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Man Arrested in Plot to Assassinate Saudi Ambassador on U.S. Soil; Iran Accused of Backing Assassination Plot; Herman Cain Targeted at GOP Debate; Does Romney's Changing Position on Health Care Matter to You?; U.S. Foils Alleged Iranian Terror Plot; Six Bombings Rock Baghdad; Obama Plans to Break Up Jobs Bill; Cain in the Hot Seat; Conrad Murray on Trial; "Austin Powers" Actor a Murder Suspect; Missing Baby; Fast and Furious Subpoenas Expected; Giuliani: "It's Too Late For Me"; Christie Endorses Romney; Romney Responds to Pastor's "Cult" Comment; The Oil Cleanup "X Challenge"; Donnie Wilson Wins Oil- Cleanup X Challenge; Study: Vitamin E Increases Prostate Cancer Risk; Sex Can Cause Temporary Memory Loss

Aired October 12, 2011 - 06:59   ET

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


(BEGIN VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: Iran accused of conspiring with Mexican drug traffickers to kill a Saudi ambassador right here on U.S. soil.

Plus, foiled by American agent, but is this the beginning of a brand new threat in our own backyard?

ALI VELSHI, CNN ANCHOR: Chaos at an Oklahoma prison. Inmates staging a full-scale riot. Police rushing in to regain control. How it all turned out, ahead.

CHRISTINE ROMANS, CNN ANCHOR: Mitt Romney on a roll. Looking confident and poised at last night's GOP debate after picking up a critical endorsement from a rising Republican star.

COSTELLO: And a U.S. inventor claiming top honors for coming up with a better way to clean up oil spills. American ingenuity alive and well after all on this AMERICAN MORNING.

(END VIDEO CLIP)

VELSHI: GOOD morning. It is Wednesday, October 12th. Welcome to AMERICAN MORNING.

ROMANS: All right. First up, Iranian operative, Mexican drug wars, and a conspiracy to kill an American diplomat in a Washington restaurant, all of that part of an alleged plot foiled by the U.S. government. And new this morning, the State Department issuing a rare, worldwide alert, warning Americans to be on guard against terrorist attacks, this time, out of Iran.

(BEGIN VIDEO CLIP)

ERIC HOLDER, U.S ATTORNEY GENERAL: Manssor Arbabsiar, a naturalized United States citizen who holds an Iranian passport was arrested last month in New York, is accused of working with members of the arm of the Iranian Revolutionary Guard Corps to devise an international murder-for-hire scheme targeting the Saudi Arabian ambassador to the United States.

ROMANS: Their plan, spend $1.5 million to hire a Mexican drug cartel to blow up a Washington, D.C. restaurant while the Saudi ambassador dined inside. But the drug cartel members Arbabsiar contacted, they turned out to be undercover DEA agents.

PREET BHARARA, U.S. ATTORNEY, SOUTHERN DISTRICT OF NEW YORK: When a confidential source noted there could be 100 to 150 people in a fictional restaurant where the requested bombing would take place, including possibly members of the United States Congress, the lead defendant, acting on behalf of a component of the government of Iran said, "No problem," and "No big deal."

ROMANS: According to a senior counterterrorism official, Arbabsiar flew to Mexico last September and was denied entry with cooperation from Mexican authorities. He then flew to New York where he was taken into custody and interrogated for 12 days.

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: They not only got a confession from him, and you see that in the complaint, they also got dozens of intelligence reports and leads.

ROMANS: His co-conspirator remains at large this morning. He is an Iran-based member of the Quds force, a branch of the Islamic revolutionary guard suspected in attacks against American troops overseas.

REP. MIKE ROGERS, (R) MICHIGAN: This is a group we know about. These are folks bringing weapons systems into Iraq that kill U.S. soldiers.

ROMANS: U.S. officials tell CNN, the Saudi ambassador was not the only intended target. The suspects also allegedly discussed attacking Israeli and Saudi embassies in Washington and possibly in Buenos Aires, Argentina. Iran is calling it a distraction a fabrication and an attempting to distract the American public from the slowing economy. Meanwhile, some U.S. lawmakers are saying everything should be on the table in dealing with Iran.

REP. PETE KING, (R) NEW YORK: The Iranians have crossed the red line. If this had been carried out, talk about an act of murder carried out by a foreign government on our soil of a foreign diplomat. Basically this would have been an act of war.

(END VIDEOTAPE)

ROMANS: Senior U.S. diplomats are expected to place calls to foreign leaders today to get tougher on Iran. Of course, Iran is already the subject of numerous sanctions. Carol?

COSTELLO: Yes, it is. Let's bring in Fran Townsend now to talk about the plot, how brazen it was. The suspects are in custody, at least one of them, and the threat level now facing Americans overseas and here at home has risen. Fran Townsend is CNN national security contributor and former Homeland Security adviser to President Bush.

Just the alleged facts of this plot, that forces with the Iranian government were plotting with Mexican drug cartels to hire an assassin to take out a Saudi ambassador on U.S. soil. It sounds like an episode of "24."

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: It does. When you understand the details of it, look, this was an investigation began by a DEA informant. The FBI was tracking the defendants' movements. Saw them go into Mexico, worked with Mexican officials, had federal agents on the plane as it flew from Mexico into New York. The more it sounds like a movie plot, but it's quite serious. We've seen such attacks unfortunately even in the United States. In the '80s the Pinochet regime in Chile targeted in Washington and assassinated a diplomat. And so these things have happened before, but it's a very dangerous development.

COSTELLO: They have happened before, but not for quite a long time. What would be the advantage for the Iranians, if this is true, that such an attack would take place on American soil?

TOWNSEND: That is, Carol, very sort of confounding. You saw the protests, Shia minority in Bahrain against a Sunni family. Saudis also a royal family came to the defense of Bahrain. And so you could imagine such a plot. Sort of evening the score not only with the Saudis against the Shia, but also with the United States, who frankly did not sort of chastise the Saudis for intervening and you could understand, the Saudi ambassador in the United States would sort of, from an Iranian point of view, might settle that score.

COSTELLO: The most disturbing part of this for Americans, I would guess, is that's this alleged assassin was supposed to take out the Saudi ambassador and maybe would be in a restaurant, and that would be OK, he'd just shoot in the restaurant and kill any Americans who might get in the way. That's disturbing.

Can we consider this an escalation in the tension between Iran and the United States and how serious -- I mean, we already don't get along with Iran. Everybody knows that. But how serious is this incident to the relationship between Iran and the United States?

COSTELLO: Oh, I think it's very serious. For one thing, look, there's been something of a stalemate in the U.N. Security Council. The U.S. has sought -- we've had sanctions on Iran. They've been effective, but the U.S. has fought stronger sanctions and been foiled at the Security Council by Russia and China.

So for the U.S. to have the facts it has that we already understand in this case, to be able to take that and leverage it. We've seen the U.K. Prime Minister Cameron saying he's going to work with the United States to seek greater sanctions. To give the U.S. this sort of leverage now is tremendous power. We'll see if they're able to turn that into tougher sanctions. COSTELLO: Military action is not an option. Take that off the table quickly. When you say increased sanctions, what would they be? What more can the United States and other countries do to Iran? Which is pretty isolated already?

TOWNSEND: You'll see additional financial sanctions and denying them even greater access to the world financial system. Iran has much of their revenue, it comes from oil production. They dollarize those transactions. Turn it into dollars to support currency. So you could take additional financial sanctions, and further isolate them. I think that's what they'll see the U.S. attempt to do.

COSTELLO: So final question for you -- Mahmoud Ahmadinejad may not be directly connected to this plot, but what is your sense about that?

TOWNSEND: You know, it's interesting. The FBI sources have indicated that they don't have a direct link either to the supreme leader or President Ahmadinejad yet. I haven't talked to anybody who thinks Quds could have undertaken such a strategically risky operation without having top political cover. Haven't found it yet, but everyone expects it and the Quds force couldn't have gone off on their own, given if they were caught and they went to hide actions by masking it with a Mexican cartel. And I think you're going to eventually find this has sanctions at the highest level.

COSTELLO: And the fact a government was allegedly utilizing drug cartels is disturbing too, but that's another conversation. Fran Townsend, thank you so much for joining us this morning. We appreciate it. Ali?

VELSHI: Great discussion, Carol. Thank you, Fran.

President Obama says he will now create several smaller job bills after the Senate defeated his $447 billion proposal. Every Republican senator voted against the Bill along with a few Democrats. The final vote was 50-49, shy of the 60 votes that are need to pass.

In New York, the occupy Wall Street movement is taking its protest uptown. Hundreds of protestors marching to the Manhattan doorsteps of millionaire moguls yesterday, visiting Rupert Murdoch's Fifth Avenue residence and the Park Avenue homes of oil Tycoon David Koch and bank chairman Howard Milstein, hedge fund manager John Paulsen, demonstrators shouting "Hey, you, millionaires, pay your fair share!"

If President Obama does get reelected, he'll look for a new chief of staff. Bill Daley says he plans to return to Chicago after the 2012 election. Daley succeeded Rahm Emanuel, who left the White House to run for mayor of Chicago.

ROMANS: All right, still to come this morning, Herman Cain in the hot seat. His radical tax plan was ridiculed by rivals during last night's Republican presidential debate in New Hampshire. We'll take it apart again this morning.

COSTELLO: And a full-scale riot at a prison in Oklahoma with guards forced to use tear gas to bring rioting inmates to their knees.

(COMMERCIAL BREAK)

ROMANS: Welcome back. The morning after the latest Republican presidential debate, Mitt Romney looks more like a front-runner than ever and Herman Cain getting his first taste of friendly fire. GOP rivals attacking his nine-nine-nine tax overhaul plan which calls for a nine percent flat tax on income, a nine percent corporate tax, and a nine percent national sales tax.

(BEGIN VIDEO CLIP)

MICHELE BACHMANN, (R) PRESIDENTIAL CANDIDATE: The thing I would say is, when you take the nine-nine-nine plan and turn it upside-down, I think the devil's in the details.

RICK SANTORUM, (R) PRESIDENTIAL CANDIDATE: How many people here are for a sales tax in New Hampshire? Raise your hand. There you go. That's how many votes you'll get in New Hampshire.

JON HUNTSMAN, (R) PRESIDENTIAL CANDIDATE: I thought it was the price of a pizza when I first heard it.

(LAUGHTER)

(END VIDEO CLIP)

ROMANS: There you go. Joining us now, analysis of the debate CNN contributors Hilary Rosen, John Avalon, Will Cain. Do you agree with the assessment that Romney came out solidifying the frontrunner status, and Herman Cain got friendly fire because he's rising in the polls?

HILARY ROSEN, CNN POLITICAL CONTRIBUTOR: Romney is in in respects so far ahead of them in the rhetoric and in the substance, that they need another foil, because Rick Perry is not turning into a very effective foil for Romney.

WILL CAIN, CNN CONTRIBUTOR: Romney has been trying to set up who his foils might be. He tried to give Bachmann a softball question last night. He's trying to prop up Herman Cain because he is so far ahead he needs a rival he knows he can beat.

ROMANS: Is Herman Cain running for president or a FOX News show? More than one pundit asked this question.

JOHN AVLON, CNN CONTRIBUTOR: This is an extended audition. Clearly, he could knock it out of the park. He is a great communicator. This support deepened and last night he proved he could take the heat at that top tier. The debate was all about nine-nine- nine. Folks who watched the debate know at least one candidate's economic plan. And that a big deal even if it's controversial.

ROSEN: Because the Republican party is really two parties, social conservatives and then there's sort of a moderate, more economically oriented guys. And the conservatives still don't like Romney and keep searching for this perfect alternative to Romney and that's why Cain is drawing that heat.

WILL CAIN: I don't think Herman Cain would solidify that support. I think the cracks are starting to show. The main problem, nine-nine-nine, it's bad. Nine-nine-nine is not a strong conservative policy.

ROMANS: Why isn't it a strong conservative policy? Liberals say it hurts the poor.

WILL CAIN: You cannot give the government a new taxing authority on the hope, on the whim you'll keep it at nine percent. Rick Santorum pointed it out perfectly, nine percent consumption, income, within several years it will be 20 percent.

ROSEN: We have lots of tax rates that no one pays in this country. That seems to be the whole point.

ROMANS: I want to talk a little about Romney's health care problem, or maybe it's not so much a problem anymore. Let's listen to this.

(BEGIN VIDEO CLIP)

RICK PERRY (R), PRESIDENTIAL CANDIDATE: Governor Romney, your Chief Economic Adviser Glenn Hubbard, who you know well, he said that Romneycare was Obamacare.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: We have less than one percent of our kids they're uninsured. You have a million kids uninsured in Texas.

(END VIDEO CLIP)

ROSEN: You know, Romney is clearly, last night, started the trend to play to the middle. He defended his vote on TARP. He's starting to be more aggressive in supporting his own health care activities.

The problem is that it's not going to stand up in the general election. It may end up getting people to think he's more practical in the primary, but in the general election, all of these to and fros and back and forths that he has done on all of these issues is not going to play well --

AVLON: Sure.

ROSEN: -- and he's not going to get away with it.

AVLON: Of course, they're going to try the flip-flop and there's Massachusetts precedent -- precedent for it. But, I think, you know, the interesting thing here is this is a major Achilles heel in the Republican Party and yet he's -- he's owning it, right?

Now, the question for I think the Republican Party moving forward is, can you have a nominee who backed the predecessor to Obamacare when that was the issue that galvanized and unite the movement? There's going to be a lot of actually party flip-flopping on this issue. But so far able he's been able to withstand those attacks and enjoying it in a relatively principle manner.

ROMANS: But I think like it's not -- it was such a hot thing for him, even a month ago, two months ago, and I feel as though it's kind of becoming less of a problem for him.

WILL CAIN: It is kind of shocking. It is, as John said, a major weakness in his campaign and it's shocking how little it comes up in his primary debates.

ROMANS: Right.

WILL CAIN: I have to say, he has thwarted it at every time it has come up. He has strongly handled that through answers of federalism, which a conservative concept, but that doesn't take it away. It's still is a problem but no one can seemingly attach it to him.

ROSEN: Well, it does drive one other point, though, which is really all the Republicans care about is defeating Barack Obama. Actually, the health care bill put 40 million people --

ROMANS: Right.

ROSEN: -- on the rolls and there are a lot of things about it that are good for the country. What I think was missing --

AVLON: Hilary for Romney. How about that?

ROSEN: -- last night -- what I think was missing last night was one fundamental point that nobody really talked about the current suffering in a way that's meaningful. And I do not think that Mitt Romney or any of these Republicans can afford to get away with spending the next year talking down the economy just to get rid of Barack Obama.

ROMANS: I saw that you tweeted that, too. You've been making that point.

It's interesting, because the Republicans want to occupy 1600 Pennsylvania Avenue.

AVLON: Sure.

ROMANS: And that's what the -- that's the occupying support that they're worried about right now.

ROSEN: The only thing they're focused on.

ROMANS: Let me ask you about Chris Christie and Mitt Romney. He endorsed Mitt Romney earlier today. This is kind of a coveted endorsement. Will it matter for him? Is it important?

CAIN: I think it matters among the establishment. I don't think it matters that much among the electorate. Look, I'm a big Chris Christie --

ROMANS: I know. I know.

CAIN: Chris Christie is authentic. He tells you things that might actually hurt his own electability. Seemingly the opposite of Romney.

AVLON: Right.

CAIN: So the endorsement does help in that respect.

AVLON: I agree. I think it's a big deal endorsement. It does solidify Romney's status as the frontrunner. And he does offer sort of an antidote. Look, I'm an authentic guy. This guy can't be all that bad.

And what we know now is also the field is set. Yesterday, Rudy Giuliani, my former boss, said he's not in the race.

ROMANS: Right.

AVLON: So Palin, you know, Rudy, all the folks who have been sort of keeping their door open, those doors are closed. These, with the people at the table last night, that is the Republican field. And so --

ROMANS: And it will start to narrow.

AVLON: And it will start to narrow. And, look, the reality is you have a frontrunner, who's still there's not a lot of enthusiasm for among some of the base of the Republican Party, evangelicals and Tea Party in particular. And that accounts for a lot of Herman Cain's surge. And last -- and he showed that he can -- he can play ball in that field.

ROMANS: If Romney -- if Romney keeps going, do we see an eventual vice presidential nominee in that ticket who is not on that field, do you think?

CAIN: Yes.

ROSEN: Yes.

ROMANS: Or somebody completely out of this group?

CAIN: Yes.

AVLON: I think you'd see a lot of pressure or at least a lot of talk about a Romney/Cain ticket. Now, we're -- these are all premature, guys. Remember, not a single vote --

ROMANS: I know. That's what's so fun about it. Come on.

AVLON: -- has been cast yet.

Yes. But, you know, just -- let's all keep it in perspective and an issue of fairness. What's shocking to me last night was Rick Perry who knew he needed a strong debate, who has that distinctive support from Tea Partiers and evangelicals slept through the debate. He's stumbled --

CAIN: Five minutes and Rick Perry's name comes up to the first --

ROMANS: I know. I know.

CAIN: That's a big deal.

ROMANS: I know, guys. It's so interesting. Hilary Rosen, John Avlon, Will Cain, thanks, you guys. Have a great morning.

AVLON: Thank you.

ROMANS: All right. That's it for us right now.

We're going to talk more about the Western Republican Presidential Debate in Las Vegas. Anderson Cooper will moderate. We're going to have that debate live next Tuesday, October 18th at 8:00 P.M., Eastern right here at CNN.

And our own Carol Costello is going to the debate. Carol gets to be there. She's going to have all the morning-after analysis.

COSTELLO: I can't wait.

VELSHI: I'm not Carol. I think the camera meant to be on Carol, but it's on me so I'll just handle this now.

It took hours for the situation in a prison in Western Oklahoma is finally under control this morning. A full-scale riot broke out at the prison yesterday. It started with fighting in several areas of the North Folk Correctional Facility in Sayre, Oklahoma.

Guards had to use tear gas to get things under control. Look at the situation there, at least 20 of the inmates were injured.

Hurricane Jova hitting Mexico right now. Rob Marciano is in the Extreme Weather Center for us right now. What's the situation with this hurricane, Rob?

ROB MARCIANO, AMS METEOROLOGIST: It is inland. It is weakening. It came onshore as a Category 2 storm with winds of 100 miles an hour. And the reports that we're getting out of Mexico, at least right now, not a -- not a disaster by any means. There's some damage to some homes and some businesses in some of the tourist towns from Manzanillo up to Puerto Vallarta and it's going to continue to weaken, north-ly moving at about nine miles an hour. There's still be a lot of rain with this thing and it will weaken fairly quickly.

Speaking of rain, we've got some across the Ohio River, through Pittsburgh, over the Allegheny and in through the northeast. And some of these will begin to increase throughout the day today and through tonight. It's going to be a pretty slow mover. But when it does come through New York and the Tri-State area, we could see significant rainfall here, especially tonight into tomorrow. A couple or three inches potentially.

And then behind this, there's another system with a potential for seeing severe thunderstorms across the Midwest today and those two systems could cause some delays, especially the northeast into Philly. More so tonight in D.C. and New York City, St. Louis, those additional thunderstorms.

But a mile ahead of us, 76 degrees in Chicago; 80 degrees in Memphis. Halloween right around the corner.

Maybe Carol could dress up as Ali for Halloween and Ali could dress up as Carol --

VELSHI: Carol could -- I mean, I could lend her the clothes. It'll be fine. She'd have to fill it out a little bit. I'm not sure me getting into Carol's clothes is going to be all that successful. People will wonder, why did you bring, like a -- like a tube top?

COSTELLO: You can wear leggings. That would be very attractive.

VELSHI: That would be as far as I can go with that, Rob.

ROMANS: This conversation is heading into silly town. Thank you, Rob Marciano.

VELSHI: I think what you meant, like, a bald wig and, you know, hair or something, right?

COSTELLO: A bald wig and somehow that seems counterintuitive.

VELSHI: Yes.

COSTELLO: Anyway, now is your chance to "Talk Back" on one of the big stories of the day. The question for you this morning, does Mitt Romney's changing position on health care matter to you?

The biggest thorn in Mitt Romney's side is Romneycare. That's what his opponents call the health care plan that Governor Romney created in Massachusetts. It turns out the Obama administration was entranced with Romney's plan, and according to NBC News, Obama officials met with Romney's advisers to create Obamacare. And, yes, both plans include a requirement to buy insurance.

As to what Romney says, yes, so?

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: The truth is, our plan is different, and the people of Massachusetts, if they don't like it, they get rid of it. Right now they favor it three to one.

But I'm not running for governor of Massachusetts. I'm running for president of the United States. And as president, I will repeal Obamacare, grant a waiver on that on day one to get that started and I'll make sure that we return to the states what we had when I was governor, the right to care for our poor in the way we thought best for our respective states.

(END VIDEO CLIP)

COSTELLO: Still it makes you wonder. Here's Governor Romney on FOX News the day he signed that Massachusetts Healthcare Law.

(BEGIN VIDEO CLIP)

ROMNEY: But when I set out to find a way to get everybody health insurance, I couldn't have cared less and I don't care less about how it works politically. In my view, it's the right thing to do. It's a key issue that faces many, many people across this country that don't have health insurance, we need to find a way to get them insurance so they get better care and they cost us less money.

(END VIDEO CLIP)

COSTELLO: So Mitt Romney was for the individual mandate before he was against it, at least on a national level, and he says as president, he will repeal the very health care law that he inspired.

So our "Talk Back" question today, does Romney's changing position on health care matter to you? Facebook.com/AmericanMorning, Facebook.com/AmericanMorning. I'll read your comments later this hour.

VELSHI: All right. Coming up, I'm going to talk to you about a challenge that was put out there to help clean up an oil spill. It was done in the wake of that -- that massive oil spill last year. When we come back, you're going to meet the inventor who found a better way to get the oil out of the water.

(COMMERCIAL BREAK)

VELSHI: Twenty-seven minutes after the hour. Welcome back. We're "Minding Your Business" this morning.

Right now, U.S. stock futures are sharply higher ahead of the opening bell. European markets are up, too, after some stronger than expected manufacturing data surprised investors over in Europe. However, just a few minutes ago, the United Auto Workers Union announced it has reached a tentative agreement in contract negotiations with Chrysler. Chrysler has agreed to create 2,100 new jobs by 2015, that's part of the agreement.

Pepsi just reported that it missed third quarter earnings expectations, but that revenues were up for the quarter. A lot of weight on this report as Pepsi doesn't just make Pepsi. It's also the parent company of Frito Lay, Tropicana, Gatorade and Quaker Oats.

This morning, OPEC is out with a new warning saying world oil demand is down even further due to slowing growth in the global economy. This is the fourth month in a row that OPEC has cut its forecast for oil demand. Today we'll get a look at the minutes from the Federal Reserve's meeting on interest rates back in September. Investors will be sorting through those pages for any hints about future plans that the Fed may have to boost the economy.

And finally, it's happened. The number of wireless subscribers out there outnumbers the U.S. population. This is according to a study by a group that tracks wireless data and the study also shows that there was 111 percent increase in wireless data traffic in the first six months of this year.

AMERICAN MORNING will be right back after the break.

(COMMERCIAL BREAK)

COSTELLO: It's 30 minutes past the hour. Time for this morning's top stories, the United States announcing it's foiled a terror plot, accusing Iran of conspiring with the Mexican drug trafficker to assassinate a Saudi ambassador on American soil.

U.S. air travelers are being warned to stay alert for possible attacks. The Iranian President Mahmoud Ahmadinejad calling the charges a fabrication.

ROMANS: Six explosions have rocked Baghdad this morning killing nearly two dozen people. At least two of the attacks targeting Iraqi police station. Another roadside bomb went off near the Interior Ministry. At least 70 people are being treated for injuries. So far no one has claimed responsibility for the violence.

VELSHI: President Obama says he now plans to break up his jobs plan into a series of smaller bills that will be introduced individually. Yesterday, the $474 billion package failed to pass the Senate.

COSTELLO: And businessman, Herman Cain has seen his political fortunes rise. He is now number two in the Republican presidential ranks. So during last night's debate, Cain was taking fire from behind with GOP rivals ridiculing his 999 tax proposal.

(BEGIN VIDEO CLIP)

JON HUNTSMAN (R), PRESIDENTIAL CANDIDATE: I think it's a catchy phrase. In fact, I thought it was the price of a pizza when I first heard it.

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: The 999 will pass, and it is not the price of a pizza, because it has been well studied and well developed.

REPRESENTATIVE MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: One thing I would say, when you take the 999 plan and you turn it upside down, I think the devil's in the details.

CAIN: Thank you.

(END VIDEO CLIP)

COSTELLO: Cain says his 999 plan is a bold solution. Not a political solution.

ROMANS: It is day 11 now of the manslaughter trial of Michael Jackson's doctor, Conrad Murray. The prosecution's case is winding down. The state could rest by the end of the week. Meantime, you know, another emotional day in court yesterday, and our Ted Rowlands was there.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): For the first time jurors heard the story of what happened in the hours before Michael Jackson died directly from the doctor blamed for his death.

In a two-hour interview recorded by police, Dr. Conrad Murray recounted a sleepless night for Jackson who was desperately looking for rest in order to prepare for his upcoming tour.

CONRAD MURRAY, ACCUSED OF INVOLUNTARY MANSLAUGHTER: He was wide awake. And then he complained. I've got to sleep, Dr. Conrad. I have rehearsals to perform. I must be ready for the show in England. Tomorrow, I will have to cancel my performance. I'll have to cancel my trip because, you know, I cannot function if I don't get the sleep.

ROWLANDS: Murray says he gave Jackson a series of sedatives, but nothing worked. Finally at 10:40 a.m., he says he gave in to Jackson's pleas and administered 25 milligrams of Propofol, which Jackson referred to as his milk.

MURRAY: I then decided to go ahead and give him some of the milk so he could get a couple of hours sleep so that he could produce because I cared about him. I did not want him to fail. I had no intentions of hurting him.

ROWLANDS: But Murray's timeline of what happened next is under dispute by the prosecution.

MURRAY: I monitored. I sat there and watch him for long enough period that I felt comfortable. Then I needed to go to the bathroom. So I got up, went to the bathroom. Then I came back to his bedside and was stunned in the sense that he wasn't breathing.

I was gone, I would say, about two minutes. His body was warm. There was no change in color. So I assumed that everything happened very quickly, just about the time I was gone, within that time and coming back.

ROWLANDS: Murray says he was away from Jackson for only two minutes, but phone records show Murray spent 45 minutes on his cell phone before he discovered that Jackson had stopped breathing. Still, the audio tape may work in Murray's favor. The jury heard Murray say repeatedly that he loved Jackson and wanted to help him.

MURRAY: Mr. Jackson was my friend. I loved him. Michael Jackson may have had a dependency to substance. I was trying to wean him off.

ROWLANDS: Murray also talked about consoling Jackson's daughter, Paris, at the hospital.

MURRAY: I said I tried my best. And she said, I know that, Dr. Murray. I know you tried your best. I know you tried your best, but I'm really sad. You know, I will wake up in the morning and I won't see my daddy. I was very sad.

(END VIDEOTAPE)

ROWLANDS: The audio tape may be the only chance the jury has to hear Murray's story as it's not expected that he'll take the stand in his own defense. Ted Rowlands, CNN, Los Angeles.

ROMANS: For complete coverage and analysis of the developments in the Michael Jackson death trial, you can check out our sister network, HLN.

VELSHI: Well, you may remember him as random task. One of Dr. Evil's henchmen in the first "Austin Powers'" film, now 40-year-old Joseph Son is suspected of killing his cellmate at a California prison. Son had just been sentenced to life for torturing and raping a woman back in 1990.

COSTELLO: Still no sign of a 10-month-old girl who disappeared mere more than a week ago in Kansas City. Lisa Erwin's parents have now hired a private investigator to help with the search.

They told police that Lisa was taken while asleep in her crib. The latest search effort focused on an abandon house near their home, but no evidence has turned up.

ROMANS: U.S. Attorney General Eric Holder says he will comply with subpoenas when they are issued by the congressional committee investigating "Operation Fast and Furious."

That operation was supposed to trace how U.S. guns got into the hands of Mexican drug cartels, but it failed after some of the guns allowed to go south of the border started turning up at murder scenes in both countries.

VELSHI: Take Rudy Giuliani off the list of potential Republican candidates for president. The former New York City mayor speaking at a luncheon on Long Island yesterday said simply, it's too late for me.

He also analyzed the race between two Republican frontrunners say Rick Perry has the hearts of Republican voters while Mitt Romney has their heads.

COSTELLO: Calling it an easy decision to make, New Jersey Governor Chris Christie endorsed Mitt Romney to be the Republican nominee for president. Most analysts agreeing now that Romney is beginning to solidify his role as the GOP frontrunner for president.

ROMANS: And so the very first time Romney is responding to last week's comments by a Dallas pastor who labeled his Mormon faith a cult.

After receiving Christie's endorsement, Romney chose not to attack Reverend Robert Jeffress directly instead he put the ball in Rick Perry's court challenging the Texas governor to condemn those comments.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Governor Perry selected an individual to introduce him who then used religion as a basis for which he said he would endorse Governor Perry and a reason to not support me.

Governor Perry then said that introduction just hit it out of the park. I just don't believe that divisiveness based upon religion has a place in this country and I would call upon Governor Perry to repudiate the sentiment and the remarks made by that pastor.

(END VIDEO CLIP)

ROMANS: Perry through a spokesman is refusing to disavow that pastor.

VELSHI: Up next, an Illinois inventor just won a worldwide contest to see who could create the best new device to clean up the oil spill? You'll meet the man and his machine. It's 38 minutes after the hour.

(COMMERCIAL BREAK)

VELSHI: Welcome back to AMERICAN MORNING. In the summer of 2010, on the heels of the disastrous BP oil spill in the Gulf of Mexico, an idea was hatched.

Wendy Schmidt, the wife of Google CEO Eric Schmidt and Peter Diamandis with me today of the Ex-Prize Foundation decided to challenge scientists and engineers around the world to come up with a better way to clean crude oil off an ocean surface.

Over 350 submissions, later 10 finalists, later we have a winner. We are joined this morning by Peter Diamandis, he's with the X-Price Foundation and the inventor who won top honors at the Wendy Schmidt "Oil Clean Up X-Challenge," Donnie Wilson. Congratulations to you, Donny. Thank you for being here.

DONNY WILSON: Good to be here.

VELSHI: Peter, let's just go back to how this started. You were looking at the same things we were looking at. I went down there right up to that fire last year and it's nothing I'd ever seen before.

After all of these years of reporting, I had just never seen something like that. This oil that continues to come out and this fire that kept burning. We knew eventually it would be capped, but everybody in the world was worried about this, and so what did you do? PETER DIAMANDIS, CHAIRMAN AND CEO, X-PRIZE FOUNDATION: We at the X-Prize Foundation were looking for place where is there are market failures that we can have literally a competition, re-invent how we do things.

James Cameron, Board of Trustees, Francis Beurant who is our prize development was looking at what do we do in this area, and Jim and Francis said, can we re-invent how we actually clean up oil?

Because the technology hasn't changed in 20 years since Exxon Valdez and we put out this challenge literally to say do it at least twice as good as the industry standard and the results have been spectacular.

VELSHI: So what were the -- so the idea of the X-Prize is that teams compete for a certain amount of money or an X-challenge in this case. It was $1 million for the first prize. But the number of teams that compete to do that generates a lot more research than $1 million?

DIAMANDIS: So if you invest $1 million, you might invest in the right team. Here we put out a challenge saying, listen, if you hit this goal, which is really hard, really audacious then you win. And we literally attracted 350 pre-registered teams that have driven ten amazing finalists and one incredible winner.

VELSHI: So what was the goal?

DIAMANDIS: So the goal was the industry had been cleaning up an 1,100 gallons per minute, 1,100 gallons of oil per minute. At least to win you have to do at least 2,500, at least 2.5 times better than the existing industry standards.

VELSHI: OK.

DIAMANDIS: So what happened is nothing short of spectacular.

VELSHI: So Donnie, you guys were involved in the oil spill last year? What were you doing?

DONNIE WILSON, WINNER, WENDY SCHMIDT OIL CLEANUP X CHALLENGE: Yes. We were running the burn program for BP so we had a fire resistant containment and we can burn large volumes of oil offshore.

VELSHI: And just to explain to people what that is, the boom contains a bunch of oil, pools it, you light that on fire. You burn it off. It was the most effective way we had.

WILSON: That's correct.

VELSHI: So you needed to beat 2,500 gallons per minute. What did you come up with in the end?

WILSON: Well, we ended up with a group technology. Something we had on the drawing board and of course with this contest, you had to bring your best game to the table. And we achieved that, and much more so we are at over 4,000 gallons a minute. VELSHI: Over 4,000 gallons of oil per minute when the industry standard had been 1,100.

DIAMANDIS: They basically quadrupled the rate at which to clean up oil on the Gulf, which was amazing.

VELSHI: So what does this do for you and your team and the world of oil spills?

WILSON: Well, what it does is, it brings attention to the problem. So that's going to give us an opportunity to market the product in more places in the world.

VELSHI: As you said yesterday, I heard you saying, three years ago you couldn't have sold this product?

WILSON: Well, the problem is that legitimacy, if we'd have went and done this ourselves, not sure everyone would believe what we had.

VELSHI: Right.

WILSON: That with being involved here and the certification, we were able to prove that we have this technology and take it to the marketplace.

VELSHI: And this -- the testing, Peter, just explain. This was done in New Jersey. You did six tests for each entrant, three of them in calm water, three of them in waves. And then you took the average of all of the different to determine the score?

DIAMANDIS: Yes. So in addition to the $1 million, what the teams actually get is a global stage to demonstrate they're abilities. An amazing set of judging that came from U.S. government agencies, the industry, that looked at this technology and, in the world's largest test facility, called Omset (ph), they had a chance to show their stuff. And really we have in addition to Wendy Schmidt, an amazing benefactor, supporting us.

VELSHI: Yes.

DIAMANDIS: Shell also came in and said we're going to help take this winning technology to the marketplace. Hopefully, next time there's a spill, and there will be a next spill, we can clean it up faster before the oil hits the shore and causes environmental damage.

VELSHI: Tell me -- just because you've been involved in big things in the past, the Ansari (ph) X Prize, which was about a rocket ship. You've got something going to the moon. The X Prize gave birth to the commercial space industry. But this is a smaller one. This challenge was a smaller, quicker turn around one?

DIAMANDIS: Yes, Ali, you're right. We've typically been doing these $10 million to $30 million, five to eight-year competitions. What we're realizing is $1 million competitions that really take a year to actually compete and be won, really can drive innovation. And the access that small teams have to incredible technology, really exponentially growing technologies, new materials, A.I., robotics, allows them to innovate at such an incredible rate. So we're going to be looking at doing these million-dollar competitions in the areas of housing, water, energy, or other areas that really help improve our world as a very fast rate.

VELSHI: Yes, it's incredible.

Donnie, I have to tell you, all we hear about -- you competed against global teams. They were from all over the world.

WILSON: Correct.

VELSHI: How do you feel about this whole idea that American ingenuity is dead?

WILSON: It's not dead. The X Prize is part of the American ingenuity, so we're thrilled. We had great competitors. They all brought their best game. We were fortunate enough to bring our best game and really push the envelope here.

DIAMANDIS: Donnie, you blew it away.

WILSON: Thank you.

DIAMANDIS: You even surprised yourself, didn't you?

WILSON: We did, yes.

VELSHI: You didn't think you were get anywhere near this 4,000 --

(CROSSTALK)

WILSON: Well, we knew we were in the range.

VELSHI: Yes.

WILSON: But you never know until you actually do it, and --

VELSHI: Right. Well, it's going to make the world a better place.

Donnie, thanks very much --

WILSON: Thank you.

VELSHI: -- for coming in, doing that kind of work.

And, Peter, thanks very much for just inventing these ideas, these contests that people can compete, you know, in.

DIAMANDIS: Can't wait to show you our next one.

(CROSSTALK)

(LAUGHTER) VELSHI: All right.

Carol?

ROMANS: And we can't wait to the see what the next one is. That's awesome.

COSTELLO: Absolutely.

Morning headlines coming your way next. Also ahead in our "A.M. House Call," it may one of the weirdest possibly consequences of sex, amnesia. Not kidding. We'll explain.

ROMANS: Carol, I can't wait to hear you tell me about that.

COSTELLO: Right.

ROMANS: Today's "Romans' Numeral" is 61. Here's a hint. This word was said 61 times during last night's Republican presidential debate. Think about that. What word do you think it was?

Forty-eight minutes after the hour.

(COMMERCIAL BREAK)

COSTELLO: Forty-nine past the hour. Here are your morning headlines.

U.S. stock futures trading sharply higher this morning. Investors remaining optimistic Europe will contain its debt crisis.

President Obama says he now plans to break up his jobs plan into a series of smaller bills that will be introduced individually. Yesterday, his $474 billion package failed to pass the Senate.

Armed with his endorsement from Chris Christie, Mitt Romney looked very much like the frontrunner at last night's Republican presidential debate. The party's number two, Herman Cain, came under attack for his 9-9-9 tax overhaul plan.

The United States says it spoiled a terror plot engineered by Iran. That man is in custody. He is Manssor Arbabsiar, a 56-year-old U.S. citizen who also holds an Iranian passport. The Justice Department accusing Tehran of conspiring with Mexican drug traffickers to assassinate a Saudi ambassador on American soil. Iran's president calling the charges a fabrication.

A Connecticut jury expected to begin deliberations today in a deadly home invasion trial. This man is accused of masterminding that crime that led to the deaths of Jennifer Hawke-Petit and her two daughters in 2007. His alleged accomplice was sentenced to death last year.

The San Francisco Giants' fan who was nearly beaten to death outside Dodger's Stadium back in March has been released from the hospital. Doctors say Bryan Stow has shown tremendous improvement. He'll continue his recovery at an undisclosed rehabilitation center.

That's the news you need to know to start your day. AMERICAN MORNING, back after a break.

(COMMERCIAL BREAK)

ROMANS: I have to (INAUDIBLE).

(LAUGHTER)

VELSHI: We having a little (INAUDIBLE) this morning.

ROMANS: I know. He's just bugging me like a brother.

New York City, cloudy, 60 degrees. 62 and showers later.

You bugged your sister, didn't you?

VELSHI: Oh, yes.

(LAUGHTER)

ROMANS: Oh, I know your sister and you did bug your sister.

VELSHI: Why am I wearing this badge?

ROMANS: I'm not quite sure either.

All right, this morning's "Romans' Numeral," a number in the news today. The number is 61. It's the number of times a word appeared last night.

What do you think it was, Ali?

VELSHI: Economy?

ROMANS: No. It was jobs, 61 times.

VELSHI: Oh, OK.

ROMANS: Critics would say there are no new movements in all those utterances of the word "jobs" --

VELSHI: Right, which was said a lot.

ROMANS: -- to actually get new jobs going. And there's no new movement overall to have any new spending in the economy for jobs to be created this year because the president's jobs plan was defeated yesterday in the Senate.

VELSHI: Right.

ROMANS: But, oh, we are talking about jobs, how to create them, and who is to blame for not having them. Good question.

VELSHI: We do that a lot. ROMANS: Yes.

VELSHI: All right, "A.M. House Call" now. Men may want to think twice before they pop a Vitamin E. A new study found high doses of the supplement, vitamin might increase a man's risk for prostate cancer. Researchers at the Cleveland Clinic say they were taking a second look at a 2008 study about the link between Vitamin E and prostate cancer, and what they found was, of the 35,000 men taking part in that study, big study, those taking the vitamin saw a 17 percent increase in prostate cancer.

OK, now, keep this in mind next time you're heading for the bedroom. Sex could make you forgetful. According to researchers, it's a rare condition where a person's memory suddenly disappears after sex.

COSTELLO: Wait. This happens more in men than women?

VELSHI: I'm not sure.

(LAUGHTER)

VELSHI: They -- we're not sure why it happens either. But people with what is called transient global amnesia suffer no side effects. Their memory usually returns in a few hours.

(LAUGHTER)

ROMANS: I don't even know what that means.

VELSHI: What you don't know what means?

COSTELLO: I don't even want to comment.

ROMANS: The whole story is just --

(CROSSTALK)

VELSHI: Which story? I forgot.

(LAUGHTER)

COSTELLO: OK. Let's get back to our "Talk Back" question. The question you asked this morning, does Romney's changing position on health care matter to you?

This from Jerry, "Not at all. What he did was for the people of Massachusetts. It had no effect on the other 49 states. If the other governors had done something for their states, we would have never had Obama-care."

This from Laura, "Yes, Romney's change in position upsets me very much. I was proud when he enacted it and stood by it. Now that he's not owning his own belief, it just indicates that he will kowtow to the base and not do what he believes to be right. Why elect just another base jumper"? This from Mike, "It absolutely matters. Romney is a moderate man politically, and I respect that. What I don't respect is that he has no backbone. He changes his mind when it is politically advantageous, such as on social issues and health care. How can a man claim to be a leader if his only core American value is a desire to win"?

This from Todd, "Romney is a businessman. Changing is what business people do. They adjust, they tweak, they shuffle until whatever it is they are doing is successful. Isn't a failure someone who keeps doing the same things over and over that are not working, and then wonders why they are going nowhere?

VELSHI: Good point.

COSTELLO: Yes.

So keep the comments coming, Facebook.com/americanmorning.

ROMANS: But the people who say that the president's health care plan was invented by Mitt Romney, Democrats have been pushing for health -- health --

(CROSSTALK)

ROMANS: Right -- way before Mitt Romney was the governor of Massachusetts.

VELSHI: Right.

COSTELLO: Well, I think what they're talking about was that some of the advisors on Romney's health care plan in Massachusetts consulted with --

ROMANS: Right.

VELSHI: Right.

COSTELLO: -- the Obama administration and they came up with what opponents call Obama-care. So that's what they're talking about, that it -- that Romney's plan inspired Obama-care --

ROMANS: Or at least guided it.

COSTELLO: Or at least guided it, right.

ROMANS: There you go.

VELSHI: I'm going to leave you guys.

ROMANS: Why?

VELSHI: "Fortune" magazine is having a --

ROMANS: Oh, that's right.

VELSHI: -- a discussion with the CEO of Citigroup, Vikram Pandit, so I'm going to go over there. My friend, Andy Serwars' (ph) moderating it, so I'm going to down to the "Time Life" building and just listen in. We're all very concerned about banks and their state but --

(CROSSTALK)

ROMANS: And fees.

VELSHI: And fees, yes.

ROMANS: I'd be interested to see what he thinks about the backlash against fees.

VELSHI: So we'll talk about that. And I'll let you know what we learn.

COSTELLO: OK, great. Have a nice breakfast, Ali.

ROMANS: Bye.

(LAUGHTER)

Top stories when we return, including, are the candidates right? We're fact checking last night's Republican debate.

And here's an interesting issue. President Obama got to the Oval Office, but is the GOP ready to nominate a black presidential candidate? It's all ahead.

Fifty-seven minutes after the hour.

(COMMERCIAL BREAK)