victim thanks to a scandal. breaking overnight. michael flynn resigning under fire. announcement coming in the mounting evidence that flynn spoke to the russians about sanctions and lied about it to top officials. the decision to step down moments after cnn learned the justice department warned the white house last month about flynn's contacts with moscow and possible vulnerability to blackmail. the stunning demise of the president's top confidant sending shock waves through washington. let's go to ryan browne at the capital. >> reporter: thank you, christine. the department of justice under acting attorney general sally yates warned the trump administration they intercepted phone calls and transcript was flynn and the russian ambassador kislyak. it was found that the two discussed sanctions. flynn was forced last night to submit a letter of resignation from the fallout. that letter read i briefed the president and vice president and others about my phone calls with the ambassador. i apologize to the president and vice president and they accepted my apology. i'm tendering my resignation. honored to have served our nation and the american people in such a distinguished way. now, flynn will be replaced in the short-term by retired lieutenant general keith kellogg. he was previously serving as the chief of staff. he is a long time adviser of trump. there are others in the running. retired general david petraeus. he has baggage cording accordin officials. and robert harward. another major officer who worked in central command. his name is in the running. >> it will be a very dramatic day after a dramatic evening. thanks, ryan browne. >> it was confusing at the white house. we were getting conflicting messages all day long with just where general flynn stood and how the president felt about it. let's go to dan merica in washington for a sense of that. if your head isn't still spinning. >> reporter: it was difficult to keep up. the counselor to the president saying that the president had full confidence in michael flynn. 64 minutes later, to be exact, you had white house press secretary sean spicer saying the position is evaluated. it is remarkable how fast the story moved in the white house, but the fact he has resigned after less than a month in office. it was interesting that donald trump did not want to talk about this yesterday in the oval office when he was swearing in steve mnuchin. >> do you have confidence in michael flynn? >> when will you evaluate michael flynn? >> thank you. >> reporter: awkward to be polite. there are so many questions here. how much did he know and who in the administration knew flynn was talking to the russian ambassador about this beforehand? we were told he resigned and not fired despite what president trump in his public persona liking to fire people. the white house wants to move past this. that's going to be tough given how many questions still persist. >> dan merica. thank you. >> crazy day. >> let's bring in our guest from washington. josh rogin. and ellis henican. he writes the column for the metro papers. let's start in washington where it was an eventful afternoon and evening, josh. there are a lot of questions this morning about the justice department alerting the white house to concerns about michael flynn. what did they know? did anybody else know michael flynn was talking to the russian ambassador? maybe he was asked to by the president. these are questions asked and unanswered. >> what we saw was the drip, drip, drip of stories and leaks about michael flynn. who did he talk to and what did he say? essentially it became too much for the white house to deal with. it is a thing where none of the individual stories would be enough to fire the national security advisor. it was a huge problem and they decided the easy way was to get rid of the problem. get rid of michael flynn. it is a stunning fall from grace from a guy who is close to the president during the campaign. very close to him all throughout the transition. crucial in appointing a ton of officials remain in the administration. briefing the president every day. some say more than anyone else. the big question is who will take over that role? who is the president's right hand man? no matter what he did on russia, his role was bigger and more important. it will be big shoes to fill. >> during the transition when the president-elect was taking the briefings, we were told general flynn is briefing him several times a day. that was his main conduit to information. it begs the question. would general flynn have the conversation about sanctions without the president-elect's knowledge? that is some the president has not answered directly. not yet. ellis, friday, the president was asked about the story. he was on the way to florida on air force one. i think we have the sound. let's play the non response to that. >> i don't know about that. i haven't seen it. what report is that? >> he talked to the ambassador of russia before you were inaugurated. >> i haven't seen. that i'll look at that. >> it was friday the president saying i haven't seen it. i'll look into it. we learned overnight that the justice department told the white house that general flynn had the conversations weeks ago. sanctions came up. no one told the president or was the president evading the question artfully. >> timelines are stubborn. we know that sally yates, acting attorney general, did give a briefing to don mccann, the white house counsel. i guess we don't know that he told president trump about it. it seems highly likely he would. if you are talking to the national security advisor every day, it is something that would have come up in the conversation. >> the whole thing, josh rogin, is fascinating. what is he moving on to? you say these are big shoes to fill. general petraeus. >> i don't think president trump is taking hiring and firing cues from sally yates. he would not fire general flynn based on him talking to the ambassador. remember that day after the russians decided not to act on the sanctions. donald trump said vladimir putin, i told you he was smart. it is not like he was working against the policy of the administration. they are moving on because it is a political problem. let's see in addition to this, they open air national security meeting in maulr-a-lago. they walked back the china policy. it looks like the keystone cops. they say okay. all of the horrible things you read in the press about what is going on in national security, that's all over. nothing to see here. we got rid of the problem. it was michael flynn. the truth is the problem wasn't michael flynn. there's a lot going on that michael flynn is not responsible for. he is the fall guy. he is taking the blame. when they say they are moving on, they are saying all of those stories that were bad about what's going on in national security and the trump administration, that's solved. let's move on. >> ellis, you are nodding. >> moving on is please don't ask me questions about it. let's take one step back. this is the first real stumble. the first -- >> the first? >> the first one you can't interpret a way. no way to say i appointed this guy to my advisorme. i made him the guy i listen to more than anyone else. he had to leave two weeks in. there is no way to spin that in a way that makes it good. i don't know. to me, it's the one that even folks in the administration have to say, you know, that general flynn thing didn't work out so well. >> we have a lot more questions about this. good thing you are coming back to talk about it more. one of the president's top money men sworn in to his new post. but there is a nominee whose confirmation seems in serious jeopardy. that's next. with hyaluronic acid it plumps skin cells with intense hydration and locks it in. for supple, hydrated skin. hydro boost. from neutrogena start here. at fidelity, we let you know where you stand, so when it comes to your retirement plan, you'll always be absolutely...clear. it's your retirement. know where you stand. you'll always be absolutely...clear. hei don't want one that's haded a big wreck just say, show me cars with no accidents reported find the cars you want, avoid the ones you don't plus you get a free carfax® report with every listing i like it start your used car search at carfax.com ♪sweet, sweet st. thomas nice. ♪ so nice, so nice. ♪st. croix full of pure vibes. ♪ so nice, so nice. ♪ st. john a real paradise. ♪ so nice, so nice. ♪ proud to be from the virgin islands. ♪ ♪ and the whole place nice. to experience your virgin islands nice, go to visitusvi.com. din pure gold.e... the new 24k nudes palette... from maybelline new york. 12 pigment-rich shades... from gilded gleams, to precious metals. maybelline's the 24k nudes. make it happen ♪maybelline new york it's a performance machine. engineering... with this degree of intelligence... ...it's a supercomputer. with this grade of protection... ...it's a fortress. and with this standard of luxury... ...it's an oasis. the 2017 e-class. it's everything you need it to be... ...and more. lease the e300 for $549 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. don't pay hundreds more for taxes and fees on your wireless bill. introducing t-mobile one. now with taxes and fees included. get 4 lines of unlimited lte data for 40 bucks each. all unlimited. all in! switch to t-mobile today. only tylenol® rapid release gels have laser drilled holes. they release medicine fast, for fast pain relief. tylenol® i pull inspiration from around the globe.ner, jared's commitment to quality and craftsmanship has helped bring my designs to life. each hand-set ring is my interpretation of timeless classics. the vera wang love collection. now available at jared. all right. two of president trump's top money men find themselves in different spots. andrew puzder's nomination seems to be in jeopardy after delays and the harsh criticism. he is facing push back from republicans. four gop senators withholding support. susan collins and lisa murkowski and tim scott and johnny isak x isakson. now gop leadership is scrambling to save puzder's nomination. the hearing is scheduled for thursday. steve mnuchin, hello, mr. treasury secretary. he was sworn in after passing the final senate vote. he is a former partner of goldman sachs and mortgage bangeban banker. he branched out from wall street banking and did other things. including owning a mortgage bank. a new blow for the trump administration travel ban. a federal judge in virginia granted the request to halt the ban. it effecting everyone who lives in virginia. the judge wrote maximum power does not mean absolute power. this came on the same day the trump administration was back in the seattle courtroom facing the federal judge who first stopped the ban. let's get the latest from laura jarrett live from washington. where are we now in this? >> reporter: good morning, john. in yet another twist in the ongoing legal drama over the president's executive order, district court judge james robart, the same judge who halted the travel ban, denied a request from the trump administration yesterday to postpone any further proceedings in his court while the ninth circuit court of appeals hears the case against more judges. what it means is that the nationwide challenge against the travel ban brought by the states, washington and minnesota, will now proceed to the merits in front of judge robart. they will demand documents, e-mails and depositions. now sources are telling us the trump administration is huddling up on legal options. including rewriting or modifying the executive order. some say they have to move fast here because the court rulings are popping up all over the country. a different federal judge in virginia put a halt to enforcing the executive order against virginia last night. the ball is squarely in the government's court on what happens next. >> will they draft a new ban or new executive order? 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coy wire, great to see you. and huge night at the white house. president's national security advisor is out. resigning after the controversy swirling about his phone calls with russia. now new question s about what te white house knew and when. how's your cafe au lait? oh, it's actually... sfx: (short balloon squeal) it's ver... sfx: (balloon squeals) ok can we... sfx: (balloon squeals) goodbye! oof, that milk in your coffee was messing with you, wasn't it? try lactaid, it's real milk, without that annoying lactose. good right? yeah. lactaid. the milk that doesn't mess with you. you fand together, of your dreams... you had the kid of your dreams. now you can put them in the car of your dreams... for a lot less than you might think. with a certified pre-owned mercedes-benz, you can enjoy legendary safety, innovation and performance at a price you can afford. and that's a pretty sweet dream. visit the certified pre-owned sales event, now through february 28th. only at your authorized dealer. mercedes-benz. the best or nothing. don't pay hundreds more for taxes and fees on your wireless bill. introducing t-mobile one. now with taxes and fees included. get 4 lines of unlimited lte data for 40 bucks each. all unlimited. all in! switch to t-mobile today. start here. at fidelity, we let you know where you stand, so when it comes to your retirement plan, you'll always be absolutely...clear. it's your retirement. know where you stand. michael flynn is out. big questions remain about who knew who and when about his conversations with moscow before the inauguration. we have live coverage beginning right now. welcome back to "early start." i'm christine romans. >> i'm john berman. great to see you. 30 minutes after the hour. a stunning turn of events. 25 days into the trump administration, just 25 days, the president's national securities adviser michael flynn is out. this comes that flynn spoke to the russians during the transition about sanctions and lied about it to top officials or misled them. now the questions don't stop with general flynn. overnight, we learned the justice department warned the white house last month about flynn's contacts with moscow and his possible vulnerabilities to blackmail. the white house knew weeks ago. that is a twist in the stunning fall of the closest confidant for the president. let's get to ryan browne to get us up to speed with what happened. >> reporter: john, the acting attorney general, sally yates, informed the incoming trump administration that they were aware of the phone calls between flynn and the ambassador kislyak. the transcripts of the calls show the conversations with not just pleasantries. they extended to sanctions. flynn released a letter of resignation. saying i inadvertently briefed the president and others about my phone calls with the russian ambassad ambassador. i apologized to the president and vice president. i'm tendering my resignation. honored to have served our nation and the american people in such a distinguished way. now, flynn's departure from the white house leaves an opening that is temporarily filled by retired lieutenant general keith kellogg. he was the director of the nse. he was a vietnam vet. other names in contention for the post is david petraeus. he was forced to resign from the cia for disclosing classified information. officials say he has baggage. another name we are hearing is robert harward. he is a navy s.e.a.l. and served under james mattis. well known to at least one member of the administration. we will see in the coming days who becomes the permanent national security adviser. >> ryan browne for us in the white house. there are questions raised about the past. thank you. the resignation of michael flynn followed chaos and contradictions all while the president is silent about the fate of his national security adviser. i want to get more from dan merica live from washington. the change in tone and actual words from white house officials every hour was remarkable. >> reporter: it was difficult to keep up at times if i put it politely. you had kellyanne conway saying at 4:00 that donald trump has the full support of general flynn. then a mere 64 minutes later, you have sean spicer saying his post is being evaluated. and let's take a listen to trump when he was swearing in steve mnuchin. >> do you have confidence in michael flynn? >> when will you be evaluating michael flynn? >> thank you. >> reporter: we are told by one op official that donald trump wants to move past this. that will be difficult because of the questions that remain. when did he know about the comments? when was the white house informed? did the counsel's office tell the president? so many questions going forward that we will look to get answered today by president trump. >> dan merica for us in washington. let's talk about this with our guests from washington. analyst josh rogin and here in new york, ellis henican. josh rogin, first, to you in washington. what was the straw that broke the camel's back here? why was this too much all of a sudden for the white house? >> i think it was just sort of a drip, drip, drip of things over time that became a critical mass at which point michael flynn was more of a problem than they wanted to deal with. this is not just about the russia call. michael flynn has been under attack by members of congress and in the administration and the national security department from the get-go. he was a guy with a unique relationship with the president. interpreting the daily brief and getting between that and the president of the united states. he had a channel and the teamworkitea team working behind the scenes that wasn't shared. whel all of the stories started to break, it became clear all of those people who are enemies of michael flynn, this was the time. eventually, it was enough that they made their move. the exa suffice it to say, michael flynn had enemies on all sides. >> we were told he apologized to all involved. it sounded like the apology they would move forward. there was reporting, ellis, people close to the vice president did not like this. they had gone on television and said no discussions of sanctions when there was. isn't it possible that trump told flynn to talk to the ambassador about sanctions and lined intentionally? >> in that is an interestithat . bosses, sometimes like it when you do that. they tend to be loyal to underlings to tell them how right they are. >> i have blown this for a long time. >> we should have had a talk about this, john. that is the dynamic. all of the other people around and maybe exception of steve bannon, suspicious of this guy. he is playing to the audience of one. >> that is the open question here. general flynn was the person briefing president-elect trump and candidate trump and now president trump. did they talk about the sanctions before the phone call? we will ask the president when we get a chance later on. the other question is when did the white house counsel use the information after they went to him? what happened when that information got to the white house? >> there was a breakdown in process here. remember, the day after the obama administration put the sanctions on russia and after flynn apparently talked to kislyak about it, donald trump tweeted, look at vladimir putin. i knew he was smart. >> we have the tweet. great move by vladimir putin. i always knew he was very smart. >> it is not as if whatever flynn was saying to kislyak. when you talk about sanctions on russia, the white house has been very murky about the sanctions. it is not like flynn was coloring outside the lines. apparently everyone did not know what he was doing. now everyone knows what he was doing and people have their feathered ruffled. it is not a team of rivals. it is rival teams. michael flynn has his team in the white house which is doing its own stuff. largely outside the knowledge of the other teams. now that is over. he has been eliminated. now it is the game of thrones has one less player. >> hold on a second. you know what is not over? the president's views on this thing. any reason we're supposed to think donald trump has changed his feelings about america's relationship with russia? i don't see any signs of that. until that changes, you can put anyone you want in that position. i don't know the policy will change. >> who is the one to guide and illuminate the president's thinking on national security now? josh, how much was michael flynn influencing the president in terms of world view? >> i think they were as close as lips and teeth to quote. they were talking all day every day. the president is getting national security information from michael flynn for months. now that is all thrown into question. there will be a competitiocompe. whatever michael flynn did or didn't do or said or didn't say, the reality is we have a huge hole in the national security leadership. there will be a number of people rushing to fill it. >> more for steve bannon. >> thank you. 40 minutes past the hour. we'll be right back. ? oh, it's actually... short balloon squeal) it's ver... sfx: (balloon squeals) ok can we... sfx: (balloon squeals) i'm being so serious right now... i really want to know how your coffee is. it's... sfx: (balloon squeals) hahahaha, i had a 2nd balloon goodbye! oof, that milk in your coffee was messing with you, wasn't it? 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[laughs] ah... ahem... show me the carfax. start your used car search at the all-new carfax.com. it's fitting so much news on the last day john berman and i will be on the anchor desk. we have been here for three years getting up in the middle of the night. this is our final day. leslie tucker put this together. >> i'm christine romans. >> i'm john berman. it is monday. a cold monday. january 6th. >> just over three years ago we officially uttered our first words. since, you trekked all over the country for our show. >> i'm john berman live in farmville, virginia. john berman here at the university of nevada in las vegas. >> it is 4:00 a.m. in the east. i have no idea what time it is here. >> still, we found time to start an infamous social media movement. >> cheers to you. >> i'm joining the battle. >> i don't. >> john berman in week four of the mugs now mission. bermudan, your time has com. mugs. now you can have yours. >> cheers. >> berman right there. finally getting the respect i so deserve. >> while i know we'll have a special place in each other's hearts, there's someone else who takes a top spot. >> happy anniversary to my wife. >> not her. >> tom brady. the good stuff. tom brady. >> quarterback tom brady. >> i could not show you a picture. >> i'm sorry. >> look at him. look at him. >> patriots quarterback tom brady may make it look easy. >> you have been a super fan of him, even though we won't cohosts anymore, i'll always be a super fan of you. >> i like to bring in two people who have thoughts to share on this. chris cuomo and alisyn camerota. >> hi. john? there's no one i comiserate more. there is no one i will miss more at cnn. where are you going? >> you know, you guys, instead of seeing your front side, i'll see you on the back side. i'm at 9:00. >> very, very revealing. >> "new day." >> i have to tell you watching those 90 seconds of everything you meant to "early start." really shows the power of just showing up. >> of the berman. >> like woody allen. 90% of it is showing up. berman gets to sleep in another 45 minutes. he will look younger and smarter. >> impossible. he never sleeps. he never gets gray hair. he always gets better. j.b., everybody knows how much i love you. you are the smartest man in the buildi building. i wish you would get over the brady fascination that you have. enough now. five rings is enough. find a new team. come to the jets. we he need enthusiasm. >> oh, god. no. aside from that, thank you, guys, very much. if there is anyone that i like more than tom brady, besides my wife is christine. if you have to be awake at this hour, there is no one i would rather be next to than christine romans. you are the kindest person. you made being awake from the hours of 4:00 and 6:00 a.m. tolerable. barely. every day. >> thanks, john. that's really nice sdplch. >> i know. thank you. >> i'm down the hall. >> i know. i'll see you every day. >> this is not a retirement party. we'll see you at 9:00 a.m. >> thank you. >> happy valentine's day. >> we're breaking up on valentine's day. >> the back side of chris cuomo is his best side. i love that. 48 minutes past the hour. incredible rally in the stock market. who will be there to tell you? two days of record highs for the major averages and one stock is shining months after nay sayers were bruising it. we get a check on cnn money stream next. only tylenol® rapid release gels have laser drilled holes. they release medicine fast, for fast pain relief. tylenol® restore dry, depleted hair with whowhole blends by garnier.e. blending our best into new legendary olive haircare. paraben- and silicone- free formulas infused with virgin-pressed olive oil & olive leaf extracts. whole blends restores every strand. for soft and shiny hair without the weigh-down. whole blends is truly replenishing. new garnier whole blends. legendary olive. wholesome loving care blended for naturally beautiful hair. find your blend. of being there for my son's winning shot. that was it for me. that's why i'm quitting with nicorette. only nicorette mini has a patented fast dissolving formula. it starts to relieve sudden cravings fast. every great why needs a great how. a new blow for the trump administration's proposed travel ban. a federal judge in virginia granted the request to halt the ban. the ruling effects everyone in virginia and attends or work at a public university. the judge wrote maximum power does not mean absolute power. this comes on the same day the trump administration was back in seattle courtroom where the federal judge stopped the ban dealt with the case once again. let's get more from cnn's justice reporter laura jarrett. laura, give us an update. >> reporter: in another twist in the ongoing legal drama over president trump's executive order, district court judge james robart in seattle, the same judge who halted the travel ban over a week ago denied a request from the trump administration yesterday to postpone any further proceedings in his court while the ninth circuit court of appeals considers to hear the case before a larger panel of judges. this amanightmare. this means a nationwide challenge brought by washington and minnesota, will now proceed to the merits in front of judge robart in seattle. they will demand documents, e-mails and even take depositions. now sources are telling us that the trump administration is huddling up on the legal options, including possibly rewriting or modifying that executive order. some say they have to act fast here. these rulings are popping up all over the country. as you mentioned, a different federal judge in virginia put a complete halt to the executive order against virginia residents last night. so the ball is now squarely in the government's court to see what happens next, john. >> laura jarrett, this case continuing. we are waiting to see if the administration makes new executive orders on this. thank you so much. president trump's patio strategy at mar-a-lago raising questions about national security. he was eating saturday night with the japanese prime minister when they started dealing with the situation over north korea's blich ballistic missile test. he discussed the logistics of the news conference he was holding with the japanese prime minister as people looked on and snapped photos. they used cell phone flashlights drawing the ire of nancy pelosi. she wrote there is no excuse for letting international crisis play out in country club members like dinner theater. and brian fallon wrote, i wonder if director comey would consider this careless. that is a clear reference when comey said secretary clinton was careless with the classified information because of the private server. this was the discussion in front of the japanese prime minister. not discussing anything classifi classified. disaster averted at the oroville dam in california. the tallest dam in the country. 188,000 people evacuated from surrounding towns after a hole discovered in the emergency spillway. the evacuation we mains in plre for three counties. let's get a check on the cnn money stream. nearly every available measure, the dow, nasdaq and s&p and russell 2,000 closing at an all-time high. even as political turmoil grips washington, futures are down. the darling of the dow is apple. up 15% this year. trading at a record high. the biggest gainer of the 30 stocks in the dow. slumping iphone sales caused investors to see it will be down. they were wrong. and the meeting set up by ivanka trump who was in attendance. trump and prime minister trudeau discussing women in the workplace. but the question is what about naf nafta? the two will tweak their relationship. he emphasized his trade issues are with mexico and not canada. one reason trump cites is the trade balance. u.s. with an $11 billion deficit last year. some experts say that is a trade balance. $11 billion is balanced. the mexico balance has a $63 billion trade deficit. and if the president doesn't do anything drastic on trade, mexico will hit america on corn. he will introduce a bill this week to instruct mexican businesses to buy corn from brazil and argentina instead of the u.s. the first sign of a serious response to the threat against mexico. the u.s. is the world's largest producer of corn. shipments have soared since nafta was signed. many say auto and agriculture. farmers and american auto companies are the biggest benefits of nafta. >> are you from iowa? >> yes. yes. i've been on a tractor and on a combine. i know a bit about corn. this was our last "early start" together. i'll be back for two more days. you are going on vacation. >> thanks for joining us. i'm christine romans. >> i'm john berman. thank you for everything. "new day" starts now. >> this is cnn breaking news. we want to welcome viewers in the united states and around the world. this is "new day." tuesday, february 14th. 6:00 here in new york. president trump's national security adviser michael flynn resigns. he says for misleading the white house about the kpcommunication with russia before he took office. the question is who else knew what flynn was up to? >> we are learning the white house was warned last month. what did the president know? a major shakeup of day 26. trump administration. let's begin with joe johns live at the white house. joe. >> reporter: good morning. less than a month into the administration and back door communications with russia have already claimed the first casualty and there are a number of questions yet to be answered even though the general has already resigned. president trump's embattled national security adviser michael flynn stepping down monday night in a firestorm of criticism. after misleading vice president mike pence and others about conversations with the russian ambassador to the united states. an official telling cnn the justice department warned the white house month flynn in december. before trump was sworn in. despite repeated denials. a move that could broke the law. sally yates informed the trump administration prior to being fired that general flynn was vulnerable to potential blackmail. flynn conceded that he ined a verdict eventually briefed the vice president elect and others with incomplete information. despite reporting by the washington post that the sanctions were a main topic of conversation between flynn and the ambassador. >> according to two officials that we spoke to who have bee

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