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CNN Live At Daybreak
Violent Day in Iraq; 'The War Room'; Abbas Reaches Out; Corporate Trials
Aired January 19, 2005 - 05:30 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.
(COMMERCIAL BREAK)
CAROL COSTELLO, CNN ANCHOR: And good morning to you, welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
At least 25 Iraqis are dead this morning after a series of suicide car bombings. Four of the attacks happened in and around Baghdad within a 90-minute span.
Condoleezza Rice goes back to Capitol Hill in about three-and-a- half hours, that's when a Senate panel starts day two of a hearing on her nomination as Secretary of State. She's been facing heated questions from Democrats about Iraq.
In the meantime, the man Rice hopes to replace is getting a sendoff. Outgoing Secretary of State Colin Powell gives a farewell speech to State Department workers later this morning.
And the man who sparked a four-hour standoff near the White House appears in federal court this morning. Federal agents say he threatened to ignite a substance in a van. Nearby buildings had to be evacuated.
To the Forecast Center now and, Chad, good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
MYERS: Carol, back to you.
COSTELLO: All right, thank you -- Chad.
MYERS: You're welcome.
COSTELLO: One right after the other, in Baghdad, a series of car bombings today, the latest just about an hour ago. At least 25 people are dead, dozens more are injured.
Live now for details on all of this from our Jeff Koinange. He's in Baghdad.
Hello -- Jeff. JEFF KOINANGE, CNN CORRESPONDENT: Hello there, Carol.
Now a couple of those suicide bombings were so powerful they shook us out of bed this morning, rattling the windows and shaking the walls.
First, next to the Australian Embassy this morning, a suicide bomber detonated himself, killing one innocent bystander, wounding up to five, including, we hear, two Australian soldiers.
The next one less than half an hour later, even more powerful, this one right outside the Iraqi Emergency Police headquarters. We're hearing that up to 18 people have been killed in that one, including 13 Iraqi policemen. And so far we're hearing there are more than 20 wounded in that incident.
And yet a third one at the Iraqi military headquarters, about a mile from where I'm standing now. That one killed two Iraqi soldiers and injured several more.
And yet one more in the southern entrance to Baghdad. That one killed four Iraqi soldiers and it wounded one U.S. soldier as well.
All this, Carol, with less than 11 days to go before this country gears towards landmark elections January 30. Looks like the insurgent attacks are on the upswing once again -- Carol.
COSTELLO: Jeff Koinange, live in Baghdad this morning, thank you.
As we enter "The War Room" today, more allegations of prisoner abuse in Iraq, this time against British soldiers. British newspapers this morning are running some disturbing pictures. They apparently show British troops abusing Iraqi prisoners. So will troops on the ground now face a greater risk? And will British Prime Minister Tony Blair take a political hit back home?
Joining us now live from Atlanta, CNN's senior international editor David Clinch.
These pictures seem worse than the ones out of Abu Ghraib -- David.
DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: In some ways they do. And if you remember the Abu Ghraib story, I remember the morning you and I discussed Abu Ghraib, the morning after it had been on "60 Minutes." The story had been out there, but something happened to the story overnight.
And we're seeing the same sort of thing here. These images emerged from a court case yesterday against British troops. But overnight, we've seen this, the media in Britain all over the story this morning. Front page news in Britain, really graphic images of British soldiers apparently abusing Iraqis.
So, first of all, will this, and it's hard to imagine it won't, be a massive political problem for Prime Minister Blair today. We'll be hearing from him in an hour and a half or so in his normal question time in Parliament.
But also, again, the same thing with Abu Ghraib is happening again here today. Will this create a greater security problem for the British troops who are in Iraq right now? British troops had not really taken the brunt of the aftermath of the Abu Ghraib scandal. But will they now face with these images of British soldiers apparently abusing Iraqis, will they now face greater attacks in the southern part of Iraq just less than two weeks away from the elections?
The southern part of Iraq had been fairly safe. Now the British troops fearful. These images all over the Arab networks, all over Iraqi TV today, will those British troops face a greater security problem in their part of Iraq in the next few days and weeks?
COSTELLO: And you know, David, the really strange part of this story is how these pictures came to light. Apparently, some soldier sent the pictures home to be developed. The women developing the pictures became upset and called authorities.
CLINCH: Yes, rather pathetic. He sent them in apparently to be produced in a shop in Britain. Somebody noticed them, called the police and it's led to this. It's really dreadful.
You heard President Bush telling John King in that interview yesterday that the U.S. needs to do a better job of PR in this region. Well it's hard to counter this kind of bad PR, whether it's U.S. or British. The militants don't need any help when images like this get out on Arab TV and Iraqi TV as they are today.
COSTELLO: David Clinch, live in Atlanta this morning, thank you.
CLINCH: All right.
COSTELLO: More meetings with militants, that's what Palestinian leader Mahmoud Abbas has on tap today. In the meantime, his security forces are gearing up for a major deployment.
CNN's Guy Raz is in Gaza with the latest.
Hello -- Guy.
UNIDENTIFIED MALE: I'm sorry.
UNIDENTIFIED MALE: No live feed.
COSTELLO: Whoa, I don't believe he can hear us. We're going to get back to Guy when we can. We apologize for that.
It's a bizarre and heartbreaking case, two Tennessee children are still missing. Just ahead, their foster mother talks about what it felt like to have the kids snatched from her at gunpoint.
But first, here's a look at what else is making news this Wednesday morning.
(COMMERCIAL BREAK)
COSTELLO: All right. We were telling you before the break that the Palestinian Prime Minister Mahmoud Abbas is meeting with militants in the Palestinian territory.
So let's head back there live to talk to Guy Raz to find out what's happening.
Good morning.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
Mahmoud Abbas or Abu Mazen has been the president of the Palestinian National Authority for less than a week, but the job is already proving to be one of the most complicated in the region. Now Mr. Abbas will remain in the area for the coming days in a bid to convince Palestinian militant groups to halt their attacks on Israeli town settlements and villages.
Now Mr. Abbas essentially being squeezed from two sides. On the one hand by Israel, which is demanding Mr. Abbas crack down on groups like Hamas and Islamic Jihad, but at the same time by those same groups which essentially say they will not halt their attacks so long as Israel continues to target their leaders for assassination.
Now overnight, Hamas carried out a suicide bombing in Tak (ph) here in Gaza, just about a mile from where we're located, killing one Israeli intelligence officer and badly wounding seven others.
Now Israel is essentially threatening to launch a major offensive incursion into Gaza unless Mr. Abbas can crack down on these groups and convince them to halt their attacks against Israel.
Now Mr. Abbas is a deputy here in Gaza, the head of Palestinian security in the area. It was recently announced that he will begin deploying hundreds of Palestinian security forces along Gaza's border with Israel in a bid, not only to halt attacks against Israeli towns and villages, but also, perhaps, Carol, to preempt any Israeli incursion into this area.
COSTELLO: Guy Raz, reporting live for us this morning, thank you.
The FBI is now helping to hunt for two young children apparently kidnapped from their foster home in North Carolina by their parents. Eleven-month-old Breanna and 2-year-old James Paul Chambers had been in foster care since last March. Their parents are involved in a drug case.
The children's foster mother describes the abduction in an exclusive CNN interview. She doesn't want her face shown due to fear of community and family backlash, so here's our look this morning "Beyond the Soundbite."
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: And they said, we're here for the kids. We want the kids. And I started to say no and to push them back, because they were pushing forward, and James pulled out a gun. They're part of our family.
They're my babies. I mean, Breanna was just 3 months old when she came to us, and she's all -- I'm all she knows as a mom. I've been there for her new teeth and her learning to stand up.
RANDI KAYE, CNN CORRESPONDENT: So how do you go to bed at night wondering where they are? Today is now day three of the manhunt.
UNIDENTIFIED FEMALE: I don't want to go to bed, and I don't want to wake up, I just want them home safely. They came out of a meth lab situation.
KAYE: When you see a baby bottle in the sink and a sippy cup next to the remains of meth that was made, what does that say to you?
UNIDENTIFIED FEMALE: It's scary to think about what those children have been exposed to.
KAYE: What would you want to say tonight to their biological parents?
UNIDENTIFIED FEMALE: That what they're offering those children is not adequate for anybody to grow up, to live a normal, healthy life. They might love those children, but they're not giving them what they need. And if they can't make the choice for the children, then let somebody else who will love them and support them have them to love and to be a part of their family.
(END VIDEO CLIP)
COSTELLO: CNN's "AMERICAN MORNING" will have an in-depth interview with the foster parents of Breanna and Paul Chambers. That comes your way just about an hour from now.
Your news, money, weather and sports. It's 5:44 Eastern. Here's what's all new this morning.
A string of suicide car bombings leaves more than two dozen Iraqis dead. Four of the attacks happened in and around Baghdad. Another took place south of the capital.
California carries out its first execution in three years. Prison officials gave Donald Beardslee a lethal injection about two hours ago. Beardslee was condemned for killing two women in 1984.
In money news, the NFL is coming to an iPod near you. They announced a deal that will let you buy recorded copies of the play-by- play audio of this weekend's championship games. Replays of the Super Bowl also will be available the day after the big game.
In culture, the first "Survivor" may get voted into a jail cell by IRS. Richard Hatch, who won a million dollars on the reality show, has been charged with filing false tax returns. It seems he didn't claim his winnings as income. Oops.
In sports, Roger Clemens is asking for $22 million from the Houston Astros. That's $3.5 million over the previous record asked for by Derek Jeter. But Clemens still hasn't decided if he even wants to play this season.
He's 42 years old -- Chad.
MYERS: Yes, and he's going to win the lottery every year for the rest of his life as long as he decides to keep playing or somebody keeps paying him.
Good morning -- Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
And those are the headlines for you this morning.
It was the largest corporate bankruptcy in U.S. history. The question: was this man responsible? A look at the arguments in the WorldCom case next.
Don't forget our e-mail "Question of the Morning," should movie theaters be required to list exact start times so you don't have to sit through all the previews and the commercials? Send your thoughts to DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.
From New York, this is DAYBREAK for a Wednesday.
(COMMERCIAL BREAK)
COSTELLO: A reminder to you, send us those e-mails. Our "Question of the Morning," should movie theaters be required to list exact start times so you don't have to sit through all those previews and commercials? DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.
"Across America" this morning.
Remember this video, an arrest in Inglewood, California with Police Officer Jeremy Morse getting rough with a black teenager? Morse was tried twice but both juries deadlocked and then the charges were dismissed. But Morse was fired anyway, so he and his partner filed a discrimination lawsuit against the city and a jury has awarded Morse a $1.6 million verdict.
Here's some reaction to that award.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If they're going to get paid for doing their job, well, you know to pay them for not for handling it like that (ph). (END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Think it's shocking compared to what was on the tape that they're getting awarded for something that looks like they were at fault.
(END VIDEO CLIP)
COSTELLO: Morse's partner will get more than $800,000.
An Iraqi-American businessman has pleaded guilty to four charges in the United Nations Oil-For-Food program for Iraq. Samir Vincent is the first person charged in the federal investigation. This is a picture from Vincent's college days. During his guilty plea, Vincent implied Saddam Hussein's regime bribed an unnamed United Nations official.
And in New York, former Tyco CEO Dennis Kozlowski is on trial again. He's charged with stealing $600 million from the company in a massive fraud scheme. The judge declared a mistrial during jury deliberations in Kozlowski's first trial last April.
In the meantime, another big corporate trial is getting under way in New York. Jury selection set to begin in the case against former WorldCom head Bernard Ebbers. It centers on the largest bankruptcy in U.S. corporate history.
DAYBREAK contributor Ali Velshi is here to show us what's in store for them and take us on a trip down memory lane.
ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Not a good memory for some people. This bankruptcy affected a great, great number of people in America. And it was the -- Bernie Ebbers was really responsible for the hype largely around the telecom industry long after the telecom industry started to slow down in America.
Now WorldCom, the company he headed, was once the second largest U.S. telecom company. Ebbers was a self-made millionaire. He was a former basketball coach from Canada. Now he started the Mississippi- based WorldCom in 1983, eventually merging it with telecom giant MCI. He earned a reputation as a masterful dealmaker. But the biggest deal evaded him when he abandoned a merger attempt with Sprint in the year 2000.
The growth in the telecom industry had been slowing, and for once, Bernie Ebbers didn't have a high-profile deal in the works. And prosecutors say that's when the trouble started. They say Ebbers and his CFO Scott Sullivan began an 18-month long scheme to hide the truth about the company's growth and expenses from investors. And they say it worked until a federal investigation in 2002 uncovered that scheme.
WorldCom stock dropped 83 percent in July of 2002 with $107 billion in assets. But unable to pay its bills, WorldCom filed for the largest corporate bankruptcy in U.S. history, more than 20,000 people out of their jobs. Investors lost the entire value of stock that they held. And that prodded Congress to finally heed calls for stronger laws to protect investors and that resulted in the Sarbanes- Oxley bill holding CEOs to greater account with respect to their numbers.
Now the issue is that Ebbers, like others, said they didn't know what was going on. Nine months ago, Bernie Ebbers was indicted on criminal fraud and conspiracy charges. He says he's innocent. But he's got some trouble in front of him because former CFO Scott Sullivan will be the chief government witness. Sullivan faced the first trial in this case, but he pleaded guilty last March and he agreed to testify against Ebbers.
Ebbers says Sullivan, who has a reputation as a financial genius, was a financial genius. And he says that if Sullivan was cooking the books, he had no idea it was going on.
The trial could last up to two months. If Ebbers is convicted on all counts, the 63-year-old could face up to 85 years in prison. The company, as you know, now called MCI and headed by Michael Capellas, who used to head Compaq, and has emerged from bankruptcy.
COSTELLO: I always like it when the head of companies say you know I don't know, I don't know what was going on in my own company.
VELSHI: It's unacceptable. It's unacceptable. And the Sarbanes-Oxley bill says that CEOs now have to sign the financial statements. And they sign a statement saying if it's in here, I've seen it and I understand what it is. You can no longer just sign off and send it to the accountants, which is what a lot of these CEOs claimed they were doing.
COSTELLO: Well at least something good came out of this.
VELSHI: Yes.
COSTELLO: Ali Velshi, thank you.
Here's what's all new in the next hour of DAYBREAK.
Keeping watch over the Windy City, he's the man whose job it is to keep Chicago safe from attack.
Plus, 22 of the country's big talkers, talk show radio hosts that is, will broadcast live from tomorrow's inauguration. We'll get a preview of what's on their agenda.
(COMMERCIAL BREAK)
COSTELLO: Earlier we told you that Connecticut is considering a bill that could change the way movie theaters do business. The bill would require theaters to start listing the actual start time for movies, that's so people don't show up for a feature film and have to sit through commercials and all those previews first. But theater owners say wait a minute, that's the only way you can keep ticket prices reasonable. Of course that's only if you think nearly 10 bucks for a movie ticket is reasonable.
So it's time to read some e-mail -- Chad.
MYERS: I have a couple here.
From Ronald (ph) in New York, he says heck no, don't do that because the movies are the only thing I'm ever on time for, everything else I'm late.
And Dan Ryan (ph) from New York says hey, for God's sake, yes, please. I went to go see "Meet the Fockers" and it didn't start for 45 minutes after the scheduled time. I realize the snack line was busy, but that's ridiculous, I was on time.
VELSHI: But a bill. Does this need to be legislated?
COSTELLO: Yes, it's going to go through the Connecticut State Legislator, it's been introduced. So, yes, they're going to maybe pass a law.
VELSHI: Wow!
MYERS: And J.J. (ph) from Atlanta says, actually I love watching the commercials and I love watching the previews. In fact, because of some motion pictures, such as Oliver Stone's "Alexander," the previews are more entertaining than the picture.
COSTELLO: That's a good one.
This is from Irvish (ph) from Buffalo, New York. As far as the argue to keeping ticket prices at a reasonable price, let's not kid ourselves here, they already charge exorbitant amounts of money for all the refreshments.
VELSHI: Yes.
COSTELLO: That alone is profit making for the theaters.
And this is from -- I don't like when you people don't put your names, because we always like the names on e-mails. But this is what this one says. Yes, they should be required to give the real movie starting times, just as doctors should give you the real time for an appointment.
VELSHI: Hey, I'm the guy who for 20 years has had his clock radio 10 minutes fast and I get fooled by it every day. So it's going to throw me off if they do this.
COSTELLO: The next hour of DAYBREAK begins right now.
MYERS: Actually, maybe in 10 minutes.
(COMMERCIAL BREAK)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 19, 2005 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
CAROL COSTELLO, CNN ANCHOR: And good morning to you, welcome to the second half-hour of DAYBREAK. From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."
At least 25 Iraqis are dead this morning after a series of suicide car bombings. Four of the attacks happened in and around Baghdad within a 90-minute span.
Condoleezza Rice goes back to Capitol Hill in about three-and-a- half hours, that's when a Senate panel starts day two of a hearing on her nomination as Secretary of State. She's been facing heated questions from Democrats about Iraq.
In the meantime, the man Rice hopes to replace is getting a sendoff. Outgoing Secretary of State Colin Powell gives a farewell speech to State Department workers later this morning.
And the man who sparked a four-hour standoff near the White House appears in federal court this morning. Federal agents say he threatened to ignite a substance in a van. Nearby buildings had to be evacuated.
To the Forecast Center now and, Chad, good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
(WEATHER REPORT)
MYERS: Carol, back to you.
COSTELLO: All right, thank you -- Chad.
MYERS: You're welcome.
COSTELLO: One right after the other, in Baghdad, a series of car bombings today, the latest just about an hour ago. At least 25 people are dead, dozens more are injured.
Live now for details on all of this from our Jeff Koinange. He's in Baghdad.
Hello -- Jeff. JEFF KOINANGE, CNN CORRESPONDENT: Hello there, Carol.
Now a couple of those suicide bombings were so powerful they shook us out of bed this morning, rattling the windows and shaking the walls.
First, next to the Australian Embassy this morning, a suicide bomber detonated himself, killing one innocent bystander, wounding up to five, including, we hear, two Australian soldiers.
The next one less than half an hour later, even more powerful, this one right outside the Iraqi Emergency Police headquarters. We're hearing that up to 18 people have been killed in that one, including 13 Iraqi policemen. And so far we're hearing there are more than 20 wounded in that incident.
And yet a third one at the Iraqi military headquarters, about a mile from where I'm standing now. That one killed two Iraqi soldiers and injured several more.
And yet one more in the southern entrance to Baghdad. That one killed four Iraqi soldiers and it wounded one U.S. soldier as well.
All this, Carol, with less than 11 days to go before this country gears towards landmark elections January 30. Looks like the insurgent attacks are on the upswing once again -- Carol.
COSTELLO: Jeff Koinange, live in Baghdad this morning, thank you.
As we enter "The War Room" today, more allegations of prisoner abuse in Iraq, this time against British soldiers. British newspapers this morning are running some disturbing pictures. They apparently show British troops abusing Iraqi prisoners. So will troops on the ground now face a greater risk? And will British Prime Minister Tony Blair take a political hit back home?
Joining us now live from Atlanta, CNN's senior international editor David Clinch.
These pictures seem worse than the ones out of Abu Ghraib -- David.
DAVID CLINCH, CNN SENIOR INTERNATIONAL EDITOR: In some ways they do. And if you remember the Abu Ghraib story, I remember the morning you and I discussed Abu Ghraib, the morning after it had been on "60 Minutes." The story had been out there, but something happened to the story overnight.
And we're seeing the same sort of thing here. These images emerged from a court case yesterday against British troops. But overnight, we've seen this, the media in Britain all over the story this morning. Front page news in Britain, really graphic images of British soldiers apparently abusing Iraqis.
So, first of all, will this, and it's hard to imagine it won't, be a massive political problem for Prime Minister Blair today. We'll be hearing from him in an hour and a half or so in his normal question time in Parliament.
But also, again, the same thing with Abu Ghraib is happening again here today. Will this create a greater security problem for the British troops who are in Iraq right now? British troops had not really taken the brunt of the aftermath of the Abu Ghraib scandal. But will they now face with these images of British soldiers apparently abusing Iraqis, will they now face greater attacks in the southern part of Iraq just less than two weeks away from the elections?
The southern part of Iraq had been fairly safe. Now the British troops fearful. These images all over the Arab networks, all over Iraqi TV today, will those British troops face a greater security problem in their part of Iraq in the next few days and weeks?
COSTELLO: And you know, David, the really strange part of this story is how these pictures came to light. Apparently, some soldier sent the pictures home to be developed. The women developing the pictures became upset and called authorities.
CLINCH: Yes, rather pathetic. He sent them in apparently to be produced in a shop in Britain. Somebody noticed them, called the police and it's led to this. It's really dreadful.
You heard President Bush telling John King in that interview yesterday that the U.S. needs to do a better job of PR in this region. Well it's hard to counter this kind of bad PR, whether it's U.S. or British. The militants don't need any help when images like this get out on Arab TV and Iraqi TV as they are today.
COSTELLO: David Clinch, live in Atlanta this morning, thank you.
CLINCH: All right.
COSTELLO: More meetings with militants, that's what Palestinian leader Mahmoud Abbas has on tap today. In the meantime, his security forces are gearing up for a major deployment.
CNN's Guy Raz is in Gaza with the latest.
Hello -- Guy.
UNIDENTIFIED MALE: I'm sorry.
UNIDENTIFIED MALE: No live feed.
COSTELLO: Whoa, I don't believe he can hear us. We're going to get back to Guy when we can. We apologize for that.
It's a bizarre and heartbreaking case, two Tennessee children are still missing. Just ahead, their foster mother talks about what it felt like to have the kids snatched from her at gunpoint.
But first, here's a look at what else is making news this Wednesday morning.
(COMMERCIAL BREAK)
COSTELLO: All right. We were telling you before the break that the Palestinian Prime Minister Mahmoud Abbas is meeting with militants in the Palestinian territory.
So let's head back there live to talk to Guy Raz to find out what's happening.
Good morning.
GUY RAZ, CNN CORRESPONDENT: Good morning, Carol.
Mahmoud Abbas or Abu Mazen has been the president of the Palestinian National Authority for less than a week, but the job is already proving to be one of the most complicated in the region. Now Mr. Abbas will remain in the area for the coming days in a bid to convince Palestinian militant groups to halt their attacks on Israeli town settlements and villages.
Now Mr. Abbas essentially being squeezed from two sides. On the one hand by Israel, which is demanding Mr. Abbas crack down on groups like Hamas and Islamic Jihad, but at the same time by those same groups which essentially say they will not halt their attacks so long as Israel continues to target their leaders for assassination.
Now overnight, Hamas carried out a suicide bombing in Tak (ph) here in Gaza, just about a mile from where we're located, killing one Israeli intelligence officer and badly wounding seven others.
Now Israel is essentially threatening to launch a major offensive incursion into Gaza unless Mr. Abbas can crack down on these groups and convince them to halt their attacks against Israel.
Now Mr. Abbas is a deputy here in Gaza, the head of Palestinian security in the area. It was recently announced that he will begin deploying hundreds of Palestinian security forces along Gaza's border with Israel in a bid, not only to halt attacks against Israeli towns and villages, but also, perhaps, Carol, to preempt any Israeli incursion into this area.
COSTELLO: Guy Raz, reporting live for us this morning, thank you.
The FBI is now helping to hunt for two young children apparently kidnapped from their foster home in North Carolina by their parents. Eleven-month-old Breanna and 2-year-old James Paul Chambers had been in foster care since last March. Their parents are involved in a drug case.
The children's foster mother describes the abduction in an exclusive CNN interview. She doesn't want her face shown due to fear of community and family backlash, so here's our look this morning "Beyond the Soundbite."
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: And they said, we're here for the kids. We want the kids. And I started to say no and to push them back, because they were pushing forward, and James pulled out a gun. They're part of our family.
They're my babies. I mean, Breanna was just 3 months old when she came to us, and she's all -- I'm all she knows as a mom. I've been there for her new teeth and her learning to stand up.
RANDI KAYE, CNN CORRESPONDENT: So how do you go to bed at night wondering where they are? Today is now day three of the manhunt.
UNIDENTIFIED FEMALE: I don't want to go to bed, and I don't want to wake up, I just want them home safely. They came out of a meth lab situation.
KAYE: When you see a baby bottle in the sink and a sippy cup next to the remains of meth that was made, what does that say to you?
UNIDENTIFIED FEMALE: It's scary to think about what those children have been exposed to.
KAYE: What would you want to say tonight to their biological parents?
UNIDENTIFIED FEMALE: That what they're offering those children is not adequate for anybody to grow up, to live a normal, healthy life. They might love those children, but they're not giving them what they need. And if they can't make the choice for the children, then let somebody else who will love them and support them have them to love and to be a part of their family.
(END VIDEO CLIP)
COSTELLO: CNN's "AMERICAN MORNING" will have an in-depth interview with the foster parents of Breanna and Paul Chambers. That comes your way just about an hour from now.
Your news, money, weather and sports. It's 5:44 Eastern. Here's what's all new this morning.
A string of suicide car bombings leaves more than two dozen Iraqis dead. Four of the attacks happened in and around Baghdad. Another took place south of the capital.
California carries out its first execution in three years. Prison officials gave Donald Beardslee a lethal injection about two hours ago. Beardslee was condemned for killing two women in 1984.
In money news, the NFL is coming to an iPod near you. They announced a deal that will let you buy recorded copies of the play-by- play audio of this weekend's championship games. Replays of the Super Bowl also will be available the day after the big game.
In culture, the first "Survivor" may get voted into a jail cell by IRS. Richard Hatch, who won a million dollars on the reality show, has been charged with filing false tax returns. It seems he didn't claim his winnings as income. Oops.
In sports, Roger Clemens is asking for $22 million from the Houston Astros. That's $3.5 million over the previous record asked for by Derek Jeter. But Clemens still hasn't decided if he even wants to play this season.
He's 42 years old -- Chad.
MYERS: Yes, and he's going to win the lottery every year for the rest of his life as long as he decides to keep playing or somebody keeps paying him.
Good morning -- Carol.
(WEATHER REPORT)
COSTELLO: Thank you, Chad.
And those are the headlines for you this morning.
It was the largest corporate bankruptcy in U.S. history. The question: was this man responsible? A look at the arguments in the WorldCom case next.
Don't forget our e-mail "Question of the Morning," should movie theaters be required to list exact start times so you don't have to sit through all the previews and the commercials? Send your thoughts to DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.
From New York, this is DAYBREAK for a Wednesday.
(COMMERCIAL BREAK)
COSTELLO: A reminder to you, send us those e-mails. Our "Question of the Morning," should movie theaters be required to list exact start times so you don't have to sit through all those previews and commercials? DAYBREAK@CNN.com. That's DAYBREAK@CNN.com.
"Across America" this morning.
Remember this video, an arrest in Inglewood, California with Police Officer Jeremy Morse getting rough with a black teenager? Morse was tried twice but both juries deadlocked and then the charges were dismissed. But Morse was fired anyway, so he and his partner filed a discrimination lawsuit against the city and a jury has awarded Morse a $1.6 million verdict.
Here's some reaction to that award.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If they're going to get paid for doing their job, well, you know to pay them for not for handling it like that (ph). (END VIDEO CLIP)
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UNIDENTIFIED MALE: Think it's shocking compared to what was on the tape that they're getting awarded for something that looks like they were at fault.
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COSTELLO: Morse's partner will get more than $800,000.
An Iraqi-American businessman has pleaded guilty to four charges in the United Nations Oil-For-Food program for Iraq. Samir Vincent is the first person charged in the federal investigation. This is a picture from Vincent's college days. During his guilty plea, Vincent implied Saddam Hussein's regime bribed an unnamed United Nations official.
And in New York, former Tyco CEO Dennis Kozlowski is on trial again. He's charged with stealing $600 million from the company in a massive fraud scheme. The judge declared a mistrial during jury deliberations in Kozlowski's first trial last April.
In the meantime, another big corporate trial is getting under way in New York. Jury selection set to begin in the case against former WorldCom head Bernard Ebbers. It centers on the largest bankruptcy in U.S. corporate history.
DAYBREAK contributor Ali Velshi is here to show us what's in store for them and take us on a trip down memory lane.
ALI VELSHI, CNN DAYBREAK CONTRIBUTOR: Not a good memory for some people. This bankruptcy affected a great, great number of people in America. And it was the -- Bernie Ebbers was really responsible for the hype largely around the telecom industry long after the telecom industry started to slow down in America.
Now WorldCom, the company he headed, was once the second largest U.S. telecom company. Ebbers was a self-made millionaire. He was a former basketball coach from Canada. Now he started the Mississippi- based WorldCom in 1983, eventually merging it with telecom giant MCI. He earned a reputation as a masterful dealmaker. But the biggest deal evaded him when he abandoned a merger attempt with Sprint in the year 2000.
The growth in the telecom industry had been slowing, and for once, Bernie Ebbers didn't have a high-profile deal in the works. And prosecutors say that's when the trouble started. They say Ebbers and his CFO Scott Sullivan began an 18-month long scheme to hide the truth about the company's growth and expenses from investors. And they say it worked until a federal investigation in 2002 uncovered that scheme.
WorldCom stock dropped 83 percent in July of 2002 with $107 billion in assets. But unable to pay its bills, WorldCom filed for the largest corporate bankruptcy in U.S. history, more than 20,000 people out of their jobs. Investors lost the entire value of stock that they held. And that prodded Congress to finally heed calls for stronger laws to protect investors and that resulted in the Sarbanes- Oxley bill holding CEOs to greater account with respect to their numbers.
Now the issue is that Ebbers, like others, said they didn't know what was going on. Nine months ago, Bernie Ebbers was indicted on criminal fraud and conspiracy charges. He says he's innocent. But he's got some trouble in front of him because former CFO Scott Sullivan will be the chief government witness. Sullivan faced the first trial in this case, but he pleaded guilty last March and he agreed to testify against Ebbers.
Ebbers says Sullivan, who has a reputation as a financial genius, was a financial genius. And he says that if Sullivan was cooking the books, he had no idea it was going on.
The trial could last up to two months. If Ebbers is convicted on all counts, the 63-year-old could face up to 85 years in prison. The company, as you know, now called MCI and headed by Michael Capellas, who used to head Compaq, and has emerged from bankruptcy.
COSTELLO: I always like it when the head of companies say you know I don't know, I don't know what was going on in my own company.
VELSHI: It's unacceptable. It's unacceptable. And the Sarbanes-Oxley bill says that CEOs now have to sign the financial statements. And they sign a statement saying if it's in here, I've seen it and I understand what it is. You can no longer just sign off and send it to the accountants, which is what a lot of these CEOs claimed they were doing.
COSTELLO: Well at least something good came out of this.
VELSHI: Yes.
COSTELLO: Ali Velshi, thank you.
Here's what's all new in the next hour of DAYBREAK.
Keeping watch over the Windy City, he's the man whose job it is to keep Chicago safe from attack.
Plus, 22 of the country's big talkers, talk show radio hosts that is, will broadcast live from tomorrow's inauguration. We'll get a preview of what's on their agenda.
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COSTELLO: Earlier we told you that Connecticut is considering a bill that could change the way movie theaters do business. The bill would require theaters to start listing the actual start time for movies, that's so people don't show up for a feature film and have to sit through commercials and all those previews first. But theater owners say wait a minute, that's the only way you can keep ticket prices reasonable. Of course that's only if you think nearly 10 bucks for a movie ticket is reasonable.
So it's time to read some e-mail -- Chad.
MYERS: I have a couple here.
From Ronald (ph) in New York, he says heck no, don't do that because the movies are the only thing I'm ever on time for, everything else I'm late.
And Dan Ryan (ph) from New York says hey, for God's sake, yes, please. I went to go see "Meet the Fockers" and it didn't start for 45 minutes after the scheduled time. I realize the snack line was busy, but that's ridiculous, I was on time.
VELSHI: But a bill. Does this need to be legislated?
COSTELLO: Yes, it's going to go through the Connecticut State Legislator, it's been introduced. So, yes, they're going to maybe pass a law.
VELSHI: Wow!
MYERS: And J.J. (ph) from Atlanta says, actually I love watching the commercials and I love watching the previews. In fact, because of some motion pictures, such as Oliver Stone's "Alexander," the previews are more entertaining than the picture.
COSTELLO: That's a good one.
This is from Irvish (ph) from Buffalo, New York. As far as the argue to keeping ticket prices at a reasonable price, let's not kid ourselves here, they already charge exorbitant amounts of money for all the refreshments.
VELSHI: Yes.
COSTELLO: That alone is profit making for the theaters.
And this is from -- I don't like when you people don't put your names, because we always like the names on e-mails. But this is what this one says. Yes, they should be required to give the real movie starting times, just as doctors should give you the real time for an appointment.
VELSHI: Hey, I'm the guy who for 20 years has had his clock radio 10 minutes fast and I get fooled by it every day. So it's going to throw me off if they do this.
COSTELLO: The next hour of DAYBREAK begins right now.
MYERS: Actually, maybe in 10 minutes.
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