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President Obama Tours Battleground States; Top Female Drug Cartel Boss Caught; Interview with Congressman Joe Walsh; French Aviation Board Release Scathing Report About Air France Jet Crash; The Death Toll Rising in Syria; Pakistan Opening Supply Routes to NATO Trucks; Rich French Buying Estate in New York City; Convicted Offender Says Caffeine Made Him Do It

Aired July 05, 2012 - 15:00   ET

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

ASHLEIGH BANFIELD, CNN ANCHOR: Coming up, top of the hour, everybody. I'm Ashleigh Banfield sitting in for Brooke Baldwin today.

President Obama kicking off a two-state bus tour, Ohio and Pennsylvania, kicking that off early this morning as well. Two critical states towards his reelection as well. Let's tick through this again, shall we?

Ohio, 20 electoral votes. That's a lot. Barack Obama carried Ohio back in '08, roughly 52 percent of the vote back then. And he did even better in Pennsylvania, ticked up by two there. He carried Pennsylvania with 54 percent of the vote, and Pennsylvania another swing state with 21 electoral votes.

CNN's Dan Lothian with us now from Sandusky, Ohio. You are off the bus, officially, and now we can see your smiling face.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. We're on firm ground.

BANFIELD: It's good to know, terra firma. So give me the lay of the land. I can't even think of -- this is stop number two of four in Ohio?

LOTHIAN: Right. This is stop number two, and the president will be arriving here about, I'd say, within the hour we should be hearing from the president. It's also a big ice cream social here. And we expect to hear more of what the president said in his last stop, which was about an hour away from here, where his focus really was on the economy and what his administration has done to, as he puts it, pull the economy back from the cliff, the president realizing and letting his supporters know that the situation is still not great, but it's much better than when he first came into office.

And what's important about this region is that they have lost a lot of manufacturing jobs over the past few years. Obviously, the auto industry is big in this region, GM and Chrysler, at providing jobs for folks in the last town that we just came from. And they're starting to see a little bit of a recovery here. So the president told them that the reason for that is because of some of the things that he has done. Take a listen. (BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When the American auto industry was on the brink of collapse and more than one million jobs were on the line, Governor Romney said we should just let Detroit go bankrupt. I refused to turn my back on communities like this one.

I was betting on the American worker, and I was betting on American industry. And three years later, the American auto industry is coming roaring back.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

LOTHIAN: Now, the president also took another shot at Mitt Romney for working for a company, the private equity firm Bain Capital, that he says pioneered outsourcing. The president saying that he, in fact, is focusing on in-sourcing jobs, offering incentives, tax incentives for those companies that have moved jobs overseas to bring them back home.

BANFIELD: So, Dan Lothian, tell me a little bit about your shadow detail. I know that you're following the president, but then someone else is following you.

LOTHIAN: That's right. That's right. We have former presidential candidate Tim Pawlenty, also the governor of Louisiana, Bobby Jindal. Both of them are doing their own shadow bus tour.

It's essentially what the Obama campaign, Democrats, were doing when Romney was on a similar tour recently. And what they're trying to do is make sure that Romney's message is getting out there. And they're saying that, you know, the president, he can talk about what he has done, but that America and Americans in general are no better now than they were when the president first took office.

In addition to that, when we first landed this morning, we just have to look up and you can see more reinforcing that message. There was a small airplane pulling a large banner that said Romney 2012. So this is President Obama's bus tour, but Mitt Romney is closely shadowing the president.

BANFIELD: OK. So we have that new thing called bracketing, the shadowing.

But do we have what we have seen in other campaign stops? Have you seen any evidence so far on this bus tour of the hecklers, the Republicans who show up or the campaign operatives who show up from the opposite campaign to really throw a wrench into things?

LOTHIAN: Right.

You know, it's just been one event so far. I know at one point the president seemed to be interrupted. We were sitting behind the venue and I know everyone started chanting four more years. They were trying to drown out whatever it was that was taking place there, so it does appear a heckler or something interpreted the president's remarks ever so briefly.

But beyond that so far, we have not seen any large protests or anything like that. But we're just getting started, so you never know what we will see down the road.

BANFIELD: And it happens on both sides of these campaigns as well.

Dan Lothian, good to see you. Thank you, sir.

Just a reminder as well that the president is expected to speak live during this hour. So we will keep an eye on the clock and keep an eye on the live shot. We will bring part of that to you just as soon as it happens.

In the meantime, we have got this for you. This is fresh and new today. The French aviation board that's been looking into a stunning aircraft disaster has issued a damning report, essentially blaming the flight crew for the catastrophic crash of an Air France jet three years ago. Here are some of the images.

That plane crashed halfway across the Atlantic from Rio to Paris. About four minutes after the Airbus 330 began to lose speed., all 228 people who were on board died in that crash.

Richard Quest is in London. He's been parsing this report.

At first I thought, Richard, that this report was assigning some equal blame, because I know there's been a political bus between Airbus, the maker of the plane, and Air France, the employer of the crew. Can you break down essentially what this report really does tell us?

RICHARD QUEST, CNN CORRESPONDENT: The report is clear that the initial surprise event, as it's known, was the failure of pitot tube, the speed sensor, that led the plane to lose its speed measurement.

Now, pilots are supposed to have trained for that and react in a particular way. And, indeed, that's not happened here. When the censor failed, the pilots, realizing something had happened, took a course of action, and the way the report describes it, the pilots' inputs were abrupt and excessive.

They were -- a startle effect, the emotional shock at what had taken place. And then, as things got worse, and the reactions became more extreme, it says there was a saturation of the mental resources needed to make sense of the situation.

So long story short, something happened, shouldn't have been that serious. The pilot flying reacted in a particular way, and that ultimately doomed the aircraft.

BANFIELD: And this is critical, because I think there was a consideration by French magistrates at one point to investigate these companies for manslaughter. So it's critical what this report says.

QUEST: It is.

And -- but I'm not going to -- the manslaughter aspect is, you know, for the vast majority of us, you, me, and everybody flying, whether anybody, Air France or anybody's prosecuted for manslaughter is really rather irrelevant, because it's the safety recommendations, it's the lessons that were learned about the technology on board, the education needed to handle a plane in high altitude, at speed, when there's a stall imminent, those are the lessons of this 206-page report.

And I can tell you, having read a lot of this and certainly the interim reports, this has been a seminal incident, because it's drawn very sharp attention to the way pilots not just trained initially, but the recurrent training. What are they refreshed on? What do they now need to know?

And one thing was quite clear, Ashleigh, was that they need to have better handling of the aircraft personally and manually at altitude.

BANFIELD: I would rarely differ with you, except I think on this one point of the separate investigation into manslaughter, because when two companies are facing criminal charges, it may actually chasten them significantly and it may change the way everything happens, the training of the pilots and everything, no?

(CROSSTALK)

QUEST: No, no.

BANFIELD: No?

QUEST: No, I disagree with you completely on that.

No airline, no airline is going to be -- or plane manufacturer -- is going to be motivated by whether they are prosecuted for corporate manslaughter one way or the other. Air France has a fleet of several hundred planes. Airbus has thousands of planes in the sky at this -- you know, every day.

It is in their interests. And I promise you, having spoken to the airlines, spoken to the plane makers, they know, if they do not understand the lessons of this, then they are doomed to repeat them and therefore have more fatal accidents. And that is the motivating factor here.

BANFIELD: I think, yes, you do make a great point. They are exposed, no matter what happens, just by the very fact that the nature of their business is so very dangerous.

(CROSSTALK)

BANFIELD: Richard, thank you. It's good to see you. I appreciate the work that you did looking through that report for us. Richard Quest, live in London for us.

For months, Senator John McCain has asked the Obama administration to do something, anything, when it comes to the bloodshed in Syria. And just a short time ago, CNN has had a chance to sit down with him. You will hear what he had to say.

Also, we're getting some of the first video of the first NATO trucks in months finally allowed to get back on the road, cross from Pakistan back into Afghanistan. This is huge, folks in America's strained relationship with a nuclear-armed nation. These things have been sitting there, getting rusty while our troops have needed them. So we will explain why they're back on the road, how long it's going to take for our troops to get what they need -- back after this.

(COMMERCIAL BREAK)

BANFIELD: We will take you to Syria now, and a brand-new number, 16,700. That's the estimated number of people killed in Syria since the uprising there began 16 months ago.

Senator John McCain has for months called on the United States to lead an international effort to protect Syrian citizens. He's just finished an interview with our Arwa Damon in Lebanon.

And she joins me live now from Beirut.

So the salient points of what the senator is suggesting we do, Arwa?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, it's what he's been advocating for quite a few months now.

And that is for the U.S. to take on a leading role, rather than a following role, when it comes to trying to resolve the crisis in Syria. He was saying that it is quite clear at this point that the Russians are not going to back down when it comes to their support for the Assad regime, that they continue to send in weapons and other means of military equipment that the government is using, and that, basically, the playing field or the battlefield, rather, needs to be a bit more level than it is at this point in time and that effectively time is running out. Take a listen to some more of what he had to say.

(BEGIN VIDEO CLIP)

DAMON: Practically speaking, this plan you have, these calls for military intervention, how do you foresee -- how would you foresee that playing out?

SEN. JOHN MCCAIN (R), ARIZONA: First of all, the Arab world and the people in this part of the world are waiting for American leadership, which is lacking.

Obviously, what we are proposing is a safe zone where they could organize, where they could equip and train people. It would have to be, obviously, a no-fly zone. And I am confident that the other countries in the region, some of whom are already supplying the resistance with weapons, would be far more engaged.

(END VIDEO CLIP)

DAMON: And, Ashleigh, Senator McCain was also pointing out a number of potential consequences should inaction continue when it comes to trying to resolve the crisis in Syria, that at this point in time, no, al Qaeda is not the opposition, as some have been claiming, but that al Qaeda could potentially base itself in Syria because of the conditions that exist there.

He was also talking about the type of blow the fall of the Assad regime would deliver to Iran. But at the end of the day, he was saying the most important thing was to try to somehow end the suffering of the civilians, to stop the killing, stop the torture, and to just somehow bring an end to the bloodshed.

BANFIELD: Well, I mean, American leadership is a very complex notion when it comes to Syria. It's unlike any other nation in that part of the world.

And there is a report that just came out early this morning from Iraq that in fact, and these are the Iraqis reporting this, that al Qaeda elements are, indeed, either en route or in Syria. So that really does complicate things if you're talking about arming or giving aid in any way to this opposition, doesn't it?

DAMON: Oh, most certainly. And this is not a simple or an easy solution, should that at the end of the day be the solution that is put into play in some way, shape, or form.

When it comes to the Iraq element in all of this, you must also remember that when the insurgency was at its peak in Iraq, there were dozens of fighters crossing from Syria, many of them Syrians themselves. They have all returned, and they are more than ready and willing to fight the regime.

And a lot of the tactics we have been seeing now being employed in Syria are really echoes of what we saw taking place in Iraq. And let's not forget the tribal ties between both nations too. So, most certainly, the Syrian battlefield is incredibly, incredibly murky.

This is something that Senator McCain acknowledges, but then he also goes on to say that as murky as it is right now, that is only going to be a worsening situation. The options are only going to become even worse if this is allowed to drag on even longer.

BANFIELD: Yes, there are certainly no easy solutions, and particularly with that extraordinarily porous border with Iraq.

Arwa Damon, excellent work. Thank you very much.

Just 24 hours after a breakthrough in America's strained relationship with Pakistan, the nuclear-armed nation is opening up those supply routes to NATO trucks for the first time in seven months. Just look at the tarpaulins. Look at how shattered and tattered everything is. They have been there for a long time, sitting, wasted. This is some of the first video we have got. The trucks are beginning to cross from Pakistan into Afghanistan, those vehicles carrying much-needed supplies for the NATO forces in the ground war in that war zone, including supplies for U.S. troops, not just NATO troops, but U.S. troops as well.

Are you one of those people who just cannot put down your cell phone or your BlackBerry or your iPhone after work, still e-mailing, making calls, work-related, even after you're off the clock? If so, I have got news for you. You will not believe how much overtime you have just put in. You will not believe the math, because someone has finally done it, O.T. with no pay. You might want to reconsider how much effort you put into your job off the job when you hear this coming up next.

(COMMERCIAL BREAK)

BANFIELD: If you're thinking about buying a home, you could be getting record-breaking low interest rates. These could be the lowest interest rates ever for you, mortgage rates for a 30-year fixed loan smashing the old record and hitting a new low at 3.62 percent.

A little bit of context here. A year ago, that same rate, 4.6 percent. Depends on how expensive your house was and how big your loan is, but it could cost you hundreds of dollars a month. It could save you hundreds of dollars a month if you can get a refi, if you can get the refi. That's one of the catches, because it is hard to get those.

So you think after a long, hard day of making all that money to pay your mortgage that you would be able to take a break, take a breath, put your phone down, stop checking your e-mails. There's a brand-new survey that says that it is just way too hard for a lot of us to do that. Apparently, we Americans put in about a month-and-a- half of overtime every year.

Stop and let that germinate, a month-and-a-half of over time, unpaid, just by answering the calls and the e-mails at home. O.T., no pay.

(FINANCIAL UPDATE)

BANFIELD: OK, she's known as the pretty one, and also one of the most wanted drug gang bosses in the world. You can bet she checks her e-mail all the time. Get this, though. The feds just found her right here in the U.S. of A. Wait until you hear how this bust went down.

(COMMERCIAL BREAK)

BANFIELD: Now to a big arrest made in the war on drugs, and it's not your average arrest. It's a woman, Los Angeles, too, being the arrestees.

They handed over La Bonita, meaning the pretty one, to Mexican authorities after her arrest on immigration violations. The police believe that she was the top U.S.-based operative in the notorious La Familia drug cartel. Mexico has offered $375,000 as a reward for her capture.

She's accused of helping oversee the cartel's meth distribution in California and in Washington State.

Latin American affairs editor Rafael Romo joins me live now.

So as I understand it, this arrest went down without incident, which is not what you usually expect when you're talking about a cartel like this.

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: That's right, Ashleigh.

And this particular arrest talks about what has been happening in the last few years between U.S. and Mexican authorities. It's a coordination and exchange of information. And what they say is that there was an exchange of information, information coming from Mexico to immigration authorities in the California area.

They received that information and acted on it. Interestingly enough, this woman is famous for appearing beautiful, wearing makeup and using designer clothes. When she was arrested, she was found in a very modest apartment. And if you look at the pictures and you think about the fact that she's known as the pretty one, there's a little bit of a -- I mean, the nickname doesn't really apply when you think about it.

And her arrest is very significant, because she was in charge of distributing not only cocaine, but also meth to both California and Oregon, belonging to the Mexican drug cartel known as La Familia. And, Ashleigh, this is one of the most violent cartels in Mexico. However, in the last couple of years, it's been decimated. Two leaders have been arrested already.

BANFIELD: So let me tell you about La Bonita. She's been relocated and repatriated to Mexico five different times between 2004 and 2005 by Border Patrol. How on Earth does this just keep happening? And what makes us think this time is going to be any different?

ROMO: Talks about how elusive is the border. And this case, if you think about the fact that she's only 27 years old, and back to 2004, she was basically a teenager when she was arrested the first time, all of these times, we're talking about immigration violations.

This time, she's going to jail for sure, and she's going to spend several years there. There was a 64-page criminal warrant in the Mexican state of Tamaulipas for her arrest, arrested in the United States, and now extradited to Mexico, Ashleigh.

BANFIELD: La Bonita from La Familia, Rafael Romo, it's good to see you. Thanks very much.

ROMO: Thank you.

BANFIELD: A Republican congressman says his Democratic challenger talks too much about serving time as a Blackhawk helicopter pilot in Iraq, service that cost her both of her legs.

So does Congressman Joe Walsh regret his comments that were caught on videotape or does he stand by those comments? I'll get a chance to ask him live because he's on the split box with me now and we're talking after the break.

(COMMERCIAL BREAK)

ASHLEIGH BANFIELD, CNN: A congressman from Illinois is backing down from some of his comments, questioning if his election opponent is, quote, "a true hero."

The opponent is Lt. Col. Tammy Duckworth, who lost both of her legs in 2004 as a Blackhawk helicopter pilot in Iraq. She took an RPG hit and that chopper went down.

She's now running for Congress in Illinois. And she is running against Republican incumbent Joe Walsh, who, at this town hall video meeting, is shown making a controversial comment. He'd been talking about how Senator John McCain has been reluctant to talk about his time serving.

(BEGIN VIDEO CLIP)

REP. JOE WALSH, R-ILLINOIS: Now, I'm running against a woman who -- I mean, my God, that's all she talks about. Our true heroes, the men and women who served us, it's the last thing in the world they talk about. That's why we are so indebted and in awe of what they have done.

(END VIDEO CLIP)

BANFIELD: For her part, Lt. Col. Tammy Duckworth responded. Have a look.

(BEGIN VIDEO CLIP)

LT. COL. TAMMY DUCKWORTH: He's just trying to shift the focus away from the fact that he's done nothing in his two years in Congress, other than be an extremist loudmouth for the Tea Party.

(END VIDEO CLIP)

BANFIELD: Yesterday, Walsh told CNN's Wolf Blitzer that he does think that Duckworth is a true hero, but that he doesn't, quote -- or that that doesn't, quote, "command our vote."

Congressman Walsh joins me live now from Chicago.

Sir, you are taking it on the chin for this. Are you regretting making those comments?

WALSH: Oh, God, no, Ashleigh. Look, this is what happens when you've got a congressman that's always out in front of people talking. Look, and every -- you know, those comments were made a week ago at a two- hour town hall with 400 people talking about ObamaCare. And like I do at the beginning of every one of my town halls, I introduce the heroes in our presence, the veterans. Look, I'm not going to back down --

(CROSSTALK)

BANFIELD: Are you saying this is just a slip-up? Are you saying it's just a slip because you --

WALSH: No, no, Ashleigh --

BANFIELD: -- (inaudible)?

WALSH: No, Ashleigh, this wasn't a slip-up. I don't regret anything I said. Understand me. Every man and woman who's worn the uniform is a hero in my book. I've said that thousands of times. I've called Tammy Duckworth a hero hundreds of times.

This is a manufactured issue, because when I'm out there, hey, look, this is the lay of the land out there now. When I'm out there, I'm being taped by Tammy Duckworth's people. They are manufacturing this crisis --

BANFIELD: It doesn't matter whose -- I've got to be honest with you, sir, it doesn't matter who's running the tape. It does not matter who's got the tape.

WALSH: No, it -- Ashleigh, I know it doesn't matter --

BANFIELD: Hold on a second. It's not the only time --

WALSH: And, Ashleigh, I don't --

BANFIELD: -- you've said something like that --

WALSH: Ashleigh --

BANFIELD: You've told "Politico" (inaudible). You told "Politico" this, "What else has she done, female, wounded veteran, eh" -- and I'm paraphrasing, "eh," I'm assuming that --

(CROSSTALK)

BANFIELD: -- what is that?

WALSH: Ashleigh, Ashleigh, Ashleigh, you are paraphrasing. I didn't say, "Eh." What I said was, she's a war hero, but you know what, she's running for Congress. So like I don't know about you, Ashleigh, but hopefully voters think, like every other candidate for Congress, tell us where you stand on issues. And for some --

BANFIELD: Well, she's done that. I'm not sure why you haven't seen that.

WALSH: No, she hasn't, Ashleigh.

BANFIELD: I've got a list here, (inaudible) --

WALSH: No, Ashleigh, she hasn't --

BANFIELD: Do you want to hear it, Congressman? Do you want to hear it or do you just want to rail on me?

WALSH: Hey, Ashleigh.

BANFIELD: I've got the list here.

WALSH: No, Ashleigh --

BANFIELD: She's talking about the Supreme Court health care hearing on June 28th. She talked at length about the contentious climate in Washington on May 2012. She talked about health care reform on 2012. She talked about the economy, food stamps, Pell grants, student loans -- shall I continue --

WALSH: Ashleigh, Ashleigh, Ashleigh.

BANFIELD: Why do you say she doesn't do anything other than talk about her service?

WALSH: Ashleigh, Ashleigh, before just reading all about her talking points, and being there for her, give me a second to talk, all right?

She spends a lot of time talking about her war service. I've asked her to debate me monthly. She won't. I've asked her to get directly in front of voters with me. She won't.

She will not get in front of voters and take questions directly from voters. Because she's a war hero, Ashleigh, that demands our respect. But that doesn't demand our vote. What demands our vote is --

BANFIELD: But it is not respectful, Congressman --

WALSH: -- tell us, here's who I am, here's who --

BANFIELD: It is not respectful for you to --

WALSH: What's not respectful, Ashleigh?

BANFIELD: "Now I'm running against a woman who, my God, that's all she talks about." She did serve for 20 years --

WALSH: Ashleigh --

BANFIELD: She comes from -- let me finish, sir.

WALSH: Ashleigh --

BANFIELD: She comes from a military family; she did lose both of her legs fighting in Iraq. She has done -- and I do have a list -- because I am your opponent in this interview, a list of things that she has actually --

WALSH: No, because --

(LAUGHTER)

BANFIELD: -- accomplished for the government with regard to veterans' affairs.

WALSH: Ashleigh, you're just not my --

BANFIELD: She served in veterans' affairs. Well, let me put it to you this way.

WALSH: Hey, Ashleigh --

BANFIELD: (Inaudible) campaign -- sir, I'm not finished asking my question. You ran --

WALSH: Well, Ashleigh, look, Ashleigh, I'm not going to sit --

BANFIELD: -- talking about respect.

WALSH: -- here --

BANFIELD: In 2000 -- excuse me. In 1996 --

WALSH: -- if you don't let me talk.

BANFIELD: I'm asking you a question. You ran a campaign in 1996 against --

WALSH: Ashleigh, you're going to go back to 1996?

BANFIELD: -- (inaudible) -- Yes, I am.

You were running for the U.S. House of representatives --

WALSH: Well, that's ridiculous. Hey, Ashleigh --

BANFIELD: Do you want to hear this question or not?

WALSH: This campaign is about ObamaCare -- no, I don't want to hear about --

BANFIELD: You ran against (inaudible), 87 years old and you --

WALSH: The voters want to hear --

BANFIELD: -- lit a birthday cake with 87 candles on it to show how old he was --

WALSH: Oh, Ashleigh --

BANFIELD: -- in an attempt to slam his age. Is that respectful of your opponent?

WALSH: No -- Ashleigh, Ashleigh, it was simply to say happy birthday to him. Hey, look, Ashleigh, too many Republicans and Democrats stay in Washington too darned long. If you're 80 or 90 years old and you never come home to your district, you shouldn't be a member of Congress.

Makes sense, no? Look, every candidate for Congress has to be held to the same standard. We all come from different places. This country is about to fall off a financial cliff, Ashleigh. And what voters want to know is, what are you going to do about all this debt? Where are you on ObamaCare? What are you going to do to help small businesses --

BANFIELD: But I just told you that she's speaking in front of voters about ObamaCare, and yet --

WALSH: Ashleigh, she's not in front of voters.

BANFIELD: -- you're (inaudible) constituents and saying all she does is talk about her record as a war hero. And (inaudible).

WALSH: Ashleigh, when was the last time, Ashleigh, you saw her directly in front of voters? When was the last time you saw her in an open public forum in front of voters?

BANFIELD: Well, I'm not on the campaign trail for everybody who is actually running, but I can read up on it. And I'm actually very curious as to why you haven't.

WALSH: But you did plenty of research for her. Ashleigh, you did plenty of research for her (inaudible).

BANFIELD: Because I am challenging you, sir, in your contention that she talks of nothing else.

WALSH: Ashleigh, Ashleigh --

BANFIELD: She does speak of other things.

Yes, Congressman, Congressman. Yes, Congressman.

WALSH: Ashleigh. You ready? She was on TV a month and a half ago. She was asked a question about gay marriage. Do you know what she talked about? Her time at Walter Reed.

Look, I'll say it again. I have respect for her and her service. My thoughts and prayers go out to her, like they do every wounded warrior. But that doesn't demand our vote. Ashleigh, if that's what it took to be -- to get your vote, John McCain, another hero, would be our president. Come on!

BANFIELD: Well, let me ask you about that notion --

WALSH: This election is about what we're going to do about these issues.

BANFIELD: -- you suggested, Congressman, you suggested that the real heroes don't talk about their service. I'm actually working with Dave right now, who's just to the left of my camera, who's a Vietnam War vet, who disagrees with you.

Not everybody talks about their service or doesn't talk about their service because of honor. Sometimes it's just really difficult to talk about your service. And sometimes a lot of vets are very proud to talk about their service.

So who, sir, are you, to suggest for a moment that no one should talk about their service because it's not honorable?

WALSH: No, that's not what I said, Ashleigh. That's not what I said, Ashleigh. I said most veterans I know don't talk about their service or the combat they saw. It's part of what makes those who served so noble. And you know, like I know, most veterans --

BANFIELD: But who are you to suggest that that makes them noble? It makes them noble if they served. Have you served? Have you served?

WALSH: No, no, no -- Ashleigh, that's my opinion. Ashleigh, no, that's my opinion.

BANFIELD: Have you served?

WALSH: Ashleigh, no, that's my opinion.

BANFIELD: Have you served?

WALSH: To me, that's what makes our -- Ashleigh, I'll say it again, no. But, Ashleigh, that's --

BANFIELD: Then who are you to suggest what a veteran's mind is when he or she decides whether or not to talk about his or her service?

WALSH: Oh, Ashleigh, I'm confused. Did you serve in Iraq?

BANFIELD: I've just become a citizen of this country. And you know what, I would like to. I just -- I am perplexed by how you could suggest that it's not honorable --

WALSH: No, let me finish -- Ashleigh, let me finish --

BANFIELD: -- to talk about your service.

WALSH: Let me finish a thought. You didn't serve in Iraq, I didn't serve in Iraq. Does that mean you and I don't have the right to have an opinion about the war in Iraq?

BANFIELD: I would never suggest that I know why my colleague does or does not speak about his Vietnam service.

WALSH: No, Ashleigh, you didn't -- Ashleigh, you didn't answer -- you didn't answer that question.

BANFIELD: I answered your question.

WALSH: Do you have a right to have an opinion? BANFIELD: And you are the politician, sir, who made the comments. I did not make the comments about Tammy Duckworth, and I'm asking you, when you say that it's not honorable to talk about your service out on the campaign trail because it's more honorable to do it the way John McCain did, who are you to suggest why John McCain did not talk about his service? Do you know that it's just out of honor or do you know that perhaps he does not like to talk about it because it's difficult?

WALSH: You know like I know, that most veterans, because they are noble -- and, by the way, Ashleigh, that's my opinion. Just my opinion. You may disagree.

They don't talk about their service and they don't talk about their combat. And you know the ironic thing about this whole conversation? They don't consider themselves heroes. That's for our benefit.

I recognize every man and woman that's served as a hero for our benefit, so we never forget them. They don't call themselves heroes, Ashleigh. That's the beautiful thing about our veterans all of them. don't you agree, Ashleigh?

BANFIELD: For the record, I have never heard Tammy Duckworth call herself a hero. For the record, I have never heard her call herself a hero, but I have heard many other people call her a hero.

WALSH: You've heard many other -- Ashleigh --

BANFIELD: She gave her leg and her arm for our service. I think she has the right to say so --

WALSH: She is a hero.

BANFIELD: (Inaudible) her entire life in service, and her father was a veteran, too, of two wars, so she's lived it. So why can't she talk about (inaudible)?

WALSH: Ashleigh, have you heard -- have you heard -- have you heard any veteran call themselves a hero? Have you heard any of them?

BANFIELD: You are suggesting that -- you know what, we could go back and forth on this, but I'll tell you one thing, sir --

WALSH: No, have you?

BANFIELD: -- I don't want you to suggest for a minute that because you're the Republican and she's the Democrat, that I'm taking her side, as you suggested earlier. When I go up against someone in an interview, I play the adversary.

And in this, I am your adversary and I'm also very proud of any veteran's service, including my colleague standing just to the left of my camera. And I don't think it's for any of us to say why or why not they speak of their service.

WALSH: Have you heard any veteran call themselves a hero? (Inaudible) because they don't. BANFIELD: We're beyond that. And Tammy Duckworth did not call herself a hero.

WALSH: But you can't answer that, can you?

BANFIELD: I answered it. Tammy Duckworth did not call herself a hero.

Speaking about your service does not suggest you are calling yourself a hero. It is a (inaudible) and --

WALSH: I called her a hero.

BANFIELD: -- it is something someone should be able to speak of. And you know, I wish more Vietnam veterans felt like they could get out on a campaign trail and speak about their service, but they didn't feel like they could, because they didn't get the reaction that they should have when they came home, and that's a shame. So I don't think that you should be suggesting that Tammy should be quiet.

WALSH: No, no. Ashleigh, I call her a hero. Let me ask you one more question --

BANFIELD: But don't disdain her campaigning.

WALSH: -- because of that, should she get elected because of that service? Yes or no?

BANFIELD: You know what? She should get elected if her voters like the fact that she has a list of accomplishments, when it comes to tax credits for Illinois businesses, she established the first veteran's caucus, she started up a 24-hour (inaudible) --

WALSH: Yes, Ashleigh, thank you --

BANFIELD: -- don't, stop - 24-hour crisis hotline for veterans. She created the vets cash grant program. She established the nation's first health issue insurance program for vets. She created the GI loan for heroes --

WALSH: Ashleigh --

BANFIELD: You said all she does is talk about it. These are actually accomplishments.

WALSH: When it comes -- when it comes to -- there you go. When it comes to issues, that's why we should elect people. So I'm taking it that, again, you don't think someone who served automatically should get elected when they're running for Congress. It comes to what you've done and where you stand on these important issues of our time.

And right now, Ashleigh, I can tell you, in our district that we're running for, people are losing their homes, they're struggling to get by every day and they're unemployed. What voters want to know is what is Duckworth or Walsh going to do about those things. That's what I'm trying to engage her in, and I wish she would join me in front of voters.

BANFIELD: And the voters will decide and they will use character as well.

WALSH: Absolutely.

BANFIELD: And I thank you very much for being a part of our conversation.

WALSH: Absolutely, Ashleigh.

BANFIELD: Joe Walsh, you're a worthy adversary and I hope we get to talk again at another time, sir.

WALSH: Ashleigh, anytime.

BANFIELD: Thanks for your congressional service as well.

Still ahead -- whew, I need to take a big breath. They are powerful, they are rich, and they've got a lot of money to spend. They are the France, folks, and they're coming here and buying up our fancy- schmancy luxury apartments. We're going to show you the apartments and tell you why this is happening.

(COMMERCIAL BREAK)

BANFIELD: The super rich have their sights set on Gotham, but it's not the Americans, necessarily, buying up all the high-end real estate in New York. It's the French. One of the reasons might be that they think their president doesn't really like them.

Here's Felicia Taylor.

(BEGIN VIDEO TAPE)

FELICIA TAYLOR, CNN CORRESPONDENT: For top real estate agents in New York these days, it doesn't hurt to speak a bit of French.

Pamela Johananoff is showing this newly renovated apartment on Manhattan's West Side to (INAUDIBLE), a French-born derivatives broker who lives in New York.

He says when it comes to investing in property, New York wins hands down over the eurozone.

INDENTIFIED MALE: Next to perfect at the moment.

TAYLOR: He's not the only Frenchman setting his sights on a swanky Manhattan (INAUDIBLE).

Barnes International USA director Christophe Bourreau says the number of French citizens interested in buying in New York for investment purposes is rising fast.

CHRISOPHE BOURREAU, BARNES INTERNATIONAL: We have been contacted over the past month by people that never came to New York, but they read articles here and there that the market is strong.

TAYLOR: Chalk some of that up to the election of France's new socialist president, Francois Hollande, who once said ...

PRESIDENT FRANCOIS HOLLANDE, FRANCE (through translator): I don't like the rich. I don't like the rich. I admit that.

TAYLOR: Hollande has pledged to hike tax rates on those making more than $1 million euros a year to 75 percent. Other taxes on the rich could rise as well.

And with socialists now in complete control of the French legislature, those goals are within reach to the dismay of many.

XAVIER GUERY, DERIVATIVES BROKER: If you have to give up 75 percent of whatever you make over $1 million, what is the point of working harder?

TAYLOR: (INAUDIBLE) says the socialist sweep is a wakeup call for French citizens looking to invest outside of France.

UNIDENTIFIED MALE: The truth is they're really interested about it. They think maybe go hard and make it real.

TAYLOR: For those moving to New York and snapping up property in the so-called French invasion, they're going to feel right at home. They'll find many outdoor cafes like this one, read and sip a cappuccino. You can come here and buy a croissant or baguette or quiche.

Or maybe pop into La Dure for one of their well-known French (INAUDIBLE) just like you would in Paris.

As for apartments ...

UNIDENTIFIED FEMALE: And it's been beautifully decorated.

TAYLOR: The French do like luxury.

PAMELA JOHANANOFF, BARNES INTERNATIONAL: The price range for my clients right now it's between $1 million and $5 million.

TAYLOR: Among the units Barnes International is showing off, this one at the venerable Carlyle Hotel.

JOHANANOFF: It was renovated very, very recently.

TAYLOR: And Barnes believes it will see a more than 30 percent spike in a number of New York apartments it sells to the French this year. The views are magnifique indeed for those wealthy enough to swap the Seine for Central Park.

Felicia Taylor, CNN, New York.

(COMMERCIAL BREAK) BANFIELD: This next story is going to fire you up. A school bus driver convicted of molesting women and teenage girls tells the judge, sir, it was the caffeine that made me do it. Did it work? You'll find out in a moment.

(COMMERCIAL BREAK)

BANFIELD: A convicted groper says caffeine made him do it. That's what Kenneth Sands actually decided to tell the judge as to why he molested four teenage girls and a woman at a school event that wasn't even related to his job as a school bus driver.

He got five months in jail, but he got a suspended sentence, too. Sands explained at his sentencing that he is mentally ill and he had to switch medications and then he had this massive intake of caffeine when those incidents happened.

(BEGIN VIDEO CLIP)

KENNETH SANDS, CONVICTED OFFENDER: That caused a psychotic episode. As stated, my son-in-law and daughter had never seen that kind of behavior from myself.

(END VIDEO CLIP)

BANFIELD: Joey Jackson's on the case like nobody else could be. Caffeine made me do it? Seriously?

JOEY JACKSON, DEFENSE ATTORNEY: You know, it's interesting because we hear about alcohol making people do things, don't we? But caffeine? Wow, it's beyond the pale.

Listen, it didn't work. He was suggesting he had bipolar disorder and other issues. I think the judge did the right thing here and that is with the suspended sentence. What that means is, yes, the judge gave him 30 days for each count, right? He'll spend about six months in jail.

But there was a five-year sentence that he could have imposed and in fact he did, but a suspended sentence means it hangs over your head. So if you do anything else, you're going to serve that time. If you don't do anything else, then you're OK.

After that five years then there's the five-year probationary period. So this person better walk the straight and narrow for guess how long? Ten years. If he doesn't, he could find himself serving this sentence.

BANFIELD: Do you ever as a defense attorney ever run the risk of throwing something out there thinking it's spaghetti that might stick? When you suggest caffeine to a judge he's going to throw the book at you?

JACKSON: In my case, all too often. But you have to make arguments within reason. I think reasoned arguments judges respect. But when you start throwing anything out there in terms of trying to justify why your client would do what they do?

BANFIELD: Like the Twinkie made me do it.

JACKSON: It's all about credibility. If you lose that credibility, then you lose the fight. Caffeine makes us do a lot of things, keeps us up. But makes us grope people? I think that's a bit of a stretch, don't you?

BANFIELD: I could see it as a defense if something happens where you're driving and speed up too quickly or something.

JACKSON: No. Not groping.

BANFIELD: Not so much.

JACKSON: No. And being in places you're not supposed to? Let me go to a volleyball game when I'm not supposed to be will and just grope people.

BANFIELD: Joey Jackson, on the case. Nice to see you. Thanks so much. Appreciate it.

It is time now to turn things over to my pal, Wolf Blitzer, whose in "The Situation Room."