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Early Start with John Berman and Zoraida Sambolin

Voluntary Evacuations on Two Texas Rivers; Harrowing Tales of Flood Survival; Defense Lab Ships Live Anthrax; The Fight for Ramadi; IRS: Data Breach Originated in Russia; Business Lending on the Rise. Aired 5:30-6a ET

Aired May 28, 2015 - 05:30   ET

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


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[05:31:06] JOHN BERMAN, CNN ANCHOR: Happening now, parts of Texas evacuating as more rain moves in. Rescuers pulling victims from the flood waters. Communities facing historic devastation and it is not over yet, more storms headed their way.

CHRISTINE ROMANS, CNN ANCHOR: Anthrax alert. The U.S. military mistakenly shipping live anthrax across the United States and around the world. Dozens of exposed people are now being tested. We are live with how this happened.

BERMAN: And new setbacks for Iraq in the fight to take back land seized by ISIS. We are live in Baghdad coming up. Welcome back to EARLY START, everyone. I'm John Berman.

ROMANS: I'm Christine Romans. It's 31 minutes past the hour. Happening now, authorities in Texas are ordering voluntary evacuations along parts of two rivers worried that predicted heavy rain today will cause more flash flooding this morning.

This as crews push ahead with clean up from major flooding earlier this week. More than a foot or rain pushed rivers over their banks here in Hays County and elsewhere in Texas.

Houses torn from foundations and cars tossed around downstream. The search for bodies is underway with at least 21 known dead in Texas and Oklahoma. One family outside Houston spent Wednesday searching for the body of 73-year-old Alice Tovar reported missing when she did not show up for work.

(BEGIN VIDEO CLIP)

JESSE YANES, SON OF FLOOD VICTIM ALICE TOVAR: She's cold. She's wet. She belongs at home. That's where we're trying to get her. You just got to do what you got to do.

(END VIDEO CLIP)

ROMANS: Her body was found late in the afternoon less than 100 yards from the crossing where she went missing.

BERMAN: For the very latest on the aftermath of the deadly flooding, let's bring in CNN's Ana Cabrera from Wimberley, Texas.

ANA CABRERA, CNN CORRESPONDENT: John and Christine, residents here are in clean up mode. This flood was catastrophic. In fact, nine cabins on this vacation property were mutilated leaving behind these huge piles of wood and twisted metal and tossed furniture.

The owners of this property say they have had the place in the family for 70 years and they've never seen flooding like this. Normally the Blanco River stays down there. The water rose with such fury and quickly, that some people could not escape.

Several are still missing. In fact, the Texas Task Force-1 has been called in now to lead the search effort. We have seen people searching by helicopter and boat and on the ground along river banks. That is the priority right now, finding those missing.

But we continue to hear stories of survival. Incredible stories like that of Gayle McNeil, who says she barely made it out of her home as the water broke through windows, busted walls, tossed furniture in every direction.

She and her husband got to her car, but then as the water rose around it, the air bags went off. Listen to what happened next.

(BEGIN VIDEO CLIP)

GAYLE MCNEIL, HAYS COUNTY RESIDENT: I couldn't get out. I was driving and my husband was able to get out on that side. This man just appeared and pulled me out. I couldn't get out otherwise.

CABRERA: Who was this man?

MCNEIL: His name is chance. That's all I know.

(END VIDEO CLIP)

CABRERA: As residents like McNeil try to get their feet back under them, the flood threat remains throughout the weekend with isolated thunderstorms still in the forecast that could bring a huge amount of rain in such a short amount of time soaking an already saturated ground. The water just has nowhere to go -- John and Christine.

BERMAN: Ana Cabrera, thank you so much.

We get new harrowing images still coming in from the moments that water tore through houses along the Blanco River. Watch this.

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BERMAN: Caught up in the same flood, three families sharing a vacation cabin in Wimberley, Texas, including Jonathan McComb, his wife and two small children.

The raging water lifted the cabin and carried it downstream that tore it apart along the way. Jonathan McComb's father, Joe, says his son was separated from his family as he fought for survival. (BEGIN VIDEO CLIP)

[05:35:10] JOE MCCOMB, FATHER OF FLOOD SURVIVOR: I just kept praying and saying I have to get out of here. He said I was swimming and trying to swim, grabbing for air. He said I didn't know if I was going up and down.

He has said I have to get out of here. He kept adrenaline driving him. He got up enough to see light at somebody's house, crawled over there. Knocked on the door and told them our house just got washed away and I needed help. His energy level just collapsed.

(END VIDEO CLIP)

BERMAN: Jonathan McComb is in the hospital right now with a collapsed lung and a broken sternum. Everyone else in that cabin is still missing.

ROMANS: More severe weather in Texas on Wednesday afternoon. This tornado touched down all the way up in the panhandle. It damaged a gas drilling rig in Hemphill County, injured three people, two of them critically.

Now the ground is saturated across much of Texas and it will not take much more rain to cause more flooding and there is more rain in the forecast. Meteorologist, Derek Van Dam is tracking today's weather for us.

DEREK VAN DAM, AMS METEOROLOGIST: There is indeed more rain on the horizon. Look at how much has fallen since the beginning of the month, upwards of 20 inches near the border of Oklahoma and Texas, 10 inches near the gulf coast.

We have more rain as I've mentioned upward of two perhaps even 3 inches of rainfall through the end of the weekend specifically near the Wichita Falls area and near the border of Oklahoma and Texas once again.

Just because we don't experience rainfall near the gulf, doesn't mean that the rain that does fall near Oklahoma won't make its way eventually down the rivers and that story is leading to more potential of flooding over the rivers and streams over the southern portions of Texas.

You can see the precipitation moving through the region, more rainfall in store. By the way, there is even the possibility of severe weather in Western Texas today and the Texas panhandle and Oklahoma panhandle and western portions of Kansas and even parts of Nebraska, large hail and damaging winds and isolated tornadoes.

However, some silver lining here, the 6 to 10 day forecast shows a drying trend by the middle of next week.

BERMAN: Tough few days. By next week, it should be better.

Breaking overnight, federal officials have launched an investigation after the Defense Department accidentally shipped live anthrax samples to labs in nine states and a U.S. military base in South Korea.

Officials say no one has become ill and there is no threat to the public. Four defense workers in the U.S. and as many as 22 in South Korea have been put on post-exposure treatment as a precaution.

CNN's Kathy Novak joins us now live from the Osan Air Base in South Korea. Kathy, what's the latest there?

KATHY NOVAK, CNN CORRESPONDENT: John, quite a serious accident we are talking about here. We know just how deadly anthrax can be when it is airborne. It can be used as a biological weapon. We saw five people die in 2001 when it was sent in the U.S. mail.

Now we are learning in this case, it was sent through a commercial carrier packed up from Utah and shipped to nine states and all the way here to South Korea. They thought it was inactive and it was used in a routine training exercise.

Twenty two people involved may have been exposed. We are told that they are not showing any signs of exposure. They have been given antibiotics and some of them have been given vaccination as a precaution.

But the big question, the investigation, is just how did this happen. The CDC and the Pentagon working on looking into that and finding out how this was allowed to happen -- John.

BERMAN: I think those are huge questions. It just doesn't seem possible that you would ship live anthrax halfway around the world. Kathy Novak, thanks so much.

The Iraqi government is suffering setbacks in its quest to take back territory seized by ISIS. We will go live to Baghdad with new developments next.

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[05:42:29] BERMAN: Turning now to the Middle East and the battle for Ramadi. The Iraqis insisting they have launched a major offensive to retake the city from ISIS. But Pentagon officials say they see no sign of Iraqi forces inside the city of Ramadi.

ISIS appears to be fortifying its hold on that city laying road side bombs and booby traps while bringing in new supplies. CNN's senior international correspondent, Nick Paton Walsh, is monitoring developments live from Baghdad. What's the latest?

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: At this stage, I believe, people are still trying to work out quite how the substantial rhetoric of 48 hours ago, the launched operation to liberate Anbar is translating to the ground.

Mixed results really to Iraq Security Forces, a very bloody instant, 30 of them lost their lives to a number of car bombs near Fallujah near Anbar, but close to Baghdad where I'm standing, Fallujah, being one of two centers that ISIS controls. The other one is Ramadi. Iraqi Security Forces got to the outskirts of Ramadi near Anbar University. They are saying they are forming a semi- circle around the south, all complex operations ahead.

We saw ourselves near the oil refinery, far from Anbar, but a key part of the operation to liberate it and Iraqi terminology is how slow that is. It is a refinery. ISIS have dug in they say with 1/5 of this.

We saw the Iraqi Special Forces taking the fight they said to them opening fire on ISIS positions. They have to move slowly. They have to move in a considered fashion. They have the ammunition and people they need, but they need to take it slow.

That replicated around Ramadi, too. The U.S., I think slowly is passing judgment day by day as far as the operation going. We are seeing slow progress at this stage and I think many seeing, too, that ISIS will use that advantage to dig further in to the toughest fight in Ramadi -- Christine.

ROMANS: All right, Nick Paton Walsh for us in Baghdad. Thanks, Nick.

BERMAN: The IRS touting cyber breach exposing data for more than 100,000 taxpayers originated in Russia. The agency says organized crime syndicates were able to access tax records and file $50 million in fraudulent returns. Cyber-security is a big problem at the IRS for years. Lawmakers now plan to question the IRS commissioner next week.

[05:45:07] ROMANS: You know, it wasn't a hack. It was stolen information used to access real people's histories. That is the holy grail of identity fraud.

Time for an EARLY START of your money, Asian stocks much lower, look at Shanghai, this is the big story in shares this morning, down 6.5 percent in Shanghai pulling back from huge gains this year.

European stocks, U.S. stock futures are down. They are raising margin requirements in Shanghai. Just this morning, a fed official said higher interest rates are coming later this year and will keep moving higher in the next few years. That is getting an awful lot of attention as well and causing pressure in shares and stock prices.

FIFA's big corporate sponsors are worried, but so far they are not backing out of any deals over corruption charges. Overnight, Visa warned the world's premier soccer organization clean up your act.

Quote, "It is important that FIFA makes changes now. Should you fail to do so, we have informed them, we will reassess our sponsorship." Other major sponsors are also expressing concern, Coca-Cola, McDonald, Adidas and Budweiser.

Adidas and Visa pay about $32 million a year for their partnerships with FIFA. Coca-Cola, McDonald's, and Budweiser, pay about $19 million each.

BERMAN: And then now Vladimir Putin, by the way, lashing out at the U.S. for its FIFA investigation saying, why are you investigating FIFA? You got no right to do this.

ROMANS: Basically saying it's a conspiracy to make Russia look bad.

Rick Santorum is officially running for president after coming so close to capturing the Republican nomination in 2012. Can he do it this time around? What he told CNN next.

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[05:50:26]

BERMAN: He was the runner up in the race for the Republican nomination four years ago. Now Rick Santorum is in it again. Let's get more now from CNN's Joe Johns at the Santorum campaign kickoff.

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: John and Christine, Rick Santorum kicking off his campaign for president here at this manufacturing plant just ten miles down the road where he grew up in Pennsylvania.

Striking mostly conservative themes as expected saying he will fight for working Americans in this race for the White House. He had a surprisingly strong run for the Republican nomination four years ago and he is back at it again, though this time he faces more competition.

The last time, he finished second behind Mitt Romney, but no one is calling him a frontrunner. He did it on a shoe string and shoe leather last time. This time he's got a lot more support.

Santorum has more organization than the last time around. He says he has people working for him in all 99 counties of Iowa and in other states. His supporters are not expecting Santorum to change the message from drastically from four years ago because it helped him win Republican primaries in 11 states.

That includes his appeal to social conservatives, but it is clear he has tweaked his message and adjusted the focus a bit. Listen.

(BEGIN VIDEO CLIP)

JOHNS: When you think Rick Santorum being the runner up four years ago doesn't make you the frontrunner this time?

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: Well, I mean, if you look at what I had to do when I left the race, I have seven kids. I had to go to work. I had to provide food for my family. I wasn't in front of your TV very often over the last three years. I just couldn't be.

I mean, I have responsibilities to my family. That may have something to do with it. That doesn't matter. I did what I felt was right for my family. Now here I am.

(END VIDEO CLIP)

JOHNS: Today and tomorrow, Santorum heads off to Iowa where he narrowly won the caucuses four years ago. Then off to the early voting state of South Carolina -- John and Christine.

BERMAN: Won Iowa by 34 votes, landslide. It took two weeks to certify the results.

ROMANS: All right, 5:52 in the morning in the east. Debt free college, sounds so nice, sounds like a fantasy. Too good to be true? The idea is gaining some powerful backers in Congress. That's next.

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[05:56:45]

ROMANS: I'm Christine Romans. Let's get an EARLY START on your money this morning. Banks are lending big money to businesses again. Commercial and industrial loans rose 8.5 percent in the first quarter.

If it continues at that pace, businesses will overtake residential mortgages for the first time since the 1980s. What is happening here? Companies are ramping up borrowing to get ahead of the interest rate hike. It is also further evidence that businesses have come back stronger while consumers have trailed.

Graduate college debt free? Sounds pretty good, right, and maybe unbelievable. More Democrats would like to make that reality. Just yesterday, nine more Democratic senators said they support a resolution by Senator Elizabeth Warren and others.

It backs more federal government help to support states and increase financial aid for students. It also aims to curb soaring tuition costs.

Presidential hopeful, Bernie Sanders has a very specific bill. He introduced a bill to eliminate tuition at all public colleges. So interesting he would pay for that with a tax Wall Street, which is virtually never going to happen. It's interesting, this kind of populous push to make college debt free for people.

BERMAN: I don't think anyone supports higher college tuition. The question is how to get it free.

Live anthrax shipped around the United States and around world. The U.S. military now admits to a big mistake. "NEW DAY" starts right now.

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ANDERSON COOPER, CNN HOST, "AC360": The U.S. military mistakenly shipped live anthrax samples to research labs.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Shipments were made to nine states.

JAKE TAPPER, CNN HOST, "THE LEAD": This is one of the deadliest pathogens in existence. How did this happen?

UNIDENTIFIED FEMALE: Individuals that are sympathetic and radicalizing.

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": The growing threat posed by ISIS sympathizers right here inside the United States.

UNIDENTIFIED MALE: Calling publicly for attacks in the west.

CABRERA: Are you prepared to make a river rescue of some sort?

UNIDENTIFIED MALE: Yes, ma'am.

UNIDENTIFIED MALE: We are preparing for the worst and hoping for the best.

SANTORUM: I am running for president of the United States.

UNIDENTIFIED FEMALE: Really trying to appeal to blue collar voters.

JOHNS: Why do you think that being the runner-up four years ago doesn't make you the front runner this time?

(END VIDEOTAPE)

CHRIS CUOMO, CNN ANCHOR: Good morning and welcome to your NEW DAY. It is Thursday, May 28th, 6:00 in the east.

Live anthrax was shipped via commercial carrier to nine states and a military base in South Korea. Four people in the U.S. and nearly two dozen at the Osan U.S. air base are now getting emergency medical treatment for possible exposure. And all of it came from the Defense Department.

ALISYN CAMEROTA, CNN ANCHOR: So officials scrambling to see if any other live samples were accidentally shipped. How could this happen with these supposed safeguards in place? CNN's Pentagon correspondent, Barbara Starr is live this morning with more. Good morning, Barbara.

STARR: Good morning, Alisyn. At Osan Air Base in South Korea, in nine states across the country questions about how did this happen. The Pentagon is taking days to fully reveal any of the details.

(BEGIN VIDEOTAPE)

STARR (voice-over): This morning fear that up to 22 Air Force personnel may have been exposed to anthrax at an air base in South Korea.

[06:00:04] An investigation now under way as officials at Osan Air Base say an army lab in Utah inadvertently shipped live anthrax samples to them and facilities in nine states over the past few days. 22 people now being monitored in South Korea join four workers in the U.S. who have received preventative post-exposure treatment.