Subject: Playbook Power Briefing, presented by BP: MANAFORT and RICK GATES indicted; PAPADOPOULOS pleads guilty -- TONY PODESTA to step down from Podesta Group -- MENENDEZ mistrial request denied
From: "Anna Palmer Jake Sherman Daniel Lippman" <[email-masked]>
To: <[email-masked]>
Date: Mon, 30 Oct 2017 11:05:08 -0600
List-Id: <1376319_7170513.xt.local>

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Today's Playbook Power Briefing presented by BP 
            
By JAKE SHERMAN ([email-masked]; @JakeSherman), ANNA PALMER ([email-masked]; @apalmerdc), DANIEL LIPPMAN ([email-masked]; @dlippman) and ZACH MONTELLARO ([email-masked]; @ZachMontellaro)

        
BREAKING... PLAYBOOK SCOOP -- TONY PODESTA TO STEP DOWN FROM PODESTA GROUP: Anna writes: "Democratic power lobbyist Tony Podesta, founder of the Podesta Group, is stepping down from the lobbying shop that bears his name after coming under investigation by special counsel Robert Mueller. Podesta announced his decision during a firm-wide meeting Monday morning and is alerting clients of his impending departure.

"Podesta is handing over full operational and financial control to longtime firm CEO Kimberley Fritts, according to multiple sources with knowledge of the meeting. Fritts and a senior group of the Podesta team will be launching a new firm in the next one or two days. Sources said the transition has been in the works for the past several months. '[Tony] was very magnanimous and said, 'This is an amazing group of people,' a source said of Podesta's remarks. Podesta also told staff he 'doesn't intend to go quietly, or learn how to play golf.' He said he 'needs to fight this as an individual, but doesn't want the firm to fight it.' 

"Fritts also addressed the gathering, telling staff that she is 'thrilled at this opportunity' and that, 'This is not about me, this is about y'all.' Several other senior staff spoke about their excitement about the future of the firm. The meeting ended with a standing ovation for Podesta. Podesta Group did not respond to a request for comment for this story." http://go.politicoemail.com/?qs=c12fa619a28a22f5f61fed575fec5025ef36502cc9d110ba5b42a1c21abb7793d374e0dcad5ea6373f9dbd15d87aeed6

Good Monday afternoon. GEORGE PAPADOPOULOS pleads guilty to lying to the FBI about his conversations with Russians.

-- NYT'S MATT APUZZO: "The plea represents the most explicit evidence connecting the Trump campaign to the Russian government's meddling in last year's election. Mr. Papadopoulos repeatedly tried to arrange a meeting between the Trump campaign and Russian government officials, court records show. Attempts to reach Mr. Papadopoulos were not successful. Mr. Papadopoulos told the F.B.I. in January that the professor was 'a nothing.' But Mr. Papadopoulos now acknowledges that he knew the professor had 'substantial connections to Russian government officials.'" http://go.politicoemail.com/?qs=c12fa619a28a22f584b59c4fd76690f1a85d2d0ecdde1a6c133756decc72bb050e5e7225b4484e31526f983ec1de679f ... The plea  http://go.politicoemail.com/?qs=c12fa619a28a22f576848783b01ecbfa9ea3fc4fc7f8e7238d12f2d059cc5afa67c54fc82648e88f1310590d721f9f6f 

-- THE FIRST INDICTMENTS: "Trump campaign aides charged in Mueller's Russia probe," by Matt Nussbaum, Darren Samuelsohn and Josh Gerstein: "Special counsel Robert Mueller's probe into President Donald Trump's campaign and Russian election interference has dramatically escalated, with authorities indicting former campaign chairman Paul Manafort and unsealing a plea deal recently cut with a foreign policy adviser who met with a Russia-linked contact to discuss 'dirt' on Hillary Clinton.

"The moves are the first official public actions from Mueller, and while they do not directly implicate the president, they show how the special counsel is accelerating his sprawling probe into possible collusion between Trump campaign aides and the Kremlin. Authorities on Monday morning unsealed an indictment against Manafort and fellow campaign official Rick Gates that charged the men with money laundering, making false statements and other counts.

"While both Manafort and Gates had top roles in the Trump campaign, the criminal charges do not discuss any actions clearly related to the presidential race, although the indictment notes that a Ukrainian political party the men worked for had a pro-Russia outlook. The charges, however, could be used to apply pressure on the two former officials to more fully cooperate in Mueller's larger investigation. ...

"Manafort and Gates were indicted on 12 counts, according to a 31-page indictment unsealed on Monday morning, including money laundering, operating as unregistered foreign agents of the government of Ukraine, failing to disclose overseas bank accounts and making false statements to federal authorities. ... Manafort entered an FBI field office on Monday morning with his attorney, Kevin Downing, and ignored shouted questions from a throng of reporters outside the office. He is expected in court on Monday afternoon." http://go.politicoemail.com/?qs=c12fa619a28a22f5c90f4b5f206809b08a4fcf46c32e26cf009371c9c2c7cec0972138cbb2f59b9e234e7f395d8b8534 ... The indictment http://go.politicoemail.com/?qs=e3bfc4a34f3d029dec0df67601ea58f710ca861ba26f4facb3222e8de41878a9912f682178d1d90f69e0e014b1adab8f 

THE PRESIDENT'S RESPONSE -- @realDonaldTrump at 10:25 a.m. "Sorry, but this is years ago, before Paul Manafort was part of the Trump campaign. But why aren't Crooked Hillary & the Dems the focus?????" ... at 10:28 a.m.: "....Also, there is NO COLLUSION!"

-- The indictment encompasses activity "between in or around 2008 and 2017, both dates being approximate and inclusive," which is not "years ago."

-- @ddiamond: "Fundraising email just went out from Eric Trump. Subject line: 'Still standing.'"

OUR BIG QUESTIONS: If Trump either fires Mueller or pardons someone indicted, what will Congressional Republicans do, if anything? So far, several Republicans, including Rep. Trey Gowdy (R-S.C.) on Sunday, have said Trump should let Mueller do his work. North Carolina Republican Sen. Thom Tillis has gone so far as to introduce legislation to protect Mueller. 

BUZZ -- THERE'S A LOT OF TALK about the charges Manafort and Gates are facing related to foreign lobbying -- or FARA violations. DOJ has historically not put a lot of resources into prosecuting FARA cases. Lobbyists who have been in violation typically are able to amend their filings and get off with a fine at worst. Several downtowners are worried that the Manafort and Gates indictments are just the beginning of the Justice Department cracking down on K Streeters for FARA violations. 

FLASHBACK -- NYT's NICHOLAS CONFESSORE and BARRY MEIER on June 16, 2017 -- "How the Russia Investigation Entangled a Manafort Prot&eacute;g&eacute;": "Mr. Gates survived Mr. Manafort's purge last summer amid allegations that his mentor had taken millions of dollars from Kremlin allies, retaining a central role on Mr. Trump's campaign and inaugural committee. But Mr. Gates, 45, soon followed in Mr. Manafort's footsteps once again: In April, amid new questions about Russian interference in the 2016 election, he was abruptly forced out of a lobbying group formed to advance President Trump's agenda." http://go.politicoemail.com/?qs=e3bfc4a34f3d029d46cb076f297e7431d1e312df5c5abe54740355954d732dfe59de0c243fdcd1791225d8e5c81edcc3 

... AND THIS: "FBI Is Probing Puerto Rico Power Contract: Deal for $300 million to fix electrical grid after Hurricane Maria was made by the island's public-power monopoly known as Prepa," by WSJ's Andrew Scurria: "FBI agents from the San Juan field office are looking into circumstances surrounding the disaster-recovery deal the public-power monopoly known as Prepa signed with Whitefish Energy Holdings LLC, according to three people familiar with the matter." http://go.politicoemail.com/?qs=e3bfc4a34f3d029d41c0466a0d8c227fdfff327dbec46086354f765391505e8048bd363eb42ad4199f5afe801e7f7f24 

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MENENDEZ TRIAL UPDATE -- "Judge denies Menendez mistrial request," by Matt Friedman: "A federal judge has refused to declare a mistrial in the corruption case against U.S. Sen. Robert Menendez and co-defendant Salomon Melgen. 'The defense wants to spend morning, noon and night discussing the contracts in each case, the issue of multiple dosages and the issue of scanning with regard to the security contract with regard to the port in the Dominican Republic,' U.S. District Court Judge William H. Walls said. 'It's a question for this court to determine when enough of enough. It's not a question that the court interferes with your presentation of the defense. Absolutely not.'

"Attorneys for Menendez and Melgen had charged that Walls kept them from introducing evidence and key witnesses, depriving them of giving a fair defense. Menendez is charged with helping Melgen in a $8.9 million Medicare dispute, a Dominican port security dispute and securing visas for his foreign girlfriends in exchange for gifts including hotel rooms, private jet flights and around $750,000 in political contributions."http://politi.co/2xyMcCj 

REMEMBER TAX REFORM? -- "House to Consider Five-Year Phase-in for Corporate Tax Cut," by Bloomberg's Jen Jacobs and Anna Edgerton: "House tax writers are discussing a gradual phase-in for the corporate tax-rate cut that President Donald Trump and Republican leaders want -- a schedule that would have the rate reach 20 percent in 2022, according to a member of the chamber's tax-writing committee and a person familiar with the discussions.

"The phase-in plan has been considered, but may not yet be final, said a member of the House Ways and Means Committee, who asked not to be named because the discussions are private. Under that plan, the rate may be reduced from its current 35 percent rate by three percentage points a year starting in 2018." http://go.politicoemail.com/?qs=43937241573b8d77185e29a282b5a3f84bfa4081aa904b1e63e521f3aa37cc0056635e185c3348f8284dbb41028a88df 

-- THE CORPORATE RATE is a big deal for conservatives on the Hill, and even more so in the White House. Delaying the 20 percent corporate rate could be a big problem. 

****** A message from BP: We've contributed to America's economy for over 150 years.  See what that means in your state. ******

(PROBABLY) THE NEXT FED CHAIR -- "Trump expected to announce Powell as next Fed chair on Thursday," by Ben White and Victoria Guida: "President Donald Trump on Thursday is expected to announce his intent to nominate Jerome 'Jay' Powell as the next chair of the Federal Reserve, two administration officials said. 

"Plans are underway to introduce Powell as the nominee to succeed Janet Yellen, whose first term expires in February, the administration sources said. But the officials added that nothing is completely certain until Trump actually makes the announcement. Powell, who first joined the central bank's board of governors in 2012 under President Barack Obama and then was renominated in 2014, is not expected to deviate heavily from Yellen's gradual approach to raising interest rates." http://go.politicoemail.com/?qs=43937241573b8d778e90749cb21fb36929706040c97ec2d3cfa71a49da2c1dfc0a4c86299501e62b357f5028e5621307 

N.Y. MAG: "Billionaire Republicans Privately Diss Trump," by Michelle Celarier: "At this year's [Robin Hood Investment Conference], despite a roaring stock market, the mood was glum. Barry Sternlicht, a billionaire real-estate investor, hotel mogul, and self-described Trump friend and golf partner, seemed to have soured on the president. 'I expected him to go to the middle, because I thought he wanted to be great,' he said of Trump, according to an audio of his off-the-record talk obtained by New York. 'I played [golf] with Donald Trump and his golf game is like his presidency,' he said, eliciting guffaws. 'He's amusing as my friend, but he's not very amusing as president of the United
 States. And I'm a Republican.' 

"Other conference participants sounded the alarm more loudly. Frequent GOP donor Seth Klarman, CEO of $30 billion Baupost Group hedge fund, had already warned his investors about Trump's protectionist policies and the deficits his tax plan would produce. But at Robin Hood, Klarman - who is widely revered in investing circles - offered a much harsher assessment of Trump to his peers. 'The president is a threat to democracy. He has attacked journalists and he's threatening to take away NBC's license,' Klarman said, according to an audio recording of his remarks. 'He's attacking judges. He's violating all sorts of democratic norms, from the emoluments clause to questioning the election and
 threatening to lock up his opponent. People don't focus on this but Nazi Germany had a constitution before Hitler came to power and at the end of the war they had the exact same constitution. It lasted all the way through, but democracy didn't.'" http://go.politicoemail.com/?qs=43937241573b8d772d7c2d3bdd9675ed8e2ccf5e05c0730f489fe7dec78b2f81cda1c70185f48339b9ea909903f832f7 

DEEP DIVE - LUKE MOGELSON in The New Yorker, "Dark Victory": He "reports from Raqqa, where he was embedded with the Kurdish revolutionaries-many of whom are women-who helped the U.S. expel ISIS from the city." http://go.politicoemail.com/?qs=43937241573b8d77233f36745c64200f909da1a13a6503342d08f66e68ca40260a53a277b14bbe556186d04cbc223148

-- CHARLIE ROSE on "60 MINUTES" last night -- "Qatar's emir stands defiant in face of blockade: A blockade that began in early June has shut Qatar's only land crossing. But the small country's leader isn't bowing to pressure to change the non-conformist nation's ways." http://go.politicoemail.com/?qs=43937241573b8d7711f7d2cc7142f7f374388fc24226927b0c5791c36884af1f3ebaddfafd518960620d0b5b8a5bea2f 

VALLEY TALK -- "Facebook's 2016 Election Team Gave Advertisers A Blueprint To A Divided U.S.," by BuzzFeed's Alex Kantrowitz: "During the 2016 election season, Facebook provided political advertisers with a targetable breakdown of a fractured United States, which could've been used as a blueprint for exploiting the country's divisions. 

"According to a political advertising sales pitch obtained by BuzzFeed News, Facebook carved the U.S. electorate into 14 segments -- from left-leaning 'youthful urbanites' to a pro-NRA, pro-Tea Party group it bizarrely labeled as 'the great outdoors.' It detailed their demographic information -- including religion and race in some cases -- and offered them to political advertisers via Facebook's sales teams. For advertisers using Facebook's self-serve platform, the segments could be reached by purchasing larger bundles ranging from 'very liberal' to 'very conservative.'" http://go.politicoemail.com/?qs=43937241573b8d77e80d89953529fb12b855f834d95066da88227d7e928e04d8b9ec8e7aa4375df224358327c3ce0da4 

-- "Facebook Stumbles With Early Effort to Stamp Out Fake News," by Bloomberg's Sarah Frier: "Facebook Inc.'s strategy to stamp out fake news is struggling. The company outsources the process to third-party fact checkers who can only tackle a small fraction of the bogus news that floods the social network, according to interviews with people involved in the process. And screenshots obtained by Bloomberg reveal a process that some partners say is too cumbersome and inefficient to stop misinformation duplicating and spreading." http://go.politicoemail.com/?qs=8615e655dd514d74a10181a7d6350ef841aead6cfcc913e3efc741de52b4bb8bcd73cf4c4a594a3582f2b5b90b293657 

TODAY'S BEYOND THE BELTWAY -- Jerry Brown says he's not running for president -- Massachusetts grapples with 'climate of harassment' on Beacon Hill http://go.politicoemail.com/?qs=8615e655dd514d7401d67791cf5bc20c3a4d4afa247ea9173782b9e5c83733deb49ad1e3648d8777e4ca73e445dc89ff 

ECONOMY TRENDS -- "Homes Are Getting Snapped Up at the Fastest Pace in 30 Years," by Bloomberg's Patrick Clark: "Here's more evidence that the defining characteristic of the U.S. housing market is a shortage of inventory for sale: Homes are sitting on the market for the shortest time in 30 years, according to an annual report on homebuyers and sellers published today by the National Association of Realtors. The typical home spent just three weeks on the market, according to the report, which focused on about 8,000 homebuyers who purchased their home in the year ending in June." http://go.politicoemail.com/?qs=8615e655dd514d74684c23375f609f6910f55c34029d82e975a040dbbdc8cbeb20ea3e3224f6f7d11ed973c1bf281ee7 

MEDIAWATCH -- "NBC News cuts ties with Mark Halperin," by CNN's Oliver Darcy: "An MSNBC spokesman told CNN on Monday morning that Halperin's contract with both had been terminated. Halperin had served as an NBC News senior political analyst and MSNBC contributor, and was a frequent guest on MSNBC's 'Morning Joe.'" http://go.politicoemail.com/?qs=8615e655dd514d74ac58deeb6176657e12cb87fad960e8aede9b390ec548df62323e3d0c5b5fc73a6a7577d775584be3 

PLAYBOOK METRO SECTION -- "What's In The Metro General Manager's New Budget Proposal And What It Means For You," by WAMU's Martin Di Caro: "Metro riders will avoid another fare hike next year, but they should not expect increases in service. That is the gist of the latest budget proposal by Metro general manager Paul Wiedefeld. He shared his plan with WAMU in advance of its official release this week. The $3.1 billion proposal, covering day-to-day expenses as well as major capital projects, reflects the current state of the region's all-important transit system. It is still recovering from years of neglect and poor service, and ridership is only slowly rebounding." 
http://go.politicoemail.com/?qs=8615e655dd514d74a07959c4112ed44791a55d19836fbadb828aa018f5aa35d72ce4a304154727bfe7ab05a48a7a66f9 

SPOTTED -- Rep. Mike Conaway (R-Texas) on the Acela into D.C. on Sunday afternoon ... Newt and Callista Gingrich on a Delta flight from Minneapolis to Reagan on Sunday night.

TRANSITIONS -- Jon Conradi joined FP1 Strategies as managing director, political, working on campaigns and PR initiatives. He most recently was political editor at LifeZette and is the former communications director for Rep. Alex Mooney (R-W.Va.). ... Joe Brettell launched a strategic communications division for Prosody Group. He previously was manager of external engagement at Apache Corporation and is a FleishmanHillard and CRC alum.

WEEKEND WEDDINGS -- Garrick Delzell, strategy director at Climate Action Campaign and former campaign manager for Donna Edwards' Senate campaign and Rep. Annie Kuster (D-N.H.)'s 2012 campaign, married Sara Thomas of the Mitre Corporation "at an engagement party at Lupo Verde that turned into a surprise wedding. ... They met on his first Tinder date and her first Tinder date of the night." Pic of the couple with Paolo Mastrangelo of Holland and Knight giving best man toast http://go.politicoemail.com/?qs=8615e655dd514d747c2f9f0834d68ee01cec6e5ee9efb269ad17045dc902fd8d49ec28a87e04c689e4cd23c6c7b025ec

SPOTTED: Sen. Martin Heinrich (D-N.M.), Matt Burgess, Brian Dunn, Sean Downey, Raghu Devaguptapu, J. Toscano.

 -- Banks Woodruff, a senior communications director within the Koch network, married Melissa Neal, senior congressional associate at the Aspen Institute and a former staffer for Rep. Jim Cooper (D-Tenn.). "The wedding was in Nashville, TN, and friends of all political affiliations enjoyed a late-night snack of hot chicken after dancing. ... Cooper came to the wedding along with a large cohort of his current and former staffers." Pics  http://go.politicoemail.com/?qs=b58526e16357a833c7ce8eaf1112d288858517c7a8936c2eb01f2424de1e7c1b49f42d6fb29fc616e18c83d72d5a4aff ...  http://go.politicoemail.com/?qs=b58526e16357a8337fe32e0e46e100cedd864e8a1bad00ddc016c7ebdc62f0eed01f5d6940e24fbb24901a59cc5d9817

 WELCOME TO THE WORLD -- Heidi Neal, director of corporate affairs at Americans for Prosperity and an NAB alum, and Steven Hite, audit manager for the U.S. Army, welcomed Audrey Marie Neal. Pic  http://go.politicoemail.com/?qs=b58526e16357a8330c493e02d8df3832a1a3d70f70fa858aee29655f2c6fabeef9fb6579abeaef7cf3941bdda3966f61

--@JamesThompsonKS, a civil rights attorney and Democratic candidate in Kansas' 4th congressional district, posts on Twitter: "The Thompsons are proud to introduce you to Adriana Justice! Mom and baby are doing great, now resting." Pic  http://go.politicoemail.com/?qs=b58526e16357a8331cb5d42da530fdf0446b3294500d29eb4bc7938039657a2bfed4dfa4f49e32221635d0144e8883c1

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