>> tomorrow, actor john o'hurley's going to be here. looking forward to that. >> so we've got to go go, and we'll see you back here tomorrow. bill: thank you, guys. 9:00 here in new york. new details emerging on one of herman cain's accusers. one of the fist women we learned about who settled a harassment complaint against cain is now going public, but the associated press reports that she also complained of unfair treatment at her next job. we're working through in this morning, i'm bill hemmer, welcome to "america's newsroom." we are packed. martha: we are. good to see everybody, i'm martha maccallum. before we learned about karen, we heard from ms. bialek who said cain needed to start talking, that was what she said she wanted. but cain came out last night vigorously defending himself at

this news conference. >> i have never acted inappropriately with anyone, period. as i sat in my hotel room with a couple of my staff members as they got to the microphone, my first response in my mind and reaction was, i don't even know who this woman is. the charges and the act sayings -- accusations are absolutely, i absolutely reject. they simply didn't happen. we will get through this. the fact is, these anonymous allegations are false, and now the democrat machine in america has brought forth a troubled woman to make false accusations. statements, many of which exceed common sense. and they certainly exceed the standards of decency in america.

bill: so where are we this morning? molly henneberg live in washington begins our coverage. first, what are we learning about the first accuser? karen crushauer is her name, molly. >> reporter: it's possible we could get something from her lawyer today, we just found out, but nothing is scheduled as far as her coming forward in front of a camera yet. but now a treasury department spokesperson has said she's willing to speak in a joint press conference with the other women who are accusing herman cain of sexual harassment, quote, so that we can present together what happened and the court of public opinion can consider the allegations as a body of evidence. according to a statement she put out yesterday. this is not kraushaar's first problem in the workplace. we know she settled with cain for reportedly $45,000, and three years later she filed a complaint charging unfair treatment because she wasn't

permitted to work from home after a car accident, and she also claimed that a supervisor had sent around a sexually-charged e-mail that she found objectionable. she eventually dropped that complaint. bill? bill: molly, what does cain say about her charges? >> cain, who held a press conference yesterday to address these allegations from two women, described what he was told set the claim in motion. remember, that's the claim that was settled. he said one day he was standing in the office next to her, and he was gesturing that you're about the same height as my wife, that's what he said. he said that was the one gesture that he rep remembered and that there was a secretary sitting nearby and that was the end of the story, and at the time karen did not seem to object to that. cain has said he has not acted inappropriately to nip, period, you heard that sound bite. karen has said there were multiple incidents.

bill: okay, molly henneberg, thank you for that. martha: before herman cain steps to the microphone, his new attorney, lynn wood, had a few words to say. you might have seen some of that, introducing mr. cain there. if you don't recognize this man, maybe you will when we trigger your memory with these. he's had a stable of high profile climates. he represented john and the late patsy ramsey, also richard jewel who was credited for saving people at the atlanta olympics, also kobe bryant. bill: so in a moment we're going to get to the big question about what herman cain does next, how he defends himself. karl rove on that in a couple minutes here in our studio in if new york. so stay tiewnd. martha: and it's being called a big victory for big labor. 61% of iowa voters repealed a law that severely would have curbed group onbargaining

rights. that law affecting 350,000 teachers, firefighters, police officers and other state employees. the governor green lit the law back in mar, but now he says the people have spoken. >> if you don't win and the people speak in a loud voice, you, you pay attention to what they have to say, and you think about it. and so people ask, what will you do if this doesn't fail? i can tell you, now it's a chance for me to catch my breath and try to gather my thoughts together as to, um, what we do next. i will tell you that my priority from the time i began to run for this office and from the moment i was elected was only about one thing, and that is creating jobs. and, frankly, we are beginning to win. martha: well, that bill would have done away with automatic pay raises based with future

wage increases on merit, so would have changed the whole system for how these employees are paid. he says it would have closed the budget gap which now stands at $8 billion for next year, and political watchers saying this is also a big win for the white house who was very much against the changes in these union laws, and the white house is taking a victory lap this morning, jay carney saying this, quote: martha: that from jay carney. bill: in the meantime, we're looking to statehouse battles in mississippi and also virginia. mississippi has gone republican for the first time now going back to reconstruction, it had to be in the 1870s, republicans looking to take 63 seats. we'll update that graphic a bit

later. also in virginia, this thing is this close right now. late into the night last night republicans were trying to take over the virginia statehouse, and it looks like there might be a recount on the final vote of the night, it is that close. that would follow a pattern now we have seen in virginia going back over the past two presidential cycles, going back to 2004 on our touch screen, that's why we call it touch, historical, historical matchup between george bush and john kerry back in 2004. and the map red is republican, blue is democrat. george bush not much of a problem, and it has not been a problem for republicans going back to the early 1960s. he beat john kerry by a count of 54-46 back in 2004. now, in 2008 as the map changes you see what happened in virginia that year when barack obama for the first time since 1964 a democrat won the state of

virginia, counted 53-46 over john mccain. watch the battle in virginia as we look at bellwethers right now for what happens in our upcoming election in 363 days from now? give or take a few. here's martha. martha: we wanted to talk about this horrifying child sex abuse allegations that are rocking penn state and really that whole community this morning, and the rest of the country is watching closely as well. new reports today that the university is planning for legendary football coach joe paterno's exit. last night hundreds of people rallied outside of paterno's house. watch this. >> joe paterno! joe paterno! [cheers and applause] martha: he's been a legend at that school, of course, and in football across the country, but he is in a lot of trouble where all of this is concerned. he thanked his supporters, he said that we should all say a

prayer for the victims of this horrific crime and series of crimes. all of this began with retired defensive coordinator, this man -- you see him being taken off by the officials over the weekend -- his name is jerry sandusky. he is accused of molesting eight young boys over a 15-year period in just a horrific, horrific story. sandusky retired in 199 t but was still a fixture around that program, even seen on campus as recently as last week. he faces 40 counts of alleged sexual abuse including rape of children. he met most of these boys under a charity he launched for underprivileged chirp. one of the alleged witnesses was witnessed by a graduate student in 2002 in the locker room showers, and that man went to joe paterno and told him what he saw. paterno's testified that he was told sandusky behaved inappropriately, but also says he didn't know the full ec tent of those allegations, so the

state police commissioner questions whether paterno had a moral responsibility to do more, to make sure that people knew about these claims. david lee miller's live in state college, pennsylvania. david, what is paterno's status this morning? >> at best, joe paterno faces an uncertain future in respect to his job as head coach here. his fate is now in the hands of this school's board of trustees. late last evening they issued a statement saying they are going to appoint a special committee friday when the board of trustees will meet. that special committee is going to determine who was responsible and what measures must be taken to make sure this type of incident does not happen again. let me read a portion of the statement:

>> reporter: martha, it would not be surprising if, ultimately, this cost joe paterno his job as well as even, possibly, the president of this school. martha? martha: awful. so where's sandusky at this point? >> sandusky was supposed to be in court today for a preliminary hearing. that was canceled yesterday for what they are describing as scheduled toking issues. he'll be in court this december. a ninth victim has now surfaced, and sandusky also has an additional problem, apparently, his family has gone to court. a judge has now ruled that sandusky cannot have unrestricted visits with his own grandchildren, he must be in the company of someone else. so there is more and more pressure mounting against sandusky. he is now free on $100,000 bail, and to put that in context, martha, the two administrators for this campus who are accused of perjury and not reporting what happened to authorities are free on $75,000 bail. so relatively speaking, sandusky's bail -- at least

compared to the administrators -- is considerably allow. back to you. martha: tragedy. bill: they have got three days to figure this out before penn state takes the field against nebraska this weekend, and we'll see what tran spires over 72 hours. those are just some of the stories we're watching so far in "america's newsroom." there is new fallout over an immigration law in the state of alabama. have you watched this story? why the board of education is fighting back. we're going to talk to the attorney general down in alabama in a moment. martha? martha: some very explosive testimony from eric holder. he is defending the handling of fast and furious. he answered questions on who was responsible for this botched operation that went so horribly wrong. >> you're not suggesting, are you, general holder, that it's not your responsibility to have known about this operation, is it? >> well, there are 115,000 employees in the united states department of justice.

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bill: herman cain defending his character and shooting down these claims that he sexually harassed women in the past. here is cain from yesterday. >> the charges and the accusations i absolutely reject. they simply didn't happen. and as far as these accusations causing me to back off and maybe withdraw from this presidential primary race, ain't gonna happen. because i'm doing this for the american people. bill: and he went on to say he's doing it for the children in america and their grandchild. karl rove, former senior adviser, deputy keefe of --

chief of staff to george bush has made his way to the american southwest and arizona. good morning, karl, and welcome back. >> good morning. bill: where are we today after his strong statements late yesterday? >> well, look, if a passionate declaration of innocence was enough, that would have settled the issue yesterday. but i think, unfortunately, we're past that point. we now need some third party validation that his claims are true. we see this in the polls. we had a poll a couple of days ago, 53% believed these charges were not true, 38% believed they were true. yesterday there was a new poll out this morning, 39% believe they are true, 38 believe they are true. we don't know exactly where this is, but it does show some deterioration in the percentage of people who believe he's shooting straight with them. and when that happens, a candidate has got to get some third party validation of his claims. bill: now, explain that, third

party validation by whom over what specifically? >> well, look, we now have four women. the original two filed complaints with the national restaurant association and received settlements or as mr. cain calls them, agreements. he says the reports by the restaurant association at the time exonerate him. i think the first line of defense for him now is to say, look, as evidence that i'm telling the truth, let's release the reports by the national restaurant association. if need be, redact the name of the one woman who's not yet come forward, release these reports, and if they do exonerate him, it gives him a defense. somebody else came to the conclusion they were not true. without that, we now get into a situation where we've got herman cain saying i did not do anything, and increasingly at least two women have come forward now, we know there are at least two others, and be at some point the weight of the combined evidence of the complain taxes versus the declaration of innocence by mr. cain are going to continue to raise doubts because the

american people are asking, is cain able? bill: right. one of the points you make is that they want to convince one way or other. now, you said from day one that the restaurant group should release this paperwork or this file. that has not happened. can you explain why? >> well, i don't think mr. cain has pressed for i. the only way -- outside commentators are not going the cause this to happen. it's going to have to be mr. cain saying i call upon the national restaurant association to release these reports because they'll vindicate my position. until and unless he does that, they're not going to be listening to any sort of faceless commentator on cable news tv programs. this will only, the only chance in making this happen is if he ensis that it happen, and even then it's by no sure thing. belle bill also there are questions about the women themselves, and their history is being called into question. it's a natural course in situations like this.

i guess the woman that came out yesterday filed a harassment claim at her next job three years later. she's now threatening to say, hey, i'll call a press conference if all the other accusers sit at the table with me. that could be a bombshell. if -- >> that could be. look, yeah, and let's be clear, there is a -- this situation is unfair to everyone, starting -- now, look, mr. cain has said i didn't want do this. and you're right, there are questions being raised about the woman from chicago about her motivations, her background and so forth. but let's be clear about this. this doesn't do him any good over the long haul or even in the short country. and one of the things that's got to happen is he's got to have his story straight right from the beginning and keep it straight. and we've had these constantly changing, you know, stories, and we've also had allegations and accusations by the cain campaign that have turned out not to be true. they accused the perry campaign of putting this out into the

blood bloodstream. that turned out not to be true. then they accused ms. kraushaar of being a democrat, which she's a career employee of the government. and they said her son works at "politico." a former writer was completely unrelated to her. they undermine their own credibility when they say things they can't prove or that are proved not to be true. mr. block went on television last night and said, well, her son works at "politico." guess what? it wasn't her son. it was no relationship at all except they simply had the last name. bill: it goes to credibility. we'll see how this all goes. karl, thank you. enjoy arizona. martha? martha: here's a big question this morning, does the federal government have the right to force regulation on you? it is a central question in the fight against president obama's health care law in terms of the mandate which we have all talked so much about. so now a judge has ruled, and judge andrew napolitano is here

with his unique take on what all this means.

martha: well, a big win for the president's health care law yesterday. an appeals court ruled that the law is constitutional saying that americans are not guaranteed freedom from federal regulation, essentially. so can the feds make you buy something that you don't want to buy? that has been the central crux of this debate. senior fox news legal analyst judge andrew napolitano here to discuss. what's the meaning of this finding yesterday? >> in a word, nothing. without sounding flippant to the hard work of some very

intelligent judges, nothing because we now have five federal appeals courts, three have said this is constitutional, two have said it is unconstitutional. i'm generalizing a little bit, but what all this means is that the supreme court of the united states though not lawfully compelled, will be morally compelled to rule on this. why? because the constitution and federal law cannot mean different things in the different parts of the country. for example, in the southeast of the united states what's called the 11th sir -- circuit, obamacare is unconstitutional. martha: this is precisely why we need a supreme court. >> correct. martha: they will come in and make a decision on it. i thought it was interest anything terms of judge silverman's opinion on this. he said he believes health care is a unique market because it is something that everybody either has to tap into or contributes into one way or another which makes it unlike other commercial markets which i thought was

interesting -- that's exactly what the obama administration is hoping these judges will say. >> and yet there's no reason to believe that the united states supreme court will say it. when appeals court judges give opinions, they are required to find some basis for the opinion other than their own thoughts. a previous opinion that a court of equal level has written or, better yet, an opinion that the supreme court has written. when judge silver match, and i have great respect for him, he was appointed by president george h.w. bush, that's his own view. there's no case law that says that. the supreme court is free when it reviews this to accept or reject it. the whole issue comes down to the way you articulate it. can the government make you buy something you might not want, might not be able to afford from a company you never heard of for the common good? answer either yes or no. martha: fascinating, and on we go to the supreme court. >> very soon. maybe before the 2012 election which will make hemmer very happy. [laughter] bill: i'm always happy.

[laughter] ohio voters deciding two critical issues last night, one called a victory for unions, the other for republicans. what that might mean for 2012. and new fallout over this hearing that could have a huge impact on the future of eric holder. why one senator says his confidence in holder is, quote, eroding. >> as guns that were lost during this operation continue to show up at crime scenes both here and in mexico. this should never have happened. and it must never happen again. to insure that it will not and after learning about the allegations raised by atf agents involved with fast and furious, i took action.

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there's so many choices... the ts love it! [ male announcer ] it's endless shrimp today at red lobster. as much as you like any way you ke, all for $15.99. offer ends soon. my name is angelarapp, and i sea food differently. bill: this is what you get in two minutes of trade dag on wall street, we're off 200 points already. it takes about 15, 20 minute phos all dow 30 companies to open up but this is a direction reaction of what's happening overseas, you had the problems in greece, now they're spreading westward to italy. i don't know how they figure it out but they have no answers and as a result we're dropping like a stone, down below 12,000 on the dow 30 early on wall street. martha: all right, big night, interesting night, really, last night as voters in ohio decided the fate of two critical issues, one of them was health care, the other had to do with unions and the future of a very

dilapidated state budget in the state of ohio, a law limiting the bargaining rights of unions struck down at the polls resoundingly. here's the governor reacting to what was a big defeat for him. >> the ability to bail them out, somehow come to the rescue with money, we don't have money to do that, so they may have some ideas and i'm willing to listen to what they might need, you know, whatever relief they might need to allow them to meet these financial challenges today, i'm willing to do and we'll have to see what they have to say, and take our time. martha: doug schoen is former pollster for bill clinton and fox news contributor and gretchen hammill is executive director of the public -- the public spokesman for the house republican conference. good to have you here. >> good morning. martha: doug, let me start with you, all of this harkens back to the 2010 election and the

gubernatorial elections across the country, governor complaint asich wanted to do a lot to save the budget, everybody seemed to rally behind that budget until it became clear what that meant and that became a major issue for him, the union poured tons of money into this election, $30 million to get the vote they got last night. what's your take? >> my take is this is a classic case of republicans overreaching. voters in ohio do want to fix the state's fiscal problems and they're prepared to take on tough measures to do it, but what they're not prepared to do is roll back collective bargaining for labor unions. there was another vote on health care in ohio that effectively abrogated the individual mandate. so it's not clear that ohio voters moved sharply left or sharply right, rather, they were i think right down the middle. martha: you know, it's interesting, it's almost like if you polled people, gretchen, and say do you like your teachers, do you like your firefighters, people would say yes, everyone would say yes, we

love the public servants, but if you say do you feel like your state budget is out of control and something needs to be done about it, they would say yes to that, too. >> exactly right. doug made a good point, it was about overreach -- overreaching, the health care mandate won by a 2-1 margin nearly and talked about government overreaching so doug made the point that the governor overreached, basically ohioans rejecting the health care mandate showed that they were against president obama's health care and the overreaching. march what does this say about the presidential election? i saw numbers from the public polling and it seems that even though president obama's approval numbers are weak in the state of ohio his reelection prospects are good according to their numbers. what do your numbers say? >> my numbers and the conclusion of a lot of observers is that last night said that the 2012 election will be very close.

you had a democratic governor reelct dollars in the state of kentucky, you earlier had a democrat elected in west virginia, at the same time the virginia senate is nearly deadlocked. martha: right. >> so i think it's very, very close, martha, no clear verdict. martha: take look at some of these governors' approval numbers. i'm very interested in this. we had scott walker, we all remember what he went through with the unions in wisconsin, he has a 42 percent approval number, let's take a look at the next one, rick scott in florida, also swept in on this, you know, very conservative gubernatorial wave, he's at 37, there's john kasich at 36. this is a rough picture. and it reminds me in some ways of what's going on in europe, everybody votes for austerity, they think they want to get their budget under control and when it turns out in reality what it means in life they're simply not willing to do it. gretchen, comment on that, then doug. >> in the short term it's hard to cut back on budgets and every family and

individual knows that but in the long term it's the right thing to do. the states you did mention, look at colorado, last week, they had their election day a day early and they rejected a tax that would raise taxes on individuals by $2.9 billion. that's a true swing state. i think we've got issues in states where president obama won quite handily this past election to where they look like they're going to be close. martha: doug, what do you think about all that? >> i think there's a growing antiincumbent feeling as well, martha. i think gretchen is absolutely right, there is sentiment against spending and taxes but people are sort of really looking at who's there and saying you're not solving our problems, you're not coming up with common sense bipartisan solution, so a plague on all your houses, and that i think is going to drive sentiment next year and lead everybody to try to blame the other guy and run as an outsider. martha: all right. doug, thank you so much,. >> thank you martha. martha: less than a year to go until the presidential election. gretchen, thank you as well.

bill: attorney general eric holder responding to the botched federal gun running program known as fast & furious, holder grilled by republicans, he was asked why the justice department made the claim that whistleblowers lied when they told congress the atf helped sell guns to a mexican drug cartel when many knew the claims were true. holder responded this way: >> let me clear something up. the information that was shared with you on february 4th in that response, there was information in that that was inaccurate. the letter could have been better crafted. bill: well, one republican senator who hammered holder was asked about whether or not holder should resign. >> i'm not there yet, but i must tell you that my confidence in attorney general holder is quickly eroding, and i'm going to be talking to my other colleagues here in the senate and see what their view is. bill that's john cornyn, he's on that committee. the ranking republican member of the senate

judiciary committee, charles grassley out of iowa, he react toss holder's day on the hot seat when he joins us live. martha: and the fight over alabama's immigration law is now reaching the public school system and pitting the feds against the attorney general there. he will join us on that next. bill: he is presidential hopeful, herman cain, strongly rejecting allegations that he sexually harassed anyone, but has he done enough to silence the critics? here's cain: >> as far as the accusations causing me to back off and maybe withdrawal from this presidential primary race, ain't gonna happen. looking good! you lost some weight.

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martha: all right. we are about to get breaking news in the herman cain story, folks, because we expect a statement any moment now from karen

kraushaar's lawyer, joel bennett, who is about to step forward and make a statement. we're awaiting to find out more details about what happened, also whether or not this press conference with a whole group of these women is indeed going to happen. we'll get that most likely from joel bennett in a little while. bill: in the meantime, martha, there are new developments in the fight over alabama's new immigration law, reports saying the board of education out of birmingham will pass a resolution condemning the law. members say it hurts students in their states. under the law schools are required to check a child's immigration status. alabama attorney general lucas strange is my guest now. sir, good morning to you and welcome back to "america's newsroom". your reaction to what the board of education is about to do. >> well, i've not seen that, bill. that's news to me. but as you know, this is a very contentious issue, that provision that you're talking about has been stayed by the federal court so it's not in effect now but i'm sure this debate

which is very contentious will continue and lots of people will continue to weigh in on that. bill: they're saying it's hurtful for students and teachers and others. is that the reaction you are hearing there in alabama? >> i have not seen evidence of that. i've heard anecdotal stories about it. you know, my mission as the attorney general is to make sure the laws are in force and recognizing the controversial nature of this law, to handle it in the dorts -- courts, try to take the politics out testify and what i've said consistently from the beginning of this, it's my job to enforce the law, if the legislature or governor wants to change them that will be handled in the form of public debate. we want to make sure no child is discriminated against, no child can be denied an education based on immigration status or any other criteria and i've tried to make that clear every possible chance. bill: that's why we brought you on. the governor says it's a confusing bill, although he supports it, and perhaps it need to be simplified. can you expand on that?

>> right. well, the governor, the legislature decided they needed to take action on this issue because the federal government is not doing its duty, obviously. the governor signed the bill. now i think it's been in place for some time, portions of it. they are realizing there are probably things that need to be addressed, and unfortunately we weren't consulted when the law was written. my job is to defend it. i'm hoping they'll consult with us as we move forward so if there are any changes to be made we'll work with them to do that. bill: you know it's getting a lot of attention, as are other states, it began in arizona, then went to utah, alabama is in the crosshairs on this, too, but if it were to be simplified, how would you do that, sir? >> right. well, that's a good question. it's a very contentious issue. you know, there are many ways you could do that. i'm hesitant to give recommendations to the legislature. they are the representatives of the people of the state. they made a decision to go a certain route. my job is to defend that. it's really not my job to

tell them what kind of laws to pass. when i campaigned for office last year, my position was that we should enforce the e verify provisions so that employers could not hire people who were here illegally. the legislature decided to go much further than that and we're dealing with enforcing that in the court system now. bill: just so our viewers know there are two aspects of that law, the e verify applies to companies who hire anyone. >> right. bill: and that goes into effect the first of the year, right, on january? but the checking of the status of students will -- that aspect of the bill has been put on hold, right? >> it's been put on hold, it's not being enforced, and we've had some correspondence back and forth with the justice department, it wants information about our status with our students. it's gotten some publicity lately. that's a pretty much standard procedure when we're requested information, we want to know the authority they have to get it, so we can then advise our clients and we're doing that, we're working with them. we want the justice department to have the

information they are entitled to, we want to protect the rights of all of our children. it's set up to be a system, though, where we cooperate with each other, and unfortunately, we're not getting any cooperation from the justice department at this time. bill: and i know that's a continuing challenge for you. so we're going to stay on top of this and see which way it unwinds, okay? luther strange, the attorney general there. >> i appreciate you being interested in the issue. bill you're most welcome and thank you for your time today, the attorney general there in alabama. go to foxnews.com/"america's newsroom", click on our bya box and leave a question about immigration in your own state or e-mail hemmer, foxnews.com, on twitter, bill hemmer, because you asked, bya. breaking news. martha: we are waiting for breaking news in the herman cain situation. the lawyer for karen kr kraushaar the first woman who raised these allegations is about to step in front of the microphones and speak, we may learn whether or not there will be a press conference with all these women coming out together which would be quite a sight, and we'll get details

on the allegations against herman cain. we'll go live there moments from now here in "america's newsroom". [ male annouer ] juice drink too watery? ♪ feel the power my young friend. mmm! [ male announcer ] for unsurpassed fru and veggie nutrition... v8 v-fusion. could've had a v8.

bill: we quickly want to watch this and keep an eye on it throughout the day, we're significantly off on the dow 30, a lot of this reaction in what happened in europe, first it was greece, italy, now we're trying to figure out which way europe goes and how much effect that has on us here at home. we'll watch it throughout the day. down below 12,000. martha: hard figuring that out, right? >> bill: give us time, a long time. martha: this is what makes politics so interesting, a few short months ago lots of people were ready to write his political obituary, but newt gingrich hung in there, remember the thing about the overturning of the staff? and he's seen his stock rising in significant weeks

and he spoke about that last night on "special report". check it out: >> we came close to not surviving, so i think it was a period there when it was reasonable to wonder what was going on. we've built a campaign of solutions. martha: gingrich is now solidly in third place in the national polls, he's doing even better than that in some of the state polls so look out for the little engine that could! >> bill: for the moment you're right. we look at the fallout from the vote yesterday, $22 million down the old pipe, all to change the way you can buy wine and liquor in the state of washington. costco wholesale corporation, spending $6 for every registered voter there, and it paid off, too. voters in that state approving the plan to privatize liquor sales and dismantling controls that have been in place since prohibition. that means retailers about be able to bypass wholesalers and buy from producers. it's the highest spending from one donor in any state.

martha: the the speaking doing damage control over disturbing reports that the remains of u.s. soldiers are being lost. body parts were reportet -- reportedly lost the a the dover air force base at least two times but after mortuary employees were fired for, report, gross mismanagement, the pentagon is working to reassure fallen soldiers' families that the issue in their opinion has been fixed. what a troubling story this is. steve centanni, live on it from washington. steve, what action really is the military taking after this huge breach of confidence? >> reporter: right martha. well, there will be an independent probe, as the pentagon tries to prevent this kind of thing from ever happening again. dover air force base, as you know, is where the remains of our fallen warriors arrive back on american soil from iraq and afghanistan, bodies are unloaded during solemn ceremonies on the tarmac but it's what happens behind the scenes that has investigators worried. body parts have been lost in at least two cases and in one case, an arm was removed

without the family's permission, so the body would fit in a coffin, a top general says it should have never happened. >> soldiers, sailors, marines, coast guardsmen around the world should know that the men and women of all branches of service at dover do their business with the utmost care, the utmost respect, the utmost dignity, they should be proud of the work at dover. >> reporter: and air force chief of staff called these systematic issues and says it's now corrected. martha: one certainly hopes so. have those responsible for the egregious events been fired, steve? >> reporter: well, no. three people have been reassigned, not fired. some people say that's not good enough. secretary of defense leon panetta ordered an independent review of this entire affair and said in a statement one of the department's most sacred responsibility social security ensuring the remains of fallen heroes are recovered and returned to

families with the honor and dignity they've earned. this is why i was deeply disturbed involving the questions about the possibility of improper handling of remains. panetta's special review is set to be done within 60 days. martha: steve, thank you. bill: we have just come across video tai of -- videotape of congressman joe walsh getting into a rather heated exchange on who was to blame for the economy. you've got to see this video. we have it after the break. martha: ohio voters split right down the middle on two hot button election issues. why the governor is offering kind words today for the opposition. >> frankly, i've been involved in a lot of things, where it's sporting activity or politics. you know, when you get beat, you have to admit it and you got to congratulate and shake the hand of those folks who prevailed. americans ao work hard for a better future. since ameriprise financial was founded back in 1894,

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martha: we've got some breaking news for you. just moments ago, crossing wires, news that joe paterno, legendary penn state football coach announced he will resign at the end of this season. that is raising some questions as well. he says he will resign at the end of the season. we'll talk more about that coming up. bill: more breaking news on a fox news alert. he is known for speaking his mind loud and clear. illinois republican joe walsh in a tense exchange with a event, cup of joe with joe walsh. we have our hands on this videotape. sparks started flying once the conversation turned to role of big banks and financial collapse. watch how it unfolded. >> joe, look at people, paulson, whoever else keep going from big bank. go into fed government. then they go back into the banks and keep row trading. -- rotating. >> i agree with you about that. that's not the problem!.

that's not the problem. the problem is you got to be consistent. and i don't want government meddling in the marketplace. yeah they move from goldman sachs to the white house. i understand all of that. but you to the to be consistent. and it is not the private marketplace that created this mess. what created this mess is your government which has demanded for years that everybody be in a home. and we made it as easy as possible for people to be in homes. bill: now we're going to this video to find exactly the circumstances for that. members of his campaign say there were people there to cause trouble. whatever the case in moments we'll talk to the former new york governor george pataki whether congressman walsh has a point and who is to blame for all this mess. and most importantly how this plays out 12 months from now in 2012. stay tuned for that one. martha: we're waiting for breaking news also out of the herman cain situation.

the podium you see set up there in washington, d.c. in the georgetown area is for joel bennett. he is the attorney of karen crash shower -- kraushaar. she is willing to come forward in moments. we'll find out what the details might be in a statement from joel bennett. in the meantime defiant, defensive and determined really, heading into the presidential debate tonight. herman cain clearly prepared for battle as he goes for michigan tonight for the debate hours after holding a news conference disputing all the allegations of sex sex from woman who say they met him from the tenure at national restaurant association. we'll get breaking news on this moment. stay with us as we start a brand new hour of "america's newsroom.". i'm martha maccallum. bill: i'm bill hemmer. that hour went flying by.

cain says the allegations are false. one of the anonymous accusers reveals her identity, cain is questioning their credibility. >> throughout my career i have had nothing but the utmost respect for any and all women as well as those are worked under my leadership in all the different companies that i have worked. i can categorically say i have never acted inappropriately with anyone, period. martha: steven hayes, joins me now senior writer for "the weekly standard" and fox news contributor. with every passing day we get basically more of this. we'll hear from joel bennett. who knows what he will say about the details of the karen kraushaar events. where do we stand with all of this, steve? >> this is the fundamental problem for herman cain. the fact we're talking about it. the fact that there is another news conference.

the fact there is another name put to some of these allegations or a face put to some of these allegations. the fact that when voters think about herman cain, if you asked voters two weeks ago, when you think of herman cain what do you think? everybody would have said 9-9-9. this is the guy, anti-politician speaking directly to republican primary voters and known for bringing tax reform into this debate, an important issue at an important time. now you ask people what they think about when they think about herman cain, overwhelmingly they will talk about this swirl of allegations that have been brought against him. martha: steve, give me a second. is that joel bennett that stepped in front of the camera. hang on for us. >> do a joint press conference with her client. my client has agreed to do a press conference. we're going to reach out to the other women who have made it known that they were sexually harassed by mr. cain later today. see who, if any, are willing to participate in the joint press conference. once we've given everyone

else an opportunity to participate, we will coordinate and determine a date, time and location for the joint press conference and give all media at least 24 hours notice before we have the conference. >> go ahead with the conference with -- [inaudible] >> yes. >> it has been reported that your client had referred to mr. cain as cereal denier -- serial denier. [inaudible] what do you cain from coming forward with the other women? >> ply client and i feel that having all --. sorry when the national airport flight pattern here. my client and i believe that it would be helpful to the

public in judging this matter to see as many of the women as possible together and hear the specifics. we've heard the specifics of miss bialek's complaint. we have not yet heard my clients specifics but it is our intention to do so. if any of the women are willing to come forward we think that is helpful whether mr. cain's denials have been truthful or not. >> mr. cain has referenced your client talking about height. that is compared her height to that of his wife. so is your client denying, or questioning his denial what did happen? >> first of all, my client is 5'2". mr. cain said his wife is five fetal. i'm not even sure my client is the person he made the comment to. assuming he made the comment, my client is a intelligent, well-educated woman. she would never file a

sexual harrassment complaint about the comment like that, you're the same height as my wife. that is ridiculous. no one, no rational, well-intentioned person would file a sexual harrassment complaint about a comment like that. the specific items that my client filed a written complaint about in 1999 were not harmless remarks like that. they were incidents of sexual harrassment which we will detail when we get to the joint press conference. >> how -- [inaudible] based on we heard mr. cain and others talk about financial records of the other women and what not. do you think that they will actually come forward? >> i have no idea. some women suffer these types of actions and don't complain because they're afraid of public exposure. others file complaints and don't want to go public and it is up to them to decide. i will respect whatever decision they make. >> have you made contact

with their attorneys or? >> i have not. not yet. i hope to do so later today. >> how do you feel about mr. cain's response to the allegations? >> his response as i understand it from what i saw from his press conference is he engaged in no inappropriate behavior, no sexual harrassment, denies all the allegations. my client stands by the statement we issued last friday that she was sexually harassed by him on multiple occasions, multiple instances on multiple dates. >> he doesn't even remember some of the details of -- >> i can't speak to his memory. the settlement agreement was signed in 1999. he did not sign the settlement agreement. i understand he was gone from the national restaurant association by that time. but the national restaurant association statement issued last friday said he denied the allegations. how can you deny allegations if you don't remember them?

>> he said -- [inaudible] >> that's a decision for him to make and the electorate. i'm not going to express any opinion on that but when you run for the highest office in this land you open up your whole life to public scrutiny. martha: all right. boy, do you. that's a very true statement from joel bennett. this is about to get messier, stephen hayes. they're saying though will do a press conference. that the details what he is saying are several allegations of sexual harrassment. he says he doesn't know what mr. cain is discussing when he talks about the you're the same height as my wife which he said this women is going to say. we'll hear something totally different. >> perhaps. this was a press conference to announce a press conference. part of the reason people have a difficult time sifting through the charges and allegations and defenses and denials because you have, this story is increasingly taken up with glory hound who want to see themselves on tv or holding a press conference to announce a

press conference. this didn't advance the story much. i don't know what mr. bennett thought he was doing. if there are real allegations then his client wants to put them forward and be specific with her name, this karen kraushaar, she should do that. martha: stephen hayes, this story is not fully written. >> certainly not. martha: announce one coming up in near future. stephen, thanks for weighing in on this we'll check in with you when we get more information as it infolds. bill: a split decision in voters in ohio on two hot-button issues with big implications for 2012. voters overwhelmingly passing a state measure banning the individual mandate in health care. at the same time rejecting a law restricting collective bargaining for state employees. it is political blow to governor john kasich who wanted to use the law to bring down a $8 billion deficit in his state. >> the truth of the matter

is people who are motivated and who feel a mistake has been made want to answer that and that's what happened this evening. and so we face a situation in which we want to understand from local government how they want to handle these kind of problems in the future. we'll be listening. bill: in columbus, is doug mckelway, live in the capitol city there. how is this playing out, now, doug. good morning? >> reporter: good morning, to you, bill. don't make a mistake this is huge victory for big labor. they set up a firewall. out spending rivals four to one. it resulted in resounding defeat of issue number two. public sector union workers cheered as they watched the returns coming in knowing collective bargaining rights will not be restricted in ohio. now the cold reality sets in according to very humbled governor john kasich. he says cost of union pensions and health care benefits paid by ohio taxpayers will be difficult to bear.

>> as far as local governments two, you know, we'll work with them to help them overcome their challenges but let me be clear. there is no bailout coming. there is no bailout because frankly there is no money. >> reporter: keep in mind the union victory on issue 2 was somewhat blunted by the conservative victory on issue 3 which allows ohioans opt out of the individual mandate of the president's portable care act. democrats say they will resonate throughout the country. this is former governor ted strickland. >> that was a good night for sherrod brown and president barack obama. this particular issue galvanized people in a way that gives energy to the democrats as we move into 2012. >> reporter: bottom line, a mixed message from ohio that reafter first this state's reputation as a volatile swing state. bill? bill: that it does. it fits the definition there

in the buckeye state, you're right, doug. thanks, doug mckelway in columbus. martha, what's next? martha: he is never shy about his opinions. >> you know what? this pisses me off. too many people don't listen. there are already mechanisms in place to do that. are they doing their job? no. but what do you want to do? you want to bombard them with more regulations, more government. government --, government screwed this problem up. martha: that is one way to chat with your constituents. illinois republican and tea party favorite joe walsh responding to questions about the influence of big banks in washington. that got him so fired up there but was he right? we'll talk to governor george pataki about that? bill: attorney general eric holder grilled by lawmakers on operation "fast and furious". did he change his story or stick to it? we'll talk to a member of the. >> committee that oversees the justice department about this. >> have you apologized to the family of brian terry? >> i have not apologized to them but i certainly regret what happened. >> have you even talked to them?

>> i have not.

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bill: here we go with more breaking news out of penn state by way of news core. penn state football coach. lori: paterno says he will retire at the end of this season according to his son scott in a interview with the haridopolosriesburg patriot today. besieged by criticism, former defensive coordinator at one point heir to the paterno crown, jerry sandusky charged over the weekend with molesting eight young boys from the years 2001 to 2009. gary schultz, was charged with failing to notify authorities after an eyewitness reported an assault in a bathroom back in 2002. paterno, according to his son, will stick it out for the rest of this year and resign after the conclusion of this football season. we'll get more news from

state college in a moment here on "america's newsroom.". martha? martha: sat story. let's move back to politics now for a moment. there are some voter questions on our nation's financial collapse that have caused a republican congressman to blow his top. tea party favorite illinois congressman joe walsh who is known for occasionally blowing his top getting fired up, he did this during a casual event sunday thing he does with cup of joe with joe walsh which sounds nice enough, right? a question on big banks and our nation's mortgage collapse got going in the room. that ultimately sparked this reaction. >> it's not the private marketplace that created this mess. what created this mess is your government, which has demanded for years that everybody be in a home. and we have made it as easy as possible for people to be in homes. all the marketplace does is respond to what the government does. the government sets the rules. don't blame banks and don't blame the marketplace for

the mess we're in right now. i am tired of hearing that crap!. i am tired of hearing that crap. >> the situation, taking in people they know -- >> there are already mechanisms in place, you know what. this piss me off. toe many -- too many people don't listen there are mechanisms in place to that. are they have doing their job? no. what do you want to do, bombard them with more regulations? more government? >> reform. >> government screwed this problem up. what do you want? you know what you got? you got dodd-frank. you got dodd-frank now that is tying everybody's hands. want more reform, more regulation. that's what you got. do you want more relation? do you want dodd-frank? is that what you want? >> what did i say back at joe's -- >> i need more coffee. it is so -- >> decaf. martha: you hear the end of that.

at cup of joe event. i need more coffee. they're screaming decaf, please. give the man decaf. governor pataki not the way you usually deal with your constituents. >> i think decaf would have helped, martha, a great deal. martha: you have two stories. one how he is dealing with the folks. we should point out the person shot video there were troublemakers in the room got him so riled up. that is how we got riled up. we seen him riled up before. that is not all that unusual in his behavior. that is one thing. the other thing is the underlying sentiment he is saying. >> the underlying sentiment were two points, three points. two which i agree with. we have too much regulation from the federal government. i think that's true. the second the housing crisis and a lot of banking crisis resulted from federal government actions. i think that is true. where i disagree with the congressman, i think the banks in many instances were at fault. i don't think republicans should be out there, defending companies and banks too big to fail. we saw it with mf global.

they made a hideous bet. lost hundreds of millions of dollars and they went bankrupt as they should. we saw it with lehman. we saw it with other financial institutions. i agree with the congressman, that the federal government shouldn't bail out the failed institutions when they make a bad bet but clearly there is fault on the part of the private sector as well in creating both housing bubble and the financial crisis. martha: all these efforts to rein in spending and we saw some of them fail in the election last night. there is word some of the members of gop super-committee are willing to raise taxes. they're willing to add revenues as part of this package. what do you think about what is going on? >> martha, those are two different points. raising taxes and raising revenue. martha: true. >> i think raising taxes is the worst thing you can do when we're still in a recession. we still have 14 million people under employed or unemployed. you can raise revenue. i don't think it is necessary in 2011 to continue to subsidize ethanol growers. i think there are other elements of breaks in the

tax code that we could eliminate, make it a fairer system and generate revenue. i also agree with the president's own bipartisan commission that you shouldn't raise the tax rates. you should lower them. the bowles-simpson commission recommended lowering the income tax rate to 24%. this president keeps on insisting raising them. i think he's wrong but i think republicans in exchange for a significant amount of real cuts in discretionary and entitlement spending in washington should agree to close some loopholes and raise revenues. martha: that's a popular argument and one that is getting a lot of attention. thank you so much, governor pataki. good to have you with us. >> thank you, martha. bill: back to penn state. we're getting our statement from the head coach joe paterno. it is about four or five sentences long. he says i'm absolutely devastated by the developments in this case. i grief for the children and their families and i pray for their comfort and relief. i have come to work every day for the last 61 years with one clear goal in mind, to serve the best interests

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bill: hopeful signs of the economy we wonder? job postings are up during the month of september. labor department reporting businesses and governments posted 3.35 million jobs that is a 7% increase from august, the most in three years. from the fox business network emac is here, liz macdonald. good morning to you. something tells me this is not all good news. first the facts. what do we have, emac? >> you're right. 3.5 million job openings. this is highest since august 2008, bill. that is the month right before the financial crisis struck the u.s. economy.

so it is a hopeful sign. we've had joblessness and lack of job creation for about 38 months now. more than three years in a jobless recovery. is this a hopeful sign? that's what some economists are saying. bill: 14 million are out of work. i think the number is higher than that for the underemployed. that means 4.2 unemployed workers are fighting for each job opening. four to one. >> yeah, that's right. that's right. usually economists said two to one is a healthy rate of growth for the u.s. economy. and, you're right to point out the unemployed, the underemployed the because at that rate, that means there are eight people looking for everyone job that opening that's out there. we're looking for any glimmer of hope we can get, any silver lining to get out of this record jobless recovery. bill: you said something in there i think should be underlined. you need to cut that ratio in half. >> reporter: that's right. bill: need to go from four

to one to two to one before you see any recovery? >> reporter: that's right, bill. the point we're making it takes companies one to three months to fill those jobs. whether or not this is good sign for the economy still remains to be seen. underemployed, factor 8 to 1. eight people looking for everyone job opening. bill: thank you, elizabeth. see you on fbn. >> reporter: sure. bill: martha? martha: breaking news on the retirement of a legend. joe paterno saying he is done after this season. new details on this really unsettling, awful story. bill: also attorney general eric holder grilled by republican lawmakers on "fast and furious". did he help or hurt himself? we'll talk to a leading member of the senate committee that oversees the department of justice. >> my feelings of sympathy and regret go out to the terry family and i hope that the steps that we have put in place, the measures that i have called for, will prevent other federal agents, local, state agents from

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bill: there were tense moments and we expected them during a hearing on operation fast and furious. eric holder the attorney general grilled about the botched federal gun running sting that put weapons in the hands of mexico's most dangerous criminals. things got interested when they asked about the border agent

believed to have been killed by that operation. >> have you apologized to the family of brian terry. >> i have in the apologized to them but i certainly retpwret what happened. >> would you like to apologize today for this program that went so wrong that look the life of a law enforcement agent. >> i certainly regret what happened to brian terry. i can only imagine the pain. i am a father of three children myself. we are not programmed to bury our kids. it pains me whenever there is the death of a law enforcement official especially under the circumstances how this occurred. it is not assumed that directly what happened during fast and furious related to the death of

bill: senator, good morning to you. did you have a problem with his testimony or anything you just heard there? >> well, won't it have been so simple to say, of course i apologize to the terry family? that would have been the humane thing to do, and the right thing to do. and senator cornyn gave him every opportunity to do that. now instead of this being a few weeks before may the 3rd it was at the time this was publicized, sometimes around january or early february is what i think the attorney general is telling is. we have ample evidence that his acting deputy attorney general, mr. grindler new about this a long, longtime before that. that person became his chief of staff, and memos that were given to the attorney general that he said -- i think to sends cornyn

yesterday, though he didn't read them, that he should have known about this a long, longtime before terry was murdered. bill: the other thing he said yesterday, i know you were keen on this. because there was testimony back in the spring where he said he had just learned about fast and furious a few weeks ago, and there was a bit of a disagreement on that testimony saying that it may have been a few months ago. but he insists that the information he gave was -- it wasn't false information, it was just incorrect i think was the word he used. does that past muster? >> of course it doesn't. it gets back to what i just told you about mr. grindler being involved with emails and memos with his own handwriting on these back several months before that, and the fact that we've got memos that went across his desk, or he should have seen them in the summer of last year,

and so one of two things, either he knew and is telling us he didn't know, or he's incompetent because he doesn't know what is going on in his department, particularly with something -- stpho: on those two points, did you get an answer from that hearing yesterday? what is your feeling on that now? >> no, i didn't -- i didn't get answers. it's objec obviscation. bill: easy voiding it you're saying. >> he gives answers but they are not very credible. bill: what he calls this is gotcha games. >> that's an insult nor me. i've been doing congressional oversight work on several different tkpheut committees since i've been in the congress for 30 years and i have a reputation around here probably taking on my own republican presidents than i take on democratic presidents. to say this is political gotcha

when i have an equal opportunity overseer reputation i think is very unfair or stupid on the part of somebody who doesn't know my work around the senate. bill: i take it you take it as an insult. >> if i didn't use that word i'll let you put quotes around it. bill: you say in a statement that came out late yesterday that the inspector general is still look into this. what does that tell you within the department of justice regarding this? >> having the inspector general investigate when there is simple little questions that we're answering that they won't answer, and probably have nothing to do with the inspector general's investigation is just a way of stonewalling. bill: senator, thank you for your time, chuck grassley. we will wait to see what happens next in the story after the hearings conclude. martha: you know what it has been nearly two weeks now since

that october no storm that knocked power out to millions of people on the east coast. guess what, this morning some people in connecticut are still waking up -- bill: come on. martha: -- not kidding with no power. crews have fixed most of the downed wires. they put them up next to the trees and they will be knocked down during the next store. people don't think that is a good idea. what the heck is taking them so long, laura. >> reporter: we are in a neighborhood that was hit very hard. you mentioned a lot of people. at least 3400 people are still without power this morning. it's 12 days. we've got big trees down like this one. i want to show you another reason why this is taking so long. as we pan around to show you the line that is down. power lines are down everywhere, on in some places draped like christmas tree lights across broken branches in driveways which is keeping electric company crews working day and night. we saw it all night last night. this one in avon has sparked

some power to customers, and they are considering installing underground power lines in place of overhead wires. this is an age-old debate which has reignited with the aftermath of this recent storm. energy experts point out burying power lines is costly, a minimum of one million dollars per might. it takes a lot of time and money to find the problem if they fail. plus there are other hazards. >> when you underground the lines you're not really removing the risk of damage, you're simply shifting it. you're taking the risk from falling debris, and wind, and falling trees, and uri placing that with the risk of water in u.n. dation. >> reporter: this is a transformer that is down. we're talking about not only power lines but cables and broadband and power lines for the phones also down. that transformer right there actually goes to an underground

system. you can see why a lot of people are still without power today. back to you. martha: boy, that must be so awful for those folks, incredibly frustrating. thank you sr*fp. laurvery much. laura ingle. bill: the he said she said continues between herman cain and his growing number of sexual harassment accusers, including the first woman to go public on this. >> i sat there trying to recall who she was and if i knew her. and i am honestly telling you, i can't even recall knowing her back then. >> he did acknowledge that he remembered me. for him to go back on that is just what he's doing now which is not telling the truth. bill: we are hearing a bit more about this. in a morning staunch cain

supporters, martin luther king's daughter is here on this. stay tuned for that. martha: an asteroid the size of an aircraft carrier nips right by us. bill: look out. [ male announcer ] our nation's veterans are real-life heroes.

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decide to go public with sexual harassment claims against cain r-frplt the presidential candidate says these accusations will not derail his campaign. the latest "real clear politics" average says mr. cain leads the republican pack. there are the number as they shape up, the most recent ones we've seen. mitt romney not too far behind. charles krauthammer says that cain needs to be careful about playing the blame game in all of this. watch. >> you can't go around making charges if you don't know if they are true or not. remember, last week his chief of staff on the special report blamed the perry campaign, and they had to sort of walk that one back. he's under attack himself he should be a little about it careful about attributing that. martha: we are joined by dr. aveta king. she is the dr. martin

luther king, jr. you shared some of your own take on all of this. you think that these claims are untrue. >> there is a story called the crucible and everybody saw goodie dance with the devil. but goodie didn't dance with the devil, it didn't matter who said goodie danced with the devil. this is a racial ploy, it has racial implications. mr. cain dares to bring a plan to america that will change our lives, life, and the pursuit of happiness for all people. because his critics cannot find fault with that they want to attack his character and i don't think that is right. martha: you just heard charles krauthammer say it's wrong to point the finger at who may be behind this if anybody is behind this besides these woman. you claim, though, where do you think it's coming from? >> as i say the establishment. martha: who do you mean when you say that.

>> definitely people who are republicans, democrats, some people that are not ready for truth. they fear true. they want everything to stay the same way. you don't let an unconventional person with an unconventional campaign say, hey i'm not a politician, i'm a businessman, if you change things and do things differently, many people may think they will be out of jobs. martha: you said there were racial implications here. >> we have an african-american president the man with brown stkeupb. the top contender in the republican party, a man with brown skin, the african-american man who is the epitome of the dream. mr. cain graduated from moore house college. he's a businessman, a preacher. martin luther king jr. was a breacher. they have so much in common, the african-american experience truly, so to have the voice of the true african-american

experience facing the president of the united states, that is a picture that america has never seen. i believe america is a little nervous about it but the people are not so nervous and the polls are showing that. martha: you think that the democratic establishment, looks at him as a threat to the african-american vote in this country. >> you know what is so threatening about mr. cain's position, he says no more well wear. maybe work fair, that is a way of saying it but his language is much more clear. in other words, we'll help the people by allowing the people to help themselves. we don't have to cripple the people but we are going to empower the people. we are going to give the people opportunities. and so if you give the people opportunities, you give the people power, i believe the establishment is afraid of that. they like the control. martha: i understand what you're saying. as we discussed that on the way into this. who knows where this came from, if indeed it came from anywhere other than these women deciding they wanted to speak out. what do you think about these women?

i heard mr. cain last night, he sounded very believable in his statement that he ha* he doesn't even remember this woman. then you hear the women come out. they may have other things in their backed that cause people to raise an eyebrow, however, that in and of itself does not change whether or not -- if it happened it happened, if it didn't it didn't. >> when we watch people historically and they have to remember something and ask them to keep an account, they say it's like peeling an onion. a person who is telling the truth will say, i don't remember, i have to think about that. not rehearsayed and you know exactly what you're trying to rehearsay, you can remember a script but real memory, it takes time, you know, for instance when one of the women, her lawyer was examined and several times he says i don't rerbgs i don't recall it that way. nobody went nuts and said he was lying when he said he didn't. but when you have mr. dan cain

say, i don't remember this i have to think about that, oh he must be hiding something. no he is remembering and it's like peeling onions. martha: we'll see where all this goes. thank you very much for speaking on his behalf this week. dr. alveada king a pleasure to talk to you. >> thank you so much. bill: 11 minutes before the hour now. jon scott is working on a whole lot of stuff in the newsroom on "happening now." what is going on jon, good morning. jon: good morning to you. there is a lot going on today. right now we are looking at the election results from those state-wide races just in. we will tell you what it means for the races in 2012. chris stirewalt and political expert stewart rottenburg join us. plus the threat from iran, mahmoud ahmadinejad insists iran will never halt its nuclear program, this as the u.n. says it's developing nukes. what do the u.s. and israel do now. the very latest on the intensifying sex scandal

embroiling the university of pennsylvania and its football program. is it the end for joe paterno? that's it on "happening now." bill: more on that breaking news jon just mentioned on the wingest coach in college football history. he is revered in the game. now there is news on the future of paterno. after a stunning child sex-abuse story exploded over the weekend, that's next. >> i wanted to know if joe pa is involved, he's the face of penn state and he's always just been the voice of which is come and everyone looks up to him. so who ordered the cereal that can help lower olesterol and who ordered the yummy cereal? yummy. [ woman ] lower cholesterol. [ man 2 ] yummy. i got that wrong didn't i? [ male announcer ] want great taste and whole gin oats that can help lower cholesterol? honey nut cheerios.

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bill: i want to get back to the breaking news now. moments ago joe paterno put out a statement. he says he will finish the season at head coach at penn state. he said with the benefit of hind sight i wish i did more.

i grieve for the children and their families and i pray for their comfort and relief. i have come to work every da day for the last 61 years with one goal in mind to serve the best interests of this university and the young men who have been entrusted to my care, i have the same goal today. live to david lee miller, he is in pennsylvania. david lee, good morning. >> reporter: let me tell you the latest developments right now. we understand that joe paterno a few moments ago left his home, his home is but a few miles from the campus. it is the expectation that he is coming in my direction to the campus, presumably to speak to members of his team, but there has not been any formal announcement about his activities today. we are also told that there is not going to be a news conference, but we've seen events change here rapidly at the last minute. the reaction here on campus, many people not surprised to learn that joe paterno is going to be retiring at the end of

this season, but there is a profound sense of sadness here. many people say this a man who spent 62 seasons here should have a better legacy than perhaps the one that he is going to be leaving behind. on friday the board of trustees for penn state is going to meet, and this scandal, and investigation, bill nowhere near over today with the announcement of paterno's retirement. the board of trustees is going to meet and form a special committee to determine what went wrong here with the sex-abuse allegations, who is to be held accountable and to make sure it does not happen again. perhaps one other person who could be implicated in what happened here and could lose his job is the president of this school. many say that he should have called the authorities in and that he has to be held more accountable. so the investigation continues, and joe paterno expected to meet with the media perhaps tomorrow but we are told not today.

bill: he said at this moment the board of trustees should not send a single minute discussing my status. they have far more important matters to address. could the board of trustees change the retirement date, or even the resignation date to now, or this week and not the end of the season? >> reporter: well presumably the board of trustees can do anything they want. if you look at the statement they made, bill, they are going to have a special committee that is going to put together a report, and at some time in the future we are going to learn the outcome of that report, presumably nothing immediate is going to come from the board of trustees, but that could change too. bill: good clarification david lee. that is video of joe paterno leaving his home a moment ago. we will watch and see what happens today on campus. back right after this. when you have diabetes... your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's new glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly

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