a.m., you can help them set up. billy ray cyrus also be around to talk about his life and his daughter. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- bill: this is a fox news alert. the man convicted in the lockerbie bombings is out walking free from prison today. 259 people on board,ç including 89 americans, and 11 people on the ground died when this flight exploded. officials are allowing him to return home to libya in a show of compassion. he has turmoil prostate cancer. he is expected to return home to a hero's welcome.

we will have a live report from sky news in a moment. new reports this morning that democrats may go it alone on the perform for health care. democratic congressional leaders considering a nuclear option to pass the most controversial parts. that means the democratically- controlled senate can force through reform with 51 votes, forcing approval of a plan rejected by republicans. good morning, everyone. megyn: what a busy morning we have for you. that nuclear option is the first of twoç big developments. the second is a rather stunning letter sent by the house of representatives to the insurance industry. congressman henry waxman is

chairman ofç the house, n.j., d commerce committee. he guided one of the reform bills through congress. now he and his committee are demanding dozens of private health insurers for over information to their committee, and almost immediately, demanding to know how much executives are paid, how premiums and benefits are paid out, and the amount of money spent on conferences and travel, without any explanation as to why. so are supporters of the president also seeing these demands? bill: molly is with us continuing the coverage of this story. what is in the letter? >> they say house democrats are putting pressure on insurance

companies. again, thisç is from henry waxn along with part cpac. they say the committee is examining executive compensation and other businessç practices f the health insurance industry. -- along with bart stupak. the companies have been given until september to respond. the congressman wants information on revenue premiums, claims payments, where birds on conferences, company property, as well as travel, food, and get this. bill: has the company given a response yet? >> the companies have declined to comment. the three largest insurance companies have said that they received the letter. i just spoke to a spokesperson for the american health

insurance plan, one of the industry associations, and calls it a politically-motivated fishing activity. çhe says letter raises the broader issues thatç these companies will have to face a larger increase into their practices. bill: if they get the information, what will they do with it? thank you. megyn: meanwhile, hundreds of people backing into a town hall meeting in new york. the democratic congressman telling his constituents he wants to hear from them before voting on a reform bill. the audience voicing repeated concerns that congress will pass the legislation without ever reading it. where would they get that idea? >> the government does not do a

good job of running any plan, and they should fix the plans they have on the books before they take on something like this. megyn: the congressman said that he is reading the legislation, saying it is taking some time to get through sá all. bill: he is probably in an attic somewhere. see you in one month. there are published reports north of the door -- border in çcanada that thousands of surgeries may have to be cut due to underfunding. as you know, canada has nationalized health care. megyn: this is a fox news alert. weekly unemployment numbers out with an unexpected jump. the number of first-time jobless claims rose to 576,000 last

week. economists expected 25,000 less than that. we should also point of these numbers do not reflect the thousands of people whose benefits have not run out. stu varney is here to clear it çup for us. you have these people who were just laid off filing for unemployment, but there is a limited time that you can be on unemployment, right? >> that is right. thereç are millions of people have dropped out of the work force. maybe they've retired early, just not looking for work, are of working age and are not looking. we cannot tell. what we know is we have over half a million people a week who

are registering for unemployment benefits. right now we have just over 6 million collecting those benefits. that number is rising. what that means it is no hiring, still laying off, and the amount of money available for spending is shrinking, so therefore, we are not spending. take a look at sears'numbers. 8.5% down in the amount of money spent. megyn:ç how does this compare o the numbers that we have been seeing? the unemployment news has not been great, but it has been better than the several previous monts' is this just a fluke? >> maybe, but you have seen a reversal of that downtrend. in the last couple of weeks you have seen an increase in the number of people filing for

unemployment claims. megyn: thank you, stu varney. bill: you did not pay for the engagement ring, but you did help pay for one couple dramatic marriage proposal -- which we kind of like. how one counselor burned stimulus money. megyn: and he reported his model girlfriend missing. some are reporting that she was his wife. after her body was discovered reality tv star cannot be found. today,ç new clues as to where e man had disappeared to. bill: on capitol hill in is called the nuclear option. democrats could push the button and pass health care reform by doing so.

megyn: what are we planning on our screen? [laughter] bill: the political fallout that is possible as a result.

5 ú megyn: welcome back. we are looking at live pictures of lockerbie, scotland where the man accused of the airline bombing over scotland is about to be set free. he received a life sentence. now because he has cancer and is reaching the end of his life, they are freeing him on the basis of compassion. çthose scars have not healed 40

lot of people around the world, but now he is being granted compassion for the victims that he never showed. and houseç -- and has a lot of people upset. moment from now, you will see him reclaim his freedom. >> why should i have to pay for someone else? i like my own insurance. bill: that was one voter in rhode island. now we are hearing reports from congress that they may use their power in congress to pass health care. doug scheon is a democratic pollster and a fox news contributor. this is kind of back of hand,

moderate democrats. how is this: to go over? >> -- going to go over? ç>> probably not very good. for a vast number of the american people and the moderate wing of the democratic party, that is a nonstarter. bill: do you believe it is a moral obligation for americans to get this done? >> i think there is a moral obligation to improve the system, not for the single payer. i think there's also an understanding of building consensus. bill: so democrats are in fighting right now? how do you redo this? >> i think there are some,

unprintable. we all agree on cost containment, covering some if not all of the uninsured, portable insurance. not allowing insurance companies deny coverage because of pre- existing conditions. but i think we?x'eed to build consensus, and those in the center of the party are looking for reconciliation in the broader sense. bill:ç how muddy the you beliee the waters have gotten, in a political sense? what is the risk if you go forward with a simple vote? >> you completely polarized the country and to make it more difficult for the president's agenda. the left maintained if they pass health care, credit will be to them. i believe we have to govern on a higher plane and we have to seek consensus if we are going to succeed as a nation.

bill: does the white house sees it that way? i guess if you go that route you aren't leaving a lot behind. >> i think so, and that is the reason the white house has been going back and forth on this public option. i think they are between and have not decided what to do. bill: it is august. one year from nosç we have midterm elections. if you give the back of the hand to all of these people standing up at town hall meetings, you areúg@ving republicans a platform to run on come next year. >> that is right. people like harry reid and christopher dodd and barbara boxer are showing vulnerability in the polls. there is reason to believe that the democrats, for the first time in a couple of elections,

are vulnerable. bill: where will we be one month from now, will we have moved the ball forward? >> the real issue is to get consensus in the democratic party. ramming through a bill within a narrow majority of the senate and house, losing a lot of democratic votes, that is not the right way to go. bill, thank you. -- bill: thank you. megyn:ç top democrats are askig insurance companies to open up their books. some are calling it an audit. çis this oversight, or are democrats using your taxpayer dollars to control the financial industry? bill: we are going to come to a man who works at a news and

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could save 'em hundreds on car insurance. it's actually doing it. gecko vo: businessmen say "hard work equals success." well, you're looking at, arguably, the world's most successful businessgecko. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people.

bill: police in california, and now police in canada, are searching for a tv reality store. the body of a model was found stuffed in a suitcase.

her husband run in alexander reported her missing on friday night after they attended a poker tournament. he is the start of a reality tv show. police say he has a previous conviction of an assault on a woman. also in june he was charged with battery against the same woman. megyn: this is a fox news alert. here weç are in edinburgh, scotland, where the man accused of the bombing of pan am flight 103 will be freed. çhe is the only person convictd in connection with the bombing of pan am 103, which killed 259 people on board, including 11 americans -- including 11 people on the ground.

this is the convoy on the way to pick him up. he will then be transferred to the airport, the boarding a g jet going back home. the families of the victims are outraged over this. çhaving attending syracuse university when this happened, the stories of pain and for work and less. one mother upon hearing theç ns that her child had been in killed on that flight tried to throw herself out of the car on her way to the airport. try to imagine the pain of those students and family members when

they learned that they had been killed by some psychotic terrorist. it was meant to go off over the ocean, but instead, it happened over lockerbie, scotland. 189 people aboard that airplane. i will tell you, one of the victims' family members, he lost his 31-year-old wife in the attack. he said he wants this man returned the same way that his wife was, in a box. they do not really want to show compassion to this convicted terrorist. terrorist. hillary clinton is no about it. they are all urging this judge not to make this decision, but he has shown a bit of compassion.

çsome in scotland say it is appropriate to show mercy. one british reverend, whose daughter died in the attack, said it is our christian duty to show mercy. you can see why this is full of controversy. moments from now, the release of one of the most infamous terrorist we have seen. our sister network sky news is covering this. >> he is in the back of that van, and down the paperwork, and tied up the loose end. he will be escorted by prison staff, who will hand him over to a libyan consular officialç to taken to the airport. there is a private plane due to

arrive in glasgow to transport him. i believe his sonç will join him, along with the libyan consul in general. it has been his purpose to take care of this. this will be a quick turnaround. he is already in the police van. the sergeant, the organizer of the convoy, has been back and forth between the local hospital. it only takes a few minutes to transfer him to the hospital. several more minutes to the airport.

i am told in poland -- inç ters of the turnaround, it should be a matter of minutes. there is no reason to hang around. he does not need to state inside t$ jail a second longer than he has to. these are special arrangements, obviously. normally they would carry a bin bag but megrahi is a special case. people may threaten him, given his record, and given his conviction of the worst terrorist atrocity in british history. it was a concern of the libyans that rather than being tried before a scottish court, foreign agents may try to assassinate him.

that was a real fear in the libyan administration when megrahi was handed over. when he stepped off a u.s. plane in the netherlands, initially in thmç hands of dutch police, and told dutch police roughed him up. he had a hopeç over his head, s arms behind his back, and was in ankle chains. i am told he had a real fear that he would be killed on the first day of handing over. such was their suspicion, they asked their lawyer to sweeleep n the jail cell with them.

he will have no fears of that in terms of transport. he has a six-car convoy, courtesy of police, with added to care recover on top. it will be a clear road. -- added cover on top. çit is a very clear road to the destination. they would not have wanted a very windy road through homes. that would be considered a riskç by officials. they want a clear, main road, ideally with two lanes either way.

the convoy should be leaving any time soon. megyn: they have a few more detail than we do in terms of how this transfer will take place. for those who may not remember the bombings of pan am 103, many would argue that this is the equivalent of releasing one of the 9/11 attackers. this is one of the most infamous terrorists in modern history. he was convicted of killing over 25" people. he placed a bomb on an airplane that was calling from london back to new york, and it was supposed to go off over tze atlantic ocean, eliminating the trail of evidence, but it went off early over lockerbie, scotland. the pictures at the time the

greater the airplane made in the ground told the story of the impact and the hell those on board must have experienced. 35 students from syracuse university, other students as well studying abroad in england. it happened four days before christmas. now the families of those victims learn that their children's loved ones, husband, wines, killer is being set free on grounds of compassion. he will be allowed to die in his home, unlike their family members. bill: he was only convicted eight years ago and was supposed to serve 25 years. i remember this as a tisc when americans awoke to the idea of

terrorism overseas and americans being a target. not just this case, but the night club attack inç berlin, when americans were shot and killed in rome that a ticket counter. -- at a ticket counter. this was happening at a time when terrorism must hitting just about every european capital. it has been reported that no more khaddafi, the libyan official has said his own jet to pick up al-megrahi so that he can die back home with his friends and family in his home country.

meantime, the white house and secretary of state hillary clinton have both appealed to discuss government saying they did not want this to happen. çwe are already getting statements of regret from the secretary of state. from the white house, we extend ourç deepest sympathies to the families who live each and every day with a loss on loved ones. we recognize the effects on such a family. their lives are indeed changed forever. megyn: i was a freshman when this happened at syracuse university. the next fall i studied abroad in italy. our program was closed almost one month early because at the

time in florence, italy, someone had written "yankee, go home" on the downside of the university, and had sent a bullet home to the abroad program in syracuse. parents were terrified, students were scared. whenç the news came that this airplane had gone down, you had 18, 20-year olds. i rememberç hearing a girl in y sorority. herb with and had proposed to her while they were studying abroad. she got on that airplane, and was killed. just one story of someone who suffered at the hands of this man. this is not entirely unusual in

scotland for them to release prisoners on compassionate grounds. in fact, it has happened dozens of times since 2004. his happens to be one of the more controversial, especially in the u.s., because of what he did. imagine khalid sheikh mohammed being released a few months early to die at home. granted, his crimes were not quite the magnitude -- only killing 270. but that is no comfort to those who had the defense on the flight. çis are they, there is a split. some are favoring his early release. some believe he is not guilty and was turned over by the libyan government as a pawn. çthe administration here in the u.s., including president

obama, are not in favor of this. bill: i mentioned the airplane, as well as what happened on that date. there was an investigation in scotland and london and libya to find out what was responsible for this. it took no mark duffy a good 10 years before he performed his waist. we have seen that change come about as he enters the desk of his life, too, as the libyan leader. çmegyn: for those who do not

remember, they recreated pan am 103 in a painstaking investigation that involved international authoritiesç picking up microscopic pieces of the wreckage, along with larger pieces, because it went down over land, instead of over sea. in the weeks that followed in an airplane hangar, they managed to rebuild the airplane in a way to tell where the bomb was placed and how it went off. it was in a suitcase. let us listen to our sister network. >> the lockerbie bomber on his way back to freedom. a short journey to glass go airport.

about 15 minutes to the airport with a police escort. the road is closed. a private jet has already landed. çit has enough fuel to make the trip, so there will be no hanging around glasgow. çbill: let's get away from tha. you can imagine in certain cities, people react different ways when they see television cameras. we apologize for that. megyn: we apologize for that man, who used a curse word, but it is a man expressing his

anger. this man has blood on his hands and is allowed to go home and die with his family because he has prostate cancer. bill, one other thing -- hillary clinton saying the u.s. is deeply disappointed by the decision to release megrahi. çtoday, she says, we remember e lives of those lost. december 21, 1988. we send ourç sympathies to thoe who live each day with their loss. a similar statement from the white house, not a short time ago. megyn: to the extent you want to weigh in on this, you can participate in our fox news

poll at foxnews.com/happeningnoamericas. we will be reading some of them. the outrage is very real. people are truly angry about this. no matter what your religious beliefs are, even if you are a supporter of showing mercy, he was not given the death penalty. he can read books, have contact with others -- that is a lot more than the victims of those people on the airplane were provided. bill: he was convicted in 2001, just to refresh our memories. he was convictedç to a minimum7

years but was released only eight years later. çit was the christmas holiday, blowing up over the skull and sky, making a thunderous landing on the small town of lockerbie. the libyan leader had appealed and lobbied for the return of megrahi, and it took on an added sense of urgency when he was diagnosed with prostate cancer. the reaction has been different on the uk side as to the u.s. side. some are expressing sympathy to him. here in the u.s., a much different feeling from those affected by the tragedy.

they are adamantly opposed to the release. there is also a note suggesting that the white house was not notified in advance that he would be released, but had anticipated it, but was getting ready for it -- and was getting ready for it. çwe should also note, several inmates, based on local law have received similar treatment. in this case, it wawú(rostate cancer. megyn: we were asking for your e-mails. this is a representative one from dina. i believe this man should die in prison. even if they do forgive, and does not take away from his prison term.

-- it does not take away from his prison term. the families have been very organized. they have their own web site, and they are clear they are in support of this. to the administration's credit, they agree. they tried to reach out and say do not do this. apparently, that had no impact. now he is on the way to a private jet that will return him home for the remainder of his life. some do not believeç that he ws ever guilty of the crime and was offered up as a patsy, but that is not how the court saw fit. he was sentenced toç a minimumf 27 years to life.

we may catch a glimpse of him after they arrive at the airport. bill: in the meantime, sky news reporters are outlined that prison as well as the airport. >> indeed, that is enshrined in scotland's criminal justice history. you may be released on compassionate grounds. they made the point that megrahi could live beyond three months, and besides all of the issues, politically and what not, that is the issue. if we see in one year that megrahi is living the life in libya after havkn miraculously recovered, that would be evidence of underhanded dealings

and that the libyans had hoodwinked scotland. that would be the danger for officials. çhowever, they are working on the medical information that they have gotten. having thbeing diagnosed with prostate cancer, his state is deteriorating and is no longer responding well to treatment. i have spoken to people who visited megrahi in jail, and they say that he is looking like he is deteriorating quickly. he cannot sit down for more than 20 minutes. he does not sleep well. he is up at 4:30 every morning because he cannot sleep. generally, he is in discomfort.

i was speaking to one of the libyan consulate officials, and he said the degree of medical care that he was getting in tied --ç inside the jail was equivalent to first aid, busbasc facilities. çon that basis, megrahi was granted compassionate release. bill: we are going to stay with this a bit longer. we are hearing the route to the airport is not very far. we may get a look at megrahi. that is what we are waiting on. in the meantime, stay with us on

this breaking news. it takes us back to a time when americans above to the threat of terrorism. five years later, the world trade center was bombed for the first time. of course, we all know what happened in 2001. the same year, he wasç convict. thinking about those days in the 1980's, americans overseas as students or troubling, theyç were clear targets in european cities. you think about the twa airplane when the pilot had that gun to his head. those were the headlines that we saw a year after year as this

bubble of terrorism with being aimed at americans. it reached a breaking point on 9/11. you can express your opinion through e-mails, foxnews.com. we want to know what you think. is this the right thing to do? you can guess how the polling is more than 90% of you believe this is the wrong decision. bill: here is an interesting contrarian view we are getting. this is fromç steve. he feels differently. he lost his two brothers in this

accident. he lives in scotland and said i never believed justice was totally served. haven't spoken to many families here in scotland, -- having spoken to many families here in scotland, we believe this may lead to a free investigation into the disaster to get the truth. he has read through the evidence, and as a former judge, he would not have convicted him based on the evidence put in front of the court. having spoken to the original judge, he, too, has his doubts on the evidence and in private has shown some regret to the decision he came to. that is from one family member who lost two brothers. as i pointed out, some believe this is the right decision because they do not believe that this is necessarily the killer of their loved ones. they won the right person found

it and put in jail appropriately. so there is a split. virtually no one agrees with thisç decision. i have not heard from many families here in the u.s., although we welcome them. just a sample from our viewers. this is an outrage, he should die in prison. this is a slap in the face of american policy. i have dedicated my career to fighting terrorism. obviously, he does not want to see him set free. bill: in the meantime, we want to go to amy kellog who is in london. you have been in libya many times. how is this story received there? >> recently, libya had been courting western journalists,

western investment, british and american in particular, to show that they are open for business and a more open society than they have been in theç past. i did speak to one libyan journalist, and i did find out that there will be a heroes welcome for him. of course, the justiceç ministr in scotland has said that there will not be some great fanfare when megrahi arrives, but the sense is there could be something happening on the ground. it could be more discreet as it was when the other man who was originally charged with the involvement in the bombing was convicted and sent home. in this case, and will probably be low-key. but still, megrahi is perceived

as with the libyan press would describe a political hostage. the is a part of one of the most powerful times in libya, so there will be people treating him like a hero when he returns to his homeland. çbill: you think about the evidence that was used to convict him. how strong was it? >> that is where the controversy here in the u.k. lies. çpeople supporting his being sent, and not necessarily supporting it because of some compassion that mercy -- compassionate mercy, but because there was a miscarriage of justice. there are a number of conspiracy theories, including other countries being involved, although nothing has been proven. there are people who have been

following this case through their own ways and believe there could be a connection to libya, as well as other players involved, and megrahi was a fall guy. çthat is where a lot of the controversy is. they feel the evidence was and. basically, it was a piece of cloth that was found, and a track that piece of cloth to the store owner and he said that he sold it to megrahi. the justice minister remains that he stands behind that conviction, but there are certain people who have been

following this case who will leave that perhaps that was not enough evidence, that it was not strong enough, and megrahi they have been involved in sanctions. libya was involved in other acts ofç terrorism and arms transfe, as we know, as well as other questions that remain. çpeople want to see some more digging around this case. bill: thank you for the context. you also mentioned the libyan leader. he has gone through a personal political evolution in the past five years. he landed in france recently, with circus animals, women traveling in his party.

that was a business decision. it is a much different attitude with us here at home in the u.s. can you reflect for us, perhaps, how çgaddafi is responding to this? ç>> there are a lot of oil and gas deals to be done in libya and british petroleum does quite a lot of business with them. it is also important to point out, there are congressional delegations going over to libya to explore business opportunities. senator mccain has on one hand condemned this decision to send

megrahi home, but recently he was part of the convoy to travel to libya to look at some non- defense merchandise. i do not really know what that is, but in the last six months there has been an ambassador installs in tripoli. that was anç historic appointmt because there was a decade without any u.s. diplomatic representation. it is a slow process, but western countries are eager to normalise ties with business leaders as there areç business opportunities to be had. certainly, khaddafi is seen as a theocentric but influential. -- essentric but influential.

bill: we expected the drive not to take this long, frankly, based on the reports, but it is taking in the longer than expected. stay with us. i think it is telling, when you say in the homecoming for megrahi is not expected to have muc$ç fanfare. perhaps that sends a message from the libyans not to show off. >> it would be detrimental to relations between t u.s. and libya for that to happen, i think. nine journalists contact said that he would not be surprised if megrahi was invited to a greeting, but that is just speculation.

again, he is part of a powerful tribe in libya, so clearly there is a lot of support. megrahi has always protested his innocence. there was a payoff to the families of theç victims, and t was a legal deal, a package of steps taken in 2003 to rehabilitate media. it announced it wasç ending its weapons of mass destruction program, taking responsibility for this, and turning over the suspects in the case. the other suspect was acquitted.

so there was this package of steps to put together to help bring libya back into the fold. it was also a signal to other countries such as iraq, iran, who had or were suspected of having programs of mass destruction, that if you can cut a deal with the u.s., you will be able to normalize sanctions will be -- will be able to normalize, attention will be lifted. -- sanctions willç be lifted. however, libya does not have a democracy -- this year is 40 years of their liberation. çbut people say there are signs of change, and certainly western companies, western delegations

going there helps to open up the country to change, the opinions, ways of life. bill: thank you. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- in case you are just joining us, you are watching in developing story, the only man convicted in the lockerbie bombing. he is now returning home to die, suffering from prostate cancer. megyn: he has been released on compassionate grounds. this has happened 48 times since 2004 in scotland. he is suffering from a terminal m9$(lc@&c+ this is the criteria. likely to die soon, and no threat to the public. no threat to thdç public. that is the third criterion to release someone.

apparently, this judge feels like this man, convicted of killing 260 people, is of no public threat. one of our viewers disagrees. this is from tammy in texas. he is a terrorist. he has nothing to lose. he is a good candidate to strap on a bomb and take out as many people as he can i have no sympathy for him as he did not have for his victims. many cannot believe the idea that he does not pose a public threat. this from patricia, another viewer. i knew someone on that airplane. çthe father of this young man aboard that airplane killed himself over it. now this piece of dirt gets to

be released to go back home. çthis is unfair. there is no justice for the families affected by this monster. lastly, christie from north carolina. my heart is heavy as i watched as coverage of the pan am daughter being released. i feel for the hunt family from my home town who lost their daughter. i cannot imagine how the families of the victims are feeling as a dahe is released. this is making the families of victims suffer all over again. it is hard to imagine what there are going through. as i said, one of the husbands of one of the victims said he would like to see him go home the same way that his wife came home to him, in a box.

it is hard to show sympathy for someone who hasç killed loved ones. and four days before christmas. compassion for them was under the lacking. çbill: -- utterly lacking. bill: shortly the convoy will live and megrahi will be going home. cheney kellogg -- amy kellog gave us some great information as background. investigators tried for many years to see who was

responsible. that cloth that was purchased overseas that was eventually found on the bomb was tracked to a store where the owner fingered this man, andç was eventually turned over to scottish authorities. it was a very long process and a difficult investigation. it was a brutal story that y%aa"áujip @ the explosion had led to an enormous crash landing and debris was scattered all over megyn: there is the videotape of the airplane after it went down. we are trying to get the videotape of the airplane after it was reconstructed as part of the investigation that led to

his conviction. a lot of our viewers and running in about whether or not forgiveness is appropriate. as a question, they say is appropriate to forgive what he did. here is a contrarian view from the minister. forgiveness for the bomber is a personal thing. forgiveness from god çis up to him to seek. 9 there is an issue here. the government has the responsibility for protecting the public from people like him. --ç neither is an issue here. bill: officials have long argued for the the base of megrahi. apparently he was diagnosed with

cancer one year ago and his lawyers argue that his condition is deteriorating. certainly, many people are of different views on his release. one man who had a college roommate on board that airplane said he believed he was putting commercial interest before the interests of families victims. he says if he is released on compassionate grounds, who will provide comfort to the family members? çmegyn: we are moments away frm getting our first look at him since going to prison. this will be our first lookç, t

only us, but also to running members of the victims, and over a decade as he boards this jet to go home. we are not sure who is a board and who might be greeting him. some advocates of this man are worried about and a session -- assassination attempt on him, which is possible, but he has already been given a death sentence for prostate cancer. bill: i'm not sure which vehicle is holding him, but the camera is in the area where it should be. we believe he is in the that white van. we shouldç be able to tell the

difference between police and people accompanying him. at the moment, it would be difficult for us to tell. çmegyn: as far as we know they are not giving him any distinctive clothing. i were dior's raise a good point. one of the grounds for release -- poses no threat to the public -- what incentive does he have now to be a law-abiding citizen? if he is a murderer of 270 people, what incentive does he have in the last three months of his life to live that time peacefully? how can such a man be trusted? bill: in all likelihood, this is him, dressed in white athletic

gear. megyn: that is as tight as we can get on the shot. i wonder if sky news has any more details. j)q @ -- bill: and they have been on the scene. our producers have suggested that that was him in theç whit. megyn: again, given three months to live. now he will live out his life with his family. bill: this is sky news, our

sister network. we believe this reporter is right near the airport. >> the doctor said haven't been diagnosed with terminal plastic cancer last september, in -- his condition deteriorated considerably. in recent weeks it has gotten worse, they said, and drugs used to treat him are proving to be ineffective. he cannot be treated. the jail does not have the facilities required to treat someone in his condition. he needed more care. the libyans have never been happy at the treatment he was getting. i spoke to one of them last week and they say that the treatment he gets his first aid çlevel, not even gp level. he requires a team of consultants looking at him. going back toç libya, they are

not erased with the greatest medical sources. if you had a condition like his, typically you will go elsewhere in europe for sophisticated treatment. that would suit him best, but he is going home to die in a country that will not really be able to turn things around for him medically. megyn: pulling away, we have one of the family members of the victims of pan am 103 right now. he lost his son on that fateful day in 1988. thank you for joining us. tell us about your son and when he was aboard this airplane. >> my son was a 20-year old syracuse university college student spending a semester abroad in london. megyn: how did you and your wife find out that the plane had gone

down? >> we turn on the news channel and syracuse university was playing a scrollç with the victims' names on and on the news. megyn: i think a lot of people have forgotten what families like you have gone through when you realize the full extent of the carnageç that had taken place. give the perspective to those watching, the perspective that they need to hear. >> i hope none of them ever need to hear it. it was an impossible day, before we had all of this communication, so we have to wait for the television station. megyn: as you watch this man who

was convicted of murdering your son, walking up this staircase to the airplane, what do you feel? >> there is a good part to this. maybe now we will not hear his name constantly on your headlines. this man a a low-level intelligence agent for a third level country and you are treating him like he was michael jackson. i hope never toç hear his name again. megyn: some of the other family members have said, we do not believe this is the guy. we have 1 e-mailç from the famy of a victim's in that they are fine because they do not believe it was him.

maybe now they will pursue justice of those who were actually behind the bombing. where do you stand on that? >> first of all, there are no relatives of the victims in scotland. there were 189 victims from the u.s., about 20 from the uk. those people have constantly and consistently been very distrustful of their own criminal justice system, and probably for good reason. it would make them less trustful of the judicial system as blacks are of the government here. if you actually listen to the evidence presented, it was obvious he did this.

i have given up trying to understand what happened. it is just the way it is. megyn: how did you feel when you found out thatç this scottish judge when releasing him on grounds of compassion? one of the of criterium is that he faces no danger to the public. >> and they released and 80- year-oldç man a year ago who ws facing death. i do not know if you can say that with megrahi. maybe he bonds another airplane before he dies. megyn: can you understand compassion for a man like this who clearly had none for your son? >> personally, compassion comes after someone says, forgive me.

i have never heard that. perhaps more people are more compassionate than i m. megyn: for those of us who have not been following the investigation as closely as you have, has he ever shown any remorse, come close to taking responsibility for the bombing? >> not in this life. maybe he will in the next month or two. çall he does it is smirk. he does not admit anything -- pleading innocence. megyn: your point is well taken about not turning him into some çsort of celebrity. >> [laughter] i think it is like for that. you have done that for the past 10 years. megyn: speaking for fox news, i can say that is not true.

watching him being released from prison, and the newsworthiness of this, people wonder where he will go next, your story really brings it home. before we go, leave us with a final thought on what you would like to see from this point. >> you will see in timber we will be picketing outside the u.n. when lamar cannot he shows up. -- momaar gaddafi shows up. megyn: thank you for the perspective. all the best to you. bill: his son was rick. what a way to find out on television, when the victims' names are scrolling across the television.

that was that families experienced. their plan is now backing away. we can confirm that was megrahi in the track suit. flight. we will see it go into the air. just one family reflecting now on what this means for them and what the loss meant for them. on days like that, you simply do not forget. the tragedy stays with you for new york whose wife was on that airplane. he says i am totally against this. he murdered 270 people.

this may sound crude but i want him returned from scotland and box. there is a british reverend, his daughter was on board the airplane. he said this week he would be glad to see him return home, saying, it is right he should be able to die in dignity with his family. it is our question right to show mercy. -- christian right to show mercy. megrahi is now headed home to die. megyn: it is tough to understand what this means for a lot of people who did not live through the bombings, or were too young to remember, but this was at

that (ime one of the worst terrorism funding we have seen with americans as victims. this was december 1988, when people went about their business not worrying so much about terrorism. here you have video of the nose ofç the airplane. it was meant to go down over the atlantic ocean, which would eliminate all of the evidence. something went wrong, and it went all over lockerbie, scotland, which led to an additional 11 lives lost. the remnants of the airplane were taken to an airplane hangar and recreated, piece by piece. that led to the criminal investigation that resulted in his conviction.

families but after he had been sentenced he would never see daylight again, for his freedom , but not scottish authorities have determined he is worthy of compassion which he failed to show anyone in the course of his crimes. bill: we gave you reaction from scotland, from london, reaction from the families suffering from this, reaction from the white house, secretary clinton not happy. now eric holder says he is disappointed. there is no reasojç for releasig this convicted terrorist. megrahi did not show compassion for human life. megyn: not only that, he has shown no regret. he has taken no responsibility.

he has not asked for forgiveness, and he was shown compassion from scottish authorities. çbill: their plan represents freedom for him. megyn: in the meantime, we are going to move on. this is a fox news alert. going in alone on the road to reform on health care. that is the latest from capitol hill, where democrats are now debating a so-called nuclear option. that would be to bypass a position from the other side of the aisle and do a cramdown of health care reform with just 51 votes in the senate, opposed to the normal 60. we are in uncharted waters here. good morning, again.

bill: democrats now considering this fast track for government- run coverage, allowing the senate to force it through with only 51 votes, what they call reconciliation. the white house has had for many months they wanted republicans on board. will that be the case? right now it is shaping up not to be. megyn: it might be a bitter pill for republicans and many americans who have made clear they are not supporting reform. mike emanuel is at the white house where a briefing just wrapped up. what is the one house saying ì(lc@&c+ compared to bipartisanship? >> robert gibbs continues to say this is not their focus doing reconciliation, but this is where the words matter. he is not sayingç that they are ruling it out or that they are against it. it is simply not there focus.

he was asked some nitty gritty questions in terms of splitting up the bills. he said i am not a parliamentarian or an expert, and would get back to us during the briefing. he did say that the nuclear option was not their focus, but is not ruling it out. megyn: clearly, it is being discussed, so from where? >> all indications are that harry reid and his colleagues are talking about these options, from mining and the republicans about what is available to the democrats, if necessary. there were stories yesterday saying that the democrats were ready to go at it alone. perhaps a reminder to republicans than they do not control the senate, house, or the white house.

megyn: in the meantime, the so- called gang of six are due to meet tonight by telephone. this is essentially the last chance of bipartisanship. what happened during that phone call, where do we stand in terms of making this a bipartisan bill? >> last night, chuck grassley said that he did not believe much would get done over a phone çcall. they could talk about when they are hearing, but another member of the gang of six said that this talk of going it alone is not good and threaten to blow up the senate. americans would not have confidence in healthç care is 1 votes were used to push it through.

megyn: we will have news on that tomorrow. he mentioned harry reid, who has brought up this cramdown issue. no doubt, this is from his spokesperson. we will not pursue reconciliation until we have exhausted efforts to produce by partisanship in the bill. however, patience is not unlimited, and we are determined to get something done this year by any legislative means necessary. we will have an update after the meeting. bill: first-ever town hall meeting in new up -- in rhode island. here is a sample. [applause] if you were guessing that hundreds of angry people showed up, you are either psychic, or you have been watching our network. the congressmen comingetting a f

an earful. ç>> i am afraid you are going o balance another check. why not audit the federal reserve?! >> i am concerned as a small- business owner how this will impact me. how will this help me as an unemployed personç with a pre- existing condition can get health care that i can afford and live with? bill: the congressman injured about two hours, often times drowned out by yells calling him liar. megyn: time democrats are now demanding dozens of private health insurance companies for over revealing information to the government.

henry waxman wants companies to turn over data about what the executives are getting paid, how they're spending money on things like competence, trouble, how much they make in premiums, how much they pay out in claims, and on and on. suddenly, it sounds like an irs audit. the letter does not explain why they are asking for it, and some believe that something is up. right now we have the of -- vice-president of american health insurance plans. essentially, a cooperative. henry waxman once in a lot of information from insurance companies, including the biggest ones -- aetna, indicted health care, and so on. ç-- united healthcare, and so . many people believe he is looking for a demo in health care debate. what do you think?

>> we believe this is politically motivated and politically timed. it is desi) to chill the scene. this could be the response from conagra's going forward. much of the information they have requested has already been reported to the sec, state insurance commissioners, but there is all this additional information including competitive information, information on who attended a conference and what purpose. this is politically motivated and politically timed. there is no question about that. megyn: it is interesting there was no attempt to explain why it was needed. everyone should know, henry waxman is on one of these committees that is behind one of these health care bills.

having said all of that, what do these insurance companies do now? they have been requested to submit this information by a congressional committee. they can say no, right? >> each company decide for themselves. we can resident -- represent all of them, but they will decide how to respond to the request. the great irony here is a health plans and our association has a strong supporter of reform, and we have from day one. there is a lot of talk about pre-existing conditions. çwe have proposed to take pre- existing conditions off the table to get everyone covered, to make sure it is affordable. the one issue about which we have raised questions with doctors, --, hospitals, çpatients, is the government-rn plan. this is the response that we get because we have raised

legitimate, substantive questions about this government- run plan. megyn: do you feel this is retaliation for your not taking part in this? >> no question this is politically motivated and politically time. the polls are starting to show that this is tanking, the american people are rejecting it. they want common-sense health care reform that will allow them to keep the coverage they have. megyn: i know you do not represent these insurance companies, but what are you hearing? are they planning on complying? if they do not, and we waxman can apparently subpoena it, as a member of that committee. >> that is right. i cannot speak to how the companies may respond. what we are hearing is that a lot of dismay and disappointment

that they are being singled out for political reasons. they are being targeted in a political witch hunt that is designed to distract attention away from the government-run plan. asç you noted, the letter does not suggest any impropriety on behalf of these companies. it is just asking for everything that you have ever done, regardless of whether that information has already been provided. ças well, there are no princes than any information, if provided, but not the week to the news media to be used in a political way to try to attack health plans further. megyn: we are trying to find out

more from henry waxman on his purpose. thank you. we appreciate it. bill: this is a fox news alert. breaking news on the economic front. a private firm has released its own forecast of u.s. economic activity for the fourth straight month, these indicators gained ground, gaining 0.6% last month. now the group says that the indicators showed that the recession has bottomed out and expect to see growth in activity some time soon. we also have the jobs number today. people are still losing their jobs, and that brings us to road to the recovery. our small business is seeing signs of improvement? signs of improvement? we visited one small town

business founded in 1964,ç gershow recycling. the company processes metal and paper products. and julie banderas is live with us at the recycle and plant in memphis. >> i have my hard hat for you guys. this business is really the foundation of american businesses are, small and medium-sized businesses. they generate 750 employees. here we have the president of the company. first of all, the numbers are showing a slight increase, that the economy is doing slightly better. are you hiring? >> we are not currently hiring. no layoffs, but not enough business to justify more

hirings. >> i want to talk about cash for clunkers. everyone knows that this was a government program that ran out of money. it gave $4,500 to people who traded in their clunkers. they have come here to the scrap metal yards. if you can over, that is the result. this is what the government thought would pump money back into consumers'ç wallets by offering rebates to people that were 25 years or younger and got 18 miles per gallon or less. how many cash for clunkers vehicle do you have? >> about 400, and we expect another 400 as soon as the dealers have the money released. >> it was good for a little while. would youç like to see cash for clunkers revised, should the government put more money into it?

>> from our company view, it is great for business. we are getting vehicle that we would not normally get that we can also sell off for scrap. >> thank you, we appreciate it. bill: he mentioned jobs, too, and that is critical. higher than expected, 567,000 americans filing for first-time claims. meghan, i feel like we just blew by the fact that she has a matching hard hat for every of the -- outfit. i have been to her place. i may need to look at her closet. many of the nation's farmers are also the kind of business owners to create the jobs in the country. for a snapshot, we go to a family-owned strawberry and produce farm in california.

they have an annual revenue of almost $10 million. that is where we have william la jeunesse. how is business on the farm? >> state-çwide, not so good. demand domestically is down and with the drought situation, there couldç be 25,000 unemplod in jobs in agriculture this year alone, but that is not the case everywhere. we have heard the cliche many tames, grow local, by local. it is working for you. >> people like what we have, it is fresh. >> sourcing, the local, that is important? >> yes, they love it.

it is local and is right there where you need it. >> are you hiring? looking at your business, where are you going in terms of hiring, business, what you are grossing? >> we are only hiring when we need to, and we are really watching it. we try not to do it because things are tight. >>ç are you losing people comig gaming people? >> we have a lot of people because there is no construction, and people are looking for work. >> inç terms of demand locally, in the past 18 months, things are good? >> it depends. when gasoline was $4 a gallon, business dropped off. now it is coming back. >> thank you so much.

back to you. farming in california -- much of the nation's buskproduce comes m here. bill: thank you. our series of road to their recovery continues online. the latest stories and news on america's own recovery, foxnews.com. in a moment, a model murdered. a person of interest is now on the run, a former reality tv show. megyn: and take a look at this photograph. she ran pretty darn fast. in fact, so far away, she caught the attention of authorities who want to know if she is really a woman.

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call liberty. they can help you live a better life. call the number on your screen. bill: if you were with us earlier, you watch a terrorist being set free from scotland. he was sentenced to a minimum of 27 years for his role in the bombing of pan am flight 103. about 280 killed, including crewmembers on board. this is a different angle that we are seeing from sky news. that is megrahi, 57 years old, in diagnosed with terminal cancer. the other angle that we had was quite a distance away.

clearly, he is covering his face. had to our website. you can get more information on that story. also on line, take ourç poll. we are asking whether or not you believe he should be released. right now more than 200 people have voted and 68% say no. foxnews.com. çmegyn: kelly's court is back n session. on the docket, one of the world's fastest female turning track and field into a walk on the wild side. caster semenya burst on the scene this weekend. she dominated the 800 meter women's sprint, at just 18 years old. the same day, league officials

demanded a gender verification test involving five doctors and several weeks of testing. her father says that she is his daughter, but if she is a he, do the victories count? good morning, the panel. that was unexpected. çshe is only 18. she is really dominating the race. then someone said, you look like a man. çnow, the gender verification test. arthur, are they all ? -- out of line? >> everyone behind her was millisecond the part, but caster

semenya won by 2.4 seconds. what really drives you crazy is her coach a statement. -- her coach's statement. we entered her as a woman, and one to keep her that way. come on. just drop your pants in front of day woman. [laughter] megyn: just so people know, there is anç endocrinologist, a psychologist, a gender expert. could any third grader tell you if she was a man or woman? >>ç please, this is outrageous. they can certainly do it in a way that is not so interested, but to have five several -- separate doctors through several

weeks? i am going to challenge them, if she was a man, when we already know this? what is the message to all of these great female athletes? you cannot run as fast as a man and cannot be as muscular as one? megyn: if she is not a man, and they are going to have some explaining to do. she may look max glenn -- masculine, but a lot of time these super athletes do become androgynous. they lose fat in their body, and their breasts. that does not mean that she is not a woman. >> in need to be checked out. in fairness. men are physically superior in these types of events. i do nothing that is a sexist statement.

the way she isç running -- we e going to go with that pronoun -- it is not of demand. her times are indicative of a man. it is not fair to these women çwho have trained their whole lives to run this race if they are running against a man. megyn: no one has used the term hermaphrodite. that is when you have both sex organs. it is a rare genetic defect. when they are saying is she might suffer from a rare condition where individuals can exhibit both male and female chromosomes. could that explain all the testing? maybe they looked at the body, and it was ambiguous, and now they need to look at the chromosomes. if we need to do that, can't we just take her word for what she is?

>> she has identified herself as a woman. she has existed in her community as a woman. in fact, this case is similar to renee richards, çthe famous tennis player. she can play on the women's team. they could not even test heard during the transition phase. there is a case out there that saysç if there is someone with this ambiguity, they should not be tested because it is discriminatory. megyn: the olympic committee claims that they need to compete in the gender that they were at their birth. >> even if she has this rare condition, it is not fair that she is competing against other people who do not have the ability. perhaps she has something that

is making her better than everyone else. megyn: i have to interrupt. we are coming up against a cordial break. i have no idea what they should do. . . new chevy equinox. with an epa estimated 32 miles per gallon. and up to 600 miles between fill ups. it's the most fuel efficient crossover on the highway. better than honda cr-v, toyota rav4 and even the ford escape hybrid. the all new chevy equinox. ♪ bicycle, what are we waiting for? the flowers are blooming. the air is sweet. and zyrtec® starts... relieving my allergies... 2 hours faster than claritin®.

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>> why don't you push the pressure against the other insurance companies to provide better insurance? [applause] don't bargain with this government, because it lies. [applause] bill: anger boiling over not only in town hall meetings, but now the yard during a rp meetings.

-- now they are doing a rp meetings. juan williams is here. good morning. is she a she or she a he, by the way? megyn: [laughter] >> in your condition, we cannot -- megyn: what do you think? a woman or a man? >> she looks like a guy in the face to me. bill: i think the results either way are a fox news alert. what do you think of this strategy? what are the consequences? democrats failed to give any republicans the vote for it, but some conservative democrats will not go along, either.

>> right. if you look at what has been happening in the white house over the last weeks, it has been a three ring circus. you have people doing backflips, the public option, and the minute the wind blows one way or another, the white house tries to accommodate it. they have a conservative talk radio side, and you have people like nancy pelosi, howard dean, chris dodd saying that you need the public option. they have an argument of needing enough democrats under the tent to do it, and that is what you get. are they willing to lose a couple of democrats, do it with 50 votes in a way that would -- i do not think anybody interested in the idea that a bipartisan solution or one

americans do not want to see it, because this will be portrayed as being pushed on the american people. bill: you know doug, are democratic consultant. he says this is out of hand. >> that is a problem for president obama. he has to get it under control. republicans have a solid vote. the problem with democrats this time is trying to control a political circus right now. bill: do not move. we are waiting for the latest headlines at of south africa. megyn: foxnews.com.

man, woman? what do they do? bill: the results are fascinating. wly ) ( whooshing, riders cheering )

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