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American Morning
Iran Supreme Leader Orders Election Fraud Investigation; Administration Questions Contested Election; Government Regulators to Hold Airline Summit; A Look at the President's "Czars"; College Student Accused of Murder on Trial in Italy
Aired June 15, 2009 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Well, good morning and welcome to AMERICAN MORNING. It's Monday, it's June 15th. I'm Kiran Chetry. We have T.J. Holmes with us this morning in for John Roberts. Good to see you.
T.J. HOLMES, CNN ANCHOR: Back for the day. Always good to be with you guys. Usually in and out of New York but it's always good to visit with you.
CHETRY: Stick around for three hours.
HOLMES: I'll stick around for three hours and I'm gone. But we've got a lot to get through these three hours. We will start, though, with breaking news out of Iran, situation we've been watching over the weekend.
Defiant demonstrators pushing Iran to the brink after the landslide re-election of Ahmadinejad. Also just moments ago, Iran's Supreme Leader reportedly ordering an investigation into claims of fraud.
Is that really a real investigation or is this just a ploy to quiet some of the opposition? In a moment, we'll be live in Tehran.
Also this morning, the White House supposedly watching the situation and openly criticizing the fairness of Iran's contested election. You'll hear what Vice President Joe Biden has to say about President Mahmoud Ahmadinejad's claims that he won fair and square.
Also, your safety in the skies. Federal regulators holding a rare airline industry summit today to address some major concerns about the safety of passengers flying the nation's regional airlines. CNN's Allan Chernoff spotlighting those for us this morning.
CHETRY: We begin though with breaking news. A major development as thousands of Iranians openly challenge their government and also the legitimacy of the re-election of President Mahmoud Ahmadinejad. This morning, Iran's supreme leader is ordering an investigation now into allegations of election fraud.
This news coming in just within the hour. The move comes after a weekend of violent protests on the streets of Iran. There are police on motorcycles attacking protesters with batons and tear gas. And this morning as the tensions on the ground rise, there were new questions about a planned march on the capital.
Chief international correspondent Christiane Amanpour is on the ground in Tehran. She joins us on the phone this morning.
And, Christiane, a lot of these developments happening in the last 30 minutes. Explain to us again the supreme leader saying that this can be challenged?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (via telephone): Well, what he's saying is according to Iranian law, one can challenge the election results. However, he has, according to state television, said to Mousavi, that if he has any complaints then he should take them through the legal channels and the appropriate election channels, which would be the Guardian Council.
We are on our way downtown right now trying to see whether what we've been told by the Mousavi camp is actually true, and that is that he is apparently planning to appear to appeal to his supporters not to march and not to demonstrate. This after supporters had spontaneously were running from one to another, called for another show of people power on the streets today. And then early this morning there was a communication with the interior ministry saying that any type of demonstration would be illegal.
So now, we're going to see whether Mousavi, who has not been seen since Friday night, press conference late Friday night declared himself the winner. We're going down to see if, in fact, he shows up.
In the meantime, the streets of Tehran are by and large very calm. We have heard reports of some scuffles at and disturbances at Tehran University but, by and large, at this point everything very calm -- Kiran.
CHETRY: All right. So the video that we're seeing of all of these protests obviously taking place hours before now. You also had a chance to ask a question of President Ahmadinejad when it came to the safety of his challenger Mousavi. Tell us more about what happened in that exchange.
AMANPOUR: Well, I did ask him that, because there have been many of the opposition as it is (ph) and leaders of the reform camp that have been arrested and nobody knew quite what has had happened to Mousavi. There were a lot of conflicting comments. And he was meant to be his home and surrounded by security. And I asked him since Mr. Ahmadinejad had said obviously that he was now the president of all Iranians, whether they had voted for him or not, would he guarantee Mr. Mousavi's safety. And I asked him twice because I got a very round-about answer to that which -- you know, it's hard to decipher what exactly he said because it's all very oligarchal (ph).
He talked about a football match and people being upset because -- that's (INAUDIBLE) why they were in the streets. And then he said, somebody may have run a red light and in that case they would be fined. So that's what he was suggesting that Mr. Mousavi has run a red light by questioning the election results and therefore was being "fined or punished." We're still waiting to see whether he turns up in public today and what he has to say.
CHETRY: All right. Well, we're going to be checking in with you throughout the morning, Christiane. Again, the worldwide resources of CNN on display here. We have Christiane following the latest developments in the aftermath of the elections from Tehran. Christiane, thank you.
And again this morning, this just coming in within the hour that Iran's Supreme Leader is ordering an investigation into allegations of election fraud. Exactly what that means we're going to be finding out a little bit later. We're going to put that into context with some of our Iranian experts as well throughout the show -- T.J.
HOLMES: Washington keeping an eye on the fast-moving developments in Iran as well. There are some questions in Washington about what the election results will mean for U.S. relations with Iran.
CNN's Suzanne Malveaux live for us in Chicago this morning ahead of the president's trip there.
Suzanne, good morning to you. And this whole situation in Iran now puts the administration in a bit of a spot.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know, it's a difficult position for the administration. I actually asked President Obama on Friday about how important this election was to real change, and he told me he was very excited about this. That there was really a new opportunity for people to take a look at different approaches and that it was ultimately up to the Iranian people to decide.
But then he was also cautious as well, you know. He said that this was a chance for them to either way, whichever way this went, that it would offer some sort of possibility for new ways of engaging because of what he called this robust debate. Obviously, T.J., that's real optimistic. That is the public line that the administration is putting out there.
There was a profound sense of disappointment over the weekend from senior administration officials when they were looking at this election and thinking this is a lost opportunity here. Obviously, they want to engage with Iran in this dialogue. New leadership would help, but they're being very cautious about stepping in or overstepping, perceived overstepping in this election.
I want you to take a listen to what Vice President Biden said over the weekend.
(BEGIN VIDEO CLIP)
JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: We don't have all the details. It sure looks like the way they're suppressing speech, the way they're suppressing crowds, the way in which people are being treated that there's some real doubt about that. I don't think we're in a position to say.
It was surprising that the assertion was he won by what? Sixty some percent of the vote. And so I think we have to wait and see.
(END VIDEO CLIP)
MALVEAUX: So really, just the question of whether or not he legitimately won really puts the United States in somewhat of a spot (ph) here because they have to deal with Ahmadinejad, if, in fact, he is the leader who will continue. It has been difficult so far, and now there is this whole question, T.J., about whether or not he's actually even won this, if he is the legitimate leader for the Iranian people. And the Obama administration, the president trying to emphasize that it is the Iranian people, those on the ground, those who cast the ballots who really have a stake in their future and that those are the people the United States are trying to reach -- T.J.
HOLMES: All right. Suzanne Malveaux for us in Chicago ahead of the president's visit there.
Suzanne, thank you so much this morning.
CHETRY: Also this morning, government regulators are convening an air safety summit. They want to address growing concerns about the way that regional airlines do business. The deadly crash of a commuter airline near Buffalo, New York back in February raised a lot of questions about both pilot training as well as safety procedures that could put your life at risk.
The meeting will begin just two hours from now and CNN's Allan Chernoff has been reporting and uncovering a lot of these safety issues for us.
And, Allan, you know, we don't always hear about these airline safety summits. What do we expect is going to go on today?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Kiran, it is not every day that we have an airline safety summit. And I think it's a reflection of the concern at the top ranks of regulators at the Department of Transportation and at the FAA. In fact, the transportation secretary, Ray LaHood, the FAA administrator, Randy Babbitt, both of them have ordered inspectors to immediately examine training programs at the regional airlines and they'll be focusing on that issue among others at today's airline safety summit.
A very important meeting. People from all over the industry joining in Washington this morning. Now, if we look back to the NTSB hearing on that Buffalo crash, that really revealed some major problems.
First of all, a pilot of that plane that crashed near Buffalo remembered killed 50 people back in February. The pilot had not been trained hands-on with the stall warning system. When the stall warning system did go off, he did the wrong thing. He responded incorrectly. And the copilot revealed in the cockpit that she was afraid of flying in icy conditions, did not have much experience there as well. Those are major issues. Do they exist at other regional airlines? That's something that is being examined as well.
Now the FAA says there is one standard of safety for main line carriers, for regional carriers. But the inspector general of the Department of Transportation last week told Congress he doesn't see it that way.
(BEGIN VIDEO CLIP)
CALVIN SCOVEL III, DEPARTMENT OF TRANSPORTATION INSPECTOR GENERAL: Our work has identified a number of significant vulnerabilities that must be addressed. This will require actions in areas FAA has already targeted for improvement as well as other areas where FAA will need to revisit differences in standards and regulations and rethink its approach to safety oversight.
(END VIDEO CLIP)
CHERNOFF: So hopefully the summit today is going to deliver some improvement, some answers to these very important issues.
CHETRY: All right. Allan Chernoff, you'll continue to follow that for us. Let us know how it goes. Thanks so much.
HOLMES: All right. Also new this morning, dangerous new warnings from North Korea expected to dominate a meeting between President Obama and South Korea's president tomorrow over the weekend. The North promised to step up its nuclear program after the United Nations imposed new sanctions.
Also brand-new this morning, it's his now. Four-star U.S. Lieutenant General McChrystal now in charge of American and NATO troops in Afghanistan. New video just in to CNN shows the formal handover of command to McChrystal from General David McKiernan. General McChrystal has a long history in special operations. He's expected to bring a more unconventional approach to an unconventional war that has turned increasingly violent. Fifty-six thousand U.S. service members are now in Afghanistan.
Also, the Los Angeles Lakers, they are the champs. And the LAPD not too happy about -- well, for this reason. There's some fallout after the championship. More than two dozen people were arrested after fans celebrated near the streets near the Staples Center. Things got a little out of hand, throwing rocks, bottles, setting bonfires. Meanwhile on the court, however, the Lakers won their 15th title beating -- yes, never really understood that.
CHETRY: What happened if they lost? Your team wins, you set a fire.
HOLMES: Yes. It's tradition, right? Sorry. No, it's not the way to do it, folks. But, yes, on the court, Lakers win series four games to one to beat the Magic 99-86 who didn't even put up a good fight last night and had to be staying up late for no reason.
Kobe Bryant was named MVP, of course. It's also the tenth championship for Coach Phil Jackson, now the winningest coach in NBA finals history.
CHETRY: Wow.
HOLMES: Yes, he's a big guy.
CHETRY: The magic touch. Sorry you stayed up.
HOLMES: Yes. Me, too. I don't look too bad, do I?
CHETRY: No. I slept, and you look better.
All right. Eleven minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. It's 13 minutes past the hour now, and we're following breaking news this morning in the disputed Iranian presidential election.
This morning Iran's supreme leader, the Ayatollah Ali Khamenei is ordering an investigation into allegations that the reelection of President Mahmoud Ahmadinejad was marked by fraud. This dramatic decision comes after a violent uproar over who actually won Iran's presidential election.
Fawaz Gerges is a Middle Eastern expert at Sarah Lawrence College. He also wrote the book "Journey of the Jihadist: Inside Muslim Militancy." He joins me this morning.
Thanks so much for being with us.
FAWAZ GERGES, MIDDLE EAST SCHOLAR, SARAH LAWRENCE COLLEGE: Good morning.
CHETRY: So, this news about an hour before we went to air came across the wires about the Supreme Leader ordering an investigation into claims of fraud. Is this just a show to tamp down protests or could something actually change because of this?
GERGES: Well, I think it's about time. I think it's a good start. But I think the Guardian Council who is in charge should order a full recount of the votes with the presence of independent voters.
You see, Kiran, this is not about 10,000 votes or 100,000 votes. According to some Iranians, I mean, almost 10 million votes were taken from Mousavi, the oppositional candidate and given to Ahmadinejad.
Widespread accusations basically have taken place according to independent Iranian analyst. And in this particular sense what you need is a full recount of the vote with the presence of independent observers. I hope this is really the beginning of a serious analysis of the situation. CHETRY: How would that happen? I mean, even the candidates themselves before they can even run are culled, right? They have to sort of get the approval through the council. So how would an independent vote, a recount even take place in Iran?
GERGES: Well, the votes are there. I mean, this really, it takes political will. And absolutely, I mean, I think you're raising a very important question.
I mean, Mousavi, the oppositional candidate, is a loyal son of the Islamic revolution. He has been part of the inner political circle of the regime itself. The fact is that the ultraconservative mullahs are terrified that Mousavi tells you a great deal about the crisis at the Islamic base regime in Tehran. There's a major crisis taking place in Tehran today, and the outcome, the final outcome exposes the deepening crisis for the regime itself.
CHETRY: And so what is the fallout then if there are people after two days of protests, demonstrations who are dissatisfied and feel that, you know, their voices were not heard? I mean, what is the fallout potentially for the Iranian government.
GERGES: You know, Kiran, the survival of the Islamic base regime is not at stake. This is a relatively stable regime. What we're talking about is a crisis legitimacy and authority, the loss of public support, the ability of the government to govern effectively and pursue foreign policy. And no regime ever can sustain itself based on coercion and force. You need public support.
And here you have now millions of young voters, in particular female and young voters who represent about 70 percent of the population, believe that the election was stolen, believe that the political will was not reflected by the final outcome, believe that the ultraconservative mullahs basically have cheated them out of the election.
This is a serious crisis because there is a deepening divide taking place...
CHETRY: Right.
GERGES: ... between the young and female voters who represent 70 percent of the population and ultraconservative mullahs who are out of touch with the hopes, aspirations and fears of their population.
CHETRY: So, does this present an opportunity then for the Obama administration or greater difficulty in trying to have some sort of dialogue with Iran?
GERGES: You know, Kiran, the best thing the Obama administration could do is what it's doing today, stay out of it. Keep a low profile.
I mean, remember in the past, I mean, what were the basic labels, death to America. America was trying to basically intervene in internal Iranian affairs. This was the conventional wisdom. Now what do you hear in Tehran? Down with the dictator, death to the dictatorship. And this is a testament to how Barack Obama has been able to diffuse the mine field of relations between the United States and Iran and basically shift the debate into internal affairs.
What's happening, Kiran, in Iran today is about internal politics in Iran itself. Most Iranians now realize the problem is not with Barack Obama, their problem with the dictators that have cheated them out of this particular election.
CHETRY: All right. Very interesting to see where this goes from here. Fawaz Gerges, Middle Eastern scholar at Sarah Lawrence College, thanks so much for joining us this morning.
(COMMERCIAL BREAK)
HOLMES: Let's just take a (INAUDIBLE) Why? Come on. Stephanie, I mean -- Stephanie, good morning, my dear friend.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Top of the morning. Good to see you, my friend...
HOLMES: Good to see you.
ELAM: ... in person.
HOLMES: I forgot what we were supposed to be talking about but I know I'm supposed to say you're "Minding our Business."
ELAM: Yes. It's because of those cherries I gave you this morning, right?
HOLMES: It's "Minding Your Business" this morning.
CHETRY: Did you get it in Michigan?
ELAM: No, I didn't.
CHETRY: Cherry barbecue sauce.
ELAM: Oh, OK.
CHETRY: Maybe you took a trip, you know, as part of "Minding Your Business"?
ELAM: No, I'm fresh out. I'm going to have to research that, though.
What I'm talking about is not nearly as fruity or happy to have. But we are going to take a look at the markets really quickly to tell you that in case you've been wondering since March, the markets have done a little bit of a rebound here. Let's take a look.
We've got the Dow up just about -- let's see, in the last 12 of the 14 weeks, it's gained 33 percent. Back in the black for the year -- I know small cheer, but we'll take it. Nasdaq up for two and eight-month high. The S&P 500 at a seven-month high.
But take a look at that little graphic. You see last week we started finding a little bit of flattening points there but still moving back up. So that's good news. But before we get all excited about that, there's still some major things that have to occur in the mind of President Obama and his team. So they're looking to make some major regulation changes to the way the financial markets have been watched, because nothing has really been made this sweeping since the '30s. And they're taking a look at it because we've had the most severe financial downturn since the Great Depression. That's how they're looking at this.
So, looking for some changes here. We probably will see some changes in the agencies that are overlooking these -- all of the things that happen on Wall Street. So, you're talking about the FDIC. You're talking about the Fed. You could see the SEC involved in this as well.
We don't know if there will be some agencies that are combined, some of that are let go. That's what we'll be looking for. But on Wednesday, President Obama is expected to lay out his plans there for better coordination among agencies. Also, giving the government more power to unwind companies that are deemed too big to fail.
The idea being, give the government more power to step in. There are some things that will spiral out of control as we saw happen in the fall of last year. And the last thing there, give consumers more protection. Maybe even create a new agency that would allow for protection of consumers there, talking about credit cards, anything that could affect how we interact with the economy, which is actually huge because the consumers -- two-thirds of the economic power in this country.
So basically, they're going to have to take this to Congress after Congress has said it can look very different than what President Obama is proposing. And after the time they vote on it, fall, by the time this goes into law end of the year.
HOLMES: Wow.
ELAM: So, don't look for any changes right away.
HOLMES: So you're ahead of the curve on the story.
ELAM: Well, you know, they're going to be talking about it this week. So --
HOLMES: OK.
ELAM: But by the time we have our winter coats back on...
HOLMES: All right.
ELAM: ... maybe we'll really know what it looks like.
HOLMES: All right. Stephanie Elam "Minding Your Business." We're going to see you next hour, right?
ELAM: Yes. I'll be back this hour.
HOLMES: Gas prices?
ELAM: Gas prices.
HOLMES: All right.
ELAM: See, you are with me.
HOLMES: I was with you.
ELAM: Yes, that's nice.
CHETRY: Gas prices creeping up every single day.
ELAM: Sneakily (ph).
CHETRY: Yes. I want to know what the newest prediction is.
ELAM: Yes.
CHETRY: It wasn't going up $2.50 so we're going to have to change that.
ELAM: Oh, we're going to have to change that.
CHETRY: All right.
ELAM: Yes.
CHETRY: Stephanie, thanks so much.
ELAM: Sure.
CHETRY: Still ahead, Obama, the president and his czars, a lot of people making the claim that, wait a minute, why does it seem like we have more czars than even Russia did back in the day? We'll break it down for you coming up.
(COMMERCIAL BREAK)
HOLMES: Well, hello there, everybody. Welcome back to the Most News in the Morning.
The president and his czars. Senator John McCain has joked that President Obama has more czars than Romanovs who ruled Russia for three centuries.
We want to turn now to CNN's Carol "the czar" Costello, who is keeping an eye on this story for us from Washington.
Good morning to you, kind ma'am. We hear this term thrown around all the time, the czar this, the czar of that. He's got a lot of them. What are they doing?
CAROL COSTELLO, CNN CORRESPONDENT: Did you call me bizarre?
HOLMES: Not bizarre. I've heard you described as such, but not -- I didn't do it this morning.
COSTELLO: Thank goodness. Well, you're right, Tony. I'm sorry.
HOLMES: Oh, goodness.
COSTELLO: God, you're right, T.J.
HOLMES: I thought you want to start the day with me.
COSTELLO: Poor T.J. He's being abused in the morning. I'm so sorry.
HOLMES: It's quite all right.
COSTELLO: Anyway, you are right, T.J. Critics say President Obama has gone czar crazy, appointing more than 20 of them so far. Critics are not so happy about that saying there is a reason behind the czar madness, and it's not good.
(BEGIN VIDEOTAPE)
COSTELLO (voice-over): That's the movie version of "Ivan the Terrible," the legendary 16th-century czar of Russia. Who wouldn't quake in their boots at the sight of him?
But what about drug czar Gil Kerlikowske, or economic czar Paul Volcker, or even environment czar Carol Browner? They don't exactly inspire an "Ivan the Terrible" kind of fear.
UNIDENTIFIED MALE: Deliberative.
COSTELLO: But they certainly inspire concern. Republican Senator John Barrasso calls czars like Carol Browner Obama's puppetmaster because she has not been confirmed by Congress and there is no way for Congress to hold her accountable for her actions. You know, sort of like a czar.
JOHN WALTERS, BUSH ADMINISTRATION DRUG CZAR: For the title "czar," you are asking for it.
COSTELLO: John Walters was drug czar for President Bush. Armed with a big staff and a major policy voice, he understands why some are sensitive about the title.
WALTERS: People have given their lives and risked their lives to make sure there's nothing like a czar ever in terms of someone who is a tyrant.
UNIDENTIFIED MALE: And I hope this...
COSTELLO: And President Obama's critics are playing into that Russian tyrant thing. Republican Eric Cantor compared the president's economic policies to former Russian President Vladimir Putin. And Rush Limbaugh...
RUSH LIMBAUGH, HOST, "THE RUSH LIMBAUGH SHOW": He's a statist. He's an authoritarian. He wants to rule. He doesn't want to govern.
COSTELLO: But the University of Virginia's Larry Sabato who wrote "The Year of Obama" says the title "czar" is mostly to make a tough government job sound more attractive.
LARRY SABATO, POLITICAL ANALYST, UNIVERSITY OF VIRGINIA: If you're going to recruiting somebody from the private sector and you're asking them to do without several million dollars a year in compensation, I suppose it's a nice balance to be able to say, but you'll be a czar.
COSTELLO: Still, there are signs some of Obama's own czars are backing away from the title. The new pay czar, Kenneth Feinberg, telling NPR...
KENNETH FEINBERG, PAY CZAR: I recoil when I hear or read in the press that I'm some type of compensation czar. Like I'm going to issue imperial edicts against company officials. I think that's a very poor choice of a noun describing my role.
COSTELLO: Feinberg's title, special master. His job, to oversee compensation practices of the companies bailed out by the government.
(END VIDEOTAPE)
COSTELLO: The title "special master," so how much power does a czar or a special master have? Well, less than a secretary and more than a staffer, or as the Obama administration told the "Chicago Tribune," the czars are needed to focus on the president's toughest tasks such as overhauling the health care system, which will require cooperation from several agencies. The czar's job is to move among the agencies and coordinate.
So there you have it, T.J.
HOLMES: All right. Special master and coordinators and czars, Carol Costello with all the names. And again, I'm T.J. Nice to meet you. Have a good one.
Also, if you want to join the conversation, read more about Carol's stories, you could check out her blog at cnn.com/amfix.
CHETRY: All right. We're coming up to the bottom of the hour now.
We're following breaking news this morning. Iran's supreme leader is now ordering an investigation into allegations of ballot fraud. The news coming just hours before thousands of Iranians were expected to meet on the streets of Tehran for an illegal rally organized by opposition leader Mir Hossein Mousavi. Mousavi's campaign Web site says that he plans to attend these demonstrations. Now if he does, it would be his first appearance since Friday's vote.
A high-tech U.S. Navy listening device is now in the Atlantic, and it's ready to help try to locate the Air France Flight 447 voice and data recorders. These devices will not be used -- or that device will not be used until the military can be sure that it's not going to interfere with a French nuclear submarine that's already in the area. The signal from the so-called black box should begin to fade in about 15 days. So time is of the essence as they try to search for clues as to what brought that plane down.
Also, for the 48th straight day, gas prices are on the rise. Overnight, rising to $2.67 a gallon nationwide. It's up more than a penny from yesterday. Since the end of April, gas prices have soared more than 62 cents.
President Obama will make a major push for health care reform this week. It starts today when he addresses the American Medical Association meeting in Chicago. That group has some major reservations about the president's proposal for a public health care option. And a prominent Republican is also talking about it. We're putting his comments to the Truth-O-Meter test.
And for that, we turn to Bill Adair. He's the founder and editor of the Pulitzer Prize-winning PolitiFact.com. He joins us from Washington this morning.
Good to see you this morning, Bill.
BILL ADAIR, EDITOR, POLITIFACT.COM: Good morning.
CHETRY: All right. So, Republicans have been quick to jump on the president and Democrats about this health care reform proposal, calling it, quote, "socialized medicine." Also speaking out against this so-called public health care option.
And here is what Karl Rove said in an op-ed in the "Wall Street Journal." Quote, "Under a public health care option, 120 million Americans will lose what they now get from private companies and be forced into government-run rolls as businesses decide it is more cost- effective for them to drop coverage."
Also, we had Congressman Mike Pence say something similar on CNN's "STATE OF THE UNION" yesterday.
How true is that claim that under this public health care option 120 million Americans would lose the insurance they now have from private companies?
ADAIR: We gave that one a "False" on our Truth-O-Meter on PolitiFact. And the issue here is the word "forced." What Rove is citing is a study by the Lewin Group. But he's not noting that this is the most extreme option that the Lewin Group considered.
Indeed, what the program envisions is something of a free market, where people could choose the public option, it being an option, and depending on how it's constructed, you may have more people choose to go there. But they wouldn't be forced as he says. So he gets a "False" on the Truth-O-Meter.
CHETRY: All right. There's a lot being said about reforming health care. A lot of debate going on right now on the health care issue. So how do people know especially when people seem to cherry pick from various studies? How do you know what's valid and what's not?
ADAIR: Well, it's important to look at who did the study. In this case, for instance, it was done by the Lewin Group, a very well- respected group. But it's important to know that they're a subsidiary of UnitedHealth Group, which provides private health insurance, which has a big stake in this. So it's important to look at who's doing the study, and probably look at multiple studies and also make sure that you're clear on what the option is that they're looking at.
CHETRY: All right. Now, the federal government is also spending billions to bail out our nation's banks. It's coming out of taxpayers' pockets. But listen to what President Obama said about this earlier in the week.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: While we know that we will not escape the worst financial crisis in decades without some losses to taxpayers, it's worth noting that in the first round of repayments from these companies, the government has actually turned a profit.
(END VIDEO CLIP)
CHETRY: We have President Obama saying that the government is basically making money off of bailing out the banks. What does the Truth-O-Meter say?
ADAIR: We gave that one a "True" on the Truth-O-Meter. This one -- this one surprised us. I think, like a lot of Americans, we went into this thinking that the bank bailout was going to cost taxpayers a lot of money. It still is likely to.
But in the case of these 10 banks, they repaid about $68.8 billion and the government made about $1.8 billion in dividends from that. The government also stands to get some warrants to buy stock in these banks. So Obama is right on this one, at least, there was a profit.
CHETRY: All right. Well, President Obama has also been making an effort to repair U.S. image abroad, especially in the Muslim world since taking office. And in a recent interview with Canal Plus Television, he said, quote, "If you actually took the number of Muslim Americans, we'd be one of the largest Muslim countries in the world." Is that is a true statement?
ADAIR: It's not. It's way off. This one earned a "Pants on Fire" on our Truth-O-Meter. Yes, sound the -- sound the fire alarm.
CHETRY: I had not heard that -- I had not heard that sound affect. But this is actually the first time that we've had a "Pants on Fire," haven't we, for the president?
ADAIR: It is. Since he's taken office, this the first one. He's just way off. The numbers here depending on what estimates you use, if you use the CIA's estimate, the U.S. ranks 29th. If you use -- excuse me, the U.S. ranks 58th. If you use another estimate, it's a little larger. The U.S. comes in 29th. But he's way off. So Obama gets his first "Pants on Fire" since he took office.
CHETRY: Wow. All right. Bill Adair, founder and editor of PolitiFact.com, thanks for helping us keep them honest today.
ADAIR: Thanks, Kiran.
(COMMERCIAL BREAK)
HOLMES: Good morning. Welcome back, everybody, to the Most News in the Morning.
Don't -- please don't adjust your dials and change when I say this name. Rod Blagojevich. Just stay with me for a second. He is stepping back into the spotlight. Seems like he never really left, but back for a few minutes at least.
Look at this folks. Over the weekend, surprised the audience at a comedy show in Chicago that pokes fun at almost every aspect of his own life, from his wife to the rise and fall of his political career.
Jason Carroll, are you kidding me?
JASON CARROLL, CNN NATIONAL CORRESPONDENT: No. I wish I was. This is -- this is definitely bizarre. Well, you remember his reality show deal fell through. Didn't seem to stop him. He's back, ladies and gentlemen.
The former Illinois governor made a special appearance Saturday night at Second City's production of "Rod Blagojevich Superstar" in Chicago. As the curtain rose, there was Blagojevich with his arms stretched out mimicking a crucifixion. The play, a parody of "Jesus Christ Superstar," it lampoons his rise and fall in politics. He opened the production with a monologue.
(BEGIN VIDEO CLIP)
ROD BLAOJEVICH (D), FORMER ILLINOIS GOVERNOR: What they say to you before you go out on stage, I thought it was very interesting, and that is, we got your back. I've been in politics. That's not anything that anybody ...
(END VIDEO CLIP)
CARROLL: Well, as Blagojevich left the stage, the cast launched into a song that asked "What kind of idiot sells a Senate seat?"
Of course, Blagojevich was indicted on charges he tried to sell President Obama's old Senate seat. The former governor stuck around -- stuck around after the show to participate in some improve, where he took issue with a particular part of the show.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: That brush he had, it's too small.
(END VIDEO CLIP)
CARROLL: Well, the reviews are mixed. Some audience members cheered throughout the show. Others found it just a little bit awkward.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He laughed a few times. He was quiet a few times. It was queasily uncomfortable even sitting behind him a few times.
UNIDENTIFIED FEMALE: He was funny, even making light of himself, making jokes about himself.
UNIDENTIFIED FEMALE: You have to give him props for that. Right. I mean, he's a good spirit about it.
UNIDENTIFIED MALE: Very personable. He had a fabulous memory of people, events. You know, he just overstepped. I mean, it's greed and ego and money.
(END VIDEO CLIP)
CARROLL: Well, the play was supposed to have its final performance this month, but due to its popularity, Second City has decided to extend it until August.
Meanwhile, Blagojevich is facing as much as 20 years in prison if convicted on some 19 counts including racketeering and extortion. He's also going to probably have to pay $1 million in fines if he is convicted on all of those counts, but --
CHETRY: His wife, isn't she actually on that show that he couldn't participate -- "I'm a Celebrity, Get Me Out of Here!"
CARROLL: When you look at his mounting legal bills, he's got to find some way of paying. There's no indication also in this performance in terms of how much he was paid for, but doesn't seem to be going away any time soon.
HOLMES: All right. This is a one-time thing for him, but the show goes on. He's not going to be on it.
CARROLL: Correct.
HOLMES: All right. Jason Carroll, we appreciate your reporting.
CARROLL: All right.
CHETRY: Thanks, Jason. Forty-three minutes past the hour.
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HOLMES: Good morning, everybody. Welcome back to the Most News in the Morning. A live look at the Capitol in Washington, D.C., where it's 66 right now. Could be up to 76. Beautiful day there, but could be a thunderstorm a little bit later in the day.
Meanwhile, it 45 past the hour. We're going to fast forward through the stories that will be making news later today.
This morning, at 11:15 Eastern Time, President Obama takes his case for health care reform to the nation's doctors. He'll be speaking at the American Medical Association's annual conference in Chicago.
At 11:15 Eastern, former President Bill Clinton will be officially appointed a special United Nations envoy to Haiti. Part of his mission will be getting investors to come to Haiti to create new projects and jobs in that impoverished country.
Also, at 2:15 Eastern Time, First Lady Michelle Obama introduces the White House Music Series featuring artists of all ages. It begins today with a Jazz Studio workshop. One hundred fifty students will take part in classes led by jazz greats Wynton, Branford and Ellis Marsalis.
CHETRY: Wow. All right. Well, it's 46 minutes past the hour.
We check in with Rob Marciano. He's looking at extreme weather for us today.
I'm trying to find a part of the country where it's not going to be pouring.
(WEATHER REPORT)
CHETRY: All right. Thanks, Rob.
Forty-eight minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning.
An American college student on trial in Italy. She's accused of murdering her roommate. Her father says his daughter took full advantage of her opportunity to testify to tell her side of this story.
CNN's Atika Shubert is following developments from London and joins us live.
You know, this story has been getting so much attention abroad especially in Britain. What's the latest? ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Especially here. There's a lot of sympathy for the family of the British roommate Meredith Kercher, but not so much for Amanda Knox. Nickname here is "Foxy Knoxy." And they've been following this case avidly.
Now, the was the first time over the weekend that the Italian court could hear directly from Amanda Knox, her version of events. But she faced very tough questions from prosecutors.
(BEGIN VIDEOTAPE)
SHUBERT (voice-over): Amanda Knox appeared calm and collected in two days of court hearings despite sometimes testy exchanges with prosecutors. Media were removed from the court room to avoid, quote, "sensationalism," but watched on close circuit TV nearby. Knox maintained in fluent Italian that police bullied her into making false statements that placed her at the crime scene, including slapping and hitting her. But police denied those claims.
AMANDA KNOX, SUSPECT (through translator): Because I was not sure whether it was my imagination or whether it was reality. And therefore, I wanted to say that I was confused and that I could not know. But at the same time I knew I have to sign these statements.
SHUBERT: The murder and sexual assault of British exchange student Meredith Kercher has grip this picturesque Italian town. Newspaper headlines have dubbed the young and pretty Knox as, quote, "angel face." Other tabloids have taken to using her nickname "Foxy Knoxy."
But what happened that night is still a mystery. Italian police and prosecutors allege that three suspects were involved in what they call a drug fueled sex game.
Ivory Coast native Rudy Guede has already been convicted and sentenced to 30 years in prison. He is appealing the ruling. But Amanda Knox and her former boyfriend, Raffaele Sollecito, remain on trial. Both say they are innocent. Their alibis, they were together that night in his apartment.
Police say they have DNA evidence that places both at the scene of the crime. Amanda Knox's family was there at court to support her side of the story.
CURT KNOX, FATHER OF AMANDA KNOX: I think she did a great job today. And you know, as we continue to have this trial unfold, I think we're going to see more and more that she's innocent, as she is.
SHUBERT: But members of the public observing at the court don't seem convinced.
"I still have my doubts," said this man. And another said, "My view after listening to her today has changed, but not for the better. I feel she didn't really answer the questions."
The trial is likely to drag on for a month, yet a verdict is not expected until the autumn.
(END VIDEOTAPE)
SHUBERT: Now the trial is going to resume on Friday, but Knox is not expected to testify. Both Knox and Sollecito face possible life imprisonment if convicted - Kiran.
CHETRY: Atika Shubert for us this morning from our London bureau.
Thank you.
HOLMES: A couple of major issues on the plate for Barack Obama these days. One, health care, also, Iran. What to do there?
Our CNN contributor Bill Bennett is live after the break.
(COMMERCIAL BREAK)
HOLMES: Welcome back, everybody, to the Most News in the Morning. We're just about five minutes to the top of the hour.
A battle on two fronts this week for President Obama. At home, he's trying to turn a campaign promise into reality by reforming health care. Overseas, the administration watching a building storm over Iran's disputed election when the protesters now saying was stolen away from them.
Here to offer his take, CNN contributor Bill Bennett joining us this morning from North Carolina.
Sir, good to have you as always.
Tell us first on Iran what should he be doing right now? What can the president really do given the situation being what it is in Iran.
BILL BENNETT, CNN POLITICAL CONTRIBUTOR: I think it's time to shift gears a little bit, T.J., and to let people know that he's on the side of the people and not the side of this government. The evidence is mounting that this election was stolen.
Independent reporters from various provinces suggest that Mousavi had more votes than Ahmadinejad. So there's that problem. You know, Obama was supposed to be pushing the reset button and we were supposed to be having a whole new relationship with Iran. Doesn't look that way.
Support communications efforts of people who are trying to get strikes and reform against this government, broadcast that you were in favor of the people. This is just going to create more cynicism about Iran.
HOLMES: But Bill...
(CROSSTALK) BENNETT: The idea that he could get a new start with Iran -- yes?
HOLMES: Yes. Does that make it more difficult, though, if he does end up having to deal with later, Ahmadinejad, if he comes out -- I'm not saying on the side of the people, but, still, that might be seen as being against Ahmadinejad who he still might have to deal with for the next several years.
BENNETT: He may still have to deal with him. But, remember, you're not really dealing with Ahmadinejad either. You're dealing with Khamenei, you're dealing with Mullahs, the supreme rulers. Those are the ones who really make the difference in Iran.
The American people democracy should be on the side of democracy, should be on the side of the people in Iran. And I think this last event, this election just shows that a lot of skepticism and cynicism about Ahmadinejad and the supreme rulers is justified.
Yes, it's going to be messy. But better to be messy on the side of democracy than clean, if you will, on the side of autocracy.
HOLMES: So even on that point you made about -- and it is, it's a democracy, ruled and taken care of by these clerics. So on that point, does it really matter that much who the president is? Maybe that president maybe has a softer line. Mousavi, maybe not such a hard line and make such inflammatory statements. But, still, does it really matter that much who the president is?
BENNETT: Not as long as the supreme rulers are in charge. Not as long as the Mullahs are in charge, which is the case there. But the point is we represent democracy. This was scoffed at before, but you're not going to be able to deal with Ahmadinejad and these people anyway. So let's get on the right side of this effort and stop this notion that he could somehow open up and transform Ahmadinejad or the supreme rulers, the supreme leaders, I should say, into people you can negotiate with. You can't.
HOLMES: All right. Let's take a quick shift here. Try to get in a couple of questions about health care here in this country.
BENNETT: Sure.
HOLMES: I guess the battle lines are being drawn here. But are Republicans going to go along with any plan that creates a government- run health insurance program?
BENNETT: I think probably not. I think that's one of the sticking points. I was encouraged yesterday by Kathleen Sebelius that she wants something she says that has choice and competition, T.J. That's a good thing.
But I'm not sure the Republican opposition is the critical factor now so much as Democrat dissent. I mean, there are two Senate plans. There's a house plan, and there's a vague version of the White House's plan. Bill Clinton had a lot of trouble with this. And it looks like Barack Obama is having trouble with it, too. The major sticking point, just to be quick, because I know we're limited on time is the spending, the money. Where are they going to get the money? And it looks as if they're going to have to increase taxes somewhere to get this, and this is not popular right now.
HOLMES: Yes. Increase taxes maybe on some of those health benefits. Something he said he certainly would not do. We'll see how that one plays out.
BENNETT: Right.
HOLMES: Bill Bennett from North Carolina. Good to see you as always.
BENNETT: Thank you very much, T.J. Appreciate it.
HOLMES: All right.
