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Trump Fending Off New Controversies; Hoboken Terminal Remains Shut After Crash; Wells Fargo CEO Grilled On Firings. Aired 5:30-6a ET

Aired September 30, 2016 - 05:30   ET


[05:30:00] JOHN BERMAN, CNN HOST: This, despite the foundation claiming to raise nearly $1.7 million this year, alone.

One of the key words they're looking into here is the word 'solicit' -- whether the foundation actively asked for donations. For many years, Trump was the only donor to the foundation but he hasn't given a cent since 2008. Other donors, though, have given $4.3 million, and if they were solicited in any way it would seem to violate the spirit of the law.

David Fahrenthold, who broke the story in "The Washington Post", told CNN's Anderson Cooper that by not registering one of the things Trump might have been doing is avoiding what could be a damaging audit.


DAVID FAHRENTHOLD, REPORTER, "THE WASHINGTON POST" (via telephone): If he had to register every year he would have an independent auditor comb through the books of the foundation, look at all the checks, look at -- and specifically ask the question did Donald Trump's foundation spend money that benefitted Donald Trump in a way that it wasn't supposed to? And we're starting to see allegations where that seems to have happened over the years, and if he'd been required to go through these regular audits they might have found it earlier.


BERMAN: New York attorney general Eric Schneiderman declined to comment on whether he is investigating the foundation's lack of registration, but he has discussed launching a probe after "The Washington Post" reported that the foundation made expenditures that benefitted Trump and his businesses. No comment yet from the Trump campaign.

ALISON KOSIK, CNN HOST: So much to talk about in politics land. Let's go to senior media correspondent Brian Stelter. He's host of CNNs "RELIABLE SOURCES". Good morning, thanks for waking up --


KOSIK: -- so early for us.

STELTER: Thank you. KOSIK: So, I wanted to go back to Donald Trump continuing to drag out kind of his sour grapes from his debate performance and denying that he was baited into attacking former Miss Universe, Alicia Machado. Listen to what he said. He keeps -- he keeps sort of bringing this forward.



NH1 NEWS REPORTER: Back in Monday's debate -- going into that debate a lot of people said that Hillary Clinton was going to try to bait you and some people say maybe you took the bait. Will you be more disciplined, maybe, in the second debate?

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I don't think I took the bait. You know, every online poll had me winning the debate, so -- every single one of them -- many of them. So look, I found it to be an amazing experience, actually. We had 88 million people or something around that number and I just found it to be an amazing experience. You know, I think we did well. I think I did -- you know, I'm very happy with the way it turned out.


KOSIK: OK, we'll get to the online polling in just a bit, but just to go back to what the strategy is going to be for the Trump camp in the next debate. There feels like -- it feels like there's a desperation going on here because of his performance that the real polls say that he just lost the debate.

STELTER: And more polls will be coming out in the days to come. We'll see what the reverberations are from the debate on Monday as we head into the V.P. debate next Tuesday. There have been a number of online Web surveys or, as you said, John, contests that show Trump winning. And those are easily manipulated which is why it's a shame Trump keeps mentioning them and citing them as if they're real. He's confusing and conflating real scientific polls with these unscientific surveys.

BERMAN: One of the things that's interesting as we keep saying that Donald Trump was baited in the debate into bringing up Alicia Machado --


BERMAN: -- he didn't really address it in the debate. Hillary Clinton brought it up in the debate, dangled it out there, and then everyone moved on. But it was Donald Trump, himself, who brought it up the next morning --


BERMAN: -- and he keeps bringing it up, including right now. Donald Trump or someone in his Twitter account is awake watching EARLY START or is awake right now tweeting furiously about Alicia Machado. STELTER: It started on Monday, now it's Friday and he's talking more about her.

KOSIK: Doesn't he realize this is not helping him?

BERMAN: It's not this we were actually talking about right here. He said, you know, "Using Alicia M. in the debate as a paragon of virtue just shows that Hillary suffers from bad judgment! Hillary was set up by a con." I mean --

STELTER: He's talking about an alleged sex tape in her past, he's questioning her citizenship. He is ensuring that there will be several news cycles today, all about Alicia Machado. That, of course, is the last thing his advisers want him to do. I believe it is him on Twitter this morning because none of his advisers would write these kinds of tweets and encourage him to keep this storyline going.

By the way, if this is who Clinton had in her back pocket of the first debate, who does she have for the second debate? Who will she bring up in the third debate? Clearly, there's a strategy here by the Clinton campaign to do a P.R. blitz around these people that have had issues with Trump in the past. And if she brought up this woman in the first debate I really wonder who's coming later.

KOSIK: And you wonder what's coming down the pike for the next debate, as well. There's more talk for each side bringing up the marital history of each candidate. We got an idea of this at a rally from Trump himself. Listen to this.


UNIDENTIFIED FEMALE: There is a "Daily News" report that said that -- (wrong video).

TRUMP: The Clintons are the sordid past. We will be the very bright and clean future. While our campaign outlines big changes and bold solutions to make your life better, the Clinton campaign focuses only on small and petty distractions. This will be the year the American people say, finally, enough is enough.


[05:35:00] KOSIK: OK, so in case you're wondering, we didn't want to forget Jeb Bush. We wanted to show a picture of him real fast -- just kidding. You know, this is an indication that this campaign season is ugly right now. It's going to get uglier if each side starts bringing up the marital history at a debate. It's going to get downright smutty.

STELTER: Do either of you ever miss 2008 or 2012 -- candidates like Romney, and McCain, and Obama? There was so little sex talk back then and it feels that that is where we're heading in October.

This is in some ways the ultimate -- the sort of inevitable conclusion to a campaign season involving Trump and Clinton especially because there is, for the first time, a female nominee of a major party and because of Trump's history with women. It feels like for better or worse, and I would say it's for worse as a media critic, we're going to end up in this very kind of sordid place weeks before the election.

BERMAN: Let's all -- since we were all sleeping, allegedly, at 11:30 last night and may have missed one of the late-night comedy shows -- Jimmy Fallon, on "The Tonight Show", had Vice President Biden on last night and Vice President Biden went right after Donald Trump. Let's listen.


JIMMY FALLON, HOST, NBC "THE TONIGHT SHOW STARRING JIMMY FALLON": We should talk about the debate. Did you watch it? (LAUGHTER)

JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: (Makingthe sign of the cross) Bless me, Father, for I'm about to sin. What amazes me about Donald Trump -- and it's not about -- he's probably a decent guy, but it's his lack of sensibilities. I mean, the way he talks about, you know, well, you know, I was rooting for the housing market to fail and -- because that's business. That's not business, that's callous. I mean, that's not business. Or that I paid no taxes and that makes me smart. What does it make the rest of us, suckers?


BERMAN: So, you know, Joe Biden, in a way an ambassador to the white working class for Hillary Clinton, but the Clinton team has had many of its surrogates out in places like this reaching out in places like this reaching out --


BERMAN: -- to millennial voters. You have Joe Biden on "THE TONIGHT SHOW" with Jimmy Fallon. You know, you have Bernie Sanders and Elizabeth Warren going to Ohio and New Hampshire. You have Michelle Obama going to Pennsylvania. Particularly in the case of Biden, Warren, and Bernie Sanders, what's so interesting to me is in the outreach to millennial voters they're using people who aren't millennials.

STELTER: You can go ahead and say, in some cases, senior citizens would be the more proper term. We love that, that's great, and it makes -- in some ways it makes -- I think it makes sense. You think about Bernie Sanders' appeal to young people. There was almost a grandfatherly appeal to him, especially among college students on these campuses that were rallying for him.

Watching that Biden sound bite I was struck by how there is no equivalent of Joe Biden for Donald Trump or Sanders or Warren. There aren't the kind of high-profile political surrogates that Clinton's able to tap into that Trump has on his side. The Paul Ryans of the world -- those people are not doing the late-night comedy circuit supporting Donald Trump. It's just one example of sort of the lack of equivalency for the Trump side.

BERMAN: We'll see -- we'll see if the kids like it. STELTER: Yes, we will.

BERMAN: Brian Stelter, great to have you with us. Thanks so much.

KOSIK: That's always good know. Thanks very much.


KOSIK: All right, Wells Fargo CEO John Stumpf grilled again on Capitol Hill yesterday. Lawmakers from both sides citing a "CNNMONEY" report in which former employees say they were reprimanded for fired -- or fired -- for trying to stop the illegal sales tactics that led to the fake account scandal.


REP. KEITH ROTHFUS (R), PENNSYLVANIA: Do you appreciate the kind of courage it takes to be a whistleblower?

JOHN STUMPF, CEO, WELLS FARGO: Well, Iabsolutely -- our people can call an ethics line and they can do it anonymously.

ROTHFUS: You have no idea how many -- you have no idea how many whistleblowers there are?

STUMPF: I don't have --

ROTHFUS: CNN's reporting dozens. Do you think that's accurate?

STUMPF: I don't know and we're going to -- we're going to work on -- every name that we get we're going to work on.


KOSIK: And those accounts were shocking to read. One lawmaker even suggesting this could lead to Wells Fargo being charged under the RICO Act that has been used to prosecute FIFA and members of the mafia.

BERMAN: All right. How did a commuter train end up barreling through a New Jersey train station, killing one, injuring more than 100? New questions this morning. We'll give you an update, next.


[05:43:25] KOSIK: Welcome back. This morning, New Jersey Transit in and out of the Hoboken terminal remains shut down after a stunning crash. Officials say a train entered the terminal traveling far too fast, slamming into a bumper block and flying through the air, killing one person and injuring more than 100.

NTSB investigators are working to answer many questions this morning including, of course, what led to the crash and whether so-called Positive Train Control could have prevented it. That's the safety system that combines GPS, wireless radio, and computers to prevent crashes and derailments.


BELLA DINH-ZARR, VICE CHAIR, NATIONAL TRANSPORTATION SAFETY BOARD: That is absolutely one area that we always look into for every rail accident. As you know, the NTSB has been recommending Positive Train Control -- or PTC -- for 40 years.


KOSIK: OK, so New Jersey Transit does not use PTC -- Positive Train Control. It uses an older, less-sophisticated system called Automatic Train Control. A former train conductor who worked at the Hoboken station tells CNN that system and the actions of the engineer need to be examined.


ALBERT GIL, FORMER NJ TRAIN CONDUCTOR (via telephone): It's on the engineer. The engineers will get signals. If he pulls through the signal there is cab system inside the actual cab of the -- of that Comet V that he's operating that will shut him down. By the time he -- that system took over, it was too late.


KOSIK: For the latest, let's bring in CNNs Jean Casarez in Hoboken.


JEAN CASAREZ, CNN CORRESPONDENT: John and Alison, the National Transportation Safety Board says that their investigators will go into the train when it is deemed safe to do so. That is because they tell us that when the train plowed through the train station, the canopy or the ceiling of the train station actually plummeted down and is on top of the train at this point.

[05:45:15] There has been water leakage. They're concerned because of the age of the train station, itself. There could be asbestos. So they have to deal with that and then they will get construction workers to take that canopy off the train and that is when the investigation will actually begin.

But it started just about 24 hours ago. It was 8:45 a.m., a normal day here in Hoboken. It was train number 1214. It was coming from Spring Valley, New York. And that train, we are told by Gov. Chris Christie of New Jersey, was coming at an accelerated high rate of speed. It ran into the terminal and the supporting structures then broke. As the train went into the terminal it kept going. The canopy -- or the ceiling fell down. The train was stopped right at the wall.

Now, the one female fatality that we know of happened, she was not on the train, she was standing on the platform. She has been identified as 34-year-old Fabiola Bittar de Kroon and she recently worked in Brazil but was back over here in the United States.

Now, we do know that the engineer has been released from the hospital. He is cooperating with authorities. We know it was a high rate of speed that that train was going but the end-all question of why did this happen and how did this happen, that will be left in the days to come. NTSB says they will be here on the scene for probably the next seven to 10 days -- John, Alison.


BERMAN: All right, Jean Casarez, thanks so much.

This morning, a 6-year-old boy, one of three victims shot at a South Carolinaelementary school this week, is fighting for his life. The family of Jacob Hall, a first-grader at the school in Townville, South Carolina, says he is on life support. They are trying to remain optimistic.


JOHNNY BRIDGES, SHOOTING VICTIM JACOB HALL'S UNCLE: He is fighting every day, every moment to survive, and he will survive. He's a strong-willed son.


BERMAN: A detention hearing is scheduled today in family court for the 14-year-old accused of shooting Jacob, along with another student and a teacher. The teen is also suspected of killing his father before the elementary school shooting. His family released a statement saying they are in mourning, both for the loss and the injuries to others in the community.

Let's take a look at what's coming up on "NEW DAY". Alisyn Camerota joins us now. Alisyn, we understand you guys are doing a show today.

ALISYN CAMEROTA, CNN HOST: We are doing a show and we have a lot to tell you about in our show so we're all --

KOSIK: Good morning.

CAMEROTA: -- we're all still getting ready here, as you can see. Chris is getting into make-up. I don't know if I'm --


CAMEROTA: (LAUGHING) And lip gloss. So we have a lot to talk about because we have some new reporting on The Trump Foundation and some allegations of illegality and what's happened there in terms of its charity and what they've given money to.

We'll also be having two witnesses -- people who were on the train of that terrible train accident in Hoboken, so we'll be talking about what they lived through.

And then, of course, we will be talking about sex scandals from the 1990s and why they are relevant today.

BERMAN: It's a good decade for sex scandals, you know, as far as decades go. CAMEROTA: Indeed.

BERMAN: Chris Cuomo looking sharp.

KOSIK: Lip gloss looks good, Chris.

CUOMO: What'd he say? Did he say something about me?

CAMEROTA: You look sharp. You look sharp, he said.

KOSIK: Nice lip gloss, tell him.

BERMAN: Thanks, guys. Looking forward to the show.

KOSIK: It's looking -- do you wear lip gloss? No, you don't.

BERMAN: It's ChapStick.

KOSIK: OK, good for you. All right, it's looking like more losses for stocks today after the market took a beating yesterday. We're going to tell you why investors are focusing on one of Europe's biggest banks when we get an early start on your money. That is next.


[05:52:45] BERMAN: All right. This morning, world leaders gather to bid a final farewell to Shimon Peres. The former Israeli president and prime minister died Wednesday at the age of 93. President Obama delivered a eulogy, saying that he saw the world -- Peres did -- both as it is and as it should be.

CNN's Oren Liebermann live for us from Israel's national cemetery, Mount Herzl, in Jerusalem. A pretty emotional morning, Oren.

OREN LIEBERMANN, CNN CORRESPONDENT: Absolutely. Words like visions and dreams were often used by some of the speakers here to eulogize the ninth president of Israel -- to eulogize Shimon Peres. He very much was a visionary, a dreamer, and he worked up until the day he died to make those dreams happen. And that's what was remembered here, not only from Israeli leaders but also from President Barack Obama who considered him a friend, and President Bill Clinton who considered him a very close friend.

Many other world leaders in attendance, especially including Palestinian President Mahmoud Abbas. There had been some questions about whether he'd come. He did come to say goodbye to Shimon Peres, a man he worked with for so long over the years, especially on the 1993 Oslo Accords.

President Barack Obama remembered a man who had a vision of peace, a dream of hope, and who worked every day to make that happen. A vision he very much shares with Obama. Here is what President Obama had to say.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: He knew better than the cynic that if you look out over the arc of history, human beings should be filled not with fear but with hope.


LIEBERMANN: There were so many here who spoke of what he meant to them and so many of the messages and condolences we've seen about what he meant. His wisdom, his experience, and how much they had learned from him. And yet, his boundless enthusiasm for the future.

One of the special parts of the ceremony here was a song called "Avinu Malkeinu" -- "Our Father, Our King". It was sung by a famous Israeli singer. It is a song that asks God for forgiveness for sins. It asks for compassion and mercy. It was an incredibly emotional moment as it was sung here.

Let me read you a portion of these lyrics. "Hear our prayer. We have sinned before thee. Have compassion upon us and upon our children." This is very much a prayer in the vein of Shimon Peres, a man who believed that if people were destined to get along if they would simply sit down and talk to each other and make it happen. A very emotional moment here.

Obviously, with so many world leaders this was one of the biggest, if not the biggest, security operations in Israeli police history, as well as the Israeli Security Agency's history. Many of those world leaders, after eulogizing and coming to remember Shimon Peres, are on their way back home.

BERMAN: Yes. As many noted, Israel, right now for the first time in its history, existing without Shimon Peres. All right, Oren Liebermann for us in Jerusalem. Thanks so much.

The United States is considering a tougher response against Russia for its role in the bombing of Aleppo and its support for the Assad regime in Syria. An estimated 10,000 Syrian-led ground troops are now positioned east of Aleppo and appear poised for a ground offensive to try to recapture the remaining rebel-held positions.

Secretary of State John Kerry is threatening to cut off diplomatic talks with Moscow,and military and economic options are being discussed now, we are told, at the White House.

KOSIK: All right, let's get an early start on your money. The new worries on Wall Street this morning surround Europe's biggest banks. Germany's Deutsche Bank is the center of those concerns. Its stock plunging right now after reports that some hedge funds are pulling money out of the bank. Dow futures are down again this morning. We are also seeing losses in European stock markets. Shares in Asia slumped as well and oil prices are moving lower.

Speaking of oil, a surprise move by the world's biggest oil producers to cut production made oil prices jump. But experts say drivers likely will not see a significant rise in gas prices, and that's because there's already a glut of oil in the market and countries -- and countries not involved in the deal will keep on pumping. Plus, oil prices remain historically low. Experts also say the deal isn't widely respected, with some feeling certain countries won't hold up their end of the bargain.

If you're keeping score, the national average for a gallon of regular sitting at $2.21 today. It's been holding right around that level for the past couple of months.

U.S. companies hitting a major milestone, the most female CEOs ever, but don't get too excited here. It's still a very small fraction of the chief executive total. A new report shows there are now 27 women leading S&P 500 companies. That's a 22 percent jump from last year but here's the thing, it accounts for just 5.4 percent of America's biggest publicly-traded companies.

There are women at the top of companies in nearly every sector. In fact, this year female CEOs took the helm at several energy and utility companies that are usually dominated by men. So these small little incremental improvements -- and I say very small -- it's really since the same time this survey coming out, another coming out showing women are being promoted less but they are negotiating more for pay raises and promotions. But the problem is they are getting a lot of pushback from the men in the room.

BERMAN: I've got to say it's good news it's the most ever. I was surprised to see that it's still so low. Only five percent of the S&P 500 companies. That's 20 percent. That is not a lot.

KOSIK: And the fight continues.

BERMAN: I mean, it's one out of 20 --

KOSIK: Right.

BERMAN: -- the S&P -- 20 percent. It's just not a lot.

All right, new reporting this morning raising new questions about The Trump Foundation. Millions of dollars -- was it solicited illegally? "NEW DAY" has some answers right now.


HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: The future of our country will be on the ballot.

TRUMP: The Clintons are the sordid past. We will be the very bright and clean future.

CLINTON: He put his personal and business interests ahead of the laws.

KELLYANNE CONWAY, TRUMP CAMPAIGN MANAGER: It's fair game to think about how Hillary Clinton treated those women.

TRUMP: I have a very good history. A lot different than his, that I can tell you. CLINTON: I'm not going to comment on how he runs his campaign. You'll be able to see.

UNIDENTIFIED MALE: I heard a bomb-like explosion.

GOV. CHRIS CHRISTIE (R), NEW JERSEY: The train came in at a high rate of speed.

UNIDENTIFIED MALE: It just didn't stop. We just got thrown around. The lights went out.


UNIDENTIFIED MALE: I hear this really loud bang. It was deafening silence, and then screams and terror.


UNIDENTIFIED MALE: This is NEW DAY with Chris Cuomo and Alisyn Camerota.

CUOMO: Good morning, welcome to your new day. It is Friday, September 30th, 6:00 in the East.

And up first, the race for president has taken a turn. Donald Trump has beauty queen on the brain. The accusation that he insulted and fat-shamed a Miss Universe contestant has gotten under his skin. So he has decided to make the election about what he calls the Clintons sordid past despite warnings from many of his own supporters that the strategy could backfire.

CAMEROTA: Also, we have new investigative reporting to share about Trump's charitable foundation. And Hillary Clinton is still struggling to shore up support from a key voting bloc. So we have a lot to talk about with just 39 days until Election Day. Nine days until the next presidential debate.

We're covering it from every angle beginning with CNN's Chris Frates. He's live from Washington. Good morning, Chris.

CHRIS FRATES, CNN CORRESPONDENT: Hey, good morning, Alisyn. Well, after a week of fallout from Trump's lackluster debate performance on Monday, his advisers are talking about overhauling how the GOP nominee prepares for his next face-off with Hillary Clinton, with some suggesting that Chris Christie take the lead and bring some brutal honesty to that process.

Now, meanwhile, Trump's preparing new lines of attack.