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American Morning: Wake Up Call

Penn State's Wall of Silence; Obama Boosting Military in Australia; Detroit Broke By July 2012; Protesters To Return Without Tents; McQueary E-Mail: I Stopped Sandusky

Aired November 16, 2011 - 05:00   ET

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


CAROL COSTELLO, CNN ANCHOR: The wall of silence surrounding Penn State. Was the university allowed to keep secrets about a child sex abuse scandal for years? A CNN exclusive straight ahead.

President Obama down under, arriving in Australia with big changes in mind for the U.S. military. Why China is watching.

And history for Coach K. A milestone win for a legendary college coach as locked-out NBA players watch from the stands.

(MUSIC)

COSTELLO: And good morning to you.

This is your A.M. WAKE-UP CALL for Wednesday, November 16th. From the Time Warner Center in New York, I'm Carol Costello.

Here are this morning's top stories:

A Penn State assistant coach fighting back this morning, saying, I stopped Jerry Sandusky. Coach Mike McQueary reportedly e-mailing former teammates and speaking for the first time about the alleged child sex assault he says he witnessed.

Wall Street protesters are allowed back into their home base at New York Zuccotti Park, but without all of their stuff. A judge saying no more tents or generators allowed. Occupy members saying it will only make their resolve stronger, and they plan to shut down Wall Street tomorrow.

President Obama arriving in Australia this morning. He's expected to announce that he's boosting the U.S. military presence there as China eyes a bigger role in the Pacific, but the White House saying this isn't a turf war.

Let's get a check of the forecast now, shall we? Jacqui Jeras is in this morning.

Good morning, Jacqui.

JACQUI JERAS, AMS METEOROLOGIST: Good morning, Carol.

Real soupy start across much of the east this morning. Foggy conditions, rain and mist. And even severe thunderstorm. Look at that, those are tornado watches we're talking about across parts of Louisiana, on up to Mississippi and Alabama. Damaging winds, large hail and some few tornadoes are going to be possible.

And this line is going to be intensifying as we head throughout the day today. So, as those severe storms will spread eastward into Atlanta, up on toward Charlotte, and even into Raleigh. Now, we're looking at rain in the Northeast, Carol, but nothing severe there, we don't think. Though you will hear a few rumbles of thunder. That's going to affect your drive in and your drive out.

Temperatures are much colder behind this front. Take a look at the highs today in Minneapolis -- 37, 42 in Chicago. You can really see the difference of where that cold front is with 75 today in Atlanta, and 85 in New Orleans.

We'll talk more about what this big mess is going to do to your travel plans today. Heads up, it's not looking good. I'll tell you about that in about 15 minutes.

COSTELLO: Can't wait. Thank you, Jacqui.

A Penn State assistant coach fighting back this morning. Mike McQueary speaking out for the first time about the child rape he says he witnessed as a graduate assistant back in 2002 allegedly at the hands of the retired coach Jerry Sandusky. McQueary's reportedly been e-mailing former teammates, saying the grand jury got it wrong when it concluded he did nothing to stop the abuse.

He also says he went to the cops, which is huge. In an e-mail obtained by "The Morning Call" newspaper of Allentown, Pennsylvania, McQueary writes, "I did stop it. Not physically but made sure it was stopped when I left that locker room."

McQueary also said he did have discussions with police and with the official at the university in charge of police.

CBS's Armen Keteyian also caught up with the coach.

(BEGIN VIDEO CLIP)

ARMEN KETEYIAN, CBS NEWS: Do you have any idea when you think you might be ready to talk?

MIKE MCQUEARY, PENN STATE DEFENSIVE COORDINATOR: This process has to play out. I don't have anything else to say.

KETEYIAN: OK.

And then just one last thing. Describe your emotions right now.

MCQUEARY: All over the place. Just kind of shaken.

KETEYIAN: Crazy?

MCQUEARY: Crazy.

KETEYIAN: You said what? Like a --

MCQUEARY: Snow globe.

(END VIDEO CLIP)

COSTELLO: That new e-mail raising all kinds of questions about the wall of silence surrounding Penn State. And it turns out that taxpayer-funded school is legally allowed to keep some records a secret.

CNN's Drew Griffin has more in this exclusive special investigation.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: Carol, it's the type of information we would normally get in the United States from any public institution, especially a police department -- the records, the incident reports, all the information you rely on to get the facts to know who knew what when and where. But Penn State, you will not find that because Penn State got itself an exemption from this state's open records act.

At the same time in 2000 to 2008 when the legislature was discussing this new law, Penn State's president personally went to the legislature and asked to be exempt to make sure the records were kept private.

TERRY MUTCHLER, EXECUTIVE DIR., PENNSYLVANIA OPEN RECORDS: What that means in essence is that while every other commonwealth agency, governor's office, police departments, townships, school districts, are subject to this law and would be required to provide public record, Penn State is exempt. That came as a result of a series of lobbying efforts through the House of Representatives that was taking a look at rewriting Pennsylvania's right-to-know law which was really among the worst in the nation.

And at that juncture, the president of Penn State was one of the key lobbyists testifying before the House committee on -- I believe it was August 7th, 2007, seeking an exemption for Penn State.

GRIFFIN: Carol, we did try to reach Graham Spanier at his home. We did not get an answer from the former Penn State president, but we know what he told the legislature when he was seeking this exemption. He said he wanted Penn State to be exempt from the records because he needed to protect the competitiveness of the university. That he was concerned about the cost of compliance and that a huge bureaucracy would have to be built to answer questions and open those public records.

Looking back on it now, it has a whole different look -- Carol.

(END VIDEOTAPE)

COSTELLO: Drew Griffin reporting, thanks.

Occupy Wall Street protesters back in Lower Manhattan's Zuccotti Park overnight, but they're not as comfy. Last night, a judge ruled the protesters who were cleared out of the park in a surprise raid by police hours earlier could come back but without the tents, the tarps, generators and the camping equipment. Protesters say they were not allowed to lie down or even sit. One tweeted they're wandering around like ants after you knock over the ant hills.

And it's getting much tougher for the 99 percent across the country, and even the continent this morning. It looks like it could be the beginning of the end for Occupy Dallas. The mayor there saying they have one more night after a federal judge cleared the way for the eviction of protesters near city hall.

North of the border, a judge siding with protesters who set up camp near Toronto's financial district. They were all put on notice yesterday, but a last-minute injunction stopped police from moving in at midnight.

And in Boston, hundreds marched to protest the eviction of Wall Street protesters in New York City. But the Boston mayor is saying there no plans to give them the boot out of Dewey Square as long as things remain peaceful.

Just a few hours ago, President Obama arrived in Australia. It is his first time on Australian soil as commander-in-chief. He's there to announce an expanded U.S. military presence in the country.

The move coming as China expands its military reach in the Pacific. China's first aircraft carrier hit the water a few months ago. The White House saying it's important to the peaceful development of the region.

CNN's White House correspondent Dan Lothian is traveling with the president. He joins us live from Canberra, Australia.

Good morning, Dan.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Good morning.

President Obama, along with Prime Minister Gillard made that announcement earlier today here in Australia. What -- under this agreement, some 250 U.S. Marines will, in the middle of next year, head to the northern part of Australia, in Darwin, and in that northern region. And then that number, over the next several years, will increase to about 2,500 Marines as part of a task force. This is all part of this new arrangement that the U.S. and the Australians believe is critical in order to secure the Asia-Pacific region.

President Obama saying that this deepening relationship shows the U.S. commitment to that region.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Our U.S. Marines will begin rotating through Darwin for joint training and exercises. Our Air Force will rotate additional aircraft through more airfields in northern Australia. These rotations which are going to be taking place on Australian bases will bring our militaries even closer and make them even more effective. It will enhance our ability to train, exercise and operate with allies and partners across the region. And that, in turn, will allow us to work with these nations to respond even faster to a wide range of challenges. Including humanitarian crises and disaster relief, as well as promoting security cooperation across the region.

(END VIDEO CLIP)

LOTHIAN: Now, Carol, as you pointed out, the looming Chinese military presence is one of the big concerns. And a senior administration official is saying that that is part of the reason why this agreement was forged. But President Obama made it clear that fear -- having any fear of China was not behind this.

I should point out, though, that China has been pushing back since that announcement was made, at least according to an AFP report. They're showing some skepticism, saying -- a Chinese official saying that this deal may, quote, "not be quite appropriate."

So, I asked a senior administration official to comment on that. This official telling me that it's not only appropriate but necessary to deal with some of the challenges in this region -- Carol.

COSTELLO: Dan Lothian reporting live from Australia this morning -- thanks so much.

A new effort on Capitol Hill, a team effort to end the gridlock to get America working again. Republican Senator Marco Rubio and Democratic Senator Chris Coons unveiled a new bipartisan jobs proposal. They say it includes a series of tax, immigration and other proposals that could boost hiring and that the bill can prove that Congress isn't really so dysfunctional.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO (R), FLORIDA: People want to see jobs being created. They want government to do what it can. And most importantly, people of all persuasions look at us and say at least, you know, work together on the things you agree on.

And there's plenty to fight on. I mean, there's plenty of disagreement on other issues. I don't think there's any shortage. That's why we have elections.

But these are the things we agree on. There's broad bipartisan support. If we agree on them, we should pass them, because the people deserved us to be working for them.

(END VIDEO CLIP)

COSTELLO: This new effort comes as senators butt head over key parts of President Obama's $447 billion jobs bill.

House GOP leaders now lining up calling for Attorney General Eric Holder's job. They want him to resign over his role in the botched Fast and Furious gun-running operation.

(BEGIN VIDEO CLIP)

REP. BLAKE FARENTHOLD (R), TEXAS: Mr. Holder, tell us what you knew. Tell us who else knew. Do the right thing and take responsibility for the actions you authorized.

(END VIDEO CLIP)

COSTELLO: Fast and Furious allowed thousands of illegally sold weapons to cross into Mexico in an effort to track them. Two of the guns were found at the murder scene of a border patrol agent. His name is Brian Terry. Those guns found last December.

Still to come, the GOP's new favorite, Newt Gingrich. His campaign is getting lots of steam and money, but can he keep it going?

And another big bank says it will make the switch. JP Morgan Chase ending its controversial debt card usage fee along with a couple of other fees. Details straight ahead.

Plus, a big congrats this morning for Coach K. He's made it into the record books.

(COMMERCIAL BREAK)

COSTELLO: It is 15 minutes past the hour. This is your A.M. WAKE-UP CALL.

Here's what's all new this morning:

The Penn State assistant coach who witnessed an alleged sexual assault by former Penn State coach Jerry Sandusky speaking out for the first time. In an e-mail obtained by "Morning Call" newspaper, Mike McQueary said he handled the matter immediately, speaking with police and a university official.

The place where Occupy Wall Street is pretty deserted. A judge says protesters can continue to gather at Zuccotti Park, but they can't sleep there anymore. He's told them to leave their tents, tarps and generators behind.

In other news, Chase is scrapping three bank fees it had been testing in various parts of the country. Among the charges being pulled, a $10 and a $15 monthly checking account fee and a $3 fee to use your debit card.

In the world of sports, Duke basketball Coach K making history. Last night, he set the record for the most wins by a Division I coach. The win number 903 of his coaching career broke a tie with Bobby Knight.

Let's get a check of today's weather. Jacqui Jeras is in Atlanta with kind of bad news if you're traveling this morning.

JERAS: Yes, it really is. Take a look at this picture, Carol. This kind of sums it up for you.

This is downtown Atlanta. You can see just kind of the gloom lingering over the city. There's going to be a lot of rain, especially across the Southeast today. That's going to be heavy.

And when you get a low cloud deck like that, you know it means trouble at the airport because all of those planes have to line up and shoot that approach to go ahead and land. So, we're expecting major delays today, over an hour, not just in Atlanta but also in the Northeast airports.

Looking for New York City, D.C., Philadelphia seeing those big delays, also places like Memphis and Nashville will see some thunderstorms. Some of those could be on the strong side. And then Boston and Charlotte also looking for delays, probably under an hour there.

There is a severe threat today. So, those storms could be producing tornadoes, damaging winds and large hail. And that threat stretches from the Deep South on up towards, say, the Mid-Atlantic States, and that includes the Carolinas.

So be aware of that as you have travel plans for today. And the system goes all the way up the East Coast, but we don't think the thunderstorms will be severe across the Northeast. Much colder air on the backside of it, so get ready for that big change in the season.

As we take a look at a map like this, Carol, I like to say it doesn't take a meteorologist to figure out where the cold front is, does it?

COSTELLO: No.

JERAS: Thirty-seven in Minneapolis and 75 in Atlanta. That's quite the swing there.

COSTELLO: You're not kidding. Jacqui Jeras, thank you. We'll get back to you.

Chaos in Syria this morning as the leading opposition group is now calling for U.N. peacekeepers to plea for help coming amid a backdrop of new violence. At least 10 people were reportedly killed yesterday.

Our Rima Maktabi is live in Abu Dhabi.

Rima, give us the latest.

RIMA MAKTABI, CNN INTERNATIONAL CORRESPONDENT: Carol, activists and opposition members are saying that 400 people have been killed since November 2nd when the Arab League proposed a peace initiative. And we're talking two weeks ago.

And the casualties, Carol, are coming from two sides. The biggest number of deaths is coming from the opposition. However, armed groups are also firing at the Syrian army and government security forces and killing some of them -- Carol.

COSTELLO: So how are Arab countries helping the Syrian people?

MAKTABI: Over the past one week, we've seen very active diplomacy coming from Arab countries and the international community. Now, let's start with the U.S. position and here, Mark Toner, the foreign service officer, what he said.

(BEGIN VIDEO CLIP)

MARK TONER, DEP. STATE DEPT. SPOKESPERSON: I think what we're seeing here and continue to see is that, you know, the drumbeat of international pressure is increasing on Assad.

(END VIDEO CLIP)

MAKTABI: So, the U.S. position has been very clear. Arab League is meeting today in a few hours and will take more measures to help the people on the ground and the civilians. King of Jordan, King Abdullah, said to Assad a few days ago, he said, if I were Assad, I would have stepped down. So, indeed, pressure is mounting -- Carol.

COSTELLO: Pressure is mounting, but you've got to wonder, though, is diplomacy enough?

MAKTABI: It may not be enough. Casualties are taking place every day in Syria. The opposition has become armed over the past few weeks. However, who's going to help the opposition with arms, with money, with medical supplies? And now, the opposition is saying, why don't you apply a no-fly zone like you did in Libya?

So indeed, decisions are not enough for those people in Syria.

COSTELLO: Rima Maktabi, reporting live this morning, thanks so much.

The time is now just about 20 minutes past the hour.

Still ahead, President Obama pledges to stick to his new rule when it comes to the GOP presidential hopefuls.

Plus, you may have noticed something different at your local Starbucks. The coffee giant forced to make at least one price adjustment after a consumer agency discloses a little secret. We'll have details for you straight ahead.

Stay with us.

(COMMERCIAL BREAK)

COSTELLO: Holy cow, the markets squeak out a win. A batch of better-than-expected news about the economy temporarily overshadowed concerns about the European debt crisis, and that helped push al three indexes higher. The Dow was up 17 points, the NASDAQ gained 29 points, and the S&P 500 was up six.

Welcome back to A.M. WAKE-UP CALL.

In other money news this morning, the Postal Service reports an annual loss of $5.1 billion. Declining mail volume is one reason for the loss. The other, an increase in health care costs.

Shares in the professional social networking company LinkedIn are about to flood the market. One of the company's early backers is selling its entire 3.7 million shares in the company.

Starbucks is making price changes all across the country. This after a consumer agency catches the coffee giant overcharging.

Christine Romans joins us now with the story.

Ooh, what's going on?

CHRISTINE ROMNAS, CNN BUSINESS CORRESPONDENT: I started in Massachusetts. "The Boston Globe" first had this story. Massachusetts sort of business regulatory arm found that some of these Starbucks were charging more for the half-pound bag of coffee than for the full found bag.

For example, a pound of coffee was $11.97. But when it was the half pound bag, it wasn't after that, it was half that plus $1.50 surcharge.

And a Massachusetts regulator said that was a secret surcharge that was not appropriate and actually fined them for five or six different locations. And now, according to "The globe," Starbucks has dropped that surcharge.

But I'll tell you, here's the takeaway for vigilant consumers -- a lot of different products either secretly or not so secretly, the smaller the packaging, the more you're paying per pound. That's why so many of those grocery store chains put the price per pound right there on the grocery store shelves.

So make sure you're checking because I bet you millions and millions of people were paying more for less.

Starbucks actually in "The Globe" story was quoted as saying that quite frankly, it costs them more to package a smaller amount. More packaging, more labor to put it into smaller bags. And that's why they were charging more.

But they have dropped that surcharge -- Carol.

COSTELLO: So, I guess that excuse wasn't good enough.

Let's talk about Facebook and security and porn.

ROMANS: Another consumer take-away for you is that this is why one of the many reasons why there are all kinds of limitations about the age of people to be on these things. You don't want kids on some of these social networking sites.

And, boy, you certainly didn't want them on yesterday because some kind of a browser attack and some browsers caused the news feeds on Facebook to be spewing out very violent pornography, PhotoShopped images of people like Justin Bieber in compromising images, even at least one image of an abused dog.

One of the stuff was pretty explicit and pretty, pretty nasty. And some folks reported they were seeing this on there as this virus or this hack attack exploited those browsers and spread these violent images. Remember, there are age limitations for who should be on there.

Always -- with children online, always make sure you're watching what they're going to see first, because I'm sure there were people who were quite surprised by what was coming up there yesterday. But Facebook says it's got it under control this morning.

COSTELLO: Well, that's good. That would certainly get my attention.

Christine Romans, thanks so much. See you in a bit.

ROMANS: You're welcome.

COSTELLO: Still to come, one of the menstrual to the case against the former assistant football coach Jerry Sandusky is speaking out for the first time. We'll tell you what Mike McQueary is saying.

Plus, why Republican presidential candidate Rick Perry wants to turn Congress into a part-time gig.

It's 26 minutes past the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I am much like Reagan and Margaret Thatcher. I am such an unconventional political figure.

(END VIDEO CLIP)

COSTELLO (voice-over): He's the new guy on the block who's been around for more than 30 years. Newt Gingrich now surging in the polls. Can he convince the Tea Party? He's an outsider and something fresh at the same time?

(END VIDEO CLIP)

COSTELLO (on-camera): And good morning to you. This is your A.M. WAKE-UP CALL for Wednesday, November 16th. I'm Carol Costello. Here are this morning's top stories. The Penn State assistant coach fighting back this morning saying "I stopped Jerry Sandusky." Coach Mike McQueary reportedly e-mailing former teammates and speaking for the first time about the alleged child sex assault he says he witnessed.

Approaching D-Day in Detroit. Mayor Dave Bing will talk today about the city's financial crisis. The speech comes just days after a report revealed the possibility that the city will go broke by July 2012, unless, immediate and drastic cuts are made.

And after a rude awakening early yesterday morning, Wall Street protesters won't be allowed back into their home base at New York Zuccotti Park but without all their stuff. A judge saying no more tents or generators allowed.

Let's get a check of today's weather. Jacqui Jeras standing by in Atlanta. Good morning, Jacqui.

JACQUI JERAS, AMS METEOROLOGIST: Hey, good morning, Carol. We got a lot of storms to deal with to start people up this morning. A few of you of may be waking up a little early because you're hearing the thunder out there. Showers and storms all across the Deep South and heavy rain across the Ohio Valley. It's just kind of sprinkling more than anything in the northeast at this hour.

We do have the threat of tornadoes for parts of Louisiana, Mississippi, and Alabama. This includes you in New Orleans, stretching on up towards Birmingham. I think the wider threat, though, will be damaging winds and large hail, but we can't rule out a couple of twisters with this for today.

These storms are going to continue to intensify, I think, as they head east throughout the day today. So, places like Atlanta, Charlotte and Raleigh will get in on the action as we head into the afternoon hours. A big change, though, behind that front as temperatures drop by as much as 20 degrees for a few of you.

It's going to be downright cold and windy today in places like Minneapolis, Chicago, even Kansas City with 48 and those strong winds. It's not going to be feeling great, but man, it feels like summer still for mid-November across parts of the southeast. Seventy-four in Atlanta, 85 in New Orleans.

Carol, you're stuck with me today because you know where my colleague is, right?

COSTELLO: No. Where did he go?

JERAS: Rob Marciano? He's having a baby today.

COSTELLO: Well, he is not having a baby.

JERAS: Well, you know.

COSTELLO: He's watching his wife have a baby.

JERAS: Exactly.

COSTELLO: Do we know if it's a boy or a girl?

JERAS: We do. It's a girl, right? Yes. It's a girl.

COSTELLO: Girl?

JERAS: Yes.

COSTELLO: Aww. That's so -- I can't wait to see the pictures because I'm sure it will be a beautiful baby.

JERAS: I hope all goes well today.

COSTELLO: Yes. I'm sure it will. Jacqui, thank you.

A Penn State assistant coach fighting back this morning. Mike McQueary speaking out for the first time about the child rape he says he witnessed as a graduate assistant back in 2002 allegedly at the hands of retired Coach Jerry Sandusky. McQueary's reportedly been e- mailing former teammates saying the grand jury got it wrong when it concluded he did nothing to stop the abuse.

McQueary also said he did go to the cops which is huge. In an e- mail obtained by "The Morning Call" newspaper of Allentown, Pennsylvania, McQueary writes, "I did stop it, not physically, but made sure it was stopped when I left that locker room."

He also says he did have discussions with police and with the official at the university in charge of police. CBS News' Arman Keteyian also caught up with the coach.

(BEGIN VIDEOTAPE)

ARMAN KETEYIAN, CBS NEWS: Do you have any idea when you think you might be ready to talk?

MIKE MCQUEARY, PENN STATE ASST. FOOTBALL COACH: This process has to play out. I just don't have anything else to say.

KETEYIAN: OK. And then just one last thing. Just describe your emotions right now.

MCQUEARY: All over the place. Just kind of shaken.

KETEYIAN: Crazy?

MCQUEARY: Crazy.

KETEYIAN: You said what? Like a --

MCQUEARY: Snowblower.

(END VIDEOTAPE)

COSTELLO: As for Jerry Sandusky, he denies he's a pedophile but admitted publicly that he has showered with young boys.

After the Penn State scandal, Senator Robert Menendez, a Democrat from New Jersey, is saying failure to report child abuse should be a felony. He introduced new legislation that would do just that last night.

(BEGIN VIDEO CLIP)

SEN. ROBERT MENENDEZ, (D) NEW JERSEY: The Child Abuse Responsibility and Enforcement Act would do three things. Number one, it makes it the law of the land that, in fact, you have to report. You have an obligation under the law to report acts of child abuse.

Two, that you have to report that to a police department and the social service agency of that state. And number three, that failure to do so would mean a year -- potentially a year in prison.

(END VIDEO CLIP)

COSTELLO: The president even weighed in on the Penn State scandal last week saying that it shows people need to step up in similar situations.

That new McQueary e-mail raising all kinds of questions about the wall of silence surrounding Penn State. And it turns out the taxpayer-funded school is legally allowed to keep some records a secret. CNN's Drew Griffin has more on this exclusive special investigation.

DREW GRIFFIN CNN INVESTIGATIVE UNIT CORRESPONDENT: Carol, it's the type of information we would normally get in the United States from any public institution, especially a police department, the records, the incident reports, all the information you rely on to get the facts to know who knew what, when and where.

But Penn State, you will not find that because Penn State got itself an exemption from this state's open records act. At the same time in 2000, 2008, when the legislature was discussing this new law, Penn State's president personally went to the legislature and act to be exempt to make sure the records were kept private.

(BEGIN VIDEO CLIP)

TERRY MUTCHLER, EXECUTIVE DIR., PENNSYLVANIA OPEN RECORDS: What that means, in essence, is that while every other commonwealth agency, governor's office, police departments, townships, school districts are subject to this law and would be required to provide public record, Penn State is exempt.

That came as a result of a series of lobbying efforts through the House of Representatives that was taking a look at rewriting Pennsylvania's right-to-know law which was really among the worst in the nation. And at that juncture, the president of Penn State was on of the key lobbyists testifying before the House committee on -- I believe it was August 7th, 2007, seeking an exemption for Penn State.

(END VIDEO CLIP)

GRIFFIN: Carol, we did try to reach Graham Spanier at his home. We did not get an answer from the former Penn State president, but we know what he told the legislature when he was seeking this exemption. He said he wanted Penn State to be exempt from the records because he needed to protect the competitiveness of the university.

That he was concerned about the cost of compliance, and that a huge bureaucracy would have to be built to answer questions and open those public records. Looking back on it now, it has a whole different look -- Carol.

COSTELLO: Drew Griffin reporting.

Coming up later on "AMERICAN MORNING", we'll talk with Sara Ganim, crime reporter for the "Patriot News." She was one of the first reporters on the story. It has become our go-to stores. We'll talk with Sara in about an hour.

New this morning, the archdiocese of Chicago will pay $3.2 million to settle a lawsuit that alleged church leaders failed to remove a priest whom they knew sexually abused minors. That's according to the plaintiffs' attorneys. The priest in question is Father Daniel McCormack. He pleaded guilty to the charges back in 2007.

Rick Perry wasn't kidding when he said he wanted to dismantle Washington. He announced his plan to uproot, tear down, and rebuild Washington yesterday. That includes a part-time Congress with fewer members and half the budget.

One member of Congress, House minority whip, Steny Hoyer, questioned whether Perry's being serious or just pandering to the Tea Party. Perry responded, "I'm serious. You'd better believe it."

Well, Rick Perry's done it, so as Herman Cain, and now, it's Newt Gingrich who is surging in the polls as Mitt Romney's top Republican rival. That's according to a new CNN/ORC poll, but can the former House speaker keep going? Joining me from Santa Monica, California, is Holly Bailey, the senior political reporter for Yahoo! News. Good morning, Holly.

HOLLY BAILEY, YAHOO! NEWS: Good morning.

COSTELLO: Thanks for joining us. You know, Gingrich is comparing himself to two conservative giants and assessing what went wrong with his campaign early on. Let's listen.

(BEGIN VIDEO CLIP)

GINGRICH: I am much like Reagan and Margaret Thatcher. I'm such an unconventional political figure. You really need to design a very unique campaign that fits the way I operate and what I'm trying to do.

(END VIDEO CLIP)

COSTELLO: So, he's comparing himself to Margaret Thatcher?

BAILEY: Yes, yes. You know, what's really interesting about this is about Newt Gingrich, you know, the big question is, this race has been, so far, so much about people trying to find an alternative to Mitt Romney. I think the big question is whether Newt Gingrich is going to be that person, but debates have really helped him.

He's really impressed a lot of Republican voters, but there hasn't been a lot of scrutiny of Gingrich, you know, for the pointing out some of his more moderate views and also sort of scrutiny of his, you know, his own personal life. Early on, there was a lot of criticism about the fact that he had been divorced in the past.

And we've seen in Iowa this week, there's people putting flyers under doors in Des Moines, sort of raising that question again. So, all of that stuff is going to come back to haunt him, it looks like.

COSTELLO: Well, he sort of has a tendency for gas. And we did see that early on in the campaign. You know, like you said. So, I guess he just has to temper himself, maybe, and maybe he'll float on through?

BAILEY: Yes, a little bit. I mean, I think one thing that's been really impressing voters is the fact that he's used these debates. He's used these appearances, you know, to get national attention to focus more on Obama and not attack his fellow Republican rivals. And I think that's one thing that's really, really helped him.

COSTELLO: On another topic, I know you've been following the story about Jon Huntsman, getting a little monetary help from his dad. Tell us about that.

BAILEY: Well, a Super Pac is running ads this week, starting to run ads this week in New Hampshire. It's a Pac called "Our Destiny." And it's basically an ad, you know, focusing on the fact that Jon Huntsman is this guy that hasn't been getting a lot of attention and playing him up as the Republican that people are looking for.

And what, I think, was not known about this group was that some of the money that is going toward these ads actually came from Jon Huntsman's father. And that raises a lot of questions, not least is there's campaign finance laws that sort of limit, you know, how much a presidential campaign can coordinate with an outside group in running ads like this.

But there's also the question that Huntsman early on said that, you know, he would not rely on his own money and would not rely on outside money to boost his own campaign. And so, it sort of, you know, brings back those words to haunt him. You know, is he going to rely primarily on outside money in hopes of saving his own campaign?

COSTELLO: But it's his dad. I'm sure there will be many more questions about that to come. Holly Bailey from Yahoo! News, thanks for joining us this morning. Be sure to tune in to CNN next Tuesday night at eight o'clock eastern. CNN's Wolf Blitzer set to host the GOP candidates in Washington for a fresh new debate. One of the main topics, national security.

It's 41 minutes past the hour. Let's get a check of what's coming up at the top of the hour on "American Morning." Christine Romans joins me now. Good morning again.

CHRISTINE ROMANS, CNN ANCHOR: Good morning again, Carol. Coming up in about 20 minutes now on "American Morning," the silence that allowed a scandal to grow. We're going to speak to clinical psychologist, Dr. Jeff, Jeff Gardere (ph), about why people fail to act in terrible situations like the one at Penn State University.

Wall Street protesters saying they are too big to jail. A spokesman for the occupy movement will join us with a message for Mayor Michael Bloomberg.

And did you know that China is building the equivalent of two Chicagos every year? An economic expert with a wake-up call for the U.S., he says, America better get out of neutral or we're in big trouble. Another says we're at war with China economically, and they're the only ones fighting the war. We don't even know what to do.

Those stories and much more coming up in about 20 minutes. A.M. WAKE-UP CALL back right after a quick break.

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COSTELLO: It is 45 minutes past the hour. This is your A.M. WAKE-UP CALL. Here's what's all new this morning.

The Penn State assistant coach who witnessed an alleged sexual assault by former Penn State coach, Jerry Sandusky, speaking out for the first time. An e-mail obtained by the "morning Call Newspaper," Mike McQueary says he handled the situation the right way, speaking with police and a university official.

Forget snakes on a plane. A couple from North Carolina is suing AirTran after seeing cockroaches, yes, cockroaches, crawl out of the air vents and overhead bins during a flight in September. Among other things, the couple accuses AirTran of negligence and recklessness. AirTran denies most of the allegations.

In money news this morning, chase is scrapping three bank fees that had been testing in various parts of the country. Among the charges being pulled, a $10 and a $15 monthly checking account fee and a $3 fee to use your debit card.

And in sports, NBA players have filed two antitrust lawsuits against the league's owners. They say it's an effort to prove the current lockout is illegal. Monday, the players rejected the league's latest collective bargaining offer. So far, games have been canceled through December 15th, and there are concerns the entire season could be a washout.

Let's get a check of the weather now. Meteorologist, Jacqui Jeras, is in Atlanta. Slap us with those travel delays. I know you have some.

JERAS: Speaking of washouts.

(LAUGHTER)

JERAS: We've got quite a few of those, especially across the east coast today, Carol. Yes, it's going to be an ugly day for travelers and not just as is it ugly, but we also have the threat of severe weather. Yes, we've got tornado watches. That's those red boxes right there from New Orleans up through Hattiesburg into Birmingham, Alabama. Isolated tornadoes are going to be possible as this front pushes on off to the east.

Now, if it's not raining where you are, it probably looks like this up and down the east coast. That's not a pretty picture for you either. Low clouds like that means trouble at the airports. So, that Atlanta area looking for lots of delays today. Major delays expected. New York metros, D.C. metros, Philadelphia and Atlanta all because of those low clouds along with the threat of showers and thunderstorms.

Delays probably staying under an hour, though, for you in Memphis and Nashville, Boston and Charlotte. Raleigh will also probably have some trouble. Here's the big spread area for today. It stretches from the Delmarva down into the Deep South, and that's where we're expecting to see damaging winds. We'll probably be more widespread than anything else.

And the threat will increase as we head throughout the day today. So, it's really the coast of the country, the east coast getting wet and the Pacific Northwest, Carol, has a big storm, 65-mile-per-hour gusts on the coast along with one to two feet of snow in the cascades. Yikes!

COSTELLO: I feel so fortunate. You know, I wore a sweater to work this morning in November?

JERAS: Yes.

COSTELLO: It's that warm here.

JERAS: Yes. It's like 20 degrees above normal for a lot of people in the east. One last one, though.

COSTELLO: I know. That's what you've been telling me. I'm prepared. I am. I'm mentally prepared now.

JERAS: Right.

COSTELLO: Jacqui Jeras, thank you so much.

JERAS: Sure. COSTELLO: President Obama making his first visit to Australia as commander in chief. He arrived there earlier this morning and during a joint news conference with that country's prime minister, the president announced the United States will beef up its military presence there.

In the meantime, back at home, Republicans are stepping up their attacks on President Obama's foreign policy record. Here's CNN's Dan Lothian.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT (voice-over): In the race for the White House, punching the president is par for the course. Republican hopefuls take shots at Mr. Obama in their debates.

MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: Barack Obama.

REP. MICHELE BACHMANN, (R) PRESIDENTIAL CANDIDATE: Barack Obama.

GINGRICH: It's better than Barack Obama.

LOTHIAN: But when President Obama is asked to respond, he often settles on this well-rehearsed line.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I am going to make a practice of not commenting on whatever is said in Republican debates until they've got an actual nominee.

LOTHIAN: While President Obama is less vulnerable on foreign policy than on his biggest domestic challenge, job creation, the Republican candidates have tried to expose weaknesses at the way the White House deals with China on its currency and in intellectual property.

ROMNEY: But if you just continue to sit back and let them run over us, the policies of Barack Obama in China have allowed China to continue to expand their entry into our computer systems, their entry in stealing our intellectual property.

LOTHIAN: But perhaps the sharpest attacks against the president were over his handling of Iran and its nuclear ambitions. Mitt Romney called it Mr. Obama's greatest foreign policy failing. Newt Gingrich was equally blunt.

GINGRICH: You know, there are number of ways to be smart about Iran and relatively few ways to be dumb, and the administration skipped all the ways to be smart.

LOTHIAN: The president is pushing China and Russia to back tougher sanctions on Iran. And while Republican hopefuls are talking about military action, the president and his top aides insist all options are on the table. For voters, these sharp contrasts help define their choices, but as the president and former candidate has learned, it's easier to criticize than execute. ED ESPINOZA, DEMOCRATIC CONSULTANT: It's theory versus reality. When you're governing, the things that you talk about, you have to actually do. And there's accountability there. And whether or not you're able to push that program through or if you can push it through but see it until the end, they're very difficult things. On the campaign trail, it's all conceptual.

LOTHIAN (on-camera): From here, President Obama heads to Australia where he'll be highlighting the security strategic relationship between the two countries. He's also expected to announce a new U.S. military arrangement with that partner.

Dan Lothian, CNN, Honolulu.

(END VIDEOTAPE)

COSTELLO: Thanks, Dan.

It's 51 minutes past the hour. Here's what we're working on for the next hour of "American Morning." The GOP's familiar fresh face. We sit down with Newt Gingrich who now has a shot at the GOP nomination. That's all new at 6:00 a.m. eastern.

When we come back, pop superstar, Miley Cyrus, using Twitter to fight back against critics who say she's fat. We'll be back.

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COSTELLO: Six minutes until the top of the hour. Time to get you caught up on what's happening in the world of entertainment. First up, actress, Miley Cyrus is firing back at critics who say she has packed on the pounds. Dave Levine, the executive producer of HLN's "Showbiz Tonight" joins me by phone. Good morning, Dave.

DAVE LEVINE, EXECUTIVE PRODUCER, HLN'S "SHOWBIZ TONIGHT (on the phone): Hey, Carol, good morning.

COSTELLO: Good morning.

LEVINE: Calling Miley Cyrus fat is absolutely ridiculous. You know, she's an 18-year-old girl, but that's what's been happening. There have been a lot of tweets of people making fun of her saying that she gained a little bit of weight. There's actually this one cruel video on YouTube that has a title "Miley Cyrus is 213 pounds." Well, Miley is fighting back big time.

What she just did is post a picture on a Twitter account of an emaciated woman. And I'd like to take a look at what she wrote on Twitter. She wrote, "By calling girls like me fat, this is what you're doing to other people. I love myself and if you could say the same."

Then, Miley also wrote, "I don't want to be shaped like a girl I love being shaped like a woman. And trust me, ladies, your man won't mind, either." So, I say good for her, Carol. By the way, she also put up a snapshot of Marilyn Monroe with a caption, "Proof that you can be adored by thousands of men even when your thighs touch." Good for her, right, Carol?

COSTELLO: Good for her, but usually, when these things happen, the actress eventually loses weight and becomes super skinny.

LEVINE: Well, then, there is that reverse backlash. And people say they're getting too skinny and that they're setting a bad example. So, you just can't win. By the way, her fellow pop star, Demi Lovato, tweeted back, remember Demi was in treatment reportedly for eating disorder. She wrote, "I will destroy anyone that ever calls you the "F" word. You have the sexiest, curvy body. I love it. Work those curves."

So, well, Demi and Miley teaming up, I wouldn't want them going after me, and I tell everybody else, you'd better back off.

COSTELLO: Oh, good for them. And they're right about Marilyn Monroe. She's beautiful and sexy. And she was a normal weight. Thanks so much. Dave Levine reporting live for us this morning.

Remember, you can catch "Showbiz Tonight" every night at 11:00 Eastern on HLN. Host, A.J. Hammer will bring you all the latest top entertainment stories.

That's it for this Wednesday edition of A.M. WAKE-UP CALL. "AMERICAN MORNING" continues right after a short break. You have a great day.

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