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American Morning

A Grisly Discovery in Baghdad; President Bush Heads Back to Gulf Coast

Aired March 08, 2006 - 07:00   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien. A new round of attacks in Iraq to tell you about this morning and a grisly discovery in Baghdad. We're live there with the very latest.
MILES O'BRIEN, CNN ANCHOR: Anger over bombings in India. Some new video this morning of protests.

S. O'BRIEN: President Bush heads back to Gulf Coast today. One business owner has this message for the president, though. He says, show us the money. We're live in New Orleans, just ahead of is arrival.

M. O'BRIEN: More intriguing testimony expected at the Enron trial. A former top executive back on the stand. Round two for Andy Fastow.

And this:

(BEGIN VIDEO CLIP)

KRISTI YAMAOKA, SIU CHEERLEADER: I don't know how many times I've hit that stunt perfectly, and no one really cares until you hit the ground.

(END VIDEO CLIP)

M. O'BRIEN: Even a nasty header couldn't dampen the school spirit of this cheerleader. Remains the video of the week for us.

We'll hear her story in her own words, ahead on this AMERICAN MORNING.

President Bush winging his way back to New Orleans and the Gulf Coast today, his tenth trip there since Hurricane Katrina. But will it help him win the PR battle in the administration's handling of the storm.

CNN's Kathleen Koch at the White House.

Kathleen, what's ahead for the president today.

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Miles, the president will be beginning his visit in New Orleans with a tour and then a briefing on the recovery and reconstruction efforts, before then heading on to the very hard-hit area of coastal Mississippi. Now, this is the president's second trip to the region in just over -- or just under two months, and it comes at a time, as you mentioned, when the White House has been taking quite a few hits for the administration's actions in the region. Reports came out this week from two organizations, two groups, saying that the newly repaired levee system come June 1st, when hurricane season starts, would actually be weaker than it was before Hurricane Katrina. Now the Army Corps of Engineers seriously disputes that claim.

Then there was also the release of the video that FEMA briefing that has raised new questions about the administration's preparedness for the storm.

Also a new "ABC News"/"Washington Post" poll shows more 60 percent of Americans surveyed disapproved with how the president has handled Hurricane Katrina. The White House is taking steps today to make sure that the president is not going to the region empty-handed. Earlier this week, the administration extended by 13 weeks the unemployment for people who have lost their jobs because of the hurricane. And then just last night, the White House took the action of extending by more than three months debris pickup in the area on coastal -- of coastal Mississippi. In many of those areas, more than half the debris still remains spread all across the ground, all through these cities. And if they have to pick up the cost of that, that would certainly bankrupt them -- Miles.

M. O'BRIEN: Kathleen, as the president leaves for New Orleans, he's got an open revolt under way in Congress, Republicans demanding legislation that would prompt cargo terminals in the U.S. be owned, operated by U.S. hands, this in the wake of the United Arab Emirates government-owned company trying to purchase -- or run those ports. What's the White House saying about all of this at this point?

KOCH: Miles, this raises quite a difficult problem for the president because, apparently the plan at this point is to attach it to a must-pass spending bill on Iraq. And all the White House is saying about this right now is that the president is standing firm in his support of this Dubai Ports deal, to give most operational control to Dubai Ports World of these six ports in the U.S. So it's going to be a very, very tough situation because the president is still promising, Miles, to veto any congressional efforts to block the deal.

M. O'BRIEN: The battle looms.

Kathleen Koch, thank you -- Soledad.

S. O'BRIEN: A gruesome discovery to tell you about in Baghdad, the bodies of 18 men, their hands tied behind their backs and found strangled.

Live now to CNN's Aneesh Raman. He's in Baghdad for us this morning.

Hey, Aneesh, good morning.

ANEESH RAMAN, CNN CORRESPONDENT: Soledad, good morning. Iraqi police discovered the bodies late yesterday on a minibus in the western part of the capital. All, as you say, 18 men, were strangled to death, their arms bound behind their back. As of now, Iraqi officials have been unable to identify the remains, but we have seen increased numbers in terms of discoveries like this in the past few months, as sectarian tensions here have risen, and this morning alone Iraqi police say they've already found four additional bodies in three separate discoveries. That as is well in the capital, three attacks at least coming against Iraqi police convoys, and the deadliest in the northern part of Baghdad. At least two Iraqi police officers killed, some eight others around that area wounded. In another attack, another Iraqi police officer was killed.

And this morning, the U.S. military, Soledad, saying that yesterday morning a U.S. soldier was killed, four others wounded, after their convoy hit a roadside bomb, an IED in the northwestern part of Iraq -- Soledad.

S. O'BRIEN: All right, brutal day. Thanks, Aneesh. Appreciate the update.

Across northern India today, security has been tightened at most religious institutions. This comes after three bombs on Tuesday killed 14 people in the Hindu city of Varanasi. Police used a water cannon to try to break up a protest today against the bombings. Tuesday's blasts were just minutes apart, injured 16 people. The sites are being cleaned up today. The first explosion was at a temple, the other two came at a railway station, and the fourth bomb was found and then diffused. So far, there has been, though, no claim of any responsibility.

M. O'BRIEN: The man who designed the mirrors and created the smoke that enshrouded Enron on the witness stand this morning. Andy Fastow is a key witness in the fraud trial of Enron founder Key Lay and Jeffrey Skilling, its former CEO.

CNN's Chris Huntington live in Houston for us this morning.

What can we expect today, Chris?

CHRIS HUNTINGTON, CNN CORRESPONDENT: Well, Miles, we'll get Andy Fastow on the stand for another two hours of direct testimony, then the defense lawyers will have their shot at him no for cross- examination. Keep in mind, this is the first time that Andy Fastow, the former chief financial officer of Enron has spoken publicly about what went on in the company four-and-a-half years ago. And he did not pull any punches on the witness stand.

(BEGIN VIDEOTAPE)

HUNTINGTON (voice-over): Andy Fastow is living up to is advanced billing as the government's most potent witness in the case against his former bosses. For more than six hours yesterday, Fastow testified that Enron was racked with money-losing ventures around the world, and run by executives desperate to keep up appearances to fool investors. He told jurors that Lay and Skilling and the board of directors gave him special clearance and tens of millions of dollars on top of his CFO salary to run off-the-book deals that fraudently propped up Enron's finances. At once point, Fastow quoted Jeff Skilling as encouraging him to, quote, "Get me as much of that juice as you can," earnings juice.

JACOB ZAMANSKY, SECURITIES LAWYER: Fastow did two things. He laid out in broad brush out how the company was misleading investors, and how Lay and Skilling knew about it. He then also went through all of the specifics of each partnership, and showed how those phony transactions were done to mislead investors. It was very effective.

HUNTINGTON: Fastow boasted at one point that he felt like a hero for creating the convoluted transactions that hid Enron's debt, but he conceded he was obnoxious and rubbed other Enron executives faces in the fact that his deals covered up their losses.

Fastow choked back tears when he admitted lying to his wife, Lea, about money they got from one of his deals, a lie that forced her to plead guilty to tax fraud and serve one year in prison.

Ken Lay's lawyer was not impressed.

MIKE RAMSEY, KEN LAY'S ATTY.: He involved his wife, his children, his religion, everything else, and stealing, and now he's trying to lie his way out of it. It's just a pitiful situation. Not one of nature's noble creatures.

HUNTINGTON: Ramsey says he'll attack Fastow on the stand for the crimes which he has already pleaded guilty, stealing nearly $20 million from one of the partnerships he created, ostensibly to bolster Enron's earnings. The defense hopes to cast Fastow as a rogue thief, whose admitted crimes caused Enron to collapse.

(END VIDEOTAPE)

HUNTINGTON: Now defense attorneys are also going to focus on the fact that Andy Fastow cut a deal with the government, and they're going to try to get the jury to believe that the reason Fastow is pointing the finger to Lay and Skilling is that he needed to save his own skin -- Miles.

M. O'BRIEN: All right, Chris Huntington, thank you very much.

(WEATHER REPORT)

S. O'BRIEN: Dana reeve leaves a legacy of love and caring, and dogged determination, frankly, to help people with paralysis. She had her victories, and defeats, too. But the scripting of her legacy isn't over yet.

CNN's John Roberts has our story.

(BEGIN VIDEOTAPE) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: And I thank the Congress for doubling the funding of the National Institutes of Health.

JOHN ROBERTS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): She was the image of grace and courage and a powerful force on Capitol Hill. For nine years, Dana Reeve was her husband's constant companion, his tireless support system as he twisted arms in Congress. Just two weeks after Christopher's death, she became the symbol of his strength and spirit, signing on to John Kerry's presidential campaign.

DANA REEVE, DECEASED: And I am here today because John Kerry, like Christopher Reeve, believes in keeping our hope alive.

SEN. JOHN KERRY (D), MASSACHUSETTS: I will never forget the grace and the strength that she showed that day, and even a glow that she exuded in her love for Chris and her passion about the issue.

ROBERTS: But her campaign went beyond partisan politics. She faced down reluctant lawmakers and built bridges across party lines.

SEN. ARLEN SPECTER (R), PENNSYLVANIA: Oh, she was overwhelming. She looked like a movie star. She spoke eloquently and was a very effective advocate.

ROBERTS: Spinal injury, paralysis and stem cell research were her causes. It was her story, her determination some members of Congress say, that helped lead House members to defy the threat of a presidential veto and pass a bill that would expand funding for embryonic stem cell research.

SEN. TOM HARKIN (D), IOWA: If it hadn't been for her, we would not have had the number of signatures on the stem cell bill that we had. I'm absolutely convinced of that.

ROBERTS: Her dual tragedy, losing her husband, only to be diagnosed with lung cancer, had a special resonance with lawmakers who face their own mortality. Arlen Specter recently battled cancer.

SPECTER: President Nixon declared war on cancer in 1970. Had we devoted the resources to that war, which we devote to other wars, perhaps Dana Reeve's life could have been saved, perhaps Arlen Specter wouldn't have gotten Hodgkin's. We need to utilize federal funding on stem cell research that could have cured Superman, could have cured Christopher Reeve from his spinal cord injury.

ROBERTS: But for all the political victories Dana and Christopher Reeve had, there were also setbacks. The Senate has yet to pass the stem cell bill. And just last month in a cost-saving measure, the White House eliminated all federal funding for the Christopher Reeve Paralysis Foundation. Senator Tom Harkin, a personal friend, told Dana's caregivers on Friday to pass along a promise.

HARKIN: I'd love to talk to her again, but if I can't, just whisper one thing in her ear for me, tell her that we are going to put that money back. I guarantee it.

(END VIDEOTAPE)

S. O'BRIEN: John Roberts story was first reported last night on "PAULA ZAHN NOW," which airs weeknights at 8:00 p.m. Eastern Time.

The death of Dana Reeve, a woman who never smoked, is focusing attention on lung cancer. So be sure to join us in our 9:00 Eastern hour when we take a look at this killer disease. Lance Armstrong, cancer survivor, of course, and friend of Dana Reeve, along with a medical expert. If you have any questions, you can e-mail us as CNN.com, or AOL Instant Message us, "CNN AM." We're going to answer all of your questions in that hour -- Miles.

M. O'BRIEN: Coming up, the hunt for a fugitive. He's second only to Osama bin Laden on the FBI's most wanted list, but authorities hope you can find him, thanks to some new evidence.

S. O'BRIEN: Also a pretty big headache for baseball slugger Barry Bonds this morning. There's A new book out, and it details the most damaging evidence yet of his alleged steroid use.

M. O'BRIEN: And talk about headaches. Remember this cheerleader? A tumble almost broke her neck, but Christy Yamaoka (ph) remained cheery, shall we say.

S. O'BRIEN: Or cheering!

M. O'BRIEN: Cheering. We'll hear from her ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(MARKET REPORT)

M. O'BRIEN: Did jealousy drive Barry Bonds to steroids? Coming up, some startling claims in a new book about the sluggers alleged steroid use. And later, the global hunt for one of the FBI's most wanted.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Osama bin Laden, obviously, rightfully number one, but I think James "Whitey" Bulger rightfully number two.

(END VIDEO CLIP)

M. O'BRIEN: "Whitey" Bulger, you might not know the name or the face if you're not from Boston, but the FBI would like your help in finding one of the most wanted men in America.

Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: The mysterious disappearance of a Boston mob kingpin back in the news this morning. Some old surveillance tapes have surfaced which shows the infamous James "Whitey" Bulger. The south Boston organized crime kingpin has been on the lam for years. The hope is the tapes may give frustrated investigators the break they have been hoping for, for quite some time.

AMERICAN MORNING's Dan Lothian with our story.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): You may not recognize his face, you may not even know his name, but 76-year-old James "Whitey" Bulger appears next to America's worst enemy on the FBI's 10 most wanted list.

MICHAEL SULLIVAN, U.S. ATTY.: Osama bin Laden, obviously, rightfully number one, but I think James "Whitey" Bulger rightfully number two. It's because of the horrific crimes he committed over a long period of time, the numbers of families that have been destroyed.

LOTHIAN: "Whitey," as he's called, is seen in these 25-year-old surveillance videos just released by the U.S. attorney's office. A notorious leader of south Boston's Irish Mafia charged with 19 counts of murder, and various other crimes, from distortion to distributing drugs.

HOWIE CARR, RADIO TALK SHOW HOST: Where is Whitey's hat?

LOTHIAN: Boston talk radio host and newspaper columnist Howie Carr started covering Bulger as a young reporter about the time the surveillance videos were shot.

CARR: There really was a reign of terror in Boston for, I don't know, maybe 15, 20 years, where Whitey Bulger operated with impunity; nobody could do anything about him.

LOTHIAN: Snitches seemed to disappear. Intimidation helped him force a code of silence.

Carr says even reporters who nosed around mobster's south Boston headquarters were threatened by his gang.

CARR: The guy said, you tell Howie if he ever comes here, we have a dumpster out back waiting for him. It'll be another Robin Benedict. She was this prostitute who was chopped up by an infatuated professor.

LOTHIAN (on camera): But everything changed 11 years ago. Bulger, who was also an FBI informant, was tipped off by his handler that he was about to be indicted. So he grabbed the girlfriend, packed up his car, and vanished.

(voice-over): The hunt for Whitey has spanned the globe. A joint Bulger task force of 11 full-time FBI agents, state police and corrections officers has followed up leads in dozens of countries. His most wanted poster is printed in at least six languages. The last credible sighting was more than three years ago in London.

KEN KAISER, FBI SPECIAL AGENT: I can't remember as much money and manpower devoted throughout the world looking for one individual as in this case.

LOTHIAN: Eclipsed only by Osama bin Laden. How has Bulger managed to evade such a wide net for so long?

SULLIVAN: I think he prepared for a long period of time to be on the run.

LOTHIAN: Specifically a global network of bank safety deposit boxes, stashed with cash, passports and other items to help him disappear. The Bulger task force hopes the release of these old videotapes will help jog the public's memory.

KAISER: There's potentially some things they may recognize by the way he moves, or by the way he holds his hands or by the way he walks down the street.

LOTHIAN: The 76-year-old, an avid reader, is believed to be on the run with longtime girlfriend 54-year-old Catherine Greig.

CARR: Now the first thing I want to talk about today...

LOTHIAN: Howie Carr, the talk show host, has also authored a new book on Whitey, and his brother, William Bulger, the once powerful state politician and former president of the University of Massachusetts. He writes about mistakes made by police, corruption and a mobster's madness. An intriguing case with a lot of loose ends.

CARR: It's an ongoing story. The final chapter has yet to be written, and I hope I'll be around to write the final chapter.

LOTHIAN: Dan Lothian, CNN, Boston.

(END VIDEOTAPE)

S. O'BRIEN: Cannot make that story up.

Charges have been filed in the police shooting of an unarmed Iraq vet, war veteran. The victim's family, though, not happy with those charges. We're going to talk with the D.A. in that case. And then later, we'll talk about the struggle to recover in New Orleans.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm willing to roll up my sleeves and get to work. And all we ask is that the federal government would send in the money that we're promised.

(END VIDEO CLIP)

M. O'BRIEN: Is the federal government failing to deliver on one of its biggest promises to New Orleans businesses? We've got a live report just ahead on AMERICAN MORNING. We're back in just a moment. (COMMERCIAL BREAK)

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