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Americans Accused of Terror Plot; Fixing the Financial System; Madoff Anniversary: More Than 16,000 Claims Filed

Aired December 11, 2009 - 11:00   ET

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

BETTY NGUYEN, CNN ANCHOR: Hey there, Heidi.

It is Friday, December 11th, and here are the top stories right here in the CNN NEWSROOM.

Pakistan says five young Americans tried to sign up for jihad but were rejected by terrorists. Exclusive details ahead on the investigation.

A year after Bernard Madoff's arrest, will victims of his Ponzi scheme fight each other for his assets?

And with 2009 quickly drawing to a close, we have end-of-year health insurance tips that you just might want to take note of because they could save you some money.

Good morning, everybody. Welcome to the NEWSROOM. I'm Betty Nguyen, in for Tony Harris.

Again, you are in the CNN NEWSROOM.

All right. So we begin with the five Americans arrested in Pakistan for allegedly plotting terrorist attacks. A police report just out says the young men planned to go to Afghanistan to martyr themselves.

Our Arwa Damon is working the story and has exclusive information from Pakistan.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Pakistani authorities released a police report that gives even more details about the circumstances surrounding the five Americans who went missing in the United States and turned up here in Pakistan. According to this report, they made contact with at least two militant groups but were interestingly refused by both.

They were believed to be trying to make their way to Afghanistan and were, in fact, in touch with an individual here believed to be the one who was facilitating that. But authorities not wanting to disclose more details on that specific matter.

We spoke with Pakistan's minister of Interior, asking him why he believed that so many young men were coming to this country to try to wage jihad. REHMAN MALIK, INTERIOR MINISTER OF PAKISTAN: Obviously, they don't normally come only for Pakistan because they have to find a route. Either they go to Afghanistan or they come to Pakistan. But historically speaking, if you see all these flow (ph) of terrorists who were brought in during the war of Soviet Union and Afghanistan, there are all those remnants.

So they had been living or their father had been staying here. Some way or the other, there had been a connection with that war.

DAMON: None of these young men have been charged by the Pakistanis or by U.S. authorities. At this stage, everyone is saying that the investigation is still ongoing.

Arwa Damon, CNN, Islamabad.

(END VIDEOTAPE)

NGUYEN: Let's check the newswire right now.

Also in Pakistan, a U.S. government official says a high-ranking al Qaeda leader has been killed in a drone attack in western Pakistan. The government official did not identify who was killed, except to say that it was not Osama bin Laden. Drone attacks in Pakistan have increased since President Obama took office.

Well, U.S. forces on the move. Joint Chiefs Chairman Mike Mullen says 16,000 troops have received marching orders for Afghanistan since last week, when President Barack Obama announced that he has a new strategy for the war there. Well, Mullen says a battalion of Marines was first to go. They arrive in the war zone next week.

Thousands of tons of construction material, winter gear and other equipment also being sent. The Vermont National Guard is deploying 350 soldiers this morning, and they will undergo a couple months of training in Indiana before heading to the battle zone in Afghanistan.

Well, banks, they are modifying just a tiny fraction of mortgages for troubled homeowners. A Treasury Department report says just four percent have had their mortgages permanently reworked to more affordable terms. The administration is warning banks to get moving or face penalties.

(BEGIN VIDEO CLIP)

HERB ALLISON, ASSISTANT TREASURY SECRETARY: We're going to move to the point where we're disciplining the banks if they don't perform better than they are today.

JACK SHACKETT, BANK OF AMERICA: Our goal is to keep as many customers in their homes as possible. We understand the urgency of all solutions.

(END VIDEO CLIP)

NGUYEN: The Obama administration plans to send financial SWAT teams to banks to help break logjams and move the process along faster.

Well, the House is set to vote today on a sweeping overhaul of the U.S. financial regulatory system. The bill is a response to last year's financial collapse and a direct slap-down for Wall Street.

National political correspondent Jessica Yellin joins us now live from Washington.

All right, Jessica, a couple of key amendments have to be voted on today, ,and one deals with mortgages.

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: That's right, Betty. But let's take a big-picture look at what this bill is first. It's an attempt to rein in some of the financial practices that took the nation to the brink last year, and business interests have been lobbying hard to limit its reach.

Now, you're looking at a live picture of the House floor as they take up those issues. Let's break down some of the key elements.

So, in this legislation, it would create a Consumer Financial Protection Agency. Its mission would be to protect regular folks from the kinds of tricks and traps by credit card companies, banks and mortgage providers that have gotten folks into trouble lately.

The bills would also give the government the power to unwind failing financial companies, companies we now call too big to fail, companies like AIG. So, instead of bailing them out in the future, the government could have the power to help dismantle them. And then, finally, another piece, it would create new ways to regulate high-risk investments that helped lead to the collapse.

Now, in the end, we expect all of this to be a party line vote, with Republicans uniformly voting no, but even some Democrats are divided on aspects of this. And I'll give you a look at some of the big amendments to watch out for today.

One is a measure that would effectively kill the Consumer Financial Protection Agency. Now, that's because opponents say that this agency could limit innovation by credit card companies, banks and the like, and so you and I should be wary of it. And there's also a measure, a separate measure, that would give bankruptcy judges the power to rewrite mortgages.

Betty, that's what you were talking about. So if you go into bankruptcy court, a judge could decide to reduce the amount that you owe on your house, making it more affordable so you can stay put. Right now they don't have that power.

So, opponents say all of this will hamstring business at a time when the economy is already hurting, and that it would put government smack dab in the middle of market transactions. That's what the fight is about. Still, Betty, it's expected to pass in the end, and it has yet to even begin making its way through the Senate. A very different version will be debated there. NGUYEN: Oh, no doubt.

OK. Jessica Yellin joining us live.

Thank you for that.

Well, the Obama administration's pay czar has his hatchet out today, and this time Kenneth Feinberg is targeting 450 midlevel executives at bailout firms. Now, most will have their salaries capped at $500,000 per year, but in October Feinberg slashed salaries for the top 25 execs at firms that got federal bailout money.

And getting money back from Bernie Madoff, well, it's been one year since his arrest and investors, once united, are now divided other his assets. We'll give you the latest on that.

And Rob Marciano is working hard on this Friday, tracking the weather out there. We'll be talking to him.

But first, though, the latest on the markets today. It looks like the Dow is up so far in positive territory, at 44 points. We will give you more of a market check throughout the show.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

NGUYEN: Well, today marks an anniversary that threw a wrench into the holidays for a lot of Wall Street investors. And investor, in fact, Bernard Madoff was arrested one year ago, and Madoff's arrest shocked Wall Street. He was charged with defrauding thousands of investors in a $50 billion-plus Ponzi scheme.

Well, the 71-year-old Madoff was convicted of all 11 charges brought against him, and he is now serving 150 years in a federal prison in North Carolina.

So, most of Madoff's assets have been sold off to satisfy cheated investors. But so far, only a fraction of them have gotten any money back.

CNN senior correspondent Allan Chernoff is following that for us. He joins us now.

All right, Allan. Tell us, how many claims indeed were filed in this?

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: Betty, more than 16,000 claims. A lot of people trying to get some money back here, and the fact is, not all that many of Madoff's victims have gotten money back. That's pitting victim against victim.

(BEGIN VIDEOTAPE) CHERNOFF (voice-over): Bennett Goldworth thought he was set for life when he retired three years ago at age 50. He bought a waterfront condo in Ft. Lauderdale and said good-bye to New York and his job selling real estate.

BENNETT GOLDWORTH, MADOFF VICTIM: I felt like I had everything I wanted in life. It was great.

CHERNOFF: A decade of investing with Bernard Madoff gave Goldworth the financial security to enjoy the good life in Florida, until Madoff's arrest.

GOLDWORTH: Hi, Scott. It's Bennett.

CHERNOFF: Today, Goldworth is back in Manhattan, grateful to be selling homes again. He's grateful also to be among the first to receive a full $500,000 insurance settlement from the Securities Investor Protection Corporation, which insured direct accounts of Madoff.

GOLDWORTH: I'm one of the fortunate ones. I was very happy. I thought -- I really was very pleased.

CHERNOFF: But other Madoff victims, like Judy and Don Rafferty, senior citizens who have had to come out of retirement, have gotten nothing.

JUDY RAFFERTY, DENIED COMPENSATION: I felt as though we were cheated. I felt violated.

CHERNOFF: The Rafferty's for years had withdrawn what they believed were earnings from their Madoff account. The trustee overseeing restitution Ervin Becard (ph) says the Rafferty's withdrew more than they invested and therefore are entitled to nothing.

RAFFERTY: They changed the rules in the middle of the game, which I don't think it fair at all.

GOLDWORTH: The net winners should be at the back of the line. That's all. You know, the first thing that should be addressed is that everyone gets back everything they invested.

RAFFERTY: He got his money back. Why wouldn't he feel comfortable? It's the people who haven't gotten their money back that are not happy.

CHERNOFF: What bonded Bernard Madoff clients, victimization, now divides some them. The Rafferty's feel once again they're victims while other Madoff investors like Bennett Goldworth have received compensation to get back on their feet.

(END VIDEOTAPE)

CHERNOFF: Of those 16,000 claims, the trustee has reviewed more than 11,000. And of that number, only 1,600 have actually been OK'd for compensation. Betty, that's about 14 percent, a pretty low level. NGUYEN: All right. So how much longer before the rest of them, all of them, get some of their money back?

CHERNOFF: Well, some will not get any money back, ever. But in terms of those 1,600 -- and the number will presumably grow, at least a bit -- it could be years because, you have the SIPC, Securities Investor Protection Corporation. They've got some money, but the bulk of the money is expected to come from funds that the trustee is gaining. And he has sold off Madoff assets, but he's also trying to claw back some money from investors, big investors who took out large sums from Madoff.

And so, those lawsuits could certainly take some time.

NGUYEN: Yes, this is far from over. All right, Allan. Thank you so much for that.

So, getting the most out of your health insurance before the rates go up. Gerri Willis is offering her tips.

And caught on camera. A woman nine months pregnant -- you have to check this out -- comes to the rescue of a police officer in trouble.

(COMMERCIAL BREAK)

NGUYEN: Checking top stories right now.

Mug shots have been released of the five Americans arrested in Pakistan. Take a look at them there.

Police say the young men came from the Washington area to martyr themselves. Their alleged plan was to wage jihad in Afghanistan, and we are told that they made contact with Pakistani militants through YouTube.

Well, Secretary of State Hillary Clinton not mincing words about Iran. Clinton was speaking just a short time ago about Iran's interest in Latin America.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: We also are well aware of Iran's interests in promoting itself with a number of other countries, Venezuela and Bolivia, as you mentioned. And we can only say that that is a really bad idea for the countries involved, and we hope that there will be a recognition that this is the major supporter, promoter and exporter of terrorism in the world today.

The Revolutionary Guard of Iran, which is increasing its control over the country because of the elections, which were a stark example of the of abuse of human rights in action, is deeply involved in the economy, as well as the security issues of Iran. And I think that if people want to flirt with Iran, they should take a look at what the consequences might well be for them. And we hope that they will think twice, and we're going to support them if they do. (END VIDEO CLIP)

NGUYEN: Those strong remarks from Clinton coming at a Hispanic outreach event in Washington.

Well, back here in the U.S., we want to get you some estimates of the number of Americans hit by the H1N1 flu virus.

Federal health officials say about one in six Americans -- that's about 50 million people -- have had the illness since the outbreak began last spring. The CDC says almost 10,000 people have died from the virus in the U.S.

So many of us will face higher health insurance costs in 2010, and that means you need to squeeze every bit you can out of your 2009 plan. It's just, what, 20 days left to do all of this.

Your Personal Finance Editor Gerri Willis is here.

All right. Time's a ticking, Gerri. What's your first thing to do on this list as you want to squeeze as much as you can out of what you still have left on your insurance.?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, hi there, Betty.

Yes, chances are your health care insurance this year is a whole lot more generous than your options next year. Check to see if you've hit your deductible and then take advantage of the remaining weeks to get your doctors' appointments in.

Think ahead to what health needs you might have in the future. Maybe you want an extra set of glasses. And while you're at it, at the doctor's, think about asking for an extra refill on medicine or even some samples to take home. No harm in stockpiling your medicine cabinet while it's cheaper.

Max out your flexible spending account. Remember a flexible spending account lets you set aside pretax money to use on health- related expenses. It usually has to be used by the end of the year, otherwise that leftover money disappears, but a lot of employers will give you a grace period so your money might stay in the account until, say, March 15th. Make sure you use that money in the account before it vanishes.

Here are some things you can do with that FSA money. You can buy over-the-counter medicines; massage therapy for medical conditions; first aid kits; sunscreen for over 30 SPF; even dancing sessions, Betty. There are a lot of different things you might not have thought of this money can be used to pay for.

NGUYEN: What?

WILLIS: Yes, in some cases.

NGUYEN: So I can get my groove on, dance a little bit, then go get a massage and it's all covered? Now, that's some insurance.

(LAUGHTER)

WILLIS: Only for some people.

NGUYEN: For certain medical -- yes.

WILLIS: Got to have a doctor's prescription. I know, everybody is asking me about this today. But no, you can't get samba. Forget it. You've got to get a doctor's prescription.

NGUYEN: All right. All right.

WILLIS: A great place to do is wageworks.com to find out what is an eligible expense.

NGUYEN: OK. All right.

And so, for the other things that are still left in there, how do you make sure you get every little thing that you're entitled to?

WILLIS: You know, there's free stuff at a lot of employers. Cigna recently took a sampling of 10 large employers and, on average, only half of employees took advantage of free preventative checkups and low-cost screenings.

Many times you can get free services like high cholesterol screenings, prostate cancer screenings, mammograms. You may also be entitled to one or two free dental cleanings a year through your dental plan. So check your policy and make sure you've taken advantage of everything you can get for free before the new year begins, because you know what? Next year it might not be free.

And, of course, if you have any questions, send them to me at Gerri@CNN.com. We love to hear from you.

NGUYEN: Absolutely. All right, Gerri. As always, we appreciate it.

WILLIS: Thank you, Betty.

NGUYEN: Well, young Latinos in the U.S., they are apparently satisfied with their lives and optimistic about their futures. But they're also conflicted about their national identity. That's according to a new study from the Pew Hispanic Center.

The survey looked at Latinos ages 16 to 25. And two-thirds of them are native-born Americans versus half in 1995.

Now, Latinos make up 18 percent of the overall 16-to-25-year-old population in the U.S. More than half of the young Latinos classify themselves by their country of origin, and 24 percent say they are American. Twenty percent say they're Hispanic or Latino.

Eighty-nine percent say a college degree is important for getting ahead in life. Less than half say they plan to get a college degree. As a group, Latinos are much more likely than other American teens to drop out of school, become pregnant, live in poverty, or join a gang, according to the survey.

Well, a new wrinkle in the health care reform battle. Could the new law being debated in Washington actually give insurers the right to decide how much you pay?

And it's Mexico's focal point in the war on drugs. We are along for the ride with police for one day in Juarez where officers cannot keep up with the killings there.

(COMMERCIAL BREAK)

NGUYEN: Well, investors have a reason to buy stocks today. They're happy to see that Americans are starting to hit the malls and are spending some of their hard-earned cash.

Felicia Taylor is at the New York Stock Exchange with details on this.

Hey there, Felicia.

OK. So what are the latest retail sales numbers?

FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: Well, evidently, Betty, cash registers were ringing. Retail sales were more than double what Wall Street had expected. Americans spent more than $350 billion in November. That's up nearly 1.5 percent from October.

Higher gas prices were a big factor, but people also spent money on cars, electronics, appliances, and at hardware, department and home improvement stores. So these numbers are crucial for a variety of reasons.

First, they include the start of the all-important holiday shopping season. Second, they show that people are shopping again. We need to see that if the economy is going to keep growing -- Betty.

NGUYEN: All right. So of if retail sales keep rising, which is a good thing for the economy as a whole, will stores stop offering all those discounts that we're seeing right now?

TAYLOR: Yes, it's probably too soon for that, which is good.

NGUYEN: OK. Good.

TAYLOR: Consumers still reign. Even though the numbers are rising, they're still pretty low. And analysts say they're going to stay that way for a while because, as you well know, unemployment is just still very high.

Shoppers have learned a lesson or two during this recession as well. If you wait, it will come. A recent survey from America's Research says many people are waiting until the last minute, like me, to do their Christmas... NGUYEN: Me too.

(LAUGHTER)

TAYLOR: Well, you know, it pays to wait these days. So, since we're not going to go out and do our Christmas shopping until a little bit later, they're not going to give up on those bigger discounts. We might even see better discounts as we get closer to Christmas.

NGUYEN: Oh, that's so good. So it pays to be a procrastinator this time of year? I love it.

TAYLOR: A little bit, why not.

NGUYEN: Bring on the sales.

TAYLOR: Absolutely. But for now investors are focused on the more positive retail sales numbers. Macy's shares right now are up 4.5 percent and most retailers with the exception of Abercrombie and Fitch and also -- sorry, Wal-Mart is up too. So they're up pretty much across the board. Saks is up about 4 percent. BJs and Target, they're up about 1 percent. So overall, it's been a pretty good day for the retailers.

However, things are now mixed in terms of the marketplace. The Dow industrial is higher but only about four-fifths of 1 percent. The NASDAQ is down about one-third of a turned around. It's now down about one-third of 1 percent and the S&P is pretty much flat. So, we'll see how the trading session ends. If we end up to the up side, we could have two consecutive weeks of gains, but right now it looks a little mixed so will have to wait and see.

NGUYEN: All right, we will watch and see. The day is still young. Thank you, Felicia.

Now to the fight over health care reform. A report out today says insurers may be able to put annual dollar limits on costly medical care. According to the Associated Press, a loophole in the Senate bill would allow annual coverage limits for people battling illnesses like cancer. The legislation that originally passed the Senate would have banned those limits. But a change to the bill weakened that provision.

The so-called public option had been a major sticking point in the push for health care reform. Liberals said it was essential, but some may be willing to let go of the public option now that a compromise is in the works. Details now from senior congressional correspondent Dana Bash.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CORRESPONDENT (voice-over): House Speaker Nancy Pelosi this summer.

REP. NANCY PELOSI (D) HOUSE SPEAKER: There's no way I can pass a bill in the House of Representatives without a public option. BASH: Yet now that Senate Democrats have a tentative deal to drop a public option, she's softening her stance.

UNIDENTIFIED FEMALE: You have said there is, quote, no way I can pass a bill in the House of Representatives without a public option. Is that still the case?

PELOSI: We in the House believe that the public option was the best way to hold the insurance companies honest, to keep them honest and also to increase competition. If you have a better way, put it on the table. As soon as we see something in writing from the Senate, we'll be able to make a judgment.

BASH: Pelosi opened the door to a health care bill with no public option as long as it meets certain standards, like affordable health coverage and competition for insurance companies. But perhaps more surprising than Pelosi's positive statement, the reaction from some of the most liberal lawmakers in her caucus.

UNIDENTIFIED MALE: We're certainly not closing the door.

UNIDENTIFIED FEMALE: You've open to it?

REP. BARBARA LEE, (D) CALIFORNIA: I am. None of us care about what it's called as long as people have the type of coverage that they deserve.

BASH: These members of the powerful progressive caucus had vowed to block health care without a public option. Now -- you know the reality and the reality is that the votes are such that you're going to have to live without a public option right away?

REP. STEVE COHEN (D) TENNESSEE: That's what it appears to be. While I won't like it, I'm not going to make that make me kill the program and kill the improvements that are in it.

BASH: They especially like the Senate idea of allowing people 55 to 64 to buy into Medicare.

REP. JERROLD NADLER (D) NEW YORK: If we're going to greatly expand Medicare, that is a public option.

BASH: But to be sure, not all liberals will stomach compromise.

REP. KEITH ELLISON (D) MINNESOTA: Look, we need a public option for the purpose of choice, competition and access. That's why we need it.

BASH: Many of the House liberals we talked to said they're in a wait and see mode. They're waiting to see the details of the tentative deal Senate Democrats struck, and that's not going to happen until the Congressional Budget Office finishes its analysis. Still in talking to Democrats, it is very clear that despite their deep philosophical differences on many of the policy issues, they are really eager to get a health care bill to the president soon and the House speaker said that could even happen by year's end. Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

NGUYEN: Let's get a look at the weather today. A lot of people excited about the weekend, but depending on where you live, you may be spending it indoors. Hey, Rob.

(WEATHER REPORT)

NGUYEN: All right, thank you so much, Rob.

When you think of NASA, you think about space, right? Planets, stars, things outside the earth's atmosphere. But actually NASA pays a lot of attention to what is going on right here on earth. Scientists there are using space-based technology to monitor the earth's changing climate. Here's CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): NASA, the same agency that put the shuttle in space and man on the moon also has roughly a dozen satellites in orbit, all on a mission to show how the earth is warming.

THORSTEN MARKUS, NASA SCIENTIST: The Arctic is not a frozen lake. It's very dynamic.

ACOSTA: Thorsten Markus, the head of NASA's cryospheric (ph) sciences branch uses those satellites to keep a close eye on the stunning loss of ice in the Arctic. He's traveled to Greenland to confirm his findings on the ground. If current trends continue, within the next 10 to 20 years, we're going to see what in the Arctic?

MARKUS: We may very well see an ice-free summer in the Arctic.

ACOSTA: This animation demonstrates why it's happening so fast. As the ice melts, all that's left to soak up the sun's rays is the ocean.

MARKUS: The solar radiation is most reflected from the ice where it is absorbed by the ocean.

ACOSTA: And this accelerates the melting of the ice.

MARKUS: Exactly.

ACOSTA: Markus, like many scientists at blames the buildup of greenhouse gases in the atmosphere.

MARKUS: There is no doubt that there is global warming.

ACOSTA: But that doesn't convince skeptics who have seized on the global warming e-mail controversy known as climategate and have now taken aim at NASA. An attorney with the Competitive Enterprise Institute which has received funding from ExxonMobil is threatening to sue NASA if it doesn't turn over its e-mails on global temperature readings.

CHRIS HORNER, AUTHOR, "RED HOT LIES": What I'm asking for is what the taxpayer owns, and frankly, the law doesn't require me to have a reason for it. We want transparency. We want to see how they did what. We want to see why.

ACOSTA: NASA is no stranger to climate controversy. James Hansen, one of NASA's top scientists and a fixture at global warming protests, accused the Bush administration of suppressing climate data. That accusation led to this inspector general report which found NASA PR officials had marginalized and mischaracterized climate change information.

JAMES HANSEN, NASA SCIENTIST: If we push the climate system hard enough, it can maintain a momentum. It can pass tipping points, such that climate change continues out of our control.

ACOSTA: For Thorsten Markus, climate measurements are the earth's vital signs much like our own.

MARKUS: If you go to the doctor and the doctor says cholesterol is high. Your blood pressure is high and you may have a stroke and the doctor suggests well, you know, maybe you should be more careful with what you're eating. Do you change your diet?

(END VIDEOTAPE)

NGUYEN: Checking top stories for you right now, police say the five young Americans detained in Pakistan tried to get into training camps there, terrorist training camps, but they were turned away because they didn't have trusted references. Their alleged plan was to wage jihad in Afghanistan.

Kidnappers in the Phillipines have released at least nine more hostages but they are still holding dozens of others in a tense standoff. Some of the hostage takers are former militiamen demanding murder charges against them be dropped. The charges reportedly stem from a clan feud.

Well, South Carolina's first lady, Jenny Sanford, filed for divorce today. Her husband, Governor Mark Sanford, admitted to an affair last June with a woman in Argentina. Mrs. Sanford says she decided on divorce after, quote, "many unsuccessful efforts at reconciliation."

A woman witnesses a police officer being attacked and then decides that she has to do something. Never mind the fact that she is nine months pregnant. All of it is caught on camera. You have to see this story.

(COMMERCIAL BREAK)

NGUYEN: All right, so you know exercise can lower your risk for certain health problems like stroke and heart disease. Well, in today's fit the nation or fit nation report, chief medical correspondent, Dr. Sanjay Gupta says who benefits the most and how much exercise it really takes.

DR. SANJAY GUPTA, CNN CORRESPONDENT: Well, it all depends on what your goals are certainly when it comes to exercise, but this is a study that's caught a lot of people's attention. What derives the most benefit in terms of reducing risk of stroke? This is what researchers are trying to figure out. They studied over 3,000 people, average age 69, followed them along for 10 years, all from the New York area. What they found was it really seemed to benefit men who did moderate to higher intensity exercise. If you did that, you got about a 63 percent risk reduction in stroke overall over that time period. Women for some reason didn't seem to get the same benefit. Either party, men or women who did light exercise didn't seem to get much benefit in terms of stroke reduction overall.

Again, we're just talking about a very specific thing here, reducing the risk of stroke. There's obviously lots of good reasons to exercise for both men and women at any age. In case you're curious, a lot of people are, when it comes to moderate or high intensity exercise, what they're talking about specifically is things like swimming, jogging, tennis, about 20 to 40 minutes a day and doing it three to five or most days of the week. Again, though, the message should not be that exercise is not beneficial to women at any given age.

As to why this might be, it's really unclear why men get benefit and women don't. If you look at the causes of stroke or the things that can increase your risk, high blood pressure, high cholesterol, but also something known as inflammation. Inflammation can be a big culprit here. One of the theories is that men seem to be able to decrease their inflammation more so than women when they do exercise, so that could possibly reduce their risk of stroke. But, again, a lot more research needing to be done on that.

We're also inviting any of you at home to help us practice what we preach. We're creating something called the fit nation challenge. You go to cnn.com/fitnation. We're going to invite five viewers from around the country to join us for the New York City triathlon, which is a mile swim, 26-mile bike, a 10-k run. If you are chosen, we'll send trainers to your area, help you train, invite you out to New York and do the race with us. Again, helping us practice what we preach. But also giving us a glimpse into your own workout routine, what works, what doesn't and what the country can learn for you. So again, cnn.com/fitnation. It's going to be fun. I'm going to do it myself. Back to you for now.

NGUYEN: All right.

Well, Juarez, Mexico, is ground zero for the war on drugs in a city that has already seen 2,000 murders this year alone. Next, CNN's Michael Ware rides with police as officers try to keep up with the killings.

(COMMERCIAL BREAK)

NGUYEN: All right. Police say they have uncovered the most sophisticated underground border tunnel to date tempting to connect Mexico and the U.S. The entrance is concealed inside a warehouse, inside a bathroom in Tijuana. Got that? Well, the entire bathroom floor drops down like an elevator into a tunnel that is some 900 feet underground. You're taking a look at the video right now. It has an electrical and ventilation system. Police discovered the tunnel before it was finished, so there is no exit point to the U.S.

The battle to supply illicit drugs to the U.S., though, has taken no bigger toll than on the city of Juarez, Mexico. Warring drug cartels kill each other and innocent bystanders daily in this town. CNN's Michael Ware spent 24 hours on the ground there as police responded to one killing after another.

(BEGIN VIDEOTAPE)

MICHAEL WARE, CNN CORRESPONDENT (voice-over): This footage is difficult to watch. These anguished cries impossible to forget. Relatives entering this building seeking the bodies of their loved ones, executed by a Mexican drug cartel. You're witnessing the pain of the Mexican border town of Juarez. the front line in the war on drugs. And this, a crime scene I just had to see for myself.

(on-camera): There's so much violence that occurs here in Juarez, that the world just does not hear about. And now disconcerting to see this fresh paint here on these walls as an old woman makes her home in this building. But just two months ago this literally was a corridor of blood. This building had been a drug rehabilitation center and one of the major cartels suspected that its rivals were recruiting foot soldiers from among the patients. So, they came in this door and down this corridor, moving from room to room to room, executing everyone they found. While they're now trying to build a home, this is where 17 people died in yet another day of Juarez violence. Within two days of this attack, the death toll rose even higher when two survivors died in hospital.

And there is no discrimination to the slaughter. Under these clothes lies a seven-year-old American boy. His father, the target, but the hit men chose not to let the child live. On this day, we're in Juarez to see the horrors for ourselves. It's just before dusk as I approach a fresh crime scene. In Juarez, 1,600 people died from drug-related violence last year. This year, the total's already well over 2,000. And today's total is already at 12. The man in that car was hit by cartel gunmen, riddled with eight bullets. His passenger tried to flee but only made it that far. This was yet another afternoon of killing in Juarez, with a night of murder yet to follow.

It's only 9:00. We're now going and joining this police patrol. Since the killings this afternoon that we saw, there's already been another homicide, bringing today's total to 13. Every night joint patrols like this one between local and Federal police and Mexican soldiers crisscross the city, trying desperately to stem the flow of blood. Things are so bad that earlier in the year, the Mexican president had to call in the military to help protect the city. For a short time, there was a lull in the violence, but it quickly returned. Now, it's worse than it's ever been before.

By now, it's close to 10:00 p.m. and the reports of violence are streaming in over the police radio. The patrol has just received another call on the radio. There's some kind of incident. But those lights there, that's America, the U.S. border. This reminds you just how close this war on drugs is being fought to American soil. But before the night is over, there is even more carnage to come. All of this in our one afternoon and evening visit to this deadly city. This time it's almost too much to bear. It's just after 11:00 and where you see those policemen gathered at that door, there's just been four more slayings, this time, all women.

The early reports are that a gunman walked in that door and executed all of them, one of them a 12-year-old girl, another one 14. And the gut-wrenching irony, all of this done with the American border crossing just here, 18 yards away. There can be no more pertinent reminder of the Mexican blood that's being spilled in this war for the right to supply America's demand for elicit drugs. Michael Ware, CNN, Juarez, Mexico.

(END VIDEOTAPE)

NGUYEN: Here's what we're working on for the next hour. Homeowners on the brink of foreclosure may be getting some new help. We're going to dip into this important hearing on the Hill.

Plus, President Obama wants to create five million green jobs in 10 years, what are they and how can you train for them? Well, Gerri Willis brings you the hands-on details.

And an Olympic swimmer goes the extra lap to stop drowning in this country. Our "What Matters" segment focuses on this hero coming us.

(COMMERCIAL BREAK)

NGUYEN: All right. Here's a story that you absolutely have to sit down and take a look at. In south Texas, a woman who, mind you, is nine months pregnant, suddenly turns into a crime-fighting wonder woman. Yep, Angela Gutierrez stopped her car to help a police officer in trouble. He was trying to break up a street brawl, but three teen suspects had him pinned down, well, the guy on the phone is Gutierrez's husband and despite trying, he just could not keep his wife out of the mix.

(BEGIN VIDEO CLIP)

VOICE OF ANGELA GUTIERREZ, 9 MONTHS PREGNANT: I felt like I had to go help him, and I just told the guy to leave him alone, you know, just leave him alone, he's doing his job. That's it.

(END VIDEO CLIP)

NGUYEN: Three teenage suspects ran off, but were caught just a couple of days later and they are charged with aggravated assault. Wow. So, after a five-year legal battle, two dozen Connecticut firefighters finally get the promotions that they had been denied. It is a case involving issues of race and civil rights that went all the way to the nation's highest court. Ali (ph) Jackson of our affiliate WSSB reports from New Haven, Connecticut.

(BEGIN VIDEOTAPE)

ALI JACKSON, WSSB CORRESPONDENT (voice-over): They walked in single file, 24 New Haven firefighters who were receiving promotional badges for captain and lieutenant. Ricci was the lead plaintiff in a case where 14 firefighters sued New Haven after the city threw out the results of a promotional exam saying not enough minorities did well. The case went all the way to the Supreme Court which rules the rights of those 14 had been violated.

LT. FRANK RICCI, NEW HAVEN FIRE DEPARTMENT: Through persistence and hard work, it proves in America that individuals can make a difference and it was because 20 individuals stood up together.

JACKSON: Ten other firefighters who did not join the lawsuit but who also did well on the exam are being promoted, too, like Lieutenant Tyrone Ewing. We asked him if not being a plaintiff changed anything.

LT. TYRONE EWING, NEW HAVEN FIRE DEPARTMENT: Sort of, kind of. It does. I really don't want to get into it right now. I just want to enjoy the moment that I'm in and enjoy it with my family and friends.

MAYOR JOHN DESTEFANO, NEW HAVEN CONNECTICUT: I think everybody will come through this with some experience, and some of the people will still feel things are not fair. But today was a good day for New Haven, so let's have today.

(END VIDEO CLIP)

NGUYEN: OK. So you may remember the New Haven case played a role in the confirmation hearings for Supreme Court Justice Sonia Sotomayor. She ruled against the white firefighters while serving on a federal appeals court.