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tv   The Situation Room With Wolf Blitzer  CNN  April 20, 2010 5:00pm-7:00pm EDT

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sillicate and all the problems. >> to be in the ash layer as briefly as possible. >> good stuff. chad, you're so good at explaining this stuff, as i always say. here is someone else who is so good at what they do. this is like my old pal oval teen today. >> thanks, rick. happening now, we'll take you inside the revolving door between wall street and washington. it could be key to the fate of financial reform and the fraud charges against goldman sachs. the supreme court says this dogfight video is an example of free speech. why the justices struck down a law designed to stop the marketing of animal fighting. and the u.s. military faces a new enemy, volcanos. the eruption in iceland is creating fallout as far away as the war zone in iraq. wolf blitzer is off today. i'm candy crowley and you're in "the situation room." in the towering corporate
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headquarters of goldman sachs, executives might be celebrating today if the wall street giant wasn't facing civil fraud charges and being held up as a poster child for financial reform. the investment bank reports its first quarter earnings doubled to $3.5 billion. well above expectations. but a conference call to tout those gains turned into a grilling about the company's legal and pr problems. federal regulators accuse goldman sachs of misleading investors who turned complex mortgage-based securities that were expected to fail. a top lawyer for the bank told reporter s today that the firm would never intentionally mislead anyone. in the midst of this mess we confirm that goldman sachs is getting advice from a former obama administration insider. we want to bring in ed henry. what can you tell us about this? what's the white house's reaction? >> they're trying to stay away from this because they don't want it to look like they're too close to their former aide here. greg craig.
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he was a white house counsel. deep ties in the democratic party going back to the clinton administration. you'll remember he played a key role in the clinton impeachment trial. also back in the obama campaign back in 2008, he broke with hillary clinton. many thought he might endorse her in that pain. instead went with barack obama. and was a really pivotal sort of spokesman for the candidate, pushing back on talk shows and whatnot. but on the flip side he fell out of favor here as the president's lawyer. really clashed with the white house chief of staff rahm emanuel on a lot of complex legal issues. and so i can telo goldman sachs tell me they're kind of scratching their heads over why the company has brought greg craig on because he was somebody pushed out of the job as white house counsel here at the white house, so they're not sure that he's really going to have really good ties here to help the company right now. >> on the other hand, i guess, ed, you could look at it and say the positives for goldman sachs
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is that this is a man who knows the inner workings of washington even if he happened to tick off some people and he's a good lawyer. it could work in their favor. >> it could. because you're right. that's what's very positive about greg craig. he has a sterling reputation in this town as somebody who really understanding the intersection of the legal and the political. that dates back to the clinton impeachment trial. but on the other hand, this administration actually put in some tougher restrictions on lobbying and the revolving door you spoke about a moment ago. so greg craig and other former white house aides can now no longer lobby this white house for two years after they leave. this obviously falls under that window. so even if greg craig still has deep ties here -- and as you noted somebody with a sharp mind and can reach out here --e can't have direct contact with people like rahm emanuel and other senior aides here for two years. so how much will those contacts really help goldman sachs right now? it's a big question.
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>> it is a big question. knowing how the legal system works, it may be two years until he needs to talk to them. now we want to take a fresh look at the revolving door between wall street and washington against the backdrop of this goldman sachs case. our lisa sylvester is here. it's really hard to keep the players straight as to where they're working at the moment. >> it pretty much is, candy. there no question goldman sachs has friends in high places. a number of bigtime players have swung through the revolving door. first the former goldman ceo ast henry paulson. he left to become bush's treasury secretary. jon corzine became a u.s. senator and later new jersey's governor. robert rubin also ran goldman, then left to become treasury secretary under president clinton. then went back to work for citigroup and was an economic adviser to president obama during the campaign and a mentor of mr. obama's top current
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economic aides. more goldman alums were currently in high positions in washington. representative jim hines currently sits on the house financial services committee. overseeing financial companies. hines is a former goldman vice president. gary gensler is the current chairman of the u.s. commodities futures trading commission and his office is expected to have a big hand in the future regulation of the derivatives market. he's also a goldman sachs alum. and many people might recognize this man, neel kashkari. he was the point man on t.a.r.p. funds, helping to dole out some. on top of this, there are more than 40 former congressional staffers and federal agency employees who registered in 2009 to lobby on behalf of goldman sachs. that's according to the center for responsive politics. >> i guess the basic question is, what does this portend for
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future regulation of any of these markets? i guess in particular goldman sachs. but for the rest of them as well. >> when you take a look at this, candy, it really does speak to the power and influence of washington firms. even as congress is considering new regulations of the industry and to try to prevent another financial meltdown. when you have regulators, a member of congress, advisers to the president who are all goldman sachs alumni, it raises the point that you just raised which is just how serious are the regulators going to be in imposing and enforcing new rules to rein in wall street? >> and does goldman sachs appear to be the largest one that everybody goes at because it's the gold standard? >> they definitely are. when you look at it, it is not just the number of connections, it's how high placed they are. when you talk about former treasury secretaries and you have, with gregory craig, you have a number of people who are leaving government, then turning around and advising goldman sachs. representative richard gephardt,
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former s.e.c. chairman arthur levitt. that revolving door has been active between washington and goldman sachs and wall street in general. >> bipartisanship at last. >> yes, exactly. a good way to look at it. >> thanks so much lisa sylvester. a u.s. supreme court ruling today on videos that many americans would probably find disgusting. ahead, the justice' surprising take on a case involving animal fights. plus the mysterious death of the president of a major league baseball team. british airways says the first flight has arrived at london's heathrow since uk's air space reopened. we'll tell you how much longer some airline passengers stranded in britain will have to wait to get home. the volcano fallout isn't over yet.
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something i have always wanted to do because jack cafferty is here with the cafferty file. i get to introduce him. jack. >> i am so delighted to welcome you to our little gab fest here. as i was saying during the break, you lend a touch of class to everything you touch at this network. it's a pleasure to have you here in "the situation room" as the host. >> i'm coming back, i promise, after that. >> good. >> what you got today? >> the people of arizona are fed up when it comes to illegal immigration, and they ought to be. almost 20% of those trying to enter the state of arizona illegally from mexico come with a criminal record. it's one reason why senators john mccain and jon kyl are calling for 3,000 national guard
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troops to be deployed to arizona's border with mexico. they also want funding for an additional 3,000 u.s. customs and border agents, a double row border fence, increased mobile surveillance and hardship duty pay for border patrol agents. but that's not the only reason, at least for john mccain. can you tell that he might be in danger of losing his senate seat this november? where have all these clowns in washington been on this issue since 9/11? virtually nothing has been done to secure this nation's borders because democrats want the mexican vote and republican donors want the illegal aliens to work for them. president obama insists that his administration is committed to securing the borders and has taken unprecedented steps over the past 14 months. what a load. the fact is it's unlikely anything will be done about illegal immigration because it's an election year. for the reasons laid out above. but arizona's taking measures into its own hands. the state senate has passed a tough new immigration law that
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will force police to arrest people who can't prove they're in the country legally. now, critics say that would lead to racial profiling. well, so what? the state's governor has five days to either veto the bill or sign it into law. do the right thing, governor. here's the question. what should be done about border security if almost 20% of illegal immigrants entering arizona from mexico have criminal records? go to cnn.com/caffertyfile. >> i think you hit on something, jack. we always used to say there's like ten stories that we do and they keep going around and around. this one never goes away, does it? >> nine years since 9/11 and the government has done virtually nothing about this. nothing. >> i can't wait to hear your answers. we'll talk to you later. a ruling from the supreme court today upholding the right to sell alarming animal fighting videos. our jeanne meserve is here. we do want to warn our viewers that this is fairly disturbing video. >> reporter: yeah, and we won't show you the worst of these
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videos because they're just too hard to stomach. but despite the deeply disturbing nature, the supreme court ruled today they are protected speech. they are called crush videos because that is exactly what they show. women in stilettos stomping and mutilating small animals to give sexual thrills. a law intended to stop their sale and marketing banned videos of extreme animal cruelty including dogfighting. but the supreme court voted 8-1 to strike it down saying it was too broad and infringed on the first amendment right of free speech. >> i think it's important that the decision was written by the chief justice. it gives it even added emphasis as a reaffirmation of basic values that the first amendment protects even unpopulist speech. >> for centuries the american pitbull terrier has reigned supreme as the gladiator of the pit. >> reporter: the particular case considered by the court involved dogfighting videos made by bob
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stevens of virginia. though he characterized them as educational, he received a 37-month sentence for selling them. he tells cnn the court's decision is exactly what he was hoping for. his lawyer condemns animal mistreatment but says video is a tool to stop it. how is it we learn about problems of animal cruelty? how do we learn about baby seals being clubbed? we see pictures, pictures galvanize us to action. >> reporter: the humane society of the united states has used undercover video to improve the treatment of cattle and inspection of meat. but the group says that for-profit videos of animals being tortured and killed is a different matter. >> if you sexually abuse a child in your basement, if you're not caught, should you be able to sell the video? of course not. that's child pornography. that's forbidden. the court says that's not protected speech. and the same principal who asupply to crush videos and
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dogfighting. >> reporter: they hope to see a bill introduced within the next week which will more narrowly target crush videos. but until the bill becomes a law some expect an increase in their production and sale. >> i think disgusting was the right word. president obama is reaching out to possible supreme court nominees. in our strategy session we'll talk about his omgs and whether he's likely to satisfy republicans. also, the latest on the airline gridlock caused by that volcano in iceland. will the situation get worse before it gets any better? and a death in the civil rights community. she may not be a household name, but she was an historic figure. for the aches and sleeplessness in between, there's new motrin pm. no other medicine, not even advil pm, is more effective for pain and sleeplessness. new motrin pm.
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lisa sylvester is monitoring some of the other top stories right now. what do you have? >> new glimmers of hope for travelers grounded by the ash cloud from iceland's erupting volcano. british airways says the first
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flight has arrived. more than half of european flights were cleared to fly for first time today. scientists worry that increased seismic activity at the volcano could lead to another eruption. one of the teens charged with bullying a massachusetts 15-year-old who committed suicide is now pleading not guilty to a drunken driving charge. the 18-year-old was arraigned today, then released on personal recognizance. he was arrested yesterday with a blood alcohol level of 01.5. five others have also been charged in weconnection with th case. the president of the colorado rockies team has died. 48-year-old keli mcgregor was found unconscious in his salt lake city hotel room this morning. medics were unable to revive him. the cause of death is unknown. now, the rockies are scheduled to play the washington nationals here in d.c. this evening. the united states has lost a major civil rights movement
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pioneer. dorothy height died today at the age of 98. she work ed tirelessly along wih act vis like martin luther king jr. helping to organize the movement. she also headed the national council of negro women for 40 years. not long ago she shared her hope for the younger generation. >> many times when people are going through open doors now, i wish that they could hear the stories of how those doors got opened. >> height had been hospitalized. what an amazing life, candy. >> as you know, i was with a group of women a couple of weeks ago and dorothy height was in the hospital at that time. they were literally holding vigil around the clock with her. she influenced the lives of so many young black women who are now middle aged and older. i mean, her reach has just been really tremendous. >> yes, and that's the thing
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that we're hearing again. all the e-mails that i was getting, everybody celebrating the life and her contribution. so nice that we've taken a moment to recognize her. >> a life well worth noting. thanks so much, lisa sylvester. appreciate it. we told you goldman sachs raked in big bucks in the first quarter, but is it profiting on its past donations to political candidates? we'll follow the money trail. and will embattled republican charlie crist try to rescue his senate bid by quitting the gop? we'll tell you what he's saying. the mother of a young american facing terror charges in pakistan is speaking out. she's defending her son and blasting the way he's being treated. i was like, yes, this works... [ male announcer ] only rogaine is proven to regrow hair in 85% of guys. puhh puhh puhh putt and that's it. [ male announcer ] stop losing. start gaining. [ male announcer ] visine®-a is clinically proven to relieve all your worst eye allergy symptoms. it goes right where you need it,
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you're in "the situation room." happening now, there are five american students jailed in pakistan for allegedly plotting terror attacks. now the mother of one is speaking out with a chilling account of what she says happened to him. and many of you get a lot of it in the food you eat every day. salt. and it could be putting your health at risk. we'll tell you what one agency wants to do about it. wolf blitzer is off today. i'm candy crowley and you're in "the situation room."
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back to our lead story. investment giant goldman sachs is a prime target for renewed anger at wall street right now. it's defending itself against civil fraud charges as the senate nears a showdown over financial reform. a lot of questions are being raised about the politics of all of this. and whether goldman sachs campaign donation will have any influence on the outcome. we want to bring in our senior congressional correspondent dana bash to tell us about goldman's donations and whether -- you always think how could it not help but influence things? >> it's no surprise probably that goldman sachs and its employees have tried to influence politicians, but it may surprise you given the fact that this is what this do, they're investor, that one of their investments doesn't seem to be paying off. and that was in candidate barack obama. check this out. a list back here of barack obama's top pac contributions, that's from pacs and employees of big organizations and companies.
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check out number two. number two, goldman sachs. $994,795. that's how much they tried to give to -- that they did give to barack obama. and it's not ending. in 2010 congressional candidates, $332,375. to democratic candidates. they obviously run congress. so they're getting a lot more than republicans. but they're getting a good amount. 190,000 and change to republicans. today on capitol hill, a lot of the discussion is whether or not these lawmakers and candidates should be giving back their cricks particularly in light of allegations of fraud against goldman sachs. so far only one republican candidate mark kirk from illinois is saying, yes, other democrats who i asked, they said no. >> today something that a lot of them hadn't actually thought about until this morning. >> it was pretty clear. >> so let me ask you something. the democrats have been all over republican leader mitch mcconnell for having a secret
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meeting with wall street types, and now it turns out he wasn't the only one out there having meetings. >> that's right. republicans in response have been yelling, wait a minute. what about the democratic leader, rather, harry reid, the fact that they've been raising -- that harry reid was actually in new york recently in the past couple of months and went to a fund-raiser where in new york on wall street with wall street exectives. we wanted to ask harry reid. what about that? we tried at least. take a listen. >> first of all, everything that we have done in this legislation is about as transparent as it can be. i think that it's pretty clear that i'm leading the effort to rein in wall street. so i'm going to make sure that in this legislation, i do everything within my ability to make sure that banks aren't too big to fail. >> did you have a fund-raiser? >> thanks, everybody. >> you heard me at the end there trying to ask him again about the fund-raiser. that's the second time i asked. the first you saw him reading
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from his talking point there's in response to the whole issue of wall street and cracking down on wall street. afterwards an aide did give me a little bit more information that he did go to a fund-raiser in january. he raised $37,000 mostly from goldman sachs executives. but the point that his aides are making inside reid's office is that might be nice, but essentially he's taking the money and running because he's taken the money but he's coming back to washington saying i'm going to crack down on wall street. and they make the point in democratic circles that republicans not so much. >> talked a lot yesterday about all the -- i think it was like only one in four actually trust the u.s. government. i think it's probably stories like this that we're losing that one. >> bingo. >> just because there's so much intertwining lives and money. >> wait till tomorrow. more than 1500 lobbyists are coming to washington to lobby on wall street. >> never a dull moment. >> no. >> thanks so much. now, let's turn to a republican whose stock is plummeting within his party anyway. florida governor turned u.s. senate candidate charlie crist.
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his republican primary opponent mark rubio has a big advantage in the polls and in endorsements from top republicans, and crist now acknowledges that he may try to salvage his candidacy by running as an independent. >> i can tell you i'm getting a lot of advice in that direction. and so i'm a listener. so i'm certainly listening to it. >> pretty much like a yes. our senior political analyst gloria borger joins us. marco rubio has really gained a lot of steam. what are republicaning telling, asking, pushing crist to do? >> very simply, get out, endorse marco rubio, and please end this embarrassment for us. you know? i was talking to a lot of republicans today, candy, it is hard to find one of them who says, oh, yeah, yeah have him run as an independent. we think that would be very good for the party. in fact, our political editor obtained a memo that was written by a top staffer at the senate campaign committee to republican
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strategists. and it said that crist needs to do the right thing and that he has zero chance of winning the primary. so if you happen to have any contact with crist, tell him to get out because he's not returning senator john cornyn's calls, the man who runs the campaign committee. >> which we're not surprised by. >> no. why should he? right. >> what happened here to crist? >> well, there's the micro and there's the macro. let's talk about the micro, which is the campaign itself. first thing that went wrong for him is that $787 billion stimulus package. remember that, candy? that he supported. so you had every republican voting against it except for a couple. then you had him supporting it. and remember that hug of barack obama? those hugs can get those guys in trouble. >> the pictures. >> then to make matters worse -- and this may be a hint of what's to come -- he went against republicans in his own state and vetoed an education bill that
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ended tenure and allowed merit pay for teachers. so they're really mad about it including former governor jeb bush who hasn't come out and endorsed anyone. people say he's going to endorse rubio. but he was very much a big supporter of this education bill. >> you sort of got the feeling with that last act, vetoing that. >> right. >> that this was charlie crist going, you know what? i veto just to make everybody that disappointed him angry. >> right. and that's the macro. the macro story he is here that a year ago these guys went out and recruited crist. and a lot of other establishment republicans. because the republican party was all about proving it had a pulse after barack obama's election. and then lo and beloelhold, the party comes along and establishment candidates don't look as good as they used to look. marco rubio is a very attractive candidate in that state who has done very well campaigning against a governor who wanted to establish an air of inevitability about his own campaign. and it didn't work so well for
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him. and so here is where you're seeing the influence of the sort of anti-establishment tea party come into effect. and, you know, causing some trouble for the republican party. >> i think here, too, it always strikes me old and new. >> sure. >> new always wins. charlie crist ends up looking like the guy who had been there forever. marco rubio who has been in politics for a while but relatively young age looks like the yuck goung guy. >> once you start hugging barack obama who is growing less and less popular, then that creates a problem and people don't like when they're told, okay, charlie crist is the inevitable nominee and he's going to run. not so much. exactly. >> all right, gloria. thank you so much. appreciate it. a check of the top stories is next. plus the u.s. military battles volcanic ash. with 4g from sprint,
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lisa sylvester is monitoring some of the other top stories. what have you got? >> hey, kandzy. a new snap shot about how the swine flu epidemic affected pregnant women. 56 expectant mothers died from the virus last year.
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the cdc says quick treatment with flu medicine saved the lives of many other pregnant women stricken with the new strain of swine flu. washington, d.c. residents will have to put their hopes of getting a vote in congress on hold again. the house has abandoned plans to take up a d.c. voting rights bill this week. house majority leader steny hoyer says the legislation probably won't come up this year. a major sticking point, the bill was linked to a provision that would have effectively eliminated the district's tough gun control laws. and happy 90th birthday to supreme court justice john paul stevens. he celebrated the milestone today with his colleagues who, incidentally, also throw him a party when he retires in a couple of months. he's is second supreme court justice to park his 90th birthday on the court. oliver wendell holmes was the old ets sitting justice. president obama reviews possible successors to justice stevens, americans disagree
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about the kind of candidates that he should consider. our new cnn opinion research corporation poll shows 25% of those surveyed want the president to nominate a liberal justice. 37% favor a moderate, 36%, you see there, they want him to pick a conservative. i don't think that's going to happen as far as picking a conservative. >> i think we should take odds on that. we'd probably both bet the same thing. it wouldn't be a worthy bet. >> the question is whether a moderate or a liberal. in there there's a little wiggle room. >> i'll go on the liberal side of moderate, but we'll see. president obama is set to meet with republican leaders to discuss the upcoming supreme court vacancy. will he take their advice? or has he already made up his mind? and you likely get a lot of it in the food you eat. it's salt. what do you think?
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i think i'll go with the basic package. good choice. only meineke lets you choose the brakservice that's right for you. and save 50% on pads and shoes. meineke. a new poll shows that half of americans support giving the government new powers to regulate wall street. joining me to talk about that and more in today's strategy session i'm joined by two political contributors. democrat paul begala and
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republican -- i'm sorry, ed. i looked up and thought, wait a second. we've only talked five minutes before this. ed rollins. sorry. i was looking at those numbers. that may be what distracted me. only 50% say the government ought to be giving new powers to regulate wall street. i mean, i think that's kind of low. i would expect it to be pretty high. >> i think it's low today. i think if this was starting a year ago and all the things that occurred on wall street, it would be much higher. what's happened in the course of the last year, health care, general motor, people are getting concerned about government takeovers. in this economic environment, people don't understand what this means. they think it may affect the economy. and if that affects the economy, then they're not very happy about it. >> paul, what's the message? let's say they don't get this. let's say they just have stalemate on capitol hill. what's the message that let me switch hats with you, that republicans take into the
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november elections about this? >> i think this actually if it fails, it hurts republicans a lot. obviously it hurts democrats. they want to reform wall street. but for republicans, think about this, the republican base hated the obama health care bill and it passed anyway. even republicans mostly but solid numbers of republicans want wall street reform. if you're a republican, you don't like big government and you don't like wall street. so you can sit there and say, wait a minute. they passed the bill, i didn't want health care, then they killed the bill i did want, wall street reform? they've got to pass this bill. the democrats know that. the democrats won't make it any weaker to get republican support. i was on the hill yesterday talking to people in the congress. there's no appetite among the democrats to weaken this bill. they want a tough, strong wall street regulatory bill. the democrats think they have the better issue. >> paul is right. there are -- americans don't much like wall street these
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days. they don't much like government interference. but why, why would republicans be against this at this point? do you think they're positioning themselves for a better bill? or do you think they want the politics of it? >> i don't think there's any great political gain, to be perfectly honest. this is one of those things that you do what is right. republicans at this point in the time don't feel they've been involved in the process. they're afraid this will hurt the economy and not necessarily benefit it. it is not like health care, as paul said, at the end of the day being on the side of wall street as opposed to being on the side of main street is not the best position to be in today. but they feel that they're now the opposition party, this is not a good bill, this will damage the economy long term and they'll be against it. >> what do you make of greg craig showing up as the lawyer for goldman sachsachs? he held many positions in washington, was recently in the obama white house as a white house counsel. what is that about? what do you make of it? >> he's a friend of mine.
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i worked with him in the white house. obviously he and i both worked and won the big impeachment fight with bill clinton. yet, i have to say, this doesn't help barack obama. doesn't look good for barack obama. it's perfectly legal. let me make that clear. greg craig has a right to earn a living and goldman sachs has the right to the best defense money can buy. but in terms of politics, this is the sort of thing that barack obama campaigned against. the revolving door from the white house to goldman sachs. i do think it's a little tarnish on the obama brand at a time hen they don't really need it. >> i totally agree with you, paul. i don't think it helps goldman sachs. it looks like goldman sachs is trying to get somebody inside to go fix a problem that they might be able to fix by the legal battle. washington is a town full of great lawyers. greg craig is a great lawyer, but he doesn't need to be in this fight right today. >> let me switch over to the supreme court just because we're told that president obama's been privately reaching out to some of his choices or possible
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choices, and that there will about, in fact, maybe a pick by early may, that the president wants to reach out to republicans. but we have these new cnn opinion research polls that show 6 in 10 americans think obama will pick a liberal but only 25% think he should pick a liberal. who and what is he going to pick, paul? >> he's going to pick a liberal. come on. at least certainly a democrat, somebody in the mainstream of the progressive part of government. that's as it should be. elections have consequences. 53% of it, we the people, voted for barack obama to make him our president. i think the model frankly is when ed rollins is working for reagan or george w. bush, these presidents were conservative. they nominated the most qualified and most conservative people they could find. so you have scalia, you have chief justice roberts, people with impeccable credentials who i think are way outside the mainstream because they're conservative. that's what barack obama has to do, that's what he will do.
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he's running the traps. i hope he's actually listening, but i think he's already got his pick in mind and he's just now kind of doing the stations of the cross here. >> that may be the operative phrase, running the traps. he's going to talk to republicans about this? >> well, he may. i think at the end of the day, i'm always hoping that you get your souter. you appoint someone who you think is a conservative and you get your left wing liberal. right now you'll pick someone that will be the fourth vote, but who will be the intellectual giant that can compete with the roberts and the alitos and scalias who are real conservative intellectuals? that's the key thing. you have someone whoever you pick that can draft documents that in the future, as young political science students can read it, understand it and see which direction the country is going. >> crystal ball time. i need a yes or no from both of you. will there be a big republican fight of whoever gets thrown out there by the president?
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>> there will be a fight. i don't think -- unless it's an extremist with a big record, you know, i think there's going to be maybe a third of the republicans not voting for whoever he pick, but i don't think it will be one like the borg fight or anything like that. >> republicans have to hold 40 to filibuster a supreme court nominee. i don't think they'll be able to do that. so i don't think there will be a massive fight because of the reason that ed states. the most liberal member of the court being replaced with probably a slightly less liberal. not much of a game changer. >> thank you very much. >> that fifth vote. >> that wasn't yes or no, by the way. and republican strategist ed rollins. thanks so much. stand by for the cafferty file. jack will be back in a moment. if you're like most american, you probably eat too much salt. should the federal government try to stop you? and the cnn express makes a new stop in kansas. [ beeping ]
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jack is back. joining us again with "the cafferty file." so, now you have the answers.
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did you get a lot of responses? >> several thousand, candy. >> whoa. >> yeah, this is a very emotional issue with folks and we got a lot of response. the question is what should be done about border security if almost 20% of illegal immigrants entering the united states from mexico have criminal records? sterling writes in phoenix, we in arizona are tired of paying for health care for illegal immigrants. they clog our emergency rooms. this tough new state law will do more to contain medical costs in arizona than anything obama or the congress have done. jay writes, also from arizona, what's the big deal? as a white arizonan i carry the state-mandated driver's license, a federally mandated social security card and proof that i carry automobile insurance. i'm required to show these things anytime law enforcement requests it. the segment of society that's howling about the potential for some real immigration oversight is the far left latino whiners who don't want to be profiled simply because massive numbers of their illegal voters to be
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might be asked to leave the country that they have entered illegally. john writes, what do i have to carry to prove i'm a natural-born u.s. citizen if i travel to arizona? do i knee to get a passport to travel in my own country? can they arrest me if i don't have proof of my birth? know driver's licenses and social security cards prove nothing. how many innocent people will they stuff in jail because they don't have a passport? aaron writes, i am beside myself with frustration over watching previously prosperous neighborhoods being turned into bordertown slums by illegal immigrants who have absolutely no investment in this country. for them, america is but one thing -- a cash cow. and sam writes from california, i lived in a small town on the eastern slope of the high sierra for 30 years. it was beautiful. we didn't lock our doors. there was no crime. until the illegals came to town. they are now over half the total population, living 20 to a house. now there is crime. the hospital's about to go out
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of business because of the cost of providing care to the women who bear five or six children as quickly as they can. it is horrendous. illegals have taken advantage of america, and it must stop now. very emotional issue. if you want to read more about it, you can go to my blog, cnn.com/caffertyfile miss crowley? >> i think you proved my theory, everybody's theory, probably, that people say things in an e-mail that they probably wouldn't say to you sitting on tv. >> well, you know, i don't know. they -- they talk to me in what i'd like to think are pretty honest tones on both sides on most of the issues, but this particular issue has a lot of people fed up, for won't of a better phrase. the government won't address it and there are communities that have been destroyed economically and socially by the influx of people who are shouldn't be here. >> now they are mad at me for talking to you, jack, so i have to go. >> if you'll have me.
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>> i'll have you, thanks. it's wreaking havoc in the skies. and now the thick icelandic volcano cloud is forcing the u.s. military to transport injured troops from one war zone to another. we'll explain. aflac is not how do i fit it in my company's budget insurance.
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they are alive and well in kansas, and some say critical to helping build the state back from recession. our tom foreman looks at the success of small businesses "building up america." >> reporter: in a shower of sparks and hot metal, terry and debbie shrawg are building success at cannonball. ten years ago they opened shop to make one of terry's inventions, a fully automated hay loader and they are turning them out as fast as they can. why do you think your business is doing well when so many others aren't? >> well, i think, number one, is we have an excellent product. and we have personal contact with almost everybody we sell to. >> reporter: but there's more.
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the shrogs could not get a loan when they started, so they paid for everything. that kept them from getting too big, too fast, or sinking money into buildings or help, and it prepared them for hard times. so, you didn't have the loan money to work with, but you also didn't have the debt to be saddled with. >> that's correct. with us, since we've always worked out of our pocket and always made our cash flow work, i think we weren't hit with that when all the banks started tightening up on their money. >> reporter: at wichita state, the small business development center says such homegrown success stories are critical to this state's rebound. because, david may says, only a tiny fraction of new jobs come from out-of-state companies moving in. so, what makes the difference between a small business that succeeds and one that does not? >> i think the biggest thing is probably customer focus. and it really starts with, i think, identifying a real need
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that exists and going after it and meeting that need and really taking an outside-in approach to the market. >> reporter: he should know. back in the late '50s two of the school's graduates borrowed $600 to start pizza hut. and 20 years later, sold it for $300 million. cannonball is not that big, but it provides 18 full-time jobs with $3 million in annual sales. and -- >> if i was 20 years younger, i'd double the size of it. >> reporter: it could be that big. you have that much business? >> oh, yeah. i could double it. >> reporter: for a farm equipment maker in the middle of a recession -- >> come on, beauty! >> reporter: -- not a bad harvest. people here have absolutely felt the downturn, candy, but you hear that mantra everywhere you go, the simple belief that a good idea, hard work, and a careful expansion of your market can make you say, what recession?
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candy? >> our tom foreman in greensburg, kansas, travel on, tom, thanks. you're in "the situation room." happening now -- airliners are sent out on flights to europe in the hope they'll be able to reach their destination. still, there are ominous signs the ash clouds are not going away anytime soon. one of wall street's biggest names turned into the biggest bankruptcy in u.s. history. federal officials cite that as a textbook case for financial reform, but are shady accountings here to stay? and americans eat more than twice the salt they need, boosting the risk of strosks and other ailments. should the government set limits on sodium? wolf blitzer is out today. i'm candy crowley. welcome to our viewers in the united states and around the world. world. you're in "the situation room." -- captions by vitac -- www.vitac.com half of europe's flights are back in the air today, and more
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than two dozen planes headed for london in the hope they'd be able to land there. that effort may pay off with british airspace now set to reopen. but we haven't seen the last of that massive ash cloud spewing from a volcano in iceland. we want to go to our meteorologist, chad myers, at the cnn weather center in atlanta. chad, so things could get worse before they get better, or are they getting better? >> well, they're getting better than the first eruption that went up 40,000 feet. now, all of these eruptions are only about 18,000 feet. what's the difference? well, if you get it up to 45,000 feet, then you're in the jet area where the jets actually fly. if you get it in the, let's say, the 15,000 feet area, you can fly over that ash cloud. so, we'll have to keep watching. where's the ash now? well, it's in the right side zone. it's even all the way to maine. maine you should wake up tomorrow and see an amazing sunrise. that's what it's going to do for basically the u.s. and a lot of europe. just get great sunrises and sunsets. but, the bad part now, there are new concerns about the icelandic
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v vulcanologists, a volcano 12 miles away from we'll call it e-15, because i can't pronounce it, 12 miles away. and the last time e-15 erupted, katla, c-k-a-t-l-a, also erupted and sometimes that can be a bigger eruption than the e-15, can you imagine two simultaneously erupting and all of that ash flowing over europe? it could be months of travel interruptions, maybe even years, the last time the volcano e-15 erupted, it kept spewing ash for two years, candy. >> wow. the things that happen you never actually even thought about. let me ask you, we had the planes that took off for heathrow not knowing if they could land, a flight i'm not sure i'd be on. we are hearing that heathrow is open. are they landing? >> they are landing right now. heathrow did open up about an hour ago. and i can kind of show you what happened here. the map behind me timed out while i was standing here waiting to talk to you, so i
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can't show you what the planes are doing at this point in time. i don't have anybody helping me here. so, the planes are landing from heathrow and gatwick. it's kind of an odd time for planes to be landing there because, you know, it's almost, what, 11:00, midnight there, but they're getting planes in there anytime they can and trying to get people out as well. so, the airspace is open. they haven't seen any problems with the planes that did land. so far, no reports of any ash in the cockpit. no smell of anything in the fuselage and no ash so far in the jets. and there's the plane that came in. it was ba, flight 84 from vancouver, british columbia, it took 10 hours and 40 minutes to get from vancouver because they had to circle over ireland and over the isle of man for a couple of hours waiting for the british airspace to open up. >> wow. i feel like we should clap. thanks so much. meteorologist chad myers. we appreciate it. >> i'm sure everybody clapped. >> we'll see if we can get a person to help you with your map. thanks, chad. the dense cloud of ash is forcing the u.s. military to
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detour medevac flights from one war zone to another. we want to go live to cnn pentagon correspondent, barbara starr. barbara, obviously the volcano is having an impact on everything, including the military. >> you know, it really is, candy. the u.s. may have the strongest military in the world, but right now, it is still mother nature running the show. >> reporter: joanne and greg are now on their way to see their son andrew, a marine shot in afghanist afghanistan, now finally on his way home via iraq, because of the volcano erupting in iceland. >> i just want to see him. so, it's been a long time since thursday night. >> reporter: the u.s. is now sending some troops wounded in afghanistan into this hospital in iraq because it can't fly them to the primary medical facility in germany. the pentagon worries if there's a major battle in afghanistan, it won't be able to treat all the wounded. >> to have that capacity ready
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at our hands means we have to move those wounded soldiers. >> reporter: the flow of troops and cargo into the war zone, also slowed down. the secretary-general of nato insists security across europe hasn't been affected by the volcanic ash cloud. >> i can assure you that the icelandic volcano does not have any affect -- effect on our operations nor our -- neither our operations nor our territorial defense of allied member states. >> reporter: but the u.s. air force is now inspecting every aircraft it has in europe to check for damage. look at these pictures from the finnish air force, ash and rocks melted onto to their fa-18 engines after they flew.
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air bases in britain, italy and germany have suffered shutdowns. spanish military bases scrambled to help. as britain sent warships to bring home stranded citizens, experts say governments have to plan for what may seem totally improbable. >> what i can say i can think of an instance where you planned for a volcanic disruption, but think of hurricanes, terrorist attacks, there are all sorts of contingencies both the military and the civilian federal government plan for. >> what could be next? chad was just talking about the westerly flow that might be bringing ash to the east coast of canada and the united states. i can tell you that the north american aerospace defense command which is responsible for the air defense of canada and the u.s. now keeping a very close eye to see if the ash is coming this way. candy? >> barbara starr at the pentagon. also keeping a very close eye on things. thanks, barbara. five american students from the washington suburbs have been
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held for more than four months in pakistan, where they face terror conspiracy charges. their trial resumes next week. the mother of one of the americans says her son went through harsh interrogation in pakistan. our brian todd is here with that story. brian, you talked with the mother? >> i did. and this has been a highly charged case from the very start. five young men, all americans who simply vanished last fall and showed up in pakistan. they now could face life in prison for planning terrorist attacks against americans. and now the mother of one of them is speaking out, having some strong allegations about her son's treatment. >> somebody -- >> reporter: an explosive claim from the mother of a young american now on trial in pakistan. amal khalifa just returned from seeing her son, ramy zamzam in jail there. she says he gave her a chilling account. how did he say how he was and being treated? >> he said they were watching tv and eating banana and 30 men armed with guns and with the gun in our faces and they took us
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comer. we don't know where. as soon as we get there, they beat the hell out of them. they tortured them. >> reporter: khalifa said her son told of her of being kept for more than a day without food and water and -- >> and they jammed him into a chair and somebody stand behind him, and as soon as he fall asleep, somebody hit him so he didn't fall asleep. >> reporter: it was that treatment that got four of the five to confess to terrorism-related charges. the lawyer says the charges are fabricated. khalifa said her son never confessed. we asked an official at the pakistani embassy in washington about the claims that her son was tortured and beaten, the official emphatically denies the claim. he says while they've been in custody in pakistan, the five young man have had regular consular access to u.s. officials there and that there have been no claims of beating or torture. so we called an official at the u.s. embassy in islamabad. the official said, yes, they had regular access to the young men, but because of privacy laws they
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cannot discuss their condition or anything that they've said. ramy zamzam, a promising dental student at howard university went missing last fall along with four other young men in the d.c. area. they were later arrested in pakistan. zamzam left a video behind. what's on the video? >> he's talking about how the relationship between the human being should be. not only between muslim and christian or jewish, human being is human being. everybody has to love each other. >> that's at odds with what muslim leaders in washington who had seen the video said last december after the young men were arrested. at the time, those leaders said they were, quote, disturbed, uncomfortable with what was on the video. one of them said it seemed like a farewell message. the fbi has the video now and miss khalifa said fbi officials have told her there's nothing incriminating on it. the fbi would not comment on that to us, candy. >> and, brian, the mother also talked about what her son told
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her before he left. >> she has said something about that. she said that he left before he left he was going to a conference in baltimore. he has since told his parents he was going to the wedding in pakistan of one of the other young men. he didn't say that at first, because he didn't want them to worry because he was going to a dangerous place. the pakistanis >> buying any of that. >> regardless of what he did or did not do, you can't help but feel sympathy for the mother in this position. brian, thanks very much. immigration or security? a toughed proposed immigration law in arizona is the subject of national uproar. supporters say it will cut crime. critics say it will lead to racial profiling. and a warning about school lunches from a most unlikely group. it said the foods kids eat may be making america less safe. okay, class, our special guest is here -- ellen page. hi, ellen! hi, ellen! hi, ellen! hi, ellen! we're going on a field trip to china!
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wow. [ chuckles ] when i was a kid, we -- we would just go to the -- the farm. [ cow moos ] [ laughter ] no, seriously, where are you guys going? ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! ni hao! [ female announcer ] the new classroom. see it. live it. share it. on the human network. cisco. ♪ [ male announcer ] designed to function the way you function.
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it overseas and not here in the u.s. general electric's american operations lost about $400 million. while its international businesses netted nearly $11 billion in profit. after deductions and adjustments, ge reported a negative 10.5% federal income tax rate and actually wound up with a tax benefit of almost $1 billion. when it comes to income tax payments on all those overseas profits? well, these are deferred indefinitely. not bad. make $11 billion, get a tax benefit of $1 billion more. the rest of us need our accountant. as for bank of america, after major losses in 2009, it is ended the tax year with a tax benefit of almost $2 billion. meanwhile, this country faces a staggering $12 trillion national debt. the deficit is going to top $12 trillion this month alone. we are going brumt.
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and washington refuses to do anything meaningful about it. but don't worry, the big corporations are doing just fine. see, they own the politicians and they own the government as evidenced by these kind of tax liabilities. here's the question -- is it right that companies, like general electric and bank of america, paid no federal income taxes last year? go to cnn.com/caffertyfile, post a comment on my blog. candy? you probably paid more taxes than general electric did. >> which is kind of amazing, because i didn't make that kind of money. i just want you to know right now. >> you didn't make $11 billion? >> not last year, the year before, but last year was a bad year. thanks, jack. latino members of congress are calling on arizona's governor to veto a state bill that will require police to question people about their immigration status. the measure passed yesterday by the state senate which would also require immigrants to carry their registration documents at all times. joining me now, cnn national security contributor, fran
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townsend. she obviously was with the bush administration. we appreciate, as always, your expertise. does it make us safer? you've looked at this bill. would it make america safer to have a bill like this? >> you know, it's interesting, candy, it's a very one-sided bill and that's why you see the controversy. there's nothing comprehensive about the approach of this bill. this is very heavily weighted to the law enforcement side. it requires officers, law enforcement officers, in arizona to question those that they have a reason -- the key language here is a reason to suspect they're in the country illegally. well, you tell me. how do you tell that by somebody walking down the street? and so the real concern here is that that provision will lead to racial profiling. >> well, it almost has to. i mean, you know, i guess i could be from canada and be an illegal immigrant, but they're not going to, you know, stop you or eye the streets. they're going to stop people who look latino, are they not? >> that's right. and so this is really -- how is this going to be implemented? is it going to result in racial
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profiling? is it written in a way that's overly broad? i don't want to get real legalistic here, but that's really the crux of the concern. and i suspect this legislation if it's signed into law will end up in court. there will be a great burden on law enforcement officers to be able to articulate the reasons that they've stopped an individual that go beyond race, because race alone is not a sufficient legal basis. you know, there are other very interesting provisions here, it requires people -- aliens to carry their identification cards. it makes illegal the fact of hiring day workers. it makes it illegal to transport them, because, of course, we hear about these stories along the border where you pick up day workers at a local street corner and hire them and then drop them back off. it makes all of that. so, it would also make the crime on the individuals who are supporting the sort of underground economy that supports illegal -- illegals who are in this country. you know, it's interesting, because secretary napolitano, who's now the secretary of homeland security, was the governor of arizona where this law is going to go before the
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now-republican governor who replaced her. she understands the immigration issue, but has put a different emphasis on work site enforcement, sort of interior enforcement in this country, that takes advantage of that underground economy. but she understands the border problem. and let's remember, last year in juarez, 2,600 people were murdered just on the other side of the el paso border, and so border communities have tremendous concern about their own safety. i think we're seeing this sort of legislation as a result of that concern. >> it will be interesting to watch. >> yes. >> fran townened is, thank you so much. a dozen junior high students get sick at school and have to be taken to the hospital, and now police say they know why. and white house chief of staff, rahm emanuel, opens up about the job he's eyeing. -time. time for new zyrtec® liquid gels. they work fast. so i can get relief from the pollen that used to make me sneeze, my eyes water. with new zyrtec® liquid gels, i get allergy relief at liquid speed. that's the fast, powerful relief of zyrtec®, now in a liquid gel. zyrtec® is the fastest 24-hour allergy medicine.
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lisa sylvester is monitoring some of the other top stories in "the situation room" right now. hey, lisa. >> hi there, candy. well, a group of retired military officers is sounding the alarm about what it calls a
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national security threat. school lunches. they say that 9 million young americans are too overweight to join the military, and the officers say fat is the number one reason recruits are rejected. the officers are calling for a nutrition bill that would make school lunches healthier. a dozen middle school students in hialeah, florida, were taken to the hospital after taking an over-the-counter cold medicine. the teens were trying to get high, but complained of dizziness and disorientation. they're all in stable condition. and the nfl is donated $1 million for the study of repetitive brain injuries. the money will help researchers at the boston university school of medicine look at the long-term effects of concussion common to football players and boxers and other athletes. it's believed that those injuries could lead to cognitive problems later in life, including dementia. and he's in the inner circle of national power, but white house chief of staff, rahm
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emanuel, wouldn't mind going local one day. he tells charlie rose of pbs that he'd someday like to run for mayor of his hometown of chicago. he goes on to say he hopes current mayor, richard daley, runs for re-election, adding that he'll help him if he does. could you satisfy rahm emanuel as a mayor, candy? i could. >> i think he could, which is the most important thing. i think is what's called planting your flag. >> yeah, i think so. it's at least getting the word out to folks, hey, i'm thinking about this. so we'll see. >> exactly. thanks, lisa. it was one of wall street's biggest names and drove others to bailout. jessica yellin is here to shed some light on wall street's shadow world of derivative trading. plus, are you taking in too much salt? why a prestigious advisory group said it's time for the government to set limits. i drove my first car from my parent's home
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in the north of england to my new job at the refinery in the south. i'll never forget. it used one tank of petrol and i had to refill it twice with oil. a new car today has 95% lower emissions than in 1970.
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exxonmobil is working to improve cars, liners of tires, plastics which are lighter and advanced hydrogen technologies that could increase fuel efficiency by up to 80%.
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on capitol hill today, a hearing into the largest corporate bankruptcy in u.s. histo history, the collapse of lehman brothers, which helped trigger the global financial crisis. among those testifying, treasury secretary, timothy geithner, who said lehman's collapse highlights the needs for reforms. >> imagine building a national highway system with two sets of drivers, the first group has to abide by the speed limit, where seat belts, buy cars with anti-lock brakes. the second group can drive as fast as they choose, with no safety features and without any
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fear of getting pulled over by the police. imagine both groups are driving on the same roads. that system would inevitably cause serious collisions and drivers following the rules of the game would inevitably get hit by drivers who weren't. a system like that makes no sense. we would never allow it on the roads, so why do we allow it in our economy? our financial system allowed risks to move towards areas where regulations were most lenient. and as you would expect, when there's a lot of money to be made by avoiding regulations, there's going to be a lot of activity and risk moving to where the constraints are weak. >> let's bring in cnn chief business correspondent, ali velshi, i mean, that's quite the metaphor. i'm not sure i know whether lehman is an example of someone we should have bailed out and that's the lesson or whether it's an example of why we should have reform. >> and there are two other tricky things there. one is tim geithner is not
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really given to those kind of metaphors, so he didn't deliver it with a lot of conviction, but he was in the room on september 14th, september 15th, 2008, when the decision was made to rescue lehman brothers. so, again, unclear as to what exactly that means we were supposed to do with lehman. here's what it does mean to our viewers, what it means is if that if the same situation were to present itself today, there are no regulatory changes in place that would prevent the situation that lehman brothers got itself into. now, keep in mind, we used to think, candy, that only crooks kept two sets of books. it turns out that lehman, evidence is showing, had two sets of books going. whether or not we had new rules in place, they may have been breaking the existing rules. the issue here, which is awhy president obama is pushing for reform, there is some feeling on washington that there are not enough cops around and there haven't been for a long time, so there was a spirit of being able to -- to ignore financial regulation.
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democrats and the administration want to change that right now, and it does seem like republicans are starting to move toward their efforts to do so, candy? >> ali, i did an interview with senator mark warner, virginia, who has been involved in trying to shape this financial reform bill. >> yep. >> i said, you know, we put up a big list of all the agencies already in existence that were supposed to be watching this stuff. >> yep. >> and now they're going to create -- have new rules and new agencies, and how confident are you that this is going to fix what was wrong? >> well, it's like alphabet soup. the financial regulatory system prior to this collapse was very much like the national security system before 9/11. lots of different agencies with lots of different disparate pieces of information that they couldn't bring together to see that there was an imminent collapse. i have spoken to a number of people very close to the legislation who say the design should be to bring the dozen or so agencies together and work in a fashion that we can see things. the other big thing about this legislation -- legislation, this
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reform that the president is proposing, is that it is going to just make the whole system a little more transparent. just the idea that everything has to be laid out, written, and understandable, may help us get toward a clearer system. it is a very opaque, hard-to-understand system right now of financial regulation, left only to the experts and unable to be regulated by mere mortals who don't even understand the language of this, candy. >> boy, that is -- that is for sure. thanks so much, our cnn chief business correspondent, ali velshi. thanks, ali. it helped sink lehman. it got goldman in hot water, and it drove aig to a government bailout. now, it's at the heart of the debate over wall street reform this week. it's called derivative trading. what does that mean? our cnn national political correspondent, jessica yellin, is here to explain. so, jessica, have at it. >> okay. breaking this down, candy, derivatives are basically like buying an insurance policy, and it all started with crops. for the sake of it, let's just say you grow green beans. you spent money planting and raising them. and you hope that they stay
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healthy and make you money. well, just in case there's a cold snap or a problem, you take out an insurance policy. if your green beans go bad, your insurance pays up and covers your crops. if the beans go to market, the bank pays you nothing. that insurance policy is a derivative. and it's a lot like a bet on your green beans. now, creative finance executives said, why stop at green beans? let's do the same thing for other products. oil, gold, even housing and mortgages, you can buy this insurance-type protection for just about any product. and here is what made them so popular. the finance guys looked at this and said, here's a big way to make more money. they decided, you don't have to own the green beans, the oil, the mortgages, or the gold to bet on them. so, candy, a gambler, or even i, could bet the bank that your crop price would go up. if it does, i make money. if it doesn't, i lose money. in a way, it's like gambling
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on other people's business, and that's what the derivatives market is. >> so, i think this may take far more explanation than we have time for. so, what's congress doing to try to change things? >> well, most of the deals are done privately. they call it in a shadow market, and in the u.s. it's usually done through one of the five big banks. the problem with keeping it private, a company like aig was taking bets on whether people would be able to pay their mortgages. when the housing crisis hit, it didn't have enough to cover its bets and, hello, government bailout. because it was private, nobody had any idea that aig was gambling so much. now congress wants most of the derivatives traded publicly in the sunlight like stocks and investors and everyone else can see how much each company is betting and then regulators can step in and order changes if a company's taking on too much risk. derivatives in a nutshell. >> thank you so much, our national political correspondent, jessica yellin, who knows a thing or two about
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derivatives. on capitol hill, one of those leading the charge against derivatives said a reform measure would shine the light of day on those shadowy financial markets. joining us right now, senator blanche lincoln, joining us. >> thank you. >> we want to talk about derivatives, because you have a bill on capitol hill that you think will go a long way towards stopping this sort of thing that caused the economic meltdown. it puts what is it $6 trillion -- >> yeah. >> -- worth of derivatives market. is it really possible to control that kind of cash that flows that quickly? >> well, i think it's real important for people to know that with the $600 trillion marketplace, where these derivatives have been, these over-the-counter market products, that we don't know about them except the fact that we looked behind it. and so the whole objective here is to create transmarnssy. our bill does that. and i think it's probably, i believe it is, the strongest in
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terms of reform of anything that anybody has produced. and what we do is require 100% transparency, real-time reporting to both regulators and to the public. we also mandate that there is an exchange trade -- they have to be exchange traded as well as they have to be cleared. and looking at all of these things, if banks want to be banks, they can be banks, but if they are going to deal in swaps, then they've got to move the swaps off of the banks. >> one of the reasons that wall street is not crazy about this idea is because they have sort of operated largely in the dark on these. they've been private deals. is that when people bought them, they really didn't know what their markets were -- was, so banks could charge a lot, because the buyers had nothing really to compare it to. how certain are you that you're going to be able to get enough votes for this? because it's a pretty powerful lobby. >> well, it is a pretty powerful lobby. but i think most members understand, like i do, that we need to answer to the people at home, and the fact is that you're exactly right.
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this information was privy only to the -- the folks on wall street. there's no doubt that business and industries need to be able to mitigate their risk. they need to park their risk in places. but we are able to still do that under our bill for commercial users. but these people that have been doing it speculatively, those that have been at the mercy of the wall street folks who have all that information, you know, we will be able to shine the light of day on what they're doing with that transparency, with that real-time reporting, and therefore, i think, other people will be able to participate in that marketplace, but, more importantly, people will know what's happening. they will know what we are dealing with in terms of this market. >> let me turn you to politics, because you are in a very rough race back home. a re-election race for you. one of the most in-danger democrats, i think, one of the titles they give you when we read about your race. what is it that you think that has made you a target from the
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left of your party, the more liberal democrat running against you in the primary? what have you done wrong as far as democratic orthodoxy is concerned? >> well, i look for results. you know, i don't look at the politics of things. i don't look at the left or the right. and this bill is a good example. what i look at is getting results for our kansans. getting results for the people of america. and i look for common ground to solve that problem, because i do think common ground is the place to be. it's where you find -- >> it might cost you election, might it not? it does seem like this is a pretty rough one for you, so being in the middle has proved not to be a very safe place for a politician. >> no, i have to say, i've always had tough races, that's just by the nature, they've always been tough elections, but i think by in large, the kansans see through that, but they can also see we're trying to get results and looking for common ground and trying to solve the
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problem. that's exactly what they want. people want to see, nowadays, i think, government moving forward, sometimes one step at a time, but, more importantly, solving the problems. >> last question here, by our count, you've got about $4,500 in campaign contributions from goldman sachs which has now been charged -- it's been found guilty of nothing, but it's been charged of not really telling investors everything those investors should have been told. you have gotten $4,500 from goldman sachs p.a.c. and goldman sachs employees. have you thought about giving that back? >> no. i think the larger point here is that whatever that contribution was -- and i have had multiple contributions from lots of different places, from agricultural entities, other business entities, $4 million from our kansans, the point here is, is that the contribution doesn't make any difference, because i've still presented one of the toughest reform bills that has been presented. the idea here is, certainly you listen to everyone, and that's exactly what i did in ut.
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ing this bill together. but, more importantly, that you're working hard to get something done for the american people, and in my case, the people of arkansas. people want transmarnssy and accountability in their government and in their financial system and that's what we do in this bill. >> senator blanche lincoln of arkansas, thank you for being with us. >> thank you, candy. next, calls for a crackdown on salt. we'll tell you who wants to have limits on the amount of salt we neat. it doesn't cover everything.
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and what it doesn't cover can cost you some money.
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government regulators say they'll start looking in to limiting the amount of salt you consume. americans take in more than twice the sodium they need, and that can boost your risk of serious ailments. most of the sodium in your diet doesn't come from your salt shaker. it's in processed foods and restaurant meals. today a prestigious group chartered by congress called on the government to do something about it. we brought in our mary snow to look into that. mary, what's the story here? >> well, candy, if you can see this, this is what a teaspoon and a half of salt looks like. in a very sophisticated lab here. but this is the average amount of salts that americans consume every day according to the institute of medicine it wants to regulate the amount of salt that food manufacturers and restaurants can add to meals. sodium's been linked to a higher risk of hypertension, heart disease and stroke, and this panel now wants the government to set mandatory limits, and
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they would be the first of their kind. the food and drug administration said it hasn't made any decisions, however, it is opening a door. it is issued a statement today saying over the coming weeks the fda will more thoroughly review the recommendations of the iom report and build plans for how the fda can continue to work with other federal agencies, public health and consumer groups and the food industry to support the reduction of sodium levels in the food supply. however, one group that is not swayed is the salt institute. it represents salt producers. it does not back any of these calls for regulations, and it says a one-size-fits-all prescription for the federal government is reckless and may have serious, unintended consequences. basically a spokesperson for the group said should the government regulate the consumption of what it says are low levels of salt, it would effectively compel the entire population to take part in the largest clinical trial ever carried out without knowledge or consent. >> it's probably not that all
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surprising that salt institute would be against this. but -- >> right. >> -- haven't companies already been cutting back on their salt? >> you know, they have. and it's been a number of things. you've seen it in soup, some chips. but groups like the center for science and the public interest say these have been steps in the right direction. bottom line, they say it hasn't worked. this is the same group that found that some meals at popular restaurants contain several days' worth of salt in a single dish. but one of the biggest hurdles, of course, is taste. and there's no substitute for salt. food makers have been struggling with that in order to have products that have reduced sodium that can sell. and because of that, you know, a lot of food experts say it's not expected that any limits will take place right away. >> cumin, that's all i have to say to you. thanks so much, mary snow, i appreciate it. >> sure. a small part in a big film. it led to more than six decades of work for one of the "wizard of's on" munn chins. today a sad end.
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today, a white house aide is mugged at gunpoint on a washington street. we've got the details. [ sneezing ] ♪ ♪ [ male announcer ] what are you gonna miss when youave an allergy attack? benadryl® is more effective than claritin® at relieving your worst symptoms -- runny nose, sneezing, and watery eyes -- and works when you need it most. benadryl®. you can't pause life. key lime pie, pineapple upside down cake, raspberry cheesecake... ...yeah, every night it's something different. oh yeah yeah...she always keeps them in the house. no no no, i've actually lost weight... i just have a high metabolism or something... ...lucky. [ wife ] babe... ♪ umm, i gotta go. [ female announcer ] 28 delicious flavors at around 100 calories each. yoplait, it is so good. indulge in new blueberry pie and new red velvet cake. yoplait light. it is so good.
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indulge in new blueberry pie and new red velvet cake. a guy nafor 65 dollars.ce, wants a room tonight we don't go lower than $130. big deal, persuade him. okay. $65 for tonight. you can't argue with a big deal. and you can get a big deal on last-minute flights, too. while everyone else's prices are on the rise,
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priceline finds the empty seats to save you up to 50% off published fares when you name your own price. big last-minute savings from the home of the big deal. lisa sylvester is monitoring some of the other top stories in "the situation room" right now. lisa?
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>> hi there, candy. there's controversy over the deaths of four unarmed afghans shot and killed in their car by nato forces. nato said two of the victims were known insurgents and that their car was approaching it a nato convoy despite warnings to stop. afghan president hamid karzai said all four victims were civilians, one a 12-year-old boy. the crew of the shuttle "discovery" is home after 15 days and 6 million miles in space. the seven astronauts were due back yesterday, but weather postponed their return. "discovery" is nearing the end of its service. it has only one mission left. and there are only three total missions remaining before the entire shuttle program is retired. and in wisconsin, a funeral was held today for the actor who played the munchkin corner in "wizard of oz"," meinhard raabe parlayed it in into a lifetime career, appearing at "oz" festivals for decades. he also worked as a spokesman
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for oscar mayer. he died at the age of 94. and kal penn was robbed at gunpoint early this morning in downtown washington. two officials familiar with the incident say his wallet and cell phone were stolen, but he was not seriously hurt. penn starred in the film "harold and kumar go to white castle." he's said to be eager to return to acting. you know, he's also, candy, has been in a number of tv roles, "house" and "24" but pretty bizarre story, and he is planning on returning to acting. he did mention that. it was announced, i think, earlier this month, candy. >> going back to his day job. thanks so much. >> yeah, going back to his day job. i think it pays a little bit more. >> i'll bet. i'll bet. jack cafferty is next with your e-mail. then a most unusual ailment for an accent syndrome. cnn's jeanne moos has the prognosis.
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time now to check back with jack cafferty. >> is it right that companies like general electric and bank of america paid no federal income taxes last year, nari a farthering? ann writes, kind of makes the whining about corporate tax rates nonsensical, doesn't it? they aren't the only corporations that pay little to nothing in taxes. fair? no. shouldn't be legal either. now they can spend all that unpaid tax money to buy more politicians to shape the laws to suit them. why does any american with a brain support them? randy in minnesota. and you wonder why we're in
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trouble with no money to pay the bills around here. no tax money coming in, there's no money to pay out. if we're smart we can put the republicans back in charge in november and then go through this again. it's time for the big companies to pay up and close the loopholes republicans have given them the last several years. let's start paying down the deficit. clifford in new york writes, if ge is playing by the irs tax rules and abiding by our ridiculous tax code then they're entitled to whatever they can get. this really points out how ridiculous the tax situation is. corporations that make billions of dollars should be paying taxes to help support the country they are doing business in. small wonder the taxpayers in america are so angry. the list of injustices seems to go on and on. lorraine in maryland writes, what a surprise. we're always being told by the republicans that we need to end the corporate income tax. looks to me like it's already ended. so they earned their income overseas. does that mean that american soldiers don't have to defend them? it would be nice to see a little
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patriotism from these jokers but don't hold your breath. peg in new york writes, who exactly allows this to be okay? sounds like what's good for big business is not good for the tax-paying masses. this is just plain wrong in so many ways and on so many levels. i need new appliances. ge is off my list. and andrew writes, jack, how dare you suggest that corporations pay income tax? it's the responsibility of the citizens to pay the taxes so that the government can then give the bailouts, the tax exemptions, the tax credits and the subsidies to the kofrpti corporations. if you want to read more it will ruin your appetite for dinner but we got pretty good e-mail. cnn.com/cafferty file. allow me to compliment you on a magnificent job. i think this is the first time you ever anchored this telethon. >> it is with you for sure. thank you. it's been fun. as long as i have you here, i'm great. >> i'm here for you. >> thanks, jack.
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migraines, headaches and chinese accents. in one case, there is a connection. cnn's jeanne moos takes a most unusual look. until the job get, the last thing you need is a truck that doesn't have the stones to bring home the benjamins. no problem. introducing the all new 2011 super duty. thanks to its all-new ford-built power stroke diesel, you get it all. the most horsepower. the most torque. the most payload. the most towing. and the best fuel economy. it's payday. the all-new super duty. soak our yards in color. get our hands a little busier. our dollars a little stronger. and our thinking a little greener. let's grab all the bags and all the plants and all the latest tools out there. so we can turn all these savings into more colorful shades of doing. more saving. more doing. that's the power of the home depot.
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right now at the home depot, buy one packet seeds get one free. i have asthma. and that's what it sounded like when my symptoms came back. i'd get this tightness in my chest. like i was breathing through a straw. so i went back to my doctor again. we talked about choices in controller medicines. we chose symbicort to help control my asthma. [ man ] while it's not a rescue inhaler, symbicort improves my lung function, starting within 15 minutes. it helps give me the control to... [ inhales, exhales ] symbicort is a combination of two medicines. it will not replace a rescue inhaler for sudden symptoms and should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol may increase the chance of asthma-related death, so it is not for people whose asthma is well controlled on other asthma medicines. see your doctor if your asthma does not improve or gets worse. with symbicort, my lung function starts to improve within 15 minutes, helping me... all day. symbicort is a good choice to help control my asthma. [ inhales ] [ exhales ] ask your doctor if it's a good choice for you.
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here's a look at today's hot shots. in lo liva people waved colorful flags while attending a conference on climate change. in nepal christians pray for peace and religious freedom. in indian leaping through a burning ring of flames during a drill at the commonwealth games. hot shots, pictures worth a thousand words. a most unusual ailment leaves its victim sounding like they never did before. cnn's jeanne moos looks at foreign accent syndrome. >> reporter: politicians do it. >> there's nothing we can't do. >> reporter: adopt an accent. >> we got too many daddies -- >> reporter: actors do it. >> this is not a fake accent. i'm not scotland. >> reporter: adopt an accent. >> you start talking like that and then you talk like that all the time. >> reporter: but this british
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woman used to talk all the time with an english accent until out of the blue her accent changed to chinese. >> when i did speak, it sound chinese. >> reporter: it happened after a migraine so severe her husband called an ambulance. a week later sara caldwell's new chinese accent changed again. >> sounded more eastern europa and it have been like that ever since. >> reporter: doctors diagnose it as fas and the "f" does not stand for fake. >> it's foreign accent syndrome. >> reporter: it's caused by a stroke or a brain injury that affects -- >> the speech area itself where you are actually forming words with your mouth. >> reporter: imagine the only voice you've ever known goes from this -- >> we've got fabulous things. >> reporter: to this. >> i felt like i was going bloody crazy. >> reporter: florida resident judy roberts was indiana born and bred. she had never even been to england.
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but a stroke left her with an english accent. >> and if you ran into anybody i used to know, they would look at you like you had flipped your wig. >> reporter: in a piece on foreign accent syndrome, abc interviewed an american woman who not only got a new accent -- >> the accent would be very russian. >> reporter: cindy lou romberg sometimes speaks in sounds that linguists say don't re-simable any known language. [ speaking foreign language ] >> reporter: from griberrish to chinese, english woman gets chinese accent. sounds like a joke. but the people it happens to aren't laughing. >> strangers who meet me think i'm foreign. also, some people speak to me as if i am a bit silly or a bit stupid. >> reporter: sometimes you get mocked for acquiring an accent. >> i hadn't quite adjusted to the tabloids. >> reporter: and sometimes an accent acquires you. >> thank god i've got a

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