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Syracuse Fires Coach Amid Sex Scandal; The Feds' Secret Loans to Banks; Stocks Surge on Wall Street; Barney Frank Won't Run for Reelection; Seattle "Superhero" Avoids Charges; Coach's Wife: "I Know Everything" Police Investigate "Craigslist Killing"

Aired November 28, 2011 - 10:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: And it's the top of the hour. Thanks for joining us this morning.

We begin with the firing of Syracuse assistant basketball coach, Bernie Fine. A third man comes forward and accuses Fine of molesting him nine years ago.

And a decade-old recording of Fine's wife suggesting she not only knew about the alleged sexual abuse, but allowed it to go on has surfaced.

CNN's Deb Feyerick live in Syracuse with more. We're going to actually hear the tapes -- Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Yes, well, Kyra, you know, I'll tell you this tape was the real game changer because up until that point there were a lot of allegations by a single accuser and his stepbrother.

But once that tape was made public the chancellor had no other choice, but to fire Bernie Fine. Take a listen. It is graphic and it is disturbing.

(BEGIN VIDEO CLIP)

MICHAEL COHEN, SPORTS EDITOR, "THE DAILY ORANGE": Every single one we talked to would defend Coach Fine and not a single one gave us even the slightest bit of an impression that these were true allegations.

This is coming from former players, coaches and people he worked close with. So it seemed like the Syracuse basketball community was very much in defense of Coach Fine.

(END VIDEO CLIP)

FEYERICK: And that was the sports editor of the local paper here on campus. There was really a strong reversal by the top coach here, Jim Boeheim who said last night that he was sorry if he was insensitive to any of the victims because in the beginning, he had come out very strongly supporting his friend and his fellow coach and somebody who lives across the street from him.

But yesterday he did apologize and really a lot of people on this campus thought that Bernie Fine was innocent. They simply could not reconcile the two descriptions of this man, somebody who was revered here as a coach, who has been one of the key people recruiting and developing some of the top basketball players in the country.

And then these allegations which surfaced, but the accuser, one of two, came forward saying that, in fact, this molestation had gone on for more than a decade. A third man over the weekend stepped forward saying he, too, had an encounter with Bernie Fine.

It was shorter. It was not 10 years long, however, he says it did occur. One caveat on that, the guy's father thinks the guy is lying. So there are lots of bits and pieces of information coming out now. Police have launched a very active and aggressive investigation.

Federal authorities seized some documents and computer files as well as paper files from Bernie Fine's home on Friday so they're really looking into this. But one thing you have to keep in mind, Kyra, that is that police never investigated the initial charges back in 2002 simply because the accuser, Bobby Davis, placed a phone call.

Never came in to speak to them in person so when police told him statute of limitations ran out, he took a different tact, which was recording the conversation with the wife and then making that conversation available to ESPN Sports Channel as well as local paper here -- Kyra.

PHILLIPS: The recordings are definitely disturbing. Deb, thanks so much. In just about 10 minutes, you are actually going to hear that taped conversation between Fine, accuser Bobby Davis, and Fine's wife, Laurie.

We're also going to talk with NPR sports correspondent Mike Peska about any possible fallout for the Syracuse basketball program.

Now the biggest bailout in U.S. history. It was your taxpayer money, but you never even knew about it. The Federal Reserve and big banks managed to keep it secret until the Bloomberg News Agency managed to pry loose thousands of documents.

Christine Romans has been pouring through those and has analysis for us. Christine, we're talking trillions of dollars, right?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: We, you know -- we've known the largest bailout in American history is not the $700 hundred billion TARP bailout. All along, we've known that the fed was giving loans, secret loans to the big banks during the height of the financial crisis.

But what we didn't know is to whom, how much, what days were the biggest loans. Now because of a freedom of information request, and all of these data was made available. Thanks to Bloomberg News would really push for it.

Bloomberg has done more analysis and found that actually these biggest banks got $13 billion in interest from these loans even though these loans were all paid back to the government in the end. This was really a big boon to the biggest banks who then turned around and lobbied against having more stringent regulations to prevent another financial crisis.

So this is what it looks like. It looks like $7.7 trillion in loans. Remember TARP was at estimated $700 billion. The biggest recipients were JP Morgan, Bank of America, Citigroup, Wells Fargo, Morgan Stanley, and all of the big names you've known. There were recipients from foreign banks as well in all 190 different banks.

Defenders of the fed will say this. They'll say that the reason the fed wanted to keep all of this secret is because at the height of the crisis, Kyra, in 2008, if investors had known which banks were going and getting very super low interest loans, secret emergency loans from the fed, that the market would have taken those down.

There would have been a run on those banks. They had to go borrow money to keep the economy going. The fed did its job. In hindsight many are saying the banks enjoyed largess from the fed and the American taxpayer, and Congress and then turned around and lobbied very, very strongly not to have more oversight and restrictions against it.

PHILLIPS: And it's pretty disturbing to think that, you know, this rescue may leave the nation's financial system even more at risk for a collapse.

ROMANS: Because those banks got bigger and bigger, actually, because of the largess of the fed who was able to keep them going with these very low interest loans that they actually were able to profit over. They did get bigger, you're right.

PHILLIPS: Christine Romans, thanks very much.

In just about 35 minutes into the new trading day stocks are soaring on Wall Street. That's good news. Investors are showing new optimism with the debt crisis in Europe and record breaking retail sales in the U.S. over the holiday weekend.

Karina Hubert is at the New York Stock Exchange. So, Karina, what are you seeing and still good news. We're up more than 300 points.

KARINA HUBERT, CNN BUSINESS CORRESPONDENT: Exactly, we are off to a roaring start this morning. You were talking about the financials. It really is the bank stocks that are doing well today. They're up by between 4 percent and 6 percent.

Also, we're seeing online retailers like Amazon and eBay are really popping today. That's, of course, ahead of Cyber Monday. Experts believe sales will top $1 billion today. Good news for them. Now why are the markets taking off today after tanking just last week?

A couple of reasons, first, of course, we have the record breaking retail sales we saw over the weekend. This is interesting. More than half of all Americans hit the stores and went shopping online this weekend. They were spending more money this year per person than they did last year. Another reason today that we're seeing some nice gains is because of Europe. That has been the market driver of late.

This is on news that France and Germany are trying to step in with a new plan to stop the debt crisis from spreading. That is certainly helping matters today. It's helping ease the pressure on Spanish and Italian bonds giving a nice lift to euro penal markets. The markets in France and Germany are up by 3.5 percent.

Here in the U.S. the major indices are also trading hard by about 3 percent so a nice day today on Wall Street.

PHILLIPS: Karina, thanks. Well this morning we have big news from Capitol Hill. Massachusetts Congressman Barney Frank announcing he will not seek re-election next year. The iconic Democrat has held the office for remarkable 16 terms.

That's 32 years, but not without controversy. Senior political editor Mark Preston is in Washington with more details on his legacy. Mark, you spent a lot of time covering Barney Frank.

MARK PRESTON, CNN SENIOR POLITICAL DIRECTOR: I certainly did, Kyra. You know, I have to tell you, I was just on the phone with several people up in Massachusetts and shock waves right now, the fact that Barney Frank has decided to retire after serving 16 terms in the House.

Now he will not seek re-election. For Democrats, this is Massachusetts after all. It's very likely they will keep hold of his seat. The fact of the matter is he has been a titan when it comes to financial services on Capitol Hill.

He was the chairman of the financial services when Democrats held the majority and he still has been a very strong voice for Democratic ideals and what have you on Capitol Hill.

But he did have controversy as well. He was considered to be one of the best debaters in Congress who did not want to get on the loor, Kyra, and get into an argument with him. I have to tell, as a reporter I was working for some Massachusetts newspapers at the time of President Clinton's impeachment.

I remember asking Congressman Frank a question, which he didn't like and he tore me apart. Afterwards I sulked away. It took a few other reporters to come up to me and say, look, you have arrived. This is when I was a young reporter.

If you get torn apart by Barney Frank, it means you have arrived. So he was a tough person to deal with on Capitol Hill whether you were a Republican, reporter or even a Democrat that he disagreed with -- Kyra.

PHILLIPS: I think he respected you more when you were tough. You as a young reporter also asked tough questions, Mark. You have to hold politicians accountable.

PRESTON: Yes, you do, but I have to tell you, Barney Frank was one of these people who was always the smartest person in the room. That was one of the strengths on Capitol Hill. He could always go toe to toe with Republicans.

He was abrasive. Now what's interesting about Barney Frank is that back in 1987 he came out and acknowledged that he was gay, which was a big deal at the time. He went on to wear this as a badge of honor on his sleeve.

And probably helped many other folks who were in the closet and didn't want to talk about their sexuality to come out so Barney Frank has done a lot to promote Democratic ideals, but he also did a lot, actually, for the gay community -- Kyra.

PHILLIPS: Point well made. Mark, thanks so much.

Tape recordings suggesting Bernie Fine's wife knew about her husband's alleged sexual abuse. You're going to hear that tape next.

(COMMERCIAL BREAK)

WHITFIELD: Checking news across country now. "Occupy" protesters in Los Angeles have defied a deadline to leave their camp outside of city hall. The "Los Angeles Times" say the police withdrew after reopening a nearby street.

Also in California, dramatic rescue on I-10, just east of Los Angeles. A dozen bystanders lifted this pickup truck that rolled over. They pulled a woman passenger to safety. The driver was killed.

Prosecutors in Seattle deciding not to file charges against a man who calls himself the mass crusader. Phoenix Jones is among a group of self-proclaimed a super hero who patrols streets against crime. He was arrested for pepper spraying a man who he says was a stabbing suspect.

Now to the sex scandal at Syracuse University. Assistant basketball coach, Bernie Fine has been fired. A third adult has come forward alleging that Fine molested him years ago, and one of fine's other accusers, Bobby Davis, has given ESPN a recording of a phone conversation that he taped with Fine's wife, Laurie, in 2002.

You're going to hear some of that now. We warn you, the subject matter is pretty graphic and disturbing. The tape aired on ESPN's "Outside the Lines."

(BEGIN VIDEOTAPE)

MARK SCHWARZ, ESPN (voice-over): Bobby Davis says he knew of one person who could validate that he was being sexually abused by Bernie Fine. That person was Fine's wife, Laurie Fine.

FINE: Hello.

DAVIS: Laurie?

FINE: Yes.

DAVIS: How are you doing? It's Bobby.

FINE: Hi, Bobby, how are you?

SCHWARZ: Davis says that in October of 2002, he recorded a phone conversation of Laurie Fine without her knowledge. A legal act based on the location of both parties.

During the call, Fine seen here in hidden camera video from 2003 discussed the alleged sexual molestation of Davis by her husband, Syracuse associate head basketball coach, Bernie Fine.

FINE: What did he want you to do? You can be honest with me.

DAVIS: So, what do you think? What he always does.

FINE: What? He wants you to grab him?

DAVIS: No, he's - he's trying to make me - no, he'd try to make me grab him. I mean, he's like but at first, he would grab me and start, you know, touching me.

FINE: But you never had any oral sex with him?

DAVIS: No.

FINE: No.

DAVIS: He - he -- I think he would want to, but --

FINE: Of course, he would.

SCHWARZ: After bringing his allegations against Bernie Fine to a Syracuse police detective in 2002 and getting nowhere, Davis said he was determined to confirm his story.

He says he hoped Laurie Fine would disclose on tape the details of her own knowledge of the abuse he says started when he was 12 and continued for more than a decade. So what were you hoping to accomplish by recording it?

BOBBY DAVIS, ALLEGED SEXUAL MOLESTATION VICTIM: Laurie was a person I talked to about the situation as I got older. She was there a lot of the times, seen a lot of things that were going on, you know, when Bernie would come down the basement in his house at night, when I was laying down there.

She had to see him every night do that. But Laurie was the only one else that knew about what was going on and you know, saw things that were happening with her own eyes and that we talked about it.

FINE: I know everything that went on, you know, I know everything that went on with him. Bernie has issues, maybe that he is not aware of it, but he has issues. And you trusted somebody you shouldn't have.

DAVIS: Yes.

FINE: Bernie is also in denial. I think that he did the things he did, but he's somehow through his own mental telepathy has erased them but out of his mind.

SCHWARZ: Davis who periodically stayed here at the Fine's former home beginning in the 7th grade and at one point had his own room in their basement says Laurie Fine told him she was aware that her husband was sexually abusing him.

DAVIS: Do you think I'm the only one he's ever done that to?

FINE: No. I - I think there might have been others, but it was geared to, there was something about you.

DAVIS: Yes, that's what I'm wondering. Like it's - like I'm wondering why I was like the worst one.

FINE: I don't know.

DAVIS: One time she talked about an instance she saw him through the basement window and left like the blinds open a little one night, and watched through the window.

SCHWARZ: What did she see?

DAVIS: Bernie grabbing me, touching me, and she said the next day, we got to do something, this is when I was a little older, a junior in high school. Got to step up to it, say something, you have to be a man.

SCHWARZ: During the phone call, Davis explained to Laurie Fine that when he was about 27 years old in the late '90s, he asked Bernie Fine for $5,000 to help pay off some student loans.

FINE: When he gave you the money, what does he want for that? He wants you to grab him or he wanted to do you?

DAVIS: He wanted to do me. He wanted me to touch him too. He tried to make me touch him a couple of times. He grabbed my hand and then I'd pull away, and then put me in your bed. And then you know, put me down, and I'd try to go away and he's put his arm on top of my chest. He goes, "If you want the money, you'll stay right.

FINE: Right, right. He just has a nasty attitude because he didn't get his money nor did he get what he wanted. He didn't get --

DAVIS: It's not about the money.

FINE: It's about the (inaudible). I know that. So you're - I'm just telling you for your own good. You're better off staying away from him.

SCHWARZ: During the call, Laurie Fine suggested to Davis what her husband should do with his need for male companionship.

FINE: You know what, go to a place where there are gay boys. Find yourself a gay boy, you know, get your rocks off, have it be over with.

DAVIS: Yes, but -

FINE: You know, he needs - that male companionship that I can't give him nor is he interested in me, and vice versa.

SCHWARZ: At one point, Laurie Fine seems to say her husband was not the only adult in the fine household who betrayed Davis' trust.

(END VIDEOTAPE)

PHILLIPS: Part two of Mark Schwarz's ESPN special coming up right after the break.

(COMMERCIAL BREAK)

PHILLIPS: More now from that secret recording between Bernie Fine's wife and the man who says the Syracuse assistant basketball coach sexually abused him. Again, we warn you that the conversation is graphic and disturbing. Here's ESPN's Mark Schwarz.

(BEGIN VIDEOTAPE)

SCHWARZ: At one point, Laurie Fine seems to say her husband was not the only adult in the Fine household who betrayed Davis' trust.

FINE: The issue at hand is that he has no business doing what he did with you.

DAVIS: In retrospect --

FINE: You know what, and neither did I, because I really helped screw you up a little more, too.

SCHWARZ: Davis says he and Laurie Fine had a sexual relationship that she initiated when he says he was 18 and a senior in high school.

(on camera): Were you ever with her sexually?

DAVIS: Yes.

SCHWARZ: Slept with her?

DAVIS: Yes.

SCHWARZ: Had intercourse with her?

DAVIS: Yes.

SCHWARZ: Does Bernie Fine know about that?

DAVIS: I did tell Bernie when I got older. When I was a kid, I thought he was going to kill me. I had to tell him. I told him about it, what was going on with me and Laurie. It didn't pace him one bit honestly.

SCHWARZ (voice-over): Later in the call, Laurie Fine tells Davis she wanted to come to his defense, but she just wasn't capable of it. FINE: Because I care about you and I didn't want to see you being treated that way. It is like another girl like I told you it would be easy for me to step in because you know what you're up against, you're, when it's someone, it's another guy, you can't compete with that. It's just wrong and you were a kid. You're a man now, but you were a kid then.

UNIDENTIFIED FEMALE: This is about a kid who was abused and adults who didn't help, who didn't step in, who in fact sort of allowed it, created a space for it to go on.

SCHWARZ: Danielle Roach, who has been friends with Davis since the second grade says as a teenager she served as the Fine's baby-sitter about three years. Recently, Roach listened to the conversation again. Davis first played the call for her after recording it in 2002.

DANIELLE ROACH, BOBBY DAVIS' FRIEND: This tape tells me that Laurie knew and watched it go on, knowingly that it was going on in her home for a long time.

SCHWARZ: Roach, who is now a mother herself, says she cannot imagine how any mother could know sexual abuse was happening in her home and not act.

ROACH: It's amazing that she can say some of the things she says to Bobby, couldn't pick up the phone and say maybe this isn't the place for your kid, maybe he shouldn't be here.

SCHWARZ: At the time, Davis says he questioned whether anyone would ever believe his story. Yet Laurie Fine tells him she's already warned her husband one day his alleged molestation of Davis might become public.

FINE: I said to him, you know, Bobby and I talked and I know some things about you that if you keep pushing are going to be let out.

DAVIS: Yes.

FINE: He didn't even flinch.

DAVIS: I know! That's what I'm saying -

FINE: He say, beautiful, let him go ahead. Sure. Let him go right ahead.

DAVIS: He doesn't think he can be touched, like -

FINE: No. He thinks that, I think, he thinks he's about the law.

(END VIDEOTAPE)

PHILLIPS: NPR's Mike Peska has been reporting on this story as well. Mike, what exactly do you know about the Fine's marriage and the fact that she knew it was going on and didn't do anything?

MIKE PESCA, NPR SPORTS CORRESPONDENT: Well, what ESPN has reported is they have been way out in front of the story. In fact, a lot of the journalism, unlike Jerry Sandusky at Penn State, which was investigated by state police and state officials, this has been really a media-fueled investigation.

That's not to say that the police haven't been involved and they've become involved with the latest allegations, but you know, since 2002 this has been I guess you could say shopped around to police and the media.

Back then almost a decade ago it was seen as not credible enough or not having enough corroboration to go forward. That all changed when ESPN got a second source on the record to kind of bring these allegations forward.

PHILLIPS: So Mike, what do you think about Penn State, now Syracuse? Do you think we're going to see more coaches exposed? What kind of impact on male sports is this going to have?

PESCA: Well, I think right now we have a data set of two. There are more. There were definitely a lot of sexual allegations and abuse stories in the world of coaching, in the world of sports. It's usually just because adults have access to kids and have a power relationship.

I think that's the threw line. I don't think it's as much to do with sports as it has to do with power and unquestioning authority figures. I see this of a piece with the church abuse scandals, mayor of Bridgeport, Connecticut being involved in pedophilia.

Stories like this just show that people who have power, sometimes aren't questioned and can get away with it. We have to say about Bernie Fine. It's all allegations and that's not even a Performa, you know, this is allegedly we have to say allegedly.

There are so many questions with the Bernie Fine story. You know, I do hesitate to lump this in with things that we know for sure in the church abuse scandals.

PHILLIPS: Just quickly if you don't mind. I asked you this about Penn State. What do you think is going to happen now to Coach Boehem there at Syracuse and the basketball program there.

PESCA: It's different. I think that one of the most notable features of this story was the Jim Boeheim came out so forcefully in defense of lifelong -- almost lifelong friends, Bernie Fine.

From a human perspective, you could understand why he did that. This is a guy that he's known for so long and he never questioned it. People that I know are associated with the Syracuse program. So many people never questioned fine.

That was said of Sandusky, but then later you heard that, you know, they were whispers. So I don't think that is like scenario right now based on what we know. That Jim Boeheim is going to get fired. What he did and what Paterno did all allegedly are different things.

But, you know, if this plays out and you know, actual tangible facts come to for then everyone should be fear for their jobs because, you know, if what is being alleged is true. It's another horrible failure of an institution and that vibrates throughout the institution.

PHILLIPS: Mike Pesca. You can always his sports report on NPR. We sure do and he joins us in a regular basis now. Thanks so much, Mike.

PESCA: You're welcome.

PHILLIPS: More politics coming up, Mitt Romney and that famous quote, there's never a hair out of place, you know that. We'll guess what his stylist is spilling. So what is the style mean about the man? Our "Political Buzz" sounds off.

(COMMERCIAL BREAK)

PHILLIPS: Checking "Top Stories" now.

The parents of the Florida A&M drum major who died earlier this month plan to file a lawsuit against the school. Investigators tell CNN that hazing was involved in Robert Champion's death.

People in Egypt voting today in the first election since Hosni Mubarak was forced from power. Parliamentary voting will take place in phases between now and March.

And Congressman Barney Frank says he won't seek re-election next year. The Massachusetts Democrat has held office for 16 terms or 32 years.

All right, "Political Buzz". Your rapid fire look at the best political topics of the day. Three questions, 30 seconds on the clock and playing today: CNN contributor Maria Cardona; Sirius XM political talk show host and comedian Pete Dominick; and Cheri Jacobus, Republican strategist and columnist for "The Hill".

All right guys, first question. Gingrich riding pretty high in the polls. We've been talking about that this morning. He's earned an endorsement now from New Hampshire "The Union Leader". So how much does that endorsement and all of this momentum really matter right now. Sherry?

CHERI JACOBUS, REPUBLICAN STRATEGIST: I think it matters. He's earned this endorsement. And it's coming at just the right time for him to be able to take full advantage of it. I imagine it's going to help his fundraising a great deal. And this is in Mitt Romney's backyard. So this is an important endorsement and he has every reason to be very enthusiastic and very happy about it.

PHILLIPS: Maria what's your take?

MARIA CARDONA, CNN CONTRIBUTOR: I think it all depends on both what Gingrich does moving forward and how hard he goes after Mitt Romney in terms of his lack of conservative credentials. And frankly on the -- on the "Manchester Union Leader" itself four years ago they pummeled Romney and it was a big reason for his undoing in New Hampshire. If they do the same and it looks very much like they will because this is a paper that just does not like Romney one bit, then it might very well hurt Romney going into New Hampshire which could hurt him going into the rest of the nomination process.

PHILLIPS: Pete?

PETE DOMINICK, RADIO TALK SHOW HOST, SIRIUS XM: Well, Kyra let's give Newt credit. I was one of those talking heads who wrote him off months ago. I still have my bet with you that if he's there in August, I'll give you your charity $500. I don't think he will be. But let's give him credit. He's bounced back he's bounced back because solely how well he's done in the debates.

But the latest Granite State poll says he's still 27 points behind Mitt Romney, he's playing the flag on that state. And was practically the governor of New Hampshire when he was the governor of Massachusetts. Everybody knows him there so I think Mitt Romney is going to still take it in New Hampshire.

But this newspaper is not known for endorsing people that they think can win as opposed to think who should win. Which I like that.

PHILLIPS: Got you. All right, Herman Cain's poll numbers are slipping. Here's what he told our Candy Crowley.

(BEGIN VIDEO CLIP)

CANDY CROWLEY, CNN HOST, "STATE OF THE UNION": What do you think has gone wrong in the past month or so?

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: Well, obviously false accusations and confusion about some of my positions has contributed to it. And that was to be expected.

(END VIDEO CLIP)

PHILLIPS: All right, guys. So can Cain stage a comeback. Maria?

CARDONA: It's going to be really difficult for him to come back from this, Kyra. Because he's got two things going against him, very serious sexual allegations that he has done an atrocious job of responding to credibly and effectively. And his flubs on public policy positions and Republican -- and Republican positions.

For example, he didn't know that -- that China had been a nuclear power for 40 years. His joke about the electrified fence. The fact that he said he would negotiate with al Qaeda and then retracting it. His position on abortion which makes him sounds like a bonafide Democrat. He basically has put around him a putrid aura of un- electability and I don't think he's going to be able to comeback from that.

HOLMES: A putrid aura. Sherry, what's your take?

JACOBUS: Look, I think that he just didn't handle the allegations well whether they are true or false, the sexual harassment allegations. He didn't handle it well and people need to have confidence that a president is going to be able to turn on a dime and handle a crisis situation. So that hurt him. However, I think overall the Republican primary process so far is allowing the candidates to reach their own high water mark. It's not a case where other candidates can tear them down and affect them. They each are pretty much on their own.

Herman Cain reached his high water mark. So he has -- he's responsible for the decline in his numbers. He is responsible if there is confusion about his positions. It's up to him to clarify.

PHILLIPS: Pete, time for you to define the aura.

DOMINICK: I can't do that. That's Maria's job. And I think she just laid out not only the -- the Democratic case but the Republican case against Herman Cain. Herman Cain said these false accusations and confusion surrounding his positions. He is confused -- he is confused about his own positions. The guy is just not intellectually curious certainly about foreign policy.

We saw the excellent debate here on CNN that CNN produced. They guys when talking about Iran talked about how many mountains they have. He is not looking things up. He doesn't seem to care about knowing what he's talking about. And the American people, they sense that.

PHILLIPS: All right. "Buzzer Beater" now; 20 seconds each on this one. Final question; one of Mitt Romney's most recognizable features, his hair. Of course leave it to the "New York Times" to track down his stylist. Who says that he's tried to tell Romney to go more natural but, quote, "He wants a look that is very controlled. The hair goes with the man" end quote.

So what do you think? Is it time for Mitt Romney to let down his hair. And Pete, I don't know if you can answer this question. Because you don't know anything --

DOMINICK: I saw that, that's my -- yes, ok. All right.

PHILLIPS: Cheri, why don't you start? Your hair is beautiful today.

JACOBUS: Oh well, thank you. I think Mitt Romney looks fine. He's being himself. He's authentic. Look, changing the hair didn't make Hillary Clinton president. Changing the clothes all and hair tone didn't make Al Gore president. Putting on an Army cap or helmet in the tank didn't make Michael Dukakis president. I think Mitt Romney is fine. He shouldn't change a thing this is a guys that is authentic.

PHILLIPS: Maria?

CARDONA: No. He should not change his hair. His hair is the only core conviction that Mitt Romney has left. He wouldn't know what to do without it. And I think that people -- he himself wouldn't know what to do if he let his hair down. And people wouldn't know who he is now, they don't know who he is now and besides, I heard that he was against the Dapper Dan before he was for it.

PHILLIPS: I think it's Dapper Dan. Now we're going way back. Pete, help us out? DOMINICK: Well, I never know how much people care about what I'm saying, Kyra. But I certainly I can't imagine they care what they I think about Mitt Romney's choice in hair styles what with this. I'd like to see a bald Mitt Romney, or a bald presidential candidate.

But right now Mitt Romney, I would advise him he's going with the scram of monster of poly walnuts from the soprano's look. The American people do not trust male politicians that do not have gray hair. I think he needs to go fully gray.

PHILLIPS: And I was -- I was trying to look up Dapper Dan for the month -- there it is. I'm finding the image right now. I'll make sure that I bring that up next time. And he does look a little like Mitt Romney I have to say.

CARDONA: Exactly.

PHILLIPS: Thanks, guys. All right, I'll see you again next time.

Well, First Newt Gingrich rises in the polls. Now he gets that big endorsement from New Hampshire's largest newspaper. Tonight Newt Gingrich is going to talk to CNN about what he needs to do to keep up the momentum. Watch the exclusive interview on "JOHN KING U.S.A." That's tonight 6:00 Eastern right here on CNN.

Also coming up Brad Pitt and Angelina Jolie may soon be the parents of seven. We're going to tell you about the latest adoption rumors.

Also, Playboy's sued for alleged sex discrimination. The shocking claim, Hef and his friends favor ladies over dudes. A.J. has got your "Showbiz" headlines next.

(COMMERCIAL BREAK)

PHILLIPS: Let's take a look at the Dow Industrials on the big board there at the New York Stock Exchange. They're up 313 points. We have been getting a momentum and have not dropped down into negative territory which is good news for a Monday.

All right. Miley Cyrus' people are pushing back on the stars stoner controversy. And this is all stemming from a video of Miley at her 19th birthday party. A.J. Hammer has all the details for us -- A.J.

A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": Well, Kyra, I'm just thinking this morning, poor Miley Cyrus. All she wanted to do was celebrate her birthday. That's all she wanted to do. Have a little party. The last thing she wanted, I'm sure, was headlines. But you know, when you're Miley Cyrus, you have to be careful about what you joke about, especially if there is a video camera in the room, which there was.

Now the world has a new Miley video to watch from her birthday party where she was celebrating with Kelly Osborne and a bunch of her friends and joking about smoking pot. Let's take a look at what happened.

(BEGIN VIDEO CLIP)

MILEY CYRUS, SINGER: Thank you for waiting for three hours and throwing a party and --

(CROSSTALK)

KELLY OSBORNE, SINGER: Bob Marley cake.

You know you're a stoner when your friends make you a Bob Marley cake.

CYRUS: You know you smoke way too much (EXPLETIVE DELETED).

OSBORNE: I thought salvia was your problem, Miley.

(END VIDEO CLIP)

HAMMER: Kelly Osborne is joking about the last Miley drug video controversy where Miley was seen taking hits from a water pipe. Cyrus fired back at that time saying she was smoking illegal herb salvia, not marijuana.

Osborne has been on Twitter defending Miley, saying the whole thing is a joke. Miley's friends have been teasing her ever since the salvia story by calling her Bob Miley, which is actually pretty funny. And of course, that's the reason for the Bob Marley birthday cake.

And Miley, Kyra, wants to make it clear all of this was a bunch of goofing around. Her rep has responded to "SHOWBIZ TONIGHT" telling us "It's all been taken out of context. The cake was a joke and Miley's response was intended to be sarcastic." So there it is.

PHILLIPS: All right. Let's move on. How about this new Branjolina adoption rumor. What have you found out?

HAMMER: Yes. These float around every now and again. There is a report in Britain's "Daily Star" that Brad Pitt and Angelina Jolie do want to adopt yet another child from Ethiopia. That will give the pair seven kids altogether; three biological, four adopted. Now they've already adopted kids from Vietnam, Cambodia and they have a six-year-old daughter from Ethiopia.

"The Daily Star" is saying Pitt and Jolie told the daughter they would adopt another child from Ethiopia so she could have a sibling to relate to. Now, there hasn't been an official response to this story from Jolie or Pitt just yet.

But they have made it perfectly clear time and time again exactly what they think about tabloid reports of their lives. Jolie appeared on "60 Minutes" just last night. She's promoting her directorial debut, "In the Land of Blood and Honey". And Kyra she said she usually finds tabloid reports shallow and quite often wrong. She didn't say always wrong, but she said quite often.

PHILLIPS: Interesting. All right. We shall stay tuned.

Now what's up with this guy suing "Playboy". Alleged sex discrimination, really?

HAMMER: Yes. Well, here's the story. A California man is suing "Playboy" over a party that was held at the "Playboy" mansion, called the "Leather Meets Lace" party. They charged men $1,000 to get in. Women, they got in for free. Now the guy reportedly alleges this is discriminatory towards men and it promotes negative stereotypes.

I think it is clearly discriminatory against guys that don't want to spend $1,000 to get into a party. But for any man who has ever felt ripped off on a ladies night somewhere, that night where guys pay, women get in for free, this guy, he is the champion of your cause. He may in fact have a case, Kyra, in California --

(CROSSTALK)

PHILLIPS: Come on. It's the "Playboy" mansion.

HAMMER: Ladies' Nights promotions are discriminatory. They should be able to do whatever they want to do. But you know, this is a litigious society we live in.

PHILLIPS: Yes. It is. A.J. --

HAMMER: We'll be looking for equality in every way.

PHILLIPS: Well, you're our top quality, that's for sure. Always bringing us the scoop. Thanks so much, A.J.

And if you want information on everything breaking in the entertainment world, A.J. always got it. Just go to "Showbiz Tonight" at 11:00 Eastern on HLN or check it back in the morning with us. Both hours 9 and 10.

(COMMERCIAL BREAK)

PHILLIPS: The bodies of three men turned up in shallow graves in Ohio and police say they may be the victims of a new Craigslist killer or killers. Here's our Susan Candiotti.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): Timothy Kern is the most recently identified victim. The medical examiner says he was shot multiple times in the head. The divorced father of three was found in a shallow grave in a wooded area behind a vacant Akron Shopping Mall. His son says Kern was enticed by an ad on Craigslist, as were three other victims.

Fired from his previous job as a street cleaner, Kern accepted a $300 a week job to manage cattle on a 600-acre farm including a including a place to live and a truck to drive.

Before disappearing he wrote this now eerie in hindsight on his Facebook page. "Just got one of the strangest job offers. A good offer, but strange. Life can be such a -- sometimes. When Kern's son wrote of his father's murder he wrote on his blog, "The years ahead of me will be so hard. I love you, dad. Rest in peace."

The possible Craigslist connection surfaced three weeks ago when a man told police he was driven into the woods by two men who advertised a job on a farm. He narrowly escaped after being shot in the arm.

Nine days later police found a fatally shot man in a shallow grave in the same area. Authorities say a fourth man from West Virginia also reported missing answered a similar Craigslist ad. On Friday police found a shallow grave of an unidentified man found in eastern Ohio in the same area the first two victims were discovered.

Police have two suspects in custody. The father of 16-year old Brogan Rafferty tells CNN affiliate, WJW says his son is one of them. He's charge with attempted murder. A second suspect is being held on unrelated charges. His mother identifies him as Richard Beasley and says he mentored the team. This man says he also answered the ad and was interviewed by Beasley. But it doesn't sound right.

RON SANSON: I'm like, "Wait a minute. He owns 688 acre farm, he doesn't know the exact exit at that." Something's wrong there, you know.

CANDIOTTI: Police say a possible motive is robbery though it's unclear what killers could have gained from unemployed victims. Also not known, whether there are more victims of the online ad.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Coming up, good news for coffee drinkers. New study says it could cut some people's cancer risk. We'll explain.

(COMMERCIAL BREAK)

PHILLIPS: All right. Checking stories making news later today. 11:00 Eastern, the family of a Florida A&M university drum major, who died last week will announce its decision to file a lawsuit against the school. We're following that.

And then at 1:40 Eastern President Obama, along with officials of the European Union will make remarks to the news media following a summit at the White House.

And a celebration at 6:00 eastern in Norfolk, Virginia. The USS Enterprise, the world's first nuclear powered aircraft carrier is celebrating its 50th anniversary of active service.

Talk about an eye opener. A new study actually suggests a link between drinking coffee and a lower risk of cancer. Scientists look at women and endometrial cancer. They found drinking four or more cups a day of regular coffee seemed to reduce the risk by 30 percent. Positive results for decaf too, by the way. Researchers point to the coffee's effect on insulin and estrogen levels.

We might want to wait before you hit bye for that online deal. Prices could drop even further on some of those items. We're going to tell you which ones straight ahead in the CNN NEWSROOM with Suzanne Malveaux.

Plus, your boss watching while you shop at work. More companies are monitoring holiday shopping while on the job.

And Britain's Prince William to the rescue. He helped save two sailors from their sinking ship. You'll see the video.

(COMMERCIAL BREAK)

PHILLIPS: Well, we got word this morning that 16-term Congressman Barney Frank will not run for re-election. Our senior political editor, Mark Preston remembers covering Barney Frank himself as a very young reporter, even got chewed out by him. That definitely made him a tougher journalist. Hi, Mark.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: No doubt Kyra, yes, you know, really the rite of passage here in Washington to have Barney Frank make you feel about this big. And I guess that's a good thing for me. But yes, first elected in 1980, Barney Frank will announce in just a few hours he will not seek another term.

Barney Frank has been a stalwart for Democratic ideals. He's been one of the best debaters in congress. One of the biggest fighters against Republicans. He was also one of the first openly gay members of Congress, something that probably helped open the doors for other folks who were in the closet. They saw somebody in congress come out and talk about their sexuality.

But he also had controversy Kyra. Back in 1990 he was reprimanded by the house over allegations of his association with a male prostitute. But just in the past couple of years Barney Frank might have made the comeback, some would say, to push all those bad things aside when he was the co-author of the Dodd-Frank federal regulation bill. This was a bill that was put in place after the collapse of our financial economy as we have it right now.

Barney Frank is leaving his seat at the end of 2012. The seat is in Massachusetts. Very likely will stay Democrat -- Kyra.

PHILLIPS: All right. And we'll follow it.

More than 30 years in that gig.

Mark Preston thanks so much. We're going to have your next political update in just about an hour.

And a reminder: For all these political news, you always go to our Web site, cnnpolitics.com. That does it for us.

Suzanne Malveaux is taking it from here. Did you ever interview Barney Frank?

SUZANNE MALVEAUX, CNN ANCHOR: I did --

PHILLIPS: Yeah?

MALVEAUX: -- a little while ago.

PHILLIPS: Boy, I tell you. If you don't have your stuff in order, he will chew you up.

(CROSSTALK)

PHILLIPS: You've got to have all your facts right.

MALVEAUX: Good to see you.