Cohen has not been charged with a crime, but the Federal Bureau of Investigation raid of his home, hotel room and office in early April revealed that prosecutors had zeroed in on his personal financial dealings, including the payment he made to porn star Stormy Daniels on Trump's behalf before the election.
The New York Times' Maggie Haberman went so far as to hint that Trump, while angry about Cohen's legal troubles and the bungling of the Stormy Daniels situation, is actually afraid of Cohen.
Gasparino said that Fox Business has confirmed that one of Cohen's attorneys, Stephen Ryan, could drop out of the case.
Tuesday, Gabriel Sherman of Vanity Fair reported Michael Cohen-who is under criminal investigation in NY over his business dealings-"has told friends that he expects to be arrested any day now".
Cohen has maintained that he's innocent of wrongdoing, and Trump has called the raid on his lawyer an assault on attorney client privilege.
Federal prosecutors in NY have publicly said they are investigating alleged fraud in Cohen's business dealings, but haven't disclosed details.
"Attorney-client privilege is dead", the president tweeted.
The unnamed source who spoke to the NYDN characterized Cohen as "very stressed out" about the possibility of an indictment.
Lawyers for Mr. Cohen didn't respond to requests for comment.
But as the investigation widens, and with Cohen's legal team in turmoil, the chances increase that Cohen could cooperate with prosecutors.
Trump has repeatedly said there was no collusion, and Russian Federation has denied interference.
The AP reports federal prosecutors in NY have publicly said they are investigating alleged fraud in Cohen's business dealings, but haven't disclosed details.