AP-APTN-2330: India Plane Crash 8 Saturday, 22 May 2010 STORY:India Plane Crash 8- REPLAY Plane overshoots runway, presser, survivor, aviation min LENGTH: 05:32 FIRST RUN: 1630 RESTRICTIONS: See Script TYPE: English/Hindi/Nat/Pt Mute SOURCE: VARIOUS STORY NUMBER: 801270 DATELINE: Various - 22 May 2010 LENGTH: 05:32 AP TELEVISION - AP CLIENTS ONLY AP PHOTOS - NO ACCESS INDIA / NO ACCESS CANADA/ FOR BROADCAST USE ONLY - STRICTLY NO ACCESS ONLINE OR MOBILE TV TODAY - NO ACCESS INDIA/US TV 9 - NO ACCESS INDIA ++QUALITY AS INCOMING++ SHOTLIST: (FIRST RUN 0630 ASIA PRIME NEWS - 22 MAY 2010) TV TODAY - NO ACCESS INDIA/US Mangalore 1. Various of firefighters dousing wreckage of plane 2. Burning wreckage, tilt down to firefighters 3. Close of burning wreckage 4. Various of fire truck arriving 5. Various of burning wreckage (FIRST RUN 0830 EUROPE PRIME NEWS - 22 MAY 2010) TV 9 - NO ACCESS INDIA ++MUTE - TV9 bug in centre of picture++ Mangalore 6. Wide of firefighters dousing wreckage of plane 7. Close of smouldering wreckage 8. Tail of plane being doused 9. Firefighters dousing wreckage 10. Firefighters next to wreckage 11. Smoke rising from wreckage 12. Panning shot of firefighters dousing wreckage 13. Various of child, covered in foam, being carried from wreckage (FIRST RUN 0830 EUROPE PRIME NEWS - 22 MAY 2010) AP PHOTOS - NO ACCESS INDIA / NO ACCESS CANADA / FOR BROADCAST USE ONLY - STRICTLY NO ACCESS ONLINE OR MOBILE Mangalore 14. STILL showing child covered in foam being carried from wreckage by rescue worker 15. STILL showing wide of wreckage and rescue workers 16. STILL showing wide of smouldering wreckage, rescue workers and onlookers (FIRST RUN 0930 AMERICAS PRIME NEWS - 22 MAY 2010) TV TODAY - NO ACCESS INDIA/US Mangalore 17. Various of injured woman being wheeled through hospital 18. SOUNDBITE: (Hindi) Ummer Farook Mohammed, plane crash survivor: ++CLIENT NOTE - THIS SPELLING OF THE SURVIVOR IS THE ONE GIVEN BY AUTHORITIES - IT DIFFERS FROM THE SPELLING USED IN EARLIER VERSIONS++ "When the plane landed, the tyre burst at the same time. We did not even get a second. The tyre burst as soon as the plane landed and the plane went toward the forest. Within a few seconds there was a blast and the plane was filled with smoke and there was total chaos. A part of the plane broke off and I could see trees through the smoke, I jumped out from there. There was another passenger before me who was trying to jump, so I pushed him out. He got entangled in a cable. In the process of helping him out I got burnt in the face and hands." (FIRST RUN 1430 ME EUROPE PRIME NEWS - 22 MAY 2010) TV 9 - NO ACCESS INDIA Mangalore 19. Various of Indian External Affairs Minister S.M. Krishna (wearing mask) visiting the hospital (FIRST RUN 1630 EUROPE PRIME NEWS) AP TELEVISION - AP CLIENTS ONLY New Delhi ++NIGHT SHOTS++ 20. Indian Civil Aviation Minister Praful Patel coming out of house of Prime Minister Manmohan Singh 21. Patel sitting down in front of reporters 22. Cutaway of media 23. SOUNDBITE: (English) Praful Patel, Indian Civil Aviation Minister: "So the plane was in contact with the ATC (air traffic control) and had not reported any kind of shortcoming, technical or otherwise, and as I said earlier it appeared to be a normal approach. What now is the reason behind the over shooting of the aircraft will only be known when the high level inquiry ordered by the DGCA (Director General of Civil Aviation) is completed." 24. Cameras and reporters 25. Patel getting up to leave (FIRST RUN 1330 EUROPE PRIME NEWS - 22 MAY 2010) AP TELEVISION - AP CLIENTS ONLY New Delhi 26. Various of news conference 27. SOUNDBITE: (English) M. Madhavan Nambiar, Secretary, Ministry of Civil Aviation: "This runway has been in operation fully since 2006, it has not opened now, and I would like to emphasise that from 2006 there have been over 32 thousand landings in this Mangalore runway, so now I don't think it is fair to make these conjectures unless we have other evidence." 28. Mid of reporters 29. Officials and media leaving news conference (FIRST RUN 0930 AMERICAS PRIME NEWS - 22 MAY 2010) TV TODAY - NO ACCESS INDIA/US Mangalore 30. Various of ongoing rescue operation at the crash site 31. Wreckage being doused 32. Various of debris on ground, onlookers gathered at scene 33. Wide of crash scene STORYLINE An Air India Express plane trying to land at a tricky hilltop airport in southern India overshot the runway early on Saturday, crashed over a cliff and burst into flames, killing nearly 160 people, officials said. There were eight survivors. Scores of villagers scrambled over the hilly terrain to reach the wreckage, and began aiding in the rescue operation. Dense black smoke billowed from the wreckage of the flaming Boeing 737-800 aircraft in a hilly area with thick grass and trees just outside Mangalore's Bajpe airport, which lies around 12 miles (19 kilometres) from Mangalore itself. Firefighters sprayed water and foam on the plane - which had travelled from Dubai - as others struggled to find survivors. An Associated Press photo showed two rescuers running up a hill carrying a young child covered in foam to waiting medics. The child's fate was not immediately known. The plane was carrying 160 passengers - all Indian - and six crew members, according to Air India official Anup Srivastava. The pilot and co-pilot were among the dead. Workers pulled scores of burned bodies from the blackened tangle of aircraft cables, twisted metal, charred trees and mud at the crash site. Many of the dead were strapped into their seats, their bodies burned beyond recognition. Relatives of the victims, who had come to the airport to meet them, stood near the wreckage weeping. One survivor, who suffered burns on his face and hands, said it felt like a tyre burst after the plane landed. "There was a blast and plane was filled with smoke and there was total chaos," he told local media. By Saturday afternoon, rescuers had pulled 146 bodies from the wreckage. Eight other passengers had been rescued and were being treated in local hospitals, the airline said. Indian External Affairs Minister S. M. Krishna visited the injured in the hospital at Mangalore later on Saturday. In New Delhi, Civil Aviation Minister Praful Patel addressed reporters following a meeting with Prime Minister Manmohan Singh. He said the plane had been in contact with air traffic control prior to the crash and had not reported any problems. He added that the reason behind the crash would only be known after the high level inquiry which has been ordered by the Director General of Civil Aviation is completed. Earlier in New Delhi, M. Madhavan Nambiar, Secretary of India's Ministry of Aviation, M. Madhavan Nambiar, confirmed that the crash had happened around 0600 local time (0030 GMT) and that the plane had been just two years old and had an experienced pilot and co-pilot. He refused to speculate on whether the situation of the runway itself had been a contributory factor, saying that there had been more than 32-thousand safe landings on it since it came into operation in 2006. Indian Home Minister Palaniappan Chidambaram previously said the plane's pilot was a British citizen with more than 10-thousand hours of flying experience, including 26 landings at Mangalore. The Indian co-pilot had more than 3,750 hours of experience and 66 landings at Mangalore, he said. Civil Aviation Minister Praful Patel said that conversations with the cockpit and other records showed the flight was operating normally before touchdown. Air India runs cheap flights under the Air India Express banner to Dubai and other Middle Eastern destinations where millions of Indian expatriate workers are employed. The crash was the deadliest in India since the November 1996 midair collision between a Saudi airliner and a Kazakh cargo plane near New Delhi that killed 349 people. Prime Minister Manmohan Singh expressed condolences and promised compensation for the families of the victims. Boeing said it was sending a team to aid in the investigation. Meanwhile, at Dubai International Airport, a special room was set up to assist relatives and friends of the passengers at Terminal 2, a hub for many budget and small airlines. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1936EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: India Hospital Saturday, 22 May 2010 STORY:India Hospital- REPLAY Bodies brought to Vanlock Hospital LENGTH: 01:47 FIRST RUN: 1830 RESTRICTIONS: AP Clients Only TYPE: Hindi/Pt Mute SOURCE: AP TELEVISION STORY NUMBER: 801290 DATELINE: Mangalore - 22 May 2010 LENGTH: 01:47 AP TELEVISION - AP CLIENTS ONLY SHOTLIST ++NIGHT SHOTS++ 1. Various of ambulance leaving with bodies of crash victims 2. Wide shot of the hospital mortuary courtyard 3. Wide shot of volunteers going over list of crash victims and helping out relatives 4. Various of volunteers poring over the lists 5. Entrance to mortuary with people queueing outside 6. Various of man using microphone to make announcement 7. Two men who are trying to identify the remains of their relatives 8. Relative of victim showing mobile phone with pictures of crash site 9. Close-up of mobile phone screen showing shot of crash site 10. SOUNDBITE (Hindi) Mohammad Tazem, who identified five of his relatives on the flight and was still looking for his uncle's body: "We've been trying since the morning to identify the bodies, but it's very difficult as they're completely burnt. Still we have identified five bodies, similarly others have also identified the bodies, but still we have to identify one (more) body." 11. Various of workers wrapping body in cloth 12. Various of body being carried out and put into ambulance 13. Ambulance driving away through crowd STORYLINE Relatives flooded into a hospital mortuary in Mangalore on Saturday to try to identify the bodies of the victims from the crash of an Air India Express plane that was carrying 166 people. Eight people escaped after the plane overshot a hilltop runway in southern India and plunged over a cliff, officials said. At least some of the survivors managed to jump from the wreckage just before it burst into flames. By Saturday night, rescuers had pulled 158 bodies from the wreckage. The eight survivors were being treated in hospitals, the airline said. Bereaved relatives waited their turn at the mortuary in Mangalore to identify the remains of their loved ones while volunteers pored over passenger lists. Bodies that were positively identified were wrapped up and taken away in ambulances. One man said he had identified five relatives on the flight from Dubai to the port city of Mangalore, and was still trying to find his uncle's remains. Firefighters struggled to reach the twisted, smoking wreckage of the Boeing 737-800, which was scattered along the hillside of thick grass and trees just outside Mangalore's Bajpe airport. But after the first few minutes, there were no more survivors to be found. Instead, scores of burned bodies were pulled from the blackened tangle of aircraft cables, twisted metal, charred trees and mud at the crash site. Many of the dead were strapped into their seats, their bodies burned beyond recognition. Air India, the country's national carrier, runs inexpensive flights under the Air India Express banner to Dubai and other Middle Eastern destinations where millions of Indians are employed. The plane was carrying 160 passengers - all Indian - and six crew members, an Air India official said. Four infants and 19 other children were among the passengers. The British pilot, who was of Serbian origin, and an Indian co-pilot were among the dead, officials said. The crash was the deadliest in India since the November 1996 midair collision between a Saudi airliner and a Kazakh cargo plane near New Delhi that killed 349 people. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1936EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: Pakistan Arrests Saturday, 22 May 2010 STORY:Pakistan Arrests- REPLAY Reax as men held for allegedly helping Times Squ suspect LENGTH: 01:49 FIRST RUN: 1130 RESTRICTIONS: AP Clients Only TYPE: English/Nat SOURCE: AP TELEVISION STORY NUMBER: 646344 DATELINE: Islamabad - 22 May 2010 LENGTH: 01:49 ++CLIENTS NOTE: STORYLINE UPDATED 1216 GMT++ AP TELEVISION - AP CLIENTS ONLY SHOTLIST 1. Pan from street to Hanif Rajput Catering Services office in Islamabad 2. Sign reading: "Hanif Rajput Catering Services" 3. Exterior of Hanif Rajput Catering Services office 4. Rana Ashraf Khan, father of Salman Ashraf Khan, chief executive of Hanif Rajput Catering Services, sitting in office with relatives 5. SOUNDBITE (English) Rana Ashraf Khan, father of Salman Ashraf Khan "He (Salman Ashraf Khan) had no contacts to my knowledge, because he was always more than preoccupied with his business for the last five to six years. If by chance, because his business involvement and nature of our business, because we are service providers and we keep on providing services to all categories of people, all categories of companies everywhere, so there might have been a chance he might have come across this guy (Times Square suspect), which I am not sure, but having any connection with him - totally out of question." 6. Cutaway of logo 7. SOUNDBITE (English) Rana Ashraf Khan, father of Salman Ashraf Khan "Since yesterday, that he has been detained and even the charges have been mentioned, if not levelled officially, they have been mentioned in media and in press and in electronic media. Why they don't bring him in front of the court? Why don't they produce him? There has been no word from them. It is the 13th day, the family is going through its most terrible time." 8. Rana Ashraf talking on phone 9. Tilt down exterior Hanif Rajput Catering Services office STORYLINE A catering company executive who was among six men detained by Pakistan for allegedly helping the Times Square bombing suspect had differences with American policy in the region but no hatred toward the country, his father said on Saturday. Rana Ashraf Khan's son, Salman, was one of six suspects arrested by Pakistani authorities following the failed New York attack, although the timing of their detention remains unclear. Five of the men were picked up in the capital, Islamabad, a senior Pakistani intelligence official told The Associated Press. He spoke on condition of anonymity because of the sensitive nature of the investigation. The official claimed that Salman Ashraf Khan - who co-owned the upscale Hanif Rajput Catering Service - had been recruited because two other suspects "wanted him to help bomb a big gathering of foreigners" whose event his company was catering for. Hanif Rajput Catering Service in Islamabad is popular among foreign embassies and many of Pakistan's wealthiest companies and individuals. In a statement on its website, the US embassy warned that the catering company was suspected of ties to insurgent groups and said American diplomats had been instructed to stop using it. But Khan's father on Saturday said he was baffled by the accusations, adding his son was a successful businessman who lived happily as a student in the US for four years. The younger Khan studied hotel management in Florida and computer science in Houston, returning to Pakistan in 2001 to take over the family business. His family reported him missing after he failed to turn up at his office on 10 May. A neighbour's guard saw a man drop off Khan's car at the family home about an hour after he left for work, then speed off in a taxi with several others, the father said. Like Faisal Shahzad, the Pakistani-American accused in the failed New York bombing, the six suspects held in Pakistan were all members of the country's so-called urban elite, some of them educated in the United States. But Khan's father said it was unlikely that his son had anything to do with Shahzad as he had been ""always more than preoccupied with his business for the last five to six years". "There might have been a chance he might have come across this guy...but having any connection with him - totally out of question," he added. He continued accusing the authorities of denying his son his legal rights. "Why they don't bring him in front of the court? Why don't they produce him? There has been no word from them. It is the 13th day, the family is going through its most terrible time," he said. The detainees are believed to be in the custody of Pakistani intelligence, which has been known to hold people for months - if not years - without trial. It cooperates closely with the CIA, which is often given access to detainees. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1936EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: China Clinton 2 Saturday, 22 May 2010 STORY:China Clinton 2- REPLAY Secretary of state on Sino-US relations prior to Beijing talks LENGTH: 01:16 FIRST RUN: 1430 RESTRICTIONS: AP Clients Only TYPE: English/Nat SOURCE: AP TELEVISION STORY NUMBER: 646352 DATELINE: Shanghai - 22 May 2010 LENGTH: 01:16 AP TELEVISION - AP CLIENTS ONLY SHOTLIST 1. Wide of Jose Villarreal, US Commissioner General of the US Exhibition Section at the Shanghai World Expo, speaking at the podium at the USA Pavilion dinner 2. Mid of US Secretary of State Hillary Rodham Clinton walking onto the stage and greeting Villarreal, officials standing up to applaud Clinton 3. Wide of Clinton at the podium, attendees clapping 4. SOUNDBITE (English) Hillary Rodham Clinton, US Secretary of State: "The shape of that future depends, to a significant degree, on the evolving relationship between the United States and China. If our relations are defined by win-win solutions rather than zero-sum rivalries, we will thrive and prosper together. Now we may not always agree on every issue, but we should seek and seize opportunities such as this Expo, to build greater understanding between our peoples." 5. Wide of Clinton speaking on stage 6. Mid of attendees clapping 7. Mid of Clinton walking over to sculptures of pandas to pose for photographs with US Pavilion officials STORYLINE The United States and China should seek greater cooperation, the US Secretary of State told US and Chinese officials during a tour of the World Expo in Shanghai on Saturday. Speaking at a dinner in the US Pavilion, Hillary Rodham Clinton extolled the virtues of cooperation between the nations in a major charm offensive ahead of talks in Beijing on Sunday. "If our relations are defined by win-win solutions rather than zero-sum rivalries, we will thrive and prosper together," Clinton told the fifty or so US and Chinese officials and delegates. Clinton's tour of the US and Chinese Pavilions, seeking to strengthen US-Chinese ties, marks a major US push to win China's support for penalising its ally North Korea over the sinking of a South Korean warship. In Tokyo on Friday, Clinton said the evidence was "overwhelming" that North Korea was behind the sinking of the South Korean ship Cheonan in March, which killed 46 sailors, and demanded that the communist country must face international consequences. North Korea denies it was responsible and has threatened to retaliate against any attempt to punish it with "all-out war." On Sunday, Clinton will lead a delegation with US Treasury Secretary Timothy Geithner, for high-level US-Chinese talks in Beijing expected to be dominated by the South Korean ship incident. The second round of the so-called "Strategic and Economic Dialogue" was supposed to be the main thrust of Clinton's trip, but with the release of a report on Thursday blaming Pyongyang for sinking the South Korean vessel, Clinton's main task now is persuading China to support United Nations Security Council action against Pyongyang. China, North Korea's primary ally and financial supporter, has been neutral on the conclusions of the report that found Pyongyang responsible for firing a torpedo that sank the Cheonan. On Saturday, the UN Command's Military Armistice Commission, which oversees the 1953 Korean War truce agreement, said it would review the findings of the report and determine the scope of North Korea's armistice violation. Chinese officials have appealed for calm, calling the sinking "unfortunate," but they have stopped short of backing Seoul in the growing dispute, instead reiterating long-standing views on the need to maintain peace on the peninsula. As a veto-wielding permanent member of the Security Council, China's backing for any UN Security Council move will be key. US officials travelling with Clinton say she will push Chinese leaders to "acknowledge the reality" of what happened and support measures to convince the North to change its behaviour. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1936EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: Colombia Election Campaign Saturday, 22 May 2010 STORY:Colombia Election Campaign- REPLAY Campaigning draws to an end ahead of election LENGTH: 02:04 FIRST RUN: 2030 RESTRICTIONS: AP Clients Only TYPE: Spanish/Nat SOURCE: AP TELEVISION STORY NUMBER: 801281 DATELINE: Bogota - 21 May 2010 LENGTH: 02:04 AP TELEVISION - AP CLIENTS ONLY SHOTLIST: ++NIGHT SHOTS++ 1. Wide of members of public at electoral meeting, zoom in to banner reading: (Spanish) "Together with Juan Manuel for president" 2. Presidential candidate Juan Manuel Santos arriving and walking onto the stage 3. Santos and his vice-presidential candidate Angelino Garzon raising hands into air 4. Wide of stage, zoom in 5. SOUNDBITE: (Spanish) Juan Manuel Santos, Presidential Candidate: "We are going to vote for continuity, to move forward, to strengthen what president Uribe left us, so all Colombians, we get a job, that's what we need, more and more jobs." 6. Wide of theatre with crowd cheering for Santos 7. People listening to Santos' speech 8. Close-up of banner reading: (Spanish) "Santos, President" 9. SOUNDBITE: (Spanish) Juan Manuel Santos, Presidential Candidate: "I don't see enemies in my political adversaries, nor in foreign governments. Ideological differences cannot divide us. Our enemies and common enemies, and you know them well, my enemy is unemployment, my enemy is poverty, my enemy is corruption." 10. Wide of Santos on stage with supporters 11. Various of pyrotechnics going off on stage 12. Santos and Garzon onstage with their wives, waving to audience STORYLINE Colombian presidential candidate Juan Manuel Santos closed his campaign on Friday night with a crowded gathering in a Bogota theatre where he pledged to continue with president Alvaro Uribe's work. Nine days ahead of the May 30th presidential elections, Colombia's former Defence Minister held the last act of his presidential campaign in El Campin theatre in front of five-thousand people. Well known Colombian musicians entertained the crowd who waved banners in support of the Partido de la U candidate. According to the most recent surveys, 58-year-old Santos regained the lead in the polls for the first round of voting with 35 percent of the vote intention. But his main contender, former Bogota mayor Antanas Mockus, from the Green Party, follows him extremely close with 34 percent. After Mockus' popularity skyrocketed over a month ago, Santos, who as Uribe's political heir had always been the favourite to win the election, had to change his strategy. "We are going to vote for continuity, to move forward, to strengthen what president Uribe left us, so all Colombians, we get a job, that's what we need, more and more jobs," he said. Santos pledged to continue Uribe's path and to work towards strengthening the economy, seen as one of Uribe's great achievements, but softened his tone when he referred to his political opponents, inside and outside the country. "I don't see enemies in my political adversaries, nor in foreign government. Ideological differences cannot divide us. Our enemies and common enemies, and you know them well, my enemy is unemployment, my enemy is poverty, my enemy is corruption," he said. The former Defence Minister is well known for his non-diplomatic manners and his promptness to sharply react to any criticism. None of them, Santos or Mockus who is closing his campaign on Sunday, seem to have a chance to win in the first round where 50 percent of the votes are necessary. Polls indicate that they will have to go to the run-off round on June 20th. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1936EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: ++Argentina Parade Saturday, 22 May 2010 STORY:++Argentina Parade- NEW First military parade in 10 yrs ahead of independence bi-centennial LENGTH: 02:30 FIRST RUN: 2330 RESTRICTIONS: AP Clients Only TYPE: Natsound SOURCE: AP TELEVISION/CANAL 7 STORY NUMBER: 801283 DATELINE: Buenos Aires - 22 May 2010 LENGTH: 02:30 AP TELEVISION - AP CLIENTS ONLY CANAL 7 - AP CLIENTS ONLY SHOTLIST: AP TELEVISION 1. Various of downtown Buenos Aires before the military parade 2. Various of crowd 3. Wide of the military parade, spectators 4. Navy officers marching on the 9 de Julio (9 of July) avenue 5. Child on father's shoulders taking photo of the parade 6. Female navy officers marching in the parade 7. Wide of parade CANAL 7 8. Wide top shot of the parade 9. Top shot of marchers 10. Ground shot of parade, military passing by main stage 11. Close up of children watching the parade 12. Top shot of the parade 13. Various of military marching and singing 14. More of troops marching AP TELEVISION 15. Various of female vendor selling pop-corn, hot dogs, roasted peanuts, and world cup replicas to the crowd STORYLINE Argentina commemorated the 200th anniversary of its independence on Saturday, with a military parade in the centre of Buenos Aires. Hundreds of thousands of people gathered at the imposing 9 de Julio (9 of July) Avenue to watch the parade, despite the threat of rain due to grey clouds over the capital. Five thousand soldiers and members of the state's security forces took part in the parade. Only once before in almost 30 years, during Carlos Menem's presidency, has the army paraded in the streets of the capital. Numerous activities to celebrate the bicentenary of Argentina's independence have been scheduled in the upcoming days. The 9 of July Avenue, stage to most of them, has been closed to traffic since Friday night and it will be closed until Tuesday. Stalls representing the Argentinean provinces have been set along the avenue to display to visitors the history, charms and peculiarities of each one. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1937EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: Russia Protest Saturday, 22 May 2010 STORY:Russia Protest- REPLAY Blue bucket protesters rally against officials breaking rules LENGTH: 01:38 FIRST RUN: 1330 RESTRICTIONS: AP Clients Only TYPE: Russian/Nat SOURCE: AP TELEVISION STORY NUMBER: 646346 DATELINE: Moscow - 22 May 2010/ File LENGTH: 01:38 AP TELEVISION - AP CLIENTS ONLY SHOTLIST 22 May 2010 1. Pan and zoom out of two men with blue buckets on their heads arriving at protest, greeted by third protester 2. Woman attending protest rally with baby carriage with blue bucket attached to hood 3. Close-up of plastic blue cup on baby carriage 4. Wide of rally 5. Man on steps addressing protesters 6. Wide pan of rally participants 7. Man wearing bike helmet with blue bucket attached to it 8.SOUNDBITE (Russian) Alexey Dozorov, Head of Car Owners Rights Protection Organisation: "We will continue our actions, we want people to see that there are people who are fighting against things they don't like and want something to change." 9. Two police officers watch over crowd 10. Bearded man with blue plastic cup on his head 11. Wide of rally 12. Mid shot man with a sign on his back reading (in Russian): "I'm the flashing light, I can do anything I want" 13. Woman holding dog with blue plastic cup strapped to its back 14. Woman with blue bucket on her head FILE June 2009 15. Wide of traffic in Moscow street, car with blue light riding in the middle of the road violating traffic rules FILE August 2007 16. Mid shot road policeman in the street 17. Wide of traffic on street, vehicle with lights and siren driving away in far lane STORYLINE About 200 people protested in Moscow on Saturday against special flashing blue lights used by officials to get around traffic rules. The protesters wore blue buckets and cups on their heads in imitation of the blue lights, called migalki, that the drivers for VIPs attach to their cars allowing them to ignore traffic rules so they can get to meetings on time. Participants at previous protests have been detained by police but Saturday's event was peaceful. For the protesters, the lights have come to symbolise Russia's elite because they allow the officials to escape the chronic traffic congestion on Moscow's road network. Regular car owners have previously held flashmob protests against the use of the lights and have put blue buckets on their cars to imitate them. Muscovites are all too accustomed to seeing luxury sedans driving in the opposite lane to escape gridlock. The cars often have flashing blue lights, issued mainly to government officials. In one incident in March, a black Mercedes with a flashing blue light on the roof and a VIP inside collided head-on with a little hatchback, killing the two women in the car. The VIP - a vice president of Lukoil, Russia's largest private oil company - left in another car, and police blamed the hatchback for swerving into oncoming traffic. Some of the strongest support for the dead women came from civic organisations formed to defend the rights of drivers. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1937EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: Cuba Animals Saturday, 22 May 2010 STORY:Cuba Animals- REPLAY Animal tricks attract tourists LENGTH: 02:31 FIRST RUN: 2030 RESTRICTIONS: AP Clients Only TYPE: Spanish/Natsound SOURCE: AP TELEVISION STORY NUMBER: 801282 DATELINE: Pinar del Rio - 22 May 2010 LENGTH: 02:31 AP TELEVISION - AP CLIENTS ONLY SHOTLIST 1. Zoom in Vinales Valley 2. Exterior of house and old truck on street 3. Tomas the water buffalo being bathed UPSOUND (Spanish) Javier Pimentel, Owner and Trainer: "Turn around! More. More. Face me. Ok, there." 4. Pimental washes Tomas' head 5. Pan left Pimentel riding by on Tomas on their way to work 6. Zoom in Tomas and Pimentel pass by Cuban flag on house in background 7. Tomas walking and following commands while carrying female tourist UPSOUND (Spanish) Javier Pimentel, Owner and Trainer: "That's it. A little more forward. Slow down. Right there. Stop." 8. Pimental giving Tomas commands on where to stand UPSOUND (Spanish) Javier Pimentel, Owner and Trainer: "Two steps forward. Count them. One and then the other, two. Perfect. 9. Top shot of riding Tomas the water buffalo from rider's perspective UPSOUND (Spanish) Javier Pimentel, Owner and Trainer: "Turn right here, like that. Come back a little." 10. SOUNDBITE (Spanish) Javier Pimentel, Owner and Trainer: "My family, my nephews, everybody has a relationship with him. For example, family photos at home aren't photos if they don't include Tomas." 11. Close-up of Tomas 12. Alejandro Perez riding Jardinero the ox 13. Perez demonstrating how he gets Jardinero to lay down UPSOUND (Spanish) Alejandro Perez, Owner and Trainer: "Jardinero! Lay down using your right foot, your right foot!" 14. SOUNDBITE (Spanish) Alejandro Perez, Owner and Trainer: "Whether it's night time or daytime the thing I have most present in my life is him. He's been an animal that has helped me a lot. Not just me. He's also helped my family." 15. Travelling shot of Jardinero asleep on the ground while Perez continues performance UPSOUND (Spanish) Alejandro Perez, Owner and Trainer: "Jardinero! Jardinero snore a bit. Snore! Snore!" (animal with eyes closed can be heard snoring) STORYLINE The Cuban town of Vinales, set in a lush green valley 200 kilometres west of Havana, is known for its beautiful karst scenery and tobacco leaf farms as well as trained livestock that can entertain foreign tourists. Most of the town's inhabitants make their living attending to the visitors. That includes Tomas, a water buffalo who on one particular morning was taking his usual shower before heading off to work. The guy with the garden hose is his trainer, 31-year-old Javier Pimentel. People come from miles around to see 14-year-old Tomas perform. His isn't some amazing acrobatic act or life-risking stunt show. Tomas simply listens. Tourists mount his saddle and he takes them for a short stroll around a local park while while obeying verbal commands from Pimentel. "Turn right", says Javier, and there goes Tomas. "A little to the left", and Tomas adjusts. "Stop!", says Javier and Tomas stops flat in his tracks. Certainly not your usual water buffalo behaviour. Especially when he's asked to take just one or two steps forward and he does just that without overstepping his bounds. Tomas is the only known water buffalo on the Caribbean island trained like a domesticated pet. Pimentel and Tomas have been a staple of the Vinales tourist trade for years. Pimentel trained Tomas when the Asian water buffalo was just two years old. They have been working together for 12 years now. "A family picture at my house is not a picture if it's without Tomas," said Javier. This particular species of buffalo was introduced to Cuba back in the 1980s to replenish a dwindling heard of cattle, but Pimentel said most people are afraid of the breed and somewhat cautious of their large horns and therefore unwilling to work with them. Day after day, Javier and Tomas leave their home and head to the park one kilometre (about half a mile) away to await the tourists. Pimentel charges the equivalent of about 1 US dollar for a ride on Tomas' back. Business isn't bad for the duo although tourism in the area has dropped a bit. But there's always competition. Meet Jardinero, a 17-year-old white ox who's also peddling his act with visiting tourists. Jardinero and his trainer, Alejandro Perez, have been together for 14 years and performing in Vinales for the past 8 years. Perez said he's uneducated, having dropped out of school after the fifth grade, but said he has an extraordinary knack at communicating with Jardinero. Jardinero's act is the opposite of Pimentel's: Jardinero gets paid to sleep and snore. People come from afar to see how this enormous beast is told to lay down, go to sleep, and snore. The pair don't charge a set price but they do accept tips. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1937EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: Poland Copernicus Saturday, 22 May 2010 STORY:Poland Copernicus- REPLAY Polish priests rebury astronomer criticised by RC church LENGTH: 02:26 FIRST RUN: 1630 RESTRICTIONS: No Access Poland TYPE: Polish/Natsound SOURCE: TVN STORY NUMBER: 646355 DATELINE: Frombork - 22 May 2010 LENGTH: 02:26 TVN - NO ACCESS POLAND SHOTLIST 1. Wide of church 2. Copernicus monument in front of church 3. SOUNDBITE (Polish) Bishop from Frombork, name not given: "Copernicus was unnoticed at the time of his death. He died quite alone. Here in Frombork they did not understand the significance of his research. Fame and glory came much later, after a century at least." 4. Church tower 5. SOUNDBITE (Polish) Female resident of Frombork, name not given: "A very important moment. The funeral is very important for the whole Polish nation, not only for us Warmian, but also the whole of Poland should be proud that we have Copernicus." 6. Priests walking in procession to church 7. Soldiers standing in line 8. Soldiers marching 9. Image of Copernicus on grave 10. Tilt down from church ceiling to spot where Copernicus will be buried 11. Coffin with remains of Copernicus at altar during ceremony 12. Professors from the University of Copernicus sitting in pews, soldiers standing 13. Plaque with name and dates of birth and death of Copernicus, tilt down to picture of Copernicus 14. Priest swings censer with incense in front of coffin containing remains of Copernicus 15. People wearing gowns and sashes walk as organ plays 16. Pallbearers carry coffin to burial spot 17. Priests standing in front of burial spot 18. Close shot of coffin on floor 19. Priests praying 20. Coffin is lowered into burial spot 21. Close-up shot of priest praying 22. Cover for burial spot is moved into place 23. Picture of Copernicus on coffin is seen through glass 24. Inscription on gravestone 25. People paying respects at grave, tilt down to view of grave STORYLINE Nicolaus Copernicus, the 16th-century astronomer whose findings were condemned by the Roman Catholic Church as heretical, was reburied by Polish priests as a hero on Saturday, nearly 5-hundred years after he was laid to rest in an unmarked grave. His burial in a tomb in the cathedral where he once served as a church canon and doctor indicates how far the church has come in making peace with the scientist whose revolutionary theory that the Earth revolves around the Sun helped usher in the modern scientific age. Copernicus, who lived from 1473 to 1543, died as a little-known astronomer working in what is now Poland, far from Europe's centres of learning. He had spent years labouring in his free time developing his theory, which was later condemned as heretical by the church because it removed Earth and humanity from their central position in the universe. His revolutionary model was based on complex mathematical calculations and his naked-eye observations of the heavens because the telescope had not yet been invented. After his death, his remains rested in an unmarked grave beneath the floor of the cathedral in Frombork, northern Poland, the exact location unknown. On Saturday, his remains were blessed with holy water by some of Poland's highest-ranking clerics before an honour guard ceremoniously carried the coffin through the imposing red brick cathedral and lowered it back into the same spot where part of his skull and other bones were found in 2005. A black granite tombstone now identifies him as the founder of the heliocentric theory, but also a church canon, a cleric that ranks below a priest. The tombstone is decorated with a model of the solar system, a golden sun encircled by six of the planets. At the urging of a local bishop, scientists began searching in 2004 for the astronomer's remains and eventually turned up a skull and bones of a 70-year-old man - the age Copernicus was when he died. A reconstruction made by forensic police based on the skull showed a broken nose and other features that resemble a self-portrait of Copernicus. In a later stage of the investigation, DNA taken from teeth and bones matched that from hairs found in one of his books, leading the scientists to conclude with great probability that they had finally found Copernicus. In recent weeks, a wooden casket holding those remains has lain in state in the nearby city of Olsztyn, and on Friday they were toured around the region to towns linked to his life. The pageantry comes 18 years after the Vatican rehabilitated the Italian astronomer Galileo Galilei, who was persecuted in the Inquisition for carrying the Copernican Revolution forward. Saturday's Mass was led by Jozef Kowalczyk, the papal nuncio and newly named Primate of Poland, the highest church authority in this deeply Catholic country. Poland also is the homeland of John Paul II, the late pope who said in 1992 that the church was wrong in condemning Galileo's work. Copernicus' burial in an anonymous grave in the 16th century was not linked to suspicions of heresy. Copernicus' major treatise - "On the Revolutions of the Heavenly Spheres" - was published at the very end of his life, and he only received a copy of the printed book on the day he died - 21 May 1543. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 1949EDT ------------------- END -- OF -- ITEM ------------------- AP-APTN-2330: +US Oil Spill Saturday, 22 May 2010 STORY:+US Oil Spill- WRAP Obama on leak; ADDS oil washes up onto delicate wetlands LENGTH: 02:41 FIRST RUN: 2330 RESTRICTIONS: AP Clients Only TYPE: English/Nat SOURCE: VARIOUS STORY NUMBER: 801280 DATELINE: Various - 22 May 2010 LENGTH: 02:41 AP TELEVISION - AP CLIENTS ONLY WHITEHOUSE.GOV - AP CLIENTS ONLY REPUBLICAN PARTY HANDOUT - AP CLIENTS ONLY SHOTLIST: ++NEW (FIRST RUN 2330 AMERICAS PRIME NEWS - 22 MAY 2010) AP TELEVISION - AP CLIENTS ONLY Grand Isle, Louisiana - 22 May 2010 1. Work crews cleaning up oil on the beach 2. Mid shot of crews shovelling debris into bag 3. Pull out from worker raking oily debris 4. Oil on beach 5. Close-up of oil on sand, pan 6. Local officials sitting in mobile command centre, watching aerial video of oil on beach and in water 7. SOUNDBITE: (English) Deano Bonano, Jefferson Parish Homeland Security Chief: "We're going to ask the national government, the federal government to step in and take over this operation from BP because BP is not putting the resources in place to stop this horrible environmental tragedy from occurring." 8. Close-up of oil on beach, pan 9. SOUNDBITE: (English) Deano Bonano, Jefferson Parish Homeland Security Chief: "We've been telling BP for weeks, we flew offshore, we give them the latitude and longitude. It was at 20 miles off. It was at 14 miles off. It was at ten miles off. It was at four miles off. They didn't do anything to stop it, and now it's on our coast." 10. Wide shot of truck with booming on back, pan to stack of white cotton booming 11. Cotton booming 12. SOUNDBITE: (English) Deano Bonano, Jefferson Parish Homeland Security Chief: "We're tired of being told that resources are available and doing the job, and they don't ever show up. Quite frankly, we're getting to point where we think we're being lied to." 13. Mid shot of booming on truck (FIRST RUN 1130 ME EUROPE PRIME NEWS - 22 MAY 2010) WHITEHOUSE.GOV - AP CLIENTS ONLY Washington DC - 22 May 2010 14. Wide of US President Barack Obama speaking during his weekly address 15. SOUNDBITE (English) Barack Obama, US President: "First and foremost, what led to this disaster was a breakdown of responsibility on the part of BP and perhaps others, including Transocean and Halliburton. And we will continue to hold the relevant companies accountable, not only for being forthcoming and transparent about the facts surrounding the leak, but for shutting it down, repairing the damage it does and repaying Americans who've suffered a financial loss." ++NEW (FIRST RUN 2330 AMERICAS PRIME NEWS - 22 MAY 2010) AP TELEVISION - AP CLIENTS ONLY Grand Isle, Louisiana - 22 May 2010 16. Workers cleaning oil from beach ++NEW (FIRST RUN 2330 AMERICAS PRIME NEWS - 22 MAY 2010) REPUBLICAN PARTY HANDOUT - AP CLIENTS ONLY Location unknown - 22 May 2010 ++AUDIO AND VIDEO AS INCOMING++ 17. SOUNDBITE: (English) David Vitter, US Senator for Louisiana: "It's so frustrating to many Louisianans that while the crisis actually continues in the Gulf, while we're still fighting to contain the well, Washington Democratic Committee chairmen have rushed to create media events for television cameras instead of devoting full attention to stopping the immediate problem." ++NEW (FIRST RUN 2330 AMERICAS PRIME NEWS - 22 MAY 2010) AP TELEVISION - AP CLIENTS ONLY Grand Isle, Louisiana - 22 May 2010 18. Workers raking oil from sand STORYLINE: The gooey oil washing into the maze of marshes along the Gulf Coast could prove impossible to remove, leaving a toxic stew lethal to fish and wildlife, government officials and independent scientists said. Officials are considering some drastic and risky solutions: They could set the wetlands on fire or flood areas in hopes of floating out the oil. The only viable option for many impacted areas is to do nothing and let nature break down the spill. More than 50 miles of Louisiana's delicate shoreline already have been soiled by the massive slick unleashed after the Deepwater Horizon rig burned and sank last month. Officials fear oil eventually could invade wetlands and beaches from Texas to Florida. Louisiana is expected to be hit hardest. Oil that has rolled into shoreline wetlands coats the stalks and leaves of plants such as roseau cane, the fabric that holds together an ecosystem that is essential to the region's fishing industry and a much-needed buffer against Gulf hurricanes. Soon, oil will smother those plants and choke off their supply of air and nutrients. In some eddies and protected inlets, the ochre-coloured crude has pooled beneath the water's surface, forming clumps several inches deep. With the seafloor leak still gushing at least hundreds of thousands of gallons a day, the damage is only getting worse. Coast Guard officials said the spill's impact now stretches across a 150-mile swath, from Dauphin Island, Alabama to Grand Isle, Louisiana. Anger was growing along the US Gulf Coast on Saturday, with many wondering how to clean up the monthlong mess - especially now that BP's latest try to plug the blown-out well won't happen until at least Tuesday. "We're going to ask the national government, the federal government to step in and take over this operation from BP because BP is not putting the resources in place to stop this horrible environmental tragedy from occurring," said Deano Bonano, the Homeland Security Chief for Jefferson Parish, which stretches from the New Orleans metropolitan area to the coast. The oil has forced officials to close a public beach on Grand Isle, south of New Orleans, as globs of crude that resembled melted chocolate washed up. Others have questioned why BP PLC was still in charge of the response. "We're tired of being told that resources are available and doing the job, and they don't ever show up. Quite frankly, we're getting to point where we think we're being lied to," said Bonano. After the 1989 Exxon Valdez spill in Alaska, Congress dictated that oil companies be responsible for dealing with major accidents - including paying for all cleanup - with oversight by federal agencies. BP, which is in charge of the cleanup, said it will be at least Tuesday before engineers can shoot mud into the blown-out well at the bottom of the Gulf, yet another delay in the effort to stop the oil. A so-called "top kill" has been tried on land but never 5,000 feet (1,500 metres) underwater, so scientists and engineers have spent the past week preparing and taking measurements to make sure it will stop the oil that has been spewing into the sea for a month. They originally hoped to try it as early as this weekend. Crews will shoot heavy mud into a crippled piece of equipment atop the well, which started spewing after the drilling rig Deepwater Horizon exploded April 20 off the coast of Louisiana, killing 11 workers. Then engineers will direct cement at the well to permanently stop the oil. BP, which was leasing the rig and is responsible for the cleanup, has tried and failed several times to halt the oil. Chief Operating Officer Doug Suttles said Friday that a mile-long (1.6-kilometre-long) tube inserted into the leaking pipe is sucking about 92,400 gallons (350,000 litres) of oil a day to the surface, a figure much lower than the 210,000 gallons (795,000 litres) a day the company said the tube was sucking up Thursday. Suttles said the higher number is the most the tube has been sucking up at any one time, while the lower number is the average. Even under the most conservative estimate, about 6 (m) million gallons (22.7 million litres) have leaked so far, more than half the amount spilled by the Exxon Valdez. The month-old oil disaster has unleashed a gusher of congressional hearings that may prove nearly as hard to cap as the blown BP well. On Saturday, the blossoming investigation into the spill progressed when President Barack Obama announced that former Florida Senator Bob Graham and former EPA Administrator William K. Reilly will lead a presidential commission probing the spill. In an election year rife with political posturing, the spill is proving an easy target for lawmakers, whose fears of being swept out of office by an anti-incumbent wave were reinforced by Tuesday's batch of primaries. One Republican senator said there would be plenty of time later for hearings into the Gulf oil spill. As he criticised Democrats for holding hearings, David Vitter of Louisiana said the focus now should be on stopping the oil flow and protecting the coastline. He spoke in his party's weekly address. Public interest in the spill is high - after lawmakers pressed BP for a live video feed of the leak this week, so many people tried to view it that they crashed the government Web site where it was posted. BP executives say the only guaranteed solution to stop the leak is a pair of relief wells crews have already started drilling, but the work will not be complete for at least two months. That makes the stakes even higher for the top kill. BP is also developing several other plans in case the top kill doesn't work, including an effort to shoot knotted rope, pieces of tyre and other material - known as a junk shot - to plug the blowout preventer, which was meant to shut off the oil in case of an accident but did not work. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 05-22-10 2118EDT ------------------- END -- OF -- ITEM -------------------

Universal International Newsreels

Universal Newsreel

The Senate Commerce Committee holds hearings on Toyota automobile recalls and the government's response. Those appearing are: Senator Kay Baily Hutchinson, Transportation Ray La Hood; David Strickland, National Highway Transportation Safety Administration; Clarence Ditlow, Executive Director of the Center for Auto Safety. Toyota officals: Mr. Shinichi Sasaki, Executive Vice President, Toyota Motor Corporation Mr. Takeshi Uchiyamada, Executive Vice President, Toyota Motor Corporation Mr. Yoshimi Inaba, President and Chief Executive Officer, Toyota Motor North America, Inc 10:02:20 . >> IT'S ABOUT THEIR SAFETY AND 10:03:38 SECURITY, AND NOTHING IS MORE IMPORTANT THAN THAT. 10:03:42 WE ARE ALL HERE TODAY BECAUSE WE KNOW SOMETHING HAS GONE TERRIBLY 10:03:46 WRONG. THE SYSTEM MEANT TO SAFEGUARD 10:03:50 AGAINST FAULTY VEHICLES HAS FAILED AND IT NEEDS TO BE FIXED, 10:03:56 AND IT NEEDS TO BE FIXED RIGHT AWAY. 10:03:59 THIS IS AN IMPORTANT HEARING. ONCE WE HAVE DEDICATED ENTIRE 10:04:06 DAY, WHICH HAVE NOT DONE THAT BEFORE, TO ONE SUBJECT SO THAT 10:04:10 WE CAN EXAMINE THE PROBLEMS AND GET AFTER THE SOLUTION IT IS -- 10:04:18 THEFT HOW WE CAN GET TO THE SOLUTION. 10:04:22 IT IS ABOUT TOYOTA AND THE SAFETY OVERSIGHT SYSTEM AND HOW 10:04:27 TO FIX IT. IT IS NOT JUST FOR A FUTURE 10:04:30 PROBLEM, BUT RIGHT NOW. IN ORDER TO GET TO THE BOTTOM OF 10:04:35 THE DANGERS OF SUDDEN ACCELERATION, WHICH ARE NOT 10:04:39 ADDRESSED IN THE RECALLS. HARDLY THE WAY WE RESPOND WILL 10:04:44 AND MUST HAVE A LEFT INTACT ON THE CAR MAKER AND ITS EMPLOYEES, 10:04:50 THE FEDERAL AGENCY CHARGED WITH OVERSEEING SAFETY AND ON THE 10:04:55 CONFIDENCE OF THE PUBLIC FOR YEARS TO COME. 10:04:58 THIS HEARING WILL FOCUS ON THE GOVERNMENT'S ROLFES AND THIS 10:05:02 AFTERNOON WE WILL FOCUS ON THE COMPANY'S LOTH. 10:05:08 -- COMPANY ROLL. IT IS NO SECRET THAT TOYOTA IS 10:05:14 VERY IMPORTANT TO OUR NATIONAL ECONOMY. 10:05:18 THE CARMAKER OPERATES 10 PLANTS ACROSS THE COUNTRY. 10:05:24 I'VE WORKED VERY HARD TO BRING A TOYOTA ENGINE AND TRANSMISSION 10:05:30 PLANT TO BUFFALO, WEST VIRGINIA BECAUSE I KNEW TOYOTA WAS BUILT 10:05:36 ON THE PHILOSOPHY OF QUALITY FIRST. 10:05:40 IF THEY DESIGNED AND BUILT THE MOST OFT SAFECARD POSSIBLE, JOBS 10:05:45 WILL FOLLOW. SOMEWHERE ALONG THE WAY, PUBLIC 10:05:50 SAFETY TOOK A BACKSEAT AND CORPORATE PROFITS DROVE COMPANY 10:05:54 DECISIONS FIFTH IF TOYOTA WANTS TO REMAIN SUCCESSFUL AND GAIN 10:06:01 CONSUMER TRUST, IT NEEDS TO FIND THIS BALANCE ONCE AGAIN. 10:06:06 TOYOTA'S CONSUMERS AND INCREDIBLE OF EMPLOYEES WHO HAVE 10:06:10 WON ALL SORTS OF AWARDS AND DESERVE NOTHING LESS THAN THIS. 10:06:14 THEY DRIVE A TOYOTA IS TO. -- THEY DRIVE A TOYOTA SCHIEDAM, 10:06:21 TOO. THEY NEED GREATER RESOURCES AND 10:06:29 AUTHORITY IN THE FUTURE. THEIR ACTIONS AND LACK OF ACTION 10:06:34 IN THE YEARS LEADING UP TO TODAY ARE DEEPLY TO CUT A -- DEEPLY 10:06:39 TROUBLING. THEY COUNT ON THE AMERICAN 10:06:41 PEOPLE TO PROTECT THEM, AND PROVIDE THEM WITH CLEAR AND 10:06:46 RELIABLE INFORMATION. TODAY, THAT PICTURE IS NOT 10:06:49 CLEAR. ONCE MORE, THE AMERICAN PEOPLE 10:06:53 NOT YET CLEARLY UNDERSTAND HOW THIS HAPPENED AND HOW IT WILL BE 10:06:57 SOLVED, WHICH DEFECTS HAVE BEEN ADDRESSED AND WHICH DANGERS 10:07:02 REMAIN AND WHAT THE RECALLS ARE FIXING AND NOT FIXING. 10:07:07 WE NEED TO LOOK BACK AND FOCUS FORWARD. 10:07:11 WE WILL HEAR FROM EXECUTIVES ABOUT HOW THESE PROBLEMS 10:07:16 OCCURRED AND WHY THE COMPANY DID NOT RESPOND MORE QUICKLY. 10:07:20 I ALSO WANT TO KNOW ABOUT PLANS TO FIX THE ONGOING PROBLEMS 10:07:26 WITH SUDDEN ACCELERATION AND SET ITSELF ON A NEW COURSE TO 10:07:31 IDENTIFY NEEDED RECALLS IN THE FUTURE AND PREVENT NEW DEFECTS. 10:07:35 A BIG COMPANY, SERIOUS PROBLEMS, VERY IMPORTANT TO BE FIXED FOR 10:07:39 THE FUTURE AND RIGHT AWAY. WE WILL HEAR FROM NHTSA AND THE 10:07:45 DEPARTMENT OF TRANSPORTATION OFFICIALS AS TO WHY THEY DID NOT 10:07:50 ADEQUATELY CONNECT THE DOTS AND MOVE AGGRESSIVELY TO 10:07:53 INVESTIGATE. I ALSO WANT TO KNOW THE PLAN OF 10:07:57 NHTSA TO GET TO THE BOTTOM OF SUDDEN ACCELERATION, INDUSTRY- 10:08:01 WIDE, AND TO MAKE SURE THAT IT HAS THE RESOURCES AND THE 10:08:06 AUTHORITY TO FULFILL THAT MISSION. 10:08:09 LAST, BUT NOT LEAST, WE WILL HEAR IN A PANEL FOLLOWING THIS 10:08:17 ONE, WHO THE CENTER WHICH THE CENTER FOR AUTO SAFETY -- THE 10:08:23 CENTER FOR AUTO SAFETY. I DO INTEND TO WORK ON 10:08:28 COMPREHENSIVE LEGISLATION TO GET AT ALL OF THESE ISSUES IN A REAL 10:08:31 WAY. I WILL DISCUSS THAT AT THE END 10:08:33 OF THE DAY. WE NEED TO LOOK AT CURRENT LAW 10:08:39 AND ASKED IF IT IS STRONG ENOUGH TO PREVENT IF SOMETHING 10:08:44 -- TO PREVENT SOMETHING LIKE THIS FROM HAPPENING AGAIN. 10:08:48 I KNOW MY COLLEAGUES HAVE CONTRIBUTED AND I WELCOME THAT. 10:08:53 THE AMERICAN PEOPLE DESERVE A TOP TO BOTTOM REVIEW, NOT JUST 10:08:59 THE PAST ERRORS, BUT THE ROAD AHEAD. 10:09:02 THEY DESERVE MORE THAN REASSURANCES. 10:09:06 THEY DESERVE FULL DISCLOSURES, ACCOUNTABILITY AND SOLUTIONS. 10:09:10 THANK YOU FOR ALL OF OUR WITNESSES FOR PARTICIPATING AND 10:09:16 WORKING WITH OUR COMMITTEE. I LOOK FORWARD TO HEARING FROM 10:09:20 ALL OF YOU. >> THANK YOU. 10:09:31 THANK YOU, VERY MUCH SIR. THE PAST FEW WEEKS HAVE BEEN 10:09:39 EXTRAORDINARY. WHENEVER YOU TURN ON THE 10:09:44 TELEVISION SET OR LISTEN TO THE RADIO, WATCH THE PRINTED PAGES, 10:09:51 JUST ABOUT EVERY ARTICLE IS ON TOYOTA -- THE FRONT-PAGE 10:09:56 ARTICLES. THE TOYOTA PROBLEM. 10:10:00 WE HAVE HAD INTERVIEWS OF ATTORNEYS WHO ARE BRINGING CLASS 10:10:05 SINCE. WE HAVE TALK SHOWS DETERMINING 10:10:09 HOW LONG IT WILL TAKE THIS COMPANY TO RESTORE ITS 10:10:13 CREDIBILITY AND I SUPPOSE THAT IT WOULD BE JUSTIFIED FOR 10:10:21 AMERICANS TO GET THE IMPRESSION THAT THIS IS A TOYOTA PROBLEM. 10:10:28 MR. CHAIRMAN, I DECIDED TO DO A LITTLE RESEARCH AND I WOULD LIKE 10:10:33 TO SHARE SOME OF THESE NUMBERS WITH YOU. 10:10:37 THESE NUMBERS WERE PREPARED BY THE NHTSA, PREPARED YESTERDAY, 10:10:49 MARCH THE FIRST, 2010. IT IS VERY CURRENT. 10:10:55 IT RUNS FROM THE CALENDAR YEAR 2000 TO AND INCLUDING YESTERDAY. 10:11:04 IN THE YEAR 2000, A TOTAL OF 7,827,164 VEHICLES WERE 10:11:12 RECALLED. OF THAT NUMBER, FORD MOTOR CO., 10:11:22 7,485,466, TOYOTA 8379, ON DAY 338,003 AND 19. 10:11:32 IN THE YEAR 2001, A TOTAL OF 11,466,361 VEHICLES WERE 10:11:41 RECALLED. GENERAL MOTORS -- 2 MILLION. 10:11:48 CHRYSLER, TWO MILLION 609,045. FORD, 5,000,600. 10:12:00 MITSUBISHI, 379919. TOYOTA, -- 10:12:15 2002, 15,186,000 CARS WERE RECALLED. 10:12:21 DURING THAT YEAR, GENERAL MOTORS 4 MILLION. 10:12:28 FORD 2 MILLION. CHRYSLER 6 MILLION. 10:12:39 ALTHOUGH THE 496,000. I WOULD LIKE TO PUT THE REST OF 10:12:45 THE NUMBERS IN THE RECORD. A DECIDED TO READ THESE NUMBERS 10:12:50 AND THEY ARE VERY INTERESTING. IT IS NOT A TOYOTA PROBLEM, IT 10:12:55 IS AN INDUSTRY PROBLEM. LOOKING AT THESE NUMBERS, ONE 10:13:03 WITH THE IMPRESSION THAT MAYBE IT IS FORD MOTORS, OR CHRYSLER, 10:13:07 OR GENERAL MOTORS, AND I THINK WE SHOULD BE HONEST WITH 10:13:11 OURSELVES. IF IT IS AN INDUSTRY PROBLEM, WE 10:13:16 SHOULD HEAR FROM THE INDUSTRY, NOT JUST TOYOTA. 10:13:21 I WOULD LIKE TO COMMEND NHTSA FOR COMPILING THE STATISTICS. 10:13:27 THEY ARE VERY HELPFUL. IT GIVES A CLEAR PICTURE. 10:13:32 IF I MAY RESPECTFULLY SUGGEST THE INVESTIGATION AND INQUIRY 10:13:38 SHOULD BE BASED UPON THE INDUSTRY INSTEAD OF JUST TOYOTA. 10:13:43 THANK YOU, VERY MUCH, SIR. >> THANK YOU. 10:13:51 FOLLOWING BOTH THIS MORNING FROM THE STATEMENTS AND THIS 10:13:55 AFTERNOON'S STATEMENTS, PEOPLE GO BY SENIORITY. 10:14:01 >> SENT -- MR. CHAIRMAN, THANK YOU VERY MUCH. 10:14:07 THIS IS AN INTERESTING ISSUE. WE TRAVELED ONLY AS FAST AS A 10:14:12 HORSE COULD CARRY US FROM THE ROMAN LEGION TO LEWIS AND CLARK. 10:14:17 NOW, ALMOST EVERYONE HAS IT HIGHER. 10:14:21 THAT ARE MADE BIGGER AND FASTER AND SAFER. 10:14:26 EXCEPT, THIS ISSUE OF SAFER, NOT ALL CARS HAVE BEEN MADE TO THE 10:14:31 SAME STANDARDS. WE HAVE HAD A LOT OF FREE CALLS. 10:14:35 AT FIRST, EARLY ON, THE MANUFACTURERS WERE NOT 10:14:39 ENTHRALLED WITH RECALLS. YOU WILL RECALL THE PINTO AND 10:14:46 THE FIRES AND THE INDUSTRY WAS FORCED TO UNDERSTAND THE NEED 10:14:50 FOR RECALL AND TO OWN UP TO DEFECTS. 10:14:55 THE SPECIFIC OTHER DAY IS GOING TO -- IS DEDICATED TO TOYOTA. 10:15:00 IT IS THE WORLD'S LARGEST THERE IS A QUESTION OF SUDDEN 10:15:05 ACCELERATION IN CERTAIN MODELS. PEOPLE DIED, THEIR RELATIVES 10:15:11 COMPLAINED, MORE PEOPLE DIED, AND MORE PEOPLE COMPLAINED. 10:15:16 THE QUESTION FOR THIS HEARING IS WHAT ABOUT THE GOVERNMENT 10:15:21 AGENCIES THAT ARE ENGAGED IN A WORRIED ABOUT SAFETY ISSUES? 10:15:25 DID THEY TAKE THESE THINGS SERIOUSLY? 10:15:28 TODAY'S SERIOUSLY INVESTIGATE? WERE THEY FIERCE ADVOCATES FOR 10:15:31 THE PUBLIC GOOD, OR DID THEY BECOME PAPER TIGERS? 10:15:38 I THINK THIS HERE IN WILL GIVE US A LOT OF INFORMATION. 10:15:42 THIS AFTERNOON, IT IS IF -- IT IS WITH RESPECT TO THE 10:15:46 AUTOMOBILE COMPANY, IN THIS CASE TOYOTA, WHAT DID THEY KNOW 10:15:51 AND WHAT DID THEY DO WITH WHAT THEY KNEW? 10:15:54 WHAT KIND OF INFORMATION TO DESCRIBE TO THE FEDERAL 10:15:58 AGENCIES? ALL OF THESE THINGS ARE VERY 10:16:02 IMPORTANT . IT IS ABOUT A MATTER OF TRUST, 10:16:06 THE AMERICAN PEOPLE BEING ABLE TO TRUST THE COMPANY THEY 10:16:08 BELIEVE WILL SELL THEM AN AUTOMOBILE THAT A SAFEwMo AND, 10:16:14 PEOPLE HAVING TRUST AND CONFIDENCE IN A FEDERAL AGENCY 10:16:17 THAT IS DESIGNED TO q l3 ADDRES SAFETY ISSUES. 10:16:20 I AMR> NOT AN EXQURT, BUT E READ AS MUCH AS I COULD RECENTLY 10:16:25 ON THE HEARING SET OUT AND HELD END OF THE CROWN THAT HAS BEEN 10:16:29 PROVIDED TO US, I THINK THEY'E VERY SERIOUS QUESTIONS OF A 10:16:33 WELL-ROUNDED -- ALL THE WAY AROUND PEOPLE EXPERIENCED TRAGIC 10:16:41 CONSEQUENCES BECAUSE OF THE ACCELERATION AND THE COMPANY 10:16:44 PUSHED THAT UP, SAYING THAT THAT IS A FLOOR MAT ISSUE OR 10:16:49 SOMETHING LIKE THAT. THERE IS ALSO SOME EVIDENCE THAT 10:16:53 THE FEDERAL AGENCY DID NOT TAKE IT AS SERIOUSLY AS I WISH A 10:16:58 FEDERAL AGENCY WOULD. WE WILL HAVE THE CHANCE TO TEST 10:17:01 SOME DIFFICULT AND TOUGH QUESTIONS. 10:17:06 WHATEVER THE CONSEQUENCES AND WHAT IS HAPPENING GOING FOR TO 10:17:09 MAKE SURE THIS IS NOT HAPPENING AGAIN? 10:17:12 >> THANK YOU. >> THANK YOU, MR. CHAIRMAN. 10:17:18 LAST AUGUST, A CALIFORNIA PATROL OFFICER, HIS DAUGHTER, AND 10:17:26 BROTHER-IN-LAW WERE KILLED IN A TRAGIC ACCIDENT. 10:17:29 A HEART WRENCHING 911 CALL PLACED SECONDS BEFORE THE CALL 10:17:36 DESCRIBED A TERRIFIC SCENE IN WHICH THEIR RENTED LEXUS REACHED 10:17:39 SPEEDS OF 120 MILES PER HOUR WITH NO WAY OF STOPPING IN THE 10:17:44 END, OF A FAMILY COULD DO WAS PRAY. 10:17:48 THIS TRAGEDY SHOULD NEVER HAVE HAPPENED AND WE ARE HERE TO 10:17:52 INSURE THAT IT NEVER HAPPENS AGAIN. 10:17:55 THE RECALLS AND TRAGIC DEATHS ASSOCIATED WITH TOYOTA MODELS 10:18:02 HAS REIGNED -- HAS RAISED SERIOUS QUESTIONS. 10:18:06 NHTSA HAS CONDUCTED EIGHT INVESTIGATIONS, BUT MR. 10:18:11 SECRETARY, MY FRIEND, I WANT TO ASK YOU IF YOU THINK THEYK 10:18:18 INVESTIGATIONS. IN ADDITION, I WANT TO AS YOUR 10:18:23 OPINION BECAUSE YOU HAVE IT -- BECAUSE I HAVE SO MUCH RESPECT 10:18:27 FOR YOU, I AM DEEPLY CONCERNED ABOUT REPORTS THAT FORMER NHTSA 10:18:32 EMPLOYEES WHO WERE LATER EMPLOYED BY TOYOTA MAY HAVE 10:18:38 PLAYED A ROLE IN INFLUENCING THE RESULTS. 10:18:42 I WANT TO SUBMIT A RECORD FROM A CBS REPORT. 10:18:53 THE JOB AT NHTSA WAS CONDUCT STUDIES. 10:19:00 IN 2002, HE GAVE HIS TWO-WEEK NOTICE, AND JOINED TOYOTA'S TEAM 10:19:07 AND WORKED UNDER THE MAN WHO HAD BEEN HIS TOYOTA CONTACT. 10:19:10 THE TWO HELPED NEGOTIATE WITH FORMER NHTSA COLLEAGUES TO 10:19:15 LIMIT PROBES INTO TOYOTA. THEY CONVINCED NHTSA TO FOCUS 10:19:23 ONLY ON THE BRIEF BURSTS OF ACCELERATIONS, REALLY NOT EVEN 10:19:28 SAID HAVE ALLEGEDLY LEFT -- RULING OUT ACCELERATION THAT HAS 10:19:33 LEFT -- LED TO THE DEATHS. NO UNDERSTAND THE CONCERN IN THE 10:19:40 CAR, ESPECIALLY WHEN CARRYING Y CHILDREN AND GRANDCHILDREN. 10:19:44 I BELIEVE THAT EVERY TOYOTA MODEL SHOULD BE ANALYZED BY AN 10:19:48 OBJECTIVE PARTY. EVERY FIX, BY AN OBJECTIVE 10:19:53 PARTY. EVERY CAR OWNER SHOULD HAVE THE 10:19:57 ABILITY TO HAVE THE CAR FIXED AT THE EARLIEST POSSIBLE TIME. 10:20:02 I TRUST THAT UNDER YOUR LEADERSHIP, THIS COMMITTEE'S 10:20:06 WORK WILL MOVE US TOWARD THOSE STEPS. 10:20:08 [ >> THANK YOU. q MRS. SNOWE. 10:20:15 1' >> THANK YOU. WE HAVE AN OBLIGATION TO 10:20:18 DETERMINE WHERE THESE MASSIVE BREAKDOWNS OCCURREDokq BOTH IN E 10:20:25 COMPANY AND THE FEDERALq AGENCY THAT LED TO THE PERPETUATION OF 10:20:30 DEFECTS RESULTED IN A LOSS OF LIFE -- AND A LOSS OF LIFE . 10:20:37 NHTSA HAD 26% INCREASE % INCREASE IN COMPLAINTS. 10:20:49 THE FAILED TO INVESTIGATE THIS ISSUE. 10:20:53 IT POINTS TO NHTSA'S ENFORCEMENT PROGRAM. 10:20:57 IT IS OUTDATED. IT LETS SOFTWARE EXPERTISExD D 10:21:02 EXPERTS NECESSARY. ALSO, WE HAVE A COMPANY THAT 10:21:09 EXPLOITED NHTSA'S WEAKNESSES IN AVOIDING COMPULSORY REPORTING OF 10:21:17 INFORMATION. MANY OF US HERE ARE REMINDED F 10:21:22 THE TIME AND IN WHICH WE HAVE THE FIRESTONE TIRE RECALL, A 10:21:26 SESSION JUST ABOUT 10 YEARS AGO. AT THAT TIME, TRANSPORTATION 10:21:31 SECRETARY RODNEY SLATER APPEARED BEFORE THIS COMMITTEE ASKING TO 10:21:38 GRANT NHTSA AUTHORITIES THAT THEY CAN GET THE DATA THAT THEY 10:21:42 REQUIRED. WITHIN MONTHS, WE PASSED AN AT 10:21:47 THAT CREATED AN EARLY WARNING REPORTING t( SYSTEM, REQUIRING 10:21:51 MANUFACTURERS TO REPORT DEFECTS THAT RESULTED IN INJURIES OR 10:21:55 ECONOMIC DAMAGES. WHAT IS AMAZING IS THAT IN THE 10:22:01 DIRECT AFTERMATH, THERE WAS A NUMBER OF REPORTS REGARDING 10:22:04 TOYOTA'S ACCELERATIONS. THE INSPECTOR GENERAL OF THE 10:22:09 DEPARTMENT OF TRANSPORTATION ISSUED TWO REPORTS CRITICIZING 10:22:14 NHTSA FOR FAILING TO ACT ON ITS OWN REPORTS AND FAILING TO SET 10:22:20 UP BASE THIS -- SET UP A SYSTEM ADEQUATE TO DO THIS 10:22:25 INVESTIGATION. THOSE OF US THAT WERE HERE WILL 10:22:29 REMEMBER THAT IT IS A DISTURBING PATTERN THAT IS ALL TOO 10:22:32 FAMILIAR. STATE FARM NOTIFIED NHTSA OF THE 10:22:39 FIRESTONE PROBLEM. IN 2004, STATE FARM THE TO FIGHT 10:22:46 NHTSA THAT THERE WAS A TREND OCCURRING WITH RESPECT TO TOYOTA 10:22:51 ACCELERATION. THEY CLOSED THE INVESTIGATION, 10:22:56 SAYING THAT THE AGENCY'S RESOURCES WERE NOT WARPa 10:23:00 FURTHER EXAMINING THIS ISSUE. INq 2004, STATE FARM AGAIN 10:23:06 NOTIFIED NHTSA BUT DID NOT EXPAND IT INTO A INDEPENDENT 10:23:14 INVESTIGATION. WE KNOW TOYOTA HAD A RECALL OF 10:23:17 IN EUROPE. IT WAS ONLY AFTER THE CRASH THAT 10:23:21 SENATOR BOXER IS REFERRING TO, THAT RESULTED IN A SIGNIFICANT 10:23:27 RECALL. LAST WEEK, YOU HAVE THE TOYOTA 10:23:32 USA PRESIDENT SAYING THAT HE WAS NOT SURE ABOUT RULING OUT q THE 10:23:39 ELECTRONIC SYSTEM. THE VERY NEXT DAY, THE PRESIDENT 10:23:43 SEEMS AT SOME OF THE CONTINENT THERE WERE NO FLAWS IN THE 10:23:46 DESIGN SYSTEM. THE BOTTOM LINE IS THAT WE HAVE 10:23:50 A HUGE PROBLEM. NHTSA CAN NOT INDEPENDENTLY 10:23:53 VERIFIED OR CORROBORATE MISINFORMATION THE CONTRADICTORY 10:23:56 ASSERTIONS THAT ARE OCCURRING EITHER BECAUSE THEY LACK THE 10:24:00 EXPERTISE, OR THEY HAVE NOT CONTACTED IT OUT, WHATEVER THEY 10:24:05 NEED TO DO IN AN INDEPENDENT INVESTIGATION. 10:24:08 THEY ALLOWED A COMPANY TO HIDE BEHIND PROPRIETARY DATA AND 10:24:12 CORPORATE RECORDS. NHTSA'S PRIMARY MISSION IS TO 10:24:15 SAVE LIVES AND PREVENT INJURIES. IF THIS IS AN EXAMPLE OF HOW THE 10:24:21 POLICE A PRIMARY DESIGN FLAW IN A MAJOR AUTO MAKER, HOW CAN WE 10:24:25 HAVE CONFIDENCE THAT THEY CAN LEAD OF -- LIVE UP TO THE 10:24:30 IMPORTANT WORD IN THEIR NAME, THAT OF COURSE IS "SAFE BEEPER 10:24:33 TEL -- "SAFETY." . 10:24:41 CLOCKS PROFITS SHOULD -- >> PROFITS SHOULD NEVER TRUMP 10:24:49 SAFETY. I AM HIGHLY SKEPTICAL, BORDERING 10:24:54 ON CYNICAL, WHEN IT COMES TO THE AUTO INDUSTRY, AND NOW WE HAVE 10:25:00 ANOTHER EXAMPLE OF THEM DRAGGING FEET WHEN IT COMES TO SAFETY. 10:25:04 I REMEMBER WHEN I WAS A YOUNG CONGRESSMAN, WE HAVE BEEN ABLE 10:25:09 TO PUT IN ON A TRIAL BASIS, AIR BAGS. 10:25:13 A GRANDMOTHER AND A GRANDDAUGHTER GOING DOWN A TWO- 10:25:20 LANE HIGHWAY HAD A HEAD ON COLLISION AND THAT GRANDMOTHER 10:25:28 AND GRANDDAUGHTER WALKED AWAY FROM THAT HEAD ON COLLISION. 10:25:33 YET, OVER AND OVER THE AUTOMOBILE INDUSTRY PROHIBITED 10:25:38 US FROM HAVING AIR BAGS UNTIL ENOUGH PEOPLE DIED AND NOW, OF 10:25:46 COURSE, IT IS STANDARD ISSUE. HERE WE COME WITH A SIMILAR 10:25:51 ISSUE. WHAT WILL IT TAKE FOR US TO WAKE 10:25:55 UP? THE SAD THING IS WE ARE IN THE 10:25:59 MIDDLE OF A RECESSION, AND GUS WHO IS BEING HURT? 10:26:04 BUT TOYOTA DEALERS. U.S. ANYONE WHETHER OR NOT THEY 10:26:09 THINK A TOYOTA IS SAFE, AND YOU WOULD BE SHOT AT THE PERCENTAGE 10:26:14 OF PEOPLE THAT WOULD SAVE NO AND THERE ARE VOTING WITH THEIR FEET 10:26:18 BECAUSE THEY ARE NOT WALKING INTO THE TOYOTA DEALERS. 10:26:22 IT IS HURTING THEM, THEIR SUPPLIERS, AND ALL OF THE SMALL 10:26:27 BUSINESSES THAT ARE IN THE MIDDLE OF A RECESSION. 10:26:29 THANK YOU FOR GETTING TO THE BOTTOM OF THIS. 10:26:35 A ONE TO THINK THE SECRETARY. HE HAS BEEN STRAIGHTFORWARD, 10:26:39 VERY CLEAR. KEEP AT IT. 10:26:44 >> THANK YOU. CENTER PRIOR -- SENATOR PRYOR. 10:26:53 >> I WANT TO THANK YOU FOR HAVING THIS HEARING. 10:26:57 YOU D!Y MAT THIS IS NOT A WITCH HUNT. 10:27:01 WE WANT TO LOOK AT WHAT IS GOING ON IN THE FIELD AND WHAT TOYOTA 10:27:07 HAS BEEN DOING AND HOW THIS HAS BEEN HANDLED. 10:27:10 WE ARE DOING OUR OVERSIGHT HERE TODAY. 10:27:13 I WANT TO THANK YOU FOR THAT. t(I HAVE SEEN SOME DOCUMENTS THT 10:27:20 I WOULD LIKE TO PASS OUT TO THE COMMITTEE WHEN THE TIME IS 10:27:23 APPROPRIATE TO LOOK AT DOCUMENTS THAT NHTSA PROVIDED TO THE 10:27:30 COMMITTEE AND WE MAY HAVE SOME QUESTIONS FOR OUR NHTSA WITH 10:27:34 THIS. THANK YOU ALL FOR BEING HERE. 10:27:38 THIS IS A VERY IMPORTANT MATTER. qTHERE ARE 12 OWNERS ALL OVER TE 10:27:43 COUNTRY BETTER CONCERNED. -- THERE ARE TOYOTA OWNERS ALL 10:27:48 OVER THE COUNTRY THAT ARE CONCERNED. 10:27:51 WE NEED TO DO EVERYTHING WE CAN TO KEEP OUR ROADS SAFE. 10:27:57 >> THANK YOU, IF YOU ARE THE HEAD OF OUR SAFETY AND CONSUMR 10:28:03 SUBCOMMITTEE. YOUR WORDS COUNT. 10:28:07 CENTER EISA -- CENTER DARRELL ISSA. 10:28:17 >> TO LET MY FORMER COLLEAGUE RAY LAHOOD. 10:28:20 THE SPOKE TO TOYOTA DEALERS IN GEORGIA AND CALLED HIM TO SEE 10:28:27 HOW MY CONSTITUENTS WERE BEING CHEATED. 10:28:30 THE REPORT I GOT -- WERE BEING TREATED. 10:28:34 THE REPORT I GOT GAVE ME SOME VERY IMPRESSIVE NUMBERS, WHICH I 10:28:42 APPRECIATE, BUT IT CAUSED ME TO THINK IF WE HAVE BEEN JUST AS 10:28:47 QUICK TO RESPOND TO THE FIRST DEATH THAT TOOK PLACE IN ON THE 10:28:50 HIGHWAY, WE MAY HAVE SAVED LIVES. 10:28:56 THE MOST IMPORTANT THING FOR US TO HEAR IS WHAT IS THE 10:29:00 THRESHOLD? WE NEED TO ERR ON THE SIDE OF 10:29:04 CAUTION. WE OUGHT TO BE CONSERVATIVE OF 10:29:06 THE FIRST HINT. I THANK YOU FOR THE TIME, MR. 10:29:12 CHAIRMAN. >> THANK YOU. 10:29:22 >> THANK YOU, MR. CHAIRMAN. I WANT TO THANK YOU FOR HOLDING 10:29:28 TODAY'S HEARING AND TO LOOK -- AND THINK OUR WITNESSES. 10:29:36 THE ALSO WANT TO THANK THE WITNESSESw3 THAT WILL JOIN US 10:29:39 THROUGHOUT THE DAY. THE NECESSITY OF TODAY'S HEARING 10:29:44 IS UNFORTUNATE AND IT IS A MANIFESTATION OF AN OVERSIGHT 10:29:47 PROCESS THE TEST OF THE CONSUMER. 10:29:53 CLEARLY, THE RECENT RECALLS HAVE NOT BEEN HANDLED WELL BY EITHER 10:29:59 THE GOVERNMENT AGENCIES OR BY TOYOTA. 10:30:07 AFTER THE SEVERAL TRAGIC ACCIDENTS AND THE RECALLS, THE 10:30:11 INVESTIGATIONS HAVE INTENSIFIED AND THROUGHOUT THAT PROCESS WE 10:30:15 HAVE HEARD A CHANGING STORY ON THE ROOT CAUSE OF THE PROBLEM. 10:30:20 I AM HOPING TODAY WILL SHED SOME LIGHT ON THAT SUBJECT. 10:30:25 WE HAVE HAD UNINTENDED ACCELERATION PROBLEMS THAT HAVE 10:30:28 BEEN LINKED TO 39 DEATHS. MANY WERE PREVENTABLE. 10:30:33 I THINK THE QUESTIONS THE NEED TO BE ANSWERED ARE WHEN WAS THE 10:30:38 PROBLEM FIRST IDENTIFIED PETS WITH TOYOTA TO SLOW TO REACT? 10:30:41 DOES EITHER TOYOTA OR THE NATIONAL HIGHWAY TRANSPORTATION 10:30:48 SAFETY MINISTRATION KNOW THE TRUE CAUSE? 10:30:52 THOUSANDS OF FAMILIES FLEEING CARS INTO DEALERSHIPS HOPING 10:30:56 THEIR CARS WILL BE FIXED. A LOOK FORWARD TO WORKING WITH 10:31:00 THE DEPARTMENT OF TRANSPORTATION AND MY COLLEAGUES ON THIS 10:31:03 COMMITTEE AS WE DIG DEEPER IN SEARCH OF THOSE ANSWERS. 10:31:07 >> THANK YOU. >> THANK YOU, MR. CHAIRMAN, 10:31:15 SECRETARY LAHOOD, AND ADMINISTRATION AND STRICKLAND. 10:31:21 I BELIEVE A FULL INVESTIGATION OF TOYOTA'S RESPONSE TO THESE 10:31:27 COMPLAINTS MUST BE CONDUCTED, BUT I'M MOSTLY INTERESTED IN HOW 10:31:32 OUR GOVERNMENT RESPONDED. THIS IS A BASIC MATTER OF PUBLIC 10:31:38 SAFETY AND PUBLIC TRUST. I KNOW THE TWO OF YOU WERE NOT 10:31:42 IN CHARGE BEEN UP TO THIS TRAGIC SITUATION. 10:31:46 REGARDLESS OF WHAT HAPPENED BEFORE, YOU ARE IN CHARGE OF 10:31:49 CLEANING IT UP I THINK THERE MAY BE A PROBLEM OF CULTURE HERE. 10:31:53 t(INDUSTRY EXECUTIVES CAN ROAE HALLS OF GOVERNMENT ON LIKE 10:32:01 CONSUMERS. THEY ARE NOT ON AN EQUAL PLAYING 10:32:02 FIELD. SOME SMALL BUSINESSES CANNOT 10:32:07 HAVE THE SAME ACCESS. IT WAS RECENTLY AT EXPOSED T 10:32:13 TOYOTA PREPARED AN INTERNAL SAVED MONEY BY HAVING A LIMITED 10:32:24 RECALL. THEY ALSO CLAIMED MILLIONS OF 10:32:28 DOLLARS IN SAVINGS BY DELAYING SAFETY REGULATIONS, AVOIDING 10:32:33 DEFECT INVESTIGATIONS, AND SLOWING DOWN OTHER INDUSTRY 10:32:35 REQUIREMENTS. THIS WAS ENTITLED "WINS FOR 10:32:43 TOYOTA." AMONG THOSE WHO LOST WERE SOME 10:32:50 FD5e )UUQ'TS. HE WAS DRIVING r HOME FRO' 10:32:57 AND AFTER TWO MILES OF HIGH- SPEEDw3 DRIVING, HE WAS ABLE TO 10:33:01 STOP THE CAR BY PUTTING IT INTO NEUTRAL. 10:33:03 HE SAYS THE FORMAT HAD NOTHING TO DO WITH IT. 10:33:06 A FEW WEEKS AFTER TH INCI, YMt>NXX.j P'4B=- [?1r xDEK"TAE 10:33:22 RECEIVED A RESPONSE AND THE AGENCY DENIED HIS COMPLAINT. 10:33:27 AT THAT TIME, THEY WERE EXPECTING TOYOTA'S EXPLANATION. 10:33:32 IT ALWAYS MAKES HIS INNOCENT WONDER WHAT IS GOING ON AND WHAT 10:33:35 HAPPENED BETWEEN THE SYSTEM AND NHTSA. 10:33:39 IT WAS LIKE A HOCKEY PUCK GOING BACK AND FORTH ON THE ICE. 10:33:46 TOYOTA WOULD PROMISE TO ANSWER, THE REGULATORS WOULD COMPLAIN 10:33:50 ABOUT NOT RECEIVING INFORMATION. IN THE END, ALMOST NOTHING WAS 10:33:54 DONE. THE PUCK NEVER GOT INTO THE NET. 10:33:58 PEOPLE DIED. I HAVE FAITH IN BOTH OF YOU, 10:34:02 w3 SHE WILL i]d8 GET TO TL m UESTION I AM MOSTe"A q w3xD Y3O 10:34:10 THE AGENCY SUFFERED BECAUSE OF LEADERSHIP TURNOVER, WITH THE 10:34:15 AGENCY RELUCTANT TO USE INVESTIGATING POWERS? 10:34:20 DID NHTSA HAVE ALL THE TOOLS IT NEEDED? 10:34:22 WAS THE ?0't;Wn RELATIONSHIP TY BETWEEN TOYOTA AND THE RESTqxD F 10:34:26 DUSTRY? THOSE ARE THE QUESTIONS THAT THE 10:34:32 AMERICAN PEOPLE DESERVE ANSWERS FOR AS THEY BELIEVED AND HAVEA 10:34:36 RIGHT TO BELIEVE THAT NHTSA IS THERE TO PROTECT THEM. 10:34:41 >> THANK YOU. V >> THANK YOU, MR. CHAIRMAN FOR, 10:34:46 IN THIS IMPORTANT HEARING w3w3. THIS IS AN ISSUE THAT HAS 10:34:54 GRABBED THE ATTENTION OF ALL AMERICANS AND MANY OTHERS 10:34:59 WORLDWIDE. IT CERTAINLY WARRANTS A THOROUGH 10:35:01 INVESTIGATION ONE OF THE MOST IMPORTANT ROLES IS INSURING THE 10:35:05 SAFETY OF AMERICAN MOTORISTS. THE TRAGIC ACCIDENT THAT TOOK 10:35:11 THE LIFE OF A HIGHWAY PATROLMAN BROUGHT NATIONAL ATTENTION TO A 10:35:17 PROBLEM OF UNINTENDED ACCELERATION IN CERTAIN 10:35:21 VEHICLES. TOYOTA HAS RECALLED MILLIONS OF 10:35:24 POTENTIALLY EFFECTED VEHICLES. THE COVERAGE HAS EXPANDED HEAD 10:35:29 THE PUBLIC IS UNDERSTANDABLY CONCERNED. 10:35:33 SINCE THAT TIME, TOYOTA HAS UNDERTAKEN EXTENSIVE OUTREACH 10:35:38 AND EVEN TAKEN THE UNUSUAL STEPS zVOF HALTING SALES AND PRODUCTIN 10:35:41 OF CERTAIN MODELS. IN PLACE AND DEALERSHIPS HAVE 10:35:45 BEEN WORKING TIRELESSLY TO FIX EFFECTED VEHICLES. 10:35:49 THEY ARE BEAT -- THEY ARE TO BE COMMENDED. 10:35:52 THERE ARE LINGERING QUESTIONS THAT NEED TO BE ADDRESSED SUCH 10:35:58 AS THE TIMELINESS OF THE RESPONSE, AND WHETHER A SOLUTION 10:36:02 HAS BEEN FOUND. WE WILL CONTINUE TO ASK THE 10:36:05 TOUGH QUESTIONS. I ALSO WANT TO EXPRESS THAT IT 10:36:08 IS IMPORTANT TO ALSO BE FAIR AND TO KEEP THE FACT IN PERSPECTIVE. 10:36:13 WE MUST NOT USE A DIFFERENT SET OF STANDARDS FOR ONE COMPANY 10:36:16 OVER THE OTHER. NHTSA AND THE DEPARTMENT OF 10:36:20 TRANSPORTATION HAVE BECOME VERY ACTIVE. 10:36:23 SECRETARY LAHOOD, MY FRIEND AND PUNT -- MY FRIEND AND COLLEAGUE 10:36:28 HAS BEEN DEDICATED TO EXAMINE THE PROBLEM AND THE POTENTIAL 10:36:35 FOR ELECTRONIC DEFECTS IN THE THROTTLE CONTROL. 10:36:39 WE HAVE AN OBLIGATION TO REVIEW WHAT NHTSA HAS BEEN DOING OVER 10:36:43 THE LAST SEVERAL YEARS AS THESE ACCIDENTS WERE BEING REPORTED, 10:36:47 AND WHY THEY SEEM TO LIMIT THE SCOPE OF THEIR REVIEW. 10:36:50 I r r BELIEVE THERE AREt( STILL SEVERAL OUTSTANDING t(f E 10:36:54 x HAVE AN t( OBLIGATION TOw3M ] om ov vC5 U. 10:36:57 THE MOST IMPORTANT IS HAS THE PROBLEM OF UNINTENDED 10:37:02 ACCELERATION THEN CORRECTLY IDENTIFIED? 10:37:07 NEXT, I BELIEVE CONSUMER EDUCATION IS AN IMPORTANT 10:37:11 COMPONENT TO ENSURE SAFETY. TOYOTA HAS UNDERTAKEN A MASSIVE 10:37:17 CAMPAIGN TO GET INTERMISSION TO CUSTOMERS. 10:37:20 I EMPLOYED -- I APPLAUD TOYOTA FOR THIS EFFORT. 10:37:25 DO CONSUMERS NOW HOW TO GET THEIR -- KNOW HOW TO GET THEIR 10:37:32 CARS REPAIRED? FINALLY, WE NEED TO REVIEW THE 10:37:37 PROCESSES THAT THEY'RE IN PLACE, AND SEE IF CHANGES NEED TO BE 10:37:40 MADE TO HELP ENSURE THAT OWNERS AND THOSE ON THE ROAD ARE SAFE. 10:37:44 THERE IS A LOT OF -- THERE IS A LOT AT STAKE, AND WE NEED TO GET 10:37:49 IT RIGHT. ALL AMERICANS NEED TO FEEL 10:37:52 CONFIDENT THEY ARE TRAVELING IN SAFE VEHICLES. 10:37:55 IT IS IN THE BEST INTEREST OF TOYOTA TO CONTINUE OPERATING AND 10:37:59 WORKING HARD ON THESE PROBLEMS THEY HAVE BEEN A GOOD PARTNER IN 10:38:05 STATES ACROSS THE COUNTRY. LET THE RECORD SHOW THAT WITH 10:38:10 THE DEBT IS INVESTING $1.3 BILLION TO BUILD A NEW PLANT IN 10:38:15 NORTHERN MISSISSIPPI. ALTHOUGH THE ECONOMIC DOWNTURN 10:38:18 HAS DELAYED THE OPENING, THE COMPANY HAS CONTINUED TO HONOR 10:38:22 ITS COMMITMENTS TO OUR STATE. AT THIS POINT, I WOULD LIKE TO 10:38:27 POINT OUT AND ASK THAT WE ENTERED INTO THE RECORD ONE OP- 10:38:32 ED WRITTEN BY A DEMOCRAT FROM MISSISSIPPI, THE EXECUTIVE 10:38:41 DIRECTOR OF THREE RIVERS PLANNING DISTRICT AND ANOTHER 10:38:45 HOTBED FROM "THE WASHINGTON POST." 10:39:01 HE SAYS AMONG OTHER THINGS, I WORRY THAT THERE HAS BEEN A RUSH 10:39:05 TO JUDGMENT. THE WAY THAT CONGRESS AND THE 10:39:10 OBAMA ADMINISTRATION RESPOND WILL HAVE REAL ECONOMIC 10:39:15 CONSEQUENCES. HE HOPES THAT THOSE INVOLVED 10:39:19 WILL "GIVE THE TOYOTA COMPANY THE SAME OPPORTUNITY TO DEAL 10:39:24 WITH ISSUES THAT THEY AFFORD OTHER AUTOMOBILE MANUFACTURERS 10:39:28 THAT EXPERIENCE RECALLS." S THAT IS THE PLACE INTO THE 10:39:31 RECORD. >> THEY BOTH WILL BE INCLUDED. 10:39:37 >> TO ENSURE THE PARTNERSHIP CONTINUES TO FLOURISH, WE MUST 10:39:41 WORK TO PREVENT THESE ISSUES IN THE FUTURE, WORKED DILIGENTLY TO 10:39:46 ENSURE THE VEHICLES TESTED, AND THE PUBLIC IS PROTECTED. 10:39:51 AT THE SAME TIME, WE NEED TO BE MINDFUL THAT THERE ARE THOUSANDS 10:39:56 OF AMERICAN JOBS AT STAKE. I BELIEVE THIS HEARING IS ONLY 10:40:00 THE FIRST STEP IN A PROCESS THAT MUST REQUIRE CAREFUL ANALYSIS. 10:40:07 THANK YOU TO OUR WITNESSES. >> THANK YOU. 10:40:15 >> ONCE AGAIN, CHAIRMAN OF ROCKEFELLER, YOU ARE FOCUSING ON 10:40:21 CONSUMER PROTECTION AND I THANK YOU FOR THAT. 10:40:26 THIS. IS ABOUT INSURING THE SAFETY OF 10:40:30 AMERICAN DRIVERS AND UNCOVERING WHY HUNDREDS OF INSTANCES OF 10:40:35 SUDDEN ACCELERATION OR OCCURRED FOR SO LONG AND KILLED, INJURED, 10:40:40 OR INCONVENIENCED SO MANY WITHOUT ADEQUATE WAS FRONTS FROM 10:40:45 TOYOTA OR SAFETY OFFICIALS. FOR YEARS, TOYOTA HAS ENJOY A 10:40:51 STELLAR REPUTATION IN AMERICA AND AROUND THE WORLD. 10:40:55 I OWN A TOYOTA PRIUS AND ADD TO THAT FOR YEARS WITH PLEASURE D 10:40:59 NO SAFETY PROBLEMS. "THE BUZZ" THE REALITY IS THAT 10:41:04 TOO MANY IF -- THE REALITY IS THAT TOO MANY VEHICLES HAVE NOT 10:41:09 BEEN SAFE. DOZENS OF PEOPLE HAVE DIED. 10:41:11 HUNDREDS OF PEOPLE HAVE BEEN HURT. 10:41:15 HARD-WORKING EMPLOYEES AT TOYOTA DEALERSHIPS IN MY HOME STATE OF 10:41:20 NEW MEXICO AND ACROSS THE COUNTRY NOW FACE A UNCERTAIN 10:41:26 FUTURE IN AN ALREADY UNCERTAIN ECONOMY. 10:41:28 WHILE ALL OF THIS WAS HAPPENING, TOYOTA CONTINUE TO PUT COMPANY 10:41:34 PROFITS ABOVE THE SAFETY OF THE AMERICAN PEOPLE. 10:41:37 THESE ARE THE AMERICAN PEOPLE WHO BOUGHT THEIR VEHICLES, 10:41:41 DEPENDED ON THE PRODUCT, AND EXPECTED TOYOTA TO INFORM THEM 10:41:46 IMMEDIATELY IF SOMETHING HAD GONE WRONG. 10:41:49 PLEADED DID NOT JUST FELL, THEY DID IT KNOWINGLY AND WITHOUT 10:41:54 REMORSE. THEY WERE BRAGGING ABOUT OVER 10:41:59 TWO AND A $55 MILLION IN SAFETY IN -- IN SAFETY THROUGH RECALLS 10:42:03 AVOIDED. TOYOTA IS NOT ALONE 10:42:07 . NHTSA IS ALSO TO BLAME. 10:42:09 SINCE 2003, THEY HAVE CONDUCTD MORE THAN TWO DOZEN 10:42:22 INVESTIGATIONS THAT RESULTED IN A LESS-THAN-ADEQUATE RECALL IN 10:42:27 2007. ONLY AFTER THE RELEASE OF THE 10:42:32 TERRIFYING 911 CALL THE SENATOR BOXER MENTIONED, AND THAT CRASH 10:42:38 WITH THE HIGH WEIGHT CONTROL -- HIGHWAY PATROL OFFICER, DID IT 10:42:47 SEEM THAT THAT'S A STEP UP. THAT RECALL RESULTED IN THE 10:42:50 COMPLETE RECALL. ALTHOUGH THE TOYOTA SAFETY 10:42:57 ISSUES HAVE BEEN IN HEADLINES FOR MONTHS, AND HEARINGS WERE 10:43:00 HELD LAST WEEK, MANY QUESTIONS REMAIN. 10:43:04 BY, FOR ONE, WOULD LIKE TO KNOW WHY THE SAFETY ISSUES WENT 10:43:10 UNCHECKED FOR SO LONG, WHAT STEPS TOYOTA IS TAKING TO ENSURE 10:43:14 THE SAFETY OF THOSE THAT RELY ON THEIR VEHICLES, AND FINALLY, 10:43:19 WHAT STEPS NHTSA IS QUICK TO TAKE TO ENSURE THIS NEVER 10:43:23 HAPPENS AGAIN. IT IS WONDERFUL TO SEE YOU HERE, 10:43:27 SECRETARY LAHOOD AND ADMINISTRATOR OF STRICKLAND. 10:43:34 >> THANK YOU. >> MR. CHAIRMAN, THANK YOU. 10:43:41 EVERYTHING THAT TIME I WANTED TO SAY THIS PROBABLY THEN SAID. 10:43:46 I WILL BE BRIEF AND AVOID BEIG REPETITIOUS. 10:43:51 I WANT TO REFLECT ON SOMETHING, IF I COULD. 10:43:55 IT WAS NOT THAT LONG AGO BUT MR. SECRETARY, I WAS IN YOUR 10:44:00 POSITION AS A MEMBER OF THE CABINET. 10:44:04 DURING THOSE YEARS, ONE OF MY RESPONSIBILITIES AS SECRETARY OF 10:44:09 AGRICULTURE WAS FOOD SAFETY JIMMY AREA OF MEAT, -- FOOD 10:44:17 SAFETY IN THE AREA OF NEED, AND OTHER ISSUES. 10:44:22 FOOD SAFETY ISSUES AROSE FROM TIME TO TIME. 10:44:25 I ALWAYS CONSIDERED THOSE TO BE THE GREATEST RISK AND GREATEST 10:44:30 CHALLENGE THAT WE FACED AND THE GREATEST RESPONSIBILITY. 10:44:35 EACH TIME THAT I DEALT WITH THE NATION, I HAVE TO TELL YOU THAT 10:44:40 WHAT I WONDERED ABOUT WAS WHAT ELSE IS OUT THERE? 10:44:48 YOU CANNOT KNOW WHAT YOU DO NOT KNOW. 10:44:53 AS WE CONDUCT THIS HEARING, I SUSPECTED TO BE EASY FOR US TO 10:44:58 DIG INTO THE DOCUMENTS, LOOKING BACK, I HAVE A HISTORY OF WHAT 10:45:02 HAS HAPPENED HERE. IT WILL BE RELATIVELY EASY TO 10:45:06 CONNECT THE DOTS ARE IN HINDSIGHT. 10:45:10 WHAT THAT DOES NOT POINT TO TELL US IS WHAT ELSE IS OUT THERE -- 10:45:16 WHAT OTHER COMPANIES MAY HAVE DONE, HAVE BRAGGED ABOUT HOW 10:45:24 THEY SOMEHOW EVADED BEING INVOLVED IN A RECALL. 10:45:30 AS YOU TESTIFY, I HOPE HE WILL SPEND SOME TIME TALKING TO US 10:45:35 ABOUT WHAT YOU ARE DOING TO ASSURE US THAT THERE IS NOT 10:45:40 ANYTHING ELSE OF THERE, THAT OUR VEHICLES ARE SAFE, AND THAT WHEN 10:45:45 IT IS BROUGHT TO THE ATTENTION OF THIS DEPARTMENT, IF THERE IS 10:45:49 A GOOD FOLLOW-UP. I ALSO WANT TO MENTION 10:45:54 SOMETHING. :GI3I WILL BE VERY BLUNT ABOUT . 10:45:58 THIS REALLY IRRITATED ME WHILE I WAS A SECRETARY OF OUR CULTURE. 10:46:06 ; 3 -- THE SECRETARY OF AGRICULTURE. 10:46:09 qt(I FIRMLY BELIEVE THERE IS E FOR THE JAPANESE GOVERNMENT 10:46:14 HERE TO STEP UP AND TO MAKE SE THAT WHAT THEY ARE SENDING TO 10:46:20 OUR BORDERS IS SAFE. THEY HAVE A RESPONSIBILITY. 10:46:26 I WORKED WITH THE JAPANESE FOR YEARS ON ISSUES RELATED TO 10:46:32 LIVESTOCK. WE FOUND ONE ANIMAL, THERE HAS 10:46:37 NEVER BEEN A CASE OF BSE IN THE UNITED STATES, YET TO THIS DAY, 10:46:47 THERE BORDER IS LARGELY CLOSED TO OUR PRODUCT. 10:46:52 I WONDER WHAT THE RESPONSE WOULD BE IN JAPAN IF I SUGGESTED THAT 10:46:56 BECAUSE PEOPLE HAVE DIED BECAUSE OF THE WAY THEY HAVE CONDUCTED 10:47:00 THEMSELVES, BUT UNTIL THE JAPANESE GOVERNMENT CAN ASSURE 10:47:06 US THAT ALL OF THE DEFECTS ARE OUT OF THESE VEHICLES, WE ARE 10:47:09 NOT WHEN TO EXPECT ANY VEHICLES FROM JAPAN. 10:47:14 THAT IS WHAT THEY DID WITH ONE OF OUR INDUSTRIES. 10:47:18 I START THIS HEARING VERY, VERY FRUSTRATED WITH EVERYTHING THAT 10:47:23 THIS HAPPENED. yMBUT NOTHING FOR CONSUMERS HAVE 10:47:26 BEEN TREATED RIGHT, NOT ONLYok Y WHAT HAS HAPPENED HERE IN THE 10:47:31 UNITED STATES GOVERNMENT, BUT WHAT HAS HAPPENED IN A 10:47:34 GOVERNMENT THAT HAS BEEN AN ALLY THROUGH THE YEARS BUT HAS NOT 10:47:39 TREATED AS FAIRLY IN TRADE ISSUES. 10:47:42 THANK YOU, MR. CHAIRMAN. >> THANK YOU. 10:47:46 >> THANK YOU. LET ME FIRST SAY, SECRETARY 10:47:51 LAHOOD AND ADMINISTRATORS STRICKLAND, -- IT IS ON? 10:48:02 IS THAT BETTER? MAYBE THERE IS A DEFECT. 10:48:11 I KNOW YOU ARE ALWAYS VERY DIRECT. 10:48:16 MY BIG ISSUE, NOT TO ECHO WHAT EVERYONE SAID HERE IS GOING TO 10:48:21 BE WHAT SYSTEMATIC CHANGES ARE NECESSARY TO ENSURE THE SAFETY 10:48:29 OF PRINCE YOU MOVE FORWARD ON OUR THEIR AND THAT YOU HAVE THE 10:48:35 -- INJURED THE SAFETY EFFORTS YOU MOVE FORWARD ON OUR THERE 10:48:41 AND YOU HAVE THE RESOURCES. WHAT IS FORD AND HOW WE CHANGE 10:48:46 THE SYSTEM AND THEN PROVE IT? THAT IS WHAT I'M LOOKING FOR, 10:48:51 SYSTEMATIC CHANGES. IT IS A LITTLE UNIQUE. 10:48:58 WHEN FOLKS IN THE RURAL ALASKA BARRAULT -- BY A VEHICLE, THE 10:49:04 BARGE IT UP. I OWN A TOYOTA AND I DROVE FROM 10:49:13 ALASKA TO WASHINGTON, D.C., AND IT IS GREAT. 10:49:17 IT IS A VERY GOOD CARD -- IT'S A VERY GOOD CAR. 10:49:23 WHEN THEY SHIP IT IN A BARGE, HOW TO THEY GET IT FIXED? 10:49:29 THERE WILL BE STATES WHERE E DEALER MAY BE MILES AND MILES 10:49:33 AWAY. HOW DO THEY MAKE THAT 10:49:36 CONNECTION? IN OUR STATE, THEY WILL HAVE O 10:49:42 FIGURE OUT HOW TO GET IT TAKEN CARE OF. 10:49:47 TO ok m qok kqVaR # 1ddE TESTIMONY rdhN TODAY, BUK 10:49:56 w3FOP3 g7.a nb y: TT WE NEED TO w3 DO f ANDE 10:50:05 THERE WAS A PROBLEM IN DELIVERY OF INFORMATION TO THE PUBLIC AND 10:50:11 TO MAKE SURE THEY ARE UPHOLDING THE BEST VEHICLE QUALITY 10:50:15 POSSIBLE. THANK YOU FOR BEING HERE. 10:50:18 >> THANK YOU. SECRETARY LAHOOD, ADMINISTRATOR 10:50:26 STRICKLAND, THANK YOU FOR YOUR PATIENCE. 10:50:29 YOU'VE GOT ALL OF THE STATEMENTS THIS MORNING. 10:50:34 THAT MEANS THAT BY DEFINITION IN THE AFTERNOON, THERE WILL BE 10:50:38 FEWER STATEMENTS. THEY SET THE TONE FOR WHAT WE 10:50:42 WANT TO ASK AND I LOOK FORWARD TO HEARING YOU, SIR, AND YOU ARE 10:50:49 ACCOMPANIED BY DAVID STRICKLAD TO IS THE ADMINISTRATOR OF 10:50:55 NHTSA. PLEASE PROCEED. 10:50:58 >> MR. CHAIRMAN, THANK YOU FOR YOUR LEADERSHIP ON SAFETY AND 10:51:03 YOUR COURTESY IN ARRANGING THIS MEETING THAT IS CONVENIENT FOR 10:51:10 BOTH YOUR COMMITTEE AND THOSE OF US AT THE DEPARTMENT OF 10:51:13 TRANSPORTATION. EVER SINCE I WAS WARNED IN 13 10:51:18 MONTHS AGO, I HAVE SAID THAT SAFETY IS THE DEPARTMENT'S #1 10:51:23 PRIORITY. I BELIEVE WE HAVE DEMONSTRATED 10:51:25 THAT COMMITMENT TIME AND TIME AGAIN. 10:51:29 WHEN THE TERRIBLE CRASH OF WASHINGTON'S METRO SYSTEM 10:51:33 CLAIMED NINE LIVES, WE QUICKLY INTRODUCE LEGISLATION TO GIVE 10:51:39 FEDERAL OVERSIGHT OF THE NATION PUTS THE TRANSIT SYSTEM. 10:51:44 THE FLIGHT CRASHED IN BUFFALO, WE LEARNED RIGHT AWAY WITH MANY 10:51:50 OF THE PROBLEMS WERE. WE BEGAN WORKING WITH THE 10:51:56 AVIATION INDUSTRY IMMEDIATELY TO ENHANCE AIRLINE SAFETY AND 10:52:03 PILOT TRICK -- PILOT TRAINING. THIS SPRING, THE FAA WILL 10:52:07 CONTEST -- WILL ISSUE A NEW RULE TO COMBAT PILOT FATIGUE. 10:52:12 ONE OF THE HALLMARKS OF MY TIME HAS BEEN OUR WORK ON DESTRUCTIVE 10:52:18 DRIVING FOR ALL OF YOU WITH SELF PHONES AND BLACKBERRIES, AND 10:52:24 OTHER ELECTRONIC DEVICES, I AM ON A RAMPAGE. 10:52:30 IT IS A MENACE TO SOCIETY. WE HAVE EXERCISED OUR AUTHORITY 10:52:35 TO BAN TRUCKDRIVERS FROM TEXTING WHILE DRIVING. 10:52:40 NOW, TOYOTA. THE ISSUE IS SERIOUS, AND WE ARE 10:52:45 TREATING IT SERIOUSLY. THE THREE RECALLS ARE AMONG THE 10:52:49 LARGEST IN AUTOMOBILE HISTORY, AFFECTING MORE THAN 6 MILLION 10:52:53 PEOPLE IN THIS COUNTRY. I WOULD LIKE TO SPEAK TO 10:52:57 CONSUMERS. IF YOU NOTICE YOUR GAS PEDAL OR 10:53:00 BREAK IS NOT RESPONDING AS IT NORMALLY WOULD, CONTACT YOUR 10:53:04 TOYOTA DEALER RIGHT AWAY. THE RECENT RECALL INVOLVES 10:53:10 ENTRAPMENT BY FLOOR MATS. IT IS IMPORTANT TO TAKE YOUR 10:53:18 FORMATS OUT OF YOUR VEHICLE UNTIL THE PROBLEM HAS BEEN TAKEN 10:53:21 CARE OF. SECONDLY, ACCELERATOR PEDALS 10:53:27 STICKING. IF THE PANEL IS HARDER TO 10:53:31 PREDICT IF THE GAS PEDAL IS HARDER TO PRESS, CONTACT YOUR 10:53:40 TOYOTA DEALER IMMEDIATELY. IF YOUR GUEST PANEL BECOME STUCK 10:53:43 FOR ANY REASON, STEADILY APPLY THE BRAKE, PUT THE CAR IN 10:53:48 NEUTRAL, BRING IT TO A STOP, AND CALL YOUR DESLER. 10:53:53 FINALLY, THE TOYOTA PREVIOUS FOR MODEL YEAR 2010, -- TOYOTA 10:54:01 PRIUS, FOR MODEL YEAR 2010, CONTACT YOUR VEHICLE. 10:54:10 NHTSA HAS THE MOST ACTIVE INVESTIGATIONS IN THE WORLD. 10:54:15 ITS JOB IS TO INVESTIGATE COMPLAINTS AND LOOK FOR DEFECTS. 10:54:20 IT RECEIVES MORE THAN 30,000 COMPLAINTS FROM CONSUMERS EVERY 10:54:24 YEAR AND REUSE OF EVERY ONE OF THOSE COMPLAINTS QUICKLY. 10:54:28 WE DO NOT IGNORE ANY OF THEM. WE EXAMINE THEM ALL, LOOKING AT 10:54:32 ALL OF THEM VERY CAREFULLY. jTT @C1TH+DR"MXx>BlqU'vfzf gUe, 10:54:42 INVESTIGATION HAVE RESULTED 524 RECALLS INVOLVING 23.5 MILLION 10:54:46 VEHICLES. 20% OF THOSE INVOLVE FOREIGN WE 10:54:51 VEHICLES WERE UP 80% WERE DOMESTIC. 10:54:56 THERE ARE CURRENTLY 44 OPENED DEFECT INVESTIGATIONS, FIVE OF 10:55:01 WHICH INVOLVE TOYOTA. EVERY STEP OFt( THE WAY, NHTSA 10:55:06 OFFICIALS HAVE PUSHED TOYOTA TO TAKE CORRECTIVE ACTION SO THAT 10:55:10 CONSUMERS WOULD BE SAFE. UNHAPPY, WITH THE RESPONSE, OUR 10:55:17 RETURNS, THEY FLEW TO JAPAN IN DECEMBER OF 2009 TO CLARIFY TO 10:55:26 TOYOTA MANAGEMENT THAT LEGAL OBLIGATIONS HAVE THEM 10:55:33 IDENTIFYING DEFECTS. OUR DEPUTY ADMINISTRATOR TOLD 10:55:40 THE PRESIDENT OF TOYOTA NORTH AMERICA, IN NO UNCERTAIN TERMS, 10:55:46 WE EXPECT PROMPT ACTION. TOYOTA PUBLICLY ANNOUNCED THE 10:55:51 RECALL TWO DAYS LATER. I PERSONALLY TALKED TO AKIO 10:55:56 TOYODA AND EMPHASIZE THAT THIS IS VERY SERIOUS. 10:56:02 NHTSA HAS PRESSED HARD TO EXPEDITE THESE FIXES. 10:56:06 IF NHTSA HAD RESISTED A RECALL, THIS WOULD HAVE CONSUMED AN 10:56:10 ENORMOUS AMOUNT OF TIME AND IN EFFECT, EXTENDED THE. 10:56:15 IN WHICH OWNERS WERE DIRECTLY EFFECTED. 10:56:21 THE AGENCY AVOIDED A LENGTHY INVESTIGATION THAT WOULD HAVE 10:56:25 DELAYED FIX'S FOR ONE YEAR OR MORE. 10:56:27 LAST YEAR, I ANNOUNCED IT WE WERE INVESTIGATING WHETHER A 10:56:36 POLITICAL OF THE PROTECTIONS. WE HAVE BEST TOYOTA TO TURN OVER 10:56:39 A WIDE RANGE OF DOCUMENTS. THIS WILL BE ONE OF THE MOST 10:56:43 COMPREHENSIVE REVIEWS OF DOCUMENTS THAT WILL SHOW US WHEN 10:56:46 AND HOW THEY LEARNED OF THE SAFETY PROBLEMS. 10:56:50 NHTSA WILL CONTINUE TO MAKE SURE TOYOTA IS DOING ALL THAT IT HAS 10:56:54 PROMISED. WE'LL CONTINUE TO INVESTIGATE 10:56:56 ALL POSSIBLE CAUSES OF UNINTENDED ACCELERATION. 10:57:01 THE RECALLS ARE IMPORTANT STEPS, BUT THEY DID NOT ANSWER A 10:57:04 -- THEY DID NOT ANSWER EVERY QUESTION. 10:57:12 ALTHOUGH WE'RE NOT AWARE OF ISSUES PROVEN TO BE CUT BY SUCH 10:57:19 INCIDENCES, NHTSA IS DOING A THOROUGH REVIEW. 10:57:24 WE HAVE HEARD FROM ENOUGH MEMBERS OF CONGRESS THAT THEY 10:57:29 THINK IT IS A PROBLEM. WE WILL LOOK INTO AND REVIEW THE 10:57:32 ELECTRONICS. IF NHTSA FINDS A PROBLEM, WE 10:57:35 WILL MAKE SURE IT IS RESOLVED. RECENTLY, I MET WITH THE 10:57:40 PRESIDENT OF TOYOTA AND TOLD THEM THAT SAFETY IS THE TOP 10:57:42 ISSUE FOR US AND THAT IT MUST BE FOR TOYOTA AS WELL. 10:57:46 HE ASSURED ME THAT THEY TAKE CONCERN SAY -- SERIOUSLY AND 10:57:50 THAT THEY'RE WORKING HARD. THERE IS A REASON WHY WE 10:57:56 INVESTIGATE SAFETY. I LISTENED TO THE 911 TAPE OF 10:58:01 THAT FAMILY'S HEROIN LAST MOMENTS. 10:58:04 I MET WITH THE FAMILY LAST WEEK WHEN THEY WERE IN WASHINGTON. 10:58:11 I OFFERED SYMPATHY AND OUR COMMITMENT TO THEM THAT THIS 10:58:15 WOULD NOT HAPPEN TO ANOTHER FAMILY. 10:58:18 IT WAS A TERRIBLE TRAGEDY, AND I HOPE THAT NO OTHER FAMILY HAS TO 10:58:22 END WITH THIS. AGAIN, MR. CHAIRMAN, I THANK 10:58:28 YOU FOR THE OPPORTUNITY TO -- FOR THE OPPORTUNITY TO APPEAR. 10:58:32 >> THANK YOU. WHEN THE AMERICAN CONSUMERS AND 10:58:37 REGULATORS FOR NOT A SERIOUS ISSUE LIKE THE SUDDEN 10:58:40 ACCELERATION ISSUE, TOYOTA EXECUTIVES IN AMERICA DID NOT 10:58:45 SEEM TO HAVE ANY AUTHORITY TO TAKE ACTION ON THEIR OWN. 10:58:49 IT ALL HAS TO GO BACK TO JAPAN. THAT MIGHT BE A MATTER OF 10:58:55 CORPORATE OR JAPANESE CULTURE, BUT IT IS THE FACT. 10:58:58 IT WAS PRETTY OBVIOUS WHAT THE PRESIDENT OF TOYOTA NORTH 10:59:05 AMERICA, MR. JIM LENTZ, SAID HE DID NOT HAVE THE POWER TO ORDER 10:59:11 RECALLS IN THE UNITED STATES, ONLY JAPAN DID.

House Energy and Commerce Committee holds a hearing with Eddie and Rhonda Smith, Toyota car victims, James Lentz, president and chief operating officer of Toyota USA, Ray LaHood, and Sean Kane, the president, Safety Research Strategies Inc. 16:00:00 THERE ARE A NUMBER OF DIFFERENT REASONS FOR SURGES. 16:00:01 IT COULD BE A HIGH IDLE UP THAT TAKES PLACE SOMETIMES WHEN AIR 16:00:05 CONDITIONING KICKS ON, AS AN EXAMPLE. 16:00:07 >> BUT REPROGRAMMING THE COMPUTER WOULD NOT BE A 16:00:10 MECHANICAL FIX, WOULD IT? >> NO. 16:00:12 >> AND THE OTHER REALITY OF THAT NOTICE IS THAT THESE 2002 TO 16:00:16 2006 CAMRYS WHICH WERE THE SUBJECT OF THAT TECHNICAL 16:00:20 SERVICE BULLETIN, YOU NOT ADDRESSING THE PROBLEM OF THE 16:00:24 BRAKE OVERRIDE RETROFIT WITH THOSE MODELS, ARE YOU? 16:00:27 >> CAMRY, I WOULD HAVE TO LOOK AND SEE WHAT YEAR IT GOES BACK 16:00:31 TO. BUT WE ARE GOING BACK IN THE 16:00:32 CASE OF CAMRY. >> ALL RIGHT. 16:00:34 >> NOW ONE OF THE THINGS YOU ALSO MENTIONED IN YOUR STATEMENT 16:00:37 WAS THAT IN DECEMBER YOU ASKED EXPONENT, A WORLD CLASS 16:00:41 ENGINEERING AND SCIENTIFIC CONSULTING FIRM, TO CONDUCT A 16:00:44 COMPREHENSIVE INDEPENDENT ANALYSIS OF YOUR ELECTRONIC 16:00:48 THROTTLE CONTROL SYSTEM WITH AN UNLIMITED BUDGET. 16:00:50 SO LET'S TALK JUST A LITTLE BIT ABOUT THAT. 16:00:54 YOUR COUNSEL WHO IS WITH YOU TODAY IS WITH A VERY WELL-KNOWN 16:00:57 FIRM THAT DEFENDS NOT JUST TOYOTA BUT OTHER AUTO 16:01:01 MANUFACTURERS IN PRODUCT LIABILITY AND CRASH WORTHINESS 16:01:05 CASES ALL OVER THE COUNTRY. YOU AGREE WITH THAT, CORRECT? 16:01:08 >> YES. >> I AM IN NO WAY IMPUGNING THEM 16:01:11 FOR THEIR ROLE, BUT I FIND IT VERY ODD THAT WHEN YOU WERE 16:01:15 PRESENTED WITH THIS CHALLENGE OF GETTING TO THE ROOT OF THIS 16:01:17 PROBLEM YOU WENT TO YOUR DEFENSE FIRM TO GO MAKE THE CONTACT TO 16:01:21 ARRANGE FOR THIS INDEPENDENT TESTING. 16:01:24 >> AGAIN, OUR LEGAL STAFF PUT TOGETHER THE REQUEST. 16:01:27 I CAN TELL YOU THAT THAT REPORT IN ITS ENTIRETY IS GOING TO BE 16:01:30 MADE PUBLIC. >> AND WE LOOK FORWARD TO IT, 16:01:32 SIR. >> SO IF THERE ARE ISSUES IN IT, 16:01:34 IT'S GOING TO COME OUT. >> LET'S TALK A LITTLE BIT ABOUT 16:01:37 THE COMPANY THAT YOU RETAINED, EXPONENT, BECAUSE THEY ARE A 16:01:42 SUCCESSOR CORPORATION TO A COMPANY CALLED FAILURE ANALYSIS 16:01:45 ASSOCIATES, WHICH HAS DONE EXTENSIVE WORK FOR NOT JUST 16:01:48 TOYOTA BUT ALL THE BIG AUTO MANUFACTURERS AND THE MOTORCYCLE 16:01:55 MANUFACTURERS ON NOT ONLY FAILURE ANALYSIS. 16:02:01 >> I'M NOT SURE ABOUT THE EXPERT WITNESS BUT THEY'VE WORKED FOR 16:02:04 OTHER AUTOMOTIVES IN VEHICLE STABILITY CONTROL AND OTHER 16:02:08 THINGS THAT HAVE BEEN DEVELOPED THAT ARE GREAT FOR THE INDUSTRY. 16:02:10 >> ONE OF THE THINGS I CAN TELL YOU IS THAT I HAVE A COPY OF A 16:02:14 DEPOSITION THAT THEIR CHIEF TECHNICAL OFFICER, ROGER 16:02:19 McCarthy, TRIED IN 1998. IN THAT DEPOSITION HE TESTIFIED 16:02:23 THAT FAILURE ANALYSIS ASSOCIATE, THEN KNOWN AS ACCENTURE, 16:02:27 RECEIVED BETWEEN $30 MILLION AND $40 MILLION A YEAR FOR THE WORK 16:02:30 THEY DID FOR THE AUTO INDUSTRY. WERE YOU AWARE OF THAT? 16:02:33 >> NO. >> ISN'T IT TRUE THAT TOYOTA HAS 16:02:36 PAID THEM OVER A MILLION DOLLARS IN THE PAST FOR THE WORK THAT 16:02:39 THEY'VE DONE? >> EXPONENT? 16:02:41 >> YES. >> I DO NOT KNOW. 16:02:42 >> WOULD YOU BE WILLING TO PROVIDE US WITH DOCUMENTATION OF 16:02:46 WHAT TOYOTA HAS PAID TO ACCENTURE? 16:02:49 NOT JUST IN RELATION WITH THIS STUDY THAT'S BEING DONE OR IN 16:02:53 RELATIONSHIP WITH MR. GILBERT'S FOLLOW-UP ANALYSIS, BUT OVER THE 16:02:57 PERIOD OF TIME THAT THESE RECALLS THAT ARE BEING 16:03:00 CONSIDERED OR HAVE BEEN ISSUED HAVE BEEN PERFORMED. 16:03:02 CAN YOU DO THAT? > 16:03:12 >>. >> I'M SORRY. 16:03:13 COULD YOU REPEAT THE QUESTION. >> I WOULD MAKE A FORMAL REQUEST 16:03:16 THAT WE GET AS MUCH INFORMATION AS WE CAN FROM TOYOTA 16:03:20 INTERNATIONAL, TOYOTA NORTH AMERICA, DOCUMENTING THE 16:03:24 FINANCIAL RELATIONSHIP BETWEEN THEIR COMPANY AND ACCENTURE OR 16:03:28 ITS PREDECESSOR, FAILURE ANALYSIS ASSOCIATE, NOT JUST IN 16:03:33 RELATIONSHIP WITH THE STUDY THAT WAS DONE AS HAS BEEN THE 16:03:35 SUBJECT -- >> THAT'S FINE. 16:03:36 WE'LL DO THAT. >> NOW ONE OF THE THINGS THAT 16:03:39 YOU TALKED ABOUT WAS THE FACT THAT YOU WERE PRESENT DURING 16:03:43 SOME TESTING THAT WAS DONE AT ACCENTURE. 16:03:46 >> EXPONENT. >> EXPONENT, YES. 16:03:50 >> IS THAT SOMETHING YOU WERE PART OF WHEN THERE WAS FILMING 16:03:53 THAT WAS DONE TO DOCUMENT THE TESTING? 16:03:56 >> NO. I JUST WANTED TO GO SEE HOW THEY 16:03:59 TEST. I HAVE NEVER BEEN IN A VEHICLE 16:04:02 THAT'S GONE INTO FAIL SAFE MODE. SO I WANTED TO UNDERSTAND WHAT 16:04:05 IT FEELS LIKE FROM THE CONSUMER'S STANDPOINT. 16:04:09 WHAT FAIL SAFE FEELS LIKE AS YOU ARE DRIVING DOWN THE ROAD. 16:04:11 >> WERE YOU INVOLVED IN ANY WAY IN THE ANALYSIS IN TERMS OF 16:04:17 DEFINING THE SCOPE OF THAT PROJECT OR HOW THE RESULTS WOULD 16:04:20 BE SUBMITTED? >> NO. 16:04:22 THE ONLY PORTION I WAS INVOLVED IN WAS THAT WHEN THAT RESEARCH 16:04:27 BECOMES AVAILABLE IN ITS ENTIRETY IT WOULD BE MADE 16:04:30 PUBLIC. IT WOULD BE MADE AVAILABLE TO 16:04:32 CONGRESS AND NHTSA. >> AND DID TOYOTA MAKE A DIRECT 16:04:36 RELATIONSHIP FOR THE PERFORMANCE OF THOSE SERVICE WITH EXPONENT 16:04:39 OR WAS THAT SOMETHING HANDLED BY BOWMAN AND BROOK? 16:04:42 >> I DON'T KNOW. >> BECAUSE WHEN YOU INDICATE IN 16:04:46 YOUR STATEMENT THAT YOU REQUESTED THEM TO DO A 16:04:49 COMPREHENSIVE INDEPENDENT ANALYSIS WITH AN UNLIMITED 16:04:52 BUDGET, I'M JUST WONDERING WHETHER THERE ARE DOCUMENTS THAT 16:04:56 WOULD DEFINE THE SCOPE OF THAT REQUEST AND THE TERMS UNDER 16:05:00 WHICH EXPONENT WOULD BE COMPENSATED FOR WHAT THEY WERE 16:05:04 PERFORMING. ARE YOU AWARE OF THAT? 16:05:06 >> I'M NOT AWARE OF IT. >> THEN I WOULD ALSO REQUEST 16:05:09 THAT, MR. CHAIRMAN, AND I YIELD BACK. 16:05:11 >> THANK YOU. THAT CONCLUDES QUESTIONS BY 16:05:13 MEMBERS OF THE SUBCOMMITTEE. WE'LL NOW GO TO QUESTIONS FROM 16:05:16 MEMBERS OF THE FULL COMMITTEE. >> AS FAR AS I KNOW, ACCENTURE 16:05:23 HAS NOT BEEN HIRED BY YOU TO DO ANY ENGINEERING OR TESTING, HAVE 16:05:29 THEY? >> EXPONENT. 16:05:30 >> EXPONENT. ACCENT SURLIKE AN ACCOUNTING 16:05:34 FINANCIAL FIRM, RIGHT? >> YES. 16:05:35 >> YOU GOT -- YOU ARE ASKED QUESTIONS BY MY DEMOCRAT 16:05:39 COLLEAGUE ABOUT ACCENTURE. I WANT TO MAKE SURE FOR THE 16:05:42 RECORD IT'S BEEN CLEARED. WITH REGARD TO THE FIRM THAT YOU 16:05:45 HIRED, EXPONENT, AS FAR AS I'M AWARE, EVEN THE UNITED STATES 16:05:50 GOVERNMENT TURNED TO THIS FIRM TO HELP US COME TO THE SOLUTIONS 16:05:54 AS TO WHY WE LOST THE SHUTTLE "COLUMBIA." 16:05:57 IS THAT CORRECT? >> YES. 16:05:59 >> SO THIS IS NOT A FLY BY NIGHT FIRM. 16:06:02 THIS IS SOMEONE WHO IS ONE OF THE BEST IN THE UNITED STATES 16:06:05 THAT IS -- WHEN IT COMES TO PROBLEM SOLVING. 16:06:07 >> YES. >> WE WANT TO DEFINE THE BEST. 16:06:10 AND AGAIN THERE WILL BE ANOTHER REVIEW OF THE ECTS DONE BY THIS 16:06:15 INDEPENDENT STUDY GROUP. THEY MAY CHOOSE TO GO WITH THEM. 16:06:18 THEY MAY CHOOSE SOMEONE ELSE. >> WITH REGARD TO SOME TESTIMONY 16:06:21 THAT YOU -- I WROTE THIS DOWN BECAUSE IT WAS BOTHERSOME TO ME. 16:06:26 YOU SAID THAT WITH REGARD TO TESTING THAT WAS DONE LAST NIGHT 16:06:29 WITH REGARD TO THE METHODOLOGY USED BY DR. GILBERT ON THE FIRST 16:06:34 PANEL, YOU SAID, QUOTE, IT'S NOT A REAL WORLD SCENARIO. 16:06:39 SO CAN YOU EXPLAIN THAT A LITTLE BIT FURTHER? 16:06:42 IN OTHER WORDS, HE DID TESTIFY THAT HE USED MANIPULATION. 16:06:46 HE TOLD ME HE DID NOT CUT THREE WIRES. 16:06:49 BUT WHEN YOU SAY THAT THERE WAS A METHODOLOGY THAT'S NOT A REAL 16:06:53 WORLD SCENARIO, HELP ME UNDERSTAND. 16:06:57 >> WELL, -- YEAH, I THINK HE SAID TAPPED IN, WHICH IS HOW HE 16:07:09 GETS INTO THE -- AGAIN, THIS HAPPENED JUST 12 16:07:12 HOURS AGO. SO I DON'T WANT TO ATTACK HIM 16:07:15 WITHOUT KNOWING EXACTLY WHAT HIS PROCESS WAS. 16:07:18 BUT MY UNDERSTANDING IS HE TOOK THE PLUG OFF THE BACK OF THE 16:07:26 ACCELERATOR PEDAL. THERE ARE SIX WIRES ON THE BACK 16:07:27 OF THAT. TWO THAT GO TO THE SENSOR, TWO 16:07:30 THAT GO TO THE POWER AND TWO THAT GO TO THE GROUND. 16:07:34 HE TAPPED INTO THE TWO THAT GO TO THE SENSOR AND BASICALLY 16:07:39 THROUGH SOME DEVICE TIED THOSE TWO TOGETHER. 16:07:43 AND THEN TIED THE -- ONE OF THE POWER WIRES INTO ANOTHER ONE. 16:07:47 SO, AGAIN IT JUST DOESN'T SEEM AS IF THAT IS SOMETHING THAT MAY 16:07:53 NECESSARILY HAPPEN IN THE REAL WORLD. 16:07:59 EXPONENT HAS TESTED WHAT HAPPENS IF YOU LOSE GROUND. 16:08:01 WHAT HAPPENS IF THE SENSORS BREAK DOWN. 16:08:02 BUT IN A VERY DIFFERENT WAY. SO I JUST WOULD LIKE TO 16:08:08 UNDERSTAND HIS METHODOLOGY AND MAKE SURE THAT IT'S NOT THE 16:08:10 TESTING PARADIGM THAT'S CAUSING THIS. 16:08:14 >> SO WHEN ABC SHOWED THIS, IN ORDER TO HAVE THESE RESULTS, 16:08:19 YOUR TESTIMONY WOULD BE THAT DR. GILBERT HAD TO INDUCE FAULT BY 16:08:26 MANIPULATION TO CREATE AND GENERATE AN ARTIFICIAL VAULTAGE 16:08:29 FOR THE RESULT HE WAS SEEKING. >> YES. 16:08:32 AND GO AROUND THE SENSOR. >> SO THAT NORMALLY ISN'T GOING 16:08:34 TO HAPPEN AS I'M DRIVING ONE OF YOUR PRODUCTS DOWN THE ROAD. 16:08:38 WOULD THAT BE CORRECT? >> I BELIEVE SO. 16:08:39 I'M NOT AN ENGINEER. THAT'S WHAT I NEED TO STUDY 16:08:42 THROUGH EXPONENT BECAUSE THEY DID THE SAME STUDY. 16:08:46 >> ALL RIGHT. EARLIER I MADE THE COMMENT 16:08:48 ABOUT -- I THINK THE AMERICAN PUBLIC, WE HAVE SEEN WHAT 16:08:52 HAPPENS WHEN NBC "DATELINE" STAGED A CRASH BETWEEN TWO 16:08:56 TRUCKS TO CLAIM GENERAL MOTORS FUEL TANK DESIGN CAUSED FIRE 16:08:59 CRASH -- CRASH TEST ON TELEVISION. 16:09:01 AND WE WERE ALL PRETTY UPSET OVER IT. 16:09:03 SO NOW WHAT WE HAVE IS A REPEAT SCENARIO WITH REGARD TO ABC, 16:09:07 ALSO USING A MANIPULATION, NOT USING A REAL WORLD SCENARIO. 16:09:10 SO THAT TYPE OF -- THAT TYPE OF THING CAN BE LEFT TO THE 16:09:14 CREDIBILITY OF THE VIEWER AND THE AMERICAN PUBLIC. 16:09:16 NOW I'M GOING TO SHIFT. THE REASON I'M GOING TO SHIFT IS 16:09:22 LET'S GO BACK TO "COLUMBIA." WHEN THERE IS A CRASH IN 16:09:27 AMERICA, AND WE HAVE A CONCERN, WE GO TO THE PRODUCT. 16:09:32 SO EXPONENT LOOKS AT "COLUMBIA." TRIES TO GATHER AS MUCH 16:09:35 INFORMATION AS THEY POSSIBLY CAN. 16:09:39 DATAA AND WHAT'S LEFT. >> RIGHT. 16:09:40 >> WHEN THERE IS AN AIRLINE THAT CRASHES, NTSB WILL GO IN AND TRY 16:09:45 TO RE-CREATE AND REBUILD THAT AIRCRAFT. 16:09:49 WHEN I LOOK AT WHAT EXPONENT IS DOING, AND I LOOK AT THE REPORT 16:09:53 AND I LOOK AT THE THOUSANDS OF VEHICLES THEY ARE LOOKING AT, 16:09:57 WHAT BOTHERS ME IS WHY -- WHY WOULDN'T YOU, WHEN AN AUTOMOBILE 16:10:02 THAT HAS BEEN IDENTIFIED AS THIS SUDDEN UNINTENDED ACCELERATION, 16:10:08 WHY ISN'T THAT PRODUCT PULLED ASIDE AND RIPPED APART SO YOU 16:10:13 CAN UNDERSTAND WHAT IS EXACTLY GOING ON. 16:10:16 THOSE ARE THE THOUSAND ONES THAT IF I WERE IN YOUR SEAT, THAT I 16:10:18 WOULD BE GOING AFTER AND APPLYING THE GREATEST MINDS OF 16:10:24 THE WORLD TO UNDERSTAND. >> IN MANY CASES, ONE OF THE 16:10:28 FIELD TECHNICAL SPECIALISTS OR ONE OF THE QUALITY SPECIALISTS, 16:10:31 THEY DO GO OUT. AND IF THERE IS A COMPONENT 16:10:34 FAILURE, THEY WOULD TAKE THAT COMPONENT OFF AND SEND IT TO THE 16:10:37 QUALITY SIDE TO SEE WHAT'S GOING ON. 16:10:39 BUT IN THE CASE OF THE ELECTRONIC THROTTLE, IF THEY 16:10:45 DON'T GET A CODE READING OUT THAT SHOWS A FAILURE AND THEY 16:10:48 CAN'T RE-CREATE IT, IT'S VERY, VERY DIFFICULT TO BE ABLE TO DO 16:10:51 THAT. NOW THEY MAY TAKE THE THROTTLE 16:10:54 BODY OFF IF IT'S CRACKED OR IF IT'S SOMEHOW DEFECTIVE. 16:10:58 THEY'LL TAKE A PEDAL OFF IF IT'S DEFECTIVE. 16:11:01 IF AN ECU IS DEFECTIVE, THEY'LL TAKE THAT OFF. 16:11:04 IN MANY CASES, THAT'S WHAT'S SO FRUSTRATING ABOUT UNINTENDED 16:11:08 ACCELERATION IS IT'S VERY, VERY DIFFICULT TO DUPLICATE. 16:11:12 UNLESS THEY CAN DUPLICATE IT, THEY HAVE NO WAY OF KNOWING 16:11:16 EXACTLY WHAT'S TAKEN PLACE. >> THANK YOU, MR. CHAIRMAN. 16:11:19 >> MR. GONZALEZ FOR QUESTIONS. >> THANK YOU VERY MUCH, MR. 16:11:26 CHAIRMAN. MR. LENTZ IN MY LIMITED VIEW OF 16:11:29 THINGS YOU HOSTHE CONSUMER PROTECTED? 16:11:32 HOW IS THE BEST INTEREST E PROMOTED? 16:11:34 I'VE JUST CONCLUDED THAT, ONE, IT'S THE MANUFACTURER'S OWN 16:11:38 MORAL BEHAVIOR, FIRST FD FOREMOST. 16:11:40 THEN WE GO INTO THE GOVERNMENTAL REGULATORY OVERSIGHT. 16:11:44 AND THEN WE HAVE OUR JUSTICE SYSTEM. 16:11:48 I'M A GREAT BELIEVE IN THE CIVIL JUSTICE SYSTEM. 16:11:51 THE PROBLEM, THAT'S ALWAYS AFTER THE FACT, WAY AFTER THE FACT. 16:11:53 SO I'M LOOKING AT THE MANUFACTURER'S MORAL BEHAVIOR, 16:11:58 AND I'M LOOKING AT THE CAPABILITIES, PROFICIENCY AND 16:12:02 COMPETENCY OF THE REGULATORY SCHEME THAT CONGRESS HAS IN 16:12:05 PLACE. WHEN ANY OF THIS BREAKS DOWN, 16:12:08 CONGRESS WILL MOVE FORWARD. AND YOU HEARD MR. WAXMAN SAY, 16:12:11 LOOK. WE MAY NEED LEGISLATION. 16:12:12 AND THAT'S A PROCESS THAT WE'RE ENGAGING IN AT THIS TIME. 16:12:15 IT'S GOING TO GET HOT AND HEAVY AND YOU'RE GOING TO SEE ALL THE 16:12:18 DIFFERENT INTEREST. LAST WEEK I WAS ON THE RADIO. 16:12:20 WHEN I SIMPLY SAID LET US NOT RUSH TO JUDGMENT. 16:12:23 THAT GOES WHETHER IT'S TOYOTA, WHETHER IT'S GM, FORD. 16:12:26 I DON'T CARE WHO IT IS. AN INDIVIDUAL OR A CORPORATION. 16:12:29 THE INTERVIEWER THEN SAID, ARE YOU APOLOGIZING FOR TOYOTA? 16:12:33 SO WE'VE GOT THAT ISSUE. NOW WE HAVE MEMBERS OF CONGRESS 16:12:37 THAT MAY BE A LITTLE AGGRESSIVE IN FULFILLING THEIR DUTIES. 16:12:42 YOU HAVE LETTERS GOING OUT THAT ARE SAYING IT DOES SOMETIMES 16:12:45 APPEAR, HOWEVER, THAT THE NEGATIVE NEWS IS BEING 16:12:48 ENCOURAGED BY PLAINTIFFS TRIAL LAWYERS, UNION ACTIVISTS AND 16:12:51 THOSE INTERESTED IN CUTTING INTO TOYOTA'S MARKETSHARE. 16:12:55 THAT'S THE ENVIRONMENT. IT'S NOT HEALTHY. 16:12:56 IT'S NOT GOOD. AND ALL THESE REASONS, WHICH ARE 16:12:59 TOTALLY WRONG AND RIDICULOUS ARE BEING ATTRIBUTED TO THOSE 16:13:02 INDIVIDUALS SIMPLY TRYING TO DO THEIR JOBS AS MEMBERS OF 16:13:05 CONGRESS. SO I'M HOPING THIS PROCESS WILL 16:13:06 BE FAIR. BUT IN THE MEANTIME, THERE IS A 16:13:09 RUSH TO JUDGMENT. THIS IS THE DANGER. 16:13:11 NOT JUST TO TOYOTA BUT EVERYBODY THAT WILL BE SIMILARLY SITUATED 16:13:15 SOME TIME IN THEIR LIVES, WHETHER AS AN INDIVIDUAL, A 16:13:18 COMPANY OR A CORPORATION. MONTHS FROM NOW WE MAY DISCOVER 16:13:26 THAT IT WASN'T ELECTRONIC AND ALL OF THE ACTION TAKEN WAS 16:13:29 TIMELY AND DILIGENT. BUT IT REALLY WON'T MATTER. 16:13:34 WE HAVE AN OLD SAYING. AND I SAID THIS THE OTHER DAY. 16:13:38 EVERYONE WILL REMEMBER THE ACCUSATION. 16:13:41 NO ONE WILL REMEMBER THE EXONERATION. 16:13:45 AND FOR A BUSINESS IN THE UNITED STATES, PEOPLE ARE MAKING 16:13:50 DECISIONS TODAY ON WHAT CAR THEY'RE GOING TO BUY. 16:13:53 BY THE TIME WE FIGURE OUT WHAT THE TRUTH MAY BE, THAT DECISION 16:13:56 HAS BEEN MADE. AND I'M GOING TO TELL YOU THAT I 16:13:58 BELIEVE WHAT'S GOING ON TODAY WILL AFFECT THAT DECISION. 16:14:01 THAT'S WHY WE ALL HAVE TO BE SO CAREFUL IN HOW WE DO THIS AND 16:14:04 THAT WE'RE FAIR TO ALL PARTIES, WHETHER IT'S GOING TO BE THE 16:14:08 CONSUMER, THE SMITHS OR EVEN TOYOTA. 16:14:10 BUT TO BE FAIR TO EVERYONE. I WANT TO KNOW WHAT YOU CAN TELL 16:14:14 TOYOTA OWNERS TODAY REGARDING THE SAFETY OF THEIR VEHICLES. 16:14:20 >> WHAT I CAN TELL THEM, AND I'M NOT GOING TO GO THROUGH THE 16:14:24 DETAIL OF ALL OF MY FAMILY DRIVE PRODUCTS. 16:14:27 I WOULD NOT HAVE MY LOVED ONES DRIVING PRODUCTS, RECALLED OR 16:14:31 NOT IF I DIDN'T FEEL THEY WERE SAFE. 16:14:34 SO THAT'S NUMBER ONE. NUMBER TWO IS WE HAVE PROCESSES 16:14:39 IN PLACE, NEW PROCESSES IN PLACE, THAT ARE GOING TO ENSURE 16:14:43 A LOT MORE TRANSPARENCY AND RESPONSIBILITY TO MAKE SURE WE 16:14:47 MAKE FASTER DECISIONS THAT ARE THE RIGHT DECISIONS. 16:14:51 EVERYBODY HAS DEFECTS. EVYB GOING TO HAVE 16:14:55 RECALLS. BUT HOW QUICKLY WE REACT TO 16:14:58 PROTECT THAT CONSUMER, HOW MUCH THE CONSUMER SEES US STANDING 16:15:02 BEHIND THEIR PRODUCT, THAT'S WHAT'S MOST IMPORTANT. 16:15:05 I CAN TELL YOU THE OTHER THING. WE HAVE A LOT OF DEALERS SITTING 16:15:09 BEHIND ME. THE WAY WE START TO BUILD TRUST 16:15:11 IN OUR BRAND IS THROUGH OUR DEALERS BECAUSE OUR DEALERS ARE 16:15:15 THE TRUE CONTACT WITH THE CUSTOMER. 16:15:17 AND THEY ARE DOING A TREMENDOUS JOB IN TAKING CARE OF THESE 16:15:22 SITUATIONS. I MEAN, ALMOST 800,000 CUSTOMERS 16:15:25 ALREADY TAKING CARE OF IN ABOUT 20 DAYS IS AN AMAZING NUMBER. 16:15:30 AND YOU'LL HEAR FROM THE DEALERS THAT THE CUSTOMERS ARE 16:15:34 UNDERSTANDING. SURE, THERE ARE ONE OR TWO 16:15:36 CUSTOMERS IN EACH DEALERSHIP THAT ARE PRETTY UPSET AT WHAT'S 16:15:39 GOING ON. BUT FOR THE MOST PART, OUR LOYAL 16:15:42 CUSTOMERS KNOW FOR THE LAST 50 YEARS THAT WE'VE STOOD BEHIND 16:15:45 OUR PRODUCT. WE'VE DONE THE RIGHT THING FOR 16:15:48 THEM. >> LET ME ASK YOU THIS BECAUSE I 16:15:50 THINK YOU TOUCHED ON IT. I HAVE 35 SECONDS, BUT QUICKLY. 16:15:54 YOU DRIVE TOYOTAS. YOUR FAMILY DRIVES TOYOTAS. 16:15:56 EVERYBODY YOU CARE ABOUT DRIVES TOYOTAS. 16:15:58 ARE YOU GOING TO QUIT DRIVING TOYOTAS? 16:16:01 >> NO SIRKS. >> AND YOU HEARD THE MEMBERS OF 16:16:03 CONGRESS ON THIS COMMITTEE DRIVE T 16:16:06 TOYOTAS. I'M NOT GOING TO ASK THEM 16:16:07 WHETHER THEY'RE GOING TO QUIT DRIVING THEIR TOYOTAS. 16:16:10 MY SUSPICION IS THEY WILL NOT. SO I THINK MAYBE THAT'S THE 16:16:13 MESSAGE THAT COMES FROM THIS HEARING TODAY. 16:16:14 WE'RE GOING TO BE AGGRESSIVE, VIGILANT, DILIGENT. 16:16:17 WE'RE GOING TO GET TO THE BOTTOM OF THIS. 16:16:19 THE QUESTION IS TO WHAT DEGREE CAN WE PROTECT THE AMERICAN 16:16:22 CONSUMER AND I BELIEVE THAT WE'RE GOING TO MEASURE UP TO 16:16:25 THAT DUTY AND RESPONSIBILITY THAT WE OWE THEM. 16:16:27 AND AGAIN, THANK YOU FOR YOUR TESTIMONY. 16:16:29 >> THANK YOU. AND I AGREE. 16:16:30 IT STARTS WITH US. >> THANK YOU, MR. GONZALEZ MR. 16:16:39 McNIERNEY. >> THANK YOU MR. CHAIRMAN. 16:16:42 I APPRECIATE YOU ALLOWING ME TO ADDRESS THE HEARING. 16:16:45 THANK YOU FOR ATTENDING TODAY AND TAKE SOMETHING TOUGH 16:16:48 QUESTIONS. ADDRESSING THE SAFETY ISSUES 16:16:50 WE'RE DISCUSSING TODAY IS VITALLY IMPORTANT, BUT I'D LIKE 16:16:53 TO FOCUS MY QUESTIONS ON A RELATED MATTER THAT I BELIEVE 16:16:57 REFLECTS ON TOYOTA'S DISREGARD FOR ITS LOYAL CUSTOMERS AND ITS 16:17:01 LOYAL EMPLOYEES. I'M REFERRING TO THE DECISION 16:17:04 RECENTLY TO SHUT DOWN OPERATIONS AT NUMI PLANT IN FREMONT, 16:17:09 CALIFORNIA, WHICH WILL COST US ABOUT 35,000 JOBS IN THE STATE 16:17:13 OF CALIFORNIA, AND I DON'T BELIEVE THAT TOYOTA HAS DONE 16:17:16 NEARLY ENOUGH TO PREVENT THIS LOSS OF JOBS. 16:17:18 I HAVE AN OPENING STATEMENT THAT I'D LIKE TO INCLUDE IN THE 16:17:21 RECORD, MR. CHAIRMAN. >> WILL BE, WITHOUT OBJECTION. 16:17:25 >> MR. LENTZ, TOYOTA IS CURRENTLY EXPERIENCING MAJOR 16:17:31 PUBLIC RELATION PROBLEMS AND THE PUBLIC CONCERN ABOUT SAFETY 16:17:35 FAILURES IS GOING TO HURT YOUR BOTTOM LINE. 16:17:38 CALIFORNIA IS ONE OF YOUR BIGGEST MARKETS, AND IT'S 16:17:41 OBVIOUS THAT KEEPING NUMI OPEN WILL HELP REBUILD YOUR IMAGE. 16:17:45 WOULDN'T THAT BE BENEFICIAL TO TOYOTA? 16:17:47 >> OUR IMAGE IS BENEFICIAL, BUT SPECIFICALLY, NUMI? 16:17:53 I THINK WE HAVE TO BE CLEAR THAT TOYOTA IS NOT SHUTTING DOWN 16:17:58 NUMI. NUMI IS SHUTTING DOWN NUMI. 16:18:00 IT'S A SEPARATE CORPORATION THAT WAS 50% OWNED BY TOYOTA AND 16:18:06 OWNED BY GENERAL MOTORS. AND WHEN GENERAL MOTORS MOVED 16:18:13 INTO BANKRUPTCY AND THE NEW PARTNER BECAME MOTORS HOLDING -- 16:18:16 LIQUIDATION HOLDING, IT WAS GENERAL MOTORS ABANDONING NUMI 16:18:20 THAT SET THIS IN PLAY. THAT'S THE TRUTH OF THE MATTER. 16:18:24 WHEN THEY PULLED OUT AND THEY PULLED OUT 30% OF THEIR VOLUME, 16:18:29 THAT PLANT WAS DIFFICULT TO BECOME COMMERCIALLY VIABLE. 16:18:32 IT'S A LONG WAY FROM OUR SUPPLY LINES. 16:18:36 WE SUPPLY -- >> IT'S A LONG WAY FROM YOUR 16:18:39 CUSTOMER LINES. I UNDERSTAND THE PONTIAC VIBE 16:18:41 WAS ONLY ABOUT 20% OF PRODUCTION AT NUM NI 2008 WITH TOYOTA 16:18:46 VEHICLES MAKING UP THE REST OF THAT PRODUCTION. 16:18:49 SURELY TOYOTA COULD MODIFY ITS OPERATIONS TO ACCOUNT FOR A 20% 16:18:53 DROP IN PRODUCTION. IT SEEMS TO ME THAT YOU ARE 16:18:57 PUTTING NUMI OUT OF BUSINESS BECAUSE OF ANTIPATHY TOWARD WEST 16:19:00 COAST WORKERS. NOT OUT OF NECESSITY. 16:19:04 UNFORTUNATELY, TOYOTA HASN'T DEMONSTRATED THAT MADE ANY 16:19:07 MEANINGFUL EFFORT TO EXPLORE POSSIBILITIES TO KEEP NUMI OPEN. 16:19:12 I WAS ASKING YOU, DO YOU EXPECT CALIFORNIANS TO BELIEVE IN THE 16:19:17 BRIEF TIME BETWEEN GM'S ANNOUNCEMENT AND YOUR DECISION 16:19:19 TO CLOSE, WERE YOU ABLE TO DEFINITIVELY DETERMINE THAT IT 16:19:21 WAS IMPOSSIBLE TO MAINTAIN OPERATIONS AT NUMI? 16:19:24 >> YES, IT'S NOT FINANCIALLY VIABLE TO DO. 16:19:26 IT'S A LONG WAY FROM OUR LOGISTICS LINES. 16:19:30 THE VOLUME, 20% IS A PRETTY BIG NUMBER. 16:19:33 I MEAN, CALIFORNIA SELLS ABOUT 13% TO 14% OF THE NATION'S 16:19:38 SALES. THAT'S A PLANT THAT HAS CAPACITY 16:19:41 FOR ALMOST 400,000 VEHICLES THAT'S BUILDING AROUND 300 AT 16:19:47 THE MOST. I MEAN, YOU'VE GOT TO REMEMBER 16:19:49 THAT WHEN THIS INDUSTRY COLLAPSED AFTER LEHMAN, WE HAD A 16:19:53 40% COLLAPSE FROM THE PEAK OF THE MARKETPLACE IN 20, 2001 TO 16:19:59 WHERE WE ENDED LAST YEAR. THERE WAS TREMENDOUS 16:20:02 OVERCAPACITY ALL ACROSS THE UNITED STATES. 16:20:05 AND IT'S NOT SOMETHING YOU TAKE LIGHTLY CLOSING A PLANT. 16:20:07 YOU LOOK AT THE WORKERS BEHIND ME. 16:20:12 WHEN THAT MARKET COLLAPSED AND WE HAD 100,000 UNASSIGNED 16:20:16 VEHICLES SITTING IN OUR PORTS THAT WE DIDN'T HAVE DEALERS TO 16:20:19 BE ABLE TO ACCEPT BECAUSE INVENTORIES WERE SO HIGH, WE 16:20:22 DIDN'T LAY THESE PEOPLE OFF. WE KEPT THESE PEOPLE WORKING 16:20:27 BECAUSE WE KNOW THAT THEY ARE A HUGE ASSET FOR US. 16:20:31 SO WE DON'T TAKE CLOSING A PLANT OR NUMI DOESN'T TAKE CLOSING A 16:20:35 PLANT LIGHTLY. WE BELIEVE IN OUR WORKERS. 16:20:38 THEY'VE DONE A TREMENDOUS JOB IN GETTING US THROUGH ALL OF THIS. 16:20:43 SO NUMI IS, UNFORTUNATELY, WE'RE GOING TO STOP ORDERING PRODUCT 16:20:46 AT THE END OF MARCH. AND WE WILL DO WHAT WE CAN TO 16:20:50 TRY TO HELP THE WORKERS THROUGH TRANSITION. 16:20:53 AND HOPEFULLY, I DON'T KNOW IF ANOTHER ASSEMBLY CAN GO IN THERE 16:20:57 OR THEY CAN REDEVELOP THE PROPERTY AND CREATE JOBS THROUGH 16:21:01 THE REDEVELOPMENT AND WHATEVER ELSE GOES IN THERE. 16:21:03 >> I'M REALLY THINKING OF YOUR BENEFIT AS WELL AS OURS. 16:21:06 I MEAN, I'LL LEAVE YOU WITH THIS PARTING THOUGHT. 16:21:09 YOU ARE HAVING A PUBLIC RELATIONS NIGHTMARE RIGHT NOW. 16:21:14 AND IT MAY BENEFIT YOU A SLIGHT AMOUNT TO CLOSE A PLANT LIKE 16:21:19 THAT, BUT YOU'RE GOING TO FACE THE PUBLIC BACKLASH ON THE WEST 16:21:22 COAST. ON THE OTHER HAND IF YOU WORK 16:21:24 WITH US TO KEEP THAT OPEN, IT'S GOING TO BE A REAL PLUS FOR YOUR 16:21:27 PUBLIC RELATIONS ISSUES. I JUST ASK YOU TO KEEP THAT IN 16:21:30 MIND AS YOU MOVE FORWARD. >> JUST UNDERSTAND AS WELL, 16:21:33 WE'RE GOING TO DO WHATEVER WE CAN TO HELP THROUGH THAT 16:21:36 TRANSITION. WE'RE NOT LEGALLY OBLIGATED, BUT 16:21:38 WE ARE GOING TO THROW MONEY INTO IT TO HELP THROUGH THIS. 16:21:42 I JUST WISH OUR PARTNER OF 25 YEARS WOULD STEP UP AND DO THE 16:21:47 SAME. >> THAT'S ALL. 16:21:49 >> THANK YOU. LET ME JUST ASK YOU A FEW 16:21:53 QUESTIONS TO CLARIFY OUR RECORD. THERE'S BEEN A LOT OF TESTIMONY 16:21:56 HERE AND A LOT OF QUESTIONS. SO JUST MAKE SURE I'M CORRECT 16:21:59 HERE. THE ONLY INDEPENDENT ANALYSIS 16:22:00 THAT YOU HAVE HAD, WHEN YOU SPOKE ON TODAY SHOW YOU SAID YOU 16:22:05 HAVE INDEPENDENT ANALYSIS ON YOUR PROBLEMS WITH THE SUDDEN 16:22:07 ACCELERATION HAS BEEN EXPONENT. >> YES. 16:22:10 TO MY KNOWLEDGE. >> AND YOU WERE REFERRING TO 16:22:13 THAT REPORT OF EXPONENT, RIGHT? >> NOW NTSA HAS ALWAYS DONE 16:22:18 STUDIES IN THE PAST, BUT I DON'T KNOW HOW ROBUST THEY ARE. 16:22:21 >> YOU DON'T HAVE ANY KNOWLEDGE OF ANY INDEPENDENT STUDIES THEY 16:22:25 DID? >> NO, NOT TO MY KNOWLEDGE. 16:22:26 >> AND THERE'S BEEN NO INDEPENDENT ELECTRONIC THROTTLE 16:22:31 CONTROL SYSTEM STUDIES? >> NOT OF TOYOTA. 16:22:34 THERE MAY BE INDUSTRYWIDE. I DON'T KNOW. 16:22:36 >> BUT FOR YOUR -- >> YES, TO MY KNOWLEDGE. 16:22:38 >> AFTER THIS SITUATION. AND WITH DR. GILBERT HERE, HE'S 16:22:44 COMING UP WITH THIS AND APPARENTLY YOUR EXPONENT'S 16:22:47 ENGINEER HAS BEEN ABLE TO DUPLICATE IT. 16:22:49 IS IT FAIR TO SAY THEN WHEN THEY DUPLICATED IT THEY GOT THE SAME 16:22:53 RESULT AS DR. GILBERT THAT THE FAIL SAFE SYSTEM DID NOT RECEIVE 16:22:58 THE SIGNAL TO ENACT? SO IN OTHER WORDS, THE FAILSAFE 16:23:01 SYSTEM, WHETHER IT'S AN OVERRIDE BY ELECTRIC, HOWEVER WAS 16:23:05 HAPPENING, THE DIAGNOSTIC CODES DID NOT KICK IN TO PUT IN THE 16:23:08 FAIL SAFE SYSTEM TO GET THAT BREAKING GOING? 16:23:10 >> I BELIEVE WHAT HE'S DONE IS GONE AROUND -- DESIGNED A WAY TO 16:23:13 GO AROUND THE OVERRIDE SYSTEM. >> SURE. 16:23:15 >> SO WHETHER IT CAN HAPPEN OR NOT -- 16:23:17 >> WE DON'T KNOW THE SOURCE OF IT, BUT IT'S A BOOK END, AS THEY 16:23:21 SAID, TO START THE RESEARCH. >> YES. 16:23:23 AND THAT COULD BE OF VALUE TO TOYOTA? 16:23:25 >> SURELY. >> YOU MENTIONED THE S.W.A.T. 16:23:28 TEAM YOU'LL HAVE AT THE END OF MARCH. 16:23:30 >> YES. >> AND IN 24 HOURS THEY'LL HAVE 16:23:35 INFORMATION BEYOND SITE. MR. DINGELL ASKED AND A COUPLE 16:23:38 OF QUESTIONS HAVE BEEN ABOUT THIS EVENT DATA RECORDER. 16:23:41 >> YES. >> THE EVENT DATA RECORDER TELLS 16:23:43 YOU WHAT HAPPENS FIVE SECONDS BEFORE AN ACCIDENT AND ONE 16:23:47 SECOND AFTER. SPECIFIC REQUESTS HAVE BEEN MADE 16:23:51 ON THE AUBURN, NEW YORK, CRASH WHICH WAS A 2010 CAMRY. 16:23:58 THAT ERB HAS BEEN SEIZED. DO YOU KNOW WHERE IT IS? 16:24:02 WHY ISN'T THAT INFORMATION MADE AVAILABLE TO NTSA OR ANYONE 16:24:09 ELSE? >> IF I CAN GET INFORMATION ON 16:24:11 THAT CRASH. >> HOW ABOUT THE SOUTHLAKE TEXAS 16:24:14 ONE. 208 TOYOTA AVALON. 16:24:17 HAPPENED ON DECEMBER 26th. SAME THING. 16:24:20 IT SAYS CONDUCT A SITE VISIT ON 1/12 WHERE THEY PULLED THE BLACK 16:24:24 BOX OUT IF YOU WILL. WHERE IS THE RESULTS ON THAT? 16:24:27 >> AND THEY PULLED THE PEDAL OFF. 16:24:29 I DON'T KNOW. NHTSA WAS ALSO DOWN THERE WITH 16:24:32 OUR ENGINEERS BUT I DON'T KNOW SPECIFICALLY WHAT THE RESULT 16:24:35 WAS. >> OR HOW ABOUT MR. JEFF PINSKY 16:24:38 FROM MINNESOTA. HE'S HAD A 2007 LEXUS ES 350 AND 16:24:43 HAD PROBLEMS WITH IT AND REQUESTED REPEATEDLY TO GIVE HIM 16:24:46 THE INFORMATION OFF THE BLACK BOX. 16:24:48 HE'S ALWAYS BEEN DENIED. IF WE'RE GOING TO HAVE THIS 16:24:51 S.W.A.T. TEAM AND WE'RE GOING TO BE MORE TRANSPARENT AND BRING 16:24:54 FORTH THIS INFORMATION WHY NOT ON THESE FATAL CRASHES, 16:24:57 ESPECIALLY THESE ONES I MENTIONED, WHY NOT DISCLOSE WHAT 16:25:00 HAPPENED ON THAT BLACK BOX? >> I THINK RIGHT NOW THE ISSUE 16:25:03 IS THERE'S ONE TOOL IN THE ENTIRE UNITED STATES, AND I 16:25:06 BELIEVE IT'S STILL IN THE PROTOTYPE STAGES. 16:25:09 SO THE FINAL PRODUCTION TOOLS WE WON'T START SEEING HERE UNTIL 16:25:14 APRIL. SO -- 16:25:15 >> BUT STANDARDS FOR A BLACK BOX WERE DEVELOPED IN 2006 BY NHTSA 16:25:19 THAT EVERYBODY HAS TO HAVE STARTING 2012 AND 2013, CORRECT? 16:25:23 >> YES. >> IF WE HAVE STANDARDS IN 2006 16:25:25 YOU ARE STILL TRYING TO DEVELOP A PROTOTYPE. 16:25:28 >> THAT'S MY UNDERSTANDING. >> SO THE INFORMATION OFF THIS 16:25:31 BLACK BOX THEN, IF I WANTED TO GET THE INFORMATION IF THERE'S 16:25:33 NO MECHANISM IN THE UNITED STATES, IT HAS TO GO TO JAPAN TO 16:25:36 GET THE INFORMATION? >> CORRECT. 16:25:37 CORRECT. IT IS A UNIQUE MECHANISM FOR OUR 16:25:40 BLACK BOX. >> AND THIS DEFECT COMMITTEE, 16:25:44 U.S. MAY HAVE A REPRESENTATIVE ON IT BUT DECISIONS ARE STILL 16:25:46 GOING TO BE MADE IN JAPAN? >> WELL, THERE WILL BE -- THE 16:25:51 PROCESS OF MAKING A DEFECT DECISION IS THERE'S A GENERAL 16:25:54 MANAGER OF THE QUALITY GROUP THAT HAS A COMMITTEE WITH A 16:25:56 NUMBER OF DIFFERENT ENGINEERS AND EVERYONE ELSE. 16:26:00 THAT HAS ALWAYS BEEN IN JAPAN WITH JAPANESE. 16:26:03 THAT COMMITTEE NOW IS GOING TO HAVE PEOPLE THAT WILL BE SEATED 16:26:09 ON THAT FROM OTHER PARTS OF THE REGIONS AROUND THE WORLD. 16:26:12 >> SURE. >> UNITED STATES FOR CERTAIN, I 16:26:14 DON'T KNOW. I'M ASSUMING EUROPE WILL 16:26:16 PROBABLY BE THERE AS WELL. SO THEY WILL BE PART OF -- THEY 16:26:19 WILL BE TIED INTO ALL THE INFORMATION AVAILABLE INTO THE 16:26:23 DECISION PROCESS AND WE WILL HAVE THE ABILITY TO APPEAL THAT 16:26:28 IF WE DON'T BELIEVE IN IT. >> YOU HAVE INPUT BUT DECISION 16:26:31 WILL STILL BE MADE IN JAPAN. >> THE INPUT WILL BE MADE BUT 16:26:34 WE'LL HAVE THE ABILITY TO APPEAL THAT DECISION WE DO NOT HAVE 16:26:38 TODAY. >> ON THE BLACK BOX, WHETHER WR 16:26:40 IS THAT DATA STORED? >> PARDON? 16:26:42 >> IF I GET A BLACK BOX OUT OF THE SOUTHLAKE, TEXAS, ACCIDENT, 16:26:46 WHERE WOULD THAT DATA BE SCORED? WOULD THAT HAVE TO GO TO JAPAN 16:26:49 TO GET DOWNLOADED? >> IF WE HAVE THE SCAN TOOL, 16:26:52 ONCE THESE TOOLS ARE AVAILABLE -- 16:26:54 >> RIGHT. BUT RIGHT NOW BECAUSE YOU DON'T 16:26:56 HAVE THE SCAN TOOLS. >> I DON'T KNOW IF JAPAN HAS 16:26:59 TOOLS OR NOT. IF WE'RE IN PROTOTYPE STAGE, I'M 16:27:02 ASSUMING IT'S A GLOBAL PROTOTYPE STAGE. 16:27:04 I DON'T KNOW THAT FOR CERTAIN. BUT I DO KNOW IN APRIL WE'RE 16:27:08 SLATED TO RECEIVE ABOUT 100 OF THESE. 16:27:11 >> ALL RIGHT. THAT WILL BE IN APRIL. 16:27:12 OKAY. IF YOU RECEIVE -- YOU SAID YOU 16:27:14 RECEIVE PERSONALLY 20 TO 25 COMPLAINTS A WEEK. 16:27:17 ANY ON UNINTENDED ACCELERATIONS. >> I'VE GOT TO TELL YOU IN THE 16:27:21 LAST THREE YEARS, I HAVE SEEN THEM ON SURGES. 16:27:25 BUT I DON'T RECALL ANYONE THAT WAS ON AN UNINTENDED INCIDENT. 16:27:32 >> COULD YOU PROVIDE US AN EXAMPLE OF SOME OF THOSE SURGES 16:27:35 THAT YOU PERSONALLY HANDLED? >> SURE. 16:27:37 >> OKAY. >> SURE. 16:27:39 >> MR. BURGESS, DID YOU HAVE ANY QUESTIONS? 16:27:43 >> I THINK IT'S ALREADY BEEN ADDRESSED BUT WOULD LIKE FOR YOU 16:27:46 OR TOYOTA TO PROVIDE THE COMMITTEE YOUR ANALYSIS OR 16:27:51 EXPONENT'S ANALYSIS OF WHEN THEY DO THE GILBERT TESTING, THE 16:27:56 RETESTING ON THE GILBERT THING. I JUST ECHO ABOUT THE BLACK BOX. 16:27:59 SOUTHLAKE IS RIGHT OUTSIDE OF MY DISTRICT. 16:28:02 VERY TRAGIC ACCIDENT RIGHT AFTER CHRISTMAS WHERE A CAR WENT 16:28:04 THROUGH AN INTERSECTION AND ENDED UP UPSIDE DOWN IN A POND 16:28:07 AND ALL THE OCCUPANTS DIED. SOME QUESTION AS TO WHETHER OR 16:28:10 NOT THERE MAY HAVE BEEN A MEDICAL EMERGENCY INVOLVED IN 16:28:13 THAT. BUT I THING BLACK BOX, IN 16:28:14 ADDITION TO THE OTHER PHYSICAL EVIDENCE, THE BRAKE PADS AND 16:28:17 THAT SORT OF THING WILL BE VERY INSTRUCTIVE FOR YOUR GROUP AND, 16:28:20 OF COURSE, INSTRUCTIVE FOR US AS WELL. 16:28:25 SO AS THIS INFORMATION ON THESE LOOK BACKS, IF YOU GO OUT AND 16:28:28 GET THE CAR FROM TENNESSEE, AND YOUR ENGINEERS COME UP WITH A 16:28:33 DECISION ON THIS, I JUST THINK IT WOULD BE VERY USEFUL THAT 16:28:37 THIS COMMITTEE WOULD HAVE THAT INFORMATION AS EARLY AS POSSIBLE 16:28:42 AFTER YOU GET THAT. AND, HEAVEN HELP US IF THERE'S 16:28:50 AN UNCOMMANDED ACCELERATION. BUT GET THAT CAR. 16:28:53 SOMEBODY HAS TO LOOK AT THAT CAR AND FIGURE OUT WHAT'S GOING ON. 16:28:56 APPRECIATE IT. >> WE'RE ABOUT TO WRAP UP. 16:28:58 I SEE MR. ENGEL IS HERE. D 16:29:05 DO YOU HAVE A QUESTION OF THIS WITNESS? 16:29:06 >> THANK YOU MR. CHAIRMAN. I THINK A LOT OF THE QUESTIONS 16:29:09 HAVE ALREADY BEEN ASKED. BUT WHEN I WAS ASKED BY THE 16:29:12 MEDIA YESTERDAY WHAT QUESTION WAS I GOING TO ASK, I SAID THAT 16:29:17 I WOULD ASK WHAT DID YOU KNOW AND WHEN DID YOU KNOW IT AND 16:29:20 WHAT DO YOU STILL KNOW THAT WE DON'T KNOW? 16:29:25 AND I LISTENED TO THE HEARING. ALL I CAN SAY IS THAT I HOPE YOU 16:29:34 CAN APPRECIATE THAT WE ARE VERY SKEPTICAL BECAUSE IT CERTAINLY 16:29:42 SEEMS IF YOU JUST LOOK AT THE CHAIN OF EVENTS THAT THERE WAS 16:29:45 AN ATTEMPT TO KIND OF SWEEP EVERYTHING UNDER THE RUG. 16:29:51 AND I'M STILL NOT SURE THAT THE QUESTION HAS BEEN REASONABLY 16:29:57 ANSWERED IN TERMS OF, YOU KNOW, YOU TALK ABOUT THESE SIX 16:30:00 VEHICLES THAT YOU TESTED. BUT WHY WOULD NOT YOUR FIRST 16:30:06 INCLINATION BE TO TEST THE VEHICLES THAT ACCELERATED. 16:30:10 WHEN I HEARD MRS. SMITH EARLIER ON, THE FIRST PANEL, AND SHE 16:30:14 TALKED ABOUT HOW IT JUST WENT 100 MILES AN HOUR AND SHE 16:30:20 COULDN'T DO ANYTHING TO STOP IT, WOULDN'T IT HAVE JUST BEEN 16:30:23 LOGICAL TO TAKE THAT CAR AND OTHERS LIKE THAT AND JUST RIP IT 16:30:28 APART? I KNOW MR. BARTON ASKED YOU 16:30:30 EARLIER. BUT I'M NOT SURE I'M SATISFIED 16:30:32 WITH YOUR ANSWER. >> AGAIN, I DON'T KNOW THE 16:30:35 SPECIFICS, BUT IT SOUNDED AS IF SHE SAID THERE WAS A TECHNICAL 16:30:38 PERSON THAT WAS DOWN THERE AND DID LOOK AT THE CAR. 16:30:40 SO I CAN'T TELL YOU, IF THEY DIDN'T SEE ANYTHING, THAT'S 16:30:45 PROBABLY WHY THEY DIDN'T TEAR IT APART. 16:30:47 IF THEY WOULD HAVE SEEN A COMPONENT FAILURE, I'M SURE THAT 16:30:50 THAT COMPONENT FAILURE WOULD HAVE COME OFF THAT CAR AND WE 16:30:53 WOULD HAVE RECEIVED IT. AND AGAIN IT MAY HAVE HAPPENED. 16:30:56 I DON'T KNOW THE SPECIFICS ON HER ACCIDENT. 16:30:59 BUT IT WASN'T ONLY HER CAR. THERE WERE OTHERS THAT GAVE 16:31:05 SIMILAR STORIES AND FOR HOW LONG WAS TOYOTA SAYING IT'S MATS, 16:31:10 FLOOR MATS OR RUGS OR STICKY PEDALS WHEN IT JUST WOULD SEEM 16:31:15 CLEAR BY HER STORY. I'M SURE THERE ARE OTHERS LIKE 16:31:19 HER THAT IT WASN'T THAT AT ALL. >> WELL, IT MAY NOT BE. 16:31:23 THERE ARE SO MANY DIFFERENT CAUSES. 16:31:27 THEY ARE VERY BROAD, VERY RARE. AND IN SOME CASES, THEY ARE JUST 16:31:31 VERY, VERY DIFFICULT TO DUPLICATE. 16:31:32 SO, I MEAN, THAT'S THE FRUSTRATING PART ABOUT 16:31:35 RESEARCHING WHAT HAPPENS ON SOME OF THESE INSTANCES. 16:31:39 ESPECIALLY IF THERE IS SOMETHING THAT'S GOING ON WITH THE 16:31:43 THROTTLE. IF THERE AREN'T ERROR CODES AND 16:31:45 IT CAN'T BE DUPLICATED, THAT WAS ONE OF THE ISSUES WITH THE 16:31:48 STICKY PEDAL IN THE BEGINNING. BY THE TIME THE CONSUMER GOT IT 16:31:52 TO THE DEALERSHIP, ALL THE MOISTURE HAD DRIED FROM THE 16:31:55 PEDAL AND THE PEDAL WOULDN'T STICK. 16:31:57 YOU'VE GOT A CONSUMER SAYING, I KNOW THIS THING HAS BEEN 16:32:00 STICKING. BUT BY THE TIME THEY GET IT TO 16:32:03 THE STORE, THAT CAN'T BE REPLICATED. 16:32:05 THAT TOOK AWHILE TO UNDERSTAND. >> BUT IN EVERY CASE -- WOULD 16:32:09 THAT HAPPEN IN EVERY CASE? >> SURELY ONCE THERE WERE MANY 16:32:12 DIFFERENT INSTANCES IT SEEMED TO BE A PATTERN THAT YOU DIDN'T 16:32:15 HAVE TO BE A ROCKET SCIENTIST TO SAY, HEY, WAIT A MINUTE. 16:32:19 MAYBE SOMETHING IS WRONG. THERE'S, YOU KNOW, NOT ONLY THE 16:32:23 ACCELERATION BUT WE'VE HEARD ABOUT STEERING AND BRAKES AND 16:32:28 OTHER THINGS. YOU KNOW, IT JUST SEEMS THAT IF 16:32:30 YOU LOOK AT EVERYTHING, IT CERTAINLY SEEMS TO ME THAT THERE 16:32:35 WAS AN ATTEMPT TO KEEP IT UNDER THE RUG AND KEEP IT UNDER THE 16:32:39 TABLE AND LET'S NOT TELL ANYBODY ANYTHING AND MAYBE IT WILL GO 16:32:43 AWAY. AND, OF COURSE, WITH ALL THE 16:32:45 TESTIMONY, NHTSA IS TO BLAME AS WELL. 16:32:48 I JUST DON'T THINK THAT TOYOTA HANDLED IT PROPERLY. 16:32:50 LET ME JUST -- GO AHEAD. >> IN THE CASE OF BRAKES IF YOU 16:32:53 WERE TALKING ABOUT PRIUS BRAKE, WE JUMPED ON THAT VERY QUICKLY 16:32:56 AND HAVE TAKEN CARE OF THAT. IN THE CASE OF COROLLA STEERING, 16:33:00 IT'S BEING INVESTIGATED RIGHT NOW. 16:33:01 SO, YES, WE HAVE COMPLAINTS ON IT. 16:33:04 NHTSA HAS COMPLAINTS. WE'RE DIGGING INTO THAT RIGHT 16:33:06 NOW TO FIND OUT WHAT IS THE ISSUE AND LET'S MAKE SURE THE 16:33:10 CUSTOMERS ARE HAPPY WITH THEIR PRODUCTS AND SAFE WITH THEIR 16:33:13 PRODUCTS. >> SO LET ME ASK YOU AS THE LAST 16:33:16 QUESTION, WHEN I WAS ASKED YESTERDAY, WHAT WOULD I ASK YOU 16:33:18 AND I SAID WHAT DID YOU KNOW AND WHEN YOU KNEW IT. 16:33:22 WHAT DO YOU KNOW THAT WE DON'T KNOW YET. 16:33:25 WHAT DO YOU KNOW THAT WE DON'T KNOW YET? 16:33:27 WHAT'S GOING TO COME OUT IN THE DAYS AND WEEKS? 16:33:30 I KNOW MR. TOYODA IS TESTIFYING IN ANOTHER COMMITTEE TOMORROW. 16:33:33 WHAT BOMBSHELLS ARE GOING TO COME OUT THAT WE DON'T YET KNOW. 16:33:37 >> GOD I HOPE THERE AREN'T ANY MORE. 16:33:40 LET'S GET BACK TO THE GOOD OLD DAYS OF 2009, AND I DIDN'T THINK 16:33:43 I'D EVER SAY THAT. YOU KNOW, RIGHT NOW, WE HAVE TO 16:33:49 FIX THE PROCESS SO THESE THINGS DON'T HAPPEN AGAIN. 16:33:52 I DON'T KNOW WHAT'S BEHIND THE CURTAIN. 16:33:55 NO ONE KNOWS IN THE AUTO INDUSTRY AS MANUFACTURERS WHAT 16:34:00 DEFECTS YOU COULD HAVE DOWN THE ROAD. 16:34:02 WHAT CHALLENGES YOU HAVE. SO IT'S IMPORTANT THAT WE HAVE 16:34:06 BUILT-IN QUALITY AND BUILD-IN SAFETY SO WE DON'T HAVE THESE 16:34:09 ISSUES. AND THAT'S WHY OUR PROCESSES ARE 16:34:14 CHANGING TO MAKE SURE THAT WE GET BACK TO WHERE WE ONCE WERE. 16:34:16 THIS WAS A COMPANY FOR 50 YEARS IN THE U.S. THAT, WHENEVER YOU 16:34:19 SAID TOYOTA OR YOU SAID CAMERA IT WAS QUALITY, DEPENDABILITY. 16:34:25 AND WE'VE STUBBED OUR TOE. AND WE'VE GOT TO GET BACK TO 16:34:27 WHERE THAT ONCE WAS AND WE'RE GOING TO DO THAT. 16:34:29 >> I WOULD HOPE SO. THANK YOU MR. CHAIRMAN FOR 16:34:33 HOLDING THE HEARING. >> MR. GING RY, QUESTION? 16:34:36 >> VERY, VERY QUICKLY. I COULD ASK YOU A COUPLE OF 16:34:40 YES/NO QUESTIONS. HAVE YOU ENJOYED BEING HERE 16:34:44 TODAY? AND DO YOU WANT TO TAKE ANY MORE 16:34:46 QUESTIONS? I GUESS THE ANSWERS WOULD BE YES 16:34:51 AND NO. SERIOUSLY IDID WANT TO CAN YOU. 16:34:53 DO YOU THINK THIS IS A SOFTWARE OR HARDWARE PROBLEM? 16:34:55 >> IN THE CASE OF THE ETC? >> YES. 16:34:59 >> AGAIN, BASED ON OUR ANALYSIS OF WHAT WE'VE SEEN, BASED ON 16:35:04 GOING TO ACCIDENT SITES AND CHECKING THESE CARS OUT, I DON'T 16:35:07 THINK IT'S EITHER RIGHT NOW. BUT EXPONENT HAS NOT TESTED THE 16:35:11 SOFTWARE YET. SO THAT'S YET TO COME. 16:35:13 SO IF THERE IS A SOFTWARE ISSUE, IF THERE IS AN ISSUE ABOUT HOW 16:35:18 INDEPENDENTLY THESE TWO PROCESSORS ARE WORKING BECAUSE 16:35:20 THAT'S THE KEY TO MAKE SURE THAT THIS THING WORKS. 16:35:23 WE'LL KNOW THAT. >> BUT IT COULD BE EITHER, AND 16:35:26 YOU'RE GOING TO GET TO THE BOTTOM OF THAT? 16:35:28 >> WE HAVE TO GET TO THE BOTTOM OF IT. 16:35:30 >> ABSOLUTELY. AND IT MAY BE THAT THE BOTTOM OF 16:35:32 IT IS THEY FIND NOTHING. AND WE HAVE ANOTHER INDEPENDENT 16:35:35 GROUP THAT GOES IN AND RESEARCHES AGAIN. 16:35:39 >> MR. LENTZ, THANK YOU. MR. CHAIRMAN, THANK YOU. 16:35:43 I YIELD BACK. >> THAT CONCLUDES ALL QUESTIONS 16:35:44 OF THIS PANEL. MR. LENTZ, THANK YOU. 16:35:47 WE INVITE YOU TO STAY FOR THE NEXT PANEL, SECRETARY LaHOOD. 16:35:51 WE HAVE FIVE VOTES COMING UP. I'M GOING TO TRY TO GET THE 16:35:53 SECRETARY'S TESTIMONY IN AND THEN WE CAN GO VOTE. 16:35:56 WE'LL HAVE A RECESS. THANK YOU. 16:35:58 >> THANK YOU VERY MUCH. >> I'M GOING TO ASK THE MEDIA TO 16:36:33 MOVE OUT OF THE WAY. SECRETARY LaHOOD IS HERE. 16:36:36 WE'D LIKE TO HEAR HIS TESTIMONY AND GET IT DONE BEFORE WE HAVE 16:36:38 TO GO VOTE. >> MR. LENTZ, I SEE YOU'RE 16:37:11 MOVING OUT. I KNOW YOU ARE GETTING CRUSHED 16:37:14 THERE. BUT WE'RE TRYING TO MOVE THINGS 16:37:15 ALONG. I'D LIKE TO CALL OUR THIRD 16:37:25 WITNESS FOR TODAY. THE HONORABLE RAYMOND H. LaHOOD, 16:37:30 SECRETARY OF THE UNITED STATES DEPARTMENT OF TRANSPORTATION. 16:37:33 MR. LaHOOD, WELCOME. THANKS FOR BEING HERE. 16:37:35 IT'S THE POLICY OF THIS SUBCOMMITTEE TO TAKE ALL 16:37:37 TESTIMONY UNDER OATH. PLEASE BE ADVISED YOU HAVE A 16:37:39 RIGHT UNDER THE RULES OF THE HOUSE TO BE ADVISED BY COUNSEL 16:37:42 DURING YOUR TESTIMONY. DO YOU WISH TO BE REPRESENTED BY 16:37:46 COUNSEL? THANK YOU. 16:37:47 PLEASE RAISE YOUR HAND. DO YOU SWEAR THE TESTIMONY YOU 16:37:51 ARE ABOUT TO GIVE TO BE THE TRUTH, THE WHOLE TRUTH AND 16:37:54 NOTHING BUT THE TRUTH IN THE MATTER PENDING BEFORE THIS 16:37:57 COMMITTEE? >> I DO. 16:37:58 >> THANK YOU, MR. SECRETARY. WE'LL LOOK FORWARD TO YOUR 16:38:01 OPENING STATEMENT. AND AFTER THAT WE'RE PROBABLY 16:38:02 GOING TO HAVE TO RUN AND DO SOME VOTES. 16:38:07 >> THANK YOU, MR. CHAIRMAN FOR THE OPPORTUNITY TO APPEAR BEFORE 16:38:10 YOU TODAY TO DISCUSS THE IMPORTANT ISSUE OF TOYOTA'S 16:38:14 RECENT SAFETY RECALLS. EVER SINCE I WAS SWORN IN AS THE 16:38:18 SECRETARY OF TRANSPORTATION 13 MONTHS AGO, I'VE SAID THAT 16:38:21 SAFETY IS THE DEPARTMENT'S NUMBER ONE PRIORITY. 16:38:23 I'D LIKE TO THINK THAT WE HAVE DEMONSTRATED THAT COMMITMENT 16:38:27 TIME AND TIME AND TIME AGAIN. WHEN THE TERRIBLE CRASH OF THE 16:38:31 WASHINGTON METRO SYSTEM CLAIMED NINE LIVES AND INJURED DOZENS OF 16:38:36 OTHERS LAST SUMMER, WE QUICKLY INTRODUCED LEGISLATION TO GIVE 16:38:38 US FEDERAL SAFETY OVERSIGHT OF TRANSIT SYSTEMS SOMETIMES WE 16:38:42 DON'T HAVE. WHEN COLGAN AIR FLIGHT 3407 16:38:45 CRASHED IN BUFFALO, WE LEARNED RIGHT AWAY WHAT MANY OF THE 16:38:48 PROBLEMS WERE AND WE DID NOT WAIT A YEAR FOR THE NTSB TO 16:38:53 CONCLUDE ITS INVESTIGATION BEFORE WE ACTED. 16:38:54 WE BEGAN WORKING WITH THE AVIATION INDUSTRY IMMEDIATELY TO 16:38:58 ENHANCE AIRLINE SAFETY AND PILOT TRAINING HOLDING 12 SAFETY 16:39:02 SUMMITS AROUND THE COUNTRY. THIS SPRING, THE FAA WILL ISSUE 16:39:06 A NEW RULE TO COMBAT PILOT FATIGUE AND IT HAS ALREADY BEEN 16:39:11 TO -- BEGUN TO OVERHAUL PILOT CERTIFICATE -- PILOT 16:39:17 CERTIFICATION QUALIFICATIONS. ONE OF THE HALLMARKS OF MY TIME 16:39:20 AS TRANSPORTATION SECRETARY HAS BEEN OUR WORK ON DISTRACTED 16:39:24 DRIVING. FOR ALL OF YOU WITH CELL PHONES 16:39:25 AND BLACKBERRYS AND OTHER ELECTRONIC DEVICES, I'M ON A 16:39:29 RAMPAGE ABOUT PEOPLE TALKING AND TEXTING WHILE DRIVING A BUS, A 16:39:33 CAR, A TRAIN OR A PLANE. IT'S A MENACE TO SOCIETY. 16:39:37 WE RECENTLY EXERCISED OUR AUTHORITY TO BAN TRUCK DRIVERS 16:39:40 FROM TEXTING. THE REASON I SAY ALL OF THIS, MY 16:39:44 NUMBER ONE PRIORITY HAS BEEN AND WILL BE AS LONG AS I'M IN THIS 16:39:49 POST, SAFETY. NOW FOR TOYOTA. 16:39:50 THE TOYOTA RECALL SITUATION IS VERY SERIOUS. 16:39:54 WE'RE TREATING IT SERIOUSLY. THE THREE RECALLS INVOLVING 16:39:56 TOYOTA ARE AMONG THE LARGEST IN AUTOMOBILE HISTORY AFFECTING 16:40:00 MORE THAN 6 MILLION PEOPLE IN THIS COUNTRY. 16:40:03 I'D LIKE TO SAY A WORD DIRECTLY TO CONSUMERS. 16:40:06 YOU NOTICE THAT YOUR GAS PEDAL OR YOUR BRAKE IS NOT RESPONDING 16:40:09 AS IT NORMALLY WOULD, CONTACT YOUR TOYOTA DEALER RIGHT AWAY. 16:40:13 THE RECENT RECALLS INVOLVE THREE ISSUES. 16:40:15 FIRST, ACCELERATOR PEDAL, ENTRAPMENT BY FLOOR MATS WHICH 16:40:19 CAN LEAD TO UNCONTROLLED ACCELERATION AT VERY HIGH 16:40:22 SPEEDS. IT'S IMPORTANT TO TAKE YOUR 16:40:24 FLOOR MATS OUT OF THE DRIVER'S SIDE OF YOUR VEHICLE UNTIL YOUR 16:40:27 CAR HAS BEEN REPAIRED FOR THIS PROBLEM BY A TOYOTA DEALER. 16:40:31 SECOND, ACCELERATOR PEDALS STICKING OR RETURNING SLOWLY 16:40:34 AFTER BEING DEPRESSED. IF THE PEDAL IS HARDER TO 16:40:38 DEPRESS OR SLOWER TO RETURN AFTER RELEASING IT, THIS COULD 16:40:41 BE THE PRECURSOR TO WHAT IS KNOWN AS A STICKY PEDAL. 16:40:44 IF YOUR PEDAL HAS THREE -- IF YOUR MEDDLE HAS THESE SYMPTOMS, 16:40:50 CONTACT YOUR TOYOTA DEALER IMMEDIATELY. 16:40:51 IF YOUR GAS PEDAL BECOMES STUCK FOR ANY REASON, STEADILY APPLY 16:40:55 THE BRAKE, PUT THE GHAR NEUTRAL, BRING IT TO A STOP IN A SAFE 16:41:00 PLACE AND CALL YOUR DEALER. WITH THE TOYOTA PRIUS FOR MODEL 16:41:03 YEAR 2010 AND THE LEXUS HS-250 IF YOU EXPERIENCE A CHANGE IN 16:41:08 YOUR CAR'S BRAKING PERFORMANCE, CONTACT YOUR TOYOTA DEALER. 16:41:11 NOW I WANT EVERYONE TO KNOW THAT THE NATIONAL HIGHWAY TRANSFER 16:41:17 SAFETY ADMINISTRATION HAS BEEN ONE OF THE -- HAS THE MOST 16:41:20 EFFECTIVE DEFECT INVESTIGATION PROGRAMS IN THE WORLD KNOWN AS 16:41:25 NHTSA, ITS JOB IS TO INVESTIGATE COMPLAINTS AND TO LOOK FOR 16:41:28 DEFECTS. IT RECEIVES MORE THAN 30,000 16:41:31 COMPLAINTS FROM CONSUMERS EVERY YEAR AND REVIEWS EVERY ONE OF 16:41:34 THEM QUICKLY AND CAREFULLY. OVER JUST THE PAST THREE YEARS, 16:41:42 NHTSA'S COMPLIANCE INVESTIGATION HAVE RESULTED IN 524 RECALLS 16:41:46 INVOLVING 23.5 MILLION CARS. OF THE 100 INVESTIGATION NHTSA 16:41:53 OPEN IN AN AVERAGE YEAR, THERE ARE CURRENTLY 44 OPEN DEFECT 16:41:57 INVESTIGATIONS, FIVE OF WHICH INVOLVE TOYOTA. 16:41:59 EVERY STEP OF THE WAY NHTSA OFFICIALS HAVE PUSHED TOYOTA TO 16:42:03 TAKE CORRECTIVE ACTION SO THAT CONSUMERS COULD BE SAFE. 16:42:07 UNHAPPY WITH TOYOTA RESPONSIVENESS TO OUR SAFETY 16:42:09 CONCERNS, THE ACTING ADMINISTRATOR OF NHTSA, RON 16:42:14 MEDFORD AND TWO ASSOCIATES FLEW TO JAPAN IN DECEMBER OF '09 TO 16:42:17 CLARIFY FOR TOYOTA MANAGEMENT WHAT THE COMPANY'S LEGAL 16:42:21 OBLIGATIONS TOR FIND AND REMEDY SAFETY DEFECTS IN VEHICLES SOLD 16:42:25 HERE. IN JANUARY, OUR NEW 16:42:28 ADMINISTRATOR, DAVID STRICKLAND AND RON MEDFORD, NOW OUR DEPUTY 16:42:32 ADMINISTRATOR, TOLD THE PRESIDENT OF TOYOTA NORTH 16:42:34 AMERICA IN NO UNCERTAIN TERMS THAT WE EXPECT PROMPT ACTION. 16:42:42 I'VE ALSO TALKED PERSONALLY TO THE PRESIDENT OF TOYOTA WITH 16:42:47 POTENTIAL FATAL DEFECTS ON THE ROAD, NHTSA HAS PRESSED HARD TO 16:42:53 EXPEDITE THESE SAFETY FIXES. IF NHTSA HAD OPENED A FORMAL 16:42:57 INVESTIGATION AND TOYOTA HAD RESISTED A RECALL, THIS WOULD 16:43:00 HAVE CONSUMED AN ENORMOUS AMOUNT OF TIME AND RESOURCES IN EFECT 16:43:03 EXTENDING THE PERIOD IN WHICH OWNERS OF AFFECTED VEHICLES WERE 16:43:06 AT RISK. BY ENGAGING TOYOTA DIRECTLY AND 16:43:11 PERSUADING THE COMPANY TO TAKE ACTION, THE AGENCY AVOIDED A 16:43:15 LENGTHY INVESTIGATION THAT WOULD HAVE DELAYED FIXES FOR A YEAR OR 16:43:18 MORE. LAST WEEK, I ANNOUNCED WE ARE 16:43:20 INVESTIGATING WHETHER TOYOTA ACTED QUICKLY ENOUGH IN 16:43:23 REPORTING THESE SAFETY DEFECTS TO NHTSA AS WELL AS WHETHER THEY 16:43:26 TOOK ALL APPROPRIATE ACTION TO PROTECT CONSUMERS. 16:43:28 WE HAVE ASKED TOYOTA TO TURN OVER A WIDE RANGE OF DOCUMENTS 16:43:31 WHICH WILL SHOW US WHEN AND HOW THEY LEARNED ABOUT THESE SAFETY 16:43:36 PROBLEMS. NHTSA WILL CONTINUE TO MAKE SURE 16:43:39 TOYOTA IS DOING ALL IT HAS PROMISED TO MAKE ITS VEHICLES 16:43:42 SAFE. WE'LL CONTINUE TO INVESTIGATE 16:43:43 ALL POSSIBLE CAUSES OF UNINTENDED ACCELERATION. 16:43:46 WHILE THE RECALLS ARE IMPORTANT STEPS IN THAT DIRECTION, WE 16:43:50 DON'T MAINTAIN THAT THEY ANSWER EVERY QUESTION ABOUT THAT ISSUE. 16:43:54 SOME PEOPLE BELIEVE THAT ELECTROMAGNETIC INTERFERENCE HAS 16:43:58 A DANGEROUS EFFECT ON THESE VEHICLES, ALTHOUGH WE ARE NOT 16:44:01 AWARE OF ANY INCIDENTS PROVEN TO BE THE CAUSE BY SUCH 16:44:05 INTERFERENCE. NHTSA IS DOING A THOROUGH REVIEW 16:44:09 OF THAT SUBJECT TO ENSURE SAFETY. 16:44:11 IF NHTSA FINDS A PROBLEM, WE WILL MAKE SURE IT'S RESOLVED. 16:44:15 RECENTLY, I SPOKE WITH -- BY PHONE WITH MR. TOYODA. 16:44:18 HE ASSURED ME TOYOTA TAKES U.S. SAFETY CONCERNS VERY SERIOUSLY 16:44:22 AND THAT SAFETY IS THE COMPANY'S TOP PRIORITY. 16:44:24 I INTEND TO HOLD HIM TO THAT. FINALLY, I WANT TO REMIND 16:44:27 EVERYONE THERE IS A REASON WE INVESTIGATE SAFETY DEFECTS, AND 16:44:32 THERE'S A REASON WE PUSH AUTOMAKERS TO DO THE RIGHT 16:44:34 THING. I LISTENED TO THE 911 TAPE OF 16:44:37 THE SAILOR FAMILY'S HARROWING LAST MOMENTS. 16:44:40 MARK SAYLOR, A CALIFORNIA HIGHWAY PATROLMAN, DIED LAST 16:44:44 YEAR ALONG WITH HIS WIFE AND DAUGHTER AND HIS BROTHER-IN-LAW 16:44:46 WHEN THE ACCELERATOR GOT STUCK IN THE LEXUS THEY WERE DRIVING 16:44:51 IN CRASHED AT MORE THAN 120 MILES AN HOUR. 16:44:53 THAT SAY HORRIBLE TRAGEDY AND ONE THAT I HOPE NO OTHER FAMILY 16:44:57 HAS TO ENDURE. NOW, MR. CHAIRMAN, I KNOW YOU 16:45:00 ALL HAVE TO GO VOTE. I'M CERTAINLY WILLING TO STAY 16:45:02 AND ANSWER ALL THE QUESTIONS THAT ANY MEMBER HAS. 16:45:05 I WANT THE COMMITTEE TO KNOW, I WAS SWORN IN ON JANUARY 23rd, 16:45:10 '09. I'LL TAKE A BACK SEAT TO NOBODY 16:45:11 ON SAFETY. I'VE DONE A LOT. 16:45:13 WE'VE DONE A LOT. SO I'LL TRY AND ANSWER EVERY 16:45:15 QUESTION AS SPECIFICALLY AS I CAN DURING MY TIME AS THE 16:45:21 SECRETARY. AND FOR THOSE THAT I DON'T KNOW 16:45:23 THE ANSWER TO PRIOR TO MY TENURE I'LL BE HAPPY TO GET ALL THE 16:45:27 INFORMATION POSSIBLE FOR THE RECORD. 16:45:28 THANK YOU VERY MUCH. >> THANK YOU, MR. SECRETARY. 16:45:30 AND YOU'RE RIGHT. WE DO HAVE VOTES. 16:45:32 WE HAVE FIVE VOTES. WE'RE GOING TO BE IN RECESS 16:45:34 UNTIL 5:30. 5:30. 16:45:38 AND APPRECIATE IF YOU'D STAY. AND WE LOOK FORWARD TO ANSWERING 16:45:41 QUESTIONS THEN. IF YOU WANT TO WALK TO THE FLOOR 16:45:43 WITH US, YOU ARE MORE THAN WELCOME TO DO SO.

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House Oversight and Government Reform Committee holds a hearing on Toyota safety record with Ray LaHood, David Strickland of the NHTSA Mr. Akio Toyoda, Mr. Yoshimi Inaba Other witnesses will include Joan Claybrook, Clarence Ditlow, Sean Kane of the Safety Research and Strategies Inc., and two victims 10:58:50 >> GOOD MORNING. THANK YOU ALL FOR BEING HERE. 10:58:58 IT IS HARD TO IMAGINE THE HORROR OF THE EVENT THAT TOOK THE LIVES 11:00:00 AS THIS CAR REACHED TOP SPEED IN JUST A FEW SECONDS, IT WAS ALL 11:00:02 HE COULD DO TO KEEP IT UNDER CONTROL. 11:00:06 IN A FRANTIC CALL TO 911, HIS BROTHER-IN-LAW, CHRIS, REPORTED 11:00:12 THE GAS PEDAL WAS STUCK, THE BRAKES DID NOT WORK, AND THEY 11:00:17 WERE BARRELLING DOWN ON AN INTERSECTION. 11:00:21 HE YELLED OVER THE PHONE, HOLD ON, HOLD ON, HOLD ON, HOLD ON 11:00:28 AND PRAY. PRAY. 11:00:30 THOSE WERE HIS LAST WORDS. WE NOW KNOW THAT THE TERRIFYING 11:00:36 DEATH OF THIS FAMILY WERE NOT CAUSED BY A FREAK ACCIDENT. 11:00:41 IT TURNS OUT THAT PEOPLE FROM ALL OVER THE COUNTRY HAD BEEN 11:00:46 COMPLAINING ABOUT SUDDEN ACCELERATION IN TOYOTA VEHICLES. 11:00:52 WHAT PEOPLE ARE WONDERING IS, WILL I BE NEXT? 11:01:02 OUR INVESTIGATION FOUND THAT THE NATIONAL HIGHWAY TRAFFIC SAFETY 11:01:06 ADMINISTRATION HAS RECEIVED NEARLY 2,500 DRIVER COMPLAINTS 11:01:13 ABOUT SUDDEN ACCELERATION IN TOYOTA VEHICLES. 11:01:15 WE HAVE DISCOVERED THAT SINCE 2000, ONE INSURANCE COMPANY, 11:01:21 STATE FARM, REPORTED OVER 900 CASES OF SUDDEN ACCELERATION IN 11:01:27 TOYOTAS. WE HAVE ALL LEARNED THAT THEY 11:01:33 KNEW VERY LITTLE ABOUT IT AND WHEN IT DID DO SOMETHING, 11:01:36 ACTIONS WERE VERY LIMITED. SIMILARLY, TOYOTA IGNORED OR 11:01:40 MINIMIZED REPORTS OF SUDDEN ACCELERATION. 11:01:45 TOYOTA FIRST BLAMED THE PROBLEM ON IMPROPER INSTALLATION OF 11:01:47 FLOOR MATS. NEVER MIND THAT MANY REPORTS OF 11:01:53 ACCELERATION INVOLVED VEHICLES THAT DID NOT EVEN HAVE A FLOOR 11:01:55 MAT. NOW THEY BLAME IT ON STICKY GAS 11:02:01 PEDALS. I REMAIN SKEPTICAL THAT THESE 11:02:03 ARE THE SOLE CAUSES, THE WAY THESE COMPLAINTS WERE HANDLED 11:02:09 INDICATES PROBLEMS AT BOTH NITSA AND TOYOTA. 11:02:14 SINCE 2003, NITSA HAS UNDERTAKEN A MULTITUDE OF SUDDEN UNSENDED 11:02:22 ACCELERATION. THERE IS A SERIES QUESTION OF 11:02:25 WHETHER THEY USED ALL OF THE REGULATORY CLUES TO THOROUGHLY 11:02:32 INVESTIGATE THIS ISSUE. WHEN I READ ACCOUNTS ABOUT HOW 11:02:38 FORMER NITSA OFFICIALS WERE HIRED BY TOYOTA AND HELPED 11:02:45 NEGOTIATE THE SCOPE OF REGULATORY INCREASE, I HAVE MY 11:02:49 OWN DOUBTS. IN THE CASE OF TOYOTA, THERE IS 11:02:54 STRIKING EVIDENCE THAT THE COMPANY WAS AT TIMES MORE 11:03:00 CONCERNED WITH PROFIT THAN CUSTOMER SAFETY. 11:03:02 TOYOTA'S OWNER INTERNAL DOCUMENTS INDICATED THAT A 11:03:05 PREMIUM WAS PLACED ON DELAYING OR CLOSING NITSA. 11:03:16 BLOCKING THE DISCOVERY OF SAFETY DEFENSE. 11:03:19 TOYOTA OFFICIALS BRAGGED ABOUT SAVING ONE OF THE MILLION BY 11:03:23 PREVENTING THEM FROM FINDING A DEFECT RELATED TO THE SUDDEN 11:03:29 ACCELERATION. THE RECENT PRIUS RECALL 11:03:32 REPRESENTS YET ANOTHER TROUBLING PATTERN OF DELAY WHEN IT COMES 11:03:35 TO REVEALING SAFETY INFORMATION. A FEW WEEKS AGO, TOYOTA 11:03:41 ANNOUNCED IT WOULD RECALL CERTAIN MODELS BECAUSE OF A 11:03:44 SOFTWARE PROBLEM RELATED TO THE BREAKTHROUGH SYSTEM. 11:03:48 DRIVERS BEGAN COMPLAINING TO NITSA ABOUT PRIUS BRAKE PROBLEMS 11:03:53 LAST YEAR. TOYOTA KNEW ABOUT THE PROBLEM 11:03:56 AND WAS ALREADY ADDRESSING IT FOR NEW CARS ON THE ASSEMBLY 11:04:01 LINE. AT THE SAME TIME TOYOTA WITH 11:04:04 HELD THAT INFORMATION FROM BOTH NITSA AND CURRENT PRIUS DRIVERS 11:04:10 UNTIL MONTHS LATER. IF THE SPOTLIGHT HAD NOT ALREADY 11:04:13 BEEN SHINING BRIGHTLY ON TOYOTA, WOULD THE PUBLIC HAVE EVER BEEN 11:04:18 TOLD THAT IS A QUESTION THAT NEEDS TO BE ANSWERED? 11:04:22 THEY FAILED THE TAXPAYERS, TOYOTA FAILED THE CUSTOMERS. 11:04:28 THOUSANDS OF COMPLAINTS, MULTIPLE INVESTIGATIONS AND 11:04:33 RECALLS ARE BAD ENOUGH. WE NOW HAVE 39 DEATHS ATTRIBUTED 11:04:39 TO SUDDEN ACCELERATION IN TOYOTAS. 11:04:42 TO GIVE THAT HORRIFYING NUMBER SOME PERSPECTIVE, THERE WERE 27 11:04:47 DEATHS ATTRIBUTED TO THE FAMOUS PINTO EXPLODING GAS TANK ON THE 11:04:54 1970s. IN SHORT, IF THE CAMRY AND THE 11:04:58 PRIUS WERE AIRPLANES, THEY WOULD BE GROUNDED. 11:05:02 THESE FACTS RAISED SEVERAL IMPORTANT QUESTIONS. 11:05:06 IS IT SAFE TO DRIVE THESE CARS? IS TOYOTA NOW SERIOUS ABOUT 11:05:13 SOLVING THE PROBLEM? CAN NITSA SAY THE CAUSE OF THE 11:05:17 PROBLEM HAS BEEN IDENTIFIED AND FIXED? 11:05:20 WHAT CAN WE DO TO PREVENT THIS KIND OF THING FROM HAPPENING 11:05:24 AGAIN? CAN THE AMERICAN PEOPLE TRUST 11:05:30 NITSA TO ENSURE VEHICLE SAFETY? WE WILL FIND AN ANSWER TO THESE 11:05:34 AND MANY OTHER QUESTIONS TODAY. ON THAT NOTE I YIELD TO THE 11:05:38 GENTLEMEN FROM CALIFORNIA, CONGRESSMAN DARRELL ISA FOR AN 11:05:42 OPENING STATEMENT. >> THANK YOU, MR. CHAIRMAN. 11:05:45 HOUSE KEEPING. I WOULD ASK CONSENT TO MR. JEFF 11:05:49 DAVIS OF THE COMMON WEALTH OF KENTUCKY BE ALLOWED TO. 11:05:52 >> SIS PATE AS A MEMBER RECOGNIZE THAT IT WILL BE 11:05:58 UNLIKELY THERE WILL BE TIME TO ASK QUESTIONS. 11:06:00 >> WITHOUT OBJECTION. >> THANK YOU, MR. CHAIRMAN. 11:06:03 IT IS THE OBLIGATION OF YOURSELF PRIMARILY AND MYSELF TO SET THE 11:06:08 TONE FOR HEARINGS. TO TEE UP, IF YOU WILL, THROUGH 11:06:13 OPENING STATEMENTS HOW WE VIEW WHAT WE ARE GOING TO PROBABLY 11:06:15 SHARE TODAY. I WOULD LIKE TO COMMEND YOU FOR 11:06:18 THE WORK YOU HAVE DONE IN YOUR OPENING STATEMENT AND ADD A 11:06:20 LITTLE BIT MORE TO IT. I WOULD LIKE TO PUT UP THE SLIDE 11:06:27 OF THE RECALLS FROM RECALL TO RECOVERY. 11:06:32 THIS SLIDE SHOWS A LITTLE OF THE HISTORY THAT THE CHAIRMAN 11:06:35 ALLUDED TO, THE 1978 RECALL, THE FORD PINTO AND THE GM RECALL FOR 11:06:42 STEERING PROBLEMS, 5.8 MILLION VEHICLES. 11:06:46 THE VERY SAD AND GREAT LOSS OF LIFE, 1982 TYLENOL RECALL OF 31 11:06:52 MILLION BOTTLES OF TYLENOL PILLS WHICH OF COURSE LED TO THE 11:06:58 TAMPER-PROOF BOTTLES WE TAKE FOR GRANTED TODAY. 11:07:01 THE 1996 FORD RECALLS OF EIGHT MILLION VEHICLES FOR FIRES AND 11:07:04 OF COURSE THE WELL-PUBLICIZED GM RECALL AFTER THEIR PICKUP TRUCKS 11:07:11 WOULD SPONTANEOUSLY EXPLODE IF HIT IN THE REAR. 11:07:16 THIS IS AN EXAMPLE OF COMPANIES BOTH AUTO AND NON-AUTO WHO OVER 11:07:20 THE YEARS HAVE FACED CLEAR CHALLENGES. 11:07:24 IN THE CASE OF THE AUTO COMPANIES, WE EXPECT TO SEE THEM 11:07:28 AGAIN. WE JUDGE THEM NOT BY WHETHER 11:07:33 THEY HAVE UNSEEN AND DEVELOPED PROBLEMS IN THEIR VEHICLES, BUT 11:07:38 HOW QUICKLY THEY RESPOND AND HOW THEY IN FACT REACT AFTER 11:07:43 SCRUTINY EITHER WITHIN THEIR OWN COMPANY OR FROM WITHOUT BRINGS 11:07:46 THESE TO THEIR ATTENTION. I WILL NOT CALL ANY OF THESE 11:07:50 FIVE A SUCCESS EXCEPT FOR TYLENOL. 11:07:54 TYLENOL WAS A VICTIM OF OTHER PEOPLE POISONING THEIR PRODUCT 11:07:58 AND YET THEY TOOK A STEP THAT HAS CHANGED SAFETY OF THE 11:08:04 MEDICINES WE TAKE FOR GRANTED TODAY. 11:08:08 # RECENTLY THEY AIRED A TELEVISION 11:08:18 COMMERCIAL. IN IT THEY SAID IN FACT GOOD 11:08:21 COMPANIES FIXED THE MISTAKES THEY MADE, BUT GREAT COMPANIES 11:08:28 LEARN FROM THEM. WE WILL BE ASKING THE VERY 11:08:33 QUESTIONS AS TO WHETHER OR NOT THEY ARE A GOOD COMPANY OR A 11:08:37 GREAT COMPANY. MY 2nd SLIDE I THINK DEPICTS ONE 11:08:43 OF THE CHALLENGES WHY PRIOR TO TODAY WE CANNOT SAY TOYOTA WAS A 11:08:46 GREAT COMPANY. PERHAPS NOT EVEN A GOOD COMPANY. 11:08:49 WHEN IN 2007, WHAT WE KNOW FOR A FACT IS THAT FLOOR MAT PROBLEMS 11:08:57 OR GAS PEDAL ENTRAPMENT WERE DISCOVERED IN SIMILAR VEHICLES 11:09:02 IN THE UNITED STATES AND JAPAN. IN THE UNITED STATES WORKING 11:09:06 WITH NITSA, A NEGOTIATED FIX RELATED TO THE CARPETS OCCURRED. 11:09:12 IN JAPAN THE GAS PEDAL LIKE THE ONE SEEN HERE TODAY WAS SHORT. 11:09:23 IN 2009 NEARLY TWO YEARS LATER WE HAD THE SAD AND FATAL LOSS OF 11:09:29 WHICH IS IN ALL LIKELIHOOD OR REPORTED AND NOT FORMALLY 11:09:34 CONTESTED TO BE A CARPET ENTRAPMENT PROBLEM OF AN 11:09:38 AUTOMOBILE LOANED BY BOB BAKER, A LOCAL DEALER IN MY CITY THAT 11:09:41 LED TO THIS LOSS OF LIFE. TODAY, IN 2010, GAS PEDALS 11:09:49 ARE SHORTENED AT DEALERS AROUND THE COUNTRY. 11:09:52 IT IS VERY CLEAR THAT AT LEAST AT TOYOTA, A POSSIBLE SOLUTION 11:09:58 NOW SEEN AS SUPERIOR WAS AVAILABLE, CONTEMPLATE AND 11:10:03 EXECUTED, BUT NOT FOR THE VERY CAR THAT ULTIMATELY THE S 350 11:10:08 THAT LED TO THE LOSS OF LIFE. TODAY WE WILL BE ASKING TWO 11:10:13 QUESTIONS. HOW COULD NITSA IN THIS MODERN 11:10:16 AGE IN WHICH I CAN GOOGLE SECRETARY LE HOOD'S NAME AND GET 11:10:20 PICTURES FROM ALL OVER THE WORLD TO GET INFORMATION AND BIOAND 11:10:24 ALMOST ANYTHING FROM DATABASES AROUND THE GLOBE HOW IS IT NITSA 11:10:34 DOES NOT HAVE A SYSTEM TO KNOW ABOUT EVERY REPORT WHETHER IT'S 11:10:37 A STICKY ACCELERATOR IN GREAT BRITAIN OR WHETHER IT IS A 11:10:41 TROUBLED SYSTEM IN CANADA OR WHETHER IT IS A DIFFERENT, BUT 11:10:47 SIMILAR VEHICLE IN JAPAN, NITSA IS NOT PREPARED TO ACT. 11:10:52 SOME WOULD SAY WE SHOULD IN FACT ADD TO OUR BODY OF LAWS I'M 11:11:07 DELIGHTED TO HAVE PLY FRIEND AND FORMER COLLEAGUE HERE BECAUSE IT 11:11:12 WILL BE ON HIS WATCH THE SECRETARY OR THE DEPARTMENT OF 11:11:16 TRANSPORTATION AND WILL BE A GOOD ORGANIZATION DEALING WITH 11:11:19 THE SPECIFIC PROBLEMS OR A GREAT ORGANIZATION LEARNING FROM THE 11:11:24 MISTAKES OF THE PAST. I THANK YOU FOR HOLDING THE 11:11:31 HEARING AND I YIELD BACK. >> THANK YOU FOR YOUR STATEMENT. 11:11:34 THIS TIME WE LIKE TO INTRODUCE OUR FIRST WITNESS FROM THE 11:11:39 HONORABLE RAYMOND H. LE HOOD FROM THE U.S. DEPARTMENT OF 11:11:43 TRANSPORTATION. IT'S A TRADITION THAT WE SWEAR 11:11:50 ALL OF OUR WITNESSES. STAND AND RAISE YOUR RIGHT HAND. 11:11:57 DO YOU SOLEMNLY SWEAR TO TELL THE TRUTH, THE WHOLE TRUTH AND 11:12:01 NOTHING BUT THE TRUTH? >> I DO. 11:12:03 >> LET THE RECORD REFLECT THAT THE WITNESS ANSWERED IN THE 11:12:06 AFFIRMATIVE. YOU MAY BE SEATED. 11:12:08 YOU MAY BEGIN. >> THANK YOU, RANKING MEMBERS 11:12:15 AND MEMBERS OF THE COMMITTEE FOR THE OPPORTUNITY TO STAND BEFORE 11:12:19 YOU TODAY TO DISCUSS THE IMPORTANT ISSUE OF TOYOTA'S 11:12:22 RECENT SAFETY RECALLS. EVER SINCE I WAS SWORN IN AS 11:12:26 SECRETARY OF TRANSPORTATION 13 MONTHS AGO, I SAID THAT SAFETY 11:12:30 IS THE DEPARTMENT'S NUMBER ONE PRIORITY. 11:12:35 I WOULD LIKE TO THINK WE HAVE DEMONSTRATED THAT TIME AND TIME 11:12:37 AND TIME AGAIN WHEN THE TERRIBLE CRASH AT THE WASHINGTON METRO 11:12:42 SYSTEM CLAIMED NINE LIVES AND INJURED DOZENS OF OTHERS LAST 11:12:46 SUMMER, WE INTRODUCED LEGISLATION THAT I WOULD 11:12:49 ENCOURAGE ALL OF TO YOU COSPONSOR AND GIVE US OVERSIGHT 11:12:54 OVER TRANSIT. WE WERE PROHIBITED FROM HAVING 11:13:00 THAT RESPONSIBILITY. WHEN AIR FLIGHT 3407 CRASHED IN 11:13:04 BUFFALO, WE LEARNED RIGHT AWAY WHAT MANY OF THE PROBLEMS WERE 11:13:09 AND WE DID NOT WAIT ONE YEAR FOR THE NTSB TO CONCLUDE THE 11:13:16 INVESTIGATION AND WE BEGAN IMMEDIATELY TO ENHANCE AIRLINE 11:13:19 SAFETY AND PILOT TRAINING HOLDING 12 SAFETY SUMMITS AROUND 11:13:22 THE COUNTRY. SPRING THE FAA WILL ISSUE A RULE 11:13:29 TO COMBAT PILOT FATIGUE AND BEGAN TO OVERHAUL CERTIFICATION 11:13:35 QUALIFICATIONS. ONE OF THE HALL MARKS OF MY TIME 11:13:43 HAS BEEN WORK ON DISTRACTED DRIVING. 11:13:45 WITH ALL OF YOU WITH CELL PHONES AND BLACKBERRIES, I WANT YOU TO 11:13:48 KNOW I'M ON A RAMPAGE ABOUT PEOPLE TALKING AND TEXTING WHILE 11:13:53 DRIVING A PUS, TRAIN, OR PLANE AND AN AUTOMOBILE. 11:13:57 IT'S A MENACE TO SOCIETY AND WE RECENTLY EXERCISED AUTHORITY TO 11:14:02 BAN TRUCK DRIVERS FROM PARTICULARING WHILE DRIVING. 11:14:15 THE THREE RECALLS INVOLVING TOYOTA ARE AMONG THE LARGEST IN 11:14:20 AUTOMOBILE HISTORY AFFECTING MORE THAN SIX MILLION PEOPLE IN 11:14:22 THE COUNTRY. I WOULD LIKE TO SAY A WORD TO 11:14:25 CONSUMERS. IF YOU NOTICE THE GAS PEDAL OR 11:14:28 BRAKE IS NOT RESPONDING AS IT NORMALLY WOULD, CONTACT YOUR 11:14:32 TOYOTA DEALER NOW. RECENTLY THEY INVOLVED THREE 11:14:35 ISSUES. ONE, ACCELERATOR, PEDAL 11:14:39 ENTRAPMENT BY FLOOR MATS THAT LEAD TO UNCONTROLLED 11:14:42 ACCELERATION AT HIGH SPEEDS AND IT'S IMPORTANT TO TAKE YOUR 11:14:45 FLOOR MATS OUT OF THE DRIVER'S SIDE UNTIL YOUR CAR HAS BEEN 11:14:50 REPAIRED FOR THIS PROBLEM BY AN AUTHENTIC TOYOTA DEALER. 11:14:55 2nd, ACCELERATOR PEDALS STICKING OR RETURNING SLOWLY AFTER BEING 11:15:01 DEPRESSED IF THE PEDAL IS HARDER OR SLOWER THIS IS KNOWN AS A 11:15:12 STICKY PEDAL. THE PEDAL HAS THESE SYMPTOMS, 11:15:14 CONTACT THE TOYOTA DEALER IMMEDIATELY. 11:15:18 THE GAS PEDAL BECOMES STUCK FOR ANY REASON, PUT THE CAR IN 11:15:21 NEUTRAL AND BRING IT TO A STOP IN A SAFE PLACE AND CALL YOUR 11:15:26 DEALER. FINALLY WITH THE TOYOTA PRIUS 11:15:29 FOR MODEL YEAR 2010 AND THE LEXUS HS 250, IF YOU EXPERIENCE 11:15:35 A CHANGE IN YOUR CAR'S BRAKING PERFORMANCE, CONTACT YOUR TOYOTA 11:15:38 DEALER. I WANT EVERYONE TO KNOW THAT THE 11:15:43 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS THE MOST 11:15:49 EFFECTIVE DEFECT INVESTIGATION PROGRAM IN THE WORLD. 11:15:57 THEIR JOB IS TO INVESTIGATE COMPLAINTS AND LOOK FOR DEFECTS. 11:16:04 NITSA RECEIVES 30,000 COMPLAINTS FROM CONSUMERS AND TAKE EVERY 11:16:08 ONE SERIOUSLY. WE LOOK AT EVERY ONE. 11:16:11 WE DON'T SET ANY OF THEM ASIDE. WE REVIEW THEM QUICKLY TO MAKE 11:16:18 SURE THAT IF THERE IS A SERIOUS ISSUE, WE WILL LOOK AT IT. 11:16:29 THEY RESULTED IN 524 RECALLS INVOLVING 23 MILLION VEHICLES. 11:16:38 # THE INVESTIGATIONS OPENED, THERE 11:16:54 34 OPENING DEFECT INVESTIGATIONS. 11:16:58 FIVE OF WHICH INVOLVE TOYOTA. EVERY STEP OF THE WAY, OFFICIALS 11:17:01 HAVE PUSHED TO TOYOTA TO TAKE CORRECTIVE ACTION SO THAT 11:17:04 CONSUMERS WILL BE SAFE. UNHAPPY WITH TOYOTA'S 11:17:08 RESPONSIVENESS TO OUR SAFETY CONCERNS, THE ACTING 11:17:14 ADMINISTRATOR AND TWO ASSOCIATES FLEW TO JAPAN IN DECEMBER OF' 09 11:17:20 TO CLARIFY FOR MANAGEMENT WHAT THE LEGAL OBLIGATIONS ARE TO 11:17:25 SAFETY DEFECTS IN VEHICLES SOLD HERE IN AMERICA. 11:17:28 IN JANUARY OUR NEW ADMINISTRATOR THEY TOLD IN NO UNCERTAIN TERMS 11:17:42 WE EXPECT PROMPT ACTION FOLLOWING DISCLOSURE OF THE 11:17:45 STICK PEDAL PROBLEM. THEY ANNOUNCED THAT RECALL TWO 11:17:48 DAYS LATER. I HAVE BEEN ON THE PHONE WITH 11:17:52 MR. TOYOTA FROM HERE TO JAPAN AND I'M SO PLEASED HE ACCEPTED 11:17:57 THE INVITATION TO APPEAR BEFORE THE COMMITTEE. 11:18:02 WITH POTENTIAL DEFECTS ON THE ROAD, THEY PRESSED HARD TO 11:18:06 EXPEDITE THESE. IF THEY HAD OPENED A FORMAL 11:18:10 INVESTIGATION AND TOYOTA HAD RESISTED A RECALL, THAT WOULD 11:18:13 HAVE CONSUMED AN ENORMOUS AMOUNT OF TIME EXTENDING THE PERIOD IN 11:18:18 WHICH OWNERS ARE AT RISK. BY ENGAGING TOYOTA DIRECTLY AND 11:18:22 PERSUADING THE COMPANY TO TAKE ACTION, THE AGENCY AVOIDED A 11:18:26 LENGTHY INVESTIGATION THAT WOULD HAVE DELAYED FIXES FOR A YEAR OR 11:18:30 MORE. LAST WEEK I ANNOUNCED WE ARE 11:18:32 INVESTIGATING WHETHER TOYOTA ACTED QUICKLY ENOUGH IN 11:18:35 REPORTING THE DEFECTS AS WELL AS WHETHER THEY TOOK APPROPRIATE 11:18:39 ACTION TO PROTECT CONSUMERS. WE ASKED THEM TO TURN OVER A 11:18:43 WIDE RANGE OF THE DOCUMENTS THAT WILL SHOW US WHEN AND HOW THEY 11:18:46 LEARNED ABOUT THE SAFETY PROBLEMS. 11:18:50 NH TSA WILL ENSURE THEY WILL DO ALL THEY PROMISED TO MAKE 11:18:54 VEHICLES AND WE WILL CONTINUE TO INVESTIGATE ALL POSSIBLE CAUSES. 11:18:59 WHILE THE RECALLS ARE IMPORTANT STEPS IN THAT DIRECTION, WE 11:19:02 DON'T MAINTAIN THAT THEY ANSWER EVERY QUESTION. 11:19:05 SOME BELIEVE THAT ELECTROMAT MAGNETIC INTERFERENCE HAS A 11:19:13 DANGEROUS EFFECT ON THESE VEHICLES, ALTHOUGH WE ARE NOT 11:19:17 AWARE OF ANY INCIDENTS PROVEN TO CAUSE SUCH INTERFERENCE, NH TSA 11:19:22 IS DOING A THOROUGH REVIEW. WE WILL GET IN THE WEEDS ON 11:19:26 THIS. WE WILL DO EVERYTHING WE CAN TO 11:19:29 FIND OUT IF ELECTRONICS ARE A PART OF THE PROBLEM. 11:19:34 IF WE FIND A PROBLEM, WE WILL MAKE SURE IT'S RESOLVED. 11:19:39 I HAVE BEEN ASSURES BY MR. TOYOTA THAT IT TAKES U.S. 11:19:45 SAFETY CONCERNS VERY SERIOUSLY AND THAT SAFETY IS THE COMPANY'S 11:19:50 TOP PRIORITY. WE WILL HOLD HIM TO THAT. 11:19:53 FINALLY, I WANT TO REMIND EVERYONE, THERE IS A REASON WE 11:19:57 INVESTIGATE SAFETY DEFECTS AND PUSH AUTO MAKERS TO DO THE RIGHT 11:20:00 THING. I LISTENED TO THE 911 TAPE OF 11:20:03 THE SAYLOR FAMILY'S HARROWING LAST MOMENTS. 11:20:09 A HIGHWAY PATROL DIED WITH HIS WIFE AND DAUGHTER AND HIS 11:20:12 BROTHER-IN-LAW WHEN THE ACCELERATOR GOT STUCK IN THE 11:20:15 LEXUS THEY WERE DRIVING CRASHED AT MORE THAN 120 MILES PER HOUR. 11:20:19 LAST EVENING AFTER I FINISHED MY TESTIMONY BEFORE THE ENERGY AND 11:20:24 COMMERCE COMMITTEE, I MET WITH THE FAMILY TO OFFER OUR SYMPATHY 11:20:28 AND ANY ASSISTANCE WE CAN GIVE TO THEM. 11:20:32 IT WAS A HORRIBLE TRAGEDY AND I HOPE NO OTHER FAMILY HAS TO 11:20:37 ENYOU DUR THAT. MR. CHAIRMAN, LET ME CONCLUDE BY 11:20:41 SAYING THIS. I WAS SWORN IN ON JANUARY 23rd 11:20:44 OF '09. I TRAVELLED TO 36 STATES IN 80 11:20:52 CITIES. EVERYWHERE I HAVE GONE I TALKED 11:20:56 ABOUT SAFETY. THAT HAS TO BE OUR NUMBER ONE 11:20:59 PRIORITY WHETHER IT'S IN TRAINS, PLANES, OR AUTOMOBILES. 11:21:03 YOU LOOK AT ANY STATEMENT I HAVE MADE OR SPEECH I HAVE GIVEN, 11:21:07 THERE IS ALWAYS SOMETHING ABOUT SAFETY IN IT. 11:21:11 WE WILL NOT SLEEP AT DOT AND WORK 24-7 AT NH TSA THAT EVERY 11:21:20 TOYOTA IS SAFE TO DRIVE. WE WILL CONTINUE TO MAKE SAFETY 11:21:24 OUR NUMBER ONE PRIORITY AT DOT AND AT NH TSA. 11:21:29 I LOOK FORWARD TO YOUR QUESTIONS. 11:21:30 >> THANK YOU VERY MUCH. SAFETY IS SO IMPORTANT. 11:21:38 LET ME RAISE A COUPLE OF QUESTIONS WITH YOU QUICKLY. 11:21:42 THE COMMITTEE REVIEWED THOUSANDS OF COMPLAINTS SENT TO NH TSA 11:21:51 REGARDING TOYOTA VEHICLES. BEFORE THE CRASH THAT KILLED 11:21:54 MEMBERS OF THE SAYLOR FAMILY IN AUGUST OF 2 THOUSAND 9, THERE 11:22:00 WERE ALMOST 2,000 COMPLAINTS AT A TIME OF THE TOYOTA'S FLOOR MAT 11:22:06 RECALL IN 2007. THE AGENCY HAD RECEIVED MORE 11:22:10 THAN 1,300 COMPLAINTS. WHY DID IT TAKE THEM SO LONG TO 11:22:18 ACT? >> MR. CHAIRMAN, I WOULD SAY 11:22:21 THIS. I HAVE BEEN IN THE JOB MORE THAN 11:22:24 A YEAR. PRIOR TO MY TIME WHICH WOULD 11:22:28 HAVE BEEN PRIOR TO JANUARY 23rd OF '09, IF THERE ISSUES I CAN'T 11:22:35 ANSWER, I WILL GET BACK TO YOU FOR THE RECORD. 11:22:37 I WILL TELL YOU THIS, 30,000 COMPLAINTS COME TO NH TSA EVERY 11:22:42 YEAR AND WE LOOK AT EVERY ONE OF THEM. 11:22:46 WE THINK EVERY ONE IS IMPORTANT. SOME COME FROM PEOPLE WHO ARE 11:22:50 DRIVING CARS AND SOME COME FROM THE INDUSTRY. 11:22:52 WE LOOK AT WHAT'S GOING ON FROM STAKEHOLDERS AND PEOPLE IN THE 11:22:59 AUTOMOBILE BUSINESS. SOMETIMES THEY FILE COMPLAINTS 11:23:02 WITH US. THEN WHEN WE SEE A PATTERN, WE 11:23:06 WILL DO AN INVESTIGATION OR WE WILL LOOK AT IT. 11:23:09 IF OUR INVESTIGATION SHOWS THERE NEEDS TO BE A RECALL, IT WILL BE 11:23:16 DONE. THAT HAS BEEN THE WORK OF NH 11:23:20 TSA. WITH RESPECT TO YOUR SPECIFIC 11:23:23 QUESTION DURING THAT TIME PERIOD, WHAT I WOULD LIKE TO DO 11:23:26 IS PUT IT ON THE RECORD AFTER I REALLY CAN GET THE FACTS FOR 11:23:29 YOU. >> THANK YOU VERY MUCH. 11:23:40 AGAIN, I KNOW YOU RECOGNIZE HOW IMPORTANT SAFETY IS. 11:23:48 DO YOU THINK IT'S TO DRIVE A TOYOTA TODAY? 11:23:51 >> I WILL SAY THIS. IF PEOPLE CHECK OUR WEBSITE WE 11:23:57 HAVE LISTED EVERY TOYOTA THAT IS UP FOR RECALL. 11:24:03 I WANT ANYBODY THAT HAS ONE OF THOSE CARS TO TAKE IT TO THEIR 11:24:07 DEALER AND TO MAKE SURE THAT IT GETS FIXED. 11:24:19 WE AGAIN ARE GOING TO WORK 24-7 AND WE ARE GOING TO CONTINUE 11:24:26 UNTIL EVERY TOYOTA IS SAFE FOR THEIR CUSTOMERS TO DRIVE. 11:24:34 >> THANK YOU FOR YOUR COMMIT AND DEDICATION IN THIS REGARD. 11:24:37 I YIELD TO THE RANKING MEMBER. >> THIS IS ON, MR. ISSA. 11:24:44 >> IT DROPPED OFF ALL OF A SUDDEN. 11:24:46 IT HAS NOTHING TO DO WITH YOU, I'M SURE. 11:24:49 MAYBE THEY CAN GIVE ME THE OTHER ONE. 11:24:50 >> SWITCH TO THE OTHER MIKE. >> VERY PRESIDENTIAL. 11:25:08 I WILL PICK UP WHERE THE CHAIRMAN LEFT OFF. 11:25:11 SOME COMPANIES INCLUDING TOYOTA, YOU CAN GO TO THE WEBSITE AND 11:25:15 PUNCH IN THE ONE PIECE OF INFORMATION WITH ANYONE IN 11:25:18 POSSESSION OF A CAR CAN SEE. AT YOUR WEBSITE, YOU HAVE TO PUT 11:25:22 IN MAKE AND MODEL. YOU HAVE TO KNOW YOUR TRIM 11:25:26 LEVEL, ET CETERA, ETC. CAN YOU COMMIT TO US THAT IN THE 11:25:30 FORESEEABLE FUTURE, THE DEPARTMENT OF TRANSPORTATION 11:25:33 COULD AND IF YOU AGREE, SHOULD HAVE EVERY AUTOMOBILE SOLD IN 11:25:39 AMERICA, A VIN NUMBER ON FILE SO IF SOMEBODY PUNCHES IN THE 11:25:43 NUMBER, THEY CAN SEE EVERY RECALL AND EVERY PIECE OF SAFETY 11:25:46 INFORMATION THAT YOU KNOW OF THAT NEEDS TO BE APPLIED TO THAT 11:25:50 VEHICLE? >> GIVEN THE RIGHT AMOUNT OF 11:25:53 TIME, I WILL COMMIT TO YOU THAT WE SHOULD MAKE THAT INFORMATION 11:25:58 AVAILABLE. IN THE SIMPLEST POSSIBLE WAY FOR 11:26:02 EVEN PEOPLE WHO ARE MAYBE DON'T HAVE ACCESS TO A COMPUTER OR 11:26:06 WHATEVER. WE SHOULD MAKE IT AVAILABLE TO 11:26:08 PEOPLE. >> I APPRECIATE THAT AND A LOT 11:26:10 OF MY QUESTIONS FROM OPENING REMARKS ARE ABOUT WHAT DO WE DO 11:26:15 PROACTIVELY FOR THE FUTURE. WE WILL ALL HAVE QUESTIONS FOR 11:26:18 YOU AND NH TSA AND FOLLOW-UP QUESTIONS ABOUT THE PAST, BUT 11:26:23 LET ME GO TO ANOTHER ONE. CURRENTLY NH TSA AS I UNDERSTAND 11:26:30 IT HAS 41, 42, 49 IN THE HIGH YEAR THOUSAND INQUIRIES OR 11:26:36 COMPLAINTS. THE AUTO COMPANIES HAVE THEIRS. 11:26:39 IF AN AUTO COMPANY REACHES A THRESHOLD THEY HAVE A 11:26:42 REQUIREMENT TO SEND THAT IN THE U.S. 11:26:44 IF A COMPANY HAS A RECALL IN ANOTHER COUNTRY, THEY HAVE AN 11:26:56 OBLIGATION TO INFORM NH TSA. YOU ARE FAMILIAR ABOUT THE OPEN 11:27:01 SOURCE SYSTEM IS. CAN YOU ME TODAY THAT THERE IS 11:27:06 ANY TECHNOLOGICAL REASON OR COMMON SENSE REASON THAT IN FACT 11:27:12 WE SHOULD NOT, THE UNITED STATES GOVERNMENT H TSA SHOULD NOT SEE 11:27:19 ALL CLAIMS FROM ALL OF THE FIRST WORLD PARTNERS AND OBVIOUSLY TO 11:27:23 BE ARRANGED AND ALL THE COLLATERAL MATERIAL FROM THE 11:27:26 PEOPLE WHO WANT TO SELL VEHICLES IN THE COUNTRY. 11:27:29 MEANING, IS THERE A REASON YOU HAVE TO WAIT UNTIL THERE IS A 11:27:33 RECALL TO GET INFORMATION? GREAT BRITAIN CAN HAVE A RECALL, 11:27:37 BUT THEY HAD A SIMILAR STICKY PEDAL THEY DIDN'T SEE AS 11:27:41 SIGNIFICANT BECAUSE THEY THOUGHT IT ONLY HAPPENED THERE ON RIGHT 11:27:44 HAND DRIVE CARS. YET WHEN WE WERE GETTING A SMALL 11:27:50 AMOUNT, HAD HE HAD THAT INFORMATION LIKE ANY OPEN SOURCE 11:27:56 BRINGING TOGETHER OF INFORMATION, AN AGENCY OF THE 11:27:59 GOVERNMENT WOULD HAVE BEEN ABLE TO HAVE AN ALERT THAT WOULD HAVE 11:28:02 BEEN SENT TO THE AUTO COMPANY FOR THEIR ATTENTION AND 11:28:05 RESPONSE. DO YOU SEE ANY REASON THAT'S NOT 11:28:08 SOMETHING THAT SHOULD BE PART OF A GREAT ORGANIZATION RATHER THAN 11:28:13 A GOOD ONE? >> I AGREE IT SHOULD BE PART OF 11:28:16 IT. WE BELIEVE IN TRANSPARENCY. 11:28:19 I BELIEVE INFORMATION CAN BE POWERFUL. 11:28:20 THE MORE THE BETTER. >> THE TOYOTA BLADE SOLD IN 11:28:35 JAPAN THAT HAD A PEDAL SIMILAR TO THIS EVEN THOUGH IT WAS NOT 11:28:39 AN AUTOMOBILE IN WHICH THEY SHORTENED THE PEDAL BECAUSE OF 11:28:43 ENTRAPMENT. ARE YOU FAMILIAR WITH THAT? 11:28:45 >> I AM NOT FAMILIAR WITH THAT. >> I WOULD APPRECIATE IT IF YOU 11:28:51 WOULD RESPOND FOR THE RECORD OF HOW IN THE FUTURE A SIMILAR 11:28:55 AUTOMOBILE IN ANOTHER COUNTRY THAT DOES HAVE A CHANGE CAN HAVE 11:28:59 A CHANGE CONSISTENT IN THE U.S. AS I SAID IN OPENING REMARKS 11:29:05 WEEK TOOK SHORTCUTS WITH NH TSA'S ACQUIESCENCE AND 11:29:11 AWARENESS, WE TOOK A SHORTCUT ON THE MAP WHILE IN JAPAN THEY 11:29:16 REDUCE AND INCREASED THE CLEARANCE ON THE PEDAL. 11:29:20 THE DIFFERENCE IS THE DIFFERENCE THIS SAN DIEGO OF THAT FAMILY 11:29:22 STILL BEING ALIVE. THAT'S PROBABLY THE MOST 11:29:27 IMPORTANT QUESTION I HAVE FOR YOU AND CONSISTENCY AND 11:29:36 DISSIMILAR PARTS AROUND THE WORLD. 11:29:40 IT IS WITHIN EXISTING LAW TO BRING ABOUT A REAL CHANGE SO 11:29:44 THIS WILL NOT HAPPEN AGAIN? >> I TAKE YOUR POINT AND IT'S A 11:29:48 GOOD POINT. YOU HAVE MY COMMITMENT. 11:29:50 >> I APPRECIATE THAT. IF AT SOME TIME IN THE FUTURE 11:29:54 YOU SEE THE POTENTIAL NEED FOR MORE AUTHORITY OR MORE SPECIFIC 11:29:59 LEGISLATION THAT YOU WOULD ALSO COME BACK TO US? 11:30:02 >> ABSOLUTELY. >> THANK YOU AND THANK YOU 11:30:04 AGAIN. I YIELD BACK. 11:30:05 >> THANK YOU THE GENTLEMEN FROM CALIFORNIA. 11:30:07 I YIELD FIVE MINUTES TO THE GENTLEMEN FROM PENNSYLVANIA. 11:30:20 >> I ASSUME THIS IS GOING TO BE MORE UPLIFTING SESSIONS THAT YOU 11:30:28 HAD SINCE IN OFFICE. I THINK THIS IS PROBABLY THE 11:30:32 GREATEST ATTENDANCE I HAVE SEEN IN THE HALL WAYS AND OF THE 11:30:35 PRESS. >> I WOULD AGREE. 11:30:38 >> OBVIOUSLY WE STRUCK A NERVE. THIS COMMITTEE AND THE 11:30:42 OCCURRENCE THAT HAPPENED IN CALIFORNIA. 11:30:43 I WANTED TO TAKE A MOMENT TO CONGRATULATE YOU. 11:30:57 EXACTLY WHAT THIS COMMITTEE AND THE OFFICE EXPECTED YOU TO DO. 11:31:01 EARLIER I WAS WATCHING THE RANKING MEMBER ON CNBC AND HE 11:31:09 MADE AN INTERESTING PROPOSAL TO WHAT HE DISCUSSED WITH YOU 11:31:14 TODAY. MAYBE IF THAT PROPOSAL COULD BE 11:31:18 ENCAPSULATED WITH GREATER AUTHORITY, BUT EVEN ABOVE AND 11:31:20 BEYOND THE AUTO INDUSTRY THAT WE FIND A WAY SINCE WE ARE IN A 11:31:27 GLOBAL MARKET PLACE FIND THIS AND FOR AVAILABILITY TO NOT ONLY 11:31:37 THE CITIZENS OF THE UNITED STATES, BUT CITIZENS OF THE 11:31:39 WORLD. I COMMENTED TO THE STAFF AFTER I 11:31:42 SAW THIS, BUT I LOVE PORTUGUESE SARDINES. 11:31:52 IF SOMEONE DIED FROM POT LIMP, I HAVE NO WAY IN THE WORLD OF 11:31:55 KNOWING WHERE TO GO OR WHO TO INFORM. 11:31:59 IT'S TIME NOW THAT WE THINK ABOUT THE FACT THAT WE ARE NOT 11:32:05 IN A IF ANYTHING PRODUCTIVE CAN COME OUT OF THE HEARING, IT'S 11:32:16 THAT WE TAKE THIS POSITIVE ACTION. 11:32:20 I WILL JOIN YOU IN THE SPONSORSHIP OF AUTHORIZATION FOR 11:32:23 THE AUTO INDUSTRY AND ALL INTERNATIONAL INDUSTRIES TO GET 11:32:26 THIS TYPE OF REPOSITORY INFORMATION MADE AVAILABLE AND 11:32:30 UTILIZE THE INTELLIGENCE NETWORK AND INFORMATION TO THIS COUNTRY 11:32:34 TO COMMERCIALIZING IT, IF WE WILL. 11:32:37 TO YOU, MR. SECRETARY, THIS HAS BEEN A TRAGIC EXPERIENCE I THINK 11:32:47 FOR TOYOTA. I'M SURE IF I WERE A STOCKHOLDER 11:32:55 OR JAPANESE THAT THE PRIDE THEY HAVE WITH THAT COMPANY IN THEIR 11:32:59 50 YEARS OF EXPERIENCE, THIS IS SOMETHING NO ONE WANTED TO SEE 11:33:03 HAPPEN. WHAT WE HAVE TO DO IS HANDLE 11:33:07 THIS SITUATION WITH A FORM OF CLASS, IF YOU WILL. 11:33:13 I HOPE WE DON'T UTILIZE IT TO BEAT UP OR E OR OVEREXEMPTION 11:33:21 SIZE OR EXACERBATE FEELINGS THAT MAY OCCUR BETWEEN THE TWO 11:33:25 NATIONS. >> WE HAVEN'T DONE THAT. 11:33:27 WE HAVE ALL DONE IT. ALL OF YOU FEEL THIS WAY. 11:33:29 WE HAVE DONE IT UNDER THE UMBRELLA OF SAFETY FOR PEOPLE 11:33:32 WHO OWN TOYOTAS. >> THAT'S A GOOD MESSAGE. 11:33:36 IF WE CAN PUT IT OUT THERE, WE WANT TO DRIVE FROM THE THEORY 11:33:39 AND THE FACT IS THE BEST PURPOSES IN THE WORLD TO 11:33:45 ACCOMPLISH THINGS IN THE FUTURE SO THAT IT DOESN'T OR WON'T 11:33:51 HAPPEN AGAIN. WE DON'T WANT TO EXAGGERATE 11:33:54 SITUATIONS THAT GO BEYOND REASONABLENESS. 11:33:57 I THANK YOU FOR YOUR TESTIMONY AND THANK YOU FOR YOUR ATTEND 11:34:00 ARNS AND I PLEDGE TO YOUING TO W THE RANKING MEMBER THAT WE WILL 11:34:05 TAKE SUCH ACTION AS POSSIBLE TO SEE A POSITIVE RESULT. 11:34:08 >> WE WILL WORK WITH YOU ON THAT. 11:34:10 >> THANK YOU VERY MUCH. I RECOGNIZE THE GENTLEMEN FROM 11:34:13 INDIANA, MR. BURTON, FORMER CHAIR OF THIS COMMITTEE. 11:34:16 >> LET ME PREFACE REMARKS BY WELCOMING YOU HERE RAY AND 11:34:19 MR. SECRETARY. WE HAVE BEEN FRIENDS FOR A LONG, 11:34:22 LONG TIME AND KNOW YOU TO BE AN HONORABLE MAN. 11:34:26 THE QUESTIONS HAVE NOTHING TO DO WITH QUESTIONING YOUR INTEGRITY. 11:34:29 I WANT YOU TO KNOW THAT. THERE WAS AN INVITATION MADE TO 11:34:35 MR. STRICKLAND TO TESTIFY AND THERE WAS AN ARTICLE IN THE "LOS 11:34:38 ANGELES TIMES" TODAY THAT INDICATED THAT BECAUSE OF YOUR 11:34:46 REQUEST, MR. STRICKLAND WAS ASKED NOT TO TESTIFY. 11:34:48 IS THERE A REASON FOR THAT? >> LOOK, MR. BURTON, 11:34:52 MR. STRICKLAND HAS BEEN ON THE JOB 40 DAYS. 11:34:58 I HAVE BEEN ON THE JOB 13 MONTHS. 11:34:59 I WILL NOT HAVE THE ADMINISTRATOR APPEAR AND I'M 11:35:05 TAKING RESPONSIBILITY FOR THIS. AS I SAID IN MY TESTIMONY, 11:35:08 SAFETY IS NUMBER ONE. I'M GOING TO BE ACCOUNTABLE. 11:35:11 IF SOMEBODY WANTS TO CRITICIZE NH TSA OR THE DEPARTMENT, I WILL 11:35:18 BE HANDLE. THAT'S MY JOB. 11:35:19 I WILL NOT DUCK IT AND GIVE IT TO SOMEBODY WHO HAS OLDSMOBILE 11:35:23 BEEN ON THE JOB 40 DAYS. WHEN I TALK TO MR. TOWNS AND 11:35:27 MR. ISSA, IT WAS CLEAR THEY WANTED ME TO COME AND I WANTED 11:35:31 TO COME WHEN WE ORIGINALLY TALKED. 11:35:34 I DON'T KNOW HOW THAT CONFUSION OCCURRED. 11:35:36 THAT'S THE REASON FOR IT. >> DON'T GET MAD AT ME, RAY. 11:35:42 THAT WAS THE "LOS ANGELES TIMES". 11:35:46 # >> JUST BECAUSE I RAISED A 11:35:58 DECIBEL IN MY VOICE, DOESN'T MEAN I'M MAD. 11:36:01 >> DON'T GIVE ME THAT STUFF. THERE IS A QUESTION ABOUT 11:36:09 WHETHER OR NOT THERE MIGHT BE A KIND OF A SWEETHEART ARRANGEMENT 11:36:12 WITH THE PEOPLE WHO PRECEDED YOU WORKING AT NH TSA. 11:36:17 THERE A NUMBER OF PEOPLE, AT LEAST TWO EMPLOYEES WHO NOW WORK 11:36:22 FOR TOYOTA. THEY ARE ON THE TOYOTA PAYROLL. 11:36:28 I HAVE THEIR NAMES HERE. ARE YOU FAMILIAR WITH THAT AT 11:36:31 ALL? >> I READ REPORTS THAT WAS AND 11:36:33 WE LOOKED INTO IT. WHAT THE LAW REQUIRES IS THAT IF 11:36:38 YOU HAVE BEEN AN EMPLOYEE AT D.O.T. AND YOU GO TO WORK FOR A 11:36:46 COMPANY THAT DOES WORK WITH D.O.T., YOU CANNOT COMMUNICATE 11:36:53 OR PARTICIPATE IN THE WORK THAT YOU DID WITH THIS COMPANY. 11:36:57 IF YOU GO TO WORK FOR A COMPANY, IF YOU GO TO WORK FOR TOYOTA, 11:37:02 YOU CANNOT COMMUNICATE ON ISSUES YOU DEALT WITH THE D.O.T. 11:37:06 FOR EXAMPLE, IF THOSE EMPLOYEES WORKED AT NH TSA WHICH THEY DID, 11:37:12 THEY CAN'T COME BACK AND BE TALKING ABOUT THESE THINGS. 11:37:15 THEY CAN TALK ABOUT A HIGHWAY PROJECT OR SOMETHING LIKE THAT I 11:37:21 SUPPOSE, BUT HERE'S MY PLEDGE TO ALL OF YOU. 11:37:25 IF ANYBODY KNOWS THERE IS VIOLATIONS, LET ME KNOW. 11:37:28 I WILL REFER TO THE IG. THERE WILL BE AN INVESTIGATION. 11:37:36 THERE HAS BEEN NO MORE HIGHER STANDARDS SET FOR ETHICS THAN 11:37:39 THIS ADMINISTRATION. AT THE FIRST CABINET MEETING, 11:37:43 THE PRESIDENT MADE IT CLEAR. I DON'T WANT ETHICAL PROBLEMS 11:37:47 WITH ANYBODY. >> THIS PRECEDED THE YOU, BUT 11:37:53 CHRISTOPHER NOW TOYOTA'S ASSISTANT MANAGER OF TECHNICAL 11:37:56 AND REGULATORY AFFAIRS DID WORK FOR THE AGENCY AND ACCORDING TO 11:38:01 GENERAL MOTORS, FORD, AND CHRYSLER, THEY DON'T HAVE 11:38:05 ANYBODY WHO FORMALLY WORKED FOR NH TSA WHO WORKED FOR THEM IN 11:38:10 THOSE CAPACITIES. YOU ARE SAYING THESE 11:38:12 GENTLEMEN -- >> THEY CAN WORK FOR TOYOTA, BUT 11:38:16 THEY CANNOT COME BACK AND TALK ABOUT ISSUES THEY WORKED ON. 11:38:19 THEY CAN'T DO THAT. THEY CAN TALK TO PEOPLE IN OTHER 11:38:24 MODES. FAA OR OTHER MODES. 11:38:26 THEY CANNOT COME BACK AND TALK TO OUR FOLKS ISSUES -- 11:38:31 >> THE ONE THING I WOULD SUGGEST IS THAT THE APPEARANCE IS ONE OF 11:38:34 THE THINGS THAT RIGHT NOW I THINK THE PUBLIC IS CONCERNED 11:38:37 ABOUT. A COUPLE OF PEOPLE THAT WORK AT 11:38:40 NH TSA IN A PUBLIC RELATIONS POSITION THEY CAN TALK TO PEOPLE 11:38:46 AT NH TSA AND THE APPEARANCE MAY BE THAT THEY ARE INFLUENCING 11:38:52 DECISION-MAKING GOING ON. >> I AGREE WITH YOU ON THIS, 11:38:55 MR. BURTON. I THINK THIS LAW PROBABLY SHOULD 11:38:57 BE TIGHTENED UP. I REALLY DO. 11:39:00 I AGREE WITH YOU. PERCEPTION IS REALITY. 11:39:02 ANYBODY THAT HAS BEEN IN POLITICS KNOWS THAT. 11:39:06 I TAKE YOUR POINT ON THIS. >> THANK YOU VERY MUCH AND I 11:39:10 STILL LOVE YOU, RAY. >> THANK YOU. 11:39:16 >> THE GENTLEMEN YIELDS BACK? I NOW RECOGNIZE THE GENTLEMEN 11:39:20 FROM MARYLAND. REPRESENTATIVE CUMMINGS. 11:39:23 >> THANK YOU VERY MUCH, MR. CHAIRMAN AND MR. LA HOOD. 11:39:27 IT'S GOOD TO HAVE YOU HERE. ONE OF THE THINGS THAT WE FIND 11:39:33 OURSELVES IN QUITE A DEELEMENTSA HERE. 11:39:36 ON THE ONE HAND WE WANT TO BE CAREFUL ABOUT WHAT WE ARE DOING 11:39:44 HERE. WE DO HAVE ONE OF THE MAIN 11:39:47 TRADING PARTNERS, JAPAN INVOLVED. 11:39:51 WE HAVE A SAFETY OF CITIZENS. MANY CONSTITUENTS WHO SPEND 11:39:58 THOUSANDS UPON THOUSANDS OF DOLLARS TO BUY AN AUTOMOBILE. 11:40:03 THEY HAVE A RIGHT TO EXPECT TO BE SAFE. 11:40:09 TO THAT END THERE WAS VERY TELLING TESTIMONY BEFORE THE 11:40:16 COMMERCE COMMITTEE. WE KNOW YOU WERE THERE AND HEARD 11:40:18 ABOUT IT WHERE THE PRESIDENT OF TOYOTA SALES USA WHEN ASKED 11:40:27 ABOUT THE ISSUE WHETHER IT'S A STICKY PEDAL OR THE MAT PROBLEM, 11:40:33 WHETHER RECALLS IN REGARD TO THOSE ISSUES WOULD SOLVE THE 11:40:38 PROBLEM, HE WAS NOT SURE. ARE YOU FAMILIAR? 11:40:41 >> YES, SIR. I WAS THERE AND I HEARD HIS 11:40:42 TESTIMONY. >> AS I SAT HERE AND LISTENED TO 11:40:47 YOU AND YOU TALKED ABOUT -- YOU SAID GO TO THE WEBSITE AND YOU 11:40:52 SAID IF THEY WERE PEOPLE HAVING CERTAIN PROBLEMS, THEY SHOULD GO 11:40:56 TO THE DEALERSHIP. THEN I HEARD YOU IN ANSWER TO 11:41:00 THE CHAIRMAN'S QUESTION -- I DON'T THINK YOU EVER REALLY 11:41:06 ANSWERED THE QUESTION BECAUSE HE ASKED YOU WHETHER OR NOT YOU 11:41:09 CONSIDERED A TOYOTA TO BE SAFE. YOU ARE OUR SAFETY GUIDE JUST AS 11:41:13 YOU JUST SAID. YOU SAID IT, I DIDN'T. 11:41:15 I BELIEVE YOU ARE CONCERNED ABOUT SAFETY. 11:41:18 THE QUESTION STILL BECOMES FOR OUR CONSTITUENTS, YOU AS OUR 11:41:22 SAFETY GUIDE. >> LET ME ANSWER YOU VERY 11:41:26 DIRECTLY. FOR THOSE CARS THAT ARE LISTED 11:41:27 ON OUR WEBSITE, D.O.T..KOF FOR RECALL TO GO BACK, THOSE ARE NOT 11:41:34 SAFE. WE DETERMINED THEY ARE NOT SAFE. 11:41:39 >> ALL RIGHT. >> WE BELIEVE WE NEED TO LOOK AT 11:41:41 THE ELECTRONICS IN THESE CARS. BECAUSE PEOPLE HAVE TOLD US THEY 11:41:46 BELIEVE THERE IS AN ISSUE AND WE ARE GOING TO DO THAT. 11:41:48 WE WILL HAVE A COMPLETE REVIEWO THE ELECTRONICS. 11:41:52 FOR NOW, ANY CAR THAT'S ON THE WEBSITE NEEDS TO GO BACK TO THE 11:41:57 DEALER TO BE FIXED WOMEN DETERMINED THOSE ARE NOT SAFE 11:41:59 BECAUSE OF A FLOOR MAT PROBLEM, BECAUSE OF A STICKY PEDAL. 11:42:05 >> IT'S THE AND THAT I'M WONDERING ABOUT. 11:42:08 IN OTHER WORDS, YOU JUST SAID YOU DIDN'T CONSIDER THOSE SAFE, 11:42:11 BUT AGAIN WE HAD THEM SAYING YESTERDAY THAT -- I'M NOT TRYING 11:42:17 TO ATTACK YOU. >> I'M NOT OFFENDED BY ANY OF 11:42:20 THIS. COME ON. 11:42:21 I'M NOT. >> WE NEED TO BE CLEAR. 11:42:23 WE HAVE PEOPLE WHO ARE DRIVING THESE CARS EVERY DAY. 11:42:27 I'M WONDERING, DO YOU BELIEVE THAT -- IT SOUNDS LIKE YOU DO, 11:42:32 THERE IS SOMETHING BEYOND JUST THOSE TWO THINGS AS MR. LENTS OF 11:42:38 TOYOTA USA TESTIFIED YESTERDAY. ONE MORE QUESTION. 11:42:45 IF THOSE AUTOMOBILES ARE NOT ON THE RECALL LIST BECAUSE THAT'S 11:42:51 WHAT I'M GOING TO WONDER ABOUT. WHAT ARE THEY SUPPOSED TO DO? 11:42:54 >> THERE PEOPLE WHO BELIEVE THAT THERE ELECTRONICS PROBLEMS WITH 11:42:59 TOYOTA. THAT'S THE REASON WE ARE GOING 11:43:00 TO DO A REVIEW. FOR NOW, WE DON'T HAVE EVIDENCE 11:43:07 RIGHT NOW TO SAY CONCLUSIVELY THAT THERE THESE ELECTRONICS 11:43:11 PROBLEM WHERE IS WE WILL GET INTO IT AND GET IN THE WEEDS. 11:43:14 THERE WERE PEOPLE IN THE COMMITTEE THAT HAD SOME STUDIES 11:43:18 THAT SHOWED THAT THERE WERE ELECTRONICS PROBLEMS. 11:43:22 WE WANT THAT INFORMATION. THE ONLY THING I WILL SAY TO THE 11:43:27 TOYOTA DRIVERS F YOUR CAR IS LISTED, TAKE IT TO THE DEALER 11:43:30 AND GET IT FIXED. PLEASE KNOW THAT WE ARE GOING TO 11:43:33 LOOK AT OTHER ISSUES BECAUSE WE HAD COMPLAINTS ABOUT THE 11:43:37 ELECTRONICS. >> DO WE HAVE ENOUGH PERSONNEL 11:43:39 TO DO THAT? >> YES, SIR. 11:43:41 I WILL TELL YOU THIS. THE PRESIDENT IN HIS BUDGET 11:43:46 PROPOSED 66 NEW EMPLOYEES FOR NH TSA. 11:43:50 WE HAVE 125 ENGINEERS AND WE DO HAVE ELECTRICAL ENGINEERS ALSO. 11:43:56 THE ANSWER IS THE PRESIDENT HAS PROPOSED IN OUR BUDGET 66 NEW 11:44:02 EMPLOYEES FOR NTHSA. >> WHEN YOU TALKED ABOUT LOOKING 11:44:06 AT PROBLEMS, YOU SAID WHEN YOU SEE A PATTERN, CAN YOU TELL US 11:44:09 WHAT A PATTERN IS? IN OTHER WORDS, YOU SAID IF YOU 11:44:12 SEE A PATTERN, YOU TAKE THE NEXT STEP. 11:44:15 >> I WOULD SAY IF WE GET, I DON'T KNOW, 50 COMPLAINTS ON AN 11:44:22 AUTOMOBILE. SAY WE GET 10 COMPLAINTS, WE 11:44:24 LOOK AT THOSE SERIOUSLY. IF THOSE 10 COMPLAINTS APPEAR TO 11:44:28 BE SERIOUS, WE WILL BEGIN TO LOOK INTO IT. 11:44:31 >> THANK YOU. I SEE MY TIME EXPIRED. 11:44:34 >> THANK YOU GENTLEMEN FROM MARYLAND. 11:44:36 I NOW RECOGNIZE THE GENTLEMEN FROM FLORIDA, CONGRESSMAN MICA. 11:44:42 >> MR. CHAIRMAN, WHEN I RECEIVED THE NOTICE FOR TODAY'S HEARING, 11:44:48 THIS IS FROM THE COMMITTEE AND THIS SAYS THE PANEL INCLUDES 11:44:54 DAVID STRICKLAND, THE ADMINISTRATOR OF NH TSA. 11:44:58 HE HAS ONLY BEEN ON THE JOB FOR A LIMITED NUMBER OF DAYS, BUT 11:45:03 IT'S IMPORTANT HE TESTIFY. I WOULD ASK CONSENT THAT HE BE 11:45:07 ALLOWED TO TESTIFY AND BE SWORN IN AS A WITNESS. 11:45:14 >> IT WAS CHAINED EARLIER THAT THE SECRETARY INDICATED THE FACT 11:45:18 THAT THE DECISION WAS MADE, HE WAS ON THE JOB 40 DAYS. 11:45:21 THAT'S IT IS REASON HE IS NOT HERE. 11:45:23 THEY ASSURES US THAT THE DECISION IN TERMS OF THE FINAL 11:45:26 DECISION WAS HIS AND HE IS PREPARED TO ASSUME THAT 11:45:31 RESPONSIBILITY. ONCE HE SAID THAT, I BECAME 11:45:33 COMFORTABLE WITH IT. IF HE IS GOING TO ASSUME THE 11:45:38 RESPONSIBILITY, THEN OF COURSE WHEN WE DISCUSSED IT WITH THE 11:45:41 RANKING MEMBER, WE ACCEPTED THAT AND OF COURSE I THINK WE SHOULD 11:45:45 MOVE FORWARD. >> I DO UNDERSTAND THAT HE IS 11:45:49 HERE AND HE IS AVAILABLE. I NEVER MET HIM BEFORE, BUT I 11:45:54 READ HIS RESUME. THIS IS FROM THE DEPARTMENT 11:46:00 WEBSITE AND SAID HIS WORK INCLUDED -- HE WAS WITH THE 11:46:04 SENATE COMMITTEE ADVISING THE COMMERCE COMMITTEE MEMBERS LED 11:46:08 TO INCLUSION WITH SEVERAL SAFETY MANDATES INCLUDING THE 11:46:13 ELECTRONIC STABILITY CONTROL MANDATE FOR EVERY PASSENGER 11:46:16 VEHICLE. HE DOES HAVE A CERTAIN AMOUNT OF 11:46:19 EXPERTISE. IF WE LOOK AT THE SAFETY OF 11:46:23 EQUIPMENT, I THINK IT APPEARS HE NOT ONLY IS KNOWLEDGEABLE, BUT 11:46:29 ALSO HAD EXPERIENCE IN PASSING LEGISLATION OR INFLUENCING 11:46:34 REGULATION IN THAT REGARD. I CAN WITHDRAW MY REQUEST, BUT 11:46:39 AGAIN I'M DISAPPOINTED THAT HE IS NOT A WITNESS. 11:46:45 I WAS LED TO BELIEVE AGAIN THAT HE WAS ON THE WITNESS STAND. 11:46:48 >> WOULD THE GENTLEMEN YIELD? >> I DON'T WANT TO GET OUT -- 11:46:54 >> I WILL BE BRIEF. MR. CHAIRMAN, WE ARE 11:46:58 ANTICIPATING HAVING ANOTHER PANEL IN A WEEK OR TWO. 11:47:00 WOULD YOU AGREE TO WORK WITH US ON THE POSSIBLE INCLUSION 11:47:07 BECAUSE WE WILL BE CALLING PROBABLY BUSH ADMINISTRATION 11:47:10 PEOPLE AND WE CAN SEE THE POTENTIAL OF THAT AT THE END OF 11:47:13 THIS HEARING. >> I DON'T HAVE A PROBLEM WITH 11:47:15 THAT AT ALL. LET'S FACE IT, WHAT WE ARE 11:47:18 TALKING ABOUT HAPPENED ON THE OTHER WATCH. 11:47:21 OF COURSE WE NEED TO RECOGNIZE THAT. 11:47:23 THE OINT IS THAT I THINK THAT'S WHERE THE EMPHASIS SHOULD BE IN 11:47:27 TERMS OF TRYING TO MAKE CERTAIN WE TALK TO THEM. 11:47:31 I DON'T HAVE A PROBLEM ASKING THEM TO COME FORWARD AND THE 11:47:35 POINT IS THAT WE SHOULD MOVE FORWARD TODAY. 11:47:37 WE HAVE THE SECRETARY WITH US. >> I WILL WITHDRAW MY MOTION IF 11:47:45 IT'S ACCEPTABLE. WE WILL WORK WITH YOU. 11:47:49 IF I'M NOW RECOGNIZED. >> I RECOGNIZE THE GENTLEMEN FOR 11:47:53 FIVE MINUTES. >> NH TSA IS THE PRIMARY 11:48:01 NATIONAL SAFETY TRANSPORTATION SURFACE SAFETY TRANSPORTATION 11:48:07 AGENCY IN THE UNITED STATES AND THE DEPARTMENT OF COMMERCE. 11:48:10 RIGHT, MR. LA HOOD? >> THAT IS CORRECT. 11:48:15 EVERY ACCOUNT I HAVE HEARD TO DATE SAYS THAT NH TSA AND TOYOTA 11:48:22 FAILED. THE CHAIRMAN SAID IT IN OPENING 11:48:24 STATEMENTS YESTERDAY. WE HEARD THAT -- EYELESS I CAN'T 11:48:28 TALK TO THE ADMIB STRAIGHTER TODAY, BUT WE WILL GET AN 11:48:31 OPPORTUNITY TO HEAR FROM HIM. YOU OPENED YOUR COMMENTARY 11:48:38 RIGHTFULLY SO WITH SAFETY BEING YOUR PRIMARY RESPONSIBILITY OF 11:48:42 THE DEPARTMENT OF TRANSPORTATION. 11:48:46 AM I CORRECT? >> THAT'S CORRECT. 11:48:49 >> YOU NOW SET THE POLICY AND YOU HAVE BEEN THERE FOR A NOB OF 11:48:55 MONTHS. I'M SOMEWHAT BAFFLED BY THE 11:48:59 BUDGET REQUEST OF THE ADMINISTRATION FROM 2010 TO 11:49:06 2011. THE BUDGET REQUEST THAT CAME OUT 11:49:08 A FEW DAYS AGO. WITH THE SMALLEST REQUEST FOR 11:49:12 INCREASE IN BUDGET FOR OUR PRIMARY SAFETY AGENCY. 11:49:16 IT WAS ONLY $5 MILLION. YESTERDAY I SAID THE 11:49:22 TRANSPORTATION COMMITTEE THAT MY DAD USED TO SAY IT'S NOT HOW 11:49:25 MUCH YOU SPEND, BUT HOW YOU SPEND IT. 11:49:27 IF YOU SPEND IT WISELY. I THINK YOU KNOW THE CONCERN AND 11:49:33 I HAD ABOUT SAFETY AND MAKING THAT A PRIORITY, PARTICULARLY IN 11:49:38 TRANSPORTATION AND IN NH TSA IN PARTICULAR. 11:49:41 IT'S A RELATIVELY MODEST AMOUNT. IT'S ONE OF THE LOWEST INCREASES 11:49:48 REQUESTED. ANY REASON FOR THAT? 11:49:53 >> WE THINK THAT ADDING 66 NEW PEOPLE AT NH TSA GETS US WHERE 11:49:58 WE NEED TO BE IN TERMS OF STAYING ON TOP OF SAFETY ISSUES. 11:50:02 >> YOU HAVE 632 CURRENT POSITIONS. 11:50:05 HOW MANY FOR THAT. >> DOES MR. STRICKLAND, MR. 11:50:09 STRICKLAND OR YOUR STAFF? >> I'LL BE HAPPY TO GET BACK TO 11:50:12 YOU FOR THE RECORD. >> OKAY. 11:50:14 AND I WOULD LIKE, MR. CHAIRMAN, I ASK UNANIMOUS CONSENT THAT THE 11:50:17 NUMBER OF FTE VACANCIES IN NHTSA BE INCLUDED IN THE RECORD. 11:50:23 >> WITHOUT OBJECTION. >> THE ISSUE OF THE REVOLVING 11:50:28 DOOR OF PEOPLE GOING FROM NHTSA TO THE INDUSTRY, IT WAS STATED 11:50:33 THAT THERE IS NO COMMUNICATIONS, WHAT YOU STATED, ALLOWED BETWEEN 11:50:37 THEM. I HAVE A COPY OF AN E-MAIL IN 11:50:43 2008 BETWEEN SCOTT YOHN OF THE U.S. DEPARTMENT OF 11:50:47 TRANSPORTATION AND THE FORMER NHTSA EMPLOYEE WHO WORKS FOR 11:50:52 TOYOTA. ARE YOU AWARE THAT THIS TYPE 11:50:55 OF -- THESE TYPES OF COMMUNICATIONS WENT BACK AND 11:50:58 FORTH? >> I SAW THAT E-MAIL. 11:51:02 >> BUT YOU DID ADMIT THAT WE SHOULD TIGHTEN THINGS UP. 11:51:06 I THINK THAT WAS YOUR TERM. >> ABSOLUTELY. 11:51:09 >> AND IS THERE NOW A TWO-YEAR BAN OR ONE-YEAR BAN OR ARE YOU 11:51:14 FAMILIAR WITH THE RESTRICTIONS ON THE REVOLVING DOOR -- 11:51:16 >> TWO-YEAR BAN. >> OKAY. 11:51:18 SO I WOULD BE GLAD TO HEAR YOUR RECOMMENDATION AND SUPPORT YOUR 11:51:23 RECOMMENDATION TO TIGHTEN THIS, BUT -- 11:51:26 >> I'LL BE HAPPY TO WORK WITH YOU ON THAT. 11:51:28 >> I WOULD LIKE TO SUBMIT THIS DOCUMENT FOR -- TO THE RECORD TO 11:51:32 SHOW THAT IN FACT THERE HAS BEEN COMMUNICATIONS AND THAT WE DO 11:51:37 NEED TO CLOSE THE REVOLVING DOOR IF IT IS JUST LIMITED TO 11:51:43 TOYOTA -- >> WITHOUT OBJECTION. 11:51:46 >> THANK YOU. IT DOESN'T MATTER. 11:51:49 SO I HAVE SOME DISAPPOINTMENT, AGAIN, I DON'T WANT TO GET IN 11:51:51 ALL THE SPECIFICS OF WHERE THOSE BODIES ARE DIRECTED OR 11:51:56 REQUESTED. IT IS NOT MY INTENTION TO TRY TO 11:51:58 EMBARRASS THE DEPARTMENT. IT IS MY INTENTION TO MAKE 11:52:01 CERTAIN THAT YOU HAVE THE RESOURCES TO DO THE JOB THAT YOU 11:52:05 NEED TO DO TO ENSURE SAFETY. IS THERE ANYTHING ELSE YOU COULD 11:52:11 RECOMMEND TO EITHER OUR TRANSPORTATION COMMITTEE OR 11:52:14 GOVERNMENT REFORM IN THE WAY OF ADDITIONAL AUTHORITY, PERSONNEL 11:52:17 OR RESOURCES THAT WOULD ALLOW -- >> REGARDING SAFETY? 11:52:24 >> YES. >> I WOULD LOVE EVERYBODY TO 11:52:28 SUPPORT THE BILL THAT MR. OBERSER INTRODUCED. 11:52:32 THAT WOULD GIVE US OVERSIGHT OVER TRANSIT SYSTEMS. 11:52:39 AND I WOULD ENCOURAGE EVERY MEMBER OF THIS COMMITTEE TO LOOK 11:52:42 AT THAT BILL. IT IS A GOOD BILL. 11:52:43 AND IT GIVES US THE AUTHORITY WHICH WE'RE PROHIBITED FROM 11:52:46 DOING TO GET INTO THE SAFETY BUSINESS WITH RESPECT TO TRANSIT 11:52:50 ORGANIZATIONS. >> WELL, AND TRANSIT IS ONE 11:52:51 THING AND, AGAIN, FEDERAL AGENCY HAS SAY OVER AMTRAK AND FREIGHT 11:52:58 RAILS, WHICH HAVE PROBABLY THE WORST SAFETY RECORD, BUT IF YOU 11:53:03 TOOK ALL THE FATALITIES IN PUBLIC TRANSIT OVER THE YEARS, 11:53:09 AND COMPARED IT TO THE ONE -- THE INCIDENTS THAT HAVE BEEN 11:53:13 CITED TODAY IN THIS ONE AUTOMOBILE PART, I THINK YOU -- 11:53:19 WE HAVE A PROBLEM. >> MR. MICA, I DON'T MINIMIZE 11:53:22 ANY FATALITY. I THINK ONE FATALITY IS -- ARE 11:53:25 TOO MANY FATALITIES. AND WHEN EIGHT PEOPLE ARE 11:53:28 KILLED, HERE IN WASHINGTON, D.C. ON AMERICA'S METRO SYSTEM, 11:53:31 SOMEBODY NEEDS TO BE LOOKING OUT FOR SAFETY. 11:53:33 WE WANT TO DO THAT. AND I HOPE WE CAN HAVE YOUR 11:53:36 SUPPORT TO DO IT. >> FINALLY, I WOULD VENTURE TO 11:53:40 SAY THERE IS AN ARTICLE IN TODAY'S "POST" THAT IF THEY -- 11:53:44 IF WE HAD -- WE DO HAVE EQUIPMENT THAT COULD PROVIDE 11:53:52 THAT SAFETY. OUR MONEY WOULD BEST BE 11:53:58 EXPENDED -- >> YOU'LL BE HAPPY TO KNOW THE 11:53:59 PRESIDENT PROPOSED $150 MILLION IN THE 2011 BUDGET FOR RAMADA, 11:54:06 FOR EQUIPMENT. >> THE GENTLEMAN'S TIME IS 11:54:12 EXPIRED. >> $5 MILLION FOR THE NHTSA 11:54:13 BUDGET, THE LOWEST AMOUNT I HAVE IN RECENT HISTORY. 11:54:15 THANK YOU. >> GENTLEMAN'S TIME HAS EXPIRED. 11:54:17 I NOW YIELD TO THE GENTLEMAN FROM OHIO. 11:54:20 BUT LET ME JUST SAY BEFORE GO THAT, WE HAVE THREE VOTES AND, 11:54:26 OF COURSE, WE'RE GOING TO CONTINUE THROUGH THE VOTES. 11:54:29 I WANT TO ASSURE YOU OF THAT. SO AS SOON AS YOU VOTE, YOU NEED 11:54:33 TO COME RIGHT BACK BECAUSE WE'RE GOING TO CONTINUE. 11:54:35 WILL THE GENTLEMAN FROM OHIO IS RECOGNIZED FOR FIVE MINUTES. 11:54:39 >> I THANK THE CHAIRMAN. WELCOME, SECRETARY LaHOOD. 11:54:43 >> THANK YOU. >> CBS HAD AN EXCLUSIVE WHERE 11:54:48 THEY WERE ABLE TO GAIN SOME INTERNAL DOCUMENTS THAT SHOWED 11:54:52 THAT TOYOTA REDESIGNED SOFTWARE IN 2005 IN RESPONSE TO 11:55:02 COMPLAINTS THAT CARS WERE ACCELERATING UNEXPECTEDLY. 11:55:03 ARE YOU FAMILIAR WITH THOSE DOCUMENTS? 11:55:05 >> NO, SIR. I'M NOT. 11:55:07 >> IS THIS THE KIND OF ISSUE THAT NHTSA HAS THE ABILITY TO BE 11:55:20 ABLE TO GET INTO? >> YES, SIR. 11:55:23 >> SO ARE YOU INTERESTED IN THAT KIND OF A REPORT? 11:55:26 >> YES, SIR. >> ONE OF THE SUGGESTIONS MADE 11:55:35 IN THAT REPORT IS THAT THE -- BY AN ELECTRICAL ENGINEER -- IS 11:55:40 THAT THERE MAY BE A PROBLEM WITH S 11:55:47 SYSTEMS DESIGN WITH RESPECT TO TOYOTA AND I WOULD ASSUME BY 11:55:53 REFERENCE TO THEIR ELECTRONIC THROTTLE CONTROL. 11:55:58 DOES YOUR DEPARTMENT HAVE THE TECHNICAL ABILITY TO BE ABLE TO 11:56:07 ANALYZE SYSTEMS, DESIGN, ENGINEERING, MECHANICAL, 11:56:13 SOFTWARE, HARDWARE, AND ALL THE ELEMENTS THAT WOULD BE NECESSARY 11:56:16 TO BE ABLE TO COME TO A CONCLUSION AS TO WHAT THE NATURE 11:56:22 OF UNINTENDED ACCELERATION WOULD BE. 11:56:24 >> YES, SIR, WE DO. AND WE TAKE OUR RESPONSIBILITY 11:56:31 SERIOUSLY. WE HAVE 125 ENGINEERS. 11:56:33 WE HAVE ELECTRICAL ENGINEERS. WE'RE GOING TO GET INTO THE 11:56:36 WEEDS IN A VERY THOROUGH COMPREHENSIVE REVIEW ON THE 11:56:42 ELECTRONICS. BECAUSE THAT ISSUE HAS BEEN 11:56:43 RAISED ENOUGH THAT WE NEED TO DO THAT. 11:56:45 BEEN RAISED BY PEOPLE WHO DRIVE TOYOTAS, BEEN RAISED BY MEMBERS 11:56:49 OF CONGRESS AND WE'RE GOING TO DO IT. 11:56:51 >> THE DISTANCE BETWEEN WASHINGTON AND JAPAN IS WELL 11:56:58 ESTABLISHED. BUT THE QUESTION IS WHAT KIND OF 11:57:01 ABILITY DO YOU HAVE TO SEND THOSE WHO HAVE THE TECHNICAL 11:57:06 SKILLS TO ANALYZE DOCUMENTS TO JAPAN TO GET TOYOTA'S 11:57:12 CORPORATION IN BEING ABLE TO REVIEW RECORDS OF RESEARCH FROM 11:57:17 LET'S SAY 2004, 2005, ON THESE MODELS, INTERNAL DOCUMENTS, THAT 11:57:23 WOULD TEND TO SHOW WHETHER OR NOT TOYOTA WAS AWARE OF ANY OF 11:57:27 THESE PROBLEMS. HAVE YOU SENT PEOPLE, 11:57:30 SPECIFICALLY, TO DO THAT AND IF YOU HAVEN'T, DO YOU INTEND TO AS 11:57:35 PART OF YOUR FINDINGS AND YOUR INVESTIGATION? 11:57:37 >> WE HAVE ASKED FOR A VOLUMINOUS AMOUNT OF 11:57:46 INFORMATION. IF WE NEED TO GO JAPAN AND MEET 11:57:48 WITH THEIR ENGINEER AND GET MORE INFORMATION, THAT WILL BE A PART 11:57:50 OF OUR REVIEW. >> AND SO -- BUT YOU NO DOUBT 11:57:56 ARE AWARE THAT AS A ESTABLISHED AND RESPECTED AUTOMOBILE 11:58:03 MANUFACTURER THAT TOYOTA WOULD HAVE RESEARCH DOCUMENTS WITHIN 11:58:07 THEIR CONTROL THAT WOULD SHOW THE FUNCTION OF VARIOUS 11:58:11 COMPONENTS -- >> OF COURSE. 11:58:12 >> -- OF THEIR SYSTEM. >> YES, OF COURSE. 11:58:14 >> I THINK THIS IS IMPORTANT, MR. CHAIRMAN, OR MADAM CHAIR, 11:58:17 THAT WE HEAR FROM THE SECRETARY ON THIS BECAUSE HIS DEPARTMENT 11:58:22 DOES HAVE THE ABILITY TO BE ABLE TO GET INTO THIS. 11:58:26 AND WHILE WE AS MEMBERS GET THESE DOCUMENTS, WE CAN ANALYZE 11:58:28 THEM, WE HAVE HELP IN BEING ABLE TO UNDERSTAND. 11:58:31 ON THE TIME THAT I HAVE REMAINING, FOR THE INSTRUCTION 11:58:35 OF THE MEMBERSHIP AND THE PUBLIC, COULD YOU WALK US 11:58:39 THROUGH HOW COMPLAINTS ARE INVESTIGATED. 11:58:42 YOU KNOW, WHO DOES THE INVESTIGATION? 11:58:46 CAN YOU ENABLE US TO LEARN -- IS THIS ALL IN-HOUSE? 11:58:52 DO YOU OUTSOURCE ANY OF YOUR INVESTIGATIONS? 11:58:55 >> ALMOST ALL OF OUR INVESTIGATIONS ARE DONE IN-HOUSE 11:58:57 BY OUR EXPERTS. PEOPLE FILE COMPLAINTS WITH US. 11:59:01 AND WE TAKE THEM SERIOUSLY. WE LOOK INTO

1130 COHEN HRG WITNESS FS9 82 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the back of Kazakhstan? Mr. Cohen >> It's not a bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's knowledge or direction? Mr. Cohen >> Everything was done with the knowledge and at the direction of Mr. Trump. Mr. Clay >> Tell us why he would do that and what purpose did it serve. Mr. Cohen >> It depends upon the situation. There were times that I was asked, again with Allen Weissleberg, 114501 the CFO, to go back to speak with an individual from Forbes, because Mr. Trump wanted each year to have his net worth rise on the Forbes wealthiest individuals list. And so what you do is you look at the assets and you try to find an asset that has say, for example, 40 Wall Street, which is 114530 >> about 1.2 million square feet. Find an asset that is comparable, find the highest price per square foot that's achieved in the area and apply it to that building. Or if you're going off of your rent roll, go by the gross rent roll times a multiple and you make up the multiple which is something he had talked about. It's based upon what he wanted to value the asset at. Mr. Clay >> You know, you have provided this committee with copies 114601 >> of the president's financial statements or parts of them from 2011, 2012 and 2013. And Mr. Chairman, I would like to submit those for the record. Mr. Chairman, I'd like to submit the statements to the record. Mr. Cummings >> Without objection, so ordered. Mr. Clay >> Thank you. Can you explain why you had these financial statements and what you used them for? Mr. Cohen >> So these financial statements were used by me for two purposes. 114603 >> One was discussing with media whether it was Forbes or other magazines, to demonstrate Mr. Trump's significant net worth.That was one function. Another was when we were dealing later on with insurance companies, we would provide them with these copies so that they would understand that the premium, which is based sometimes upon the individual's 114700 >> capabilities to pay, would be reduced. Mr. Clay >> And all of this was done at the President's direction and with his knowledge? Mr. Cohen >> Yes. Because whatever the numbers would come back to be, we would immediately report it back. Mr. Clay >> And did this information provided to us inflate the president's assets? Mr. Cohen >> I believe these numbers are inflated. Mr. Clay >> And of course, 114731 >> inflating assets to win a newspaper poll to boost your ego is not a crime. But to your knowledge, did the president ever provide inflated assets to a bank in order to help him obtain a loan? Mr. Cummings >> The gentleman's time has expired, but you may answer that question. Mr. Cohen >> These documents and others were provided to Deutsche Bank on one occasion where I was with them in our attempt to obtain 114801 >> money so we can put a bid on the Buffalo bills. Mr. Clay >> Thank you for your answer. Mr. Cummings >> Mr. Hice of Georgia Mr. Hice >> I'd like to yield a second to the gentleman from North Carolina. Mr. Meadows >> I thank the gentleman for yielding. I want to ask unanimous consent to put into the record an article from stat which indicated that Mr. Cohen's promised access, not just Trump, but also the circle around him, it was almost as if we were hiring a lobbyist, close quote. I ask unanimous consent. Mr. Cummings >> Without objection. 114830 Mr. Meadows >> I ask unanimous consent that we put into the record a criminal referral for violating section 22 USC of the statute number 611. I ask unanimous consent that my letter referring Mr. Cohen for violating Fara for illegal lobbying activity be entered into the record. Mr. Cummings >> Without objection, so ordered. Mr. Meadows >> I asked unanimous consent that the first order of business for this committee is for us to look in a bipartisan 114900 way at criminal referrals at the next business meeting. Mr. Cummings >> These are not documents. There are objections. Mr. Meadows >> So we're objecting to a unanimous consent request? Mr. Chairman? Mr. Cummings >> Yes. Mr. Meadows >> I will yield back. Mr. Cummings >> Let me be clear. Mr. Hice, I'm going to give you your whole five minutes, alright? 114930 Mr. Hice >> Thank you, Mr. Chairman. Mr. Cummings >> In fairness to you. Mr. Meadows, the chairman, the ranking member made me aware that I had given a little more time to Ms. Wasserman-schultz. I was going to let you do that anyway, but I just want the committee to know that because there are so many members, I'm going to be strict on this five minutes, all right? Thank you very much. Mr. Hice, you have five minutes. 114959 Mr. Hice >> Thank you, Mr. Chairman. Cohen you said you lied, but you're a liar. If you lied you are a liar by definition. You also said a moment ago that the facts are inaccurate. If they are facts they are accurate and that would make you inaccurate, but I would like to take a moment and I would like to know who you consulted with to prepare for today's hearing? Lanny Davis and who else? Mr. Cohen >> I consulted with my counsel, Lanny Davis as well as Michael Monaco. Mr. Hice >> All right. Did you or Michael 115030 >> or Lanny Davis or anyone else cooperate with the Democratic majority to prepare for this hearing? Mr. Cohen >> I'm sorry, say that again, please? Mr. Hice >> Did you or anyone else on your team cooperate with the Democrat party in preparing for this hearing? Mr. Cohen >> We've spoken to the party. Mr. Hice >> Okay. Did you prepare with chairman Cummings or anyone on your team? Mr. Cohen >> What do you mean by prepare? Mr. Hice >> Prepare for this hearing? Mr. Cohen >> Prepare? I prepared with my counsel. Mr. Hice >> Did you prepare with the 115100 >>Democrat majority or chairman Cummings. Mr. Cohen >> We spoke with chairman Cummings and the party. Mr. Hice >> With chairman Schiff? Mr. Cohen >> I spoke with chairman Schiff and his people, as well. Mr. Hice >> Were there any other individuals acting as a liaise for you and your party. Mr. Cohen >> I'm sorry, sorry, what did you say? Mr. Hice >> Did you have a liaison other than who you mentioned that were working with the majority to prepare for this hearing? 115134 Mr. Cohen >> Liaison. We spoke with various individuals that you just raised, yes. Mr. Hice >> Tom Steyer, him or any of his representatives or anyone associated with him, any of them paying Lanny Davis to represent you? Mr. Cohen >> Not that I'm aware of. Mr. Hice >> Who is paying Lanny Davis? Mr. Cohen >> At the moment no one. Mr. Hice >> He is doing all this work for nothing? Mr. Cohen >> yes, sir. 115200 Mr. Hice >> Okay. Mr. Cohen >> And I hope so. [ Laughter ] Mr. Hice >> I kind of doubt it, but -- how did Lanny Davis come to represent you? Did he approach you or did you approach him? Mr. Cohen >> I reached out to Lanny Davis at the recommendation of my former counsel over at McDermott, Will & Emory who knew Mr. Davis and Mr. -- Mr. Hice >> So you reached out to Mr. Davis? 115230 Mr. Cohen >> I did, yes, initially. Mr. Hice >> Okay. So did you want to testify before Congress or did he urge you to testify here? Mr. Cohen >> I was asked to come here, and I am here, sir, voluntarily because it's my decision -- Mr. Hice >> By who? My question, did he ask you to come here? Mr. Cohen >> No, sir. Mr. Hice >> Okay because he says that he did ask you to come here and that he convinced you and also that he did the same with 115300 >> Chairman Cummings, as well. So your testimony here is that you approached Lanny Davis to represent you and to come here. He did not persuade you to come here? Mr. Cohen >> He did not persuade me. Actually, chairman Cummings, which was part of the conversations that we engaged in with his people as well as chairman Schiff and others, we spoke in order to ask me to come here voluntarily. 115329 Mr. Hice >> I find the connecting of the dots here with -- with Mr. Davis and you and frankly the chairman and perhaps others to be rather stunning that there is an agenda for all this happening here today, and I believe, frankly, that that's to bring the President down, to impugn the President. You made an oath last time you were here and that oath meant nothing to you then. We had an oath here in this very room about a month ago, 115401 >> and it was, quote, be clear that I will seek the truth, nothing but the truth so help me god, end quote. It sounds like an oath to me. The Chairman made that statement in this very room last month and here we are today, our first big hearing, with you as we all know a convicted liar, lying to Congress, a criminal, and I believe this witness is totally incompatible with the stated goal of having to seek the truth in this hearing. 115437 >> This is the first time in the history of Congress we have someone testifying here who has already been convicted of lying to Congress so congratulations for being the first in Congress to do that Mr. Cohen >> thank you Mr. Hice >> and Mr. Cummings as well? I can't believe we have brought this committee to its knees in terms of losing its credibility and it's a shameful mockery of what our purpose is. I yield back. 115502 Mr. Cummings >> The gentleman's time has expired. Mr. Lynch. Mr. Lynch >> Let me just pick up on those last comments. Want to talk about a low point? How about Mr. Papadopoulos pled guilty, Mr. Manafort convicted, pled guilty to two other charges. Mr. Gates pled guilty, Mr. Flint pled guilty, Mr. Vanders pled guilty, Mr. Kilimnik indicted for obstruction of justice and for two years 115530 >> you want to talk about an agenda, my friends on the other side of the aisle refuse to bring any of these people up before the committee. So today for the first day we have one witness who voluntarily is coming forward to testify. Your side ran away and we are trying to bring it to the American people. So, Mr. Cohen - Mr. Cohen >> Sir? Mr. Lynch >> Thank you for voluntarily coming before the committee to testify. 115600 >>I want to ask you about your statements regarding Trump Tower and Moscow, and I want to drill down some of the facts and details. Now you may not be aware of it, but this goes back a ways. Back in 1987, Mr. Trump wrote that he'd had ongoing discussions with Soviet officials back then to build a luxury, a large luxury hotel across from the Kremlin in partnership with the Soviet Union. So at that time it was the Soviet Union. 115632 >> I want to ask you, in your filing with the special counsel, Mueller's office, the prosecutors wrote and I quote, Mr. Cohen discussed the status and progress of the Moscow project with individual 1 on more than the three occasions Mr. Cohen claimed to the committee and he briefed family members of individual 1 with the company about the project. I know this is redundant, but Mr. Cohen, 115700 >>who were you referring to here when we refer to individual 1? Mr. Cohen >> Donald J. Trump. Mr. Lynch >> Okay. And the company? Mr. Cohen >> The Trump organization through a subsidiary. Mr. Lynch >> Okay. And who were the family members that you briefed on the Trump tower Moscow project? Mr. Cohen >> Don Trump Jr. And Ivanka Trump. Mr. Lynch >> Okay. Now were these in the regular course of business or did the president or family request the briefings? Mr. Cohen >> This is in the regular course of business. Mr. Lynch >> Do you recall, there is a question on the number of briefings, 115731 >>do you recall how many there might have been? Mr. Cohen >> I'm sorry, sir? Mr. Lynch >> Do you recall how many of these briefings there might have been? Mr. Cohen >> Approximately ten in total. Mr. Lynch >> All right. In your written remarks you also wrote and I quote, there were at least a half dozen times between the Iowa caucus in January 2016 and the end of June when Mr. Trump would ask me, how is it going in Russia referring to the Russia Moscow tower project. How did the president communicate those questions to you? Was it verbally or over the phone? 115803 Mr. Cohen >> Verbally most of the time. Virtually all of the time. It would -- he said say Michael -- he was reading to say a rally or to a car as I would walk him to the elevator he would ask me questions quickly regarding a series of issues. Mr. Lynch >> Could you tell what he was referring to in terms of the project in Russia? Mr. Cohen >> No, this would be it. Otherwise there would be no reason to ask it of me. Mr. Lynch 115829 >> Right. Right. You also wrote and I quote, to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it, closed quote. How did the president actually direct the negotiations? What details did he direct? Mr. Cohen >> Well, after each communication that I had I would report back to him and our goal was to get this project. We were interested in building what 115900 >> would have been the largest building in all of Europe. Sir, I -- if I can say one last thing. Mr. Lynch >> Please, go ahead. Mr. Cohen >> -- In regard to the gentleman's statements since this is on topic. The lies that I told to Congress in fairness, benefited Mr. Trump. It was in furtherance of my protection of Mr. Trump which I stated in my testimony, and I am not protecting Mr. Trump anymore, and so while I truly 115931 >> appreciate taking some of your time, to attack me every single time about taxes, I have no credibility, it's for exactly that reason that I spent the last week searching boxes in order to find the information that I did. So that you don't have to take my word for it. I don't want you to. I want you to look at the documents. I want you to make your own decision. Mr. Lynch >> I need my last minute. Mr. Cohen >> sorry, sir. Mr. Lynch >> That's okay. Let me just say 120002 >> I don't think my colleagues on the other side of the aisle are afraid that you're going to lie. I think they're afraid you're going to tell the truth. Mr. Cohen >> Thank you, sir. Mr. Lynch >> I yield back the balance of my time. Mr. Cummings >> Thank you very much. The gentleman from Ohio is that recognized? Mr. Jordan >> I appreciate the gentleman for yielding. I want to respond to Mr. Lynch. I want you to think about this. When have you seen a Federal agency where this has happened? James Colmey director, fired. Andy McCabe, deputy director. Fired. Lied three times under oath. Under investigation right now. As we speak 120030 >> Jim baker FBI counsel demoted and currently under investigation by the U.S. Attorney's office in Connecticut. Lisa Page demoted and then left and the counterintelligence, demoted and then fired. That's what happened. That's what we're concerned about and today we actually asked for Rod Rosenstein, oh, by the way, we now know three people have told us rod Rosenstein actually was contemplating using the 25th amendment to remove the guy from Presidency who the American people put there, and we asked for him to be a witness today and the chairman said no 120102 >> and instead we get 30 minutes from a guy who is going to prison -- going to prison in two months for lying to congress. Mr. Cohen, I've got two quick questions before I yield back to my colleague. Mr. Hice asked you who all you talked to. You spoke to Mr. Schiff and obviously you spoke to Mr. Cummings. You're going in front of both committees. And you are here today and you will be in front of Mr. Schiff's committee tomorrow. Have you spoken to chairman Nadler or anyone on his staff or have your attorneys spoken to Chairman. Nadler. Mr. Cohen >> I don't know about my attorneys 120130 >> I have not spoken to congressman Nadler and I am not -- sir, I am not aware if my attorneys. I can ask them. Mr. Jordan >> You can turn around and ask them. Mr. Cohen >> The answer, sir, is no. Mr. Jordan >> Okay. And you said at this present time Mr. Davis is not getting paid. Are you anticipating him receiving some kind of compensation in the future? Mr. Cohen >> When I start to earn a living. Mr. Jordan >> He's going to wait three years? Wow! Mr. Cohen >> The answer is yes. 120200 Mr. Jordan >> Wow! that's a first. I've never known a lawyer to wait three years to get paid. Mr. Cohen >> I guess he thinks it's important. Mr. Jordan >> All right. With that I yield to the gentleman from Arizona. Mr. Gosar >> Well thank you. Mr. Cohen, you know, you are a disgraced lawyer. I mean you've been disbarred. I'm sure you remember, maybe you don't remember, duty of loyalty, duty of confidentiality, attorney-client privilege. I think the gentleman over your right side actually understands that very, very well and wouldn't do what you are doing here today. 120231 >> So let's go back at this credibility. You want us to make sure that we think of you as a real philanthropic icon, that you're about justice that you're the person that someone would call at 3:00 in the morning. No, they wouldn't. Not at all. We saw Mr. Cohen dissect you. Right in front of this committee you conflicted your testimony, sir. You're a pathological liar. You don't know truth from falsehood. 120300 Mr. Cohen >> Sir, I'm sorry. Are you referring to me or the president? Mr. Gospar >> Hey, this is my time. Mr. Cohen >> Are you referring to me, sir or the president? Mr. Gospar >> When I ask a question I'll ask for an answer. Mr. Cohen >> Sure. Mr. Gospar >> Are you familiar with Rule 35 of the federal rules of criminal procedures? Mr. Cohen >> I am now. Mr. Gospar >> Oh! So you understand that you've been in contact with the southern district of New York, is that true? Mr. Cohen >> I am in constant contact with the southern district of New York regarding ongoing investigations. Mr. Gospar >> And part of that application is to reduce sentencing time, is it not? 120333 Mr. Cohen >> There is a possibility -- Mr. Gospar >> Yes. The answer is yes. Mr. Cohen >> No it's not, sir. Mr. Gospar >> Yes it is. So testimony here can actually help you out in getting your sentence lessened, isn't that true? Mr. Cohen >> I'm not really sure how my appearance here today is providing substantial information that the southern district can use for the creation of a case. Now, if there is something that this group can do for me I would gladly welcome it. 120359 Mr. Gospar >> Well, I've got to tell you. America's watching you. I've been getting texts right and left and say how can anyone listen to this pathological person. He's got a problem. He doesn't know fact from fiction and that's what's sad here. You didn't do this for Donald Trump to protect Donald Trump. You did it for you. This is all about you. This is all about this Twitter feed and let me re-run those. Another one. Women who love and support Michael Cohen, strong, 120430 >> pitbull, sex symbol, no nonsense. Business oriented and ready to make a difference. Mr. Cohen >> 1,000 followers? Mr. Gospar >> Ready to make a difference against the law? That's pretty sad. Over and over again, we wanted to have trust. It's built on the premise that we're truthful that we come forward, but there's no truth with you whatsoever and that's why that's important to you to look up here and look at the old adage that our moms taught us, liar, liar, pants on fire. No one shou ld ever listen to you and give you credibility. 120502 >> It's sad. It's sad that we have come. In fact, I want to quote the chairman's very words. This is a real -- hold on. Mr. Cummings The gentleman's time has expired. Mr. Gospar >> A sad day. Mr. Cooper >> Mr. Cohen, several times in your testimony you state the bad things that you did for Mr. Trump 120533 >> and at some point you apparently changed your course of action as a recurring refrain in your testimony that says, and yet I continued to work for him, but at some point you changed. What was the breaking point at which you decided to start telling the truth? Mr. Cohen >> There are several factors. Helsinki, Charlottesville, 120602 >> watching the daily destruction of our civility to one another, putting up silly things like this. >> That's silly. Mr. Cohen >> Really unbecoming of congress. It's that sort of behavior that I'm responsible for. I'm responsible for your silliness because I did the same thing that you're doing now for ten years. I protected Mr. Trump 120631 >> for ten years and the fact that you pull up a news article that has no value to it and you want to use that as the premise for discrediting me, that I'm not the person that people called at 3:00 in the morning would make you inaccurate. In actuality, it would make you a liar which puts you into the same position that I am in, and I can only warn people the more people that follow Mr. Trump as I did blindly are going to suffer the same consequences that I'm suffering. 120704 Mr. Cooper >> What warning would you give young people who are tempted as you were, would you encourage them not to wait ten years to see the light? What advice would you give young people, in particular young lawyers, so they do not abuse their bar license as you did. Mr. Cohen >> Look at what's happened to me? I had a wonderful life. I have a beautiful wife. I have two amazing children. I -- I achieved financial success 120732 >> by the age of 39. I didn't go to work for Mr. Trump because I had to. I went to work for him because I wanted to, and I've lost it all. So if I'm not a picture-perfect -- that's the picture that should be up there. If I'm not a picture-perfect example of what not to do that's the example that I'm trying to set for my children. You make mistakes in life and I've owned them and I've taken responsibility for them, and I'm 120800 >> paying a huge price as is my family. So if that in and of itself isn't enough to dissuade somebody from acting in the callous manner that I did I'm not sure that person has any chance very much like I'm in right now. Mr. Cooper >> A recurring theme in your testimony is concern for your family's safety. What, specifically, are you most concerned about? Mr. Cohen >> Well, the president, unlike my Cohen for Trump that has 1,000 followers, 120830 >> he's got over 60 million people and when Mr. Trump turned around early in the campaign and said I can shoot somebody on fifth avenue and get away with it, I want to be very clear. He's not joking. He's telling you the truth. You don't know him. I do. I've sat next to this man for ten years, and I watched his back. I'm the one who started the campaign, and I'm the one who continued in 2015 to promote him. 120900 >> There were so many things I thought that he can do that are great and he can and is doing things that are great, but this destruction of our civility to one another is out of control and when he goes on Twitter and he starts bringing in my in-laws, my parents, my wife, what does he think is going to happen? He's causing -- he's sending out the same message that he can do whatever he wants. This is his country. He's becoming an autocrat and hopefully something bad will happen to me or my children or my wife 120932 >> so that I will not be here and testify. That's what his hope was, was to intimidate me, and again, I thanked everybody who joined and said that this is just not right. Mr. Cooper >> Have you ever seen Mr. Trump personally threaten people with physical harm? Mr. Cohen >> No. He would use others. Mr. Cooper >> He would hire other people to do that? Mr. Cohen >> I'm not so that he had to hire them. They were already working there. Everybody's job at the Trump organization is to protect Mr. Trump. 121007 >> Every day most of us knew we were coming in and we were going to lie for him on something, and that became the norm and that's exactly what's happening right now in this country and it's exactly what's happening here in government, sir. Mr. Cooper >> Thank you, Mr. Chairman. My time has expired. Mr. Cummings >> Mr. Armstrong? Mr. Armstrong >> Thank you. 121030 Mr. Cohen >> Mr. Chairman, can we take a break? Mr. Cummings >> Not right now. Mr. Cohen >> Okay. >> All right. [ Inaudible ] Mr. Cohen >> I did, sir. Mr. Cohen >> That's okay. Thank you, sir. [ Inaudible ] Thank you. RECESS 121101

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HENRY FORD'S MIRROR OF AMERICA, 1914-1945

1130 COHEN HRG GOP ISO FS8 79 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the back of Kazakhstan? Mr. Cohen >> It's not a bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's knowledge or direction? Mr. Cohen >> Everything was done with the knowledge and at the direction of Mr. Trump. Mr. Clay >> Tell us why he would do that and what purpose did it serve. Mr. Cohen >> It depends upon the situation. There were times that I was asked, again with Allen Weissleberg, 114501 the CFO, to go back to speak with an individual from Forbes, because Mr. Trump wanted each year to have his net worth rise on the Forbes wealthiest individuals list. And so what you do is you look at the assets and you try to find an asset that has say, for example, 40 Wall Street, which is 114530 >> about 1.2 million square feet. Find an asset that is comparable, find the highest price per square foot that's achieved in the area and apply it to that building. Or if you're going off of your rent roll, go by the gross rent roll times a multiple and you make up the multiple which is something he had talked about. It's based upon what he wanted to value the asset at. Mr. Clay >> You know, you have provided this committee with copies 114601 >> of the president's financial statements or parts of them from 2011, 2012 and 2013. And Mr. Chairman, I would like to submit those for the record. Mr. Chairman, I'd like to submit the statements to the record. Mr. Cummings >> Without objection, so ordered. Mr. Clay >> Thank you. Can you explain why you had these financial statements and what you used them for? Mr. Cohen >> So these financial statements were used by me for two purposes. 114603 >> One was discussing with media whether it was Forbes or other magazines, to demonstrate Mr. Trump's significant net worth.That was one function. Another was when we were dealing later on with insurance companies, we would provide them with these copies so that they would understand that the premium, which is based sometimes upon the individual's 114700 >> capabilities to pay, would be reduced. Mr. Clay >> And all of this was done at the President's direction and with his knowledge? Mr. Cohen >> Yes. Because whatever the numbers would come back to be, we would immediately report it back. Mr. Clay >> And did this information provided to us inflate the president's assets? Mr. Cohen >> I believe these numbers are inflated. Mr. Clay >> And of course, 114731 >> inflating assets to win a newspaper poll to boost your ego is not a crime. But to your knowledge, did the president ever provide inflated assets to a bank in order to help him obtain a loan? Mr. Cummings >> The gentleman's time has expired, but you may answer that question. Mr. Cohen >> These documents and others were provided to Deutsche Bank on one occasion where I was with them in our attempt to obtain 114801 >> money so we can put a bid on the Buffalo bills. Mr. Clay >> Thank you for your answer. Mr. Cummings >> Mr. Hice of Georgia Mr. Hice >> I'd like to yield a second to the gentleman from North Carolina. Mr. Meadows >> I thank the gentleman for yielding. I want to ask unanimous consent to put into the record an article from stat which indicated that Mr. Cohen's promised access, not just Trump, but also the circle around him, it was almost as if we were hiring a lobbyist, close quote. I ask unanimous consent. Mr. Cummings >> Without objection. 114830 Mr. Meadows >> I ask unanimous consent that we put into the record a criminal referral for violating section 22 USC of the statute number 611. I ask unanimous consent that my letter referring Mr. Cohen for violating Fara for illegal lobbying activity be entered into the record. Mr. Cummings >> Without objection, so ordered. Mr. Meadows >> I asked unanimous consent that the first order of business for this committee is for us to look in a bipartisan 114900 way at criminal referrals at the next business meeting. Mr. Cummings >> These are not documents. There are objections. Mr. Meadows >> So we're objecting to a unanimous consent request? Mr. Chairman? Mr. Cummings >> Yes. Mr. Meadows >> I will yield back. Mr. Cummings >> Let me be clear. Mr. Hice, I'm going to give you your whole five minutes, alright? 114930 Mr. Hice >> Thank you, Mr. Chairman. Mr. Cummings >> In fairness to you. Mr. Meadows, the chairman, the ranking member made me aware that I had given a little more time to Ms. Wasserman-schultz. I was going to let you do that anyway, but I just want the committee to know that because there are so many members, I'm going to be strict on this five minutes, all right? Thank you very much. Mr. Hice, you have five minutes. 114959 Mr. Hice >> Thank you, Mr. Chairman. Cohen you said you lied, but you're a liar. If you lied you are a liar by definition. You also said a moment ago that the facts are inaccurate. If they are facts they are accurate and that would make you inaccurate, but I would like to take a moment and I would like to know who you consulted with to prepare for today's hearing? Lanny Davis and who else? Mr. Cohen >> I consulted with my counsel, Lanny Davis as well as Michael Monaco. Mr. Hice >> All right. Did you or Michael 115030 >> or Lanny Davis or anyone else cooperate with the Democratic majority to prepare for this hearing? Mr. Cohen >> I'm sorry, say that again, please? Mr. Hice >> Did you or anyone else on your team cooperate with the Democrat party in preparing for this hearing? Mr. Cohen >> We've spoken to the party. Mr. Hice >> Okay. Did you prepare with chairman Cummings or anyone on your team? Mr. Cohen >> What do you mean by prepare? Mr. Hice >> Prepare for this hearing? Mr. Cohen >> Prepare? I prepared with my counsel. Mr. Hice >> Did you prepare with the 115100 >>Democrat majority or chairman Cummings. Mr. Cohen >> We spoke with chairman Cummings and the party. Mr. Hice >> With chairman Schiff? Mr. Cohen >> I spoke with chairman Schiff and his people, as well. Mr. Hice >> Were there any other individuals acting as a liaise for you and your party. Mr. Cohen >> I'm sorry, sorry, what did you say? Mr. Hice >> Did you have a liaison other than who you mentioned that were working with the majority to prepare for this hearing? 115134 Mr. Cohen >> Liaison. We spoke with various individuals that you just raised, yes. Mr. Hice >> Tom Steyer, him or any of his representatives or anyone associated with him, any of them paying Lanny Davis to represent you? Mr. Cohen >> Not that I'm aware of. Mr. Hice >> Who is paying Lanny Davis? Mr. Cohen >> At the moment no one. Mr. Hice >> He is doing all this work for nothing? Mr. Cohen >> yes, sir. 115200 Mr. Hice >> Okay. Mr. Cohen >> And I hope so. [ Laughter ] Mr. Hice >> I kind of doubt it, but -- how did Lanny Davis come to represent you? Did he approach you or did you approach him? Mr. Cohen >> I reached out to Lanny Davis at the recommendation of my former counsel over at McDermott, Will & Emory who knew Mr. Davis and Mr. -- Mr. Hice >> So you reached out to Mr. Davis? 115230 Mr. Cohen >> I did, yes, initially. Mr. Hice >> Okay. So did you want to testify before Congress or did he urge you to testify here? Mr. Cohen >> I was asked to come here, and I am here, sir, voluntarily because it's my decision -- Mr. Hice >> By who? My question, did he ask you to come here? Mr. Cohen >> No, sir. Mr. Hice >> Okay because he says that he did ask you to come here and that he convinced you and also that he did the same with 115300 >> Chairman Cummings, as well. So your testimony here is that you approached Lanny Davis to represent you and to come here. He did not persuade you to come here? Mr. Cohen >> He did not persuade me. Actually, chairman Cummings, which was part of the conversations that we engaged in with his people as well as chairman Schiff and others, we spoke in order to ask me to come here voluntarily. 115329 Mr. Hice >> I find the connecting of the dots here with -- with Mr. Davis and you and frankly the chairman and perhaps others to be rather stunning that there is an agenda for all this happening here today, and I believe, frankly, that that's to bring the President down, to impugn the President. You made an oath last time you were here and that oath meant nothing to you then. We had an oath here in this very room about a month ago, 115401 >> and it was, quote, be clear that I will seek the truth, nothing but the truth so help me god, end quote. It sounds like an oath to me. The Chairman made that statement in this very room last month and here we are today, our first big hearing, with you as we all know a convicted liar, lying to Congress, a criminal, and I believe this witness is totally incompatible with the stated goal of having to seek the truth in this hearing. 115437 >> This is the first time in the history of Congress we have someone testifying here who has already been convicted of lying to Congress so congratulations for being the first in Congress to do that Mr. Cohen >> thank you Mr. Hice >> and Mr. Cummings as well? I can't believe we have brought this committee to its knees in terms of losing its credibility and it's a shameful mockery of what our purpose is. I yield back. 115502 Mr. Cummings >> The gentleman's time has expired. Mr. Lynch. Mr. Lynch >> Let me just pick up on those last comments. Want to talk about a low point? How about Mr. Papadopoulos pled guilty, Mr. Manafort convicted, pled guilty to two other charges. Mr. Gates pled guilty, Mr. Flint pled guilty, Mr. Vanders pled guilty, Mr. Kilimnik indicted for obstruction of justice and for two years 115530 >> you want to talk about an agenda, my friends on the other side of the aisle refuse to bring any of these people up before the committee. So today for the first day we have one witness who voluntarily is coming forward to testify. Your side ran away and we are trying to bring it to the American people. So, Mr. Cohen - Mr. Cohen >> Sir? Mr. Lynch >> Thank you for voluntarily coming before the committee to testify. 115600 >>I want to ask you about your statements regarding Trump Tower and Moscow, and I want to drill down some of the facts and details. Now you may not be aware of it, but this goes back a ways. Back in 1987, Mr. Trump wrote that he'd had ongoing discussions with Soviet officials back then to build a luxury, a large luxury hotel across from the Kremlin in partnership with the Soviet Union. So at that time it was the Soviet Union. 115632 >> I want to ask you, in your filing with the special counsel, Mueller's office, the prosecutors wrote and I quote, Mr. Cohen discussed the status and progress of the Moscow project with individual 1 on more than the three occasions Mr. Cohen claimed to the committee and he briefed family members of individual 1 with the company about the project. I know this is redundant, but Mr. Cohen, 115700 >>who were you referring to here when we refer to individual 1? Mr. Cohen >> Donald J. Trump. Mr. Lynch >> Okay. And the company? Mr. Cohen >> The Trump organization through a subsidiary. Mr. Lynch >> Okay. And who were the family members that you briefed on the Trump tower Moscow project? Mr. Cohen >> Don Trump Jr. And Ivanka Trump. Mr. Lynch >> Okay. Now were these in the regular course of business or did the president or family request the briefings? Mr. Cohen >> This is in the regular course of business. Mr. Lynch >> Do you recall, there is a question on the number of briefings, 115731 >>do you recall how many there might have been? Mr. Cohen >> I'm sorry, sir? Mr. Lynch >> Do you recall how many of these briefings there might have been? Mr. Cohen >> Approximately ten in total. Mr. Lynch >> All right. In your written remarks you also wrote and I quote, there were at least a half dozen times between the Iowa caucus in January 2016 and the end of June when Mr. Trump would ask me, how is it going in Russia referring to the Russia Moscow tower project. How did the president communicate those questions to you? Was it verbally or over the phone? 115803 Mr. Cohen >> Verbally most of the time. Virtually all of the time. It would -- he said say Michael -- he was reading to say a rally or to a car as I would walk him to the elevator he would ask me questions quickly regarding a series of issues. Mr. Lynch >> Could you tell what he was referring to in terms of the project in Russia? Mr. Cohen >> No, this would be it. Otherwise there would be no reason to ask it of me. Mr. Lynch 115829 >> Right. Right. You also wrote and I quote, to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it, closed quote. How did the president actually direct the negotiations? What details did he direct? Mr. Cohen >> Well, after each communication that I had I would report back to him and our goal was to get this project. We were interested in building what 115900 >> would have been the largest building in all of Europe. Sir, I -- if I can say one last thing. Mr. Lynch >> Please, go ahead. Mr. Cohen >> -- In regard to the gentleman's statements since this is on topic. The lies that I told to Congress in fairness, benefited Mr. Trump. It was in furtherance of my protection of Mr. Trump which I stated in my testimony, and I am not protecting Mr. Trump anymore, and so while I truly 115931 >> appreciate taking some of your time, to attack me every single time about taxes, I have no credibility, it's for exactly that reason that I spent the last week searching boxes in order to find the information that I did. So that you don't have to take my word for it. I don't want you to. I want you to look at the documents. I want you to make your own decision. Mr. Lynch >> I need my last minute. Mr. Cohen >> sorry, sir. Mr. Lynch >> That's okay. Let me just say 120002 >> I don't think my colleagues on the other side of the aisle are afraid that you're going to lie. I think they're afraid you're going to tell the truth. Mr. Cohen >> Thank you, sir. Mr. Lynch >> I yield back the balance of my time. Mr. Cummings >> Thank you very much. The gentleman from Ohio is that recognized? Mr. Jordan >> I appreciate the gentleman for yielding. I want to respond to Mr. Lynch. I want you to think about this. When have you seen a Federal agency where this has happened? James Colmey director, fired. Andy McCabe, deputy director. Fired. Lied three times under oath. Under investigation right now. As we speak 120030 >> Jim baker FBI counsel demoted and currently under investigation by the U.S. Attorney's office in Connecticut. Lisa Page demoted and then left and the counterintelligence, demoted and then fired. That's what happened. That's what we're concerned about and today we actually asked for Rod Rosenstein, oh, by the way, we now know three people have told us rod Rosenstein actually was contemplating using the 25th amendment to remove the guy from Presidency who the American people put there, and we asked for him to be a witness today and the chairman said no 120102 >> and instead we get 30 minutes from a guy who is going to prison -- going to prison in two months for lying to congress. Mr. Cohen, I've got two quick questions before I yield back to my colleague. Mr. Hice asked you who all you talked to. You spoke to Mr. Schiff and obviously you spoke to Mr. Cummings. You're going in front of both committees. And you are here today and you will be in front of Mr. Schiff's committee tomorrow. Have you spoken to chairman Nadler or anyone on his staff or have your attorneys spoken to Chairman. Nadler. Mr. Cohen >> I don't know about my attorneys 120130 >> I have not spoken to congressman Nadler and I am not -- sir, I am not aware if my attorneys. I can ask them. Mr. Jordan >> You can turn around and ask them. Mr. Cohen >> The answer, sir, is no. Mr. Jordan >> Okay. And you said at this present time Mr. Davis is not getting paid. Are you anticipating him receiving some kind of compensation in the future? Mr. Cohen >> When I start to earn a living. Mr. Jordan >> He's going to wait three years? Wow! Mr. Cohen >> The answer is yes. 120200 Mr. Jordan >> Wow! that's a first. I've never known a lawyer to wait three years to get paid. Mr. Cohen >> I guess he thinks it's important. Mr. Jordan >> All right. With that I yield to the gentleman from Arizona. Mr. Gosar >> Well thank you. Mr. Cohen, you know, you are a disgraced lawyer. I mean you've been disbarred. I'm sure you remember, maybe you don't remember, duty of loyalty, duty of confidentiality, attorney-client privilege. I think the gentleman over your right side actually understands that very, very well and wouldn't do what you are doing here today. 120231 >> So let's go back at this credibility. You want us to make sure that we think of you as a real philanthropic icon, that you're about justice that you're the person that someone would call at 3:00 in the morning. No, they wouldn't. Not at all. We saw Mr. Cohen dissect you. Right in front of this committee you conflicted your testimony, sir. You're a pathological liar. You don't know truth from falsehood. 120300 Mr. Cohen >> Sir, I'm sorry. Are you referring to me or the president? Mr. Gospar >> Hey, this is my time. Mr. Cohen >> Are you referring to me, sir or the president? Mr. Gospar >> When I ask a question I'll ask for an answer. Mr. Cohen >> Sure. Mr. Gospar >> Are you familiar with Rule 35 of the federal rules of criminal procedures? Mr. Cohen >> I am now. Mr. Gospar >> Oh! So you understand that you've been in contact with the southern district of New York, is that true? Mr. Cohen >> I am in constant contact with the southern district of New York regarding ongoing investigations. Mr. Gospar >> And part of that application is to reduce sentencing time, is it not? 120333 Mr. Cohen >> There is a possibility -- Mr. Gospar >> Yes. The answer is yes. Mr. Cohen >> No it's not, sir. Mr. Gospar >> Yes it is. So testimony here can actually help you out in getting your sentence lessened, isn't that true? Mr. Cohen >> I'm not really sure how my appearance here today is providing substantial information that the southern district can use for the creation of a case. Now, if there is something that this group can do for me I would gladly welcome it. 120359 Mr. Gospar >> Well, I've got to tell you. America's watching you. I've been getting texts right and left and say how can anyone listen to this pathological person. He's got a problem. He doesn't know fact from fiction and that's what's sad here. You didn't do this for Donald Trump to protect Donald Trump. You did it for you. This is all about you. This is all about this Twitter feed and let me re-run those. Another one. Women who love and support Michael Cohen, strong, 120430 >> pitbull, sex symbol, no nonsense. Business oriented and ready to make a difference. Mr. Cohen >> 1,000 followers? Mr. Gospar >> Ready to make a difference against the law? That's pretty sad. Over and over again, we wanted to have trust. It's built on the premise that we're truthful that we come forward, but there's no truth with you whatsoever and that's why that's important to you to look up here and look at the old adage that our moms taught us, liar, liar, pants on fire. No one shou ld ever listen to you and give you credibility. 120502 >> It's sad. It's sad that we have come. In fact, I want to quote the chairman's very words. This is a real -- hold on. Mr. Cummings The gentleman's time has expired. Mr. Gospar >> A sad day. Mr. Cooper >> Mr. Cohen, several times in your testimony you state the bad things that you did for Mr. Trump 120533 >> and at some point you apparently changed your course of action as a recurring refrain in your testimony that says, and yet I continued to work for him, but at some point you changed. What was the breaking point at which you decided to start telling the truth? Mr. Cohen >> There are several factors. Helsinki, Charlottesville, 120602 >> watching the daily destruction of our civility to one another, putting up silly things like this. >> That's silly. Mr. Cohen >> Really unbecoming of congress. It's that sort of behavior that I'm responsible for. I'm responsible for your silliness because I did the same thing that you're doing now for ten years. I protected Mr. Trump 120631 >> for ten years and the fact that you pull up a news article that has no value to it and you want to use that as the premise for discrediting me, that I'm not the person that people called at 3:00 in the morning would make you inaccurate. In actuality, it would make you a liar which puts you into the same position that I am in, and I can only warn people the more people that follow Mr. Trump as I did blindly are going to suffer the same consequences that I'm suffering. 120704 Mr. Cooper >> What warning would you give young people who are tempted as you were, would you encourage them not to wait ten years to see the light? What advice would you give young people, in particular young lawyers, so they do not abuse their bar license as you did. Mr. Cohen >> Look at what's happened to me? I had a wonderful life. I have a beautiful wife. I have two amazing children. I -- I achieved financial success 120732 >> by the age of 39. I didn't go to work for Mr. Trump because I had to. I went to work for him because I wanted to, and I've lost it all. So if I'm not a picture-perfect -- that's the picture that should be up there. If I'm not a picture-perfect example of what not to do that's the example that I'm trying to set for my children. You make mistakes in life and I've owned them and I've taken responsibility for them, and I'm 120800 >> paying a huge price as is my family. So if that in and of itself isn't enough to dissuade somebody from acting in the callous manner that I did I'm not sure that person has any chance very much like I'm in right now. Mr. Cooper >> A recurring theme in your testimony is concern for your family's safety. What, specifically, are you most concerned about? Mr. Cohen >> Well, the president, unlike my Cohen for Trump that has 1,000 followers, 120830 >> he's got over 60 million people and when Mr. Trump turned around early in the campaign and said I can shoot somebody on fifth avenue and get away with it, I want to be very clear. He's not joking. He's telling you the truth. You don't know him. I do. I've sat next to this man for ten years, and I watched his back. I'm the one who started the campaign, and I'm the one who continued in 2015 to promote him. 120900 >> There were so many things I thought that he can do that are great and he can and is doing things that are great, but this destruction of our civility to one another is out of control and when he goes on Twitter and he starts bringing in my in-laws, my parents, my wife, what does he think is going to happen? He's causing -- he's sending out the same message that he can do whatever he wants. This is his country. He's becoming an autocrat and hopefully something bad will happen to me or my children or my wife 120932 >> so that I will not be here and testify. That's what his hope was, was to intimidate me, and again, I thanked everybody who joined and said that this is just not right. Mr. Cooper >> Have you ever seen Mr. Trump personally threaten people with physical harm? Mr. Cohen >> No. He would use others. Mr. Cooper >> He would hire other people to do that? Mr. Cohen >> I'm not so that he had to hire them. They were already working there. Everybody's job at the Trump organization is to protect Mr. Trump. 121007 >> Every day most of us knew we were coming in and we were going to lie for him on something, and that became the norm and that's exactly what's happening right now in this country and it's exactly what's happening here in government, sir. Mr. Cooper >> Thank you, Mr. Chairman. My time has expired. Mr. Cummings >> Mr. Armstrong? Mr. Armstrong >> Thank you. 121030 Mr. Cohen >> Mr. Chairman, can we take a break? Mr. Cummings >> Not right now. Mr. Cohen >> Okay. >> All right. [ Inaudible ] Mr. Cohen >> I did, sir. Mr. Cohen >> That's okay. Thank you, sir. [ Inaudible ] Thank you. RECESS 121101

1130 COHEN HRG DEM ISO FS7 80 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the back of Kazakhstan? Mr. Cohen >> It's not a bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's knowledge or direction? Mr. Cohen >> Everything was done with the knowledge and at the direction of Mr. Trump. Mr. Clay >> Tell us why he would do that and what purpose did it serve. Mr. Cohen >> It depends upon the situation. There were times that I was asked, again with Allen Weissleberg, 114501 the CFO, to go back to speak with an individual from Forbes, because Mr. Trump wanted each year to have his net worth rise on the Forbes wealthiest individuals list. And so what you do is you look at the assets and you try to find an asset that has say, for example, 40 Wall Street, which is 114530 >> about 1.2 million square feet. Find an asset that is comparable, find the highest price per square foot that's achieved in the area and apply it to that building. Or if you're going off of your rent roll, go by the gross rent roll times a multiple and you make up the multiple which is something he had talked about. It's based upon what he wanted to value the asset at. Mr. Clay >> You know, you have provided this committee with copies 114601 >> of the president's financial statements or parts of them from 2011, 2012 and 2013. And Mr. Chairman, I would like to submit those for the record. Mr. Chairman, I'd like to submit the statements to the record. Mr. Cummings >> Without objection, so ordered. Mr. Clay >> Thank you. Can you explain why you had these financial statements and what you used them for? Mr. Cohen >> So these financial statements were used by me for two purposes. 114603 >> One was discussing with media whether it was Forbes or other magazines, to demonstrate Mr. Trump's significant net worth.That was one function. Another was when we were dealing later on with insurance companies, we would provide them with these copies so that they would understand that the premium, which is based sometimes upon the individual's 114700 >> capabilities to pay, would be reduced. Mr. Clay >> And all of this was done at the President's direction and with his knowledge? Mr. Cohen >> Yes. Because whatever the numbers would come back to be, we would immediately report it back. Mr. Clay >> And did this information provided to us inflate the president's assets? Mr. Cohen >> I believe these numbers are inflated. Mr. Clay >> And of course, 114731 >> inflating assets to win a newspaper poll to boost your ego is not a crime. But to your knowledge, did the president ever provide inflated assets to a bank in order to help him obtain a loan? Mr. Cummings >> The gentleman's time has expired, but you may answer that question. Mr. Cohen >> These documents and others were provided to Deutsche Bank on one occasion where I was with them in our attempt to obtain 114801 >> money so we can put a bid on the Buffalo bills. Mr. Clay >> Thank you for your answer. Mr. Cummings >> Mr. Hice of Georgia Mr. Hice >> I'd like to yield a second to the gentleman from North Carolina. Mr. Meadows >> I thank the gentleman for yielding. I want to ask unanimous consent to put into the record an article from stat which indicated that Mr. Cohen's promised access, not just Trump, but also the circle around him, it was almost as if we were hiring a lobbyist, close quote. I ask unanimous consent. Mr. Cummings >> Without objection. 114830 Mr. Meadows >> I ask unanimous consent that we put into the record a criminal referral for violating section 22 USC of the statute number 611. I ask unanimous consent that my letter referring Mr. Cohen for violating Fara for illegal lobbying activity be entered into the record. Mr. Cummings >> Without objection, so ordered. Mr. Meadows >> I asked unanimous consent that the first order of business for this committee is for us to look in a bipartisan 114900 way at criminal referrals at the next business meeting. Mr. Cummings >> These are not documents. There are objections. Mr. Meadows >> So we're objecting to a unanimous consent request? Mr. Chairman? Mr. Cummings >> Yes. Mr. Meadows >> I will yield back. Mr. Cummings >> Let me be clear. Mr. Hice, I'm going to give you your whole five minutes, alright? 114930 Mr. Hice >> Thank you, Mr. Chairman. Mr. Cummings >> In fairness to you. Mr. Meadows, the chairman, the ranking member made me aware that I had given a little more time to Ms. Wasserman-schultz. I was going to let you do that anyway, but I just want the committee to know that because there are so many members, I'm going to be strict on this five minutes, all right? Thank you very much. Mr. Hice, you have five minutes. 114959 Mr. Hice >> Thank you, Mr. Chairman. Cohen you said you lied, but you're a liar. If you lied you are a liar by definition. You also said a moment ago that the facts are inaccurate. If they are facts they are accurate and that would make you inaccurate, but I would like to take a moment and I would like to know who you consulted with to prepare for today's hearing? Lanny Davis and who else? Mr. Cohen >> I consulted with my counsel, Lanny Davis as well as Michael Monaco. Mr. Hice >> All right. Did you or Michael 115030 >> or Lanny Davis or anyone else cooperate with the Democratic majority to prepare for this hearing? Mr. Cohen >> I'm sorry, say that again, please? Mr. Hice >> Did you or anyone else on your team cooperate with the Democrat party in preparing for this hearing? Mr. Cohen >> We've spoken to the party. Mr. Hice >> Okay. Did you prepare with chairman Cummings or anyone on your team? Mr. Cohen >> What do you mean by prepare? Mr. Hice >> Prepare for this hearing? Mr. Cohen >> Prepare? I prepared with my counsel. Mr. Hice >> Did you prepare with the 115100 >>Democrat majority or chairman Cummings. Mr. Cohen >> We spoke with chairman Cummings and the party. Mr. Hice >> With chairman Schiff? Mr. Cohen >> I spoke with chairman Schiff and his people, as well. Mr. Hice >> Were there any other individuals acting as a liaise for you and your party. Mr. Cohen >> I'm sorry, sorry, what did you say? Mr. Hice >> Did you have a liaison other than who you mentioned that were working with the majority to prepare for this hearing? 115134 Mr. Cohen >> Liaison. We spoke with various individuals that you just raised, yes. Mr. Hice >> Tom Steyer, him or any of his representatives or anyone associated with him, any of them paying Lanny Davis to represent you? Mr. Cohen >> Not that I'm aware of. Mr. Hice >> Who is paying Lanny Davis? Mr. Cohen >> At the moment no one. Mr. Hice >> He is doing all this work for nothing? Mr. Cohen >> yes, sir. 115200 Mr. Hice >> Okay. Mr. Cohen >> And I hope so. [ Laughter ] Mr. Hice >> I kind of doubt it, but -- how did Lanny Davis come to represent you? Did he approach you or did you approach him? Mr. Cohen >> I reached out to Lanny Davis at the recommendation of my former counsel over at McDermott, Will & Emory who knew Mr. Davis and Mr. -- Mr. Hice >> So you reached out to Mr. Davis? 115230 Mr. Cohen >> I did, yes, initially. Mr. Hice >> Okay. So did you want to testify before Congress or did he urge you to testify here? Mr. Cohen >> I was asked to come here, and I am here, sir, voluntarily because it's my decision -- Mr. Hice >> By who? My question, did he ask you to come here? Mr. Cohen >> No, sir. Mr. Hice >> Okay because he says that he did ask you to come here and that he convinced you and also that he did the same with 115300 >> Chairman Cummings, as well. So your testimony here is that you approached Lanny Davis to represent you and to come here. He did not persuade you to come here? Mr. Cohen >> He did not persuade me. Actually, chairman Cummings, which was part of the conversations that we engaged in with his people as well as chairman Schiff and others, we spoke in order to ask me to come here voluntarily. 115329 Mr. Hice >> I find the connecting of the dots here with -- with Mr. Davis and you and frankly the chairman and perhaps others to be rather stunning that there is an agenda for all this happening here today, and I believe, frankly, that that's to bring the President down, to impugn the President. You made an oath last time you were here and that oath meant nothing to you then. We had an oath here in this very room about a month ago, 115401 >> and it was, quote, be clear that I will seek the truth, nothing but the truth so help me god, end quote. It sounds like an oath to me. The Chairman made that statement in this very room last month and here we are today, our first big hearing, with you as we all know a convicted liar, lying to Congress, a criminal, and I believe this witness is totally incompatible with the stated goal of having to seek the truth in this hearing. 115437 >> This is the first time in the history of Congress we have someone testifying here who has already been convicted of lying to Congress so congratulations for being the first in Congress to do that Mr. Cohen >> thank you Mr. Hice >> and Mr. Cummings as well? I can't believe we have brought this committee to its knees in terms of losing its credibility and it's a shameful mockery of what our purpose is. I yield back. 115502 Mr. Cummings >> The gentleman's time has expired. Mr. Lynch. Mr. Lynch >> Let me just pick up on those last comments. Want to talk about a low point? How about Mr. Papadopoulos pled guilty, Mr. Manafort convicted, pled guilty to two other charges. Mr. Gates pled guilty, Mr. Flint pled guilty, Mr. Vanders pled guilty, Mr. Kilimnik indicted for obstruction of justice and for two years 115530 >> you want to talk about an agenda, my friends on the other side of the aisle refuse to bring any of these people up before the committee. So today for the first day we have one witness who voluntarily is coming forward to testify. Your side ran away and we are trying to bring it to the American people. So, Mr. Cohen - Mr. Cohen >> Sir? Mr. Lynch >> Thank you for voluntarily coming before the committee to testify. 115600 >>I want to ask you about your statements regarding Trump Tower and Moscow, and I want to drill down some of the facts and details. Now you may not be aware of it, but this goes back a ways. Back in 1987, Mr. Trump wrote that he'd had ongoing discussions with Soviet officials back then to build a luxury, a large luxury hotel across from the Kremlin in partnership with the Soviet Union. So at that time it was the Soviet Union. 115632 >> I want to ask you, in your filing with the special counsel, Mueller's office, the prosecutors wrote and I quote, Mr. Cohen discussed the status and progress of the Moscow project with individual 1 on more than the three occasions Mr. Cohen claimed to the committee and he briefed family members of individual 1 with the company about the project. I know this is redundant, but Mr. Cohen, 115700 >>who were you referring to here when we refer to individual 1? Mr. Cohen >> Donald J. Trump. Mr. Lynch >> Okay. And the company? Mr. Cohen >> The Trump organization through a subsidiary. Mr. Lynch >> Okay. And who were the family members that you briefed on the Trump tower Moscow project? Mr. Cohen >> Don Trump Jr. And Ivanka Trump. Mr. Lynch >> Okay. Now were these in the regular course of business or did the president or family request the briefings? Mr. Cohen >> This is in the regular course of business. Mr. Lynch >> Do you recall, there is a question on the number of briefings, 115731 >>do you recall how many there might have been? Mr. Cohen >> I'm sorry, sir? Mr. Lynch >> Do you recall how many of these briefings there might have been? Mr. Cohen >> Approximately ten in total. Mr. Lynch >> All right. In your written remarks you also wrote and I quote, there were at least a half dozen times between the Iowa caucus in January 2016 and the end of June when Mr. Trump would ask me, how is it going in Russia referring to the Russia Moscow tower project. How did the president communicate those questions to you? Was it verbally or over the phone? 115803 Mr. Cohen >> Verbally most of the time. Virtually all of the time. It would -- he said say Michael -- he was reading to say a rally or to a car as I would walk him to the elevator he would ask me questions quickly regarding a series of issues. Mr. Lynch >> Could you tell what he was referring to in terms of the project in Russia? Mr. Cohen >> No, this would be it. Otherwise there would be no reason to ask it of me. Mr. Lynch 115829 >> Right. Right. You also wrote and I quote, to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it, closed quote. How did the president actually direct the negotiations? What details did he direct? Mr. Cohen >> Well, after each communication that I had I would report back to him and our goal was to get this project. We were interested in building what 115900 >> would have been the largest building in all of Europe. Sir, I -- if I can say one last thing. Mr. Lynch >> Please, go ahead. Mr. Cohen >> -- In regard to the gentleman's statements since this is on topic. The lies that I told to Congress in fairness, benefited Mr. Trump. It was in furtherance of my protection of Mr. Trump which I stated in my testimony, and I am not protecting Mr. Trump anymore, and so while I truly 115931 >> appreciate taking some of your time, to attack me every single time about taxes, I have no credibility, it's for exactly that reason that I spent the last week searching boxes in order to find the information that I did. So that you don't have to take my word for it. I don't want you to. I want you to look at the documents. I want you to make your own decision. Mr. Lynch >> I need my last minute. Mr. Cohen >> sorry, sir. Mr. Lynch >> That's okay. Let me just say 120002 >> I don't think my colleagues on the other side of the aisle are afraid that you're going to lie. I think they're afraid you're going to tell the truth. Mr. Cohen >> Thank you, sir. Mr. Lynch >> I yield back the balance of my time. Mr. Cummings >> Thank you very much. The gentleman from Ohio is that recognized? Mr. Jordan >> I appreciate the gentleman for yielding. I want to respond to Mr. Lynch. I want you to think about this. When have you seen a Federal agency where this has happened? James Colmey director, fired. Andy McCabe, deputy director. Fired. Lied three times under oath. Under investigation right now. As we speak 120030 >> Jim baker FBI counsel demoted and currently under investigation by the U.S. Attorney's office in Connecticut. Lisa Page demoted and then left and the counterintelligence, demoted and then fired. That's what happened. That's what we're concerned about and today we actually asked for Rod Rosenstein, oh, by the way, we now know three people have told us rod Rosenstein actually was contemplating using the 25th amendment to remove the guy from Presidency who the American people put there, and we asked for him to be a witness today and the chairman said no 120102 >> and instead we get 30 minutes from a guy who is going to prison -- going to prison in two months for lying to congress. Mr. Cohen, I've got two quick questions before I yield back to my colleague. Mr. Hice asked you who all you talked to. You spoke to Mr. Schiff and obviously you spoke to Mr. Cummings. You're going in front of both committees. And you are here today and you will be in front of Mr. Schiff's committee tomorrow. Have you spoken to chairman Nadler or anyone on his staff or have your attorneys spoken to Chairman. Nadler. Mr. Cohen >> I don't know about my attorneys 120130 >> I have not spoken to congressman Nadler and I am not -- sir, I am not aware if my attorneys. I can ask them. Mr. Jordan >> You can turn around and ask them. Mr. Cohen >> The answer, sir, is no. Mr. Jordan >> Okay. And you said at this present time Mr. Davis is not getting paid. Are you anticipating him receiving some kind of compensation in the future? Mr. Cohen >> When I start to earn a living. Mr. Jordan >> He's going to wait three years? Wow! Mr. Cohen >> The answer is yes. 120200 Mr. Jordan >> Wow! that's a first. I've never known a lawyer to wait three years to get paid. Mr. Cohen >> I guess he thinks it's important. Mr. Jordan >> All right. With that I yield to the gentleman from Arizona. Mr. Gosar >> Well thank you. Mr. Cohen, you know, you are a disgraced lawyer. I mean you've been disbarred. I'm sure you remember, maybe you don't remember, duty of loyalty, duty of confidentiality, attorney-client privilege. I think the gentleman over your right side actually understands that very, very well and wouldn't do what you are doing here today. 120231 >> So let's go back at this credibility. You want us to make sure that we think of you as a real philanthropic icon, that you're about justice that you're the person that someone would call at 3:00 in the morning. No, they wouldn't. Not at all. We saw Mr. Cohen dissect you. Right in front of this committee you conflicted your testimony, sir. You're a pathological liar. You don't know truth from falsehood. 120300 Mr. Cohen >> Sir, I'm sorry. Are you referring to me or the president? Mr. Gospar >> Hey, this is my time. Mr. Cohen >> Are you referring to me, sir or the president? Mr. Gospar >> When I ask a question I'll ask for an answer. Mr. Cohen >> Sure. Mr. Gospar >> Are you familiar with Rule 35 of the federal rules of criminal procedures? Mr. Cohen >> I am now. Mr. Gospar >> Oh! So you understand that you've been in contact with the southern district of New York, is that true? Mr. Cohen >> I am in constant contact with the southern district of New York regarding ongoing investigations. Mr. Gospar >> And part of that application is to reduce sentencing time, is it not? 120333 Mr. Cohen >> There is a possibility -- Mr. Gospar >> Yes. The answer is yes. Mr. Cohen >> No it's not, sir. Mr. Gospar >> Yes it is. So testimony here can actually help you out in getting your sentence lessened, isn't that true? Mr. Cohen >> I'm not really sure how my appearance here today is providing substantial information that the southern district can use for the creation of a case. Now, if there is something that this group can do for me I would gladly welcome it. 120359 Mr. Gospar >> Well, I've got to tell you. America's watching you. I've been getting texts right and left and say how can anyone listen to this pathological person. He's got a problem. He doesn't know fact from fiction and that's what's sad here. You didn't do this for Donald Trump to protect Donald Trump. You did it for you. This is all about you. This is all about this Twitter feed and let me re-run those. Another one. Women who love and support Michael Cohen, strong, 120430 >> pitbull, sex symbol, no nonsense. Business oriented and ready to make a difference. Mr. Cohen >> 1,000 followers? Mr. Gospar >> Ready to make a difference against the law? That's pretty sad. Over and over again, we wanted to have trust. It's built on the premise that we're truthful that we come forward, but there's no truth with you whatsoever and that's why that's important to you to look up here and look at the old adage that our moms taught us, liar, liar, pants on fire. No one shou ld ever listen to you and give you credibility. 120502 >> It's sad. It's sad that we have come. In fact, I want to quote the chairman's very words. This is a real -- hold on. Mr. Cummings The gentleman's time has expired. Mr. Gospar >> A sad day. Mr. Cooper >> Mr. Cohen, several times in your testimony you state the bad things that you did for Mr. Trump 120533 >> and at some point you apparently changed your course of action as a recurring refrain in your testimony that says, and yet I continued to work for him, but at some point you changed. What was the breaking point at which you decided to start telling the truth? Mr. Cohen >> There are several factors. Helsinki, Charlottesville, 120602 >> watching the daily destruction of our civility to one another, putting up silly things like this. >> That's silly. Mr. Cohen >> Really unbecoming of congress. It's that sort of behavior that I'm responsible for. I'm responsible for your silliness because I did the same thing that you're doing now for ten years. I protected Mr. Trump 120631 >> for ten years and the fact that you pull up a news article that has no value to it and you want to use that as the premise for discrediting me, that I'm not the person that people called at 3:00 in the morning would make you inaccurate. In actuality, it would make you a liar which puts you into the same position that I am in, and I can only warn people the more people that follow Mr. Trump as I did blindly are going to suffer the same consequences that I'm suffering. 120704 Mr. Cooper >> What warning would you give young people who are tempted as you were, would you encourage them not to wait ten years to see the light? What advice would you give young people, in particular young lawyers, so they do not abuse their bar license as you did. Mr. Cohen >> Look at what's happened to me? I had a wonderful life. I have a beautiful wife. I have two amazing children. I -- I achieved financial success 120732 >> by the age of 39. I didn't go to work for Mr. Trump because I had to. I went to work for him because I wanted to, and I've lost it all. So if I'm not a picture-perfect -- that's the picture that should be up there. If I'm not a picture-perfect example of what not to do that's the example that I'm trying to set for my children. You make mistakes in life and I've owned them and I've taken responsibility for them, and I'm 120800 >> paying a huge price as is my family. So if that in and of itself isn't enough to dissuade somebody from acting in the callous manner that I did I'm not sure that person has any chance very much like I'm in right now. Mr. Cooper >> A recurring theme in your testimony is concern for your family's safety. What, specifically, are you most concerned about? Mr. Cohen >> Well, the president, unlike my Cohen for Trump that has 1,000 followers, 120830 >> he's got over 60 million people and when Mr. Trump turned around early in the campaign and said I can shoot somebody on fifth avenue and get away with it, I want to be very clear. He's not joking. He's telling you the truth. You don't know him. I do. I've sat next to this man for ten years, and I watched his back. I'm the one who started the campaign, and I'm the one who continued in 2015 to promote him. 120900 >> There were so many things I thought that he can do that are great and he can and is doing things that are great, but this destruction of our civility to one another is out of control and when he goes on Twitter and he starts bringing in my in-laws, my parents, my wife, what does he think is going to happen? He's causing -- he's sending out the same message that he can do whatever he wants. This is his country. He's becoming an autocrat and hopefully something bad will happen to me or my children or my wife 120932 >> so that I will not be here and testify. That's what his hope was, was to intimidate me, and again, I thanked everybody who joined and said that this is just not right. Mr. Cooper >> Have you ever seen Mr. Trump personally threaten people with physical harm? Mr. Cohen >> No. He would use others. Mr. Cooper >> He would hire other people to do that? Mr. Cohen >> I'm not so that he had to hire them. They were already working there. Everybody's job at the Trump organization is to protect Mr. Trump. 121007 >> Every day most of us knew we were coming in and we were going to lie for him on something, and that became the norm and that's exactly what's happening right now in this country and it's exactly what's happening here in government, sir. Mr. Cooper >> Thank you, Mr. Chairman. My time has expired. Mr. Cummings >> Mr. Armstrong? Mr. Armstrong >> Thank you. 121030 Mr. Cohen >> Mr. Chairman, can we take a break? Mr. Cummings >> Not right now. Mr. Cohen >> Okay. >> All right. [ Inaudible ] Mr. Cohen >> I did, sir. Mr. Cohen >> That's okay. Thank you, sir. [ Inaudible ] Thank you. RECESS 121101

1130 COHEN HRG SWITCH FS10 81 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the back of Kazakhstan? Mr. Cohen >> It's not a bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's knowledge or direction? Mr. Cohen >> Everything was done with the knowledge and at the direction of Mr. Trump. Mr. Clay >> Tell us why he would do that and what purpose did it serve. Mr. Cohen >> It depends upon the situation. There were times that I was asked, again with Allen Weissleberg, 114501 the CFO, to go back to speak with an individual from Forbes, because Mr. Trump wanted each year to have his net worth rise on the Forbes wealthiest individuals list. And so what you do is you look at the assets and you try to find an asset that has say, for example, 40 Wall Street, which is 114530 >> about 1.2 million square feet. Find an asset that is comparable, find the highest price per square foot that's achieved in the area and apply it to that building. Or if you're going off of your rent roll, go by the gross rent roll times a multiple and you make up the multiple which is something he had talked about. It's based upon what he wanted to value the asset at. Mr. Clay >> You know, you have provided this committee with copies 114601 >> of the president's financial statements or parts of them from 2011, 2012 and 2013. And Mr. Chairman, I would like to submit those for the record. Mr. Chairman, I'd like to submit the statements to the record. Mr. Cummings >> Without objection, so ordered. Mr. Clay >> Thank you. Can you explain why you had these financial statements and what you used them for? Mr. Cohen >> So these financial statements were used by me for two purposes. 114603 >> One was discussing with media whether it was Forbes or other magazines, to demonstrate Mr. Trump's significant net worth.That was one function. Another was when we were dealing later on with insurance companies, we would provide them with these copies so that they would understand that the premium, which is based sometimes upon the individual's 114700 >> capabilities to pay, would be reduced. Mr. Clay >> And all of this was done at the President's direction and with his knowledge? Mr. Cohen >> Yes. Because whatever the numbers would come back to be, we would immediately report it back. Mr. Clay >> And did this information provided to us inflate the president's assets? Mr. Cohen >> I believe these numbers are inflated. Mr. Clay >> And of course, 114731 >> inflating assets to win a newspaper poll to boost your ego is not a crime. But to your knowledge, did the president ever provide inflated assets to a bank in order to help him obtain a loan? Mr. Cummings >> The gentleman's time has expired, but you may answer that question. Mr. Cohen >> These documents and others were provided to Deutsche Bank on one occasion where I was with them in our attempt to obtain 114801 >> money so we can put a bid on the Buffalo bills. Mr. Clay >> Thank you for your answer. Mr. Cummings >> Mr. Hice of Georgia Mr. Hice >> I'd like to yield a second to the gentleman from North Carolina. Mr. Meadows >> I thank the gentleman for yielding. I want to ask unanimous consent to put into the record an article from stat which indicated that Mr. Cohen's promised access, not just Trump, but also the circle around him, it was almost as if we were hiring a lobbyist, close quote. I ask unanimous consent. Mr. Cummings >> Without objection. 114830 Mr. Meadows >> I ask unanimous consent that we put into the record a criminal referral for violating section 22 USC of the statute number 611. I ask unanimous consent that my letter referring Mr. Cohen for violating Fara for illegal lobbying activity be entered into the record. Mr. Cummings >> Without objection, so ordered. Mr. Meadows >> I asked unanimous consent that the first order of business for this committee is for us to look in a bipartisan 114900 way at criminal referrals at the next business meeting. Mr. Cummings >> These are not documents. There are objections. Mr. Meadows >> So we're objecting to a unanimous consent request? Mr. Chairman? Mr. Cummings >> Yes. Mr. Meadows >> I will yield back. Mr. Cummings >> Let me be clear. Mr. Hice, I'm going to give you your whole five minutes, alright? 114930 Mr. Hice >> Thank you, Mr. Chairman. Mr. Cummings >> In fairness to you. Mr. Meadows, the chairman, the ranking member made me aware that I had given a little more time to Ms. Wasserman-schultz. I was going to let you do that anyway, but I just want the committee to know that because there are so many members, I'm going to be strict on this five minutes, all right? Thank you very much. Mr. Hice, you have five minutes. 114959 Mr. Hice >> Thank you, Mr. Chairman. Cohen you said you lied, but you're a liar. If you lied you are a liar by definition. You also said a moment ago that the facts are inaccurate. If they are facts they are accurate and that would make you inaccurate, but I would like to take a moment and I would like to know who you consulted with to prepare for today's hearing? Lanny Davis and who else? Mr. Cohen >> I consulted with my counsel, Lanny Davis as well as Michael Monaco. Mr. Hice >> All right. Did you or Michael 115030 >> or Lanny Davis or anyone else cooperate with the Democratic majority to prepare for this hearing? Mr. Cohen >> I'm sorry, say that again, please? Mr. Hice >> Did you or anyone else on your team cooperate with the Democrat party in preparing for this hearing? Mr. Cohen >> We've spoken to the party. Mr. Hice >> Okay. Did you prepare with chairman Cummings or anyone on your team? Mr. Cohen >> What do you mean by prepare? Mr. Hice >> Prepare for this hearing? Mr. Cohen >> Prepare? I prepared with my counsel. Mr. Hice >> Did you prepare with the 115100 >>Democrat majority or chairman Cummings. Mr. Cohen >> We spoke with chairman Cummings and the party. Mr. Hice >> With chairman Schiff? Mr. Cohen >> I spoke with chairman Schiff and his people, as well. Mr. Hice >> Were there any other individuals acting as a liaise for you and your party. Mr. Cohen >> I'm sorry, sorry, what did you say? Mr. Hice >> Did you have a liaison other than who you mentioned that were working with the majority to prepare for this hearing? 115134 Mr. Cohen >> Liaison. We spoke with various individuals that you just raised, yes. Mr. Hice >> Tom Steyer, him or any of his representatives or anyone associated with him, any of them paying Lanny Davis to represent you? Mr. Cohen >> Not that I'm aware of. Mr. Hice >> Who is paying Lanny Davis? Mr. Cohen >> At the moment no one. Mr. Hice >> He is doing all this work for nothing? Mr. Cohen >> yes, sir. 115200 Mr. Hice >> Okay. Mr. Cohen >> And I hope so. [ Laughter ] Mr. Hice >> I kind of doubt it, but -- how did Lanny Davis come to represent you? Did he approach you or did you approach him? Mr. Cohen >> I reached out to Lanny Davis at the recommendation of my former counsel over at McDermott, Will & Emory who knew Mr. Davis and Mr. -- Mr. Hice >> So you reached out to Mr. Davis? 115230 Mr. Cohen >> I did, yes, initially. Mr. Hice >> Okay. So did you want to testify before Congress or did he urge you to testify here? Mr. Cohen >> I was asked to come here, and I am here, sir, voluntarily because it's my decision -- Mr. Hice >> By who? My question, did he ask you to come here? Mr. Cohen >> No, sir. Mr. Hice >> Okay because he says that he did ask you to come here and that he convinced you and also that he did the same with 115300 >> Chairman Cummings, as well. So your testimony here is that you approached Lanny Davis to represent you and to come here. He did not persuade you to come here? Mr. Cohen >> He did not persuade me. Actually, chairman Cummings, which was part of the conversations that we engaged in with his people as well as chairman Schiff and others, we spoke in order to ask me to come here voluntarily. 115329 Mr. Hice >> I find the connecting of the dots here with -- with Mr. Davis and you and frankly the chairman and perhaps others to be rather stunning that there is an agenda for all this happening here today, and I believe, frankly, that that's to bring the President down, to impugn the President. You made an oath last time you were here and that oath meant nothing to you then. We had an oath here in this very room about a month ago, 115401 >> and it was, quote, be clear that I will seek the truth, nothing but the truth so help me god, end quote. It sounds like an oath to me. The Chairman made that statement in this very room last month and here we are today, our first big hearing, with you as we all know a convicted liar, lying to Congress, a criminal, and I believe this witness is totally incompatible with the stated goal of having to seek the truth in this hearing. 115437 >> This is the first time in the history of Congress we have someone testifying here who has already been convicted of lying to Congress so congratulations for being the first in Congress to do that Mr. Cohen >> thank you Mr. Hice >> and Mr. Cummings as well? I can't believe we have brought this committee to its knees in terms of losing its credibility and it's a shameful mockery of what our purpose is. I yield back. 115502 Mr. Cummings >> The gentleman's time has expired. Mr. Lynch. Mr. Lynch >> Let me just pick up on those last comments. Want to talk about a low point? How about Mr. Papadopoulos pled guilty, Mr. Manafort convicted, pled guilty to two other charges. Mr. Gates pled guilty, Mr. Flint pled guilty, Mr. Vanders pled guilty, Mr. Kilimnik indicted for obstruction of justice and for two years 115530 >> you want to talk about an agenda, my friends on the other side of the aisle refuse to bring any of these people up before the committee. So today for the first day we have one witness who voluntarily is coming forward to testify. Your side ran away and we are trying to bring it to the American people. So, Mr. Cohen - Mr. Cohen >> Sir? Mr. Lynch >> Thank you for voluntarily coming before the committee to testify. 115600 >>I want to ask you about your statements regarding Trump Tower and Moscow, and I want to drill down some of the facts and details. Now you may not be aware of it, but this goes back a ways. Back in 1987, Mr. Trump wrote that he'd had ongoing discussions with Soviet officials back then to build a luxury, a large luxury hotel across from the Kremlin in partnership with the Soviet Union. So at that time it was the Soviet Union. 115632 >> I want to ask you, in your filing with the special counsel, Mueller's office, the prosecutors wrote and I quote, Mr. Cohen discussed the status and progress of the Moscow project with individual 1 on more than the three occasions Mr. Cohen claimed to the committee and he briefed family members of individual 1 with the company about the project. I know this is redundant, but Mr. Cohen, 115700 >>who were you referring to here when we refer to individual 1? Mr. Cohen >> Donald J. Trump. Mr. Lynch >> Okay. And the company? Mr. Cohen >> The Trump organization through a subsidiary. Mr. Lynch >> Okay. And who were the family members that you briefed on the Trump tower Moscow project? Mr. Cohen >> Don Trump Jr. And Ivanka Trump. Mr. Lynch >> Okay. Now were these in the regular course of business or did the president or family request the briefings? Mr. Cohen >> This is in the regular course of business. Mr. Lynch >> Do you recall, there is a question on the number of briefings, 115731 >>do you recall how many there might have been? Mr. Cohen >> I'm sorry, sir? Mr. Lynch >> Do you recall how many of these briefings there might have been? Mr. Cohen >> Approximately ten in total. Mr. Lynch >> All right. In your written remarks you also wrote and I quote, there were at least a half dozen times between the Iowa caucus in January 2016 and the end of June when Mr. Trump would ask me, how is it going in Russia referring to the Russia Moscow tower project. How did the president communicate those questions to you? Was it verbally or over the phone? 115803 Mr. Cohen >> Verbally most of the time. Virtually all of the time. It would -- he said say Michael -- he was reading to say a rally or to a car as I would walk him to the elevator he would ask me questions quickly regarding a series of issues. Mr. Lynch >> Could you tell what he was referring to in terms of the project in Russia? Mr. Cohen >> No, this would be it. Otherwise there would be no reason to ask it of me. Mr. Lynch 115829 >> Right. Right. You also wrote and I quote, to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it, closed quote. How did the president actually direct the negotiations? What details did he direct? Mr. Cohen >> Well, after each communication that I had I would report back to him and our goal was to get this project. We were interested in building what 115900 >> would have been the largest building in all of Europe. Sir, I -- if I can say one last thing. Mr. Lynch >> Please, go ahead. Mr. Cohen >> -- In regard to the gentleman's statements since this is on topic. The lies that I told to Congress in fairness, benefited Mr. Trump. It was in furtherance of my protection of Mr. Trump which I stated in my testimony, and I am not protecting Mr. Trump anymore, and so while I truly 115931 >> appreciate taking some of your time, to attack me every single time about taxes, I have no credibility, it's for exactly that reason that I spent the last week searching boxes in order to find the information that I did. So that you don't have to take my word for it. I don't want you to. I want you to look at the documents. I want you to make your own decision. Mr. Lynch >> I need my last minute. Mr. Cohen >> sorry, sir. Mr. Lynch >> That's okay. Let me just say 120002 >> I don't think my colleagues on the other side of the aisle are afraid that you're going to lie. I think they're afraid you're going to tell the truth. Mr. Cohen >> Thank you, sir. Mr. Lynch >> I yield back the balance of my time. Mr. Cummings >> Thank you very much. The gentleman from Ohio is that recognized? Mr. Jordan >> I appreciate the gentleman for yielding. I want to respond to Mr. Lynch. I want you to think about this. When have you seen a Federal agency where this has happened? James Colmey director, fired. Andy McCabe, deputy director. Fired. Lied three times under oath. Under investigation right now. As we speak 120030 >> Jim baker FBI counsel demoted and currently under investigation by the U.S. Attorney's office in Connecticut. Lisa Page demoted and then left and the counterintelligence, demoted and then fired. That's what happened. That's what we're concerned about and today we actually asked for Rod Rosenstein, oh, by the way, we now know three people have told us rod Rosenstein actually was contemplating using the 25th amendment to remove the guy from Presidency who the American people put there, and we asked for him to be a witness today and the chairman said no 120102 >> and instead we get 30 minutes from a guy who is going to prison -- going to prison in two months for lying to congress. Mr. Cohen, I've got two quick questions before I yield back to my colleague. Mr. Hice asked you who all you talked to. You spoke to Mr. Schiff and obviously you spoke to Mr. Cummings. You're going in front of both committees. And you are here today and you will be in front of Mr. Schiff's committee tomorrow. Have you spoken to chairman Nadler or anyone on his staff or have your attorneys spoken to Chairman. Nadler. Mr. Cohen >> I don't know about my attorneys 120130 >> I have not spoken to congressman Nadler and I am not -- sir, I am not aware if my attorneys. I can ask them. Mr. Jordan >> You can turn around and ask them. Mr. Cohen >> The answer, sir, is no. Mr. Jordan >> Okay. And you said at this present time Mr. Davis is not getting paid. Are you anticipating him receiving some kind of compensation in the future? Mr. Cohen >> When I start to earn a living. Mr. Jordan >> He's going to wait three years? Wow! Mr. Cohen >> The answer is yes. 120200 Mr. Jordan >> Wow! that's a first. I've never known a lawyer to wait three years to get paid. Mr. Cohen >> I guess he thinks it's important. Mr. Jordan >> All right. With that I yield to the gentleman from Arizona. Mr. Gosar >> Well thank you. Mr. Cohen, you know, you are a disgraced lawyer. I mean you've been disbarred. I'm sure you remember, maybe you don't remember, duty of loyalty, duty of confidentiality, attorney-client privilege. I think the gentleman over your right side actually understands that very, very well and wouldn't do what you are doing here today. 120231 >> So let's go back at this credibility. You want us to make sure that we think of you as a real philanthropic icon, that you're about justice that you're the person that someone would call at 3:00 in the morning. No, they wouldn't. Not at all. We saw Mr. Cohen dissect you. Right in front of this committee you conflicted your testimony, sir. You're a pathological liar. You don't know truth from falsehood. 120300 Mr. Cohen >> Sir, I'm sorry. Are you referring to me or the president? Mr. Gospar >> Hey, this is my time. Mr. Cohen >> Are you referring to me, sir or the president? Mr. Gospar >> When I ask a question I'll ask for an answer. Mr. Cohen >> Sure. Mr. Gospar >> Are you familiar with Rule 35 of the federal rules of criminal procedures? Mr. Cohen >> I am now. Mr. Gospar >> Oh! So you understand that you've been in contact with the southern district of New York, is that true? Mr. Cohen >> I am in constant contact with the southern district of New York regarding ongoing investigations. Mr. Gospar >> And part of that application is to reduce sentencing time, is it not? 120333 Mr. Cohen >> There is a possibility -- Mr. Gospar >> Yes. The answer is yes. Mr. Cohen >> No it's not, sir. Mr. Gospar >> Yes it is. So testimony here can actually help you out in getting your sentence lessened, isn't that true? Mr. Cohen >> I'm not really sure how my appearance here today is providing substantial information that the southern district can use for the creation of a case. Now, if there is something that this group can do for me I would gladly welcome it. 120359 Mr. Gospar >> Well, I've got to tell you. America's watching you. I've been getting texts right and left and say how can anyone listen to this pathological person. He's got a problem. He doesn't know fact from fiction and that's what's sad here. You didn't do this for Donald Trump to protect Donald Trump. You did it for you. This is all about you. This is all about this Twitter feed and let me re-run those. Another one. Women who love and support Michael Cohen, strong, 120430 >> pitbull, sex symbol, no nonsense. Business oriented and ready to make a difference. Mr. Cohen >> 1,000 followers? Mr. Gospar >> Ready to make a difference against the law? That's pretty sad. Over and over again, we wanted to have trust. It's built on the premise that we're truthful that we come forward, but there's no truth with you whatsoever and that's why that's important to you to look up here and look at the old adage that our moms taught us, liar, liar, pants on fire. No one shou ld ever listen to you and give you credibility. 120502 >> It's sad. It's sad that we have come. In fact, I want to quote the chairman's very words. This is a real -- hold on. Mr. Cummings The gentleman's time has expired. Mr. Gospar >> A sad day. Mr. Cooper >> Mr. Cohen, several times in your testimony you state the bad things that you did for Mr. Trump 120533 >> and at some point you apparently changed your course of action as a recurring refrain in your testimony that says, and yet I continued to work for him, but at some point you changed. What was the breaking point at which you decided to start telling the truth? Mr. Cohen >> There are several factors. Helsinki, Charlottesville, 120602 >> watching the daily destruction of our civility to one another, putting up silly things like this. >> That's silly. Mr. Cohen >> Really unbecoming of congress. It's that sort of behavior that I'm responsible for. I'm responsible for your silliness because I did the same thing that you're doing now for ten years. I protected Mr. Trump 120631 >> for ten years and the fact that you pull up a news article that has no value to it and you want to use that as the premise for discrediting me, that I'm not the person that people called at 3:00 in the morning would make you inaccurate. In actuality, it would make you a liar which puts you into the same position that I am in, and I can only warn people the more people that follow Mr. Trump as I did blindly are going to suffer the same consequences that I'm suffering. 120704 Mr. Cooper >> What warning would you give young people who are tempted as you were, would you encourage them not to wait ten years to see the light? What advice would you give young people, in particular young lawyers, so they do not abuse their bar license as you did. Mr. Cohen >> Look at what's happened to me? I had a wonderful life. I have a beautiful wife. I have two amazing children. I -- I achieved financial success 120732 >> by the age of 39. I didn't go to work for Mr. Trump because I had to. I went to work for him because I wanted to, and I've lost it all. So if I'm not a picture-perfect -- that's the picture that should be up there. If I'm not a picture-perfect example of what not to do that's the example that I'm trying to set for my children. You make mistakes in life and I've owned them and I've taken responsibility for them, and I'm 120800 >> paying a huge price as is my family. So if that in and of itself isn't enough to dissuade somebody from acting in the callous manner that I did I'm not sure that person has any chance very much like I'm in right now. Mr. Cooper >> A recurring theme in your testimony is concern for your family's safety. What, specifically, are you most concerned about? Mr. Cohen >> Well, the president, unlike my Cohen for Trump that has 1,000 followers, 120830 >> he's got over 60 million people and when Mr. Trump turned around early in the campaign and said I can shoot somebody on fifth avenue and get away with it, I want to be very clear. He's not joking. He's telling you the truth. You don't know him. I do. I've sat next to this man for ten years, and I watched his back. I'm the one who started the campaign, and I'm the one who continued in 2015 to promote him. 120900 >> There were so many things I thought that he can do that are great and he can and is doing things that are great, but this destruction of our civility to one another is out of control and when he goes on Twitter and he starts bringing in my in-laws, my parents, my wife, what does he think is going to happen? He's causing -- he's sending out the same message that he can do whatever he wants. This is his country. He's becoming an autocrat and hopefully something bad will happen to me or my children or my wife 120932 >> so that I will not be here and testify. That's what his hope was, was to intimidate me, and again, I thanked everybody who joined and said that this is just not right. Mr. Cooper >> Have you ever seen Mr. Trump personally threaten people with physical harm? Mr. Cohen >> No. He would use others. Mr. Cooper >> He would hire other people to do that? Mr. Cohen >> I'm not so that he had to hire them. They were already working there. Everybody's job at the Trump organization is to protect Mr. Trump. 121007 >> Every day most of us knew we were coming in and we were going to lie for him on something, and that became the norm and that's exactly what's happening right now in this country and it's exactly what's happening here in government, sir. Mr. Cooper >> Thank you, Mr. Chairman. My time has expired. Mr. Cummings >> Mr. Armstrong? Mr. Armstrong >> Thank you. 121030 Mr. Cohen >> Mr. Chairman, can we take a break? Mr. Cummings >> Not right now. Mr. Cohen >> Okay. >> All right. [ Inaudible ] Mr. Cohen >> I did, sir. Mr. Cohen >> That's okay. Thank you, sir. [ Inaudible ] Thank you. RECESS 121101

TVU 10 ANDREW YANG NASHUA NH TOWN HALL ABC UNI 123019 2020 GAGGLE LOGGED IN PART FROM NNS O2 COVERAGE 1505032 Q>> You signed a letter for Booker this month saying we should revert to earlier qualification standards. Are you contradicting yourself not by saying polls should be consistently raised? YANG>> I was for lowering polling standards to help make the debate stage more diverse. DNC very clearly said, hey, we're gonna elevate the standards and so, our response now in this situation was: if you're going to elevate the standards, you need to have polls. Like, how can you raise the standards and the not have a poll for 47 days? 150614 So, that's where we are right now, I would be thrilled if they decided to go back on the announce standard but I thought that was unlikely after they announced it. We're trying to influence what they were going to announce, before the fact if you remember. Q: I guess even now you would be diversifying the debate stage still all white at this moment if you agree to previous debate standards (?) 150636 YANG: so I would be thrilled if they ran polls, I would be thrilled if they reverted to earlier standards. Q: (?) 150647 YANG: we're just being nice by saying standards. [laughs] Q: Is there anything the DNC can do aside from spending their own resources (?) polls. 150719 YANG: nothing is preventing the DNC from reaching out to any of the poll organizations and saying hey, when is your next poll going to be in each of these states? And if they heard back that it was not going to be in time for the Jan 10th deadline they should say why don't you start it as soon as possible? And if there's any cost involved, we can help with that cost. 150741 The DNC saying we can do nothing about it seems disingenuous because they can clearly reach out to any of the approved poling organizations that asked for a poll to be conducted in any given timeline. Q: CA personal data is breached the are allowed to sue the company. What are your thoughts? 150805 YANG: I think that sort of policy is overdue but I would go a step further: it's not just that we can sue if our data is breached, we should be privy to our data even when it's not being breached. We should own our data as our property and if we're deciding to loan it to technology companies - -150821 And if it's getting sold, and resold, or if the tech companies are profiting from it, we should know about that and we should be able to share in the value. SO I love the law, I just don't think it goes far enough to make our data our own property. Q>> Healthcare -- M4A is the name of Sander's bill, your website still lists M4A as a platform of the campaign. Is it confusing to use that term when it is not what the actual bill or policies that Warren and Sanders' are? 150913 YANG>> To me, MEdicare for All means universal healthcare for all Americans, and that's where we should be driving as quickly as possible. We need to get healthcare access up and the costs down to a level where Americans can get the healthcare that they want and deserve. Healthcare should be a human right here in this country, instead of a means for companies to make money off of us. 150940 Q>> But your version and Sanders' mean very different things. Would you consider rebranding your plan? YANG>> Again, I think Medicare for All means universal healthcare to me and other Americans. 151000 And I think that if anyone spends anytime with us, they can see our vision for the healthcare system. Q: we have come to believe that Sanders bill is the definition of Medicare for all, does it feel like you're sort of taking the definition and sort of redefining it? 151025 YANG: I guarantee that virtually no Americans have actually read the proposal anda so if you were to say the proposed bill that Senator Sanders put forward, so if you say Medicare for all to most americans, I don't think that they are thinking about Senator Sander's bill because they haven't gotten into the weeds in reviewing that bill. TVU 10 ANDREW YANG NASHUA NH TOWN HALL ABC UNI 123019 2020 151031 YANG>> .. What I think and what I believe most Americans think when they hear Medicare for All is we should all have healthcare. ## TOWN HALL HIGHLIGHTS 16 Year Old 145702 Q: Mr. Yang, I was at your Hanover Town Hall event about a month ago and, just a quick disclaimer, this could be a little bit long, but I'll get this as short as possible because this is the best way I can get my message out to people, but -- and I think this would encapsulate, kind of, what we're all thinking. So, Mr. Yang, there has not been a poll in an early state released in 47 days. Tom Perez, the Chairman of the DNC, just rejected your request for the DNC to conduct and release more early state polls, essentially cutting off a vital pathway to the January debate. 145736 On Perez's twitter biography, he writes and I quote, "Likes the Buffalo Bills, the Democrats, and fighting for the little guy. Though, not in that order." Well, apparently, he doesn't like fighting for the little guy who has over 400,000 donors including some [inaudible] right in New Hampshire which -- would you look at that -- is an early state. So, to the people in the room, we have a chance to outraise Elizabeth Warren in the 4th quarter [audience member howls] 145803 And I'm gonna look towards kinda the biggest camera in the room but, if there is someone from the DNC watching -- oh, shoot, where am I? [laughter] -- if there's someone from the DNC watching, look at the crowd. We've crammed over 100 people into a room built for 30. There are people watching from out the door. Poll the people, is my point. I cannot even vote in the 2020 general election, but I am the most passionate about this than I have -- than anything I have been in a long time. 145837 YANG>> Give me a high five, man. [laughter / applause] [they hug] Q: So, Tom Perez, fight for the little guy. Fight for all the little guys in this room. Fight for the american people. Poll the people. [audience members shout "poll the people"] It seems like we're not gonna get much help in this process. So, to the people over 18 years old, keep phone banking, keep canvassing, keep Yanging people, keep making America think harder. 145907 Because we all know it's not left, it's not right, it's forward. And I'm apart of the Yang gang because I'm scared of the future in America. And in my age group, I am not alone. So, Mr. Yang, do you have any thoughts on the issue [laughter/applause] 145924 YANG>> My thoughts are you're making me feel better about the future, Ellis, just by being so passionate and articulate and spot-on (?). [applause] You know, that's awesome leadership on your part. I believe we're going to get the polls we need in the right time frame and I'll be on that debate stage in January. MEDICARE FOR ALL 145250 Q>> This phrase "Medicare for All" has become almost a branded phrase at this point. To what extent are you anchored specifically and explicitly to Medicare for All as it's written as a phrase? And what extent would universal healthcare be a more useful phrase? 145324 YANG>> I like where your head's at, Kurt. To me, Medicare for all is universal healthcare for all Americans. It's not the name of a bill, it's a name for trying to get every American healthcare independent of their work status or whether or not they can like afford certain levels of premiums. Now, I'm not someone who thinks you can uproot private insurance plans quickly, because you're talking about millions of Americans on these plans. In some cases, they actually negotiated away higher salaries for the plans, so somehow legislating those out of existence very quickly, seems to me to be unduly impractical slash disruptive. 145402 So the plan to me should be for the government to provide a public coverage option that then outcompetes the private insurers and squeezes them out over time. Now, to your point, Kurt, it is true Medicare for All means certain things to certain people,and you're probably right that universal healthcare would be a better way to frame it. ## TRINT TVU 10 ANDREW YANG NASHUA NH TOWN HALL ABC UNI 12.Sub.01.wav [14:15:34] There's one like, oh, yes. Voice amplification, it's great to be back here in New Hampshire. Tracey, you missed the most important thing. I graduated from Phillips Exeter Academy in 1992. [14:15:49] That's a pretty tepid applause. [14:15:52] But here in the U.S., it's OK. I was invited back to speak at a number of months ago. [14:15:59] And when I spoke, I said this my first time back since I graduated because I didn't enjoy myself here. And the student body erupted in applause. [14:16:10] I felt really bad. [14:16:11] That wasn't the reaction I was going for. And as Tracy said, after I graduated from Exeter, I went to Brown and then Columbia. And then I became an unhappy lawyer in New York City for five months. [14:16:23] And somehow she gets a along. [14:16:26] And I left the firm to try and start a business. How many of you? Because it's the Chamber of Commerce. How many of you've started a business or organization or club or list. So if you have your hand up, you know, two things. Number one, it's much harder than anyone lets on in. Number two, when someone asks you how it's going, what do you say? It's going great. Everything's always going great. My business went great until it failed. My parents told people I was still a lawyer because there was a much easier story, but I'd been bitten by the bug. [14:17:00] I worked at another small company and then another, and then I became the head of an education company that grew to become number one in the United States and was bought by a bigger company. Now, 2009 is like it's a decade ago. I can't believe it's already been 10 years. That was a very tough time in much of the country. How many of you were here in New Hampshire ten years ago? And how was that time for you in Nashua in 2009? [14:17:24] College. [14:17:26] You're laughing. Were you the Marilyn? [14:17:31] I just want to come in on all of the elected officials and former elected officials, because here in New Hampshire particular, it's a labor of love. You're certainly not doing it for the money or the glory. And I tell people who run for local office, I believe it's harder than running for president because people know where you live. [14:17:52] So the financial crisis 10 years ago racked many of our communities. And I saw this unfold. And I thought I had some insight as to why the economy had collapsed. It was because so many of the wannabe whiz kids, I'd go into Exeter and running Columbia with it gone to Wall Street and helped create derivatives and mortgage backed securities and these exotic financial instruments. And so I thought, well, that's a disaster and that's a train wreck and that's where our energies are going. [14:18:19] So I imagined what I would want our energies to go towards instead. And the vision I came up with was to head to a city like Detroit or Cleveland or Birmingham or Providence and help grow a company to create jobs. So I started a nonprofit called Venture for America, started calling wealthy friends, asking them this question, Do you love America? The smart among them said, What does it mean if I say, Yes? Andrew? And then I said, at least ten thousand dollars. So raised a couple hundred thousand dollars, which grew to the millions, helped create thousands of jobs in 15 cities around the country. [14:18:56] And as Tracy said, I was honored by the Obama administration multiple times. I got to bring my wife to meet the president. So my in-laws are very excited about me that week. [14:19:06] But unfortunately, during my travels, I started having this sinking feeling where for any job that my organization was helping to create. Many of these communities were losing dozens, even hundreds of jobs. I started to feel like my work was pouring water into a bathtub that had a giant hole ripped in the bottom. But I was still surprised when Donald Trump became our president in 2016. How did you all react when he won? [14:19:32] Tears, devastated disbelief. To me, it was a giant red flag that tens of millions of our fellow Americans decided to take a bet on the narcissist reality TV star as president. And even if you were devastated or cried, we all have family members or friends or neighbors who were very excited about his victory. I started to dig into why I thought he won. If you turned on cable news today, why would you think that Donald Trump's our president? [14:20:04] Facebook, Facebook, racism. Russia cared about gods and perhaps emails, but someone shouted out the economy. [14:20:15] That's closer to the truth. When I dug into the numbers, we've automated away 4 million manufacturing jobs over the past number of years. And where were those jobs? [14:20:27] Ohio, Michigan, Pennsylvania, Wisconsin, Iowa, all the swing states that Donald Trump needed to win and did win. And if you doubt this, if you go through the Motor District data, you see that there's a straight line up between the adoption of industrial automation and in a voting district and the movement towards Trump. This happened in New Hampshire, but it happened earlier. You all lost over 12000 manufacturing jobs in the northern part of the state. And when you go to those towns, you see that many of those towns have never recovered. [14:20:59] That after the factory of the plant closed in, the shopping district closed and the population shrank. When I was in Detroit and Cleveland and St. Louis, as you saw, a lot of the same things were in the midst of the greatest economic transformation in the history of our country. Because what happened to the manufacturing jobs is not stopping there. It's now heading to retail call centers, fast food, truck driving and on and on through the economy. [14:21:25] How many of you have noticed stores closing right where you live here in New Hampshire? And why are those stores closing? Amazon? That's right. One word answer. Amazon soaking up 20 billion dollars in business every single year. How much of the Amazon pay in taxes last year? Zero. That's your math. New Hampshire. Twenty billion out. Zero back. Thirty percent of your stores in malls close. Most common job in the economy is retail clerk, average retail clerks, the 39 year old woman making between nine and ten dollars an hour. So if her store closes, what is her next opportunity going to be? [14:21:57] How many of you have seen a self serve kiosk in a fast food restaurant like a McDonald's? Every location in the country in the next two years, starting at the front of the house, they're going to move to the back of the house. When you call the customer service line of a big company and you get the bot or a software, I'm sure you do the exact same thing I do, which is you pound 0 0 0 as a human human and you get someone on the line. How many of you do that? [14:22:19] Yeah, that's always terrible. [14:22:21] But in two or three short years, the software is going to sound like this. Hello, Andrew. How's it going? What can I do for you? It'll be. Seamless, delightful, you might not even realize it software. What does that going to mean for the two and a half billion Americans who work at call centers right now making fourteen dollars an hour? [14:22:41] How many of, you know, a truck driver here in New Hampshire? [14:22:44] It's the most common job in twenty nine states, though. Three and a half million truckers and my friends in California are working on trucks that can drive themselves. [14:22:51] They say they're 98 percent of the way there. A self-driving truck just took 20 tons of butter from California to Pennsylvania about two weeks ago. Totally autonomous. Why butter? I have no idea. But you can actually look IWM can robot butter truck and then it will pop up. What does this mean for the three and a half million Americans who drive a truck for a living? Or the 7 million Americans who work in truck stops, motels and diners that rely upon the truckers getting out and having a meal every day of despair? [14:23:23] These are the forces that are tearing our country apart. Many Americans feel themselves getting left behind and pushed to the sidelines. Corporate profits are at record highs today, also at record highs. United States of America, stress, financial insecurity. How many other college students? I sense many of you. Student loan debt, record highs, not normal. Even suicides and drug overdoses and unfortunately, New Hampshire is one of the epicenters of the opiate epidemic in the country. But eight Americans are dying of drugs every hour in this country right now. So these are the things that people are experiencing on the ground. And it's only going to accelerate as artificial intelligence leaves the lab and starts hitting the economy in earnest. This is not just a blue collar problem. [14:24:11] Artificial intelligence will be able to do the work of bookkeepers, accountants, radiologists, even attorneys. Right now, software can edit a contract more quickly and error free and certainly inexpensively than the most experienced human lawyer. We're in the midst of this economic transformation and for whatever reason, we're scope scapegoating immigrants within the things that immigrants have next to nothing to do with. [14:24:35] So my first move was still not to run for president because I'm not a crazy person. I went to Washington, D.C. and I sat down with our leaders and I said, what are we going to do to help our people manage this transition? What do you think the folks in D.C. said to me when I said, what are we going to do? [14:24:51] They're going to pitch Trump. We don't know nothing. [14:24:55] The three answers I got most frequently were number one. Andrew, we cannot talk about this. Someone suggested Americans wouldn't understand it anyway. Number two, we should study this further. Number three, we must educate and retrain all Americans for the jobs of the future. Which sounds very responsible. Haven't you heard a politician say something like that at some point? Now we all have. Well, then I said, look, I checked the studies. [14:25:21] Do you all want to guess how effective the government funded retraining programs were for the manufacturing workers who lost their jobs 15 percent on anchoring you lower? Because it is low. Zero to 15 percent success rates. Total dud. And when I said this to the folks in D.C., one of them said, well, I guess we'll get better at it. The truth is that the folks in D.C. will do well, whether we do well or not. The feedback mechanism is broken. It's one reason why Donald Trump is our president today. [14:25:50] And one person in DC leveled with me and said something that brought me here to you all. He said, Andrew. During the wrong town. No one here will do anything about this, because Washington, D.C. is fundamentally a town of followers, not leaders. And the only way we will do something about this is if you were to create a wave in other parts of the country and bring that wave crashing down in our heads. That was over two years ago. [14:26:13] I said I will be back with the waves. I accept that challenge. And I stand before you today. I'm fifth in the polls to be the nominee of the Democratic Party. We bring ten million dollars last quarter in increments of only 30 dollars each. So my fans are almost as she does birdies and that 10 million, zero corporate PAC money, all people powered all the grass roots. We just announced today that we're going to do better than that in this coming quarter. We are growing while other campaigns are shrinking because we are solving the actual problems. [14:26:49] I got Donald Trump elected and we have real solutions that would help move the country forward. So what are the solutions? If you're here today and I appreciate you braving the elements and saying I'm going to go see Andrew Yang, even though it's yucky, is it's pretty gross out even. You know, I mean, I grew up in New Hampshire, too. So if you were here today, at some point you heard that this guy wants to give every American a thousand dollars a month. Remember the first time you heard that? [14:27:16] The first time you heard that you were like, ha, ha, that's a gimmick. That's too good to be true. That will never happen. But this is not my idea. It's not a new idea. Thomas Paine was born at the founding of the country. He called it the citizen's dividend. Martin Luther King fought for it in the 1960s, called it the guaranteed minimum income for all Americans. And it is what he was fighting for when he was assassinated in 1968. I had the privilege of sitting with Dr. King's son in Atlanta, Martin Luther King, the third who said, this is what my father was fighting for when he was killed. A thousand economists endorsed it in the 60s. It passed the U.S. House of Representatives twice in 71 under Richard Nixon. [14:27:57] It's called the Family Assistance Plan, which has an income floor for all Americans. And then eleven years later, one state passed a dividend where now everyone in that state gets between one and two thousand dollars a year. No questions asked. And what state is that? New Hampshire. How does Alaska pay for it? And what is the oil of the 21st century technology? A software of self-driving cars and trucks. A study just came out that said that our data is now worth more than oil. How many of you saw that study? How many of you got your data check in the mail? We laugh, but where did the data checks go? Facebook, Amazon, Google, the mega tech companies that are paying zero or near-zero in taxes. That is the game. New Hampshire. Our communities are getting sucked dry and depleted. [14:28:45] We're looking around wondering where the value went. And the biggest winners in the 21st century economy are paying zero in taxes. Well, we have to do is we have to get our fair share. Your fair share. Make sure Amazon is trillion dollar tech company actually is paying taxes. And equally important, we have to put that value into our hands. Into your hands, the hands of the American people. Build a trickle up economy from our people, our families and our communities up. [14:29:12] Because if we put this thousand dollars a month into your hands, where will the money go in real life? I'm going to guess a lot of it's going to stay right here in Nashua, New Hampshire. Right. It's good for the Chamber of Commerce when a business here and be like, well, I think people might be patronizing my business a little more often, but the money would go into car repairs you been putting off and daycare expenses and little league sign ups and local nonprofits and religious organizations. It would create a sustainable path for rural parts of the state that right now are struggling to find it. [14:29:46] It would make our people stronger, healthier, mentally healthier, less stressed out for the students who are laboring under tens of thousands of dollars in student loan debt. It would help to clear that debt. I want to do more to clear that debt independent. I'm giving you a thousand bucks a month because at one point, six trillion is out of control and it's immoral the way it was generated. This thousand dollars a month would help us manage the greatest economic transformation in our country's history. I am friendly with some of the leading technologists in the country. [14:30:15] They tell me, Hey, Andrew, I've seen what's in the lab. And when it comes out, it's going to be. A bigger problem than anyone realizes. You know how that conversation never goes. Andrew, I've seen what's in the lab and everything will be fine. That's not the end of that thought. The more someone known as, the more concerned they are. The folks in DC are decades behind the curve on technology in particular. They got rid of the Office of Technology Assessment in 1995. Congress has literally had zero input on technology issues for 24 years. [14:30:50] Aside from the tech companies themselves, and you can guess what the tech companies have been telling them. So these are the changes that we have to make to rewrite the rules of the 21st century economy. To work for us. To work for you. If you are a young person, you feel like it's not working for you. You're right. It is not working for you. If you were born in the 1940s, the United States of America, there was a ninety three percent chance you're going to do better than your parents. That's the American dream. [14:31:15] That's the American dream that drew my parents here. If you were born in the 1990s, which is some of you, you're down into a 50 50 shot and the numbers declining quick. That's why young people in particular feel like we've left you an economy that doesn't work for you. A mess in addition to climate change. And we have. If you were a young person and you feel distressed or angry about it, I get it. We owe you better. We have to do better for you. We have to start measuring how our economy is doing based upon how you all are doing to see how it's working again. Corporate profits at record highs while our life expectancy is declining, which is more important. Yes, I agree. [14:32:00] And if you think about how we're measuring the value that we're producing, my wife is at home with our two young boys, one of whom is autistic. What is her work included out in our economic measures? Zero. And we know that's nonsense. We know the work she's doing is among the most challenging and important work that anyone does. It's not just her work. The things that we value most are progressively getting zeroed out in American life. It's parenting. Yes, nurturing, caregiving, volunteering, mentoring, coaching, increasingly arts, increasingly journalism. [14:32:38] And our market is going to systematically undervalue the work done by women and underrepresented minorities in particular. We all knew that. We know that women do more of the unrecognized, uncompensated work in our society every single day. So by properly measuring our progress, we can actually see the depth of the problems and then start working to improve on them. So if GDP is this bad to measurement that has less and less relationship with how we're doing and even its inventors had one hundred years ago, this is a terrible measurement of national well-being. We should never use it as that. What would a measurement that actually measure is how you and your family are doing look like? Like what would that measurement be? [14:33:24] Quality of life. Yeah, you could. You can do something about civic engagement. How about mental health and freedom from substance abuse? [14:33:35] How about health? The life expectancy? Ability to retire with dignity, clean air and clean water. We can actually make these the measurements of our society. And as your president. That's exactly what I'll do. I'll say GDP is one hundred years old. It's time for an upgrade. It's past overdue. And here's how we will measure our progress now. [14:33:58] And then we would see we're in a mental health crisis. We would see we're in a wellness recession. We would see that our environment is getting worse and worse and is not included in our current numbers. How many of you all have run a business organization or department or division? Imagine if you had the wrong measurements for that organization. How to do over? [14:34:21] That is where we are right now as a country. [14:34:23] We're getting beaten over the head with GDP headline unemployment and stock market prices and none of those things has much of a relationship with how we're actually doing GDP. I talked about a little bit. Stock market prices. The bottom 80 percent of Americans own 8 percent of stock market wealth. [14:34:38] The bottom 50 percent own essentially zero. Stock market prices correspond to the top 20 percent of society. [14:34:44] If you're generous and headline unemployment doesn't include the fact that millions are dropping out of the workforce, that people are doing two or three jobs to get by, and that 40 percent of recent college grads are doing a job that doesn't require a college degree. So we get the measurements right. We can actually make progress. Donald Trump said in 2016 he was going to make America great again. And what did Hillary Clinton say in response? [14:35:11] America's already great. Remember that? New Hampshire. It has been a long several years. [14:35:16] I know we have to acknowledge that the problems are real and that they are deep in our communities. But we need solutions that would actually help people and move us forward. What we're Donald Trump's solutions going to build a wall to turn the clock back and bring the old jobs back. New Hampshire, we have to do the opposite of these things. We have to turn the clock forward. We have to accelerate our economy and society as quickly as possible to rise the real challenges of this era. We have to evolve in the way we think about ourselves and our work and our value. And I am the ideal candidate for this job, because the opposite of Donald Trump is an Asian man who likes math very much national. [14:36:06] Make America think harder. That's right. That is your job and you're going to help us move the country. Not left, not right, but forward. Thank you very, very much. We're going to be celebrating New Year's Day. I can't wait. [14:36:23] Oh, thank you. So I had this letter and this was still on tonight. But you you hear me? I'll try to project. I'll use my own voice and everyone will write. So let's get a couple of questions. I want to start off and then we'll look to the audience, though, just as a prep for that. If you do have a question and you can use one like that's right there that Samantha is pointing to. And as you get up to ask your question, if you please state your name and if you are with an organization or business, that as well, do you ask a question? [14:36:55] So let me start. So you talk to me about jobs going away because of article and artificial intelligence and different kinds of automation and things like that. But here in New Hampshire, we're actually seeing the opposite of that. We have thousands of jobs left unfilled right now because employers can't find sufficient skilled workers to fill those jobs. How does your economic plan education or taxes for those? How do those policies help business owners right now can't be as successful as they could be because they don't have the people jobs. [14:37:33] Yeah, a lot of it does revolve around education, and many of the employers that are looking for workers are trying to find skilled technical workers, tradespeople. We have a massive national shortage of tower climbers and each fact repair people and people that actually work on the guts of our infrastructure. There are other types of needs and gaps, too. But I'm going to talk about these technical jobs because I think it's just such a massive opportunity. [14:38:00] Only 6 percent of American high school students are in technical or trade. Or apprenticeship programs right now in Germany. [14:38:07] That's fifty nine percent. [14:38:08] Think about that goal. [14:38:10] And we are lagging behind because many employers are looking around saying, I need someone with this sort of training. So we have to get that six person up as quickly as possible. And this has the added benefit of being able to say to our young people, a college is not the end all be all for everyone. Only 33 percent of Americans will graduate from college. And again, we made it more and more expensive. Well, we have to do is create paths forward for different students in different areas and lead them to the opportunities that need to be filled in many, many communities. [14:38:40] I'll also suggest that a lot of the people that are looking to hire, too, would like the headline unemployment rate. It really does obscure a lot of weakness that I see when I talk to folks here in New Hampshire, because if you're doing multiple jobs to make ends meet, you count as employed. If you're underemployed, you count as employed. And if you leave the workforce and stop looking because of a health problem where you're taking care of a relative, you don't get included in that number. So there's a lot of weakness that's being obscured in our communities because we're using a measurement that's way out of date and misleading. [14:39:15] Thank you. I wanted to follow up also on your freedom dividend plan. So last month, do it. That's pretty good to a lot of people. So I did a little bit of simple math. I will admit upfront political science, major math is not necessarily my starting point. Different math with that math. But there are a little over two hundred nine million Americans who would qualify for that at twelve thousand dollars a year, meaning over 2.5 trillion dollars a year to fund that. How does the math actually work that you can tax whatever corporations you want to test come up with that additional revenue every year? [14:39:58] All right. I'm so glad you asked. I love it so much. [14:40:04] So first you have to look at who the biggest winners are going to be if you have Amazon, Google, Facebook systematically paying zero or near-zero in taxes. Then, of course, you going to have problems affording things. But if you put a mechanism in place where we all get even the tiniest slice, our fair share of every Amazon sale, every Google search, every Facebook ad, eventually every robot truck mile and a I work unit generates eight hundred billion dollars a year with a giant up arrow attached to it. So that number is going to shoot up now. A hundred billions, not two point four trillion. As you suggest. [14:40:38] But after you put that no amount of money into our hands, the money doesn't disappear. It circulates through our community and our businesses over and over again, ends up increasing tax revenue by conservatively, let's call it, 600 billion or so. Then here's where the magic comes in. You see an additional hundreds of billions on things like incarceration, homelessness services, emergency room, health care that we spend almost a trillion on now. And it was right here in New Hampshire where our corrections officers had said this to me. He said we should pay people to stay out of jail because he sees how expensive it is when they're in jail. This is what happens in our society. [14:41:18] We don't invest in people that we end up paying in much more expensive and punitive ways when they hit our institutions, because we know our institutions are incredibly expensive. And the last piece, the best piece is that one study showed that if you were to alleviate poverty in this way, you would increase our GDP by 700 billion dollars a year just on the basis of better health and educational outcomes of our people. This is a massive investment in human capital. And this doesn't even take into account the catalyst for entrepreneurship and creativity and value creation that would ensue when having a population that can actually afford to take some risks and not feeling like if they fail, then it's going to mean the difference between having a home and the. [14:42:05] One more. I'm not going to tell you guys. You've had a chance to ask, but, you know, in essence, right now you're with the American people for a very important job. [14:42:15] The leadership position, the CEO feels that someone who was hired many and perhaps fired unless you have advice to the American people as they compare and consider all of the candidates. So what should they do as they check off your qualifications and those of others to make sure they make the right choices? [14:42:38] I love this question so much. I've never gonna do. I love it. [14:42:41] That's true. The chamber. [14:42:50] To me, the most important thing about who we choose as our president is whether they understand the real problems on the ground as we're experiencing them. And that can actually bring solutions to bear to solve them and improve our way of life. I'm going to suggest to you all that technology is the driving force behind many changes in our economy and society. And then most of the other figures in this race, whom I like it, admire a great deal. [14:43:13] And I consider many of the friends, but many of them do not understand technology very well. And they also do not understand technology's intersection with the labor force. Very well at all that if we have the wrong person in that seat, we're going to have another four years of your mall's closing of A.I., getting smarter of the robot trucks starting to multiply in the highways. And that as this continues, it's going to get harder and harder for us to actually put in place a path that lets Americans know that we are not going to be left behind, that we're actually the owners and shareholders of this country and not inputs into a giant capital efficiency machine. [14:43:58] If you don't understand the real problems, you're not going to be able solve them. I believe I have a much clearer understanding of what lies ahead for this country. [14:44:06] Shipped to all of you now. So I feel like yelling questions so we can get your feelings with the business or let us know that as well. [14:44:22] Little branching out with me to the president education co-op. I should go on to the. They're guaranteed in numerous cases and from some of the techniques that the rationale for that obviously is to do with the dislocation that will come from increase in the eye and robotics and automation. But there is an equally strong justification for it. In my view, I wonder if you have time or you just definitely suffered the almighty scientist. [14:45:03] She's come up with a scary statistic because of the exponential rise in the autism. And she's just claims that within 10 years, every other family will be dealing with a child in the optic. This will take a terrific amount of resources to apply for homeowners who typically caretakers in the home that are should and looks spoken to some limitations. But if you come in on this, is it possible other justification and rationale for. [14:45:36] Freedom Dividend, which I like to call detective. Thank you for this question. These are the best questions I received in quite some time. I have a son on the autism spectrum and what I say to families around the country is that special needs is the new normal. Certainly I have not seen a study that suggests it's going to get up to 50 percent, but it's already normal and many millions of families all around the country. And the big problem here is that you have a special needs child like my son who shows up at school and the school says, I don't have the resources available to actually do what this child needs and requires because I have one teacher for my kids and I'll have a budget for this. [14:46:17] And so that child ends up falling through the cracks. The family has to scramble their massive problems. But it's in large part because, again, we're confusing economic value and human value. We're saying that this kid needs more and thus is a burden on the community. Instead of seeing it the way we should be, which is that our kids well-being is the point of the economy, we should use that as a measuring stick, which incidentally means you pay teachers more. You hire more teachers. You lighten up on the standardized tests that we devised during World War Two as a means to identify which kids not to send to the front lines. Now we're just bludgeoning our kids with them, then distorting teacher behavior. [14:46:56] You stop treating your schools like assembly lines and start actually trying to put the resource in place to give our kids what they need. If you change it from this cost model to this investment model, then you see that this is the future of the 21st century economy making ourselves stronger, healthier and more hold. And if we don't evolve in that direction as quickly as possible, then you are correct that many communities will feel themselves to be overwhelmed by the cost of supporting many special needs children who, quite frankly, are going to grow to become special needs adults. And if we don't start changing the measuring stick, then we're going to see these people as again, cost centers and burdens instead of being owners and parts of our families. [14:47:41] So thank you for the question. Thank you. [14:47:50] Hello. Guy fun except with you. Tell him to review round up in Massachusetts, speaking about make it back in Carragher. It is a national science driver program. Do the population economically and inspire the population? But we have a couple of major problems to solve first. Number one, you were talking about your fence went down to Wall Street where the derivatives and stuff. Since 2000. The big, big banks are much bigger and about to blow out. The Federal Reserve has been giving them a hundred million dollars a day since September, which means we're close to a very big global blowout again. [14:48:40] Can we have each. 2 1 7 6 in the house? Everyone should be calling their reps and demand and becomes law. And last one is we have to get back to economic sovereignty. In other words, we don't need a independant private entity controlling our economy, growing over 20 trillion dollars in debt. So we have to come back and do away with dreadful reserve and fixed currency and get back to the banking system. [14:49:12] And this was a very profound question to some people when they come to an event. [14:49:20] One of the thoughts is what Tracy originally asked is like, where do we get the money to do what we need to do? [14:49:26] How many of you here remember voting for the four trillion dollar bailout of Wall Street? How many of you remember anyone saying where we're going to get the money? That's what he's talking about, his printing of hundreds of millions of dollars a day to shore up the balance sheets of our banks. No one voted for that. No one you know, no one said, yeah, let's do that instead of bailing out homeowners. I mean, to me, you're the obvious choice was to bail out homeowners and keep people in their homes, keep communities whole. [14:49:53] But instead, we chose to recapitalize the banks. And that is an emblem of the choices we're making in this country. Everything revolves around the almighty dollar of our institutions, and we don't trust our people in the least. We have to choose our people. And to your point about what we've done in terms of recapping Wall Street and privileging them, you're right. The banks are now bigger than ever. They're absorbing more and more of the financial activity. Community banks and places like New Hampshire are a thing of the past. If you're old enough, you remember being here. [14:50:20] You remember there were community banks here that like the gobbled up by Bank of America and the giving. So this is what we have to again counteract. We have to choose our people instead of the banks. And we do have to stop bailing out Wall Street and letting them run and own our economy in this way. So thank you for the question. We'll just you one sentence, Pastor. [14:50:44] If you look at what to Mr.. [14:50:53] Thanks for coming, my name is Joe, I'm a college student from Worcester, Mass. My question today is, is that based on the dividend that you're talking about now. Of course, anywhere you want to do it. Putting taxes on companies such as Amazon, Facebook and the like. But my question is, how can you prevent these companies from outsourcing themselves and to other countries to avoid such tax removal of such tax breaks? [14:51:17] Sure. So this is based upon a system that's in effect in just about every other developed country. And it occurs on the point of sale. We're the number one market in the country. So it or the world. So even if Amazon were to shift some of its offices to other places, they're paying another the point of sales so they pay it no matter what. [14:51:33] This is what other countries have figured out. Other countries have said that having the Amazons of the world Pizarro taxes is untenable and it's worked everywhere. Also would work here, too, because you're right. Companies will do anything necessary to try and save money. But this is because it's a point of sale. It's very, very hard to escape. It's impossible to escape, actually. The comparable comparison I use is that Jeff Bezos right now is worth about one hundred nine billion dollars. [14:51:56] Post divorce. If you were to ratchet up the tax rate, let's say, to 75 percent, 80 percent. How much of this hundred nine billion dollars do you get next to nothing because you're not dumb enough to pay itself by a billion a year? No. He pays himself something modest and then most of his wealth is tied up in Amazon stock. So what you do is like Willie Sutton, the bank robber, why did he robbed the banks? Because that's where the money is. The money is flowing at Amazon. So you take it out. [14:52:21] The point of sale there, then you get billions from his business. And then when Jeff takes a billion dollars out of his stock every year to buy rocket ships to Mars, which is what he does with his money, then you take a toll there to you make it so that you get it coming and going and then it ends up in our hands to make our families communities stronger. But because it's at the point of sale, it doesn't matter where they base their operations. [14:52:44] Thank you. Thanks, man. [14:52:48] Like when it is, Kurt. I'm a campaign supporter from Massachusetts. [14:52:51] I can tell by the story. Thank you, Kurt. I'm going to head to Iowa also for. [14:52:55] Yes. Oh, you can stay here in New Hampshire. Either way, I mean, no. You know, Iowa then. Come on over. [14:53:01] So it might be time to put some minds at ease about healthcare. This is Medicare for all. It's become this sort of political football. It's a almost a branded phrase at this point. To what extent are you anchored specifically and explicitly to Medicare for all as it's written as a phrase? And to what extent would universal health care be a more useful phrase? [14:53:24] Where has that occurred? I mean, Medicare for all is universal health care for all Americans. It's on the name of a bill. It's a name for trying to get every American healthcare independent of their works, that is, or whether or not they can go forward and certain levels of premiums. [14:53:40] Now, I'm not someone who thinks you can uproot private insurance plans quickly because you're talking about millions of Americans on these plans. In some cases, they actually negotiated a way higher salaries for the plans. So somehow legislating those out of existence very quickly seems to me to be unduly impractical, as large, disruptive. [14:54:03] So the plan to me should be for the government to provide a public coverage option that then out competes the private insurers and squeezing them out over time. Now, to your point, Kurt, it is true of Medicare for all means certain things to certain people. And you're probably right that universal healthcare would be a better way to frame it. [14:54:27] I make Americans think harder. I would challenge you to think harder to look for chess moves that may reduce the size of government and make it a free country. Such as if a state legislature says no more zoning restrictions in every city and town immediately, there will be an abundance of new jobs and demolition and construction. [14:54:50] And with the glut of housing of the meeting, the modern code, that would immediately be landlords scrambling to find tenants. But half the rents that they're paying now, more people waiting at each less stop. They would be the bus companies that extend their employees and their goods. And people wouldn't have to pay for a parking lot when they don't even have a car. [14:55:12] This man strikes me as so. And it was you know, it wasn't him to wait for. [14:55:15] My name is Tom Ellis here. I used to be a state rep here briefly many years. I know you from here in New Hampshire. [14:55:20] I live in Hudson, New Hampshire now because I was going to comment that you sounded and felt so New Hampshire to me in their response like this, you know, libertarian element to this idea. And I'm sympathetic toward many aspects of it. We do have to lighten up on some of the restrictions on development. A lot of the restrictions are NIMBYism. We're just saying, like, not my backyard. Affordable housing is good in the abstract, but not here, because, you know, I don't want it to depress my. [14:55:47] My home is values and big picture in terms of the federal government. Donald Trump said he wants to drain the swamp. In many ways, he was not wrong again as the richest city in our country. And what are they producing? Unclear. So he said he wanted to drain the swamp. I want to distribute the swamp. Why would you have tens of thousands of employees and buildings in the most expensive city in the country? [14:56:15] You should be moving those agencies to Ohio or Michigan or New Hampshire or Florida or a place that would actually love to have that economic activity. The cost would be much lower because everything is cheaper in these places. And I would argue the decisions would be better because they would actually be tied to our communities and make decisions not from the bubble of D.C., but from an actual place where other people are working and living relatively normal lives. So I'm sympathetic to much of what you're describing. And I do think that zoning regs are standing in the way of a lot of the affordable housing development that you're seeking. [14:56:54] I like his sweater to wear that. No, I'm sure, though. WW WW Dodge job. [14:56:59] Yang joins me now. Mr. Yang, I was at your Hannover Town Hall event about a month ago. [14:57:06] And just a quick disclaimer, this gives you a little bit long, but I'll get this as short as possible because this is the best way that I can get my message out to people. But and I think this would encapsulate what we're kind of all thinking. So, Mr. Yang, there has not been a poll in an early state released in 47 days. Tom Perez, the chairman of the DNC, just rejected your request for the DNC to conduct and released more early state polls, essentially cutting off a vital pathway to the January debate. [14:57:36] On Perez's Twitter biography, he writes and I quote, likes the Buffalo Bills, the Democrats in fighting for the little guy, though not in that order. Well, apparently he doesn't like fighting for the little guy who is over 400000 donors, including some here right now in New Hampshire. Which would you look at? That is an early state. [14:57:55] So to the people in the room, we have a chance to raise Elizabeth Warren for the fourth quarter, and I'm going to look towards kind of the biggest camera in the room. Plus, if there is someone from the DNC watching. [14:58:12] Oh, shoot. [14:58:14] If there's someone from the DNC watching, look at the crowd. We've crammed over one hundred people into a room built for 30. There are people watching from out the door. [14:58:25] The people is my points. I cannot even vote in the 2020 general election. But I'm the most passionate of this and I have let anything happen in a long time. Hold on a minute. Hi, I'm in. [14:58:48] So, Tom Perez, fight for the little guy, play for all the little guys in this room, fight for the American people, all the people, all the people. It seems like we're not going to get much help in this process. So to the people over 18 years old, keep phone banking, keep canvasing, keep young people, keep making America think harder because we all know it's not left. It's not right. It's forward. And I'm a part of the gang gang because I'm scared of the future in America and in my age group. I'm not alone. [14:59:16] So, Mr. Gang, do you have any thoughts on the issue of. [14:59:25] Are you're making me feel better about the future? Al is just by being so passionate and I think. [14:59:34] Leadership on your part? I believe we're going to get the polls we need in the right time frame and I'll be on that debate stage in January. What is the number one criteria for Democratic voters for the nominee beating Donald Trump? That's right. [14:59:50] And a poll right here in New Hampshire said that 10 percent of Donald Trump voters would support me over Donald Trump in the general election. Another poll said that 18 percent of college Republicans would choose me over Trump, unlike any of the other candidates in the field. [15:00:05] I am drawing in disaffected Trump voters, libertarians and independents, as well as Democrats and progressives. I am the best candidate to take Donald Trump on and beat him. That's why as soon as they poll New Hampshire and Iowa, we'll see that we're well above the DNC threshold. And I will say, I'm very confident we're going to make the debate stage. We've actually offered to the DNC to pay for the polls because they were complaining of our cost and those like we'll pay for it. [15:00:33] So we'll make that debate stage in January. But more importantly, this campaign is going to keep growing and growing because we are talking about the issues that Americans care about and the problems that we see around us every day. Really, this man, you really are an inspiration to me. Like, thank you so much. And he's also a poster child for the reason why I believe we should lower the voting age to 16. Yes. [15:00:59] You heard me out there, some of you were like, that seems aggressive, but 16 year olds can pay taxes. If you had 16 year olds being able to vote, it would transform every high school in the country into a political hotbed instead of with us, you know, instead of something like, oh, we don't talk about it, no one, you can actually vote. [15:01:17] Studies have shown that the earlier your first vote is the more likely you are to vote throughout your life. And frankly, you're going to be here longer. You should have a say in what's going up. The main counterargument to this is that 16 year olds are too immature and ill informed to vote. And I think Alice does prove that to be nonsense. Am I right? [15:01:37] Everyone is waiting for you. Less than one million dollars to the three million dollar career for fundraising goals, so people keep donating. We've got to make it like the playoffs as a passionate young person here in New Hampshire.

TVU 10 ANDREW YANG NH DAY ONE EVENTS ABC UNI 123019 2020 NASHUA, N.H. - Democratic presidential candidate Andrew Yang, fresh off his successful "New Way Forward" Iowa bus tour and following his outstanding performance in the sixth Democratic debate, returns to the Granite State for what will be his 24th visit. During his visit from Dec. 30 - Jan. 2, he will hold events throughout the state, including a New Year's Eve bash in Nashua at Martha's Exchange to ring in 2020. He will also hold town hall meetings in Nashua, Salem, Exeter and Rochester. In addition, Andrew Yang will visit Concord High School, where he will champion a lower voting age and shoot hoops with students. See below for a full list of events. DECEMBER 30, 2019 Nashua Town Hall Nashua Public Library (Main Auditorium) 2 Court St. Nashua, NH 03060 2 p.m. - 3 p.m. Salem Town Hall: A New Way Forward for People with Disabilities Coffee Coffee 326 S Broadway Salem, NH 03079 4:30 p.m. - 6 p.m. Exeter Town Hall The Exeter Inn 90 Front St. Exeter, NH 03833 6:30 p.m. - 8:30 p.m. Halfway through Andrew Yang's third and last New Hampshire town hall Monday, his campaign manager Zach inserted a little drama into the night, slipping him a note mid-speech. Yang excitedly read the the message out loud, informing several hundred supporters packed at the Exeter Inn that his campaign had just reached its one millionth campaign donation. Donations have been a strength for him in this race. Polls have not. The donation milestone comes the same day the Yang campaign admitted it's having an issue with polling, and made a plea to Tom Perez to add more polls before the January debate (the DNC says it will not) But while the surprise announcement was notable, what wasn't said out loud appeared intentional and important too. After being grilled by reporters and even a town hall supporter on what appears to be a blatant misusage of the phrase "Medicare for All," Andrew Yang stopped using it at the second and third events. (FYI - no news from that second event today - it was at a Salem coffee shop, roughly 50 people packed the shop, and Andrew's policy aide led the discussion, incorporating his own personal story of being gay and paralyzed to make a case for why he supported Yang's policies) No other hard news, but a couple new hit lines from the third event: When asked why he thought he'd be the best person to go up against Trump, Yang explained that many former Trump voters are for him - over other candidates. He also added this new spicy line: "He's messed with every candidate except me. Because I'm better at the internet than he is" [8:09] He said his usual "I'm barely a politician" line and somehow added this story about his wife: [check to tape!] My wife would have run the other direction is she ever thought I was going to run for office....she jokes even now that I'd be the worst politician ever, because I'm really bad at lying. Got a terrible poker face. Even when I proposed to her. I was so nervous, I had this ring that was burning a hole in my pocket. I was like 'omigosh, she knows, she knows' [Everyone laughs] Someone yells "What happened" He continues, "What did happen. Well, I proposed and I EVENTUALLY got a yes in the same general afternoon period. I'm not sure if I've told people this story. I hope she's not embarrassed by it. I think what she exactly told me was, "WHY ARE YOU DOING THIS?" [room bursts into laughter] Not exactly what you want to hear on one knee. [7:38] LOGS BELOW FROM ORIGINAL FEEDS NASHUA TOWN HALL HIGHLIGHTS AND LOG: Two powerful moments during Andrew Yang's first town hall during his New Hampshire trip. First, a 16-year-old supporter stood in line to ask a question, but instead of asking a question, made a plea to Tom Perez to add more polling (see Armando's DL from earlier today for more on how Yang sent Perez a letter). After, Yang embraced him and said he would change things for 16 year old's to vote. Seemed like an authentic moment. 145702 Q: Mr. Yang, there has not been a poll in an early state released in 47 days. Tom Perez, the Chairman of the DNC, just rejected your request for the DNC to conduct and release more early state polls, essentially cutting off a vital pathway to the January debate. 145736 On Perez's twitter biography, he writes and I quote, "Likes the Buffalo Bills, the Democrats, and fighting for the little guy. Though, not in that order." Well, apparently, he doesn't like fighting for the little guy who has over 400,000 donors including some [inaudible] right in New Hampshire which -- would you look at that -- is an early state. So, to the people in the room, we have a chance to outraise Elizabeth Warren in the 4th quarter [audience member howls] 145803 And I'm gonna look towards kinda the biggest camera in the room but, if there is someone from the DNC watching -- oh, shoot, where am I? [laughter] -- if there's someone from the DNC watching, look at the crowd. We've crammed over 100 people into a room built for 30. There are people watching from out the door. Poll the people, is my point. I cannot even vote in the 2020 general election, but I am the most passionate about this than I have -- than anything I have been in a long time. 145837 YANG>> Give me a high five, man. [laughter / applause] [they hug] Q: So, Tom Perez, fight for the little guy. Fight for all the little guys in this room. Fight for the american people. Poll the people. [audience members shout "poll the people"] It seems like we're not gonna get much help in this process. So, to the people over 18 years old, keep phone banking, keep canvassing, keep Yanging people, keep making America think harder. 145907 Because we all know it's not left, it's not right, it's forward. And I'm apart of the Yang gang because I'm scared of the future in America. And in my age group, I am not alone. So, Mr. Yang, do you have any thoughts on the issue [laughter/applause] 145924 YANG>> My thoughts are you're making me feel better about the future, Ellis, just by being so passionate and articulate and spot-on (?). [applause] You know, that's awesome leadership on your part. I believe we're going to get the polls we need in the right time frame and I'll be on that debate stage in January. Yang also goes on here to say he thinks 16 year old's should be able to vote. Another supporter also asked Yang on calling his healthcare plan M4A,saying, "To what extent are you anchored specifically and explicitly to Medicare for All as it's written as a phrase? And what extent would universal healthcare be a more useful phrase?" (background, Yang keeps calling his plan M4A even though there's no public option!) Yang's admission here was good: 145324 YANG>> I like where your head's at, Kurt. To me, Medicare for all is universal healthcare for all Americans. It's not the name of a bill, it's a name for trying to get every American healthcare independent of their work status or whether or not they can like afford certain levels of premiums. Now, I'm not someone who thinks you can uproot private insurance plans quickly, because you're talking about millions of Americans on these plans. In some cases, they actually negotiated away higher salaries for the plans, so somehow legislating those out of existence very quickly, seems to me to be unduly impractical slash disruptive. 145402 So the plan to me should be for the government to provide a public coverage option that then outcompetes the private insurers and squeezes them out over time. Now, to your point, Kurt, it is true Medicare for All means certain things to certain people,and you're probably right that universal healthcare would be a better way to frame it. Gaggle starts here, but it's far less interesting than above. ABC asked Yang if he was contradicting himself with his plea to Tom Perez stating that he believes polls should consistently be raised, when just earlier this month, he signed a letter for Cory Booker supporting the DNC to revert to earlier qualification standards. 150636 [cutting unimportant first few lines here] I would be thrilled if they decided to go back on the announce standard but I thought that was unlikely after they announced it. We're trying to influence what they were going to announce, before the fact if you remember...so I would be thrilled if they ran polls, I would be thrilled if they reverted to earlier standards...we're just being nice by saying their standards were good. [laughs] (check tape here) He spoke a bit more about how there's nothing preventing the DNC from reaching out to any of the poll organizations, but nothing major here, until he says their actions seem disingenuous: 150741The DNC saying we can do nothing about it seems disingenuous because they can clearly reach out to any of the approved poling organizations that asked for a poll to be conducted in any given timeline. He was also pressed on M4A being the name of Sander's bill, but his website still lists M4A as a platform of the campaign. He was asked if it is confusing to use that term when his bill is not what the actual bill or policies that Warren and Sanders' are? His answer to the person who asked it during the town hall was much stronger though: 150913 YANG>> To me, Medicare for All means universal healthcare for all Americans, and that's where we should be driving as quickly as possible. We need to get healthcare access up and the costs down to a level where Americans can get the healthcare that they want and deserve. Healthcare should be a human right here in this country, instead of a means for companies to make money off of us. [was pressed further by reporter but didn't give a stronger answer] 16 Year Old 145702 Q: Mr. Yang, I was at your Hanover Town Hall event about a month ago and, just a quick disclaimer, this could be a little bit long, but I'll get this as short as possible because this is the best way I can get my message out to people, but -- and I think this would encapsulate, kind of, what we're all thinking. So, Mr. Yang, there has not been a poll in an early state released in 47 days. Tom Perez, the Chairman of the DNC, just rejected your request for the DNC to conduct and release more early state polls, essentially cutting off a vital pathway to the January debate. 145736 On Perez's twitter biography, he writes and I quote, "Likes the Buffalo Bills, the Democrats, and fighting for the little guy. Though, not in that order." Well, apparently, he doesn't like fighting for the little guy who has over 400,000 donors including some [inaudible] right in New Hampshire which -- would you look at that -- is an early state. So, to the people in the room, we have a chance to outraise Elizabeth Warren in the 4th quarter [audience member howls] 145803 And I'm gonna look towards kinda the biggest camera in the room but, if there is someone from the DNC watching -- oh, shoot, where am I? [laughter] -- if there's someone from the DNC watching, look at the crowd. We've crammed over 100 people into a room built for 30. There are people watching from out the door. Poll the people, is my point. I cannot even vote in the 2020 general election, but I am the most passionate about this than I have -- than anything I have been in a long time. 145837 YANG>> Give me a high five, man. [laughter / applause] [they hug] Q: So, Tom Perez, fight for the little guy. Fight for all the little guys in this room. Fight for the american people. Poll the people. [audience members shout "poll the people"] It seems like we're not gonna get much help in this process. So, to the people over 18 years old, keep phone banking, keep canvassing, keep Yanging people, keep making America think harder. 145907 Because we all know it's not left, it's not right, it's forward. And I'm apart of the Yang gang because I'm scared of the future in America. And in my age group, I am not alone. So, Mr. Yang, do you have any thoughts on the issue [laughter/applause] 145924 YANG>> My thoughts are you're making me feel better about the future, Ellis, just by being so passionate and articulate and spot-on (?). [applause] You know, that's awesome leadership on your part. I believe we're going to get the polls we need in the right time frame and I'll be on that debate stage in January. MEDICARE FOR ALL 145250 Q>> This phrase "Medicare for All" has become almost a branded phrase at this point. To what extent are you anchored specifically and explicitly to Medicare for All as it's written as a phrase? And what extent would universal healthcare be a more useful phrase? 145324 YANG>> I like where your head's at, Kurt. To me, Medicare for all is universal healthcare for all Americans. It's not the name of a bill, it's a name for trying to get every American healthcare independent of their work status or whether or not they can like afford certain levels of premiums. Now, I'm not someone who thinks you can uproot private insurance plans quickly, because you're talking about millions of Americans on these plans. In some cases, they actually negotiated away higher salaries for the plans, so somehow legislating those out of existence very quickly, seems to me to be unduly impractical slash disruptive. 145402 So the plan to me should be for the government to provide a public coverage option that then outcompetes the private insurers and squeezes them out over time. Now, to your point, Kurt, it is true Medicare for All means certain things to certain people,and you're probably right that universal healthcare would be a better way to frame it. ## TRINT TVU 10 ANDREW YANG NASHUA NH TOWN HALL ABC UNI 12.Sub.01.wav [14:15:34] There's one like, oh, yes. Voice amplification, it's great to be back here in New Hampshire. Tracey, you missed the most important thing. I graduated from Phillips Exeter Academy in 1992. [14:15:49] That's a pretty tepid applause. [14:15:52] But here in the U.S., it's OK. I was invited back to speak at a number of months ago. [14:15:59] And when I spoke, I said this my first time back since I graduated because I didn't enjoy myself here. And the student body erupted in applause. [14:16:10] I felt really bad. [14:16:11] That wasn't the reaction I was going for. And as Tracy said, after I graduated from Exeter, I went to Brown and then Columbia. And then I became an unhappy lawyer in New York City for five months. [14:16:23] And somehow she gets a along. [14:16:26] And I left the firm to try and start a business. How many of you? Because it's the Chamber of Commerce. How many of you've started a business or organization or club or list. So if you have your hand up, you know, two things. Number one, it's much harder than anyone lets on in. Number two, when someone asks you how it's going, what do you say? It's going great. Everything's always going great. My business went great until it failed. My parents told people I was still a lawyer because there was a much easier story, but I'd been bitten by the bug. [14:17:00] I worked at another small company and then another, and then I became the head of an education company that grew to become number one in the United States and was bought by a bigger company. Now, 2009 is like it's a decade ago. I can't believe it's already been 10 years. That was a very tough time in much of the country. How many of you were here in New Hampshire ten years ago? And how was that time for you in Nashua in 2009? [14:17:24] College. [14:17:26] You're laughing. Were you the Marilyn? [14:17:31] I just want to come in on all of the elected officials and former elected officials, because here in New Hampshire particular, it's a labor of love. You're certainly not doing it for the money or the glory. And I tell people who run for local office, I believe it's harder than running for president because people know where you live. [14:17:52] So the financial crisis 10 years ago racked many of our communities. And I saw this unfold. And I thought I had some insight as to why the economy had collapsed. It was because so many of the wannabe whiz kids, I'd go into Exeter and running Columbia with it gone to Wall Street and helped create derivatives and mortgage backed securities and these exotic financial instruments. And so I thought, well, that's a disaster and that's a train wreck and that's where our energies are going. [14:18:19] So I imagined what I would want our energies to go towards instead. And the vision I came up with was to head to a city like Detroit or Cleveland or Birmingham or Providence and help grow a company to create jobs. So I started a nonprofit called Venture for America, started calling wealthy friends, asking them this question, Do you love America? The smart among them said, What does it mean if I say, Yes? Andrew? And then I said, at least ten thousand dollars. So raised a couple hundred thousand dollars, which grew to the millions, helped create thousands of jobs in 15 cities around the country. [14:18:56] And as Tracy said, I was honored by the Obama administration multiple times. I got to bring my wife to meet the president. So my in-laws are very excited about me that week. [14:19:06] But unfortunately, during my travels, I started having this sinking feeling where for any job that my organization was helping to create. Many of these communities were losing dozens, even hundreds of jobs. I started to feel like my work was pouring water into a bathtub that had a giant hole ripped in the bottom. But I was still surprised when Donald Trump became our president in 2016. How did you all react when he won? [14:19:32] Tears, devastated disbelief. To me, it was a giant red flag that tens of millions of our fellow Americans decided to take a bet on the narcissist reality TV star as president. And even if you were devastated or cried, we all have family members or friends or neighbors who were very excited about his victory. I started to dig into why I thought he won. If you turned on cable news today, why would you think that Donald Trump's our president? [14:20:04] Facebook, Facebook, racism. Russia cared about gods and perhaps emails, but someone shouted out the economy. [14:20:15] That's closer to the truth. When I dug into the numbers, we've automated away 4 million manufacturing jobs over the past number of years. And where were those jobs? [14:20:27] Ohio, Michigan, Pennsylvania, Wisconsin, Iowa, all the swing states that Donald Trump needed to win and did win. And if you doubt this, if you go through the Motor District data, you see that there's a straight line up between the adoption of industrial automation and in a voting district and the movement towards Trump. This happened in New Hampshire, but it happened earlier. You all lost over 12000 manufacturing jobs in the northern part of the state. And when you go to those towns, you see that many of those towns have never recovered. [14:20:59] That after the factory of the plant closed in, the shopping district closed and the population shrank. When I was in Detroit and Cleveland and St. Louis, as you saw, a lot of the same things were in the midst of the greatest economic transformation in the history of our country. Because what happened to the manufacturing jobs is not stopping there. It's now heading to retail call centers, fast food, truck driving and on and on through the economy. [14:21:25] How many of you have noticed stores closing right where you live here in New Hampshire? And why are those stores closing? Amazon? That's right. One word answer. Amazon soaking up 20 billion dollars in business every single year. How much of the Amazon pay in taxes last year? Zero. That's your math. New Hampshire. Twenty billion out. Zero back. Thirty percent of your stores in malls close. Most common job in the economy is retail clerk, average retail clerks, the 39 year old woman making between nine and ten dollars an hour. So if her store closes, what is her next opportunity going to be? [14:21:57] How many of you have seen a self serve kiosk in a fast food restaurant like a McDonald's? Every location in the country in the next two years, starting at the front of the house, they're going to move to the back of the house. When you call the customer service line of a big company and you get the bot or a software, I'm sure you do the exact same thing I do, which is you pound 0 0 0 as a human human and you get someone on the line. How many of you do that? [14:22:19] Yeah, that's always terrible. [14:22:21] But in two or three short years, the software is going to sound like this. Hello, Andrew. How's it going? What can I do for you? It'll be. Seamless, delightful, you might not even realize it software. What does that going to mean for the two and a half billion Americans who work at call centers right now making fourteen dollars an hour? [14:22:41] How many of, you know, a truck driver here in New Hampshire? [14:22:44] It's the most common job in twenty nine states, though. Three and a half million truckers and my friends in California are working on trucks that can drive themselves. [14:22:51] They say they're 98 percent of the way there. A self-driving truck just took 20 tons of butter from California to Pennsylvania about two weeks ago. Totally autonomous. Why butter? I have no idea. But you can actually look IWM can robot butter truck and then it will pop up. What does this mean for the three and a half million Americans who drive a truck for a living? Or the 7 million Americans who work in truck stops, motels and diners that rely upon the truckers getting out and having a meal every day of despair? [14:23:23] These are the forces that are tearing our country apart. Many Americans feel themselves getting left behind and pushed to the sidelines. Corporate profits are at record highs today, also at record highs. United States of America, stress, financial insecurity. How many other college students? I sense many of you. Student loan debt, record highs, not normal. Even suicides and drug overdoses and unfortunately, New Hampshire is one of the epicenters of the opiate epidemic in the country. But eight Americans are dying of drugs every hour in this country right now. So these are the things that people are experiencing on the ground. And it's only going to accelerate as artificial intelligence leaves the lab and starts hitting the economy in earnest. This is not just a blue collar problem. [14:24:11] Artificial intelligence will be able to do the work of bookkeepers, accountants, radiologists, even attorneys. Right now, software can edit a contract more quickly and error free and certainly inexpensively than the most experienced human lawyer. We're in the midst of this economic transformation and for whatever reason, we're scope scapegoating immigrants within the things that immigrants have next to nothing to do with. [14:24:35] So my first move was still not to run for president because I'm not a crazy person. I went to Washington, D.C. and I sat down with our leaders and I said, what are we going to do to help our people manage this transition? What do you think the folks in D.C. said to me when I said, what are we going to do? [14:24:51] They're going to pitch Trump. We don't know nothing. [14:24:55] The three answers I got most frequently were number one. Andrew, we cannot talk about this. Someone suggested Americans wouldn't understand it anyway. Number two, we should study this further. Number three, we must educate and retrain all Americans for the jobs of the future. Which sounds very responsible. Haven't you heard a politician say something like that at some point? Now we all have. Well, then I said, look, I checked the studies. [14:25:21] Do you all want to guess how effective the government funded retraining programs were for the manufacturing workers who lost their jobs 15 percent on anchoring you lower? Because it is low. Zero to 15 percent success rates. Total dud. And when I said this to the folks in D.C., one of them said, well, I guess we'll get better at it. The truth is that the folks in D.C. will do well, whether we do well or not. The feedback mechanism is broken. It's one reason why Donald Trump is our president today. [14:25:50] And one person in DC leveled with me and said something that brought me here to you all. He said, Andrew. During the wrong town. No one here will do anything about this, because Washington, D.C. is fundamentally a town of followers, not leaders. And the only way we will do something about this is if you were to create a wave in other parts of the country and bring that wave crashing down in our heads. That was over two years ago. [14:26:13] I said I will be back with the waves. I accept that challenge. And I stand before you today. I'm fifth in the polls to be the nominee of the Democratic Party. We bring ten million dollars last quarter in increments of only 30 dollars each. So my fans are almost as she does birdies and that 10 million, zero corporate PAC money, all people powered all the grass roots. We just announced today that we're going to do better than that in this coming quarter. We are growing while other campaigns are shrinking because we are solving the actual problems. [14:26:49] I got Donald Trump elected and we have real solutions that would help move the country forward. So what are the solutions? If you're here today and I appreciate you braving the elements and saying I'm going to go see Andrew Yang, even though it's yucky, is it's pretty gross out even. You know, I mean, I grew up in New Hampshire, too. So if you were here today, at some point you heard that this guy wants to give every American a thousand dollars a month. Remember the first time you heard that? [14:27:16] The first time you heard that you were like, ha, ha, that's a gimmick. That's too good to be true. That will never happen. But this is not my idea. It's not a new idea. Thomas Paine was born at the founding of the country. He called it the citizen's dividend. Martin Luther King fought for it in the 1960s, called it the guaranteed minimum income for all Americans. And it is what he was fighting for when he was assassinated in 1968. I had the privilege of sitting with Dr. King's son in Atlanta, Martin Luther King, the third who said, this is what my father was fighting for when he was killed. A thousand economists endorsed it in the 60s. It passed the U.S. House of Representatives twice in 71 under Richard Nixon. [14:27:57] It's called the Family Assistance Plan, which has an income floor for all Americans. And then eleven years later, one state passed a dividend where now everyone in that state gets between one and two thousand dollars a year. No questions asked. And what state is that? New Hampshire. How does Alaska pay for it? And what is the oil of the 21st century technology? A software of self-driving cars and trucks. A study just came out that said that our data is now worth more than oil. How many of you saw that study? How many of you got your data check in the mail? We laugh, but where did the data checks go? Facebook, Amazon, Google, the mega tech companies that are paying zero or near-zero in taxes. That is the game. New Hampshire. Our communities are getting sucked dry and depleted. [14:28:45] We're looking around wondering where the value went. And the biggest winners in the 21st century economy are paying zero in taxes. Well, we have to do is we have to get our fair share. Your fair share. Make sure Amazon is trillion dollar tech company actually is paying taxes. And equally important, we have to put that value into our hands. Into your hands, the hands of the American people. Build a trickle up economy from our people, our families and our communities up. [14:29:12] Because if we put this thousand dollars a month into your hands, where will the money go in real life? I'm going to guess a lot of it's going to stay right here in Nashua, New Hampshire. Right. It's good for the Chamber of Commerce when a business here and be like, well, I think people might be patronizing my business a little more often, but the money would go into car repairs you been putting off and daycare expenses and little league sign ups and local nonprofits and religious organizations. It would create a sustainable path for rural parts of the state that right now are struggling to find it. [14:29:46] It would make our people stronger, healthier, mentally healthier, less stressed out for the students who are laboring under tens of thousands of dollars in student loan debt. It would help to clear that debt. I want to do more to clear that debt independent. I'm giving you a thousand bucks a month because at one point, six trillion is out of control and it's immoral the way it was generated. This thousand dollars a month would help us manage the greatest economic transformation in our country's history. I am friendly with some of the leading technologists in the country. [14:30:15] They tell me, Hey, Andrew, I've seen what's in the lab. And when it comes out, it's going to be. A bigger problem than anyone realizes. You know how that conversation never goes. Andrew, I've seen what's in the lab and everything will be fine. That's not the end of that thought. The more someone known as, the more concerned they are. The folks in DC are decades behind the curve on technology in particular. They got rid of the Office of Technology Assessment in 1995. Congress has literally had zero input on technology issues for 24 years. [14:30:50] Aside from the tech companies themselves, and you can guess what the tech companies have been telling them. So these are the changes that we have to make to rewrite the rules of the 21st century economy. To work for us. To work for you. If you are a young person, you feel like it's not working for you. You're right. It is not working for you. If you were born in the 1940s, the United States of America, there was a ninety three percent chance you're going to do better than your parents. That's the American dream. [14:31:15] That's the American dream that drew my parents here. If you were born in the 1990s, which is some of you, you're down into a 50 50 shot and the numbers declining quick. That's why young people in particular feel like we've left you an economy that doesn't work for you. A mess in addition to climate change. And we have. If you were a young person and you feel distressed or angry about it, I get it. We owe you better. We have to do better for you. We have to start measuring how our economy is doing based upon how you all are doing to see how it's working again. Corporate profits at record highs while our life expectancy is declining, which is more important. Yes, I agree. [14:32:00] And if you think about how we're measuring the value that we're producing, my wife is at home with our two young boys, one of whom is autistic. What is her work included out in our economic measures? Zero. And we know that's nonsense. We know the work she's doing is among the most challenging and important work that anyone does. It's not just her work. The things that we value most are progressively getting zeroed out in American life. It's parenting. Yes, nurturing, caregiving, volunteering, mentoring, coaching, increasingly arts, increasingly journalism. [14:32:38] And our market is going to systematically undervalue the work done by women and underrepresented minorities in particular. We all knew that. We know that women do more of the unrecognized, uncompensated work in our society every single day. So by properly measuring our progress, we can actually see the depth of the problems and then start working to improve on them. So if GDP is this bad to measurement that has less and less relationship with how we're doing and even its inventors had one hundred years ago, this is a terrible measurement of national well-being. We should never use it as that. What would a measurement that actually measure is how you and your family are doing look like? Like what would that measurement be? [14:33:24] Quality of life. Yeah, you could. You can do something about civic engagement. How about mental health and freedom from substance abuse? [14:33:35] How about health? The life expectancy? Ability to retire with dignity, clean air and clean water. We can actually make these the measurements of our society. And as your president. That's exactly what I'll do. I'll say GDP is one hundred years old. It's time for an upgrade. It's past overdue. And here's how we will measure our progress now. [14:33:58] And then we would see we're in a mental health crisis. We would see we're in a wellness recession. We would see that our environment is getting worse and worse and is not included in our current numbers. How many of you all have run a business organization or department or division? Imagine if you had the wrong measurements for that organization. How to do over? [14:34:21] That is where we are right now as a country. [14:34:23] We're getting beaten over the head with GDP headline unemployment and stock market prices and none of those things has much of a relationship with how we're actually doing GDP. I talked about a little bit. Stock market prices. The bottom 80 percent of Americans own 8 percent of stock market wealth. [14:34:38] The bottom 50 percent own essentially zero. Stock market prices correspond to the top 20 percent of society. [14:34:44] If you're generous and headline unemployment doesn't include the fact that millions are dropping out of the workforce, that people are doing two or three jobs to get by, and that 40 percent of recent college grads are doing a job that doesn't require a college degree. So we get the measurements right. We can actually make progress. Donald Trump said in 2016 he was going to make America great again. And what did Hillary Clinton say in response? [14:35:11] America's already great. Remember that? New Hampshire. It has been a long several years. [14:35:16] I know we have to acknowledge that the problems are real and that they are deep in our communities. But we need solutions that would actually help people and move us forward. What we're Donald Trump's solutions going to build a wall to turn the clock back and bring the old jobs back. New Hampshire, we have to do the opposite of these things. We have to turn the clock forward. We have to accelerate our economy and society as quickly as possible to rise the real challenges of this era. We have to evolve in the way we think about ourselves and our work and our value. And I am the ideal candidate for this job, because the opposite of Donald Trump is an Asian man who likes math very much national. [14:36:06] Make America think harder. That's right. That is your job and you're going to help us move the country. Not left, not right, but forward. Thank you very, very much. We're going to be celebrating New Year's Day. I can't wait. [14:36:23] Oh, thank you. So I had this letter and this was still on tonight. But you you hear me? I'll try to project. I'll use my own voice and everyone will write. So let's get a couple of questions. I want to start off and then we'll look to the audience, though, just as a prep for that. If you do have a question and you can use one like that's right there that Samantha is pointing to. And as you get up to ask your question, if you please state your name and if you are with an organization or business, that as well, do you ask a question? [14:36:55] So let me start. So you talk to me about jobs going away because of article and artificial intelligence and different kinds of automation and things like that. But here in New Hampshire, we're actually seeing the opposite of that. We have thousands of jobs left unfilled right now because employers can't find sufficient skilled workers to fill those jobs. How does your economic plan education or taxes for those? How do those policies help business owners right now can't be as successful as they could be because they don't have the people jobs. [14:37:33] Yeah, a lot of it does revolve around education, and many of the employers that are looking for workers are trying to find skilled technical workers, tradespeople. We have a massive national shortage of tower climbers and each fact repair people and people that actually work on the guts of our infrastructure. There are other types of needs and gaps, too. But I'm going to talk about these technical jobs because I think it's just such a massive opportunity. [14:38:00] Only 6 percent of American high school students are in technical or trade. Or apprenticeship programs right now in Germany. [14:38:07] That's fifty nine percent. [14:38:08] Think about that goal. [14:38:10] And we are lagging behind because many employers are looking around saying, I need someone with this sort of training. So we have to get that six person up as quickly as possible. And this has the added benefit of being able to say to our young people, a college is not the end all be all for everyone. Only 33 percent of Americans will graduate from college. And again, we made it more and more expensive. Well, we have to do is create paths forward for different students in different areas and lead them to the opportunities that need to be filled in many, many communities. [14:38:40] I'll also suggest that a lot of the people that are looking to hire, too, would like the headline unemployment rate. It really does obscure a lot of weakness that I see when I talk to folks here in New Hampshire, because if you're doing multiple jobs to make ends meet, you count as employed. If you're underemployed, you count as employed. And if you leave the workforce and stop looking because of a health problem where you're taking care of a relative, you don't get included in that number. So there's a lot of weakness that's being obscured in our communities because we're using a measurement that's way out of date and misleading. [14:39:15] Thank you. I wanted to follow up also on your freedom dividend plan. So last month, do it. That's pretty good to a lot of people. So I did a little bit of simple math. I will admit upfront political science, major math is not necessarily my starting point. Different math with that math. But there are a little over two hundred nine million Americans who would qualify for that at twelve thousand dollars a year, meaning over 2.5 trillion dollars a year to fund that. How does the math actually work that you can tax whatever corporations you want to test come up with that additional revenue every year? [14:39:58] All right. I'm so glad you asked. I love it so much. [14:40:04] So first you have to look at who the biggest winners are going to be if you have Amazon, Google, Facebook systematically paying zero or near-zero in taxes. Then, of course, you going to have problems affording things. But if you put a mechanism in place where we all get even the tiniest slice, our fair share of every Amazon sale, every Google search, every Facebook ad, eventually every robot truck mile and a I work unit generates eight hundred billion dollars a year with a giant up arrow attached to it. So that number is going to shoot up now. A hundred billions, not two point four trillion. As you suggest. [14:40:38] But after you put that no amount of money into our hands, the money doesn't disappear. It circulates through our community and our businesses over and over again, ends up increasing tax revenue by conservatively, let's call it, 600 billion or so. Then here's where the magic comes in. You see an additional hundreds of billions on things like incarceration, homelessness services, emergency room, health care that we spend almost a trillion on now. And it was right here in New Hampshire where our corrections officers had said this to me. He said we should pay people to stay out of jail because he sees how expensive it is when they're in jail. This is what happens in our society. [14:41:18] We don't invest in people that we end up paying in much more expensive and punitive ways when they hit our institutions, because we know our institutions are incredibly expensive. And the last piece, the best piece is that one study showed that if you were to alleviate poverty in this way, you would increase our GDP by 700 billion dollars a year just on the basis of better health and educational outcomes of our people. This is a massive investment in human capital. And this doesn't even take into account the catalyst for entrepreneurship and creativity and value creation that would ensue when having a population that can actually afford to take some risks and not feeling like if they fail, then it's going to mean the difference between having a home and the. [14:42:05] One more. I'm not going to tell you guys. You've had a chance to ask, but, you know, in essence, right now you're with the American people for a very important job. [14:42:15] The leadership position, the CEO feels that someone who was hired many and perhaps fired unless you have advice to the American people as they compare and consider all of the candidates. So what should they do as they check off your qualifications and those of others to make sure they make the right choices? [14:42:38] I love this question so much. I've never gonna do. I love it. [14:42:41] That's true. The chamber. [14:42:50] To me, the most important thing about who we choose as our president is whether they understand the real problems on the ground as we're experiencing them. And that can actually bring solutions to bear to solve them and improve our way of life. I'm going to suggest to you all that technology is the driving force behind many changes in our economy and society. And then most of the other figures in this race, whom I like it, admire a great deal. [14:43:13] And I consider many of the friends, but many of them do not understand technology very well. And they also do not understand technology's intersection with the labor force. Very well at all that if we have the wrong person in that seat, we're going to have another four years of your mall's closing of A.I., getting smarter of the robot trucks starting to multiply in the highways. And that as this continues, it's going to get harder and harder for us to actually put in place a path that lets Americans know that we are not going to be left behind, that we're actually the owners and shareholders of this country and not inputs into a giant capital efficiency machine. [14:43:58] If you don't understand the real problems, you're not going to be able solve them. I believe I have a much clearer understanding of what lies ahead for this country. [14:44:06] Shipped to all of you now. So I feel like yelling questions so we can get your feelings with the business or let us know that as well. [14:44:22] Little branching out with me to the president education co-op. I should go on to the. They're guaranteed in numerous cases and from some of the techniques that the rationale for that obviously is to do with the dislocation that will come from increase in the eye and robotics and automation. But there is an equally strong justification for it. In my view, I wonder if you have time or you just definitely suffered the almighty scientist. [14:45:03] She's come up with a scary statistic because of the exponential rise in the autism. And she's just claims that within 10 years, every other family will be dealing with a child in the optic. This will take a terrific amount of resources to apply for homeowners who typically caretakers in the home that are should and looks spoken to some limitations. But if you come in on this, is it possible other justification and rationale for. [14:45:36] Freedom Dividend, which I like to call detective. Thank you for this question. These are the best questions I received in quite some time. I have a son on the autism spectrum and what I say to families around the country is that special needs is the new normal. Certainly I have not seen a study that suggests it's going to get up to 50 percent, but it's already normal and many millions of families all around the country. And the big problem here is that you have a special needs child like my son who shows up at school and the school says, I don't have the resources available to actually do what this child needs and requires because I have one teacher for my kids and I'll have a budget for this. [14:46:17] And so that child ends up falling through the cracks. The family has to scramble their massive problems. But it's in large part because, again, we're confusing economic value and human value. We're saying that this kid needs more and thus is a burden on the community. Instead of seeing it the way we should be, which is that our kids well-being is the point of the economy, we should use that as a measuring stick, which incidentally means you pay teachers more. You hire more teachers. You lighten up on the standardized tests that we devised during World War Two as a means to identify which kids not to send to the front lines. Now we're just bludgeoning our kids with them, then distorting teacher behavior. [14:46:56] You stop treating your schools like assembly lines and start actually trying to put the resource in place to give our kids what they need. If you change it from this cost model to this investment model, then you see that this is the future of the 21st century economy making ourselves stronger, healthier and more hold. And if we don't evolve in that direction as quickly as possible, then you are correct that many communities will feel themselves to be overwhelmed by the cost of supporting many special needs children who, quite frankly, are going to grow to become special needs adults. And if we don't start changing the measuring stick, then we're going to see these people as again, cost centers and burdens instead of being owners and parts of our families. [14:47:41] So thank you for the question. Thank you. [14:47:50] Hello. Guy fun except with you. Tell him to review round up in Massachusetts, speaking about make it back in Carragher. It is a national science driver program. Do the population economically and inspire the population? But we have a couple of major problems to solve first. Number one, you were talking about your fence went down to Wall Street where the derivatives and stuff. Since 2000. The big, big banks are much bigger and about to blow out. The Federal Reserve has been giving them a hundred million dollars a day since September, which means we're close to a very big global blowout again. [14:48:40] Can we have each. 2 1 7 6 in the house? Everyone should be calling their reps and demand and becomes law. And last one is we have to get back to economic sovereignty. In other words, we don't need a independant private entity controlling our economy, growing over 20 trillion dollars in debt. So we have to come back and do away with dreadful reserve and fixed currency and get back to the banking system. [14:49:12] And this was a very profound question to some people when they come to an event. [14:49:20] One of the thoughts is what Tracy originally asked is like, where do we get the money to do what we need to do? [14:49:26] How many of you here remember voting for the four trillion dollar bailout of Wall Street? How many of you remember anyone saying where we're going to get the money? That's what he's talking about, his printing of hundreds of millions of dollars a day to shore up the balance sheets of our banks. No one voted for that. No one you know, no one said, yeah, let's do that instead of bailing out homeowners. I mean, to me, you're the obvious choice was to bail out homeowners and keep people in their homes, keep communities whole. [14:49:53] But instead, we chose to recapitalize the banks. And that is an emblem of the choices we're making in this country. Everything revolves around the almighty dollar of our institutions, and we don't trust our people in the least. We have to choose our people. And to your point about what we've done in terms of recapping Wall Street and privileging them, you're right. The banks are now bigger than ever. They're absorbing more and more of the financial activity. Community banks and places like New Hampshire are a thing of the past. If you're old enough, you remember being here. [14:50:20] You remember there were community banks here that like the gobbled up by Bank of America and the giving. So this is what we have to again counteract. We have to choose our people instead of the banks. And we do have to stop bailing out Wall Street and letting them run and own our economy in this way. So thank you for the question. We'll just you one sentence, Pastor. [14:50:44] If you look at what to Mr.. [14:50:53] Thanks for coming, my name is Joe, I'm a college student from Worcester, Mass. My question today is, is that based on the dividend that you're talking about now. Of course, anywhere you want to do it. Putting taxes on companies such as Amazon, Facebook and the like. But my question is, how can you prevent these companies from outsourcing themselves and to other countries to avoid such tax removal of such tax breaks? [14:51:17] Sure. So this is based upon a system that's in effect in just about every other developed country. And it occurs on the point of sale. We're the number one market in the country. So it or the world. So even if Amazon were to shift some of its offices to other places, they're paying another the point of sales so they pay it no matter what. [14:51:33] This is what other countries have figured out. Other countries have said that having the Amazons of the world Pizarro taxes is untenable and it's worked everywhere. Also would work here, too, because you're right. Companies will do anything necessary to try and save money. But this is because it's a point of sale. It's very, very hard to escape. It's impossible to escape, actually. The comparable comparison I use is that Jeff Bezos right now is worth about one hundred nine billion dollars. [14:51:56] Post divorce. If you were to ratchet up the tax rate, let's say, to 75 percent, 80 percent. How much of this hundred nine billion dollars do you get next to nothing because you're not dumb enough to pay itself by a billion a year? No. He pays himself something modest and then most of his wealth is tied up in Amazon stock. So what you do is like Willie Sutton, the bank robber, why did he robbed the banks? Because that's where the money is. The money is flowing at Amazon. So you take it out. [14:52:21] The point of sale there, then you get billions from his business. And then when Jeff takes a billion dollars out of his stock every year to buy rocket ships to Mars, which is what he does with his money, then you take a toll there to you make it so that you get it coming and going and then it ends up in our hands to make our families communities stronger. But because it's at the point of sale, it doesn't matter where they base their operations. [14:52:44] Thank you. Thanks, man. [14:52:48] Like when it is, Kurt. I'm a campaign supporter from Massachusetts. [14:52:51] I can tell by the story. Thank you, Kurt. I'm going to head to Iowa also for. [14:52:55] Yes. Oh, you can stay here in New Hampshire. Either way, I mean, no. You know, Iowa then. Come on over. [14:53:01] So it might be time to put some minds at ease about healthcare. This is Medicare for all. It's become this sort of political football. It's a almost a branded phrase at this point. To what extent are you anchored specifically and explicitly to Medicare for all as it's written as a phrase? And to what extent would universal health care be a more useful phrase? [14:53:24] Where has that occurred? I mean, Medicare for all is universal health care for all Americans. It's on the name of a bill. It's a name for trying to get every American healthcare independent of their works, that is, or whether or not they can go forward and certain levels of premiums. [14:53:40] Now, I'm not someone who thinks you can uproot private insurance plans quickly because you're talking about millions of Americans on these plans. In some cases, they actually negotiated a way higher salaries for the plans. So somehow legislating those out of existence very quickly seems to me to be unduly impractical, as large, disruptive. [14:54:03] So the plan to me should be for the government to provide a public coverage option that then out competes the private insurers and squeezing them out over time. Now, to your point, Kurt, it is true of Medicare for all means certain things to certain people. And you're probably right that universal healthcare would be a better way to frame it. [14:54:27] I make Americans think harder. I would challenge you to think harder to look for chess moves that may reduce the size of government and make it a free country. Such as if a state legislature says no more zoning restrictions in every city and town immediately, there will be an abundance of new jobs and demolition and construction. [14:54:50] And with the glut of housing of the meeting, the modern code, that would immediately be landlords scrambling to find tenants. But half the rents that they're paying now, more people waiting at each less stop. They would be the bus companies that extend their employees and their goods. And people wouldn't have to pay for a parking lot when they don't even have a car. [14:55:12] This man strikes me as so. And it was you know, it wasn't him to wait for. [14:55:15] My name is Tom Ellis here. I used to be a state rep here briefly many years. I know you from here in New Hampshire. [14:55:20] I live in Hudson, New Hampshire now because I was going to comment that you sounded and felt so New Hampshire to me in their response like this, you know, libertarian element to this idea. And I'm sympathetic toward many aspects of it. We do have to lighten up on some of the restrictions on development. A lot of the restrictions are NIMBYism. We're just saying, like, not my backyard. Affordable housing is good in the abstract, but not here, because, you know, I don't want it to depress my. [14:55:47] My home is values and big picture in terms of the federal government. Donald Trump said he wants to drain the swamp. In many ways, he was not wrong again as the richest city in our country. And what are they producing? Unclear. So he said he wanted to drain the swamp. I want to distribute the swamp. Why would you have tens of thousands of employees and buildings in the most expensive city in the country? [14:56:15] You should be moving those agencies to Ohio or Michigan or New Hampshire or Florida or a place that would actually love to have that economic activity. The cost would be much lower because everything is cheaper in these places. And I would argue the decisions would be better because they would actually be tied to our communities and make decisions not from the bubble of D.C., but from an actual place where other people are working and living relatively normal lives. So I'm sympathetic to much of what you're describing. And I do think that zoning regs are standing in the way of a lot of the affordable housing development that you're seeking. [14:56:54] I like his sweater to wear that. No, I'm sure, though. WW WW Dodge job. [14:56:59] Yang joins me now. Mr. Yang, I was at your Hannover Town Hall event about a month ago. [14:57:06] And just a quick disclaimer, this gives you a little bit long, but I'll get this as short as possible because this is the best way that I can get my message out to people. But and I think this would encapsulate what we're kind of all thinking. So, Mr. Yang, there has not been a poll in an early state released in 47 days. Tom Perez, the chairman of the DNC, just rejected your request for the DNC to conduct and released more early state polls, essentially cutting off a vital pathway to the January debate. [14:57:36] On Perez's Twitter biography, he writes and I quote, likes the Buffalo Bills, the Democrats in fighting for the little guy, though not in that order. Well, apparently he doesn't like fighting for the little guy who is over 400000 donors, including some here right now in New Hampshire. Which would you look at? That is an early state. [14:57:55] So to the people in the room, we have a chance to raise Elizabeth Warren for the fourth quarter, and I'm going to look towards kind of the biggest camera in the room. Plus, if there is someone from the DNC watching. [14:58:12] Oh, shoot. [14:58:14] If there's someone from the DNC watching, look at the crowd. We've crammed over one hundred people into a room built for 30. There are people watching from out the door. [14:58:25] The people is my points. I cannot even vote in the 2020 general election. But I'm the most passionate of this and I have let anything happen in a long time. Hold on a minute. Hi, I'm in. [14:58:48] So, Tom Perez, fight for the little guy, play for all the little guys in this room, fight for the American people, all the people, all the people. It seems like we're not going to get much help in this process. So to the people over 18 years old, keep phone banking, keep canvasing, keep young people, keep making America think harder because we all know it's not left. It's not right. It's forward. And I'm a part of the gang gang because I'm scared of the future in America and in my age group. I'm not alone. [14:59:16] So, Mr. Gang, do you have any thoughts on the issue of. [14:59:25] Are you're making me feel better about the future? Al is just by being so passionate and I think. [14:59:34] Leadership on your part? I believe we're going to get the polls we need in the right time frame and I'll be on that debate stage in January. What is the number one criteria for Democratic voters for the nominee beating Donald Trump? That's right. [14:59:50] And a poll right here in New Hampshire said that 10 percent of Donald Trump voters would support me over Donald Trump in the general election. Another poll said that 18 percent of college Republicans would choose me over Trump, unlike any of the other candidates in the field. [15:00:05] I am drawing in disaffected Trump voters, libertarians and independents, as well as Democrats and progressives. I am the best candidate to take Donald Trump on and beat him. That's why as soon as they poll New Hampshire and Iowa, we'll see that we're well above the DNC threshold. And I will say, I'm very confident we're going to make the debate stage. We've actually offered to the DNC to pay for the polls because they were complaining of our cost and those like we'll pay for it. [15:00:33] So we'll make that debate stage in January. But more importantly, this campaign is going to keep growing and growing because we are talking about the issues that Americans care about and the problems that we see around us every day. Really, this man, you really are an inspiration to me. Like, thank you so much. And he's also a poster child for the reason why I believe we should lower the voting age to 16. Yes. [15:00:59] You heard me out there, some of you were like, that seems aggressive, but 16 year olds can pay taxes. If you had 16 year olds being able to vote, it would transform every high school in the country into a political hotbed instead of with us, you know, instead of something like, oh, we don't talk about it, no one, you can actually vote. [15:01:17] Studies have shown that the earlier your first vote is the more likely you are to vote throughout your life. And frankly, you're going to be here longer. You should have a say in what's going up. The main counterargument to this is that 16 year olds are too immature and ill informed to vote. And I think Alice does prove that to be nonsense. Am I right? [15:01:37] Everyone is waiting for you. Less than one million dollars to the three million dollar career for fundraising goals, so people keep donating. We've got to make it like the playoffs as a passionate young person here in New Hampshire. SALEM TOWN HALL - LU3 ORIGINALLY [16:44:34] We thank you all for being here. And what an inspirational story. Let's give a person another round of applause. [16:44:46] It's so beautiful. [16:44:47] So proud to have you as part of the campaign. I've been running for president now for two years plus. But my story actually started right here in New Hampshire. I don't know how many of you know, I went to high school here in the state. Raise your hand. You knew that you set your head like. No. I graduated from Phillips Exeter Academy in 1992. [16:45:07] Then I went to college in Rhode Island. Nearby was an unhappy lawyer for five whole months, left to start an ill fated company that crashed and burned. But I do it bitten by the bug. I worked in small businesses and growth companies for another 10 years and I'd say shout out to Lane and coffee coffee for hosting us here in. [16:45:31] As I love small businesses so much, oil is the lifeblood of any community. When I went back and I spoke at Exeter, I actually unpacked some of what brought me to run for president today. So if you know anything about Phillips Exeter Academy, it's a very, very competitive school, like a bit of a pressure cooker, you would call it. And out of Exeter, you are very likely to head to a place like Wall Street and work at an investment bank and create financial instruments that ended up crashing the economy in 2009, about 10 years ago. [16:46:06] That was the recipe for success for literally some of my friends from PTA. And so in 2009, when the financial crisis was in full bloom, I thought, what a train wreck. If we have our talent heading to a place like Wall Street to cook up mortgage backed securities that ended up crashing our economy. So I thought, well, what would I rather our energies be devoted to? And the vision I had was to head to places like Detroit, Cleveland, Birmingham, New Orleans, Pittsburgh and start businesses and create jobs. [16:46:38] So I spent seven years running a nonprofit that I started. How do you all work in nonprofits? How do you volunteer in nonprofits? Just raise your hand just for the heck of it on that one, just to make yourself look good for your neighbors. [16:46:51] Of course I volunteer. [16:46:54] So you start a nonprofit. The way I started this nonprofit was I put up some seed money and I started calling rich people with the question, Do you love America? [16:47:03] And then the smart among them said, What does it mean if I say yes? And then I said 10000 dollars. And then one of them said, I love America for that much. It's like I thought you did. So we raised a couple hundred thousand and then it grew to the millions, helped create several thousand jobs around the country in 15 cities. So I spent seven years doing was honored by the Obama administration. But unfortunately, what I saw when I traveled the country was that things were getting worse, not better in many, many places. [16:47:30] And for any job that I was helping to create, we were losing dozens or even hundreds of jobs because of plants closing and now stores and malls closing. How many of you noticed stores and malls closing around where you live in this part of New Hampshire? And why are those stores closing? Amazon, right. Amazon soaking up 20 billion dollars in business every year, closing 30 percent of America's stores in malls. How much should Amazon pay in federal taxes last year? [16:47:55] Zero. That's your math. New Hampshire, 20 billion out 0 back 3 percent of stores and malls close most common job. The economy is retail clerk. Which retail clerks? A 39 year old woman. So I started seeing the pace and rate of the economic changes. And what it led me to was that this rugged individualism, this meritocracy that is package to us is not actually real. At this point that it's rugged individualism for individuals. But if you are a Wall Street bank and you are on the brink of collapse, what happens? [16:48:27] The government comes to rescue you with four trillion dollars and drops it in your lap. But if you're a homeowner and your home's under water or the tide is going out or your factory closes or main street closes, that's on you, that's your fault or problem. And right now, this American dream that my family came here to find and have benefited from is dying by the numbers. I'm a numbers guy. If you were born in the 1940s, the United States, there's a 93 percent chance that you're gonna be better off than your parents if you were born in the 1990s or down to a 50 50 shot in declining fast. [16:49:04] These are the things I got Donald Trump elected and this thought that if you're smart and hardworking, you make it. And if you aren't making it, that it's somehow on you. That's a farce. It's not true anymore in American life. And what led me to run for president on top of the fact that we're going through this fundamental economic transformation was the personal growth and lessons I encountered when my older son was discovered to be autistic when he was 3. So we were a first time parents and Christopher had struggles. But as a first time parent, you don't know if that's the norm. Maybe two year olds act like this, maybe three year olds act like this. [16:49:51] And when we got the diagnosis, it was actually a relief for me and my wife because we're like, OK, this is something that we now understand and we can bring resources to bear. But most families are not in position to be able to bring resources to bear when they have special needs children. [16:50:12] How many of you know someone with special needs or autism or neuro logically topicality? Yeah, it's all a look around the room. There's literally every single person. It could be that that was one of the themes of the event and that would be what brought you here. But I would suggest that in any group of Americans, most hands would go up. That this is the new normal. So what Carstens experienced and what we're describing. [16:50:38] This is my mission with the campaign and it's what New Hampshire has to transform about our country as quickly as possible. And it is this that economic value and human value are different, that right now we've collectively been brainwashed to think that our value is determined by what the market says we are worth. And if the market says we are worth nothing, then we are worth nothing. That is how you wind up with these conclusions, like when a coal mine closes. [16:51:05] We should turn the coal miners into coders, even though that makes zero sense. The only way I would make sense is one, if those people literally have no value if the market doesn't attribute them value. So we have to turn them into something that does have value. That logic is going to ruin us. It's ruining us already and it's ruining families who are struggling with special needs children and their communities don't have the resources to support them. It's ruining us because more and more Americans look up and do not see a clear path for themselves and their family. [16:51:41] And because we don't understand it, it's turning us against each other. There is this mindset of scarcity that is now dominating most of our society, because in this country, 78 percent of us are struggling paycheck to paycheck. Almost half of us can't afford an unexpected five hundred dollar dollar bill. And in that environment, it's very easy to have your heads down and blame each other for things not going well. [16:52:05] I have been to the mountaintop and I have seen the unimaginable wealth that exists in this country. It is staggering. It is unbelievable. I have been to some of the poorest parts of this country. And if anyone tells you that we do not have the resources to improve our own lives, just tell them. Do you remember voting for the four trillion dollar bailout of Wall Street? And they will look at it being like, I do not remember voting for that. [16:52:30] And then do you remember anyone complaining about where we're going gonna get the money? Remember that? They named it quantitative easing. So they hoped that we wouldn't notice. But you all are smart enough to know what is going on in the rest of the country. The big challenge now is to rewrite the rules of our economy and society, to work for my son, to work for your children, to work for Carson. [16:52:53] And this is independent of what the market thinks about us. You know what I mean? Because this is the age of artificial intelligence. And A.I. is going to come out and make trucks that drive themselves in the robot truck. Doesn't care if you are the hardworking, conscientious trucker or the less hardworking truck driver. The robot truck can drive 24/7. The A.I. can read the radiology film better than the most experienced doctor because it can see shades of gray that the human eye cannot and it can reference millions of data points. [16:53:29] Whereas the smartest doctor can only reference hundreds or thousands. It has nothing to do with that doctors work ethic or character. So we have to say to the rest of the country that we have intrinsic value as people that regardless of what the market is doing, as the market is sucking up more and more value, as Amazon's depleting our communities, as Facebook literally is selling and reselling our data for billions of dollars and we're not seeing a dime. It is up to you really here in New Hampshire to reclaim. [16:54:03] Our government and rewrite the rules to work for us. There is no one else to do it. That's why I love campaigning here in New Hampshire so much. I did the math. You know how many Californians each of you is worth? [16:54:18] Approximately 1000 Californians each. So look around this room. How many people do we have? What's that? What's the fire code here? [16:54:27] It's going to be that minus one. [16:54:31] So let's say there are a hundred people here today in this group. That's like two and a half football stadiums full of Californians. That is the power in this room to change the future of this country, to let our fellow Americans know that we are worth everything. It's not that we work for the economy. The economy needs to work for us. It's not that we're inputs into the giant machine. The machine has to be made to work for us. Now, part of this is it's universal. It's not about. Party for sure. [16:55:08] That's one reason why I say it's not left, it's right, it's forward. But the difference between someone who is able bodied and not in the 21st century will diminish quite rapidly. No, like if you look at someone and you say, hey, like you're on your own. It's not going to work. We have to bring people together and see that these are the issues that we're all facing. So I'm thrilled to be releasing today a policy that supports families who are dealing with the same issues that my wife and I have as parents because right now. [16:55:46] The federal government said that they would fund 40 percent of their resources necessary to educate kids with special needs around the country. D.C. being D.C., they actually funded about 15 percent. I'm saying it should be 100 percent and that's what I will make happen as your president. [16:56:05] As. [16:56:10] Of my fundamental message to you all is that if the rules of the 21st century economy are not working for you and your family, then they're not working, period. And it is in your power and your power alone to change that. So I hope you'll join with me and Carson and the rest of the team to do just that. And I'm looking forward to taking questions from you all. Thank you all so much. [16:56:39] Perfect. Thank you so much. We are going to now open up the floor for questions, and I think we're going to start with the questions around disability first a little bit and then from there we can kind of open up as we go on. So questions about policy or disability or anything in that realm. Oh, yes. We have a micro hearing, me and Andrew going to show to make sure all parts of. Killing this gentleman. [16:57:11] Hello, my name is Alex Bennett, and my question around disability is Andrew. I know that you take a lot of policy positions or information from what Germany does. And I know that's true from mechanical education. But my mom, she married a German guy. And so my three little sisters are German and one of them has a mental disability. [16:57:31] And the way that they integrate her into the classroom is far more advanced than what they do in the United States. And I was wondering what kind of different places they to take your policy positions and what you want to implement for people with mental disability, for them to be more of a productive part of the community. [16:57:50] Thank you, Alex. [16:57:54] One of the German role modeling examples that Alex is referring to, because you see me in another context, is that only 6 percent of American high school students are in technical or vocational programs. And in Germany, that's 59 percent. Think about that golf. So we need to bridge that golf here in the United States because we're overly emphasizing college, college, college. And the reality is only about a third of Americans graduate from college. [16:58:19] A lot of people are attending college that it's not a good fit for. And many should be heading to these vocational and apprenticeship programs. If we actually. Stopped in a lab and equipment and a local employer and the training necessary to put them on a more sustainable path. As you know, I'm concerned with the fact that we're automating away a lot of the lot of the most common jobs in our country, which we are 40 percent in the next 10 to 20 years. Trucking being one of the most common. [16:58:57] But it's very, very hard to automate away a tower climber or an h vac repair person or a plumber. Can you imagine what it would take to make a robot plumber? It's a joke. It's like impossible. It's gonna be a human being for a long time. So we need to invest significantly in in trade and apprenticeship programs the way Germany has. And the fact that Germany is ahead of us in integrating people with different no logical profiles in the classroom is not surprising to me. [16:59:22] One of the things we do too often in America is we silo kids off. We say, hey, you go there and then these kids go here. And that's actually not the way human beings learn and develop naturally. If you think about the course of human history, kids learn from other kids very often. And so you need people with different profiles were in a classroom. The other thing I would do in the classroom, we have to lighten up on standardized tests in this country as this would help people different profiles to you know, we invented the S.A.T. during World War Two as a means to identify which kids not to send to the frontlines. [17:00:01] Think about how dark that is. And then we took that test and now we're bludgeoning our kids with it every single year. It's distorting teacher behavior. It's it's making it so that our kids feel like they're. Not worth as much as they are. And so that's another move we can make that would ease the integration of people with different profiles of the classroom. Well, while we're waiting on a question, I just want to comment about one of the main themes of the campaign, and this will help change a lot of things right now. [17:00:38] The government and the media, don't forget the media are presenting a few measurements to us as to how we are doing. All right. Number one is GDP. Number two in stock market prices. And number three is headline unemployment. And so they run around saying things are great, things are great, things are great. And then we're looking at being like, why do I not feel like things are great? So you have record high corporate profits and GDP in this country right now. Also at record highs. [17:01:04] Stress. Anxiety. Student loan debt. Financial insecurity. Drug overdoses and suicides. And New Hampshire, unfortunately, is one of the epicenters of the opiate epidemic. But nationwide, eight Americans are dying every hour from drugs. It is so bad that our life expectancy has declined for three years in a row. First time in 100 years that's happened. Last time it happened was the Spanish flu of 1918, a global pandemic that killed millions. [17:01:30] It is not normal in a developed country for our life expectancy to be climbing. So when the media and the government run around saying things are great, things are great and you feel like things are not great. You are right and they are wrong by the numbers that if you had the real numbers, you would see where the midst of a mental health crisis, you would see where our life expectancy is declining civic engagement. A lot of the things that you would use as indicators of health of a society or community are all in the red. And this extends to what we need to do for people of different capacities who are disabled or on different parts of the spectrum. [17:02:08] So if you shift our measurements from saying GDP, corporate profits to our health, our mental health, clean air and clean water, then all of a sudden anything that makes our kids and our people stronger is an investment. That means paying teachers more. That means having more teachers in the classroom. That means actually putting resources in place to make ourselves stronger. Instead of seeing these things as costs like, it's very hard to argue when you go to the school district and say, hey, my kid needs help. And they're like, we don't have the money because they're in an environment of scarcity. [17:02:47] And they're like, I've got a budget and I can only move so many things around. But if you actually change the measuring stick of the economy to how that kid is doing. We all know if you were the parent of a special needs child, you know, if you invest enough in that child's development early on, it can be a game changer for the rest of their life. What is the economic and human return of changing that kid's life for 70 years? And so then you go to the school district and say, I need this. They say, yes, you do, because we need to put that investment in place. And that's actually how we measure success. That's what we need to change. [17:03:26] As you know, G.G., just enough from me, I'm sure I was a teacher in the classroom for 17 years. Fifth grade for 15 years. Yeah. And upon thinking about what you just said, how do you get that done? You know, I came from a place where one teacher. Twenty five. Twenty seven kids, many special needs kids, no help. And I have young relatives now who have special needs. And one of them isn't going to school being. He's autistic, being homeschooled because of behavior. Parents don't have any faith in the systems. How do you get that done? [17:04:11] That is what we have to address. And I've been that parent. Christopher has behavioral and social problems and would not thrive in many, many environments. In our case, we have him in a special needs school and he gets a lot of individualized attention right now. If you go to that public school, they don't have any individual to actually be able to help manage that child. So that's the change. And that's where the federal government comes in. So the federal government has magical powers that towns do not. [17:04:46] No, I mean like that. That's where the 4 trillion came from. That's where the one point five trillion that went to corporations came from just the other year. If you were a school district and you say, look, I can't afford an individual teacher to help manage your child. That is what this bill that would put 50 billion dollars right towards schools to be able to pay for that special needs teacher in that classroom. So you can't put communities in position where they feel like they have to rob Peter to pay Paul. [17:05:16] No, you have to say, look, this is a society wide problem and here are the resources to deal with it, particularly because what you are seeing in your family is, again, the new normal. Every indicator is that the number of autistic and special needs children is rising and rising and rising. So we need to invest right now and we have to do this at the national level so that your is that your relatives? So that your relatives actually feel like they can send their son to school and be able to trust the system. Because I understand why they don't right now. Let's give her a round of applause for teaching fifth graders at the. [17:05:54] I have to say, I as a parent, too. [17:05:56] I'm so grateful when there is an awesome teacher because you can tell the teacher is investing in your kids every single day. You drop your child off and you're like, oh, you know, you know it. You know, when when they're in the presence of a good teacher, you remind me of my fifth grade teacher, actually. [17:06:13] What it's worth, I mean, I just I'm like, oh, great. That seems like a great teacher. [17:06:19] I'm sorry. [17:06:24] They don't. I'm Andrew Chavez. I'm actually from Massachusetts down in Andover. I'm just curious, with mental health, mental health and mental illness being so prominent in today's society. How do you plan on helping people who are either uninsured or don't have the means to go to a psychiatrist, psychologist, therapist or or even just too embarrassed to go to a counselor at school? [17:06:46] Thanks, Andrew. It's a great question. [17:06:49] The first thing we have to do is destigmatize mental illness and struggles. And so I think I'm 100 percent sure that my family is not the first political family to have autism and the family special needs child. I think we may be one of the first families to talk openly about it, which to me is messed up. You know, it's like I think politicians historically been like, oh, let's like, you know, have this facade that we're presenting to the world. [17:07:14] Whereas for us, we love our son. You know, he's our son. Like, we think that society loves him, too. And with mental illness, we have to let people know it's like everyone's struggles. It's almost universal to the human condition. And if you need help, we should be there to to get you that help. I'm for universal health care so that people will be able to see the professionals they need when they need them. I want to integrate our mental health system and our hospitals because a lot of the time the physical ailments we go into hospitals with have a mental health component. You're talking about addiction, obesity, like a lot of it like diabetes. [17:07:57] There are a lot of things that are tied together with a body in the mind. And when communities have integrated their medical system in their mental health system, they've seen incredible results. So we need to try and do that society wide. But it starts with covering all Americans so that we can get access to the health care we need and making sure there's no stigma attached to it. [17:08:26] This also means training more professionals because many communities are mental health deserts in terms of having practitioners and counselors. So I want you all to reflect on some news doctors as an example. Why do we not have enough doctors in United States of America? Is it because not enough young people wanted to be doctors? [17:08:43] No, it's because. [17:08:49] We've constrained the supply of doctors because the doctors want to make more money. Honestly, if you think about it, we had a physician shortage for decades. Why wouldn't you expand supply? It's because the AMA was like we kind of like the number where it is. And we've made training as a doctor so expensive that after you get your degree, you don't want to head towards particular parts of the country doing particular types of work because you'll never repay the debt. [17:09:16] And we've made it so that if you want to go into this entire process, what do you have to do? Be great at these standardized tests. We've set up as this gate to have you go through and then load you up with that. So what you have to do over time is you have to broad in the nature of the training, make it lighter cost or if it is still super expensive. You pay back the debt. If someone goes to an underserved area, because right now in this country, everything revolves around the almighty dollar and it's depleting many, many towns and communities around the country. [17:09:49] And the subtext is that, well, that's the town's fault. Or maybe those people should all moved to Seattle or some other nonsense, you know, like we have to make it work for people where they are. And so if people aren't getting the care that they need because the market's not delivering it, then we have to create the incentives so that someone can get the training needed to help that community and then actually go to that community. [17:10:21] Hi, Larry. Somehow. Thanks for being here along the lines of insurance. We were at the FDA FDR Library this weekend toward the library in New York, and they had an exhibit about Social Security. And one of the things they said was, you know, we put in place Social Security to let the old people retire so their jobs would free up for the next generation. And why aren't we talking about that with insurance? [17:10:56] Because I'm at a point where every two years my company does an early buyout and I've reached that age where, you know, I could consider taking it, but I can't because I'm still paying. You know, I'd be paying two thousand dollars a month for health insurance. That's keeping me in place and not freeing my job up for the next generation. And I think that's a really good argument that I don't hear anyone talking about. [17:11:24] I love this argument. [17:11:27] I love this argument because as someone who's run a business, I know that our current health insurance system is terrible for the labor market. It's terrible on so many levels. [17:11:37] It makes it harder to hire someone. It makes it harder for all of us to change jobs because you're afraid of losing your health insurance. It makes it a thousand times harder to start a business because what do you do about health insurance then? And it makes it so that if you do hire people, what do you do? You turn them all into temps and contractors and gig workers because you don't want to pay for the health care. If we were to get health care off the backs of businesses and families, it would be the greatest catalyst to dynamism and entrepreneurship and creativity and. [17:12:14] People taking risks in a way that right now they don't feel they can because they have families, they have health insurance and the rest of it. So I could not agree with you more that we're in the worst of all worlds right now. And this is an accident like. There was no grand design to tie insurance to your employment, but now we're here. And at this point, half of Americans are getting insurance from their jobs. So the plan has to be for us to provide universal coverage and then over time, squeeze out the private insurance plans and let people know that the public plan works as well or better. [17:12:53] I'm not someone who thinks we can legislate away private insurance because many people literally negotiated away wages for that insurance and many Americans enjoy their coverage. But we have to outcompete and demonstrate that we can do a better job. And if the government actually negotiates properly, it should be able to do a better job because of the clout and the bargaining power that it would be able to bring to the market. Well, I love this argument so much. I made actually a similar argument in one of the first debates where I talked about how our current health insurance model is keeping us in place. [17:13:29] And if we let it if we let it get covered by the state in a different way, then we'd be much freer to do the kind of work we want to do. It sounds like you consider taking this buyout. So that sounds like it would be a win on a couple levels because then someone could take your job, which I'm sure is a job they want. And you could do something else like run for president 20 24. [17:13:52] What's your name? Let's put it should happen to me. [17:14:01] Hello. [17:14:03] Hi. I'm Maryland. I live in Salem. I am a teacher as president. How are you going to bring Congress along with your wonderful progressive policies, at least to moderate Republicans? We know some you'll never reach. But how could you make them look like you were asking these questions to? [17:14:23] My flagship proposal is putting a thousand bucks a month in everyone's hands. How many of you knew about that? Was that right? [17:14:28] Oh, yeah, that's right. Andrew Yang is the give everyone money guy. [17:14:35] Now, after I become your president, thanks to you all. Thank you, Hampshire. Twenty, twenty. The Democrats will be so pumped to beat Donald Trump that like, yeah, we did it. We've got the White House, we've got some in Congress. And let's get something done that's going to put more money in the hands of children and families, make a stronger, healthier, mentally healthier. But here's the kicker. What are Republicans going to say about the dividend? There's one state that's had a dividend for almost 40 years now, and that state is Alaska. It's a deep red conservative state. It was passed by a Republican governor and he said this. He said to the Alaskan people, a lot of oil money. [17:15:10] Who'd rather get it? The government. Who is going to screw it up somehow or you, the Alaskan people and the Alaskan said us, please. And he said, I thought so. And now Alaska has been lobbying this dividend for almost 40 years. Alaskans are a little bit like New Hampshire residents where they really detest taxes. But even Alaskans said they would accept higher levels of taxes if it meant keeping or growing the dividend because it's the beat, their favorite thing that the government ever does. [17:15:36] And like the dividend they all agree on. And I don't need every Republican to get on board with the dividend, I just need a critical mass. And if you think about the impact of the dividend, who does it help it? It helps people in rural areas. It helps red states on the interior that have lost a lot of their economic drivers. So can you imagine the office of a Congress person who's like, I don't like this dividend. The money's gonna hurt you. [17:16:01] People in his district would be like, are you out of your mind? Yang wants to give everyone the dividend. I kind of like it. [17:16:11] And there was a poll that ran here in New Hampshire that said that 10 percent of Trump voters would pick me over Trump in the general election. Another survey said that 18 percent of college Republicans would choose me over Trump in the general. So I have built an appeal to that side of the aisle because I'm nonpartisan and I'm not ideological. I'm just solutions oriented. My flagship proposal is something that Milton Friedman and Martin Luther King and Thomas Paine were all for. It kind of defies party boundaries. [17:16:42] And I have friends who are moderate Republicans and libertarians and independents, and they feel like we can see eye to eye to get things done. I believe I'm actually uniquely situated among the candidates for president to get into Washington and get things done for this reason. And I will have people in my administration who are from different. Political backgrounds, because to me, it's just about people who want to help improve our way of life. And I believe you can find people like that on both sides of the aisle. [17:17:19] OK, we have time. Just a couple more questions before you wrap up. I believe I have someone right here. [17:17:26] Hi, my name is Louise. I live in Massachusetts, but I work in Salem, New Hampshire, and I asked my boss if I could leave early so I could come here and he said that he wouldn't come here because he wants to ask you a question. So he saw your ad today and he says, how could a regular blue collar average person pay more in taxes than a billion dollar corporation like you mentioned, Amazon? How does that happen? [17:17:50] That's the question. [17:17:51] How does a trillion dollar tech company like I was on pay zero taxes? How is that possible? It's not just Amazon. Other. There was another. There are other very, very big companies like Netflix. No taxes. Yeah, Starbucks, too. It's true. It's funny. I mean, we all probably feel more positively towards Starbucks. [17:18:14] So so the coffee coffee pays taxes. When I ran. [17:18:20] That's one reason we should patronize them. Oh, what's this? [17:18:24] The presidential blood for Andrew Yang. [17:18:33] Do they have a set of adjectives associated with it? It'll be like. Like smart, forward thinking. So the way Amazon doesn't pay any taxes is they play a few games. Number one, the most common game, if you are a large multinational firm, is you park the revenue overseas. You say it all went through Ireland because is this crazy tax haven and you never bring it back to the U.S.. So right now, the biggest tech companies have tens of billions of dollars in overseas earnings parked in banks in Ireland and other parts of the world. [17:19:11] And as soon as it touches down here in American soil, it gets taxed. So it never touches back here on American soil. So that's big game number one. Big game. Number two is a company like Amazon can be valued at a trillion dollars and not even make profits in a given quarter. And this is ironic, but a Wal-Mart executive complained to me. How can you compete against a company that does not need to make money? [17:19:35] And I laughed at him. I was like Wal Mart, you guys put so many people out of business. Oh, but but he had a fair point because Amazon has that valuation, despite in some quarters turning 0 profit. So what they do is they spend money very, very aggressively. They gobble up other businesses. They compensate their executives with these big stock option pools that they can then expense in various ways. [17:20:04] And anytime they think they might pay taxes, they spend money in a way to try to keep the taxes close to zero. But the main game they'll play is they'll park it overseas. There are a few different things that they do to avoid paying meaningful taxes. And as someone who ran a private business myself for years. What I mean, there's a personal question sorta. But Lynn, what are you paying here? Coffee. Coffee. [17:20:29] But like order of magnitude. [17:20:33] Well, because when I ran a private company, I was paying 40 to 50 percent in taxes. All in and I would look at my account and be like, what are you doing something wrong? Am I doing something wrong? Like, why am I getting it stuck to me this badly? And he's like, no, that is the tax rate. That is what if you were a private business, you pay. And then when you see that Amazon is paying zero taxes, you're like, what is going on where our tax code is geared towards these behemoth corporations that right now are. [17:21:05] Depleting our communities. And if you're a private business like coffee, coffee, you're paying 30, 40. I'm not. I don't. New Hampshire might not be as high as this business. I it was in New York State, which is a high tax place. So you don't get up to 50 percent. But so I'll stop it at 40. Like a small business here, I might be paying 20 to 40 percent in taxes. You can tell your boss that. Yes. Thank you for asking. So what I did is I look around the world and I look for what has worked in other places. [17:21:41] So if you were another developed country, you look up and say, hey, Amazon can't be paying zero taxes. What we're going to do is they're going to set up essentially a tiny toll booth at every point of sale. So imagine this country, which is going to be the United States of America. After I'm president. Where we the people of this country, you get a tiny smidgen of every Amazon sale, every Google search, every Facebook ad, eventually every robot truck mile and every day I work unit. Right now, if you had this tool in place, it would generate about 800 billion in new revenue and rising. [17:22:12] And it's unavoidable because it's at the point of sale. This is what other developed countries have already figured out. You can't game your way out of it. One of the jokes I tell, but it's true, Jeff Bezos is now worth 109 billion dollars post divorce. If we were to ratchet up the income tax rate to, let's call it 75 percent, how much of his hundred nine billion dollars would we get? None, because he's not dumb enough to pay himself 2 billion dollars or 10 billion dollars a year. He pays himself like a relatively modest salary and then his money is all parked in this Amazon stock. [17:22:47] So if you wanted to get that value, you set the toll up, then you end up getting hundreds of millions, even billions from just at the point of sale of his business. And then when he takes a billion dollars out of Amazon stock every year, which he does do to buy rocket ships to Mars, he does that. It's called Blue Origin. You look it up. You take a toll on that, too. So you get his money coming and going into the business. And this is something that other countries have figured out that we need to catch up on. [17:23:18] So that is the plan. Math, I love it. Yes. [17:23:25] OK, great. Thank you so, so much, everyone. We actually because we are running out on time. We need to go ahead and move into our selfie line moment, which Andrew always loves getting having a chance with everyone. So because we are short on time, everyone will have a chance to either. Or if you come into line, will for either an autograph or a photo, there won't be time for both. So be thinking now. But which one you would like? Andrew is going to be here and we're going to line up starting along here and wrap right around. So thank you so much, everyone. We were talking about. EXETER TOWN HALL - LU 3 ORIGINALLY [19:27:24] Well, hello to him, sir. [19:27:30] Oh, it is great to be back. I went to high school here, I stayed in this in just a few months ago. [19:27:35] How many you actually saw me speak at P.A.? A few of you. I thought, wow, are you student? So fun. I graduated from Phillips Exeter in nineteen ninety two. I'm going to be new that. Yes. [19:27:50] Well, and I get 100 percent affirm that I would never be running for president if I had not attended Exeter because I grew up the son of immigrants. And the conversations around the young household were not going to run for president someday. [19:28:03] And in Exeter, those are also not the conversations. But after X-ray, I went to a brown university. Anyone here do that? Really awesome. And then I went to New York City and went to law school and became a lawyer. I was an unhappy lawyer for five whole months and then left to start an ill fated dot.com. How many of you started a business organization? All right. So if you had your hand up, you know, two things. Number one, it's much, much harder than anyone ever lets on. And number two, when someone asks you how it's going, what do you say? [19:28:41] Great. Only one answer that question. [19:28:45] So my business went great until it failed. My parents told people I was still a lawyer and is doing great. And I've been bitten by the bug and I said I need to try and get better at this. Building something. So I worked at another startup and then another. And then I became the head of an education company that grew to become number one in the U.S. Then it was bought by a bigger company in 2009. 2009 was a very tough time in much of the country. [19:29:14] Can you believe the financial crisis was 10 years ago now and this community was better insulated than many others, but it was a devastating time for much of the country. And I thought I had some insight as to why the financial crisis had unfolded is because so many of the, frankly, very smart kids I've gone to Exeter and Brown and Columbia with had headed to Wall Street and come up with mortgage backed securities and derivatives and exotic financial instruments. And that had crashed the economy. [19:29:46] And I thought, what a train wreck. That does not seem like what you would want your talent and energy dedicated to. So then I thought, well, what would you want to dedicate your talent and energy to? And the idea I had was that our young people should head to Detroit, Cleveland, Birmingham, St. Lewis, Pittsburgh and help create businesses. But that thought that thought seemed out of reach because I tried to start a business myself in my 20s and it failed. [19:30:17] So it would be impossible to ask people to take on that same mission in cities that were new to them. But I thought, well, what would be realistic is for them to learn the same way I learned because I apprenticed to more experienced entrepreneurs and leaders for a number of years to develop. So I thought, well, you could have enterprising young people go work at existing growth companies in Detroit, Cleveland, St. Lewis, Baltimore, and then help those businesses grow. [19:30:42] So that was the vision. I started a nonprofit called Venture for America to make that vision real. How did you all work at non-profits? You volunteer at nonprofits. You should all have your hand up or these pretend on that one. [19:30:57] I feel like I'm a good person. Look around you. Anyone's fact checking you on that. [19:31:04] So the way I started a nonprofit is I put some money in and I started calling rich friends with this question, Do you love America? Many smart among them said, What does it mean if I say yes to this question? And then I said, at least ten thousand dollars and a number of them, including friends from Exeter, said, I love America for 10000. So we raised a couple hundred thousand. I grew to the millions, helped create several thousand jobs in 15 cities around the country. I was honored by the Obama administration multiple times. I got to bring my wife to meet the president. So my in-laws were very excited about me that week. [19:31:40] I look at this picture of our daughter with the president. [19:31:46] How many of you? Grew up here in New Hampshire. Many of you northeast like me, I grew up in upstate New York. Midwest couple s. West Coast or Pistons or Mountain West? Anyone? So I grew up in upstate New York and then came here for high school and then Rhode Island for college. I had never been to Ohio, Michigan, Alabama, Louisiana, all these places that measure for America operated. [19:32:17] And I was staggered by the Gulf between regions where if you fly between Michigan and Manhattan or St. Lewis and San Francisco, you feel like you're spanning dimensions or decades or ways of life and not just going a few timezones. How many of you had the same sort of experience you travel to other parts of the country? So I was trying to absorb what that felt like, where I was getting clapped on the back and brought to the White House, and I was I had this sinking feeling where the work I was doing was like pouring water into a bathtub that had a giant hole ripped in the bottom, that things were getting better, not worse in many, many communities in Ohio and Michigan and Missouri. [19:32:54] And then Donald Trump won the election of 2016. How did you all react when that happened? Tears, shock. Well, I've never heard regurgitation. But there are many people who I'm sure had that that impulse. I thought his victory was a massive red flag where tens of millions of our fellow Americans decided that taking a bet on the narcissist reality TV star was the way to go. And though you might have reacted with shock or dismay or disbelief, we all have family members or friends or neighbors who celebrated. [19:33:36] That's particularly true right here in New Hampshire. Now, if you were to turn on cable news and try and figure out why Donald Trump's our president today, what answers would you get if you just turn on one of the big networks, Russia? Well, this is at that time. So you could say economy, immigrants, Russia, Facebook, racism. Hillary Clinton, Wiener, and heard that one, but maybe Electoral College. Yeah. That's that. That might have been a big explanation. Many people didn't vote. Lack of turnout. Hillary Clinton emails. [19:34:16] . So I'm a numbers guy and I looked at the numbers for a clearer explanation as to why he won. And I found it. We automated away 4 million manufacturing jobs that were primarily based in Ohio, Michigan, Pennsylvania, Wisconsin, Missouri, Iowa, all the swing states and that he needed to win if that list sounds familiar. This happened in New Hampshire, too, but it happened earlier in the northern part of the state. I've been to that part of the state. This state lost 12000 manufacturing jobs over a number of years. [19:34:51] And if you go to one of those towns, those towns have never come back. Where the plant closed, the shopping center closed. They lost population. When I was up in the northern part. Of New Hampshire, the town supervisor said, we measure our progress by how many people leave. Like if the rate of departure slows down, that's actually progress for us. That's what happens in many manufacturing communities that are hard hit. Again, four million manufacturing jobs lost in the swing states primarily. [19:35:21] And if you doubt this explanation, there's a straight line up between the adoption of industrial automation in a boating area and the movement towards Trump in that area. The strongest correlation you can find. And unfortunately, what we did to those jobs, we are now going to do two retail jobs. Call center jobs, fast food jobs, eventually truck driving jobs and on and on through the economy. How many of you noticed stores closing in? Your area of New Hampshire. And why are those stores closing? [19:35:52] One word answer Amazon or Amazon soaking up 20 billion dollars in value every single year. Closing 30 percent of our stores in malls. Most common job in the United States. Retail clerk, average retail clerks, a 39 year old woman making between nine and ten dollars an hour. What is her next move going to be when the store closes? How much did Amazon pay in federal taxes last year? Zero. That's the math. New Hampshire. Twenty billion out. Thirty percent of stores in malls closed. Zero back. Most common job starts to disappear. When you all call the customer service line of a big company and you get the software robot, you do the same thing I do. [19:36:28] Why did you pound 0 0 0 as a human human representative and to get some of that having to be. I'll do that. Oh, yeah, we all do that. That's always miserable. As soon as you hear the voice, you're like, oh, no, it's not funny. [19:36:42] But in two or three short years, the software is going to sound like this. Hey, Andrew, how can I help you? It'll be seamless ambition. Delightful. You might not even realize that software unless you know. What does that going to mean for the two and a half million Americans who work at call centers right now making 14 bucks an hour? How many have you seen self-service kiosks in a fast food restaurant like McDonald's? Every location in the country in the next two years, they say itself, sir, kiosk. [19:37:08] And now they're looking at the back of the house like the robot burger flippers and fry cookers. The rubber is really going to hit the road with truck driving or freight. How many of, you know, a truck driver here in New Hampshire? There are three and a half million truckers in the United States. Most common job in 29 states. My friends in California and I want you to imagine Asian guy goes to Exeter, goes to fancy schools. I literally have friends who are working on the self-driving trucks in Silicon Valley. They tell me they're 98 percent of the way there. A self-driving truck just took 20 tons of butter from California to Pennsylvania two weeks ago. Why butter? I've no idea. [19:37:54] But if you Google robot butter truck. [19:37:59] You'll see it comes up. And the reason why my friends in Silicon Valley are working on the robot trucks is because the cost savings are estimated to be one hundred sixty eight billion dollars a year. If they automate truck time and think about that number as the price I can. That's such a staggering sum that if you're an investor and someone comes to you and says, I've got software equipment that can help automate truck driving, I just need 500 million to develop it and hire hundreds of engineers. [19:38:28] You write that check because you see the hundred sixty eight billion dollar a year pot of gold. And if this team can make any meaningful progress, you're gonna get your money back. Multiplied many, many times over. My friends tell me that self-driving trucks are five to ten years away from hitting our highways in earnest. What will that mean for the three and a half million Americans who drive a truck for a living? [19:38:52] Or the 7 million plus Americans who work at truck stops, motels and diners that rely upon the truckers getting out and having a meal every day? Something like 10 percent of the jobs in the state of Nebraska support trucking. What will those towns look like when the truck doesn't need to stop? This is the greatest economic transformation in our country's history, what experts are calling the fourth industrial revolution. When is the last time you heard a politician say the words fourth industrial revolution? Two seconds ago. [19:39:25] And I'm barely a politician. [19:39:28] My wife would have run the other direction if she ever thought I was going to run for office again. Now the conversation around the AG now. So she jokes even now. It's like you make the worst politician ever because I'm really bad at lying. Got a terrible poker face. Even when I proposed to her, I was like so nervous. I think this ring of like burning a hole in my pocket, I was like, Oh my God, she knows. She knows. [19:39:56] Anyway, what did happen? [19:40:01] So I proposed and I eventually got a yes and the same general after noon period. [19:40:13] I know. I'm not sure I've ever told people this. [19:40:15] Sorry. I mean, I hope it doesn't. She's not embarrassed by this. But I think her exact reaction to me was, why are you doing this? Which is not exactly what you want to hear when you're on one knee. It's not exactly the desired response, but we got the. Yes, two kids later and happily married anyway. So my first reaction was not to run for president, even after I went through all these numbers that, oh, my gosh, we're scapegoating immigrants for problems immigrants have nothing to do with. [19:40:50] We're going through this historic transformation. How are we going to help our people transition? My first move was to head to Washington, D.C., to sit down with our leaders and say, what are we going to do to help our people through this time? And what do you think the folks in D.C. said to me when I said, what are we going to do? Who are you? Nothing. The three major responses I got were these. Number one, we cannot talk about this, Andrew. Like, we cannot communicate this, the American people. [19:41:23] Number two, we should study this further. Andrew. Number three, we must educate and retrain all Americans for the jobs of the future. Which sounds pretty good. How have you ever heard a politician say something effectively like that? No. But then I said, look, I looked at the studies. Do you all want to guess how effective the government funded retraining programs were for the manufacturing workers who lost their jobs? [19:41:49] I'm anchoring you low because it's very low. Zero to 15 percent success rates. They're a total dud of the former manufacturing workers. Half left the workforce and never worked again. And of that group have filed for disability. You then saw surges in suicides and drug overdoses in those communities to the point where now America's life expectancy has declined for the last three years because suicides and drug overdoses have each overtaken vehicle deaths. That's cause of death in United States America. [19:42:17] You know, the last time America's life expectancy declined for three years in a row. The Spanish flu of 1918, global pandemic that killed millions. You have to go back that far. It is highly unusual for life expectancy to ever to decline in a developed country. It only just goes in one direction, right? It is getting richer, stronger, healthier, just keeps creeping up. Highly unusual for it to go down once and then a second time. A third time. Almost unprecedented. You have to go back 100 years. So when I said this to the folks in D.C., one of them actually said to me, well, I guess we'll get better at it. [19:42:53] And one person in D.C. said something that brought me here to you all tonight here in New Hampshire, he said, Andrew, you're the wrong town. No one here is going to do anything about this because fundamentally this is a town of followers, not leaders. And the only way we will do something about it is if you were to create a wave in other parts of the country and bring that wave crashing down in our heads. And I said challenge accepted. I'll be back in two and a half years. And that was two years ago, New Hampshire. [19:43:20] And I stand before you tonight. [19:43:28] I stand before you tonight, I'm fifth in the polls to become the Democratic nominee. We raised 10 million dollars last quarter in increments of only 30 dollars each. So my fans are almost as cheap as Bernie's. [19:43:46] And we are growing because we are laser focused on the real problems, like I got Donald Trump elected and where advancing real solutions, we need to rewrite the rules of the 21st century economy to work for us and our people. Now, if you're here tonight and I really appreciate you braving the elements and coming here, I have to say I'm a briefing document anytime I do one of these events. [19:44:07] And it said expected audience, 80 people. And I look around, I'm like, ha, this seems more like, what's the fire code in this room? So what I get again, anyone any trouble? But one of the reasons why I love campaigning here in New Hampshire so much is that you all have the future of the country in your hands. And I'll give you one data point. How many like raise your hands and show me how many presidential candidates you've seen in the cycle so far. So this is before this would be eight. Go ahead. And was ready to hands. So 7 1. I appreciate that. [19:44:41] 5 7. More than five. So the reason why we all come here and stump for your vote is because you will have outsized power and influence in our democracy. I did the math. Do you know how many Californians each of you is worth? [19:45:01] A thousand Californians each. [19:45:10] So you look around this room there, about 160 of you here. That's like four football stadiums full of California. That is the power of this room. The power to change the course of history does like God. One reason it's such a joy to campaign here, because other Americans look up and they see the pipes as clogged full of money. And they think there's nothing they can do about it. They're generally right. [19:45:34] There is very little they can do about it. But you all can you can flush the pipes clean just like that. You can take a vision of the rest of the country and have it sweep the nation like wildfire. And what are we talking about? Seven weeks, six and a half weeks. Something along those lines. That's the power in this room. So it's a joy to be here. This is the real thing. Unlike all of the other window dressing and certainly a lot of the chatter from the cable news networks is completely irrelevant. [19:46:01] Property of what is going to happen here in seven weeks. So the question is, how do you use that power? What do you do with it? If you were here tonight, you know that my flagship proposal is that every American gets a thousand dollars a month starting at age 18. How well do you know about the freedom dividend? If you're here, probably everyone. And the first time you heard it, I know what you thought. You thought. That's a gimmick. That's too good to be true. That will never happen. [19:46:29] But this is not my idea. It's not a new idea. Thomas Paine was forward at the founding of the country. Call it the citizen's dividend. Martin Luther King fought for it in the 1960s. It is what he was fighting for when he was assassinated in 1968. It's called the Guaranteed Minimum Income. In his 1967 book Cancer Community, he said this is what we need to bring the country together. I had the privilege of sitting with Martin Luther King's son in Atlanta. And he told me that this is what dad was fighting for when he was killed. And my first reaction was, I can't believe you was called Martin Luther King dad. [19:47:04] But then you realize he is your dad. He's your Martin Luther King, the third. That was like, wow. It's incredible. [19:47:13] A thousand economists endorsed in the 60s. It passed the U.S. House of Representatives twice in 1971 under Richard Nixon. Family assistance plan came this close to being law. And then eleven years later, one state passed a dividend, or now everyone in that state gets between one and two thousand dollars a year. No questions asked. [19:47:30] And what state is that and how do they pay for it? [19:47:35] And what is the oil of the 21st century technology? A software, self-driving cars and trucks. A study just came out that said that our data is now worth more than oil. How many of you saw that study? How many of you have access to a Netflix password? There's a documentary called The Great Hack and it includes that study. How many of you got your data check in the mail last month? We laugh, but where did the data checks go? There's so much value being generated. Facebook, Amazon, Google, the mega tech companies that are paying zero or near-zero in taxes. [19:48:12] Do you see how it's happening in Exeter? This is your job to change it, to make sure that the Amazons of the world pay their fair share. Trillion dollar tech company paid zero in taxes. How is that possible? How do they pay less in taxes than everyone here tonight? So what we have to do is we have to get our fair share of every Amazon sale, every Google search, every Facebook ad, every robot truck mile, and then put it into your hands in the form of this dividend of a thousand dollars a month. We generate this value. [19:48:42] Your data is generating tens of billions of dollars with a value. You're not seeing a dime. What are you mean I'm making is that our data is still ours, even if we loan it to the tech companies. Am I right? So if anyone's profiting from it, should we not participate in this? Especially because after this thousand dollars a month comes into your hands, where would the money go? In real life? How much of it would be spent right here in New Hampshire? Most of it, not all of it. You might get your own Netflix password,. [19:49:19] But most of it would go to car repairs you've been putting off and daycare expenses and little league sign ups and local nonprofits and cultural and religious organizations. This is the trickle up economy from our people, our families and our communities up. This is how we make it so that everyone is included in the 21st century gains that are being generated at almost unimaginable levels underneath our feet. And I see it. I've been there. [19:49:47] I've been to the Googles and Amazons. I'm friends with some of the leading technologists in the world. And they tell me that they see what is coming out of the labs in artificial intelligence and they are deeply concerned about the impact it's going to have on the rest of the country. Well, they say, you know how the sentence never goes. It's like I see what's coming out of the lab and it's gonna be fine. But at the end of that thought, I spoke to a group of 70 CEOs in New York City, and I asked how many of you are looking at replacing back office clerical workers with A.I. and software? [19:50:21] Guess how many hands? What about a 70? All 70. The fact is, you could fire any CEO who didn't have their hand up because we know that all of their incentives are around maximizing the bottom line and their workers aren't part of that bottom line. That is the system that we have built and it is up to you all to change it. There is no one else. If you don't change it, it doesn't change. That's the power of New Hampshire, but that's also the responsibility you all have. And one of the reasons I love being here is that you take that responsibility and own it, take it very, very seriously. [19:50:55] So this thousand dollars a month goes from being dramatic to necessary and inevitable as soon as you recognize the enormity of the situation we're in. And here in New Hampshire, I've been all over the state. There are many, many rural areas that feel like they're being sucked dry truly. And you see the negative spiral that ensues when the main street starts closing. People start leaving property taxes. What happens to them? They go nothing. They're going up because then you have to support the school and they're looking around being like, well, not as many people around. [19:51:24] So then you get trapped in this tough cycle because your property taxes are creeping up and your housing. Is that your housing stock? It's actually harder to sell. So so this is the negative spiral that many communities here in New Hampshire are experiencing and their kids feel like they have to leave the community or even state in order to access the opportunities that they want. That is what we have to change. We have to make it so that the economy works for us and then we're not we're not all inputs into the machine. [19:51:54] And I know this on a personal level, in part because my wife is at home with our two boys every day, one of whom is autistic. What does her work get included at in our economic measurements every day? Zero. I get zero. Staying home with our autistic son gets a zero caregiving, nurturing, volunteering all zeros. Arts very often zero. Journalism increasingly zero or near zero. We're zeroing out many of the most important things in our lives. And this disproportionately impacts women and underrepresented minorities that the marketplace will systematically undervalue or exclude. [19:52:34] Right now in this country, I talked to my wife about this and we talked about universal basic income, which is the historic name for the Freedom Dividend, which is just everyone gets a share of the value that society is generating. And Evelyn asked me. She's like, how did it go from being mainstream? A thousand economists endorse endorsing Milton Friedman to now it takes the futurist presidential candidate does not have drag it into the mainstream like what happened in the last 50 years. [19:53:01] And what I said to her is that we got brainwashed over the last 50 years to think that economic value and human value are the same things that what the market says we are worth is what we are worth. That's how you wind up with otherwise reasonable people suggesting that we should turn a town of coal miners into coders when the mine closes. Because if the person or the town doesn't have any economic value anymore, then we stretch ourselves to ridiculous lengths to try and find some new economic purpose for them. [19:53:31] And that's going to be a losing battle over time for us all. It's a losing battle for my autistic son. It's a losing battle for the truckers who, no matter how hard they work, cannot outcompete the robot truck that's going to hit the highway. It's even a losing battle for the accountants and lawyers who are going to be competing against software that can do that job more cheaply and efficiently and more accurately than even the hardest working human professional. This is the truth of the era we're in. [19:54:06] Right now, we're measuring our economic success through three big measurements and what are they if you turn on cable news? Like what does it say about like, hey. Things are going great. Stock markets won. GDP to headline. Unemployment's the third. So stock market prices, the bottom 80 percent of Americans own 8 percent of stock market wealth, the bottom 50 percent own essentially zero. If you trumpet the stock market, you do it. You're tracking the fortunes of essentially the top 20 percent of Americans if you're generous. It's actually more accurately like the top 5 percent of Americans. [19:54:41] GDP is at record highs, while we're also setting record highs and stress, financial insecurity, overdose is student loan debt and rising again. Our life expectancy is going down while our GDP is going up. So which do you listen to? I would suggest life expectancy because if you're dying sooner, I guess not a sign of health. Yesterday, I was the me and the headline unemployment rate obscures the fact that millions are dropping out of the workforce, that people are working two or three jobs to get by. [19:55:19] That the majority of new jobs that are created are temp gig or contract jobs that don't have benefits. The fact that if you are a young person who's fortunate enough to graduate from college, you have tens of thousands of dollars in debt and there's a 40 to 44 percent chance that you do a job that does not require a degree. So if you're a parent of a college age person, they're coming out and you feel that uncertainty, you're not alone. [19:55:43] If you are a young person, we have set you up with massive indebtedness and a very insecure economy. In terms of your ability to climb the corporate ladder, that may or may not exist if you're a young person, I apologize to you because we have left you a mess. We need your help to clean it up. The first thing to do is to acknowledge the crisis state we're in. So if GDP, corporate profits in the headline unemployment rate aren't the right measurements. What would actually get you excited if I said it got better here in Exeter? [19:56:16] Health, right? Healthy life expectancy. That's pretty core. It's like I might say, hey, you got healthier, you're living longer. Clean air and clean water. I said we've got more sustainable, our emissions went down. You would be happy about that. Mental health and freedom from substance abuse. Say, I got happier in New Hampshire, unfortunately, is one of the epicenters of the opiate epidemic. [19:56:38] Eight Americans are dying of drugs every hour, which is unconscionable. And that was a disease of capitalism run amok. We let some of the drug companies profit to the tune of tens of billions of dollars and kill tens of thousands, even hundreds of thousands of Americans. So these are the measurements that would tell us how we're actually doing. How about childhood success rates? How about proportion of elderly Americans who can retire in quality circumstances, income and affordability? [19:57:05] So these are the things that actually will tell us how we're doing. And as your president, I will update GDP to these measurements. And that sounds like magic, but it's really not. We made up GDP almost 100 years ago and even the adventure of GDP, so this is a terrible measurement of national well-being and we should never use it as that. And that was a hundred years ago. Think about that. So now we're following the century, the old measurement off a cliff and being like, hey, guys, things are going great. [19:57:33] Look at GDP while our people are struggling and suffering. Self-driving trucks will be great for GDP. They're going to be terrible for many American communities. So you have to line up the measurements to tell us how we are doing. Donald Trump in twenty sixteen said he was going to make America great again. And then what did Hillary Clinton say in response? America's already great. Remember that? [19:58:00] I know it's been a long three years like there. Oh, it's about to end, though. We're gonna end it, am I right? Applause So Hillary's response did not resonate with many Americans when she said America's already great. The problems are real. The suffering is real. We have to acknowledge the depth and severity of the problems, but then we need solutions that will actually help us all move forward. What we're Donald Trump's solutions. [19:58:34] He said we're gonna build a wall. We're gonna turn the clock back. We're gonna bring the old jobs back here. Hold those things to eggs that are you know, we have to do the opposite of these things. We have to turn the clock forward. We have to accelerate our economy and society as quickly as possible to rise to the real challenges of this era. We have to evolve in the way we think about ourselves and our work and our value. And I am the ideal candidate for that job, because the opposite of Donald Trump is an Asian man who likes math. [19:59:11] Now, most of you may not know this math is an acronym. What does it stand for? [19:59:17] Make America think harder. That's right. We have to identify the real problems and adopt real solutions. I feel like this is the right place for that. I feel like Exxon is a very smart town. Maybe in part because most the time I was here has had my nose in a book. [19:59:33] Is just trying to smarten up myself. [19:59:39] The problems are real, and unfortunately, the Democratic Party has been acting as if Donald Trump is the source of all of our problems. He is actually a symptom. He's a manifestation of a deeper set of problems that we have to cure as a country. The Democratic Party, in my mind, should have had a real period of soul searching when Donald Trump won. It's like, how the heck did we lose to this guy? How the heck did tens of millions of Americans decide to head this direction? [20:00:07] And a lot of it is that the feedback mechanism between the people in DC has broken down. Many people throughout the country don't feel like government is working for them. For us. And that's not a crazy feeling. Some of you might have that feeling, too. The feedback mechanism is breaking down. The fact is that Washington, D.C. today is the richest city in our country. What do they produce? Gridlock. Unclear. [20:00:34] Produce a lot of wealth, though, somehow. Our politicians in D.C. succeed whether we succeed or fail. And that is the the feeling that is driving many people towards Donald Trump. We have to restore that feedback mechanism by saying, look, the government is going to activate resources and put them in our hands when to trust our people. We're gonna build the trickle up economy. [20:00:59] I'm a parent. Like many of you, raise your hand if you're a parent. [20:01:04] So if you're a parent like me, you had this sense of unease. Maybe you've even been afraid to express it. If you were born in the United States of America in the 1940s, would something you might have been. You look great. [20:01:15] I mean, I wrote this for you about the 40s. Do the math. 30S. Oh, you look fantastic, sir. [20:01:26] 1938. [20:01:28] If you were born in the 1940s, the United States of America, there's a ninety three percent chance that you were gonna do better than your parents. That's the American dream. That's pretty strong. That's the dream that brought my parents here as immigrants. If you were born in the 1990s, which is some of you, I'm guessing. You're down to a 50/50 shot and it's heading heading downward very, very quickly. That is what we have to address New Hampshire. If you don't address that, it's going to be very, very hard to bring this country together. [20:02:01] I am running for president not because I fantasized about being president. I'm running for president because like many of you in this room, I'm a parent and a patriot. I have seen the future that lies ahead for our kids. And it is not something I'm willing to accept. And you should not accept it either. We have to do better for them. If we do come together in this way, we can be able to look our kids in the eyes and say to them, your country loves you, your country values you and you will be all right. And that is the message I want us to send to the rest of the country. In February of this year. Thank you all very much. So we're going to make it together. [20:02:49] We're going to rewrite the movie economy away for you because the rules are not working for you. They are not working. Am I right? I love it. I love being here so much. [20:03:02] What's the number one criteria for Democrats in terms of the nominee be Donald Trump? That's right. That's actually number one. How many for you that doesn't know. One good deal is right that it was a poll right here in New Hampshire that said that 10 percent of Trump voters would choose me over Donald Trump. Which is all we need to win. [20:03:27] You get all the Dems and progressives together and then you peel off independents and libertarians and 10 percent of Trump voters, we win this thing in a landslide. [20:03:35] Now, most Democrats have not realized yet that I am the candidate to take on and beat Donald Trump in 2020. But more people are realizing it every single day. It's a beautiful feeling. One survey came out that said that 18 percent of college Republicans would choose me over Trump. Think about that. It's us plus tend to 18 percent of Trump voters. And we're going to knock him out so bad. It's gonna be a landslide. And it has to start right here in New Hampshire and the next number of weeks. I love you guys. We'd love to take some questions. Thank you all so much. So so this handsome gentleman here is Zach Grossman is my campaign manager and he has passed me a note said that we just had our one millionth donation to the campaign. [20:04:24] As I said. What was it, someone in this room where you on the phone while I saw you? [20:04:37] Yeah. So I would love to take a in, sir. You had. Yeah. Yeah. Let's get this man on my career, I'll do it. [20:04:46] I'm coming your way, sir. I got this. [20:04:50] Thank you. [20:04:52] I'm attorney David Mirsky from Exeter. And my question is, I know that you have. The brilliant ideas for the future, but. Um, I just want to know, how are you going to defeat the evil that Donald Trump really is? [20:05:13] Thank you, David. [20:05:18] In many ways on the ideal foil for Donald Trump. And if you look at the candidates, he has messed with every single candidate in the field except for me, because I'm better at the Internet than he is. [20:05:34] And a lot of his strongest attacks don't work on me at all, because what does he do? [20:05:38] He caricatures his opponents as D.C. insiders and creatures. [20:05:42] I'm another outsider, but unlike him, I want to solve the problems of the American people and improve our way of life so I can draw in again 10 percent plus of Donald Trump voters who don't like D.C. very much. And as the Democratic nominee, all the Democrats are going to be obviously super excited. A survey just came out that said I am among the least disappointing nominees for the Democratic field. [20:06:08] Oh, really? [20:06:08] But this is an incredibly important stat because they survey thousands of dams and lakes, line all the Dems up and said, who would you be disappointed in and the least disappointed in? [20:06:19] And I was among the least disappointing. [20:06:22] Which means that the turnout is going to be high because people will get behind me and then I'll get again the 10 to 18 percent of Trump voters. And can you imagine me debating him? One of the things I can do more effectively than the other candidates is I can make him seem completely ridiculous. [20:06:47] Let's go, man, woman. [20:06:50] Thank you, Lacey. [20:06:59] How would the freedom dividend affect those on Social Security? [20:07:04] It's tax on top of Social Security. So I would increase the income of every Social Security recipient right now by a thousand dollars a month. And that seems again, too good to be true. But I've talked to hundreds, thousands of Americans who are receiving Social Security, and a couple of things became very clear. Number one, it's impossible to retire on Social Security alone. Number two, Social Security benefits are different depending upon whether you have to take time off from work often to parent to child. [20:07:30] So in many families, the mom is getting less and Social Security benefits. Number three, millions of Americans are facing essentially never retiring because they have to work until the day they die because they can't afford to stop. And if you look at the demographics, you see that we have to reformat our economy around caring for our aging relatives, but we don't have the economic resources in place to do so. So that's what this thousand dollars a month can do for our society. [20:08:00] It can enable Americans to retire with dignity because you a thousand dollars plus Social Security, then you're talking and then we can put actual resources and work to take care of people as they age gracefully instead of right now. I have no desire to go into a convenience store and see a senior citizen working until the day they die. That should be a teenager working for beer money, am I right? Yeah, I'm proposing the greatest expansion in Social Security benefits in history, and what I'm talking about now was mainstream wisdom in the 60s when we passed over security. It's just we've got a very, very extreme distant sense that. [20:08:42] Your. You have a lot of good ideas about campaign finance reform, and it's one of the most important things to me. We have a broken system. Thank you. So what would you do to fix our broken campaign finance reform and what hurdles do you think you will face when you try to do that? [20:09:03] I love this question so much because this is one reason why Americans have lost complete faith in government. Again, millions of dollars of lobbyist cash is clogging the pipes and you feel like your vote doesn't matter. There was a joke headline that said Americans should hire our own lobbyist because that's the only way we would actually get anything done. It's like I represent the American people. So most every Democrat will say we need to overturn Citizens United, which is correct. [20:09:30] We do need to do that. But the fact is corporate money had overtaken our government before Citizens United. Citizens United has made it more extreme. So what we have to do is we have to unify the people and the money. And I said this on the debate stage in L.A., fewer than 5 percent of Americans donate to political candidates or campaigns right now. So my proposal is to give every American one hundred democracy dollars used or lose it that you can give to any candidate or campaign that you want that would get the donate rate from 5 percent to what? What do you think? [20:10:04] 60 or 70 Americans are pretty lazy. So we've got a hundred free dollars, the lobby will be like, ah, I can't be bothered, but you could get it up to 60 percent. And if you had it to 60 percent, you would wash out the lobbyist cash by a factor of four or five to one. And then if a person was running for office and got ten thousand people behind them, that's a million dollars in financing. And then the lobbyist comes along and says, I've got twenty five thousand dollars for you could be like pass because I'm getting a million dollars and the people I'm going to represent them. So that is something that is bipartisan because many Republicans don't love. [20:10:40] While I stretch, I mean a lot of Republicans are in the pocket of these companies. I mean, a lot of Dems do, of course. I mean, I have a friend I went to Exeter with who worked in Capitol Hill for years for the right reasons, and he hated lobbyists when he showed up on Capitol Hill. What does he today, 15 years later, lobbyist? Yeah. You know, the you know the drill. So. Democracy dollars would free up legislators from having to pass the hat all the time. I'm for term limits of 12 years. We should send people to D.C. to do work and then come home. [20:11:17] Problem is that they're trying to make like a multi decade long career out of being in D.C. and that should not be the orientation. So the first big move is to pass some sort of public financing democracy dollars. But I'm going to suggest to you all that one of the ideal ways to get money out of politics is to send someone into the White House that doesn't owe anyone a dime in terms of corporate PAC money. And that's me. [20:11:43] Tens of millions of dollars raised in increments of only 30 dollars each. Purely people powered, purely grassroots funded. And I joke sometimes that, of course, the companies would never have sent me because I'm like the anonymous Asian man. Like, that's the dumbest. You know, you're like the corporate being like, oh, this is gonna work. Let's send that guy. [20:12:02] No. [20:12:02] Like, I'm just another citizen who represents our own interests and we need to break the stranglehold on the money. So I agree with Tom Stier. I agree with a lot of other, you know, times I went to Exeter as well. And, you know, we need to break the stranglehold of corporate money and flood the system with people powered money. I want to overturn Citizens United. But the fact is the corporate money is going to find a way to creep back in unless we flush it out. [20:12:27] I would also try and shut the revolving door between government and lobbyists in various ways, and I would have a ban on ever lobbying. But if you're gonna do the ban on ever lobbying or ten years, which is an eternity in DC because everyone ages out and then your relationships don't matter anymore. [20:12:44] Then you will need to ramp up compensation at the government level, say, look, no going to industry, but we'll pay you more. And that is a very, very fair trade. So, my friend. Well, I guess I went to there with like maybe he would not have been a lobbyist if there been a ban on being a lobbyist and he'd young paid a little bit more on Capitol Hill. He was a good guy. I mean, I'm still president. [20:13:08] Hi. When I was you. So I'm a student at Bill's Exeter. And my question for you is, what would you do to stop gerrymandering and give more people access to the ballot? [20:13:19] It's an excellent question. There's a lot of voter suppression going on around the country. Gerrymandering is a huge problem. It should be that voters choose our leaders, not leaders, choosing their voters. So that the leaders in terms of reform and activism on this are Eric Holder and President Obama who have this anti-terrorism pandering initiative that I endorse wholeheartedly. There are a lot of things I think we should do to try and elevate the ability to vote. [20:13:42] I would have automatic voter registration. Anytime you get like your driver's license or something like that. We should be registering you automatically. We should be giving people the day off on Election Day so that more people are able to vote. So there are a lot of things we can do to try and encourage voting participation rates. We almost deliberately make it hard to vote in this country. And that includes, unfortunately, the way we're drawing up the voting areas because that's being drawn up to favor one party or another. [20:14:10] And in terms of democracy, reform, and this is related to this, I'm for ranked choice voting because you need to be able to have people express their preference. You need a more dynamic party system in this country. Right now you have this duopoly and I'm a Democrat. But right now, independents outnumber Democrats and Republicans in terms of self identification. And if you're an independent, you look up and say, I'm not sure either of these parties are getting it. All right. [20:14:36] And your voice is getting drowned out because we have this winner takes all voting system. If you had ranked choice voting. You could express your true preferences. It would make our democracy much more vibrant and dynamic. So the Electoral College has problems, but I think that advocating for its abolition is frankly a stupid waste of time because you would require a super majority of states to get on board with it and literally like many of them would be like giving up their own power and shooting themselves in the foot. [20:15:16] The other thing is, if you were Democrats and you lose by rules that are literally engraved in the Constitution, and then you say, hey, we should change the rules. What does that say? You're saying like, I can't win by the rules, so I'm going to try and change them. If you're going to advocate for changes in the Electoral College, you have to win an election by the rules you have first and then go and say, hey, let's change these rules. If I'm for anything, I'm for proportional allocation of electors. Because and you will benefit from this and it's cool. I love you for it. But there are only a handful of states that people campaigning because their swing states. If you had proportional allocation of electors. [20:15:54] , then you would have candidates going to any state just to try and rack up some support and votes. And it would even it out in a much more truly Democratic way. Another side effect of abolishing the Electoral College that most people don't reflect on, it would privilege people in major cities in urban areas because every candidate would just go where they could get a lot of bang for their buck in terms of media exposure because the vote's a vote. So would I ever go to a rural area to campaign? [20:16:25] I probably wouldn't. I would just go to every major media market because anytime I show up New York or Los Angeles TV, I reach many more people. So there are problems with trying to abolish the Electoral College, starting with the fact that it's completely impractical unless you had dozens of states that are willing to vote against their own interests, which we all know is not going to happen. [20:16:49] I'll let you choose because I see so many hands and they all seem so smart. [20:16:58] I was interested in what you would do in your first year to address climate change if you were elected. [20:17:03] How many of you all are concerned about climate change? Yes, me too. It is bearing down on us. I was in Portsmouth and there were buildings that are literally flooding more regularly now than they were years ago. There is a multi-million dollar shrimping business that went to zero because the water got too warm and the shrimp died. If you saw me several debates ago, I outlined the new third position in American politics on climate change. Remember this position? Number one, we need to fight climate change. [20:17:28] Position number two. Climate change is a hoax. And then my position number three is it's worse than you think and it's already here. You all remember this. And then people were like, oh, Andrew is being negative. And then all of a sudden they adopted my position like the next debate. He's right. We need to invest hundreds of billions of dollars in protecting ourselves right now. You can't have towns in New Hampshire that are flooding and then having to fend for themselves on it. [20:17:55] So no one put a price on carbon. Day one, if you're polluting, you have to have that cause built into your bottom line, the business. And that would give us tons of resources to try and move towards wind and solar. And it would make the companies that are polluting have to become much more efficient or pay big bucks into the system. Climate change action and financial insecurity in my mind are tied together because right now 70 percent of Americans are living paycheck to paycheck. [20:18:27] Almost half can afford an unexpected five dollar bill. So if you go to them and say we need to fight climate change, what is their reaction? Can't afford it. I'm worried about next month. You know, like a year from now, it has to wait. And then what's the next natural reaction? It's probably not going to be so bad anyway. Or like maybe they're just hyping it up. We have to get the boot off people's throats so that they actually can focus on the bigger problems instead of just putting one foot in front of the other. [20:18:56] If you put a resource in the people's pockets, then instead of hearing we have to fight climate change in thinking, oh, my costs are going to go up, it's gonna be more inconvenient. We're going to lose jobs, which is what many Americans here they'll think. Yeah, you're right. We have to fight climate change because we're going to be here while my future secure. My kids future is secure. [20:19:15] The big move I would make is to build environmental sustainability into our actual economic measurements, because right now that tug of war is something that we're losing on with many Americans where you say we need to fight climate change and lead us here higher costs. The argument I'd make is what is the going to be the cost of climate change if we do nothing? Trillions of dollars easily. What we have to do is internalize that cost into our current measurements and say, look, when you pollute, that has a cost. [20:19:42] If we inaction has a massive cost, we have to act, invest hundreds of billions of dollars and make our infrastructure more resilient before the fact. And if this seems dramatic, we've already moved a town in Louisiana because the water levels rose. Do we think that's the only town that likely will have to be relocated? Of course not. There are gonna be dozens, maybe hundreds of towns around the country. [20:20:07] So we have to start making bigger moves now. And that's what I would champion as president from day one. I'm also the only candidate who's proposing a constitutional amendment to address climate change in our generationally because we can't let this be something that flip flops from one administration to the next. [20:20:27] All right. I'm going to be the bad guy. Thank you guys for your patience. We're going to take one more question and then this is very important, the selfie line. If you decided to plant yourself here earlier this evening, you won the lottery because there were going to have the line go this way will be very smooth and efficient. Get the pictures, get the selfies and appreciate how long you've waited here tonight. So one more question. You going to do this? All right. [20:20:58] Shout out. I need give me an even number between one and three of you. [20:21:07] That's how we roll, baby. Thank you. [20:21:15] Hi, Mr. Yang. My name is John and I'm with the Partnership to Protect Our Retirement Future. And my question is about the what the financial transaction tax. We'd like to call it the retirement tax, because it would really hurt a lot of it. Well, it sounds good on paper. It would hurt a lot of the middle class people. It would really it would hit all for one case, for three B's. It wouldn't hit anybody with a 529. And it really hit pensions. Any pension funds. So I was just wondering, do you have a position on it? [20:21:48] That's. [20:21:55] I want to strengthen the middle class and put everyone in a position to be able to eventually retire with dignity. I want to rewrite the rules of the economy to work for us and our people across the board. I do think a financial transactions tax is a good idea. And the fact is, if you're a retiree who has your accounts and like for one K, many of those investors are through ETF exchange traded funds and they're not like turning over their assets all the time. [20:22:22] And if you had a financial transactions tax, you could easily, if you were a firm, say, hey, maybe we're not going to incur more financial transactions and have our transaction costs go up. If you have before when K or 529, you're probably allergic to any kind of transaction fees or taxes, you'd want the money to be there and then grow steadily. So I'm for a financial transactions tax. [20:22:43] The bigger picture, I'm for putting money into the hands of every American and making this economy work for us instead of trying to see ourselves as inputs into the giant capital efficiency machine. Because right now we're in a race that frankly more and more of us are not going to be able to win. We have to evolve from thinking of this as like some kind of rugged individualism, meritocracy, where everyone's worth is determined by a combination of their like hard work and virtue and character and start evolving to say we all have intrinsic value. [20:23:15] Whether your able bodied, disabled software engineer or a stay at home mom, we have to make this economy work for everyone and let the rest of the country know it's not left. It's not right. It's forward. And that is where you all are gonna take us in 2020. Thank you all so much for a handshake. Thank you.

House Oversight and Government Reform Committee holds a hearing on Toyota safety record with Ray LaHood, David Strickland of the NHTSA Mr. Akio Toyoda, Mr. Yoshimi Inaba Other witnesses will include Joan Claybrook, Clarence Ditlow, Sean Kane of the Safety Research and Strategies Inc., and two victims 10:58:50 >> GOOD MORNING. THANK YOU ALL FOR BEING HERE. 10:58:58 IT IS HARD TO IMAGINE THE HORROR OF THE EVENT THAT TOOK THE LIVES 11:00:00 AS THIS CAR REACHED TOP SPEED IN JUST A FEW SECONDS, IT WAS ALL 11:00:02 HE COULD DO TO KEEP IT UNDER CONTROL. 11:00:06 IN A FRANTIC CALL TO 911, HIS BROTHER-IN-LAW, CHRIS, REPORTED 11:00:12 THE GAS PEDAL WAS STUCK, THE BRAKES DID NOT WORK, AND THEY 11:00:17 WERE BARRELLING DOWN ON AN INTERSECTION. 11:00:21 HE YELLED OVER THE PHONE, HOLD ON, HOLD ON, HOLD ON, HOLD ON 11:00:28 AND PRAY. PRAY. 11:00:30 THOSE WERE HIS LAST WORDS. WE NOW KNOW THAT THE TERRIFYING 11:00:36 DEATH OF THIS FAMILY WERE NOT CAUSED BY A FREAK ACCIDENT. 11:00:41 IT TURNS OUT THAT PEOPLE FROM ALL OVER THE COUNTRY HAD BEEN 11:00:46 COMPLAINING ABOUT SUDDEN ACCELERATION IN TOYOTA VEHICLES. 11:00:52 WHAT PEOPLE ARE WONDERING IS, WILL I BE NEXT? 11:01:02 OUR INVESTIGATION FOUND THAT THE NATIONAL HIGHWAY TRAFFIC SAFETY 11:01:06 ADMINISTRATION HAS RECEIVED NEARLY 2,500 DRIVER COMPLAINTS 11:01:13 ABOUT SUDDEN ACCELERATION IN TOYOTA VEHICLES. 11:01:15 WE HAVE DISCOVERED THAT SINCE 2000, ONE INSURANCE COMPANY, 11:01:21 STATE FARM, REPORTED OVER 900 CASES OF SUDDEN ACCELERATION IN 11:01:27 TOYOTAS. WE HAVE ALL LEARNED THAT THEY 11:01:33 KNEW VERY LITTLE ABOUT IT AND WHEN IT DID DO SOMETHING, 11:01:36 ACTIONS WERE VERY LIMITED. SIMILARLY, TOYOTA IGNORED OR 11:01:40 MINIMIZED REPORTS OF SUDDEN ACCELERATION. 11:01:45 TOYOTA FIRST BLAMED THE PROBLEM ON IMPROPER INSTALLATION OF 11:01:47 FLOOR MATS. NEVER MIND THAT MANY REPORTS OF 11:01:53 ACCELERATION INVOLVED VEHICLES THAT DID NOT EVEN HAVE A FLOOR 11:01:55 MAT. NOW THEY BLAME IT ON STICKY GAS 11:02:01 PEDALS. I REMAIN SKEPTICAL THAT THESE 11:02:03 ARE THE SOLE CAUSES, THE WAY THESE COMPLAINTS WERE HANDLED 11:02:09 INDICATES PROBLEMS AT BOTH NITSA AND TOYOTA. 11:02:14 SINCE 2003, NITSA HAS UNDERTAKEN A MULTITUDE OF SUDDEN UNSENDED 11:02:22 ACCELERATION. THERE IS A SERIES QUESTION OF 11:02:25 WHETHER THEY USED ALL OF THE REGULATORY CLUES TO THOROUGHLY 11:02:32 INVESTIGATE THIS ISSUE. WHEN I READ ACCOUNTS ABOUT HOW 11:02:38 FORMER NITSA OFFICIALS WERE HIRED BY TOYOTA AND HELPED 11:02:45 NEGOTIATE THE SCOPE OF REGULATORY INCREASE, I HAVE MY 11:02:49 OWN DOUBTS. IN THE CASE OF TOYOTA, THERE IS 11:02:54 STRIKING EVIDENCE THAT THE COMPANY WAS AT TIMES MORE 11:03:00 CONCERNED WITH PROFIT THAN CUSTOMER SAFETY. 11:03:02 TOYOTA'S OWNER INTERNAL DOCUMENTS INDICATED THAT A 11:03:05 PREMIUM WAS PLACED ON DELAYING OR CLOSING NITSA. 11:03:16 BLOCKING THE DISCOVERY OF SAFETY DEFENSE. 11:03:19 TOYOTA OFFICIALS BRAGGED ABOUT SAVING ONE OF THE MILLION BY 11:03:23 PREVENTING THEM FROM FINDING A DEFECT RELATED TO THE SUDDEN 11:03:29 ACCELERATION. THE RECENT PRIUS RECALL 11:03:32 REPRESENTS YET ANOTHER TROUBLING PATTERN OF DELAY WHEN IT COMES 11:03:35 TO REVEALING SAFETY INFORMATION. A FEW WEEKS AGO, TOYOTA 11:03:41 ANNOUNCED IT WOULD RECALL CERTAIN MODELS BECAUSE OF A 11:03:44 SOFTWARE PROBLEM RELATED TO THE BREAKTHROUGH SYSTEM. 11:03:48 DRIVERS BEGAN COMPLAINING TO NITSA ABOUT PRIUS BRAKE PROBLEMS 11:03:53 LAST YEAR. TOYOTA KNEW ABOUT THE PROBLEM 11:03:56 AND WAS ALREADY ADDRESSING IT FOR NEW CARS ON THE ASSEMBLY 11:04:01 LINE. AT THE SAME TIME TOYOTA WITH 11:04:04 HELD THAT INFORMATION FROM BOTH NITSA AND CURRENT PRIUS DRIVERS 11:04:10 UNTIL MONTHS LATER. IF THE SPOTLIGHT HAD NOT ALREADY 11:04:13 BEEN SHINING BRIGHTLY ON TOYOTA, WOULD THE PUBLIC HAVE EVER BEEN 11:04:18 TOLD THAT IS A QUESTION THAT NEEDS TO BE ANSWERED? 11:04:22 THEY FAILED THE TAXPAYERS, TOYOTA FAILED THE CUSTOMERS. 11:04:28 THOUSANDS OF COMPLAINTS, MULTIPLE INVESTIGATIONS AND 11:04:33 RECALLS ARE BAD ENOUGH. WE NOW HAVE 39 DEATHS ATTRIBUTED 11:04:39 TO SUDDEN ACCELERATION IN TOYOTAS. 11:04:42 TO GIVE THAT HORRIFYING NUMBER SOME PERSPECTIVE, THERE WERE 27 11:04:47 DEATHS ATTRIBUTED TO THE FAMOUS PINTO EXPLODING GAS TANK ON THE 11:04:54 1970s. IN SHORT, IF THE CAMRY AND THE 11:04:58 PRIUS WERE AIRPLANES, THEY WOULD BE GROUNDED. 11:05:02 THESE FACTS RAISED SEVERAL IMPORTANT QUESTIONS. 11:05:06 IS IT SAFE TO DRIVE THESE CARS? IS TOYOTA NOW SERIOUS ABOUT 11:05:13 SOLVING THE PROBLEM? CAN NITSA SAY THE CAUSE OF THE 11:05:17 PROBLEM HAS BEEN IDENTIFIED AND FIXED? 11:05:20 WHAT CAN WE DO TO PREVENT THIS KIND OF THING FROM HAPPENING 11:05:24 AGAIN? CAN THE AMERICAN PEOPLE TRUST 11:05:30 NITSA TO ENSURE VEHICLE SAFETY? WE WILL FIND AN ANSWER TO THESE 11:05:34 AND MANY OTHER QUESTIONS TODAY. ON THAT NOTE I YIELD TO THE 11:05:38 GENTLEMEN FROM CALIFORNIA, CONGRESSMAN DARRELL ISA FOR AN 11:05:42 OPENING STATEMENT. >> THANK YOU, MR. CHAIRMAN. 11:05:45 HOUSE KEEPING. I WOULD ASK CONSENT TO MR. JEFF 11:05:49 DAVIS OF THE COMMON WEALTH OF KENTUCKY BE ALLOWED TO. 11:05:52 >> SIS PATE AS A MEMBER RECOGNIZE THAT IT WILL BE 11:05:58 UNLIKELY THERE WILL BE TIME TO ASK QUESTIONS. 11:06:00 >> WITHOUT OBJECTION. >> THANK YOU, MR. CHAIRMAN. 11:06:03 IT IS THE OBLIGATION OF YOURSELF PRIMARILY AND MYSELF TO SET THE 11:06:08 TONE FOR HEARINGS. TO TEE UP, IF YOU WILL, THROUGH 11:06:13 OPENING STATEMENTS HOW WE VIEW WHAT WE ARE GOING TO PROBABLY 11:06:15 SHARE TODAY. I WOULD LIKE TO COMMEND YOU FOR 11:06:18 THE WORK YOU HAVE DONE IN YOUR OPENING STATEMENT AND ADD A 11:06:20 LITTLE BIT MORE TO IT. I WOULD LIKE TO PUT UP THE SLIDE 11:06:27 OF THE RECALLS FROM RECALL TO RECOVERY. 11:06:32 THIS SLIDE SHOWS A LITTLE OF THE HISTORY THAT THE CHAIRMAN 11:06:35 ALLUDED TO, THE 1978 RECALL, THE FORD PINTO AND THE GM RECALL FOR 11:06:42 STEERING PROBLEMS, 5.8 MILLION VEHICLES. 11:06:46 THE VERY SAD AND GREAT LOSS OF LIFE, 1982 TYLENOL RECALL OF 31 11:06:52 MILLION BOTTLES OF TYLENOL PILLS WHICH OF COURSE LED TO THE 11:06:58 TAMPER-PROOF BOTTLES WE TAKE FOR GRANTED TODAY. 11:07:01 THE 1996 FORD RECALLS OF EIGHT MILLION VEHICLES FOR FIRES AND 11:07:04 OF COURSE THE WELL-PUBLICIZED GM RECALL AFTER THEIR PICKUP TRUCKS 11:07:11 WOULD SPONTANEOUSLY EXPLODE IF HIT IN THE REAR. 11:07:16 THIS IS AN EXAMPLE OF COMPANIES BOTH AUTO AND NON-AUTO WHO OVER 11:07:20 THE YEARS HAVE FACED CLEAR CHALLENGES. 11:07:24 IN THE CASE OF THE AUTO COMPANIES, WE EXPECT TO SEE THEM 11:07:28 AGAIN. WE JUDGE THEM NOT BY WHETHER 11:07:33 THEY HAVE UNSEEN AND DEVELOPED PROBLEMS IN THEIR VEHICLES, BUT 11:07:38 HOW QUICKLY THEY RESPOND AND HOW THEY IN FACT REACT AFTER 11:07:43 SCRUTINY EITHER WITHIN THEIR OWN COMPANY OR FROM WITHOUT BRINGS 11:07:46 THESE TO THEIR ATTENTION. I WILL NOT CALL ANY OF THESE 11:07:50 FIVE A SUCCESS EXCEPT FOR TYLENOL. 11:07:54 TYLENOL WAS A VICTIM OF OTHER PEOPLE POISONING THEIR PRODUCT 11:07:58 AND YET THEY TOOK A STEP THAT HAS CHANGED SAFETY OF THE 11:08:04 MEDICINES WE TAKE FOR GRANTED TODAY. 11:08:08 # RECENTLY THEY AIRED A TELEVISION 11:08:18 COMMERCIAL. IN IT THEY SAID IN FACT GOOD 11:08:21 COMPANIES FIXED THE MISTAKES THEY MADE, BUT GREAT COMPANIES 11:08:28 LEARN FROM THEM. WE WILL BE ASKING THE VERY 11:08:33 QUESTIONS AS TO WHETHER OR NOT THEY ARE A GOOD COMPANY OR A 11:08:37 GREAT COMPANY. MY 2nd SLIDE I THINK DEPICTS ONE 11:08:43 OF THE CHALLENGES WHY PRIOR TO TODAY WE CANNOT SAY TOYOTA WAS A 11:08:46 GREAT COMPANY. PERHAPS NOT EVEN A GOOD COMPANY. 11:08:49 WHEN IN 2007, WHAT WE KNOW FOR A FACT IS THAT FLOOR MAT PROBLEMS 11:08:57 OR GAS PEDAL ENTRAPMENT WERE DISCOVERED IN SIMILAR VEHICLES 11:09:02 IN THE UNITED STATES AND JAPAN. IN THE UNITED STATES WORKING 11:09:06 WITH NITSA, A NEGOTIATED FIX RELATED TO THE CARPETS OCCURRED. 11:09:12 IN JAPAN THE GAS PEDAL LIKE THE ONE SEEN HERE TODAY WAS SHORT. 11:09:23 IN 2009 NEARLY TWO YEARS LATER WE HAD THE SAD AND FATAL LOSS OF 11:09:29 WHICH IS IN ALL LIKELIHOOD OR REPORTED AND NOT FORMALLY 11:09:34 CONTESTED TO BE A CARPET ENTRAPMENT PROBLEM OF AN 11:09:38 AUTOMOBILE LOANED BY BOB BAKER, A LOCAL DEALER IN MY CITY THAT 11:09:41 LED TO THIS LOSS OF LIFE. TODAY, IN 2010, GAS PEDALS 11:09:49 ARE SHORTENED AT DEALERS AROUND THE COUNTRY. 11:09:52 IT IS VERY CLEAR THAT AT LEAST AT TOYOTA, A POSSIBLE SOLUTION 11:09:58 NOW SEEN AS SUPERIOR WAS AVAILABLE, CONTEMPLATE AND 11:10:03 EXECUTED, BUT NOT FOR THE VERY CAR THAT ULTIMATELY THE S 350 11:10:08 THAT LED TO THE LOSS OF LIFE. TODAY WE WILL BE ASKING TWO 11:10:13 QUESTIONS. HOW COULD NITSA IN THIS MODERN 11:10:16 AGE IN WHICH I CAN GOOGLE SECRETARY LE HOOD'S NAME AND GET 11:10:20 PICTURES FROM ALL OVER THE WORLD TO GET INFORMATION AND BIOAND 11:10:24 ALMOST ANYTHING FROM DATABASES AROUND THE GLOBE HOW IS IT NITSA 11:10:34 DOES NOT HAVE A SYSTEM TO KNOW ABOUT EVERY REPORT WHETHER IT'S 11:10:37 A STICKY ACCELERATOR IN GREAT BRITAIN OR WHETHER IT IS A 11:10:41 TROUBLED SYSTEM IN CANADA OR WHETHER IT IS A DIFFERENT, BUT 11:10:47 SIMILAR VEHICLE IN JAPAN, NITSA IS NOT PREPARED TO ACT. 11:10:52 SOME WOULD SAY WE SHOULD IN FACT ADD TO OUR BODY OF LAWS I'M 11:11:07 DELIGHTED TO HAVE PLY FRIEND AND FORMER COLLEAGUE HERE BECAUSE IT 11:11:12 WILL BE ON HIS WATCH THE SECRETARY OR THE DEPARTMENT OF 11:11:16 TRANSPORTATION AND WILL BE A GOOD ORGANIZATION DEALING WITH 11:11:19 THE SPECIFIC PROBLEMS OR A GREAT ORGANIZATION LEARNING FROM THE 11:11:24 MISTAKES OF THE PAST. I THANK YOU FOR HOLDING THE 11:11:31 HEARING AND I YIELD BACK. >> THANK YOU FOR YOUR STATEMENT. 11:11:34 THIS TIME WE LIKE TO INTRODUCE OUR FIRST WITNESS FROM THE 11:11:39 HONORABLE RAYMOND H. LE HOOD FROM THE U.S. DEPARTMENT OF 11:11:43 TRANSPORTATION. IT'S A TRADITION THAT WE SWEAR 11:11:50 ALL OF OUR WITNESSES. STAND AND RAISE YOUR RIGHT HAND. 11:11:57 DO YOU SOLEMNLY SWEAR TO TELL THE TRUTH, THE WHOLE TRUTH AND 11:12:01 NOTHING BUT THE TRUTH? >> I DO. 11:12:03 >> LET THE RECORD REFLECT THAT THE WITNESS ANSWERED IN THE 11:12:06 AFFIRMATIVE. YOU MAY BE SEATED. 11:12:08 YOU MAY BEGIN. >> THANK YOU, RANKING MEMBERS 11:12:15 AND MEMBERS OF THE COMMITTEE FOR THE OPPORTUNITY TO STAND BEFORE 11:12:19 YOU TODAY TO DISCUSS THE IMPORTANT ISSUE OF TOYOTA'S 11:12:22 RECENT SAFETY RECALLS. EVER SINCE I WAS SWORN IN AS 11:12:26 SECRETARY OF TRANSPORTATION 13 MONTHS AGO, I SAID THAT SAFETY 11:12:30 IS THE DEPARTMENT'S NUMBER ONE PRIORITY. 11:12:35 I WOULD LIKE TO THINK WE HAVE DEMONSTRATED THAT TIME AND TIME 11:12:37 AND TIME AGAIN WHEN THE TERRIBLE CRASH AT THE WASHINGTON METRO 11:12:42 SYSTEM CLAIMED NINE LIVES AND INJURED DOZENS OF OTHERS LAST 11:12:46 SUMMER, WE INTRODUCED LEGISLATION THAT I WOULD 11:12:49 ENCOURAGE ALL OF TO YOU COSPONSOR AND GIVE US OVERSIGHT 11:12:54 OVER TRANSIT. WE WERE PROHIBITED FROM HAVING 11:13:00 THAT RESPONSIBILITY. WHEN AIR FLIGHT 3407 CRASHED IN 11:13:04 BUFFALO, WE LEARNED RIGHT AWAY WHAT MANY OF THE PROBLEMS WERE 11:13:09 AND WE DID NOT WAIT ONE YEAR FOR THE NTSB TO CONCLUDE THE 11:13:16 INVESTIGATION AND WE BEGAN IMMEDIATELY TO ENHANCE AIRLINE 11:13:19 SAFETY AND PILOT TRAINING HOLDING 12 SAFETY SUMMITS AROUND 11:13:22 THE COUNTRY. SPRING THE FAA WILL ISSUE A RULE 11:13:29 TO COMBAT PILOT FATIGUE AND BEGAN TO OVERHAUL CERTIFICATION 11:13:35 QUALIFICATIONS. ONE OF THE HALL MARKS OF MY TIME 11:13:43 HAS BEEN WORK ON DISTRACTED DRIVING. 11:13:45 WITH ALL OF YOU WITH CELL PHONES AND BLACKBERRIES, I WANT YOU TO 11:13:48 KNOW I'M ON A RAMPAGE ABOUT PEOPLE TALKING AND TEXTING WHILE 11:13:53 DRIVING A PUS, TRAIN, OR PLANE AND AN AUTOMOBILE. 11:13:57 IT'S A MENACE TO SOCIETY AND WE RECENTLY EXERCISED AUTHORITY TO 11:14:02 BAN TRUCK DRIVERS FROM PARTICULARING WHILE DRIVING. 11:14:15 THE THREE RECALLS INVOLVING TOYOTA ARE AMONG THE LARGEST IN 11:14:20 AUTOMOBILE HISTORY AFFECTING MORE THAN SIX MILLION PEOPLE IN 11:14:22 THE COUNTRY. I WOULD LIKE TO SAY A WORD TO 11:14:25 CONSUMERS. IF YOU NOTICE THE GAS PEDAL OR 11:14:28 BRAKE IS NOT RESPONDING AS IT NORMALLY WOULD, CONTACT YOUR 11:14:32 TOYOTA DEALER NOW. RECENTLY THEY INVOLVED THREE 11:14:35 ISSUES. ONE, ACCELERATOR, PEDAL 11:14:39 ENTRAPMENT BY FLOOR MATS THAT LEAD TO UNCONTROLLED 11:14:42 ACCELERATION AT HIGH SPEEDS AND IT'S IMPORTANT TO TAKE YOUR 11:14:45 FLOOR MATS OUT OF THE DRIVER'S SIDE UNTIL YOUR CAR HAS BEEN 11:14:50 REPAIRED FOR THIS PROBLEM BY AN AUTHENTIC TOYOTA DEALER. 11:14:55 2nd, ACCELERATOR PEDALS STICKING OR RETURNING SLOWLY AFTER BEING 11:15:01 DEPRESSED IF THE PEDAL IS HARDER OR SLOWER THIS IS KNOWN AS A 11:15:12 STICKY PEDAL. THE PEDAL HAS THESE SYMPTOMS, 11:15:14 CONTACT THE TOYOTA DEALER IMMEDIATELY. 11:15:18 THE GAS PEDAL BECOMES STUCK FOR ANY REASON, PUT THE CAR IN 11:15:21 NEUTRAL AND BRING IT TO A STOP IN A SAFE PLACE AND CALL YOUR 11:15:26 DEALER. FINALLY WITH THE TOYOTA PRIUS 11:15:29 FOR MODEL YEAR 2010 AND THE LEXUS HS 250, IF YOU EXPERIENCE 11:15:35 A CHANGE IN YOUR CAR'S BRAKING PERFORMANCE, CONTACT YOUR TOYOTA 11:15:38 DEALER. I WANT EVERYONE TO KNOW THAT THE 11:15:43 NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION HAS THE MOST 11:15:49 EFFECTIVE DEFECT INVESTIGATION PROGRAM IN THE WORLD. 11:15:57 THEIR JOB IS TO INVESTIGATE COMPLAINTS AND LOOK FOR DEFECTS. 11:16:04 NITSA RECEIVES 30,000 COMPLAINTS FROM CONSUMERS AND TAKE EVERY 11:16:08 ONE SERIOUSLY. WE LOOK AT EVERY ONE. 11:16:11 WE DON'T SET ANY OF THEM ASIDE. WE REVIEW THEM QUICKLY TO MAKE 11:16:18 SURE THAT IF THERE IS A SERIOUS ISSUE, WE WILL LOOK AT IT. 11:16:29 THEY RESULTED IN 524 RECALLS INVOLVING 23 MILLION VEHICLES. 11:16:38 # THE INVESTIGATIONS OPENED, THERE 11:16:54 34 OPENING DEFECT INVESTIGATIONS. 11:16:58 FIVE OF WHICH INVOLVE TOYOTA. EVERY STEP OF THE WAY, OFFICIALS 11:17:01 HAVE PUSHED TO TOYOTA TO TAKE CORRECTIVE ACTION SO THAT 11:17:04 CONSUMERS WILL BE SAFE. UNHAPPY WITH TOYOTA'S 11:17:08 RESPONSIVENESS TO OUR SAFETY CONCERNS, THE ACTING 11:17:14 ADMINISTRATOR AND TWO ASSOCIATES FLEW TO JAPAN IN DECEMBER OF' 09 11:17:20 TO CLARIFY FOR MANAGEMENT WHAT THE LEGAL OBLIGATIONS ARE TO 11:17:25 SAFETY DEFECTS IN VEHICLES SOLD HERE IN AMERICA. 11:17:28 IN JANUARY OUR NEW ADMINISTRATOR THEY TOLD IN NO UNCERTAIN TERMS 11:17:42 WE EXPECT PROMPT ACTION FOLLOWING DISCLOSURE OF THE 11:17:45 STICK PEDAL PROBLEM. THEY ANNOUNCED THAT RECALL TWO 11:17:48 DAYS LATER. I HAVE BEEN ON THE PHONE WITH 11:17:52 MR. TOYOTA FROM HERE TO JAPAN AND I'M SO PLEASED HE ACCEPTED 11:17:57 THE INVITATION TO APPEAR BEFORE THE COMMITTEE. 11:18:02 WITH POTENTIAL DEFECTS ON THE ROAD, THEY PRESSED HARD TO 11:18:06 EXPEDITE THESE. IF THEY HAD OPENED A FORMAL 11:18:10 INVESTIGATION AND TOYOTA HAD RESISTED A RECALL, THAT WOULD 11:18:13 HAVE CONSUMED AN ENORMOUS AMOUNT OF TIME EXTENDING THE PERIOD IN 11:18:18 WHICH OWNERS ARE AT RISK. BY ENGAGING TOYOTA DIRECTLY AND 11:18:22 PERSUADING THE COMPANY TO TAKE ACTION, THE AGENCY AVOIDED A 11:18:26 LENGTHY INVESTIGATION THAT WOULD HAVE DELAYED FIXES FOR A YEAR OR 11:18:30 MORE. LAST WEEK I ANNOUNCED WE ARE 11:18:32 INVESTIGATING WHETHER TOYOTA ACTED QUICKLY ENOUGH IN 11:18:35 REPORTING THE DEFECTS AS WELL AS WHETHER THEY TOOK APPROPRIATE 11:18:39 ACTION TO PROTECT CONSUMERS. WE ASKED THEM TO TURN OVER A 11:18:43 WIDE RANGE OF THE DOCUMENTS THAT WILL SHOW US WHEN AND HOW THEY 11:18:46 LEARNED ABOUT THE SAFETY PROBLEMS. 11:18:50 NH TSA WILL ENSURE THEY WILL DO ALL THEY PROMISED TO MAKE 11:18:54 VEHICLES AND WE WILL CONTINUE TO INVESTIGATE ALL POSSIBLE CAUSES. 11:18:59 WHILE THE RECALLS ARE IMPORTANT STEPS IN THAT DIRECTION, WE 11:19:02 DON'T MAINTAIN THAT THEY ANSWER EVERY QUESTION. 11:19:05 SOME BELIEVE THAT ELECTROMAT MAGNETIC INTERFERENCE HAS A 11:19:13 DANGEROUS EFFECT ON THESE VEHICLES, ALTHOUGH WE ARE NOT 11:19:17 AWARE OF ANY INCIDENTS PROVEN TO CAUSE SUCH INTERFERENCE, NH TSA 11:19:22 IS DOING A THOROUGH REVIEW. WE WILL GET IN THE WEEDS ON 11:19:26 THIS. WE WILL DO EVERYTHING WE CAN TO 11:19:29 FIND OUT IF ELECTRONICS ARE A PART OF THE PROBLEM. 11:19:34 IF WE FIND A PROBLEM, WE WILL MAKE SURE IT'S RESOLVED. 11:19:39 I HAVE BEEN ASSURES BY MR. TOYOTA THAT IT TAKES U.S. 11:19:45 SAFETY CONCERNS VERY SERIOUSLY AND THAT SAFETY IS THE COMPANY'S 11:19:50 TOP PRIORITY. WE WILL HOLD HIM TO THAT. 11:19:53 FINALLY, I WANT TO REMIND EVERYONE, THERE IS A REASON WE 11:19:57 INVESTIGATE SAFETY DEFECTS AND PUSH AUTO MAKERS TO DO THE RIGHT 11:20:00 THING. I LISTENED TO THE 911 TAPE OF 11:20:03 THE SAYLOR FAMILY'S HARROWING LAST MOMENTS. 11:20:09 A HIGHWAY PATROL DIED WITH HIS WIFE AND DAUGHTER AND HIS 11:20:12 BROTHER-IN-LAW WHEN THE ACCELERATOR GOT STUCK IN THE 11:20:15 LEXUS THEY WERE DRIVING CRASHED AT MORE THAN 120 MILES PER HOUR. 11:20:19 LAST EVENING AFTER I FINISHED MY TESTIMONY BEFORE THE ENERGY AND 11:20:24 COMMERCE COMMITTEE, I MET WITH THE FAMILY TO OFFER OUR SYMPATHY 11:20:28 AND ANY ASSISTANCE WE CAN GIVE TO THEM. 11:20:32 IT WAS A HORRIBLE TRAGEDY AND I HOPE NO OTHER FAMILY HAS TO 11:20:37 ENYOU DUR THAT. MR. CHAIRMAN, LET ME CONCLUDE BY 11:20:41 SAYING THIS. I WAS SWORN IN ON JANUARY 23rd 11:20:44 OF '09. I TRAVELLED TO 36 STATES IN 80 11:20:52 CITIES. EVERYWHERE I HAVE GONE I TALKED 11:20:56 ABOUT SAFETY. THAT HAS TO BE OUR NUMBER ONE 11:20:59 PRIORITY WHETHER IT'S IN TRAINS, PLANES, OR AUTOMOBILES. 11:21:03 YOU LOOK AT ANY STATEMENT I HAVE MADE OR SPEECH I HAVE GIVEN, 11:21:07 THERE IS ALWAYS SOMETHING ABOUT SAFETY IN IT. 11:21:11 WE WILL NOT SLEEP AT DOT AND WORK 24-7 AT NH TSA THAT EVERY 11:21:20 TOYOTA IS SAFE TO DRIVE. WE WILL CONTINUE TO MAKE SAFETY 11:21:24 OUR NUMBER ONE PRIORITY AT DOT AND AT NH TSA. 11:21:29 I LOOK FORWARD TO YOUR QUESTIONS. 11:21:30 >> THANK YOU VERY MUCH. SAFETY IS SO IMPORTANT. 11:21:38 LET ME RAISE A COUPLE OF QUESTIONS WITH YOU QUICKLY. 11:21:42 THE COMMITTEE REVIEWED THOUSANDS OF COMPLAINTS SENT TO NH TSA 11:21:51 REGARDING TOYOTA VEHICLES. BEFORE THE CRASH THAT KILLED 11:21:54 MEMBERS OF THE SAYLOR FAMILY IN AUGUST OF 2 THOUSAND 9, THERE 11:22:00 WERE ALMOST 2,000 COMPLAINTS AT A TIME OF THE TOYOTA'S FLOOR MAT 11:22:06 RECALL IN 2007. THE AGENCY HAD RECEIVED MORE 11:22:10 THAN 1,300 COMPLAINTS. WHY DID IT TAKE THEM SO LONG TO 11:22:18 ACT? >> MR. CHAIRMAN, I WOULD SAY 11:22:21 THIS. I HAVE BEEN IN THE JOB MORE THAN 11:22:24 A YEAR. PRIOR TO MY TIME WHICH WOULD 11:22:28 HAVE BEEN PRIOR TO JANUARY 23rd OF '09, IF THERE ISSUES I CAN'T 11:22:35 ANSWER, I WILL GET BACK TO YOU FOR THE RECORD. 11:22:37 I WILL TELL YOU THIS, 30,000 COMPLAINTS COME TO NH TSA EVERY 11:22:42 YEAR AND WE LOOK AT EVERY ONE OF THEM. 11:22:46 WE THINK EVERY ONE IS IMPORTANT. SOME COME FROM PEOPLE WHO ARE 11:22:50 DRIVING CARS AND SOME COME FROM THE INDUSTRY. 11:22:52 WE LOOK AT WHAT'S GOING ON FROM STAKEHOLDERS AND PEOPLE IN THE 11:22:59 AUTOMOBILE BUSINESS. SOMETIMES THEY FILE COMPLAINTS 11:23:02 WITH US. THEN WHEN WE SEE A PATTERN, WE 11:23:06 WILL DO AN INVESTIGATION OR WE WILL LOOK AT IT. 11:23:09 IF OUR INVESTIGATION SHOWS THERE NEEDS TO BE A RECALL, IT WILL BE 11:23:16 DONE. THAT HAS BEEN THE WORK OF NH 11:23:20 TSA. WITH RESPECT TO YOUR SPECIFIC 11:23:23 QUESTION DURING THAT TIME PERIOD, WHAT I WOULD LIKE TO DO 11:23:26 IS PUT IT ON THE RECORD AFTER I REALLY CAN GET THE FACTS FOR 11:23:29 YOU. >> THANK YOU VERY MUCH. 11:23:40 AGAIN, I KNOW YOU RECOGNIZE HOW IMPORTANT SAFETY IS. 11:23:48 DO YOU THINK IT'S TO DRIVE A TOYOTA TODAY? 11:23:51 >> I WILL SAY THIS. IF PEOPLE CHECK OUR WEBSITE WE 11:23:57 HAVE LISTED EVERY TOYOTA THAT IS UP FOR RECALL. 11:24:03 I WANT ANYBODY THAT HAS ONE OF THOSE CARS TO TAKE IT TO THEIR 11:24:07 DEALER AND TO MAKE SURE THAT IT GETS FIXED. 11:24:19 WE AGAIN ARE GOING TO WORK 24-7 AND WE ARE GOING TO CONTINUE 11:24:26 UNTIL EVERY TOYOTA IS SAFE FOR THEIR CUSTOMERS TO DRIVE. 11:24:34 >> THANK YOU FOR YOUR COMMIT AND DEDICATION IN THIS REGARD. 11:24:37 I YIELD TO THE RANKING MEMBER. >> THIS IS ON, MR. ISSA. 11:24:44 >> IT DROPPED OFF ALL OF A SUDDEN. 11:24:46 IT HAS NOTHING TO DO WITH YOU, I'M SURE. 11:24:49 MAYBE THEY CAN GIVE ME THE OTHER ONE. 11:24:50 >> SWITCH TO THE OTHER MIKE. >> VERY PRESIDENTIAL. 11:25:08 I WILL PICK UP WHERE THE CHAIRMAN LEFT OFF. 11:25:11 SOME COMPANIES INCLUDING TOYOTA, YOU CAN GO TO THE WEBSITE AND 11:25:15 PUNCH IN THE ONE PIECE OF INFORMATION WITH ANYONE IN 11:25:18 POSSESSION OF A CAR CAN SEE. AT YOUR WEBSITE, YOU HAVE TO PUT 11:25:22 IN MAKE AND MODEL. YOU HAVE TO KNOW YOUR TRIM 11:25:26 LEVEL, ET CETERA, ETC. CAN YOU COMMIT TO US THAT IN THE 11:25:30 FORESEEABLE FUTURE, THE DEPARTMENT OF TRANSPORTATION 11:25:33 COULD AND IF YOU AGREE, SHOULD HAVE EVERY AUTOMOBILE SOLD IN 11:25:39 AMERICA, A VIN NUMBER ON FILE SO IF SOMEBODY PUNCHES IN THE 11:25:43 NUMBER, THEY CAN SEE EVERY RECALL AND EVERY PIECE OF SAFETY 11:25:46 INFORMATION THAT YOU KNOW OF THAT NEEDS TO BE APPLIED TO THAT 11:25:50 VEHICLE? >> GIVEN THE RIGHT AMOUNT OF 11:25:53 TIME, I WILL COMMIT TO YOU THAT WE SHOULD MAKE THAT INFORMATION 11:25:58 AVAILABLE. IN THE SIMPLEST POSSIBLE WAY FOR 11:26:02 EVEN PEOPLE WHO ARE MAYBE DON'T HAVE ACCESS TO A COMPUTER OR 11:26:06 WHATEVER. WE SHOULD MAKE IT AVAILABLE TO 11:26:08 PEOPLE. >> I APPRECIATE THAT AND A LOT 11:26:10 OF MY QUESTIONS FROM OPENING REMARKS ARE ABOUT WHAT DO WE DO 11:26:15 PROACTIVELY FOR THE FUTURE. WE WILL ALL HAVE QUESTIONS FOR 11:26:18 YOU AND NH TSA AND FOLLOW-UP QUESTIONS ABOUT THE PAST, BUT 11:26:23 LET ME GO TO ANOTHER ONE. CURRENTLY NH TSA AS I UNDERSTAND 11:26:30 IT HAS 41, 42, 49 IN THE HIGH YEAR THOUSAND INQUIRIES OR 11:26:36 COMPLAINTS. THE AUTO COMPANIES HAVE THEIRS. 11:26:39 IF AN AUTO COMPANY REACHES A THRESHOLD THEY HAVE A 11:26:42 REQUIREMENT TO SEND THAT IN THE U.S. 11:26:44 IF A COMPANY HAS A RECALL IN ANOTHER COUNTRY, THEY HAVE AN 11:26:56 OBLIGATION TO INFORM NH TSA. YOU ARE FAMILIAR ABOUT THE OPEN 11:27:01 SOURCE SYSTEM IS. CAN YOU ME TODAY THAT THERE IS 11:27:06 ANY TECHNOLOGICAL REASON OR COMMON SENSE REASON THAT IN FACT 11:27:12 WE SHOULD NOT, THE UNITED STATES GOVERNMENT H TSA SHOULD NOT SEE 11:27:19 ALL CLAIMS FROM ALL OF THE FIRST WORLD PARTNERS AND OBVIOUSLY TO 11:27:23 BE ARRANGED AND ALL THE COLLATERAL MATERIAL FROM THE 11:27:26 PEOPLE WHO WANT TO SELL VEHICLES IN THE COUNTRY. 11:27:29 MEANING, IS THERE A REASON YOU HAVE TO WAIT UNTIL THERE IS A 11:27:33 RECALL TO GET INFORMATION? GREAT BRITAIN CAN HAVE A RECALL, 11:27:37 BUT THEY HAD A SIMILAR STICKY PEDAL THEY DIDN'T SEE AS 11:27:41 SIGNIFICANT BECAUSE THEY THOUGHT IT ONLY HAPPENED THERE ON RIGHT 11:27:44 HAND DRIVE CARS. YET WHEN WE WERE GETTING A SMALL 11:27:50 AMOUNT, HAD HE HAD THAT INFORMATION LIKE ANY OPEN SOURCE 11:27:56 BRINGING TOGETHER OF INFORMATION, AN AGENCY OF THE 11:27:59 GOVERNMENT WOULD HAVE BEEN ABLE TO HAVE AN ALERT THAT WOULD HAVE 11:28:02 BEEN SENT TO THE AUTO COMPANY FOR THEIR ATTENTION AND 11:28:05 RESPONSE. DO YOU SEE ANY REASON THAT'S NOT 11:28:08 SOMETHING THAT SHOULD BE PART OF A GREAT ORGANIZATION RATHER THAN 11:28:13 A GOOD ONE? >> I AGREE IT SHOULD BE PART OF 11:28:16 IT. WE BELIEVE IN TRANSPARENCY. 11:28:19 I BELIEVE INFORMATION CAN BE POWERFUL. 11:28:20 THE MORE THE BETTER. >> THE TOYOTA BLADE SOLD IN 11:28:35 JAPAN THAT HAD A PEDAL SIMILAR TO THIS EVEN THOUGH IT WAS NOT 11:28:39 AN AUTOMOBILE IN WHICH THEY SHORTENED THE PEDAL BECAUSE OF 11:28:43 ENTRAPMENT. ARE YOU FAMILIAR WITH THAT? 11:28:45 >> I AM NOT FAMILIAR WITH THAT. >> I WOULD APPRECIATE IT IF YOU 11:28:51 WOULD RESPOND FOR THE RECORD OF HOW IN THE FUTURE A SIMILAR 11:28:55 AUTOMOBILE IN ANOTHER COUNTRY THAT DOES HAVE A CHANGE CAN HAVE 11:28:59 A CHANGE CONSISTENT IN THE U.S. AS I SAID IN OPENING REMARKS 11:29:05 WEEK TOOK SHORTCUTS WITH NH TSA'S ACQUIESCENCE AND 11:29:11 AWARENESS, WE TOOK A SHORTCUT ON THE MAP WHILE IN JAPAN THEY 11:29:16 REDUCE AND INCREASED THE CLEARANCE ON THE PEDAL. 11:29:20 THE DIFFERENCE IS THE DIFFERENCE THIS SAN DIEGO OF THAT FAMILY 11:29:22 STILL BEING ALIVE. THAT'S PROBABLY THE MOST 11:29:27 IMPORTANT QUESTION I HAVE FOR YOU AND CONSISTENCY AND 11:29:36 DISSIMILAR PARTS AROUND THE WORLD. 11:29:40 IT IS WITHIN EXISTING LAW TO BRING ABOUT A REAL CHANGE SO 11:29:44 THIS WILL NOT HAPPEN AGAIN? >> I TAKE YOUR POINT AND IT'S A 11:29:48 GOOD POINT. YOU HAVE MY COMMITMENT. 11:29:50 >> I APPRECIATE THAT. IF AT SOME TIME IN THE FUTURE 11:29:54 YOU SEE THE POTENTIAL NEED FOR MORE AUTHORITY OR MORE SPECIFIC 11:29:59 LEGISLATION THAT YOU WOULD ALSO COME BACK TO US? 11:30:02 >> ABSOLUTELY. >> THANK YOU AND THANK YOU 11:30:04 AGAIN. I YIELD BACK. 11:30:05 >> THANK YOU THE GENTLEMEN FROM CALIFORNIA. 11:30:07 I YIELD FIVE MINUTES TO THE GENTLEMEN FROM PENNSYLVANIA. 11:30:20 >> I ASSUME THIS IS GOING TO BE MORE UPLIFTING SESSIONS THAT YOU 11:30:28 HAD SINCE IN OFFICE. I THINK THIS IS PROBABLY THE 11:30:32 GREATEST ATTENDANCE I HAVE SEEN IN THE HALL WAYS AND OF THE 11:30:35 PRESS. >> I WOULD AGREE. 11:30:38 >> OBVIOUSLY WE STRUCK A NERVE. THIS COMMITTEE AND THE 11:30:42 OCCURRENCE THAT HAPPENED IN CALIFORNIA. 11:30:43 I WANTED TO TAKE A MOMENT TO CONGRATULATE YOU. 11:30:57 EXACTLY WHAT THIS COMMITTEE AND THE OFFICE EXPECTED YOU TO DO. 11:31:01 EARLIER I WAS WATCHING THE RANKING MEMBER ON CNBC AND HE 11:31:09 MADE AN INTERESTING PROPOSAL TO WHAT HE DISCUSSED WITH YOU 11:31:14 TODAY. MAYBE IF THAT PROPOSAL COULD BE 11:31:18 ENCAPSULATED WITH GREATER AUTHORITY, BUT EVEN ABOVE AND 11:31:20 BEYOND THE AUTO INDUSTRY THAT WE FIND A WAY SINCE WE ARE IN A 11:31:27 GLOBAL MARKET PLACE FIND THIS AND FOR AVAILABILITY TO NOT ONLY 11:31:37 THE CITIZENS OF THE UNITED STATES, BUT CITIZENS OF THE 11:31:39 WORLD. I COMMENTED TO THE STAFF AFTER I 11:31:42 SAW THIS, BUT I LOVE PORTUGUESE SARDINES. 11:31:52 IF SOMEONE DIED FROM POT LIMP, I HAVE NO WAY IN THE WORLD OF 11:31:55 KNOWING WHERE TO GO OR WHO TO INFORM. 11:31:59 IT'S TIME NOW THAT WE THINK ABOUT THE FACT THAT WE ARE NOT 11:32:05 IN A IF ANYTHING PRODUCTIVE CAN COME OUT OF THE HEARING, IT'S 11:32:16 THAT WE TAKE THIS POSITIVE ACTION. 11:32:20 I WILL JOIN YOU IN THE SPONSORSHIP OF AUTHORIZATION FOR 11:32:23 THE AUTO INDUSTRY AND ALL INTERNATIONAL INDUSTRIES TO GET 11:32:26 THIS TYPE OF REPOSITORY INFORMATION MADE AVAILABLE AND 11:32:30 UTILIZE THE INTELLIGENCE NETWORK AND INFORMATION TO THIS COUNTRY 11:32:34 TO COMMERCIALIZING IT, IF WE WILL. 11:32:37 TO YOU, MR. SECRETARY, THIS HAS BEEN A TRAGIC EXPERIENCE I THINK 11:32:47 FOR TOYOTA. I'M SURE IF I WERE A STOCKHOLDER 11:32:55 OR JAPANESE THAT THE PRIDE THEY HAVE WITH THAT COMPANY IN THEIR 11:32:59 50 YEARS OF EXPERIENCE, THIS IS SOMETHING NO ONE WANTED TO SEE 11:33:03 HAPPEN. WHAT WE HAVE TO DO IS HANDLE 11:33:07 THIS SITUATION WITH A FORM OF CLASS, IF YOU WILL. 11:33:13 I HOPE WE DON'T UTILIZE IT TO BEAT UP OR E OR OVEREXEMPTION 11:33:21 SIZE OR EXACERBATE FEELINGS THAT MAY OCCUR BETWEEN THE TWO 11:33:25 NATIONS. >> WE HAVEN'T DONE THAT. 11:33:27 WE HAVE ALL DONE IT. ALL OF YOU FEEL THIS WAY. 11:33:29 WE HAVE DONE IT UNDER THE UMBRELLA OF SAFETY FOR PEOPLE 11:33:32 WHO OWN TOYOTAS. >> THAT'S A GOOD MESSAGE. 11:33:36 IF WE CAN PUT IT OUT THERE, WE WANT TO DRIVE FROM THE THEORY 11:33:39 AND THE FACT IS THE BEST PURPOSES IN THE WORLD TO 11:33:45 ACCOMPLISH THINGS IN THE FUTURE SO THAT IT DOESN'T OR WON'T 11:33:51 HAPPEN AGAIN. WE DON'T WANT TO EXAGGERATE 11:33:54 SITUATIONS THAT GO BEYOND REASONABLENESS. 11:33:57 I THANK YOU FOR YOUR TESTIMONY AND THANK YOU FOR YOUR ATTEND 11:34:00 ARNS AND I PLEDGE TO YOUING TO W THE RANKING MEMBER THAT WE WILL 11:34:05 TAKE SUCH ACTION AS POSSIBLE TO SEE A POSITIVE RESULT. 11:34:08 >> WE WILL WORK WITH YOU ON THAT. 11:34:10 >> THANK YOU VERY MUCH. I RECOGNIZE THE GENTLEMEN FROM 11:34:13 INDIANA, MR. BURTON, FORMER CHAIR OF THIS COMMITTEE. 11:34:16 >> LET ME PREFACE REMARKS BY WELCOMING YOU HERE RAY AND 11:34:19 MR. SECRETARY. WE HAVE BEEN FRIENDS FOR A LONG, 11:34:22 LONG TIME AND KNOW YOU TO BE AN HONORABLE MAN. 11:34:26 THE QUESTIONS HAVE NOTHING TO DO WITH QUESTIONING YOUR INTEGRITY. 11:34:29 I WANT YOU TO KNOW THAT. THERE WAS AN INVITATION MADE TO 11:34:35 MR. STRICKLAND TO TESTIFY AND THERE WAS AN ARTICLE IN THE "LOS 11:34:38 ANGELES TIMES" TODAY THAT INDICATED THAT BECAUSE OF YOUR 11:34:46 REQUEST, MR. STRICKLAND WAS ASKED NOT TO TESTIFY. 11:34:48 IS THERE A REASON FOR THAT? >> LOOK, MR. BURTON, 11:34:52 MR. STRICKLAND HAS BEEN ON THE JOB 40 DAYS. 11:34:58 I HAVE BEEN ON THE JOB 13 MONTHS. 11:34:59 I WILL NOT HAVE THE ADMINISTRATOR APPEAR AND I'M 11:35:05 TAKING RESPONSIBILITY FOR THIS. AS I SAID IN MY TESTIMONY, 11:35:08 SAFETY IS NUMBER ONE. I'M GOING TO BE ACCOUNTABLE. 11:35:11 IF SOMEBODY WANTS TO CRITICIZE NH TSA OR THE DEPARTMENT, I WILL 11:35:18 BE HANDLE. THAT'S MY JOB. 11:35:19 I WILL NOT DUCK IT AND GIVE IT TO SOMEBODY WHO HAS OLDSMOBILE 11:35:23 BEEN ON THE JOB 40 DAYS. WHEN I TALK TO MR. TOWNS AND 11:35:27 MR. ISSA, IT WAS CLEAR THEY WANTED ME TO COME AND I WANTED 11:35:31 TO COME WHEN WE ORIGINALLY TALKED. 11:35:34 I DON'T KNOW HOW THAT CONFUSION OCCURRED. 11:35:36 THAT'S THE REASON FOR IT. >> DON'T GET MAD AT ME, RAY. 11:35:42 THAT WAS THE "LOS ANGELES TIMES". 11:35:46 # >> JUST BECAUSE I RAISED A 11:35:58 DECIBEL IN MY VOICE, DOESN'T MEAN I'M MAD. 11:36:01 >> DON'T GIVE ME THAT STUFF. THERE IS A QUESTION ABOUT 11:36:09 WHETHER OR NOT THERE MIGHT BE A KIND OF A SWEETHEART ARRANGEMENT 11:36:12 WITH THE PEOPLE WHO PRECEDED YOU WORKING AT NH TSA. 11:36:17 THERE A NUMBER OF PEOPLE, AT LEAST TWO EMPLOYEES WHO NOW WORK 11:36:22 FOR TOYOTA. THEY ARE ON THE TOYOTA PAYROLL. 11:36:28 I HAVE THEIR NAMES HERE. ARE YOU FAMILIAR WITH THAT AT 11:36:31 ALL? >> I READ REPORTS THAT WAS AND 11:36:33 WE LOOKED INTO IT. WHAT THE LAW REQUIRES IS THAT IF 11:36:38 YOU HAVE BEEN AN EMPLOYEE AT D.O.T. AND YOU GO TO WORK FOR A 11:36:46 COMPANY THAT DOES WORK WITH D.O.T., YOU CANNOT COMMUNICATE 11:36:53 OR PARTICIPATE IN THE WORK THAT YOU DID WITH THIS COMPANY. 11:36:57 IF YOU GO TO WORK FOR A COMPANY, IF YOU GO TO WORK FOR TOYOTA, 11:37:02 YOU CANNOT COMMUNICATE ON ISSUES YOU DEALT WITH THE D.O.T. 11:37:06 FOR EXAMPLE, IF THOSE EMPLOYEES WORKED AT NH TSA WHICH THEY DID, 11:37:12 THEY CAN'T COME BACK AND BE TALKING ABOUT THESE THINGS. 11:37:15 THEY CAN TALK ABOUT A HIGHWAY PROJECT OR SOMETHING LIKE THAT I 11:37:21 SUPPOSE, BUT HERE'S MY PLEDGE TO ALL OF YOU. 11:37:25 IF ANYBODY KNOWS THERE IS VIOLATIONS, LET ME KNOW. 11:37:28 I WILL REFER TO THE IG. THERE WILL BE AN INVESTIGATION. 11:37:36 THERE HAS BEEN NO MORE HIGHER STANDARDS SET FOR ETHICS THAN 11:37:39 THIS ADMINISTRATION. AT THE FIRST CABINET MEETING, 11:37:43 THE PRESIDENT MADE IT CLEAR. I DON'T WANT ETHICAL PROBLEMS 11:37:47 WITH ANYBODY. >> THIS PRECEDED THE YOU, BUT 11:37:53 CHRISTOPHER NOW TOYOTA'S ASSISTANT MANAGER OF TECHNICAL 11:37:56 AND REGULATORY AFFAIRS DID WORK FOR THE AGENCY AND ACCORDING TO 11:38:01 GENERAL MOTORS, FORD, AND CHRYSLER, THEY DON'T HAVE 11:38:05 ANYBODY WHO FORMALLY WORKED FOR NH TSA WHO WORKED FOR THEM IN 11:38:10 THOSE CAPACITIES. YOU ARE SAYING THESE 11:38:12 GENTLEMEN -- >> THEY CAN WORK FOR TOYOTA, BUT 11:38:16 THEY CANNOT COME BACK AND TALK ABOUT ISSUES THEY WORKED ON. 11:38:19 THEY CAN'T DO THAT. THEY CAN TALK TO PEOPLE IN OTHER 11:38:24 MODES. FAA OR OTHER MODES. 11:38:26 THEY CANNOT COME BACK AND TALK TO OUR FOLKS ISSUES -- 11:38:31 >> THE ONE THING I WOULD SUGGEST IS THAT THE APPEARANCE IS ONE OF 11:38:34 THE THINGS THAT RIGHT NOW I THINK THE PUBLIC IS CONCERNED 11:38:37 ABOUT. A COUPLE OF PEOPLE THAT WORK AT 11:38:40 NH TSA IN A PUBLIC RELATIONS POSITION THEY CAN TALK TO PEOPLE 11:38:46 AT NH TSA AND THE APPEARANCE MAY BE THAT THEY ARE INFLUENCING 11:38:52 DECISION-MAKING GOING ON. >> I AGREE WITH YOU ON THIS, 11:38:55 MR. BURTON. I THINK THIS LAW PROBABLY SHOULD 11:38:57 BE TIGHTENED UP. I REALLY DO. 11:39:00 I AGREE WITH YOU. PERCEPTION IS REALITY. 11:39:02 ANYBODY THAT HAS BEEN IN POLITICS KNOWS THAT. 11:39:06 I TAKE YOUR POINT ON THIS. >> THANK YOU VERY MUCH AND I 11:39:10 STILL LOVE YOU, RAY. >> THANK YOU. 11:39:16 >> THE GENTLEMEN YIELDS BACK? I NOW RECOGNIZE THE GENTLEMEN 11:39:20 FROM MARYLAND. REPRESENTATIVE CUMMINGS. 11:39:23 >> THANK YOU VERY MUCH, MR. CHAIRMAN AND MR. LA HOOD. 11:39:27 IT'S GOOD TO HAVE YOU HERE. ONE OF THE THINGS THAT WE FIND 11:39:33 OURSELVES IN QUITE A DEELEMENTSA HERE. 11:39:36 ON THE ONE HAND WE WANT TO BE CAREFUL ABOUT WHAT WE ARE DOING 11:39:44 HERE. WE DO HAVE ONE OF THE MAIN 11:39:47 TRADING PARTNERS, JAPAN INVOLVED. 11:39:51 WE HAVE A SAFETY OF CITIZENS. MANY CONSTITUENTS WHO SPEND 11:39:58 THOUSANDS UPON THOUSANDS OF DOLLARS TO BUY AN AUTOMOBILE. 11:40:03 THEY HAVE A RIGHT TO EXPECT TO BE SAFE. 11:40:09 TO THAT END THERE WAS VERY TELLING TESTIMONY BEFORE THE 11:40:16 COMMERCE COMMITTEE. WE KNOW YOU WERE THERE AND HEARD 11:40:18 ABOUT IT WHERE THE PRESIDENT OF TOYOTA SALES USA WHEN ASKED 11:40:27 ABOUT THE ISSUE WHETHER IT'S A STICKY PEDAL OR THE MAT PROBLEM, 11:40:33 WHETHER RECALLS IN REGARD TO THOSE ISSUES WOULD SOLVE THE 11:40:38 PROBLEM, HE WAS NOT SURE. ARE YOU FAMILIAR? 11:40:41 >> YES, SIR. I WAS THERE AND I HEARD HIS 11:40:42 TESTIMONY. >> AS I SAT HERE AND LISTENED TO 11:40:47 YOU AND YOU TALKED ABOUT -- YOU SAID GO TO THE WEBSITE AND YOU 11:40:52 SAID IF THEY WERE PEOPLE HAVING CERTAIN PROBLEMS, THEY SHOULD GO 11:40:56 TO THE DEALERSHIP. THEN I HEARD YOU IN ANSWER TO 11:41:00 THE CHAIRMAN'S QUESTION -- I DON'T THINK YOU EVER REALLY 11:41:06 ANSWERED THE QUESTION BECAUSE HE ASKED YOU WHETHER OR NOT YOU 11:41:09 CONSIDERED A TOYOTA TO BE SAFE. YOU ARE OUR SAFETY GUIDE JUST AS 11:41:13 YOU JUST SAID. YOU SAID IT, I DIDN'T. 11:41:15 I BELIEVE YOU ARE CONCERNED ABOUT SAFETY. 11:41:18 THE QUESTION STILL BECOMES FOR OUR CONSTITUENTS, YOU AS OUR 11:41:22 SAFETY GUIDE. >> LET ME ANSWER YOU VERY 11:41:26 DIRECTLY. FOR THOSE CARS THAT ARE LISTED 11:41:27 ON OUR WEBSITE, D.O.T..KOF FOR RECALL TO GO BACK, THOSE ARE NOT 11:41:34 SAFE. WE DETERMINED THEY ARE NOT SAFE. 11:41:39 >> ALL RIGHT. >> WE BELIEVE WE NEED TO LOOK AT 11:41:41 THE ELECTRONICS IN THESE CARS. BECAUSE PEOPLE HAVE TOLD US THEY 11:41:46 BELIEVE THERE IS AN ISSUE AND WE ARE GOING TO DO THAT. 11:41:48 WE WILL HAVE A COMPLETE REVIEWO THE ELECTRONICS. 11:41:52 FOR NOW, ANY CAR THAT'S ON THE WEBSITE NEEDS TO GO BACK TO THE 11:41:57 DEALER TO BE FIXED WOMEN DETERMINED THOSE ARE NOT SAFE 11:41:59 BECAUSE OF A FLOOR MAT PROBLEM, BECAUSE OF A STICKY PEDAL. 11:42:05 >> IT'S THE AND THAT I'M WONDERING ABOUT. 11:42:08 IN OTHER WORDS, YOU JUST SAID YOU DIDN'T CONSIDER THOSE SAFE, 11:42:11 BUT AGAIN WE HAD THEM SAYING YESTERDAY THAT -- I'M NOT TRYING 11:42:17 TO ATTACK YOU. >> I'M NOT OFFENDED BY ANY OF 11:42:20 THIS. COME ON. 11:42:21 I'M NOT. >> WE NEED TO BE CLEAR. 11:42:23 WE HAVE PEOPLE WHO ARE DRIVING THESE CARS EVERY DAY. 11:42:27 I'M WONDERING, DO YOU BELIEVE THAT -- IT SOUNDS LIKE YOU DO, 11:42:32 THERE IS SOMETHING BEYOND JUST THOSE TWO THINGS AS MR. LENTS OF 11:42:38 TOYOTA USA TESTIFIED YESTERDAY. ONE MORE QUESTION. 11:42:45 IF THOSE AUTOMOBILES ARE NOT ON THE RECALL LIST BECAUSE THAT'S 11:42:51 WHAT I'M GOING TO WONDER ABOUT. WHAT ARE THEY SUPPOSED TO DO? 11:42:54 >> THERE PEOPLE WHO BELIEVE THAT THERE ELECTRONICS PROBLEMS WITH 11:42:59 TOYOTA. THAT'S THE REASON WE ARE GOING 11:43:00 TO DO A REVIEW. FOR NOW, WE DON'T HAVE EVIDENCE 11:43:07 RIGHT NOW TO SAY CONCLUSIVELY THAT THERE THESE ELECTRONICS 11:43:11 PROBLEM WHERE IS WE WILL GET INTO IT AND GET IN THE WEEDS. 11:43:14 THERE WERE PEOPLE IN THE COMMITTEE THAT HAD SOME STUDIES 11:43:18 THAT SHOWED THAT THERE WERE ELECTRONICS PROBLEMS. 11:43:22 WE WANT THAT INFORMATION. THE ONLY THING I WILL SAY TO THE 11:43:27 TOYOTA DRIVERS F YOUR CAR IS LISTED, TAKE IT TO THE DEALER 11:43:30 AND GET IT FIXED. PLEASE KNOW THAT WE ARE GOING TO 11:43:33 LOOK AT OTHER ISSUES BECAUSE WE HAD COMPLAINTS ABOUT THE 11:43:37 ELECTRONICS. >> DO WE HAVE ENOUGH PERSONNEL 11:43:39 TO DO THAT? >> YES, SIR. 11:43:41 I WILL TELL YOU THIS. THE PRESIDENT IN HIS BUDGET 11:43:46 PROPOSED 66 NEW EMPLOYEES FOR NH TSA. 11:43:50 WE HAVE 125 ENGINEERS AND WE DO HAVE ELECTRICAL ENGINEERS ALSO. 11:43:56 THE ANSWER IS THE PRESIDENT HAS PROPOSED IN OUR BUDGET 66 NEW 11:44:02 EMPLOYEES FOR NTHSA. >> WHEN YOU TALKED ABOUT LOOKING 11:44:06 AT PROBLEMS, YOU SAID WHEN YOU SEE A PATTERN, CAN YOU TELL US 11:44:09 WHAT A PATTERN IS? IN OTHER WORDS, YOU SAID IF YOU 11:44:12 SEE A PATTERN, YOU TAKE THE NEXT STEP. 11:44:15 >> I WOULD SAY IF WE GET, I DON'T KNOW, 50 COMPLAINTS ON AN 11:44:22 AUTOMOBILE. SAY WE GET 10 COMPLAINTS, WE 11:44:24 LOOK AT THOSE SERIOUSLY. IF THOSE 10 COMPLAINTS APPEAR TO 11:44:28 BE SERIOUS, WE WILL BEGIN TO LOOK INTO IT. 11:44:31 >> THANK YOU. I SEE MY TIME EXPIRED. 11:44:34 >> THANK YOU GENTLEMEN FROM MARYLAND. 11:44:36 I NOW RECOGNIZE THE GENTLEMEN FROM FLORIDA, CONGRESSMAN MICA. 11:44:42 >> MR. CHAIRMAN, WHEN I RECEIVED THE NOTICE FOR TODAY'S HEARING, 11:44:48 THIS IS FROM THE COMMITTEE AND THIS SAYS THE PANEL INCLUDES 11:44:54 DAVID STRICKLAND, THE ADMINISTRATOR OF NH TSA. 11:44:58 HE HAS ONLY BEEN ON THE JOB FOR A LIMITED NUMBER OF DAYS, BUT 11:45:03 IT'S IMPORTANT HE TESTIFY. I WOULD ASK CONSENT THAT HE BE 11:45:07 ALLOWED TO TESTIFY AND BE SWORN IN AS A WITNESS. 11:45:14 >> IT WAS CHAINED EARLIER THAT THE SECRETARY INDICATED THE FACT 11:45:18 THAT THE DECISION WAS MADE, HE WAS ON THE JOB 40 DAYS. 11:45:21 THAT'S IT IS REASON HE IS NOT HERE. 11:45:23 THEY ASSURES US THAT THE DECISION IN TERMS OF THE FINAL 11:45:26 DECISION WAS HIS AND HE IS PREPARED TO ASSUME THAT 11:45:31 RESPONSIBILITY. ONCE HE SAID THAT, I BECAME 11:45:33 COMFORTABLE WITH IT. IF HE IS GOING TO ASSUME THE 11:45:38 RESPONSIBILITY, THEN OF COURSE WHEN WE DISCUSSED IT WITH THE 11:45:41 RANKING MEMBER, WE ACCEPTED THAT AND OF COURSE I THINK WE SHOULD 11:45:45 MOVE FORWARD. >> I DO UNDERSTAND THAT HE IS 11:45:49 HERE AND HE IS AVAILABLE. I NEVER MET HIM BEFORE, BUT I 11:45:54 READ HIS RESUME. THIS IS FROM THE DEPARTMENT 11:46:00 WEBSITE AND SAID HIS WORK INCLUDED -- HE WAS WITH THE 11:46:04 SENATE COMMITTEE ADVISING THE COMMERCE COMMITTEE MEMBERS LED 11:46:08 TO INCLUSION WITH SEVERAL SAFETY MANDATES INCLUDING THE 11:46:13 ELECTRONIC STABILITY CONTROL MANDATE FOR EVERY PASSENGER 11:46:16 VEHICLE. HE DOES HAVE A CERTAIN AMOUNT OF 11:46:19 EXPERTISE. IF WE LOOK AT THE SAFETY OF 11:46:23 EQUIPMENT, I THINK IT APPEARS HE NOT ONLY IS KNOWLEDGEABLE, BUT 11:46:29 ALSO HAD EXPERIENCE IN PASSING LEGISLATION OR INFLUENCING 11:46:34 REGULATION IN THAT REGARD. I CAN WITHDRAW MY REQUEST, BUT 11:46:39 AGAIN I'M DISAPPOINTED THAT HE IS NOT A WITNESS. 11:46:45 I WAS LED TO BELIEVE AGAIN THAT HE WAS ON THE WITNESS STAND. 11:46:48 >> WOULD THE GENTLEMEN YIELD? >> I DON'T WANT TO GET OUT -- 11:46:54 >> I WILL BE BRIEF. MR. CHAIRMAN, WE ARE 11:46:58 ANTICIPATING HAVING ANOTHER PANEL IN A WEEK OR TWO. 11:47:00 WOULD YOU AGREE TO WORK WITH US ON THE POSSIBLE INCLUSION 11:47:07 BECAUSE WE WILL BE CALLING PROBABLY BUSH ADMINISTRATION 11:47:10 PEOPLE AND WE CAN SEE THE POTENTIAL OF THAT AT THE END OF 11:47:13 THIS HEARING. >> I DON'T HAVE A PROBLEM WITH 11:47:15 THAT AT ALL. LET'S FACE IT, WHAT WE ARE 11:47:18 TALKING ABOUT HAPPENED ON THE OTHER WATCH. 11:47:21 OF COURSE WE NEED TO RECOGNIZE THAT. 11:47:23 THE OINT IS THAT I THINK THAT'S WHERE THE EMPHASIS SHOULD BE IN 11:47:27 TERMS OF TRYING TO MAKE CERTAIN WE TALK TO THEM. 11:47:31 I DON'T HAVE A PROBLEM ASKING THEM TO COME FORWARD AND THE 11:47:35 POINT IS THAT WE SHOULD MOVE FORWARD TODAY. 11:47:37 WE HAVE THE SECRETARY WITH US. >> I WILL WITHDRAW MY MOTION IF 11:47:45 IT'S ACCEPTABLE. WE WILL WORK WITH YOU. 11:47:49 IF I'M NOW RECOGNIZED. >> I RECOGNIZE THE GENTLEMEN FOR 11:47:53 FIVE MINUTES. >> NH TSA IS THE PRIMARY 11:48:01 NATIONAL SAFETY TRANSPORTATION SURFACE SAFETY TRANSPORTATION 11:48:07 AGENCY IN THE UNITED STATES AND THE DEPARTMENT OF COMMERCE. 11:48:10 RIGHT, MR. LA HOOD? >> THAT IS CORRECT. 11:48:15 EVERY ACCOUNT I HAVE HEARD TO DATE SAYS THAT NH TSA AND TOYOTA 11:48:22 FAILED. THE CHAIRMAN SAID IT IN OPENING 11:48:24 STATEMENTS YESTERDAY. WE HEARD THAT -- EYELESS I CAN'T 11:48:28 TALK TO THE ADMIB STRAIGHTER TODAY, BUT WE WILL GET AN 11:48:31 OPPORTUNITY TO HEAR FROM HIM. YOU OPENED YOUR COMMENTARY 11:48:38 RIGHTFULLY SO WITH SAFETY BEING YOUR PRIMARY RESPONSIBILITY OF 11:48:42 THE DEPARTMENT OF TRANSPORTATION. 11:48:46 AM I CORRECT? >> THAT'S CORRECT. 11:48:49 >> YOU NOW SET THE POLICY AND YOU HAVE BEEN THERE FOR A NOB OF 11:48:55 MONTHS. I'M SOMEWHAT BAFFLED BY THE 11:48:59 BUDGET REQUEST OF THE ADMINISTRATION FROM 2010 TO 11:49:06 2011. THE BUDGET REQUEST THAT CAME OUT 11:49:08 A FEW DAYS AGO. WITH THE SMALLEST REQUEST FOR 11:49:12 INCREASE IN BUDGET FOR OUR PRIMARY SAFETY AGENCY. 11:49:16 IT WAS ONLY $5 MILLION. YESTERDAY I SAID THE 11:49:22 TRANSPORTATION COMMITTEE THAT MY DAD USED TO SAY IT'S NOT HOW 11:49:25 MUCH YOU SPEND, BUT HOW YOU SPEND IT. 11:49:27 IF YOU SPEND IT WISELY. I THINK YOU KNOW THE CONCERN AND 11:49:33 I HAD ABOUT SAFETY AND MAKING THAT A PRIORITY, PARTICULARLY IN 11:49:38 TRANSPORTATION AND IN NH TSA IN PARTICULAR. 11:49:41 IT'S A RELATIVELY MODEST AMOUNT. IT'S ONE OF THE LOWEST INCREASES 11:49:48 REQUESTED. ANY REASON FOR THAT? 11:49:53 >> WE THINK THAT ADDING 66 NEW PEOPLE AT NH TSA GETS US WHERE 11:49:58 WE NEED TO BE IN TERMS OF STAYING ON TOP OF SAFETY ISSUES. 11:50:02 >> YOU HAVE 632 CURRENT POSITIONS. 11:50:05 HOW MANY FOR THAT. >> DOES MR. STRICKLAND, MR. 11:50:09 STRICKLAND OR YOUR STAFF? >> I'LL BE HAPPY TO GET BACK TO 11:50:12 YOU FOR THE RECORD. >> OKAY. 11:50:14 AND I WOULD LIKE, MR. CHAIRMAN, I ASK UNANIMOUS CONSENT THAT THE 11:50:17 NUMBER OF FTE VACANCIES IN NHTSA BE INCLUDED IN THE RECORD. 11:50:23 >> WITHOUT OBJECTION. >> THE ISSUE OF THE REVOLVING 11:50:28 DOOR OF PEOPLE GOING FROM NHTSA TO THE INDUSTRY, IT WAS STATED 11:50:33 THAT THERE IS NO COMMUNICATIONS, WHAT YOU STATED, ALLOWED BETWEEN 11:50:37 THEM. I HAVE A COPY OF AN E-MAIL IN 11:50:43 2008 BETWEEN SCOTT YOHN OF THE U.S. DEPARTMENT OF 11:50:47 TRANSPORTATION AND THE FORMER NHTSA EMPLOYEE WHO WORKS FOR 11:50:52 TOYOTA. ARE YOU AWARE THAT THIS TYPE 11:50:55 OF -- THESE TYPES OF COMMUNICATIONS WENT BACK AND 11:50:58 FORTH? >> I SAW THAT E-MAIL. 11:51:02 >> BUT YOU DID ADMIT THAT WE SHOULD TIGHTEN THINGS UP. 11:51:06 I THINK THAT WAS YOUR TERM. >> ABSOLUTELY. 11:51:09 >> AND IS THERE NOW A TWO-YEAR BAN OR ONE-YEAR BAN OR ARE YOU 11:51:14 FAMILIAR WITH THE RESTRICTIONS ON THE REVOLVING DOOR -- 11:51:16 >> TWO-YEAR BAN. >> OKAY. 11:51:18 SO I WOULD BE GLAD TO HEAR YOUR RECOMMENDATION AND SUPPORT YOUR 11:51:23 RECOMMENDATION TO TIGHTEN THIS, BUT -- 11:51:26 >> I'LL BE HAPPY TO WORK WITH YOU ON THAT. 11:51:28 >> I WOULD LIKE TO SUBMIT THIS DOCUMENT FOR -- TO THE RECORD TO 11:51:32 SHOW THAT IN FACT THERE HAS BEEN COMMUNICATIONS AND THAT WE DO 11:51:37 NEED TO CLOSE THE REVOLVING DOOR IF IT IS JUST LIMITED TO 11:51:43 TOYOTA -- >> WITHOUT OBJECTION. 11:51:46 >> THANK YOU. IT DOESN'T MATTER. 11:51:49 SO I HAVE SOME DISAPPOINTMENT, AGAIN, I DON'T WANT TO GET IN 11:51:51 ALL THE SPECIFICS OF WHERE THOSE BODIES ARE DIRECTED OR 11:51:56 REQUESTED. IT IS NOT MY INTENTION TO TRY TO 11:51:58 EMBARRASS THE DEPARTMENT. IT IS MY INTENTION TO MAKE 11:52:01 CERTAIN THAT YOU HAVE THE RESOURCES TO DO THE JOB THAT YOU 11:52:05 NEED TO DO TO ENSURE SAFETY. IS THERE ANYTHING ELSE YOU COULD 11:52:11 RECOMMEND TO EITHER OUR TRANSPORTATION COMMITTEE OR 11:52:14 GOVERNMENT REFORM IN THE WAY OF ADDITIONAL AUTHORITY, PERSONNEL 11:52:17 OR RESOURCES THAT WOULD ALLOW -- >> REGARDING SAFETY? 11:52:24 >> YES. >> I WOULD LOVE EVERYBODY TO 11:52:28 SUPPORT THE BILL THAT MR. OBERSER INTRODUCED. 11:52:32 THAT WOULD GIVE US OVERSIGHT OVER TRANSIT SYSTEMS. 11:52:39 AND I WOULD ENCOURAGE EVERY MEMBER OF THIS COMMITTEE TO LOOK 11:52:42 AT THAT BILL. IT IS A GOOD BILL. 11:52:43 AND IT GIVES US THE AUTHORITY WHICH WE'RE PROHIBITED FROM 11:52:46 DOING TO GET INTO THE SAFETY BUSINESS WITH RESPECT TO TRANSIT 11:52:50 ORGANIZATIONS. >> WELL, AND TRANSIT IS ONE 11:52:51 THING AND, AGAIN, FEDERAL AGENCY HAS SAY OVER AMTRAK AND FREIGHT 11:52:58 RAILS, WHICH HAVE PROBABLY THE WORST SAFETY RECORD, BUT IF YOU 11:53:03 TOOK ALL THE FATALITIES IN PUBLIC TRANSIT OVER THE YEARS, 11:53:09 AND COMPARED IT TO THE ONE -- THE INCIDENTS THAT HAVE BEEN 11:53:13 CITED TODAY IN THIS ONE AUTOMOBILE PART, I THINK YOU -- 11:53:19 WE HAVE A PROBLEM. >> MR. MICA, I DON'T MINIMIZE 11:53:22 ANY FATALITY. I THINK ONE FATALITY IS -- ARE 11:53:25 TOO MANY FATALITIES. AND WHEN EIGHT PEOPLE ARE 11:53:28 KILLED, HERE IN WASHINGTON, D.C. ON AMERICA'S METRO SYSTEM, 11:53:31 SOMEBODY NEEDS TO BE LOOKING OUT FOR SAFETY. 11:53:33 WE WANT TO DO THAT. AND I HOPE WE CAN HAVE YOUR 11:53:36 SUPPORT TO DO IT. >> FINALLY, I WOULD VENTURE TO 11:53:40 SAY THERE IS AN ARTICLE IN TODAY'S "POST" THAT IF THEY -- 11:53:44 IF WE HAD -- WE DO HAVE EQUIPMENT THAT COULD PROVIDE 11:53:52 THAT SAFETY. OUR MONEY WOULD BEST BE 11:53:58 EXPENDED -- >> YOU'LL BE HAPPY TO KNOW THE 11:53:59 PRESIDENT PROPOSED $150 MILLION IN THE 2011 BUDGET FOR RAMADA, 11:54:06 FOR EQUIPMENT. >> THE GENTLEMAN'S TIME IS 11:54:12 EXPIRED. >> $5 MILLION FOR THE NHTSA 11:54:13 BUDGET, THE LOWEST AMOUNT I HAVE IN RECENT HISTORY. 11:54:15 THANK YOU. >> GENTLEMAN'S TIME HAS EXPIRED. 11:54:17 I NOW YIELD TO THE GENTLEMAN FROM OHIO. 11:54:20 BUT LET ME JUST SAY BEFORE GO THAT, WE HAVE THREE VOTES AND, 11:54:26 OF COURSE, WE'RE GOING TO CONTINUE THROUGH THE VOTES. 11:54:29 I WANT TO ASSURE YOU OF THAT. SO AS SOON AS YOU VOTE, YOU NEED 11:54:33 TO COME RIGHT BACK BECAUSE WE'RE GOING TO CONTINUE. 11:54:35 WILL THE GENTLEMAN FROM OHIO IS RECOGNIZED FOR FIVE MINUTES. 11:54:39 >> I THANK THE CHAIRMAN. WELCOME, SECRETARY LaHOOD. 11:54:43 >> THANK YOU. >> CBS HAD AN EXCLUSIVE WHERE 11:54:48 THEY WERE ABLE TO GAIN SOME INTERNAL DOCUMENTS THAT SHOWED 11:54:52 THAT TOYOTA REDESIGNED SOFTWARE IN 2005 IN RESPONSE TO 11:55:02 COMPLAINTS THAT CARS WERE ACCELERATING UNEXPECTEDLY. 11:55:03 ARE YOU FAMILIAR WITH THOSE DOCUMENTS? 11:55:05 >> NO, SIR. I'M NOT. 11:55:07 >> IS THIS THE KIND OF ISSUE THAT NHTSA HAS THE ABILITY TO BE 11:55:20 ABLE TO GET INTO? >> YES, SIR. 11:55:23 >> SO ARE YOU INTERESTED IN THAT KIND OF A REPORT? 11:55:26 >> YES, SIR. >> ONE OF THE SUGGESTIONS MADE 11:55:35 IN THAT REPORT IS THAT THE -- BY AN ELECTRICAL ENGINEER -- IS 11:55:40 THAT THERE MAY BE A PROBLEM WITH S 11:55:47 SYSTEMS DESIGN WITH RESPECT TO TOYOTA AND I WOULD ASSUME BY 11:55:53 REFERENCE TO THEIR ELECTRONIC THROTTLE CONTROL. 11:55:58 DOES YOUR DEPARTMENT HAVE THE TECHNICAL ABILITY TO BE ABLE TO 11:56:07 ANALYZE SYSTEMS, DESIGN, ENGINEERING, MECHANICAL, 11:56:13 SOFTWARE, HARDWARE, AND ALL THE ELEMENTS THAT WOULD BE NECESSARY 11:56:16 TO BE ABLE TO COME TO A CONCLUSION AS TO WHAT THE NATURE 11:56:22 OF UNINTENDED ACCELERATION WOULD BE. 11:56:24 >> YES, SIR, WE DO. AND WE TAKE OUR RESPONSIBILITY 11:56:31 SERIOUSLY. WE HAVE 125 ENGINEERS. 11:56:33 WE HAVE ELECTRICAL ENGINEERS. WE'RE GOING TO GET INTO THE 11:56:36 WEEDS IN A VERY THOROUGH COMPREHENSIVE REVIEW ON THE 11:56:42 ELECTRONICS. BECAUSE THAT ISSUE HAS BEEN 11:56:43 RAISED ENOUGH THAT WE NEED TO DO THAT. 11:56:45 BEEN RAISED BY PEOPLE WHO DRIVE TOYOTAS, BEEN RAISED BY MEMBERS 11:56:49 OF CONGRESS AND WE'RE GOING TO DO IT. 11:56:51 >> THE DISTANCE BETWEEN WASHINGTON AND JAPAN IS WELL 11:56:58 ESTABLISHED. BUT THE QUESTION IS WHAT KIND OF 11:57:01 ABILITY DO YOU HAVE TO SEND THOSE WHO HAVE THE TECHNICAL 11:57:06 SKILLS TO ANALYZE DOCUMENTS TO JAPAN TO GET TOYOTA'S 11:57:12 CORPORATION IN BEING ABLE TO REVIEW RECORDS OF RESEARCH FROM 11:57:17 LET'S SAY 2004, 2005, ON THESE MODELS, INTERNAL DOCUMENTS, THAT 11:57:23 WOULD TEND TO SHOW WHETHER OR NOT TOYOTA WAS AWARE OF ANY OF 11:57:27 THESE PROBLEMS. HAVE YOU SENT PEOPLE, 11:57:30 SPECIFICALLY, TO DO THAT AND IF YOU HAVEN'T, DO YOU INTEND TO AS 11:57:35 PART OF YOUR FINDINGS AND YOUR INVESTIGATION? 11:57:37 >> WE HAVE ASKED FOR A VOLUMINOUS AMOUNT OF 11:57:46 INFORMATION. IF WE NEED TO GO JAPAN AND MEET 11:57:48 WITH THEIR ENGINEER AND GET MORE INFORMATION, THAT WILL BE A PART 11:57:50 OF OUR REVIEW. >> AND SO -- BUT YOU NO DOUBT 11:57:56 ARE AWARE THAT AS A ESTABLISHED AND RESPECTED AUTOMOBILE 11:58:03 MANUFACTURER THAT TOYOTA WOULD HAVE RESEARCH DOCUMENTS WITHIN 11:58:07 THEIR CONTROL THAT WOULD SHOW THE FUNCTION OF VARIOUS 11:58:11 COMPONENTS -- >> OF COURSE. 11:58:12 >> -- OF THEIR SYSTEM. >> YES, OF COURSE. 11:58:14 >> I THINK THIS IS IMPORTANT, MR. CHAIRMAN, OR MADAM CHAIR, 11:58:17 THAT WE HEAR FROM THE SECRETARY ON THIS BECAUSE HIS DEPARTMENT 11:58:22 DOES HAVE THE ABILITY TO BE ABLE TO GET INTO THIS. 11:58:26 AND WHILE WE AS MEMBERS GET THESE DOCUMENTS, WE CAN ANALYZE 11:58:28 THEM, WE HAVE HELP IN BEING ABLE TO UNDERSTAND. 11:58:31 ON THE TIME THAT I HAVE REMAINING, FOR THE INSTRUCTION 11:58:35 OF THE MEMBERSHIP AND THE PUBLIC, COULD YOU WALK US 11:58:39 THROUGH HOW COMPLAINTS ARE INVESTIGATED. 11:58:42 YOU KNOW, WHO DOES THE INVESTIGATION? 11:58:46 CAN YOU ENABLE US TO LEARN -- IS THIS ALL IN-HOUSE? 11:58:52 DO YOU OUTSOURCE ANY OF YOUR INVESTIGATIONS? 11:58:55 >> ALMOST ALL OF OUR INVESTIGATIONS ARE DONE IN-HOUSE 11:58:57 BY OUR EXPERTS. PEOPLE FILE COMPLAINTS WITH US. 11:59:01 AND WE TAKE THEM SERIOUSLY. WE LOOK INTO SEGMENT [1] 2010/02/24 ************************************************ Toyota Hearing 2/24/10 Witness : Ray LaHood Chmn Town's opening statement 11:00:26 terrifying death was not a freak accident, people complained about sudden acceleration and what people are wondering, will I be next? 11:00:53 received 2500 driver complaints about sudden acceleration, state farm reported over 900 cases, nhtsa did very little about it, Toyota ignored or minimized it, first blamed it on floor mats, I remain skeptical, problems at nhtsa and Toyota 11:02:41 evidence company concerned more w profit than safety 11:04:10 ntsa failed taxpayers, Toyota failed their customers , now have 39 deaths to give that some perspective, 27 deaths in pinto explosions if camry and prius were airplanes, they would be grounded 11:04:56 is it safe to drive these cars, can nhtsa say problem identified and fixed, can America trust nhtsa? Darryl Issa opening statement 11:07:54 recently Toyota began airing TV commercial in which they said good cos fix the mistakes, great cos learn from them, today asking those very questions, good or great company 11:11:42 Ray LaHood sworn in 11:12:18 safety is the no. 1 priority 11:15:29 nhtsa most effective defect program in the world, nhtsa receives more than 30,000 complaints every year take every one seriously, we will investigate, nhtsa resulted in 524 recalls involving 23 mil vehicles, we haven't sat on her hands, when people complain we investigate** 11:17:00 acting admin nhtsa flew to japan 11:18:07 by engaging Toyota directly avoided lengthy investigation, investigating whether Toyota acted quickly enough, will continue to make sure Toyota is doing all it promised 11:19:10 we will get in the weeds on this, do everything we can to see if electronics are part of the problem 11:19:49 I listened to the Saylor's 911 tape, met w saylor family to offer our sympathy, I hope no other family has to endure that 11:20:29 sworn in jan 09, traveled to 36 states, everywhere I've gone, I talked about safety, that has to be our first priority, we will not sleep at DOT and work 24/7 at nhtsa to make sure every Toyota is safe to drive** Q & A chmn to LaHood 11:21:59 why did it take nhtsa so long to act? 11:22:11 been in job a little over a year. 30,000 complaints come in every year and we look at every one of them, when we see a pattern we will do an investigation 11:23:31 safe to drive a Toyota today? 11:23:38 if people check our website we have listed every Toyota up for recall, take it to the dealer and make sure it gets fixed, we are going to work 24/7 continue until every Toyota is safe Issa questions Lahood 11:25:14 in the foreseeable future, dot should have every auto sold in America a vin no on file so they can see every recall 11:25:38 commit to you, we should make that info avail in the simplest possible way 11:26:51 any tech reason or common sense reason why we shouldn't transparently see all collateral material, any reason to wait until recall to get info? 11:28:00 it should be part of it, believe in transparency 11:29:15 between open source info can u commit to me to bring about real change so this doesn't happen again? 11:29:42 you have my commitment Kanjorski 11:33:37 don't want to excoriate our friends and exaggerate Burton 11:34:48 I'm taking resp for this, safety is no 1 I'm going to be resp, that's my job, not going to duck it 11:35:30 don't get mad at me Ray, that was the LA Times 11:36:26 if you've been an emp at DOT and go to work w co u cant participate in the work you did with this company 11:37:10 if anybody here knows that's there's violations, I'll alert the IG , no higher ethics 11:38:44 law should be tightened, perception is reality 11:38:56 thanks very much and I still love you Ray Cummings 11:39:22 on one hand very careful about what we're doing, main trading partners, other hand safety of our citizens spending thousands on auto and they have a right to expect to be safe, very telling testimony yesterdayon one hand very careful about what we're doing, main trading partners, other hand safety of our citizens spending thousands on auto and they have a right to expect to be safe, very telling testimony yesterday 11:41:02 you are our safety guy 11:41:11 for those cars listed on our website for recall, those are not safe, we believe we need to look at electronics, complete review but for now any car on website, we've determined those are not safe 11:43:44 the president proposed 66 new employees for nhtsa Mica and chmn debate whether head of nhtsa, Strikland, should testify, only been on the job 40 days 11:46:27 disappointed he's not a witness 11:48:45 baffled by budget request from administration with the smallest increase in budget , any reason for that? 11:49:40 adding 66 people gets us where we need to be 11:50:22 revolving door from nhtsa to car manufacturer, email?, is there now a 2 year ban? 11:52:00 any other recommendations 11:52:29 encourage every one to look at that bill to expand authority 11:53:12 don't minimize fatalities, one too many, when 8 killed on metro, somebody needs to look out for safety, we want to do it Kucinich 11:56:24 get into weeds on electronics because that's issue has been raised enough 11:57:30 we have asked for volumes of info from Toyota and if we need to go to japan we will 11:58:46 investigations done in house by our experts , interview people etc Souder

Michael Cohen Testifies Before House Oversight Committee 2/27/19 Michael Cohen, President Trump's former lawyer, testifies before the House Oversight and Reform Committee about various investigations related to the 2016 Trump presidential campaign. Mr. Cohen >> I believe that the top signature is Donald Trump Jr. And that the bottom signature is, I believe, is Allen Weissleberg's. Mr. Cummings >> Can you tell me the date of that check? Mr. Cohen >> March 17th of 2017. 110001 Mr. Cummings >> Wait a minute. Hold up. The date on the check is after President Trump held his big press conference claiming that he gave up control of his businesses. How could the president have arranged for you to get this check if he was supposedly playing no role in his business? Mr. Cohen >> Because the payments were designed to be paid over the course of 12 months, and it was declared to be 110032 >> a retainer for services that would be provided for the year of 2017. Mr. Cummings >> Was there a retainer agreement? Mr. Cohen >> There was no retainer agreement. Mr. Cummings >> Would Don Junior or Mr. Weissleberg have more information about that? Mr. Cohen >> Mr. Weissleberg for sure about the entire discussions and negotiations prior to the election, and Don Junior would have cursory information. 110103 Mr. Cummings >> Now, here's another one. This one appears to be signed by Donald Trump himself. Is that his signature? Mr. Cohen >> That is Donald Trump's signature. Mr. Cummings >> So let me make sure I understand. Donald Trump wrote you a check out of his personal account while he was serving as President of the United States of America to reimburse you for hush money payments 110131 to Ms. Clifford. Is that what you are telling the American people today? Mr. Cohen >> Yes, Mr. Chairman. Mr. Cummings >> One final question. The President claimed he knew nothing about these payments. His ethics filing said he owed nothing to you. Based on your conversations with him, is there any doubt in your mind that President Trump knew exactly what he was paying for? 110201 Mr. Cohen >> There is no doubt in my mind and I truly believe there's no doubt in the people of the United States of America. Mr. Cummings >> These new documents appear to corroborate what you just told us. With that, I'll yield to the gentleman and ranking member. Mr. Jordan >> I will make sure that you and I meet one day while we're in the courthouse andly take you for every penny you still don't have and I will come after your daily beast and everybody else that you possibly know. 110232 So I'm warning you, tread very efing lightly because what I'm going to do to you is going to be efing disgusting, you understand me? Mr. Cohen, who said that? Mr. Cohen >> I did. Mr. Jordan >> And did you say that, Mr. Cohen, in your testimony on page two, you said you did things for Mr. Trump in an effort to protect him. Was that statement that I just read that you admitted to saying, did you do that to protect Donald Trump? 110301 Mr. Cohen >> I did it to protect Mr. Trump, Donald Trump Jr., Ivanka Trump and Eric Trump. Mr. Jordan >> In your sentencing statement back in December in front of the judge, you said this, Mr. Cohen, my weakness can be characterized as a blind loyalty to Donald Trump, a blind loyalty that led me to choose a path of darkness. Is that accurate, Mr. Cohen? Mr. Cohen >> I wrote that. Mr. Jordan >> You wrote that and said that in front of the judge, is that right? Mr. Cohen >> That's correct. 110329 Mr. Jordan >> Let me read a few other things here and let me ask you why you did some of these things. When you filed a false tax return in 2012, 2013, 2014, 2015 and 2016, was all that out of blind loyalty to the president? Mr. Cohen >> No, it was not. Mr. Jordan >> When you failed to report 4 million in income to the internal revenue service, did you do that to protect Donald Trump? Mr. Cohen >> No, I did not. Mr. Jordan >> And when you failed to pay 1.4 million in taxes -- 110402 >> I got constituents who don't make that in a lifetime. When you failed to pay 1.4 million in taxes to the U.S. Treasury was that out of blind loyalty to the president of the United States? Mr. Cohen >> It was not. But the number was 1.38 and change and I have paid that money back to the IRS. Mr. Jordan >> I think the American people appreciate that 1.38. Mr. Cohen >> I would also like to say it was over a course of five years, approximately 260,000 a year. 110433 Mr. Jordan >> That's what I said, 2012, 2013, 2014, 2015, that's five years. Mr. Cohen >> Yes. Mr. Jordan >> Got it. When you made false statements to financial institutions concerning a home equity line of Credit, Taxi medallions on your Park Avenue apartment in 2013, 2014, and 2015 and you plead guilty to making those false statements to those banks, was that all done to protect the president? Mr. Cohen >> No, it was not. 110459 Mr. Jordan >> How about this one. When you created the fake Twitter account women for Cohen and paid a firm to post tweets like this one, "In a world of lies, deception and fraud, we appreciate this honest guy @Michael Cohen, #tgif #handsome #sexy. Was that done to protect the president? Mr. Cohen >> Mr. Jordan I didn't actually set that up. It was done by a young lady that worked for red finch. During the course of the campaign which you would know, is somewhat crazy and wild, 110535 we were having fun. That's what it was, sir. We were having fun. Mr. Jordan >> Was it done to protect the president? Mr. Cohen >> That was not done to protect the president? Mr. Jordan >> Was it a fake Twitter account? >> No. It was a real Twitter account. It exists. >> You paid a firm to create this-- Mr. Cohen >> I didn't pay the firm. It was done by a young lady that worked for the firm. Again, sir, we were having fun during a stressful time. Mr. Jordan >> The point is Mr. Cohen did you lie to protect the president or did you lie to help yourself? 110601 Mr. Cohen >> I'm not sure how that helped me, sir. Mr. Jordan >> I'm not sure how it did either. Mr. Cohen >> Right. And I would like to also note that more than half the people on that site are men. Mr. Jordan >> Here's the point. The chairman just gave you a 30-minute opening statement and you have a history of lying over and over and over again. Frankly, you don't have to take my word for it. Take what the court said, take what the southern district of New York said. Cohen. did crimes that were marked by a pattern of deception and that permeated his professional life. 110635 These crimes were distinct in their harms but very common set of circumstances. They each involved deception and were each, each motivated by personal greed and ambition. A pattern of deception for personal greed and ambition. And you just got 30 minutes of an opening statement where you trashed the president of the United States of America. Mr. Cohen, how long did you work for Donald Trump? 110701 Mr. Cohen >> Approximately a decade. Mr. Jordan >> Ten years? Mr. Cohen >> That is correct. Mr. Jordan >> You said all these bad things about the president there in that last 30 minutes, and yet you worked for him for ten years? All those bad things -- I mean, if it's that bad, I can see you working for him for ten days, maybe ten weeks, maybe even ten months. But you worked for him for ten years. Mr. Cohen, how long did you work in the white house? 110730 Mr. Cohen >> I never worked in the white house. Mr. Jordan >> That's the point, isn't it, Mr. Cohen? Mr. Cohen >> No, sir. Mr. Jordan >> Yes, it is. Mr. Cohen >> No, it's not, sir. Mr. Jordan >> You wanted to work in the white house and you didn't get brought to the dance. Mr. Cohen >> Sir, I was extremely proud to be personal attorney to the president of the United States of America. I did not want to go to the white house. I was offered jobs. I can tell you a story of Mr. Trump reaming out Reince Priebus because I had not taken a job where Mr. Trump wanted me to, which is working with Don McGahn 110801 at the white house general counsel's office. One second. What I said at the time -- and I brought a lawyer in who produced a memo as to why I should not go in, because there would be no attorney/client privilege. And in order to handle some of the matters that I talked about in my opening, that it would be best suited for me not to go in and that every president had a personal attorney. Mr. Jordan >> Here's what I see. I see a guy who worked for ten years and is here trashing the guy he worked for for ten years, didn't get a job in the white house, and now you're behaving just like everyone else who got fired or didn't get the job they wanted like Andy Mccabe, like James Comey, same kind of selfish motivation after you don't get the thing you want. 110848 That's what I see here today and I think that's what the American people see. Mr. Cohen >> Mr. Jordan, all I wanted was what I got, to be personal attorney to the president, to enjoy the senior year of my son in high school and waiting for my daughter who is graduating from college to come back to New York. I got exactly what I want. Mr. Jordan >> Exactly what you want? Mr. Cohen >> That's right. Mr. Jordan >> You're going to prison. Mr. Cohen >> I received exactly what I wanted. 110914 Mr. Cummings, Chairman >> The gentleman's time has expired. Ms. Wasserman Schultz. Ms. Schultz >> Thank you, Mr. Chairman. Mr. Cohen, thank you for being here today. As you likely know, I served as the chair of the democratic national committee at the time of the Russian hacks and when Russia weaponized the messages it had stolen. But I want to be clear, My questions are not about the harm done to my individual by wikileaks and the Russians. 110941 It's about the possible and likely harm to the United States of America and our democracy. I have a series of questions that I hope will connect more of these dots. Mr. Cohen, is it your testimony that Mr. Trump had advanced knowledge of the Russia wikileaks release of the DNC's e-mails? Mr. Cohen >> I cannot answer that in a yes or no. He had advanced notice that there was going to be a dump of e-mails, but at no time did I hear the specificity of what those e-mails were going to be. 111015 Ms. Schultz >> But you do testify today that he had advanced knowledge of their imminent release. Mr. Cohen >> That is what I had stated in my testimony. Mr. Schultz >> And that he cheered that outcome? Mr. Cohen >> Yes, ma'am. Ms. Shultz >> Did Mr. Trump likely share this information with his daughter ivanka, son don junior or Jared Kushner? Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was ivanka, Jared or don junior still involved in the Russian tower deal at that time? 111044 Mr. Cohen >> The company was involved in the deal, which meant that the family was involved in the deal. Ms. Schultz >> If Mr. Trump and his daughter ivanka and son Donald junior are involved in the Russian trump tower deal, is it possible the whole family is conflicted or compromised with a foreign adversary in the months before the election? Mr. Cohen >> Yes. Ms. Schultz >> Based on your experience with the president and knowledge of his relationship with Mr. Stone, do you have reason to believe that the president explicitly or implicitly authorized Mr. Stone to make contact with wikileaks and to indicate the campaign's interest in the strategic release of these illegally hacked materials? 111122 Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was Mr. Stone a free agent reporting back to the president what he had done? Or was he an agent of the campaign acting on behalf of the president and with his apparent authority? Mr. Cohen >> No. He was a free agent. Ms. Schultz >> A free agent that was reporting back to the president what he had done? Mr. Cohen >> Correct. He frequently reached out to Mr. Trump, and Mr. Trump was very happy to take his calls. It was free service. Ms. Schultz >> Roger stone says he never spoke with Mr. Trump about wikileaks. How can we corroborate what you are saying? Mr. Cohen >> I don't know. But I suspect that the special counsel's office and other government agencies have the information that you're seeking. 111209 Ms. Schultz >> Moving on to a little later in 2016, a major wikileaks dump happens hours after the access Hollywood tape is released. Do you believe or are you aware of Mr. Trump coordinating or signaling for this e-mail dump? Mr. Cohen >> I'm unaware of that. I actually was not even in the country at the time of the Billy bush tape. I was in London visiting my daughter. Ms. Schultz >> Knowing how Mr. Trump operates with his winning at all costs mentality, do you believe that he would cooperate 111242 or collude with a foreign power to win the presidency? Is he capable of that? Mr. Cohen >> It calls on so much speculation, ma'am. It would be unfair for me -- Ms. Schultz >> You have a tremendous amount of experience. Mr. Cohen >> Mr. Trump is all about winning. He will do what is necessary -- Ms. Schultz >> And in your opinion and experience, would he have the potential to cooperate or collude with a foreign power to win the presidency at all costs? 11-13-13 Mr. Cohen >> Yes. Ms. Schultz >> Based on what you know, would Mr. Trump or did he lie about colluding and coordinating with the Russians at any point during the campaign? Mr. Cohen >> As I stated in my testimony, I wouldn't use the word colluding. Was there something odd about the back and forth praise with president Putin? Yes. But I'm not really sure that I can answer that question in terms of collusion. 111351 I was not part of the campaign. I don't know the other conversations that Mr. Trump had with other individuals. There's just so many dots that all seem to lead to the same direction. Ms. Schultz >> Finally, before my time expires, Mr. Cohen, the campaign and the entire trump organization appeared to be filthy with Russian contact. There are Russian business contacts, there are campaign Russian contacts, there are lies about all of those contacts, 111427 and then we have Roger stone informing the president just before the democratic national convention that wikileaks was going to drop documents in the public arena that we knew at that point were hacked and stolen by Russia from the democratic national committee. Mr. Cummings, Chairman >> The gentle lady's time has expired. Ms. Schultz >> My question is, given all these connections, is it likely that Donald Trump was fully aware and had every intent of working with Russia to help make sure that he could win the presidency at all costs? 111506 Mr. Cohen >> Let me say this is a matter that's currently being handled by the house select and the senate select intelligence committees. So I would rather not answer that specific question other than just the tell you that Mr. Trump's desire to win would have him work with anyone. And one other thing that I had said in my statement is that when it came to the trump tower Moscow project, 111540 it was worth hundreds of millions of dollars, and we never expected to win the election. So this was just business as usual. Ms. Schultz >> Thank you, Mr. Cohen. Thank you, Mr. Chairman. Mr. Green >> Thank you Mr. Chairman, ranking member Jordan. The chairman in this committee promised members of the american people a fair and open process, yet the Democrats have vastly limited the scope of this hearing. They've issued a gag order to try to tell members of this committee what we can and cannot talk about. My colleagues on the other side of the aisle claim they want the truth, that they want transparency and fair oversight. 111616 Yet the Democrats' witness to testify before congress today is none other than a sworn scorned man who's going to prison for lying to congress. Let that sink in. He's going to prison for lying to congress and he's going to prison for lying to congress and he's the star witness, to congress. If you read the sentencing report on Mr. Cohen, words like deceptive and greedy are scattered throughout that report. It paints a picture of a narcissist, a bully who cannot tell the truth about the president or about his own personal life. 111648 But today he's the majority party's star witness. If the Democrats were after the truth, they'd have an honest person here testifying. And if they were really after the truth, they'd not restrict the questioning to just a few topics. But let's take a look at those restricted topics. Mr. Chairman, the first topic in your limited scope that I can ask Mr. Cohen is about the president's debts. But Mr. Chairman didn't Mr. Cohen plead guilty to lying to banks about his personal finances? We're asking a guy going to jail for lying about his debts to comment about the president's debts. 111729 He's the expert. Mr. Chairman,your next couple of topics say I can ask Mr. Cohen about the president's compliance with financial disclosures and campaign finance laws but didn't Mr. Cohen on two occasions break campaign finance law with his own donation? Again, the majority party star witness on the president's compliance is a guy who broke compliance laws himself. Mr. Chairman, you graciously allow us to ask questions of Mr. Cohen on the president's dealings with the irs and tax law. 111802 Your star witness here broke the law with regards to the irs at least five times. He pled guilty on cheating on his taxes, lying to the irs. He's the best witness you got? Next up with the permission of the chairman I get to ask Mr. Cohen about his perspective on the president's business dealings. Let me get this straight. The witness lied to multiple financial institutions to get loans to pay off other loans just to keep himself afloat and he's going to be the expert on business practices. 111836 Obviously, Mr. Chairman, the witness may produce documents that he suggests incriminates the president, yet he lies to banks. All of those lies were done on fraudulent documents, documents that he forged. Nothing he says or produces has any credibility. Apparently he even lied about delivering his own child, which his wife had to correct the record. Ladies and gentlemen, how on Earth is this witness credible? 111905 With all the lies and deception, the self-serving fraud, it begs the question, what is the majority party doing here? No one can see this guy as credible. He will say whatever he wants to accomplish his own personal goals. He's a fake witness. And his presence here is a travesty. I hope the American people see through this. I know the people back in Tennessee will. And with that statement, sir, I have a few questions of the witness. 111937 With your loss of your law license, I think you mentioned in your opening statement that you had been disbarred. What is your source of income in the future? Mr. Cohen >> I don't expect I'm going to have a source of income when I'm in the federal penitentiary. Mr. Green >> Is there a book deal coming? >> I have no book deal in the process. I have been contacted by many including for television, a movie. If you want to tell me who you would like to play you, I'm more than happy to write the name down. I would also like to turn around and just to correct your statement on me -- 112014 Mr. Green >> Let me ask one other question, though. I only have a limited amount of time. Mr. Cohen No individual -- Mr. Green >> One quick question. Who paid your expenses to be here today? Mr. Cohen >> Who's paid my expenses? Mr. Green >> To be here today. Mr. Cohen >> I paid my expenses. Mr. Green >> Mr. Chairman, I'd like to yield the remainder of my time to the ranking member. Mr. Jordan >> Mr. Cohen, how many times did you talk to the special counsel's office? Mr. Cohen >> Seven. Mr. Jordan >> Did they talk to you at all in preparation for today's hearing between the seven times you talked to them prior to your sentencing, have you had any conversations with the special counsel's office between sentencing and today? 112050 Mr. Cohen >> I'm sorry I don't understand your question. Mr. Jordan >> You talked to them seven times in the sentencing memorandums in front of the court back in December. What I'm asking is how many times you've talked to the special counsel's office since then up to today's appearance here in congress? Mr. Cummings, Chairman >> The gentleman's time has expired. You may answer the question now. Mr. Cohen >> I'm sorry I don't have the answer to that. Mr. Cummings, Chairman >> Ms. Maloney. Mr. Jordan >> I'll come back to that. 11:21:13 Ms. Maloney >> Thank you, Mr. Chairman. Mr. Cohen, in your ten years of working for Donald Trump, did he control everything that went on in the trump organization? And did you have to get his permission in advance and report back after every meeting of any importance? Mr. Cohen >> Yes. There was nothing that happened at the trump organization, whether it was a response as the daily beast story that you referred to, ranking member, that did not go through Mr. Trump with his approval and sign-off as in the case of the payments. 112200 Ms. Maloney >> How many times did the president, Michael, ask you or direct you to try to reach settlements with women in 2015 and 2016? Mr. Cohen >> I'm sorry, ma'am. I don't have the answer to that. I'd have to go back and try and recollect. It's certainly the two that we know about. Ms. Maloney >> Why do you think the president did not provide the accurate information in his 2017 financial disclosure form? What was he trying to hide? He corrected other forms, but he didn't correct this one. 112242 Mr. Cohen >> The payments on the reimbursement of the funds that I extended on his behalf. Ms. Maloney >> Can you elaborate more? Mr. Cohen >> Well, going back into the story, as I stated when Alan weissleberg and I left the office and went to his office in order to make the determination on how the money was going to be wired to the Iola, the interest on a lawyer's account for Keith Davidson in California, I had asked Alan to use his money. 112314 Didn't want to use mine. He said he couldn't. We then decided how else we can do it. He asked me whether or not I know anybody who wants to have a party at one of his clubs that could pay me instead or somebody who may have wanted to become a member of one of the golf clubs. And I also don't have anybody who was interested in that. It got to the point where it was down to the wire. It was either somebody wire the funds and purchase the life rights to the story from Ms. Clifford, or it was going to end up being sold to television, and that would have embarrassed the president and it would have interfered with the election. 112402 Ms. Maloney >> But the president has never amended his 2017 form to this day. While you're facing the consequences of going to jail, he is not. Mr. Cohen >> I believe they amended a financial disclosure form and there's a footnote somewhere buried. I don't recall specifically what it says, but there is a footnote buried somewhere. Ms. Maloney >> Can you describe, Michael, to the American people catch-and-kill? Mr. Cohen >> Catch-and-kill is a method that exists when you're working with a news outlet. 112439 In this specific case it was AMI, national enquirer, David pecker, Dylan Howard and others, where they would contact me or Mr. Trump or someone and state that there's a story that percolating out there that you may be interested in. Then what you do is you contact that individual and purchase the rights to that story from them. Ms. Maloney >> And you practiced this for the president? Mr. Cohen >> I was involved in several of these catch-and-kill episodes. But these catch-and-kill scenarios existed between David pecker and Mr. Trump long before I started working for him in 2007. 112525 Ms. Maloney >> Michael, can you suggest who else this committee should talk to for additional information on this or anything else? Mr. Cohen >> Yes. I believe David pecker, Dylan Howard, Barry Levine of Ami as well. Alan weissleberg, Alan Garton of the trump organization as well. Ms. Maloney >> Thank you very much for your testimony. And Mr. Chairman, this is a story of redemption. Mr. Cohen >> Thank you, ma'am. 112554 Mr. Cummings, Chairman >> Mr. Comer. Mr. Comer >> Mr. Cohen, in your testimony you stated that you began work for the trump organization as a lawyer dealing with real estate transactions, is that correct? Mr. Cohen >> That is correct. Mr. Comer >> Prior to coming to congress, I served as a director of two different banks so I've seen hundreds of loan applications and to try to determine your credibility here today, I just wanted to ask you a couple of real estate transaction questions just to see how in fact you operate. During to the southern district of New York prosecutors, you lied to banks to secure loans by falsing stating the amount of debt you were carrying. Mr. Cohen my question to you, was it Donald Trump's fault that you knowingly committed a crime of deception to defraud a bank? 112637 Mr. Cohen >> No, it's not. Mr. Comer >> Was that fraudulent loan you obtained for the trump organization or for you personally? Mr. Cohen >> It would be for me, though I'm not familiar with which loan you're referring to. I would like to say one thing. Sorry, I would like to respond. Mr. Comer >> The loan -- Mr. Cohen >> When we're talking about the home equity line of credit which is what I believe you're referring to -- Mr. Comer >> We're also referring -- I'm going to ask a question pertaining to your summer home you purchased too. 112706 Mr. Cohen >> I never purchased a summer home. No individual on no bank in the 22 years that I've had loans have ever lost a dollar with me. I owe no money to my bank. Mr. Comer >> The banks usually find out when someone's trying to deceive them. Mr. Cohen >> In 22 years I have no money owed to any individual or bank. Mr. Comer >> Mr. Cohen, did you so-called blind loyalty to the president cause you to defraud the bank for your own personal gain? Mr. Cohen >> Sir I take exception to that because I never defrauded any bank. 112740 Mr. Comer >> Let's dig a little deeper on that, on the bank fraud. According to the southern district of New York you failed to disclose $20 million in liabilities as well as tens of thousands of dollars of monthly expenses. That's according to the southern district of New York. Mr. Cohen, you being a lawyer, surely you knew you were breaking the law. Why would you have done that? Mr. Cohen >> Sir I'm not a cpa. I plead guilty. I'm going to prison as a result of it. Mr. Comer >> Because you're a con? Mr. Cohen >> No, sir. Because I plead guilty and I am going to be doing the time. I have caused tremendous, tremendous pain to my family. And I take no happiness -- 112822 Mr. Comer >> Let's go back to one last question about the bank. When the bank found out about the liabilities that you failed to disclose, you lied again to the bank, this is according to the southern district of new York, and said it had been expunged when in fact you just shifted the debt to another bank. Apparently, according to the information that we received,your intent to defraud the bank was for the desire to purchase the summer home for $8.5 million. Mr. Cohen >> No, sir. That would have been off an equity line. 112856 Considering I had less than a 50% loan to value on the assets and it was a pre existing line of credit that existed years before the date that you're referring to where this is all surrounding New York City taxi medallions. Mr. Comer >>But you understand that when you failed to disclose liabilities, especially $20 million in liabilities that is in fact fraud. Mr. Cohen >> Except even with $20 million in liability Mr. Comer >> How much was it? 112928 Mr. Cohen >> The medallions were at that time worth over $45 million Mr. Comer >> Mr. Cohen, you called Donald Trump a cheat in your open testimony. What would you call yourself? Mr. Cohen >> A fool. Mr. Comer >> You calling -- okay. Well, no comment on that. Mr. Cohen >> I appreciate that. Mr. Comer >> Mr. Chairman, we said we were in search of the truth. I don't believe that Michael Cohen is capable of telling the truth. And I would hope that as this committee moves forward, that when we have the opportunity to subpoena witnesses, 113002 we subpoena witnesses that are not recently disbarred, are not convicted felon, and witnesses that haven't committed bank fraud and tax fraud. That is how we're going to determine the truth. Mr. Chairman, I yield the balance of my time to the ranking member. Mr. Jordan >> I would just make one point. We just had a five-minute debate where Mr. Cohen dispute what is the southern district of new York found, what the judge found, that he was actually guilty of committing bank fraud. 113030 >> If this statement back here doesn't say it all, Cohen's consciousness of wrongdoing is fleeting, his remorse is minimal/ His instinct is to blame others is strong. There is only one thing wrong with that statement. His remorse is non-existent. He just debated a member of congress saying I really didn't do anything wrong with the false bank things that I'm guilty and going to prison for -- Mr. Cohen >> Mr. Jordan, that's not what I said. And you know that's not what I said. Mr. Jordan >> Will the gentleman yield? Mr. Cohen >> I said that I pled guilty and I take responsibility for my actions. 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the back of Kazakhstan? Mr. Cohen >> It's not a bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's knowledge or direction? Mr. Cohen >> Everything was done with the knowledge and at the direction of Mr. Trump. Mr. Clay >> Tell us why he would do that and what purpose did it serve. Mr. Cohen >> It depends upon the situation. There were times that I was asked, again with Allen Weissleberg, 114501 the CFO, to go back to speak with an individual from Forbes, because Mr. Trump wanted each year to have his net worth rise on the Forbes wealthiest individuals list. And so what you do is you look at the assets and you try to find an asset that has say, for example, 40 Wall Street, which is 114530 >> about 1.2 million square feet. Find an asset that is comparable, find the highest price per square foot that's achieved in the area and apply it to that building. Or if you're going off of your rent roll, go by the gross rent roll times a multiple and you make up the multiple which is something he had talked about. It's based upon what he wanted to value the asset at. Mr. Clay >> You know, you have provided this committee with copies 114601 >> of the president's financial statements or parts of them from 2011, 2012 and 2013. And Mr. Chairman, I would like to submit those for the record. Mr. Chairman, I'd like to submit the statements to the record. Mr. Cummings >> Without objection, so ordered. Mr. Clay >> Thank you. Can you explain why you had these financial statements and what you used them for? Mr. Cohen >> So these financial statements were used by me for two purposes. 114603 >> One was discussing with media whether it was Forbes or other magazines, to demonstrate Mr. Trump's significant net worth.That was one function. Another was when we were dealing later on with insurance companies, we would provide them with these copies so that they would understand that the premium, which is based sometimes upon the individual's 114700 >> capabilities to pay, would be reduced. Mr. Clay >> And all of this was done at the President's direction and with his knowledge? Mr. Cohen >> Yes. Because whatever the numbers would come back to be, we would immediately report it back. Mr. Clay >> And did this information provided to us inflate the president's assets? Mr. Cohen >> I believe these numbers are inflated. Mr. Clay >> And of course, 114731 >> inflating assets to win a newspaper poll to boost your ego is not a crime. But to your knowledge, did the president ever provide inflated assets to a bank in order to help him obtain a loan? Mr. Cummings >> The gentleman's time has expired, but you may answer that question. Mr. Cohen >> These documents and others were provided to Deutsche Bank on one occasion where I was with them in our attempt to obtain 114801 >> money so we can put a bid on the Buffalo bills. Mr. Clay >> Thank you for your answer. Mr. Cummings >> Mr. Hice of Georgia Mr. Hice >> I'd like to yield a second to the gentleman from North Carolina. Mr. Meadows >> I thank the gentleman for yielding. I want to ask unanimous consent to put into the record an article from stat which indicated that Mr. Cohen's promised access, not just Trump, but also the circle around him, it was almost as if we were hiring a lobbyist, close quote. I ask unanimous consent. Mr. Cummings >> Without objection. 114830 Mr. Meadows >> I ask unanimous consent that we put into the record a criminal referral for violating section 22 USC of the statute number 611. I ask unanimous consent that my letter referring Mr. Cohen for violating Fara for illegal lobbying activity be entered into the record. Mr. Cummings >> Without objection, so ordered. Mr. Meadows >> I asked unanimous consent that the first order of business for this committee is for us to look in a bipartisan 114900 way at criminal referrals at the next business meeting. Mr. Cummings >> These are not documents. There are objections. Mr. Meadows >> So we're objecting to a unanimous consent request? Mr. Chairman? Mr. Cummings >> Yes. Mr. Meadows >> I will yield back. Mr. Cummings >> Let me be clear. Mr. Hice, I'm going to give you your whole five minutes, alright? 114930 Mr. Hice >> Thank you, Mr. Chairman. Mr. Cummings >> In fairness to you. Mr. Meadows, the chairman, the ranking member made me aware that I had given a little more time to Ms. Wasserman-schultz. I was going to let you do that anyway, but I just want the committee to know that because there are so many members, I'm going to be strict on this five minutes, all right? Thank you very much. Mr. Hice, you have five minutes. 114959 Mr. Hice >> Thank you, Mr. Chairman. Cohen you said you lied, but you're a liar. If you lied you are a liar by definition. You also said a moment ago that the facts are inaccurate. If they are facts they are accurate and that would make you inaccurate, but I would like to take a moment and I would like to know who you consulted with to prepare for today's hearing? Lanny Davis and who else? Mr. Cohen >> I consulted with my counsel, Lanny Davis as well as Michael Monaco. Mr. Hice >> All right. Did you or Michael 115030 >> or Lanny Davis or anyone else cooperate with the Democratic majority to prepare for this hearing? Mr. Cohen >> I'm sorry, say that again, please? Mr. Hice >> Did you or anyone else on your team cooperate with the Democrat party in preparing for this hearing? Mr. Cohen >> We've spoken to the party. Mr. Hice >> Okay. Did you prepare with chairman Cummings or anyone on your team? Mr. Cohen >> What do you mean by prepare? Mr. Hice >> Prepare for this hearing? Mr. Cohen >> Prepare? I prepared with my counsel. Mr. Hice >> Did you prepare with the 115100 >>Democrat majority or chairman Cummings. Mr. Cohen >> We spoke with chairman Cummings and the party. Mr. Hice >> With chairman Schiff? Mr. Cohen >> I spoke with chairman Schiff and his people, as well. Mr. Hice >> Were there any other individuals acting as a liaise for you and your party. Mr. Cohen >> I'm sorry, sorry, what did you say? Mr. Hice >> Did you have a liaison other than who you mentioned that were working with the majority to prepare for this hearing? 115134 Mr. Cohen >> Liaison. We spoke with various individuals that you just raised, yes. Mr. Hice >> Tom Steyer, him or any of his representatives or anyone associated with him, any of them paying Lanny Davis to represent you? Mr. Cohen >> Not that I'm aware of. Mr. Hice >> Who is paying Lanny Davis? Mr. Cohen >> At the moment no one. Mr. Hice >> He is doing all this work for nothing? Mr. Cohen >> yes, sir. 115200 Mr. Hice >> Okay. Mr. Cohen >> And I hope so. [ Laughter ] Mr. Hice >> I kind of doubt it, but -- how did Lanny Davis come to represent you? Did he approach you or did you approach him? Mr. Cohen >> I reached out to Lanny Davis at the recommendation of my former counsel over at McDermott, Will & Emory who knew Mr. Davis and Mr. -- Mr. Hice >> So you reached out to Mr. Davis? 115230 Mr. Cohen >> I did, yes, initially. Mr. Hice >> Okay. So did you want to testify before Congress or did he urge you to testify here? Mr. Cohen >> I was asked to come here, and I am here, sir, voluntarily because it's my decision -- Mr. Hice >> By who? My question, did he ask you to come here? Mr. Cohen >> No, sir. Mr. Hice >> Okay because he says that he did ask you to come here and that he convinced you and also that he did the same with 115300 >> Chairman Cummings, as well. So your testimony here is that you approached Lanny Davis to represent you and to come here. He did not persuade you to come here? Mr. Cohen >> He did not persuade me. Actually, chairman Cummings, which was part of the conversations that we engaged in with his people as well as chairman Schiff and others, we spoke in order to ask me to come here voluntarily. 115329 Mr. Hice >> I find the connecting of the dots here with -- with Mr. Davis and you and frankly the chairman and perhaps others to be rather stunning that there is an agenda for all this happening here today, and I believe, frankly, that that's to bring the President down, to impugn the President. You made an oath last time you were here and that oath meant nothing to you then. We had an oath here in this very room about a month ago, 115401 >> and it was, quote, be clear that I will seek the truth, nothing but the truth so help me god, end quote. It sounds like an oath to me. The Chairman made that statement in this very room last month and here we are today, our first big hearing, with you as we all know a convicted liar, lying to Congress, a criminal, and I believe this witness is totally incompatible with the stated goal of having to seek the truth in this hearing. 115437 >> This is the first time in the history of Congress we have someone testifying here who has already been convicted of lying to Congress so congratulations for being the first in Congress to do that Mr. Cohen >> thank you Mr. Hice >> and Mr. Cummings as well? I can't believe we have brought this committee to its knees in terms of losing its credibility and it's a shameful mockery of what our purpose is. I yield back. 115502 Mr. Cummings >> The gentleman's time has expired. Mr. Lynch. Mr. Lynch >> Let me just pick up on those last comments. Want to talk about a low point? How about Mr. Papadopoulos pled guilty, Mr. Manafort convicted, pled guilty to two other charges. Mr. Gates pled guilty, Mr. Flint pled guilty, Mr. Vanders pled guilty, Mr. Kilimnik indicted for obstruction of justice and for two years 115530 >> you want to talk about an agenda, my friends on the other side of the aisle refuse to bring any of these people up before the committee. So today for the first day we have one witness who voluntarily is coming forward to testify. Your side ran away and we are trying to bring it to the American people. So, Mr. Cohen - Mr. Cohen >> Sir? Mr. Lynch >> Thank you for voluntarily coming before the committee to testify. 115600 >>I want to ask you about your statements regarding Trump Tower and Moscow, and I want to drill down some of the facts and details. Now you may not be aware of it, but this goes back a ways. Back in 1987, Mr. Trump wrote that he'd had ongoing discussions with Soviet officials back then to build a luxury, a large luxury hotel across from the Kremlin in partnership with the Soviet Union. So at that time it was the Soviet Union. 115632 >> I want to ask you, in your filing with the special counsel, Mueller's office, the prosecutors wrote and I quote, Mr. Cohen discussed the status and progress of the Moscow project with individual 1 on more than the three occasions Mr. Cohen claimed to the committee and he briefed family members of individual 1 with the company about the project. I know this is redundant, but Mr. Cohen, 115700 >>who were you referring to here when we refer to individual 1? Mr. Cohen >> Donald J. Trump. Mr. Lynch >> Okay. And the company? Mr. Cohen >> The Trump organization through a subsidiary. Mr. Lynch >> Okay. And who were the family members that you briefed on the Trump tower Moscow project? Mr. Cohen >> Don Trump Jr. And Ivanka Trump. Mr. Lynch >> Okay. Now were these in the regular course of business or did the president or family request the briefings? Mr. Cohen >> This is in the regular course of business. Mr. Lynch >> Do you recall, there is a question on the number of briefings, 115731 >>do you recall how many there might have been? Mr. Cohen >> I'm sorry, sir? Mr. Lynch >> Do you recall how many of these briefings there might have been? Mr. Cohen >> Approximately ten in total. Mr. Lynch >> All right. In your written remarks you also wrote and I quote, there were at least a half dozen times between the Iowa caucus in January 2016 and the end of June when Mr. Trump would ask me, how is it going in Russia referring to the Russia Moscow tower project. How did the president communicate those questions to you? Was it verbally or over the phone? 115803 Mr. Cohen >> Verbally most of the time. Virtually all of the time. It would -- he said say Michael -- he was reading to say a rally or to a car as I would walk him to the elevator he would ask me questions quickly regarding a series of issues. Mr. Lynch >> Could you tell what he was referring to in terms of the project in Russia? Mr. Cohen >> No, this would be it. Otherwise there would be no reason to ask it of me. Mr. Lynch 115829 >> Right. Right. You also wrote and I quote, to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it, closed quote. How did the president actually direct the negotiations? What details did he direct? Mr. Cohen >> Well, after each communication that I had I would report back to him and our goal was to get this project. We were interested in building what 115900 >> would have been the largest building in all of Europe. Sir, I -- if I can say one last thing. Mr. Lynch >> Please, go ahead. Mr. Cohen >> -- In regard to the gentleman's statements since this is on topic. The lies that I told to Congress in fairness, benefited Mr. Trump. It was in furtherance of my protection of Mr. Trump which I stated in my testimony, and I am not protecting Mr. Trump anymore, and so while I truly 115931 >> appreciate taking some of your time, to attack me every single time about taxes, I have no credibility, it's for exactly that reason that I spent the last week searching boxes in order to find the information that I did. So that you don't have to take my word for it. I don't want you to. I want you to look at the documents. I want you to make your own decision. Mr. Lynch >> I need my last minute. Mr. Cohen >> sorry, sir. Mr. Lynch >> That's okay. Let me just say

0930 COHEN HRG SWITCH FS10 73 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump Michael Cohen Testifies Before House Oversight Committee 2/27/19 Michael Cohen, President Trump's former lawyer, testifies before the House Oversight and Reform Committee about various investigations related to the 2016 Trump presidential campaign. 10:01:50 Mr. Cummings >> The committee will come to order. Without objection the chair is authorized to declare a recess of the committee at any time. The full committee hearing will hear the testimony of Michael Cohen, former attorney to president Donald Trump. Mr. Meadows >> Mr. Chairman, I have a point of order. Mr. Cummings >> State your point of order. Mr. Meadows >> Rule F, rule 9 F of the committee rules say that any testimony from your witness needs to be here 24 hours in advance. The committee, the chairman knows well that at 10:08 we received the written testimony and then we received evidence this morning at 7:54. Now, if this was just an oversight, Mr. Chairman, I could look beyond it, 100242 but it was an intentional effort by this witness and his advisors to once again show his disdain for this body. And with that, I move that we postpone this hearing. >> Second. Mr. Cummings >> I want to thank the gentleman. 100307 Mr. Cummings >> Let me say this, that we got the testimony late last night. We did. And we got it to you all pretty much the same time that we got it. I want to move forward with this hearing. Mr. Meadows >> Mr. Chairman, with all due respect, Mr. Chairman, this is a violation of the rule and if it was not intentional, I would not have a problem. I'm not saying it was intentional on your part. 100337 I'm saying it's intentional on his part, because Mr. Dean last night on a cable news network actually made it all very evident. John Dean. And I'll quote, Mr. Chairman. He said, as a former committee council in the house judiciary 100356 committee and then a long-term witness sitting alone at the table is important. Quote, holding your statement as long as you can so the other side can't chew it up is important as well, close quote. So it was advised that our witness got for this particular body -- and Mr. Chairman, when you were in the minority, you wouldn't have stood for it and I can tell you that we should not stand for it as a body. 100424 Mr. Cummings >> Let me say this. >> Mr. Chairman -- Mr. Cummings >> Yes. Ms. Hill >> I move to table. >> Mr. Chairman? Mr. Cummings >> Is there a second? >> Mr. Chairman, I was asked to be recognized before the motion. 100440 Mr. Cummings >> The vote is so in tabling the motion -- >> You know who had this material before all the members of the committee? CNN had it before we did. Mr. Cummings >> Sir -- >> CNN had the excerpts before we did. Mr. Cummings >> Sir. >> I just want to be recognized. Mr. Cummings >> Yeah. Well, the vote is on tabling the motion to postpone. All in favor, say aye. >> Aye. 100457 Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I appeal the ruling of the chair. >> It's not a ruling of the chair. Mr. Meadows >> I can assure you it's in the rules. I appeal the ruling of the chair. >> Do the rules matter, Mr. Chairman? 100511 Mr. Cummings >> I recognize the gentle lady. Mr. Hill >> Move to waive the rules, move to table. >> Chairman -- Mr. Cummings >> The vote -- >> She made two motions. What's the motion? Mr. Cummings >> The vote is on tabling -- 100529 >> I move to table the appeal to the ruling of the chair. Mr. Cummings >> The vote is on that. All in favor say aye. >> Aye. Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I ask for a recorded vote, Mr. Chairman. Mr. Cummings >> Very well. The clerk will call the role. 100558 Mr. Cummings >> Yes. Clerk >> Mr. Cummings votes yes. Ms. Maloney? Ms. Maloney >> Yes. >> Ms. Maloney votes yes. Ms. Norton? Ms. Norton >> Yes. Clerk >> Ms. Norton votes yes. Mr. Clay? Mr. Clay >> Yes. Clerk >> Mr. Clay votes yes. Mr. Lynch? Mr. Lynch >> Aye. Clerk >> Mr. Lynch votes yes. Mr. Cooper? Mr. Cooper >> Aye. Clerk >> Mr. Cooper votes yes. Mr. Connolly? Mr. Connolly >> Aye. Clerk >> Mr. Connolly votes yes. Mr. Krishnamoorthi? Mr. Krishnamoorthi >> Aye. Clerk >> Mr. Christian Murphy votes yes. Mr. Raskin? Mr. Raskin >> Aye. Clerk >> Mr. Raskin votes yes. Mr. Rouda. Mr. Rouda >> Aye. Clerk >> Mr. Rouda votes yes. Ms. Hill? 100632 Ms. Hill >> Yes. Clerk >> Ms. Hill votes yes. Ms. Wasserman Shultz Ms. Wasserman Shultz >> Yes. Clerk >> Ms. Wasserman Shultz votes yes. Mr. Sarbanes? Mr. Sarbanes >> Yes. Clerk >> Mr. Sarbanes votes yes. Mr. Welch? Mr. Welch >> Mr. Welch votes yes. Ms. Speier? Ms. Speier >>Yes. Clerk >> Ms. Speier votes yes. Ms. Kelly? Ms. Kelly >> Yes. Clerk >> Ms. Kelly votes yes. Mr. DeSaulnier? Mr. DeSaulnier >> Yes Clerk >> Mr. DeSaulnier votes yes. Ms. Lawrence? Ms. Lawrence >> Aye. Clerk >> Ms. Lawrence votes yes. Ms. Plaskett? Ms. Plaskett >> Yes. Clerk >> Ms. Plaskett votes yes. Mr. Khanna? Mr. Khanna >> Yes 100659 Clerk >> Mr. Khanna votes yes. Mr. Gomez? Mr. Gomez >> Aye. Clerk >> Mr. Gomez votes yes. Ms. Ocasio Cortez? Ms. Ocasio Cortez >> Aye. Clerk >> Ms Ocasio Cortez votes yes. Ms. Pressley? Ms. Pressley >>Yes Clerk >> Ms Pressley votes yes. Ms. Tlaib? Ms. Tlaib >> Yes Clerk >> Ms. Tlaib votes yes. Mr. Jordan? Mr. Jordan >> No. Clerk >> Mr. Jordan votes no. Mr. Amash? Mr. Amash >> No Clerk >> Mr. Amash votes no. Mr. Gosar? Mr. Gosar >> No Clerk >> Mr. Gosar votes no. Ms. Foxx? Ms. Foxx >> No. Clerk >> Ms. Foxx votes no. Mr. Massie? Mr. Massie >> No. Clerk >> Mr. Massie votes no. Mr. Meadows? 100731 Mr. Meadows >> No. Clerk >> Mr. Meadows votes no. Mr. Hice? Mr. Hice >>No. Clerk >> Mr. Hice votes no. Mr. Grothman? Mr. Grothman >> No Clerk >> Mr. Grothman votes no. Mr. Comer? Mr. Comer >> No Clerk >> Mr. Commer votes no. Mr. Cloud? Mr. Cloud >> No. Clerk >> Mr. Cloud votes no. Mr. Gibbs? Mr. Gibbs >> No Mr. Gibbs >> No Clerk >> Mr. Gibbs votes no. Mr. Higgins? Mr. Norman? Mr. Norman >> No Clerk >> Mr. Norman votes no. Mr. Roy Mr. Roy >> No. Clerk >> Mr. Roy votes no. Ms. Miller? Ms. Miller >> No Clerk >> Ms. Miller votes no. Mr. Green? Mr. Green >> No 100800 Clerk >> Mr. Green votes no. Mr. Armstrong? Mr. Armstrong >> No Clerk >> Mr. Armstrong votes no. Mr. Steube? Mr. Steube >> No. Clerk >> Mr. Steube votes no. 100816 Clerk >> On this vote we have 24 yes's, 17 no's. Mr. Cummings >> Motion to table is agreed to. Let me say this. You've made it clear that you do not want the American people to hear what Mr. Cohen has to say. But the American people are right to hear him. 100842 >> So we're going to proceed. The American people can judge his credibility for themselves. Now - >> Mr. Chairman? Mr Cummings >> Yes? >> We did not say that. We just said we wanted to follow the rules. We didn't say stop the hearing we just said postpone it so we could get his testimony and the exhibits when we were supposed to get them according to the rules of this committee. That's all we said. We didn't say we didn't want to hear from the guy. 100907 Mr. Cummings >> Reclaiming my time. Reclaiming my time. I now recognize myself for five minutes to give an opening statement. Today the committee will hear the testimony of Michael Cohen, president Donald Trump's long-time personal attorney and one of his closest and most trusted advisors over the last decade. On August 21st, Mr. Cohen appeared in federal court and admitted to arranging secret payoffs of hundreds of thousands of dollars on the eve of the election to silence women alleged affairs with Donald Trump. Mr. Cohen admitted to violating campaign finance laws and other 101004 laws. He admitted to committing these felonies, quote, in coordination with and at the direction of, unquote, President Trump. And he admitted, he admitted to lying about his actions to protect the president. Some will certainly ask if Mr. Cohen was lying then, why should we believe him now? This is a legitimate question. 101039 As a trial lawyer for many years, I have faced this situation over and over again and I asked the same question. Here is how I view our role. Every one of us in this room has a duty to serve as an independent check on the executive branch. Ladies and gentlemen, we are in search of the truth. 101108 The president has made many statements of his own, and now the American people have a right to hear the other side. They can watch Mr. Cohen's testimony and make their own judgment. We received a copy of Mr. Cohen's written statement late last night. It includes not only personal eyewitness accounts of meetings with Donald Trump as president inside the oval office, but it also includes documents and other corroborating evidence for some of Mr. Cohen's statements. 101150 For example, Mr. Cohen has provided a copy of a check sent while President Trump was in office with Donald Trump's signature on it to reimburse Mr. Cohen for the hush money payment to Stormy Daniels. This new evidence raises a host of troubling legal and ethical concerns about the president's actions in the white house and before. Would you all close that door, please? Thank you. 101235 This check is dated August 1st, 2017. Six months later, in April of 2018, the president denied anything about it. In April of 2018, President Trump was flying on air force one when a reporter asked him the question: Did you know about $130,000 payment to stormy Daniels? 101311 The answer was, quote, no. A month after that, the president admitted to making payments to Mr. Cohen, but claimed they were part of a, quote, a monthly retainer, unquote, for legal services. This claim fell apart in August when federal prosecutors concluded, and I quote, in truth and in fact, there was no such retainer agreement, end of quote. Today, we will also hear Mr. Cohen's account of a meeting in 2016 in Donald Trump's office during which Roger Stone said over speakerphone that he had just spoken with Julian assange, 101400 who said there would be a, quote, massive dump of e-mails that would damage Hillary Clinton's campaign, end of quote. According to Cohen, Mr. Trump replied, quote, wouldn't that be great, end of quote. The testimony that Michael Cohen will provide today, ladies and gentlemen, is deeply disturbing and it should be troubling to all Americans. 101431 We will all have to make our own evaluation of the evidence and Mr. Cohen's credibility. As he admits, he has repeatedly lied in the past. I agree with ranking member Jordan that this is an important factor we need to weigh, but we must weigh it and we must hear from him. But where I disagree fundamentally 101501 with the ranking member involves his efforts to prevent the American people from hearing from Mr. Cohen. Mr. Cohen's testimony raises grave questions about the legality of president Donald Trump's conduct and the truthfulness of statements while he was president. We need to assess and investigate this new evidence as we uphold our constitutional oversight responsibilities. 101536 And we will continue after today to gather many documents and testimony in our search for the truth. I have made it abundantly clear to Mr. Cohen that if he comes here today and he does not tell us the truth, I will be the first one to refer those untruthful statements to DOJ. So when people say he doesn't have anything to lose, he has a lot to lose if he lies. And the American people, by the 101612 way, voted for accountability in November, and they have a right to hear Mr. Cohen in public so they can make their own judgments. Mr. Cohen's testimony is the beginning of the process, not the end. Ladies and gentlemen, the days of this committee protecting the president at all costs are over. They're over. Before I close, I want to comment about the scope of today's hearing. 101648 At the request of the house intelligence committee and my very good friend Adam Schiff, congressman Adam Schiff, the chairman, I intended over the objections of the ranking member of our committee to limit the scope of today's hearing to avoid questions about Russia. However, Mr. Cohen's written testimony, in his written testimony, he's made statements 101715 relating to Russia. And these are topics that we understand do not raise concern from the department of justice. So in fairness to the ranking member and all committee members, we will not restrict questions relating to the witness's testimony or related questions he is willing to answer. 101739 Finally, I remind members that we will need to remain mindful of those areas where there are ongoing department of justice investigations. Those scoping limitations have not changed. Finally and to Mr. Cohen, Martin Luther King, Mr. Cohen, said some words that I leave with you today before you testify. He said, faith is taking the first step even when you can't 101815 see the whole staircase. There comes a time when silence becomes betrayal. Our lives begin to end the day we become silent about things that truly matter. In the end, he says, we will remember not the words of our enemies, but the silence of our friends. And with that, I yield to the distinguished gentleman, the ranking member of our committee, Mr. Jordan. 101851 Mr. Gosar (?) >> Mr. Chairman, point of parliamentary inquiry? >> Yes. Mr. Jordan is recognized for his opening statement. 101902 Mr. Jordan >> Mr. Chairman, here we go. Here we go. Your first big hearing, your first announced witness, Michael Cohen. I want everyone in this room to think about this. The first announced witness for the 116th congress is a guy who is going to prison in two months for lying to congress. Mr. Chairman, your chairmanship will always be identified with this hearing and we all need to understand what this is. This is the Michael Cohen hearing presented by Lanny Davis. That's right, Lanny Davis choreographed the whole darn thing, the Clintons' best friend, loyalist, operative, Lanny Davis put this all together. 101942 You know how we know? He told the committee staff. He said the hearing was his idea. He selected this committee. He had to talk Michael Cohen into coming. And most importantly, he had to persuade the chairman to actually have it. He told us it took two months to get that job done. But here we are. He talked him into it. This might be the first time someone convicted of lying to congress has appeared again so quickly in front of congress. Certainly it's the first time a convicted perjurer has been brought back to be a star witness in a hearing. 102016 And there's a reason this is a first, because no other committee would do it. Think about this. With Mr. Cohen here, this committee -- we got lots of lawyers on this committee. This committee is actually encouraging a witness to violate attorney/client privilege. Mr. Chairman, when we legitimize dishonesty, we delegitimize this institution. We're supposed to pursue the truth, but you have stacked the deck against the truth. We're only allowed to ask certain questions even with that amendment you just told us about, Russia is now on the table. 102049 You initially told us we can't ask questions about the special council, can't ask questions about the southern district of new York, can't ask questions about Russia. Nope, nope. Only subjects we can talk about are ones you think are going to be harmful to the president of the United States. And the answers to those questions are going to come from a guy who can't be trusted. Here's what the U.S. Attorney said about Mr. Cohen. While Mr. Cohen enjoyed a 102116 privileged life, his desire for ever greater wealth and influence precipitated an extensive course of criminal conduct. Mr. Cohen committed four distinct federal crimes over a period of several years. He was motivated to do so by personal greed and repeatedly, repeatedly used his power and influence for deceptive ends. But the Democrats don't care. 102142 They don't care. They just want to use you, Mr. Cohen. You're their Patsy today. They've got to find somebody somewhere to say something so they can try to remove the president from office. Because Tom Steyer told them to. Tom Steyer last week organized a town hall. Guess where? Chairman Nadler's district in Manhattan. Two nights ago Tom Steyer organized a town hall. Guess where? Chairman Cummings' district in Baltimore. 102214 The best they can find to start this process, Michael Cohen. Fraudster, cheat, convicted felon and in two months a federal inmate. Actually they didn't find him. Lanny Davis found him. I'll say one thing about the Democrats. They stick to the play book. Remember how all this started. The Clinton campaign hired Perkins Coie law firm, who hired Glenn Simpson who hired a foreigner Christopher Steele who put together the fake dossier that the FBI used to get a warrant to spy on the trump campaign. 102252 But when that whole scheme failed and the American people said we're going to make Donald Trump president, they said we've got to do something else. So now Clinton loyalist, Clinton operative Lanny Davis has persuaded the chairman of the oversight committee to give a convicted felon a forum to tell stories and lie about the president of the United States so they can all start their impeachment process. 102320 Mr. Chairman, we are better than this. We are better than this. I yield back. Mr. Cummings, Chairman 102331 >> I wanted to note -- Mr. Jordan >> Mr. Chairman, actually I have a motion. Mr. Cummings, Chairman >> You yielded back. Mr. Jordan >> I have a motion. I have a motion under rule 2 K 6 of rule 11. Mr. Cummings, Chairman >> You yielded back, sir. You yielded back. Mr. Jordan >> Mr. Chairman, you took seven minutes. I took four. Mr. Cummings, Chairman >> The gentleman yielded back. Mr. Jordan >> That's how you're going to operate? First you don't follow the rules. And now you're going to say- Mr. Cummings, Chairman >> Your point of order. 102358 Mr. Jordan >> You get to deviate from the rules. I just have a simple motion, Mr. Chairman. Mr. Cummings, Chairman >> Thank you. Mr. Jordan >> I wanted to order to have the testimony 24 hours in advance. Mr. Cummings, Chairman >> Excuse me. I wanted to note that under rule 11 clause 4 on media and photographers must be officially credentialed to record these proceedings and take photographs. I also wanted to briefly say to the spectators in the hearing room today. We welcome you and we respect your right to be here. We also ask in turn for your respect as we proceed with the business of the committee today. 102440 It is the intention of the committee to proceed without any disruptions, any disruptions of this committee will result in the United States capitol police restoring order and protesters will be removed. We are grateful for your presence here today and your cooperation. Now I want to welcome Mr. Cohen and thank him for participating in today's hearing. Mr. Cohen, if you would please rise, I will begin to swear you in. Raise your right hand. Do you swear or affirm that the testimony that you are about to give is the whole truth and 102521 nothing but the truth, so help you god? Let the record show that the witness answered in the affirmative. Thank you and you may be seated. The microphones are sensitive so please speak directly into them. Without objection, your written statement will be made a part of the record. With that, Mr. Cohen, you are now recognized to give an oral presentation of your testimony. Is your Mike on? MR. COHEN OPENING STATEMENT 102554 >> Yes. Chairman Cummings, ranking member Jordan and members of the committee, thank you for inviting me here today. I have asked this committee to ensure that my family be protected from presidential threats and that the committee be sensitive to the questions pertaining to ongoing investigations. I thank you for your help and for your understanding. I am here under oath to correct the record to answer the committee's questions truthfully and to offer the American people 102631 what I know about president Trump. I recognize that some of you may doubt and attack me on my credibility. It is for this reason that I have incorporated into this opening statement documents that are irrefutable and demonstrate that the information you will hear is accurate and truthful. 102658 Never in a million years did I imagine when I accepted a job in 2007 to work for Donald Trump that he would one day run for the presidency, to launch a campaign on a platform of hate and intolerance and actively win. I regret the day I said yes to Mr. Trump. I regret all the help and support I gave him along the way. 102726 I am ashamed of my own failings and publicly accepted responsibility for them by pleading guilty in the southern district of New York. I am ashamed of my weakness and my misplaced loyalty, of the things I did for Mr. Trump in an effort to protect and promote him. I am ashamed that I chose to take part in concealing Mr. Trump's elicit acts, rather than listening to my own conscience. 102758 I am ashamed because I know what Mr. Trump is. He is a racist, he is a conman, and he is a cheat. He was a presidential candidate who knew that Roger Stone was talking with Julian Assange about a wikileaks drop on democratic national committee e-mails. I will explain each in a few moments. 102830 I am providing the committee today with several documents. These include a copy of the check Mr. Trump wrote from his personal bank account after he became president to reimburse me for the hush money payments I made to cover up his affair with an adult film star and to prevent damage to his campaign. Copies of financial statements from 2011, 2012 and 2013, that he gave to such institutions such as Deutsche Bank. 102905 A copy of an article with Mr. Trump's handwriting on it that reported on the auction of a portrait of himself that he arranged for the bidder ahead of time and then reimbursed the bidder from the account of his nonprofit charitable foundation with the picture now hanging in one of his country clubs. And copies of letters I wrote at Mr. Trump's direction that threatened his high school, colleges and the college board not to release his grades or S.A.T. Scores. 102944 I hope my appearance here today, my guilty plea and my work with law enforcement agencies are steps along a path of redemption that will restore faith in me and help this country understand our president better. And before going further, I want to apologize to each member, to you as congress as a whole. The last time I appeared before congress, I came to protect Mr. Trump. Today I am here to tell the truth about Mr. Trump. 103021 I lied to congress when Mr. Trump stopped negotiating the Moscow tower project in Russia. I stated that we stopped negotiating in January of 2016. That was false. Our negotiations continued for months later during the campaign. Mr. Trump did not directly tell me to lie to congress. That's not how he operates. In conversations we had during the campaign, 103054 at the same time I was actively negotiating in Russia for him, he would look me in the eye and tell me there's no Russian business and then go onto lie to the American people by saying the same thing. In his way, he was telling me to lie. There were at least a half a dozen times between the Iowa caucus in January of 2016 and the end of June when he would ask me, how's it going in Russia? 103127 referring to the Moscow tower project. You need to know that Mr. Trump's personal lawyers reviewed and edited my statement to congress about the timing of the Moscow tower negotiations before I gave it. So to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it. He lied about it because he never expected to win. 103159 He also lied about it because he stood to make hundreds of millions of dollars on the Moscow real estate project. And so I lied about it too, because Mr. Trump had made clear to me through his personal statements to me that we both knew to be false and through his lies to the country that he wanted me to lie. And he made it clear to me because his personal attorneys reviewed my statement before I gave it to congress. 103234 Over the past two years, I have been smeared as a rat by the president of the United States. The truth is much different. Let me take a brief moment to introduce myself. My name is Michael Dean Cohen. I am a blessed husband of 24 years and a father to an incredible daughter and son. When I married my wife, I promised her that I would love her, I would cherish her and I would protect her. 103308 As my father said countless times throughout my childhood, you my wife and you my children are the air that I breathe. So to my Laura and my Sammy and my Jake, there's nothing I wouldn't do to protect you. I have always tried to live a life of loyalty, friendship, generosity and compassion. It's qualities my parents ingrained in my siblings and me since childhood. 103338 My father survived the holocaust thanks to the compassion and selfless acts of others. He was helped by many who put themselves in harm's way to do what they knew was right. And that is why my first instinct has always been to help those in need. Mom and dad, I am sorry I let you down. As the many people that know me best would say, I am the person that they call at 3:00 A.M. If they needed help. 103414 And I proudly remember being the emergency contact for many of my children's friends when they were growing up because their parents knew that I would drop everything and care for them as if they were my own. Yet last fall I plead guilty in federal court to felonies for the benefit of, at the direction of and in coordination with individual number one. And for the record, individual number one is president Donald J. Trump. 103455 It is painful to admit that I was motivated by ambition at times. It is even more painful to admit that many times I ignored my conscience and acted loyal to a man when I should not have. Sitting here today, it seems unbelievable that I was so mesmerized by Donald Trump that I was willing to do things for him that I knew were absolutely wrong. For that reason, I have come here to apologize to my family, to my government and to the American people. 103532 Accordingly, let me now tell you about Mr. Trump. I got to know him very well, working very closely with him for more than ten years as his executive vice president and special counsel and then as personal attorney when he became president. When I first met Mr. Trump, he was a successful entrepreneur, a real estate giant and an icon. Being around Mr. Trump was intoxicating when you were in his presence, you felt like you were involved in something greater than yourself, that you were somehow changing the world. 103613 I wound up touting the trump narrative for over a decade. That was my job, always stay on message, always defend. It monopolized my life. At first, I worked mostly on real estate developments and other business transactions. Shortly thereafter, Mr. Trump brought me into his personal life and private dealings. Over time I saw his true character revealed. Mr. Trump is an enigma. 103648 He is complicated, as am I. He is both good and bad, as do we all. But the bad far outweighs the good. Since taking office, he has become the worst version of himself. He is capable of behaving kindly, but he's not kind. He is capable of committing acts of generosity, but he is not generous. He is capable of being loyal, but he is fundamentally disloyal. Donald Trump is a man who ran for office to make his brand great, 103725 not to make our country great. He had no desire or intention to lead this nation, only to market himself and to build his wealth and power. Mr. Trump would often say, this campaign was going to be the greatest infomercial in political history. He never expected to win the primary. He never expected to win the general election. The campaign for him was always a marketing opportunity. 103800 I knew early on in my work for Mr. Trump that he would direct me to lie to further his business interests. I am ashamed to say that when it was for a real estate mogul in the private sector, I considered it trivial. As the president, I consider it significant and dangerous. But in the mix, lying for Mr. Trump was normalized and no one around him questioned it. In fairness, no one around him today questions it either. 103834 A lot of people have asked me about whether Mr. Trump knew about the release of the hacked documents, the democratic national committee e-mail ahead of time. And the answer is yes. As I earlier stated, Mr. Trump knew from Roger Stone in advance about the wikileaks drop of e-mails. In July of 2016, days before the democratic convention, I was in Mr. Trump's office when his secretary announced that Roger Stone was on the phone. 103908 Mr. Trump put Mr. Stone on the speakerphone. Mr. Stone told Mr. Trump that he had just gotten off the phone with Julian Assange and that Mr. Assange told Mr. Stone that within a couple of days there would be a massive dump of e-mails that would damage Hillary Clinton's campaign. Mr. Trump responded by stating to the effect, wouldn't that be great. 103937 Mr. Trump is a racist. The country has seen Mr. Trump court white supremacists and bigots. You have heard him call foreign countries shitholes. His private, in private, he is even worse. He once asked me if I could name a country run by a black person that wasn't a shithole. This was when Barack Obama was president of the United States. 104006 While we were once driving through a struggling neighborhood in Chicago, he commented that only black people could live that way. And he told me that black people would never vote for him because they were too stupid. And yet I continued to work for him. Mr. Trump is a cheat. As previously stated I am giving to the committee today three 104037 years of Mr. Trump's personal financial statements from 2011, 2012 and 2013, which he gave to Deutsche Bank to inquire about a loan to buy the Buffalo bills and to Forbes. These are exhibits 1a, 1b and 1c to my testimony. It was my experience that Mr. Trump inflated his total assets when it served his purposes, such as trying to be listed among the wealthiest people in portion. And deflated his assets to reduce his real estate taxes. 104117 I'm sharing with you two newspaper articles side by side that are examples of Mr. Trump inflating and deflating his assets, as I said, to suit his financial interests. These are exhibit 2 to my testimony. As I noted, I am giving the committee today an article he wrote on and sent to me that reported on an auction of a portrait of Mr. Trump. This is exhibit 3a to my testimony. Mr. Trump directed me to find a straw bidder 104153 to purchase a portrait of him that was being auctioned off at an art Hamptons event. The objective was to ensure that this portrait, which was going to be auctioned last, would go for the highest price of any portrait that afternoon. The portrait was purchased by the fake bidder for $60,000. Mr. Trump directed the trump foundation, which is supposed to be a charitable organization, to repay the fake bidder despite keeping the art for himself. 104227 Please see exhibit 3b to my testimony. And it should come as no surprise that one of my more common responsibilities was that Mr. Trump directed me to call business owners, many of whom are small businesses that were owed money for their services and told them that no payment or a reduced payment would be coming. 104253 When I asked Mr. Trump or when I told Mr. Trump of my success, he actually revelled in it. And yet I continued to work for him. Mr. Trump is a conman. He asked me to pay off an adult film star with whom he had an affair and to lie about it to his wife, which I did. And lying to the first lady is one of my biggest regrets, because she is a kind, good person, and I respect her greatly. 104329 And she did not deserve that. And I'm giving the committee today a copy of the $130,000 wire transfer from me to Ms. Clifford's attorney during the closing days of the presidential campaign that was demanded by Ms. Clifford to maintain her silence about her affair with Mr. Trump. This is exhibit 4 to my testimony. Mr. Trump directed me to use my own personal funds from a home equity line of credit to avoid any money being traced back to him that could negatively impact his campaign. 104411 And I did that too without bothering to consider whether that was improper, much less whether it was the right thing to do or how would it impact me, my family or the public. And I am going to jail in part because of my decision to help Mr. Trump hide that payment from the American people before they voted a few days later. As exhibit 5a to my testimony shows 104443 I am providing a copy of a $35,000 check that president Trump personally signed from his personal bank account on August 1st of 2017, when he was president of the United States, pursuant to the cover-up which was the basis of my guilty plea to reimburse me. The word used by Mr. Trump's TV lawyer for the illegal hush money I paid on his behalf. 104515 This $35,000 check was one of 11 check installments that was paid throughout the year while he was president. Other checks to reimburse me for the hush money payments were signed by Donald Trump Jr. And Alan weisselberg. See for that example 5b. 104540 The president of the united States thus wrote a personal check for the payment of hush money as part of a criminal scheme to violate campaign finance laws. You can find the details of that scheme directed by Mr. Trump in the pleadings in the U.S. District court for the southern district of New York. Picture this scene. In February of 2017, one month into his presidency, I'm visiting president Trump in the oval office for the first time, and it's truly awe inspiring. 104620 He's showing me all around and pointing to different paintings. And he says to me something to the effect of, don't worry, Michael, your January and February reimbursement checks are coming. They were fed exed from New York. And it takes a while for that to get through the white house system. As he promised, I received the first check for the reimbursement of $70,000 not long thereafter. 104650 When I say conman, I'm talking about a man who declares himself brilliant, but directed me to threaten his high school, his colleges and the college board to never release his grades or S.A.T. Scores. As I mentioned, I'm giving the committee today copies of a letter I sent at Mr. Trump's direction threatening these schools with civil and criminal actions if Mr. Trump's grades or S.A.T. Scores were ever disclosed without his permission. 104726 These are under exhibit 6. The irony wasn't lost on me at the time that Mr. Trump in 2011 had strongly criticized president Obama for not releasing his grades. As you can see in exhibit 7, Mr. Trump declared, let him show his records after calling president Obama a terrible student. The sad fact is that I never heard Mr. Trump say anything in private that led me to believe he loved our nation or wanted to make it better. 104805 In fact, he did the opposite. When telling me in 2008 or 2009 that he was cutting employee salaries in half, including mine, he showed me what he claimed was a $10 million irs tax refund, and he said that he could not believe how stupid the government was for giving someone like him that much money back. During the campaign, Mr. Trump said that he did not consider Vietnam veteran and prisoner of war 104839 senator John McCain to be a hero because he likes people who weren't captured. At the same time, Mr. Trump tasked me to handle the negative press surrounding his medical deferment from the Vietnam draft. Mr. Trump claimed it was because of a bone spur. But when I asked for medical records, he gave me none and said that there was no surgery. He told me not to answer the specific questions by reporters, 104913 but rather offer simply the fact that he received a medical deferment. He finished the conversation with the following comment: you think I'm stupid, I'm not going to Vietnam. And I find it ironic, Mr. President, that you are in Vietnam right now. And yet I continued to work for him. Questions have been raised about whether I know of direct evidence that Mr. Trump or his campaign colluded with Russia. I do not. 104949 And I want to be clear, but I have my suspicions. Sometime in the summer of 2017, I read all over the media that there had been a meeting in Trump Tower in June of 2016 involving don junior and others from the campaign with Russians, including a representative of the Russian government. 105011 In an e-mail setting up the meeting with the subject line "Dirt on Hillary Clinton." Something clicked in my mind. I remembered being in a room with Mr. Trump probably in early June of 2016 when something peculiar happened. Don trump Jr. Came into the room and walked behind his father's desk, which in and of itself was unusual. People didn't just walk behind Mr. Trump's desk to talk to him. And I recalled Don Junior leaning over to his father and speaking in a low voice, 105047 which I could clearly hear and saying, "The meeting is all set." I remember Mr. Trump saying, "Okay, good, let me know." What struck me as I look back and thought about the exchange between Don Junior and his father was, first, that Mr. Trump had frequently told me and others that his son Don Junior 105113 had the worst judgment of anyone in the world, and also that Don Junior would never set up any meeting of significance alone and certainly not without checking with his father. I also knew that nothing went on in Trump world, especially the campaign, without Mr. Trump's knowledge and approval. So I concluded that Don Junior was referring to that June 2016 trump tower meeting about dirt on Hillary with the Russian 105148 representatives when he walked behind his dad's desk that day. And that Mr. Trump knew that was the meeting Don Junior was talking about when he said, "That's good, let me know." Over the past year or so, I have done some real soul searching and I see now that my ambition and the intoxication of Trump power had much to do with the bad decisions in part that I made. 105220 And to you, Chairman Cummings and ranking member Jordan and the other members of this committee, the members of the house and senate, I am sorry for my lies and for lying to congress and to our nation, I am sorry for actively working to hide from you the truth about Mr. Trump when you needed it most. For those who question my motives for being here today, I understand. I have lied, but I am not a liar. I have done bad things, but I am not a bad man. 105258 I have fixed things, but I am no longer your fixer, Mr. Trump. And I am going to prison and have shattered the safety and security that I tried so hard to provide for my family. My testimony certainly does not diminish the pain that I have caused my family and my friends. Nothing can do that. And I have never asked for it, nor would I accept a pardon from President Trump. 105330 And by coming today, I have caused my family to be the target of personal, scurrilous attacks by the President and his lawyer trying to intimidate me from appearing before this panel. Mr. Trump called me a rat for choosing to tell the truth, much like a mobster would do when one of his men decides to cooperate with the government. As exhibit 8 shows, I have provided the committee with copies of tweets that Mr. Trump posted, attacking me and my family. 105407 Only someone burying his head in the sand would not recognize them for what they are. It's encouragement to someone to do harm to me and my family. I never imagined that he would engage in vicious, false attacks on my family and unleash his TV lawyer to do the same. 105430 And I hope this committee and all members of Congress on both sides of the aisle make it clear that as a nation we should not tolerate attempts to intimidate witnesses before Congress and attacks on family are out of bounds and not acceptable. I wish to especially thank speaker Pelosi for her statements. That's exhibit 9. To protect this institution and me. 105500 And the chairman of the house permanent select committee on intelligence, Adam Schiff, and you Chairman Cummings for likewise defending the institution and my family against the attacks by Mr. Trump and also the many Republicans who have admonished the President as well. I am not a perfect man. I have done things I am not proud of and I will live with the consequences of my actions for the rest of my life. 105534 But today I get to decide the example that I set for my children and how I attempt to change how history will remember me. I may not be able to change the past, but I can do right by the American people here today. And I thank you for your attention and am happy to answer the committee's questions. 105557 Mr. Cummings >> Thank you very much, Mr. Cohen. I now recognize myself. Mr. Cohen, before I start, I want to make sure you really understand something. You have admitted lying to Congress, to this very body. And now you're going to prison for it. Do you, Mr. Cohen, recognize the gravity of your offenses? You are a lawyer, right? Mr. Cohen >> As of yesterday, I am no longer a lawyer. I have lost my law license amongst other things. 105631 Mr. Cummings >> But you understand the gravity of this moment? Mr. Cohen >> I most certainly do, Mr. Chairman. Mr. Cummings >> I want you to really hear this, Mr. Cohen. We will not tolerate lying to this congress by anybody. We're in search of the truth. Do you understand that? Mr. Cohen >> I do. Mr. Cummings >> Now, the president has also made numerous statements that turned out to be inaccurate. 105659 For example, he said he knew nothing about the hush money payments to Ms. Clifford. And his 2017 financial disclosure form said he never owed money to reimburse you for those payments. Yet, in your testimony, Mr. Cohen, you said that you met with the President in the oval office in February of 2017 and discussed his plans to reimburse you for money you paid. 105731 You say he told you, and I quote, "Don't worry, Michael, your January and February reimbursement checks are coming." Is that accurate? And was that in the oval office? Mr. Cohen >> The statement is accurate, but the discussions regarding the reimbursement occurred long before he became president. Mr. Cummings >> Would you explain that? 105801 Mr. Cohen >> Back in 2017 -- actually I apologize. In 2016 prior to the election, I was contacted by Keith Davidson, who was the attorney, or was the attorney for Ms. Clifford, for stormy Daniels. And after several rounds of conversations with him about purchasing her life rights 105830 for $130,000, what I did each and every time is go straight into Mr. Trump's office and discuss the issue with him. When it was ultimately determined -- and this was days before the election -- that Mr. Trump was going to pay the $130,000. In the office with me was Allen Weissleberg, the chief financial officer of the trump organization. 105900 >> He acknowledged to Allen that he was going to pay the 130,000 and that Allen and I should go back to his office and figure out how to do it. So yes, sir, I stand by the statement that I gave, but there was a history to it. Mr. Cummings >> In your testimony, you said you brought some checks, is that right? Mr. Cohen >> Yes, sir. Mr. Cummings >> Let me ask you about one of these. This 105930 >> This from the Trump Trust that holds the President's businesses, can you tell me who signed this check? Mr. Cohen >> I believe that the top signature is Donald Trump Jr. And that the bottom signature is, I believe, is Allen Weissleberg's. Mr. Cummings >> Can you tell me the date of that check? Mr. Cohen >> March 17th of 2017. 110001 Mr. Cummings >> Wait a minute. Hold up. The date on the check is after President Trump held his big press conference claiming that he gave up control of his businesses. How could the president have arranged for you to get this check if he was supposedly playing no role in his business? Mr. Cohen >> Because the payments were designed to be paid over the course of 12 months, and it was declared to be 110032 >> a retainer for services that would be provided for the year of 2017. Mr. Cummings >> Was there a retainer agreement? Mr. Cohen >> There was no retainer agreement. Mr. Cummings >> Would Don Junior or Mr. Weissleberg have more information about that? Mr. Cohen >> Mr. Weissleberg for sure about the entire discussions and negotiations prior to the election, and Don Junior would have cursory information. 110103 Mr. Cummings >> Now, here's another one. This one appears to be signed by Donald Trump himself. Is that his signature? Mr. Cohen >> That is Donald Trump's signature. Mr. Cummings >> So let me make sure I understand. Donald Trump wrote you a check out of his personal account while he was serving as President of the United States of America to reimburse you for hush money payments 110131 to Ms. Clifford. Is that what you are telling the American people today? Mr. Cohen >> Yes, Mr. Chairman. Mr. Cummings >> One final question. The President claimed he knew nothing about these payments. His ethics filing said he owed nothing to you. Based on your conversations with him, is there any doubt in your mind that President Trump knew exactly what he was paying for? 110201 Mr. Cohen >> There is no doubt in my mind and I truly believe there's no doubt in the people of the United States of America. Mr. Cummings >> These new documents appear to corroborate what you just told us. With that, I'll yield to the gentleman and ranking member. Mr. Jordan >> I will make sure that you and I meet one day while we're in the courthouse andly take you for every penny you still don't have and I will come after your daily beast and everybody else that you possibly know. 110232 So I'm warning you, tread very efing lightly because what I'm going to do to you is going to be efing disgusting, you understand me? Mr. Cohen, who said that? Mr. Cohen >> I did. Mr. Jordan >> And did you say that, Mr. Cohen, in your testimony on page two, you said you did things for Mr. Trump in an effort to protect him. Was that statement that I just read that you admitted to saying, did you do that to protect Donald Trump? 110301 Mr. Cohen >> I did it to protect Mr. Trump, Donald Trump Jr., Ivanka Trump and Eric Trump. Mr. Jordan >> In your sentencing statement back in December in front of the judge, you said this, Mr. Cohen, my weakness can be characterized as a blind loyalty to Donald Trump, a blind loyalty that led me to choose a path of darkness. Is that accurate, Mr. Cohen? Mr. Cohen >> I wrote that. Mr. Jordan >> You wrote that and said that in front of the judge, is that right? Mr. Cohen >> That's correct. 110329 Mr. Jordan >> Let me read a few other things here and let me ask you why you did some of these things. When you filed a false tax return in 2012, 2013, 2014, 2015 and 2016, was all that out of blind loyalty to the president? Mr. Cohen >> No, it was not. Mr. Jordan >> When you failed to report 4 million in income to the internal revenue service, did you do that to protect Donald Trump? Mr. Cohen >> No, I did not. Mr. Jordan >> And when you failed to pay 1.4 million in taxes -- 110402 >> I got constituents who don't make that in a lifetime. When you failed to pay 1.4 million in taxes to the U.S. Treasury was that out of blind loyalty to the president of the United States? Mr. Cohen >> It was not. But the number was 1.38 and change and I have paid that money back to the IRS. Mr. Jordan >> I think the American people appreciate that 1.38. Mr. Cohen >> I would also like to say it was over a course of five years, approximately 260,000 a year. 110433 Mr. Jordan >> That's what I said, 2012, 2013, 2014, 2015, that's five years. Mr. Cohen >> Yes. Mr. Jordan >> Got it. When you made false statements to financial institutions concerning a home equity line of Credit, Taxi medallions on your Park Avenue apartment in 2013, 2014, and 2015 and you plead guilty to making those false statements to those banks, was that all done to protect the president? Mr. Cohen >> No, it was not. 110459 Mr. Jordan >> How about this one. When you created the fake Twitter account women for Cohen and paid a firm to post tweets like this one, "In a world of lies, deception and fraud, we appreciate this honest guy @Michael Cohen, #tgif #handsome #sexy. Was that done to protect the president? Mr. Cohen >> Mr. Jordan I didn't actually set that up. It was done by a young lady that worked for red finch. During the course of the campaign which you would know, is somewhat crazy and wild, 110535 we were having fun. That's what it was, sir. We were having fun. Mr. Jordan >> Was it done to protect the president? Mr. Cohen >> That was not done to protect the president? Mr. Jordan >> Was it a fake Twitter account? >> No. It was a real Twitter account. It exists. >> You paid a firm to create this-- Mr. Cohen >> I didn't pay the firm. It was done by a young lady that worked for the firm. Again, sir, we were having fun during a stressful time. Mr. Jordan >> The point is Mr. Cohen did you lie to protect the president or did you lie to help yourself? 110601 Mr. Cohen >> I'm not sure how that helped me, sir. Mr. Jordan >> I'm not sure how it did either. Mr. Cohen >> Right. And I would like to also note that more than half the people on that site are men. Mr. Jordan >> Here's the point. The chairman just gave you a 30-minute opening statement and you have a history of lying over and over and over again. Frankly, you don't have to take my word for it. Take what the court said, take what the southern district of New York said. Cohen. did crimes that were marked by a pattern of deception and that permeated his professional life. 110635 These crimes were distinct in their harms but very common set of circumstances. They each involved deception and were each, each motivated by personal greed and ambition. A pattern of deception for personal greed and ambition. And you just got 30 minutes of an opening statement where you trashed the president of the United States of America. Mr. Cohen, how long did you work for Donald Trump? 110701 Mr. Cohen >> Approximately a decade. Mr. Jordan >> Ten years? Mr. Cohen >> That is correct. Mr. Jordan >> You said all these bad things about the president there in that last 30 minutes, and yet you worked for him for ten years? All those bad things -- I mean, if it's that bad, I can see you working for him for ten days, maybe ten weeks, maybe even ten months. But you worked for him for ten years. Mr. Cohen, how long did you work in the white house? 110730 Mr. Cohen >> I never worked in the white house. Mr. Jordan >> That's the point, isn't it, Mr. Cohen? Mr. Cohen >> No, sir. Mr. Jordan >> Yes, it is. Mr. Cohen >> No, it's not, sir. Mr. Jordan >> You wanted to work in the white house and you didn't get brought to the dance. Mr. Cohen >> Sir, I was extremely proud to be personal attorney to the president of the United States of America. I did not want to go to the white house. I was offered jobs. I can tell you a story of Mr. Trump reaming out Reince Priebus because I had not taken a job where Mr. Trump wanted me to, which is working with Don McGahn 110801 at the white house general counsel's office. One second. What I said at the time -- and I brought a lawyer in who produced a memo as to why I should not go in, because there would be no attorney/client privilege. And in order to handle some of the matters that I talked about in my opening, that it would be best suited for me not to go in and that every president had a personal attorney. Mr. Jordan >> Here's what I see. I see a guy who worked for ten years and is here trashing the guy he worked for for ten years, didn't get a job in the white house, and now you're behaving just like everyone else who got fired or didn't get the job they wanted like Andy Mccabe, like James Comey, same kind of selfish motivation after you don't get the thing you want. 110848 That's what I see here today and I think that's what the American people see. Mr. Cohen >> Mr. Jordan, all I wanted was what I got, to be personal attorney to the president, to enjoy the senior year of my son in high school and waiting for my daughter who is graduating from college to come back to New York. I got exactly what I want. Mr. Jordan >> Exactly what you want? Mr. Cohen >> That's right. Mr. Jordan >> You're going to prison. Mr. Cohen >> I received exactly what I wanted. 110914 Mr. Cummings, Chairman >> The gentleman's time has expired. Ms. Wasserman Schultz. Ms. Schultz >> Thank you, Mr. Chairman. Mr. Cohen, thank you for being here today. As you likely know, I served as the chair of the democratic national committee at the time of the Russian hacks and when Russia weaponized the messages it had stolen. But I want to be clear, My questions are not about the harm done to my individual by wikileaks and the Russians. 110941 It's about the possible and likely harm to the United States of America and our democracy. I have a series of questions that I hope will connect more of these dots. Mr. Cohen, is it your testimony that Mr. Trump had advanced knowledge of the Russia wikileaks release of the DNC's e-mails? Mr. Cohen >> I cannot answer that in a yes or no. He had advanced notice that there was going to be a dump of e-mails, but at no time did I hear the specificity of what those e-mails were going to be. 111015 Ms. Schultz >> But you do testify today that he had advanced knowledge of their imminent release. Mr. Cohen >> That is what I had stated in my testimony. Mr. Schultz >> And that he cheered that outcome? Mr. Cohen >> Yes, ma'am. Ms. Shultz >> Did Mr. Trump likely share this information with his daughter ivanka, son don junior or Jared Kushner? Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was ivanka, Jared or don junior still involved in the Russian tower deal at that time? 111044 Mr. Cohen >> The company was involved in the deal, which meant that the family was involved in the deal. Ms. Schultz >> If Mr. Trump and his daughter ivanka and son Donald junior are involved in the Russian trump tower deal, is it possible the whole family is conflicted or compromised with a foreign adversary in the months before the election? Mr. Cohen >> Yes. Ms. Schultz >> Based on your experience with the president and knowledge of his relationship with Mr. Stone, do you have reason to believe that the president explicitly or implicitly authorized Mr. Stone to make contact with wikileaks and to indicate the campaign's interest in the strategic release of these illegally hacked materials? 111122 Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was Mr. Stone a free agent reporting back to the president what he had done? Or was he an agent of the campaign acting on behalf of the president and with his apparent authority? Mr. Cohen >> No. He was a free agent. Ms. Schultz >> A free agent that was reporting back to the president what he had done? Mr. Cohen >> Correct. He frequently reached out to Mr. Trump, and Mr. Trump was very happy to take his calls. It was free service. Ms. Schultz >> Roger stone says he never spoke with Mr. Trump about wikileaks. How can we corroborate what you are saying? Mr. Cohen >> I don't know. But I suspect that the special counsel's office and other government agencies have the information that you're seeking. 111209 Ms. Schultz >> Moving on to a little later in 2016, a major wikileaks dump happens hours after the access Hollywood tape is released. Do you believe or are you aware of Mr. Trump coordinating or signaling for this e-mail dump? Mr. Cohen >> I'm unaware of that. I actually was not even in the country at the time of the Billy bush tape. I was in London visiting my daughter. Ms. Schultz >> Knowing how Mr. Trump operates with his winning at all costs mentality, do you believe that he would cooperate 111242 or collude with a foreign power to win the presidency? Is he capable of that? Mr. Cohen >> It calls on so much speculation, ma'am. It would be unfair for me -- Ms. Schultz >> You have a tremendous amount of experience. Mr. Cohen >> Mr. Trump is all about winning. He will do what is necessary -- Ms. Schultz >> And in your opinion and experience, would he have the potential to cooperate or collude with a foreign power to win the presidency at all costs? 11-13-13 Mr. Cohen >> Yes. Ms. Schultz >> Based on what you know, would Mr. Trump or did he lie about colluding and coordinating with the Russians at any point during the campaign? Mr. Cohen >> As I stated in my testimony, I wouldn't use the word colluding. Was there something odd about the back and forth praise with president Putin? Yes. But I'm not really sure that I can answer that question in terms of collusion. 111351 I was not part of the campaign. I don't know the other conversations that Mr. Trump had with other individuals. There's just so many dots that all seem to lead to the same direction. Ms. Schultz >> Finally, before my time expires, Mr. Cohen, the campaign and the entire trump organization appeared to be filthy with Russian contact. There are Russian business contacts, there are campaign Russian contacts, there are lies about all of those contacts, 111427 and then we have Roger stone informing the president just before the democratic national convention that wikileaks was going to drop documents in the public arena that we knew at that point were hacked and stolen by Russia from the democratic national committee. Mr. Cummings, Chairman >> The gentle lady's time has expired. Ms. Schultz >> My question is, given all these connections, is it likely that Donald Trump was fully aware and had every intent of working with Russia to help make sure that he could win the presidency at all costs? 111506 Mr. Cohen >> Let me say this is a matter that's currently being handled by the house select and the senate select intelligence committees. So I would rather not answer that specific question other than just the tell you that Mr. Trump's desire to win would have him work with anyone. And one other thing that I had said in my statement is that when it came to the trump tower Moscow project, 111540 it was worth hundreds of millions of dollars, and we never expected to win the election. So this was just business as usual. Ms. Schultz >> Thank you, Mr. Cohen. Thank you, Mr. Chairman. Mr. Green >> Thank you Mr. Chairman, ranking member Jordan. The chairman in this committee promised members of the american people a fair and open process, yet the Democrats have vastly limited the scope of this hearing. They've issued a gag order to try to tell members of this committee what we can and cannot talk about. My colleagues on the other side of the aisle claim they want the truth, that they want transparency and fair oversight. 111616 Yet the Democrats' witness to testify before congress today is none other than a sworn scorned man who's going to prison for lying to congress. Let that sink in. He's going to prison for lying to congress and he's going to prison for lying to congress and he's the star witness, to congress. If you read the sentencing report on Mr. Cohen, words like deceptive and greedy are scattered throughout that report. It paints a picture of a narcissist, a bully who cannot tell the truth about the president or about his own personal life. 111648 But today he's the majority party's star witness. If the Democrats were after the truth, they'd have an honest person here testifying. And if they were really after the truth, they'd not restrict the questioning to just a few topics. But let's take a look at those restricted topics. Mr. Chairman, the first topic in your limited scope that I can ask Mr. Cohen is about the president's debts. But Mr. Chairman didn't Mr. Cohen plead guilty to lying to banks about his personal finances? We're asking a guy going to jail for lying about his debts to comment about the president's debts. 111729 He's the expert. Mr. Chairman,your next couple of topics say I can ask Mr. Cohen about the president's compliance with financial disclosures and campaign finance laws but didn't Mr. Cohen on two occasions break campaign finance law with his own donation? Again, the majority party star witness on the president's compliance is a guy who broke compliance laws himself. Mr. Chairman, you graciously allow us to ask questions of Mr. Cohen on the president's dealings with the irs and tax law. 111802 Your star witness here broke the law with regards to the irs at least five times. He pled guilty on cheating on his taxes, lying to the irs. He's the best witness you got? Next up with the permission of the chairman I get to ask Mr. Cohen about his perspective on the president's business dealings. Let me get this straight. The witness lied to multiple financial institutions to get loans to pay off other loans just to keep himself afloat and he's going to be the expert on business practices. 111836 Obviously, Mr. Chairman, the witness may produce documents that he suggests incriminates the president, yet he lies to banks. All of those lies were done on fraudulent documents, documents that he forged. Nothing he says or produces has any credibility. Apparently he even lied about delivering his own child, which his wife had to correct the record. Ladies and gentlemen, how on Earth is this witness credible? 111905 With all the lies and deception, the self-serving fraud, it begs the question, what is the majority party doing here? No one can see this guy as credible. He will say whatever he wants to accomplish his own personal goals. He's a fake witness. And his presence here is a travesty. I hope the American people see through this. I know the people back in Tennessee will. And with that statement, sir, I have a few questions of the witness. 111937 With your loss of your law license, I think you mentioned in your opening statement that you had been disbarred. What is your source of income in the future? Mr. Cohen >> I don't expect I'm going to have a source of income when I'm in the federal penitentiary. Mr. Green >> Is there a book deal coming? >> I have no book deal in the process. I have been contacted by many including for television, a movie. If you want to tell me who you would like to play you, I'm more than happy to write the name down. I would also like to turn around and just to correct your statement on me -- 112014 Mr. Green >> Let me ask one other question, though. I only have a limited amount of time. Mr. Cohen No individual -- Mr. Green >> One quick question. Who paid your expenses to be here today? Mr. Cohen >> Who's paid my expenses? Mr. Green >> To be here today. Mr. Cohen >> I paid my expenses. Mr. Green >> Mr. Chairman, I'd like to yield the remainder of my time to the ranking member. Mr. Jordan >> Mr. Cohen, how many times did you talk to the special counsel's office? Mr. Cohen >> Seven. Mr. Jordan >> Did they talk to you at all in preparation for today's hearing between the seven times you talked to them prior to your sentencing, have you had any conversations with the special counsel's office between sentencing and today? 112050 Mr. Cohen >> I'm sorry I don't understand your question. Mr. Jordan >> You talked to them seven times in the sentencing memorandums in front of the court back in December. What I'm asking is how many times you've talked to the special counsel's office since then up to today's appearance here in congress? Mr. Cummings, Chairman >> The gentleman's time has expired. You may answer the question now. Mr. Cohen >> I'm sorry I don't have the answer to that. Mr. Cummings, Chairman >> Ms. Maloney. Mr. Jordan >> I'll come back to that. 11:21:13 Ms. Maloney >> Thank you, Mr. Chairman. Mr. Cohen, in your ten years of working for Donald Trump, did he control everything that went on in the trump organization? And did you have to get his permission in advance and report back after every meeting of any importance? Mr. Cohen >> Yes. There was nothing that happened at the trump organization, whether it was a response as the daily beast story that you referred to, ranking member, that did not go through Mr. Trump with his approval and sign-off as in the case of the payments. 112200 Ms. Maloney >> How many times did the president, Michael, ask you or direct you to try to reach settlements with women in 2015 and 2016? Mr. Cohen >> I'm sorry, ma'am. I don't have the answer to that. I'd have to go back and try and recollect. It's certainly the two that we know about. Ms. Maloney >> Why do you think the president did not provide the accurate information in his 2017 financial disclosure form? What was he trying to hide? He corrected other forms, but he didn't correct this one. 112242 Mr. Cohen >> The payments on the reimbursement of the funds that I extended on his behalf. Ms. Maloney >> Can you elaborate more? Mr. Cohen >> Well, going back into the story, as I stated when Alan weissleberg and I left the office and went to his office in order to make the determination on how the money was going to be wired to the Iola, the interest on a lawyer's account for Keith Davidson in California, I had asked Alan to use his money. 112314 Didn't want to use mine. He said he couldn't. We then decided how else we can do it. He asked me whether or not I know anybody who wants to have a party at one of his clubs that could pay me instead or somebody who may have wanted to become a member of one of the golf clubs. And I also don't have anybody who was interested in that. It got to the point where it was down to the wire. It was either somebody wire the funds and purchase the life rights to the story from Ms. Clifford, or it was going to end up being sold to television, and that would have embarrassed the president and it would have interfered with the election. 112402 Ms. Maloney >> But the president has never amended his 2017 form to this day. While you're facing the consequences of going to jail, he is not. Mr. Cohen >> I believe they amended a financial disclosure form and there's a footnote somewhere buried. I don't recall specifically what it says, but there is a footnote buried somewhere. Ms. Maloney >> Can you describe, Michael, to the American people catch-and-kill? Mr. Cohen >> Catch-and-kill is a method that exists when you're working with a news outlet. 112439 In this specific case it was AMI, national enquirer, David pecker, Dylan Howard and others, where they would contact me or Mr. Trump or someone and state that there's a story that percolating out there that you may be interested in. Then what you do is you contact that individual and purchase the rights to that story from them. Ms. Maloney >> And you practiced this for the president? Mr. Cohen >> I was involved in several of these catch-and-kill episodes. But these catch-and-kill scenarios existed between David pecker and Mr. Trump long before I started working for him in 2007. 112525 Ms. Maloney >> Michael, can you suggest who else this committee should talk to for additional information on this or anything else? Mr. Cohen >> Yes. I believe David pecker, Dylan Howard, Barry Levine of Ami as well. Alan weissleberg, Alan Garton of the trump organization as well. Ms. Maloney >> Thank you very much for your testimony. And Mr. Chairman, this is a story of redemption. Mr. Cohen >> Thank you, ma'am. 112554 Mr. Cummings, Chairman >> Mr. Comer. Mr. Comer >> Mr. Cohen, in your testimony you stated that you began work for the trump organization as a lawyer dealing with real estate transactions, is that correct? Mr. Cohen >> That is correct. Mr. Comer >> Prior to coming to congress, I served as a director of two different banks so I've seen hundreds of loan applications and to try to determine your credibility here today, I just wanted to ask you a couple of real estate transaction questions just to see how in fact you operate. During to the southern district of New York prosecutors, you lied to banks to secure loans by falsing stating the amount of debt you were carrying. Mr. Cohen my question to you, was it Donald Trump's fault that you knowingly committed a crime of deception to defraud a bank? 112637 Mr. Cohen >> No, it's not. Mr. Comer >> Was that fraudulent loan you obtained for the trump organization or for you personally? Mr. Cohen >> It would be for me, though I'm not familiar with which loan you're referring to. I would like to say one thing. Sorry, I would like to respond. Mr. Comer >> The loan -- Mr. Cohen >> When we're talking about the home equity line of credit which is what I believe you're referring to -- Mr. Comer >> We're also referring -- I'm going to ask a question pertaining to your summer home you purchased too. 112706 Mr. Cohen >> I never purchased a summer home. No individual on no bank in the 22 years that I've had loans have ever lost a dollar with me. I owe no money to my bank. Mr. Comer >> The banks usually find out when someone's trying to deceive them. Mr. Cohen >> In 22 years I have no money owed to any individual or bank. Mr. Comer >> Mr. Cohen, did you so-called blind loyalty to the president cause you to defraud the bank for your own personal gain? Mr. Cohen >> Sir I take exception to that because I never defrauded any bank. 112740 Mr. Comer >> Let's dig a little deeper on that, on the bank fraud. According to the southern district of New York you failed to disclose $20 million in liabilities as well as tens of thousands of dollars of monthly expenses. That's according to the southern district of New York. Mr. Cohen, you being a lawyer, surely you knew you were breaking the law. Why would you have done that? Mr. Cohen >> Sir I'm not a cpa. I plead guilty. I'm going to prison as a result of it. Mr. Comer >> Because you're a con? Mr. Cohen >> No, sir. Because I plead guilty and I am going to be doing the time. I have caused tremendous, tremendous pain to my family. And I take no happiness -- 112822 Mr. Comer >> Let's go back to one last question about the bank. When the bank found out about the liabilities that you failed to disclose, you lied again to the bank, this is according to the southern district of new York, and said it had been expunged when in fact you just shifted the debt to another bank. Apparently, according to the information that we received,your intent to defraud the bank was for the desire to purchase the summer home for $8.5 million. Mr. Cohen >> No, sir. That would have been off an equity line. 112856 Considering I had less than a 50% loan to value on the assets and it was a pre existing line of credit that existed years before the date that you're referring to where this is all surrounding New York City taxi medallions. Mr. Comer >>But you understand that when you failed to disclose liabilities, especially $20 million in liabilities that is in fact fraud. Mr. Cohen >> Except even with $20 million in liability Mr. Comer >> How much was it? 112928 Mr. Cohen >> The medallions were at that time worth over $45 million Mr. Comer >> Mr. Cohen, you called Donald Trump a cheat in your open testimony. What would you call yourself? Mr. Cohen >> A fool. Mr. Comer >> You calling -- okay. Well, no comment on that. Mr. Cohen >> I appreciate that. Mr. Comer >> Mr. Chairman, we said we were in search of the truth. I don't believe that Michael Cohen is capable of telling the truth. And I would hope that as this committee moves forward, that when we have the opportunity to subpoena witnesses, 113002 we subpoena witnesses that are not recently disbarred, are not convicted felon, and witnesses that haven't committed bank fraud and tax fraud. That is how we're going to determine the truth. Mr. Chairman, I yield the balance of my time to the ranking member. Mr. Jordan >> I would just make one point. We just had a five-minute debate where Mr. Cohen dispute what is the southern district of new York found, what the judge found, that he was actually guilty of committing bank fraud. 113030 >> If this statement back here doesn't say it all, Cohen's consciousness of wrongdoing is fleeting, his remorse is minimal/ His instinct is to blame others is strong. There is only one thing wrong with that statement. His remorse is non-existent. He just debated a member of congress saying I really didn't do anything wrong with the false bank things that I'm guilty and going to prison for -- Mr. Cohen >> Mr. Jordan, that's not what I said. And you know that's not what I said. Mr. Jordan >> Will the gentleman yield? Mr. Cohen >> I said that I pled guilty and I take responsibility for my actions. WASH 11 MICHAEL COHEN HEARING WITNESS CSPAN POOL P2 TV 31PGM MICHAEL COHEN HEARING ABC DIGITAL P2 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them? For $1.2 million how many times did you meet with them? 114000 Mr. Cohen >> I provided them with both in-person and telephone access whenever they needed it. Mr, Meadows >> How many times? That's a question. Mr. Cohen >> I don't recall sir. Mr. Meadows >> So did you ever talk to them? Mr. Cohen >> I spoke to them on several occasions. Mr. Meadows >> How many? Mr. Cohen >> Ugh, six times. Mr. Meadows >> Six times. Wow. $200,000 a call. Mr. Cohen >> Sir, I also would like to -- Mr. Meadows >> Hold on! This is my five minutes, Mr. Cohen. Not yours. Did you get money from the Bank of Kazakhstan? Mr. Cohen >> It's not a Bank of Kazakhstan. It's called BTA. 114032 Mr. Meadows >> BTA bank. Kazakhstan BTA bank. Did you get money from them? Mr. Cohen >> I did. Mr. Meadows >> For what purpose. Mr. Cohen >> The purpose was because the former CEO of that bank had absconded with between 4-6 billion dollars. And some of that money was here in the United States. And they sought my assistance in terms of finding, locating that money and helping them to recollect it. Mr. Meadows >> Are you saying that all the reports that you were paid in some estimates 114101 >> over $4 million to have access and understanding of the Trump administration -- you're saying all of that was just paid to you just because you're a nice guy? Mr. Cohen >> I am a nice guy, but more importantly -- Mr. Meadows >> I would beg to differ. The record reflects that you're not a nice guy. Mr. Cohen >> Sir, each and every contract contained the clause in my contracts that said I will not lobby and I do not do government relations work. In fact, in fact 114128 navardas sent me their contract which stated specifically that they wanted me to lobby, that they wanted me to provide access to government including the President. That information, that paragraph was crossed out by me, initialled and written in my own handwriting. It says, I will not lobby or do government relations work. Mr. Meadows >> So navardas representative say that it was like they were hiring a non registered lobbyist. So you disagree with that? Mr. Cohen >> I don't know what they said, sir, 114201 >> But the contract speaks for itself - Mr. Meadows >> Have you ever contacted anybody in the administration? Mr. Cohen >> Yes. Mr. Meadows >> To advocate on behalf of any aspect of any of your contracts? I ask unanimous consent, Mr. Chairman. I ask unanimous consent - Mr. Cummings >> The gentleman's time has expired. You may answer the question. Mr. Cohen >> I don't know what you're referring to, sir. Mr. Meadows >> Mr. Chairman -- Mr. Cummings >> Mr. Clay. 114230 Mr. Clay >> Thank you Mr. Chairman. Mr. Cohen, I'm pleased you agreed to testify today voluntarily. In my view, we are all here for just one reason, and that's the American people are tired of being lied to. They have been lied to by President Trump. They have been lied to by the president's children. They have been lied to by the President's legal representatives. And it pains me to say 114300 that they have been even lied to by his congressional enablers who are still devoted to perpetuating and protecting this giant con game on the American people. Now, Mr. Cohen, I'd like to talk to you about the President's assets since by law these must be reported accurately on his federal financial disclosure 114331 >> and when he submits them for a bank loan. Mr. Cohen, you served for nearly a decade as then businessman Trump's personal attorney and so-called fixer. Did you also have an understanding of the president's assets and how he valued those items? Mr. Cohen >> Yes. Mr. Clay >> In November of 2017, crane's New York business reported that 114401 >> the Trump organization provided, quote, flagrantly untrue revenue figures going back to at least 2010 to influence crane's ranking of the largest private companies in New York. According to the reports, while the Trump organization reported nearly $9.5 billion in revenues in 2016, public filings suggested revenues were actually less than 1/10 of that. 114432 >> To your knowledge, did the President or his company ever inflate assets or revenues? Mr. Cohen >> Yes. Mr. Clay >> Was that done with the president's ...

0930 COHEN HRG GOP ISO FS8 90 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 10:01:50 Mr. Cummings >> The committee will come to order. Without objection the chair is authorized to declare a recess of the committee at any time. The full committee hearing will hear the testimony of Michael Cohen, former attorney to president Donald Trump. Mr. Meadows >> Mr. Chairman, I have a point of order. Mr. Cummings >> State your point of order. Mr. Meadows >> Rule F, rule 9 F of the committee rules say that any testimony from your witness needs to be here 24 hours in advance. The committee, the chairman knows well that at 10:08 we received the written testimony and then we received evidence this morning at 7:54. Now, if this was just an oversight, Mr. Chairman, I could look beyond it, 100242 but it was an intentional effort by this witness and his advisors to once again show his disdain for this body. And with that, I move that we postpone this hearing. >> Second. Mr. Cummings >> I want to thank the gentleman. 100307 Mr. Cummings >> Let me say this, that we got the testimony late last night. We did. And we got it to you all pretty much the same time that we got it. I want to move forward with this hearing. Mr. Meadows >> Mr. Chairman, with all due respect, Mr. Chairman, this is a violation of the rule and if it was not intentional, I would not have a problem. I'm not saying it was intentional on your part. 100337 I'm saying it's intentional on his part, because Mr. Dean last night on a cable news network actually made it all very evident. John Dean. And I'll quote, Mr. Chairman. He said, as a former committee council in the house judiciary 100356 committee and then a long-term witness sitting alone at the table is important. Quote, holding your statement as long as you can so the other side can't chew it up is important as well, close quote. So it was advised that our witness got for this particular body -- and Mr. Chairman, when you were in the minority, you wouldn't have stood for it and I can tell you that we should not stand for it as a body. 100424 Mr. Cummings >> Let me say this. >> Mr. Chairman -- Mr. Cummings >> Yes. Ms. Hill >> I move to table. >> Mr. Chairman? Mr. Cummings >> Is there a second? >> Mr. Chairman, I was asked to be recognized before the motion. 100440 Mr. Cummings >> The vote is so in tabling the motion -- >> You know who had this material before all the members of the committee? CNN had it before we did. Mr. Cummings >> Sir -- >> CNN had the excerpts before we did. Mr. Cummings >> Sir. >> I just want to be recognized. Mr. Cummings >> Yeah. Well, the vote is on tabling the motion to postpone. All in favor, say aye. >> Aye. 100457 Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I appeal the ruling of the chair. >> It's not a ruling of the chair. Mr. Meadows >> I can assure you it's in the rules. I appeal the ruling of the chair. >> Do the rules matter, Mr. Chairman? 100511 Mr. Cummings >> I recognize the gentle lady. Mr. Hill >> Move to waive the rules, move to table. >> Chairman -- Mr. Cummings >> The vote -- >> She made two motions. What's the motion? Mr. Cummings >> The vote is on tabling -- 100529 >> I move to table the appeal to the ruling of the chair. Mr. Cummings >> The vote is on that. All in favor say aye. >> Aye. Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I ask for a recorded vote, Mr. Chairman. Mr. Cummings >> Very well. The clerk will call the role. 100558 Mr. Cummings >> Yes. Clerk >> Mr. Cummings votes yes. Ms. Maloney? Ms. Maloney >> Yes. >> Ms. Maloney votes yes. Ms. Norton? Ms. Norton >> Yes. Clerk >> Ms. Norton votes yes. Mr. Clay? Mr. Clay >> Yes. Clerk >> Mr. Clay votes yes. Mr. Lynch? Mr. Lynch >> Aye. Clerk >> Mr. Lynch votes yes. Mr. Cooper? Mr. Cooper >> Aye. Clerk >> Mr. Cooper votes yes. Mr. Connolly? Mr. Connolly >> Aye. Clerk >> Mr. Connolly votes yes. Mr. Krishnamoorthi? Mr. Krishnamoorthi >> Aye. Clerk >> Mr. Christian Murphy votes yes. Mr. Raskin? Mr. Raskin >> Aye. Clerk >> Mr. Raskin votes yes. Mr. Rouda. Mr. Rouda >> Aye. Clerk >> Mr. Rouda votes yes. Ms. Hill? 100632 Ms. Hill >> Yes. Clerk >> Ms. Hill votes yes. Ms. Wasserman Shultz Ms. Wasserman Shultz >> Yes. Clerk >> Ms. Wasserman Shultz votes yes. Mr. Sarbanes? Mr. Sarbanes >> Yes. Clerk >> Mr. Sarbanes votes yes. Mr. Welch? Mr. Welch >> Mr. Welch votes yes. Ms. Speier? Ms. Speier >>Yes. Clerk >> Ms. Speier votes yes. Ms. Kelly? Ms. Kelly >> Yes. Clerk >> Ms. Kelly votes yes. Mr. DeSaulnier? Mr. DeSaulnier >> Yes Clerk >> Mr. DeSaulnier votes yes. Ms. Lawrence? Ms. Lawrence >> Aye. Clerk >> Ms. Lawrence votes yes. Ms. Plaskett? Ms. Plaskett >> Yes. Clerk >> Ms. Plaskett votes yes. Mr. Khanna? Mr. Khanna >> Yes 100659 Clerk >> Mr. Khanna votes yes. Mr. Gomez? Mr. Gomez >> Aye. Clerk >> Mr. Gomez votes yes. Ms. Ocasio Cortez? Ms. Ocasio Cortez >> Aye. Clerk >> Ms Ocasio Cortez votes yes. Ms. Pressley? Ms. Pressley >>Yes Clerk >> Ms Pressley votes yes. Ms. Tlaib? Ms. Tlaib >> Yes Clerk >> Ms. Tlaib votes yes. Mr. Jordan? Mr. Jordan >> No. Clerk >> Mr. Jordan votes no. Mr. Amash? Mr. Amash >> No Clerk >> Mr. Amash votes no. Mr. Gosar? Mr. Gosar >> No Clerk >> Mr. Gosar votes no. Ms. Foxx? Ms. Foxx >> No. Clerk >> Ms. Foxx votes no. Mr. Massie? Mr. Massie >> No. Clerk >> Mr. Massie votes no. Mr. Meadows? 100731 Mr. Meadows >> No. Clerk >> Mr. Meadows votes no. Mr. Hice? Mr. Hice >>No. Clerk >> Mr. Hice votes no. Mr. Grothman? Mr. Grothman >> No Clerk >> Mr. Grothman votes no. Mr. Comer? Mr. Comer >> No Clerk >> Mr. Commer votes no. Mr. Cloud? Mr. Cloud >> No. Clerk >> Mr. Cloud votes no. Mr. Gibbs? Mr. Gibbs >> No Mr. Gibbs >> No Clerk >> Mr. Gibbs votes no. Mr. Higgins? Mr. Norman? Mr. Norman >> No Clerk >> Mr. Norman votes no. Mr. Roy Mr. Roy >> No. Clerk >> Mr. Roy votes no. Ms. Miller? Ms. Miller >> No Clerk >> Ms. Miller votes no. Mr. Green? Mr. Green >> No 100800 Clerk >> Mr. Green votes no. Mr. Armstrong? Mr. Armstrong >> No Clerk >> Mr. Armstrong votes no. Mr. Steube? Mr. Steube >> No. Clerk >> Mr. Steube votes no. 100816 Clerk >> On this vote we have 24 yes's, 17 no's. Mr. Cummings >> Motion to table is agreed to. Let me say this. You've made it clear that you do not want the American people to hear what Mr. Cohen has to say. But the American people are right to hear him. 100842 >> So we're going to proceed. The American people can judge his credibility for themselves. Now - >> Mr. Chairman? Mr Cummings >> Yes? >> We did not say that. We just said we wanted to follow the rules. We didn't say stop the hearing we just said postpone it so we could get his testimony and the exhibits when we were supposed to get them according to the rules of this committee. That's all we said. We didn't say we didn't want to hear from the guy. 100907 Mr. Cummings >> Reclaiming my time. Reclaiming my time. I now recognize myself for five minutes to give an opening statement. Today the committee will hear the testimony of Michael Cohen, president Donald Trump's long-time personal attorney and one of his closest and most trusted advisors over the last decade. On August 21st, Mr. Cohen appeared in federal court and admitted to arranging secret payoffs of hundreds of thousands of dollars on the eve of the election to silence women alleged affairs with Donald Trump. Mr. Cohen admitted to violating campaign finance laws and other 101004 laws. He admitted to committing these felonies, quote, in coordination with and at the direction of, unquote, President Trump. And he admitted, he admitted to lying about his actions to protect the president. Some will certainly ask if Mr. Cohen was lying then, why should we believe him now? This is a legitimate question. 101039 As a trial lawyer for many years, I have faced this situation over and over again and I asked the same question. Here is how I view our role. Every one of us in this room has a duty to serve as an independent check on the executive branch. Ladies and gentlemen, we are in search of the truth. 101108 The president has made many statements of his own, and now the American people have a right to hear the other side. They can watch Mr. Cohen's testimony and make their own judgment. We received a copy of Mr. Cohen's written statement late last night. It includes not only personal eyewitness accounts of meetings with Donald Trump as president inside the oval office, but it also includes documents and other corroborating evidence for some of Mr. Cohen's statements. 101150 For example, Mr. Cohen has provided a copy of a check sent while President Trump was in office with Donald Trump's signature on it to reimburse Mr. Cohen for the hush money payment to Stormy Daniels. This new evidence raises a host of troubling legal and ethical concerns about the president's actions in the white house and before. Would you all close that door, please? Thank you. 101235 This check is dated August 1st, 2017. Six months later, in April of 2018, the president denied anything about it. In April of 2018, President Trump was flying on air force one when a reporter asked him the question: Did you know about $130,000 payment to stormy Daniels? 101311 The answer was, quote, no. A month after that, the president admitted to making payments to Mr. Cohen, but claimed they were part of a, quote, a monthly retainer, unquote, for legal services. This claim fell apart in August when federal prosecutors concluded, and I quote, in truth and in fact, there was no such retainer agreement, end of quote. Today, we will also hear Mr. Cohen's account of a meeting in 2016 in Donald Trump's office during which Roger Stone said over speakerphone that he had just spoken with Julian assange, 101400 who said there would be a, quote, massive dump of e-mails that would damage Hillary Clinton's campaign, end of quote. According to Cohen, Mr. Trump replied, quote, wouldn't that be great, end of quote. The testimony that Michael Cohen will provide today, ladies and gentlemen, is deeply disturbing and it should be troubling to all Americans. 101431 We will all have to make our own evaluation of the evidence and Mr. Cohen's credibility. As he admits, he has repeatedly lied in the past. I agree with ranking member Jordan that this is an important factor we need to weigh, but we must weigh it and we must hear from him. But where I disagree fundamentally 101501 with the ranking member involves his efforts to prevent the American people from hearing from Mr. Cohen. Mr. Cohen's testimony raises grave questions about the legality of president Donald Trump's conduct and the truthfulness of statements while he was president. We need to assess and investigate this new evidence as we uphold our constitutional oversight responsibilities. 101536 And we will continue after today to gather many documents and testimony in our search for the truth. I have made it abundantly clear to Mr. Cohen that if he comes here today and he does not tell us the truth, I will be the first one to refer those untruthful statements to DOJ. So when people say he doesn't have anything to lose, he has a lot to lose if he lies. And the American people, by the 101612 way, voted for accountability in November, and they have a right to hear Mr. Cohen in public so they can make their own judgments. Mr. Cohen's testimony is the beginning of the process, not the end. Ladies and gentlemen, the days of this committee protecting the president at all costs are over. They're over. Before I close, I want to comment about the scope of today's hearing. 101648 At the request of the house intelligence committee and my very good friend Adam Schiff, congressman Adam Schiff, the chairman, I intended over the objections of the ranking member of our committee to limit the scope of today's hearing to avoid questions about Russia. However, Mr. Cohen's written testimony, in his written testimony, he's made statements 101715 relating to Russia. And these are topics that we understand do not raise concern from the department of justice. So in fairness to the ranking member and all committee members, we will not restrict questions relating to the witness's testimony or related questions he is willing to answer. 101739 Finally, I remind members that we will need to remain mindful of those areas where there are ongoing department of justice investigations. Those scoping limitations have not changed. Finally and to Mr. Cohen, Martin Luther King, Mr. Cohen, said some words that I leave with you today before you testify. He said, faith is taking the first step even when you can't 101815 see the whole staircase. There comes a time when silence becomes betrayal. Our lives begin to end the day we become silent about things that truly matter. In the end, he says, we will remember not the words of our enemies, but the silence of our friends. And with that, I yield to the distinguished gentleman, the ranking member of our committee, Mr. Jordan. 101851 Mr. Gosar (?) >> Mr. Chairman, point of parliamentary inquiry? >> Yes. Mr. Jordan is recognized for his opening statement. 101902 Mr. Jordan >> Mr. Chairman, here we go. Here we go. Your first big hearing, your first announced witness, Michael Cohen. I want everyone in this room to think about this. The first announced witness for the 116th congress is a guy who is going to prison in two months for lying to congress. Mr. Chairman, your chairmanship will always be identified with this hearing and we all need to understand what this is. This is the Michael Cohen hearing presented by Lanny Davis. That's right, Lanny Davis choreographed the whole darn thing, the Clintons' best friend, loyalist, operative, Lanny Davis put this all together. 101942 You know how we know? He told the committee staff. He said the hearing was his idea. He selected this committee. He had to talk Michael Cohen into coming. And most importantly, he had to persuade the chairman to actually have it. He told us it took two months to get that job done. But here we are. He talked him into it. This might be the first time someone convicted of lying to congress has appeared again so quickly in front of congress. Certainly it's the first time a convicted perjurer has been brought back to be a star witness in a hearing. 102016 And there's a reason this is a first, because no other committee would do it. Think about this. With Mr. Cohen here, this committee -- we got lots of lawyers on this committee. This committee is actually encouraging a witness to violate attorney/client privilege. Mr. Chairman, when we legitimize dishonesty, we delegitimize this institution. We're supposed to pursue the truth, but you have stacked the deck against the truth. We're only allowed to ask certain questions even with that amendment you just told us about, Russia is now on the table. 102049 You initially told us we can't ask questions about the special council, can't ask questions about the southern district of new York, can't ask questions about Russia. Nope, nope. Only subjects we can talk about are ones you think are going to be harmful to the president of the United States. And the answers to those questions are going to come from a guy who can't be trusted. Here's what the U.S. Attorney said about Mr. Cohen. While Mr. Cohen enjoyed a 102116 privileged life, his desire for ever greater wealth and influence precipitated an extensive course of criminal conduct. Mr. Cohen committed four distinct federal crimes over a period of several years. He was motivated to do so by personal greed and repeatedly, repeatedly used his power and influence for deceptive ends. But the Democrats don't care. 102142 They don't care. They just want to use you, Mr. Cohen. You're their Patsy today. They've got to find somebody somewhere to say something so they can try to remove the president from office. Because Tom Steyer told them to. Tom Steyer last week organized a town hall. Guess where? Chairman Nadler's district in Manhattan. Two nights ago Tom Steyer organized a town hall. Guess where? Chairman Cummings' district in Baltimore. 102214 The best they can find to start this process, Michael Cohen. Fraudster, cheat, convicted felon and in two months a federal inmate. Actually they didn't find him. Lanny Davis found him. I'll say one thing about the Democrats. They stick to the play book. Remember how all this started. The Clinton campaign hired Perkins Coie law firm, who hired Glenn Simpson who hired a foreigner Christopher Steele who put together the fake dossier that the FBI used to get a warrant to spy on the trump campaign. 102252 But when that whole scheme failed and the American people said we're going to make Donald Trump president, they said we've got to do something else. So now Clinton loyalist, Clinton operative Lanny Davis has persuaded the chairman of the oversight committee to give a convicted felon a forum to tell stories and lie about the president of the United States so they can all start their impeachment process. 102320 Mr. Chairman, we are better than this. We are better than this. I yield back. Mr. Cummings, Chairman 102331 >> I wanted to note -- Mr. Jordan >> Mr. Chairman, actually I have a motion. Mr. Cummings, Chairman >> You yielded back. Mr. Jordan >> I have a motion. I have a motion under rule 2 K 6 of rule 11. Mr. Cummings, Chairman >> You yielded back, sir. You yielded back. Mr. Jordan >> Mr. Chairman, you took seven minutes. I took four. Mr. Cummings, Chairman >> The gentleman yielded back. Mr. Jordan >> That's how you're going to operate? First you don't follow the rules. And now you're going to say- Mr. Cummings, Chairman >> Your point of order. 102358 Mr. Jordan >> You get to deviate from the rules. I just have a simple motion, Mr. Chairman. Mr. Cummings, Chairman >> Thank you. Mr. Jordan >> I wanted to order to have the testimony 24 hours in advance. Mr. Cummings, Chairman >> Excuse me. I wanted to note that under rule 11 clause 4 on media and photographers must be officially credentialed to record these proceedings and take photographs. I also wanted to briefly say to the spectators in the hearing room today. We welcome you and we respect your right to be here. We also ask in turn for your respect as we proceed with the business of the committee today. 102440 It is the intention of the committee to proceed without any disruptions, any disruptions of this committee will result in the United States capitol police restoring order and protesters will be removed. We are grateful for your presence here today and your cooperation. Now I want to welcome Mr. Cohen and thank him for participating in today's hearing. Mr. Cohen, if you would please rise, I will begin to swear you in. Raise your right hand. Do you swear or affirm that the testimony that you are about to give is the whole truth and 102521 nothing but the truth, so help you god? Let the record show that the witness answered in the affirmative. Thank you and you may be seated. The microphones are sensitive so please speak directly into them. Without objection, your written statement will be made a part of the record. With that, Mr. Cohen, you are now recognized to give an oral presentation of your testimony. Is your Mike on? MR. COHEN OPENING STATEMENT 102554 >> Yes. Chairman Cummings, ranking member Jordan and members of the committee, thank you for inviting me here today. I have asked this committee to ensure that my family be protected from presidential threats and that the committee be sensitive to the questions pertaining to ongoing investigations. I thank you for your help and for your understanding. I am here under oath to correct the record to answer the committee's questions truthfully and to offer the American people 102631 what I know about president Trump. I recognize that some of you may doubt and attack me on my credibility. It is for this reason that I have incorporated into this opening statement documents that are irrefutable and demonstrate that the information you will hear is accurate and truthful. 102658 Never in a million years did I imagine when I accepted a job in 2007 to work for Donald Trump that he would one day run for the presidency, to launch a campaign on a platform of hate and intolerance and actively win. I regret the day I said yes to Mr. Trump. I regret all the help and support I gave him along the way. 102726 I am ashamed of my own failings and publicly accepted responsibility for them by pleading guilty in the southern district of New York. I am ashamed of my weakness and my misplaced loyalty, of the things I did for Mr. Trump in an effort to protect and promote him. I am ashamed that I chose to take part in concealing Mr. Trump's elicit acts, rather than listening to my own conscience. 102758 I am ashamed because I know what Mr. Trump is. He is a racist, he is a conman, and he is a cheat. He was a presidential candidate who knew that Roger Stone was talking with Julian Assange about a wikileaks drop on democratic national committee e-mails. I will explain each in a few moments. 102830 I am providing the committee today with several documents. These include a copy of the check Mr. Trump wrote from his personal bank account after he became president to reimburse me for the hush money payments I made to cover up his affair with an adult film star and to prevent damage to his campaign. Copies of financial statements from 2011, 2012 and 2013, that he gave to such institutions such as Deutsche Bank. 102905 A copy of an article with Mr. Trump's handwriting on it that reported on the auction of a portrait of himself that he arranged for the bidder ahead of time and then reimbursed the bidder from the account of his nonprofit charitable foundation with the picture now hanging in one of his country clubs. And copies of letters I wrote at Mr. Trump's direction that threatened his high school, colleges and the college board not to release his grades or S.A.T. Scores. 102944 I hope my appearance here today, my guilty plea and my work with law enforcement agencies are steps along a path of redemption that will restore faith in me and help this country understand our president better. And before going further, I want to apologize to each member, to you as congress as a whole. The last time I appeared before congress, I came to protect Mr. Trump. Today I am here to tell the truth about Mr. Trump. 103021 I lied to congress when Mr. Trump stopped negotiating the Moscow tower project in Russia. I stated that we stopped negotiating in January of 2016. That was false. Our negotiations continued for months later during the campaign. Mr. Trump did not directly tell me to lie to congress. That's not how he operates. In conversations we had during the campaign, 103054 at the same time I was actively negotiating in Russia for him, he would look me in the eye and tell me there's no Russian business and then go onto lie to the American people by saying the same thing. In his way, he was telling me to lie. There were at least a half a dozen times between the Iowa caucus in January of 2016 and the end of June when he would ask me, how's it going in Russia? 103127 referring to the Moscow tower project. You need to know that Mr. Trump's personal lawyers reviewed and edited my statement to congress about the timing of the Moscow tower negotiations before I gave it. So to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it. He lied about it because he never expected to win. 103159 He also lied about it because he stood to make hundreds of millions of dollars on the Moscow real estate project. And so I lied about it too, because Mr. Trump had made clear to me through his personal statements to me that we both knew to be false and through his lies to the country that he wanted me to lie. And he made it clear to me because his personal attorneys reviewed my statement before I gave it to congress. 103234 Over the past two years, I have been smeared as a rat by the president of the United States. The truth is much different. Let me take a brief moment to introduce myself. My name is Michael Dean Cohen. I am a blessed husband of 24 years and a father to an incredible daughter and son. When I married my wife, I promised her that I would love her, I would cherish her and I would protect her. 103308 As my father said countless times throughout my childhood, you my wife and you my children are the air that I breathe. So to my Laura and my Sammy and my Jake, there's nothing I wouldn't do to protect you. I have always tried to live a life of loyalty, friendship, generosity and compassion. It's qualities my parents ingrained in my siblings and me since childhood. 103338 My father survived the holocaust thanks to the compassion and selfless acts of others. He was helped by many who put themselves in harm's way to do what they knew was right. And that is why my first instinct has always been to help those in need. Mom and dad, I am sorry I let you down. As the many people that know me best would say, I am the person that they call at 3:00 A.M. If they needed help. 103414 And I proudly remember being the emergency contact for many of my children's friends when they were growing up because their parents knew that I would drop everything and care for them as if they were my own. Yet last fall I plead guilty in federal court to felonies for the benefit of, at the direction of and in coordination with individual number one. And for the record, individual number one is president Donald J. Trump. 103455 It is painful to admit that I was motivated by ambition at times. It is even more painful to admit that many times I ignored my conscience and acted loyal to a man when I should not have. Sitting here today, it seems unbelievable that I was so mesmerized by Donald Trump that I was willing to do things for him that I knew were absolutely wrong. For that reason, I have come here to apologize to my family, to my government and to the American people. 103532 Accordingly, let me now tell you about Mr. Trump. I got to know him very well, working very closely with him for more than ten years as his executive vice president and special counsel and then as personal attorney when he became president. When I first met Mr. Trump, he was a successful entrepreneur, a real estate giant and an icon. Being around Mr. Trump was intoxicating when you were in his presence, you felt like you were involved in something greater than yourself, that you were somehow changing the world. 103613 I wound up touting the trump narrative for over a decade. That was my job, always stay on message, always defend. It monopolized my life. At first, I worked mostly on real estate developments and other business transactions. Shortly thereafter, Mr. Trump brought me into his personal life and private dealings. Over time I saw his true character revealed. Mr. Trump is an enigma. 103648 He is complicated, as am I. He is both good and bad, as do we all. But the bad far outweighs the good. Since taking office, he has become the worst version of himself. He is capable of behaving kindly, but he's not kind. He is capable of committing acts of generosity, but he is not generous. He is capable of being loyal, but he is fundamentally disloyal. Donald Trump is a man who ran for office to make his brand great, 103725 not to make our country great. He had no desire or intention to lead this nation, only to market himself and to build his wealth and power. Mr. Trump would often say, this campaign was going to be the greatest infomercial in political history. He never expected to win the primary. He never expected to win the general election. The campaign for him was always a marketing opportunity. 103800 I knew early on in my work for Mr. Trump that he would direct me to lie to further his business interests. I am ashamed to say that when it was for a real estate mogul in the private sector, I considered it trivial. As the president, I consider it significant and dangerous. But in the mix, lying for Mr. Trump was normalized and no one around him questioned it. In fairness, no one around him today questions it either. 103834 A lot of people have asked me about whether Mr. Trump knew about the release of the hacked documents, the democratic national committee e-mail ahead of time. And the answer is yes. As I earlier stated, Mr. Trump knew from Roger Stone in advance about the wikileaks drop of e-mails. In July of 2016, days before the democratic convention, I was in Mr. Trump's office when his secretary announced that Roger Stone was on the phone. 103908 Mr. Trump put Mr. Stone on the speakerphone. Mr. Stone told Mr. Trump that he had just gotten off the phone with Julian Assange and that Mr. Assange told Mr. Stone that within a couple of days there would be a massive dump of e-mails that would damage Hillary Clinton's campaign. Mr. Trump responded by stating to the effect, wouldn't that be great. 103937 Mr. Trump is a racist. The country has seen Mr. Trump court white supremacists and bigots. You have heard him call foreign countries shitholes. His private, in private, he is even worse. He once asked me if I could name a country run by a black person that wasn't a shithole. This was when Barack Obama was president of the United States. 104006 While we were once driving through a struggling neighborhood in Chicago, he commented that only black people could live that way. And he told me that black people would never vote for him because they were too stupid. And yet I continued to work for him. Mr. Trump is a cheat. As previously stated I am giving to the committee today three 104037 years of Mr. Trump's personal financial statements from 2011, 2012 and 2013, which he gave to Deutsche Bank to inquire about a loan to buy the Buffalo bills and to Forbes. These are exhibits 1a, 1b and 1c to my testimony. It was my experience that Mr. Trump inflated his total assets when it served his purposes, such as trying to be listed among the wealthiest people in portion. And deflated his assets to reduce his real estate taxes. 104117 I'm sharing with you two newspaper articles side by side that are examples of Mr. Trump inflating and deflating his assets, as I said, to suit his financial interests. These are exhibit 2 to my testimony. As I noted, I am giving the committee today an article he wrote on and sent to me that reported on an auction of a portrait of Mr. Trump. This is exhibit 3a to my testimony. Mr. Trump directed me to find a straw bidder 104153 to purchase a portrait of him that was being auctioned off at an art Hamptons event. The objective was to ensure that this portrait, which was going to be auctioned last, would go for the highest price of any portrait that afternoon. The portrait was purchased by the fake bidder for $60,000. Mr. Trump directed the trump foundation, which is supposed to be a charitable organization, to repay the fake bidder despite keeping the art for himself. 104227 Please see exhibit 3b to my testimony. And it should come as no surprise that one of my more common responsibilities was that Mr. Trump directed me to call business owners, many of whom are small businesses that were owed money for their services and told them that no payment or a reduced payment would be coming. 104253 When I asked Mr. Trump or when I told Mr. Trump of my success, he actually revelled in it. And yet I continued to work for him. Mr. Trump is a conman. He asked me to pay off an adult film star with whom he had an affair and to lie about it to his wife, which I did. And lying to the first lady is one of my biggest regrets, because she is a kind, good person, and I respect her greatly. 104329 And she did not deserve that. And I'm giving the committee today a copy of the $130,000 wire transfer from me to Ms. Clifford's attorney during the closing days of the presidential campaign that was demanded by Ms. Clifford to maintain her silence about her affair with Mr. Trump. This is exhibit 4 to my testimony. Mr. Trump directed me to use my own personal funds from a home equity line of credit to avoid any money being traced back to him that could negatively impact his campaign. 104411 And I did that too without bothering to consider whether that was improper, much less whether it was the right thing to do or how would it impact me, my family or the public. And I am going to jail in part because of my decision to help Mr. Trump hide that payment from the American people before they voted a few days later. As exhibit 5a to my testimony shows 104443 I am providing a copy of a $35,000 check that president Trump personally signed from his personal bank account on August 1st of 2017, when he was president of the United States, pursuant to the cover-up which was the basis of my guilty plea to reimburse me. The word used by Mr. Trump's TV lawyer for the illegal hush money I paid on his behalf. 104515 This $35,000 check was one of 11 check installments that was paid throughout the year while he was president. Other checks to reimburse me for the hush money payments were signed by Donald Trump Jr. And Alan weisselberg. See for that example 5b. 104540 The president of the united States thus wrote a personal check for the payment of hush money as part of a criminal scheme to violate campaign finance laws. You can find the details of that scheme directed by Mr. Trump in the pleadings in the U.S. District court for the southern district of New York. Picture this scene. In February of 2017, one month into his presidency, I'm visiting president Trump in the oval office for the first time, and it's truly awe inspiring. 104620 He's showing me all around and pointing to different paintings. And he says to me something to the effect of, don't worry, Michael, your January and February reimbursement checks are coming. They were fed exed from New York. And it takes a while for that to get through the white house system. As he promised, I received the first check for the reimbursement of $70,000 not long thereafter. 104650 When I say conman, I'm talking about a man who declares himself brilliant, but directed me to threaten his high school, his colleges and the college board to never release his grades or S.A.T. Scores. As I mentioned, I'm giving the committee today copies of a letter I sent at Mr. Trump's direction threatening these schools with civil and criminal actions if Mr. Trump's grades or S.A.T. Scores were ever disclosed without his permission. 104726 These are under exhibit 6. The irony wasn't lost on me at the time that Mr. Trump in 2011 had strongly criticized president Obama for not releasing his grades. As you can see in exhibit 7, Mr. Trump declared, let him show his records after calling president Obama a terrible student. The sad fact is that I never heard Mr. Trump say anything in private that led me to believe he loved our nation or wanted to make it better. 104805 In fact, he did the opposite. When telling me in 2008 or 2009 that he was cutting employee salaries in half, including mine, he showed me what he claimed was a $10 million irs tax refund, and he said that he could not believe how stupid the government was for giving someone like him that much money back. During the campaign, Mr. Trump said that he did not consider Vietnam veteran and prisoner of war 104839 senator John McCain to be a hero because he likes people who weren't captured. At the same time, Mr. Trump tasked me to handle the negative press surrounding his medical deferment from the Vietnam draft. Mr. Trump claimed it was because of a bone spur. But when I asked for medical records, he gave me none and said that there was no surgery. He told me not to answer the specific questions by reporters, 104913 but rather offer simply the fact that he received a medical deferment. He finished the conversation with the following comment: you think I'm stupid, I'm not going to Vietnam. And I find it ironic, Mr. President, that you are in Vietnam right now. And yet I continued to work for him. Questions have been raised about whether I know of direct evidence that Mr. Trump or his campaign colluded with Russia. I do not. 104949 And I want to be clear, but I have my suspicions. Sometime in the summer of 2017, I read all over the media that there had been a meeting in Trump Tower in June of 2016 involving don junior and others from the campaign with Russians, including a representative of the Russian government. 105011 In an e-mail setting up the meeting with the subject line "Dirt on Hillary Clinton." Something clicked in my mind. I remembered being in a room with Mr. Trump probably in early June of 2016 when something peculiar happened. Don trump Jr. Came into the room and walked behind his father's desk, which in and of itself was unusual. People didn't just walk behind Mr. Trump's desk to talk to him. And I recalled Don Junior leaning over to his father and speaking in a low voice, 105047 which I could clearly hear and saying, "The meeting is all set." I remember Mr. Trump saying, "Okay, good, let me know." What struck me as I look back and thought about the exchange between Don Junior and his father was, first, that Mr. Trump had frequently told me and others that his son Don Junior 105113 had the worst judgment of anyone in the world, and also that Don Junior would never set up any meeting of significance alone and certainly not without checking with his father. I also knew that nothing went on in Trump world, especially the campaign, without Mr. Trump's knowledge and approval. So I concluded that Don Junior was referring to that June 2016 trump tower meeting about dirt on Hillary with the Russian 105148 representatives when he walked behind his dad's desk that day. And that Mr. Trump knew that was the meeting Don Junior was talking about when he said, "That's good, let me know." Over the past year or so, I have done some real soul searching and I see now that my ambition and the intoxication of Trump power had much to do with the bad decisions in part that I made. 105220 And to you, Chairman Cummings and ranking member Jordan and the other members of this committee, the members of the house and senate, I am sorry for my lies and for lying to congress and to our nation, I am sorry for actively working to hide from you the truth about Mr. Trump when you needed it most. For those who question my motives for being here today, I understand. I have lied, but I am not a liar. I have done bad things, but I am not a bad man. 105258 I have fixed things, but I am no longer your fixer, Mr. Trump. And I am going to prison and have shattered the safety and security that I tried so hard to provide for my family. My testimony certainly does not diminish the pain that I have caused my family and my friends. Nothing can do that. And I have never asked for it, nor would I accept a pardon from President Trump. 105330 And by coming today, I have caused my family to be the target of personal, scurrilous attacks by the President and his lawyer trying to intimidate me from appearing before this panel. Mr. Trump called me a rat for choosing to tell the truth, much like a mobster would do when one of his men decides to cooperate with the government. As exhibit 8 shows, I have provided the committee with copies of tweets that Mr. Trump posted, attacking me and my family. 105407 Only someone burying his head in the sand would not recognize them for what they are. It's encouragement to someone to do harm to me and my family. I never imagined that he would engage in vicious, false attacks on my family and unleash his TV lawyer to do the same. 105430 And I hope this committee and all members of Congress on both sides of the aisle make it clear that as a nation we should not tolerate attempts to intimidate witnesses before Congress and attacks on family are out of bounds and not acceptable. I wish to especially thank speaker Pelosi for her statements. That's exhibit 9. To protect this institution and me. 105500 And the chairman of the house permanent select committee on intelligence, Adam Schiff, and you Chairman Cummings for likewise defending the institution and my family against the attacks by Mr. Trump and also the many Republicans who have admonished the President as well. I am not a perfect man. I have done things I am not proud of and I will live with the consequences of my actions for the rest of my life. 105534 But today I get to decide the example that I set for my children and how I attempt to change how history will remember me. I may not be able to change the past, but I can do right by the American people here today. And I thank you for your attention and am happy to answer the committee's questions. 105557 Mr. Cummings >> Thank you very much, Mr. Cohen. I now recognize myself. Mr. Cohen, before I start, I want to make sure you really understand something. You have admitted lying to Congress, to this very body. And now you're going to prison for it. Do you, Mr. Cohen, recognize the gravity of your offenses? You are a lawyer, right? Mr. Cohen >> As of yesterday, I am no longer a lawyer. I have lost my law license amongst other things. 105631 Mr. Cummings >> But you understand the gravity of this moment? Mr. Cohen >> I most certainly do, Mr. Chairman. Mr. Cummings >> I want you to really hear this, Mr. Cohen. We will not tolerate lying to this congress by anybody. We're in search of the truth. Do you understand that? Mr. Cohen >> I do. Mr. Cummings >> Now, the president has also made numerous statements that turned out to be inaccurate. 105659 For example, he said he knew nothing about the hush money payments to Ms. Clifford. And his 2017 financial disclosure form said he never owed money to reimburse you for those payments. Yet, in your testimony, Mr. Cohen, you said that you met with the President in the oval office in February of 2017 and discussed his plans to reimburse you for money you paid. 105731 You say he told you, and I quote, "Don't worry, Michael, your January and February reimbursement checks are coming." Is that accurate? And was that in the oval office? Mr. Cohen >> The statement is accurate, but the discussions regarding the reimbursement occurred long before he became president. Mr. Cummings >> Would you explain that? 105801 Mr. Cohen >> Back in 2017 -- actually I apologize. In 2016 prior to the election, I was contacted by Keith Davidson, who was the attorney, or was the attorney for Ms. Clifford, for stormy Daniels. And after several rounds of conversations with him about purchasing her life rights 105830 for $130,000, what I did each and every time is go straight into Mr. Trump's office and discuss the issue with him. When it was ultimately determined -- and this was days before the election -- that Mr. Trump was going to pay the $130,000. In the office with me was Allen Weissleberg, the chief financial officer of the trump organization. 105900 >> He acknowledged to Allen that he was going to pay the 130,000 and that Allen and I should go back to his office and figure out how to do it. So yes, sir, I stand by the statement that I gave, but there was a history to it. Mr. Cummings >> In your testimony, you said you brought some checks, is that right? Mr. Cohen >> Yes, sir. Mr. Cummings >> Let me ask you about one of these. This 105930 >> This from the Trump Trust that holds the President's businesses, can you tell me who signed this check? Mr. Cohen >> I believe that the top signature is Donald Trump Jr. And that the bottom signature is, I believe, is Allen Weissleberg's. Mr. Cummings >> Can you tell me the date of that check? Mr. Cohen >> March 17th of 2017. 110001 Mr. Cummings >> Wait a minute. Hold up. The date on the check is after President Trump held his big press conference claiming that he gave up control of his businesses. How could the president have arranged for you to get this check if he was supposedly playing no role in his business? Mr. Cohen >> Because the payments were designed to be paid over the course of 12 months, and it was declared to be 110032 >> a retainer for services that would be provided for the year of 2017. Mr. Cummings >> Was there a retainer agreement? Mr. Cohen >> There was no retainer agreement. Mr. Cummings >> Would Don Junior or Mr. Weissleberg have more information about that? Mr. Cohen >> Mr. Weissleberg for sure about the entire discussions and negotiations prior to the election, and Don Junior would have cursory information. 110103 Mr. Cummings >> Now, here's another one. This one appears to be signed by Donald Trump himself. Is that his signature? Mr. Cohen >> That is Donald Trump's signature. Mr. Cummings >> So let me make sure I understand. Donald Trump wrote you a check out of his personal account while he was serving as President of the United States of America to reimburse you for hush money payments 110131 to Ms. Clifford. Is that what you are telling the American people today? Mr. Cohen >> Yes, Mr. Chairman. Mr. Cummings >> One final question. The President claimed he knew nothing about these payments. His ethics filing said he owed nothing to you. Based on your conversations with him, is there any doubt in your mind that President Trump knew exactly what he was paying for? 110201 Mr. Cohen >> There is no doubt in my mind and I truly believe there's no doubt in the people of the United States of America. Mr. Cummings >> These new documents appear to corroborate what you just told us. With that, I'll yield to the gentleman and ranking member. Mr. Jordan >> I will make sure that you and I meet one day while we're in the courthouse andly take you for every penny you still don't have and I will come after your daily beast and everybody else that you possibly know. 110232 So I'm warning you, tread very efing lightly because what I'm going to do to you is going to be efing disgusting, you understand me? Mr. Cohen, who said that? Mr. Cohen >> I did. Mr. Jordan >> And did you say that, Mr. Cohen, in your testimony on page two, you said you did things for Mr. Trump in an effort to protect him. Was that statement that I just read that you admitted to saying, did you do that to protect Donald Trump? 110301 Mr. Cohen >> I did it to protect Mr. Trump, Donald Trump Jr., Ivanka Trump and Eric Trump. Mr. Jordan >> In your sentencing statement back in December in front of the judge, you said this, Mr. Cohen, my weakness can be characterized as a blind loyalty to Donald Trump, a blind loyalty that led me to choose a path of darkness. Is that accurate, Mr. Cohen? Mr. Cohen >> I wrote that. Mr. Jordan >> You wrote that and said that in front of the judge, is that right? Mr. Cohen >> That's correct. 110329 Mr. Jordan >> Let me read a few other things here and let me ask you why you did some of these things. When you filed a false tax return in 2012, 2013, 2014, 2015 and 2016, was all that out of blind loyalty to the president? Mr. Cohen >> No, it was not. Mr. Jordan >> When you failed to report 4 million in income to the internal revenue service, did you do that to protect Donald Trump? Mr. Cohen >> No, I did not. Mr. Jordan >> And when you failed to pay 1.4 million in taxes -- 110402 >> I got constituents who don't make that in a lifetime. When you failed to pay 1.4 million in taxes to the U.S. Treasury was that out of blind loyalty to the president of the United States? Mr. Cohen >> It was not. But the number was 1.38 and change and I have paid that money back to the IRS. Mr. Jordan >> I think the American people appreciate that 1.38. Mr. Cohen >> I would also like to say it was over a course of five years, approximately 260,000 a year. 110433 Mr. Jordan >> That's what I said, 2012, 2013, 2014, 2015, that's five years. Mr. Cohen >> Yes. Mr. Jordan >> Got it. When you made false statements to financial institutions concerning a home equity line of Credit, Taxi medallions on your Park Avenue apartment in 2013, 2014, and 2015 and you plead guilty to making those false statements to those banks, was that all done to protect the president? Mr. Cohen >> No, it was not. 110459 Mr. Jordan >> How about this one. When you created the fake Twitter account women for Cohen and paid a firm to post tweets like this one, "In a world of lies, deception and fraud, we appreciate this honest guy @Michael Cohen, #tgif #handsome #sexy. Was that done to protect the president? Mr. Cohen >> Mr. Jordan I didn't actually set that up. It was done by a young lady that worked for red finch. During the course of the campaign which you would know, is somewhat crazy and wild, 110535 we were having fun. That's what it was, sir. We were having fun. Mr. Jordan >> Was it done to protect the president? Mr. Cohen >> That was not done to protect the president? Mr. Jordan >> Was it a fake Twitter account? >> No. It was a real Twitter account. It exists. >> You paid a firm to create this-- Mr. Cohen >> I didn't pay the firm. It was done by a young lady that worked for the firm. Again, sir, we were having fun during a stressful time. Mr. Jordan >> The point is Mr. Cohen did you lie to protect the president or did you lie to help yourself? 110601 Mr. Cohen >> I'm not sure how that helped me, sir. Mr. Jordan >> I'm not sure how it did either. Mr. Cohen >> Right. And I would like to also note that more than half the people on that site are men. Mr. Jordan >> Here's the point. The chairman just gave you a 30-minute opening statement and you have a history of lying over and over and over again. Frankly, you don't have to take my word for it. Take what the court said, take what the southern district of New York said. Cohen. did crimes that were marked by a pattern of deception and that permeated his professional life. 110635 These crimes were distinct in their harms but very common set of circumstances. They each involved deception and were each, each motivated by personal greed and ambition. A pattern of deception for personal greed and ambition. And you just got 30 minutes of an opening statement where you trashed the president of the United States of America. Mr. Cohen, how long did you work for Donald Trump? 110701 Mr. Cohen >> Approximately a decade. Mr. Jordan >> Ten years? Mr. Cohen >> That is correct. Mr. Jordan >> You said all these bad things about the president there in that last 30 minutes, and yet you worked for him for ten years? All those bad things -- I mean, if it's that bad, I can see you working for him for ten days, maybe ten weeks, maybe even ten months. But you worked for him for ten years. Mr. Cohen, how long did you work in the white house? 110730 Mr. Cohen >> I never worked in the white house. Mr. Jordan >> That's the point, isn't it, Mr. Cohen? Mr. Cohen >> No, sir. Mr. Jordan >> Yes, it is. Mr. Cohen >> No, it's not, sir. Mr. Jordan >> You wanted to work in the white house and you didn't get brought to the dance. Mr. Cohen >> Sir, I was extremely proud to be personal attorney to the president of the United States of America. I did not want to go to the white house. I was offered jobs. I can tell you a story of Mr. Trump reaming out Reince Priebus because I had not taken a job where Mr. Trump wanted me to, which is working with Don McGahn 110801 at the white house general counsel's office. One second. What I said at the time -- and I brought a lawyer in who produced a memo as to why I should not go in, because there would be no attorney/client privilege. And in order to handle some of the matters that I talked about in my opening, that it would be best suited for me not to go in and that every president had a personal attorney. Mr. Jordan >> Here's what I see. I see a guy who worked for ten years and is here trashing the guy he worked for for ten years, didn't get a job in the white house, and now you're behaving just like everyone else who got fired or didn't get the job they wanted like Andy Mccabe, like James Comey, same kind of selfish motivation after you don't get the thing you want. 110848 That's what I see here today and I think that's what the American people see. Mr. Cohen >> Mr. Jordan, all I wanted was what I got, to be personal attorney to the president, to enjoy the senior year of my son in high school and waiting for my daughter who is graduating from college to come back to New York. I got exactly what I want. Mr. Jordan >> Exactly what you want? Mr. Cohen >> That's right. Mr. Jordan >> You're going to prison. Mr. Cohen >> I received exactly what I wanted. 110914 Mr. Cummings, Chairman >> The gentleman's time has expired. Ms. Wasserman Schultz. Ms. Schultz >> Thank you, Mr. Chairman. Mr. Cohen, thank you for being here today. As you likely know, I served as the chair of the democratic national committee at the time of the Russian hacks and when Russia weaponized the messages it had stolen. But I want to be clear, My questions are not about the harm done to my individual by wikileaks and the Russians. 110941 It's about the possible and likely harm to the United States of America and our democracy. I have a series of questions that I hope will connect more of these dots. Mr. Cohen, is it your testimony that Mr. Trump had advanced knowledge of the Russia wikileaks release of the DNC's e-mails? Mr. Cohen >> I cannot answer that in a yes or no. He had advanced notice that there was going to be a dump of e-mails, but at no time did I hear the specificity of what those e-mails were going to be. 111015 Ms. Schultz >> But you do testify today that he had advanced knowledge of their imminent release. Mr. Cohen >> That is what I had stated in my testimony. Mr. Schultz >> And that he cheered that outcome? Mr. Cohen >> Yes, ma'am. Ms. Shultz >> Did Mr. Trump likely share this information with his daughter ivanka, son don junior or Jared Kushner? Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was ivanka, Jared or don junior still involved in the Russian tower deal at that time? 111044 Mr. Cohen >> The company was involved in the deal, which meant that the family was involved in the deal. Ms. Schultz >> If Mr. Trump and his daughter ivanka and son Donald junior are involved in the Russian trump tower deal, is it possible the whole family is conflicted or compromised with a foreign adversary in the months before the election? Mr. Cohen >> Yes. Ms. Schultz >> Based on your experience with the president and knowledge of his relationship with Mr. Stone, do you have reason to believe that the president explicitly or implicitly authorized Mr. Stone to make contact with wikileaks and to indicate the campaign's interest in the strategic release of these illegally hacked materials? 111122 Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was Mr. Stone a free agent reporting back to the president what he had done? Or was he an agent of the campaign acting on behalf of the president and with his apparent authority? Mr. Cohen >> No. He was a free agent. Ms. Schultz >> A free agent that was reporting back to the president what he had done? Mr. Cohen >> Correct. He frequently reached out to Mr. Trump, and Mr. Trump was very happy to take his calls. It was free service. Ms. Schultz >> Roger stone says he never spoke with Mr. Trump about wikileaks. How can we corroborate what you are saying? Mr. Cohen >> I don't know. But I suspect that the special counsel's office and other government agencies have the information that you're seeking. 111209 Ms. Schultz >> Moving on to a little later in 2016, a major wikileaks dump happens hours after the access Hollywood tape is released. Do you believe or are you aware of Mr. Trump coordinating or signaling for this e-mail dump? Mr. Cohen >> I'm unaware of that. I actually was not even in the country at the time of the Billy bush tape. I was in London visiting my daughter. Ms. Schultz >> Knowing how Mr. Trump operates with his winning at all costs mentality, do you believe that he would cooperate 111242 or collude with a foreign power to win the presidency? Is he capable of that? Mr. Cohen >> It calls on so much speculation, ma'am. It would be unfair for me -- Ms. Schultz >> You have a tremendous amount of experience. Mr. Cohen >> Mr. Trump is all about winning. He will do what is necessary -- Ms. Schultz >> And in your opinion and experience, would he have the potential to cooperate or collude with a foreign power to win the presidency at all costs? 11-13-13 Mr. Cohen >> Yes. Ms. Schultz >> Based on what you know, would Mr. Trump or did he lie about colluding and coordinating with the Russians at any point during the campaign? Mr. Cohen >> As I stated in my testimony, I wouldn't use the word colluding. Was there something odd about the back and forth praise with president Putin? Yes. But I'm not really sure that I can answer that question in terms of collusion. 111351 I was not part of the campaign. I don't know the other conversations that Mr. Trump had with other individuals. There's just so many dots that all seem to lead to the same direction. Ms. Schultz >> Finally, before my time expires, Mr. Cohen, the campaign and the entire trump organization appeared to be filthy with Russian contact. There are Russian business contacts, there are campaign Russian contacts, there are lies about all of those contacts, 111427 and then we have Roger stone informing the president just before the democratic national convention that wikileaks was going to drop documents in the public arena that we knew at that point were hacked and stolen by Russia from the democratic national committee. Mr. Cummings, Chairman >> The gentle lady's time has expired. Ms. Schultz >> My question is, given all these connections, is it likely that Donald Trump was fully aware and had every intent of working with Russia to help make sure that he could win the presidency at all costs? 111506 Mr. Cohen >> Let me say this is a matter that's currently being handled by the house select and the senate select intelligence committees. So I would rather not answer that specific question other than just the tell you that Mr. Trump's desire to win would have him work with anyone. And one other thing that I had said in my statement is that when it came to the trump tower Moscow project, 111540 it was worth hundreds of millions of dollars, and we never expected to win the election. So this was just business as usual. Ms. Schultz >> Thank you, Mr. Cohen. Thank you, Mr. Chairman. Mr. Green >> Thank you Mr. Chairman, ranking member Jordan. The chairman in this committee promised members of the american people a fair and open process, yet the Democrats have vastly limited the scope of this hearing. They've issued a gag order to try to tell members of this committee what we can and cannot talk about. My colleagues on the other side of the aisle claim they want the truth, that they want transparency and fair oversight. 111616 Yet the Democrats' witness to testify before congress today is none other than a sworn scorned man who's going to prison for lying to congress. Let that sink in. He's going to prison for lying to congress and he's going to prison for lying to congress and he's the star witness, to congress. If you read the sentencing report on Mr. Cohen, words like deceptive and greedy are scattered throughout that report. It paints a picture of a narcissist, a bully who cannot tell the truth about the president or about his own personal life. 111648 But today he's the majority party's star witness. If the Democrats were after the truth, they'd have an honest person here testifying. And if they were really after the truth, they'd not restrict the questioning to just a few topics. But let's take a look at those restricted topics. Mr. Chairman, the first topic in your limited scope that I can ask Mr. Cohen is about the president's debts. But Mr. Chairman didn't Mr. Cohen plead guilty to lying to banks about his personal finances? We're asking a guy going to jail for lying about his debts to comment about the president's debts. 111729 He's the expert. Mr. Chairman,your next couple of topics say I can ask Mr. Cohen about the president's compliance with financial disclosures and campaign finance laws but didn't Mr. Cohen on two occasions break campaign finance law with his own donation? Again, the majority party star witness on the president's compliance is a guy who broke compliance laws himself. Mr. Chairman, you graciously allow us to ask questions of Mr. Cohen on the president's dealings with the irs and tax law. 111802 Your star witness here broke the law with regards to the irs at least five times. He pled guilty on cheating on his taxes, lying to the irs. He's the best witness you got? Next up with the permission of the chairman I get to ask Mr. Cohen about his perspective on the president's business dealings. Let me get this straight. The witness lied to multiple financial institutions to get loans to pay off other loans just to keep himself afloat and he's going to be the expert on business practices. 111836 Obviously, Mr. Chairman, the witness may produce documents that he suggests incriminates the president, yet he lies to banks. All of those lies were done on fraudulent documents, documents that he forged. Nothing he says or produces has any credibility. Apparently he even lied about delivering his own child, which his wife had to correct the record. Ladies and gentlemen, how on Earth is this witness credible? 111905 With all the lies and deception, the self-serving fraud, it begs the question, what is the majority party doing here? No one can see this guy as credible. He will say whatever he wants to accomplish his own personal goals. He's a fake witness. And his presence here is a travesty. I hope the American people see through this. I know the people back in Tennessee will. And with that statement, sir, I have a few questions of the witness. 111937 With your loss of your law license, I think you mentioned in your opening statement that you had been disbarred. What is your source of income in the future? Mr. Cohen >> I don't expect I'm going to have a source of income when I'm in the federal penitentiary. Mr. Green >> Is there a book deal coming? >> I have no book deal in the process. I have been contacted by many including for television, a movie. If you want to tell me who you would like to play you, I'm more than happy to write the name down. I would also like to turn around and just to correct your statement on me -- 112014 Mr. Green >> Let me ask one other question, though. I only have a limited amount of time. Mr. Cohen No individual -- Mr. Green >> One quick question. Who paid your expenses to be here today? Mr. Cohen >> Who's paid my expenses? Mr. Green >> To be here today. Mr. Cohen >> I paid my expenses. Mr. Green >> Mr. Chairman, I'd like to yield the remainder of my time to the ranking member. Mr. Jordan >> Mr. Cohen, how many times did you talk to the special counsel's office? Mr. Cohen >> Seven. Mr. Jordan >> Did they talk to you at all in preparation for today's hearing between the seven times you talked to them prior to your sentencing, have you had any conversations with the special counsel's office between sentencing and today? 112050 Mr. Cohen >> I'm sorry I don't understand your question. Mr. Jordan >> You talked to them seven times in the sentencing memorandums in front of the court back in December. What I'm asking is how many times you've talked to the special counsel's office since then up to today's appearance here in congress? Mr. Cummings, Chairman >> The gentleman's time has expired. You may answer the question now. Mr. Cohen >> I'm sorry I don't have the answer to that. Mr. Cummings, Chairman >> Ms. Maloney. Mr. Jordan >> I'll come back to that. 11:21:13 Ms. Maloney >> Thank you, Mr. Chairman. Mr. Cohen, in your ten years of working for Donald Trump, did he control everything that went on in the trump organization? And did you have to get his permission in advance and report back after every meeting of any importance? Mr. Cohen >> Yes. There was nothing that happened at the trump organization, whether it was a response as the daily beast story that you referred to, ranking member, that did not go through Mr. Trump with his approval and sign-off as in the case of the payments. 112200 Ms. Maloney >> How many times did the president, Michael, ask you or direct you to try to reach settlements with women in 2015 and 2016? Mr. Cohen >> I'm sorry, ma'am. I don't have the answer to that. I'd have to go back and try and recollect. It's certainly the two that we know about. Ms. Maloney >> Why do you think the president did not provide the accurate information in his 2017 financial disclosure form? What was he trying to hide? He corrected other forms, but he didn't correct this one. 112242 Mr. Cohen >> The payments on the reimbursement of the funds that I extended on his behalf. Ms. Maloney >> Can you elaborate more? Mr. Cohen >> Well, going back into the story, as I stated when Alan weissleberg and I left the office and went to his office in order to make the determination on how the money was going to be wired to the Iola, the interest on a lawyer's account for Keith Davidson in California, I had asked Alan to use his money. 112314 Didn't want to use mine. He said he couldn't. We then decided how else we can do it. He asked me whether or not I know anybody who wants to have a party at one of his clubs that could pay me instead or somebody who may have wanted to become a member of one of the golf clubs. And I also don't have anybody who was interested in that. It got to the point where it was down to the wire. It was either somebody wire the funds and purchase the life rights to the story from Ms. Clifford, or it was going to end up being sold to television, and that would have embarrassed the president and it would have interfered with the election. 112402 Ms. Maloney >> But the president has never amended his 2017 form to this day. While you're facing the consequences of going to jail, he is not. Mr. Cohen >> I believe they amended a financial disclosure form and there's a footnote somewhere buried. I don't recall specifically what it says, but there is a footnote buried somewhere. Ms. Maloney >> Can you describe, Michael, to the American people catch-and-kill? Mr. Cohen >> Catch-and-kill is a method that exists when you're working with a news outlet. 112439 In this specific case it was AMI, national enquirer, David pecker, Dylan Howard and others, where they would contact me or Mr. Trump or someone and state that there's a story that percolating out there that you may be interested in. Then what you do is you contact that individual and purchase the rights to that story from them. Ms. Maloney >> And you practiced this for the president? Mr. Cohen >> I was involved in several of these catch-and-kill episodes. But these catch-and-kill scenarios existed between David pecker and Mr. Trump long before I started working for him in 2007. 112525 Ms. Maloney >> Michael, can you suggest who else this committee should talk to for additional information on this or anything else? Mr. Cohen >> Yes. I believe David pecker, Dylan Howard, Barry Levine of Ami as well. Alan weissleberg, Alan Garton of the trump organization as well. Ms. Maloney >> Thank you very much for your testimony. And Mr. Chairman, this is a story of redemption. Mr. Cohen >> Thank you, ma'am. 112554 Mr. Cummings, Chairman >> Mr. Comer. Mr. Comer >> Mr. Cohen, in your testimony you stated that you began work for the trump organization as a lawyer dealing with real estate transactions, is that correct? Mr. Cohen >> That is correct. Mr. Comer >> Prior to coming to congress, I served as a director of two different banks so I've seen hundreds of loan applications and to try to determine your credibility here today, I just wanted to ask you a couple of real estate transaction questions just to see how in fact you operate. During to the southern district of New York prosecutors, you lied to banks to secure loans by falsing stating the amount of debt you were carrying. Mr. Cohen my question to you, was it Donald Trump's fault that you knowingly committed a crime of deception to defraud a bank? 112637 Mr. Cohen >> No, it's not. Mr. Comer >> Was that fraudulent loan you obtained for the trump organization or for you personally? Mr. Cohen >> It would be for me, though I'm not familiar with which loan you're referring to. I would like to say one thing. Sorry, I would like to respond. Mr. Comer >> The loan -- Mr. Cohen >> When we're talking about the home equity line of credit which is what I believe you're referring to -- Mr. Comer >> We're also referring -- I'm going to ask a question pertaining to your summer home you purchased too. 112706 Mr. Cohen >> I never purchased a summer home. No individual on no bank in the 22 years that I've had loans have ever lost a dollar with me. I owe no money to my bank. Mr. Comer >> The banks usually find out when someone's trying to deceive them. Mr. Cohen >> In 22 years I have no money owed to any individual or bank. Mr. Comer >> Mr. Cohen, did you so-called blind loyalty to the president cause you to defraud the bank for your own personal gain? Mr. Cohen >> Sir I take exception to that because I never defrauded any bank. 112740 Mr. Comer >> Let's dig a little deeper on that, on the bank fraud. According to the southern district of New York you failed to disclose $20 million in liabilities as well as tens of thousands of dollars of monthly expenses. That's according to the southern district of New York. Mr. Cohen, you being a lawyer, surely you knew you were breaking the law. Why would you have done that? Mr. Cohen >> Sir I'm not a cpa. I plead guilty. I'm going to prison as a result of it. Mr. Comer >> Because you're a con? Mr. Cohen >> No, sir. Because I plead guilty and I am going to be doing the time. I have caused tremendous, tremendous pain to my family. And I take no happiness -- 112822 Mr. Comer >> Let's go back to one last question about the bank. When the bank found out about the liabilities that you failed to disclose, you lied again to the bank, this is according to the southern district of new York, and said it had been expunged when in fact you just shifted the debt to another bank. Apparently, according to the information that we received,your intent to defraud the bank was for the desire to purchase the summer home for $8.5 million. Mr. Cohen >> No, sir. That would have been off an equity line. 112856 Considering I had less than a 50% loan to value on the assets and it was a pre existing line of credit that existed years before the date that you're referring to where this is all surrounding New York City taxi medallions. Mr. Comer >>But you understand that when you failed to disclose liabilities, especially $20 million in liabilities that is in fact fraud. Mr. Cohen >> Except even with $20 million in liability Mr. Comer >> How much was it? 112928 Mr. Cohen >> The medallions were at that time worth over $45 million Mr. Comer >> Mr. Cohen, you called Donald Trump a cheat in your open testimony. What would you call yourself? Mr. Cohen >> A fool. Mr. Comer >> You calling -- okay. Well, no comment on that. Mr. Cohen >> I appreciate that. Mr. Comer >> Mr. Chairman, we said we were in search of the truth. I don't believe that Michael Cohen is capable of telling the truth. And I would hope that as this committee moves forward, that when we have the opportunity to subpoena witnesses, 113002 we subpoena witnesses that are not recently disbarred, are not convicted felon, and witnesses that haven't committed bank fraud and tax fraud. That is how we're going to determine the truth. Mr. Chairman, I yield the balance of my time to the ranking member. Mr. Jordan >> I would just make one point. We just had a five-minute debate where Mr. Cohen dispute what is the southern district of new York found, what the judge found, that he was actually guilty of committing bank fraud. 113030 >> If this statement back here doesn't say it all, Cohen's consciousness of wrongdoing is fleeting, his remorse is minimal/ His instinct is to blame others is strong. There is only one thing wrong with that statement. His remorse is non-existent. He just debated a member of congress saying I really didn't do anything wrong with the false bank things that I'm guilty and going to prison for -- Mr. Cohen >> Mr. Jordan, that's not what I said. And you know that's not what I said. Mr. Jordan >> Will the gentleman yield? Mr. Cohen >> I said that I pled guilty and I take responsibility for my actions. WASH 11 MICHAEL COHEN HEARING WITNESS CSPAN POOL P2 TV 31PGM MICHAEL COHEN HEARING ABC DIGITAL P2 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them

0930 COHEN HRG DEM ISO FS7 88 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HEARING: Michael Cohen, Former Attorney to President Donald Trump Date: Wednesday, February 27, 2019 - 10:00am Location: 2154 Rayburn House Office Building, Washington, DC 20515 WITNESS: Michael Cohen Former Attorney for Donald Trump 10:01:50 Mr. Cummings >> The committee will come to order. Without objection the chair is authorized to declare a recess of the committee at any time. The full committee hearing will hear the testimony of Michael Cohen, former attorney to president Donald Trump. Mr. Meadows >> Mr. Chairman, I have a point of order. Mr. Cummings >> State your point of order. Mr. Meadows >> Rule F, rule 9 F of the committee rules say that any testimony from your witness needs to be here 24 hours in advance. The committee, the chairman knows well that at 10:08 we received the written testimony and then we received evidence this morning at 7:54. Now, if this was just an oversight, Mr. Chairman, I could look beyond it, 100242 but it was an intentional effort by this witness and his advisors to once again show his disdain for this body. And with that, I move that we postpone this hearing. >> Second. Mr. Cummings >> I want to thank the gentleman. 100307 Mr. Cummings >> Let me say this, that we got the testimony late last night. We did. And we got it to you all pretty much the same time that we got it. I want to move forward with this hearing. Mr. Meadows >> Mr. Chairman, with all due respect, Mr. Chairman, this is a violation of the rule and if it was not intentional, I would not have a problem. I'm not saying it was intentional on your part. 100337 I'm saying it's intentional on his part, because Mr. Dean last night on a cable news network actually made it all very evident. John Dean. And I'll quote, Mr. Chairman. He said, as a former committee council in the house judiciary 100356 committee and then a long-term witness sitting alone at the table is important. Quote, holding your statement as long as you can so the other side can't chew it up is important as well, close quote. So it was advised that our witness got for this particular body -- and Mr. Chairman, when you were in the minority, you wouldn't have stood for it and I can tell you that we should not stand for it as a body. 100424 Mr. Cummings >> Let me say this. >> Mr. Chairman -- Mr. Cummings >> Yes. Ms. Hill >> I move to table. >> Mr. Chairman? Mr. Cummings >> Is there a second? >> Mr. Chairman, I was asked to be recognized before the motion. 100440 Mr. Cummings >> The vote is so in tabling the motion -- >> You know who had this material before all the members of the committee? CNN had it before we did. Mr. Cummings >> Sir -- >> CNN had the excerpts before we did. Mr. Cummings >> Sir. >> I just want to be recognized. Mr. Cummings >> Yeah. Well, the vote is on tabling the motion to postpone. All in favor, say aye. >> Aye. 100457 Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I appeal the ruling of the chair. >> It's not a ruling of the chair. Mr. Meadows >> I can assure you it's in the rules. I appeal the ruling of the chair. >> Do the rules matter, Mr. Chairman? 100511 Mr. Cummings >> I recognize the gentle lady. Mr. Hill >> Move to waive the rules, move to table. >> Chairman -- Mr. Cummings >> The vote -- >> She made two motions. What's the motion? Mr. Cummings >> The vote is on tabling -- 100529 >> I move to table the appeal to the ruling of the chair. Mr. Cummings >> The vote is on that. All in favor say aye. >> Aye. Mr. Cummings >> All opposed say no. >> No. Mr. Cummings >> The ayes have it. Mr. Meadows >> I ask for a recorded vote, Mr. Chairman. Mr. Cummings >> Very well. The clerk will call the role. 100558 Mr. Cummings >> Yes. Clerk >> Mr. Cummings votes yes. Ms. Maloney? Ms. Maloney >> Yes. >> Ms. Maloney votes yes. Ms. Norton? Ms. Norton >> Yes. Clerk >> Ms. Norton votes yes. Mr. Clay? Mr. Clay >> Yes. Clerk >> Mr. Clay votes yes. Mr. Lynch? Mr. Lynch >> Aye. Clerk >> Mr. Lynch votes yes. Mr. Cooper? Mr. Cooper >> Aye. Clerk >> Mr. Cooper votes yes. Mr. Connolly? Mr. Connolly >> Aye. Clerk >> Mr. Connolly votes yes. Mr. Krishnamoorthi? Mr. Krishnamoorthi >> Aye. Clerk >> Mr. Christian Murphy votes yes. Mr. Raskin? Mr. Raskin >> Aye. Clerk >> Mr. Raskin votes yes. Mr. Rouda. Mr. Rouda >> Aye. Clerk >> Mr. Rouda votes yes. Ms. Hill? 100632 Ms. Hill >> Yes. Clerk >> Ms. Hill votes yes. Ms. Wasserman Shultz Ms. Wasserman Shultz >> Yes. Clerk >> Ms. Wasserman Shultz votes yes. Mr. Sarbanes? Mr. Sarbanes >> Yes. Clerk >> Mr. Sarbanes votes yes. Mr. Welch? Mr. Welch >> Mr. Welch votes yes. Ms. Speier? Ms. Speier >>Yes. Clerk >> Ms. Speier votes yes. Ms. Kelly? Ms. Kelly >> Yes. Clerk >> Ms. Kelly votes yes. Mr. DeSaulnier? Mr. DeSaulnier >> Yes Clerk >> Mr. DeSaulnier votes yes. Ms. Lawrence? Ms. Lawrence >> Aye. Clerk >> Ms. Lawrence votes yes. Ms. Plaskett? Ms. Plaskett >> Yes. Clerk >> Ms. Plaskett votes yes. Mr. Khanna? Mr. Khanna >> Yes 100659 Clerk >> Mr. Khanna votes yes. Mr. Gomez? Mr. Gomez >> Aye. Clerk >> Mr. Gomez votes yes. Ms. Ocasio Cortez? Ms. Ocasio Cortez >> Aye. Clerk >> Ms Ocasio Cortez votes yes. Ms. Pressley? Ms. Pressley >>Yes Clerk >> Ms Pressley votes yes. Ms. Tlaib? Ms. Tlaib >> Yes Clerk >> Ms. Tlaib votes yes. Mr. Jordan? Mr. Jordan >> No. Clerk >> Mr. Jordan votes no. Mr. Amash? Mr. Amash >> No Clerk >> Mr. Amash votes no. Mr. Gosar? Mr. Gosar >> No Clerk >> Mr. Gosar votes no. Ms. Foxx? Ms. Foxx >> No. Clerk >> Ms. Foxx votes no. Mr. Massie? Mr. Massie >> No. Clerk >> Mr. Massie votes no. Mr. Meadows? 100731 Mr. Meadows >> No. Clerk >> Mr. Meadows votes no. Mr. Hice? Mr. Hice >>No. Clerk >> Mr. Hice votes no. Mr. Grothman? Mr. Grothman >> No Clerk >> Mr. Grothman votes no. Mr. Comer? Mr. Comer >> No Clerk >> Mr. Commer votes no. Mr. Cloud? Mr. Cloud >> No. Clerk >> Mr. Cloud votes no. Mr. Gibbs? Mr. Gibbs >> No Mr. Gibbs >> No Clerk >> Mr. Gibbs votes no. Mr. Higgins? Mr. Norman? Mr. Norman >> No Clerk >> Mr. Norman votes no. Mr. Roy Mr. Roy >> No. Clerk >> Mr. Roy votes no. Ms. Miller? Ms. Miller >> No Clerk >> Ms. Miller votes no. Mr. Green? Mr. Green >> No 100800 Clerk >> Mr. Green votes no. Mr. Armstrong? Mr. Armstrong >> No Clerk >> Mr. Armstrong votes no. Mr. Steube? Mr. Steube >> No. Clerk >> Mr. Steube votes no. 100816 Clerk >> On this vote we have 24 yes's, 17 no's. Mr. Cummings >> Motion to table is agreed to. Let me say this. You've made it clear that you do not want the American people to hear what Mr. Cohen has to say. But the American people are right to hear him. 100842 >> So we're going to proceed. The American people can judge his credibility for themselves. Now - >> Mr. Chairman? Mr Cummings >> Yes? >> We did not say that. We just said we wanted to follow the rules. We didn't say stop the hearing we just said postpone it so we could get his testimony and the exhibits when we were supposed to get them according to the rules of this committee. That's all we said. We didn't say we didn't want to hear from the guy. 100907 Mr. Cummings >> Reclaiming my time. Reclaiming my time. I now recognize myself for five minutes to give an opening statement. Today the committee will hear the testimony of Michael Cohen, president Donald Trump's long-time personal attorney and one of his closest and most trusted advisors over the last decade. On August 21st, Mr. Cohen appeared in federal court and admitted to arranging secret payoffs of hundreds of thousands of dollars on the eve of the election to silence women alleged affairs with Donald Trump. Mr. Cohen admitted to violating campaign finance laws and other 101004 laws. He admitted to committing these felonies, quote, in coordination with and at the direction of, unquote, President Trump. And he admitted, he admitted to lying about his actions to protect the president. Some will certainly ask if Mr. Cohen was lying then, why should we believe him now? This is a legitimate question. 101039 As a trial lawyer for many years, I have faced this situation over and over again and I asked the same question. Here is how I view our role. Every one of us in this room has a duty to serve as an independent check on the executive branch. Ladies and gentlemen, we are in search of the truth. 101108 The president has made many statements of his own, and now the American people have a right to hear the other side. They can watch Mr. Cohen's testimony and make their own judgment. We received a copy of Mr. Cohen's written statement late last night. It includes not only personal eyewitness accounts of meetings with Donald Trump as president inside the oval office, but it also includes documents and other corroborating evidence for some of Mr. Cohen's statements. 101150 For example, Mr. Cohen has provided a copy of a check sent while President Trump was in office with Donald Trump's signature on it to reimburse Mr. Cohen for the hush money payment to Stormy Daniels. This new evidence raises a host of troubling legal and ethical concerns about the president's actions in the white house and before. Would you all close that door, please? Thank you. 101235 This check is dated August 1st, 2017. Six months later, in April of 2018, the president denied anything about it. In April of 2018, President Trump was flying on air force one when a reporter asked him the question: Did you know about $130,000 payment to stormy Daniels? 101311 The answer was, quote, no. A month after that, the president admitted to making payments to Mr. Cohen, but claimed they were part of a, quote, a monthly retainer, unquote, for legal services. This claim fell apart in August when federal prosecutors concluded, and I quote, in truth and in fact, there was no such retainer agreement, end of quote. Today, we will also hear Mr. Cohen's account of a meeting in 2016 in Donald Trump's office during which Roger Stone said over speakerphone that he had just spoken with Julian assange, 101400 who said there would be a, quote, massive dump of e-mails that would damage Hillary Clinton's campaign, end of quote. According to Cohen, Mr. Trump replied, quote, wouldn't that be great, end of quote. The testimony that Michael Cohen will provide today, ladies and gentlemen, is deeply disturbing and it should be troubling to all Americans. 101431 We will all have to make our own evaluation of the evidence and Mr. Cohen's credibility. As he admits, he has repeatedly lied in the past. I agree with ranking member Jordan that this is an important factor we need to weigh, but we must weigh it and we must hear from him. But where I disagree fundamentally 101501 with the ranking member involves his efforts to prevent the American people from hearing from Mr. Cohen. Mr. Cohen's testimony raises grave questions about the legality of president Donald Trump's conduct and the truthfulness of statements while he was president. We need to assess and investigate this new evidence as we uphold our constitutional oversight responsibilities. 101536 And we will continue after today to gather many documents and testimony in our search for the truth. I have made it abundantly clear to Mr. Cohen that if he comes here today and he does not tell us the truth, I will be the first one to refer those untruthful statements to DOJ. So when people say he doesn't have anything to lose, he has a lot to lose if he lies. And the American people, by the 101612 way, voted for accountability in November, and they have a right to hear Mr. Cohen in public so they can make their own judgments. Mr. Cohen's testimony is the beginning of the process, not the end. Ladies and gentlemen, the days of this committee protecting the president at all costs are over. They're over. Before I close, I want to comment about the scope of today's hearing. 101648 At the request of the house intelligence committee and my very good friend Adam Schiff, congressman Adam Schiff, the chairman, I intended over the objections of the ranking member of our committee to limit the scope of today's hearing to avoid questions about Russia. However, Mr. Cohen's written testimony, in his written testimony, he's made statements 101715 relating to Russia. And these are topics that we understand do not raise concern from the department of justice. So in fairness to the ranking member and all committee members, we will not restrict questions relating to the witness's testimony or related questions he is willing to answer. 101739 Finally, I remind members that we will need to remain mindful of those areas where there are ongoing department of justice investigations. Those scoping limitations have not changed. Finally and to Mr. Cohen, Martin Luther King, Mr. Cohen, said some words that I leave with you today before you testify. He said, faith is taking the first step even when you can't 101815 see the whole staircase. There comes a time when silence becomes betrayal. Our lives begin to end the day we become silent about things that truly matter. In the end, he says, we will remember not the words of our enemies, but the silence of our friends. And with that, I yield to the distinguished gentleman, the ranking member of our committee, Mr. Jordan. 101851 Mr. Gosar (?) >> Mr. Chairman, point of parliamentary inquiry? >> Yes. Mr. Jordan is recognized for his opening statement. 101902 Mr. Jordan >> Mr. Chairman, here we go. Here we go. Your first big hearing, your first announced witness, Michael Cohen. I want everyone in this room to think about this. The first announced witness for the 116th congress is a guy who is going to prison in two months for lying to congress. Mr. Chairman, your chairmanship will always be identified with this hearing and we all need to understand what this is. This is the Michael Cohen hearing presented by Lanny Davis. That's right, Lanny Davis choreographed the whole darn thing, the Clintons' best friend, loyalist, operative, Lanny Davis put this all together. 101942 You know how we know? He told the committee staff. He said the hearing was his idea. He selected this committee. He had to talk Michael Cohen into coming. And most importantly, he had to persuade the chairman to actually have it. He told us it took two months to get that job done. But here we are. He talked him into it. This might be the first time someone convicted of lying to congress has appeared again so quickly in front of congress. Certainly it's the first time a convicted perjurer has been brought back to be a star witness in a hearing. 102016 And there's a reason this is a first, because no other committee would do it. Think about this. With Mr. Cohen here, this committee -- we got lots of lawyers on this committee. This committee is actually encouraging a witness to violate attorney/client privilege. Mr. Chairman, when we legitimize dishonesty, we delegitimize this institution. We're supposed to pursue the truth, but you have stacked the deck against the truth. We're only allowed to ask certain questions even with that amendment you just told us about, Russia is now on the table. 102049 You initially told us we can't ask questions about the special council, can't ask questions about the southern district of new York, can't ask questions about Russia. Nope, nope. Only subjects we can talk about are ones you think are going to be harmful to the president of the United States. And the answers to those questions are going to come from a guy who can't be trusted. Here's what the U.S. Attorney said about Mr. Cohen. While Mr. Cohen enjoyed a 102116 privileged life, his desire for ever greater wealth and influence precipitated an extensive course of criminal conduct. Mr. Cohen committed four distinct federal crimes over a period of several years. He was motivated to do so by personal greed and repeatedly, repeatedly used his power and influence for deceptive ends. But the Democrats don't care. 102142 They don't care. They just want to use you, Mr. Cohen. You're their Patsy today. They've got to find somebody somewhere to say something so they can try to remove the president from office. Because Tom Steyer told them to. Tom Steyer last week organized a town hall. Guess where? Chairman Nadler's district in Manhattan. Two nights ago Tom Steyer organized a town hall. Guess where? Chairman Cummings' district in Baltimore. 102214 The best they can find to start this process, Michael Cohen. Fraudster, cheat, convicted felon and in two months a federal inmate. Actually they didn't find him. Lanny Davis found him. I'll say one thing about the Democrats. They stick to the play book. Remember how all this started. The Clinton campaign hired Perkins Coie law firm, who hired Glenn Simpson who hired a foreigner Christopher Steele who put together the fake dossier that the FBI used to get a warrant to spy on the trump campaign. 102252 But when that whole scheme failed and the American people said we're going to make Donald Trump president, they said we've got to do something else. So now Clinton loyalist, Clinton operative Lanny Davis has persuaded the chairman of the oversight committee to give a convicted felon a forum to tell stories and lie about the president of the United States so they can all start their impeachment process. 102320 Mr. Chairman, we are better than this. We are better than this. I yield back. Mr. Cummings, Chairman 102331 >> I wanted to note -- Mr. Jordan >> Mr. Chairman, actually I have a motion. Mr. Cummings, Chairman >> You yielded back. Mr. Jordan >> I have a motion. I have a motion under rule 2 K 6 of rule 11. Mr. Cummings, Chairman >> You yielded back, sir. You yielded back. Mr. Jordan >> Mr. Chairman, you took seven minutes. I took four. Mr. Cummings, Chairman >> The gentleman yielded back. Mr. Jordan >> That's how you're going to operate? First you don't follow the rules. And now you're going to say- Mr. Cummings, Chairman >> Your point of order. 102358 Mr. Jordan >> You get to deviate from the rules. I just have a simple motion, Mr. Chairman. Mr. Cummings, Chairman >> Thank you. Mr. Jordan >> I wanted to order to have the testimony 24 hours in advance. Mr. Cummings, Chairman >> Excuse me. I wanted to note that under rule 11 clause 4 on media and photographers must be officially credentialed to record these proceedings and take photographs. I also wanted to briefly say to the spectators in the hearing room today. We welcome you and we respect your right to be here. We also ask in turn for your respect as we proceed with the business of the committee today. 102440 It is the intention of the committee to proceed without any disruptions, any disruptions of this committee will result in the United States capitol police restoring order and protesters will be removed. We are grateful for your presence here today and your cooperation. Now I want to welcome Mr. Cohen and thank him for participating in today's hearing. Mr. Cohen, if you would please rise, I will begin to swear you in. Raise your right hand. Do you swear or affirm that the testimony that you are about to give is the whole truth and 102521 nothing but the truth, so help you god? Let the record show that the witness answered in the affirmative. Thank you and you may be seated. The microphones are sensitive so please speak directly into them. Without objection, your written statement will be made a part of the record. With that, Mr. Cohen, you are now recognized to give an oral presentation of your testimony. Is your Mike on? MR. COHEN OPENING STATEMENT 102554 >> Yes. Chairman Cummings, ranking member Jordan and members of the committee, thank you for inviting me here today. I have asked this committee to ensure that my family be protected from presidential threats and that the committee be sensitive to the questions pertaining to ongoing investigations. I thank you for your help and for your understanding. I am here under oath to correct the record to answer the committee's questions truthfully and to offer the American people 102631 what I know about president Trump. I recognize that some of you may doubt and attack me on my credibility. It is for this reason that I have incorporated into this opening statement documents that are irrefutable and demonstrate that the information you will hear is accurate and truthful. 102658 Never in a million years did I imagine when I accepted a job in 2007 to work for Donald Trump that he would one day run for the presidency, to launch a campaign on a platform of hate and intolerance and actively win. I regret the day I said yes to Mr. Trump. I regret all the help and support I gave him along the way. 102726 I am ashamed of my own failings and publicly accepted responsibility for them by pleading guilty in the southern district of New York. I am ashamed of my weakness and my misplaced loyalty, of the things I did for Mr. Trump in an effort to protect and promote him. I am ashamed that I chose to take part in concealing Mr. Trump's elicit acts, rather than listening to my own conscience. 102758 I am ashamed because I know what Mr. Trump is. He is a racist, he is a conman, and he is a cheat. He was a presidential candidate who knew that Roger Stone was talking with Julian Assange about a wikileaks drop on democratic national committee e-mails. I will explain each in a few moments. 102830 I am providing the committee today with several documents. These include a copy of the check Mr. Trump wrote from his personal bank account after he became president to reimburse me for the hush money payments I made to cover up his affair with an adult film star and to prevent damage to his campaign. Copies of financial statements from 2011, 2012 and 2013, that he gave to such institutions such as Deutsche Bank. 102905 A copy of an article with Mr. Trump's handwriting on it that reported on the auction of a portrait of himself that he arranged for the bidder ahead of time and then reimbursed the bidder from the account of his nonprofit charitable foundation with the picture now hanging in one of his country clubs. And copies of letters I wrote at Mr. Trump's direction that threatened his high school, colleges and the college board not to release his grades or S.A.T. Scores. 102944 I hope my appearance here today, my guilty plea and my work with law enforcement agencies are steps along a path of redemption that will restore faith in me and help this country understand our president better. And before going further, I want to apologize to each member, to you as congress as a whole. The last time I appeared before congress, I came to protect Mr. Trump. Today I am here to tell the truth about Mr. Trump. 103021 I lied to congress when Mr. Trump stopped negotiating the Moscow tower project in Russia. I stated that we stopped negotiating in January of 2016. That was false. Our negotiations continued for months later during the campaign. Mr. Trump did not directly tell me to lie to congress. That's not how he operates. In conversations we had during the campaign, 103054 at the same time I was actively negotiating in Russia for him, he would look me in the eye and tell me there's no Russian business and then go onto lie to the American people by saying the same thing. In his way, he was telling me to lie. There were at least a half a dozen times between the Iowa caucus in January of 2016 and the end of June when he would ask me, how's it going in Russia? 103127 referring to the Moscow tower project. You need to know that Mr. Trump's personal lawyers reviewed and edited my statement to congress about the timing of the Moscow tower negotiations before I gave it. So to be clear, Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it. He lied about it because he never expected to win. 103159 He also lied about it because he stood to make hundreds of millions of dollars on the Moscow real estate project. And so I lied about it too, because Mr. Trump had made clear to me through his personal statements to me that we both knew to be false and through his lies to the country that he wanted me to lie. And he made it clear to me because his personal attorneys reviewed my statement before I gave it to congress. 103234 Over the past two years, I have been smeared as a rat by the president of the United States. The truth is much different. Let me take a brief moment to introduce myself. My name is Michael Dean Cohen. I am a blessed husband of 24 years and a father to an incredible daughter and son. When I married my wife, I promised her that I would love her, I would cherish her and I would protect her. 103308 As my father said countless times throughout my childhood, you my wife and you my children are the air that I breathe. So to my Laura and my Sammy and my Jake, there's nothing I wouldn't do to protect you. I have always tried to live a life of loyalty, friendship, generosity and compassion. It's qualities my parents ingrained in my siblings and me since childhood. 103338 My father survived the holocaust thanks to the compassion and selfless acts of others. He was helped by many who put themselves in harm's way to do what they knew was right. And that is why my first instinct has always been to help those in need. Mom and dad, I am sorry I let you down. As the many people that know me best would say, I am the person that they call at 3:00 A.M. If they needed help. 103414 And I proudly remember being the emergency contact for many of my children's friends when they were growing up because their parents knew that I would drop everything and care for them as if they were my own. Yet last fall I plead guilty in federal court to felonies for the benefit of, at the direction of and in coordination with individual number one. And for the record, individual number one is president Donald J. Trump. 103455 It is painful to admit that I was motivated by ambition at times. It is even more painful to admit that many times I ignored my conscience and acted loyal to a man when I should not have. Sitting here today, it seems unbelievable that I was so mesmerized by Donald Trump that I was willing to do things for him that I knew were absolutely wrong. For that reason, I have come here to apologize to my family, to my government and to the American people. 103532 Accordingly, let me now tell you about Mr. Trump. I got to know him very well, working very closely with him for more than ten years as his executive vice president and special counsel and then as personal attorney when he became president. When I first met Mr. Trump, he was a successful entrepreneur, a real estate giant and an icon. Being around Mr. Trump was intoxicating when you were in his presence, you felt like you were involved in something greater than yourself, that you were somehow changing the world. 103613 I wound up touting the trump narrative for over a decade. That was my job, always stay on message, always defend. It monopolized my life. At first, I worked mostly on real estate developments and other business transactions. Shortly thereafter, Mr. Trump brought me into his personal life and private dealings. Over time I saw his true character revealed. Mr. Trump is an enigma. 103648 He is complicated, as am I. He is both good and bad, as do we all. But the bad far outweighs the good. Since taking office, he has become the worst version of himself. He is capable of behaving kindly, but he's not kind. He is capable of committing acts of generosity, but he is not generous. He is capable of being loyal, but he is fundamentally disloyal. Donald Trump is a man who ran for office to make his brand great, 103725 not to make our country great. He had no desire or intention to lead this nation, only to market himself and to build his wealth and power. Mr. Trump would often say, this campaign was going to be the greatest infomercial in political history. He never expected to win the primary. He never expected to win the general election. The campaign for him was always a marketing opportunity. 103800 I knew early on in my work for Mr. Trump that he would direct me to lie to further his business interests. I am ashamed to say that when it was for a real estate mogul in the private sector, I considered it trivial. As the president, I consider it significant and dangerous. But in the mix, lying for Mr. Trump was normalized and no one around him questioned it. In fairness, no one around him today questions it either. 103834 A lot of people have asked me about whether Mr. Trump knew about the release of the hacked documents, the democratic national committee e-mail ahead of time. And the answer is yes. As I earlier stated, Mr. Trump knew from Roger Stone in advance about the wikileaks drop of e-mails. In July of 2016, days before the democratic convention, I was in Mr. Trump's office when his secretary announced that Roger Stone was on the phone. 103908 Mr. Trump put Mr. Stone on the speakerphone. Mr. Stone told Mr. Trump that he had just gotten off the phone with Julian Assange and that Mr. Assange told Mr. Stone that within a couple of days there would be a massive dump of e-mails that would damage Hillary Clinton's campaign. Mr. Trump responded by stating to the effect, wouldn't that be great. 103937 Mr. Trump is a racist. The country has seen Mr. Trump court white supremacists and bigots. You have heard him call foreign countries shitholes. His private, in private, he is even worse. He once asked me if I could name a country run by a black person that wasn't a shithole. This was when Barack Obama was president of the United States. 104006 While we were once driving through a struggling neighborhood in Chicago, he commented that only black people could live that way. And he told me that black people would never vote for him because they were too stupid. And yet I continued to work for him. Mr. Trump is a cheat. As previously stated I am giving to the committee today three 104037 years of Mr. Trump's personal financial statements from 2011, 2012 and 2013, which he gave to Deutsche Bank to inquire about a loan to buy the Buffalo bills and to Forbes. These are exhibits 1a, 1b and 1c to my testimony. It was my experience that Mr. Trump inflated his total assets when it served his purposes, such as trying to be listed among the wealthiest people in portion. And deflated his assets to reduce his real estate taxes. 104117 I'm sharing with you two newspaper articles side by side that are examples of Mr. Trump inflating and deflating his assets, as I said, to suit his financial interests. These are exhibit 2 to my testimony. As I noted, I am giving the committee today an article he wrote on and sent to me that reported on an auction of a portrait of Mr. Trump. This is exhibit 3a to my testimony. Mr. Trump directed me to find a straw bidder 104153 to purchase a portrait of him that was being auctioned off at an art Hamptons event. The objective was to ensure that this portrait, which was going to be auctioned last, would go for the highest price of any portrait that afternoon. The portrait was purchased by the fake bidder for $60,000. Mr. Trump directed the trump foundation, which is supposed to be a charitable organization, to repay the fake bidder despite keeping the art for himself. 104227 Please see exhibit 3b to my testimony. And it should come as no surprise that one of my more common responsibilities was that Mr. Trump directed me to call business owners, many of whom are small businesses that were owed money for their services and told them that no payment or a reduced payment would be coming. 104253 When I asked Mr. Trump or when I told Mr. Trump of my success, he actually revelled in it. And yet I continued to work for him. Mr. Trump is a conman. He asked me to pay off an adult film star with whom he had an affair and to lie about it to his wife, which I did. And lying to the first lady is one of my biggest regrets, because she is a kind, good person, and I respect her greatly. 104329 And she did not deserve that. And I'm giving the committee today a copy of the $130,000 wire transfer from me to Ms. Clifford's attorney during the closing days of the presidential campaign that was demanded by Ms. Clifford to maintain her silence about her affair with Mr. Trump. This is exhibit 4 to my testimony. Mr. Trump directed me to use my own personal funds from a home equity line of credit to avoid any money being traced back to him that could negatively impact his campaign. 104411 And I did that too without bothering to consider whether that was improper, much less whether it was the right thing to do or how would it impact me, my family or the public. And I am going to jail in part because of my decision to help Mr. Trump hide that payment from the American people before they voted a few days later. As exhibit 5a to my testimony shows 104443 I am providing a copy of a $35,000 check that president Trump personally signed from his personal bank account on August 1st of 2017, when he was president of the United States, pursuant to the cover-up which was the basis of my guilty plea to reimburse me. The word used by Mr. Trump's TV lawyer for the illegal hush money I paid on his behalf. 104515 This $35,000 check was one of 11 check installments that was paid throughout the year while he was president. Other checks to reimburse me for the hush money payments were signed by Donald Trump Jr. And Alan weisselberg. See for that example 5b. 104540 The president of the united States thus wrote a personal check for the payment of hush money as part of a criminal scheme to violate campaign finance laws. You can find the details of that scheme directed by Mr. Trump in the pleadings in the U.S. District court for the southern district of New York. Picture this scene. In February of 2017, one month into his presidency, I'm visiting president Trump in the oval office for the first time, and it's truly awe inspiring. 104620 He's showing me all around and pointing to different paintings. And he says to me something to the effect of, don't worry, Michael, your January and February reimbursement checks are coming. They were fed exed from New York. And it takes a while for that to get through the white house system. As he promised, I received the first check for the reimbursement of $70,000 not long thereafter. 104650 When I say conman, I'm talking about a man who declares himself brilliant, but directed me to threaten his high school, his colleges and the college board to never release his grades or S.A.T. Scores. As I mentioned, I'm giving the committee today copies of a letter I sent at Mr. Trump's direction threatening these schools with civil and criminal actions if Mr. Trump's grades or S.A.T. Scores were ever disclosed without his permission. 104726 These are under exhibit 6. The irony wasn't lost on me at the time that Mr. Trump in 2011 had strongly criticized president Obama for not releasing his grades. As you can see in exhibit 7, Mr. Trump declared, let him show his records after calling president Obama a terrible student. The sad fact is that I never heard Mr. Trump say anything in private that led me to believe he loved our nation or wanted to make it better. 104805 In fact, he did the opposite. When telling me in 2008 or 2009 that he was cutting employee salaries in half, including mine, he showed me what he claimed was a $10 million irs tax refund, and he said that he could not believe how stupid the government was for giving someone like him that much money back. During the campaign, Mr. Trump said that he did not consider Vietnam veteran and prisoner of war 104839 senator John McCain to be a hero because he likes people who weren't captured. At the same time, Mr. Trump tasked me to handle the negative press surrounding his medical deferment from the Vietnam draft. Mr. Trump claimed it was because of a bone spur. But when I asked for medical records, he gave me none and said that there was no surgery. He told me not to answer the specific questions by reporters, 104913 but rather offer simply the fact that he received a medical deferment. He finished the conversation with the following comment: you think I'm stupid, I'm not going to Vietnam. And I find it ironic, Mr. President, that you are in Vietnam right now. And yet I continued to work for him. Questions have been raised about whether I know of direct evidence that Mr. Trump or his campaign colluded with Russia. I do not. 104949 And I want to be clear, but I have my suspicions. Sometime in the summer of 2017, I read all over the media that there had been a meeting in Trump Tower in June of 2016 involving don junior and others from the campaign with Russians, including a representative of the Russian government. 105011 In an e-mail setting up the meeting with the subject line "Dirt on Hillary Clinton." Something clicked in my mind. I remembered being in a room with Mr. Trump probably in early June of 2016 when something peculiar happened. Don trump Jr. Came into the room and walked behind his father's desk, which in and of itself was unusual. People didn't just walk behind Mr. Trump's desk to talk to him. And I recalled Don Junior leaning over to his father and speaking in a low voice, 105047 which I could clearly hear and saying, "The meeting is all set." I remember Mr. Trump saying, "Okay, good, let me know." What struck me as I look back and thought about the exchange between Don Junior and his father was, first, that Mr. Trump had frequently told me and others that his son Don Junior 105113 had the worst judgment of anyone in the world, and also that Don Junior would never set up any meeting of significance alone and certainly not without checking with his father. I also knew that nothing went on in Trump world, especially the campaign, without Mr. Trump's knowledge and approval. So I concluded that Don Junior was referring to that June 2016 trump tower meeting about dirt on Hillary with the Russian 105148 representatives when he walked behind his dad's desk that day. And that Mr. Trump knew that was the meeting Don Junior was talking about when he said, "That's good, let me know." Over the past year or so, I have done some real soul searching and I see now that my ambition and the intoxication of Trump power had much to do with the bad decisions in part that I made. 105220 And to you, Chairman Cummings and ranking member Jordan and the other members of this committee, the members of the house and senate, I am sorry for my lies and for lying to congress and to our nation, I am sorry for actively working to hide from you the truth about Mr. Trump when you needed it most. For those who question my motives for being here today, I understand. I have lied, but I am not a liar. I have done bad things, but I am not a bad man. 105258 I have fixed things, but I am no longer your fixer, Mr. Trump. And I am going to prison and have shattered the safety and security that I tried so hard to provide for my family. My testimony certainly does not diminish the pain that I have caused my family and my friends. Nothing can do that. And I have never asked for it, nor would I accept a pardon from President Trump. 105330 And by coming today, I have caused my family to be the target of personal, scurrilous attacks by the President and his lawyer trying to intimidate me from appearing before this panel. Mr. Trump called me a rat for choosing to tell the truth, much like a mobster would do when one of his men decides to cooperate with the government. As exhibit 8 shows, I have provided the committee with copies of tweets that Mr. Trump posted, attacking me and my family. 105407 Only someone burying his head in the sand would not recognize them for what they are. It's encouragement to someone to do harm to me and my family. I never imagined that he would engage in vicious, false attacks on my family and unleash his TV lawyer to do the same. 105430 And I hope this committee and all members of Congress on both sides of the aisle make it clear that as a nation we should not tolerate attempts to intimidate witnesses before Congress and attacks on family are out of bounds and not acceptable. I wish to especially thank speaker Pelosi for her statements. That's exhibit 9. To protect this institution and me. 105500 And the chairman of the house permanent select committee on intelligence, Adam Schiff, and you Chairman Cummings for likewise defending the institution and my family against the attacks by Mr. Trump and also the many Republicans who have admonished the President as well. I am not a perfect man. I have done things I am not proud of and I will live with the consequences of my actions for the rest of my life. 105534 But today I get to decide the example that I set for my children and how I attempt to change how history will remember me. I may not be able to change the past, but I can do right by the American people here today. And I thank you for your attention and am happy to answer the committee's questions. 105557 Mr. Cummings >> Thank you very much, Mr. Cohen. I now recognize myself. Mr. Cohen, before I start, I want to make sure you really understand something. You have admitted lying to Congress, to this very body. And now you're going to prison for it. Do you, Mr. Cohen, recognize the gravity of your offenses? You are a lawyer, right? Mr. Cohen >> As of yesterday, I am no longer a lawyer. I have lost my law license amongst other things. 105631 Mr. Cummings >> But you understand the gravity of this moment? Mr. Cohen >> I most certainly do, Mr. Chairman. Mr. Cummings >> I want you to really hear this, Mr. Cohen. We will not tolerate lying to this congress by anybody. We're in search of the truth. Do you understand that? Mr. Cohen >> I do. Mr. Cummings >> Now, the president has also made numerous statements that turned out to be inaccurate. 105659 For example, he said he knew nothing about the hush money payments to Ms. Clifford. And his 2017 financial disclosure form said he never owed money to reimburse you for those payments. Yet, in your testimony, Mr. Cohen, you said that you met with the President in the oval office in February of 2017 and discussed his plans to reimburse you for money you paid. 105731 You say he told you, and I quote, "Don't worry, Michael, your January and February reimbursement checks are coming." Is that accurate? And was that in the oval office? Mr. Cohen >> The statement is accurate, but the discussions regarding the reimbursement occurred long before he became president. Mr. Cummings >> Would you explain that? 105801 Mr. Cohen >> Back in 2017 -- actually I apologize. In 2016 prior to the election, I was contacted by Keith Davidson, who was the attorney, or was the attorney for Ms. Clifford, for stormy Daniels. And after several rounds of conversations with him about purchasing her life rights 105830 for $130,000, what I did each and every time is go straight into Mr. Trump's office and discuss the issue with him. When it was ultimately determined -- and this was days before the election -- that Mr. Trump was going to pay the $130,000. In the office with me was Allen Weissleberg, the chief financial officer of the trump organization. 105900 >> He acknowledged to Allen that he was going to pay the 130,000 and that Allen and I should go back to his office and figure out how to do it. So yes, sir, I stand by the statement that I gave, but there was a history to it. Mr. Cummings >> In your testimony, you said you brought some checks, is that right? Mr. Cohen >> Yes, sir. Mr. Cummings >> Let me ask you about one of these. This 105930 >> This from the Trump Trust that holds the President's businesses, can you tell me who signed this check? Mr. Cohen >> I believe that the top signature is Donald Trump Jr. And that the bottom signature is, I believe, is Allen Weissleberg's. Mr. Cummings >> Can you tell me the date of that check? Mr. Cohen >> March 17th of 2017. 110001 Mr. Cummings >> Wait a minute. Hold up. The date on the check is after President Trump held his big press conference claiming that he gave up control of his businesses. How could the president have arranged for you to get this check if he was supposedly playing no role in his business? Mr. Cohen >> Because the payments were designed to be paid over the course of 12 months, and it was declared to be 110032 >> a retainer for services that would be provided for the year of 2017. Mr. Cummings >> Was there a retainer agreement? Mr. Cohen >> There was no retainer agreement. Mr. Cummings >> Would Don Junior or Mr. Weissleberg have more information about that? Mr. Cohen >> Mr. Weissleberg for sure about the entire discussions and negotiations prior to the election, and Don Junior would have cursory information. 110103 Mr. Cummings >> Now, here's another one. This one appears to be signed by Donald Trump himself. Is that his signature? Mr. Cohen >> That is Donald Trump's signature. Mr. Cummings >> So let me make sure I understand. Donald Trump wrote you a check out of his personal account while he was serving as President of the United States of America to reimburse you for hush money payments 110131 to Ms. Clifford. Is that what you are telling the American people today? Mr. Cohen >> Yes, Mr. Chairman. Mr. Cummings >> One final question. The President claimed he knew nothing about these payments. His ethics filing said he owed nothing to you. Based on your conversations with him, is there any doubt in your mind that President Trump knew exactly what he was paying for? 110201 Mr. Cohen >> There is no doubt in my mind and I truly believe there's no doubt in the people of the United States of America. Mr. Cummings >> These new documents appear to corroborate what you just told us. With that, I'll yield to the gentleman and ranking member. Mr. Jordan >> I will make sure that you and I meet one day while we're in the courthouse andly take you for every penny you still don't have and I will come after your daily beast and everybody else that you possibly know. 110232 So I'm warning you, tread very efing lightly because what I'm going to do to you is going to be efing disgusting, you understand me? Mr. Cohen, who said that? Mr. Cohen >> I did. Mr. Jordan >> And did you say that, Mr. Cohen, in your testimony on page two, you said you did things for Mr. Trump in an effort to protect him. Was that statement that I just read that you admitted to saying, did you do that to protect Donald Trump? 110301 Mr. Cohen >> I did it to protect Mr. Trump, Donald Trump Jr., Ivanka Trump and Eric Trump. Mr. Jordan >> In your sentencing statement back in December in front of the judge, you said this, Mr. Cohen, my weakness can be characterized as a blind loyalty to Donald Trump, a blind loyalty that led me to choose a path of darkness. Is that accurate, Mr. Cohen? Mr. Cohen >> I wrote that. Mr. Jordan >> You wrote that and said that in front of the judge, is that right? Mr. Cohen >> That's correct. 110329 Mr. Jordan >> Let me read a few other things here and let me ask you why you did some of these things. When you filed a false tax return in 2012, 2013, 2014, 2015 and 2016, was all that out of blind loyalty to the president? Mr. Cohen >> No, it was not. Mr. Jordan >> When you failed to report 4 million in income to the internal revenue service, did you do that to protect Donald Trump? Mr. Cohen >> No, I did not. Mr. Jordan >> And when you failed to pay 1.4 million in taxes -- 110402 >> I got constituents who don't make that in a lifetime. When you failed to pay 1.4 million in taxes to the U.S. Treasury was that out of blind loyalty to the president of the United States? Mr. Cohen >> It was not. But the number was 1.38 and change and I have paid that money back to the IRS. Mr. Jordan >> I think the American people appreciate that 1.38. Mr. Cohen >> I would also like to say it was over a course of five years, approximately 260,000 a year. 110433 Mr. Jordan >> That's what I said, 2012, 2013, 2014, 2015, that's five years. Mr. Cohen >> Yes. Mr. Jordan >> Got it. When you made false statements to financial institutions concerning a home equity line of Credit, Taxi medallions on your Park Avenue apartment in 2013, 2014, and 2015 and you plead guilty to making those false statements to those banks, was that all done to protect the president? Mr. Cohen >> No, it was not. 110459 Mr. Jordan >> How about this one. When you created the fake Twitter account women for Cohen and paid a firm to post tweets like this one, "In a world of lies, deception and fraud, we appreciate this honest guy @Michael Cohen, #tgif #handsome #sexy. Was that done to protect the president? Mr. Cohen >> Mr. Jordan I didn't actually set that up. It was done by a young lady that worked for red finch. During the course of the campaign which you would know, is somewhat crazy and wild, 110535 we were having fun. That's what it was, sir. We were having fun. Mr. Jordan >> Was it done to protect the president? Mr. Cohen >> That was not done to protect the president? Mr. Jordan >> Was it a fake Twitter account? >> No. It was a real Twitter account. It exists. >> You paid a firm to create this-- Mr. Cohen >> I didn't pay the firm. It was done by a young lady that worked for the firm. Again, sir, we were having fun during a stressful time. Mr. Jordan >> The point is Mr. Cohen did you lie to protect the president or did you lie to help yourself? 110601 Mr. Cohen >> I'm not sure how that helped me, sir. Mr. Jordan >> I'm not sure how it did either. Mr. Cohen >> Right. And I would like to also note that more than half the people on that site are men. Mr. Jordan >> Here's the point. The chairman just gave you a 30-minute opening statement and you have a history of lying over and over and over again. Frankly, you don't have to take my word for it. Take what the court said, take what the southern district of New York said. Cohen. did crimes that were marked by a pattern of deception and that permeated his professional life. 110635 These crimes were distinct in their harms but very common set of circumstances. They each involved deception and were each, each motivated by personal greed and ambition. A pattern of deception for personal greed and ambition. And you just got 30 minutes of an opening statement where you trashed the president of the United States of America. Mr. Cohen, how long did you work for Donald Trump? 110701 Mr. Cohen >> Approximately a decade. Mr. Jordan >> Ten years? Mr. Cohen >> That is correct. Mr. Jordan >> You said all these bad things about the president there in that last 30 minutes, and yet you worked for him for ten years? All those bad things -- I mean, if it's that bad, I can see you working for him for ten days, maybe ten weeks, maybe even ten months. But you worked for him for ten years. Mr. Cohen, how long did you work in the white house? 110730 Mr. Cohen >> I never worked in the white house. Mr. Jordan >> That's the point, isn't it, Mr. Cohen? Mr. Cohen >> No, sir. Mr. Jordan >> Yes, it is. Mr. Cohen >> No, it's not, sir. Mr. Jordan >> You wanted to work in the white house and you didn't get brought to the dance. Mr. Cohen >> Sir, I was extremely proud to be personal attorney to the president of the United States of America. I did not want to go to the white house. I was offered jobs. I can tell you a story of Mr. Trump reaming out Reince Priebus because I had not taken a job where Mr. Trump wanted me to, which is working with Don McGahn 110801 at the white house general counsel's office. One second. What I said at the time -- and I brought a lawyer in who produced a memo as to why I should not go in, because there would be no attorney/client privilege. And in order to handle some of the matters that I talked about in my opening, that it would be best suited for me not to go in and that every president had a personal attorney. Mr. Jordan >> Here's what I see. I see a guy who worked for ten years and is here trashing the guy he worked for for ten years, didn't get a job in the white house, and now you're behaving just like everyone else who got fired or didn't get the job they wanted like Andy Mccabe, like James Comey, same kind of selfish motivation after you don't get the thing you want. 110848 That's what I see here today and I think that's what the American people see. Mr. Cohen >> Mr. Jordan, all I wanted was what I got, to be personal attorney to the president, to enjoy the senior year of my son in high school and waiting for my daughter who is graduating from college to come back to New York. I got exactly what I want. Mr. Jordan >> Exactly what you want? Mr. Cohen >> That's right. Mr. Jordan >> You're going to prison. Mr. Cohen >> I received exactly what I wanted. 110914 Mr. Cummings, Chairman >> The gentleman's time has expired. Ms. Wasserman Schultz. Ms. Schultz >> Thank you, Mr. Chairman. Mr. Cohen, thank you for being here today. As you likely know, I served as the chair of the democratic national committee at the time of the Russian hacks and when Russia weaponized the messages it had stolen. But I want to be clear, My questions are not about the harm done to my individual by wikileaks and the Russians. 110941 It's about the possible and likely harm to the United States of America and our democracy. I have a series of questions that I hope will connect more of these dots. Mr. Cohen, is it your testimony that Mr. Trump had advanced knowledge of the Russia wikileaks release of the DNC's e-mails? Mr. Cohen >> I cannot answer that in a yes or no. He had advanced notice that there was going to be a dump of e-mails, but at no time did I hear the specificity of what those e-mails were going to be. 111015 Ms. Schultz >> But you do testify today that he had advanced knowledge of their imminent release. Mr. Cohen >> That is what I had stated in my testimony. Mr. Schultz >> And that he cheered that outcome? Mr. Cohen >> Yes, ma'am. Ms. Shultz >> Did Mr. Trump likely share this information with his daughter ivanka, son don junior or Jared Kushner? Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was ivanka, Jared or don junior still involved in the Russian tower deal at that time? 111044 Mr. Cohen >> The company was involved in the deal, which meant that the family was involved in the deal. Ms. Schultz >> If Mr. Trump and his daughter ivanka and son Donald junior are involved in the Russian trump tower deal, is it possible the whole family is conflicted or compromised with a foreign adversary in the months before the election? Mr. Cohen >> Yes. Ms. Schultz >> Based on your experience with the president and knowledge of his relationship with Mr. Stone, do you have reason to believe that the president explicitly or implicitly authorized Mr. Stone to make contact with wikileaks and to indicate the campaign's interest in the strategic release of these illegally hacked materials? 111122 Mr. Cohen >> I'm not aware of that. Ms. Schultz >> Was Mr. Stone a free agent reporting back to the president what he had done? Or was he an agent of the campaign acting on behalf of the president and with his apparent authority? Mr. Cohen >> No. He was a free agent. Ms. Schultz >> A free agent that was reporting back to the president what he had done? Mr. Cohen >> Correct. He frequently reached out to Mr. Trump, and Mr. Trump was very happy to take his calls. It was free service. Ms. Schultz >> Roger stone says he never spoke with Mr. Trump about wikileaks. How can we corroborate what you are saying? Mr. Cohen >> I don't know. But I suspect that the special counsel's office and other government agencies have the information that you're seeking. 111209 Ms. Schultz >> Moving on to a little later in 2016, a major wikileaks dump happens hours after the access Hollywood tape is released. Do you believe or are you aware of Mr. Trump coordinating or signaling for this e-mail dump? Mr. Cohen >> I'm unaware of that. I actually was not even in the country at the time of the Billy bush tape. I was in London visiting my daughter. Ms. Schultz >> Knowing how Mr. Trump operates with his winning at all costs mentality, do you believe that he would cooperate 111242 or collude with a foreign power to win the presidency? Is he capable of that? Mr. Cohen >> It calls on so much speculation, ma'am. It would be unfair for me -- Ms. Schultz >> You have a tremendous amount of experience. Mr. Cohen >> Mr. Trump is all about winning. He will do what is necessary -- Ms. Schultz >> And in your opinion and experience, would he have the potential to cooperate or collude with a foreign power to win the presidency at all costs? 11-13-13 Mr. Cohen >> Yes. Ms. Schultz >> Based on what you know, would Mr. Trump or did he lie about colluding and coordinating with the Russians at any point during the campaign? Mr. Cohen >> As I stated in my testimony, I wouldn't use the word colluding. Was there something odd about the back and forth praise with president Putin? Yes. But I'm not really sure that I can answer that question in terms of collusion. 111351 I was not part of the campaign. I don't know the other conversations that Mr. Trump had with other individuals. There's just so many dots that all seem to lead to the same direction. Ms. Schultz >> Finally, before my time expires, Mr. Cohen, the campaign and the entire trump organization appeared to be filthy with Russian contact. There are Russian business contacts, there are campaign Russian contacts, there are lies about all of those contacts, 111427 and then we have Roger stone informing the president just before the democratic national convention that wikileaks was going to drop documents in the public arena that we knew at that point were hacked and stolen by Russia from the democratic national committee. Mr. Cummings, Chairman >> The gentle lady's time has expired. Ms. Schultz >> My question is, given all these connections, is it likely that Donald Trump was fully aware and had every intent of working with Russia to help make sure that he could win the presidency at all costs? 111506 Mr. Cohen >> Let me say this is a matter that's currently being handled by the house select and the senate select intelligence committees. So I would rather not answer that specific question other than just the tell you that Mr. Trump's desire to win would have him work with anyone. And one other thing that I had said in my statement is that when it came to the trump tower Moscow project, 111540 it was worth hundreds of millions of dollars, and we never expected to win the election. So this was just business as usual. Ms. Schultz >> Thank you, Mr. Cohen. Thank you, Mr. Chairman. Mr. Green >> Thank you Mr. Chairman, ranking member Jordan. The chairman in this committee promised members of the american people a fair and open process, yet the Democrats have vastly limited the scope of this hearing. They've issued a gag order to try to tell members of this committee what we can and cannot talk about. My colleagues on the other side of the aisle claim they want the truth, that they want transparency and fair oversight. 111616 Yet the Democrats' witness to testify before congress today is none other than a sworn scorned man who's going to prison for lying to congress. Let that sink in. He's going to prison for lying to congress and he's going to prison for lying to congress and he's the star witness, to congress. If you read the sentencing report on Mr. Cohen, words like deceptive and greedy are scattered throughout that report. It paints a picture of a narcissist, a bully who cannot tell the truth about the president or about his own personal life. 111648 But today he's the majority party's star witness. If the Democrats were after the truth, they'd have an honest person here testifying. And if they were really after the truth, they'd not restrict the questioning to just a few topics. But let's take a look at those restricted topics. Mr. Chairman, the first topic in your limited scope that I can ask Mr. Cohen is about the president's debts. But Mr. Chairman didn't Mr. Cohen plead guilty to lying to banks about his personal finances? We're asking a guy going to jail for lying about his debts to comment about the president's debts. 111729 He's the expert. Mr. Chairman,your next couple of topics say I can ask Mr. Cohen about the president's compliance with financial disclosures and campaign finance laws but didn't Mr. Cohen on two occasions break campaign finance law with his own donation? Again, the majority party star witness on the president's compliance is a guy who broke compliance laws himself. Mr. Chairman, you graciously allow us to ask questions of Mr. Cohen on the president's dealings with the irs and tax law. 111802 Your star witness here broke the law with regards to the irs at least five times. He pled guilty on cheating on his taxes, lying to the irs. He's the best witness you got? Next up with the permission of the chairman I get to ask Mr. Cohen about his perspective on the president's business dealings. Let me get this straight. The witness lied to multiple financial institutions to get loans to pay off other loans just to keep himself afloat and he's going to be the expert on business practices. 111836 Obviously, Mr. Chairman, the witness may produce documents that he suggests incriminates the president, yet he lies to banks. All of those lies were done on fraudulent documents, documents that he forged. Nothing he says or produces has any credibility. Apparently he even lied about delivering his own child, which his wife had to correct the record. Ladies and gentlemen, how on Earth is this witness credible? 111905 With all the lies and deception, the self-serving fraud, it begs the question, what is the majority party doing here? No one can see this guy as credible. He will say whatever he wants to accomplish his own personal goals. He's a fake witness. And his presence here is a travesty. I hope the American people see through this. I know the people back in Tennessee will. And with that statement, sir, I have a few questions of the witness. 111937 With your loss of your law license, I think you mentioned in your opening statement that you had been disbarred. What is your source of income in the future? Mr. Cohen >> I don't expect I'm going to have a source of income when I'm in the federal penitentiary. Mr. Green >> Is there a book deal coming? >> I have no book deal in the process. I have been contacted by many including for television, a movie. If you want to tell me who you would like to play you, I'm more than happy to write the name down. I would also like to turn around and just to correct your statement on me -- 112014 Mr. Green >> Let me ask one other question, though. I only have a limited amount of time. Mr. Cohen No individual -- Mr. Green >> One quick question. Who paid your expenses to be here today? Mr. Cohen >> Who's paid my expenses? Mr. Green >> To be here today. Mr. Cohen >> I paid my expenses. Mr. Green >> Mr. Chairman, I'd like to yield the remainder of my time to the ranking member. Mr. Jordan >> Mr. Cohen, how many times did you talk to the special counsel's office? Mr. Cohen >> Seven. Mr. Jordan >> Did they talk to you at all in preparation for today's hearing between the seven times you talked to them prior to your sentencing, have you had any conversations with the special counsel's office between sentencing and today? 112050 Mr. Cohen >> I'm sorry I don't understand your question. Mr. Jordan >> You talked to them seven times in the sentencing memorandums in front of the court back in December. What I'm asking is how many times you've talked to the special counsel's office since then up to today's appearance here in congress? Mr. Cummings, Chairman >> The gentleman's time has expired. You may answer the question now. Mr. Cohen >> I'm sorry I don't have the answer to that. Mr. Cummings, Chairman >> Ms. Maloney. Mr. Jordan >> I'll come back to that. 11:21:13 Ms. Maloney >> Thank you, Mr. Chairman. Mr. Cohen, in your ten years of working for Donald Trump, did he control everything that went on in the trump organization? And did you have to get his permission in advance and report back after every meeting of any importance? Mr. Cohen >> Yes. There was nothing that happened at the trump organization, whether it was a response as the daily beast story that you referred to, ranking member, that did not go through Mr. Trump with his approval and sign-off as in the case of the payments. 112200 Ms. Maloney >> How many times did the president, Michael, ask you or direct you to try to reach settlements with women in 2015 and 2016? Mr. Cohen >> I'm sorry, ma'am. I don't have the answer to that. I'd have to go back and try and recollect. It's certainly the two that we know about. Ms. Maloney >> Why do you think the president did not provide the accurate information in his 2017 financial disclosure form? What was he trying to hide? He corrected other forms, but he didn't correct this one. 112242 Mr. Cohen >> The payments on the reimbursement of the funds that I extended on his behalf. Ms. Maloney >> Can you elaborate more? Mr. Cohen >> Well, going back into the story, as I stated when Alan weissleberg and I left the office and went to his office in order to make the determination on how the money was going to be wired to the Iola, the interest on a lawyer's account for Keith Davidson in California, I had asked Alan to use his money. 112314 Didn't want to use mine. He said he couldn't. We then decided how else we can do it. He asked me whether or not I know anybody who wants to have a party at one of his clubs that could pay me instead or somebody who may have wanted to become a member of one of the golf clubs. And I also don't have anybody who was interested in that. It got to the point where it was down to the wire. It was either somebody wire the funds and purchase the life rights to the story from Ms. Clifford, or it was going to end up being sold to television, and that would have embarrassed the president and it would have interfered with the election. 112402 Ms. Maloney >> But the president has never amended his 2017 form to this day. While you're facing the consequences of going to jail, he is not. Mr. Cohen >> I believe they amended a financial disclosure form and there's a footnote somewhere buried. I don't recall specifically what it says, but there is a footnote buried somewhere. Ms. Maloney >> Can you describe, Michael, to the American people catch-and-kill? Mr. Cohen >> Catch-and-kill is a method that exists when you're working with a news outlet. 112439 In this specific case it was AMI, national enquirer, David pecker, Dylan Howard and others, where they would contact me or Mr. Trump or someone and state that there's a story that percolating out there that you may be interested in. Then what you do is you contact that individual and purchase the rights to that story from them. Ms. Maloney >> And you practiced this for the president? Mr. Cohen >> I was involved in several of these catch-and-kill episodes. But these catch-and-kill scenarios existed between David pecker and Mr. Trump long before I started working for him in 2007. 112525 Ms. Maloney >> Michael, can you suggest who else this committee should talk to for additional information on this or anything else? Mr. Cohen >> Yes. I believe David pecker, Dylan Howard, Barry Levine of Ami as well. Alan weissleberg, Alan Garton of the trump organization as well. Ms. Maloney >> Thank you very much for your testimony. And Mr. Chairman, this is a story of redemption. Mr. Cohen >> Thank you, ma'am. 112554 Mr. Cummings, Chairman >> Mr. Comer. Mr. Comer >> Mr. Cohen, in your testimony you stated that you began work for the trump organization as a lawyer dealing with real estate transactions, is that correct? Mr. Cohen >> That is correct. Mr. Comer >> Prior to coming to congress, I served as a director of two different banks so I've seen hundreds of loan applications and to try to determine your credibility here today, I just wanted to ask you a couple of real estate transaction questions just to see how in fact you operate. During to the southern district of New York prosecutors, you lied to banks to secure loans by falsing stating the amount of debt you were carrying. Mr. Cohen my question to you, was it Donald Trump's fault that you knowingly committed a crime of deception to defraud a bank? 112637 Mr. Cohen >> No, it's not. Mr. Comer >> Was that fraudulent loan you obtained for the trump organization or for you personally? Mr. Cohen >> It would be for me, though I'm not familiar with which loan you're referring to. I would like to say one thing. Sorry, I would like to respond. Mr. Comer >> The loan -- Mr. Cohen >> When we're talking about the home equity line of credit which is what I believe you're referring to -- Mr. Comer >> We're also referring -- I'm going to ask a question pertaining to your summer home you purchased too. 112706 Mr. Cohen >> I never purchased a summer home. No individual on no bank in the 22 years that I've had loans have ever lost a dollar with me. I owe no money to my bank. Mr. Comer >> The banks usually find out when someone's trying to deceive them. Mr. Cohen >> In 22 years I have no money owed to any individual or bank. Mr. Comer >> Mr. Cohen, did you so-called blind loyalty to the president cause you to defraud the bank for your own personal gain? Mr. Cohen >> Sir I take exception to that because I never defrauded any bank. 112740 Mr. Comer >> Let's dig a little deeper on that, on the bank fraud. According to the southern district of New York you failed to disclose $20 million in liabilities as well as tens of thousands of dollars of monthly expenses. That's according to the southern district of New York. Mr. Cohen, you being a lawyer, surely you knew you were breaking the law. Why would you have done that? Mr. Cohen >> Sir I'm not a cpa. I plead guilty. I'm going to prison as a result of it. Mr. Comer >> Because you're a con? Mr. Cohen >> No, sir. Because I plead guilty and I am going to be doing the time. I have caused tremendous, tremendous pain to my family. And I take no happiness -- 112822 Mr. Comer >> Let's go back to one last question about the bank. When the bank found out about the liabilities that you failed to disclose, you lied again to the bank, this is according to the southern district of new York, and said it had been expunged when in fact you just shifted the debt to another bank. Apparently, according to the information that we received,your intent to defraud the bank was for the desire to purchase the summer home for $8.5 million. Mr. Cohen >> No, sir. That would have been off an equity line. 112856 Considering I had less than a 50% loan to value on the assets and it was a pre existing line of credit that existed years before the date that you're referring to where this is all surrounding New York City taxi medallions. Mr. Comer >>But you understand that when you failed to disclose liabilities, especially $20 million in liabilities that is in fact fraud. Mr. Cohen >> Except even with $20 million in liability Mr. Comer >> How much was it? 112928 Mr. Cohen >> The medallions were at that time worth over $45 million Mr. Comer >> Mr. Cohen, you called Donald Trump a cheat in your open testimony. What would you call yourself? Mr. Cohen >> A fool. Mr. Comer >> You calling -- okay. Well, no comment on that. Mr. Cohen >> I appreciate that. Mr. Comer >> Mr. Chairman, we said we were in search of the truth. I don't believe that Michael Cohen is capable of telling the truth. And I would hope that as this committee moves forward, that when we have the opportunity to subpoena witnesses, 113002 we subpoena witnesses that are not recently disbarred, are not convicted felon, and witnesses that haven't committed bank fraud and tax fraud. That is how we're going to determine the truth. Mr. Chairman, I yield the balance of my time to the ranking member. Mr. Jordan >> I would just make one point. We just had a five-minute debate where Mr. Cohen dispute what is the southern district of new York found, what the judge found, that he was actually guilty of committing bank fraud. 113030 >> If this statement back here doesn't say it all, Cohen's consciousness of wrongdoing is fleeting, his remorse is minimal/ His instinct is to blame others is strong. There is only one thing wrong with that statement. His remorse is non-existent. He just debated a member of congress saying I really didn't do anything wrong with the false bank things that I'm guilty and going to prison for -- Mr. Cohen >> Mr. Jordan, that's not what I said. And you know that's not what I said. Mr. Jordan >> Will the gentleman yield? Mr. Cohen >> I said that I pled guilty and I take responsibility for my actions. WASH 11 MICHAEL COHEN HEARING WITNESS CSPAN POOL P2 TV 31PGM MICHAEL COHEN HEARING ABC DIGITAL P2 113101 Mr. Cummings >> The gentleman's time has expired. Mr. Cohen >> Shame on you, Mr. Jordan. That's not what I said. Shame on you. >> Mr. Chairman -- Mr. Cohen >> That's not what I said. What I said is I took responsibility and I take responsibility. What I was doing is explaining to the gentleman that his facts are inaccurate. I take responsibility for my mistakes. Alright? I am remorseful and I am going to prison. 113129 Mr. Cohen I will be away from my wife and family for years. So before you turn around and you cast more dispersion, please understand there are people watching you today that know me a whole lot better. I made mistakes. I own them and I didn't fight with the southern district of New York. I didn't put the system through an entire scenario. But what I did do is I pled guilty and I am going to be, again, going to prison. Mr. Cummings >> Ms. Ms. Norton? 113201 Ms. Norton >> Mr. Cohen, at the center of the reason you are going to prison is conviction for campaign finance violations. And they center around some salacious revelations. The "Washington post" reported or aired a "Access Hollywood" video. It set a record for the number of people who watched, crashed the newspaper's server. But this happened in early October on the cusp of the election. 113252 >> What was Mr. Trump's reaction to the video becoming public at that time? And was he concerned about the impact of that video on the election? Mr. Cohen >> The answer is yes. As I stated before, I was in London at the time visiting my daughter who was studying there for a Washington semester abroad. And I received a phone call during the dinner from Hope Hicks stating that she had just spoken to Mr. Trump and we need you to start making phone calls to the various different 113330 news outlets that you have relationships with, and we need to spin this. What we want to do is just to claim that this was men locker room talk. Ms. Norton >> Was the concern about the election in particular? Mr. Cohen >> The answer is yes. Then couple that with Karen Mcdougal, which then came out around the same time, and then on top of that the stormy Daniels matter. Ms. Norton >> Yeah. And these things happened in the month before the election 113403 >> and almost one after the other. The stormy Daniels revelation where prosecutors and officials learned of that matter and prosecutors stated that the officials at the magazine contacted you about the story. 113433 The magazine of course is "The national enquirer." That is correct that they did? Mr. Cohen >> Yes, ma'am. Ms. Norton >> -- Come to you. Were you concerned about this new story becoming public right after the "Access Hollywood" study in terms of impact on the election? 113500 Mr. Cohen >> I was concerned about it, but more importantly, Mr. Trump was concerned about it. Ms. Norton >> That was my next question. What was the president's concern about these matters becoming public in October as we were about to go into an election? Mr. Cohen >> I don't think anybody would dispute this belief that after the wildfire that encompassed the Billy bush tape that a second follow-up to it would have been 113531 pleasant and he was concerned with the effect that it had had on the campaign, on how women were seeing him and ultimately whether or not he would have a shot in the general election. Ms. Norton >> Until you negotiated the $130,000 payment -- Mr. Cohen >> The $130,000 number was not a number that was actually negotiated. It was told to me by Keith Davidson that this is a number that Ms. Clifford wanted. 113604 Ms. Norton >> You finally completed that deal, as it were, on October the -- Mr. Cohen >> 28th. Ms. Norton >> Days before the election. What happened in the interim? Mr. Cohen >> Contemplated whether or not to do it. Wasn't sure if she was really going to go public. There was, again, some communications back and forth between myself and Keith Davidson. 113631 >> And ultimately it came to either do it or don't, at which time, again, I had gone into Mr. Trump's office as I did after each and every conversation, and he had told me he had spoken to a couple friends, it's 130,000 and it's not a lot of money and we should do it. So go ahead and do it. And I was at the time with Allen Weissleberg where he directed us to go back to Weissleberg's office and figure this all out. Ms. Norton >> Thank you, Mr. Chairman. 113703 Mr. Cummings >> Mr. Meadows Mr. Meadows >> Mr. Cohen, do you know Lynn Patton? I'm right here. Do you know Lynn Patton? Mr. Cohen >> Yes, I do. Mr. Meadows >> I asked Lynn to come today in her personal capacity to actually shed some light. How long have you known Ms. Patton? Mr. Cohen >> I'm responsible for Ms. Patton joining the Trump organization in the job that she currently holds. Mr. Meadows >> I'm glad you acknowledge that because 113730 you made some very demeaning comments about the president that Ms. Patton doesn't agree with. In fact, it has to do with your claim of racism. She says that as a daughter of a man born in Birmingham, Alabama, that there is no way that she would work for an individual who was racist. How do you reconcile the two of those? Mr. Cohen >> As neither should I as the son of a holocaust survivor. 113802 Mr. Meadows >> But, Mr. Cohen, I guess what I'm saying is, is I've talked to the president over 300 times. I've not heard one time a racist comment out of his mouth in private. So how do you reconcile it? Do you have proof of those conversations? Do you have tape recordings of those conversations? Mr. Cohen >> I would ask you to - Mr. Meadows >> Do you have tape recordings of those conversations? Mr. Cohen >> No, sir. Mr. Meadows >> Well you've taped everybody else. Why wouldn't you - Mr. Cohen >> That's also not true, sir. That's not true. Mr. Meadows >> You haven't taped anybody. Mr. Cohen >> I have taped individuals. Mr. Meadows >> How many times have you taped individuals? 113832 Mr. Cohen >> Maybe 100 times over ten years. Mr. Meadows >> Is that a low estimate? Because I've heard it's over 200 times. Mr. Cohen >> No. It's approximately 100. From what I recall. But I would ask that you ask me a question, sir - Mr. Meadows >> Do you have proof, yes or no? Mr. Cohen >> I do. I do. Mr. Meadows >> Where's the proof? Mr. Cohen >> Ask Ms. Patton how many people who are black are executives at the Trump organization. The answer is zero. Mr. Meadows >> We can go through this. I would ask unanimous consent 113901 >> that her entire statement be put in the record. Mr. Cummings >> Without objection. Mr. Meadows >> Let me go on a little bit further. Did you collect $1.2 million or so from Navardas? Mr. Cohen >> I did. Mr. Meadows >> For access to the trump administration? Mr. Cohen >> No, sir. Mr. Meadows >> Why did you collect it? Mr. Cohen >> Because they came to me based upon my knowledge of the enigma Donald Trump, what he thinks -- Mr. Meadows >> Did they pay you 1.2 -- Mr. Cohen >> Please, sir, let me finish - 113929 Mr. Meadows >> No. Did they pay you 1.2 million dollars to give you advice? Mr. Cohen >> Yes, they did. They - A multibillion dollar conglomerate came to me looking for information, not something that's unusual here in D.C., looking for information. And they believed that I had a value. And that the value was the insight that I was capable of offering them and they were willing to pay. Mr. Meadows >> How many times did you meet with them