tv The Eighties CNN November 13, 2022 6:00pm-7:00pm PST
i'm paula reed in washington. it's election night in america continued. right now, cnn has a projection to make in the house of representatives. in oregon's fifth congressional district, cnn can project that republican lori chavez will beat democrat jamie mccloud skinner. chavez dreamer has 57% of the vote to mccloud-skinner. mccloud-skinner has just conceded. the balance of power in the house is 212 for republicans to democrats' 204. now, republicans need to win six of the remaining seats to take control of the house. it's still early to call who will control the house of representatives. and in arizona, new vote totals were just released a short time ago. they show a tightening in one of the most watched governors' races in the country. trump fire brand kari lake has
cut into the lead held by democrat katie hobbs. let's begin this hour in arizona. kyung lah is at the maricopa county election center in phoenix, where those voting numbers were just released. kyung, what's the latest there? >> reporter: i'm looking down at my phone because we're just getting responses from the campaigns. i want to start by saying the kari lake campaign has not really said anything to reporters. and that's an unusual pattern. most nights, there has been confidence. they have given us an indication that they still think they're going to win. the latest that we're hearing is that they're going to wait. they're going to wait and see. we are seeing a statement that katie hobbs -- she is the democrat -- that she has just posted on twitter, saying that they believe with this latest tabulation result, that katie hobbs is the unequivocal favorite to become the next governor of arizona. that's a bit of confidence, given that these numbers are
still really out there. what we saw tonight are 98,000 votes that were released by maricopa county. this is the most populous county in the state of arizona. the county says that they have about 85,000 to 95,000 votes left. that is -- those are votes that the lake campaign sees as their remaining path. those votes, they anticipate, will be in their favor. but that has not been as overwhelming in their favor as they had planned. she did manage to narrow the gap with tonight's release. it did -- it definitely favored her, versus other nights. but katie hobbs remains in the lead. she is remaining the leader in the state by 26,000 votes. and it is so narrow, that margin, paula, that it is going to be very difficult to see what happens tomorrow. it is still very, very early to call, too early to call, as
these ballots continue to be counted here in maricopa county. paula? >> kyung lah, tracking the vote in arizona, as the nation watches. thank you so much. now to the senate. even though democrats will keep control, republicans are due to hold their party leadership elections this week. but florida senator rick scott is calling for a delay of game. >> what is our plan? what are we running on? what do we stand for? what are we hell bent to get done? you know, there's no plan to do that. the leadership in the republican senate says, you cannot have a plan. we're just going to run against how bad the democrats are. and actually then they cave in to the democrats. >> do you want the job? >> well, a lot of people have called me to see if i'll run. here's my focus. we've still got to win georgia. i'm not going to take anything off the table. but my job right now is to do anything i can to help herschel with. >> cnn's jeff zeleny back with
me. all right. jeff, could rick scott have the votes to challenge mcconnell? how do you see this battle playing out? >> in a word, no. rick scott is coming off of one of the most disappointing and some would even say disastrous times as the chair of the national republican senatorial committee. rick scott is not going to be the leader of the senate republicans. there's no question. now, it is an open question what the timeline of this is. senator lindsey graham said he thinks the leadership elections should be put off until after that georgia runoff. so, the timing of this is still an open question. mitch mcconnell, the republican leader, certainly has the support of the majority of his conference. at least it seems like that right now. it would be hard pressed to see who would step forward to challenge him. take a listen to what senators bob cassidy and -- had to say about mitch mcconnell. >> the great wrestling champion rick flare used to say, to be
the man, you've got to beat the man. so, i support senator mcconnell. >> going forward, mitch will be our leader. but that is not to say we're not going have a necessary debate about ideas. and i think it's very, again, one more time, important for us to explain to the american voter why republicans have a better vision for the future of our country. >> look, senate republicans here were planning to win the senate. i mean, they thought they would. senator rick scott was predicting some 52 or more seats. that obviously did not happen. so, i still expect the leadership elections to happen this week. again, it could potentially be pushed back. but it's very difficult, based on all the republicans we're talking to, to envision a scenario where mitch mcconnell would no longer be the senate republican leader. it's just hard to imagine. he controls his conference. they may add names to the ranks of leaders. i do expect that to happen. but so unlikely for a rick scott
or someone to challenge mitch mcconnell, paula. >> all right. jeff zeleny, thank you so much for that reporting. >> sure. a republican split several seats in new york, including the fourth congressional district on long island. now, cnn projecting winner republican councilman anthony diaz beat democratic charger laura gillan. congressman-elect anthony dec deesposito joins us now. >> thank you very much. i think the way we flipped this seat is we stuck to the issues, the issues that mattered most to the people of the fourth congressional district. which time and time again, whether it was through polls, whether it was through talking to them, whether it was meeting neighbors, it was things that affect their pocket, cost of living action inflation, and of course crime. it's something that's mattered on long island and nassau county in new york for the last couple
of years. the democrats failed cash less bail reforms. even as the democrats try to veer us off track, we stayed laser focused on the things that really mattered to the people of this district. and it appealed to not only republicans and conservatives. but it appealed to moderate democrats and independents. >> you also think the republican candidate for governor, lee zeldin, in a tweet saying that he inspired and energized and he spoke from the heart. even though he lost his governor's race, how did he factor into the gop wins in new york? >> so, congressman lee zeldin ran an excellent race. he was full of heart, full of vigor. and like i said in my tweet, he energized not only republicans and conservatives. but he energized people of long island and new york state who were sick of one party rule in washington and albany. there is no doubt -- listen, we all helped each other on this ballot.
but congressman lee zeldin and the race that he ran helped candidates down ballot throughout new york state. >> you also linked to a news story about why kevin mccarthy should thank lee zeldin. i want to ask you, will you support mccarthy's leadership if republicans get that house majority? >> i will. i will support mccarthy for speaker of the house. >> all right. so, new york has long been considered a pretty safely blue state. trump lost the state by 23 points in 2020. did your election and the close call for the governor's race really force democrats to pay more attention? do you think that they will now have to put more resources and more attention on the state? >> well, i don't know specifically about the state on a whole. but i know that my district was a seat that biden won by 15 points. when i first got into the race, people said i was crazy. i was coming from the town i had a comfortable seat, one i won with re-election in 2020 with
70% of the vote. and people were upset. people were tired of the same old, same old. and it was good to see people come out, people vote. and i think that our message really resonated with people across the aisle and across our district. >> not only will you work across the aisle. people are sick of the same old, same old. it seems voters are telling everyone they want things to get done that can help them. so, how will you work across the aisle? >> so, i always lean back to my days as a new york city detective. i worked with teams of people. i sat in a car with people from different economic backgrounds, different religions, different color skin, certainly different political ideologies. and my life depended on them, their life depended on me. and we worked together to protect and serve the communities we swore to. and i'm going to bring that same
mentality i brought to the police department and the same mentality i brought to the board to deliver for the residents in the town i represent. nassau county is a community and a county that democrats outnumber republicans by a significant margin. and there is no way that you can govern far to the right or far to the left and think that you're going to be recollected. i've heard from people that are democrats, life long democrats, that they feel they've lost their party. these are the moderates. and i think we need to govern as such. i'm willing to reach across the aisle as long as it delivers for the people of long island and the people of nassau county. >> well, former president, as you may have heard, is expected to announce another run for the white house on tuesday, according to his advisers. will you support him in that run? >> my focus right now is on getting to washington and taking office on january 3rd. and until anyone announces for president, i'll make my
decisions then. >> based on that answer, you're ready for washington. congressman-elect, thank you and good luck. >> thank you so much. and as the results continue to roll in, we're seeing just how historic this midterm election actually was. we're breaking it all down, as "election night in america" continues. "give a gift that means a lot without spending a lot. shop early and save, only at kay" ♪
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so, what went wrong for republicans? cnn's senior data reporter, harry enten, joins us to run the numbers. harry, the president's party, as we know, usually loses a lot of seats in the midterms. so, what happened here? >> i mean, this is a historic, historic midterm. you know, i ran the numbers on this. and you look at the governorships that the democrats had a net gain. you look at there's no net loss in senate seats. it's probably going to be they lose fewer than ten house seats. if all of those hold true, that will be the first time since 1934 in a midterm when that happened. if you spoken to me a week ago, i would have thought they might have been in for a historic loss in some of these categories. instead, it was the exact opposite. this is a historically good midterm for the president's party and democrats in this case. >> harry, the economy was the most important issue to a lot of voters. but it wasn't the only big
issue. what else were voters thinking about as they walked into the voting booth? >> number two on your list, abortion. 27%. we're dealing with once in a generation inflation. i think a lot of folks like me thought that would result in the good midterm for the opposition party. when roe v. wade got overturned in june, it kind of flipped things around. there was some thought in our mind, analysts like myself, that it wasn't going to be nearly as important to voters as it ended up being. while voters who chose inflation went overwhelmingly for republicans, voters who went for abortion ultimately cancelled them out. >> does this turn into a referendum on president joe biden and former president donald trump? >> you know, normally midterms are referendums about the party in power. but i don't recall a former president being this involved in the day-to-day politics as donald trump. and you can see that more voters
had a favorable opinion of biden than trump. and amongst that neither category, that 18%, that bloc of voters basically split their votes fairly equally. they only slightly went for republicans over democrats. trump being in the picture was not good for republicans this midterm. >> you make an important point. it's unusual for a former president to be so involved the in a midterm like this. let's talk about extremism. how did that play into this midterm election? >> yeah, i mean, look, we have been talking about in the lead-up to the midterm that the gop fielded some senate candidates, that the voters didn't necessarily think were up to par. and part of that came to extremism. if you look in our exit polls and basically the competitive races or the races we thought would be competitive pre-election, in six of the seven races, the gop candidate was viewed as more extreme than the democratic senate candidate.
i think this came down to candidate quality. and i think the republicans, at least in the minds of voters, were lacking in that regard. >> and of course election deniers didn't do very well. how bad were their results? >> well, you know, you can look at the gubernatorial races, right? and it's one thing if you nominate an election denier in a very deep red state. but republicans decided to nominate them in a number of swing states and in states that biden won but currently have gop governors. four of the five have already been projected to lose. the only one that has not been projected to lose yet is kari lake. and obviously she's still trailing at point. so, to me, it's pretty clear that election denialism was not something that voters liked. and they punished republicans at the ballot box, as this slide so clearly shows. >> harry enten, thanks so much for helping us break it down. fascinating, fascinating. >> thank you. and as we await new vote
counts that could decide the balance of power in congress, democrats are celebrating control of the senate, even before the results of december's georgia runoff. next, we'll take a look at what two more years of control of the chamber could mean for the party's priorities. this is "election night in america continued." give the gift of s shine. ♪ only at zales, the diamond store. there's a different way to treat hiv. it's every-other-month, injectable cabenuva. for adults who are undetectable, cabenuva is the only complete, long-acting hiv treatment you can get evy other month. cabenuva helps keep me undetectable. it two injections, given by my healthcare provider, every other month. it's one less thing to think about while traveling. hiv pills aren't on my mind. a quick change in my plans is no big deal. don't receive cabenuva if you're allergic to its ingredients or taking certain medicines, which may interact with cabenuva. serious side effects include allergic reactions post-injection reactions,
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as democrats claim continued control of the senate, it's a boost of president biden's ability to continue to shape the judiciary. now, former chief adviser to president obama, david axelrod tweeted, president biden has had 84 judiciary appointments confirmed so far. and two more years gives him the opportunity to expand that imprint. our political panel is back to discuss this. laura, senate democrats have two more years to confirm more liberal, more diverse judges, without the threat of republican obstruction. so, how important is that for a president? because really the judiciary is one of your most lasting legacies. >> it is. it's huge for president biden, especially coming after president trump, with the help of mitch mcconnell, really getting through a lot of judicial nominees and clearly reshaping the supreme court. now, of course there's no guarantee that a seat on the supreme court is going to come
up in biden's final two years, but a big piece of his agenda is getting a lot of those judicial nominees through. and they have been moving at a very fast clip even in these first two years of his administration, knowing how key it is to a president's lasting legacy. >> it is one of former president trump's -- really one of his biggest legacies, is how he was able to reshape not only the supreme court but the federal judiciary writ large with help from leader mcconnell. he was ai believe to confirm 234 judges in addition to the three supreme court justices. he's even taken credit for overturning roe v. wade. so, is there any way here that biden has a chance to mitigate some of what trump and mcconnell were able to do in the judiciary? >> we'll have to see how disciplined democrats are about this. we know that this really has been the singular focus of mcconnell for a long time. it's arguably why he put up with trump for as long as he did,
because there was the ability there to remake the federal judiciary. i think democrats have become hip to this game now. and our understanding, especially in the wake of roe being overturned, the significance in specifically organizing in this space, building a bench, right, of judges, of federal judges. so, if democrats ultimately end up losing the house, there will be a lot of time, i think, to focus on bwhat the senate can d with democratic control. and this is an area. >> that's a really good point. and how does control of the senate help the biden administration pursue its agenda? >> what it can do and what it won't have to deal with. it's two parts, right? president biden will be able to keep the people he wants around him, those executive appointees that require senate confirmation, will be able to get through senate confirmation instead of having to deal with republicans blocking it. the other thing is what he will not have to deal with, which is investigations from the senate about his son hunter, about any
number of things they said they were going to go after in the run-up to the midterm elections. now, should the house flip, they're going to have to contend with committees in the house. but not having that senate and being able to have the senate keep on pushing forward on some aspects of the agenda, that is going to be very much worth it for the white house. >> what do you make of this, mark? what does this do for the biden administration? even if they have the senate, that's better than they expected moving forward. >> i think given the fact that joe biden considers himself a senator -- i mean, he spent so much time in the u.s. senate, he'll be able to go to mitch mcconnell and have that conversation that perhaps, you know, other senators couldn't. who wasn't able to do that was barack obama because barack obama never had those relationships in the u.s. senate. kind of started as a stopping off point to become president, and he did a very successful job of that. very much joe biden is an
institutionalist. when we look at congress as a whole right now -- and this is a very dangerous thing that's happening -- is that congress is a separate branch of government, okay? it's a separate branch of government when it coms to politics as well. when you have a sitting president or former president who is trying to dictate who is going to be the leader of the house republicans or the senate republicans, it really starts to get really sticky there and really takes away a lot of the autonomy that these 100 senators have and the 435 members of congress have in the house. the bottom line is donald trump -- look, mitch mcconnell is going to take a lot of blame. kevin mccarthy is going to take a lot of blame. the blame lies at the doorstep of donald trump of why republicans did so poor in the election. >> what mccarthy was able to do when he was negotiating with bainer and mcconnell over the debt ceiling, things like that, at the time president obama was president, we're looking at a very different republican conference, particularly in the house. mccarthy is not leading even the
same blood temperature, as they say, as the conference as john bainer did. it's going to get trickier. whether it's going to be a gain or a pressure gain, that we'll have to see. it's a question of who is going to lead the republicans. do you see a greater possibility for bipartisan cooperation after these midterms? >> that's really difficult to say. i mean, if you ask president biden -- he was asked that this week. and he essentially says, watch me. you think that i can't find some bipartisan legislation. he said, watch me, and he listed off legislation he was able to pass with senate republicans, not so much with house republicans. that's the thing there. i was asking democrats today, do you think you could get a clean dreamers bill. cortez masto, who just won her senate race in nevada, was starting to talk about immigration again. i don't know if there is room for that if republicans take the
house. there could be republicans in the senate who might be interested in that. whether or not there's ten or nine, depending on the make-up of the senate, is another question. i think you will see president biden try it, try to find legislation he think work on republicans with. it's a big question whether or not house republicans even want to entertain it as they head into '24. >> panel, thank you so much to all of you. several key congressional races are yet to be called, as the balance of power in the house remains up for grabs. so, could democrats really still have a chance at holding the chamber? and who should lead the party going forward? we'll ask the congress who won his re-election race next. this is "election night in america continued."
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it would be preposterous to hold leadership elections before the midterms are over, before georgia is done, and before we know what happened in the close swing states. >> turbulence has erupted in the house and senate ranks after the party fell short of midterm expectations. kevin mccarthy and mitch mcconnell are both now confronting challenges to their leadership from their far right. in the senate, a small vocal group of republicans are calling
to delay wednesday's leadership elections. and in the house, members of the freedom caucus are seeking concessions and threatening to withhold support from kevin mccarthy, if the party holds a razor thin majority. let's discuss this with our political panel. mia, i want to start with you. you've been in the room when these leadership conversations take place. what do you see here playing out? >> well, i think that -- yes, i've been there. and it's -- you never know what is going to happen until you -- i mean, it's not over until you walk out of the room. and even then, it's still -- there may be a chance that it still isn't over. mccarthy's going to have an issue when it comes to the house freedom caucus. and i think he's trying to get these things done and over with so that -- i hope -- so that they can start strategy and the plan for the american people because that is what was missing. i just want to make one really
quick point. the election, i believe, was reflective of the 50/50 split in america. the question is, was this a 50/50 split on policy, or was it party loyalty? and i believe because no one really -- not one side or the other -- i'm being fair here -- really articulated a plan for the american people. so, i think it's really -- democrats have to be really careful that they don't take this as a mandate to do whatever they want to do. yes, the american people have told us to do whatever they want. i think they want the members of congress to work together to figure out a way to fix our economic problems, our inflation problems, our problems with labor issues. there's a list that you can go on and on about. mccarthy's got an uphill battle. he's got to figure it out.
clean the house, clean his house, and then make sure he has a strategy going forward, his plan. >> now, alice, here's one example of how the party's right flank is feeling about their leadership right now. congressman matt gaetz tweeted mcconnell, mccarthy, mcfailure. how concerned should mcconnell and mccarthy feel about their positions right now? >> gaetz is one of the republicans that's all about posturing and click baits and doing everything you can to feed red meat. if he has such a problem with mccarthy, he needs to step up and put his name in for leadership. mccarthy is in a good spot because former president trump has said he will support him and has endorsed him. the question is, how likely is that going to be to last throughout the week. we have a lot of rebel rouzers, the freedom caucus members standing up trying to get some
of their agenda approved by mccarthy, for him to move forward. it will be interesting to see how much he listens to him. there is also another brand of gop in the house. i've talked to many of them. they want to sit back and let's do a postmortem on this election. how did we get here? what happened? what fell apart? and who was the best person to move forward? at the end of the day, even though it's not a huge majority in the house that we anticipated, mccarthy did do a lot as far as fundraising for these candidates, and many of them owe him a vote of support this time around. >> many republicans are pointing the finger at former president trump. and that really complicates his plan to declare his presidency on tuesday or his candidacy for the presidency. now, putting aside feelings about the former president, is now the time to make that announcement amid this larger battle over leadership of the party? >> if you were talking about somebody that actually had the
interest of his party front and center, then, the answer would be no, this wouldn't be the time. it would be the time to reflect about what happened, about how the republican party screwed this up so much, an election and environment where they should have run the table in both the house and the senate. and they didn't. but we all know that trump is not that kind of leader, that trump is a kind of leader that focuses on himself. and frankly, i think he'll kind of look at what everyone is saying the in terms of blaming him, and he'll be like, no. i still rule this party. the majority of voters in the republican party are still my voters. and i think that is inherently the biggest challenge for the republican party right now because, like i said earlier, while so many people seem to be ready to turn the page on donald trump, it doesn't seem like, a, the elected officials in congress are ready to do that, and, b, importantly, republican
voters. and until the leaders in the republican party are able to lead the republican voters with an example about what's not just best for the party but what's best for the country and therefore those voters, these voters will continue to follow donald trump. he is putting out red meat, which is something that they love. he is continuing to talk about conspiracy theories and fraudulent elections. and they love that too. and until the republican party figures out how to stop him from doing that -- and i don't know -- no one knows right now what the imagic is doing that -- they're going to have a big challenge because i think he is going to announce. >> voters rejected election denier candidates. former president tried to reverse his election loss in 2020. as the former president, as he keeps teasing this special announcement on tuesday, do you think that maga fever -- is it breaking, or is it too soon to
tell? >> well, it's breaking with independents. of course we democrats never liked the guy. but independents -- ap vote cast said independents broke for the democrats by a margin of 31 points in arizona, 28 points in georgia, 18 points in pennsylvania. so, the independents. now, as a democrat, my party ought to take only humility out of that. they're not marrying the democrats. they're just dumping the republicans. but they're dumping them so hard they're getting a restraining order. as their election liars have lost state-wide, they've won in republican primaries for the house. "washington post" estimates that two-thirds of the entire republican conference in the house in january, in the new house, two-thirds, will be election liars, election deniers. that's a crisis. when it's an unsaleable position with independents but mandatory
position with your most committed base voters. the republicans have to break the fever. but believe me, the independents are done with the republicans and the election lies. >> everyone, thank you so much for joining us tonight. we appreciate your insights and analysis. as we watch and wait for new vote counts that could tip control of the house to republicans, house speaker nancy pelosi says in a new cnn interview that any decision to run to the leadership of the democrats depends on her family and democratic colleagues. we'll ask one of those colleagues where he stands, next.
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election night in america continues. the balance of power in the house still hinges on a few key races, and we're staying on top of all the results. and we will update you just as soon as we get them. now joining us now is congressman henry cuellar, a texas democrat, who just won re-election. congressman, first of all, congratulations on your victory. as you know, the democrats held on to the senate and still have a chance to keep the house. now, i'm sure you'll say that you expect that they will keep the house. but if they don't, what does
that mean for the party? >> well, first of all, if you look at the history the last 40 years, there's been, i think three times that the president party has done well in the midterms. and looks like this might be the fourth time we are keeping the senate. the house, this red tide or red tsunami that they've talked about didn't happen. just a little puddle. maybe a little ripple that we saw. so, what this means is that we still have a pathway to win the house. but even if we don't win it, it's going to be a slim majority, single digits. and i can tell you, whoever the republican is, they're no nancy pelosi. nancy knows how to work the different caucus, work with the progressives, the moderates like myself, and she's able to get the job done, even though it's a slim margin. i have to say i remind people what happened with the tea party
with john bainer and paul ryan. and they just couldn't get the job done unless the democrats came over and helped them. >> of course house speaker nancy pelosi has some experience with dealing with mooring factions and dissensions within her ranks. we did see the gop build momentum with latino voters. how are you able to maintain support in your district as a democrat and buck that trend? we've seen in other parts of the country, like, for example florida? >> yeah, you know, it's basically the work that you do, the brand that you develop, the delivery. i'm a congressman, but i run as the mayor. i look at the local issues, address the issues of water, broadband, transportation. that's very important. i looked at every county. i have nine counties. i outperformed every single democrat that was running state-wide.
i performed joe biden's numbers by double the amount. and that is knowing, first of all, knowing the community. knowing how to speak a little spanish is always very important. and it's a combination of things. but, again, i run like a mayor. i address the local issues. >> house speaker nancy pelosi hasn't decided whether or not she's going to run for democratic house leadership. you spoke very highly of her a moment ago, so it sounds like you would support her if she does want to take on a leadership position. >> absolutely i will. i'm waiting to see what where she might come back. i know we have a lot of young leaders like, you know, jeffrey, hakim jeffreys and other folks that are great leaders but i think all of us are waiting to see what speaker pelosi is going to do. >> would you like to see more latinos in leadership? >> you know, certainly we have
people like pete aguilar. we have other tony carnes, i hope he wins the dccc chairman. certainly, we're adding so many new hispanics in the house of representatives. of course, in the senate. we have some of the hispanics there. yes, when you look at the makeup. i think we're getting a lot more hispanics in the congress and that's the way it should be to reflect america. >> very interesting. you leaned more conservative than many democratic colleagues when it comes to issues like abortion. how do you think that will play heading into 2024? >> you know, i understand, you know, abortions are very important issue. look, i am pro-life. but i believe in the exception to rape, insincest, health of t woman and think there should be some restrictions, especially late term abortions but i don't
believe in a total ban and i'm not going to impose my religion on anybody else but i understand, you know, what the supreme court did. they did not follow precedent and even though some of those recent supreme court judges that were going through the nominations, they said they would respect the precedent and they did not respect precedent. you know, the cases that have been there in the past. >> all right. congressman, thank you so much for joining us and congratulations on your victory. >> thank you so much. good night. tonight, we're watching the impact of newly counted votes in arizona's heated governor's race. democrat katie hobbs currently leads carry lake by some 26,000 votes in our decision desk estimates there are still roughly 175,000 uncounted votes. so stick with cnn on air and online for the very latest. this is election night in america continued.
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f t ftx filed before bankruptcy yesterday and resigned the $6 billion fortune evaporated in a week. let's go to brian todd with more. >> reporter: it wasn't long ago that sam bankman freed was called the mark zuckerberg of crypto, a modern day j.p morgan but in the span of a week, the 30-year-old founder and ceo of ftx has resigned, has lost his fortune, his firm is in bankruptcy and by thursday in a twitter thread to investors and customers, he was saying quote i'm sorry, i f-ed up and should have done better. >> in someways this collapse of ftx is the lee mman brother's crypto world. >> reporter: at the peak it was worth $32 billion and had backers like tom brady. his soon to be ex-wife super model gisele and naomi and
bankman freed's network crumbled from billions to nothing in a day. the nba's miami heat had the venue renamed ftx arena last year and now that name is coming off the building. the collapse was triggered last week when serious questions were raised about the health of its finances. those questions ignited a run on the bank like crisis. >> i am suddenly rushed to withdrawal several billion worth of crypto currency in the exchange and put the ftx owner in a position where by he effectively his company ran out of money. >> reporter: back in july when he did an interview with cnn business, sam bankman freed discussed ponzi schemes. >> when you have something that is basically an empty product, which i do think is true of some
places, some assets in crypto, you know, that is something where there is certainly real crash potential. >> reporter: ftx' fall has more than a hint of irony. there was an ad during the super bowl portraying a buffoon that missed the boat on big inventions. >> i call it the wheel. >> i don't think so. what does it do? >> it rolls. >> yeah. >> reporter: at the end of the spot, david is presented with an offer. >> it's ftx, a safe and easy way to get into crypto. >> eh, i don't think so. i'm never wrong about this stuff. never. >> reporter: now, analysts are warning about the real future of the crypto currency market. >> i think that the private crypto market meaning digital coin that is not backed by a central bank is going to be in for a major correction. you've seen that. i think regulators have a great case now to say nobody should be
trading this stuff. we need a lot more rules. >> reporter: and now according to the "wall street journal", the justice department and securities and exchange commission are investigating ftx and the man ftx appointed as the new ceo is john ray iii who managed enron after its collapse in an accounting fraud scandal in 2001. brian todd, cnn, washington. >> thank you for joining me this evening. i'm paula reid. good night . i must say to you that the state of the union is not good. >> will these people, somehow, turn politics into power and make the government work. >> we are privileged to witness