1 00:00:03,200 --> 00:00:08,240 Speaker 1: This is Bloomberg Law with June Brusso from Bloomberg Radio. 2 00:00:10,280 --> 00:00:12,200 Speaker 2: In the interest of putting this whole thing to rest, 3 00:00:12,600 --> 00:00:15,000 Speaker 2: PG and he is willing to offer the Jensens two 4 00:00:15,080 --> 00:00:16,600 Speaker 2: hundred and fifty thousand dollars for. 5 00:00:16,560 --> 00:00:19,720 Speaker 3: Their own two hundred and fifty thousand. 6 00:00:20,760 --> 00:00:24,119 Speaker 2: In terms of land value out in Hinckley. Mister Masory, 7 00:00:24,160 --> 00:00:25,840 Speaker 2: we feel that's a more than fair price. 8 00:00:26,600 --> 00:00:29,640 Speaker 4: How about in terms of medical expenses, two hundred and 9 00:00:29,680 --> 00:00:31,800 Speaker 4: fifty thousand isn't going to come close to what this 10 00:00:31,840 --> 00:00:33,519 Speaker 4: family is going to have to spend on doctors. 11 00:00:33,760 --> 00:00:38,200 Speaker 5: Attorney Tom Girardi was catapulted into the national limelight after 12 00:00:38,280 --> 00:00:42,360 Speaker 5: the two thousand Oscar winning legal drama Aaron Brockovich highlighted 13 00:00:42,400 --> 00:00:44,760 Speaker 5: his role in getting a more than three hundred million 14 00:00:44,800 --> 00:00:48,800 Speaker 5: dollars settlement against PG and E for poisoning a California 15 00:00:48,840 --> 00:00:52,199 Speaker 5: town's drinking water. He was hailed as a pioneer of 16 00:00:52,320 --> 00:00:56,960 Speaker 5: toxic tort litigation and known for extracting massive settlements for 17 00:00:57,000 --> 00:01:04,320 Speaker 5: his clients. This season, on the Real Housewives of Beverly Hills, 18 00:01:04,319 --> 00:01:07,800 Speaker 5: his fame was only enhanced as the husband bankrolling the 19 00:01:07,840 --> 00:01:12,720 Speaker 5: extravagant lifestyle of the Real housewives of Beverly Hills Erica Girardi, 20 00:01:12,840 --> 00:01:17,360 Speaker 5: whose ostentatious displays of wealth were over the top even 21 00:01:17,440 --> 00:01:18,640 Speaker 5: for a real housewife. 22 00:01:18,720 --> 00:01:22,280 Speaker 1: I'm an enigma wrapped in a riddle and cash. 23 00:01:22,560 --> 00:01:25,480 Speaker 5: But the eighty five year old man now sitting at 24 00:01:25,480 --> 00:01:29,200 Speaker 5: the defendant's table in an LA courtroom is a far 25 00:01:29,400 --> 00:01:34,160 Speaker 5: cry from that powerful lawyer. Girardi is now bankrupt, disbarred, 26 00:01:34,520 --> 00:01:37,280 Speaker 5: living in a dementia wing of a nursing home, and 27 00:01:37,440 --> 00:01:41,479 Speaker 5: on trial for stealing fifteen million dollars from his clients. 28 00:01:42,000 --> 00:01:45,119 Speaker 5: Joining me his trial attorney, David Ring of Taylor Ring 29 00:01:45,160 --> 00:01:48,480 Speaker 5: in LA. For people who might not know, tell us 30 00:01:48,520 --> 00:01:53,280 Speaker 5: about Tom Girardi. You know, the star lawyer and his reputation. 31 00:01:53,840 --> 00:01:58,120 Speaker 6: Tom Girardi was a legend in Los Angeles legal circles. 32 00:01:58,200 --> 00:02:02,960 Speaker 6: He's a plaintiff's trial lawyer. He represented victims of horrific 33 00:02:03,120 --> 00:02:07,560 Speaker 6: accidents like plane crashes and horrible automobile accents and things 34 00:02:07,640 --> 00:02:10,920 Speaker 6: like that. And he'd been a legendary trio loor in 35 00:02:10,960 --> 00:02:14,480 Speaker 6: Los Angeles since the nineteen eighties. He was as big 36 00:02:14,520 --> 00:02:18,560 Speaker 6: as it gets in Los Angeles. He was politically connected. 37 00:02:18,919 --> 00:02:22,919 Speaker 6: He was well known to be connected with the courts 38 00:02:23,040 --> 00:02:26,080 Speaker 6: and the judges, and he was a very powerful man, 39 00:02:26,240 --> 00:02:29,880 Speaker 6: and so you know, he was untouchable. He was untouchable 40 00:02:29,919 --> 00:02:33,440 Speaker 6: in Los Angeles for many, many, many years until this 41 00:02:33,600 --> 00:02:35,560 Speaker 6: scandal imploded in twenty twenty. 42 00:02:36,000 --> 00:02:38,520 Speaker 5: Tell us about the scandal that sort of opened this 43 00:02:38,720 --> 00:02:39,800 Speaker 5: Pandora's box. 44 00:02:40,320 --> 00:02:43,680 Speaker 6: What caused the downfall of Tom Girardi in his law firm. 45 00:02:43,880 --> 00:02:47,640 Speaker 6: It all started with a particular lawsuit, the Lion air 46 00:02:48,120 --> 00:02:51,400 Speaker 6: plane crash, which happened in Jakarta, and Tom Girardi in 47 00:02:51,480 --> 00:02:55,400 Speaker 6: his firm, they would represent victims in big airplane crashes 48 00:02:55,480 --> 00:02:58,639 Speaker 6: like that, even if the crash happened halfway across the world. 49 00:02:58,880 --> 00:03:02,919 Speaker 6: And that litigation was centered in Chicago in federal court, 50 00:03:03,160 --> 00:03:05,640 Speaker 6: and ultimately it was settled. You know, Boeing and some 51 00:03:05,720 --> 00:03:09,120 Speaker 6: other defendants paid a lot of money, and Tom Girardi 52 00:03:09,240 --> 00:03:12,919 Speaker 6: represented families who had lost loved ones in that plane crash. 53 00:03:13,160 --> 00:03:17,080 Speaker 6: Now he had a co council in Chicago, Chicago firm, 54 00:03:17,240 --> 00:03:20,760 Speaker 6: and when the settlement was reached and the money was 55 00:03:20,800 --> 00:03:25,000 Speaker 6: paid by the defendants, Tom Girardi's firm didn't pay his clients, 56 00:03:25,360 --> 00:03:29,200 Speaker 6: one excuse after another. The firm in Chicago started to 57 00:03:29,200 --> 00:03:32,240 Speaker 6: get very, very upset because clients are supposed to be 58 00:03:32,240 --> 00:03:34,880 Speaker 6: paid out right away. And so this firm in Chicago 59 00:03:35,240 --> 00:03:37,760 Speaker 6: went to federal court and said, there is some suspicious 60 00:03:37,800 --> 00:03:40,760 Speaker 6: going on here. Tom Girardi's firm is not paying out 61 00:03:40,840 --> 00:03:44,120 Speaker 6: money that they have received to the clients. And the 62 00:03:44,120 --> 00:03:48,880 Speaker 6: federal court judge got very involved, went ballistic, and basically 63 00:03:49,480 --> 00:03:52,000 Speaker 6: some ined Tom Girardi and others to court and it 64 00:03:52,080 --> 00:03:55,120 Speaker 6: all unfolded there because it was a house of cards 65 00:03:55,400 --> 00:03:57,400 Speaker 6: and it all fell apart at that point, and it 66 00:03:57,440 --> 00:04:01,640 Speaker 6: became clear that Tom Girardi had been stealing money from 67 00:04:01,760 --> 00:04:03,080 Speaker 6: clients and from his firm. 68 00:04:03,280 --> 00:04:06,880 Speaker 5: Will you explain the basics of the prosecution's case against 69 00:04:07,000 --> 00:04:08,360 Speaker 5: him in the LA trial. 70 00:04:08,960 --> 00:04:12,880 Speaker 6: Tom Girardi is being prosecuted for wire fraud, and the 71 00:04:12,880 --> 00:04:16,839 Speaker 6: wire fraud involves, you know, four or five clients. Look, 72 00:04:16,920 --> 00:04:19,080 Speaker 6: he defraud a whole lot more than four or five 73 00:04:19,160 --> 00:04:22,200 Speaker 6: clients over at the years, but the US Attorney's Office 74 00:04:22,279 --> 00:04:25,039 Speaker 6: in Los Angeles has narrowed it down to about four 75 00:04:25,120 --> 00:04:29,320 Speaker 6: or five families who basically had their funds, their settlements 76 00:04:29,360 --> 00:04:30,640 Speaker 6: stolen by Tom Girardi. 77 00:04:30,720 --> 00:04:30,839 Speaker 7: You know. 78 00:04:30,960 --> 00:04:35,600 Speaker 6: So he's accused of misappropriation of client funds and wire fraud, 79 00:04:35,839 --> 00:04:40,039 Speaker 6: and the amounting question this trial is about fifteen million dollars. Again, 80 00:04:40,279 --> 00:04:43,880 Speaker 6: you look at the long term wrongdoings by mister Girardi 81 00:04:43,960 --> 00:04:47,120 Speaker 6: and he absconded with a whole lot more than fifteen million. 82 00:04:47,320 --> 00:04:51,000 Speaker 6: And prosecution is close to resting their case. And they've 83 00:04:51,040 --> 00:04:56,400 Speaker 6: put on these victims who have explained how they weren't 84 00:04:56,400 --> 00:04:59,000 Speaker 6: given their settlement funds and all the excuses they were 85 00:04:59,000 --> 00:05:01,760 Speaker 6: given over time. And they've also had witnesses who are 86 00:05:01,800 --> 00:05:05,200 Speaker 6: the lawyers for these victims after the fact, who tried 87 00:05:05,200 --> 00:05:07,279 Speaker 6: to help them get the money from Girardi, you know, 88 00:05:07,320 --> 00:05:09,479 Speaker 6: when they weren't being paid, and these lawyers come in say, 89 00:05:09,520 --> 00:05:11,279 Speaker 6: the excuses we got were absurd. 90 00:05:12,040 --> 00:05:15,840 Speaker 5: Is it basically like a Ponzi scheme that he allegedly operated. 91 00:05:16,520 --> 00:05:21,000 Speaker 6: I equate Tom Girardi to Bernie Madoff, the same type 92 00:05:21,000 --> 00:05:24,719 Speaker 6: of personality, the same type of long running fraud, just 93 00:05:24,800 --> 00:05:29,440 Speaker 6: the absolute despicable conduct of stealing from your own clients 94 00:05:29,480 --> 00:05:32,920 Speaker 6: who you have a duty of loyalty to. And so yeah, 95 00:05:33,080 --> 00:05:36,599 Speaker 6: it basically was a Ponzi scheme. What Tom Girardi apparently 96 00:05:36,680 --> 00:05:40,760 Speaker 6: was doing was he spent extravagantly. We all know he 97 00:05:40,839 --> 00:05:43,760 Speaker 6: is married to Erica Jane from the Real Housewives and 98 00:05:43,800 --> 00:05:47,160 Speaker 6: the amount of money that was flowing from Tom for 99 00:05:47,279 --> 00:05:51,280 Speaker 6: his lifestyle and for Erica Jane's lifestyle, and so settlement 100 00:05:51,320 --> 00:05:54,120 Speaker 6: would come in, it would go into the Girardi and 101 00:05:54,200 --> 00:05:57,880 Speaker 6: Keys client trust fund, and Tom Girardi would take some 102 00:05:58,520 --> 00:06:02,000 Speaker 6: or all of it for his own personal, improper purposes 103 00:06:02,200 --> 00:06:04,960 Speaker 6: and then would lie to the client the money didn't 104 00:06:05,000 --> 00:06:08,279 Speaker 6: come in yet. Oh there's a hold up. Oh it's 105 00:06:08,320 --> 00:06:11,520 Speaker 6: being taxed, all sorts of stories not to pay them out. 106 00:06:11,640 --> 00:06:14,200 Speaker 6: Then when another big settlement came in, Okay, he might 107 00:06:14,240 --> 00:06:16,600 Speaker 6: pay out the person who'd been complaining for a year 108 00:06:16,640 --> 00:06:19,240 Speaker 6: or two, But now he'd stiff that client from their 109 00:06:19,279 --> 00:06:22,119 Speaker 6: settlement funds, and so yeah, basically a Ponzi scheme. 110 00:06:22,600 --> 00:06:27,680 Speaker 5: The prosecution is painting him as a celebrity attorney turned villain. 111 00:06:28,040 --> 00:06:31,120 Speaker 5: But the defendant sitting there in the courtroom is this 112 00:06:31,320 --> 00:06:36,040 Speaker 5: eighty five year old in mental decline. He's been diagnosed 113 00:06:36,080 --> 00:06:39,440 Speaker 5: with dementia, lives in a nursing home. So might the 114 00:06:39,520 --> 00:06:42,720 Speaker 5: jury feel sympathy for him or say why are they 115 00:06:42,760 --> 00:06:44,640 Speaker 5: going after him at this point? 116 00:06:44,880 --> 00:06:48,440 Speaker 6: Here's how that plays out in this particular Los Angeles trial. 117 00:06:48,480 --> 00:06:51,760 Speaker 6: The crimes that Tom Grady's being accused of committing date 118 00:06:51,800 --> 00:06:54,640 Speaker 6: back to twenty ten, and there's no evidence that he 119 00:06:54,680 --> 00:06:58,200 Speaker 6: had any real mental decline until about twenty twenty. So 120 00:06:58,279 --> 00:07:02,599 Speaker 6: he was perfectly fity ten through twenty twenty. He was 121 00:07:02,640 --> 00:07:07,640 Speaker 6: in courts, he was given speeches, he was politicians, fundraisers, 122 00:07:07,760 --> 00:07:10,880 Speaker 6: He was in perfect mental health between twenty ten and 123 00:07:10,920 --> 00:07:14,200 Speaker 6: twenty twenty when some of these crimes were committed, And 124 00:07:14,240 --> 00:07:17,480 Speaker 6: it really was only in twenty twenty when, yeah, he 125 00:07:17,560 --> 00:07:21,200 Speaker 6: absolutely did have some sort of mental decline, And now 126 00:07:21,240 --> 00:07:24,680 Speaker 6: they say he has early on Alzheimer's or dementia, and 127 00:07:24,720 --> 00:07:27,160 Speaker 6: he does not look well at all in court. But 128 00:07:27,680 --> 00:07:30,880 Speaker 6: what the prosecution will do and has done, is say, 129 00:07:31,080 --> 00:07:33,080 Speaker 6: can't look at this man for what he is right 130 00:07:33,120 --> 00:07:35,640 Speaker 6: now here today, look at what he's done over the 131 00:07:35,680 --> 00:07:39,040 Speaker 6: past fifteen years, back to twenty ten, when he was 132 00:07:39,160 --> 00:07:41,320 Speaker 6: absolutely positively competent. 133 00:07:41,600 --> 00:07:47,120 Speaker 5: The defense is blaming the XCFO Christopher Cayman, who's charge 134 00:07:47,160 --> 00:07:51,000 Speaker 5: with fraud for allegedly stealing from both client accounts and 135 00:07:51,080 --> 00:07:55,160 Speaker 5: the firm's operating fund. A judge has split Girardi's trial 136 00:07:55,280 --> 00:08:00,200 Speaker 5: from Cayman's, so that's quite advantageous to Girardi's defense is 137 00:08:00,640 --> 00:08:03,880 Speaker 5: his lyric and point at Cayman as the real villain here. 138 00:08:04,560 --> 00:08:08,240 Speaker 6: Yes, so Tom Girardi really has two main points in 139 00:08:08,280 --> 00:08:11,960 Speaker 6: his defense. One is that, oh, you know, he was unfit, 140 00:08:12,120 --> 00:08:15,800 Speaker 6: he was mentally declining, he had dementia, He didn't know 141 00:08:15,840 --> 00:08:18,840 Speaker 6: what he was doing. He couldn't have controlled these accounts 142 00:08:18,960 --> 00:08:21,520 Speaker 6: or this money because he really couldn't even handle his 143 00:08:21,560 --> 00:08:24,440 Speaker 6: own data day activities. That's a big part of their defense. 144 00:08:24,520 --> 00:08:27,040 Speaker 6: And the other part is what you mentioned that the 145 00:08:27,120 --> 00:08:30,560 Speaker 6: law firm Girardi and Keith had a chief financial officer 146 00:08:30,640 --> 00:08:34,640 Speaker 6: named Chris Cayman, and mister Caymen is separately charged from 147 00:08:34,679 --> 00:08:38,160 Speaker 6: mister Girardi for crimes that mister Cayman committed, and so 148 00:08:38,360 --> 00:08:42,200 Speaker 6: absolutely in this case, Tom Girardi's defense is to point 149 00:08:42,200 --> 00:08:44,880 Speaker 6: the finger at Chris Cayman, the CFO, and say, you 150 00:08:44,920 --> 00:08:47,840 Speaker 6: know what, he's the guy who is stealing the money. 151 00:08:48,080 --> 00:08:50,920 Speaker 6: He's the guy who you know, wreaked havoc on the 152 00:08:51,000 --> 00:08:55,360 Speaker 6: law firm's financial resources and the client trust accounts. The 153 00:08:55,520 --> 00:08:59,040 Speaker 6: problem with that is that it's going to become pretty 154 00:08:59,160 --> 00:09:03,040 Speaker 6: clear at the CFO Chris came in, he was conducting 155 00:09:03,040 --> 00:09:06,440 Speaker 6: what they've called is a side fraud. He knew that 156 00:09:06,520 --> 00:09:10,080 Speaker 6: Girardi was playing Shenanigans with all the money. I mean, 157 00:09:10,120 --> 00:09:12,520 Speaker 6: he was a CFO. He knew what was going on, 158 00:09:12,760 --> 00:09:15,280 Speaker 6: and he knew he could get away with from pzzling money. 159 00:09:15,320 --> 00:09:18,520 Speaker 6: And so what he did He saw this firm in disarray, 160 00:09:18,760 --> 00:09:21,440 Speaker 6: knew what Girardi was doing, so he started to steal 161 00:09:21,520 --> 00:09:24,480 Speaker 6: money on his own. And that's going to be a 162 00:09:24,559 --> 00:09:28,040 Speaker 6: separate trial down the road against mister Cayman, who had 163 00:09:28,040 --> 00:09:30,480 Speaker 6: fled the country and they brought him back here. But 164 00:09:30,640 --> 00:09:34,640 Speaker 6: it certainly gives Tom Girardi's lawyers some arguments in this 165 00:09:34,679 --> 00:09:37,880 Speaker 6: particular trial. My personal opinion, I don't think it's going 166 00:09:37,920 --> 00:09:39,440 Speaker 6: to carry the day for Tom Girardi. 167 00:09:39,800 --> 00:09:42,480 Speaker 5: Apparently there is some evidence coming in. On the fifth 168 00:09:42,600 --> 00:09:46,040 Speaker 5: day of the trial, there was testimony about a secret 169 00:09:46,080 --> 00:09:49,560 Speaker 5: bank account that was hidden from Girardi. So the defense 170 00:09:49,760 --> 00:09:54,160 Speaker 5: is looking at that as evidence showing that Girardi wasn't 171 00:09:54,160 --> 00:09:56,480 Speaker 5: aware of all that was going on at the firm. 172 00:09:56,840 --> 00:10:00,680 Speaker 6: Tell you what, this very very very interesting development in 173 00:10:00,800 --> 00:10:03,920 Speaker 6: the case, this secret bank account, and we don't know 174 00:10:03,960 --> 00:10:06,520 Speaker 6: a lot about it yet. It really just surfaced for 175 00:10:06,559 --> 00:10:09,640 Speaker 6: the first time in the media at least in this lawsuit. 176 00:10:09,679 --> 00:10:12,320 Speaker 6: No one had really heard about this secret bank account before. 177 00:10:12,520 --> 00:10:16,000 Speaker 6: But what it appears to have been is part of 178 00:10:16,280 --> 00:10:21,720 Speaker 6: perhaps Chris came in side fraud where someone set up 179 00:10:21,760 --> 00:10:25,800 Speaker 6: another bank account and a different bank than the law 180 00:10:25,840 --> 00:10:30,000 Speaker 6: firm routinely used, and was siphoning money over to this 181 00:10:30,120 --> 00:10:32,680 Speaker 6: other bank account, and we don't really know why. We 182 00:10:32,760 --> 00:10:34,520 Speaker 6: do know that checks were written out of it, we 183 00:10:34,600 --> 00:10:36,840 Speaker 6: know clients were paid money out of it, but we 184 00:10:36,920 --> 00:10:40,520 Speaker 6: also know that didn't really start until close to twenty 185 00:10:40,679 --> 00:10:43,600 Speaker 6: nineteen or twenty twenty. And so again you got to 186 00:10:43,640 --> 00:10:46,199 Speaker 6: go back and look at the crimes that are ledged 187 00:10:46,240 --> 00:10:49,000 Speaker 6: against Girardi and those days all the way back to 188 00:10:49,080 --> 00:10:52,680 Speaker 6: twenty ten in this case. So again, this secret bank 189 00:10:52,679 --> 00:10:56,720 Speaker 6: account very interesting, raises eyebrows for sure, but I don't 190 00:10:56,720 --> 00:10:58,760 Speaker 6: think it's enough to get Tom Girardi off. 191 00:10:59,360 --> 00:11:03,200 Speaker 5: And there were more two hundred misconduct complaints filed against 192 00:11:03,280 --> 00:11:07,439 Speaker 5: Girardi before the State Bar of California over four decades, 193 00:11:07,840 --> 00:11:10,880 Speaker 5: yet he managed to avoid any disciplinary action until I 194 00:11:10,880 --> 00:11:13,720 Speaker 5: think about twenty twenty two. And the parents of a 195 00:11:13,760 --> 00:11:17,239 Speaker 5: boy who died of cancer who was represented by Girardi 196 00:11:17,679 --> 00:11:21,920 Speaker 5: have filed a class action lawsuit against the California State 197 00:11:22,000 --> 00:11:26,960 Speaker 5: Bar alleging gross negligence and reckless misconduct. What's your take 198 00:11:27,000 --> 00:11:27,720 Speaker 5: on that case. 199 00:11:28,280 --> 00:11:31,600 Speaker 6: I think it's definitely got legs. There has been a 200 00:11:31,640 --> 00:11:35,080 Speaker 6: lot that has come out against the California State Bar 201 00:11:35,280 --> 00:11:39,400 Speaker 6: since this Girardi scandal erupted four years ago, and it's 202 00:11:39,640 --> 00:11:43,720 Speaker 6: absolutely mind numbing and despicable what has been shown. This 203 00:11:43,760 --> 00:11:46,839 Speaker 6: shows you how powerful Tom Girardi was. Tom Girardi had 204 00:11:46,880 --> 00:11:50,200 Speaker 6: the state bar wrapped around his finger. Tom Girardi had 205 00:11:50,440 --> 00:11:53,880 Speaker 6: so many complaints made against him over the course of 206 00:11:54,080 --> 00:11:57,319 Speaker 6: twenty or thirty years, and how did he get away 207 00:11:57,360 --> 00:12:00,719 Speaker 6: with that? He was the ultimate mastermind. This guy had 208 00:12:00,800 --> 00:12:06,000 Speaker 6: so many connections. He actually placed an investigator in the 209 00:12:06,120 --> 00:12:11,000 Speaker 6: state Bar office who was there handling complaints against Gerbarti. 210 00:12:11,240 --> 00:12:13,760 Speaker 6: Tom Girardi was very close with some of these state 211 00:12:13,800 --> 00:12:17,640 Speaker 6: bar judges. And so the system, now that we've seen 212 00:12:17,679 --> 00:12:21,000 Speaker 6: it exposed for what it was. It was a sham 213 00:12:21,240 --> 00:12:24,760 Speaker 6: and Tom Girardi manipulated the state bar system and he 214 00:12:24,840 --> 00:12:28,080 Speaker 6: got away with it for thirty plus years despite having 215 00:12:28,400 --> 00:12:31,640 Speaker 6: hundreds of complaints made against him, and not one thing 216 00:12:31,720 --> 00:12:33,559 Speaker 6: was ever done to him. Shameful. 217 00:12:33,880 --> 00:12:36,120 Speaker 5: We'll see what the jury decides in this case. Thanks 218 00:12:36,160 --> 00:12:40,000 Speaker 5: so much, David. That's LA trial attorney David Ring. I'm 219 00:12:40,080 --> 00:12:42,280 Speaker 5: June Grosso and you're listening to Bloomberg. 220 00:12:42,800 --> 00:12:46,080 Speaker 4: Starting today, we're Cansiley student Debtford borrowers who are enrolled 221 00:12:46,080 --> 00:12:49,280 Speaker 4: in the Save Plan and have been paying student loans 222 00:12:49,440 --> 00:12:51,280 Speaker 4: for as little as ten years. 223 00:12:51,600 --> 00:12:55,800 Speaker 5: Back in February, President Biden unveiled the Save Plan, a 224 00:12:55,880 --> 00:12:59,800 Speaker 5: student loan repayment program that ties how much someone pays 225 00:12:59,800 --> 00:13:04,720 Speaker 5: he month to their income. Education Secretary Miguel Cardona said 226 00:13:04,720 --> 00:13:07,360 Speaker 5: the program is targeted to certain borrowers. 227 00:13:07,760 --> 00:13:10,080 Speaker 8: These are people that took out loans of twelve thousand 228 00:13:10,120 --> 00:13:13,680 Speaker 8: dollars or less, smaller loans. We know that these folks 229 00:13:13,720 --> 00:13:16,680 Speaker 8: are more likely to go into default, so that's the 230 00:13:16,720 --> 00:13:19,360 Speaker 8: group we targeted with this debt relief announcement. 231 00:13:19,559 --> 00:13:23,400 Speaker 5: But eight million borrowers enrolled in Save have endured the 232 00:13:23,559 --> 00:13:27,120 Speaker 5: chaos of conflicting up and down legal rulings on the 233 00:13:27,200 --> 00:13:30,520 Speaker 5: viability of the program. That's because more than a dozen 234 00:13:30,600 --> 00:13:36,120 Speaker 5: Republican led states filed lawsuits challenging the plan in two jurisdictions, 235 00:13:36,320 --> 00:13:39,440 Speaker 5: Kansas and Missouri, and now the Eighth Circuit Court of 236 00:13:39,440 --> 00:13:44,000 Speaker 5: Appeals in Missouri has issued an extraordinary sweeping order blocking 237 00:13:44,040 --> 00:13:49,040 Speaker 5: the program everywhere while litigation proceeds. This conflicts with a 238 00:13:49,120 --> 00:13:53,360 Speaker 5: decision from the Tenth Circuit in Colorado. On Tuesday, the 239 00:13:53,360 --> 00:13:57,720 Speaker 5: Biden administration filed an emergency petition at the Supreme Court 240 00:13:57,960 --> 00:14:01,920 Speaker 5: asking the justices to reinstead the Save Plan joining me 241 00:14:02,000 --> 00:14:06,600 Speaker 5: is constitutional law Professor Michael Dorf of Cornell Law School, Mike, 242 00:14:06,760 --> 00:14:09,920 Speaker 5: is the Safe Plan different from the Biden student loan 243 00:14:10,000 --> 00:14:14,240 Speaker 5: relief plan the Supreme Court throughout in July of last year? 244 00:14:14,880 --> 00:14:17,760 Speaker 7: Yes, I mean it had some different details in terms 245 00:14:17,760 --> 00:14:20,040 Speaker 7: of who is eligible and what you had do to file. 246 00:14:20,520 --> 00:14:24,440 Speaker 7: But the more important piece in terms of the legal 247 00:14:24,600 --> 00:14:27,840 Speaker 7: aspect is that it relied on a different set of 248 00:14:27,880 --> 00:14:29,120 Speaker 7: statutory authorities. 249 00:14:29,600 --> 00:14:32,800 Speaker 5: So a three judge panel of the Eighth Circuit with 250 00:14:32,960 --> 00:14:37,560 Speaker 5: three Republican appointees called the plan a vast assertion of 251 00:14:37,640 --> 00:14:40,280 Speaker 5: newfound power. Tell us about their decision. 252 00:14:40,680 --> 00:14:44,080 Speaker 7: So the court had two issues to decide. It first 253 00:14:44,160 --> 00:14:48,520 Speaker 7: needed to decide whether there was standing for the plaintiffs, 254 00:14:48,560 --> 00:14:51,800 Speaker 7: which were a bunch of states that were basically led 255 00:14:51,840 --> 00:14:55,120 Speaker 7: by Republicans, And there it essentially relied on the Supreme 256 00:14:55,160 --> 00:14:58,000 Speaker 7: Court case because Missouri is one of the plaintiffs in 257 00:14:58,040 --> 00:15:00,840 Speaker 7: the earlier case. The Supreme courts had that Missouri had 258 00:15:00,920 --> 00:15:06,440 Speaker 7: standing because this corporation that Missouri had chartered to process loans, 259 00:15:06,600 --> 00:15:09,320 Speaker 7: known as Mohila, could suffer legal injury, and that injury 260 00:15:09,320 --> 00:15:12,880 Speaker 7: would be translated to the state. The censer on that 261 00:15:12,880 --> 00:15:14,640 Speaker 7: point in the Supreme Court. But that's sort of what 262 00:15:14,680 --> 00:15:16,240 Speaker 7: are under the bridge, So there was really no issue 263 00:15:16,240 --> 00:15:19,440 Speaker 7: about standing for the Eighth Circuit to decide. The heart 264 00:15:19,440 --> 00:15:24,680 Speaker 7: of the matter was whether this was something authorized by 265 00:15:24,760 --> 00:15:27,680 Speaker 7: an Act of Congress, and the Biden administration had a 266 00:15:27,720 --> 00:15:31,040 Speaker 7: decent argument that if you read the literal text of 267 00:15:31,080 --> 00:15:33,680 Speaker 7: the statute, it does seem to give the Secretary of 268 00:15:33,760 --> 00:15:40,360 Speaker 7: Education broad discretion to modify loans to delay payments, including 269 00:15:40,400 --> 00:15:41,080 Speaker 7: on principle. 270 00:15:41,320 --> 00:15:43,040 Speaker 3: But the Court said two things. 271 00:15:43,200 --> 00:15:45,880 Speaker 7: First, they said, well, there are other parts of the 272 00:15:45,920 --> 00:15:51,200 Speaker 7: same statutory's team that expressly grant to the Department of 273 00:15:51,320 --> 00:15:56,360 Speaker 7: Education the authority to forgive loans, and given that Congress 274 00:15:56,400 --> 00:16:00,600 Speaker 7: did those expressly, it's unlikely that Congress would have intended 275 00:16:00,720 --> 00:16:04,360 Speaker 7: for the Secretary of Education in this more general language 276 00:16:04,800 --> 00:16:08,000 Speaker 7: to be able to forgive loans. The second thing they 277 00:16:08,040 --> 00:16:11,800 Speaker 7: said was the language you quoted, which is that in 278 00:16:11,840 --> 00:16:15,360 Speaker 7: the last few years, the Supreme Court, and especially to 279 00:16:15,640 --> 00:16:19,120 Speaker 7: Justice Roberts, have relied on something that has come to 280 00:16:19,160 --> 00:16:21,760 Speaker 7: be known as the major questions doctrine, and the basic 281 00:16:21,800 --> 00:16:24,880 Speaker 7: idea there is that if an agency is going to 282 00:16:24,920 --> 00:16:28,600 Speaker 7: be exercising power over a very large part of the 283 00:16:28,680 --> 00:16:33,160 Speaker 7: economy or our social life, then you need to find 284 00:16:33,480 --> 00:16:37,680 Speaker 7: authorization for the agency to do so in the express 285 00:16:37,840 --> 00:16:40,040 Speaker 7: language of Congress. So it's kind of what someone is 286 00:16:40,040 --> 00:16:42,880 Speaker 7: called a clear statement rule. Although there's some debate among 287 00:16:42,920 --> 00:16:46,200 Speaker 7: administrative law scholars and even by Justice Barrett questioning whether 288 00:16:46,240 --> 00:16:48,720 Speaker 7: that's exactly how to understand it. But in any event, 289 00:16:49,080 --> 00:16:51,160 Speaker 7: that's what the Eighth Circuit said. They said, Look, this 290 00:16:51,360 --> 00:16:54,240 Speaker 7: is just not the kind of thing that Congress has 291 00:16:54,280 --> 00:16:57,000 Speaker 7: given you power to do. Maybe Congress could do that, 292 00:16:57,120 --> 00:16:59,520 Speaker 7: maybe Congress could do it itself, but they haven't done it. 293 00:17:00,000 --> 00:17:02,840 Speaker 5: Where do issue the injunction? Did the Eighth Circuit find 294 00:17:02,880 --> 00:17:06,920 Speaker 5: that there was irreparable injury to the Republican States here? 295 00:17:07,320 --> 00:17:07,520 Speaker 4: Yeah? 296 00:17:07,520 --> 00:17:11,520 Speaker 7: Well, so that's the interesting thing. Yes, although the core 297 00:17:11,800 --> 00:17:15,160 Speaker 7: of the decision in the Court says this is likelihood 298 00:17:15,160 --> 00:17:17,760 Speaker 7: of success on the merit, of course, it's really kind 299 00:17:17,800 --> 00:17:20,200 Speaker 7: of hard to see how there's an irreparable injury to 300 00:17:20,320 --> 00:17:22,600 Speaker 7: Missouri because they're going to be collecting a little bit 301 00:17:22,680 --> 00:17:26,080 Speaker 7: less in interest through this entity that they've created to 302 00:17:26,160 --> 00:17:30,360 Speaker 7: process loans, but that there is not a reparable injury 303 00:17:30,480 --> 00:17:34,640 Speaker 7: to the millions of borrowers who now have to pay 304 00:17:34,680 --> 00:17:36,520 Speaker 7: off these student loans when they thought they were going 305 00:17:36,520 --> 00:17:39,359 Speaker 7: to be eligible for some forgiveness. Court doesn't say that 306 00:17:39,400 --> 00:17:43,159 Speaker 7: the borrowers don't have an injury or even an irreparable injury. 307 00:17:43,240 --> 00:17:45,359 Speaker 7: But the Court doesn't really get to the question of 308 00:17:45,640 --> 00:17:46,320 Speaker 7: balancing of. 309 00:17:46,320 --> 00:17:48,760 Speaker 3: The equities, which is typically the last. 310 00:17:48,400 --> 00:17:51,280 Speaker 7: Step in one of these decisions, whether the grade in 311 00:17:51,359 --> 00:17:52,000 Speaker 7: junctior belief. 312 00:17:52,320 --> 00:17:57,080 Speaker 5: Republican attorneys general filed separate lawsuits over the Safe Plan, 313 00:17:57,240 --> 00:18:01,480 Speaker 5: this one and one filed in Kansas. The Tenth Circuit 314 00:18:01,840 --> 00:18:06,320 Speaker 5: said the plan could take effect while the court battle continues. 315 00:18:06,400 --> 00:18:09,840 Speaker 5: So now you have an Eighth Circuit decision contrary to 316 00:18:09,880 --> 00:18:13,160 Speaker 5: the Tenth Circuit decision. Does this mean that the Supreme 317 00:18:13,240 --> 00:18:15,159 Speaker 5: Court is going to take up the case? 318 00:18:15,800 --> 00:18:16,359 Speaker 7: Presumably? 319 00:18:16,480 --> 00:18:16,720 Speaker 3: Yes. 320 00:18:16,800 --> 00:18:19,080 Speaker 7: You know what interesting about this case and so many 321 00:18:19,080 --> 00:18:22,320 Speaker 7: other Supreme Court hears these days, is there hasn't been 322 00:18:22,320 --> 00:18:24,480 Speaker 7: a trial. This is on a preliminary in junction, and 323 00:18:24,520 --> 00:18:26,120 Speaker 7: maybe you don't need a trial because it's really. 324 00:18:25,920 --> 00:18:27,080 Speaker 3: Just a pure question of law. 325 00:18:27,440 --> 00:18:31,440 Speaker 7: But it's technically what they were doing was addressing whether 326 00:18:31,480 --> 00:18:35,080 Speaker 7: to keep a stay pending appeal in place or to 327 00:18:35,160 --> 00:18:38,960 Speaker 7: modify it. But the bottom line of the Eighth Circuit 328 00:18:39,040 --> 00:18:44,880 Speaker 7: ruling is that the program is enjoined indefinitely pending Supreme 329 00:18:44,920 --> 00:18:49,679 Speaker 7: Court reversal or potentially I suppose the case could go 330 00:18:49,680 --> 00:18:51,560 Speaker 7: back to the district court and somehow the district court 331 00:18:51,600 --> 00:18:53,919 Speaker 7: could find the case comes out the other way, but 332 00:18:54,160 --> 00:18:57,000 Speaker 7: you know that would result in reversal almost immediately because 333 00:18:57,119 --> 00:19:00,240 Speaker 7: here likelihood of success in the merits means we think 334 00:19:00,359 --> 00:19:03,120 Speaker 7: the merits favor the challengers, meaning the state. 335 00:19:03,560 --> 00:19:07,840 Speaker 5: The Biden administration has tried all kinds of loan forgiveness 336 00:19:07,880 --> 00:19:12,399 Speaker 5: plans to get around the Supreme Court's decision, and it 337 00:19:12,440 --> 00:19:16,200 Speaker 5: appears they're gearing up for another one come fall, because 338 00:19:16,200 --> 00:19:19,919 Speaker 5: the Education Department has email borrowers to let it know 339 00:19:20,080 --> 00:19:22,840 Speaker 5: by August thirtieth if they want to opt out of 340 00:19:22,880 --> 00:19:26,240 Speaker 5: any future programs. I mean, is there any point anymore 341 00:19:26,280 --> 00:19:29,720 Speaker 5: for the Biden administration to keep trying The plans just 342 00:19:29,760 --> 00:19:30,960 Speaker 5: get blocked by courts. 343 00:19:31,359 --> 00:19:33,399 Speaker 7: Well, you know, it depends on what you mean by 344 00:19:33,400 --> 00:19:37,600 Speaker 7: a point, right, If the point is to actually deliver 345 00:19:38,080 --> 00:19:42,399 Speaker 7: debt forgiveness to borrowers, probably not. You know, you would 346 00:19:42,480 --> 00:19:46,720 Speaker 7: think that if you want to deliver that forgiveness through 347 00:19:46,920 --> 00:19:50,600 Speaker 7: existing statutory authority for one of the federal agencies, you 348 00:19:50,600 --> 00:19:54,880 Speaker 7: would start with the strongest case for doing so, And 349 00:19:55,400 --> 00:19:58,840 Speaker 7: you know, the backups tend to have somewhat weaker arguments. 350 00:19:58,880 --> 00:20:03,080 Speaker 7: Although I will say that the argument for the programmer 351 00:20:03,200 --> 00:20:07,159 Speaker 7: was just struck down didn't rely on the kind of 352 00:20:07,200 --> 00:20:11,800 Speaker 7: emergency theory that the previous one did. So it's possible 353 00:20:12,320 --> 00:20:15,120 Speaker 7: that they will eventually hit upon something that the Supreme 354 00:20:15,160 --> 00:20:18,160 Speaker 7: Court and the lower federal courts accept. I just think 355 00:20:18,240 --> 00:20:19,680 Speaker 7: it's not very likely. 356 00:20:20,280 --> 00:20:24,359 Speaker 5: So you think that practically speaking, there'll be no substantial 357 00:20:24,480 --> 00:20:29,399 Speaker 5: student debt relief program during the Biden administration, Yeah, I think. 358 00:20:29,280 --> 00:20:31,720 Speaker 7: That's right, just given the pace of litigation, right, so 359 00:20:31,760 --> 00:20:33,800 Speaker 7: that you could throw a Hail Mary Kney appeal to 360 00:20:33,840 --> 00:20:37,840 Speaker 7: the US Supreme Court and hope that they side with 361 00:20:38,320 --> 00:20:41,879 Speaker 7: the Tenth Circuit rather than the Eighth Circuit. But again, 362 00:20:42,280 --> 00:20:47,720 Speaker 7: given how closely the Eighth Circuit's logic tracks the logic 363 00:20:47,840 --> 00:20:50,680 Speaker 7: of the Supreme Court's own opinion in Biden against Nebraska, 364 00:20:50,720 --> 00:20:53,439 Speaker 7: the earlier case. I don't think that's going to happen. 365 00:20:54,040 --> 00:20:59,119 Speaker 5: Why are the Republican states so bent, so driven to 366 00:20:59,160 --> 00:21:02,640 Speaker 5: stop any student loan forgiveness? Is it just because it's 367 00:21:02,680 --> 00:21:06,480 Speaker 5: a Biden administration initiative or is it some other reason? 368 00:21:07,080 --> 00:21:10,160 Speaker 3: Well, I think they've got three kinds of reasons. 369 00:21:10,400 --> 00:21:13,920 Speaker 7: One is, you know, anything your forum against. I think 370 00:21:13,920 --> 00:21:16,240 Speaker 7: that there is some of that going on here. But 371 00:21:16,480 --> 00:21:19,880 Speaker 7: I think a second piece is that you know, they're 372 00:21:20,080 --> 00:21:27,240 Speaker 7: hostile to executive branch agencies doing things that Congress hasn't 373 00:21:27,359 --> 00:21:30,639 Speaker 7: clearly authorized because they're hostile to the administrative state. And 374 00:21:30,680 --> 00:21:34,000 Speaker 7: you saw that in the overruling of Chevron, You've seen 375 00:21:34,040 --> 00:21:36,439 Speaker 7: that in the Major Questions doctrine. You see that in 376 00:21:36,480 --> 00:21:40,159 Speaker 7: these suggestions by various Conservative justices that they'd like to 377 00:21:40,680 --> 00:21:44,240 Speaker 7: revitalize the so called non delegation doctrine. I should say 378 00:21:44,240 --> 00:21:47,679 Speaker 7: that the Republicans in Congress are much more hostile to 379 00:21:47,920 --> 00:21:51,040 Speaker 7: the executive doing things that aren't very clearly authorized by 380 00:21:51,040 --> 00:21:53,720 Speaker 7: Congress when it's a democratic presidents, and they are when 381 00:21:53,760 --> 00:21:56,080 Speaker 7: it's a Republican president. But that you know that door 382 00:21:56,119 --> 00:21:58,800 Speaker 7: swings both ways. That's just generally true. And then the 383 00:21:58,840 --> 00:22:01,320 Speaker 7: third thing I'll say is that you know, there are 384 00:22:02,040 --> 00:22:08,280 Speaker 7: I think legitimate policy reasons to it's not necessarily oppose 385 00:22:08,400 --> 00:22:13,320 Speaker 7: a student's debt forgiveness to think about the issue in. 386 00:22:13,280 --> 00:22:14,600 Speaker 3: A broader perspective. 387 00:22:14,880 --> 00:22:19,000 Speaker 7: So it's true that people who borrowed money to go 388 00:22:19,000 --> 00:22:21,080 Speaker 7: to college, or even to go to grad school or 389 00:22:21,200 --> 00:22:24,080 Speaker 7: professional school and now are battled with a lot of 390 00:22:24,119 --> 00:22:28,080 Speaker 7: debt find that difficult, especially if they didn't have you know, 391 00:22:28,160 --> 00:22:30,640 Speaker 7: fixed rates, which we typically don't for these things, especially 392 00:22:31,000 --> 00:22:33,560 Speaker 7: as we've been in a high interest rate environment for 393 00:22:33,680 --> 00:22:37,440 Speaker 7: the last couple of years. But so do other people, right, 394 00:22:37,600 --> 00:22:39,680 Speaker 7: you know, if you borrow money to start a business, 395 00:22:39,920 --> 00:22:42,960 Speaker 7: you could be saddled with a lot of debt. If 396 00:22:43,080 --> 00:22:48,359 Speaker 7: you went to a less expensive college, then you might 397 00:22:48,400 --> 00:22:50,439 Speaker 7: have gone to that might have given you a somewhat 398 00:22:50,440 --> 00:22:54,240 Speaker 7: more prestigious degree because you didn't want to be saddled 399 00:22:54,280 --> 00:22:57,320 Speaker 7: with debt, and you paid for your education out of pocket, 400 00:22:57,680 --> 00:22:59,879 Speaker 7: or you got loans that aren't covered by one of 401 00:23:00,160 --> 00:23:03,040 Speaker 7: these relief programs. Then you might say, well, I'm similarly 402 00:23:03,080 --> 00:23:04,920 Speaker 7: situated to the people who are getting this relief. 403 00:23:05,080 --> 00:23:06,679 Speaker 3: I should get the relief as well. 404 00:23:06,960 --> 00:23:09,000 Speaker 7: And there is of course a revenue hit to the 405 00:23:09,000 --> 00:23:12,200 Speaker 7: federal government, which means either you're going to run larger 406 00:23:12,240 --> 00:23:14,600 Speaker 7: deficits or you're going to have to cut somewhere else. 407 00:23:14,680 --> 00:23:16,840 Speaker 3: So it's not as though student debt. 408 00:23:16,680 --> 00:23:21,840 Speaker 7: Forgiveness is a slam dunk on the policy side. And 409 00:23:21,880 --> 00:23:24,440 Speaker 7: so I think it's quite possible that some Republicans, probably 410 00:23:24,440 --> 00:23:28,440 Speaker 7: even some Democrats, think that while this may or may 411 00:23:28,440 --> 00:23:32,760 Speaker 7: not have certain political impacts, and it's certainly valuable to 412 00:23:32,800 --> 00:23:35,719 Speaker 7: the people who get the forgiveness and they certainly, you know, 413 00:23:36,119 --> 00:23:38,920 Speaker 7: use it, it's not necessarily the best policy, of all 414 00:23:38,960 --> 00:23:39,640 Speaker 7: things considered. 415 00:23:40,000 --> 00:23:42,679 Speaker 5: The next thing we'll hear on this will probably be 416 00:23:42,840 --> 00:23:46,280 Speaker 5: whether the Supreme Court decides to take the case. Thanks 417 00:23:46,280 --> 00:23:50,280 Speaker 5: so much, Mike Best. Professor Michael Dorf of Cornell Law School. Now, 418 00:23:50,280 --> 00:23:53,480 Speaker 5: if you're one of the borrowers enrolled in the save plan, 419 00:23:53,880 --> 00:23:56,800 Speaker 5: you don't have to worry about payments or interest accruing. 420 00:23:56,880 --> 00:24:01,440 Speaker 5: Yet the Education Department has put all low in forbearance 421 00:24:01,760 --> 00:24:06,679 Speaker 5: while the litigation continues. I'm June Grosso, and this is Bloomberg. 422 00:24:11,040 --> 00:24:15,840 Speaker 1: This is Bloomberg Law with June Grosso from Bloomberg Radio. 423 00:24:17,040 --> 00:24:21,440 Speaker 5: Robert F. Kennedy Junior's independent presidential campaign took a hit 424 00:24:21,560 --> 00:24:24,120 Speaker 5: this week when a judge kicked him off the ballot 425 00:24:24,160 --> 00:24:27,440 Speaker 5: in New York after finding that he falsely claimed a 426 00:24:27,520 --> 00:24:31,240 Speaker 5: New York residence on his nominating petitions, despite the fact 427 00:24:31,280 --> 00:24:34,359 Speaker 5: that he lives in California. It's a ruling that could 428 00:24:34,359 --> 00:24:38,439 Speaker 5: create problems for the candidate as he faces challenges elsewhere. 429 00:24:38,840 --> 00:24:42,600 Speaker 5: Following a short trial, Judge Christina Reba found that Kennedy 430 00:24:42,720 --> 00:24:45,640 Speaker 5: was using a sham address on the petitions to put 431 00:24:45,640 --> 00:24:48,280 Speaker 5: his name on the New York ballot. In her decision 432 00:24:48,320 --> 00:24:51,959 Speaker 5: on Monday, the judge said that quote using a friend's 433 00:24:52,119 --> 00:24:56,480 Speaker 5: address for political and voting purposes while barely stepping foot 434 00:24:56,480 --> 00:24:59,919 Speaker 5: on the premises, does not equate to residency under the 435 00:25:00,080 --> 00:25:04,080 Speaker 5: election law. In an interview with CBS six in Albany, 436 00:25:04,480 --> 00:25:07,679 Speaker 5: Kennedy compared his situation to that of his late father, 437 00:25:08,040 --> 00:25:11,040 Speaker 5: Senator Robert F. Kennedy, when he ran in New York 438 00:25:11,160 --> 00:25:12,360 Speaker 5: in nineteen sixty eight. 439 00:25:13,119 --> 00:25:18,040 Speaker 1: He was also, ironically also called a carpetbagger. In other words, 440 00:25:18,119 --> 00:25:20,120 Speaker 1: you know that he didn't really live in New York State. 441 00:25:20,480 --> 00:25:23,840 Speaker 1: So sixty years later, now I'm running and I'm being 442 00:25:23,880 --> 00:25:26,040 Speaker 1: told I don't live in New York State. My driver's 443 00:25:26,080 --> 00:25:28,560 Speaker 1: license here, I vote in this state, my car is 444 00:25:28,600 --> 00:25:33,600 Speaker 1: registered here, my law licenses in this state, not California, 445 00:25:34,760 --> 00:25:37,760 Speaker 1: my law offices in the state. I pay income tagris 446 00:25:37,800 --> 00:25:38,280 Speaker 1: in this state. 447 00:25:38,640 --> 00:25:42,679 Speaker 5: Kennedy is facing challenges in more than a half dozen states, 448 00:25:42,720 --> 00:25:46,280 Speaker 5: some alleging that he falsely listed the same New York address. 449 00:25:46,640 --> 00:25:49,880 Speaker 5: He's appealing the New York decision joining me is elections 450 00:25:49,960 --> 00:25:53,639 Speaker 5: law expert Richard Brofalt, a professor at Columbia Law School, 451 00:25:54,119 --> 00:25:57,440 Speaker 5: rich how is residency defined under New York law. 452 00:25:57,720 --> 00:26:02,320 Speaker 4: Residency means domicile is the place that you maintain is 453 00:26:02,359 --> 00:26:04,719 Speaker 4: your home and if you are a way, you intend 454 00:26:04,760 --> 00:26:07,919 Speaker 4: to return to it. New York law recognizes that people 455 00:26:08,040 --> 00:26:10,880 Speaker 4: can have multiple residents. You could have a main home 456 00:26:10,920 --> 00:26:12,760 Speaker 4: and a summer home and another home, but one of 457 00:26:12,800 --> 00:26:15,119 Speaker 4: them has to be the place that is your primary 458 00:26:15,119 --> 00:26:17,280 Speaker 4: residence in legal terms, your domicile. 459 00:26:17,800 --> 00:26:22,520 Speaker 5: Kennedy listed as his residence a friend's house in Katona, 460 00:26:22,600 --> 00:26:25,439 Speaker 5: New York, where he said he rented a bedroom, but 461 00:26:25,560 --> 00:26:29,040 Speaker 5: he admitted at trial that he only spent one night 462 00:26:29,119 --> 00:26:32,000 Speaker 5: there that was about a month ago. In June. There's 463 00:26:32,040 --> 00:26:34,840 Speaker 5: no written lease. He only made a rent payment. After 464 00:26:34,880 --> 00:26:37,439 Speaker 5: a New York Post story came out, he moved with 465 00:26:37,520 --> 00:26:40,240 Speaker 5: his kids and his pets except for the Falcons and 466 00:26:40,280 --> 00:26:43,399 Speaker 5: the Hawk, to California in twenty fourteen. He bought a 467 00:26:43,440 --> 00:26:45,640 Speaker 5: house there, and when asked a trilo if he lives 468 00:26:45,640 --> 00:26:48,399 Speaker 5: in California, he said yes. I mean, what is his 469 00:26:48,800 --> 00:26:51,600 Speaker 5: reason for claiming New York residency? 470 00:26:52,000 --> 00:26:55,440 Speaker 4: Oh, his reason, I think is that his running mate 471 00:26:55,680 --> 00:26:59,680 Speaker 4: is a California resident, and under the constitution he went 472 00:26:59,720 --> 00:27:03,800 Speaker 4: in the electoral votes, the California electors cannot vote for 473 00:27:03,880 --> 00:27:06,800 Speaker 4: both of them. In other words, if he somehow carried California, 474 00:27:07,000 --> 00:27:10,000 Speaker 4: the California electors are prohibited by the constitution for voting 475 00:27:10,040 --> 00:27:12,160 Speaker 4: for two people from their own state, so he had 476 00:27:12,200 --> 00:27:14,520 Speaker 4: to have a separate residency from his vice president. 477 00:27:14,880 --> 00:27:15,000 Speaker 8: Well. 478 00:27:15,119 --> 00:27:18,760 Speaker 5: The judge said that he demonstrated a long standing pattern 479 00:27:18,800 --> 00:27:22,280 Speaker 5: of borrowing addresses to keep up the appearances of New 480 00:27:22,359 --> 00:27:26,200 Speaker 5: York residency. I mean, at one point he claimed residency 481 00:27:26,400 --> 00:27:29,000 Speaker 5: at a house that his sister had sold and neither 482 00:27:29,000 --> 00:27:30,240 Speaker 5: of them lived in anymore. 483 00:27:30,640 --> 00:27:32,720 Speaker 4: Apparently he's still registered to vote in New York. He 484 00:27:32,760 --> 00:27:35,000 Speaker 4: has a new York driver's license, and has some other 485 00:27:35,040 --> 00:27:38,639 Speaker 4: New York connections, and in some kind of fairness, he 486 00:27:38,880 --> 00:27:40,840 Speaker 4: was a New York resident for a long while and 487 00:27:40,920 --> 00:27:43,359 Speaker 4: had a lot of connections to New York. But yes, 488 00:27:43,520 --> 00:27:46,240 Speaker 4: as I think the judge found, for quite a long 489 00:27:46,240 --> 00:27:48,919 Speaker 4: period of time, recently he's been living in California with 490 00:27:49,080 --> 00:27:52,639 Speaker 4: his wife and children and pets, and California has, I 491 00:27:52,640 --> 00:27:54,960 Speaker 4: think the court found that it seems reasonable, has been 492 00:27:54,960 --> 00:27:57,800 Speaker 4: his principal residence for the last several years. As the 493 00:27:57,800 --> 00:28:00,800 Speaker 4: court said, you need a specific place to be a residence, 494 00:28:00,880 --> 00:28:04,119 Speaker 4: not some general geographic area like he's had connections to 495 00:28:04,119 --> 00:28:06,159 Speaker 4: New York, but you actually need to have, as the 496 00:28:06,200 --> 00:28:09,080 Speaker 4: course as a specific abode in New York in order 497 00:28:09,080 --> 00:28:11,439 Speaker 4: for New York to be a residence, and he doesn't 498 00:28:11,440 --> 00:28:11,880 Speaker 4: have one. 499 00:28:12,119 --> 00:28:14,359 Speaker 5: So some of the reasons he claims residency, or he 500 00:28:14,440 --> 00:28:18,160 Speaker 5: has New York state fishing and falconry licenses, a New 501 00:28:18,200 --> 00:28:21,760 Speaker 5: York state driver's license and vehicle registration, a New York 502 00:28:21,760 --> 00:28:25,240 Speaker 5: state voter registration, a license to practice law in New York, 503 00:28:25,280 --> 00:28:27,960 Speaker 5: and he pays New York state taxes. Do any of 504 00:28:28,000 --> 00:28:29,800 Speaker 5: those count toward residency? 505 00:28:30,119 --> 00:28:32,280 Speaker 4: They will all be relevant if he actually had a 506 00:28:32,359 --> 00:28:34,720 Speaker 4: home in New York. I mean again, I think if 507 00:28:34,720 --> 00:28:36,760 Speaker 4: he had an actual home in New York and as 508 00:28:36,800 --> 00:28:39,800 Speaker 4: well as an actual home in California, it would support 509 00:28:40,000 --> 00:28:43,280 Speaker 4: his argument that New York is his primary home. But 510 00:28:43,480 --> 00:28:45,800 Speaker 4: the problem is he has no home in New York 511 00:28:45,920 --> 00:28:48,120 Speaker 4: at all. So I mean, I think those would have 512 00:28:48,160 --> 00:28:51,360 Speaker 4: been relevant if it was more of a contest as 513 00:28:51,440 --> 00:28:54,200 Speaker 4: to whether or not New York or California was his home. 514 00:28:54,360 --> 00:28:56,640 Speaker 4: He had various legal ties to New York, but the 515 00:28:56,680 --> 00:29:00,640 Speaker 4: low requires that he actually has an actual physical residence 516 00:29:00,680 --> 00:29:02,719 Speaker 4: in New York, and that is one thing that he 517 00:29:02,760 --> 00:29:03,760 Speaker 4: does not appear to have. 518 00:29:04,280 --> 00:29:06,800 Speaker 5: And as far as the spare bedroom that he was 519 00:29:06,840 --> 00:29:11,480 Speaker 5: supposedly renting out, court said quote, the court finds Kennedy's 520 00:29:11,520 --> 00:29:15,000 Speaker 5: testimony that he may return to that bedroom to reside 521 00:29:15,040 --> 00:29:18,080 Speaker 5: with his wife, family members, multiple pets, and all of 522 00:29:18,080 --> 00:29:22,680 Speaker 5: his personal belongings to be highly improbable, if not preposterous. 523 00:29:23,000 --> 00:29:25,600 Speaker 5: I mean, when you look at his testimony and the 524 00:29:25,640 --> 00:29:29,120 Speaker 5: testimony of other witnesses, it seems almost like an open 525 00:29:29,160 --> 00:29:30,040 Speaker 5: and shut case. 526 00:29:30,360 --> 00:29:31,880 Speaker 4: I think that's right, I mean, in some sense. To 527 00:29:31,960 --> 00:29:36,120 Speaker 4: Judge's first point was how strictly or loosely do I 528 00:29:36,160 --> 00:29:38,680 Speaker 4: have to interpret residence, and she says, under New York 529 00:29:38,720 --> 00:29:42,360 Speaker 4: state law, under near Court of Appeals decisions, some election 530 00:29:42,680 --> 00:29:46,840 Speaker 4: qualifications can be interpreted loosely, but these very formal, specific 531 00:29:46,880 --> 00:29:50,240 Speaker 4: ones have to be interpreted strictly so that the courts 532 00:29:50,280 --> 00:29:53,240 Speaker 4: are consistent from case to case. So the first thing is, 533 00:29:53,240 --> 00:29:55,520 Speaker 4: you really do have to show that you're a resident, 534 00:29:55,560 --> 00:29:58,080 Speaker 4: and then she went through what that entails, and then 535 00:29:58,120 --> 00:30:00,760 Speaker 4: there was extensive testimony from all the people who are 536 00:30:00,840 --> 00:30:03,240 Speaker 4: arguably for letting him a home, and it was pretty 537 00:30:03,240 --> 00:30:06,400 Speaker 4: clear that his connection to the place he's claiming to 538 00:30:06,400 --> 00:30:09,280 Speaker 4: be a home is extremely attenuated. As he pointed out, 539 00:30:09,320 --> 00:30:11,920 Speaker 4: it's one bedroom in somebody else's house. He's only been 540 00:30:11,960 --> 00:30:14,000 Speaker 4: there one night in the entire time he's had a 541 00:30:14,000 --> 00:30:16,880 Speaker 4: connection to it. He wasn't paying rent until this case 542 00:30:16,920 --> 00:30:19,640 Speaker 4: became a case, and then he paid it retroactively back rent. 543 00:30:19,800 --> 00:30:22,440 Speaker 4: And the home itself is under forclosure. And as she 544 00:30:22,480 --> 00:30:25,520 Speaker 4: points out, he is an entire household in California, and 545 00:30:25,560 --> 00:30:28,320 Speaker 4: it says seems unlikely that if he were to return 546 00:30:28,360 --> 00:30:30,320 Speaker 4: to New York, he would be returning to that one 547 00:30:30,320 --> 00:30:32,080 Speaker 4: bedroom with his whole household. 548 00:30:32,320 --> 00:30:36,240 Speaker 5: He also claimed advice of counsel that his lawyer told 549 00:30:36,320 --> 00:30:37,560 Speaker 5: him this was okay. 550 00:30:37,520 --> 00:30:41,440 Speaker 4: It doesn't work. I mean, he's not being prosecuted for lying. 551 00:30:41,880 --> 00:30:43,880 Speaker 4: It's just that he had a fell out a form 552 00:30:44,040 --> 00:30:46,040 Speaker 4: and he filled out before him inaccurately. 553 00:30:46,280 --> 00:30:49,760 Speaker 5: So he's appealing the decision in New York Appellate Court, 554 00:30:50,120 --> 00:30:52,520 Speaker 5: and his legal team has said they're going to seek 555 00:30:52,600 --> 00:30:56,600 Speaker 5: injunctive relief in federal court, and they're arguing that the 556 00:30:56,720 --> 00:31:02,280 Speaker 5: US Constitution's Twelfth Amendment governs the residency of presidential and 557 00:31:02,360 --> 00:31:06,640 Speaker 5: vice presidential candidates, not state law. And they made a 558 00:31:06,680 --> 00:31:10,000 Speaker 5: similar argument before the judge in New York who rejected it. 559 00:31:10,240 --> 00:31:11,360 Speaker 5: What do you think of that argument. 560 00:31:11,720 --> 00:31:14,080 Speaker 4: It's kind of a red herring. I mean, yes, New 561 00:31:14,160 --> 00:31:17,160 Speaker 4: York State could not require him to be a resident 562 00:31:17,240 --> 00:31:20,320 Speaker 4: of New York State. That would be unconstitutional. But New 563 00:31:20,400 --> 00:31:22,040 Speaker 4: York State is not doing that. New York State is 564 00:31:22,040 --> 00:31:24,400 Speaker 4: simply saying, in order to get on the ballot, you 565 00:31:24,480 --> 00:31:26,600 Speaker 4: have to fill out a form, and you have to 566 00:31:26,640 --> 00:31:30,240 Speaker 4: fill out the form accurately. And the Supreme Court is 567 00:31:30,280 --> 00:31:32,920 Speaker 4: in the past recognized that states can set their own 568 00:31:33,000 --> 00:31:35,720 Speaker 4: rules for getting on the ballot, provided that they're reasonable 569 00:31:35,800 --> 00:31:38,240 Speaker 4: rules that they're not on duly burdensome, that they're not 570 00:31:38,360 --> 00:31:41,520 Speaker 4: too hard to satisfy. You couldn't require somebody to have 571 00:31:41,640 --> 00:31:44,200 Speaker 4: a humongous number of signatures in a very short period 572 00:31:44,200 --> 00:31:46,400 Speaker 4: of time. That would be too burdensome. But I think 573 00:31:46,560 --> 00:31:48,440 Speaker 4: a rule that simply states you have to put down 574 00:31:48,480 --> 00:31:50,920 Speaker 4: your place of residence is the kind of rule that 575 00:31:51,080 --> 00:31:54,120 Speaker 4: probably for most candidates, is not on duly burthensome. And 576 00:31:54,160 --> 00:31:56,800 Speaker 4: the Court has recognized the right of state and effects 577 00:31:56,840 --> 00:31:59,120 Speaker 4: that require certain forms to be filled out and order 578 00:31:59,120 --> 00:32:01,640 Speaker 4: did on the ballot. So just to repeat, he does 579 00:32:01,680 --> 00:32:03,640 Speaker 4: not have to be a New York resident, but he 580 00:32:03,680 --> 00:32:05,560 Speaker 4: does have to fill out the form correctly. 581 00:32:05,920 --> 00:32:10,120 Speaker 5: Could this open him up to challenges in other states 582 00:32:10,200 --> 00:32:15,160 Speaker 5: because apparently his campaign used the same address to gather 583 00:32:15,400 --> 00:32:17,480 Speaker 5: signatures in other states. 584 00:32:17,800 --> 00:32:20,080 Speaker 4: That's an interesting question, and I would break it up 585 00:32:20,120 --> 00:32:22,960 Speaker 4: into a couple of parts. So in a number of states, 586 00:32:22,960 --> 00:32:24,760 Speaker 4: now he is actually on the ballot, he has been 587 00:32:24,800 --> 00:32:28,120 Speaker 4: approved by the relevant decision maker, whether it's the Secretary 588 00:32:28,120 --> 00:32:30,280 Speaker 4: of State of that state or possibly even by a 589 00:32:30,320 --> 00:32:33,800 Speaker 4: court after a litigation. So one issue in those states 590 00:32:33,840 --> 00:32:36,760 Speaker 4: would be can that be reopened once the person has 591 00:32:36,760 --> 00:32:38,520 Speaker 4: actually gotten on the ballot and that would turn on 592 00:32:38,560 --> 00:32:41,480 Speaker 4: the law of that state. Second question, and which would 593 00:32:41,480 --> 00:32:43,600 Speaker 4: be true both in those states in the states where 594 00:32:43,720 --> 00:32:46,280 Speaker 4: the prosecutor on the ballot has not been resolved, is 595 00:32:46,520 --> 00:32:49,479 Speaker 4: you know, is this required on their forms? And how 596 00:32:49,880 --> 00:32:54,320 Speaker 4: stringently or liberally do they apply the requirements of their forms. 597 00:32:54,560 --> 00:32:56,640 Speaker 4: That would be a second question. Now the words some 598 00:32:56,720 --> 00:32:59,520 Speaker 4: states might be willing to waive a mistake. New York 599 00:32:59,800 --> 00:33:01,760 Speaker 4: was not. So those are really sort of two big 600 00:33:01,800 --> 00:33:04,440 Speaker 4: open questions. He's on the ballot now and I don't 601 00:33:04,480 --> 00:33:07,200 Speaker 4: know the exact number, but it's around twenty states that 602 00:33:07,240 --> 00:33:10,040 Speaker 4: have been resolved, and that would turn on what their 603 00:33:10,120 --> 00:33:12,680 Speaker 4: rules are on reopening a question like that. And the 604 00:33:12,680 --> 00:33:15,040 Speaker 4: second would be, you know, was it required in these 605 00:33:15,080 --> 00:33:17,120 Speaker 4: states to fill out this form to state a place 606 00:33:17,160 --> 00:33:19,680 Speaker 4: of residents. That seems like a reasonable kind of a 607 00:33:19,720 --> 00:33:22,440 Speaker 4: normal bureaucratic requirement, and it is I think relevant to 608 00:33:22,480 --> 00:33:24,640 Speaker 4: the Twelfth Amendment problem of making sure you don't have 609 00:33:24,680 --> 00:33:26,880 Speaker 4: two people from the same state, which is also happens 610 00:33:26,880 --> 00:33:27,480 Speaker 4: to be your state. 611 00:33:27,560 --> 00:33:27,960 Speaker 2: But then the. 612 00:33:28,000 --> 00:33:31,480 Speaker 4: Question is how stringently are they going to enforce that rule? 613 00:33:31,560 --> 00:33:35,000 Speaker 4: And different state courts might have different policies on how 614 00:33:35,040 --> 00:33:37,760 Speaker 4: strictly or loosely they enforce a rule like that. 615 00:33:38,120 --> 00:33:41,760 Speaker 5: Taking that into account, then might a New York Appellate 616 00:33:41,840 --> 00:33:43,880 Speaker 5: court be willing to waive the mistake. 617 00:33:44,360 --> 00:33:46,120 Speaker 4: It's not out of the question. I mean, you know, 618 00:33:46,160 --> 00:33:49,840 Speaker 4: there is a tension between you know, making someone available 619 00:33:49,880 --> 00:33:53,400 Speaker 4: to the voters, and it's not relevant to his eligibility 620 00:33:53,400 --> 00:33:55,880 Speaker 4: to be elected or his seriousness as a candidate. It 621 00:33:55,880 --> 00:33:57,800 Speaker 4: doesn't affect whether or not he's over thirty five and 622 00:33:57,840 --> 00:34:01,000 Speaker 4: a citizen. That's basically the eligibility to press. And many 623 00:34:01,040 --> 00:34:03,760 Speaker 4: states do require that you gather a certain number of 624 00:34:03,800 --> 00:34:06,760 Speaker 4: signatures that either you be nominated by your party, or 625 00:34:06,800 --> 00:34:08,600 Speaker 4: that if you're running as an independent, you get a 626 00:34:08,640 --> 00:34:11,160 Speaker 4: certain number of signatures, or running is a new party 627 00:34:11,160 --> 00:34:13,239 Speaker 4: that your new party gets a certain number of signatures, 628 00:34:13,600 --> 00:34:16,800 Speaker 4: And those are all designed to establish that the candidate 629 00:34:17,239 --> 00:34:21,560 Speaker 4: is serious not trivolous. He's presumably satisfied that. So I 630 00:34:21,560 --> 00:34:24,600 Speaker 4: could imagine a court saying that a question that doesn't 631 00:34:24,680 --> 00:34:28,759 Speaker 4: bear on his eligibility to serve and seriousness as a 632 00:34:28,800 --> 00:34:31,160 Speaker 4: candidate might be one that we would be willing to wigh. 633 00:34:31,360 --> 00:34:34,160 Speaker 4: He is running for a national office, and there is 634 00:34:34,239 --> 00:34:39,040 Speaker 4: some argument that court should be less restrictive because I mean, 635 00:34:39,280 --> 00:34:41,839 Speaker 4: he was going to be really in contention that having 636 00:34:41,840 --> 00:34:44,160 Speaker 4: a rule like this to knock somebody off the ballot, 637 00:34:44,280 --> 00:34:46,600 Speaker 4: that would affect a serious national candidate sort off. You 638 00:34:46,600 --> 00:34:49,000 Speaker 4: don't want individual states to be doing that. So that 639 00:34:49,040 --> 00:34:50,759 Speaker 4: would be one possibility. But the other would be that 640 00:34:50,800 --> 00:34:53,839 Speaker 4: the court might also stick with what this lower court 641 00:34:53,880 --> 00:34:56,520 Speaker 4: said is to some things which are not that burdensome, 642 00:34:56,880 --> 00:35:00,400 Speaker 4: it's best to be absolutely strict. Otherwise the chance pols 643 00:35:00,400 --> 00:35:02,799 Speaker 4: are explaining a role in different judges applying the same 644 00:35:02,840 --> 00:35:05,839 Speaker 4: rule differently in different cases whom's very large. So there 645 00:35:05,880 --> 00:35:10,240 Speaker 4: was an argument from consistent application a fairly straightforward rule 646 00:35:10,440 --> 00:35:13,279 Speaker 4: that says you should enforce it, versus the argument that 647 00:35:13,400 --> 00:35:17,000 Speaker 4: this does not really go to either his eligibily disserve 648 00:35:17,360 --> 00:35:19,960 Speaker 4: or his seriousness as a candidate. So maybe you waive it. 649 00:35:20,040 --> 00:35:21,759 Speaker 4: I mean, I could see it coming out either way. 650 00:35:22,360 --> 00:35:24,880 Speaker 5: And so what's your gut feeling about what an appellate 651 00:35:24,920 --> 00:35:25,600 Speaker 5: court might do. 652 00:35:26,160 --> 00:35:28,399 Speaker 4: It's very hard to imagine that an appellate court will 653 00:35:28,400 --> 00:35:30,960 Speaker 4: overturn this on the facts. But the real question is 654 00:35:31,000 --> 00:35:32,839 Speaker 4: what do you do with it? Basically, do you let 655 00:35:33,040 --> 00:35:35,560 Speaker 4: go and say, well, you know, we don't have to 656 00:35:35,560 --> 00:35:37,480 Speaker 4: interpret it that strictly or do you do with the 657 00:35:37,560 --> 00:35:40,040 Speaker 4: trial court didn't say, well, you know, our presence requires 658 00:35:40,160 --> 00:35:43,040 Speaker 4: strict application and he's not a resident. 659 00:35:43,520 --> 00:35:47,640 Speaker 5: This challenge was brought by four voters with the backing 660 00:35:47,880 --> 00:35:53,359 Speaker 5: of the democratically aligned Clear Choice Action. Right, the Democrats 661 00:35:53,400 --> 00:35:58,279 Speaker 5: have dedicated a substantial legal and ground operation to challenging 662 00:35:58,880 --> 00:36:00,840 Speaker 5: third party candidate ballid access. 663 00:36:01,160 --> 00:36:03,600 Speaker 4: That's right, although it's interesting now at Lisa clink to 664 00:36:03,760 --> 00:36:08,120 Speaker 4: recent surveys, it's now unclear from whom Kennedy pulls more votes, 665 00:36:08,440 --> 00:36:11,280 Speaker 4: Harris or Trump. So it's true, and he began obviously 666 00:36:11,320 --> 00:36:14,080 Speaker 4: he was a Democrat. He comes from an obviously extremely 667 00:36:14,120 --> 00:36:17,800 Speaker 4: distinguished and famous Democratic family. I think people assume Democrats 668 00:36:17,800 --> 00:36:20,360 Speaker 4: assume that he's going to draw mostly Democrats. I guess 669 00:36:20,520 --> 00:36:23,600 Speaker 4: recent polling surveys suggests that may be closer to fifty 670 00:36:23,600 --> 00:36:25,840 Speaker 4: to fifty as whether he's pulling from Trump or Harris. 671 00:36:25,960 --> 00:36:28,239 Speaker 4: So it's not one hundred percent clear. This is all 672 00:36:28,320 --> 00:36:30,960 Speaker 4: right strategy for the Democrats. But this is the strategy 673 00:36:31,000 --> 00:36:31,800 Speaker 4: they've been pursuing. 674 00:36:31,920 --> 00:36:34,319 Speaker 5: Thanks for being on the show, rich that's Columbia Law 675 00:36:34,360 --> 00:36:37,719 Speaker 5: School professor Richard Ruffault. And that's it for this edition 676 00:36:37,760 --> 00:36:40,759 Speaker 5: of the Bloomberg Law Podcast. Remember you can always get 677 00:36:40,800 --> 00:36:43,520 Speaker 5: the latest legal news by subscribing and listening to the 678 00:36:43,560 --> 00:36:47,600 Speaker 5: show on Apple Podcasts, Spotify, and at Bloomberg dot com, 679 00:36:47,640 --> 00:36:51,880 Speaker 5: slash podcast, slash Law. I'm June Grosso and this is 680 00:36:51,920 --> 00:36:52,480 Speaker 5: Bloomberg