>> brian: wow. that is amazing. >> steve: next time we give her a squeegee and she can do the windows on the second floor. tomorrow our summer concert series, oar, so drop on by. >> brian: we're rolling out the turf. good job, melissa. >> melissa: thanks for having me fox news alert. new signs our job market is in real trouble. weekly unemployment claims number is in and barely shifted from a week ago. 387,000 americans file for first time unemployment benefits. good morning. i'm bill hemmer. welcome to "america's newsroom.". >> i'm patti ann browne in for martha maccallum bill: stuart varney says what recovery? stuart varney from the fox business network. >> what we've got, bill, is

what we've been saying for three months, that the economy is head in the wrong direction. these are very high numbers 387,000 new claims for jobless benefits. that is far too high a number three years after a recovery was supposed to begin. the trend is up. it should be down. it is up. what it means, bill, with this sense of the direction for the economy there is very little likelihood of serious improvement in the jobs picture before the november election. bill: that keeps it first and foremost in issues in america. you're 4 1/2 months away. why is there that little chance of improvement? >> because there is that sense of direction. if we were gradually expanding if the economy were getting more and more strong i would reverse the position and yeah, we have good chance of improvement before the election. that is not the case. we're going in the opposite direction. the economy is weakening as we speak. that's why very little

chance with this sense of direction for the overall economy, little chance improvement in the jobs picture. bill: let me get back to that point. you mentioned revised number. the four-week average rose for the fourth straight week up to 386000. that is the highest level since december. >> yeah. bill: that revised number tells us what? >> that is the trend you see. that is the sense of direction we've got going here. if you take a four-week moving average you're moving away from week to week ups and downs. it is a more gradual picture. that picture is negative, it is an uptrend. not a downtrend. we finished the recession three years ago almost exactly. now we're moving up. number of people claiming first-time jobless benefits should be down. it is not. it is up. bill: is this our issue or is this driven by europe, china or any other factor you can think of? >> this trend predates the more recent problems with china and europe. it is therefore primarily internally driven.

bill: stuart, thank you. a lot to talk about for you at 9:15 on fbn. >> sure. bill: stuck in the mud. let's get it moving. patti ann: this comes on the heels of a troubling report from the fed. the board lowering its expectation for economic growth and raising its forecast for the unemployment rate. back in april it projected the unemployment rate would be 7.8 and 8% this year. now it is seeing a higher number. eight and 8.2%. bleak numbers for the economy too. back in april it foy cast the economy would grow to just under 3%. it is revising those numbers down to more like 1.9 to 2.4%. bill: on the topic of the economy we have a new poll from the key battleground state of florida. quinnipiac university asking voters regardless how they vote who do you think would do a better job on the economy. 48% chose mitt romney. 44 choose president obama.

watch that with 29 electoral votes coming in florida in november. patti ann: it's a full-scale showdown between congress, the white house and our nation's top law enforcement officer. a house committee voted to hold eric holder in contempt over the "fast and furious" gun program. a full house vote is expected next week. the republican leading the investigation says this all could be resolved if attorney general holder simply turns over the documents in question. mike emanuel is live in capitol hill. mike, what do we know about the next steps here? >> reporter: patti ann, you mentioned at the top, next week there will be a vote in the house of representatives. speaker john boehner and eric cantor issued a statement after the vote late yesterday saying that the full house of representatives would vote next week to hold the attorney general in contempt of congress. they did legal a little wiggle room to say there is still time if he wants to turn over the documents that have been subpoenaed they would give the house oversight committee time to

redo -- review them to perhaps resolve this matter. chairman darrell issa of the house oversight committee says the president exerting executive privilege in this matter is over the top. >> so his assertion is about, for example, the atf director sending an e-mail we asked for in which he says, hey, we've got to stop the gun-walking. i read the wiretaps. this is terrible. we have a sworn statement by bipartisan statement, by the former atf director that he sent it but he doesn't have a copy it. that wasn't directed to the president yet they're asserting executive privilege as to that. >> reporter: iowa senator chuck grassley who has been investigating "fast and furious" for the last 18 months was totally surprised that the president exerted executive privilege. he has questions for the attorney general, other law enforcement officials but never thought it went all the way to the president. now he has questions for president obama, patty, ann. patti ann: what is the

attorney general's reaction so far? >> reporter: he is in denmark so far. he says the committee's actions are unwarranted. that seems to mirror what he said after the committees vote quote, unfortunately chairman issa rejected all efforts to reach a reasonable accommodation. he has chosen to use his authority to extraordinary, entirely unprecedented action to prevent a unavoidable conflict between congress and the executive brand. he is hopeful this could be resolved but didn't give any details. patti ann: mike emanuel on capitol hill, thank you. bill: there is frustration building for brian terry's family, fatally shot by suspected drug smugglers during a firefight inside the arizona border. those smugglers allegedly used two assault rifles from the botched "fast and furious" gun-running sting. terry is one of 70 border patrol agent killed in the line of duty over the past

50 years. brian terry's family, they want answers. they have this response to yesterday's events. i'm quoting now. attorney general eric holder's refusal to fully disclose the documents associated with "operation fast and furious" and president obama's assertion of executive privilege serves the to compound this tragedy. it denies the terry family and the american people the truth, end quote. patti ann: we're also getting reaction from those on the front lines protecting the u.s. border. the president of the local border patrol union worked with brian terry and he says executive privilege should not block an investigation into why terry was killed. >> that's very, very disappointing because he railed against bush for the number of times that bush invoked executive privilege. again if we're, if issa was searching for specifics about the investigation i could understand that. but from my understanding congressman issa is looking to see who should be held accountable for letting

those guns walk into mexico and for brian terry's murder. patti ann: judd also says people in the justice department, quote, have blood on their hands. bill: as president obama claims executive privilege, fox news contributor charles krauthamer blasting the white house. they leaked national security information but lock down the details on "fast and furious.". >> if it's national security then they have no regard for secrets and here all of a sudden extremely guarded. makes you wonder what they're hiding. bill: here is what the actions of the white house mean. executive privilege allows the president to with hold from congress documents revealing internal white house communications and also decision-making of the executive branch of government. historically a challenge of executive privilege rarely reaches the courts. the idea of executive privilege is not explicitly mentioned in the constitution but the supreme court ruled it to be part of

the separation of powers doctrine. will this move hurt president obama in the election? how does this play across america? we'll examine that throughout the morning here. in meantime, nine minutes past the hour. we're just getting started, aren't we? it is the biggest issue on the trail, the economy and getting americans back to work. we told but the brand new jobs number that is out. we'll get reaction from a leading house republican who says he has the idea to solve this thing. patti ann: on a big news day we could also learn the fate of president obama's health care law today. we're awaiting decisions from the supreme court. they could come very soon. bill: that could be 50 minutes away. stand by. major flooding sending folks to higher ground, literally washing animals out of a zoo. the worst flooding these folks have seen in 150 years. >> it's devastating. i've been a member of this community my entire life. i worked here for just under a year and it's, it is incredibly devastating to see it like this.

patti ann: a deadly plane crash overseas. check out this image. a military aircraft going down in the indonesian capital, jakarta. at least eight homes were set on fire. seven crewmembers were onboard. six are dead, another in critical condition. victims on the ground have been rushed to the hospital. the indonesian air force is investigating. bill: the number of americans heading to the unemployment line continues at a steady pace. the numb is still too high to make a dent in the direction of the economy. the four-week average has not been this high since december. i spoke with house majority whip kevin mccarthy moments ago when the numbers came out. kevin mccarthy, good morning the thank you for your time today. >> good morning. thanks for having me. bill: what do you make of this jobs number? >> it is not a good number. you still see a weak economy. listen to the fed yesterday lowering the ability for where unemployment is still

going to be high, over 8%, going into the end of the year. this is bad news. because you don't see new job creation and in the more important part you have coming you have the tax increases looming towards the end of the year. we need to stop that based upon our numbers coming back and the lack of economy growth. bill: seems if we're stuck in the mud and we're stuck in the mud 4 1/2 months away from an election. now, does congress have the where with all to move something forward, or is this what america gets for the moment? >> well, congress has moved a lot. it's the senate. we have 30 bills sitting over in the senate that are job creation. but even today, we have a job creation energy production bill sitting on the floor of the house that will pass. there are seven different bills. if you look across america, look at the numbers, they're bad numbers. if you go to north dakota, unemployment is 3%. they don't even have enough houses there. government is lowering taxes. if you go to work at a fast-food restaurant, you're making $15 an hour.

it is a different place than the rest of america. why? because of energy production. they created an energy policy in that state and on their private lands they have been able to increase production. they have surpassed california. they have even surpassed alaska in their production. this could happen to the rest of america, putting people back to work. bill: what you suggest is that congress is sitting on their hands? but you point a finger at the white house and you point a finger at senate democrats. we talked about this issue now for months. nothing is moving. why not? >> this is, well, this is a great frustration. you look at the senate, nothing moving there. they try to stall it. the president, even though we have a job creation bill on the floor today bipartisan votes a veto threat on it when he says he is for all of the above for job creation. this is not working. the president said if you pass the stimulus unemployment would never go above 8%. 40 months later it consecutively has been above 40%.

we need to get the country moving again. focus on small business. focus on job creation. the number one thing we could do is energy production that will help us. we'll change our trade deficit. put people back to work and change our foreign policy as well. bill: give you a shot at this. you have a bill called the domestic energy and jobs act, right? >> yeah. bill: one of the main headlines in the bill you suggest it would drive a manufacturing renaissance that would be a catalyst to america's overall recovery. defend that. >> well the most important thing when people look to manufacturing it is the cost of doing business, the cost of manufacturing. energy costs is the number one factor. if we lower the energy costs and make it consistent so you don't have peaks going up and down, people will come back. we have been beginning to do that when it comes to natural gas. you watch. some manufacturing jobs have come back because we allowed greater production of it. we can do the same thing across the board. we have a holdup in bureaucracy. the number of federal leases that have been put forward are at the lowest level

since 1994. we have a number holding up that could create more than 65,000 jobs. why do we do that in a down economy? why do we put people back to work. why does the bureaucracy have to hold these back? bill: what is the measure of how your message is getting through? you're a guy in california. you're in washington five days a week. do the american people get it? do they know the difference? >> i think the american people are very frustrated. they're frustrated with lack of action what we see and stalemate. tell you every place i go when they talk about small business they look at the bills the house passed and they're supportive. they question why the senate won't bring them up. we'll continue to fight. we'll continue to pass legislation that creates jobs frustrated with the senate. we'll not give up. we believe in this country. we brief in america and we believe it is worth fighting for. bill: you say they're making 15 bucks an hour in south dakota? >> i paid more than $250 a night to stay at a best western. i was lucky to get a good

home. bill: that is a good gig, 3% unemployment in north dakota. kevin mccarthy we'll see if your bill goes anywhere live on the hill. >> thanks. patti ann: a budget crisis of epic proportions. states realize how deep in the hole they are and they're scrambling for a solution. bill: a powerful republican ripping the white house for national security leaks. that was before the latest secret went public. senator lindsey graham is fired up. wait until you hear what he is saying now. >> yes. this is exponentially worse. there is no way on god's green earth you will convince me this scenario doesn't justify a special counsel when everybody on the democratic side said you needed one for valerie plame and jack abramoff. we'll not let this go. i don't know where the evidence will go. i want a process i can trust. i don't trust this process.

♪ we all need it. to move. to keep warm. to keep us fed. to make clay piggies. but to keep doing these things in the future... at shell, we believe the world needs a broader mix of energies. that's why we're supplying natural gas to generate cleaner electricity... that has around 50% fewer co2 emissions than coal. and it's also why, with our partner in brazil, shell is producing ethanol - a biofuel made from renewable sugarcane. ♪ >>a minute, mom! let's broaden the world's energy mix. let's go.

with two times the points on dining in restaurants, you may find yourself asking why not, a lot. chase sapphire preferred.

bill: there are two breaking develop maentsd in the trayvon martin shooting matter. first the florida police chief who was in charge of the investigation has now been fired. sanford city manager in florida made the call on chief bill lee saying that lee had lost the trust and respect of elect the officials and the confidence of the entire community. there is new evidence released in the case. george zimmerman explaining his version of events from the night of the shooting. you will hear what he says about all that coming up. patti ann. patti ann: bill, there's a shocking new look at public pensions and that budget crisis it is creating from coast to coast. states are in a deep hole. just how deep? a whopping one trillion dollars according to a new study. new government, or now state governments are struggling to meet these obligations that they made to these public citizens who depend on that money. now we have a fox business network's charles payne to

go over all this with us. >> hi, patti ann. this is from the pew center. the number they came up with, 1.3 trillion. i read a report that the obligations could be 300 million to $4 trillion. patti ann: my gosh. >> we're in a very dire situation. patti ann: it varies a lot from state to state. some doing better than others. illinois has only 45% of the money it needs to pay these obligations. they say you should have 80%. how bad is it? >> to your point, according to the pew center only wisconsin has 80%. that is how bad it is. you mentioned illinois. this is one of the states with extraordinarily high unemployment. to combat that they are raising taxes. when you raise taxes your most innovative citizens leave. your most successful businesses leave. they make the problem worse. hear is the problem. a lot of public employees were made the promises. they have what is known as defined plan.

they were promised certain amount of money over certain period of time. how did they come up with the money? they assumed they would make 8% a year. how? if wall street made that kind of profits they would be in front of congress. so, here we are now in this real dire situation and, what you're probably going to see is public employees will have to put a lot more into the kitty and take fewer benefits. probably work longer. maybe not have a defined plan but like rest of americans a 401(k). having said that you will probably see where they have to invest this money in things -- you can't put it in treasury bond. you can't put it in something yielding one or 2%. patti ann: right. >> you have to go for the gusto. you have to take more risk with respect to the stock market. i like the idea to be quite frank with you. even some people who railroad retired where these promises were made, they may have to be broken. patti ann: you know, that is where you get people who are very upset. look, we settled for lower salaries and other sacrifices

because we were trading off for these long-term benefits that were promised to us. you can't take that away from us. you made a deal. >> you're right although some people would argue about the lower salary. a lot of these public service sector workers do make more money than their private counterparts over the last 10 or 20 years. that has been the trend. some gave up social security. some said i'm all had-in. hear is the problem. it is inherent around the country not just for state or public workers but all of us. if you hit 65, there is 95% chance, man or 85 or woman live to 87. we haven't modeled that in. we haven't figured that out. it will be very painful. we look over in europe half the problem is this problem exempt on steroids. in italy the public sector workers make so much money and greece the same sort of thing. it is good we're zeroing in on this right now. hopefully solutions will come. this is one problem that can not be kicked down the road. patti ann: charles payne, thanks very much. fox business network.

bill: fox news alert right now. hold onto this. 35 minutes away from a possible ruling from the u.s. supreme court on two issues of major national significance. health care legislation and the immigration law in arizona. now we say today because decisions are possible on this thursday morning, or perhaps not. we are all waiting just like you at home and our reporters on capitol hill there at the u.s. supreme court. we're all on standby mode. if it comes down, 10:00 a.m. eastern time, you will hear it first here on the fox news channel. so stand by as we do as well. patti ann? patti ann: meanwhile heart break in the heartland. floodwaters swamp a major city. janice dean will explain how bad the situation is. bill: look at that mess. president obama blocking congress on access to documents on a botched gun-running sting. questions today, does he have the authority to do this and will it affect his race for the a second term?

we have a terrific panel. they will debate in moments when we continue. [ male announcer ] eligible for medicare?

that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you.

so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, they pick up some of what medicare doesn't pay. and save you up to thousands of dollars in out-of-pocket costs. call today to request a free decision guide to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks, and you'll never need a referral to see a specialist. there's a range of plans to choose from, too. and they all travel with you. anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it.

call today. remember, medicare supplement insurance helps cover some of what medicare doesn't pay -- expenses that could really add up. these kinds of plans could save you up to thousands in out-of-pocket costs... you'll be able choose any doctor who accepts medicare patients. and you never need referrals. so don't wait. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. bill: we have a dangerous situation now in and around dell luth, minnesota. hundreds of people were ordered out of their homes as torrential rains dumped

as much as 10 inches on the area. the rising waters washing out roads and leaving matters like this to attend to. bridges were closed in the area. locals can't believe what is happening in scenes like this. >> have you ever seen it like this before? >> no. first time. i thought i was safe. i never got flood insurance. figured i didn't need it. now i need it. >> the whole road everywhere. water was gushing everywhere. when we came looked like rest of the road. obviously didn't see it or we wouldn't have road into it. >> the wall caved in. time to get away from there. u. bill: pictures of the roads buckled and cars jammed there? patti ann: incredible. bill: lake superior zoo, number of animals drowned there. others ran away including a seal. the seal was found on a city street. all the missing animals were found. they will have a new shelter very soon. meteorologist, janice dean

is on this. what was this, flash flooding? >> absolutely. some cases 10 inches of rain in a 36 hour period of time. there is the satellite radar over and you sea wave after wave after wave of moisture moving through this area. record breaking rainfall through this area. major flash flooding. river flooding in the due luth area. bridges and roads are shut down. we'll be dealing with flooding downstream along the mississippi river and the st. louis river. so it is not over yet. yeah, clear skies around the duluth river or the duluth area, but of course all of that rain has to go somewhere. so it will go downstream. we'll continue to monitor that region. of course flood warnings, even though it is clear skies, we still have flood advisories out for this region. historic flooding. we're talking about nine to 10 inches in just a matter of hours.

bill: they have taken a punch, haven't they, janice? >> they have. we're still talking about extreme heat and tropics this weekend. florida could get hit up to a foot of rain. bill: triple digit the here in new york. digging that. see you, janice. bit of context. this was the heaviest two-day rainfall in duluth, minnesota, in 150 years. 50 miles of pavement either damaged or destroyed. if you poured that much water in an area one quarter of the size of duluth, it would equal about 2.7 billion gallons of water. and now you get to understand the pictures the way they turned out. patti ann: it is incredible, absolutely. new backlash after president obama invokes executive privilege in the "fast and furious" scandal. critics say it might cost him the general election. just five years ago then senator obama accused president bush of hiding behind the privilege. >> there has been a tendency

on the part of this administration to try to hide behind executive privilege every time there's something a little shaky that is taking place. and i think, you know, the administration would be best served by coming clean on this. patti ann: all right. let's discuss this with our panel. for the political angle we have chris hahn, former aide to senator chuck schumer and fox news contributor and alice stewart, former press secretary to michele bachmann. for legal angle, george sekulow, american center of law and justice. thank you for joining us. >> great to be here. patti ann: we heard senator obama saying bush shouldn't behind hide behind the privilege. american people deserve to know what is going on. >> now he is the president and senator. he has to govern. that is the first thing that is different. more importantly president bush hid behind executive privilege six times and really did it to protect aides who were intentionally

attacking a cia agent in the field. what is happening here is there are a law enforcement operations in effect. there are criminal justice cases that are being brought. and there are chilling effects based on attorney/client privilege and attorney work product that are being protected here. it is very, very different. i don't think this will have any play in the general election other than to remind americans of how the republicans like to attack, attack. patti ann: all right. >> chris, we have to remember president clinton invoked executive privilege 14 times. so but we can't act as though asserting this privilege is anything new. we have to ask ourselves, is it proper in this case. in this case it's not proper. the american people deserve to know what happened with agent terry. his family deserves the right to know. in terms how this affects the president, look he came into office promising openness and transparency, the most open administration we'll ever see. this is far from it. this is yet another broken promise on the part of the president. >> the american people know

what happened here, alice. patti ann: legal perspective, we have jordan, with us. some people say there is a challenge whether or not it was proper for the president to invoke the privilege under these circumstances. how so? >> there is one important part. the bush loves to talk about bush's sus of executive privileges clinton 14. courts don't care. they look separately. all these numbers meaningless in the point of law. just a you at thatting point. doesn't matter. there are two kinds of executive privilege. one is presidential communication privilege. that if you're talking to the president. that is nixon kind of situation. a higher bar overcome. not asserted here. what is asserted here is very general but shouldn't be as general as it was. you have to still tell people what are you trying to get a privilege over, what documents. it is called deliberative discussion privilege. so what the problem though for the department of justice eric holder has been testifying since 2011 about this. and, they're asking about a letter that was misdrafted,

ten months later after february, they get that in 2011. saying we don't know about gun-walking. he starts testifying. by december, they withdraw the letter. all you have to do to overcome this bar, this privilege bar is show the information will give you info on misconduct. so it is not as high of a bar. they have laid out the misconduct for congress. patti ann: so if there were challenged by the republicans would that challenge succeed in your opinion. >> if you look at the d.c. circuit court of appeals they have been very weary. they were weary of harriet miers invoked the under the bush administration, and rove and the chief of staff. it is note partisan. to do this you have to be very specific and exactly what is covered by the privilege. unless there is direct communication on the president on actual policy, then this is something --. patti ann: jordan's point, this only, executive

privilege only deals with communication from the president. there are reams of documents that attorney general holder communicated with and that is what issa is trying to get at. patti ann: all right. >> the problem we shouldn't have this close to the election but we wouldn't if he -- >> what they're failing to mention even though the courts are weary, the courts are wary to get involved and larry overturned it. we have a political witch-hunt. we have darrell issa who promised to be an attack dog. he is being an attack dog. good boy, darrell issa. good boy. patti ann: thank you all three of you for insqoing us. chris hahn, alice and jordan. thanks for joining us. bill: outrage directed at the white house after sensitive national security information once again ends up on the front page of a major american newspaper. senator lindsey graham is up in moments. did you hear this from him just last week. >> every democrat told the bush administration, we don't trust you when it

comes to investigating what happened with valerie plame. we don't trust your administration to go after abramoff because too many republicans are potentially involved. to expect me and my republican colleagues to trust this crowd, for get it. my new hearing aids

changed my life. i feel so much younger. my husband was able to hear little things again, like the laughter of our grandkids. it's amazing. i can have fun with my friends again. ready to reconnect with your friends and family? the aarp hearing care program provided by hearusa can help you get back to living life. call hearusa... your satisfaction is 100% guaranteed. aarp members enjoy exclusive discounts on a wide range of digital hearing aids for crisp, natural sound even in crowded environments, with a 90-day risk free trial from providers you can trust. i'm enjoying my freedom again. even conversations in noisy restaurants are easy. not an aarp member? join today.

and then take advantage of the aarp hearing care program provided by hearusa. call hearusa ... and reconnect with your world today.

patti ann: 42 minutes past the hour. we have breaking developments in the sex abuse trial of former penn state assistant coach jerry sandusky. the judge throwing out three of the 51 charges in the case saying those charges were not supported by testimony. we are expecting closing arguments this morning. shocking video of a seemingly random attack on a bus in philadelphia. police rereesing this surveillance video to find the woman. the victim was not badly hurt. prince william turning 30 years old in private with family and friends. the prince stands to inherit more than $16 million today. not bad.

bill: man. party time, huh? happy birthday. i like that little fancy walk. patti ann: never done that before. bill: like to mix it up. that is style, patti ann. top republican senator outraged over yet another intelligence leak. this time the leak reveals a computer virus developed by the u.s. and israel intended to crush iran's nuclear program. south carolina republican lindsey graham back with me this week. he sits on the senate armed services committee and the senate judiciary committee. good morning to you. >> good morning. bill: i don't know you settled down since last week, have you? you're still fired up. >> i count to 10 a lot. i've gone to being angry to just resolved. we had the discussion last week about the damage being done to our national security programs, designed to protect us all. i guess i have concluded this, bill. there are senior officials in the white house consciously engaged in leaking classified

information to the media, to make the white house and this president look strong on national security. there's a good, good evidence trail to suggest that. and attorney general holder's decision to appoint two special, two u.s. attorneys that he controls, that do not have the power of a special counsel, to look into this. one of which was a donor to president obama and a campaign volunteer, is not within precedent of what we've done in the past. bill: you don't think that is sufficient then, clearly, based on that? >> it is clearly not. and put it in context of the executive privilege claim. you know, generally speaking, executive privilege is designed to protect a president when he interacts with his, his agents, his agency with the executive branch members he is supposed to supervise. this is a probe into who authorized a program that led to the killing of a border agent and it is not a

political inquiry. we're trying to find out how "fast and furious" got so out of control that led to the death of agent terry. the president said he had no knowledge of it. so it is just an odd time to claim executive privilege. if the president himself says he has no knowledge of the program, then why stop the congress from finding out how a program got out of hand at the point the agent got killed. bill: in your first answer you said the leak comes from the white house. >> sure. bill: are you ready to name names? >> well, i don't know the names. i can tell you top level senior white house sources abound, one of the book rue veriers of mr. sanger's book, talked openly about tom donlan the national security advisor gave unprecedented access to the writer of the book that disclosed one of the computer virus attacks. since our last interview there have been two front page news stories in "the washington post." one describing a spy program we have in africa.

the other describing the flame virus attack supposedly by israel and the united states. this happened after our last interview. we have a national security crisis on our hands in terms of leaks, the amount of damaging done. i was with the israeli ambassador yesterday. i can promise you, this is hurting our relationship with our allies throughout the world. bill: what did that ambassador tell you specifically as it relates to iran's nuclear program? >> we didn't talk about that. he talked about how dismayed he was and quite frankly how much time he spent dealing with front page news stories talking about a classified program allegedly between israel and the united states. now who wants to work with us in the future? the saudis have been under siege. supposedly in the yemen underwear bomber plot, a saudi agent was involved, a double agent. we've done a lot of damage in this country. to my democratic colleagues, joe lieberman really has done the right thing here.

i'm very disappointed that you would take this stand because when president bush had problems on his watch, almost all of you insisted that the valerie plame investigation involving outing a cia agent be done by someone outside the bush administration. jake abramoff was a allegation of a lobbyist dealing with high-ranking republicans. all of you insisted a special counsel, independent counsel be appointed for the good of the nation. you're silent now and that unacceptable. i am resolved to make sure that eric holder has to pick someone different and new with the powers of a special counsel that he doesn't control that could do this in a way good for the nation and it is unacceptable the process, he laid out is unacceptable. the damage being done is enormous. we will not let this stand. this is not good for the country. bill: two questions, you're not letting this go? >> no. why should we let it go?

bill: just to pick up on your point you agree with senator lieberman should be investigated outside counsel and outside the department of justice. this program was launched apparently five years ago. is it possible that perhaps it has run its course and perhaps, you know, you're five or six or seven generations down the road with new software programs heading into iran? does that make you feel any better? >> no. is it possible that an ally who allegedly helped create this program will be detered in the future no matter how long ago it was? i can not tell you the amount of damage that we're doing to our ability to protect ourselves. if i let it go, i'm saying, i'm okay with the process. i'm okay with the fact that we're allowing a white house basically to investigate itself regarding national security leaks that have gotten dianne feinstein, the democratic head of the intelligence committee, heartbroken.

why would anybody let, why would any democrat not ask for the same treatment here that you insisted on before when the damage being done is exponentially worse? it makes no sense. if we let it go, bill, it becomes a precedent in the future and all of us suffer. the men and women who are fighting this war and who are risking their lives, they deserve better than this. bill: senator, thank you. lindsey graham, republican from south carolina. >> thank you. bill: go to foxnews.com /americasnewsroom. bya box. bottom right-hand corner. shoot me an e-mail at hemmer@foxnews.com. on twitter, because you asked, bya. about this or anything else coming up today. speaking of which we could be 10 minutes away from the supreme court. we might be. we'll find out together. patti ann: meantime we have big heat advisories across the country. it will really get dangerous in some parts. in new york city it is already in the '90s. plus information to get you prepared for all of that coming up. bill: there sup roar over contempt citation for the attorney general.

congresswoman nancy pelosi lashing out at karl rove says she would have put him in jail. what does he say? we'll talk to him live as he responds in minutes. no matter what small business you are in, managing expenses seems to... get in the way. not anymore. ink, the small business card from chase introduces jot an on-the-go expense app made exclusively for ink customers. custom categorize your expenses anywhere. save time and get back to what you love. the latest innovation. only for ink customers. learn more at chase.com/ink it's time to live wider awake. only the beautyrest recharge sleep system combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils

to promote proper sleeping posture all night long. the revolutionary recharge sleep system... from beautyrest. it's you, fully charged. experience thehas your ticket pressure-relieving comfort of tempur-pedic, and sleep risk-free with sleep train's 100-day money back guarantee. get 36 months interest-free financing:

no down, and no interest for 3 years. plus, get free same-day delivery. sleep train's 100-day money back guarantee, interest-free financing, and free delivery? that's the ticket! sleep train's ticket to tempur-pedic is on now. ♪ sleep train ♪ your ticket to a better night's sleep ♪

patti ann: a dangerous heat wave hitting a huge part of the country. heat advisories are underway for 11 states right now launching warnings in several parts of the country. meanwhile at a high school graduation in connecticut more than two dozen people suffered from heat exhaustion. many were rushed to the hospital. folks are doing all they can do to keep cool. >> it is too hot. now i'm leaving. it is too hot. >> going good but it is very hot out there. people are passing out. >> i think this was awesome idea. i was in stands for an hour 1/2. i was ready to pass out.

so this is great. patti ann: anna kooiman is live in new york city where it is already in the 90s. anna, hi. what is the country dealing with? >> reporter: we're starting to melt on the plaza on sixth avenue. in a separate ceremony in new jersey multiple relatives of high school graduates were hospitalized for heat exhaustion. the scorching temperatures are expected to stick around from yesterday. record breaking temperatures from new york city to burlington, vermont. look behind me, the ticker there is 90 degrees at 9:54 in the morning. but these scorching temperatures are expected to stick around. more than 450 cooling centers are open around new york city which is under a hot weather advisory. mayor michael bloomberg encouraging people without air-conditioning seek out cooler spaces or visit city beaches. >> we all think it is tough and nobody thinks it is a big deal. sadly we have to relearn a

lesson. it is a very big deal. we all should be very careful. >> reporter: paddedty ann, every state in the lower 48 except north dakota is expected to have 90-degree weather until saturday. patti ann: wow! what are doctors are recommending to keep people from succumbing here? >> reporter: alternate with water and drinks with electrolytes. stay away from alcohol and caffeinated beverages like coffee and soft drinks because that could make you dehydrated and bring on these exhaustion. >> if you notice yourself or loved one is experiencing signs of nausea, list lessness, headache. remove yourself from the heat and start hydrating. certainly if you notice a loved one starting to act confused that is a true emergency and you need to get them to the hospital right away. >> reporter: our fury friends too. reminding not to leave animals in the car. temperatures can reach 120

degrees in mere minutes. they can suffer from severe brain injuries or death if they're trapped inside. patti ann, back to you. patti ann: anna kooiman live in new york city. bill: third week of june, sister. patti ann: barely getting started. bill: it could be a huge day in american history. the fight over president obama's health care law could come down at any moment now. is today that day? we will find out together at the top of the hour here on "america's newsroom." teachers get the training...

...and support they need? schools flourish and students blossom. that's why programs like... ...the mickelson exxonmobil teachers academy... ...and astronaut sally ride's science academy are helping our educators improve student success in math and science. let's shoot for the stars. let's invest in our teachers and inspire our students. let's solve this.

bill: it is 10:00 in new york city. 10:00 for the supreme court t could be moments from now when the u.s. supreme court hands down significant opinions. we might get two of them today. the president's health care overhaul ruling, and arizona's controversial immigration law known as senate bill 1070. it is a brand new hour of "america's newsroom." more on standby here. i'm bill hemmer. martha has time with the

family. how are you doing? patti ann: i'm happy to be here in her place. i'm patti ann browne. all eyes are on the supreme court. we're awaiting word from the bench. there is a lot at stake here for the white house in both of cases we mentioned. bill: especially in an election year. karl rove, chief visor to former president george w. bush and fox news contributor. welcome from austin, texas. we're on standby. we don't know what will happen here. this is a pretty good secret at the moment. is today the day do you believe, karl? >> if i were a betting man i would say it would be next week. but they have to do it by the end of june. but it could be today, that's right. bill: usually, mondays or thursdays, right? that's why we're on standby now. >> yeah. bill: do you believe at the moment that the health care law stands or falls? >> i believe that the individual mandate will be struck down. i suspect they will uphold the ability of the federal government to require states to lower their requirements or eligibility requirements

for medicaid. and the big question will be severability. this bill did not what is called a severability clause where one part is unconstitutional the rest stands. whether it will stand whether it --. bill: if they take out the mandate in simple language how does that affect the rest of the law? >> it blows up most of the rest of the law. even the administration in its pleadings before the court acknowledged if the individual mandate were struck down most of the law would collapse. this thing doesn't work unless you require everybody to buy health insurance as a condition of being alive at the age of 25. without it even the administration said it would be an unworkable mess. bill: now on immigration, does arizona survive here or not? >> you know, again, going to be a close call. my suspicion it is going to survive. what is interesting to me, bill is, that remember the arizona law says that local law enforcement can inquire

about somebody's immigration status only after, first of all stopping them with probable cause for some other offense and then having a reasonable suspicion that they are not a u.s. citizen. and sort of sets standards for that. the administration argued in court this should be declared unconstitutional. yet the federal government standard, federal immigration officials are able to ask about immigration status based on their experience. that is to say, simply they have been a border patrol agent or federal law enforcement agent and they have a gut, a gut instock exchange for suspicion this person might be illegal. bill: the language is probable cause to believe. >> probable cause to believe but to the nor federal officials. federal officials can do it based on their experience. the federal government has a much less strict standard than arizona has inquiring about status yet the federal government has been arguing in court to toss out the arizona standard. bill: we're on standby for

both of those as i mentioned. shannon bream at the u.s. supreme court. it might be the day. i want to ask you about comments made yesterday by house minority leader nancy pelosi. she was asked about the contempt citation given to attorney general eric holder. she sad the following to reporters. i could have arrested karl rove on any given day. i'm not kidding. there is prison here in the capitol. if we spotted him in the capitol we could have arrested him. congress investigated you a number of times when you were serving under president bush, especially around the federal judge probe that caused president bush to invoke executive privilege himself. what do you say -- >> u.s. attorneys. bill: attorneys, yes. eight or nine of them at the type. what do you think about that comment, karl? >> she is absolutely way off base. in order for her to have quote, arrested me for deputy nancy to arrest me and thrown me in her one cell jail, the congress would have had to hold me in contempt. now in july of 2007 the

judiciary committee voted to recommend to the house that they hold me in contempt but deputy nancy never brought it up. we're still a nation of laws. until the congress holds somebody in contempt and that is uphold in a court of law she had no ability to arrest anybody. nice to know that she dreams of putting me in her little jail. sort of like barney fife getting her little one bullet and carrying around the big gun but we're still a nation of laws. we're not an authoritarian regime which people in positions of power like the former speaker of the house of representatives could have thrown me in jail. but i thought it was a sad, pathetic little laughable moment that she, i could have arrested him anytime i wanted. no kidding. no kidding. i could have. please, she had no ability to do that. she knows it. bill: what she said was that the executive, or, the contempt charge is strictly political. now what is your sense about what's coming out of the

white house when the president exerted executive privilege yesterday? >> yeah. you know, i believe, i do believe a president has a right to exercise executive privilege. what i worry about in this instance is the white house has previously said there were no connections between the "fast and furious" program at the justice department, alcohol, firearms and tobacco and dea, that the white house was not involved at all in it. so, you know, it is one thing to exert executive privilege over the actions of the president and his aides and the white house. it is another thing to exercise executive privilege with regard to a cabinet official, seemingly in a matter according to the president up till now had no connections with, no contact with, no commune kath with the white house. i'm a little concerned about it. i think it is overreach. bill: what do you mean concerned about it in what sense? >> well the president previously said the white house had nothing to

do with this and we doesn't know about it and now he is taking his privilege, that has, it is about his privilege at the white house and trying to extend it to a member of the cabinet. now either he had something to do with it or he didn't. he said he didn't. but the action of executive privilege tends to lead, create a suspicion that maybe he did because this is a very long reach. basically if the president is allowed to take the privilege goes to the executive office of the president and extend it to the cabinet department, he can extend it to any branch of government for any matter, even if it had no, even if there was no presidential or white house involvement and i'm not certain that is what founders and thought about when they talked about executive privilege. bill: the house is saying they will go forward with this contempt vote next week. >> right. bill: would you anticipate negotiations by the administration or department of justice to stop that, or are we past that? >> well, i would hope that both sides would try to find a way to avoid a

constitutional crisis but look, attorney general holder has told apparently chairman issa that the papers that he wants are embarrassing. they have turned 80,000 piece of paper over to the inspector general of the department of justice to investigate the matter but they have only turned over less than 8,000 to the congress which requested all 80,000. i would give him all 80,000, get through the embarassment. do not prowoke an unnecessarily constitutional crisis. bill: has to be a reason why they're not doing that. what is that answer? >> the president talked in 2007 about how when a president exerted privilege like this it tended to create the impression there was something shaky and untoward going on. senator obama was right about the actions of president obama. this just adds to the belief that they're trying to hide something. that there's a cover-up involved and the president extending his privilege to the attorney general makes it look like he is part of the cover-up. there is something that will embarass him. bill: if that theory is

right why not do it weeks ago, why not do it months ago, why yesterday? >> i have a theory on this. the president is happy to have a conversation about this rather than about the economy. remember today we have a new jobs number out, 387,000 americans filed first-time claims for unemployment. the president would much rather talk about a fight with the republicans in the house of representatives over something that is sort of hard for people to get attention to and to which the mainstream media has given no attention. over the last year, nbc devoted 10 seconds in their evening broadcast to a, to fast and furious which involves u.s. government giving over 2,000 weapons to mexican drug cartels in order to trace them. those weapons were used in the deaths of innocent mexicans and the death of a u.s. border patrol agent. and nbc has given 10 seconds to it. he would rather have this conversation then a failed economy, anemic recovery. lots of people out of jobs. affordable care act, big deficits, big spending. worries about the economy. he would rather have the

debate. it is distraction, absolutely. bill: with regard to the media that changed as of today. upper fold, "washington post." lower fold, "new york times". >> right. bill: karl, stand by in austin. if we get anything from the u.s. supreme court we'll bring you back on. thank you for your time today. >> hanging out. thank you, bill. patti ann: a new set of documents the white house is apparently trying to protect is known as the so-called kill list. the administration is now refusing media requests to turn over the papers related to the targeted killing program against suspected terrorists. officials say the information is highly classified and releasing it could harm national security even though some details have already been leaked. among those said to have been on the list is america american-born cleric, al-awlaki, killed in a u.s. drone strike in september. bill: 10 minutes past the hour. this on a thursday morning now. the deadly violence in syria is not stopping. now we learn there is the possibility you could be playing a part courtesy of the cia? we'll explain what that's

all about, patti ann. patti ann: the pictures have been impressive, now it is getting dangerous. how debris from last year's tsunami in japan could affect your bottom line, coming up. >> i think it's too early for us yet to say what volume we can really expect. i mean it's a big ocean to traverse. we also know that we're going to get some debris. >> if there is a significant amount of debris comes through a possibility we could lose a lot of your gear. we could lose time fishing. that is economic impact that would be pretty tough to bear. get it. now that's like sunblock before or sun burn cream later. oh, somebody out there's saying, now i get it! take beano before and there'll be no gas.

wouldn't it be nice if there was an easier, less-expensive option than using a traditionalawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology.

together, you get quality services on your terms with total customer support. legalzoom documents are accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so, go to legalzoom.com today and see for yourself. it's law that just makes sense.

bill: brand new polling numbers now show a neck-and-neck race for the oval office in november. president obama and governor romney in a virtual dead heat as opinions sour on the state of the economy. look at that number. according to the latest ap survey 47% favor the president. 44 favor the governor. this is as fewer americans

believe the economy is getting any better. a majority disapprove how the president is handling it. 3% is within the margin of error. watch it. it is close, patti ann? patti ann: governor romney is pitching himself to america's latino community today. he is set to speak at opening day of the nation's largest latino political convention. president obama is not far behind. his speech to the gathering is scheduled for tomorrow. steve centanni is live right now in washington. hi, steve. what do we expect to hear from romney today? >> reporter: patti ann he will certainly address immigration as he speaks before the influential group of latino act at this vistds in orlando. we don't know whether he will continue to criticize the president announcing a new policy of young immigrants brought here by their parents or will offer new details about his own position on immigration. he says the move was politically motivated. latino population in the u.s. grown 15 million over past decade, much of that in critical swing states.

romney so far refused to say whether he will repeal the president's decision. i don't know why president obama reveals stopgap measures are the way to go. he was president last 3 1/2 years and did nothing on immigration. president obama will speak before the same latino group tomorrow. patti ann. patti ann: what do we hear from florida senator marco rubio? >> reporter: he will address this conference in orlando today. he had a proposal very similar to the president's to deal with young immigrants. he is considered a possible romney running mate. here he is on fox with neil cavuto. >> this issue deserves, yes, these kids deserve compassion and this issue deserves responsible policy making which is when you sit down with stakeholders analyze all the implications what it means to make a move at time of high unemployment at a time schools are overcrowded. what does it mean? how do you balance concerns.

that is what i was working on not election year stunt. i think this election year stunt will have long term consequences on the ability here in washington to sit down on this issue and come together to look for a solution. it makes it harder. i hope i'm wrong but i think it does. >> reporter: rubio's own immigration bill was facing stiff opposition among members of his own party on capitol hill. patti ann, back to you. patti ann: steve centanni live in washington, thank you. bill: another fox news alert right now. there is new evidence released in the trayvon martin shooting matter. a new video shows neighborhood watch volunteer george zimmerman at the scene of that shooting giving his version of what happened the night he shot the 17-year-old teenager. phil keating is live on this out of orlando today. what happened here, phil? >> reporter: well, this is a huge data dump now released by george zimmerman's attorney, detailing the statements on audio that george zimmerman told an investigators as well as some key pieces of video

which we have all been waiting for in the weeks heating up to next friday's new bond hearing for george zimmerman. all of this evidence coming in from the dates february 26th, the night trayvon martin was shot and killed as well as the following day when he went out, zimmerman, with cops to the scene of that gated community to reenact things. as he has all along, zimmerman tells the cops that basically he was ambushed by trayvon martin, punched, knocked to the ground. had his head slammed on concrete. he claims trayvon martin saw his pistol. that is when zimmerman felt it was life and death. shoot or be shot. >> back there are you following him? i said yes because i was you know, in the area. we don't need you to do that. i said okay. so i, that's when i walked straight through here to get the address so i could meet the police officer. then they said, i said he is not here. do you still want him to come? i said yes. where do i want hill to come

to? you know what? tell him to meet me at my truck. next to the clubhouse. he goes straight in through the clubhouse and maybes a left. my silver honda was parked right there. i will meet him there. i'm walking back. >> reporter: trayvon martin's family and attorney all along called trayvon martin the absolute victim here. he was 17, unarmed. he was committing no crime. just walking through a neighborhood where he was fully entitled to. bill: there is also a development with the police chief in this case in sanford. what happened there, phil? >> reporter: sanford police chief bill lee finally was fired last night by the sanford city manager. bill lee released a short statement last night standing by his actions as police chief during the trayvon martin investigation when he chose not to charge him with a crime saying there wasn't enough evidence it contradict george zimmerman's self-defense claims. we also received last night the first 911 call made by

trayvon martin's father which of course was to report a missing person. here's tracy martin. >> want to file a missing person's report. because hasn't really been 24 hours. but, i'm from miami and my son's up here with me and he left, he doesn't, i'm in sanford. he doesn't know anybody up here and --. >> reporter: when trayvon martin was shot and killed that night, it was dark and it was raining and trayvon martin according to police had no identification on him. while they knew they had the 17-year-old black teenager dead, they didn't know his identity. so therefore his father had no idea, was not notified that his son was dead at that point. so that is the first call from an anxious parent just trying to locate his son. bill: phil keating in orlando. phil, thank you. patti ann. patti ann: president obama asserting executive

privilege, locking away documents related to the disasterous "fast and furious" gun-running sting. congressman trey gowdy is on the house judiciary committee and he says that move may not even be legal. he will join us live. stay with us. ♪

why not make lunch more than just lunch?

with two times the points on dining in restaurants, you may find yourself asking why not, a lot. chase sapphire preferred.

bill: it was not a decision we were anticipating but one has come down that could have a direct impact on unions in america. handed down by the u.s. supreme court. bret baier, host of "special report" with me now out of washington. what was the ruling, bret and what was the case? good morning. >> good moing bill. we're waiting to see if health care comes out and immigration. this is a big case. it is a blow to unions. the vote, 7-2 against the seiu, service employees international union. this case is a california case called knox versus

seiu. essentially a decision whether unions any union, seiu or any union can issue temporary hikes to union dues to pay for political advocacy without first giving employees formnal notice they can object. with a 7-2 ruling here, this is going against. seiu, against the unions and essentially saying a union must give members a chance to object to the political advocacy. why is this important? in a political campaign year this does happen, temporary raises to dues to pay for political ads. we've seen it all over the country. after the wisconsin recall vote, scott walker winning that in wisconsin, also a blow to junes overall, -- unions overall, this is another blow to unions that wanted to, seiu wanted to raise dues for specific political advocacy, political ads, that perhaps members had a problem with. know the supreme court says they have to be able to

object to the temporary raise. and it's a significant ruling as we wait for the big rulings of health care and immigration. bill: let me back up a little bit on the case. came out of call important, right? >> right. bill: the u.s. 9th circuit court of appeals out of san francisco it ruled the union was giving sufficient notice. that argument was kicked to the curb. in 7-2 vote that is overwhelming. >> it is overwhelming. justice kagan and justice buyer dissented but the rest of the court voting with the plaintiff here, knox, diane knox, who, and other nonmembers of seiu local 1,000 wanted to opt out because they didn't agree with the messaging that seiu was using and the fee that they were going to raise to pay for that messaging. around the court overwhelmingly siding with her. bill: now, bret, i do have breaking news on news that is not breaking. are you ready? >> okay. bill: there will be no decision today on health care and there will be no

decision today on immigration. so -- >> there you go. bill: we officially go back into our cave and wait to what, next monday? >> monday will be the next --. bill: or thursday? >> monday is the going bet. it is the official end of the term but likely will be extended beyond that but monday look to see some cases. remember there are a number of different cases. not only this seiu case. there is also a case about military medals, whether it is a federal law to lie about, having military medals awarded. there's a couple of other cases that are interesting but obviously health care, the big one, and immigration in arizona we'll wait for them. bill: not every day when you get to do a little bit of breaking news on the news that is not breaking. >> that's right. but we do it all. bill: right on. see you at 6:00. thank you, bret. >> see you. bill: patti ann. patti ann: stopping the massacre in syria, now the cia is getting involved. we'll have details of a secret alliance ahead in a live report. bill: there are legal questions about the white house move to protect attorney general eric holder

by invoking executive privilege and a lot of questions today. trey gowdy son the house judiciary committee. he says that move may not even be legal. it is he right? he is live after the break. >> if congress has time to look into major league baseball and bcs and invite stephen colbert to come to a committee hearing, surely we have time to get answers on a fundamentally flawed, lethal investigation like "fast and furious." it's time to live wider awake. only the beautyrest recharge sleep system combines the comfort of aircool memory foam layered on top of beautyrest pocketed coils to promote proper sleeping posture all night long. the revolutionary recharge sleep system... from beautyrest. it's you, fully charged.

bill: 10:30 on the east coast. new fallout from the white house decision to lockup documents related to fast and furious. top republicans in the house saying it was a calculated move by the obama administration to cover eric holder's back. and you ultimately time mekong. here is the chairman of the oversight committee darrell issa talking to greta about that last night. >> this is an 11th hour opportunity. taking that it's serious he's seriously trying to create an executive privilege that either doesn't exist or is loosely held. most of the documents that we've asked for clearly are within the justice department, they are not between the president. bill: my next guest probably doesn't disagree with that, south carolina congressman trey gowdy, and the oversight

committee. eric holder delivered comments, he called the actions by the committee unwarranted, unnecessary, and unprecedented. what do you say to that? >> well, good morning, first. its hardly unprecedented. he need look no further back than the bush administration to see contempt of congress being threatened and exercised on a fairly routine basis. it's -lt also not unwarranted, we asked for the documents in june of 2011. we are in june of 2012. i can't answer your questions about fast and furious. who knew about it, who sent a letter to chuck grassley. i don't know much more about it than in 211. if he wanted to comply with the subpoena he should have returned the documents when they were due. the other thing i find vexing

said the president knew nothing about fast and furious, he knew nothing about it, he didn't approve it. how can he assert executive privilege over something he knew nothing about? if that i his version of executive privilege is abg receipaccurate we won't be able too get any documents on anything. bill: he wants to resolve this and he says it can be resolved on the proposal offered earlier this week. is that a possibility? >> bill, you wouldn't think very highly of us if we accepted his extraordinary accommodation or proposal or whatever you've nice eupl he is going to use today. he proposed to chairman issa, give a verbal briefing, no documents, and you take contempt of congress after the table. it's been a little over a year and a half since i negotiated in criminal cases, that is not a very good negotiation from the state's standpoint.

we give up our right to prosecute you or go forward with contempt of congress, you don't give us the documents. that was a nonstarter. i don't know what is in these documents that he doesn't want to show us. i don't know. bill: there is going to be a contempt vote that we expect from the full house of the floor. what is your thinking as to why executive privilege was exerted yesterday? >> there is something in those documents that the department of justice, or the white house doesn't want us to have, and i cannot imagine -- i honestly, bill, do not think the president of the united states knew about fast and furious before brian terry's death. i'm not sure he knew about it very quickly after brian terry's death any more than george bush knew about wide receivers. i don't know who they are protecting or what. it could be lanny brewer. bill: why would you suggest lanny brewer. >> his fingerprints are all over fast and furious and gun walking. a letter was sent to chuck

grassley that was demonstrably false and later withdrawn. do you know where lanny brewer was? he was in mexico advocating for the tac tactic of gun walking. you cannot deny the tactic and be advocating for it on exactly the same day, that's where lanny brewer was. bill: what was his title. >> the criminal chief for the department of justice. it does not get any higher than that. he's the criminal boss. bill: karl rove says this is a distraction. his theory is that they want to distract the american people away from the issues of the economy. >> i think people know the economy is bad, they want government to be accountable. i don't think you have to choose between the two. bill: there is a vote next week in the floor of the house.

>> yes, sir. bill: you could probably bet right now that republicans will vote for it, democrats will vote against it, same as the committee did yesterday up and down party lines. >> you know, bill, i think there are some democrats, i know there are because i've had private conversations with hem who are every bit as concerned about this as we are. the pressure to vote the party line is tremendous, particularly when your president is the one who is on the hook so to speak, or your attorney general. what happens after that depends on what kind of contempt of congress the speaker pursues. it could be criminal, civil, plenary. bill: you're saying you'll get democrats to vote for your -- >> we're going to try. congressman chaffittz have had cordial talks with congressmen on the other side of the aisle. here is the other thing, bill, if this were a republican attorney general he still needs to give us the documents. this is not about politics to me. if congress cannot stand up for

its rights to provide oversight when you have a dead border patrol agent, when are we ever going to do it? bill: trey gowdy a republican congressman out of south carolina. sir, thank you we will follow the headlines next week when they come. have a good weekend. >> thank you for your time. patti ann: the cia may be helping syrian rebels fight their oppressive government. sources tell fox that turkey reached out to the american intelligence agency asking for assistance in gathering intelligence on which opposition groups to supply with weapons. catherine herridge is live in washington with more details on this. what are we learning this morning? >> reporter: a source familiar with the situation on the ground tells fox turkish authorities reached out to the cia for assistance. it wants to expand its intelligence network inside syria and the move has gained momentum as conditions have deteriorated.

turkey's strategic importance is clear from the math. the help has included money and technology and coordination on the ground and surveillance equipment. it's possible the equipment do be used to help document atrocities for future prosecutions. this is the most recent video from syria. fox news was told that the primary goal was to help turkey expand its intelligence capabilities which the u.s. would theoretically benefit from and a secondary goal is to prevent weapons from falling into hands of other groups. this morning the cia had no comment on the reporting. patti ann: is this a shift in the obama policy? >> reporter: the administration wants to pressure russia to use its leverage to blunt the fighting in ear yeah. syria was accused of providing

refurbished helicopters to the bashar al-assad regime. >> similarly we'd like to see arm sales to the bashar al-assad regime come to an end. we believe that they've demonstrated they will only use their military against their own civilian population. >> reporter: one analyst said there is an inherent risk for the united states, building up a relationship with turkey could affect a reasian ship with the kurds and that brings with its it's own intelligence gathering capabilities. patti ann: thank you. bill: another decision by the u.s. supreme court, nothing to do with healthcare or immigration, yet again we will not get those rulings today. however, another decision just handed down hits close to home at the fox news channel. foxtel vicious also owned by news corp. the parent company of the fox news channel apparently has prevailed in a challenge with the fcc suggesting the court does that the fcc was out of line when it fined foxtel

vicious and other media outlets based on curse words and in the decision it suggests that the standards were considered vague, that is a quote from the supreme court going out a few moments ago. a few decisions so far today. not the big ones that we thought, though. maybe monday. a senior citizen takes a job as a bus monitor for extra money. she did not expect this. >> you're fat. you're so fat, you take up like the whole seat. >> oh, my god -- bleep ] bill: are there criminal charges to be brought against middle school students? we will hold court with our own panel on this in moments. with sy and delicious? you're a talking bee... honey nut cheerios has whole grain oats that can help lower cholesterol. and it tastes good? sure does! right... ♪ wow.

delicious, right? yeah. it's the honey, it makes it taste so... ♪ well, would you look at the time... what's the rush? be happy. be healthy.

patti ann: a massive outpouring of money and support for a school bus monitor who was bullied by a pack of middle school students.

>> [inaudible] >> if you have nothing nice to say, don't say anything at all. >> [inaudible] >> why is there water on your foist. >> i'm crying. patti ann: karen kline is a 68 grandmother who supervised the yellow bus in upstate new york. she was verbally abused for ten straight minutes and it was caught on tape. there are violent threats on the tape as well as possible sexual harassment, so police are investigating. >> i just restrained myself and i tried to pretend that they weren't doing this. i've escaped a lot in my life in trying to let things go, you know. patti ann: joining us now to talk about this we have arthur ey aidala, a former prosecutor

and fox news contributor. and pamela turner. patti ann: there is horrible name-calling going on and specific and grave i can threats made as well. are the threats at least criminal? >> obviously it's harassment. if that is not a textbook example of harassment i don't know what is. looking at this and having handled these types types of cases, the real problem is with the schools, the schools and the school chancellors, whoever is in charge they don't give the matrons or the bus drivers any authority to discipline these kids. if that woman would have got even in trouble if she stood up and said, hey, if you don't shut up and straighten yourself out, whatever, something she is going to do. she is not allowed to do anything. she has to sit there and take the abuse, which is nuts, and that's us as a society just falling down on the job. patti ann: tamara in addition to the possibility of criminal charges what about civil charges? she was on the job, she was

working for the school district, presumably some of that money for the bus is coming from taxpayers' dollars. what about sexual harassment, what about general harassment or hostile work environment, et cetera? >> well, sure, because this is not the first time that it's apparently happened. apparently there are a couple of other videos of these kids harassing this school bus driver, or, you know, adviser, whatever her position is. but the thing is, is did the school actually know about this behavior beforehand, or should they have known? did they know these kids were bullies? and to arthur's point about the schools allowing this to go on what, about the parents here? do the parents also know that their children are engaging in this type of behavior? that could lead toward a civil aspect of this case. but definitely i do not think that there are criminal charges here, because to be convicted of an assault you have to fear that there is an actual battery that is going to occur to you.

>> what about harassment, harassment in the state of new york where this is means you cause someone annoyance, you cause them alarm, you do something repeatedly, and -- >> an patti ann: and there are threats, i'm going to come to your house, i'm going to beat you. >> what is your address? i'm going to stab a knife in your belly. >> right, right, right, that's what they are looking into. that is not just the first tapes, apparently there are other tapes that the police are looking into. the school has an obligation to also step in and punish the children. >> i agree. patti ann: i want to get to the school's statement right now. they say, quote at this point all of the students have been identified, they are considered skwhrufpbls under new york state penal law, once the investigation is complete a decision will be made on possible family court charges. the current police investigation is in addition to any punishment delivered by the school district. and arthur, back to tamara's point, it's only liable if the school knew, and this woman did

say she was interviewed by someone else afterwards, that she never did report this behavior to the school, because she said well in the past other people have reported things and nothing was ever done. if she didn't complain is the case over? >> well, the legal case. there is a notice requirement. so the school has to be on notice that something is wrong, and if they are not they can't be held liable. but there is a much bigger point to this whole thing and it has nothing to do with the law. it has to do with values. and tamara brought up the fact about parents being involved, they should be involved. but the school has to get a little heavy handed and stop worrying about the kids' feelings. obviously the kids didn't worry about the woman's feelings. those were some of the meaness things coming out of a teenagers mouth, they will get a time out and they won't be able to play

with their little machines. it's ridiculous. >> the bigger epidemic is we're looking at bullying becoming a problem across facebook, myspace.com. we are attacking teachers. its the responsible of state legislate yourself to put these laws on the books and make these kids accountable. patti ann: tamara holder, arthur eye cal aidala, thank you so much. there is a fund where they have collected over a hundred thousand dollars. she can maybe take a nice vacation. other kids are sticking up for the bus monitor saying listen, we don't want you to think all kids are bad, we are horrified by that. bill: this continues to grow, check that out. >> i want to make sure it's still there in the morning. >> what if it's not? >> i'll worry about that in the morning. fore! no matter what small business you are in,

managing expenses seems to... get in the way. not anymore. ink, the small business card from chase introduces jot an on-the-go expense app made exclusively for ink customers. custom categorize your expenses anywhere. save time and get back to what you love. the latest innovation. only for ink customers. learn more at chase.com/ink a little bird told me about a band... ♪ an old man shared some fish stories... ♪ oooh, my turn. ♪ she was in paris, but we talked for hours... everyone else buzzed about the band. there's a wireless mind inside all of us. so, where to next? ♪

[ male announcer ] for our families... our neighbors... and our communities... america's beverage companies have created a wide range of new choices. developing smaller portion sizes and more low- & no-calorie beverages... adding clear calorie labels so you know exactly what you're choosing... and in schools, replacing full-calorie soft drinks with lower-calorie options. with more choices and fewer calories, america's beverage companies are delivering.

bill: now to the first installment of fox news people speak. for homeowners in colorado there is a new initiative that may help some americans stay in their homes. douglas kennedy has more live from our newsroom here. what did you find out? >> reporter: it's good news for homeowners, but bad news for some banks, who claim it's also bad news for the colorado economy. in 2010 cheryl hoffman faced the nightmare of foreclosure. the problem was a lender trying to kick her out of her family home was not the lender she signed her mortgage agreement with. you discovered your mortgage had been bought and sold so many times it was difficult to tell who actually owned your home? >> that's right. it's unclear who the lender was when they foreclosed, and it's

unclear today. >> reporter: in fact her four bedroom santa fe ranch here in golden, colorado sat empty for months, and not because there weren't any buyers. she said her multiple lenders were fighting over ownership and thus couldn't transfer time. if the ownership was unclear how did they force foreclosure on you? >> that is the purpose of this ballot initiative. >> reporter: the ballot initiative hoffman now supports will require all lenders in colorado to prove they own the property before they can for close. critics call it unnecessary and say it will hurt responsible homeowners. >> they are going to end up with increased costs as a result of this. >> reporter: don childers heads the colorado bankers association which vehemently opposes the measure. >> the proposal basically adds a lot of needless red tape that drives up the costs for any lender, and that gets reflected in future interest rates and fees. >> reporter: the colorado

bankers association says this measure will basically create more costs that will eventually be passed onto all home buyers. what do you say to that? >> i think that people's property rights are fundamental to investing in a home or any other property in colorado. >> reporter: she says without the right to clear title property ownership becomes worth less. that's it from here, bill, back to you. bill: we will see where that goes. thank you. patti ann: you'll love this story, a find like no other. a mom discovers more bling than she bargained for, a shiny surprise came right out of a pocket. ♪ diamonds are a girl's best friend. ♪ ♪

chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save.

bill: meet the giant sinkhole

that swallowed a house. it has an opening as big as a two-car garage. neighbors say the sinkhole grew until after the house was gone. >> you just look over there and the whole back end of the house just slipped right down into the hole. >> she cried, it's her house. she just walked in and saw it. i feel sorrow for her. bill: she was having her homie valuatehome evaluate ford sinkholes when the ground gave way. patti ann: one man's trash is another man's treasure for a women in minnesota that was definite hraoet case. she found a diamond ring in the pocket of a pair of used pants while shopping at good will. the woman is determined to find the owner, the ring is report $6,500. she is not going to keep it if she can find the rightful owner. bill: dig deep before you chuck all the old stuff. patti ann: look at those pockets. bill: good to be with you. have a terrific day. "happening now" starts rig