it. you don't want to miss it and that is it for "the willis report" don't forget to do gdr the show. have a great night. lou: good evening thank you for being with us breaking news on three major scandals posing a threat to the obama administration, the irs, benghazi and the department of justice assault on the first amendment rights of the associated press. we begin with the brewing i.r.a. scandal president obama speaking moments ago after he met with senior treasury officials on the i.r.a. situation and confirming the personnel changes are of the way. >> we will hold the responsible parties accountable and just today i directed secretary lew to follow-up on the ig audit to see how this happened and

who is responsible to make sure we understand all the facts. today secretary lew took the first debt by requesting and accepting the resignation of the acting commissioner of the irs because given the cootroversy surrounding this audit is important to institute new leadership to help restore confidence calling for word. lou: a stunning turnaround in just 24 hours and it began with press secretary carney refusing to it meant the irs had done anything wrong. here is what he said yesterday. wait for the action of the independent investigator the inspector general before we can jump to conclusions about what happened whether there was a deliberate targeting of groups in appropriately and if that is the case what action should

be taken. >> part of that has been leaked and the full report made public just hours after he spoke and the tone coming out of the white house began to change quickly. the president released a statement last night and ending his previous on-camera statement regarding the ira's targeting scandal. the statement read in part " the report's findings are intolerable and inexcusable the irs must apply the law in a fair and impartial way and its employees with the utmost integrity this report shows that some of the employees fail the test. the word if was finally removed if the irs acted improperly it even if we knew that because of the ignition and apology last week. treasury secretary jack lew the irs reports to breaks his silence on the matter and it took five days after the revelations and secretary of new releases

own statement minutes after the president but did not admit if anybody would be held accountable. john baker made it crystal clear he is looking for much more than a resignation or a firing. >> someone made a conscious decision to harass and hold up the request for tax-exempt status. >> my question is not who will resign but who was going to jail? lou: senior advisor david axelrod enter the picture and ducks arrive began by gleaming big government for the ira's scandal and axelrod said part of being president is there is so much be neece you you cannot know because the government is so fast. he also weighed in on the

benghazi that'' max this story is b.s. but he did say it would be beneficial to the white house to release all internal e-mail's about the benghazi talking points and moments ago to release more than 100 pages of females and documents pertaining to the benghazi attack moments ago and a full report of this major development straight ahead. but the circumstances still devolving of the associated press phone records leading the president to call for legislation to be introduced that it once opposed a bill that is essentially pretexts the nation's journalist from mr. obama is own administration and it gets complicated. the white house asked chuck schumer to reintroduce the shield back to limit the white house ability to

interfere with news organizations or make reporters reveal their sources and today we found out about the attorney general does not know and varied little about what he does during testimony in front of the house judiciary committee. >> one of the compelling process from a media outlet is to give notice do you know, why that was not done ? >> there are exceptions to the rule i do not know with regard to this particular case why that was or was not done. i don't have a factual basis for that queetion. >> over the course of 24 hours obama masters lead changed its tune while trying to turn the direction of the threat that the scandals pose to the presidency. now to the benghazi e-mail's the white house had more

than 100 pages of the males for the talking point* on did deadly attack and the document uniquely timed with the president's actions on the irs and for much more reid turn to fox business washington correspondent peter barnes. >> the white house and cia e-mail show how they came up with the now infamous and incorrect talking points to call them a terrorist act ambassador rice made the round last week last september to claim the attack was the result of a spontaneous demonstration triggered by the inflammatory video release the mails today after republicans charged snippets that became public show members of the president's staff were involved to alter the talking points to eliminate references to terrorism or al qaeda in the e-mail show the cia not the

warehouse struck out the references. >> what is ironic about what has been caused by this is the accusation is the white house or others had altered the intelligence community's assessment. that is false. >> may raise plenty of new questions that shows the white house spokesperson also alerting colleagues the man who now heads the cia john brennan then a white house official and then boarded the changes including stripping a line from the talking points that the perpetrators hails from many sectors of libyan society that contradicts comments from secretary carney that the only change was stylistic changing the word consulate to the word

diplomatic facility in the editing process. >> with the benghazi talking points must be frustrating right now and my ffrst guest sees it as a cover-up from the beginning and joining us now is donald trump's fall former secretary of defense with george w. bush and author of the book and leadership lessons of politics and mr. secretary great to have you. you knew since the october this was a cover-up and the responsibility for the way the warehouse tried to cover this up also the president himself. of easier oppression to make that statement with what we now know. >> the former chief of staff of the white house i would

describe this as the perfect storm. a series of problems and they all converged on one word, a trust. we lead by a consent not by command. and to be persuasive they have do trust you and with a series of things with benghazi in the way it has been handled by the white house and the attentiveness of the president, of this so-called leading from behind is not only with respect to foreign policy but domestic and white house policy, it erodes trust and i got the call back from president ford after the nixon resignation and the reservoir of trust had been trained in it to a person like gerald ford with his

integrity and decency to refill that trust and it was mark twain in rooms faults rules -- rules that said trust leaves on horseback and returns on foot. you can lose it fast but it takes a long time to rebuild that. it is unfortunate because it is an important country and the office for the presidency is important but the way things have been handled have eroded that trust. lou: this president making the rash judgments he did in front of the national media media, he was an angry man that anyone should even suggest that he or anyone in his administration had failed ethically or made a mistake. we now know point blank this white house lied to the american people. jay carney flat out lied the

administration bill to a case to suggest that the state department did not alter intelligence assessments of benghazi and good lord we don't know what else because we have only begun to go to those hundred females. add to that the benghazi situation the president went to the un and secretary of state clinton went to the family members of those killed and said we will get the people and the man that did you to video. which had nothing to do with the. that people on the ground new the attack against the benghazi facility was well armed and they had been warned to and they had been pulled out beforehand and proper security was not provided. lou: even the international red cross there is no secret about the number of groups

in those affiliated with al qaeda who remained vigorous. >> you are hearing in hallways which scandal is the biggest or the worst. to me, the worst is benghazi because four americans died in this illustration has chosen not to be honest and indeed part of this administration has lied. you talked about trust. you are concerned about the four americans because it did not go to the rescue. somebody was told to stand down. bob gates, one of your successor said he believes as he understands it would make the same decision i have to ask you if you can give us judgment given the facts that you know, what your judgment would have been in such circumstances.

>> i don't know. what you don't know, say you don't know and don't be shy. i want to hear the hearings go forward to find out what took place and i have been told the contrary that the unit had moved and i have also been told during an entirely different reason there was a unit and tripoli that had capability with airlift and weapons. i don't know the facts and who could have gotten there in what period of time but we have a history as a country to lookout for people and he's trying and i have respect and bob gates who was agreeing with and i am not there. i want to know precisely what took place and the sense that i have is it is

probably too bad they were told to stand down the. lou: that need to you one other reason why let's just put up a few to see how these rules pertain in your judgment. and the two most important rules are the cover-up is worse than the event and will never to no one ever remembers the first rule. >> it applies. it is incredible and in politics we must march to the sound of gunfire and it took david axelrod to remind the president and the staff that was the case that is why they change direction. >> it sounds like it but the president during ben gauzy apparently according to people bought in

communication then left town and that is not running in the direction of gunfire. when i was a navy pilot the flight manual said if you're lost kleinman, get altitude and conserve and confess to say i am lost and that is what they need to do. they're in trouble they need to get it out there and let people know and let the facts determine how would sorts out. trimming and bobbing and weaving and ducking does not work. >> i am not sure this is in the president's character but i am showing you a few of the rooms filled rules but to conclude with the legislative branch is article one of the

constitution the executive branch is an article from back to that is not an accident. thank you for being with us it is available on-line go to lou dobbs., you can find links to the book and more on benghazi and the other scandals facing this throughout the broadcast. >> throughout scandal mistakes are made and this week there are big ones and the talk talk is next. house speaker says some of the irs is not just getting fired somebody is going to do jail. stay with us.

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lou: next guest says audit is lost 10 did as quickly diminishing he is demanding answers to the federal government serious is this steps and the scandals that are now threatening the white house. joining us now is number of energy and commerce committee great to have you with us when we start with benghazi and the males and a number that contradict the statements this looks to be a serious matter with the wake of benghazi to change the talking points and why. your reaction? >> i agree completely we have told folks accountable for their actions after what happened in the wake of the

event but i don't think we shall lose sight of the events before but holding folks accountable for the shading of the trigger the manipulation of what happened before that folks are not have been and what led up to the death of the first place we need to remember those who died not just of this incidence but others around the world and their families the decision to send in into harm's way ed is the only way we can surely honor the dead to make sure this never happens again. lou: in the-- leading up to the weeks reduce the did not increase security and no one has ben held accountable. we know that this administration has misled the american people on the issue of what happened on

benghazi and the muslim video. >> it should have been entirely upon the facts and circumstances of who knew what and when anybody directly responsible for the shortcomings of these cases should be directly responsible anybody after the fact those euskera up beforehand that thing and it is what you are directly responsible for it is a shortcoming of all sides of the transaction the president changed his tune and tone in taking action to relieve the commissioner of the irs. but that is it. your thoughts on the i.r.a. scandal the targeting of conservative groups in denying them there tax-exempt status because of the ideology she's doing and

after a high level or the low level for those you don't understand what the responsibility is. i heard about this at the town hall meetings and political profiling is unacceptable for any purpose in the government especially the awesome power the irs has to enforce its mandate to make sure those pay what they owe. the idea they would use that power or have a slant how they enforce those awesome powers is an acceptable. our friends on the writer justifiably on the right is a subset of focused on their side but nobody should rest easy with the branch having this type of powers to be selected through cable castle rock or give the stamp of approval. it is unacceptable. lou: thank you for being with us. now turning to wall street quickly record-breaking

performances again today and the dow is up 60 points closing of the 20th record high of the year. the nasdaq is up nine points with the new 52 week high and volume on the big board picks up again after 3.6 billion shares closing below $1,400 an ounce and crude oil is up slightly. closing at $94.30 a barrel and the bond market fell at 1.9% 4%. up next the washington post giving out a pinocchio but we give up the dunce cap to the lucky recipients to mess it up. we have that tonight on the "chalk talk."

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and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the queion is how do you make sure you have the money you need to enjoy all othese years. ♪ lou: "the washington post" fact checker does a great job by the way and hands out

pinocchio from politicians to don't tell the truth and in this broadcast week about a dunce cap the first will be so that on jay carney. he is working hard and said during a recent white house press briefing, this. ambassador rice talked about the possibility of kite might be involved. also for now al qaeda that there is no effort to play that down. >> ambassador rice went on five sunday morning talk shows on september 16th of last year and said the words al qaeda in this is what she said. whether al qaeda affiliate's for libyan based extremist or al qaeda itself it was

after what she said happened in benghazi was a protest of cairo over the amateur and time muslim video. we have a little problem we don't have enough done scabs to give him another then we have obama who said the facts behind the benghazi terrorist attack of them thoroughly, thoroughly investigated. >> but i pledge to the american people was we would find out what happened and over the last several months there was a review board headed by two distinguished americans who investigated every element. lou: actually mr. president that we view board did not take a look into every element of ben gauzy but looked at the security matters before the attack but not those responsible

for the administration's response to it and pickering did not interview secretary of state hillary clinton. i am sorry mr. president but you knew better. you had to. so there you are. we have senate finance3 committee max baucus both democrats blasting the irs and demanding hearings on the scandal. both and also i reaching for the dunce cap to investigate all conservative groupsst 11 las in 2010 it is hard to square that up to dunce caps for not will conceal the hypocrisy and in washington we would not deny those because they were good at it but in this case they were extraordinarily clumsy and

washington be where the way the scandals are going going from bad to worse you can that we have ordered up a huge supply of tons caps. lou: and o.j. takes the stand and convicted baby killer is sentenced. "dobb's law" ahead. for scott brown now may be sealed gomez taking on the massachusetts democratic establishment and joins us next. stay with us. she's still the one for you

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and a 30-tablet free trial. are you ill sleeping? st wanted to check and make sure that we were on schedul the first technology of its kind... mom and dad, have great news. is now providing answers families need.

siemens. answers. ♪ right. but the most important feature of all i.. the capital one purchase eraser. i can redeem the double miles i earned with my venture card to erase recent travel purchases. d with a few clicks, this mission never happened. uh, what's this button do? [ electricity zaps ] ♪ you requested bkup? yes. yes i did. what's in yo wallet? lou: in an arizona jurors decided jody areas is eligible for the death penalty for the murder of her boyfriend travis alexander. o.j. took so witness stand to get a new trial on his arm robbery and assault and kidnapping conviction that

his former attorney gave him bad legal a vice and told him he could use some force to reclaim his memorabilia from dealers and abortion doctor sentenced to three consecutive life sentences in the deaths of babies born alive then killed at his philadelphia clinic. and the possibility to take control of the senate and a special election on june 25th to replace john kerry and the next guest going up against a 19th term democratic congressman spending for decades in the house is gabriel gomez former navy seal pilot after earning his m.b.a. at harvard who launched a career in private equity. let's start with the scandals in washington.

that is as big a mess in washington d.c. and this is what you want to get involved in? politics? given these three scandals with the irs with political belief and the justice department seizing the records of the press and benghazi having conflicting and confusing reports and they have a common theme from down in washington d.c. and the lack of transparency it is indicative of why we need new people in washington d.c. and to rebuild congress. >> it is that the all-time low of approval and the president's numbers are sinking in he is mired cliff in scandal. how the gang of 8 is part of the agenda and it will be stymied with gun-control also part of the agenda and your reaction?

>> it is unfortunate and indicative of how dysfunctional it is and to highlight the mistrust of government and the fact this has ben people have been there forever just like going of career politicians literally since i have played little league baseball even before tom brady was born but unfortunately all so hyper partisan who votes 99% with his party in how you get things done when yoo cannot reach across the aisle? lou: day. ♪ being with us. we look forward to talking to you again. >> i look forward to coming back. >> the budget deficit is shrinking quickly we will talk about the

record-breaking markets and a shrinking budget deficit? i am serious the deficit dramatically lower. next. we're not in london, are ? apparently my debit card is. what? i know. don't worry, we have cancelled your old card. great. thank you. in addition to us monitoring your account or unusual activity, you could alsoet up free account alerts. okay. [ female announcer ] atells fargo we're working rounthe clock to help protect your money and financial informaon. here your temporary card. welcome back. how was london? [ female announcer ] when people talk, great things happen.

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we're not simply saluting history... we're making it. >> the federal budget is a visit expected to shrink this fiscal year after four years of deficit of $1 trillion of expected deficit and expected to be close to 1 trillion although the cbo informs us. and former morgan stanley partner good to have you here. can you believe we're saying this? the deficit is shrinking are you impressed? with this bill and that has been put on at. it is partly a result of slow growth with the capital

gains in order to avoid the increases the cbo forecasts are notorious for being inaccurate. lou: but we're looking at a good deal we see the numbers shrank because of higher taxes and sequestration did i mention higher taxes? >> you did but you did omit to say one of the important shrinkage is aside from the federal government that the theocracy is a good thing in the long run. it does have its defects for people to have jobs in the real economy and moonlighting. lou: talk about the real economy looking at economic growth.

we have a dollar that is strengthening and bond deals that are rising that this is the panoply from the market's. lou: it does have its momentum and it has a tremendous inflow of capital. she once gains in currency trading and the economy the only one showing a polls. lou: your judgment? >> even the last time we talked about the unusual circumstances of the fall of industrial production while gdp report's will look a little better. so my own forecast is the same gdp grows bigger this

quarter than expectation and and industrial production as of fell falling to 75% creating another panic at the fed and in washington and some panic among those in the materials business. lou: thank you for being with us. join us tomorrow we're joined by the chairman of the house judiciary committee from virginia. up next congressman looking for more answers on the i.r.a. scandal. those are answers he to get them from his own brother we will tell you about family confusion. the "a team" takes that up. next.

if. lou: in our curious moments more irony that and you can stand and i told you in the talk dachau carl levin repeatedly pressed the irs last year to investigate those conservative nonprofits. his older brother the ranking democrat of the house ways and means committee is now calling on irs officials including the acting commissioner to resign. it may be awkward in family times the rest of this year joining us now is monica crowley, new york post fox news contributor michael goodwwn, and mary ann marsh.

good to be here. this is a mess for this white house. tall us your reaction and your thoughts. >> the warehouse is now doing what i wished it would have done 48 hours ago for the president to come out the acting commissioner has resigned, holder in front of the committee, e-mail's about benghazi if this happened 48 hours ago i think the white house would be better off and will continue to be more aggressive to get this behind them. lou: if that happened 48 hours ago we would have known to days earlier that the white house had lied to the american public about the talking points. >> about benghazi there are so many scandals is difficult to keep track. they are in severe damage control the president cannot about the i.r.a. scandal and the benghazi scandal because

it involves dead americans. now all of these are metastasizing so they try to stop the bleeding radicand but the problem is now they have taken on a life of their own with the benghazi e mails we had ed news lew released by the white house only 100 pages jason j fits one of the folks leading the charge claims there are 25,000 related to benghazi they will the release. lou: was the early dump as a stylet the way house press secretary or hillary clinton are contradicted by the evidence and it is stunning because jay carney himself said that is a central issue and the idea that the white house is involved in shaping or changing or eliminating intelligence agency assessments it turns out that is exactly what happened. >> and it points the finger

at hillary clinton that the state department takes the lead to get any reference to al qaeda out of the documents. so far that is what we see and i agree with jay carney. he has not helped the president this week and had a difficult point* to represent but she representee him badly and made himself the target and that is never good and there rubs off on the president's own credibility so jay carney has to load of bricks on his shoulders >> he is something of a lousy client because this president who went out in front of cameras and reporters aggressively as is often the way with great hostility effectively attacked the media compliant and composite with this administration this year out

he insulted and said it was a sideshow and there is no there and to say that to a group of journalists they will make sure there is no there and to even now as a broad strip -- spectrum politically looking at how what is there. >> i see it differently. if you look at theepoll numbers the president has better poll numbers they of congress or the media and if you separate the scandals benghazi you can deal with those especially philipp affect republican asked for talking points and we got them months ago now is a scandal six months later. lou: the clear. what happened was the house oversight committee leading the investigation did not get that opportunity to look over the males and that did not happen at all.

that carries of further misstatement that there had been a thorough investigation by the review board. >> did not purport to do so the president misstated and that is why i have to interject. >> the original request for the talking points last fall came from congress to petraeus you ask for points you get them within six months later it is a scandal also the republicans in congress were pressing to be tougher they did it now they're complaining about tobacco to the irs 37 you said the president had to do what he was told to do by a extraordinarily weak people making serious misjudgments about security and the constitution of the united states?

>> this is where republicans have trouble you cannot have it on both ways. lou: adults think the republicans are in trouble. you are trying to do so that the president and his attorney general decided to trample on the first amendment on that editors and reporters. >> you can take exception if they did it well or not. lou: well? i don't think there is well when you travel on the constitution. >> it was obviously the broad overreach. >> but republicans will overreach this is back across the board. >> so that really smells for the white house. >> don't forget the testimony of the whistle-blowers from benghazi and that is what changed the narrative. they showed what the

president and jay carney had been saying simply is not true the idea there wasn't time and every detail they talked about was a challenge to the white house and the state department. so that put a face and name on the whistle-blowers who before was hidden and "muzzled" by the warehouse. lou: at what point ( does it occur a broad survey of misconduct and values before the american people? i don't know of which they can recover. >> i am not sure it does because president obama is a unique and narcissist and does build the personality that the league has perpetuated to buy into to protect and insulating himself. so struck his tenure he has

been ignored without having to perform and that is a serious dynamic for a president of the united states. lou: these scandals revealed conduct that amounts to a war of citizens against a country that the irs would tolerate as it did in its senior position this type of conduct that has been laid out before us, to insult the american people and lied to them either directly or through his agents or jay carney or secretary of state , how does he recover? >> i think he will. the house go in front of the country tuesday people are going to jail. lou: talking about the i.r.a. >> not saying who or when or why was irresponsible.

they overplayed their hand and to go into the election if everybody stays focused lou: i have got to go. we thank you for being with us tonight. good night from new york. ..

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introding cash flow insight powered by pnc cfo. a suite of online tools that lets you turn insight into action. neil: what the fox. it is not just fox. you know things are bad for the white house when all the media is turning on the white house and not just the media. take a look at this. >> the procedures you have or limitations you put on your justice department, the president has no limitation. >> that still doesn't answer the question what he faced being called accountable means. should people lose their job. >> what the irs did of course is inexcusable. >> the actions of the department have in fact impaired the first amendment. >> said that this process has been contaminated maliciously, so why don't you let -- >> take a look at what you're describing. >> owe mother [bleep]. what