The Morning Sixpack - January 13, 2025
Wildfires rage, Grammys in question, Bannon & Musk feud, Jennifer Rubin quits, and Special Counsel Jack Smith resigns—Just another day in America.
Jack Smith Resigns Amid DOJ’s Legal Battle Over Trump Reports
Special Counsel Jack Smith has formally resigned from the Department of Justice (DOJ), as revealed in a court filing on Saturday. His departure follows the submission of his final report on January 7, 2025, and adds another layer to the heated legal disputes surrounding former President-elect Donald Trump.
Smith’s resignation, effective January 10, coincides with efforts to release his report while Trump and co-defendants attempt to block its publication. DOJ officials noted, “The Special Counsel completed his work and submitted his final confidential report on January 7, 2025, and separated from the Department on January 10.”
Smith’s resignation comes as the DOJ appeals a controversial ruling from Florida-based Judge Aileen Cannon, who dismissed charges against Trump and his co-defendants, Walt Nauta and Carlos de Oliveira, citing Smith’s appointment as unlawful. This decision disrupted long-standing precedent and complicated the ongoing Mar-a-Lago classified records case. Meanwhile, Trump’s reelection has derailed the prosecution of two high-profile cases against him, including the Jan. 6 election interference case. Despite these obstacles, Smith drafted a two-volume report summarizing his investigations, which many view as a final effort to hold Trump accountable.
The release of Smith’s report remains uncertain as Trump’s legal team, Nauta, and de Oliveira argue to suppress its contents. Judge Cannon has imposed temporary delays, though the DOJ contests her authority to do so. Compounding the situation is Trump’s upcoming inauguration, which could lead to the shelving of Smith’s work altogether. Attorney General Merrick Garland had planned to release the report’s Jan. 6 volume but withheld the Mar-a-Lago section due to ongoing litigation. The legal battles are far from over, leaving the public in limbo over whether Smith’s findings will ever see the light of day.
Source: The Hill
Legal jargon: Judge Cannon and the Special Counsel's Report
More background:
Aileen Cannon’s Legal Maneuvers Threaten Release of Jack Smith’s Report
The battle over the release of Special Counsel Jack Smith’s report took a contentious turn this weekend as U.S. District Judge Aileen Cannon inserted herself into the legal proceedings, despite lacking jurisdiction over either the Mar-a-Lago case or the January 6 investigation. Cannon’s delays have fueled speculation that the clock may run out on the report’s publication, a concern echoed by legal experts. As law professor Steve Vladeck noted, “The urgency here stems from the unspoken but universally held understanding that, if the January 6 volume hasn’t been publicly released by January 20, it won’t be.”
Smith, who resigned from the Department of Justice (DOJ) on January 10 after submitting his final confidential report days earlier, spearheaded investigations into Donald Trump’s mishandling of classified documents and election interference. His departure, quietly mentioned in a DOJ filing, comes as Trump and his co-defendants—Walt Nauta and Carlos de Oliveira—mount legal challenges to block the release of Smith’s findings. Judge Cannon’s unexpected involvement has compounded the delays, with Trump’s legal strategy of “delay as a friend,” as legal analyst Joyce Vance aptly put it, threatening to shelve the report indefinitely.
The stakes are high, with the January 6 volume seen as a potential last opportunity for accountability before Trump’s inauguration on January 20. Legal analysts warn that further appeals, potentially reaching the Supreme Court, could permanently bury Smith’s work. Critics of Cannon’s actions argue that her interventions are not only unwarranted but also jeopardize public access to critical findings on one of the most turbulent periods in U.S. history.
Source: Talking Points Memo
Steve Bannon Declares War on Elon Musk in Fiery H-1B Visa Rant
In the latest episode of "As the MAGA World Turns," Steve Bannon has set his sights on tech overlord Elon Musk, vowing to have him “run out” of the White House faster than a Tesla on ludicrous mode. Why? Because Musk dared to support H-1B visas for skilled foreign workers—an unforgivable sin in Bannon’s book of grievances.
“I will have Elon Musk run out of here by Inauguration Day,” Bannon huffed to Corriere della Sera, while calling Musk “a truly evil guy, a very bad guy.”
It’s Bannon versus Musk in the ultimate showdown of egos, and the stakes couldn’t be pettier.
At the heart of this tech-political melodrama is Musk’s unapologetic support for H-1B visas, which he calls essential to solving Silicon Valley’s endless “shortage of excellent engineering talent.”
But Bannon isn’t buying it. In true Bannon fashion, he unleashed a xenophobic tirade, telling Musk to “go back to South Africa” because, apparently, White South Africans are “the most racist people on earth.” Musk, ever the Twitter combatant, shot back by branding anti-H-1B Republicans as “hateful, unrepentant racists,” because why not escalate things even further?
Meanwhile, Trump—who apparently never met a contradiction he didn’t like—has been cheerleading for H-1B visas, calling them a “great program” that he has used “many times” at his properties (alas, he’s lying). So, while Musk continues his quest for a "meritocratic society," Bannon has made it his personal mission to “take this guy down.”
Whether this MAGA civil war ends with Musk at the helm of Trump’s government efficiency circus or with Bannon grumbling on his podcast, one thing is certain: the drama isn’t going anywhere.
Source: My Daily Grind
Texas Court Slams American Airlines for ESG Investments in 401(k) Plans
In a groundbreaking decision, a federal judge in Texas ruled that American Airlines violated federal law by prioritizing environmental, social, and governance (ESG) principles over financial returns in its employee retirement plan. The case, brought forward by pilot Bryan Spence on behalf of over 100,000 401(k) participants, alleged that ESG-focused funds underperformed, harming employees’ savings. US District Judge Reed O’Connor agreed, stating, “ERISA does not permit a fiduciary to pursue a non-pecuniary interest no matter how noble it might view the aim.”
The court found that American Airlines breached its fiduciary duty under the Employee Retirement Income Security Act (ERISA) by allowing asset manager BlackRock to pursue goals unrelated to maximizing returns. Judge O’Connor criticized the airline’s “incestuous relationship” with BlackRock, highlighting how it influenced the plan’s administration to align with corporate climate advocacy goals rather than participants' financial interests. The decision marks a significant challenge to ESG investing strategies in corporate benefit plans and reflects growing conservative backlash against socially conscious investing.
This case adds to broader legal scrutiny of ESG practices. BlackRock, though not a defendant in this suit, has faced similar accusations from a coalition of states alleging anti-competitive practices tied to climate advocacy. While American Airlines has not commented publicly, BlackRock has defended its ESG approach as aligning with clients' long-term goals. However, Judge O’Connor maintained that ESG investments “often underperform traditional investments by approximately 10%,” underscoring the financial risks to plan participants.
Source: Investment News
Jennifer Rubin Resigns from The Washington Post, Slams Jeff Bezos for Undermining Journalism
In a fiery exit, Washington Post columnist Jennifer Rubin announced her resignation, blasting the newspaper’s billionaire owner Jeff Bezos for steering the publication toward political neutrality in a time she believes demands bold, uncompromising journalism.
“Corporate and billionaire owners of major media outlets have betrayed their audiences’ loyalty and sabotaged journalism’s sacred mission,” Rubin wrote in her resignation letter, adding, “Jeff Bezos and his cronies accommodate and enable the most acute threat to American democracy—Donald Trump.” Rubin’s departure marks another high-profile exit as the Post grapples with layoffs and talent departures ahead of Trump’s second term.
Rubin, an outspoken Trump critic and vocal Biden supporter, accused the Post of failing to uphold its journalistic integrity.
In an interview with CNN, she stated, “The Post has failed spectacularly at a moment that we most need a robust, aggressive free press.”
Her scathing critique comes amid broader turmoil at the Bezos-owned outlet, including the loss of over 250,000 subscribers and a series of editorial resignations following a controversial decision to spike an endorsement of Vice President Kamala Harris. Rubin joins other notable departures such as Charles Lane and Robert Kagan, signaling what some have described as a “rudderless” era for the once-iconic newspaper.
Rubin isn’t leaving the media world quietly. She has teamed up with former Obama White House official Norm Eisen to launch The Contrarian, a new publication with the tagline, “Not owned by anybody”—a clear jab at Bezos. As Rubin moves on, her critique underscores a larger conversation about the role of corporate ownership in shaping the direction of American journalism during politically charged times.
Source: My Daily Grind
Will the Grammys Be Delayed? L.A. Wildfires Force Organizers to Rethink Music’s Biggest Night
As Los Angeles battles devastating wildfires, the 67th Annual Grammy Awards, scheduled for February 2 at Crypto.com Arena, may face a significant change. Discussions are underway to either postpone the event or pivot it into a fundraiser, sources told The Hollywood Reporter. “It’s highly likely the Grammys will postpone,” said a senior television executive, citing the city’s disaster status and ongoing challenges from the fires, which have already claimed over 5,300 structures and 11 lives.
Logistical and emotional challenges are mounting for the Recording Academy, which requires hundreds of hotel rooms for attendees, many of whom have been personally affected by the disaster. The fires, described as the most destructive in Los Angeles history, have displaced thousands of residents, including celebrities like Mandy Moore, Milo Ventimiglia, and Jeff Bridges. Meanwhile, Grammy head Harvey Mason Jr. is reportedly considering multiple scenarios, with a possible benefit concert on January 30 led by MusiCares, the Academy’s foundation.
The wildfires have forced L.A.’s iconic venues, including Crypto.com Arena, to cancel events, with the Lakers stating they are “focused on what matters most.” While the Grammys have weathered delays in recent years due to COVID-19, the scale of the current crisis adds unique pressures. With containment efforts ongoing and the city still reeling, the Recording Academy must weigh its decision carefully as time ticks down to music’s biggest night.
Source: The Hollywood Reporter
California Wildfires Devastate L.A. County: Palisades and Eaton Fires Cause Staggering Losses
Los Angeles County is reeling as firefighters continue to battle multiple wildfires that have wreaked havoc across the region. The Palisades Fire, now 8% contained, has burned over 21,000 acres, devastating homes, businesses, and landmarks along the Pacific Coast Highway. Evacuations have expanded to hillside neighborhoods near the 405 Freeway and areas south of the 101 Freeway, including Encino Reservoir. Meanwhile, the Eaton Fire in Altadena and Pasadena has consumed nearly 14,000 acres, climbing toward Mt. Wilson and prompting additional evacuations, with containment at just 3%, according to Governor Gavin Newsom.
These fires, compounded by a red flag warning, have left thousands of residents displaced and caused untold destruction. The Kenneth Fire, burning near the border of Los Angeles and Ventura counties, is 35% contained, while smaller fires like the Hurst and Lidia fires have seen progress in containment. However, the scale of the disaster remains overwhelming, with the Palisades Fire alone marking one of the worst in the area’s history.
The region is bracing for more challenges as firefighters work tirelessly to contain the blazes and residents begin to grapple with the immense losses. Evacuations, destroyed landmarks, and widespread structural damage have turned Los Angeles into a disaster zone. Officials warn that with containment efforts still in their early stages, the true toll of these fires is yet to be fully understood.
Source: Los Angeles Times