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Bailouts Leading to Profits, Not Loans; Katrina Victims Suing Army Corps of Engineers; Some Veterans Testing Positive for Contagious Diseases after Tests with Unsterile Equipment; Somali Pirates Captured but Released; President Obama Challenges Cabinet to Make More Budget Cuts; Maersk Alabama Crew Member Shares Harrowing Ordeal; Iranian President Makes Controversial Remarks about Israel at U.N. Racism Conference
Aired April 20, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, HOST: Tony, thanks so much.
We're pushing forward after the storm. I mean, long after the storm. Katrina victims take the Army Corps of Engineers to federal court in New Orleans. Who's to blame for damage on the hurricane highway?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Right now, they want to hold our captain ransom. We're trying to get him back.
(END VIDEO CLIP)
PHILLIPS: Well, you heard it here first: the high-seas ambush of the Maersk Alabama off the Horn of Africa. Today, meet the voice on the phone, Second Matt Ken Quinn, live right here in the CNN NEWSROOM.
Hello, everyone. I'm Kyra Phillips, live at CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.
Ninety days to a leaner federal government. That's one of two big stories that we're following out of Washington this hour. President Obama challenges his cabinet to come up with $100 million in cuts, and fast.
These are challenging times for the CIA, as well, in the wake of the release of those terror memos. The president plans a morale- boosting visit to CIA headquarters. Next hour, we'll take that live when that happens.
Well, he's been to several foreign countries, signed major legislation, even picked out a puppy. But 91 days into his term, Mr. Obama is just now holding his first cabinet meeting. CNN's Elaine Quijano with some more on those budget cuts.
Let's go ahead and start with veteran affairs, if -- that department is having a hard enough time trying to push forward on good healthcare for vets.
ELAINE QUIJANO, CNN CORRESPONDENT: Yes, we're talking about $17.8 million, Kyra, for the Department of Veteran -- Veterans Affairs.
UNIDENTIFIED MALE: (UNINTELLIGIBLE)
QUIJANO: My apologizes. I've got a colleague about a shoulder length away from me here. But I'll try to speak loudly.
Basically, what the Obama administration says is that it can cut $17.8 million by canceling or delaying conferences that the V.A. Department actually has and by having video conferences instead, Kyra. Interesting.
Also, the Department of Homeland Security, we should tell you, they say they can save $52 million over five years simply by buying bulk office supplies.
Now, what is the president calling for in this cabinet-level meeting? This cabinet meeting, I should say. A hundred million dollars for these cabinet heads to trim over the next 90 days. And then, after that 90-day period, they're going to have to report back on exactly how they were able to meet that. What savings -- what cutbacks they actually made to reach that.
But, you know, critics say, look, that's fine, but $100 million, they argue, is just a drop in the bucket. They say especially it's a drop in the bucket when you consider the fact that President Obama's 2010 budget is $3.5 trillion, Kyra. In fact, Republican Senator Mitch McConnell said today in a statement that, even as the president is looking for millions in savings, that his budget calls for adding trillions to the debt over time.
And we're actually waiting at any moment, Kyra. You might see some reporters coming through that door behind me. I don't know if you can see it. But we're awaiting those pool reporters to come out and tell us what President Obama said in that cabinet meeting.
PHILLIPS: All right. Well, let us know when that happens.
QUIJANO: Sure.
PHILLIPS: We'll take more information. Thanks, Elaine, so much.
Pushing forward on the president's agenda: a trip to CIA headquarters comes amid the fallout from those torture revelations post-9/11 and a judgment call not to prosecute anybody involved. It also comes amid big opportunities for job seekers with foreign language skills.
"USA Today" got a look at records showing just 13 percent of CIA employees speak languages other than English. And, believe it or not, that's a 70 percent increase from 2004. The agency's recruiting in a big way and offering hiring bonuses as high as $35,000.
Well, the president's due to meet the CIA brass at 2:35 Eastern Time, about a half -- or an hour and a half from now. That will be private. Then around 3:30, he's scheduled to speak to CIA staffers in public. We're going to bring that to you live right here in the CNN NEWSROOM.
Let's go ahead and check the big board numbers here. The Dow Industrials down 228 points. We're following the markets, of course, all throughout the afternoon.
And 1,600 General Motors workers getting news this week that no one wants to get. The company is cutting them loose in the next few days. We're talking about salaried workers here, most of them in engineering and administration. It's part of GM's bigger plan to cut 3,400 salaried jobs by May 1. It's under a June 1 deadline to actually cut costs in order to get more government aid.
And how about a little better news? Bank of America reporting a $4.2 billion profit in the first three months of the year. That's about seven times the amount that analysts expected and light-years from last quarter, when B of A lost nearly $1.8 billion. The company's stock went down, though, when the bank warned of growing problems with consumer loans.
Well, B of A, Citigroup, JPMorgan, Wells Fargo, all reported bumper profits in the wake of their taxpayer bailouts. Clearly, TARP as it's known has paid off for them. But what about us? That's the angle that CNN's Allan Chernoff has done some digging on. He joins me now with the findings.
Allan, profits are great. But what about the loans? Wasn't that supposed to be the No. 1 priority?
ALLAN CHERNOFF, CNN CORRESPONDENT: Exactly. And the bankers are making loans, but not a dramatic increase. As a matter of fact, according to the treasury, during February -- these are the latest number -- the median percentage of loans down by 2 percent, according to the data of the top 21 banks in the country.
"The Wall Street Journal" looked at those numbers and said, "Well, let's compare it back to October when TARP started. Let's look at the raw numbers." According to "The Wall Street Journal," lending is actually down by 23 percent during that period.
So Kyra, clearly the banks are being very cautious. The economy's lousy. They don't want to suffer more loan losses. They're not making that many more new loans -- Kyra.
PHILLIPS: So Alan, are banks healthier now?
CHERNOFF: The banks are healthier. The main point of TARP was to stabilize the financial system. So you wouldn't be having these big profits if the financial system were still collapsing. We've got the stabilization in place. The banks are putting up some good numbers right now.
That doesn't mean that it's clear sailing from here on in, because the economy is still in trouble. We're going to have a lot of loan losses, not only from mortgages, credit-card debt, commercial real estate, industrial loans. You can go on and on. The banks still need to brace themselves for lots of -- lots of losses. And they are doing that in their accounting. They're preparing for big losses down the road.
PHILLIPS: Allan, thank you.
Mother Nature battering parts of the southeast. A look at where the dangerous weather has been and where it's headed.
(COMMERCIAL BREAK)
PHILLIPS: Last time I talked to Ken Quinn, pirates had taken his captain and the USS Bainbridge was about three hours away. So much has happened since we last talked. Ken joins us for another exclusive interview in just a few minutes.
(COMMERCIAL BREAK)
PHILLIPS: Thunderstorms wreaking havoc across different parts of the nation today. Check out the damage there in Cherokee County, Georgia. A child was injured after a tree fell on the roof of a house overnight.
Two people were killed in northern Alabama in two separate incidents. A woman died when a suspected tornado destroyed a mobile home. Her husband was injured. And the other death occurred when a tree crushed a man's mobile home.
There were also reports of damage across the Mississippi.
And parts of Colorado hammered this weekend by a spring snowstorm. This iReport sent in by Ryan Mitchell of Evergreen, Colorado. More than four feet of snow fell west of Denver, shutting down an 80-mile section of Interstate 70 for a time. Some 500 travelers spent the weekend in Red Cross shelters. Utility crews still trying to restore electricity to residents who lost power.
Boy. Meteorologist Chad Myers keeping very busy today on all.
CHAD MYERS, CNN METEOROLOGIST: You ever been stuck on I-70 right there?
PHILLIPS: Not fun. And I think Sean Callebs is with us. Yes.
MYERS: Yes.
PHILLIPS: We've all been stuck there on I-70. We've all worked in all these markets, guys, right?
MYERS: On the way to the Eisenhower Tunnel, it's not good either way.
PHILLIPS: Not a happy scene.
MYERS: Exactly. And I have pictures on the south side how heavy the rain was. Take a look at this sink hole, Kingwood, Texas. Yes, that's not -- that's not good. I don't know of a car that's going to go through there very well. And this is what's been happening. We've had rainfall accumulations over the weekend in Texas that have approached 15 inches in one spot. And then it all had to, obviously, run off. Well, that storm has moved a little bit further to the east and then caused the severe weather yesterday across the Deep South. Now the potential for severe weather across parts of eastern North Carolina.
Back to the maps we go. We have some rain showers across parts of New York and Pennsylvania, back into Washington, D.C., and even as far south as Atlanta, Georgia. Here we go.
The rain showers getting a little bit stronger right now, right along the low country here, North Carolina. Here's Elizabeth City, back toward Duck, and then all the way down across the sounds. And you're going to see that weather kind of redevelop later on today, too, with the potential for some severe weather.
Not seeing any in Florida. Just rain showers. Your garden variety, get the garden wet kind of "here comes the rain, there it goes" kind of day. A very hot day in the west. Yesterday broke records all over Santa Ana. I know you hear of the Santa Ana winds. But there's really a town named that, a city. And 101 degrees yesterday. And should make a run a lot like it today. Ninety-eight Phoenix and Scottsdale, 95 L.A., 92 in Vegas.
The cool air -- it's relative -- cools in the east, warms in the west. That's going to switch again next week when it gets cool back out to the west again. And then the warm weather slides here to the east part of the United States.
So that flip flop, that typical flip flop here that we get every summer and every fall, and most spring really, every time the spring comes around, the warm air says, "Oh, we're almost here. We're almost summer." And then the winter says, "Not so fast." And that's how you get all that snow in Colorado, as well. Some of the heaviest snows in Colorado happen in March and April every year.
PHILLIPS: Right.
MYERS: Because there's so much humidity in the air. That can mean so much snow.
PHILLIPS: That's why those dedicated skiers never want to leave. Thanks, Chad.
MYERS: Sure.
PHILLIPS: Well, the plaintiffs want a few hundred thousand each. But their suit against the Army Corps of Engineers could cost the government billions of dollars.
If a judge finds one of the Corps' projects contributed to Hurricane Katrina flooding, well, that's what Sean Callebs, who is based in New Orleans, what he's been following for -- ever since.
I mean, let's -- should we talk about that areas, first, Sean, where this is taking place?
SEAN CALLEBS, CNN CORRESPONDENT: Yes. Let's...
PHILLIPS: Or what we're focused on exactly?
CALLEBS: Let's first -- we'll talk about these areas. Because everybody knows that much of the flooding -- this is the area of the 17th Street Canal up here north of the city and also the industrial canal, which is just -- separates the upper and lower Ninth Wards.
Well, when these areas gave way, what happened: all this water from Lake Pontchartrain came pouring in. We also know that New Orleans is kind of like a bowl. So instantly the water level of the city went up to the level of the lake. But what this lawsuit focuses on and the reason this is so neat and this move much better than the others, this area right here, it's the Mississippi River Gulf....
PHILLIPS: That's the Mr. Go. Right?
CALLEBS: Right. Mississippi River Gulf Outlet, Mr. Go.
PHILLIPS: I remember that from living there. There you go.
CALLEBS: You've done very well. Well, this is...
PHILLIPS: Well, it's supposed to be shorter.
CALLEBS: Yes.
PHILLIPS: Shorter route.
CALLEBS: Easier route for ships to come up. But what happens is, as this storm came in, in a counterclockwise spin, it pushed all the water from the Gulf of Mexico straight down this -- just like a bowling alley, basically. And the pins would have been in St. Bernard Parish, Chalmette, New Orleans East.
So these people have filed suit. There are four or five defendants -- four or five plaintiffs right now. And -- but all these people who lost so much really stand to benefit a great deal.
PHILLIPS: So even though that was a shorter route, the intentions were good, didn't they know all along, the Army Corps of Engineers that it wasn't deep enough and that eventually that could lead to a flooding problem?
CALLEBS: Right. And that's what makes this significant. This may never really pan out the way folks want it. It was supposed to be just an easy navigation way for ships. But it didn't work. It simply didn't work. It wasn't deep enough. It caused all kinds of problems. Very few ships used it. Most went straight up the Mississippi. Just as easy for them. So that's how that unfolded in that area.
PHILLIPS: So what makes this lawsuit so much, well, different from all the other lawsuits? None of the other lawsuits held up, right? CALLEBS: Right, right. This is what's important. You have to go back to the year 1928. That is when a -- the Flood Control Act was approved. And basically, it says, look, if the federal government is trying to make sure that you're not harmed by a flood, you can't sue them, even if the Corps, which many say did a lousy job in this area.
But this is interesting, because this has nothing to do with flood protection. This is all about commerce. This is all about navigation. This is all about transportation.
PHILLIPS: Wow.
CALLEBS: So that's the reason they're focusing on this. That's the reason all the other lawsuits got tossed out. But this one is moving forward. And boy, tens of millions of dollars at stake here. If these handful of plaintiffs win, then this entire section -- you remember St. Bernard Parish.
PHILLIPS: Right, right.
CALLEBS: Every home, every building was basically affected there. So all these people could stand a chance to join in this legal action if it goes forward. The government, for its part says, "Look, this was such a disaster, this really didn't make things any worse."
PHILLIPS: So basically, the Army Corps of Engineers, then, are they being asked to basically restore all the wetlands? I mean, that would be impossible.
CALLEBS: It is. And let's take a look -- not this one, I think it's this one. Where is it? This one? Well, remember this. You know, these are the homes that after the flooding came in, all these various names up here where people came.
PHILLIPS: There we go.
CALLEBS: That's the one we're looking for.
PHILLIPS: That's what we want to see.
CALLEBS: And this is what they're trying to avoid. Because the Corps has to, by mandate of Congress, restore some 20,000 acres of wetlands that they destroyed there, because the wetlands acts as a buffer. It would slow down that water.
And you know what? Mr. Go was such a success, you know what they're going with it now? They've blocked it up to keep water from going down it. So it was a disaster. It's over now. And hopefully, people who went through this almost four years ago -- hard to believe, almost four years ago -- won't have to go through this again.
PHILLIPS: Well, all right. We'll track it. Sean, appreciate it.
Well, more veterans are testing positive for life-threatening illnesses. The latest on the investigation that we've been on top of since the very beginning into that unsterilized medical equipment used by the V.A. We'll have that right after the break.
(COMMERCIAL BREAK)
PHILLIPS: Stephen Hawking rushed to the hospital in Cambridge, England. The 67-year-old author and noted expert on the cosmos is described as seriously ill with a chest infection.
Hawking has long suffered from ALS, commonly known as Lou Gehrig's Disease. Victims usually succumb to it within three years. Hawking has survived more than 40 years.
(COMMERCIAL BREAK)
PHILLIPS: Update now into that ongoing investigation into properly sanitized equipment at several V.A. hospitals. More veterans who received colonoscopies are testing positive for life-threatening illnesses. CNN medical correspondent Elizabeth Cohen is here with the new numbers.
Oh, boy. We knew this was going to keep unfolding once we were on top of the story.
ELIZABETH COHEN, CNN CORRESPONDENT: That's right. Because you have been on top of this story from the beginning on this show.
And so what we've learned over the past couple of weeks is that at three different V.A. centers, some colonoscopies and other procedures were done on equipment that was not properly sanitized. So they put out an all call and said veterans needed to come in, 10,000 veterans approximately, need to get tested for these diseases.
So, for example, in Murfreesboro, Tennessee, they've been doing testing, and they found that 12 people have hepatitis and one person has HIV. In the second center, which is in Augusta, Georgia, they found that six vets have hepatitis and one vet has HIV. And in Miami, when they called in folks who have received these colonoscopies, and said, "Hey, come back and get tested," seven have hepatitis and one has HIV.
Now, the V.A. knows they haven't tested everyone. They know that some people have not come in. They are still looking for veterans who received these initial colonoscopies, et cetera, to let them know, "Hey, you need to come in to get tested for hepatitis and HIV."
PHILLIPS: So do they know if they got the hepatitis or HIV from those original tests?
COHEN: This is a crucial point. Just because someone tested positive does not mean that they got hepatitis or HIV from this -- this tainted equipment. And the reason why is that there are many ways to get hepatitis or HIV. So perhaps the veterans contracted the disease in another way and also got a colonoscopy. It doesn't mean the colonoscopy gave it to them.
PHILLIPS: Right.
COHEN: It could just be a coincidence.
PHILLIPS: How do you -- how are you going to prove that, though?
COHEN: It is very difficult.
PHILLIPS: What's the V.A. doing now?
COHEN: Well, right now they're doing the disease detective work to figure out, these veterans, did they get it from the test or did they not get it. But the folks at the V.A. tell us, in a way, it doesn't matter because they're going to give these veterans care, no matter how they got the hepatitis and the HIV.
Also, they are working with advocates for the homeless. They know that some of the veterans who got these tests may be homeless and may be hard to find. And so they're working with homeless groups to try to bring those folks on in.
PHILLIPS: All right. We'll keep following up the story. Thanks, Elizabeth.
Well, you'd think an important part of finding Somali pirates would be to get them off the water and into jail. But many are set free, thrown back into the pirate pool after they've caught -- after they've been caught, rather, entwined in international legal issues.
Well, in fact, NATO warships scored important victories over Somali pirates over the weekend, but they let the pirates go. CNN's David McKenzie explains.
(BEGIN VIDEOTAPE)
DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): Shots ring out at sea, a NATO warship in hot pursuit of Somali pirates in the Gulf of Aden. The Canadian frigate spotted the pirates trying to hijack a Norwegian cargo ship. After a seven-hour chase, they grabbed the pirates, questioned them, then released them.
Canada's prime minister defending the tactics.
STEPHEN HARPER, CANADIAN PRIME MINISTER: We obviously act within our legal authorities and also within our capacities, and in this case, since you know, we did briefly detain pirates and disarm them. And I think that was the appropriate -- those were the appropriate measures under the circumstances.
MCKENZIE: NATO says that arresting pirates is not within their mandate, despite international conventions clearly stating that any warship can detain pirates.
Earlier in the weekend, a Dutch ship stopped a pirate attack, freed 20 hostages and also released the pirates.
The leadership of Somalia's transitional government is not impressed with the international help. PROFESSOR ABOURRAHMAN HAJI ADAM, SOMALI DEPUTY PRIME MINISTER: This is something that we could have done something about it. The international community still are actually giving less consideration of support than the Somali government to hold the threshold (ph), quality and disparity.
MCKENZIE: Coalition and NATO forces do have scores of boats off the coast patrolling against piracy. But despite their recent aggressive tactics, pirates continue to attack ships seemingly at will, hijacking a Belgian dredger ship the Pompei, way off the coast of east Africa, near the island atoll of the Seychelles, some 800 miles from Somalia.
Pirates are reportedly sailing the ship back to their coastline, where more than 200 sailors remain hijacked waiting for ransom to be paid.
David McKenzie, CNN, Nairobi, Kenya.
(END VIDEOTAPE)
PHILLIPS: Well, last time I talked to Ken Quinn, pirates had taken his captain and the USS Bainbridge was about three hours away. So much has happened since we last talked. Ken joins us for another exclusive interview in just a few minutes.
Big question right now for those of us who fly: how did security fail to stop a gunman who took over a Canadian airliner and held six crew members hostage for eight hours?
The ordeal ended today at the Montego Bay airport, where Jamaican troops stormed the plane and captures the suspect. There were no injuries. Officials describe the 20-year-old Jamaican as mentally challenged. They say he forced his way through the security and onto the Boeing 737 after it landed on a flight from Halifax. He had demanded to be flown to Cuba.
To Iran now, and the case of an Iranian-American journalist convicted of allegedly spying for the U.S. Some senior Iranian officials appear to be taking steps to ensure that the case of Roxana Saberi doesn't derail moves for a possible dialogue with the Obama administration.
Iran's judiciary today ordered a careful and speedy appeal process for Saberi. Also allowed her parents to visit.
She was sentenced to eight years in prison last week. President Obama has called for her release, saying he's gravely concerned about her safety.
Columbine High School stands quiet and empty today, the tenth anniversary of that shooting and bombing attack that killed 13 people. The school is closed, and across the state of Colorado flags have been lowered in remembrance.
As the sun set last night, a public candlelight vigil honored the 12 students and 1 teacher gunned down by a pair of classmates. Tonight, there's a memorial service in the same park in Littleton, right across from the school.
(COMMERCIAL BREAK)
PHILLIPS: All right, we're getting ready to hear from the president, who as you know had gathered with his Cabinet for the first time as becoming president. It was the first official meeting with his Cabinet. The big challenge was to cut $100 million in the next 90 days, $100 million in budget cuts. And as we wait for that to gear up and take this -- all right, let's go ahead and listen in.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Well, I just had my first official Cabinet meeting. We have one future Cabinet member missing, but everybody else is present and accounted for. I delivered a few messages.
Number one, I am extraordinarily proud of the talent, the diversity and the work ethic of this team. In an unprecedented situation where we had to hit the ground running and get an enormous amount done in the first three months, everybody here has performed, I think, at the highest levels. And I'm extraordinarily proud of the quality of this Cabinet.
Number two, I emphasized to this Cabinet that we have had to take some extraordinary steps in order to shore up our financial system and to deal with an unprecedented economic crisis. And as a consequence, we've had to spend a significant amount of money, both on the Recovery Act to create and save jobs and to lay the foundations for long-term sustainable economic growth, also in order to make sure that the financial systems are strong enough to start lending to businesses and communities so that we can start creating jobs again. That was the right thing to do and the necessary thing to do.
However, moving forward, we have an obligation, as I talked about in my weekly radio address or Internet address now, to make sure that this government is as efficient as possible and that every taxpayer dollar that is spent is being spent wisely. Joe Biden's doing an outstanding job working with all the Cabinet members to make sure that the Recovery Act is moving out in -- with unprecedented transparency and effectiveness. I'm very grateful to him and his team for the work that's being done there.
Many of the agencies have already taken some extraordinary steps to consolidate, streamline and improve their practices. Just a couple of examples: Veteran's Affairs has canceled or delayed 26 conferences, saving nearly $17.8 million, and they're using less expensive alternatives, like video conferencing; the USDA, under Secretary Vilsack, is working to combine 1,500 employees from seven office locations into a single facility in 2011, which we estimate will save $62 million over a 15-year lease term. Janet Napolitano at the Department of Homeland Security estimates that they can save up to $52 million over five years just by purchasing office supplies in bulk.
So, there are a host of efficiencies that can be gained without increasing our personnel or our budget, but rather decreasing the amount of money that's spent on unnecessary things in order to fund some of the critical initiatives that we've all talked about. Obviously, Bob Gates just came out with a historic budget proposal with respect to the Pentagon, and we expect to follow up with significant procurement reform that's going to make an enormous difference.
So, none of these savings by themselves are going to solve our long-term fiscal problems. But taken together, they can make a difference and they send a signal that we are serious about how government operates. So, one of the things -- messages that I delivered today to all members of the Cabinet was, as well as you've already done, you're going to have to do more. I'm asking for all of them to identify at least $100 million in additional cuts to their administrative budgets, separate and apart from the work that Peter Orszag and the rest of our team are doing to go line by line with the budget and identify programmatic cuts that need to be made.
And in the next few weeks, we expect to cut at least 100 current programs in the federal budget so that we can free up those dollars in order to put them to use for critical areas like health care, education, energy, our foreign policy apparatus, which is so important.
So, I'm very pleased about the work that we've done, but we've got more to do. And one of the things that everybody here is mindful of is that as we move forward, dealing with this extraordinary economic crisis, we also have a deficit -- a confidence gap when it comes to the American people.
And we've got to earn their trust. They've got to feel confident that they're dollars are being spent wisely, and I have every confidence that the team that I put together is going to be able to deliver on that efficiency and productivity in the weeks, months and years to come.
OK. Thank you, everybody.
(CROSSTALK)
OBAMA: It is, and that's what I just said. None of these things alone are going to make the difference, but cumulatively, they make an extraordinary difference because they start setting a tone. And so, what we're going to do is line by line, page by page, $100 million there, $100 million here, pretty soon, even in Washington, it adds up to real money.
UNIDENTIFIED MALE: Thanks, guys. Thank you, guys.
OBAMA: All right? Thank you guys.
PHILLIPS: Just after his first Cabinet meeting there officially as president, Barack Obama meeting there with the members, talking about, OK, we've got $100 million in cuts that we need to make in the next 90 days. And we'll be talking about where all those cuts will be of course within the next hour and a half of this program and throughout the network.
Well, it's a sign of the times. A man in a suit on the side of the road looking for work. Will our 30-second pitch help this chiropractor drive home a job?
(COMMERCIAL BREAK)
PHILLIPS: Well, now that the captain and crew of the Maersk Alabama are safe and sound, they can tell their stories. We're hearing from the Alabama crew about the experience. But let's go ahead and rewind to April 8th. We weren't on board the ship during the hijacking, but we were about as close as one could get. I actually was on the phone with second mate Ken Quinn as the drama was playing out.
(BEGIN VIDEO CLIP)
PHILLIPS: Ken, can you tell me the situation right now?
KEN QUINN, SECOND MATE, MAERSK ALABAMA (via telephone): Right now, they want to hold our captain for ransom, and we're trying to get him back. And we have a coalition warship that will be here in three hours. So, we're just trying to hold them off for three more hours, and then we'll have a warship here to help us.
(END VIDEO CLIP)
PHILLIPS: Well, that was the voice. Here's the face. Ken Quinn, his wife, Zoya, and their -- or, Zoya, yes, and their little boy. Oh, there's number two. We were wondering if we were going to be able to get Justin back. He's only 2 months old, and he's doing just great right now. And then we've got Jason, who's 3, on Ken's lap. Great to see you guys.
ZOYA QUINN, KEN QUINN'S WIFE: Hi.
QUINN: Great to be here.
PHILLIPS: Ken, I tell you what, that was a pretty wild day. And I remember trying to get in touch with you on that ship. We were going back and forth whether it was a good idea or a bad idea. And the next thing I heard, you were OK taking the call. As you listened to our interview again -- it's obviously been a while -- what do you remember from that moment? What were you doing at that exact, you know -- besides multitasking and talking with me?
K. QUINN: I just thought it was great to talk to somebody from the world outside of our ship because everything we'd been through, it was just good to talk to somebody at home from the States.
PHILLIPS: So, you were actually OK talking to me even though you were trying to figure out how to get your captain back?
K. QUINN: Well, I wasn't OK with it. But I, you know -- we were pretty busy at the time. But it just happened so fast. You know, it just happened. PHILLIPS: Well, I tell you what, let's go back to another part of that interview because I want to ask you about this one moment. Let's go ahead and roll part of that again.
(BEGIN VIDEO CLIP)
PHILLIPS: Can you see that lifeboat with your captain, with the pirates? Is he OK? Is he still alive?
K. QUINN: Yes, yes. He talks on the -- he's got one of our ship's radios, yes. He's talking.
PHILLIPS: So, what is it the pirates want now in exchange for your captain?
K. QUINN: Oh, I've got hang up. I can't...
PHILLIPS: OK, Ken.
K. QUINN: ... I've got to go right now. I've got to (INAUDIBLE).
PHILLIPS: Ken, I don't want to hold you up. Appreciate it.
(END VIDEO CLIP)
PHILLIPS: All right, Ken, you had to go. I wasn't about to hold on to you. What did you have to do at that moment? Do you remember?
K. QUINN: Yes, we were piloting the ship, chasing the lifeboat, still.
PHILLIPS: You were actually chasing your lifeboat where the captain was, where the captain...
K. QUINN: Yes, we were trying to head them off, to keep them from getting to Somalia. You know, keep them from getting any closer.
PHILLIPS: Wow. Now, did you think you were ever going to see your captain again -- first, let me ask you this. Tell me how he gave himself up to the pirates. How did that all go down?
K. QUINN: He talked them into taking our -- one of our -- first it was a rescue boat. He talked them into getting in that and telling them that the warship was coming, they'd be better off to take our boat and head for Somalia. And he offered them some money out of the safe and food and water.
And he talked them into it. He used psychological warfare on the prisoners. Because we could hear them sometimes talking to him. And sometimes it was funny what -- you know, I can't remember exactly what he was saying, because we would -- he'd be walking through the ship. They're trying to look for us, and then they were trying to get the boat ready.
He was trying to get them interested in taking the boat, some of the stuff he was saying to them. We were just going, oh, yes, this guy, the captain's just pulling the wool over their eyes. You know, we're going, yes. It made us feel good.
PHILLIPS: Wow. So, was this where you guys were hiding? You were barricaded -- you had yourself barricaded at this point?
K. QUINN: Yes, we were barricaded, yes.
PHILLIPS: OK, where were you?
K. QUINN: We were just in a void space.
PHILLIPS: OK, so you've barricaded yourself. Now, was the purpose of that so you could stay in control of the ship?
K. QUINN: Yes.
PHILLIPS: OK, how does that work? How did you stay in control of the ship while your captain is trying to distract the pirates?
K. QUINN: Well, the chief engineer shut the whole plant down so it was a dead ship, so the pirates, they don't know how to do anything without us. They don't know how to start the engine, of course, because it takes, you know, skilled engineers to do that. They don't know how to navigate -- they might know how to navigate. But they couldn't do anything. They were totally frustrated, totally.
PHILLIPS: Wow. All right, I want to get back to you in a minute. Zoia, when did you first hear from your husband? Was it when I was talking to him on the phone?
Z. QUINN: Oh, well, he called me right after he talked to you, I guess.
PHILLIPS: Oh, my gosh. And what did he say to you?
Z. QUINN: He told me that he was safe and that he was OK and the whole crew was OK except the captain.
PHILLIPS: And how did that -- can you remember at that moment how you were feeling, what you were thinking? I mean, here you are with a 2-month-old, a 3-year-old, and you're hearing that your husband is on this ship with pirates.
Z. QUINN: Yes, I still can remember how I feel because it was really scary for me and for our whole family.
PHILLIPS: I can just imagine. Well, Ken, I'm glad that you hung up with me and called your wife. That makes me feel a lot better. But, OK, so here you were. You guys were hiding out. The captain's trying to negotiate with the pirates. When did they take him? How did that happen? And where were you guys?
K. QUINN: Well, the engine on the rescue boat conked out. So, then we had to switch plans and launch the lifeboat. And then they had to make an exchange because everybody was on the rescue boat, the three pirates and the captain. So, they had to get on the rescue boat.
But now, we got the boatsman and the third engineer on the lifeboat. So, they motored up to the gangway, and we were going to make the exchange with the pirate that we had, Abdul. And the boatsman and the third engineer came up the gangway. And I don't know what happened, but I guess the pirate went down the gangway before the captain could come up.
But I wasn't down there. I was on the bridge. So, I don't really know what happened there.
PHILLIPS: Now, you still had another pirate being held captive, or was this -- because one was taken into custody. So, you had a -- did you still have another pirate that you were able to tie up and keep on the ship?
K. QUINN: No, there was four altogether. We got one.
PHILLIPS: OK.
K. QUINN: That was our prisoner. That's the one we were going to make the exchange with. So, there was three left in the lifeboat with the captain.
PHILLIPS: Now, the one that you had on the ship, wasn't there a point where you guys were struggling with him and there was an opportunity to possibly kill him, and one of you guys said no, don't do that? Can you tell me what happened with that struggle?
K. QUINN: Well, the chief engineer and the A.B., they took him first outside where we were. And then as soon as they could get him to the door, then we took him, and we -- you know, we retied his bonds. And then I had to do some first aid on him because he was bleeding a little bit.
Yes, there were some high emotions there going on. I was just trying to settle him down because we thought -- I thought the mothership was going to show up. Because we just passed the mothership three hours before. That's where this boat came from. They launched it from the mothership. So, I figured if we do any harm to the pirates, and that mothership shows up with 50 more pirates, then that would be the end of us for sure, if they find out we did something to the pirate.
PHILLIPS: And that's what I think amazed so many people. How did you restrain yourself? How did you guys as a crew keep from killing this guy when you saw the pressure of everything and your captain was being held hostage, you were worried about him, you saw the guns up against him?
K. QUINN: I just kept telling them guys, don't forget, we just passed the mothership. And we need to take care of this guy in case, you know, they have a whole fleet show up here, you know. We don't want to -- because we don't have no guns. We didn't have nothing. So, the only thing we had was, you know, to keep this guy all right in case his buddies show up. PHILLIPS: Let me hear it from you, Ken. Why is your captain being hailed a hero, and why does he not want to be called a hero?
K. QUINN: Well, the U.S. Navy, they're super highly skilled. They're pretty much heroes. But he is a hero. The captain was a hero. He really pulled -- he kept us safe.
Because, you know, they could have shot him any time. They kept telling him, where's the crew? They asked him where the crew was. And he never gave us up. And the other guys on the bridge, they never gave us up, either. And they were getting pretty close to shooting the third mate and the 488B ATM Reza (ph).
PHILLIPS: Amazing. Well, finally, are you going to go back on that ship? Are you going to continue to do the work that you do?
K. QUINN: Oh, yes. I'm a merchant marine. You know, I can't make a career change yet unless you got a job for me here.
PHILLIPS: You know what, we probably could work on that. You could probably do a 30-second pitch, and we could get you a job in a heartbeat.
K. QUINN: All right.
PHILLIPS: Zoya, what do you think about that? It would probably make you a lot more happy.
Z. QUINN: Let's do it. Yes.
PHILLIPS: That's amazing.
K. QUINN: She's ready to move.
PHILLIPS: I bet she is. That was tough for her. Well, I'll tell you what, you showed absolute strength. I want to thank you so much for talking to us that day. I know you had a lot going on.
We salute you, Ken, and Zoya, you as well, for remaining so strong and keeping the kids together until dad got home. And I bet you're going to do a lot of celebrating and relaxation. Hopefully take a vacation, yes, Ken?
K. QUINN: Oh, yes.
PHILLIPS: OK, good. Zoya, you get to pick the spot.
Z. QUINN: Yes.
PHILLIPS: Ken Quinn, Zoya Quinn...
K. QUINN: Well, this was like a vacation here.
PHILLIPS: Yes, there you go. Coming to CNN. Well, we appreciate your honesty and just spending more time with us, Ken, really. It meant a lot to us. And we're glad you're home safely. K. QUINN: OK, Kyra. It's nice to see your face, because I haven't really known who I was talking to all this time.
PHILLIPS: And you know what, me, too.
K. QUINN: Actually, I haven't heard the phone conversation ever.
PHILLIPS: You haven't heard the whole thing?
K. QUINN: Nope.
PHILLIPS: All right, tell you what, Sarah is right there next to you holding your baby, Justin. I'm going to tell her right now to get a copy of that entire interview for you guys, all right?
K. QUINN: OK.
Z. QUINN: Thank you.
PHILLIPS: All right. You bet.
K. QUINN: Thank you.
PHILLIPS: Stay strong. Great to see you both.
K. QUINN: Thank you.
PHILLIPS: Well, on the one hand, you can totally understand why a school would shield your kids from certain Web sites. The Internet isn't exactly McDonaldsland. But what happens when legitimate and potentially controversial sites get caught in the filter? We're going to push forward on this story coming up next.
Also, if your recent college grad is getting ready to hit the job market, we're going to point him in the right direction where those jobs are.
What do you do when the recession is eating your barbecue business? Can you see why we were just laughing? Easy, just add a mannequin that would make your kid (INAUDIBLE). Well, don't they teach this in business school? Barbie Q here has helped bring in more customers to this barbecue joint near Cincinnati. That's what the owner says. Next week he's dressing her up like Daisy Duke. And in case you're wondering, well, they're not real.
And maybe you think that there's no way that you can get a decent car that you can afford. Well, a couple of guys set out to prove otherwise. The proof is in the '74 Pontiac Le Mans. Take a look. It's straight out of "Starsky and Hutch."
But the two guys paid 899 bucks for it, sank a couple hundred into it and then drove from San Diego to Miami and had no major problems. The guys have a Web site, by the way, carsforagrand.com. Can help find cars that you don't have to finance.
Well, if the guys driving cross-country had been driving through Phoenix just a few days ago, they might have seen this guy. The man sitting by the road in a suit and tie is Bill Baron. The licensed chiropractor has been doing that during morning and afternoon drive every weekday for five weeks.
He says work has just dried up, and he's hoping to drive home a job. When we saw his determination to find work, we thought he'd be a perfect candidate for our 30-second pitch. Bill, thanks for joining us.
BILL BARRON, JOB SEEKER: Thank you, Kyra. Thank you for having me.
PHILLIPS: So, what gave you this idea? Why was this the way you wanted to go, just parking it on the side of the street and asking for work?
BARRON: Well, actually, I tried the normal ways. I checked the classifieds, did the Internet thing and attended a couple job fairs. And those just didn't have anything to offer. So, I decided that something creative, something that perhaps would catch some attention would be the thing to do.
So, I took my chair, I had my little sign made and went out to one of the busy intersections in north Phoenix and set up my sign. And there I have been for the past five weeks.
PHILLIPS: OK. Has anybody offered you a job in those five weeks?
BARRON: No, ma'am, I have not had a job offer. I have spoken with hundreds of people about opportunities in multilevel marketing and that sort of thing. But job offers, no. Other than the guy who asked me to murder his wife, I have had no legitimate job offers.
PHILLIPS: Oh, no! OK. Now, that's frightening. How much did he offer you?
BARRON: Well, unfortunately, it was a blocked call, but it was obviously I think one of those prank calls where the guy said, I'll give you $50,000 to murder my wife.
PHILLIPS: And of course you wouldn't do it. OK.
BARRON: No, of course not.
PHILLIPS: All right, well, how about giving us a 30-second pitch? Are you ready?
BARRON: I'm ready.
PHILLIPS: OK, we're going to start the clock. Go for it, Bill.
BARRON: Thank you, Kyra.
I'm seeking an executive salaried position with a company that can utilize all or part of my diverse experience to help them create change with their company, to create the best relationship possible with their clients and their employees. I can perform every function necessary to run a successful business. An ideal physician could be in health care administration, security, protection or loss prevention, advertising, public relations or executive management. If you want change in your company, you want me.
PHILLIPS: Look at that. With one second to go, boom. Bill Barron, we want to get you off the side of the road, my friend. That e-mail, executivejobsearch@cox.net. Will you let us know what happens?
BARRON: Yes, ma'am, I will. And thank you very much for your time.
PHILLIPS: It was our pleasure, Bill. Talk to you soon.
BARRON: Have a great day.
PHILLIPS: You, too.
Straight ahead, Iran's president kicking up trouble once again on one of his favorite topics, the Holocaust. His remarks at a U.N. racism conference trigger outrage and a walkout.
(COMMERCIAL BREAK)
PHILLIPS: So, what do you expect at a speech by the president of Iranat a U.N. conference on racism? Well, protesters heckled, European envoys walked out and several countries, the U.S. included, boycoted it. Still, Mahmoud Ahmadinejad held court in Geneva for half an hour, calling Israel, quote, "the most cruel and repressive racist regime."
(BEGIN VIDEO CLIP)
MAHMOUD AHMADINEJAD, PRESIDENT OF IRAN (through translator): And they send migrants (ph) from Europe (INAUDIBLE) and from other parts of the world in order to establish a totally racist government in the occupied Palestine.
(END VIDEO CLIP)
PHILLIPS: CNN's Atika Shubert following developments from London. Atika, I guess first things first. Why on earth was Ahmadinejad the keynote speaker?
ATIKA SHUBERT, CNN CORRESPONDENT: Well, according to U.N. officials, it was really just a matter of protocol. Iranwas the only delegation to send their president as the head of the delegation. And according to U.N. protocol, heads of state speak first. And that's why he appeared to be the main or the key speaker of the event. The others that spoke after him were ministers, foreign ministers and so forth, and that's why he had this platform all to himself.
PHILLIPS: And then other countries stepped in, walked out, other countries also boycotted this, correct? SHUBERT: That's right. A number of countries walked out. A lot of them European countries, Spain, France and Britain, for example, all roundly condemned his speech. Also, it has to be said U.N. Secretary General Ban Ki-moon said that he deplored the speech.
But what's interesting there is also that the U.N. human rights commissioner, who was part of the organizing panel for this, said the answer was not to ignore the speech or boycott the speech but to give a reply and answer to correct that speech. And she urged countries to attend and correct that point of view.
Certainly, some of them will be staying. France and Britain, for example, will be staying throughout the conference, even though they walked out of his speech.
PHILLIPS: Well, I guess you see what's happening here, and it's pretty obvious there's an issue with regard to racism. And if something needs to be done, but at the same time, with this, I mean, all happening, how can anything get accomplished at this summit? Can anything get accomplished?
SHUBERT: Well, that's what everyone is asking. I mean, you have to remember, there was a similar conference in 2001 in Durban, South Africa, where a very similar thing happened. Delegates were again targeting Israel. The whole thing just really snowballed. And the U.S. and Israel walked out of this one. That's why they boycotted this conference.
And now, all these appeals for global unity, it just doesn't look like it's going to happen, so nobody really expects to see much coming out of this conference in the end.
PHILLIPS: Well, it's a shame. It's a lot of time, a lot of money and a huge opportunity lost. Atika Shubert, appreciate it.
