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115th Congress Sworn In; Civil Rights Leaders, NAACP Protest Trump's A.G. Pick Jeff Sessions; Trump Facing Scrutiny over Prominent Attendees at Paid Speech; Megyn Kelly Leaving FOX, Going to NBC; Ryan Has Tough Job Ahead in New Congress. Aired 1:30-2p ET

Aired January 3, 2017 - 13:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(COMMERCIAL BREAK)

[13:30:16] WOLF BLITZER, CNN ANCHOR: Welcome back to an historic day here in the nation's capital. Take a look at the live pictures coming in from Capitol Hill. On the left part of your screen, you see some photo ops. That's the Vice President Joe Biden. He is getting ready to swear in Chuck Schumer who is just re-elected to the United States Senate. The 115th Congress. They're going to be -- he is going to be doing a ceremonial swearing in. All of the new Senators, those who were elect and re-elected, they were officially sworn in on the Senate floor. But these are with their families and they're having an opportunity to get some photos with the outgoing vice president of the United States. You see the new Democratic leader, Chuck Schumer, is about to go through the little swearing -- what they call the mock swearing in ceremony with the vice president. You can see the U.S. House, the 115th session of the U.S. House, that's convening. Dick Durham, the outgoing Democratic minority whip, he is the number-two -- he was the top Democrat after Harry Reid. He obviously is remaining in the United States Senate, but Chuck Schumer will become the Democratic leader. You see the photo ops going on. We're watching all of this closely. An historic day here in Washington D.C.

Meanwhile, there are other developments happening. Civil rights leaders are staging a sit-in over one of President-elect Donald Trump's key nominees. The NAACP is protesting the nomination of Senator Jeff Sessions for attorney general of the United States. In fact, they're staging a sit-in at the Senator's office in Mobile, Alabama, right now.

Joining us by phone is the NAACP President Cornell William Brooks; and the Alabama NAACP President Bernard Simelton.

Cornell, let me start with you.

Tell us the reason for this protest. Why are you doing this?

CORNELL WILLIAM BROOKS, PRESIDENT, NAACP (voice-over): We are here in the office of Senator Jeff Sessions, sitting and occupying his office because we are asking the Senator to withdraw his name for consideration as attorney general or for the President-elect Donald Trump to withdraw the nomination.

The reason being is that in the midst of rampant voter suppression, this nominee has failed to acknowledge the reality of voter suppression while pretending to believe in the myth of voter fraud. We need at the helm of the Department of Justice somebody who acknowledges the reality of voter suppression, someone who is going to stand at the side of people who need the defense of the attorney general, and a Justice Department that works for everyone.

I'm standing here with the president of the Alabama State Congress of the NAACP, members of the branch, who are sitting in literally in the office of a son of -- Jeff Sessions was born in the birthplace of the Voting Rights Act, and he, of all people, of all people, does not acknowledge the reality of voter suppression, did not demonstrate commitments to the Voting Rights Act. And in the wake of the weakening of the Voting Rights Act, he has said it was a good thing. Now, the NAACP, in the course of 10 months, has had 10 victories against voter suppression. We do not need an attorney general who is going to be a member of the do-nothing committee.

Can you imagine him going to Ferguson in the manner of Eric Holder? Can you imagine him dispatching federal officials across the country to insure the integrity of our elections? We're saying either arrest us or withdrew your name? One of the two.

BLITZER: Cornell, do you really think it's realistic that he will withdraw his name or the president-elect will withdraw his name? Here's the question: Why not let him go through the confirmation process before the Senate Judiciary Committee and answer all of these tough questions directly?

BROOKS: Well, here's what -- when you ask me is it realistic, this is what I recall. Or what the history books tell us. It wasn't realistic for a group of civil rights marches to attempt across the bridge three times in 1965. And they passed the Voting Rights Act of 1965. That wasn't particularly realistic. So, we're not daunted. We're not intimidated by the odds.

When you said whether or not it's a good thing for him to have a hearing, sure it's a good thing for democracy for him to answer all the questions. We, in fact, know the answers to the questions right now. We know that he has a horrible record of racially offend language, backed up by bad records of the United States Senate, backed up by an oblivious lack of awareness when it comes to voter suppression.

[13:35:24] And I'm standing here with a state Congress president who is living in a state where the Supreme Court ruled against the citizens of this state. So, we had 500,000, that is a half million votes in peril because of a wrong-hearted, constitutionally wrong- headed voter ideologue.

Note this, this is the same state where they tell the people they need voter I.D.s. Then they shut down the DMV's in the black communities. Then they say we're going to provide you with a mobile I.D. unit, which becomes immobile on Super Tuesday. These folks in the NAACP have had to live with this. And what does Senator Sessions say? Not a mumbling word. He has been mute on it. On the other hand, he -- the myth of voter fraud. We cannot sit this one out. Democracy is a do-it-yourself project.

We are in this. We stood with young people. We stood with older folks this morning. All of whom were calling for Senator Sessions to withdraw his name or the president of the United States to withdraw his name.

BLITZER: The president-elect of the United States.

(CROSSTALK)

BLITZER: I want to correct you on that one.

Cornell, our time is limited. NAACP colleagues are prepared to be arrested in the coming minutes or even hours if you sit there much longer, is that right?

BROOKS: That is absolutely right. That's absolutely right.

And I'll let you talk to President Simelton, who is a veteran, and he, too, is prepared to be arrested.

BLITZER: Quickly, let me ask him, are you prepared to be arrested?

BERNARD SIMELTON, PRESIDENT, ALABAMA NAACP (voice-over): Yes. This is Bernard Simelton. The answer is, yes, we are prepared to be arrested until Senator Sessions meets our demand or the arrest, whichever he chooses.

BLITZER: Have the police warned you yet, Mr. Simelton, about what you are doing?

SIMELTON: No.

BLITZER: Have you been given a warning?

SIMELTON: No, we have not. We're just sitting in Senator Sessions' office with his staff, and we are doing what -- we are conducting business as usual, making phone calls, and continuing the NAACP, and for one has come to us to say anything about arresting us, but we are not leaving.

(CROSSTALK)

BLITZER: You'll stay there as long as you can.

Here's the question, Mr. Simelton: How many people are with you right now?

SIEMELTON: We have two, four, six, seven -- about 15, 20 people. We're in a separate room, but there's still some out in the outer room. We have 15, 20 people with us right now, and we have still other people who are downstairs that are still downstairs waiting to see what happens.

BLITZER: Bernard Simelton is the Alabama State NAACP president. Cornell William Brooks is the national NAACP president and CEO and chairman.

We'll stay in close touch with both of you and see what happens. Thanks so both of you for joining us.

SIMELTON: OK, thank you for calling.

BLITZER: Thank you.

Coming up, we're getting new video that has surfaced. Raising concerns over the president-elect's business ties. We have details. That's coming in.

We'll also continue to watch the ceremonial swearing in ceremonies. There's Michael Biden -- Michael Bennett, I should say, with Joe Biden, I should say. Michael Bennett, of Colorado, with Joe Biden and his family, being sworn in ceremoniously. All the re-elected Senators, the newly elected Senators, they were officially sworn in on the Senate floor in the hour that went by.

We'll be right back.

(COMMERCIAL BREAK)

[11:42:49] BLITZER: Vice President Joe Biden is still the president of the United States Senate. There you see him swearing in Marco Rubio, re-elected Senator from the state of Florida. These are the ceremonial photo ops that are going on. The Senators show up with their families, have a little exchange with the vice president, take some pictures.

And we're going to continue to watch. There you see the Senator from Florida. Let's listen in quickly.

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: Take some pictures. It's good to see you guys. Thank you so much for being here.

UNIDENTIFIED DAUGHTER OF SENATOR MARCO RUBIO: Thank you.

BIDEN: Can I have a picture with just the kids?

SEN. MARCO RUBIO, (R), FLORIDA: Absolutely.

BIDEN: Come on. Get right in the middle. Come on.

BLITZER: The vice president with Senator Rubio's four children. Getting a nice little photo.

This is a moment that the Senators obviously always cherish. The swearing in ceremonies on this day. There's an official swearing in ceremony on the Senate floor, and now these -- what they call these mock swearing in or ceremonial swearing in ceremonies that are going on as well. A lovely moment. indeed. The Democratic vice president swearing in a Republican Senator. At least a little bit of bipartisanship going on in Washington right now.

Meanwhile, the President-elect Donald Trump is facing some serious criticism after audio surfaced from a New Year's Eve speech to paid guests at his Mar-a-Lago hotel in Palm Beach, Florida. In it, Trump mentioned by name some prominent attendees, including a wealthy business partner from Dubai.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT-ELECT OF THE UNITED STATES: Hussein and the whole family from the most beautiful people from Dubai are here tonight.

(END VIDEO CLIP)

BLITZER: "CNN Money" correspondent, Cristina Alesci. is joining us.

Cristina, the comments come amid growing concerns about Trump's involvement in his businesses, even as the inauguration nears. Update our viewers.

[13:44:51] CRISTINA ALESCI, CNN MONEY CORRESPONDENT: That's right, Wolf. This tape is significant. As much as Trump wants to down play it, it shows that he still is thinking about his business and he is talking to his business partners at the same time that he is trying to -- he is supposed to be distancing himself from the business.

And Trump is referencing in that tape, Hussein Sajwani. They've known each other for 10 years. They have developed two golf courses. One Trump branded golf courses, I should say. One is set to open next month, the other sometime in 2018. And, according to financial disclosures, Sajwani's company has paid Trump between $1 million and $5 million last year. So clearly, a strong relationship there.

Here is the important point, Wolf. Even if Trump steps back from his businesses, he can't forget who his business partners are. There are going to be social situations where he is going to run into them and see them and interact with them. Trump is going to know how those decisions may help or hurt his business partners. It's a very complex issue that's definitely going to have to be worked through.

BLITZER: Also, Cristina, he is expected to announce how he will sever ties or at least scale back ties with his multi-billion-dollar Trump organization while handing over the business to his adult children shield the president-elect from further criticism.

ALESCI: The Trump kids play very senior roles within the organization. In fact, you go to the website, Wolf, of the Trump Organization, and you'll see the kids, Ivanka, Don, Eric, are the only executives with bio pages. They're labeled as the next generation. In fact, Trump has said that his two oldest sons are going to take over and run the business.

And for ethics experts, they say, OK, does this present an opportunity for foreign leaders or other people to curry favor with the president by doing more deals with the Trump organization. In fact, Sajwani didn't rule out more deals, and he is hopeful they can get more deals done because of their relationship with the Trump children. It's unclear that the way that Trump is going to structure his

conflicts and resolving them is really going to shield him and his children from further criticism at this point.

BLITZER: Cristina Alesci, reporting for us. Cristina, thanks very much.

This just coming in to CNN, the FOX News anchor, Megyn Kelly, is about to start a new chapter in her career. She's leaving FOX News for a new job at NBC News.

Our senior media correspondent, Brian Stelter, is joining us now.

Brian, tell our viewers what you have learned.

BRIAN STELTER, CNN SENIOR MEDIA CORRESPODNENT & CNN HOST, RELIABLE SOURCES: Megyn Kelly, one of the biggest stars of the 2016 election, known for her battle with Donald Trump. Really Trump's war against Megyn Kelly. Is he is leaving FOX, heading to NBC News in one of the most interesting and, well, highest priced television deals of the decade.

She faced a very big decision this year, Wolf. She was talking about this with her family over the holidays. Now she's coming back on the third day of the new year and announcing she's leaving FOX News later this year, heading over to NBC.

The reason this is so interesting is her contract was due in July. This is comparable to Katie Couric going over to CBS and leaving the "Today" show. Then Couric had a daytime talk show. And that's one of the things Kelly will be doing now at NBC. She'll also have a prime- time Sunday show. And she'll be part of NBC's larger special report and news conference.

Now, she also held talks with CNN and ABC, and, of course, FOX News, the Murdochs tried very hard to keep Kelly. Wolf, as you know, people rarely leave FOX News. FOX News stars very rarely leave the channel. But Megyn Kelly decided her future is with NBC, and she'll be joining the network later this year.

[13:49:10] BLITZER: Very interesting.

Thanks very much.

Brian Stelter, reporting for us on that media news.

We're standing by. The Speaker of the House Paul Ryan, he is getting to -- getting ready to address the House of Representatives. The 115th session has just convened. Will he respond to the tough statement that Senator Schumer put on the Senate floor?

Much more when we come back.

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BLITZER: The House of Representatives has acted. They have officially re-elected Paul Ryan as speaker of the House, the 115th House. No surprise there.

Let's bring back our panel, David Nakamura, of the "Washington Post," is with us. CNN political director, David Chalian; CNN chief political analyst, Gloria Borger; and CNN chief political correspondent, Dana Bash.

This is no surprise. Paul Ryan will be the speaker. He has a tough act, even though the Republicans are the majority in the House and the Senate and will take over the White House on January 20th. There will be a lot of issues out there that will require finesse and skill.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: With his own troops and with Donald Trump, with whom he's not had a historically close relationship. This is great for Paul Ryan. He's had a lot of trouble with some of his troops. Particularly on the "hell no caucus," as I call them, and now that he's gotten the seal of approval for Donald Trump. It seems to me, at least for now, that he's bringing the troops along in this initial vote.

But Paul Ryan is going to be a very interesting person for all of us to watch here, because on issues like Russia, for example, where he has differed from Donald Trump, we're going to have to see how he navigates this. He's so happy because he can finally get a conservative agenda through the House of Representatives, something he's really been working on. On the other hand, he has a president that he doesn't get along with or agree with very often.

BLITZER: Although their relationship, Dana, has improved. It was pretty tense --

DANA BASH, CNN CHIEF POLITICAL CORRESPONDENT: It couldn't get much worse.

(LAUGHTER)

BLITZER: -- during the primaries and, a as we all know, during the general campaign as well. But now Trump says nice things about him.

BASH: They talk every day, but certainly, to your point, there are going to be issues that come up, big ones like how to deal with Russia and small ones like things he tweets about. But right now, Paul Ryan is the happiest person in Washington D.C. He is a policy wonk. He is a self-described policy nerd. And has been toiling away since he was young, for years, trying to successfully craft not just alternatives to Obamacare but trying to find ways to deal with entitlements Medicare and social security in particular. They're actually very specific programs, some of which Donald Trump has said he doesn't necessarily like, but Donald Trump is open to it.

So, Paul Ryan and his fellow Republican leaders feel as long as they can keep the legislative train on track, they are in charge of pushing through the Republican agenda and they're going to have a pretty big bully pulpit to help.

[13:56:02] DAVID CHALIAN, CNN POLITICAL DIRECTOR: And remember -- I mean, Donald Trump is not hiding how he wants to deal with Paul Ryan. In a post-election event that he went to Wisconsin, and Paul Ryan was on stage, he clearly praised him and said, unless you go against me, and then I'll say something.

(LAUGHTER)

He's not hiding. As soon as Paul Ryan is fighting Donald Trump on something, Donald Trump is going to go to town on Paul Ryan. So, it's going to be totally transactional.

BASH: Totally.

CHALIAN: Exactly.

DAVID NAKAMURA, REPORTER, WASHINGTON POST: It does make you wonder, are the priorities are going to be outside of the box and if Donald Trump cracks down on illegal immigrants, and rolling back President Obama's agenda. He was big on the trade deal that the president put forward. So there actually are things he'd like to see get done. But if he decides to pick a fight over those, they could derail all the priorities he has.

BLITZER: Mitch McConnell the Republican leader in the Senate, this is an opportunity, Gloria, that that they will sign legislation to pass into law so much that has happened over the years.

BORGER: I remember when Mitch McConnell would not mention Donald Trump's name. Do you remember this?

(CROSSTALK)

BASH: A couple of weeks ago?

(LAUGHTER)

BORGER: During the campaign. Right. So, these are uneasy relationships both in the House and Senate but forced into this marriage in their own self-interest, because there are things they want to get done. It was a marriage arranged by the American public.

(LAUGHTER)

And they're going to have to deal with it.

But having said that, as Dana says, there are things that Paul Ryan has been really wanting to do. They're going to want to repeal and replace Obamacare. It's tricky. It's going to be difficult, but they're going to be on board with that. They're going to be on board with Donald Trump on Supreme Court nominations. That's going to be very, very important to them.

BLITZER: That still will require a 60.

BORGER: Right. Right.

BLITZER: The Supreme Court. Not the cabinet, which requires 51, but the Supreme Court will require 60 votes. BORGER: You have John McCain and Lindsey Graham screaming bloody

murder about Rex Tillerson, the nominee for secretary of state. We'll see how that progress. These are going to be issue by issue by issue. And sometimes the Republicans will be with Donald Trump and sometimes they won't. The leaders are going to be interesting to watch.

BLITZER: Dana, there will be some moderate Democrats, conservative Democrats that were up for re-election in two years.

BASH: There are 10 Senate Democrats up in states where Donald Trump won. That's kind of remarkable when you think about it. That is why when you were talking earlier about Chuck Schumer the new Democratic leader between challenging Donald Trump and holding him accountable and acquiescing and having some compromise. It's not just about Donald Trump it's about his own self-preservation, Chuck Schumer, because if he loses, let's just say, half of those 10 then they are in a really, really bad place. Because right now, the Democrats, sure, are in the minority in the Senate. But in the Senate, when you're the minority, and they just a few-seat vote margin, they have a lot of power. They can't make the agenda, but they can make a lot of trouble for Donald Trump.

BLITZER: They certainly can.

It's a historic day here in the nation's capitol, in Washington, D.C.

I want everyone to stand by right now.

ANNOUNCER: This is CNN breaking news.

[14:00:07] BLITZER: The new Congress convenes and Republicans are in charge. Take a look. Live pictures from the House of Representatives.