Court hears appeal in Trump bank subpoenas case

NEW YORK (AP) - A federal appeals court in New York indicated Friday that it will take a hard look at the legality of congressional subpoenas seeking President Donald Trump's banking records after a lawyer for the president argued the request was too broad.

Three judges on the 2nd U.S. Circuit Court of Appeals peppered lawyers for the president and Congress at a hearing on Trump's appeal of a lower court ruling that the subpoenas serve a legitimate legislative purpose and are valid.

The most contentious exchange in a 90-minute hearing came when judges confronted lawyers for the recipients of the subpoenas - Deutsche Bank and Capital One - and asked whether they have Trump's tax returns among their records.

Both lawyers said they could not say publicly, prompting Circuit Judge Peter W. Hall to sarcastically ask whether the appeals court, which is just beneath the U.S. Supreme Court, needed to go to a court to seek an order to get the answer. The judges then gave the banks two days to respond in writing.

At one point in the hearing, a man and a woman rose and stood quietly in the back of the courtroom, holding up signs that were taken away by courthouse personnel. One sign held by Zack Winestine said: "Uphold the Constitution. Stop the Obstruction."

The House Financial Services and Intelligence committees had asked Deutsche Bank and Capital One to turn over records related to Trump's business ventures as they investigate "foreign influence in the U.S. political process."

Trump is challenging the subpoenas along with three of his children, contending they did not serve a proper legislative purpose and they were overbroad.

Circuit Judge Debra Ann Livingston said she believed the congressional subpoenas were the first of their kind.

She said it made her want to "seriously consider" Justice Department arguments submitted in writing this week arguing that the constitution's separation of powers between branches of government requires that the scope of the subpoenas be narrowed.

Circuit Judge Jon O. Newman said the appeals court has options beyond approving or rejecting the subpoenas.

The court did not immediately rule.

Earlier this year, U.S. District Judge Edgardo Ramos said it was not a tough decision to allow the subpoenas to proceed, saying Trump and his companies were "highly unlikely" to succeed in challenging them.