over balmoral -- who the hell wrote this script -- as the afternoon goes on. but a cold day everywhere with temperatures of just 8 celsius and a brisk northeasterly wind. thank god it's not a bank holiday. >> oh, smashing. the new prince charles does it all. he quips about bank holidays and lay down the fat beats -- i will never use that phrase again, i promise. the point is out with the old, in with the new prince charles on the ridiculist. thanks for watching. "erin burnett outfront" starts right now. outfront, facebook sued, yeah, it's had a tough week. were investors deceived? and potentially toxic garbage from halfway around the world, from japan. from fukushima washing ashore in the united states. and my childhood sweetheart. a man that all of you know. he's outfront tonight.

-- captions by vitac -- www.vitac.com i'm erin burnett. vultures dive bombing the carcass. just an image. makes me think of the field growing up, dead deer, entrails everywhere, that's what it looks like for facebook. at least three lawsuits filed in connection to the ipo. and plus investigations by the securities and exchange commission and the massachusetts secretary of the commonwealth and of course headlines like these on the front pages. the best went to cnn money. oh, zuck. inside facebook's fumble and "the washington post" called it a debacle. here's where the stock closed today, at $32 a share. down $10 from where it opened on ipo morning at $42. that means it's lost a quarter of the value since it opened. that's pretty stunning. you say how?

how could one of the most anticipated offerings in american history, when i say anticipated in history and the biggest in terms of size in this country's history, one that was supposed to invigorate and make the stock market a place for regular people go so wrong? facebook's numbers don't appear to add up. there are two things that are crucial to know. to see if the billions in dollars of cases against facebook and its bankers are going to hold up. one, facebook amended the offering to the public. it said it was struggling to make money in mobile devices where more and more people are accessing the facebook accounts. this caused some analysts to slash the estimates of facebook and how much money the company could earn. now, the second thing. morgan stanley the bank responsible for pricing the ipo along with facebook management made the decision to increase the price and the size of the offering. this was not a small decision. they increased the price by 52%

from the bottom of the range and the size by 25%. this is stunning. and they did it after facebook had said it wasn't earning as much money. just in case i'm not clear here, they increased the price of something just when the world learned it wasn't as valuable as it had seen the day before. that's pretty incredible. people familiar with the situation at facebook tell me that there was so much demand that they did price it right. that they're sure they did it right, that the blames on nasdaq which completely blew the opening of the stock. now, that may be true. but the question is was there fraud, was there something illegal? that could cost facebook and the big banks billions and billions of dollars. one lawsuit says yes. facebook shareholders filing a class action lawsuit against mark zuckerberg and his top team and the underwriters of the ipo. five banks are named as defendants including the one in charge. and that name there to look at is morgan stanley.

all the others being sued, but ultimately the one that was responsible is the lead and that's morgan. investors claim they've lost $2.5 billion since friday. paul callan and john avlon are here tonight. paul, i've talked to a lot of s.e.c. attorneys today and i've talked about the specific allegations. do you think this case has merit? basically it's saying that facebook they've changed this -- this was a very material thing to say look, we can't make money in mobile and it's the future. they amended it. that was given to everybody. then morgan stanley and the bank said look this is going to hurt how much this company is going to learn and not everyone was made aware of that. fraud? >> well it's a close question. it does make out, yes, you know, a claim of fraud. but i think we have to step back a little bit and say that every time there's a public offering on a company like this, the

class action lawyers swarm around it and file lawsuits because the legal fees that are collected in the case like this are staggering. multi, multimillions of dollars to fees to the lawyers. so there's incentive to sue. we have got to see what the discovery reveals in this case and we have really got to see more details to know if there is a case here. >> all right. let me bring in robert wiser, the lawyer representing the plaintiffs. let me ask you sir, what are you alleging that happened here is wrong? facebook did file that amendment, that was available to everybody. and the investment banks as far as my conversations with s.e.c. attorneys and the s.e.c. today abided by the law. >> well, good evening. and thank you for the opportunity to address these very serious allegations. with respect to the allegations in the complaint, i think mr. callan hit it on the head.

it will be very interesting to see what discovery reveals in the case. and i would like to correct an important point of law that perhaps you or maybe some of the viewers haven't grasped. that is we don't have to prove fraud to succeed in this case. that's a critical distinction in the law that comes up specifically in connection with an initial public offering of a secondary offering of stock. if the plaintiffs can demonstrate that there was one material misstatement or omission in any of the offering documents, they're entitled to receive monetary damages. >> so what was left out? so okay, let me just ask you what was left out. they did file an amendment talking about the mobile issue and a few days later the banks that were underwriting it, they did tell some of the clients they think that will affect the earnings. that wasn't made available to everybody. but btig research available to everybody you can log on, get a password.

you don't have to pay for it. says the exact same thing, this is a problem, we would only buy it at $31.50 a share, so it seems to me the information was available to everybody. the concern on wall street was. >> well, the question is when is the information available to everybody? and what were the specific representations made in the offering document itself? because that is the document that investors are allowed to rely on -- or rely upon as a matter of law. and it's interesting because now there are lots of stories circulating around regarding either everything from financial blogs to analyst reports, questioning the value of the -- questioning facebook's valuation and where a good entree point is for investors. but where were the representations in the offering document? where were the disclosures

regarding certain select morgan stanley or jpmorgan or goldman sachs clients, where were the disclosures that certain privileged clients of those banks -- >> well, that's what -- okay. i mean, this is something that maybe you're going for a broader change in the law, because my understanding of the way the law is if one of the banks is the underwriter and you're a research analyst that works that for that bank, you're not allowed to publish anything, so that's the law. when you have a view on the stock that's all you can do is talk to the people on the phone. this was in a research report, available to everybody. nice the prospectus, right? the s-1, about the ad issue and mobile devices. so i'm just trying to understand where -- people are pissed off,

i get it too, but that's a different from having facebook paying billions of dollars. >> right. understand that to the extent that a lot of the media over the past few days has made the point that the offering was bungled in some manner, either because it was oversubscribed or it wasn't priced appropriately, and it's important to understand that that is not our claim. >> right. >> and to the extent that morgan stanley or any of the other underwriters were negligent, that's not an actionable claim under the securities laws. i would agree with you in th that -- to the extent that there were tactical decisions that were made in connection with the underwriting process. and those decisions were made in good faith, they're not actionable. you're right, we are specifically challenging the statements regarding trends in

the company's business, the company's historical earnings. >> right. >> likely future earnings, and there really are two different issues here. just to be perfectly clear and i talked about this somewhere else earlier today. that there really are two prongs. one is the specific representations or omissions in connection with the offering document. then you've got the regulation -- the reg f-d issue which is a completely separate issue. in some ways, those reports based on what's out there in the public domain right now are actually more troubling, at least from my own perspective. >> right. >> in that that -- the reason why you have that -- that rule, that rule is the product of sarbanes-oxl sarbanes-oxley, the otherly ear frauds. it's the worst part of wall street doing business in the same old tired ways. >> right. >> that hurt investors, hurt

consumers. my personal opinion is that reg f-d has been effective. >> right. >> has been an effective deterre deterrent. >> thank you very much. paul, interesting point for what he raises. reg f-d, not have an analyst say rosy wonderful things about an underwriting is a pig or other things if you remember what ten years ago. while they're trying to sell it. they're saying we don't like this thing, bankers are trying to sell it and now it's being called a conflict of interest. >> when ordinary people look at this, this was a company founded in the harvard dorm room. ten years ago. short period of time. >> yes. >> now they have 443 million subscribers worldwide, and does anybody really think that it's not a risky investment? i mean is there somebody out

there who is buying it for $38 a share who isn't rolling the dice that maybe it's going to double or triple or quadruple? are they relying on the papers? all this lawsuit is is an attempt to use these federal regulations to generate really a lot of legal fees at the end. >> i mean, you know, buying facebook, anyone would have done it. did know it was risky. it was going public at a price that really valued the company at 26 times the revenue. google went public at ten times, so it was very expensive. nonetheless, the performance of this has taken the bloom off the rose. anyone who was hoping this would get the little guy book in the market, believing again, this is a rigged system. >> and that's the larger point is that people do feel like look, this is high finance. we hoped for some transparency. is this system rigged against the little guy? but a lawsuit making the case that this is a class-actson lawsuit seems more a symptom of a lawsuit-happy culture than real damages. but it as a place where the little guy can play rather than

the system being rigged against them, that's a different thing. it's not legally actionable, but an issue of perception. >> that's my issue with it. you can look at it and say the perception and say it doesn't add up. you want everybody to feel they can participate and this was supposed to be one of the democratic ipos and it was not. next, mitt romney calling the civil rights issue of our time. we'll tell you what it is. by the way, just in case you were wondering it's not gay marriage. tonight, the tipping point. war or peace with iran? will the country cave or talk? crucial talks right now in baghdad. we have obtained an e-mail exchange between george zimmerman and the police chief of sanford, florida. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities --

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our second story outfront, mitt romney coming out what he says is civil rights issue of our time. nope, nope, what you're thinking. whatever it is i bet it's not what you're thinking. it's education. who's going to fight with you on that? all right, here's what he's saying, he's defending choice

for parents. taking on teachers unions for the wrong priorities. he says education is the civil rights issue of our era. >> i'm going to give the parents of every low-income and special needs student the chance to choose where their child goes to school. for the first time in history, federal education funds will be linked to the student so that parents can send their child to any public or charter school of their choice. >> john avalon, reihan salam and jamal simmons are here. when he spoke, he didn't use the word voucher, and people have a passionate feeling about it whether they thought it or through or not. but how is it going to fly? >> you have seen this in president obama's race to the top proposal. get structural reform so one idea is lift caps on charter

schools and one important thing mitt romney said is let's be sure that digital learning options aren't prohibited. you have a lot of unions at the local level saying hey, we want to fight virtual charters and other things that are giving more parents more nontraditional choices. >> what do you mean, virtual? online classes? >> absolutely. florida offers a ton of supplemental classes. it's expensive -- >> these are supplementary. not instead of? >> well, in some cases instead of as well. but -- >> i don't know about that. >> it allows the option to expand. for some kids that's going to be the right option. not all, obviously. >> supplemental cob -- >> absolutely. >> john, you think this voucher proposal can work? >> i think it's a bold proposal by mitt romney. this is a bold policy in terms of what he's for, school choice. the democrats are backed in. president obama has a pretty good record on some issues like merit pay for teachers, but there's no way a democrat can

back school choice at the federal level. mitt romney just did. >> jamal, so vouchers obviously would be the operative word, but when you look at the other things that mitt romney is for, charter schools, more accountability for teachers, school report cards. that's what president obama wants too. so really are they all that different? >> you know, they're not all that different except in one respect. i'm glad mitt romney recognizes this challenge because it is a huge challenge and a challenge that we face. it is the civil rights issue of our time. the problem is mitt romney's plan actually doesn't do what he says because it doesn't have any sticks in it. all carrots, no sticks. what happens to the school that are left behind? so let's say that every child is able to leave and go to a new school. what happens to the kids who are left? you have got to be able to turn those schools around. if you turn the schools around, you need people who can go into the schools and make a difference. so i was talking to my brother today who is a middle school principal in washington. he says the problem is you don't

have enough teachers and principals who are prepared to go into the high-risk, low performing schools and be able to make a difference. you need better supply. so he's real -- if i were mitt romney and the republicans i would focus more on getting more kids out of these education schools, out of college who can go in there and make a fight. >> you have to be able to fire the people who aren't good. >> well, look, you have different schools pursuing different strategies. it say unlike jamal that the big difference between president obama's strategy and mitt romney's strategy is that one thing that president obama did with race to the top is have administrative guidelines that say need you buy-in from union locals for us to like your proposal at the state level. so the states that did win that race to the top money were states that got 100% buy-in from teachers unions. guess what? those are not necessarily the most transformative approaches to education and also to improving the supply of really high-quality schools. >> yeah, but reihan, you -- look, teacher's unions are there for a reason. teachers know education.

it's okay if you have teachers unions that want to participate. what you did is you got to the teacher unions to buy into the proposal -- >> 100% buy-in -- >> let me finish my sentence. instead of having a wisconsin situation where the teachers and reformers are fighting each other you have everybody on the same page. >> colorado and in louisiana, you had tremendous, dramatic gains among kids. the local teacher unions did not support the reform proposal and i get where you're coming from. but the thing is a lot of the union locals are very resistant to reforms that have been demonstrated to work. >> all right. >> well, you have to. >> sorry. this is an issue i think you do have to -- whatever side you're on, you sure as heck got to fight like chris christie, anybody? okay. an alarming discovery in the waters off this country's coast. what is washing up? we're getting ready for our very special mysterious guest.

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is that rain? >> yes, it appears to be raining. >> oh. >> i found a number of restaurants with tomato soup that deliver. >> good. because i don't want to put on real shoes. >> that's zoe deschanel promoting the latest siri phone. you say, hey, i'm looking for a deto detour, i don't know, i'm looking for a date and she tells you where to go. supposedly she also dictates text messages, but ibm has a problem with it. you say the text and it dictates it and the problem is when you say the text siri sends it off somewhere to get transcribed. it gets funneled to a center like this one in maiden, north

carolina. an apple data center. ibm says this is a big problem. a big security issue. let me tell you why. because of this. ibm is one of several companies that has embraced the whole byod trend. it's bring your own device. it used to be when you got a job at a company, you got a blackberry. that was the way it worked. but that's not so true anymore. blackberry has been losing fans. and employers -- employees want to use their android or iphones at work. if y if y if you have a byod policy at york you can use it. they say you can't get this app or you can't download this, they have a big problem. they have a big problem with you doing that. sorry, there you go. you have to wipe it remotely. there's all kinds of problems you have on the devices when you do that. so that brings me to our number tonight -- 75. this is pretty incredible. the percentage of companies that allow people to bring their own devices to work. if you work at one of those

companies your employer like ibm can be really worried about siri, what are you telling her to text? is it salacious? people can read it. and still outfront, potentially toxic materials from fukushima are now finally over a year later washing ashore on the west coast of the united states. we sent a reporter outfront to investigate. okay, team! after age 40, we can start losing muscle -- 8% every 10 years. wow. wow. but you can help fight muscle loss

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welcome back to the second half of outfront. we start with stories we care about where we focus on the front lines. tonight, a video from al qaeda urging members to commit what it calls electronic jihad. it calls for cyber attacks against government networks and things like the electric grid. csis tells us that the elements of al qaeda are tapping into an existing pool of extremists who may find cyber attacks a more dangerous or even more convenient way of engaging in attacks that can kill a lot of people.

a group of senators from both parties on the homeland security committee say the video underscores the needs for cyber security standards in this country. now, cnn has obtained an e-mail written by george zimmerman to sanford police chief bill lee in september of last year. he highlights the efforts of a volunteer that helped him with the neighborhood watch program at the retreat at twin lakes. he writes, in the past, i have not had a positive perspective of sanford police department. due primarily to the sher mon ware i think dent. that incident is a 2010 case in which a black homeless man was assaulted by a white sanford police officer's son. our own legal analyst paul callan said that the defense will likely say this demonstrates a lack of racism in zimmerman's ordinary life. at the time when he had no motive to lie. well new detail is showing oil supplies in the united states are at a 22-year high.

the energy's weekly report shows crude supplies rose to 382.5 million barrels. that's one of the reasons oil prices fell below $90 today. chris jarvis of cap rock tells us part of the reason for the build-up in supply is that refiners have cut back in production. a lot of you may say what's going on? why are prices at the pump not dropped as quickly? well, they do take a lot longer to drop. gas stations don't like to do it. homeowners are taking advantage of record low mortgage rates. the mortgage bankers association index applications rose 3.8% last week. another record low for a 30-year fixed rate mortgage. we came across this from bankrate.com. they identified high-yield checking accounts that paid 34 times more than the current national average for an interest checking account. the yield was all of 2.05%. but that is really high in the current interest rate environment.

you might though in order to get have a certain number of direct deposits. it's 293 days since america lost the top credit rating. what are we doing to get it back? we have got more data today, new home sales rose 3% in the month of april. now the third story, hope fading fast for iran's nuclear program. it was a tipping point and i it may be. the second round of negotiations between iran, the united states and five other western countries unexpectedly spilled into another day. reports are that neither side is budging. now, the united states and its allies want iran to give up any uranium they have that has been enriched. they want them to stop enriching. the real debate is enriching to which grade? 5% or 3% or 20% weapons grade? they want to dismantle an underground bunker used to create nuclear material. in exchange, the west would ease

sanctions that have severely damaged iran's economy and are scheduled to get much, much worse in about a month. will it lead to military action? art keller a former cia spy and lieual garrett, a former specialist for the cia. you guys know more about this than anyone. raoul, will these talks succeed? >> in the short term, absolutely not. i mean, i think what they're feeling out now and they have been doing that in preliminary meetings for a month is whether -- how far the iranians are willing to go in stopping the enrichment program and the iranians are trying to figure out whether the west will essentially agree to allow them to keep their low enriched uranium even though that quantity is up to over 13,000 pounds and could be converted into at least five nuclear weapons. >> so you're saying they could reach a deal where they say, okay, as long as they keep that

stuff they'll start up and move quickly easy, right? >> not only just keep it. there's no sign the iranians are willing to stop enriching to 3.5 to 5%. as long as they continue to do that, they're amassing a quantity of uranium which can be fairly quickly converted into highly enriched uranium and bomb grade material. >> art, what are they doing right now? i mean, you were a spy, so what sort of intelligence do we really have? i mean, i remember asking prime minister netanyahu a month ago and how do you know what iran is doing and he gave an ominous pause and said, we know. how does israel or the united states know? >> well, i don't think we have -- >> art, go ahead. >> i'm sorry. we really know through a combination of factors. of course, to the extent you can, you get -- you get inspectors to look at the facilities that are publicly declared. that tells you something. around -- and really you get

most of your information by watching what falls into a program. in the same way astronomers figure out what's in a black hole by figuring out what falls into it that's the way you map out what's going on in a weapons program. you do try to recruit human spies but iranian nuclear physicists do not grow on trees. so most of the information you get you get from a combination of inspections, signals intelligence and other forms of intelligence. but we do have a fairly good read on that they're doing simply because nuclear weapons require industrial scale facilities. those are pretty hard to hide. >> right. i guess the other question then would be in terms of how far they're going with enrichment, this is a real problem. art, i don't understand how it will get resolved because iran says they'll never stop enriching. they're enriching to 5% which could be used for medical uses

and israel has said categorically they won't allow iran to enrich at all. does that mean if they keep enriching, israel will strike or will they be called out on a big bluff? >> well -- >> i'm sorry. >> it would be difficult for israel to strike iran's nuclear facilities in the same way in the past they have struck iraq's and recently more recently syria's. so it is a much harder nut for israel to crack and they have to know that. they may be talking tough solely to get as much concessions as possible. it is concerting that 20% level i think raoul is correct, it really allows them to leapfrog ahead from the moment they decide, okay, we'll go for the bomb which means withdrawal from the nuclear proliferation treaty and enclose -- and close facilities from inspection. if you have a big stockpile of 20% you can get there much faster in a matter of, you know,

a month or a few months. if you only have a stockpile of 5%, then that timetable is greatly enlarged. so that's a safety factor that i'm sure we're going to be pushing for if we don't push for complete cessation of enrichment. >> all right. we'll see what happens. if they have the courage that the west may not. talks continue into a second day. it was supposed to be one day. we'll see if that's a break through. fourth story out front, toxic garbage floating towards this country has set off major alarm bells. parts of building and cars and other wreckage has been coming across the pacific ocean ever since fukushima and now are washing up on american beaches. it's all debris from the tsunami that slammed japan over a year ago. our casey wian is in alaska where people are not only worried about what they see coming ashore. as you can see it's shocking, but they're more scared about what they can't see.

>> reporter: a large haul of black cod arrive in the sea food company in alaska. here it's processed and shipped all over the united states, but nearby the sea is delivering a potentially toxic threat. one and a half million tons of debris from last year's japanese tsunami has begun washing ashore. the greatest fear is of the unknown contaminants it may contain. >> there's always concern. is it going to be a few buoys or going to be oil, petroleum? boats? houses? i have always been one of those guys that it's like you deal with the reality as it approaches. >> but others are worried about the threat of toxic materials even radiation, contaminating alaskan fish. >> i captured a lot of them with geiger counter. none are hot. no radiation whatsoever. >> reporter: government and

university scientists say it's highly unlikely that radiation will be present in tsunami debris. one reason -- most of it was already at sea before the fukushima reactor leak. still other toxins may be present in waters that provide 90% of the nation's wild salmon. >> now, this is not something you want to dump in your herring spawning area. >> reporter: the tribe has been fishing these waters for centuries. >> there's a king in the net -- a little bit on that. >> reporter: 400 of the 650 residents are klinket. they're pleading for federal help. >> if it begins to disintegrate there, the birds will eat it. whatever happens in the air or ground or sea will end up in our bodies. >> everyone likes to go and have a nice salmon steak. well, this is where it's coming from. that's why they should invest to

keep our waterways open so we can catch this fish. >> reporter: and keep these fish safe to eat. >> casey is live from alaska tonight. how does the debris actually get into the food chain? >> erin, several ways, but one of the ways that they're most worried about right now is styrofoam buoys that are breaking up into tiny pieces. they're eaten by small fish which then think they're full so they don't get the nutrients they need. they can get sick and die off or get eaten by bigger fish that we catch and eat. erin? >> all right, casey wian, thanks. outfront next, a mystery guest. one of my childhood sweethearts. who do you think i am, quicken loans? [ spokesman ] when you refinance your mortgage with quicken loans, you'll find that our rates and fees are extremely competitive. because the last thing you want

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and the community amazing things happen. to me, that's the membership effect. i tell mike what i can spend. i do my best to make that work. we're driving safely. and sue saved money on brakes. now that's personal pricing. we're back with tonight's outer circle where with ereach out to our sources around the world. tonight we go to northern afghanistan with more than 120 girls were imprisoned in the school. attackers used a spray at the school which resulted in fainting, dizziness, vomiting. the the latest in a string of poison incidents targeting girls schools in afghanistan. i asked if the taliban is behind this attack. >> reporter: erin, i should

point out that the taliban have not claimed responsibility for this, so afghan officials are presuming it was them. although, there are many extremist groups who might choose to target women in this way. they deem women getting an education as abhorrent. therefore, yes, target afghan children who go to government-run schools. we are seeing the attacks occur reasonably frequently and it paints a really bleak picture for the future of the country's education country. and indisputably as nato troops start to leave. >> thanks, nick. now our fifth story outfront. >> when i was little we would watch "the news hour" and dan rather. i was 6 i would go up at the end of the night and give dan rather a kiss good night on the screen. everybody found out at school,

and i won't say her name, because she's a nice girl, she outed me about it. it was one of the most m humiliating moments of my life. >> and dan rather is here with me. i remember when you were on the screen and i would walk over and it is such an honor for me. >> i'm sorry we didn't have field television at that time. >> i mean, it really was.

stop attacking jeremiah wright. this stuff has got to stop. >> nauseating. he said it with such -- such passion. but it really is, i mean, what do you think it is? is it super pacs like so many people want to blame it on or -- >> i think it's two things of cory booker who i do know.

i know him and respect him and the job he's done as mayor. he has been absolutely terrific. but i think the two thing at play here. one, i think he really believes it because cory booker he came from this world -- part of this world, the financial world, he knows what it is. the second is, no one can duck or dodge around this. he gets a lot of campaign contributions from the same people who are being, if you will, criticized, in the romney camp. he gets funds from them to do good work in his city. so he's a guy on a tight rope. now he's bowed back a little bit which doesn't surprise me. he's not the only one who knows the financial world and says be careful here about criticizing these people. criticizing when they really deserve it, but careful not to make it a blanket criticism. >> all of this sort of leads to what's the truth. the ads that we see in the politics, it's frustrating. there's blatant lies in them. in your book, you write about what's happened in the media. and i'm curious about what you think about it. about the polemics of the media.

there's way right now to surround yourself in life, hearing only what you want to hear and only points a view that you agree with and only facts that support your point of view and never being challenged. i wonder if you think we're responsible for the ugliness in congress and the campaign? >> i do. those of us in the media have in some important ways we have lost our guts or if you like the metaphor i think we need a spine transplant. when people lie, when it's an outright lie, they need to be held accountable for that. the press in its role as watchdog should hold them accountable. we're afraid to do so. we're afraid to make anybody uncomfortable much less deal in controversy. a lot of it stems from what i call the corporatization of media. huge conglomerates who need a lot of things out of washington, they do affect news coverage. >> yes. >> instead of digging in investigative reporting it's

much easier to quote paris hilton or a celebrity. that's what i call the trivialualizati trivialization of the news. >> in your book, you talk about the incident, the national guard report and george bush's service. you stand by that report to this day. >> i do. i stand by it because the core of the report is true. president bush has never denied it. one, he got in national guard through the influence of his father in order to make sure he didn't have to go to vietnam. that's the truth. secondarily, he it was a gut check for us because the story was attacked on all fronts. >> right. >> but those two things are true. they were true then and are true now. >> well, dan rather, thank you very much. a hero of journalism. i hope my mother is watching

tonight. >> tell your mom i appreciate it. >> thanks to dan rather. still outfront, millions turned out for first day of egypt's historic elections. what role will extremism play? i'll show you something i have obtained from an eighth grade textbook in cairo that has me worried. no matter where you go.

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so, voters stream to the polls in egypt today. they have the opportunity to choose a president for the first time. there's lots of questions surrounding the vote. the crucial question because a couple weeks ago, i met with egyptian friends of mine. their daughter attends eighth grade. this is a page she ripped out of her history book. at the bottom of the page are lessons students are supposed to learn from the battle wrk among them, muslims win by the strength of their faith, not by the strength of their numbers. then the line highlighted in pink by my friend's daughter. trangsilatesed into english, treason and treachery is key attributes. this is the current textbook for eighth graders in schools in cairo.