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Mueller Said to Have Subpoenaed Deutsche Bank: DealBook Briefing

• Republicans are working on passing a two-week stopgap measure to avoid a government shutdown. (NYT)

• The Supreme Court allowed the third version of the Trump administration’s travel ban to take effect while legal challenges against the ban continued. (NYT)

• Repealing the individual insurance mandate is more unpopular among the public than initial opinion polling had suggested. (Axios)

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Putting the Aetna C.E.O.’s potentially big payday into context.

Mark Bertolini is set to receive as much as $500 million if his deal to sell the insurer to CVS is completed, the WSJ reported today. That’s a big number. But let’s point out a couple of things:

• Most of that value — some $230 million at the agreed-upon deal price of $207 a share — is tied to stock or appreciation rights that he had received during his tenure and that has already vested.

• Another $190 million would come from stock that he already owns.

• Then $60 million to $85 million would come from a change-in-control provision that was last amended in 2010, years before Mr. Bertolini had begun considering whether to sell Aetna.

• A significant portion of the acquisition price is in CVS stock, which has gone down more than 5 percent since the transaction was announced.

Half a billion dollars is a huge amount of money, by any standard. And it’s fair for critics to question the practice of giving C.E.O.s huge stock payouts as part of their compensation. But it doesn’t appears as though Aetna had changed Mr. Bertolini’s compensation meaningfully before the CVS deal.

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The AOL co-founder Steve Case, front, and the author J.D. Vance, right. They quietly recruited some of the country’s wealthiest people to invest in their Rise of the Rest fund.

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Maddie McGarvey for The New York Times

Steve Case signs big partners for his new fund.

The former AOL chief executive, who is working with the author J.D. Vance, has gotten some major business stars for Rise of the Rest, an investment vehicle for pouring money into start-ups in the industrial “flyover” heart of the United States. (Read: not in Silicon Valley).

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Among the backers, who have also pledged to work with businesses that receive money from the fund, according to Andrew’s latest DealBook column:

• From the tech world: Jeff Bezos of Amazon, Eric Schmidt of Alphabet and the venture capitalist John Doerr

• From the financial industry: Henry Kravis of K.K.R., David Rubenstein of the Carlyle Group and Ray Dalio of Bridgewater Associates

• From the rest of the business world: Howard Schultz of Starbucks, the fashion mogul Tory Burch, and the sports team owners Ted Leonsis and Dan Gilbert

Andrew writes, “All told, it may be the greatest concentration of American wealth and power in one investment fund.”

The tech flyaround

• Facebook has introduced a messenger app for children age 13 and younger. (NYT)

• The tech giant wants to spend “a few billion dollars” on sports rights worldwide. (Sports Business Journal via Recode)

• Google couldn’t establish a beachhead in China. Can it do so in India? (NYT)

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Broadcom takes new risks in going hostile on Qualcomm.

In seeking to replace Qualcomm’s board, Broadcom is taking a chance. The company chose to pull one of the two levers available to try to force Qualcomm to the negotiating table. (The other, of course, would have been to raise its bid above $70 a share.)

Thomson Reuters reminded Michael of the odds of proxy fights and hostile bids succeeding in some fashion:

• Roughly 40 percent of hostile takeovers over the past 25 years ended in a deal.

• Only about 26 percent of proxy fights that went to a shareholder vote over the last five years led to victory for the challenger.

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• If one includes settlements between the company and activists, challengers have succeeded roughly 57 percent of the time in the past five years.

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Can CVS get its Aetna deal done, and make it work?

It isn’t just a question of antitrust (though we’ll get to that). CVS shareholders appeared displeased at how expensive and cash-rich the takeover bid turned out to be. Lex calculates that the net debt of the combined company would be a hefty 4.6 times earnings before interest, taxes, depreciation and amortization.

Now on antitrust: Analysts and industry experts still aren’t sure how the government will assess the transaction and its effect on competition. Critics worry about any further limiting of options for consumers, from which pharmacy they can use, to which doctor they can see, according to the NYT.

If the deal closes: CVS would then have to worry about how to make the new company work. From Anna Wilde Mathews and Sharon Terlep of the WSJ:

No major health care company has tried to build a vertical system around the combination of drugstores, insurance and pharmacy-benefit management, the main businesses of CVS and Aetna, experts said.

A fee bonanza: CVS and Aetna relied on a dozen banks and law firms to assemble the transaction. The banks could split $120 million to $140 million in advisory fees alone, according to estimates from Thomson Reuters.

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Prime Minister Theresa May of Britain and the European Commission president, Jean-Claude Juncker, in Brussels on Monday.

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Julien Warnand/European Pressphoto Agency

An Irish roadblock in the Brexit talks.

Just when Prime Minister Theresa May thought that she had made substantial progress in negotiations with European Union counterparts, her governing coalition partner, the Democratic Unionist Party of Northern Ireland, withdrew its support from an agreement on how to handle the border with Ireland.

A tight deadline: Britain and the E.U. are meant to reach “sufficient progress” on key topics by the end of next week, including resolving Britain’s divorce bill from the political bloc, the rights of European citizens living in Britain, and the Irish border.

What’s next: A possible breakthrough with the D.U.P. Or the collapse of Ms. May’s governing coalition, potentially leading to Britain’s third general election in three years.

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More fallout from the accusations against Shervin Pishevar.

After the venture capitalist faced accusations of sexual misconduct and assault, two Democratic senators, Cory Booker of New Jersey and Kamala Harris of California, gave to charity money that they had received from the investor, a major donor to Democratic politicians, Bloomberg reported.

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But will the claims cause Mr. Pishevar any blowback in his professional life?

• Bloomberg said that some board members of Virgin Hyperloop One, the high-speed train start-up he co-founded, have pressed him to resign. A spokeswoman for the company denied that part of the report.

• Uber, of which Mr. Pishevar was an early backer, said, “We fully support those who have felt harassed speaking out, whenever and however they choose.”

More sexual misconduct news

• Netflix said that “House of Cards” will resume production of its final season with Robin Wright as its remaining star, after Kevin Spacey was fired. (NYT)

• The Metropolitan Opera’s firing of the famed conductor James Levine has left the institution reeling, and calling to reassure donors that it will take appropriate action as it works to shore up its finances. (NYT, WSJ)

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Joshua Roberts/Reuters

Mick Mulvaney begins remaking the C.F.P.B.

The acting director — though not according to the bureau’s deputy director, who is also claiming that title — has frozen the financial consumer regulator’s collection of data from credit cards and mortgages. Mr. Mulvaney said the decision was made for cybersecurity reasons, but the move halted a practice long criticized by the lending industry.

He also resumed payouts to victims of financial crimes, after having temporarily halted those disbursements.

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The digital currency flyaround

• The Winklevoss twins have really struck it rich with their early investment in Bitcoin. (Telegraph)

• Ethereum may have preached the values of its network to supply chains and securities sales, but it’s mainly used for buying cartoon kittens known as CryptoKitties. (Bloomberg)

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• The Securities and Exchange Commission announced its cyber unit’s first enforcement action against an initial coin offering. (WSJ)

• Ben Eisen of the WSJ describes the lessons he learned in selling the Bitcoin he was given as a wedding gift — and missing out on the recent Bitcoin boom. (WSJ)

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John Dowd is leading President Trump’s legal team.

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Brendan McDermid/Reuters

Ouch.

When he was the U.S. attorney general for the Southern District of New York, Preet Bharara tangled with the defense lawyer John Dowd once before, in the trial of the hedge fund manager Raj Rajaratnam over charges of insider trading.

Now that Mr. Dowd is back in the news in his role as personal defense lawyer for Mr. Trump — a role in which Mr. Dowd contended that the president could not be found guilty of obstruction of justice — Mr. Bharara weighed in on his former legal opponent.

From yesterday’s episode of Mr. Bharara’s podcast, “Stay Tuned With Preet”:

“I had experience with John Dowd when he represented an individual named Raj Rajaratnam, who was convicted on all counts. And during the course of that trial and after that trial, John Dowd said a lot of — how shall I put it? — ludicrous, silly things. So that’s par for the course for him.”

The Speed Read

• New York State’s attorney general, Eric Schneiderman, wrote an open letter to F.C.C. chairman Ajit Pai asking for a delay to the repeal of net neutrality rules, citing concern over the discovery of fake comments posted to the regulator’s website. (Medium)

• Discovery Communications is taking majority control of OWN, the cable network it co-owns with Oprah Winfrey. (WSJ)

• The British cinema chain Cineworld has agreed to buy Regal in a $3.6 billion deal that will create the world’s second-largest cinema group, operating in 10 countries including the United States. (BBC)

• Merrill Lynch will remain in a recruiting pact known as the Protocol for Broker Recruiting, which may help it to retain staff and recruit as Wall Street brokerages face challenges from independent rivals. (WSJ)

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• Germany’s financial regulator, BaFin, is investigating whether HNA Group accurately reported its holdings when building a stake in Deutsche Bank, according to two people with knowledge of the matter. (Bloomberg)

• Marcato Capital, led by the Bill Ackman protégé Mick McGuire, said it would seek fewer seats on the board of Deckers Outdoor, the maker of Uggs, after the advisory firms ISS and Glass Lewis failed to endorse its candidates. (NYPost)

• Children from lower-income homes, children of color and girls aren’t being encouraged to innovate, and that is harming the economy in the United States, according to the Equality of Opportunity project. (The Atlantic)

• A group of global hedge fund managers have said it is willing to pursue the Spanish government for a “zillion years” until they get as much as 4.5 billion euros, or $5.3 billion, over bankrupt toll roads. (FT)

• The Hartford agreed to sell Talcott Resolution, an annuities business, to an investor group led by Cornell Capital for about $2 billion. (The Hartford)

• The Italian tax police searched Gucci’s campus in Milan and its offices in Florence as part of an investigation into potential tax evasion. (NYT)

• For the first time in 40 years, power plants no longer are the biggest source of greenhouse gas pollution in the United States: It’s now the transportation sector because the electric grid has been cleaning up its act. (Bloomberg)

Each weekday, DealBook reporters in New York and London offer commentary and analysis on the day’s most important business news. Want this in your own email inbox? Here’s the sign-up.

You can find live updates of DealBook coverage throughout the day at nytimes.com/dealbook.

Follow Andrew Ross Sorkin @andrewrsorkin, Michael J. de la Merced @m_delamerced and Amie Tsang @amietsang on Twitter.

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We’d love your feedback as we experiment with the writing, format and design of this briefing. Please email thoughts and suggestions to bizday@nytimes.com.

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Essential California: Wildfire breaks out in Ventura County

Must be nice: There’s a $43-million public high school on the campus of software company Oracle. New York Times

CRIME AND COURTS

See you in court: For more than a year, Uber Technologies Inc. concealed a massive hack that exposed the personal data of millions of drivers and riders, violating a California law that requires companies to promptly report such breaches, according to a lawsuit filed Monday by Los Angeles City Atty. Mike Feuer. Los Angeles Times

She turned in her son: Before dawn, a woman with her 18-year-old son in her car flagged down a sergeant at Riverside’s Magnolia Avenue police station with a startling request. She said she wanted to turn in her son, who had earlier called her to say he had molested two boys, 8 and 4, in a motel room. Los Angeles Times

An appeal and outrage: “Brock Turner, the former Stanford student whose three-month jail stint for sexually assaulting an unconscious woman drew national condemnation, has filed an appeal that has reinflamed anger among activists and advocates of women who have endured sexual violence.” San Francisco Chronicle

CALIFORNIA CULTURE

Sans Spacey: “House of Cards” will resume production in 2018 without Kevin Spacey, said Ted Sarandos, the chief content officer of Netflix. The sixth and final season of the popular series will feature a lead role for Robin Wright, who plays the wife of Spacey’s character. Production on the sixth season of “House of Cards” came to a halt Oct. 31 after sexual misconduct allegations against Spacey, who starred in the series for five seasons as politician Frank Underwood and also served as an executive producer. Spacey was officially suspended from the show early last month. Los Angeles Times

Drama: The father of UCLA freshman shooting guard LiAngelo Ball said Monday that he intended to withdraw his son from school over concerns related to the indefinite suspension he was issued last month for his acknowledged role in a shoplifting incident. Los Angeles Times

Plus: “In what many employees at Staples Center view as the ‘LaVar Ball rule,’ this season the Los Angeles Lakers are enforcing “an existing policy” that no longer allows members of the media to congregate in a section of the arena among family and associates of players after games.” ESPN

History lesson here: The Hollywood screen legend Hedy Lamarr also had a career as a wartime inventor. The New Yorker

CALIFORNIA ALMANAC

Los Angeles area: Sunny, 74, Tuesday. Sunny, 77, Wednesday. San Diego: Partly cloudy, 72, Tuesday. Sunny, 75, Wednesday. San Francisco area: Sunny, 62, Tuesday. Sunny, 61, Wednesday. Sacramento: Sunny, 61, Tuesday. Sunny, 59, Wednesday. More weather is here.

AND FINALLY

Today’s California memory comes from Nina Mintzer:

“We moved to California two days after our wedding in 1966. While playing miniature golf in Hollywood, we were approached by a scout who asked us if we wanted to be on ‘The Newlywed Game.’ We won first prize and had a console TV delivered weeks later. We explained to the deliverymen that we had won it as they looked around our empty apartment. My grandmother’s comment was that she knew when I moved to Hollywood that I would be on TV and become famous. I am not; but we have lived our life here, and we know that Brooklyn is a good place to be from, but California is home.”

If you have a memory or story about the Golden State, share it with us. Send us an email to let us know what you love or fondly remember about our state. (Please keep your story to 100 words.)

Please let us know what we can do to make this newsletter more useful to you. Send comments, complaints and ideas to Benjamin Oreskes and Shelby Grad. Also follow them on Twitter @boreskes and @shelbygrad.

Conyers Will Leave Congress in Wake of Harassment Claims

The decision sets up a battle within the Conyers family for his Detroit-area House seat. Ian Conyers, a Michigan state senator and the grandson of Mr. Conyers’s brother, said he also plans to run for the seat held by his 88-year-old great-uncle.

“His doctor advised him that the rigor of another campaign would be too much for him just in terms of his health,” Ian Conyers said.

The congressman, who took his Michigan seat in the House in 1965, has already stepped aside as the top Democrat on the Judiciary Committee amid swirling allegations of sexual improprieties. He has been facing intense pressure to resign.

Speaker Paul D. Ryan and Representative Nancy Pelosi, the Democratic leader, have each said Mr. Conyers should resign after a woman who settled a sexual harassment claim against him said on television that the congressman had “violated” her body, repeatedly propositioned her for sex and asked her to touch his genitals. Other former staff members have since come forward to say he harassed them or behaved inappropriately.

The younger Mr. Conyers said that despite the accusations, he believes Michigan voters will reward his family’s work in politics by electing him.

The congressman “still enjoys healthy support in our district,” Mr. Conyers said.

He added, “People are ready to support our dean and to support our family as we continue to fight, as we have for leading up to a century, for people from Southeast Michigan.”

He said he believed his great-uncle should have due process but stopped short of defending him.

“I stand with my uncle in terms of his belief of no specific wrongdoing,” Mr. Conyers said. “However, those things need to have their day in court.”

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The state senator, who has been in office for about a year, said he had planned to run for re-election next year for his current statehouse seat but would give up that race to run for his great-uncle’s seat in Washington.

“I’m absolutely going to file for his seat. The work of our congressional district, where I come out of, has to continue,” he said. “We have got to have someone who has depth and experience but also historical understanding of what it takes to fight this type of evil in Washington.”

The elder Mr. Conyers plans to call into “The Mildred Gaddis Show,” a local radio program, to make the announcement, the younger Mr. Conyers said. His decision comes as several other lawmakers face allegations of inappropriate behavior.

Representative Joe Barton, a Republican and the Texas delegation’s most senior House member, announced this week in an interview with The Dallas Morning News that he would not seek re-election after sexually suggestive online messages that he sent to a constituent came to light.

Representative Blake Farenthold, Republican of Texas, is also facing pressure after it was revealed last week that he used $84,000 in taxpayer funds to settle a sexual harassment claim with his former communications director, Lauren Greene. She accused him of regularly making comments to gauge her interest in a sexual relationship, including saying he was having “sexual fantasies” about her.

And last week, an Ohio Army veteran became the fifth woman to accuse Senator Al Franken, Democrat of Minnesota, of inappropriate touching. Senior House Democrats have also begun calling for Mr. Franken to resign.

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Trump fully endorses Roy Moore

Washington (CNN)President Donald Trump fully endorsed Alabama GOP Senate candidate Roy Moore on Twitter Monday morning.

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    MUST WATCH

President Trump Expected to Shrink Bears Ears by as Much as 90 Percent

Americans on both sides of the aisle have anxiously awaited the decision. On Saturday thousands of people gathered in cowboy hats and ski jackets on the steps of Utah’s capitol to protest the president’s expected reduction. “Defend the sacred,” read one sign. “Keep your tiny hands off our public lands,” read another.

Further south, at the edge of the monument, another group gathered to applaud Mr. Trump’s decision, standing beneath a banner: “Thank you for listening to local voices.”

Who stands to benefit?

Mr. Trump’s decision to reduce Bears Ears would be viewed as a victory for Republican lawmakers, fossil fuel companies and rural Westerners who argue that monument designations are federal land grabs that limit revenue and stifle local control. And it would be considered a defeat for many environmentalists and recreation groups and for the five Indian nations who have fought for generations to protect the Bears Ears region.

The Navajo Nation has vowed to challenge the decision in court, along with other tribes and conservation and outdoor industry groups.

“We will stand and fight all the way,” said Russell Begaye, president of the Navajo Nation, adding that the United States government had already taken “millions of acres of my people’s land.”

“We have suffered enough,” he said.

In a statement before the announcement, Senator Hatch, an opponent of Bears Ears, said he believed President Trump’s decision was a “win for everyone.”

The federal government controls about two-thirds of the land in Utah, and the state’s leading politicians have long pushed for more local control of public lands.

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Mr. Trump is scheduled to make his announcement at the state capitol, accompanied by Gov. Gary Herbert and others. “This is really nothing more than a realignment, a reconfiguration of the boundaries,” Mr. Herbert said.

What are national monuments?

The president is also expected to announce that he will cut another national monument in Utah, Grand Staircase-Escalante, to about half its current size. And he could make changes to 25 other monuments under review, including Gold Butte in Nevada and Cascade-Siskiyou in Oregon and California.

National monuments are lands that are protected from some kinds of development by law. They are roughly analogous to national parks, but while national parks are created by Congress, national monuments are created by presidents through the Antiquities Act, a 1906 law that has been used by both Republicans and Democrats over the years to protect millions of acres of federal land.

Each monument has its own specific restrictions. At Bears Ears, for example, federal rules forbid new mining and drilling, but allow the interior department to continue to issue cattle grazing leases.

Supporters of the Antiquities Act say the law is part of the bedrock of American conservation. But some Republican lawmakers, particularly those in Utah, argue that recent presidents have abused the act, using it to put aside far more land than its language permits. The law says that presidents should limit designations to the “the smallest area compatible” with the care of the natural features that the monument is meant to protect.

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Why is the legal fight so important?

Mr. Trump would not be the first president to shrink a monument. Woodrow Wilson reduced Mount Olympus by half. Franklin Roosevelt cut the Grand Canyon monument at the behest of ranchers. (Both are now national parks.)

But the courts have never ruled on whether a president actually has the power to make these changes. The coming legal battle will probably have far-reaching implications.

If Mr. Trump’s legal challengers win in court, the decision could affirm future presidents’ rights to use the Antiquities Act to extend protection to large areas of public land. And it could cement the boundaries of Bears Ears laid out by President Barack Obama.

But if they lose, Mr. Trump and future presidents could drastically shrink any of the dozens of monuments created by their predecessors, opening the formerly protected terrain for all kinds of development.

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One-hundred and twenty-one scholars recently signed a letter arguing that only Congress can legally shrink a monument. Todd Gaziano of the Pacific Legal Foundation and John Yoo of the University of California, Berkeley’s law school, hold an opposing view, and argue that the power to create a monument “implicitly also includes the power of reversal.”

Why did President Obama set aside the land in the first place?

President Obama created Bears Ears National Monument in December 2016, after years of lobbying by five tribes in the region: the Navajo, the Hopi, the Ute Mountain Ute, the Ute Indian Tribe of the Uintah and Ouray Reservation, and the Zuni. It is named for a pair of towering buttes — the Bears Ears — that dominate much of the landscape.

Mr. Obama set the boundaries to include 1.3 million acres. Monument supporters say it contains 100,000 sites of archaeological importance, including grave sites, ceremonial grounds and ancient cliff dwellings. In the 1800s, Navajo people used the area’s remote canyons to avoid capture by the Army, and several tribal leaders were born in the shadows of the Bears Ears.

The monument’s foundation document, written by the White House staff during the Obama administration, describes its sharp pinnacles, broad mesas, solitary hoodoos and verdant hanging gardens in poetic terms.

From earth to sky, the region is unsurpassed in wonders,” the document says. “As one of the most intact and least roaded areas in the contiguous United States, Bears Ears has that rare and arresting quality of deafening silence.”

Why is the Trump administration considering changes?

For its supporters, the Bears Ears monument designation came to symbolize an indigenous victory after centuries of frustration.

For its opponents, it was an abuse of power by Mr. Obama, an infringement on the right of local people to decide what happens in their backyard.

“Our country places a high premium on consent,” said Phil Lyman, a county commissioner who lives at the edge of the monument. The designation, he said, “felt very nonconsensual.”

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In September, a version of Mr. Zinke’s report recommended changing the boundaries of six of the 27 monuments under review.

But he also recommended the creation of three new monuments. One was at Camp Nelson, Ky., a post where black soldiers trained during the Civil War. Another was the Mississippi home of the civil rights hero Medgar Evers.

The third was in an area called the Badger-Two Medicine, in Mr. Zinke’s home state of Montana.

Follow Julie Turkewitz on Twitter @julieturkewitz.


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The Daily 202: Botched damage control efforts keep making the Russia scandal worse for Trump

With Breanne Deppisch and Joanie Greve

THE BIG IDEA: President Trump’s aides spent the weekend applying tourniquets to stop the bleeding from more self-inflicted wounds. Continuing a pattern, the White House took a bad story and made it worse. With his legal exposure increased, the president then sought to change the subject.

On Saturday, Trump tweeted this about his former national security adviser: “I had to fire General (Michael) Flynn because he lied to the Vice President and the FBI.

Legal experts said this could be used as evidence that the president was trying to obstruct justice when he allegedly asked James Comey to take it easy on Flynn and then, when he didn’t, fired him as FBI director.

On Sunday, Trump’s personal lawyer claimed responsibility for writing the tweet — which he called sloppy. John Dowd clarified that the president knew in late January that Flynn had probably given FBI agents the same inaccurate account he provided to Vice President Pence about a call with Russian Ambassador Sergey Kislyak.

“Dowd said the information was passed to Trump by White House counsel Donald McGahn, who had been warned about Flynn’s statement to the vice president by a senior Justice Department official,” Carol D. Leonnig, John Wagner and Ellen Nakashima reported last night. “A person close to the White House involved in the case termed the Saturday tweet ‘a screw-up of historic proportions’ that has ‘caused enormous consternation in the White House.’

— Washington is now consumed by speculation about what shoe drops next. Here are seven questions that will determine what course special counsel Robert Mueller’s investigation takes from here:

1. What did Flynn give up in exchange for leniency?

Flynn was part of Trump’s inner circle and even considered as a potential running mate. Mueller reportedly agreed to spare the disgraced ex-general’s son and does not plan to pursue several potential charges that carried much stronger potential penalties than making a false statement to the FBI.

If there was nothing inappropriate about reaching out to the Russians, as the president and his lawyers say, why didn’t Flynn tell the truth when FBI agents asked about it? What exactly was Flynn instructed to tell the Russians?

Trump insists he’s not worried about anything Flynn might say. “No, I’m not,” he said as he left the White House Saturday for fundraisers. “And what has been shown is (there was) no collusion.”

In fact, this has not been shown. 

2. Has anyone else lied to the FBI?

“At least two dozen people who traveled in Trump’s orbit in 2016 and 2017 — on the campaign trail, in his transition operation and then in the White House — have been questioned in the past 10 weeks,” per Robert Costa, Carol D. Leonnig and Josh Dawsey. “The most high profile is (Jared) Kushner, who met with Mueller’s team in November, as well as former chief of staff Reince Priebus and former press secretary Sean Spicer. Former foreign policy adviser J.D. Gordon has also been interviewed. White House communications director Hope Hicks was scheduled to sit down with Mueller’s team a few days before Thanksgiving. Mueller’s team has also indicated plans to interview senior associate White House counsel James Burnham and policy adviser Stephen Miller.”

  • “McGahn, who was interviewed by Mueller’s prosecutors for a full day Thursday, was scheduled to return Friday to complete his interview. However, the special counsel postponed the session as a courtesy to allow McGahn to help the White House manage the response to Flynn’s plea …”
  • White House lawyer Ty Cobb declined to say which White House aides remain to be interviewed.
  • “In the past several weeks, Mueller’s operation has reached out to new witnesses in Trump’s circle, telling them they may be asked to come in for an interview.”

Many of these interviews lasted several hours. If he can show that anyone made false statements, Mueller can now circle back and has leverage over them. 

The president’s son-in-law Jared Kushner has been identified by sources as the “very senior member” of the transition team who allegedly directed Michael Flynn to contact the Russian ambassador. (Carolyn Kaster/AP)

3. What did Kushner tell Mueller’s team about Flynn and the Russia contacts?

Trump’s son-in-law has been identified by sources as the “very senior member” of the transition team who Flynn says directed him in December to reach out to Kislyak and lobby him about a U.N. resolution on Israeli settlements. Flynn admits that he was not truthful when asked by the FBI on Jan. 24 about those interactions, but we don’t know what Kushner told investigators last month. Kushner’s lawyer has declined to comment.

Bob, Carol and Josh interviewed several witnesses who have been interviewed by Mueller’s team, and some of them said they were surprised by the volume of questions about Kushner. “I remember specifically being asked about Jared a number of times,” said one witness. “Another witness said agents and prosecutors repeatedly asked him about Trump’s decision-making during the May weekend he decided to fire (Comey). Prosecutors inquired whether Kushner had pushed the president to jettison Comey, according to two people familiar with the interview.” Conservative blogger Jen Rubin, who practiced law for two decades, raises several additional questions about Kushner: “What was the Trump team going to get in exchange for lifting sanctions against Russia? If Kushner directed Flynn to contact Russian officials, was he then looking to cover that up when he urged the president to fire (Comey)? … If Flynn’s contacts were authorized and legal, why did Trump allow him to lie to the vice president about them? … Did Kushner derive any financial benefit from contacts with Russians? Why did he meet with a Russian bank during the transition? … Did Kushner intentionally omit Russia contacts on his disclosure forms? … What connection, if any, exists between Russian officials and the Trump campaign data operation conducted by Cambridge Analytica and overseen by Kushner? … Will Trump attempt to pardon Kushner if he is indicted?”

Newsweek reports that, among other significant omissions, Kushner did not disclose in paperwork for the Office of Government Ethics that he led the Charles and Seryl Kushner Foundation from 2006 to 2015, during a time when the group funded an Israeli settlement then considered illegal under international law. “The failure to disclose his role in the foundation — at a time when he was being tasked with serving as the president’s Middle East peace envoy — follows a pattern of egregious omissions that would bar any other official from continuing to serve in the West Wing,” Chris Riotta reports

4. How many other people on the Trump team knew about and/or approved of Flynn’s interactions with the Russians?

Flynn admitted in his plea deal that he spoke with another member of the transition team before he talked to Kislyak on Dec. 29 about why the Kremlin should not retaliate against the United States for sanctions that had just been announced by the Obama administration. People familiar with the matter say that this person was K.T. McFarland, who was pushed out as deputy national security adviser after Flynn’s departure and is now awaiting confirmation as Trump’s nominee for ambassador to Singapore.

That day, McFarland reportedly emailed Tom Bossert, who was another transition official and is now the president’s homeland security adviser, to say that the sanctions were aimed at discrediting Trump’s victory. According to the New York Times, McFarland passed along word that Flynn would be speaking with Kislyak hours after the sanctions were announced: “If there is a tit-for-tat escalation Trump will have difficulty improving relations with Russia, which has just thrown U.S.A. election to him,” she wrote.

Bossert then forwarded her email to six other people — including Priebus, Spicer and chief strategist Stephen K. Bannon — and urged them to “defend election legitimacy now,” according to the Times, which said McFarland couldn’t be reached. 

Former FBI director James Comey is sworn in during a Senate Intelligence Committee hearing in June. (Alex Brandon/AP)

5. What did Trump himself know and when did he know it?

The day after he pushed Flynn to resign, Trump met with Comey. The former FBI director has testified under oath (and presented contemporaneous notes to back up his account) that Trump said, “I hope you can let this go.”

The president tweeted Sunday morning, “I never asked Comey to stop investigating Flynn.”

6. Who else and what else is Mueller looking at that we don’t know about yet?

Another lower-level Trump campaign aide, foreign policy adviser George Papadopoulos, previously pleaded guilty to lying to the FBI. Agents arrested him in July. He pleaded guilty at a secret hearing in October. Mueller kept the information private until he indicted former Trump campaign chairman Paul Manafort and his associate, Rick Gates, on Oct. 30.

“Precisely what Papadopoulos did in recent months to aid the government remains unclear and the subject of speculation among Trump aides and former campaign officials,” Politico’s Josh Gerstein reports. “Prosecutors seemed pleased with the cooperation because they dropped the obstruction charge … Spokespeople for Mueller’s office and the FBI declined to comment for this article, but in court papers they cited a need to keep the charges against Papadopoulos secret because of planned interviews with other Trump campaign officials and others relevant to the investigation.”

7. How far will Trump and congressional Republicans go to thwart the ongoing Russia investigations?

Trying to go on the offensive, Trump spent Sunday attacking the integrity of the FBI. He noted that Peter Strzok — the former top FBI official assigned to Mueller’s probe — was taken off that job this summer after his bosses discovered that he and another member of Mueller’s team had exchanged politically charged texts disparaging Trump and supporting Hillary Clinton.

“Strzok, as deputy head of counterintelligence at the FBI, was a key player in the investigation into Clinton’s use of a private email server to do government work as secretary of state,” Karoun Demirjian and Devlin Barrett reported Saturday. “During the Clinton investigation, Strzok was involved in a romantic relationship with FBI lawyer Lisa Page, who worked for Deputy Director Andrew McCabe.”

In a tweetstorm, Trump said the FBI’s “reputation is in tatters.” He retweeted a conservative pundit saying that Chris Wray, who Trump appointed to replace Comey, needs to “clean house”: 

It was reported last week that Trump has pushed key GOP leaders on Capitol Hill to “move on” from their investigations into Russian interference in the 2016 election. Some Republican lawmakers are responding to damaging revelations about Trump by ramping up their calls for new inquiries … into Clinton.

Many people who are close to Trump have been warning him that Mueller means nothing but trouble, and that he’s making a mistake by being as cooperative as his lawyers want him to be. “I don’t know what they’re smoking,” Newsmax CEO Chris Ruddy, a friend of the president’s, said on ABC’s “This Week.” “Robert Mueller poses an existential threat to the Trump presidency.” Now the question is what will Trump do about it.

Meanwhile, FBI agents and alumni are defending the bureau: 

The president of the FBI Agents Association issued this statement after Trump trashed the bureau’s professionals:

Comey posted this quote from earlier in the year:

WHILE YOU WERE SLEEPING:

US Air Force F-22 Raptor stealth jets are seen at a South Korean air base in Gwangju. (AFP/Getty Images)

— The United States and South Korean air forces began military exercises that include simulated strikes on North Korea. Anna Fifield reports: “North Korea denounced the exercises as dangerous ‘when insane President Trump is running wild,’ while analysts warned that they sharply increase the chances of miscalculation and accidental conflict. More than 230 warplanes — including six U.S. Air Force F-22 Raptors and another six F-35A stealth fighters deployed to the peninsula especially for the exercises — are taking part. … They will practice for a range of wartime scenarios, including enemy infiltration drills and precision strikes on mock North Korean nuclear and missile targets, [a] statement added.”

GET SMART FAST:​​

  1. CVS agreed to purchase Aetna for $69 billion, a blockbuster deal that could transform the health-care industry – as well as the pharmacy chain of more than 9,600 stores. (Carolyn Y. Johnson)
  2. The acquittal in the Kate Steinle case has reinvigorated calls for hard line immigration policies, including Trump’s border wall. The hashtag #KatesWall was trending as social media users, including white nationalist Richard Spencer, demanded a wall dedicated to her memory. (Kristine Phillips)
  3. Sixteen top retired military commanders urged Congress to pass gun-control legislation. Their letter to lawmakers comes as the House plans to vote on a bill allowing concealed firearms to be carried across state lines, a top priority for the NRA. (Katie Zezima)
  4. The Defense Department is boosting spending on artificial intelligence, big data and cloud computing, saying these innovations are transforming warfare in the same way as the rifle, telegraph and railroads did in their day. (Christian Davenport)
  5. A new study concluded over 13,000 archaeological and historical sites along the Atlantic and Golf coasts are under threat by rising sea levels. The Jamestown settlement and the Kennedy Space Center are among the endangered sites. (Charles Q. Choi)
  6. A woman with a transplanted uterus has successfully given birth for the first time in the United States, delivering a promising sign for thousands of infertile women. It’s another step forward in the world of transplant surgeries. (Cleve R. Wootson Jr.)
  7. Alabama snagged the final spot in the 2017 College Football Playoffs, sneaking into the four-team lineup with Clemson, Oklahoma and Georgia despite its failure to reach the SEC championship. A 13-member committee made the decision, making Alabama the only team to have reached the playoffs in every season the system has existed. (Chuck Culpepper)
  8. A Canadian model who attempted to dye her eyeball purple several months ago says she’s now at risk of losing it. As her vision continues to decline, she’s taken to social media to warn against the trend known as “sclera staining” — a bizarre, but increasingly popular, procedure that involves injecting ink into the whites of someone’s eye. (Amy B Wang)

Donald Trump eats dinner with Mitt Romney and Reince Priebus at Jean-Georges restaurant in New York on Nov. 29, 2016. (Evan Vucci/AP)

WEST WING INTRIGUE:

— Trump is going all out to persuade Sen. Orrin Hatch (R-Utah) to run for reelection because he is nervous Mitt Romney might get his seat. Politico’s Alex Isenstadt reports: “Romney has been preparing to run for Hatch’s seat on the long-held assumption that the 83-year-old would retire. Yet Hatch … is now refusing to rule out another campaign — a circumstance Romney’s infuriated inner circle blames squarely on the president. Their suspicions are warranted: Trump has sounded off to friends about how he doesn’t like the idea of a Senator Romney. The president’s mostly behind-the-scenes campaign to sway Hatch will burst into public view on Monday, when he arrives in Salt Lake City to hold a well-choreographed event designed to showcase his affection for the powerful Senate Finance Committee chairman.

— Steve Bannon is also reportedly considering a Hatch endorsement. The Washington Examiner’s David M. Drucker reports: “[S]hort on insurgent Republicans willing to challenge Hatch, Bannon is eying the seven-term senator as a better option than Romney. … ‘If Steve had a choice between Orrin Hatch and Mitt Romney, he would pick Hatch 10 times out of 10,’ [a] source close to Bannon told the Washington Examiner.”

— Even as John Kelly has sought to impose order on the White House, Trump has found workarounds to circumvent Kelly’s authority. The Wall Street Journal’s Michael C. Bender reports: “The president on occasion has called White House aides to the private residence in the evening, where he makes assignments and asks them not to tell Mr. Kelly about the plans, according to several people familiar with the matter. At least once, aides have declined to carry out the requested task so as not to run afoul of Mr. Kelly[.] … The president, who values counsel from an informal group of confidants outside the White House, also sometimes bypasses the normal scheduling for phone calls that give other White House staff, including Mr. Kelly, some control and influence over who the president talks to and when. Instead, some of his friends have taken to calling Melania Trump and asking her to pass messages to her husband[.]”

TAXING PROBLEMS:

— Trump undermined Senate Republicans just hours after they passed his top legislative priority early Saturday morning in the tax package, saying he’d be open to raising the corporate rate even though GOPers held the line against such pressure. From David J. Lynch and Damien Paletta: On his way to New York for three fundraisers, Trump told reporters that the corporate tax rate in the GOP plan might end up rising to 22 percent from 20 percent. Lawmakers in both the House and Senate had fought hard to keep the corporate rate low, with the Senate late Friday rejecting a Republican-backed proposal to push it up to 21 percent in exchange for more working-family tax breaks.”

— OMB Director Mick Mulvaney said Trump could be open to a “small” change in the corporate rate. “You know he’s wanted a 15 percent rate from the very beginning. That move to a 20 percent rate is part of the discussion. My understanding is that the Senate has a 20 percent rate now. The House has a 20 percent rate now. We’re happy with both of those numbers,” Mulvaney said, adding, “If something small happens in conference that gets us across the finish line, we’ll look at it on a case-by-case basis. But I don’t think you’ll see any significant change in our position on the corporate taxes.” (CBS News)

— Floating that idea could complicate negotiations between Senate and House Republicans, who now have to reconcile the versions of the package passed by both chambers. From Erica Werner, Damian and Mike DeBonis report: “Party leaders insist that there are no showstopping differences between their two bills, each of which features a decrease in the corporate tax rate from 35 percent to 20 percent. Still, the bills feature differences worth hundreds of billions of dollars.” 

The key differences include:

  • “[T]he Senate changed its bill to preserve a provision of the current tax code that sets an alternative minimum tax floor for very wealthy individuals. That provision would be eliminated in the House bill, and scrapping the alternative minimum tax has long been a priority for GOP tax writers.”
  • “The two bills take markedly different approaches to the taxation of pass-through business income, with the House bill providing a much larger tax cut.”
  • “The Senate bills begins lowering the corporate tax rate in 2019, and the House bill begins lowering it in 2018.”
  • “The House bill has only four [individual tax] brackets, and the top rate remains unchanged at 39.6 percent; the Senate bill keeps seven brackets but lowers the top rate to 38.5.”
  • “The House bill creates a five-year ‘family flexibility credit’ that aims to help families lower their taxes. The Senate bill doesn’t have such a measure.”
  • “The House bill entirely eliminates the estate tax … beginning in 2024, while the Senate bill scales it back dramatically without getting rid of it entirely.”

— The political ramifications could be costly: In pro-Trump areas, many voters are skeptical of the tax bill, viewing the cuts largely as a giveaway to the nation’s wealthiest. Jenna Johnson files from the Detroit suburb of Sterling Heights, which voted heavily for Trump: “On a busy weeknight at the 5 Star Lanes bowling alley … there was little excitement about the Republican plan to cut taxes. A 60-year-old retiree bowling with a group of girlfriends said she’s tired of the middle class having to pay more so the wealthy can become even wealthier. A few lanes away, a middle-aged woman with frizzy gray hair said that the more she hears about the plan, the more she hates it. And a group of young guys in matching shirts said they didn’t even know the proposal was in the works, although they seemed skeptical that their taxes would ever go down in a meaningful way.”

Lee Johnson, a 63-year-old retiree, expressed skepticism about the GOP’s closed-door crafting of the plan — and their inability to answer a simple question, “Is this going to help the middle class?” “I don’t even get upset anymore, because they’re not going to listen,” said Johnson. “They don’t care. There’s nothing else to say. They just don’t care.”

— Mitch McConnell predicted the bill will become a “winning issue” once voters feel its effects. “We think this will produce results, results we will certainly be able to talk to the American people about in the fall of 2018 and 2020 as well,” he said Sunday. (Karen Tumulty

— The majority leader promoted the Senate bill in an op-ed for today’s Wall Street Journal: “Lowering taxes for families and small businesses is a central part of President Trump’s agenda, and we worked together toward this accomplishment for the American people. After a substantive and lengthy debate through an open process, we passed legislation that fulfills goals shared by congressional Republicans and the president.”

— But Democrats see an opportunity to hammer Republicans on a plan they think is a “scam” to benefit the GOP’s wealth donors, hastily passed with little procedural oversight. David Weigel, Robert Costa and Paul Kane report: “The test for Republicans is whether they can convince voters that this legislation will put more money in their wallets — and the GOP leader is not sure whether they can do that in time for the 2018 elections. ‘We don’t know,’ McConnell said,” acknowledging the measure wasn’t currently popular with voters. “But he said he thinks that in the long run, the economic boost will come and voters will eventually reward Republicans.”

Democrats say we’ve been down this road before: Veterans of President Barack Obama’s administration, with memories of how Republicans attacked the passage of the Affordable Care Act, argued that Republicans [were] overly optimistic and had misread the national mood. Republicans were ‘deluding themselves,’ said former Obama strategist David Axelrod, to think that voters would reward them for a tax cut.”

— Watch for this quote from Sen. Chuck Grassley (R-Iowa) to get a lot of attention today: “I think not having the estate tax recognizes the people that are investing, as opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.” (Des Moines Register)

Eric Henry, owner of TS Designs, stands in the facility he uses to print T-shirts in Burlington, N.C. (Madeline Gray for The Washington Post)

— Zooming out: Republicans have been looking to North Carolina — a state that slashed state corporate and individual rates four years ago by employing many of the same elements embraced in the Senate GOP plan. But it’s not really a success story. Todd C. Frankel reports: “The tax changes in North Carolina haven’t produced the fiscal calamity that led Republican legislators in Kansas this year to reverse dramatic cuts they passed a few years earlier, but nor have they produced the kind of win-for-all economic prosperity national Republicans say their effort will spur. But even if the top-line numbers have improved, workers have not seen huge benefits. The median hourly wage in North Carolina grew roughly on par with the national rate, while the average hourly wage and annual wage grew notably slower, according the federal Bureau of Labor Statistics.”

— Find out how the tax overhaul could affect your own bottom line by using The Post’s handy calculator here

President Trump, Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan meet to discuss spending bills as two empty chairs mark the absence of Democratic leadership. (Kevin Dietsch/European Pressphoto Agency/EFE/REX/Shutterstock)

SHUTDOWN WATCH:

— Republicans’ victory on taxes could be short-lived if lawmakers don’t pass a spending bill to avert a government shutdown this week. Paul Kane writes: “All that talk of knowing how to govern because Republicans did something they like to do — cut taxes — could get swept aside by a partial shutdown of the government during the holiday season, fueled by an issue that has bedeviled their party for more than a decade: immigration. . . . McConnell vowed there would not be a government shutdown but appeared to be daring Democrats into a showdown over an issue that does not face a deadline until March — when Trump has ordered the end of the Obama-era Deferred Action for Childhood Arrivals program, which gave temporary legal status to the ‘dreamers.’”

— Even moderate House Republicans are leaning on Speaker Paul Ryan (R-Wis.) to address the DACA issue. Politico’s John Bresnahan reports: “Ryan and his leadership team have vowed for weeks to keep DACA and year-end spending negotiations separate — at least publicly. Ryan, however, now is getting squeezed by both ends of his conference, with a group of more than two dozen moderate Republicans from swing districts siding with Democrats and pushing Ryan to fix DACA by 2018.”

— Congress is expected to pass a two-week stopgap bill as they sort out issues for a longer-term package. The New York Times’s Thomas Kaplan reports: “The stopgap spending measure would provide more time for negotiations between the two parties over raising strict spending caps that were imposed in 2011 as they try to work toward a long-term spending deal for the 2018 fiscal year . . . In a deal to raise the limits, defense hawks want a sizable increase in military spending. But Democrats are pushing to ensure that nondefense spending is increased by the same amount as military spending. Once congressional leaders reach a deal on raising the caps, a long-term spending package can be negotiated. Lawmakers could pass another stopgap spending measure later in December to keep the government open until that long-term package is ready to be voted on.”

THE TRUMP TAKEOVER:

Michael Kranish obtained an advance copy of Corey Lewandowski and David Bossie’s new book, “Let Trump Be Trump,” officially out tomorrow “Sooner or later, everybody who works for Donald Trump will see a side of him that makes you wonder why you took a job with him in the first place,” the authors write. Among the standout themes from the book:

  • Trump’s disloyalty to staff — and the constant rivalries among them: “Lewandowski wrote of a time when he was so ill that he fell asleep on a plane, only to be awakened by Trump, saying, ‘Corey, if you can’t take it, we’ll get somebody else.’ In another episode, Lewandowski describes how staffer Sam Nunberg was purposely left behind at a McDonald’s because Nunberg’s special-order burger was taking too long. ‘Leave him,’ Trump said. ‘Let’s go.’ And they did.” When Lewandowski was ultimately fired as campaign manager, he says, Trump left the task to his eldest son, Donald Trump Jr.
  • Trump’s temper and propensity for “face-ripping” screaming fits: Hope Hicks was tasked with steaming Trump’s suits while he was wearing them (“get the machine!” Trump would yell) and any oversight — no matter how minor — could leave aides on the receiving end of a screaming, profanity-laced tirade. After Trump learned Paul Manafort suggested the president shouldn’t appear on Sunday news shows, for example, Trump ordered his helicopter pilot to lower the altitude to make an immediate cellphone call. “Did you say I shouldn’t be on TV on Sunday? I’ll go on TV anytime I g–damn f—ing want …” Trump yelled. “Tone it down? I wanna turn it up! … You’re a political pro? Let me tell you something. I’m a pro at life. I’ve been around a time or two. I know guys like you, with your hair and skin …”
  • Trump’s eating habits (aka his fast-food obsession): Lewandowski and other top aides went to “elaborate” efforts to carefully time their delivery of hot fast food to Trump’s plane before departing campaign rallies. The four main food groups were “McDonalds, KFC, pizza and Diet Coke.” And in-flight fare consisted largely of Oreos, potato chips, and pretzels — since Trump, a known germaphobe, refused to eat from a previously-opened package.

Donald Trump in 2005 with actress Arianne Zucker and Billy Bush. (Obtained by The Washington Post)

MEN BEHAVING BADLY:

— Former NBC host Billy Bush confirmed the validity of Trump’s “Access Hollywood” comments in a New York Times op-ed, following reports the president privately disputes that he made the lewd 2005 remarks. “Of course he said it,” Bush wrote. “And we laughed along, without a single doubt that this was hypothetical hot air from America’s highest-rated bloviator. Along with Donald Trump and me, there were seven other guys present on the bus at the time, and every single one of us assumed we were listening to a crass standup act. … We now know better[.]”

— The Metropolitan Opera in New York said it will begin investigating allegations that famed music conductor James Levine sexually abused a teenager more than three decades ago. In a statement Saturday, Met officials acknowledged they had known about the allegations for at least a year, but that they were denied by Levine and said they heard nothing further from police. The Times reports that the Met decided to begin the probe after receiving media inquiries regarding Levine’s behavior. (Anne Midgette)

— The spotlight on sexual misconduct allegations has reinforced activism on the subject at American colleges and universities. The New York Times’s Caitlin Dickerson and Stephanie Saul report: “Colleges large and small have fielded reports against students and professors. Some schools said they had begun strengthening anti-harassment policies. Lawyers who represent victims say they have been flooded with calls.” The historically black colleges of Spelman and Morehouse are dealing with student complaints that the school doesn’t take assault claims seriously enough. “The issue was particularly painful for [female] Spelman students, who spoke of a shared legacy with Morehouse that gave them great pride and, they said, could be perversely discouraging victims from coming forward or assailants from being punished.”

About That Secret Button in Matt Lauer’s Office,” by The Atlantic’s David Sims: “The Times reported that the button is a ‘regular security measure installed for high-profile employees’ at NBC. Whether it’s a mundane precautionary tool or an accessory worthy of a Bond villain, it’s also a concrete manifestation of a reality reflected in so many of these recent allegations: the unabridged power and protection that accompany celebrity. Even beyond that, the button is a potent metaphor for the way that systems — those seemingly disinterested institutional structures — can insidiously work in favor of the people who already wield the most influence.”

— ICYMI: Rep. Blake Farenthold (R-Tex.) reportedly settled a 2014 sexual harassment complaint for $84,000 using taxpayer funds. Politico’s Rachael Bade reports: “Lauren Greene, the Texas Republican’s former communications director, sued her boss in December 2014 over allegations of gender discrimination, sexual harassment and creating a hostile work environment. Greene said another Farenthold aide told her the lawmaker said he had ‘sexual fantasies’ and ‘wet dreams’ about Greene. She also claimed that Farenthold ‘regularly drank to excess’ and told her in February 2014 that he was ‘estranged from his wife and had not had sex with her in years.’ When she complained about comments Farenthold and a male staffer made to her, Greene said the congressman improperly fired her. She filed a lawsuit in U.S. District Court in the District of Columbia, but the case was later dropped after both parties reached a private settlement.”

MOORE DECISIONS:

— One week out from Alabama’s Senate election, the race between Roy Moore and Doug Jones remains neck-and-neck. Washington Post-Schar School poll published Saturday gave Jones a three-point advantage, 50 to 47 percent.

  • A 53 percent majority say they see Jones as the candidate with higher standards of personal moral conduct, while about a third of likely voters say the same of Moore.
  • 1 in 4 voters say the candidates’ moral conduct is the “most important” deciding factor in their vote — and among those voters, Jones holds a 67 to 30 percent advantage.
  • Jones has the backing of 1 in 6 GOP-leaning likely voters, while just 1 in 14 Democrat-leaning voters back Moore.
  • Women are more likely to find the allegations against Moore credible and to support Jones. Moore leads by 15 points among likely male voters, while Jones leads by 18 points among likely female voters.

— But: a CBS News poll found a 71 percent majority of Republicans in Alabama believe the wave of sexual misconduct allegations against Moore are false. Among voters who believe the allegations are false, 92 percent of them believe Democrats are behind the charges, while 88 percent say newspapers and the media are to blame. And while 53 percent of Republican voters in the state say the Moore allegations are a “concern,” they say other things “matter more” in the race. (One-third of Republicans say the allegations are not a concern to them.) The poll also gave Moore a six-point advantage in the race.

— McConnell has backed off his demand that Moore exit the race. “I’m going to let the people of Alabama make the call,” McConnell said. He added, “The Ethics Committee will have to consider the matters that have been litigated in the campaign should that particular candidate win.” (ABC News)

— Trump said he needs Roy Moore in Washington in tweets this morning:

SOCIAL MEDIA SPEED READ:

A CNN correspondent commented on John Dowd claiming he wrote Trump’s controversial tweet on Flynn:

From a contributing editor at Vanity Fair:

Rep. Ted Lieu (D-Calif.) responded to Eichenwald’s tweet:

The former attorney general came to the FBI’s defense after Trump criticized the agency:

So did Sen. Claire McCaskill (D-Mo.):

From a former U.S. attorney who got fired by Trump after being told he would be kept on:

This 2016 tweet from Sarah Huckabee Sanders made after Comey reopened the Clinton email probe right before the election, made the rounds again:

Hillary Clinton encouraged her followers to keep up the fight against the tax bill:

From a fellow at the liberal Roosevelt Institute:

Trump went after ABC News’s Brian Ross for his suspension over incorrect reporting on Flynn’s plea deal:

But Sen. Chuck Grassley (R-Iowa) defended Ross:

Trump honored the legacy of Rosa Parks:

A former Clinton White House staffer addressed reports of Kushner’s undisclosed role at a foundation that funded Israeli settlements: 

And the No. 2 Senate Republican shared this view from Washington:

GOOD READS FROM ELSEWHERE:

— The New York Times, “11-Year-Old Has Spent Her Life in Jail, a Serial Killer as a Cellmate,” by Rod Nordland: “Meena got chickenpox, measles and the mumps in prison. She was born there, nursed there and weaned there. Now 11 years old, she has spent her entire life in prison and will probably spend the rest of her childhood there as well. The girl has never committed a crime, but her mother, Shirin Gul, is a convicted serial killer serving a life sentence, and under Afghan prison policy she can keep her daughter with her until she turns 18. … Her plight is extreme, but not unique. In the women’s wing of the Nangarhar provincial prison here, she is one of 36 children jailed with their mothers, among 42 women in all. But none of the other children have spent such a long time in custody; most of their mothers’ sentences are much shorter.”

— The Wall Street Journal, “Like the Cubans Before Them, Venezuelan Exiles Are Transforming Florida Politics,” by José de Córdoba and  Arian Campo-Flores: “Tens of thousands of Venezuelans, pushed by a failed economy and repression back home, are finding their way to South Florida. Their growing numbers and Venezuela’s dramatic implosion could tip the political balance in this crucial swing state, where presidential elections are decided by the thinnest of margins. … There is a sense in local political circles that the Venezuelan vote remains up for grabs. In 2008, 62% of Venezuelan-Americans voted for John McCain, the GOP nominee, but four years later, they swung sharply the other way, with 76% voting for Barack Obama, according to exit polls by [a Democratic polling] firm.”

— BuzzFeed News, “How Trolls Locked My Twitter Account For 10 Days, And Welp,” by Katie Notopoulos: “A few days before, I got a flood of replies to an old tweet from 2011 that said ‘kill all white people’. I’m sure in 2011 I thought this was a funny joke (look carefully, and you will notice the Ironic Capitalization), though it’s not so funny now when there are Literal Nazis running amok. The ironic thing about Literal Nazis is that they have weaponized taking things literally. And that’s what they did here.”

— The New York Times, “The Lure of a Better Life, Amid Cold and Darkness,” by Andrew Higgins: “Norilsk, once a slave labor camp, is prospering as a source of palladium. Not bad, except for the two months of darkness and temperatures of minus 80.”

HOT ON THE LEFT:

“Obama should be arrested for implying Trump needs a filter, Fox Business host suggests,” from Cleve R. Wootson Jr.: “Before he left office, Barack Obama said his goal was to steer clear of the political spotlight, [giving] the new president room to govern … But a Fox Business commentator said Obama violated that unwritten rule with a recent comment about Trump’s tweets. What’s more, according to Fox Business host Lou Dobbs, that violation should merit arrest. “I think U.S. marshals should follow [Obama], and anytime he wants to go follow the president like he is and behave [like that],’ Dobbs said on his show Friday. ‘I mean, this is just bad manners. It’s boorish and it’s absurd and he doesn’t realize how foolish he looks.’ ‘I mean, he should be brought back by the marshals. Isn’t there some law that says presidents shouldn’t be attacking sitting presidents?’”

 

HOT ON THE RIGHT

“MSNBC’s Joy Reid apologizes for ‘insensitive’ LGBT blog posts,” from NBC News: “MSNBC host Joy Reid issued an apology on Sunday for a series of blog posts nearly a decade ago, mostly critical of former Gov. Charlie Crist of Florida, that have been criticized as homophobic and ‘anti-gay.’ ‘This note is my apology to all who are disappointed by the content of blogs I wrote a decade ago, for which my choice of words and tone have legitimately been criticized,’ Reid said in a statement in a statement shared with NBC News, which, like MSNBC, is owned by NBCUniversal. … The blog posts were unearthed on Thursday by Twitter user @Jamie_Maz. … The Twitter user noted Reid repeatedly referred to Crist as ‘Miss Charlie’ in her posts and speculated that his 2008 marriage to a woman was a fraud and part of a ‘veep marketing strategy.’”

 

DAYBOOK:

Trump will travel to Salt Lake City today to meet with leaders of the Mormon Church and give a speech at the state capitol. 

 

NEWS YOU CAN USE IF YOU LIVE IN D.C.:

— It will be mostly sunny in D.C. with mild temperatures today. The Capital Weather Gang forecasts: “High pressure is in control so we can expect plenty of sunshine and pleasantly cool afternoon temperatures. After most of us start the day in the 30s, highs climb into the mid-50s this afternoon with hardly a breeze.”

— Democrat Joshua Cole, who lost his House of Delegates race by only 82 votes amid revelations that some voters were wrongfully assigned to his district, has decided to seek a state-funded recount. (Michael E. Ruane)

— Virginia’s Election Day last month set a record for rainfall, potentially affecting voter turnout. (Martin Weil)

— Employees at a Starbucks in downtown D.C. recounted how Inauguration Day protesters broke storefront windows as prosecutors attempt to convict the protesters on rioting charges. Keith L. Alexander reports: “[A]round 10:30, [Aurelia] Taylor said a group of demonstrators was walking by when someone threw a brick that shattered a shop window. ‘It sounded like thunder,’ Taylor testified recently in D.C. Superior Court. ‘I had to get my [employees] to safety as quickly as I could,’ she said. Then another window was shattered. And another.”

— The decline in Metro’s ridership has coincided with the rise of Uber and Lyft in the D.C. area. Faiz Siddiqui reports: “Metro has hired a consultant to build ridership models that take into account the impact of ride-hailing services Uber and Lyft as part of the transit agency’s effort to determine where its riders have gone and how to win them back.”

VIDEOS OF THE DAY:

Trump was visited on SNL by Michael Flynn, “the ghost of witness flipped”:

The women of SNL sang “Welcome to Hell” to highlight recent revelations of sexual misconduct:

Demonstrators in Salt Lake City protested the Trump administration’s decision to shrink the Bears Ears and Grand Staircase-Escalante national monuments:

The Kennedy Center honored artists such as Lionel Richie and Gloria Estefan as Trump skipped the event:

An Australian lawmaker proposed to his longtime partner while giving a speech on same-sex marriage:

HBO will air a documentary tonight on former Post editor Ben Bradlee. Watch the trailer:

Hours after Senate GOP passes tax bill, Trump says he’ll consider raising corporate rate


President Trump had not previously indicated that he might consider a higher corporate tax rate. (AP Photo/Alex Brandon)

Hours after the pre-dawn passage of a $1.5 trillion tax cut, President Trump suggested for the first time Saturday that he would consider a higher corporate rate than the one Senate Republicans had just endorsed, in remarks that could complicate sensitive negotiations to pass a final bill.

On his way to New York for three fundraisers, Trump told reporters that the corporate tax rate in the GOP plan might end up rising to 22 percent from 20 percent.

Lawmakers in both the House and Senate had fought hard to keep the corporate rate low, with the Senate late Friday rejecting a Republican-backed proposal to push it up to 21 percent in exchange for more working-family tax breaks.

The Senate passed the final version of its bill on a 51-to-49 vote just before 2 a.m. Saturday, with Sen. Bob Corker (Tenn.) as the lone Republican voting against it on concerns that it would drive up the federal deficit. Democrats howled that the bill was not released until hours before passage, with lobbyist-driven handwriting still present on the final version.

Senate Republicans moved fast, in part, because they wanted to comply with Trump’s demand to send legislation for his signature by the end of the year.

The House and Senate intend to take steps as soon as Monday to set up a conference committee to negotiate the significant differences between the Senate plan and the version passed by the House last month. But Trump’s statement Saturday threatened to introduce a complication.

“Business tax all the way down from 35 to 20,” Trump told reporters, remarking on a core provision of the Senate bill. “It could be 22 when it all comes out, but it could also be 20. We’ll see what ultimately comes out.”

Moving the corporate tax rate up by 2 percentage points could raise $200 billion, money Trump might need to try to satisfy the concerns of Republicans frustrated that the plan does not reduce top individuals’ tax rates enough or of others such as Sen. Marco Rubio (Fla.), who argued that the bill should do more for low-income families.

Rubio complained Friday that colleagues would not even allow him to move the corporate rate to 20.94 percent, saying they acted as if this would be a “catastrophe.”

If the White House tries to lower the top tax rate for individuals, it would mark a sharp departure from several months ago, when then-chief strategist Stephen K. Bannon advocated for raising the top rate paid by the wealthiest Americans as a way to follow through on the populist principles Trump invoked in his campaign.

Lowering the corporate tax rate was a centerpiece of the plan, and Republicans have said that it will help businesses free up money to invest, grow and raise wages. They continually reshaped the tax-cut bills in the House and Senate to help businesses, even if it meant cutting back on tax benefits for individuals and families.

Senate Majority Leader Mitch McConnell (R-Ky.) dismissed suggestions that the corporate rate could rise to 22 percent, pointing to votes in both the House and Senate that would set it at 20 percent. “That would be a major change,” McConnell said in a telephone interview, adding that the vote showed he does not “have much of a margin.”

House conservatives have strongly opposed a higher corporate rate, with Rep. Mark Meadows (R-N.C.), chairman of the Freedom Caucus, saying that anything above 20 percent would be unacceptable. It remained to be seen how the president’s endorsement of a higher rate might impact their stance.

“The Freedom Caucus was the first to embrace the president’s call for a 15 percent corporate rate and has been consistent in its position, calling for a rate as low as possible but no higher than 20 percent,” Meadows said in a text message. “I am certain he will be signing a tax relief package by Dec. 21, which will meet the pro-growth standard the Freedom Caucus has demanded for many months.”

Saturday’s vote was a bright victory for Trump amid the political troubles facing the White House on other fronts, as well as for Republicans after the collapse of their efforts to repeal the Affordable Care Act.

Business groups welcomed the Senate vote, which moved them a major step on the way to their long-standing goal of lower corporate taxes. The current U.S. statutory rate of 35 percent is the highest among major industrial economies, though many corporations pay a far lower rate.

“The decades-long drive toward meaningful tax reform is closer than ever to becoming a reality,” said Tom J. Donohue, president of the U.S. Chamber of Commerce. “Momentum toward final passage is building rapidly.”

Key industries, including retailers and investment managers, are expected to benefit from the Senate bill. But others warned that the bill’s detailed provisions might offset any gains working Americans would enjoy via lower taxes.

Elizabeth Mendenhall, president of the National Association of Realtors, said that new limits on the deductibility of mortgage interest could cause home prices to “fall by an average of more than 10 percent,” hitting high-cost areas even harder.

Likewise, the bill eliminates the current deduction for state and local income tax payments and permits taxpayers to write off only $10,000 of their property taxes. That will “reduce disposable income for many taxpayers, likely outweighing the positive effect of lower” tax rates upon consumer spending, Moody’s Investors Service said.

Republicans brushed aside those concerns.

“This is a big moment for American families and small businesses ready to turn the page on an Obama-era recovery that has been far too sluggish,” said Sen. John Cornyn (R-Tex.)

Senate Republicans said that the tax cut ultimately will pay for itself through faster economic growth that will produce more government revenue, a claim that most independent economists and the nonpartisan congressional Joint Committee on Taxation reject. Even taking into account the effects of possible faster growth, the bill still would add $1 trillion to the $20 trillion national debt, according to the latest committee analysis.

Many economists also said that the tax cut is ill-timed, because the economy already is running hotter than the Federal Reserve believes is possible without eventually triggering higher inflation. The economic expansion is in its ninth year, making it one of the longest in U.S. history, and the jobless rate in October fell to 4.1 percent.

Later this month, the Fed is expected to raise rates for the third time in 2017. Most economists believe that the nation’s central bank will respond to the tax cut by raising interest rates more aggressively to head off incipient inflation.

“The worry for the Fed will be whether the economy might overheat, including the creation of bubbles in the stock market and among other asset classes,” said Mark Hamrick, senior economic analyst for Bankrate.com.

In last-minute actions, Republicans allowed taxpayers to use funds from college-savings plans for tuition at religious secondary schools and opted not to eliminate the alternative minimum tax. Instead, the AMT will be retained for corporations and limited to individuals earning $70,600 in taxable income and couples making $109,400.

Lawmakers also added a provision that provides favorable treatment for the oil and gas sector.

The president is betting that an eventual tax cut will pay off for Republicans in 2018. At a New York fundraiser Saturday, he said that Democrats had made a mistake by opposing the legislation.

“We got no Democrat help and I think that’s going to cost them very big in the election because they voted against tax cuts,” Trump said. “And I don’t think politically it’s good to vote against tax cuts.”

But the president is gambling that public opinion, which is hostile to the legislation, will reverse before Election Day. In a Quinnipiac University poll this month, 61 percent of voters said that the tax cut would mainly benefit the wealthy, while 24 percent said that it would help the middle class.

Paul Kane, Erica Werner and Heather Long contributed to this report.

In pre-dawn Twitter message, Trump issues a fresh denial about intervening in Flynn investigation


President Trump talks to reporters Saturday about his fired national security adviser before leaving the White House for New York. (Shawn Thew/EPA)

President Trump issued a fresh denial Sunday that he asked former FBI director James B. Comey to halt an investigation into the conduct of his dismissed national security adviser Michael Flynn.

“I never asked Comey to stop investigating Flynn,” Trump said in a pre-dawn message on Twitter. “Just more Fake News covering another Comey lie!”

The tweet was the latest in a running commentary on the case from Trump that began Saturday, a day after Flynn pleaded guilty to lying to the FBI about his interactions with a Russian official.

Trump fired Flynn 25 days into this administration for misrepresenting the nature of his conversations with Sergey Kislyak, then the Russian ambassador, to Vice President Pence and other administration officials.

Comey has alleged that the day after that, Trump urged him to be lenient with Flynn, producing notes that said Trump told him, “I hope you can let this go.”

Trump stoked the controversy with one of his Saturday tweets in which he said part of the rationale for firing Flynn was that he had lied to the FBI.

“I had to fire General Flynn because he lied to the Vice President and the FBI,” Trump wrote in that tweet.

But critics pounced Saturday on Trump, arguing that if he knew at the time of his conversation with Comey that Flynn had lied to the FBI and was under investigation, it may constitute an attempt to obstruct that investigation.

“Are you ADMITTING you knew Flynn had lied to the FBI when you asked Comey to back off Flynn?” Walter Shaub, the former head of the U.S. Office of Government Ethics, asked in a tweet Saturday afternoon.

Trump lawyer John Dowd drafted the president’s tweet, according to two people familiar with the message. Its authorship could reduce how significantly it communicates anything about when the president knew that Flynn had lied to the FBI, but it also raises questions about the public relations strategy of the president’s chief lawyer.

Two people close to the administration described the tweet simply as sloppy and unfortunate.

Dowd declined to answer questions about how and when Trump learned of Flynn’s alleged lies to the FBI, a deception that did not become public until several days after Flynn’s dismissal.

As Flynn pleaded guilty Friday, he made clear that he is now cooperating with special counsel Robert S. Mueller III as Mueller probes Russian meddling in last year’s election and possible collusion with the Trump campaign.

Flynn’s decision to cooperate with Mueller was widely seen as a sign of increasing legal peril for other White House aides and perhaps Trump himself, as the investigation has expanded beyond potential collusion with Russia to include obstruction of justice and financial crimes.

The president continued tweeting about Flynn late Saturday. In one message, he complained that it was unfair for Flynn’s life to be “destroyed” for lying to the FBI, arguing that the agency pursued Democrat Hillary Clinton far less aggressively while investigating her use of a private email server as secretary of state.

Trump’s commentary on the case began Saturday morning, as he addressed reporters before leaving the White House for a fundraising trip to New York.

He said he was not worried about what Flynn might share now that he is cooperating with prosecutors, forcefully asserting that there was “absolutely no collusion” between his campaign and Russia.

In other tweets Sunday, Trump also addressed news that Peter Strzok, the former top FBI official assigned to Mueller’s investigation was taken off that job this summer after his bosses discovered he and another member of Mueller’s team had exchanged politically charged texts disparaging Trump and supporting Clinton. Strzok was also a key player in the investigation into Clinton’s use of a private email server.

“Tainted (no, very dishonest?)” Trump wrote in an apparent response to coverage on “Fox Friends” of Strzok’s role in the Clinton inquiry.

Trump also retweeted a pair of posts on the subject written by Paul Sperry, a media fellow at the conservative Hoover Institution. One suggested that the current FBI director, Christopher A. Wray, should “clean house” due to the politicization of the agency.

A little later, Trump promised a better FBI under his leadership.

“After years of Comey, with the phony and dishonest Clinton investigation (and more), running the FBI, its reputation is in Tatters – worst in History!” Trump wrote. “But fear not, we will bring it back to greatness.”

Carol D. Leonnig contributed to this report.

Democratic leaders call on Nevada congressman to resign

RENO — U.S. Rep. Ruben Kihuen, D-Nev., is facing calls from top Democratic leaders to resign amid allegations he sexually harassed a woman who worked on his 2016 congressional campaign.

Kihuen, 37, made repeated, unwanted sexual advances toward the then-25-year-old staffer, according to a report published Friday by BuzzFeed News.

“In light of these upsetting allegations, Congressman Kihuen should resign,” Minority Leader Nancy Pelosi said, according to the Associated Press.

The California lawmaker said she spoke to the 37-year-old congressman Friday night.

The woman, identified only as Samantha, told BuzzFeed that Kihuen twice touched her thighs without consent. She did not know what to do with her complaint, and didn’t feel comfortable bringing it to the campaign’s leadership, so she quit the campaign, according to the online news outlet.

More: Congressman’s sexual harassment settlement paid with tax dollars

More: After CNN broke her Al Franken groping story, accuser spent day hiding in bed

Buzzfeed reports the Democratic Congressional Campaign Committee was contacted by the staffer and told that Kihuen had done things that made her uncomfortable.

On Friday, the group called on Kihuen to step down.

“Members and candidates must be held to the highest standard,” DCCC chairman Ben Ray Luján wrote in a statement published by BuzzFeed. “If anyone is guilty of sexual harassment or sexual assault, they should not hold elected office. Congressman Kihuen should resign.”

In a statement, Kihuen apologized, but did not directly address calls for his resignation.

“I sincerely apologize for anything that I may have said or done that made her feel uncomfortable,” the statement said. “I take this matter seriously as it is not indicative of who I am, but I want to make it clear that I don’t recall any of the circumstances she described.

“I was raised in a strong family that taught me to treat women with the utmost dignity and respect. I have spent my fifteen years in public service fighting for women’s equality, and I will continue to do so.”

Michael J. McDonald, chairman of the Nevada Republican Party, called allegations leveled at Kihuen “appalling and disgusting.”

“He needs to resign immediately and take full responsibility for his actions,” McDonald wrote in a statement.