Return to Transcripts main page
CNN Newsroom
NSA May Declassify Some Info; Turkish Riot Police Storm Park; Colorado Springs Residents Returning Home After Deadly Fire Eases; Cancer Charity Rip-Off; Iranians Pick New President; $3 Million Bank Error; Christie On Evacuating Ahead of Sandy; High Cost of Natural Disasters
Aired June 15, 2013 - 17:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: You're in the CNN NEWSROOM. I'm Don Lemon. Thank you so much for joining us.
We have big developments in the controversy over your private data and secret government surveillance. Fans of Edward Snowden are showing their support on the streets of Hong Kong.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MAN: We support Edward Snowden!
UNIDENTIFIED MAN: Snowden is our brother!
(END VIDEO CLIP)
LEMON: The 29-year-old who leaked NSA documents revealing the top secret program is believed to be still hiding in Hong Kong.
And this, the NSA may soon declassify key documents on terror plots prevented by the government surveillance program. Plus, Facebook and Microsoft opening up about how often the government asked them to turn over users' data.
CNNMoney Tech correspondent Lorie Siegel is here with me in New York and Rene Marsh is tracking the story in Washington. Rene, we're going to start with you.
Let's talk about this first. Facebook and Microsoft are revealing how often the government asked them to turn over users' private information. Facebook says, they've gotten 9,000 to 10,000 requests in the last six months of 2012. Microsoft says, it got up to 7,000 requests in that same time period. So, Rene, you're hearing the NSA may soon declassify files on some terror plots prevented as a result of the government surveillance programs. How fast can that happen, Rene?
RENE MARSH, CNN NATIONAL CORRESPONDENT: Well, I can tell you this, Don, the NSA has been feeling a lot of pressure from lawmakers who say that this surveillance program, it violates American civil liberties, so now in order to prove that this method of tracking Americans' phone calls and collecting data from tech companies actually helped prevent these terror plots, the head of the very secret agency, the NSA, is promising to declassify information about specific terror plots that were thwarted.
Now, Senator Dianne Feinstein, she says that that information could be released as soon as Monday, so that's right around the corner. That's what we're expecting moving looking forward but what's new today is tech companies revealing details on how many times they've been asked to turn over their users' information to government agencies. That includes the NSA. The DOJ, Department of Justice, they said in a statement that the publication of these numbers will show that an extraordinarily small number of accounts are subject to legal process.
Now, the companies, they were not allowed to say what kind of data is being handed over and whether that includes things like pictures and conversations. But CNN's law enforcement expert, he explains how this data could be used.
(BEGIN VIDEO CLIP)
TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: What would that tell you as an investigator? Who are the friends? Who else is seeing that? Who are these pictures or messages intended for? What is the -- an assessment, if you will, or profile of the individual, is he narcissistic, is he psychopathic?
(END VIDEO CLIP)
MARSH: All right. Well, Don, we can tell you that these tech companies they were under some limitations when they released this information. They were also not allowed to say how many requests involved were National Security requests versus other criminal investigations -- Don.
LEMON: All right, Rene Marsh, stand by. I want to talk now about -- more about this first of its kind disclosure, CNN's Lorie Siegel is here with me now. Lori, do we know the depth of these requests?
LORI SIEGEL, CNNMONEY TECH CORRESPONDENT: We're just beginning to wrap our head around this. Facebook was a little more detailed than Microsoft. They say some of the data helped a sheriff find a missing child, it helped thwart, you know, any kind of terrorist threat. But Microsoft we don't really know that much about. But what we do know and I think the question we need to be asking are how sweeping are these requests. Facebook might get between 9,000 and 10,000 requests but what does one request entail that we don't know.
You know, we heard three months of cell phone data, that was one request from the NSA, so now what we're looking at that and were trying to wrap our head around that, I will say that we were able to confirm with Facebook that they comply with about 79 percent of these government requests, so there is that kind of pushback, too.
LEMON: Yes. So, how in-depth are the requests and exactly what is a request, what's in there, right?
SIEGEL: Exactly. LEMON: What is Silicon Valley saying about this? Any reaction?
SIEGEL: You know, I've been on the phone with investors, with tech companies all week, and in Silicon Valley, people are saying, this is a really big deal. But it's almost divided. There are some that are saying, this is a no-brainer that this is going to happen, and then there are other founders I spoke to Alexis Ohanian who is the founder of Reddit who say, well, this is a big deal. Listen to what he had to say.
(BEGIN VIDEO CLIP)
BRUCE K. TARAGIN, BLUMBERG CAPITAL: I would say our perspective overall as the early stage investor in technology is fundamentally privacy is dead. Today there are nine companies participating. I suspect there will be 1,000 companies that are in a position to participate, you know, ten years from now.
ALEXIS OHANIAN, REDDIT FOUNDER: It will come up a lot sooner for founders and founders maybe who were thinking, you know, move fast and break things are now going to be thinking we'll move fast and break things but, you know, don't break the constitution. And I think this is an opportunity for us as citizens to really start to draw a line in the sand for what is off limits, what is still private even in this digital age.
(END VIDEO CLIP)
SIEGEL: If there's any takeaway is that Silicon Valley says there needs to be a lot more transparency, you see Google pushing back with their statements, you see Facebook putting this kind of information out there and now we all kind of know that this could affect us, it might not, these could be sweeping requests, but we're now more aware for the first time in a long time.
LEMON: Yes, at least we know. All right, Lori. Thank you very much. Lori Siegel here in New York and also Rene marsh in Washington.
Let's move on now because we have some developments to tell you about. Turkish authorities finally ran out of patience with protesters in Istanbul today. Riot police stormed the park where demonstrators were camped out. Making good on their threat by the prime minister to kick them out if they wouldn't leave. Now the situation is growing more tense.
I want to go to CNN's Arwa Damon now, she is with me from Istanbul. Arwa, what's going on right now?
ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we're on the street that is around a two-three-minute walk from Taksim Square, Gezi Park itself and just take a look at what is going on here. Demonstrators have set it on fire. The riot police are up the street and they have been clashing with demonstrators down the various small alleyways, they've had rocks, bottles thrown at them. They have been responding in kind. Firing a fair amount of tear gas. So, we can hear the tear gas being fired. Now, once more down the street. And you can just get a sense of the sheer and total chaos that this creates.
The crowd here is probably around a few thousand at this point. Whenever that tear gas is fired, it causes something of a mini stampede. And this is the people's reaction to the government's action. The government may have run out of patience and decided to go into the Gezi Park, but the Turkish population is (INAUDIBLE) the Turkish population that opposes the prime minister is also equally run out of patience with this government.
Who they say has been trying to restrict them, get involved in their way of life, for quite some time now. Because, remember, the Gezi Park demonstrations are not just about the park, there's a lot of other core issues here, core grievances when it comes to what it is that the people want to see the government do -- Don.
LEMON: Arwa, I know it's pretty tough to hear there, but this started as a protest over a development. It turned into a movement against the prime minister. Any chance here that the opposition is going to back down?
DAMON: At this point in time, no. I mean, look at this scene around me. This is just hours after the riot police went in and cleared out Gezi Park, the more actions taken by the government, the more violence by the riot police, the angrier and more determined people become. They may not basically be in the park right now, but they are most certainly are continuing the very acts of civil disobedience. People right now are chanting everywhere, Taksim, everywhere is the resistance. And a lot of people who are involved in this, Don. This is something that is very interesting.
They were apolitical until this all began. This is not a country, especially not a country that has been none for being very involved in politics. And now we're seeing this. So, on the one hand beginning to recognize their political voice, their political powers, and they're trying to capitalize on the momentum that they had following the Gezi Park demonstrations and everything that transpired there and really move this into something bigger, to make sure that the government does, in fact, meet their demands -- Don.
LEMON: Arwa, Arwa, we're having trouble hearing you. Is there any way you can move the microphone closer to you, it may be difficult to do at this point. What are we hearing there? Are we just hearing protesters beating on -- is it beating on garbage cans and drums, or are we hearing gunfire, what is that?
DAMON: Yes. Yes. They moved forward a bunch of garbage cans and some bits and pieces of wooden furniture. They've set that on fire and they are pounding on the garbage cans. This is a fairly sizable crowd here, Don. And these are people who for the last few hours have been clashing with the riot police up and down these various, excuse me, alleyways that exist here. And we were seeing them being largely driven off the street. They've only managed to come back in the last half hour or so. The riot police down the street. I can't see them very well from where I am now.
You can still feel the sting of the tear gas in the air right now. And as I was saying, you know, this is not a country that's known to have a very political population, but a lot of people are so enraged at the government's attitude and how it has handled Gezi Park demonstrations and are finding their political voice. And this type of action that happens. A lot of these demonstrators are saying that they want to somehow capitalize on the momentum they believe they have from the Gezi Park demonstrations to turn it into some sort of a movement that is then going to continue to demand accountability from this government that they believe is becoming increasingly authoritarian and trying to meddle in just about every single aspect of their way of life -- Don.
LEMON: All right, we'll get back to you, Arwa Damon, you can see Awa Damon in Taksim Square and these riots have been going on throughout the week. We have been seeing that protesters upset with the government there and they were trying to figure out early what to do in Gezi Park to get the protesters out. Again, the protesters have started back up and now we're being told that they're using water cannon and other devices to try to get those demonstrators off the street. We'll get back to Arwa Damon if there are any more developments in this story out of Turkey.
In the meantime a terror attack in Quetta, Pakistan unfolded in devastating fashion.
A bomb tore through a bus killing at least 11 women, 20 more people were injured in that attack, but it was just the first for that city. Next militant's stormed the hospital where the wounded were being treated. Before that siege was finally ended, three security force members and Quetta's deputy commissioner were killed along with three nurses caught in the cross fire. Four gunmen were also killed in that.
Iran has declared the winner of its presidential election, it is moderate cleric Hassan Rouhani. He won more than 50 percent of the vote. His campaign began to gather steam last month when he dared to accuse the state media of censorship and lies and criticized the government's tight grip on security. Iranian officials say voter turnout was high and you'll going to hear more from Rouhani, who he is and how the election may affect us right here in the United States and our relationship with Iran, that's later on in the hour right here on CNN.
Next up, returning to ruins, almost 500 Coloradans run out by wildfires are allowed to see where their homes once stood now and a charity to help kids with cancer gets millions, but gives little to kids. Special CNN investigation will make you curious.
(COMMERCIAL BREAK)
LEMON: Thousands of Colorado residents are watching and they're waiting today hoping that good weather conditions will continue to get firefighters the upper hand. The Black Forest fire now 45 percent contained and hasn't grown any larger in size in the last day. Fire crews are working to put out hot spots amid 473 destroyed homes.
CNN's George Howell talked to families who just got back to see what's left of their homes.
(BEGIN VIDEOTAPE)
GEORGE HOWELL, CNN CORRESPONDENT (voice-over): The grass is still green. His home still standing. And Mike Bossert is back to his regular routine since the mandatory evacuation for this neighborhood has been lifted.
(on camera): What's it like to be back?
MIKE BOSSERT, RESIDENT OF COLORADO SPRINGS: It's good to be home. You know, it's good to be home. We were out for just a couple of nights. We left during the voluntary on Wednesday and then they put a mandatory on Thursday night which was a little nerve-racking but, you know, our boys and my wife were able to pack some things up and take things out, so we feel pretty comfortable with, you know, leaving when we did.
HOWELL (voice-over): Just down the road it's an entirely different story for Trevor Miller who still can't return home.
(on camera): Yes, I see everything packed up there in the back.
TREVOR MILLER, RESIDENT OF COLORADO SPRINGS: Yes, everything in the back is my brother and I's stuff. We had three other cars, too, that left our house and those were all packed with our family's supplies. We had about an hour to grab everything that we wanted or needed before leaving our house.
HOWELL (voice-over): Some 38,000 people were forced to evacuate earlier this week as firefighters struggled to protect property and hold the line against the wildfire. So far, more than 15,000 acres have been scorched, but firefighters have been able to gain ground. Late Friday, Mother Nature stepped in with much-needed rainfall that Colorado Governor John Hickenlooper says, had a significant impact.
GOV. JOHN HICKENLOOPER (D), COLORADO: That rain just dropped 10 or 15 degrees off the temperature, plus, you know, it's the firefighter's best friend.
HOWELL (on camera): You got wet yourself here, yes?
HICKENLOOPER: Yes. I was standing right there. You know, it's the first time, my grandmother will always say, you know, you're too stupid to come out of the rain. I was too happy to come out of the rain.
HOWELL (voice-over): Officials announced Saturday they didn't lose any structures or lose any ground overnight. The fire is now 45 percent contained according to officials that's up from 30 percent containment a day ago, proof that firefighters are gaining the upper hand.
RICH HARVEY, RESIDENT COMMANDER FOR THE BLACK FOREST FIRE: We want the fire to come out and fight now. We're ready. We're staffed. We're equipped. Show yourself, we'll take care of it. (END VIDEOTAPE)
LEMON: George Howell joins me now live from Colorado Springs. George, what are the concerns now in the evacuated areas?
HOWELL: Well, it comes down to this, Don, first of all, we are seeing some of these areas where the mandatory evacuation has been lifted. Others where it still remains in place. And we have weather coming in. So, what is the concern? First of all, as the weather comes in, we'll get rainfall. You see over there? That dark cloud? That is much-needed rainfall, that could help just as much today as it helped yesterday.
However, if we get lightning, lightning could start new fires. That's always a concern. Right now the winds are picking up a bit as well, so really we have to watch and wait to see what the weather does, but these firefighters are still doing the job, all the good work of trying to knock this fire out -- Don.
LEMON: George Howell, Colorado Springs. George, thank you very much.
Firefighters are still on the scene of a huge fire at an Indianapolis recycling company. The billowing black smoke could be seen for miles. There have been reports of several explosions inside the building. No word on what caused the blaze.
LEMON: In Louisiana, with the investigation of one chemical plant explosion not even wrapped up, a second blast at a second Louisiana plant kills one person and injures eight. This happened last night in South Louisiana, in Donalsonville. The plant manager says the explosion happened as nitrogen was being off-loaded from a tanker truck.
You've heard how dangerous it is to use your phone while driving. Now you see it. Our CNN correspondent got behind the wheel and tried to multitask. Didn't go so well.
(COMMERCIAL BREAK)
LEMON: Welcome back. An Egypt Air headed for New York City was forced to land in Glasgow, it was 777, it was forced to land from Glasgow, Scotland after a suspicious note was found on board. The BBC reports, one of its producers found a note in the plane's bathroom with the words, "I'll set this plane on fire" and then there was a seat number with it. A British fighter jet escorted the plane to Glasgow's Prestwick Airport, all passengers have been safely removed from the plane, no arrests have been made, the FBI says it is monitoring the situation now.
We can all relate dozens of distractions during even just a short jaunt in the car but just as more drivers say, yes to hands-free technology, new research show that the very thing that was supposed to safely keep us connected could be just as dangerous.
CNN's Chris Lawrence tries to multitask behind the wheel.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE CNN PENTAGON CORRESPONDENT (voice-over): We all thought hands free would allow us to combine the morning commute with the demands of staying connected.
YOLANDA CADE, MANAGING DIRECTOR, AAA: Making the decision to talk hands free and interact with this technology does pose a considerable risk.
LAWRENCE (on camera): Right here?
(voice-over): But I wanted to get a firsthand look.
(on camera): Let's drive.
(voice-over): So, researchers wired me up to see if I could still drive.
UNIDENTIFIED MAN: So this is just sort of measuring your background mental workload.
LAWRENCE: Making hands free calls --
(on camera): Good. I'm out of here on the driving test.
(voice-over): And using new voice-to-text technology.
UNIDENTIFIED MAN: We should get together sometime soon. OK. What would you like to say?
LAWRENCE (on camera): How about Sunday?
(voice-over): One message seems simple enough.
(on camera): Next message.
UNIDENTIFIED MAN: Text from Courtney.
LAWRENCE (voice-over): Until you realize they just keep coming.
UNIDENTIFIED MAN: Your next message is loading. Message from Psychology Survey, text from Victoria. Are you busy tonight?
LAWRENCE: Does 8:00 work for you?
(voice-over): And the more I tried to multitask, the less my brain could do.
CADE: How your driving performance deteriorated, your brain activity really, really was reduced and transformed, during the process of trying to perform tasks behind the wheel.
LAWRENCE (voice-over): It's hard to disconnect. I get it. My daughter's in day care and catches every cold known to man, my wife works ten hours a day, and she's nine months pregnant, and my bosses at CNN, well, they want what they want when they want it. So, when can I put this down?
UNIDENTIFIED MAN: We also collected your brain waves while you were driving.
LAWRENCE (voice-over): And those prove that even when I wasn't using my hands, my brain was still engaged in conversation.
UNIDENTIFIED WOMAN: Siri, do I have any text messages?
LAWRENCE: And the automakers and app designers are not making it easier, adding features like Facebook and Twitter to our dashboards.
CADE: This really is a serious looming public safety crisis for us.
LAWRENCE (on camera): When I'm trying to look out for the red and the green light and listen to the message and keep my eye on the pylons, I mean, it was tougher than I thought it was.
Chris Lawrence, CNN, Washington.
(END VIDEOTAPE)
LEMON: A shocking CNN investigation. If you've ever donated money to a charity, you have to see this. Millions of dollars donated, but charity owners, well, they are getting lavish salaries, while the kids get very little. That's next.
(COMMERCIAL BREAK)
LEMON: If you donate your hard-earned money to charity, you'll want to hear the startling details of this story. CNN investigative correspondent Drew Griffin along with the "Tampa Bay Times" investigated a Tennessee family that controls five cancer-related charities. The charities promise to use your money to help people with cancer, but after learning the people who run the charities make six-figure salaries, we find out just how much of your money is going to help these patients. Here's Drew.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT (voice-over): Drive down this country roads outside of Knoxville, Tennessee, and into this small industrial park and you'll find the headquarters of a family conglomerate of cancer charities that return lavish salaries to their owners but according to their own tax records donate very little to dying cancer patients and the last thing the people running this charity want to do is answer questions.
UNIDENTIFIED MAN: Don't -- don't turn your camera on me. OK?
GRIFFIN: Across the country, in Mesa, Arizona, another outpost of the conglomerate, it's called the Breast Cancer Society. Its CEO and executive director, the man escaping in the truck, James Reynolds, Jr.
(on camera): Excuse me, sir, Mr. Reynolds. Hey, excuse me, Mr. Reynolds, right here, buddy, Mr. Reynolds. Hi, hi, can you stop for a second? No, where you going Mr. Reynolds? Mr. Reynolds.
(voice-over): Back in Knoxville, there is another cancer charity, the Children's Cancer Fund of America, and this one run by yet another member of the family, Rose Perkins.
(on camera): Hi. Is Rose Perkins in?
UNIDENTIFIED WOMAN: She's not available and she's not doing any interviews.
GRIFFIN: Why wouldn't she do us any interviews? She's running a charity here for kids with cancer. Right? That seems like a good idea.
UNIDENTIFIED WOMAN: It is. That's what I have been just told to tell you she's not doing interviews.
GRIFFIN: Can you tell us what you guys do, any positive things you do with the money you collect?
UNIDENTIFIED WOMAN: You can send your questions to her e-mail.
GRIFFIN: OK. What is that e-mail?
UNIDENTIFIED FEMALE: And we'll answer it.
GRIFFIN: If you were asking for money, what would you say you do with your money?
UNIDENTIFIED FEMALE: We help children with cancer.
GRIFFIN: How do you do that?
UNIDENTIFIED FEMALE: What do you mean, how do we do that? We help children with cancer.
GRIFFIN: Yeah, how do you do that?
UNIDENTIFIED FEMALE: We provide them --
(CROSSTALK)
GRIFFIN: Financial assistance --
(CROSSTALK)
UNIDENTIFIED FEMALE: If you have any other questions, please send them to her e-mail.
GRIFFIN: OK, my question --
(voice-over): Rose Perkins did e-mail us and said, her charity "has a clear conscience, because we feel we're making a good difference in people's lives." But also told us an interview is "not something we can consider." That may be because of the questions we'd like to ask her and the other members of her extended family, who are essentially making a living on your donations.
Rose Perkins, the CEO of the Children's Cancer Fund, is paid $227,442 a year. Her ex-husband, James Reynolds, Sr., is president and CEO of Cancer Fund of America. He gets paid $236,815. And James Reynolds Jr., president and CEO of the Breast Cancer Society, has a salary of $261,609.
It's money that comes from donors like you who, in 2011, sent these three charities $26 million in cash. How much of those donations actually went to helping cancer patients? According to the charity's own tax records, about 2 percent in cash. Example, the Cancer Fund of America raised $6 million through its fund-raising campaign in 2011. And gave away? Just $14,940 in cash.
But that is not what you would hear from the telemarketers hired by the Cancer Fund of America, run by James Reynolds, Sr.
(BEGIN AUDIO FEED)
UNIDENTIFIED FEMALE: OK, how much of my $10 will go -- who was this to?
UNIDENTIFIED TELEMARKETER: Cancer Fund of America supports services. 100 percent of your donation goes to the fund where we purchase medical supplies for these cancer patients. We also do the hospice care for the terminally ill. And we supply over 600 hospice offices with medical supplies all over the United States.
UNIDENTIFIED FEMALE: But how much of my $10 will go to --
(CROSSTALK)
UNIDENTIFIED TELEMARKETER: It goes 100 percent to the charity itself. And I'm calling directly from the charity and not a telemarketing agency.
GRIFFIN: Oh, that's great, then.
(END AUDIO FEED)
GRIFFIN (voice-over): According to the Iowa attorney general's office, which gave us these recordings, those phone call statements are one great big lie. The callers were telemarketers being paid to make the call. The state of Iowa fined the telemarketing company $35,000 for making false representations.
As for donations to other charities? The Cancer Fund of America claimed, on its 2011 tax filings, it sent $761,000 in so-called "gifts in kind," not actually cash, to churches, some hospitals and other programs around the country.
When we called or e-mailed those other charities to check, many of them said they did get something, things like these supplies. But several of the groups told us they never heard of the Cancer Fund of America or don't remember getting a thing.
The cancer fund also takes credit for serving as a middleman, brokering transfer of another $16 million worth of "gifts in kind" to individuals and other charities, many of them overseas. Those contributions double up, both as revenue and donations on the same tax forms.
Back at the Cancer Fund of America's corporate office, even the chief financial officer, who, by the way, has a salary of $121,000, couldn't explain what was happening.
(on camera): We just have all these -- North Mississippi Medical Center, never heard of you. Yolando Barco Oncology Institute, nothing.
UNIDENTIFIED MALE: It's one of the ones we looked up, but again, you have to talk to him.
GRIFFIN (voice-over): The "him" is James Reynolds, Sr, the founder who finally told us in an e-mail his board thought it unwise to talk to CNN, even though in a different e-mail he called the news of phantom donations, quote, "most disturbing."
As for his son, James Reynolds Jr, and his charity in Arizona?
(on camera): Hey, how are you?
UNIDENTIFIED FEMALE: The camera needs to stay outside.
GRIFFIN: OK, can he stay right there? Is Mr. Reynolds here?
UNIDENTIFIED FEMALE: I'm sorry, he's not in right now.
GRIFFIN (voice-over): The public relations officer for the Breast Cancer Society, Christina Hickson, who, by the way, is married to James Reynolds Jr, sent us e-mails telling us the Breast Cancer Society's "guiding mission is to provide relief for those that suffer from breast cancer" and that "we've made a difference in the lives of tens of thousands of men and women," but declined our request for an on-camera interview.
And when our camera found James Reynolds Jr, he made sure we got the message, with a single finger salute.
Drew Griffin, CNN, Knoxville, Tennessee.
(END VIDEOTAPE)
DON LEMON, CNN ANCHOR: Iran has a new leader. Does this election today make relations with the Islamic Republic better or worse for the United States? We'll tell you more about the new president next.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: To buy this house just a few weeks ago, you might have locked in a mortgage at 3.5 percent but rates may never be that low again.
GERRI DETWEILER, DIRECTOR OF CONSUMER EDUCATION, CREDIT.COM: If you are either in the market to buy a house or you've been on the fence about refinancing, I would say do not wait.
ROMANS: Mortgage rates are still historically low but now a sudden move higher, up more than half a percentage point in six weeks.
BOB MOULTON, PRESIDENT, AMERICANS MORTGAGE GROUP: The rates went up very dramatically. They went up very quickly.
ROMANS: Ironically, an improving economy is to blame.
MOULTON: Unemployment is down. The stock market is doing really well. Median home prices are up. People are feeling better. They're out there buying again. So the economy does well, you will see a rising-rate environment.
ROMANS: And you will see it in your monthly payment. At 3.5 on a $250,000 home with 20 percent down, you pay $898. The same 30-year fixed mortgage will cost you 954 bucks at 4 percent. That's $56 more a month or $672 a year. Down payment, credit score and income determine the rate you'll pay.
MOULTON: Borrowers that are getting the best rate are putting 20 percent to 25 percent down. They have income that is documentable so they're providing W-2s and federal tax returns and they have an excellent credit score, something over 700 or 720.
ROMANS: A quick closing date also helps.
MOULTON: You get your best rate from a lender if you lock in for 30 days. Standard to lock-in for 60 days and the longer you go out. The more you go out, the more expensive it will be.
ROMANS: Ask your lender about a float-down provision so your rate could be adjusted lower if rates do slip again.
If you're still looking for the right house, make sure you're preapproved for a mortgage. And pay down your debt while interest rates on auto loans and credit cards are still low.
DETWEILER: This is a time to take advantage of those rates. It means be as aggressive as you can about paying down your debt, because once they start to rise, there won't be a stop.
ROMANS: No stop. And the lowest mortgage rates in history may be gone for good.
Christine Romans, CNN, New York.
(END VIDEOTAPE) (COMMERCIAL BREAK)
LEMON: Election results are in. The new president of Iran will be Hassan Rouhani. He is a cleric. He's a centrist. And he'll replace Mahmoud Ahmadinejad, who has to step down after two terms as president.
Here's Reza Sayah with more.
(BEGIN VIDEOTAPE)
REZA SAYAH, CNN CORRESPONDENT (voice-over): Moderate cleric, Hassan Rouhani, is the winner of Iran's presidential elections, an outcome that has energized Iranian reformists desperate for change, and stunned regime critics who said the vote was a sham and Rouhani would never beat his ultraconservative opponents. His rivals were viewed as staunch regime loyalist, the powerful leader's trusted yes men. Rouhani trounced them all, winning more than 50 percent of the vote to avoid a second-round runoff.
When campaigning kicked off last month, few analysts picked Rouhani to win, but his campaign quickly gained steam when he did what few Iranians politicians dare, criticize the regime. His attacks were tactful and subtle, yet passionate.
HASSAN ROUHANI, PRESIDENT-ELECT OF IRAN: (SPEAKING FOREIGN LANGUAGE).
SAYAH: He fired up campaign rallies by condemning the regime's tight grip on security, calling for reform, and better relations with the West. Suddenly, Iran's young reformists and pro-democracy activists, who initially said they would boycott the vote, started paying attention. Turnout of more than 70 percent suggests many eventually came out and voted for Rouhani. His landslide win shows Iranians want reform, but it's far from clear if Rouhani can deliver.
(CHEERING)
SAYAH: Despite his new title as reformist, Rouhani has long been viewed as part of Iran's ruling establishment, dominated by Iran's ultimate authority, the supreme leader, Ayatollah Ali Khamenei. Reform and improve relations with the West won't happen without the supreme leader's approval.
(CHEERING)
SAYAH: However, for the first time in a long time, reformists appeared to have a voice in Iran's halls of power, backed by a dominating election-day win.
(on camera): Despite the surprising outcome, many inside and outside Iran still skeptical about what this vote means and whether Rouhani will actually be able to accomplish anything. Can he impact Iran's nuclear standoff with the West? Can he fix the economy, create jobs. Reformists will want to know, will he free political prisoners, bring about social freedoms. Ultimately, these are the big issues Rouhani will be judged on, but for now, his supporters celebrating the big win.
Reza Sayah, CNN, Abu Dhabi.
(END VIDEOTAPE)
LEMON: Thank you, Reza.
You know those "Community Chest" cards in Monopoly that read, "Bank error in your favor. Collect $200"? This isn't one of those stories. Check out all the zeros on this screen. For one Georgia woman, the bank error was not in her favor. That's next.
(COMMERCIAL BREAK)
LEMON: You have to hear this story. A mysterious banking error has left an Atlanta-area woman $300 million in debt. That's right, I said $300 million. Ann Wiley knew something was up when she couldn't pay her bills. So she checked her bank accounts and found out $100 million had been taken out twice. Then, overnight, it happened again.
(BEGIN VIDEO CLIP)
ANN WILEY, VICTIM OF $3 MILLION BANK ERROR: Friends are keeping me afloat. I can't get anything from my account, obviously. I can't pay any bills or buy any food or put gas in my car.
(END VIDEO CLIP)
LEMON: OK. So, the woman's bank says the problem is with the Department of Revenue and this could have all stemmed from an old tax payment of $200.
Republican or Democrat, you might find it hard not to like Chris Christie. He won over some fans while on stage with Bill Clinton last night. His take on evacuations -- evacuating New Jerseyans during a Hurricane Sandy fiasco, next.
(BEGIN VIDEO CLIP)
NANCY HUGHES, CNN HERO: People have no idea that cooking kills people. Indoor air population, it's estimated that it kills millions of people every year.
A mother who has got a baby over an open fire, I mean, that's the equivalent of that baby smoking packs of cigarettes every day.
After my husband died of breast cancer, my life changed because I volunteered with a medical team in Guatemala.
There were doctors who could not put tubes down the baby's throats because the throats were so choked with creosote.
This is what they are breathing. Their lungs are like this inside. I thought, we need to change this.
My name is Nancy Hughes, and I work to save lives and save forests by providing fuel-efficient stoves to the world.
The stove is called the ecocucina, "E" for environment and cucina, for kitchen. It's safe. It's cool to the touch. It prevents the creosote buildup in the lungs. A contributes to better health by preventing skin diseases, eye disease. Also, you don't have to cut down trees. You can use small branches. It's kind of a little miracle.
We started six factories in five countries. We wanted to get employment in the areas where there's poverty. Those factories that we started have produced 35,000 stoves.
I'm addicted to this. The first year, I went to Latin America eight times on my own nickel.
There are a lot of women and a lot of children who are breathing a lot easier because of the ecocucina stove.
I'm 70 now, and this is what I do in my retirement.
(LAUGHTER)
(END VIDEOTAPE)
(COMMERCIAL BREAK)
LEMON: Chris Christie showing he is just as comfortable with the last Democrat who was president as he is with the current one. He sat down with former President Bill Clinton for a talk in Chicago last night. The New Jersey governor offered frank talk about how he urged people to leave the coast as Superstorm Sandy was approaching.
(BEGIN VIDEO CLIP)
CHRIS CHRISTIE, (R), GOVERNOR OF NEW JERSEY: I evacuated the entire New Jersey shore, 1.2 million people. Some of you may remember. I was getting really angry. People weren't moving. I said, "Get the hell off the beach." My wife -- I went home to Mary Pat. She said, did you really tell people to get the hell off the beach on television? I said, this is New Jersey, man. That's the only thing they understand.
(LAUGHTER)
(END VIDEO CLIP)
LEMON: Well, just last month, Christie and President Obama toured the rebuilt Jersey shore, showing the progress the region has made since last year's storm.
Sandy was last year's most expensive disaster, but it was far from the only one. From tornadoes to droughts, 2012 was a historically expensive year for natural disasters, but it could be even worse in the future.
Here is CNN's Alina Cho. (BEGIN VIDEOTAPE)
ALINA CHO, CNN CORRESPONDENT (voice-over): Hurricanes, tornadoes, fires, floods -- 2012 was the second-costliest year ever in terms of damage. According to the National Climatic Data Center, more than $110 billion spread out over 11 major weather disasters, each costing more than $1 billion.
CHAD MYERS, AMS METEOROLOGIST: That is just a number you can't even put your head around. Weather is becoming more extreme.
CHO: The most extreme of 2012, Superstorm Sandy, $65 billion in damage.
And let's not forget the human cost, more than 130 lives.
Perhaps lost in the coverage, washed away by news of Sandy, was the year-long drought. The longest since the Dust Bowl days of the 1930s, affecting more than half the country for most of the year, and costing $30 billion.
And remember, the drought leads to wild fires, which, last year, burned nine million acres across the country. So what's being done?
MICHAEL BLOOMBERG, (I), MAYOR OF NEW YORK CITY: This is urgent work, and it must begin now.
CHO: Just this week, New York City's Mayor Michael Bloomberg proposed a $20 billion plan to build flood walls, levees and upgrade the city's building codes.
New York City suffered $90 billion in damage post-Sandy. And Bloomberg says the forecast by mid century is that a similar storm could cost nearly five times that.
BLOOMBERG: We can do nothing and expose ourselves to an increased frequency of Sandy-like storms. We could abandon the water front or we can make the investments necessary to build a stronger, more resilient New York.
CHO (on camera): Here in Seaside Heights, New Jersey, which was devastated after Superstorm Sandy, a lot has happened in six and a half months. The entire boardwalk has been rebuilt. 85 percent to 90 percent of the businesses are back open. And we're told that some of the kiddie rides will be back on by July 4th.
The rebuilding costs $6 million to $7 million, which is half of the annual budget of Seaside Heights, but it's also their life line. 75 percent of the annual revenue comes from this boardwalk. So rebuilding it was priority number one.
Alina Cho, CNN, Seaside Heights, New Jersey.
(END VIDEOTAPE)
(COMMERCIAL BREAK) LEMON: A California husband will have a good Father's Day after all, despite selling his wife's wedding ring accidently for the low price of five bucks. The ring cost $23,000. It was kept in a watch box, which the husband sold at a yard sale, not realizing the ring was inside of it. His wife had put the ring in the box for safekeeping while she was in the hospital to deliver her fifth child. Fortunately, a couple who bought the box saw the story and returned the ring, guaranteeing a better Father's Day for the whole household. He is out of the box house.
I'm Don Lemon. I'll see you back here an hour from now.
