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Early Start with John Berman and Zoraida Sambolin

Arming Sunnis To Fight ISIS; Former House Speaker Indicted; NSA Programs Expire Sunday Night; Flash Flood Emergency In Northeast Dallas; Obama Tweets Support For Fired Bulls Coach; Adrian Peterson Twitter Rants About NFL Contracts; Mortgage Rates Hit 2015 High. Aired 5:30-6a ET

Aired May 29, 2015 - 05:30   ET

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


[05:30:22] JOHN BERMAN, CNN ANCHOR: This news coming as Iraqi forensic teams begin trying to identify nearly 500 bodies exhumed from the presidential complex in Tikrit. Officials believe the bodies belong to Iraqi military cadets whom ISIS claims it killed last June in a massacre at a nearby base.

Also overnight in Baghdad, at least nine people were killed and 14 injured in twin car bomb blasts at two luxury hotels popular with Iraqi officials, VIPs, and foreigners.

A lot of developments overnight, standing by in Baghdad for us is senior international correspondent, Arwa Damon. Arwa, what's the latest?

ARWA DAMON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we sent crews out to those two sites of the attacks that took place overnight. Security Forces is not allowing anyone nearby, but the damage done by these two massive explosions, quite extensive, and an example of just how difficult it is and how incapable to a certain degree the Iraqi Security Forces are at protecting these kinds of installations.

Both hotels have a checkpoint before you enter where vehicles are supposed to be searched. We saw two vehicles manage to breach those defenses that were put into place. We are talking about this effort by the U.S. to possibly arm the Sunni tribes.

Now the tribes, some of them, are already involved in the fight, but the problem that they have is, of course, weapons. They only have light weapons. They can hardly make a significant stance against ISIS.

The Sunni tribes have been begging, pleading with anyone to provide them with weapons for well over a year because ISIS entered a lot of these areas well before it took down and stormed into Mosul. The Iraqi government has been promising the Sunnis that it will arm them, but has yet to make good on that pledge.

If the U.S. directly arms these tribes, it could potentially cause some tensions with Baghdad. The Americans have worked with these tribes in the past. Back in the days when they were fighting al Qaeda and the Sunnis in Anbar Province, decided to turn against al Qaeda not wanting to live under al Qaeda's rule. And ended up allying themselves to a certain degree with the U.S. but at this stage, the Sunnis do feel as if both the Americans and the U.S.-led coalition and the government have abandoned them to a certain degree by allowing large swaths of Anbar and especially Ramadi to fall.

Time is of the essence in all of this to say the least, John, because if those tribes are not armed, they will grow even more disenchanted with the United States, with the Shi'a-led government and they already feel as if there was perhaps some sort of deliberate attempt to have Anbar fall and to punish them for having ISIS enter their territories.

We were speaking with some of those who were able to flee the ISIS onslaught into Ramadi. They are living in these makeshift camps that are set up in some neighborhoods in Baghdad, being cared for largely by the community.

A lot of these communities, John, have been through this before. They know what it is like to be displaced. They reall empathize with those who had to flee from Anbar and who had to flee ISIS in Ramadi.

A great concern, a number of the refugees were telling us, though, was the security and safety of their relatives that were left behind. It is unclear exactly how many civilians remain in Ramadi, but there are neighborhoods that ISIS took over well over a year ago when it first entered Ramadi and civilians have not been allowed to leave those areas.

If they try, they threatened with death. The concern, according to one individual, who we spoke to, his relatives are stuck in one of these neighborhoods is that ISIS is deliberately using them as human shields -- John.

BERMAN: Tough situation and very little semblance of trust there, which would make things so much better. Arwa Damon for us in Baghdad, thanks so much.

New questions this morning about why a federal grand jury in Chicago has indicted former House Speaker Dennis Hastert on charges of financial misconduct and lying to the FBI. Hastert, of course, once one of the most powerful men in America.

The indictment says he restructured bank withdraws to avoid IRS reporting requirements. It says he paid $3.5 million in hush money in order to keep secret unspecified misconduct that dates back far back perhaps as far back as the days as a high school wrestling coach.

There was no response on Thursday when CNN knocked at his door in Illinois. Former colleagues are now reacting to the indictment.

(BEGIN VIDEOTAPE)

MIKE ROGERS (R), FORMER HOUSE INTELLIGENCE CHAIRMAN: I'm shocked and disheartened that Dennis Hastert found himself in a position where he felt he had to do something this drastic. Obviously clearly he must have known that it was illegal to do it in the way they structured it. Because that is the way they structured it so on a personal level, shocked and dismayed. My heart goes out to his family. I hope they get it worked up. From an FBI agent perspective --

[05:35:07] WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": And you used to be an FBI agent.

ROGERS: I did. Lots of questions, was he extorted likely the way they've written the indictment where it says individual aid means that individual aid is likely to have cooperate with the FBI at some point in this investigation. So I think there is going to be a lot more stories to be told here.

(END VIDEOTAPE)

BERMAN: He is one of the most popular speakers and members in Washington considered very low key. He took on a job as a lobbyist after he left the House. He has now resigned that position. Interesting to see what happens over the next few days.

This morning, less than three days remain before major U.S. intelligence programs shutdown that is unless lawmakers find a compromise on legislation to reauthorize them.

The White House says there is no plan b if legal authority expires and the NSA is forced to shut down its bulk phone data collection and other programs.

This does put pressure on congressional leaders. They are scrambling for solutions before a deadline that comes Sunday night. You know Congress doesn't like working on the weekend. CNN's Michelle Kosinski with the latest for the White House.

MICHELLE KOSINSKI, CNN WHITE HOUSE CORRESPONDENT: The White House is continuing the push to try to get the Senate to act before deadline to keep these parts of the Patriot Act up and running.

Saying that failing to do so is like playing national security Russian roulette, unnecessary risk, and saying the FBI's work is going to be severely impacted. Here is the press secretary.

(BEGIN VIDEO CLIP)

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: What the professionals have told us is that these are programs that have provided valuable information in the past. These are critical tools that are used to keep the American people safe.

They use these tools to collect information that has not been otherwise available to them. That was then used to prevent individuals from carrying out acts of violence and to round up people who wished harm on the United States.

(END VIDEO CLIP)

KOSINSKI: Well, that's what they have been saying, but the thing is, U.S. officials cannot point to a single case where the programs saved the day and thwarted terror. When you look at the other programs besides the bulk phone data collection that are going to expire, things like collecting bank, business, and hotel records on individuals.

It is used about 200 times a year. Officials say there are other ways to try to get that information, but those ways are more limited and less secret. Roving wire taps are people who switch cell phones. That is used less than 100 times a year.

But officials do say that the Patriot Act is the only way to do that. Effectively and quickly track those people especially when you consider potential ISIS types.

Lastly, wire taps on lone wolves, people who aren't connected to any known terror group. We just found out that that has never been used before and it only applies to people outside the U.S., not American lone wolves.

So this big question of is our national security really going to be at risk depends on whom you ask. The White House's take is why allow any risk especially when privacy concerns can be addressed through this bipartisan bill that the House already passed and the White House wants the Senate to do the same.

BERMAN: Michelle Kosinski for us at the White House.

Time now for an EARLY START on your money, stock futures are slipping ahead of the open. The GDP will be out later this morning. That could give the market some direction. That number expected to show a decline in economic growth during the first quarter, though, the second quarter is expected to have picked up.

Google wants your money. The company is launching Android Pay, its answer to Apple Pay. Tech insiders say it is a big improvement from Google Wallet, which is earlier attempt at mobile payments. Google has been working with major credit cards and U.S. mobile carriers on Android Pay. The open platform will work at more than 700,000 stores across the United States.

It's 38 minutes after the hour. Texas is bracing for more rain this morning as crews search for missing victims. The historic flooding there as we set more rain coming today. Stay with us.

(COMMERCIAL BREAK)

[05:42:37]

BERMAN: All right, we have breaking news out of the flooding in Texas right now. You are looking at pictures from the past few days. We have new information this morning, the National Weather Service in Dallas has issued a flash flood emergency for northeast of Dallas from Garland to Allen.

Significant and life threatening flash flooding occurring near Duck Creek in Garland. Doppler radar indicates over 5 inches of rain has fallen in the region. They will get another 1 to 3 inches before sunrise so some dangerous, dangerous flooding northeast of Dallas. We will keep you updated on that information.

That news coming as of this morning where 23 people have been killed by tornadoes and flooding in the region, 17 in Texas and another six in Oklahoma.

This morning, crews are scouring the wreckage of homes and cars in Hays County and also in Houston, Harris County, and elsewhere searching for at least nine people still known to be missing.

The rain is pouring down this morning. More coming over the course of the day, officials say this danger has not passed.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is the worst over?

UNIDENTIFIED MALE: I don't think so. I would like to say it is, but I'm not sure the worst is over because of the way the weather is running and we are so saturated in almost all parts of Texas.

(END VIDEO CLIP)

BERMAN: The weather pattern also hitting Oklahoma hard. This is the town of Lawton. Four inches of rain fell in some places, fell fast. The water reaching tops of car tires.

More severe weather in the forecast all the way through the weekend, we are talking inches of rainfall. Let's get the latest from meteorologist, Derek Van Dam.

DEREK VAN DAM, AMS METEOROLOGIST: New to CNN overnight, Dallas/Fort Worth breaks its wettest month of May on record with just under 14 inches of rain. That's fallen so far. We still have some time to go.

Here is our forecast rainfall today. Over the next 24 hours, we still have the possibility of 0.25 to 0.50 inch of rainfall across Dallas. Some locations could experience even more that over central and eastern Texas as well as parts of Oklahoma.

That is why we still have our flood watches and flood warnings ongoing through the rest of today and into the early parts of the weekend. We have the possibility of severe weather over the Texas panhandle and we can't rule out the possibility of damaging winds and hail as far as Chicago and Grand Rapids, Michigan.

Let's talk about the cold front responsible for a change of seasons heading into the early parts of next week. We will dry out first and foremost across the area that's experienced the excessive rain.

[05:45:08] But take a look at the temperature drop for the nation's capital, nearly 20 degrees from Sunday into Monday. Enjoy.

BERMAN: All right, again, the breaking news we just learned moments ago, the National Weather Service says there is a flash flood emergency northeast of Dallas. That is in the area around Garland. They are saying significant and life threatening flash floods right now in that area. They got 5 inches of rain overnight expecting another 1 to 3 in the next coming hour so be very careful there.

All right, let's look at what is coming up on "NEW DAY." Alisyn Camerota joins us now -- Alisyn.

ALISYN CAMEROTA, CNN ANCHOR, "NEW DAY": Hi, John. Great to see you. We do have a lot of breaking news because will have the latest on that shocking news that former House Speaker Dennis Hastert is charged with making illegal cash withdrawals allegedly as hush money and lying to the FBI about it. We will look at what he is accused of and why this matters.

Also the GOP field of presidential candidates getting more and more crowded. We will speak with one hopeful, former Pennsylvania Senator Rick Santorum. He will join us live on what he thinks will be different this time around.

Plus, the Pentagon is considering arming Sunni tribal fighters in Iraq to fight ISIS. Is that the right strategy or risky? Our military experts, who have years of experience in Iraq with this, will weigh in. So we'll see you at the top of the hour -- John.

BERMAN: Alisyn Camerota, thank you so much.

CAMEROTA: Thank you, Berman.

BERMAN: FIFA, the world governing body that oversees soccer or football, facing its biggest corruption scandal ever. Yet that man, its leader, expected to cruise to re-election today. How can that be? Coy Wire with the answers in the "Bleacher Report" next.

(COMMERCIAL BREAK)

[05:50:26]

BERMAN: FIFA says pay no attention to the man behind the curtain. They are forging ahead with the presidential election in Zurich despite the widening corruption scandal. Coy Wire with more in the "Bleacher Report." Hi, Coy.

COY WIRE, CNN SPORTS: Good morning, John. Yes, 200 delegates from over 200 countries casting votes for president of soccer's governing body. The current president, the embattled, Sepp Blatter is expected to easily win a fifth term despite all the drama.

He spoke just hours ago vowing to protect FIFA's reputation and distancing himself from the scandal. Listen.

(BEGIN VIDEO CLIP)

SEP BLATTER, FIFA PRESIDENT: I know many people hold me responsible for the actions and reputation of the global football community. We or I cannot monitor everyone all of the time.

(END VIDEO CLIP)

WIRE: Now the U.S. announced yesterday that they will vote for Blatter's opponent, Jordan's Prince Ali for FIFA president, calling it a quote, "vote for good governance and promise for our games."

To the hardwood, the Chicago Bulls fired Coach Tom Thibbedeau after five seasons on Thursday. Despite the fact he had taken the Bulls to playoffs every year he coached. Bulls fan and Chicago sports enthusiast, President Obama, took notice.

While on a Twitter chat about climate change, he was asked about his thoughts on Thibbedeau's dismissal. He tweeted, "Love Thibs. I think he did a great job. Sorry to see him go. But expect he will be snatched up soon by another team." So it looks like Coach Thibbedeau has a pretty good reference on his resume if he needs it.

All right, and finally to football, Adrian Peterson is not happy about his $96 million situation in Minnesota. He went on an epic Twitter rant yesterday complaining about the leverage teams have over players when it comes to contract.

Here is a sample for you. He said, "I love people who think they know it all. Shaking my head, research how many in NFL teams, who hasn't honored a player's contract and learned something."

In another tweet he said, "I know hundreds of players that wished their team would have honored the contract, but instead got through to the side like trash."

So Peterson went to clarify he was not talking about his own situation with the Vikings, but his agent has made it well known that he wants out of Minnesota and his current contract that runs through 2017 has no guaranteed money left on it. Peterson is said to make $12.75 million this season if he suits up for the Vikings, John.

You know this is going to be a big conversation as we head into off- season training camp. Will he show up? When will he show up? All that sort of things.

BERMAN: The absence of guaranteed contracts in football is one of the most stunning things in sports, I got to say. All right, Coy Wire, thanks so much.

WIRE: You're welcome.

BERMAN: It is time to stop procrastinating and go refinance your mortgage. If you wait, it will cost you, an EARLY START on your money next.

(COMMERCIAL BREAK)

[05:57:53]

BERMAN: Time now for an EARLY START on your money. If you have been procrastinating and not refinanced your mortgage and you like to do so, you better do it quick. Mortgage rates hit the highest levels of the year, 30-year fixed rate loans averaged 3.78 percent nationwide, and 15-year fix is now at 3.11 percent. Those are still below rates we saw this last year. A stronger housing market and a looming fed rate hike will likely keep pushing those mortgage rates higher so there.

All right, some big news. One of the most powerful men in all of the United States, the former speaker of the House has been indicted, accused of paying millions of dollars to hide something. What we don't know to hide something in his past. "NEW DAY" picks up with that right now.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Bombshell, a top Republican indicted.

UNIDENTIFIED FEMALE: For lying to the FBI.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: As well as trying to hide large financial transactions.

UNIDENTIFIED MALE: Hush money is being paid to somebody.

BERMAN: The Obama administration says it is fine tuning its ISIS strategy in Iraq.

DAMON: The Sunnis have been asking for weapons for well over a year now.

UNIDENTIFIED FEMALE: They are calling it the freedom of speech rally round two.

UNIDENTIFIED MALE: Aren't you playing into the narrative of ISIS, of al Qaeda?

UNIDENTIFIED MALE: True Islamist terrorism.

UNIDENTIFIED MALE: Why are you resisting?

UNIDENTIFIED MALE: She knows she's pregnant and she's escalating the situation.

UNIDENTIFIED FEMALE: The police in this case escalated the situation.

UNIDENTIFIED FEMALE: I'm not that way. You made me feel a way that I'm not.

[5:59:29] (END VIDEOTAPE)