Return to Transcripts main page

CNN Newsroom

IndyMac Bank Failure; Goodbye, Yankee Stadium; Religion and the Election

Aired July 13, 2008 - 17:00   ET

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

WHITFIELD: Up next in THE NEWSROOM the blame game begins after what could be the most expensive bank failure in history.
And what do Brad, Angelina, naked protesters, and Brett Favre have in common? Well, they're all part of the chat room.

But first, it's the NEWSROOM and that's where you're in right now. I'm Fredericka Whitfield. Welcome.

Issue number one: The FDIC is trying to reassure thousands of nervous IndyMac customers shaken by their bank's collapse on Friday. The California-based lenders is under government control now. And it reopens tomorrow. An FDIC official is now CEO of the new IndyMac Federal Bank. Last hour, he set the bank's road map for the immediate future.

(BEGIN VIDEO CLIP)

JOHN BOVENZI, INDYMAC FEDERAL CEO: IndyMac Federal Bank now has the complete support of the FDIC. It is a strong and a safe institution. Come Monday morning, it will be business as usual for all insured customers.

(END VIDEO CLIP)

WHITFIELD: Well, the CEO has much more to say, John Bovenzi does. And, in fact, Rick Sanchez will have an opportunity to speak exclusively with John Bovenzi, the new CEO of IndyMac now federal bank as it sets to open up tomorrow. Tune in for that at 10:00 o'clock Eastern, this evening.

Meantime, the FDIC has set up this toll free number if you are an IndyMac customer and perhaps you want some more information about your money -- 1-866-806-5919. It will be up and running daily from 8:00 a.m. to 8:00 p.m. Pacific Time.

So, how does the government takeover of IndyMac impact you and your finances? CNN senior business correspondent Ali Velshi joins us now live via phone.

So, Ali, your take on the FDIC's plan for IndyMac.

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT (through phone): Well, here's the thing, Fred. The damage that was going to be done has been done. If you are an IndyMac customer, if you have a mortgage with them, nothing changes, you continue to pay your mortgage. If you have deposits with them that were under $100,000 in a regular account or $250,000 in an IRA, you're also safe. You've got full access to your money starting tomorrow morning. You can still use ATMs and checks tonight.

The issue is that there might be up to 10,000 IndyMac customers who had more than that amount. Now, those amounts are the amounts that are insured by the Federal Deposit Insurance Corporation which has taken over the bank. Those are the people who might have some trouble. They'll get half of the extra, half of the amount above the $100,000 that they had in the account. They might get the rest later.

And that's the lesson really for everybody else across the country is that if there is some danger of a bank failing, it's not a big deal. They don't tend to be a lot of them failing, you get your -- you are insured up to $100,000 per deposit. That's the big deal right now.

There are 90 banks on the FDIC problem list. Many of them are small banks. They don't necessarily expect them to fail. But this was a big one. It wasn't necessarily that much of a surprise. The bank had been failing for some time; it was just sort of the final straw on Friday night.

WHITFIELD: All right. So, knowing that there are about 90 banks out there and we still have yet to know exactly which banks those are that are on this problem list. What kind of precautions, what possibly is taking place right now to protect them from taking the same road that IndyMac did?

VELSHI: Well, this is part of the reason we don't know the names of those banks, because the FDIC doesn't want to panic people into taking all of their money out, at which point the bank wouldn't -- the something happened to IndyMac. There were rumors that it was in trouble, people took the money out and then the bank did not have enough reserves to actually operate as a bank and they had to go into the situation that they're in. That's why the FDIC doesn't want to release those names. We are trying to get them however.

For the average viewer, what you need to do is make sure that your money is spread out. There are a lot of banks that pay extra interest for you to keep more than $100,000 in an account, you shouldn't. If you've got more than $100,000, spread it out in different accounts at different institutions.

WHITFIELD: All right. Ali Velshi, thanks so much for breaking that down for us and hopefully comforting of those IndyMac customers. So, of course, there's a lot of finger-pointing going on to who is to blame for IndyMac's billion-dollar meltdown. The buck passing, well, it's already underway.

CNN's White House correspondent Ed Henry follows the flurry of the finger-pointing in Washington.

(BEGIN VIDEOTAPE) ED HENRY, CNN WHITE HOUSE CORRESPONDENT (voice-over): Panic after California-based IndyMac Bank went under, one of the biggest bank failures ever.

UNIDENTIFIED MALE: The bank will not reopen (INAUDIBLE).

UNIDENTIFIED FEMALE: I came to close my account.

HENRY: Senate Banking Chairman Chris Dodd told CNN he wants answers about why federal regulators didn't sound the alarm bell sooner.

SEN. CHRIS DODD, (D) CONNECTICUT: A weak regulation, cops not on the beat, and out there and you had brokers marketing products that were called liar's loans, deceptively drawing people in to mortgages they couldn't afford.

HENRY: Deposits up to $100,000 will be covered by the Federal Deposit Insurance Corporation. But the economists are worried about the ripple effect. Consumers already smacked by high gas prices are now fearing the safety of their life savings at dozens of other trouble banks all across the country.

TERRY CONNELLY, GOLDEN GATE UNIV. SCHOOL OF BUSINESS: The mattress (ph) is looking pretty safe these days in terms of a place to keep your money. And, I think, that effect on the economy overall is not going to be helped here by one of these institutions coming to this sort of an end.

HENRY (on camera): But officials at the FDIC caution against overstating the broader problem. They point out that in the '80s and '90s, there were about 200 bank failures a year. This year, there are already been five banks that collapsed, troublesome but not necessarily a full scale crisis.

(voice-over): Regulators point the finger at Senator Chuck Schumer for a June letter raising questions about IndyMac's health, which allegedly sparked the run. Schumer fired back that regulators were asleep at the switch and are deflecting blame.

SEN. CHARLES SCHUMER, (D) NEW YORK: IndyMac pushed the edge of the envelope just like Countrywide. They did all kinds of profligate and bad processes, and they shouldn't have been clamped down on much earlier.

HENRY: Schumer added, federal officials are now blaming the fire on the guy who dialed 911.

Ed Henry, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: And we've heard a lot about the FDIC lately, but what exactly do they do? The Federal Deposit Insurance Corporation basically is the safety net for the nation's banking system.

CNN's Deb Feyerick reports. (BEGIN VIDEOTAPE)

DEB FEYERICK, CNN CORRESPONDENT (voice-over): Many IndyMac customers who are searching for answers this weekend heard this recording, alerting them someone new was in charge of their money.

(BEGIN AUDIO CLIP, FDIC RECORDING)

ANNOUNCER: As conservateur, the FDIC will operate the IndyMac federal bank to maximize the value of the institution while maintaining banking services in communities served by the bank.

(END VIDEO CLIP)

FEYERICK: The FDIC was put in charge on Friday after regulators announced, IndyMac could not meet the demands of its depositors, calling the mortgage lender's conditions -- unsafe and unsound.

BEVERLY GOODMAN, SENIOR EDITOR, SMARTMONEY MAGAZINE: The best news is for the individuals that have money at these banks when the FDIC steps in, their money is then secure. It's much worse news for the economy in general.

FEYERICK: The Federal Deposit Insurance Corporation was created in 1933 in response to the Great Depression when thousands of banks failed. In order to limit the effects on the economy, banks pay insurance premiums to the FDIC so a portion of your money is always protected. Beverly Goodman is with "Smartmoney" magazine.

GOODMAN: The FDIC is insurance. It's the government's guarantee that you will not lose your money.

FEYERICK: Experts say the FDIC will run the bank as is. Customers will have access to much of their money and those with loans will still have to pay on time.

DAVID BARR, FDIC SPOKESMAN: This is very manageable. It's an excellent example of how the FDIC operates, that when a bank gets in trouble, how we come in to protect the depositors.

FEYERICK: Meantime, the FDIC will look for a buyer.

CHRIS ISDORE, SENIOR WRITER, CNNMONEY.COM: The FDIC is hoping to sell the bank pretty much as an intact unit to a larger bank, sometime in the next three months. That's going to be somewhat more difficult sale now it's gone through the failure.

FEYERICK: Ninety banks are on an FDIC risk list. But the agency is confident its fund is large enough to cover any additional bank failures. If not, the spokesman says the FDIC could always raise premiums.

Deb Feyerick, CNN, New York.

(END VIDEOTAPE) WHITFIELD: Continuing coverage of the IndyMac meltdown is coming your way. CNN's Kara Finnstrom introduces us to one of the big losers from this bank's failure. That's later on this hour right here in the NEWSROOM.

And tomorrow, the Federal Reserve will consider new tougher regulations for mortgage lenders as a whole. The record number of the home foreclosures is the primary reason behind the proposed crackdown. But the plan has both supporters and detractors. Consumer advocates say the revamp rules aren't strong enough. Lenders say the new regulations will make it tougher for their customers to secure a home mortgage.

Some of the propose changes include barring lenders from making loans without proof of a borrower's income. They're also looking to curtail misleading ads for many types of mortgages. The fed could also bolster financial disclosures to borrowers.

Well, if you are still undecided about a presidential candidate -- check out this campaign.

(COMMERCIAL BREAK)

WHITFIELD: All right. Democratic presidential candidate Barack Obama is stumping today in the state with the most electoral votes, California. Just about an hour ago, he wrapped up an appearance at a Latino convention. Senator Obama took on his Republican rival John McCain on immigration, accusing him of abandoning comprehensive reform.

Well, this morning, Obama spoke via satellite to a too teacher's convention meeting in Chicago, promising education will be a priority in his administration.

(BEGIN VIDEO CLIP, AFT)

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: John McCain is an honorable man and I respect his service to our country, but he won't even get us to that starting point. For someone who has been in Washington nearly 30 years, he's got a pretty slim record on education.

And when he has taken a stand, it's been the wrong one. He voted against increase funding for No Child Left Behind to preserve billions in tax breaks for the wealthiest Americans. Tax breaks he wants to extend without saying how he'll pay for them.

(END VIDEO CLIP)

WHITFIELD: Senator McCain, in the meantime, is off the campaign trail today, spending some down time at home in Arizona. However, tomorrow, he hits the road. He'll be speaking to the same Latino convention Senator Obama did today. It is the third time in two weeks senators McCain and Obama have talked to Hispanic groups, both working very hard to win over that key voting bloc. Meantime, her husband is on the road in his "Straight Talk Express" bus, Cindy McCain., well, she may prefer faster set of wheels. We think that's her behind the wheel. She took a spin at the pace car in the Indy race near Nashville yesterday.

And CNN's Brianna Keilar went along for the ride.

(BEGIN VIDEO CLIP)

BRIANNA KEILAR, CNN CORRESPONDENT: Cindy, do you find it interesting that if you were first lady, you would probably be, I imagine, the first one who can say drift racing is a hobby.

CINDY MCCAIN, SEN. MCCAIN'S WIFE: Yes, it'd be fun. If I were first lady, I mean, I don't think about that. It's too much to think about. I would be so honored to do so. But, yes, I guess, I would be the first one who would be, have drift racing as a hobby. My sons and I love it and we have enjoyed the years (ph), we built a car together and we raced it together.

(END VIDEO CLIP)

WHITFIELD: OK, pace car is cool. But, come on, Cindy, I thought you were going to be behind the wheel, drive the pace car. You want to catch Brianna's full report tomorrow on CNN's AMERICAN MORNING. You can do that with John Roberts and Kiran Chetry and get behind the wheel.

All right. A different breed of evangelical Christians is staking a claim this election season. Once solidly Republican, these new evangelicals, they defy the stereotype. And as CNN's Kate Bolduan reports, don't except them to look left or right in November because they will be looking up.

(BEGIN VIDEOTAPE)

KATE BOLDUAN, CNN CORRESPONDENT (voice-over): Call them political misfits, the post religious right or even the next evangelicals. No matter the label, these voters are anything but easy to define.

SHANE CLAIBORNE, AUTHOR, "JESUS FOR PRESIDENT": We found the light of the world. We found the hope of the planet and it burns much brighter than McCain or Obama or America. Amen.

BOLDUAN: Shane Claiborne is the perfect example. We caught with Claiborne, a Christian activist and author on his book tour in Pittsburgh. The title says it all, "Jesus for President."

CLAIBORNE: Over and over, we are hearing things like, "I knew there was more to Christianity than what I saw on TV than televangelists and patriotic pastors and cover our (ph) bishops."

BOLDUAN: He represents a new movement of young evangelical voters. They care about traditional issues like abortion and gay marriage but say their agenda is far broader -- poverty, social justice and the environment are moving to the forefront. UNIDENTIFIED MALE: To the kingdom of the poor and broken.

CLAIBORNE: It's getting harder and harder to find good grease.

BOLDUAN: Claiborne's tour bus even runs on veggie oil.

CLAIBORNE: And it's cheap.

BOLDUAN: In 2004, about 3/4 of evangelical voters supported George Bush, a solid voting bloc political analysts say may not be such a lock this year because of these young evangelicals.

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: The impact is likely to be that they will dilute the evangelical support for the Republican Party and the evangelical vote will be more up for grabs than it has in many years.

AMANDA WIDING, UNDECIDE VOTER: I'm very undecided. I feel it sort of like there are certain issues I identify more with the Republicans and others I identify more with the Democrats.

STEPH WALKER, YOUNG EVANGELICAL: I grew up in a very Republican family but my growth in my faith has kind of led me in a different direction.

BOLDUAN: Back on tour, Shane Claiborne says it's more about how you live your life November 3rd and 5th rather than how you vote on November 4th, Election Day.

CLAIBORNE: What a lot of us are doing is kind to learn from the mistakes of the generation that's gone before us. But we're not going to endorse a candidate or a party. This is not about going left or right but going deeper.

BOLDUAN: Kate Bolduan, CNN, Pittsburgh, Pennsylvania.

(END VIDEOTAPE)

WHITFIELD: All right. Checking CNN's political ticker right now, a new face joins the field of White House hopefuls. She's not a new face to politics but she is to the Green Party -- nominating former Georgia congresswoman Cynthia McKinney as it's presidential candidate. Journalists and activists Rosa Clemente will be McKinney's running mate.

And a White House hopeful tells comedian Bernie Mac to clean up his act. Mac is heard (ph) at an Obama fundraiser on Friday, and one of his jokes drew some boos. It used the word that rhymes with nose to refer to women. And when Senator Obama took to the stage, he gave a quick -- if in good nature, perhaps, rebuke -- a little hand slapping there.

Well, check out more stories from our ticker at CNNPolitics.com -- your source for all things politically.

An odd smell in a motel room led to a heart-pounding find. Plus, a stormy Monday in the forecast according to our Jacqui Jeras.

JACQUI JERAS, CNN METEOROLOGIST: Yes, it smells like rain out there for a lot of people, Fredricka. And not just wimpy rainshowers, we're talking about some heavy downpours. The latest on the storms and what they're going to do to your travel forecast -- Atlanta two inches today. A lot of people are saying hallelujah on that one. We'll have the latest there and the fire conditions and the tropics. So, don't go away.

(COMMERCIAL BREAK)

WHITFIELD: Oh, I know I wish you were there. Bon Jovi is giving a free farewell concert in New York Central Part. But he's not the one going anywhere. So, who is that party for?

(COMMERCIAL BREAK)

WHITFIELD: Let's check news across America now.

The in-laws of a missing North Carolina soldier are defending their son, the soldier's estranged husband. They say he is not considered a police suspect in Holley Wimunc's disappearance. She'd never show up for work on Thursday and her apartment had been set on fire.

(BEGIN AUDIO CLIP, 911 CALL)

UNIDENTIFIED FEMALE: I was at the front desk in the back office. He came over the counter and tried to rape me. He bit my finger. I'm in a guest's room.

(END AUDIO CLIP)

WHITFIELD: A dramatic 911 call in New Jersey after a rape attempt that was captured by a hotel security camera. The young clerk struggled with her attacker for almost a half an hour before breaking free. Police found him hiding in the hallway, he is being held on $1 million bail.

And in Fairfax, Virginia, police are checking out a strange odor at a motel and apparently they found quite the surprise -- 17 exotic snakes stashed in bags in one of the rooms. They included vipers, adders, and cottonmouths, all very venomous. Police think they belong to a well-known collector forced by a new county ordinance to try to get rid of them.

Doctors in California have successfully removed a bullet from this young girl's head. The seven-year-old was hit last week as she played at a Sacramento park. The bullet lodged right under her skin just above the temple. You can see it right there. Well now, the little girl says she is too scared to go to the park anymore. And there are the stitches to prove it.

(BEGIN VIDEO CLIP, WDSU)

UNIDENTIFIED MALE: They're coming!

(END VIDEO CLIP)

WHITFIELD: All right. Well, everybody loves a party, especially in New Orleans. The French Quarter, well, hundreds of people hit the streets there -- as you see right there -- for the second annual of "Running of the Bulls." Yes, they have it in this country, too.

One small difference from the traditional Spanish version -- these bulls are members of New Orleans four female roller derby teams. The object of the day, avoid getting hit by roller girls with whistle bats. Have a lot of fun and not too much harm out there.

All right. Meantime, we want to talk to you about a fire taking place out west, this, in a southwestern corner of Washington State. Apparently, the fire is burning about 30 acres. But it looks worse than it is. It's taking place actually in Mount Adams which is a large volcano there. It is dormant but nonetheless it is a concern because 30 acres are burning there.

You can see the smoke and because of the clear sky, it actually makes for a beautiful shot as well. You can see it pretty clearly. But it's still very unnerving for a lot of folks there who like to enjoy the scenery there and the wildlife and the forestry.

Jacqui Jeras in the weather center, boy, pretty clear view there.

JERAS: Yes, it certainly is.

WHITFIELD: Thirty acres doesn't sound like very much when you talk about the kinds of fires that we've been following there in California, but 30 acres can become bigger and more aggressive, and that is the worry.

JERAS: It certainly is. And it's at a higher elevation, too, Fredricka. So, people, I guess, in Portland can actually see this. And so, some folks were getting a little nervous and like, "What's going on over there at Mount Adams, do we need to be worrying about an eruption?" But no, this is a wildfire. It's not contained right now. And I understand it's moving pretty rapidly.

It's something that we'll be watching, of course, in the upcoming days, but I believe it's at least 11 miles away from anybody. So, there's nothing being threatened at this time other than the forested areas.

A lot of showers and thunderstorms to talk about today. My goodness, if you got in one of these things today, you we were just in a middle of a deluge almost. The rainfall is coming down very heavy with these thunderstorms all across the interior part of the northeastern corridor. Baltimore/Washington, D.C., this is starting to move into your area right now and so be aware of heavy downpours, a lot of lightning. And you might see some localized flooding, this urban flooding likely with these storms.

We've also being seeing a lot of action here across parts of the Deep South. In fact, Atlanta, we've got a live picture to show you. It's still coming down at this time downtown. Low overcast condition, two inches of rain, 1.98 officially at Hartsfield Jackson International Airport. And we'll continue to see that threat of rain through the evening and into tomorrow. But much dryer weather is on the way.

If you're trying to travel at all, today is not a great day unfortunately anywhere across the east because of these thunderstorms. And even though it's OK in Philadelphia, for example, storms are out to your west, so it's blocking any of those westerly flights.

Ground stops here, both the airports of Washington, D.C. as well as Philadelphia. You're looking over an hour now in Newark; in Baltimore, you've got a ground stop as well as Charlotte until 6:00 o'clock, because of these thunderstorms. So, a lot of folks are being impacted.

And, Fredricka, of course, that front moves eastward. So, tomorrow, places like Boston, New York City, again, D.C. and Baltimore, are going to be seeing some problems. So, those business travelers -- sorry.

WHITFIELD: You're going to have to pack a little extra, folks.

JERAS: Yes.

WHITFIELD: All right. Thanks so much, Jacqui. Appreciate it.

All right. Well, they don't call them the "mean streets" for nothing. And when it comes to addressing gang violence, talk is cheap. Meet some young people who are putting in the work.

And, yes, you know it as the NEWSROOM. Well, today, it's also going to be the chat room. Jacqui Jeras will be back and we're going to talk about all kinds of things, from Angelina Jolie to Brett Favre and all kinds of - OK, Favre, I'm sorry. You know, it's spelled Favre (ph) like in French it would be Fauve (ph), I'm sorry, it's Favre. Sorry, Brett. We love you. And so does Green Bay, they want you back. We're going to talk about all that.

But first, all right, with tons of people taking vacations right now it can be a headache navigating crowded airports and boarding overbooked planes. Our Veronica De La Cruz has some tips in today's On the Go segment.

(BEGIN VIDEOTAPE)

VERONICA DE LA CRUZ, CNN CORRESPONDENT (voice-over): Summer is considered to be the busiest season to travel -- and that means overbooked flights. But when a gate agent offers you that voucher in exchange for your seat, you better know what you're getting into.

ERIK TORKELLS, BUDGET TRAVEL: There is such a thing as a free flight, but you have to read the fine print closely to make sure you don't lose it. For all airlines, be sure to check the expiration date. For most airlines, it's a book by date, not a fly by date.

Some U.S. airlines offer round trip ticket while others offer credit for the future flight. Credit is better because you can split up the amount except on United...

DE LA CRUZ: Torkells also said that most airlines let you redeem your tickets online, others will allow you to do so over the phone, by mail, or at the airport.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

FREDRICKA WHITFIELD, CNN NEWS ANCHOR: Setting the ship after it hits rock bottom. That is the new job description of new IndyMac federal CEO, John Bovenzi. He took the job after federal regulators seized the bank last Friday.

Just the last hour, Bovenzi tried to calm the fears that IndyMac is a sign of things to come for the industry.

JOHN BOVENZI, FDIC COO: Some banks fail but many who are suffering problems because of difficult financial conditions turn themselves around. Most do that. There's been some discussion of the FDIC's problem list and historically only a small percentage of banks on that problem list ever fail.

WHITFIELD: And so the people hurting the most from IndyMac's collapse are the customers with the deepest pockets.

CNN's Kara Finstrom talked to one of the bank's big money losers.

(BEGIN VIDEOTAPE)

KARA FINSTROM, CNN NEWS CORRESPONDENT (voice-over): Locked doors. Their bank seized. Jittery customers of the former IndyMac lining up, wanting to know what happened to my money.

UNIDENTIFIED MALE: What about the people with over 100k? Will they be able to withdraw their money?

FINTROM: The FDIC's response, if you have less than $100,000 in a single account it is fully insured. You can get your hand on all of it Monday. But for bigger depositors, it's complicated.

KEITH GRAVES, INDYMAC ACCOUNT HOLDER: I have several accounts. A few are over six figures.

FINSTROM: Keith Graves says he's one of the customers that had more money in his accounts than the FDIC insures.

DAVID BARR, FDIC: For them, their first $100,000 will be available immediately and 50 percent of the amount that amount that exceeded the $100,000 limit will be made available to them immediately.

FINSTROM: The FDIC hopes to make more payments when it sells assets. There are no guarantees.

Graves is angry.

GRAVES: There's some funny stuff going on somewhere. The people who work for the government should be closely monitoring all these banks.

FINSTROM: A loss won't hurt just him.

GRAVES: We'll take care of it on Monday. We will go down there and take all the money out.

FINSTROM: Graves' grandparents and other family members trusted his bank choice for both their smaller personal savings, which are fully insured, and larger accounts for the family trucking business.

EDDIE LEE EVANS, FORMER INDYMAC CUSTOMER: We want him to get any business driving the truck because you make money.

How long did you drive a truck?

GRAVES: About 20 years.

FINSTROM: A business that started three generations ago.

GRAVES: I thought it was a good small bank to put your money at. And I suggested it to the other people in the family. They're paying the highest interest rates. It'd be good to put your money there.

FINSTROM: Graves says he feels guilty and confused.

(on camera): You weren't aware once you passed over $100,000 it wasn't insured?

GRAVES: Some people done worked all their life to put their money in there. And then be told you are only going to get part of your money?

FINSTROM (voice-over): Graves fears what the loss may be for the family business.

GRAVES: The business is hurting. Gas prices are up. Diesel gas is even more. So then not having money to sit on to sustain your business, it makes it even harder.

FINSTROM: These are the very hard times Graves was saving for. Now he feels abandoned by the bank he trusted.

GRAVES: I haven't heard anything officially from any IndyMac Bank representative. You call, their lines are blocked up. They are not answering their phones.

EVANS: My grandson will take care of it. I try not to get angry because if I get angry I get overemotional. So I just say he'll take care of it.

FINSTROM: Kara Finstrom for CNN, Los Angeles.

(END VIDEOTAPE)

WHITFIELD: And still plenty more questions to be asked, especially of the IndyMac Federal Bank CEO, John Bovenzi. He will be joining Rick Sanchez in the "NEWSROOM" later tonight, taking questions from Rick and perhaps you, too. Stay tuned here on CNN.

A long-simmering crisis in Darfur region of the Sudan threatens to explode. The International Criminal Court could seek an arrest warrant for Sudan's president. And that could come as early as tomorrow. The charge? Genocide and crimes against humanity. Diplomats warn there could be retaliation against both aid workers and the people of Darfur.

Our senior international correspondent, Nick Robertson, reports.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN NEWS SENIOR INTERNATIONAL CORERSPONDENT (voice- over): More than 2.5 million people live in these squalid camps. For them, Darfur is a living hell. Food rations cut in half because aide trucks can't get here. Rape not just common, but routine. And while Sudan's government denies committing atrocities, independent witnesses say the Sudanese military continues to bomb and shoot its own innocent civilians.

The peacekeeping force sent to stop it, the largest ever authorized by the U.N. is undermanned and toothless.

The force weakened at the U.N. Security Council before it was deployed by China's demand that Sudan get a say in who could be in the force.

ERIC REEVES, DARFUR ADVOACY GROUP: What that has meant is we have, the international community has, at the behest of China, conferred upon this regime of genocide there veto power over the deployment of forces.

ROBERTSON: As a result, Western armies ready to help have been kept out and barely one-third the authorized 26,000 force have arrived. The Sudanese ridicule the peacekeepers.

MOHAMMAD HASSAN AWAD, HUMANITARIAN AND COMMISSIONER: They themselves, they need to come and protect themselves. So it's a kind of waste of money by the international community.

ROBERTSON: President Bush called the killings in Darfur genocide and put sanctions on Sudan and has called on the U.N. to do the same. China blocks any such move.

REEVES: They have made it explicit, repeatedly, insistently clear they will not allow sanctions.

ROBERTSON (on camera): China could not more blatant, thumbing its nose at international pressure to put sanctions on Sudan. This new building is a joint venture between Sudan and one of its Chinese business partners. It is the tip of China's massive commercial interest here.

(voice-over): How big? More than $10 billion invested.

(on camera): What impact would it have on Sudan if China were not able to vest here?

AWAD: It would definitely have a very devastating impact.

ROBERTSON (voice-over): The minister tells me China is the single biggest investor here.

AWAD: At the moment, surely it is China bought investment in the oil industry. I think it is pretty light.

ROBERTSON: Not only does China want Sudan's oil. But Sudan is a ready market for Chinese weapons.

REEVE: They purchased a dozen MIG-29s, for example, two and a half years ago at the cost of $1 billion. That is arguably the most profligate, irresponsible military purchase by any African country ever.

ROBERTSON: Meanwhile, aide groups struggles to feed the millions in this these camps, victims, the U.N. says, of a pattern of atrocities as serious and heinous as genocide. Atrocities, critics say, that will cast a long, dark shadow over the Beijing games.

Nic Robertson, CNN, Darfur, Sudan.

(END VIDEOTAPE)

WHITFIELD: And the Bush administration is reportedly considering more troop withdrawals from Iraq starting this September. The "New York Times" quotes the administration and military officials as saying at least one and as many as three of the 15 combat brigades in Iraq could be withdrawn by January.

The Pentagon responded to the report, saying, quote, "Defense Secretary Robert Gates hopes that conditions in Iraq allow for continued troop withdrawal this year. And the steady progress we have seen lately would suggest that may indeed be possible. However, no decisions have been made yet and won't be for some time," end quote.

Well, nine U.S. soldiers were killed today in a major attack in Afghanistan. NATO officials say insurgents targeted a small remote base with machineguns, rocket-propelled grenades and mortars. It happened in Kunar Province, near the northern border with Pakistan. This is the deadliest attack on American troops in Afghanistan in three years.

The horror of gang violence. You have seen it on TV and maybe read about it in the newspaper. But some Americans witness it firsthand every single day and many of them are children. Now a group of kids are actually banning together, hoping to convince lawmakers to take some sort of action.

Joining us now from Washington, Ronata Hewitt, part of the Youth Empowerment Project, which is a six-month course teaching teens about advocacy, and Paul Patu, he's a private trainer, both joining us.

Thanks so much, guys. I appreciate seeing you. Paul, let me begin with you. You are a former gangster, if you will. That is how you describe yourself. You actually sold drugs at one time. Then somehow you turned your life around and now you are trying to reach out to other kids so they don't take the same path as you. What changed in your life?

PAUL PATU, YOUTH EMPOWERMENT PROJECT TRAINER: Well, I think growing up in urban poor community. There really wasn't very many opportunities to kind of express myself. and so I basically found other ways to do that. Some of it found it way in the form of violence. Now that I'm older and the opportunity to give back to young people, and be a part of World Visions Youth Advocacy training has been helpful.

WHITFIELD: Paul, you feel like you have reaching some kids but how you want members of Congress to get involved. Why? When a lot of folks say lawmakers, they would be pretty out of touch with this kind of problem involving young people. They have no idea how to approach stopping this problem, otherwise something would have already been done. What are you expecting from them?

PATU: Really, I expect them to respond to the passion of our young people. It has been incredible to see them come to life and to find their voice and that their voice really matters in the life of their community. I think if they are able to relax and be themselves and, you know, represent on behalf of the communities that they come from, that the lawmakers will respond to that passion positively.

WHITFIELD: Ronata, tell me about your expectations and talk to me about the obstacles for a lot of kids your age. You're 16. You know, you growing up in the shadows of Capitol Hill and you are seeing and hearing the gun fire all the time and you know a lot of your cohorts, your age group, are falling into the pattern of gang violence because there aren't any other options. How is it you have been able to stay on the straight and narrow?

RONATA HEWITT, YOUTH EMPOWERMENT PROJECT DELEGATE: I think I have the support system from family, friends, community leaders. I know that a lot of kids in the area I live don't have that. It is kind of sad. I think just because I knew my capabilities and the expectations I have for myself, and I knew that people expected thing from me as well and I think that kind of pushed me forward. I always strive to do good for myself.

WHITFIELD: That made a big difference for you. Here you are at the Duke Ellington School of the Performing Arts in Washington, D.C. Congratulations.

HEWITT: Thank you.

WHITFIELD: That is a huge endeavor. But, you know, you just mentioned, you have a lot of guidance in your life. And a lot of these kids that go the wrong way, there is no guidance, not even at home. What is it your group or perhaps Congress can do to step in to make a powerful difference for a lot of kids? HEWITT: I think just making them aware of what is happening on our level as kids in D.C. who live through it every day. It makes it that much more real. And just come in with the hardcore facts about what's going on just around the block or around the corner. It, I guess, makes Congress or the council wants to do something about it because the youth, me and my friends, they see us doing so well. And I believe that all youth could be in my shoes or our shoes.

WHITFIELD: Both of you very inspiring. I'm sure a of young people want to followed the formula you followed and try to do it.

You too, Paul.

Ronata Hewitt and Paul Patu, I would love to follow up with you next weekend after you do meet with members of Congress this week just to find out how encouraged you might be or how much more of a struggle this might be in your efforts to get to some real solutions.

Ronata and Paul, thanks so much.

HEWITT: Thank you.

WHITFIELD: Hopefully you'll make it next weekend for a follow up.

HEWITT: Uh-huh.

PATU: Thank you.

WHITFIELD: Finally, that double delivery for Brangelina -- quite the term now. The new Jolie-Pitt twins are the headliners in today's "Chat Room."

(COMMERCIAL BREAK)

WHITFIELD: OK, I know it says "NEWSROOM." But right now you are in the "Chat Room." Welcome.

Jacqui and I are here together to talk.

We brought her in particularly because here you are from Minnesota, a big Green Bay fan as well?

JACQUI, CNN: Well, I'm a Vikings fan but I was born a cheesehead. So if the Vikings can't win than the Packers have to.

WHITFIELD: So why -- are we going to talk about this, Brett Favre.

JACQUI: Which she can't say.

WHITFIELD: Lambeau Field, you pronounce it as you would in France, Lambeau, so why not?

JACQUI: Fave. That doesn't work.

WHITFIELD: We both spoke French. I know. We are in trouble with this "Chat Room." JACQUI: We are. It's a big deal out there today. 200 fans apparently showed up for this. They are protesting and want the Packers to take Brett Favre back. He retired for, what, the second or third time?

WHITFIELD: It is hard especially when you are at the top of your game.

JACQUI: But don't you want to leave when you are on top?

You do. You do. I think he felt that way which is why he was cheerful when he did announced his retirement. But maybe he started thinking about it, shoot, right now I'd be going to -- and here is a tearful moment.

It is hard to let go.

WHITFIELD: Yeah. He must have been thinking right about now, I should have been going with my buddies to camp.

JACQUI: Absolutely.

WHITFIELD: You know, getting ready. So he said, I want back in gang. Put me in. Put me in the game, coach.

JACQUI: He said it's great, but I don't know.

I love you, Brett. I really do. But it's time to coach or something.

WHITFIELD: Oh, you don't want him back?

JACQUI: Don't you think. Well, he can come back. The Packers aren't going to let him back unless -- you know, they'll say, yeah, you can come back but you can't be our lead quarterback.

WHITFIELD: That's right. They say, no, they're going to stick with -- what's his name? Aaron?

JACQUI: Yeah, Aaron Rogers.

WHITFIELD: Yeah, this is pitiful that we...

(CROSSTALK)

JACQUI: Here's one. Get ready to laugh.

WHITFIELD: OK, I'm ready.

JACQUI: Do we have pictures of this?

WHITFIELD: Are we allowed -- because you're going to see some mooning on Amtrak, but we're going to kind of blend it out a little bit. Oh, yes, I saw it.

JACQUI: See, it was just a head shot.

WHITFIELD: Look at the people.

JACQUI: Thank goodness, right?

WHITFIELD: Yes, no kidding. Where are they doing this?

JACQUI: They're doing this in Orange County, California. This is an annual event. I looked it up. They've been doing this since 1979. Some guy in a little bar around there bet his friends to go and do this. And now, literally hundreds of people show up every year and moon the passerby.

WHITFIELD: You know what's not fair about this. Now that we're told to rap, and we've got so much more stuff to talk about, namely the whole Brangelina twins.

JACQUI: Yes, we've got...

(CROSSTALK)

WHITFIELD: OK. Congratulations. Babies are born. Family feuds. When are they going stop already.

JACQUI: Knock some videos. Knock some videos.

WHITFIELD: Knock some videos.

JACQUI: Not bad.

WHITFIELD: All right. There were other things too. There were other naked people out there. They were protesting global warming and gas and all that good stuff.

JACQUI: I'll have to wait until next weekend. I know.

WHITFIELD: I'm talking about gas in the cars.

OK, we'll do it again next weekend. We'll have more time for our "Chat Room."

All right, back now to our "NEWSROOM."

It's been the home of some of the biggest events in the world, from the pope to the Babe, to the greatest. What am I talking about? It's going to be tough to say goodbye to Yankee Stadium.

(COMMERCIAL BREAK)

WHITFIELD: A number of events are paying tribute to "The House that Ruth Built," including a free concert in Central Park. Last night, a performance by the rock group Bon Jovi.

Everybody loved the Yankee Stadium. Bon Jovi's performance is seen as a prelude to the last season of baseball at Yankee Stadium. The All-Star game will be Tuesday, the legendary Bronx Ballpark. They got to enjoy a big show last night.

Yankee Stadium was a ballpark full of monumental memories. Baseball's not the only thing.

Our Larry Smith examines its history.

(BEGIN VIDEOTAPE)

LARRY SMITH, CNN NEWS CORRESPONDENT (voice-over): When if you first walk in it is not so much the sight, the smells or sounds of the stadium that get you, it is just that there is so much of it.

DEREK JETER, YANKEES SHORTSTOP: Without question, I think it can be a little bit intimidating. First time I came here, everything just seemed larger than life.

PHIL PEPE, FORMER NY DAILY NEWS SPORTSWRITER: When it was built, it was the Taj Mahal. It was the last word in ball parks. It was the largest. You start with that, the size.

SMITH: Yankee Stadium opened on April 18, 1923. and it took three innings and one swing of the bat by the game's greatest player for it to be renamed.

PEPE: Isn't it wonderful that they came up with theme "The House that Ruth Built." To this day, it is 80, 90 years later and it is still "The House that Ruth Built." Everybody knows Babe Ruth. Everybody knows Yankee Stadium.

SMITH: Ruth's blast was just the first word in a volume of the game's greatest history -- Lou Gehrig's farewell speech in 1939, Don Larson's perfect World Series game in '56, and Roger Maris' 61st home run in '61.

ANNOUNCER: Holy cow!

SMITH: Even after a complete renovation in 1975, there was Reggie Jackson's three straight World Series homers in '77. And finally, Aaron Boone's shot to again crush the Red Sox in '03. Of course, all those World Series wins.

RUDY GIULILANI, FORMER NEW YORK MAYOR: The team made the stadium. I mean, the stadium would another stadium if it weren't for all the world championships, all the pennants, all the great moments.

SMITH: But while the Yankees made the stadium great, other greats have made the stadium legendary.

TONY MORANTE, YANKEE STADIUM TOUR GUIDE: The first papal mass in the United States, 30 professional championship fights, college and professional football, soccer, boxing, circuses, rodeos, Negro baseball, Bill Graham Crusades, Jehovah Witnesses, Reverend Sun Myung Moon.

SMITH: Even those events were extraordinary. Both the Notre Dame win-one-for-the-gypper and the Colts-Giants NFL championship called the greatest game ever played were held in the Bronx. And Joe Lewis, Rocky Marciano and Muhammad Ali all fought on the same field that three popes and a newly-freed Nelson Mandela prayed on. GIULIANI: It's become a very important part what have New York is about. And it is the place you'd think of where holding an event that would signify New York City.

SMITH: Frank Sinatra never performed at Yankee Stadium but can you still hear him sing after every game. The signature line from Sinatra's "New York, New York" might as well be at the ballpark it rings through. If you can make it there, you can make it anywhere.

Larry Smith, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: All right. Bye-bye and hello to Yankee Stadium, right?

I'm Fredricka Whitfield. Coming up, at 10:00, a CNN exclusive, Rick Sanchez talks about "Your Money" with the COO of the FDIC and now the head of the new IndyMac federal bank as the CEO, John Bovenzi.

A CNN special, "Daughters of Legacy" is next, however.