tv NBC Nightly News NBC May 23, 2012 7:00pm-7:30pm EDT
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on our broadcast tonight, secret service scandal. a public apology from the man in charge and new revelations what happened in colombia might be an isolated incident. the facebook fiasco. more troubling questions tonight about facebook's debut on wall street. were new share holders kept in the dark? making history. after all that violence we witnessed, why the world is paying attention to one piece of real estate tonight. and what do women want? that racy novel everyone has been talking about and where it's really hard to find these days. plus more tonight on new changes if you're planning on flying with your family this summer. "nightly news" begins now.
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good evening. it's only been a public company since friday and yet tonight, the headlines surrounding facebook are along the lines of what went wrong? the ipo, the initial public offering of facebook stock got a lot of attention. it was breathlessly hyped and while it did make some people rich, it was botched from the start. now some shareholders and remember, there have only been shareholders for four trading days, are suing this newly public company because some have learned that some folks had inside information prior to the sale, and many people now feel a bit hung out to dry by a 28-year-old billionaire and the sprawling social media company he runs. it's where we begin our coverage tonight with nbc's tom costello. >> what happened to facebook, the most anticipated initial public offering or ipo in years.
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>> the odds are stacked against you. if you're not an insider, you're going to be left in the cold. holding the bag. that's exactly what happen said here. >> it's been the talk on wall street. first, an embarrassing nasdaq technical glitch that delayed the ipo, then the stock's performance. opening at $38, popping to $45, and then plunging to there 31. today, closing at $32. all the while, mass confusion as many investors were unable to confirm trades, buy or sell the stock. now allegations that morgan stanley may have informed only its most valuable clients it had a negative view of facebook's growth prospects. leading average investors in the dark. >> if the allegation are true, the s.e.c. has to come in to morgan stanley and demand the heads of everybody who has involved in this deal. >> morgan stanley insists it followed the same procedures for the facebook offering it follows for all ipos.
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already, the lawsuits are mounting. facebook says the suits are without merit and we'll defend ourselves vigorously. today, the senate banking committee began asking questions as massachusetts subpoenaed the morgan stanley's internal documents, all of it, further undermining faith in wall street. >> they believe wall street is a place low on scruples and high on get rich quick schemes that are often at the expense of the mom and pop investor. >> all of this as congress considered tougher oversight of the financial sector. something wall street has been lobbying hard to avoid. tom costello, nbc news, washington. >> let's talk about this more with andrew ross sorkin. author, and co author of nbc's squawk box. he's with us in the studio tonight. correct me if i'm wrong. is this a case of the rich get richer. another advantage to the 1%, mitigated or aggravated perhaps
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by the fact the stock is down from where it came out? >> it would feel this way. this is that and probably more. it couldn't come at a worse time given the enormous distrust the public has of wall street, it goes to this sense of fairness. this is 1% versus 99% all over again. the idea that the playing field is not level, that certain people, certain investors are getting access to information and the other guys, mainstream, isn't getting the same information. and who is holding the bag? the greater fool theory. an ipo, somebody is buying and somebody is selling. in this case, the public is the buyer. in that case, maybe they were the fool in this case. >> in the meantime, the stock price is down. >> exactly. that's the toughest part about it. >> andrew ross sorkin, as always, thank you for stopping by. the world's largest personal computermaker, hewlett-packard, said today it would lay off 27,000 employees. this is going to hurt. that's about 8% of the work force. the company said the reductions
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will save hp as much as $3.5 billion a year. the director of the united states secret service has spoken publicly for the first time since last month's misconduct scandal involving prostitutes in south america. and at hearing on capitol hill today, it was revealed that what happened there may not be the first instance of that kind of misconduct. our justice correspondent pete williams has more. >> director mark sullivan came to apologize for a scandal that has shaken the secret service but insists his agency has no cultural problem. the dozen agents who invited women to their hotel rooms in colom be a he said, did not put anyone in jeopardy. >> none of the 12 individuals had any sensitive security documents. fire arms, radios, or other security related equipment in their hotel rooms. >> but senators were highly skeptical it was an isolated incident. secret service records comtain
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three complaints of inappropriate relationships with foreign nationals since 2007. in the salt lake city olympics in 2002, at least three arjants left after being caught partying with underaged girls. cartagena senator said could not be the only time agents misbehaved. >> this is like a wound to a body. we have to get in it, find out what happened, clean it out, and then let it heal. >> the committee also disclosed that the agents in cartagena actually went out in small groups to several different nightclubs. each bringing back a woman to their hotel rooms which were registered in their own names. >> it strongly suggests that the agents were doing something they felt comfortable about and they had very little fear of their being any consequences for their actions.
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>> as for the secret service culture, sullivan said in a survey last year, 60% of employees said they would report unethical behavior, a figure that struck several committee members as low. >> that's my concern, when you hear the story of what is done on the road stays on the road, my guess is within the service, there's a pretty high level of espirit decor, possibly even a code of silence. >> the secret service director said he's convinced there's no internal april, but committee members said he must assume there is. >> pete williams, pete, thanks. we know more tonight about the midair incident that was our lead story here just last night. the u.s. air flight from paris to charlotte that had to put down in bangor, maine after a woman onboard said she had a device surgically implanted in her body. she's 41, a french citizen from cameroon. in the note she passed to the flight attendants, she said she was a victim of a group of
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doctors and the object in her body was beyond her control. there was no object, it turns out. she's not being charged with anything. instead, she's being turned over to u.s. customs and returned to france. now to a first in the arab world and day that could set the course for egypt for years to come. after all of the violence and revolution we witnessed there for ourselves over a year ago now, this was the day that egyptians went to the polls in a history making presidential election. our chief foreign correspondent richard engle is back in cairo tonight. richard, good evening. >> good evening, brian. what a day it's been. for the last 5,000 years. egypt was ruled by pharaohs and sultans, kings and military commanders. now that's starting to change. egyptians by the million turned out to make history. >> to feel the freedom and to feel that we are human for the first time.
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>> mostly, it was peaceful as voters lined up in cairo to choose from among five leading candidates. a socialist, two islamists with ties to the long banned muslim brotherhood, and two with ties to former president mubarak. it wasn't always certainly this day would come. last year in tahrir square, millions demanded democracy. today, the protesters are gone. instead, tahrir is full of flags and campaign posters, as egyptians are practicing the rights they fought and died in this square to achieve. but the election will be decided in villages like this, outside cairo. many egyptians live in the countryside, mostly in poverty. this is the heartland. like all of egypt, it's divided. it's a choice between continuity and a new direction under islamic leadership that could
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see them turn away from four decades of pro american policy. we saw muslim brotherhood activists helping voters find their names on ballot lists. i support the muslim brotherhood because it has long said that islam is the solution, he says. not everyone agrees. the campaign has been vigorous. mass rallies, televised debates. in the overwhelmingly muslim country, islamic candidates have a big advantage, the pulpit. at a recent campaign event, a cleric rallies the crowd. they cheer, the people want islamic law. that could mean big changes across the middle east. the muslim brotherhood disagrees with u.s. policies here and has threatened to change or even tear up egypt's peace treaty with israel, forged three decades ago by president jimmy carter. but carter, here as an observer, is optimistic.
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>> they know peace forige want and israel is crucial for their poom and their future. they gave me the assurance that the peace agreement with israel would remain in tact. >>ige want is at a cross roads as people here for the first time choose their own future. voting continues tomorrow. no candidate is expected to win an outright majority, so there will likely be a run off next month. brian. >> richard engle, back in cairo for us, richard, thanks, as always. also overseas, pakistan has severely punished a doctor who helped the u.s. find osama bin laden by collecting dna samples during a ruse. what was called a fake vaccination program. he's been sentenced to prison for 33 years for high treason in pakistan. on the presidential campaign trail, back which newt gingrich pledged $2.50 a gallon gasoline, if elected president, he was called out at the time for an unrealistic number. today, some of the same thing happened to mitt romney when he
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made a pledge on unemployment as part of his overall defense of his work at bain capital. our report from the trail tonight from nbc's peter alexander. >> speaking to a room full of latino small business owners, mitt romney blasted the president for in his words, attacking their success. >> it's no wonder so many of his own supporters are calling him to stop the war on job creators. >> vowing to turn around the lagging job market, he made this promise, that he would lower the unemployment rate to 6%. by the end of his first term. and after days of stinging criticism from the obama campaign about romney's record at bain capital -- >> like a vampire. he came in and sucked the life out of us. >> it was like watching an old friend bleed to death. >> romney defended his experience in an interview with "time" magazine. >> having been in the private sector for 25 years giving me a perspective on how jobs are created that someone who has never spent a day in the private sector, like president obama, simply doesn't understand.
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>> to win, he will have to improve his standing among latinos. our new poll shows him trailing the president by a wide margin, 61% to 27%. among what is now the nation's fastest growing group. the romney campaign recently rolled out this spanish speaking ad. >> soy mitt romney. >> and today, he touted his vision for improving education. >> millions of our kids are getting a third-world education. and america's minority children suffer the most. this is the civil rights issue of our era. >> still, barely a quarter of latino voters have a positive opinion of romney. >> governor romney doesn't just have a steep hill to climb. he's got mount everest to climb and he has do that quickly. >> oour poll shows the president faces husband own significant challenge turning out latino voters. many support him but aren't as excited about the election as other americans.
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>> it was revealed today former first lady nancy reagan is recovering from a fall back in march that left her with several broken ribs. she was due an an event at the reagan library last night but could not attend. her spokesman said mrs. reagan is recovering slowly and needs to stick close to home. nancy reagan is an otherwise actest 90 years old. still ahead here on "nightly news" tonight, the young drum major and his college band beaten to death, tonight, what his fellow band members say really happened, and why his anguished parents say that just can't be true. and later, the book that's electrified women across the country and what we're learning about where it's flying off the shelves the fastest. e it's flyi shelves the fastest. 've got... shelves the fastest. some cut-rate policy. [ kyle ] nope, i've got... [ dennis ] ...the allstate value plan. it's their most affordable car insurance -- and you still get an allstate agent. i too have... [ dennis ] ...allstate. [ roger ] same agent and everything. [ kyle ] it's like we're connected. no we're not. yeah, we are.
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no...we're not. ♪ the allstate value plan. dollar for dollar, nobody protects you like allstate. sleep in my contacts. the allstate value plan. relax... air optix® night & day aqua contact lenses are approved for up to 30 days and nights of continuous wear, so it's okay to sleep in them. visit airoptix.com for a free 1-month trial. for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. osteoporosis-related bone fractures and
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low magnesium levels have been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. last season was the gulf's best tourism season in years. in florida we had more suntans... in alabama we had more beautiful blooms... in mississippi we had more good times... in louisiana we had more fun on the water. last season we broke all kinds of records on the gulf. this year we are out to do even better... and now is a great time to start. our beatches are even more relaxing... the fishing's great. so pick your favorite spot on the gulf... and come on down. brought to you by bp and all of us who call the gulf home. last november, the death of a member of florida a&m's famed
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marching band put a spotlight only the little known practice of hazing among big-time marching bands. tonight, there are new details on what happened in the moments leading up to robert champion's death. our report tonight from nbc's kerry sanders. >> florida a&m drum major robert champion was beaten and stomped to death in what the prosecutor called homicide by hazing. in more than 1,500 pages of court documents, the very band members who were at champion's funeral including some of those who escorted his casket claimed in interviews the 26-year-old willingly faced down the band's challenge. >> did anyone try to take him into it or talk him out of it? >> he was wanting to do it all season. he wanted to do it all season. >> boyce is among 11 band members now charged in champion's death, an attack that boyce told detectives spiraled
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out of control. >> i saw people kicking him, so i stopped them from kicking him and i put my body around his body. >> after climbing onto one of nine charter buses, in the witnesses told police in the darkness, champion faced down the so-called cross over, a band initiation in which members endure a gauntlet, stumbling from the front to the back of the bus. he was beaten by other band members. >> he said he couldn't breathe. so i checked hum. he wasn't saying anything. wasn't responsive. >> champion's parents and his lawyer said they're not satisfied with the third degree felony hazing charges. they call this a murder and dismiss any notion their son willingly submitted. >> robert was not violent. he would never do hazing, and for someone to actually say he would, i'm saying no. >> according to the investigation, at least two other band members were also hazed that weekend. they survived their attacks, unlike robert champion. kerry sanders, nbc news, miami.
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up next here tonight, a new travel challenge for families with small children this summer. and last week, he was playing weatherman. wait until you see what a real prince is doing now. now.ce is d. my son and i never missed opening day. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better, and that means... game on! symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. [ whistle ] with copd, i thought i might miss out on my favorite tradition. now symbicort significantly improves my lung function,
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starting within 5 minutes. and that makes a difference in my breathing. today i'm back with my favorite team. ask your doctor about symbicort. i got my first prescription free. call or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help. that make kids happy. and even fewer that make moms happy too. with wholesome noodles and bite sized chicken, nothing brings you together like chicken noodle soup from campbell's. it's amazing what soup can do. like chicken noodle soup from campbell's. when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.
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for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. osteoporosis-related bone fractures and low magnesium levels have been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. she's using more. he's using more. america's appetite for energy is growing. nuclear energy is part of the answer to meet this demand. nuclear energy facilities in 31 states
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already provide reliable and affordable electricity for one in 5 homes and businesses, and nuclear energy is america's largest source of clean air electricity. so nuclear energy can provide made-in-america electricity while protecting the environment. nuclear--clean air energy. we were slaves. we belonged to people. they sell us like they sell horses. >> hard to make out, difficult to understand every word, but that right there is the only time most of us will be able to hear the recorded voish of a former slave at age 101. it's placed in the library of congress national recording registry for audio files, hesry buffs and music fans it's the nation's treasure-trove. among the new music inductions, "i feel love" by donna summer, the theme to charlie brown
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christmas, and rapper's delight. >> attention parents of small children. you know one of the few perks of flying by air with small children, you get to board the plane first with other passengers who might need assistance. not anymore. at least on united airlines. families with small children and diaper bags and car seats and folded up strollers will no longer get most favored united status. they have dropped the perk they say to simplify the boarding process. maybe it's the fact his mom has been on the throne for 60 years and right now, he figures why not, but for whatever reason, prince charles appears to be cutting loose these days. there's no stopping him. he showed up on the bbc news doing weather suddenly. now he's moved on to dj'ing. he was scratching with the kids. while the head phone concept was a bit foreign and his beat matching does need work, even he would admit, the man's always
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had a rather nice flow. up next here tonight, the dirty little secret that's getting harder to find. that's getting harder to find. store different? you walk into a conventional mattress store, it's really not about you. they say, "well, if you wanted a firm bed you can lie on one of those. if you want a soft bed you can lie on one of those." we provide the exact individualization that your body needs. wow, that feels really good! once you experience it, there's no going back. at the sleep number memorial day sale, save 40% on our innovative sleep number silver edition bed-for a limited time. only at the sleep number store, where queen mattresses start at just $699. sleep in my contacts. relax... air optix® night & day aqua contact lenses are approved for up to 30 days and nights of continuous wear, so it's okay to sleep in them. visit airoptix.com for a free 1-month trial. for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. osteoporosis-related bone fractures and low magnesium levels have been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain.
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other serious stomach conditions may still exist. talk to your doctor about nexium. mary? what are you dog here? it's megan. i'm getting new insurance. marjorie, you've had a policy with us for three years. it's been five years. five years. well, progressive gives megan discounts that you guys didn't. paperless, safe driver, and i get great service. meredith, what's shakin', bacon? they'll figure it out. getting you the discounts you deserve. now, that's progressive. call or click today. whose non-stop day starts with back pain... and a choice. take advil now and maybe up to four in a day. or choose aleve and two pills for a day free of pain.
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it's actually a series of dirty books, all under the banner "50 shades of grey." since it came out in april, it's really been america's dirty, guilty, racy, and twisted little pleasure, whether consumed on paper or on an electronic screen. it's when you go to borrow it from the local library that you might run into a bit of trouble. our report tonight from nbc's anne thompson. >> the only thing hotter than the eratic "50 shades of grey" trilogy is the debate over whether libraries should carry it. florida's brevard county library pulled it from their shelves. >> it's not what we deem as appropriate material for the book shelves. >> six other libraries banned the books, too. barbara jones admits the novels are not great literature, but disagrees with the ban. >> libraries exist in our communities to protect and defend the freedom to read in the united states. >> he makes a low sound in his throat. >> they're an unqualified hit
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with women. >> fastest read ever. >> and eback success spread by word of mouth at book clubs. >> the series now in its 50th printing since its release is a. >> i'm not going to say that. >> ellen degeneres having fun with a steamy story about an affair between a college student and a manipulative rich man, described by the lady herself as mommy porn, saturday night live parodies it as the ultimate mother's day gift. >> the ladies of the "view" asked president obama about it. >> what is the controversial sex book that's on millions of women's bedside table? he doesn't know that. >> i don't know that. >> good, next. >> i'll ask michelle when i get home. >> at libraries where the books are in stock, there are waiting lists. dallas, st. louis, minneapolis, cleveland. and here at the new york public
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library, more than 4,200 people are waiting for a chance to read one of the three books. i know, i'm turning 50 shades of red, too. inappropriate or private affair, these books once whispered about among women are now part of the national conversation. ann hello. rhyme here, talking about storm 4 radar and the rain across the area. fauquier county, really getting hit very hard ri
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