he defended his decision to hire former news of the world editor andy coleson as communications chief reminding lawmakers he has not been found guilty of anything. >> it turns out, andy coleson knew about the hacking of the "news of the world" woe have not only lied to me, but to the police. >> he is one of 10 people arrested this month in connection with allegations reporters intercepted voice mails to get scoops. >> and federal reserve fined wells fargo $85 million saying bank employees steered potential home buyers into subprime loans even when they qualify forward prime loans that came with additional costs. the fed says wells fargo falsified income information with the borrower's knowledge. up to 10,000 people could be eligible to get back 1,000s skpdz $20,000, wells fargo says it terminated a small group responsible for alleged actions and it's working to strengthen it's internal control autos thousands of homeowners, maybe you, will be getting refunds for thee fees they he paid to save their homes. >> seems like banks are rebating money left and right. if you had a home loan se

investigation goes, including where it concerns the man he hired to be his communications chief, andy coleson. >> martin, what i thought was fascinating was how he was trying to link this a little bit to labor and say, hey, wait a minute, this happened on your watch too. >> well, absolutely, but the problem that cameron has is that by hiring that guy, andy coleson who was the former editor of the "news of the world" apparently possibly knowing about the investigation into the bribery and phone hacking scandal, the question is, to what extent did cameron know about that investigation? know that the police had not fully investigated the scandal and nevertheless, against the advice of his people, in 10 downey street, he insisted on hiring andy coleman. as miliband put it, an error in judgment, that's what cameron is now defending himself. of course, he claims that is just pot touring by the opposition, but it's a serious question here. >> it's a tough time to be prime minister. martin fletcher in london for us. thanks very much. >>> still to come, we got the ultimate test of brevity. which presi

>> well, the linkage between the two is in the person of andy coleson who was the editor of the "news of the world" when some of the event it is, the phone hacking, took place. and the fact that he was hired by the man who had been leader of the opposition and is now the prime minister, david cameron, the person, of course, linked the two. british politicians have always had close links with media magnates and rupert murdoch is no stranger to number 10, that's true. but coleson... >> ifill: number 10 downing street. >> number 10 downing street, my apologies. but the hiring of coleson took things a step further and cameron's links with rupert murdoch, with news corporation, with news international were probably... formal and informal links were very strong. >> pelley: you just saw david miliband leading the question of the prime minister. what is his role in all of this >> well, it's been unclear. ed miliband... >> ifill: ed, sorry. >> yes, david was his brother. he has really yet to find, i think, his voice as the opposition leader and it's a question of whether this is, in fact, an o

. >> here he is, prime minister cameron, speaking today about his former aide, andy coleson, who waset's listen. >> first, andy coleson, who worked for four years as my director of indications, he resigned from news of the world because of things that happened on his watch. i decided to give him a second chance and nobody has raised serious concerns about how he did his job for me, but the second chance didn't work out and he had to resign again. the decision to hire him was mine and mine alone and i take full responsibility for it. shtle what did he mean it didn't work out after he gave this guy a chance? >> either coleson lied to cameron or cameron knew there was much more to it. problem with this is cameron was warned repeatedly by many people that the phone hacking scandal was much bigger than coleson said. >> will this hurt the government, bring it down? >> i don't think it will bring it down, but this story has a long, long way running and cameron is in deep trouble. >> thanks for coming in. when we return, final takeoff of the space shuttle. final takeoff and whether we still

possibly criminal reporting tactics, including voice mail hacking by company employees, one of them, andy coleson, who went on to become an aide to the british prime minister. >> i believe absolutely that andy did not have knowledge of what was going on. >> reporter: this may be why hinton is in trouble. in 2007, he told members of a british parliamentary committee he believed only one journalist- - clive goodman-- have been involved in any wrongdoing. >> the police obviously carried out pretty thorough investigations and the result of their investigation was against clive and the private detective. clive went to prison, the "news of the world" paid a substantial amount to charities nominated by prince harry and prince william. >> reporter: jeff jarvis worked for hinton and knows his management style. >> les hinton, i think, was also a very, very loyal executive. and in the end he threw himself on the sword for murdoch. >> reporter: now, as liz palmer just reported, at least nine journalists are being investigated. as for les hinton, in his resignation letter to rupert murdoch, he said he was ign

andy coleson was the paper's editor during the scandal. at first, only celebrities and politicians were hacked. >> i feel regret. clearly practices of certain individuals did not live up to the standards and quality of journalism that we believe in and that i believe in. and that the company believes in. >> news corp. chairman rupert murdoch calls the allegations deplorable and unacceptable and promised full cooperation with the investigation. >>> there's a good chance that next major terrorist attack on the u.s. will not be a bomb. instead the feds are worried about computer viruses. how prepared is the government for a sigher attack? tucker. >>> we've got changes in the weather department, we've got at least the possibility of some pretty good rain around here today. i'll have the debails on that -- details on that and julie wright has a look at your fox 5 on time traffic coming up in two minutes. >>> on alert now for swimmers on the beaches of massachusetts. there have been at least three sights of great white sharks off cape cod in the

his former spokesman andy coleson, also a former editor of news of the world was arrested last week. cameron himself admits the relationship between politicians and the media has become in his words cozy and comfortable. the head of the opposition says it's time for change. >> unless politics is willing to come clean about these relationships, unless it's willing to shine a light on these relationships, then the public is not going to have confidence in the future. >> reporter: restoring confidence in news corp. may be equally difficult, something the company admitted in a second full-page ad in british papers this weekend. apologizing for our mistakes and fixing them are only first steps, the statement says. it may take some time for us to rebuild trust. >> murdoch will try to start to rebuild that trust on tuesday in parliament when he and his son james are scheduled to be questioned by the lawmakers. rebekah brooks, by the way, is supposed to be there as well, but her spokesman says tonight that her arrest might change that. her arrest also raise as possibility that james murdoch

we've just heard the andy coleson, who's the former editor of "the news of the world" and also, until recently, communications advisor to britain's prime minister, has been told by the police that he's going to be arrested tomorrow. scott? >> pelley: thanks, liz. with the d-day for default less than four weeks away, president obama had congressional leaders to the white house today to try to get the negotiations moving again. we have reports tonight from nancy cordes at the capital and chip reid at the white house. >> reporter: scott, the president called today's meeting with congressional leaders "constructive," but he also said the two sides are far apart on a wide range of issues. >> i thought that all the leaders here came in a spirit of compromise. >> reporter: it was a dramatic change in tone compared to just last week when the president gave congress a stern lecture. >> you stay here. let's get it done. >> reporter: white house officials, though, say there was no major break through in today's meeting and the president said the hard bargaining is still ahead. >> everybody ackno

in january of 2011 the former news of the world editor andy coleson who already resigned over the scandal was forced to stand down again as communications for the prime minister amid more allegations. now news milly dowler's phone may have been hacked in 2002 suggests the news of the world was involved in this illegal practice much earlier than previously thought. it's putting huge pressure on rebecca brooks, who edited the paper in 2002 and now runs the parent company, news international. in a statement to colleagues she denies knowing about phone hacking saying she's sickened by the allegations, adding if true, the devastating effect on milly dowler's family is unforgivable. her former boss has already been questioned by a powerful committee of politicians telling them phone hacking was the work of a lone rogue reporter. >> i believe he was the only person, but that investigation under the new editor continues. >> but the committee chairman has never been convinced. >> we set up a time. the claims that were made to us that this was the ak tiftds of one reporter and nobody else had any i

cameron is under fire for hiring as his press chief the former editor of the paper andy coleson who latert the role and was arrested. >> with 20/20 hindsight and all that followed i would not have offered him the job and i expect he wouldn't have taken it. >> operation labor party leader didn't leave him off the hook. >> the prime minister, mr. speaker, was caught in a tragic conflict of loyalty. between the integrity that people should expect of him and his staff. and his perm allegiance to mr. coleson. he made the wrong choice. >> cameron was also questioned about the contact with news corp officials. he said today, though, he did not have any inappropriate discussions with them. he noted the labor party as well as his conservatives long courted rupert murdock and his company. >> everybody has done it. we've all got to admit this sort of relationship needs to be changed and put on a more healthy basis. >> murdock addressed this point in his hearings yesterday. >> you had frequent meetings the prime minister in your career. period after the arrest. >> i wish they'd leave me alone. >> the

david cameron defended his decision to hire andy coleson.ntime news corp announced new this morning it has terminated payments to an investigator in that scandal. >>> there was drama during yesterday's three hour grilling of murdoch. a man actually tried to hurl a plate of shaving foam at the news corp ceo. but guess what happened? murdoch's wife jumped up and punched the man. a facebook page has been created for fans of mrs. murdoch's right hook. >>> at & t could start installing new cable boxes in san francisco as soon as today. the board of supervisors approved the installation would an environment fall -- environmental report yesterday. it will create more options for cable and internet service. critics say the boxes will be an eyesore and will attract vandals. only on two a 62-year-old wind surfer shares her amazing story of how she survived 13 hours in the san francisco bay. >> i think i was most scared going through the bridge i was afraid i might get caught on something. it was getting cold. yes. that's why i have to keep extra swimm

it has it that rebecca brooks advised himto take andy coleson so he would have an alliance in the nation and they would look on him kindly and david cameron was settled on now the press secretary for the london may and at the last moment rebecca brooks persuaded him to take coleson instead and i'm a bit skeptical. >> she denied it today. >> she denies it and tartly suggested it was george osborne the chancellor who suggested coleson which i think is true. i suppose if you're skeptical you'd say he wanted alliance national and wanted to bring the papers over to the toriis which did happen. knowing some of people involved a bit he was good at what he did and was pretty effective. he knew how to operate in the media. he was a crisp communicator. they liked him in downing street. i think david cameron liked him a lot. i think david cameron felt he was terribly useful to him on stories that were -- could have been threatening personally and good at batting way difficult stories and i think there's a curious mixture of arrogance and weakness about david cameron. the arrogance was he thought he

and most of all he should apologize for the catastrophic error of judgment he made in hiring andy coleson. rupert murdoch, his son james and news international chief executive rebekah brooks have been summoned to appear before a parliamentary committee next tuesday. questions have begun to arise about the impact this scandal will have on the future of murdoch's global media empire and what it pact it will have on british politics and the future of prime minister david cameron. his press spokesman andrew coleson, former editor of "news of the world" has resigned and has been arrested. joining me from london, alan rusbridger, the editor of "the guardian," catherine mayor, "time" magazine london bureau chief. the cover story on "time" is hers and alister campbell, former communications director to prime minister tony blair. joining me frocambridge, john burns, the "new york times" london bureau chief. here with me in new york is roger cohen of "new york times" and josh tie ren tie ren jell of blooplberg business week. where is the story as we speak? >> everyday brings another startling turn

he has admitted that his chief of staff was given information before the general election that andy colesoned a man had hired a man jailed for seven years for a criminal conspiracy who made payments -- who made payments to the police on behalf of the "news of the world." this evidence casts serious doubt on mr. colson's assurances that the phone hacking over which he resigned was an isolated example of illegal activity. >> do you know what, mr. speaker? do you know what, mr. speaker? i think that the fub lick and the victims of this appalling scandal want us to rise above this and deal with the problems that this country faces. >> mr. milliband. >> mr. speaker, he just doesn't get it. he just doesn't get it. >> i'm afraid, mr. speaker, the person who is not getting it is now the leader of the opposition. >> the unfolding firestorm was brought to life by hollywood actor hugh grant, a brit himself who secretly taped a former news of the world reporter talking about the unsavory practices that he says everyone in his organization condone and encourage. here's grant taking a very uneasy looking

and coming clean about what conversations he had with andy coleson before and after he was appointeds hasn't been arrested yet, maintaining she knew nothing about phone hacking. david cameron said her offer to resign last saturday should have been accepted but still she remains. just a week ago, it would have been unthinkable that a british prime minister would have suggests one of murdoch's favorite lieutenants should stand down, such was his influence and power. but as the saying goes, a week is a long time in politics, and these past seven days have seen some tectonic shifts, many wondering if murdoch's influence over british politics is now on the wane. >>> as we mentioned, we learned last year that andy coulson has now been released but is due to return to a london police station in october pending further inquiry. >>>. co-up, brooke's special report on how to catch a suspected serial killer. >> but i have to ask you, there you are in a cell across from this alleged serial killer. you're eating breakfast with himg. what was day to day being with this man like? >> what was it lik

andy coleson is being alleged to have known about this when he was heading up the newspaper. >> reporter: this goes to show how it goes to the very hard of politics here basically andy was the chief spin doctor for prime minister david cameron so this is a major embarrassment for him and it's so bad that he's coming back to england early from his trip to south africa specifically to address these phone hacking allegations at a special day of parliament tomorrow. >> we'll be following the latest with you. thanks so much. >> we had great reporting there also from richard qwest. >> his voice carries. >> he has a loud voice. we have a number of people covering this story this morning. >> 7:00 some of the testimony begins. 7:30 we'll hear from the police who resigned amidst this scandal and continue to follow the latest. his days in news corp may have been numbered and this may be before the scandal broke. the company is considering replacing murdoch with its current chief operating officer. many insiders say if things don't go well on the stand today that move could be pushed ahead quickly.

reuters reporting that police have arrested andy coleson, the former media chief for david cameron. shutting down under intense pressure. >> they are accused of breaking into voice mails of celebrities, of politicians. even relatives of the london transit bombing victims. prime minister david cameron calling for two separate investigations into the alleged hacking. >> this is a wake-up call. over the decades on the watch of both labor leaders and conservative leaders, politicians and the press have spent time support not confronting the problem. it's on my watch, the music has stopped, and i'm saying loud and clear that things have got to change. >> the tabloid is part of the media empire run by rupert murdoch but sunday will be its last edition. >>> casey anthony will have to spend nine more days in jail before she gets her his taste of freedom. she was sentenced yesterday to four consecutive years behind bars for lying to police. but with time served, her release date was set for july 13th. now, that's been pushed back to july 17th. the orange county corrections department did som