WEBVTT - NYC Mayor's Aggressive Defense & Dockworker Strike

0:00:03.200 --> 0:00:08.000
<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

0:00:09.480 --> 0:00:12.680
<v Speaker 2>New York City Mayor Eric Adams appeared in a Manhattan

0:00:12.680 --> 0:00:16.320
<v Speaker 2>courtroom today for the second time in a week. Adams

0:00:16.360 --> 0:00:20.000
<v Speaker 2>was indicted last week on federal corruption charges in a

0:00:20.079 --> 0:00:24.200
<v Speaker 2>widespread criminal investigation in which top city hall aides have

0:00:24.280 --> 0:00:28.400
<v Speaker 2>had their home searched and phone seized by investigators. Adams

0:00:28.400 --> 0:00:32.479
<v Speaker 2>pleaded not guilty and his resisting calls to resign. Meanwhile,

0:00:32.479 --> 0:00:36.240
<v Speaker 2>his lawyer, Alex Spiro, has rolled out an aggressive defense,

0:00:36.600 --> 0:00:40.240
<v Speaker 2>asking the judge to dismiss part of the case right away,

0:00:40.280 --> 0:00:45.160
<v Speaker 2>accusing federal prosecutors of leaking grand jury information, and holding

0:00:45.200 --> 0:00:49.000
<v Speaker 2>a press conference to attack the indictment. Spiro said the

0:00:49.040 --> 0:00:53.320
<v Speaker 2>mayor's flights, upgrades, meals, and hotel rooms do not count

0:00:53.320 --> 0:00:55.160
<v Speaker 2>as bribes under federal law.

0:00:55.760 --> 0:01:00.760
<v Speaker 1>Congressmen get upgrades, they get corner suites at better tables

0:01:00.760 --> 0:01:03.440
<v Speaker 1>at restaurants, they get free appetizers, they have their iced

0:01:03.440 --> 0:01:06.520
<v Speaker 1>t filled up. That's just what happens. That's the truth.

0:01:07.280 --> 0:01:11.640
<v Speaker 1>And we don't in the law leave these public servants

0:01:11.680 --> 0:01:14.479
<v Speaker 1>to be asking themselves every single time, every single day

0:01:14.480 --> 0:01:17.240
<v Speaker 1>they have been any interaction with the public is accepting

0:01:17.280 --> 0:01:20.440
<v Speaker 1>this or taking that appetizer or not waiting in line

0:01:20.520 --> 0:01:21.880
<v Speaker 1>a violation of federal law.

0:01:22.200 --> 0:01:26.560
<v Speaker 2>At the hearing today, federal prosecutors divulged that they're pursuing

0:01:26.720 --> 0:01:31.920
<v Speaker 2>several related investigations that could lead to additional corruption charges

0:01:32.000 --> 0:01:35.880
<v Speaker 2>against Atoms and quite likely will lead to indictments for

0:01:35.959 --> 0:01:39.160
<v Speaker 2>people in his orbit. Joining me is former federal prosecutor

0:01:39.200 --> 0:01:43.400
<v Speaker 2>Jennifer Rogers, a lecturer in law at Columbia Law School.

0:01:43.959 --> 0:01:47.400
<v Speaker 2>The defense is being very aggressive. They made a motion

0:01:47.560 --> 0:01:50.800
<v Speaker 2>to dismiss part of the case within days of the indictment.

0:01:51.120 --> 0:01:55.080
<v Speaker 2>The defense attorney held a press conference. Is this for

0:01:55.320 --> 0:01:59.240
<v Speaker 2>political purposes, a political strategy or is there a legal

0:01:59.280 --> 0:02:00.360
<v Speaker 2>strategy here?

0:02:00.880 --> 0:02:03.240
<v Speaker 3>Well, I think they're trying to do all of it, right.

0:02:03.280 --> 0:02:06.000
<v Speaker 3>I mean, he's a sitting official, so clearly they want

0:02:06.080 --> 0:02:08.960
<v Speaker 3>to work on the political side. But you know, this

0:02:09.040 --> 0:02:11.800
<v Speaker 3>is a legal case. There are legal motions to be made,

0:02:12.000 --> 0:02:15.799
<v Speaker 3>and you know, even the notion of him aggressively saying

0:02:15.880 --> 0:02:19.799
<v Speaker 3>he's going to stay in office has legal implications because

0:02:20.200 --> 0:02:23.960
<v Speaker 3>resigning could be part of a plea agreement, maybe getting

0:02:24.040 --> 0:02:26.360
<v Speaker 3>him a more favorable deal if he wanted to do that.

0:02:26.560 --> 0:02:29.240
<v Speaker 3>So I think it's all part and parcel of an

0:02:29.320 --> 0:02:34.720
<v Speaker 3>aggressive overall defense strategy. But they really are being aggressive.

0:02:34.760 --> 0:02:38.119
<v Speaker 3>I mean you rarely see the motions about the grand

0:02:38.200 --> 0:02:42.000
<v Speaker 3>jury lease alleging that prosecutors or agents somehow the government

0:02:42.440 --> 0:02:45.440
<v Speaker 3>leaked information out of the grand jury. So I mean

0:02:45.480 --> 0:02:48.880
<v Speaker 3>they're firing on all cylinders right now. It's going to

0:02:48.960 --> 0:02:50.720
<v Speaker 3>keep the Southern District busy for sure.

0:02:51.200 --> 0:02:55.040
<v Speaker 2>I mean that was a point blank accusation that the

0:02:55.080 --> 0:02:59.920
<v Speaker 2>Southern District had been leaking information about Adam's alleged care

0:03:00.720 --> 0:03:01.800
<v Speaker 2>for nearly a year.

0:03:02.560 --> 0:03:06.160
<v Speaker 3>Yeah, I mean, I don't know what they're basing that on,

0:03:06.520 --> 0:03:08.680
<v Speaker 3>and I think, you know, they better have receipts if

0:03:08.680 --> 0:03:11.880
<v Speaker 3>they're going to allege something like that. So we'll see

0:03:11.919 --> 0:03:15.680
<v Speaker 3>what they say. That would be unprecedented for the Southern

0:03:15.680 --> 0:03:19.040
<v Speaker 3>District to be found guilty of something like that, So

0:03:19.639 --> 0:03:22.079
<v Speaker 3>you know, my inclination is to say that that it's

0:03:22.120 --> 0:03:24.280
<v Speaker 3>not true and that they won't find any basis to

0:03:24.360 --> 0:03:27.639
<v Speaker 3>believe that that happened. But you know, obviously you never know.

0:03:27.800 --> 0:03:30.040
<v Speaker 3>I mean, there could be a bad seat somewhere, but

0:03:30.280 --> 0:03:34.160
<v Speaker 3>that is so opposite of the ethos of that office

0:03:34.280 --> 0:03:36.520
<v Speaker 3>that you know, it would shock me if that ended

0:03:36.600 --> 0:03:38.600
<v Speaker 3>up being true, So you know, we'll see how it

0:03:38.680 --> 0:03:39.160
<v Speaker 3>plays out.

0:03:39.360 --> 0:03:42.360
<v Speaker 2>Well, so far, they've just pointed to all the different

0:03:42.520 --> 0:03:45.840
<v Speaker 2>news reports that came out over the last year. They

0:03:45.840 --> 0:03:49.200
<v Speaker 2>haven't pointed to any evidence they want the judge to

0:03:49.200 --> 0:03:52.320
<v Speaker 2>do an investigation about that. Do you think that's something

0:03:52.360 --> 0:03:54.720
<v Speaker 2>that a federal judge would engage in.

0:03:55.320 --> 0:03:57.360
<v Speaker 3>That seems very unlikely to me. I mean, if all

0:03:57.360 --> 0:03:59.720
<v Speaker 3>they have is that things from the grand jury have

0:03:59.800 --> 0:04:02.800
<v Speaker 3>made their way into the public realm. I mean, witnesses

0:04:02.840 --> 0:04:05.200
<v Speaker 3>are allowed to talk about what happens in the grand jury.

0:04:05.200 --> 0:04:10.080
<v Speaker 3>It's only prosecutors that are forbidden to share information like that.

0:04:10.440 --> 0:04:13.800
<v Speaker 3>So if a witness goes in and testifies, then or

0:04:13.800 --> 0:04:16.159
<v Speaker 3>she's allowed to speak about that public ways they wish.

0:04:16.200 --> 0:04:18.640
<v Speaker 3>And so that is the most common way, the most

0:04:18.720 --> 0:04:21.400
<v Speaker 3>usual way that information like that would get out into

0:04:21.480 --> 0:04:23.719
<v Speaker 3>the public realm. And in a case like this, where

0:04:24.000 --> 0:04:26.400
<v Speaker 3>everyone would be interested in it. He's obviously a public

0:04:26.440 --> 0:04:29.719
<v Speaker 3>figure of public official. I wouldn't be surprised if some

0:04:29.839 --> 0:04:33.440
<v Speaker 3>witnesses wanted to talk about what they had said in

0:04:33.440 --> 0:04:36.359
<v Speaker 3>the grand jury. So, you know, I suspect the judge

0:04:36.440 --> 0:04:40.400
<v Speaker 3>will not launch an investigation unless they have more than

0:04:40.720 --> 0:04:43.680
<v Speaker 3>just the grand jury happen, and some information from that

0:04:43.800 --> 0:04:45.839
<v Speaker 3>process made its way into the public realm.

0:04:46.160 --> 0:04:49.120
<v Speaker 2>When a defense attorney does something like that, you know,

0:04:49.279 --> 0:04:53.240
<v Speaker 2>accuses the federal prosecutors of wrongdoing, does that set up

0:04:53.240 --> 0:04:57.279
<v Speaker 2>an even more adversarial relationship with the prosecutors?

0:04:58.000 --> 0:05:01.120
<v Speaker 3>I mean it can it can? You know, listen, people

0:05:01.160 --> 0:05:03.279
<v Speaker 3>are only human, and if you have someone on the

0:05:03.279 --> 0:05:06.400
<v Speaker 3>other side who's accusing you of bad things and being

0:05:06.520 --> 0:05:09.720
<v Speaker 3>unpleasant or whatever the case may be, it could impact

0:05:09.760 --> 0:05:12.560
<v Speaker 3>your interactions with that lawyer. But at the end of

0:05:12.640 --> 0:05:16.400
<v Speaker 3>the day, prosecutors want to resolve this case, they'd prefer

0:05:16.440 --> 0:05:18.320
<v Speaker 3>to do it by plea if they can, because that's

0:05:18.320 --> 0:05:21.200
<v Speaker 3>more efficient. So they're going to work with whoever is there.

0:05:21.360 --> 0:05:25.719
<v Speaker 3>And you really can't punish the defendant for his counsel

0:05:25.880 --> 0:05:29.480
<v Speaker 3>being a jerk or you know, making accusations, So ultimately

0:05:29.560 --> 0:05:33.159
<v Speaker 3>they're professionals. They'll work with mister Spiro and his team

0:05:33.320 --> 0:05:35.800
<v Speaker 3>no matter what he says. But they may not like

0:05:35.880 --> 0:05:38.440
<v Speaker 3>it as much as they would if someone was, you know,

0:05:38.800 --> 0:05:41.279
<v Speaker 3>a little less accusatory and more pleasant.

0:05:41.880 --> 0:05:46.360
<v Speaker 2>They're making a motion to dismiss the bribery charge, and

0:05:46.600 --> 0:05:49.240
<v Speaker 2>the defense attorney said that doesn't amount to a federal

0:05:49.320 --> 0:05:54.159
<v Speaker 2>crime at all. First, they're saying there's no quid pro quo,

0:05:54.440 --> 0:05:56.400
<v Speaker 2>and he mentioned at the press conference that there was

0:05:56.400 --> 0:06:01.720
<v Speaker 2>no contemporary exchange of this for them, and that Adams

0:06:01.839 --> 0:06:06.360
<v Speaker 2>allegedly received these benefits over years and it wasn't connected

0:06:06.839 --> 0:06:11.600
<v Speaker 2>sufficiently to helping Turkey open its consulate. I mean, does

0:06:11.640 --> 0:06:14.640
<v Speaker 2>there have to be a contemporaneous quid pro quo?

0:06:15.440 --> 0:06:19.520
<v Speaker 3>So you have to have an agreement to do something

0:06:19.920 --> 0:06:24.120
<v Speaker 3>before you give over whatever the benefit is. The Supreme

0:06:24.160 --> 0:06:26.560
<v Speaker 3>Court ruled in the last term that it can't be

0:06:26.640 --> 0:06:29.599
<v Speaker 3>a gratuity, which would mean kind of a tip after

0:06:29.680 --> 0:06:32.520
<v Speaker 3>the fact. It has to be an agreement before. But

0:06:32.839 --> 0:06:36.000
<v Speaker 3>I think the defense is being a little too aggressive

0:06:36.040 --> 0:06:39.039
<v Speaker 3>with what they're saying. It has to be right. They're

0:06:39.240 --> 0:06:42.560
<v Speaker 3>providing a more strict reading of the statute than is

0:06:42.600 --> 0:06:46.400
<v Speaker 3>in the statutory language and then has been blessed by

0:06:46.440 --> 0:06:49.480
<v Speaker 3>the Supreme Court. What has happened in the last fifteen

0:06:49.600 --> 0:06:53.159
<v Speaker 3>years or so is all of these public corruption statutes

0:06:53.200 --> 0:06:55.640
<v Speaker 3>have gone up for interpretation of the Supreme Court and

0:06:55.680 --> 0:06:59.680
<v Speaker 3>have been narrowed and made more strict, except this one,

0:06:59.720 --> 0:07:03.240
<v Speaker 3>which is Section sixty sixty six Federal Program bribery. This

0:07:03.400 --> 0:07:06.080
<v Speaker 3>is the one that hasn't really been considered by the

0:07:06.160 --> 0:07:09.680
<v Speaker 3>court yet on this point, So you know, listen, they're

0:07:09.760 --> 0:07:14.320
<v Speaker 3>kind of pitching an interpretation of this statute that it's

0:07:14.440 --> 0:07:18.040
<v Speaker 3>theoretically possible the Supreme Court could agree with if this

0:07:18.120 --> 0:07:20.080
<v Speaker 3>case or another case like it gets up to the

0:07:20.120 --> 0:07:23.840
<v Speaker 3>Supreme Court. But where the law sits now, I think

0:07:23.880 --> 0:07:26.920
<v Speaker 3>they're being overly strict with what they're saying. So I

0:07:26.960 --> 0:07:29.240
<v Speaker 3>think what's going to happen is that the judge is

0:07:29.320 --> 0:07:33.720
<v Speaker 3>going to reject this motion right now and say it's

0:07:33.720 --> 0:07:35.640
<v Speaker 3>a question of fact, and the jury will have to

0:07:35.680 --> 0:07:38.160
<v Speaker 3>decide whether or not they've met the quick pro quo

0:07:38.480 --> 0:07:42.400
<v Speaker 3>requirement in this case per the statutory language. And then

0:07:42.640 --> 0:07:46.600
<v Speaker 3>if Adams is convicted, as he appeals up the chain afterwards,

0:07:46.920 --> 0:07:50.040
<v Speaker 3>then we'll see whether the Second Circuit and ultimately the

0:07:50.080 --> 0:07:53.960
<v Speaker 3>Supreme Court are you know, more in his mindset as

0:07:54.000 --> 0:07:55.920
<v Speaker 3>far as what the statutes should be. But I think

0:07:55.960 --> 0:07:59.400
<v Speaker 3>for now they're on safe ground with the charge as

0:07:59.400 --> 0:07:59.680
<v Speaker 3>it is.

0:08:00.160 --> 0:08:04.400
<v Speaker 2>Also, what Mayor Adams has said and what his defense

0:08:04.440 --> 0:08:08.360
<v Speaker 2>attorney has said, is that courtesies to politicians are in

0:08:08.480 --> 0:08:12.720
<v Speaker 2>federal crimes. His attorney, Spiro said, Congressmen get upgrades, they

0:08:12.720 --> 0:08:15.720
<v Speaker 2>get corner suites, they get better tables and restaurants, they

0:08:15.760 --> 0:08:18.560
<v Speaker 2>get free appetizers. They had their iced tea filled up,

0:08:19.040 --> 0:08:23.600
<v Speaker 2>and Adams said, if everyone who did this was indicted,

0:08:23.880 --> 0:08:28.080
<v Speaker 2>you know, you'd be stopping politicians from helping their constituents.

0:08:28.840 --> 0:08:32.920
<v Speaker 3>Yeah, okay, but you can't do it in exchange. You know,

0:08:32.960 --> 0:08:36.439
<v Speaker 3>you can't offer benefits in exchange for those things of

0:08:36.559 --> 0:08:39.800
<v Speaker 3>value that you're taking. There are also rules that apply

0:08:39.880 --> 0:08:43.560
<v Speaker 3>to Adams that require him to file disclosure forms about

0:08:43.840 --> 0:08:46.680
<v Speaker 3>benefits that he's getting over a certain amount of money,

0:08:46.720 --> 0:08:50.120
<v Speaker 3>and he didn't file those forms properly with respect to

0:08:50.160 --> 0:08:52.800
<v Speaker 3>all these benefits that are listed in the indictment. So

0:08:53.320 --> 0:08:57.360
<v Speaker 3>you know, there's a non disclosure part of this that

0:08:57.840 --> 0:09:00.880
<v Speaker 3>makes it look more suspicious that he understood that these

0:09:00.880 --> 0:09:03.520
<v Speaker 3>were things that he should not be taking. And again,

0:09:03.559 --> 0:09:06.000
<v Speaker 3>it's all about the exchange. Like, could he take an

0:09:06.040 --> 0:09:08.920
<v Speaker 3>upgrade if randomly he went to check in for his

0:09:09.000 --> 0:09:12.079
<v Speaker 3>flight and someone said, hey, you're a great mayor, we'd

0:09:12.160 --> 0:09:14.679
<v Speaker 3>like to upgrade you to business class. If there wasn't

0:09:14.720 --> 0:09:18.320
<v Speaker 3>anything about and I expect something from you in return,

0:09:18.520 --> 0:09:21.640
<v Speaker 3>then sure that wouldn't be bribery, but that's not what's

0:09:21.679 --> 0:09:24.800
<v Speaker 3>being alleged here. So you know, part of their job

0:09:24.920 --> 0:09:27.120
<v Speaker 3>is to try to kind of pooh pooh the allegations

0:09:27.160 --> 0:09:29.439
<v Speaker 3>and make it seem like no big deal. So that's

0:09:29.520 --> 0:09:33.400
<v Speaker 3>what they're doing here, and I understand that. But when

0:09:33.400 --> 0:09:36.000
<v Speaker 3>they say things kind of generically like oh, it's like

0:09:36.080 --> 0:09:38.920
<v Speaker 3>filling up your ica, it's not like filling up your iced.

0:09:39.440 --> 0:09:41.760
<v Speaker 2>Coming up next on the Bloomberg Law Show, I'll continue

0:09:41.800 --> 0:09:46.760
<v Speaker 2>this conversation with former federal prosecutor Jennifer Rogers. The defense

0:09:46.840 --> 0:09:50.200
<v Speaker 2>wants to finish the trial by March. Is that doable?

0:09:50.679 --> 0:09:55.240
<v Speaker 2>I'm June Grosso and you're listening to Bloomberg. New York

0:09:55.280 --> 0:09:58.360
<v Speaker 2>City Mayor Eric Adams has launched a legal attack on

0:09:58.400 --> 0:10:01.760
<v Speaker 2>the federal corruption case again against him, with his attorney

0:10:01.840 --> 0:10:05.400
<v Speaker 2>asking a judge to toss out bribery charges, and Alex

0:10:05.440 --> 0:10:09.640
<v Speaker 2>Spiro said the other charges against Adams that he solicited

0:10:09.640 --> 0:10:15.080
<v Speaker 2>and accepted foreign donations and manipulated the city's matching funds program,

0:10:15.480 --> 0:10:18.600
<v Speaker 2>would soon be revealed as equally meritless.

0:10:19.240 --> 0:10:22.840
<v Speaker 1>But Eric Adams obviously had no idea if that occurred,

0:10:23.000 --> 0:10:26.400
<v Speaker 1>whether that occurred, and so the remaining allegations in this

0:10:26.440 --> 0:10:31.319
<v Speaker 1>case rely on the testimony of one staffer. Just think

0:10:31.360 --> 0:10:35.640
<v Speaker 1>about that one staffer who has already lied.

0:10:36.320 --> 0:10:41.160
<v Speaker 2>I've been talking to former federal prosecutor Jennifer Rogers, so

0:10:41.559 --> 0:10:46.080
<v Speaker 2>the donations from foreign sources through straw donors seemed to

0:10:46.120 --> 0:10:51.160
<v Speaker 2>be a different story. And there his defense attorney is

0:10:51.240 --> 0:10:54.839
<v Speaker 2>indicating that the charges were based on the testimony of

0:10:55.000 --> 0:10:57.640
<v Speaker 2>one Adam staffer who lied.

0:10:58.000 --> 0:11:00.480
<v Speaker 3>Well, so this is interesting. I mean, and they want

0:11:00.520 --> 0:11:02.679
<v Speaker 3>to say something about every part of the case, right,

0:11:02.720 --> 0:11:05.240
<v Speaker 3>They don't want to concede anything at this point. What

0:11:05.280 --> 0:11:07.800
<v Speaker 3>they're saying about this part of the case is what

0:11:07.840 --> 0:11:11.000
<v Speaker 3>you would expect when there's a cooperating witness. Okay, there's

0:11:11.040 --> 0:11:13.959
<v Speaker 3>evidence against our guy. Okay, this looks really bad that

0:11:13.960 --> 0:11:17.160
<v Speaker 3>that person is a liar. That's the oldest argument in

0:11:17.200 --> 0:11:20.000
<v Speaker 3>the book, right, and that is clearly a question of facts.

0:11:20.120 --> 0:11:23.120
<v Speaker 3>Is going to be for the jury at trial. There's

0:11:23.200 --> 0:11:25.479
<v Speaker 3>no way that piece of the case is getting dismissed

0:11:25.600 --> 0:11:29.000
<v Speaker 3>at this point or any point before trial and the jury.

0:11:29.000 --> 0:11:31.480
<v Speaker 3>We'll have to sort it out when this person testifies.

0:11:31.520 --> 0:11:34.040
<v Speaker 3>Do we believe her? Is she credible? Is there other

0:11:34.160 --> 0:11:37.120
<v Speaker 3>evidence in the case that corroborates her, and prosecutors, as

0:11:37.160 --> 0:11:39.559
<v Speaker 3>you know, will be working hard. They already have been,

0:11:39.559 --> 0:11:42.080
<v Speaker 3>I'm sure, but will continue to work hard to find

0:11:42.120 --> 0:11:45.200
<v Speaker 3>corroborating evidence that they will present to the jury so

0:11:45.240 --> 0:11:47.240
<v Speaker 3>that they can say it's not just her, it's all

0:11:47.280 --> 0:11:50.360
<v Speaker 3>this other information. It's text messages, it's you know, other

0:11:50.400 --> 0:11:54.000
<v Speaker 3>people testifying similarly, and so on. The one thing about

0:11:54.040 --> 0:11:57.040
<v Speaker 3>this piece of the case, which generally I think is

0:11:57.200 --> 0:12:01.880
<v Speaker 3>quite strong given what's listed in the is that it's

0:12:01.960 --> 0:12:05.000
<v Speaker 3>not all that much money, at least as they've laid

0:12:05.040 --> 0:12:08.680
<v Speaker 3>it out so far. I mean, they talk about ten

0:12:08.760 --> 0:12:13.120
<v Speaker 3>million dollars in matching funds that the campaign received, but

0:12:13.200 --> 0:12:15.880
<v Speaker 3>that's the overall amount of matching funds, not the amount

0:12:15.920 --> 0:12:19.360
<v Speaker 3>of funds that were foreign donors or the use of

0:12:19.400 --> 0:12:24.079
<v Speaker 3>straw donors. So that amount seems to be much much smaller,

0:12:24.480 --> 0:12:26.840
<v Speaker 3>and so it'll be interesting to see as this case developed,

0:12:26.880 --> 0:12:29.480
<v Speaker 3>if they will come up with more, you know, if

0:12:29.480 --> 0:12:32.520
<v Speaker 3>they're currently scrubbing all of his donations to try to

0:12:32.520 --> 0:12:35.160
<v Speaker 3>see if there were other straw donors or other foreign donors,

0:12:35.320 --> 0:12:38.000
<v Speaker 3>because I think they will want to get that to

0:12:38.040 --> 0:12:40.200
<v Speaker 3>be as big a number as possible. Otherwise you risk

0:12:40.280 --> 0:12:43.800
<v Speaker 3>the jury saying really, only you know, fourteen thousand dollars

0:12:43.880 --> 0:12:46.280
<v Speaker 3>or whatever it is, that's not a lot of money

0:12:46.320 --> 0:12:47.600
<v Speaker 3>to be taken from the city.

0:12:47.880 --> 0:12:50.400
<v Speaker 2>Is this count the straw donors count? Is that a

0:12:50.400 --> 0:12:56.000
<v Speaker 2>more straightforward count legally than the bribery, whereas it's more factual.

0:12:56.520 --> 0:12:59.240
<v Speaker 3>Yeah, that they're both factual, But this one is cleaner.

0:12:59.360 --> 0:13:03.200
<v Speaker 3>I mean, if the people who gave the money were foreign,

0:13:03.400 --> 0:13:06.360
<v Speaker 3>you can prove the straw donor scheme, and you prove

0:13:06.440 --> 0:13:09.360
<v Speaker 3>that Adams knew about it and had his people do

0:13:09.480 --> 0:13:12.959
<v Speaker 3>it purposefully, then that's it. You don't have to worry about,

0:13:13.200 --> 0:13:16.240
<v Speaker 3>you know, the timing of the exchange and was this

0:13:16.360 --> 0:13:19.080
<v Speaker 3>for that? And it is a little cleaner, I think,

0:13:19.280 --> 0:13:22.640
<v Speaker 3>which is why I say it's stronger. And the only

0:13:22.760 --> 0:13:25.400
<v Speaker 3>concern that I have about that piece of it is

0:13:25.400 --> 0:13:27.520
<v Speaker 3>that I just don't think the amounts seemed to be

0:13:27.679 --> 0:13:30.880
<v Speaker 3>very high. Now, the foreign element of it, the fact

0:13:30.920 --> 0:13:34.240
<v Speaker 3>that there were foreign donors, the amount doesn't really matter.

0:13:34.320 --> 0:13:36.640
<v Speaker 3>I mean, you're not allowed to accept money in your

0:13:36.679 --> 0:13:39.839
<v Speaker 3>campaign from foreign people or or even non New York

0:13:39.880 --> 0:13:42.400
<v Speaker 3>City residents. I mean it's not just out of the US,

0:13:42.480 --> 0:13:44.280
<v Speaker 3>it's you know, these people have to be New York

0:13:44.320 --> 0:13:47.160
<v Speaker 3>City residents in order to get the matching funds, so

0:13:47.360 --> 0:13:50.040
<v Speaker 3>that doesn't really have an amount tied to it per se,

0:13:50.520 --> 0:13:53.200
<v Speaker 3>But for the New York City residents for whom matching

0:13:53.200 --> 0:13:56.200
<v Speaker 3>funds were given at an eight to one ratio, So

0:13:56.320 --> 0:13:58.959
<v Speaker 3>if you give up to two hundred and fifty dollars,

0:13:59.040 --> 0:14:01.040
<v Speaker 3>it's matched eight to one and you get two thousand

0:14:01.120 --> 0:14:04.240
<v Speaker 3>dollars from the city. That's where I think they don't

0:14:04.280 --> 0:14:07.360
<v Speaker 3>have a high number of straw donors that they can

0:14:07.440 --> 0:14:11.480
<v Speaker 3>say definitively, at least in the indictment. Now were straw

0:14:11.559 --> 0:14:14.520
<v Speaker 3>donors from these foreign donations. So I'm looking to see

0:14:14.520 --> 0:14:16.880
<v Speaker 3>if they actually come up with a bigger number as

0:14:16.880 --> 0:14:18.360
<v Speaker 3>they continue to investigate.

0:14:18.640 --> 0:14:20.640
<v Speaker 2>And Jennifer, what do you make of the fact that

0:14:21.360 --> 0:14:26.600
<v Speaker 2>they say that Adams tried to hamper their investigation? For example,

0:14:26.960 --> 0:14:29.600
<v Speaker 2>he gave over a cell phone but claimed that he

0:14:29.680 --> 0:14:33.200
<v Speaker 2>didn't remember what the code was to open it. Is

0:14:33.200 --> 0:14:35.320
<v Speaker 2>that just something for the jury or might they bring

0:14:35.360 --> 0:14:36.440
<v Speaker 2>obstruction charges?

0:14:36.760 --> 0:14:40.360
<v Speaker 3>Yeah, we'll see. I mean, it's currently more atmospheric than anything,

0:14:40.520 --> 0:14:43.680
<v Speaker 3>but if they get enough, they could bring an obstruction charge.

0:14:43.680 --> 0:14:46.640
<v Speaker 3>They wouldn't bring an obstruction charge based on the fact

0:14:46.720 --> 0:14:49.200
<v Speaker 3>that he says he couldn't remember his past code, because

0:14:49.240 --> 0:14:51.240
<v Speaker 3>how were they really going to prove that that he

0:14:51.280 --> 0:14:53.280
<v Speaker 3>can't remember it. I mean, we can all roll our

0:14:53.280 --> 0:14:56.040
<v Speaker 3>eyes and say that's ridiculous, but that's a different matter

0:14:56.080 --> 0:15:00.000
<v Speaker 3>from proving beyond a reasonable doubt that he purposely obstruct

0:15:00.000 --> 0:15:03.400
<v Speaker 3>an investigation. So I'm sure they're continuing to look. And

0:15:03.520 --> 0:15:05.480
<v Speaker 3>you know, one of the things that always happens after

0:15:05.520 --> 0:15:09.160
<v Speaker 3>you bring an indictment is that people come forward, right

0:15:09.280 --> 0:15:13.520
<v Speaker 3>So people who were previously maybe afraid to talk will

0:15:13.520 --> 0:15:16.720
<v Speaker 3>come forward. People who think that they're now in danger

0:15:16.760 --> 0:15:19.520
<v Speaker 3>of being caught up in the case themselves may actually

0:15:19.560 --> 0:15:22.480
<v Speaker 3>start to cooperate. So as you get more witnesses in

0:15:22.920 --> 0:15:25.320
<v Speaker 3>and you learn more, you may find out things. You

0:15:25.360 --> 0:15:27.960
<v Speaker 3>may find out that when this investigation broke and they

0:15:27.960 --> 0:15:30.920
<v Speaker 3>started talking to people that Eric Adams are, people close

0:15:30.960 --> 0:15:34.440
<v Speaker 3>to him were contacting potential witnesses and telling them, you know,

0:15:34.560 --> 0:15:37.280
<v Speaker 3>not to cooperate, to wipe their phones, et cetera, et cetera.

0:15:37.520 --> 0:15:41.400
<v Speaker 3>There's already some evidence in the indictment about you should

0:15:41.400 --> 0:15:44.000
<v Speaker 3>erase all your text messages with me, et cetera. So

0:15:44.440 --> 0:15:46.960
<v Speaker 3>as those sorts of things are percolating, and more and

0:15:46.960 --> 0:15:49.680
<v Speaker 3>more people are coming forward with information. They'll see whether

0:15:49.720 --> 0:15:52.400
<v Speaker 3>they could actually bring an obstruction charge. I'm sure they're

0:15:52.400 --> 0:15:53.560
<v Speaker 3>looking to do that if they can.

0:15:54.120 --> 0:15:58.480
<v Speaker 2>Well. At the hearing today, the federal prosecutors said they're

0:15:58.480 --> 0:16:02.440
<v Speaker 2>pursuing several related to investigations which we've heard of that

0:16:02.520 --> 0:16:06.080
<v Speaker 2>could lead to additional corruption charges against Atoms and quite

0:16:06.400 --> 0:16:11.240
<v Speaker 2>likely indictments for people in his orbit. So it is

0:16:11.320 --> 0:16:12.320
<v Speaker 2>going to expand.

0:16:12.960 --> 0:16:15.240
<v Speaker 3>Yeah, and that's the way that they work, That's how

0:16:15.280 --> 0:16:17.440
<v Speaker 3>I would expect them to do things. I mean, we

0:16:17.520 --> 0:16:21.480
<v Speaker 3>know already that there have been investigations into other people

0:16:21.600 --> 0:16:26.280
<v Speaker 3>members of his administration, and those may be unrelated to Adams,

0:16:26.440 --> 0:16:29.200
<v Speaker 3>so you know that may not result in any more

0:16:29.280 --> 0:16:31.720
<v Speaker 3>charges for him. But I also think, as I said,

0:16:31.720 --> 0:16:35.320
<v Speaker 3>they will try to expand this particular investigation. The indictment

0:16:35.480 --> 0:16:38.160
<v Speaker 3>suggests that there were numerous other people who were involved

0:16:38.160 --> 0:16:41.040
<v Speaker 3>in this game, right, who were helping him, not just

0:16:41.200 --> 0:16:43.440
<v Speaker 3>the one aid of his who seems to have been

0:16:43.520 --> 0:16:47.400
<v Speaker 3>kind of a translator and conduit to the Turkish folks,

0:16:47.400 --> 0:16:50.200
<v Speaker 3>but other people as well who were involved. So I

0:16:50.240 --> 0:16:53.880
<v Speaker 3>would think that there will be more people charged or

0:16:54.000 --> 0:16:56.800
<v Speaker 3>if not charged along with atoms that they would please

0:16:56.840 --> 0:16:59.080
<v Speaker 3>separately and become cooperating witnesses.

0:16:59.280 --> 0:17:03.560
<v Speaker 2>Do you think from the indictment that they already have cooperators?

0:17:04.080 --> 0:17:06.760
<v Speaker 3>Yes, yes, it looks like they do. It looks like

0:17:06.800 --> 0:17:11.800
<v Speaker 3>the woman who was this conduit liaison person is likely cooperating,

0:17:12.240 --> 0:17:14.320
<v Speaker 3>and probably others as well.

0:17:14.880 --> 0:17:18.359
<v Speaker 2>So would you say it's very unlikely that any of

0:17:18.400 --> 0:17:21.080
<v Speaker 2>the charges would be dismissed at this stage?

0:17:21.480 --> 0:17:23.560
<v Speaker 3>I think so. I don't think anything's going to be

0:17:23.600 --> 0:17:27.080
<v Speaker 3>dismissed now, because now you can only dismiss things. It

0:17:27.119 --> 0:17:29.119
<v Speaker 3>has to be dismissed on the law right. If there

0:17:29.160 --> 0:17:32.520
<v Speaker 3>any questions of fact anything for the jury, then you

0:17:32.560 --> 0:17:35.439
<v Speaker 3>don't get it dismissed. So this is just this charge

0:17:35.480 --> 0:17:38.800
<v Speaker 3>is legally unsupportable. You cannot support this charge with the

0:17:38.880 --> 0:17:41.680
<v Speaker 3>law as it stands now. And you know he can

0:17:41.720 --> 0:17:45.439
<v Speaker 3>make arguments all he wants about oh he wasn't the

0:17:45.600 --> 0:17:49.280
<v Speaker 3>mayor yet, he was only the Brooklyn Borough president. But

0:17:49.400 --> 0:17:51.960
<v Speaker 3>you have to think he had won the Democratic primary.

0:17:52.080 --> 0:17:54.479
<v Speaker 3>It was close to a certainty that he was going

0:17:54.520 --> 0:17:56.399
<v Speaker 3>to be the mayor. So then you get into a

0:17:56.480 --> 0:17:59.399
<v Speaker 3>question of fact. Would people at the Fire Department have

0:17:59.520 --> 0:18:02.800
<v Speaker 3>felt that the certain mayor in a few months is

0:18:02.800 --> 0:18:05.160
<v Speaker 3>putting pressure on them. That's going to be a question

0:18:05.200 --> 0:18:07.600
<v Speaker 3>of fact. So anything that's the question of fact means

0:18:07.600 --> 0:18:11.280
<v Speaker 3>that it's not appropriate for dismissal at this point. And

0:18:12.080 --> 0:18:13.879
<v Speaker 3>as I said, as much as we may think that

0:18:14.000 --> 0:18:17.359
<v Speaker 3>someday the Supreme Court may narrow this statute in a

0:18:17.359 --> 0:18:19.879
<v Speaker 3>way that matters to this case, it hasn't happened yet.

0:18:20.080 --> 0:18:22.119
<v Speaker 3>And so for those reasons, I think the motion to

0:18:22.200 --> 0:18:23.080
<v Speaker 3>dismiss will fail.

0:18:23.600 --> 0:18:26.439
<v Speaker 2>The defense attorney said he wants to finish the trial

0:18:26.560 --> 0:18:30.880
<v Speaker 2>before the March deadline for candidates to be certified for

0:18:30.960 --> 0:18:34.240
<v Speaker 2>the ballot. We don't want this case dragging, he said,

0:18:34.480 --> 0:18:35.840
<v Speaker 2>I mean, is March doable?

0:18:36.240 --> 0:18:39.200
<v Speaker 3>It is? I mean, this is another very aggressive move.

0:18:39.359 --> 0:18:43.679
<v Speaker 3>Usually the defense wants time themselves because they're usually, you know,

0:18:43.960 --> 0:18:47.040
<v Speaker 3>not taken completely by surprise. But once the case is brought,

0:18:47.080 --> 0:18:48.479
<v Speaker 3>you know, they have a lot of work to do.

0:18:48.880 --> 0:18:51.159
<v Speaker 3>But it keeps the prosecutor's seat to the fire. It

0:18:51.280 --> 0:18:56.200
<v Speaker 3>potentially hinders them from investigating as thoroughly as they might want.

0:18:56.280 --> 0:18:58.480
<v Speaker 3>Right if they have to go to trial sooner rather

0:18:58.560 --> 0:19:01.920
<v Speaker 3>than later. The Speedy Trial Bile Act gives seventy days.

0:19:02.119 --> 0:19:05.080
<v Speaker 3>There's a lot of time that will be automatically excluded

0:19:05.080 --> 0:19:07.480
<v Speaker 3>from that that it will extend that time out, like

0:19:07.600 --> 0:19:10.560
<v Speaker 3>time for the briefing and decision on motions and that

0:19:10.600 --> 0:19:13.600
<v Speaker 3>sort of thing. But if the defense comes in and says, listen,

0:19:13.960 --> 0:19:16.280
<v Speaker 3>we want a speedy trial, we want as little time

0:19:16.320 --> 0:19:19.280
<v Speaker 3>excluded as possible, we want to move, the judge is

0:19:19.440 --> 0:19:21.840
<v Speaker 3>likely to do that for them. So we're in the

0:19:21.840 --> 0:19:25.359
<v Speaker 3>beginning of October. I think they definitely could get a

0:19:25.400 --> 0:19:28.960
<v Speaker 3>trial in say February, that would allow them to be

0:19:29.040 --> 0:19:32.280
<v Speaker 3>done by March. I mean, the defense usually gets what

0:19:32.320 --> 0:19:36.000
<v Speaker 3>they want in these senses, because the criminal system gives

0:19:36.359 --> 0:19:38.800
<v Speaker 3>defendants a lot of right and you know, as they should.

0:19:39.400 --> 0:19:43.479
<v Speaker 2>Finally, the judge Dale Ho just took the bench in

0:19:43.760 --> 0:19:48.520
<v Speaker 2>August of twenty twenty three, so not very experienced. Do

0:19:48.600 --> 0:19:51.600
<v Speaker 2>you think that this case will be a lot for

0:19:51.720 --> 0:19:53.080
<v Speaker 2>a new judge to handle?

0:19:53.800 --> 0:19:54.119
<v Speaker 4>Yeah?

0:19:54.200 --> 0:19:56.639
<v Speaker 3>I do, I do. I mean, I really don't know

0:19:56.760 --> 0:19:58.840
<v Speaker 3>much about Judge Hoe. You know, he comes from the

0:19:58.880 --> 0:20:03.360
<v Speaker 3>ACLU and barely got through because the Republicans didn't want

0:20:03.400 --> 0:20:05.600
<v Speaker 3>him in, so he's bought to be, you know, really

0:20:05.640 --> 0:20:07.639
<v Speaker 3>on the liberal side. I don't know how that cuts

0:20:07.680 --> 0:20:11.439
<v Speaker 3>with a democratic Mayor as the defendant. And you know,

0:20:11.480 --> 0:20:13.280
<v Speaker 3>as you said, he hasn't been on the bench for

0:20:13.440 --> 0:20:17.400
<v Speaker 3>very long. This is high profile, it's complicated with some

0:20:17.440 --> 0:20:20.919
<v Speaker 3>of these legal issues, with the statute and the public

0:20:20.960 --> 0:20:24.199
<v Speaker 3>corruption realm. So I do think it's a challenge. You know,

0:20:24.240 --> 0:20:28.000
<v Speaker 3>I'm sure he's smart and capable, and he has lots

0:20:28.000 --> 0:20:31.000
<v Speaker 3>of colleagues on the Southern District Bench who have handled

0:20:31.000 --> 0:20:33.200
<v Speaker 3>all sorts of cases, so you know, I'm sure he'll

0:20:33.280 --> 0:20:36.399
<v Speaker 3>he'll consult with some of them, and yeah, it'll be

0:20:36.480 --> 0:20:38.840
<v Speaker 3>it'll be fun to watch how he handles all of it.

0:20:38.840 --> 0:20:42.080
<v Speaker 2>It's certainly shaping up to be an interesting trial. Thanks

0:20:42.119 --> 0:20:45.520
<v Speaker 2>so much for your insights, Jennifer. That's former federal prosecutor

0:20:45.600 --> 0:20:49.679
<v Speaker 2>Jennifer Rogers. Coming up next. The dock workers strike. This

0:20:49.840 --> 0:21:00.440
<v Speaker 2>is Bloomberg Job Union doc workers at whort it's from

0:21:00.520 --> 0:21:03.879
<v Speaker 2>Maine to Texas are walking picket lines in a strike

0:21:03.960 --> 0:21:07.960
<v Speaker 2>that could reignite inflation and cause shortages of goods if

0:21:07.960 --> 0:21:10.800
<v Speaker 2>it goes on more than a few weeks. The strike,

0:21:10.840 --> 0:21:14.280
<v Speaker 2>affecting thirty six ports, is the first by the International

0:21:14.320 --> 0:21:19.399
<v Speaker 2>long Shoremen's Association since nineteen seventy seven. It's not only

0:21:19.440 --> 0:21:23.720
<v Speaker 2>about wages, but about the workers demands that automation not

0:21:23.920 --> 0:21:27.040
<v Speaker 2>be added to the docks. Blaine Erlick heads the New

0:21:27.119 --> 0:21:30.960
<v Speaker 2>Orleans chapter of the ILA. The truth is robots do

0:21:31.080 --> 0:21:33.880
<v Speaker 2>not pay taxes and they not spend money in their community.

0:21:34.480 --> 0:21:37.640
<v Speaker 2>Joining me is Jonathan Todd, Vice chair of the Transportation

0:21:37.840 --> 0:21:42.040
<v Speaker 2>and Logistics Practice Group at Binesh Law, tell us about

0:21:42.040 --> 0:21:43.560
<v Speaker 2>the reasons behind the strike.

0:21:43.920 --> 0:21:49.240
<v Speaker 4>So port dispute happen, and we hear of these every

0:21:49.320 --> 0:21:54.200
<v Speaker 4>few years across the country. Usually it is a pay issue.

0:21:54.359 --> 0:21:58.760
<v Speaker 4>What's unique about this dispute is the ILA is challenging

0:21:58.800 --> 0:22:02.200
<v Speaker 4>not only the pay that they're receiving under their contracts,

0:22:02.200 --> 0:22:06.239
<v Speaker 4>but also the use of automation at the ports. And

0:22:06.280 --> 0:22:09.800
<v Speaker 4>it's an interesting character because this introduces the idea that

0:22:10.200 --> 0:22:15.159
<v Speaker 4>you protecting traditional labor itself is valuable. And this has

0:22:15.240 --> 0:22:18.760
<v Speaker 4>reminiscence of the actors strikes of a few years ago.

0:22:19.440 --> 0:22:22.119
<v Speaker 4>I think it's fascinating because we'll probably see more of this,

0:22:22.280 --> 0:22:25.359
<v Speaker 4>right But that's the challenge that I think is going

0:22:25.400 --> 0:22:28.880
<v Speaker 4>to be difficult. That this isn't the traditional issue of

0:22:29.320 --> 0:22:31.679
<v Speaker 4>do we pay more and if so, how much? This

0:22:31.800 --> 0:22:34.199
<v Speaker 4>is an issue of exactly what we want from labor

0:22:34.440 --> 0:22:35.040
<v Speaker 4>at our port.

0:22:35.840 --> 0:22:40.960
<v Speaker 2>The president, Harold Daggett said, we want absolute, airtight language

0:22:41.000 --> 0:22:44.960
<v Speaker 2>that there will be no automation or semi automation. Is

0:22:44.960 --> 0:22:48.479
<v Speaker 2>that trying to keep the docs you know from modern

0:22:48.520 --> 0:22:50.880
<v Speaker 2>innovations that would move things faster.

0:22:51.760 --> 0:22:54.960
<v Speaker 4>It's interesting, right, because the world is changing and there's

0:22:55.000 --> 0:22:58.359
<v Speaker 4>been automation for a great period of time. But today

0:22:58.400 --> 0:23:03.040
<v Speaker 4>the capabilities that ports could have to automate what was

0:23:03.160 --> 0:23:07.439
<v Speaker 4>traditionally done by labor, and by you know, more labor

0:23:07.480 --> 0:23:10.000
<v Speaker 4>than could otherwise have, which of course has costs. It

0:23:10.160 --> 0:23:12.199
<v Speaker 4>is greater today than it was. We'll only see that

0:23:12.240 --> 0:23:17.720
<v Speaker 4>grow and so it really is almost unexistential question of

0:23:17.760 --> 0:23:21.080
<v Speaker 4>the degree to which, you know, we value labor in

0:23:21.119 --> 0:23:22.720
<v Speaker 4>this country and traditional jobs.

0:23:23.200 --> 0:23:25.720
<v Speaker 2>As far as the pay raise they offered them something

0:23:25.760 --> 0:23:29.240
<v Speaker 2>like fifty percent raises over the life of the contract,

0:23:29.320 --> 0:23:33.120
<v Speaker 2>with the union on seventy seven percent, that's right.

0:23:33.400 --> 0:23:36.760
<v Speaker 4>I think it is more of a question of, you know,

0:23:36.840 --> 0:23:40.160
<v Speaker 4>what the union would be comfortable with in terms of

0:23:40.640 --> 0:23:44.040
<v Speaker 4>the financial side of it. But the real challenge that

0:23:44.160 --> 0:23:47.880
<v Speaker 4>I see is the question of the degree to which

0:23:47.920 --> 0:23:52.160
<v Speaker 4>we can employ humans in traditional jobs. That's I think

0:23:52.200 --> 0:23:54.800
<v Speaker 4>more fascinating than the question of whether we land at

0:23:55.080 --> 0:23:57.399
<v Speaker 4>fifty percent or seventy seven percent, which are some of

0:23:57.440 --> 0:23:59.800
<v Speaker 4>the numbers on the table, But it all has a

0:24:00.000 --> 0:24:03.600
<v Speaker 4>and that effect of driving you know the cost of

0:24:03.720 --> 0:24:07.000
<v Speaker 4>the service and ultimately you know the cost to land

0:24:07.080 --> 0:24:10.320
<v Speaker 4>product in the US or export product from the US.

0:24:10.640 --> 0:24:14.360
<v Speaker 4>You know, this really is essentially a precipice of what

0:24:14.440 --> 0:24:18.800
<v Speaker 4>we intend to see in terms of human labor at

0:24:18.840 --> 0:24:20.760
<v Speaker 4>our ports. On the East Coast in the Gulf.

0:24:21.760 --> 0:24:25.720
<v Speaker 2>They did settle a doc worker strike on the West Coast.

0:24:26.040 --> 0:24:29.720
<v Speaker 4>One thing I will say is the West Coast tensions

0:24:29.960 --> 0:24:34.640
<v Speaker 4>of late we're interesting in the sense that the unions

0:24:34.640 --> 0:24:39.320
<v Speaker 4>took a different strategy. So the IWLA introduced a rolling

0:24:39.359 --> 0:24:45.680
<v Speaker 4>strike on a on a port support basis, which was resolved,

0:24:45.760 --> 0:24:48.680
<v Speaker 4>you know, relatively quickly, without a great deal of interruption.

0:24:49.720 --> 0:24:53.160
<v Speaker 4>The reason that this approach is you know, very serious

0:24:53.880 --> 0:24:57.639
<v Speaker 4>for the American consumer is because we're talking about a

0:24:58.080 --> 0:25:01.439
<v Speaker 4>strike you know, in mass across thirty six you know,

0:25:01.520 --> 0:25:04.919
<v Speaker 4>major port in the East Coast and the Gulf, and

0:25:04.960 --> 0:25:08.560
<v Speaker 4>of course that accounts for around fifty percent of import

0:25:08.560 --> 0:25:11.800
<v Speaker 4>and export traffic. So the strategy that's being deployed here

0:25:12.359 --> 0:25:15.560
<v Speaker 4>is very different than has been deployed in a recent

0:25:15.600 --> 0:25:16.880
<v Speaker 4>memory on the West Coast.

0:25:17.080 --> 0:25:19.080
<v Speaker 2>Yeah, I was going to say that it seems like

0:25:19.119 --> 0:25:22.840
<v Speaker 2>a more traditional strike than the West Coast and then

0:25:22.880 --> 0:25:26.440
<v Speaker 2>the UAW employed when they went on strike.

0:25:27.040 --> 0:25:27.600
<v Speaker 4>That's right.

0:25:27.760 --> 0:25:32.919
<v Speaker 2>Let's talk about in theory the authority of the president

0:25:33.480 --> 0:25:35.399
<v Speaker 2>to stop the strike.

0:25:35.560 --> 0:25:38.800
<v Speaker 4>So that the president does have the power under the

0:25:38.880 --> 0:25:44.400
<v Speaker 4>Taft Hartley Act to essentially enjoin the strike and require

0:25:44.440 --> 0:25:48.600
<v Speaker 4>a cooling off period when labor would resume and the

0:25:48.640 --> 0:25:52.480
<v Speaker 4>parties would come to the table and discuss the path

0:25:52.560 --> 0:25:56.479
<v Speaker 4>forward to resolve the dispute. This president has on multiple

0:25:56.520 --> 0:26:01.280
<v Speaker 4>occasions said that he does not intend to exercise that power,

0:26:01.520 --> 0:26:05.080
<v Speaker 4>which leads to the really big question for domestic supply chains,

0:26:05.119 --> 0:26:08.800
<v Speaker 4>which is how long will this last? When when clients

0:26:08.880 --> 0:26:12.840
<v Speaker 4>asked me that, and have asked me that in recent years,

0:26:12.880 --> 0:26:15.560
<v Speaker 4>my answer is typically, you know, to expect, you know,

0:26:15.640 --> 0:26:18.639
<v Speaker 4>maybe one or two weeks. And the reason that I

0:26:18.760 --> 0:26:22.320
<v Speaker 4>say that is the last you know, very major strike

0:26:22.720 --> 0:26:25.399
<v Speaker 4>that had implications, you know, such as this was in

0:26:25.440 --> 0:26:29.399
<v Speaker 4>two thousand and two on the West Coast and President

0:26:29.440 --> 0:26:33.399
<v Speaker 4>George W. Bush did exercise half partly and the strike

0:26:33.480 --> 0:26:36.840
<v Speaker 4>was resolved in eleven days. In the absence of that

0:26:36.920 --> 0:26:41.919
<v Speaker 4>kind of action. However, it's essentially anyone's guests as to

0:26:41.960 --> 0:26:43.400
<v Speaker 4>how long this strike may last.

0:26:44.160 --> 0:26:48.200
<v Speaker 2>And the president could, if you wanted, get a court

0:26:48.359 --> 0:26:51.640
<v Speaker 2>order for a cooling off period, right, so.

0:26:51.560 --> 0:26:53.879
<v Speaker 4>There would be a federal action and there would be

0:26:53.880 --> 0:26:57.520
<v Speaker 4>an injunction ending the strike, and then the parties would

0:26:57.560 --> 0:27:01.119
<v Speaker 4>have eighty days as a cooling off period to negotiate

0:27:01.200 --> 0:27:01.800
<v Speaker 4>a resolution.

0:27:02.400 --> 0:27:05.720
<v Speaker 2>So there are a lot of different factors here. Does

0:27:05.760 --> 0:27:09.359
<v Speaker 2>it seem like the union has an advantage in a

0:27:09.400 --> 0:27:14.760
<v Speaker 2>way because of the supply chain is under pressure in

0:27:14.800 --> 0:27:19.160
<v Speaker 2>the aftermath of the hurricane, and you know, it's peak

0:27:19.240 --> 0:27:24.160
<v Speaker 2>shipping season for holiday goods, and it's a presidential election

0:27:24.600 --> 0:27:28.320
<v Speaker 2>coming up soon, so there might be political factors as well.

0:27:29.520 --> 0:27:32.360
<v Speaker 4>Everything you said is exactly right. This is a perfect

0:27:32.359 --> 0:27:37.280
<v Speaker 4>storm of events. We have the presidential race, which you know,

0:27:37.560 --> 0:27:43.600
<v Speaker 4>probably to some degree, influences the executive branch logic on

0:27:43.680 --> 0:27:46.840
<v Speaker 4>how to handle this issue. We also have peak season

0:27:46.920 --> 0:27:51.199
<v Speaker 4>coming particularly for retailers. This is exactly the time that

0:27:51.280 --> 0:27:55.000
<v Speaker 4>retailers are looking to build up inventories so that the

0:27:55.160 --> 0:27:58.760
<v Speaker 4>stores have everything they need to sell through the holiday season.

0:27:59.119 --> 0:28:01.240
<v Speaker 4>Much of that has occurred, some of that has actually

0:28:01.320 --> 0:28:05.760
<v Speaker 4>been front loaded for a number of factors. One of

0:28:05.800 --> 0:28:09.120
<v Speaker 4>those is that the Biden administration rolled out additional duties

0:28:09.160 --> 0:28:14.359
<v Speaker 4>on China goods in September twenty seven, and so all

0:28:14.440 --> 0:28:18.240
<v Speaker 4>these things are coming together that led to additional inflows

0:28:18.320 --> 0:28:22.000
<v Speaker 4>in the West Coast. But it's very very challenging. The

0:28:22.080 --> 0:28:25.680
<v Speaker 4>idea that we no longer have capacity as a country

0:28:26.160 --> 0:28:28.600
<v Speaker 4>to move essentially fifty percent of the goods that we

0:28:28.600 --> 0:28:32.640
<v Speaker 4>would otherwise move into and out of the country is

0:28:32.760 --> 0:28:38.040
<v Speaker 4>economically challenging, and it's important for people to bear in

0:28:38.080 --> 0:28:41.560
<v Speaker 4>mind also that this isn't just an import problem. This

0:28:41.600 --> 0:28:45.360
<v Speaker 4>isn't just ensuring that Americans have all of the goods

0:28:45.400 --> 0:28:48.200
<v Speaker 4>that they would like to buy now and through the

0:28:48.240 --> 0:28:51.560
<v Speaker 4>holiday season. It's also an export problem. There are high

0:28:51.760 --> 0:28:55.240
<v Speaker 4>export volumes at these ports, and so you have a

0:28:55.320 --> 0:28:59.480
<v Speaker 4>number of industries that are impacted, particularly agriculture and the

0:28:59.520 --> 0:29:04.400
<v Speaker 4>auto dutry, where it's now an increased challenge to sell

0:29:04.680 --> 0:29:09.400
<v Speaker 4>domestically produced or domestically manufactured goods around the world due

0:29:09.400 --> 0:29:10.520
<v Speaker 4>to the strike.

0:29:11.200 --> 0:29:14.200
<v Speaker 2>How automated are foreign ports.

0:29:14.720 --> 0:29:20.280
<v Speaker 4>So the degree of automation can be very surprising.

0:29:20.800 --> 0:29:20.920
<v Speaker 2>Uh.

0:29:21.080 --> 0:29:24.680
<v Speaker 4>The the idea that you need an individual for example,

0:29:25.640 --> 0:29:30.840
<v Speaker 4>in equipment at the ports to to visually inspect what

0:29:30.880 --> 0:29:34.160
<v Speaker 4>they're doing and ensure that containers are are offloaded and

0:29:34.480 --> 0:29:38.000
<v Speaker 4>loaded correctly. With the technology we have today, that that's

0:29:38.040 --> 0:29:42.440
<v Speaker 4>not exactly necessary. There are foreign ports, for examples, that

0:29:42.600 --> 0:29:47.120
<v Speaker 4>have individuals that essentially work remotely, meaning that they're not

0:29:47.560 --> 0:29:51.120
<v Speaker 4>you know, at the port on the ground of managing

0:29:51.240 --> 0:29:57.080
<v Speaker 4>equipment to to offload containers and load containers onto vessels.

0:29:57.640 --> 0:30:01.840
<v Speaker 4>So the idea is that you could dramatically reduced headcounts

0:30:01.880 --> 0:30:07.600
<v Speaker 4>and dramatically increase efficiencies with technology. It's happening right now,

0:30:08.120 --> 0:30:10.400
<v Speaker 4>and you know, one way to think about is is

0:30:10.480 --> 0:30:14.360
<v Speaker 4>in many ways analogous to you know, remote work. Generally,

0:30:14.720 --> 0:30:17.800
<v Speaker 4>you know, there are things that technology can do where

0:30:17.800 --> 0:30:20.720
<v Speaker 4>we no longer need individuals or what you hear more

0:30:20.760 --> 0:30:24.000
<v Speaker 4>frequently is that the technology can assist you know, an

0:30:24.000 --> 0:30:29.160
<v Speaker 4>individual in being more productive, maybe moving more containers, maybe

0:30:29.200 --> 0:30:32.800
<v Speaker 4>not physically being in a dangerous position as they're doing

0:30:32.840 --> 0:30:36.440
<v Speaker 4>their work at the court, and those things you can

0:30:36.520 --> 0:30:40.840
<v Speaker 4>understand an abstraction and elsewhere, you know, may be attractive,

0:30:41.600 --> 0:30:44.080
<v Speaker 4>which is why here, you know, we as a nation

0:30:44.160 --> 0:30:46.440
<v Speaker 4>are now confronted with the question of exactly what do

0:30:46.520 --> 0:30:50.440
<v Speaker 4>we want court labor to do and to what degree

0:30:51.320 --> 0:30:55.040
<v Speaker 4>do we feel that that is, you know, valuable because

0:30:55.080 --> 0:30:58.280
<v Speaker 4>you can do a lot of the work with less

0:30:58.280 --> 0:30:59.840
<v Speaker 4>of the labor than you otherwise would.

0:31:00.280 --> 0:31:03.680
<v Speaker 2>What are the estimates for how long before a strike

0:31:04.320 --> 0:31:06.160
<v Speaker 2>affects the supply chain?

0:31:06.600 --> 0:31:10.000
<v Speaker 4>Right so there is disruption right now. I have clients

0:31:10.080 --> 0:31:15.640
<v Speaker 4>who are receiving force majeur notices from the steamship lines,

0:31:16.360 --> 0:31:20.320
<v Speaker 4>essentially saying that you know the anticipated delivery times for

0:31:20.400 --> 0:31:24.840
<v Speaker 4>their containers, and even you know the cost of receiving

0:31:24.880 --> 0:31:29.520
<v Speaker 4>the containers cannot be observed because of course many vessels

0:31:29.560 --> 0:31:32.680
<v Speaker 4>can no longer call upon the ports that they that

0:31:32.720 --> 0:31:37.400
<v Speaker 4>they otherwise would. Those clients who are moving you know,

0:31:37.440 --> 0:31:39.680
<v Speaker 4>cargoes into and out of the United States and are

0:31:40.120 --> 0:31:43.160
<v Speaker 4>are confronting this right now, have a number of tools

0:31:43.160 --> 0:31:45.160
<v Speaker 4>in the toolbox, and this is really a time when

0:31:45.520 --> 0:31:48.560
<v Speaker 4>you know, the logistics industry can do what it does best.

0:31:49.200 --> 0:31:53.040
<v Speaker 4>Some of those tools we saw during COVID and during

0:31:53.160 --> 0:31:58.240
<v Speaker 4>other disruptions like the Baltimore Bridge collapse, for example. I'm

0:31:58.280 --> 0:32:01.160
<v Speaker 4>aware of some in this trees that are using air

0:32:01.240 --> 0:32:04.320
<v Speaker 4>cargo more than they otherwise would. You know, you could

0:32:04.400 --> 0:32:07.840
<v Speaker 4>move a number of goods, especially lighter goods, smaller goods

0:32:08.160 --> 0:32:12.040
<v Speaker 4>by our cargo. It's much more expensive, but it is

0:32:12.360 --> 0:32:17.000
<v Speaker 4>reliable in an environment like this. I'm also aware of

0:32:17.200 --> 0:32:21.040
<v Speaker 4>some domestic UUs industries that are looking at options beyond

0:32:21.120 --> 0:32:24.959
<v Speaker 4>just diverting vessels to the West Coast because this is

0:32:25.520 --> 0:32:28.160
<v Speaker 4>you know, costly and time consuming as well. I know

0:32:28.240 --> 0:32:32.960
<v Speaker 4>some folks are exploring perhaps landing cargoes in Canada or

0:32:33.200 --> 0:32:37.040
<v Speaker 4>Mexico and then moving those containers cross border by motor

0:32:37.120 --> 0:32:40.719
<v Speaker 4>carrier or by rail. That there's really not a good

0:32:40.760 --> 0:32:43.600
<v Speaker 4>answer right now in the sense that all of that

0:32:43.800 --> 0:32:49.440
<v Speaker 4>is difficult and time consuming and costly, and expectations for

0:32:50.080 --> 0:32:53.640
<v Speaker 4>when you will receive inventories or have let's say inputs

0:32:53.640 --> 0:32:56.960
<v Speaker 4>for your own domestic manufacturing, you know, those expectations you

0:32:57.000 --> 0:32:59.000
<v Speaker 4>know very well may not be met. But I viewed

0:32:59.040 --> 0:33:01.120
<v Speaker 4>as a short term and long term problem. Right so,

0:33:01.160 --> 0:33:04.720
<v Speaker 4>there are there are inbound and outbound movements right now

0:33:05.280 --> 0:33:10.240
<v Speaker 4>that are absolutely interrupted. Some client supply chains got in

0:33:10.320 --> 0:33:14.000
<v Speaker 4>front of this by moving cargoes to the West Coast instead,

0:33:14.080 --> 0:33:15.959
<v Speaker 4>but there's absolutely disruption today.

0:33:16.240 --> 0:33:19.000
<v Speaker 2>Thanks for being on the show. That's Jonathan Todd of

0:33:19.040 --> 0:33:21.800
<v Speaker 2>Banesh Law and that's it for this edition of the

0:33:21.840 --> 0:33:25.160
<v Speaker 2>Bloomberg Law Podcast. Remember you can always get the latest

0:33:25.200 --> 0:33:28.080
<v Speaker 2>legal news by subscribing and listening to the show on

0:33:28.160 --> 0:33:32.480
<v Speaker 2>Apple Podcasts, Spotify, and at Bloomberg dot com, slash podcast,

0:33:32.560 --> 0:33:36.400
<v Speaker 2>slash Law. I'm June Grosso, and this is Bloomberg