capitol hill. i don't know that was previously planned. the deputy attorney general is popular these days. an fbi press conference at 5:30. we'll have that on "the five" live. i'm dana perino. here's shep smith. >> shepard: the reaction has been pouring in after we finally got the justice department inspector general's report on the fbi and how they handled the hillary clinton e-mail investigation. now the white house set to respond. we'll explain from the actions from the key players. everybody from james comey who has already commented on the findings to loretta lynch and the texting of fbi agents. how this could affect robert mueller's russia investigation. i'll speak with reporters at the justice department, the white house, capitol hill and the special report anchor bret baier. and the president and his children facing a new lawsuit. this time over his foundation. we're tracking the accusations and the president's response.

also, the pentagon apparently set to cancel a major military exercise with south korea. keeping promises to pyongyang? let's get to it. the justice department inspector general is blasting the former fbi director james comey for how he handled the hillary clinton e-mail investigation. the report states that comey was insubordinate but adds that his actions were not politically motivated. the key findings focus on how the former fbi director james comey and the former attorney general loretta lynch looked into clinton's use of e-mails while she was secretary of state. on strzok and page, the inspector general revealed the fbi general working on the case texted an agency lawyer who he was having -- with whom he was having an affair that he would stop president trump from winning the election. he adds, there's no evidence

that the agent's political leanings impacted the investigation. we have more on that ahead. first, it was july of 2016 the former fbi director announced during a news conference that he was not recommending criminal charges against hillary clinton for using a private e-mail server while she was secretary of state. however, he said she was quoting extremely careless in how she handled classified information. the inspector general called director comey's actions during that time extraordinary. the inspector general also criticizes comey's decision days before the 2016 presidential election to send a letter to lawmakers announcing he was reopening the e-mail case. the former fbi director tweeted in the last hour "i respected the doj or i.g. or inspector general office, which is why i urged them to do this review. the conclusions are reasonable, even though i disagree with some. people of good faith can see an unme she dented situation

differently. thanks to i.g., people for hard work." this inspector general investigation is not a criminal report. the attorney general jeff sessions has warned people that they could lose their jobs over its findings. >> if anyone else shows up in this report that requires termination, we will do so. >> shepard: as i reported, we're waiting for sarah sanders to take to the podium. we believe at any minute now. we'll bring you that. meantime, catherine herridge back in her post where she's been combing through this report. catherine, update us, if you would. >> the report was 18 months in the making and soup to nuts of the clinton investigation. one of the primary focuses is the july 2016 public statement by james comey where he recommends against criminal charges. what the inspector general found is that when he made that

decision, he was in fact insubordinate. it states "we found it was extraordinary for comey to conceal his intentions from his superiors, the attorney general and deputy attorney general for the admitted purpose for telling him not to make the statement and to instruct his subordinates in the fbi to do the same." as you mentioned, director comey has responded in the last few minutes to that finding. the former and current fbi officials have said to fox news a finding of insubordination is really a big deal for a lack of better words, especially given fbi director comey and his stated commitment to leadership, shope. >> shepard: catherine, anything else? we've learned now of course that he's being criticized for holding that sort of press avail before the election and then suggestions that that might have played a part in the outcome.

were they specific about that part at all? >> well, that -- people often referred to that july 2016 event with comey as a news conference. i was at that event. with us not a news conference. it was a public statement that was read for reporters. we were not allowed to ask any questions. i would argue the reporters were like props. he made the public statement. it concluded. what we learned later is that he had not advised loretta lynch about the substance of that statement, nor had he advised the deputy attorney general who was his day-to-day point of contact within the justice department. if i can take another step here in the conversation. one of the big headlines is about these text messages between strzok and page. the inspector general concludes that the text messages were really like a road map for the investigation and they cast a cloud over the clinton e-mail case. but he says specifically and the

language matters, that they did not find documented evidence that political bias affected the decision making in the clinton e-mail case. but it's important to understand that this report is not making conclusions or drawing conclusions about whether political bias played any role in the russia investigation. now, there's one text that is getting a lot of attention right now. what we've learned or confirmed in the last few hours is that the text was only recovered in a forensic review last month. so this report would be much different if they had not recovered that text. this is the text about strzok and page and a conversation about stopping donald trump. it was sent on august 8, 2016. so for some context, that is after the clinton e-mail case closed for the first time and they're just sort of a week into the beginning of the russia

investigation. page says "trump is not ever going to become president, right? right?" strzok responded "no, no, he's not. we'll stop it".if you can stay with me here. the reason that is important for the inspector general, that was evidence to them of political bias and that strzok was going to take action. he wasn't just going to talk about it. he was actually going to do something. you fast forward to october of 2016 and the discovery of thousands of clinton e-mails on the shared laptop between her aide, huma abedin and her husband, anthony wiener. what the inspector general found is that while fbi in new york alerted head quarters in washington late september, early october about the findings, headquarters here and the clinton e-mail team were very slow to respond. this is the one part of the

report where they point to political bias. i want to read that, if you can stay with me one more second here. it's a big book. you have to let me find the page. i got it here. so the inspector general writes "under these circumstances, we did not have confidence that strzok's decision to prioritize the russia investigation over following up on the mid year related investigative lead was free of bias." you're absolutely correct on the clinton e-mail case, they did not find documented evidence of political bias. but to keep it simple, the inspector general's report is silent on whether there was political bias that in any way infected the russia investigation. >> shepard: one more question. as a follow up, do we know the

context? in other words, do we know if strzok and page at the time believed there was evidence that might indicate the man that is running for president is compromised by a foreign actor? in other words, did they know this russia thing was percolating? did they know things and say my god, look at this evidence, this guy can't be president and we're going to stop it, right or was it something that indicated action? >> let me tell you what i know from my reporting and what is in the report. remember, at the end of july in 2016, we have this kind of crossover period, the clinton e-mail investigation closes for the first time. the russia investigation is opened based on what is called an e.c. or electronic communication that was drafted by agent peter strzok. so this text message comes within the opening of the russia investigation. you can't just open a counter intelligence investigation without having a catalyst or without having evidence which

gives you the opportunity to open it. you can't open it willy-nilly is what i'm trying to say. so strzok would have been aware of the information for the foundation of the russia investigation at that time. i can't tell you what that was because those records are classified and those are the records they're still trying to get on capitol hill. he would have been aware of them and privy to them and you can look at the text in august and i think you're asking a very reasonable question, whether he was saying that because of personal animus or based on evidence that he had seen that he felt raised a lot of questions and reasonable suspicions about contacts between members of the trump campaign and russian officials. >> shepard: catherine, what else did this say about the former attorney general, loretta lynch? >> right. i actually expected this to be a much larger part of the inspector general's report.

what is there i think is pretty newsy in itself. they interviewed loretta lynch. they also interviewed bill clinton about this meeting on the arizona tarmac. really just days before hillary clinton was going to have her fbi interview about mishandling classified information. lynch and bill clinton said this was unplanned. a lot of speculation over whether it was really secretly planned. they both told the i.g. it was unplanned. lynch said as did clinton that they talked about small talk stuff like grandchildren and other things like that. they did not talk about the criminal clinton e-mail investigation. but lynch told the inspector general that as the conversation went on, she got more and more uncomfortable. you know when you're in a conversation and you want it to end but you're not sure of the way to end it or the polite way to end the conversation? that's what comes across in the inspector general's report.

she was concerned about what it was going to look like and the inspector general said that the decision to take that meeting with bill clinton, i think the world shows bad judgment and then also false to attorney general lynch on not being clear how that would impact the decision on the clinton e-mails. she said i'm going to defer to james comey and i'm going to go with what he tells us. but this and the inspector general's opinion was too muddy. didn't have the clarity it needed. she was a presidential candidate and what they were looking at is whether there would be a criminal prosecution of her or any of her associates for handling classified information. >> shepard: catherine herridge, keep working hard. thank you. >> i will. >> shepard: i appreciate the information she has on this. an easy road map. great reporting as always. the news conference from the

white house should be interesting because you've heard guests in the last hour suggesting the white house probably isn't happy about this, but we really don't know the facts on that. we'll know in a moment. the news conference was scheduled for 2:30, the press briefing. then they rescheduled it for 2:45 again eastern time. and then now it's 3:13 and there's still no press briefing. i don't know. maybe they have work to do, maybe they're working a response to this, trying to get talking points. you know what they want to do is. they want to get the report out and tell you what they think about it and move on. next i'll talk to the "special report" anchor bret baier to get his take on what we learned and what is to come. stay with us. i have type 2 diabetes.

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it's just a burst pipe, i could fix (laugh) no. with claim rateguard your rates won't go up just beacuase of a claim. i totally could've... (wife) nope! switching to allstate is worth it. >> shepard: 16 minutes passed 3:00 p.m. in washington. our feed to the press briefing just went down. here she is. sarah sanders is at the podium. let's listen in. >> leading small business american association promoting and protecting the right of americans to own, operate and grow their businesses. the president will highlight the strong american economy and tout the benefits we're seeing from tax reform and deregulation and including that small business optimism has hit its highest level in 30 years.

as you know, national economic director larry kudlow was discharged from the hospital and is recovering at home. the president has spoken with larry and he's in good spirits. we look forward to having him back here at the white house soon. tonight at national's park, republicans and democrats in congress will put aside their political differences to play america's game. after last year's horrible shooting at the gop practice, capitol police acted heroically in the line of fine to save lives. we're excited to see those that were injured return to the field including majority whip, steve scalise. those injured have fought hard for this moment and we'll proudly cheer them on. the republican team looked good in practice and are headed for a victory. lastly, on june 14th, we celebrate flag day commemorating the adoption of our flag. the founding of our brave u.s. army and we would like to wish

the president a very, very happy birthday. if i say so, i don't think he looks a day over 35. with that i'll take your question. a little sucking up never hurts. kevin? >> if you would, please, comment on the recently released i.g. report. your impressions of what you've read so far and have you had an opportunity to discuss with the opportunity the new york attorney general's idea of suing the trump foundation to have it shut down in the state of new york. >> the president was briefed on the i.g. report earlier today. it a firms the president's suspicions about comey's conduct and the bias about some members at the fbi. director wray will hold a press conference this afternoon and we encourage you to tune in for specific questions. for you other question, the president has tweeted about this. specifically earlier today. the foundation raised $18 million while giving $19 million to charity while virtually

having zero expenses. the previous new york a.g. that was forced to retire in disgrace made a stated mission to use this matter to advance his own political gain. they said battling the white house is the most important job they've done. that sounds outrageously biased and problematic and very concerning. cecilia? >> in the state of the union, the president had harsh words for north korea. he said no regime oppressed their citizens more than north korea. why is he down playing their horrific atrocities? >> the president has not down played. the president has raised north korea's human rights record and the oppressions of the regime. he raised them at the summit. that took place earlier this week. the focus of the summit was denuclearization and peace on

the peninsula and that's what took place there. >> on fox news he said a lot of other people have don some bad things. how is that not down playing -- >> that's a factual statement. a lot of people have done bad things. the president has not ignored the bad things that has been done by the regime. he called it out. as you yourself mentioned and he brought it up at the summit and the purpose of the summit was to focus on denuclearization and looking towards the brighter future. >> thank you, sarah. can you confirmed that there's a trade principles meeting today. the chinese tariffs are coming together. >> a lot of questions. one at a time. yes, there is a trade meeting today. in terms of announcements, i'll keep you posted when we have something to announce. >> there has been a report that

800 to 900 chinese products would be on the list. seems like quite a high number even though i guess a high number is 1,500. is that number higher than it is, could you tell us as well? >> well, since i'm not making any announcements, it's hard to give details of an announcement that we're not ready to make. whether or not we will, we will keep you posted. beyond that, i can't give you any details. david? >> two questions, if you don't mind. the president said earlier this week that he did speak with kim jong-un about human rights abuse. can you tell us exactly what areas of concern they talked about and whether the gulag work camps, the lack of freedom of press, women's rights? what did they talk about? >> they talked a some topics. a couple you listed. i'm not going to get into the

details. the president did say he brought up human rights with the regime. >> and rudy guliani spent 20 minutes talking with one of our reporters about his love life and proclaimed in his words he's not going to be a priest if he's separated from his third wife. is this too big of a distraction to the point that the president will get another lawyer? he said his soon-to-be called the president last week. can you tell us what they talked about? >> not today or tomorrow or any point ever going to comment on rudy guliani's love life. i will be glad to leave that to you and the reporter that spoke with him. i'm not aware of having any information on that. jim? >> can you tell us why the president saluted the north koreans while he was in singapore? >> it's a common courtesy.

>> on these children that are being separated from their families at the border. the attorney general said somehow there's a justification for this in the bible. where does it say in the bible that it's moral to take children away from their mothers? >> i'm not aware of the attorney general's comment or what he would be referencing. i can say that it's very biblical to enforce the law. it's repeated many times throughout the bible. if you'll let me finish. i'm not going to comment on the attorney's specific comments that i haven't seen -- >> he said in the bible -- >> it's hard for you to understand short sentences. please don't take my words out of context. but the separation of alien families is the same product that the democrats refuse to close.

these laws have been on the books over a decade. the president is simply enforcing them. >> is it moral policy to take children away from their parents? can you imagine the horror the children -- >> can you imagine they're pulled away? why is the government doing this? >> because it's the law. that's what the law states. the law -- >> but they don't have to do that. >> right. it doesn't have to be the law. the president has called on democrats in congress to fix the loop holes. the democrats have failed to come to the table, failed to help this president close these loop holes and fix this problem. we don't want this to be a problem. the president has tried to address it a number of occasions. we've laid out a proposal and democrats refuse to do their job and fix the problem. >> two questions. there's not a law for families to be separated at the border. this is the administration's

choice. so why did the administration find that this was necessary and if it continues to not have much of a deterrent effect will you continue the policy? >> the laws have been on the books over a decade. the president is enforcing them. we would like to fix the broken system that our immigration -- and fix our immigration problem. until democrats ready to fix the problem, it's going to continue. we would like to see it fixed. >> take responsibility for its policy change from handling the civil matter to criminal -- >> it's not a policy change to enforce the law. that's been this administration's policy since the day we got here. >> the president made a decision in april -- >> it's our administration's policy -- >> they're separating families to deter people from coming here illegally. >> our administration has had the same position since we started on day one, that we were going to enforce the law. i know it was something that wasn't high on the priority list in the previous administration but it is on ours.

we're a country of law and order and we're protecting the borders. we would like to fix the loop holes. if democrats want to get serious, they're welcome to come here and sit down with the president and do something about it. >> don't you have any empathy? come on, sarah. you're a parent. don't you have any empathy for what these people are going through? >> settle down. i'm trying to be serious but i'm not going to have you yell out of turn. >> this is the law and these people have nothing. >> i know you want to get more tv time but that's not what this is about. i'm not going to recognize you. >> answer the question. it's a serious question. they have nothing. they come to the border with nothing. you're a parent. you're a parent of young children. don't you have any empathy for what they go through. >> jill, go ahead. >> does the president believe that crimea is part of russia because everybody there speaks russian? the president said that kim

jong-un told him that north korea is straying -- >> your first question, i'm not aware of any comment like that. i know it's been reported. i'm not going to comment on a private conversation wasn't a part of that i don't have information on. second part. >> the president said kim jong-un told him that north korea was working to destroy a major message engine testing site. which site is that? >> we'll have specific details later. we're working with the department of defense. tray? >> two questions on the i.g. report. earlier this year the president suggested that the doj inspector general michael horowitz was an obama guy. how does the president view horowitz today and does he feel the investigation was thorough? >> again, the president thinks that this report re-affirms the suspicions that he had about comey and director wray will hold a press conference later today and i would encourage you to tune in for that. >> the text message exchange --

>> go ahead. >> the text message exchange highlighted in the report between lisa page and peter strzok, ultimately strzok said "i will stop it" and that's when he was referring to candidate trump becoming the president. did the president have any reaction to this information when you spoke with him after he was briefed today? >> certainly again cause as great deal of concern. i think it points out the political bias that the president has been talking about and has been repeatedly mentioned from this administration that we found to be a huge problem. >> has the president or anyone else used funds from the trump foundation to pay for personal business? >> i'm not aware of any of that taking place. >> can you say no? >> i'm not aware of it. i have to get more information. i'd refer you to the trump foundation for that point. i haven't spoken to him about it. >> let me follow up with you. the president said several months ago he doesn't think that

michael cohen is going to flip. is that the case? >> i'm sorry. >> the president tweeted several months that he doesn't think michael cohen will flip. does he still think that's the case? >> i would refer you to the president's comment. john? >> two questions. thank you. first, there have been reports on almost a daily basis and in detail about epa head scott pruitt doing things that border on the unethical and almost on a daily basis republican members of congress call for his resignation. what is his status within the administration and does the president have confidence in him to remain as administrator? >> certainly we have some areas of concern and some of these al cases but i don't have any personnel announcements. >> the second question, is congressman mark sanford blame the president's tweet as the

final straw in his defeat making him the second republican house member to go down in defeat? this is the first time in 48 years a sitting president has oppose add member of congress of his own party. does the president intend to speak out for primary challenges to other critics of him within the congress and if so, who? >> i don't have any announcements on any candidates that the president may or may not endorse and wouldn't be able to address that from this venue either. >> two questions. first on the two immigration bills that the house is considering. does the president have a preference for one or the other or are both fine with him? >> the president has laid out a proposal that closes the illegal loop holes and provides the resources to secure our border. if the process leads to a permanent solution as outlined by the president, we would support it.

we've laid out what we want to see. if this gets to a permanent solution, then we would support it. >> and another question about immigration. you blame the democrats for not closing the loop holes. republicans control both houses of congress and despite the president's repeated preference for mitch mcconnell to get rid of the legislative filibuster so they could pass something without democratic votes, they have not done that. don't republicans take some responsibility for the immigration -- >> a handful of democrats wanted to solve this problem, we could get it done. but they don't. they refuse to come to the table and continue to attack the president. >> the president asked several time for the legislative filibuster. he said it's not a barrier. >> a majority of republicans want to fix the loop holes. we've laid out a proposal to do that and we're hopeful that congress, particularly democrats in congress, will come together

and fix it. >> the president wants to fix it. we have laid out a number of different plans and proposals that would close these loop holes. we continue to be ready and willing to work with congress to get it done. >> on immigration, what does the president want to see the house of representatives do in the next week? >> we laid that out. we want to see a permanent solution to fix the loop holes and secure the border. >> and on daca? some upcoming vote, a particular bill that he favors -- >> again, he wants to see the different components laid out and addressed. if any of the legislation comes to the table that would create a permanent solution that does that, we would support it. >> on nafta, the president threatened tariffs. does that mean he's going to withdr withdraw? >> i don't have an announcement.

>> and several gop lawmakers today have called for a second special counsel. would support another counsel or does this settle the matter? >> create as great deal of concern and we'll tune in to director wray's comments this afternoon. there's a lot of things in this report that worry us in the administration and should worry americans that people played this political bias and injected it into a department that shouldn't. >> does the president feel that peter strzok should have a job? >> i haven't asked him but my guess would be no. >> there's a report that people are eyeing the exits including raj shah and yourself. what is the report there? >> i don't know if there's a

need to replacement. as i stated last night in a tweet, i think cbs got a little ahead of their skis, particularly since they put out a story about my sinking without talking to me. things that would be a little problematic in terms of personnel announcements. i don't have any to make. i can tell you that i show up here every day, i love my job. i'm glad to work for the president. each and every day i'll pray for clarity and discernment on what my future looks like. right now i think the country's looks good and i'm glad i get to be a part of that process and i'll continue to do my job. thanks, guys and have a great day. no that was -- that came from -- i'm sure some of you saw that as reports of people leaving the press office. the reports weren't true to talk about them more leaves it out there. status quo. if somebody moves, they'll take another job. right now nobody is moving. a couple of things on the inspector general's report

today, a full screen that i want to give you. a call for full screen nor the attorney general, comey insubordinate. questioning here, we found it was extraordinary and insubordinate for comey to conceal his intentions from superiors, the attorney general, the deputy attorney general for the admitted purpose of preventing them from telling him not to make the statement and instruct his insubordinates in the fbi to do the same. comey waited until the morning of his press conference to inform lynch and yates of his plans to hold one without them. he did so only after first notifying the press. bret baier is our chief political anchor and special report host who is based in washington and joins us now. brett, i want to talk about aspects of this if we could. that particular part right there is about that -- not a news conference but a media statement catherine said with staged reporters there. when he threw the election in a

new direction. >> that's right. this is what the i.g. says, is that was insubordinate. he should have told loretta lynch, the attorney general, that that would happen, what was going to happen. he explains it in his book and the interview he did with me and others that he had concerns. because after that tarmac meeting between lynch and former president clinton, that he thought that she was possibly tainted in this investigation some way. the i.g. says he should never have done that. he wasn't a prosecutor. he was the fbi director. that news conference or statement in july, july 5, was wrong in process. >> shepard: politics today. upon the release of this inspector general's report, politically what do you see as the fallout in washington? >> first of all, it's getting digested. as catherine points out, this is 568 pages. it's thick. people go through it and see what is in it. depending where you stand politically is probably the

prism by which you respond to it. democrats are already saying this is a nothing burger. it's process and procedure. republicans are pointing to these texts. the new ones that are out and that is you referenced before with catherine, "no, we will stop him" from becoming president. that text of peter strzok was just released in this before despite being asked for by congress for many, many months. trey gowdy, who was the chairman of the house oversight committee, he has been somebody that has played it straight. he got a lot of grief for siding with the fbi on the spygate explanation. he put out a statement today after this i.g. report in which he says that he was angered, alarmed and deeply disappointed by this report and he points to the strzok part and says it's man nest bias, trending towards animus, calling a shadow on this investigation and everything strzok touched, which in other

words is also the beginning of the russia investigation. we're going to have chairman gowdy on as well as chairman goodlatte tonight on "special report" and get into the details. >> shepard: so by that line of thinking, if it wasn't for strzok, we wouldn't have had the investigation on russia and all of this is ill legit? >> i don't know if he's going that far but he will raise questions about everything that strzok was in charge of by his statement here and was touching. remember that there's a large section in this report as catherine adequately and accurately pointed out dealing with the finding of the e-mails on anthony wiener's laptop and why that was delayed. and peter strzok is in charge of that. this happens after obviously this text is delivered in august. did that have something to do with it? the i.g. report says they can't come to a conclusion. it may have. >> shepard: so it's a poison

pill argument? >> exactly. where you stand depends on how you look at the report. >> shepard: we know where the president stands. so based on this report, will we likely hear from the president, continuing the theme of this whole russia investigation is a hoax and here more evidence of it? >> 100%. it will be seven words that will be in a tweet somewhere. that is "no, no, he won't, we'll stop it." i think you'll hear those seven words a lot. i think it's interesting that the fbi director chris wray is coming out this afternoon. that is a news conference you'll want to hear. that will be the action after the i.g. report if there is action within the fbi. >> shepard: do we have -- you mentioned the russia investigation. is there a sense down there for where we are in that process? just depends who you listen to i'd prefer to listen to you. do we know or not? >> it's a little up in the air. it feels like it's coming to a

head. people you talk to tangentially that dealt with the mueller people or know about subpoenas or empty subpoenas, they think things are starting to come to a head. it's a guessing game. capitol hill is in the dark when it comes to mueller and where it's going. we could be months away from a conclusion. meantime, the whole issue of whether the president will sit for an interview with mueller is on the front burner. >> shepard: if mueller subpoenas him, he sits or is there a special things for presidents? >> they may fight it. they may try to fight it. there's not a lot of history that they have success fighting it. but to listen to rudy guliani in various interviews, he suggests they'll give it a shot. >> shepard: he talked about his love life. we'll skip that. i thought she stayed away from it nicely. >> yes. >> shepard: best to the family. thanks, pal. our teams are going through this report.

there's a lot of it. tonight on "special report", look at this. trey gowdy and bob goodlatte, two big players in d.c. both live, both on "special report." so if you're not home at 6:00, we understand. dvr it and watch it. it could be very interesting live television tonight. "special report" is a must every day but especially tonight. now back to catherine herridge or the more key point. they're all reading through this, processing the documents, figuring out what bubbles up and what you might be interested in to give you the facts to make your decision. this is fox news. we'll be right back. find the re? nah. honey look, your old portable cd player. my high school rethainer. oh don't... it's early 90s sitcom star dave coulier...

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and the nx hybridhe 2018 lexus nx with a class-leading 31 mpg combined estimate. lease the 2018 nx 300 for $339 a month for 36 months. experience amazing at your lexus dealer. >> shepard: continuing coverage of the fox top story, the justice department inspector general's report on the clinton e-mail investigation. it also criticizes the former fbi deputy director andrew

mccabe. now catherine herridge has more. >> one of the issues is whether mccabe should have recused himself because his wife received money in 2015. the inspector general found it was right by the ethics office and he didn't have to recuse himself. in 2015, the clinton foundation was told to get out and recuse himself. the report found and their language did not fully comply with the recusal. mccabe's attorney is pushing back against his finding. that is key because mccabe is facing the possibility of criminal prosecution for misleading investigators over this leaked portion of the investigation, shep. >> shepard: one more thing. the report covers whether hillary clinton's e-mails were

compromised. >> okay. buried in this report is a section of a review that was done by fbi investigators. i would call them like a mop up team or a clean team. they came in in the fall of 2016 to look at the issue of whether the hillary clinton server was compromised that section -- hopefully i can find it -- insd. that's the special fbi team assessed the fbi investigation successfully determined that the classified information was transmitted. classified information was compromised by unauthorized individuals including foreign governments or intelligence services via cyber intrusions or other means and that included compromising e-mail accounts of people that worked alongside hillary clinton. what is not clear in the report but seems to indicate that this

goes beyond the compromise of sydney blumenthal's e-mail account, which is what we knew about before, shep. >> shepard: thank you, catherine. >> you're welcome. >> shepard: still reading, still processing. lots of people doing it. as we get things together that are reportable, we'll report them. meantime, john bussey is here. the associate editor at the "wall street journal." the parent company of "wall street journal" and fox news channel share corporate ownership. a little bit of something for everybody. man, the details. >> something for everybody. i think probably more for president trump. this will be described as confirming what we knew. that comey was out of bounds having that press conference was odd at the time? and hurt hillary and helped trump. >> that's right. that procedures weren't followed, judgment calls that

were made were made in error. >> shepard: why? why did he tell his supervisors? why did he do it? >> this goes into more of the gruesome details. i think this goes i don't that. this do underscore problems in the fbi and the judgment calls that were made. and are in fact gruesome. the strzok e-mails are worse than what we heard before. the i.g. was unable to determine whether or not from those e-mails political considerations might have affected his decision to prioritize the russia investigation which he was pursuing at the time, no longer but pursuing at the time over investigating the clinton e-mails on the wiener laptop. we can't be sure. so that leaves this door open of uncertainty. it's not good for the fbi and it's not good for comey. >> shepard: other important points in the document.

>> stepping back from this, it's important to remember a couple things. first off, this is not about the mueller investigation. that is a separate investigation ongoing about whether or not there was collusion between the trump campaign and russian and whether or not there was obstruction of justice by the trump campaign or the president regarding the firing of comey. this is not about that. this is about the e-mails and that investigation and how that was conveyed to the public. the other thing to remember, that investigation on the clinton e-mails hurt the clinton campaign and the reopening of the investigation very close to the election hurt the clinton campaign, this was not something that hurt the president. the manner which it was conducted does leave a lot of questions open and a lot of potential -- further criticism of the fbi. lastly, comey was fired by the president, by the president's own admission for his role in this russia investigation. >> shepard: we know that because he told us. >> he said that to lester holt

on nbc television. so i mean, if this -- to conflate this investigation and reasons that the president might have had to fire comey because of what he saw him doing in the clinton e-mail investigation, according to the president's own words, those two things are separate. so probably helpful in our own minds to keep them separate. >> shepard: people won't though. there are dots all over a page and people will connect them however they want. some people will officially believe one thing and some people will firmly believe another and we'll get the russia report and then the questions will be answered. >> i think that's probably right. the problem with the administrator of the director of the fbi, comey, he created this degree of confusion and this mess from which anybody can draw their dots for their own political purpose. >> shepard: the dots are there. you have a nice printer. >> thank you. >> shepard: wall street journal

has money down there. the trump foundation, you heard about this. the trump foundation hit with a huge lawsuit over claims that they used money meant for charity and all sorts of completely illegal ways and they want to shut it down. the details, the president's response next. whatever you do to stay healthy. you might be missing something. your eyes. that's why there's ocuvite. ocuvite helps replenish nutrients your eyes can lose as you age. it has lutein, zeaxanthin and omega-3. ocuvite. be good to your eyes. and now for the rings. (♪) i'm a four-year-old ring bearer

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>> shepard: in president trump's home state, new york, the state attorney general is suing the trump foundation accusing the family and the president of using the charity as a checkbook for its businesses, its legal bills and presidential campaign, this is part or a turn in a ten-year investigation. an investigation that covers the past ten years, i should say. a statement from the trump foundation calls it politics at its very worst, blames it on the

previous attorney general, eric schneiderman. david lee miller has more. >> the lawsuit describes numerous examples of alleged financial abuse by the trump foundation. among them, a fund raiser for veterans in january of 2016, a week before the iowa caucuses. the televised event was used to benefit the campaign. the suit says mr. trump's use of the campaign -- the foundation to benefit his campaign was willful and knowing. and the mar-a-largo resort received a $100,000 donation. the money came from trump foundation. the president wasted in time criticizing the lawsuit and going after new york's previous attorney general, eric schneider

man initiated the investigation. he resigned last month among sexual abuse. the president said the a.g. is doing everything to sue me. i won't settle this case. the spokesman for the foundation sent out a statement saying in part, the president himself or through his companies have contributed more than $8 million. worth noting here, according to the lawsuit, mr. trump has not contributed any personal money to the foundation since 2008. the attorney general is seeking from mr. trump, $2.8 million in restitution. shepard? >> shepard: david lee, thank you. a quick look at the dow. the truth is, the dow has been down most of the afternoon. in the last ten minutes, we were

exactly even on the day. it was all zeros across the board. 25,170 today. better than expected report on retail sales and the s&p on path for its fourth big win. neil cavuto after this. e, together in so many new ways. there's new cedar plank seafood bake. tender maine lobster and shrimp, cedar roasted to perfection. or new caribbean lobster and shrimp. sweet pineapple salsa on grilled rock lobster, paired with jumbo coconut shrimp. and wait. there's lobster & shrimp overboard! it's a seafood party on a plate. so hurry in. 'cause lobster & shrimp summerfest won't last.

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on home and auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. >> neil: that sport general's report is out. all this after the new york attorney general is digging in. welcome. i'm neil cavuto. this is "your world." a world of face-paced developments just as the justice department inspector general issues his scathing report claiming that james comey broke with protocol among other things. we're hearing the two fbi agents were bent on stopping this president from ever becoming president. the new york attorney general meanwhile going for broke with a lawsuit targeting this president and his family and his trump foundation. of all days. the coincidence. and the dow dro