Update: The Wall Street Journal adds some interesting color to the story - reporting that Cohen taped the conversation in person, that they discussed acquiring the rights to McDougal's story which was previously sold to the National Enquirer's parent company, and that the recording, which was under two minutes long, cuts out before the conversation ended.

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President Trump's former longtime attorney, Michael Cohen, secretly recorded Trump two months before the 2016 US election discussing payments to a former Playboy model who said she and Trump had an affair, according to the New York Times, citing lawyers and others familiar with the recording which was seized during an FBI raid on Cohen's office.

The F.B.I. seized the recording this year during a raid on Mr. Cohen’s office. The Justice Department is investigating Mr. Cohen’s involvement in paying women to tamp down embarrassing news stories about Mr. Trump ahead of the 2016 election. Prosecutors want to know whether that violated federal campaign finance laws, and any conversation with Mr. Trump about those payments would be of keen interest to them. -NYT

The existence of the recording will undoubtedly kick open the door to tactics Trump and his associates have used to keep aspects of his business dealings and personal life secret, posits the Times, while it also highlights the potential legal and political danger that Cohen poses to Trump.

Cast outside of Trump's inner circle, Cohen recently lawyered up with longtime Clinton pal Lanny Davis, who suggested two weeks ago that Cohen cooperating with prosecutors might not work out so well for Trump.

Did @rudygiuliani really say on Sunday shows that @michaelcohen212 should cooperate with prosecutors and tell the truth? Seriously? Is that Trump and Giuliani definition of “truth”? Trump/Giuliani next to the word “truth” = oxymoron. Stay tuned. #thetruthmatters — Lanny Davis (@LannyDavis) July 9, 2018

"We have nothing to say on this matter," said Davis when asked about the tape.

Trump's personal attorney, Rudy Giuliani, told the Times that the recording existed, however the payment to McDougal was never made.