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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

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Speaker 1: noon Eastern on Applecarplay and Enrounoto with the Bloomberg Business app.

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Speaker 1: Listen on demand wherever you get your podcasts, or watch

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Speaker 1: us live on YouTube.

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Speaker 2: The mission with has been laid out for the incoming

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Speaker 2: presuming she's confirmed Secretary of Education Linda McMahon, and it

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Speaker 2: has nothing to do with wrestling. His promise, of course,

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Speaker 2: to dismantle the department, to get rid of the Department

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Speaker 2: of Education and quote unquote send it back to the

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Speaker 2: States is something that we want to explore with someone

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Speaker 2: who has run the department. As always, we try to

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Speaker 2: bring you practitioners, people with experience, voices of experience here

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Speaker 2: on Bloomberg, which is why we're glad to have Arnie

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Speaker 2: Duncan with us today.

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Speaker 3: He was the US Secretary of Education in the Obama administration.

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Speaker 2: He's now managing partner at Emerson Collective, and mister Secretary,

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Speaker 2: is great to have you back on Bloomberg. I appreciate

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Speaker 2: the time, and I'm glad to have a couple of

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Speaker 2: moments with you because we do have some questions, and

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Speaker 2: it's clear to us that most Americans don't really have

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Speaker 2: a great sense of what the Department of Education does.

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Speaker 2: So if it were in fact remove or quote unquote

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Speaker 2: sent back to the States, what would families, what would

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Speaker 2: students lose?

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Speaker 4: Well, first of all, I think it's almost impossible that

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Speaker 4: he's going to eliminate the Department of Education. I honestly

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Speaker 4: think that's just another empty campaign promise. And the fact,

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Speaker 4: as you know, that the vast majority of funding kid

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Speaker 4: to twelve actually comes from the States and locally in

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Speaker 4: local our communities and districts. So send it back to

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Speaker 4: the States. That's where the action already is. But your

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Speaker 4: questions are good. One, what does the department actually do?

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Speaker 4: And I'll give you a couple of examples. It works very,

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Speaker 4: very hard to make sure you know, hundreds of thousands,

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Speaker 4: millions of young children have access to high quality pre

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Speaker 4: K and getting our babies off to a great starter

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Speaker 4: is arguably the most important thing we can do. On

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Speaker 4: the CAD to twelve side. Lots of funding for children

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Speaker 4: with special needs, children with disabilities, that's desperately important, seven

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Speaker 4: point five million children. Lots of funding for children who

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Speaker 4: live below the poverty line at the higher education side

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Speaker 4: obviously does a tremendous amount to make college more accessible

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Speaker 4: and more affordable. So sort of whether it's from babies too,

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Speaker 4: you know, folks in college. Department of Education plays a

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Speaker 4: critical role, and to remove opportunity from children from families

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Speaker 4: obviously makes no sense to me. Whatsoever.

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Speaker 2: What would it mean for funding for disabled students?

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Speaker 4: Secretary, Well, it's you know, against seven point five million

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Speaker 4: children with disabilities, and last time I checked, those are

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Speaker 4: children whose families some vote Democratics, some vote Republican. It

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Speaker 4: just doesn't matter. And to see that funding disappear. To

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Speaker 4: make sure that children now have access to a free

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Speaker 4: and fair public education. That did not used to be

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Speaker 4: the case. Many local districts used to discriminate and keep

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Speaker 4: children with disabilities out of their public schools. It took

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Speaker 4: the federal Department of Education and took the an invention

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Speaker 4: at the federal level to make sure children had that access.

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Speaker 4: To take that away, that's not going to fly with parents.

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Speaker 4: That's not hurt children or hurt families. Honestly, it hurt

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Speaker 4: their publican party. So you know, my best advice to

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Speaker 4: them would be to not even think about doing anything

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Speaker 4: to hurt our most vulnerable children, whether the children with disabilities,

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Speaker 4: children special needs, children who live below the pobby line.

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Speaker 4: Those are the kids that need the best education we

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Speaker 4: can revive them. They don't need something less than that.

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Speaker 2: Mister Secretary, I hate to interrupt you, but we have

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Speaker 2: some breaking news that I need to mention.

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Speaker 3: I'd love for you to just stand by for.

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Speaker 2: One moment as I tell you and our audience that

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Speaker 2: we have news on the former Congressman Matt Gates, who

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Speaker 2: is apparently withdrawing his name from consideration to be the

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Speaker 2: next Attorney General. Matt Gates on the ex profile, I

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Speaker 2: had excellent meetings with senators yesterday, He writes that he

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Speaker 2: appreciates their thoughtful feedback incredible support. While the momentum was strong,

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Speaker 2: it is clear, Matt Gates writes, quote my confirmation was

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Speaker 2: unfairly becoming a distraction to the critical work of the

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Speaker 2: Trump vance transition. He says there's no time to waste

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Speaker 2: on a needlessly protracted Washington's scuffle. Therefore withdrawing my name

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Speaker 2: from consideration to serve as Attorney General. He says Trump's

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Speaker 2: DOJ must be in place and ready on day one

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Speaker 2: at twelve, twenty seven pm Eastern Time. Matt Gates, the

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Speaker 2: former congressman he resigned his seat for this opportunity, is

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Speaker 2: no longer in the running to be the attorney general.

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Speaker 2: We're gonna have a lot more on this with our

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Speaker 2: political panel, Rick Davis and G. D. Shanzano, or with

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Speaker 2: us coming up here as we spend time with Arnie Duncan,

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Speaker 2: the former Secretary of Education. You can weigh in on that.

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Speaker 2: By the way, Arnie, I don't know if you choose to,

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Speaker 2: but you've been through the confirmation process and there's been

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Speaker 2: a lot of questions about some of the names that

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Speaker 2: have been brought forth. Does this tell you anything about

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Speaker 2: the senators who are going to make the decision have

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Speaker 2: been actually considering their next move here to see Matt

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Speaker 2: Gates drop out this quickly, Well.

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Speaker 4: That obviously had to happen, and unfortunately he and frankly

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Speaker 4: so many other potential cabinet nominees by President Trump on

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Speaker 4: one commonality. One common theme is that many of them

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Speaker 4: have allegations of sexual abuse and being sexual predators. And

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Speaker 4: for me, it's just mind boggling. It's stunning that folks

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Speaker 4: of this character or lack thereof are being considered a

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Speaker 4: cabinet post, so that was the right thing to do.

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Speaker 4: He didn't. He never had a chance. And hopefully again

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Speaker 4: maybe they'll pick somebody worse. And you don't know what's

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Speaker 4: going to happen here, but to have someone who has

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Speaker 4: broken so many laws that just preyed upon young girls

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Speaker 4: having him somehow be the Attorney General of the United States,

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Speaker 4: it boggles the mind.

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Speaker 3: Well, instant reaction from Arnie Duncan.

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Speaker 2: What do you remember from that experience walking the halls

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Speaker 2: of the Senate meeting with senators? What happens when you

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Speaker 2: go into these offices for the sit down.

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Speaker 4: Yeah, that's a great question, and that's what's so said

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Speaker 4: to me. What I, honestly, you know, feel is that

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Speaker 4: what present like Trump and others are trying to do

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Speaker 4: is really to weaponize and politicize education. And I always

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Speaker 4: say education should be the ultimate bipartisan issue or non

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Speaker 4: partisan issue. There's nothing left or right or Republican a

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Speaker 4: Democrat about more babies having access to pre K and

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Speaker 4: more kids reading at grade level, and raising high school

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Speaker 4: graduation rates and trying to lead the world in college completion.

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Speaker 4: So I worked with all of my Republican colleagues, UH

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Speaker 4: spent time with them, visited their communities. I think my confirmation,

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Speaker 4: I think it was a unanimous and was felt very

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Speaker 4: grateful that I had that kind of bipartisan support because

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Speaker 4: I think people understood that there was nothing political about

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Speaker 4: me or about my mission to give kids a better

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Speaker 4: chance at life. And somehow we have totally lost that.

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Speaker 4: It doesn't mean we don't have legitimate differences in terms

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Speaker 4: of policy disagreements. You're always going to have that. But

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Speaker 4: I appreciated the chance to work with my republic and colleagues, congressmen, senators, governors.

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Speaker 4: The confirmation process was definitely harrowe, and I was a

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Speaker 4: new kid, new to DC and new to the ways,

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Speaker 4: but was treated beyond fairly, thoughtfully, with consideration, and I

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Speaker 4: tried to return that level of respect to the folks

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Speaker 4: I worked with.

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Speaker 2: I remember that very well as a matter of fact.

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Speaker 2: And you were kind to come visit us when I

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Speaker 2: was working in satellite radio for one of your first

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Speaker 2: town hall conversations. And how your life must have changed,

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Speaker 2: and how the lives of all of these nominees will change,

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Speaker 2: I can't begin to imagine. But while we have a

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Speaker 2: couple of minutes less left with you. I want to

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Speaker 2: drill down a little bit more on what we were

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Speaker 2: talking about, because while we did hear promises to eliminate

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Speaker 2: the department, you don't seem to buy that, and I

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Speaker 2: don't think Congress will either. We have some direction from

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Speaker 2: the America First Policy Institute that has proposed changes on

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Speaker 2: behalf of the Trump transition team, including stopping schools from

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Speaker 2: quote promoting inaccurate and unpatriotic concepts unquote about American history

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Speaker 2: surrounding institutionalized racism. This is critical race theory. I presume

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Speaker 2: they're referring to secretary. What would that mean by the

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Speaker 2: direction of a Trump run Department of Education?

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Speaker 4: Right, and again, I just have to repeat myself. I

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Speaker 4: hate the weaponization. I hate to the politicization of anything

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Speaker 4: happening to two of education because it's so critical to

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Speaker 4: our nation. What they do is they attack any three

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Speaker 4: letter acronyms. So call it CRT, call it DEI call

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Speaker 4: it SEL. They attack that. Those aren't the issues that

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Speaker 4: people are worried about. What are the real issues. We

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Speaker 4: have tens of millions of children who are very far

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Speaker 4: behind academically coming out of the pandemic. We have to

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Speaker 4: help them catch up as fast as we can through

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Speaker 4: high doses tutoring. We have kids that are productally appsent

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Speaker 4: who haven't come back to school. We have to go

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Speaker 4: find them, knocking doors, bring them in. We need to

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Speaker 4: attract and retain the best teachers we can. This is

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Speaker 4: a very tough time to be in education. We have

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Speaker 4: to continue to raise high school graduation rates because if

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Speaker 4: you drop out of high school today, you're basically condemned

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Speaker 4: to poverty and social failure. There are no good jobs

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Speaker 4: out there for you. We have to educate our way

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Speaker 4: to the better economy. We have to continue to make

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Speaker 4: college more accessible and affordable. Those are the kinds of

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Speaker 4: real issues that touch real parents and real children and

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Speaker 4: real communities that whoever leads to the Department of Education

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Speaker 4: should be focused on, not these distractions. They sort of

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Speaker 4: manufacture fear about things that don't make sense instead of

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Speaker 4: spending time on things that do. And if you talk

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Speaker 4: to parents, what are parents worried about today? They're worried

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Speaker 4: about their children's mental health, they're worried about bullying in schools,

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Speaker 4: and they're worried about school shootings. And whether you attack

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Speaker 4: the department or just Manthelm Department do whatever. That has

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Speaker 4: nothing to do with helping parents and helping children be successful.

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Speaker 4: Vast majority of parents in America they don't care. They

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Speaker 4: could care less about the Department of Education. They care

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Speaker 4: about their local school. They care passionately about their child.

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Speaker 4: That's where the focus has to be, not on these political,

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Speaker 4: made up, divisive issues. Really is disharm It's so troubling

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Speaker 4: to me.

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Speaker 2: Well, I really appreciate your honesty and answering these questions. Lastly,

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Speaker 2: what do you think of Linda McMahon at the top

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Speaker 2: of the agency. There's no reason to believe that she

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Speaker 2: will do all the things that Donald Trump suggests. But

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Speaker 2: you've got someone with no background in education, remembering, of course,

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Speaker 2: you ran the school system in Chicago before you had

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Speaker 2: that job.

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Speaker 4: Yeah, I guess my bigger concern and obviously I don't

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Speaker 4: know her, have never met her. But my biggest concern

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Speaker 4: is that if you look at a number of his

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Speaker 4: cabinet nominees, including starting with Matt Gates, these are not

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Speaker 4: people who anybody can trust. And I really worry that

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Speaker 4: he is very intentionally trying to create distrust of all institutions.

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Speaker 4: He's done that with the media. He's done that with science,

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Speaker 4: He's doing that with his cabinet nominees, trying to create

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Speaker 4: distrust in our own government. I worry he's trying to

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Speaker 4: create distrust in our neighborhood schools, and that, unfortunately, is

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Speaker 4: what authoritarian leader do is they try and sow distrust

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Speaker 4: in any institution and become the only source of knowledge,

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Speaker 4: the only source of truth. So again, I've never met her,

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Speaker 4: don't have any sense. Obviously, she has no background to

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Speaker 4: do this job. The story was that she wanted to

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Speaker 4: be the Commerce secretary, but the guy who he picked

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Speaker 4: to do that gave him more money, so this was

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Speaker 4: her consolation prize. I just hope she comes in, listens

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Speaker 4: to children, listens to teachers, listens to parents, and does

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Speaker 4: the right thing to help America. I always say our

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Speaker 4: military is our best defense, but a great education system

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Speaker 4: is our best offense. I truly hope we don't lose

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Speaker 4: the plot here because the consequences for our children, families,

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Speaker 4: and nation would be extraordinary, extraordinarily serious.

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Speaker 2: Spoken from someone who's run the Department of Education. Arnie

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Speaker 2: duncan appreciate your time very much. With Breaking News today

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Speaker 2: from Washington, the former Congressman Matt Gates has withdrawn his

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Speaker 2: name from consideration to be the next Attorney General. We'll

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Speaker 2: have more from our panel next, Rick and Jenior on

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Speaker 2: the way here on Bloomberg.

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Speaker 1: You're listening to the Bloomberg Balance of Power podcast kens

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Speaker 1: just live weekdays at noon Eastern on Applecarplay and enroun

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Speaker 1: Oo with the Bloomberg Business app. You can also listen

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Speaker 1: live on Amazon Alexa from our flagship New York station,

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Speaker 1: Just say Alexa play Bloomberg eleven thirty.

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Speaker 2: We do have a big breaker here and it's a

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Speaker 2: redhead on the terminal. Matt Gates is out, of course.

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Speaker 2: It's a Twitter announcement or X as we now call

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Speaker 2: it elon Musk's platform. Brings us the news again. Matt

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Speaker 2: Gates says he had excellent meetings with senators yesterday, but

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Speaker 2: he's become a distraction.

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Speaker 3: Quote.

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Speaker 2: It is clear that my confirmation was unfairly becoming a

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Speaker 2: distraction to the critical work of the Trump vance transition.

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Speaker 3: He says, no time to waste on a.

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Speaker 2: Needlessly protracted Washington's scuffle. And the scuffle was already well underway.

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Speaker 2: It was at this time yesterday and we were talking

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Speaker 2: about the Ethics Committee in the US House meeting at

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Speaker 2: an undisclosed location to vote on whether to release its

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Speaker 2: report into Matt Gates and the salacious allegations against him

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Speaker 2: that he has denied. No resolution, no agreement, split down

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Speaker 2: the middle. Report still under wraps, but there's now a

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Speaker 2: Democratic led effort in the US House to have this

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Speaker 2: made public. Sean Caston who was with us just two

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Speaker 2: days ago, Democrat from Illinois, that's some pretty strong words

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Speaker 2: about Matt Gates and Donald Trump in our conversation.

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Speaker 3: Has brought a privileged resolution to the floor.

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Speaker 2: Easy for me to say that will force a vote,

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Speaker 2: a full House vote on whether to make the ethics

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Speaker 2: report public. Now that starts the clock. You remember how

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Speaker 2: this works. We walk out here on balance of power

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Speaker 2: on a two day countdown, So that means it's going

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Speaker 2: to happen after Thanksgiving. Lawmakers will come back, they will

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Speaker 2: vote on this. But maybe now it doesn't matter. We

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Speaker 2: talked to by the way, no fan of Matt Gates.

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Speaker 2: The Congressman from New York, Mike Lawler, Republican, talked to

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Speaker 2: us just ahead of the news of Mack Gates dropping out,

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Speaker 2: just to get a sense of where people's heads were.

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Speaker 2: This is a Republican again talking. Here's Congressman Lawler.

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Speaker 5: President Trump is certainly entitled as president elect to nominate

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Speaker 5: whoever he sees fit to serve in that role, and

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Speaker 5: the Senate obviously has the process by which to confirm.

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Speaker 5: I stand by everything I've ever said about Matt Gates.

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Speaker 5: I don't waiver in that belief. Do I think he's

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Speaker 5: the right person? No, but ultimately that will be a

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Speaker 5: decision by the Senate.

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Speaker 3: Well not anymore. Let's assemble our political panel.

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Speaker 2: Jeanie Shanzano is with a senior Democracy fellow, Center for

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Speaker 2: the Study of the Presidency in Congress, Bloomberg Politics contributor,

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Speaker 2: Democratic analyst, And I'm glad to say that Rick Davis

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Speaker 2: is back with us today, Republican strategist, Bloomberg Politics contributor

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Speaker 2: and partner at Stone Court Capital.

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Speaker 3: Rick. This was a quick one.

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Speaker 2: I don't know how this compares in history, but the

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Speaker 2: withdrawal came within days of Matt Gates being announced.

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Speaker 3: What do you make of this development?

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Speaker 6: I think the key thing is he withdraws within twenty

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Speaker 6: four hours after his meeting in the Senate yesterday, and

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Speaker 6: we can only speculate that it obviously didn't go according

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Speaker 6: to his plan. I think there was plenty of senators,

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Speaker 6: probably more than he would need, to reject his confirmation,

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Speaker 6: express serious reservations about his fitness for office, and I

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Speaker 6: think that he took that literally and didn't want to

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Speaker 6: walk the plank. Senators were saying things like this is

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Speaker 6: going to be much worse than the Kavanaugh hearings, which

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Speaker 6: we all remember were sort of out of control screaming fest.

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Speaker 6: So rather than put himself through that and wind up

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Speaker 6: without a job, I think he's taken the best route

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Speaker 6: and withdrawn. Now we haven't heard that last of Matt Gates.

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Speaker 6: I mean, he withdrew from the House of Representatives last Wednesday,

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Speaker 6: and now he needs a job. So it'll be interesting

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Speaker 6: to see what Trump team comes up with next.

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Speaker 2: Does need a job, and I think they're going to

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Speaker 2: need a senator in Florida if Marco Rubio is confirmed

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Speaker 2: as head of the state Department. Jeanie, these must have

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Speaker 2: been some pretty rough meetings yesterday. Unlet's Matt Gaye's got

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Speaker 2: some phone calls last night? Or are you among those

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Speaker 2: who think that this whole thing was a setup to

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Speaker 2: begin with to get him out of whatever the Ethics

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Speaker 2: Committee found in their investigation.

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Speaker 7: No, you know, I have no evidence to suggest this

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Speaker 7: was a setup. It seems to be in keeping with

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Speaker 7: the way Trump operates. And you know, to me, this

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Speaker 7: entire thing, if it wasn't bad enough with it in

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Speaker 7: the last few hours, as we heard that, you know,

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Speaker 7: he's doing things like transporting women to New York City,

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Speaker 7: going to see Pretty Women on Broadway, you know, the

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Speaker 7: ultimate show and movie about you know, a hooker with

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Speaker 7: a heart of gold, and he's paying these women on Venmo.

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Speaker 7: I mean it just it jumped the shark so long

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Speaker 7: ago it became outrageous to think he could have survived

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Speaker 7: in this contest, or that Republicans would would have wanted

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Speaker 7: to put this thing out in the public. But you know,

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Speaker 7: Rick is onto something. He needs a job, right He

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Speaker 7: can skirt Senate confirmation if they put him in the

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Speaker 7: White House. But don't forget he was elected to the

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Speaker 7: House of Representatives. He only resigned from the seat he

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Speaker 7: currently holds. He can move himself right back into the

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Speaker 7: House of Representatives. And you know he's a flame thrower,

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Speaker 7: so he may not mind so much because as of now,

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Speaker 7: we know so much of what was in that report already.

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Speaker 7: If Ethics decides to pick it up again, he could

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Speaker 7: be there to make republicans lives miserable. So he's got

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Speaker 7: a lot of options. And it's certainly not the last

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Speaker 7: time we've heard of Matt Gates.

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Speaker 2: Wow, a lot there from Genie. We just heard from

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Speaker 2: Donald Trump. Truth social I greatly appreciate the recent efforts.

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Speaker 2: I'm reading directly from his post of Matt Gates and

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Speaker 2: seeking approval to be Attorney General. Donald Trump writes he

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Speaker 2: was doing very well, but at the same time did

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Speaker 2: not want to be a distraction for the administration, for

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Speaker 2: which he has much respect. Matt has a wonderful future.

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Speaker 2: Donald Trump says, I look forward to watching all of

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Speaker 2: the great things he will do. Does that sound like

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Speaker 2: somebody who wants to bring Gates into the White House?

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Speaker 6: Rick Well, I think he has already made that pretty

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Speaker 6: clear that he wanted him in the cabinet. There are

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Speaker 6: plenty of sub cabinet level jobs that won't get the

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Speaker 6: scrutiny that attorney general would have brought on to him.

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Speaker 6: So yeah, I don't think they're going to just cut

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Speaker 6: him loose. Frankly, he's probably more dangerous to Donald Trump

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Speaker 6: without a job in the administration than he is with one.

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Speaker 6: You know, that way they can at least keep track

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Speaker 6: of what he's up to. But you mentioned it earlier,

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Speaker 6: there is going to be a vacancy, you know, in

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Speaker 6: the United States Senate from Florida. You know that's certainly

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Speaker 6: not out of the realm of possibilities that Matt Gates

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Speaker 6: would show up in that same caucus that just beat

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Speaker 6: him up yesterday. Won't be the first Senator that comes

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Speaker 6: up there with some wounds, but it would be certainly

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Speaker 6: a rock thrown against the glass of the Republican caucus

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Speaker 6: in the Senate if he winds up A colleague.

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Speaker 2: Wow, Jeanie, this has taken the light off of Pete Hegseth.

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Speaker 2: Today Hegseeth, the Secretary of Defense nominee is actually walking

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Speaker 2: the halls of the Senate meeting with senators today as MATC.

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Speaker 3: Gates did yesterday.

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Speaker 2: And I look, I don't know about the timing here,

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Speaker 2: but it's just last night that a police report came

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Speaker 2: out from Monterey, California about his experience with a woman

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Speaker 2: in twenty seventeen who accused him of sexual assault.

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Speaker 3: It goes further than that.

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Speaker 2: Genie, and I'm sure you've read this. The records release

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Speaker 2: show the woman told an emergency room nurse that she

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Speaker 2: may have been drugged and was then assaulted by a

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Speaker 2: man she later identified as Pete. Hegseth, where are we

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Speaker 2: going with this nomination? What are these meetings today?

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Speaker 7: You know he had he was in those meetings today.

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Speaker 7: The report is very damning. He said something that at

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Speaker 7: least caught my attention today speaking to reporters, when he

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Speaker 7: was asked about that report, he said something like, as

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Speaker 7: far as the media is concerned, I have been cleared.

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Speaker 7: And it was that prefaces about as far as the

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Speaker 7: media is concerned. That is very strange way to preface that.

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Speaker 7: Of course, he wasn't He wasn't cleared. He just was

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Speaker 7: not charged in with this. And he did then pay

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Speaker 7: off this woman. And you know, the question I think

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Speaker 7: for Donald Trump and the transition team here once again

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Speaker 7: is number one, did he tell them about this or

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Speaker 7: did he pull the wool over their eyes? You know,

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Speaker 7: it's one thing if he is not honest with say

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Speaker 7: viewers on Fox News for those years he's on there.

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Speaker 7: But it's another thing if he didn't tell the transition team.

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Speaker 7: Who of course, has put their own hands tied behind

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Speaker 7: their back by not using the FBI to investigate and

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Speaker 7: to vet these folks, So you know, it's all part

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Speaker 7: of that. But I think the big thing about Pete Hegseth,

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Speaker 7: even more damning if you can say that are equally damning,

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Speaker 7: is his absolute lack of qualifications to run this department

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Speaker 7: by any stretch of the imagination. And that's true of

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Speaker 7: many of these nominees, but Pete Hegseth and Matt Gates

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Speaker 7: take the cake for that, and that's what I think

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Speaker 7: Democrats need to focus on.

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Speaker 3: Well, it's it's crazy we're talking about this.

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Speaker 2: I even get a special background for it if you're

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Speaker 2: with us on YouTube. Rick, So look, I'm running out

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Speaker 2: of questions for you guys here. Yes, we have the

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Speaker 2: police report, but we have something else. Maybe I should

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Speaker 2: say it. We have someone else, Rick, someone actually I

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Speaker 2: think you know named Jony Ernst. Pete Hegseth says women

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Speaker 2: should not be allowed in combat. There are going to

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Speaker 2: be some Republicans, including Jony Ernst, a combat veteran on

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Speaker 2: the Judiciary panel, who have a problem with that approach.

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Speaker 3: Rick.

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Speaker 2: What is more challenging to heg Seth's confirmation the police report,

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Speaker 2: which by the way, he denies the allegations, or his position,

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Speaker 2: for instance, on women in combat.

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Speaker 6: Well, I think you acdically made to point Joe, it's

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Speaker 6: his past position. You know, he wouldn't be the first

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Speaker 6: Cabinet point e to go to his confirmation hearing and

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Speaker 6: do a little bit of flip flopping. I was at

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Speaker 6: a national security conference yesterday and this was addressed by

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Speaker 6: a lot of the four stars that were there, and

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Speaker 6: their point was, we can be genderblind and if you

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Speaker 6: are ready for the job, you should fill it. And

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Speaker 6: I wouldn't be surprised that that's the comments that he makes.

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Speaker 6: If he gets as far as getting a confirmation hearing,

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Speaker 6: it won't be just Joni Ernzt going after him on

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Speaker 6: these issues. This is a bipartisan approach to the military

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Speaker 6: that has been frankly rewarded by enhancing our security with

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Speaker 6: women in combat, and he's not likely to hold onto

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Speaker 6: that stream if he wants to get through confirmation unscathed.

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Speaker 3: As we spend time.

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Speaker 2: With Rick and Jeannie our signature panel here, if you're

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Speaker 2: with us on YouTube today, I'm now in the upside down.

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Speaker 2: Oh no, look, we're back in Washington, Jennie, what's your

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Speaker 2: take on this. The police report or the position on

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Speaker 2: women in combat create a greater challenge to the nominee

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Speaker 2: for sectif.

436
00:23:18,160 --> 00:23:19,960
Speaker 7: Can I have a third choice of all of the

437
00:23:20,040 --> 00:23:25,639
Speaker 7: above and more. You know, you mentioned Jonie Ernst, and

438
00:23:25,680 --> 00:23:28,600
Speaker 7: it's a great example. Let's look at Tammy Duckworth. She

439
00:23:28,760 --> 00:23:32,479
Speaker 7: is a double amputee VET, and she is going to

440
00:23:32,560 --> 00:23:35,919
Speaker 7: face this man who has said in the past, and

441
00:23:35,960 --> 00:23:37,720
Speaker 7: we'll have to hear what he says if he actually

442
00:23:37,760 --> 00:23:41,480
Speaker 7: gets to confirmation hearings that women shouldn't serve in combat.

443
00:23:41,520 --> 00:23:44,879
Speaker 7: I wonder how that's going to go over with Senator Duckworth.

444
00:23:45,000 --> 00:23:48,160
Speaker 7: And you know, he can claim that these positions are

445
00:23:48,160 --> 00:23:50,840
Speaker 7: in the past, so he will have to defend those.

446
00:23:50,920 --> 00:23:53,760
Speaker 7: If he decides to waffle on them and change his mind,

447
00:23:53,800 --> 00:23:56,240
Speaker 7: he's going to have to defend that. But there's far

448
00:23:56,320 --> 00:23:58,520
Speaker 7: more where that is. And I go back to the

449
00:23:58,560 --> 00:24:02,680
Speaker 7: fact that Pete Worth, hegseth Rather, for all of his

450
00:24:03,040 --> 00:24:07,680
Speaker 7: military service, has never ever shown the ability to run

451
00:24:07,720 --> 00:24:11,239
Speaker 7: an organization as big as the Department of Defense in

452
00:24:11,320 --> 00:24:13,959
Speaker 7: terms of the budget, in terms of the personnel, and

453
00:24:14,040 --> 00:24:18,119
Speaker 7: so the qualifications issue alone is one that has to

454
00:24:18,160 --> 00:24:21,080
Speaker 7: be addressed in addition to all these other things. And

455
00:24:21,119 --> 00:24:23,320
Speaker 7: this is what's so concerning to so many people in

456
00:24:23,320 --> 00:24:26,800
Speaker 7: the defense area, is the fact that he has absolutely

457
00:24:26,840 --> 00:24:27,719
Speaker 7: no background in this.

458
00:24:29,560 --> 00:24:32,080
Speaker 2: Genie Shanzeno and Rick Davis, our signature panel.

459
00:24:35,760 --> 00:24:39,320
Speaker 1: You're listening to the Bloomberg Balance of Power podcast Ketch

460
00:24:39,359 --> 00:24:42,439
Speaker 1: just live weekdays at noon Eastern on Apocrplay and then

461
00:24:42,480 --> 00:24:45,480
Speaker 1: Froud Auto with the Bloomberg Business app. Listen on demand

462
00:24:45,520 --> 00:24:49,600
Speaker 1: wherever you get your podcasts, or watch us live on YouTube.

463
00:24:51,560 --> 00:24:53,480
Speaker 8: We want to get more on this now as we

464
00:24:53,800 --> 00:24:56,400
Speaker 8: dissect what exactly has happened here and what it means,

465
00:24:56,400 --> 00:24:59,800
Speaker 8: and turn to our signature political panel. Genie Shanzeno is

466
00:24:59,840 --> 00:25:01,879
Speaker 8: what that. She's senior Democracy Fellow at the Center for

467
00:25:01,920 --> 00:25:04,720
Speaker 8: the Study of the Presidency and Congress alongside Stone Court

468
00:25:04,760 --> 00:25:08,960
Speaker 8: Capital partner Rick Davis. Theyre a Democrat and Republican analyst, respectively. Rick,

469
00:25:08,960 --> 00:25:12,400
Speaker 8: I would love to hear from you here, just on timing.

470
00:25:12,560 --> 00:25:14,280
Speaker 8: While we all knew the writing might be on the

471
00:25:14,320 --> 00:25:15,920
Speaker 8: wall with us, when it looked like it was going

472
00:25:15,960 --> 00:25:19,639
Speaker 8: to be a steep uphill climb for Gates to be confirmed,

473
00:25:19,680 --> 00:25:22,400
Speaker 8: he was just on Capitol Hill yesterday with the Vice

474
00:25:22,440 --> 00:25:25,360
Speaker 8: president elect JD. Vance trying to fight the fight here.

475
00:25:25,400 --> 00:25:27,320
Speaker 8: Why give it up when November is not even over.

476
00:25:28,520 --> 00:25:30,320
Speaker 9: Yeah, it was pretty precipitous.

477
00:25:30,600 --> 00:25:33,560
Speaker 6: We can only speculate that the meeting with the senators

478
00:25:34,320 --> 00:25:39,800
Speaker 6: was not positive. If you saw Lindsey Graham's reaction coming

479
00:25:39,800 --> 00:25:43,200
Speaker 6: out of the out of the Capitol last night, he

480
00:25:43,240 --> 00:25:45,600
Speaker 6: was not particularly happy. And of course he would be

481
00:25:45,800 --> 00:25:49,240
Speaker 6: the chairman of the Judiciary committee that would process that

482
00:25:49,880 --> 00:25:52,919
Speaker 6: hearing in his committee. So I think he is a

483
00:25:52,960 --> 00:25:55,320
Speaker 6: telling person who was by the way, up until the

484
00:25:55,359 --> 00:26:00,159
Speaker 6: end of yesterday strongly supporting Matt Gates and confirmations. So

485
00:26:01,320 --> 00:26:03,840
Speaker 6: he's another one who's probably been injured by this since

486
00:26:03,880 --> 00:26:06,679
Speaker 6: he leaned in so hard on it. The reality is

487
00:26:08,000 --> 00:26:10,640
Speaker 6: it's a little unusual because also Donald Trump was making

488
00:26:10,680 --> 00:26:14,160
Speaker 6: phone calls to senators, which is not an unusual into itself,

489
00:26:14,240 --> 00:26:17,320
Speaker 6: but you would have thought he'd want to see how

490
00:26:17,400 --> 00:26:21,440
Speaker 6: that meeting took place before he weighed in directly with

491
00:26:21,480 --> 00:26:25,160
Speaker 6: the senators on that committee. So i'd say set back

492
00:26:25,200 --> 00:26:28,760
Speaker 6: for Team Trump on their transition. They're going to have

493
00:26:28,800 --> 00:26:30,639
Speaker 6: to fall back. I have no doubt that they were

494
00:26:31,119 --> 00:26:35,639
Speaker 6: up until this announcement fully prepared to charge ahead with

495
00:26:35,800 --> 00:26:38,160
Speaker 6: his confirmation, and now they're going to have to fall

496
00:26:38,200 --> 00:26:41,800
Speaker 6: back and figure out who else to put up Gudi.

497
00:26:41,880 --> 00:26:44,600
Speaker 2: There was a democratic led effort, I should say, is one,

498
00:26:44,600 --> 00:26:48,639
Speaker 2: because it's still underway under privileged resolution to have a

499
00:26:48,640 --> 00:26:52,399
Speaker 2: full House vote on whether to release formally publicly the

500
00:26:52,440 --> 00:26:55,879
Speaker 2: Ethics Committee report into Matt Gates. Is there any point

501
00:26:55,920 --> 00:26:58,399
Speaker 2: in pursuing that? As the Democrat on our panel, do

502
00:26:58,480 --> 00:26:59,960
Speaker 2: you still want that to be made public?

503
00:27:02,080 --> 00:27:04,280
Speaker 7: I don't think there's a rush to do it. Certainly,

504
00:27:04,320 --> 00:27:06,520
Speaker 7: the committee is going to meet again next week on

505
00:27:06,560 --> 00:27:09,800
Speaker 7: the fifth, if they keep to that schedule, and you know,

506
00:27:10,080 --> 00:27:13,040
Speaker 7: I think it's important that they do work together and

507
00:27:13,119 --> 00:27:16,840
Speaker 7: respect the rules of the House, and so I don't

508
00:27:17,080 --> 00:27:20,760
Speaker 7: think there's any real reason to rush that out. But again,

509
00:27:20,960 --> 00:27:24,280
Speaker 7: it depends on what happens with Matt Gates next. Where

510
00:27:24,400 --> 00:27:27,359
Speaker 7: does he go, you know, does he fight Laura Trump

511
00:27:27,400 --> 00:27:30,280
Speaker 7: to become Senator of Florida, Does he come back to

512
00:27:30,320 --> 00:27:32,840
Speaker 7: the House as you were talking to Wendy about, does

513
00:27:32,880 --> 00:27:36,600
Speaker 7: he get into the White House, you know, skirting confirmation

514
00:27:36,720 --> 00:27:39,160
Speaker 7: by the Senate. But I would say, you know, for

515
00:27:39,359 --> 00:27:44,879
Speaker 7: all of Trump's bravado in this process, and his attempts

516
00:27:44,920 --> 00:27:48,600
Speaker 7: to try to skirt around the confirmation process and talk

517
00:27:48,640 --> 00:27:52,160
Speaker 7: about recess appointments and those kinds of things. It is

518
00:27:52,160 --> 00:27:55,240
Speaker 7: to the credit of the Senate that whatever happened, they

519
00:27:55,359 --> 00:27:59,560
Speaker 7: stood up and the GOP in the Senate and apparently

520
00:28:00,080 --> 00:28:03,120
Speaker 7: were at least able to commit some gates that this

521
00:28:03,280 --> 00:28:05,679
Speaker 7: was a no go. And that is a win for

522
00:28:05,880 --> 00:28:09,399
Speaker 7: James Madison. So here here to James Madison for giving

523
00:28:09,440 --> 00:28:11,680
Speaker 7: us these checks and balances, because it is a win

524
00:28:11,800 --> 00:28:13,840
Speaker 7: for him and for all of us.

525
00:28:14,720 --> 00:28:14,920
Speaker 9: Well.

526
00:28:14,920 --> 00:28:17,359
Speaker 8: It might also be a win for Senator John Foon,

527
00:28:17,440 --> 00:28:19,840
Speaker 8: the incoming Majority leader Rick, who was going to have

528
00:28:19,880 --> 00:28:22,160
Speaker 8: to navigate what could have been a really tricky situation

529
00:28:22,359 --> 00:28:25,320
Speaker 8: with this confirmation. And I wonder if this now opens

530
00:28:25,359 --> 00:28:28,199
Speaker 8: a window for instead scrutiny and perhaps a little bit

531
00:28:28,200 --> 00:28:31,520
Speaker 8: of pushback on the president elects from the majority in

532
00:28:31,560 --> 00:28:34,480
Speaker 8: the Senate in regard to other nominees, thinking here Pete

533
00:28:34,520 --> 00:28:36,320
Speaker 8: Hegseth or Tulca Gabbert.

534
00:28:37,440 --> 00:28:41,680
Speaker 6: Yeah, there seems to be a realization in mar Lago

535
00:28:41,880 --> 00:28:45,440
Speaker 6: that these things could inure to the detriment of the

536
00:28:45,560 --> 00:28:46,320
Speaker 6: president elect.

537
00:28:47,160 --> 00:28:49,520
Speaker 9: So pulling the plug this early.

538
00:28:49,240 --> 00:28:52,120
Speaker 6: On met Gates was I think a surprise to all,

539
00:28:52,880 --> 00:28:56,320
Speaker 6: and I'm sure they are monitoring the media and the

540
00:28:56,360 --> 00:29:03,880
Speaker 6: Senator's reactions to other controversial cabinet picks that you've just described.

541
00:29:03,400 --> 00:29:05,320
Speaker 9: So I think this is TBD.

542
00:29:06,040 --> 00:29:08,320
Speaker 6: The good news about the Senate is they weren't the

543
00:29:08,320 --> 00:29:11,000
Speaker 6: ones who had to pull the plug on Matt Gates.

544
00:29:11,040 --> 00:29:14,360
Speaker 6: Certainly some in the caucus weren't happy with this. They

545
00:29:14,400 --> 00:29:19,120
Speaker 6: made themselves known yesterday, probably enough to thwart the nomination

546
00:29:19,280 --> 00:29:22,200
Speaker 6: if it came to a floor vote. But the reality

547
00:29:22,320 --> 00:29:26,440
Speaker 6: is they were able to see his nomination pulled by

548
00:29:26,480 --> 00:29:31,480
Speaker 6: his withdrawal without actually having to spend any political capital themselves,

549
00:29:31,520 --> 00:29:38,880
Speaker 6: so they have plenty charged up the majority. Leader Thune

550
00:29:38,960 --> 00:29:43,200
Speaker 6: is indicated that this process will move forward, different from

551
00:29:43,280 --> 00:29:46,600
Speaker 6: some early indications that there might be a mass recess

552
00:29:46,600 --> 00:29:47,760
Speaker 6: appointment of the cabinet.

553
00:29:48,120 --> 00:29:50,280
Speaker 9: So we're learning as we go along with this.

554
00:29:50,160 --> 00:29:52,720
Speaker 6: New Trump cabinet, and it seems to be more balanced

555
00:29:52,720 --> 00:29:55,960
Speaker 6: with the Senate than I think many people many observers

556
00:29:55,960 --> 00:29:56,640
Speaker 6: thought it might be.

557
00:29:57,680 --> 00:30:00,680
Speaker 2: It seems we're learning more about Pete Hegseth is well, Genie,

558
00:30:00,760 --> 00:30:04,160
Speaker 2: and I wonder your thoughts on how this breaking news

559
00:30:04,240 --> 00:30:06,840
Speaker 2: about Matt Gates, the reaction he apparently got in the

560
00:30:06,880 --> 00:30:11,440
Speaker 2: Senate yesterday might inform what happens to Donald Trump's nominee

561
00:30:11,440 --> 00:30:14,640
Speaker 2: for Defense secretary. It was just last night, interesting timing

562
00:30:15,040 --> 00:30:17,240
Speaker 2: that a police report was made public. As we've been

563
00:30:17,240 --> 00:30:22,400
Speaker 2: discussing about accusations by a woman that heg Seth, she

564
00:30:22,520 --> 00:30:26,600
Speaker 2: says sectually assaulted her. There is some new information in here,

565
00:30:27,320 --> 00:30:29,520
Speaker 2: as the record show the woman told an emergency room

566
00:30:29,600 --> 00:30:33,360
Speaker 2: nurse that she may have been drugged that night. This

567
00:30:33,520 --> 00:30:36,280
Speaker 2: is something we were looking at in a vacuum until

568
00:30:36,400 --> 00:30:39,160
Speaker 2: this Matt Gates headline broke today. What could this mean

569
00:30:39,160 --> 00:30:40,040
Speaker 2: for Pete Hegseth.

570
00:30:41,760 --> 00:30:44,760
Speaker 7: You know, I think it is a reflection of the

571
00:30:44,880 --> 00:30:48,520
Speaker 7: inadequate vetting that has gone on here, particularly in the

572
00:30:48,560 --> 00:30:51,680
Speaker 7: case of Pete hegg Seth. I mean, it's you know,

573
00:30:52,080 --> 00:30:56,040
Speaker 7: I can't imagine that they didn't realize about Matt Gates

574
00:30:56,040 --> 00:30:58,440
Speaker 7: because that investigation had been going on in the house

575
00:30:58,480 --> 00:31:02,720
Speaker 7: for so long. But Pete Hegseth, apparently the transition team

576
00:31:03,280 --> 00:31:06,800
Speaker 7: was surprised to get this news about the payoff, and

577
00:31:06,840 --> 00:31:10,280
Speaker 7: now yesterday the police report. So this is what happens.

578
00:31:10,280 --> 00:31:15,400
Speaker 7: And you know, Carl wrote said this yesterday. Inadequate reading rushing,

579
00:31:15,800 --> 00:31:20,400
Speaker 7: disregarding people's qualifications first for revenge. All of those things

580
00:31:20,400 --> 00:31:23,440
Speaker 7: have left a Trump team which had a pretty good

581
00:31:23,480 --> 00:31:27,840
Speaker 7: first week of nominees with these really difficult nominees. And

582
00:31:28,200 --> 00:31:31,360
Speaker 7: you know, I think it's going to fall on jd Vance,

583
00:31:31,400 --> 00:31:33,800
Speaker 7: who is the sherpa. He was the sherpa of Gates.

584
00:31:33,800 --> 00:31:36,960
Speaker 7: He is now the Sherpa of Heagseth, to see what

585
00:31:37,320 --> 00:31:40,200
Speaker 7: inroads they can make in the setting in the Senate rather,

586
00:31:40,280 --> 00:31:43,640
Speaker 7: but there are very very many questions in the Senate

587
00:31:43,680 --> 00:31:47,320
Speaker 7: and in the defense area about Pete Hegseth, not just this,

588
00:31:47,480 --> 00:31:50,960
Speaker 7: but his qualifications and his views. All of those things

589
00:31:51,040 --> 00:31:53,200
Speaker 7: are going to come through in a confirmation process. And

590
00:31:53,240 --> 00:31:55,800
Speaker 7: the question for the Trump team is do they want

591
00:31:55,840 --> 00:31:59,960
Speaker 7: to put themselves through this? If there were more particularly salacios,

592
00:32:01,240 --> 00:32:02,640
Speaker 7: you know, things.

593
00:32:02,320 --> 00:32:06,200
Speaker 2: To come out with instant analysis to news that Matt

594
00:32:06,240 --> 00:32:09,520
Speaker 2: Gates is withdrawing his name from nomination to be the

595
00:32:09,520 --> 00:32:14,000
Speaker 2: next Attorney General. Geenie Shanzano and Rick Davis, our signature panel,

596
00:32:14,040 --> 00:32:16,719
Speaker 2: thank you both so much. As we add the voice

597
00:32:17,240 --> 00:32:20,120
Speaker 2: of a Congressman in Don Bayer, a member of the

598
00:32:20,160 --> 00:32:24,000
Speaker 2: Democratic Conference in the US House. Don Bayer of Virginia

599
00:32:24,800 --> 00:32:28,240
Speaker 2: Welcome back to Bloomberg TV and Radio. Congressman, I'm sure

600
00:32:28,280 --> 00:32:31,160
Speaker 2: you have some thoughts about the day Matt Gates must

601
00:32:31,160 --> 00:32:33,560
Speaker 2: have had in the US Senate. But regarding the House,

602
00:32:33,600 --> 00:32:35,480
Speaker 2: and I understand we're going to talk a bit later

603
00:32:35,520 --> 00:32:39,360
Speaker 2: with your colleague Sean Caston, who had a privileged resolution

604
00:32:40,040 --> 00:32:43,960
Speaker 2: to force a floor vote on whether to make public

605
00:32:43,960 --> 00:32:47,000
Speaker 2: the Ethics Committee investigation the report into Matt Gates.

606
00:32:47,040 --> 00:32:48,400
Speaker 3: Do you think that should still happen?

607
00:32:50,600 --> 00:32:53,640
Speaker 10: Yes, I do, although there will be less pressure to

608
00:32:53,680 --> 00:32:55,920
Speaker 10: do it now that he is no longer a candidate

609
00:32:55,920 --> 00:33:01,000
Speaker 10: for Attorney general. But you know, Matt had alienated so

610
00:33:01,080 --> 00:33:03,800
Speaker 10: many people on both sides of the aisle that we

611
00:33:03,920 --> 00:33:08,320
Speaker 10: expected quite a few Republican votes to actually see the report.

612
00:33:09,160 --> 00:33:12,360
Speaker 10: It's less important now unless he decides to come back.

613
00:33:12,640 --> 00:33:16,600
Speaker 10: And he won the election. He resigned from this Congress,

614
00:33:16,640 --> 00:33:19,000
Speaker 10: but he hasn't resigned from the next congression, so this

615
00:33:19,080 --> 00:33:20,880
Speaker 10: may be not moot yet.

616
00:33:22,640 --> 00:33:26,360
Speaker 8: Well, so, Congressman, is it your understanding that he could

617
00:33:27,400 --> 00:33:30,040
Speaker 8: just simply take that seat. Does he have to take

618
00:33:30,120 --> 00:33:33,680
Speaker 8: the seat in order to then resign it? So does

619
00:33:33,680 --> 00:33:35,760
Speaker 8: he have to show up on January third? Just what

620
00:33:35,840 --> 00:33:37,160
Speaker 8: exactly is the proceduring.

621
00:33:38,280 --> 00:33:41,440
Speaker 10: Kaylee, good question, and we relied on Joe Morelli, who's

622
00:33:41,520 --> 00:33:44,880
Speaker 10: the Democrat who leads the House Administration Committee, and he

623
00:33:44,920 --> 00:33:48,000
Speaker 10: basically said, we don't know. We're not really been in

624
00:33:48,040 --> 00:33:50,920
Speaker 10: this position before. But it's not clear that he can

625
00:33:50,960 --> 00:33:53,080
Speaker 10: resign a seat that he's not been scorn into yet.

626
00:33:53,760 --> 00:33:57,440
Speaker 10: But if he doesn't show up, what happens then in

627
00:33:57,480 --> 00:34:00,320
Speaker 10: any case, I think an awful lot of peace people

628
00:34:00,360 --> 00:34:03,479
Speaker 10: think that whether he serves or not, that the people

629
00:34:03,600 --> 00:34:06,480
Speaker 10: have a right to know what that ethics report says,

630
00:34:07,720 --> 00:34:10,360
Speaker 10: and certainly that's the way I will vote to release it.

631
00:34:12,800 --> 00:34:15,560
Speaker 2: We did hear from the aforementioned Sean cast in a

632
00:34:15,600 --> 00:34:18,719
Speaker 2: statement following the news of Matt Gates's withdrawal. While I

633
00:34:18,800 --> 00:34:22,319
Speaker 2: welcome the news, he says it remains important that the

634
00:34:22,400 --> 00:34:26,040
Speaker 2: Gates report be made available to the American people. If

635
00:34:26,080 --> 00:34:29,600
Speaker 2: he's not serving in Congress, Don Bayer, why would that be.

636
00:34:31,320 --> 00:34:34,439
Speaker 10: Well? Part of it, Joe is the larger picture that

637
00:34:35,040 --> 00:34:40,360
Speaker 10: we have. Pete Hegseth also credibly accused of rate. We

638
00:34:40,480 --> 00:34:43,320
Speaker 10: have some I think it's in the double digits numbers

639
00:34:43,320 --> 00:34:47,120
Speaker 10: of cabinet and sub cabinet officials that are circulating right

640
00:34:47,160 --> 00:34:51,360
Speaker 10: now that have had charges a sexual assault, including RFK Junior,

641
00:34:51,760 --> 00:34:55,560
Speaker 10: that this seems to be the new qualification for Trump cabinet.

642
00:34:56,800 --> 00:34:59,919
Speaker 10: I think the more we address this directly and hope

643
00:35:00,320 --> 00:35:03,760
Speaker 10: with the clear message that we want people who are

644
00:35:04,880 --> 00:35:08,560
Speaker 10: have high integrity, that treat women with respect each other

645
00:35:08,600 --> 00:35:11,640
Speaker 10: with respect, should be part of what it means to

646
00:35:11,680 --> 00:35:15,680
Speaker 10: be a cabinet member in this United States.

647
00:35:16,320 --> 00:35:21,360
Speaker 8: Well, and as we think about women here in particular, Congressman,

648
00:35:21,400 --> 00:35:23,880
Speaker 8: I'm sure you've seen as many of us had the reports,

649
00:35:23,880 --> 00:35:26,960
Speaker 8: the police reports specifically of the incident in twenty seventeen

650
00:35:27,920 --> 00:35:31,880
Speaker 8: allegations of sexual assault regarding a different cabinet nominee, the

651
00:35:31,920 --> 00:35:35,600
Speaker 8: Defense Secretary designate Pete Hegseth. Now that some of the

652
00:35:35,640 --> 00:35:39,200
Speaker 8: scrutiny will be taken off of Matt Gates since he's

653
00:35:39,200 --> 00:35:42,719
Speaker 8: withdrawn himself from consideration, it could put a greater spotlight

654
00:35:42,760 --> 00:35:45,520
Speaker 8: on that individual in particular. Do you expect he will

655
00:35:45,560 --> 00:35:48,680
Speaker 8: face an uphill battle to send it confirmation over some

656
00:35:48,719 --> 00:35:51,439
Speaker 8: of these very same issues you were just alluding to.

657
00:35:52,920 --> 00:35:54,880
Speaker 10: Very much so, kay Lee. And it begins with the

658
00:35:54,880 --> 00:35:56,359
Speaker 10: sexual assault allegations.

659
00:35:56,640 --> 00:35:57,080
Speaker 9: Some of his.

660
00:35:59,200 --> 00:36:02,360
Speaker 10: Family pass. But it is going to quickly move on

661
00:36:02,400 --> 00:36:05,359
Speaker 10: to the fact that a National guardsman with.

662
00:36:05,520 --> 00:36:07,400
Speaker 9: Service overseas, which we very.

663
00:36:07,280 --> 00:36:12,520
Speaker 10: Much respect, has never managed an organization more than thirty people.

664
00:36:12,680 --> 00:36:15,000
Speaker 10: Moving on to one of the largest and most complicated

665
00:36:15,080 --> 00:36:18,239
Speaker 10: organizations in the world. You know, when you move in

666
00:36:18,400 --> 00:36:22,400
Speaker 10: somebody like Lloyd Austin or Jim Maddison, who have managed

667
00:36:22,719 --> 00:36:25,879
Speaker 10: in the tens of thousands, the hundreds of thousands, that's

668
00:36:25,880 --> 00:36:28,680
Speaker 10: a very different set of management leadership skills than what

669
00:36:28,760 --> 00:36:31,840
Speaker 10: Pete Hegsth has shown us so far. And what we

670
00:36:32,040 --> 00:36:37,359
Speaker 10: mostly know of him is his advocacy for returning of

671
00:36:37,520 --> 00:36:40,799
Speaker 10: Navy seal bad As to somebody who shot a handcuffed

672
00:36:40,800 --> 00:36:43,000
Speaker 10: man in the back of the head and was convicted

673
00:36:43,000 --> 00:36:43,440
Speaker 10: of murder.

674
00:36:46,239 --> 00:36:49,160
Speaker 2: I don't know anything about that, Congressman, but I do

675
00:36:49,200 --> 00:36:52,480
Speaker 2: want to ask you about the looming choice for Treasury Secretary.

676
00:36:53,160 --> 00:36:55,520
Speaker 2: Is this something that you're concerned about because it's taken

677
00:36:55,560 --> 00:36:57,719
Speaker 2: so long, even though we're pretty early in the game here.

678
00:36:57,760 --> 00:37:00,279
Speaker 2: But following the names that you've seen already, a lot

679
00:37:00,280 --> 00:37:03,520
Speaker 2: of folks with the aim of torching the agency that

680
00:37:03,560 --> 00:37:06,560
Speaker 2: they've been put in charge of have been named by

681
00:37:06,600 --> 00:37:09,799
Speaker 2: Donald Trump, to the joy of many of his supporters.

682
00:37:09,920 --> 00:37:11,520
Speaker 2: Are we going to get a name like that for

683
00:37:11,600 --> 00:37:13,000
Speaker 2: Treasury based on who you're.

684
00:37:12,880 --> 00:37:18,080
Speaker 10: Hearing, Joe, my great concern is that not so much

685
00:37:18,120 --> 00:37:20,600
Speaker 10: that a Treasury secretary will try to tear down the

686
00:37:20,719 --> 00:37:24,520
Speaker 10: US dollar, but rather that he or she will buy

687
00:37:24,600 --> 00:37:28,640
Speaker 10: into the Trump commitment to ten and twenty percent tariffs

688
00:37:29,040 --> 00:37:32,280
Speaker 10: on every one of our trading partners and sixty percent

689
00:37:32,320 --> 00:37:35,640
Speaker 10: plus on the Chinese. We've already discovered the American people

690
00:37:35,760 --> 00:37:38,480
Speaker 10: hate inflation, and yet he's about to do the most

691
00:37:38,560 --> 00:37:41,920
Speaker 10: inflationary thing possible, which is drive up consumer prices all

692
00:37:41,960 --> 00:37:45,200
Speaker 10: across our country. It'd be wonderful if you would appoint

693
00:37:45,200 --> 00:37:48,600
Speaker 10: a Treasury secretary who would be a constraint on really

694
00:37:48,640 --> 00:37:52,400
Speaker 10: bad economic policy that's coming out of the twenty twenty

695
00:37:52,400 --> 00:37:54,080
Speaker 10: five playbook and out of Donald Trump.

696
00:37:56,000 --> 00:37:58,440
Speaker 8: All right, Congressman, thank you so much for joining us

697
00:37:58,440 --> 00:38:00,919
Speaker 8: here on Bloomberg TV and radio. We appreciate your time

698
00:38:00,920 --> 00:38:05,560
Speaker 8: that as the Democratic Congressman representing Virginia's eighth district, Don Byer.

699
00:38:08,440 --> 00:38:11,719
Speaker 1: You're listening to the Bloomberg Balance of Power podcast Ken

700
00:38:11,920 --> 00:38:14,960
Speaker 1: Just Live weekdays at noon Eastern on Applecarplay and then

701
00:38:15,040 --> 00:38:17,640
Speaker 1: ron Oo with the Bloomberg Business app. You can also

702
00:38:17,680 --> 00:38:21,200
Speaker 1: listen live on Amazon Alexa from our flagship New York station,

703
00:38:21,600 --> 00:38:25,600
Speaker 1: Just say Alexa play Bloomberg eleven thirty.

704
00:38:26,320 --> 00:38:28,600
Speaker 2: Great to have you with us on Bloomberg TV and Radio.

705
00:38:28,640 --> 00:38:32,040
Speaker 2: The Thursday edition of Balance of Power Live from Washington.

706
00:38:32,080 --> 00:38:34,520
Speaker 2: It's been a pretty busy day around here with breaking news,

707
00:38:34,520 --> 00:38:35,960
Speaker 2: and the more news breaks, the more.

708
00:38:35,880 --> 00:38:36,879
Speaker 3: Questions we have.

709
00:38:37,800 --> 00:38:39,759
Speaker 2: As we learned a little more than an hour ago,

710
00:38:39,840 --> 00:38:43,719
Speaker 2: Matt Gats, former congressman from Florida, has withdrawn his name

711
00:38:43,840 --> 00:38:45,160
Speaker 2: from nomination to be the.

712
00:38:45,120 --> 00:38:46,280
Speaker 3: Next Attorney General.

713
00:38:46,320 --> 00:38:49,400
Speaker 2: This was, of course, among the most controversial of Donald

714
00:38:49,440 --> 00:38:52,880
Speaker 2: Trump's picks to fill out the cabinet. He resigned his

715
00:38:52,960 --> 00:38:55,319
Speaker 2: House seat, as we told you, upon the announcement of

716
00:38:55,320 --> 00:38:59,240
Speaker 2: that nomination last week. And so there's a concerted debate

717
00:38:59,320 --> 00:39:02,839
Speaker 2: underway right now, Kaylee lines about whether to release the

718
00:39:02,880 --> 00:39:07,640
Speaker 2: Ethics Committee report, the investigation into Matt Gate's salacious allegations

719
00:39:07,680 --> 00:39:10,920
Speaker 2: he has denied, and our next guest, who is with us,

720
00:39:10,960 --> 00:39:13,840
Speaker 2: just a couple of days ago, brought a privileged resolution

721
00:39:13,960 --> 00:39:16,879
Speaker 2: to the floor of the House to bring a full

722
00:39:16,920 --> 00:39:21,840
Speaker 2: house vote to potentially force the release of this ethics report.

723
00:39:22,120 --> 00:39:24,799
Speaker 2: We could still see this even though he is no

724
00:39:24,880 --> 00:39:25,720
Speaker 2: longer in contention.

725
00:39:26,280 --> 00:39:28,480
Speaker 8: Yeah, and that's really what we want to get into now,

726
00:39:28,520 --> 00:39:31,200
Speaker 8: as the clock has started on two legislative days, knowing

727
00:39:31,239 --> 00:39:33,560
Speaker 8: that Congress is about to embark on a week long

728
00:39:33,600 --> 00:39:36,799
Speaker 8: recess for the Thanksgiving holiday, what's going to happen when

729
00:39:36,800 --> 00:39:39,759
Speaker 8: we come back in early December. So let's turn now

730
00:39:39,800 --> 00:39:42,960
Speaker 8: to Congressman cast In Shawn Caston, of course, the Democrat

731
00:39:43,000 --> 00:39:46,480
Speaker 8: representing Illinois sixth District, to put forward this privileged resolution.

732
00:39:46,560 --> 00:39:49,759
Speaker 8: As Joe says yesterday, Congressman, thanks for coming back to

733
00:39:49,840 --> 00:39:52,360
Speaker 8: balance of power. If he is not going to be

734
00:39:52,600 --> 00:39:57,239
Speaker 8: Attorney General, having withdrawn his name from consideration here, and

735
00:39:57,280 --> 00:39:59,160
Speaker 8: if he is no longer going to be a member

736
00:39:59,200 --> 00:40:02,919
Speaker 8: of the House of Representatives, why would this report need

737
00:40:02,960 --> 00:40:05,440
Speaker 8: to come out if it's just a report looking into

738
00:40:05,680 --> 00:40:08,200
Speaker 8: what would then be a private US citizen.

739
00:40:09,600 --> 00:40:12,080
Speaker 11: Well, look, I'd put the question to you or reviewers

740
00:40:12,120 --> 00:40:16,439
Speaker 11: in any workplace, if if you and your office knew

741
00:40:16,440 --> 00:40:18,760
Speaker 11: that there was someone in the office who had serious

742
00:40:18,760 --> 00:40:22,880
Speaker 11: allegations of sexual misconduct, including sex with a minor, and

743
00:40:22,920 --> 00:40:25,600
Speaker 11: that person resigned from their office, would you be satisfied

744
00:40:25,640 --> 00:40:27,279
Speaker 11: working in that workplace if they said we're not going

745
00:40:27,320 --> 00:40:29,479
Speaker 11: to continue this anymore. It doesn't matter. It doesn't matter

746
00:40:29,480 --> 00:40:34,439
Speaker 11: what we know that would be inexcusable in any other office.

747
00:40:34,760 --> 00:40:37,120
Speaker 11: It was appropriate for it. Remember, the Ethics Committee was

748
00:40:37,160 --> 00:40:41,200
Speaker 11: prepared to release this information in July because of the recess.

749
00:40:41,239 --> 00:40:43,319
Speaker 11: They then punted that into a few weeks ago. They

750
00:40:43,400 --> 00:40:46,759
Speaker 11: then punted again, and they now, based on their vote

751
00:40:46,800 --> 00:40:49,440
Speaker 11: yesterday on a straight party line basis, the Republicans on

752
00:40:49,480 --> 00:40:52,239
Speaker 11: Committee deadlocked with the Democrats and voted to punt again.

753
00:40:54,120 --> 00:40:58,480
Speaker 11: This information should come out. We will continue to push

754
00:40:58,480 --> 00:41:00,359
Speaker 11: in our office to make sure it comes out, because

755
00:41:00,360 --> 00:41:02,359
Speaker 11: the allegations are serious, and it is in the good

756
00:41:02,400 --> 00:41:03,640
Speaker 11: of the House, and it is in the good of

757
00:41:03,640 --> 00:41:06,759
Speaker 11: making sure that the American people trust that the households

758
00:41:06,760 --> 00:41:10,000
Speaker 11: itself to account, that we know what's in this report.

759
00:41:10,920 --> 00:41:14,840
Speaker 2: Your workplace analogy having been made a congressman, I wonder

760
00:41:14,920 --> 00:41:17,480
Speaker 2: if you're also concerned about Matt Gates serving in a

761
00:41:17,480 --> 00:41:20,880
Speaker 2: different capacity in this White House, or maybe more so,

762
00:41:21,120 --> 00:41:22,920
Speaker 2: if he were to show up for one hundred and

763
00:41:23,000 --> 00:41:26,839
Speaker 2: nineteenth congrets to which he was elected and actually take

764
00:41:26,920 --> 00:41:30,239
Speaker 2: his seat back in January.

765
00:41:30,520 --> 00:41:33,400
Speaker 11: All those things are possibilities, and we can't predict the future.

766
00:41:33,920 --> 00:41:35,880
Speaker 11: All we can do is to make sure that we

767
00:41:38,440 --> 00:41:40,600
Speaker 11: we make the right moral decision in the point we're

768
00:41:40,600 --> 00:41:42,480
Speaker 11: in right now, and this one to me, to my mind,

769
00:41:42,520 --> 00:41:43,880
Speaker 11: is fairly unambiguous.

770
00:41:45,880 --> 00:41:48,120
Speaker 8: Well, so as we consider the path forward here, we

771
00:41:48,160 --> 00:41:50,440
Speaker 8: had understood the Ethics Committee was going to be meeting

772
00:41:50,480 --> 00:41:53,960
Speaker 8: again on this matter on December fifth. The ranking Democratic

773
00:41:54,000 --> 00:41:57,719
Speaker 8: member of that committee, Susan Wilde, said so herself. There's

774
00:41:57,760 --> 00:41:59,839
Speaker 8: been Congressman, as I'm sure you're well aware, a lot

775
00:41:59,840 --> 00:42:02,520
Speaker 8: of chatter in the last week about whether or not

776
00:42:02,920 --> 00:42:05,240
Speaker 8: this is going to come out either way through formal

777
00:42:05,760 --> 00:42:08,680
Speaker 8: means or otherwise. Would it be your hope if the

778
00:42:09,080 --> 00:42:11,920
Speaker 8: Ethics Committee can't find a way forward and your vote,

779
00:42:12,440 --> 00:42:15,560
Speaker 8: your privileged resolution can't force this to happen, that this

780
00:42:15,640 --> 00:42:18,640
Speaker 8: would leak out, or if the formal institutions of the

781
00:42:18,680 --> 00:42:21,840
Speaker 8: House have made it not so, should it indeed remain

782
00:42:21,880 --> 00:42:25,400
Speaker 8: a secret if that is what your colleagues decide.

783
00:42:26,040 --> 00:42:28,279
Speaker 11: Well, I think there's a series of questions there, and

784
00:42:28,320 --> 00:42:32,360
Speaker 11: let's unpack each of them. The Ethics Committee report is done.

785
00:42:33,400 --> 00:42:38,080
Speaker 11: Notwithstanding what mister Guest has said, remember that they were

786
00:42:38,120 --> 00:42:39,960
Speaker 11: prepared to vote on this in July. There was no

787
00:42:40,000 --> 00:42:43,680
Speaker 11: discussion if the report wasn't done, so the Ethics Committee

788
00:42:43,719 --> 00:42:46,400
Speaker 11: can make all of this go away by simply releasing

789
00:42:46,400 --> 00:42:48,400
Speaker 11: the report that they were prepared to release in July.

790
00:42:49,360 --> 00:42:53,040
Speaker 11: If the Ethics Committee is unable to do their ethical responsibility,

791
00:42:53,600 --> 00:42:56,520
Speaker 11: then we can use the privileged resolution that we've introduced

792
00:42:56,880 --> 00:42:59,480
Speaker 11: to compel the House to vote on that, provided that

793
00:42:59,520 --> 00:43:02,360
Speaker 11: we have the votes on the floor. And it is

794
00:43:03,719 --> 00:43:06,120
Speaker 11: tragic in the moment that we're in that we have

795
00:43:06,239 --> 00:43:10,479
Speaker 11: to wonder whether the Republicans in the House will vote

796
00:43:10,480 --> 00:43:15,879
Speaker 11: to condemn someone who's been accused of sexual misconduct. This

797
00:43:15,920 --> 00:43:18,840
Speaker 11: is the moment we're in, and that's unfortunate. The third

798
00:43:18,920 --> 00:43:22,040
Speaker 11: part of that, if those things don't happen, should it leak.

799
00:43:23,200 --> 00:43:25,200
Speaker 11: I'm not going to take a position on that. I

800
00:43:25,200 --> 00:43:27,839
Speaker 11: think it would be better for us to use formal procedures,

801
00:43:28,560 --> 00:43:30,920
Speaker 11: But we should keep in mind how we got to

802
00:43:31,000 --> 00:43:36,839
Speaker 11: this point. There were there are multiple women, it's our understanding,

803
00:43:37,000 --> 00:43:41,440
Speaker 11: who have come forth and testified anonymously to the Ethics

804
00:43:41,480 --> 00:43:46,200
Speaker 11: Committee with the understanding that they were providing reports to

805
00:43:46,200 --> 00:43:49,200
Speaker 11: an Ethics committee that would keep this in confidence. That

806
00:43:49,239 --> 00:43:53,879
Speaker 11: takes tremendous courage, right. All of those women are well

807
00:43:53,920 --> 00:43:58,040
Speaker 11: aware of what happened to Christine blazey Ford when she

808
00:43:58,160 --> 00:44:00,600
Speaker 11: came out during the Kavanaugh hearings, which is of course,

809
00:44:01,520 --> 00:44:04,600
Speaker 11: only the most recent time in memory the Donald Trump

810
00:44:04,640 --> 00:44:07,799
Speaker 11: send a candidate with allegations of sexual misconduct to the

811
00:44:07,840 --> 00:44:11,640
Speaker 11: Senate for confirmation. How much her life was upended by

812
00:44:11,680 --> 00:44:17,280
Speaker 11: being public and if this information leaks out in dribs

813
00:44:17,320 --> 00:44:20,879
Speaker 11: and drabs from other people, it makes it very hard

814
00:44:20,920 --> 00:44:23,480
Speaker 11: to make sure that we that we protect those women

815
00:44:23,840 --> 00:44:28,040
Speaker 11: and respect them. And the right way to do this again,

816
00:44:28,560 --> 00:44:30,760
Speaker 11: the way we minimize that is by the Ethics Committee

817
00:44:30,760 --> 00:44:35,480
Speaker 11: doing their job. That would be my hope, But we'll

818
00:44:35,520 --> 00:44:37,160
Speaker 11: see what happens over the next few weeks.

819
00:44:38,120 --> 00:44:40,640
Speaker 2: We're spending time with Congressman Sean Casta, the Democrat, is

820
00:44:40,719 --> 00:44:44,640
Speaker 2: leading the charge here to force the public release of

821
00:44:44,680 --> 00:44:48,560
Speaker 2: the Ethics Committee report into Matt Gates, who, if you're

822
00:44:48,600 --> 00:44:52,720
Speaker 2: just joining us, has withdrawn his name from consideration from nomination.

823
00:44:52,320 --> 00:44:53,320
Speaker 3: To be Attorney General.

824
00:44:53,360 --> 00:44:56,840
Speaker 2: Does that withdrawal, Congressman, change the vote count to the

825
00:44:56,880 --> 00:44:59,759
Speaker 2: extent that you had a sense of support for this

826
00:45:00,000 --> 00:45:03,680
Speaker 2: resolution for when you come back from Thanksgiving, does withdrawal

827
00:45:03,920 --> 00:45:09,480
Speaker 2: of Matt Gates impact the outcome of your resolution? I?

828
00:45:09,520 --> 00:45:11,680
Speaker 11: Mean, obviously, this news has come so quickly, I've not

829
00:45:11,719 --> 00:45:14,240
Speaker 11: had the time to talk with any of my Republican colleagues.

830
00:45:14,680 --> 00:45:16,360
Speaker 11: I don't think it changes the calculus run of my

831
00:45:16,400 --> 00:45:17,160
Speaker 11: Democratic College.

832
00:45:17,200 --> 00:45:18,280
Speaker 3: Did you have the votes before?

833
00:45:19,760 --> 00:45:19,920
Speaker 1: You know?

834
00:45:20,000 --> 00:45:24,360
Speaker 11: There were there were certainly Republicans that were were you know?

835
00:45:24,400 --> 00:45:26,560
Speaker 11: I think I think one came out publicly, Derek Van

836
00:45:26,680 --> 00:45:28,840
Speaker 11: Orden came out and said that he would support release

837
00:45:28,920 --> 00:45:33,600
Speaker 11: the information. There are other privately who look at this

838
00:45:33,640 --> 00:45:35,840
Speaker 11: is not betraying any confidences. There are a lot of

839
00:45:35,880 --> 00:45:39,080
Speaker 11: Republicans who don't particularly care for Matt Gates. If this

840
00:45:39,160 --> 00:45:42,200
Speaker 11: is purely about a personal question, I think that's an

841
00:45:42,200 --> 00:45:42,760
Speaker 11: open question.

842
00:45:42,840 --> 00:45:43,360
Speaker 9: I think it is.

843
00:45:43,440 --> 00:45:46,520
Speaker 11: I think it's an easy question. I think the separate

844
00:45:46,600 --> 00:45:50,520
Speaker 11: question of are there Republicans in the House who are

845
00:45:50,560 --> 00:45:54,360
Speaker 11: prepared to take actions that would be oppositional to Donald

846
00:45:54,440 --> 00:45:58,200
Speaker 11: Trump's desire? Even if Donald Trump's desire is to nominate

847
00:45:58,239 --> 00:46:03,879
Speaker 11: someone who was alleged to have committed sexual misconduct, would

848
00:46:03,880 --> 00:46:06,839
Speaker 11: they stand up to that. I don't know, But to

849
00:46:06,880 --> 00:46:10,280
Speaker 11: the extent that there's a tension between those points than one,

850
00:46:11,480 --> 00:46:15,000
Speaker 11: I suppose could speculate that it would be politically easier

851
00:46:15,840 --> 00:46:18,560
Speaker 11: for Republicans in the House to vote based on their

852
00:46:18,560 --> 00:46:21,480
Speaker 11: feelings for Matt Gates rather than based on their fear

853
00:46:21,480 --> 00:46:22,200
Speaker 11: of Donald Trump.

854
00:46:24,520 --> 00:46:27,239
Speaker 8: Well, Congressman, we appreciate you joining us on this and

855
00:46:27,239 --> 00:46:29,520
Speaker 8: look forward to seeing the outcome here of this privileged

856
00:46:29,560 --> 00:46:32,680
Speaker 8: resolution as we deal with this one piece of breaking news,

857
00:46:32,680 --> 00:46:35,160
Speaker 8: but we've gotten some other breaking news within the last

858
00:46:35,160 --> 00:46:36,759
Speaker 8: hour as well, I would love you to weigh in on.

859
00:46:36,840 --> 00:46:40,320
Speaker 8: As a member of the House Financial Services Committee, the

860
00:46:40,400 --> 00:46:43,759
Speaker 8: Chair of the SEC, Gary Gensler, has said now officially

861
00:46:44,040 --> 00:46:47,279
Speaker 8: he will be resigning on January twentieth. For many, this

862
00:46:47,320 --> 00:46:50,000
Speaker 8: will not be surprising. Donald Trump had promised to fire

863
00:46:50,080 --> 00:46:53,840
Speaker 8: him anyway. But considering your role in the Financial Services Committee,

864
00:46:54,040 --> 00:46:57,120
Speaker 8: the idea that the SEC could be critical in these

865
00:46:57,239 --> 00:47:00,840
Speaker 8: next four years and in forming the path forward for industries,

866
00:47:00,880 --> 00:47:04,279
Speaker 8: including the crypto industry, what is your hope here on

867
00:47:04,320 --> 00:47:07,319
Speaker 8: who will be selected to replace him, what kind of

868
00:47:07,320 --> 00:47:08,120
Speaker 8: person that will be.

869
00:47:10,280 --> 00:47:13,800
Speaker 11: So first, I just to have tremendous respect for Chair Gensler.

870
00:47:13,800 --> 00:47:17,200
Speaker 11: I think he's done has certainly done a lot of

871
00:47:17,239 --> 00:47:20,799
Speaker 11: work as you all know during his tenure, and I

872
00:47:20,800 --> 00:47:27,560
Speaker 11: think has been a very loud advocate for investor protection.

873
00:47:28,280 --> 00:47:32,359
Speaker 11: There is always a tension, a healthy tension within the

874
00:47:32,400 --> 00:47:35,720
Speaker 11: SEC between how far do you go towards investor protection

875
00:47:35,880 --> 00:47:39,520
Speaker 11: and how far do you go towards maximizing access to

876
00:47:39,600 --> 00:47:42,440
Speaker 11: capital markets. Everything you push in one direction hurts the other,

877
00:47:43,000 --> 00:47:47,719
Speaker 11: and vice versa. I would like to see anybody at

878
00:47:47,719 --> 00:47:53,080
Speaker 11: the SEC who understands that balance and who frankly skews

879
00:47:53,120 --> 00:47:55,759
Speaker 11: more to the investor protection side, because I've always felt that,

880
00:47:55,840 --> 00:47:59,000
Speaker 11: you know, you part of public service or any position

881
00:47:59,080 --> 00:48:02,200
Speaker 11: of powers to make, or that you're you're advocating for

882
00:48:02,280 --> 00:48:03,920
Speaker 11: the people who aren't in the room as much as

883
00:48:03,920 --> 00:48:07,319
Speaker 11: you are for the people who are, and the you know,

884
00:48:07,360 --> 00:48:09,399
Speaker 11: the work that Gensler has done to look at for

885
00:48:09,680 --> 00:48:12,880
Speaker 11: you know, for the the less sophisticated participants in our

886
00:48:12,880 --> 00:48:17,000
Speaker 11: financial markets, I think has been important. We'll see what

887
00:48:17,080 --> 00:48:19,880
Speaker 11: happens on the Trump side, but I you know, I

888
00:48:19,960 --> 00:48:23,239
Speaker 11: do I do fear that this is not an administration

889
00:48:23,320 --> 00:48:27,080
Speaker 11: that has shown nearly as much commitment to investor protection

890
00:48:27,280 --> 00:48:28,080
Speaker 11: as I would like.

891
00:48:29,440 --> 00:48:32,360
Speaker 2: Well, on the market side, it's a celebration certainly in

892
00:48:32,400 --> 00:48:34,680
Speaker 2: the crypto market. We're getting closer to one hundred thousand

893
00:48:34,719 --> 00:48:39,560
Speaker 2: dollars for bitcoin. Congressman, I know you're not necessarily guided

894
00:48:39,600 --> 00:48:41,839
Speaker 2: by the markets on this, But what does that tell

895
00:48:41,880 --> 00:48:46,280
Speaker 2: you potentially about the person who may replace Gary Gensler.

896
00:48:47,760 --> 00:48:52,879
Speaker 11: Well, look, the there is a huge problem and has

897
00:48:52,920 --> 00:48:54,960
Speaker 11: been a huge problem in the crypto sector for a

898
00:48:54,960 --> 00:48:59,239
Speaker 11: long time. That the structure of those those crypto exchanges

899
00:48:59,280 --> 00:49:02,239
Speaker 11: and markets, the use of anonymous wallets, the use of mixers,

900
00:49:02,280 --> 00:49:05,240
Speaker 11: the use of cross chain bridges. It is very easy

901
00:49:05,280 --> 00:49:08,719
Speaker 11: to cover your tracks and has been very attractive as

902
00:49:08,760 --> 00:49:12,480
Speaker 11: a result two folks who want to londer money, want

903
00:49:12,480 --> 00:49:14,960
Speaker 11: to get around know your customer rules, want to get

904
00:49:15,000 --> 00:49:18,920
Speaker 11: around finsend.

905
00:49:16,680 --> 00:49:16,759
Speaker 2: And.

906
00:49:18,480 --> 00:49:21,640
Speaker 11: Has also been been attractive to a lot of people

907
00:49:21,680 --> 00:49:24,680
Speaker 11: who want to take advantage of less sophisticated players. To

908
00:49:24,680 --> 00:49:28,799
Speaker 11: be clear, that's that's not saying that one cannot imagine

909
00:49:28,920 --> 00:49:33,719
Speaker 11: a legal use case for crypto, but a lot of

910
00:49:33,760 --> 00:49:36,480
Speaker 11: what the crypto industry has not liked about mister Gensler

911
00:49:36,560 --> 00:49:40,080
Speaker 11: is that he has been pushing for a disclosure based

912
00:49:40,080 --> 00:49:43,480
Speaker 11: regulatory environment that says, if you're going to buy and

913
00:49:43,520 --> 00:49:45,879
Speaker 11: sell something of value, you need to have the same

914
00:49:45,920 --> 00:49:49,600
Speaker 11: types of protections whether whatever that is. And we can

915
00:49:49,719 --> 00:49:52,000
Speaker 11: we can quibble about is this a you know, the

916
00:49:52,040 --> 00:49:56,759
Speaker 11: Howie test and all those sorts of issues. But the

917
00:49:56,800 --> 00:49:59,880
Speaker 11: crypto industry has clearly been pushing for a long time

918
00:50:00,120 --> 00:50:04,320
Speaker 11: to move themselves out of a disclosure based regulatory regime

919
00:50:04,320 --> 00:50:08,000
Speaker 11: at the SEC and into a purely market exchange based

920
00:50:08,040 --> 00:50:13,120
Speaker 11: regulatory structure at the CFTC, and one can't assume that

921
00:50:13,200 --> 00:50:16,840
Speaker 11: the advocacy for that move accrues to the benefit of

922
00:50:16,880 --> 00:50:18,799
Speaker 11: investors who depend on those disclosures.

923
00:50:20,239 --> 00:50:23,440
Speaker 8: Congressman, we just have a minute left here, But obviously

924
00:50:23,840 --> 00:50:27,319
Speaker 8: the current chairman of the Financial Services Committee will see

925
00:50:27,320 --> 00:50:29,360
Speaker 8: his time in Congress come to an end at the

926
00:50:29,480 --> 00:50:32,600
Speaker 8: end of this session. Is there someone you think would

927
00:50:32,640 --> 00:50:36,000
Speaker 8: best work with Democrats on a bipartisan basis as the

928
00:50:36,040 --> 00:50:38,600
Speaker 8: next chair of the Financial Services Committee? Is there a

929
00:50:38,640 --> 00:50:40,120
Speaker 8: candidate you favor for that role?

930
00:50:41,880 --> 00:50:44,480
Speaker 11: You know, in general, I think the Financial Services Committee

931
00:50:44,480 --> 00:50:48,000
Speaker 11: has done, in general, a very good job of avoiding

932
00:50:48,040 --> 00:50:52,040
Speaker 11: some of the more you know, rancorous, vitriolic debates on

933
00:50:52,080 --> 00:50:56,040
Speaker 11: some of the other committees. You know, I would say

934
00:50:56,080 --> 00:50:58,840
Speaker 11: that virtually all of the Democrats on committees on the

935
00:50:58,880 --> 00:51:03,120
Speaker 11: Committee have a very good working relationship with Franchill. A

936
00:51:03,160 --> 00:51:05,080
Speaker 11: lot of us have a good relationship with Andy Barr,

937
00:51:05,080 --> 00:51:06,680
Speaker 11: A lot of us have a very good relationship with

938
00:51:06,719 --> 00:51:11,160
Speaker 11: Frank Lucas, and we will certainly have our disagreements on

939
00:51:11,239 --> 00:51:15,200
Speaker 11: policy issues, and some of those, of course will be animated.

940
00:51:14,960 --> 00:51:17,400
Speaker 11: But I think all three of those candidates are are

941
00:51:17,480 --> 00:51:20,680
Speaker 11: candidates who have a respect for the institution and a

942
00:51:20,719 --> 00:51:22,720
Speaker 11: respect for the work of the Committee, which is important.

943
00:51:24,040 --> 00:51:25,920
Speaker 2: Congressman, it's good to have you back. Let's meet up

944
00:51:25,920 --> 00:51:29,000
Speaker 2: after Thanksgiving and see how this FOC goes. Sean Casten,

945
00:51:29,680 --> 00:51:32,239
Speaker 2: we appreciate all of your time this week, the Congressman

946
00:51:32,280 --> 00:51:39,880
Speaker 2: from Illinois sixth Thanks for listening to the Balance of

947
00:51:39,960 --> 00:51:43,480
Speaker 2: Power podcast. Make sure to subscribe if you haven't already,

948
00:51:43,480 --> 00:51:46,799
Speaker 2: at Apple, Spotify, or wherever you get your podcasts, and

949
00:51:46,880 --> 00:51:49,480
Speaker 2: you can find us live every weekday from Washington, DC

950
00:51:49,640 --> 00:51:52,320
Speaker 2: at noontime Eastern at Bloomberg dot com.