1 00:00:00,440 --> 00:00:03,200 Speaker 1: Why from our nation's camera this budget thing is going 2 00:00:03,240 --> 00:00:05,680 Speaker 1: to do nothing space sports. I still think it's interesting 3 00:00:05,680 --> 00:00:09,760 Speaker 1: President Trump not playing his cards yet headlines policy and politics, 4 00:00:09,840 --> 00:00:14,560 Speaker 1: colliding to sound on with Kevin's related the insiders, the influencers, 5 00:00:14,720 --> 00:00:17,520 Speaker 1: the insides. I would rather see a congressional solution. It's 6 00:00:17,560 --> 00:00:20,520 Speaker 1: part of my DNA. The Senate map in looks a 7 00:00:20,520 --> 00:00:22,840 Speaker 1: lot different than it looked in. You really have a 8 00:00:22,880 --> 00:00:26,160 Speaker 1: divide within Team Trump. The president has to do exactly 9 00:00:26,200 --> 00:00:27,960 Speaker 1: what people seven here to do, which is to get 10 00:00:27,960 --> 00:00:31,400 Speaker 1: it done. Is he's sound on with Kevin's her relate 11 00:00:31,640 --> 00:00:35,280 Speaker 1: on Bloomberg one and one oh five point seven m 12 00:00:35,400 --> 00:00:39,400 Speaker 1: h D two Boltemore, What a day, folks have you 13 00:00:39,479 --> 00:00:44,599 Speaker 1: been following this Boeing scandal. Boeing crisis has escalated as 14 00:00:44,640 --> 00:00:49,280 Speaker 1: countries are grounding several seven thirty seven jets. We have 15 00:00:49,360 --> 00:00:53,560 Speaker 1: the political fallout, the business fallout, plus what the White 16 00:00:53,640 --> 00:00:58,480 Speaker 1: House is saying about Boeing. Congressman Jim Banks joins us 17 00:00:58,520 --> 00:01:01,360 Speaker 1: on the line. Coming up, Republican will give us his 18 00:01:01,440 --> 00:01:05,440 Speaker 1: take on the growing other scandal not facing Boeing, but 19 00:01:05,520 --> 00:01:10,000 Speaker 1: Huawei and ZTE. This amid the backdrop of the US 20 00:01:10,400 --> 00:01:13,919 Speaker 1: China trade talks. All of that plus the politics today 21 00:01:14,080 --> 00:01:18,919 Speaker 1: busy day on Capitol Hill, Wells Fargo CEO Tim Sloan 22 00:01:19,040 --> 00:01:23,119 Speaker 1: testifying before the House Financial Services Committee. Then we had 23 00:01:23,640 --> 00:01:28,440 Speaker 1: elsewhere US Trade Representative Bob Lightheiser talking again in the 24 00:01:28,480 --> 00:01:32,680 Speaker 1: Senate with regards to the US China trade talks. And 25 00:01:33,080 --> 00:01:35,080 Speaker 1: we've got an all star panel to help break it 26 00:01:35,120 --> 00:01:38,600 Speaker 1: down for US. Kurb Bardella is a political columnist. He 27 00:01:38,720 --> 00:01:42,360 Speaker 1: is a USA Today Board of contributors and NBC News 28 00:01:42,720 --> 00:01:48,680 Speaker 1: Think contributor contributor. He's also a political switcheroo convert. He 29 00:01:49,120 --> 00:01:51,120 Speaker 1: used to be a Republican, now he's a Democrat. And 30 00:01:51,120 --> 00:01:55,280 Speaker 1: Brian Darling is former senior communications director for Senator Ran Paul. 31 00:01:55,320 --> 00:01:59,920 Speaker 1: He's also founder of Liberty Government Affairs. And I would 32 00:02:00,000 --> 00:02:02,080 Speaker 1: be remiss if I said that somehow we're not going 33 00:02:02,160 --> 00:02:04,720 Speaker 1: to find a way to talk about what's been trending 34 00:02:04,800 --> 00:02:07,680 Speaker 1: nationally today. Aunt Becky Lori Laughlin wrapped up in that 35 00:02:07,840 --> 00:02:12,000 Speaker 1: scandal folks, about trying to get kids into college unfairly. 36 00:02:12,040 --> 00:02:14,880 Speaker 1: Before we get into the policy and politics of today, 37 00:02:15,200 --> 00:02:19,080 Speaker 1: have you followed this Boeing crisis, And that's really what 38 00:02:19,120 --> 00:02:23,640 Speaker 1: it is, folks. It's a crisis and Boeing has grounded UH. 39 00:02:23,720 --> 00:02:26,720 Speaker 1: There's seven thirty seven Max, and the number of countries 40 00:02:26,760 --> 00:02:30,400 Speaker 1: and airlines grounding the seven thirty seven Max is climbing steadily. 41 00:02:31,080 --> 00:02:35,480 Speaker 1: This following the second deadly accident in just five months. 42 00:02:35,840 --> 00:02:40,320 Speaker 1: Five months to deadly accidents, and US regulators and several 43 00:02:40,360 --> 00:02:46,000 Speaker 1: prominent carriers are standing by the embattled Boeing Co. Aircraft. 44 00:02:46,040 --> 00:02:48,840 Speaker 1: And this crisis really has engulfed the company as shaken 45 00:02:48,840 --> 00:02:52,639 Speaker 1: confidence in the top selling plane. They've delivered more than 46 00:02:52,680 --> 00:02:56,040 Speaker 1: three d and fifty of the single aisle Max. It's 47 00:02:56,080 --> 00:03:01,040 Speaker 1: that Boeing seven thirty seven and now they're investigating it. 48 00:03:01,080 --> 00:03:05,560 Speaker 1: But the US Federal Aviation Administration f A a UH 49 00:03:05,680 --> 00:03:10,600 Speaker 1: day on Monday reaffirmed confidence in the plane. But I 50 00:03:10,639 --> 00:03:16,760 Speaker 1: mean folks all around the world, whether it's China, the UK, Singapore, Europe, 51 00:03:17,440 --> 00:03:21,639 Speaker 1: the European Union aviation safety agencies suspending all Max eight 52 00:03:21,720 --> 00:03:25,280 Speaker 1: and Max nine flights. This is a swift rebuke UH 53 00:03:25,320 --> 00:03:29,720 Speaker 1: to to Boeing UH and to one of the most influential, 54 00:03:29,760 --> 00:03:34,160 Speaker 1: if not the most influential US company UH worldwide. Joining 55 00:03:34,200 --> 00:03:38,200 Speaker 1: us on the line. Congressman UH. Congressman Banks is a 56 00:03:38,240 --> 00:03:42,240 Speaker 1: Republican from Indiana, and we're so grateful to have him 57 00:03:42,280 --> 00:03:45,680 Speaker 1: on UH. And we are going to ask Congressman Jim Banks, 58 00:03:45,720 --> 00:03:49,200 Speaker 1: a Republican from Indiana, about what's going on with US 59 00:03:49,280 --> 00:03:51,760 Speaker 1: China trade talks. But first, Congressman, I want to get 60 00:03:51,800 --> 00:03:56,280 Speaker 1: your response to all of these investigations into Boeing. UH. 61 00:03:56,800 --> 00:04:01,840 Speaker 1: What do you think ought to be done out? Well, Hey, Kevin, 62 00:04:01,920 --> 00:04:05,480 Speaker 1: gonna be with you again. I spoke with Boeing officials 63 00:04:05,520 --> 00:04:09,320 Speaker 1: earlier today in my office, and I know that the 64 00:04:09,400 --> 00:04:12,520 Speaker 1: CEO of Boeing spoke with the President just a little 65 00:04:12,560 --> 00:04:17,000 Speaker 1: bit ago. UM. As well as as these investigations unfold, 66 00:04:17,200 --> 00:04:19,000 Speaker 1: they need to unfold very quickly. I mean, there's no 67 00:04:19,080 --> 00:04:22,880 Speaker 1: time to waste here to these investigations sometimes can draw 68 00:04:22,960 --> 00:04:26,280 Speaker 1: out too long, but I think we have to wait 69 00:04:26,480 --> 00:04:31,240 Speaker 1: and determine what are our federal officials determined after a 70 00:04:31,279 --> 00:04:34,440 Speaker 1: thorough investigations of these bowing planes being used in the 71 00:04:34,520 --> 00:04:37,840 Speaker 1: United States and draw conclusions from there, and just a 72 00:04:37,920 --> 00:04:40,840 Speaker 1: quick follow up on that before we switch gears. In 73 00:04:40,960 --> 00:04:45,160 Speaker 1: terms of the global response, what can what role does 74 00:04:45,200 --> 00:04:48,640 Speaker 1: the US have to to play with Boeing to assure 75 00:04:48,920 --> 00:04:53,080 Speaker 1: worldwide that Boeing aircraft are are going to be safe 76 00:04:53,160 --> 00:04:58,440 Speaker 1: for folks to to fly well. Boeing is a obviously 77 00:04:58,520 --> 00:05:03,440 Speaker 1: a well connect did global companies, so they're their tentacles 78 00:05:03,440 --> 00:05:07,839 Speaker 1: in the every developed country in the world. Is substantial 79 00:05:07,880 --> 00:05:11,960 Speaker 1: in its own right. But no doubt the Trump administration 80 00:05:12,120 --> 00:05:15,200 Speaker 1: is is in constant contact with Boeing. Don't forget that 81 00:05:15,240 --> 00:05:20,200 Speaker 1: the Acting Secretary Defense Shanahan spent twenty years at Boeing 82 00:05:20,279 --> 00:05:23,960 Speaker 1: before going to the Pentagon as well. So there are 83 00:05:24,000 --> 00:05:26,520 Speaker 1: tentacles of that Boeing has all over the world, but 84 00:05:26,600 --> 00:05:30,240 Speaker 1: also into the Trump administration. Um, all of that to say, 85 00:05:30,480 --> 00:05:34,360 Speaker 1: we've got a way to to see what these investigations determined. 86 00:05:34,400 --> 00:05:37,000 Speaker 1: At this point, all we know is a couple of 87 00:05:37,120 --> 00:05:40,080 Speaker 1: terrible accidents have happened, and UM, we need to take 88 00:05:40,080 --> 00:05:42,400 Speaker 1: a step back from from that, let the investigations work. 89 00:05:42,520 --> 00:05:46,440 Speaker 1: Congressman Jim Bank's Republicans, serving Indiana's third district. He's a 90 00:05:46,480 --> 00:05:49,760 Speaker 1: member of the House Armed Services Committee, the House Committee 91 00:05:49,760 --> 00:05:53,520 Speaker 1: on Education and Labor, and the House Veterans Affairs Committee. 92 00:05:53,520 --> 00:05:57,520 Speaker 1: He's actually also proposing the formation of a task force 93 00:05:57,560 --> 00:06:02,680 Speaker 1: to monitor foreign students. This in particular comes as US 94 00:06:02,720 --> 00:06:07,159 Speaker 1: intelligence intelligence agencies. UH. He's proposing when monitor participation in 95 00:06:07,279 --> 00:06:14,920 Speaker 1: sensitive university research by Chinese telecom gearmakers Huawei and Zte. Congressman, 96 00:06:15,400 --> 00:06:17,520 Speaker 1: this is all coming in the backdrop of the US 97 00:06:17,600 --> 00:06:19,640 Speaker 1: China trade talks. Talk to me a little bit about 98 00:06:19,680 --> 00:06:23,280 Speaker 1: what exactly you are proposing should get done in order 99 00:06:23,320 --> 00:06:28,719 Speaker 1: to make sure Huawei and Zte aren't interfering in US intelligence. Well, Kevin, 100 00:06:28,800 --> 00:06:32,960 Speaker 1: we we dropped our bill earlier today, the the Protect 101 00:06:33,200 --> 00:06:38,400 Speaker 1: American Universities Act UM, addressing these serious issues that have 102 00:06:38,480 --> 00:06:42,240 Speaker 1: been been in the in the news UM of late 103 00:06:42,279 --> 00:06:44,919 Speaker 1: even last week, there was a significant article in the 104 00:06:44,920 --> 00:06:49,960 Speaker 1: Wall Street Journal about Chinese hackers targeting universities UM who 105 00:06:50,000 --> 00:06:54,640 Speaker 1: do maritime military research. There are a broad range of 106 00:06:54,680 --> 00:07:02,000 Speaker 1: examples of where UM Chinese entities like Huawei, Zte, Confucius 107 00:07:02,000 --> 00:07:07,520 Speaker 1: Institutes have been used by China to infiltrate American universities 108 00:07:07,560 --> 00:07:13,680 Speaker 1: that perform sensitive and fundamental UM national security research. So 109 00:07:13,880 --> 00:07:15,600 Speaker 1: my my bill does a few things. I mean, first, 110 00:07:15,600 --> 00:07:18,280 Speaker 1: it sets up a task force at the Department of 111 00:07:18,360 --> 00:07:22,040 Speaker 1: Education to elevate the seriousness of these issues. But it 112 00:07:22,080 --> 00:07:28,360 Speaker 1: also prevents certain students coming from four different countries China, Iran, 113 00:07:28,680 --> 00:07:33,680 Speaker 1: North Korea, and Russia from performing sensitive research outside of 114 00:07:33,720 --> 00:07:37,760 Speaker 1: their area of academic study, preventing those students from being 115 00:07:37,800 --> 00:07:41,240 Speaker 1: involved in that sensitive research unless they receive a waiver 116 00:07:41,480 --> 00:07:44,720 Speaker 1: from the Director of National Intelligence to do so. These 117 00:07:44,920 --> 00:07:48,440 Speaker 1: are common sess measures to protect our sensitive secrets, our 118 00:07:48,520 --> 00:07:53,360 Speaker 1: national security research on these college campuses after a number 119 00:07:53,400 --> 00:07:57,120 Speaker 1: of reports that show that um that research has been infiltrated. 120 00:07:57,160 --> 00:08:00,679 Speaker 1: Congressman Jim Banks, Republican from Indiana, we're talking about Huawei 121 00:08:00,760 --> 00:08:04,200 Speaker 1: z et. We're talking about foreign influence, not on elections, 122 00:08:04,240 --> 00:08:08,680 Speaker 1: not on democratic lowercase D institutions, but on the higher 123 00:08:08,840 --> 00:08:12,440 Speaker 1: education system. And Congressman, I've got to be candid here. Tomorrow, 124 00:08:12,480 --> 00:08:15,600 Speaker 1: I'm going to be interviewing Senator Chris Coons, a Democrat 125 00:08:15,640 --> 00:08:18,640 Speaker 1: from Delaware. The other week, I I uh, I interviewed 126 00:08:18,680 --> 00:08:23,600 Speaker 1: Senator Carper, his colleague from from Delaware as well, and 127 00:08:23,640 --> 00:08:27,120 Speaker 1: they're also talking about a lot of the concerns about 128 00:08:27,240 --> 00:08:32,000 Speaker 1: China interference in the education system. Uh. And what I'm 129 00:08:32,040 --> 00:08:34,959 Speaker 1: what I'm starting to pick up on is that this 130 00:08:35,040 --> 00:08:37,320 Speaker 1: is this is becoming a non part is an issue 131 00:08:37,800 --> 00:08:40,160 Speaker 1: in terms of you know, we've we've talked so much 132 00:08:40,200 --> 00:08:44,480 Speaker 1: about foreign interference on elections and whatnot, but Chinese interference 133 00:08:45,400 --> 00:08:50,800 Speaker 1: on on on our educational UH, on our educational structures, no, 134 00:08:50,800 --> 00:08:52,760 Speaker 1: no doubt about it. Kevin Senator Cos and I were 135 00:08:52,800 --> 00:08:56,040 Speaker 1: just in Munich at the Munich the Curate Conference together 136 00:08:56,280 --> 00:08:59,920 Speaker 1: and Vice Presidents Pence spoke. Obviously, his speech received a 137 00:09:00,160 --> 00:09:03,200 Speaker 1: lot of attention for other reasons, but part of his 138 00:09:03,320 --> 00:09:06,640 Speaker 1: address at the Munich Security Conference was warning our allies 139 00:09:06,679 --> 00:09:11,600 Speaker 1: abroad not to turn UM to the East and UH 140 00:09:11,920 --> 00:09:16,520 Speaker 1: pursue partnerships with companies like Whahwei um and that there's 141 00:09:16,520 --> 00:09:18,800 Speaker 1: a price there there there will be a price for 142 00:09:18,800 --> 00:09:23,040 Speaker 1: our allies adopting Whahwei and other solutions to their five 143 00:09:23,080 --> 00:09:26,559 Speaker 1: G networks. For example, if we're putting pressure on our 144 00:09:26,600 --> 00:09:30,800 Speaker 1: allies not to adopt Huawei as a partner, why would 145 00:09:30,800 --> 00:09:33,400 Speaker 1: we not be putting pressure on American universities who are 146 00:09:33,400 --> 00:09:36,120 Speaker 1: doing exactly the same thing in a way, in a 147 00:09:36,160 --> 00:09:40,200 Speaker 1: way that has led um UH those entities to to 148 00:09:40,840 --> 00:09:46,320 Speaker 1: infiltrate campuses in a with espionage tactics to obtain our 149 00:09:46,440 --> 00:09:49,079 Speaker 1: national security secrets. And the Wall Street Journal piece that 150 00:09:49,120 --> 00:09:52,680 Speaker 1: I referenced a little bit ago um It from March 151 00:09:52,840 --> 00:09:57,600 Speaker 1: of five um it it is one of many examples 152 00:09:57,720 --> 00:10:01,000 Speaker 1: of exactly that happening on American Unit. So my my 153 00:10:01,080 --> 00:10:03,599 Speaker 1: legislation well well, by the way, while most of the 154 00:10:03,600 --> 00:10:07,600 Speaker 1: country is focused on Aunt Becky paying for her to 155 00:10:07,840 --> 00:10:12,120 Speaker 1: uh to get into premier colleges, which is an insane scavenge, 156 00:10:12,160 --> 00:10:15,559 Speaker 1: we're focused on on work like this and and dropped 157 00:10:15,600 --> 00:10:18,000 Speaker 1: our bill today with with some fanfare, and I've got 158 00:10:18,040 --> 00:10:21,080 Speaker 1: I had a few of my my colleagues sign on 159 00:10:21,160 --> 00:10:25,800 Speaker 1: to the effort. There is broad bypartisan interest in doing so, 160 00:10:25,880 --> 00:10:29,240 Speaker 1: and we're just getting started on the Well, Congressman, respectfully, 161 00:10:29,280 --> 00:10:32,640 Speaker 1: I would say, as uh, I think you can have. 162 00:10:33,160 --> 00:10:35,079 Speaker 1: I mean, the Aunt Becky story is crazy. This is 163 00:10:35,120 --> 00:10:38,040 Speaker 1: an important story. I'm glad we had John we but 164 00:10:38,320 --> 00:10:40,840 Speaker 1: that Aunt Becky story is insane. I want to thank 165 00:10:40,880 --> 00:10:43,800 Speaker 1: Congressman Jim Banks. I know you've got to run. Thank 166 00:10:43,800 --> 00:10:47,320 Speaker 1: you to Congressman Jim Banks, a Republican from Indiana. Coming up. 167 00:10:47,480 --> 00:10:51,319 Speaker 1: Kurt Barnella, political columnists for USA Today and NBC News 168 00:10:51,640 --> 00:10:56,400 Speaker 1: Think tank contributor, response to that interview, as does Brian Darling, 169 00:10:56,520 --> 00:11:01,000 Speaker 1: former senior communications director for Senator ramp Hall and founder 170 00:11:01,080 --> 00:11:05,840 Speaker 1: of Liberty Government Affairs. Remember download the sound on podcast 171 00:11:05,920 --> 00:11:09,559 Speaker 1: on Apple iTunes at Bloomberg dot Com or by downloading 172 00:11:09,559 --> 00:11:12,080 Speaker 1: the Bloomberg Business App. You can also check us out 173 00:11:12,360 --> 00:11:16,280 Speaker 1: on Radio dot com and I Heart Radio. I'm Kevin Crelli. 174 00:11:16,679 --> 00:11:24,319 Speaker 1: You're listening to Bloomberg. You're listening to Sound On with 175 00:11:24,400 --> 00:11:28,920 Speaker 1: Kevin Surreally on Bloomberg and one oh five point seven 176 00:11:29,000 --> 00:11:33,320 Speaker 1: F M h D two Baltimore. Have you been following 177 00:11:33,320 --> 00:11:36,440 Speaker 1: this amp Becky story. We were just talking about it 178 00:11:36,520 --> 00:11:40,400 Speaker 1: with Congressman Jim Banks, a Republican from Indiana. Today's all 179 00:11:40,440 --> 00:11:44,640 Speaker 1: about Aunt Becky and Boeing. We'll have much more on actually, folks, 180 00:11:44,679 --> 00:11:49,520 Speaker 1: the policy and political implications of Operation Varsity Blues as 181 00:11:49,559 --> 00:11:54,240 Speaker 1: it was called undercover internally at the agency that was 182 00:11:54,280 --> 00:11:59,120 Speaker 1: investigating this elite scam into college admission scandals. That has 183 00:11:59,559 --> 00:12:03,520 Speaker 1: really ricochet across the country and no doubt will be 184 00:12:03,559 --> 00:12:06,720 Speaker 1: a topic of conversation just a few short weeks away 185 00:12:06,760 --> 00:12:11,240 Speaker 1: from when ivy leaguers send out when whether their admissions 186 00:12:11,280 --> 00:12:14,000 Speaker 1: for for this fall's incoming class can make it up, 187 00:12:14,160 --> 00:12:18,679 Speaker 1: cannot make it. But Boeing really bowing, folks. It's all 188 00:12:18,720 --> 00:12:23,480 Speaker 1: about Boeing, which suffered a historic stock route in a 189 00:12:23,520 --> 00:12:28,520 Speaker 1: global uproar over the seven thirties seven Max. Uh. These 190 00:12:28,559 --> 00:12:33,040 Speaker 1: Boeing flights, these Bowing planes, two crashes in five months. 191 00:12:33,080 --> 00:12:38,160 Speaker 1: And it's a rebuke, an international rebuke, not just against 192 00:12:38,280 --> 00:12:42,560 Speaker 1: Bowing but against the United States Federal Aviation Administration, the 193 00:12:42,640 --> 00:12:45,560 Speaker 1: f a A. Because the f a A said that 194 00:12:45,640 --> 00:12:50,000 Speaker 1: these Bowing planes are safe to fly, but all around 195 00:12:50,040 --> 00:12:54,160 Speaker 1: the world. Uh, other countries said no, and they've grounded 196 00:12:54,200 --> 00:12:57,160 Speaker 1: these flights. And I'm grateful to have our all star 197 00:12:57,240 --> 00:12:59,560 Speaker 1: panel to to help us sort through all of this. 198 00:12:59,679 --> 00:13:04,720 Speaker 1: Brian Darling his former senior communications director to Senator Rand Paul, 199 00:13:05,040 --> 00:13:08,600 Speaker 1: the Republican from Kentucky. He's also the founder of Liberty 200 00:13:08,720 --> 00:13:13,280 Speaker 1: Government Affairs. Kurt Bardela is a political columnist USA Today 201 00:13:13,360 --> 00:13:18,880 Speaker 1: Board of contributors and NBC News Think contributor contributor. And 202 00:13:19,160 --> 00:13:22,760 Speaker 1: uh right, I'll start with you. I mean to see China, 203 00:13:22,920 --> 00:13:29,200 Speaker 1: the UK, Europe, Singapore, Malaysia, Australia, all of them banning 204 00:13:29,440 --> 00:13:33,160 Speaker 1: seven thirty seven Max flights. You've got the CEO of Boeing, 205 00:13:33,800 --> 00:13:38,520 Speaker 1: Mr Mielenberg, calling President Trump. You've got the Boeing lobbying 206 00:13:38,600 --> 00:13:41,640 Speaker 1: force out in full force on Capitol Hill. We heard 207 00:13:41,679 --> 00:13:46,640 Speaker 1: that earliear from uh from from Congressman Jim Banks, Republican 208 00:13:46,720 --> 00:13:50,439 Speaker 1: from Indiana. This is a This is a massive disaster 209 00:13:50,960 --> 00:13:54,880 Speaker 1: from a business standpoint, but more importantly from a consumer standpoint. No, 210 00:13:55,080 --> 00:13:58,160 Speaker 1: that's true. I mean the one thing that governments are 211 00:13:58,240 --> 00:14:01,040 Speaker 1: very good at doing is is reacting. I mean, this 212 00:14:01,120 --> 00:14:04,440 Speaker 1: is obviously a huge tragedy, a terrible thing that's happened. 213 00:14:05,080 --> 00:14:07,640 Speaker 1: But I flew. I flew. I was in Nashville this weekend, 214 00:14:07,640 --> 00:14:10,040 Speaker 1: and I flew in Southwest Airlines, and I'm sure I 215 00:14:10,080 --> 00:14:12,600 Speaker 1: was on a Boeing plane. This was two hours after 216 00:14:12,640 --> 00:14:15,240 Speaker 1: the crash, and I was confident I was gonna get there. 217 00:14:15,240 --> 00:14:17,720 Speaker 1: When you think about air travel, it's very very safe. 218 00:14:17,760 --> 00:14:20,480 Speaker 1: I mean air travel. We all have been on planes 219 00:14:20,520 --> 00:14:23,120 Speaker 1: over the past few months, and I don't think any 220 00:14:23,160 --> 00:14:25,400 Speaker 1: of us get really worried when you're getting a plane. 221 00:14:25,480 --> 00:14:27,320 Speaker 1: But the first thing that Bowing has to do is 222 00:14:27,320 --> 00:14:29,360 Speaker 1: figure out what happened. You know, what happened with these 223 00:14:29,400 --> 00:14:32,760 Speaker 1: planes solved the problem. But I just hope that the 224 00:14:33,000 --> 00:14:36,920 Speaker 1: our government doesn't overreact and start just grounding planes just 225 00:14:37,280 --> 00:14:41,480 Speaker 1: out of fear of the unknown. All right, Well, Senator 226 00:14:41,760 --> 00:14:44,440 Speaker 1: Mitt Romney disagrees with you, and I'm gonna play for 227 00:14:44,480 --> 00:14:46,080 Speaker 1: you what he had to say earlier today up on 228 00:14:46,120 --> 00:14:49,680 Speaker 1: Capitol Hill. Here's Senator Mitt Romney, Republican from Utah. Out 229 00:14:49,720 --> 00:14:52,840 Speaker 1: of an abundance of caution and frankly common sense, it 230 00:14:52,960 --> 00:14:55,640 Speaker 1: makes sense to ground aircraft. It's been involved into a 231 00:14:55,720 --> 00:15:01,440 Speaker 1: two very tragic accidents. That's it's outrageous. I mean, it's 232 00:15:01,440 --> 00:15:05,000 Speaker 1: an overreaction. It's typical. Think about what happened ter nine eleven. 233 00:15:05,040 --> 00:15:07,200 Speaker 1: We had a lot of talk after nine eleven about 234 00:15:07,200 --> 00:15:10,600 Speaker 1: the idea that we should have in a way to 235 00:15:10,880 --> 00:15:14,560 Speaker 1: remote control UH control airplanes if they get hijacked, to 236 00:15:15,000 --> 00:15:18,640 Speaker 1: solve the problem of hijackings. That was an overreaction of 237 00:15:18,680 --> 00:15:21,560 Speaker 1: an idea. This is an overreaction. People are flying and 238 00:15:21,600 --> 00:15:23,960 Speaker 1: bombing planes all over America right now as we speak, 239 00:15:24,000 --> 00:15:31,000 Speaker 1: and they're safe. Democratic UH columnist thinker, former Oversight Committee 240 00:15:31,040 --> 00:15:34,360 Speaker 1: spokesperson Congress where we investigate a lot of safety issues 241 00:15:34,400 --> 00:15:37,160 Speaker 1: like the BP oil spill, like when Toyota had the 242 00:15:37,160 --> 00:15:38,920 Speaker 1: issue with the sticky pedal on the break where we 243 00:15:38,960 --> 00:15:41,560 Speaker 1: hauled the CEO of Toyota National before our committee to 244 00:15:41,600 --> 00:15:46,000 Speaker 1: answer questions. I think that when something happens once you 245 00:15:46,040 --> 00:15:47,920 Speaker 1: can call it an accident with something. When something happens 246 00:15:47,920 --> 00:15:49,480 Speaker 1: twice in the span of six months, and no one 247 00:15:49,560 --> 00:15:52,600 Speaker 1: knows why. That's a broader problems ground the point it's 248 00:15:52,640 --> 00:15:54,680 Speaker 1: absolutely they should because you know what we're gonna say. 249 00:15:54,840 --> 00:15:57,120 Speaker 1: No one can say why this is happening. So until 250 00:15:57,120 --> 00:15:58,400 Speaker 1: you know the answer, how can deal with these people? 251 00:15:58,440 --> 00:16:00,120 Speaker 1: Know what I love about the show. I've got and 252 00:16:00,240 --> 00:16:02,960 Speaker 1: Darling disagreeing with Vitt Romney, and I've got Kurt Bardella 253 00:16:03,360 --> 00:16:05,360 Speaker 1: agreeing with Senator Mitt Romney. But I do want to 254 00:16:05,360 --> 00:16:08,320 Speaker 1: play for you Senator Richard Blumenthal, Democrat from Connecticut. Here 255 00:16:08,360 --> 00:16:11,000 Speaker 1: he is uh and I want to play what he 256 00:16:11,000 --> 00:16:13,480 Speaker 1: has to say about grounding of these flights. I am 257 00:16:13,480 --> 00:16:21,160 Speaker 1: writing American Airlines and Southwest demanding that they voluntarily ground 258 00:16:21,200 --> 00:16:25,240 Speaker 1: beef planes. They have a responsibility to passengers. But see, 259 00:16:25,240 --> 00:16:28,000 Speaker 1: I think we have to also bring up the issue 260 00:16:28,040 --> 00:16:31,120 Speaker 1: that as much as this is about boeing, the global 261 00:16:31,200 --> 00:16:33,720 Speaker 1: response is about the f a A. And and walk 262 00:16:33,800 --> 00:16:37,040 Speaker 1: me through that, Kurt, in terms of framing, Really, this 263 00:16:37,120 --> 00:16:41,560 Speaker 1: is a rebuke and international rebuke the same way that 264 00:16:41,600 --> 00:16:46,640 Speaker 1: the US has rebuked Huawei and zte for for legitimate 265 00:16:47,120 --> 00:16:50,520 Speaker 1: national security concerns. This is a rebuke on one of 266 00:16:50,560 --> 00:16:56,160 Speaker 1: America's most important, most influential international or businesses. Well, it 267 00:16:56,160 --> 00:16:58,720 Speaker 1: also speaks to the fit that of the many, many 268 00:16:58,760 --> 00:17:02,680 Speaker 1: people who died on this light, representing multiple countries, and 269 00:17:02,760 --> 00:17:04,480 Speaker 1: they're all saying we're not going to have these planes 270 00:17:04,520 --> 00:17:07,600 Speaker 1: fly right now. The only outlier, for reasons that no 271 00:17:07,640 --> 00:17:10,240 Speaker 1: one can really understand right now, is the United States 272 00:17:10,280 --> 00:17:12,919 Speaker 1: of America. That the the f A and President Trump 273 00:17:13,280 --> 00:17:16,399 Speaker 1: aren't ordering that these planes be grounded defies logic and 274 00:17:16,440 --> 00:17:19,280 Speaker 1: the entire global consensus that exists. How much would it cost? 275 00:17:19,840 --> 00:17:21,880 Speaker 1: I mean, that would be a huge cost. We don't 276 00:17:21,880 --> 00:17:23,920 Speaker 1: even know how many Boeing planes are flying right now 277 00:17:24,000 --> 00:17:26,080 Speaker 1: this second, but I bet there are a lot. You're 278 00:17:26,080 --> 00:17:28,639 Speaker 1: not talking about all bowing. We're talking about this specific model, 279 00:17:28,640 --> 00:17:32,080 Speaker 1: which I think there are like them. That's ad planes 280 00:17:32,119 --> 00:17:34,680 Speaker 1: you're taking out of service in worldwide. I mean, who knows. 281 00:17:34,720 --> 00:17:36,760 Speaker 1: I don't think you put a price people's lives, But 282 00:17:36,880 --> 00:17:39,360 Speaker 1: I don't know, and I don't think, and I think 283 00:17:39,400 --> 00:17:42,879 Speaker 1: everyone in this conversation it is truthfully, I mean, the 284 00:17:42,920 --> 00:17:46,320 Speaker 1: hundreds of folks that have lost their lives, it's horrible. 285 00:17:46,800 --> 00:17:50,000 Speaker 1: I mean I can't even imagine that. But this is 286 00:17:50,000 --> 00:17:51,840 Speaker 1: a rebuke on the f a A. And I want 287 00:17:51,840 --> 00:17:54,160 Speaker 1: to hammer home this point because when you have the 288 00:17:54,240 --> 00:17:57,760 Speaker 1: f a A saying that they have competence in Boeing, 289 00:17:57,800 --> 00:18:01,240 Speaker 1: and then you have China, the UK, the European Union 290 00:18:01,280 --> 00:18:08,320 Speaker 1: Aviation Safety Agency, Singapore, Malaysia, Australia all saying no, United States, 291 00:18:08,600 --> 00:18:11,720 Speaker 1: your f a A, your information, your intelligence coming out 292 00:18:11,720 --> 00:18:14,359 Speaker 1: of the f a A is wrong and correct. That is, 293 00:18:14,760 --> 00:18:18,199 Speaker 1: that is an international rebuke to again one of the 294 00:18:18,240 --> 00:18:22,639 Speaker 1: most important US companies and and it what's fascinating is that, 295 00:18:22,680 --> 00:18:26,119 Speaker 1: as we just heard from a Republican Senator Mitt Romney 296 00:18:26,160 --> 00:18:30,600 Speaker 1: and a Democrat Senator Richard Blumenthal, they're taking they're they're 297 00:18:30,640 --> 00:18:33,040 Speaker 1: opposing the f a A as well. Coming up, we're 298 00:18:33,040 --> 00:18:37,119 Speaker 1: gonna have I think they'll probably be some hearings about this. 299 00:18:37,760 --> 00:18:41,560 Speaker 1: I I get ready paging Boeing because yeah, they're gonna 300 00:18:41,560 --> 00:18:43,159 Speaker 1: have a lot to say about this. Coming up. We 301 00:18:43,200 --> 00:18:45,480 Speaker 1: talked more about Boeing, we talked more about a busy 302 00:18:45,560 --> 00:18:49,280 Speaker 1: day on Capitol Hill panel stays. And remember, folks, you 303 00:18:49,320 --> 00:18:53,439 Speaker 1: can download the sound on podcast on Apple iTunes, at 304 00:18:53,440 --> 00:18:56,520 Speaker 1: Bloomberg dot Com or the Bloomberg Business app. You can 305 00:18:56,560 --> 00:18:59,320 Speaker 1: also find myself as well. As all of my incredibly 306 00:18:59,359 --> 00:19:03,399 Speaker 1: talented working colleagues on radio dot com and I Heart Radio. 307 00:19:03,720 --> 00:19:10,560 Speaker 1: I'm Kevin CURRELLI you are listening to Bloomberg point one. 308 00:19:12,920 --> 00:19:15,720 Speaker 1: This is sound on. So people think they're gonna rush 309 00:19:15,760 --> 00:19:18,080 Speaker 1: your border, we just lock up that border so tight 310 00:19:18,200 --> 00:19:20,400 Speaker 1: nobody gets through. I mean I do try. I think 311 00:19:20,440 --> 00:19:22,959 Speaker 1: you try to. I've never seen such a beautiful turkey. 312 00:19:23,240 --> 00:19:27,080 Speaker 1: Always like to be truthful behind the tweet. N really 313 00:19:27,359 --> 00:19:32,159 Speaker 1: on Bloomberg and one oh seven f M h D two, Baltimore. 314 00:19:32,640 --> 00:19:35,400 Speaker 1: We haven't done this in a while behind the tweet, 315 00:19:35,560 --> 00:19:38,399 Speaker 1: but today is the day for it because President Trump 316 00:19:38,720 --> 00:19:42,280 Speaker 1: tweeting out about this bowing story. Boeing, by the way, 317 00:19:42,359 --> 00:19:48,000 Speaker 1: suffering a historic stock route following the global up floor 318 00:19:48,240 --> 00:19:53,240 Speaker 1: over its seven thirty seven Max. Internationally, folks are grounding 319 00:19:53,640 --> 00:19:58,560 Speaker 1: the Boeing seven thirty seven plane following the second deadly crash. 320 00:19:58,600 --> 00:20:00,639 Speaker 1: On March tent there was a rash in which a 321 00:20:00,720 --> 00:20:04,119 Speaker 1: hundred and fifty seven people lost their lives. This is 322 00:20:04,119 --> 00:20:07,920 Speaker 1: the second one in less than five months. After a 323 00:20:08,040 --> 00:20:11,040 Speaker 1: lion Air seven thirties seven Max eight plunged into the 324 00:20:11,119 --> 00:20:15,560 Speaker 1: Javasy off the coast of Indonesia. The President, tweeting out quote, 325 00:20:15,600 --> 00:20:19,680 Speaker 1: airplanes are becoming far too complex to fly. PLI it 326 00:20:19,960 --> 00:20:24,320 Speaker 1: pilots are no longer needed, but rather computer scientists from 327 00:20:24,520 --> 00:20:26,320 Speaker 1: M I T. I see it all the time in 328 00:20:26,359 --> 00:20:30,960 Speaker 1: many products, always seeking to go one unnecessary step further, 329 00:20:31,359 --> 00:20:35,480 Speaker 1: when often old and simpler is far better, split second 330 00:20:35,560 --> 00:20:40,840 Speaker 1: decisions are needed, and the complexity creates danger. All of 331 00:20:40,880 --> 00:20:43,400 Speaker 1: this for great cost yet very little gain. I don't 332 00:20:43,400 --> 00:20:46,040 Speaker 1: know about you, but I don't want Albert Einstein to 333 00:20:46,160 --> 00:20:49,439 Speaker 1: be my pilot. I want great flying professionals that are 334 00:20:49,440 --> 00:20:53,760 Speaker 1: allowed to easily and quickly take control of a plane. 335 00:20:54,280 --> 00:20:55,879 Speaker 1: I'm not really sure, but to make it that sweet 336 00:20:55,920 --> 00:20:58,000 Speaker 1: to be, to be not even trying to be funny, 337 00:20:58,000 --> 00:20:59,919 Speaker 1: I truthfully don't really know what to make of it. 338 00:21:00,760 --> 00:21:05,400 Speaker 1: But maybe Brian Darling, who is a former senior communications 339 00:21:05,400 --> 00:21:09,040 Speaker 1: director for Senator Rampaul and founder of Liberty Government Affairs 340 00:21:09,080 --> 00:21:12,840 Speaker 1: does or maybe Kurt Bardella, a political columnist for USA 341 00:21:12,960 --> 00:21:15,560 Speaker 1: Today as well as for NBC News, think He's also 342 00:21:15,720 --> 00:21:20,760 Speaker 1: the former spokesperson and senior advisor for the House Oversight 343 00:21:20,920 --> 00:21:25,159 Speaker 1: and Government Reform Committee back when it was Republican control, 344 00:21:25,200 --> 00:21:28,000 Speaker 1: though now he is a Democrat. Okay, Brian. Let me 345 00:21:28,000 --> 00:21:30,680 Speaker 1: start with you that sweet I mean, what what why 346 00:21:30,760 --> 00:21:32,879 Speaker 1: is the president tweeting that? Let me try interpret that. 347 00:21:34,000 --> 00:21:35,879 Speaker 1: First of all, I don't want Albert Einstein flying my 348 00:21:35,960 --> 00:21:38,920 Speaker 1: plane either, but I think technically wouldn't mind. He seems 349 00:21:38,920 --> 00:21:41,600 Speaker 1: like a sweet guy. I don't know if he knows 350 00:21:41,600 --> 00:21:44,080 Speaker 1: how to fly planes, but I guess my my point 351 00:21:44,119 --> 00:21:46,280 Speaker 1: would be is I think what he's responding to is 352 00:21:46,320 --> 00:21:48,400 Speaker 1: what has been out in the news media that there 353 00:21:48,440 --> 00:21:50,679 Speaker 1: may have been a problem with some new technology that 354 00:21:50,760 --> 00:21:52,840 Speaker 1: was put in one of these planes. I mean, nobody 355 00:21:52,880 --> 00:21:56,159 Speaker 1: knows what happened, but the theory is that some technologies 356 00:21:56,200 --> 00:21:59,040 Speaker 1: is putting the plane to level it out that isn't 357 00:21:59,040 --> 00:22:00,960 Speaker 1: working and may have is a crash. Alright, But like 358 00:22:01,040 --> 00:22:03,080 Speaker 1: moving on, I mean the fact that he's sticking up. 359 00:22:03,119 --> 00:22:05,480 Speaker 1: I mean the fact that he's Boeing. I mean the president. 360 00:22:05,520 --> 00:22:08,679 Speaker 1: I remember when he gave a speech, uh it was 361 00:22:08,720 --> 00:22:11,440 Speaker 1: like his first year in office, and he said direct quote, 362 00:22:11,720 --> 00:22:14,240 Speaker 1: I love Boeing. I mean, this is the president who 363 00:22:14,240 --> 00:22:18,400 Speaker 1: has really taken pride in Boeing uh and and how 364 00:22:18,440 --> 00:22:20,840 Speaker 1: influential it is for for the U. S. Economy. Well, 365 00:22:20,880 --> 00:22:22,520 Speaker 1: I mean he likes bowing enough that he put one 366 00:22:22,560 --> 00:22:25,880 Speaker 1: of their executives over his acting uh Secretary of Defense. 367 00:22:25,920 --> 00:22:28,440 Speaker 1: So yes, I mean, but Boeing, I mean, Boeing does 368 00:22:28,480 --> 00:22:30,840 Speaker 1: a lot of government contracting, and I mean most of 369 00:22:30,840 --> 00:22:32,879 Speaker 1: the planes are doing great right now. I mean, it 370 00:22:32,920 --> 00:22:35,000 Speaker 1: really is a situation where we need to take a 371 00:22:35,040 --> 00:22:37,960 Speaker 1: deep breath and don't overreact to the situation. And it's 372 00:22:37,960 --> 00:22:41,080 Speaker 1: not just Republicans who have a relationship with Boeing. Boeing 373 00:22:41,240 --> 00:22:45,040 Speaker 1: is one of the most important US institutions in terms 374 00:22:45,040 --> 00:22:48,520 Speaker 1: of in terms of businesses in the world. Democrats and 375 00:22:48,600 --> 00:22:53,560 Speaker 1: Republicans for forever have had a strong relationship with Boeing. Yeah, 376 00:22:53,600 --> 00:22:55,480 Speaker 1: I think about Lackey and Martin Boeing. I mean, those 377 00:22:55,480 --> 00:22:58,040 Speaker 1: are the big companies that are putting the planes in 378 00:22:58,040 --> 00:23:00,280 Speaker 1: the air right now, and they're big American company. But 379 00:23:00,400 --> 00:23:03,760 Speaker 1: it's gonna be tough for executives, I mean srudely, no 380 00:23:03,880 --> 00:23:06,960 Speaker 1: laughing matter. I mean the they're gonna face that. We 381 00:23:07,119 --> 00:23:09,840 Speaker 1: heard it earlier in the show. Lawmakers on both sides 382 00:23:09,880 --> 00:23:12,320 Speaker 1: of the aisle wanting to get to the bottom of this. You, 383 00:23:12,960 --> 00:23:16,800 Speaker 1: Kurt Bardella, having worked behind the scenes, take away the 384 00:23:16,840 --> 00:23:20,480 Speaker 1: political Republican Democrat cap for a second. Take us behind 385 00:23:20,520 --> 00:23:23,080 Speaker 1: the scenes in terms of the preparation that is being 386 00:23:23,119 --> 00:23:26,919 Speaker 1: done as we speak on the staff level and the 387 00:23:26,960 --> 00:23:31,760 Speaker 1: interactions between executives at corporations level. When it's a big 388 00:23:31,840 --> 00:23:35,280 Speaker 1: name CEO like Muhlenberg has to go and testify on 389 00:23:35,400 --> 00:23:38,159 Speaker 1: Capitol Hill, what would happen? You have to imagine that, 390 00:23:38,200 --> 00:23:41,840 Speaker 1: without question, there's going to be oversight hearings looking at 391 00:23:42,160 --> 00:23:45,480 Speaker 1: what went wrong, what can be this schools publicly about 392 00:23:45,600 --> 00:23:48,439 Speaker 1: how it's now fixed, looking at the relationship between the 393 00:23:48,520 --> 00:23:51,280 Speaker 1: f A that this is making process to continue to 394 00:23:51,320 --> 00:23:53,520 Speaker 1: allow these planes to fly. So there's gonna be a 395 00:23:53,560 --> 00:23:54,879 Speaker 1: lot of people. They are gonna get a lot of 396 00:23:54,960 --> 00:23:58,199 Speaker 1: questions and and for the CEO of following, he is 397 00:23:58,280 --> 00:24:00,639 Speaker 1: absolutely gonna be called to testify before of the committee 398 00:24:00,840 --> 00:24:02,960 Speaker 1: and have to answer for what the what what they're 399 00:24:02,960 --> 00:24:05,640 Speaker 1: doing right now in real time. That's what's gonna be scrutinized. 400 00:24:05,720 --> 00:24:08,720 Speaker 1: My number of the day six point one percent. Six 401 00:24:08,760 --> 00:24:13,160 Speaker 1: point one percent, that is the percent that Boeing fell today. 402 00:24:13,600 --> 00:24:18,800 Speaker 1: Uh Their stock closed at three hundred and seventy five cents, 403 00:24:18,840 --> 00:24:22,639 Speaker 1: bringing the two day drop to eleven percent. The company 404 00:24:22,680 --> 00:24:26,640 Speaker 1: has lost almost twenty seven billion in market value this week. 405 00:24:26,720 --> 00:24:29,520 Speaker 1: Coming up, it was a rough day for the ce 406 00:24:29,640 --> 00:24:33,359 Speaker 1: for the CEO of another big financial institution, Tim Sloan, 407 00:24:33,480 --> 00:24:36,719 Speaker 1: the CEO of Wells Fargo. The panel reacts to another 408 00:24:36,760 --> 00:24:41,440 Speaker 1: contentious hearing for House Financial Services Committee Chairwoman Maxine Waters, 409 00:24:41,720 --> 00:24:45,359 Speaker 1: but Republicans and Democrats all agreed. The latest on that 410 00:24:45,440 --> 00:24:48,200 Speaker 1: coming up, plus and Becky and what it means for 411 00:24:48,400 --> 00:24:52,840 Speaker 1: policy and politics. That's scandal brewing. Remember, folks. You can 412 00:24:52,920 --> 00:24:57,160 Speaker 1: download the Sound On podcast on Apple iTunes, at Bloomberg 413 00:24:57,200 --> 00:25:00,320 Speaker 1: dot com, or by downloading the Bloomberg Business A. Kirk 414 00:25:00,359 --> 00:25:03,480 Speaker 1: Bardelli says he's downloading the Bloomberg Business app after today's show. 415 00:25:03,800 --> 00:25:06,439 Speaker 1: You can also find us on Radio dot com and 416 00:25:06,560 --> 00:25:09,800 Speaker 1: I Heart Radio. I'm Kevin Serelli. You are listening to 417 00:25:09,840 --> 00:25:17,280 Speaker 1: Bloomberg point one. This is Sound On with Kevin si 418 00:25:17,359 --> 00:25:21,359 Speaker 1: Relate on Bloomberg one and one oh five point seven 419 00:25:21,400 --> 00:25:24,920 Speaker 1: of m h D two Baltimore. I'm Kevin Serelli, Bloomberg 420 00:25:24,880 --> 00:25:28,840 Speaker 1: News Chief Washington, correspondent for Bloomberg Television and Bloomberg Radio. 421 00:25:28,920 --> 00:25:32,320 Speaker 1: The big story today, no laughing matter, folks. It's Boeing 422 00:25:32,800 --> 00:25:38,600 Speaker 1: Boeing facing international rebuke. Uh this despite the Federal Aviation Administration, 423 00:25:38,720 --> 00:25:41,879 Speaker 1: the f a a's competence in them in terms of 424 00:25:42,680 --> 00:25:45,960 Speaker 1: their decision to have confidence in the Boeing UH seven 425 00:25:46,040 --> 00:25:50,760 Speaker 1: thirty seven Max. Now, the international community has said that 426 00:25:50,800 --> 00:25:55,200 Speaker 1: they want to see that particular plane be grounded. And meanwhile, 427 00:25:55,440 --> 00:25:59,159 Speaker 1: Senator Richard bloom Enthal, Democrat from Connecticut, as well as 428 00:25:59,200 --> 00:26:03,040 Speaker 1: Senator Rob me Of Republican from Utah also calling for 429 00:26:03,160 --> 00:26:07,919 Speaker 1: this particular UH, the Boeing seven thirty seven Max eight aircraft, 430 00:26:08,080 --> 00:26:13,280 Speaker 1: this particular aircraft to be grounded. It has UH really 431 00:26:13,280 --> 00:26:16,480 Speaker 1: been the dominant story and placed bowing in an international 432 00:26:17,080 --> 00:26:21,879 Speaker 1: tumult scandal. Um as this continues, the second crash of 433 00:26:21,920 --> 00:26:25,360 Speaker 1: these Boeing seven thirty seven Max eight aircraft and as 434 00:26:25,400 --> 00:26:28,560 Speaker 1: little as five months. It wasn't just Bowing though, and 435 00:26:28,600 --> 00:26:31,680 Speaker 1: the political cross hairs today. It was also Wells Fargo 436 00:26:31,920 --> 00:26:37,080 Speaker 1: Tim Sloan, CEO of Wells Fargo, testifying before a contentious 437 00:26:37,080 --> 00:26:41,320 Speaker 1: House Financial Services Committee hearing, chaired of course by Congresswoman 438 00:26:41,640 --> 00:26:47,000 Speaker 1: Maxine Waters, a progressive Democrat from California, but Tim Sloan 439 00:26:47,160 --> 00:26:51,480 Speaker 1: also faced criticism from Republicans. Here to help break us 440 00:26:51,600 --> 00:26:56,439 Speaker 1: break it down for us is Kirk Bardela. He is 441 00:26:57,200 --> 00:27:01,200 Speaker 1: the former spokesperson and see your advisor for the House 442 00:27:01,280 --> 00:27:05,159 Speaker 1: Oversight Committee. UH. He's now a Democrat, used to be 443 00:27:05,240 --> 00:27:08,440 Speaker 1: a Republican. He's also the publisher of the country music 444 00:27:08,480 --> 00:27:11,280 Speaker 1: email tip sheet The Morning Hangover. He's a big country 445 00:27:11,359 --> 00:27:15,199 Speaker 1: music fan. And Brian Darling is former senior communications director 446 00:27:15,359 --> 00:27:19,800 Speaker 1: for Senator Rampaul and the founder of Liberty Government Affairs. 447 00:27:19,840 --> 00:27:22,760 Speaker 1: I was struck, Kurt, and you just given your your 448 00:27:22,800 --> 00:27:25,720 Speaker 1: background as a former advisor on in these type of 449 00:27:25,720 --> 00:27:28,960 Speaker 1: hearings where ceo s are called in dragged him sometimes 450 00:27:29,200 --> 00:27:32,879 Speaker 1: to testify publicly. There was I mean, we kind of 451 00:27:32,920 --> 00:27:37,600 Speaker 1: expected it from Democrats to be quite frank, but you know, 452 00:27:37,640 --> 00:27:40,720 Speaker 1: Republicans have really taken it to Wells Fargo as well. 453 00:27:40,800 --> 00:27:45,000 Speaker 1: And Congressman McHenry, a Republican. He there was an exchange 454 00:27:45,040 --> 00:27:47,880 Speaker 1: between him and Tim Solon where he said, can we 455 00:27:47,960 --> 00:27:53,800 Speaker 1: expect that the scandals of improper use and improper accounts 456 00:27:54,359 --> 00:27:57,800 Speaker 1: from UH a few years ago? When Tim Solan, by 457 00:27:57,800 --> 00:28:01,000 Speaker 1: the way, wasn't even CEO will that this will end? 458 00:28:01,440 --> 00:28:04,919 Speaker 1: And Tim Sloan, the CEO of Wells Fargo's response was, 459 00:28:05,560 --> 00:28:10,200 Speaker 1: I can't control the media. I don't know who's preparing 460 00:28:10,600 --> 00:28:13,359 Speaker 1: Tim Sloan and Wells Fargo for this, for this hearing, 461 00:28:13,600 --> 00:28:16,400 Speaker 1: they should all be fired right now, because you know, 462 00:28:16,600 --> 00:28:18,680 Speaker 1: it's not like you don't know what questions are coming. 463 00:28:18,680 --> 00:28:20,679 Speaker 1: When you get called before Congress and then hearing like this, 464 00:28:20,880 --> 00:28:24,640 Speaker 1: it sounds like you don't know what contentious, controversial things 465 00:28:24,680 --> 00:28:26,760 Speaker 1: are going to be raised. And you know this well 466 00:28:26,800 --> 00:28:28,639 Speaker 1: in advance. So to come to a hearing like this, 467 00:28:29,200 --> 00:28:32,800 Speaker 1: I'm prepared to really satisfactory give answers, and to a 468 00:28:32,800 --> 00:28:35,439 Speaker 1: point where even the Republicans on the committee, who are 469 00:28:35,520 --> 00:28:38,040 Speaker 1: who are They're trying to help you get through this hearing, 470 00:28:38,640 --> 00:28:41,200 Speaker 1: they end up turning on you and they aren't satisfied 471 00:28:41,240 --> 00:28:45,080 Speaker 1: with your answer. It becomes a bipartisan rebuke. That is extraordinary. 472 00:28:45,120 --> 00:28:47,000 Speaker 1: I was struck by this because just the other week 473 00:28:47,040 --> 00:28:51,000 Speaker 1: when I when I interviewed Senator Carper, a Democrat from 474 00:28:51,080 --> 00:28:54,680 Speaker 1: uh uh from Delaware, he he was he expressed that 475 00:28:54,680 --> 00:28:57,440 Speaker 1: that Wells Fargo might be turning the corner. Wells Fargo 476 00:28:57,480 --> 00:29:01,160 Speaker 1: has has argued that they are turning the corner, that 477 00:29:01,200 --> 00:29:05,640 Speaker 1: they are trying to transform. Transformation is the word by 478 00:29:05,640 --> 00:29:07,600 Speaker 1: that they keep using and by addressing some of the 479 00:29:07,680 --> 00:29:13,840 Speaker 1: root causes of that October UH scandal. And you know, 480 00:29:13,960 --> 00:29:16,120 Speaker 1: but there was another moment that this hearing today, when 481 00:29:16,160 --> 00:29:20,680 Speaker 1: Congressman Gregory Meeks, a Democrat from New York, asked if 482 00:29:21,160 --> 00:29:24,160 Speaker 1: Tim Sloan, the CEO of Wells Fargo, agreed in the 483 00:29:24,240 --> 00:29:27,360 Speaker 1: Office of the Control Controller and the Currency the o 484 00:29:27,480 --> 00:29:31,520 Speaker 1: c C they downgraded Wells Fargo and and UH because 485 00:29:31,560 --> 00:29:33,800 Speaker 1: they said that they needed to improve their compliance record. 486 00:29:34,200 --> 00:29:37,880 Speaker 1: I mean, it was again a question that you would 487 00:29:37,920 --> 00:29:42,080 Speaker 1: expect would be asked UH, and Tim Sloan's response was 488 00:29:42,120 --> 00:29:46,960 Speaker 1: that he does not feel that Wells Fargo deserved that downgrade, 489 00:29:47,440 --> 00:29:51,600 Speaker 1: and Congressman Meek's response was direct quote, they don't get it. 490 00:29:51,920 --> 00:29:55,400 Speaker 1: And then the chairwoman, Maxine Waters said, they don't get it. 491 00:29:55,960 --> 00:29:59,120 Speaker 1: I mean, Brian Darling, I mean you you know, I 492 00:29:59,120 --> 00:30:02,920 Speaker 1: mean I this was a brutal hearing for a while. Seriously, 493 00:30:03,080 --> 00:30:05,080 Speaker 1: if you go into a hearing like that, your goal 494 00:30:05,320 --> 00:30:08,480 Speaker 1: is not to educate the committee on what you think 495 00:30:08,960 --> 00:30:11,760 Speaker 1: you know they are getting wrong. You're supposed to answer 496 00:30:11,840 --> 00:30:15,000 Speaker 1: questions and give them some confidence that you're actually remedying 497 00:30:15,040 --> 00:30:17,520 Speaker 1: the problems of a company. And they clearly didn't get 498 00:30:17,560 --> 00:30:19,600 Speaker 1: that done. All right, So meanwhile, while that hearing was 499 00:30:19,640 --> 00:30:23,080 Speaker 1: going on across the Chamber and the Senate before the 500 00:30:23,080 --> 00:30:27,200 Speaker 1: Senate Judiciary Committee or Senate Finance Committee. I apologize to 501 00:30:27,240 --> 00:30:32,160 Speaker 1: Senate Finance Committee UH US Trade Representative Bob Lightheiser testifying, 502 00:30:32,200 --> 00:30:34,280 Speaker 1: and I want to bring our audience up to speed 503 00:30:34,280 --> 00:30:37,960 Speaker 1: on what he had to say, because he just casted 504 00:30:38,040 --> 00:30:41,240 Speaker 1: some doubt on Here's the headline from the New York Times. 505 00:30:41,320 --> 00:30:44,840 Speaker 1: Lightheiser cast out on China trade talks as major issues 506 00:30:44,880 --> 00:30:50,520 Speaker 1: go unresolved. So that's uncertainty in that front. It's unclear 507 00:30:50,520 --> 00:30:53,560 Speaker 1: whether or not President She of China and President Trump 508 00:30:53,560 --> 00:30:56,960 Speaker 1: will have that marl Lago summit later on, but we're 509 00:30:57,400 --> 00:31:00,920 Speaker 1: obviously closely keeping tabs on that. So in between hits 510 00:31:00,920 --> 00:31:03,080 Speaker 1: today up on Capitol Hill, I was, I'm following the 511 00:31:03,160 --> 00:31:06,280 Speaker 1: Lighthouser hearing, following Wells, and I go down and meanwhile, 512 00:31:06,360 --> 00:31:10,840 Speaker 1: Aunt Becky's like totally erupting on Twitter. And I go down, 513 00:31:11,120 --> 00:31:14,240 Speaker 1: Uh two cups and and dirks in and between Russell 514 00:31:14,320 --> 00:31:18,320 Speaker 1: and Russell on the Senate side to goad Cups, and 515 00:31:18,720 --> 00:31:21,840 Speaker 1: I see Senator Romney and he's getting trailed by like 516 00:31:21,920 --> 00:31:25,200 Speaker 1: this like one camera and and I'm like, oh, maybe 517 00:31:25,240 --> 00:31:27,760 Speaker 1: they're asking about trade. Maybe they're asking him about blowing No, 518 00:31:27,840 --> 00:31:30,720 Speaker 1: they're asking him about blowing out birthday candles. Uh. And 519 00:31:30,760 --> 00:31:33,240 Speaker 1: if you solve this viral moment today where he like 520 00:31:33,360 --> 00:31:36,080 Speaker 1: blew out one candle at a time for his birthday. 521 00:31:36,080 --> 00:31:38,800 Speaker 1: Happy birthday by the way, belated birthday, I don't know. Uh. 522 00:31:38,880 --> 00:31:42,600 Speaker 1: And he said that he was making a wish with 523 00:31:42,720 --> 00:31:45,920 Speaker 1: every single candle. So I just wanted to add that color. 524 00:31:46,080 --> 00:31:48,920 Speaker 1: And what was a very busy day. My life is 525 00:31:48,960 --> 00:31:52,480 Speaker 1: weird sometimes folks up on up on Capitol Hill. And 526 00:31:52,520 --> 00:31:55,440 Speaker 1: then I do wanna okay, I said we were going 527 00:31:55,480 --> 00:31:57,400 Speaker 1: to get into Aunt Becky because this is a crazy 528 00:31:57,440 --> 00:31:59,800 Speaker 1: story we can laugh about LORI lack, I mean, and 529 00:32:00,040 --> 00:32:01,640 Speaker 1: non people are having their fund with it. But it 530 00:32:01,680 --> 00:32:05,280 Speaker 1: really is an illustration of a prep school culture gone 531 00:32:05,360 --> 00:32:09,720 Speaker 1: a muck, where people think that they can purchase access 532 00:32:09,760 --> 00:32:13,600 Speaker 1: into the higher education system. And think about, as my 533 00:32:13,640 --> 00:32:16,760 Speaker 1: friend gretav Ancester and tweeted earlier today, think of the 534 00:32:16,920 --> 00:32:21,400 Speaker 1: kids who didn't get into school as a result of 535 00:32:21,440 --> 00:32:27,240 Speaker 1: these elites. Uh. This story is is baffling. It's uh. 536 00:32:27,360 --> 00:32:30,080 Speaker 1: But Kelly and Conway, folks, she found a way into it. 537 00:32:30,320 --> 00:32:35,040 Speaker 1: She tweeted, out at Lorie Laughlin and Felicity Huffman indicted 538 00:32:35,080 --> 00:32:39,600 Speaker 1: for lying and buying spots in college. They are worried 539 00:32:39,640 --> 00:32:45,320 Speaker 1: their daughters are as stupid as their mother's. That was 540 00:32:45,400 --> 00:32:50,880 Speaker 1: Kelly and Conway. That is a burn thoughts. Well, we 541 00:32:50,960 --> 00:32:53,719 Speaker 1: know that this has been going on since, you know, 542 00:32:53,960 --> 00:32:56,840 Speaker 1: since colleges started, people getting in because their you know, 543 00:32:56,960 --> 00:33:00,000 Speaker 1: dad went there, or they had friends. I mean this happened, 544 00:33:00,120 --> 00:33:03,000 Speaker 1: but not organized like this and not are yeah, not 545 00:33:03,200 --> 00:33:05,440 Speaker 1: people paying all this money. I don't know if you caught. 546 00:33:05,480 --> 00:33:08,040 Speaker 1: One of the interesting parts of the story was that, um, 547 00:33:08,120 --> 00:33:11,240 Speaker 1: some of the they actually would take kids pictures and 548 00:33:11,280 --> 00:33:18,920 Speaker 1: put their heads on like athletes and scholarships. Yes, yeah, 549 00:33:18,960 --> 00:33:21,479 Speaker 1: and they couldn't be good enough to to you know, 550 00:33:21,720 --> 00:33:23,640 Speaker 1: make too many too much noise, but they had to 551 00:33:23,720 --> 00:33:26,600 Speaker 1: like sneak in somehow through the athletic program. That is 552 00:33:26,720 --> 00:33:28,920 Speaker 1: very creative, Kirk. I mean there's actual there could be 553 00:33:28,960 --> 00:33:31,400 Speaker 1: hearings on this. There should be, because I mean, you 554 00:33:31,400 --> 00:33:34,120 Speaker 1: have there's fraud. This is this is legitimately fraud. You 555 00:33:34,160 --> 00:33:38,400 Speaker 1: have people manufacturing credentials that weren't real to get into school. 556 00:33:38,800 --> 00:33:40,920 Speaker 1: And and as you said that the human cost of this, 557 00:33:41,240 --> 00:33:43,000 Speaker 1: that spot could have gone to someone else who actually 558 00:33:43,040 --> 00:33:45,360 Speaker 1: deserved it. But see, but see of all of the 559 00:33:45,440 --> 00:33:49,000 Speaker 1: pressure that has placed some of it rightfully so, on 560 00:33:49,160 --> 00:33:54,080 Speaker 1: large financial institutions, on large corporations, where is the spotlight 561 00:33:54,200 --> 00:33:57,560 Speaker 1: on higher education? This really could be the tip of 562 00:33:57,560 --> 00:34:01,400 Speaker 1: the iceberg, quite frankly, and I I think we heard 563 00:34:01,400 --> 00:34:03,480 Speaker 1: about this from Congressman Jim Banks at the start of 564 00:34:03,520 --> 00:34:06,640 Speaker 1: the show, a Republican from Indiana, who said, you know, 565 00:34:07,240 --> 00:34:12,719 Speaker 1: foreign students coming here learning. There's a lot of scrutiny 566 00:34:12,719 --> 00:34:15,040 Speaker 1: in terms of foreign influence, whether it's China, whether it's 567 00:34:15,040 --> 00:34:18,160 Speaker 1: we hear about Russia. But I think higher education is 568 00:34:18,200 --> 00:34:23,000 Speaker 1: in for a in for some some microscope. Coming up tomorrow, 569 00:34:23,040 --> 00:34:25,879 Speaker 1: we have the founding investor of Blue Apron. You don't 570 00:34:25,920 --> 00:34:28,200 Speaker 1: want to miss this. You guys know him, the foodie. Uh. 571 00:34:28,239 --> 00:34:31,160 Speaker 1: We're gonna talk trade policy with the founder of Blue 572 00:34:31,160 --> 00:34:34,000 Speaker 1: Apron as well as the Green New Deal. I want 573 00:34:34,000 --> 00:34:36,160 Speaker 1: to thank Kurt Bardela. I want to thank Brian Darling, 574 00:34:36,400 --> 00:34:39,839 Speaker 1: both friends of the program and appreciate their insights as 575 00:34:39,880 --> 00:34:42,879 Speaker 1: we we covered it all today. Folks check us out 576 00:34:42,920 --> 00:34:45,919 Speaker 1: on iTunes as well as with our partners. Uh. That's 577 00:34:45,920 --> 00:34:48,560 Speaker 1: it for me. I'm Kevin CURRELLI. You're listening to Bloomberg.