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Colin Powell Endorses Obama; Jobless Claims Drop; Obama, Romney in Final Sprint; Feds Sue Bank of America for $1B; Giants Win Game One
Aired October 25, 2012 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning, Soledad, thank you.
Stories we're watching right in the NEWSROOM, new this morning, President Obama gets the endorsement of a much-loved Republican. Can it break the deadlock in an election that's just 12 days away?
Also new this morning, the health of our economy. New jobless claims are out. And it looks good. Is it a sign the economy might be turning around?
A man loses his home to foreclosure and gets a mortgage settlement offer but it's not enough to even cover his first month's rent. Keith Ward from Michigan will join us later this hour.
And Tigers fans, they are no fans of Kung Fu Panda. The Giants' Pablo Sandoval gets the World Series going with a bang. Actually it was more like bang, bang, bang.
NEWSROOM starts now.
And good morning to you. Happy Thursday. I'm Carol Costello. Thank you so much for joining us.
President Obama is about to take the stage in Tampa. And he'll have some big news to celebrate with his supporters. Just over an hour ago, Republican with vast crossover appeal announced his endorsement for Obama. Listen to this from former Secretary of State, Colin Powell.
(BEGIN VIDEO CLIP)
GEN. COLIN POWELL, FORMER SECRETARY OF STATE: Well, you know, I voted for him in 2008 and I plan to stick with him in 2012, and I'll be voting for he and for Vice President Joe Biden next month.
UNIDENTIFIED REPORTER: That's an endorsement of President Obama for re-election?
POWELL: Yes.
(END VIDEO CLIP)
COSTELLO: Chief White House correspondent Jessica Yellin is at the Tampa event.
So, Jessica, a lot of Republicans say Colin Powell is a RINO, Republican in name only. Will this endorsement matter?
JESSICA YELLIN, CNN CHIEF WHITE HOUSE CORRESPONDENT: Hi, Carol. Well, first of all, the president is just taking the stage behind me. He's flown overnight from Las Vegas where he's on this nonstop battleground tour to the states he feels he has to lock up to help win the White House again.
Carol, the bottom line with endorsements is that they tend not to move votes. But what it means -- so that's no different with Colin Powell. What is meaningful about the endorsement by Powell is what he actually said. And if you listen to it, he echoed what the president is saying in his closing days. He said that he is not voting for Mitt Romney because he does not think that his economic plan adds up and because on foreign policy, Mitt Romney keeps changing his position.
He used the words, it's a, quote, "moving target." That echoes the president's message and so the president can use that endorsement to argue it's not just political spin. Even Colin Powell, a respected Republican, agrees.
COSTELLO: All right, Jessica.
YELLIN: So you may see that come from the president.
COSTELLO: All right. Jessica, we're going to talk more about this. But let's listen to the president for just a bit.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: You know, we are right in the middle of our 48-hour fly around campaign extravaganza.
(CHEERS)
We are pulling -- we pulled an all-nighter last night. We just came from Iowa, Nevada, Colorado. We're going to Virginia and Ohio. I'm going to stop in Chicago. I'm going to do some early voting in Chicago.
(CHEERS)
I can't tell you who I'm voting for. It's a secret ballot.
(LAUGHTER)
But Michelle says she voted for me.
We can vote -- we can vote early in Illinois, just like you can vote right now in Florida. So I've come to Florida today to ask you for your vote.
(CHEERS)
To ask you to help me keep moving America forward.
(CHEERS)
If you notice, my voice is getting a little hoarse, but I'm just going to keep on -- I'm just going to keep on keeping on.
(CHEERS)
Until every single person out there who needs to vote is going to go vote. Because the stakes are just so high, Florida.
You've heard now three debates. You've seen months of campaign, way too many TV ads. I know you guys are sick of TV ads. Except the ones that I'm in.
(CHEERS)
Maybe even those, too. But you've also had a chance to see the two candidates and the two perspectives. You've heard Governor Romney's sales pitch. Don't boo. Vote.
(CHEERS)
He's been running around, saying he's got a five-point plan for the economy. Except it turns out that it's just a one-point plan. A sketchy deal. That says folks at the very top get to play by a different set of rules than you do. They get to pay a lower tax rate. They outsource jobs. They want to roll back Wall Street reform. That was his philosophy in the boardroom. That was his philosophy as a governor.
And if it sounds familiar, it's because that's the philosophy that created a great recession.
COSTELLO: OK. We're going to jump away from the president's speech for just a bit and talk about this Colin Powell endorsement because in light of his second endorsement of Barack Obama, the former Secretary of State was also asked about his standing as a Republican. Listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED REPORTER: General, you worked for several Republican presidents. Are you still a Republican?
POWELL: Yes. I think I'm a Republican of more moderate mold and that's something of a -- of a dying breed, I'm sorry to say. But, you know, the Republicans I worked for, President Reagan, President Bush 41, the Howard Bakers of the world, people who were conservative, who were willing to push their conservative views but people who recognized that at the end of the day you've got to find a basis to compromise.
UNIDENTIFIED REPORTER: But then, General --
POWELL: Compromise is how this country runs.
UNIDENTIFIED REPORTER: Are you then saying that you think you may have to leave the Republican Party if it continues in the direction that it's going?
POWELL: No, I didn't say that at all, Charlie. But nice try.
(END VIDEO CLIP)
(LAUGHTER)
COSTELLO: OK. For some more analysis of this, I want to bring in CNN contributor John Avlon on the CNN Election Express this morning. He's in Orlando.
John, good morning.
JOHN AVLON, CNN CONTRIBUTOR: Good morning, Carol.
COSTELLO: OK. So you are an independent. You worked on the Giuliani campaign. So maybe you lean right. I don't know. So is this Colin Powell endorsement, is it helpful to the president?
AVLON: I think it is helpful, especially in 2008 Colin Powell's endorsement made a big impact for then candidate Obama.
Colin Powell has an almost talismanic effect on independent voters. He is a barometer of their support. Amid this term, Colin Powell's criticisms of the president really also reflected independent's disenchantment with President Obama. The fact that he's coming back to support him a second time I do think is important.
And for those folks spending the day saying it doesn't matter, of course it's less newsworthy when someone endorses you a second time. But just imagine for a second the Republican joy if Colin Powell had turned around and said, this time I'm supporting Mitt Romney. That's a barometer of how much Colin Powell's endorsement really -- matters and means in this election.
COSTELLO: Well, of course, the Republicans have Condoleezza Rice. She's actively campaigning for Mitt Romney. That's helpful, right?
AVLON: Sure. Sure, it's all helpful. It's all helpful but it's more helpful when someone on the other party, someone respected by voters in the center, independents, crosses party lines to endorse you, because that indicates a broader base. It indicates an opportunity to build a broader coalition.
And that's what folks are looking for in this election. You know, the undecided and swing voters we've been talking to on the battleground bus tour, Carol, one thing you hear all the time, yes, they're concerned about the economy, sense it's getting better but hasn't gotten better fast enough. But consistently they're frustrated with the hyper partisanship in Washington.
They say whoever wins this election, we want to find -- have them to find a way to work with Congress, members of the opposition party. So when a Republican like Colin Powell who worked for Reagan and both Bush -- Presidents Bush, endorses Barack Obama, that sends a message that there's at least the potential of a broader coalition. And you heard Colin Powell talking about how he's a more moderate Republican, a centrist Republican. That's a tradition that he said is almost an endangered species now. It really needs to come back in the future, I think, for us to get Congress working again.
COSTELLO: John Avlon, thanks so much. You'll visit us again in just a bit. And we look forward to some more of what you have to say. Thanks, John.
There are nine so-called battleground states and not one of them is more important than Ohio. Especially for Mitt Romney. No Republican has ever been elected president without winning Ohio.
Today the GOP candidate is hitting three parts of that state. In a couple of hours he'll talk at a campaign event in Cincinnati and, of course, we'll carry parts of his remarks, live.
ANNOUNCER: This is CNN breaking news.
COSTELLO: And we do have breaking news this morning on the economy. First time unemployment claims dropped by 23,000 last week.
Alison Kosik is following the story from the New York Stock Exchange.
So tell us what this means.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: So, Carol, they wound up dropping to 369,000, that's the level from last week. And you know what, the drop wasn't quite as big as everybody had hoped. Not really affecting futures so much, looking like the Dow is going to open up about 60 points.
You know, one thing about these claims numbers, they're very volatile, and especially lately. There have been these kind of crazy fluctuations in these claims numbers, especially earlier this month because of some seasonal quirks. But this time around, the Labor Department says there weren't any quirks in this week's report. So the good news is this should be a pretty clean reading, giving us a little bit of clearer picture of where the job market stands.
But look, even with this decline, these claims numbers are still pretty elevated, 369,000, that's a lot of people who were laid off. Economists want to see these numbers closer to the 350,000 level and eventually closer to the 300,000 to show that there's some real solid job creation going on here.
We're going to give you an even better picture of how the employment situation is doing next Friday, that's when the government releases its official monthly jobs report for October. And this is going to be, Carol, the last reading before the presidential election. And you know the size of the gain could sway voters in one direction or the other. This is going to be an interesting one to watch -- Carol.
COSTELLO: Yes, ma'am.
Alison Kosik, live at the New York Stock Exchange. We have to talk a little bit about the weather now because Hurricane Sandy leaves Cuba and takes aim at the Bahamas but not before claiming at least two lives. Reports say one man was killed in Jamaica after being hit by a boulder that came crashing down in torrential rain. And a woman with was killed in Haiti while trying to cross a flooded river.
Sandy hits out eastern Cuba as a Category 2 hurricane with winds gusting up to 115 miles per hour.
Meteorologist Rob Marciano is here now to tell us where she's headed now.
ROB MARCIANO, AMS METEOROLOGIST: Into the Bahamas, Carol, with winds of 105 miles an hour. It got somewhat disorganized as it passed over the eastern edge of Cuba, but now getting organized again with the eye developing. Hundred and five an hour winds, northerly moving at 18 miles an hour. That will continue for the next day or so.
It may weaken a little bit as it gets further north, cool waters, a little bit stronger in the way of some jet stream winds, but it's going to be close enough to Florida where you're going to feel the impacts. Tropical storm warnings have been posttest as far north as Daytona Beach.
So weather is going to start to deteriorate, going downhill as far south as Key West and will be making its way up the eastern seaboard of Florida here over the next couple of days. Then look what happens. It gets to about Cape Hatteras. You're going to feel huge waves up and down the east coast here and then potentially coming back towards the left, retrograding, kind of putting the gears in reverse.
And a number of our computer models that were hinting at this yesterday, well, more have got on board today. And these are a number of our forecast solutions. And some of them right into the Del Marvin, New York City, Boston, or even Maine.
But regardless of where it goes, it's going to have a huge impact on a lot of people. Believe it or not, Carol. The cold air that's struck down across the center part of the country is affecting the steering currents that may bring this storm, and it could be a kind of wintery hybrid, into the northeast, Monday, Tuesday, Wednesday of next week. We'll keep you posted.
COSTELLO: OK. I'm sure you will. Thank you, Rob.
The old joke goes vote early and often. Well, in several key states the first part of that is definitely true. So how is early voting having an impact on Ohio?
(COMMERCIAL BREAK)
COSTELLO: It is 15 minutes past the hour. Time to check our top stories.
Pakistani police have arrested six men in connection with the shooting of a Pakistani school girl who spoke out against the Taliban. The primary suspect is still at large. His mother, brother and fiancee have been detained but are not accused.
Officials now say it was a great white shark that killed a surfer off southern California Tuesday. The shark is estimated to be between 15 and 16 feet long based on the size of the teeth marks left on the surfer's board. The beach is now closed.
In money news, Singapore Airlines plans to stop flying the world's longest route next year. The 10,000-mile nonstop flight from Singapore to Newark, New Jersey, takes 19 hours. The carrier blames rising fuel prices and lower passenger demand.
The International Space Station's population is doubling. Three crew members arrived within the work. They're joining three others who've been on the orbiting lab since July.
Today, President Obama will go where no other president in U.S. history has gone, becoming the first commander-in-chief to vote early. He talked about his plans moments ago at a rally in Florida.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I'm going to stop in Chicago. I'm going to do some early voting in Chicago. I can't tell you who I'm voting for. It's a secret ballot.
(END VIDEO CLIP)
COSTELLO: He's following the lead of the first lady, who cast her absentee ballot last week. Early voting was a boom to then Senator Obama's campaign in 2008. One study showed more than half of them were cast in his favor. This year, it seems to be giving the president an edge in one key state. Of course, that key battleground state of Ohio, where a new poll shows the president with a 2-1 lead among early voters.
Joining me now are: Chris Redfern, chairman of the Ohio Democratic Party. And Matt Borges, executive director of the Ohio Republican Party.
Welcome to both of you.
(CROSSTALK)
COSTELLO: Good morning. Thank you for being with us.
Matt, I want to start with you. Nearly one-third of all Ohioans voted early in 2008. The Republicans seem to have learned a lesson from that.
How has your party changed its ground game?
MATT BORGES, EXECUTIVE DIR., OHIO REPUBLICAN PARTY: The ground game is incredibly impressive here in Ohio with the RNC and Romney campaign have been able to put into place. I think it surpassed what the president has been doing here on the ground. Voter contact is at an all-time high, knocked on over 3,000 doors this week alone.
You know, this is -- this is a massive effort that reflects the mood of the state, country as it pertains not only to the president but to our candidate, Mitt Romney, who has just an amazing amount of intensity behind him, as being reflected in the polls and also what we're seeing on the ground.
COSTELLO: Chris, several Ohio officials have expressed concerns. More than 800,000 have been requested, none have been completed. If they are not returned, as residents have until, what, November 17th to cast a provisional ballot? How could this waiting game in a key state impact a very tight election?
CHRIS REDFERN, CHAIRMAN, OHIO DEMOCRATIC PARTY: Well, we know there are thousands, hundreds of thousands of ballot requests out. That's why we're doing so much work to get out the vote. Those phone calls and those door knocks will end once you turn your ballot in.
So, were focused on turning out about 2 million early voters, voting in person or by mail and taking advantage of that final weekend when early vote is allowed on that weekend, turning out tens of thousands of more voters, extending our lead in the early vote so that during Election Day we can focus on our GOTV efforts, in what we believe is the largest operation for the Democrats in the nation.
COSTELLO: Well, could this change to an overall electoral process in Ohio?
REDFERN: Oh, I think four years from now, I think Matt will agree, we'll be focusing almost entirely on early vote and vote by mail efforts. Because of the work that's been done on modeling, we can target -- micro-target down to the individual voter. And then we can have that relationship with the voter that OFA and the ODP has created over the course of the last four years to ensure that that vote is turned out, we bank those votes long before Election Day and we can focus on a one day GOTV effort to be successful.
Here in Ohio, we have two candidates running for office. One of them said, let Detroit go bankrupt. It really let Ohio go bankrupt with our reliance on American automobile jobs. I think that's why you see a five-point lead in most polls for Ohio for president. And we're looking forward to the final 11 days.
COSTELLO: OK. And, Matt, a question for you. A federal appeals court restored early voting for all of Ohio residents on the final weekend of October after Republicans tried to limit that weekend to just military and those overseas, claiming it strained statewide systems.
What evidence do you have of any strain?
BORGES: Well, thanks to Republicans, we have 35 days of early voting in Ohio. We have had that since 2005, since the Republican legislature expanded early voting.
You know, we have zero days of early voting in Michigan and Pennsylvania, 35 days here in Ohio to get your ballot cast. And so -- that was a Republican initiative that we're proud of. We are seeing very much so is that across the state, Franklin County alone, you know, Columbus, your old stomping grounds, Carol, in Franklin County, 35,000 fewer Democratic votes by mail at this point in time in 2008.
The intensity is obviously on our side. And we're very proud of our Secretary of State and legislature for providing the opportunity, unprecedented opportunity from our neighboring states and even across the country by mailing every single voter, every registered voter in Ohio an absentee ballot application, the opportunity to participate in this process.
We're sure they will. You know, we want everyone to participate. We want everyone to vote. And we know at the end of the day that that will be a good thing for the Republican ticket.
COSTELLO: OK. Chris Redfern, Matt Borges -- thank you so much for joining us this morning. We sure appreciate it.
BORGES: Thank you.
REDFERN: Thank you.
COSTELLO: They can be busy guys in the next few days.
Talk back question this morning, did Donald Trump make a mockery of presidential politics? Facebook.com/CarolCNN.
I'll be right back.
(COMMERCIAL BREAK)
COSTELLO: Now is your chance to talk back on one of the stories of the day. The question for you this morning: did Donald trump make a mockery of presidential politics?
In case you missed it, because you were afraid your brain would wither and die, Donald Trump, a passionate birther, is offering $5 million to President Obama's favorite charities if the president releases his passport applications and college records. This was the Donald's October surprise.
Please humor as I read a few choice tweets, quote, "Today's Gallup poll will be completely useless since it will have been entirely conducted before the Trump offer."
And this one, "Me to Donald Trump. Go away, please."
Here's Trump on CNN's "PIERS MORGAN".
(BEGIN VIDEO CLIP)
DONALD TRUMP, TRUMP ORGANIZATION: I'm looking at in a very positive way for the president. I think it's a tremendous thing for the president. He gets to give $5 million to a --
(END VIDEO CLIP)
COSTELLO: That means I won't torture you any longer.
At least the president has a sense of humor about it.
(BEGIN VIDEO CLIP)
OBAMA: This all dates back to when we were growing up together in Kenya.
JAY LENO, THE TONIGHT SHOW WITH JAY LENO: Yes.
(CHEERS)
LENO: I got to give you that one. I've got to give you that one.
OBAMA: We had constant run-ins on the soccer field.
LENO: Yes, yes. Have you --
OBAMA: When we finally moved to America, I thought it would be over, but --
LENO: Yes, yes. No, no.
(END VIDEO CLIP)
COSTELLO: And to think Donald Trump teased us with a pseudo presidential run, forced an American president to release his birth certificate and endorsed and at one time was embraced by the Republican candidate for president.
You laugh, but in April of 2011, Trump led the Republican PAC for president in public policy voting of primary voters, 11 points had ahead of Mitt Romney. Ain't American politics grand?
So, the talk back question for you this morning, did Trump make a mockery of presidential politics? Facebook.com/CarolCNN, Facebook.com/CarolCNN.
Your comments later this hour.
Banks behaving badly have to pay up. It's part of the major mortgage settlement. And victims who lost their homes, let's just say they're not getting millions of dollars.
(COMMERCIAL BREAK)
COSTELLO: Thirty minutes past the hour. Good morning. Thank you for joining us. I'm Carol Costello.
Happening now, we're watching the opening bell at the New York Stock Exchange where stocks are expected to open higher. Ringing the bell, several CEOs and executive leaders. They have sent a letter to Congress, urging lawmakers to curb the nation's deficit. Forecasters, you know, as in Rob Marciano, say hurricane Sandy could turn into a powerful nor'easter. The category 2 hurricane is leaving Cuba, heading toward the Bahamas after reportedly killing two people, one in Jamaica, and another in Haiti.
The U.S. Air Force is asking for $3.5 billion to rebuild a fence in space. Yes, a fence in space. So-called space fence is actually a series of radar signals that track orbital debris. That debris can pose a danger to manned space flights and satellites.
A new "TIME" magazine poll has President Obama five percentage points ahead of Mitt Romney in the critical battleground state of Ohio. Not surprisingly, the Romney campaign is hitting Ohio hard, crisscrossing the state and holding three rallies there today.
Just yesterday, vice president candidate Paul Ryan held a rally in Cleveland. Listen.
(BEGIN VIDEO CLIP)
REP. PAUL RYAN (R-WI), VICE PRESIDENTIAL CANDIDATE: Americans are a compassionate people. And there's a consensus in this country about our fundamental obligations to society's most vulnerable. Those obligations are not what we are debating in politics.
(END VIDEO CLIP)
COSTELLO: It's most likely an attempt to make voters forget about what Mitt Romney said at a fund-raising dinner when he was being secretly taped.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL NOMINEE: My job is not to worry about those people. I'll never convince them that they should take personal responsibility and care for their lives.
(END VIDEO CLIP)
COSTELLO: Joining me now: CNN political analyst, Roland Martin, who leans left, and CNN contributor Will Cain, who leans right.
Good morning, gentlemen.
ROLAND MARTIN, CNN POLITICAL ANALYST: Good morning.
WILL CAIN, CNN CONTRIBUTOR: Good morning, Carol.
COSTELLO: So in Paul Ryan's speech, he talked about compassion and how Mitt Romney cared about the poor. And I'm sure it's because of those secretly taped comments. I guess the question is, is that message resonating, Will?
CAIN: Well, first, can I say -- is it in response to the tape that you just played? I don't know, because of the effect the tape has had and political mechanism. By politically, I mean, how it's been spun and talked about.
But let's be clear. In that tape, no matter how wrong or right it was, and I've criticized what Mitt Romney said in that tape on your show, Carol. He wasn't talking about policies. He was talking about campaigning. He was talking his ability to win the votes of various people in the 47 percent.
He wasn't talking about how a Romney administration would approach poverty. He wasn't talking about compassion.
Now, what Paul Ryan had to say yesterday was that he recognized a couple of things. First of all, the government spent $1 trillion on welfare programs over the past year. Shockingly, shockingly, $1 trillion on welfare programs is more than they spent on Medicare and Social Security. Those are record levels.
So, the question needs to be asked, what are you getting for all of this spending? And are you effectively -- are you effectively being compassionate? Are you helping to raise people out of poverty?
Republican principles suggest, conservative principles suggest by creating economic growth overall, you rise all boats. Rising tide lifts all boats and that is how you attack poverty.
COSTELLO: Well, let's talk about how you attack policy and how a Romney administration might attack poverty. Because Paul Ryan also mentioned Mitt Romney's history as a pastor who counseled poor people and people who'd lost their jobs in Boston inner city neighborhoods.
Also Karl Rove's Crossroads PAC is now running this ad. Let's take a look.
And then, Roland, I'd like your comments on the other side.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: And he chose to have Mitt give the eulogy at his funeral and he gave a beautiful eulogy. To spend time with a 14-year- old boy in his last days, that -- you cannot help but know that he's caring.
(END VIDEO CLIP)
COSTELLO: So the Republicans are talking a lot about how Mitt Romney cares and how he's a good counselor and how he was a great pastor. But what about policy, Roland? Are you hearing any of that?
MARTIN: Right. Ads like that are simply a shell game. You look at the actual budget that Congressman Paul Ryan put forth, it would decimate many of these programs. In fact, you also saw him yesterday lying, criticizing the Obama administration.
Let me also remind everybody out there, you have had Republican governors who have actually requested those welfare to work waivers. Governor Herbert, Utah, Republican, endorsed the Romney/Ryan ticket, requested a waiver. Governor Sandoval, Nevada, Republican governor, requested those waivers.
Why? Because they said if we get the waiver, we might be able to do a better job in our states as opposed to these requirements. And so you see a shell game going on. I would ask Congressman Ryan what about those Catholic nuns, what about the Catholic bishops who are opposing his budget, saying they would decimate programs for the poor?
Look, this is a perfect example of Mitt Romney again wanting to say one thing and doing another. He is saying this is what I do in my personal life. When it comes to public policy, he is not trying to have programs that really deal with poverty and deal with the poor. It is nonsense. And again, we can see through it clearly.
COSTELLO: I want to pivot to another topic, because the former Secretary of State Colin Powell came out and endorsed President Obama, said he was going to vote for him again this time around.
Will, do you think that will help President Obama?
CAIN: To some degree. I think that -- look, four years ago, many Republicans endorsed President Obama. Many Republicans saw that hope and change was a message that they believed in. You know, like Colin Powell, you saw people like Christopher Buckley, the son of William F. Buckley, founder of "National Review", get behind President Obama.
My suspicion is you'll have fewer of those Republicans buying into President Obama the second time around, but Colin Powell has. And, yes, that will help President Obama to some degree.
MARTIN: Carol, let me help you out. Christopher Buckley compared to a former Joint Chiefs of Staff chairman, as well as Secretary of State, four-star general, not even a comparison.
CAIN: I didn't say Christopher Buckley --
MARTIN: No, no, I'm simply comparing that you can't even put them in the same sentence. What I'm saying is this here, Carol. General Powell talked about the ridiculous foreign policy plan saying it is a moving target.
Basically, he was very critical of what Mitt Romney had to say or frankly didn't say in the debate on Monday. Powell also is important because he's a moderate Republican, and independent voters also appeal to, in terms of what he had to say that's also appealing.
When you have a tight race, you have slivers of people that get to make their minds up. Any kind of endorsement like this matters. Again, he has a credible voice. When he speaks about foreign policy, trust me, a lot of people listen.
COSTELLO: We'll see. Roland Martin, Will Cain, we have to wrap it up. I'm so sorry. Thanks to both of you, as usual.
MARTIN: Thanks a lot.
COSTELLO: Man lost his home to foreclosure after it was in his family for years. He got caught up in that subprime mortgage mess. Following the settlement, he is poised to get some money. But wait until you hear how much the government is offering him for losing his home.
(COMMERCIAL BREAK)
COSTELLO: The federal government goes after the nation's largest bank. Bank of America is being sued for more than $1 billion in what prosecutors call the hustle.
Alison Kosik is at the New York Stock Exchange to explain.
Good morning.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning, Carol.
So, the Justice Department is accusing of B of A of deliberately generating and then selling thousands of defective home loans to investors, these are loans which later defaulted under Fannie Mae and Freddie Mac.
Now, today, Bank of America is telling us the following. It says, "Bank of America has stepped up and acted responsibly to resolve legacy mortgage matters. The claim that we have failed to repurchase loans from Fannie Mae is simply false."
And goes on to say, "At some point, Bank of America can't be expected to compensate every entity that claims loss that actually were caused by the economic downturn."
But noticed, the statement is not directly denying allegations that it used the process known as the hustle. Now, this is what the government says began under Countrywide in 2007 and continued under Bank of America through 2009 after it bought the mortgage company. Now, hustle's goal was, Carol, was to write lots of mortgages and write them fast to keep these loans moving forward to get them through the approval process. And get this, to keep things moving.
Countrywide allegedly threw out some quality control steps that would have backed up the process and, you know, it was up to Countrywide to make sure these loans met certain standards before passing them on to Fannie and Freddie.
Clearly, the government says that didn't happen. It said, even in some cases, some applicants didn't have critical pieces of paperwork but were approved anyway.
One more thing making this whole situation worse, Carol, the government says hustle, this program, gave loan processors bonuses for pushing through more loans. So, basically, Carol, gave people incentives to cut corners -- Carol.
COSTELLO: OK. We're going to translate to the real -- we're going to translate all you said to the real world now. Alison Kosik, thank you.
Because our next guest knows what it's like to have a mortgage with Countrywide and bank of America turn sour.
Keith Ward lost his home to foreclosure in 2008. The house and his wife's family for 40 years sold at auction for $20,000.
Few weeks ago, though, he got this letter from the state of Michigan telling him he's getting a settlement after the U.S. government sued his bank for illegal foreclosure practices. His part of the settlement? Wait for it -- $840. Maybe more. Right now, $840.
Keith Ward joins us now on the phone from Eastpointe, Michigan.
Nice to talk to you again, Keith.
KEITH WARD, LOST HOME TO FORECLOSURE (via telephone): You, too, Carol. How have you been?
COSTELLO: I've been great. I hear you're doing better and I'm so glad about that.
WARD: Yes, we are.
COSTELLO: Good. I'm so glad to hear that.
The money you may get is part of a $25 billion settlement between the federal government and the banks, but you may get 840 bucks. I mean, when you read that, when went through your mind?
WARD: Just total disbelief, because my family home with his lost and $840, that wouldn't even cover my rent payment right now.
COSTELLO: Did you think it was a joke at first?
WARD: What's that?
COSTELLO: Did you think it was a joke at first?
WARD: Yes, I did, because it's like a slap in the face. It's really -- what do they expect people to do at $840? It's nothing really, with the way things are. It's nothing. It's not going to go anywhere.
COSTELLO: The Justice Department is now suing Bank of America for $1 billion for hustling home loans. Do you feel any sense of justice because of that?
WARD: No. Because so many people out there that are in a situation like I have been in. They don't have their family homes anymore. And how are you going to -- how can you repay losing memories?
You know, it feels like it's just another way to just push it to the side again, you know. They can't put us back into our homes, you know? You've got to go on and, you know -- it's going to fight in litigation for probably decades. And nobody like myself will see anything out of it.
COSTELLO: I know you're renting right now. Do you think that you'll ever own a home again?
WARD: That's my hope. It's my admiration.
COSTELLO: I just --
WARD: You remember when we talked -- what was it, four years ago, I think it was?
COSTELLO: Yes.
WARD: Do you remember how much it hurt me, losing my family's home. That hurt hasn't changed. And it probably won't until I'm able to put my family back in our own home again. And believe me, that is my goal.
COSTELLO: You kept your family above water and that is remarkable for all that you went through. Keith Ward, thank you very much for being with us. It was great to talk to you again.
WARD: You, too, Carol. Thank you very much.
COSTELLO: Sure.
Talk back question today, did Donald Trump make a mockery of presidential politics? your responses, next.
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COSTELL: 48 minutes past the hour. Checking on top stories now. Pakistani police have arrested six men in connection with a shooting of a Pakistani school girl speaking out against the Taliban. The primary suspect is still at large. His mother, brother and fiancee have been detained but not accused.
Right now, Hurricane Sandy is heading towards the Bahamas after pounding Cuba with more than 100 miles per hour winds. The National Hurricane Center says the category 2 hurricane lost some strength after landfall but there are reports of at least two deaths from Sandy. A woman in Haiti and a man in Jamaica.
Officials now say it was, indeed, a great white shark that kill a surfer off southern California. The shark is estimated to be between 15 and 16 feet long based on the size of teeth marks left on the surfer's board. The beach is now closed.
New foreclosures fell in 62 percent of American cities in the third quarter. That's according to realty track. Some of the biggest decreases were in several cities in California and also in Las Vegas. Much of the central and south Florida saw foreclosure rates rise by double digits.
In today's health for her, all pregnant women should get vaccinated for whooping cough. That's the recommendation from a group of government health officials. They say women should get the shot known as TDAP every time they get pregnant. It also protects against tetanus and diphtheria. (COMMERCIAL BREAK)
COSTELLO: Talk back question this morning. Did Donald Trump make a mockery of presidential politics. This from Marge, "Trump has far too much time on his hands. Perhaps he should try investing his multi- millions into U.S. jobs instead of cheap politics." This from Natdonben, "Mr. Trump is the epitome of egoism gone awry. We would not be having this discussion if it weren't for his exceptional wealth and toupee."
Sadly I think that's his real hair. This from Steve, "If the President responds and delivers, his charity gets $5 million. If I were him, I would do it just to shut the Donald up. $5 million could help many, many people." And this from Dan, "Someone should offer him 5 million to take off the bad hair he wears. Or maybe he should fire his stylist for making it look so bad. That's what rich people do, right? Fire people?"
Ouch. Facebook.com/CarolCNN. Please continue the conversation.
Pablo Sandoval can now be mentioned in the same sentence with Eeggie Jackson. We'll show you "Kung Fu Panda's" greatest hits from last night's World Series.
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COSTELLO: It was a painful night for Tigers' fans. The San Francisco Giants took game one of the World Series thanks in large part to the guy they call Kung Fu Panda. Pablo Sandoval hit three home runs to power the Giants past the Detroit Tigers, 8-3. Two of his blasts came off the Tigers' ace Justin Verlander who lasted only four innings. Sandoval becomes only the fourth player to hit three home runs in a World Series game joining Babe Ruth, Reggie Jackson and Albert Pujols. Good company for a guy who only hit 12 home runs in the regular season.
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PABLO SANDOVAL, NEW YORK GIANTS: It's part of the dream, being in the World Series. I was thinking being in this situation, three homers in one game, you know. You have to keep focused and play your game.
(END VIDEO CLIP)
COSTELLO: He was fantastic. Game two tonight. Detroit sends Doug Fister to the mound. The Giants counter with Madison Baumgartner.
NFL picking up on a New Jersey boy's idea for refs to use pink penalty flags as part of breast cancer awareness month. 11-year-old Dante Cano (ph) wrote commissioner Roger Goodell who said the flags will be used at this Sunday's Miami Dophins, New York Jets game. Dante and his family have been invited to the game and will present the pink flags to officials.
People in Brick, New Jersey, are still talking about Anthony Starego's game-winning field goal Friday night. It marked a big victory for a young man who faced challenges his whole life. Anthony was orphaned at three and has autism. His foster parents took him to a college football game six years ago and Anthony decided he wanted to be a kicker. Daily practices and the calming routine that comes with the kicks put Anthony in a position to be a hero. Good for him. That's a look at sports this morning.
The next hour of CNN NEWSROOM starts right now.
