needs the money and says acts could just donate to a host city charity. all great ideas. thanks so much for writing today. and thanks are being part of "the real story" on a very busy news day. i'm gretchen carlson. there's more with shepard smith. first, the killing of an american reporter, james foley. militants cut off his head on camera. now we're hearing from his parents and the president. >> he was strong, courageous, loving to the end. we just hardly recognized our little boy. he was just a hero. >> jim was taken from us in an act of violence that shocked the conscience of the entire world. >> so now what? this hour we'll talk with a journalist from reporters without borders who knew foley well. plus, attorney general holder arriving in ferguson, missouri, as a grand jury starts to decide whether to indict the officer who shot michael brown. and we wait to see whether calm returns to the streets tonight. let's get to it.

now "shepard smith reporting" live from the fox news deck. >> good wednesday afternoon to you. first from the fox news deck at 3:00 in new york, the parents of the murdered american journalist james foley say he was a hero and that he represented the goodness of america. the mother and father spoke just a short time ago. >> we're very proud of jim. you know, he was a courageous, fearless journalist, very compassionate american. i mean, the best of america. and he always hoped that this -- he would come home. that was his hope. >> jim foley's parents also say their son would never want them to be bitter or hate anybody. they say he dedicated his life to exposing the suffering of people all around the world. >> you know from the videos that his last words were -- i wish i could see my family.

>> as the parents were speaking, just before, at least, president obama delivered a statement on jim foley's beheading. the president said he spoke to the mother and father, and no just god would stand for the killing. the president also called for a common effort to, quote, extract this cancer of the islamic state and stop it from spreading. >> the united states of america will continue to do what we must do to protect our people. we will be vigilant, and we will be relentless. when people harm americans anywhere, we do what's necessary to see that justice is done, and we act against isil standing alongside others. >> u.s. intelligence officials confirm that a video appearing to show an islamic state militant beheading jim foley is indeed authentic. we will show you only still images from that video. an intelligence source tells fox news that the experts are analyzing the landscape in the video in an effort to determine

where the beheading took place. the militants claim the killing was in retaliation for recent u.s. air strikes against islamic state militants in iraq. jim foley was a freelance journalist. u.s. officials say somebody kidnapped him in 2012 on thanksgiving day as he was covering the crisis in syria. catherine herridge from washington. what else are we learning, if anything, from this video? >> intelligence value of the video goes far beyond the identification of the two american journalists. investigators at this hour are drilling down on the identity of the executioner and whether he's a known jihadist to the fbi. a short time ago the state department providing new details. >> from what we've seen, it looks increasingly likely that it is a british citizen. we agree, of course, with that assessment, are working very closely with the uk, our partners there to determine who may have been in the video. >> jihadists with isis recently began reposting images on the web of another american who was

beheaded by al qaeda in iraq a decade ago. based on this message traffic and other data, the u.s. intelligence community was aware of direct threats to foley. as one source described it to fox, isis said they would do it, and they did it, and they posted the video as their evidence, shep. >> catherine, anything new on the islamic state terrorists and their goals? >> well, the video with its horrifying simplicity carries multiple messages about isis and its objectives. when you look at that video, you see the orange jumpsuits worn by both foley and sotloff, and they are synonymous in jihadi propaganda with guantanamo bay and the first wave of prisoners held at camp x-ray even though the orange jumpsuits have not been used in more than a decade. the fact that they were held together also shows a level of sophistication and coordination. >> holding hostages across two war zones is very complicated. they have a lot of enemies in both countries that they have to keep these hostages sheltered

from in order to maintain control of them. and at the same time, they have to plan out what they're going to do with them in terms of accomplishing their goals. >> well, al qaeda groups have relied on kidnapping and ransom for cash or prisoner swaps like sergeant bowe bergdahl, they say this is very different because it does not need the cash to fund its operations. so the kidnapping and ultimate murder of foley is used as an escalation of the crisis, shep. >> catherine, as you know, jim foley was not the only american journalist whose killers hauled in front of the camera for their video. as you mentioned, they also showed the second american identifying him as journalist steven sotloff whom they kidnapped a year ago. steven sotloff reported for a number of media outlets including "time" magazine. in the video the militants threatened to kill him next. he's one of 19 reporters who disappeared while covering the conflict in syria.

we know of two who are american. sotloff and austin pice. our chief correspondent jonathan hunt spoke with his family. what do we know about where he may be? >> precious little, shep. you know, austin tice is actually the longest held american captive, kidnapped outside damascus on august 14th, 2012. and in the intervening two years, his parents tell us they have heard absolutely nothing from him and next to nothing about him despite their best efforts, and they say the best efforts of u.s. officials. listen here. >> the, you know, overriding issue is that the situation is so complex and the diplomatic means so difficult because of various relationships, there's -- there doesn't appear to be a lot of opportunity or leverage that certainly our government has. but we do believe they're

applying all the efforts that they can. >> two years, shep, in which they have not heard a word from a son who despite being in a war zone used to contact his mom pretty much every day. however he could. e-mail, phone, twitter, something, but nothing for two years. >> so calm in that video there. how are mr. and mrs. tice doing? >> it's being really tough, and it's only obviously got a lot tougher since we all became aware of the video showing the execution of james foley. this was a very close family. they have been gracious throughout our interview took place a couple of days before we heard aboutxecution style murder of james foley. and i asked mr. tice at the time what he would say to his son's captors. listen here. >> my message would be that austin is a good man. he was in syria for honorable purposes. >> now, last week was not only the second anniversary of austin tice's disappearance. it also marked his 33rd

birthday. the family had a birthday celebration complete with cake. they blew out the candles on his behalf. and at the end of our interview, his mom wanted to deliver a message direct to her son. listen here. >> jim, please know th-- austine know that we love and miss you more than words can say. god willing, you will be back to blow out the candles when you turn 34. >> indeed, we all hope that austin tice will be back to blow out his own birthday candles when he turns 34 and that all those, obviously, held in syria right now get a taste of freedom soon, shep. >> jonathan hunt, thanks. the head of the group reporters without borders says jim foley's execution really pushes the brutal treatment of hostages to the extreme. clearly it does. in a statement he writes, and i quote, foley did not work for the u.s. government. he was an experienced

international reporter whose sole interest was to report the news, not represent his nation. delfine is the u.s. director for reporters without borders. tell us about him. >> i think remembering jim is his kindness. he was an extremely kind and generous person before being actually a very experienced and dedicated journalist. actually, he started his career as a teacher. and then when i met him, i met him in 2012 when he just came back from where he had been kidnapped already. and i met him because he helped reporters without borders to raise funds for a photographer who was killed. i was really lucky to meet jim and to be able to be in contact with him. and we stayed in touch when he

decided to go to syria. he knew the risk he was taking. but as i said, he was really dedicated and passionate about people. and he really felt that he had to go there to tell the story and to share the suffering of the syrian people. >> delphine, our colleagues around the world seem to be in more danger than ever before. i wonder how much cooperation reporters without borders is getting from the government and others. >> in this kind of a case, we need cooperation from governments but also from nonstate organizations like human rights organization. we're work iing with the syrian people themselves, and that's why i think it's really important to show the syrian people that journalists are civilians. they are not representing their government. they are civilians who went to syria to report about what is happening in syria. they are here in a sense for the

syrian people, and we have to respect their work. i just want to highlight, as you say, that right now there are eight foreign journalists who are held hostage or missing in syria, and today i'm really thinking of them and of their families. we don't have to forget them, and we will continue to fight for them until they are back home safe. >> well, thank you and reporters without borders for all the great work you do for us and our colleagues around the world. again, thank you. >> thank you. well, a grand jury getting -- is meeting now in missouri. it started. prosecutors say it could take months for the panel to decide whether to indict officer darren wilson for the killing of 18-year-old michael brown. already we're seeing protests outside the court. we'll take you live to ferguson, missouri, coming up. this is fox news channel. and asked for less.

there's a reason it's called an "all you can eat" buffet... and not a "have just a little" buffet. because what we all really want is more. that's why verizon is giving you even more. now, for a limited time, get more data! 1 gb of bonus data every month with every new smartphone or upgrade. our best ever pricing with the more everything plan and 50% off all new smartphones. like the htc one m8 for windows or android. built to inspire envy. come get your more with verizon. [ male announcer ] when you see everyone in america almost every day, you notice a few things. like the fact that you're pretty attached to these. ok, really attached. and that's alright. because we'll text you when your package is on the way.

we're even expanding sunday package delivery. yes, sunday. at the u.s. postal service, our priority is...was... and always will be...you.

dunk,eady to crack, our priority is...was... dip... it's crabfest at red lobster! the year's largest variety of crab! like new! crab lover's trio! or try new! jumbo lump crab over wood-grilled salmon. crabfest is now... but ends soon! so hurry in and sea food differently! wouldn't it be great if hiring plumbers, shopping online is as easy as it gets. carpenters and even piano tuners were just as simple? thanks to angie's list, now it is. start shopping online from a list of top-rated providers. visit angieslist.com today. prosecutors in ferguson, missouri, today presenting grand jury -- presenting evidence to a grand jury will decide whether to criminally charge the officer who shot and killed an unarmed black man. that's as the nation's top prosecutor, eric holder, is now on the ground in ferguson, missouri, where his justice department is conducting a federal investigation of its own. a group of protesters demonstrated in a nearby suburb

where the grand jury is set to meet. but ferguson has been the scene of daily protests since the shooting, as you know. while a white police officer killed 18-year-old michael brown who was black. the grand jury will have to sort through all of the different accounts from police and eyewitnesses. some people on the scene say brown reached into the officer's patrol car and punched him. others who were there say the officer grabbed brown and that the teen ran away when the officer fired his gun. they claim the cop got out of the car and shot michael brown while he had his hands in the air. still other witnesses claim michael brown was charging the officer when he shot the -- when he fired the deadly shots. attorney general holder vowed a thorough investigation will take place. while also calling for an end to the violence that has erupted during demonstrations. and last night, missouri governor jay nixon weighed in and called for a vigorous prosecution and justice for the brown family. today the governor's office is

telling us those comments were not a prejudgment of the case. how could they not be? not once but four times within one recorded statement which was written and prepared for him, he said "justice for the brown family." never a single mention of justice for anyone else. much more on that in the legal analysis ahead. first, last night was much calmer on the streets of fergus ferguson. most protesters did stay peaceful. still police say they made 47 arrests in the late-night hours with some demonstrators tossing bottles at the cops. the crowds last night not as bad when we went off the air. did that change? >> reporter: shepard, they almost made it through an entire night with no violence. just after midnight, there were some problems. some of the protesters threw bottles at police. some of those bottles plastic

water bottles. others glass. some of those bottles reportedly containing urine. that's why two hazmat showers were set up near the command center. once the bottles were thrown, the police moved in pretty quickly. they responded with pepper spray as well as canines threw some of the protesters to the ground, zip-tied them and arrested them. three guns were confiscated but no shots fired last night. almost a violence-free night, shepard. >> what do we know about timing on the grand jury there, steve? >> reporter: prosecutors are saying it could take several weeks. they're talking about a possible mid-october date for all the evidence to be presented. so it could be quite a while. outside the courthouse today, there were about 50 protesters despite calls for community activists for a major rally there. where we are now, the scene of most of the protests so far, we're counting just about a dozen protesters. we could have seen, as the police captain said last night, a possible turning point in numbers of protesters here in ferguson, shepard.

>> pete harrigan on the ground. he'll be there for us night on special coverage on fox news channel, 11:00 eastern/8:00 p.m. pacific. up next, we'll hear the missouri governor's comments. comments napolitano calls rude. now an aide has attempted to clarify his comments, but the video remains. can they have it both ways? that's next. woooo. i know what you're thinking. you're thinking beneful. [announcer]and why wouldn't he be? beneful has wholesome grains,real beef,even accents of spinach,carrots and peas. it has carbohydrates for energy and protein for those serious muscles. [guy] aarrrrr! [announcer]even accents of vitamin-rich veggies. [guy] so happy! you love it so much. yes you do! but it's good for you,too.

[announcer] healthful. flavorful. beneful. from purina.

remind me to tell her happy anniversary. [ cortana ] next time you talk to caroline, i'll remind you. [ siri ] oh no, i cannot do that. oh, and remind me to get roses when i'm near any flower shop. sure thing. remind you when you get to flower shop. i can't do that either. cortana, it's gonna be a great night. [ beep ] oh wow! thanks for the traffic alert. i better get going. now that is a smart phone. ♪ oh, wait ♪ it's 'cause you make me smile ♪

the governor of missouri surprised many legal analysts last night with a prepared video statement in which he appeared to take sides in the case hours before a grand jury was to meet. today nothing new from governor jay nixon himself, but his office appears to be backtracking.

and his press secretary did with me on the phone last night. first we'll show you the governor's comments, or some of them. look. >> a vigorous prosecution must be pursued. the st. louis county prosecutor and the attorney general of the united states each have a job to do. their obligation to achieve justice in the shooting death of michael brown must be carried out thoroughly, promptly and correctly. >> of course, we ran the wrong sound. not once but four times the governor of state of missouri, though we can't manage to get it to screen, four times he said "there must be justice for the brown family." and as he said, there must be a vigorous prosecution. today, though, the governor's office sent out a statement that, quote, the governor's comments yesterday were not intended to pre -- were not intended to indicate pre-judgment in this matter. the governor used the term "prosecution" to refer to all duties and responsibilities of

the prosecuting attorney including the federal prosecution discretion, whether and what evidence to be presented to the grand jury, the filing of criminal charges, if supported by the evidence, representing the state if charges are brought and ultimately ensuring that justice is served. they want it both ways, ladies and gentlemen. joining us now on the fox news deck, former prosecutor anna marie mccevoy. to those of you in the booth, megyn kelly ran this statement. they're from megyn's midnight show last night. i want our viewers to hear them because i know what they're doing. it's not for me to judge, but i can tell you what the facts are. they've put the governor out, and the governor has said four times, "justice for the brown family." a very popular thing to hear these days in the state of missouri. he also said there must be a vigorous prosecution -- not investigation -- he said a

vigorous prosecution. and then his press secretary came on the phone and said, well, what he meant was -- but he didn't redo the statement, and the press secretary said to me, and i quote, there is nothing to retract. we stand by the statement. so you have two things here. you have the governor saying to the voting public, vigorous prosecution, justice for the family. and you have them behind the scenes saying don't classify that as us taking sides, which is exactly what they did. >> i was stunned when i heard him say vigorous prosecution. you know, at this point, we don't know if there will be a prosecution. and he really should have used the term "investigation." there's a big difference between an investigation and a prosecution. >> but he knows that. >> absolutely. >> how long has he been a lawyer? 30 years. >> that's right. >> lawyers know the importance of words. lawyers, above all other people in the world, know the difference between investigation and prosecution. they don't make this mistake. they certainly don't make it in a statement that they put out where he's reading a

teleprompter, a prepared statement. this was, it is hard to imagine that this was not intentional, and for political purposes. and it could cause severe problems in this investigation because of it because you have a grand jury that's now sitting. they may have heard this. and basically, he's saying there should be a prosecution. now, the grand jury at this point is supposed to decide whether a prosecution is necessary. that's not prosecutorial discretion at this point. at this point, the grand jury will make the decision as to whether to proceed or not. once they make that decision, after they make the decision that if there should be a prosecution, then prosecutorial discretion would come in to decide whether they really have enough to go to trial. >> do we have the sound yet? we're going to do this until we find that sound because it is the center of what we're talking about right now. here's the other the governor s really do anything about this prosecutor. there's a prosecutor in there. his father killed by a black man in 1964.

there were outcries from the community, he must be removed. the governor says i really can't get in the middle. the governor can absolutely get in the middle of this if he wants to. again, is this just politics? >> well, you know, it creates a bad precedent in a way, though, if he takes him out because then -- i mean, there are a lot of other cases that maybe, you know, that may have similar issues. you have murder cases and so on. just because his father was murdered doesn't mean it's going to impact any case involving these types of circumstances. but with so much press and so many issues, he certainly could, if he chose to, bring in a special prosecutor, or have it tried in a different area or so on, and he could make judgments like that. >> history tells us these things are very hard to "a," to get right, and "b," to have anything but those who are prezpodisposeo believe one thing, angry if their thing doesn't happen and vice versa.

>> it's very hard. that's why the best way is let the grand jury look at all of the evidence, let them look at all of the facts. let them go through the medical records for the officer as well as the autopsy reports and listen to the witnesses themselves, make judgments as to who they believe and who they don't. and then the grand jury will decide whether there's probable cause or not. it takes it off of the back of the prosecutor. it's not up to the prosecutor at this point. the grand jury says no. we think it's fine what the officer did here. we don't think there should be charges. then the grand jury has spoken. now, that doesn't mean that the feds can't bring charges if they find that their civil rights violations, other things that are can happen here yet. but at this point we're looking mostly at the state prosecution and what the grand jury will decide to do. and we just have to wait it out. it's going to take -- the prosecutor said, they think probably till the middle of october. >> the grand jury beginning to meet today. normally in secret, but we know -- >> it should be secret. >> it should have been. >> that's maybe why we haven't

gotten a lot of information. the reality is they're subpoenaing information, and this is done under the auspices of the grand jury. then the prosecutors should not be making that information public. >> but here now, i hope, is what the governor said last night. look. >> we have a responsibility to come together and do everything we can to achieve justice for this family. once we have achieved peace in ferguson and justice for the family of michael brown, so i ask that we continue to stand together as we work to achieve justice for michael brown. >> justice for the family of michael brown. justice for michael brown. it may turn out a jury of his peers may decide that michael brown's family needs justice, or it may decide that the police officer's story that michael brown came to his car, reached for his gun. the gun went off. michael brown went running, turned around and came charging at this police officer, and the police officer shot him because

he was being charged and feared for his life. that's called justifiable. i don't have any idea what happened. i wasn't within 1,000 miles of there. but neither does governor nixon. and whether governor nixon's office wants to try to take back or put the toothpaste back in the tube is one thing. it's governor nixon's job to do that, isn't it? governor nixon was invited on our program last night. he's invited here today. a card laid is a card played. and the card that governor nixon has played is justice for the family of michael brown. and you're telling me that a potential grand juror doesn't see that and say the governor just sides? >> and may say well, the governor is telling us we should be coming forward with an indictment. this is an appropriate case to indict the officer in. >> he says prosecute this. >> that's it. >> prosecute happens after an indictment is returned. >> that's right. >> if no indictment is returned, there is no prosecution. >> that's right. that's very clear. and the grand jurors know it. if they don't hear it

themselves, their family members may hear it. they mention it to them over dinner. this is not a sequestered jury. >> you're telling me the one-time attorney general, a 30-year lawyer, made a mistake not once but thrice about the meaning of justice for the family of michael brown? and not a word about this officer who, for today, is innocent of everything, who's sitting somewhere and is tweeting and telling his friends, i can't even leave the place. he's under 24-hour guard. it may well be he'll end up in prison. it also may well be he was trying to save his own life. and i'm positive of one thing, none of us knows. and that's what that jury is for and that grand jury is for. it's not for us and it is not for that governor. >> he shouldn't be doing anything to impact the decision of the grand jury. and certainly this potentially could. >> by the way, before they all start yelling at me about opinion, that ain't opinion. that's a fact. i don't know, you don't know, that governor doesn't know. >> that's right. hopefully the grand jury will make a good decision. they'll listen to all of the evidence. >> i hope so.

>> and make an informed decision without any sort of bias. that's what they're there to do. we just have to hope and pray that's what they do. >> anna marie, so good to see you. thank you. >> good to see you. fox news has confirmed the pentagon is now considering sending more troops to iraq. we'll speak with a former u.s. ambassador about the battle against the islamic state militants who just revealed, of course, of yesterday that they beheaded an american journalist. that's still to come from the fox news deck this wednesday afternoon.

first stop, illinois. hostages this morning including some children. the sheriff says it started yesterday afternoon, south of chicago when a suspect opened fire, wounded two officers and took eight hostages. both suspects are now under arrest. arizona. cars are still under water in the aftermath of the flash flooding yesterday north of phoenix. parts of i-17 and some state

highways are back open today. yesterday we watched rescuers pull some people from their homes. it's monsoon season. and forecasters say floodwaters build very quickly on the dry ground. and in new mexico, police say a teenager went to the hospital critical after a bolt of lightning hit him during a football practice yesterday south of albuquerque. school officials say he's now breathing on his own and that two other students and a coach were also hurt. much more from the fox news deck. "shepard smith reporting" continues right after this.

the state department has now requested additional security personnel, quote, in and around baghdad. in other words, more troops on the ground. that's the word from a senior u.s. official to fox news today. pentagon officials say they are, quote, seriously considering, unquote, sending fewer than 300 troops. but they have not made a decision yet, they tell us. the u.s. military is trying to help iraq and kurdish forces battle islamic state militants in iraq.

as we've reported here, u.s. officials have confirmed islamic state militants decapitated the american journalist jim foley and posted the video online. today president obama said the entire world is appalled. in that same video, militants threatened the life of another american journalist, steve sotloff. president obama says the united states will continue standing up to the islamic state. joining us now, ambassador adam morelli, a former state department spokesman and served as ambassador to bahrain. mr. ambassador, you want to do more. the president says we have to stand up. others have called for more to be done. there are limits to what we can do without congressional action, aren't there, and who makes these decisions? >> well, this is a very long war. and we should be clear about what's at stake. i think the brutal execution of mr. foley demonstrates two things. number one, it demonstrates what a lot of people have been saying

for a long time, which is that the islamic state represents a threat to the united states and represents a threat to u.s. interests. the islamic state has said they'll attack america and americans. now they've proved very graphically that they will do that. so that's number one. number two and i think more importantly, that, you know, if you're going to talk the talk, you'd better walk the walk. and until now, frankly, we haven't done much to contain the islamic state. let's remember they really got their momentum in syria where we haven't done much to aid the moderate opposition that was trying to deal with the islamic state before. and now they're well entrenched in eastern syria, western iraq. they've got lots of money, and they've got lots of arms. so what is it going to take to actually put meaning behind the words? it's going to take a significant commitment of resources and effort over a long period of time to roll these guys back.

i mean, i compare it to -- let's compare it to al qaeda when they attacked the twin towers. i mean, look. those guys were a couple of hundred in the mountains of afghanistan with very limited financing. and it took us how many years or how many billions of dollars and how many troops to really roll back al qaeda? isis and the islamic state is al qaeda on steroids. so we'd better be clear-eyed about what's going to be required to match our words with deeds. >> well, the congress said no to doing anything in syria. since the president has done things on his own over the last week, we've carried out, according to the pentagon, some ten strikes in the north of iraq. now our troop levels are up to 1100, 1200, if they send these 300 which you know they will. they wouldn't be seriously considering it if they weren't going to do it. and there's no end in sight to adding. the request he is who would you declare war on? where would you put troops? what is your risk in the rest of the region? and could you, at some point, be

accused of entering into a civil war that's raged for centuries? >> yeah, absolutely. i mean, it's a huge problem, shep. and that's why i say we need to be careful about letting our rhetoric run away with us. if you're serious about going after the islamic state, it's going to require a level of commitment and a level of diplomatic coordination with frankly allies who aren't that excited about working with us anymore. >> like who? who's not excited about working with us anymore? >> well, i mean, look. egypt, saudi arabia. >> we've promised the government of saudi arabia and for that matter bahrain some of the most repressive governments and dictatorships in all the world for years and years and years, and now saudi arabia is mad at us because this time we didn't do exactly what they said? saudi arabia is doing some of the funding of this, mr. ambassador, with great respect and you know it. >> yeah. no. i mean, look.

saudi arabia would tell you and with a certain amount of truth, i think, that the problem the islamic state is one of the united states's own making in the sense that saudi arabia urged u.s. action in syria a long time ago to prevent exactly what we're seeing today. >> and the u.s. congress said no. it's starting to feel like israel and palestinian territory. we could back this up to the united states going to war for reasons unknown in iraq if we wanted to. you can back this up as far as you want, but here's where we are today. and what do we do tomorrow? and how do we keep from inflaming things in that region? how do we keep from more american treasure and lives from being lost over there? we spent a trillion-plus dollars training the iraqi forces and giving them all of our weapons, weapons which are now in the hands of the islamic state. they wouldn't have those weapons if we hadn't given them to the iraqis who gave them to them. the cycle is -- it's mind boggling. >> yeah. and the genie is out of the bottle, sir.

is really is. and putting the genie back in the bottle is, as i said, a mind-numbing task. >> well, what i don't hear is real concrete -- people who believe we must do more. we must go in. we must put in troops. we must spend more money. we must get into the middle of this. they don't ever seem to have an example of specifically what we should do and even maybe more importantly, once we do it, how to get the hell out of there because something we've never learned how to do, how to get out of somewhere. >> well, i think the lesson for the experience that people point to as an example of success is when we rolled back al qaeda in iraq. i mean, you'll remember in 2006 and 2007, the level of violence in iraq was at its zenith, and the iraqi state was threatening to descend into civil war because of the gains that al qaeda in iraq had realized. and what turned the tide, frankly, was our ability -- and

again, with our arab friends -- to split the sunni community and to get the sunni population of iraq to fight al qaeda. >> we did that by paying, though. >> sure, it cost money. >> do we pay them again? is that the way to do it this time? because we had the iraqi army, we had the iraqis stand up. they stood up and then in come a few hundred people without any weapons basically, and they fold and they gave them the weapons that we gave them. it's like what do you do? >> yeah. well, what happened was, frankly, i mean, the sunnis were with us, and then what happened? maliki came to power for a second time in 2010. and then went after the sunnis. >> sure did. >> imprisoned their leadership and persecuted them and emptied the armed forces and sunni generals. so the sunnis in iraq are saying -- and oh, by the way, where was the united states at the time? we weren't paying attention, and we didn't really care.

so the sunnis are saying why the heck should we go with the united states and withraqi leadership when we've been abandoned once before? >> mr. ambassadors, your frustrations are shared and understood. what's wrong with trying new things? feel that in your muscles? yeah... i do... try a new way to bank, where no branches equals great rates.

. . . .

virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side. so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..."

ok, why's that? no hidden fees, from the bank where no branches equals great rates. 13 minutes before the hour now. in gaza, the israelis may have killed the head of hamas military wing. israeli intelligence sources are now telling fox news they believe they got him in an air strike. but hamas claims he's still alive. a hamas spokesman says that strike did indeed kill the commander's wife and infant son and at least three other people but that israel, quote, failed to get the commander last night. meantime, the israeli military claims it's carried out nearly 100 air strikes since the truce collapsed just yesterday. during the same time, they say palestinian militants have fired more than 175 rockets at israel. and now israel's prime minister, benjamin netanyahu, says israel, quote, will not stop until the rocket fire from gaza ends.

rick leventhal live tonight in gaza city. rick? >> reporter: shepard, that commander had been targeted for assassination by the israelis at least five times before, earning him the nickname the man with nine lives. and tonight a hamas spokesman went on the network here to say that he survived again, warning the israelis that they had made a big mistake and defiantly telling them to cancel all flights into tel aviv airport tomorrow at 6:00 a.m. the mass spokesman also said that israelis should not gather in large groups and they should leave their homes if they live near gaza's border. hamas is being blamed for breaking the truce with rockets yesterday afternoon, launching close to 200 of them. since then 34 knocked out of the sky by the iron dome including three that we watched from our position here last night. israel responded with relentless air strikes throughout the day, overnight and then throughout this day. palestinians reported dramatic rise in casualties. at least 22 more people have been killed since yesterday, and

more than 120 wounded, bringing the total to 2,038 dead and more than 10,000 wounded according to palestinian doctors and the health ministry. hamas said that the attack on his home killed any chance at peace. but of course israelis have said they will not negotiate under fire. and tonight israel's prime minister said that operation polar defense is not over yet, that israel's security is their ultimate goal and that if hamas fires more rockets, the israelis will respond with twice as much force. shepard? >> rick leventhal from gaza city, thank you. a live update from ferguson, missouri, in a moment as a grand jury convenes nearby. and attorney general eric holder says change is coming. that's next. there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe the gap will close when healthcare gets simpler. when frustration and paperwork decrease.

when grandparents get to live at home instead of in a home. so let's do it. let's simplify healthcare. let's close the gap between people and care. your studied day and night for her driver's test. secretly inside,

you hoped she wouldn't pass. the thought of your baby girl driving around all by herself was... you just weren't ready. but she did pass. 'cause she's your baby girl. and now you're proud. a bundle of nerves proud. but proud. get a discount when you add a newly-licensed teen to your liberty mutual insurance policy. call to learn about our whole range of life event discounts. newlywed discount. new college graduate and retiree discounts. you could even get a discount when you add a car. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

today a main street in ferguson, his carried only cars and not a single demonstrator. the demonstration there is seem to be dying down at least for now. our correspondent with the news from ferguson this afternoon. what do we know about what the attorney general is doing today? >> we know right now that he is meeting in the fbi field office in st. louis and that's going to be the headquaters for this extraordinary federal interest in this particular case. more than 40 field agents have been participating in it and he's going to direct them and give them a pep rally. earlier in the day he met at the community college with community leaders and expressed the amount of interest that the federal government will show in this case and assured these community leaders that the most experienced federal agents have been dedicated to investigating the death of mike brown. >> word has come out that the

police officer who did the shooting is said to have wounds on him and we have more details on that; is that right? >> reporter: right. officially you remember hearing from the police chief of ferguson that he was treated at a local hospital with swelling to the side of his face and possibly his head. an injury that happened during the course of his interaction with mike brown. now we're hearing information that he was hit hard enough to break all the bones around his eye. according to the gateway pundit which is reporting he had an injury called an orbital blowout fracture to the eye socket that. sites a source within the prosecutors office. a source denies that the leak came from them and says any of this information will be part of the grand jury investigation. as you know that grand jury investigation started today. the county prosecutor said it could stretch into the middle of october. >> of course we can confirm none of that. mike tobin thank you very much.

we'll be watching the situation in ferguson tonight. special coverage starts at 11:00 eastern time, 10:00 missouri time followed by the kelly file. we'll see you then and right after this.

bank of america reportedly reached a record settlement with the feds and prosecutors here in new york for its role in the fuelling of the 2008 financial crisis. associated press reports the bank will pay $17 billion. ap cites officials familiar with the settlement. of course millions of homes went into foreclosure during the crisis. little people lost big. as part of this agreement bank of america will admit it did make serious misrepresentations about the quality of its mortgage-backed securities. some analysts say it will not really cost bank of america $17 billion because a big portion of that money will be tax

deductible. so far no word from the bank or the feds. #toobigtofail. >> jodi arias has a few more weeks to get ready for her penalty phase trial. he was found guilty of murder in the first degree because she stabbed her ex-boyfriend and slit his throat and shot him in the head. she claimed it was in self-defense but jurors couldn't agree on a sentence. the second penalty phase set to start september 29th. she plans to represent herself. if the jury fails to reach a decision the death penalty is off the table. >> nasa's viking one blasted off from cape canaveral. the probe would be the first spacecraft to successfully land on mars. it took the first colored pictures of the surface of the red planet. a few weeks later they launched viking 2. it would send back more than 1400 images covering the entire

surface of mars and it all started 39 years ago today. the market was all upset bank of america has to pay $17 billion to big banks across the country. it must be crashing on wall street, right? right. he was just a hero, you know? >> and you know from the video that his last words were -- [ inaudible ] -- see my family. >> as one family grieves another family fears. isis militants proving they will stop at nothing in their fight against the west. welcome everyone. the gruesome beheading video getting posted last night. american journalist james foley dead at the hands of isis. officials think the executioner might be one of their own and now all