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Man at Heart of 9/11 Response is President Bush's Choice to Lead Department of Homeland Security; Leaked Grand Jury Testimony Reveals Strong Possibility of Illegal Steroid Use by Some of Biggest Stars in Sports

Aired December 03, 2004 - 11:00   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.


DARYN KAGAN, CNN ANCHOR: To Baghdad, simultaneous insurgency attacks killed at least 29 people today. Among them, 11 Iraqi police officers who died in a strike on their station. In another attack, four suicide bombers drove into a Shiite mosque, killing at least worshipers there.
The nation's jobless rate dipped a tenth of a point in November to 5.4 percent. That's according to the November job figures released this morning by the Labor Department. Employers added 112,000 people to their payrolls last month. Economists had been forecasting a more robust increase of 200,000 jobs. A closer look at how the numbers are impacting Wall Street is ahead in our business update.

And in Redwood City, California, Scott Peterson's attorneys will call more witnesses today, trying to persuade jurors to spare him the death penalty. The normally stoic Peterson broke down in tears yesterday as his sister-in-law testified about how much he is loved by his family.

We are just a minute past 11:00 a.m. on the East Coast and just past 8:00 for those of you on the west. From CNN Center in Atlanta, good morning once again, I'm Daryn Kagan.

RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez.

And let us go ahead and start this hour in Washington. A man at the heart of the 9/11 response is President Bush's choice this morning to lead the Department of Homeland Security. Bernard Kerik served as New York City police commissioner when he was called Bernie Kerik during the dark days following the 9/11 attack. CNN's Elaine Quijano is live today at the White House with some sirens in the background to bring us up to date on the president's choice. Elaine?

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you. That's right, Rick, apologies for the sirens. But President Bush this morning called Bernard Kerik an accomplished and effective leader, someone that President Bush says is superbly qualified for this position. Now, during the official announcement, a short time ago in the Roosevelt Room of the White House, Mr. Bush noted that Kerik was on the scene at the World Trade Center on September 11th and that the resolve Kerik felt that morning will guide him every day. The president also noted that Kerik has served in the army, also has, of course, long-time experience as a law enforcement officer and even a jail warden. GEORGE W. BUSH, U.S. PRESIDENT (VIDEO CLIP): In every position he's demonstrated a deep commitment to justice, a heart for the innocent and a record of great success. I'm grateful he's agreed to bring his lifetime of security experience and skill to one of the most important positions in the federal government.

QUIJANO: And the announcement of Kerik as the president's choice is getting praise. Just a short time ago, Senator Ted Kennedy had high praise for Kerik. Let's take a listen at what he said.

SEN. EDWARD KERRY, (D) MA: I had the opportunity to hear from Senator Schumer and Senator Clinton who know him, are familiar with his leadership qualities. They're enormously impressed with those issues and I'll look forward to the hearings, but my sense now is that he ought to go through very quickly. This is an incredibly important job and task and I'll look forward to the hearings.

QUIJANO: And that was Senator Kennedy who was here at the White House for the signing of the Disabilities Education Improvement Act. Now, as for Bernard Kerik, this is not the first time that the White House has asked him to serve. It was last year that he traveled to Iraq at President Bush's request in order to help start rebuilding the Iraqi national police force there. But you heard already some positive comments coming from lawmakers, from Democrats, that confirmation process, though, obviously still yet to get underway. Daryn, Rick?

SANCHEZ: Elaine Quijano following that story for us. We certainly thank you. Maybe we'll get back to you. Daryn, over to you now.

KAGAN: A lot of news happening in Southern California. First this breaking story we are following out of Los Angeles. This is Fremont High School in LA. These pictures coming us to live from KTLA. The entire high school has been evacuated. A suspicious package, which we believe to be that blue item you just saw there, found outside the girls' gymnasium earlier today. Since they don't know what it is they've cleared the kids out of the school. That's all the information we have at this time. We'll continue to follow that one out of Fremont High School in Los Angeles, where a suspicious package has forced the entire school to be evacuated.

Farther south from there, a settlement announced between the Roman Catholic Diocese of Orange in Southern California and 87 victims of sexual abuse by people associated with the church. Settlement sources tell CNN that it will be the largest payout in the history of the Catholic Church abuse scandal.

(BEGIN VIDEO CLIP)

BISHOP TOD BROWN, DIOCESE OF ORANGE: I intend to write a letter to each victim, personally, seeking forgiveness and reconciliation. Let me also take this opportunity to, once again, extend on behalf of the Diocese of Orange and myself, a sincere apology, a request for forgiveness, a heartfelt hope for reconciliation and healing.

(END VIDEO CLIP)

KAGAN: After Orange County Bishop Tod Brown announced the settlement, victims, people molested by 43 Catholic priests, nuns, teachers, even a choir director, hugged and thanked the bishop for acknowledging their pain.

(BEGIN VIDEO CLIP)

DAVID GUERRERO, ABUSE VICTIM: For once, them coming in tonight and settling these cases and apologizing and for Bishop Brown saying that he's going to hand write a letter of apology to each and every victim, I mean I couldn't stop crying.

(END VIDEO CLIP)

KAGAN: Precise details of the settlement will not be released until all the parties sign off on the deal. That's expected within a week. Sources telling CNN the agreement exceeds the $85 million settlement against the Archdiocese of Boston in a similar case.

SANCHEZ: SNAP. S.N.A.P. is a survivor's network for church abuse victims. Barbara Blaine is the founder and president of this organization, which obviously lets you know that she has personal experiences with this issue. She joins us from Chicago, although she was certainly not a victim in this particular case, she has been in others, Ohio, I believe, correct, Barbara?

BARBARA BLAINE, SNAP PRESIDENT: Yes, that's correct.

SANCHEZ: What's your reaction to this settlement?

BLAINE: Well, I think we have to recognize that it's the courageous victims who had the wisdom to come forward and bring their claim to the American judicial system that has brought about this moment. And I think that it's good for those victims to have some measure of closure, that they can move on. Although I think it's important to recognize that no amount of money can restore the lost innocence that was taken from these individuals.

SANCHEZ: So it's obviously not about the money. What about what this bishop has done, one of the few who essentially has reached out to the victims personally. In fact, there's the video we have of him meeting with them. I suppose this was last night and embracing them and talking to them. How important is that?

BLAINE: Well, it's been a very long road for these victims. They've been fighting this in the courts for two years now. And I think that that's the least the bishop could do and it's sad to me that it takes the victims going through the judicial system to bring this about. All the bishops should be acting like this and reaching out to the victims. And I think it's important, also to recognize that the decision of the diocese to settle these cases is a business decision. It's in their best interest.

SANCHEZ: That's interesting. Because I'm Catholic as well. And if there's something that I think that has probably either bothered or intrigued all of us is that oftentimes we felt this was being treated like a business and maybe the emphasis wasn't on healing or helping the people that have been abused, more like public relations, perhaps. Do you have the same feeling?

BLAINE: Yes, exactly. And even worse, many of us as victims have been treated as though we are the enemy. So we are certainly glad to come to this point and -- but we believe that the credit goes to those courageous victims who had the courage and the wisdom to come forward and to fight it.

SANCHEZ: And hopefully obviously ...

BLAINE: And the bishop is doing what should be done.

SANCHEZ: And hopefully it marks a change, not only in this case, but as we go on. Barbara Blaine, we thank you for sharing some of your experiences with us and your insight on this settlement as well.

BLAINE: Thank you.

SANCHEZ: Daryn?

KAGAN: "The San Francisco Chronicle" reports that leaked grand jury testimony reveals a strong possibility of illegal steroid use by some of the biggest stars in sports. According to the newspaper, Giants slugger Barry Bonds told a grand jury last year he used cream and a clear substance provided by his trainer that he says he did not think were steroids. The paper said Yankees hitter Jason Giambi testified to using steroids for at least three sessions. Ray D'Alessio of CNN Sports is here, not much of the details, to talk about the impact and what this means for sports ahead. First of all, Barry Bonds?

RAY D'ALESSIO, CNN SPORTS: As far as Barry Bonds is concerned, we did put -- what could happen to his records or what should happen to his records. We put calls into the Major League Baseball Hall of Fame, no response back yet. We called the Players' Association, still no response from them. So the biggest thing, Daryn, is going to be how the public will perceive Barry Bonds. Now they have that proof that Barry did indeed do steroids. Although he says he didn't know he was taking steroids, thought it was a just regular cream like a balm for arthritis and stuff like that.

KAGAN: But he didn't even ask.

D'ALESSIO: Because he trusted his trainer.

KAGAN: We could go on all day about that. Why don't you ask? But not just the records that he has racked up, all these MVP awards, other awards that he has acquired. He is within striking distance of the big mac daddy, 755 career home runs that Hank Aaron currently holds. What do you do with that?

D'ALESSIO: There's nothing can you do about the past. Is there anything saying they can go back, being that there was no penalty at the time, when he was hitting home runs, say, back in 2001 if he was doing steroids then, again, we don't know. The grand jury said they have documentation they have calendars saying he was receiving steroids at this time. It's something Barry Bonds denies that. Whether or not we can do anything about those records is yet to be seen. Again, no work back in the Baseball Hall of Fame. All we can do now is have the baseball players' union get together with Bud Selig and the guys and say, fans are angry, they're angrier than they were before, it's time now to institute a more strict policy. Keep in mind, the first time a player tested positive in major league baseball for steroids, it's only a treatment(PH). That's it.

KAGAN: People think it's a joke right now, the testing program.

D'ALESSIO: That's right.

KAGAN: And even that was a step forward. Bud Selig coming out and saying, hey, we have a great program in the minor leagues, which some people would debate how great that is, but he wants to implement that in the major league. I think a lot of people don't understand, if you're the player's union, if you're trying to represent the interests of the players, why don't you want them working in a situation where a healthy workplace is encouraged.

D'ALESSIO: And it shows them in a good light in the eyes of the fans. Because right now, when they testified last year in front of the government, they were like, well, by testing these players on a routine basis, or what have you, it's an invasion of their privacy. What's more of an invasion of their privacy, the fact that all this is now is coming to light, really making them look bad or the fact that you test these guys and you clear their name.

KAGAN: Other names out there, Marion Jones, the world-class sprinter, did so well in Sydney in 2000. Victor Conte, the guy who is at the head of BALCO, where supposedly these steroids come from, is going to go on national television saying he saw her inject herself with steroids. What about her gold medals? What possibly happens to those?

D'ALESSIO: And, again, you have a situation where you have a he said/she said type of deal. They have no type of documentation as of yet that we know of where Marion Jones was on record taking these steroids. Victor Conte, again, reportedly saying that he instructed Marion Jones on how to take these steroids and actually witnessed her take human growth hormone. It is going to be interesting to hear what he has to say tonight on this. And again, she has gone public, she has said I have never taken steroids, never will take steroids. And again, if they have documentation, her on tape doing a steroid deal then maybe ...

KAGAN: Quickly, bottom line, do you think fans care or do you think fans just throw up their hands and say everybody is cheating so who cares?

D'ALESSIO: Rick and I were talking about this. Personally, I think fans are angry. This is the great -- this is what the players' union needed to get back to the table. Because if you make the fans angry, look what happened during the strike in 1994. They stayed away. Once baseball resumed, they stayed away. And then when the whole home run race came up, Mark McGwire, Sammy Sosa, they went back to the ballparks. Now, this could hit baseball again. Hey, let's make things right, get that steroid testing policy more stringent.

KAGAN: Let's get it clean. Ray D'Alessio.

D'ALESSIO: OK.

KAGAN: Thank you. Could talk to you all day on this one.

SANCHEZ: You talk about baseball fans being angry. There are certainly some people who are angry in the Ukraine. It appears now that some of the questions they have raised have been answered. These are live pictures just moments ago, we heard that the Supreme Court in the Ukraine, which has been out for the better part of a week has made a decision on this case. Jill Dougherty has been following this story. She is joining us now live once again with what that is. Jill Dougherty, to you.

JILL DOUGHERTY, CNN CORRESPONDENT: Well, Rick, it's really a very, very big win for the opposition. The support is that Viktor Yushchenko, who was the opposition candidate who claimed that this election was stolen from him. And now the Supreme Court of Ukraine in that ruling deliberating for about seven hours finally came out, and you could have heard a pin drop throughout Kiev. But when the decision was announced, there were huge cheers. They have invalidated that second round, held on November 21st and said there should be new elections. Now the court doesn't say what kind of elections. We don't know when they will be. These are all questions that will be determined later. But this is a very important moment for the opposition. Viktor Yushchenko getting another chance to get what he claims should have been his all along.

SANCHEZ: Jill, back to us?

DOUGHERTY: Yes. Back to you.

SANCHEZ: Jill, while you're there, let me try and clear this up. Because as I read this situation, Yushchenko says, and that's the one that's favored more by the Europeans and the United States, he says what he wants is just another runoff. He doesn't want to have the whole shoot and caboodle done all over again while Kucha and the Kremlin are saying, no, if you do it, you have to do it all over again. Can you break down why each wants different scenarios and what they would mean?

DOUGHERTY: Absolutely. If Yushchenko gets what he wants they would have elections let's say in a couple of weeks. So there would not be any waiting around and looking at the polls right now, he would win handily if they had the vote soon. Now what President Kucha wants, of course supporting the other candidate, he wants a new round of elections. And if they went to a totally new, start from scratch round that could take three months. And heaven knows what would happen in three months. So the opposition is now saying let's do it and let's do it very soon. SANCHEZ: Interesting. It's like a trial lawyer trying to delay, delay, delay, to see if things could possibly change in his favor in the future. As far as the Kremlin is concerned, we understand that Putin has suddenly made an appearance and had meetings to try and perhaps get his way in this thing. What can you tell us about that?

DOUGHERTY: He did. Well, he had an amazing moment when the president of Ukraine, yesterday, in the midst of all this craziness flies off to Moscow and says, Mr. Putin thank you very much for your help and support, we couldn't be going through this without your help and then President Putin who had said no one should interfere. The Ukrainians should decide everything, in the next breath he jumped in and began to tell them how they ought to run a runoff election. It was really quite striking. But the Russians have been very overt and Mr. Putin himself actually came here and in a not so veiled attempt, twice came here to support the government candidate. So it's not surprising. Rick?

SANCHEZ: Is there any possibility there could be another candidate that could come into the fray? I mean, right now you have Yanukovich and Yushchenko. Will it be those two in this election as we see it now?

DOUGHERTY: You know, Rick, that's another very good question. Because Yanukovich, who is the prime minister, don't forget, he's on a very, really sinking position, because just a couple of days ago, the parliament had a no confidence vote and demanded that the president fire him. So this is a man who's very, very weak right now. And perhaps they'd want to go to another candidate. But that's still not clear. Now we have the negotiations that will go back into the parliament. The two sides will be negotiating. There's a lot of back room discussion here of what kind of elections there should be. But again, the bottom line here, Rick, extremely important, is that the court agrees with the opposition that there had been major violations and said that shouldn't stand and the voters should have another chance to express their will.

SANCHEZ: But we don't know at this point and correct me if I'm wrong, when the election will be held or in what form the election will be held. Those details still have to be worked out?

DOUGHERTY: Correct. And we'll just have to see how they work that out. That's more negotiating, there.

SANCHEZ: Jill Dougherty following that story for us. As you heard right here on CNN ...

DOUGHERTY: Oh.

SANCHEZ: Go ahead, Jill. Go ahead.

DOUGHERTY: I'm sorry. I think we just heard, from Maxine(PH) -- revote within three weeks. OK. That's pretty much what the opposition wanted. They will revote within three weeks. Again, that's ...

SANCHEZ: Revote within three weeks and again ...

DOUGHERTY: Within three weeks.

SANCHEZ: Just to be clear, are we talking about just between these two fellows, these two candidates in a runoff or the entire process beginning from the beginning with possibly more candidates?

DOUGHERTY: No. This would be a repeat of the runoff. Remember, we're talking - It's real complicated. But there was the first vote happened, then the runoff. Neither candidate got 50 percent. So they had to have a runoff. And the runoff is what is in dispute. That's what they said has these massive violations. SO it will be a repeat of the runoff. But, again, we don't know all the details. We'll just have to see what they figure out.

SANCHEZ: We certainly appreciate that. Jill Dougherty all over that story as it happens, right here on CNN. I suppose it is a win, then, for Yushchenko.

KAGAN: I think it's a big win for the opposition.

SANCHEZ: It's what they are saying he wanted, to have a quick election and make sure it was a runoff.

KAGAN: And just fascinating. People watch CNN for breaking news. It's happening even as Jill was giving the report.

SANCHEZ: We were learning it when they were learning it.

KAGAN: That's when it's fun to be here. All right. We have a lot of other news to cover. One of the boldest and bloodies attacks yet by insurgents in Iraq. We are going to take to you the fighting.

SANCHEZ: Later, it's called data mining. And what it's digging up is you. A look at computer privacy or privacy as they say across the Atlantic. It continues with a man that looks at everything about your life for a price. And we're coming to be coming right back on that.

(COMMERCIAL BREAK)

KAGAN: To Iraq now, insurgents staged a wave after tacks across Baghdad today leaving at least 29 people dead. Most of the deaths occurred during Friday prayers at a mosque. Iraqi police say it was attacked by four suicide bombers in a minivan. Insurgents with guns and rocket propelled grenades also stormed a police station on Baghdad's airport road. The ambush killed 11 officers.

SANCHEZ: Rescue crews are scrambling to try and reach thousands of people stranded by flooding and mudslides in the Philippines. Back to back storms including a typhoon hit the northern provinces this week. At least 1,000 people are dead or missing. Close to 200,000 residents have fled their homes during this disaster.

KAGAN: Let's see what kind of weather news is happening here in the U.S. Orelon Sidney getting that for us. Hi, Orelon. (WEATHER REPORT)

KAGAN: We're looking at computer privacy.

SANCHEZ: Privacy.

KAGAN: Privacy. Tomato.

SANCHEZ: It's digging, almost everything about your life can be had or revealed about a computer. Did you know?

KAGAN: Lovely. So happy to know that. You're going to meet the man who will do it and he's not making apologies about it. That's coming up next.

(COMMERCIAL BREAK)

KAGAN: And we have breaking news for you. Off the coast of Puerto Rico, a boat carrying as many as 80 immigrants supposedly has capsized. And a number of rescues taking place. It looks like this will be the result of some successful rescues. This boat originally spotted in the middle of the night and the Coast Guard tried to intervene. At the time, the boat tried to make an illegal entry into Puerto Rico yet again. Apparently they deployed a raft when they saw the boat capsize. Currently they're still trying to hoist immigrants to safety at this time. And it is unclear how many people were on the boat. But once again, rescues taking place off the coast of Puerto Rico.

SANCHEZ: It has been a busy morning. Let's try and get you up to date now on all the stories that have been taking place in the last couple of hours. President Bush nominates former New York Police commissioner Bernie Kerik to head the Homeland Security department. Kerik received widespread praise for helping coordinate his city's response to the 9/11 terror attacks.

Also a Roman Catholic diocese in suburban Los Angeles led by the bishop you see here is settling with abuse victims. Once finalized, sources tell CNN it's going to be the largest payout in the history of the sex abuse scandals, exceeding the $85 million settlement with the Archdiocese of Boston.

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Aired December 3, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: To Baghdad, simultaneous insurgency attacks killed at least 29 people today. Among them, 11 Iraqi police officers who died in a strike on their station. In another attack, four suicide bombers drove into a Shiite mosque, killing at least worshipers there.
The nation's jobless rate dipped a tenth of a point in November to 5.4 percent. That's according to the November job figures released this morning by the Labor Department. Employers added 112,000 people to their payrolls last month. Economists had been forecasting a more robust increase of 200,000 jobs. A closer look at how the numbers are impacting Wall Street is ahead in our business update.

And in Redwood City, California, Scott Peterson's attorneys will call more witnesses today, trying to persuade jurors to spare him the death penalty. The normally stoic Peterson broke down in tears yesterday as his sister-in-law testified about how much he is loved by his family.

We are just a minute past 11:00 a.m. on the East Coast and just past 8:00 for those of you on the west. From CNN Center in Atlanta, good morning once again, I'm Daryn Kagan.

RICK SANCHEZ, CNN ANCHOR: And I'm Rick Sanchez.

And let us go ahead and start this hour in Washington. A man at the heart of the 9/11 response is President Bush's choice this morning to lead the Department of Homeland Security. Bernard Kerik served as New York City police commissioner when he was called Bernie Kerik during the dark days following the 9/11 attack. CNN's Elaine Quijano is live today at the White House with some sirens in the background to bring us up to date on the president's choice. Elaine?

ELAINE QUIJANO, CNN CORRESPONDENT: Good morning to you. That's right, Rick, apologies for the sirens. But President Bush this morning called Bernard Kerik an accomplished and effective leader, someone that President Bush says is superbly qualified for this position. Now, during the official announcement, a short time ago in the Roosevelt Room of the White House, Mr. Bush noted that Kerik was on the scene at the World Trade Center on September 11th and that the resolve Kerik felt that morning will guide him every day. The president also noted that Kerik has served in the army, also has, of course, long-time experience as a law enforcement officer and even a jail warden. GEORGE W. BUSH, U.S. PRESIDENT (VIDEO CLIP): In every position he's demonstrated a deep commitment to justice, a heart for the innocent and a record of great success. I'm grateful he's agreed to bring his lifetime of security experience and skill to one of the most important positions in the federal government.

QUIJANO: And the announcement of Kerik as the president's choice is getting praise. Just a short time ago, Senator Ted Kennedy had high praise for Kerik. Let's take a listen at what he said.

SEN. EDWARD KERRY, (D) MA: I had the opportunity to hear from Senator Schumer and Senator Clinton who know him, are familiar with his leadership qualities. They're enormously impressed with those issues and I'll look forward to the hearings, but my sense now is that he ought to go through very quickly. This is an incredibly important job and task and I'll look forward to the hearings.

QUIJANO: And that was Senator Kennedy who was here at the White House for the signing of the Disabilities Education Improvement Act. Now, as for Bernard Kerik, this is not the first time that the White House has asked him to serve. It was last year that he traveled to Iraq at President Bush's request in order to help start rebuilding the Iraqi national police force there. But you heard already some positive comments coming from lawmakers, from Democrats, that confirmation process, though, obviously still yet to get underway. Daryn, Rick?

SANCHEZ: Elaine Quijano following that story for us. We certainly thank you. Maybe we'll get back to you. Daryn, over to you now.

KAGAN: A lot of news happening in Southern California. First this breaking story we are following out of Los Angeles. This is Fremont High School in LA. These pictures coming us to live from KTLA. The entire high school has been evacuated. A suspicious package, which we believe to be that blue item you just saw there, found outside the girls' gymnasium earlier today. Since they don't know what it is they've cleared the kids out of the school. That's all the information we have at this time. We'll continue to follow that one out of Fremont High School in Los Angeles, where a suspicious package has forced the entire school to be evacuated.

Farther south from there, a settlement announced between the Roman Catholic Diocese of Orange in Southern California and 87 victims of sexual abuse by people associated with the church. Settlement sources tell CNN that it will be the largest payout in the history of the Catholic Church abuse scandal.

(BEGIN VIDEO CLIP)

BISHOP TOD BROWN, DIOCESE OF ORANGE: I intend to write a letter to each victim, personally, seeking forgiveness and reconciliation. Let me also take this opportunity to, once again, extend on behalf of the Diocese of Orange and myself, a sincere apology, a request for forgiveness, a heartfelt hope for reconciliation and healing.

(END VIDEO CLIP)

KAGAN: After Orange County Bishop Tod Brown announced the settlement, victims, people molested by 43 Catholic priests, nuns, teachers, even a choir director, hugged and thanked the bishop for acknowledging their pain.

(BEGIN VIDEO CLIP)

DAVID GUERRERO, ABUSE VICTIM: For once, them coming in tonight and settling these cases and apologizing and for Bishop Brown saying that he's going to hand write a letter of apology to each and every victim, I mean I couldn't stop crying.

(END VIDEO CLIP)

KAGAN: Precise details of the settlement will not be released until all the parties sign off on the deal. That's expected within a week. Sources telling CNN the agreement exceeds the $85 million settlement against the Archdiocese of Boston in a similar case.

SANCHEZ: SNAP. S.N.A.P. is a survivor's network for church abuse victims. Barbara Blaine is the founder and president of this organization, which obviously lets you know that she has personal experiences with this issue. She joins us from Chicago, although she was certainly not a victim in this particular case, she has been in others, Ohio, I believe, correct, Barbara?

BARBARA BLAINE, SNAP PRESIDENT: Yes, that's correct.

SANCHEZ: What's your reaction to this settlement?

BLAINE: Well, I think we have to recognize that it's the courageous victims who had the wisdom to come forward and bring their claim to the American judicial system that has brought about this moment. And I think that it's good for those victims to have some measure of closure, that they can move on. Although I think it's important to recognize that no amount of money can restore the lost innocence that was taken from these individuals.

SANCHEZ: So it's obviously not about the money. What about what this bishop has done, one of the few who essentially has reached out to the victims personally. In fact, there's the video we have of him meeting with them. I suppose this was last night and embracing them and talking to them. How important is that?

BLAINE: Well, it's been a very long road for these victims. They've been fighting this in the courts for two years now. And I think that that's the least the bishop could do and it's sad to me that it takes the victims going through the judicial system to bring this about. All the bishops should be acting like this and reaching out to the victims. And I think it's important, also to recognize that the decision of the diocese to settle these cases is a business decision. It's in their best interest.

SANCHEZ: That's interesting. Because I'm Catholic as well. And if there's something that I think that has probably either bothered or intrigued all of us is that oftentimes we felt this was being treated like a business and maybe the emphasis wasn't on healing or helping the people that have been abused, more like public relations, perhaps. Do you have the same feeling?

BLAINE: Yes, exactly. And even worse, many of us as victims have been treated as though we are the enemy. So we are certainly glad to come to this point and -- but we believe that the credit goes to those courageous victims who had the courage and the wisdom to come forward and to fight it.

SANCHEZ: And hopefully obviously ...

BLAINE: And the bishop is doing what should be done.

SANCHEZ: And hopefully it marks a change, not only in this case, but as we go on. Barbara Blaine, we thank you for sharing some of your experiences with us and your insight on this settlement as well.

BLAINE: Thank you.

SANCHEZ: Daryn?

KAGAN: "The San Francisco Chronicle" reports that leaked grand jury testimony reveals a strong possibility of illegal steroid use by some of the biggest stars in sports. According to the newspaper, Giants slugger Barry Bonds told a grand jury last year he used cream and a clear substance provided by his trainer that he says he did not think were steroids. The paper said Yankees hitter Jason Giambi testified to using steroids for at least three sessions. Ray D'Alessio of CNN Sports is here, not much of the details, to talk about the impact and what this means for sports ahead. First of all, Barry Bonds?

RAY D'ALESSIO, CNN SPORTS: As far as Barry Bonds is concerned, we did put -- what could happen to his records or what should happen to his records. We put calls into the Major League Baseball Hall of Fame, no response back yet. We called the Players' Association, still no response from them. So the biggest thing, Daryn, is going to be how the public will perceive Barry Bonds. Now they have that proof that Barry did indeed do steroids. Although he says he didn't know he was taking steroids, thought it was a just regular cream like a balm for arthritis and stuff like that.

KAGAN: But he didn't even ask.

D'ALESSIO: Because he trusted his trainer.

KAGAN: We could go on all day about that. Why don't you ask? But not just the records that he has racked up, all these MVP awards, other awards that he has acquired. He is within striking distance of the big mac daddy, 755 career home runs that Hank Aaron currently holds. What do you do with that?

D'ALESSIO: There's nothing can you do about the past. Is there anything saying they can go back, being that there was no penalty at the time, when he was hitting home runs, say, back in 2001 if he was doing steroids then, again, we don't know. The grand jury said they have documentation they have calendars saying he was receiving steroids at this time. It's something Barry Bonds denies that. Whether or not we can do anything about those records is yet to be seen. Again, no work back in the Baseball Hall of Fame. All we can do now is have the baseball players' union get together with Bud Selig and the guys and say, fans are angry, they're angrier than they were before, it's time now to institute a more strict policy. Keep in mind, the first time a player tested positive in major league baseball for steroids, it's only a treatment(PH). That's it.

KAGAN: People think it's a joke right now, the testing program.

D'ALESSIO: That's right.

KAGAN: And even that was a step forward. Bud Selig coming out and saying, hey, we have a great program in the minor leagues, which some people would debate how great that is, but he wants to implement that in the major league. I think a lot of people don't understand, if you're the player's union, if you're trying to represent the interests of the players, why don't you want them working in a situation where a healthy workplace is encouraged.

D'ALESSIO: And it shows them in a good light in the eyes of the fans. Because right now, when they testified last year in front of the government, they were like, well, by testing these players on a routine basis, or what have you, it's an invasion of their privacy. What's more of an invasion of their privacy, the fact that all this is now is coming to light, really making them look bad or the fact that you test these guys and you clear their name.

KAGAN: Other names out there, Marion Jones, the world-class sprinter, did so well in Sydney in 2000. Victor Conte, the guy who is at the head of BALCO, where supposedly these steroids come from, is going to go on national television saying he saw her inject herself with steroids. What about her gold medals? What possibly happens to those?

D'ALESSIO: And, again, you have a situation where you have a he said/she said type of deal. They have no type of documentation as of yet that we know of where Marion Jones was on record taking these steroids. Victor Conte, again, reportedly saying that he instructed Marion Jones on how to take these steroids and actually witnessed her take human growth hormone. It is going to be interesting to hear what he has to say tonight on this. And again, she has gone public, she has said I have never taken steroids, never will take steroids. And again, if they have documentation, her on tape doing a steroid deal then maybe ...

KAGAN: Quickly, bottom line, do you think fans care or do you think fans just throw up their hands and say everybody is cheating so who cares?

D'ALESSIO: Rick and I were talking about this. Personally, I think fans are angry. This is the great -- this is what the players' union needed to get back to the table. Because if you make the fans angry, look what happened during the strike in 1994. They stayed away. Once baseball resumed, they stayed away. And then when the whole home run race came up, Mark McGwire, Sammy Sosa, they went back to the ballparks. Now, this could hit baseball again. Hey, let's make things right, get that steroid testing policy more stringent.

KAGAN: Let's get it clean. Ray D'Alessio.

D'ALESSIO: OK.

KAGAN: Thank you. Could talk to you all day on this one.

SANCHEZ: You talk about baseball fans being angry. There are certainly some people who are angry in the Ukraine. It appears now that some of the questions they have raised have been answered. These are live pictures just moments ago, we heard that the Supreme Court in the Ukraine, which has been out for the better part of a week has made a decision on this case. Jill Dougherty has been following this story. She is joining us now live once again with what that is. Jill Dougherty, to you.

JILL DOUGHERTY, CNN CORRESPONDENT: Well, Rick, it's really a very, very big win for the opposition. The support is that Viktor Yushchenko, who was the opposition candidate who claimed that this election was stolen from him. And now the Supreme Court of Ukraine in that ruling deliberating for about seven hours finally came out, and you could have heard a pin drop throughout Kiev. But when the decision was announced, there were huge cheers. They have invalidated that second round, held on November 21st and said there should be new elections. Now the court doesn't say what kind of elections. We don't know when they will be. These are all questions that will be determined later. But this is a very important moment for the opposition. Viktor Yushchenko getting another chance to get what he claims should have been his all along.

SANCHEZ: Jill, back to us?

DOUGHERTY: Yes. Back to you.

SANCHEZ: Jill, while you're there, let me try and clear this up. Because as I read this situation, Yushchenko says, and that's the one that's favored more by the Europeans and the United States, he says what he wants is just another runoff. He doesn't want to have the whole shoot and caboodle done all over again while Kucha and the Kremlin are saying, no, if you do it, you have to do it all over again. Can you break down why each wants different scenarios and what they would mean?

DOUGHERTY: Absolutely. If Yushchenko gets what he wants they would have elections let's say in a couple of weeks. So there would not be any waiting around and looking at the polls right now, he would win handily if they had the vote soon. Now what President Kucha wants, of course supporting the other candidate, he wants a new round of elections. And if they went to a totally new, start from scratch round that could take three months. And heaven knows what would happen in three months. So the opposition is now saying let's do it and let's do it very soon. SANCHEZ: Interesting. It's like a trial lawyer trying to delay, delay, delay, to see if things could possibly change in his favor in the future. As far as the Kremlin is concerned, we understand that Putin has suddenly made an appearance and had meetings to try and perhaps get his way in this thing. What can you tell us about that?

DOUGHERTY: He did. Well, he had an amazing moment when the president of Ukraine, yesterday, in the midst of all this craziness flies off to Moscow and says, Mr. Putin thank you very much for your help and support, we couldn't be going through this without your help and then President Putin who had said no one should interfere. The Ukrainians should decide everything, in the next breath he jumped in and began to tell them how they ought to run a runoff election. It was really quite striking. But the Russians have been very overt and Mr. Putin himself actually came here and in a not so veiled attempt, twice came here to support the government candidate. So it's not surprising. Rick?

SANCHEZ: Is there any possibility there could be another candidate that could come into the fray? I mean, right now you have Yanukovich and Yushchenko. Will it be those two in this election as we see it now?

DOUGHERTY: You know, Rick, that's another very good question. Because Yanukovich, who is the prime minister, don't forget, he's on a very, really sinking position, because just a couple of days ago, the parliament had a no confidence vote and demanded that the president fire him. So this is a man who's very, very weak right now. And perhaps they'd want to go to another candidate. But that's still not clear. Now we have the negotiations that will go back into the parliament. The two sides will be negotiating. There's a lot of back room discussion here of what kind of elections there should be. But again, the bottom line here, Rick, extremely important, is that the court agrees with the opposition that there had been major violations and said that shouldn't stand and the voters should have another chance to express their will.

SANCHEZ: But we don't know at this point and correct me if I'm wrong, when the election will be held or in what form the election will be held. Those details still have to be worked out?

DOUGHERTY: Correct. And we'll just have to see how they work that out. That's more negotiating, there.

SANCHEZ: Jill Dougherty following that story for us. As you heard right here on CNN ...

DOUGHERTY: Oh.

SANCHEZ: Go ahead, Jill. Go ahead.

DOUGHERTY: I'm sorry. I think we just heard, from Maxine(PH) -- revote within three weeks. OK. That's pretty much what the opposition wanted. They will revote within three weeks. Again, that's ...

SANCHEZ: Revote within three weeks and again ...

DOUGHERTY: Within three weeks.

SANCHEZ: Just to be clear, are we talking about just between these two fellows, these two candidates in a runoff or the entire process beginning from the beginning with possibly more candidates?

DOUGHERTY: No. This would be a repeat of the runoff. Remember, we're talking - It's real complicated. But there was the first vote happened, then the runoff. Neither candidate got 50 percent. So they had to have a runoff. And the runoff is what is in dispute. That's what they said has these massive violations. SO it will be a repeat of the runoff. But, again, we don't know all the details. We'll just have to see what they figure out.

SANCHEZ: We certainly appreciate that. Jill Dougherty all over that story as it happens, right here on CNN. I suppose it is a win, then, for Yushchenko.

KAGAN: I think it's a big win for the opposition.

SANCHEZ: It's what they are saying he wanted, to have a quick election and make sure it was a runoff.

KAGAN: And just fascinating. People watch CNN for breaking news. It's happening even as Jill was giving the report.

SANCHEZ: We were learning it when they were learning it.

KAGAN: That's when it's fun to be here. All right. We have a lot of other news to cover. One of the boldest and bloodies attacks yet by insurgents in Iraq. We are going to take to you the fighting.

SANCHEZ: Later, it's called data mining. And what it's digging up is you. A look at computer privacy or privacy as they say across the Atlantic. It continues with a man that looks at everything about your life for a price. And we're coming to be coming right back on that.

(COMMERCIAL BREAK)

KAGAN: To Iraq now, insurgents staged a wave after tacks across Baghdad today leaving at least 29 people dead. Most of the deaths occurred during Friday prayers at a mosque. Iraqi police say it was attacked by four suicide bombers in a minivan. Insurgents with guns and rocket propelled grenades also stormed a police station on Baghdad's airport road. The ambush killed 11 officers.

SANCHEZ: Rescue crews are scrambling to try and reach thousands of people stranded by flooding and mudslides in the Philippines. Back to back storms including a typhoon hit the northern provinces this week. At least 1,000 people are dead or missing. Close to 200,000 residents have fled their homes during this disaster.

KAGAN: Let's see what kind of weather news is happening here in the U.S. Orelon Sidney getting that for us. Hi, Orelon. (WEATHER REPORT)

KAGAN: We're looking at computer privacy.

SANCHEZ: Privacy.

KAGAN: Privacy. Tomato.

SANCHEZ: It's digging, almost everything about your life can be had or revealed about a computer. Did you know?

KAGAN: Lovely. So happy to know that. You're going to meet the man who will do it and he's not making apologies about it. That's coming up next.

(COMMERCIAL BREAK)

KAGAN: And we have breaking news for you. Off the coast of Puerto Rico, a boat carrying as many as 80 immigrants supposedly has capsized. And a number of rescues taking place. It looks like this will be the result of some successful rescues. This boat originally spotted in the middle of the night and the Coast Guard tried to intervene. At the time, the boat tried to make an illegal entry into Puerto Rico yet again. Apparently they deployed a raft when they saw the boat capsize. Currently they're still trying to hoist immigrants to safety at this time. And it is unclear how many people were on the boat. But once again, rescues taking place off the coast of Puerto Rico.

SANCHEZ: It has been a busy morning. Let's try and get you up to date now on all the stories that have been taking place in the last couple of hours. President Bush nominates former New York Police commissioner Bernie Kerik to head the Homeland Security department. Kerik received widespread praise for helping coordinate his city's response to the 9/11 terror attacks.

Also a Roman Catholic diocese in suburban Los Angeles led by the bishop you see here is settling with abuse victims. Once finalized, sources tell CNN it's going to be the largest payout in the history of the sex abuse scandals, exceeding the $85 million settlement with the Archdiocese of Boston.

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