. >> reporter: abdel baset ali al megrahi was convicted of 270 counts of murder and sentenced to lifeis part in the bombing of pan am 103. now the former libyan intelligence agent is dying of prostate cancer, and scottish officials are considering granting him what they call a "compassionate release." and there's other factors, but i have made no decision as yet. >> reporter: even the prospect of his release has infuriated some families of the victims. kathleen flynn's son j.p. was flying home for the holidays when flight 103 exploded over lockerbie. >> you don't allow someone who has murdered, you know, premeditated murder of 270 innocent people and let them walk away from their prison term. sorry, it's just not -- it's just not just, and it's not fair. >> reporter: u.s. officials agreed. >> we believe that he should spend the rest of his time in jail. >> reporter: but in britain, a dying prisoner can qualify for compassionate release. last week, the infamous great train robber ronnie biggs was freed, aged 80 and suffering from pneumonia. and some british relatives of the lockerbie d

. >> reporter: abdel baset ali al megrahi was convicted of 270 counts of murder and sentenced to life for his part in the bombing of pan am 103. now the former libyan intelligence agent is dying of prostate cancer, and scottish officials are considering granting him what they call a "compassionate release." >> clearly he is terminally ill, and there are other factors. but i have made no decision yet. >> reporter: even the prospect of his release has infuriated some families of the victims. kathleen flynn's son j.p. was flying home for the holidays when flight 103 exploded over lockerbie. >> you d don't allow someone wh has murdered, you know, premeditated murder, o0 innocent people and let them walk away from their pririson termrm. sorry, it's just not just, and it's not fair. >> reporter: today, u.s. ficials agreed. >> weelieve that he should spend the rest ohis time in n jajail. >> reporter: but in britain, a dying prisoner c qualify for compassionate release. last week, the infamous great train robber ronnie biggs was freed, aged 80 and suffering fromom pneumonia. and sosome britis

we will show debate release of pan am 103, with abdell baset ali al megrahi with this debate to releasem to his home libya, the government's decision was defended and took opposition from leaders, this event is about an hour and 15 minutes. . business today which is a statement by the secretary of justice on the decision. this is of utmost seriousness. while today's business will be understandably emotional, we all have a part to play.

abdel baset ali al megrahi after just eight years in prison is now a free man.es say he has terminal prostate cancer. they say they're showing compassion and sending him home to die. presumably with his family. the obama administration fiercely opposed the release. 270 people were killed when that pan am jetliner was blown out of the sky. here's cnn's diana megnay in scotland. >> reporter: this was the crater left by the 747 airliner that was pan am flight 103 brought over the small scottish town of lockerbie, in 1988 by a terrorist bomb in the cargo part of the plane. in these memorial gardens, it's hard to imagine the carnage, but george stobs who was one of the first policemenman on the scene remembers it vividly. >> the doors were bombing and it was like hell. i remember also, like, see a wrought iron gate and in the distance, and i could see it, it was actually dripping like molten butter. drip, drip, dripping away. >> reporter: all 259 people on board the flight, most of them americans on their way home for christmas, were killed. as were 11 residents of t

abdel baset ali al megrahi in the dark suit, the only person convicted in the 1980 attack that blew pan am flight 103 out of the sky over lockerbie, scotland. 270 people were murdered. most of them americans. now, scotland has freed the cancer-stricken al megrahi eight years into a life term and they sent him back to his native libya, where a cheering crowd gave him a hero's welcome. >> i have decided to allow him to go home to die. i am showing his family some compassion. i accept it was a compassion not shown to families in the united states or in scotland. but we have values. we will not debase them, and we will seek to live up to those values of humanity that we pride ourselves on. he was brought to justice after tremendous work, not simply by scottish police, prosecution and authorities but by the united states. equally, as i say, in scotland justice is tempered with compassion. and that, as i say, why he's been allowed to go home to die. >> compassion? that's the judge that decided to free him. it's an emotion that loved one of the lockerbie victims can't find in their hearts righ

report out of britain that seems to confirm the deep suspicions about the release of abdel baset ali mohamed al-megrahihe libyan is the only person convicted in the 1988 lockerbie bombing and he killed 270 people aboard pan am flight 103. the "times of london" is reporting that prime minister gordon brown government released al-megrahi in a deal for oil. not for compassion, due to his terminal cancer, as was previously claimed. this is according to leaked government correspondencorrespo the paper says. >> eric: well, the economy may be showing signs of improvement and wall street has been up, but you can't tell by looking at some of the nation's banks. the number of bank failures have been accelerating in recent months. so far this year, 84 banks have gone under. compare it to 25 banks last year. they say it's not over yet. they think 200 to 300 more banks could soon go belly up and they blame trouble in the commercial real estate market. fox news's brenda buttner with us from the fox business network with the latest. what does it mean for our bank? what does it mean for our money? are our savings safe

that a multi-million dollar oil deal was behind the release of the lockerbie bomber abdel baset ali mohamed al-megrahi. there have been cited leaked correspondence between correspondence saying that the lockerbie decision was part of "wider negotiations with libya." the decision to release al-megrahi on compassionate reasons have caused outrage. >>> police have expanded the investigation of the kidnapping of jaycee dugard. the home of the people who allegedly kidnapped her have been searched. now they call the neighbor's house also a crime scene and won't elaborate. >>> stronger form of the h1n1 virus may be developing. doctors reporting a new strain of the flu virus what goes straight to the lungs. the world health organization says the illness is hitting younger people and sending them to the hospital for intensive care. expresidents, foreign dignitaries, friends and family gathered to pay tribute to senator edward kennedy. >> my name is ted kennedy jr., a name i share with my son, a name i shared with my father. although it hasn't been easy at times to live with this name, never been more proud of

abdel baset ali mohamed al-megrahi greeted at the airport by hundreds of supporters.ng it off, he was hugged by libyan president moammar gadhafi. the warm welcome, sign of defiance to the obama administration who had asked that libya place terrorists under house arrest. amy kellogg is live in london. somehow the u.s. reaction to this continuing celebration of terrorist? >> i spoke to people in the state department of washington and foreign office of london who said the next few days would be critical. that he would watch to see the action in terms of the libyan leaders in how al-megrahi was reintegrated in society or celebrated in anyway. clearly the greeting between him and gadhafi will have aggravated the situation between washington and tripoli. it will not have gone over well. gordon brown asked specifically in a letter that gadhafi not make a big deal about al-megrahi's return to not inflame the sadness and emotion among the families of the victims of pan am 103. in an unusual move, f.b.i. director mueller wrote a letter to the scottish justice minister who made

. >> the man responsible for releasing abdel baset ali mohamed al-megrahi, the lockerbie bomber is getting an'reful from the f.b.i. director robert muller. they released al-megrahi from the life sentence on compassionate grounds. in a letter released yesterday, outraged muller called the scottish minister decision "inexplicab"inexplicab "detrimental to the cause of justice. "he went on to say it would give comfort to terrorists around the world. we asked you at home what you think of the decision to release the lockerbie bomber. here is what you said on foxnews.com. 96% of you say al-megrahi should have died in prison. 78,000 people. compared to just 3% who say it was a compassionate move by the scottish court. you can weigh in on this viewer vote question at foxnews.com. keep in mind, these results are not scientific. the government may have to shelve one of the most effective tools in the fight against terrorism. federal judge ruled it's unconstitutional for the treasury department to freeze the assets of charities that are under investigation for aiding terrorists. what will it mean for

suzanne, we're told that the obama administration has been notified informally that abdel baset ali mohmed al megrahi , the lockerbie bomber, will be released by scottish authorities on humanitarian grounds. state department officials tell this to cnn producers, saying this is a compassionate action on the part of the scots. the exact terms of his release have not been clarified to u.s. officials as yet. now, u.s. officials have been very outspoken in their views on this case. both secretary of state clinton and attorney general eric holder have been in contact with scottish justice authorities to voice their opinion that this is a man who should stay in jail. in addition, the lockerbie families have weighed in. there's some division of opinion, but those who believe he should stay in jail say they are horrified of thought this man could be released from jail whether he's ill or not. he's 57 years old. he has cancer. you can expect tomorrow that you will hear a very vehement reaction from u.s. officials probably in the white house, the state department, the justice department. they will not be happy