WEBVTT - Weekend Law: Trump Tests LImits, FBI Agents Sue & Antitrust First

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<v Speaker 1>This is Bloomberg Law with June Grossel from Bloomberg Radio.

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<v Speaker 2>The headline is that Musk has your data, that Musk

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<v Speaker 2>has control of the systems as a Treasury appointee.

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<v Speaker 3>That is unfathomable.

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<v Speaker 2>The extraordinary empowerment of Elon Musk by Donald Trump is

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<v Speaker 2>a headline that keeps repeating. Alarm bells rang after Musk

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<v Speaker 2>and his young deputies gained access to the Treasury Department's

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<v Speaker 2>computer network, where the private financial data of nearly every

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<v Speaker 2>American is stored. That means names, phone numbers, social security information,

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<v Speaker 2>and bank information. Many Democratic members of Congress, like Senator

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<v Speaker 2>Mark Warner of Virginia and Representative Ayanna Presley of Massachusetts,

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<v Speaker 2>joined protests this week in d c against the world's

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<v Speaker 2>richest man and his Department of Government efficiency.

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<v Speaker 4>You've got we don't know anything about, looking at potentially

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<v Speaker 4>all of our personal information, all of the money flows

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<v Speaker 4>that go out of Treasury. The Banking Committee needs to

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<v Speaker 4>bring up the dose folks who are illegally in Treasury

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<v Speaker 4>and have them testify. I am so tired of these

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<v Speaker 4>billionaire boys in their grubby.

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<v Speaker 2>Little hands, Treasury Secretary Scott Bessen told Bloomberg it was

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<v Speaker 2>a lot of misinformation.

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<v Speaker 5>There is no tinkering with the system. They are on

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<v Speaker 5>read only. They are looking. They can make no changes.

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<v Speaker 5>It is an operational program to suggest improvement.

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<v Speaker 2>Nevertheless, a DC federal judge placed temporary limits on Doze's

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<v Speaker 2>access after a group of unions sued. So far, the

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<v Speaker 2>courts have been the only restraint on the Trump administration,

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<v Speaker 2>with judges issuing a mere of court orders this week, delaying, limiting,

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<v Speaker 2>or outright blocking Trump's actions. My guest is an expert

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<v Speaker 2>in constitutional law, Harold Krent, a professor at the Chicago

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<v Speaker 2>Kent College of Law. How at this point does it

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<v Speaker 2>seem as if Trump is issuing these executive orders without

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<v Speaker 2>any consideration of their legality?

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<v Speaker 6>In my mind, he's acting with respects of the law,

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<v Speaker 6>sort of the way he is with respect to foreign policy,

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<v Speaker 6>and the way he did with business or which was

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<v Speaker 6>to start out dramatically asking for the moon, frightening everybody,

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<v Speaker 6>and then slowly chipping away at demands. And it's proved

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<v Speaker 6>effective in business to a large extent. I don't know

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<v Speaker 6>how effective it'll be with tariffs and other kinds of

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<v Speaker 6>international relations, and I think it'll be slightly effective with

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<v Speaker 6>respect to legal challenges as well.

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<v Speaker 2>Let's turn to musk sweeping moves to downsize the federal government.

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<v Speaker 2>He orchestrated a physical takeover of the US US Agency

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<v Speaker 2>for International Development, which he's trying to shudder. His people

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<v Speaker 2>are doing who knows what, not only a treasury, but

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<v Speaker 2>at the Department of Education, the Department of Labor, et cetera.

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<v Speaker 2>Trump did sign an executive order giving Musk's workers unfettered

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<v Speaker 2>access to government agencies. But as a professor once told me,

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<v Speaker 2>executive orders are just pieces of paper.

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<v Speaker 6>Yeah, in so many areas, there's a level of violations

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<v Speaker 6>of congressional enactments. Some are more egregious than others, some

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<v Speaker 6>are subtle. I mean, the role of Musk as a

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<v Speaker 6>special governmental employee at this time is one of those

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<v Speaker 6>gray areas, because there is a role for special governmental

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<v Speaker 6>employee that can assume powers for a limited period of time,

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<v Speaker 6>and so far obviously Musk has not exceeded that. But

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<v Speaker 6>in terms of what he's actually done, there appears to

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<v Speaker 6>be violation differences of the privacy actedturas are getting access

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<v Speaker 6>of all those Social Security numbers. That's a pretty good indication.

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<v Speaker 6>And of course the USAID was set up by Congress,

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<v Speaker 6>So a presidential order cannot dismantle an agency that's been

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<v Speaker 6>chartered by Congress. So I think there's a spectrum of action.

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<v Speaker 6>Some appear to be clearly unconstitutional, like the birthrate Citizenship Order.

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<v Speaker 6>Some are closer in question. There's another lawsuit that was

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<v Speaker 6>stiled gave against Chicago or its sanctuaries city policies. I

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<v Speaker 6>think it's a closer call in terms of where you

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<v Speaker 6>draw the line. So there's just a lot that's being

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<v Speaker 6>thrown up against the wall, but some have some merit,

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<v Speaker 6>and it's going to take a while for the courts

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<v Speaker 6>to unravel. That we haven't mentioned yet, the whole challenge

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<v Speaker 6>to the independent agencies, since he's fired a member of

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<v Speaker 6>the National Labor Relations Board, which is an independent agency

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<v Speaker 6>that I think has a chance of success ultimately a

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<v Speaker 6>Supreme Court, given what the Supreme Court has said previously.

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<v Speaker 6>But whether Trump then can take the next step and

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<v Speaker 6>try to get rid of civil service, I'm far more

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<v Speaker 6>dubious about that.

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<v Speaker 2>Also, it seems like there's absolutely no oversight. In a

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<v Speaker 2>sort of Friday night massacre, he fired the inspectors general

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<v Speaker 2>for at least seventeen agencies.

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<v Speaker 6>Well, Congress has a structure in place that allows for

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<v Speaker 6>dismissal of the spector generals, but Trump didn't follow it,

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<v Speaker 6>So in that sense, obviously the resort is to court.

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<v Speaker 4>Again.

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<v Speaker 6>We'll have to wait see things play out. But I

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<v Speaker 6>think what's really frightening is not just that the Doge

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<v Speaker 6>got the private information. The question is what do they

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<v Speaker 6>really want to do with it? Do they really want

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<v Speaker 6>to just make the government more efficient and make sure

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<v Speaker 6>payments aren't going to the wrong people. That's one thing.

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<v Speaker 6>It's another thing to have kind of a deep state

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<v Speaker 6>and have big Brother watching everything we do because we

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<v Speaker 6>all have personal identifiers, and that must people may be

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<v Speaker 6>sort of tacking on to these personal identifiers other kinds

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<v Speaker 6>of individual indications for statistics, which gives rise to kind

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<v Speaker 6>of Chinese type of big government watching all of us.

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<v Speaker 6>We're not there yet, but that is at least one step.

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<v Speaker 3>Of the way.

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<v Speaker 2>By the way, I do want to mention that one

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<v Speaker 2>of those two Musk employees at Treasury resigned on Thursday

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<v Speaker 2>after some of his social media posts were described as racist.

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<v Speaker 2>There's also a lot of controversy and a lawsuit over

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<v Speaker 2>what's been called buyout offers for some two million federal employees.

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<v Speaker 2>They're not really buyout offers. They're more like deferred resignation offers.

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<v Speaker 2>So dose emailed federal employees to resign and be paid

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<v Speaker 2>until the end of September or risk losing their jobs.

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<v Speaker 2>There are problems with this offer because a there's a

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<v Speaker 2>federal rule that administrative leave can only be used for

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<v Speaker 2>ten working days a year, and b the government hasn't

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<v Speaker 2>been funded past March fourteenth.

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<v Speaker 6>On this level, I think that's the action. Amisation is

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<v Speaker 6>probably legal, just like any other kind of buyouts. And yes,

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<v Speaker 6>there are issues about what happens if funding drives out

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<v Speaker 6>in terms of paying these settlements, and maybe they'll be

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<v Speaker 6>able to use some of the money from somewhere else

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<v Speaker 6>to pay the settlements going forward, if that part is

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<v Speaker 6>obviously unclear, that the idea in basic of saying to

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<v Speaker 6>a federal employee, you have a right under civil service

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<v Speaker 6>to continue your job, but we will give you an

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<v Speaker 6>incentive to leave early, and when some of them were

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<v Speaker 6>planning to leave anyway, I think that probably is closer

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<v Speaker 6>to the legal line in comparison to some of the

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<v Speaker 6>other moves the administration has been making. I mean, maybe

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<v Speaker 6>there are some procedural issues that I'm not aware of

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<v Speaker 6>that the SPORT will look to to try to stop

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<v Speaker 6>the buyout, you know, questions of again, can you bind

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<v Speaker 6>the federal government to make these payments when there is

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<v Speaker 6>not continuing funding? You know, I think that lots of

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<v Speaker 6>issues are contingent upon continual funding by the government and

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<v Speaker 6>not hitting the debt fealing, et cetera. But again, in

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<v Speaker 6>comparison to the other moves that we've been seeing in

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<v Speaker 6>terms of discharge of general, the discharge of the pediven LRB,

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<v Speaker 6>that's dismantling of AID, I think this is far less

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<v Speaker 6>concerning than some of the other moves the Trump administration

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<v Speaker 6>is making.

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<v Speaker 2>We should find out more about this on Monday, because

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<v Speaker 2>a Massachusetts judge has temporarily paused the buyout offer until

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<v Speaker 2>a hearing on Monday. The court seemed to be the

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<v Speaker 2>only impediment to Trump's executive orders, some of which are

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<v Speaker 2>clearly beyond his presidential power, like the funding freeze and

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<v Speaker 2>the ending of birthright citizenship. This week, two federal judges,

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<v Speaker 2>one in Seattle and one in Maryland, block Trump's birthright

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<v Speaker 2>citizenship order, and Seattle judge John Kunauer accused Trump of

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<v Speaker 2>trying to change the constitution.

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<v Speaker 1>There are moments in the world's history when people look

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<v Speaker 1>back and ask where were the lawyers? Where were the judges?

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<v Speaker 1>In these moments, the rule of law becomes a specially

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<v Speaker 1>vulnerable I refuse to let that be can go dark today.

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<v Speaker 6>Yeah, and the big picture is are the guard RILs

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<v Speaker 6>going to come from nowhere? Or are they going to

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<v Speaker 6>come from the court or from Congress? Ultimately, and members

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<v Speaker 6>of the Republican Congress idly going to say, you know,

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<v Speaker 6>we were elected to do an independent job, and the

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<v Speaker 6>president has taken away our legislative authority. We don't know

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<v Speaker 6>where the guardils are going to come, and we just

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<v Speaker 6>have to hope that one of those two branches will

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<v Speaker 6>be able to step up and limit some of the

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<v Speaker 6>cruiter moves that the administration is already taken.

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<v Speaker 2>Speaking of courts, let's talk about the Supreme Court. On

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<v Speaker 2>the last day of the last term, the court issued

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<v Speaker 2>that controversial decision giving presidents immunity from prosecution for official acts.

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<v Speaker 2>A lot of the conservative Supreme Court justices also ascribed

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<v Speaker 2>to the unitary executive theory, under which the president has

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<v Speaker 2>sole authority over the executsative branch, and then of course,

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<v Speaker 2>the Court has been sort of taking a sledgehammer to

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<v Speaker 2>agency power. So what do you think will the Supreme

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<v Speaker 2>Court be supportive of Trump? They were not in his

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<v Speaker 2>last term, but they were this last year.

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<v Speaker 6>Absolutely. I mean, I think that community decision is a

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<v Speaker 6>one off. It's a terrible decision for what the Court

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<v Speaker 6>will do in the future. But the Court has adopted,

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<v Speaker 6>as you mentioned, the form of the unitary executive Authority,

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<v Speaker 6>which means the president should be able to fire any

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<v Speaker 6>policy maker at will in order to make sure that

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<v Speaker 6>all actions that are final of the government can be

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<v Speaker 6>traced to the president. So I would not be surprised

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<v Speaker 6>if the Court is sympathetic with respect to giving the

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<v Speaker 6>power to the president to fire agency head officials, including

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<v Speaker 6>most fighting We need the head of the FED, because

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<v Speaker 6>that's just another type of policy that's being administered by

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<v Speaker 6>right now, an independent agency head. But I don't think

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<v Speaker 6>that even if the Supreme Court takes that step, they

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<v Speaker 6>will expand the unitary to say that the civil service

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<v Speaker 6>is an unconstitutional Many unions right now public employee beings

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<v Speaker 6>are very concerned that the next objective of the Trump

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<v Speaker 6>administration will put the civil service in the cross hears,

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<v Speaker 6>and I think the court will be sympathetic to the

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<v Speaker 6>principles under civil service.

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<v Speaker 2>Of course, Trump is going to keep appealing to the

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<v Speaker 2>Supreme Court. That's been his pattern. But it'll be interesting

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<v Speaker 2>to see how many of these cases the justices actually

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<v Speaker 2>decide to take. Thanks so much. How that's Professor Harold

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<v Speaker 2>Krent of the Chicago Kent College of Law coming up

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<v Speaker 2>next on the Bloomberg Law Show. Why FBI agents are

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<v Speaker 2>suing the Justice Department. I'm June Grosso and you're listening

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<v Speaker 2>to Bloomberg time and time again. Donald Trump has promised

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<v Speaker 2>to exact revenge against those involved in the cases against him.

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<v Speaker 7>Look, when this election is over, based on what they've done,

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<v Speaker 7>I would have every right to go after them. And

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<v Speaker 7>it's easy and sometimes revenge can be justified, though, I

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<v Speaker 7>have to be honest, you know, sometimes it can.

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<v Speaker 2>And the President seems to be keeping those promises with

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<v Speaker 2>purges at the FBI and Justice Department, where dozens of

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<v Speaker 2>senior career officials have been pushed out and thousands more

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<v Speaker 2>FBI agents may follow them out the door. Because the

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<v Speaker 2>Justice Department has had a list compiled of all bureau

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<v Speaker 2>employees who worked on the criminal investigations into Trump or

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<v Speaker 2>the January sixth riots, to quote determine whether any additional

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<v Speaker 2>personnel actions are necessary. So two groups of FBI agents

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<v Speaker 2>went to federal court to prevent the government from disclosing

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<v Speaker 2>the names on that list, fearing it could lead to

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<v Speaker 2>retaliation against them. After all, January sixth rioters who were

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<v Speaker 2>pardoned by Trump have already taken to social media, identifying

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<v Speaker 2>prosecutors and agents who worked on their cases and making threats.

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<v Speaker 6>But I will tell you now, it's our church.

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<v Speaker 2>One of the lawsuits cites these comments by Enrique Tario,

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<v Speaker 2>the former leader of the Proud Boys, who was serving

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<v Speaker 2>a twenty two year sentence before his pardon.

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<v Speaker 6>The people who did this, they need to feel the heat.

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<v Speaker 6>They need to be put behind bars.

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<v Speaker 2>At a hearing before DC Federal Judge Giacab on Friday,

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<v Speaker 2>the US government agreed not to make that list of

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<v Speaker 2>FBI employees public, either directly or indirectly, until the judge

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<v Speaker 2>rules on the merits of the lawsuits, so a temporary solution.

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<v Speaker 2>My guest is national security law expert Brad Moss, a

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<v Speaker 2>partner at Mark Zaid. He represents the seven FBI agents

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<v Speaker 2>and the FBI Agents Association in their lawsuit against the

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<v Speaker 2>Justice Department, rad tell us what's been happening at the FBI.

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<v Speaker 3>So what's been transpiring at the moment with the FBI

0:14:10.280 --> 0:14:12.959
<v Speaker 3>and the Justice Department is that a set of instructions

0:14:13.000 --> 0:14:16.000
<v Speaker 3>came down from the White House pretty much starting from

0:14:16.120 --> 0:14:21.160
<v Speaker 3>day one, to identify everyone involved and associated with the

0:14:21.200 --> 0:14:26.320
<v Speaker 3>prosecutions and investigations not only into Donald Trump, but also

0:14:26.600 --> 0:14:30.680
<v Speaker 3>everyone who was prosecuted for the January sixth riots and

0:14:30.720 --> 0:14:35.560
<v Speaker 3>the seditious attempts. The set of prosecutors from the January

0:14:35.600 --> 0:14:38.320
<v Speaker 3>six cases that specifically were on Jack Smith's team that

0:14:38.360 --> 0:14:42.320
<v Speaker 3>went after Donald Trump. Those individuals apparently were already fired

0:14:42.600 --> 0:14:45.520
<v Speaker 3>without cause, which is something that will likely be subject

0:14:45.560 --> 0:14:49.000
<v Speaker 3>to litigation. But the more immediate and more widespread concern

0:14:49.560 --> 0:14:53.160
<v Speaker 3>is that the Just Department ordered the FBI to compile

0:14:53.240 --> 0:14:58.160
<v Speaker 3>a list identify everyone within the FBI. Special Agents Technical

0:14:58.200 --> 0:15:03.120
<v Speaker 3>Assistance supports that Fredericks xameters everything to pile list and

0:15:03.200 --> 0:15:07.040
<v Speaker 3>send it to the Justice Department to identify everyone involved

0:15:07.720 --> 0:15:12.280
<v Speaker 3>in any of the January sixth investigations and prosecutions. With

0:15:12.400 --> 0:15:14.600
<v Speaker 3>the obvious concern being not only this, it is going

0:15:14.640 --> 0:15:17.200
<v Speaker 3>to be shared with the Just Department, but also with

0:15:17.280 --> 0:15:20.080
<v Speaker 3>the White House, and that these names will be made public.

0:15:20.520 --> 0:15:23.600
<v Speaker 3>The lawsuits that were filed, there's two different lawsuits, one

0:15:23.600 --> 0:15:26.480
<v Speaker 3>of which I'm a list of attorney on are designed

0:15:26.480 --> 0:15:31.640
<v Speaker 3>to keep those names of those FBI personnel private and anonymous,

0:15:31.680 --> 0:15:35.200
<v Speaker 3>just like it's always done for government officials who are

0:15:35.200 --> 0:15:38.120
<v Speaker 3>not otherwise public facing individuals.

0:15:38.360 --> 0:15:41.600
<v Speaker 2>And the FBI has already turned over to the Justice

0:15:41.640 --> 0:15:47.520
<v Speaker 2>Department that list of some five thousand FBI employees who

0:15:47.680 --> 0:15:52.120
<v Speaker 2>worked on the criminal investigations into Trump or January sixth.

0:15:52.520 --> 0:15:55.840
<v Speaker 3>This remains the concern is what is the purpose of this,

0:15:56.400 --> 0:15:58.120
<v Speaker 3>where are they going with this, and what is the

0:15:58.120 --> 0:16:01.120
<v Speaker 3>White House plan to do with this information, because remember

0:16:01.520 --> 0:16:03.520
<v Speaker 3>one of the first things Donald Trump did was pardon

0:16:03.760 --> 0:16:08.120
<v Speaker 3>everyone convicted further actions tied to January sixth, including the

0:16:08.120 --> 0:16:12.080
<v Speaker 3>Proud Boys, including the Healthkeepers, all these violent militants who

0:16:12.080 --> 0:16:14.920
<v Speaker 3>had gone in with a plan to take down the

0:16:14.960 --> 0:16:18.600
<v Speaker 3>government to install Donald Trump after he lost in twenty twenty.

0:16:19.080 --> 0:16:22.800
<v Speaker 3>Those individuals are now publicly threatening the FBI officials who

0:16:22.880 --> 0:16:25.120
<v Speaker 3>went after them and who investigated them as part of

0:16:25.120 --> 0:16:29.200
<v Speaker 3>those prosecutions, and there's a real threat to those FBI officials'

0:16:29.280 --> 0:16:32.360
<v Speaker 3>lives and their safety to see their family members if

0:16:32.360 --> 0:16:34.080
<v Speaker 3>their names get released in.

0:16:34.000 --> 0:16:38.280
<v Speaker 2>Your lawsuit, are you concerned about dismissals or are you

0:16:38.360 --> 0:16:40.760
<v Speaker 2>only concerned about retaliation?

0:16:41.360 --> 0:16:44.600
<v Speaker 3>Right now, this is strictly about keeping the anonymity of

0:16:44.640 --> 0:16:48.960
<v Speaker 3>the names of these various officials because no other action

0:16:49.080 --> 0:16:53.560
<v Speaker 3>has been taken to actually fire these personnel. We're not

0:16:53.800 --> 0:16:57.520
<v Speaker 3>there yet on bringing a challenge to it. It's premature.

0:16:58.040 --> 0:17:01.640
<v Speaker 3>If DOJ does go through that, if there is a

0:17:01.680 --> 0:17:06.320
<v Speaker 3>mass purge of personnel, our lawsuit could obviously be amended

0:17:06.320 --> 0:17:08.200
<v Speaker 3>and updated to address that as well.

0:17:08.440 --> 0:17:11.359
<v Speaker 2>Let's talk about the grounds for your suit. Are you

0:17:11.440 --> 0:17:14.760
<v Speaker 2>suing under the First Amendment and the Federal Privacy Act?

0:17:15.000 --> 0:17:15.119
<v Speaker 8>So?

0:17:15.359 --> 0:17:19.320
<v Speaker 3>Yeah, the First and Fifth Amendment constitutional protections due process

0:17:19.359 --> 0:17:24.560
<v Speaker 3>for these individuals, particularly the stigma of being defamed essentially

0:17:24.800 --> 0:17:27.840
<v Speaker 3>an accused of miscarriage of justice by the White House

0:17:27.880 --> 0:17:31.359
<v Speaker 3>if their names are publicly released. First Amendment retaliation in

0:17:31.359 --> 0:17:33.240
<v Speaker 3>the sense that this is all about the fact that

0:17:33.280 --> 0:17:37.119
<v Speaker 3>they are not politically aligned and ideologically aligned with the

0:17:37.119 --> 0:17:39.560
<v Speaker 3>White House, which for civil servants is not something they're

0:17:39.600 --> 0:17:42.320
<v Speaker 3>supposed to be doing. They're not supposed to be political.

0:17:42.800 --> 0:17:45.639
<v Speaker 3>But also the Privacy Act, which puts strict limits on

0:17:45.800 --> 0:17:50.439
<v Speaker 3>what agencies can do with the personal identifying information of

0:17:50.560 --> 0:17:54.920
<v Speaker 3>personnel and where it can and cannot be disseminated absent

0:17:55.200 --> 0:17:58.720
<v Speaker 3>employee consent, which, to be clear, these personnel are not

0:17:58.880 --> 0:18:02.760
<v Speaker 3>giving their consent for this personal identifying information to be

0:18:02.840 --> 0:18:06.000
<v Speaker 3>disseminated outside of the FBI, let alone to the public.

0:18:06.480 --> 0:18:09.240
<v Speaker 2>I'm curious about whether a lot of people from the

0:18:09.440 --> 0:18:12.480
<v Speaker 2>FBI have approached you with their concerns about this.

0:18:13.040 --> 0:18:16.280
<v Speaker 3>So we've been approached by a myriad an untold number

0:18:16.320 --> 0:18:19.960
<v Speaker 3>of personnel across the FBI, not just in DC, but

0:18:20.000 --> 0:18:23.200
<v Speaker 3>across the country who we are representing as a part

0:18:23.240 --> 0:18:26.239
<v Speaker 3>of this collective group. There is a select number of

0:18:26.240 --> 0:18:29.760
<v Speaker 3>individuals who have agreed to be the plaintiffs in this action.

0:18:30.320 --> 0:18:33.399
<v Speaker 3>We're keeping their identities protected at the moment that the

0:18:33.440 --> 0:18:36.720
<v Speaker 3>court agreed to allow them to proceed as John Doe's

0:18:36.760 --> 0:18:39.560
<v Speaker 3>and Jane does for now. We're also working to make

0:18:39.600 --> 0:18:43.439
<v Speaker 3>sure to try to keep their identities secret from the

0:18:43.480 --> 0:18:48.120
<v Speaker 3>government itself, sadly to try to prevent and avoid retaliation

0:18:48.240 --> 0:18:51.119
<v Speaker 3>for having engaged in this section. But also the Agent

0:18:51.160 --> 0:18:55.760
<v Speaker 3>Association is also a listed plaintiff, which represents agents across

0:18:55.760 --> 0:18:59.880
<v Speaker 3>the country and has an obvious organizational interest in protecting

0:18:59.880 --> 0:19:04.920
<v Speaker 3>it's personnel from this political retribution. We want this addressed immediately.

0:19:05.119 --> 0:19:09.360
<v Speaker 3>We cannot wait with the way this administration is moving

0:19:09.480 --> 0:19:12.440
<v Speaker 3>and just this reckless, you know, move fast and break

0:19:12.480 --> 0:19:16.680
<v Speaker 3>things attitude that Elon Musk and Donald Trump have. Time

0:19:16.760 --> 0:19:19.119
<v Speaker 3>is of the essence, and every day that passes is

0:19:19.160 --> 0:19:22.120
<v Speaker 3>another day that these names could be disseminated to the public.

0:19:22.359 --> 0:19:26.399
<v Speaker 3>So everything is about moving quickly right now to halt

0:19:26.640 --> 0:19:30.560
<v Speaker 3>any dissemination until these legal issues can be resolved through

0:19:30.560 --> 0:19:31.320
<v Speaker 3>standard briefing.

0:19:31.600 --> 0:19:35.120
<v Speaker 2>There have been accusations from former Trump officials that FBI

0:19:35.240 --> 0:19:40.280
<v Speaker 2>agents went beyond their authority when they executed the search

0:19:40.320 --> 0:19:43.600
<v Speaker 2>warrants at Mara Lago. Was there any litigation or court

0:19:43.640 --> 0:19:45.840
<v Speaker 2>decisions about those accusations.

0:19:46.160 --> 0:19:50.800
<v Speaker 3>There is no merit to that. Every challenge regarding the

0:19:50.880 --> 0:19:54.080
<v Speaker 3>lawfulness of the effidavits, the lawfulness of the searches do

0:19:54.200 --> 0:19:58.000
<v Speaker 3>not even fly in motions before Judge Cannon. There has

0:19:58.040 --> 0:20:02.679
<v Speaker 3>been zero valid claim that these officials went beyond the

0:20:02.680 --> 0:20:07.320
<v Speaker 3>scope of their authority or otherwise violated Donald Trump's Fourth

0:20:07.359 --> 0:20:11.359
<v Speaker 3>Amendment rights with respect to his actual property that was

0:20:11.359 --> 0:20:16.000
<v Speaker 3>at mar Lago. This is political hatchet jobs, smearing by

0:20:16.080 --> 0:20:20.400
<v Speaker 3>individuals trying to color it as being an issue of misconduct.

0:20:20.800 --> 0:20:24.320
<v Speaker 3>If they had actual, verified claims of misconduct against any

0:20:24.359 --> 0:20:26.680
<v Speaker 3>of these officials, they could bring it through the normal

0:20:26.720 --> 0:20:30.320
<v Speaker 3>administrative process. They don't want to do that because they

0:20:30.359 --> 0:20:32.840
<v Speaker 3>know those claims won't hold up to scrutiny.

0:20:33.320 --> 0:20:36.520
<v Speaker 2>And so big picture, what you're saying is these are

0:20:36.680 --> 0:20:39.960
<v Speaker 2>FBI agents who were doing their jobs, who were doing

0:20:40.000 --> 0:20:41.560
<v Speaker 2>what they were assigned to do.

0:20:42.000 --> 0:20:44.480
<v Speaker 3>Correct and not just I don't ever want to go

0:20:44.520 --> 0:20:46.960
<v Speaker 3>with thee We're just doing our jobs lined because that

0:20:47.040 --> 0:20:49.960
<v Speaker 3>harkens back to World War Two. These were people following

0:20:50.119 --> 0:20:55.240
<v Speaker 3>lawful orders to investigate potential crime in the sense of

0:20:55.960 --> 0:20:58.960
<v Speaker 3>the attack on the capital of January sixth, as well

0:20:59.000 --> 0:21:03.360
<v Speaker 3>as the unauthorized retention of classified documents at Mara a Lago.

0:21:03.600 --> 0:21:07.240
<v Speaker 3>Those are existing crimes. There was a standard investigation. The

0:21:07.320 --> 0:21:11.359
<v Speaker 3>only quote unquote misconduct they did was they dared to

0:21:11.400 --> 0:21:14.159
<v Speaker 3>be part of an investigation into Donald Trump. And the

0:21:14.359 --> 0:21:17.359
<v Speaker 3>point that this White House is trying to push is

0:21:17.359 --> 0:21:20.400
<v Speaker 3>that people like Donald Trump and his friends and allies

0:21:20.720 --> 0:21:24.280
<v Speaker 3>are above the law and can never be investigated.

0:21:25.000 --> 0:21:28.520
<v Speaker 2>There have been many controversies in the history of the FBI,

0:21:28.880 --> 0:21:31.680
<v Speaker 2>But have you ever heard of anything like this with

0:21:31.920 --> 0:21:35.160
<v Speaker 2>possible retaliation against thousands of agents.

0:21:35.720 --> 0:21:39.200
<v Speaker 3>This makes you think of, you know, the Hoover days

0:21:39.240 --> 0:21:45.919
<v Speaker 3>in terms of the idea of such blanket politicization of

0:21:46.040 --> 0:21:50.000
<v Speaker 3>the just Department of the FBI. We moved beyond that

0:21:50.280 --> 0:21:53.800
<v Speaker 3>after Hoover for a reason. The civil service that its

0:21:53.840 --> 0:21:59.120
<v Speaker 3>protections exist for a reason. We're trying to move beyond

0:21:59.200 --> 0:22:01.760
<v Speaker 3>the flaws and the states of the part of our

0:22:01.800 --> 0:22:04.399
<v Speaker 3>past in this country, not just in the FBI, but

0:22:04.480 --> 0:22:07.760
<v Speaker 3>in the political system itself. To allow Donald Trump to

0:22:07.800 --> 0:22:11.520
<v Speaker 3>do what he's trying to do would cripple the existing

0:22:11.560 --> 0:22:14.560
<v Speaker 3>system and bring us back to the days of Tammany

0:22:14.600 --> 0:22:19.240
<v Speaker 3>hall and blanket abuses of power. We cannot go back

0:22:19.280 --> 0:22:21.760
<v Speaker 3>to that. That is why these losses are beinging brought.

0:22:22.080 --> 0:22:24.639
<v Speaker 3>That is why lawyers like us are standing up to

0:22:24.760 --> 0:22:26.160
<v Speaker 3>protect these individuals.

0:22:26.320 --> 0:22:30.120
<v Speaker 2>During her confirmation hearings, Pambondi, who's now the Attorney General,

0:22:30.640 --> 0:22:35.680
<v Speaker 2>assured senators that she wouldn't retaliate against Justice Departments staff

0:22:36.160 --> 0:22:40.639
<v Speaker 2>simply because they'd been assigned to cases involving Trump, and

0:22:40.680 --> 0:22:44.119
<v Speaker 2>that the weaponization of the Justice Department was over.

0:22:44.760 --> 0:22:48.360
<v Speaker 9>I will not politicize that office. I will not target

0:22:48.480 --> 0:22:51.680
<v Speaker 9>people simply because of their political affiliation.

0:22:52.240 --> 0:22:57.000
<v Speaker 10>Finally, during her confirmation hearing, Pambondy, who's now the Attorney General,

0:22:57.080 --> 0:23:01.320
<v Speaker 10>assured senators that she wouldn't retaliate against Else's department staff

0:23:01.440 --> 0:23:04.760
<v Speaker 10>simply because they've been assigned to cases involving Trump.

0:23:05.080 --> 0:23:08.680
<v Speaker 9>I will not politicize that office. I will not target

0:23:08.800 --> 0:23:12.000
<v Speaker 9>people simply because of their political affiliation.

0:23:12.520 --> 0:23:17.520
<v Speaker 2>Trump's pick for FBI Director, Cash Patel, also testified that

0:23:17.640 --> 0:23:21.280
<v Speaker 2>he wouldn't seek retribution against the President's adversaries.

0:23:21.840 --> 0:23:24.360
<v Speaker 8>The only thing that will matter if I'm confirmed as

0:23:24.359 --> 0:23:28.480
<v Speaker 8>a director of the FBI is a de weaponized, depoliticized

0:23:28.480 --> 0:23:33.040
<v Speaker 8>system of law enforcement, completely devoted to rigorous obedience of

0:23:33.080 --> 0:23:33.800
<v Speaker 8>the Constitution.

0:23:34.320 --> 0:23:37.919
<v Speaker 2>Do their statements give you any reassurance that retribution at

0:23:37.920 --> 0:23:40.160
<v Speaker 2>the Justice Department will be stopped?

0:23:41.000 --> 0:23:47.439
<v Speaker 3>None? Those promises, those reassurances mean nothing more than the

0:23:47.640 --> 0:23:53.080
<v Speaker 3>reassurances given by certain Supreme Court nominees about the sanctity

0:23:53.160 --> 0:23:58.000
<v Speaker 3>of Roe v. Wade. Their politicized you know, cover your

0:23:58.200 --> 0:24:02.119
<v Speaker 3>your end statements that were made to get appointed, to

0:24:02.240 --> 0:24:07.280
<v Speaker 3>get confirmed, that they will happily circumvent and throw out

0:24:07.280 --> 0:24:10.840
<v Speaker 3>the window once they're in power, knowing that there's no

0:24:10.880 --> 0:24:14.240
<v Speaker 3>one who's going to do anything to stop them, certainly

0:24:14.320 --> 0:24:17.720
<v Speaker 3>not the existing majority in the House or Senate. They

0:24:17.760 --> 0:24:20.959
<v Speaker 3>have no interest in going after these officials if they

0:24:21.040 --> 0:24:23.920
<v Speaker 3>end up doing what they promised they would not do.

0:24:24.119 --> 0:24:26.679
<v Speaker 3>And those officials like Pam Bonding know that.

0:24:27.119 --> 0:24:29.520
<v Speaker 2>Thanks so much for being on the show, Brad. That's

0:24:29.560 --> 0:24:33.320
<v Speaker 2>Brad Moss of Mark Zaid. Coming up next. The Trump

0:24:33.359 --> 0:24:37.320
<v Speaker 2>administration's first anti trust suit. I'm June Gross. When you're

0:24:37.359 --> 0:24:40.720
<v Speaker 2>listening to Bloomberg. It didn't take very long for the

0:24:40.760 --> 0:24:44.800
<v Speaker 2>Trump Justice Department to file its first anti trust lawsuit.

0:24:45.080 --> 0:24:49.399
<v Speaker 2>The government sued to block Hewlett Packard Enterprises fourteen billion

0:24:49.480 --> 0:24:53.480
<v Speaker 2>dollar acquisition of Juniper Networks, arguing to tie up with

0:24:53.640 --> 0:24:58.600
<v Speaker 2>harm competition in the market for enterprise wireless equipment used

0:24:58.600 --> 0:25:03.000
<v Speaker 2>by large companies, diversities, and hospitals. The government says the

0:25:03.080 --> 0:25:08.680
<v Speaker 2>deal would consolidate the sector from three major players HPE, Juniper,

0:25:08.760 --> 0:25:12.920
<v Speaker 2>and Cisco Systems down to two that would control seventy

0:25:12.960 --> 0:25:17.440
<v Speaker 2>percent of the market. But Antonio'neary, the CEO of HPE,

0:25:17.680 --> 0:25:20.800
<v Speaker 2>told Bloomberg that the DOJ's reasoning is flawed.

0:25:21.520 --> 0:25:24.280
<v Speaker 11>We believe there is no case here. This is pro competitive.

0:25:24.720 --> 0:25:28.840
<v Speaker 11>We will bring it two complementary technologies together, which also

0:25:28.920 --> 0:25:31.960
<v Speaker 11>will enable us to compete outside the United States in

0:25:32.000 --> 0:25:34.600
<v Speaker 11>the context of the previous competition we have with Josh

0:25:35.000 --> 0:25:38.520
<v Speaker 11>against the Chinese vendors in the context of national security,

0:25:38.520 --> 0:25:41.639
<v Speaker 11>particularly in cloud and the service provider space.

0:25:42.119 --> 0:25:45.080
<v Speaker 2>Joining me is anti trust expert Harry First, a professor

0:25:45.119 --> 0:25:49.800
<v Speaker 2>at NYU Law School. Harry Many expected the Trump administration

0:25:50.040 --> 0:25:53.400
<v Speaker 2>to sort of ease up on the aggressive anti trust

0:25:53.560 --> 0:25:57.399
<v Speaker 2>enforcement by the Biden administration. Is it a surprise that

0:25:57.440 --> 0:25:59.880
<v Speaker 2>they brought an anti trust lawsuit so soon.

0:26:00.359 --> 0:26:03.480
<v Speaker 12>It's a surprise, yes, that they didn't wait for the

0:26:03.560 --> 0:26:07.000
<v Speaker 12>new team really to be in place. And the complaint

0:26:07.119 --> 0:26:11.639
<v Speaker 12>is very much a Biden administration type complaint. It's written

0:26:11.800 --> 0:26:16.480
<v Speaker 12>like and refers to the merger guidelines that were adopted

0:26:16.560 --> 0:26:20.560
<v Speaker 12>during the Biden administration. So it's curious. I don't know.

0:26:20.640 --> 0:26:24.520
<v Speaker 12>Maybe they're acting Assistant Attorney General just never got the memo,

0:26:24.640 --> 0:26:29.640
<v Speaker 12>doesn't read his emails. I can't quite explain why they

0:26:29.720 --> 0:26:32.760
<v Speaker 12>decided to go ahead with this, unless there was some

0:26:32.960 --> 0:26:36.280
<v Speaker 12>time pressure on the deal, I'm not certain about that.

0:26:37.000 --> 0:26:41.320
<v Speaker 2>Is the acting Assistant Attorney General, a Trump appointee, does

0:26:41.359 --> 0:26:44.160
<v Speaker 2>he have experience in the anti trust division.

0:26:44.840 --> 0:26:50.560
<v Speaker 12>So the complaint is signed by the acting Assistant Attorney General,

0:26:50.880 --> 0:26:54.280
<v Speaker 12>who was put in place over the person who would

0:26:54.320 --> 0:26:57.880
<v Speaker 12>normally have been put in place for this position. So

0:26:58.160 --> 0:27:01.960
<v Speaker 12>the way it's gone, particularly recent times, is the most

0:27:01.960 --> 0:27:07.600
<v Speaker 12>apolitical person in the division is appointed as acting It's

0:27:07.680 --> 0:27:10.960
<v Speaker 12>usually it's the head of criminal enforcement, which is really

0:27:11.040 --> 0:27:13.679
<v Speaker 12>a political is no one who says, oh, no, we

0:27:13.800 --> 0:27:18.080
<v Speaker 12>like cartels and we think they should flourish, so enforcement

0:27:18.119 --> 0:27:21.119
<v Speaker 12>against cartels. No one objects to that that I know of.

0:27:21.320 --> 0:27:25.320
<v Speaker 12>So the person who was head of criminal enforcement was

0:27:25.400 --> 0:27:32.119
<v Speaker 12>instead reassigned to an immigration unit, which of course is

0:27:32.320 --> 0:27:35.040
<v Speaker 12>presumably something they reassigned them to so that he would

0:27:35.080 --> 0:27:39.720
<v Speaker 12>then leave the same as Manish Kumar. Fine guy, I mean,

0:27:40.119 --> 0:27:43.240
<v Speaker 12>you know, he couldn't have been on anybody's enemies list

0:27:43.280 --> 0:27:46.320
<v Speaker 12>that I can imagine. So they reassigned him to it's

0:27:46.320 --> 0:27:51.560
<v Speaker 12>a sanctuary city's task force. It's ridiculous to a waste

0:27:51.600 --> 0:27:55.480
<v Speaker 12>of his talent. And then they brought in this person

0:27:55.520 --> 0:27:58.520
<v Speaker 12>who has just been in the any trust divisions, just

0:27:58.600 --> 0:28:01.199
<v Speaker 12>joined last year. He's been in the White House Counsel's Office,

0:28:01.400 --> 0:28:04.959
<v Speaker 12>in the prior Trump administration, so they appointed him as

0:28:05.000 --> 0:28:08.440
<v Speaker 12>acting head. But why he decided to go ahead and

0:28:08.480 --> 0:28:12.680
<v Speaker 12>sign this complaint, I honestly do not know. And why

0:28:12.720 --> 0:28:16.320
<v Speaker 12>he couldn't wait for Gail Slater to be confirmed, which

0:28:16.320 --> 0:28:18.560
<v Speaker 12>I assume she will be to review it. So I

0:28:18.560 --> 0:28:19.760
<v Speaker 12>don't know the answer to that.

0:28:20.200 --> 0:28:24.640
<v Speaker 2>So, I mean, they're assigning environmental lawyers to that sanctuary

0:28:24.800 --> 0:28:28.440
<v Speaker 2>Cities unit, whatever it is. But these people have expertise,

0:28:28.880 --> 0:28:31.520
<v Speaker 2>this guy, for example, in anti trust or environment and

0:28:31.560 --> 0:28:33.880
<v Speaker 2>they're setting them to a totally different.

0:28:34.040 --> 0:28:37.000
<v Speaker 12>Well, it's a political I mean, just the name of it.

0:28:37.040 --> 0:28:39.400
<v Speaker 12>I don't know for sure, but just the name of it.

0:28:39.400 --> 0:28:42.200
<v Speaker 12>It's something designed too, I don't know, rub their noses

0:28:42.240 --> 0:28:44.959
<v Speaker 12>in it. It's a perversion of any good use of

0:28:45.040 --> 0:28:48.880
<v Speaker 12>talent and designed to humiliate them. I don't know. But

0:28:49.080 --> 0:28:52.000
<v Speaker 12>I was sort of shocked that they did that to Kumar.

0:28:52.440 --> 0:28:55.800
<v Speaker 12>It doesn't make sense, you know, in anybody's world. And

0:28:56.000 --> 0:28:58.479
<v Speaker 12>for all I know, he might have been more moderate

0:28:58.520 --> 0:29:00.320
<v Speaker 12>and said, you know, we should hold up and for

0:29:00.480 --> 0:29:03.680
<v Speaker 12>the new head of the division to be approved by

0:29:03.760 --> 0:29:07.040
<v Speaker 12>the Senate. So it's sort of a curious turn of

0:29:07.160 --> 0:29:10.800
<v Speaker 12>events that, you know, this complaint is the result.

0:29:11.120 --> 0:29:12.440
<v Speaker 2>So tell us about the deal.

0:29:13.040 --> 0:29:15.520
<v Speaker 12>Okay, So this is a deal that was announced in

0:29:15.640 --> 0:29:19.920
<v Speaker 12>January of twenty twenty four, so it's been sitting there

0:29:20.000 --> 0:29:24.040
<v Speaker 12>for a little while under investigation. And it involves the

0:29:24.560 --> 0:29:30.280
<v Speaker 12>w land industry, wireless local area network industry, but on

0:29:30.320 --> 0:29:32.920
<v Speaker 12>the commercial scale, not the routers that you and I

0:29:33.040 --> 0:29:36.280
<v Speaker 12>have in our houses that create this little local area

0:29:36.320 --> 0:29:39.240
<v Speaker 12>network that we can connect to wherever we are in

0:29:39.280 --> 0:29:45.040
<v Speaker 12>the house. But you know, for enterprises, universities, offices, big

0:29:45.080 --> 0:29:50.280
<v Speaker 12>companies that need to connect all their employees wirelessly wherever

0:29:50.320 --> 0:29:53.880
<v Speaker 12>they're working to some access point. So it's all the

0:29:53.920 --> 0:29:59.680
<v Speaker 12>equipment necessary for putting those wireless local area networks together.

0:30:00.040 --> 0:30:04.520
<v Speaker 12>And Cisco is the leader worldwide and in the United

0:30:04.520 --> 0:30:09.240
<v Speaker 12>States apparently, and according to the complaint, it's market share

0:30:09.520 --> 0:30:14.440
<v Speaker 12>is more than twice what HPE Hewlett Packard Enterprises market

0:30:14.480 --> 0:30:19.600
<v Speaker 12>share is. HP is second in the US market. And Juniper,

0:30:19.720 --> 0:30:23.640
<v Speaker 12>the company being acquired by HPE, it's not clear where

0:30:23.680 --> 0:30:26.880
<v Speaker 12>they sit in the market. The complaint doesn't say they're third,

0:30:27.280 --> 0:30:30.400
<v Speaker 12>so maybe they're not quite third in the market. Maybe

0:30:30.440 --> 0:30:33.320
<v Speaker 12>they're fourth or fifth, but I don't know. Their market

0:30:33.320 --> 0:30:36.240
<v Speaker 12>shares vary around the world. In different markets, but they're

0:30:36.320 --> 0:30:40.640
<v Speaker 12>smaller than HPE, so Cisco's market share is more than

0:30:40.680 --> 0:30:44.240
<v Speaker 12>twice what HPEES is, so they really dominate the market.

0:30:44.640 --> 0:30:47.680
<v Speaker 12>And the combined market share of the three firms now,

0:30:48.040 --> 0:30:53.000
<v Speaker 12>the Justice Department complaints says, will be more than seventy percent,

0:30:53.720 --> 0:30:58.400
<v Speaker 12>so a very concentrated market. And the increase in concentration,

0:30:58.520 --> 0:31:03.440
<v Speaker 12>which is a key figure for merger enforcement, is over

0:31:03.680 --> 0:31:08.960
<v Speaker 12>the thresholds for highly concentrated market where there's a presumption

0:31:09.720 --> 0:31:13.920
<v Speaker 12>that competition may be substantially lessened in the future. So

0:31:14.200 --> 0:31:18.240
<v Speaker 12>the market's highly concentrated at the increases over the thresholds.

0:31:18.320 --> 0:31:21.880
<v Speaker 12>And again according to the twenty twenty three guidelines which

0:31:21.960 --> 0:31:26.000
<v Speaker 12>the complaint sites, that's presume to violate the law, and

0:31:26.160 --> 0:31:28.560
<v Speaker 12>that's sort of the core of the case.

0:31:28.840 --> 0:31:31.680
<v Speaker 2>Will there be questions about market definition or anything like that,

0:31:31.800 --> 0:31:33.080
<v Speaker 2>or is it pretty clear.

0:31:33.120 --> 0:31:36.440
<v Speaker 12>There are always questions about our definition because as we know,

0:31:36.920 --> 0:31:39.800
<v Speaker 12>this is what any trust lawyers love, And yes, there

0:31:39.920 --> 0:31:43.520
<v Speaker 12>will probably be some, but I'm not sure in the

0:31:43.640 --> 0:31:46.200
<v Speaker 12>end that that's going to be the thing that matters,

0:31:46.240 --> 0:31:49.160
<v Speaker 12>even though the parties will fight over it. What makes

0:31:49.200 --> 0:31:52.480
<v Speaker 12>the case more interesting is that this merger was cleared

0:31:52.800 --> 0:31:59.200
<v Speaker 12>by the European Commission and by the UK Competition Markets Authority,

0:31:59.280 --> 0:32:02.400
<v Speaker 12>the CMA. So both of them cleared this merger in

0:32:02.520 --> 0:32:06.480
<v Speaker 12>August finding really no problems, and what had been the

0:32:06.520 --> 0:32:11.720
<v Speaker 12>pattern during the Biden administration had generally been all three

0:32:11.760 --> 0:32:15.840
<v Speaker 12>of those agencies were in agreement on most of the

0:32:15.840 --> 0:32:19.400
<v Speaker 12>controversial mergers. They were not out of step. They all

0:32:19.480 --> 0:32:23.640
<v Speaker 12>agreed that they violated European law or law in the

0:32:23.760 --> 0:32:27.360
<v Speaker 12>United Kingdom or the United States. So this is unusual

0:32:27.760 --> 0:32:30.840
<v Speaker 12>in the sense that the US is trying to block

0:32:30.880 --> 0:32:33.600
<v Speaker 12>a merger that the other two just didn't go any

0:32:33.600 --> 0:32:37.200
<v Speaker 12>further with. They both issued reports saying, hey, no problem.

0:32:37.600 --> 0:32:40.640
<v Speaker 2>What's gotten a lot of attention is a memo in

0:32:40.760 --> 0:32:46.000
<v Speaker 2>twenty twenty one from an HPE sales leader encouraging his

0:32:46.120 --> 0:32:52.080
<v Speaker 2>team to quote kill missed, exclamation point, exclamation point, exclamation point,

0:32:52.160 --> 0:32:54.880
<v Speaker 2>and on and on. There were like forty exclamation points,

0:32:55.320 --> 0:32:58.640
<v Speaker 2>and missed was the name of Juniper's competing product.

0:32:59.240 --> 0:33:02.560
<v Speaker 12>We love those memos. Yeah, that's the kind of thing.

0:33:02.600 --> 0:33:05.280
<v Speaker 12>When NHS lawyers do that, they go, oh my god,

0:33:05.480 --> 0:33:09.400
<v Speaker 12>we cannot suppress those else people. You know, they keep

0:33:09.480 --> 0:33:13.600
<v Speaker 12>using language that get us into trouble, and yes, that's

0:33:13.600 --> 0:33:17.440
<v Speaker 12>featured prominently in the complaint. Who wouldn't feature that prominently

0:33:17.480 --> 0:33:20.520
<v Speaker 12>in the complaint? But in a number of these cases,

0:33:20.760 --> 0:33:24.880
<v Speaker 12>those sorts of kill memos are often used where the

0:33:25.040 --> 0:33:29.040
<v Speaker 12>conduct is exclusionary. In other words, the idea it was,

0:33:29.440 --> 0:33:32.080
<v Speaker 12>you know, will cut off their air supply. This is

0:33:32.120 --> 0:33:34.680
<v Speaker 12>back in the old Microsoft case. They were in a

0:33:35.080 --> 0:33:38.719
<v Speaker 12>browser war, and that was the colorful language, but it

0:33:38.760 --> 0:33:41.440
<v Speaker 12>was to exclude them from the market. These memos are

0:33:41.440 --> 0:33:44.360
<v Speaker 12>a little different in the sense that he's telling his

0:33:44.680 --> 0:33:48.239
<v Speaker 12>group to really compete hard and win these contracts. So

0:33:48.800 --> 0:33:53.120
<v Speaker 12>the more specific parts, beyond the concentration in the market,

0:33:53.480 --> 0:33:56.360
<v Speaker 12>is that these are head to head competitors that often

0:33:56.440 --> 0:34:00.840
<v Speaker 12>competed for contracts with the same parties, the same buyers,

0:34:01.160 --> 0:34:04.480
<v Speaker 12>and this merger will eliminate that head to head competition

0:34:04.880 --> 0:34:07.640
<v Speaker 12>that had produced lower prices. So it's kill was not

0:34:07.680 --> 0:34:12.200
<v Speaker 12>so much exclusionary, you know, as in kill, but quite hard.

0:34:12.280 --> 0:34:13.719
<v Speaker 12>However you want to look at it, and that's what

0:34:13.800 --> 0:34:16.480
<v Speaker 12>I think the defense will say. So what you're witnessing

0:34:16.640 --> 0:34:20.560
<v Speaker 12>is competition. So every time we have competition, you can't say,

0:34:20.600 --> 0:34:23.360
<v Speaker 12>oh my god, let's cry foul. This is what we want.

0:34:23.640 --> 0:34:26.960
<v Speaker 2>I mean, is there any doubt that consumers benefit from

0:34:27.000 --> 0:34:30.440
<v Speaker 2>having three players in the market rather than two.

0:34:30.600 --> 0:34:34.600
<v Speaker 12>Well, I'd be a little cautious about three rather than two.

0:34:34.719 --> 0:34:38.520
<v Speaker 12>The complaint doesn't say there aren't others, and in fact,

0:34:38.520 --> 0:34:41.319
<v Speaker 12>at one point the complaint says, there are many suppliers,

0:34:41.520 --> 0:34:44.200
<v Speaker 12>and if you look at the markets described both in

0:34:44.239 --> 0:34:47.640
<v Speaker 12>the UK and in Europe, there are obviously more players,

0:34:48.040 --> 0:34:52.920
<v Speaker 12>and so there are other sources of supply, and so

0:34:53.880 --> 0:34:56.920
<v Speaker 12>presumably they will argue, well, we are head to head competitors,

0:34:56.960 --> 0:34:59.759
<v Speaker 12>but we're also head to head competitors with other suppliers.

0:35:00.040 --> 0:35:04.960
<v Speaker 12>And if now after the merger, the new HPE Juniper

0:35:05.320 --> 0:35:08.360
<v Speaker 12>decides to try to raise its price, customers will just

0:35:08.400 --> 0:35:12.640
<v Speaker 12>switch to the other suppliers like Hey, Cisco which has

0:35:12.719 --> 0:35:16.160
<v Speaker 12>seventy percent of the market, or other small suppliers.

0:35:16.440 --> 0:35:19.080
<v Speaker 2>Does the government have a strong case here, you think so?

0:35:19.200 --> 0:35:21.880
<v Speaker 12>In one sense, yes, if they get a court that's

0:35:22.040 --> 0:35:25.040
<v Speaker 12>willing to stick with the twenty twenty three guidelines that

0:35:25.160 --> 0:35:30.080
<v Speaker 12>emphasize the highly concentrated market, increase in concentration creating a

0:35:30.120 --> 0:35:35.040
<v Speaker 12>presumption and says okay, it's up to you HPE and

0:35:35.160 --> 0:35:39.720
<v Speaker 12>Juniper to justify this merger, to show why it will

0:35:39.760 --> 0:35:43.960
<v Speaker 12>increase competition, what the pro competitive effects are. So if

0:35:43.960 --> 0:35:47.359
<v Speaker 12>they can convince a judge to shift the burden over

0:35:47.480 --> 0:35:51.200
<v Speaker 12>to the defendants to justify the deal, then I think that's,

0:35:51.239 --> 0:35:53.560
<v Speaker 12>you know, they have a shot at it. They obviously

0:35:53.640 --> 0:35:57.919
<v Speaker 12>have some business documents that show this head to head competition.

0:35:58.520 --> 0:36:03.319
<v Speaker 12>I don't know whether they have testimony from buyers of

0:36:03.360 --> 0:36:06.640
<v Speaker 12>this equipment saying we're afraid that prices are going to

0:36:06.680 --> 0:36:09.479
<v Speaker 12>go up if the deal goes through, So it would

0:36:09.520 --> 0:36:11.880
<v Speaker 12>be helpful to them if they have testimony like this.

0:36:12.360 --> 0:36:15.800
<v Speaker 12>But it's possible that they'll be able to convince the

0:36:15.880 --> 0:36:18.920
<v Speaker 12>district court judge to go ahead and stop the merger.

0:36:19.239 --> 0:36:22.760
<v Speaker 12>But the reason why I'm hesitant is that fictions and

0:36:22.960 --> 0:36:25.799
<v Speaker 12>you know, the theory that's being advanced, the head to

0:36:25.880 --> 0:36:29.880
<v Speaker 12>head competition theory was pretty much sloughed off in both

0:36:29.920 --> 0:36:31.080
<v Speaker 12>of those jurisdictions.

0:36:31.480 --> 0:36:36.480
<v Speaker 2>Business leaders thought that this administration would be more amenable

0:36:36.640 --> 0:36:40.520
<v Speaker 2>to deals involving tech companies, just more amenable to M

0:36:40.520 --> 0:36:42.719
<v Speaker 2>and A. Is it too soon to tell whether it

0:36:42.800 --> 0:36:45.399
<v Speaker 2>will be with this one lawsuit, I.

0:36:45.360 --> 0:36:49.120
<v Speaker 12>Would be hesitant to draw much, if anything, from this

0:36:49.480 --> 0:36:52.200
<v Speaker 12>one case. Because the person who's going to make these

0:36:52.200 --> 0:36:54.839
<v Speaker 12>decisions is just not in place. Unless I had some

0:36:54.920 --> 0:36:59.400
<v Speaker 12>intelligence indicating that the acting head really was acting in

0:36:59.440 --> 0:37:02.480
<v Speaker 12>a way that he knew was consistent with what the

0:37:02.520 --> 0:37:04.799
<v Speaker 12>incoming had wanted, I would view this as a one

0:37:04.840 --> 0:37:07.879
<v Speaker 12>off and not make predictions what the future might hold

0:37:08.160 --> 0:37:12.359
<v Speaker 12>until we really see what new heads of the two

0:37:12.400 --> 0:37:15.920
<v Speaker 12>agencies do with the twenty twenty three merger guidelines.

0:37:16.239 --> 0:37:19.720
<v Speaker 2>Always a pleasure, Harry, Thank you. That's Professor Harry First

0:37:19.719 --> 0:37:22.399
<v Speaker 2>of NYU Law School, and that's it for this edition

0:37:22.440 --> 0:37:25.080
<v Speaker 2>of the Bloomberg Law Show. Remember you can always get

0:37:25.080 --> 0:37:28.239
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0:37:28.280 --> 0:37:32.360
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0:37:36.800 --> 0:37:39.759
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