Bannon threatened to quit.
In tomorrow's Times tonight:
NY TIMES: Trump Removes Stephen Bannon From National Security Council Post
THIS:
Mr. Bannon resisted the move, even threatening at one point to quit if it went forward, according to a White House official who, like others, insisted on anonymity to discuss internal deliberations. Mr. Bannon’s camp denied that he had threatened to resign and spent the day spreading the word that the shift was a natural evolution, not a signal of any diminution of his outsize influence.
His allies said privately that Mr. Bannon had been put on the principals committee to keep an eye on Mr. Trump’s first national security adviser, Michael T. Flynn, a retired three-star general who lasted just 24 days before being forced out for misleading Vice President Mike Pence and other White House officials about what he had discussed with Russia’s ambassador. With Mr. Flynn gone, these allies said, there was no need for Mr. Bannon to remain, but they noted that he had kept his security clearance....
And this:
But blunders by Mr. Bannon’s team — especially the first immigration order, which was rejected by multiple courts — have undermined his position. His take-no-prisoners style was not a winning strategy on Capitol Hill, and Mr. Bannon declined to take a significant part. Experienced politicians, including Mr. Pence and Mr. Trump’s budget director, Mick Mulvaney, stepped into more expansive roles as negotiations over the failed health care overhaul dragged on.
Mr. Trump initially supported Mr. Bannon’s take-it-or-leave-it final message to holdouts in the House Freedom Caucus. But, needing a win, the president grew skeptical and authorized Mr. Pence to resume health care talks, with Mr. Bannon playing more of a supporting role, according to three people close to Mr. Trump.
Mr. Bannon has also been at odds with Gary Cohn, the president’s national economics adviser. Mr. Cohn is close with Mr. Kushner, who has said privately that he fears that Mr. Bannon plays to the president’s worst impulses, according to people with direct knowledge of such discussions.