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CNN Live Today
Saddam Hussein No Longer a Prisoner of War; A New Designation for U.S. Marine Missing in Iraq
Aired June 30, 2004 - 10:00 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.
DREW GRIFFIN, CNN GUEST ANCHOR: Good morning to you all. From the CNN headquarters in Atlanta, I'm Drew Griffin in for Daryn Kagan this morning.
Saddam Hussein no longer a prisoner of war. The United States handed legal custody of the ousted Iraqi leader to the new Iraqi government today, along with 11 other top members of Hussein's regime. The U.S. will continue to guard all 12, until an Iraqi security apparatus is in place. Hussein expected to appear in court tomorrow. He'll face charges of crimes against humanitarian and genocide.
News reports say hundreds of terror detainees, currently being held at Guantanamo Bay in Cuba, could be moved to prisons the U.S. The Bush administration considering the move as a response to the recent Supreme Court ruling, granting military prisoners access to the U.S. courts. The government is considering other options, like opening a makeshift court in Cuba, and asking Congress to designate one federal court to try all the cases.
One newspaper described him as New York's most hated. Igniting a firestorm of controversy, convicted child killer Joel Steinberg was released from prison about an hour ago. Steinberg served a minimum two-thirds of a maximum 25-year manslaughter sentence. In 1987, the 63-year-old lawyer was convicted of viciously beating his 6-year-old adopted daughter, Lisa, who later died due to her injuries.
And if you are shopping for a home, you might want to seal a deal and quick. At the end of its meeting today, the Federal Reserve will likely boost interest rates for the first time in four years. Experts predict the fed will raise short-term rates one-quarter percentage point, which would lead to higher rates for borrowers and for savers.
The most notorious prisoner of war in Iraq is now that country's most famous criminal suspect. We go live to our Baghdad bureau chief, Jane Arraf, with today's change in status for Saddam Hussein.
Good morning to you, Jane.
JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Good morning, Drew. Well, it was perhaps a moment that millions of Iraqis have been waiting for, the ex-president, ex-leader Saddam Hussein, handed back legally to Iraqi authorities. Sorry about the noise here, Drew. A lot of surveillance helicopters overhead. Still attacks expected today on what was supposed to be the day that Iraqis received its sovereignty back. That happened two days ago, of course. And today's big news was the handover of Saddam Hussein. Now, physically he is still in American custody, still safe and sound, according to officials. But the head of the tribunal that is to try him, Salem Chalabi, said he appeared to be told that he was now in Iraqi legal custody, looking shaken but in good health. He has apparently lost weight. He's also lost that long hair and the tangled beard when we last saw him in pictures during his capture in December.
Other members of his former regime were also taken to be presented to Iraqi authorities. They include 11 members, his personal secretary, who, according to an official there, said "I did nothing wrong." As well as Ali Hassan al Majid, also known as "Chemical Ali," for his alleged attacks with chemical weapons on the Kurds, who complained that they did not give him a chair to sit in, giving him the respect that he said he was due. They'll appear again tomorrow to be formally read the charges against them -- Drew.
GRIFFIN: Jane, I know you're batting against helicopters there. But I want to ask you one question. Are we going to see Saddam or any of these other people? More importantly, are the Iraqis going to be able to see any of this custody in videotape or pictures?
ARRAF: Definitely. Iraqi officials are quite clear about this, that they believe it's vitally important that Iraqis actually get to see Saddam being put on trial. Now what that means practically is essentially that Thursday, when he appears in the charges are read to him, there will likely be images of him that the Iraqi people will be able to see.
As for the trial, that's likely not to be months -- until months from now. And it will probably take months, the trial itself. But people are desperate to see obviously what he looks like, the first glimpse that they will have of him in more than eight months -- Drew.
GRIFFIN: Jane, thank you for that.
Though Saddam Hussein in legal custody of the Iraqis, he will be held by coalition forces, as Jane reported, until a secure Iraqi facility is ready.
Dan Senor, the former chief adviser to the coalition spoke with CNN's "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
DAN SENSOR, FMR. COALITION SPOKESMAN: This is something that the Iraqis are deeply committed to. They have asked us to help with the security of Saddam Hussein, which is why we will maintain the physical custody. The last thing they want is Saddam Hussein being killed or being freed. But as far as the legal proceedings are concerned and the fate of Saddam Hussein, it is in the hands of the Iraqi people.
(END VIDEO CLIP)
GRIFFIN: The violence continuing in Iraq. Insurgents launching a mortar attack on a U.S. Army base near Baghdad International Airport this morning. Eleven soldiers wounded. At least 10 mortar rounds hit that base. The base is operated by New Mexico's Army National Guard 515-Corps Support Battalion.
There is a new designation for a U.S. Marine missing in Iraq. Since June 19, military officials are now classifying Marine Corporal Wassef Hassoun as captured and no longer as a deserter.
For more, here is CNN's Ed Lavendera, standing by in Hassoun's home in West Jordan, Utah.
Good morning, Ed.
ED LAVENDERA, CNN CORRESPONDENT: Good morning, Drew. Well, the family here learning of this change in designation that Corporal Wassef Ali Hassoun is now listed as captured by the U.S. military. Of course, the family has been very confident of that since Sunday, since they first saw the broadcast images of Corporal Hassoun on Arab television. They've known from very early on that indeed was their relative.
The family here in Utah remains silent. The only relatives that we've heard from over the last couple of days are the father and one of Corporal Hassoun's brother that lives in Lebanon. Those are the only relatives we've heard from.
One of the issues that has come up here is what U.S. military says that they have been investigating over the course of the last week. And that is just exactly how Corporate Hassoun left the U.S. base around Fallujah on June 19. He was last seen June 19 on the base. June 20 he did not report to work, according to U.S. military. And now the early assessment was -- the early thinking was that Corporate Hassoun had voluntarily left the base on his own.
A "New York Times" report this morning adding a little bit more detail to that report, quoting a Marine officer in Baghdad, saying that Corporal Hassoun had become extremely traumatized after seeing a fellow soldier be killed in action. And because of that, Corporal Hassoun had befriended some Iraqis that worked on the base, and had come up with a way of using them to get away from the base. Perhaps trying to reach his family in Lebanon. The report continues to say that those same Iraqis that he befriended and helped him off the base then later turned on him, turning him over to the Islamic insurgents.
Last late night, there was a press conference here in Salt Lake City, where the family was passing over control as to how information would be handled on behalf of this family. U.S. Marines here in Utah helping them out. But a family spokesperson last night did say that they have no comment on this report. And they remain silent here. So they had been saying for the last couple of days they will remain silent until Corporal Hassoun's fate has been resolved -- Drew.
GRIFFIN: So, Ed, there's no indication from the family whether or not he was distraught or complaining about his service over in the war.
LAVENDERA: Not that we've heard from here in Utah. I mean we haven't heard anything like that as well coming from the relatives that have been speaking a little bit out of Lebanon. We just haven't gotten anything of that nature from the family. However, the U.S. military has been -- although they haven't come out and fully said what their investigation has turned up or is turning up, but we have heard a little bit of it. "The New York Times" report this morning adding the extra details that we talked about.
GRIFFIN: All right. Ed Lavendera reporting from Utah, thank you very much.
There has been no word on one other U.S. service man held prisoner by Iraqi insurgents. Army Specialist Matt Maupin, he was captured on April 9. The military has not confirmed reports that he was shot and killed by the insurgents.
About 3,000 people attended a funeral today for a South Korean man beheaded by Islamic militants in Iraq last week. Kim Song Il was an interpreter, who had pleaded for his life in a videotape released by his abductors. Kim's family today released their own statement ending with, "We embrace the nation of Iraq," they say. "We love the people of Iraq."
Another surprise in the Scott Peterson murder trial. Peterson may have talked about getting rid of a dead body years before his wife was killed. A live report on that straight ahead.
Roller coaster rain-out. Record storms wash out a popular amusement park. Find out where severe weather is headed next.
Plus...
(BEGIN VIDEO CLIP)
TOBEY MCGUIRE, ACTOR: Hey, you guys. No playing...
(END VIDEO CLIP)
GRIFFIN: "Spider-man 2" swings into theaters. Is the sequel better than the first? Stay with us for a sneak peek.
(COMMERCIAL BREAK)
GRIFFIN: Six Flags over Texas became Six Flags under water. Floodwaters rolled through the amusement park shutting it down. The park plans to reopen today, but routine safety inspections have to be done before rides can start up. It's been a very soggy month for north Texas. Tuesday marked the 17-day of rain for June.
And in Arizona, massive plumes of smoke are still rising from the Tonto National Forest this morning. Some 800 firefighters trying to contain a stubborn wildfire, 32,000 acres burned. The wildfires within six miles of the mountain community of Payson and its 14,000 residents. The blaze is only 3 percent contained. Officials say the fire probably won't reach the community.
Well, we have potentially damaging testimony in the Scott Peterson case. Prosecutors dropping a bombshell this time on the defense. A live report ahead. And remember Paula Jones? She once sued President Clinton for sexual harassment. Now she wants to debate him. We'll tell you why when CNN LIVE returns.
(COMMERCIAL BREAK)
GRIFFIN: In California, three teens accused of videotaping the rape of a 16-year-old girl will be tried again. Prosecutors deciding to retry the trio after a judge declared a mistrial on Monday. Jurors had said they were hopelessly deadlocked on the charges. Prosecutors maintain the teens drugged and raped the girl. But defense attorneys say the sex was consensual.
In another high-profile case up north in California, how to dispose of a dead body. That was the focus of the Scott Peterson murder trial on Tuesday.
CNN's Rusty Dornin is live in Redwood City, California with more on a stunning development; we're told, this time from the prosecution -- Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Well, Drew, after five days on the stand, much of it grueling cross-examination, prosecutors had a chance to re-ask detective Al Brocchini some questions, and some clouds that were hanging over his conduct. The prosecutor seemed to regain some ground. And observers say they even gave the defense a bit of their own medicine.
(BEGIN VIDEOTAPE)
DORNIN (voice-over): A bombshell dropped, by prosecutors fizzled, less than an hour later. Detective Al Brocchini testified police had received a tip from a man claiming Peterson told him nine years ago, that the perfect way to get rid of a dead body would be to weight the neck and arms with anchors and throw it into the sea. Exactly what prosecutors claim Scott Peterson did to his wife. But when questioned by the defense, Brocchini admitted the witness was not credible.
Court observers say it might be prosecutors exercising a bit of their own gamesmanship.
UNIDENTIFIED MALE: If the defense counsel opens the door wide to what would otherwise be hearsay, then the prosecution gets to walk through that door and bring in things that defense counsel might not want to hear.
DORNIN: The jury did hear about the part of an interview Brocchini admitted to leaving out of his report. He testified another detective, who conducted the original interview, put the details in his report. Prosecutors hope to dispel the inference by the defense that police were trying to cover up information.
And this week, the court released evidence photos taken at the defendant's house. The mop and bucket Peterson says his wife was using when he left the house the day she disappeared. Rags on top of the washing machine, he says he took out so he could wash the clothes he wore fishing. Laci Peterson's purse, left hanging on the hook in the bedroom, and the baby's room, blue with the much talked about nautical theme.
(END VIDEOTAPE)
DORNIN: Prosecutors seemed to run out of some of that steam they started off the day with. Three more witnesses after Brocchini, there was a gun expert who talked about Scott Peterson's gun that had never been fired. And then two men, who were business associates of Scott Peterson, talked about a very awkward dinner with another woman where he -- Scott Peterson and the woman talked about some very sexually explicit acts. And the woman was the one who set up Scott Peterson to meet Amber Frey -- Drew.
GRIFFIN: Speaking of, Rusty, when are we going to see Amber Frey or even the lead detective in this case? Are we ramping up to that?
DORNIN: No. Well, it's good question on Amber Frey. A lot of observers are saying it's likely to be towards the end to leave an impression on the jury. Not sure. They seem to be mixing up the investigators and the witnesses.
We might hear from the Sean Sibley who set up Scott Peterson and Amber Frey. She might be the likely next witness. But they may again throw in that lead investigator. I know that defense attorney Mark Geragos, I'm sure, will have a field day with him as well.
GRIFFIN: All right. Rusty, thanks. We'll look forward to today's developments up there in California.
Armed bank robbers caught in the act like you've never seen it before. They make their getaway and it's all caught on some incredible video. There is a gunman right there checking for his friends inside. We'll tell you what happened there.
And borrowing money as interest rates are expected to go up.
Gerri, have any advice for us?
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: I sure do. Good to see you, Drew. Look, interest rates expected to go up today. The party is over for consumers. We're going to tell you exactly what to do when CNN LIVE TODAY continues.
(COMMERCIAL BREAK)
GRIFFIN: We go to our Gerri Willis, who is going to tell us exactly what to prepare for, as the fed begins to raise interest rates over a long period of time, we're told.
Gerri, what can you tell us? "Top Five Tips" this morning.
WILLIS: Yes. Right. Exactly. It could be several rate hikes. We're going to find out later in the day what happens. The expectation that rates will go up a quarter point. But let me tell you, pay attention, particularly if you carry a lot of debt on your credit card. Because rates are going to go up and go up quickly. At first you won't see a big change, maybe a quarter of a point or so. But over the course of nine months, particularly if we have several rate hikes, you're going to see as much as a full percentage point increase for your credit card.
And Drew, here is the really bad news. If you miss a payment or you're late with a payment, the penalty APR could go up to 30 percent. Remember, the average APR, 13.5 percent. So watch out. Get those payments in on time.
GRIFFIN: So this is like a gas price. You know, it just goes up a penny in Saudi Arabia, and it goes up 20 cents here.
(LAUGHTER)
WILLIS: Yes. It's not pretty. It's really not pretty. You got to kiss those record low rates goodbye. Check this out. Right now the 30-year fixed rate mortgage is at 6.25 percent. The all-time low, 5.21 percent. This is a big difference for people out in the marketplace right now. The party is really over. By the end of the year, Drew, rates could go to 7 percent. That's a very big difference for so many people out there.
GRIFFIN: A lot of those mortgage rates, Gerri, have been going up just recently. Will they go up even more after this specific event today?
WILLIS: Well, we definitely could see rates continue to rise. You want to think twice, though, before you start using your home as a piggy bank. You know, that's been the big parlor game over the last few hours. People taking money out of their house, using home equity lines of credit, home equity loans. You see it happen all the time.
But let me tell you, those heal-locks (ph), they have a variable rate of interest. They're going to start skyrocketing up. You're going to see a lot of that going on. And you'll definitely want to pay attention, because there are no limits, really, on how high those rates can go. They're usury limits, 18 percent. But for a lot of people, you're going to see big changes in the next two to three billing cycles.
GRIFFIN: Student loans. What should we do about those?
WILLIS: Student loans is the only place were rates are coming out. Check it out. If you have a student loan guaranteed by the government, the rates this year at a 39-year low. If you just graduated, consolidate that debt. You're going to get a record low rate. It's a beautiful thing. If you're buying a car, rates going higher. Check out what the dealership is offering. That may be the best deal you can get.
GRIFFIN: Any good news for any of us out there?
WILLIS: Savers. Savers are going to get more for putting their money aside, and people will want to do it more and more. CDs, money market funds, they're all going to pay more. But still those rates fairly low. We want to show you some ideas here of funds that pay a little bit more, if you're willing to set it aside.
You see here Fidelity Ultra Short Bond Fund. All good funds here recommended by Morningstar. If you're setting aside money and you want to be able to get it out quickly, you can certainly do it with these funds -- Drew.
GRIFFIN: All right, Gerri Willis, thank you for the "Top Five Tips," as we anticipate the Federal Reserve raising that interest rate a wee bit today. Thank you.
WILLIS: Thank you.
GRIFFIN: Well, it is eyewitness video, the fiery result of a bank robbery. And the crime all caught on camera. More on that story and how we got the video straight ahead.
Plus, the buzz on "Spider-man." Does the summer sequel live up to the hype? May be more so. We'll get Mr. Moviefone's spin later on CNN LIVE TODAY.
(COMMERCIAL BREAK)
GRIFFIN: Back with the top stories at this hour.
An attorney hired by Saddam Hussein's family says the courts and judges, as well as the war in Iraq are all illegal. The comments came after the Iraqi government took legal custody of the former dictator today. Saddam expected in court tomorrow.
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 June 30, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DREW GRIFFIN, CNN GUEST ANCHOR: Good morning to you all. From the CNN headquarters in Atlanta, I'm Drew Griffin in for Daryn Kagan this morning.
Saddam Hussein no longer a prisoner of war. The United States handed legal custody of the ousted Iraqi leader to the new Iraqi government today, along with 11 other top members of Hussein's regime. The U.S. will continue to guard all 12, until an Iraqi security apparatus is in place. Hussein expected to appear in court tomorrow. He'll face charges of crimes against humanitarian and genocide.
News reports say hundreds of terror detainees, currently being held at Guantanamo Bay in Cuba, could be moved to prisons the U.S. The Bush administration considering the move as a response to the recent Supreme Court ruling, granting military prisoners access to the U.S. courts. The government is considering other options, like opening a makeshift court in Cuba, and asking Congress to designate one federal court to try all the cases.
One newspaper described him as New York's most hated. Igniting a firestorm of controversy, convicted child killer Joel Steinberg was released from prison about an hour ago. Steinberg served a minimum two-thirds of a maximum 25-year manslaughter sentence. In 1987, the 63-year-old lawyer was convicted of viciously beating his 6-year-old adopted daughter, Lisa, who later died due to her injuries.
And if you are shopping for a home, you might want to seal a deal and quick. At the end of its meeting today, the Federal Reserve will likely boost interest rates for the first time in four years. Experts predict the fed will raise short-term rates one-quarter percentage point, which would lead to higher rates for borrowers and for savers.
The most notorious prisoner of war in Iraq is now that country's most famous criminal suspect. We go live to our Baghdad bureau chief, Jane Arraf, with today's change in status for Saddam Hussein.
Good morning to you, Jane.
JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Good morning, Drew. Well, it was perhaps a moment that millions of Iraqis have been waiting for, the ex-president, ex-leader Saddam Hussein, handed back legally to Iraqi authorities. Sorry about the noise here, Drew. A lot of surveillance helicopters overhead. Still attacks expected today on what was supposed to be the day that Iraqis received its sovereignty back. That happened two days ago, of course. And today's big news was the handover of Saddam Hussein. Now, physically he is still in American custody, still safe and sound, according to officials. But the head of the tribunal that is to try him, Salem Chalabi, said he appeared to be told that he was now in Iraqi legal custody, looking shaken but in good health. He has apparently lost weight. He's also lost that long hair and the tangled beard when we last saw him in pictures during his capture in December.
Other members of his former regime were also taken to be presented to Iraqi authorities. They include 11 members, his personal secretary, who, according to an official there, said "I did nothing wrong." As well as Ali Hassan al Majid, also known as "Chemical Ali," for his alleged attacks with chemical weapons on the Kurds, who complained that they did not give him a chair to sit in, giving him the respect that he said he was due. They'll appear again tomorrow to be formally read the charges against them -- Drew.
GRIFFIN: Jane, I know you're batting against helicopters there. But I want to ask you one question. Are we going to see Saddam or any of these other people? More importantly, are the Iraqis going to be able to see any of this custody in videotape or pictures?
ARRAF: Definitely. Iraqi officials are quite clear about this, that they believe it's vitally important that Iraqis actually get to see Saddam being put on trial. Now what that means practically is essentially that Thursday, when he appears in the charges are read to him, there will likely be images of him that the Iraqi people will be able to see.
As for the trial, that's likely not to be months -- until months from now. And it will probably take months, the trial itself. But people are desperate to see obviously what he looks like, the first glimpse that they will have of him in more than eight months -- Drew.
GRIFFIN: Jane, thank you for that.
Though Saddam Hussein in legal custody of the Iraqis, he will be held by coalition forces, as Jane reported, until a secure Iraqi facility is ready.
Dan Senor, the former chief adviser to the coalition spoke with CNN's "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
DAN SENSOR, FMR. COALITION SPOKESMAN: This is something that the Iraqis are deeply committed to. They have asked us to help with the security of Saddam Hussein, which is why we will maintain the physical custody. The last thing they want is Saddam Hussein being killed or being freed. But as far as the legal proceedings are concerned and the fate of Saddam Hussein, it is in the hands of the Iraqi people.
(END VIDEO CLIP)
GRIFFIN: The violence continuing in Iraq. Insurgents launching a mortar attack on a U.S. Army base near Baghdad International Airport this morning. Eleven soldiers wounded. At least 10 mortar rounds hit that base. The base is operated by New Mexico's Army National Guard 515-Corps Support Battalion.
There is a new designation for a U.S. Marine missing in Iraq. Since June 19, military officials are now classifying Marine Corporal Wassef Hassoun as captured and no longer as a deserter.
For more, here is CNN's Ed Lavendera, standing by in Hassoun's home in West Jordan, Utah.
Good morning, Ed.
ED LAVENDERA, CNN CORRESPONDENT: Good morning, Drew. Well, the family here learning of this change in designation that Corporal Wassef Ali Hassoun is now listed as captured by the U.S. military. Of course, the family has been very confident of that since Sunday, since they first saw the broadcast images of Corporal Hassoun on Arab television. They've known from very early on that indeed was their relative.
The family here in Utah remains silent. The only relatives that we've heard from over the last couple of days are the father and one of Corporal Hassoun's brother that lives in Lebanon. Those are the only relatives we've heard from.
One of the issues that has come up here is what U.S. military says that they have been investigating over the course of the last week. And that is just exactly how Corporate Hassoun left the U.S. base around Fallujah on June 19. He was last seen June 19 on the base. June 20 he did not report to work, according to U.S. military. And now the early assessment was -- the early thinking was that Corporate Hassoun had voluntarily left the base on his own.
A "New York Times" report this morning adding a little bit more detail to that report, quoting a Marine officer in Baghdad, saying that Corporal Hassoun had become extremely traumatized after seeing a fellow soldier be killed in action. And because of that, Corporal Hassoun had befriended some Iraqis that worked on the base, and had come up with a way of using them to get away from the base. Perhaps trying to reach his family in Lebanon. The report continues to say that those same Iraqis that he befriended and helped him off the base then later turned on him, turning him over to the Islamic insurgents.
Last late night, there was a press conference here in Salt Lake City, where the family was passing over control as to how information would be handled on behalf of this family. U.S. Marines here in Utah helping them out. But a family spokesperson last night did say that they have no comment on this report. And they remain silent here. So they had been saying for the last couple of days they will remain silent until Corporal Hassoun's fate has been resolved -- Drew.
GRIFFIN: So, Ed, there's no indication from the family whether or not he was distraught or complaining about his service over in the war.
LAVENDERA: Not that we've heard from here in Utah. I mean we haven't heard anything like that as well coming from the relatives that have been speaking a little bit out of Lebanon. We just haven't gotten anything of that nature from the family. However, the U.S. military has been -- although they haven't come out and fully said what their investigation has turned up or is turning up, but we have heard a little bit of it. "The New York Times" report this morning adding the extra details that we talked about.
GRIFFIN: All right. Ed Lavendera reporting from Utah, thank you very much.
There has been no word on one other U.S. service man held prisoner by Iraqi insurgents. Army Specialist Matt Maupin, he was captured on April 9. The military has not confirmed reports that he was shot and killed by the insurgents.
About 3,000 people attended a funeral today for a South Korean man beheaded by Islamic militants in Iraq last week. Kim Song Il was an interpreter, who had pleaded for his life in a videotape released by his abductors. Kim's family today released their own statement ending with, "We embrace the nation of Iraq," they say. "We love the people of Iraq."
Another surprise in the Scott Peterson murder trial. Peterson may have talked about getting rid of a dead body years before his wife was killed. A live report on that straight ahead.
Roller coaster rain-out. Record storms wash out a popular amusement park. Find out where severe weather is headed next.
Plus...
(BEGIN VIDEO CLIP)
TOBEY MCGUIRE, ACTOR: Hey, you guys. No playing...
(END VIDEO CLIP)
GRIFFIN: "Spider-man 2" swings into theaters. Is the sequel better than the first? Stay with us for a sneak peek.
(COMMERCIAL BREAK)
GRIFFIN: Six Flags over Texas became Six Flags under water. Floodwaters rolled through the amusement park shutting it down. The park plans to reopen today, but routine safety inspections have to be done before rides can start up. It's been a very soggy month for north Texas. Tuesday marked the 17-day of rain for June.
And in Arizona, massive plumes of smoke are still rising from the Tonto National Forest this morning. Some 800 firefighters trying to contain a stubborn wildfire, 32,000 acres burned. The wildfires within six miles of the mountain community of Payson and its 14,000 residents. The blaze is only 3 percent contained. Officials say the fire probably won't reach the community.
Well, we have potentially damaging testimony in the Scott Peterson case. Prosecutors dropping a bombshell this time on the defense. A live report ahead. And remember Paula Jones? She once sued President Clinton for sexual harassment. Now she wants to debate him. We'll tell you why when CNN LIVE returns.
(COMMERCIAL BREAK)
GRIFFIN: In California, three teens accused of videotaping the rape of a 16-year-old girl will be tried again. Prosecutors deciding to retry the trio after a judge declared a mistrial on Monday. Jurors had said they were hopelessly deadlocked on the charges. Prosecutors maintain the teens drugged and raped the girl. But defense attorneys say the sex was consensual.
In another high-profile case up north in California, how to dispose of a dead body. That was the focus of the Scott Peterson murder trial on Tuesday.
CNN's Rusty Dornin is live in Redwood City, California with more on a stunning development; we're told, this time from the prosecution -- Rusty.
RUSTY DORNIN, CNN CORRESPONDENT: Well, Drew, after five days on the stand, much of it grueling cross-examination, prosecutors had a chance to re-ask detective Al Brocchini some questions, and some clouds that were hanging over his conduct. The prosecutor seemed to regain some ground. And observers say they even gave the defense a bit of their own medicine.
(BEGIN VIDEOTAPE)
DORNIN (voice-over): A bombshell dropped, by prosecutors fizzled, less than an hour later. Detective Al Brocchini testified police had received a tip from a man claiming Peterson told him nine years ago, that the perfect way to get rid of a dead body would be to weight the neck and arms with anchors and throw it into the sea. Exactly what prosecutors claim Scott Peterson did to his wife. But when questioned by the defense, Brocchini admitted the witness was not credible.
Court observers say it might be prosecutors exercising a bit of their own gamesmanship.
UNIDENTIFIED MALE: If the defense counsel opens the door wide to what would otherwise be hearsay, then the prosecution gets to walk through that door and bring in things that defense counsel might not want to hear.
DORNIN: The jury did hear about the part of an interview Brocchini admitted to leaving out of his report. He testified another detective, who conducted the original interview, put the details in his report. Prosecutors hope to dispel the inference by the defense that police were trying to cover up information.
And this week, the court released evidence photos taken at the defendant's house. The mop and bucket Peterson says his wife was using when he left the house the day she disappeared. Rags on top of the washing machine, he says he took out so he could wash the clothes he wore fishing. Laci Peterson's purse, left hanging on the hook in the bedroom, and the baby's room, blue with the much talked about nautical theme.
(END VIDEOTAPE)
DORNIN: Prosecutors seemed to run out of some of that steam they started off the day with. Three more witnesses after Brocchini, there was a gun expert who talked about Scott Peterson's gun that had never been fired. And then two men, who were business associates of Scott Peterson, talked about a very awkward dinner with another woman where he -- Scott Peterson and the woman talked about some very sexually explicit acts. And the woman was the one who set up Scott Peterson to meet Amber Frey -- Drew.
GRIFFIN: Speaking of, Rusty, when are we going to see Amber Frey or even the lead detective in this case? Are we ramping up to that?
DORNIN: No. Well, it's good question on Amber Frey. A lot of observers are saying it's likely to be towards the end to leave an impression on the jury. Not sure. They seem to be mixing up the investigators and the witnesses.
We might hear from the Sean Sibley who set up Scott Peterson and Amber Frey. She might be the likely next witness. But they may again throw in that lead investigator. I know that defense attorney Mark Geragos, I'm sure, will have a field day with him as well.
GRIFFIN: All right. Rusty, thanks. We'll look forward to today's developments up there in California.
Armed bank robbers caught in the act like you've never seen it before. They make their getaway and it's all caught on some incredible video. There is a gunman right there checking for his friends inside. We'll tell you what happened there.
And borrowing money as interest rates are expected to go up.
Gerri, have any advice for us?
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: I sure do. Good to see you, Drew. Look, interest rates expected to go up today. The party is over for consumers. We're going to tell you exactly what to do when CNN LIVE TODAY continues.
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GRIFFIN: We go to our Gerri Willis, who is going to tell us exactly what to prepare for, as the fed begins to raise interest rates over a long period of time, we're told.
Gerri, what can you tell us? "Top Five Tips" this morning.
WILLIS: Yes. Right. Exactly. It could be several rate hikes. We're going to find out later in the day what happens. The expectation that rates will go up a quarter point. But let me tell you, pay attention, particularly if you carry a lot of debt on your credit card. Because rates are going to go up and go up quickly. At first you won't see a big change, maybe a quarter of a point or so. But over the course of nine months, particularly if we have several rate hikes, you're going to see as much as a full percentage point increase for your credit card.
And Drew, here is the really bad news. If you miss a payment or you're late with a payment, the penalty APR could go up to 30 percent. Remember, the average APR, 13.5 percent. So watch out. Get those payments in on time.
GRIFFIN: So this is like a gas price. You know, it just goes up a penny in Saudi Arabia, and it goes up 20 cents here.
(LAUGHTER)
WILLIS: Yes. It's not pretty. It's really not pretty. You got to kiss those record low rates goodbye. Check this out. Right now the 30-year fixed rate mortgage is at 6.25 percent. The all-time low, 5.21 percent. This is a big difference for people out in the marketplace right now. The party is really over. By the end of the year, Drew, rates could go to 7 percent. That's a very big difference for so many people out there.
GRIFFIN: A lot of those mortgage rates, Gerri, have been going up just recently. Will they go up even more after this specific event today?
WILLIS: Well, we definitely could see rates continue to rise. You want to think twice, though, before you start using your home as a piggy bank. You know, that's been the big parlor game over the last few hours. People taking money out of their house, using home equity lines of credit, home equity loans. You see it happen all the time.
But let me tell you, those heal-locks (ph), they have a variable rate of interest. They're going to start skyrocketing up. You're going to see a lot of that going on. And you'll definitely want to pay attention, because there are no limits, really, on how high those rates can go. They're usury limits, 18 percent. But for a lot of people, you're going to see big changes in the next two to three billing cycles.
GRIFFIN: Student loans. What should we do about those?
WILLIS: Student loans is the only place were rates are coming out. Check it out. If you have a student loan guaranteed by the government, the rates this year at a 39-year low. If you just graduated, consolidate that debt. You're going to get a record low rate. It's a beautiful thing. If you're buying a car, rates going higher. Check out what the dealership is offering. That may be the best deal you can get.
GRIFFIN: Any good news for any of us out there?
WILLIS: Savers. Savers are going to get more for putting their money aside, and people will want to do it more and more. CDs, money market funds, they're all going to pay more. But still those rates fairly low. We want to show you some ideas here of funds that pay a little bit more, if you're willing to set it aside.
You see here Fidelity Ultra Short Bond Fund. All good funds here recommended by Morningstar. If you're setting aside money and you want to be able to get it out quickly, you can certainly do it with these funds -- Drew.
GRIFFIN: All right, Gerri Willis, thank you for the "Top Five Tips," as we anticipate the Federal Reserve raising that interest rate a wee bit today. Thank you.
WILLIS: Thank you.
GRIFFIN: Well, it is eyewitness video, the fiery result of a bank robbery. And the crime all caught on camera. More on that story and how we got the video straight ahead.
Plus, the buzz on "Spider-man." Does the summer sequel live up to the hype? May be more so. We'll get Mr. Moviefone's spin later on CNN LIVE TODAY.
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GRIFFIN: Back with the top stories at this hour.
An attorney hired by Saddam Hussein's family says the courts and judges, as well as the war in Iraq are all illegal. The comments came after the Iraqi government took legal custody of the former dictator today. Saddam expected in court tomorrow.
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