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and abc's jeffrey kofman has the latest. >> reporter: unlnls you live in a cave, rupert murdoch's media empire probably touches you every week. fox tv. fox news. "the wall street journal." 200 newspapers around the world. here in britain, he dominates the media landscape. but this has been a bruising week for rupert murdoch. >> there is a firestorm that's engulfing parts of the media, parts of the police, and, indeed, our political system's ability to respond. >> reporter: it's been one stunning revelation after another. murdoch's headline hungry reporters allegedly hacking cell phones of murdered children. victims of terror attacks. even bribing the queen's security officers. and this, allegations that reporters hacked the voice mails of 9/11 victims in new york. prompting calls today for a justice department inquiry. >> it would be, you know, in my mind, probably the most invasive and perverse use of a victim's information in the final moments of their lives. >> reporter: none of this is a surprise to actor hugh grant, a long-time target of the tabloid. today, he talked with "nightlin

>> jeffrey kofman outside scotland yard in london tonight. jeffrey, thank you. i want to bring in abc's dan abrams, our legal analyst. dan, great to see you. explosive week ahead with murdoch in front of british parliament. is there any chance that what he might see could be l lally incriminating. >> reporter: it could be. there's a right against self-incrimination there. i don't expect him to invoke it. remember, he's showing up voluntarily. he's a u.s. citizen. he doesn't have to go. but he is still going, it seems, to appear in front of parliament. >> we're watching the dominos fall. we saw so many more again today. when does this become concerning here on this side of the pond, criminal charges? >> reporter: well, we already know there's an fbi investigation. but there could also be another investigation into something called the foreign corrupt practices act, which is a 1977 law which effectively makes it illegal for a company or an executive to bribe a foreign official, in this case, it would be one of those police officers. >> all right, dan abrams, thank

and jeffrey kofman is in london tonight. jeffrey? >> reporter: good evening, david. behind me, the editors and the reporters who put together "the news of the world." the final edition of the paper has gone to bed after 168 years. the end came so quickly. it's the end of the run and the end of the world. "the news of the world." no one here saw it coming. the 270 staff that will be losing their jobs tomorrow, shell-shocked. >> i'm so proud of my colleagues who have continued this week in absolutely trying and personally and professionally difficult circumstances in such a professional manner. >> reporter: they may be professionals. but this week, we learned that some of the reporters and editors who occupied this office just a few years ago, were habitual criminals. illegally hacking thousands of cell phones, in search of juicy tidbits for sensational stories. and bribing police for scoops. tonight, the owner of "the news of the world, media baron rupert murdoch, is flying to london, to try to contain the damage. >> we've already apologized. >> yeah? >> we felt that

so, let's go to jeffrey kofman in london, who tells us about the huge scandal caused by tabloid reporters. jeffrey, good evening. >> reporter: and good evening, to you, diane. you know, this is truly epic. media babaon, rupert murdoch 's papers thrive here. but tonight, his empire rocked by a scan doll of its own. one that defies all sense of human decency. "the news of the world" for years the biggest english language newspaper in the world is dead. a desperate move by the world's biggest media tycoon to contain a scandal that has stained his entire global empire. >> nothing to say at this stage. >> reporter: rupert murdoch, whose reporters relentlessly hound people for stories was in sun valley, idaho, today, where was he tight-lipped. >> i have nothing to say at this stage. >> reporter: that was left to his son and heir. >> we now know that the practices that are being discussed that we're talking about here are such that we've fundamentally breached a trust with our readers. >> reporter: nothing, it seems, would stop can the news of the world's" pursuit of a sensational headline. in 2

abc's jeffrey kofman now on the tabloid world out of control. >> reporter: when andy coulson was editor of "the news of the world," the paper he ran destroyed people's lives. >> i can't say anymore at this stage. >> reporter: arrested this morning, facing charges of perjury, bribing police, hacking people's phones in search of scoops. andy coulson is also uncomfortably the former spokesman of british prime minister david cameron, who, today, scrambled to distance himself. >>>> the press freedom does not mean the press should be above the law. >> reporter: but "the news of the world" was, which is why the famous and the powerful in britain have feared and loathed the tabloioifor years. case in point? remember when sarah ferguson was caught selling access to prince andrew? >> 500,000 pounds when you can, to me -- open doors. >> reporter: and this headline. when prince harry angerer his girlfriend by visiting a strip club. how did the paper know? they'ves dropped on the prince's voicemail. >> you have to get the story at all costs. you go and do anything. >> reporter: even breaking the law

abc's jeffrey kofman she's us how it happened. >> reporter: james murdoch was about to answer a question when suddenly on the left a man with a paper plate covered in shaving cream takes aim at rupert murdoch muttering, you greedy billionaire. the woman in pink, wendi deng slapped the assailant who falls backward. a self-described comic was arrested this. is the day rupert murdoch and his son did not want to see. they were summoned to answer questions about the scandal that rocked the country, allegations of widespread criminal activity by reporters at murdoch's now shuttered tabloid "news of the world." listen to this for a man infamous for his arrogance and ruthlessness. >> this is the most humble day of my life. >> reporter: rupert murdoch born in australia, age 80, an american citizen, presides over a global empire with $33 billion in revenue. he's the boss, but the buck does not stop witith him and he is n planning to step aside. ? because i feel the people trust trusted, i feel i'm the best to -- >> reporter: at his son james, an american citizen, runs company operations in europe

and abc's jeffrey kofman in london tells us what happened today. jeffrey? >> reporter: well, good evening, diane. you know, you don't see this very often. a corporate titan, the head of one of the largest media companies in the world, a man with a reputation for ruthlessness, on bended knee, asking a family for forgiveness. but that's exactly what rupert murdoch did today. his life's work now stained by scandal. his grip on global empire in peril. a contrite rupert murdoch came to say he is sorry, as onlookers screamed "shame on you." >> did you apologize? >> of course i did. of course i did. >> reporter: it's the first time murdoch has spoken since this scandal exploded. >> i'm the founder of the company. i was appalled to find out what had happened. and i apologized and i have nothing further to say. >> reporter: with that, the titan turned and left. he was apologizing to the parents of milly dowler, who disappeared in 2002. it was revealed the girl's voicemail had been hacked and messages deleted by a reporter, giving the dowlers false hope that she was

jeffrey kofman, abc news, london. >>> we're going to turn now to the brits making headlines here. prince william and his new wife kate. they are on their way back to london tonight after a whirlwind weekend in california. they are now cleaning up the royal red carpet. abc's bob woodruff followed them every step of the way. great to see you again, bob. >> reporter: you, too, david. you know, they have been very busy once again. but this time, i have to say, a little bit more humor and some surprises. on this final day of their north american tour, a greeting fit for rock stars. >> oh, my goodness. >> i shook his hand. so exciting. look at them shaking. >> reporter: and then, for the first time on the trip, the duchess responded to a reporter's question. >> how is your first trip to the u.s.? >> really enjoyed it. thank you very much. >> just to get that little glimpse, that little snapshot from her saying, i'm so happy to be here, was probably very satisfying for the americans. >> reporter: it's been an action-packed three days in california. william wowed the polo fans santa barba

jeffrey kofman has more now from london. >> reporter: just because they own tv networks doesn't mean the being on them but rupert and james murdoch will be stars of their own version of "dynasty" as they are grilled live by outraged british politicians. >> the worry is not just about the company he built. he didn't inherit this company. he built it and he's also got to worry about his children who he assumed would and wanted to succeed him. >> reporter: that is looking increasingly unlikely. james murdoch was being groomed to take over from his 80-year-old dad but he could now face criminal charges. hedmits to paying two high-profile victims a million dollars to keep quiet. this scandal is nothing lessss than an earthquake sending tremors to the highest levels of power in britain. the people of this country shocked to learn that for the last 30 years murdoch and his executives have been dictating policy to the politicians and the police. the murdochs certainly had the here of britain's prime minister. in 15 months david cameron has had 26 meetings with murdoch executives, more than t

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abc's jeffrey kofman is in london. >> reporter: the british, they are so polite. except when it comes to politics. >> the reply that he sent -- >> reporter: that's david cameron, the british prime minister. >> you know -- >> reporter: today, facing 138 withering questions from the opposition. >> he just doesn't get it. >> reporter: no american president gets subjected to a verbal pounding like this. >> he should apologize for the catastrophic error of judgment he made. >> reporter: the issue? is cameron too close to rupert murdoch and his now tainted company? >> it shows my staff behaved entirely properly. >> reporter: they call this a debate. >> order! >> reporter: but to the speaker of the house, it is, well, childish. >> calm themselves, keep on an even keel. it's better for their health and for the house. >> reporter: this scandal may not seem like a big deal from afar, but it's already left the prime minister scrambling, the head of scotland yard has resigned and today, a scathing parliamentary report accuses rupert murdoch's company of deliberately trying to

jeffrey kofman, abc news, london. >> thank you, jeffrey. >>> thousands of concert fans in canada got for. take a look at this. a strong thunderstorm hit the ottawa blues fest as the band cheap trick took the stage. as that stage collapsed, the band had already run for cover. the musicians are fine and amazingly just one fan suffered a broken leg. >> you can't even explain how something like that can happen. and one person hurt, wow, amazing. >>> well, the star of the u.s. women's soccer team put their loss in the world cup final into a bit of a simple perspective. abby wambach said, "we were so close." the team lost to japan last night in one of the most dramatic finals in the competition's history. abc's deborah roberts reports now from frankfurt. >> it is japan! >> reporter: it was an ending no one expected. a team that came out of nowhere and became world champions. before the shattering loss, american fans were confident. >> it's going to be 3-1. honestly, i think it's going to be 3-1. >> reporter: this victory was supposed to belong to the americans. athletic and powerful, they

abc's jeffrey kofman is in london this morning with the story. y, what is he saying and where? >> reporter: well, take a look. this is his own "times of london." "we are sorry." this is in all the national l newspapers here. actually to say quite appropriately, it's a contrition mission. you know, i was trying to figure out what analogy works here, is it shakespearian but it actually reminds me of "a christmas carol" when ebenezer approaches tiny tim and tries to atone for his past sins. >> now, this situation is likely to get worse for murdoch before gets better. on tuesday he's going to be dragged before the british parliament. how bad is that likely to be for him? >> reporter: i think that the entire world on cable tv will be watching. this is going to be quite the spectacle. he did not want to go. in fact, he said he wouldn't go and then realized that was yet another public relations fiasco. he and his son james and rebekah brooks, his shamed lieutenant, will all appear before parliament, and i think you're going to see the modern-day version

jeffrey kofman starting us off in london. i want to bring in dan abrams this morning. dan, always good to see you. >> good morning. >> you know, jeffrey points out the empire is huge and not only newspapers overseas but here, as well, everything from "american idol." it will be rupert's performance. how carefully will he choose his words? can anything he says be held against him? >> it's crucial and i'm sure that he's been prepped for this. expect that, of course, he's going to say he didn't have any knowledge of what was happening. but still how he answers these questions are going to be important. how respectful is he? does he recognize how serious this is? and, of course, all of the members of parliament or at least some of them are going to want to do finger wagging at him so they can publicly say that they are taking this incredibly serious. >> the finger wagging famous across the pond but back here almost unthinkable a week ago that his own corporation would be considering, considering replacing him based on his performa

jeffrey kofman reports from london. >> reporter: "news of the world," for years the biggest english languagespaper in the world is dead. a desperate move by the world's biggest tycoon to contain a scandal that has stained his entire global empire. >> nothing to say at this stage. >> reporter: rupert murdoch was in sun valley, idaho, where he was tight-lipped. >> i'm not making any comments. >> reporter: that was left to his son and heir. >> we now know that the practices that are being discussed that we're talking trusteached a trust that we've with our readers. >> reporter: nothing, it seems, would stop "news of the world" pursuit of a headline. they were riveted by the story of milly dowler who vanished. the paper listened to her voice mail deleting old ones to make room for new ones that gave her parents and polic hope that she was alive. false hope. she was later found murdered. >> appalling. absolutely appalling. >> it's outrageous. it really is outrageous. >> reporter: and there's more. six years ago terrorist bombings in london killed 52 people. on this anniversary, grieving families

and jeffrey kofman was there watching it all in london. jeffrey, good evening. >> reporter: and good eveving to you, diane. that's right. it was a very public family drama. a dynasty given a chance to salvage its reputation and scrambling to save itself in destruction. rupert murdoch and his son couldn't stop apologizing throughout the afternoon.. but while we heard a lot of humble pie, there was a different kind of pie that stole the show. james murdoch was about to answer a question when suddenly on the left, it was so fast, it was hard to see what happened. but look again. slowly. a man with a paper plate coverer in shaving cream takes aim at rupert murdoch, muttering, "you greedy billionaire." the woman in pink, murdoch's 42-year-old wife, wendi deng, slaps the assailant, who falls backward. the man, a self-described comic, was arrested. this is a day rupert murdoch and his son did not want to see. they were summoned to answer questions from politicians about the scandal that has rocked this country. >> mr. murdoch, do you have anything

jeffrey kofman, abc news, london. >> what a drama. and kind of an ironic twist. night, actually a fake story put out rupert murdoch was dead. that again was a fake story. a little irony there. >> a bit of irony as the story continues to grow and grow. i think the scope of it continues to get larger. >>> also this morning, there is word from denver that the faa is investigating an air traffic controller who's accused of being drunk on the job. the veteran controller was tested two weeks ago. investigators say that he was more than six hours into his eight-hour shift. he was found to have twice the legal limit of alcohol in his system that's allowed for controllers on the job. at controller is now in rehab. he can return to his job if he completes a program and continues to progress. >>> lawmakers in the house are expecteded to vote on a tea party-backed plan to address the nation's debt crisis today. president obama has already said he would veto the deal if it passes. he is against it because it calls for some deep cuts to both medicare and social security. still

abc's jeffrey kofman has the latest from london. >> reporter: just how low would they go? that's the question being asked about a scan toll at britain's biggggt newspaper, the racy tabloid "news of the world." the paper has admitted hacking the phones of celebrities but it is now accused of hacking the cell phone of missing 13-year-old millie doweler in 2002, deleting messages and giving her parents and police false hopes that the girl was still alive. when london was hit with terrorist bombs in the 2005 that killed 52 people, the "news of the world" allegedly hacked the phones of victims and their families in pursuit of yet more exclusives. >>>>t's a violation, isn't it. i still don't know what i think about it. other than, i'm really angry. >> reporter: the paper is the profitable flagship of media mogul rupert murdock's massive holdings in britain. he also owns "the sun," "the times," "the sunday times" and on tv, sky news. "wall street journal," "the new york post"" and fox news. no politician dared challenge him. >> we're talking about murder victims, potentially terr

jeffrey kofman has the latest now from london. >> reporter: rupert murdoch rushed to london to rescuemedia empire he has spent his life building. as he arrived he was reading the last issue of "the news of the worlrl" the paper that began his overseas expansion 42 years ago. the best-selling tabloid was on the newsstands here for the last time. >> if you've done wrong you face the consequences. >> reporter: the paper brought down by criminal excesses of its reporters in search of sensational stories. in the eyes of many it was brought down by management that still refuses to acknowledge its own role. that is rebecca brooks. who dined with murdoch. she was editor while many of the crimes were committed. 270 people lost their jobs this weekend. she stayed. but murdoch may lose a huge business deal. his plan to take 100% control of britain's b sky b satellite network. this scandal has highlighted what many in britain have considered to be a near monopoly by murdoch companies. 40% of the papers sold in this country, including the fabled "times" and "sunday times" are owned by murdoch comp

abc's jeffrey kofman has the latest. this continues to unfold at a massive rate. >> reporter: it sure does, elizabeth. this really is an earthquake here. look at "the daily telegraph." good-bye cruel world. "hacked to death." this rocked his media empire to the core. today, the first casualty arising from the scandal andy coulson arrested. he was editor of "news of the world" while reporters broke the law. incredibly he became chief spokesman for britain's prime minister. he too tarnished by this scandal. >> is it time you say you screwed up? >> he had resigned from "news of the world." he said at the time he didn't know what was happening on his watch. he should have known what was happening on his watch. he paid the price and resigned. >> reporter: while 200 will lose their job, not rebecca brooks even though she was the other editor. >> it was reported she offered her resignation and in this situation i would have taken it. >> reporter: her outspoken boss, rupert murdoch, who is in idaho this week is standing by her.

abc's jeffrey kofman has the latest. jeffrey, this continues to unfold at a massive rate. >> r rorter: it sure does, elizabeth. this really is an earthquake here. take a look at the morning papers. "the daily telegraph." good-bye cruel world. rupert murdoch owns a bunch of papers here. "the times," "the sun." "hacked to death." this has rocked his media empire to the core. today, the first casualty arising from the scandal, andy coulson, arrested. he was editor of "news of the world" while reporters broke the law. incredibly, he then became chief spokesman for britain's prime minister. he, too, now tarnished by this scandal. >> is it time you say you not only take responsibility? but that you screwed up? >> i made a decision to employ andy coulson. he had resigned from "news of the world." he said at the time he didn't know what was happening on his watch. he should have known what was happening on his watch. he paid the price. he resigned. >> reporter: while 200 journalists will lose their job, when the paper folds this

abc's jeffrey kofman is in london this morning. good morning. >> reporter: a frail rupert murdoch and his defiant son tried to save the family empire but a report released this morning accuses their company of deliberately trying to block an investigation. not good news for rupert murdoch or the prime minister here. the murdochs and their empire are not out of trouble yet. far from it. the report released this morning finds their company deliberately tried to thwart a police investigation into the "news of the world" widespread phone hacking and police bribery. this morning it is the prime minister's turn in the hot seat. at this moment he is the focus of an emergency session of parliament. trying to contain the scandal that has led to calls for his resignation. >> people desperately want us to put a stop to the illegal practices to ensure the independence and effectiveness of the police and to establish a more healthy relationship between politicians and media owners. >> reporter: this follows a carefully rehearsed effort from the

jeffrey kofman is following the unfolding story from london. >> reporter: "the news of the world." the biggest english language newspaper in the world, is dead. a desperate move by the world's biggest media tycoon to contain a scandal that has stained his entire global empire. >> nothing to say at this stage. >> reporter: rupert murdoch, whose reporters relentlessly hound people for stories, was in sun valley, idaho, where he was tight-lipped. >> i'm not making any comments. >> reporter: that was left to his son and heir. >> we now know that the practices that are being discussed that we're talking about here were such that we fundamentally breached a trust with our readers. >> reporter: nothing, it seems, would stop "the news of the world's" pursuit of a sensational headline. in 2002, britain was riveted by the story of 13-year-old millie dowler who had vanished. this week it was revealed the paper listened to her voice mail, deleting old messages to make room for new ones. that activity gave her family and police hope that she was alive. false hope. millie was later found murdere

abc's jeffrey kofman reports from london. >> reporter: just before gordon brown became britain's primeinfant son had cystic fibrosis. that private family trauma was suddenly splashed across the front page of the murdoch-owned "sun." brown says it was devastating. >> in tears. your son is now going to be broadcast across the media. sararaand i were incredibly upset about it. >> reporter: and another murdoch paper, "the sunday times," was allegedly using known criminals to hack into brown's tax records, his bank accounts. brown says it was a vendetta because murdoch didn't like his politics. >> i'm shocked. i'm genuinely shocked to find this happened. because of the links with criminals, known criminals, who are undertaking this activity. >> reporter: even the royals were targeted. there are damning allegations that murdoch management knew years ago "news of the world" had breached state security but didn't tell police. it's alleged the paper's royal reporter asked the editor for $1,600 so he could buy a top-secret directory called the green book which contains all the confidential phone

jeffrey kofman, abc news, london. >> and this story is not stopping. a report today that says murdoch's company tried to deliberately block a criminal investigation into the phone hacking at "news of the world." here we go again. >> interesting to hear denial saying they knew absolutely nothing about this because most people that have worked with rupert murdoch say he's heavily involved with every aspect of the different papers and television, that sort of thing. it raises eyebrows that they could say, have no idea. >> these stories, scoops, photos. no questions ever about how did you get it? we'll see where it goes. >> very questionable. >>> stocks overseas have follnged wall street into higher territory this morning over word there could be a federal debt deal. the plan is being offered by a group of senators from both parties. it would seek an immediate $500 billion down payment on cutting the deficit. they're working towards cutting $4 trillion over 10 years. >> my hope is that we can start gathering everybody over the next couple of days to choose

no doubt happy to leave london jeffrey kofman, abc news, ind.nly n n over yet though as this continues to grow and we're investigating issues here. people, perhaps 9/11 victims, who might have had their cell phones hacked. >> it's scary. i don't know how things get done in the british parliament, judging by the atmosphere there. and the number two, headlines in australia this morning, now that country may be stepping into the investigation to see if phone hacking occurred on their turf. so this thing's snowballing out of control. >> that's for sure. agreed. although you can just hop in yourur private jet and head hom >>> a busy miami sidewalk is not exactly where you'd expect to see a slithering boa constrictor. >> but there it was, five feet long in all its glory. the city's'sntivenom unit moved in and scooped the thing u up. officers say the reptile turned out to be pretty friendly and more importantly, nonvenomous. >> yeah, that's the part that i liked. this kind of snake if you can believe it is native to madagascar. animal control officials

for "this week" jeffrey kofman abc news, london. >>> so in this incredible story of politics, power andl allegation, where does rupert murdock go from here? joining me, michael wolff, and the man 0 who owns the news, inside the secret world of rupert murdock. nina totenberg, and steve brill, founder of journalism online and courttv. his book is called" class warfare." thank you all for joining me. let me go to you first. rupert murdock finally got on a plane and went to london. what is he hoping to do? >> we should note how long it took him to get on to plane. rupert is not a reach-out guy. he's quite the opposite. it's all about meeting power with power. so he's in very awkward and difficult territory for him. he's got to negotiate. he's got to soothe. he's got to explain all of the things that he doesn't do well. so he's there now, i think trying to get -- >> is "news international" at risk? >> i don't think "news international" is at risk. these are good assets. what is at risk is management of this company by people named murdock. >> that's interesting. steve brill, you had an inter

here's jeffrey kofman. >> reporter: for a man that doesn't like to admit his mistakes, this has been a bruising week. for rupert murdoch. >> i was appalled to find out what happened. >> i apologize. >> he apologized to the family of millido you letter. the teen was murdered in 2002. last week it was revealed the girl's voice mail was hacked and messages deleted by a reporter in search of sensational stories. giving the do ydowers false hop she was alive. after the meeting with murdoch, the family emerged with their lawyer that described the tone as humble. >> he did apologize many times. >>. >> reporter: that was friday. yesterday, mororapologies. this ad appeared in every london newspaper. the news of the world was in the business of holding others to account. it failed when it came to itself. we are sorry. signed rupert murdoch. rarely has a man so powerful had to publicly eat so much humble pie in a single week. last sunday, he shut down his profitable tabloid here "the news of the world" after it was mired in allegations of criminal activity. wednesday he bowed to public pressure

jeffrey kofman has the latest and joins us from london. good morning, jeffrey. >> reporter: that has moved to a whole new with today's alleletions that not one but three murdoch papers breaking the law, sometimes use hardened criminals to break stories. it was the most personal and private family matter, in 2006 just before gordon brown became britain's prime minister they found their infant son had cystic p cystic fibrosis. >> they would mow me thehehad this story about fraser's medical condition and told me they would run it. >> reporter: how did that happen? >> in tears. >> another scandal about it. and with it for the first time it is spreading beyond "news of the world." allegations that murdoch's son own the awe dust sunday times look broke the law to get stories. >> i'm wondering if you can help me. that call to a law office who was said to be an accountant working and looking at the financial times looking for some dirt. the questiroyal's reporter cliv goodman asked for carne from andy soleson to buy the green book which contains al

jeffrey kofman joins us this morning from london. good morning. >> reporter: good morning to you. it's incredible. this scandal unfolding with lightning speed. rupert murdoch's number two arrested. it's fair to say, the air around murdoch himself is getting awfully thin. will where will all of this stop? rupert murdoch has often said he looked on rebekah brooks as his daughter. just a week ago, he indicated that saving her was as important to saving his global empire. but this crisis well beyond his control. brooks, former editor of his now-closed "news of the world," became so toxic, on sunday, she resigned. on sunday she was arrested and questioned about alleged criminal activity while she was at the helm. >> it's very unusual for somebody to be arresteteby appointment on sunday. there could be operational reasons for that. maybe they're going to arrest somebody else today. >> reporter: as the news tightens, the focus turns to his murdoch's son, james. he is accused of trying toay $1 million to a soccer star. rupert murdoch hoped that james would take over the family empire that

jeffrey kofman has more for us. good morning, jeffrey. >> reporter: good morning to you, robin. here's the final issue of "the news of the world." this scandal did not die with the death of the newspaper. all eyes on a huge american company, news corporation. rupert murdoch rushed to london to try to contain the damage. while he arrived he was reading the last news of the world. the paper that helped establish what is now a $33 billion global empire. the paper he decided he had to kill. his empire now under siege because in its pursuit of sensational stories, "the news of the world" crossed the line into criminal activity. the public has lost faith. >> i think it does need to go for what it's done. >> reporter: rebekah brooks was editor a decade ago when many of the alleged crimes were committed. she gets to keep her job. and so does james murdoch who runs the british arm of the company. he, too, said it wasn't his fault. >> i acted on the advice of executives and lawyers with a completion investigation. >> reporter: as s e ultimate boss, james could face prosecution under u.s.