>> Bill: GOOD MORNING.

I'M BILL HEMMER.

FEDERAL APPEALS COURT RULING

MOMENTS AGO THE PRESIDENT DOES

NOT HAVE PRESIDENTIAL IMMUNITY

FROM GRAND JURY INVESTIGATIONS.

THE BATTLE NOW MAY BE HEADING

TO THE U.S. SUPREME COURT.

WE HAVE LIVE TEAM FOX COVERAGE

IN A MOMENT AND WE'LL GET TO

THE JUSTICE DEPARTMENT LIVE.

WE'LL BEGIN NOW AT THE WHITE

HOUSE WITH CHIEF WHITE HOUSE

CORRESPONDENT JOHN ROBERTS ON

THE NORTH LAWN.

GOOD MORNING.

>> GOOD MORNING.

A CASE THAT'S BEEN GOING ON FOR

SOME TIME NOW.

A FEDERAL DISTRICT JUDGE IN NEW

YORK CITY WHO RULED THAT THE

PRESIDENT HAD TO HAND OVER AT

LEAST NOT THE PRESIDENT BUT THE

PRESIDENT'S ACCOUNTING COMPANY

HAD TO HAND OVER EIGHT YEARS OF

TAX RETURNS TO THE MANHATTAN

DISTRICT ATTORNEY CYRUS VANS

JUNIOR.

THE PRESIDENT'S ATTORNEYS

APPEALED IT TO THE SECOND COURT

OF APPEALS HANDLING MANHATTAN.

THE SECOND CIRCUIT HAS NOW COME

DOWN WITH A RULING UPHOLDING

THE DISTRICT COURT JUDGE'S

DECISION THAT THE PRESIDENT'S

ACCOUNTING FIRM HAS TO TURN

OVER THOSE TAX RETURNS.

IN THE OPINION THE JUDGES MAKE

A DISTINCT BETWEEN A CRIMINAL

PROCEEDING AND A GRAND JURY

INVESTIGATION.

DON'T FORGET, THIS WAS A

SUBPOENA THAT WAS ISSUED BY A

GRAND JURY THAT WAS IMPANELED

BY THE MANHATTAN DISTRICT

ATTORNEY.

THE PANEL SAYING WE HOLD

HOWEVER THAT ANY PRESIDENTIAL

IMMUNITY FROM STATE CRIMINAL

PROCESS DOES NOT EXTEND TO

INVESTIGATIVE STEPS LIKE THE

GRAND JURY SUBPOENA AT ISSUE

HERE.

WE ACCORDINGLY AFFIRM THE

DISTRICT COURT'S DECISION ON

THE IMMUNITY QUESTION.

THAT MEANS THE PRESIDENT IS NOT

IMMUNE FROM THIS WHICH WE

CONSTRUE HAS AN ORDER AND

REMAND FOR FURTHER PROCEEDINGS.

IT DOESN'T MEAN THE WHITE HOUSE

AND PRESIDENT HAVE LOST THE

FINAL BATTLE HERE.

AGAIN, THIS WAS DECIDED BY A

THREE-JUDGE PANEL WHICH

INCLUDED THE CHIEF JUDGE AND

TWO CIRCUIT JUDGES.

THE PRESIDENT HAS A COUPLE OF

OPTIONS.

HIS ATTORNEYS CAN APPEAL TO THE

SECOND CIRCUIT FOR WHAT IS

CALLED A HEARING WHERE ALL THE

JUDGES IN THE SECOND CIRCUIT

WOULD REHEAR THIS CASE AND

DECIDE THE CASE, OR THEY COULD

TAKE IT TO THE SUPREME COURT.

WE'RE STILL AWAITING A DECISION

ON WHAT THEY'LL DO ABOUT A

SIMILAR RULING IN THE

WASHINGTON, D.C. CIRCUIT COURT

OF APPEALS, A THREE-JUDGE PANEL

DETERMINED THE PRESIDENT DID

HAVE TO HAND OVER HIS TAX

RETURNS.

WE DON'T KNOW IF THEY ARE GOING

WITH THAT OR THE SUPREME COURT.

THEY MAY BE GATHERING ALL OF

THIS TOGETHER AND TAKE IT RIGHT

TO THE SUPREME COURT.

I EXPECT TO HEAR FROM THE

PRESIDENT'S ATTORNEY JAY

SEKULOW IN A FEW MINUTES AFTER

HE GOES THROUGH THE RATHER

LENGTHY DECISION.

THE BOTTOM LINE HERE.

THE SECOND CIRCUIT COURT OF

APPEALS UPHOLDING A FEDERAL

DISTRICT COURT JUDGE IN

MANHATTAN'S OPINION THAT THE

PRESIDENT'S ACCOUNTING FIRM HAS

TO TURN OVER THOSE EIGHT YEARS

OF TAX RETURNS TO THE MANHATTAN

DISTRICT ATTORNEY FOR

INVESTIGATIVE PURPOSES.

WE SHOULD POINT OUT THIS MEANS

THAT THOSE TAX RETURNS COULD BE

USED TO DEVELOP INVESTIGATIONS.

THEY CAN'T MAKE THEM PUBLIC AT

LEAST NOT YET.

MAYBE IF THEY DO DEVELOP SOME

SORT OF INVESTIGATIVE MATERIAL

THAT LEADS TO A SUBPOENA OR

INDICTMENT THEN SOME OF THAT

INFORMATION MAY COME OUT.

WE'RE STILL A LONG WAY FROM

THAT.