Federal appeals court rules Trump can't block New York subpoena for his tax returns

The Manhattan district attorney can obtain President Donald Trump's tax returns, a federal appeals court ruled on Wednesday, dealing the President another setback in his effort to shield his tax returns from investigators but the case is likely to head to the Supreme Court.

The 2nd US Circuit Court of Appeals broadly rejected Trump's arguments that the subpoena for his records was overly broad and issued in bad faith.

"We have considered all of the President's remaining contentions on appeal and have found in them no basis for reversal," the court ruled.

The tax returns and other financial records will not immediately be turned over to prosecutors. The appeals court stayed the enforcement of the subpoena based on a joint agreement between the Manhattan district attorney and the President's legal team. Under that arrangement, there is a 12-day briefing schedule for Trump to ask the Supreme Court to stay the enforcement of the subpoena.

A spokesman for Manhattan District Attorney Cyrus Vance declined to comment. A representative for the Justice Department said it is reviewing the ruling.

The lawsuit was the latest attempt by the President to try to block the subpoena following a Supreme Court ruling this summer that said the president did not have broad immunity from a state grand jury subpoena. Following that ruling, the President's lawyers amended their lawsuit alleging the subpoena was too broad and issued in bad faith to harass the president.

In anticipation that the appeals court would allow the subpoena and reject the President's legal arguments, lawyers for both sides agreed to hold off on enforcing the subpoena to allow the President's lawyers to ask the Supreme Court to "stay" the ruling.