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"cnn newsroom." we're grateful to you have this afternoon. i'm boris sanchez. >> hi, everyone. it i'm jessica dean. political lines deepening, law enforcement preparing for what would be a first in american history. the criminal indictment of a former president. the key witness in a case against donald trump is expected to be challenged today before a grand jury in new york. a former legal advisor to michael cohen telling cnn testifying at the request of donald trump's attorneys. look at video of costello arriving at the courthouse moments ago. robert costello saying he'll offer evidence that contradicts cohen. cohen, who once labeled himself trump's fixer said he paid adult film actress stormy daniels $130,000 in the weeks before the 2016 election for her silence on an alleged affair with donald trump. >> now, that was a campaign finance violation, as cohen lied on forms to cover up that payment. in 2018. you may recall. cohen cut a deal with federal

prosecutors and adds mitted he acteds in coordination with and at the direction of individual one. individual one was later identified as trump. the former president has denied the affair took place, but over the weekend he revealed he thinks he's going to be arrested tomorrow, ending his online post with a call to "protest and take our nation back." the manhattan d.a. is not commenting on any arrest, but the nypd has set up cameras and barricades in recent days around the courthouse. sources say that new york authorities are extremely concerned about security and crowds there. let's get you the very latest from the manhattan courtroom with cnn senior legal affairs correspondent paula reed following all developments. do we know how robert costello will try to contradict michael cohen before the grand jury? >> reporter: we have some idea. a witness requested by the

former president's legal team. while the prosecutors are in charge of the grand jury, they didn't even have to grant this request they did, of course, denied request from the trump team it could potentially become a thing, not great for optics. costello is expected to potentially go before the grand jury, if they want to hear from him, and talk about what he heard from cohen when he previously represented him. he represented him several years ago and according to a letter from the trump team to the district attorney, cohen waived attorney/client privilege. part of why he's able to testify to this. specifically, he is expected to talk about how cohen told him he was not aware of any criminal activity by former president trump. contradicting what cohen now has said to this grand jury and repeatedly now said publicly. the effort here is to undermine cohen's credibility, because he is really the witness at the center of this investigation, and the hush money payments he facilitated to adult film star

stormy daniels. this grand jury is looking whether the former president may have falsified business records when he reimbursed cohen. now, these are events that oh curbed approximately seven years ago. it is unclear at this point why this investigation which la been going on about five years suddenly heated up over the past weeks. over the weekend, you noted, the former president suggested he would be arrested tuesday and called on his supporters to protest. his own spokespeople came out said, look, we have no indication from the d.a.'s office he will be arrested on tuesday. as we're seeing today, additional witnesses still going before the grand jury. i spoke with one of trump's attorneys what we should expect if indicted. this is what she warned, take a listen. >> see if they arrest him. tell you what, if they choose to do so for a misdemeanor which frankly he didn't even do it is going to cause mayhem, paula. i mean, just a scary nime our country. if this is what we're doing in

this country you better secure the premises because it's dangerous. you know? people are going to get upset. >> reporter: there are, of course, concerns whether the former president is trying to speculate about timing of a possibly arrest to incite political violence and fund-raising on his truth social page amid the posts over the weekend. notably today most posts aren't calling for protests. appears advisers liking him to tamp down rhetoric on protests may be getting through. >> paula reed, thank you for that reporting. appreciate it. joining us now, cnn senior analyst a former and state prosecutor, book "untouchable: how powerful people get away with it" came out just last month. great to have you here. so much to get through all of this but zoom out a second and help people understand just how much this is just uncharted territory here. how unprecedented this is a

former president could be indicted and how you think it will have an effect, ifs it does, what plays out overish the next days and weeks? >> made it 230 years-plus as a constitutional democracy without ever indicting a president or former president. how high the stakes are here. i think looking to see what happens, of course, in manhattan. one thing that makeses it nor unusual and unexpected, an indictment coming from a county-level, elected district attorney. that's going to inevitably inject an element of politics into this. we've seen the former president and supporters saying this is a democratic-elected d.a. i know alvin bragg personally. used to work with him and do not think he is a political actor or that he is dishonest, but no avoiding that factor when you have an elected local-level d.a. bringing the first, potentially first-ever charge against a former president. >> it's notable you say the first, because there are obviously other cases looming

over the former president. staying in a 30,000-foot-view, outline for us the most likely legal reasoning for an indictment here? because this isn't so much about the payment itself but the way that the payment was documented. right? >> so important, boris, to for people to understand. not a crime to pay hush money even if donald trump knew about the hush money payment. prosecutors have to prove in the case donald trump knew the payments were falsely booked within the trump organization. that's one theory here. if these were actually hush money payments. but falsely booked at legal fees. that's a misdemeanor under new york law. a fairly minor crime. no one's going to prison for that, but you have to prove donald trump knew about the way they were accounted for. then the crime becomes a bit more serious if you prove the records were falsified in promotion of some other crime. here a campaign finance violation. you have to show payments were meant to silence stormy daniels

to protect donald trump's political fortunes as opposed to personal embarrassment. it's important what prosecutors have to show here. >> if they end up only charging him with those misdemeanors, we've heard this from a lot of house republicans, other republicans saying, oh. this is just a misdemeanor. why are they prosecuting this case? do you think it's worth still going forward if that ends up being the case? >> to be clear, a felony, class e, lowest level of felony if prove done in connection with the campaign finance crime. even if convicted would not go to prison. it will fuel the fire of critics and this conduct is far less serious than for example january 6th and less serious probably than seeing classified documents out of mar-a-lago. sort of unusual the least serious of the conduct seems to be the one that's likely to be charged first and in a way i think that will fuel opposition. >> stand by as we get more developments.

love to get more perspective as they come forward. elie honig, thank you. expand the conversation to talk about the political implications of this. gloria borger, cnn senior political analyst. scott jennings, cnn senior political commentator, once searched as special assistant to president george w. bush and a cnn presidential historian and former director of the nixon president's library. thanks to you all. gloria, start with you. the response from republicans, i find them interesting. specifically kevin mccarthy asked about this and criticized the d.a. alvin bragg, but then said something interesting. contradicted what we saw from donald trump on social media over the weekend calling for protests. mccarthy saying trump doesn't want protests? >> i think donald trump wrote "protest, take our nation back." i think that's a direct quote. if i'm not mistaken, and i think

he called for protests more than once. what mccarthy said was, if you talk to donald trump, that's not what he'll tell you. i bet the house speaker in a conversation with the former president asked him, did you call for protests? probably said, that's a terrible idea. don't do that. and so mccarthy was, i think, trying to relay the message to him from the president, but you can't take back the president's words. >> scott, i want to ask you about what house republican, doing today. now calling on the manhattan district attorney to testify. they want to investigate that federal funds were used in this local investigation. what do you make of this development and how they're going about this, and kevin mccarthy, the house speaker, allowing this to go forward? >> obviously they want to show donald trump they have his back and i'm sure hearing from people in their districts about how outraged they are. most republicans even people who

don't plan to vote for donald trump ever again think this is a highly politicized item. it's a case of campaign finance that the feds looked at and passed on once before. i'm sure republicans are calling congressional offices across the country demanding some action. the fastest way for them to get in the game allowing them to tell constituents, yes, doing everything we can here. not surprised at all they're going forward with it and, again, i think there's a key question. why did the feds pass on this campaign finance thing and alvin braeg, a few year the later, showing up, picks up the balla fair question. politics? fair question, my opinion. >> and tim, to you. help us understand the historical weight of this and ultimately given the fact that this would be a very low-level felony. are you surprised that this was the first of many potential indictments that donald trump could face? >> in the 1970s, robert borke

looked at the question of presidential immunity and concluded that presidents only have immunity from the criminal justice system while in office. before they're president, after their president, there is no such immunity. it's important to keep in mind that president, former presidents are just like the rest of us when it comes to the criminal justice system. i think the fact that a grand jury has looked into this is a sign that our criminal justice system is in good shape. it's very surprising, not surprising. a little troubling to me people are already questioning the -- reasonableness of an indictment we haven't seen yet. it's important for everybody to wait to see the indictment. the indictment might be a very strong case. in this case, mr. trump will be and is innocent until indicted.

a grand jury reasonably coming to that conclusion. richard nixon wasn't indicted because president ford pardoned him. bill clinton wasn't indicted for perjury because he came to agreement january 19th, 2001 with robert rae, the special prosecutors. and ulysses grant didn't get indicted because he waent an investor in a ponzi scheme of grant and ward, but all understood they faced possibility of indictment and so, too, much donald trump today. >> gloria, back to you and talk about the political ramifications of this. there's kind of a growing conventional wisdom among political circles that this just emboldens trump, boosts him. that it's only going to propel his run for president further as it were. what do you think is the potential political fallout here as we go into the next several weeks and months ahead? >> well, i think in the early

days, certainly. it could propel him. as we've talked about and elie honig talked about, a case not many expected to be brought. originally it was a paperwork case and now perhaps a criminal felony. people say, why are you doing this? it's seven years old and political persecution. so put that aside, though. you have to look at what's coming down the road. coming down the road is a grand jury in georgia looking at potential election fraud. attempts to fix the 2020 election. you have the classified documents case at mar-a-lago. and those are potentially much more serious charges. so if you pile one on top of another on top of another, that's a very different situation, and politicians now who are saying, oh, you know, this is small potatoes. why are they doing it? it's just political, are going to have to answer questions in

the future, well, is this more serious than that was? is this serious? are the documents serious? is the georgia election fraud case serious? if those come to pass. so they're going to have to be doing what you say in school, compare and contrast, and that's not a good situation for donald trump or for any republican to be in who is out there saying, you know, this shouldn't happen, because they're going to have to say, okay. this other thing, yeah. we really need to pay attention to it. or not. see what they say. >> yeah. the other thing coming down the road among the things that glor yo outlined, scott, is a presidential election, and i'm curious to get your reaction to the way that florida governor ron desantis, potential 20 thrival of former president trump's responded to this. he was asked about the case, and he said he doesn't "know what goes into paying hush money to a porn star to secure silence." a way to highlight absurdity of

the entire case and then criticized the attorney general bragg. how did you think he handled it? >> just fine. trump people over the weekend demanding desantis come to donald trump's defense all weekend. crazy when you think about it. donald trump spent the last couple of months calling desantis every but a good milk cow and now they want him to turn around and defend donald trump. that's not his job. they're running against each other. calling into the question the soros -- dealt with a situation for desantis in florida himself, although it was wise. then reminding people this is still a situation where somebody paid off a porn star over a possible, you know, sexual tryst and what desantis has been saying on the trail, in my administration, no drama, leaks, don't have chaos. just get things done. trying to highlight the difference between chaos trump and no-nonsense desantis what he

said today is exactly the way you do it. >> i want to say thank you to you all. stand by with us one second and back to elie honig standing by. we just heard from our panel there kind of outlining the horizon in terms of the prosecution's -- as a potential -- cases moving forward. the federal prosecution. the georgia cases. what if any, you know, impact would this case in new york have on those? >> so technically, legally, none. these are three separate pr prosecutorial entities. we have the three different areas and sometimes prosecutors get together and coordinate, we call it de conflict. no evidence they've done that here. politically or sort of bigger picture, one hand if you're merrick gashened egarland peopl what's taking so long? the fact there's any indictment may relieve political pressure on merrick garl nandgarland.

i don't love the fact the first case out of the gate is probably the weakest one and certainly on the least serious of all the conduct. sets a bad tone overall and could ultimately undermine when the other cases come along, could seem like piling on and look even more political. >> elie, quickly. congressman jim jordan and other house republicans called for alvin bragg to testify before congress. they could potentially subpoena him, but do you think the department of justice might pursue contempt of congress charges against a sitting district attorney? >> if congress subpoenas alvin bragg he is subject as anyone else may fight it on legal basis. i don't see a good reason to subpoena and question alvin bragg or any basis on which to think he's acting out of bad faith or corrupt motives or anything of the like. if alvin braggs choosing to testify he can do that. if he declines see if congress try tosses holds him in

contempt. that's ultaultimately up to doj. an interesting cross-section here between the law and politics. >> sure do. elie honig, gloria borger, scott, and thank you all for insight putting it together for us. appreciate it. so the other big news this afternoon, china's president meeting with vladimir putin for the first time since russia invaded ukraine. just days after the russian leader became a wanted man for alleged war crimes. up next, the white house's reaction to this important summit. and right now the dow is up on news switzerland's biggest bank is buying its ailing rival credit suisse. is it enough to calm financial nerves?

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secretary of state tony blinken is warning the world not to be fooled by china's peace proposals as chibese president xi jinping and russian president vladimir putin begin three days of high stakes meetings in moscow. >> it is xi's first visit to russia since putin's invasion of ukraine and the first since xi secured his unprecedented third term at leader of china.

now, beijing maintains it is neutral in this conflict and insisting that this visit is a trip for peace, but the united states is skeptical and biden officials are watching very closely for signs that china may wind up providing lethal aid for russia's war. take you to the white house now and cnn's jeremy diamond who joins us live. the white house is very clear about its skepticism over china's motives here. >> reporter: yeah. certainly are, boris. they want the rest of the world to be skeptical as well. in particular over china trying to frame themselves as some kind of peacemaker in a conflict between ukraine and russia. china there providing diplomatic cover for russia, the united states made it clear, seeking to bolster one of its important allies in the world. the u.s. in particular is honing in and what we've heard from numerous u.s. officials from the national security council spokesman john kirby to

secretary of state tony blinken. saying any cease-fire merely serves to ratify russian's gaining and reregroup. pointing out comes days after the criminal court issued an arrest warrant for vladimir putin on war crime charges. listen. >> president xi is traveling to russia days after the international criminal court issued an arrest warrant for president putin suggest it's china feels no responsibility to hold the kremlin accountable for atrocities committed at ukraine and instead of condemning them wool rather provide cover for russia to commit those very crimes. >> reporter: now, the secretary of state did also make clear there some items in china's 12-point peace plan the u.s. would support. in particular, concerns over nuclear safety. humanitarian aspects of that proposal. on the whole, u.s. officials making very clear that the world

should be skeptical of these proposals and we know as meetings continue between vladimir putin and xi jinping u.s. officials are watching very, very closely for anything. and institute served deputy secretary of defense for russia, ukraine, you're asia in the obama administration. great you have with us. thanks for being here. start with a question where you think things are headed? you said earlier this month you were skeptical russia would be able to create an alliance with china on ukraine and now three days of meetings, together face-to-face. have your thoughts changed? >> hi, jessica. thanks for having me back. i was skeptical that china would decide to actually send weapons to russia, to help russia in its war against ukraine, and i guess i would say i'm a little --

still skeptical but a little more worried, because clearly xi coming to moscow on the heels of this ikecc decision. his trip already planned. nevertheless he's coming, didn't say anything about the human rights catastrophe visited upon ukraine by russia. he could have found some language to at least chastise president putin publicly but hasn't done that yet. so it is more worrying that china might actually increase its support to russia, which is what we don't want at this juncture. >> evelyn, other than avoiding the use of nuclear weapons and humanitarian aid to ukraine, is think any word of this 12-point chinese peace plan you think you could get behind? >> i think it's dead on arrival, boris. as everyone's pointed out, it allows the russians to keep their troops occupying ukraine

which is a no-go, you know, unacceptable to the ukrainian government. president zelenskyy has said so again today. so i think as a peace agreement, sure, there are components of it that we can all agree to, but the entirety of it is just not going to go anywhere at this point in time. >> hmm. and evelyn, we know xi wants for global influence and compete with the western alliance, with the u.s. we saw china mediating a deal between iran and saudi arabia to reopen diplomatic ties. he's obviously in russia for the next three days. what do you make of these moves? >> well, i think they're very interesting, jessica. president xi has really changed chinese foreign policy and relations between u.s. and china dramatically since coming into power in 2012. prior to that the chinese government had always of put the economy and equipment development first and cast something doing for the chinese people and not as a means of

competition with the united states and others. now under xi the completely different. xi essentially said we are aligning ourselves with russia, with the non-democratic states. we don't believe in american-style democracy. sometimes he'll use that word. and we want to push back against america. we want to -- they're not trying to tear down the international order the way that president putin is. putin wants to go back to no u.n., no rules. big countries make the rules and i can grab whatever territory i want if i'm stronger as a country. xi likes the u.n. and the international order, but he wants to change the rules so that the emphasis is on sovereignty and borders do whatever you want inside your borders, abuse your people, put people in labor camps as done in his province in his own country in china. i think we're looking at a clash of kind of geostrategic great

powers. china against the u.s., with russia kind of on china's side. also, though, we're looking at, really, a difference between systems of government. this is why i have to say the war in ukraine is so important to the american people. because if vladimir putin wins in ukraine, he will continue to pressure, right now there are demonstrations held in georgia more recently. i'm not sure whether they've petered out in republic of georgia, russia continues to occupy that country. that is a target. the georgian people don't want to be under the russian thumb. it he wins ukraine he'll turn to georgia, moldavia and we will be in a world war but we want to bring the war to a close fast as possible in ukraine. by the way, a lot cheaper than fighting on and on and, of course, including more of europe and nato. >> even before the invasion of ukraine it was clear putin's aspirations and designed went

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in a major move aimed at stabilizing the global banking system switzerland's biggest bank ubs agreed to buy its ailing rival credit suisse. about 60% less than what the bank was worth when markets closed friday.

joined now by cnn's matt egan and cnn economics and economic commentator also a columnist for the "washington post." get a refresher, matt. these are not new. how did we get here? >> right. this bank a mess literally for years. we've seen officials around the world scrambling over the last ten days or so to try to put out fires. right? first silicon valley bank then signature here in the u.s. and first republic, regional lender. now all attention on credit suisse. you mentioned landing this $3.25 billion takeover deal from ubs. 6% discount where it was. a big transaction not because of the behemoth but first time since the 2008 crisis regulators allowed one of these big, global banks to merge with another one.

in fact, this time it was actually done at the behest of regulators in switzerland really worried. facing a crisis of confidence. this deal is getting applauded i think on wall street. u.s. markets moving solidly higher today. investors are hopeful that this means one of the weakest links in the system is getting strengthened. regional banks in the u.s., they're looking a bit more mixed. you can see the big board. dow up almost 300 points. regional banks are kind of mixed. first republic bank down 39% today alone on this, after credit ratings firms s&p and moody's cut first republic deeper into junk territory over the weekend. we did get positive news on the banking sector. a u.s. official telling cnn deposits at the small and midsized banks, they have stabilized. those big cash withdrawals out of the small banks into the big

banks has either eased or stopped or even reversed in some cases, and that, of course, is very encouraging and something u.s. officials are watching very closely. >> and, matt, how significant is this ubs takeover? give people perspective on that. >> yeah. i mean, i think this is a very significant deal, and i think that it shows how concerned regulators had gotten in recent days about credit suisse. this was a stock collapsing. some of their counterparties reportedly backing away from the bank, and also we saw big deposit outflows out of credit suisse. i think the good news here from a u.s. perspective is that u.s. official tells cnn u.s. banks have pretty limited exposure to credit suisse at this point. again, the hope is that this emergency rescue sort of stabilizes things. >> and give your take,

katherine, deposits at smaller and mid-sized banks stabilized in recent days. a signal things are back on track? >> we don't know if they're quite back on track. this is a positive question, i would say. but it does still look like deposits are exiting the bank, even if not -- the banks, blur plural, even in not the same as before. it's rational. if you are a depositors some smaller to medium-sized banks. particularly if you have a deposit that is not fully insured because it's a larger deposit over $250,000, you might say, hey, what's the down side of moving my money to one of these big systemically important institutions where i know it will be protected? of course, if everyone comes to the same conclusion at once you have a bank run and it becomes sort of a self-fulfilling prophecy the money in the bank is not safe. what you're seeing regulators

try to do at this point, regulators and participants in the banking system, for that matter is to try to instill confidence in these institutions saying, hey, they're safe. looks like today we may see, or in the next few days might see yet another rescue attempt for first republic bank orchestrated by jpmorgan and other big players. seen one last week for this same institution. it's all about instilling confidence so people don't err on the side of pulling out their money and making things worse. >> so much of this is a confidence game. catherine, also i want to asking awe a different topic. amazon ceo andy jazzy announcing today the company will eliminate 9,000 nor jobs. already had enormous round of layoffs earlier in the year. what do you think is going on there? >> a lot of these larger companies that expanded during the early part of the pandemic are now having to re-evaluate where they allocate their

resources. right? if you look at the retail and where housing sectors, for example, massive expansion. early on in the pandemic. now you're seeing comp assump -- consumption products you buy from amazon fall back down to earth. and amazon looks like may be pulling back on some employment in non-warehouse parts of its business. cloud computing and other sectors that may be the result of greater anxiety about the overall economy, rising interest rates, rick of recession, et cetera. it's not the only institution or major company right now is trying to re-evaluate how to position itself in this very uncertainly economy and i wouldn't be surprised if you see other big announcements from companies in the weeks or months ahead. not necessarily signaling layoffs. some may be, but other kinds of restructurings about how you adapt to this very bizarre and unpredictable set of

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seat with a seat belt. cnn's av yags expert is joining us now. pete, this isn't the first time flight attendants asked for the rule change. why go back to it now? >> jessica, the airlines and unions calling for this change for the last 30 years, but really getting new attention now, because of this faa safety summit where this came up just last week, and those turbulence incidents that appear to be on the rise. head back to december. the hawaiian airlines incident, the fly from arizona to hawaii went through severe turbulence. 36 people onboard injured including a 14-month-old baby. the faa says throughout these incidents and even worse if there's was a crash, arms are not strong enough to hold on to a baby that is in your lap. so the association of flight attendants is renewing its call to have children under 2 in a car seat onboard a commercial airliner and backed up by ntsb

chair generajennifer homendy, a regulations from the faa making turbulence a lot less dangerous. listen. >> various airliners can be very dangerous especially if not belted in. make sure you're wearing your seat belt the entire flight. not just portions of the flight. the own tire flight. the entire flight. >> reporter: this about this. 12-month-old infant, 20 pounds, average weight. 10 gs, ten times force of gravity, that makes that baby weigh 200 pounds. the former chair of the ntsb robert sumwalt says, required to put your laptop away. should be required to have a baby on your lap strapped in. something that the airlines could do on their own or the faa could do. the big thing here if you have to do this, make sure you have a

car seat front facing or rear fating with a label, red label, that says the car seat is certificated toing onboard airplanes. the forces in some of these turbulence incidents and even more extreme a crash can be really, really severe. simply say it's just not all that safe. >> yeah. really eye-opening when you put the details up there and the amount of weight you're carrying with the g forces included. pete muntean, keep us updated on that end. thanks. nearly decade-old death investigation that has tied to alex murdaugh and his family and this cold case is getting a brand new look. new details, straight ahead. i love my rings but i'll cherish that lunch... forevever. the subway series. the greatest menu of all time.

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thousands of los angeles school employees including bus drivers, custodian, cafeteria workers are set to strike tomorrow. >> and 30,000 teachers might also join the picket lines in a show of support. let's go to los angeles with cnn's camila bernal. walk us through what the strike is fundamentally about. >> reporter: hey, boris, jessica, what's interesting the union says this strike is not about the money. it's about how some of its members have been treated after being asked for additional money. in addition neal, the union was asked for about 30% in terms of increase in salaries. district was offered 15%. i talked to the superintendent, he told me, look, we're willing to go higher but we're willing to negotiate behind closed

doors. 9 union says this is not about the money but they say avoiding a strike is very, very unlikely. i talked to both sides, and here's what they told me. >> some have been harassed to the point where they've lost their job, they've lost income. >> we have not been presented with compelling evidence that there's widespread abuses. there are issues? yes. each one of them is vigorously investigated. >> reporter: now, the district says the strike is illegal. so, we're waiting for a state labor board to weigh in. in the meantime, both sides are preparing for closures tuesday, wednesday and thursday. the superintendent saying he's very worried about children not being able to go to school, are not going to have the food that they often rely on from the schools. and the union says, look, we are worried about the children, too, but if you pay us better, then you're going to have better schools. then you're going to have better

education. and they say they're going to continue to fight for this. and they're, of course, very thankful that the teachers are joining in. because that means the school will have to close. it's very complicated more than 500,000 students here in l.a., parents trying to figure out what they're doing with their children. >> we can hear them probably playing on the playground behind you, camila bernal. thanks so much. last-minute testimony in the hush money investigation against donald trump. new developments in tied to the probe in georgia. we're going to have it all for you, next. ever better. (vo) if you've had thyroid eye disease for years and you go throughgh artificial tears in the blink of an eye, it's not too late for another treatment option. to learn more visit treatted.com. that's eatt-e-d.com.

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