♪ >> she's singing. keep going. >> i can't. i can't sing at all. but i just want to point out we are playing that song for the miami heat. we should get a shot of will cain, because he is not the champion today. >> well, look. i'm no particular oklahoma city fan. i just didn't want miami to win. but i have to give them congratulations. good job. you deserve it. >> gotcha. coming up on monday, we'll talk to mira sorvino, looking forward to chatting with her live in the studio. carol costello has "cnn newsroom" right now. happening right now in the newsroom, a headline, $3 gas. prices are plunging overnight. new outlook this morning that's great news for your wallet. plus this. >> obviously, you don't buy flood insurance here. you don't do it. so i'm kind of emotional because i don't know what to do. >> police in duluth, minnesota, saying it's not safe here. historic flooding wiping out bridges, roads, and lives.

one town being described as an island. we'll talk with the mayor of duluth straight ahead. sandusky bombshell. an adopted son of the penn state coach claims he too was molested by his father, and he's offering to testify. will new charges be filed? we're live at the courthouse. plus -- >> oh, my god. you're so fat. >> karen, you're fat. >> southwest airlines reached out to us today. they'd like to send you and nine people to disneyland in california. >> you've got to be kidding me. >> the bullies who taunted and teased karen klein humbled today after the jokers fess up and say we're sorry. karen is stunned by all the support. happy friday. newsroom begins right now. good morning to you. i'm carol costello. we begin this morning with your money. less than 30 minutes from now, wall street tries to rebound from a double whammy. one of its worst days in months.

major american banks slammed by ratings agency moody's. bank of america, goldman sachs, jp morgan chase, morgan stanley, and citigroup. the bad news sent international markets plunging overnight. but there is a silver lining to this report. futures are up. business correspondent christine romans is joining us live from new york. so is that a silver lining or am i exaggerating things? >> you're always looking for the bright side, carol. >> i know. >> futures are up, and sometimes that what you see when you have a big down day. the dow was down 250 points yesterday, and it felt pretty ugly all day long. so the futures are up a little bit here. that often happens when you have had a big down day. but it's not just the bank issue here. the bank dowrade shows us there's still a concern about the slowing global economy, the credit markets, the debt problems in europe. that's something that banking analysts are concerned about. and there's a lot of talk about a summer slump. a summer slump in the u.s. economy and the global economy.

slow jobs growth is what that will mean. very low interest rates quite frankly and record low mortgage rates as a result of that summer slump. and falling gas prices. all of these things are kind of what this macroeconomic grew is giving us. there's a lot of things to worry about. contagion from europe. we're talking about factories around the world slowing down. the banks trying to put a ton of money aside to withstand all of this. and we're also talking about the debt ceiling and a fiscal cliff. and congressional inaction on that. put it all together, and you have people very concerned about where we are right now in the cycle, carol. and it's interesting too because mike mayo, a bank analyst we talked to late yesterday after that downgrade, was saying on the bank downgrade in particular, you know, it's not going to affect the way you're doing business with your bank right now but it's going to affect how banks are doing business with each other. they are what pumps the oxygen into the global system. that's why it's so important. he also said it's probably going

to be the worst 10 years for bank lending since the great depression. so that affects you too. you know, the banks are stockpiling money, trying not to take big risks so they wican withstand something terrible happening in the markets. that means you can't really take advantage of the low rates. also this morning, a deadly ending to an 11-hour standoff at an afghanistan hotel. afghan and nato troops engage in a fierce gun battle with taliban militants. they stormed the hotel, taking several dozen civilians hostage. they killed 15 civilians and four others before they were killed. 50 other hostages were rescued by the time the standoff was over. right now, jurors are meeting behind closed doors to decide the fate of jerry sandusky. they deliberated late into the night, ending their discussions less than 12 hours ago. they are now reviewing testimony from two witnesses who appeared on the stand. a former penn state football coach could face even more charges, though, after a

bombshell announcement from one of his six adopted children. matt sandusky. you're going to see him shortly. he is in a striped t-shirt. you see him on the right. he says he too was sexually abused by jerry sandusky. national correspondent susan candiotti is outside of the courthouse. susan, i want to talk a little bit about matt sandusky. he says through his attorney that he was ready to testify. why didn't he? >> well, he didn't testify, carol, because he -- because his father didn't take the stand. it was a pivotal moment back on wednesday when we were all waiting to find out whether jerry sandusky would take the stand in his own defense. we saw matt sandusky come through the witness door that day, and then it was revealed that prosecutors through sources had matt sandusky on standby in their back pocket to bring out as a surprise rebuttal witness if matt's father, jerry, had

taken the stand in his own defense. that didn't happen. so matt didn't testify. but then it was revealed yesterday through that statement that you just mentioned, through matt sandusky's lawyers, saying that matt is now revealing that he was abused by his father. making that claim now. and what makes it particularly are interesting, carol, is that before now, up until now, matt sandusky has always publicly spoke out in support of his father. now matt's name did come up during the trial testimony when alleged victim number four took the stand. and we have an excerpt from that testimony. it goes like this. alleged victim number four speaks. he said jerry started pumping his hand full of soap like he was going to throw it. he was in the shower. then he says matt got out. he went to another shower area. and the prosecutor asked, and what was the look on matt's face when he saw the defendant was about to start a soap fight?

and the accuser said, nervous. now, there had been testimony throughout that oftentimes preceding alleged sexual assaults in the shower that jerry sandusky would soap up his alleged victims, and start rubbing them and that's when the alleged abuse would occur. carol? >> of course, he didn't testify. the jury is not considering his testimony. but they have plenty of other -- they have plenty of testimony to consider. i know they are back at work. they just started. we'll get back to you, susan, to see how they're progressing. thanks so much. this morning national guard troops are fanning out across northeastern minnesota where several cities are reeling from the worst flooding on record. as the governor declared a state of emergency, coast guard crews swept in and rescued at least 15 people from homes that were cut off by rushing water. neighborhoods in and around duluth have been swamped by up to 10 inches of rain this week, and for many days of anxiety are taking a toll. >> when it gets up to this line,

we're moving everything out of the house. and we're done. we're moving out. and, you know, obviously, you don't buy flood insurance here. you don't do it. so i'm kind of emotional because i don't know what to do. >> hundreds of people have had to flee their homes and take refuge in red cross shelters. remarkably, there are no known deaths so far. but the damage is staggering. duluth's mayor says there's at least $50 million in damage just to the city's infrastructure. mayor don nuss is joining me now by phone. good morning, mayor. >> good morning. >> how unusual is this kind of flooding for the duluth area? >> well, it's very unusual. our previous record for a 72-hour period was 6.5 inches. and some of our neighborhoods received nine to 10 inches in less than a 24-hour period. when you couple the fact that, you know, that's just the rain falling on one neighborhood. and duluth is a beautiful city built on a hill, a rather steep

hill. so all that rain that was falling further up the hill then started rushing down and into our lower neighborhoods. and the combination of the rain falling on our lower neighborhoods and the water rushing down the hill created a tremendous amount of pressure that overwhelmed our storm water system. and blew out man holes and damaged both our stream beds as well as our street infrastructure. >> let's talk about the infrastructure damage. because we have seen these incredible pictures of the water taking out an entire bridge. we see highways buckled. how many other scenes like we're seeing now, you know, on cnn's air are there in duluth? >> well, duluth has 25 named streams running through our city. it's one of the things that people love about our city. because we are built on a hill and we have these beautiful ravines. but when you have that much rain falling in such a short amount of time, it simply overwhelms

the system. and you had a large amount of volume coming down at a very rapid pace. and it hit the smaller reveins and just kind of blew the system up. and so there is a lot of damage, and yet it's localized to these areas where we have the culverts and ravines and where the streams went under the roads. you know, most of duluth is in ok condition, and one of the messages that we want to send is that duluth is open for business. that as long as you don't go around the barricades, you're going to be safe in our city. >> so come on out and fish. thank you so much, mayor don ness talking with us live this morning. let's find out why all that rain is falling in min. alexandra steele is here to explain. you heard the mayor. this is really strange for this area. >> well, it's probably some of the worst flash flooding they've had in 30 years. but it's so beautiful, duluth.

look at this beautiful picturesque area. what we have seen is such bad flash flooding. it was really a two-day affair, the 19th and the 20th. about 10 to 17 inches of rain. and the problem is it fell on already saturated ground. so the ground was already wet. and then in comes this seven to 10 inches of rain. you can see what it looks like there. in terms of the forecast, today we're not going to see any rain for the most part. really dry even for the next 10 days. it's looking at the forecast, you can see it's really saturday there's a threat for some scattered showers. and then sunday morning. but nothing as heavy certainly as they've seen. and you can see how dry the balance of the next five days is. and then even the 10-day outlook is pretty good as well, dry weather. >> you're watching another system too. >> that's right. something that is heating up is what's happening in the tropics. here's a look at what we're talking about. we're watching the gulf of mexico, really the northern yucatan peninsula. there's the area of interest there. this is an area of low pressure. you can see it's getting better

organized. no question delineated in that square. now what we're going to see especially in the next two days, the national hurricane center says the depression probably will develop the next 48 hours or so. and the problem is that the terrain of interest is so vast, all the way from the texas gulf coast to the florida gulf coast. now this is what we call, carol, there are spaghetti models. you can see there's a better consensus with the last run of the spaghetti models. it's moving a little bit toward florida more so. before, they were more differentdifferent distributed in terms of where they could go. take a look. it's all contingent upon the jet stream. so the jet stream will push this system maybe to the west, to texas, or possibly to the east to florida. so florida looks like it could get about four inches of rain, but contingent upon this path which we'll know a little more in the next day or two. >> ok. we'll keep an eye on the spaghetti model. thank you. the miami heat's nba title summed up in one word by their

hometown paper this morning. kings. the banner headline in the miami herald kind of a play on king james. though lebron is the finals mvp, the whole team is basketball royalty today. john was with fans last night. i bet it was crazy. >> reporter: i have to tell you, carol, it was outrageous last night. when you look at it today, you know, you can see the street biscayne boulevard is back to normal. a lot of morning work traffic. the arena is quiet. i have to say, though, i think a lot of those people going to work this morning are going to work with hangovers because nine hours ago, this place was insane. >> who's number one now? who's mvp now? the heat are number one! number one, baby!

>> i have been a fan since i was born. i'm so proud of my dude lebron. finally got his ring. this is the happiest day of my life! >> heat, they rock! we won the finals! >> you know, i have spent two years fighting across the country with every non-miamian i know defending my team. they all hate us. and as franklin roosevelt said, i welcome their hatred. this is an emotional win for all of miami, for me. you know, you never forget your first championship. this is our second. it's our first one at home. this is special. >> reporter: i love that guy who said that that was the greatest day of his life. it may have been the greatest day of lebron james' life. you know, carol, they were handing out these towels last night that have xvi on them. 16, which is the number of games

they had to win to get the championship. and they did it. they did it. lebron got his first. and he silenced the critics. >> ok. >> and you're not happy, are you? >> no. because i'm from the cleveland area. so i've been one of those critics. and i just want to run this by you, john. the cleveland cavaliers owner dan gilbert tweeted, congratulations to miami and okc for an exciting finals, but he did not mention lebron, unlike his scathing attack two years ago when lebron left cleveland and gilbert guaranteed his team would win a title before lebron. i assume lebron did not mention dan gilbert last night? >> not that i know of. i listened to quite a bit of his press conference, and in fact at one point lebron was asked if he had any message or anything to say to the cleveland fans. and i may be mistaken, but listening, i recall him saying, you know, that this was about miami. this was about the victory last night. >> blah, blah.

>> and i think he kind of sidestepped that question, yeah. exactly. >> smart man. john, ok, congratulations. i know you're a heat fan. thank you, john. there could be a silver lining to all those economic problems in europe. average gas prices could hit $3 a gallon or less in just a few months. ♪

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18 minutes past the hour. in less than 15 minutes, we'll see how the stock market reacts to moody's downgrading to several big banks in the united states. citigroup, morgan stanley, bank of america and jp morgan chase. the downgrade means these banks might have to pay more to borrow money. moody's is a credit rating agency. it says these banks are exposed to greater risk. also in money news, the average price of gas could be as low as $3 a gallon by halloween. oil industry experts say the price will keep going down over the summer, but get this, lower gas prices are actually a result of a slowdown in the global economy. this morning, raging floodwaters from duluth, minnesota, are spreading to other cities. duluth's mayor says this is the

worst flooding in the city's history. many roads are washed out. some people have a foot of water and sewage in their hopes. the city estimates at least $50 million in damage so far. in sports, this 6-year-old has really beat the odds. he is playing tee ball with only one arm. riley roden had a cancerous tumor on her left arm when he was 2 years old. the only way doctors could save him was by amputating his arm, but who cares? look at riley. he says the hardest part is catching the ball and then throwing it. but he has mastered a way to do that. about four hours from now, president obama will talk to latino leaders in florida to tout his new immigration policies and court hispanic voters. republican challenger mitt romney appeared at the same gathering yesterday. romney is getting mixed reviews from a decidedly skeptical group that could decide several battle ground states. we have a report from orlando. good morning. >> reporter: good morning, carol. obviously a lot of people paying

a lot of attention to what mitt romney has to say. yesterday he tried to focus on the economic conditions of the latino communities, 11% unemployment. 2 million hispanics living under the poverty level. but he did take on the issue of immigration and specifically about president obama's immigration policy allowing at least some young adults who meet certain criteria to stay in the united states despite the fact that they are undocumented. he tried to address this concern, and he said he called this a stopgap measure. something that was really short-term. and he said he was going to be taking on this issue in a long-term, broader type of fashion. but wasn't very clear on specifics. so i want you to listen to how mitt romney put this. >> some people have asked if i will let stand the president's executive order. the answer is that i will put in place my own long-term solution that will replace and supercede the president's temporary measure.

as president, i won't settle for stopgap measures. >> reporter: so, carol, some people were satisfied with that, but a lot of other people thought really there's not a lot of specifics and not a lot of meat to that. they want to know exactly what is going to happen in terms of immigration policy. and what was interesting, carol, is today there was a new web ad from the obama campaign that picked up on an exchange that happened after that speech. a side bar, if you will. a young student by the name of myra hilldago, 28 years old, approached romney to push him on that issue, whether or not he would repeal that. he didn't answer the question. he went off on his way. it was a rope line exchange. we did have a chance to catch up to that student and ask specifically why it was that she pushed him on this. and here's how she responded. >> this is important to me because i'm an undocumented student. i have been in this country since i was 6 months old.

the administrative relief that obama gave us friday changed my life, and i can now pursue my dreams of becoming a lawyer. if mitt romney is elected, he'll have the power to repeal this. if he repeals this, my life will be back to a life in the shadows without promise in the country that i know and love. >> now, carol, what's interesting about this, if you learn more information about this student, she clearly came here as part of an organization. it's actually a lobbying advocacy group based out of washington, and basically they go and confront mitt romney. they are pushing this issue here. it really underscores the importance of the pictures, of the images, and clearly the emotion, the passion, that people have around these kind of life stories and around these policies. if she can get the kind of attention that she did yesterday and actually get it into a campaign ad, they are clearly

pushing thisse agenda trying to bring attention to it. >> you'll be live for your own show at 12:00 noon eastern and the 1:00 eastern show as well. thanks, suzanna. they have been out of work and underwater on their mortgage. this middle class mom asks a question directly to the romney campaign about foreclosures and what romney plans to do. we'll have his answer next. you inspired a ron howard production with your photographs.

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it's time for middle class talk back. a segment we kicked off last month. we wanted to give middle class americans a chance to ask direct questions to the presidential candidates. today, it's moira bindner's turn. she and her husband have suffered long-term without jobs and their mortgage is underwater. this week, she had a question for governor romney. >> it seems that one of the issues for the campaign this year that is being ignored is the millions of americans whose homes are underwater. what are you going to do, especially when the federal government holds many of these

loans, to help support the middle class americans who are not bad people, but who are in situations where the principle really needs to be reduced? >> moira, we sent your question to the romney campaign and they did not respond. most likely because the romney camp runs a tight ship. they like to keep on message. and the message right now deals with immigration. that said, governor romney did talk about foreclosures during his nasty primary fight. >> i'd make sure that we get the government out of housing and let the private sector do its job. we need to allow the market to reset as opposed to standing up and trying to stop the flow of the market, let the market do its work, reset, let home values start coming up. and then finally, get this economy going again. that's the -- you've got to have jobs. >> so in other words, let the foreclosures go on. but will romney revise his views now that he's trying harder to win over independent voters? that's what romney's done on

immigration. he now makes no mention of self deportation for illegal immigrants. but he talks about the need for a long-term solution on immigration. and the auto bailout. first, governor romney said detroit should go bankrupt. now he takes credit for the auto industry's comeback. moira, who knows? maybe romney will change his tone on foreclosures too. of course, we'll keep pestering his campaign for more answers. dad, i think he's dead. probably just playin' possum. sfx: possum hisses there he is. there's an easier way to save. geico. fifteen minutes could save you fifteen percent or more on car insurance.

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32 minutes past the hour. this morning, investors are hoping for a rebound after a flurry of bad news sent stocks plummeting to their second worst day of the year. allisison kosik is at the new y stock exchange. i like the plus sign. >> the dow is up 66 points. you're seeing a bounceback after yesterday's dow selling off 250 points. wall street has a lot to worry

about. europe's debt problems. they haven't gone away. plus, there were new signs yesterday of an economic slowdown. and not just here in the u.s., but around the world. disappointing manufacturing data out of china and germany came out yesterday. here in the u.s., manufacturing showed signs of slowing. jobless claims remain stubbornly high. and the recovery for the housing market is still uncertain. but look, those bargain hunters are out today. and that's despite a credit rating agency moody's downgrading several major banks. and there are a couple of reasons why wall street is shrugging this off. first of all, it wasn't a big surprise. moody's announced in february it was reviewing the banks and basically made good on its threat. and it's not because aad as eve thought. it's screwed logic on wall street. investors are still pest pessimistic because the bar wasn't set lower. >> let's talk about that with

christine romans. it doesn't make much sense. so moody's downgrades the big banks, and then kind of nothing happens. >> well, something big happened yesterday. the dow was down 250 points because the market was anticipating that moody's was going to downgrade the big banks. there was a very big move. and what you're seeing now is a bounceback from that big move yesterday. but there's a lot of sort of danger signs flashing here right now. and among them, you've got the world's banks who have exposure to the european crisis. a lot of concerns about what kind of contagion risks there could be out there. the u.s. economic growth is slowing here a little bit. you know, it's 1.9% economic growth is really nothing to write home about. and quite frankly, the fed this week lowered its growth forecast and raised its forecast for unemployment in the country. so you have another summer slump. just like last summer, carol. it's the very same moment last year we were talking about a summer slump where the recovery was just starting to ail. and the question is, will it continue to be an ailing recovery or will it gather some

momentum in the fall. and many are saying this time around we have an election. and there's political uncertainty around that. we have the fiscal cliff. we have another debt ceiling slowdown by the end of the year. so again, a lot of danger signals flashing here in the market. even though it was up 60 points today, it still has 140, 170 points to go to get back what it lost yesterday. >> we'll see what happens later today. stories we're watching right now in the newsroom, a deadly ending to an 11-hour standoff at an afghanistan hotel. afghan and nato troops engaged in a fierce gun battle with taliban militants. they had stormed the hotel and taken several dozen civilians hostage. police say the militants killed 15 civilians and four others before they themselves were killed. 50 other hostages were rescued by the time the standoff ended. in washington state, a ranger is killed trying to rescue four people on mt. rainier. nick hall fell 3,700 feet to his death. the 34-year-old ranger was

trying to evacuate the injured climbers to a helicopter when he slipped and fell down the mountainside. crews plucked three climbers off the mountain last night and will try to reach a fourth climber this morning. in north dakota, they have a budget problem. many states wish they had. by next june, north dakota expects to have a $2 billion surplus. an improving economy in the state is bringing in more revenue from sales and income taxes and oil and gas taxes. the jury in the jerry sandusky trial is deliberating this morning. there's a shocker they'll never hear before reaching a verdict. sandusky's own son now claiming he was abused too. how this might affect the case. while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife.

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right now, the jury in the jerry sandusky trial is deliberating the fate of the former penn state assistant football coach. jurors stayed until 9:30 last night, the first day of

deliberations. they have to come up with verdicts for 48 counts of child sexual abuse. and for the first time, we are hearing claims of abuse from jerry sandusky's adopted son. attorneys for matt sandusky said he offered to testify against his father, but was never called to the stand. matt sandusky is now 33. he met jerry sandusky through the second mile charity when he was about 7 years old. and then the sanduskys adopted him as a teenager. these new accusations could result in more charges. it also begs the question, did dottie sandusky, jerry's wife, know anything about this? just this week she testified she never witnessed any abuse. but this is her adopted son. cnn legal contributor paul cowen is in los angeles. good morning, paul. >> good morning, carol. >> every new accusation that comes out of this is more dreadful than the last. we should have actually guessed there was something up with matt sandusky. his ex-wife went to court to keep sandusky away from her kids and her request was granted. do you think that dorothy

sandusky knew? >> well, if sandusky is guilty, and of course he still is presumed innocent until that jury comes back with a verdict. but if he is proven to be guilty of these offenses, it is hard to believe she wouldn't know. i mean, we're talking about a staggering number of potential victims in this case. now including his own adopted son. so it's really hard to believe that she wouldn't know that something strange was going on. and frankly, carol, i'm very surprised she was not subjected to a more grilling cross-examination, a harsher cross-examination, by prosecutors. you know, they kind of let her off the stand pretty quickly and easily. >> why do you suppose they did that? >> i had a hard time figuring it out because frankly, most prosecutors i think would have said to her, did you know he was taking showers with little boys? which that question was asked, but --

>> including your own adopted son. >> exactly. and either she says yes, she knew, and it was ok, or she said, no, i didn't know about it, in which case sandusky was lying to her because we know that penn state told him to stop using the showers at penn state. so she was sort of in a corner and could have been cross-examined very, very carefully in that area. and they chose not to do it. i guess they think the case went in very well and they just wanted to get her off the stand. most of the time, jurors look at a wife and it's irrelevant what she thinks. obviously, she's going to support the guy she's married to. if he's guilty of this and found guilty of this, she made a deal with the devil when she decided to live with him for all these years. so we can't expect her to be truthful on the witness stand. but as i said, we have to see what the jury decides ultimately. >> ok. let's talk about the jury because they deliberated until 9:30 eastern time last night. they are back early this morning to deliberate again. this trial has been moving at lightning speed. do you think a decision will come down soon? >> the case has moved -- i don't

know. maybe as fast as any case i can ever remember. i mean, literally. i don't know. 50, 60 witnesses. some days there were 20 witnesses who testified in a day. it was staggering how fast it moved. the jury, though, even if they think there is overwhelming evidence of guilt, they have to go through 48 counts in the indictment. and decide -- and vote guilty or not guilty on each count. so i would be surprised if you had a verdict before the end of today. and it wouldn't surprise me if it went into next week in terms of deliberations, because there's an awful lot of testimony and victims, alleged victims, for them to evaluate. >> paul, thanks so much. >> always nice being with you, carol. the man who wrote a book claiming he saw john travolta in a gay encounter is now suing the superstar and his attorney. we'll break down why.

the man who wrote a book saying he saw actor john travolta in a gay encounter is now taking legal action against the superstar. "showbiz tonight" aj hammer is joining us to sort this all out. the accusations against travolta never ends. >> this is yet another lawsuit involving allegations about his private life. this time it's a libel suit against travolta and his attorney. robert randolph made some racy

allegations about travolta's sex life, the book called "you'll never spa in this town again." he'll revealed some of the stories in the book called "the secret sex life of john travolta" at the time, marty singer denied what randolph was saying and alleged that randolph had been in mental institutions and suffered brain damage. randolph is suing saying those statements are defamatory and impact the hed his ability to se book. travolta and his attorney are calling the lawsuit ridiculous. the other recent lawsuits against travolta by massage therapists were withdrawn. those stories fizzled out publicly at least. obviously we'll have to wait and see what happens with this case. >> aj, thank you. aj will be back with us next hour with more "show biz"

headlines including barbra streisand, about to go behind the camera again as a director. and several a list actors are close to signing onto the movie. also, a congressional committee wants to know what was behind a potentially dangerous air leak at a high security centers for disease control laboratory. it happened as visitors were taking a tour of the building.

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51 minutes past the hour. jerry sandusky back in courts as jurors resume their deliberations in his child sex abuse trial. they are reviewing testimony from two witnesses. right now sandusky's own adopted son matt is claiming that he was also molested by his father. he's accused of molesting ten boys over 15 years. he denies all charges. in money news, more colleges

and universities are offering a 25% tuition break. the catch? students have to squeeze four years of study into three. hartford college in new york is the first to offer the deal. in weather news a. nasty storm is building in the gulf of mexico and it has a good chance of developing into a tropical depression or tropical storm within 48 hours. no consensus of where it might go but, of course, our meteorologists are keeping an eye on it. check out this man in this surveillance video. there he is. new york police say he stole a salvador painting worth $150,000 from an art painting. he asked for picture and the man stuffed it in his bag and walked away. a congressional panel wants answers for the centers for disease control over a reported air leak at one of its bio labs

earlier this year. here's brian todd. >> reporter: it's a highly secured bio germ lab at the centers for disease control conducting experiments with things like monkey pox, rain bees, other things that can be used with biological weapons a potentially dangerous air flow leak will be investigated by a congressional committee. congressional sources and officials tell us the leak occurred on february 16th of this year. >> what could have happened here? >> obviously that would have been devastating. >> congressman michael burjess will be part of the investigation. experts say if ex peerments had been under way at the time of

that air leak, visitors could have gotten exposure to germs but an epidemic would have been unlikely. it's supposed to protect against the leak of contaminated air. it's pushed through vents into that lab where pat though generals, including small mall malls take place, the air sir cue lates and then is supposed to be cleaner than the air that comes in. on february 16th of this year, visitors in a clean air corridor noticed a puff of air being pushed out to that corridor through a window in the slit of the door. that is not supposed to happen. cdc officials say animals were in the lab at that time but were secure in filtered cages. the lab was clean, not active at the time, and no one got infected. cdc said they couldn't put anyone on camera. at no time during featured

incidents were cdc workers or the public in harm's way. there is multiple security layers in the event of an incident. there's been at least one other safety-related incident. in 2008 it was discovered that a high containment lab door was sealed with duct tape. bob holly talked about the safety layers at cdc, like biosafety cabinets that researchers work in within that lab. >> nothing is handled outside that cabinet. so they are working with minute amounts of material and the chances are negligible. >> reporter: a cdc biologist says the cdl will do anything to hide the fact that we have serious problems with the air flow and containment in this whole building. we have not been able to independently verify that e-mail. in response, a spokesman says

that the agency will continue to be transparent in addressing safety challenges and will cooperate with that investigation. brian todd, cnn, washington. a relief pitcher for the tampa bay rays appeals his pine tar suspension. he can still play while his appeal is being heard. but maybe that wasn't the best decision. [ slap! slap! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums

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after coming up short in last year's nba finals, lebron james and nba critics have proven them wrong. his first triple-double of the season as miami beats oklahoma city 121-106. combined for 44 points, mike miller drilled seven three-had pointers but lebron is the series mvp.

of course, this is lebron's first championship. the rays are suspending peralta for having pine tar on his glove. peralta is appealing the suspension and can play until a final ruling. he got a two-run double last night and peralta takes the loss. washington leads in the league by 3 games. shot of the day of the travelers championship. bubba watson, yeah, that went exactly, exactly how he planned it. the ball rolls up and into the cup for an eagle. watson finished round four under par. that's a look at sports this morning. the next hour of cnn "newsroom" starts right now.

and good morning to you. i'm carol costello. deadly rescue on mt. raineer. three climbers trapped at the top make it down safely but one of the rescuers falls almost 4,000 feet to his death. health care price tag. all eyes on the supreme court as it gets ready to rule on president obama's landmark health care plan. we're taking a look at how wall street is tied to the case and which could be the biggest winners and losers. face it, embrace it, conquer it. that is the motto of this inspirational and record-setting swimmer getting ready to compete in the paraolympic games. we're going to talk to her about her remarkable success. we start this morning in pennsylvania. jurors are meeting behind closed doors to decide the fate of jerry sandusky who arrived at the courthouse a few minutes ago. the jury deliberated late into the night and ended their

discussion less than 12 hours ago. they are now reviewing testimony from two witnesses who appeared on the stand. national correspondent susan candiotti is outside the courthouse. susan, bring us up to date. >> reporter: well, hi, carol. it turns out that the jury is now in court because last night they asked to rehear some testimony from a couple of key witnesses this in this case. graduate mike mcqueary and the doctor. mike mcqueary testified that he stumbled upon jerry sandusky with the young boy in the showers back in 2001 and he said, in his words, you don't have to be a rocket science to know what is going on. he described during his testimony that he saw jerry sandusky facing a boy who had his hands up against the wall and that the boy was being sexually assaulted. the doctor testified for the defense saying that mike mcqueary only heard slapping sounds. now the jurors are in open court

and listening to role playing. the prosecutors are playing mike mcqueary and the other one is playing the prosecutor asking questions and the jury is watching all of this and eventually the defense will read the doctor's testimony into the record as well. so they are back in action in court right now. >> susan candiotti reporting live for us this morning. in the meantime, another sandusky accuser is speaking out publicly. his interview appeared on nbc's "rock center" with brian williams. he says that sandusky abused him more than 100 times over the course of several years. >> if jerry sandusky were sitting right here -- >> i'd punch him in his mouth. >> would you say anything first? >> no. there would be no reason to say anything. he knows what he did. i know what he did. >> travis weaver did not testify in the trial but filed a civil

suit. he carries around a tremendous amount of guilt because he says that sandusky was able to abuse more boys since he didn't say anything earlier. okay. this is what it looked like on wall street. just 35 minutes after the opening bell. guess what, the dow is in positive territory. up around 81 points. that's kind of good news because of the news that sent international markets plunging. moody's downgraded the health of 15 banks, including several big ones that you have entrusted your money, to, like goldman, citi group, jpmorgan chase and morgan stanley. christine romans is here. are we in for a rebound? >> it's a rebound for the stocks. a little bit of bargain hunting is what they call it on wall street. some of the stocks are down 50,

60, 70% over the past few years. they are picking up a little bit today after getting just hammered yesterday. the dow jones industrial average is up about .06 of 1%. you need another 170 points to get to where you started on thursday morning. this is all about the bank downgrade, carol, but also because the world growth is slowing, quite frankly. moody's down graded those 15 banks, including five big american banks, in part because of a soft patch in the economy, increased regulation, more uncertainty, because of concerns about the health of the global economy, among other things. that's why those got hit yesterday. they are coming back this morning. just a little bit. >> okay. so what does this mean for me and you? >> you know, it doesn't mean anything for how you are doing your banking, quite frankly. a bank analyst said what you're looking at is probably the worst ten years for bank lending since the great depression. the banks are trying to have a for stress balance sheet that

can protect them and insulated them from anything that happenses in the world. they are very risk averse in terms of lending and they are being very careful in making sure they have very big cash reserves. regulators are making sure that they are holding on to money even as regulators say, can you lend more? what it means for us, interest rates are very low and, quite frankly, because the global economy is slowing, i think you're going to see gas prices continue to come down. how this is going to affect you, this summer slump that we're worried about, slow jobs growth, low interest rates, falling gas prices. those are things that we will feel right now. >> yeah. remember back in the day a couple months ago when everybody was predicting $5 a gallon gas? well, they were wrong, christine, and i'm wrong. christine romans. thanks. delawsuit, minnesota, finally getting a break today.

sunny weather after the massive flooding. nine to ten inches of rain in less than 24 hours which triggered floods. as the city's mayor told me, the low-lying areas took the hardest hit. >> duluth is a beautiful city built upon a rather steep hill. all of that rain that was falling further up the hill then started rushing down and into our lower neighborhood. the combination of the rain falling on our lower neighborhood and the water rushing down the hill created a tremendous amount of pressure that overwhelmed our storm water system. >> the city is open for business but he's warning people not to drive around barricades. now to washington state where a park ranger fell nearly 4,000 feet to his death trying to rescue people stuck up on the mountain. nick hall was helping to rescue

four people trapped on the summit of mt. raineer when he slipped and fell. three of the step climbers were rescued by helicopter. this morning, rescuers will try to reach the fourth climber who stayed on the mountain overnight with two rangers. now an update to a story we told you about yesterday, the one about the school bus monitor ruthlessly bullied by some kids. people all over the world are supporting her after the video went viral. >> you're a troll. you're a troll. >> how about i bring my knife to cut you. if i stabbed you in the stomach, my knife would go through you like butter. >> karen klein is the woman that you see sitting here. a website raising funds to send her on a dream vacation, it's up to almost half a million dollars in donations. last night anderson cooper told

karen klein southwest airlines has offered klein and nine others an all ex pens paid trip to disneyland. he also red read two of the policies. >> do you accept the apologies? >> i haven't gotten one yet. one is supposedly being mailed. but i haven't gotten that one. the other two i might not get anything from any way. >> what do you want to happen to these kids? >> i want them to make sure that they never do this again to anybody. >> there could be a silver lining to all those -- we're glad for karen klein. she is going to go to disneyland and she does have nine people to bring with her. so good for her. okay. on to our next story. there could be a silver lining

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now to the 2012 presidential race. about 90 minutes from now the nation's largest group of latino elected officials will hear from florida senator marco rubio. and then at 1:35 eastern president obama will address the group. yesterday the president faced tough criticism from mitt romney when mr. romney talked with the group. >> some people have asked if i will let stand the president's executive order. the answer is that i will put in place my own long-term solution that were in place and supercede the president's temporary measure. as president, i won't settle for stop gap measures. i will work with republicans and democrats to build a long-term solution. >> so governor romney still won't say out right if he will overturn the president's new order that essentially ends deportation of young illegal immigrants, at least

temporarily. congressman larry forbes is here. he's a romney surrogate. welcome. >> it's good to be with you, carol, as always. >> thanks for being here. governor romney says we need a long-term solution to our problem but didn't explain exactly what he would do with the 800,000 people who are in this country illegally, through no fault of their own, are american in every way -- every other way, rather. why didn't governor romney just outline a plan for those people? >> well, carol, i think the governor did outline a plan and i think we have to step back and recognize this is a big problem that impacts a lot of families and people's lives. i think he sets forth a plan that says basically this. i don't think that any time we use this approach that says that the end justifies the means and we begin to pick and choose which laws are going to be enforced and which ones are not, we don't get a good result. what the gorve nor indicated is

that we need a comprehensive plan that is not going to be just a two-year band-aid that has worked for political purposes but one that has a pillar and you can lay a foundation upon that. he believes that if you have served this country and our military, risked your life, that ought to be a path to citizenship. that's common ground that we can get laws that both republicans and democrats can get and push forward. he said that we needed to focus on making sure that we're getting skilled employees here instead of just randomly using our visa process. again, that's common ground. >> why doesn't he just come out and rescind president obama's exhib executive order? if he wants that kind of plan, not a stop gap measure because he thinks that's harmful, why not say, i'm going to rescind the executive order on day one? >> i because i think he needs to talk about what is a permanent fix, which is his plan. i think the governor needs to be

commended for coming out with a plan before he's president instead of 3 1/2 years after being sworn in. >> but he did come out with a plan. a plan that deals with the 800,000 people, he did not outline a plan to deal with those people at all. >> he outlined a plan because, carol, as you know, that's a portion of the problem. one of the things that we hear across our offices all the time with constituent services is people that are very, very concerned about the abismal inefficiency for documentation of people that are here legally. one of the things that the president could have done is begin to put efforts to address that. i think governor romney very clearly pointed out that we needed to get that process more efficiently and do it. i think the governor has laid out a plan that is going to include all of this and it's going to be a plan that lasts far after this two-year period

of time has expired. >> our cnn contributor wrote an op ed about governor romney's speech. he said, governor romney doesn't have to prove that he'll be tough on illegal immigration. he has to prove that he'll be something that republicans usually aren't when it comes to immigration. smart and compassionate. i think he's talking about this because originally in the heat of the primary battle governor romney suggested illegals will self-deport if they can't find jobs and that would solve are our problems. in his speech yesterday, governor romney softened his rhetoric. does that mean he feels he was being too harsh? does he not believe in the self-deportation anymore? what does that mean? >> i think the governor was very clear in recognizing that this is a large issue that impacts a lot of families and i think one of the things that we see the governor doing is laying out a plan that's going to reach to the heart of this issue. but i think the governor's all along -- he's been very clear

that most individuals in this country are here because they want jobs. this administration has done a dismal job of creating those jobs. i think the governor realizes he's going to do a much better job and that's going to help individuals across the country. >> so do you think the governor still believes self-deportation is a good policy if it doesn't apply to those 800,000 illegal immigrants who were born here and are americans? >> i'm going to leave the governor to apply to any questions that you might have for him. i'm here to talk about what i think the best plans are and how we need to move forward as a country and that's the plan that i was discussing just a few minutes ago. >> so do you think that he -- you know, president obama does lead governor romney when it comes to latino support out there by a wide margin, by at least, what, 30 percentage points. do you think mitt romney made headway yesterday?

>> i think the governor has continued to make headway because i think the governor is putting proposals that are not just political proposals but proposals that are actually going to work and i think most individuals across the country, regardless of what our nationaliti nationalities are, as individuals start listening to the governor's plan, they are going to realize he has proposals that are going to get america turned around again and that's going to be the number one issue in this campaign and as people see that more and more you're going to see these polls continue to move towards governor romney. >> congressman forbes, thank you so much for being here this morning. >> thank you, carol. it's great to be with you. >> sure. we begin in afghanistan where a standoff near kabul is over with seven militants dead and 50 hostages free. the militants stormed a hotel, killed 15 civilians and locked in a fierce gun battle with

afghan and nato forces that lasted 11 hours. in tennessee a. federal jury charges a man accused of calling it a bomb threat at the site of an islamic center. javier called the islamic center on september 5th and left a message, among other things, saying that there's going to be a bomb in the building. he faces a maximum penalty of 20 years if convicted. the average price of a gallon of gas is going to be as low as $3 by halloween. the prices will keep ongoing down over the summer but the lower gas prices are a result of a slowdown in the entire global economy. in sports, this 6-year-old -- boy did he beat the odds oh. he's playing teeball with one arm. his arm was amputated and he says the hardest part is catching the ball and then

throwing it. >> like, how am i going to do this? i have no idea how to play before. i throw the ball kind of high but, take my glove off, throw it, catch it. >> he is awesome. his parents say that riley is an inspiration and a miracle. they have been out of work and underwater on their mortgage. this middle-class mom wants to know how governor romney would help her. that's coming up on middle class talk back. i'm robert shapiro.

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in a segment we kicked off last month, we wanted to give americans a chance to ask some questions of the presidential candidates. this woman is from virginia and she and her husband have suffered long periods without jobs and the mortgage is under water. this week she had a question for governor romney. >> governor romney, it seems as if one of the issues for the campaign this year that is being ignored is the millions of americans whose homes are underwater. what are you going to do, especially when the federal government holds many of these

loans, to help support the middle class americans who are not bad people but who are in situations where the principal really needs to be reduced? >> moira, we sent your question to the romney campaign and they did not respond because they run a tight ship. they like to keep on message and this week the message deals with immigration. that set, mr. romney did talk about foreclosures during his nasty primary fight. >> i'd make sure that we get the governor out of housing and let the private sector do his job. we need to allow the market to reset, as opposed to trying to stop the flow of the market, let the market reset and home values keep coming up. and then ninlly you've got to have jobs. >> but will romney revise his views now that he's trying to win hard over independent voters? that's what romney has done on i am brags. he makes no mention of

self-deportation and the auto bailout first he said that detroit should go bankrupt and moira, who knows. maybe romney will change his tone on foreclosures, too. of course, we'll keep pestering his campaign for more answers. we're taking a look at how wall street is tied to the case and which companies could be the biggest winners and losers of any small business credit card. your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics, put it on my spark card. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] [ thunk ]

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ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. if you're tired of going around in circles, get headed in a new direction. ask your gastroenterologist about humira today. remission is possible. just about 30 minutes past the hour, checking our top stories, jerry sandusky back in court as jurors resume their deliberations in their trial. they are reviewing testimony from two witnesses. sandusky's own son, matt, is claiming now that he was molested by sandusky. sandusky's charged with 48 counts.

he denies the charges. in washington state, a ranger is killed trying to rescue four people on mt. raineer. nick hall fell 3700 feet to his death. the 34-year-old ranger was trying to evacuate the injured climbers to a helicopter when he slipped and fell down the mountain. crews plucked three climbers off the mountain last night and they will try to get the fourth this morning. people in duluth, minnesota, can breathe a sigh of relief. historic rainfall in less than 24 hours. there's at least $50 million in damage just to the city's infrastructure. all eyes on the supreme court which is expected to vote on president obama's health care bill possibly next week and that includes wall street. the supreme court's ruling is sure to be a market moving event and there will be some big winners and big losers. alison kosik is at the new york stock exchange. what is wall street predicting any way? >> wall street is all about placing bets, carol.

and the market at this point is convinced with the individual mandate. we're hearing that investors are pricing in a 60% chance that the court is going to say it's unconstitutional to require some people to buy health insurance. some analysts are going the other way betting that the entire law will be upheld. here are the big winniers if that ham happens. hospitals and medicaid providers. medicaid providers will also benefit from more customers. the affordable care act could shift 15 more people into medicaid. the other scenario is, what if the entire law is thrown out? analysts say big insurance companies will rally. for insurance companies, free enterprise is better than regulation. if the whole law goes away, all of the expensive new regulations go away, too.

drug companies and medical technology companies could get a boost. the medical act did impose on these industries. those fees would be kicked out as well. carol? >> this individual mandate that requires all americans to have insurance, or at least most of them. if the supreme court strikes down the individual mandate as unconstitutional, how does that affect the rest of the health care law because that's how the individual mandate was supposed to fund the entire bill. >> okay. this is the scenario. if the rest of the health care law is in tact. so especially from the standpoint of health insurance companies, that would be actually a worse-case scenario. they have to take on sick customers while healthy people would not have to buy coverage. insurance companies could wind up seeing their costs skyrocket. as for hospital, they would treat people who may not be able to pay their bills. technology makers, those would still stay in place.

also, you've have a tremendous amount of uncertainty in the market and if there's one thing wall street doesn't like, it doesn't like not knowing what is going to happen, aka, uncertainty. carol? >> like what happened yesterday. >> exactly. >> thanks, alison kosik. >> sure. king james, lebron james, the elephant is out of the room. miami wins the nba championship, igniting a wild celebration. we will take you to the party. my cut hurt! 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.

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the heat answered the haters. those of us not from miami. the heat won the nba title. mvp of the finals is lebron.

they celebrated with this banner. kings. john zarrella was outside the arena last night. it was quite the party. >> reporter: gentleman, carol. it really was. look at this. it's already raining on our parade and we haven't even had it yet. >> oh, darn. >> reporter: you know, you're just going to have to embrace it, carol, and move on. that's all i can say to you. but it was. it's back to normal now here in miami. anything but last night. you know, about ten hours ago, this place was absolutely insane after the final buzzer. >> who's number one now? who's mvp now? the heat are number one.

>> i'm so proud of my dude lebron. finally got his ring. this is a great -- this is the happiest day of my life. >> they rock! we won the finals! >> you know, i have spent two years fighting across the country with every non-miamian i know. they all hate us. i welcome their hatred. this is an emotional win for all of miami, for me. you never forget your first championship. this is our second. it's our first one at home. this is special. >> just love the miami fans. don't you? >> i welcome their hatred? >> reporter: they are quoting from roosevelt. it's just terrific. the only thing we're waiting for now, carol, is, when is the parade going to be? it's going to be right down here at the arena and i know you're going to come down for it.

>> i'm getting on a plane right after the show. not. john zarrella, reporting live from miami. another inspirational story to tell but this morning. she's paralyzed from the waste down but it's not stopped her from going for the gold. coming up, a swimmer who is making history and living her dreams all at the same time. s a i didn't know how i was gonna to do it, but i knew i was gonna get that opportunity one day, and that's what happened with university of phoenix. nothing can stop me now. i feel like the sky's the limit with what i can do and what i can accomplish. . . .

now for a story about living your dreams and reaching your goals. victoria became paralyzed from the waist down and now at 17 she's done something spectacular. she's broken a pair of world records. the paralympics.

welcome. >> thank you. >> i am so excited to talk to you because i'm such a terrible swimmer. >> oh, really? >> i was really curious because i use my legs to keep me afloat and of course you can't do that. how do you do that? >> well, at first i had a life jacket because i was afraid to swim without my legs but after a while i trained my arms to -- i tread water constantly but after a while you forget that you don't really -- you really don't need your legs. you just have to have your arms to do a lot more work. >> i can't imagine how strong your upper body is. >> yeah, everything i do is all upper body. so how i get around and everything. so it's stronger than the last two years. >> so tell me, when did you decide to become an olympic

swimmer? >> it wasn't really a plan. when i was 5, everyone has their dreams of going to the olympics or being a professional athlete but it was never really a thought i would actually happen. and i actually got into swimming just to kind of get in shape and just to like -- just for the fun of it. so my parents wanted me to be able to be safe in the water again despite my paralysis and i started doing little competitions and i was winning. so i just -- it just kind of all fell into place. it really wasn't expected. i mean, i even went to the trials not expecting to do how i did. i wanted to swim and have fun. it's all a bonus now. >> wow. i know that your mom had a lot to do with your fabulous outlook on life. tell us what she said to you. >> oh, totally. well, we were -- a lot of people -- once i started back

into the paraolympics, people were doubting me saying that i came too soon into the swimming world to have that be attainable and my mom -- we were driving home for a swim meet. she stopped the car and i'll never forget this and she said, don't you ever let anyone tell you you can't do something. if you believe you can do it, you can do it. and from there it all changed and within a month i was training for the trials and now i'm going to london. so it's incredible. >> it really is. so does a lot -- you know, with competing it's hard because it's psychological, too. so what percentage do you think is psychological and what percentage do you think is physical? >> i think it is 95% psychological because if you're not in your race mode or in that calm mode you're not going to perform well. your body is not going to perform well and you just have to trust your training and your body and physical kalt is a huge

point but between the two of them i think it's 50/50 because they work hand in hand, for me at least. >> okay. what advice would you give to other disabled people? >> probably just to stay true to yourself and believe in yourself and don't let it define you. you know, just rock -- rock your disability and totally just prove all your doubters wrong and live your life to the fullest. it's not a bad situation. only if you make it. >> victoria, good luck in london. >> thank you so much. >> we'll be following your progress. thank you so much for joining us. >> thank you. barbara streisand isn't done in front of the camera just yet. actually, she's not done from behind the camera. big return to the director's share.

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angeles. this is intriguing. >> it sure is, carol. her name has been touched to this new film, it's called "skinny and cat." we reached out to streisand's publicist. it's described as an epic true love story. now, he went on to say that while the project is near and dear to their heart, it's not a go until they have the money. when we asked about firth and blanchett, he said, let's just say that they are unofficially attached. who is going to say no to barbara streisand? the last one she directed was "the mirror has two faces." before that she directed "the prince of tides." >> she's getting kind of bored. she wants to jump back into the water. >> yes. >> you're also following this

legal action against john travolta and his attorney. yet another legal action, i should say. >> yeah. and it's a libel suit against travolta and his attorney, martin singer. this goes back to a couple of years ago when he made a statement. randolph made racey allegations about travolta's sex life. he revealed in a book in an article posted on gawker called "the secret sex life of john travolta" so they fired off a letter defending the client denying what randolph was saying and alleging that randolph had been in mental institutions and suffering brain damage. randolph is suing for defamation and singer is publicly now threatening to sue the attorney's, carol, who filed this suit formal lish shous

prosecution. we'll watch to see where this thing goes. >> a.j. hammer, reporting live from los angeles, thank you. we have to update this story and bring you up to date about what is happening with karen klein. you know the school bus monitor who was bullied? she is getting support from all over the world after this video went viral. >> you're a troll. you're a troll. you're a troll. how about i bring my knife and cut you, my knife would go through you like butter. >> okay. you've probably seen that before. klein is a 68-year-old grandmother. she told cnn she makes about 15,000 bucks a year doing that job. as you know, a website is raising funds to send her on a dream vacation. guess what, it's raised almost half a million dollars in

donations. anderson cooper also told karen klein that southwest airlines has offered her and nine people for an all-expense paid trip to disneyland. he also read an apology letter. >> we received two statements from two of the people tormenting you. josh wrote, i am so sorry for the way i treated you. when i saw the video i was disgusted and i could not believe that i did that. what do you make of that? >> of course he's going to say anything. i mean, you should see the smirk on his face. i don't know, maybe that's the way he looks. but after he said something, you know, he always liked to cause trouble no matter what it was. even if it wasn't picking on me, it was something else. >> another child, wesley says, i feel really bad about what i did. i wish i had never done those things. if that happened to somebody in my family, my like my mother or

grandmother, i would be really mad. do you accept these apologies? >> i haven't gotten them yet. one is supposedly being mailed but i haven't gotten that one. the other two i might not get one any way. >> what do you want to happen to these kids? >> i want them to make sure that they never do this again to anybody. i would like them to be at least kept off the bus for a year. and be forbidden to play any sports, at least for a year. >> the new york school district released a statement saying the school will take action against the students but it can't exactly say how those students will be disciplined. of course, we will keep you posted and we hope that dorothy -- i'm sorry. karen and her friends have a

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from the great movie airplane, have you ever seen a grown man naked? alec baldwin and david letterman dropped their pants. here is jeanne moos. >> reporter: it was a day to go down in television history. a day when not one but two major stars -- >> i've been trying to diet. i've lost so much weight -- >> reporter: dropped their pants. the problem is that none of my clothes fit me. >> reporter: so what is alec baldwin may have been trying to distract from the latest meltdown shoving at a photographer, such short-term

memories departed as he stood there in his shorts. >> well, now i'm thinking, should i take my pants off? >> reporter: sure, you should. dave modestly disrobed behind the charls. there are perils to dropping your legs. >> let's talk about his legs for a second. hairy. >> reporter: a block said, he has some sexy gams. i just wish he took a weed whacker to them. >> it's like a woman's cleavage, after a certain age, nobody wants to see it. >> reporter: actually, dave, it's your socks that everyone is examining. we've seen them before. for instance, the time you showed them to vogue editor but you always kept your pants on. >> here they are right here. >> reporter: fans always wanted to know why you wear white socks and dave would say, they are ay