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Suspicious Package Leads to Delays at Long Beach Airport; Big Sell-Offs on Wall Street; Hearing for Michael Vick Scheduled Today; General May Be Disciplined for Covering Up Tillman Death

Aired July 26, 2007 - 13:00   ET

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


DON LEMON, CO-HOST: Hello, everyone. I'm Don Lemon live at the CNN world headquarters in Atlanta.
FREDRICKA WHITFIELD, CO-HOST: And I'm Fredricka Whitfield, in today for Kyra Phillips.

We begin with a developing story out of California, at Long Beach Airport. Flights are being delayed for an uncertain time -- amount of time right now because of a suspicious package that has been located there at the Long Beach, California, airport.

Significant because this is one of the world's busiest airports in terms of being a hub of corporate activity. It's an airport that's operated by the city of Long Beach, but this is one that services mostly the Orange and Los Angeles counties, so it is, indeed, a very busy one.

But because of this suspicious package that was located not long ago, now all incoming and outgoing flights have been delayed for an undetermined amount of time. We don't know how many people are being inconvenienced. But it really is, you know, a fluid situation right now.

We're continuing to work our -- our sources there in the Long Beach, California, area, and we'll update you as we get more information -- Don.

LEMON: And we're also getting new information, Fred, that KBAC is reporting that a bomb squad is on the way to that scene. All of this information we're getting is according to our affiliates there in the California area.

Again, a bomb squad on the way. A suspicious package. All we know is that the terminal -- some of the terminals -- I'm not sure if the terminals are being evacuated. But also that some of the flights are being delayed.

We're going to update you on this story throughout the day right here in the CNN NEWSROOM.

We're going to move on now and talk about Wall Street. On Wall Street, we're seeing one of the worst sell-offs of the year. The Dow is down -- well, let's get it straight from Susan Lisovicz, who's at the New York Stock Exchange to tell us what's going on.

How far is the Dow down now, Susan?

SUSAN LISOVICZ, CNN CORRESPONDENT: The Dow right now is down 267 points, Don. This would be the second worst point loss of the year, if the market closed right now.

At its low today, 320 points lower, the second triple digit loss this week for the Dow Industrials and just one week after the blue chips closed above 14,000 for the first time ever.

There is a combination of culprits. Very quickly, more bad news from the housing sector, three of the nation's biggest home builders, Beazer (ph) Homes, D.R. Horton and Pulte. All reported losses for the quarter. Those reports came in since the closing bell. Bad news there.

Then this morning, we got new home sales for the month of June. Down 6.6 percent. Home prices fell, as well. That report was worse than expected. It piggybacked off of yesterday's worse-than-expected report on existing home sales in June.

So home prices going down. That sector not showing any sign of recovery.

Meanwhile, oil prices are going up. Right now, at -- close to $76 a barrel. It's only about a buck away from the all-time closing high that we've seen for crude. That affects consumers and corporations alike. So we're seeing that.

I just want to mention one other thing, finally, Don, and that is word this week that the big leveraged buy-out for Chrysler has run into financing trouble. Those kind of buyouts have been fueling the market's highs this year. So it doesn't affect the average investor, but it does affect investor's sentiment. The combination, resulting in one of the worst sell-offs we've seen this year, Don.

LEMON: All right. And the average consumer, should they be panicked? We're going to get that information from you when we check back in with you. Thank you, Susan.

LISOVICZ: You've got it, Don.

WHITFIELD: Now, Don, more information on the situation out of Long Beach Airport in California. We do understand, CNN is confirming, that a bomb squad is on the way, if not already upon arriving there because of a suspicious package that was located there. The main terminal has been evacuated.

Sharon Diggs-Jackson is with the public information office there at Long Beach, California's airport, is on the phone with us now.

How much of what I just confirmed through our sources is the kind of information that you have, Ms. Jackson?

SHARON DIGGS-JACKSON, PUBLIC INFORMATION OFFICE, LONG BEACH, CALIFORNIA, AIRPORT: Our TSA did identify a suspicious piece of luggage, and as a result of that, we evacuated our terminal area. So there's no traffic coming into the airport at this point in time.

In regards to flights, our inbound flights are -- are still occurring. But there are no outbound flights at this point in time.

WHITFIELD: OK. And is it the case that bomb squad teams are on the way? Or are they already there?

DIGGS-JACKSON: Our local law enforcement has already responded. There is an additional bomb squad that will be responding to the scene, as well.

WHITFIELD: OK. About how many people is this inconveniencing there? This is a -- a rather -- a very busy corporate airport. But a city-operated one. We're looking at live pictures right now. Or rather, these are taped pictures right now, kind of the scope of the airport. People in the parking lot, et cetera.

How many folks are being inconvenienced through this investigation?

DIGGS-JACKSON: Well, this is a little bit quieter time period for us. The morning rush was over. But still several hundred people have been impacted and were evacuated from the terminal.

WHITFIELD: OK. How long do you expect that your outbound flights will be delayed and travel interrupted overall here?

DIGGS-JACKSON: We estimate at least two hours at a minimum of two hours.

WHITFIELD: All right. Sharon Diggs-Jackson, public information office there at Long Beach Airport. Thanks so much.

We're going to continue to watch the developments there as they further investigate the suspicious package, which turns out to be a piece of luggage that has been left there at that main terminal there at the Long Beach Airport -- Don.

LEMON: It is a very busy day in the CNN NEWSROOM. Now there's developing news in Washington. Senate Democrats are zeroing in today on two pillars of the Bush administration. If the key group of Democrats have their way, Attorney General Alberto Gonzales could be investigated for perjury.

And within the past hour, a top Senate Democrat announced he'll serve a subpoena to President Bush's political confidant, Karl Rove, and Rove's top aide in connection with the probe into the purge of U.S. attorneys.

(BEGIN VIDEO CLIP)

SEN. PATRICK LEAHY (D-MA), JUDICIARY COMMITTEE: We have now reached a point where the cumulative evidence shows that political considerations factored into the unprecedented firing of at least nine United States attorneys last year. Testimony and documents show that the list was compiled based on input from the highest political ranks in the White House, including Mr. Rove and Mr. Jennings. And today I will subpoena Mr. Rove and Mr. Jennings.

(END VIDEO CLIP)

LEMON: As for Gonzales, four Senate Democrats wrote the Justice Department today, urging a special council investigate charges of lying under oath to Congress. The letter cites three alleged instances of perjury, including a statement Gonzales made Tuesday to the Senate Judiciary Committee.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: The attorney general took an oath to tell the truth, the whole truth and nothing but the truth. Instead, he tells the half truth, the partial truth, and everything but the truth. And he does it not once, and not twice, but over and over and over again.

(END VIDEO CLIP)

LEMON: In response today, a White House spokesman accused Democrats of trying to make headlines instead of tackling important issues.

For more reaction and fallout, stay right here in the CNN NEWSROOM.

Let's go to the White House now for a statement on that. Elaine Quijano joining us with a statement on Karl Rove.

Hi, Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Don.

Well, that was the one-two punch you heard from Senate Democrats earlier today. Just a short time ago, in fact. And now we have the counterpunch coming from deputy White House press secretary Tony Fratto.

There was not an on-camera briefing scheduled for today. So what we've got for you is in the form of a statement, saying, quote, "Every day this Congress gets a little more out of control -- a new call for a special prosecutor, a new investigation launched, a new subpoena issued, an unprecedented contempt vote, and an old score somehow settled. All the while appropriations bills go unpassed and FISA modernization, energy and other important issues go unaddressed. It's unfortunate that this Congress continues to neglect the issues important to Americans, and Americans are taking note. Chairman Leahy could have accepted our offer of accommodation, but it's clear that he's more interested in headlines."

And Don, just a quick reminder on what that offer was, what the White House is calling an offer of accommodation. No transcripts, no sworn testimony, in fact, something that has not obviously satisfied Democrats on Capitol Hill.

But one other point to make here very quickly is that Arlen Specter, a Republican, when asked about Attorney General Alberto Gonzales and why it is he believes he is still on board, the Republican senator saying he believed it was because of a sense of personal loyalty that President Bush had.

All the while, he's a guest on Air Force One, heading up to Philadelphia. Very interesting to note, very telling the criticism coming, directed at this White House.

Back to you, Don.

LEMON: Elaine Quijano, thank you for your report.

WHITFIELD: And Don, perhaps folks remember this name, Andrew Speaker. He was the young man who ignited quite the furor after traveling, knowing that he had what's considered extreme TB.

Well, apparently, he has been hospitalized as of recent at the National Jewish Medical and Research Center. He was recently been discharged as of this morning after what doctors are saying was a completion, successful completion of his inpatient treatment for Multidrug Resistant Tuberculosis.

However, Mr. Speaker's physicians are saying they do not consider him completely cured yet, but his surgery and antibiotic treatment have eliminated any detectible evidence of infection, and he is considered non-contagious.

So, again, Andrew Speaker, the young man who made a lot of headlines because of traveling with this extreme TB, now being released from the hospital after getting successful, according to his doctors, treatment -- Don.

LEMON: OK. Another developing story here in the CNN NEWSROOM. This one involves a missing woman, a 21-year-old, and I hope I'm saying her name correctly, Mahalia Xiong. She vanished early on July 13 after a night out with friends at a bowling alley, at a sports bar. This is happening in Green Bay, Wisconsin.

Police just announced moments ago that they recovered a car -- discovered a car near the Fox River near downtown Green Bay. But they did not know whether it was linked to the 21-year-old student, who's been missing, again, since July 13.

Now here is what happened. An officer discovered the tire tracks going into the river at about 8 a.m. And according to a spokesperson with the police department, divers found the car, but the visibility was poor, so they didn't -- they couldn't tell if the license plate was connected with this 21-year-old student.

But again, they have recovered a car and police sending out information in that area. So they believe possibly this car is connected to this -- to this lake (sic). This is pictures now of the lake. And you can see rescuers and divers there -- excuse me. It should be divers looking for this car and trying to recover the car, and, of course, a license plate.

Here's what the car is. This is new video in to CNN from our affiliate WBAY in Green Bay, Wisconsin. She was last seen getting into a white 1996 four-door Mercury Sable and driving off alone. So that's the car that investigators are looking for now. Details to come on this story.

WHITFIELD: And now his football career is on the line, and so is his freedom. Michael Vick is due in federal court in Richmond, Virginia, in just a couple of hours from now on felony dog fighting charges. This will be Vick's first court appearance in a high stakes emotional case.

Animal rights activists as well as Vick supporters have been protesting outside the courthouse since early this morning. Two court proceedings are scheduled, and CNN's Brian Todd has details on both and joining us now.

Brian, what's it look like outside the courthouse?

BRIAN TODD, CNN CORRESPONDENT: Well, Fredricka, the lunch hour here in Richmond, much busier than usual, at least on this street corner, because of the crush of media observers, protesters, all gathering here.

Right behind me there's a line of people that have been waiting for hours to get in the courthouse, ringing this building. And Michael Vick, as you just mentioned, not expected to appear for another two hours.

You do have animal rights supporters gathering here. Maybe not quite as many as we expected. But one important development today is that the Humane Society of the U.S. has called on its supporters to essentially besiege the Nike Corporation with phone calls and other communications to try to urge Nike to drop Michael Vick as a sponsor.

Also there, are some Michael Vick supporters here. Very few of them, but they are here. They have gathered here. So a real buzz around this courthouse.

What are we going to hear and see in a couple of hours in this courtroom? Well, Michael Vick will make his first public appearance in this case since the indictment came down last week. He will hear the formal charges read against him, the conspiracy and dog fighting charges.

Also, they will probably set a trial date. Under federal guidelines, they've got to set that date within 70 days from today. Very important there.

A criminal defense attorney who I spoke to who has tried many, many cases in front of this judge and at this courthouse says that if Vick -- Vick's attorneys or the attorneys for the other three defendants object somehow to this trial date, if they want to postpone it, if they want to change it, if they are a little bit vague about when they want to start the trial date, look for that as a signal that maybe one of those parties -- might -- might -- be engaged in negotiations. So that's something to watch for in a couple of hours.

Also, Michael Vick will have a bond hearing, a detention hearing, to determine what kind of bond he is -- should post and whether he should have any travel restrictions placed upon him.

So Fredricka, that's what's going on here this afternoon. A lot of buzz. There's more activity outside than anywhere else right now.

WHITFIELD: Right. A lot of activity. And, you know, it -- it really goes to mention, too, that we're just talking about the indictment, the first court appearance, and we're not even talking about if and when there is a trial. But because of this high-profile athlete, that's explaining, you know, the attention there and the many people there at the courthouse.

Brian Todd, thanks so much.

So just what is Vick up against? And what do prosecutors have to prove? We'll put those questions to two outstanding criminal defense attorneys at 3 p.m. Eastern, right here in the CNN NEWSROOM.

LEMON: We're following developing news on Wall Street. Worst sell-off of the year. We'll have a live report straight ahead from our Susan Lisovicz.

WHITFIELD: And she says when she asked the Pentagon about a plan for withdrawing troops, she was accused of being unpatriotic. Well, now Defense Secretary Robert Gates is personally responding to Senator Hillary Clinton. Details straight ahead in the NEWSROOM.

LEMON: A suspicious package, Long Beach, California, causing havoc there, passengers having to be evacuated. We're going to follow up on this story, coming up on the other side of the break, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: More problems at Long Beach Airport. You're looking at newly obtained pictures there of the exterior of the Long Beach Airport. Many people evacuated from the main terminal there because of what is described as a suspicious package, which turns out to be an unclaimed piece of luggage there at the airport.

So inbound planes, as you can see in that one aircraft that just flew into shot, are allowed to land as scheduled. But no outbound for now.

We talked to the public information officer just a moment ago, who said the delay could go on for about two hours there, at the very least, as the bomb squad continues to try to probe this suspicious package, which turns out, again, to be that unclaimed piece of luggage there at Long Beach Airport, Don. LEMON: Following that one. And it's 18 past the hour. Here are three other stories we're working on for you right here in the CNN NEWSROOM.

A congressional subpoena is on its way to President Bush's top political adviser, Karl Rove. Senate Judiciary Chairman Patrick Leahy wants to make Rove testify about the decision to fire several federal prosecutors.

Just days after the Dow crossed 14,000, a very bad day today on Wall Street. A short time ago, the Dow was down 300 points, amid concerns about housing, oil, credit. You name it. We're on top of it.

The National Transportation Safety Board completes its investigation of last year's deadly Comair crash in Kentucky. Investigators cite, among other things, a distracted crew and also say airport markings need to be improved.

WHITFIELD: A three-star general, now retired, may play a big price for his alleged role in a cover-up surrounding the friendly fire death of Pat Tillman. Tillman, as you know, is the football star who joined the Army after 9/11 and was killed in Afghanistan.

CNN senior Pentagon correspondent Jamie McIntyre has the story.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): Pentagon sources tell CNN that Army Secretary Pete Geren is strongly considering a letter of censure against the highest ranking general facing punishment in the Pat Tillman case. If Geren recommends the censure, it would come on top of disciplinary action expected to be announced next week against nine officers who were all found to have made critical mistakes in the aftermath of the friendly fire death.

But for the three-star general who retired last year, it would mean a reduction in rank and a cut in pension benefits.

Lieutenant General Phillip Kensinger was the most senior of nine officers faulted by the Pentagon in a March inspector general's report probing the death of former NFL player turned Army Ranger Pat Tillman in April of 2004.

In fact, the three-star general was the Army's representative at Tillman's nationally televised memorial service the following month.

The DODIG report concluded that, at the service, although Lieutenant General Kensinger knew friendly fire was suspected, he decided to withhold notification from family members. It also found that, when asked about it later, Kensinger provided misleading testimony to investigators.

(on camera) He said at that point he didn't know that patricide was the likely cause -- a likely reason for the death, and that he didn't find out until afterwards, and you didn't find that credible? THOMAS GIMBLE, ACTING DOD INSPECTOR GENERAL: We didn't find that credible. We found evidence that he knew in the April time frame.

MCINTYRE: Well, that sounds like lying.

GIMBLE: In the Army, we'll look at that and we'll make a determination.

(END VIDEOTAPE)

WHITFIELD: And so Jamie McIntyre joins us live now. So Jamie, how significant are these punishments by at least military standards?

MCINTYRE: Well, none of these are -- raise to the level of criminal prosecutions or anything like that. But there are nine officers involved altogether, including four generals, most, if not all, will get some sort of reprimand, and the reprimand in the military can be a career-ending thing. A reprimand in your file means that when you come up for promotion, you may not get promotion and you may have to retire.

In the case of Lieutenant General Kensinger, of course, it's a little more serious than that. He came in for the harshest criticism. And to take away one of his stars and essentially fine him for his -- by having his pension benefits reduced, as well, about $1,000 a month I'm told, that's a pretty significant hit for something that's not a criminal offense.

And most of these offenses fall into the category of simply not doing a very good job, not breaking the law.

WHITFIELD: So you mention nine officers, four generals who are already facing disciplinary actions. Might there be others who would be implicated and face a similar fate?

MCINTYRE: Well, in theory, it's possible. From all practical purposes this is the end of the line as far as the Army is concerned. There have been four separate investigations. There already were people at lower levels who were disciplined earlier on, and this is the final investigation and the final disposition of that investigation. It's unlikely we'll see any more action after this.

WHITFIELD: Jamie McIntyre, thanks so much from the Pentagon.

LEMON: They may influence your hair style, your taste in music or your choice of cell phone, but do your friends also influence your size? Surprising results of a new study, straight ahead.

And let's take a look now at the markets. The Dow just a short time ago, down almost 300 points. One of the worst sell-offs of the year. We're going to check on that with our Susan Lisovicz in just a bit.

(COMMERCIAL BREAK)

LEMON: All right. We have a developing story happening in Washington, D.C.

We're hearing that the bureau, ABC News bureau has been evacuated there. Not exactly sure why, except for there's a suspicious package. We're hearing this -- the bureau is located at 1717 DeSales Street Northwest, and that's right below Dupont Circle we're hearing, about ten minutes maybe from the White House.

But again, the Washington bureau of ABC News evacuated because of a suspicious package. We will follow this.

WHITFIELD: Meantime, let's talk about Wall Street. We're seeing one of the worst sell-offs of the year, and things just keep going further downhill. Susan Lisovicz is at the New York Stock Exchange to tell us what's going on.

We get excited when it goes go up, and then now it really plummets, and we're wondering the reasons why.

LISOVICZ: Yes, we're feeling quick schizophrenic in the past week, aren't we, Fred. Because just one week ago, the Dow Industrials closed above 14,000 for the first time ever. It's now about 500 points below that.

So what's going on? Well, you can't just blame it on one thing. First, we've got more bad news from the housing sector. Three of the nation's biggest home builders, D.R. Horton, Beazer (ph) Homes, Pulte Homes, all reporting their quarterly earnings. They all reported losses.

Add to that another bad read on home sales. Yesterday, we got existing home sales worse than expected. Today, we got new home sales worse than expected, dropping 6.6 percent in June. Home prices also fell.

So that is another -- that is a factor. Then there is growing factors that the problems in housing will spread to other sectors of the economy.

And then finally, we have oil prices, which have been creeping steadily higher, even though they've turned around in the past hour. We're still looking at prices that are about $1 from the all-time closing high.

So check it out on the big board. The Dow Industrials, which at their low of the session were down 320 points. Right now, down 295 points. The NASDAQ is down 61 points, each of them losing about 2 percent -- Fred.

WHITFIELD: So on the scale of things to be alarmed about on Wall Street, you know, put this in perspective. How bad really is this?

LISOVICZ: Well, it's a bad sell-off. There's no question about it. You look at the point loss.

But I think really what you have to look at is the power of the sell-off, Fredricka. The volume is strong. This is not a tepid type of sell-off. The advanced decline line, something a lot of pros look at, is just overwhelmingly negative. We're looking at one stock on the rise here at the NYSE for every ten that are selling off.

But in terms of points overall, we're not close to anything historic. The worst point loss ever for the Dow Industrials was right after 9/11 when the market reopened, and that was 685 points. Where you have to consider that at the time the Dow industrials were so much lower they were at -- if I can just check it out, were at 9,230. So it was a much bigger percentage loss.

We just hit 14,000 a week ago. We're looking at a 2 percent loss today. That just doesn't factor into some of the worst sell-offs we've seen historically, where you're talking about double digit declines.

WHITFIELD: Wow.

LISOVICZ: It's bad, but it's not anything to be panicked about. These things happen. You know, stocks can be volatile, and especially when you get to record territory.

WHITFIELD: All right. We won't panic, but we know what goes up goes down, and hopefully, vice versa, too.

LISOVICZ: And sometimes it can be extreme.

WHITFIELD: Yes. All right. Thanks so much, Susan.

LEMON: All right. Just getting new information in. We told you about the ABC bureau in Washington, D.C., being evacuated because of a suspicious package. Getting new information. And this is literally just off the wires.

D.C. Fire and EMS, a spokesperson there says it was a small envelope was found with a white powdery substance. This is according to the Associated Press there.

They're also reporting that the building has been evacuated as a precaution, and no one has reported any medical symptoms.

But again, this is the ABC bureau in Washington, D.C., located at 1717 DeSales Street Northwest, in Washington, right near Columbus Circle, just below -- not Columbus Circle, excuse me, Dupont Circle. Columbus Circle in New York. Dupont Circle there in Washington D.C.

We're going to follow this developing story as well as others. Another one happening, Long Beach, California. Terminal being evacuated there. We'll follow.

(COMMERCIAL BREAK)

LEMON: Hello, everyone. Bottom of the hour. We're following several developing stories right here in the CNN NEWSROOM. As you look at that video of Michael Vick, of course, we'll be following that throughout the day. But here's what we want to tell. We have a developing story happening in Washington, D.C. right now. The ABC News bureau there in Washington, D.C., has been evacuated. New information in now just to CNN. A small envelope containing a suspicious powdery substance, they have found that.

Now according to fire investigators who are on the scene now, again, this is new information, that that substance does not appear to be toxic or appear to hurt anyone. It's not threatening. But again, the entire bureau there has been evacuated, just to give you an idea of where that is. It is 1717 DeSales Street Northwest in Washington.

Of course, after 9/11, we had all kinds of scares like this after the anthrax scares, but again -- after a suspicious package was delivered to NBC News in New York. But again, this is ABC News, the bureau in Washington, D.C., today evacuated. But the substance appears to be not threatening according to fire officials on the scene.

WHITFIELD: And then this on the West Coast. An evacuation at the Long Beach Airport because of a suspicious piece of luggage. The bomb squad is part of this investigation and a short time ago, I spoke with Sharon Diggs-Jackson of the Public Information Office at Long Beach Airport.

(BEGIN VIDEO CLIP)

SHARON DIGGS-JACKSON, LONG BEACH AIRPORT: our TSA did identify a suspicious piece of luggage, and as a result of that we evacuated our terminal area. So there is no traffic coming into the airport at this point in time. In regards to flights, our inbound flights are still occurring, but there are no outbound flights at this point in time.

(END VIDEO CLIP)

WHITFIELD: And it's Ms. Jackson's prediction that it could be at least a couple of hours before they know exactly when they might be able to reopen this airport to all incoming as well as outbound flights.

LEMON: A developing story we've been telling you about all afternoon here in the CNN NEWSROOM. Training camp is out of bounds for Atlanta Falcons quarterback Michael Vick. As his teammates report for practice, Vick is due in federal court in Virginia to answer felony dogfighting charges. What do his fellow Falcons make of all of this? For that, we go straight to Larry Smith. He is in Flowery Branch, Georgia, with the very latest for us.

Hi, Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Well, hi, Don. How are you. We were hoping to talk to several of the players. After practice today, they will take the field around 3:00 this afternoon Eastern time for the first official practice of the new season here in 2007. You know, this was a day that has been, well, much anticipated by the Falcons since the end of last year's season. It ended on a disappointing losing record. A new head coach, but now it turns out a new quarterback, Joey Harrington is the man for the moment. As it's Michael Vick has much bigger issues, as you mentioned, he's in Richmond, Virginia.

He and his three co-defendants at an arraignment hearing in a federal court in Richmond on charges that they ran a gruesome dogfighting ring.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: These charges are extremely serious. This is not about him playing football in 2007. This is about him having a life and having a life and having a life going forward. And I would -- you know, my only personal suggestion to Michael is that he focus on his defense.

SMITH (voice-over): The Falcons wanted to suspend Vick for four games, but the NFL asked the team to hold off. Vick was told to stay away from training camp while the league conducts its own investigation. The NFL could decide to punish Vick for violating its personal conduct code, even before a judicial verdict is reached.

UNIDENTIFIED MALE: We're not trying to circumvent the legal process or the criminal process. We respect that, and we think it needs to move forward. On the other hand, in the interest of myself and Gene and I think overall is the National Football League. What are we going to do that's responsible to the National Football League and our fans?

UNIDENTIFIED MALE: We're definitely in concurrence that we felt him being in training camp was not the correct thing for him personally, given what he has to deal with now, or for our coach, coaches and our players and our organization, our fans, the community.

UNIDENTIFIED MALE: What we need to do is meet as a team, talk about it, make sure we get all of our feelings out in the open and then we need to put it behind us and move on and do everything we can to prepare for the season.

SMITH: That will be a tall task, and not something Petrino thought he had to do when he was hired six months ago and called the Falcons job the best in the league.

UNIDENTIFIED MALE: I have absolutely no regrets in taking the job. I'm very motivated and energetic towards the challenges. This is a big obstacle, there is no question about that, and only time will tell whether what I said really happens.

(END VIDEOTAPE)

SMITH: Well, you know, in December, 2004, when Falcons' owner Arthur Blank, the co-founder of Home Depot, signed Michael Vick to a 10-year $130 million contract, he joked then that, now I work for Michael Vick. Few jokes these days though as Blank is hoping get his star quarterback back in camp at some point. We don't know when. But as for now, practice begins today at 3:00 Eastern time. Let's go back to you.

LEMON: Larry Smith, thank you very much. We'll check back with you.

The Vick case is stirring up strong emotions, especially among sports fans. Joining us now to talk about that angle is Steak Shapiro from Atlanta Sports Radio 790.

What's the big deal about all of this? In some circles they say, you know what, dogfighting, they don't find it inhumane. Other people are saying obviously it's again the law.

STEAK SHAPIRO, MORNING HOST, 790 THE ZONE: Well, yes, it's a federal indictment, federal indictment, which, by the way, 90 to 95 percent of all federal indictments end up with a plea or a guilty, which means Michael Vick, the biggest sports stars in the history of Atlanta, one of the biggest sports stars in the world could be going to federal prison.

That's a huge deal. It's also a huge deal because, as I mentioned, you know, this is a player that was the face of the National Football League for years, and he is facing serious charges. There are people divided on it. And no matter how you feel about dogfighting, it's a federal indictment. So you may not think it's a big deal, but the Feds do, and that is what matters.

LEMON: But I have been listening to talk radio a lot and watching the sports channels a lot. And there are people who are calling in, writing in, saying, you know what, it is dogfighting, but in some social circles dogfighting is OK. And they belief it is OK. And you said one of the players came out today saying it was no big deal.

SHAPIRO: Well, Deion Sanders came out and said, you know what, some people choose to -- I think he said, some people choose to sleep with their dogs in the same bed, feed them great food, and dress them up. And some like to see who is the toughest dog. As if comparing, there are two ways to treat your dog, either fight to death or just treat them like a member of the family.

I don't get the analogy. And again, as you said, some social circles, I don't know about you, but my Friday nights I would prefer to have a martini and grab dinner than go watch two dogs maul each other to death. So whatever social circle that is, that's not a social circle most of America is comfortable with. And regardless, it's a federal indictment.

(CROSSTALK)

LEMON: It is against the law. Let's talk about this. Because he was suspended, but still with pay. He is not to report to training camp. Do you think the NFL handled this properly? And if so, it's an image thing for them, right, whether or not he's convicted or not? SHAPIRO: Well, yes. There's a new sheriff in town, Roger Goodell. And Roger Goodell is very conscious of the image of the National Football League. And if you read this 18-page indictment, it is a horrific, chilling account of dogs being electrocuted, beaten to death, drowned, fighting to their death. And it has got Michael Vick's name in it 50 times.

So there is no -- I mean, that is the reality. Anybody who reads this indictment, Roger Goodell is all about cleaning up the image of the league. You start with Pacman Jones and Tank Johnson. He is not going to have it. And he is saying -- he wants to avoid the circus. If Michael Vick showed up at training camp today, it would have been a media circus.

LEMON: OK. I have got to show you this real quick. And this, you know, the $75 -- usually...

SHAPIRO: Yes, game jerseys.

LEMON: Ten bucks, game jersey for Michael Vick here being sold at sports stores, now $10. I talked to people and they said, you know what, they can't even keep them on the shelves now. We've been talking about those people's reaction, but there is a also racial divide with this.

Some people say Michael Vick is being coddled because he's African-American, others are saying that he's being tortured because he's African-American.

SHAPIRO: Well, I'll tell you this. Atlanta is a very racial city. And race permeates -- I have been doing sports talk and talk radio in this town for 12 years. Everything comes back to race in Atlanta, what the perception is on the political end, the sports arena.

And this is a divided city. You know, African-Americans feel like that the league is -- he's a first-time offender, he hasn't been convicted of anything, let's wait until due process. And then there's an element of white community that just says, hey, look, Michael Vick put himself in this position. Stay out of the papers, stay out of a federal indictment if you want to play football.

But the unfortunate thing is, is how this city has become so racially charged. I can tell you, today we did a no Vick moratorium. We called it "no Vick Thursday," because it has been nine days of people...

(CROSSTALK)

SHAPIRO: Nothing but strong emotion. People are upset. This is a hero in this town. This is the number one marketed player in the history of Atlanta. This is a big-time personality that now you are looking at a guy that's going to be in federal court today facing charges. So it is a bad story all the way around.

LEMON: Steak, we have got to go, but thank you, Steak Shapiro. SHAPIRO: Who gets the jersey?

LEMON: Yes, we'll talk about that. Thank you very much for coming in to talk to us.

SHAPIRO: All right. Thank you.

WHITFIELD: All right. Just a follow up right now on the situation in Washington, D.C. The ABC Washington news bureau has now been given the all clear. All of those personnel and members who were evacuated within the past hour because of a suspicious substance are now being allowed to return to work there at the ABC News Washington bureau there right off Connecticut Avenue on DeSales Street there in Northwest Washington, just blocks away from a very busy commercial business district. But the all clear for those folks, allowed to return to work there in the Washington bureau of ABC News.

Meantime, talking about court cases, Michael Vick expected in a federal court today. Meantime, a federal court judge hands down a pretty stiff opinion on a case that was supposed to set some tough ground rules for immigration in Hazelton, Pennsylvania. Our Bill Tucker has been following this case. He joins us from Hazelton.

You have got the mayor of Hazelton with you too, who I suppose is considering this a pretty big defeat. Explain.

BILL TUCKER, CNN CORRESPONDENT: Yes, the decision was handed down today by James Munley from the Third Circuit Court, ruling against the city, Fredricka. He ruled the city's ordinances, which were aimed at cracking down at illegal aliens in the community, as unconstitutional and he has permanently enjoined the city from enforcing those ordinances. Mayor Lou Barletta is with me now.

Mayor, step in for one second. I guess...

(TRUCK SOUNDS)

TUCKER: We'll let the Mack truck roll by. I guess you must be fairly disappointed with the ruling.

MAYOR LOU BARLETTA (R), HAZELTON: Well, we've had a few months to think about this day. And, again, I haven't had the time to sit down and talk with our legal defense team. And we'll sit down, we'll look at the ruling and decide where we're going to go from here, but obviously disappointed.

TUCKER: Well, a lot of talk has been talked, what's next would be an appeal, both lawyers have indicated whoever lost was going to make an appeal. Do you anticipate appealing this?

BARLETTA: I do anticipate that. I believe both sides realize that today was not going to be the last day. And the small city isn't ready to stop fighting yet.

TUCKER: All right. Thank you very much, Mayor. We appreciate your time, we'll talk to you later. BARLETTA: Thank you.

TUCKER: Fredricka, the mayor will be a guest on "LOU DOBBS TONIGHT" later in the day. You can hear he is clearly disappointed and we do anticipate that an appeal will be filed. In fact, people have been paying close attention to this court case, because they anticipate that it could go all the way to the Supreme Court, and it is important to a number of local communities who have been struggling with what they can do or what kind of ordinances they might be able to draft as they try to deal with the problems of illegal aliens in their communities -- Fredricka.

WHITFIELD: All right. Bill Tucker, thanks so much, from Hazelton, Pennsylvania. And of course, you can get a lot more on this ruling, what it means to the town of Hazelton, what it means to the rest of America, as Bill was explaining, folks are trying to crack down on immigration, on "LOU DOBBS TONIGHT." That begins at 6:00 Eastern.

LEMON: And Fredricka, everybody weighing on this one. They may influence your hair style, your taste in music, or even your choice in cell phone, but do your friends also influence your size? What do you think. All right, hold it, don't tell me now. Surprising results of a new study, straight ahead in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Putting on a few pounds? Yes, I'm talking to you. Are you putting on a few pounds? Well, blame your friends. A new study suggests that obesity is socially contagious. CNN medical correspondent Elizabeth Cohen has been looking into that and she is here to fill us in on the details.

We're joking around, but this is a very serious study.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Yes. It's sort of a whole new way to look at obesity. It's not fast food. It's not being a couch potato, it's your friends. Blame your friends if you're overweight.

What this study out of Harvard found is that people who were overweight were more likely to also have overweight friends compared to people who were thin. And the doctors said, gosh, this is interesting. Why in the world would that be?

Well, one explanation is that you meet a group of friends, they are heavy, you hang out with them, you maybe adopt their eating habits and you start to get bigger, but then you look at your friends and they are the same size, so you think that's normal, this is just the way people look. That's one theory. But nobody really knows.

LEMON: So I need to get all buff friends who are...

(LAUGHTER)

LEMON: Only going to be friends with people who are like trainers and all that stuff. But really, how can you use this information? Because there's always a way you can turn it around to your advantage.

COHEN: Well, that's the way you kind of said it. Like if everybody around you is buff, maybe you will be buff too. So one way to think about it is you can talk -- if you are overweight and your friends are overweight, you can talk to them and say, hey, let's all go on a diet together, let's start exercising together.

Because if obesity is a socially contagious disease, as the researchers say, then maybe being fit is also a socially contagious disease. But the clue is, do it together.

LEMON: OK. I have got to say this, because we went downstairs to our plaza here, because there are -- lots of people gather and we get visitors, and we asked them about that. And you know what, some people talked about family members. They thought that it may be more so with family members than friends.

What do you think? Do you think it's the same thing with family members?

COHEN: This study said that your family members did influence your weight, but not nearly as much as friends did. So for example, looking at a spouse, what they found is the spouse influenced it, but not as much. The researchers say they think that is because your spouse is of the opposite gender.

And that you sort of take body image clues from people of the same gender. So for example, if you were a woman, a sister was going to influence you more than a brother.

LEMON: Got it.

COHEN: So you might look at a sister and say, well, I'm heavy, but she's heavy too. So maybe this is normal. Not as likely to do that with a brother.

LEMON: You're sister but not a "sista"?

COHEN: Right. Yes, right.

(LAUGHTER)

(CROSSTALK)

LEMON: Joking around here. OK. But again, thank you very much for that. And we're going to talk to some folks. We went to interview them and we're going to hear what they have to say. I think the question to ask them is, do you think that your friends -- who you are friends with, does that influence what's on the scale?

COHEN: I'm curious to hear what they have to say.

LEMON: Yes. Absolutely. Thank you, Elizabeth Cohen, always a pleasure. COHEN: OK. Thanks.

WHITFIELD: All right. Well, the furry grim reaper (INAUDIBLE) heard of it? An uncanny cat makes rounds at a Rhode Island nursing home, and the staff says it's a sign.

LEMON: And on Wall Street, we're seeing one of the worst sell- offs of the year. It's down almost 300 points. It was down 300 points at one time. Live report straight ahead from Susan Lisovicz, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: All right. An update of Long Beach's airport, which has been evacuated because of a suspicious piece of luggage left behind that now the bomb squad is about to investigate. And this also means that while inbound flights are allowed to continue on their way to Long Beach, they are kept from going to the jet way, so they have to stay on the tarmac. Meantime, there are no outbound flights that are allowed to continue their service there at Long Beach Airport. Live pictures right now of what appears to be a fairly empty terminal right now, because the majority of the people are outside waiting for the all clear so that they can continue on with their travels.

LEMON: Well, there is an Emily Dickinson poem that says, "because I could not stop for death, it kindly stopped for me." Staffers at one nursing home in Rhode Island say it is in the form of a cat. Caretakers there say Oscar (ph) has a knack. He appears to know when patients have less than four hours to live. It's kind of a grim story, isn't it? They say Oscar makes rounds, sniffing and observing patients and if he stays in the room, it's time to call the family. The furry, as Fred said, grim reaper, said to be on target at least 25 times. I would not want Oscar near me.

WHITFIELD: That sixth sense. All right. Well, let's talk about Wall Street.

LEMON: He's cute, though.

WHITFIELD: He is real cute.

LEMON: We're seeing one of the worst sell-offs of the year with the Dow right now down 332 points. Susan Lisovicz joins us next in the NEWSROOM to explain what it all means.

(COMMERCIAL BREAK)

LEMON: The federal courthouse in Richmond, Virginia, it's a long way from the Atlanta Falcons training camp, and so is the Falcons star quarterback, Michael Vick.

WHITFIELD: Even if Vick were invited to train with his teammates, which he is not, he is indisposed today. He faces two hearing on federal charges of conspiracy to operate a dogfighting ring.

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