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Travel Ban Extended In Vermont Capital Due To Flooding; Mayor Jack McCollough (I-Montpelier, VT) Discusses Flooding; Northwestern Fires Football Coach After Hazing Investigation; Bank Of America Ordered To Pay $250 Million For Junk Fees, Fake Accounts And Withheld Rewards; Bud Light Fallout Grows After Transgender Partnership. Aired 2:30-3p ET
Aired July 11, 2023 - 14:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[14:31:34]
BRIANNA KEILAR, CNN HOST: Officials in Vermont are warning that although the rain has stopped falling, the catastrophic flooding is creating very dangerous conditions across the state.
The capital, Montpelier, is under a strict travel restriction and that is because of the flooding throughout the downtown area that has completely submerged city streets and sidewalks. Obviously, not safe to be there.
Three radio towers used to dispatch fire and ambulances in Vermont's Washington County have also been compromised. Vermont's Swift Water Teams have now performed more than 100 rescues throughout the state and they are still very busy.
Jack McCollough is the mayor of Montpelier, which is under water with extreme flooding right now.
Mayor, thank you for taking the time to speak with us.
We're very sorry about what your city is going through and we're looking for an update from you.
We heard a few hours ago that police said the dam there in Montpelier, the Wrightsville Dam, which we have a photo of here, was only about a foot from overflowing, which would have risked even more flooding.
Can you tell us where things stand right now with that dam?
MAYOR JACK MCCOLLOUGH (I-MONTPELIER, VT): Yes, thank you for your kind words. We appreciate the support and attention.
What I can tell you is we have been paying attention to the dam overnight, and into today. And for the last three hours, we've been right at the same level, just about a foot below the overflow status.
We take that to be a good sign because it indicates that it is not getting any worse. And in a day like today, not getting any worse is something that I'll take.
KEILAR: Totally understand that.
Can you speak more broadly about what your city is dealing with right now, what the biggest needs are, and the biggest challenges are that you're facing?
MCCOLLOUGH: Oh, sure. I was just downtown a few minutes ago. And even though we are hearing that there is some reduction in the water levels, the streets are full. They are full from curb to curb and into the buildings on both sides.
People have -- the buildings have taken on water and I think the businesses and residents in those buildings are going to be facing challenges of damage to the building and also damage to the personal property in those buildings.
I think we're likely to see people displaced who are going to need to have work done before they can return. All the businesses are going to need a lot of work before they can get up and running.
In fact, I know from previous events that where buildings, basins have been filled with water, the systems will need to be inspected and determined to be safe before the space can be energized and people can go back to working in those buildings.
(CROSSTALK)
MCCOLLOUGH: So it is going to be a lot of work.
KEILAR: We're seeing the pictures. Water up to parking meters. The beautiful historic buildings partially under water. The water is moving very quickly.
At this point in time, the last word was that there were no injuries or deaths in your state, which is pretty amazing. Is that still the case hopefully?
[14:35:06]
MCCOLLOUGH: That's what I know, too. I have not heard of any injuries or deaths, which is very good. I think most people are heeding our emergency health order to stay out of downtown and to stay where you're safe and dry.
There are a few people, sightseers in downtown. I understand the impetus to go out and see what's going on.
But as you observed, it is not just water sitting in the roads. It is a rapidly flowing river through the streets of Montpelier and it is dangerous for people to be out.
KEILAR: No doubt. Very good warnings that you are giving there. We'll keep an eye on this.
And we thank you for your time this afternoon. Mayor McCollough, thank you.
MCCOLLOUGH: Thank you very much.
KEILAR: Jim?
JIM SCIUTTO, CNN HOST: Streets becoming rivers across the state.
Another story we're following, the football program at Northwestern University has been upended after the firing of long-time head coach, Pat Fitzgerald.
The school announced his termination on Monday following a hazing investigation of the team. Allegations of forced participation in degrading sexualized acts and nudity.
CNN's Omar Jimenez is here with more.
Omar, looking at this case, he says he didn't know anything about claims of hazing and does not appear to be clear evidence he did. Can you explain the university's case for termination here?
OMAR JIMENEZ, CNN NATIONAL CORRESPONDENT: Yes, Jim. So they're basically saying that while you may not have known about it, you had the opportunity to.
And I should say that I'm a former student athlete at Northwestern. But I played basketball. This year is about football.
And some of the basics of what this case is about as far as hazing goes, 11 former or current players talked about how hazing had been ongoing within the program. But specifically, hazing that included forced participation, nudity and sexualized acts of a degrading nature.
Some student athletes believed it was fun and games. Others looked at it as posing significant harm.
And the investigation, the results of which were presented, or summarized by Northwestern, said this was widely known within the program but made the key distinction that there was no credible evidence that Head Coach Pat Fitzgerald knew about this.
That said, as part of Northwestern's statement, "The hazing we investigated was widespread and clearly not a secret within the program, providing Coach Fitzgerald with the opportunity to learn what was happening."
That's the key point there. Either way, the culture of Northwestern football, while incredible in some ways, was broken in others.
We're hearing now from Head Coach Pat Fitzgerald who has said in response, in part:
"I had no knowledge whatsoever of any form of hazing within the Northwestern football program. Last friday, Northwestern and I came to a mutual agreement regarding the appropriate resolution.
"Therefore, I was surprised when I learned that the president of our Northwestern unilaterally revoked our agreement without any prior notification and subsequently terminated my employment."
He's talking about how he was initially suspended for two weeks. Details became more public and, of course, things progressed here. I should say, he's hired legal representation to help navigate his next steps.
SCIUTTO: Probably not the last we hear about it.
Omar Jimenez, thanks so much.
Boris?
BORIS SANCHEZ, CNN HOST: Scientists say that extreme heat has pushed ocean temperatures so high that it is now threatening coral reef ecosystems in south Florida. We have details on that straight ahead.
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[14:42:58]
SCIUTTO: Welcome back to CNN NEWS CENTRAL. Here's some of the headlines we are watching this hour.
Ecosystems on the brink of extinction. Scientists putting out a new warning about the damaging effects excessive heat caused by climate change is having on coral reefs.
NOAA's Coral Reef Watch said there's greater than a 60 percent chance of coral mortality in southern Florida and the Caribbean between now and October.
Ocean temps in that region have recently risen as high as 95 degrees, well past the mid-80s necessary to maintain coral marine life. The stress caused by excessive heat can lead to coral bleaching and the eventual death of reefs.
The high ocean temperatures is not just limited to Florida. The Caribbean, of course, parts of the north Atlantic also seeing a major spike.
Also, there is still a chance for to you cash in on one of the biggest Powerball jackpots ever. They always seem to get bigger.
There was no winner in last night's drawing, meaning Wednesday's jackpot will rise to an estimated $725 million. That would make it, if you believe it, just the seventh largest jackpot in Powerball history. The odds of winning, one in 292 million, give or take. So good luck.
And a Hollywood A-lister is now accused looting a chateau in France. Court filings on behalf of Angelina Jolie's former investment company accuse the actor's ex-husband, Brad Pitt, of stripping those assets from the winery they once owned together in an attempt to control it. The company is seeking $350 million in damages.
The representative for Pitt disputes the details of that court filing. Jolie filed for divorce from Pitt back in 2016. She sold that investment company in 2021.
Boris?
SANCHEZ: Federal regulators are ordering Bank of America to pay up. They say the bank charged illegal junk fees to consumers and opened fake accounts.
[14:45:00]
The Consumer Financial Protection Bureau has ordered Bank of America to pay more than $100 million to customers, another $90 million in penalties, and on top of that, the bank has to pay an additional $60 million in fines.
CNN's Matt Egan joins us live.
Matt, what does this mean for Bank of America and its customers?
MATT EGAN, CNN REPORTER: Well, Boris, these are alarming allegations against one of America's largest banks and they are eerily similar to the Wells Fargo scandal of years ago.
Here's what regulators are alleging Bank of America did. First, that they had this double-dipping fee scheme. When customers tried to buy something, if they didn't have enough money in their account, they were slapped with a $35 fee, but not once, multiple times for the same transaction. That's a big no-no.
Regulators also say Bank of America was withholding credit card rewards. Think about bonus points and cash rewards. Withholding tens of thousands of credit card customers.
And also this is reminiscent of Wells Fargo, regulators say employees opened up fake accounts in an effort to hit sales goals that have since been disbanded.
We've reached out to Bank of America and the company told CNN that they had voluntarily reduced overdraft fees and non-positioned fund fees last year. And that caused their fee revenue to plunge by more than 90 percent.
I'm sure a lot of people are wondering, what should I do? If you are a customer of Bank of America, CFPB told CNN that customers don't need to do anything.
Bank of America is being required to refund people hit by bogus fees and they are being required to reach out to customers who may have been hurt by fake accounts.
What about customers of other banks? The CFPB is hinting there could be other action there.
In a statement, the CFPB director said, quote, "These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system."
Boris, I think the lesson here for customers of all banks is check your statements. Make sure there's no shady fees there. If there are, speak up. Not just to the bank but to regulators like the CFPB.
SANCHEZ: Yes. That's such an important piece of advice. Other banks have been in trouble for similar things in the past.
Matt Egan, thank you so much for the report.
Brianna?
KEILAR: For the second straight month, Americans said, "This Bud is not for them." Bud Light's loss of its title as the nation's top- selling beer persisting. Ahead, more on the culture wars that have spilled into the beer biz.
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[14:52:04]
KEILAR: The Bud Light boycott continues to hurt the beer brand's bottom line with sales tanking more than 28 percent during the July 4th week, while Modelo once again snagging the crown for the most-sold beer in the U.S.
Bud Light's partnership with transgender influencer, Dylan Mulvaney, sparked a culture war and now the beer giant is also facing blowback from the LGBTQ community.
CNN's Ryan Young has more on this ever-growing controversy.
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RYAN YOUNG, CNN NATIONAL CORRESPONDENT (voice-over): A culture war is brewing over Bud Light, dividing beer drinkers as much as the country is itself.
SAM MCCOLL, GENERAL MANAGER, 3 CROW BAR: Unlike anything I'd ever seen.
UNIDENTIFIED MALE: I don't give a (EXPLETIVE DELETED) if you drink Bud Light, Miller Light, Coors Light, it doesn't matter.
UNIDENTIFIED MALE: If you don't like what somebody's selling, just don't go there. Stop being butt hurt about everything that goes on in the world.
DYLAN MULVANEY, TRANSGENDER INFLUENCER: I celebrated my day 365 of womanhood.
YOUNG: The brouhaha stems from Bud Light's short-lived partnership with transgender influencer, Dylan Mulvaney.
MULVANEY: Love you.
YOUNG: The fury from the right, enough to dethrone Bud Light as the best-selling beer in America for the first time in two decades.
The controversy has taken center stage in Nashville, where two of country music's biggest stars, Garth Brooks and Kid Rock, have bars just steps away from each other on Broadway.
BILL FLETCHER, CEO, FLETCHER RIDGE & CO.: What's fascinating to me is that right here on Broadway, in Nashville, Tennessee, the culture wars have come down to two big personalities in this town.
It illustrates the way the whole country is responding to the transgender acceptance.
YOUNG: Garth Brooks says he plans to carry the beer at his yet-to-open bar.
GARTH BROOKS, MUSICIAN & BAR OWNER: I'm a bar owner now. Are we going to have the most popular beers in the thing? Yes.
But I get it. Everybody's got their opinions. But inclusiveness is always going to be me.
YOUNG: A block down Broadway, Kid Rock made his feelings known when he posted this video shooting up cases of Bud Light.
(GUNFIRE)
YOUNG: Despite the online bravado and talk of a boycott, Bud Light was available when CNN stopped in recently. It is not clear if the ban had been lifted or if there ever had been one to begin with.
Nashville marketing executive, Bill Fletcher, says the whole country seems to be engaging in the same heated conversation.
FLETCHER: With Kid Rock, you have this dark, angry, finger-pointing, shooting a gun at a Bud Light can, and Garth Brooks is -- is, hey, I love everybody and openness and acceptance.
And I think it's what you see in the country going back to African- Americans, to gay people. Well, now it's transgender.
YOUNG (on camera): Here on Broadway, where fans from all around the world come to maybe listen to some music and drink some beer, this Bud Light controversy has left a bad taste in a lot of fans' mouths.
JAMIE ODREN, NASHVILLE TOURIST: It's quite simple, people just don't want it shoved down their throat.
UNIDENTIFIED FEMALE: No Bud Light. Because it's like I have grandchildren. We don't need to put that in the young kids' heads.
[14:55:05]
YOUNG (voice-over): In Chicago, at 2Bears Tavern, a bar that caters to mostly gay patrons, they also feel strongly about not serving Bud Light anymore.
But for the opposite reason. They believe the brand left Dylan Mulvaney alone on an island to face a mountain of hate.
MARK ROBERTSON, OWNER, 2BEARS TAVERN GROUP: To be a true ally means that you don't push us behind the scenes and say, well, I'm going to give you some money but I really don't want you to be front and center or public.
YOUNG: But in some Nashville bars, the backlash against Bud Light was hardly felt.
MCCOLL: We had one guy who said, "I refuse to drink that anymore." One guy. And everybody else in the bar kind of rolled their eyes at him.
YOUNG: And there were plenty of bar hoppers on Broadway who were simply ready to move on.
UNIDENTIFIED MALE: Let's move on and let -- hell, let's party. We're in Nashville, damn it!
(LAUGHTER)
YOUNG (on camera): Are you not bothered at all by this Bud Like controversy? You're like, ah.
UNIDENTIFIED FEMALE: No, not at all. I don't give a (EXPLETIVE DELETED) what they do.
(END VIDEOTAPE)
YOUNG: Brianna, you can feel the strong feelings from the people we talked to in the crowd.
You know, a lot of times we go out and do stories and sometimes people react in a certain way when you ask them questions. People were lining up to give us their feelings about Bud Light.
You see their sales have dropped off some 28.5 percent in the last few months. It's been interesting to watch how this has played out. This conversation is far from over.
KEILAR: Really interesting report there.
Ryan Young, thank you so much.
Boris?
SANCHEZ: Some fantastic sound bytes there.
As Sweden wins NATO support for membership, Ukraine's president wants the same for his country but the alliance's chief says that key conditions have to be met first. We'll take you live to the summit in Lithuania straight ahead.
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