tv CBS Morning News CBS May 23, 2012 4:00am-4:30am PDT
breaking the silence. the head of the secret service to testify for the first time about the colombian prostitution scandal. . facebook fee aceco. did some investors have inside information. blood money. outrage after an auction house says it's selling a sample of ronald reagan's blood. >> this is not baseball cards that are being sold on the internet. this is the blood of the 40th president of the united states, ronald reagan. this is the "cbs morning news" for wednesday, may 23, 2012. and good morning, everybody. so good to be with you. i'm terrell brown. the director of the secret service will speak publicly for the first time about last month's prostitution scandal. mark sullivan will tell the
senate committee there was no security breach. and that the agents' reckless behavior was an isolated incident. susan mcginnis is in washington this morning. good morning to you. >> reporter: good morning. sullivan is going to tell congress today that these men were not informed about the president's plans and that they were going to be informed after this night of partying. he'll also tell them these men are not representative of the 7,000 workers at the secret service. the head of the secret service agency heads to capitol hill today. mark sullivan will answer to congress about the prostitution scandal involving some of his agents. 200 secret service personnel were in colombia in april, preparin for the president's visit there. of those, 12 were investigated, 9 were found to have been involved, 3 cleared of wrongdoing. >> the first question i pose to the director was, was there any breach to the president's security in this instance? and the answer was no.
>> reporter: sullivan has prepared a full dispense of his agency. in remarks to the hearing he says, clearly the misconduct that took place on april 11, 2012 in cartagena, colombia, is not representative of our core values or the high ethical standard we demand. not everyone on capitol hill is convinced it was an isolated incident. senator collins issued a statement saying the numbers involved as well as participation of two senior supervisors make me believe this was not a one-time event. rather, the circumstances unfortunately suggest an issue of culture. cbs affiliate kiro in seattle reported last year agents partied nightly at an el salvador strip club preparing for the president's visit. some allegedly hired hookers as well. they will tell the committee
today they fully investigated those claims but found no evidence. now, "the washington post" is reporting four of these employees who were dismissed are fighting the dismissal. they say the secret service tolerated this misbehavior for years and they say they're being made scapegoats because of this scandal. terrell? >> susan mcginnis in washington for us, thank you so much. former first lady nancy reagan is fully recovering from broken ribs. she was injured when she fell at her los angeles home about six weeks ago. a spokesman says she has started to schedule a few appointments. nancy reagan is 90 years old. mitt romney is in the home stretch in the race for the republican nomination after sweeping kentucky and arkansas primaries. cbs news estimates romney now has 1,073 delegates. he just needs 71 more to clinch the gop nomination. he's expected to pick those up in next week's texas primary. on the campaign trail, democrats continue to argue romney's experience at a private equity firm, bain capital, is of no value in the oval office. here's vice president joe biden speaking in new hampshire yesterday.
>> that no more qualifies you to be president than being a plumber. >> the romney campaign dismisses such criticism and says it's an affront. egyptians get to do something today they haven't done in some 30 years. elect a new leader in a free election. voters began casting their votes in first round of presidential elections this morning. they have a choice of 13 candidates, islamists, secular and holdovers from the regime of hosni mubarak. it's a two-day vote. no outright winner is expected with a runoff scheduled for next month. elizabeth palmer has our report. >> reporter: here's something egyptians have never seen before. a real presidential candidate. in a genuine political race that has huge implications for the middle east. this is amr moussa, once egyptian foreign minister under
hosni mubarak and a diplomat well known in washington. we caught up with moussa, now 75 years old, on the campaign trail. in contrast to other devoutly religious candidates, he's running on a secular platform. you're not even bothering to try to appeal to religious egypt? >> no, no. >> reporter: even in this majority muslim country, his strategy may pay off. one fan forced his way onto the bus to tell moussa, those fundamentalists are driving us crazy. you'll make a great president. in some cases the enthusiasm or you might say frenzy is for the candidate himself. but some is just the excitement of a real democratic choice after 30 years of dictatorship. egypt is really gripped by the drama of this election. in fact, people are talking of little else, especially whether to vote for the old guard or the new, and crucially whether to vote for an islamist candidate.
like dr. abdel abolfotoh, who used to lead islam brotherhood, but he's an islamist with a modern twist. he quit the brotherhood to run as an independent to attract the broadest possible support. we need to bring all egyptians together, he told us, to achieve real democracy. at a rally in cairo, he didn't just talk about a broad base, he paraded it. on stage his inner circle included fundamentalist muslim, christian, sports idols, women and a pop singer, who launched into the national anthem and was joined by a crowd desperate to believe tolerance can repair. their battered country. elizabeth palmer, cbs news, cairo. today in baghdad critical negotiations over iran's nuclear intention. representatives from iran and six world powers including the u.s. are scheduled to hold talks. they want iran to stop producing high level enriched uranium.
the u.n. announced yesterday a deal was reached allowing inspection of iran's nuclear site. "cbs moneywatch" time on a wednesday. more fallout from its ipo, facebook, and jpmorgan chase on the hot seat. wendy gillette is here in new york with that. good morning to you. >> good morning. markets overseas slid ahead of the eu summit. tokyo's nikkei dropped 2% to a four month closing low. hong kong's hang seng lost more than 1%. facebook stock plunged on tuesday. shares were down more than $3 and have lost more than 18% since they first went on sale last friday. and now there are questions surrounding the company's initial public offering. morgan stanley is under investigation for how it led facebook through the process. regulators want to know if the banks told a select group of clients that one of its analysts had cut his estimates for facebook before the ipo. >> it's either everyone or no one. if there were voices of skepticism, especially seeing how things have gone, everyone should have heard those.
>> morgan stanley said it followed the same procedure for the public offering as it does for all ipos. jpmorgan chase, federal regulators testified before congress about the bank's multibillion dollar loss. they say they're looking at jpmorgan's first quarter report to see if they're truthful. jpmorgan chase's ceo initially downplayed concerns about the risky trades, but then said he was dead wrong after the bank announced massive losses. news greece could leave the euro sent stocks lower. the dow rallied but still finished down one point. the nasdaq lost eight. if the government allows the bush-era tax cuts to expire and green lights automatic spending cuts, americans could find themselves in another recession. that's according to a study put out by congressional budget office. the cbo says if those economic changes go into effect on january 1st, the economy could shrink more than 1% in the first half of next year.
this year mazda and fiat announced plans to work together to develop a new car. good news for ford. the u.s. carmaker had its credit rating raised for the first time in seven years. that allows ford to reclaim assets it used as collateral, including its iconic blue logo. lots to watch this morning. >> thank you so much. take a quick break. coming up on a wednesday morning, presidential controversy. a vial said to contain blood residue from ronald reagan is being auctioned off. this is the "cbs morning news." save up to 60% plus, get an extra 10% off! with huge instant savings, no interest financing, and free delivery and haul-away. only at sears.
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up for auction these days from masterpieces of art to old dinosaur skeletons. this week a british auction house is offering a controversial and many believe a tasteless item. a blood sample drawn from ronald reagan in 1981. bob orr has the story. >> reporter: the anonymous seller says the vial of blood was drawn from president reagan the day he was shot 31 years ago. the online auction posting notes the blood was to be examined for lead level. a five-inch glass tube carries the president's name and the last name of his doctor, aaron. the label has the designation thor, meaning mr. reagan was a thoracic patient with a chest wound. and it's stamped with the date of the shooting, march 30, 1981. the overseas auction house says traces of dried blood are clearly visible in the tube and bidders are interested. the price is approaching 9200 pounds, nearly $15,000. the executive director of the reagan presidential foundation. >> i don't know that a reaction
could be anything other than outraged. this is not baseball cards that are being sold on the internet. it's the blood of the 40th president of the united states, ronald reagan. >> reporter: the seller says the vial of blood has been in his family for 31 years. his mother, then an employee of the lab, brought it home about a week after the assassination attempt. the auction house has offered no proof that it actually is president reagan's blood. historian douglas brinkley says that's just one of the problems. >> taking the presidential emorabilia notion to a very bizarre new level. >> reporter: very personal memorabilia is nothing new. facial hairs were plucked from abraham lincoln after his death and then worn in his honor. hair clippings from jfk sold for $3,000 in 2010. just the year before a locket of hair from george and martha washington brought $7,000. brinkley says this is different. does this have any historical
value at all? >> i think it has zero historical value. so, i think this is going to create an outrage and hopefully the public columner will be such that an item like this will be pulled off the market. >> reporter: so far that's not happened but there are potential legal questions about whether or not the sale might break medical privacy laws. bob orr, cbs news, washington. >> and it's just a bit creepy, too. coming up, your wednesday morning weather. in sports, it's good to be the kings. l.a. taking it into overtime against phoenix in its bid for a shot at the stanley cup. flavor gets an exciting twisth with our new chef's picks from lean cuisine. mushroom mezzaluna ravioli, chile lime chicken, ranchero braised beef. we're tossing, roasting and mixing our favorite farm-picked ingredients to create dishes on the culinary cutting edge. at lean cuisine, we're designing must-have-meals with no preservatives. look for the new chef's picks in our latest collection. lean cuisine.
here's a look at the forecast. thunderstorms, 75 in new york. thunderstorms, 86 in miami. sunny, 76 in chicago. same deal in dallas, 92 degrees. partly cloudy, 76 in los angeles. let's check your national forecast. showers and scattered hunderstorms will extend from new england to the carolinas with some heavy downpours in south florida. the northern and central plains will also have some showers and thunderstorms. some severe. showers and mountain snow will spread from the pacific northwest to the northern rockies. windy, dry conditions will raise the wildfire threat in the southwest and central rockies. in sports, the nba playoffs and the heat getting hot. dwyane wade and lebron james led the way as usual. wade making a circus layup in the third and taking a turnover to set up lebron james for a jam. james wound up with 30 points.
wade, 28. heat scorch pacers good for a 3-2 lead in the eastern semifinal. to the nhl now and a huge night for the los angeles kings. game tied 3-3 in overtime. the kings dustin penner with a bouncing puck and solid it into the goal leading to a 4-3 win over the coyotes to clinch their western conference championship since 1993. the kings will play the winner of the east for the stanley cup. that starts one week from tonight. to baseball now. l.a. angels at oakland. the angels got off to a fast start, scoring three in the top of the first inning. and in the third, albert pujols slammed a no-doubter into stands his third homer in a week, putting l.a. up by four. c.j. wilson with eight shutout innings with seven strikeouts. angels beat the a's 5-0. in philadelphia, bryce harper tripled in the third inning driving in two runs for the nationals. rick ankiel led off the fourth with a solo homer. washington beat the phillies 5-2.
the nats' sixth straight win playing in philadelphia. finally, a taste of olympic glory for singer will i. am. of the black eyed peas. beginning with a stroll while tweeting his fans with the torch in his hands. he joined the olympic torch relay through a town in southwestern england, breaking into a jog as fans cheered from the roadside. he called it a surreal moment. london games, by the way, begin july 27th. when we come back, wedding crashers, giant twisters, make a surprise -- are you kidding? a surprise appearance at an outdoor ceremony in kansas but they don't slow down the bride and groom. and groom. our town had a "brilliant" idea. support team usa and show our olympic spirit right in our own backyard. so we combined our citi thankyou points to make it happen. tom chipped in 10,000 points. karen kicked in 20,000. and by pooling more thankyou points from folks all over town, we were able to watch team usa... [ cheering ]
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here's another look at this morning's top stories. ahead of the secret service will testify on capitol hill today about last month's prostitution scandal in colombia. mark sullivan will tell the senate committee there was no breach of security and the misconduct was an isolated incident. former first lady nancy reagan is slowly recovering from broken ribs. mrs. reagan injured herself about six weeks ago when she fell in her los angeles home. new jersey child welfare officials are looking for the parents of a young boy who was trapped in a washing machine. the boy's father playing a game put his son in the machine and shut the door. the machine started spinning the child around. the frantic father got an employee to pull the plug. they grabbed the unharmed child, apparently, and ran. authorities say they want to make sure that child is okay. a mystery that may never be solved. the case of the urban mountain lion. no one knows how a 100-pound male reached downtown santa monica unnoticed. police tried to tranquilize him
but he escaped and was shot. officials call the cat's death unfortunate but necessary for public safety. a newlywed couple in kansas had a wedding like no other and they have the pictures to prove it. take a look at this. the uninvited guests at the farm last saturday, tornadoes rolling across the horizon. it being kansas, everyone stayed calm. and after taking their vows, the newlyweds got in place for unique wedding photos. the bride, the groom, the kiss and the twister. speaking of unusual pictures, how about the fresh prince of wales. yes, that is the heir to the british throne, prince charles, getting a disk jockey lesson at toronto youth center yesterday. he's sensitive about scratching with his hand on the vinyl but now you can call him deejay chuck. coming up after your local news on "cbs morning news," an update on the john edwards trial. i'm terrell brown. this is the "cbs morning news." [ male announcer ] if you have yet to master the quiet sneeze...
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it's hailed as new era in space exploration. the first commercial spacecraft, the falcon 9 rocket was launched yesterday morning from cape canaveral, florida. its on its way to a rendezvous with the international space station carrying supplies for six crew members. the rocket was built by the spacex company and founder elon musk said the successful lift-off was like winning the super bowl. musk recently sat down with scott pelley. >> i think with the dawn of a new era, i think it's going to be very exciting. what we're hoping to do is push the envelope and provide a reason for people to be excited and inspired to be human. >> reporter: elon musk is 40 and worth about $2 billion. as a teenager, he wrote computer games in his native south africa before heading to the u.s. and
starting paypal. >> ladies and gentlemen, mr. elon musk! >> reporter: he built an electric car company called tesla but his passion is space. now, tell me, what's that big piece right up there? >> that's the second stage of the falcon 9 rocket. >> reporter: musk's california factory is filled with young engineers and nasa veterans. he plans to cut the cost of space flight by 90%. >> the odds of me coming into the rocket business, not knowing anything about rockets, not built anything, i would have to be insane if i said the odds are in my favor. >> reporter: why even begin? >> when something is important enough, you do it even though odds aren't in your favor. >> reporter: we came across a dragon capsule, like the unmanned one now headed to the space station, and the first thing we noticed were the windows. people don't put windows in cargo ships. >> that's right. exactly. >> reporter: that tells me this was never intended to be only a cargo ship. >> no, the dragon was always designed to carry astronauts. >> reporter: eventually it could
hold seven seats, but there are critics, including space heroes, who doubt the safety of a private company. >> now is time to overrule this administration's pledge to mediocrity. >> reporter: neil armstrong, james kerner, have both testified against commercial space flight and the way you're developing it. and i wondered what you think about that. >> i was very sad to see that because those guys are -- yeah, those guys are heroes of mine so it's really tough. >> reporter: they inspired you to do this, didn't they? >> yes. >> reporter: did you expect them to cheer you on? >> i was hoping they would. >> reporter: what are you trying to prove to them? >> what i'm trying to do is to make a significant difference in space flight and help make space flight accessible to almost anyone. and i would hope for as much support in that direction as we can receive.
>> scott pelley. also aboard the spacex falcon 9, the ashes of james doohan. he played scottie on "star trek" and afters of more than 300 people were jettisoned about ten minutes after the launch. coming up on "cbs this morning," the fbi's new public awareness campaign against cyber espionage. this is the "cbs morning news." i'm terrell brown. ,,,,