we have a lot of differences. they're weak on crime. they're weak on illegal immigration. they want illegal folks to come pouring into our border. a lot of problems are being caused although we stopped it to a large extent as much as you can without the wall which we're going to get, they, before this meeting, before this missile launch much, they have been weak on military in terms of spending. very hard to get military. they want it for a lot of other things but military is always secondary to them. military to me, number one, we won't be here without our powerful military. we're building up stronger, bigger, better than ever before. general mattis can testify to that. and the other thing they want tax increases. we want major tax decreases. so they decided not to show up. they have been all talk and they have been no action, and now it is even worse. now it is not even talk.

so they're not showing up for the meeting. i will say this, in light of the missile launch much, probably they will be here fairly quickly, or at least discussions will start taking place fairly quickly. i think that we're in a very good position in terms of the meeting we just had over at the capitol with the republican senators. it was outstanding. i think we have tremendous support. i was just informed by mitch had a unanimous vote from the republican side at least. we had a unanimous vote on the tax bill, and it goes now, the next step. i think we're going to get it passed. i think it will be passed. the senate will be very popular. it will have lots of adjustments before it ends but the end result will be massive, largest in the history of our country, tax cut, and lots of good things are going to happen, including the, bringing back to our country of, probably will end up

being, over $4 trillion, money offshore that's stagnant, that companies and just not able to bring it back. so i think it will be a number over $4 trillion. corporate will be able to compete now against the world. if you look at china, if you look at so many other countries, look at many other countries, china at 15%. they're lower than us. we're getting it down to a level that will either be lower or right in the ballpark, so we can compete much better with our companies, our great, great companies. that means jobs. that means lots of other things. i'm very happy to see that the consumer confidence level is just about the highest it has ever been. in fact, i don't want to make any mistakes in front of the press because you will get me on it, but to the best of my knowledge, it is highest it has ever been. consumer confidence has been setting records. they have confidence in people leading share country. i will say i think it will go

better and better. i do believe this vote on taxes, which are really tax cuts and reform, is going to be very, very important. so, we had a good day today. we had a phenomenal meeting with republican senators. we had, it was very special, that meeting. many respects i wish you could have been inside of that the room. it was very, very special. the comradery. it was somewhat of a love-fest. they want to see it happen. they want to see it happen not only for the republican party but i think much more importantly they want to see it happen for the country because know how important it is for to us compete and win. with that maybe start with paul ryan, say a few words where we stand with different things. i will ask mitch mcconnell. >> okay. just briefly say i think it is regrettable our democratic colleagues in leadership chose not to join us today. for a bill become law, congress has to pass a bill. the president signs a bill. that means congress and

white house always negotiate legislation. we have important work to do. we have big deadlines to meet. we have military in need of our support. that work need to happen now. i think it is very regrettable that our democratic colleagues in leadership chose not to participate because we have to negotiate these bills to get this work done for the people we represent, especially to help our military, with the difficult situations we have. i just hope that our friends in leadership on the other side of the aisle will choose to participate so we get the peoples work done. >> thank you. >> mr. president, i would just add, i've been in this position under a couple of previous presidents. i can't recall ever turning down opportunity to go down to the white house. as speaker mentioned, only one person in america can sign a bill into law, that is the president of the united states. you can not negotiate year-end, omnibus spending bill without the person who signs the bill in

the room. so i think the democratic leaders in the house and senate need to understand the way the government works and we, administration, has to be a part of the ultimate negotiation over what the spending levels is going to be for the next year. >> we are very far apart. because our views on crime and our views on immigration and the military, so many, are different. but a lot of things have happened even over last two hours with respect to the missile launch much. we want our military funded, we want it funded now. it is going to be bigger, better, stronger, already is than ever before. we want to get going now. that is the difference in all fairness from this morning, when i told them that we're way, way far away. and with that i may just have general mattis say just a couple of words about what he has found out. general, do you want to say a couple of little pieces of

information? >> mr. president, senator, speaker, a little over 2 1/2 hours ago north korea launched an intercontinental ballistic missile. it went higher frankly than any previous shot they have taken. it is research and development effort on their part to continue building ballistic missiles that could threaten everywhere in the world basically and in response the south koreans have fired some pinpoint missiles out into the water to make certain north korea understands that they could be taken under fire by our ally. but the bottom line it is continued effort to build threat, ballistic missile threat that endangers world peace, regional peace, and certainly the united states. >> thank you, general. and we will take care of that situation. thank you all very much. i appreciate it. thank you. [shouting questions]

>> change anything about your basic approach? >> nothing changed. nothing changed. >> do you believe -- >> very serious approach. nothing changed. we take it very seriously. [shouting questions] >> would absolutely blamed democrats. if it happens it will be over illegals pouring into the country. crime pouring into the country. no border wall, which everybody wants. i got elected partially because of a border wall. you look at the military. we want strong funding for the military. they don't. so many things. as an example they want high taxes. we want to cut taxes. we're going to cut taxes. we're going to reform. we're going to simplify. they want high taxes. we want low taxes. so, because a lot of big differences we'll see what happens about a shutdown. we'll see. things changed over last two hours because two hours ago a missile was launched.

i think that will have huge effect on schumer and pelosi, i think. we'll see. we'll learn very soon. they should be calling immediately, saying we want to see you, but probably they won't because nothing to them is important other than raising taxes. that is the only thing they like doing is raising tax. thank you all very much. appreciate it. [shouting questions] reporter: are they thumbing their nose at you? >> thank thank you. >> thank you. david: that is the last bit from this. melissa: you always have to listen, because they throw in one more question, you never know when he will answer there. is important stuff going on there. david: a lot of important stuff here domestically with tax cuts and overseas with north korea launch of the icbm. think of a market that is up 255 points, over 1%, on the same day that we hear there is icbm launch by north korea that has gone 1000 miles higher than any

previous missile. look what the market has done. you got to think they are optimistic about tax reform. melissa: no. absolutely. you would think that the reaction would be absolutely in the opposite direction. but you heard the president there. he said nothing has changed in his stance on north korea. although they are acknowledging that is a missile that flew higher and further than anyone before. greetings, welcome, everyone, i'm melissa francis. david: and i'm david asman and this is "after the bell." we have a lot to put it, mildly, of news to cover here in the next hour. let's to straight to blake burman to break it all down for us, what we just heard what son the president's mind. we know tax reform is there but north korea squeezed its way in today. reporter: two unexpected events, david, north korea launching that missile 2300 miles up into the air. a missile in theory could touch any single part of the united states should the north koreans want to send it in that direction. the second unexpected a domestic political event and chuck schumer and nancy pelosi

canceling a previously-scheduled oval office meeting with president trump to talk about how to bridge the gap with the december 8th deadline to fund the government. what you just heard from president trump there minutes ago, seconds ago, trying to lump those two unexpected in together saying hey look, north korea just launched the missile. i think chuck schumer and nancy pelosi, the president's words, now might come to the table because the president thinks that they might think that changes whole calculation of it all. the point the president was trying to drive home there, there needs to be a boost in military spending. the president contends that democrats do not want that. the president tried to drive home the point that he thinks he is on the right side of the issue but even more so politically, that he thinks that chuck schumer and nancy pelosi now should return to the bargaining table as it relates to the government spending bill that needs to be hashed out by next friday, in light of what we just saw from north korea.

those were two unexpected. then the expected at least in some form was this vote today from senate budget committee. now we know that the budget committee has passed that tax bill, that will now go to the rest of the senate for an up-or-down vote. the administration, republicans, remain hopeful in that. the president went up to capitol hill to sort of rally republicans. senate republicans are behind this. it does not appear they have gotten to that number 50 but no matter what the president said he felt there was, it was meeting a quote phenomenal meeting. he said it was very special, a love-fest. they said they want to see it happen. speaking of republican senators. three huge stories today. two of them, seemingly out of left field. president trying to drive home a couple different political points. one saying, we will protect us, he will protect us, the military will protect us from north korea. schumer around pelosi need to

come to the table and tax cuts he thinks will still happen. david and melissa. >> blake burman, thank you very much. melissa. melissa: president trump meeting with senate republicans hoping to turn yes votes. senator steve daines from montana says he can't vote for the bill. we're glad to have you here. let me get a comment from you on the missile launch much from north korea. americans are on edge. president says nothing has changed. he will protect us in essence. what is your take? >> this is day to be thankful we have president trump in the white house. president trump believes in that ronald reagan doctrine of peace through strength. i was on the north korean border in september. met with general brooks, our four-star in charge of the unified forces there. i'm grateful we have a president that understands you can't sit back and do nothing like we saw happen with the prior administration. north korea responds to strength. that is, they're a bully.

and, president trump has made it very clear that he is not going to stand back and let this just unfold. he is going to do something about it. i'm grateful, for his leadership. that is why you saw despite a icbm launch from the north koreans today, you still saw equity markets, over 260 points today on the dow? that shows the confidence the american people have in this president in terms of securing our nation as well as insuring we have good domestic policy going forward. melissa: it may show pressure on you to vote, yes, sir, a lot of numbers baked into the market that idea of tax reform is on the way and tax cuts. where do you stand right now. >> yeah, absolutely. let me say this i had excellent discussions. i spoke with the president. he called me from air force one this weekend. i spoke with vice presidents pence, gary cohn, secretary mnuchin. today's lunch is excellent. we're talking about what we can do a few things to get the bill better to pass it in the united states senate. i worked with the committee. i met with leader mcconnell, john cornyn, the senate finance

committee. my issue insuring that main street businesses are treated fairly in this tax bill. you look where the primary economic growth occurs in this country. 55% of the private sector jobs come from main street businesses versus large corporations. so this is about insuring that our pass-throughs, these main street businesses get treated more fairly in this tax bill. we're very, very close. melissa: you say you're getting close but earlier today you said you spoke with senator cornyn. i heard him in an interview saying what you were looking for was a tax cut on that last top 2% on the business pass-through. that they were willing to to lower taxes for everyone else but the top 2% of small businesses they didn't want to meet you on that turf because those people were just making too much money. did you have a separate conversation with senator cornyn that was more constructive than that response we heard on tv? >> yeah. no. we're looking at taking to call it overall discount. 17.4% today. i would like to see that move to

20%. that would apply to all pass-through businesses or main street businesses. >> are they going to give it to you? >> i tell you what? i think we made a lot of progress today. i'm optimistic we'll see a good outcome. melissa: is a good outcome do you have to have the 20%? is there something in the middle? when you say they made a lot of progress do you feel they will come to your side the table? >> i do. it was one hour discussion. i felt very much that the issues i presented on main street businesses were heard, they are listened to. i'm optimistic. look what is going on right now in our country with the equity markets. we need to get a tax cut bill passed on the president's desk. i'm confident we'll get there. melissa: the president real quick described it as a love-fest? do you see 50 votes? do you think who is hanging around with a no? >> you never know about the united states senate, but i truly think momentum is going in

that direction. obviously margins are thin. it was a very good meeting with the president today. i would characterize as constructive. there were a lot of questions and answers. a lot of back and forth dialogue with the president. i think the momentum is building here. we're called a deliberative body for a reason. to make the bill even better. fighting on behalf of main street businesses. >> what is senator mccain's body language? that is something everybody is worried about? did he look like he was a yes? what is your read? >> there were 50 some senators were in the room. i can't tell what you senator mccain's body language was. the president was warmly, enthuse as exly received during the hour-long dialogue. melissa: no pressure. market is watching you. your every single move. thank you so much. will you come back and tell us more about the progress because our viewers really care? >> we will keep you posted. i left the private sector after 28 years for moments like there. melissa: you know. >> take more money from

washington d.c., put it back in the pockets of hard-working americans. we've got to get this done. better is possible. stay tuned. melissa: amen. thank you, sir. appreciate it. back to work. >> you bet. david: love the optimism f we didn't have enough news. breaking news on verdict of trial for the chief suspect in the deadly 2012 attack in benghazi. his name is abu khattalah. he was only found guilty of three charges, but he will not face the death penalty. these chargeses were lesser of the 18. melissa: a lot going on. north korea firing a intercontinental ballistic missile. this flying higher than the nasa space station with capability of hitting anywhere in the u.s. lieutenant-general thomas mcinerney what happens now. david: u.s. district court hearing underway, right now, a ruling could come out any minute. this is over who should head the

consumer financial protection bureau. who is in charge? the white house urging the judge, to leave president's pick, mick mulvaney in place. as the agency's creator liz warren lead protests against him so what else is new? how's your mother? umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. the mountain like i used to. i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but whatever trail i take, i go for my best. so if there's something better than warfarin, i'll go for that too. eliquis. eliquis reduced the risk of stroke better than warfarin, plus had less major bleeding than warfarin. eliquis had both.

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and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. melissa: huge day from washington to wall street. dow plummeting more than 100 points this afternoon, before recovering and rallying up nearly 250 points. a new record high, the biggest 1% rally since september. nicole petallides on floor of new york stock exchange. well, that was a wild ride, nicole. break it down for us. >> indeed. you saw that great board there. you saw 27 of the 30 dow components had up arrows. that really shows you momentum

and market breadth we had going into the back hatch of the day, these last couple of hours as you notice, we sold off on north korea headline, only to regain momentum with the dow, nasdaq, s&p 500 and russell all at highs. and so with that, we saw gains across the board. and i should mention a few of the movers mentioned north korea. one group that moved were aerospace and defense stocks. those got a big jump. arrow jet that was up 3%. i won't leave out the financials. those gained on news as we focused on the new fed head jerome powell. moves up 3, 4%, for jpmorgan, and wells fargo to name a few. a lot of optimism. we got through another leg of the tax overhaul. we'll see when the vote comes going forward, but at least we got through one more step of that back to you.

melissa: nicole, thank you so much. david: let's bring in today's panel, gary kaltbaum from kaltbaum capital management, james freeman, "wall street journal," those both fox news contributors. when you look at market, way it turned around, even in light of bad news coming out of north korea, you must think that they have bets on this tax bill passing, right? >> headline the market does not care about no stinkin' north korea. that is what it came down to. a few things happened today. as you stated, the financials led the way today because the next fed head talked about more easy money, less regulation, bye-bye to the volcker rule, plus getting rid of this, change in this the cfpb, whatever the heck that thing is, is huge for the financial industry and it just shows that administration will get pro-business, business-friendly. pretty much opposite for eight years. that is what we saw with the

liftoff today. david: james it, shows if you want successful economy, there are times when the market does not parallel the economy but these days seem to do so more than the previous seven years, if you want a strong economy, you vote for tax cuts, that has got to bring people, that has to have some people -- influence on some people like not flake, right? >> we saw the interview with senator daines. he wants to vote yes. david: he was very optimistic, right? >> sounds like he was in a room with 50 plus gop senators who want to vote yes. the white house, i think was very confident before this budget committee vote. ron johnson and gary corker who raised objections said yes, they want this to happen. while they're still arguing about details this, was a big signal to markets and everyone else the tax cut is going to happen. david: gary, the good thing about the negotiation right now is that they're negotiating on behalf of small business.

i like that. i like the fact that they don't think enough has been done in this tax bill for small business? no small business is the engine -- >> small business is the engine of the economy. when you get behind them, set conditions for them to succeed, only good things happen and that's part of this whole thing and look, it is not just the fact that we're getting tax cuts. it looks like it is going to happen. it is completely ink changing the trajectory what we see for so long. it is putting more money and power into business and come yourers hands and away from regulators and washington's hands. david: we love that. >> only good comes from that. nothing bad, as long as players act correctly. of course in '08 some of them didn't act so correctly and you saw what happened. david: we have laws. just a matter of enforcing the laws we have, not creating new once. >> bingo. david: gary, thank you very much. james sticking around with us. melissa: north korea firing

another ballistic missile, the first launch since being named a state sponsor of terror. retired lieutenant-general, pardon me, thomas mcinerney on the growing threat from the the growing threat from the rogue regime. t. rowe price. invest with confidence.

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david: breaking news. secretary of state rex tillerson out with a statement after north korea fired a ballistic missile off its coast. quote, the u.s. strongly condemns north korea's launch what is likely an intercontinental ballistic missile into the sea of japan, indiscrimminantly threatening its neighbors, the region and global stability. the missile flew nearly 2800 miles up in the air. that is 10 times higher for perspective than the nasa space station. that puts all of the mainland u.s. in jeopardy according to officials. here is retired u.s. lieutenant-general thomas mcinerney, former u.s. air force chief of staff. that is game-changer. in this case i think it is

appropoe. how do we respond? >> i think the president and secretary of defense, just before you came on, that they responded quite professionally. not overly concerned, although they are. they're working the problem. i believe they're working it very closely with the chinese. we're going to see, they're not going to get out of hand. i think that leads into unfortunately mrs. clinton's comments in beijing. david: we'll get to that, general. i don't want you to get into the head of kim jong-un. frankly i don't think that is valuable exercise, but, what does this launch say about his desperation? because clearly he knew there were going to be consequences. >> the fact is, that missile showed that they have the capability, it was an r&d missile but they will have the capability that they can hit any target on the globe when it goes that high. so the fact is, that it means they're going toward as nuclear

capability force, that we can not accept as in america. our mutual assured destruction does not work against north korea, david. so something will have to give. and chinese i think know that this president means business. david: but on other hand, general, i'm wondering if the klein niece have the influence with this guy -- chinese? he clearly knew there would be consequences. he cares nothing at all about how many people of his die as a result of his actions. what makes you think china will have any effect on his actions? >> china can close him down of the fact between the united states and china, if we have other allies working, we can close that country down economically. we can starve them. we can cut their fuel. we can drive them into the ground. i think those are the kind of steps that need to be taken. david: while kim is threatening free world, literally, entire

free world with intercontinental ballistic missile, hillary clinton as you mentioned is in china talking about the united states and claiming it is u.s. bullying of small nations, one can only assume she was referring to north korea, that is causing the threat, not necessarily kim jong-un. what do you make of her comments? >> i think she is aiding and abetting kim jong-un who is our enemy. and that is a very dangerous thing to do, and should not be tolerated for a former secretary of state, particularly when she is outside of the country. it is different if she is in the united states. but when she is outside of the united states and particularly in china, she should not be doing that. she has a rap record, you know. approval of uranium one. despite having people telling her, fbi informant, what it was. look -- david: to be deflecting blame from anybody except the madman

now controlling north korea seems crazy to me. i think, frankly to most americans. general, i'm sorry, with breaking news we run out of time. lieutenant-general thomas mcinerney. great to see you, sir. thank you very much. appreciate it. >> thanks, david. melissa: more problems at the va. veterans across the country may have received unsafe care and it could been prevent. the troubling details are coming up. david: can the president use his deal-making skills to get tax reform done? we'll ask republican senator shelley moore capito coming after the break. >> we do have a few members that have concerns and we're trying to address them and we know we'll not be able to go forward until we get 50 people satisfied. night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely.

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>> it was a very good meeting with the president today. i would characterize it as constructive. there was a lot of questions and answers, a lot of back and forth dialogue with the president. i think the momentum is building here. david: that was montana senator steve daines. he is currently a maybe vote on the tax bill. but he was telling just moments ago, he is very optimistic tax reform will be done after his meeting with president trump this afternoon. let's bring in another senator who was at the meeting with the president, senator shelley moore capito joins us from west virginia. you are kind of known as a

centrist republican. you have to be sensitive to the concernssenator collins and? >> i think we'll get along the fish inlike and gaps and questions are closing. people are listening to one another. i feel very positive about the direction we're going. i'm all-in on this tax reform. we have a chance to do something big and bold for this country and i'm ready to do it. i think the rest of the senate is ready to join. david: if susan collins says to you i'm okay with everything but the obamacare repeal of individual mandate, if she says that is the deal breaker, i will vote that if you take that out of the tax bill, would you vote for that? >> if it would come out we would lose people on the other side. we're looking at ways to make sure they are taking that, the mandate out. i'm all for that. what are we saying? we're basically saying, if you don't buy insurance we won't tax you? if you can't afford insurance,

we won't tax you? that burden is a tax on middle class earners as we know. david: you're preaching to the converted but i'm wondering if it's a make-or-break deal breaker? we had by the way senator kennedy, senator john kennedy from louisiana on yesterday. he said if that is a deal breaker, i would be willing to take it out? you're not willing to go that far? >> i want the deal, i want us to seal the deal. if it has to come out to seal the deal, okay. but i don't believe that is going to happen. i think what maybe might be a better track is to have a assurances that we'll work on stablizing the exchanges and that we'll make it fair for hard-working folks to be able to afford insurance. i think that is what senator collins, although i will letter speak for herself. that is where she is most concerned. david: bob corker has this idea of a trigger. if we lose revenue, as a result of tax cuts, and again, long-term, i think we usually gain revenue because of the extra economic activity, but if we lose revenue, he wants to put

in a trigger to raise taxes again. why not, instead of that, put in a trigger to lower the spending? i mean that is another way to get the budget in balance. >> that is another way but the, the other thing i'm concerned about a trigger, is that will it chill investment on the front end? david: that is a good point. >> foals don't know what kind of tax relief they will or for how long? the whole point of this is to spur the economy, high every wages, more jobs. more opportunity for people. david: right. >> and so, while i understand the concerns about the debt and deficit, i'm fully on board realizing the growth we see from this, the modest estimates we see will pull that $1.5 trillion into the plus column. i really believe that. david: finally, senators daines and ron johnson want more for small business in this country for pass-throughs. he wants it equal to what big corporations are getting. do you think that is fair? >> small business drives this

country. i think it's a concern that has been raised. it is also a moving target. it is being worked on right now to try to close that gap, to make sure it does help the small business owners. i think we're going to be able to solve that problem. and when we move to the florida, and into the conference. >> senator daines as you just heard was pretty optimistic. i guess there's some horse-trading going on. is that 20% rate for the corporate tax remain or will it come up a little to give more to small businesses? >> i think the 20% rate is pretty solid. i haven't heard any discussion moving that up. there are other moving parts to this and i think we can move some numbers around to make sure that the pass-through entities are treated well, which i think they are. david: okay. >> i think if there is still a question we can solve that problem. david: senator capito, thanks for joining us. good luck. >> thanks. david: melissa. melissa: also happening today, president trump's nominee for federal reserve chairman, jerome powell, taking the stand during

his confirmation hearing today, telling lawmakers he believes the economy is quite strong and favors cutting regulations to help small banks. powell also saying that the case is building for a december rate hike. i bet that had a lot to do with the market move today as well. david: don't want to forget that. who will head the cfpb. we're awaiting a key ruling in a courtney moment. will we see another win for the president and for his pick, mick mulvaney? not if elizabeth warren has anything to do with it but she doesn't right now. james freeman is back with us. ♪ t know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing.

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david: breaking news. at&t is filing a response to the justice department lawsuit aimed at stopping its merger with time warner. the company says the proposed merger is, a quote, pro-competitive, pro-consumer response to an intensely competitive and rapidly-changing video marketplace. adding the government must prove that the deal less ins

competition and it can't do that. melissa? melissa: warren versus mulvaney, leading the charge against mick mulvaney's appointment to head the consumer financial protection bureau as we await possible judgment on the appointment at this hour. warren is holding a protest outside of the bureau's offices earlier. she is not backing down. >> for six years this agency fought to give consumers chance. for six years, this agency has fought for working people. and now it is time for us to fight for the agency. are you ready to fight? [cheering] david: gee. melissa: back to react is james freeman, assistant editor at "wall street journal" editorial page and a fox news contributor. so there are, this story is so much more fascinating and dicey and everything else than you would expect about something

called the cfpb. start with the fact you see senator warren out there doing that. the president knew she was doing it. he makes this controversial remark yesterday, calling her pocahontas as our audience knows. it reminds people, among other things, she lied about her heritage. remind you if you're a reporter, great, what was that story again? what was the truth behind it. she said she was native-american. i knew other people at harvard lied about that in order to get in. it's a dirty thing to do. that is one of the interesting things going on here. >> it reminds you how she was not able to back up that claim. that is not the pride of harvard law school, fair to say, out hire making a ridiculous legal claim. there is no precedent behind it. the general counsel hired by the obama appointee, mr. cordray, bureau agrees that, look, we had an election in 2016.

and pretty clear, from the constitution the president gets to decide who runs executive agencies. melissa: to be clear, she could back that up very easily. we did ancestry dna test at my house. my child spit in a little tube. she could back it up if she wanted to. let's be clear. >> yes. melissa: back to the agency itself, this is an agency who as mick mulvaney illustrated for us yesterday is an utter failure. the wells fargo thing happened on their watch. melissa: right. >> took "the l.a. times" to expose it when here there is agency was created to finding this very thing, and they were created and empowered wildly and they missed this huge situation. >> yeah. i mean, people kind of focused on the dysfunction and the constitutional problems with this agency. the president of course has the executive authority under the constitution. so what is this independent thing sitting out here but, really the just the nuts and

bolts failures are striking. you mentioned the wells fargo case they missed. they showed up at the end to extract a large settlement like regulators sometimes do. they just had this preposterous series of cases shaking down auto lenders, based on, they were looking at last names and zip codes and then guessing the race of the borrower? then based on, whether they guessed someone was white or black or asian or what have you, then they would make a discrimination claim. if they thought they hadn't gotten right deal. really appalling stuff ended up getting pushback from both sides of the aisle there. is not a track record here to say on other hand we have been doing great work. melissa: there is no oversight. >> yeah. melissa: as pointed out yesterday if you are aggrieved by this agency, literally no one you can go to, as you said shaken down by these folks. >> right. melissa: there is no one to push back against. it is outrageous. so it's a story we continue to cover. what is your bet what happens

here? it could be the president's air traffic controllers moment? it could be reagan. could be that moment that sets the tone? >> mulvaney obviously wants to set a different tone. i think it would be shocking if the president did not win in court here. of course then there is larger fight about the structure of the agency and whether it is constitutional. never mind this claim over the last week. so i think it is probably a series of legal victories here for the president. melissa: interesting, james freeman. thank you. >> thanks, melissa. melissa: david? david: new allegations against a congressman who is already under fire. the latest accusations against democratic rep john conyers. he is longest-serving member of the house but he may not be much longer. that's next. ♪ we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that we're the webber family and we are usaa members for life.

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melissa: breaking news. the u.n. security council will hold an emergency meeting tomorrow afternoon on north korea after the rogue regime launched an intercontinental ballistic missile today. the meeting is at 4:30 p.m. eastern time. we are going to be covering news coming out of that right here for you. david: meanwhile new allegations against the longest serving congressman in the house. former deputy chief of staff of john conyers accusing the lawmaker of sexual harrassment. fox news's hillary vaughn is here with all the details. hi, hillary. reporter: david, this former staffer is the second to come forward accusing congressman conyers of sexual misconduct. deanna marr was second-in-command joint democrat district office for nearly a decade. she says on a trip with her former boss, conyers didn't book her a hotel room. instead wanted to share her hotel suite but afterward to have sex. she said she refused. harrassment didn't end there.

claiming conyers forcibly touched her twice while she was on staff. the con year's's attorney says the accusations are not believable. she has a paper trail. writing ethics committee about conyers' behavior after hearing a fellow staffer was also harassed by conyers. she points the finger at the former speaker of house nancy pelosi, going easy on the fellow democrat. conyers receiveed nothing more than a rap on his knuckles from nancy pelosi speaker of the house with no clarity with his instructions. pelosi is changing her tune after she met with conyers other accusers that she does believe accusations against her fellow democrats. right now the congressional black caucus is meeting off capitol hill. the big agenda item, what to do about conyers. they're in awkward position because conyers one of the

founding members of the cbc. one of the options includes kicking conyers out of cbc or try to convince the longest serving member of congress to quit his job. melissa: wow. david: she doesn't believe. she does believe. now she believes. we'll see what happens. hillary, thank you very much. appreciate it. melissa: failing our veterans. stunning new report outlining how often our nation's heroes are put at risk with dangerous doctors. that's next. ♪ :

>> breaking news -- a judge ruling on the leadership showdown at the consumer financial protection bureau. >> the court decision leaves white house budget director mick mulvaney in place as acting cfpb director during court appeal. timothy kelly was an appointee of president trump. there is another complaint by english, however, to block the former republican congressman

mick mulvaney who you see here, from taking any action at well. there's another part of the complaint we have yet to see. so far one for trump, zero for ms. english. >> it's not over, but the show is! here is "risk & reward," see you tomorrow. liz: breaking news -- the federal judge timothy j. kelly made a decision on the big power struggle over who will be the interim director of the consumer financial protection bureau. let's take you to gerri willis in the newsroom with more, gerri? reporter: that's right, liz, you've got it exactly right here, a judge in u.s. district federal court judge timothy kelly is saying that, in fact, the president's pick will actually run the cfpb, the consumer financial protection bureau. that is a consumer advocacy agency that is highly controversial. this had been a foregone conclusion this i