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American Morning

Planned Overhaul to America's Intelligence Services Has Drawn Fire From CIA, Members of Congress; Defense Will Continue Cross- Examining Amber Frey Today

Aired August 24, 2004 - 09:30   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.


ANDERSON COOPER, CNN ANCHOR: And welcome back. It is just about half past the hour on this AMERICAN MORNING. I'm Anderson Cooper, in for Bill Hemmer.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan, in for Soledad.

Some of the stories we have this half-hour, a proposal to overhaul the CIA is meeting sudden and strong resistance in Washington. Senator Pat Roberts says that he is open to suggestions, but the window for reform, he says, is short. My conversation with the senator coming up in just a few minutes.

COOPER: Also this morning, one of the biggest triumphs for the U.S., the Summer Games, now turning into the biggest controversy. In a few minutes, we'll talk to a former U.S. gymnastics coach about how judges could have botched the scoring when they awarded Paul Hamm the all-around gold medal. We'll also talk about, if anything, should be done to fix the problem.

KAGAN: Meanwhile, let's check in with Carol Costello. She's at CNN Center with what is happening now in the news.

Carol, good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning, Daryn.

Let me tell you, a small earthquake rattled Olympic venues in and around the Greek capital this morning. The Athens Geodynamic Institute says the tremor had a preliminary magnitude of 4.5. No injuries or damage reported.

Within the half hour, a House committee will meet on Capitol Hill to look at the 9/11 Commission's recommendations for U.S. diplomacy. 9/11 Commission vice chair Lee Hamilton is expected to testify before the International Relations Panel. The House Government Reform panel also set to meet at 10:00 a.m. Eastern.

A military commission in Guantanamo Bay, Cuba begins the prehearing for suspects designated U.S. enemy combatants. This image just of Salim Ahmed Hamdan Just in to CNN within the last half hour. Hamdan is accused of being one of Osama bin Laden's bodyguards. Three other men will be arraigned this week, including Australian David Hicks. His charges include conspiracy to commit war crimes.

New York City's finest and bravest are often known as rivals, but now the police and fire departments have joined forces to take on Mayor Michael Bloomberg. The groups have been working without contracts for more than two years. Police union leaders are expected in court later today, requesting an arbitrator to step in.

Back to Daryn.

KAGAN: Carol, thank you.

A planned overhaul to America's intelligence services has drawn fire from the CIA and some members of Congress. Senator Pat Roberts chairs the Intelligence Committee. He proposes combining the CIA and Defense Department's spy agencies under one new intelligence director. Democrats on his committee have complained they weren't included in the drafting of the proposal. I spoke with Senator Roberts earlier this morning.

(BEGIN VIDEOTAPE)

SEN. PAT ROBERTS (R), KANSAS: I am reaching out to Democrats. We thought we should plant the flag. I do regret that the timing is so short that we could not gather everybody in, but we didn't have time for that. So we had to set a marker; we did set a marker for what I consider to be real reform.

You don't want to get into a situation where the Democrats on one side just say, "We're going to introduce a bill and it's the 41 recommendations of the 9/11 Commission." That's not a bill. That's not even a plan. All that is, is a list.

And on the other side, you have the administration saying, "Well, OK, we're just going to do something on an executive basis." That isn't it either.

Now, we can argue about that all the way into a lame duck session of Congress, or you can have a window of opportunity to try for real reform. That's what we tried to do.

If people don't like it, if people have suggestions, quit hollering about it, come to me with suggestions and improvements.

KAGAN: And when you look eye to eye with those families of the victims and you are honest with them about what change will take place with these agencies, with Congress, what do you tell them?

ROBERTS: I tell them that we are for real reform for national security so that something like 9/11 will be less likely to happen in the future. And you look them in the eye, and you shoot straight with them, and I think that's what they appreciate.

(END VIDEOTAPE)

KAGAN: Critics say the CIA shouldn't be dismantled while the nation is at war. Senator Roberts said no one would change a desk at the CIA, but it would be realigned under a different authority.

COOPER: In Scott Peterson's double-murder trial, the defense began cross-examining his ex-mistress Amber Frey yesterday. They're going to continue that today.

Joining us this morning, a man who's been in the courtroom during the proceedings, Dean Johnson, a former prosecutor with San Mateo County.

Dean, thanks for being with us so early in the morning.

DEAN JOHNSON, FMR. SAN MATEO CO. PROSECUTOR: Thanks. Good morning.

COOPER: A local reporter said this of Mark Geragos, quote, "that he kept his usual bulldog style at bay, but he still pushed Amber Frey hard." Do you agree with that?

JOHNSON: Well, I think that's correct. He definitely handled Amber Frey with kid gloves from the standpoint of his tone. He was very conversational, very much a gentleman with Amber Frey, but he is setting up some points for cross-examination. I think we may see the fruition of those points today.

COOPER: One of those points is he kept sort of talking about the alcohol that they drank on these dates. I guess the idea being that their dates were sort of nothing more than just sex and drinking, that it wasn't an important relationship. Is that what he's trying to set up?

JOHNSON: Well, yes. He said in his opening statement that the affair with Amber Frey was nothing more than four dates. He's now trying to characterize those as alcohol-fueled sex romps. It's very clear to this jury that that's not the case, however. Scott Peterson very quickly wormed his way into the hearts of both Amber Frey and Amber Frey's daughter. By the second date, he had a key to her apartment. He was picking up the daughter at school. This was much more than sex.

COOPER: You described it yesterday as sort of two boxers, almost feeling each other out. Do you think it's going to be more aggressive today?

JOHNSON: I think it could be more aggressive. At the end of the cross-examination yesterday afternoon, Mark Geragos was starting to talk about wiretaps. And a wiretap is different from a recorded phone call where one party is recording. Amber Frey didn't know at the time that the police were also tapping the phone calls. Mark Geragos may suggest that there are phone calls between Amber and Scott, that Amber did not know about. He may use those in some way, or may just use the fact of those phone calls to suggest that Amber is either lying about how many calls she had, was obsessed, and to point out to the jury possibly that with the Modesto police at that time, Amber was a suspect.

COOPER: Well, he's also going to be looking into sort of the relationship between Amber Frey and the Modesto police, I guess getting at the notion that the Modesto police sort of made this rush to judgment. Yesterday, he sort of focused on some relationship, or working relationship, between Amber Frey and a Modesto police officer? JOHNSON: Well, what was actually focused on yesterday was the relationship between Amber Frey and a friend of hers who is a Fresno police officer. That officer, Officer Bird, and his roommate, Detective Perez, apparently were suspicious of Scott Peterson even before Laci went missing. And I think the suggestion is going to be that those two officers, one of whom is a friend with investigating officer Brocchini, may have contributed to the rush to judgment once Laci disappeared.

COOPER: It will be interesting to see if we hear more about that today.

Dean Johnson, thanks for joining us.

JOHNSON: Thank you.

COOPER: Daryn?

KAGAN: Let's check in on the Olympics. An amazing three-peat at the Olympic Games as Americans grabbed gold, silver and bronze medals in the men's 400-meter race. With a home stretch surge, 20-year-old Jeremy Wariner won gold with a time of just 44 seconds. Teammates Otis Harris and Derrick Brew finished just behind Wariner. It's the first time since Seoul in 1988 that three Americans finished one, two, three.

The U.S. women's softball team won its third consecutive gold medal, defeating Australia three to one. That one run was the only one that the Americans gave up during their entire time in Athens.

More controversy in men's gymnastics. This time over the scoring during the men's high-bar finals. Russia's 12-time Olympic medalist, Alexei Nimov, failed to medal, even after judging officials decided to rescore his performance amid boos and heckling by audience members who insisted the original score was too low.

In the end, American Paul Hamm took the silver behind Italy's Igor Cassina. Paul Hamm has been at the center of controversy for days now. It started last week when he won gold in the men's individual all-around, narrowly edging out a South Korean gymnast who ended up with the bronze. But had it not been for a scoring error at the middle of competition, Yang Tae-Young might have won the gold.

Are Hamm's medals now tainted by the judges' errors? Joining me now, Peter Kormann, the former men's U.S. Olympic gymnast coach, gymnastics coach, also a bronze medalist himself.

Coach, good morning.

PETER KORMANN, FMR. U.S. MEN'S GYMNASTICS COACH: Good morning.

KAGAN: You know what it feels like to be up on the winner's stand yourself.

KORMANN: I do. I still remember.

COOPER: Can you explain the scoring briefly for us? How can an accident like this happen in the middle of a competition?

KORMANN: Well, gymnastics is very technical, and It actually happens more than you might think. The start values are figured out by the judges. They're posted up on the board. And coaches have every right to question them. The only problem is, it has to be questioned right away. So if there's a scoring change, it happens instantaneously. In this case, it didn't happen instantaneously, and that is the controversy.

KAGAN: So, the Koreans didn't do it quickly enough?

KORMANN: That's correct. They have until event is over to turn in a protest. They didn't do there's until the day after. And what would have happened, had that score been changed, the whole outcome of the competition could have been different. Paul Hamm would have known what he needed to win. He may very well, I believe, would have gotten it.

And Yang would have also looked up on the leaderboard, seen himself in first place with high bar left. That can make someone do really good or really bad. So, we'll never know what would have happened there.

KAGAN: So, it's not so simple to say let's just go back, re-add up the scores, and switch out the medals?

KORMANN: That's right. It's no different than saying, yes, that was a three-point shot in basketball, so we'll just give another point to you and assume the rest of the game would have been played the same. It wouldn't have been played the same.

And so, I don't think it's right just to say, well, he would have won. I don't believe that to be true for a second.

KAGAN: And so, you're not supporting the idea of giving double gold medals?

KORMANN: I don't think so. I don't think that solves anything. I mean, Olympic gold medals are very cherished. And Paul Hamm himself has Olympic integrity. And I think you see it in everything he does.

He did it again last night on the high bar finals. And I think he believes he won. Most of us in gymnastics believe he won. And I don't think it'd be right to just give a gold medal to someone else just to make them feel good.

KAGAN: And what would you say to that young South Korean in seeing his hopes dashed?

KORMANN: He did good. He was great. He's an Olympic bronze medalist. He did his job. There was a scoring flap, but that happens. And you move on

KAGAN: Does that happen? I mean, does that happen as often as you're making it sound like it does? KORMANN: It happens. There's mistakes made in every sport. I think they were was wrong in banning the officials from the competition, too. It was an error. It was caught after the competition was over. The scores were posted, and it's time to move on.

But you know, I think the South Koreans did a great job. Paul did a great job. They should all feel personal Olympic pride in that. But giving away gold medals to make someone feel good, I don't think that's...

KAGAN: That's not how you see how it works. What about the idea of how Paul Hamm is handling all this?

KORMANN: I think he's handling it with Olympic championness to him. I mean, when you watched him last night, no one has more integrity than Paul. He went from 12th place to first with two events in the all-around. I didn't think that was possible. No one's ever seen that in gymnastics.

And then, last night after the flap with Alexei Nemov's score and the crowd...

KAGAN: And all the booing?

KORMANN: Yes, he just put it out of his mind and did his job. I mean, that really shows his character. And I think, you know, Paul's got those five Olympic rings tattooed on his heart. You can see it when he performs. He deserves everything he's gotten.

I feel a little bad for him that he has to explain himself for doing such an incredible job at this Olympics.

KAGAN: Real quickly, yes or no, will we see either of these two young men in 2008 in Beijing?

KORMANN: I think you'll see them both.

KAGAN: See them both. We'll be watching. Peter Kormann, thank you for stopping by.

KORMANN: Thank you.

KAGAN: Anderson?

COOPER: Well, still to come this morning, a new example of why, if you want to talk to a real human being when you're doing business, it's going to cost you. Andy Serwer is "Minding Your Business."

Plus, at the beginning of the year, David Peck had a big health scare, which meant he had to make some big changes. Six months later, is our "New You" participant still on the path to a happy heart? Dr. Sanjay Gupta gives him a checkup.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: With all the problems for the airlines -- something that Jack was -- some adjustments for some of United's frequent flier customers is ahead. Andy Serwer is here "Minding Your Business."

Hey, so what's going on?

ANDY SERWER, "FORTUNE" MAGAZINE: Hey. Well, we're going to talk about the markets, first of all, Anderson, because we're open for business, and we've got a good one this morning. Up 55 points in the Dow. Easy to see what's going on this morning. The price of oil is falling. It is now under $46 -- $45.80 to be precise. And this is way down from $49 last week.

What's moving? H.J. Heinz, the old pickle company from Pittsburgh, Pennsylvania, reported solid numbers. They're up almost $1 to $37.33. Airlines, though, continue to make big, big headlines.

First of all, let's talk about US Air. This company is in dire straits. Close to the edge. They need to garner $295 million, they say, from their pilots. Broke off talks the other day. And they've now have a September 30th deadline. They went bankrupt in '03. CEO executive saying they would go bankrupt again. And this time, we're really looking at liquidation. I mean, you know, there's only so many times you can go bankrupt before you've just got to shut this thing down.

COOPER: And United States airlines is looking for some way to save money, too.

SERWER: That's right. US Air -- 28,000 employees, by the way.

United Airlines, this is interesting stuff. We talked the other day about Delta charging customers money to talk to an English customer services representative as opposed to someone from India. They decided not to do that idea.

Well, here's United Airlines. They're going to charge you $15 to talk to a human being if you want to get your frequent flier program in order. That's right.

COOPER: What?

SERWER: You either have to do it on the Web site, but if you want to talk to a human being, they'll charge you $15.

COOPER: That's annoying.

SERWER: Fifteen dollars to talk to a human being. I like that trend -- $15 to talk to a person.

KAGAN: Wouldn't you love to be in one of these meetings where someone goes, "I have a great idea?"

SERWER: Right. And you'd say, well, is it $25 or $10? How much does it talk to -- cost to a human? KAGAN: How much does a person cost?

SERWER: It's just bizarre. But these companies are in real trouble.

CAFFERTY: There are neighborhoods in New York you can have human contact for less than that.

SERWER: Yes. That's true.

CAFFERTY: Don't act like you don't know where they are either, Serwer.

SERWER: It's a big city. I followed you there, Jack. That's all I can say. I followed the Cafferty car.

KAGAN: We get Jack for free. Thank you...

CAFFERTY: What a bargain, huh?

Question of the day is: Should Paul Hamm have to give back his gold medal in the men's gymnastics? The judges admitted now that they made a mistake in judging a South Korean. And at the time the mistake was made, he would have been in first place. So, there was a controversy, and what would the Olympics be without a judging controversy.

Janice in Yadkinville, North Carolina, I think has the answer. "A review of the South Korean's routine showed a two-tenths deduction that was not taken. That mistake gave him a medal instead of fourth place. The mistake made for him was more beneficial than the mistake made against him. Therefore, to me, Hamm not only deserves a gold medal, but an apology from those who say he doesn't."

Grace in Trevose, Pennsylvania: "If the overall state of our country wasn't going to hell in a handbasket, maybe I'd care. Most foreigners aren't watching the Olympics anyway. They're having too much fun laughing at the childish antics of the candidates who are competing to run this country."

And Mike in Nashville, Tennessee: "Perhaps they should perform drug tests on the judges."

Thank you for your thoughts.

SERWER: The mistakes do happen. And someone who competed in high school and college athletics, that stuff would happen, the judges would say something, and that would be it, even though they were wrong. And it's just the end of the story. Yes.

COOPER: Still to come this morning, it is time to check in with an old friend. David Peck was one of our "New You" participants. At the beginning of the year, he had a big scare during our series. Want to know how he's doing now. Dr. Sanjay Gupta has that.

Stay with us on AMERICAN MORNING. (COMMERCIAL BREAK)

COOPER: Well, today is the second day of AMERICAN MORNING's new you six-month checkup. All week long, we were catching up with five viewers who made their "New You" resolutions to feel better and fitter. First, we focus on 44-year-old David peck. He was concerned about a family history of heart disease.

KAGAN: A little bit stressed as well. His story is perhaps the most dramatic of all the participants. During the "New You," he had a serious scare when a stress test for his heart that turned abnormal, meaning their could be blockages. Let's bring in Dr. Sanjay Gupta from CNN Center to bring us an update on David Peck.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, again, Daryn and Anderson.

After that jarring news about his heart, David decided to cut down his stress levels, try to get healthier and eat right so he could be around for his family. That was six months ago. Is David still on the path to wellness? And how is his heart?

(BEGIN VIDEOTAPE)

GUPTA (voice over): We caught up with David Peck in the woods.

DAVE PECK, "NEW YOU" PARTICIPANT: I'm glad we've got our hiking shoes on.

GUPTA: Before "New You," the woods is the last place you'd find him.

PECK: It's just another workout. We started the vacation, and Amy, my wife, says, "Dave, you're here!"

GUPTA: A switch from the stressful life he was leading as a harried businessman always on the go, always on the road.

UNIDENTIFIED FEMALE: Does anybody know what time it is?

PECK: No.

GUPTA: Now, life is decidedly slower-paced. And without the cameras constantly looming, Dave is still on his plan.

PECK: If you lose the cameras you think you're going to drop off. I didn't fall off as much as I thought I would.

GUPTA: He's also seeing his energy level spike as he continues working out. He's lost four more pounds for a total of 14, but not without hitches.

PECK: I had a short weight gain after a Fourth of July eating binge, but other than that, I've been OK.

GUPTA: OK. But Dave's new life is about discipline and realizing that his eating habits can affect his heart and his energy level. Trips to his cardiologist are now routine. And six months later, his heart is still in the clear.

PECK: It was just a good feeling for me to be proactive on that. Just to the say that I have a cardiologist makes me feel good.

GUPTA: For his family, the change in Dave feels good, too. And with his new lower stress schedule, they get to spend time with dad, and time with a husband who used to be absent.

PECK: Before I was a little numb to everything. Now you can kind of take in more things. You know, you stop. Like, with the kids here, we're looking at the stars.

All right, whew!

(END VIDEOTAPE)

GUPTA: I think he really looks terrific. He was a pretty hairy businessman. Listen, we often tend to measure progress in pounds or inches lost. But for David, less stress, more time with his family, that's what's making him feel healthier -- Anderson.

COOPER: So who are we going to check in with tomorrow, Sanjay?

GUPTA: Tomorrow we're checking in with our youngest participant. Her name is Kim Everett, to find out how she's doing, how well she's been on her plan. Is she stalking the treadmill or she stalking apple-tinis? That's something she likes to drink.

Also, be sure to join us all week, talking about all of our participants, and on AMERICAN MORNING for our "New You" six-month checkup, all week long, Anderson.

COOPER: All right, thanks very much.

GUPTA: Thank you.

KAGAN: Sanjay, thank you. You can log on to cnn.com/americanmorning for more on the "New You" six-month checkup.

COOPER: And coming up on CNN, an update on the fighting in Najaf. Yet another ultimatum has been issues, but the fighting is intensifying.

CNN's Matthew Chance is there in Najaf. He'll talk next hour with Betty Nguyen on "CNN LIVE TODAY."

And AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK)

COOPER: That's about it for us here on AMERICAN MORNING.

KAGAN: Thank goodness.

COOPER: Yes, just in time.

KAGAN: Yes, you're back at 7:00 p.m. for your show.

COOPER: 7:00 p.m., absolutely.

ANDY SERWER, "FORTUNE" MAGAZINE: Double duty.

KAGAN: Heading on an airplane back to Atlanta.

JACK CAFFERTY, CNN ANCHOR: So guys won't be here tomorrow?

SERWER: What are we going to do, Jack?

CAFFERTY: I'm not coming in either.

SERWER: What are we going to do, Jack? What are we going to do?

KAGAN: The fun is over.

But the news continues. Betty Nguyen is at CNN Center to take you through the next few hours on CNN LIVE TODAY.

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 August 24, 2004 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDERSON COOPER, CNN ANCHOR: And welcome back. It is just about half past the hour on this AMERICAN MORNING. I'm Anderson Cooper, in for Bill Hemmer.
DARYN KAGAN, CNN ANCHOR: And I'm Daryn Kagan, in for Soledad.

Some of the stories we have this half-hour, a proposal to overhaul the CIA is meeting sudden and strong resistance in Washington. Senator Pat Roberts says that he is open to suggestions, but the window for reform, he says, is short. My conversation with the senator coming up in just a few minutes.

COOPER: Also this morning, one of the biggest triumphs for the U.S., the Summer Games, now turning into the biggest controversy. In a few minutes, we'll talk to a former U.S. gymnastics coach about how judges could have botched the scoring when they awarded Paul Hamm the all-around gold medal. We'll also talk about, if anything, should be done to fix the problem.

KAGAN: Meanwhile, let's check in with Carol Costello. She's at CNN Center with what is happening now in the news.

Carol, good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning, Daryn.

Let me tell you, a small earthquake rattled Olympic venues in and around the Greek capital this morning. The Athens Geodynamic Institute says the tremor had a preliminary magnitude of 4.5. No injuries or damage reported.

Within the half hour, a House committee will meet on Capitol Hill to look at the 9/11 Commission's recommendations for U.S. diplomacy. 9/11 Commission vice chair Lee Hamilton is expected to testify before the International Relations Panel. The House Government Reform panel also set to meet at 10:00 a.m. Eastern.

A military commission in Guantanamo Bay, Cuba begins the prehearing for suspects designated U.S. enemy combatants. This image just of Salim Ahmed Hamdan Just in to CNN within the last half hour. Hamdan is accused of being one of Osama bin Laden's bodyguards. Three other men will be arraigned this week, including Australian David Hicks. His charges include conspiracy to commit war crimes.

New York City's finest and bravest are often known as rivals, but now the police and fire departments have joined forces to take on Mayor Michael Bloomberg. The groups have been working without contracts for more than two years. Police union leaders are expected in court later today, requesting an arbitrator to step in.

Back to Daryn.

KAGAN: Carol, thank you.

A planned overhaul to America's intelligence services has drawn fire from the CIA and some members of Congress. Senator Pat Roberts chairs the Intelligence Committee. He proposes combining the CIA and Defense Department's spy agencies under one new intelligence director. Democrats on his committee have complained they weren't included in the drafting of the proposal. I spoke with Senator Roberts earlier this morning.

(BEGIN VIDEOTAPE)

SEN. PAT ROBERTS (R), KANSAS: I am reaching out to Democrats. We thought we should plant the flag. I do regret that the timing is so short that we could not gather everybody in, but we didn't have time for that. So we had to set a marker; we did set a marker for what I consider to be real reform.

You don't want to get into a situation where the Democrats on one side just say, "We're going to introduce a bill and it's the 41 recommendations of the 9/11 Commission." That's not a bill. That's not even a plan. All that is, is a list.

And on the other side, you have the administration saying, "Well, OK, we're just going to do something on an executive basis." That isn't it either.

Now, we can argue about that all the way into a lame duck session of Congress, or you can have a window of opportunity to try for real reform. That's what we tried to do.

If people don't like it, if people have suggestions, quit hollering about it, come to me with suggestions and improvements.

KAGAN: And when you look eye to eye with those families of the victims and you are honest with them about what change will take place with these agencies, with Congress, what do you tell them?

ROBERTS: I tell them that we are for real reform for national security so that something like 9/11 will be less likely to happen in the future. And you look them in the eye, and you shoot straight with them, and I think that's what they appreciate.

(END VIDEOTAPE)

KAGAN: Critics say the CIA shouldn't be dismantled while the nation is at war. Senator Roberts said no one would change a desk at the CIA, but it would be realigned under a different authority.

COOPER: In Scott Peterson's double-murder trial, the defense began cross-examining his ex-mistress Amber Frey yesterday. They're going to continue that today.

Joining us this morning, a man who's been in the courtroom during the proceedings, Dean Johnson, a former prosecutor with San Mateo County.

Dean, thanks for being with us so early in the morning.

DEAN JOHNSON, FMR. SAN MATEO CO. PROSECUTOR: Thanks. Good morning.

COOPER: A local reporter said this of Mark Geragos, quote, "that he kept his usual bulldog style at bay, but he still pushed Amber Frey hard." Do you agree with that?

JOHNSON: Well, I think that's correct. He definitely handled Amber Frey with kid gloves from the standpoint of his tone. He was very conversational, very much a gentleman with Amber Frey, but he is setting up some points for cross-examination. I think we may see the fruition of those points today.

COOPER: One of those points is he kept sort of talking about the alcohol that they drank on these dates. I guess the idea being that their dates were sort of nothing more than just sex and drinking, that it wasn't an important relationship. Is that what he's trying to set up?

JOHNSON: Well, yes. He said in his opening statement that the affair with Amber Frey was nothing more than four dates. He's now trying to characterize those as alcohol-fueled sex romps. It's very clear to this jury that that's not the case, however. Scott Peterson very quickly wormed his way into the hearts of both Amber Frey and Amber Frey's daughter. By the second date, he had a key to her apartment. He was picking up the daughter at school. This was much more than sex.

COOPER: You described it yesterday as sort of two boxers, almost feeling each other out. Do you think it's going to be more aggressive today?

JOHNSON: I think it could be more aggressive. At the end of the cross-examination yesterday afternoon, Mark Geragos was starting to talk about wiretaps. And a wiretap is different from a recorded phone call where one party is recording. Amber Frey didn't know at the time that the police were also tapping the phone calls. Mark Geragos may suggest that there are phone calls between Amber and Scott, that Amber did not know about. He may use those in some way, or may just use the fact of those phone calls to suggest that Amber is either lying about how many calls she had, was obsessed, and to point out to the jury possibly that with the Modesto police at that time, Amber was a suspect.

COOPER: Well, he's also going to be looking into sort of the relationship between Amber Frey and the Modesto police, I guess getting at the notion that the Modesto police sort of made this rush to judgment. Yesterday, he sort of focused on some relationship, or working relationship, between Amber Frey and a Modesto police officer? JOHNSON: Well, what was actually focused on yesterday was the relationship between Amber Frey and a friend of hers who is a Fresno police officer. That officer, Officer Bird, and his roommate, Detective Perez, apparently were suspicious of Scott Peterson even before Laci went missing. And I think the suggestion is going to be that those two officers, one of whom is a friend with investigating officer Brocchini, may have contributed to the rush to judgment once Laci disappeared.

COOPER: It will be interesting to see if we hear more about that today.

Dean Johnson, thanks for joining us.

JOHNSON: Thank you.

COOPER: Daryn?

KAGAN: Let's check in on the Olympics. An amazing three-peat at the Olympic Games as Americans grabbed gold, silver and bronze medals in the men's 400-meter race. With a home stretch surge, 20-year-old Jeremy Wariner won gold with a time of just 44 seconds. Teammates Otis Harris and Derrick Brew finished just behind Wariner. It's the first time since Seoul in 1988 that three Americans finished one, two, three.

The U.S. women's softball team won its third consecutive gold medal, defeating Australia three to one. That one run was the only one that the Americans gave up during their entire time in Athens.

More controversy in men's gymnastics. This time over the scoring during the men's high-bar finals. Russia's 12-time Olympic medalist, Alexei Nimov, failed to medal, even after judging officials decided to rescore his performance amid boos and heckling by audience members who insisted the original score was too low.

In the end, American Paul Hamm took the silver behind Italy's Igor Cassina. Paul Hamm has been at the center of controversy for days now. It started last week when he won gold in the men's individual all-around, narrowly edging out a South Korean gymnast who ended up with the bronze. But had it not been for a scoring error at the middle of competition, Yang Tae-Young might have won the gold.

Are Hamm's medals now tainted by the judges' errors? Joining me now, Peter Kormann, the former men's U.S. Olympic gymnast coach, gymnastics coach, also a bronze medalist himself.

Coach, good morning.

PETER KORMANN, FMR. U.S. MEN'S GYMNASTICS COACH: Good morning.

KAGAN: You know what it feels like to be up on the winner's stand yourself.

KORMANN: I do. I still remember.

COOPER: Can you explain the scoring briefly for us? How can an accident like this happen in the middle of a competition?

KORMANN: Well, gymnastics is very technical, and It actually happens more than you might think. The start values are figured out by the judges. They're posted up on the board. And coaches have every right to question them. The only problem is, it has to be questioned right away. So if there's a scoring change, it happens instantaneously. In this case, it didn't happen instantaneously, and that is the controversy.

KAGAN: So, the Koreans didn't do it quickly enough?

KORMANN: That's correct. They have until event is over to turn in a protest. They didn't do there's until the day after. And what would have happened, had that score been changed, the whole outcome of the competition could have been different. Paul Hamm would have known what he needed to win. He may very well, I believe, would have gotten it.

And Yang would have also looked up on the leaderboard, seen himself in first place with high bar left. That can make someone do really good or really bad. So, we'll never know what would have happened there.

KAGAN: So, it's not so simple to say let's just go back, re-add up the scores, and switch out the medals?

KORMANN: That's right. It's no different than saying, yes, that was a three-point shot in basketball, so we'll just give another point to you and assume the rest of the game would have been played the same. It wouldn't have been played the same.

And so, I don't think it's right just to say, well, he would have won. I don't believe that to be true for a second.

KAGAN: And so, you're not supporting the idea of giving double gold medals?

KORMANN: I don't think so. I don't think that solves anything. I mean, Olympic gold medals are very cherished. And Paul Hamm himself has Olympic integrity. And I think you see it in everything he does.

He did it again last night on the high bar finals. And I think he believes he won. Most of us in gymnastics believe he won. And I don't think it'd be right to just give a gold medal to someone else just to make them feel good.

KAGAN: And what would you say to that young South Korean in seeing his hopes dashed?

KORMANN: He did good. He was great. He's an Olympic bronze medalist. He did his job. There was a scoring flap, but that happens. And you move on

KAGAN: Does that happen? I mean, does that happen as often as you're making it sound like it does? KORMANN: It happens. There's mistakes made in every sport. I think they were was wrong in banning the officials from the competition, too. It was an error. It was caught after the competition was over. The scores were posted, and it's time to move on.

But you know, I think the South Koreans did a great job. Paul did a great job. They should all feel personal Olympic pride in that. But giving away gold medals to make someone feel good, I don't think that's...

KAGAN: That's not how you see how it works. What about the idea of how Paul Hamm is handling all this?

KORMANN: I think he's handling it with Olympic championness to him. I mean, when you watched him last night, no one has more integrity than Paul. He went from 12th place to first with two events in the all-around. I didn't think that was possible. No one's ever seen that in gymnastics.

And then, last night after the flap with Alexei Nemov's score and the crowd...

KAGAN: And all the booing?

KORMANN: Yes, he just put it out of his mind and did his job. I mean, that really shows his character. And I think, you know, Paul's got those five Olympic rings tattooed on his heart. You can see it when he performs. He deserves everything he's gotten.

I feel a little bad for him that he has to explain himself for doing such an incredible job at this Olympics.

KAGAN: Real quickly, yes or no, will we see either of these two young men in 2008 in Beijing?

KORMANN: I think you'll see them both.

KAGAN: See them both. We'll be watching. Peter Kormann, thank you for stopping by.

KORMANN: Thank you.

KAGAN: Anderson?

COOPER: Well, still to come this morning, a new example of why, if you want to talk to a real human being when you're doing business, it's going to cost you. Andy Serwer is "Minding Your Business."

Plus, at the beginning of the year, David Peck had a big health scare, which meant he had to make some big changes. Six months later, is our "New You" participant still on the path to a happy heart? Dr. Sanjay Gupta gives him a checkup.

Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: With all the problems for the airlines -- something that Jack was -- some adjustments for some of United's frequent flier customers is ahead. Andy Serwer is here "Minding Your Business."

Hey, so what's going on?

ANDY SERWER, "FORTUNE" MAGAZINE: Hey. Well, we're going to talk about the markets, first of all, Anderson, because we're open for business, and we've got a good one this morning. Up 55 points in the Dow. Easy to see what's going on this morning. The price of oil is falling. It is now under $46 -- $45.80 to be precise. And this is way down from $49 last week.

What's moving? H.J. Heinz, the old pickle company from Pittsburgh, Pennsylvania, reported solid numbers. They're up almost $1 to $37.33. Airlines, though, continue to make big, big headlines.

First of all, let's talk about US Air. This company is in dire straits. Close to the edge. They need to garner $295 million, they say, from their pilots. Broke off talks the other day. And they've now have a September 30th deadline. They went bankrupt in '03. CEO executive saying they would go bankrupt again. And this time, we're really looking at liquidation. I mean, you know, there's only so many times you can go bankrupt before you've just got to shut this thing down.

COOPER: And United States airlines is looking for some way to save money, too.

SERWER: That's right. US Air -- 28,000 employees, by the way.

United Airlines, this is interesting stuff. We talked the other day about Delta charging customers money to talk to an English customer services representative as opposed to someone from India. They decided not to do that idea.

Well, here's United Airlines. They're going to charge you $15 to talk to a human being if you want to get your frequent flier program in order. That's right.

COOPER: What?

SERWER: You either have to do it on the Web site, but if you want to talk to a human being, they'll charge you $15.

COOPER: That's annoying.

SERWER: Fifteen dollars to talk to a human being. I like that trend -- $15 to talk to a person.

KAGAN: Wouldn't you love to be in one of these meetings where someone goes, "I have a great idea?"

SERWER: Right. And you'd say, well, is it $25 or $10? How much does it talk to -- cost to a human? KAGAN: How much does a person cost?

SERWER: It's just bizarre. But these companies are in real trouble.

CAFFERTY: There are neighborhoods in New York you can have human contact for less than that.

SERWER: Yes. That's true.

CAFFERTY: Don't act like you don't know where they are either, Serwer.

SERWER: It's a big city. I followed you there, Jack. That's all I can say. I followed the Cafferty car.

KAGAN: We get Jack for free. Thank you...

CAFFERTY: What a bargain, huh?

Question of the day is: Should Paul Hamm have to give back his gold medal in the men's gymnastics? The judges admitted now that they made a mistake in judging a South Korean. And at the time the mistake was made, he would have been in first place. So, there was a controversy, and what would the Olympics be without a judging controversy.

Janice in Yadkinville, North Carolina, I think has the answer. "A review of the South Korean's routine showed a two-tenths deduction that was not taken. That mistake gave him a medal instead of fourth place. The mistake made for him was more beneficial than the mistake made against him. Therefore, to me, Hamm not only deserves a gold medal, but an apology from those who say he doesn't."

Grace in Trevose, Pennsylvania: "If the overall state of our country wasn't going to hell in a handbasket, maybe I'd care. Most foreigners aren't watching the Olympics anyway. They're having too much fun laughing at the childish antics of the candidates who are competing to run this country."

And Mike in Nashville, Tennessee: "Perhaps they should perform drug tests on the judges."

Thank you for your thoughts.

SERWER: The mistakes do happen. And someone who competed in high school and college athletics, that stuff would happen, the judges would say something, and that would be it, even though they were wrong. And it's just the end of the story. Yes.

COOPER: Still to come this morning, it is time to check in with an old friend. David Peck was one of our "New You" participants. At the beginning of the year, he had a big scare during our series. Want to know how he's doing now. Dr. Sanjay Gupta has that.

Stay with us on AMERICAN MORNING. (COMMERCIAL BREAK)

COOPER: Well, today is the second day of AMERICAN MORNING's new you six-month checkup. All week long, we were catching up with five viewers who made their "New You" resolutions to feel better and fitter. First, we focus on 44-year-old David peck. He was concerned about a family history of heart disease.

KAGAN: A little bit stressed as well. His story is perhaps the most dramatic of all the participants. During the "New You," he had a serious scare when a stress test for his heart that turned abnormal, meaning their could be blockages. Let's bring in Dr. Sanjay Gupta from CNN Center to bring us an update on David Peck.

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, again, Daryn and Anderson.

After that jarring news about his heart, David decided to cut down his stress levels, try to get healthier and eat right so he could be around for his family. That was six months ago. Is David still on the path to wellness? And how is his heart?

(BEGIN VIDEOTAPE)

GUPTA (voice over): We caught up with David Peck in the woods.

DAVE PECK, "NEW YOU" PARTICIPANT: I'm glad we've got our hiking shoes on.

GUPTA: Before "New You," the woods is the last place you'd find him.

PECK: It's just another workout. We started the vacation, and Amy, my wife, says, "Dave, you're here!"

GUPTA: A switch from the stressful life he was leading as a harried businessman always on the go, always on the road.

UNIDENTIFIED FEMALE: Does anybody know what time it is?

PECK: No.

GUPTA: Now, life is decidedly slower-paced. And without the cameras constantly looming, Dave is still on his plan.

PECK: If you lose the cameras you think you're going to drop off. I didn't fall off as much as I thought I would.

GUPTA: He's also seeing his energy level spike as he continues working out. He's lost four more pounds for a total of 14, but not without hitches.

PECK: I had a short weight gain after a Fourth of July eating binge, but other than that, I've been OK.

GUPTA: OK. But Dave's new life is about discipline and realizing that his eating habits can affect his heart and his energy level. Trips to his cardiologist are now routine. And six months later, his heart is still in the clear.

PECK: It was just a good feeling for me to be proactive on that. Just to the say that I have a cardiologist makes me feel good.

GUPTA: For his family, the change in Dave feels good, too. And with his new lower stress schedule, they get to spend time with dad, and time with a husband who used to be absent.

PECK: Before I was a little numb to everything. Now you can kind of take in more things. You know, you stop. Like, with the kids here, we're looking at the stars.

All right, whew!

(END VIDEOTAPE)

GUPTA: I think he really looks terrific. He was a pretty hairy businessman. Listen, we often tend to measure progress in pounds or inches lost. But for David, less stress, more time with his family, that's what's making him feel healthier -- Anderson.

COOPER: So who are we going to check in with tomorrow, Sanjay?

GUPTA: Tomorrow we're checking in with our youngest participant. Her name is Kim Everett, to find out how she's doing, how well she's been on her plan. Is she stalking the treadmill or she stalking apple-tinis? That's something she likes to drink.

Also, be sure to join us all week, talking about all of our participants, and on AMERICAN MORNING for our "New You" six-month checkup, all week long, Anderson.

COOPER: All right, thanks very much.

GUPTA: Thank you.

KAGAN: Sanjay, thank you. You can log on to cnn.com/americanmorning for more on the "New You" six-month checkup.

COOPER: And coming up on CNN, an update on the fighting in Najaf. Yet another ultimatum has been issues, but the fighting is intensifying.

CNN's Matthew Chance is there in Najaf. He'll talk next hour with Betty Nguyen on "CNN LIVE TODAY."

And AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK)

COOPER: That's about it for us here on AMERICAN MORNING.

KAGAN: Thank goodness.

COOPER: Yes, just in time.

KAGAN: Yes, you're back at 7:00 p.m. for your show.

COOPER: 7:00 p.m., absolutely.

ANDY SERWER, "FORTUNE" MAGAZINE: Double duty.

KAGAN: Heading on an airplane back to Atlanta.

JACK CAFFERTY, CNN ANCHOR: So guys won't be here tomorrow?

SERWER: What are we going to do, Jack?

CAFFERTY: I'm not coming in either.

SERWER: What are we going to do, Jack? What are we going to do?

KAGAN: The fun is over.

But the news continues. Betty Nguyen is at CNN Center to take you through the next few hours on CNN LIVE TODAY.

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