Return to Transcripts main page

American Morning

Jackson Indicted in Child Molestation Case; Pentagon May Run Out of Funding for Iraq War by End of Summer

Aired April 22, 2004 - 07:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: Good morning. A grand jury working in secrecy makes a decision. Michael Jackson is indicted, but many questions still unanswered today.
The price tag for Iraq.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Additional time in Iraq is going to cost us more money.

(END VIDEO CLIP)

HEMMER: Members of Congress demanding to know how many more billions are needed. In some cases, the answers are hard to get.

And the tavern in Utica, Illinois where so many died yesterday -- meet the man who escaped on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

Other stories that we are following this morning -- in addition to Michael Jackson, there is a big development in the Kobe Bryant case as well.

Bryant's lawyers have to go with Plan B after the judge issues a key ruling against them. Jeff Toobin is going to join us to explain what happened in that case, and also what is happening in the Jackson case, as well.

HEMMER: Also, about this time yesterday, talking about Saudi Arabia. We'll talk to Robert Jordan, a former U.S. ambassador there in the kingdom about the bombing yesterday. What was the message sent? Who was the messenger? All critical questions now 24 hours later there.

O'BRIEN: Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: How you doing? How much do we really need to know about the candidates of the nation's highest office?

You've got your medical records; you've got your military records; you've got your tax records; you've got lobbyists records. How much is too much? We'll take a look at that concept a bit later.

HEMMER: Very topical, too. Thanks Jack.

Top stories now. Starting today, the largest Army post in the U.S. now getting ready for its greatest party ever. That's how they describe it.

About 275 soldiers in Fort Hood, Texas return from a yearlong mission in Iraq yesterday. More troops come home today.

They're being greeted by a star-studded list that includes Jessica Simpson, the New England Patriot cheerleaders, and about 30,000 donated barbecue sandwiches. We will be there live in about 14 minutes here on AMERICAN MORNING.

Meanwhile, back in Iraq, families in Basra mourning the victims of suicide car bombings. At least 68 people, including almost 20 school children killed in attacks yesterday.

Three Iraqi police stations at a police-training center also targeted. Some officials in Iraq blaming al Qaeda for those bombings. About 100 others wounded in those same attacks.

In this country now Illinois Governor Rod Blagojevich has declared parts of his state a disaster area. The death toll now at eight after a series of tornadoes on Tuesday night. In Utica, 90 miles southwest of Chicago, crews recovered more bodies yesterday.

We will hear from a survivor in our next half hour this morning.

A big loss they say for Kobe Bryant's defense team. The judge in Bryant's sexual assault case says the medical and psychological records of his accuser cannot be used in court.

No trail date yet set for the Lakers star, but closed-door hearings begin Monday to determine whether or not the 19-year-old woman's sexual history is admissible. Jeff Toobin is on this in a few moments here today.

Democrats complaining that a bill to give financial aid to troops falls short. The Republican bill allows financially strapped National Guard troops and reservists serving in Iraq and Afghanistan to make penalty free early withdrawals from their IRAs and their 401(k)s. It was passed unanimously by the House yesterday. One Democrat calling that measure, quote, the tiniest of tiny benefits.

7:03 now in New York, we're off and running here.

(WEATHER REPORT)

O'BRIEN: We begin this morning with the decision by a California grand jury to indict Michael Jackson in the child molestation case against him.

CNN's Miguel Marquez is live in Santa Barbara for us this morning with the very latest. Miguel, good morning. MIGUEL MARQUEZ, CNN: Good morning to you, Soledad. For 13 days that grand jury heard and considered testimony against Michael Jackson, and they did return an indictment. All of this related to molestation allegations from February of 2003.

Now the new charges -- we don't know exactly what they are -- but if they move ahead in the criminal process, they will supersede the criminal complaint that was filed against Mr. Jackson on January 7. Then he was charged with seven counts of lewd and lascivious conduct against a child under 14 and two counts of administering an intoxicating agent to a child.

Now, if the Santa Barbara district attorney Thompson continues with those charges, and files them, then Mr. Jackson would probably be back in court on April 30. Mr. Jackson's lawyers prepared a statement that was OK'd by the court ahead of time for release, and they say that Mr. Jackson will be fully exonerated, and the allegations contained in the indictment will be shown to be patently false.

His lawyers also remind everybody that these are, in fact, allegations and that Mr. Jackson if he must appear in court on the 30 and it appears that he will have to appear in court on the 30 that he will plead not guilty -- Soledad.

O'BRIEN: Miguel Marquez for us this morning out in California. Thanks, Miguel, appreciate it.

Turn now to our senior legal analyst Jeff Toobin to talk a little bit more about the Michael Jackson indictment. Also, of course, the news about the Kobe Bryant case, as well, but let's start with Michael Jackson. Surprise or not?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Not really. The prosecutor said he was going to the grand jury; grand jurors almost always do what prosecutors want.

There has been an indictment. We don't know precisely what the charges are -- that under California law, indictments are not made public until the arraignment which will be next Friday but it looks like it very much tracks the complaint that Michael Jackson was arrested on last December.

O'BRIEN: Because the complaint originally had seven charges in it.

TOOBIN: Seven child molestation charges, I believe. Two charges of giving an intoxicating agent to a minor. Based on the witnesses who we know appeared before the grand jury it appears that those are very much the same charges if not exactly the same thing.

O'BRIEN: Can a grand jury come up with other charges so it could be -- really -- could be anything.

TOOBIN: Absolutely, and one of the big mysteries about the case was would more victims come forward, would there be charges relating to other children. It appears that's not the case and that makes the prosecutions case a good deal harder.

O'BRIEN: Well, the defense has said that Michael Jackson will be fully exonerated, that's a quote. What exactly does an indictment mean? It certainly does not mean that there is -- that he's guilty. It just means enough evidence to go to trial?

TOOBIN: It means a majority of the grand jurors found probable cause that Michael Jackson committed these crimes.

O'BRIEN: Doesn't mean overwhelming evidence?

TOOBIN: It doesn't mean that a -- as in a trial jury where unanimous jury has to find proof beyond a reasonable doubt so it's a much lower threshold. California the -- you can proceed from an arrest to trial either in a preliminary hearing or in grand jury the prosecutor here Mr. Sneddon decided to do a grand jury proceeding, both of which are mostly formalities. It really is -- prosecutors almost never lose at this stage. The real test in this case is ahead and part of part of it the trial jury.

O'BRIEN: The bar is lowered is what you're saying.

TOOBIN: The bar is lowered.

O'BRIEN: When you look at the list of the folks who testified before the grand jury, it seems pretty clear to me at least, not a lawyer, that the '93 case is going to play a pretty big role in the current case.

TOOBIN: Absolutely. The '93 case will be used not as separate charges, there can't be charges based on the '93 case but the prosecutors will be able to argue, look, this is a pattern of behavior. He did it before in '93, he did it in 2003.

Obviously, the defense is going to claim that both accusers, the '93 young man who got millions of dollars and this one, this current accuser, the former cancer patient, are both ultimately out for money. That's going to be a big theme with the defense here, you can be sure.

O'BRIEN: How does somebody who is as famous as Michael Jackson -- I think it's fair to say is arguably the most famous person maybe in the world -- how does he get a fair trial and how does he get a fair trial in Santa Barbara, which certainly just looking at it racially does not reflect, you know, a jury of his peers, necessarily.

TOOBIN: You are not entitled to a jury of your peers in the sense of people who are just like you, whether racially, in terms of fame, he is not -- this is the county where he lives, and what's peculiar about this case is I don't think the publicity is so much concentrated in Santa Barbara as opposed to spread out all over California.

So I don't know if a change of venue will do him any much good. I think there's going to be a tremendous amount of voir dire, which is examination of potential jurors -- examining their attitudes, seeing if they're unbiased, but it's going to be a real challenge to get an unbiased jury on this case. I don't think it's going to be easy.

O'BRIEN: Quick question about Kobe Bryant -- how big of a set back is this -- the judge now ruling that this information, medical history -- is not going to be allowed to be used by the defense. Big deal or not big deal?

TOOBIN: It's definitely a set back. It is not a huge set back. There are a lot of other issues that the judge still has to deal with, most importantly the judge is going to still have to address the issue of the accusers sexual behavior in the period around the time of the alleged assault by Kobe Bryant and this ruling today has nothing to do with that...

O'BRIEN: That's next week.

TOOBIN: That's when she's -- the judge is going to start hearing evidence on that but -- but this hearing relates only to the medical records of her psychiatric treatment earlier in 2003.

O'BRIEN: Which means they can't talk about it, or they just don't have access to the records?

TOOBIN: They don't have access to the records. When she takes the stand, almost certain that they will be allowed to ask about these medical -- these mental health incidents that took place earlier in the year but they won't have the documents to cross examine her with.

O'BRIEN: Interesting developments in both of these cases.

TOOBIN: Lots more to talk about.

O'BRIEN: Jeff Toobin, as always, thanks -- Bill.

HEMMER: Soledad, at 10 past the hour.

The Pentagon may run out of money for the war in Iraq by the end of this summer. Two senators now saying that election year politics might be keeping the Bush administration from asking for more money before November.

The senators, Joe Biden, a Democrat and Chuck Hagel, a Republican seem to disagree with the White House on $50 billion that may be needed in the next fiscal year. The chairman of the joint chiefs says the military is spending close to $5 billion a month and that it will cost $700 million just to pay for the troops whose tour in Iraq was recently extended by three months.

(BEGIN VIDEO CLIP)

GEN. RICHARD MYERS, CHAIRMAN, JOIN CHIEFS OF STAFF: The increased operations tempo, keeping what's going to turn out to be a force of around 20,000, which includes the First Armored Division and that's the bulk of it.

Additional time in Iraq is going to cost us more money. We estimate right now we are working those estimates right now, let me just say that. And we've got to take a look and see if we have the wherewithal inside the DOD budget.

(END VIDEO CLIP)

HEMMER: That was from yesterday. This morning Barbara Starr is at the Pentagon; we'll get to her a bit later in our program today.

Also, an independent panel looking into allegations of corruption in the Iraqi oil for food program. U.N. Secretary General Kofi Annan endorsing an independent probe yesterday.

That is set up to investigate whether or not top U.N. officials allegedly took bribes and kickbacks. Former Fed Reserve Chairman Paul Volker is the chairman of that.

U.S. lawmakers claim that billions of dollars of oil revenue flow to Saddam Hussein's regime illegally. They're also looking at the possibility that maybe this money went to Moscow, perhaps to Paris and maybe even here to some people living in the U.S.

Christopher Shays is heading up a House Committee in D.C. We'll talk to him next hour on that.

O'BRIEN: And still to come this morning, there is a big celebration for troops who are returning to Fort Hood from Iraq but their happiness could be short lived. We'll explain.

HEMMER: Also we'll talk live to the man who escaped a deadly tornado by mere seconds. He says it was a sixth sense. To Illinois in a moment on that story.

O'BRIEN: And Donald Trump about to get some competition. How many billionaires can be on TV at the same time? That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Ah, there she is. This morning the Queen Mary II made her way past Lady Liberty and into New York Harbor.

The luxury liner made up some lost time that was lost overnight after some bad weather. Its arrival in the Big Apple on schedule after its maiden westbound transatlantic voyage.

Some 2,600 passengers were on board, along with over 1,000 crewmembers. The Queen Mary II cost $1 billion to build. It's the world's largest cruise ship.

Here's a list of what's on -- what you get there. What you get for your money. Cayman ranch (ph) massage on the Queen Mary II. First planetarium on the Queen Mary II. Largest ballroom at sea, the largest library at sea, the largest wine collection at sea; and also children's facilities and British nannies to take care of them.

HEMMER: Ah, perfect for your family.

O'BRIEN: Quite lovely, actually. I would leave my children home if I were going to spend all that money on the Queen Mary II.

HEMMER: A modern day Titanic, huh?

O'BRIEN: Pretty neat, though, to see it pull in, huh?

HEMMER: Maiden voyage here in New York City now. That's one homecoming.

Here's another to talk about. The Army's fourth ID getting a big time welcome home there in Fort Hood Texas.

A star-studded celebration, literally, for that group that captured Saddam Hussein. The Fourth ID and other returning units spent almost a year on the front lines in Iraq.

Major General Ray Odierno, commander of the Fourth ID with us now back here on AMERICAN MORNING to talk about today's events and the mixed emotions surrounding it.

Welcome back to AMERICAN MORNING and good morning to you.

Want to get to the event today in Fort Hood but first the initial reaction you have knowing that the Pentagon is drawing up plans to possibly send either fresh troops this summer or even more troops in the 137,000 there currently.

Some are suggesting your unit would be prime picking to send back to Iraq. Your reaction to that, General?

MAJ. GEN. RAY ODIERNO, COMMANDER 4TH INFANTRY DIV.: Well, of course, my comment is we will do whatever it takes to win this war and we're going to do whatever our country needs us to do and so as decisions are made we'll be ready and that's we're now getting back and the first thing we'll do is get our soldiers and equipment ready to re-deploy anywhere in the world that we're needed.

That's our job, that's what the American people pay us to do, and we're proud to do that and so we'll continue to be prepared to do that when called upon.

HEMMER: Also in the topic of coalitions, Spain's decision, the Dominican Republics decision, Honduras, how will that impact military strategy in Iraq today with that ongoing war?

ODIERNO: Well, I think we'll just continue on with our current strategy. Of course we want to build a coalition and I think the coalition will continue to grow as we move forward and its important that we have a lot of different coalition partners and I think we're working that and that will occur, but in terms of our strategy we'll not change it at all.

HEMMER: What can you say about morale between the 4th ID. By my count, General, 79 lives lost in Iraq. With the 4th Infantry Division.

ODIERNO: Well first we'll never forget those who gave up their lives. That they gave the ultimate sacrifice, their families we'll always be indebted to their families and what they did. But the morale is very good.

They understood why they were there; they understood the mission that they were there to accomplish. They realize they made some great accomplishments while they were over there.

Morale is high; they're great to be back home. But a minute doesn't go by that we don't about our other comrades that are still over there in harms way.

HEMMER: Let's talk about today. Some say it's going to rival Woodstock. Is that more than PR? What's going to happen?

ODIERNO: Well, I'm not sure it's going to be -- as big as Woodstock but I mean it's going to be a great celebration and it shows the American -- shows how supportive the American people are of our soldiers and that's very important to me and to all of us leaders here in the Army that we know that our soldiers are appreciated by the American public and its being shown today and we're going to have tens and twenties of stars here today to celebrate our homecoming as we officially uncase our colors to celebrate our welcome home.

HEMMER: Well one more thought here. Drew Carey, Jessica Simpson, Ludicrous, Lynyrd Skynyrd, cheerleaders from the Dallas Cowboys, cheerleaders from the New England Patriots -- you mentioned in your previous answer why morale was so high. Explain to us why that has maintained that level.

ODIERNO: I think -- again -- they understood what they did. They understood that they took down part of the insurgency. They understood the progress that has been made in most of Iraq and they really feel good about that and they feel really good about the reception they've gotten from the American people and the support that everyone throughout the entire country has shown to our soldiers.

HEMMER: Thank you, sir. Ray Odierno, Major General, Fort Hood, Texas -- enjoy today and well deserved.

ODIERNO: Thank you very much. Thank you.

O'BRIEN: Still to come this morning pop star Michael Jackson indicted by a grand jury -- we've got the latest details in his child molestation case straight ahead.

Plus will a former high-flying Enron executive wind up in court sooner than he expected? That story is ahead as AMERICAN MORNING continues, stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Alan Greenspan says interest rates have to go up some time. Andy Serwer "Minding Your Business." Good morning to you.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you. The Fed Chairman basically holding up a sign, Soledad. Very clear saying interest rates must rise at some point. Not quite the same reaction on Wall Street yesterday.

Response a little bit more muted. I think the big fireworks were on Tuesday. You can see here stocks up across the board, this after the plunge on Tuesday.

What that means is interest rates on CDs, interest rates on your savings accounts will be going up. That's the good news but of course you'll be paying more on credit cards, mortgages and car loans.

Not saying when rates are going up, of course. Not holding his hand, showing his hand, but preparing folks, preparing people on Wall Street, preparing businesses, preparing the rest of us. What happened in 1994, Soledad, rates went up, "Wall Street Journal" has a story on that -- caused a lot of problems, Orange County in California went in the deep soup you may remember.

The Mexican economy as well and Kidder Peabody here on Wall Street got in a lot of trouble. So, this is an inflection point as the economists say, a turn in the economy and the Fed Chairman wants to be very clear that we're seeing it coming.

O'BRIEN: So the stock news, about a Taser -- I got to tell you -- high five to you -- you were so right.

SERWER: Well, you know, I wish I was right like that all the time. Taser makes stun guns and boy investors getting zapped in this one.

This thing gone through the roof, gone from one dollar to $118 early in the week. It's now at $84. That's a pretty sharp drop. A lot of these little defense stocks like Mace, a couple of others, have really been flying around a lot -- it kind of reminds me of back in the 1990s with the Glow.com and Amazon going through the roof. Lot of speculation out there in the markets as well.

O'BRIEN: And then we have a story about Jeff Skilling who we had a story about -- what -- a week or so ago?

SERWER: Yes, when he was out in Manhattan partying and boy that was an ugly night for him and now -- and his wife too. Federal prosecutors now possibly want to restrict the terms of his bail saying the incident in Manhattan the other night showed that he is violating the terms of that and the police reports say that he stole a license plate from a car out in front of a bar, lifted a woman's blouse looking for an FBI wire -- this is in the report -- and it really is kind of sad -- I was talking to people close to the investigation and who have no love for him, but saying it's just really kind of pathetic.

O'BRIEN: Well they want to curtail his drinking.

SERWER: They may do that; it's unclear from the documents filed.

O'BRIEN: Well I wonder if they can legally do that or if that's just a...

SERWER: Well, they may -- you know they may want to try to keep him under wraps a little bit more.

O'BRIEN: We'll see. All right Andy thank you very much, appreciate it.

CAFFERTY: They may want to chain him in front of the building down there and feed him three times a day until the trial starts.

O'BRIEN: Then there's that option.

SERWER: Judge Jack. Tough love from Judge Jack.

O'BRIEN: Or we could not go that far.

But thank you for your input.

CAFFERTY: Just a thought. "Question of the Day" has to do with all of the information we're getting about these guys who want to be president.

John Kerry releasing information about 200 lobbyists that he's met with since 1989. This according to "The Washington Post." But we still don't know who attended those energy policy meetings in the Bush White House back a year or two ago.

Kerry began posting his military records on his Web site this week -- he promises more medical information will be forthcoming soon. Also the senator's campaign says he's rethinking his decision to keep his wife's tax records secret. He's married to the heiress of the Heinz fortune, who is in charge of that billion-dollar foundation.

President Bush's records -- whoops -- have also been a hot topic of late, especially his military service in the National Guard. Only a few reporters have had access to his medical history and the tax time the president and his wife only made parts of their personal financial information available, making him the first president since Jimmy Carter not to give full disclosure.

So the question is this -- and it's a long way to get to but we hope it will be worth it --

HEMMER: So do we.

O'BRIEN: Oh, there was a question in there?

CAFFERTY: It even occurred to me --- I was like, God, doesn't he ever shut up? Here be the question: How much do we need to know about the presidential candidates? Please keep your answers shorter than this introduction was, though.

HEMMER: That is preferred.

CAFFERTY: Because it's wearing even me out.

O'BRIEN: That sounds like a 9/11 Commission -- a long question then keep your answer short because we're out of time.

CAFFERTY: Yes, because it's all about me.

SERWER: Just a statement really, right?

HEMMER: Thanks Judge Jack.

CAFFERTY: You're welcome. Any time.

O'BRIEN: Still to come this morning he's a record producer, a clothing designer, a marathoner. Well now P. Diddy heads to the Great White Way. That and a billionaire battle and the weekends top movies for our "90-Second Pop" in a moment.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired April 22, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning. A grand jury working in secrecy makes a decision. Michael Jackson is indicted, but many questions still unanswered today.
The price tag for Iraq.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Additional time in Iraq is going to cost us more money.

(END VIDEO CLIP)

HEMMER: Members of Congress demanding to know how many more billions are needed. In some cases, the answers are hard to get.

And the tavern in Utica, Illinois where so many died yesterday -- meet the man who escaped on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, welcome everybody.

Other stories that we are following this morning -- in addition to Michael Jackson, there is a big development in the Kobe Bryant case as well.

Bryant's lawyers have to go with Plan B after the judge issues a key ruling against them. Jeff Toobin is going to join us to explain what happened in that case, and also what is happening in the Jackson case, as well.

HEMMER: Also, about this time yesterday, talking about Saudi Arabia. We'll talk to Robert Jordan, a former U.S. ambassador there in the kingdom about the bombing yesterday. What was the message sent? Who was the messenger? All critical questions now 24 hours later there.

O'BRIEN: Jack Cafferty, good morning.

JACK CAFFERTY, CNN ANCHOR: How you doing? How much do we really need to know about the candidates of the nation's highest office?

You've got your medical records; you've got your military records; you've got your tax records; you've got lobbyists records. How much is too much? We'll take a look at that concept a bit later.

HEMMER: Very topical, too. Thanks Jack.

Top stories now. Starting today, the largest Army post in the U.S. now getting ready for its greatest party ever. That's how they describe it.

About 275 soldiers in Fort Hood, Texas return from a yearlong mission in Iraq yesterday. More troops come home today.

They're being greeted by a star-studded list that includes Jessica Simpson, the New England Patriot cheerleaders, and about 30,000 donated barbecue sandwiches. We will be there live in about 14 minutes here on AMERICAN MORNING.

Meanwhile, back in Iraq, families in Basra mourning the victims of suicide car bombings. At least 68 people, including almost 20 school children killed in attacks yesterday.

Three Iraqi police stations at a police-training center also targeted. Some officials in Iraq blaming al Qaeda for those bombings. About 100 others wounded in those same attacks.

In this country now Illinois Governor Rod Blagojevich has declared parts of his state a disaster area. The death toll now at eight after a series of tornadoes on Tuesday night. In Utica, 90 miles southwest of Chicago, crews recovered more bodies yesterday.

We will hear from a survivor in our next half hour this morning.

A big loss they say for Kobe Bryant's defense team. The judge in Bryant's sexual assault case says the medical and psychological records of his accuser cannot be used in court.

No trail date yet set for the Lakers star, but closed-door hearings begin Monday to determine whether or not the 19-year-old woman's sexual history is admissible. Jeff Toobin is on this in a few moments here today.

Democrats complaining that a bill to give financial aid to troops falls short. The Republican bill allows financially strapped National Guard troops and reservists serving in Iraq and Afghanistan to make penalty free early withdrawals from their IRAs and their 401(k)s. It was passed unanimously by the House yesterday. One Democrat calling that measure, quote, the tiniest of tiny benefits.

7:03 now in New York, we're off and running here.

(WEATHER REPORT)

O'BRIEN: We begin this morning with the decision by a California grand jury to indict Michael Jackson in the child molestation case against him.

CNN's Miguel Marquez is live in Santa Barbara for us this morning with the very latest. Miguel, good morning. MIGUEL MARQUEZ, CNN: Good morning to you, Soledad. For 13 days that grand jury heard and considered testimony against Michael Jackson, and they did return an indictment. All of this related to molestation allegations from February of 2003.

Now the new charges -- we don't know exactly what they are -- but if they move ahead in the criminal process, they will supersede the criminal complaint that was filed against Mr. Jackson on January 7. Then he was charged with seven counts of lewd and lascivious conduct against a child under 14 and two counts of administering an intoxicating agent to a child.

Now, if the Santa Barbara district attorney Thompson continues with those charges, and files them, then Mr. Jackson would probably be back in court on April 30. Mr. Jackson's lawyers prepared a statement that was OK'd by the court ahead of time for release, and they say that Mr. Jackson will be fully exonerated, and the allegations contained in the indictment will be shown to be patently false.

His lawyers also remind everybody that these are, in fact, allegations and that Mr. Jackson if he must appear in court on the 30 and it appears that he will have to appear in court on the 30 that he will plead not guilty -- Soledad.

O'BRIEN: Miguel Marquez for us this morning out in California. Thanks, Miguel, appreciate it.

Turn now to our senior legal analyst Jeff Toobin to talk a little bit more about the Michael Jackson indictment. Also, of course, the news about the Kobe Bryant case, as well, but let's start with Michael Jackson. Surprise or not?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Not really. The prosecutor said he was going to the grand jury; grand jurors almost always do what prosecutors want.

There has been an indictment. We don't know precisely what the charges are -- that under California law, indictments are not made public until the arraignment which will be next Friday but it looks like it very much tracks the complaint that Michael Jackson was arrested on last December.

O'BRIEN: Because the complaint originally had seven charges in it.

TOOBIN: Seven child molestation charges, I believe. Two charges of giving an intoxicating agent to a minor. Based on the witnesses who we know appeared before the grand jury it appears that those are very much the same charges if not exactly the same thing.

O'BRIEN: Can a grand jury come up with other charges so it could be -- really -- could be anything.

TOOBIN: Absolutely, and one of the big mysteries about the case was would more victims come forward, would there be charges relating to other children. It appears that's not the case and that makes the prosecutions case a good deal harder.

O'BRIEN: Well, the defense has said that Michael Jackson will be fully exonerated, that's a quote. What exactly does an indictment mean? It certainly does not mean that there is -- that he's guilty. It just means enough evidence to go to trial?

TOOBIN: It means a majority of the grand jurors found probable cause that Michael Jackson committed these crimes.

O'BRIEN: Doesn't mean overwhelming evidence?

TOOBIN: It doesn't mean that a -- as in a trial jury where unanimous jury has to find proof beyond a reasonable doubt so it's a much lower threshold. California the -- you can proceed from an arrest to trial either in a preliminary hearing or in grand jury the prosecutor here Mr. Sneddon decided to do a grand jury proceeding, both of which are mostly formalities. It really is -- prosecutors almost never lose at this stage. The real test in this case is ahead and part of part of it the trial jury.

O'BRIEN: The bar is lowered is what you're saying.

TOOBIN: The bar is lowered.

O'BRIEN: When you look at the list of the folks who testified before the grand jury, it seems pretty clear to me at least, not a lawyer, that the '93 case is going to play a pretty big role in the current case.

TOOBIN: Absolutely. The '93 case will be used not as separate charges, there can't be charges based on the '93 case but the prosecutors will be able to argue, look, this is a pattern of behavior. He did it before in '93, he did it in 2003.

Obviously, the defense is going to claim that both accusers, the '93 young man who got millions of dollars and this one, this current accuser, the former cancer patient, are both ultimately out for money. That's going to be a big theme with the defense here, you can be sure.

O'BRIEN: How does somebody who is as famous as Michael Jackson -- I think it's fair to say is arguably the most famous person maybe in the world -- how does he get a fair trial and how does he get a fair trial in Santa Barbara, which certainly just looking at it racially does not reflect, you know, a jury of his peers, necessarily.

TOOBIN: You are not entitled to a jury of your peers in the sense of people who are just like you, whether racially, in terms of fame, he is not -- this is the county where he lives, and what's peculiar about this case is I don't think the publicity is so much concentrated in Santa Barbara as opposed to spread out all over California.

So I don't know if a change of venue will do him any much good. I think there's going to be a tremendous amount of voir dire, which is examination of potential jurors -- examining their attitudes, seeing if they're unbiased, but it's going to be a real challenge to get an unbiased jury on this case. I don't think it's going to be easy.

O'BRIEN: Quick question about Kobe Bryant -- how big of a set back is this -- the judge now ruling that this information, medical history -- is not going to be allowed to be used by the defense. Big deal or not big deal?

TOOBIN: It's definitely a set back. It is not a huge set back. There are a lot of other issues that the judge still has to deal with, most importantly the judge is going to still have to address the issue of the accusers sexual behavior in the period around the time of the alleged assault by Kobe Bryant and this ruling today has nothing to do with that...

O'BRIEN: That's next week.

TOOBIN: That's when she's -- the judge is going to start hearing evidence on that but -- but this hearing relates only to the medical records of her psychiatric treatment earlier in 2003.

O'BRIEN: Which means they can't talk about it, or they just don't have access to the records?

TOOBIN: They don't have access to the records. When she takes the stand, almost certain that they will be allowed to ask about these medical -- these mental health incidents that took place earlier in the year but they won't have the documents to cross examine her with.

O'BRIEN: Interesting developments in both of these cases.

TOOBIN: Lots more to talk about.

O'BRIEN: Jeff Toobin, as always, thanks -- Bill.

HEMMER: Soledad, at 10 past the hour.

The Pentagon may run out of money for the war in Iraq by the end of this summer. Two senators now saying that election year politics might be keeping the Bush administration from asking for more money before November.

The senators, Joe Biden, a Democrat and Chuck Hagel, a Republican seem to disagree with the White House on $50 billion that may be needed in the next fiscal year. The chairman of the joint chiefs says the military is spending close to $5 billion a month and that it will cost $700 million just to pay for the troops whose tour in Iraq was recently extended by three months.

(BEGIN VIDEO CLIP)

GEN. RICHARD MYERS, CHAIRMAN, JOIN CHIEFS OF STAFF: The increased operations tempo, keeping what's going to turn out to be a force of around 20,000, which includes the First Armored Division and that's the bulk of it.

Additional time in Iraq is going to cost us more money. We estimate right now we are working those estimates right now, let me just say that. And we've got to take a look and see if we have the wherewithal inside the DOD budget.

(END VIDEO CLIP)

HEMMER: That was from yesterday. This morning Barbara Starr is at the Pentagon; we'll get to her a bit later in our program today.

Also, an independent panel looking into allegations of corruption in the Iraqi oil for food program. U.N. Secretary General Kofi Annan endorsing an independent probe yesterday.

That is set up to investigate whether or not top U.N. officials allegedly took bribes and kickbacks. Former Fed Reserve Chairman Paul Volker is the chairman of that.

U.S. lawmakers claim that billions of dollars of oil revenue flow to Saddam Hussein's regime illegally. They're also looking at the possibility that maybe this money went to Moscow, perhaps to Paris and maybe even here to some people living in the U.S.

Christopher Shays is heading up a House Committee in D.C. We'll talk to him next hour on that.

O'BRIEN: And still to come this morning, there is a big celebration for troops who are returning to Fort Hood from Iraq but their happiness could be short lived. We'll explain.

HEMMER: Also we'll talk live to the man who escaped a deadly tornado by mere seconds. He says it was a sixth sense. To Illinois in a moment on that story.

O'BRIEN: And Donald Trump about to get some competition. How many billionaires can be on TV at the same time? That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Ah, there she is. This morning the Queen Mary II made her way past Lady Liberty and into New York Harbor.

The luxury liner made up some lost time that was lost overnight after some bad weather. Its arrival in the Big Apple on schedule after its maiden westbound transatlantic voyage.

Some 2,600 passengers were on board, along with over 1,000 crewmembers. The Queen Mary II cost $1 billion to build. It's the world's largest cruise ship.

Here's a list of what's on -- what you get there. What you get for your money. Cayman ranch (ph) massage on the Queen Mary II. First planetarium on the Queen Mary II. Largest ballroom at sea, the largest library at sea, the largest wine collection at sea; and also children's facilities and British nannies to take care of them.

HEMMER: Ah, perfect for your family.

O'BRIEN: Quite lovely, actually. I would leave my children home if I were going to spend all that money on the Queen Mary II.

HEMMER: A modern day Titanic, huh?

O'BRIEN: Pretty neat, though, to see it pull in, huh?

HEMMER: Maiden voyage here in New York City now. That's one homecoming.

Here's another to talk about. The Army's fourth ID getting a big time welcome home there in Fort Hood Texas.

A star-studded celebration, literally, for that group that captured Saddam Hussein. The Fourth ID and other returning units spent almost a year on the front lines in Iraq.

Major General Ray Odierno, commander of the Fourth ID with us now back here on AMERICAN MORNING to talk about today's events and the mixed emotions surrounding it.

Welcome back to AMERICAN MORNING and good morning to you.

Want to get to the event today in Fort Hood but first the initial reaction you have knowing that the Pentagon is drawing up plans to possibly send either fresh troops this summer or even more troops in the 137,000 there currently.

Some are suggesting your unit would be prime picking to send back to Iraq. Your reaction to that, General?

MAJ. GEN. RAY ODIERNO, COMMANDER 4TH INFANTRY DIV.: Well, of course, my comment is we will do whatever it takes to win this war and we're going to do whatever our country needs us to do and so as decisions are made we'll be ready and that's we're now getting back and the first thing we'll do is get our soldiers and equipment ready to re-deploy anywhere in the world that we're needed.

That's our job, that's what the American people pay us to do, and we're proud to do that and so we'll continue to be prepared to do that when called upon.

HEMMER: Also in the topic of coalitions, Spain's decision, the Dominican Republics decision, Honduras, how will that impact military strategy in Iraq today with that ongoing war?

ODIERNO: Well, I think we'll just continue on with our current strategy. Of course we want to build a coalition and I think the coalition will continue to grow as we move forward and its important that we have a lot of different coalition partners and I think we're working that and that will occur, but in terms of our strategy we'll not change it at all.

HEMMER: What can you say about morale between the 4th ID. By my count, General, 79 lives lost in Iraq. With the 4th Infantry Division.

ODIERNO: Well first we'll never forget those who gave up their lives. That they gave the ultimate sacrifice, their families we'll always be indebted to their families and what they did. But the morale is very good.

They understood why they were there; they understood the mission that they were there to accomplish. They realize they made some great accomplishments while they were over there.

Morale is high; they're great to be back home. But a minute doesn't go by that we don't about our other comrades that are still over there in harms way.

HEMMER: Let's talk about today. Some say it's going to rival Woodstock. Is that more than PR? What's going to happen?

ODIERNO: Well, I'm not sure it's going to be -- as big as Woodstock but I mean it's going to be a great celebration and it shows the American -- shows how supportive the American people are of our soldiers and that's very important to me and to all of us leaders here in the Army that we know that our soldiers are appreciated by the American public and its being shown today and we're going to have tens and twenties of stars here today to celebrate our homecoming as we officially uncase our colors to celebrate our welcome home.

HEMMER: Well one more thought here. Drew Carey, Jessica Simpson, Ludicrous, Lynyrd Skynyrd, cheerleaders from the Dallas Cowboys, cheerleaders from the New England Patriots -- you mentioned in your previous answer why morale was so high. Explain to us why that has maintained that level.

ODIERNO: I think -- again -- they understood what they did. They understood that they took down part of the insurgency. They understood the progress that has been made in most of Iraq and they really feel good about that and they feel really good about the reception they've gotten from the American people and the support that everyone throughout the entire country has shown to our soldiers.

HEMMER: Thank you, sir. Ray Odierno, Major General, Fort Hood, Texas -- enjoy today and well deserved.

ODIERNO: Thank you very much. Thank you.

O'BRIEN: Still to come this morning pop star Michael Jackson indicted by a grand jury -- we've got the latest details in his child molestation case straight ahead.

Plus will a former high-flying Enron executive wind up in court sooner than he expected? That story is ahead as AMERICAN MORNING continues, stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Alan Greenspan says interest rates have to go up some time. Andy Serwer "Minding Your Business." Good morning to you.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning to you. The Fed Chairman basically holding up a sign, Soledad. Very clear saying interest rates must rise at some point. Not quite the same reaction on Wall Street yesterday.

Response a little bit more muted. I think the big fireworks were on Tuesday. You can see here stocks up across the board, this after the plunge on Tuesday.

What that means is interest rates on CDs, interest rates on your savings accounts will be going up. That's the good news but of course you'll be paying more on credit cards, mortgages and car loans.

Not saying when rates are going up, of course. Not holding his hand, showing his hand, but preparing folks, preparing people on Wall Street, preparing businesses, preparing the rest of us. What happened in 1994, Soledad, rates went up, "Wall Street Journal" has a story on that -- caused a lot of problems, Orange County in California went in the deep soup you may remember.

The Mexican economy as well and Kidder Peabody here on Wall Street got in a lot of trouble. So, this is an inflection point as the economists say, a turn in the economy and the Fed Chairman wants to be very clear that we're seeing it coming.

O'BRIEN: So the stock news, about a Taser -- I got to tell you -- high five to you -- you were so right.

SERWER: Well, you know, I wish I was right like that all the time. Taser makes stun guns and boy investors getting zapped in this one.

This thing gone through the roof, gone from one dollar to $118 early in the week. It's now at $84. That's a pretty sharp drop. A lot of these little defense stocks like Mace, a couple of others, have really been flying around a lot -- it kind of reminds me of back in the 1990s with the Glow.com and Amazon going through the roof. Lot of speculation out there in the markets as well.

O'BRIEN: And then we have a story about Jeff Skilling who we had a story about -- what -- a week or so ago?

SERWER: Yes, when he was out in Manhattan partying and boy that was an ugly night for him and now -- and his wife too. Federal prosecutors now possibly want to restrict the terms of his bail saying the incident in Manhattan the other night showed that he is violating the terms of that and the police reports say that he stole a license plate from a car out in front of a bar, lifted a woman's blouse looking for an FBI wire -- this is in the report -- and it really is kind of sad -- I was talking to people close to the investigation and who have no love for him, but saying it's just really kind of pathetic.

O'BRIEN: Well they want to curtail his drinking.

SERWER: They may do that; it's unclear from the documents filed.

O'BRIEN: Well I wonder if they can legally do that or if that's just a...

SERWER: Well, they may -- you know they may want to try to keep him under wraps a little bit more.

O'BRIEN: We'll see. All right Andy thank you very much, appreciate it.

CAFFERTY: They may want to chain him in front of the building down there and feed him three times a day until the trial starts.

O'BRIEN: Then there's that option.

SERWER: Judge Jack. Tough love from Judge Jack.

O'BRIEN: Or we could not go that far.

But thank you for your input.

CAFFERTY: Just a thought. "Question of the Day" has to do with all of the information we're getting about these guys who want to be president.

John Kerry releasing information about 200 lobbyists that he's met with since 1989. This according to "The Washington Post." But we still don't know who attended those energy policy meetings in the Bush White House back a year or two ago.

Kerry began posting his military records on his Web site this week -- he promises more medical information will be forthcoming soon. Also the senator's campaign says he's rethinking his decision to keep his wife's tax records secret. He's married to the heiress of the Heinz fortune, who is in charge of that billion-dollar foundation.

President Bush's records -- whoops -- have also been a hot topic of late, especially his military service in the National Guard. Only a few reporters have had access to his medical history and the tax time the president and his wife only made parts of their personal financial information available, making him the first president since Jimmy Carter not to give full disclosure.

So the question is this -- and it's a long way to get to but we hope it will be worth it --

HEMMER: So do we.

O'BRIEN: Oh, there was a question in there?

CAFFERTY: It even occurred to me --- I was like, God, doesn't he ever shut up? Here be the question: How much do we need to know about the presidential candidates? Please keep your answers shorter than this introduction was, though.

HEMMER: That is preferred.

CAFFERTY: Because it's wearing even me out.

O'BRIEN: That sounds like a 9/11 Commission -- a long question then keep your answer short because we're out of time.

CAFFERTY: Yes, because it's all about me.

SERWER: Just a statement really, right?

HEMMER: Thanks Judge Jack.

CAFFERTY: You're welcome. Any time.

O'BRIEN: Still to come this morning he's a record producer, a clothing designer, a marathoner. Well now P. Diddy heads to the Great White Way. That and a billionaire battle and the weekends top movies for our "90-Second Pop" in a moment.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com