the specific rule, but it’s a standard. It’s a standing rule that we have. I cannot request the National Guard without a declaration of emergency from the Capitol Police board. It’s kind of interesting because it’s very similar to the fact you know, I can’t even give my men and women cold water on an excessively hot day without a declaration of emergency. It’s just a process that’s in place. 2:39:22 Sen. Jeff Merkley (D-OR): Have you ever held a drill to respond this situation where a crowd pushes past the exterior barricades? Steven Sund: Not this level of situation no, sir. Executive Producer Recommended Sources Jul 19, 2022. U.S. Senator Bernie Sanders. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Dec 23, 2022 • 1h 21min

CD265: Policing FTX

FTX, at one point the world’s third largest cryptocurrency exchange, went bankrupt, causing the entire cryptocurrency industry to crash. In this episode, hear highlights from Congressional testimony that will explain how FTX was able to grow so large while committing blatant fraud, how it’s possible that the government didn’t know and didn’t do anything to stop it, and hear about a Senate bill that’s branded as a solution but has concerning flaws of it’s own. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes What is FTX? Timothy Smith. Dec 22, 2022. Investopedia. Crypto Regulation Kyle Barr. Dec 1, 2022. Gizmodo. David Dayen. Nov 23, 2022. The American Prospect. David Dayen. Nov 17, 2022. The American Prospect. David Dayen. Nov 10, 2022. The American Prospect. Tom Emmer et al. Mar 16, 2022. emmer.house.gov. Lead-up to FTX Collapse Elizabeth Napolitano. Nov 9, 2022. NBC News. Tom Wilson and Angus Berwick. Nov 8, 2022. Reuters. Tracy Wang and Oliver Knight. Nov 6, 2022. Tracy Wang and Oliver Knight. Nov 6, 2022. CoinDesk. Ian Allison. Nov 2, 2022. CoinDesk. Seth. P Rosebrock, Assistant General Counsel, Enforcement, FDIC. Aug 18, 2022. FDIC. Tom Emmer André Beganski. Dec 11, 2022. Decrypt. Tony Romm. Dec 8, 2022. The Washington Post. Emily Brooks and Mychael Schnell. Nov 15, 2022. The Hill. FTX Collapse Shane Shifflett, Rob Barry, and Coulter Jones. Dec 5, 2022. The Wall Street Journal. Alexander Osipovich. Dec 3, 2022. The Wall Street Journal. David Gura. Nov 23, 2022. NPR. Steven Zeitchik. Nov 20, 2022. The Washington Post. Nov 17, 2022. PACER. Angus Berwick. Nov 11, 2022. Reuters. Jacob Bogage and Tory Newmyer. Nov 11, 2022. The Washington Post. Vicky Ge Huang, Alexander Osipovich, and Patricia Kowsmann. Nov 11, 2022. The Wall Street Journal. Lobbying and Campaign Donations Tory Newmyer and Steven Zeitchik. Dec 1, 2022. The Washington Post. Tory Newmyer and Peter Whoriskey. Nov 28, 2022. The Washington Post. Tony Romm. Nov 17, 2022. The Washington Post. Paul Kiernan. Nov 14, 2022. The Wall Street Journal. Brian Schwartz. Nov 14, 2022. CNBC. Tory Newmyer. Nov 12, 2022. The Washington Post. Luis Melgar et al. Oct 24, 2022. The Washington Post. Freddy Brewster. Aug 12, 2022. Los Angeles Times. Aftermath of the FTX Collapse Dec 12, 2022. Reuters. Emily Flitter, David Yaffe-Bellany and Matthew Goldstein. Dec 7, 2022. The New York Times. Alexander Osipovich, Alexander Saeedy and Alexander Gladstone. Dec 4, 2022. Mar 10, 2022. Cryptopedia. December 13 Hearing Dec 8, 2022. House Financial Services Committee. House Financial Services Committee. Sam Bankman-Fried Indictment Dec 13, 2022. The New York Times. Bills Audio Sources December 13, 2022 House Committee on Financial Services Witness: John J. Ray III, CEO, FTX Group Clip Transcripts Rep. Emanuel Cleaver (D-MO): Have you read the full testimony that was planned by our missing guest [Sam Bankman-Fried]? John Ray I have not read his full testimony. Some pieces of it been relayed to me, but I've not read it. I've not read one word of it actually. Rep. Emanuel Cleaver (D-MO): Yeah, I don't know him personally and probably don't want to. But this testimony is so disrespectful. I mean, there's not a person up here would like to show this to their children. In line two of this message, he says, and I quote, "I would like to start out by firmly stating under oath...* And yeah, I can't even say it publicly. The next two words, absolutely insulting. This is the Congress of the United States. Rep. Warren Davidson (R-OH): So when when customers deposited funds into their FTX accounts, where did the cash go? John Ray: Well, sometimes the money wasn't deposited in the FTX account it was sent to Alameda to begin with. Rep. Warren Davidson (R-OH): It was misdirected from from the start straight to Alameda. John Ray: There was certainly some time period where there's no bank account at .com and then ultimately, if you look at the structure of this, Alameda is essentially a customer on that .com exchange, and effectively, you know, borrowed money from or just transferred money from FTX customers to take its own positions on the Alameda hedge fund. Rep. Patrick McHenry (R-NC): So Alameda research and the venture capital business, what did Alameda research do? John Ray: Essentially made crypto investments, engaged in margin trading, took long and short positions in crypto, essentially invested in crypto. But of course, we now know also invested in over $5 billion of other assets which are in a variety of sectors. Patrick McHenry (R-NC): Can you describe the differences between the FTX.com and FTX.us silos? John Ray: Yes. Very simply FTX.us was for US citizens who wanted to trade crypto; FTX.com, US citizens were not allowed to trade on that exchange. That's very simple. And I would make one other comment, which is separate apart from any of those two silos. It was ledger x, which is a regulated entity regulated by the CFTC, solvent and separate from the FTX.us silo. Patrick McHenry (R-NC): Okay, and that is a distinct silo, that's a distinct company? John Ray: That is a distinct company within the US silo, yes. Patrick McHenry (R-NC): Okay. Patrick McHenry (R-NC):: What was the relationship between FTX.com and FTX.us? Was is there a distinction between the two? John Ray: There was a public distinction between the two. What we're seeing now is that the crypto assets for both ftx.com and for FTX.us were housed in the same database. It's called the AWS system, which is just an acronym for Amazon Web Services. It was all housed in the same web format. Patrick McHenry (R-NC):: And is that distinct from Alameda's assets? John Ray: Yes, it is. John Ray: In essence you know, Alameda was a user, effectively a customer, of FTX.com. That's how it was essentially structured. John Ray: There was no audit at Alameda, no audit at the venture silo. There was audit at the US silo and also audit at the the .com silo. I can't speak to the integrity or quality of those audits. We're reviewing, obviously, the books and records. And as I've said earlier, you know, much of those books and records were maintained on a fairly unsophisticated ledger ledger which works workbooks. John Ray: It's an extensive list, it really crosses the entire spectrum of the company, from lack of lists of bank accounts, hundreds of bank accounts dispersed all over the world, lack of a complete list of employees and their functions by group or name, extensive use of independent contractors as opposed to employees, lack of insurance that you'd normally would see in certain businesses, either inadequate insurance or complete gaps in insurance. For example, the Alameda silo had no insurance whatsoever. So those are I mean, there's, the list goes on and on. You know, we could spend all day on them. John Ray: While many things are unknown at this stage, we're at a very preliminary stage, many questions remain, we know the following. First customer assets at ftx.com were commingled with assets from the Alameda trading platform. That much is clear. Second, Alameda used client funds to engage in margin trading, which exposed customer funds to massive losses. Third, the FTX group went on a spending binge in 2021 and 2022, during which $5 billion was spent on a myriad of businesses and investments, many of which may only be worth a fraction of what was paid for them. Fourth, loans and other payments were made to insiders in excess of $1.5 billion. Fifth, Alameda's business model as a market maker required funds to be deployed to various third party exchanges, which were inherently unsafe and further exacerbated by the limited protections offered in certain of those foreign jurisdictions. John Ray: I accepted the position of Chief Executive Officer of FTX in the early morning hours of November 11 [2022]. It immediately became clear to me that chapter 11 was the best course available to preserve any remaining value of FTX. Therefore, my first act as CEO was authorized the chapter 11 filings. John Ray: It's virtually unlimited in terms of the lack of controls: no centralized records on banking, no daily reconciliations of crypto assets, silos where there's no insurance, inadequate insurance, no independent board, no safeguards that limit, who controls and asset. So senior management literally could get access to any of the accounts in any of the silos. No separateness between customer money and other customer money or other other assets. It's virtually unlimited in terms of the lack of controls. And that's really the point of the unprecedent comment. I've just never seen anything like it in 40 years of doing restructuring work and corporate corporate legal work. It's just a dearth of of information. John Ray: But again, users had multiple accounts. For example, if they had a different trading position, they may have opened multiple accounts. We know it's a big number. It's in the millions on the customer accounts, and we know it's several billion dollars in losses. Assigning those losses to customer accounts will be our next challenge. John Ray: The FTX group's collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people's money or assets. Some of the unacceptable management practices identified so far include the use of computer infrastructure that gave individuals and senior management access to systems that stored customers' assets without security controls to prevent them from redirecting those assets; the storing of certain private keys to access hundreds of millions of dollars in crypto assets without effective security controls or encryption; the ability of Alameda to borrow funds held at FTX.com to be utilized for its own trading or investments without any effective limits whatsoever; the commingling of assets; the lack of complete documentation for transactions involving nearly 500 separate investments made with FTX group funds and assets. In the absence of audited or reliable financial statements, the lack of personnel and financial and risk management functions, and the absence of independent governance throughout the FTX group, a fundamental challenge we face is there in many respects we are starting from near zero in terms of the corporate infrastructure and record keeping that one would expect in a multibillion dollar corporation. John Ray: The FTX group is unusual in the sense that, you know, I've done probably a dozen large scale bankruptcies over my career, including Enron, of course. Every one of those entities had some financial problem or another, they have some characteristics that are in common. This one is unusual. And it's unusual in the sense that literally, you know, there's no record keeping whatsoever. It's the absence of record keeping. Employees would communicate, you know, invoicing and expenses on on Slack, which is essentially a way of communicating for chat rooms. They use QuickBooks, a multibillion dollar company using QuickBooks. Rep. Ann Wagner (R-MO): QuickBooks? John Ray: QuickBooks. Nothing against QuickBooks, it's very nice tool, just not for a multibillion dollar company. There's no independent board, right? We had one person really controlling this. No independent board. That's highly unusual in the size company this is. And it's made all the more complex because we're not dealing with, you know, widgets or, you know, something that's tangible. We're dealing with with with crypto, and the technological issues are made worse when you're dealing with an asset such as crypto. John Ray: I've just never seen an utter lack of record keeping. Absolutely no internal controls whatsoever. John Ray: The operation of Alameda really depended based on the way it was operated for the use of customer funds. That's the major breakdown here of funds from ftx.com, which was the exchange for non US citizens, those funds were used at Alameda to make investments and other disbursements. John Ray: There's no distinction whatsoever. The owners of the company could really run free reign across all four silos. John Ray: The loans that were given to Mr. Bankman-Fried, not just one loan it was numerous loans, some of which were documented by individual promissory notes. There's no description of what the purpose of the loan was. In one instance, he signed both as the issuer of the loan, as well as the recipient of the loan. But we have no information at this time as to what the purpose or the use of those funds were. And that is part of our investigation. John Ray: At the end of the day, we're not going to be able to recover all the losses here. Money was spent that we'll never get back. There will be losses on the international side. We're hopeful on the US side. He'll answer to others related to what happened here. Our job is just to find the assets and try to get customers their money back as quickly as possible. John Ray: Essentially, they had two exchanges that allowed users to trade crypto, and then there was the hedge fund. It's as simple as that. The users were allowed to make a variety of investments. They had a more expansive ability to trade crypto if you are a non-U.S. citizen on the .com exchange, but I know what's been described publicly is very complex. It is to some extent, but essentially, you had two exchanges, and you had a hedge fund. Inside both the US silos I've mentioned and inside the silos for .com there were regulated entities. We have regulated entities that are, for example, in Japan that are solvent, we had a regulated entity, ledger X, that was solvent. Those are sort of distinct from the other basic operations that we had, which are the two exchanges. John Ray: The principal issue that the company is facing in the crypto area, and from a technology perspective, it is different from the other bankruptcies because it's not a plane, not a boat. It's this crypto asset and it has inherently some difficulties. You know, the assets can be taken or lost. We have assets there in what are called Hot wallets, and those are in cold wallets. Hot wallets are very vulnerable to to hacking. If you've done any looking on the internet, you'll find that hacking is almost ordinary course in this business sector. They're very, lots of vulnerability to the wallets. So that's this company, unfortunately had a very, very challenging record here. You know, for some transfers there was no pathway for it. Our keys aren't stored in a centralized location. We don't know where all of our wallets are. Passwords were sometimes kept in just plain text format. So this company was sort of uniquely positioned to fail. John Ray: So funds were taken from customers, funds were invested, trading losses incurred in Alameda and then funds were deployed, that will never be valued at the same dollar amount. There was over $5 billion of investments made. Certainly, there's some value there and we'll try to get that value and sell those assets. But oftentimes, even when he made those sorts of investments, whether it was directly or through others in management, sometimes he would do that really without any pro forma or any valuation. Not really quite sure how some of the purchase price numbers were derived. So it gives you a sort of worry obviously, that the purchases were overvalued so there's a concern there as well. John Ray: Alameda was a customer, if you will, of the exchange and it's through that customer relationship, plus other arrangements, that allowed Alameda to borrow those funds, and then pick positions on the exchange like anyone, you know, who would hedge an asset in the market. He had unusually large positions, of course, and sometimes they were wrong in those positions, and they resulted in big losses. But ultimately, the commingling issue is the same in a different issue. He took the money from FTX to cover those positions and ultimately, when customers went to get their money back from .com there was a run on the bank. John Ray: The Alameda fund, well that's just the fund that drew resources from the exchanges, so it's really separate, it was not for customers per se, it was just simply a hedge fund. John Ray: For structural purposes and just for ease of presentation, we tried to take the over 100 entities and we put those in four silos. To demystify that, it's very simple. There was a U.S. silo, which was the FTX.us exchange for US investors. There was an international exchange called FTX.com. Again, for non-U.S. persons that invested in crypto. There was Alameda, which is purely a crypto hedge fund, which made other investments, venture capital type investments. Then there's a fourth entity which was purely investments. And although our investigation is not complete, those investments were most likely made with either Alameda money or money that originally came from ftx.com. But that fourth silo is just purely investments Rep. Patrick McHenry (R-NC): And who owned those four silos? John Ray: All those entities are owned or controlled by Sam Bankman-Fried. Rep. Brad Sherman (D-CA): Now I've heard from some on the other side criticizing the SEC and in July in this room I criticized the Head of Enforcement at the SEC for not going after crypto exchanges. But the fact is that without objection I'd like to put on the record a letter signed by 19 Republican members designed to push back on the SEC, a brushback pitch if you're familiar with baseball, attacking the SEC for paying attention to and I quote, "the purported risks of digital assets." And I'd like to put on the record without objection comments from eight members made in this room that were designed to attack the SEC as being Luddite and anti-innovation for their efforts. Rep. Nydia Velázquez (D-NY): Mr. Ray, a number of their debtors in the FTX group are located in offshore jurisdictions. Will this complicate the efforts to retrieve the assets of those there? If so why? John Ray: No, I don't think it will complicate it at all. The various jurisdictions, historically in bankruptcy, and I've been in a number of cross border situations, the jurisdictions will cooperate with each other. The regulators in all these jurisdictions, I think, realize that everyone's there for a common purpose, to protect the victims and recover assets for the victims of these situations. Rep. Nydia Velázquez (D-NY): How much have you been able to secure and where are most of these assets located? John Ray: We've been able to secure over a billion dollars of assets. We've secured those two cold wallets in a secure location. It's an ongoing process, though, which will take weeks and perhaps months to secure all the assets. Rep. Nydia Velázquez (D-NY): Are most creditors located in the US or foreign jurisdictions. John Ray: The majority of the creditors trade through the .com silo and are outside of this jurisdiction, although there are some foreign customers that are on the US silo, and vice versa. Rep. Ann Wagner (R-MO): Reports suggest that ftx.com transferred more than half of its customer funds, roughly $10 billion, to Alameda research. Is that accurate, sir? John Ray: Our work is not done, we don't have exact numbers for you today, but I will say it's several billion dollars, in that range, so we know that the size of the harm was significant. Rep. Maxine Waters (D-CA): Have you seen evidence of such a cover up? Have you seen evidence that there was any independent governance of Alameda separate and apart from that of the exchange? John Ray: The operations of the FTX group were not segregated. It was really operated as one company. As a result, there's no distinction virtually, between the operations of the company and who controlled those operations. Rep. Maxine Waters (D-CA): Did FTX have sufficient risk management systems and controls to appropriately monitor any leverage the business took on and the interconnections it had with businesses, like again, Alameda. John Ray: There were virtually no internal controls and no separateness whatsoever. December 1, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witness: Rostin Behnam, Chairman, Commodity Futures Trading Commission Clip Transcripts 18:30 Debbie Stabenow (D-MI): I've said this before and I'll say it again: the Digital Commodities Consumer Protection Act does not -- does not -- take authority away from other financial regulators. Nor does it make the CFTC the primary crypto regulator, because crypto assets can be used in many different ways. No single financial regulator has the expertise or the authority to regulate the entire industry. 24:30 John Boozman (R-AK): Many have asked why is the Ag Committee involved in this? The Ag Committee is involved because this committee and no other committee in the Senate is responsible for the oversight of the nation's commodity markets. Bitcoin, although a crypto currency, is a commodity. It's a commodity in the eyes of the federal courts and the opinion of the SEC Chairman, there is no dispute about this. If there are exchanges where commodities are traded, be it wheat, oil, or Bitcoin, then they must be regulated. It's simply that simple. 32:45 Rostin Behnam: I have asked Congress directly for clear authority to impose our traditional regulatory regime over the digital asset commodity market. 33:00 Rostin Behnam: I have not been shy about my encouragement of bills that contemplate shared responsibility for the CFTC and the Securities Exchange Commission, where the SEC would utilize its existing authority and reporting regime requirements for all security tokens, while the CFTC would apply its market based rules for the more limited subset of commodity tokens, which do not have the same characteristics of security tokens. 41:00 Rostin Behnam: I can though share with this committee with respect to me, my team and I have taken an initial review of my calendar and what we've observed is that my team and I met with Mr. Bankman-Fried and his team. Over the past 14 months, we met 10 times in the CFTC office at their request, all in relation to this DCO this Clearinghouse application. Nine out of the 10 times we were in Washington, one was at a widely held conference in Florida earlier this year. In addition, there were two phone calls, I believe, and a number of messages, all in relation to the DCO application, providing us updates suggesting that they were answering questions from different divisions, and trying as I said, to doggedly move the application along and to get it approved. 48:00 Sen. John Boozman (R-AK): If ftx.com had been a registered U.S. exchange, would the CFTC have been able to mitigate what happened. Rostin Behnam: Senator, you know, with our current authority, the answer is now. We need the authority to get into a CFTC registered exchange, as you point out. If we had that authority, and they were registered, given what we know from the facts about conflicts of interest, commingling funds, books and records, we would have been able to prohibit it. And I would point to what we're doing with Ledger X. On a daily basis our staff is in direct communication not only with Ledger X, but the custodians themselves, able to identify customer property, and customer money. Imagine that scenario with FTX.us if we had a daily lens into the location of customer money and customer property, you can imagine, given what we've learned about what's happened with FTX, we could have certainly prohibited many of the actions that we're hearing about. 1:16:00 Rostin Behnam: In terms of regulation of cash markets, right, the spot market, we simply do not have authority to register cash market exchanges or any intermediary broker dealer entity within that structure and that's what concerns me, this is the gap. 1:59:30 Rostin Behnam: Unfortunately, when we act, it's often after the fact because the information that allows us to bring an enforcement action in digital asset cash commodity markets, is only because information is coming to us from outsiders, from referrals, from tips, from whistleblowers, and this is in stark contrast to some of the surveillance tools and examination tools that we would have if we had a comprehensive regulatory framework over digital asset commodities. 2:07:00 Sen. Dick Durbin (D-IL): There'll be a reporter waiting in the hall -- I've already talked to her this morning -- who will ask you, "Did he ever contribute to your campaign?" I said "Oh, no, I never heard of the man." She said "You're wrong, Senator, he contributed to you." So the cryptocurrency people are active politically. And they are trying to achieve a political end here. It is their right as citizens of this country to do that. But it really calls on us to make sure that whatever we do is credible under those circumstances. 2:22:30 Rostin Behnam: I can't speak to what Mr. Bankman-Fried or anyone at FTX was thinking when they were advocating for regulation, but the remarkable thing is to think about it in the context of compliance and what we've learned about the FTX entities and just thinking about the bill that Senator Stabenow and Boozman introduced, they would have been so far out of compliance that it just wouldn't have even been possible. September 15, 2022 Senate Committee on Agriculture, Nutrition, and Forestry Witnesses: Rostin Behnam, Chairman, Commodity Futures Trading Commission Todd Phillips, Director, Financial Regulation and Corporate Governance, Center for American Progress Shelia Warren, Chief Executive Officer, Crypto Council for Innovation Christine Parker, Vice President, Deputy General Counsel, Coinbase Heath Tarbert, Chief Legal Officer, Citadel Securities Denelle Dixon, Chief Executive Officer, Stellar Development Foundation December 8, 2021 House Committee on Financial Services Witnesses: Jeremy Allaire, Co-Founder, Chairman and CEO, Circle Samuel Bankman-Fried, Founder and CEO, FTX Brian P. Brooks, CEO, Bitfury Group Charles Cascarilla, CEO and co-Founder, Paxos Trust Company Denelle Dixon, CEO and Executive Director, Stellar Development Foundation Alesia Jeanne Haas, CEO, Coinbase Inc. and CFO, Coinbase Global Inc. Clip Transcripts 23:30 Sam Bankman-Fried: We are already regulated and licensed. We have many licenses globally. Here in the United States, we are regulated by the states under the money service business and money transmitting regime, and we are regulated nationally by the CFTC where we have a DCO, a DCM, a swap execution facility, and other licensure. 1:13:30 Sam Bankman-Fried: One of the really innovative properties of cryptocurrency markets are 24/7 risk monitoring and engines. We do not have overnight risk or weekend risk or holiday risk in the same way traditional assets do, which allow risk monitoring and de risking of positions in real time to help mitigate volatility. We've been operating for a number of years with billions of dollars of open interest. We've never had customer losses, clawbacks or anything like that. Even going through periods of large movements in both directions. We store collateral from our users in a way which is not always done in the traditional financial ecosystem to backstop positions. And the last thing that I'll say is if you look at what precipitated some of the 2008 financial crisis, you saw a number of bilateral bespoke non-reported transactions happening between financial counterparties which then got repackaged and releveraged again and again and again, such that no one knew how much risk was in that system until it all fell apart. If you compare that to what happens on FTX or other major cryptocurrency venues today, there is complete transparency about the full open interest. There is complete transparency about the positions that are held. There is a robust, consistent risk framework. 1:34:00 Sam Bankman-Fried: In addition to a bunch of international licenses in the United States, we are participating in that system you referenced with the money transmitter and money service businesses license is in addition to that, however, we are also licensed by the CFTC. We have a DCO, a DCM, and other licensure from them through FTX.us derivatives and we look forward to continuing to work with them to build out our product suite. We just submitted a 800 page, I believe, proposal to them a few days ago, which we're excited to discuss and we're also happy to talk with other regulators about potential products in the United States. 2:37:00 Rep. Tom Emmer (R-MN): Now it's my understanding that FTX uses surveillance trade technology akin to the technology national Securities Exchanges use to protect investors and ensure sound spot markets. What does this technology and any other tools FTX uses to protect the spot market from fraud and manipulation look like? Sam Bankman-Fried: Yeah. So, you know, like other exchanges, we do have these technologies in addition to the, you know, new customer policies that we can identify individuals associated with trades. We have surveillance for unusual trading activity. We have manual inspections of anything that you know, gets flagged either by the automated surveillance or by manual inspection. And we do this with the trading activity with deposits and withdrawals and everything else. Rep. Tom Emmer (R-MN): Sounds like you're doing a lot to make sure there is no fraud or other manipulation. Thank you Mr. Bankman-Fried, again, for helping us understand the extensive guardrails a cryptocurrency exchange like FTX has in place to ensure sound crypto spot markets for investors. 2:52:30 Rep. Cindy Axne (D-Iowa): Mr. Bankman-Fried, I'd like to start by asking you the first question. FTX.us has a derivatives platform and recently bought ledger x as part of that. Is that correct? Sam Bankman-Fried: Yes. Rep. Cindy Axne (D-Iowa): Okay, thank you. And that platform is registered with the CFTC. Is that correct? Sam Bankman-Fried: Yep. Rep. Cindy Axne (D-Iowa): Okay, perfect. So I just want to clarify something. And this isn't to say anybody's doing any wrong. It's just to get the lay of the land. You also have an exchange for Bitcoin and other tokens, but that is not registered with either the CFTC or the SEC. Is that correct? Sam Bankman-Fried: That's correct. Currently, neither of them are primary markets regulated for spot Bitcoin to USD markets. Rep. Cindy Axne (D-Iowa): Okay, thank you. And I know you're registered as a money transmitter, but that's not the same kind of oversight that we'll see from a federal market regulator. I also sit on the Agriculture Committee, which oversees the CFTC, so a gap like this is especially concerning to me. And the big problem that I see here, from what I understand, is that the CFTC doesn't have regulatory authority for spot trading of commodities, just their derivatives. So that leaves consumers with inconsistent protections, which is a concern that I have. 2:55:00 Rep. Cindy Axne (D-Iowa): Bitcoin, which has almost a trillion dollars invested in it, has CFTC oversight for people who are trading futures and options, but not for people who are trading the currency itself. Is that right? Sam Bankman-Fried: That is essentially correct. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Dec 11, 2022 • 1h 2min

CD264: Cryptocurrencies and Blockchain

FTX, a large cryptocurrency exchange, recently went bankrupt, leading to calls for government regulation of cryptocurrencies. But you might be wondering, what are cryptocurrencies? In part one of this two-part series, listen to expert testimony provided over a four-year period informing Congress about the cryptocurrency industry, the promise of blockchain, problems - both real and overblown - with this new technology, and how best to regulate this complicated industry. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes Proof of Work Jake Frankenfield. May 2, 2022. Investopedia. Initial Coin Offering (ICO) Jake Frankenfield. Aug 18, 2022. Investopedia. Sherwin Dowlat. Jul 11, 2018. Satis Group. Madison Cawthorn The Associated Press. Dec 7, 2022. NPR. Regulations Cheyenne Ligon. Dec 5, 2022. CoinDesk. Bills Sponsor: Sen. Debbie Stabenow Audio Sources January 20, 2022 House Committee on Energy & Commerce, Subcommittee on Oversight and Investigations Witnesses: , Weill Family Foundation and Joan and Sanford I. Weill Professor, Jacobs Technion-Cornell Institute, Cornell Tech , Chief Executive Officer, Soluna Computing, Inc. , Chief Executive Officer, BitFury , Former Chief Executive Officer, Chelan County Public Utility District and Bonneville Power Administration , Shareholder Jordan Ramis P.C. June 16, 2021 House Committee on Financial Services, Subcommittee on National Security, International Development and Monetary Policy Witnesses: , Global Head of Policy & Regulatory Affairs, Chainalysis , Senior Director, Center on Economic and Financial Power, Foundation for Defense of Democracies February 25, 2021 House Financial Services Committee, Subcommittee on National Security, International Development and Monetary Policy Witness , Former Assistant Secretary for Terrorist Financing and Financial Crimes, U.S. Department of the Treasury July 30, 2019 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine regulatory frameworks for digital currencies and blockchain, including S. 2243, to amend the Expedited Funds Availability Act to require that funds deposited be available for withdrawal in real-time. Witnesses: , Co-Founder, Chairman and Chief Executive Officer, Circle, on behalf of The Blockchain Association , Specialist in International Trade and Finance, Congressional Research Service , Professor of Law, University of California, Irvine School of Law October 11, 2018 Senate Committee on Banking, Housing, and Urban Affairs Committee concluded a hearing to examine the cryptocurrency and blockchain ecosystem, including S. 3179, to require the Comptroller General of the United States to carry out a study on how virtual currencies and online marketplaces are used to buy, sell, or facilitate the financing of goods or services associated with sex trafficking or drug trafficking. Witnesses: , Professor of Economics and International Business, New York University Stern School of Business , Director of Research, Coin Center Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Nov 28, 2022 • 1h 33min

CD263: Republicans Take the House

The results are in: The Democrats will keep the Senate, the Republican will take the House. In this episode, in preparation for the 118th Congress, Jen analyzes the detailed policy documents released by the House Republicans to see what they could reasonably accomplish, who their policies would help or hurt, and how they will likely wield their power in a politically divided Congress. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Recommended Congressional Dish Episodes The Southern Border David J. Bier. Sep 14, 2022. Cato Institute. May 2022. The Healthy Future Task Force. Jul 2022. American Security Task Force. American Federation of Teachers. Sean Altekruse et al. January 17, 2020. PLOS One 15(1). Tiffany Stecker. Feb 20, 2019. Bloomberg Law. Censorship Sep 2022. China Sep 2022. China Task Force. Commitment to America Megan Loe. Oct 25, 2022. Verify. House Republicans. House Republicans. Sep 20, 2022. House Republicans. Sep 2022. Jobs and the Economy Task Force. Energy and the Environment August 9, 2022. The Energy, Climate, & Conservation Task Force. Mining Sep 2022. The Energy, Climate, & Conservation Task Force. John Emeigh. Jun 2, 2022. KXLF Butte. Betsy Smidinger. August 30, 2021. U.S. Environmental Protection Agency. U.S. Environmental Protection Agency. Ryan DeMars. 2012. Teach the Earth. Clark Fork Watershed Education Program. Dams Mar 2, 2021. MIT Climate Portal. Fossil Fuels Jun 17, 2022. The Energy, Climate, & Conservation Task Force. Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Jeff Brady and Neela Banerjee. Jun 9, 2021. Gutting Environmental Law Jun 10, 2022. The Energy, Climate, & Conservation Task Force. Pesticides Jul 15, 2022. The Energy, Climate, & Conservation Task Force. Jul 8, 2021. Cancer Treatment Centers of America. Emily Dixon. Feb 15, 2019. CNN. Water May 11, 2015. NPR. Seth Siegel with Naty Barak. Jun 1, 2017. Real Assets Adviser 4(6). Healthcare Aug 2022. The Healthy Future Task Force. Jul 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Jun 2022. The Healthy Future Task Force. Financial Regulations Sep 2022. Jobs & the Economy Task Force. Sep 2022. Jobs & the Economy Task Force. Jun 2022. The Energy, Climate, & Conservation Task Force. Parents Bill of Rights Committee on Education & Labor Republicans. Committee on Education & Labor Republicans. 2014 Government Funding 113th Congresss. 113th Congress. Oct 16, 2013. Clerk of the U.S. House of Representatives. Workforce Education Jul 2022. Jobs & the Economy Task Force. Speak Out Act 117th Congress. Emilie Shumway. Nov 16, 2022. Legal Dive. Respect for Marriage Act 117th Congress. Annie Karni. Nov 16, 2022. The New York Times. Maggie Astor. Nov 16, 2022. The New York Times. Al Weaver. Nov 16, 2022. The Hill. Soon-to-be Laws Audio Sources Sep 23, 2022 Kevin McCarthy on YouTube Clips Rep. Jim Jordan (R-OH): They told us so many things that turned out not to be accurate. I mean, just think about it, they told us this thing didn't come from a lab. Sure looks like it did. But they want us to believe it was a bat to a penguin to Joe Rogan. And then we all got, it right? I'm just a country boy from Ohio. But I kind of think it probably came from a lab. I asked Dr. Burks a question three months ago in a hearing. I said Dr. Burks, when the Biden administration told us that the vaccinated couldn't get it, were they guessing or lying? Interesting. She paused and said, Well, Congressman, I like to think they hoped. I said, so it was a guess, a lie, or a hope. I'm not against the vaccine. I'm just saying that we're big boys and girls, we can handle the truth. Give us the facts. We are committed to doing the investigations that need to be done. Rep. Kevin McCarthy (R-CA): On our very first bill we're going to repeal 87,000 IRS agents. Rep. Kevin McCarthy (R-CA): We believe in fairness. We should ensure women only compete in women's sports. Rep. Steve Scalise (R-LA): We will have oversight hearings on what happened. Who was responsible for opening up America's southern border? How many have come in? How many are on the terrorist watch list that we know of, and when will we start doing something about it? In our commitment to America, we talk about securing America's border and holding them accountable. We will give Secretary Mayorkas a reserved parking spot, he will be testifying so much about this. So that's the kind of oversight we're going to be doing. February 5, 2014 “Little fish” montage featuring Former Rep. Doc Hastings (R-WA), Former Rep. Devin Nunes (R-CA), and Rep. Kevin McCarthy (R-CA). October 8, 2013 Rep. Pete Sessions (R-TX): I am very proud of not only what our Speaker is doing but of our majority leader, ERIC CANTOR, and our whip, KEVIN MC CARTHY. October 1, 2013 Former Rep. Phil Gingrey (R-GA): In fact, House Republicans have passed three continuing resolutions, or temporary spending bills, to keep this government open and to either defund or to delay ObamaCare—which the majority of Americans support. They were against it 31⁄2 years ago; they are against it today; and they support what we are doing in the Republican House of Representatives. I praise and commend Speaker JOHN BOEHNER and the leadership of ERIC CANTOR and KEVIN MCCARTHY for the strength that they have had in regard to this and for being so inclusive for every single member of our caucus. 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Nov 12, 2022 • 1h 30min

CD262: Inside C-SPAN with Howard Mortman

As we wait for the final results of the midterm elections to determine which party will control the House, enjoy Jen's interview with C-SPAN Communications Director, Howard Mortman. Jen and Howard discuss all things C-SPAN, including what C-SPAN crews are and are not allowed to film and the network's funding sources and distribution, as well has Howard's podcast, the Weekly, and his book, When Rabbis Bless Congress. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Executive Producer Recommended Sources Background Sources Howard Mortman Jen on C-SPAN Alzheimer’s Testimony Seth Rogan's and Charity February 26, 2014. Senate Appropriations Subcommittee on Labor, Health, and Human Services. Origins of COVID-19 Katherine Eban and Jeff Kao. October 28, 2022. ProPublica. Cover Art Design by Only Child Imaginations Music Presented in This Episode by
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Oct 30, 2022 • 1h 45min

CD261: Inflation Reduction Act

The Inflation Reduction Act is a new law designed to hasten the United States’ energy transition (and do nothing about inflation). In the last episode before the midterm election, learn about the energy path the Democratic Party has plotted for us and learn how this new law can possibly save you tens of thousands of dollars. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank’s online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Jen Podcast Appearances The Living Numbers Podcast with Tony Rambles. A Word with Tom Merritt. Background Sources Recommended Congressional Dish Episodes Tax Credits and Refunds Home Energy Efficiency Tax Credits eFile. Rocky Mengle. Sept 16, 2022. Kiplinger. Updated Aug 18, 2022. Energy Star. Electric Appliance Rebates U.S. Census Bureau. Electric Car Tax Credit Cornell Law School Legal Information Institute. Alternative Fuels Data Center. U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy. Kelley R. Taylor. Oct 18, 2022. Kiplinger. Greg Iacurci. Oct 15, 2022. CNBC. John Bozzella. Aug 5, 2022. Alliance for Automotive Innovation. John Bogna. Jun 22, 2022. PCMag. U.S. Geological Survey. U.S. Department of the Interior. Princeton University Research & Project Administration. Alternative Fuel vehicle refueling property credit Kelley R. Taylor. Sept 14, 2022. Kiplinger. Cornell Law School Legal Information Institute. Hydrogen Catherine Clifford. Sep 8, 2022. CNBC. Emma Ochu et al. Jun 17, 2021. Columbia University School of International and Public Affairs, Center on Global Energy Policy. Open Secrets. Jay Bartlett and Alan Krupnick. December 2020. Resources for the Future. 24/7 Wall St. Feb 16, 2020. Market Watch. Health Care Oct 5, 2022. Centers for Medicare & Medicaid Services. 2022. Centers for Medicare & Medicaid Services. Carbon Capture Angela C. Jones and Ashley J. Lawson. Oct 5, 2022. Congressional Research Service. Emily Pontecorvo. Aug 22, 2022. Grist. 2021. Global CCS Institute. Nov 17, 2011. European Environment Agency. Offshore Wind Leases Abby Husselbee and Hannah Oakes. Aug 25, 2022. Harvard University Environmental & Energy Law Program. Sept 8, 2020. The White House. Fossil Fuels David Jordan. Oct 6, 2022. Roll Call. Aug 18, 2022. Enersection. Cornell Law School Legal Information Institute. The Associated Press. Apr 16, 2022. NPR. Taxes Kelley R. Taylor. Oct 10, 2022. Kiplinger. August 16, 2022. EY. Jacob Bogage. Aug 12, 2022. The Washington Post. Peter Warren. Aug 11, 2022. Empire Center. Open Secrets. November 13, 2017. Congressional Budget Office. The Law Revised August 5, 2022. Congressional Budget Office. Audio Sources September 22, 2022 Senate Committee on Energy and Natural Resources Witnesses: Tim Hemstreet, Managing Director for Renewable Energy Development, PacifiCorp Spencer Nelson, Managing Director, Research and New Initiatives, ClearPath Ted Wiley, President and Chief Operating Officer, Form Energy 19:19 Sen. Joe Manchin (D-WV): When it comes to storage, there has rightly been a focus on the supply chain, particularly for lithium ion batteries that power electric vehicles and phones in our pockets and many other modern technologies. While we have benefited from the use of this important battery chemistry, the fact that China is responsible for 75% of global lithium ion battery production, including 60% of the world's cathode production and 80% of the world's anode production, should give everyone pause. That is why I was proud to champion Inflation Reduction Act which incentivized the onshoring of the entire battery supply chain, from the production and processing of raw materials, to the battery pack assembly and everything in between. March 31, 2022 Senate Committee on Energy and Natural Resources Witnesses: Dr. Steve Fortier, Director, USGS National Minerals Information Center, U.S. Department of the Interior Scott Melbye, President, Uranium Producers of America Julie Padilla, Chief Regulatory Officer, Twin Metals Minnesota Abigail Wulf, Vice President, Critical Minerals Strategy and Director of the Center for Critical Minerals Strategy, Securing America's Future Energy Dr. Paul Ziemkiewicz, Director, West Virginia Water Research Institute, West Virginia University 24:14 Sen. Joe Manchin (D-WV): It makes no sense to remain beholden to bad actors when we have abundant resources in manufacturing know-how here in the United States. And make no mistake, we are beholden, particularly when it comes to many of the minerals that go into clean energy technologies. That is why I've sounded the alarm about going down the path of EVs alone and advocated for equal treatment for hydrogen 45:08 Abigail Wulf: As things stand, without some significant course corrections on America's critical minerals enterprise, the leading automobile power won't be the United States. It will be China. Not because of superior design or technology, but because of their massive head start and established market power, if not utter dominance, in all aspects of the supply chain that powers these [electric] vehicles. But simply mining alone does not begin to address the fundamentals of America's mineral supply chain challenge. Where we are most lacking and where China is most dominant is in that crucial but largely hidden processing phase and midstream component production. We simply can't dig up a rock and stick it in a Tesla. You have to crush it, smelt it, and refine it into precursor material that has been sold to somebody else to turn it into battery guts, namely cathodes, anodes and electrolytes. Today, the United States has less than 4% of all minerals processing capacity and makes 0% of the world's cathodes and anodes. By contrast, China is the world's largest processor of copper, nickel, cobalt, lithium and rare earth elements, and they control 60% of anode production and 40% of global cathode production. Consider that in 2019, about 70% of the world's cobalt supply was mined in the Democratic Republic of Congo, but more than 70% of that cobalt was refined in or controlled by China. February 2, 2022 Senate Committee on Energy and Natural Resources Witnesses Dr. Sunita Satyapal, Director, Hydrogen and Fuel Cell Technologies Office, Hydrogen Program Coordinator, U.S. Department of Energy Dr. Glen Richard Murrell, Executive Director, Wyoming Energy Authority Jonathan Lewis, Senior Counsel and Director of Transportation Decarbonization, Clean Air Task Force Michael J. Graff, Chairman & Chief Executive Officer, American Air Liquide Holdings, Inc. Brian Hlavinka, Vice President, New Energy Ventures, Corporate Strategic Development, Williams 21:07 Sen. Joe Manchin (D-WV): However, we have some challenges to tackle in order to build a clean hydrogen economy. Producing hydrogen without emissions is two to six times the cost of current production methods. Also, retrofitting end-use applications to use hydrogen as a feedstock, from chemical plants to cars and trucks, will take huge investments from both public and private sectors. This is the demand that we need to develop hydrogen markets that can sustain themselves. The other big challenge is the safe and efficient transport and storage of large volumes of hydrogen, given its physical properties. There's a lot of promising work being done in this space and will allow us to leverage our vast natural gas pipeline network to transport hydrogen to market. 22:00 Sen. Joe Manchin (D-WV): That is why I made research, development, and demonstration of these technologies a central part of the Energy Infrastructure Act, which this committee reported with bipartisan support last year, and which was subsequently included in the recently enacted Bipartisan Infrastructure Law. In that bill, we fund $9.5 billion in research, development and demonstration of clean hydrogen, and we tasked the Department of Energy to develop a national strategy and a roadmap to get us to a clean hydrogen economy. 27:25 Sen. James Lankford (R-OK): I'm concerned that the conversation around green versus blue hydrogen will pit technologies against each other rather than working together to establish a robust hydrogen marketplace. The simple truth right now is that 95% of hydrogen produced in the United States is made from natural gas. 1:42:00 Sen. Lisa Murkowski (R-AK): Can you share what the administration's policy is with regards to converting natural gas to hydrogen? We recognize that there are some within the [Biden] administration, certainly some groups that may have influence on the administration, who are very firm about not using fuel sources like natural gas. So the question is, is there a role for conversion to play? And what might we anticipate with regards to support and funding that might come with it? Dr. Sunita Satyapal: Thank you again for the question. And as mentioned, with hydrogen shot, we're really looking at all of the pathways. It's really about clean hydrogen. So whether it's natural gas, carbon feedstocks, nuclear renewables, you know, any pathway to get to the low carbon intensity, we're really pivoting away from the colors. There's a lot of complexity: green, blue, purple, turquoise….Pyrolysis is another approach. In fact, our loan program office just announced financing of $1 billion solid carbon, which is another value added product, no need for the CCS portion. So definitely an all-of-the-above strategy needed to meet all of our goals. July 28, 2020 Senate Committee on Energy and Natural Resources Witnesses: Steven Winberg, (Former) Assistant Secretary for Fossil Energy at the US Department of Energy Shannon Angielski, Executive Director of the Carbon Utilization Research Council Dr. Julio Friedmann, Center on Global Energy Policy, Columbia University 25:06 Dr. Julio Friedmann: Net zero means that any residual emissions must be balanced by removal, as Secretary Moniz said. It means that reduction of co2 emissions and removal of co2 emissions are complementary but distinct actions and that both are necessary. The National Academies and the IPCC find that this must be done at enormous scale exceeding the size of the global oil and gas industry today. We are not where we need to be to make this real. 48:35 Shannon Angielski: In addition, the International Energy Agency modelled the contributions of different technologies to meet that mid-century 2 degree scenario. And it shows that CCUS accounts for approximately 100 Giga tons of needed global co2 emissions reductions by 2060. To put this into perspective, this would be achieved by the operation of 1100 carbon capture systems on the equivalent of 500 megawatt coal fired units, or 3200 natural gas combined cycle units, which would need to be operating for the next 30 years. 1:59:00 Steven Winberg: The rest of the world is going to continue using fossil energy, whether it's coal or oil or natural gas. And that's why we have moved forward quickly on the coal first program, because it offers the opportunity for what I think of as 21st century coal. Right now the Chinese own the space in power generation — coal fired power generation. We have an opportunity to take technology and springboard over what the Chinese are building, which is basically 1970s vintage technology that we built, and they now have improved slightly, but they're selling it around the world, to countries that have coal under their feet, and they're going to continue using that coal. But with the coal first program, we can move into power generation, and we can move into hydrogen production, because these countries also, as they build out their transport sector, may not do it the same way that developed countries, they may move more swiftly into hydrogen. And so there's an opportunity there to take our technology using their natural resources that are under their feet, and produce zero emitting power generation and zero emitting hydrogen and perhaps even net negative hydrogen and net negative electricity and they can use that hydrogen in the transportation sector as well as the industrial sector. Cover Art Design by Only Child Imaginations Music Presented in This Episode by

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