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  • MORNING HERE I'M SANDRA SMITH.

  • >> Bill: GOOD MORNING.

  • I'M BILL HEMMER.

  • FEDERAL APPEALS COURT RULING

  • MOMENTS AGO THE PRESIDENT DOES

  • NOT HAVE PRESIDENTIAL IMMUNITY

  • FROM GRAND JURY INVESTIGATIONS.

  • THE BATTLE NOW MAY BE HEADING

  • TO THE U.S. SUPREME COURT.

  • WE HAVE LIVE TEAM FOX COVERAGE

  • IN A MOMENT AND WE'LL GET TO

  • THE JUSTICE DEPARTMENT LIVE.

  • WE'LL BEGIN NOW AT THE WHITE

  • HOUSE WITH CHIEF WHITE HOUSE

  • CORRESPONDENT JOHN ROBERTS ON

  • THE NORTH LAWN.

  • GOOD MORNING.

  • >> GOOD MORNING.

  • A CASE THAT'S BEEN GOING ON FOR

  • SOME TIME NOW.

  • A FEDERAL DISTRICT JUDGE IN NEW

  • YORK CITY WHO RULED THAT THE

  • PRESIDENT HAD TO HAND OVER AT

  • LEAST NOT THE PRESIDENT BUT THE

  • PRESIDENT'S ACCOUNTING COMPANY

  • HAD TO HAND OVER EIGHT YEARS OF

  • TAX RETURNS TO THE MANHATTAN

  • DISTRICT ATTORNEY CYRUS VANS

  • JUNIOR.

  • THE PRESIDENT'S ATTORNEYS

  • APPEALED IT TO THE SECOND COURT

  • OF APPEALS HANDLING MANHATTAN.

  • THE SECOND CIRCUIT HAS NOW COME

  • DOWN WITH A RULING UPHOLDING

  • THE DISTRICT COURT JUDGE'S

  • DECISION THAT THE PRESIDENT'S

  • ACCOUNTING FIRM HAS TO TURN

  • OVER THOSE TAX RETURNS.

  • IN THE OPINION THE JUDGES MAKE

  • A DISTINCT BETWEEN A CRIMINAL

  • PROCEEDING AND A GRAND JURY

  • INVESTIGATION.

  • DON'T FORGET, THIS WAS A

  • SUBPOENA THAT WAS ISSUED BY A

  • GRAND JURY THAT WAS IMPANELED

  • BY THE MANHATTAN DISTRICT

  • ATTORNEY.

  • THE PANEL SAYING WE HOLD

  • HOWEVER THAT ANY PRESIDENTIAL

  • IMMUNITY FROM STATE CRIMINAL

  • PROCESS DOES NOT EXTEND TO

  • INVESTIGATIVE STEPS LIKE THE

  • GRAND JURY SUBPOENA AT ISSUE

  • HERE.

  • WE ACCORDINGLY AFFIRM THE

  • DISTRICT COURT'S DECISION ON

  • THE IMMUNITY QUESTION.

  • THAT MEANS THE PRESIDENT IS NOT

  • IMMUNE FROM THIS WHICH WE

  • CONSTRUE HAS AN ORDER AND

  • REMAND FOR FURTHER PROCEEDINGS.

  • IT DOESN'T MEAN THE WHITE HOUSE

  • AND PRESIDENT HAVE LOST THE

  • FINAL BATTLE HERE.

  • AGAIN, THIS WAS DECIDED BY A

  • THREE-JUDGE PANEL WHICH

  • INCLUDED THE CHIEF JUDGE AND

  • TWO CIRCUIT JUDGES.

  • THE PRESIDENT HAS A COUPLE OF

  • OPTIONS.

  • HIS ATTORNEYS CAN APPEAL TO THE

  • SECOND CIRCUIT FOR WHAT IS

  • CALLED A HEARING WHERE ALL THE

  • JUDGES IN THE SECOND CIRCUIT

  • WOULD REHEAR THIS CASE AND

  • DECIDE THE CASE, OR THEY COULD

  • TAKE IT TO THE SUPREME COURT.

  • WE'RE STILL AWAITING A DECISION

  • ON WHAT THEY'LL DO ABOUT A

  • SIMILAR RULING IN THE

  • WASHINGTON, D.C. CIRCUIT COURT

  • OF APPEALS, A THREE-JUDGE PANEL

  • DETERMINED THE PRESIDENT DID

  • HAVE TO HAND OVER HIS TAX

  • RETURNS.

  • WE DON'T KNOW IF THEY ARE GOING

  • WITH THAT OR THE SUPREME COURT.

  • THEY MAY BE GATHERING ALL OF

  • THIS TOGETHER AND TAKE IT RIGHT

  • TO THE SUPREME COURT.

  • I EXPECT TO HEAR FROM THE

  • PRESIDENT'S ATTORNEY JAY

  • SEKULOW IN A FEW MINUTES AFTER

  • HE GOES THROUGH THE RATHER

  • LENGTHY DECISION.

  • THE BOTTOM LINE HERE.

  • THE SECOND CIRCUIT COURT OF

  • APPEALS UPHOLDING A FEDERAL

  • DISTRICT COURT JUDGE IN

  • MANHATTAN'S OPINION THAT THE

  • PRESIDENT'S ACCOUNTING FIRM HAS

  • TO TURN OVER THOSE EIGHT YEARS

  • OF TAX RETURNS TO THE MANHATTAN

  • DISTRICT ATTORNEY FOR

  • INVESTIGATIVE PURPOSES.

  • WE SHOULD POINT OUT THIS MEANS

  • THAT THOSE TAX RETURNS COULD BE

  • USED TO DEVELOP INVESTIGATIONS.

  • THEY CAN'T MAKE THEM PUBLIC AT

  • LEAST NOT YET.

  • MAYBE IF THEY DO DEVELOP SOME

  • SORT OF INVESTIGATIVE MATERIAL

  • THAT LEADS TO A SUBPOENA OR

  • INDICTMENT THEN SOME OF THAT

  • INFORMATION MAY COME OUT.

  • WE'RE STILL A LONG WAY FROM

  • THAT.

MORNING HERE I'M SANDRA SMITH.

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