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Two NYPD Officers Shot Ambush-Style In Cruiser Yesterday; Boxing Legend Mohammed Ali Hospitalized; North Korea and U.S. Government Battle It Out Over "The Interview"; Rudy Giuliani Reacts To NYPD Cops Killed; Former Employees Sue Sony; Sony Says It Will Release "The Interview"; Obama Talks to CNN On Korea, Cuba and Race

Aired December 21, 2014 - 14:00   ET

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


(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This was a cold-blooded assassination like we haven't seen before.

(END VIDEO CLIP)

RANDI KAYE, CNN ANCHOR: Two of New York's finest gun down today more on the man police say pulled the trigger and could this deadly ambush have been prevented?

Also, breaking today, North Korea ups the ante claiming the U.S. government was involved in making that movie "the Interview" and threatening an even worse cyber attack.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Hi, Candy. How are you? Good to see you? Happy holidays to you.

(END VIDEO CLIP)

KAYE: And an exclusive interview with President Obama. Nothing is off limits. How will the White House respond to North Korea's escalating threats? Hear it all right now.

You're in the CNN NEWSROOM.

Good afternoon, everyone. I'm Randy Kaye in today for Fredericka Whitfield.

We begin this hour in New York. A stunning ambush in broad daylight. Two police officers murdered, shot and killed in their police cruiser. Today New York is in shock. Newspapers calling it an execution and tensions are mounting between police and the city's leadership.

We are covering every angle of this story, including an interview with former New York mayor Rudy Giuliani. Alexander Field is in New York. Erin McPike is live in Baltimore where police say the suspect shot his ex-girlfriend, and Michelle Kozinski is covering the reaction from the president and his administration from Hawaii for us. First, Alexandra Field is taking us through what happened in New York.

(BEGIN VIDEOTAPE)

ALEXANDRA FIELD, CNN CORRESPONDENT (voice-over): Hundreds of police officers united in grief in a salute for two of their own.

WILLIAM BRATTON, NEW YORK POLICE COMMISSIONER: Today two of New York's finest was shot and killed with no warning, no provocation. They were quite simply assassinated.

FIELD: With those words, a visibly shaken New York police commissioner, alongside New York's mayor, talking about the deaths of Officer Rafael Ramos and Officer Wenjian Liu. Liu, a seven-year veteran, married two months ago. Ramos, a two-year veteran, turned 40 this month. He was married with a 13-year-old son. They were killed, ambush-style, Saturday afternoon as they sat in their patrol car on a Brooklyn street.

The suspect who has been identified as 28-year-old Ismaaiyl Brinsley walked township the police car. He took a shooting stance on the passenger side and fired the weapon -- his weapon several times through the front passenger window striking both officers in the head.

Officer Liu and Officer Ramos never had the opportunity to draw their weapons. They may never have actually even seen their assailant, their murder.

FIELD: Police say officers chased Ismaaiyl Brinsley to a nearby subway station where he reportedly shot himself to death on the train platform.. A semiautomatic handgun was recovered near the body.

Brinsley arrived in New York from Baltimore But had a residence near Atlanta and apparently had connections to Brooklyn. Police say earlier in the day, her shot and serious wounded woman believed to be his ex-girlfriend in Baltimore.

Police there received information that Brinsley has made threatening comments about, least on social media sites, and they sent a warning to officers in New York but that message came almost at the same time the ambush happened.

MAYOR BILL DE BLASIO, NEW YORK: These officers were shot execution- style. Particularly despicable act which goes at the very heart of our society and our democracy when a police officer is murdered. It tears at the foundation of our society.

FIELD: New York police say there's no indication Brinsley was connected to any terrorist group.

PATRICK LYNCH, PRESIDENT, PATROLMEN'S BENEVOLENT ASSOCIATION: There's blood on many hands tonight.

FIELD: The deaths of two officers have highlighted mounting tensions between police union officials and the mayor who they accuse of putting officers' lives at risk with his support for recent protests, involving the Eric Garner chokehold death and the police shooting of Michael Brown.

LYNCH: Those that in sighted violence on this street under the guise of protest that tried to tear down what New York City police officers did every day. We tried to warn it must not go on. It cannot be tolerated. That blood on their hands starts on the steps of city hall in the office of the mayor.

FIELD: And in an apparent show of defiance, police officers gathered at the hospital where the explain officers were taken, turned their backs on the mayor as he entered for Saturday's press conference.

(END VIDEOTAPE)

KAYE: Alexandra Field joining me live now.

Alexandra, has the mayor responded to these comments at all?

FIELD: Randi, we did hear from the mayor when he spoke at a press conference. He said he isn't addressing the politics of this. He said he wants to keep the focus very squarely on victims, two fallen NYPD officers. We have heard, however, from the mayor's office, they're saying that this rhetoric coming from the union is overheated, and it will only serve to anger and divide people, and that is a concern right now. It's one of the reasons that just a short time ago out here at this memorial that it is growing.

We heard from the presidents of the boroughs here in New York City. They came out. They asked the people to remain peaceful and making request and they do not want to see any protests on these streets until these two officers are laid to rest. That is their message. They are really hoping to keep people calm right now and keep people respectful and keep people focus odd two NYPD heroes who gave their lives.

And just a few moments ago, actually, Randi, we saw secretary of homeland security Jeh Johnson also stop by. He is a native New Yorker. He is struck as so many people are. He said that he came out here simply to pay respect, to pay tribute, and to shows solidarity with the NYPD which is having a very dark day in the city -- Randi.

KAYE: Absolutely. It's all just so senseless.

Alexandra Field, thank you very much.

One of the officers, Rafael Ramos, has a 13-year-old son. He posted a heartbreaking comment on facebook. He wrote, today I had to say bye to my father. He was there for me every day of my life. He was the best father I could ask for. It's horrible that someone gets shot dead just for being a police officer. Everyone says they hate cops, but they are the people that they call for help. I will always love you, and I will never forget you. Rest in peace, dad.

The violence came to a head in New York, but it may have started several hours away in Baltimore. The New York police commissioner says this Ismaaiyl Brinsley shot a woman believed to be his ex- girlfriend. Erin McPike joining me now live from that woman's apartment, just

outside Baltimore.

And Erin, what are police there saying today?

ERIN MCPIKE, CNN CORRESPONDENT: Well, Randi, police are saying that he had no other connection to this area than this woman. Her name is Shaniqua Nicole Thompson and she is 29-years-old. She lived in this apartment complex by herself.

Police say from early interviews that they have conducted, they believe that the two had a romantic relationship sometime within the last year. Neighbors called the police shortly after 6:00 a.m. yesterday after they heard some gunshots. Police believe that Brinsley shot Thompson in the stomach and then fled.

Police also say that he stole her phone, which is how they were able to trace him in New York after he posted some threats on social media. Now, police also say that Thompson is in critical but stable condition. But because of her condition, they have not yet been able to interview her. However, New York detectives are on the way here, and they hope to interview her later today, Randi.

KAYE: And, Erin, what do we know about the warning that Baltimore police sent to the New York police?

MCPIKE: Well, as they were starting to investigate yesterday afternoon and traced that phone to a location in Brooklyn and got some pings, that's when they began to warn Brooklyn police they sent a fax and a couple of different messages showing who they believed to be the suspect to the New York police department. It was, of course, though, as we are now learning, around this same time that Brinsley opened fire on those two police officers, Randi.

KAYE: And Brinsley, from what I understand, does have a criminal history. What do we know about that?

MCPIKE: He does, Randi. And it is not in this particular area. But we know from Georgia law enforcement that he has been arrested some nine times since 2004 for a variety of things, including disorderly conduct and possession of marijuana as well as a variety of other charges. So obviously, he is a very troubled person, Randi.

KAYE: Erin McPike, thank you for the update from there.

The White House and the judges department have weighed in on the killing of those New York officers.

White house correspondent Michelle Kozinski with the president as he vacationed in Hawaii.

Michelle, what is the president saying today?

MICHELLE KOZINSKI, CNN WHITE HOUSE CORRESPONDENT: Hi, Randi. Well, a few hours after the shooting last night, he put out a statement unconditionally condemning it, saying two brave men won't be going home to their loved ones tonight, and for that there is no justification. The officers who serve and protect our communities risk their own safety for ours every single day, and they deserve our respect and gratitude every single day.

And from attorney general Eric Holder, also in a statement, this cowardly attack underscores the dangers that are routinely faced by those who protect and serve their fellow citizens. Our nation must always honor the valor and sacrifices of all law enforcement officers with a steadfast commitment to keeping them safe.

Also in a statement, the president urging Americans to reject violence and turn to healing through prayer, patient dialogue, and sympathy, Randi.

KAYE: And Michelle, the president may be on vacation, but certainly North Korea is on his mind. What is he saying in his national security team saying about that today?

KOZINSKI: All right. They're saying because North Korea has now come out with this tsar and harsh statement saying that the hackers are only going to be sharpening their bayonet's, and these attacks escalating which is interesting considering that North Korea denied responsibility for the attack, but they're warning of more coming.

The National Security Council says they're not going to respond to everything North Korea says and engage in this back and forth, but the president has made clear, including in its interview with Candy Crowley this morning, that the U.S. is going to respond proportionally and in a time and manner that the president sees fit. He -- we know that he has received recommendations from his advisors and those could include more sanctions against North Korea, Randi.

KAYE: Michelle Kozinski in Honolulu, Hawaii. Thank you, Michelle.

Boxing legend Mohammed Ali is in the hospital today. Doctors say he has pneumonia, but it was caught early. That's the good news. He is not expected to be in the hospital very long. The 72-year-old also suffers from Parkinson's disease. Ali won an Olympic gold medal in 1960 and was the world's heavy weight champion several times over the 20-years that follows.

North Korea is accusing U.S. government of being behind the movie "the Interview" and it is vowing revenge. Hear what the communist regime says it is going to do to the U.S. next.

(COMMERCIAL BREAK)

KAYE: Let's get back to our developing story in New York. Two police officers shot and killed in their police cruiser. Today the city is in shock. Newspapers are calling it an execution, and there are growing tensions between police and the city's leadership and has left many wondering what now?

Let me bring in Gill Alba. He spent 28 years as a New York City police officer, including several years on the major case squad, and Errol Louis. He is a CNN analyst and a politics anchor at "New York One News." They are both joining me from New York today.

Gill, let me start with you on this one. What is the gut reaction happening right now in squad rooms across the city? I mean, is it anger? Is it sadness? What are the officers feeling? What are they talking about?

GILL ALBA, FORMER NEW YORK CITY POLICE OFFICER: When this happens, when you -- it's not the newspapers. It's an execution. It's obviously an execution. They feel that the first thing that comes around is sorrow. Sorrow and then the anger. Anger takes over now, and that's why, you know, you have the mayor's issues going on with the officers.

But now, they're trying to prepare the police officers for could this happen again? Could other people come up and shoot the police officers? So, the unions now, the -- I spoke to detectives, present detectives association. And he has sent out a memo and having all the officers, the detectives on high alert. Having their uniforms -- their vests on, you know, going into jobs with at least three other officers. So prepare yourself. It's -- it could be an isolated incident, but then again, because of this particular guy and this particular person, premeditated all this. So he knew he was going to come up and kill two officers. He knew he was going to kill -- he knew he was going to die, so he had no fear. So, could somebody else come up and do the same thing, and that's a possibility.

KAYE: And Errol, let me turn to you now. I mean, in New York, we know there's already been this polarized reaction to the killing of Eric Garner there by a police officer in that chokehold case. There has been some deep criticism of the Mayor de Blasio there. So, is this killing going to galvanize this side even further, or could it actually bring both sides together.

ERROL LOUIS, CNN ANALYST: Well, things don't look very good on the issue of bringing things together. Some of the statements that you have heard, some of the statements that you have aired, people sort of saying publicly that the blood in on the hands of that mayor which is an unconscionable statement that actually doesn't make any sense. I mean, what was it about anything that mayor has said or done that encourage the mad man to shoot his girlfriend in Baltimore. And then traveled her and commit these other atrocities.

You know, it is the irresponsibility is running very high right now. And I think it's going to be up to people outside of the leadership. Not necessarily the political staff at city hall, not necessarily the union leadership, but the vast majority of the rank-and-file cops, the vast majority of people of goodwill, whether they're protesters or not, are going to have to pull the city back together because the leadership, it looks like, are in this kind of stranglehold against each other, and they seem unable to do the very basic thing we all expect from all of them, which is to keep the city safe, keep the city calm.

KAYE: For those that aren't following this as closely, I mean, the criticism of the mayor by the police officers, was that he allowed for these protests to take place and supported them is what the police are saying.

But some protests, Gil, were so filled with hate, with some people calling for dead police officers. I mean, is it fair to let people vent their anger or frustration or is it far beyond whatever the first amendment had really ever intended?

ALBA: Well, this issue with the mayor started a long time ago when he became mayor. So his obvious distain for police officers in New York City police officers, you know, the police feel that bad and they know it is there. So, there is something tangible there as far they are concern. So, you know, he turned their backs on the police officers so when he came in to give that particular speech, of course, they turned their backs on them.

And then they have the demonstration where they say kill NYPD. Kill NYPD. And you take that and you let them march and it is OK to let them march and do those things. But they postulate (ph) these kinds of issues where you get this particular mentally ill person to come up and get a name for themselves. And this is probably what happened with this person and that could happen again to somebody else.

KAYE: So what now, Errol? What is the answer? Where do they go from here? Where does New York go from here?

LOUIS: Well, we're in a very difficult place. I mean, if the standard is going to be either say nothing critical of the cops for fear that it would excite some mad man hundreds of miles away, you know, then that's not the first amendment. That's not acceptable. That's not what's going to happen. We're going to continue to have a dialogue.

This is supposed to be a candlelight vigil tonight by some of the people who had been protesting in the Eric Garner case. We're going to hope for -- I'm going to hope for through the holiday season, maybe a cooling off period. People can sort of maybe be a little bit reflective about what they have to say and done and that would include all of the players, including the folks at city hall and the police union.

And then hopefully we'll go into 2015 with a new attitude. Because Randi, the crazy thing here is we're at record lows when it comes to violent crime. We've never had a more safe city, and to turn on the television, it looks like we're in complete chaos. It doesn't make any sense.

KAYE: Yes. It certainly doesn't. None of it does.

Errol Louis, Gil Alba, thank you both very much. Appreciate it.

ALBA: Thank you for having me.

LOUIS: Thank you.

KAYE: Meanwhile, North Korea is accusing the U.S. government of being behind the movie "the Interview." And it is vowing revenge. I will speak to a man who knows the North Koreans as well as anyone. (COMMERCIAL BREAK)

KAYE: North Korea is leveling new accusations and threats at the U.S. for cyber attack on Sony Pictures. Today, it claimed the U.S. government is behind the making of the movie "the Interview." In a statement released on state media, the communist regime says this.

Quote "the DPRK has clear evidence that the U.S. administration was deeply involved with the making of such dishonest reactionary movie." And it warns of new devastating cyber attacks saying quote "our toughest counter action will be boldly taken against the White House, the Pentagon, and the whole U.S. mainland, the cesspool of terrorism."

North Korea denies that it staged the hacking on Sony, but it says the group that has taken responsibility for, the Guardians of Peace, will continue to attack the U.S. and some other nations as well.

President Obama talked about the Sony cyber attack with Candy Crowley earlier.

(BEGIN VIDEO CLIP)

CANDY CROWLEY, CNN CHIEF POLITICAL CORRESPONDENT: Do you think this was an act of war by North Korea?

OBAMA: No, I don't think it was an act of war. I think it was an act of cyber vandalism that was very costly, very expensive. We take it very seriously. We will respond proportionately.

(END VIDEO CLIP)

KAYE: The White House is still weighing what that proportional response will be. It also says the U.S. won't be commenting on every new statement from North Korea, including today's message.

CNN's Kyung Lah talked with our Brian Stelter earlier today about what the threats could mean.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (via phone): I thought that the usual writer for the DPRK has finally come back with their patient because we're seeing that (INAUDIBLE), saber rattling, the typical rhetoric from North Korea, they are upping the ante. It is just like (INAUDIBLE), whatever North Korea attacks, whenever they lash out and they are at their very best here.

A couple of things to note, it did come out in English, Brian. You are right about that. It came out a couple of hours ago late here in Korea. The audience is absolutely not the domestic audience. It is for America. It came from the national against commission. This is essentially the agency that as far as we know runs the military. The Pentagon, if you will, speaking directly for Kim Jong-un.

And the other thing that I really note about this is that they are trying to up the ante. North Korea craves attention, and they are saying, OK, everyone is concerned about cyber attacks. Well, we are going to make it worse.

(END VIDEO CLIP)

KAYE: Sony is getting a lot of criticism, even from President Obama for shelving the movie "the Interview" after theaters refused to screen it. But today, the attorney for Sony pictures entertainment promised the film eventually will be distributed. And that is fueling speculation about what North Korea might do if that movie is released.

Joining me now from Washington, Joseph DeTrani, the president of the nonprofit think tank intelligence and national security alliance, and a former special envoy to the six-party talks with North Korea.

Joseph, nice to see you. First, I want to get your reaction to the latest threat from North Korea. What do you think? I mean, is this all bravado, or do you think that they might make good on their threats?

JOSEPH DETRANI, FORMER SPECIAL ENVOY TO NORTH KOREA: You know, North Korea, this is typical. They threaten. They try to intimidate. And unfortunately, this has been the path they have been off for some time. Will they follow through on something like this? I think North Korea understands to follow through on something like this would be devastating to them.

My view is they have to understand their consequences for what they recently did with the cyber attacks, the cyber terrorism. And they have to understand that. If they have a case to make, they can make that case. They have the office of the United Nations. They have China they can go out to and so forth, but they should cease and disease from threatening the United States and others. Simply the United States, and trying to intimidate the United States. That doesn't work any longer. They should cease.

KAYE: Let me ask you about North Korea's secretive group. It's called the bureau 121. Apparently carries out cyber attacks overseas. What are their capabilities exactly?

DETRANI: Their capabilities, from what we know, you know, North Korea has put a lot of emphasis on their missile programs, their nuclear programs, and also the asymmetrical programs and indeed cyber. So I think the sense is they have good capabilities. Not maybe the excellent capabilities that maybe China and Russia and some others have, but they have very good capabilities. So they've been at this for a number of years, and they put significant resources on this issue.

KAYE: As you said, these very hostile threats, they are considered pretty typical of North Korea. But there is this other threat, the nuclear threat, of course, that has a lot of folks worried. North Korea has threaten to fire on the White House and the Pentagon before. I mean, how worried should we be that this fiber threat could lead to a bigger nuclear threat?

DETRANI: Well, I think North Korea understands cyber issue what they did recently with the cyber attack and cyber terrorism threatening U.S. movie theaters and the moviegoers. That crossed the line. I think they realized that. And I think they're scrambling right now to sort of make the case that they were complicity in this, and they're going to have a hard time doing this given the compelling evidence against them.

And now they're upped the ante saying, look, we can do other damage to the United States. And you mentioned nuclear. Well, they have nuclear capabilities, but I think most analysts that look at North Korea feel they're not suicidal. I mean, they realize the consequences of any -- going down a road like that.

So my personal view is, you know, they could these things but they need to understand that they will be significant consequences. I think they realize that.

KAYE: So reading some of the papers earlier, there's a general from China who spoke out saying that the relationship between North Korea and China has soured. I mean, it really seems China is just flat out tired of cleaning up North Korea's mess. I mean, how critical is China's role here in helping the U.S. since we know now that the U.S. has asked China for help in fighting the cyber attacks?

DETRANI: I think China's role is very significant, very critical in trying to resolve this issue. But moving forward with North Korea, they have been on the same page with the de-nuclearization (ph) issue. They don't want a nuclear weapons in North Korea. They know that. But the question is how far will they go in getting North Korea to behave to stop this intimidation, to stop the threats, stop the missile launchers and nuclear tests?

I think this is where our two countries really have to work hard on this to get China to do a little more and to convince North Korea this is not the way to go? And certainly on the cyber piece, I mean, we immediate to be working very closely, and we do have a dialogue with China on cyber issues. And I think China has a lot of influence on North Korea? Does North Korea salute and take orders from China? I don't think so. But I think their responsive to China. I think they are sensitive to China's feelings. I mean, look. Most of the crude oil that comes into North Korea comes from China. So they need China. I think they listen.

KAYE: Yes. All right.

Joseph DeTrani, appreciate it. Nice to see you, and thank you for your time, as always.

DETRANI: Nice seeing you.

KAYE: Still ahead, the former mayor of New York, Rudy Giuliani, we will hear what he is saying about the killing of the two New York cops.

(COMMERCIAL BREAK)

KAYE: Welcome back. Flags are flying at half-staff after two police officers were shot and killed in their police cruiser. The New York police commissioner says there was no warning, no provocation. The gunman just walked up to the car yesterday afternoon and opened fire.

Nick Valencia is joining me to talk more about this. Nick, we have this brand new video from the scene. You just got your hands on it as well. What can you tell us about it?

NICK VALENCIA, CNN CORRESPONDENT: Yes, we want to show you this video. It appears to be shot by a nearby resident there in a high- rise. It shows the two officers just moments after they were shot by the gunman. Officers Wenjen Liu and Rafael Ramos were shot without provocation or without warning.

The commissioner for New York Police Department telling media and the local press as well as residents there that there was simply no chance that they had -- they didn't have a chance to draw their weapons.

Some people are also pointing some of the blame at the Baltimore County Police Department. We just got our hands on these facts earlier. Some people were saying in 2014, a police still sending fax.

Why wasn't a phone call made? Why weren't these officers given prior warning? They knew -- they sent this fax according to the police department warning that this gunman is now -- that he was on his way to the New York police area, on his way to Brooklyn area.

And he had posted on social media that he wanted to shoot a police officer there were some ominous warnings. Why wasn't a phone call made?

KAYE: It's amazing in this day and age, who knows if anybody is standing by a fax machine on a Saturday in New York, it's just unbelievable. You're right.

So let's talk about one of the two officers, Rafael Ramos. He leaves behind a 13-year-old son, and he has really posted some very emotional statements about his father on Facebook.

VALENCIA: Rafael Ramos had actually two children. One in college, and another 13-year-old, and we saw his social media his Facebook page. We want to show you some of the statements here.

It says today I had to say bye to my father. He was there for me every day of my life. He was the best father I could ask for. It's horrible that someone gets shot dead just for being a police officer. Everyone says that they hate cops, but they are the people that can help. I will always love you and will never forget you. RIP, Dad.

It's a very emotional tribute by a young man there who is going to be spending this holiday season the rest of his life without a father.

KAYE: He has a point though, you know, a lot of people obviously turned to the police for help and --

VALENCIA: Some people pointing the blame on the mayor as well saying, that he was backing these demonstrators. The "I can't breathe" protesters, as well as the shut it down protesters in New York. That's what they claim especially the police union saying that he sort of enflamed this, adding to the tension, of course to the family of Rafael Ramos choosing to focus on grief rather than blame.

KAYE: Yes, absolutely. All right, Nick Valencia, thank you. Appreciate that. Former New York Mayor Rudy Giuliani is reacting to the killing of the police officers and here he is in his own words.

(BEGIN VIDEOTAPE)

RUDY GIULIANI, FORMER NEW YORK MAYOR (via telephone): It's an over action. Some people to say that the blood of these police officers are on the mayor's hands, that is not true. I lost police officers. It makes a damaging thing to say, and it shouldn't be said.

Nor do I think the police officers should turn their back on them. My heart goes out to Mayor De Blasio and Bill Bratton. There's no question they didn't want to see something like this happen, and I'm sure they're going to learn from this and make some changes.

But the part where I do disagree with the mayor is the way he policed the protest. Let the protest gets out of control. They should have designated areas where they can protest and the city can move forward as normal.

UNIDENTIFIED MALE: Our city is in mourning.

GIULIANI: On his shied he should admit that some of the policies are wrong and some of his support for police maybe came from not understanding policing.

This is emotional, and it's a horrible act, and there's no way to explain the grief and maybe just maybe it will give people a different perspective on the police that they've been given over the last four months for protest.

With all the anti-police rhetoric, they are creating a misimpression and, in fact, they're engaging in propaganda. The reality is that the police kill very few people. Killings take place among citizens.

There is a very heavy amount -- those are the things that have to be dealt with. I think most people realize, including people in the black community, Hispanic community, doesn't matter any community, they all want more police.

And they all realize that most of our police officers aren't just good people, they're heroes.

(END VIDEOTAPE)

KAYE: Former Mayor Rudy Giuliani there. When we return, new developments on another major story that we are following today, the cyberattack on Sony Pictures, a representative for Sony speaking out about the release for interviews, and he has a message for American movie goers.

(COMMERCIAL BREAK)

KAYE: All the controversy surrounding the release of the Sony movie "The Interview" is generating a lot of interest in the film. Many people really want to see it, and now it looks like they might be able to.

Here's what the attorney for Sony Pictures Entertainment had to say today on NBC's "Meet The Press."

(BEGIN VIDEO CLIP)

DAVID BOLES, SONY PICTURES ENTERTAINMENT LAWYER: Remember, Sony only delayed this. Sony has been fighting to get this picture distributed. It will be distributed. How it's going to be distributed I don't think anybody knows quite yet, but it's going to be distributed.

(END VIDEO CLIP)

KAYE: Joining me now from New York, CNN senior media correspondent and host of "RELIABLE SOURCES," Brian Stelter. Brian, nice to see you. So how likely is it that Sony will make good on that promise to deliver the movie?

BRIAN STELTER, CNN SENIOR MEDIA CORRESPONDENT: I think it's very, very likely. I will be shocked at this point if we don't see this movie some way somehow. The question now is how. One source at Sony said to me today, we are pursuing all options.

Let's imagine what those could be. It could be Netflix or YouTube. It could be independent movie theaters, or it could be the big movie theater chains that originally decided not to show the film about four days ago at this point.

Netflix is not commenting. YouTube is not commenting. The theater owners are not commenting. You get the picture here. Pretty much everybody is staying silent about this.

But these discussions Sony is having are happening this weekend and so if we don't hear about some sort of resolution this week, I think we definitely will by very early 2015.

KAYE: So Sony we know has taken a lot of heat for shelving the movie. A lot of Americans, including the president, they argue that you can't let a dictator from another country decide what movies we will or won't watch.

So you know, some folks say that wouldn't it be a great P.R. opportunity for Sony and the major theater chains and online companies like Netflix and Hulu to show this movie. What do you think?

STELTER: That's what I think we're seeing. I think what we're sensing from Sony is a bit of defiance. Defying these hacker's demands not to let the movie be shown, and now defying the government of NORTH KOREA, which explicitly said in their latest statement today that they don't think the movie should ever be seen. Defiance does feel like it's in the air. There's even some protests that are starting to pop up. We're seeing some Hollywood types organize some groups that are saying that they're standing against sensorship and for freedom of expression.

But the problem here is that anybody that agrees to partner with Sony to help release this movie is going to be concerned about hacking. It is going to be concerned about threats.

Not necessarily physical attacks because the government here in the U.S. was pretty clear there isn't credible evidence of any possibility for a physical attack on movie theaters, but for the possibility of more threats or the possibility of more cyberattacks.

That's what YouTube has to think about. That's what any movie theater chain has to think about, and that might be what they're weighing right now as they discuss this with Sony.

KAYE: Amazing how much attention this is getting. Brian Stelter, thank you very much.

STELTER: Thanks.

KAYE: So Sony says that it is going to release the interview as we told you, but could that add to the legal troubles the company is already facing? We'll ask our legal ladies in a moment.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is the home that I was born in. That was my candy store, before and after school. That's my kindergarten. Little Boris. Little Boris. These are the original courts when I picked up my first record. I want to show you my very first coach that I started playing with. It's the tennis wall.

UNIDENTIFIED MALE: The tennis wall was your first coach.

UNIDENTIFIED MALE: When I was little and my parents were busy, and I was too small and not allowed to go on the court, that's where I played for hours. This is the city square.

UNIDENTIFIED MALE: This is your homecoming.

UNIDENTIFIED MALE: This is my homecoming.

UNIDENTIFIED MALE: Here we are.

UNIDENTIFIED MALE: Here we are.

UNIDENTIFIED MALE: Right --

UNIDENTIFIED MALE: Standing on the famous terrace. Yes. It looked so much bigger then.

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: The joys of German culture, beer and sausage.

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KAYE: An attorney for Sony said this morning the company will release the movie "The Interview" after all. He didn't say when or if it will be in theaters or some other form of release. The cyber-attack of the company has also created some legal problems for Sony. Former employees have now filed four lawsuits.

Now, the suits claim that the company ignored warnings about the attacks and failed to protect their personal information. A group calling itself "Guardians of Peace" has claimed responsibility for its attack. It says it has social security numbers of 47,000 current and former employees.

So let me bring in our legal ladies panel for this week, Ashleigh Merchant is a criminal defense attorne and Judge Glenda Hatchet is, of course, the star from the "Judge Hatchet TV Court" series. Welcome to both of you.

So Ashleigh, let me start with you on this one. Do these former Sony employees have a good case do you think?

ASHLEIGH MERCHANT, CRIMINAL DEFENSE ATTORNEY: Well, you know, it's really too early to tell at this point. We just don't know. The problem is that Sony knew that they were vulnerable because they've had some hacks before. They've had some cyberattacks before.

So that works against Sony because they should have known that their security was a little lax in that area and so they should have beefed it up.

So the question is going to be whether or not they responded appropriately based on those prior hacks, but unfortunately it's too early to tell if they've got a case or not.

KAYE: So really who is (inaudible), Judge, because you have Sony who maybe they should have been more careful about security even though they were saying that they did everything right or is it up to the employees to be worried about their own privacy and keep an eye on it?

JUDGE GLENDA HATCHETT, "JUDGE HATCHETT" TV COURT SERIES: In this situation the employees can't. Let me just say, Randi, full disclosure, I may well be a member of that class because Sony produced and distribute my show, and so I've had a 14-year long relationship with Sony Pictures.

So I want to, you know, do that as full disclosure before I comment, but I don't know that employees can protect themselves in this situation. Only Sony can protect them from hackers in this situation, and Ashleigh is right.

It is too early to tell really what the shake-out is going to be, and the ultimate question is going to be, what are my damages? What are my damages? Can I prove that I in fact was damaged because my information may have been compromised, and how do I know and when will I know? It may be years?

KAYE: Right. So if the company does release the movie and there is some type of repercussion from hackers or anybody else, another group, does it open them up to liability, Ashleigh?

MERCHANT: It definitely could and I think that I'm sure it will. Their lawyers I'm sure are going crazy weighing the risks and again fits here. At the end of the day it's free speech. If they wanted to produce this movie and stand by it, then they should release it, and I hope they do release it because that's one of the tenant this is country was found on.

KAYE: So you don't think it should stay locked up in a vault?

HATCHETT: No. I agree because this is just the beginning. We are on a slippery slope. Randi, if they back down now, then what will happen next? What will happen next? I think that's right. There is free speech.

However, if it is released and if movie theaters show it, my concern is about the safety and those movies, and what is the liability both for the theater owners and for Sony in that situation going forward. That's a tough one.

KAYE: Getting back to Sony and the security measures, how would these employees if they did go ahead and -- how do they prove that Sony was at fault?

MERCHANT: What they would have to do is have to basically show that Sony should have known that their security measures were lax and that Sony could have taken reasonable steps to make this --

KAYE: Do they have to find emails and warnings and things like that?

HATCHETT: They have been hacked before so we know that there have been some soft spots in their security.

MERCHANT: The big problem though is that these are criminal essentially, I mean, these are cyber vandals. They are criminal hackers, and so it's really hard to put it back on Sony to protect against criminals.

Unless they should have known or unless they should have known that they were at risk because they're criminals. How do you protect yourself against being a victim of a crime?

KAYE: We love the internet, but, boy, it can cause problems.

HATCHETT: I feel bad Sony. I really do. It's a tough --

KAYE: All right, thank you both. Nice to see you.

CNN's exclusive year-end interview with President Obama is straight ahead. (BEGIN VIDEO CLIP)

CANDY CROWLEY, CNN HOST, "STATE OF THE UNION": Do you think this was an act of war by North Korea?

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: No, I don't think it was an act of war. I think it was an act of cyber vandalism that was very costly, very expensive.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KAYE: North Korea's cyberattack, race relations in this country, and opening relations with Cuba. President Obama talked about those issues in an exclusive interview with CNN's chief political correspondent and anchor of "STATE OF THE UNION," Candy Crowley.

He had a lot to say starting with his reaction to Sony disagreeing with him when he said that Sony made a mistake cancelling its release of "The Interview" movie after a cyberattack and more threats from North Korea.

(BEGIN VIDEOTAPE)

PRESIDENT OBAMA: I was pretty sympathetic to the fact that they have business considerations they have to make, and, you know, had they talked to me directly about this decision I might have called the m theater chains and distributors and asked them what the story was.

But what I was laying out was a principle that I think this country has to abide by. We believe in free speech. We believe in the right of artistic expression and satire and things that powers that be might not like.

If we set a precedent in which a dictator in another country can disrupt through cyber, you know, a company's distribution chain or its products and as a consequence, we start censoring ourselves, that's a problem. It's a problem not just for the entertainment industry.

That's a problem for the news industry. CNN has done critical stories about North Korea. What happens if, in fact, there is a breach in CNN's, you know, cyberspace. Are we going to suddenly say, well, we better not report on North Korea?

So the key here is not to suggest that Sony was a bad actor. It's making a broader point that all of us have to adapt to the possibility of cyber-attacks. We have to do a lot more to guard against them.

CROWLEY: Let me move you on to the other big story that we've had, and that is your reach out -- or Cuba's reach to you and your reach to Cuba.

PRESIDENT OBAMA: Cuba offers us an example of an opportunity to try something different. For 50 years we've tried to -- if we can overthrow the regime through isolation, it hasn't worked. If we engage, we have the opportunity to influence the course of events at a time when there's going to be some generational change in that country, and I think we should seize it, and I intend to do so.

CROWLEY: A question that I think arises to me is people say, well, is he in a special position, and so much is expected of him. You know, do you think that you look at race matters somewhat differently because, yes, you're the first African-American president, but your mother was white. You were raised by your mother and your white grandparents. Does that give you a different perspective, do you think?

PRESIDENT OBAMA: I think what it does do for me is to recognize that most Americans have good intentions. I said a little bit about this in the press conference earlier today. I assume the best rather than the worst in others.

But it also makes me mindful of the fact that there are misunderstandings and mistrust, and there are biases sometimes over and hidden that operate in ways that disadvantage minority communities, and that's a carry-over.

There's a long legacy in this country that has gotten enormously better, but it's still there. When you look at what's happened in law enforcement across the country over the last several years, that's not news to African-Americans.

What's different is simply that some of it's now videotaped, and the question then becomes what practical steps can we take to solve this problem, and I believe that the overwhelming majority of white Americans as well as African-Americans want to see this problem solved.

(END VIDEOTAPE)

KAYE: Many thanks to Candy Crowley for that exclusive interview with President Obama.

We have much more just ahead in the NEWSROOM, and it all starts right now.