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American Morning

Holy City Bombings; Bodies Found; DeLay Wins Primary; Enron Trial

Aired March 08, 2006 - 06:00   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning, everybody. Welcome. I'm Soledad O'Brien.
MILES O'BRIEN, CNN ANCHOR: And I'm Miles O'Brien.

Angry protests in India this morning in the wake of the deadly bomb attacks. The entire country is on high alert, extra security. We'll take you there live.

Plus, a grizzly discovery in Iraq, 18 murdered men found in a bus in the latest round of attacks. We are live in Baghdad.

S. O'BRIEN: A stronger-than-expected primary win for Congressman Tom DeLay, but an even tougher battle is still ahead. We'll explain.

M. O'BRIEN: Another legend loss. Gordon Parks, the groundbreaking director and the man behind "Shaft," has died.

S. O'BRIEN: And battling Barry Bonds. Allegations have been leveled now again against one of baseball's biggest stars. We'll tell you what those are ahead.

M. O'BRIEN: We begin this morning in India at the site of those deadly explosions in the holy city of Varanasi. At least 14 people were killed in Tuesday's attacks. This morning, police are on high alert. Varanasi is about 450 miles southeast of the capital of New Delhi.

CNN's Satinder Bindra live on the scene of the explosions. He joins us now via videophone.

Satinder, what's going on there now?

SATINDER BINDRA, CNN CORRESPONDENT: Miles, despite what happened here yesterday, thousands of pilgrims continue to throng to this temple. They are coming here to pay their respects. Last night there was another large crowd here when a bomb went off. And police say this bomb was placed inside a pressure cooker. At the moment, investigations are continuing, and police not yet pointing the finger of blame at any group.

Now 10 minutes after this blast went off, Miles, there were two other blasts at a rail station in this holy city. And police say all the three blasts were designed to engineer a maximum possible damage and cause a maximum possible chaos. In the past, when religious institutions have been attacked here in India, Miles, there have been religious riots, so authorities are obviously very concerned. The Indian prime minister is appealing for calm. And here in Varanasi, all the schools and colleges have been shut down. Security has also been stepped up at all religious institutions across north India.

Miles, back to you.

M. O'BRIEN: Satinder, just give us a little bit of the back story here, the context for these explosions.

BINDRA: Well, Miles, nobody really knows which group did it. But in the past there has been a lot of such violence, violence aimed at soft targets. Police and other sources describe this as terrorism. A temple was attacked in 2004. Then in central India there was another attack in 2005, in July of 2005. And now another attack, yet again, at a religious institution.

When you talk to the people here, they say this is clearly terrorism. This is an effort by some people to try to sow sort of communal disharmony or try to get or try to create some trouble between Hindus and Muslims. So far, the situation inside this holy city is calm. And there's a large police presence, even now, just outside this temple -- Miles.

M. O'BRIEN: Satinder Bindra in Varanasi, back with you a little later as this story unfolds, thank you -- Soledad.

S. O'BRIEN: A gruesome discovery in Iraq, a sign of the kind of violence that is tearing the country apart. The bodies of 18 men strangled have been found in western Baghdad.

Let's get right to Aneesh Raman. He's live for us in Baghdad this morning.

Aneesh, good morning. What happened?

ANEESH RAMAN, CNN INTERNATIONAL CORRESPONDENT: Soledad, Iraqi police say, as you mentioned, all 18 men were strangled to death. Their arms were also bound behind their back. Discovered the bodies late Tuesday in a western part of Baghdad. All of them were aboard a mini bus. Their identities, as of now, are still unknown. But we have seen increasing discoveries like this in the past few months as sectarian tensions here continue to rise.

Meantime, in the capital today, at least three attacks on Iraqi police. The deadliest in the northern part of Baghdad, an Iraqi police convoy coming under attack, a roadside bomb that killed at least two officers, wounded some eight other people. Other roadside bombs detonating at other Iraqi police patrols throughout the day. In all, some three officers were killed -- Soledad.

S. O'BRIEN: Update, if you can, Aneesh, about the political situation. There's been pressure on the prime minister to step down, to resign. Is there any indication that he might do that? RAMAN: None. We heard from Ibrahim al-Jaafari yesterday. He says that all of this mounting pressure for him to step down is personal, it is not about a unity government. We hear the opposite from Kurdish, Sunni and secular leaders who do not want him to remain as prime minister.

So this is a brewing stalemate that seems unresolved at the moment, unlikely to be resolved in the days ahead. This, as Iraq's Parliament is struggling to convene for the first time as early as Sunday -- Soledad.

S. O'BRIEN: Aneesh Raman with a lot of disturbing news out of Baghdad for us this morning.

Aneesh, thank you -- Miles.

M. O'BRIEN: Congressman Tom DeLay holds off a challenge from within his own party, but now an even bigger battle awaits him in the general election.

AMERICAN MORNING's Bob Franken live this morning for us from Houston.

Good morning -- Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.

And of course it was only a primary, but with all the unfavorable attention Tom DeLay has gotten, there is a very close watch on whether he would falter in the primary. He didn't. He got over 60 percent of the vote.

(BEGIN VIDEOTAPE)

FRANKEN (voice-over): Tom DeLay voted, but he did not hang around for the results. Confident of victory, even with all the ethical questions swirling around him, he headed for Washington for congressional business, also for another fundraiser.

REP. TOM DELAY(R), TEXAS: Well, since I'm going to be in town, why not raise some more money?

FRANKEN: DeLay was having the last laugh on his Republican opponents, leaving his main challenger almost sputtering about the fundraiser.

UNIDENTIFIED MALE: It's terribly inappropriate and callous.

FRANKEN: Many Democratic strategists badly wanted Tom DeLay to win so they could try to make him their villainous GOP poster boy in the general election.

But Nick Lampson, the man who will run against DeLay in November, is treading very carefully.

NICK LAMPSON (D), GENERAL ELECTION OPPONENT: I have been an independent voice. I have been one who did not make my constituents embarrassed about any of my service or activities. And I want to concentrate on those.

FRANKEN: Others Democrats will relentlessly focus on charges that DeLay did embarrass his constituents.

But DeLay warns they do so at their own peril.

DELAY: It's having a great effect. It is having a positive effect, quite frankly. The backlash from my constituents has been amazing.

(END VIDEOTAPE)

FRANKEN: But for now, DeLay has won his first skirmish quite handily, Miles. Of course the Democrats believe they have a chance to get rid of a person they have been fighting for over 20 years -- Miles.

M. O'BRIEN: Bob, I guess a little bit of irony here, Nick Lampson lost his seat because of that big redistricting plan that of course Tom DeLay championed and which was at the root of some of his difficulties, to say the least. What -- how does that play into the race?

FRANKEN: Well, it's certainly one of the reasons that Nick Lampson might have for going after Tom DeLay. But Lampson has decided he's going to say it's not about Tom DeLay, it's about Nick Lampson. And you can believe that if you want.

M. O'BRIEN: All right, Bob Franken, thank you very much.

Bob is in Houston for us this morning -- Soledad.

S. O'BRIEN: Let's talk about the Enron trial, shall we? Enron's one-time chief financial officer goes again this morning, adding a little intrigue to the trial of two former executives. Andrew Fastow testified that he lied to his wife about his shady financial dealings but that the company executives knew exactly what he was up to.

CNN's Chris Huntington has our story this morning.

(BEGIN VIDEOTAPE)

CHRIS HUNTINGTON, CNN CORRESPONDENT (on camera): Andy Fastow will be back on the stand today, another two hours of direct examination by federal prosecutor John Hueston. Then it's time for the defense attorneys for cross-examination.

But they will have their work cut out for them, because Fastow has already delivered very clear and damaging testimony against Jeff Skilling and Ken Lay. Specifically, that the off balance sheet partnerships that Fastow created and ran were completely approved by senior management and by the board of directors.

The one avenue that the defense attorneys have to pursue is Fastow's admission that he enriched himself behind the backs of senior management. That he, in essence, dipped into the cookie jar. And that's where the defense attorneys are going to focus. They are going to try to paint the picture to the jury that Andy Fastow was a thief, plain and simple, and that he was the only thing wrong with Enron. That testimony begins in about three-and-a-half hours.

Chris Huntington, CNN, Houston.

(END VIDEOTAPE)

M. O'BRIEN: In California, a sheriff's deputy is expected to surrender to police today to face charges in the shooting of an unarmed Iraq war veteran. You'll remember the tape, there it is, an Air Force security officer, Elio Carrion, shot three times as he tried to stand up after a police chase. He had been a passenger in the car. Witnesses say Carrion was told to get up by the deputy. Prosecutors say this tape is the key to the case.

(BEGIN VIDEO CLIP)

MICHAEL RAMOS, DIST. ATTY., SAN BERNARDINO CO.: We listened to that over and over. I can't tell you the times we listened to it. And with the audio clarification, there was not once did anybody in the D.A.'s office here Deputy Webb say don't get up. We all heard get up.

(END VIDEO CLIP)

M. O'BRIEN: That's what he said over and over, get up. He got up and he got shot. Elio Carrion is still recovering from the shooting.

Meanwhile, the San Bernardino sheriff's deputy, his name is Ivory Webb, faces several charges now, including attempted voluntary manslaughter.

We will talk live with the district attorney there in the next hour of AMERICAN MORNING.

Time for a check of the forecast.

Good morning -- Chad.

CHAD MYERS, CNN METEOROLOGIST: And good morning, Miles.

(WEATHER REPORT)

S. O'BRIEN: Chad, you know. I know he adds it on the end because I love to hear that.

Thank you, Chad, appreciate it.

MYERS: You're welcome.

S. O'BRIEN: Have you seen this thing? It is a furry lobster. Take a look. A furry lobster was actually found very deep in the waters of the South Pacific. It's only about six inches long. I know, ooh, right? Silky blond fur. It's blind. Lives 7,500 feet down, 900 miles south of Easter Island. Scientists say there is nothing else like it, so they've just created basically a new scientific category for it. They call it the Kiwa hirsuta.

M. O'BRIEN: Exactly what I would have called it. What is the scale on this?

S. O'BRIEN: What's a...

M. O'BRIEN: How big is that thing, do you know?

S. O'BRIEN: It's six inches. It's only six inches long.

M. O'BRIEN: Six inches across there?

S. O'BRIEN: Yes, it's a little teeny weenie furry blond lobster.

M. O'BRIEN: I wonder if it tastes good? No, I guess we're not eating it.

S. O'BRIEN: No.

M. O'BRIEN: All right.

Do you suffer from allergies? A renewed Patriot Act could make it harder for you to get your medicine, believe it or not.

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

M. O'BRIEN: And remember that cheerleader, the most courageous cheerleader we've ever seen. She does the fight song, the pep song.

S. O'BRIEN: I love her. Yes.

M. O'BRIEN: And she's being, you know, sent off with a hurt neck and a scary fall.

S. O'BRIEN: She said she didn't want any to distract from the game. She wanted them to go ahead and win, even as she's being taken out on a stretcher.

M. O'BRIEN: Wow! Well we have good news to report, she's doing well. We'll give you an update.

(COMMERCIAL BREAK)

S. O'BRIEN: In the wake of that shocking death of Dana Reeve, we've decided to dedicate our 9:00 a.m. hour of AMERICAN MORNING to understanding cancer and the risks all of us face. Lance Armstrong is going to join us. He's among our special guests.

We're going to take your questions. You can e-mail us at CNN.com/am or AOL instant message us, CNN AM, of course, is that message code word right there. All that is ahead. We start at 9:00 a.m. Eastern Time right here on AMERICAN MORNING. That's ahead.

Carol, though, before that, has a look at some of the other stories making news.

Carol, good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you.

The future of Iran's nuclear program could soon be in the hands of the U.N. Security Council. The U.S. issued a statement. This happened just a short time ago. It says the Security Council will likely demand Iran stop its nuclear research or face consequences. The announcement comes as the United Nations Atomic Agency is wrapping up its meeting in Vienna. So far there's been no breakthrough deal with Iran.

President Bush returning to the Gulf Coast. It is his 10th trip to that region since Katrina hit. The visit comes shortly after the White House announced an extension of unemployment benefits for hurricane victims and boosted federal funding for debris removal. The president will stop in New Orleans and Gulfport, Mississippi.

Congress giving its final approval to the Patriot Act. The House voted last night to renew the measure. It passed the Senate last week. President Bush has promised his signature, and he's likely to do that today or tomorrow. The Patriot Act is set to expire on Friday, so it will come before then.

Some U.S. troops are playing an even greater role in the war on terror. According to "The New York Times," small teams of elite special operation troops are being placed in U.S. embassies in unstable parts of the world. Their mission: to gather intelligence. But the move is reportedly drawing opposition from agencies, such as the CIA, which sees it as an invasion of their turf.

An emergency landing on a highway. Take a look. A single engine plane coming down on Interstate 75 in southern Michigan. Two people onboard made it out safely. The Federal Aviation Administration says it's still looking into what happened, but one of the plane's wings appears to be damaged. It's amazing it didn't hit any -- it landed in the median, didn't hit any cars.

Barry Bonds and more allegations of steroid use. Two "San Francisco Chronicle" reporters claimed Bonds used a wide range of performance enhancing drugs for at least five seasons beginning back in 1998. An excerpt from the book "Game of Shadows" appears in this week's issue of "Sports Illustrated." And apparently he did that -- allegedly he did that because he was jealous of Mark McGwire's home run hitting, so supposedly he started taking steroids to match him.

And the cheerleader that wouldn't quit is expected to make a full recovery. The Southern Illinois University student was released from the hospital on Tuesday. There she is. She suffered a concussion and a chipped neck vertebrae when she fell about 15 feet from that pyramid there during a cheering routine. But what caught our eye was that she kept on cheering. Let's see it, because it was there, go team, get rebound, hit a three -- yes.

That's amazing, isn't it -- Chad?

MYERS: Yes, it really is.

And you know what, there's a -- the Missouri Valley Conference actually came out with a ban on anyone taller than the two formation. Cheerleaders may not be launched or tossed. They may not take part in formations higher than two levels during the tournament. So they are actually making some new rules for her, trying to let -- not let anyone else have this happen to her.

But congratulations to her. A chipped vertebrae not a minor thing. But she got there and she's out and she's released and she's in great shape.

(WEATHER REPORT)

Back to you guys.

S. O'BRIEN: All right, Chad, thank you.

M. O'BRIEN: Hey, it's red day here, guys. And when you're thinking of red, you think of GM these days because they're seeing a lot of red.

CARRIE LEE, CNN CORRESPONDENT: No kidding.

M. O'BRIEN: And bye-bye pensions, huh?

LEE: Bye-bye pensions.

M. O'BRIEN: This is Carrie Lee, by the way.

LEE: Well, they're not getting rid of them altogether, but for GM employees hired before 2001, traditional pension benefits are being cut. For people hired after 2001, GM, like a lot of other companies, are switching to defined contribution plans, 401(k)s. GM is now going to contribute 4 percent of annual salary. GM says it expects the plan to save $1.6 billion this year. And that is money GM could really use.

In November, GM reached a deal with the UAW, United Autoworkers Union, of course, to cut health benefits for hourly retirees. GM shares, last year, down 50 percent. So if you invest in the 401(k), you might want to be careful about putting all your money into GM stock.

(CROSSTALK)

S. O'BRIEN: Yes, you might want to be picking other...

LEE: As is true with any type of investing of course.

S. O'BRIEN: Right. But may be really, really, really true with GM right now. LEE: Yes, GM shares up a little bit yesterday.

Intel, new wave of chips coming out later this year, third quarter 2006. They have three new chips coming out. They are called core microarchitecture chips. Basically putting two chips onto one, one for servers, one for PCs, one for mobile. And then next year, they are going even beyond that with the quadcore (ph), which is basically four in one.

So the same story with chips, you keep getting smaller, more powerful, saving electricity, but trying to catch up to their big competitor, AMD.

Intel also has something out called the Mobile PC. Microsoft's new Origami software is going to be used in this. Take a look at this. Here's the first look of the Mobile PC. And then there's...

S. O'BRIEN: It looks weird.

LEE: It does look a little bit weird. And then it, basically, the screen slides across, see.

S. O'BRIEN: Yes.

LEE: And that's where your keyboard and your functions are, you're, you know, up, down,...

S. O'BRIEN: How big is that, do you know?

LEE: ... things like that. It's pretty small. It's pretty small.

M. O'BRIEN: About the size of the lobster, about six inches, yes.

S. O'BRIEN: But is it like much bigger than a BlackBerry, somewhere in between?

LEE: I think it's you know maybe about the same size, more or less.

S. O'BRIEN: That's kind of neat.

LEE: I'm not exactly sure of the dimensions.

S. O'BRIEN: That's kind of neat.

LEE: But, yes, video, music, games, Internet, all of that stuff. So another mobile device, but I knew you guys weren't going to give up your BlackBerrys anytime soon, right?

S. O'BRIEN: Another upgrade we have to do. Well, the courts might decide that for us, Carrie Lee, and then we'll be talking about that.

M. O'BRIEN: Yes. LEE: Yes, so there you go.

S. O'BRIEN: Thanks, Carrie, appreciate it.

LEE: OK.

S. O'BRIEN: Carol has got a look at what's ahead in "Morning Coffee" this morning.

Hello. Good morning.

COSTELLO: Good morning.

You know springtime is coming, only 12 days away now, so allergies may be a problem. Well, it may be a problem treating them because of the Patriot Act. Yes, the Patriot Act could end up affecting you directly and your allergies. That's next in "Morning Coffee."

(COMMERCIAL BREAK)

S. O'BRIEN: That was a nice shot of the skyline as the sun is just beginning to come up over Central Park.

COSTELLO: The sun is coming up earlier and you know what that means? Or is it later? No, I don't know.

S. O'BRIEN: No, earlier, earlier.

M. O'BRIEN: It's coming up earlier, but then there's -- yes, we'll spring forward and then it'll be later.

S. O'BRIEN: And it'll all go away.

M. O'BRIEN: Yes, it'll all go away, so enjoy it.

COSTELLO: So whatever it means, it means spring is a coming.

M. O'BRIEN: Enjoy it. Yes.

S. O'BRIEN: Enjoy it now.

M. O'BRIEN: That's true.

S. O'BRIEN: It's all going to change.

M. O'BRIEN: So the days are getting longer.

COSTELLO: Talking about spring, allergy sufferers. Well, too bad allergy sufferers, you may be the first to notice new provisions in the just passed Patriot Act. That's because tough new rules aimed at stopping the spread of meth labs across the country included in the act.

The key ingredient for meth is also found in over-the-counter cold and allergy medicines. A provision in the Patriot Act calls for limits on the number of pills you can buy at one time. One hundred twenty a day is the limit, although that seems like a lot of pills, doesn't it?

M. O'BRIEN: That should cover me on a bad allergy day.

S. O'BRIEN: But it is...

COSTELLO: Yes.

S. O'BRIEN: But I've got to tell you, try to buy Sudafed 24 hours, which is the only thing that works for my allergies, try to buy that in any drugstore.

M. O'BRIEN: You get busted, yes.

S. O'BRIEN: You have to literally get someone with a key to open it for you or come back if the pharmacy is not open. It is a pain.

COSTELLO: That's right. So the rest of the country will experience that.

S. O'BRIEN: I hear you, sister. Yes.

COSTELLO: That's right. Starting at the end of September, you will need to show your I.D. to buy even one pill, one little Sudafed.

M. O'BRIEN: So what does the Patriot Act have to do with the meth problem and Sudafed?

COSTELLO: You'll have to talk to Congress.

M. O'BRIEN: All right. I'm just -- all right, sorry I asked.

COSTELLO: Let's talk about Alan Greenspan for a bit, because, boy, did he score a book deal.

S. O'BRIEN: You knew that was going to happen.

COSTELLO: I know.

S. O'BRIEN: My God!

COSTELLO: Well get this, he's going to get $8.5 million.

S. O'BRIEN: Wow!

COSTELLO: Penguin Press. That's the second largest advance ever for a nonfiction book. You know who was first? Come on.

S. O'BRIEN: Hillary, eight (ph).

COSTELLO: Bill, 12.

M. O'BRIEN: I would say that's a rational exuberance on the part of Penguin, wouldn't you?

S. O'BRIEN: No.

COSTELLO: Well, yes, because you know how many books they'd have to sell just to cover the advance?

M. O'BRIEN: Exactly.

S. O'BRIEN: Can I tell you how many people are going to buy his book?

M. O'BRIEN: What a snoozer, come on.

S. O'BRIEN: And when we sit down with Alan Greenspan...

M. O'BRIEN: You won't understand a thing of it. You won't understand a single word.

COSTELLO: He has a ghostwriter helping him, though.

S. O'BRIEN: No, someone help him write it and he'll explain it, Alan Greenspan explains the markets to you.

COSTELLO: Yes, kind of. But, no, Penguin Press will have to sell 600,000 books just to cover the advance.

S. O'BRIEN: Easily. Easily.

COSTELLO: That's without any profit.

M. O'BRIEN: Really?

COSTELLO: That's just to...

M. O'BRIEN: Want to put...

(CROSSTALK)

M. O'BRIEN: Five dollars on that one.

S. O'BRIEN: Yes, let's make a bet.

M. O'BRIEN: You owe me five from yesterday.

S. O'BRIEN: I know.

M. O'BRIEN: Yes.

S. O'BRIEN: Double or nothing.

COSTELLO: Well let's end on a rather bizarre story,...

M. O'BRIEN: Let's.

COSTELLO: ... because sometimes you have to ask yourself just how slim are the pickings for single women out there?

S. O'BRIEN: Very. COSTELLO: Yes, apparently so.

M. O'BRIEN: What are you in the hunt?

COSTELLO: This is from...

S. O'BRIEN: No.

COSTELLO: This is from...

M. O'BRIEN: How do you know?

S. O'BRIEN: I have a lot of single friends.

M. O'BRIEN: OK.

S. O'BRIEN: Come on, right, Carol, we know a lot of single girls.

COSTELLO: This is from Portsmouth, New Hampshire. "Portsmouth" magazine is running their annual eligible bachelor issue, and they chose the very available Jared Hogan. Look, he's the cover boy. Problem is Hogan may not be the best catch. It seems the magazine failed to mention his lengthy arrest record for...

S. O'BRIEN: Then there's that.

COSTELLO: ... -- I know -- for, among other things, criminal mischief, driving while intoxicated and reckless conduct. But other than that,...

S. O'BRIEN: He is handsome.

COSTELLO: Right.

M. O'BRIEN: A lot of women like that, though.

S. O'BRIEN: This is what women...

M. O'BRIEN: Right?

S. O'BRIEN: This is the problem.

M. O'BRIEN: Yes.

S. O'BRIEN: If you're our age and you're not married, like, OK, you get Jared. He's got a criminal record. Come on.

COSTELLO: He just needs some counseling.

M. O'BRIEN: There you go, you can change him, women, trust me.

COSTELLO: No, you can't.

S. O'BRIEN: Please.

COSTELLO: We know better than that.

S. O'BRIEN: Please.

Got a look at the morning's top stories straight ahead this morning. Also, if you think a Starbucks on every corner is a good thing,...

COSTELLO: Yes.

S. O'BRIEN: ... boy, do we have a lot of good news for you.

COSTELLO: Yes.

S. O'BRIEN: Carol is going to be thrilled with this story.

And then more on the stunning new details of Barry Bonds' alleged steroid use and why jealousy allegedly drove the slugger to cheat. We'll explain all that just ahead. Stay with us.

(COMMERCIAL BREAK)

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