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Traumatized Troops; Robert Gates: Taliban Has the Momentum; Antiwar Activists Target White House

Aired October 06, 2009 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: The secretary of defense telling CNN the Taliban have the momentum in Afghanistan right now. It's been nearly eight years since "Shock and Awe" began. How in the world did this happen? And how does the U.S. push forward and get the mo back? By sending more troops in, by changing tactics?

Well, there doesn't seem to be a one-size-fits-all solution. The president, Congress and military are all looking to get on the same page ASAP, but so far the solution seems to be AWOL.

This hour, the president answers questions from lawmakers and picks their brains for ideas.

One idea that's off the table, leaving anytime soon. That's the word from Secretary Gates. Check out what he's told CNN's Christiane Amanpour in this exclusive interview at George Washington University.

(BEGIN VIDEO CLIP)

ROBERT GATES, U.S. DEFENSE SECRETARY: We are not leaving Afghanistan. This discussion is about next steps forward. And the president has some momentous decisions to make. And while there may be some short-term uncertainty on the part of our allies in terms of those next steps, there should be no uncertainty in terms of our determination to remain in Afghanistan and to continue to build a relationship of partnership and trust with the Pakistanis.

(END VIDEO CLIP)

PHILLIPS: You just saw Secretary Gates there. And also, Secretary of State Hillary Clinton, she was part of Christiane's discussion, too, along with our Frank Sesno. He used to be our bureau chief in D.C. He's with George Washington University right now.

And Frank talked about Gates' tone in that interview and about the wider debate that's going on in Washington.

(BEGIN VIDEO CLIP)

FRANK SESNO, FMR. CNN WASHINGTON BUREAU CHIEF: I thought he was emphatic in a couple of places saying that the United States is not going to end its commitment, is not going to turn its back on Afghanistan and Pakistan.

He said that the violence is up and the Taliban has been making progress, said that the problem in the region has been for too few troops in the past. And so, while he didn't tip the hand as to where the debate inside the White House, the administration, is going, his commitment or his expression of American commitment to the region was actually quite firm.

It's not this either/or decision. It's not either there's counterinsurgency or there's counterterrorism, either you put in 40,000 or you leave. And I think that's probably what we're seeing take place, as well as calibration within all that as to what's going to be asked or demanded of the Afghan government, of the allies, of the Pakistanis, that want to have this as a regional approach. So, it's a very complicated discussion that's really about calibration, I think.

(END VIDEO CLIP)

PHILLIPS: Afghanistan, Iran, Pakistan -- Gates, Clinton, Amanpour and Sesno talked about all of them. The rare and exclusive interview from George Washington University less than 60 minutes away on a special addition of "AMANPOUR."

Check it out, 3:00 Eastern, only on CNN.

Again, and we can't emphasize this enough, you're going to hear Gates tell Amanpour the Taliban have the momentum right now. Afghans say one big reason for that is because of all the dithering in D.C. In other words, they want more troops and less talk.

CNN's Atia Abawi joins us now live from Kabul -- Atia.

ATIA ABAWI, CNN INTERNATIONAL CORRESPONDENT: That's right, Kyra.

I spoke to the defense minister here in Afghanistan yesterday, and he's saying that all this talk about withdrawing troops, whether it be true or not, and not bringing in more troops, is actually helping the Taliban and encouraging the Taliban. Let's listen to what he had so say.

(BEGIN VIDEO CLIP)

ABDUL RAHIM WARDAK, AFGHAN DEFENSE MINISTER: The enemy strategy has focussed on weakening the will of the international community. And what I'm seeing today, that some people talk about an exit strategy or a date for the withdrawal of their forces, it is exactly what the enemy have planned for. This is why they have not given up since 2002. And all their preparation is based on that assumption.

(END VIDEO CLIP)

ABAWI: General Wardak -- or Minister Wardak, as he is also known -- has said that he wants these extra troops, that Afghanistan needs these extra troops. He says that the Afghan national army is not prepared yet. And for that matter, he says that the coalition troops level is insufficient, especially when you compare it to the troop level that was in Iraq, that was in Bosnia, he says.

He says that even though the public believes that they have been in Afghanistan for the past eight years, he says that the real mission, that the real focus didn't start until a couple of years ago, and there's still a long way to go. He says in the end, he wants the Afghan national army to stand on its own two feet, but right now they still need the help of the Americans and the international community -- Kyra.

PHILLIPS: Well, what if more troops do come? Do Afghans feel that the U.S. troops may become an occupying force?

ABAWI: Well, that's the big question, and that's actually a question that we put to Minister Wardak himself. He, himself, you could say, was an insurgent against the Soviet invasion back in the 1980s. In the 1980s, the Afghans did see the Soviet army as occupiers.

He says that the difference here is that the majority of the Afghan people welcome the U.S. and the international efforts. They want them to help them build Afghanistan up. They don't necessarily want the fighting, they don't want the bombs and the guns. They want construction, they want infrastructure, they want that civilian effort that President Obama promised them in March when he announced this new shift in focus to Afghanistan -- Kyra.

PHILLIPS: Atia Abawi, thanks so much.

And if you're a member of Congress with a say in national security, you're probably invited to a meeting this hour with President Obama. If not, you're out of luck.

He's bringing in legislative leaders from both parties, plus all the relevant committee leaders, to hear their views on the Afghan War. News cameras are not invited but will be right outside that door.

Peace activists aren't invited either. But you don't have to look far to find those, Americans who say the answer in Afghanistan isn't go big, it's go home.

And they told our Jim Acosta they're not going away.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): This was no Tea party.

UNIDENTIFIED MALE: Hate (ph) the wars.

ACOSTA: The swarms of noisy protesters outside the White House were giving President Obama an earful on the war in Afghanistan.

UNIDENTIFIED FEMALE: Does that look very different from the Bush regime?

ACOSTA (on camera): Are you disappointed?

UNIDENTIFIED MALE: A little bit. ACOSTA (voice-over): Protesters Wayne Young (ph) and his wife were once enthusiastic Obama voters who flew all the way from Denver for the inauguration.

UNIDENTIFIED MALE: If he escalates the war, I'll be deeply disappointed.

ACOSTA: For years, antiwar demonstrators would pull these moves on the previous man in the Oval Office. Once cheered for his opposition to the war in Iraq, Mr. Obama is finding his own catch phrases turn against him with signs saying, "Yes, we can get out of Afghanistan."

MADEA BENJAMIN, CODE PINK: We had great hopes and we feel that those hopes have been dashed.

ACOSTA: But anti-war movement veteran Madea Benjamin concedes then-candidate Obama's position on Afghanistan was clear.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Make no mistake, we're confronting an urgent crisis in Afghanistan and we have to act. That's why I sent at least two or three additional brigades to Afghanistan.

ACOSTA: But didn't he talk about it as being the good war during the campaign?

BENJAMIN: You know, some of us thought maybe - maybe that's what he felt he had to do to get himself elected, but we thought he was a level-headed person.

ACOSTA: These days they're pinning their hopes on sympathetic senators.

SEN. CARL LEVIN (D), MICHIGAN: I would not commit to more combat troops at this time. There's a lot of other things that need to be done to show resolve. What we need a surge of is Afghan troops.

CINDY SHEEHAN, ANTI-WAR PROTESTER: We will actively and courageously protest against wars.

ACOSTA: Now Cindy Sheehan, the controversial mother of a fallen soldier who made a name for herself camping out in front of President Bush's home in Crawford, Texas, is, on Mr. Obama's doorstep.

(on camera): What is the president supposed to do? I mean, bring...

SHEEHAN: He's supposed to...

ACOSTA: ... the troops home, end that war?

SHEEHAN: He's supposed to - that's what we demanded when Bush was president. That's what we're demanding when Obama's president.

ACOSTA (voice-over): The White House response? No way. ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I don't think we have the option to leave. I think that's quite clear.

ACOSTA (on camera): Those antiwar protesters were well aware of the debate going on inside the White House over what to do in Afghanistan, which is why many of them are praising Vice President Biden, who's suggesting a smaller American footprint in Afghanistan.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: It's a gut-wrenching illustration of the sacrifice made by America's service members.

These are sacred images from Dover Air Force Base in Delaware. That's where the bodies of troops killed in Afghanistan came home this morning.

The families actually gave us permission to show these emotional and very personal pictures. We don't yet have details on their lives, but we want to salute them and give you their names: Specialist Christopher T. Griffin (ph) of Kentulo (ph), Michigan; Specialist Steven L. Mace (ph), from Lovettsvile, Virginia; Sergeant Joshua Kirk (ph) of South Portland, Maine; Specialist Michael Scuza (ph) of Villas, New Jersey.

We have learned something more about the life of 22-year-old Private First Class Kevin Thompson. His high school guidance counselor said that he was a spirited kid with a tremendous sense of humor. Thompson's picture hangs on the wall of the Reno grocery store where he worked before joining the Army. They're collecting cards now and sending all of them to his mom.

He's just one of the 778 U.S. servicemen and women who have been killed in Afghanistan.

(COMMERCIAL BREAK)

PHILLIPS: Health care reform. Guess what? We don't have it yet. It will be tomorrow, at least, before some senators have their say.

The Senate Finance Committee was expected to vote today on a multibillion-dollar package, but it's still waiting for the final figures. The bill calls for co-ops, not a public option. And if approved, it has to be reconciled with another Senate bill which does include a public option.

OK. Maybe ice cream isn't a healthy food, but what about lettuce or spinach? One consumer watchdog group is listing some of the healthiest foods as the riskiest.

Why? Well, according to the Center for Science in the Public Interest, they cause a lot of food-borne illnesses, mainly through some form of contamination. The top three offenders? Leafy greens, eggs and tuna.

Here's a look at the others -- oysters, potatoes, cheese, ice cream, tomatoes, sprouts and berries. Taking common precautions like keeping things clean and not cross-contaminating go a long way, folks.

(WEATHER REPORT)

(COMMERCIAL BREAK)

PHILLIPS: All right. Your top stories.

Is it OK to make and sell videos of dogfights or other kinds of animal cruelty? The Obama administration wants to bring back a ban. Free speech advocates say no way. The Supreme Court heard arguments today, and the case involves a man sentenced to prison for videos that he made about pit bull fights.

She endured losing her newborn son twice, first to an apparent kidnapper, and then to the Tennessee child welfare people. Today, according to her lawyer, this mom was cleared of claims she tried to sell her baby and will be reunited with her kid. The baby was abducted last week, but found safe in Alabama. A suspect is now in custody.

And don't worry if you haven't gotten a swine flu shot. The H1N1 vaccine is only now starting to arrive in some states. Health care workers in Indiana and Tennessee are among the first to get it. Best to call your doctor first before heading out.

One of L.A.'s newest stars draws crowds of paparazzi, sets the beat and sets hearts aflutter. But you won't find him on the big screen, or even the small. You would find him at the Philharmonic.

CNN's Kara Finnstrom introduces you to "The Dude."

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): In the city of celebrity, 28-year-old Gustavo Dudamel's face is on billboards, on buses. He's even got his own hot dog at the world famous Pinks -- "The Dude Dog." Los Angeles has caught up in Dudamania.

MARK SWED, MUSIC CRITIC, "LOS ANGELES TIMES": He's been a rock star in Venezuela now for a number of years. He has bodyguards, he's mobbed everywhere he goes. And now everywhere he goes in the world he's a huge phenomenon.

FINNSTROM: But in this city, this Venezuelan is an unlikely rock star.

GUSTAVO DUDAMEL, ORCHESTRA CONDUCTOR: I feel like I'm flying.

FINNSTROM: What he's doing is neither hip nor new. It's classical music. Yet, somehow, he is making it revolutionary.

SWED: Nobody's ever seen anything quite like this in classical music.

FINNSTROM: This week, the flamboyant director takes over the Los Angeles Philharmonic Orchestra.

SWED: He inspires the players to get a sound that just hits you. It just hits you the second you hear it.

FINNSTROM: Dudamel, a shot of life at a time when classical music's audience is graying. Expectations of the young star have gotten so great, some are calling him the savior of classical music. Dudamel isn't intimidated.

UNIDENTIFIED MALE: Do you feel overwhelmed sometimes?

DUDAMEL: No. Really, no.

FINNSTROM: So where does that confidence, that crazy talent come from? Some of it is clearly in the young Venezuelan's genes.

DUDAMEL: I started studying music when I was 4 years old in my house.

FINNSTROM: A young prodigy with two musicians for parents.

DUDAMEL: Because I wanted to play the trombone like my father.

FINNSTROM: But Dudamel credits the shaping of his talent to a Venezuelan innovation, a youth orchestra program called El Sistema. It's been teaching music to hundreds of thousands of children, largely from poor neighborhoods.

DUDAMEL: You cannot imagine how it changes the life of a kid when you put an instrument, a violin or a cello or a flute, and he feels that you your work. You know, you have your life there. And this changes your life. It happened to me.

FINNSTROM: Dudamel quickly rose through the ranks to conducting El Sistema's elite Simon Bolivar Youth Orchestra. From there, his pulsing, shaggy locks and pure joy in making music made him an international sensation.

Now he's spreading that joy in Los Angeles.

DUDAMEL: I love to give people passion.

FINNSTROM: He started a youth program in L.A.'s inner city modeled on El Sistema, and he cuts no slack.

DUDAMEL: This looks too slow.

FINNSTROM: He's inviting the city's huge Latino population into what some say has been a stuffy classical click.

ERICK SERRANO, "WELCOME GUSTAVO" COMMITTEE: There's a certain kind of kinship, and then that makes the music more accessible.

FINNSTROM: He's gone viral. And his inaugural concert was free.

The man who says classical music changed him seizing his opportunity to change it.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: And in two weeks, CNN's Soledad O'Brien presents "LATINO IN AMERICA," a two-night look at how Latinos are shaping our communities and culture, and reshaping them. October 21st and 22nd. You can also check out CNN.com/LatinoinAmerica.

Oh, the joys of having a credit card -- a good credit score, pay on time every month, get rewarded with a new minimum payment, one that will have you eating Ramen noodles for life.

Minimum? Yes, right.

(COMMERCIAL BREAK)

PHILLIPS: Hiking your rates, doubling your payments, slapping you with fees. Are your credit cards companies squeezing you for as much cash as possible before Uncle Sam cracks down?

Take a close look at your next bill. You might not believe your eyes.

Jessica Yellin shows you why.

(BEGIN VIDEOTAPE)

CHUCK LANE, CREDIT CARD CUSTOMER: It's an injustice.

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT (voice- over): Chuck and Jeanne Lane are outraged. They have excellent credit, never been late. Still, Chase credit cards jacked up their monthly payment from $370 to $911. So, Chuck Lane called the bank to complain.

(on camera): What did you tell them?

C. LANE: I told them this was the worst economic times in history practically. I work for a small company. We have laid off 30 percent of our work force. I just took a 10 percent pay cut this morning. And this is what you're going to do to us?

YELLIN (voice-over): He says he learned his credit card payments skyrocketed when he checked his online bank account.

C. LANE: And I went to my checking account so I could write down the amount that was coming out. And, lo and behold, it was $911.

YELLIN (on camera): Was that a surprise?

C. LANE: I was shocked. I was stunned. YELLIN (voice-over): Now he feels abused.

(on camera): You thought you had a deal.

C. LANE: I did. I thought I had a really good deal.

YELLIN (voice-over): The card was sold as a low-interest way to pay down big bills. The Lanes have paid off half what have they owe, but still have more than $18,000 to go. They can't afford the new monthly payment, so Chuck Lane called to ask Chase for help. And guess what he was told?

C. LANE: You want me to pay five percent more in interest...

YELLIN: He can go back to his old payment, but only if he agrees to a higher interest rate. Under the new credit card law, the Lanes will have options. But for now, they are stuck.

C. LANE: So, you're putting us into bankruptcy. I mean, I don't see how that helps me.

YELLIN: The Lanes aren't alone. In a statement to CNN, Chase says they doubled the minimum payments for a million cardholders because, "While tens of millions of Chase loans have been paid back in less than 24 months, there have been a small percentage of customers that have not made as much progress. Our desire is to have these balances paid back in a reasonable period of time."

JOE RIDOUT, CONSUMER ACTION: Truly, this is the single-most abusive credit card change in terms that I have ever seen.

YELLIN: The credit card industry insists companies are not trying to skirt the new law.

SCOTT TALBOTT, SENIOR VICE PRESIDENT FOR GOVERNMENT AFFAIRS, FINANCIAL SERVICES ROUNDTABLE: It's their desire to provide the best products to consumers always, every day, to ensure that customers have the credit they need.

YELLIN: Ensuring that Americans have affordable credit, that was one reason banks like Chase got billions in taxpayer bailout money.

(on camera): Do you think they're showing proper respect to what Americans are going through?

JEANNE LANE, CREDIT CARD CUSTOMER: No, they're not. They have no respect for the American people. All they think about is the almighty dollar for themselves.

(END VIDEOTAPE)

YELLIN: Some members of Congress are trying to help. They have introduced a new law that would make the credit card rules go into effect on December 1 instead of February 22. But even if that law passes, it would still give credit card companies another two months to keep raising interest rates and doubling payments, and that's little solace for Chuck and Jeanne Lane.

Jessica Yellin, CNN, Washington.

PHILLIPS: All right, that's frustrating. Even if you're a good consumer with good credit, you could still get punished. You don't want it to happen, I don't want it to happen. Gerri Willis, you don't want it to happen. So, help us out.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: No. $900 a month. That's incredible.

PHILLIPS: That's ridiculous.

WILLIS: Anyway, all right. So, Jessica is saying the landscape has changed, credit card companies reacting to higher levels of chargeoffs -- that's customers who aren't paying their bills by penalizing us who do pay our bills on time. In coming weeks -- you should watch your mailbox for letters from your card issuer with changing terms as the companies try to get in front of that new credit card legislation that will make it impossible for them to change rates on existing balances and require they give more notice of impending rate changes.

Here's some things you can do to beat the credit card companies at their own game. A, number one: make minimum payments on time. Look, even the smallest infraction can be an excuse to have your rate changed, and it will not be pretty.

Do not exceed your credit line. That also can get you penalties. Keep copies of all terms and conditions because you want to be able to re-refer to them. Consider a different card. You can always shop around if you have other cards or other types of accounts with different banks. Ask them if they will offer a special deal to move your balance to their card.

And, of course, changing your credit card habits is critical here. Don't use credit cards for everyday purchases. Try to keep that plastic in your wallet when you go to a restaurant, a bar or the grocery store. That is, keep it out of your wallet. Don't use it in those locations. You have to be careful when you use it. Because let's face it, Kyra, you start putting it out, you get in the habit of putting it out. The debt goes up and up and up, and those interest rates are high.

PHILLIPS: Good tips. Thanks, Gerri.

WILLIS: My pleasure.

PHILLIPS: Are you shivering just thinking of winter? Afraid you won't be able to heat your home? There's some heartwarming news this year. You're getting a break, actually. CNNmoney.com's Poppy Harlow in New York. Poppy, heating costs are actually going to fall? That's a first in a while.

POPPY HARLOW, CNNMONEY.COM: A little relief in this recession. The Energy Department, Kyra, asked this morning with their estimates for the winter heating bill. The average bill, folks, is going to be down about 8 percent from last winter. About $960 on average.

Sounds like a lot, but take a look at what you're saving. If you use natural gas to heat your home, you'll save almost 12 percent this winter. If you use heating oil or electricity, you'll save just around 2 percent. But remember, these are estimates. It all depends on how big your home is, how cold the winter is and also, Kyra, how efficient your heating system is.

But yes, some relive in sight for folks. We saw those record oil prices, and that meant high heating bills. Things are getting a little better this winter.

PHILLIPS: Well, speaking of record numbers, how about last year? Record number of people applied for help to pay their heating bills, so what the outlook for this year?

HARLOW: It's not good. Unemployment is much higher right now. It will be higher this year than it was last winter. What it means is that millions more Americans are going to apply for help to pay their heating bills. We could see another record in terms of the numbers.

Last winter, we saw a record 7.5 million Americans applying for help paying those heating bills that. What we hear from energy assistance officials. Now, that number could hit 9 million Americans. They're already seeing an increase in the number of people applying for that help. That's $5 billion set aside by the federal government to help you.

So, here's what you need to do if you need help. If you think you're not going to be able to afford to heat your home this winter, two things you can do. You can call 1-866-674-6327. You can also e- mail energy@ncat.org. Those are both federal numbers and Web sites. They will refer you, Kyra, to the people in your state that can help you. Generally, when it comes to the income for a family of four, you have to be making less than $35,000 or $40,000 a year to get that assistance.

PHILLIPS: Poppy, thanks.

If knowledge is power, and it is, President Obama set foot today in one of the real power centers in Washington. He toured the National Counterterrorism Center, saluting the workers who sound the alarm when you and I are at risk.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ...In recent months and days. Because of you, and all the organizations you represent, we're making real progress in our core mission: to disrupt, dismantle and defeat al Qaeda and other extremist networks around the world.

We must never lose sight of that goal. That's the principal threat to the American people. That is the threat that led to the creation of this center, and that must be the focus of our efforts to defend the homeland and our allies and defeat extremists abroad. (END VIDEO CLIP)

PHILLIPS: The president singled out the case of the Afghan immigrant in Denver who allegedly plotted to set off bombs in New York.

We have heard this before. North Korea says it might come back to six-party talks about nukes if they can talk one-on-one with Washington. That's the word from Chinese and North Korean media after a cross-border visit by the Chinese premier. Pyongyang quit the talks in April when the U.S. criticized a rocket test. The U.S. also wants a larger crowd for any type of talks.

When it comes to alienating Congress, North Korea has nothing on ACORN. That's the Association for community Organizations for Reform Now. Better known as the grassroots group that topped its own voter registration scandal in a really sleazy way. Remember the hidden- camera stings of ACORN workers advising people they thought were pimps and prostitutes? Well, earlier today, ACORN CEO called the group a victim of its own success.

(BEGIN VIDEO CLIP)

BERTHA LEWIS, CEO, ACORN: In a way, we have aided and abetted our attackers. An internal problem that we have been addressing now for a year, rampant, rampant, constant claims of voter registration fraud because our program was the most successful in the country.

(END VIDEO CLIP)

PHILLIPS: Much of the federal government is either investigating or cutting off funding for ACORN. Several states are investigating it as well.

Go to jail, lose your vote? Not necessarily, state laws vary on voting righting for ex-cons. Did you know this? Two states, Maine and Vermont, let convicted felons vote while still in prison. And that's just the population the NAACP is trying to reach. It's just wrapping up an inmate registration drive in Maine, saying it's not about race, not even about politics really, but about helping prisoners engage with society.

David letterman does it again. Another night of awkward blackmail jokes, another ratings bonanza. How to handle a scandal? Clearly better "Late Show" than never.

(COMMERCIAL BREAK)

PHILLIPS: A who's-who from Congress. They have the president's ear today as the U.S. looks for a new way to win the war in Afghanistan. President Obama meeting with top ranking leaders from the House and Senate.

The Taliban says it's behind the latest deadly attack in Pakistan. Yesterday, a suicide bomber killed five workers inside a U.N. relief agency. The militants accused the United Nations of not working in the interests of Muslims, but they say they won't target Muslim relief agencies.

He's America's top commander in the Middle East, but General David Patraeus is waging a more personal battle of prostate cancer. It was discovered in the early stages. So far, he's had two months of radiation treatment, which his office says has been very successful.

Kudos for -- and mea culpas from David Letterman. He publicly apologized to his wife and staff as he wrestles with the blackmail scandal. For a man who was intensely private about his personal life, he was surprisingly candid. And if the ratings are any sign, the audience liked what they saw. Here's our Alina Cho.

ALINA CHO, CNN CORRSPONDENT: Letterman said he was done talking about it, but last night he said, "It seems like people want to talk about it some more." So, that's exactly what he did, apologizing to his wife, his staff, and above all, making jokes about his favorite target, himself.

(BEGIN VIDEOTAPE)

CHO (voice-over): He's become the butt of the late-night laughs over the past few days.

SETH MEYERS, "SATURDAY NIGHT LIVE": It was reported that the blackmailer Joe Halderman was threatening to reveal embarrassing details of Letterman's personal life. For example, after sex, he would always say, "Stay tuned for Craig Ferguson."

CHO: If you can't beat them, well...

DAVID LETTERMAN, CBS HOST, "LATE SHOW WITH DAVID LETTERMAN": Did your weekend just fly by?

(LAUGHTER)

LETTERMAN: I'll be honest with you, folks, right now I would give anything to be hiking on the Appalachian Trail.

CHO: Fans at Monday night's taping said Letterman handled the situation like a pro.

UNIDENTIFIED MALE: Very into it, very energized. It was a lot of fun and I think people really generally support him.

CHO: It did get serious for a few minutes when Letterman, a very private person, again used his very public forum, speaking directly to his staff, and then his wife, Regina Lasko.

LETTERMAN: She has been horribly hurt by my behavior, and when something happens like that, if you hurt a person, then it's your responsibility, you try to fix it. And at that point, there's only two things that can happen. Either you're going to make some progress and get it fixed or you're going to fall short and perhaps not get it fixed. CHO: Letterman also stressed, those sexual relationships are over.

LETTERMAN: I would just like to set the record straight, no, I'm not having sex with these women. Those episodes are in the past.

CHO: Meanwhile, the 27-year CBS veteran accused of demanding $2 million from Letterman to keep quiet about his sexual past is firing back. Joe Halderman's lawyer says Letterman is a master at manipulation.

UNIDENTIFIED MALE: He wanted to get out ahead of the story, and that's exactly what he did.

(END VIDEOTAPE)

CHO: Halderman has pleaded not guilty to attempted grand larceny. He's been suspended from his job and if convicted, he could face up to 15 years in prison. For his part, David Letterman acknowledged, "Ladies and gentleman, this is only phase one of the scandal. Phase two, next week I go on Oprah and sob."

Alina Cho, CNN, New York.

PHILLIPS: Let's see. How many commandments did they break, allegedly? Bearing false witness, check. Coveting the neighbor's stuff, check. Stealing? Big fat check. Don't know about adultery or idol worship. All this sin allegedly at the expense of churches.

(COMMERCIAL BREAK)

PHILLIPS: Did you know being a victim of domestic violence could prevent you from getting health insurance? I'm serious. It's basically legal for insurance companies in seven states and D.C> to deny coverage to victims.

This outraged a lot of you, and it outraged us as well. Here's some of your tweets.

Leslie writes, "If domestic violence victims fall into oppressive preexisting condition category, then insurance companies fall into the domestic terrorist category."

ErnieBobber says this: "Any of these conditions could befall us at any time. We have a moral obligation to insure all God's children are protected.

MattKey writes: "Even being born could be a preexisting condition. We need protection from the insurance companies.

Petunia writes: "This is awful. Who can get insurance? If you have had a baby, or don't have some six six-figure income, you can forget it, like me."

Keep sending me your thoughts. I want you to be a part of our conversation everyday.

Too bad the churches didn't just tell the devils to go to hell. But if the charges prove true, their tickets are as good as booked anyway. The law is looking for two Maryland men, and cops need your help. Twenty-nine-year-old Michael J. Morris of Waldorf and 54-year-old William T. Perkins of Oxen Hill. They're accused of conning more than 150 churches across the country into taking kiosks that kind of look like ATMs. The pastors thought, "Hey, great idea. Free kiosks. We can expand our ministries, raise money. It's great."

Sounded too good to be true, and it was. The kiosks were not free. Far from it. The churches actually ended up owing for them. While the con men allegedly took millions of dollars from a company that thought it was getting paying customers. In a bad economy where giving and goodwill are really needed, you've got reptiles like that. Can't wait to hear the defense when these two idiots are caught.

Speaking of Ponzi schemes, schemers and total jerks, remember the granddaddy of all Ponzi schemes, Bernie Madoff? Well, get this. Many of the SEC staffers who couldn't find anything wrong in his books are either still on the job or getting rich on Wall Street. Check out what our Allan Chernoff found out.

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ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice-over): The SEC's failure to find the Bernard Madoff fraud is a black eye that just won't heal.

SEN. CHARLES SCHUMER (D), NEW YORK: How the heck did this happen?

UNIDENTIFIED MALE: Massive, complete, total bureaucratic incompetence.

CHERNOFF: Yet while the commission gets skewered, most staffers who investigated Madoff and their supervisors have suffered few consequences. Many are enjoying successful careers.

Richard Walker led the SEC'S New York office when it missed its first good chance to catch Madoff in the early '90s. Today, Walker is general counsel of Deutsche Bank.

Among those cited in the SEC inspector general's report on the failure is one of Walker's former examiners, Demetrios Vasilakis. He now works for a New York hedge fund, Atticus Capital, as chief compliance officer.

The former SEC official who met with the Madoff whistleblower Harry Markopolos but failed to act, Grant Ward, is now senior counsel with MetLife. Markopolos told Congress he was shocked by Ward's financial illiteracy.

HARRY MARKOPOLOS, MADOFF WHISTLEBLOWER: If you pay peanuts, then you shouldn't wonder why you end up with monkeys.

CHERNOFF: And then there is the former SEC investigator who married Bernard Madoff's niece, Eric Swanson, now general counsel of stock trading firm BATS Exchange. SEC Inspector General David Kotz found Swanson's romantic relationship did not affect the investigations, but his actions created "the appearance of a potential conflict of interest," one of many failings the inspector general uncovered.

DAVID KOTZ, SEC INSPECTOR GENERAL: The SEC never conducted a competent and thorough examination or investigation of Madoff for operating a Ponzi scheme.

CHERNOFF: And the SEC director who OKd the closing of a Madoff investigation last year, Mark Schonfeld, is now a partner at law firm Gibson Dunn & Crutcher. Arthur Levitt, chairman of the SEC during some of the failed Madoff investigations, is with the private equity investment firm Carlyle Group.

ARTHUR LEVITT, FORMER SEC CHAIRMAN: It never occurred to me or anyone on my staff that Madoff was anything except a market maker.

CHERNOFF: At least six SEC staffers who were directly involved in examining Madoff's books at his office remain at the commission, including Simona Suh.

SIMONA SUH, SEC: I have no comment.

CHERNOFF: Her supervisor's evaluation, "Simona's ability to understand and analyze the complex issues of the Madoff examination is particularly impressive."

SEN. ROBERT MENENDEZ (D), NEW JERSEY: How many have been fired because of this gross incompetence?

UNIDENTIFIED MALE: Well, I don't believe anybody has been fired.

CHERNOFF (on camera): Aside from Arthur Levitt, former and current SEC regulators declined to comment for this story. Only two high-profile SEC officials resigned after the Madoff scandal: Lori Richards, former head of the Office of Compliance Inspections and Examinations and former SEC Enforcement Chief, Linda Thompson. Ms. Thompson has landed nicely; she's now a partner at law firm Davis, Polk and Wardwell.

Allan Chernoff, CNN, New York.

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PHILLIPS: They got the president's ear and maybe gave them a piece of their mindS. Members of Congress meet at the White House to talk strategy in Afghanistan. We go live to Washington next.

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PHILLIPS: The president and Congress picking each other's brains on Afghanistan this hour, looking for ideas on how to take the momentum back. And speaking of momentum, Defense Secretary Gates tells us that the Taliban has it right now. Let's get straight to senior White House correspondent Ed henry. Ed, you were there in the briefing; I saw you asking questions to Robert Gibbs. Any word on what's going on?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Kyra, what's interesting is this is an opportunity for the president to sort of brief members of Congress on where he is. The president is in the middle of five big, long meetings here at the White House that kicked off in August. He had one last week, you'll remember, in "THE SITUATION ROOM" for three hours. He's got one tomorrow, another one on Friday, another one maybe next week with his national security team.

So, a dense number of meetings, hours and hours behind closed doors, trying to sort through this situation. But what's most interesting is after he gives sort of a rundown of where he is in this process of deciding whether to send more troops, the president is expected to take questions from lawmakers in both parties.

And what's fascinating is this is sort of -- exact flip on what we're seeing on health care reform, where the president's got Democrats mostly on board, Republicans pretty much united against him. In this case, he's got Republicans saying, let's get more troops there as soon as possible, where he's got his fellow Democrats like Nancy Pelosi saying, stop, stop, we don't want to escalate this war any further.

So, you see a lot of Republicans very eager to sort of exploit this political ground here, because the president's got leaders in his own party who are looking at the fact that back in March, just a couple of months into office, the president sent 21,000 more troops to Afghanistan. Now, he's considering whether to send up to 40,000 more. This could be an escalation of the war that his fellow Democrats are not happy about, Kyra.

PHILLIPS: Well, not only Democrats and Republicans, but you're even seeing a different in theories on how to fight this war among his national security advisors, from the U.N. to the Pentagon to there on the ground.

HENRY: Absolutely, I mean you've got his commander on the ground, General Stanley McChrystal, very public, very open about saying that he thinks continuing counterinsurgency on the ground there and adding more troops is the way to go. You've got people like Vice President Biden saying, no, let's potentially scale it back. Not send less troops, but not get so much into the weeds of counter insurgency and just overhead drones and that kind of targeted strikes.

A lot of people, like the general, do not think that is a good idea. Very interesting where this will wind up here.

PHILLIPS: All right. And are you expecting any bombshells, do you think, coming up in the next, say, 24 hours?

HENRY: I don't expect it in the next 48 hours, but by the end of October, we're going to hear a big speech from the president. End of October, early November, saying where he's going. So, look for that.

PHILLIPS: Got it. All right, Ed Henry there, live from the White House. Ed, thanks so much.

Now, you're not going to see anything like this anywhere else, not on this level, not with this level of honesty. Straight ahead, a special edition of "AMANPOUR," featuring an exclusive interview with defense chief Robert Gates and Secretary of State Hillary Clinton. They talk war, they talk peace, they talk terror.

Go ahead and take it away, Christiane.