[Wolf Blitzer, Cnn Anchor:] We're following breaking news. Stepping down. The woman in charge of the Democratic Convention leaving her role after e-mails surfaced suggesting a plot against Bernie Sanders. But Debbie Wasserman Schultz isn't going right away. She'll be here this week. Exploded accusations as Donald Trump taunts Democrats over the email firestorm. The Clinton campaign now blaming the Russians for the leak in a sinister effort to actually help Donald Trump. And hitting Trump. New attacks from President Obama against the Republican nominee. Why he says Trump isn't prepared to be commander in chief. I'm Wolf Blitzer. We want to welcome our viewers in the United States and around the world for CNN's live special coverage from Philadelphia. You're in THE SITUATION ROOM.
[Blitzer:] Happening right now: it's the last thing the Democratic Party wants on this, the eve of what's supposed to be a triumphant and solidifying and unifying national convention. Confusion and uncertainty and an upset in the highest level of party leadership. Long-time chair of the Democratic National Committee, Congresswoman Debbie Wasserman Schultz, she is out, resigning that position, not immediately, but as soon as this convention wraps up here in Philadelphia Thursday night. Its fallout from a mountain of leaked e- mails that appears to show the committee and the chair showing bias toward Hillary Clinton over Senator Bernie Sanders. CNN's chief political correspondent Dana Bash is on the convention at the site of the convention, inside for us. Dana, a Democratic source says Wasserman Schultz spoke to both Hillary Clinton and President Obama before she announced her resignation. What else are you hearing?
[Dana Bash, Cnn Chief Political Correspondent:] Well, I'm told by somebody who is close to the situation that the president himself did call her to thank her for her service, for her time leading the Democratic National Committee, really, during his tenure in the White House. But that leading up to that, there was a scramble of full- court press. This is according to a source I'm talking to, Jeff Zeleny, John McCain, that they wanted it do before the gavel went down tomorrow to actually start the proceedings at the convention, on the floor behind me. And when I say "they", my understanding is it was the Clinton team as you can imagine, the Sanders team and even the White House, that it was pretty much universal, that the Democrats did not want this cloud over their convention for lots of reasons, primarily because it completely feeds into the notion that Bernie Sanders supporters came out in droves for him about, which is, the system is rigged, that Washington is broken and the whole idea on the floor here, if you're Hillary Clinton, is you want the Sanders people who are coming to get behind you, and this doesn't help.
[Blitzer:] As you know, Debbie Wasserman Schultz, she still may open the convention, close the convention, hit that gavel. What's likely to happen if she does make even a brief appearance like that?
[Bash:] Well, we don't know. We do know from talking to sources around this that Debbie Wasserman Schultz feels she has worked incredibly hard for the party for many years now. She worked up to this moment at this convention, and that she wants her due. She wants her chance to speak to the delegates. To answer your question, obviously the concern, not just from people who are aligned with Hillary Clinton and Bernie Sanders, but people who, like Debbie Wasserman Schultz, is they want her to be in a position of concern out there. Let me just read something very briefly, the end of Bernie Sanders' statement on this. And this kind of, again, illustrates why this is so tough for her and for the party. He said, "The party's leadership must always remain impartial in a presidential nominating process, something which did not occur in the 2016 race." For delegates coming here who voted and worked so hard for Bernie Sanders, to see that kind of statement coming from their candidate who just a few weeks ago stood with Hillary Clinton and said, "It's time to get behind our nominee," that is going to make things very difficult for them, because we've already seen, and I'm sure you have, wolf, lots of Bernie Sanders signs and buttons and people still outwardly supporting Sanders in and around the streets of Philadelphia. And so, it's not so easy for them to turn that off. One other thing I wanted to say to you is that the Trump campaign is stoking it is stoking the notion of the system being rigged. Paul Manafort, the campaign chair of Donald Trump, put out a statement just simply saying just that, that this proves not just the DNC is rigged, but also Hillary Clinton. And he said that this proves her e-mails are a problem and that she should get out of the race Wolf.
[Blitzer:] Let's not forget, Bernie Sanders got 13 of the votes in the caucuses. And he's got a lot of supporters here. I just arrived this morning. You see a lot of Bernie Sanders supporters out on the street and a lot of them will be inside the convention as well, at the Wells Fargo Center. All right. Dana, thanks very much. I want to bring in our panel to weigh in on all of this and more. Joining us, our senior Washington correspondent Jeff Zeleny, our CNN political commentator, and Democratic strategist Hillary Rosen, also with us, our senior political reporter, Nia-Malika Henderson, and the executive editor of CNN Politics, Mark Preston. Jeff, you've done a lot of excellent reporting on all of this. There are words she may gavel that convention to order tomorrow, but you're hearing there's possibility she may also speak?
[Jeff Zeleny, Cnn Senior Washington Correspondent:] Yes, I'm told she is going to speak, actually. Probably tomorrow, I'm told that is not set exactly, but at the beginning of the convention which would make sense. She wouldn't want to wait until the end of the week to speak. I'm told it will be a very short speech, potentially three to five minutes or so, and really wants to address a lot of the delegates and Democrats in the room. I mean, as Dana was just saying, she has been working towards this convention. So, the interesting thing is there was a period of time this afternoon where it seemed the Clinton campaign did not want her to speak, because they, A, one person said they wanted to save her any embarrassment, and really avoid any type of Cleveland situation. But it seems that either, A, that was wrong, or B, that was changed. She is likely to speak. And I'm told Bernie Sanders actually offered assurances that their supporters and delegates would be respectful of her if she speaks tomorrow afternoon or early evening.
[Blitzer:] Hillary, you're plugged in with these Democrats. What are you hearing?
[Hilary Rosen, Cnn Political Analyst:] I can tell you, with all due respect to my bestie, Dana, that report is wrong.
[Blitzer:] Which report?
[Rosen:] That Debbie was somehow forced out. She was not. There was she woke up this morning, met with the Clinton campaign, saw that the story wasn't going away, affirmatively told them that she had this decision, that she wanted to step down, but that she also wanted to see through the work she was doing at the convention. There was no opposition from the campaign on that. There had not been a back and forth today about whether or not she would speak or wouldn't speak. She was always planning on speaking tomorrow, gaveling in the convention on and closing it on Thursday. And she will have things to say to the delegates. There is a lot at stake for Democrats around the country.
[Blitzer:] You know, a lot of Bernie Sanders supporters on the floor won't be happy if she speaks, and they'll start booing her.
[Rosen:] You know, here's the thing: Democrats like Debbie Wasserman Schultz. She has traveled this country for the last five and a half years for this president. She will get many more cheers on the floor tomorrow than she will get boos. There may be a few assorted boos, but I think it's true that the Sanders campaign is not going to put out any sort of word to trash her down. She will get a lot of cheers tomorrow. This panel, this audience, is going to be surprised if that's what you think.
[Zeleny:] Another reporting that Dana mentioned is also things that all of us have heard. So, you were saying today, I know you spent the day with her, that she was not in any way reluctant to step down, that that was her decision from this morning.
[Rosen:] So, there was significant discussion. But the discussion that she always had was, does me stepping down do what I would have wanted to accomplish? Which doesn't make this story go away, because Debbie Wasserman Schultz doesn't want to be that story. Hillary Clinton is the story this week. This campaign is about demonstrating for the country that Hillary Clinton is the right alternative to Donald Trump. And I think she thoughtfully came to the conclusion that this story was not going away and the best thing for her to do would be to assure people that after this convention, she would step down.
[Blitzer:] Nia, what are you hearing?
[Nia-malika Henderson, Cnn Senior Political Reporter:] Well, similar, this I think debate these two, in some ways mirrors the debate that's going on outside in terms of Bernie Sanders supporters. They want her to step down now. They don't want to necessarily see her in that convention gaveling in, and they do expect some boos. I do think this idea of whether or not this story goes away is of real concern to a lot of Democrats. Her there in the convention hall gaveling in her speaking, that gives this more kind of legs. They want this to go away, a lot of Democrats do, and move forward. I mean, you imagine by the end of the day tomorrow, once they have Bernie Sanders speaking, Elizabeth Warren speaking, Michelle Obama is speaking tomorrow, you can imagine that there will be a different story come Tuesday morning and the Debbie Wasserman Schultz story will be put behind them. But again, you've got this is an opening for Trump, also to say, look at the Democratic Party. It is rigged in Hillary Clinton's favor. He's been tweeting about that for some time.
[Blitzer:] He tweeted he tweeted this, Mark. This is Donald Trump. "I always said that Debbie Wasserman Schultz was overrated. The Dems convention is cracking and Bernie is exhausted. No energy left."
[Mark Preston, Cnn Politics Executive Editor:] You know, I could probably go back and find a statement from Donald Trump four weeks ago where he was trashing Reince Priebus. Unfortunately, for Reince Priebus, in some respects, Debbie Wasserman Schultz, still a little bit different, that they've become punching bags in many ways. Reince Priebus with his own candidate. Debbie Wasserman Schultz, with all due respect -I mean, the Sanders campaign has been complaining about her for over a year. There was always bad blood. We didn't see anything in her statement where she apologized for the acts that had happened. If she was going to step down, because I was talking to the Sanders folks all day today, why did it take until late this afternoon for it to happen? It really bubbled up really fast. It's unfortunate it's come to this because she has been working, you know, towards this goal. But for her to go on stage tomorrow, as we expect her to do, and if she does get booed, I was told by a senior Sanders person, we can't control our delegates. We're going to try, but we can't control them. She's running for reelection, and, you know, I mean, that becomes a television ad.
[Blitzer:] Those e-mails were very, very, very embarrassing. When you have top officials of the DNC, and she's the chair, saying, maybe you should raise questions about Bernie Sanders who is Jewish, whether he believes in God. In some states like West Virginia or Kentucky or Tennessee, that will resonate with voters out there. When you hear top officials of the
[Dnc -- Rosen:] She made sure that he apologized for that email and there was an apology.
[Blitzer:] But is an apology enough? Should these people go?
[Rosen:] Well, look, you know, you could you could argue that he should go, but she is now taking responsibility. She is leaving. She's saying, you know, the staffer who worked for me apologized. I'm going to leave. And, you know, this notion that somehow the Bernie Sanders people still need more red meat, I think we're going to see a lot less action on this than people believe. Look, we have come into this convention now. We have a unified rules program. We have where we're going to have a unity reform commission. There is a unity on the platform. The may be some additional floor amendments there. But for the first time, there is a huge amount of togetherness here on this platform. I just do not think that the Sanders first of all, there is no one Sanders view, right? So, we saw the senator today say, you know, she deserves thanks for what she did and we're moving on.
[Blitzer:] You spent time with her today. How is she holding up?
[Rosen:] You know, look, she's got her big girl pants on. You know, she understands this is a rough and tumble, and I think she believes that they ran despite their personal feelings, which everybody knew, a neutral process going forward in this campaign. Both sides got mad at her as these emails will a close reading of these e-mails will show. The Clinton campaign was mad at her sometimes, the Sanders campaign was mad at her sometimes. That's how you know you've done a good job as
[Blitzer:] And she's made it clear. She may be resigning as chair of the DNC, but she's going to continue to seek reelection in her congressional seat.
[Rosen:] Very important.
[Blitzer:] Thanks very much. We have a reminder. Don't miss CNN's live coverage of the Democratic National Convention. Our live special coverage will begin tomorrow at 4:00 p.m. Eastern. Up next, President Obama aiming new attacks squarely at Donald Trump. Is this a preview o what we're likely to see when the president takes the stage at the convention this week? We're back live in Philadelphia in just a moment. With her team now in place, Hillary Clinton and Tim Kaine, they're more clearly laying out their strategy for hitting back at Donald Trump.
[Interviewer:] He calls you crooked Hillary. What do you call him?
[Hillary Clinton , Presumptive Presidential Nominee:] I don't call him anything. And I'm not going to engage in that kind of insults fest that he seems to thrive on. So, whatever he says about me, he's perfectly free to use up his own air time and his own space to do. I'm going to talk about what he's done, how he has hurt people in business time after time after time.
[Sen. Tim Kaine , Presumptive Vice Presidential Nominee:] She's done a good job of letting the water go off her back on this. That's not the way I feel. When I see this "crooked Hillary'or I see the "lock her up," it's just ridiculous. It is ridiculous. It is beneath the character of the kind of dialogue we should have because we have real serious problems to solve, and most of us stopped the name-calling thing about fifth grade.
[Blitzer:] I want to bring in our CNN political commentators. Bill Press is with us, Hilary Rosen, S.E. Cupp. Also, and former the governor of South Carolina, Donald Trump supporter, Andre Bauer. To all of you, thanks very much for joining us. Andre, you heard that exchange over there between the Democratic president and vice presidential presumptive nominees. Your reaction as a Donald Trump supporter when they say he's acting like a fifth grade.
[Andre Bauer, Former Lt. Governor, South Carolina:] Well, I actually would take her advice in the fact that I think he ought to stay on message and excite people to come out and vote for him. I don't want him to say I'm going out to vote for somebody other than Hillary. I want him to be excited about the future of America and the message and what he can do to improve their lives. So, I hope he'll stay on message and he talk about his vision for making America better.
[Blitzer:] Is this the good cop, S.E., bad cop that Hillary Clinton would be more level-headed, even, if you will, but Tim Kaine would be the attack dog?
[S.e. Cupp, Cnn Political Commentator:] Well, it's an amazing reversal of the way I think most people see Tim Kaine who is incredibly kind, nice and polite. And Hillary, who I think a lot of people would think has gotten dirty, can get dirty, can get down in the mud and get her hands dirty. But it's a good look for that team, for her to sort of rise above and say, I'm focused on what he's done that's hurt people and what I'm going to do to help people. And for Tim Kaine, who is a credible voice for a lot of Democrats to say, well, I'll take on that fight. He has nothing to lose by doing that, and I think he can do a very effective job at that. But everything you have heard from Democrats since the second he was announced was what a nice guy he is. So, it will be interesting to see how he changes in that tone.
[Blitzer:] Hilary Rosen, Hillary Clinton has a tough mission right now, because you know Donald Trump. When he is hit, he hits you right back. He likes to hit you back ten times as hard as you would. We saw all that during the Republican primaries. So, what's going to unfold in the coming weeks and months?
[Rosen:] You know, here, though, is the first thing that's going to unfold. We are going to see a convention week where Hillary Clinton and Democrats are going to talk much more about her positive vision for this country than about Donald Trump. Last week, the only thing everybody in the room could agree on was that they didn't like Hillary Clinton. They didn't all agree that they liked Donald Trump. You're going to see Democrats in a very different place. First of all, get positive. This is her chance to introduce herself anew to America with the convention starting this week. Second of all, I think S.E. is exactly right, which is now that there is somebody else campaigning with Hillary who will have a microphone almost as big as hers, or almost as big as hers, couple that with the president of the United States who is now willing to engage, Hillary can be much more about her vision. She can say, I'm not going to go there. I'm not going into the insults fest. Let these other guys do it.
[Blitzer:] Let me play a clip for you, Bill. This is President Obama speaking on CBS earlier today.
[Barack Obama, President Of The United States:] This is somebody who knows as much about domestic and foreign policy as anybody, is tough as nails, is motivated by what's best for America and ordinary people, understands that in this democracy that we have, things don't always happen as fast as we'd like, and it requires compromise and grinding it out. She's not always flashy, and there are better speechmakers. But she knows her stuff.
[Blitzer:] All right. You're chuckling, Bill Press.
[Bill Press, Cnn Political Commentator:] I was chuckling at the speechmaker comment. But first, I've got to say, just quickly, what a contrast watching Hillary Clinton and Tim Kaine on "60 Minutes" with watching Donald Trump and Mike Pence last week where Pence barely got a word in, and Donald Trump is on and on and on. It showed that they were a really good team, making of a good team. The president's comments, look, this is personal for President Obama. I mean, other presidents might sit on the sideline, but he feels he's done a really good job, worked as hard as he can for the last eight years. He really cares about what happens to the country and who continues that flow. He's been chomping at the bit to get out and campaign for Hillary Clinton, but it's not just that he sees Hillary Clinton as the best one to continue his legacy and complete his programs. But he sees it. Donald Trump would just be bad for the country not bad for his legacy. Bad for the country. And he just he'll be doing more I think than any incumbent president has ever done to make sure that does not happen.
[Blitzer:] Andre, if President Obama can help Hillary Clinton and Tim Kaine recreate that Obama coalition that got him reelected twice, Donald Trump is going to be in deep trouble.
[Bauer:] Well, this is the same guy that in 2008 said she'll say anything and do nothing. So, I'm not sure how great he is to be as a cheerleader for her, because again, when he was fighting with her, he said some not so nice things about her and she did about him. So, I'm sure he's going to be working as hard as he can for her, but part of that is a convoluted message.
[Rosen:] Well, he worked side by side with her for five years after that, so he really does know her. And I think Bill right. But, you know, but there is no question that the primary sell here has to be Hillary Clinton's, and she knows that. This is her week to prove that.
[Bauer:] She started the week poorly, though.
[Blitzer:] It's awkward.
[Cupp:] Can I just say something about Tim Kaine as a pick? I think he's the right pick for her, but I think it just shows how incredibly political she is. She needed progressives in the primary. She knows she doesn't need them in the general. Tim Kaine is the exact right pick for her in the general election rather than another progressive, and I know Bernie Sanders fans and progressives are upset about that. But she is political above everything else. It's something I wish Republicans would remember sometimes, that winning is how you get your ideas and your principles into legislation and action, and that winning has to be a priority. She clearly showed that winning is a priority.
[Blitzer:] Bill Press, you're a Bernie Sanders supporter. Do you agree that she needs to move to the center now, and that's why she picked a more moderate Democrat like Tim Kaine instead of going with, let's say an Elizabeth Warren, that the progressives would have loved?
[Press:] I think that's why she said. Let me just say, I am underwhelmed by Tim Kaine's selection. He was not certainly my first choice. But I know why she did it. It's a very safe choice for her. Again, I'd prefer to have a bolder choice. But Tim Kaine is a good man. He brings a lot to the ticket. And, certainly, when you compare the two of them against Donald Trump and Mike Pence, for progressives like me, there is no place else to go. It's unheard of. What, Jill Stein or no.
[Cupp:] I can see them on a bumper sticker, "No place else to go." That's real inspiring, Bill.
[Press:] I'm just saying this is a safe choice for her, right?
[Cupp:] Yes.
[Press:] And the idea that Tim Kaine people like me are going to be so upset about Tim Kaine, we're going to go for Jill Stein or for Gary Johnson, it's crazy.
[Rosen:] This was a government choice. This wasn't a politics choice. There might have been other ways to energize a base, to get out votes, but she clearly made this as a governing choice.
[Blitzer:] Well, politics were important. Virginia is a key battleground state and he can help her in Virginia. He speaks Spanish. He can help her in Florida. So, politics
[Cupp:] He can help her win that's why she goes
[Rosen:] I'm not saying politics played no part of it. But, really, what she was focused on, and you could see even by that good chemistry there, was who am I going to be happy seeing every morning coming into the Oval Office? Well, look, Elizabeth Warren is a friend of mine, and I think she would make a great vice president. But as a woman, the sexism that Hillary Clinton has already endured, honestly, I think that might have been too much straw on that camel's back to run two women.
[Cupp:] I think they probably could have handled.
[Press:] I think America is ready for two women in the ticket. But
[Rosen:] I understand why that was not a safe choice.
[Blitzer:] We've had two men on the ticket for a long time.
[Rosen:] It's too safe to say. Now, everybody could say, sure, we would have been fine with two women. But you know what?
[Press:] I'll take my job
[Rosen:] I didn't have that experience.
[Blitzer:] It didn't happen this time. All right, guys. Thank you very much. Up next, amid all the DNC drama, some good news for Hillary Clinton. A high-profile endorsement. We're going to tell you who has come forward. Plus, why the race between Donald Trump and Hillary Clinton maybe a lot closer than ever. John King is standing by. He'll break down the numbers we're getting right now at the magic wall. You're watching our live special coverage ahead of the DNC.