(cache) White House official says Breitbart was source of Trump's wiretaps claim - Axios
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White House official says Breitbart was source of Trump's wiretaps claim

Andrew Harnik / AP

The president has quite a habit of reposting material he learned on far-right media, and now the AP is picking up another example: his claim that former President Obama wiretapped Trump Tower.

It came from Breitbart, which reprinted a claim from radio host Mark Levin. That was then picked up by the White House, and a staffer placed that piece in Trump's daily reading pile, according to a White House official who wouldn't speak publicly to the AP, citing a lack of willingness to talk about Trump's private routine on the record. Trump reportedly read that story on Saturday, and then started to tweet.

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Federal judge rules second travel ban can't affect Syrian family

Photo Courtesy: Jonathan Hyams, Save the Children via AP

A U.S. District Judge in Madison, Wisconsin, Michael Conley, blocked the enforcement of Trump's revised travel ban from affecting a Syrian man and his family on the grounds that it is an anti-Muslim ban that violates his freedom of religion rights and right to due process, per an AP report. This is the first ruling on Trump's travel ban 2.0.

This does not block the entire ban, but applies a temporary restraining order that blocks its enforcement for this family.

The same Syrian man filed in February, but on the grounds that Trump's first travel ban had wrongly interfered with the visa process for his family. The judge did not grant that request then.

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Uber hires veteran headhunting firm to find COO

AP File

Uber, which earlier this week said it will seek to hire a COO to help chief executive Travis Kalanick steer the ship, has settled on headhunting firm Heidrick & Struggles for the job, as Business Insider reported and Uber confirmed to Axios.

Track record: Heidrick & Struggles is responsible for the hiring of several high-profile executives, including Eric Schmidt as CEO of Google in 2001, and Satya Nadella as CEO of Microsoft in 2014.

The story has been corrected to show that Business Insider, not CNBC, first reported the news.

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Conservative governors come out against House Obamacare replace plan

Rogelio V. Solis / AP

Conservative governors are beginning to voice their disapproval over the House Republicans' struggling Obamacare replacement plan.

On Wednesday, Mississippi Gov. Phil Bryant said the American Health Care Act looked too much like Obamacare.

A spokesman for Bryant said the governor has talked to the White House and to Secretary Price "and is confident his and other conservative voices are being heard."

Here's how the governor explained his thinking in a statement to Axios on Friday:

"Congress has offered its plan to repeal and replace Obamacare. Republicans have waited eight long years to get this done. Let us hope we are near. I am concerned that the bill maintains many of the entitlements included in Obamacare. Conservatives in the House and Senate have similar issues with the bill, as does the Heritage Foundation."

Now it's Kentucky Gov. Matt Bevin who's coming out against the current plan. According to the AP, he said that he agrees with Rand Paul and is "not impressed" with the plan that House Republicans wrote in collaboration with the Trump Administration.

We're hearing that additional conservative governors will come out against the current plan in the coming days.

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Nation's 2nd largest health insurer backs AHCA

Matthew Hurst / Flickr cc

Anthem CEO Joseph Swedish told top House Republicans in a letter obtained by Morning Consult Thursday that the company supports the Obamacare repeal bill, and urged lawmakers to move the process forward "as quickly as possible."

"Without these changes, the market will continue to deteriorate in 2018 and therefore I am writing to offer my support for moving this process forward as quickly as possible," wrote Swedish.

Swedish's support comes as a series of doctors and hospital groups have railed against the proposed American Health Care Act as it's currently written. But Swedish argued that several provisions of the bill are "essential."

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Top Marine to victims: "trust us" in nude photo investigation

Cliff Owen / AP

Marine commandant Gen. Robert Neller encouraged the women who were targeted in nude photos shared amongst 30,000 Marines and other members of the military online to come forward, "trust" the Marine Corps, and help:

"I'm going to ask them to trust us. I understand why that might be a bit of a reach for them right now. But I can't fix this ... The only way there is going to be accountability in this is somebody comes forward and tells us what happened to them."

Fewer than 10 women victims have come forward so far in the investigation into the Facebook group "Marines United" and the web site where service members encouraged sexual assault and photo-sharing of nude body parts.

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Democrats target FCC chief over press freedom questions

Robin Groulx / Axios

Democrats are stepping up their questions about FCC Chairman Ajit Pai's views on press freedom, a new line of criticism as Pai rolls back agency rules they supported. The Democratic members of the Senate Commerce Committee said in a letter they are concerned that at a hearing this week Pai wouldn't say directly whether he agreed with President Trump that some media outlets are the "enemy of the American people."

More than once, Pai said he didn't want to get involved in a political debate broader than the FCC, but reiterated his support for the First Amendment. The letter shows this isn't an issue Senate Democrats are ready to let go:

"While you have long claimed to be an advocate for the freedom of the press and the First Amendment, your silence on the matter and refusal to take a stand against threats levied at the media is troubling given your regulatory and oversight role over the industry. Moreover, such a lack of response could call into question the ongoing independence of the FCC under your watch."

What Pai says: Asked about the letter, an FCC spokesman pointed to a Pai statement from 2016 where he said that "newspaper reporters continue to do important work throughout our country each and every day."

"Chairman Pai continues to believe that," the spokesman said. "Chairman Pai is a strong supporter of the First Amendment rights of the media and all Americans. He has protected those rights at the FCC and will continue to do so as long as he is privileged to serve at the Commission."

Pai pledged at the hearing to run an agency independent of the White House.

Why this matters:

  • Pai is up to be reconfirmed by the Senate for another term on the commission. The Democratic lawmakers said in their letter that his answers to the press freedom questions in their letter "will inform our ongoing consideration of your renomination for an additional five-year term on the FCC."
  • Even though the president appoints the FCC Chairman, the agency is supposed to be independent. Questioning an FCC chairman's autonomy from the White House is a way to paint their policies as politically motivated. It's a criticism conservatives know well: they argued that Pai's Democratic predecessor, Tom Wheeler, was in the pocket of the Obama administration.

What to watch: How Democrats handle Pai's renomination, and if their broader concerns seem to be gaining traction. The Democrats behind a letter want an answer to their questions by the end of next week.

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SEC shoots down Winklevii bitcoin ETF

AP Photo/Evan Agostini

The U.S. Securities and Exchange Commission today decided not to mainstream bitcoin, by ruling that it will not permit the public listing of an ETF (exchange traded fund) that would have effectively allowed people to buy and sell the digital currency like stock.

What? The SEC disapproved a request to allow the BATS stock exchange to list the Winklevoss Bitcoin Trust ETF, which was founded back in 2013 by the Winklevoss Brothers of Facebook (and The Social Network) fame. It also may dump a giant roadblock in the way of other future publicly-traded bitcoin investment vehicles. For example, the future is now a bit fuzzier for Barry Silbert's Bitcoin Investment Trust, which recently filed for a $500 million IPO (although it's structured differently from Winklevoss, and is already publicly traded on the OTC).

Giphy

So? Had the SEC approved the Winklevoss effort, it could have significantly increased liquidity for the bitcoin market ― not only by encouraging retail investors to participate, but also investment advisors with larger bankrolls. More diverse bitcoin exposure also could have helped reduce price volatility, although anticipation of a more favorable ruling had caused the price of bitcoin to spike:


Bitcoin prices are now tanking in reaction to the ruling, down more than $200 at last check.

SEC explanation for its ruling: "First, the exchange must have surveillance-sharing agreements with significant markets for trading the underlying commodity or derivatives on that commodity. And second, those markets must be regulated. Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated."

Industry reaction: "The Winklevoss ETF proposal was rejected because the SEC found that the significant markets for Bitcoin tend to be unregulated overseas markets that are potentially subject to price manipulation. But this creates a chicken and egg problem. How do we develop well-capitalized and regulated markets in the U.S. and Europe if financial innovators aren't allowed to bring products to market that grow domestic demand for digital currencies like Bitcoin?" ― Coin Center executive director Jerry Brito

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Sessions asks 46 Obama-appointed U.S. attorneys to resign

Susan Walsh / AP

U.S. Attorney General Jeff Sessions has asked the 46 remaining Obama-appointed U.S. federal prosecutors to resign, according to the AP. This practice is routine for all presidents, it is just happening a little later than usual. The DOJ said career prosecutors in Sessions' office will continue with investigations until new attorneys are confirmed.

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Dana-Farber Cancer Institute at risk of losing Medicare funding

Mararie / Flickr Creative Commons

The federal government is threatening to cut off Medicare funding at the renowned Dana-Farber Cancer Institute in Boston after finding the cancer hospital "was not in substantial compliance" with Medicare rules.

Most of the violations stem from Dana-Farber inappropriately relying on Brigham and Women's Hospital to handle many day-to-day functions, according to documents obtained by Axios. Dana-Farber has until June 30 to fix the problems cited by the Centers for Medicare and Medicaid Services, but that date already marks the third extension from the agency. The original deadline was November 21, 2016.

If CMS terminates its Medicare contact with Dana-Farber, the hospital would lose more than $243 million in annual Medicare funds — or about a quarter of its entire revenue.

What happened: Massachusetts officials originally surveyed Dana-Farber in August, and this process has mostly been under wraps since then. Dana-Farber has a unique structure, in that its 30-bed inpatient facility is housed within Brigham and Women's Hospital, which is located a block away. But the two not-for-profit organizations are separate, independent entities.

That's the root of the problems, according to the CMS report. Dana-Farber has relied on Brigham and Women's to handle patient complaints, inform patients about their rights, track care quality and medical errors, verify the credentials of medical staff, and provide full nursing services. Dana-Farber's "failure to provide the independent oversight...placed all potential patients at risk to receive poor quality of care," the report said.

Dana-Farber says it has submitted two "plans of correction." In a statement, it said that CMS has "been very complimentary about the actual care we provide, but nevertheless want to ensure that Dana-Farber is more clearly responsible for all of the services provided to patients in our inpatient hospital."

Why this matters: Medicare has a lot of rules and regulations, known as conditions of participation, but the federal government only threatens to pull funding if it finds egregious offenses. Academic hospitals and other renowned health care organizations like Dana-Farber hold high rankings and reputations, but they are just as capable of flouting Medicare rules, sometimes putting patient care at risk. Modern Healthcare, for example, detailed Medicare safety violations at the Cleveland Clinic in 2014.

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The trade war in the Oval Office

Pablo Martinez Monsivais / AP

Trump's key economic advisors are pitted against each other on trade policy, with senior advisor Steve Bannon and trade advisor Peter Navarro on one side and National Economic Council Director Gary Cohn and his staff on the other, according to FT. One official said there was "a fiery meeting" recently in the Oval Office.

The FT says that Navarro is losing clout and being sidelined in the White House. As a European official put it: "His influence seems to be diminishing quickly."

Why it matters: FT nails the meaning in a quote from Thea Lee, a trade official at the AFL-CIO, who said, "At the moment it appears that the Wall Street wing of the Trump administration is winning this battle and the Wall Street wing is in favour of the status quo in terms of US trade policy."