there's questions about his fate and the u.s./pakistan relations. word that money from generous americans is not exactly going where it's supposed to. it's thursday, may 24th and "starting point" begins right now. welcome, everybody. let's get right to the breaking news this morning. a person is in custody in the etan patz case. you might remember this case. 6 1/2-year-old boy who vanished more than 30 years ago. the case happened back in 1979. he has never been found. he was walking himself to the bus stop for the very first time, two-block distance. he never returned home. he has been declared legally dead. no charges were ever brought in the case. new word this morning that someone is being held. he is not being called a suspect. ashleigh banfield has more for us. ashleigh? >> we're trying to get as many details in as we can. the police commissioner here in new york city is releasing this big nugget of information, that

apparently there is a person in custody in relation to this case, someone who has apparently made it clear that he or she has a connection to this case. as you mentioned, man, this is an old case. 33 years old, etan patz went missing in a lower manhattan neighborhood, never to be seen. no one could crack this case. several weeks ago, the investigation reopened into a carpenter, a carpenter who had a carpentry shop just down the street from where etan patz's family lived. they, in fact, broke open the floor and removed a whole bunch of evidence from that lower manhattan building that has since changed into a number of other different kinds of venues and didn't find anything. they removed not only the floor, but dumpsteres near sdumpsters . nothing ever came of it.

we are being told that is not the person in custody at this time, just that the nypd has a person in custody who has implicated himself, soledad, in this 1979 disappearance of etan patz. also no comment from the parents of etan patz. they've remained extraordinarily quiet through those most recent developments and, obviously, everyone wants to know what the further developments are. the commissioner ray kelly says details will be released later on this morning. we'll continue to watch that. >> we will continue to watch that. ashleigh, thank you for that update. >> lawsuits filed over facebook's botched ipo. morgan stanley, several other underwriters are named in these lawsuits. lawyers claim that inside information about the company was given to banks and big investors but not to the general public. facebook's stock closed up yesterday for the first time since the ipo on friday. it's now at $32 a share, down 15% from its closing price on day one. so, how did one of the most

anticipated ipo's in history go so wrong? according to the lawsuit, facebook is executives told the underwriter banks to lower the revenue projections for the company. the banks relayed this information to certain clients but not to average investors. facebook's statement says we believe the lawsuit is without merit and will defend ourselves vigorously. morgan stanley says about the same. congressional committees in the house and senate are looking into the launch of facebook's ipo. joining us this morning, connecticut's former attorney general, where he sued companies like countrywide financial, one of the major ones we remember. nice to have you with us. >> thank you. >> the key question, of course, were some investors given some information that other investors were not given? what potentially was done that was illegal? >> what potentially was done

essentially was that material information about revenue earnings, forecasts about the growth of the company was shared with some investors, big institutional investors, clients who were favored by the analysts of those underwriters, like morgan stanley, and not given more broadly to the retail ordinary investor who obviously was seeing and reading the hype. this was one of the most ballyh ballyhooed prospectuses in recent history. the question about actual revenue and earnings was shared selectively with the few. >> facebook did, in fact, file an amendment in their prospectus which talked about those

concerns? they also told 20 analysts to alert them of their lower second quarter sales estimates. and that was communicated apparently to the major investors. that's the kind of thing that's done over the phone, correct? it's not sent out by e-mail. how would you get that information to, say, people who are going to be trying to purchase facebook online or the small, regular folk investors? >> one of the reasons that there really needs to be an investigation by sent at bank committee and by congress is that the law may have to be changed, because those -- the conference call, for example, occurred on may 9th where the underwriters were told by facebook, you need to revise your earnings forecast down. >> second quarter will be not as good as we thought? >> exactly. >> this could be a problem. red flag. only some people got that information? >> only to some people, not the general public. material information that should have been shared more broadly and shouldn't oral or verbal

communication be treated the same way as written prospectuses filed with the government? >> so how would you -- what you're saying is that it's possible that there was nothing that was illegal, but still the system has to be changed? >> the question now will be determined by the sec, financial institute, regulatory authority, lawsuits. but there may be a need to change the law, to make it more exacting so that the playing field really is fair and balanced. and everybody gets the same information at the same time. by the way, you know, this ipo, ironically, was supposed to be very fair to the little guy, to the retailer. the facebook hype was that the retail offering was supposed to be reaching out to the ordinary investor and made available to him or her. and, second, you know, here the institutional investors may have received that kind of red flag or early warning in ways that

came much more directly from facebook itself than customarily occurs with the company. >> morgan stanley says they followed the same procedures for the facebook ipo that it follows for every ipo offering. what kind of culpability is morgan stanley and the other underwriters looking at? >> the culpability for losses to investors but also potential penalties if the sec investigation goes forward and they are held accountable for failing to disclose the kind of information that should be available, more broadly to the public, misleading and deceptive practicesn under the sec laws. that kind of penalty, if it ever occurs, is way down the road. what we need to examine right now is does the ipo process work for everyone fairly? is the facebook poster child, so to speak, an illustration of why

the laws need to be made fairer, more exact? >> the secretary of the commonwealth of massachusetts, william galvin had to say this. >> if we're going to attract investors back into the marketplace, there has to be a sense of fairness, that everyone is even, that my money is just as good as yours. investors will not feel that way if they think certain people are getting insider information and others are not. >> so, is he both talking about fairness, which you mentioned. he also mentioning inside information. fairness is not necessarily something that you can sue somebody over. but inside information definitely is. how do you think that this facebook ipo, just from the legal standpoint alone -- let's not bother to talk about the stock for a moment. how will it end up? >> i think that legally the key facts need to be fully and

fairly investigated. for example, the downward revision of 5% in the earning estimates may have been made available only to the institutional investors, may have been done by the analysts at the underwriters, which itself raises questions, if the analysts were involved in a misleading way or even directly communicating. there's all kinds of technical questions here. it may come down to fairness, because the law, believe it or not, is supposed to be fair and the little guy, the ordinary investor, the retail -- as opposed to the institutional investor, really deserves fairness here. and mr. galvin is absolutely right, there's no way to attract investors back to the market if it's perceived to be an unfair playing field. i think there will be some settlements here and i think people will be held accountable. >> senator blumenthal thank you for being here this morning. appreciate it. >> thank you.

>> the state department pushing for the release of a man who helped the cia track down osama bin laden. he led a fake vaccine drive that led to confirmation that osama bin laden was holed up in that compound. stunning admission from secretary of state hillary clinton says the government hacked into websites run by al qaeda in yemen that boasted ads about killing americans. secretary clinton says it's part of the u.s. effort to counter al qaeda's recruiting tactics. managing to put out the flames on a nuclear submarine in maine. they say it was really never a threat to the ship's reactor the fire broke out in the forward compartment of the uss miami where living quarters and

command quarters are located. that fire is now out. a voice so nice, they named him twice. >> the winner of "american idol," season 11 is -- philip philips. >> philip philips, crowned the winner of "american idol" season 11, beating out rebecca sanchez. a 21-year-old pawn shop owner from leesburg. fifth year a man has won idol. last woman was jordan sparks back in 2007. >> wow, what's happening there?

>> i don't know. the girls aren't bringing it. the secret service head boss says he's sorry about what happened in south america and whether it could happen again. shocking sermon, the pastor who wants to put gays behind an electric fence so they die out. we'll hear from him this morning. followers saying he's a man of god. margaret hoover, will cain, walking in to join the panel. good morning, guys. now's the time to move from to where you want to go. look up. with u.s. bank let's get the wheels turning. use our strength & stability to open new opportunities. to lend, and lift ...every business...every dream... to new heights of prosperity. good things are happening. just look up. with u.s. bank.

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welcome back, everybody. the director of the secret service calling his agents reckless and dumb over the prostitution scandal in columbia. director mark sullivan testified at a senate hearing yesterday. he said he will not make any excuses for the agents' behavior but did work hard to convince skeptical senators that the

incident wasn't caused by the culture of the secret service. >> the notion that this type of behavior is condoned or authorized is just absurd. i never one time had any supervisor or any other agent tell me that this type of behavior is condoned. who were these people that were condoning it? i will tell you, sir, that is not the agency i know, that we would condone such behavior. >> the author of "in the president's secret service." he broke the original story about the secret service's colombian jaunt. what did you think about the director's testimony yesterday? >> well, he was absolutely correct when he said that this is not a systemic problem or that misconduct is condoned. but what he didn't say and what the senators didn't ask him about is a far more outrageous problem and that is management

laxness, culture within management of not condoning misconduct but condoning security breaches, such as letting people into events without magnetometer or screening. that is outrageous and threatens the life of the president. they don't do regular polygraph testing, where the fbi does. they don't do regular ethics or security training, whereas the fbi does. i read about that in a news max story they don't keep up with the latest firearms, still using weapons that the fbi has long ago discarded. they don't even insist on regular physical training requirements or firearms requalification. that is the real scandal and totally ignored in these hearings. >> suture collins, it was interesting in the hearings. she was trying to, i guess, frame for director, there's some evidence -- to her, at least --

that this was not the first time. take a listen to what she said. >> they don't try to conceal their actions in any way. and that suggests to me that they weren't worried about being caught, that they did not think there would be consequences if they were caught. otherwise, wouldn't you expect that they would try to conceal their actions? >> do you agree with her rationale on this? the fact that they're signing in with their real names and signing the prostitutes in to the hotel with their real names there was a nonchalantness to this? >> they were obviously idiots and this is corner cutting. these agents figure if they cut corners and they let people into the white house without seeing a

guest list, they figure we can do what we want. the secret service never thought any of this would get out except that i broke the story about what happened. it would have been considered an internal personnel matter. these assumptions are, you know, legitimate but not backed up by any facts. the hearings never actually probed what really goes on in the secret service. there was no indication that they really talked to any agents, as i have. getting their trust. getting the real story. and the real story is that this is a disaster waiting to happen. unfortunately, only test to whether the secret service is doing its job properly is whether there's an assassination. that is really the tragedy that may happen unless steps are taken to get this agency back on track the way it used to be before the department of homeland security took it over. >> ronald kessler is the author of "in the president's secret

service." nice to see you, sir. thanks for your time. >> thank you. still ahead this morning, the dangers of skinny jeans. we'll tell you why maybe you should pick a looser variety. that straight ahead. you can watch cnn live on your computer or your mobile device. cnn.com/li cnn.com/tv live. i'm back with a vengeance on twitter. or just back.

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"by, bye baby," janis

joplin. >> my collection is this deep. i've completely given up. it's a start. yes, you go. >> if you live in dallas and you know pizza patrone or any of the surrounding area, on june 5g9, pay taepgs very closely to what i'm about to say say. [ speaking spanish ] >> if you can order in spanish, you get your pizza for free on june 5th. >> in dallas? >> anywhere where pizza patron delivers. quite a bit of controversy. people who are saying this is discriminating against people who speak english. and on the left side of the spectrum is saying -- i don't

even know what they're saying. they're downward -- >> my question is, speaking spanish to each other and say i guess i landed on cnn espanol today. or cnn. >> this is cnn. >> romney should take a position on this. >> clearly. clearly. what have you got? >> turns out that those skinny jeans that -- >> the ones you're always wearing in here that mark and i are telling you not to wear? >> first of all, i don't wear skinny jeans. these are not skinny jean. >> are you showing off your skinny jeans? >> these are not skinny jeans. i'm not in eighth grade. i wear baggy jeans. are these skinny jeans? no. >> yes, kind of. a little. >> those are not skinny jean.

>> there are laws against this. >> these are good for your health. skinny jeans are bad for your health. >> why? >> apparently they compress a nerve that goes down the center of your thigh, causing maralgia parasthetica. >> is that you, modeling those? >> there's will on the right. >> you're about to see the angry will. >> right there on the bike. will. >> if your legs go numb -- >> call me. >> -- buy bigger jeans. my story in the papers today is someone who grew up in long island reading the daily news and new york post every day. the story of peter bud zaccaro, former mob hitman, the daily news delicately called it, a mob rat. he is testifying in federal trial and says that the thing that's wrong with the mafia is that john gotti ruined it

because he made it too much, too flashy in the papers too much. >> wanted to be a celebrity. >> i think he's right. >> that is right. >> is that what ruined it or was it like the killing people part? >> i think that part has been consistent across all time. and then it was the then trying to bring the fame to the killing people part that kind of ruined it. all bad. >> wasn't it james gandolfini who made it popular? >> oh, "the sopranos." >> who is playing gotti? john travolta, coming soon to theaters near you. >> i didn't know that. breaking news to get to in the case of etan patz. 6-year-old boy who disappeared, you might remember, more than three decades ago. police now say they have someone in custody. not many details. we'll tell you what the new york police department commissioner, ray kelly, is saying. also, some backlash after that north carolina pastor

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welcome back, everybody. let's get right to break news this morning. new york police have a man in custody in connection with the disappearance of 6-year-old etan patz 0 years ago. he vanished while walking to a bus stop in manhattan. ashleigh banfield has been following the latest developments for us. >> this is really unusual. if you look at the date tomorrow will be exactly 33 years to the day that etan patz disappeared on his way to school. now we're getting word from the new york city police department that they have a man in custody who has, quote, implicated himself in the disappearance of this 6-year-old little boy.

why this is sounding very familiar to you, even though this is a 33-year-old case, is because just a few weeks ago, this case was reopened. it turned out that there was a cadaver dog that searched a basement about 100 yards from where this family still lives and got a mark. something was curious. the dog got the mark and the investigators went in and dug up that concrete basement. the significance of the basement, it was the workshop of a carpenter 33 years ago, a carpenter named miller. he was not arrested. the search turned up nothing, sadly. no more information other than a big search, lot of debris removed and a couple of dumpsters as well. it was fascinating. it was the first time in 33 years there had been this massive undertaking to see if they could solve this case. it was also huge and made national headlines, being a new york story, because it was the first time a child appeared on a

milk carton. this was the effort, the beginning of the effort to start a national campaign to find missing children. etan patz was the flagship case in the national effort to find missing children. just to wrap up for you, the new york city police say they'll have further details a little later on today about why they have this person in custody, perhaps who this person is and why this person has implicated him or herself in the disappearance, 1979 disappearance. 33 years to the day tomorrow. >> we'll be obviously watching that very closely and bring updates to all as soon as we get more information. ashleigh, thank you. >> sure. other top stories making news, christine has a look at those. good morning. >> good morning, soledad. wildfires out west, burning out of control. winds up to 70 miles an hour, threatening to push a fire in nevada to new extremes later today. the fire is already consumed, destroyed two homes, consumed more than 7,000 acres. more than 500 firefighters are on the scene. this fire is just 15% contained that the hour. another fire in arizona has scorched nearly 16,000 acres.

much of the damage has been on rural federal lands but the town of crown king has been evacuated as a precaution. arizona governor jan brewer has declared a state of emergency in arizona. a hearing will be held in ohio later today to decide whether accused school shooter t.j. lane, can be tried as an adult. the 17-year-old is charged with killing three students in the cafeteria at chardon high school back in february. two others who were shot survived their injuries. lane was at chardon high, waiting to take a bus to an alternative high school he normally attended. do you take calcium supplements? turns out they might be dangerous. researchers studied 24,000 people in europe over 11 years. they found people who regularly took these calcium supplements had an 86% greater risk of heart attack than those who didn't take them. but researchers say the new findings don't show cause and effect and are at odds with other studies. so, more to come there. babies delivered by

c-section may be more likely to become obese as children. a new study examined more than 1,200 mothers and their babies and researchers found kids delivered by c-section were twice as likely to be obese by the time they're 3 years old. c-sections have been linked to increase risk of asthma in babies. the oldest two-year college in the state of texas, tiny lon morris college, faith-based school in jacksonville has furloughed its entire staff and the president has resigned. students are to vacate campus. >> simply a down time for reorganization, efforts to be done. so we can begin to be fruitful and go forward in a positive manner in the fall. >> summer courses at lon morris have also been canceled. the school has been operating since 1854.

>> wonder what's going to happen to students who paid their tuition. are they all reimbursed? >> a lot of kids in limbo, right? >> roadway. >> if you think you're going to get a degree. >> that's terrible. christine thank you. hundreds of protesters are planning to demonstrate outside a north carolina church this sunday after the pastor call for the record gays and lesbians to be rounded up and forced to live behind electric fences so they could die out. as anderson pointed out rightfully the other day, this pastor believe that is gay people are only born to other gay people. anyway -- in case you missed it, here is the mother's day sermon that stirred up so much controversy. it's the reverend charles worley. listen. >> great, big large fence, 150 or 100-mile long. put all the lesbians in there. fly over and drop some food. do the same thing with the queers and the homosexuals. and have that fence electrified

so they can't get out. feed them and -- you know what? in a few years, they'll die out. >> that's the mother's day speech. >> mother's day. >> at the church. >> wonder what he does christmas day. >> has he figured out it needs to be about 150 miles, did a survey? >> i have no idea. it's sparked outrage not only in his community but across the country. cnn's gary tuchman tells us that worley's flock is standing behind him. >> special prayer service was held at this church, hundreds of people turned out to support their pastor and support the words he uttered on mother's day that hurt so many. we wanted to talk to pastor charles worley since we have been here. normally we'll go into a church service, we're invited, even a controversial story, church, mosque, synagogue, people usually let us in. in this case we're being told by the local sheriff's office if we step foot on the property, we'll be arrested for trespassing.

we haven't done that. we spent time talking to a woman who has been to about 20 services of this church. she did not attend this special prayer service. there's two reasons. we'll call her jane to protect her identity. she's not a member. number two is the most important reason. she is a lesbian. she's obviously very outraged at what was said on mother's day but her feelings are very complex. we're protecting her identity because she has two small children and not all her children's friends' parents know she's a lesbian. >> when you heard these comments he made mother's day, pastor worley, how did you feel? >> i was saddened. i was disappointed. >> were you surprised? >> i was not surprised. >> reporter: tell me why you weren't surprised. >> i've been aware of his opinions and his beliefs about homosexuality. >> reporter: have you heard him utter similar comments over the years when you've attended the

church? >> i've heard comments along those same lines in the past. >> reporter: if you had a chance to talk to him now -- and perhaps you will soon because it's a small town -- would you say something to him about this? >> i would say hello. i would extend my hand. and i would say, you've been going through a tough time. this was a very difficult situation for our community. and i pray for you, for hope, healing, peace, tolerance. >> reporter: do you think that he's a good man? >> i think it would be difficult to judge his entire life, ministry, character on that sunday's sermon. i believe that he probably is. r