Skip to main content

tv   CNN Newsroom  CNN  May 23, 2012 6:00am-8:00am PDT

6:00 am
tim tebow and in the process he broke several man rules. you don't get to pick your sports team. you're born into your sports team. >> when you're a grown man, pick your own team. >> i will say that i am born into my sports team. the denver broncos. i'm so proud of tebow. we're going to miss him. we're looking forward to peyton manning taking the field. >> you divorced yourself? because of tebow? >> he went to the colts. >> houston texans will beat all of you. >> that's our final word. thank you, guys. let's get right to carol costello for "cnn newsroom." good morning. >> good morning, soledad. happening right now in the "newsroom," main street's distrust of wall street growing stronger this morning. word that insiders and not the average american investor allegedly got a heads-up on potentially negative news about facebook. today we're pressing the banks involved to speak up. do you know who john wolf is? what about keith judd? there are more and more taking
6:01 am
away the southern vote from president obama. the president this morning struggling and refocusing. security scramble. new information this morning on that u.s. airways plane diverted. you would be surprised how often f-16s are sent up to follow passenger planes. nancy reagan now 90 resting after breaking a number of ribs in a fall. the former first lady recovering. "newsroom" begins right now. good morning. i'm carol costello. high profile investors may have got an insider view of facebook's future before the social network's stock went public. if you didn't have big bucks, you were probably left in the dark. if that is true, it reinforces some of the worst stereotypes about wall street as "time" magazine put it, it means the entire game is a casino rigged for the house with a sucker played by the average investor.
6:02 am
that's the controversy surrounding a name we all know. morgan stanley which served as facebook's lead underwriter and now investigators reportedly want to know exactly what happened. alison kosik is at the new york stock exchange. can you explain it to us? >> follow this with me, carol. one of the big issues here is who knew what? a week before the ipo of facebook meaning when facebook went public with its shares, it went ahead and revised its documents with the s.e.c. and that's normal. companies usually update their information several times as it leads up to the big day. now what facebook did is they told the s.e.c. that the company may struggle to make money off of its mobile devices and what analysts do is they take that information and they issue guidance to their investors and what their assessment of the company is. what morgan stanley, the chief underwriter of this ipo did, was issued a weaker outlook for facebook. now the thing is, public companies just keep in mind that public companies when you issue
6:03 am
this information, that information is shared with everyone, big and small investors to level the playing field. the guidance for morgan stanley winds up helping people make more educated decisions about how to invest in facebook. the thing is that it's not clear if the information was shared with everyone. if the information only went to big investors, she got a leg up. what morgan stanley says is they followed the protocol. morgan stanley says they followed the same procedures for facebook offering it follows for all ipos. procedures are in compliance with applicable regulations. >> if morgan stanley is guilty of what you just said, what could happen to morgan stanley? >> we don't know if morgan stanley is guilty. >> what if? >> you wonder if anything could happen after we saw what happened with the financial crisis. has any bank been punished? let me just say this.
6:04 am
this is a big legal gray area. public companies are required to let all investors know this information ahead of time but some security law experts say it may not apply to information that facebook gave to underwriters before going public so in that case if that's the case, carol, they would not have the obligation to give this information out all at the same time even to the little guy that maybe morgan stanley wasn't in the wrong here because maybe they weren't obligated to give out this information all at the same time. clearly it looks really bad pr-wise. it does little to quell what upsets everybody that the system is rigged against the little guy. you have to wait to see all of the details come out on this and s.e.c. is investigating. >> i don't know. i think that if they did do this, why pick facebook? it's the most -- i mean -- >> the biggest fiasco ipo. it really is. >> so much public attention was
6:05 am
focused on facebook and its ipo. are you kidding? >> just pile it on all of the trouble for the biggest ipo that we can remember. traded so many shares and interest. look at this big black eye. one after another on this ipo. facebook still made out in cash. >> i know. alison kosik live at the new york stock exchange. to a stark reminder of the changing face of terrorism and how seriously new threats need to be taken. at this time yesterday not even the people aboard this flight knew,000 they were the center of the latest scare. a fellow passenger quietly slipped a note that she had a device surgically implanted inside her. that's the technique al qaeda is now pursuing to kill americans. fighter jets scrambled and the flight diverted from the planned landing in north carolina to a closer airport in maine. >> i have been flying my whole life. i never have been from that
6:06 am
altitude to landing that quickly. >> no one knew what was going on. we thought it was a medical emergency and then they told us they were low on fuel because there were strong headwinds. as we were landing you could see the ambulances. >> lizzie o'leary is our aviation and regulation correspondent. lizzie, even before the flight landed, this woman who said she had the device implanted in her body, she was examined by doctors on board the plane. tell us how those doctors determined that she didn't have a device implanted in her body? >> reporter: what we know from two lawmakers is she claimed she had a device implanted surgically implanted. didn't specify what kind of device. never said according to senior law enforcement official that it was a bomb or anything like that. the flight attendants asked on the overhead paging system if anyone was a doctor. a doctor examined her. they found according to two lawmakers no evidence of fresh
6:07 am
scars or anything that would be a cause for concern and then took her to the back of the cabin and sat with her for a while until this plane was landing and according to one passenger i spoke with, they sat with her for some time, close to an hour until the flight was able to divert safely to bangor, maine. >> the fighter jets deployed. they were flying alongside the plane. if it was determined this woman was a danger, what would happen? >> fighter jets you need to think of this way. an extra set of eyes and ears. it sounds quite dramatic to viewers but this does happen and happens not infrequently. it happens sometimes with commercial airplanes but more generally with private airplanes that maybe go into restricted airspace. that's something we have seen. so what you have with these fighter jets is a chance to get up and take a look at the plane and sort of have an extra set of eyes on it. we heard from passengers that these jets weren't even close
6:08 am
enough for them to see it. we also know from air traffic control transmissions that the pilot of this u.s. airways plane confirmed to air traffic controllers that the cockpit was secure and they were all aware of that and he was in command and in conversation with the air traffic control pretty much the whole time as they guided this flight down. when you think about fighter jets, they are up there to add really an extra level of observation to a flight like this. >> all right. lizzie o'leary reporting live for us from washington. turning now to presidential politics. we're crunching the numbers and a razor thin race turns even tighter. average of three national polls conducted in the past week. gallup, nbc/"wall street journal" and abc/"the washington post." poll of polls. president obama is running uncontested in most democratic primaries but not in arkansas. an attorney by the name of john wolf challenge the president
6:09 am
there. "the washington post" reports wolf got about 40% of the vote yesterday. the arkansas primary was held yesterday. the same percentage of democratic voters made their presidential protests known in kentucky's primary choosing uncommitted over the president. today the so-called cradle of civilization writes a new chapter in history. 50 million egyptians can begin voting today in a landmark presidential election. it's the latest ripple from arab spring when outrage citizens rose up and toppled dictators and the thugs that kept them in power. you remember these pictures. history making pictures. this is history making too. it's egypt's first presidential election since the revolution that ousted hosni mubarak. he's awaiting the verdict that he killed protesters during this very uprising.
6:10 am
let's head to cairo and get the latest for you. ben wedeman is there. what's the turn out like, ben? >> reporter: the turnout has been fairly good but this is a two-day election. polls are open from 8:00 a.m. to 8:00 p.m. this time it's 3:00 in the afternoon in cairo. people are getting out of work and they're coming to vote. by in large the atmosphere has been very positive, very upbeat. people very happy to be able to for the first time in their lives actually pick who runs their country. in fact, this morning we were at one polling station where we met a 70-year-old woman voting in a presidential election for the first time in her life. she had waited 2 1/2 hours. she arrived 2 1/2 hours before the polls opened because she wanted to be the first person in her neighborhood to cast her t
6:11 am
ballot. we're at a middle school in a suburb of cairos where voices have been raised because people are tired of waiting around and it's hot in cairo at the moment. those are most of the complaints we're hearing just that people have to wait for a long time. no reports yet of any severe issues with the election. it seems to be going fairly smoothly so far. carol? >> ben wedeman reporting live from cairo, egypt, this morning. today a member of the british royal family will carry the olympic torch. the torch is zigzagging through the united kingdom. some 8,000 people in all will eventually carry it. many of them every day people. but today it's been carried while riding horseback. the daughter of princess ann who is queen elizabeth's only daughter. the secret service scandal in colombia with a shocking
6:12 am
defense coming from fired agents. they said everybody is doing it. every communications provider is different but centurylink is committed to being a different kind of communications company. ♪ we link people and fortune 500 companies nationwide and around the world. and we will continue to free you to do more and focus on what matters. dude you don't understand, this is my dad's car. look at the car! my dad's gonna kill me dude...
6:13 am
[ male announcer ] the security of a 2012 iihs top safety pick. the volkswagen passat. that's the power of german engineering. right now lease the 2012 passat for $209 a month.
6:14 am
mine hurt more! mine stopped hurting faster... [ female announcer ] neosporin® plus pain relief starts relieving pain faster and kills more types of infectious bacteria. neosporin® plus pain relief. for a two dollar coupon, visit neosporin.com. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.
6:15 am
about 15 minutes past the hour. we begin in maine learning about the paris to charlotte device and the passenger that said she had a device implanted in her. u.s. fighter jets escorted the plane. a law enforcement source says the woman will likely undergo psychological tests. no verdict in john edwards' corruption trial. the jury asked for more evidence yesterday. as to how edwards is doing? >> how are you oholding up, senator? >> i'm okay. thank you for asking. >> he's accused of using campaign contributions to hide rielle hunter. nancy reagan is following doctor's orders to not attend big events until she gets
6:16 am
better. she backed out of an event last night that featured house budget committee chairman paul ryan. she broke some ribs back in march and has been slow to recover. here's an excuse worthy of any 12 year old. four of the secret service agents fired in the colombian prosecution scandal say it's unfair because everyone is doing it. according to "the washington post," the former agents want their dismissals overturned because the agency has long tolerated wild behavior on the road. they say the unwritten code even has its own name. the secret circus. that culture goes under the microscope this morning when a hearing is opened this morning. i'm sure that lawmakers are reading this article in "the washington post" with interest. >> reporter: and you can be sure that the director of the secret service will be getting some tough questions today when he goes before the committee in
6:17 am
just about an hour and a half. for the part of the director, mark sullivan, in advance copy of prepared remarks that we received, sullivan will obviously acknowledge that this incident has happened and events happened saying it's not representative of the values of the secret service but the director is defending in these remarks his agency calling the misconduct an aberration in one section and also pointing out that none of the security plan surrounding the president was compromised because of the incident. no operational security was compromised because of the incident and pointing out vast majority of secret service personnel were down there doing their jobs and there were 200 down there in cartagena and nine have now been found to be involved with serious misconduct. sullivan in his prepared remarks also says that obviously they are taking this as a learning experience and want to make sure it never happens again and
6:18 am
that's one of the main questions that the lawmakers that will be speaking with him will ask about how to make sure this doesn't happen again but to your point, when you were talking in the lead in, he will also face tough questions about this issue of whether there is a culture of this within the secret service. i spoke with the chairman of the committee yesterday, senator lieberman. he wants to know should they have seen this coming and that's something the top republican on the committee definitely wants to know. susan collins in her opening remarks that we received says the facts suggest to her this is likely not a one-time incident and also goes on to say it's basic counterintelligence 101 secret service personnel and others holding positions of trust in the u.s. government should avoid any situation that could provide foreign intelligence or secret service or criminal gains with the means of exerting coercion or blackmail but two primary means of entrapment sexual lures and alcohol were both present in
6:19 am
abundance here involving these incidents. tough questions coming up when this hearing begins in an hour and a half. >> we'll check back with you. kate bolduan on capitol hill this morning. don't you love a good implosion. they are cool to watch. a new world record will be set today when demolition crews implode the tower at a nuclear testing site in nevada. this will be the tallest structure of its kind ever imploded. the tower, which sits about 65 miles north of las vegas was used for nuke testing during the cold war but it would take more than a million dollars in repairs to make it usable for new research so some factoids for you, it stands more than 1,500 feet high, taller than both the empire state building and the eiffel tower. the implosion is scheduled for 12:30 eastern time this afternoon. i'm going to be sitting right in front of cnn and i'm going to be watching. today a parade of tall ships will sail up the hudson river in new york for fleet week commemorating the war of 1812.
6:20 am
there will be a military flyover. fleet week celebrations give citizens a chance to meet members of the u.s. navy and coast guard. isn't that beautiful? similar sight in baltimore too where as you know soldiers there chased away the british and ended the war essentially. just saying. if you text someone while they're driving and they get in a car crash, could you be held responsible? one teenage girl is at the center of a lawsuit blaming her for a nasty texting while driving. let me say this another way. so if you're in a car and you're driving and you're texting someone some place else, should that person that you're texting also be responsible for the car crash that you were involved in? it's a big lawsuit pending. we'll tell you about it next. sometimes, i feel like it's me against my hair.
6:21 am
[ female announcer ] weak, damaged hair needs new aveeno nourish+ strengthen. active naturals wheat formulas restore strength for up to 90% less breakage in three washes. for strong, healthy hair with life, new aveeno nourish+ strengthen.
6:22 am
6:23 am
if someone gets in a car crash while they're texting and you were sending them the text, you could be sued. that sounds confusing. that's what's happening to a teenage girl in new jersey. this lawsuit could set a legal precedent. here's deborah feyerick.
6:24 am
>> reporter: the accident happened in new jersey along this winding country road. >> went around a curve and i saw a pickup truck coming right for us with a young man with his elbow steering and his head down and he was texting. next thing i know, he hit us. >> reporter: both david and his wife lost a leg in the head-on collision. cell phone records show the driver, 19-year-old kyle best was texting a girlfriend virtually at the moment of impact. in a potentially precedent setting case, they are suing them both saying the girl knew her friend was likely driving home especially since the two texted each other almost every day. >> if shannon knew that kyle best was leaving work and i believe she did and she was texting him, i believe she's just as responsible. >> physically not in the car,
6:25 am
the lawyer argues that the texting put her in the car electronically saying she helped trigger the disastrous crash. >> it is as if you were putting your hands over the eyes of the driver preventing that driver from seeing ahead of them. >> kyle best pleaded guilty to careless driving, failure to stay in the lane and improper use of a cell phone. the couple is suing for an unspecified amount in damages. during a deposition, the girlfriend testified she may have known her friend was driving but the lawyer argues the suit should be dismissed because a message sender has no way to control when, where or how a message receiver acts after the message is transmitted. david lost not only his leg but his job and insurance after the crash. >> it could have been prevented. it was not an accident. >> reporter: a judge is set to rule friday whether they can move forward and sue both texters. >> deborah feyerick is in new york. so what is this about to the
6:26 am
victims? is it about money or making a point? >> it's a little bit about both. you have to think their lives were changed after this happened. they each lost a leg when the motorcycle went out from under them and the husband actually saw his leg separate and the wife's leg had to be amputated afterwards. there's lot of trauma associated with this. they want people to understand that if you are aware that someone is driving, that maybe it's best to hold off on the texting because it is a distraction and as you heard the lawyers say, it is like covering their eyes. we did reach out to the lawyers for the defendants, and they did not talk to us for this piece. >> so this is the first time a lawsuit like this has ever been filed? >> it's very interesting. there's not a lot of case law when it comes to texting. this is sort of stretching the envelo envelope. this is seeing whether in fact they can make the argument that if you do distract a driver,
6:27 am
it's as if you are a passenger in that car. there is precedent where it goes to that. if you are driving drunk and you have a buddy with you and they say take another beer, speed up. both passengers are then responsible. but the question is, did that girl when she texted him know that he would actually respond when he did and the cell phone records suggest that perhaps, yes, that was the case. >> deborah feyerick reporting live for us from new york. thank you. >> now is your chance to talk back on one of the big stories of the day. the question for you this morning. do ceos make good presidents? the argument may sound new but it's really not. for years americans have been captivated by miss titans. think ross perot, donald trump, herman cain. in 2004, george w. bush ran as america's ceo president touting his nba and mitt romney is doing
6:28 am
the same thing and voters seem to agree. according to a "wall street journal" poll, 59% called romney's business experience an advantage in helping improve the economy if he's elected. and republicans are capitalizing on this. they are painting president obama as the anti-ceo. >> this is certainly the most anti-business administration since carter years and at least you can say for president carter, he was largely incompetent. this administration has done a lot of damage to the country. we hope it can clean up the mess and repair damage after the election. >> democrats are trying to convince voters that republicans are wrong about that. mr. obama is pro-business but does not believe a ceo necessarily makes a good president. >> your job as president is to promote the common good. that doesn't mean the private equity guys are bad guys.
6:29 am
they're not. that no more qualifies you to be president than being a plumber. >> consider this. under george w. bush economic growth was sluggish fueled by the housing bubble which as you know burst. what about ronald reagan? the retired actor? or bill clinton, the career politician. both non-ceo presidents that helped pull the country out of economic malaise. do ceo's make good presidents? facebook.com/carolcnn. i'll read your responses later this hour. [ male announcer ] this one goes out to all the allergy muddlers.
6:30 am
you know who you are. you can part a crowd, without saying a word. you have yet to master the quiet sneeze. you stash tissues like a squirrel stashes nuts. well, muddlers, muddle no more. try zyrtec®. it gives you powerful allergy relief. and zyrtec® is different than claritin® because zyrtec® starts working at hour 1 on the first day you take it. claritin® doesn't start working until hour 3. zyrtec®. love the air.
6:31 am
claritin® doesn't start working until hour 3. have you ever partaken in a car insurance taste test before? by taste? yes, never heard of it. well, that's what we're doing today. car insurance x has been perfected over the past 75 years. it's tasty. our second car insurance... they've not been around very long. mmmm... no good! no good? no good! so you chose geico over the other. whatever this insurance is, it's no good. ok so you...
6:32 am
i knew it'd be tough on our retirement savings, especially in this economy. but with three kids, being home more really helped. man: so we went to fidelity. we talked about where we were and what we could do. we changed our plan and did something about our economy. now we know where to go for help if things change again. call or come in today to take control of your personal economy. get free one-on-one help from america's retirement leader. 32 minutes past the hour. opening bell ringing on wall street. dow futures down over worries about greece leaving the eurozone. tech stocks may suffer today as
6:33 am
dell reports weak sales. to maine where we learn more about that paris to charlotte flight and passenger who said she had a device implanted inside of her. because of that threat, us airways flight 787 was diverted to bangor, maine. u.s. fighter jets escorted it there. the woman will likely undergo psychological tests. to pennsylvania where state lawmakers pushing legislation to defund planned parent hood. republican state representative darryl metcalf will introduce it today. two anti-abortion groups co-wrote the bill that would put health care providers that offer abortion services at the bottom of the priority list for state funding. former first lady nancy reagan is following doctor's orders not to attend big events until she gets better. she backed out of an event last night that featured house budget chairman paul ryan. she broke some ribs back in march and has been slow to
6:34 am
recover. we get to watch history in egypt. for the first time egyptians will choose a leader without knowing in advance who the winner will be. it comes after protests. the google executive became the face of democracy in egypt. how could we not admire revolutionaries transforming it into freedom square. the young people toppled a dictator, hosni mubarak, and they'll exercise a privilege we take for granted. they will cast a vote. it's not all good news. thosest idea -- before we get io men running for office in egypt. 50 million people are supposed
6:35 am
to vote today in egypt. that's incredible. >> it is incredible. i think one of the things you have to remember about egypt all the time when you talk about it is that it has by far the biggest population and in many ways the deepest culture of any country in the arab world. there are 80 million people in egypt. as goes egypt, in many ways so goes the arab world especially in this time of change and transition and efforts to build democratic movement in the region. that's why many americans are watching the outcome of the elections. this man served for 25 years as a leader in egypt's muslim brotherhood and many americans aren't thrilled about that because they think he may be a hard liner. is he? he's not at least according to official statements going back a few years if you look at what he was writing four or five years ago, he has developing an
6:36 am
image as a relatively moderate hard liner if you will. a moderate islamist. in the old days, decades ago, he was part of a terrorist movement. more recently he's definitely been staking out this turf as a very reasonable politician and a lot of diverse groups are behind him. on one hand you have the really extremists of the islamist movement. you have a lot of people associated with the square that say he has a good chance he's not a bad guy. >> there are a lot of articles that claim this guy believes that 9/11 was an american conspiracy. is that true? >> he has said that. and that's the kind of thing you hear in the middle east all the
6:37 am
time. obviously that's a crazy theory. he's not the only person who say that sort of thing. we heard the same thing in years past from the crown prince of saudi arabia. there was a whole movement within the arab world for a long time that said ironically we couldn't have been that smart. we wouldn't have been that good. we couldn't possibly have taken down the twin towers and hit the pentagon. i don't think that will affect his policies. i do think he'll be harder for the american government to work with than anyone that came before. it was one stop shopping for the american government. they went to mubarak and if he agreed to do something, that was it. now they have to deal with whoever win this is presidential election, they have to deal with muslim brotherhood controlled congress or legislature in egypt so no more one stop shopping. >> we'll be watching the election and outcome. thank you so much for helping us
6:38 am
understand. green bay packers fans could not contain themselves last night. they are going nuts but wait. this is the off-season. we'll explain why they were dancing for joy last night. >> the most exciting moment as an archaeologist happened when i was looking at the great from "indiana jones." we got satellite imagery and processed it and from thousands of miles away in my lab in alabama we were able to map the entire city. using this technology is an enormous shortcut. an invisible world comes to life when you process the satellite data. there's a whole other way to use geography and gps. she turned me onto this entire
6:39 am
field. ♪ [ engine turns over ] [ male announcer ] we began with the rx. [ tires squeal ] then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. see your lexus dealer. [♪...] >> announcer: with nothing but his computer, an identity thief is able to use your information to open a bank account in order to make your money his money.
6:40 am
[whoosh, clang] you need lifelock, the only identity theft protection company that now monitors bank accounts for takeover fraud. lifelock: relentlessly protecting your identity. call 1-800-lifelock or go to lifelock.com today. [ female announcer ] did you know the average person smiles more than 50 times a day? so brighten your smile a healthy way with listerine® whitening plus restoring rinse. it's the only rinse that makes your teeth two shades whiter and two times stronger. ♪ listerine® whitening... power to your mouth. listerine® whitening... kiwi. soy milk. impulse buy. gift horse. king crab. rhubarb pie. lettuce shower. made by bees. toucan sam. that's not cheese. grass fed. curry. gingersnaps. soup can tower. 5% cash back. right now, get 5% cash back at grocery stores. it pays to discover.
6:41 am
6:42 am
the mirror ball trophy has been awarded so which "dancing with the stars" finalist won? i bet you know by now. "showbiz tonight's" a.j. hammer is here to fill us on even more than we already are. i know green bay packers fans went nuts when the winner was announced. >> it was their right. one of their own, green bay packers wide receiver donald driver won the big prize. he's the third nfl star now to win this competition. and boy, was he excited. you have to take a look at what happened when he won the mirror
6:43 am
ball. >> the winners and new champions of "dancing with the stars" are donald and peta! >> it's like he scored a touchdown. packers fans -- >> i thought he was going to spike her like a ball. >> it's a good thing he had that level of control. packers fans should be pleased with themselves today because this competition did come town to fan boats. some teammates and famous wisconsin natives were rallying support for him on twitter. you may or nay not believe this. driver said winning "dancing with the stars" was comparable to winning the super bowl. that's what he said. >> good for him. i'm glad he's so happy. as a football fan, i rather he win the super bowl. >> yeah. >> another story you're following. bruce willis, another star
6:44 am
getting political. >> he was giving an interview promoting his five movies this year. he did wander from the professional into the political arena and he's getting heat for it. he called mitt romney a disappointment and embarrassment saying this. he's just the dash of the republican party. willis added that even if he win, he won't change anything. he'll get in there and they'll smile at him and introduce themselves. we're congress. we make sure nothing changes. he went do it. he can't. everybody wants to be barack obama and what did he change? i should make the point here, bruce willis isn't what a lot of people would call a hollywood liberal. he supported george h.w. bush against bill clinton. like a lot of people, he sounds d disenchanted with the whole political process. >> that's a familiar tune these
6:45 am
days. a.j. hammer, thank you. a.j. will be back with us in the next hour for more showbiz headlines including the actress chosen to play casey anthony in an upcoming tv movie. look at how big this snake is. it's wrapped around a tree in a man's yard and he's having a lot of trouble getting rid of it. [ thunk ] sweet! [ male announcer ] the solid thunk of the door on the jetta. thanks, mister! [ meow ] [ male announcer ] another example of volkswagen quality. that's the power of german engineering. right now lease the 2012 jetta for $159 a month. that's the power of german engineering. [ dog ] we found it together.upbeat ] on a walk, walk, walk. love to walk. yeah, we found that wonderful thing. and you smiled. and threw it.
6:46 am
and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you.
6:47 am
a state of emergency in
6:48 am
place for one nevada county. a wildfire is threatening a couple hundred homes. the topaz ranch estates fire started yesterday afternoon and has now burned 4,400 acres and it destroyed two homes. rob marciano is here to tell us -- >> the tre fire. you mentioned two homes have been burned to the ground. this thing started just yesterday around 2:00 in the afternoon. burned quickly. a lot of wind and dry conditions here. the terrain itself is between 6,000 and about 7,500 feet. obviously there is air support in there. just over 400 people have arrived to help beat the flames back. they have got certainly some weather up against them. the good news is that it tends to burn in some of the higher terrain moving away at this point from some of the neighborhoods and winds themselves are beginning to switch just a little bit. some smoke from this fire can be seen all of the way down into
6:49 am
the las vegas valley. this particular fire is about 60 miles south of reno. that's how far north it is in the area. a quick check on the weather switch to give you an idea of what we're looking at today. extreme fire danger in eastern arizona and much of new mexico today with winds gusting to 55 plus miles an hour. obviously very dry conditions there. the fire just north of phoenix continues to burn only 26% containment there. we are off to an early start here and we didn't have a lot of snow this past winter. we fear that this year's fire season is going to be bad. >> all right. to a different kind of problem. not a serious problem but a problem nonetheless. take a look at this huge snake. it's curled around a tree in a man's yard. this is in south carolina. the homeowner took these pictures. he thinks that's a python. >> it's big like a python. >> but it's not a python according to officials, whoever they are.
6:50 am
likely a black rat snake. have you ever heard of a black rat snake? >> no. i suspect that one has eaten a lot of rats. >> it actually has eaten a lot. why is it in a tree, you ask? i don't know. maybe it's eating squirrels. >> i've seen some -- rats with long tails. >> he's trying to get it off the tree but it won't go. >> hopefully it doesn't switch from well, the problem is i thi the homeowner doesn't want to pay to have the snake removed so it's going to stay there until it goes away on its own. >> i'm wondering if it was a pet at some point. how is it slithering through a neighborhood in south carolina? >> i don't know. >> rat snakes, not as sexy as pythons but equally as scary >> we'll keep you posted. imagine calling 911 and -- >> yes, uh-huh. >> and all you hear is snoring. we've got the tapes to prove it. and details on what exactly happened to the dispatcher.
6:51 am
[ tires squeal, engine revs ] ♪ ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
6:52 am
6:53 am
we asked for your feedback this morning. the question, do ceos make good presidents? angie says no. the purpose of a ceo is to create wealth for corporate investors, often to the detriment of customers, employees, and stakeholders. a president's job is to balance the needs of the entire country. alvin, if that were the
6:54 am
criteria, ross perot would have been president a long time ago. the rich are only accountable to themselves. it's their blatant disregard for the less fortunate that clearly disqualifies them for leadership over all americans. ryan, in economic trouble, a successful ceo is necessary. they know what it takes, and won't go into a burning fire with propane tanks like our current president. and one says, being a ceo isn't a problem. being a rudderless, out of touch, elitist, corporate pillager is. another, having a good business mind will be an advantage in a president. but running a country is not like running a company. you cannot get rid of the unprofitable parts like the sick and the elderly. keep the conversation going at facebook.com/carolcnn. we'll have more of your comments in the next hour. combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils to promote proper sleeping posture all night long.
6:55 am
the revolutionary recharge sleep system from beautyrest... it's you, fully charged. right now, receive two free recharge pillows with the purchase of select beautyrest mattresses.
6:56 am
6:57 am
when you call 911, you expect to get help for your emergency. not someone snoring. for one woman, that's exactly what she got. here's cnn's jeanne moos. >> reporter: we've all been there. elbow falling off the arm rest as we fall asleep -- >> to live up to their purpose and potential. >> reporter: but it's one thing to snooze during a speech, and another to snooze during a 911 call. >> no. >> reporter: that's not just breathing. that's snoring. around 12:30 in the morning, a call came in from this apartment complex to montgomery county,
6:58 am
maryland, fire and rescue. >> fire and ambulance. >> hello? hello? >> reporter: the dispatcher apparently nods off. >> hold on one second, ma'am. let me try and get them on the line again. >> reporter: another takes over, but the sleeper stays on the line. the husband is apparently unconscious. >> he is blue. >> reporter: but the dispatcher mistakes the snoring for the victim having trouble breathing. >> and tilt his head back. >> yes, uh-huh. >> ok. is that him i hear doing the snoring noises? >> yes. >> ok. are you able to keep that airway open like that? i see the snoring noises have stopped. >> reporter: not for long. >> is the blueness going away? >> to me it looks not good to me. >> reporter: you can actually hear the dispatcher snore maybe 17 or 18 times during the course of the 911 call. according to deputy fire chief scott graham --
6:59 am
>> 24 years here, this is the only incident i can recall where a dispatcher has fallen asleep on a 911 call. >> oh, i don't know what to do. he -- >> is he still making the snoring noises? >> well, for a little bit. but he stopped breathing for a little while. >> reporter: it turns out the sleeping firefighter was 17 hours into his shift. >> he was 20 minutes away from going into his rest period. >> reporter: now he is on paid administrative leave. as for the patient -- the deputy chief says the incident had no adverse impact on the victim's condition. about 5 1/2 minutes into the call, the sleeping dispatcher wakes up, pinning up where he left off, muttering a question. >> what's the address? what's the address? ma'am, what's the address? >> reporter: who knew 911 needed a wake-up call? jeanne moos, cnn -- >> yes. uh-huh. >> reporter: new york. one of our affiliates in washington, d.c., wosu is saying
7:00 am
that the victim was taken to the hospital, treated and released and is doing just fine now. the next hour of "cnn newsroom" starts right now. good morning to you. i'm carol costello. just ahead, new fallout from facebook's ipo. could a major bank give big time investment firms an unfair advantage? morgan stanley is responding while regulators launch an investigation. the secret service or the secret circus? that's the term reportedly used to describe the wild behavior by the agents when they hit the road. that's the focus of a senate committee hearing that started just moments ago. the director of the secret service is set to testify in that hearing room any minute now. casey anthony's trial captivated the country, and now her ordeal will be turned into a made for tv movie. this morning, we know who will
7:01 am
play the lead role. but we begin this morning with the facebook fiasco. it's getting ugly. or should i say uglier. here is the latest allegation. some high profile investors may have gotten an insider's view of facebook's future before the social network's stock went public. that means wall street insiders got information about the value of facebook's ipo the rest of us did not get. federal regulators are now investigating. the managing editor of "fortune" magazine is joining us now. hi, andy. >> hey, carol. >> i hope you make us understand this story because it's tough. this sort of sounds like insider trading. is it? >> well, you know, it's called -- the technical term for it, if the allegations are true, is selective disclosure. in other words, insiders telling one group of investors some information and not telling other investors. obviously, that would confer a huge advantage to the investors who were given that information. if that's what happened, it is
7:02 am
against the law, but difficult to prove, very murky, as are the facts in the case right now. >> so it's likely even if facebook's underwriters are guilty of this that absolutely nothing will happen? >> you know, we've seen this so many times on wall street. because what happens is violating the letter of the law, proving violations of the letter of the law, is very, very difficult. but to us, carol, it's very clear that if this is true, it violates the spirit of the law. and i just wish that it was easier to prosecute these cases. in other words, you ask the person who disseminated the information, how would you like it if you were buying the stock and you didn't have that information? what would you think? it's just common sense here. >> ok. so this is coming off to average americans just like you say, as banks behaving badly yet again. facebook's major underwriters, names we have all heard before, jp morgan chase, goldman sachs,
7:03 am
morgan stanley. they are fighting more federal regulations. but how can they sit there and fight the regulations when this stuff is still allegedly happening? >> well, you know, again, they are going to say, well, it's a rogue employee or this is one isolated thing. again, if it's true, they are going to say it's not systemic. but, you know, it just continues to create this environment where the average american distrusts, dislikes these institutions. they are behaving badly. they are not curbing their behavior. and this kind of stuff with the facebook ipo, it's just greed. they increased the size of the offering, the price of the offering. at the same time, apparently they were getting wind that the results of the company, the financial results, were a little weaker than anticipated. the other question, carol, is did facebook tip off the investment banks and tell them that? there's all kinds of questions here. and maybe all kinds of levels of guilt as well.
7:04 am
>> ok. so just the brazen business of this. -- brazenness of this. it goes public. there's a lot of publicity sush rounding this. and then this stuff allegedly happens? what does it say about wall street? even if all eyes are on us, we can do what we want? >> well, they are going to suggest, we were just having a side conversation over a cup of coffee, or maybe something like that. so there's that. the other thing is silicon valley and facebook. you have to ask yourself, these people, you know, sort of held themselves as holier than thou. we don't really care about the money. we're building a social network, something for the greater good of humanity worldwide. well, actually, you might have been doing that but you really did care about the money as well and i know that because you increased the price of the offering a couple of times. and so not so much holier than the rest of us after all, right? >> andy, thank you so much. >> thanks, carol.
7:05 am
there are reports today that morgan stanley is being sued by investors. morgan stanley declined to comment, but earlier the company did push back on claims by regulators that it did anything wrong regarding facebook stock saying, quote, morgan stanley followed the same procedures for the facebook offering that it follows for all ipos. these procedures are in compliance with all applicable regulations, end quote. ok. here is an excuse worthy of any 12-year-old. now of the secret service agents fired in the columbia prostitution scandal say it's unfair because everybody's doing it. according to "the washington post," the former agents want their dismissals overturned because the agency has long tolerated wild behavior on the road. in fact, they say the unwritten code even has a name, the secret circus. the senate homeland security committee will start a hearing any minute now, and cnn's kate
7:06 am
baldwin is on the hill to cover that. it has it started, kate? >> it has not. should be in the next half an hour. and as soon as it does, we can expect some tough questions to the director of the secret service, mark sullivan. i spoke to the chairman and the ranking member yesterday of the committee, senator joe lieberman and senator susan collins. both expressed they have a lot of tough questions. this is the first time we will hear from the secret service director for the first time since the scandal broke. they want to know not only what the agency has found so far but getting to this question of is there a culture of this at the secret service. when they leave the country. this is something that senator susan collins has raised questions about since the beginning. senator lieberman saying he wants to know if the secret service should have seen this coming, and susan collins says from the facts she has seen it sure doesn't seem like this is a one-time incident. listen here to susan collins.
7:07 am
>> it raises concerns about whether there's some sort of cultural problem in the secret service, despite the fact that the vast majority of agents are ethical and incredibly courageous. that says to agents that somehow different rules apply when they are outside of the united states. >> and both lawmakers also want to know explicitly how the secret service -- what is the secret service will do to avoid this ever happening again. from the prepared remarks from the director, mark sullivan, high is defending his agency, of course, carol, while acknowledging that the incident happened. he calls it an aberration, and points out that there is no aspect of operational security that was compromised because of it. of course, also saying that the actions of these nine individuals who have been -- who were found to be involved with serious misconconduct, they do not represent the values of the secret service, carol.
7:08 am
>> kate, thank you. a pakistani doctor accused of helping the cia track down osama bin laden has been sentenced to 33 years in prison. a tribal court in pakistan convicted him of treason. he was also fined $3,500 for spying for the united states. he helped the cia collect dna samples from the compound and helped verify bin laden's presence. defense secretary leon panetta says the doctor should be released. and the homeland security chairman is ripping the obama administration over the osama bin laden raid. a new report shows that the white house offered film makers access to the top secret navy sa s.e.a.l. team that carried out operation even after top officials told military personnel to stop talking about the raid. the accusations have been out there for a while. congressman peter king, a republican, has been pushing for an investigation since last summer. he thinks letting a film maker that close to classified information could be dangerous.
7:09 am
>> the access that hollywood producers and democratic lobbyists were given to the cia and to the defense department. we are finding now that kathryn bigel bigelow, that all of her meetings at the cia were arranged by a democratic lobbyist group. have i never heard of that before. she was taken to locations and sites that are not even mentioned. they are actually blacked out of the reports and emails because they are sense tiff. >> the white house says it does not discuss classified information. the movie from kathryn bigelow was supposed to come out at the end of the year. a parade of tall ships making their way up the harbor for fleet week in new york, commemorating the 200th anniversary of the war of 1812. there will also be a military flyover. it gives citizens a chance to meet members of the u.s. navy
7:10 am
and the coast guard. a passenger passes a note and fighter jets scramble into action. we'll have the latest on what exactly happened aboard this airliner. every time a local business opens its doors or creates another laptop bag or hires another employee, it's not just good for business, it's good for the entire community. at bank of america, we know the impact that local businesses have on communities. that's why we extended $6.4 billion in new credit to small businesses across the country last year. because the more we help them, the more we help make opportunity possible.
7:11 am
we love theme parks but with four kids, it can just be too expensive. yeah, so to save money we just de our own. oh no! what could be worse than ninety-foot swells?! typhoon! first prize! it's a cheese grater. wooooo... this isn't scary. are you kidding me? look at that picture of your mom's hair from the '80s. there's an easier way to save. wooohooo... geico. fifteen minutes could save you fifteen percent or more on car insurance.
7:12 am
[ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge!
7:13 am
12 minutes past the hour. checking our top stories now, today service officials will have to answer to a congressional committee about an incident in columbia where secret service agents hired prostitutes. still no verdict in john edwards corruption trial. the jury asked to see more evidence again yesterday. edwards is charged with using campaign contributions to hide his affair with rielle hunter. neither he nor hunter testified during the trial. hewlett-packard is expected to cut about 25,000 jobs later today, abobut we don't know whe. it's the largest tech company in the united states and employees about 350,000 people worldwide.
7:14 am
meg whitman is trying to reorganize hp to make it leaner. profits are down 26% this quarter. now a stark reminder of the changing face of terrorism and how seriously new threats need to be taken. at this time yesterday, not even the people aboard this flight knew they were the center of the latest terror scare. a fellow passenger quietly slipped a note that she had a device surgically implanted inside her. that's the very technique al qaeda is now employing to kill americans. the flight diverted to a closer airport in maine. lizzy o'leary is our aviation and regulation correspondent. how did they determine that this woman didn't have a device implanted in her onboard that plane? >> one of the things that happened according to passengers we talked to is the flight crew asked if there was a doctor onboard. a doctor went up and spent some time with this woman. they took her to the back of the
7:15 am
plane with the flight crew and took a look at her. they examined her. according to two lawmakers, there were no signs of any fresh scars. we do talk about this question of a surgically implanted bomb. it's worth noting that she said device, so there's a real wide range of options there. but essentially, they gave her a quick physical exam. and we should note, and certainly the lawmakers we have talked to have noted, this would be quite hard to do. it sounds very scary but it's also quite hard to pull off. >> well, it makes you wonder what if she had a device implanted in her body? these f-15s are on either side of this passenger plane. it's flying over land, over the united states. what would have happened? what's the protocol? >> well, the protocol as we have certainly seen in the richard reid case, in the case of mu tal ab, and those were real incidents, is to get the plane down and get it down as soon as possible. one of the things we know here is that the flight crew sat with
7:16 am
this woman for some time. there was no indication they felt this was an immediate threat to the flight. we also know that the pilot was in communication with air traffic control. in fact, there is an exchange where he says that the cockpit is secure. they confirmed that. so there is a sense that the flight crew, while they were sort of taking all precautionary measures, also was in real communication with air traffic control and authorities saying, we feel that we have this situation under control, and they did land. and they landed pretty quickly as well. >> lizzy o'leary live from washington. a season of change. one year after the arab spring toppled dictators, we'll look at a presidential election that could draw 50 million voters. [ thunk ] sweet! [ male announcer ] the solid thunk of the door on the jetta.
7:17 am
thanks, mister! [ meow ] [ male announcer ] another example of volkswagen quality. that's the power of german engineering. right now lease the 2012 jetta for $159 a month. support team usa and show our olympic spirit right in our own backyard. so we combined our citi thankyou points to make it happen. tom chipped in 10,000 points. karen kicked in 20,000. and by pooling more thankyou points from folks all over town, we were able to watch team usa... [ cheering ] in true london fashion. [ male announcer ] now citi thankyou visa card holders can combine the thankyou points they've earned and get even greater rewards. ♪ listen to what mvp justin verlander thinks about it. i would say the source of most of my muscle pain would be in my shoulder. my trainer kevin rand recommended it to me. i was kind of skeptical at first, but i tested it out, and bayer advanced aspirin relieved my pain fast. feeling 100% every start, every fifth day,
7:18 am
i think definitely gives me a little bit of an edge. but don't take his word for it. put bayer advanced aspirin to the test for yourself at fastreliefchallenge.com
7:19 am
now is your chance to talk back on one of the big stories of the day. the question for you this morning, do ceos make good presidents? the argument may sound new but it's really not. for years, americans have been captivated by business titans. think ross perot, donald trump, herman cain. in 2004, george w. bush ran as
7:20 am
america's ceo president, touting his mba. mitt romney is riding the same bus citing his experience at bain capital as proof he'd be a recessionproof president. voters seem to agree. according to a new poll, 59% called romney's business experience an advantage in helping improve the economy if elected. republicans are capitalizing on this and painting president obama as the anti-ceo. >> this is certainly the most anti-business administration since the carter years, and at least you could say this for president carter. he was largely incompetent. this administration has actually done a lot of damage to the country. we hope it can begin to clean up the mess and repair the damage after the election. >> democrats are trying to convince voters republicans are wrong about that. mr. obama, they say, is pro business, but does not believe a ceo necessarily makes a good president. >> your job as president is to
7:21 am
promote the common good. that doesn't mean the private equity guys are bad guys. they're not. but that no more qualifies you to be president than being a plumber. >> consider this. under george w. bush, economic growth was sluggish, fueled by the housing bubble which as you well know burst. what about ronald reagan, the retired actor, or bill clinton, the career politician? both nonceo presidents who helped pull the country out of economic malaise. so the talk back question for you this morning, do ceos make good presidents? facebook.com/carolcnn. i'll read some of your responses later on this hour. today, the so-called cradle of civilization writes a new chapter in its history. right now, some 50 million egyptians have begun voting in a landmark presidential election. it's the latest ripple from arab spring when outraged citizens rose up and toppled dictators and the thugs that kept them in
7:22 am
power. this is egypt's first presidential election since the revolution ousted whohosni muba. we want to head to cairo now and history. hala, how has voter turnout been? >> reporter: well, carol, we won't have the numbers for a number of days. you called this a ripple of the arab spring. i think you can safely call it a wave at the very least. this is an extremely significant event in the arab world. and certainly within the context of the arab spring. this is the most populist arab country in the world, egypt, and for the first time in its 5,000 year history you have ordinary egyptians going to the polls, casting ballots in what they hope will be the first free and fair elections in this country's history. so why is this a significant day? of course because if this
7:23 am
president is elected and people consider him to have a mandate and legitimacy at the head of this country, then it will determine where politically this country goes, whether or not political islam will be a big part of how the country is governed or whether it will be an ex-mubarak regime member who is more secular. and the big issues here are security, the economy, very much like other western democracies, where elections are being held including france, where i just was. now people at the polling station today tell me they feel it's their duty for the first time in their lives to cast a ballot, and you had the indelible ink there in which voters are asked to dip one of their fingers to prove that they voted and to cut down on voter fraud. so that's the scene here in cairo as we start day one of a two-day process, carol. >> as far as the young revolutionaries, the people that brought about this change, are they happy today, completely happy? >> reporter: completely happy,
7:24 am
no. they are disillusioned and many of them frustrated. i'm sure viewers will remember in january and february of 2011 these young hipster secular revolutionaries. islamists weren't part of the picture in the beginning, you'll remember. now some of them feel like this revolution was stolen from them by religious parties and by former regime members. remember the four front-runners. two of them served under mubarak and two are islamist. so the internet savvy, the revolutioners, the tweeters and the facebookers, some of us today tell me they are disappointed. but all of them almost without exception told me they will go out and vote, carol. >> hala gorany live from cairo, egypt, this morning. president obama not exactly blowing out the primary competition. yeah, he did have some competition. at least in some states. is this something that the president needs to worry about? our political buzz panel weighs in. that's coming up.
7:25 am
[ thunk ] sweet! [ male announcer ] the solid thunk of the door on the jetta. thanks, mister! [ meow ] [ male announcer ] another example of volkswagen quality. that's the power of german engineering. right now lease the 2012 jetta for $159 a month. whose non-stop day starts with back pain... and a choice. take advil now and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪
7:26 am
7:27 am
just about 30 minutes past the hour. checking our top stories now, an historic day in egypt where 50 million people are expected to vote in the first presidential election since the ouster of hosni mubarak. a crittal meeting in baghdad today where iranian officials will meet with six countries to
7:28 am
discuss its nuclear program. it comes one day after the head of the international atomic energy agency says he's close to a deal to unblock an investigation of that program. it's been called the eighth wonder of the world, but a lack of use and millions of dollars in maintenance fees means houston's astrodome could be torn down. it's reportedly just one of the options being unveiled today by officials who hired consultants to assess the future of the ballpark. and right now, a parade of tall ships making their way up the hudson river in new york. fleet week commemorates the anniversary of the war of 1812. fleet week gives u.s. citizens a chance to meet members of the u.s. navy and the coast guard. "political buzz," your look at the best political topics of the day. three questions, 30 seconds on the clock. maria cardona and lenny
7:29 am
mccallister. welcome to both of you. >> thanks, carol. good morning. >> morning. first question. president obama's re-election bid. let's start with jimmy fallon's take. >> there's some political news. while attending meetings in chicago this week, president obama stayed in a hotel instead of his own house. [ laughter ] >> it's true. it was annoying, though, when he asked for a wake-up call, they just showed him his latest poll numbers. oh, boy. >> last night, president obama only got 60% of the primary vote in arkansas. and 58% in kentucky. at least he wasn't losing votes to a convicted felon like he did in west virginia. but the question is, should mr. obama be worried about his support among democrats? maria? >> no, carol. he shouldn't be. look, arkansas and kentucky have never been hotbeds of the
7:30 am
democratic party. there's no real infrastructure there. there's no organization by the obama campaign there. in the swing states, and in the solidly blue democratic states, obama is doing quite well, and that's really where it matters. that's where the decision of this election is going to be made. and frankly, in the polls that we've seen recently, the democratic intensity for voters and the enthusiasm among democrats is beating the numbers among gop voters. so i think those are the numbers that really matter. >> the numbers that really matter are what you're seeing in west virginia, arkansas and kentucky, only because these are the working class voters that are going to be the swing voters in states such as ohio and pennsylvania. and as long as there's apathy there for president obama, and as long as people are jumping out of the work first at the clip that they are jumping out of the work force, president obama has to worry about people jumping off the obama train as well. it's not so much people voting for romney. but if people are staying home
7:31 am
and not voting for him, he's in trouble in november. mitt romney's campaign and the rnc are keeping a close eye on joe biden hoping they'll say something boneheaded and use it to slam the president. good strategy? lenny? >> no, it's not a good strategy. it's a good strategy as a secondary strategy to be ready to pounce. but pundit pouncing is not the way to win the white house. people want to see leadership. you don't usually lose the incumbency or lose the white house. somebody wins it for you. and that's what governor romney is going to have to do to beat president obama. he's going to have to make sure he takes advantage of these opportunities but has a better plan and a better vision and people buy into that and are reminded over what they got over the last four years with this president. >> maria? >> yes, it's a great strategy, carol, and i hope that the romney campaign continues to focus on it. never mind that it won't work or
7:32 am
that it's dumb as lenny focused on, never mind that mitt romney's greatest hits reel is so much larger than biden's gaffs. never mind that other gop strategists have said that it is a dumb strategy and they shouldn't focus on it. and never mind that frankly biden does connect with those middle class, working class voters that mitt romney doesn't have a prayer in the world of connecting with at the moment because he doesn't understand them. [ buzzer ] >> ok. time for the buzzer beater. 20 seconds. mitt romney says reading sci-fi is his guilty pleasure. you know, he is trying to make himself more human, right? and he wants people to like him. so which sci-fi book or movie would you recommend to him to make him more likeable? maria? >> he's reading books about aliens to make himself seem more human. i don't know about that, carol. but the books that came to mind are the themes are "the time
7:33 am
machine" or "back to the future" because what mitt romney is proposing is the failed republican economic policies that got us here in the first place will take us back to what frankly will be a horror movie, never mind a sci-fi movie. >> lenny? >> well, i think that mitt romney needs to actually look at two movies that are going to be cautionary tales as to what he's going to face in this election coming up. if he wants to go old school, "return of the jedi" because the master politician from 2008, president obama, will be doing all of his mag cal works in 2012. new school, something that's coming out this weekend, "men in black iii" because he has to beware of a black man with big ears trying to make people forget about the last four years. >> lenny, maria, thanks for playing today. >> thanks, carol. >> thank you, carol. police are calling these
7:34 am
three men anarchists saying they were planning to hit obama's headquarters in chicago. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. [ male announcer ] glucerna hunger smart. it's time to live wider awake. only the beautyrest recharge sleep system combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils to promote proper sleeping posture all night long. the revolutionary recharge sleep system... from beautyrest. it's you, fully charged. ♪ i can do anything ♪ i can do anything today
7:35 am
♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. and the human element can solve anything. have you ever partaken in a car insurance taste test before? by taste? yes, never heard of it. well, that's what we're doing today. car insurance x has been perfected over the past 75 years. it's tasty. our second car insurance... they've not been around very long. mmmm... no good! no good? no good! so you chose geico over the other. whatever this insurance is, it's no good. ok so you... got the mirrors all adjusted? you can see everything ok? just stay off the freeways, all right?
7:36 am
i don't want you going out on those yet. mmm-hmm. and just leave your phone in your purse. i don't want you texting, all right? daddy...ok! ok, here you go. be careful. thanks dad. call me -- but not while you're driving. ♪ [ dad ] we knew this day was coming. that's why we bought a subaru. ♪ supporters have dubbed them the great oh -- nato three, and insist they were set up and entrapped by police and are being subjected to cruel and unusual punishment. i'm talking about the three
7:37 am
suspected anarchists who were arrested on terrorism charges. brian church, vincent betterly, and jared chase appeared briefly in court but their attorney had a lot to say. >> we don't know all the evidence. but from what our clients have told us and our investigation tells us, this is a setup by the chicago police and whoever else is working this case. >> chicago police insist that the men are black bloc anarchists like the protesters you see in these pictures. you can see they cover their faces and are supposedly aggressive in their tactics. police say the men planned to attack chicago police stations, destroy police stations with molotov cocktails and planned to hit president obama's chicago campaign headquarters, but defense attorneys say it's a setup carried out by overzealous undercover operatives. with me now is an attorney with
7:38 am
a group that represents the nato three. welcome. >> thank you. >> you allege the three young men are being treated cruelly while in jail. how so? >> well, we understand they have been kept in solitary confinement without an ability to interact with other people for 24 hours a day, ever since they were detained. and we're just trying to remedy that situation at this point. >> is that standard procedure for someone who's accused of a terrorist act? >> i mean, i don't think that they necessarily need to be placed in solitary confinement just because they are accused of terrorism related crimes, no. >> you say these men were set up, but police say they had built four crude bombs. those bombs were confiscated. if the guys weren't serious about haveviolent action, why w they build these molotov cocktails? >> well, unfortunately the
7:39 am
state's attorney has not provided us with any information or evidence about criminal activity. they haven't even provided the search warrant that was used to raid the house from which they extracted or supposedly extracted these items. so we have not seen any evidence. what we do know, there were a couple of infiltrators, police informants, that were used, and there are suspicious activities that they were engaging in, possibly provocation, possibly manufactured crimes. so we're carrying out our investigation to get further information. >> so are you accusing these undercover police officers or operatives of convincing these three men to carry out these violent acts? >> well, there has been historical precedent to that fact. and we just don't know at this point. as i said, we're trying to get
7:40 am
more information. we're getting no help from the city or the state's attorneys office. and we'll see what happens as more information unfolds. >> i think that most people would believe if there's even a hint of violent action being carried out by so-called anarchy groups that action should be taken and that maybe operatives should go in and ferret out these people before they can do harm. >> well, keep in mind if it is true that these particular undercover officers are responsible for this operation, they have been part of the occupy chicago movement for weeks now, ingratiating themselves within these political activist circles. and they preyed upon people who were coming to chicago from out of town to protest against nato. and there's no clear evidence that these three folks intended to engage in violence when they came here.
7:41 am
>> we'll continue to follow the case. mr. hermes, thank you for being with us this morning. >> thank you. a female drill sergeant says the army suspended her unfairly just because she's a woman. she just got her job back, but she says that's not enough. for . 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. no annual fee. that's 1% back on... wow! 2% on my homemade lasagna. 3% back on [ friends ] road trip!!!!!!!!!!!! [ male announcer ] get 1-2-3 percent cash back. apply online or at a bank of america near you. ♪ but last year my daughter was checking up on me. i wasn't eating well. she's a dietitian and she suggested i try boost complete nutritional drink to help get the nutrition i was missing. now i drink it every day, and i love the great taste. [ female announcer ] boost has 26 essential vitamins and minerals,
7:42 am
including calcium and vitamin d to help keep bones strong and 10 grams of protein to help maintain muscle. all with a delicious taste. your favorite patient is here! [ dad ] i choose great taste. i choose boost. [ male announcer ] american innovation. 29 years ago, it helped us invent the minivan. ♪ today dodge grand caravan is the most awarded minivan ever. ♪ who knows where innovation can take us next? ♪ directions to th ♪
7:43 am
it was in my sister's neighborhood. i told you it was perfect for you guys. literally across the street from her sister. [ banker ] but someone else bought it before they could get their offer together. we really missed a great opportunity -- dodged a bullet there. [ banker ] so we talked to them about the wells fargo priority buyer preapproval.
7:44 am
it lets people know that you are a serious buyer because you've been credit-approved. we got everything in order so that we can move on the next place we found. which was clear on the other side of town. [ male announcer ] wells fargo. with you when you're ready to move. a dire forecast on the economy. a government watch dog says the united states will probably fall into another recession if certain tax hikes and spending cuts kick in next year. alison kosik is at the new york stock exchange to explain. hi, alison. >> everybody likes to call this a fiscal cliff. essentially that is when all of these legislative measures kick in at the same time. in this case, it would be higher taxes and spending cuts. this would take effect in january of next year. what it essentially means is that $500 billion would literally be pulled out of the economy next year. in fact, the congressional
7:45 am
budget office says it's going to be so bad, we could go back into a recession. let me run through what could happen all at once. for one, those payroll tax cuts we've been having lately, they expire next year. so do extended unemployment benefits, the bush tax cuts would expire. $1 trillion in spending cuts will also kick in. now all of this is going to happen automatically unless congress does something. but at the same time, critics say, you know what? congress just can't extend everything until eternity because that could add up to $7 trillion to our debt over the next decade, hurting the economy in the long run. here is the real kicker, carol. lawmakers aren't expected to take up all of this until after the election. so literally only weeks before all of this stuff kicks in. carol? >> so at least you didn't use the term "kicking the can down the road" because frankly i'm sick of that one. >> we'll use it soon, don't worry. >> how is this affecting the market? >> well, part of it is affecting
7:46 am
the market. the cbo warning is worrisome. that's weighing on the market. the dow down 160 points right now. but a lot of other things going on too. greece's former prime minister told the dow jones reporting that greece is thinking about preparing to leave the eurozone. also the world bank says growth in the asia pacific region is expected to slow. yesterday yet another group said that growth in europe is going to slow to a crawl. what you see here happening is that the global economy is not looking good. and you see investors running for the exits today. carol? >> alison kosik live at the new york stock exchange. checking our top stories now, today secret service officials are answering to congress at a senate hearing. a committee is investigating the incident in columbia last month where secret service agents hired prostitutes. the director said that security was never compromised. former first lady nancy reagan is following doctor's orders not to attend big events until she gets better. she backed out of a big event
7:47 am
last night at the reagan presidential library that featured paul ryan. she fell and broke some ribs back in march and has been slow to recover. this just in to cnn. these are live pictures out of miami. pretty nasty there. heavy rains have caused some serious flooding in miami dade county. the miami area has been pounded with nasty weather since yesterday. they have had record amounts of rain, about 5 1/2 inches, something that has not happened since 1901. [ female announcer ] the power to become a better investor has gone mobile.
7:48 am
with features like scanning a barcode to get detailed stock quotes to voice recognition. e-trade leads the way in wherever, whenever investing. download the ultimate in mobile investing apps, free, at e-trade. with the bankamericard cash rewards credit card, we earn more cash back for the things we buy most. 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. no annual fee. that's 1% back on... wow! 2% on my homemade lasagna. 3% back on [ friends ] road trip!!!!!!!!!!!!
7:49 am
[ male announcer ] get 1-2-3 percent cash back. apply online or at a bank of america near you. ♪ [ woman on r♪ bum-bum,stinct ] a bank of bum-bum, bum-bum ♪ ♪ bum-bum - ♪ ai, ai, ai - ♪ bum-bum - ♪ bum-bum, bum-bum - ♪ [ ice rattles rhythmically ] ♪ bum-bum, bum-bum, bum-bum ♪ ♪ [ imitates guitar noise ] ♪ [ vocalizing up-tempo heavy metal song ] ♪ [ vocalizing continues ] ♪ [ all singing ] the redesigned, 8-passenger pilot. smarter thinking. from honda. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind...
7:50 am
mom and dad, i have great news. is now providing answers families need. siemens. answers. i mean, you'd think the mirror ball trophy was a super bowl trophy. they're cute, though, aren't they? green bay packers fans went nuts the moment that wide receiver donald driver was crowned king of "dancing with the stars." "showbiz tonight's" aj hammer is here to fill us in. he has another trove tphy to ad his collection. >> and he is very, very proud of it. he made it clear to us that getting this trophy was a big, big deal to him. "showbiz tonight" was right there with him backstage, and he told us just how big a win this really was.
7:51 am
let's watch. >> i feel the same way as when i won the vince lombardi trophy. you have a numb feeling, and it will soak in tomorrow, that we are "dancing with the stars" champions. wow. >> wow is right. and he says he already has a spot reserved for that mirrorball trophy right next to his super bowl trophy. that's how important it is to him. driver is the third nfl star to win "dancing with the stars." interestingly enough, all of them have won super bowls as well. i'm not sure, however, they would agree with driver's comparison. >> maybe not. i loved his celebratory dance, though. onto another story. the casey anthony saga, made for tv movie, and now we know who will play casey anthony. >> yes. although you may not know her name, she is a canadian actress. holly devo is her name. she is relatively unknown. has a few small screen credits. this could be a big break for
7:52 am
her. the movie "prosecuting casey anthony" is based on a book all about the trial call "imperfect justice." she will be starring opposite a well-known guy, the great rob lowe, who is cast to play the prosecutor. i think it makes sense to cast a relative unknown in the part of casey anthony so people don't have any kind of familiar baggage or anything to take along as they watch. >> totally get that. aj hammer, thank you. >> you got it. looking for your fix of breaking entertainment news? aj's got it. watch "showbiz tonight" at 11:00 p.m. eastern on hln. in today's "daily dose," if you're thinking of getting a genetic test to see if you're likely to get colon cancer, diabetes, or alzheimer's, hold off at least for now. that is the advice from the american college of obstetric n obstetricians and gynecologists. the group says the tests are not ready for primetime and need more work to be accurate. it does recommend genetic tests for other things like breast
7:53 am
cancer and cystic fibrosis. an army sergeant was suspended because she was supposedly too tough. but she says the real reason is because she was a woman. [ female announcer ] did you know the average person smiles more than 50 times a day? so brighten your smile a healthy way with listerine® whitening plus restoring rinse. it's the only rinse that makes your teeth two shades whiter and two times stronger. ♪ listerine® whitening... power to your mouth.
7:54 am
[ engine turns over ] [ male announcer ] we began with the rx. [ tires squeal ] then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. see your lexus dealer.
7:55 am
7:56 am
the first woman commandant of an elite drill sergeant school says she was suspended from her position just because she's female. and it turns out she might have been right. here's jason carol. >> reporter: we first met command sergeant major theresa king three years ago at fort jackson, columbia, south carolina. what are you looking for? because it all pretty much looks like everyone is exercising to me. >> i'm looking for attention to detail. >> reporter: the first woman to lead the army's elite drill sergeant school, a symbol of physical and emotional strength. that was then.
7:57 am
>> when i'm going through this devastating situation, it's important for me to set the example. and that's where i'm at. >> reporter: now king faces the toughest battle of her 32-year military career. she filed a formal complaint against the army charging her superiors mistreated her because she's a woman. >> i'm not in a position where i can say what should happen to my superiors. but i will say they need to be held accountable. >> reporter: king was suspended following complaints of micromanaging and toxic leadership, factors she says would not have been questioned if she were a man. some rank and file question her lack of combat experience, but as a woman king can't go to the frontlines. king, who earned top scores for physical fitness, says she was punished for rejecting unfit candidates. >> i think drill sergeant should be some of the highest standard bearers in the army. and that's the only way we can make soldiers. >> reporter: king submitted a
7:58 am
19-page rebuttal, describing his accusers as disgruntled because they face disciplinary action. two of her superiors oversaw a six-month investigation. during that period, king was not allowed to have any contact with students or staff, cut off, she says, from her military family. >> i think i lost touch of consciousness because it was so painful. >> reporter: king sought help from attorney and state legislature james smith, also one of her former soldiers. smith says she believe the in her then, and now. >> her suspension is and was unwarranted. now the point is, and what we're asking, is for a review of how and why all of this took place. >> reporter: earlier this month, the army found king's suspension was not warranted, informing her your suspension is lifted. smith says not good enough. an army spokeswoman saying neither calpannia nor luongo
7:59 am
could comment. the rein statement came enough judge time for the change of responsibility ceremony, the official transfer of power. >> there were some days i didn't feel like i wanted to live. but i believe in hope against all hope. >> reporter: supporters surrounded king who says despite everything, she'd serve the army again. >> i want to make sure that this does not happen to another person. >> reporter: jason carol, cnn, columbia, south carolina. we asked you to talk back on one of the big story of the day. the question, do ceos make good presidents? this from jason. the president needs to be a little bit of everything. more of an educator or a counselor. he is more running a school of over-zealous children, congress, than a business. this from sheila. they can make good presidents but the focus