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American Morning
Obama Enters The Budget Battle; Gadhafi Son to Take Over?; Alleged Libyan Rape Victim Speaks Out; Japan Sorry for Radioactive Dump; Fallout from a Government Shutdown; Serial Killer in New York?; The Cost to Cruise; End of American Apparel?; Interview with Jesse Ventura; Investigation Into Nosy Apps
Aired April 05, 2011 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: Ahead on this AMERICAN MORNING, President Obama ready to jump into the budget battle. He's calling congressional leaders to the White House for a critical meeting this morning. A government shutdown is looming and that could directly hurt your paycheck and your tax refund.
ALI VELSHI, CNN ANCHOR: Japan is apologizing for dumping millions of gallons of radioactive water into the Pacific Ocean, saying there's simply no other choice and it looks like the dumping may not stop for days.
KIRAN CHETRY, CNN ANCHOR: Also, Moammar Gadhafi, could he be replaced by another Gadhafi? This is his son, Seif, and it looks like the Libyan dictator may have a plan to hand off power.
ROMANS: Plus, the search for a serial killer in the suburbs of New York. That's all ahead on this AMERICAN MORNING.
(COMMERCIAL BREAK)
VELSHI: I'm Ali Velshi. A lot happened overnight. Let's get you caught up.
The president stepping into the budget battle trying to prevent a government shutdown and if he cannot cut a deal by Friday, you may not be seeing that tax refund any time soon.
CHETRY: I'm Kiran Chetry. Boeing 737, it's a workhorse of the sky. Now the FAA is ordering emergency inspections of older 737s for potential cracks in the fuselage, similar to those that caused that five-foot hole to open up on a Southwest flight in midair.
ROMANS: And replacing one Gadhafi with another. Talks going on right now that may lead to the end of Moammar Gadhafi's 42-year reign. But would his son be any better? On this AMERICAN MORNING.
VELSHI: Good morning. Welcome to AMERICAN MORNING, this Tuesday, April 5th.
ROMANS: There's a lot going on today. We're watching Libya and talks about a possible succession there for Moammar Gadhafi. Also, still watching the radioactive situation in Japan, and explosions and bloodshed at Ivory Coast. We're going to tell you what that -- what's happening there, the very latest.
CHETRY: Yes. Meantime, though, we get you started here at home where we're playing politics in Washington over the budget and it could affect you at home in a matter of days.
In just four hours, the president sits down at the White House with leaders of both parties and he's trying to broker a budget deal that Democrats and Republicans can live with. He has until Friday to get that done. If he fails, the federal government will shut down. Jim Acosta live in Washington.
It feels a little bit like Groundhog Day. We talked about this earlier in the month.
JIM ACOSTA, CNN CORRESPONDENT: That's right.
CHETRY: And they managed to get at least something continuing to keep the government running, but now they say that this shutdown seems more imminent. What's the word?
ACOSTA: Kiran, there are fresh signs this morning that the government may not be able to avert a shutdown at the end of the week. An aide to House Speaker John Boehner has told CNN that Republican leaders are advising their members to get ready for a shutdown. That's because Democrats and Republicans still cannot agree on a budget for this year. As you know, the government has been operating on stopgap spending measures, what's known as continuing resolutions for months now.
Later this morning, the president has invited Boehner, Senate Majority Leader Harry Reid and the two appropriations committee chairman in the House and Senate over to the White House for negotiations on a budget agreement. But a Democratic source on Capitol Hill told me yesterday both sides are still very far apart on a deal. But White House spokesman Jay Carney says they remain optimistic. The administration, he says, wants to have what it calls an adult conversation with Republicans on how to move forward.
(BEGIN VIDEO CLIP)
JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The president has said since his State of the Union address that he looks forward to engaging in a conversation, an adult conversation, about the challenges that face us and our fiscal future, entitlement reform, defense spending, tax reform, the issues that really affect our long-term deficit and debt. As you know, there are procedures that have been placed since the 1980s for this kind of situation. There's nothing unusual that this government, this administration, is doing with regards to the situation we are in now.
(END VIDEO CLIP)
ACOSTA: Meanwhile, Republicans want to have their own adult conversation with Democrats, they say, on the budget. They are raising the stakes in this showdown. Later today, House Budget Committee Chairman Paul Ryan is expected to unveil his proposal for a budget for 2012. It's called his plan for prosperity. And here are some of the details. Let me show you this.
These are some pretty dramatic changes that he's talking about. It would cut $6 trillion, that's trillion with a "t," over 10 years. The plan would also convert Medicaid, that is the health care program for the poor into a federal block grant program. A program that would also convert Medicare, that is the health care plan for seniors into a premium payment program or voucher program and it would also lower corporate tax rates to 25 percent. All of that coming from House Budget Committee Chairman Paul Ryan later today.
And meanwhile, if that's not enough for you, Kiran, there is some talk about, yes, another continuing resolution. That also coming out of the office of House Speaker John Boehner. They're not sure whether or not they'll get one this time. It appears all sides are ready to go for this shutdown if they can't reach an agreement sometime this week, Kiran.
CHETRY: All right. Jim Acosta breaking it all down for us this morning from Washington. Thanks so much.
ACOSTA: You bet.
CHETRY: You know, we talk about this a lot. Sometimes people's eyes glaze over. But we're talking possibly delay of tax refunds, of paychecks to our troops.
VELSHI: It's -- Christine sort of said yesterday, it's tremendously boring and remarkably important.
ROMANS: Oh, yes, it will affect the way --
VELSHI: Yes.
ROMANS: It's incredibly --
VELSHI: And by the way, complicated because we've got this 2011 budget we're dealing with and then we've got Paul Ryan's budget proposal which is --
ROMANS: For 2012.
VELSHI: -- matches up with the president's budget proposal for 2012 for the budget that starts in October.
CHETRY: Right. And then they have to get into the talks about raising the debt ceiling on top of that.
VELSHI: Yes.
CHETRY: So a lot to get done.
VELSHI: Yes.
CHETRY: And very few days to do it.
ROMANS: That's right. All right. New signs this morning that the Libyan dictator, Moammar Gadhafi, may be looking for a way out after 42 years in power. A source close to the Libyan leadership telling CNN that the plan would have Gadhafi's son, Seif, take over. He would help usher in reforms that could reportedly lead to elections. Seif was once looked at as a leading reformer in the country, but he's also the one who threatened, quote, "rivers of blood if the people rose up against his father."
Her story has riveted the world. A woman who escaped Gadhafi's forces burst into a hotel, screaming to tell foreign journalists that she was gang-raped by his troops. Take a look again at the scene that unfolded.
She was simply muscled out of the room, a jacket thrown over her head by undercover government officials in full view of all these foreign journalists. But she did get her story out to the world when she called into "AC 360" last night. Some of the details were so graphic we can't really replay it for you right now, but here she explains why she took the chance she did.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN CORRESPONDENT: When you were in the hotel room trying to talk to the journalists and other -- and Libyan government thugs were attacking you, trying to silence you, what was going through your mind?
EMAN Al-OBEIDY (through translator): I was not thinking anything when I came to the hotel. I heard about the existence of the fact-finding organization. I came here because I knew that the Libyan authorities won't respect my rights or talk about this issue. I could have been jailed and nobody would have heard my story. I was just looking for my rights to be returned.
I came even though I knew that the Libyan government would not leave me alone and would try to silence me. I knew that they could imprison me and that no one may ever know my story. And even when they were hitting me and trying to cover my face so that I would not tell people the truth, I was not afraid. I've reached the end of my tolerance for this as a human.
(END VIDEO CLIP)
ROMANS: Eman al-Obeidy (ph) says she is still in hiding right now and has been rearrested, she says, several times.
CHETRY: Well, in the West African nation of Ivory Coast, the president who refuses to leave appears to be cornered this morning. It's believed that Laurent Gbagbo is in a bunker beneath his residence, where he's reportedly trying to negotiate a surrender. NATO and French troops launched helicopter strikes on his residence and two of his military bases overnight after all of these clashes have broken out in the wake of their disputed election.
VELSHI: Right. And most of the world thinks that Gbagbo's opposition is the man who should be recognized as the leader of the country, but he is refusing to give up.
We've been talking about this for a couple of days. The FAA ordering new inspections of older model Boeing 737s now, for hidden signs of metal fatigue. This new news comes after a tear in the fuselage of a Southwest Airlines 737 300 version plane forced an emergency landing in Arizona. You're looking at that plane now. Similar cracks were detected on three other planes. The inspection order affects about 87 737 300s, 400s and 500s, planes registered in the United States mostly operated by Southwest Airlines. The airline canceled dozens more flights yesterday while inspecting its 737 fleet.
CHETRY: The Obama administration is conceding defeat and will not prosecute high profile terror suspects in civilian court. So what that does mean? Well, Khalid Sheikh Mohammed, pictured here, the suspected mastermind behind the 9/11 attacks, will be tried instead at Guantanamo Bay under a military commission. Attorney General Eric Holder telling reporters yesterday that that White House really had no choice.
(BEGIN VIDEO CLIP)
ERIC HOLDER, ATTORNEY GENERAL: Unfortunately, since I made that decision, members of Congress have intervened and imposed restrictions, blocking the administration from bringing any Guantanamo detainees to trial in the United States.
(END VIDEO CLIP)
CHETRY: Of course, this is a major reversal of the president's campaign promise to shut down Guantanamo Bay within a year. Prosecutors, Pentagon's chief prosecutor, now says charges against Khalid Sheikh Mohammed, as well as four others, will be filed shortly and the cases will be tried at Guantanamo.
ROMANS: Japan now saying sorry for having to dump millions of gallons of highly radioactive water into the Pacific Ocean, but plant officials still say it's simply the best choice they have, that they need to make room for water that's even more radioactive. And now, some people living near the nuclear plant are getting some money for their troubles. The power company says it will start paying out compensation to people and farmers whose lives and livelihoods have been gravely affected by the crisis. But one local official says the amount only comes out to about $12 a person in American dollars. In his town, the company is saying that at this point, these are ceremonial payments.
And at least there's one heartwarming story coming out of Japan this morning. A dog now back with his family in Japan, wagging his tail and jumping into a woman's arms. The dog named "Ban" was spotted by a chopper floating over a mile offshore on a house last Friday. He was separated from his owner during the tsunami, of course, three weeks ago.
CHETRY: It's just amazing he floated on a rooftop for three weeks.
VELSHI: Yes. CHETRY: I mean, I don't know what he ate, but he survived. And the fact that he was able to be brought back home is unbelievable.
VELSHI: Well, the tornado threat continuing this morning after some of the most extreme weather we've seen so far this spring and we've seen a lot of it. Twisters tearing across the southeast. Reports of damage and more than a dozen people injured across at least four states. Several of them were inside this manufacturing plant in Kentucky when a tornado apparently slammed into it and tore a hole right through it.
Rob Marciano in the Extreme Weather Center. Boy, we call it the Extreme Weather Center. You really have been seeing extreme weather since the onset of spring.
ROB MARCIANO, AMS METEOROLOGIST: I tell you what, my house was the Extreme Weather Center. Last night, we woke up in the dark along this morning along with thousands of other folks in Atlanta. It was a rough night for --
CHETRY: You had an outage? You guys had an outage.
MARCIANO: Oh, yes. Widespread across much of Atlanta and so trees down everywhere. No tornadoes reported in Georgia, but a lot of, obviously, straight line wind damage. And this is a huge system as you see behind me.
I want to show you another piece of video out of northwestern Mississippi, one of many spots that saw it. We had over 700 reports of damaging winds. And this, this picture, you know, could be echoed or dittoed throughout much of the southeast with winds at times in spots like Shelby County, Tennessee, 80 miles an hour, very close to this spot. Metairie, Louisiana, 90-mile-an-hour wind gusts. Unbelievable stuff.
All right. Here's where the threat is today. We're starting to see the storms push off to the east. Right along the immediate eastern coastline is where you're seeing the most rough weather. But in Philadelphia and about to move through Jersey are some of the damaging storms although these last couple of fronts looks like it may be weakening. That would be good news, but it's going to hit New York here in the next couple of hours as well. So highly populated areas being affected this morning. A little bit farther down to the south and through Charleston and Savannah, also seeing some rough weather. This will slowly push off shore.
Cooler air and windy conditions in behind this system. The severe weather threat will continue, I think, throughout the day today and tonight across parts of Florida. Sixty degrees for the high temperature in New York City, but the bigger issue is going to be your thunderstorms which will be increasing throughout the morning. Already there is a two-hour delay at LaGuardia, so air travel is going to be a problem as well.
VELSHI: That's fully 15 degrees warmer as a high in New York City than last week. CHETRY: Right. The tradeoff is torrential downpours.
VELSHI: There's going to be rain.
CHETRY: Thanks, Rob.
VELSHI: All right. Rob, good to see you.
MARCIANO: All right, guys.
VELSHI: It's over.
CHETRY: It is over and the thing is it's very underwhelming. Some were joking there's no highlights to find from last night's NCAA playoff basketball game, basketball game. The UConn Huskies ended up winning it. They beat Butler 53-41.
OK. Very low-scoring game. UConn's third national title, though, since 1999 and caps one of the best-ever postseason runs in college basketball for the Huskies finishing with 11 straight wins. The victory touched off ruckus celebrations on the Connecticut campus. In stores, it's pretty much been an all-night party for the students. They basically ran on to their -- you know, into their court. They were watching it at their own basketball stadium.
VELSHI: So Butler makes it anywhere close to the end next year. We're going to have to stop talking about Butler as a Cinderella story.
CHETRY: Butler as a Cinderella story.
VELSHI: Exactly.
CHETRY: Yes, but they were very -- I mean, in their press conference, some of them were crying.
VELSHI: Sure.
CHETRY: I mean, they only scored three field goals technically. They didn't do well.
VELSHI: This whole discussion about low-scoring games, remember when we were talking about the World Cup, where --
CHETRY: Right.
VELSHI: -- 1-1, 2-1 --
ROMANS: Right.
VELSHI: -- 53-41, low scoring game in basketball.
All right. Coming up ahead on AMERICAN MORNING, desperately seeking compromise in Yemen. The White House is trying to get the country's president out while not giving Al Qaeda an in. This is a shift in U.S. foreign policy. ROMANS: Eight people murdered, their bodies discarded on a New York beach. Police now on the hunt for a serial killer. Details up next.
CHETRY: NASA forced to delay the final mission of space shuttle "Endeavour." We're going to explain why this is happening on the launch pad there, but not going up any time soon.
Fourteen minutes past the hour.
(COMMERCIAL BREAK)
VELSHI: We are hearing a lot about a possible government shutdown if Congress cannot get a compromised deal on a budget by Friday. This has not happened in 15 years.
Let's take a look at what happens if there is a shutdown. Last time they did it, the Feds closed 368 national parks, all national monuments and museums. Passport applications were stalled. That's an important one. And cleanup work stopped at 609 toxic waste sites.
Now, U.S. troops, including those fighting in Iraq and Afghanistan, could see their paychecks interrupted. We're hoping that's not going to be the case.
What else happens? Well, these things stay. These things continue running. Essential services. For instance, air traffic control, we can't shut that down. The National Security System would stay on- line.
Also, who else stays? Well, federal workers who provide medical care, handle hazardous waste, inspect food, deal with border patrol, prison guards who guard inmates and those who work in power distribution, all of them stay on the job as do federal employees who protect our financial system.
Now during the two government shutdowns in the 1990s, more than a million workers, million federal workers, were sent home. However, the government has legal authority to continue mailing social security checks so they kept coming out there. They would have the legal authority to do so again, but your tax returns may be in jeopardy if you have not already filed. So those are the kind of things that are going to affect you if a deal is not reached.
Remember, two things can happen. They can reach a deal or they cannot reach a deal. But they can extend the time that they give themselves for another week, two weeks or three weeks. We are going to stay on top of that for you - Kiran.
CHETRY: Ali, thanks.
Meantime, there are new developments to tell you about in Yemen. There is a shift in the White House policy now. The White House is trying to get the country's president out. The challenge, though, is not giving al Qaeda an in at the same time. The U.S. is trying to mediate a transition out of office for President Ali Abdullah Saleh. This departure date is an issue that's now being discussed. The White House says, though, it appears that Saleh is digging in against the anti-government protests.
Meantime, Yemeni forces continue their deadly crackdown on pro- democracy demonstrators. The U.S. is concerned that al Qaeda could try to use the politically unstable situation in Yemen to its advantage.
Meantime, to Haiti where a musician beats a former first lady in the race for president. Singer Michel Martelly is the now the next president of Haiti taking victory over Mirlande Manigat. The results were announced yesterday. Martelly earned nearly 68 percent of the votes. Supporters celebrated in the streets after that announcement. The runoff was held last month after a controversial general election where violent protests broke out over accusations of fraud.
ROMANS: In New York, the hunt is on for a serial killer. Police say three more sets of human remains have been found on a beach on Long Island. That's now eight victims discovered there in less than a year.
Allan Chernoff is here with the details. It's on a desolate stretch of beach in a suburb of - of New York. Eight bodies now.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Yes. Eight bodies and police are quite certain that they're looking for a serial killer who preys upon prostitutes.
Yesterday afternoon, the stunning news came that three more bodies had been discovered. This is an area that is absolutely desolate, a long stretch of about 16, 17 miles. It's near Jones Beach, if some of you have been to that very popular beach, but it's further east from there. Very few people live out there.
There were three bodies yesterday, one last week, and then back in December, four. So that brings the body count now to eight. Absolutely stunning. The four bodies that were found in December were identified as women who had worked as prostitutes and had advertised on Craigslist.
There is another woman that has been missing since last May. Her name is Shannan Gilbert. She also had worked as a prostitute. She was last seen in the community of Oak Beach right in this area where the police have been searching. Her remains have not yet been identified. Perhaps one of these bodies that has just been found will be identified as hers.
The bodies right now are at the Suffolk Medical Examiner, so they're going to use DNA analysis. That could take several weeks. And the search may continue today. It's all going to depend on the weather.
The canine dog teams that are being used, they're very sensitive to the rain so they can't really operate in the rain. But they've been using three teams of canines, 25 police recruits. There's lots of brush in this area, lots of garbage, high grass, as you can see brambles there. It's - it's a real tough search.
ROMANS: We don't know how long they've been there. We don't know when the crimes may have happened. I mean, for evident - for evidentiary purposes it could be difficult to get a lot of good evidence. We don't know how long they were there or if they were dumped there.
CHERNOFF: Well, it seems clear they were - were dumped, but beyond that, we really don't know much. We do understand that some of the bodies back in December were wrapped in burlap. Police have not on the record confirmed that. But we - we understand that is, indeed, the case. Otherwise they're not giving many clues out.
CHETRY: Are there any - do they have any leads on a suspect or is that just still something that they're not sure of?
CHERNOFF: The woman, Gilbert, had been at the home of one individual. She had paid a call to an individual in Oak Beach. The police have interviewed that individual. They say he is not a suspect.
CHETRY: All right. So it continues. Very disturbing, though, Alan. Thanks so much.
CHERNOFF: Indeed. Indeed.
ROMANS: All right. Up next on AMERICAN MORNING, owning a car getting more expensive and it's not just because you're paying more at the gas station and you are. We're going to explain why the everyday drive, the commute getting more expensive every day.
It's 22 minutes past the hour.
(COMMERCIAL BREAK)
ROMANS: All right. It's costing more to own and operate your car and it's not only because of gas prices.
VELSHI: Yes.
ROMANS: I would have guessed it was only gas prices.
VELSHI: I would have guessed that, too. Alison Kosik, her to tell us about it. What is it?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You know, have you changed your tires lately?
CHETRY: I was just about to say is it the tires? They - they're - they'll bankrupt you. You just ride (ph) on the doughnut.
VELSHI: Because of the rubber, the cost of rubber?
CHETRY: And if you'd ride on the doughnut for as long as possible.
KOSIK: Ali - I think Ali got it.
Well, you know what? It is tires and it - it's the cost of raw materials. That's what's really going into why tires are going up. You know, it takes a lot more money to make the tires. In fact - and then get the tires, of course, from point A to point B. So that's why we're seeing a 16 percent rise in cost for tires. So, yes. And we have to get our tires changed because of all that wear and tear, so you can't get away from that.
Also, gas prices do factor into this as well. Gas prices are up. We know oil prices are up to $108 a barrel. That's the main ingredient in gas as well. OK?
So the third reason why it's costing more to drive your car, depreciation costs are up to about $3,800 a sedan. That's good news if you're looking to trade in your car because the car's holding value, but it's not so good if you're looking to buy a used car.
That's where people are really going these days. They're buying used cars, especially Chevrolet Cobalts, Ford Focuses, Toyota Corollas. You know, more people are going for those used cars because they're cheaper.
VELSHI: And - and, as a result, the - the value is holding up.
(CROSSTALK)
KOSIK: Exactly.
CHETRY: You know, I was wondering, you said you have to change your tires because the tread wears down. We've had such a brutal winter in the northeast.
KOSIK: Oh, yes.
CHETRY: A lot of the roads are in such bad condition people are popping their tires on potholes all the time.
VELSHI: I was - I was driving with my wife the other day and there was this crazy knocking sounds. I said, "Pull over," and I looked at it, a piece of tread comes off. So I go, snip it off, I said, "Keep driving." So we keep driving.
Five minutes later, more tread's coming off.
CHETRY: (INAUDIBLE).
VELSHI: So I finally ripped a hole (ph) and one whole line of tread, and I said, "You know what? Just keep going with that."
She finally pulled into a Pep Boys and they said, "Ma'am, you really have to change this tire."
CHETRY: (INAUDIBLE), right?
VELSHI: So she changed it. And -
ROMANS: And (INAUDIBLE), you would never make it.
VELSHI: And now she's looking into the insurance policies to wonder why I was so anxious for her to keep driving.
KOSIK: There you go. Nice, Ali.
CHETRY: But, seriously, it is bad out there. I mean, you -
VELSHI: Yes.
CHETRY: The tires are -
KOSIK: I know. That's a huge cost. And this isn't even paying for the car. This is keeping the car up and running so you can -
VELSHI: Right.
KOSIK: -- get to work and back and do everything you need to do.
ROMANS: It's all those little things that one after another -
CHETRY: They add up.
ROMANS: The cost of feeding your family, the cost of insurance, you're paying more for your out of pocket medical -
VELSHI: Insidious extra costs.
ROMANS: -- you're paying more to drive your car to your job, you're working harder at your job. I could go on and on.
(CROSSTALK)
CHETRY: Thanks, Alison.
VELSHI: Thank you, Alison.
And here's a story that - that we've been following for some time, but you're going to find pretty interesting. A popular clothing chain may shut its doors for good.
ROMANS: Really?
VELSHI: American Apparel is facing bankruptcy, its CEO facing a multimillion-dollar sex abuse lawsuit. Jason Carroll spoke with the chain's embattled founder and he's going to have that report coming up.
It is 28 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Good morning. It's 31 minutes after the hour. Time for this morning's top stories.
The budget battle shifts to the White House this morning. President Obama has called a 10:15 Eastern meeting, inviting congressional leaders from both parties to hammer out a plan that has got to be ready by Friday. If a deal doesn't get done, parts of the federal government will shut down.
The FAA, the Federal Aviation Administration, is set to broaden inspections on older Boeing 737 planes. This after the fuselage ripped open on a Southwest Airlines jet, that one you're looking at, at 34,000 feet last week, leaving a five-foot gash and forcing an emergency landing. About 175 aircraft are affected worldwide, and most of the planes are here in the United States and operated by Southwest. But they have expanded east of the 737-300s, 400s and 500 series.
All right. Could there be another Gadhafi regime? A source close to the Libyan leadership tells CNN that a plan is in the works that could have Gadhafi's son Seif take over. He would help usher in reforms that could reportedly lead to elections. A Libyan official is testing the waters for that plan in Europe now. A former Libyan ambassador to the United States calls the whole offer ridiculous, saying Gadhafi's sons are killers just like their father.
ROMANS: OK. He founded a clothing empire, but American Apparel CEO Dov Charney is struggling to keep things afloat now, losing $86 million in sales, slapped with $250 million sex abuse lawsuit. But Charney is not going down without a fight.
Jason Carroll talked to him exclusively and joins us now.
This guy always cultivated a persona of edgy and sexy, some would say borderline pornographic. But now, he's really, really under the gun, with a big lawsuit and the company that has been failing.
JASON CARROLL, CNN CORRESPONDENT: Yes. Financially, he's got some issues there. Remember, he had to lay off, what, some 1,500 employees, many of them undocumented, couldn't meet production costs, couldn't meet deadlines, which is why he's got the financial problems. But that's just the beginning of what he's got to deal with.
You know, Charney says he's unorthodox but not unethical, and he says the attorney and those accusing him of sexual assault are out for one thing: money.
(BEGIN VIDEOTAPE)
DOV CHARNEY, AMERICAN APPAREL CEO: We've lost our stride a little bit.
CARROLL (voice-over): And Dov Charney is still struggling to hit his financial stride, but the CEO and founder of fashion giant American Apparel faces another problem, calling two lawsuits totaling $250 million, alleging sexual harassment and assault extortion.
CHARNEY: I've never assaulted anybody in my entire life.
CARROLL: Five former employees are suing him, Kimbra Lo says Charney forced her into taking revealing photos at his home.
(on camera): She said she was afraid to say something, that's why she allowed the pictures to be taken. CHARNEY: I have, you know -- I have -- I think these pictures speak for themselves.
CARROLL (voice-over): The attorney representing the women spoke on their behalf.
ERIC BAUM, PLAINTIFF'S ATTORNEY: She was alone with Dov Charney. Every time she tried to stop his advances, he became more and more aggressive with her.
CARROLL: Another former employee, Irene Morales, alleges in 2008, after her 18th birthday, Charney demanded sexual service in exchange for continued employment.
(on camera): Do you think it's appropriate for a man of, I don't know, even 40, to have a relationship with a young woman of that age?
CHARNEY: I don't think -- I'm not qualified to make an opinion of that kind. You can accuse someone of sexually assaulting them in April of 2008, but then when you send them provocative e-mails, soliciting sexual relationship in the years 2009 and 2010. CARROLL (voice-over): Charney provided it text messages from Morales saying, "I miss you." A 2009 e-mail from her saying, ""Daddy's got a little naughty girl." Another in 2010, "I don't want your money, I just love this company and want to work for you."
(on camera): There are text messages, explicit e-mails coming from your client which seem to suggest that your client was reaching out to Dov Charney.
BAUM: She was victimized. She lost all her self-esteem. And a result of that, she saw herself as nothing more than a sex object. This explains why she would send photographs and e-mails.
CARROLL (voice-over): Charney has been celebrated for supporting workers' rights, but demonized for some of his racy ads. He's faced allegations of sexual harassment before.
(on camera): You talk to some people about you, and they really see you as a champion for workers' rights. And then you speak to people from another camp who say, this guy's a pervert.
CHARNEY: It's not accurate. I'm a caring person.
(END VIDEOTAPE)
CARROLL: Well, Charney points out none of his alleged victims ever went to the police. He says he'll continue to fight the allegations through arbitration. As for his financial troubles, Charney expects his company to turn around this year. They hired 1,500 employees to help meet some of those production deadlines.
You know, as the point that we were trying to get in there, is you guys know what the deal is with Charney. I mean, again, some people see this guy, you know, made in America. This is something that he has fought for. But on the flip side, they say he just has a problem, you know, dealing with some of his employees in terms of sexual relations.
CHETRY: Wow. And we'll see whether or not the company stays afloat as he goes through all of this.
CARROLL: But, again, he feels as though the company will stay afloat, will turn around this year.
CHETRY: All right. Good stuff, Jason. Thanks.
VELSHI: Thanks, Jason.
CARROLL: You bet.
CHETRY: Well, NASA is delaying the final launch of space shuttle Endeavour. It was supposed to take off April 19th. They're pushing that back 10 days to the 29th.
Why? This is interesting, because a Russian cargo ship is set to dock at the International Space Station, around Endeavour's original launch date. This is confusing, because don't you think they try to coordinate this a little bit.
VELSHI: There's a traffic jam in space.
CHETRY: Basically a traffic jam in outer space. That's right.
Endeavour's final flight and the reason a lot of people are paying attention to this launch because it's going to include astronaut Mark Kelly, who is the husband of Congresswoman Gabrielle Giffords. And a lot was made. He could he train, could he still command this mission, it's been pushed back 10 days. There's a lot of hope that she'll be able to actually attend that launch.
VELSHI: Yes. You would think they would coordinate the arrival of the parking lot.
All right. Jesse Ventura on the ticket in 2012? Who would he run with? Well, he's right here and we're going to ask him.
It is 37 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Thirty-nine minutes past the hour right now.
Our next guest has done it all, Jesse Ventura. He's been governor of Minnesota, a Navy SEAL, a movie star, and extremely popular pro wrestler and even a Harvard professor. Well, now, he's on a mission to find out what the government may not be telling us. He actually wrote a new book about it, "63 Documents the Government Doesn't Want You to Read."
And we also want to get his take on some of the news of the day, all the politics going on, will the government shut down and what are these two parties hope to accomplish.
Thanks for being with us.
JESSE VENTURA, FORMER MINNESOTA GOVERNOR: Thank you. Great to be here.
CHETRY: "63 Documents" I mean, it's great a -- I mean, there are some good conspiracies in here. You say that --
VENTURA: There's no conspiracies in there. Excuse me. Every document in there is in the public. And it's not a conspiracy. That's their documents.
CHETRY: Well, let me just ask you about this one.
VENTURA: OK.
CHETRY: '63 for when Kennedy was shot, right?
VENTURA: Yes.
CHETRY: Why did you write the book?
VENTURA: Because Dick Russell and I felt 63 was a great number. That was the year Jack Kennedy was killed. And I believe that that is the year that a coup d'etat took place in our country because on my TV show, "Conspiracy Theories," we had a confession to the murder of John -- we had a confession.
CHETRY: You don't believe they're telling the whole truth about what happened to John Kennedy.
VENTURA: But we had a confession. E. Howard Hunt confessed to his son St. John Hunt on his death bed, he said it was called the big event. He was on the fringes of it. He named who it was. It was William Harvey who at that time was head of the CIA's assassination team and David Sanchez Morales.
And he is also famous for something else. You know what? He killed Che Guevara in Bolivia in 1967 when they put Jay against the wall and executed him. Sanchez used to wear Guevara's Rolex for a trophy.
ROMANS: People are eating their Cheerios this morning and they're going Jesse Ventura, boy -- I mean, that's not what we learned in history and that's not what mainstream America believes. And what does it matter today? I mean, obviously, it matters. What does it matter today? I mean, we're moving on.
VENTURA: What does it matter today? If you can kill our president and get away with it, what can't you do? I challenge you to that. What can't you do?
VELSHI: Let's bring something closer. You believe 9/11 was a conspiracy as well.
VENTURA: No, I --
VELSHI: The government knew of -- VENTURA: They do.
VELSHI: Senior government officials knew it was going to happen.
VENTURA: Read the documents. Read the documents.
VELSHI: Who? Who do we --
VENTURA: The NSA, they -- I mean, Condoleezza Rice sits out there. The memo -- there's more than that. They didn't look at NSA. They knew four to six months before it happened that there was intel to that level. And Condoleezza Rice sits out and said, we had no idea they were going to fly planes into the buildings.
Excuse me, the memo said it. August 6th, you can't read? You know?
And there are so many questions that I have. They can debunk me, but just give me -- answer my questions. Nobody answers your questions. You're not allowed to talk about 9/11, let alone question it.
And now, of course, if you want to get modern, we're going to have this trial. Well, what these --
VELSHI: You're talking about the trial of Khalid Sheikh Mohammed?
VENTURA: Military tribunal. They're not military. Why are they being tried by the military? That was a murder that took place in New York.
CHETRY: That's right. But it was --
VENTURA: It was the equivalent of trying the Hell's Angels --
CHETRY: But those Democrats and the Republicans did not allow that. I mean, even people who supported Obama like Senator Schumer said this trial cannot take place on -- in New York City.
VENTURA: Why?
CHETRY: So, they really didn't have an option here.
VENTURA: Why?
VELSHI: Well, there are safety concerns about it.
CHETRY: I mean, we could, there was a ton of reasons why the government wasn't letting it happen.
VENTURA: So, you're satisfied with the military tribunal, which is different than a regular trial. It won't -- it will be done behind closed doors, so we'll never hear the evidence, except what they want to tell us. And they'll just simply execute these guys and say OK, we did our job.
CHETRY: What do you want to happen?
VENTURA: How about this? Let me sit down on the tribunal. I'll volunteer. I want to hear the evidence. I want to hear evidence.
(CROSSTALK)
CHETRY: -- admitted mastermind of 9/11.
VENTURA: Wait a minute. Admitted?
CHETRY: They may plead guilty.
VENTURA: Excuse me. They were waterboarded 173 times. I've been waterboarded. I've been waterboarded in SEAL (ph) School as a Navy SEAL. It is torture.
I'll tell you this, any one of you were waterboarded, you'd confess to it, too, because that's why they don't allow torture by the police because any torture is admissible in court because when you're being tortured, you will say whatever is required to stop the torture. And we are now a country who tortures.
ROMANS: I want to ask you about -- I want to switch gears if you don't mind.
VENTURA: All right.
ROMANS: I want to talk about right now and I want to talk about what's happening with the new presidential election, 2012. President -- I mean, his supporters want to raise $1 billion. Is there any hope for a real third party candidate for any not conventional perspective point of view, when you have machines on both parties that are creating such big money-making records?
VENTURA: Probably not because as Ralph Nader said, we live under a two-party dictatorship, and nobody else is let into the game. The difficult thing like if I wanted to run for president, I have to get valid access in all 50 states.
CHETRY: Right.
VENTURA: And it's different everywhere. That's not on purpose. You know, they get access right away, anybody challenges them. They won't get that. Did you hear what I said yesterday?
CHETRY: You would give it a try, right?
VENTURA: No. I said if Ron Paul would quit the Republicans, I would give it serious -- I didn't say I would. But I said I would give serious --
ROMANS: The vice presidential candidate.
VENTURA: Serious consideration to running with him.
VELSHI: Did you get any response from his camp?
VENTURA: No, nothing yet. I don't expect to. You know, it's just something -- you know, no different than Donald Trump saying it. CHETRY: What did you learn as your time as governor? Because -- I mean, you basically, you were actually held up as somebody who actually went in there and did shake up the two-party system, you did it in your state. But, you know, in some of this you're critical of what the government is willing and not willing to tell us.
What was your experience of running a state and how you were able to actually play within that system?
VENTURA: Well, of course, I had no support because I had Democrats and Republicans who are the problem. And, it was difficult, but I did it and -- but the key to my running was I only raised $300,000 to become the governor of Minnesota. At that time, the Dems and Repubs spent $12 million. So, you can see how unpopular I was with them.
VELSHI: You might have a candidate, presidential candidate --
(CROSSTALK)
VELSHI: You might have a presidential candidate coming out of Minnesota. What do you think of Michele Bachmann?
VENTURA: She's my congresswoman. I don't think about her.
VELSHI: Do you think about anybody who would represent you in Congress? Would you think about her if she was someone else?
VENTURA: I don't know. Maybe. But getting back to the book --
(LAUGHTER)
VENTURA: You're getting off. I'm here to promote the book. All these documents are in the public domain.
VELSHI: You like that idea, by the way. You like the WikiLeaks idea?
VENTURA: Absolutely.
VELSHI: You think everybody should see these documents?
VENTURA: Did you know how many documents last year the United States of America classified top secret?
VELSHI: How many?
VENTURA: Sixteen million.
ROMANS: You know how much --
VENTURA: That means --
ROMANS: Do you know how much of this garbage completely contradicts other garbage that's classified. I mean, there's so much just government crap, you know?
VENTURA: Of course. But the point is, they're abusing this. I have every right to know what my country does and what they do. You want to know why? I pay taxes. I have every right to know what they spend my tax money on, and when you look in this book at what they've been spending your tax money on, you should get angry.
CHETRY: It's a very provocative read, Jesse Ventura along with Dick Russell, "63 Documents the Government Doesn't want you to Read". Thanks for being with us this morning.
VENTURA: Thank you.
ROMANS: Next time, when you come on, try to be a little more provocative for us and get people talking.
VENTURA: I'm outspoken, but last time I checked, we used to have the first amendment. I'm not sure we do anymore.
ROMANS: And I'm just teasing you.
VENTURA: I know.
CHETRY: OK.
ROMANS: Jesse Ventura, thanks so much.
Morning's travel forecast right after the break. It's 46 minutes after the hour.
(COMMERCIAL BREAK)
ROB MARCIANO, AMS METEOROLOGIST: Pictures from Nashville, Tennessee, where severe storms rolled through the area last night. Still thousands without power this morning, and Nashville not alone, Memphis, Little Rock, Atlanta, getting hammered with heavy winds and heavy rains, as well. Still about 60,000 people in the Atlanta area without power also.
Here's where those storms are. They're moving rapidly off to the east. Still a couple tornado watches that are out for the extreme coastlines of Florida and the Carolinas and a severe thunderstorm watches posted also for parts of New Jersey as these thunderstorms begin to make their way into the New York metropolitan area, although, the strongest storms seem to be about Philadelphia and a little bit farther to the south and east.
So, as we go through the next couple of hours, these will roll east towards Long Island and in parts of Connecticut and through the lower Hudson Valley, and then, they'll begin to diminish as we go through the afternoon and weekend. Strong storms will hold, I think, across parts of South Florida and Central Florida throughout the afternoon. Some of these will contain some gusty winds.
We are running into some travel delays. LaGuardia seeing two hour and 25 minute delays at this hour already and Philadelphia seeing a50- minute delays. Behind this system, thankfully, is some calmer, albeit cooler weather. That's a quick check on weather. AMERICAN MORNING is coming right back. (BEGIN VIDEO CLIP)
DOMENICA CATELLI, CHEF: Hi. I'm Domenica Catelli. I'm a chef and author, a restaurateur, and I travel about 100 days a year.
So, what we're going to use is an organic juice.
When I'm on the road, I try and make my snacks a little bit more exciting than just nuts. So, what I usually try to do is I will have something called a kind bar which is a mixture of nuts, dried fruits. I also try and bring fresh fruits or vegetables cut up.
Not really good about getting to the airport early. I always am pushing it right to the limit to spend as little time as possible. I streamline as much as I can. It's the best thing you can do as far as ease and getting on and off the planes. I've got it down that I can get packed usually for my trips within, you know, 15 to 20 minutes.
I get everything into a carry-on. I have my clothes all lined up, and I have my separate section in my carry-on with my computer.
I'm Domenica Catelli. Remember, just cook it.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
VELSHI: Federal prosecutors are looking into whether some Smartphone apps, applications, are little too nosy. The internet radio, Pandora, says it received a subpoena related to a grand jury investigation into how your personal information is gathered and shared. Pandora says it is not a specific target and said that any new privacy restrictions would limit its ability to offer users personalized music content and advertisements.
CHETRY: Yes. See, they get you coming and going because Pandora, basically, is the internet radio. And again, if you listen to a bunch of different songs, they remember that so that they give you new music.
(CROSSTALK)
ROMANS: Every time you download the app, you're accepting, you're sharing your information.
VELSHI: There is something for -- I don't mind them knowing what music I like.
CHETRY: But they know your personal information. That's how they determine your music you like.
VELSHI: No one has tried to actually become me, as a result for knowing my personal information.
ROMANS: We're going to continue this for the next two minutes while you go, you know -- CHETRY: Get ready for the top stories. There's going to be a lot of good stuff coming up.
ROMANS: Top stories right after his.
(COMMERCIAL BREAK)
