tv CBS Morning News CBS April 27, 2010 4:00am-4:30am EDT
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grilling goldman. goldman sachs executives to testify on capitol hill amid allegations they cheated investors. 1,000 barrels a day leaking oil from that collapsed rig in the gulf of mexico threatens an environmental disaster. and 911, please hold. car jacked college students in atlanta claim emergency services took their time. this is the "cbs morning news" took their time. this is the "cbs morning news" for tuesday, april 27th, 2010. captioning funded by cbs good morning. thanks for joining us. i'm michelle gielan. democrats hope public anger at wall street will help them push through a sweeping financial reform bill. this morning they may get some help when a senate committee
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questions top executives from goldman sachs. ten days ago the sec accused wall street of fraud. randall pinkston is in washington with details. good morning, randall. >> reporter: good morning. that senate subcommittee is expected to use some of goldman sachs' own e-mails when it questions lloyd blank fine. blankfein, of course, will denny wrongdoing insisting that goldman never misled its chints. the ceo of goldman sachs will try to convince lawmakers that the banking giant did not cheat its clients. according to prepareded testimony, lloyd blankfein will tell senators we managed our risks as our shareholders and our regulators would expect. but that's not what a senate investigation found. newly released company e-mails suggest goldman made billions from the housing meltdown while its investors paid the price. sounds like we will make some serious money, e-mailed one employee as foreclosures grew. in another e-mail, one goldman trader wrote, i'm not so convinced this is a total death
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spiral. in fact, we may have terrific opportunities. >> people have a right when they are being offered a bond or a stock or a security that the person that's offering them that security hopes it will succeed. >> reporter: today's senate hearing will also likely address the civil fraud charges against goldman. the securities and exchange commission has also accused of firm of misleading it clients. the s event krechlt claims goldman did not tell customers that a mortgage related invest want, abacus, was set up to fail, but had trouble finding an outside partner to vouch. one trader wrote a trader declined. >> it's really a story here, there's a thread kind of connected by extreme agreed. >> reporter: goldman denies the charps an insists it, too, lost when the housing bubble burst. the bank took a hit of more than $1 billion. but ended up making more than $3 billion back. goldman's chairman blankfein
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says that the firm will fight the charges in court and says that his firm can't really survive without the trust of its clients. michelle? >> and, randall, the ceo isn't the only star witness expected to testify today, is he? >> reporter: in fact, he is not. another star witness will be goldman trader fabrice tur ray. he was the only person so far charged by the sec in the fraud investigation. we've learned that he will not be taking the fifth. he was just out of college when he was hired by goldman just 31 years old, but now the company's reputation could rest on what fabrice tur ray has to say. >> all right. randall, thank you. the next senate vote on financial reform could come as early as today. on monday, republicans put the brakes on it voting unanimously to block democratic efforts to begin debate. the bill forms a consumer watch dog, cracks down on unregulated securities and creates a way to
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liquidate large firms that get into trouble. most republicans think it goes too far. the two sides continue to negotiate. >> i don't want to unduly delay anything. we're negotiating for a better piece of legislation, not for the sake of delay. >> at what point do my colleagues understand that until we debate these issues and revolve some of these matters, we're as vulnerable today as we were 18 moments ago. >> tomorrow president obama will speak about reforring wall street in quinnity, illinois. a federal appeals court ruled that a massive class action suit against retailing giant walmart can proceed. walmart plans to appeal. the suit alleges that walmart pays female employees less than men to do the same job and that women receive fewer promotions. more than 1 million women and billions of dollars may be involved. car jacked victims allege that they were put on hold when they called 911. three moorehead college students
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and a friend said they were car jacked at gunpoint in atlanta on sunday night. . they claim they called the morehouse police department for help and was put on hold. >> answered the phone pd a i was getting frustrated that i couldn't get through to 911, like they kept sending me to a automatic matsed system. i was worried because i didn't know exactly where we were going. >> atlanta police say the calls were not put on hold and their calls did not give information that could lead police to them. two suspects have been arrested. the oil leak from that collapsed rig in the gulf of mexico has put hundreds of miles of coastline in darng. about 1,000 barrels a day are leaking. crews are working round the clock to plug it, but so far no luck. kelly cobiella has that story. >> reporter: after a weekend of rough weather, skimming po inmi are back on the water trying to contain an oil slick. the oil leak is 5,000 feet below
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the surface and crews still haven't been able to cap it. >> progress continues, but it's a very challenging work environment at these water depths and with this complexity. rfrt the deepwater horizon was connected to the well on the sea floor by 5 thousand foot long pipe like structure called a rirz and a 50 foot valve 37 when the rig sang, the riser broke free, twisting and folding over itself as it fell to the sea floor. the kinks are helping to slow the flow of oil leaking from two places on the riser. using underwater vehicles with remote controlled arms, officials are trying to force the blowout preventer, a 450 ton valve, to close, sealing off the well completely. it's a complicated process and three no guarantee it will suck cease. at the same time, they're getting ready to drill two more wells one to two miles from the
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site, tapping in to the original well, then pumping a material like concrete to plug it. that too came several months about so that as a hail mary pass if they can't stop the leak, they'll try to cover them with two underwater domes connected to pipes which will bring the oil to the surface. it's been done before, but never in water almost a mile deep. >> we don't know which technique will ultimately be successful. >> reporter: for now, north winds are pushing the oil slick away from the gulf's delicate wetlands and beach, but they shift to the north on thursday. kelly cobiella, cbs news, miami. protesters stormed the ukrainian parliament building this morning. a smoke bomb was released and the speaker got hit with eggs. some used umbrellas as shelter. the demonstrate tors are opposed to extending an agreement that allows russian navy ships to be based at a ukranian black seaport. the extension is good until 2042. ukraine's president made the deal in exchange for a 30% cut in the price of gas that russia
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sells to the ukraine. there's a new video this morning apparently showing accused christmas day air bomber uhe mar abdulmutallab training with al qaeda in yemen. first obtained by abc, the video shows abdulmutallab firing weapons and speaking in arabic about the upcoming attack. he's accused of trying to blow up a detroit bound airliner but his bomb failed. it's not clear exactly where and when the video was made. former dick tar tore manuel noriega arrived in france this morning. now 76 years old, he was put on a commercial flight from miami last night. he's been convicted in france on money laundering charges and had been fighting extradition for years. noriega surrendered to u.s. authorities back in 1990 two weeks after u.s. forces invaded panama. he have sentenced in this cup on drug trafficking charges. just ahead on the "morning news," hef helps rescue the hollywood sign. plus, pinstripes for
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president obama. the world champion yankees get a white house welcome. first, katie couric has a preview of tonight's c"cbs evening news". the recession is apparently over for one part of the country. we'll show you where and how they did it. plus, goldman sachs under fire and congress wants answers. a report from the capital tonight only on the "cbs evening news." >> announcer: h this portion of the cbs morning news sponsored by intuit. stay on top of your business with quick looks on line. try it for free at intuit.com. just choose a style, then customize, publish and get found. sweet. get a 30-day free trial at intuit.com.
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at cousin everett's blueberry farm to talk about our blueberry juice drinks. they're made with my sweet, ripe blueberries, packed with th-those antioxidants that are good for ya. tastes real good, too! to give you an idea, let's whip up a quick sample. or you could just try this. [ chuckles ] yeah. ocean spray blueberry juice drinks. real blueberries, real good.
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in los angeles, the hollywood sign has been rescued again. the big sign overlooking the city was threatened by construction of near account by estate homes, but "playboy" magazine founder hugh hefner donated $900,000 to complete a $12.5 million fund-raising drive that will keep the land free of development. the supreme court has
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decided to hear a case concerning the sale of violent video games with free speech implications. the case involves a california law that banned the sale or rental of violent video games, including killing, maiming or sexual assault to minors. of it struck down by an appeals court on the grounds that it violated miner minors oo constitutional rights. on moech been this. >> reporter: az in an stock markets pushed low erg this morning on worries about greece's rescue plan while the nikkei finished nearly half a percent high person the federal reserve meets to talk interest rates and wall street gets the latest on consumer confidence in home prices. monday, the market finished just about where it started. the dow gained less than one point while the nasdaq last seven. ford is expected to report first quarter earnings of more than $1 billion later this morning. the automaker has been gaining momentum due to high quality rankings and because it didn't
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need a government bailout to survive. the first quarter profit would be a huge turnaround for the same period last year when the company lost $1.4 billion. uncle sam is selling off its shares of citigroup. the company -- the government has owned more than a quarter of the company's since bailing it out in 2008. the treasury department plans to sell about 20% of their stake. and the case of the leaked iphone may soon turn criminal. police seize the computers, digital cameras and other items from gizmodo.com editor jason chen. chen posted pictures and details of a lost iphone prototype that he bought from someone? a bar about that chen was not arrested, but the leak could constitute a spell any. >> emily smith here in morning. thanks. president obama welcomed the world champion new york yankees to the white house. mr. obama, who we all know is a big chicago white sox fan, shook hands with the yankee, praised
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team captain derek jeter, ace relieve paper rivera and the team's 27 champions. >> this is a team that goes down to spring training every year expecting to win it all. and more often than not, you guys get pretty close. of course if i had rivera, i'd get pretty close, too. >> and the president seemed to enjoy holding the world series trophy as they posed for photographs. for some of the yankees, this was their fifth visit to the white house as champions. they have been honored by three different presidents. straight ahead, your tuesday morning weather. and t in sports, the magic swee into the second round of the nba playoffs. ere. what do you guys want to do? both: make rice krispie® treats! six. how many cups is it? oh, that's not six yet. whoa. where's the pan? both: over there. ( laughter ) push it down. push it down.
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edible arrangements bouquets beautiful like flowers, but unforgettably delicious, any second now... visit, call or go to ediblearrangements.com here's a look at the weather in some cities around the country. new york, morning showers at 60. miami, 84. chicago, 51. denver, 67. los angeles, a.m. fog at 71. and it's time now for a check on the national forecast. the latest satellite picture shows skies clearing across the central plains. clouds linger in the northeast and more rain is expected and it's clear in portions of the southeast. now, later today, a new storm is expected to come ashore in the pacific northwest. it will be warming up throughout the plains and it will be partly sunny around the great lakes. in sports, one first round nba playoff series is over. orlando finished off its sweep
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of charlotte with a 99-90 win in game four. the magic will face the atlanta/milwaukee winner the eastern conference semifinals. milwaukee evened up that series with atlanta at two games a piece.bucks beat the hawks 1 11-104. game five wednesday in atlanta. >> sfloo and phoenix came back from 14 points down to crush portland 107-88. the suns lead the series 3-2 and could wrap it up in portland on thursday. in baseball, a slugfest at fenway park. boston played the longest nine inning game in the majors this season at four hours and three minutes. and the red sox pulled out a 13-12 win over the blue jays. and in the national league, a 10th inning bases loaded walk gave the cubs a 4-3 victory over washington. it was chicago's fourth straight win. go cubbies. when we return, another look at this morning's top stories
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on the "cbs morning news," here's a look at today's weather. a new storm in the pacific northwest is expected to bre bring heavy rain. up to two inches is possible in isolated locations. and there will be scattered storms in the carolinas. here's another look at this morning's top stories. goldman sachs executives testify before a senate committee this morning. the government has accused goldman of misleading investors. and walmart is facing a massive class action suit. the suit alleges gender discrimination. walmart says it will appeal. the latest health information on people in america is not good news.
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sandra hughes has the shocking results of a new government survey. >> reporter: stop someone on any street in america and chances are you'll find a chronic health problem. >> a little high on the cholesterol. >> i have high cholesterol, yes. >> reporter: this man has high blood pressure. >> i'm hoping i can get off this medication. all right they have plenty of company. the centers for disease control has startling new data about the state of our health. 45% of americans, almost half the entire adult population, has high blood pressure, high cholesterol, or diabetes. conditions are that are killing us. >> each one of these conditions is a risk factor for cardiovascular disease, which is one of the leading causes of death in the u.s. >> reporter: even more frightening, the study finds 13% of americans have two of the conditions. and 3% are struggling with all three. the cause? science points to measures' growing waste line. we're eating too much and
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exercising too little. the latest statistics show that one-third of americans are obese. >> you eat a lot of fast food and you're always on the run and don't make good food choices, could you end up in that situation. >> reporter: the study also reveals that one in seven adults did not even know they were sick with these conditions. conditions that could shorten their lives if about left untreated. but there is good news. >> these are all conditions that are treatable through lifestyle changes and medications. >> reporter: a message americans have heard before but don't seem to be digesting. sandra hughes, cbs news, los angeles. in other health new, a warning for chocoholics. the a new study find that's thing chooch chocolate could be a sign of depression. people who are depressed at evident an average of #.4 servings of chocolate a month, three more searchings than knows who are not depressed. researches say the depression might stimulation chocolate cravings in an effort to improve
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mood. this morning on "the early show," an exclusive interview with senator john mccain. i'm michelle gielan. this is the "cbs morning news." [ female announcer ] green. once just a simple color. not anymore. now it describes everything we choose and buy. eat and drive. well, what if green could be simple again? as simple as say, doing the dishes. presenting future friendly from p&g. the products you use every day designed to do one of three simple things: save water, save energy or reduce waste. because when green is user friendly...
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[ grunting ] [ male announcer ] venus williams doesn't let sweat and odor ruin her style. [ grunting ] [ male announcer ] new tide plus febreze freshness sport. the #1 sports detergent at putting away stains... and it eliminates odors, so your style is always fresh. [ venus ] i smell victory. [ male announcer ] if it works for venus, imagine what it will do for your family's clothes. tide plus febreze freshness sport. style is an option. clean is not. good morning. i'm andrea roane. here's some stories we are keeping an eye on for you today. the fifth suspect in the mass shooting on capitol street will go to court today. police arrested 21-year-old jeffrey best on monday. he faces four counts of first- degree murder and one count of felony murder.
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martin o'malley officially kicked off his election campaign this afternoon. he will begin a statewide tour of prince georges community colleges in largo, maryland. executives from goldman sachs will head to captiol hill to face a drilling by lawmakers today. the financial giant made billions off the housing market colap at the expense of its clients. howard bernstein is here to tell us if we will dry out today. >> yeah. already drying out in many areas. although there are one or two sprinkles through dc, montgomery county, north up 270 and even to the east in anne arundel county approaching 50 light sprinkles. big picture on the weather computer. you will see the shower and the thunderstorms, some were strong last night. those are rotating through over to the other side of the bay and, turn on the weather computer please. there we go. they are going across the delmarva and some clouds
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around. that's going to clear out the next few hours. temperature-wise, readings in the 50s. upper 50s here in washington. low 40s in oakland and the winds, before i go, they are gusting to 20 miles an hour so breezy and cool the next couple of days but the end of the week is significantly warmer. >> warm it up. i'm ready for it. wear my jacket out. >> two more days. >> get a spring coat. that's why we have them. >> you are right. we have a little construction early on. on the inner loop at telegraph road you will lose the lane for a half hour and then should be back up. no complaints toward the 14th bridge and in maryland look at the capital beltway. it appears a nice, quiet commute. everyone appears to be moving at speed between 95 and 270. no list of approved drivers
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for city cars. no way to track tens of thousands of dollars of gasoline purchases. paying for damages when a city employee on her way to bible class crosses the line and gets in to an accident and that's just the beginning. we have more on how the district manages its fleet of vehicles. >> reporter: not counting school buses, city agencies run more than 2600 vehicles and how do they keep track of them? >> it is like somebody gave the keys to a careless teenager, let them go out joyriding and they wrapped around a tree. it's an incredible bunch of fiscal mismanagement. >> reporter: a study looking at five of 78 city agencies concluded the department of public works has no comprehensive management program for the fleet. no effective driver safety program, has inefficient management of fuel cars. so another the pump, the city can't account for $27,000 of gasoline pumped in to 15 cars the city doesn't own or lease. >> this is a mess all around. and somebody had better clean
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it up fast. >> reporter: cars assigned to the mayor's office and school's chancellor account for part of the $72,000 in uncollected ticket and fines accumulated by just five city agencies. >> that doesn't seem to be fair. i have to pay my tickets they need to pay their tickets. >> reporter: because the city can't say who got the tickets they stay unpaid. >> this is only a sampling of some of the problems in the district's motor vehicle fleet. we don't know the true extent of the problem but we better get to the bottom of it soon. this could mean hundreds of thousands if not millions of dollars of wasted money. >> reporter: department of public works did not grant our request for an on camera interview but said in response to the auditor it is working on more comprehensive policies. gary none burg, 9 news now. this is
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