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American Morning

East Coast Storms Cause Flash Floods

Aired June 26, 2006 - 08:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Good morning, welcome, everybody. I'm Soledad O'Brien.
MILES O'BRIEN, CNN ANCHOR, AMERICAN MORNING: And I'm Miles O'Brien. Alina Cho is in for Carol Costello today with a look at headlines.

Good morning, Alina.

ALINA CHO, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning to you, Miles, Soledad. Good morning to everyone.

It is a soggy morning on the East Coast, flash flood warnings in effect from Pennsylvania to Delaware. In Seaford, Delaware, eight inches of rain prompted evacuations there. Storms knocked down trees and power lines. Dozens of cars are still stuck in waist-deep waters. Luckily, no major injuries have been reported.

Out West, a different kind of problem. That 4200-acre wildfire near Sedona, Arizona, is now about 50 percent contained. Hundreds of homes are still evacuated. Fire officials say they should have it fully contained by Wednesday.

New pictures just in from southwestern Utah. Some 300 firefighters are trying to get Highway 9 reopened. A 4800-acre fire is threatening dozens of homes there.

Gas prices are dipping. The national average is now $2.89 a gallon. That's about 4.5 cents less than two weeks ago, but remember last year? Gas prices on this day in 2005 were 68 cents lower.

Free speech versus patriotism: The U.S. Senate begins debate today on a constitutional amendment that would ban flag-burning. A vote could come later this week. The House approved a similar amendment last year.

And take a look at that. The walls came tumbling down at Methodist Hospital in Houston. They detonated an old professional building at the hospital to clear the way for a new out-patient facility. As for who got to do the honors, well, the person who worked there the longest pushed the button that blew up the building.

And have you seen this video out of Kentucky? The manager of the Minor League Ashfield Tourists was ejected from a game last night. But take a look. He didn't go quietly. Joe Mykulik (ph) ranted and raved before pulling up second base, throwing a couple of bats and even covering home plate with dirt. Once he cooled off, Mykulik (ph) admitted well, he may deserve a fine. As for a suspension, he said "I cleaned off their base. They should tip me."

I don't know about that. This is a guy who just may, may, benefit from a little anger management training. What do you think there, Miles?

M. O'BRIEN: I think we give him a Major League contract! That guy's good, that guy's good. Reminds me of Earl Weaver in his heyday when he used to have some fun there in Baltimore.

CHO: Sort of the anti-Miles, I think.

S. O'BRIEN: That's exactly what I was thinking. Alina, you look great. Good to have you there. Good to see you.

Cue the music, please.

MALE SINGER: If I had a million dollars ...

M. O'BRIEN: Ah, yes. If I had $44 billion, I would give it to my friend, Bill. So might the lyrics go, if Warren Buffett sat in with the Bare Naked Ladies. Unlikely he's a fan of them, however. Clearly the Bill & Melinda Gates Foundation is singing Buffet's praises, however. "Fortune" magazine Editor-at-Large Carol Loomis, had an exclusive interview with Warren Buffet. She is a friend and a board member of a foundation associated with the Buffet family. Andy Serwer of "Fortune" magazine, as well, here to give her real zingers.

(LAUGHTER)

ANDY SERWER, CNN ANCHOR, AMERICAN MORNING: That's not what I'm going to do.

CAROL LOOMIS, EDITOR-AT-LARGE, "FORTUNE": That's right.

M. O'BRIEN: By the way, let's go through it real quickly. What $37 billion, which is roughly what it could be, would equate to, I know there are caveats to that, we're going to talk about that in a second. But just for the sake of fun here, let's do this.

LOOMIS: OK.

M. O'BRIEN: Let's do this, $37 billion. The GDP of Kenya, twice the NASA budget with spare change, and also three times the amount of money distributed by the United Nations. Now, let's get real about this. When we say $37 billion, could be more, right?

LOOMIS: Oh, could be a lot more.

M. O'BRIEN: Tell us about that.

LOOMIS: Well, it's going to depend on the price of Berkshire stock, going forward. And if the price of Berkshire stock goes up 6 percent a year, that will more than offset the fact that the number of shares are declining. So the amount of money will inevitably grow.

M. O'BRIEN: Big money. All right. Of course, the thing most people think about, the kids, right? You know? Because they're, they're set, but they're not set like they thought they were going to be set. This is interesting. In your interview, I found this fascinating.

He said this: "Our kids are great. I would say it's neither right nor rational to be flooding them with money. In fact, they have had a gigantic head start in a society that aspires to be a meritocracy. Dynastic mega-wealth would further tip the playing field that we ought to be trying instead to level."

Does he really mean that? That's really very capitalist of his nature to say that, it's interesting.

LOOMIS: He really means that. I've known him for four years, and he's been saying that since I knew him. He's always been tough on his kids in the sense that his daughter says, If I write him a $10 check, he cashes it!

M. O'BRIEN: He does not just keep it lying around.

LOOMIS: That's right.

M. O'BRIEN: Why not set up your own foundation, though? Because a lot of these things, foundations over the years, have been a part, about the ego of the rich person having their name perpetuated. In this case, unless they change the name, and they might announce it becomes the Gates/Buffet Foundation or something, I don't know.

LOOMIS: I don't know.

M. O'BRIEN: Unlikely?

LOOMIS: I doubt it.

M. O'BRIEN: So that's interesting that he -- that his name wouldn't be a part of this.

LOOMIS: Well, I think this was not an ego-driven decision, at all. I think he thought that the money would be at its best place if it went to the Buffet and Gates Foundation -- Buffet and Gates! I'm doing it, see?

M. O'BRIEN: See.

LOOMIS: The Bill & Melinda Foundation, and he just -- it really didn't matter to him. As a matter of fact, he has never been willing to give money to the building of buildings. He just won't do it. And so, I think that he would think that giving money to putting your name on a foundation was a little bit like building a building.

SERWER: Carol, why is it that he changed his mind? He famously has said for all these years, I'm not going to give away my money until after I'm deceased. What made him change his mind? LOOMIS: I think it was, above all, the death of his wife, sudden, tragic death of his wife, almost two years ago, July, 2004; and the fact that she was going to give away the money. They always assumed that he would die first, she'd be the philanthropist, she would scale up the Buffet Foundation and give away the money.

And then suddenly, he realized that plan wasn't going to work, and so he'd better be thinking -- rethinking whether what he wanted to do. And I think the more and more he thought, the more he thought it was time to move and do what he's now done.

SERWER: And you had a celebratory dinner last night with Warren Buffet and the Gates, in New York City. Can you tell us about that?

LOOMIS: Well, there were 18 of us, including all the spouses of people involved. And Bill Gates' father, and Melinda's parents, and all the Buffet children and their spouses.

SERWER: Wow.

LOOMIS: And --

SERWER: A lot of money in that room.

(LAUGHTER)

LOOMIS: So they went around the room and all the foundations -- as a matter of fact, there's an old rule, that the Buffets like, of having a one-conversation table. And so they quickly made it all 18 of us talking together, and they went around the room, and each of the five foundations described what they would be doing with the new money.

SERWER: Oh, that is fascinating.

LOOMIS: It really was extremely interesting. You felt quite inspired listening.

M. O'BRIEN: I should say. Who picked up the tab for dinner?

LOOMIS: I didn't ask about that. Somehow, I think it was Bill Gates, but I didn't ask.

M. O'BRIEN: I believe Andy Serwer is the only guy ever to buy Warren Buffett dinner

SERWER: I betcha Carol has as well.

M. O'BRIEN: In the course of reporting a story.

SERWER: I enjoyed the fact that I was able to buy him dinner that time, Carol.

LOOMIS: Well, that's good. I bought him lunch at the Time, Inc. cafeteria. That's really a big deal.

M. O'BRIEN: Big spender!

Let's talk about his kids, though, grown kids, obviously.

LOOMIS: Grown kids.

M. O'BRIEN: Obviously. They're still very well off, in spite of giving away this much money. There's a lot of money left over, right?

LOOMIS: I don't think we can feel too sorry for them. And as he said, he feels that you ought to give -- a very rich person ought to give his kids enough to do anything, but not enough so that they can do nothing. And he has said that for 20 years, and probably 40 years, and he still believes it.

M. O'BRIEN: Wow, true to his word. What an interesting guy.

LOOMIS: He is.

M. O'BRIEN: Some day when you have dinner, invite me along. I'd like to come and just listen.

SERWER: Bring your wallet, Miles.

M. O'BRIEN: I'll buy, how's that?

LOOMIS: OK.

M. O'BRIEN: Carol Loomis, good job on the story and thanks for sharing it with us.

LOOMIS: You're very welcome.

M. O'BRIEN: Carol Loomis and Andy Serwer. Carol's been there a few years longer than Andy.

SERWER: Yes, how many years, Carol.

M. O'BRIEN: Fifty-two years --

LOOMIS: Fifty-two years..

M. O'BRIEN: -- at "Fortune" magazine.

SERWER: Fifty-two years at "Fortune" magazine.

M. O'BRIEN: Congratulations.

SERWER: It's a good thing.

M. O'BRIEN: It's been a wonderful career. It's still going.

SERWER: Right.

M. O'BRIEN: Time for a check of the forecast. Chad Myers at the CNN Center.

(WEATHER FORECAST)

S. O'BRIEN: United Nations ambassadors, believe this number, it's crazy, racked up $18 million in parking fines over the years. Diplomatic immunity has made prosecution impossible. It's also made the whole issue kind of a joke. But one woman now is challenging the U.N.'s diplomatic immunity over a much more serious accusation. CNN's Senior U.N. Correspondent Richard Roth has the story for us.

(BEGIN VIDEOTAPE)

RICHARD ROTH, CNN U.N. CORRESPONDENT (voice over): An allegation of sexual harassment.

CYNTHIA BRZAK, U.N. EMPLOYEE: At end of the meeting, I got up to leave the room, and I was sexually assaulted .

ROTH: Cynthia Brzak says it happened at work. A familiar story, perhaps, but her employer, the United Nations; and the accused, the U.N.'s high commissioner for refugees, Ruud Lubbers.

In an unprecedented legal move, she's taking her case to the U.S. Supreme Court. Brzak says in 2003, she was groped inside the U.N. building in Geneva. Lubbers, the former Dutch prime minister, denies the charge. Last year he even demonstrated to reporters what he called a friendly gesture. She says it was much worse.

BRZAK: He thinks we don't know the difference between a friendly gesture and a blatantly humiliating, and disgusting sexual advance.

ROTH: An internal U.N. investigation concluded the refugees' chief did engage in sexual harassment, but all U.N. officials are protected from prosecution in any nation by diplomatic immunity. And Secretary General Kofi Annan decided the evidence was too weak to lift that immunity. So, Lubbers only got a warning. But after negative press, he was eventually forced to resign. Lubbers continues to insist his former employee is lying.

RUUD LUBERS, FMR. UNHCR CHIEF: They're spreading stories, which were -- that they made up, fabricated.

ROTH: With Lubbers out of the United Nations, this would normally be case closed, but Brzak wants the Supreme Court to strip away diplomatic immunity so U.N. officials linked to the case, including Kofi Annan, can face a civil lawsuit. She accuses of U.N., and its officials, including Kofi Annan, of racketeering for a retaliation campaign they allegedly waged against her.

EDWARD FLAHERTY, BRZAK'S ATTORNEY: The internal U.N. justice system is nowhere near fulfilling the minimum standards of due process that the U.S. Constitution requires. And of course, when people join the U.N., they have no idea they're giving up their right to sue.

ROTH: The United Nations declined to comment. Legal experts say the chances of the high court hearing the case are slim.

BRZAK: Diplomatic immunity must change, or the U.N. will not live up to its role.

ROTH: A role that recently has been tarnished by high-profile scandals. Richard Roth, CNN, United Nations.

(END VIDEOTAPE)

S. O'BRIEN: The Supreme Court's not expected to consider Cynthia Brzak's lawsuit until the next term begins, which is in October.

M. O'BRIEN: Coming up on the program, what's the priciest city in the world? We have a list and -- it's not New York. We'll tell you what it is.

S. O'BRIEN: Later this morning we'll talk to the kid who's behind one of the most successful children's programs ever. He's the voice of Go Diego in "Go, Diego, Go." That's ahead on AMERICAN MORNING. We're back in a moment.

(COMMERCIAL BREAK)

S. O'BRIEN: They call themselves the Granny Peace Brigade, and they're making the trek from New York City to Washington, D.C. to protest the war in Iraq. Their message, you can be heard no matter how old you are.

WOMEN SINGING: From the mountains, across the ocean ....

MARIE RUNYON, GRANNY PEACE BRIGADE: My name is Marie Runyon.

WOMEN SINGING: God bless, America

RUNYON: For 91 years, I've been talking. Sometimes loudly.

I said bring them home now!

All you need is a little something to upset you to know that you've got to do something about life, about letting things go on.

The fact that we're in our 70s, 80s, and 90s has nothing to do with the case. Anybody can protest.

We're marching to Washington, we want to bring them home!

VINNIE BURROWS, ACTRESS, ACTIVIST: Being a mother and a grandmother and a great grandmother, I'm going to say, listen to your granny, because I'm speaking to you as all of our other 17 other Grannies. We are saying, listen to our wisdom, listen to our experience, listen to our passion, and our desire to end the war, to bring our troops home now!

UNIDENTIFIED FEMALE: All right, let's go. Shall we? Is it 2:00?

UNIDENTIFIED FEMALE: Marie Runyon has been such an outspoken, wonderful, almost like a prototype that we would all like to become when we are 91. And she has just been outstanding. You know, she's legally blind, she's hard of hearing, she walks with two canes. Her feistiness is something that is really admirable, and we know how heart-felt she is, and how passionate.

RUNYON: I've never walked over this bridge.

Because of us, and our determination, and our strong feeling. We've got to keep on keeping on, ain't quitting.

(END VIDEOTAPE)

S. O'BRIEN: These grannies look familiar to you? You might remember them. Some were arrested last October for demonstrating in front of an Army recruiting station in New York City's Time Square.

Andy's going to be "Minding Your Business," right after a short break. We're back in a moment. Stay with us.

(COMMERCIAL BREAK)

M. O'BRIEN: Question is, the most expensive city in the world? The answer is, you know it?

SERWER: Yes, I do. You want me to tell it? Or you want to tell it?

M. O'BRIEN: You know it, it's Moscow. Moscow?

SERWER: Yes, Moscow.

M. O'BRIEN: Moscow, Russia.

SERWER: It's so cold there, it's expensive.

M. O'BRIEN: Maybe that's it, the heating bill. They take 200 things and put them in a basket, you know, rent, coffee, burgers, rent, whatever, and up comes Moscow as the most expensive place.

SERWER: Go figure!

M. O'BRIEN: And another surprise, Seoul. Who knew? Tokyo, we would have put on the short list, right?

SERWER: Yes.

M. O'BRIEN: Hong Kong you probably would have, London you would have, but those top two. Rounding out the bottom ten -- and the drum roll, please. We're doing U.S. cities now. New York is 10. We skipped the other top 10. You can guess.

SERWER: How about White Plains? Should we all move there?

M. O'BRIEN: White Plains, White Plains. Who knew?

SERWER: White Plains.

M. O'BRIEN: And it's interesting, I thought Boston would have been up there too, given the real estate costs.

Anyway, Andy Serwer is here to tell us about Michael Eisner, he's left the land of the rodent. He's onto other ventures related to kids. Tell us about that.

SERWER: Yes, well, Michael Eisner, the former CEO of the Walt Disney Company, I guess knows something about kids -- or does he? If you listen to this new venture he's gotten himself into, you might be scratching your head a little bit.

He has gone out and is buying a company called Teen Baby, and what they do is make college sports booster videos for kids. Between the ages of six months to five years. These are 30-minute videos.

There's one called "Baby Irish" for Notre Dame fans. "Baby Aggie" for A&M fans, "Baby Cowboy" for Oklahoma State fans. And these videos show children in football jerseys, these are basketball jerseys, and cheerleading outfits, running, dancing and playing to the school's fight song. Can you say niche market?

Um, I mean, listen. We all know the sports paraphernalia business is huge. I mean, college book stores sell millions of dollars of merchandise every year, but you know, to inculcate those little ones very early on. And I'm not sure it works. The guy who founded this company said that he got his little baby watching the Texas Longhorn video and a Michigan one, and the kid could do the Michigan Wolverines song or something. You know that kind of stuff --

M. O'BRIEN: Hail to the --

SERWER: I knew we could get you going.

M. O'BRIEN: I'm a Wemba weck from Georgia Tech? You know, Kiddie version, is that it?

SERWER: I'm not sure. Well, he thinks this thing's going to work. I guess who are we to argue?

M. O'BRIEN: Smart guy, but I mean, I can think of the grandparents wanting to indoctrinate early and getting them to go along with the problem.

SERWER: Goo-goo team!

All right, speaking of Disney, they're having an on again-off again, are they or aren't they relationship with the Chinese city of Shanghai. They deny they're building a park there. Now apparently it looks like they are. Disney Chairman Mitchell, we know him, has suggested that discussions are on-going. And that it won't hurt business at the Hong Kong park.

Um, I can understand that, given that they're very, very far apart and that there are billions of people --

M. O'BRIEN: Lots and lots of potential Disney --

SERWER: Sort of like having a park in California and in Florida, right?

M. O'BRIEN: Not going to hurt each other. They kind of helped. The rising tide lifts all boats -- all that. Why was Mickey in a bubble there? Did you see that?

SERWER: I didn't see that piece of video. I'm not sure if there is a Chinese angle --

M. O'BRIEN: Can we re-roll that again or not?

SERWER: Maybe we shouldn't, Miles.

M. O'BRIEN: Maybe we shouldn't. Let's talk about what's coming up next.

SERWER: Coming up next, we'll be talking about some big deals on Wall Street. Those metal companies are all getting together. The biggest mining deal of all time, actually happening this morning.

M. O'BRIEN: Let's show it quickly.

SERWER: The mining deal?

M. O'BRIEN: No! The bubble thing. See, he's in a bubble. It's like the guy at Lincoln Center there.

SERWER: It's a snow globe. It was Mickey's snow globe. He's concerned about germs.

M. O'BRIEN: That's it, that's it. Anyway.

SERWER: I think we should get Soledad to relieve us, don't you?

S. O'BRIEN: I'm happy to help you guys out whenever.

SERWER: Please.

S. O'BRIEN: After a short break, we'll be back in a moment.

(COMMERCIAL BREAK)

BOB FRANKEN, CNN CORRESPONDENT: I'm Bob Franken in Washington, a city that is under water and a city that to a large degree -- at least the official part -- is closing down because of the flooding.

ED HENRY, CNN CORRESPONDENT: I'm Ed Henry at the White House where the Bush administration is considering a plan for major troop cuts in Iraq. Democrats crying foul. They say it sounds suspiciously similar to a timetable. I'll have that story.

ANDREA KOPPEL, CNN CORRESPONDENT: I'm Andrea Koppel in Washington, a flag burning debate on Capitol Hill is making tempers flare but is this just more election year politicking? I'll tell you coming up.

M. O'BRIEN: Also Warren Buffett taking philanthropy to new heights. Giving away billions upon billions to someone even richer. That's ahead on AMERICAN MORNING.

M. O'BRIEN: Good morning to you. I'm Miles O'Brien.

S. O'BRIEN: I'm Soledad O'Brien. It's a messy commute as you saw from Bob Franken's live shot, in and around Washington, D.C. The streets are washed out, cars are stranded.

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