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Capital, Guns and Teachers; Two More Funerals in Newtown Today; NBC's Engel, Crew Freed from Syria; Remembering Senator Daniel Inouye; Friends Talk About Gunman

Aired December 18, 2012 - 14:30   ET

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

BROOKE BALDWIN, CNN ANCHOR: We are tracking the growing debate here over possible new gun control laws. Some lawmakers calling for new restrictions or at least a new discussion of this particular issue. But the gun rights side of the argument, it is mostly quiet. The National Rifle Association has been silent since before Friday's shootings. We've gone to the FaceBook page. It's actually been deactivated. No new tweets from the NRA. No new postings on its website. But the group's critics, they are speaking out.

(BEGIN VIDEO CLIP)

CROWD: Shame on the NRA. Shame on the NRA.

(END VIDEO CLIP)

BALDWIN: The NRA, known for its powerful D.C. lobbying operation, you see everyone out and about, this was yesterday, this is right on Capitol Hill. Demonstrators marched outside the offices there, chanting shame on the NRA.

Texas Governor Rick Perry, however, he is speaking out at a Tea Party event. He came down in favor of the right to carry a legally purchased concealed weapon, just about anywhere in Texas, including in schools.

(BEGIN VIDEO CLIP)

GOVERNOR RICK PERRY (R), TEXAS: If you go through the process and you have been dually backgrounded and trained and you are a concealed handgun licensed carrying individual, you should be able to carry your handgun anywhere in this state.

(END VIDEO CLIP)

BALDWIN: Still, no official word as far as what actions the president may be taking here. But we know the president met Monday with top aides, multiple cabinet members including the education secretary and the attorney general.

Now, there is a company, Don, I want you to talk about here, that apparently makes this rifle, this Bushmaster rifle, it is owned by a private investment group. What is the story here?

DON LEMON, CNN ANCHOR: Well, Brooke, the private investment group is called Cerberus. Cerberus said earlier today that they're going to sell that weapons company.

But "Fortune" is reporting now that the California Teachers Retirement System is a big investor in that fund and making them an indirect investor in the maker of Bushmaster rifles.

So you can understand there's a bit of an issue here. I want to go now to Dan Primack of "Fortune." He broke this story. Dan, how did this -- the California Teachers Union become involved in this sort of investment thing with Cerberus, a company that makes Bushmaster rifles?

DAN PRIMACK, SENIOR EDITOR, "FORTUNE": The California Teachers Pension, which is called "CalSTRS," which is the largest pension for public school teachers in America, it invests a lot in private equity funds that do everything from health care to retail to manufacturing.

Cerberus is a diversified fund so invest in lots of stuff. CalSTRS invested in Cerberus funds and those Cerberus funds then invested in Freedom Group or actually really created Freedom Group. They bought Bushmaster and then started adding on, adding on to make what is currently the largest U.S. gun manufacturer.

LEMON: So, Dan, is this like when you invest in your 401(k) or whatever, whatever investment you might have, and it is in a mutual fund and you don't know which companies are in that mutual fund. Is that how it is or did they have direct knowledge that this company was a maker of these rifles?

PRIMACK: No, it is different. First of all, it is different because of the long-term investment. In other words, unlike your 401(k), if you wanted to pull your money out, you can't. Once you're in, you're in, unless you did a private sale with someone else.

But no, they know what's in it. These are large transactions, and for CalSTRS, for example, which committed $500 million to one of these funds they don't give a $500 million check up front. They say we'll give you this money and every time Cerberus does a deal, it asks for a piece of the money to do the deal.

In the case of Freedom Group, they would have asked for money to do Bushmaster and so on. Plus, Freedom Group filed to go public in 2009. CalSTRS certainly would have known about that and they would gotten quarterly and annual updates from the firm.

LEMON: So, Dan, let me ask you, why is Cerberus now selling the company that makes the guns and the ammunition?

PRIMACK: They haven't exactly explained it. They put out a state this morning saying they feel what happened in Newtown, is a, quote, their term, "A water shed event and caused them to reconsider."

It clearly is not an investment decision. In fact, in all my time covering private equity, this is the first time I believe I've ever seen a private equity firm decide to sell a company, particularly a large company, for something other than investment. Because clearly this is not a good time to sell a gun company. They clearly believe that whether it is from pressure from investors like the Teachers Pension, which apparently called Cerberus yesterday afternoon after our original report and from other investors.

Either they're getting pressure on this fund and they're probably concerned they won't be able to raise more money in the future from these pensions and these endowments, et cetera, if they don't do something here.

Plus, one final thing, the founder and CEO of Cerberus, a guy named Steve Feinberg, his father happens to live in Newtown.

LEMON: Dan Primack of "Fortune" broke this story. Dan, thank you very much. If you get new information, follow up with us. We appreciate it.

Brooke, a lot of people are going to be checking to see if -- I'm sure if they have investments in these companies and as you said, not a good time now to have -- to be a company that makes guns, especially automatic weapons.

And, you know, ammunitions companies as well. So we'll be following up on this story, these stories a lot, I'm sure.

BALDWIN: Different vain, I know something a lot of the crews in Newtown are seeing are hearses drive through town and there is this tough gut wrenching task of burying these children, the 6 and 7-year- olds.

Coming up next, I talk to the first responders in Newtown who helping protect these families, who want privacy at the cemeteries. We're respecting the privacy, but I spoke to these two guys last night about this whole process, this very difficult process of burying these children.

(COMMERCIAL BREAK)

BALDWIN: As parents this week in Newtown are laying their 6 and 7- year-olds to rest, many first responders there, they're volunteering their time this week at the cemetery, protecting the families, helping ensure they get the privacy they deserve.

And I spoke last night to these two wonderful volunteer firefighters in Newtown at Hook and Ladder, one of whom is actually the father of a first grader, and they shared with me just a little bit of what they have seen and experienced in the last 24 hours.

(BEGIN VIDEOTAPE)

BALDWIN: How do you describe the funeral of a 6 and 7-year-old?

UNIDENTIFIED MALE: It's rough. It's rough. Look how sad a funeral is when it is an elderly person. This is somebody that's not yet to that point.

BALDWIN: Are you angry or more sad?

UNIDENTIFIED MALE: That's a good question. If you ask my wife, I'm angry. I think I'm pretty sad. This is devastating. But according to her, I'm pretty angry right now.

BALDWIN: What do you go home at night and tell her?

UNIDENTIFIED MALE: I tell her I love her. She actually works in the school system, so she knew early on that there was something going on to when they went into lockdown and the other school.

(END VIDEOTAPE)

BALDWIN: He also told me about his first grader who doesn't go to Sandy Hook, but who he saw on Saturday, and would not let go. I know a lot of you are wondering how you can help the people who are affected by this horrendous tragedy in Newtown. You can.

We have put a list of charitable organizations on our website. All you have to do is go to cnn.com/impact, cnn.com/impact for ways you can help. Don, I know it is amazing watching the outpouring, you know.

You're there at the memorial. There are multiple memorials in and around Newtown. People mailing packages and letters and wreaths, just trying -- just sort of -- just showing that they care.

LEMON: Yes, absolutely, Brooke. As you know, you've seen it, 26 of everything. 26 candles, 26 teddy bears, 26 pieces of candy here, 26 pieces of little candelabras, people buy flowers with 26 flowers in them.

So it's really amazing to see the outpouring. You know, Brooke, just before we went to break, you were talking about the funerals that are being had and sadly this is the reality of it.

As I drove in here today, to come to this story, I passed a funeral procession. All the cars in my lane pulled over and we watched the funeral procession go by in the opposite way and you could see the blank stares of the faces of the people inside those cars.

And as we were standing here as well, another funeral procession went by and my producer and I looked up and I hate to say this, you can see, right Raylynn, a white casket, very tiny casket in the back.

Reality is setting in for these folks who were just about to have a Christmas and now they are having to deal with laying their loved ones to rest. And the man responsible for doing all of it, 20 years old, 20 years old, we're finding new information about him from the people who knew him.

(COMMERCIAL BREAK)

BALDWIN: Richard Engel, the chief foreign correspondent for NBC News and his production crew, they are free today after being held for five days inside Syria. Engle spoke with reporters in Turkey shortly after he and his team escaped during a deadly fire fight between their kidnappers and Syrian rebels. Take a listen to this.

(BEGIN VIDEO CLIP)

RICHARD ENGEL, CHIEF FOREIGN CORRESPONDENT, NBC: The last five days were very difficult. We're very happy to be out. We're very happy to be back in Turkey. We love being here. We love this country and we appreciate all the help. The last five days are some days that we would rather forget.

(END VIDEO CLIP)

BALDWIN: They would like to forget them. We can tell you that Engel and his team vanished Thursday after crossing into northwest Syria from Turkey. And though no one claimed responsibility for this kidnapping, Engel said he thinks his captors were part of this militia loyal to Syrian President Bashar Al Assad, and trained by Iran's Revolutionary Guard.

He also said they planned to trade the journalists for hostages held by Syrian rebels. Engel spoke again today about the ordeal.

(BEGIN VIDEO CLIP)

ENGEL: Then they took us to a series of safe houses and interrogation places, and they kept us blindfolded, bound. We weren't physically beaten or tortured. It was a lot of psychological torture, threats of being killed. They made us choose which one of us would be shot first.

And when we refused, there were mock shootings. They pretended to shoot Gazy several times and when you're blindfolded, and told -- and then they fired the gun up in the air. It can be very traumatic experience.

And at the end of this, we were being moved to yet another location in the -- around 11:00 last night, local time. And as we were moving along the road, the kidnappers came across a rebel checkpoint. Something they hadn't expected.

And so we were in the back of, like, when you think of as a minivan, and as we were driving along the road, the kidnappers saw this checkpoint, started a gunfight with it, two of the kidnappers were killed. We climbed out of the vehicle and the rebels took us, we spent the night with them, we didn't get much sleep.

(END VIDEO CLIP)

BALDWIN: Again, Richard Engel speaking out today. CNN wants you to know, we got word last Thursday night that Richard Engel and his team were missing. NBC news asked us not to report the news and, of course, we complied with that request.

CNN has complied with such requests before and likely will again. Oftentimes in first couple of days after a non-combatant goes missing, be it a journalist, a member of a nongovernment organization or a company employee, CNN is asked, as are other news organizations, to delay reporting the story.

The reason is so that fact finding and negotiations to free them can take place before their capture becomes a worldwide news event. Hostage negotiators say that once the global spotlight is on the missing, the hostages value -- the value of these men and women making it much, much more difficult to negotiate their freedom.

Hawaii and the rest of the nation remember a gentle giant of the U.S. Senate.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: With a heavy heart, it bid aloha, aloha to my good friend, colleague and brother, Daniel Inouye.

(END VIDEO CLIP)

BALDWIN: You will be excused if you didn't know that before his death yesterday. Hawaii's Daniel Inouye ranked third in the line of presidential succession. He was the Senate pro tem, the senior member of the Senate's majority party, having served 50 years during his half century in office.

Inouye made many, many friends, lots happen, but made remarkably little noise. Initially barred from serving in World War II because of his Japanese roots, Inouye petitioned to get himself into the army, wound up losing an arm, fought with such distinction that he earned the Medal of Honor.

He was first elected to Congress back in 1959, the year Hawaii became a state. And earned such respect he was named to committee that investigated Watergate, investigated the Iran/Contra.

Also rose to the top of the powerful Senate Appropriations Committee, which helped him steer federal dollars to his beloved Hawaii. He died of respiratory failure. His office says his final word was aloha.

And want to take you back to Newtown, Connecticut. Don Lemon is standing by. Hi, Don.

LEMON: Hi, Brooke. Want to show you some things that are going on here. Some ladies showed up and they're putting candles in the dirt, sticking them down in the ground. People are writing cards as well as they drop off teddy bears.

Here is one to Catherine Hubbard, who is one of the victims, one for Emilie Parker. I can see inside, without even opening it, I can see there say snowman on it, a Christmas card for them.

One here again for Benjamin Wheeler as well, one of the victims as well and there is also -- more things in there, not exactly sure what it is and I'm not the one to open it up. I'm sure all of this, if the rain doesn't take it way, will be given to the family members of the victims in time, in time.

Because it is going to take a while before they can even be able to accept and receive all of this. We're going to have more from Newtown and with my colleague as well, Brooke Baldwin, back in Atlanta, right after this break.

(COMMERCIAL BREAK)

POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: We're talking about getting the most from your money. We all want to do that. With me this hour, Lynette Khalfani-Cox and David Novick. Lynnette, take a listen to this question.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What do I have to do to get 10 percent on my money?

(END VIDEO CLIP)

HARLOW: Wouldn't we all like to know? Wouldn't we all like to know?

LYNNETTE KHALFANI-COX,FOUNDER, ASKTHEMONEYCOACH.COM: Tall order. I'll be nice. You have to have realistic expectations, so far. I saw he was an elderly gentleman. If you're used to getting a couple of percentage points, you have to take on more risk.

There is no way to do that and it is not guaranteed. You want to look at things like stocks, growth stocks, mutual funds are an option, of course. But recognize there really is a trade-off between risk and reward.

The higher the returns that you want to generate, 10 percent is pretty high in this market, the more risk you have to be willing to take on.

HARLOW: Maybe he'll get 10 percent on 25 percent of his investments and be conservative with the rest.

COX: Right.

DAVID NOVICK, CERTIFIED FINANCIAL PLANNER, PROMETHEUS CAPITAL MANAGEMENT: That's an option. The other thing you need to be careful about is if he really wants to be aggressive and invest in stocks, he needs to understand that it is something that has to be for the long- term.

And that he needs to hold it and understand that maybe going up and down a bit in a given year, if he's comfortable with that, it is possible to get closer to what he wants. If he's not, it is probably not likely.

HARLOW: All right, thank you, guys. Appreciate it. If you have a question you want our experts to tackle, just upload a 30-second video with your question to ireport.com.

(COMMERCIAL BREAK)

LEMON: We have been telling you the stories of the people who lost their lives here, but the man the police believe is responsible for all of this, the shooter, we're learning new information about him. And CNN's Susan Candiotti spoke with one of his former classmates.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): Among the steady stream of people drawn to this memorial honoring victims, a former schoolmate of the alleged killer.

ALAN DIAZ, GUNMAN'S FORMER SCHOOLMATE: Because you know he is a very big part in this event. I'm not really sure what to think of it.

CANDIOTTI (on camera): Sadly, he is the reason for it.

DIAZ: Yes.

CANDIOTTI: Alan Diaz may have been as close as anyone could come to being a friend of Adam Lanza when he was a sophomore in Newton High School and Diaz was a freshman in 2008.

DIAZ: He was a very intelligent person. He really was. The way he acted around other people was very withdrawn and really quiet.

CANDIOTTI (on camera): A little different.

DIAZ: Yes.

CANDIOTTI (voice-over): They were in the high school tech club together and spent a lot of time on computers. Adam had his own style of dressing.

DIAZ: He had the stereotypical nerd look like khaki pants, belt, tucked in shirt. He even had a little computer case instead of a backpack like everyone else. He had a pocket protector that he had pens in.

CANDIOTTI: He doesn't know whether Lanza was bullied. He kept to himself.

DIAZ: We all kind of new that like, you know, he had problems socially. And we kind of had a feeling that there might have been something wrong with him, but obviously we never asked. We never thought it was our place to do so.

CANDIOTTI: Back then his schoolmates' mom once invited all his friends to the house to play video games. One was "Star Craft," kind of a war games in space. Another was "War Craft 3" where as the ad says survival is a matter of strategy.

DIAZ: "War Craft 3" was really fun. He was really into games. As I recall he actually picked up on "Star Craft" really quickly.

CANDIOTTI: When Lanza left high school and was home schooled, Diaz lost touch. But he ran into Lanza's mother, Nancy, about two years ago.

DIAZ: I remember her like mentioning that he started going to the shooting range with her. My initial response to that was I never really imagined Adam wanted to ever hold a gun.

CANDIOTTI (on camera): Why do you say that?

DIAZ: I don't know. Maybe because like in my mind I don't imagine shy quiet people going to a shooting range. I never really can make that association.

CANDIOTTI (voice-over): Investigators are tracking how often Lanza had been to gun ranges. They don't know how many so far. They have proven he has been to target practice about six months ago and for several years. Mother and son went at least once together.

Alan's older sister went to school with Lanza's older brother and she was friends with her mother who went to her bridal shower last year.

AMANDA D'AMBROSE, GUNMAN'S FORMER SCHOOLMATE: Why her? You know, she was just -- it was a shock. She was always a happy person.

CANDIOTTI (on camera): Do you now think of him as an evil person because of what he did?

DIAZ: At one point he was a good kid. The events that he did that day may have been evil, but before then he was just another kid.

CANDIOTTI (voice-over): Until something made him snap. Susan Candiotti, CNN, Newtown, Connecticut.

(END VIDEOTAPE)

LEMON: All right, Susan. And, Brooke, you know, people, the more they hear about the shooter, the more details, even us, we still don't understand why. Before I go back to you in Atlanta, I want to say you saw this, Brooke, people just walking up to us and you walked up to us. Tell me your name again.

UNIDENTIFIED FEMALE: My name is Jamie Carera.

LEMON: You're overcome. How long have you been out here?

UNIDENTIFIED FEMALE: I've been out here all day just trying to leave a little something at each memorial for the kids and for the victims.

LEMON: Yes. What did you want to say to us?

UNIDENTIFIED FEMALE: I just -- I just can't believe that this kind of a tragedy could happen and just walking through the town, I mean, everything is so beautiful. And there is so much love here, but it's so hard.

And I have friends that live here. And thank God their kids are OK. But this is just mind blowing. And the most that I can do is just come down and show support for anybody who needs anything.

LEMON: Well, thank you.

UNIDENTIFIED FEMALE: Thank you. LEMON: Thank you. We appreciate the love you're showing for everyone.

UNIDENTIFIED FEMALE: Thank you so much. Thank you. God bless you guys. You're doing a wonderful job.

LEMON: Thank you very much. We'll be right back.

(COMMERCIAL BREAK)