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American Morning
Investigation Into Iraq's Oil Revenues; Mail-In Ballot Could Deal With Delegate Dilemma; Drugs in the Water Supply; Gas Prices Climbing
Aired March 10, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And this morning, there's a call by two senior members of the Senate Arm Services Committee. They want an investigation into Iraq's oil revenues. Senators are concern that Iraq is not spending nearly enough of its own money to fix the infrastructure. The U.S. has invested billions in the rebuilding effort.
CNN's Brianna Keilar is live on Capitol Hill with more on what they want to find out through this investigation.
Good morning, Brianna.
BRIANNA KEILAR, CNN CORRESPONDENT: Good morning, Kiran. They want to know how much oil revenue Iraq has and they want to know why the Iraqi government hasn't spent more of it on reconstruction when so many Iraqis are without basic services, like clean water and electricity.
We're talking about two senior members of the Senate Armed Services Committee asking the Government Accountability Office. This is the U.S. office that oversees the finances of the Iraqi government. So, we're talking about Chairman Carl Levin, who's a Democrat, and senior member Senator John Warner, who is a Republican.
And these men, they also want to know where is this money because in this letter to the head of the GAO, they say, "We believe that it has been overwhelmingly U.S. taxpayer money that has funded Iraq reconstruction over the last five years, despite Iraq earning billions of dollars in oil revenue over that time period that had ended up in non-Iraqi banks."
So, concern that this money is in foreign bank accounts. Now, at this point, the Iraqi government has not immediately responded to these allegations.
Kiran?
CHETRY: Brianna, just how much is the U.S. government spending on Iraqi reconstruction?
KEILAR: Well, U.S. government, since the war started five years ago, has spent about $47 billion. And when you talk about what the Iraqi government has spent in oil revenue, it's really unclear. But most estimates put it at just a fraction of what the U.S. has spent. And Senators Levin and Warner are wondering why has that been the case? And if it is, why must they continue? Because they actually in the letter estimate that oil revenue for Iraq for last year, 2007 and 2008 together is going to be about $100 billion altogether.
CHETRY: Brianna Keilar for us this morning on Capitol Hill. Thanks.
JOHN ROBERTS, CNN ANCHOR: Turning now to the race for the White House. Barack Obama has got two campaign events today in Mississippi ahead of tomorrow's primary and fresh off of winning Wyoming's caucuses on Saturday.
Meanwhile, Hillary Clinton has already turned her attention to the Pennsylvania primary. She's going to be campaigning in Scranton today. Nearly 200 delegates will be up for grabs on April the 22nd. That is six weeks from now.
Let's got a check on the delegate count right now. CNN puts Obama at 1,527 delegates. Clinton, 99 behind at 1,428. 2025 delegates needed to clinch the nomination.
And a possible solution for Michigan and Florida. A mail-in ballot that could deal with the delegate dilemma. Democratic leaders discussed the option on the Sunday talk shows. Democratic National Committee Chairman Howard Dean calling the idea a potential resolution to the conflict.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: We don't think knock-down, drag out fights are ever good between Democrats. We'd much prefer to have this all settled well before we get to the convention.
(END VIDEO CLIP)
ROBERTS: Lawmakers also addressed concerns about possible voter fraud, saying Oregon began mail-in balloting for all elections 10 years ago and no problems have been reported. Florida and Michigan were stripped of their delegates when the primaries were scheduled early in violation of party rules.
And the race is over but the campaign apparently is not. Ron Paul says he knows that he can't win the Republican nomination, but says he wants to keep campaigning to get his ideas out there.
Earlier on AMERICAN MORNING, I asked the congressman if he would endorse presumptive Republican nominee John McCain.
(BEGIN VIDEO CLIP)
RON PAUL (R), PRESIDENTIAL CANDIDATE: I'm not likely to support John McCain unless he changes his views. I mean, he doesn't represent anything I've talked about for 30 years. Non-intervention foreign policy, personal liberties, civil liberties, free markets, no McCain- Feingold, no child left behind. I mean, he doesn't stand for any of those things. So, how could I reject everything I've talked about for 30 years and galvanize 350,000 people, say, OK now it's all over. Unity is the most important thing, now I endorse John McCain. Nobody would understand that.
(END VIDEO CLIP)
ROBERTS: There you go. I also asked Paul if he would consider running as an independent. He said that wasn't practical. So, there you go. Ron Paul, out but not out, in but not quite in either.
ALINA CHO, CNN CORRESPONDENT: That's what you call perseverance.
ROBERTS: Why these people wanted to stay in. They say no reason for him to drop out, even though he can't become the nominee.
CHO: He's quite a sensation on the Internet.
ROBERTS: Unless something really, really radical happens.
CHETRY: (INAUDIBLE) as well.
CHO: That's right.
ROBERTS: Alina Cho here with us this morning with other stories that are new this morning.
ALINA CHO, CNN CORRESPONDENT: Yes, I know you've been following this water story very closely, guys. Good morning again. Good morning, everybody.
And new this morning, a scary new report is out about drugs in the water supply. The Associated Press is reporting it found traces of prescription medicine in tap water that's used by 41 million Americans. The report covers 24 major metropolitan areas including Southern California and Northern New Jersey.
The list of drugs includes over-the-counter pain medicine, mood stabilizers, anticonvulsants, even hormones. The drugs, we should mention, cannot be filtered out of waste water. Doctors say the test registered very small traces but they're still in the dark about the long-term health effects. You can see a full list of the states affected at our Web site. Go to cnn.com/am. A lot of people concerned that story.
Meanwhile, gas prices are climbing again to an all-time record. The new average, $3.20 a gallon, according to the Lundberg Survey. And prices are expected to go even higher as we headed into the summer driving season. That happens every year. Again, $3.20 the new national average. That's up 26 cents in the past month and a whopping 64 cents in the past year.
Police in North Carolina announced a big break over the weekend in the murder case involving UNC's student body president. Investigators say ATM surveillance photos appear to show a second person in the back seat of what could have been Eve Carson's blue 2005 Toyota Highlander. You have to look very closely there. The new lead comes as hundreds attended a memorial service in Carson's hometown of Athens, Georgia. She was found shot to death Wednesday morning just a mile from the UNC campus.
Police in Oklahoma City are looking for the suspects in a mid-day kidnapping attempt and it was all caught on tape. You've got to look really closely here. Sondra Fleming in the white there says she was just minding her own business, unloading groceries at a Wal-Mart parking lot when somebody tried to grab her.
(BEGIN VIDEO CLIP)
SONDRA FLEMING, ATTEMPTED KIDNAP VICTIM: This guy comes around and grabs me here and here from behind me. And (INAUDIBLE) me around, and when he does, he jerks me and I fall and then he drags me to the car and I'm yelling, help, help. Then he has me partly in the car, and this little lady comes and helps me.
(END VIDEO CLIP)
CHO: Fleming fractured her wrist. She says the suspect took off with her purse. But she survived.
An apology this morning from an Australian magazine that broke the news of Prince Harry's deployment to Afghanistan. "New Idea" magazine, that's what it's called. They published a formal apology today, saying it made a quote, "serious lapse in judgment." Editors say they were not aware of the British military's agreement with the news organizations not to disclose what the Prince was doing.
The magazine ran the report back in January. It went largely unnoticed until last month when the "Drudge Report" published it. Harry was later pulled out of Afghanistan, about 10 weeks after being on the frontlines.
And take a look at this. A lot of bling for the bucks. Sotheby's in Hong Kong plans to auction off that 72 carats, flawless -- flawless being the key word, white diamond next month. Take a look at that number there. The pear-shaped stone could sell for as much as $15 million.
Small price to pay, right, John? It's not on your budget. You can at least get a good look at it. The mega diamond, by the way, will be on display beginning today at Sotheby's in New York.
CHETRY: How about it. They say it's a rarity to even find a diamond that big, but to be able to cut it flawless is a true -- it's priceless, John. Can't put a price tag on it.
(CROSSTALK)
CHO: Kiran and I, know a lot about this whole thing. It's got the for C's, you know. With cut, color, carat weight and clarity.
(CROSSTALK) ROBERTS: The price tag is $15 million.
CHO: Small price to pay, John.
ROBERTS: Who's going to buy that?
CHETRY: We'll see what happens. It goes up for auction I think overseas in Hong Kong.
CHO: In Hong Kong.
CHETRY: Find out.
CHO: Find out who buys that beautiful stone.
CHETRY: All right. Thanks, Alina.
CHO: You bet.
CHETRY: Well, extreme weather leaving its mark across the country. You can see just how dangerous driving was over the weekend. Here's a shot in Ohio taken, you know, by somebody riding in the front seat, near whiteout conditions. They nearly got 20 inches of snow falling. Close to 2,000 crashes reported. At least five deaths blamed on that storm. Freezing rain also turned roads into skating rinks in West Virginia as well. Nine crashes reported there.
Our Rob Marciano is in our weather update desk. He's been tracking extreme weather for us. You know, the best tires in the world aren't going to help against that when the bridges and overpasses literally turn into a sheet of ice.
(WEATHER REPORT)
ROBERTS: That storm kind of looks like half a hurricane. Doesn't it?
CHETRY: It really did.
ROBERTS: You can see a real center of attention there. Amazing. Be careful out there. A couple of lives lost over the weekend.
The clocks sprang forward over the weekend but your stock portfolio may have fallen back big time. Ali Velshi is here "Minding Your Business" for us this morning. Boy, it seems lost like most of its value?
ALI VELSHI, CNN CORRESPONDENT: In 2006.
ROBERTS: Yes.
VELSHI: I mean, the DOW, most of this -- the DOW and S&P were record levels in October. But if you went asleep for a couple of years and you woke up, you'd be wondering whether the stock market is exactly. It's like Thurston Howard III reading his newspaper. Let's take a look at what the DOW has done in the last 52 weeks. Just to give you an impression of what your -- if your portfolio looks like this one. You check out your 401k, don't be surprised. You'll notice that in early January, it looks like it was actually lower right towards the -- right-hand of your screen. It looks like it was lower. But that wasn't actually where it closed.
It sort of hit that level during the day and then came back up. That was over 600-point swings. The bottom line is the DOW on Friday closed at a level that is the lowest since October 11th of 2006.
Take a look at the S&P 500. The DOW is 30 stocks; The S&P is 500 stocks. Guess what, the map looks exactly the same. You're at the lowest levels there as well. Now, if you're one of this people who like to look at your gains on a yearly basis, take a look at where these indexes have been since January 1st of this year. The DOW 10.3 percent. NASDAQ down 16.5 percent. The S&P down almost 12 percent.
So rough times for those of you with stock portfolios. Remember, we talk about these indexes because you can buy particular industries and types of investments that don't perform the same way. And for those of you who are looking in despair, it might be an opportunity to start looking at those things. All stocks don't move the same way.
ROBERTS: So it's not necessarily that for people who are in it for the long term. That 2007 didn't exist at all?
VELSHI: Correct.
ROBERTS: Some people...
VELSHI: Yes. And that's exactly right. And again, if you're in for the long-term, don't sweat this too much. Here for the short term, you need to take a closer look.
ROBERTS: All right. Ali, thanks very much.
CHETRY: Hillary Clinton needs those Democratic delegates from Florida and Michigan. But how can she get her hands on them? We're going to find out what the Clinton campaign wants the party to do, just ahead.
Also, he's trying to clean up his neighborhood with the help of a remote controlled crime fighter. Not everybody is happy about this. The so-called Robo-cop. We have details ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. Mississippi holds its primaries tomorrow. Then it's on to Pennsylvania in April. But there are some new plans and proposals coming in about what to do about the votes in Florida and Michigan. The Democratic National Committee, as we've all been talking about, stripped both states of their delegates for moving their primaries up.
So, is there a solution in the works now? Ann Lewis is a senior adviser for the Clinton campaign and she joins us this morning from Washington.
Thanks for being with us this morning, Ann. Good to see you.
ANN LEWIS, SENIOR ADVISOR, CLINTON CAMPAIGN: Good morning.
CHETRY: So Howard Dean, DNC chair, said Sunday that a revote by mail in Michigan and Florida could be one of the possibilities. He also downplayed though whether the candidates would have a decision -- have a role in the ultimate decision. Let's listen to what he said.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: When these states come before us with proposals, we are going to go to both campaigns and work with them. They're going to have to accept these. Because we need all of their followers. We can't have half the Democratic Party walk out thinking there were some deal cooked and that's why their person didn't win.
(END VIDEO CLIP)
CHETRY: Would the Clinton campaign Ann, be willing to accept that proposal without this mail-in ballots?
LEWIS: Well, I think what's most important to us is what do Florida Democrats and Michigan Democrats think will be fair? Look, let's go back for a moment and look at what the Democrats in those states did. In Florida, you had a record turnout. 1,700,000 Democrats showed up to vote, even though the Democratic candidates chose not to campaign there.
CHETRY: Ann, however, as our Bill Schneider, who breaks downs those things has pointed out, it shows a record turnout. More Republicans voting than Democrats actually in Florida and some of the evidence that they did stay home because they were told their votes wouldn't count.
LEWIS: Well, I can't find evidence that people stayed home.
(CROSSTALK)
CHETRY: People saying that they decided to sit that one out, because they were told they wouldn't count. But I'm just asking would a mail-in situation be fair for both sides.
LEWIS: Look, here's what we think the criteria should be. First, recognize and respect the fact that so many Florida Democrats did come out. By the way, Kiran, both Democrats and Republicans did show up. Hillary Clinton actually got 100,000 more votes on the Democratic side with no campaigning in Florida than John McCain got on the Republican side and he was in there campaigning.
So Democrats and Republicans showed up. Let's remember and recognize the people who did show up and appreciate that they thought they're votes should be counted.
Second, any other additional process if one is to be considered, has to have -- can be supported by the Democrats in those states. It has to be fair and it has to be accessible.
And, third, we've got to keep in mind that we need both those states in the fall. Come November, we're going to want the votes in Florida. We're going to want the votes in Michigan. I want to be sure -- our campaign wants to be sure that we are working with Florida and Michigan Democrats every step of the way.
CHETRY: Michigan, you know, Senator Barack Obama wasn't even on the ballot in Michigan. So that's a tough one to argue as well. I mean, does it seem to make sense that some sort re-voting process takes place whether it's mail-in or whether it's another avenue?
LEWIS: Well, actually, Senator Obama took his name off the ballot. Senator Clinton allowed her name to stay.
CHETRY: Right.
LEWIS: Neither of them campaigned but there was a very strong uncommitted campaign that was waged by supporters of Senator Obama. So I don't think voters were too much doubt about what was happening in Michigan. But as I say, the rules -- I think the criteria I just suggests to do apply. Respect what's happening in those states.
Recognize that any process that we call Democratic has to be Democratic with a small 'd' as well as a big 'D' that means it has to be fair, and accessible and open. And, three, we need those states in the fall.
CHETRY: You know, Dick Morris, a former adviser to President Clinton now, somebody who criticizes the Clintons a lot, especially Hillary, say that Senator Clinton's campaign is essentially over because of the delegate count.
He said that, by his calculations, she can't get within 60 delegates of Barack Obama and that if she continued on with this, it would have a detrimental effect on the party and maybe stigmatize it among African-Americans. How would Senator Clinton justify winning a nomination that's not based on getting the majority of the delegates?
LEWIS: Well, I just say I stopped paying attention to Dick Morris when he widely predicted in 2000 that Hillary Clinton would never run for the Senate or if she did, she couldn't possibly win. You might factor that in mind when you consider his predictions.
And second, having campaigned for Senator Clinton in Ohio and Texas for the last two weeks, looking at the strong supporters and surrogates we have had out there for her among the African-American community.
Everyone from, you know, former congressman and Mayor Ron Dellums of Oakland, California. Congresswoman Sheila Jackson Lee of Texas, Congresswoman Tubbs Jones of Ohio. Wonderful members from New York like Congressman Charles Rangel. She has supported the African- American community. She has worked with them for years and she will continue to do so. CHETRY: But is he wrong about the delegate count. That she can't get within 60 delegates and then how could she justify trying to bring some of the super delegates over to her side?
LEWIS: First, the rules of the Democratic Party are that every delegate vote counts the same. We intend to live up to those rules.
CHETRY: In this "Sunday Times," Barack Obama supporter and also former presidential contender himself, Bill Bradley said this about the Clinton campaign. "The bigger the lie, the better chance they think they've got. That's been their whole approach. She's going to lose a whole generation of people who got involved in politics believing it could be something different."
Does that perception, perhaps going negative on Barack Obama, even if it comes back to haunt in the general election. Alienate or risk alienating Democratic voters.
LEWIS: I think that kind of language from supporters of Senator Obama or anyone else risks alienating voters. Let me say, people who are listening to Hillary Clinton know when she says she's for universal health care; she will fight for universal health care. When she says she's for turning the economy around and strengthening the middle class; she's going to turn the economy around and strengthen the middle class. When she says she's for ending the war in Iraq and bringing the troops home, she is going to end the war and bring the troops home.
She means what she says. She acts on what she says. That has been her record in public life. I think it's truly unfortunate to hear these kinds of harsh, personal statements being thrown around by supporters of the other candidate.
CHETRY: Let me ask you about the dream team so we can end on some consensus. There has been a lot of excitement over this potential that perhaps Hillary Clinton and Barack Obama could come together. Would she be willing to come together as the vice presidential nominee, if that's helping shake out going forward.
LEWIS: I think if you've heard Senator Clinton says she knows there's a lot of excitement about the dream team. But the good news for Democrats is we are excited. We got a lot of talent. We got a lot of voters come out. And that's what this process is all about.
CHETRY: Ann Lewis, great to see you as always. Senior adviser to the Clinton campaign. Thanks for talking with us this morning.
LEWIS: Thank you.
ROBERTS: So, was that a yes or a no? By the way, I missed that in there.
She worked as a television extra eight years ago. An old footage of her recently popped up in Hillary Clinton's red phone ad. The 3 a.m. ad. There she is. She's one of the sleeping kids. But who does she support now? Casey Knowles joins us live, just ahead here on AMERICAN MORNING.
Coming up on AMERICAN MORNING, a real life Robo-cop. The homemade crime fighter that's armed and some say, dangerous.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: By using this water gun, you're actually assaulting. You're breaking the law.
UNIDENTIFIED MALE: I'm not assaulting anybody. I mean, you know, if you're on the sideway, I'm not bothering you. If you're on my private property, I'm going to bother you.
(END VIDEO CLIP)
ROBERTS: Rusty Dornin looks at what one man is doing to clean up the neighborhood, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Coming up at 25 minutes after the hour. It's a homemade twist on the neighborhood watch. One man using a crime- fighting Robo-cop to watch for what he says are troublemakers in his neighborhood. Is he keeping neighbors safe or is he going too far?
CNN's Rusty Dornin caught up with the inventor of this Robo-cop.
(BEGIN VIDEOTAPE)
RUSTY DORNIN, CNN CORRESPONDENT (voice-over): It's midnight on the street of Atlanta. Bar owner Rufus Terrill is on patrol with his crime-fighting partner, one Terrill created himself. He calls it "Bumbog." To others, he's Robo-cop.
ROBO-COP: You need to leave the property.
DORNIN: At night, this is a hangout for drugs, prostitution, and the homeless. By day, a preschool. Lydia Meredith runs the day-care center.
LYDIA MEREDITH, DAYCARE OPERATOR: This whole square is enveloped with homeless people and drug dealers. Defecating, urinating, prostituting. The whole nine yards.
DORNIN: Since Terrill is on day care board, he decided to take matters into his own hands. He mounted a chicken smoker on a three- wheeled scooter, covered it in black rubber. But if you're up to no good, a lot more than that.
RUFUS TERRILL, BAR OWNER: This is your public address system. Testing, one, two, three. This is infrared camera. It's got what we call water cannon. It's like a super-duper Super Soaker.
DORNIN: Terrill says he only soaks the extremely stubborn.
TERRILL: It's awfully cold out here tonight.
DORNIN: But is he is going too far? Some people might say you're a vigilante. I mean, the police are saying that by using this water gun, you're actually assaulting. You're actually breaking the law by using...
TERRILL: Well, I'm not assaulting anybody. I mean, you know, if you're on the sideway, I'm not bothering you. If you're on my private property, I'm going to bother you.
DORNIN: Terrill says most of the time he just turns the spotlight on and people scatter. But homeless advocate, Anita Beatty, who runs the nearby shelter has a problem with Robo-cop.
ANITA BEATTY, HOMELESS TASK FORCE: I just think the whole Robo- cop, spraying people is a little freaky. We really need some police protection in this neighborhood.
DORNIN: Bar patrons say they've seen a difference.
UNIDENTIFIED FEMALE: It does scare people and to be honest, I'm grateful for it.
DORNIN: It doesn't always scare people.
ROBO-COP: This is private property, guys.
DORNIN: But Terrill says his robot helps fill a void when the cops aren't around.
Rusty Dornin, CNN, Atlanta.
(END VIDEOTAPE)
ROBERTS: But Terrill insisted he's not just out to get the homeless with Robo-cop, he says he is out to fight crime. Interesting concept.
CHETRY: How about it? Well, you know, this one, too. It's a story we've been talking about all morning. An Associated Press investigation, this is five months in the making, and they are releasing results later today. Found several drugs in the drinking water supply of at least 41 million Americans. Probably even more, because some municipalities aren't required do any testing.
From coast to coast, and may include antibiotics, mood stabilizers, sex hormones, over-the-counter pain medicines. So far, no reports of anybody getting sick. Still, questions though about the long-term implications of these low levels of pharmaceuticals in the water we drink every day. Utility companies are insisting the water is safe. The EPA saying that further studies need to be done.
That brings us, though, to this morning's "Quick Vote" question. Will you change your drinking water habits because of the study? Right now, 64 percent of you were saying yes; 14 percent say, no, I'm not that concerned; and 23 percent say no, because it doesn't seem there's anything I can do about it. Cast your vote, cnn.com/am.
And we've been asking people to weigh in about this. Ellie from Vermont writes I live in Vermont and I've been boiling my water for 12 years now. It can be as much as 48 hours before you know your water has contaminants in it, so I decided to be proactive instead of reactive. I do not know if this method helps with the drugs in the water, but at least I feel better doing something instead of nothing.
And we're not sure either. I mean when we talked about, John and I, whether or not if you have a water filter, if that makes a difference. Or what makes a difference. And when we talked to one of the women from the Environmental Defense Fund, she said that it basically just depends on the process. They use as many different processes as to take out impurities. Some may catch it, some may not.
ROBERTS: You know, it certainly might be worth the test to get much of water filters together and take some tap water and run them through, and then get a lab to analyze them and see what's left at the other end.
CHETRY: Yes. And meanwhile, the other thing is, are you any safer with bottled water? There are some who wrote to us and said, well, what does that mean about bottled water because some bottled water has --
ROBERTS: Just tap water, right?
CHETRY: It's ultra-filtered tap water. Well, keep the e-mails coming. Our address is am@cnn.com. We'll keep reading them throughout the morning.
ROBERTS: The country's largest mortgage lender in more trouble this morning. Why? The feds are knocking on its door. Our Personal Finance Editor Gerri Willis joins us, coming up next.
And she was seen soundly sleeping in Hillary Clinton's controversial red phone ad. Now she's up and awake and all grown up and old enough to vote this November, and surprised that this old footage made its way on the campaign trail. So who does she support? We'll ask her when she joins us live, next on AMERICAN MORNING.
(COMMERCIAL BREAK)
JOHN ROBERTS, CNN, ANCHOR: Wow. Interesting photo this morning from Dallas. It looks like it's straight out of a movie.
KIRAN CHETRY, CNN, ANCHOR: you can't see the top of the buildings.
ROBERTS: Expecting Harrison Ford to fly out there in flying cars. This looks very "Blade Runner"-ish this morning. Not a great day there in Dallas this morning. 54 cloudy, going up to 59. Lots of rain in the forecast as suggested by that low hanging cloud this morning. CHETRY: Yes. There you see it. Wow. Well, some more trouble this morning for the nation's largest mortgage company. The FBI now saying it will start investigating Countrywide Financial. So, what does that mean for the company that writes one out of every five American mortgages? CNN's personal finance editor Gerri Willis has more on our financial security watch.
You know, you're talking about the FBI. You're talking criminal now.
GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: Yes, this is upping the ante here, I think. The FBI is investigating Countrywide issue, did Countrywide misrepresent the loans in the company's status in corporate filings? Now, Countrywide and other mortgage lenders here, no stranger to investigations. There are some 60 investigations going on right now, many of them attorney general investigations focusing on Countrywide in California, Illinois and Florida. Countrywide had nothing to say this weekend. They were silent. We tried to reach them, but it is an interesting change in what's going on in the story, Kiran.
CHETRY: And we also had Countrywide CEO testifying in front of Congress as well, what are they trying to figure out from him?
WILLIS: Well, Congress is very interested in CEO pay and there were three executives grilled by congressional subcommittee last week on pay. Mozilo, the Countrywide CEO was one of them.
(BEGIN VIDEO CLIP)
ANGELO MOZILO, CEO, COUNTRYWIDE FINANCIAL: I'd like to address specific questions related to both my compensation and the exaggerated reports concerning my severance. I am receiving no severance or change of control payments whatsoever. I waived any and all severance in addition canceled the consulting agreement included in my contract.
(END VIDEO CLIP)
WILLIS: All right. So, there you see it. The Countrywide CEO, Angelo Mozilo. We also found that the company defending his CEO pay, but what's interesting here, Kiran, is that he had taken out $132 million in stock sales. He sold stock over time. You know, the SEC watches this very, very closely because they don't want chief executives to trade on inside information. What's interesting about this, the company changed its rules on how he could cash out of that stock twice. This allowed him to sell more than he otherwise might have been able to sell and make more money. Now, Mozilo is right when he says, you know, hey, I gave back some of this compensation, but he made $132 million in stock sales. That issue now under investigation by the Securities and Exchange Commission, could be a part of this FBI probe as well.
CHETRY: In the meantime, as you pointed out, one in five people have a mortgage written by Countrywide. Should you be worried if you have a Countrywide mortgage? WILLIS: You know, Countrywide has been bought by Bank of America and they haven't been talking about these issues either. So, at end of the day, they're going to be responsible for this. They're keeping the branding. So, I don't think if you have a loan right now, you have to worry about it. If you're in a situation where you are re- financing into another loan, you might look at all options out there but I have to tell you Countrywide is very aggressive in this market right now. They're making lots of offer, out there, lots of really attractive ones at that. I spoke to one source in the industry over the weekend about this very story. They're complaint about Countrywide was that salesmen were in charge of the credit policy. That is, saying yes or no to potential borrowers. And he said that was wrong.
CHETRY: All right. Gerri Willis, thank you.
WILLIS: My pleasure.
CHETRY: John.
ROBERTS: It's 36 minutes after the hour. To politics now, Senator Hillary Clinton aired this memorable campaign ad before the crucial Texas and Ohio primaries.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's 3:00 a.m. and your children are safe and asleep, but there's a phone in the White House, and it's ringing. Something's happening in the world. Your vote will decide who answers that call. Whether it's someone who already knows the world --
(END VIDEO CLIP)
ROBERTS: Well, the little girl shown prominently in the ad is mostly grown up now and says that she wants Senator Barack Obama to answer that 3:00 a.m. phone call. Joining us now to talk about the ad, is high school senior case Casey Knowles from Washington state. Good to see you this morning.
CASEY KNOWLES, GIRL IN CLINTON AD BACKS OBAMA: Great to be here.
ROBERTS: So, explain for folks at home how you ended up in that footage in the first place? We should point out it's about eight years old?
KNOWLES: Right, when I was younger my family got involved in tiny local little acting jobs. We'd be in a commercial, like in the background or in a movie in the background, and on this occasion we worked for a railroad company that took that footage you see in the Hillary ad. They sold it to Getty Images and then anyone can buy it, and --
ROBERTS: So, you're looking just for some generic footage to throw into a campaign ad? You just go to them and buy it.
KNOWLES: Yes. They don't have to hire actors. ROBERTS: So, did you know that you're going to end up in this ad?
KNOWLES: Oh, no. Not at all, complete surprise.
ROBERTS: So, how did you find out about it?
KNOWLES: We found out when we were watching "The Daily Show with Jon Stewart." He was parodying the ad, kind of making fun of it. My brother is like, is that Casey? Is that the footage from Getty Images? And sure enough, it was the footage we had seen and...
ROBERTS: And what was your reaction when you first saw it?
KNOWLES: I was completely shocked. I thought it was so funny, because I've been so avidly supporting Obama throughout all this, and I felt a little disloyal.
ROBERTS: You say that first became a fan of his in 2004. Which would have put you at about 14 years old.
KNOWLES: Yes.
ROBERTS: That's awfully early to be getting involved in politics. What was it that attracted you to him/
KNOWLES: Just the way he spoke about hope and change and just really turning this country around to a new direction and a new state of mind.
ROBERTS: In fact, you were so involved with him, in his campaign, that earlier this year on February 9th you were a precinct captain during the caucuses.
KNOWLES: Right.
ROBERTS: What was that experience like?
KNOWLES: That was incredible. I actually led my precinct of about 50 adults through the caucus process. I've been very involved in that caucus process, and I actually became a delegate as a result of that, and I will be a delegate for my precinct and I might go on to county, state and even potentially the national convention as supporter of Obama.
ROBERTS: Wow. That's pretty heavy stuff for a 17-year-old.
KNOWLES: Yes.
ROBERTS: You know, we talked to the youngest delegate in America a 21-year-old fellow. Might that be something that you'd look forward to doing in 2012?
KNOWLES: That would be incredible.
ROBERTS: Yes. So let me ask you this question. You're an avid supporter of Barack Obama, precinct captain and all of that, that ad, that 3:00 a.m. ad, many people say was what turned the corner for Hillary Clinton in Texas and Ohio. Obviously, had you no control over the footage, but how does it make you feel that a performance that you put in all that time ago may have been somehow responsible for taking a victory away from the guy you're supporting?
KNOWLES: Right. Like I said it makes me feel a little disloyal and kind of -- it hurts that footage of me would contribute to a candidate that I'm not necessarily supporting. Hopefully Mr. Obama would forgive me.
ROBERTS: Well, as I said, there's nothing you could do about it. It was just stock footage that they bought. Might you be planning something with the campaign to try to use your influence for you know, a positive purpose in his campaign?
KNOWLES: Well, I've talked to the Obama campaign and I kind of joked in an earlier interview that we should make a counter ad. But I of course was joking.
ROBERTS: But?
KNOWLES: I've talked to them and let them know I'm really interested in becoming a more vocal supporter. Anything they have in mind, I'm totally willing to help in any way I can.
ROBERTS: And what did they say about the idea?
KNOWLES: Well, because I live in Washington state, Oregon's primaries are coming up on May 10th, I believe. They want to get me down there and hopefully get me to help support and get campaigning going on down there.
ROBERTS: Wow. And you say that you're taking a government class?
KNOWLES: Yes.
ROBERTS: In your senior high school year?
KNOWLES: I'm in Mr. Frederick's A.P. government class.
ROBERTS: So, this might count as credit towards that? You think?
KNOWLES: I sure hope so.
ROBERTS: Well, Casey, it's great see you. Thanks for coming in this morning.
KNOWLES: Great meet you. Thank you.
ROBERTS: Good luck with all that, and look forward to seeing more of you.
KNOWLES: Absolutely. ROBERTS: Take care. Kiran.
CHETRY: And how about if all of that comes to pass because she accidentally showed up in a Hillary Clinton ad?
ROBERTS: Yes.
CHETRY: Unbelievable.
ROBERTS: But, hey, I should just ask you while you're here, you got any interest in following through politics yourself?
CHETRY: In college, I really want to major in international studies, human rights is a passion of mine.
ROBERTS: I mean, are you going run for anything?
CHETRY: We'll see. I'd love to work for the U.S. That would be ideal for me.
ROBERTS: There you go. All right. Casey, thanks.
KNOWLES: Thank you.
CHETRY: She may be getting a lot of e-mails. You never know.
Well, important news this morning for allergy sufferers. There are new guidelines for diagnosing just what it is that's making you sniffle and sneeze.
Also, she's no guitar hero but she's going to rock out at the "Rock and Roll Hall of Fame" tonight. Madonna, getting set to be inducted. Our Lola Ogunnaike take as look ahead on AMERICAN MORNING.
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ROBERTS: Coming up on 45 minutes after the hour. Rob Marciano is tracking extreme weather there in Atlanta. That big snowstorm that hit Ohio yesterday just kind of evaporated but we got some cold temperatures here in New York and of course, a lot of people are wondering just when is spring coming?
ROB MARCIANO, CNN, METEOROLOGIST: Yes. I couldn't get there soon enough, for folks in Ohio with the record amount of snow they've seen there as well. Nine days, about 17 hours, that's when we expect to arrive. It will come March 20th, 9:00 in the morning Eastern time. I believe March 19th, I guess, on the west coast. Not coming soon enough. Certainly a cold winter in many spots. Mostly the Great Lakes and the Midwest and Ohio over the weekend, getting record amounts of snow, upwards of 20 inches in spots.
Check it out. Columbus, Ohio, reporting a record 20.5 inches. Dayton got over a foot. Aurora, Indiana, got a foot even. Typically, they don't get that much at one time with a storm and you got the winds that were blowing at blizzard strength, too. All right, now, we got a record snow pack not only across parts of Ohio but also across parts of Wisconsin. And then we've got, I think some warming air here, today and tomorrow. Kind of return flow around this. Cold there, and that could result in some of this snow pack melt and some of the rivers, with some ice jams, resulting in some river flooding across parts of Illinois. Showers across parts of Texas today and some showers and wind expected from Seattle to Portland as our Pacific storm begins to roll into British Columbia. Nine days, John. Nine days left.
ROBERTS: Can't wait. Just can't wait. Rob, thanks very much. Kiran.
CHETRY: Well, there are some new guideline speaking of winter being over. Spring coming right around the corner, and that could mean allergy season for some. But there are some new guidelines to determine what exactly you're allergic to. Medical correspondent Elizabeth Cohen joins us now from Atlanta with more details on this. I remember the old days of being tested, where they made that grid on your arm and sort of pricked you with all of the different allergens to see what bumps formed.
ELIZABETH COHEN, CNN, MEDICAL CORRESPONDENT: Right. They don't really do that as much as they used to anymore, Kiran. And the reason is that those test was often yielding the wrong results. They were telling people that they didn't have an allergy when they did or sometimes telling people that they did have an allergy that they didn't. So, part of these new guidelines that are coming out are about how to be a more empowered patient, a smarter patient, and help your doctor get your allergy diagnosis right.
So let's look at three things that you as a patient can do to help your doctor get it right. First of all, when you get an allergy test, make sure that you're getting an IgE test and not an IgG test. The IgG test is not going to help you but our experts tell us that some doctors are still doing it, for some reason. Also, you really ought to question some test results. If, for example, a result says that you're allergic to shellfish and you've eaten shellfish many, many times and have been fine, you might be right, and the test might be wrong. Also, if you go to your family doctor and they prescribed sort of your first line kind of run of the mill allergy drug and it doesn't help you, you really need go to a board certified allergist, that board certified part is very important. They can do these more complicated tests to try to figure out exactly what you are allergic too. Kiran.
CHETRY: And do allergies change throughout the year, can you suddenly become allergic to things as you age or move locations?
COHEN: Oh, absolutely. All of those things can happen, Kiran. Our immune systems are changing all the time. So, very often kids might be allergic to something and then grow out of it. So it is changing all the time, and what's great is there's new technology that is much more likely to get it right, it's much more likely to get it exactly what you're allergic to.
CHETRY: All right. Some good news, then. Thanks a lot, Elizabeth. COHEN: Thanks.
ROBERTS: CNN NEWSROOM is just minutes away now. Tony Harris at the CNN Center with a look at what's ahead. Good morning to you, Tony.
TONY HARRIS, CNN, ANCHOR: Hey, John. Good morning to you. Good morning, everyone. We've got these stories on the NEWSROOM rundown for you -- the talker of the morning, that's for sure. What's in your water? An Associated Press investigation says traces of drugs? How concerned should you be?
College student killings today. One suspect goes to court in Alabama while North Carolina search for their man.
And secret stash, a secret no more. $30,000 found in a pile of donated clothes. Breaking news when it happens right here in the NEWSROOM. We get started just 12 minutes or so away, top of the hour right here on CNN. John, back to you.
ROBERTS: Looking forward to that Tony. Good to see you back on Mondays, too, by the way.
HARRIS: Thank you, thank you so much, John! Good to be here. My goodness.
ROBERTS: She has got the moves but Madonna's hall of fame induction is causing a commotion. Whether she is rock and roll worthy or not. Next on AMERICAN MORNING.
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ROBERTS: Well, she might belong in the fitness hall of fame, but does she belong in the rock and roll hall of fame? Alice Cooper, isn't in? Neither is KISS? Steve (inaudible) also on the waiting list. But today Madonna will be inducted into the rock and roll hall of fame, on the very first ballot. Many purists say like a lot of bands before her, she is way too pop to rock. Our Lola Ogunnaike has got a look at material girl's credentials. So, does she qualify as a rocker and, therefore, should she be inducted into the rock and roll hall of fame?
LOLA OGUNNAIKE, CNN, CORRESPONDENT: Well, John, Madonna is unabashedly pop. But one thing she did do is re-invent what it means to be a modern day rock star. And I think for that reason alone she deserves to be nominated, to be inducted. This woman has had staying power. She's going to be 50 in August. She's been around for decades. Her contemporaries have long since gone. Cindy Lauper, anyone, Jody Watley, anyone. Also, the idea of video. I mean, this woman made a video an event. Only Michael Jackson is her contemporary, her peer in that regard. And the idea of a reinvention always coming back with something new. I mean, we've seen East Village punk Madonna, we've seen Gaultier muse with the coned bra Madonna. We've seen Evita Madonna. We've seen disco queen Madonna. And you know, when you see Evita Madonna. There have been so many incarnations of Madonna and she's really taught people how to remain relevant. So, for all of those reasons and more I think she deserves to be in there.
ROBERTS: And when you look at the shape she's in too. She really is the embodiment of this idea that 50 is the new 25.
OGUNNAIKE: Absolutely. Yes. She embodies that also. Geisha, Madonna. My favorite. You can't forget that.
ROBERTS: Well, you know, if you look over the histories of the rock and roll hall of fame, people like Brenda Lee, Myles Davis had been inducted in. Leonard Cohen is in there, while he's had a couple of really good hits with "First we take Manhattan" and "Suzanne" doesn't really qualify, "as rock?" What about some of the other inductees this year?
OGUNNAIKE: Well, some of the other, most of the other inductees do qualify as rock. You got John Cougar Mellencamp. Leonard Cohen, he's a folk singer. But again, these nominees, they are inducted, they are voted on by a group of 600 of their peers. Industry luminaries, they've seen them fit to be inducted. Michael Jackson has been inducted. Marvin Gay has been inducted. So, it's very loose. It's not necessarily just rock 'n' roll, it's people contribution into the music form. And clearly if Michael Jackson is in there, Madonna deserves to be in there too. But also Leonard Cohen is being inducted, the Ventures are being inducted and Dick Clark Five, one of the biggest groups of the British invasion also being inducted.
ROBERTS: "Wipe out" is the first thing I learned to play on the drums, and that was back when the song was new.
OGUNNAIKE: Well -- Madonna also, "Like a Virgin" one of my first hits that I'd ever heard of, danced around with it with my lace glove all the time. So, different reference but music spans the decades, right, John?
ROBERTS: Yes. I mean, you know, I'm cutting her a break. I think if anyone belongs in it, she does, because of her contribution to you know, "feel the music" marketing. She's such a huge star. How do you ignore here?
OGUNNAIKE: Also, and the idea of courting controversy. Her sex book, making out with Britney, Christina Aguilera. You know, "Like A prayer, " praying to a black Jesus. In 2006, she just hung herself from a mirrored cross. This woman is still, all the ideas that we take for granted today she sort of put out there in the '80s and continued to manipulate them.
ROBERTS: And rock is if nothing else supposed to be controversial, she qualifies on that front. Lola, thanks very much. We'll be watching.
OGUNNAIKE: Thank you.
ROBERTS: Kiran.
CHETRY: Glad we settled it all here. No one has to ask the question anymore. She deserves to be in it. All right. Thanks guys. Well, here's quick look at what CNN NEWSROOM is working on for the top of the hour.
HARRIS: See those stories in the CNN NEWSROOM. Traces of drugs in your drinking water. A new report prompts concern.
The man suspected of killing a college student in court today after his mother offers an apology.
Drink special outrage. A wetback Wednesday far from ocean goes flat.
And how far has the dollar dropped? Our Richard Quest runs out of money in Germany.
NEWSROOM just minutes away at the top of the hour on CNN.
(COMMERCIAL BREAK)
ROBERTS: Final check of this morning's "Quick Vote" question. We have been telling you about a new Associated Press study that says the drinking water supply for 41 million Americans has trace amounts of pharmaceutical drugs in it. So, we asked, would you change your drinking water habits because of this study? 64 percent of you said yes, 14 percent said, no, I'm not that concern and 22 percent said can't change anything because there's nothing I can do about it. For those of you who voted, thanks very much. We'll do it again tomorrow.
And thanks so much for joining us on this AMERICAN MORNING. See you again tomorrow.
CHETRY: Glad you're with us. And we'll be back again tomorrow, same time, same place. Meanwhile, CNN NEWSROOM with Tony Harris and Heidi Collins starts right now.
HARRIS: And good morning, everyone. You are in the CNN NEWSROOM. I'm Tony Harris.
HEIDI COLLINS, CNN, ANCHOR: Hi, there everybody. And I'm Heidi Collins. Watch events come into the NEWSROOM live on this Monday morning, March 10th. Here's what's on the rundown now.
The battle for Democratic delegates shift to Mississippi, the delegates from some previous fights, are still missing in action. We'll talk about it.
HARRIS: Concerns on tap. An Associated Press investigation reveals traces of drugs in your water. Is your health in danger?
COLLINS: And new developments in the killings of two college students. One suspect caught. Another caught on camera, in the NEWSROOM.
What is in your drinking water?
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