it. you don't want to miss it and that is it for "the willis report" don forget to do gdthe show. have a great night. lou: good evening tha 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. 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 countable and just today i directed secretary lew to follow-up on the ig audit to see how this happene 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 acti 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 th 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 th 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 d ending his previous on-camera statent regarding the ira's targeting scandal. the statement read in part " the report's findis 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 emoyees fail the test. the word if was final remod if the irs acted improperly it even if we knew that because of the ignition and apologyast week. treasury secretary jack lew the irs reports to breaks hissilence on the matter and it took five days after the revelations and secretary of n releases

owstatement minutes after the president but did not admit if anybody would be he accountable. john baker made it crystal clear he is looking for much more than 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 ban by gleaming big governmentr the a's scandal and axelrod saidart of being president is there is so mu 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 b beneficial to e white house to rease all internal e-mail's about the benghazi talking points and moments ago to release more than 100 pages of females and documents pertaini to the benghazi attack moments ago and a fulleport 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 iswn administration and it gets mplicated. the whithouse asked chuck schumer to reintroduce the shield back to limit the white house ability to

interfer 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 rticular casehy 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 of the threat that theection 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 ma show how they came up with the now infamous and incorrect talking points to call them aerrorist act ambassador rice made the round last week last september to claim the attack w the result of a spontaneous demonstration triggered by the inflammatory video release the mails today after republicans charged snippets thatecame 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

warehostruck out the references. >> what is ironic about what has been caused by this is the accusation is the white hous or others had altered the intelligence community's assessment. thats false. >> may rai plenty ofnew questions that shows the white house spokesperson also alerting colleagues the man who now heads the cia john brennan the a white house official a then boarded the changes including stripping a line from the talking points that the perpetrators hails from many sectors of libyan society thatontradicts comments from secretary carney that the only change was stylistic changing the wordonsulate 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 onsibility for the way th warehous tried to cover this up also the president himself. of eier 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 sies of problems and they all converged on one word, a trust. we lead by a consent not by mmand. 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 tforeign 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 aerson like gerald ford with his

integrity and decency to rules -- rules that said trust leaves o horseback and returns on foot. you ca 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. lo 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 i his administration had failed ethically or made a mistake. we now know poin blank this whiteouse lied to the americ people. jay carney flat out lied the administration bill to a case to suggest that the state department did n

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 tohe family members of those killed and said we will get the people and the man that did you to video. which had notng to do wi e. 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 no provided. lou: even the international red cross there is no secret about the number of groups in the 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 dd in this illustration has chosen not be honest and inde 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 samedecision 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 at the unit had moved and i have also been told durng 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 wt 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 no 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 u 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. >>applies. it is incdible and in polics we must march to the gunfire and it took david axelrod to rend the prident 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 ught 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 an conserve and confess to say i am lost and that is what the need to do. they're in trouble the 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 y a few of the rooms filled rules but to conclude with the legislative branch is article one of the constitution t executive anch 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 ts througut the broadcast. >> throughout scandal mistakes are made and this week there are big ones and the talk talk is next. house speaker says some o 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 seous matter with the wake of benghazi to change the talking points and why. your rction? >> 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 shl events before but holding

folks accountable for the shading of the trigger the manipulation of what happened before that fos are not have been and what led up tthe death of the first place we need to rememberthose who died not just of this incidence but others around the world and their families the dcision 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 administrati has misled thamerican peoplon the issue of wt happened on benghazi and the muslim video. >> it should have been

entirelypon the facts and circumstances of who knew what and when anybody directlyesponsible for the shortcomings of these cases should be directly responsible anybody aer the fact the euskera up beforehand that thing and it is what you are directly responsible for it is a shortcoming of all des 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 hi level or the low level f those you don't understand what the responsibility is. i heard about this at the town hall meetings and politil 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 ofpowers tobe selected through cable castle rock or give the stamp of approval. it is unacceptable. lou: thank you for being with us. now turng to wall street quickly record-breaking performances again today and the dow is up 60 points closing of t 20th record

hi of the year. the nasdaq is up nine points with the new 52 week high and volume on t big board picks up again after 3.6 billion shares closing below $1,400 an ounce and crude oil is up slightly. closing at $94.3 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

lou: "the washington post" fact check 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 sa during aecent whi house press briefing, this. ambaador rice talked abt the possibility of kite might be involved. also for now al qaeda tat there is n 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 ptest of cairo over the amateur and timeuslim vide we have a little problem we don't have enough done scabs to give him another then we have oba who said the facts behind the benghazi terrorist attack of them thoroughly, thoroughly investigated. >> but i pledge to the american people wa 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 administratios response to it and pickering

did not interview cretary 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 th scandal. bo and also i reaching for the dunce cap to investigate all conservative groups and just 11 last year bacchus in 2010 it is hard to square that up to dunce caps for t will conceal the hypocrisy anin washington we woul not deny those because they were good at it but in this case they were extraordinarily clumsy and washington be where the way the andals are going going

from bad to worse y can that we have ordered up a huge suly of tons caps. lou: and o.j. takes the stand and cvicted baby killer is sentenced. "dobb's law" ahead. r scott brown now may be sealed gomez taking on the massachusetts democratic establishment and joins us ne. ne. stay with us. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes make your business our business. od. helping the world keep promises.

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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 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 babiesorn 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 f decades in the house is gabriel gomez former navy seal pilot after earning his m.b.a. at harvard who lauhed 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 recordof the press a benghazi having conflicting and confusing reports and they have a common theme from down in washiton 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 paf the agenda andt will be stymied with gun-control also part of te agenda and your reaion? >> 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 b 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 reco-breaking markets and a shrinking budgeteficit? i am serious the deficit

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what's in your wallet? >> 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 tllion 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 thatas been put on at. it i partly a result slow growth with the capital gains in orde 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 becausef higher taxes and sequestration did i mention high tas? >> 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 e long run it does have its defects for people to ha 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 tremdous inflow of capital. she once gains in currency trading and the economy the ly 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 nic at the fed and in washington and some panic among those in the materials business. lou: thank you for being with u. in us torrow 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. scaal. those are answers he to get them from his own brother we will tell you about family confusion. the "a team" tes that up. next. it's a brand new start. with centurylink visionary cloud infrastructure, and custom cmunications solutions, your business is more reliable, secure, and agile.

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if. lou: in our curious moments more iron 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 callin 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 po fox news contributor michael goodwwn, and mary ann marsh. good to be here.

this is a mess for this whithouse. tall us your reaction and your thoughts. >> the warehouse is now doing what i wished it would ve done 48 hours ago for the president to come out the acting commissioner has resigned, holder in fronof the committee, e-mail's about benghazi if this happened 48 hours ago i think the white house would be bter 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 whi house had li to the american public about the talking poin. >> about benghazi there a 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 involves dead americans. now all of these are metastasizing so they t 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 behazi they will threlease. lou: was the early dump as a stet 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 turnsut that is exactly what happened. >> a 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. that is what we see d 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 tget an that is ver goodnd tre rubs off on the president's own credibility so jay carney has to load of bcks on his shoulders >> he is somethin of a lousy client bause this president whwent out in front of cameras and reporters aggressily as is often theay wi 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 ll make sure there is no therand 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 plipp affect republican asked for talking points and we got them mths 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 th 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? >> thiss where republicans have troubleouannot have it on both ways.

lou: adults think the republicans are in trouble. you are trying to do so that e president and his attorney general decided to trample on the first amendment on that edors and reporters. >> you canake exception if they did it well or not. lou: well? i don't think there isell when you travel on the constitution. >> it was obviously the broad overreach. >> but publicans will overreach this is back across the board. >> so that ally 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 aboutwas a challenge to the white house and the state dertment. so that put a facend name on the whistle-blowers who beforeas hidden and "muzzled" by the warehouse. lou: what point ( does it occur a broad survey of misconduct and values bore 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 perpuated 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 president of the united states. lou: these scandals revealed conduct that amounts to a war of citizens against a country that the irs would tolera as it did in its senior position this type of conduct that has been laid out before us, to insult the american people a lied to them ther directly or throh his agents or jay rney or secretary of state how does he recover? >> i think he ll. the house go infront of the country tuesday people are going to jail. lou: talkining about the i.r.a. >> not saying who or when or why was irresponsible. they overplayed their hand anto go into the election

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neil: what the fox. it is not just fox. you kno things are bad f the white house when all the dia is turning on the white house and not just the medi take a look at this. >> the procedures you have or limitations you put on your jtice 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 isnexcusable. >> 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