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CNN Sunday Morning
90 Banks on Government's Failure Watch List; McCain, Obama Present Economic Plans
Aired July 13, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RANDI KAYE, CO-HOST: From the CNN Center in Atlanta, this is CNN SUNDAY MORNING: It is July 13th. Good morning everyone. I'm Randi Kaye, in for Betty Nguyen.
DAN SIMON, CO-HOST: And I'm Dan Simon in for T.J. Holmes. Thanks a lot for starting your day with us. We've got a lot that are in place this morning.
KAYE: We do.
SIMON: We're going to start by talking about one of the largest bank failures in U.S. history. Could your own bank be in trouble? And the answer is actually yes.
KAYE: And the three freed American hostages are home. Hear about their emotional reunions with their families. CNN Headline News anchor Robin Meade has that exclusive interview.
SIMON: And check this out, talk about a distracted driver. Yes, that guy is lying back on his motorcycle. The viral video you must see is coming up on CNN SUNDAY MORNING.
Well, a major bank that went bust reopens tomorrow under the control of federal regulators.
KAYE: For customers of IndyMac Bank, tomorrow can't come soon enough. The agency that ensures bank deposits says phones have been ringing off the hook with more than 20,000 calls about IndyMac since Friday. Customers who showed up at bank branches over the weekend found the doors locked and a notice explaining the situation.
Financial experts say the handwriting was on the wall. Customers just want their money.
(BEGIN VIDEO CLIP)
GINA TURNER, BANK CUSTOMER: Hopefully, I'll get my money on Monday.
UNIDENTIFIED REPORTER: And you're pulling your cash out of this bank?
TURNER: Yes. Well, I'm sorry they're having a problem, but without -- with their problems, I have more of a problem.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
SUZE ORMAN, HOST, CNBC'S SUZE ORMAN SHOW: Why didn't they want to see it? They didn't want to see it, in my opinion, because they were making so much money. The banks were making money. The banks were selling these loans that were no good, they didn't have to worry about it, to the securities companies, they were selling it to investors.
Everybody was making money and everybody was driving, which made the economy look like it was driving, which made the administration look good. Everybody was so happy.
(END VIDEO CLIP)
SIMON: So, how many other banks are we talking about? How many are at risk? The Federal Deposit Insurance Corporation says it is watching 90 other banks on its problem list. CNN's senior business correspondent Ali Velshi talked by phone with Rick Sanchez last night about that very list.
(BEGIN VIDEO CLIP)
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, there's 90.
RICK SANCHEZ, CNN ANCHOR: Who are these other banks?
VELSHI: Well, they won't tell us but they're concerned if we publicize those names, those people will have a run on their banks, causing more banks to fail.
CNN is working on getting some sense of who those banks are. They're probably not the major banks but there are banks that are in trouble and the FDIC is watching that. There's no a need to panic. Just make sure you don't have more than a $100,000 into a deposit count.
SANCHEZ: Yes.
(END VIDEO CLIP)
SIMON: Deposits up to $100,000 are ensured by the federal government.
KAYE: The economy is issue number one for the presidential candidates. Democrat Barack Obama utters the "R" word and he points to ongoing problems in the housing and mortgage markets in promoting his economic plans.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: This is one of the reasons why it's so absolutely important for us to move swiftly, not only on the housing legislation. I think we also have to have economic stimulus package out quickly. I have little doubt that we have moved into a recession at this point. And the sooner we can get money into people's pockets, the sooner that we can stabilize the housing market.
(END VIDEO CLIP)
KAYE: Senator John McCain also is talking about what's going on in the housing industry. He says the government can't let mortgage giants Fannie Mae and Freddie Mac go under. Speculation that the two government-created companies might need a bailout rattled investigators last week. The companies either own or back almost half of the country's outstanding home mortgage debt.
Investors are short of keeping a close watch on bank stocks when the New York Stock Exchange resumes trading tomorrow morning, with federal regulators watching those other 90 banks or so that could be facing problems, that could weigh heavily on financial stocks when the markets reopen.
SIMON: Former and often controversial Georgia congresswoman, Cynthia McKinney is now running for president. The Green Party picked her last night at its convention in Chicago. McKinney as you may recall made news after September 11th when she implied that the Bush administration may have covered up information about the attacks. Two years ago, she was involved in a scuffle with a Capitol Hill police officer who did not recognize her at a security checkpoint.
KAYE: Reaching out to Latino voters in the presidential race. Both senators, John McCain and Barack Obama plan to use the California backdrop to make their pitch.
Our deputy political director, Paul Steinhauser, is keeping track of the candidates. He joins us from Washington with a look at what's ahead.
Hi, there, Paul.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Good morning. You know, both presidential candidates are going to be reaching out to Latinos and Hispanics, and another group as well this week.
(BEGIN VIDEOTAPE)
OBAMA: This election could well be decided by Latino voters.
STEINHAUSER (voice-over): And that's something both Barack Obama and John McCain agree on. Both candidates speak today and tomorrow in San Diego in front of the National Council of La Raza, one of the country's largest Hispanic organizations. It's the third major Hispanic and Latino group they've both reached out to this summer.
(BEGIN VIDEO CLIP, MCCAIN CAMPAIGN AD)
MCCAIN: ... go to the Vietnam War Memorial and look at the names engraved in black granite. You'll find a whole lot of Hispanic names. When you go to Iraq or Afghanistan today, you're going to see a whole lot of people who are of Hispanic background. (END VIDEO CLIP)
STEINHAUSER: It's no surprise that this new McCain campaign commercial is on the air in New Mexico, Nevada and Colorado. Spanish- speaking voters are powerful force in those three states, plus Florida, states that both candidates will fight for. National polls suggest that as of now, Obama has the upper hand with such voters.
Obama speaks in front of the NAACP national convention tomorrow in Cincinnati. It would be his first time in front of a large black organization since Jesse Jackson apologized for suggesting that Obama speaks down to African-Americans.
REV. JESSE JACKSON, RAINBOW/PUSH COALITION: It's ugly and unnecessary. That's why I was really quick to apologize because Barack and I are friends.
(END VIDEOTAPE)
STEINHAUSER: And John McCain speaks to the NAACP convention in Cincinnati on Wednesday. I guess, Randi, it's no surprise that polls though show that Barack Obama, when it comes African-Americans, he's the overwhelming favorite.
KAYE: And, Paul, this is the third time in as many weeks that McCain and Obama have addressed the Latino groups. Obama is leading McCain significantly among Latinos. Is he doing something right or is it simply, would you say, that Latinos just simply tend to swing to the left?
STEINHAUSER: You know, it's interesting. In the Democratic primaries, Hillary Clinton won the Latino and Hispanic vote big time over Barack Obama. But if you take a look back at history, George Bush won about 44 percent of the Latino/Hispanic vote in 2004. That helped him to a reelection victory. But that number dropped big time in 2006 midterm elections, only 30 percent voted for Republicans.
I think the illegal immigration divisive debate really hurt the Republicans.
KAYE: It certainly seems to be the case.
All right, Paul Steinhauser, thanks so much. We'll check back in with you later on.
SIMON: They are home at last. American hostages rescued from Colombia after more than five years in captivity. Guess what? They are finally able to sleep in their own beds. The three men left Texas for their homes in Florida.
Here is Thomas Howes arriving in Orlando.
But before leaving, they wanted to remind people not to forget the hostages left behind held by, of course, the FARC rebels in Colombia. The three former hostages have been undergoing medical tests and a reintegration process in Texas since their July 2nd rescue. Now, they're asking for a little private time with their families.
(BEGIN VIDEO CLIP, BAY NEWS 9)
KEITH STANSELL, FREED AMERICAN HOSTAGE: We're all, obviously, happy to be home. We just would like to say that we're going to come out in a little while and we're going to talk and tell our stories, but just understand I've been gone for 5 1/2 years and the moment right now is with my family. Just please respect that.
Thank you. Everybody has been so supportive. They've been wonderful with us. You will hear from us. But right now, it's family time. I just say thank you. I appreciate it.
(END VIDEO CLIP)
KAYE: Hostage Marc Gonzalves says they'd like to take about a month and a half or so to unwind before heading home. The three talked exclusively though with Headline News anchor, Robin Meade, sharing stories about one of more emotional moments since their return.
(BEGIN VIDEO CLIP)
STANSELL: I have two little boys, five-year-old twins.
ROBIN MEADE, CNN HEADLINE NEWS ANCHOR: And you had never met them?
STANSELL: I'm sorry.
MEADE: Sorry.
STANSELL: No. It's happy. This is happy. This is a good thing for me.
THOMAS HOWES, FORMER HOSTAGE: When the camp boss told us about the fact that they just thought he had one little boy.
STANSELL: I thought one had died.
HOWES: He didn't even think about getting the photo. He said he saw the photo.
STANSELL: They bring a picture out, got two boys I've never seen.
You know, these two guys helped me through it. I knew the mother of my children was pregnant with twins and then he said I just saw you have one baby. This sort of thing we're in a cage.
But this is just a deep breath of happiness. I'll tell you here. I fear these two little guys on the radio sending me messages, you know, on the A.M. radio stations on Sunday nights, and we get to know it. You know, Marc and I chained together literally like you listen to your families and you're, you know, you are a family.
And I walked in here and the first time is limited, it's about 40 minutes. I walked in here with the general and here you got, you know, big general, ex-Special Forces guy. He was more nervous than I was because he was just worried how is this going to go with the kids.
I open the door and now, imagine, you got these two children. To me, which is -- and they just -- I hear papa, papa, papa. And they just hit me. It was like I had never been gone and that's credit for their mother. There's an intensity level to it. When they first tell us like we were talking, hey, you only see your family for 40 minutes there was a reason for it. Forty minutes is overload.
And so, I did the 40 minutes, they took me out. Few hours later, you come back, these people here know how to manage this.
(END VIDEO CLIP)
KAYE: And you can hear the entire exclusive interview with Robin Meade and the freed American hostages tonight at 8:00 p.m. Eastern, right here on CNN.
SIMON: All right, a little lighter news. Do you think the paparazzi are a little jumpy today?
KAYE: I bet they're pretty busy today.
SIMON: Well, let's just say, whoever gets those photographs of the new babies will be very rich. Brangelina, they gave birth to a couple of twins. Angelina Jolie and Brad Pitt, the twins were born last night.
KAYE: They've named the boy is Knox Leon and the girl is Vivienne Marcheline. The babies were delivered by caesarean section at a French hospital. And if you are counting, mom and dad, plus the kids, now equal eight.
Well, one second you're watching the rain from inside your house and your house and then...
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Oh, my God!
(END VIDEO CLIP)
SIMON: Let's just say that as one excellent reason to stay away from the windows during an electrical storm.
KAYE: And Chad Myers is in for Reynolds Wolf today.
Good morning, Chad.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Randi.
You know what, hurricane Bertha barely a hurricane today. We will take you into its tropical depression stage probably by the end of this forecast. Look, it doesn't look very good this morning and it's not going to be good by the end of the week. We'll have more on that coming up.
(COMMERCIAL BREAK)
KAYE: A tanker crash forced the shutdown of the section of Interstate-40 in Cumberland County, Tennessee. State police say the crash between the tanker and three cars caused the tanker to leak a corrosive flammable chemical. Officials ordered evacuations within a two-mile radius of the crash. Cleanup will likely take hours. There are no reports of major injuries.
SIMON: It looks like the worse danger has passed for some very relieved folks in northern California. Thousands of people were allowed to return to their home in Paradise, yes it's called Paradise, for the first time since they were sent scrambling by those wildfires Tuesday, but the flames are still threatening some 300 homes. Evacuation orders remain in effect for Concow, California, just a few miles away where 50 homes were burned.
Chad Myers in for Reynolds Wolf today and were tracking hurricane Bertha.
Chad, it looks like some pretty good waves out there.
MYERS: You know, big-time waves all the way from North Carolina all the way down even to Miami. And we don't usually get Pacific-size waves in the Atlantic unless there's a big story. And the big story is Bertha. It's been out there now for days, actually, over a week.
Take a look at this. Now, we have a Daytona camera. You can barely see the water here but you kind of get an idea. The clouds are on the way and the winds are blowing offshore. I just checked the Coco Beach camera. You can go on there and type in Coco Beach, I don't know cam, I guess all you have to do is cam and it's the first one up there. It's shoreline and you can see the waves. The sets (ph) are really getting big now, probably three to four feet this morning and maybe even over your head in some spots if you find the right corners if you are a surfer.
Today is probably going to be your day. Here is the reason why. Hurricane Bertha, it's out there, it's still churning in the Atlantic, although it doesn't look very good this morning. We have lost a lot of energy with this storm. No bright colors any more because the storm hasn't moved. It's churned up the same water over and over and over and it's used it up and has mixed up all of the colder water from down below and now there's not a lot of hot water underneath it, and so, it's not going to grow anymore.
Rain showers into the parts of the northeast this morning all the way down through Nashville although airports, so far, look pretty good if you're trying to get back home today or some where. Oklahoma City, some showers and the monsoon is still going out here in parts of the southwest. Very heavy rainfalls in Nebraska and also into Arizona and into parts of -- probably New Mexico and Arizona the heaviest though, with the monsoon going on today.
I'm going to take you back up here to the fires. We're going to go all the way around. This is northern California. See that line way up there? That is where Oregon starts.
Look at all of the smoke. Those are not clouds. It's just the smoke from all of the fires up there in northern California. The air not so healthy to breathe up there and also each in parts of southern California, code red and orange with that air just being choked with the smoke all the way down to L.A. -- Dan.
SIMON: Thanks, Chad. I spent a couple of weeks up in the entire county in Big Sur, and I can tell you, the air quality was not good. And so, it's better being here in Atlanta, despite the heat, I can tell you that.
MYERS: Absolutely, right.
KAYE: Thanks, Chad.
SIMON: Thanks, Chad. Let's talk about what it's like to get struck by lightning. Imagine this. Take a look.
(BEGIN VIDEO CLIP, FLICKR.COM)
UNIDENTIFIED FEMALE: Oh, my God!
(END VIDEO CLIP)
SIMON: Yes. That's something else there. That's Jessica Lynch (ph). And she lives on an island in the Puget Sound. She was hanging out a window videotaping a rainstorm when that happened.
KAYE: The lightning apparently hit her left hand holding the camera and exited through her right hand holding a metal railing. She tells CNN the experience left her short of breath for a few minutes but she is OK. That's the good news. Even the camera believe it or not, still works but you might say that was a little too close for comfort.
SIMON: Yes, say that again.
KAYE: She's a lucky woman.
SIMON: She is.
All right. Let's call it green ambition.
KAYE: Dave Matthews band with a message for fans.
(COMMERCIAL BREAK)
SIMON: That is the Dave Matthews band and they are encouraging their fans to get green.
KAYE: Here with more, Brooke Baldwin, and I guess you got a backstage pass, huh?
BROOKE BALDWIN, CNN CORRESPONDENT: This is one of those like twist my arm if I have to go back stage with Dave Matthews, I'll do it. And it's exactly what I did and the group has been keenly aware, if you're fan, you notice that the environment way before going green was considered cool, but in the last few years, the band really ratcheted up efforts to reduce its carbon footprint from their fuel to the food is foraged (ph), you about to see they're made out of biodegradable potatoes starch. These rockstars are educating fans one concert at a time.
(BEGIN VIDEOTAPE)
BALDWIN (voice-over): The Dave Matthews band rocks. Just ask their many thousands of fans.
But beyond their music, the band also has a message that's really resonating. Bassist, Stefan Lessard, is leading the charge...
STEFAN LESSARD, BASSIST, DAVE MATTHEWS BAND: I think we're helping a lot. And I think, if anything, we're educating people.
BALDWIN: ... educating fans to go green.
LESSARD: After traveling around for about 10 years, we started realizing that, you know, we're putting a lot into the air. You know? Just carbon emissions alone, you can just see it in the air, air pollution.
BALDWIN: In 2005, the Dave Matthews band teamed up with environmental non-profit Reverb.
JOSH GLASHEEN, REVERB: What do you guys want, medium? OK.
BALDWIN: Josh Glasheen of Reverb recruits eco-village volunteers. In turn, they talk to fans on the importance of preserving the environment, reducing their carbon footprints and recycling.
GLASHEEN: On average, per night, at this venue, they'll remove one ton of recycling.
BALDWIN: Fans are also encouraged to carpool and if there are four or more along for the ride, their car gets a front row spot.
Why is it important to carpool?
UNIDENTIFIED FEMALE: To save gas, and for the environment, too. Yes, definitely.
BALDWIN: Backstage in the catering trailer, almost all of the food is locally grown and then there's cutlery, cups and plates, no plastic here. All of this is 100 percent biodegradable.
GLASHEEN: So like, this is like your typical plastic beer cup except of the fact that it's made out of one 100 percent of corn, it's 100 percent composable, about three months after this is thrown away, it's completely gone, it breaks down into the landfill and is no longer existent.
BALDWIN: And the group's tour bus is fill up with sustainable biodiesel.
LESSARD: I know that everybody is fully invested and they understand that it's important to not be hypocritical.
BALDWIN (on camera): Despite the constant reminders to recycle, the band's eco-friendly fuel, the locally grown food, is this green message actually strike a chord with concert-goers?
UNIDENTIFIED FEMALE: They do a lot of things to promote, their awareness with the environment like (INAUDIBLE) work and stuff like that. So, it's really nice, they are catering to a big audience.
BALDWIN: Do you recycle?
UNIDENTIFIED FEMALE: Not normally, but I should.
BALDWIN: If Dave Matthews says recycle, you?
UNIDENTIFIED FEMALE: People will definitely recycle.
UNIDENTIFIED MALE: He's got a big enough fan base, that he can make everyone go green or at least influence it.
BALDWIN: Reverb claims that the band's green ways eliminated more than 3 million pounds of carbon dioxide during last summer's tour, equivalent to removing 190 homes from the power grid for a year. This year, the band wants to save even more.
LESSARD: We're just trying to leave less impact of a footprint, you know? We're trying to do our part.
(END VIDEOTAPE)
BALDWIN: We should tell you, the environmental non-profit Reverb, has helped green more than 50 tours in 750 concerts since starting up in 2004. So, pretty impressive, I definitely a lot when I saw the fork made out of corn starch and the plates -- I asked if it was more expensive, you know, to take that kind of effort, to buy that and he said no. That's the biggest misnomer that it's just the same price as plastic.
KAYE: So, we didn't hear from Dave in that story. Did you have a chance to talk to him?
BALDWIN: I did. I talked to Dave backstage, they were so grateful for having us come out and do the story. And I think Dave's been push, he has a huge farm up in Charlottesville, (INAUDIBLE) around; he's a member of the farm aid board. I think his biggest push is working at produce keeping, you know, the family farm's going.
This is really Stefan's baby, his joining up with Reverb. So, they were all could not have been nicer, could not have been nicer.
KAYE: All right. Thank you, Brooke.
BALDWIN: Thank you.
SIMON: Good deal, a good story, thanks.
BALDWIN: Thank you.
KAYE: For more eco-friendly stories and tips on how you and your family can go green, log to CNN.com.
SIMON: Well, it was a really unfortunate surprise for passengers riding the rail.
KAYE: Full moon over Amtrak.
(COMMERCIAL BREAK)
SIMON: OK. Well, we all know weed to save for retirement but it isn't easy. There is always something to spend that money on, right?
Our Christine Romans has some ways to trick yourself into saving in this week's Right on Your Money.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): To spend or not to spend -- that's the question many of us ask ourselves every day.
"Money" magazine's Walter Updegrave says one way to save money is to trick yourself, like signing up for automatic investing plan.
WALTER UPDEGRAVE, SR. EDITOR, MONEY MAGAZINE: The money that comes out of your paycheck before you get a chance to get your hands on it and spend it.
ROMANS: And, give yourself incentives to save.
UPDEGRAVE: Say that you set a savings goal, say $5,000 per year. And you say to yourself, "If I reach this goal, I'm going to give myself a reward, I'm going to buy myself an iPod or something like that."
ROMANS: If the carrot approach doesn't work, Updegrave says, try the stick.
UPDEGRAVE: Some people may operate better from fear of punishment than the promise of a reward. Now, it might be something, maybe you can't watch your favorite TV shows for a month or maybe you can't eat out for a month, something like this. Something that's enough of a penalty where you don't want to incur it, so, you have enough motivation to save.
ROMANS: Christine Romans, CNN, New York. (END VIDEOTAPE)
KAYE: We expect to see on new mortgage rules from the Federal Reserve on Monday. They have been preparing the guidelines since December in attempt to eliminate the chance of another mortgage meltdown.
Here are the proposals they have been considering: requiring lenders to verify income and assets, prohibiting them from engaging in a practice of making loans people can't afford, limiting prepayment penalties, and requiring lenders to establish escrow accounts for taxes and insurance.
SIMON: Both presidential candidates promise to save you money on your taxes.
Josh Levs, I've got a question, do you think we ought to believe them?
JOSH LEVS, CNN CORRESPONDENT: I guess in this context it's been to who he is, because it really boils down to who you are and how much money you make. We're going to give you surprisingly specific income breakdown.
(COMMERCIAL BREAK)
KAYE: Activists and civil rights leaders from around the country are meeting in Cincinnati. The NAACP opened its 99th annual convention yesterday and it continues through Thursday. Democratic presidential candidate Barack Obama speaks at the convention tomorrow. Republican John McCain addresses the delegates on Wednesday.
SIMON: So, have you ever noticed how politicians seem to know all about your money?
KAYE: Yes. Apparently they do. They want you to think the other guy is going to take all your money from you and tax it. So, take a listen from the campaign trail.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: If you want a president of the United States that's going to raise your taxes, I'm not your candidate. I'm not your candidate. Senator Obama is.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Only a quarter of his total tax cuts will go to the middle class. Less than a quarter. 95 percent of people in America would get a tax cut under my plan.
(END VIDEO CLIP)
KAYE: Josh Levs has been listening very closely to the candidates and checking out their competing claims. What have you found?
JOSH LEVS, CNN CORRESPONDENT: Yes. I think this is the first time we've heard this tax battle in the presidential race right?
KAYE: Yes.
LEVS: It is amazing. We're going to keep hearing it all the time. What I want to do is try to drill through and get to you some basic facts. Unfortunately, our good folks at cnnmoney.com have pretty much have broken this down for me. I mean, look at this. Right here. What they'll do to your tax bill and did this with the help of a nonpartisan tax policy center.
Let's go to the first quote I pulled up right now, because I want to summarize it for you. In McCain's plan, the average taxpayer in every income group right there would see lower tax bill and higher incomes benefit the most under his plan. Under Obama's plan, wealthier people would pay more in taxes while every one else would pay less. And the lowest income folks would save the most percentage wise. Now, the tax policy center really dug into the candidates plans and they put something together that I think is pretty amazing. I want to show you this here. It's a lot of numbers. I want to show you once before. Take a look here.
Ignore everything, except the one at applies to you. This is their best guess based on what the candidates are promising. Now, on the left you can see the income brackets. Then how your taxes could change under McCain and under Obama. And let's take a look at it for a second. Now, let's go to the next screen which is some higher incomes. Obviously, this is just an estimate. It's one piece of the economic puzzle but what I love about this screen, is that it really gives you a sense of how their plans are shaping up. And guys, if you ever want to see that again, it's right here on cnnmoney.com. Randi.
KAYE: And Josh, does the report at all, does it address whose tax plan would actually help tackle the national debt better?
LEVS: National debt. Yes, actually I was just looking at that. It's at about 9.5 trillion right now and this is one of the things that you hear a lot. You have to tackle that huge national debt. They do mention that in here. I pulled up this quote, too. They're actually saying that both plans left on their own could add trillions to the debt because on their own they don't raise enough money to cover the expected government expenses. But that is actually when you get into some new questions as well. Are they going to cut spending? What else are they going to do? They're both promising to do that in other ways. So these plans on their own will not tackle the debt, nope.
KAYE: OK. Thanks for clearing that up.
LEVS: A happy piece of news, right?
KAYE: Yes, for sure. Thanks.
SIMON: Thanks, Josh.
LEVS: You got it. Kaye: Senator Barack Obama on the record talking about terrorism. He tells CNN he thinks Afghanistan's president has failed to deliver. He also spoke with our Fareed Zakaria about what he'd do with the capture of Osama Bin Laden.
(BEGIN VIDEO CLIP)
FAREED ZAKARIA, HOST, "FAREED ZAKARIA GPS": If U.S. forces in Afghanistan captured Osama Bin Laden, what would you do with him and you were president?
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Well, I think if he - if he was captured alive, then we would make a decision to bring the full weight of not only U.S. justice, but world justice down on him. And I've said this before, that I am not a cheerleader for the death penalty. I think it has to be reserved for only the most heinous crime, but I certainly think plotting and engineering the death of 3,000 Americans justifies such an approach. Now, the , I think this is a big hypothetical, though. Let's catch him, first.
(END VIDEO CLIP)
KAYE: And you catch the rest of the interview on "Fareed Zakaria GPS" that comes your way today at 1:00 p.m. Eastern right here on CNN.
SIMON: Her husband has the bus known as the "Straight Talk Express" but Cindy McCain may prefer a faster way to get around. She took a spin in the pace car in the Indy Race near national yesterday and CNN's Brianna Keilar, she was along for the ride.
(BEGIN VIDEOTAPE)
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. JOHN MCCAIN'S WIFE: Yes. It would be fun. If I were First Lady, I mean, I don't even think about that. It's too - 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 that would have surf racing as a hobby. My sons and I love it and we have enjoyed the years. We built a car together. We raced it together.
(END VIDEOTAPE)
SIMON: And you can see Brianna's full report tomorrow on CNN's AMERICAN MORNING with John Roberts and Kiran Chetry. And I admire that photographer. He kept pretty steady as that car was going around.
KAYE: She said they built a car together, that's pretty impressive.
Well, passengers aboard an Amtrak train got a whole lot more than they paid for.
(BEGIN VIDEO CLIP)
SIMON (voice-over): It happened in Orange County, California, about eight thousand people gathered along the tracks and pulled down their pants for the annual moon over Amtrak.
LINDA OLDHAM, "MOON OVER AMTRAK" ATTENDEE: It's not something body every does and when you tell someone what you've mooned the Amtrak, they go you did what? You did what? So, it's fun.
ERIC OLDHAM, "MOON OVER AMTRAK" ATTENDEE: It's the party. It's fun. It's probably one of the last kind of wild crazy party events here in Orange County. Just everybody out having a good time, enjoying themselves.
SIMON: Moon over Amtrak. The police eventually broke up the party after they received a lot of complaints for the "full" exposure. OK.
(END VIDEO CLIP)
KAYE: Well, meteorologist Chad Myers, you get to follow that one. In for Reynolds Wolf today.
CHAD MYERS, CNN METEOROLOGIST: I hope they had some sunscreen on there, ladies and gentlemen!
KAYE: I think a moon over the weather center there.
MYERS: Yes, I know. I think we're OK over here. Keep our clothes on.
A little bit of cloud cover across parts of Bermuda but a dying tropical system. It's still called a tropical system. It's still a hurricane right now but it's not planning to be one for a very long time. The water out there getting colder because the storm is not moving. Rain showers all the way from New York state down through Philadelphia, Pennsylvania, all the way down to Nashville as well. Here's a live shot from Nashville.
Just kind of shows cloud cover but the roads are wet and things were a little bit slow. Just be careful out there. And just, if you're going to church this morning, just take your time. You're not going to get in any rush here. Nashville today, rain showers will be over in an hour or two. Back down towards Little Rock, some rain showers as well. Oklahoma city, back into the Lubbock, with some rain. And now also down into the southwest the monsoon. That means that the air is coming out of the south and southwest. It's a moist flow and that moist flow actually causes rain showers throughout even the desert and it could rain pretty heavy in the desert. They had flash flood warnings yesterday.
Air quality alerts up and down the West Coast because of the fires. Still up and down for California but the on shore flow is coming. A cool, damp marine layer, this is the nature's air- conditioner. Hey, Dan, you know what onshore flow is like living in San Francisco. SIMON: Yes, indeed.
MYERS: The coldest summer you ever had was in San Francisco, where the high could be 60 degrees in the middle of July.
SIMON: You know who coined that phrase?
MYERS: Yes. Hemingway?
SIMON: No.
MYERS: Who did?
SIMON: Mark Twain.
MYERS: Mark Twain. OK There you go. I knew it was somebody important.
SIMON: Yes.
MYERS; How is it, it's the coldest summer I ever spent was a winter in San Francisco. Yes. That's how it goes.
KAYE: You have to know that because you lived there.
SIMON: That's right. Found out when I moved there.
KAYE: OK. Good. That makes me feel better. All right. Thanks, Chad.
MYERS: You bet.
SIMON: Well, if neither presidential candidate appeals to you, here's another option.
(BEGIN VIDEO CLIP)
KAYE: A political campaign is sweeping through the evangelical community that could upset the status quo.
UNIDENTIFIED MALE: We found the hope of a plan and it burns much brighter than...
(END VIDEO CLIP)
(COMMERCIAL BREAK)
SIMON: A new breed of evangelical Christian has taken a claim to the political landscape this election season. Once solidly republican, these new evangelicals defy the stereotype. CNN's Kate Bolduan says do not expect 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 up with Claiborne, a Christian activist and author on his book tour in Pittsburgh. The title says at all, "Jesus for President."
CLAIBORNE: Over and over we're hearing things like I knew there was more to Christianity than what I saw on television and fellow evangelists and patriotic pastors and cover-up 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: ... kingdom of the poor and the broken.
UNIDENTIFIED MALE: It's getting harder and harder to find good grease.
BOLDUAN: Claiborne's tour bus even runs on veggie oil.
UNIDENTIFIED MALE: And it's cheap.
BOLDUAN: In 2004 about three-quarters of evangelicals 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, SENIOR 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, UNDECIDED VOTER: I'm very undecided. I feel very totally different issues were identified more with the republicans and others will identify more with the democrats.
STEPH WALKER, YOUNG EVANGELICAL: I grew up in a very political family but my growth in my faith just kind of move me in a different direction.
BOLDUAN: Back on tour, Shane Claiborne says it's more how you live your life November 3rd and 5th than how you vote on November 4th, election day.
CLAIBORNE: When a lot of us is trying to do is learn from the mistakes so the generation has come before us and go, well 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)
KAYE: Pope Benedict XVI arrived in Australia this morning for a 10-day visit. It is his first trip to the country. During this stay, the Pope will attend the World Youth Day Festival. He hopes to raise awareness about global warming and he is expected to address the issue of sex abuse in the Catholic Church.
Now you have a brand new 3G iPhone what will you do with that old one? Josh Levs has one suggestion.
LEVS: Randi, you know I'm always searching out answers, right?
KAYE: Always.
LEVS: Whatever you need to answer, I got you covered. Well the folks () this time have their own answer to that question.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: My old phone. I think I'm going to press the smoothie button.
LEVS (VOICE-OVER): Incredibly obvious, do not try this at home!
(END VIDEO CLIP)
(COMMERCIAL BREAK)
SIMON: Have you ever type on the blackberry when you're driving?
KAYE: Nope.
SIMON: It drives -
KAYE: I'm not going to admit it -
SIMON: It drives my wife crazy.
KAYE: I bet. It's dangerous.
SIMON: It is dangerous but you know, sometimes you can't help it.
KAYE: True.
SIMON: But you know what you should not do? You should not do it when you're on a motorcycle. Imagine somebody trying to do it when they're on a motorcycle.
KAYE: That would be pretty bad. It's one of the amazing videos though that Josh Levs has unearthed and now sweeping through the world wide web.
LEVS: Yes. You know, we've talk about being courteous when you're on the cell phone. We haven't talked so much about being a crazy person but this is one of the viral videos in America right now. Let's take a closer look so everybody can see it. The pretty version out there for you. And let's listen in for a second to some people in India freaking out over what they're seeing.
(BEGIN VIDEO CLIP)
[ speaking in foreign language ]
LEVS (voice-over): Yes, that's right, folks. Apparently he is having a good time leaning back, relaxing and texting in a way that he can't even see while he's driving, while he's on his motorcycle. It's got to be violating something but we don't know what the laws are over there. We are sure this is not allowed. Apparently he is enjoying though. What do you guys think?
KAYE: It's real skill. I mean, he can, you know, he's got the motorcycle. He's still driving it. And e-mailing. That's amazing.
LEVS: Remember when you're a kid and you bike and you said, look, ma, no hands.
SIMON: Yes.
KAYE: Yes.
LEVS: I'm starting to understand why our parents told us not to do that.
KAYE: It's like a whole new level.
SIMON: I think it's impressive the way he's riding the motorcycle, let alone texting.
LEVS: Impressive as long as he survives. We're not encouraging anyone to do this. Don't go make an I-report of yourself doing it and think it will show up. We won't, once is enough.
Oh, man. Before I lose my time, we got to look at this crazy thing people are now doing with their I-phones. Will it blend.com. So apparently no one knew this before. And now we have a useful piece of information. If you choose to blend your brand new Iphone it will turn into a pile of charcoal. Fascinating, huh?
SIMON: Hey, iPhone shake. Yes. I'm pretty sure the warranty doesn't cover that but there is something very watchful about watching people destroy stuff.
KAYE: Can you still recycle it? When it's like that, I wonder?
(CROSSTALK)
LEVS: ... to destroy it like that. I don't think you're thinking much about the environment.
SIMON: He's taking Gallaghers to a whole new level with the watermelons, now iPhones? LEVS: Nice. Yes, there you go. Now, that was proven.
KAYE: Thanks, Josh.
LEVS: Thanks, guys.
SIMON: Closing down the house, the Yankee stadium, it's going to host a going away party of some sorts next week. Baseball all-star game is bringing in the big bucks. Rick Harrow, he's going to join us after the break.
(COMMERCIAL BREAK)
KAYE: A pioneer of modern medicine has died. Dr. Michael DeBakey was 99 years old. DeBakey broke new grounds as a heart surgeon. He was the first to try procedures that are now common place. CNN's Michael Schulder has more on DeBakey's remarkable career.
(BEGIN VIDEOTAPE)
MICHAEL SCHULDER, CNN CORRESPONDENT: By the time this film was shot in the 1960s of Dr. DeBakey making his morning rounds at the hospital, he already earned a global reputation. Early in his career, DeBakey developed brand new types of surgery that saved the lives of countless people with clogged arteries. He invented devices that keep dying hearts pumping longer so patients could wait for a heart transplant. He helped develop the Mobile Army Surgical Hospitals known as M.A.S.H. Units. President after president has sought his advice. And Dr. DeBakey's talent became so recognized around the world that when the rich and powerful needed major heart surgery -
UNIDENTIFIED MALE: Why did you come to here?
SCHULDER: Like the Duke of Windsor, it was DeBakey they sought out.
UNIDENTIFIED MALE: I've come to the maestro.
SCHULDER: This April as the maestro of cardiovascular surgery received Congress's highest civilian award, the Congressional Gold Medal. He explained how his parents helped shaped the man he would become.
DR. MICHAEL DEBAKEY: They urged us to get any book from the library, at least once a week and read it. I came home one day and told them that I found a very good book but they wouldn't let you borrow it. You had to read it at the library. And my father wanted to know what it was. I said it's called the Encyclopedia Britannica. He promptly bought a set. Both my brothers and sister and I would rush through our lessons to get a little time with the Encyclopedia Britannica because it had a new adventure and enjoyed it so much.
SCHULDER: By the time DeBakey graduated high school, he had read the entire Britannica cover to cover. And by the time he died, just two months shy of his 100th birthday, he had performed more than 50,000 surgeries and invented dozens of surgical tools that will be used for a long time to come. The man, he said, was born to work hard.
(END VIDEOTAPE)
SIMON: A sad day for New York Yankee fans and baseball fans in general. Former all-star outfielder and broadcaster Bobby Murcer has died. He died of complications from a malignant brain tumor discovered in 2006. Murcer spent nearly 40 years in the Yankee organization. First, as a player and then in the Yankees broadcast booth for most of the last quarter century. Bobby Murcer was 62 years old.
Celebrating the house that Ruth built and Bobby Murcer called home, Yankees Stadium is closing down after the season ending 85 years as one of the sports greatest sports cathedral. Baseball's all-star game is coming to town on Tuesday as part of the going away party. Sports business analyst Rick Harrow joins us now from West Palm Beach, Florida. Rick, good morning to you.
RICK HORROW, SPORTS BUSINESS ANALYST: Heading up to New York right now to be part of that festivity, by the way, Dan.
SIMON: Well, it's a big deal. I mean, even if you're not a baseball fan, I mean, this is really something to celebrate. I suppose Red Sox fans might even be sentimental about this.
HORROW: Well I'm going to put on my Yankee hat because this is probably the only day that you can celebrate it. Because they've been going downhill fast OK but for the city, $150 million of economic impact. $1,600 as fans for you and me if you want to get the package for the home run derby and the all-star game and all the galas. That's face value. But $9,000 for a good seat. It was up to $12,000 but all of the brokers who had the dollars are probably looking for a job now with the market the way it is so they lowered the prices.
SIMON: I imagine, yes , the tickets are going for a lot on ebay, but did baseball sort of plan this? I mean, did they know that the stadium was going to be closing down right, you know, this year so they decided to do the all-star game at Yankee Stadium?
HORROW: They did more than sort of plan it. This is part of a, you know, worldwide celebration of New York's sports. First time major league baseball has ever awarded an all-star game to a stadium in its last year. Eighth all-star game in the city of New York but remember, Mets, Yankees, Giants, Jets, Nets, Devils. All of them have new facilities open or will be open. Hey, it's more building than the Acropolis or the Parthenon. New York's millions of dollars of construction.
SIMON: Yes. I saw Shea Stadium also closing. Billy Joel is going to be having a concert there, I guess, in the coming weeks. But you know, let's talk about something else. I mean, there's some drama going into this all-star game with A-rod and all the controversy surrounding his personal life. How do you think that's going to impact the game if at all? HORROW: This is a super star week. We have got A-rod, obviously, Josh Groban singing "God Bless America" in the seventh inning. And you've got three doors down with their concert and Bon Jovi yesterday at Central Park. So it's all about superstars. Did you say Madonna? So, we're talking about A-Rod. The bottom line of all of that controversy is not the issue. The issue is all the eyes and ears on the city of New York and the impact. And if you were to say that the tabloids are covering stuff about A-Rod, that isn't new.
SIMON: Well, it doesn't seem to be affecting his play. I saw he and Derrick Jeter both hit home runs I think last night.
HORROW: Yes. They're doing all right. They need pitching. Not home runs.
SIMON: The Yankees not doing that great this year but they are moving into a new stadium so, so, whatever happens this year is going to be a lot of excitement next year, of course.
HORROW: Well, of course but it's the most expensive stadium in history. By the way, the whole all-star game, as we said, if you're going, it's three times as much as last year's in San Francisco, but again if you said New York prices are higher than anywhere else, that's not news either.
SIMON: And I know, I know you know a thing or two about stadiums, I know you're involved with putting deals together. But before we go, Rick, let's talk about Bret Favre. I mean, this is a big deal. He wants to come out of retirement. How often do we see professional athletes decide we're not quitting? Well he is serious about wanting to come back but the packers don't want them.
Can you say Johnny Unitas and other players who came back in different uniforms? But the bottom line is they want that contract terminated because he wants to go somewhere else. The Packers are saying he is an institution but we need him as a backup. He's forced the Packers into a response. It's really almost too bad but talking a lot of this stuff over the summer which the NFL really likes.
SIMON: Rick, we are all of time. Thanks as always for joining us. Take care.
HORROW: See you. Good morning.
SIMON: Good morning. From the CNN Center in Atlanta, this is CNN SUNDAY MORNING. It is July 13th. I'm Dan Simon, in for T.J. Holmes.
KAYE: And I'm Randi Kaye, in for Betty Nguyen. Thanks for starting your morning with us.
A major bank shut down by federal regulators will reopen tomorrow with the feds in control.
SIMON: Calls from customers of IndyMac have been pouring into the agency that insures the bank deposits. KAYE: People who showed up at bank branches over the weekend found the doors locked and a notice explaining the situation. After customers learned about the bank failure on Friday, many braced themselves for a weekend of high anxiety.
(BEGIN VIDEO CLIP, KTLA)
ALAN SANDS, BANK CUSTOMER: It's been nerve wrecking. And I just -- I just don't like - it's going to be a long weekend. I just don't like feeling -- feeling like this. I can't wait for Monday to at least get some resolution, some sort of, you know, I want to get my money out as soon as possible.
(END VIDEO CLIP)
SIMON: IndyMac was one of the nation's largest home lenders. The bank expanded rapidly during the real estate and housing boom. When the bottom filled out of the housing market, the bank went under. One financial expert says officials should have seen the handwriting on the wall. (BEGIN VIDEO CLIP)
SUZE ORMAN, HOST, CNBC'S SUZE ORMAN SHOW: Why didn't they want to see it? They didn't want to see it, in my opinion, because they were making so much money. The banks were making money. The banks were selling these loans that were no good, they didn't have to worry about it, to the securities companies, they were selling it to investors.
Everybody was making money and everybody was driving, which made the economy look like it was driving, which made the administration look good. Everybody was so happy.
You know, everybody got mad at the Enron people, the WorldCom people. We took them to jail. We did all this.
I don't know -- I don't understand why the people that should have been watching and weren't watching and weren't watching and allowed this to happen aren't going to jail as well if you ask me.
(END VIDEO CLIP)
SIMON: How many other banks are at risk? Well, the Federal Deposit Insurance Corporation, the FDIC, says it is watching 90 other banks on its problem list.
CNN senior business correspondent Ali Velshi talked by phone with Rick Sanchez last night about the list.
(BEGIN VIDEO CLIP)
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, there's 90.
RICK SANCHEZ, CNN ANCHOR: Who are these other banks?
VELSHI: Well, they won't tell us but they're concerned if we publicize those names, those people will have a run on their banks, causing more banks to fail.
CNN is working on getting some sense of who those banks are. They're probably not the major banks but there are banks that are in trouble and the FDIC is watching that. There's no a need to panic. Just make sure you don't have more than a $100,000 into a deposit count.
SANCHEZ: Yes.
(END VIDEO CLIP)
SIMON: Deposits up to $100,000 are insured by the federal government.
KAYE: With the stock market dropping into bear territory, you probably don't want to even look at your latest earnings statement. The drop in the market is taking a toll on the retirement accounts of millions of Americans.
Allan Chernoff talked with members of one investment club.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: This month was not a great month.
ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): It's been a stomach-turning first half of the year for members of the Future-Vest Investment Club. They've watched their portfolio lose 9 percent of its value -- a fund that members are counting on for retirement. Monica Noel, a financial planner who is in the club thought the stock market would have rebounded by now. Today, she is not so sure.
MONICA NOEL, FINANCIAL PLANNER/INVESTOR: How low will it go? That's the big concern.
CHERNOFF: And even bigger concern for Monica, her personal investments, especially her individual retirement account which she manages more aggressively than the club's money.
NOEL: I had done very well in the past. But over the past year, I think I'm down 10 percent to 15 percent.
CHERNOFF: Her brother, Ruthven, also a club member, is only five years from his planned retirement.
RUTHVEN NOEL, INVESTOR: Although I'm getting close to retirement, it's a little bit more worrisome now than before.
CHERNOFF: Millions of Americans have put much of their savings into the stock market, expecting gains will help carry them through the retirement years. Bear markets can ruin those plans.
Frank Powell is already well into his retirement years. He's 81 and counting on the club to help him in his future years.
FRANK POWELL, INVESTOR: It wouldn't be a natural thing if you weren't perturbed, of course, unless you were one of the big boys. But right now, it's a little apprehensive.
CHERNOFF: Even so, the club is planning to buy more stocks.
R. NOEL: I think Genentech is holding up a bit well, too.
POWELL: Yes, it's appreciating right now, yes.
M. NOEL: You can't withdraw from your investment when the market is down.
CHERNOFF: Careful research and buying quality companies has paid off for these investors. Even with this year's losses, Monica says over the past five years, the portfolio is still up more than 13 percent a year, far outperforming the stock market's leading indices.
(on camera): The club is taking the right approach. If you're investing for the long term, you want to keep a long-term focus. A good way to do that is to continue putting money to work in the stock market even when stocks are declining.
Allan Chernoff, CNN, New York.
(END VIDEOTAPE)
KAYE: And we'll be watching the markets and your money, tomorrow and all this week. Your job, your savings, are all part of ISSUE NUMBER ONE: The Economy, noon Eastern weekdays only on CNN.
SIMON: Former and often controversial Georgia congresswoman, Cynthia McKinney is running for president. The Green Party picked her last night at it's convention in Chicago. McKinney made news after September 11th when she implied that the Bush administration may have covered up information about the attacks. Two years ago, she was involved in a scuffle with Capitol Hill police officers, or at least one police officer, who didn't recognize her at a security check point.
KAYE: Presidential contenders Barack Obama and John McCain are going after the Latino vote in the days ahead. Both seem to think California is the best place to make their pitches. Our deputy political director Paul Steinhauser reports.
(BEGIN VIDEOTAPE)
SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: This election could well be decided by Latino voters.
STEINHAUSER (voice-over): And that's something both Barack Obama and John McCain agree on. Both candidates speak today and tomorrow in San Diego in front of the National Council of La Raza, one of the country's largest Hispanic organizations. It's the third major Hispanic and Latino group they've both reached out to this summer.
(BEGIN VIDEO CLIP, MCCAIN CAMPAIGN AD)
SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: ... go to the Vietnam War Memorial and look at the names engraved in black granite. You'll find a whole lot of Hispanic names. When you go to Iraq or Afghanistan today, you're going to see a whole lot of people who are of Hispanic background.
(END VIDEO CLIP)
STEINHAUSER: It's no surprise that this new McCain campaign commercial is on the air in New Mexico, Nevada and Colorado. Spanish- speaking voters are powerful force in those three states, plus Florida, states that both candidates will fight for. National polls suggest that as of now, Obama has the upper hand with such voters.
Obama speaks in front of the NAACP national convention tomorrow in Cincinnati. It would be his first time in front of a large black organization since Jesse Jackson apologized for suggesting that Obama speaks down to African-Americans.
REV. JESSE JACKSON, RAINBOW/PUSH COALITION: It's ugly and unnecessary. That's why I was really quick to apologize because Barack and I are friends.
(END VIDEOTAPE)
KAYE: And Paul Steinhauser joins us from Washington.
Paul, Obama spoke about Jesse Jackson late last night. Can you give us a scoop on what he said?
STEINHAUSER: Yes. He was talking to reporters in that plane right out to San Diego and he said he had talked to Jackson before the controversy but he hasn't another chance to speak to him since it happened. Obama also said this, he said that while the government has an obligation to deal with poverty, he said that the black Americans need to be honest about the problems afflicting their community.
And John McCain, he also speaks to the NAACP convention. He does that on Wednesday. Randi, I guess, it's no surprise that polls show Obama has overwhelming support among African-American voters.
KAYE: No, certainly, no surprise.
All right. Paul Steinhauser for us this morning, thanks so much.
STEINHAUSER: Thank you.
SIMON: And Senator Obama is on the record talking with CNN about terrorism and the hunt for Osama bin Laden. He spoke candidly with our Fareed Zakaria about what he'd do if bin Laden was captured.
(BEGIN VIDEO CLIP)
FAREED ZAKARIA, HOST, "FAREED ZAKARIA GPS": If U.S. forces in Afghanistan captured Osama bin Laden, what would you do with him and you were president?
OBAMA: Well, I think that if he was -- if he was captured alive, then we would make a decision to bring the full weight of not only U.S. justice but world justice down on him. And I think that I've said this before, that I am not a cheerleader for the death penalty. I think it has to be reserved for only the most heinous crimes. But I certainly think plotting and engineering the death of 3,000 Americans justifies such an approach.
Now, the -- I think this is a big hypothetical, though. Let's catch him first.
(END VIDEO CLIP)
SIMON: And you can catch the rest of the interview on FAREED ZAKARIA GPS, that's today at 1:00 p.m. Eastern, only here on CNN.
KAYE: Chad Myers is in for Reynolds Wolf today.
And, Chad, you're tracking Bertha, which, I guess, has been downgraded.
MYERS: Yes, you know what -- a little bit of breaking news going on here, just in, tropical storm Bertha not hurricane anymore, down to 70 mile per hour storm, and the whole area here around Bermuda still getting big waves.
Although you can't really see the waves from this picture, we do have a shot here for you. Kind of a live tower cam to start your day, a beautiful sunrise across parts of Florida. I know we're watching the NASCAR race last night like I was, what an amazing sunset they had over Chicagoland Speedway, as well. More to come a little bit later. Randi?
KAYE: All right. Chad, thanks so much.
Stuck in a bureaucrat black hole, a teen looks ahead to the future wondering if she'll realize a dream to be a U.S. citizen.
(COMMERCIAL BREAK)
KAYE: Former hostages finally home this morning after spending more than five years in custody in Colombia. The three men freed from FARC rebels July 2nd, are now kicking back with their families in Florida. They were allowed to leave a Texas military medical center after undergoing medical tests and a so-called "reintegration" process.
Before leaving, former American hostages asked for a little space.
(BEGIN VIDEO CLIP)
KEITH STANSELL, FREED AMERICAN HOSTAGE: Today, for the first time, we're going home. There's family member that are waiting for us. And just imagine if you hadn't seen your family in 5 1/2 years. Please just respect our privacy. We're not here to answer questions right now. We just want to say thank you to the people while we've got a chance to do it and let us go home and be family men again. (END VIDEO CLIP)
KAYE: And before heading out of Texas, the three former hostages sat down with CNN Headline News anchor Robin Meade and talked about their struggle to stay strong.
(BEGIN VIDEO CLIP)
HOWARD HOWES, FREED AMERICAN HOSTAGE: I knew I was a captive, this was a getaway. When I was playing chess, I was free. And I did that -- we came up with these things to not have that captive feeling.
MARC GONSALVES, FREED AMERICAN HOSTAGE: They tried to capture our minds and brainwash into their philosophy and their doctrine. I think they would have loved to have done that. They tried. But I think the three of us, we maintained firm to the American way.
(END VIDEO CLIP)
KAYE: You can hear the entire exclusive interview with Robin Meade and the freed American hostages tonight at 8:00 p.m. Eastern right here on CNN.
SIMON: Tangled in red tape, a teenager adopted as a toddler still unable to call herself a U.S. citizen. CNN's Zain Verjee has more on the hold-up.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN CORRESPONDENT (voice-over): Allie Mulvihill turns sweet 16 next month. She is ready to drive and wants an after- school job but she's afraid she can't do either, because the U.S. government won't grand her legal status.
ALLIE MULVIHILL, FACING POSSIBLE DEPORTATION: All along I've really known that I'm not like everyone else.
VERJEE: Scott and Lori Mulvihill legally adopted Allie from Guatemala in 1994. The U.S. government told them they were worried the child was stolen. Still, the Mulvihills were allowed to bring Allie to the U.S. but her immigration status expired two years later. Getting citizenship has turned into a 14-year battle.
(on camera): Do you feel scared sometimes?
A. MULVIHILL: Yes, because I don't know where I'm going to end up after all this.
VERJEE: You have letters back and forth to immigration. It's State Department, the American embassy.
(voice-over): The Mulvihills won't stop fighting.
(on camera): What is really the brick wall you're running up against and you boil it down?
LORI MULVIHILL, ALLIE'S MOTHER: Immigration.
SCOTT MULVIHILL, ALLIE'S FATHER: The climate of immigration right now is such that the immigration office is going to hold on to whatever cards they have because it's such a hot topic right now.
VERJEE (voice-over): The United States Citizenship and Immigration Services told CNN they've been "trying to work with the Mulvihill family, and we continue to urge them to provide evidence that this minor is eligible for permanent residency."
What the government has been demanding all along is DNA evidence proving the woman who gave Allie up for adoption was her biological mother and not a baby trafficker. The agency that arranged the Mulvihills adoption has since gone under and the couple says they have no way of tracking down Allie's biological mother.
L. MULVIHILL: That's an impossibility to find her now. They said that is your only option.
VERJEE (on camera): What will be the consequences if after all of this, you still don't get the citizenship, you don't get visa?
L. MULVIHILL: She faces deportation.
VERJEE: Wow.
L. MULVIHILL: So that's, you know, that's hanging over our head.
VERJEE (voice-over): A frightening reality for a teen who only knows Allentown, Pennsylvania, as home.
A. MULVIHILL: It's been great growing up here. My parents mean everything to me. And we have so much fun together. They treat me as if I was the same as, like, my sister.
VERJEE: What would it mean for you to have U.S. citizenship?
A. MULVIHILL: It would mean the world to me because I'd be able to be a normal teenager.
VERJEE (voice-over): Zain Verjee, CNN, Allentown, Pennsylvania.
(END VIDEOTAPE)
SIMON: The children of Dr. Martin Luther King, Jr. fighting in the open. Josh Levs has a copy of the lawsuit.
LEVS: (AUDIO BREAK) battle here over the estates of the Dr. King and Coretta Scott King.
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SIMON: It has finally happened. Some big baby news for a team Brangelina -- Angelina Jolie has given birth to her twins with partner Brad Pitt. They are named - well, the boy is named Knox Leon and girl Vivienne Marcheline. The babies were delivered by C-section at a French hospital and if you are counting, mama and dad plus kids, now equal eight.
So, congratulations to them.
KAYE: Yes, it's a big day.
SIMON: Huge day.
KAYE: The family of Dr. Martin Luther King, Jr. has worked hard maintaining united front and now there's a major cracking of passage. Josh Levs is here to explain why one of the sons is being sued.
LEVS: Yes, I mean, we're just talking about this. It's an iconic family, right? And you used to them having a very public front. Even there are rumors about them, questions particularly about money. You always have in general, in public them saying, "I love my brother, I love my sister." Just a lot of real public togetherness but now we're seeing it's not like that, certainly in this lawsuit.
There are three surviving King children. Look at the picture of them here. We've got Martin III, Dexter and Bernice. And this is actually a picture from the funeral for their older sibling, Yolanda, last year. She was the eldest child of the four.
Now, of course, of this lawsuit that I've got here, Dexter controls their father's estate and Bernice is the administrator of their mother's estate. So, that's kind of where this fight comes in. That's the context for it.
Now, in the lawsuit, Bernice and Martin are accusing Dexter of, they say, taking substantial funds out of their mother's estate. They're also saying that he "wrongfully appropriated money from their father's estate." Let's leave it for a second because I know it's complicated. You got both estates involved here.
I spoke with the plaintiff's lawyer, and they are telling me that they just don't know what Dexter has done with the money and they can't get him to tell them what he's done with the money. We tried reaching Dexter, he didn't call us back. But then, he put out this statement, saying, quote, "It is my hope that this inappropriate and false claim by my siblings will be swiftly resolved and we can go about the business of focusing on our parents' tremendous legacy."
Now, obviously, a lot of people are talking about this throughout the country including here in Atlanta. Reverend Joseph Lowry, he's a civil rights figure, knew Dr. King, worked with Dr. King, he says that he's actually been aware of a split among the children.
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REV. JOSEPH LOWRY, KING FAMILY FRIEND: Well, I had hoped they could resolve it without coming to litigation. Those hopes were dimmed when Coretta died. (END VIDEO CLIP)
LEVS: So, a lot of people feeling that the hopes are down for them. Now, attorneys for the plaintiffs say Martin III and Bernice tell me that they hope that this can be quickly resolved. But one thing that's striking in the lawsuit that they're saying in here, guys, that they are ready to take this to a court trial, which would mean a very public drama for this iconic family.
KAYE: And how much money are we talking about? Do we know?
LEVS: That is more than the $64,000 question. That's the big question here -- how much money are we talking about? That's what we want to know. They won't tell me how much the estate is even worth, how much either estate is worth.
We do know that when Martin Luther King had a collection of very rare documents that was sold a couple of years ago through an auction process, it was sold for, and the neighbor had reported, $32 million to $35 million. So, we know his estate is substantial.
Now, the attorneys tell me before that, it was not substantial. So, in his estate, you've got at least $30 million something. In Coretta's estate, how much money - how much are they accusing Dexter of taking? That we don't know and they won't say. The question now: how much farther that this lawsuit go and do we find out?
SIMON: Yes, for them to go through the drama and the publicity of a lawsuit's got to be worth a lot.
LEVS: It must be. Well, you're right. It must be worth a lot for them to be willing to risk whatever damage to them could come from looking like, you know, they don't have kind of unity that they've always prided themselves on.
KAYE: It's so unfortunate though that it's come down to this.
LEVS: It's tough to see on any family.
KAYE: Yes. All right, Josh. Thank you.
LEVS: Thank you.
SIMON: All right. We are talking about a used Rolls Royce here. It is in good condition and it has only one previous owner.
KAYE: It sounds like a pretty good deal, right? Until you'll learn who that previous owner was.
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KAYE: Classic cars with a dubious twist, a part of Saddam Hussein's Iraq or more accurately his sons'.
SIMON: Hidden treasure that probably would have brought a pretty penny on the black market. It is now in police hands. CNN's Frederick Pleitgen has more.
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FREDERICK PLEITGEN, CNN CORRESPONDENT (voice-over): It looked pretty beaten up but Iraq's police say these wheels are something like a national treasure.
(on camera): It really is a shame the shape that these cars are in. Look, you have stuff hanging from the ceiling. You have dirt inside, dust. You can tell that no one has taken care of them these last couple of years.
(voice-over): No wonder, police say the cars were stolen from Uday Hussein's palace during the looting that took place after the 2003 invasion of Iraq.
Acting on a tip, police found the cars collecting dust and sand on this farm in southern Baghdad. These are photos from the police raid. None of the cars are fit to drive but Colonel Rahad Badjalan (ph) says the thieves were going to smuggle them out of Iraq and sell them for a lot of money.
"Now we want to move the cars to a museum for rare and vintage vehicles," the colonel tells me.
Saddam's son Uday lived a lavish life before he and his brother, Qusay, were killed in a gun battle with American forces five years ago. Uday Hussein's love of luxury cars was well-known. It's said that when he saw a vehicle he liked, he simply took it away from the owner.
Louai al-Ameeri says he almost lost his '85 Corvette that way.
LOUAI AL-AMEERI, CORVETTE OWNER: When they came to me, I was very sad because I think they will take the car from me. But I thank God they didn't take it from me.
PLEITGEN: Now, Uday Hussein, like his father Saddam, is gone and the luxury vehicles that once symbolized their power, stand collecting dust in a Baghdad police compound.
Fred Pleitgen, CNN, Baghdad.
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SIMON: All right. Take a look at this. This is what it's like to get struck by lightning.
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UNIDENTIFIED FEMALE: Oh, my God!
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KAYE: Yes, no wonder she's screaming. Jessica Lynch (ph) lives on an island in the Puget Sound. She says she was leaning out a window videotaping a rainstorm.
SIMON: So, this is how it went down. The lightning apparently hit her left hand which was holding the camera and exited through her other hand as she was holding a metal railing. She tells CNN the experience left her, well, she was short of breath as you might expect, but apparently she's OK. Even that camera still works. That's important. But that was a little too close for comfort.
And, as if that were not tempting fate enough, check out this guy. We believe it was shot recently in India. He obviously had a very hard, laid back approach to the commute. Check that out.
KAYE: It appears he keeps checking his phone for text messages. Those apparently were important messages. Somehow he manages though to maneuver through heavy traffic without missing a beat. Unbelievable.
SIMON: That is something else.
This might look like a run of the mill corporate jet. Is there such a thing as a run of the mill corporate jet? But somebody, it's worth about $500,000. It looks like a wedding chapel actually, a very high flying wedding chapel. The rocket plane is under construction in Oklahoma City.
KAYE: Its creators envision it as a workhorse for a select market, very select, weddings in zero g. Mitch Lange (ph) and Cindy Cashman (ph) who you just saw in that picture there have the distinction of being the first couple to sign up for the service. They said they met in cyberspace in 2005. So, getting married in space in 2010, logical next step.
Pretty cool, actually.
SIMON: It's going to happen some day. Somebody's going to get married in space.
KAYE: I like that.
SIMON: Well, I have never seen the movie. Have you seen it?
KAYE: Yes.
SIMON: "Snakes on an Airplane (sic)?" It was a huge hit.
KAYE: Yes.
SIMON: But imagine finding snakes in a hotel room.
KAYE: True story, really. In Fairfax County, Virginia, officials investigating a very strange odor discovered what the odor was -- more than a dozen slithering surprises -- that just gives me the creeps -- in one of the rooms. The snakes have been taken to an exotic animal zoo. Yuck.
If I walked in on that, I don't know what I would have done. It's just not my thing.
SIMON: All right.
KAYE: But first, "HOUSE CALL" with Dr. Sanjay Gupta starts right now.
