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American Morning
Grilling Goldman Sachs; Goldman CEO Gives His Take on Senate Hearing; Containment by Fire: Coast Guard May Try Burning Oil Slick; Interview with 2010 Teacher of the Year; Airline Fines for Ground Delays; "Spoken from the Heart"; Russian Adoption Suit; Goldman CEO on Main Street Anger; Barely Air; Flight Diverted
Aired April 28, 2010 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: Good morning, and thanks so much for being with us on this Wednesday. It's the 28th of April. I'm John Roberts.
KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry. Glad you're with us. We have a lot of big stories we'll be telling you about in the next 15 minutes.
First, it got pretty ugly yesterday. In a rare show of unity on Capitol Hill, both sides taking shots at Goldman Sachs executives who insisted they did nothing wrong in the economic meltdown and nothing to ruin so many lives.
ROBERTS: After the hearing, our Christine Romans got more out of Goldman's top God and most of our elected officials did.
(BEGIN VIDEO CLIP)
LLOYD BLANKFEIN, GOLDMAN SACHS CEO: We have -- I have -- the firm has its work cut out for it.
(END VIDEO CLIP)
ROBERTS: We will have more of that CNN exclusive interview just ahead.
CHETRY: And an oil slick 40 miles wide is now closing in on the Louisiana coast. Birds, oyster beds, beaches all threatened. Thousands of gallons of crude still pouring into the gulf where an oil rig exploded and sank last week. Now, the Coast Guard may have no other choice but to fight this environmental disaster with fire.
And the amFIX blog is up and running this morning. We'd love for you to join the conversation, anything you want to talk about that's going on in the news today. Go to CNN.com/amFIX.
But first this Wednesday morning, deny, deny, deny. In front of millions of Americans who already think they are so smug, Goldman Sachs executives did little to help their cause on Capitol Hill. Senators spent seven hours piling on, accusing them of essentially bundling up garbage loans tied to the housing crisis and telling investors they're awesome. That was the trigger that caused the financial meltdown and lawmakers really got nowhere but they did get their shots in.
(BEGIN VIDEO CLIP)
SEN. CARL LEVIN (D-MI), CHIARMAN, SUBCOMMITTEE ON INVESTIGATIONS: June 22 is the date of this e-mail. Boy, that Timber Wolf was one (expletive deleted) deal. How much of that (expletive deleted) deal did you sell to your clients after June 22, 2007?
UNIDENTIFIED MALE: Mr. Chairman, I don't know the answer to that. But the price would have reflected levels that they wanted to invest at that time.
LEVIN: Oh, but they don't know -- you didn't tell them you thought it was a (expletive deleted) deal?
UNIDENTIFIED MALE: I didn't say that.
LEVIN: No. Who did? Your people, internally. You knew it was a (expletive deleted) deal and that's what your e-mail shows.
(END VIDEO CLIP)
ROBERTS: So how did trader Fabrice Tourre fare? You may know him better as the "Fabulous Fab," the name that he gave himself in a now infamous e-mail the SEC cited in the fraud charge against Goldman Sachs.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: How did it make you feel when they were released publicly?
FABRICE TOURRE, VICE PRESIDENT, GOLDMAN SACHS: As I will -- you know, repeat again, Dr. Coburn. I regret, you know, the e-mails. They reflect very bad on the firm and on myself. And you know, I think, you know, with -- I wish, you know, I hadn't sent those.
(END VIDEO CLIP)
ROBERTS: Our Christine Romans watched the whole thing unfold yesterday. She's live in Washington for us this morning.
CHETRY: Yes, and she got a chance to sit down with Goldman Sachs' top guy, CEO Lloyd Blankfein, after the hearing. Fascinating stuff and as you said it went on for hours.
Hi, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Ten and a half hours, you guys. Ten and a half hours of blistering testimony. The first panel alone which was the mortgage debts was just about five hours of testimony. And I will say that Senator Carl Levin was relentless. I mean, by 8:00 last night, it was as if this man was a prosecutor doing his closing arguments as he went after Lloyd Blankfein about what he says was double dealing and a culture of misconduct on Wall Street personified by Goldman Sachs. Now, privately there are reports that Lloyd Blankfein has told some clients that, in fact, this is some kind of a political attack. After the hearing, I asked him if Goldman has been singled out and if this is about somehow about politics. This is what he said.
(BEGIN VIDEO CLIP)
ROMANS: Do you think that there's a political attack against Goldman Sachs?
LLOYD BLANKFEIN, CEO, GOLDMAN SACHS: No. I think at most I can say there is a disproportionate focus on Goldman Sachs. But I would say that there has been a huge trauma to this country related to the economic collapse and financial institutions played a bill role in that. And we share some of that burden. So it's not unfair and in fact, it's necessary to do the kind of investigation that will yield regulation, hopefully bipartisan regulation, that will re-regulate the market in a sensible way.
(END VIDEO CLIP)
ROMANS: "It's not unfair, it's necessary," he said. But at the same time at that hearing, I want to be very clear, no one from Goldman Sachs admitted any kind of wrongdoing and no one from Goldman Sachs would necessarily take responsibility for engineering products that may have been at the heart of the financial crisis. So on the one hand, you're seeing some contrition from him that we bear a part of the burden for, you know, the environment that led up to this collapse. But they are not admitting to any double dealing. They are not admitting to betting against their clients and they certainly aren't admitting to any of the charges in that SEC case against them.
CHETRY: All right. Christine Romans for us this morning. A lot to get to as this saga continues. And wow, as you said, relentless testimony, relentless questioning yesterday. Thanks, Christine.
Well, despite all of the rage at Wall Street, Congress can't even get a debate going on new rules for the financial industry. President Obama blasting Republicans for blocking two attempts by Senate Democrats to move forward on financial overhaul legislation. He'll try again today to bring the bill to the floor of the Senate. The Americans -- the president saying that Americans deserve an honest debate on financial reform.
And coming up in an hour and a half, we're going to be speaking with Democratic Senator Chris Dodd of Connecticut who says the GOP is taking a major political risk by blocking financial reform.
ROBERTS: New details this morning about what happened on board a Delta Airlines flight from Paris to Atlanta after a man made what's being described as two alarming statements. The plane was diverted to Maine yesterday out of an abundance of caution, according to officials. They say that Derek Stansberry who served in the U.S. Air Force as an intelligence specialist claimed to have explosives and a false passport. He was detained by federal air marshals. No explosives were found and passengers say the crew was calm and professional.
(BEGIN VIDEO CLIP)
CHARDE HOUSTON, ON DIVERTED DELTA FLIGHT: I just felt like something, you know, was a little strange. You can just see on the flight attendant's face that, you know, they were a little bothered by something.
Nervous? Yes, of course, especially when, you know, the pilot comes on and tells you that the plane has to divert. So that's definitely something to wonder about. But ultimately, I thought they handled it very, very good.
(END VIDEO CLIP)
ROBERTS: Stansberry, who served in both Iraq and Afghanistan, has been questioned. So far, no charges have been filed.
CHETRY: Well, this next video is something that you have to see because Bango, who is the Milwaukee Bucks mascot, is about to attempt a dunk that's never been done before. There you see him. He's at the very top of the ladder. He leaps off backwards and makes the shot. The crowd goes wild. The Atlanta Hawks must have feared the deer Monday night because the Bucks actually beat the Hawks in game four. And there you see it again, doing a flip, dunk, it goes in and landing.
Now apparently when he tried that just a year ago, he tore his ACL. Went back again for his victory lap and made the shot. That's unbelievable.
ROBERTS: Did he land on the floor? Does he got a cushion on him?
CHETRY: I don't know. I didn't see the bottom. There has to be some padding.
ROBERTS: A padding.
CHETRY: Yes.
ROBERTS: A little padding.
Didn't tear his ACL this time. Good for you.
Let's get a quick check of this morning's weather headlines. Rob Marciano in the weather center in Atlanta. How are we looking today, Rob?
ROB MARCIANO, AMS METEOROLOGIST: You know, chilly across much of the eastern third of the country. Good morning, guys. If you're heading out the door feeling, well, more like maybe March, even late February in some spots, take a look at some of these current temperatures.
In the 30s in upstate New York, 40 degrees in New York City so not a whole lot of heat going on there. And even 35 in Boston. The freezing mark in Pittsburgh. So we have frost and freeze -- the eastern, northeastern third of the country. Syracuse to Albany, and then north into upstate New York, it continues to come down as far as snow is concerned and some of the spots in Vermont are reporting 12, 13 inches. Can you believe that?
Winter storm warnings still posted and will be breezy and chilly not only for the northeast but all the way to the mid-Atlantic. And this powerful storm coming into the northwest will emerge into the northern plains later on today. Mountain snow, of course, but a lot of wind. We had winds gusting over 100 miles an hour in spots in California and Nevada yesterday. And some of that wind will be emerging in the plains but it will bring in some warm temperatures. Dallas in the lower 80s, 70 in Atlanta and 58 degrees in New York City.
A foot of snow in Vermont, guys. So if you still have a hankering for winter and still got that itch, drive north about four hours from New York City.
ROBERTS: I think I'd rather head south. Thanks, Rob.
MARCIANO: See you guys.
CHETRY: Still to come on the Most News in the Morning, the Coast Guard is now proposing a possible solution to take care of the oil spill on the gulf. It's a risky one, though, to set it on fire. We're going to get a live report on what's going on with this oil spill still ahead.
(COMMERCIAL BREAK)
CHETRY: Welcome back. Eleven minutes past the hour.
That oil slick we've been talking about off the gulf coast is now more than 40 miles wide and just 20 miles from shore this morning. The best way to fight it, some of the experts are saying may be with fire.
ROBERTS: Yes, set it on fire. At the site of last week's platform explosion, more than 40,000 gallons of crude are still leaking into the ocean each and every day and time is running out to avoid an environmental catastrophe. Our Reynolds Wolf is live in Venice, Louisiana, this morning down there on the Mississippi Delta. What are you hearing from the Coast Guard about the possibility of a controlled burn out there in the middle of the gulf, Reynolds?
REYNOLDS WOLF, AMS METEOROLOGIST: I'm here. And we are certainly hearing the same thing. But the thing to remember is that it would not be like going to the gulf and simply throwing a match in the middle of the oil slick. It would be just one small portion at a time and even then, it would only have to be if you have conditions that are absolutely perfect. You have to have the winds and the currents that would be just so.
Speaking to the Coast Guard, yesterday I had a chance to take off with the Coast Guard helicopter crew out in New Orleans and we got to fly out to assess the damage. And let me tell you, containing this thing is going to be a very tall order.
(BEGIN VIDEOTAPE)
WOLF (voice-over): From the air, the spill appears massive.
UNIDENTIFIED MALE: You can definitely see it.
VOICE OF: LT. CRAIG MURRAY, U.S. COAST GUARD: Those are skimmers and booms trying to recover oil.
UNIDENTIFIED MALE: (INAUDIBLE) there's plenty to see. There's a little bit. There's a little bit of a rainbow-like sheen. And most of that is going to be burned away by the sun's rays but there's also a thicker layer of crude oil in places. You know, that's going to have to be (INAUDIBLE) away.
WOLF: NOAA scientist Ed Levine says the oil moves with sea currents and winds, both affecting the slick shape and size.
UNIDENTIFIED MALE: Probably about 97 percent of the floating oil on the surface is very thin sheen. Sheens, molecules thin, thinner than a coat of paint on the side of your house. The area where the thick oil is in about that three percent of the surface.
WOLF: Currently the slick is about 40 miles by 30 miles. And scientists estimate the well is leaking some 42,000 gallons of oil each day. Failure to contain could be catastrophic to the people, beaches and businesses along the gulf coast.
ED LEVINE, NOAA: The thing we're trying to minimize is land impacts because of the environmental and socio-economic damage that it can do. One of NOAA's concerns is also guaranteeing the safety and security of the seafood, that no tainted products get to market.
UNIDENTIFIED MALE: The previous location of the sea port arise at 11:00.
WOLF: And it's going to take a huge effort as we fly over the location where the deepwater horizon was once operational. All that remains is a blanket of oil and boats.
UNIDENTIFIED MALE: (INAUDIBLE) sea each day increase.
WOLF: Working to stop the leak and what Coast Guard officials say might become one of the most significant oil spills in U.S. history.
(END VIDEOTAPE)
WOLF: And guys, we have an update for you in terms of the size of this. And since we filed that report, it is now measured to be roughly 42 miles by 80 miles. Certainly a tremendous mess. The spill that is so big that winds are carrying the smell of this along parts of the coast, especially in parts of Florida, Alabama and Mississippi. People actually can smell it from the beaches.
Back to you.
CHETRY: Tough situation there for sure. We'll continue following it. Thanks so much.
And meanwhile, to another situation that's unfolding right now in the streets just outside of Bangkok, Thailand. The area has turned into a battleground this morning, as police fire on thousands of anti- government protesters. The crowd trying to bring down the government they say is illegitimate and undemocratic. Accusations the prime minister is calling unfounded. Since the protest started more than a month ago, two dozen civilians and military personnel have died in the clashes.
ROBERTS: Coming up next on the Most News in the Morning, new rules set to go into effect about how long airlines can make you sit and wait on the tarmac before you take off. We're "Minding Your Business" this morning.
Fifteen minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Eighteen minutes after the hour. Time for "Minding Your Business" this Wednesday morning.
Hackers are targeting iPad users. A software security firm is telling iPad owners to watch out for an e-mail telling them to download the latest version of iTunes for best performance, newer features and security.
Security experts say if an iPad user installs that software, hackers will then have access to their iPad and can steal the passwords for all their e-mail accounts. So be careful with that.
CHETRY: That didn't take long, did it?
Well, the starting -- starting tomorrow, airlines are going to be facing stiff penalties for keeping passengers grounded on planes for more than three hours on the tarmac. The Obama administration is promising strict enforcement of this new Transportation Department rule, and it calls for fines of up to $27,000 per passenger against an offending airline.
(BEGIN VIDEO CLIP)
KATE HANNI, PASSENGER RIGHTS ADVOCATE: Airline passengers have less rights than a prisoner of war for the Geneva Convention, and to think otherwise is defying what we've seen over and over again.
(END VIDEO CLIP)
CHETRY: The airline industry says it will comply with the rule but also warns carriers wouldn't want to risk massive fines and that could mean more cancellations, more (INAUDIBLE) lost bags and more headaches in general for travelers.
ROBERTS: We're checking other stories new this morning.
Tests show that former Poison frontman Bret Michaels has suffered a setback while recovering from a brain hemorrhage. A statement on the singer's official Web site says the bleeding in his brain has caused lack of sodium for his body, and that could lead to seizures.
The statement also says he remains in critical but stable condition and doctors remain hopeful for a full recovery.
CHETRY: Former First Lady Laura Bush is opening up about a car accident that she had nearly 50 years ago that claimed the life of a high school friend that has haunted her ever since. Mrs. Bush's new book "Spoken from the Heart" hits bookstores next month.
According to "The New York Times," she goes into detail about the deadly night back in 1963 and also takes Democratic leaders Nancy Pelosi and Harry Reid to task, calling them graceless for the names that they called her husband.
And she also details this interesting -- she said the she believes that there may have been -- the entire delegation may have been poisoned at the G-8 Summit in Germany. She says they all became mysteriously sick and that President Bush was actually bedridden, but they could never determine whether they were poisoned or not.
ROBERTS: You know, there were some speculation about that back then, but, you know, maybe it was just bad schnitzel. They just needed (INAUDIBLE).
CHETRY: Maybe.
ROBERTS: And "The Thomas Crown Affair" this is not. A 70-year-old art dealer in Los Angeles was caught by the feds trying to sell a fake Picasso as the real deal.
Tatiana Khan is accused of paying an art restorer $1,000 to make a knock-off of the master's 1902 drawing, "The Woman in the Blue Hat" and then selling it for $2 million. She has agreed to plead guilty. Khan faces up to 25 years in prison, but officials are only asking for 21 months.
The giveaway was they -- they looked underneath and they found that painting of dogs with cards. Just kidding.
CHETRY: Yes. Dogs playing poker.
Well, next on the Most News in the Morning, the story of one family who adopted a little boy from Russia and got much more than they bargained for.
Alina Cho with an "A.M. Original" next.
(COMMERCIAL BREAK)
ROBERTS: Well, Russian adoptions are firmly in the spotlight right now after the recent story of a woman in Tennessee who put her adopted son on a plane by himself to Russia, saying that he was just too much to handle.
CHETRY: Well, this morning, there was an equally controversial as well as heart-wrenching case that's grabbing national attention.
Our Alina Cho went to Virginia for our "A.M. Original", speaking with an adoptive family who says that a Russian orphanage misled them. Hey, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey, there. Good morning.
And it's because of that Tennessee case that this couple is speaking out, guys. You know, when Chip and Julie Harlow (ph) from Virginia adopted their son, Roman, from Russia, he was just shy of 2 years old. He was blond, green-eyed, seemingly healthy, or at least the Harshaws say that's what they were told by the adoption agency that handled the case.
Well, it turns out Roman is severely ill, even violent. They don't want to send Roman back to Russia, but they are suing the adoption agency, saying they were lied to and deceived.
(BEGIN VIDEOTAPE)
CHO (voice-over): The Harshaw home in Virginia is a little quieter these days. Roman, now 8, was sent away to an institution a little more than two weeks ago where he's getting help for his violent behavior.
JULIE HARSHAW, SUING ADOPTION AGENCY: I felt like the worst mom in the world and how could I let my baby go there and go to sleep every night without us and without us tucking him in? And, you know, it was really hard, and it still is.
CHO: The Harshaws adopted Roman from Russia six years ago. He arrived looking picture perfect, but, soon after, Roman began acting out.
CHIP HARSHAW, SUING ADOPTION AGENCY: He can be hugging you and telling you I love you one second, and then the next second he is completely lost it in a rage.
CHO: The Harshaws say Roman once tried to smash a two by four over their daughter Grace's head. Another time, he almost drowned her in the pool.
Older brother Daniel is so distraught, he asked his parents for counseling.
J. HARSHAW: To hear your 11-year-old say he needs a psychiatrist because of the stress that's in your house is really hard to hear.
CHO: Roman is also a danger to himself, most recently pulling out three of his own teeth.
The diagnosis from several doctors, fetal alcohol syndrome.
C. HARSHAW: That's irreversible, uncorrectable and it's lifelong thing, and it is taking a huge toll on us. CHO: In a lawsuit filed against adoption agency Bethany Christian Services, the Harshaws alleged they were lied to about Roman's health and need financial help to care for his special needs. They say Bethany misled them, telling them a Russian doctor based in New York traveled to the orphanage for a face to face visit.
CHO (on camera): You were assured that Dr. D. went to Russia, went to Roman's orphanage and examined Roman?
J. HARSHAW: Correct.
CHO: What were you told about him?
J. HARSHAW: That -- exactly what they said, that he was healthy and on target.
CHO (voice-over): But in a deposition, Dr. D., Dr. Michael Dubrovsky, admitted he never went to the orphanage and doesn't even practice medicine in the U.S.
In court documents, an employee of the adoption agency acknowledged she had told the family Dr. Dubrovsky would visit the children in Russia and review their medical records.
CHO (on camera): Had you known what you now know, you would not have gone through with this adoption, and yet, you --
J. HARSHAW: We love our son (ph).
C. HARSHAW: Yes, so what do you do? So what --
We are -- we are in the worst possible situation, but the bottom line is that we love Roman. He's not a broken toy that you can return to the store.
ROMAN HARSHAW, ADOPTED FROM RUSSIA: Alligator!
C. HARSHAW: Yes.
CHO (voice-over): So Roman is getting help at this inpatient facility about 90 minutes away from home. Bethany Christian Services disputes most of the Harshaws' claims and says it provided counseling, extensive documentation, opportunities to consult with physicians and medical records to the family.
Adoption specialist Jane Aronson says fetal alcohol syndrome is common in Russian orphans and the Harshaws should have known the risks before they brought Roman home.
DR. JANE ARONSON, INTERNATIONAL ADOPTION SPECIALIST: Every country is well known for what the challenges are and the style of care for children.
CHO (on camera): So you're saying you should know a lot. If you don't, do your homework?
ARONSON: Exactly. I think everyone needs to do their homework.
CHO (voice-over): The Harshaws say they're not giving up, on the case or on their son.
CHO (on camera): What's your great hope for Roman?
J. HARSHAW: That we can find a place that he will be as happy as he can be and safe as he can be. We don't know what the future holds, but we want him to be a part of our family, no matter what.
(END VIDEOTAPE)
CHO: The adoption agency, Bethany Christian Services, is seeking a gag order, barring the Harshaws from talking to the media. CNN plans to fight that gag order. Guys, a judge is expected to make a ruling on that today.
But, you know, Chip Harshaw, the father, says, you know, if -- if fetal alcohol syndrome is so prevalent, why weren't we told about that?
Now adoption specialists will counter and they'll say, listen, when you -- when you photograph a child, when you videotape a child overseas and -- and the prospective parents see that, the child looks OK. In her words, they don't look like they're dying.
But those underlying medical conditions, they really need to be examined further, and so she wonders, why didn't they talk to an adoption specialist? Why didn't they have them review the papers that they were given? Perhaps they would have avoided this type os situation.
She also praises them for deciding to keep Roman and -- and nurture him and love him, and the Harshaws say, listen, we are filing this lawsuit because we need money to care for him, potentially for the rest of his life.
ROBERTS: Sure. (INAUDIBLE). What a tough situation.
CHO: It is a tough situation.
CHETRY: It also makes you wonder what would happen if it was disclosed. I mean, you know, people knew that he was suffering from fetal alcohol syndrome, which has a whole host of other behavioral and also intellectual problems.
But what would happen to him? Would he have just stayed in the orphanage for the rest of his life? (INAUDIBLE) institutionalized at Russia?
CHO: That's an open question. I mean, listen, fetal alcohol syndrome, by some estimates, in Russia is eight times more prevalent than in any other place in the world. And so, it is a major problem there.
And when you talk to adoption specialists, they say when you hear about a case like this, really, the message is prevention. Let's get money, grants to these types of countries around the world so that we can fight this so it doesn't happen.
That's a long battle.
CHETRY: It absolutely is.
Thanks, Alina.
CHO: You bet.
CHETRY: Thirty minutes past the hour right now, time to look at our top stories this morning.
Fighting an oil slick with fire -- could be the only option left for the Coast Guard. More than 40,000 gallons of crude is still spilling into the Gulf of Mexico each day. And the slick from last week's oil rig explosion is now 40 miles wide and within 20 miles of Louisiana' shore, threatening birds, oyster beds, beaches. Officials are considering a controlled burn to try to minimize the damage to the environment.
ROBERTS: The Justice Department may sue the state of Arizona over a new law that allows police to check the status of those, they believe, are in the country illegally. Attorney General Eric Holder says the bill could pit law enforcement against those that they are supposed to protect.
Meantime, Homeland Security Secretary Janet Napolitano says the southern border is as secure as it has ever been, and warns against redirecting federal dollars to use to hunt down dangerous immigrants.
CHETRY: And a reflection of Main Street's anger coming out on Capitol Hill -- senators slamming Goldman Sachs for their alleged role in the worst recession since the Great Depression. The traders deny that they knew the housing market was crashing and made billions off that knowledge.
ROBERTS: Well, maybe the most powerful man on Wall Street right now, Goldman CEO Lloyd Blankfein, said the firm is doing some soul-searching at the moment, but he also denied betting against his clients and said his firm is not appreciated for the good it does.
CHETRY: Christine Romans had a chance to catch up with him after the hearing on Capitol Hill. She joins us live in Washington for us this morning with more.
What struck you the most about what Lloyd Blankfein told you yesterday?
ROMANS: What struck me the most is how is it that Goldman Sachs became sort of this symbol of everything that went wrong in the bubble? Because two years ago -- two years ago, people on Wall Street were lobbying this company, maybe a year and a half ago, saying, well, these guys are the smartest people out there. They see -- they see what is weakening elsewhere and they're willing to -- you know, they're willing to make sure they're not going to get too exposed to the mortgage mess.
But now, that's coming back to bite them. And I asked Lloyd Blankfein, you know, here is this Wall Street CEO, a multimillionaire -- a multi multimillionaire, who -- Harvard educated, but the interesting here is that he has been set up as sort of the man that Main Street hates. And there's an irony in that.
Listen.
(BEGIN VIDEOTAPE)
ROMANS: Can I ask you how you became the poster boy for Main Street versus Wall Street? You're a guy who grew up -- working class parents, working class family. Your dad was a postal worker. And now, you're the guy who's the face of the enemy of Main Street.
How did that happen?
LLOYD BLANKFEIN, GOLDMAN SACHS CEO: I know in some quarters, maybe that's a fair characterization. But I hope it's not like that broadly, and I hope it doesn't stay that way. I don't know that how it's happened.
ROMANS: I mean, there are people with signs that say America's, you know, public enemy number one, Lloyd Blankfein. I mean, you -- that must pain you.
BLANKFEIN: Well, if I've seen that, it would have -- it would pain me. It pains me to hear you say it. We have -- I have -- the firm has its work cut off for it. However we got to this place, we are going to work very, very hard to make ourselves appreciated for the value we contribute and for the way in which our activities are good for America. I know there is credibility gap there, but I tell you the activities that we do, financing companies and helping to manage people's money -- these are all good for the United States.
ROMANS: But what about trading and what about CDOs?
BLANKFEIN: Trading --
ROMANS: Was that nothing? Was that air?
BLANKFEIN: No, of course, it's good. People could only be able to raise capital if the people who buy those equities and buy those bonds are able to sell them. And they can only sell them if they are liquid markets. They're all connected to the capital markets.
Nobody, even the legislators, they are not questioning the importance of the capital markets and the work we do when we're doing well. Their criticism is that we haven't done a good job or we haven't -- we haven't taken account of all of the interest in the way we should have. And we're committed to re-earning that trust.
(END VIDEOTAPE)
ROMANS: So, it's not an attack on the capital markets, and he's right -- he's right on that. I mean, the allegations are double- dealing. The allegations are the deck is stacked no matter what, and that -- and that it's not those fundamental ways of creating the economy that Goldman Sachs was pursuing, but it was trading and financial engineering that actually hurt the economy. That's what -- that's what we kept dancing around yesterday in this hearing -- lots of e-mails, lots of accusations, denials from Goldman Sachs.
But bottom line, this is a company -- I think -- and I think Lloyd Blankfein in this interview was a little more contrite than he was in the hearing for sure. They say that they have work to do, but they will not acknowledge that they did anything wrong.
ROBERTS: Real point of confrontation yesterday in that subcommittee hearing between the chairman, Carl Levin, and Blankfein. When all is said and done, who won?
ROMANS: It was a fascinating confrontation. I mean, it was the Wall Street pit bull versus the, you know, the Senate prosecutor. It was just fascinating. In the end, I think, it's draw.
But you know what they thought on Wall Street, they thought that Blankfein won. Stock market was down 200 points yesterday, John and Kiran, and Goldman Sachs stock ended a dollar higher.
CHETRY: Yes. I thought about you when I saw that one. You'd be going crazy over that, because it was, you know, as you said, 10- and-a-half hours of basically, you know, being -- having the screws put to them and the stock didn't suffer.
ROMANS: Yes.
CHETRY: Amazing.
ROMANS: And I'll tell you, it's because mostly people said, there weren't -- aside from some Timberwolf e-mails which we're going to get into later, but aside from some little -- some e-mails here and there, they didn't see a big smoking gun, a new smoking gun. This is a lot of the same allegations and the same denials that they've heard so far. And that's why -- that's why the stock ended up.
CHETRY: All right. Well, we'll talk a little bit later about Fab Tourre as well.
ROMANS: OK.
CHETRY: Fabulous Fab with you as well. He testified.
ROMANS: Sure.
CHETRY: Still coming up on the Most News in the Morning, she's about to be named Teacher of the Year. We're going to be talking to Sarah Brown Wessling about what she thinks about being given this honor.
Thirty-six minutes past the hour.
(COMMERCIAL BREAK)
ROBERTS: Too often, headlines about schools in America involve budget cuts, kids dropping out, or teachers just not doing their jobs. But there are educators out there, lots of them in fact, doing an amazing job teaching your children.
CHETRY: That's right. And Sarah Brown Wessling is one of them. She teaches high school English in Johnston, Iowa. And tomorrow, President Obama will name her National Teacher of the Year.
And we're thrilled to have Sarah Brown Wessling join us this morning to talk more about the honor from the D.C. bureau.
Welcome and congratulations.
SARAH BROWN WESSLING, 2010 NATIONAL TEACHER OF THE YEAR: Thank you so much. It's a pleasure to be here.
CHETRY: Well, we're glad to get a chance to talk to you this morning. Tell us what it was like when you found out that you were, indeed, being named Teacher of the Year?
WESSLING: It was both euphoric and humbling. This is an incredible opportunity to represent all of magnificent teachers in this country, and for me to learn and grow and model what I most hope for my own students, that they are lifelong learners and they take on new challenges.
ROBERTS: So, you know, one of your students at Johnston High wrote this of you. And, obviously, it was a student from a little while ago.
Quote, "Over the course of sophomore English" -- it was the course -- "she took an underachieving student that struggled through remedial reading in second grade and transformed him into someone with the confidence to go to college and now graduate school. I think that is a remarkable achievement for any educator."
So, share with us this morning, if you would, Sarah, what are the methods that you use to create high-performing students out of students who might not be performing so well? And how can those be applied across the board?
WESSLING: Well, I think, first of all, what's so important for us to realize as educators is that we need to see every single student as an individual with infinite potential. And when we do that, students like John, the student who wrote that, has the ability to exceed even his own expectations. I think one of the ways we can do that in the classroom is by giving students what they really want, which is to be challenged.
I really do think they want to be challenged in ways that are rigorous for them but also relevant to them. And in that sense, we need to make sure our instruction is 21st century. We need to make sure that we're connecting with students right where they are. And when we do those kinds of things and we are careful in our instructional design, I think we can create the kind of curriculum that is personal and relevant to every single student.
CHETRY: I know what you're saying. I mean, it's been a long time since either one of us has been in high school or middle school. But I can still remember the names of those teachers that made such a difference because they challenged me and they showed they cared. And it was the little things.
And, you know, right now, we're really facing a crisis around the country. Arne Duncan, the education secretary, is saying that, you know, we could be looking at worst-case scenario, 300,000 teacher layoffs, maybe 100,000 in a better case scenario. But, you know, what are we doing when it comes to this big fiscal situation that we find ourselves in and who ends up suffering when we have to make these types of cuts?
WESSLING: Well, certainly, what we have to keep in the forefront of our minds all of the time are our students. And what -- what are the ramifications of our choices and our decisions, you know, on -- in local levels, on state levels, and certainly, at the national level, on education of our students. Because what we know and believe in this country is that, you know, a public education is a great liberator. And it is the aspect that can make a difference in lives.
And we have to remember that our decisions will impact students. And we have to support the system and the opportunities that they have.
ROBERTS: You know, Sarah, at the same time that we got this budget crisis in many states and municipalities leading to the layoff of potentially hundreds of thousands of teachers. There are these low-achieving schools. We've seen in some school districts that entire staff had been fired.
Are -- is that right approach? Are teachers the reasons for low-performing schools? Or is there a socio-economic component to it as well? I mean, you could be the best teacher in the country, but if you can't get a kid in the school, how are you going to teach them?
WESSLING: You know, I think that one of the things we need to do is we need to look at the resources we have in schools already. We need to locate kind of in the nooks and crannies where that, you know, tremendous education is coming from and where that fantastic instruction is at. And we have to find ways to capitalize on that.
We must give teachers the opportunity to collaborate together. We have to find ways to carve out time during school days for teachers to have meaningful conversations so that they can, you know, hold each other accountable and learn together and grow together, and become the kinds of deliberate decision-makers on a daily basis that will propel those students to exceed those expectations.
CHETRY: Well, you're certainly doing it yourself and I'm glad you're getting recognized for it. You have -- I can't imagine how busy -- you have a new little one, right, 4 months old? Two other children?
WESSLING: Four-and-a-half.
CHETRY: Four-and-a-half months old.
WESSLING: Yes.
CHETRY: Two other children. God bless you.
Sarah Brown Wessling, congratulations.
WESSLING: Thank you very much.
ROBERTS: Well done. Well done.
CHETRY: Well, it's 44 minutes past the hour. When we come back, Rob is going to have the morning travel forecast for us.
ROBERTS: And in 10 minutes time, Senate hearings aren't known for their entertainment value. But this one is different. From potty mouth senator to protesters dressed as prison inmates, Jeanne Moos with some of the antics from the Goldman Sachs hearings.
Stay with us.
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CHETRY: Beautiful shot this morning in Orlando where it's 62 degrees right now and clear. A little bit later, it will be 77 and sunny. Nice place to be today if you're headed to Disney.
ROBERTS: Nice place to be if you like a warm weather, but if you want to get in a little bit of late spring skiing, you want to head up to Vermont where there's a little bit of snow shall we say. Rob Marciano tracking the weather for us, and he joins us now from the Weather Center in Atlanta. How much did they get?
ROB MARCIANO, AMS METEOROLOGIST: In some spots over a foot, so, you consider that a lot of snow especially when it's the heavy wet spring type of now snow. The cold there not just up in parts of upstate New York and Northern New England. It expands back through the Ohio River Valley where area of frost and freeze warnings out. Temperature is right around the freezing mark, so this will probably be the last time we see temperatures threatening in sort of early spring vegetation you may have out in the yards, so just be aware of that.
Here's the snow. This is pretty much the same radar we saw yesterday with everything just kind of winding around the low that brought the severe weather over the weekend, and the snow continues to whip around this thing across Saint Lawrence County and upstate New York, the Adirondacks down through way and up through parts of the green and white mountains of New Hampshire and Vermont. We still have winter storm warnings posted, 8 to 18 inches possible. We've already seen a foot in some spots. Check out some of these snows, can you believe we're almost May 1, 13.3 inches North Underhill, Vermont, Jericho seeing a foot, Cambridge seeing 11 inches, and Western Vermont seeing 7.9 inches, just a few inches in Burlington but was enough to set a record. It's going to be breezy again today and cool. We're starting to see things dry out across the southeastern third of the country and very, very windy out west.
We had winds gusting over 100 miles an hour along the California and Nevada border, parts of Reno without power because of those high winds and some higher elevations of snow, so windy conditions will prevail especially and places like Salt Lake and Denver today, a high temperature there of about 74 degrees. It will be 70 degrees in Atlanta and 58 degrees, kind of chilly, certainly a chilly start in New York. John and Kiran, back up to you.
ROBERTS: They were just switching over to summer activities after were in stow, maybe they should get the lifts going again.
MARCIANO: It's always a dicey time of here for sure. See you, guys.
CHETRY: That it is. All right. Rob, thanks.
Our top stories just a couple of minutes away, including denying the double dealing in the swimmy (ph) business practices. Goldman Sachs getting slammed on Capitol Hill, and it got a little PG-13 with all the grandstanding, but will it lead to any real reform? >
ROBERTS: And 11 minutes after the hour, new rules to stop you from getting stock on an airplane, but could they back fire and mean more cancellations, more misconnections, and more lost bags?
And at 50 minutes past the hour, it's barely air anymore. A new report says more than half of the people in this country are living in places where it's sometimes too dangerous to breathe. What still needs to be done to make it healthy again. Those stories and more coming up at the top of the hour.
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(BEGIN VIDEO CLIP)
JAY LENO, "THE TONIGHT SHOW" HOST: The Goldman Sachs testified before Congress today. See, that proves crooks always return to the scene of the crime.
(LAUGHING)
(END VIDEO CLIP)
ROBERTS: Time now for the Moost News in the Morning. It was an all day grilling on Capitol Hill with Goldman Sachs executives getting roasted from both sides of the aisle.
CHETRY: Oh, yes, and you certainly heard some words you don't usually hear from senators. They let loose in a hearing that was dripping with content and laced with profanity. Jeanne Moos followed the drama, the bleeps and all.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): Wonder which was worse?
UNIDENTIFIED FEMALE: How do you feel about destroying the American economy?
MOOS: Being chased down the hall by protesters and press, or getting pressed by senators?
UNIDENTIFIED MALE: Your own person said they're too smart to buy this kind of junk.
UNIDENTIFIED MALE: Don't do the hindsight thing with me. I mean, come on.
MOOS: There was headshaking, head wiping, and head scratching. But the thing this hearing may be most remembered for was a six-letter word not usually heard at congressional hearings.
UNIDENTIFIED MALE: Boy, that Timberwolf was one (EXPLETIVE WORD) deal. How much of that (EXPLETIVE WORD) deal did you sell to your clients? You didn't tell them you thought it was a (EXPLETIVE WORD) deal.
MOOS: Committee chairman, Senator Carl Levin, got the term from an internal Goldman Sachs e-mail, not internal anymore.
UNIDENTIFIED MALE: How about the fact you sold hundreds of millions of that deal after your people knew it was a (EXPLETIVE WORD) deal. Does that bother you at all?
MOOS: Didn't bother the media. Some Web sites kept count.
UNIDENTIFIED MALE: Should Goldman Sachs be trying to sell a (EXPLETIVE WORD) deal?
UNIDENTIFIED MALE: I didn't say that.
UNIDENTIFIED MALE: No, who did? Your people, internally. You knew it was (EXPLETIVE WORD) deal.
MOOS: Former Goldman Sachs, Daniel Sparks, took a couple of swings after that exchange, only to have another senator bring it up again an hour later.
UNIDENTIFIED FEMALE: By the way, this is the same one that your folks called (EXPLETIVE WORD).
MOOS: And six hours later, it came up again. This time, directed at Goldman CEO.
UNIDENTIFIED MALE: A junk or a piece of crap or (EXPLETIVE WORD) deal.
MOOS: If you were this Goldman Sachs exec, you would sigh, too. All eyes were on him partly because of his nickname --
FABRICE TOURRE, VP OF GOLDMAN SACHS: My name is Fabrice Tourre.
MOOS: The French man is better know as Fabulous Fab.
UNIDENTIFIED FEMALE: Is that how they do it in France, Fab?
MOOS: Protesters dress like convicts were relentless.
UNIDENTIFIED MALE: You can't even accept responsibility, a small amount of responsibility.
UNIDENTIFIED MALE: I firmly believe that my comment (ph) was correct.
UNIDENTIFIED MALE: I do not think that we did anything wrong.
UNIDENTIFIED MALE: I don't have regrets about doing things that I think were improper.
UNIDENTIFIED MALE: You got no regrets, you ought to have plenty of regrets.
MOOS: The protesters dressed as inmates.
UNIDENTIFIED FEMALE: All of your money won't keep you out of jail.
MOOS: Ended up being corralled by police as photons (ph) bounced off walls and into each other, talk about the need for regulation.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHETRY: That has to be one of the most exciting days in a long time down there in Capitol Hill. Wow.
ROBERTS: That was a hearing of a different color yesterday, off color. Wow.
CHETRY: Kids, turn off C-Span immediately.
ROBERTS: Can you imagine the person in C-Span. Did they have somebody on the button at C-Span?
CHETRY: I don't know.
ROBERTS: C-Span now on an eight second delay.
CHETRY: Exactly.
ROBERTS: Fifty-six and a half minutes after the hour and the top stories are coming your way right after the break. Don't go away.
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