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IPO Makes Elon Musk the World's First Trillionaire; Trump Administration Outlines Prospective Agreement with Iran; Model Scout Defends Sending Women to Jeffrey Epstein; Storm Threat Moves East After Deadly Tornadoes Hit Central U.S. Aired 2:30-3p ET

Aired June 12, 2026 - 14:30   ET

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

[14:30:00]

JACOB WARD, TECHNOLOGY JOURNALIST AND THE RIP CURRENT PODCAST: ... to be on top of that industry in the same way that he's been on top of these other ones. So that's the first question, which guy is this? Is this the old SpaceX and Tesla maker? Or is this a new guy who's obsessed with his legacy?

And then the other thing that people are betting on when it comes to Elon Musk is the literal control he has over these companies. He is not giving you a voice if you put money into his company.

He doesn't want to hear from you about it. He has 82 percent control over this company. His shares give him this very exclusive control over the thing.

And his incentive structure based on the S-1 lists these targets, these science fiction targets that include putting a million people on Mars to live there. He gets this extra payout if he pulls that out. It talks about data centers in space.

You know, this is a guy who is not taking any input from anybody else. And there's really no governance here in the way that we think about it. There's no investor revolt possible.

No shareholders are going to come together and say, we think you should run this company differently. It is entirely Elon Musk's show. And so whether or not he's the old version or the new version, he's totally in charge.

And that's what everybody's betting on, Boris.

BORIS SANCHEZ, CNN HOST: We shall see what comes of SpaceX and Elon. Jacob Ward, thank you so much for that.

Up next, the latest on U.S. talks with Iran. The two sides said to be finalizing the next steps.

[14:35:00]

(COMMERCIAL BREAK)

SANCHEZ: We're continuing to follow the fast moving developments about a prospective agreement in the war with Iran. We're now learning new details about the framework.

A senior U.S. official says it includes the reopening of the Strait of Hormuz. It also calls for the destruction of Iran's enriched nuclear material and a commitment from Tehran to never procure or develop a nuclear weapon. If Tehran follows these guidelines, it would be relieved of some economic pressures.

Now, if this agreement is signed, it would trigger a 60 day period for what is being described as technical negotiations specifically on those nuclear components. It's unclear if Iran's new Supreme Leader has formally signed off on all of this. We should note.

Let's discuss with retired Army Brigadier General Mark Kimmitt. General, thanks so much for being with us as always.

Sure.

SANCHEZ: How do you read these details that are coming out now? Does it make you confident that this will be finalized?

BRIGADIER GENERAL MARK KIMMITT, U.S. ARMY (RET.): Look, I think we need to understand what we have here is a down payment. We haven't bought the house yet. This is a Memorandum of Understanding.

It's not a final agreement. The technical discussions are going to be the toughest part of all this. There are a lot of outstanding issues that this broad MOU framework doesn't address.

SANCHEZ: So a senior U.S. official says that Iran has agreed to allow its nuclear material to be destroyed and removed by the U.S. I mean, that seems like an undertaking, especially if there are going to be American forces, American teams on the ground to remove that buried enriched uranium.

KIMMITT: No, that's exactly right. And it's much better to do it this way than to send in the 82nd Airborne to do it. The major issue I have with all of this is inspection and verification.

The Iranians have been notorious about slipping on their inspection requirements. That's why we had such leakage last time. So I just hope we put in a very rigid, almost to the point of being intrusive verification program.

SANCHEZ: Overnight, the U.S. shot down two Iranian attack drones targeting vessels in the Strait of Hormuz. A U.S. official says that when the agreement is signed, the Strait will reopen. The U.S. blockade in the Gulf of Oman of Iranian ports will be lifted. Do you have concerns that that situation regarding traffic through that area is not simply going to be resolved with this Memorandum of Understanding?

KIMMITT: Well, it certainly won't be with the Memorandum of Understanding. But there is still an outstanding question, particularly in Iran's mind, on what a post-conflict arrangement in the Strait of Hormuz is going to be looking like. They, of course, want to turn this into a toll booth. Well, OK, well, let's put a toll booth at the Strait of Gibraltar. Let's put a toll booth at the Strait of Malacca. Let's put a toll booth at the English Channel.

There's not one country or institution in the world that agrees with this plan coming out of Iran.

SANCHEZ: One senior U.S. official also has said that Iran has agreed to stop funding its terror groups. That is relatively new, right? Because that was an ambition of the United States early on in this conflict, saying that that was one of the things that the JCPOA didn't address that American officials wished that it had.

How likely is that to be enforceable?

KIMMITT: Well, two things. That has been the policy of the United States in all negotiations. No nukes, no missiles beyond a certain range, no proxy groups.

The Iranians have been successful at pushing those issues off in every round of negotiation. I don't think they are going to allow what they call their resistance groups to be part of any agreement, nor will they allow their missiles. They are, depending on the U.S., to stay focused on what the U.S. thinks is the most important, which is the nuclear program.

SANCHEZ: One of the key proxy groups that Iran has maintained support for and has effectively put at the crux of these negotiations in recent weeks has been Hezbollah. And I wonder if you think that the conflict between Israel and Hezbollah and Lebanon could upend this agreement because it's stipulated that there would be some resolution to that in order for this to move forward, right?

[14:40:00]

KIMMITT: Yes, I think what's going to happen is the Iranians recognize that the Strait of Hormuz was such an important issue to the Americans and the international community that they will try to make sure that the Lebanon conflict and the survival of Hezbollah is coupled to this agreement as well.

SANCHEZ: And whether Netanyahu decides to follow along in the United States to the letter of this agreement, it remains somewhat of an open question. If Israel decides that it won't, what does that mean generally for the agreement?

KIMMITT: Well, look, I think it's important to recognize that the U.S. and Israel have overlapping interests, but they don't have identical interests. Netanyahu is concerned about his own national security, in some ways his own political future. I think Netanyahu is going to do what Netanyahu wants to do.

SANCHEZ: Brigadier General Mark Himmitt, thank you so much. Appreciate the analysis.

KIMMITT: Sure. SANCHEZ: Of course. Still to come, he sent young women to meet Jeffrey Epstein, even after he was a known sexual offender. Now he's trying to explain why. That interview in just minutes.

(COMMERCIAL BREAK)

[14:45:00]

BRIANNA KEILAR, CNN HOST: A group of Jeffrey Epstein survivors is now publicly opposing President Trump's pick for Attorney General. The president has tapped his former personal attorney and acting AG Todd Blanche to permanently take over the job. But survivors say a new report from the New York Times detailing Blanche's role in secret White House meetings about how to contain political fallout from the Epstein files raises serious concerns about his ability to lead the Justice Department.

All of this as a new CNN investigation shows Epstein's activities allegedly went far beyond the U.S. or his infamous private island. CNN's Katie Polglase spoke to a modeling agent in Paris about his ties to the late sex offender.

(BEGIN VIDEOTAPE)

KATIE POLGLASE, CNN INVESTIGATIVE CORRESPONDENT (voice-over): Paris. For years, young models were recruited here for Jeffrey Epstein. Digging through the Epstein files, CNN found Epstein received dozens of photos of young models sent by model scouts and agents. We identified at least six individuals not just sending him images of models, but discussing arrangements for him to meet them, even after his 2008 conviction for soliciting prostitution, including with a minor.

Now, one of these model scouts has agreed to meet with us here in Paris.

POLGLASE: OK, we're here.

POLGLASE (voice-over): Daniel Siad dealt with Epstein for more than a decade, arranging to send him models.

POLGLASE: You didn't think in that time that sending young women, young models to the U.S. to meet Epstein, after he had a conviction for child sex offenses, that there may be any risk in that at all?

DANIEL SIAD, MODEL SCOUT: My work with him has been strictly professional. I never doubt that, because I never heard anything from anyone I introduced to him who came back to me that they had a bad situation with him.

POLGLASE (voice-over): The files show Epstein paid tens of thousands of dollars to Siad. In reviewing their correspondence, we found messages like, "Cute French girl in Marrakech." Siad wrote, "She said that she would be happy to meet you."

In another, he says a woman is very polite and has potential as a model or assistant. Siad then sends a photo. "Too old," Epstein replied.

POLGLASE: So Epstein wasn't a model agent. Why was he paying you?

SIAD: No, he was because they opened an agency, MC Squared

POLGLASE: He was not the model agent leading that model agency.

SIAD: He was a finance C4, but was acting as a casting director for Victoria's Secret.

POLGLASE: You believe Epstein was a casting director?

SIAD: That's how he had been introduced and how he introduced myself also.

POLGLASE (voice-over): In fact, we found no evidence Epstein had an official recruiting role at either company, MC Squared or Victoria's Secret.

POLGLASE: You sent an email in 2018 that said you were looking for a good-looking young assistant. If you're looking for models --

SIAD: Yes.

POLGLASE: -- why are you then looking for an assistant for Jeffrey Epstein?

SIAD: He asked me for an assistant. Maybe it was not on the phone, but when I met him in --

POLGLASE: But was that your job?

SIAD: Sorry? No, but because I trust in him, I believe this guy is a professional person.

POLGLASE (voice-over): Siad himself is also facing accusations of abuse. Ebba Karlsson has accused him of rape when she was a model in France in 1990. Siad denies her allegation.

SIAD: To be honest with you, I don't remember at all this person. And plus, I have never abused any model in my life.

POLGLASE: She remembers you.

SIAD: Listen, I would be very happy to confront her in the court. I don't remember.

POLGLASE: Do you have any regret about meeting Jeffrey Epstein?

SIAD: Yes, yes. It's like a nightmare. I can't believe that this person had another -- I am --

POLGLASE: You keep saying that, but I keep repeating that this other side of him --

SIAD: Yes. POLGLASE: -- was public knowledge.

SIAD: I am not a person who is like a press, looking the internet, this kind of really --

POLGLASE: But you were aware?

SIAD: Sorry?

POLGLASE: You were aware?

SIAD: Of what

POLGLASE: His conviction for child sex offenses.

SIAD: No, you're repeating the same question more than 10 times again.

POLGLASE: You're telling me that you don't read the press, that you --

SIAD: No listen, I didn't know a lot about him until when he comes to Paris, and I told you again, he said he paid this to the government. So, for me, he's freeman, he's clean. He was such a powerful person, and how can I not trust him?

POLGLASE (voice-over): After Epstein's 2008 conviction, Siad wasn't the only one who continued giving Epstein access to the modelling industry. Faith Kates, the co-founder of model agency Next Management, is another.

In 2010, two years after his conviction, Epstein asked Kates for a great girl to take to an event. Kates replied, "Let me think who is around, XOXO."

Kates reportedly left Next Management last year, and her spokesperson told CNN she was grossly misled by Epstein. Then there is modelling scout Ramsey Elkholy.

[14:50:00]

In 2009, he describes to Epstein a model as "a gift that I had been planning on giving you." And then there is Jean-Luc Brunel, who ran multiple model agencies and was accused in civil court in 2014 of bringing girls to the U.S. to farm them out to his friends, especially Epstein.

Brunel was himself charged in France with underage sex crimes but died in prison in 2022 while awaiting trial. He denied all charges.

There is now an ongoing investigation in France into Epstein and his connections there. Siad is under investigation, according to the Paris prosecutor's office, but he says police have not spoken to him.

For victims of Epstein around the world, they await justice from the courts.

Katie Polglase, CNN, Paris. (END VIDEOTAPE)

KEILAR: Thanks to Katie Polglase for that. MC Squared and Ramsey Elkholy did not respond to CNN's request for comment. Elkholy told the Washington Post, quote, "Of the models that I've introduced to him, they've never come back to me and said they had any problems."

Boris.

SANCHEZ: Now to some of the other headlines we're watching this hour. A family of four is safe after getting stuck 120 feet in the air at Six Flags St. Louis. They were left hanging in their swings after the ride malfunctioned yesterday.

First responders spent about two and a half hours working to get them down amid strong winds. Six Flags says it's unclear why the ride stopped working, but thankfully everyone is OK.

Also, these are live pictures of the Kennedy Center, where workers have just installed scaffolding underneath the building's exterior signage. A U.S. district judge said earlier today that the Kennedy Center must remove President Trump's name even as the center's board of trustees tries to appeal this ruling.

Last month, the judge said the Kennedy Center broke the law when it added Trump's name and gave them two weeks to remove it. As you can see, the name currently remains intact, but we'll continue to monitor any new developments and what happens with that scaffolding.

Oh, the sweet, sweet taste of honey straight from a sewer. Yes, a South Philadelphia neighborhood was all abuzz over a colony of bees found living underground. It took a beekeeper about seven weeks to coax the hive out of the sewer, but this week the bees were moved to a better location.

Residents in the area say that two good things came out of the situation. The bees brought the block closer together, and after they were relocated, the neighbors were able to sample the sewer honey they left behind.

Well, days of severe storms and tornadoes leave widespread destruction in multiple states. After the break, the CNN weather team is tracking where new storm threats are popping up. Your forecast next.

[14:55:00]

(COMMERCIAL BREAK)

KEILAR: Deadly storms sweep through the central part of the U.S. yesterday, leaving a trail of destruction and devastation. There were more than 30 tornadoes that were reported across Illinois and Indiana. This man was actually found pinned underneath the debris of his own home, and a photojournalist helped remove some of that weight before police arrived to pull him out.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: Oh, my God, are you OK?

UNIDENTIFIED MALE: I think I got a broken leg.

UNIDENTIFIED MALE: You've got a broken leg.

UNIDENTIFIED MALE: I think so.

UNIDENTIFIED MALE: OK, my Got.

UNIDENTIFIED MALE: I got her out.

UNIDENTIFIED MALE: OK.

UNIDENTIFIED MALE: But I can't get out.

UNIDENTIFIED MALE: Oh, my God.

UNIDENTIFIED FEMALE: I tried moving all this stuff. I can't get him out.

UNIDENTIFIED MALE: All right, hold on, let me help. Hold on, hold on.

(END VIDEO CLIP)

KEILAR: Thunderstorms with 70 to 90 mile per hour winds knocked down trees in Iowa that killed one resident.

CNN meteorologist Allison Chinchar is tracking all of this for us. Allison, this storm is now headed east. It's turning into an oppressive heat wave.

ALLISON CHINCHAR, CNN METEOROLOGIST: It is, and we've got more severe weather in the forecast too, and you take a look at storms like this. This was a large wedge tornado that happened in Livingston County, Illinois. It's the same system that produced this that's going to continue to give us the potential for more severe storms.

And this wasn't the only tornado that we've had over the last few days. Numerous states have had tornado reports. In fact, we've been looking at more than 450 total storm reports in just the last 24 hours.

Again, you can see where all of those dots are. So you can see it's been a variety of varied places. You have some that have occurred in the northeast, the mid-Atlantic, the Midwest, and even back down through Oklahoma and into Texas.

Now, the activity right now is still right there, kind of along that front. You can see a couple of warnings here across West Virginia, even a few down into South Carolina, as well as Tennessee. The main concern going forward is really going to be the stretch from Burlington, North Carolina -- or Burlington, Vermont down to North Carolina, excuse me.

You've got the potential for damaging winds and very large hail that will be the main threats as a lot of that line continues to progress eastward. You're also going to have some more storms firing up later this afternoon as that heating of the day really helps to kind churn up that atmosphere. It's going to continue into Saturday and into Sunday as well.

So some of these areas are going to get multiple days here of the potential for some severe weather. So do keep that in mind too.

And we talked about it. The heat is really what's going to be fueling a lot of these showers and thunderstorms. You have those heat advisories out pretty much for a decent chunk of the eastern seaboard, as well as portions of the southeast.

And we're not just talking, say, five or six degrees above average. In several of these cases, it's actually record-breaking heat. All of those dots you see on the map represent a potential record high temperature for these locations.

You look at New York, Philadelphia, Washington, D.C., even Raleigh, all getting within just a couple of degrees there of what their record for today is expected to be. So you're talking 10, 15, even 20 degrees in some locations of the northeast above average for where they usually would be this time of year.

And again, it's not just the temperature itself. It's that humidity that kind of gets mixed in. So that feels-like temperature, or the heat index, is also very high. It's going to feel like it is 105 in Washington, D.C. 106 is the feels-like temperature for Raleigh. 96 in Atlanta. 103 in Jackson. Again, a lot of these areas, again, it's that combination of that temperature ...

END