In the clip Conway argues that the fact that Bill Clinton settled a sexual harassment lawsuit is evidence that he was guilty. Basically she seems to be implying that if he were innocent he wouldn't have settled, so the fact that he settled is proof of his guilt. This claim is clearly false, and it is an additional example of how the Trump campaign completely misunderstands the US legal system and the Constitution. Anderson Cooper, however provides a different response bringing up the fact that Donald Trump, Conway's employer and the person she is defending, has a long history of settling a variety of lawsuits. Cooper then presses Conway on whether this is evidence of Trump's own guilt in the lawsuits that he settled. In effect, Cooper is pointing out an enormous inconsistency in Conway's argument, and Conway really can't respond other than by trying to change the subject (a good example of a Red Herring). To his credit, Cooper is quite aggressive in holding Conway's feet to the fire, a tactic I wish more journalists employed.
h/t to Natalie Thongrit and someone on Facebook