$3.5 million in hush money to an unnamed person from the illinois town where he was a long-time high school teacher and wrestling coach. the indictment alleges that the money was paid to conceal hastert's, quote, prior misconduct. pete williams joins us live from washington. as you well know pete people really surprised, even stunned by this news yesterday. it came out of no it seems. >> it did. he was well regarded in washington always considered very upright, a boy scout. this is very surprising. and of course we don't know what this prior misconduct was, or whether it was a krip. the grand jury indictment raises these two questions who does the government claim the former speaker was paying and what exactly was the past misconduct that a grand jury says was worth millions to keep quiet? the charges were filed against dennis hastert now 73 who was speaker of the u.s. house of representatives from 1999 to

2007. capping a quarter century in public life. prosecutors say the charges involve payments to someone from yorkville, illinois where hastert was a high school teacher and wrestling coach during the mid-1960s and '70s, a point of pride when he became speaker. >> as a classroom teacher and a coach, i learned the value of brevity. >> reporter: court documents say four years ago he agreed to pay 3.5 million in apparent hush money to that person from yorkville identified only as individual "a." someone who has known half theest foremost of that person's life, the government says. the documents say hastert agreed to make the payments quote, to compensate for and conceal his prior misconduct against individual "a" that occurred years earlier. the documents do not say whether individual "a" is a man or a woman. or what the misconduct was. prosecutors say hastert paid until $2 million, withdrawing money from his accounts $50,000 at a time but cut that back to less than $10,000 at a time to

illegally evade federal bank transaction rules. the indictment says when asked about the withdrawals, he lied to the fbi, saying he didn't feel the banking system was safe and, quote, i kept the cash. that's what i'm doing. >> this indictment was shocking, not only because who it involved, denny hastert, but that the investigation had been a secret. >> there's been no response to these charges from hastert himself. a spokesman for the lobby firm here in washington where he's been working says hastert has resigned. court documents now say he's been released on his own recog that nizance. he'll make his first court appearance next week in chicago. let me bring in "chicago sun-times" washington bureau chief lynn sweet. she's covered chicago and politics for many years. thank you for joining us. >> good morning. >> the former house speaker has

not commented on this indictment. does that surprise you and is he the type of person who will eventually come out and face this? >> well, i think he was camera shy when he was at the top of his power. den one to make the sunday shows, never one to do a lot of press conferences. i would think in these extraordinary difficult circumstances i would be shocked out if he came out and publicly made any statement right now. >> we know as pete reported he's resigned from his job at that lobbying firm. what do we know about his reputation for the years of being a wrestling coach and teacher? it seems if you look at the indictment, these allegations, time line-wise would have happened around those years. >> yes. he also resigned yesterday from a position he had with the cme corps, the company, the umbrella over the chicago mercantile exchange and the board of trade. the indictment starts out with mentioning that he was a high school coach and teacher.

so that leads us only logically, because of if it's in there, it must be important, to conclude tamron, that this misconduct occurred even before he started his career in local politics. so as pete mentioned, it's a big mystery. who is individual "a"? we don't know if it's a man or a woman. >> pete pointed out that for the most part denny hastert and we both lived in illinois was seen as a quote, unquote, boy scout, an up and up individual. however, you well know in 2006 the sunlight foundation accused him of pushing for federal funding for a highway in northeastern illinois that helped him and his wife profit off selling the land near their home. it was a part of a "60 minutes" profile questioning how some lawmakers eventually leave office and, in his case was a wrestling coach with a modest income and suddenly a millionaire. >> well what's interesting, i did a piece of that story back

in the day, i don't think that necessarily is the clue to the riches that denny hastert now had where he was able to make these enormous cash withdrawals. he was always seen as having real estate. that doesn't give you the liquidity that he clearly had to make 952,000 or whereabouts, that's what the indictment charges, although it called for paying the alleged blackmailer -- >> individual "a." >> individual "a," an alleged 3 million. i think the money has came after he left congress to the degree he had and had a successful lobbying career. >> obviously if someone is agreeing to pay $3.5 million, one would assume that that is the money they plan to bring in at some point in their career

occupation. >> he was taking -- and he was taking this out at first in chunks of $50,000 and when the banks noticed, in ten. >> not a lot of people can do that even people with wealth. >> absolutely. >> we'll see what he says if he does come out publicly and say more about this indictment. thank you very much lynn. great pleasure. developing now on capitol hill the clock is ticking on key provisions of the patriot act vet to expire sunday at midnight. the senate is planning to return to d.c. for a rare sunday session to try to reauthorize a number of government surveillance programs newing the nsa's bulk collection of phone data. in the meantime the white house says it's already started winding down the nsa program but warns that letting the surveillance powers lapse is a threat to national security. joining me now, nbc news capitol hill correspondent luke russert. luke, if we can, let's fast forward a bit to what could happen sunday. >> well you're starting to hear these sort of warnings from the administration, tamron that any

lapse in these programs could prove significant, because once the plug is pulled from them what the white house and other officials are saying is that seasonally it will take four days for them to be back up and rebooted. this all comes down to a fight on capitol hill. a few weeks ago the house passed a bill with 338 votes and a bipartisan manner it was an edward snowden inspired bill that got rid of the nsa's ability to collect bulk data. it went back to an old system that seasonally the phone companies would have to do that themselves and the government would have to get a warn to the access those. that was stopped by misch mcconnell who thought that was too extreme of a change. he thought he could play his hand and perhaps get some of the old measures kept intact. he was not able to pull that off. and then in the middle of all this rand paul somewhat spurred by his desire to make this an issue in his presidential campaign held a filibuster saying that he does not want the house bill to pass. he does not want any of mitch

mcconnell's compromises to pass. he wants to get rid of bulk data collection. number one, can mitch mcconnell get this through if he wants to? if not, what can he do? number two, what role does rand paul play? our nbc news producer frank thorpe said from aides he spoke to rand paul in theory if he played every parliamentary procedural trick up his sleeve could drag this out until thursday. the administration will say if these programs are dead till thursday, that's a huge lapse in security. something to keep your eye on. anytime you get these guys back on sunday, they tend to move quickly. they hate being in early. >> you mentioned what strategy might be pursued by senator paul. it's factored into the presidential election policy. i want to play what jeb bush and scott walker both said in response to the expiration of the patriot act. let's play it. >> islamic terrorism wants to

destroy western civilization, plain and simple. we need to protect the homeland which means we need to re-authorize the patriot act for sure. >> we need to have a responsible way that is legal and constitutional but a way that we can make sure if someone is an enemy combatant or aligned with the enemy combatant of the united states and the people of this great country we have to have the tools we need to prevent another act from happening. >> you hear the sound bites. you wonder how at the gop debates rand paul will get value of where he's standing now, particularly amongst the base. >> what he's trying to do tamron is grow the electorate. he has his father's supporters who were libertarian. he's going after new voters, people fed up with both parties. there were a lot of people that were fed up that did not like these programs. he's trying to get them in new hampshire. if you're a democrat in new hampshire, you can vote in the democratic primary. it is fascinating.

you talk about debate stage. you have jeb bush and scott walker who are subdued in talking about this and being krit kalg of rand paul. you have lindsey graham peter king of new york. the sole reason they're getting into this race is to talk about issues like this of national security. rand paul is going to be alone on an island on a debate stage like this. will that gamble pay off by getting new vote he's or does it alienate the primary voters he could get. >> that's the question. we'll see. have a great weekend, luke. >> you too. take care. flood alerts up from south texas to central missouri. as much as 7 inches of rain fell in the dallas area forcing dozens of people to be rescued. at least six vehicles were trapped in high waters when they tried to drive under this dallas overpass. no one was injured thankfully. fire officials say they receive more than 250 calls from people who were trapped in flooding. or involved in accidents. joining me now from dallas the

weather channel's dave malkoff. dave let's see what's happening behind you. what can they expect over the weekend? >> tamron let me start off by showing you this. this is about 8 inches of water, about 8 inches. let me just explain what this is. since 35 trillion gallons of water have fallen over texas in the month of may, this is how much water would cover the entire state. if all that water covered every square inch of that state it would be 8 inches deep. that's an amazing amount of water. in fact the most amount of water that's fallen in texas in may. here's the reason why i'm standing over this overpass. last night this water came down so fast that all of that overpass was covered in water up to that high water line. you can see right there. as these cars go through, you can see the water was above the cars at least six were trapped down here. the most swift water rescues in

the last five years around the dallas-ft. worth area happened last night. including sam hawn he was inside his brand new bmw when it got swept away by the water. >> i just rolled down the window and get up on top of my car and the water keep rising up. it hit above my knee and i decided to take off my suit and swim across and go out. >> wow. just one rescue story that happened last night amongest lots of rescue stories, including tamron a police officer who actually got swept away in the water about an hour away from here. he was trying to rescue people and he became the rescuee. >> dave thank you very much. tough times there for that part of the country. now to breaking news we just received in. the state department just announced cuba has been formally

removed from the list of state sponsors of terrorism. the decision is effective immediately and the removal of cuba from the list eliminates an obstacle towards restoring diplomatic ties between the united states and cuba after 54 years. and also developing now, we are hearing from james holmes the aurora movie theater shooter in his own words for the very first time. >> they're collateral damage. >> 22 hours of recordings from a session with his psychiatrist. now being played in court. we'll have a live report next. plus a controversial essay written by senator bernie sanders in the '70s has now surfaced. the essay is about women and rape. what the presidential candidate is saying now. and for the first time, people will be allowed inside the observatory at one world trade center.

we'll take you there live. join the conversation online find the team on twitter twitter @newsnation and you can find me on facebook twitter and instagram under my name. we'll be right back. when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure.

do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. many wrinkle creams come with high hopes, but hope... doesn't work on wrinkles. clinically proven neutrogena® rapid wrinkle repair with the fastest retinol formula available, it works on fine lines and even deep wrinkles. you'll see younger looking skin in just one week. stop hoping for results, and start seeing them. rapid wrinkle repair... ...and for dark spots rapid tone repair. from neutrogena®. he says she's an undisciplined overwaterer. she claims he's a cruel underwaterer. with miracle-gro moisture control potting mix,

plants only get water when they need it. fight ended. or shifted? miracle-gro. life starts here.

for the first time jurors and the public were able to hear from the admitted gunman in the deadly shooting of the aurora colorado movie theater in 2012. james holmes is on trial for killing 12 people and wounding 70 others. a state-appointed psychiatrist conducted a sanity evaluation with holmes two years after the shooting. yesterday the prosecution began presenting that videotaped evaluation to the jury. jacob, we're talking about some 20 plus hours of an interview

there. >> this new evidence is part of a shift of the trial already. we've heard more from than 100 witnesses, more than 2,000 pieces of evidence. we get into the crux of the trial, the heart of the case into the mentality of the shooter. >> i only count fatalities. >> what about the wounded? >> they're collateral damage. >> reporter: james holmes sat almost motion l, showing no emotion. psychiatrist william reid who conducted the mental evaluation last year testified holmes was mentally ill but legally sane. >> that the defendant james eagan holmes the definition of legal sanity? >> yes. >> what brings tears to your eyes sometimes? >> just regrets. >> regrets about? >> about the shooting. >> there's gunshots. >> reporter: defense attorneys have admitted that holmes carried out the attack but argued he was in the grips of a

sycosis, his own diary revealed for the first time in court details his philosophy on life and death, good and evil followed by eight pages of the word why repeated over and over. then what he calls a self-diagnosis of a broken mind scribbles about schizophrenia and other illnesses. finally, the plot page after page of diagrams alternate venues methods, airport, biological warfare, serial murder writing the obsession to kill since i was a kid, with age became more and more realistic and finally, the last escape mass murder at the movies. later today, the psychiatrist you heard from in the piece will take the stand again. he's going to testify for several days of court and then another psychiatrist expected to say that holmes was legally sane but the defense's mental health expert is expected to disagree. tamron? >> thank you very much. developing right now, fifa is voting on who will lead soccer's international governor body. while it's now involved in that huge corruption scandal.

a live report is next. plus the duggar family they've campaigned along rick santorum in the past. what the presidential candidate is saying about the family's child molestation scandal. it's one of the things we thought you should know today. plus, in the wake of "the new york times" bombshell report on dangerous working conditions and low wages in america's nail salons, i'll talk live with a salon owner who says businesses do not have to be run that way. and how he is doing things differently. it is today's born in the usa. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your

confident retirement today. you are looking at two airplane fuel gauges. can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids. so you see, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized. hi, i'm henry winkler and i'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now

to receive your free dvd and booklet with no obligation. it answers questions like... how a reverse mortgage works how much you qualify for the ways to receive your money... and more. plus, when you call now, you'll get this magnifier with led light absolutely free! when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments and give you tax-free cash from the equity in your home and here's the best part... you still own your home. take control of your retirement today! hey america, still not sure whether to stay or go to your people? ♪ well this summer, stay with choice hotels twice and get a $50 gift card you can use for just about anything.

go you always have a choice. book now at choicehotels.com ♪ the new, twenty-fifteen ford focus believes in "more." more to see. more to feel. ♪ more to make things really, really... ...interesting. see your local ford dealer today for great lease offers on the new 2015 ford focus. or visit ford.com developing right now, fifa soccer's world government body is voting as we speak on the future right now. its next president. amid the corruption scandal, embattled president sepp blatter is expected to be elected to an

unprecedented fifth term. he's getting support from russian president vladimir putin after the u.s. indicted 14 fifa officials and sports marketing executives for allegedly pocketing $150 million in bribes and kickbacks. putin is accusing the u.s. of meddling and trying to ruin russia's hosting of the 2015 world cup. bill neely joins us live from london where he's been watching the developments there. and, bill i think that people expected the vote to go this way for blatter but that does not necessarily take him off the hook for possible charges, perhaps in the future even. >> no it doesn't take him off the hook for anything indeed the justice department the fbi made very clear at the end of that extraordinary news conference on wednesday that this was only the beginning. but for now, the voting in the presidential election of fifa has begun, 209 countries casting their ballots.

it is almost certain in a couple of hours time that governing body that runs world soccer will re-elect sepp blatter as their president for a fifth term as if nothing had ever happened. sepp blatter who is 79 was the firm favorite before the fbi accused his organization of rampant corruption. today, give or take just a few votes, he will be given a vote of confidence to begin until he is 83. how on earth does this happen? well, a few countries have changed their vote since the u.s. allegations, new zealand, for example. but the one thing in fifa that is not corrupt is that every country is equal and most countries have not changed their vote. so, for example, the vote of the u.s. against blatter will count just the same as the vote of andorra or mali. almost all of asia south america will vote for blatter.

vladimir putin said yesterday, hey, this is all an important plt to expand u.s. jurisdiction and get rid of sepp blatter. the caribbean will vote for blatter. almost certainly in a couple hour's time he will be re-elected. >> bill i have to ask you, fifa's sponsors like visa, nike, adidas coke mcdonald's, anheuser-busch are all concerned. what kind of impact does that sponsorship having or the questions being raised by the sponsors having on the governor body? >> yes. these guys they are almost all middle-age or elderly men. they can vote for sepp blatter but next come the consequences. as you say, visa the company that sponsors the world cup, they said if fifa didn't reform immediately, it would re-assess its sponsorship. many other sponsors hinting at the same thing, coca-cola,

adidas and others. this could cost those delegates dearly indeed. they can re-elect blatter but if there isn't change the sponsors simply don't want to be associated with this stench of corruption. >> stench it is. thank you so much bill. great pleasure having you on. thank you. coming up, the faa is looking for the person or persons who pointed lasers at several passenger planes a move that could briefly blind the pilot. it is one of the stories we are following and updating around the "news nation." and this -- >> i think rand paul should be a leading contender for the democratic nomination for president. >> why republican congressman peter king says presidential candidate rand paul does not belong in the gop. this comes as king says he is considering his own white house bid. that's next in today's "first read." e a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business

today with legalzoom. guys, it's just the two of you. the setting is just right. but here's the thing, about half of men over 40 have some degree of erectile dysfunction. well, viagra helps guys with ed get and keep an erection. and you only take it when you need it. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. ask your doctor about viagra.

♪ if you're looking for a car that drives you... ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. we are back with this morning's "first read" on

politics. senator bernie sanders is distancing himself from an essay that he wrote in the '70s on women and rape. republican congressman peter king has tough words for rand paul. and former maryland governor martin o'malley is expected to announce his candidacy for president tomorrow in baltimore. first, here's a look back at the week in politics. >> i am proud to announce my candidacy for president of the united states of america! >> i am running for president of the united states. >> this morning, i announce i am a candidate for the republican nomination for president of the united states. >> isis is all over libya because the same hawks in my party loved hillary clinton in libya. they wanted more of it. >> i would expect to hear that from maybe bernie sanders. i don't expect to hear that from someone running for the republican nomination. >> we'll have to stand up to the people who want to keep the deck stacked in favor of those at the

top. >> both hillary and bill clinton are being trailed by questions over money, that bill clinton had a shell company, wjc, llc, in which money could pass unreported. >> what are you done? are you trustworthy? are you transparent? will you answer questions? >> here to answer some of your questions, nbc news senior political editor mark murray. thank you so much for joining us. let's start with senator sanders. this essay was written in 1972 when an alternative weekly newspaper called "the vermont friedman." it's hard to explain anyone writing it then now, at any point? >> the explanation was that this is satire. when you read it it seems bizarre and weird. tamron, the bigger takeaway this is the big leagues when you start running for the presidency. anything you might have written in college, high school you said you were doing for satire becomes public. when he was run for the united

states senate for the first time these things didn't come out. it shows the wlefl of scrutiny that even someone like bernie sanders gets when you run for president. >> i absolutely. we were just talking, i believe it was yesterday, on how he does not and no one really expects him to win the nomination, however, he is a formidable challenger and he can push hillary clinton to the left. if he's spending time defending what he wrote which was in part a woman enjoys intercourse with a man while she fan the sizes about being raped by three men simultaneously. this takes up a lot of oxygen. >> you almost need to -- once you read it the satire i don't know if that defense ends up holding all that much. it will be interesting to see what bernie sanders himself says beyond his campaign. >> everything matters, even what happened in the '70s. >> yes. >> peter king slams rand paul. he has it out for rand paul. talk about someone who will be a

nemesis, especially if he jumps in the race. here's what he said on "andrea mitchell reports." >> i think rand paul should be a contender for republican nomination for president. this is the anti-bush, anti-republican type of propaganda that's been spewed over the years. rand paul does not belong in the republican party when he carries that message. >> is congressman king any type of threat to rand paul? >> i don't know if he's a threat. this was always going to be rand paul's biggest challenge as well as what makes him different, makes him stand out in the republican field. we always knew that foreign policy was going to be the issue. he would pick fights with fellow republicans and fellow republicans would pick fights with him. the republican party created isis peter king jumps on this lindsey graham will be someone who does the same. later on marco rubio. this is going to be one of the best fights in the republican primary season. >> speaking of another fight potentially, governor martin o'malley announcing that he plans to run and he's taken a

few swipes already at hillary clinton in the past. >> yes. and actually it's interesting attack where they're going after, he's the candidate of the new generation, he's young, maybe the ensin situation that hillary clinton is a little bit old, that might be dangerous terrain for martin o'malley. right now his biggest challenge isn't hillary clinton. it's bernie sanders. he needs to be able to get into the next tier. right now the person who's standing between him and hillary clinton is bernie sanders right now. >> was it the o'malley team who put out -- i guess there was a clip of bill clinton saying martin o'malley could be president in the future. did you see that. >> i didn't see that. it will be interesting to see if that gets blow back once there's more scrutiny and is this something republicans will pursue in the general election if hillary clinton becomes the nominee. >> very interesting, mark. have a great weekend. good to have you in new york. >> great to be here. coming up, following a

scathing report describing nature mare nightmarish conditions, the owner of a nail salon says this does not have to be the way it's done. he'll join us live to tell us how he's doing things different lip. it's today's "born in the usa." plus we take you to the observatory at one world trade center that opened to the public just a few hours ago. a live report of that beautiful view is next. h your diet, excercise... and may take an omega-3 supplement, such as fish oil. but when it comes to omega-3s, it's the epa and dha that really matter for heart health. not all omega-3 supplements are the same. introducing bayer pro ultra omega-3 from the heart health experts at bayer. with two times the concentration of epa and dha as the leading omega-3 supplement. plus, it's the only brand with progel technology proven to reduce fish burps. new bayer pro ultra omega-3.

♪ take me into your darkest hour ♪ ♪ and i'll never desert you ♪ ♪ i'll stand by you ♪ yeaaaah! yeah. so that's our loyalty program. you're automatically enrolled, and the longer you stay, the more rewards you get. great! oh! ♪ i'll stand by you ♪ ♪ won't let nobody hurt you ♪ isn't there a simpler way to explain the loyalty program? yes. standing by you from day one. now, that's progressive. put your hand over your heart. is it beating? good!

then my nutrition heart health mix is for you. it's a wholesome blend of peanuts, pecans and other delicious nuts specially mixed for people with hearts. i said people with hearts. because hearts health is important. that's why i've researched optimized and packaged this mix just for you. not you. so if you have a heart start optimizing your nutrition with my nutrition. planters. nutrition starts with nut. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money.

it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. new york's governor introduced legislation aimed at protecting nail salon workers after a stunning "new york times" report revealed widespread abuses in the manhattan area. the paper says it found many salon owners charging new employees a fee to work there. forcing some new hires to work temporarily for tips only. if they did receive a steady wage, most employees claim they were paid just $30, maybe $40 a day.

one woman said she frequently earned about $200 for each 66-hour workweek at a $3 an hour rate. in sandal season if she was lucky she left the shot with slightly more $300 each week. on snowy days she would return home with nothing. many owners defended their operation saying it was the only way they could stay afloat. but one of the co-founders of mini luxe a nail and wax franchise says he applauds the times for its investigation. mini luxe was founded eight years ago by a team who decided it was time to reshape the nail industry to focus in not only on high quality and low prices but employees and they how are treated as well. they did it by using what they refer to as the starbucks model. tony chan joins me now. he's the co-founder of mini luxe. >> great to see you. >> let's start off with your reaction to this "new york times." it was a series an expose.

in many times it was hard to read and embarrassing to read as someone who has gone in a nail salon and look for granted how some of the women, many of the women were treated. >> well tamron i think part of the essay that was revealing was on the labor side. many of us who have been through a nail salon should find it not surprising when you're finding $10 for a service and look around you, smell the fumes, look at the environment probably isn't surprising that something is not above board. our reaction to it was one that thank god someone has brought this to the light and is shining a light on it. >> before you describe the concept, why do you believe the nail industry we could focus on many industries quite honestly but especially the nail industry seems right for the condition to expolite their workers. >> we have 18 million independent workers. it's not just the nail industry. there are people in the restaurant industry people who

are caregivers and who have been in the transport and service cleaning industry. i think in general, being a first generation immigrant myself i've seen this firsthand where it's just too easy. people are coming in. they have a strong work ethic, they did desperation and a need to mac a liveke a living. people exolympiadploit that need. >> here you are with your company and you are crashing the system, saying this does not have to be the norm. it does not have to be the standard. you're using a starbucks model. describe to me how that works. >> i think the key element whether it's a starbucks or a chipotle is trying to change and transform the way people think about an industry. for us when we first started this it wasn't again hard to see we had to have better hygiene, healthy and a better environment. when you go around and poll the hundreds of women, it's largely women who get the services

hygiene and safety was the number one concern. like many businesses we realize it's all about people. what you have to do is start with the employees. if you can give the employees a sense of independence development, care and pride in their craft, that's really the beauty of this strae. it's something that is such a great benefit of having now close to 300 employees as part of our company. >> how did you tackle the compensation? yes, health is prorn. in the end you're not able to feed your family after working so many hours, it means nothing. >> for us we pay more. i mean even through the training process, no one makes less than minimum wage. we give 100% of the tips back. you just mentioned earlier on on the show that there are some people that ask for the equivalent of key money to give money to work in a place. how absurd is that. we give referral bonuses for any technician referring another worker. part of what we have to do is actually build the trust with this employee base. they have been so abused over

the decades we have about 400,000 nail technicians in this country, that it's hard to build trust and make them believe there can be a better place. we bay them more and try to give them a real career path. >> how are you able to keep the costs down for the consumers who walk through the door? >> we charge a premium. it's $19 for a manicure. i think we use big data. we use data to try to match supply and demand. we try to be more efficient, staff better and offer better products that customers are willing to pay pore. >> people are willing to pay if they know the workers are being treated properly. >> we're in a movement of conscious consumerism. i hope it goes well beyond nails. >> i hope you're right. i think you're right. thank you very much. >> thank you. >> thank you so much. today in new york an important milestone for americans almost 14 years after 9/11. the observation or observatory at the one world trade center officially opened its doors today. it offers visitors a bird's-eye

view of new york city from the tallest building in the western hemisphere. the observatory's motto, see forever. nbc's rod allen joins us for today's big opening. first, it looks amazing behind you. what is it like to be there? >> it's absolutely stunning tamron. it's an amazing thing. and you see forever. look, this is new york city. up the hudson river you can see the empire state building you can see 30 rockefeller center. you can see everything. brooklyn. >> wow. >> you can see about 50 miles north and south, connecticut and parts of new jersey, obviously. it's just amazing. the beginning of the experience is a ride up an elevator that comes up 102 floors in about 48 seconds. not quite sure how fast that is. it felt extraordinarily fast. there's a video show that shows the history of how new york developed over the last 500 years. while you can see forever, they say in their motto, you want to

stay for the experience. there are a lot of interactive things going on that highlight the best aspects of new york and show the history of new york as well. there's all that as well. it's actually pretty accessible. the tickets are a bit expensive. it's $32 for an adult, $26 for children, 30 for seniors. if you're a 9/11 family or you're involved in the rescue and recovery efforts, you can come for free which is of course a very nice thing, something you'd expect. but the bottom line is it's a wonderful experience incredible to be up here. having seen how this has all happened over the last 14 years or so it's even more remarkable to think we're here now given where we were so long ago. stunning views and absolutely incredible place to be. tamron? >> today we have clear weather. you can see, this is so beautiful. i could look at this all day long. it's an absolutely perfect moment in that we have clear weather today so you can really feel and the moment is captured. wow.

what a lucky assignment you have there today. it's beautiful. thank you very much ron. coming up is it time to table tipping? you may get into a debate over gratuity with your friends and family after you enjoy a nice meal together. is it an archaic custom? that's how one person refers to it one writer. he says yes. we'll tell you what he thinks is the better option and it is today's "news nation" gut check. and sometimes i struggle to sleep at night, and stay awake during the day. this is called non-24. learn more by calling 844-824-2424. or visit your24info.com.

♪ want to survive a crazy busy day? start with a positive attitude... and positively radiant skin. aveeno® positively radiant moisturizer... with active naturals® soy. one of nature's most effective skin tone correctors. to help reduce the look of brown spots in just four weeks. it's positively brilliant. aveeno®. naturally beautiful results®.

rr e. the faa and new york state park police are working to track down whoever pointed green lasers at four passenger planes last night. that tops our look at stories around the news nation. according to the faa, the planes were flying about 8,000 feet when the potentially blinding lasers were pointed at the cockpit. this is the latest in a series of laser incidents with

passenger planes. a volcano in japan erupted. the 140 people who live there were ordered to evacuate. the japanese prime minister says they will do everything they can to make sure the islanders are safe. it's almost summer and there is still snow in boston. that black stuff? that's snow. it has been reduced to this pile of trash and dirt that is coated in ice. officials say this mound will be around for a few weeks. and for the second time in a the scripps national spelling bee ended in a tie between gokul and vanya. listen to how the champs described their big night. >> i think it's great to be a

co-champ. more people got an opportunity to win and less hearts were broken. i think it's a great opportunity. >> it was really like fun to win at the end but the whole competition was really great and i had a lot of fun. >> fun indeed. both will take home $36,000 each and a dictionary. each made a little history. gokul finished third. vanya, this is her fifth bee and her sister won in 2009. what's in that family? time now for a news nation gut check. the news nation is here. maybe a little dining out and at the end of the meal comes the check. how much do you tip? how about nothing? it notes americans borrowed who went out and largely abandoned

it. it never caught on in asia or other parts of the world. my guest examines the issue in a recent article. >> i don't know about this. if i was a waitress for 11 days. the hardest job of my life. the only job i didn't give a notice to because i just walked out the door. harder than anything i have ever done. not being tipped. i don't know how i feel about that. what's the argument? >> i'm not suggesting in anyway shape or form we should not tip. i just suggested to shift from a tipping model to a fixed wage model. as you're a tipper you had no idea when you were working for that restaurant whether you would have a high or low wage day. it was up to your customer's discretion. you could have gone in and earned a lot or a little money.

it was up to your customers. if we switched to a fixed price and wage model, a lot of groups would be better off. >> you're saying that the service is included? some restaurants in miami, they have included service in the bill kind of going along with the european model. is that what you're saying? >> we could do the european model. i was suggesting the asian model. everything is built into the price. when you look at a price for a sandwich or a bottle of wine the service charge is already bimt in. there is no extra 20 or 10%. it's there. you may get 15 20 $50 an hour. whatever it is it's a fixed wage. >> so the argument will be okay. so jay's deli on this side of

town, you charge extra because you want to eliminate the idea of a tip and you put the cost in the price of your sandwich and the guy across the street doesn't and people will eventually probably not go your place of business. that's the argument that is lot of folks have had. and people don't want to pay more. >> i understand that's an argument but most of us are sophisticated enough to understand that you will have to add something to the bill when a tip is expected and that's not necessarily good for the customer or the service. the server has no idea if you're going be a big or little tipper especially since it comes at the end. if you could signallerly on that you're a big tipper that might improve service. but there has been a dozen academic articles that have looked at the relationship between service quality and how much people tip and they found almost no relationship.

so you have an above average experience, below average experience you will tip roughly the same amount. some people are big tippers and some are little. the quality of service generally does not affect how much you tip. now if you have an exceptional experience or an exceptionally bad experience you may change the number in the back of your head. >> it's an interesting conversation. you're not saying don't tip. you're saying let's put it into the cost of whatever item you're ordering off of the menu so people are not left to guess what they're walking home with. great pleasure having you on. >> have a wonderful day. >> what is your gut telling you. should restaurants eliminate tips and include knit the price of the item? that does it for this edition of

news nation. have a wonderful weekend. we will be back here in r on monday. andrea mitchell reports is up next. making a fist something we do to show resolve. to defend ourselves. to declare victory. so cvs health provides expert support and vital medicines. at our infusion centers or in patients homes. we help them fight the good fight. cvs health, because health is everything. so if you have a flat tire dead battery need a tow or lock your keys in the car, geico's emergency roadside assistance is there 24/7. oh dear, i got a flat tire. hmmm. uh... yeah, can you find a take where it's a bit more dramatic on that last line, yeah? yeah i got it right here. someone help me!!! i have a flat tire!!! well it's good... good for me. what do you think? geico. fifteen minutes

could save you fifteen percent or more on car insurance. it's the final days of the ford ecoboost challenge. here we go! last chance to save big on ford, and get our best deals of the season. fusion is rockin' it man. i prefer without a doubt the escape over the cr-v. what doesn't this truck do? but these great deals end soon so act fast and don't miss out. do you want to take my trade-in right now? hurry to the final days of the ecoboost challenge. and get an escape with 0% financing for 60 months plus $750 cash if you own a ford or qualifying competitive vehicle. ortho bug b gon gives you season-long control of all these types of bugs. spectracide gives you season-long control... of just ants. their label says so. bugged by more than ants? get ortho bug b gon. the label tells the story. ortho home defense gives you year long control of all these household bugs - roaches, ants, and spiders. spectracide gives you year long control... of just roaches.

their label says so. got more than roaches moving in? get home defense. the label tells the story. right now, verizon is offering unlimited talk and text. plus 10 gigs of shareable data. yeah, 10 gigantic gigs. for $80 a month. and $15 per line. more data than ever. for more of what you want. on the network that's #1 in speed, call, data, and reliability. so you never have to settle. $80 a month. for 10 gigs. and $15 per line. stop by or visit us online. and save without settling. only on verizon. let's take a look at your credit. >>i know i have a 786 fico score, thanks to all the tools and help on experian.com. so how are we going to sweeten this deal? floor mats... clear coats... >>you're getting warmer... leather seats... >>and this... my wife bought me that. get your credit swagger on. become a member of experian credit tracker and find out your fico score powered by experian.

fico scores are used in 90% of credit decisions. 100 people in dallas pulled from their cars after flash floods hit texas overnight. >> all of the sudden it was dramatic. >> i just rolled down the window and get up on top of my car and the water kept raising up. it was above my knees and i decided to swim across and go up. >> was it hush money? dennis hastard indicted for lying about money. but why? >> as a classroom teacher and coach i learned the value of