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New Details Behind Patel Decision; Andrew McCabe is Interviewed about the Patel Pick; Syria Steps up Airstrikes; Rick Muskat is Interviewed about Tariffs; James Mirfin is Interviewed about Holiday Scams. Aired 8:30-9a ET

Aired December 02, 2024 - 08:30   ET

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

[08:30:00]

ALAYNA TREENE, CNN REPORTER: "The radical prosecutors are guilty of weaponizing the justice system. That system of justice must be fixed and due process must be restored for all Americans." He went on to say that that is something that Donald Trump will do.

But again, I think this does also provide an opening for some of the sweeping changes we know Donald Trump has been talking about, both publicly, but also really, I'm told, it's been ramped up behind closed doors as well in his conversations with those around him, that he wants big changes. He wants to root out what he keeps calling bias at some of the biggest departments, including the Department of Justice and in the FBI. And perhaps this is the opening they need to try and gain more support from the public for some of the things that he really wants to do.

JOHN BERMAN, CNN ANCHOR: Well, on the subject of sweeping changes, on the subject also of election denial and January 6th, on the subject of maybe prosecuting journalists and enemies, political enemies, Donald Trump has said he wants to nominate Kash Patel to lead the FBI. Granted, the job's not open, but that's a whole other thing.

TREENE: That's right. I mean Donald Trump would first have to fire Christopher Wray, who's still serving out his ten year term in order to install Kash Patel at the helm of the FBI. But look, that is playing exactly into what I was just mentioning. I mean Patel is someone who has called for shutting down the bureau's Washington headquarters for firing FBI leadership and also for rooting out bias that they believe agents have really permeated the bureau, I should say, over the last several years. This is something that is very important to Donald Trump.

I was told when he was making this decision, he was between two candidates. Patel and Missouri Attorney General Andrew Bailey. And the reason he didn't like Bailey, I was told he was not impressed with his in-person interview with him, but also because he didn't believe that he had the personality traits or fit the mold that Donald Trump is looking for, which is really a legal pit bull and someone who will carry out his agenda and really reform and disrupt the agency that Donald Trump has really been gunning to do for several years now.

John. BERMAN: All right, Alayna Treene for us in Florida, where no doubt it

will be busy over the next few days.

Kate.

KATE BOLDUAN, CNN ANCHOR: And joining us right now on this is CNN's senior law enforcement analyst, former deputy director of the FBI, Andrew McCabe.

Andy, what's your take on Kash Patel being picked to head up the FBI?

ANDREW MCCABE, CNN SENIOR LAW ENFORCEMENT ANALYST: So, Kate, it's a somewhat confounding pick. I - you know, there's a - there's a whole - there's a whole conversation to be had about whether or not he's qualified for the job. I would argue he's clearly not. He doesn't have the experience and knowledge of the law enforcement community. He has a fairly undistinguished legal career. He doesn't really have a fraction of the qualifications that any former FBI director chosen by any president has.

But that's really not my main concern. My main concern is what it says about Donald Trump's intention for the FBI and where Kash Patel might take the FBI if he's confirmed as director. And that all points in one direction. And that is back to the FBI's regretful history of acting as essentially the enforcement arm for the president's political activities. That's where we come from as an institution. That's who we were under our first director, J. Edgar Hoover. But it is something we've gotten away from in the last 50 years, the post-Watergate, post- Church Committee, Pike Committee investigations. And we, the FBI today, is an independent entity that the nation relies on to enforce its criminal laws and protect it from national security threats. So, I think it's a really - a really concerning pick.

BOLDUAN: And some of the things that we know Kash Patel has said he would like to do with the FBI and the Justice Department, he's called for a comprehensive housecleaning of the Justice Department. He said he wants to - the - he wants to dismantle or shut down FBI headquarters in Washington and have it be turned into a museum of the deep state. If he would do that, it would be clearly, hugely disruptive. If it's something short of that, then what?

MCCABE: Well, it would almost certainly be something short of that. That's kind of absurd, you know, podcast talking point. If he's actually - if he's actually serious about that, I guess it means he doesn't understand that the 7,000 people who work at headquarters, 6,000 of them are not even agents. They are scientists and computer specialists and analysts and secretaries and professional support staff who aren't - clearly wouldn't be sent out around the country to work as cops, as he has threatened.

But it would be a significant disruption to pursue any, you know, any portion of that. And that, again, is, you know, get's back to my concerns about him.

BOLDUAN: Yes. MCCABE: We haven't heard anything from Kash Patel about what his - what his - what his plans would be. What's his vision for the FBI? What is he think - in what ways does he think he could make the FBI more effective or efficient? It's really just this disruptive bravado.

BOLDUAN: And, Andy, I think that's important because your - your decades of working at the FBI, he's facing - he will - will, would face confirmation.

[08:35:03]

What question would you have for him given the breadth of your knowledge and experience in serving in the department?

MCCABE: Well, many, Kate, right. There are - there - you shouldn't even think about accepting a nomination like this unless you're someone who has spent a lot of time thinking about understanding the FBI, knowing its people and how it works, and having a clear, articulable vision about where you intend to take the organization. Every new FBI director takes it in a different direction, makes it something it wasn't before. That's a good and healthy process.

But we've heard nothing about that from Kash Patel except these insane rants about the footprint is too big - I don't even know what that means - sending people out to work as police officers and turning the headquarters into a museum. None of that will actually happen. But what sort of burn it all down damage is he going to do because he really has no other credible direction to take the agency?

BOLDUAN: Yes, lots of questions now to be posed going forward in the coming days and weeks.

It's good to see you, Andy. Thank you for jumping on. I really appreciate it.

Coming up still for us, Syrian rebels gaining ground in Aleppo and beyond. The coordinated push posing the greatest challenge to President Bashar al Assad in nearly a decade. But now Assad's allies in Moscow say they'll keep supporting him. So, what does this mean?

And manufacturers are weighing what to do in the face of the huge threat posed by Donald Trump's proposed tariffs. Our next guest says when it comes to his company, any tariff would force them to raise prices.

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[08:41:05]

BOLDUAN: The Syrian military, with the help of Russian jets, are ramping back up on airstrikes against opposition rebel forces in northern Syria. There's new video into CNN showing the moment of impact from one strike on the streets of Aleppo.

Watch this.

(VIDEO CLIP)

BOLDUAN: This is all in retaliation for the sudden rebel offensive that's resulted in taking back control of Aleppo. The rebels surprising success posing the biggest challenge to Syrian President Bashar al Assad in over eight years. The most notable escalation in the Syrian conflict in years.

CNN's Clarissa Ward tracking this one for us.

Good morning, Clarissa. It's really remarkable.

CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT: Good morning, Kate.

Yes, for those of us who have been covering the conflict in Syria since back in 2011, I think everybody's jaw just dropped to see the speed with which rebels have been able to take territory. Really, the largest territorial gains we've seen in the Syrian civil war for eight years. Effectively, Bashar al Assad had managed to quell the rebellion with the help of three key backers, the Iranians, Hezbollah, and, of course, Russia.

Now perhaps because Russia is distracted with Ukraine, Iran is facing strikes of its own and the losses on the battlefield of its various proxies. Hezbollah, of course, has been battered by Israeli strikes. The rebels appear to have thought this was the moment to launch a renewed offensive. They were able to take complete control of the city of Aleppo. They are in complete control of Idlib. They are now knocking on the door of the central city of Hama.

But as you mentioned, we are now seeing the regime punching back with the help of Russia. Those airstrikes. You just showed that harrowing clip. According to the White Helmets, the civil defense group, at least 25 people were killed in those strikes in Idlib and also Aleppo. Among the dead, women and children. These are the kinds of scenes, Kate, that you may well remember, we all grew very accustomed to seeing during the height of the Syrian civil war, but had not seen for at least four or five years.

So, the question now remains, what happens with this rapid rebel advance? Do we continue to see a doubling down on airstrikes from Russia and the regime? And what will be the future fate of Syrian President Bashar al Assad?

Kate.

BOLDUAN: Yes, for the first time in many years, that now more a question than ever, which is remarkable, as you said, to even be - that being a consideration at this point.

Clarissa, it's great to see you. Thank you, as always, for your reporting.

John.

BERMAN: All right, this morning, on Cyber Monday no less, retailers are encouraging shoppers to stock up on items now ahead of Donald Trump's proposed tariffs. New tariffs could significantly increase consumer prices on nearly everything that is not entirely U.S. made. One example of that, the National Retail Federation estimates that the price of shoes could go up nearly 20 percent. That means your average running shoe that costs $90 today could go up to $106.

With us now, Rick Muskat, president of Deer Stags, a men's footwear company.

Thank you so much for being with us.

How would tariffs, these proposed tariffs, affect your manufacturing costs?

RICK MUSKAT, PRESIDENT, DEER STAGS: Well, simply, they're proposing a 60 percent tariff on goods coming in from China. The shoes we sell, we're a moderate price brand, our average men's shoes retail for about $50.

[08:45:00]

So, let's say a shoe costs $10 out of the factory, you add a 60 percent tariff, that's $6 a pair. That increases our cost of owning the shoes into our warehouse by $6. Then we add our markup and sell it to the retailer. And the retailer adds their markup. So our $50 shoe would likely go to $70 or $75 a pair.

BERMAN: So, the consumer would see an increase of $20 to $25?

MUSKAT: Absolutely. Absolutely.

BERMAN: Why couldn't you eat that? Why couldn't you eat the costs?

MUSKAT: We would start losing money.

BERMAN: Why couldn't you -

MUSKAT: We would lose money on every pair.

BERMAN: Why couldn't you get, you know, your shoes from somewhere made in the United States?

MUSKAT: So, 99 percent of the shoes sold in America are imported from somewhere in the world. And about 60 percent of those come from China. China has a unique - a uniquely developed supply chain over many years. All of the component parts that go into making a shoe, the bottoms, the soles, the insoles, the upper patterns, the raw materials in the upper, all are made in China. So, there's no way to bring it back to the United States.

What some companies are trying to do is move to other factories and other South Asian countries like Vietnam, Bangladesh, et cetera. But most of those factories have been set up in those countries by the Chinese manufacturers who just set up - set up production in these other countries so they move their equipment, let's say, to Vietnam. They send the raw materials from China to Vietnam and then they use the Vietnamese labor.

So, it just - and for the price point, the kind of shoes that we make, again, moderate price shoes, these other countries prefer to make higher priced shoes, like you mentioned in your opening about athletic shoes, sneakers retailing for $90. Our shoes retail for $50. We're concerned about the impact on -

BERMAN: How quickly -

MUSKAT: I'm sorry. We're concerned about the impact on the -

BERMAN: How quickly would consumers see this?

MUSKAT: Excuse me.

BERMAN: How quickly, after Trump takes office, if he imposes these tariffs, would consumers see the change?

MUSKAT: Well, we don't know when he'll impose the tariffs exactly. He's talked about 60 percent. He hasn't said when. And if it will be 60 percent or something different. So, we have a hard time planning for that.

What we'll have to do is, if he imposes the tariff, the tariff is paid when the goods are imported, of course, into the United States. As we start to receive that inventory, we're going to have to increase the price of those shoes. And then when they hit the stores, the retailers will increase the price of those shoes.

BERMAN: Anything you can do now to prepare for this?

MUSKAT: Not really. There's a lot of talk about trying to front load inventory, buy the shoes in advance, try to get them into the country before the tariffs are imposed. But again, we don't know when that's going to be. So, it's very hard to plan. I think we, in our company, we're going to - will respond or will react at the time we know exactly what's happening, when it's going to happen. And if we have to pay more to get our shoes into the country, unfortunately, we have to sell the shoes for more.

BERMAN: All right, Rick Muskat, these are just realities that you are dealing with and consumers might soon too. Thank you for being with us this morning.

MUSKAT: Thank you.

BERMAN: So, a bear is now in custody after attacking a grocery store worker and ransacking the meat department. The bear evaded authorities for two days before being apprehended. We have the latest on - I guess it's not a manhunt, the bear hunt. You can see, bear on the lam.

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[08:53:23]

BERMAN: Closing arguments expected to begin today in the trial of Daniel Penny. He is accused of putting Jordan Neely in a fatal chokehold in a New York subway in 2023. Penny is charged with second degree manslaughter and criminally negligent homicide.

The Big Ten fined Michigan and Ohio state $100,000 each for their involvement in the brawl following Michigan's upset of the number two Buckeyes on Saturday. You can see it happen right there. It was ugly. Police had to use pepper spray to break up the players, who were obviously, as you saw, throwing punches there.