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Obama, Clinton Meet with Afghan, Pakistani Presidents; Top Banks Might Need Additional Financial Cushion; 2 Marines Dead After Chopper Crash; Options Available for College Financing; Police Accused of Shakedown; President Obama Supports "Cash for Clunkers" Deal
Aired May 06, 2009 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: We begin this hour in one of the most dangerous areas on Earth. In Pakistan, the Taliban gains ground, and panic sets in. Could militants seize control of its nuclear weapons? An orphanage caught in the crossfire. The fighting spreads, and tens of thousands of people are now running for their lives.
Across the border in Afghanistan, anti-U.S. outrage grows. Did an American-led operation kill dozens of civilians?
Those crises are the focus today at the White House. In fact, President Obama is set to meet with the leaders of Pakistan and Afghanistan. The stakes, as you imagine, are huge. White House correspondent Suzanne Malveaux is joining us now to explain a little bit more this morning.
Suzanne, what does the administration hope to accomplish in these meetings?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, first and foremost, Heidi, they really hope to get these leaders together in the same room to come up with some sort of strategy in dealing with going after the Taliban and al Qaeda. You may notice that the administration really has shifted its focus somewhat after a 60-day strategic review. We've heard President Obama talk about the importance of Afghanistan, getting U.S. troops and NATO troops over there, about 21,000 additional troops that will be going to Afghanistan.
But it is Pakistan now from this strategic review that is really being threatened by the Taliban, resurgence from the Taliban. There is a problem, as well, the Obama government identifying it that the Pakistani government has not been able to provide basic services for its people. At the same time, you've got the Taliban gaining strength here.
So, clearly, this is going to be a chance for these leaders to sit down and talk about what is the reality on the ground. How can these two leaders work together? This is just the beginning, Heidi, they say it's not -- it's just a process, it's not a precooked situation. They just want to get them to talk to each other and to figure this out.
It's a first step, Heidi, we're told, that there are going to be four of these types of trilateral get-togethers in the course of a year or so. This is just the beginning.
COLLINS: Right. Well, remind us, if you would, Suzanne, the state of play over in that region right now. I mean, some people may not understand the detail here, and why the United States should be concerned.
MALVEAUX: Well, President Obama has made it clear that he believes that this is really a threat against U.S. security, that the Taliban has gained strength. As we know after September 11th terrorist attacks, the U.S. forces went into Afghanistan, basically squashed the Taliban -- the Taliban supporting al Qaeda. This has now spread over to Pakistan. They believe very much that there are sanctuaries inside of Pakistan.
So, the idea here is to go after both because if these two groups, if these extremists gain power, that gives them an opportunity, a safe place to perhaps go ahead and plan further attacks on U.S. soil.
COLLINS: Of course. All right. Suzanne Malveaux, outside of the White House for us this morning -- thanks, Suzanne.
Here's a look now at the president's schedule for you this morning. At 2:00 Eastern, he and Vice President Biden are due to meet with President Karzai of Afghanistan. And later that hour, they're scheduled to meet with President Zardari of Pakistan. At 3:30 Eastern, the meetings will include both presidents Karzai and Zardari -- we'll be watching for that.
Also, U.S. nemesis, Iran. It's pushed to expand a nuclear program and its controversial move to send an American journalist to prison for allegedly spying -- all likely topics this hour on Capitol Hill. The Senate Foreign Relations Committee is holding a hearing on Iran. We are watching it, and of course, we'll keep you updated.
Banks said to be too big to fail. A Senate Banking Committee hearing underway this hour on the status of troubled banking institutions. Many are already being propped up by billions of dollars in taxpayer money, as you well know. Well, we are keeping an eye on that here, and, of course, we'll bring you any updates on that just as soon as we may get them.
Also, keeping our eye on that -- that's the Big Board, of course. Dow Jones industrial average is up about 50 points right now, resting at 8460. About a half hour into the trading day.
Bank of America, one of the largest recipients of the controversial taxpayer bailout. And today, there are reports the Charlotte, North Carolina-based bank needs as much as $34 billion in new capital.
Our CNN Money Team, of course, is following that story for us. And Christine Romans is joining us live from New York.
OK. So, that's a lot of money, Christine. CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It is a lot of money, Heidi. And it's more money than people have been thinking that this company would have to raise. And we don't know for sure, and we won't know for sure until tomorrow when the federal regulators officially release the results of those so-called stress tests, the financial treadmill they've put these banks on.
But numerous reports this morning that Bank of America would have to raise about $34 billion to cushion its books from potential future losses and the worst-case scenario if the economy were continue to sour.
Also reports that Citi would need maybe $5 billion to $10 billion. Overall, as you know, Heidi, over the past few days, numerous reports that 10 of the 19 banks will have to raise money some way, shape or form.
COLLINS: Yes. But that's why I'm going to say, how are they going to raise all that money?
ROMANS: Well, here, there are several ways that they can do it, frankly. And Ben Bernanke, the fed chief, yesterday, in his testimony before Congress, said that he was confident that many of the banks will be able to tap the private markets and raise this money. So, it would not be your money, not my money, but private money.
They can sell assets -- don't forget. They can sell divisions or stakes they have in foreign banks. They can raise money from private investors. And, in fact, some are saying that their stocks have been doing so well lately that they're a little more -- on a little more solid footing for this. They can convert their debt and other forms of capital into different kinds of equity. And then lastly, they can turn to the government.
But as I told you, Ben Bernanke yesterday -- obviously, that's not very popular -- Ben Bernanke yesterday did say that he thought that many of these banks were going to be able to find other ways to raise money. After the results of the stress tests are out, I think they have about six months -- these banks -- to try to figure out how to raise the capital the federal regulators say that they will need to protect themselves against future losses.
COLLINS: Right. What about Chrysler, though, too?
ROMANS: Yes. Speaking of your money, right?
COLLINS: Exactly.
ROMANS: We've been told all along that Chrysler, over the past few months, got all of these loans, your money and my money, loans from the government so that they could stay in business and avert bankruptcy. Now they're in bankruptcy and buried in that filing is the detail that about $7 billion of taxpayer money will not be repaid. It will be wiped out in the bankruptcy process. So, those loans and guarantees that the American taxpayer extended to Chrysler to try to keep it alive are now up in smoke. COLLINS: Yes.
ROMANS: In response, you know, the American taxpayer, the U.S. government essentially gets 8 percent of the new company that emerges. But a lot of people have been asking me, "So, what happens to all of the money that we loaned Chrysler before the bankruptcy?" Well, that's what happened to the money that you loaned to Chrysler before the bankruptcy.
COLLINS: Yes. OK.
ROMANS: And also, the financing that the government's extending so it can operate during bankruptcy, that will not be paid back to the American taxpayers, either -- Heidi.
COLLINS: OK. And the next time, we'll chat, you'll tell me the latest on Fiat, too, right?
ROMANS: Sure.
COLLINS: OK. All right. Christine Romans, thanks so much.
An update now on those powerful wildfires we told you about a little bit earlier. Around 1,200 homes are still evacuated in Santa Barbara, California. The blaze also threatens thousands of homes just about a half mile away. Officials also closed five area schools.
This fire that spread into Coronado National Forest is still a threat to Fort Huachuca. Now, one injured person was airlifted to a hospital. Five homes were destroyed.
And construction crews keep doing their repair work in North Carolina after thunderstorms and tornadoes ripped across that state.
Rob Marciano is following all of it for us.
So, Rob, I guess the big question is: What's going to happen today in these different states we're talking about?
ROB MARCIANO, AMS METEOROLOGIST: Well, that's the thing. It's different states, it's a lot of states.
COLLINS: Yes.
MARCIANO: And not only that, but in several of these states, we're going to be seeing severe weather. We've already seen that.
And even outside of the severe weather watches that we've been showing you all morning, we've got some warnings out. This one just poured in from western parts of North Carolina, including the city of Asheville, a tornado warning in effect there until 10:45 Eastern Time, Avery Creek in the I-26 corridor there, this storm moving at about 30 miles an hour.
So, here it is roughly on the Doppler radar there. All of this moving -- this is all out ahead, really, of the main line of thunderstorms that has rough weather with it. And it goes all the way back to Texas, just east of Dallas, across Louisiana, Mississippi, Alabama, and then in through Georgia and the Carolinas. So, this is certainly a wide-ranging system, and with this comes some -- not only some tornado warnings which we have several, including the one in Asheville.
We just got one issued by the Greensburg (ph) -- oh, that's the Ashville one, one by a Limestone County and Madison County in central Alabama. This is where most of the rough weather has been. Central Alabama, this is about to go through Birmingham. So, regardless if there -- if there's actually a tornado touching in the ground, this line of thunderstorms has some serious wind with it. You could see winds in excess of 50, 60, maybe even 70 miles an hour. So, that will certainly be enough to do some damage.
COLLINS: Wow.
MARCIANO: So, here's a good look at some of these tornado warnings that are in effect. Just north of Tuscaloosa, just west of Birmingham, and ahead -- this is one -- this is the most recent one, just north or just right around Huntsville. So, that one includes the city of Huntsville.
So, generally speaking, if you live anywhere north and west of Montgomery, Alabama, in the next 30 minutes, you're going to want to certainly take cover because we've got some rough weather heading your way.
COLLINS: OK.
MARCIANO: Here's a general set-up, Heidi. This stationary boundary has been kind of a headache of everybody across the southeast and mid-south the past couple of days. It's not moving. And it continues to be these impulses of energy that bring that, not only the severe weather but heavy rain. And that heavy rain will be heading back to the northeast, they've been very wet.
And meanwhile, big ridge bumping out out west, hot, dry conditions. You mentioned the fires out there.
COLLINS: Yes.
MARCIANO: So, that is -- that's not necessarily going to help (ph). It won't be incredibly windy out there, but it will be warm and it will be dry, and there's no moisture that's going to help the fire fighting efforts out west.
COLLINS: Yes. Never a good combination, obviously.
All right. Rob, I know you got a lot going over there today. Let us know.
MARCIANO: All right. You got it.
COLLINS: Thank you. Two Marines are dead this morning, killed in the military helicopter crash near San Diego. The chopper was Camp Pendleton. We want more now on this story just developing as we speak.
Sharon Chen of affiliate XETV is joining us.
So, Sharon, what's the very latest? What do we know at this point?
SHARON CHEN, XETV-TV CORRESPONDENT: Heidi, at this point, there is a sheriff's helicopter, the Astro (ph), is about to land here in minutes. So, I do apologize if it does get loud.
But they are bringing this chopper in to basically keep watch over hot spots. As you know, this fire last -- or this crash happened last night at about 11:30, and it did spark a small, one-acre brush fire. And so, they're going to keep watch -- keeping watch over that.
As for the military helicopter that went down, I do want to kind of get to some facts right now. Here's what we do know. It was a Cobra AH-1W attack helicopter that went down. There were two Marine pilots on board. Both have died in the crash.
The chopper is based out of Camp Pendleton, and it was under the command of Miramar. The chopper was part of the 11th Marine Expeditionary Unit. And the reason they were out last night was they were flying as part of a predeployment mission last night.
And so, the crash last night, as we talked about, it did cause a small brush fire that was quickly contained.
COLLINS: Yes, really unfortunate story. So, we'll stay on top of this one for you.
Thanks so much. Appreciate that, Sharon.
CHEN: All right.
They are more than just numbers. Nearly 100 school-aged kids killed in Chicago in just three years.
(COMMERCIAL BREAK)
COLLINS: The death toll among Chicago school-aged kids keeps rising -- now, nearly 100 over three years. People are not only asking why, but when will the violence end?
Here now is CNN's David Mattingly.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): Even in Chicago, a city long suffering from deadly youth violence, the mysterious murder of 15-year-old Alex Arellano is unbelievably brutal. He was last seen Friday leaving a girlfriend's house, she told his family he was chased and beaten by young men with baseball bats. No one could say why.
After a frantic search, they found his body the next day. He had been severely beaten, shot in the head, and burned.
JUAN TIRADO, VICTIM'S UNCLE: Why would they do this to a child that has nothing to do with nothing -- and just on top of that, you know, brutally killing them?
MATTINGLY: Police say Alex had no criminal record and no known ties to gangs. In his last school picture, he looked straight into the camera and doesn't smile. His family says he was very shy, almost fearful of strangers. And even though he was well-behaved, it wasn't enough to keep him out of harm's way.
His family says they took Alex out of school in September to protect him, after he was threatened by gang members.
ASHLEY RECENDEZ, VICTIM'S FRIEND: It's sad because they didn't have to (INAUDIBLE) that one. He was -- he never did nothing wrong, never. He was -- he was a good kid. It just gets to me. It's crazy.
MATTINGLY: Alex is the 34th school-aged victim in Chicago to die violently this school year, according to an unofficial tally kept by "The Chicago Tribune." This is nothing new. Chicago public schools counted 27 deaths last year, and 31 the year before.
In May 2007, teenager Blair Holt was an innocent bystander caught in the crossfire of a gang shootout. His death sparked public protest.
(on camera): At that time, grieving family and activists blamed lax gun laws, insufficient police numbers, even bad parenting. But now, the unexplained murder of Alex Arellano and the rising death toll clearly shows the problem rages unabated.
When asked for comment, a spokeswoman for Chicago public schools told us, "It's an insult to the families, student and schools to count these poor kids and refer to them as numbers."
(voice-over): To this grieving Chicago crowd, Alex Arellano will never be a number. But in just three years, his murder is the 92nd reason to ask: How much more the city's future will die before the violence stops?
David Mattingly, CNN, Atlanta.
(END VIDEOTAPE)
COLLINS: More on the Chicago killings tonight on "ANDERSON COOPER 360." We talk to family members of those people killed and a woman who's made a memorable. She started with one brick for a victim three years ago and now she has 150. "AC 360" airs tonight at 10:00 p.m. Eastern.
Businessman and pro basketball Hall of Famer Dave Bing has been elected Detroit's new mayor. He'll serve the remaining months of convicted ex-mayor, Kwame Kilpatrick's term. You recall he resigned last year due to a sex scandal. Bing defeated interim mayor in the special runoff election yesterday. Bing defeated interim mayor, Ken Cockrel, Jr. in a special runoff election yesterday. Bing must now win the November election in order to hold on to the mayor's seat for a full term.
A small town police force accused of highway robbery.
(BEGIN VIDEO CLIP)
DAVID GUILLORY, CLASS ACTION ATTORNEY: I believe it's a shakedown. I believe it's a piracy operation.
(END VIDEO CLIP)
COLLINS: Cash and property taken from drivers under a forfeiture law. Today, questions about where some of that money went.
(COMMERCIAL BREAK)
COLLINS: OK, here's my big moment. I have to tell you about this because I'm blogging now. I'm actually going to operate the computer. Watch this.
We have a new -- see, look, I have to look over there. We have a new CNN NEWSROOM page. But look, this is what it looks like. We want to hear from you, too. Look, I can't work it. Oh, there we go.
This is our story that we do a little bit earlier, for the best cities for the recent college grads. Did you know it was Indianapolis? Yes, we heard from a lot of people in Indianapolis after that.
And all kinds of different stories out there today. A lot of this focusing on our college week that we have been doing, talking about financial aid issues, and kids just trying to get jobs after they graduate.
So, once again, if you have a recommendation, you can go ahead and post it right here, CNN.com/Newsroom.
Also, I want to mention a couple of important hearings happening right now in Washington. First up, overhauling health care. That is the topic for the House Ways and Means Committee. The new health and human services secretary, Kathleen Sebelius, is there -- you see here up top. And the swine flu outbreak is the topic for another House committee this morning. We'll stay on top of all of those for you.
Meanwhile, a Texas schoolteacher is the first U.S. resident to die with swine flu. But health officials say the 33-year-old woman had underlying health problems and have not confirmed the disease killed her. The woman was eight months pregnant. She died after being hospitalized for two weeks. After she slipped into a coma, doctors performed an emergency cesarean. She gave birth to a healthy baby girl.
There are now 30 confirmed swine flu deaths.
Women have the pill, and men may soon have the shot. A new study shows testosterone injections may be an effective form of male birth control. Our chief medical correspondent, Dr. Sanjay Gupta, explains.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, we've all heard of the pill, and a lot of people are starting to call this the shot, a male form of contraception, as you mentioned. It's interesting. This has been something that's been in development for some time -- this idea of taking testosterone in an injection form and starting to depress or suppress sperm production. That's basically how they think it works.
What they didn't know is how well it worked. That was sort of the focus of this study coming out of the research for family planning in Beijing. They tested on more than 1,000 men between the ages of 20 and 45. And what they found was that it worked pretty well. Take a look, about a 99 percent effective rate, as effective if not more so than a lot of existing birth control methods.
Also, it's worth pointing out that it's reversible within four to six months. So, men who stop taking the testosterone shots would actually have an increase in their sperm production or back to relatively normal levels within a few months.
The safety studies simply haven't been done yet. Could this possibly increase your likelihood of developing cancer? Could it have other effects on the body? They simply don't know yet. So, those safety studies need to be done.
And for some reason, we're not entirely sure why it doesn't seem to be as effective in Caucasian men versus Chinese men, in which the study was performed. So, that's something scientists are going to have to sort out as well.
In a nutshell, they're giving testosterone. It suppresses sperm production. You give the shot about every eight to 10 weeks if you can remember to do that. That's how it works. And some men, they believe that in addition to the testosterone, you may have to get another hormone as well -- something like progesterone. That's sort of the thought.
It's been interesting to point out that this has been sort of in development for sometime. And they've known that testosterone could suppress sperm production, but this is the first time that it's been studied.
So, possible birth control for men. Not available yet. Stay tuned. And when we hear about it, we'll certainly bring it to you.
Back to you for now.
(END VIDEOTAPE) COLLINS: Now that sounds like a perfect story to blog about, doesn't it? Don't forget, tell us what you think of it. CNN.com/Newsroom then click on my name. The male birth control study was published in the Endocrine Society's "Journal of Clinical Endocrinology and Metabolism."
Paying for college -- it's a real worry for the class of 2009. We've got a couple of experts on board now to help answer your pressing financial aid questions.
(COMMERCIAL BREAK)
COLLINS: The jobs picture is brightening up a bit. Hundreds of thousands of jobs are still being cut, though, each and every month. But the pace of the cuts is slowing a bit.
Stephanie Elam is at the New York Stock Exchange now with more details on this.
Hi there, Stephanie.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Heidi.
So, we're taking a look at this April report, and it shows us that 491,000 jobs were lost. That is actually the smallest decline in six months. This is according to payroll processing firms, ADP. And we like to take a look at it because it gives us a gauge of what the government may say when they give out their big report on Friday.
Now, it shows the pace of job losses is slowing compared with April losses of more than 700,000 in March. Still, the job losses were widespread, manufacturing and construction were definitely hit hard, Heidi.
COLLINS: Yes, I bet they were. Now, we do have a lot of upbeat economic reports that have been coming out lately. So, when can we say that we're out of the woods? I know, I ask you every day.
ELAM: I can't say it to you today. I can tell you that much. I wish I could say that that were the case.
COLLINS: You were really going to make news when you do say it, though.
ELAM: If I do say it and it is true, then, yes, it would be very good news.
(LAUGHTER)
ELAM: Otherwise, I mean, I could say it, but I might get in trouble.
But we are starting to see some stabilization at this point. Recovery -- it's going to take longer than it's taken at this point. And job losses are still at recessionary levels, even if they're less than expected. COLLINS: Right.
ELAM: And I'll just point out that employment is likely to fall for at least another few months. Remember, that's a lagging indicator. So, it follows as things get better, this is one of the last places that we'll see that improvement. So, the bottom line is, things are still bad, just not as bad as they were a few months ago, Heidi.
COLLINS: Yes. How about this ADP report? A clue of what to expect on Friday, right? When the government releases the most crucial economic report of the month?
ELAM: So true, and this is why -- because ADP numbers, they really give tempered estimates ahead of the government's job report. And the expectation before today was for 620,000 jobs to be lost and for unemployment to rise to 8.9 percent from 8.5 percent. We'll have to see how that holds true before Friday.
Also, one difference to keep in mind here: the government report counts public sector jobs, ADP does not. The public sector has been adding jobs, so it'll be interesting to see how that factors.
And the ADP report gave stocks an early boost and now they may soon coming back off of their highs. We're getting close to the flat line dance again. The Dow was up 4 points, 8,415, NASDAQ off now 20 points, off more than 1 percent at 1,733.
So, our early euphoria, Heidi, seems to have gone flat.
COLLINS: Yes. All right, Stephanie, we'll stay on top of it with you. Thanks so much for that.
(WEATHER REPORT)
COLLINS: This week, we've been taking a look at some of the challenges facing the Class of 2009. And we asked you to help us out with some questions on financial aid. Of course, it is a big concern for incoming college students, but student loans and scholarships really aren't the only way to pay for college.
Joining us now to talk about all of the options is Tally Hart, senior adviser for economic access at Ohio State University. That's in Columbus, Ohio. And Kevin Gaw, he's the director of career services at Georgia State University here in Atlanta. OK, so we did get quite a few e-mails and so forth from people wanting to know more about this. I want to go ahead and get to the first one and then get your comment from both of you on the backside there.
This one is from Erica. And she says this. She's a sophomore engineering student. "I don't qualify for financial aid through the FAFSA," which is Free Application for Federal Student Aid, "and I can only get a limited amount of unsubsidized Stafford Loans. I have scholarships, but I'm still short. I can't get a private loan without a co-signer, and no one close to me actually qualifies. Is there anywhere I can go to get a loan without a co-signer?" Tally, let's start with you. Is there anywhere she can go?
TALLY HART, SENIOR ADVISER FOR ECONOMIC ACCESS, OHIO STATE UNIVERSITY: I think it's really important that she contact her financial aid office again. It sounds as if she may have already done that. But I'd suggest contacting them again. Financial aid offices are trying to respond with new sorts of funds, especially some moneys from institutions themselves. And so, that would be my suggestion to Erica that she try to check back with her institution for other alternatives.
COLLINS: So, OK, that sounds pretty good. And Kevin, what about you? What sort of work options might there be for Erica in this case?
KEVIN GAW, DIRECTOR OF UNIVERSITY CAREER SERVICES, GEORGIA STATE UNIVERSITY: Well, Erica certainly could go to the career center at her campus. Career centers lately have been working very hard to diversify the job offerings for part-time employment, and -- both on campus and off campus. And I think she would be able to find something through work as a way to supplement her funding.
COLLINS: Are there still plenty of those jobs available across the country for kids in school?
GAW: Yes. Actually, there's -- many employers are using part- time as one way to meet their employment needs. So, part-time employment is on the rise, it seems, at least for college students in the immediate area or vicinity of a college campus.
COLLINS: Yes, OK. Makes sense. All right, let's get to the second one now. This from Sebastian. Wants to know, "I have $50,000 in private student loans, and I can't find work. What programs or plans are available to me so that I can lower my payment plans?" Tally?
HART: It's important that Sebastian talk with the holder of that loan, whoever is sending him the bills for his loans. Private loan companies are really working with students to try to figure out how to lower payments and make it affordable for the student to keep the loan in good standing rather than simply stop paying.
So, looping back through that company is absolutely what he needs to do. I think he'll be surprised at their responsiveness.
COLLINS: Hopefully some people will be understanding in all of this.
HART: Yes.
COLLINS: And so, Kevin, you already mentioned helping some of these kids find part-time jobs and so forth. And a lot of people are, you know, sort of going that route. But what about internships? Is that a viable option?
GAW: Oh, absolutely, internships. Although there is a slight decrease naturally with employers around internships, there's still a very strong and incredibly popular approach to finding entry-level positions. What has happened recently is that the number of paid internships has kind of shifted a little bit to unpaid internships. But they're still very popular. They're still out there. Yesterday at my campus, we had a strong showing of employers in one field recruiting for internships.
COLLINS: Yes, OK, well, that's good to hear. Also, graduate students are being hit tough in this economy. Let's look at this one now from Mary Lee: "My son is graduating from college this Friday, has plans to work and attend graduate school. It is required for his profession. So, what's the best strategy for him so that he doesn't end up having significant debt before he really hits the job market?" Great question, Tally.
HART: First of all, I hope Mary Lee will encourage her son to apply for financial aid. What many graduate students don't know is that work-study funds are available to them. And work-study doesn't just mean a minimum-wage job.
If he has a technical path that he's pursuing, he could be paid a fairly substantial hourly wage under work-study as a way to earn and to help finance his graduate education. If her son felt that he could take some time away, another excellent strategy is to do something like AmeriCorps, where you work for a year, and you earn about $5,000 toward your graduate school expenses or to pay off undergraduate loans. So, both of those are strategies I'd encourage her to help her son pursue.
COLLINS: Yes. And Kevin, you're shaking your head like you know a little something about that program for graduate students.
GAW: Absolutely. When I was a graduate student, work-study was significantly helpful for me. Work-study is a fantastic option. You have to go through a FASFA application and work with your financial aid office on campus. There's other options, as well, working with faculty as a research assistant and learning how to spread out those -- the job search on a college campus. Career centers can help as well as professors.
COLLINS: OK, very good. Some good information today. Guys, we really do appreciate it. We want these kids to stay engaged, obviously, and keep going down that career path that they are trying to get involved in. Thanks so much, Tally Hart from Ohio State University and Kevin Gaw, Georgia State University.
GAW: Thank you.
COLLINS: Crime and punishment in a small Texas town. Motorists went a few miles over the speed limit, and police took thousands of dollars from their cars and threatened to take their kids.
(COMMERCIAL BREAK)
COLLINS: Want to show you some pictures coming into us now live. We are looking at -- well, actually, that's an empty table. We were looking at some much more interesting pictures a moment ago. This is the trilateral meeting that we have been telling you about. This one at the State Department.
Afghan President Hamid Karzai and Pakistani President Asif Ali Zardari, along with Secretary of State Hillary Clinton, whom I believe they're waiting to come into the room and make some comments before these meetings. As we mentioned earlier in the show, President Obama will be meeting separately with each one of the presidents, and then there will also be a meeting amongst all three. So, we'll stay on top of those live pictures for you throughout the rest of the morning.
It's being called highway robbery. Three members of a Texas town's police force accused of targeting minority drivers and taking their money. Texas, like a number of states, has a forfeiture law. It allows law enforcement office to seize property from suspects, but there are allegations authorities in one town have gone too far.
Here now, CNN's Gary Tuchman.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): We've heard the same story over and over: Drivers telling us this small stretch of Texas highway was a trap, a systematic ambush. Amanee Busby of Maryland was forced off the road here.
AMANEE BUSBY, STOPPED BY POLICE: They took everything out of the car. They took all of us out of the car.
TUCHMAN: Jennifer Boatwright and Ronald Henderson were driving through with their two kids. They tell us they had $6,000 with them to buy a car when they were stopped.
JENNIFER BOATWRIGHT, STOPPED BY POLICE: He was already going through the glove box, and he got Ron's money.
TUCHMAN: Roderick Daniels was coming through from Tennessee. He says he had $8,500 in cash, also to buy a car. They took all of it.
RODERICK DANIELS, STOPPED BY POLICE: It makes me feel sad. Not more than angry, I feel like, man, there's no justice even with the law.
TUCHMAN: Over the last two years, scores of drivers, virtually all of them African-Americans or Latinos, say they couldn't report these crimes to the police because the men who forced them to pull over, the men who took so much from them, are the police.
(on camera): Roderick Daniels's journey took him here to the tiny town of Tenaha, Texas, population about 1,000. On this portion of U.S. 59, the posted speed limit is 35 miles per hour. Daniels says police pulled him over for going 37 in a 35.
(voice-over): Police asked Daniels if he had money. And he says he told them he had the cash to pay for that new car.
DANIELS: They said they were charging me with money laundering. I actually thought that this was a joke. I'm, like, money laundering? It sounds so dramatic.
TUCHMAN: Two cops brought him to jail. He was frightened, had no idea what he'd done wrong, but was told no charges would be brought if he left behind his cash and jewelry.
DANIELS: To be honest, I was 5, 600 miles away from home. I was very petrified.
TUCHMAN: So, he agreed to the deal.
(on camera): Roderick Daniels was released from this Texas jail without his money, without his jewelry, without the car he wanted to buy and without any hope he would see his valuables again. But now he realizes he's not alone.
(voice-over): Jennifer and Ronald were also offered a deal, this one in writing, and the district attorney signed it herself. It's a form letter, the kind of get-out-of-jail card that says in exchange for forfeiting their $6,000, no criminal charges shall be filed, and our children shall not be turned over to Child Protective Services.
The cops terrified their son, Jonathan.
(on camera): So, what did he say about your parents to you?
JONATHAN BOATWRIGHT, SON: That they were going to be taken away, me and Jacob would be put in CPS or foster care.
TUCHMAN (voice-over): His mom says the D.A. showed up at the police station, berated her as a bad parent and also threatened to separate the family.
J. BOATWRIGHT: I said, "If it's the money you want, you can have it. You can have it." If that's what it takes to keep my children with me and not separate them from us, take the money.
TUCHMAN: Amanee Busby was with her young child.
BUSBY: The first police officer who pulled us over would say things to me like, "Your son's going to Child Protective Services. He's going. He's going. You're not saying what we want you -- what we want to hear."
TUCHMAN: So, what's going on here? This attorney has filed a class action lawsuit on behalf of 150 drivers who were stopped at Highway 59.
DAVID GUILLORY, CLASS ACTION ATTORNEY: They're disproportionately going after racial minorities. And my take on the matter is that the police in Tenaha, Texas, were picking on and preying upon people that were least likely to fight back.
TUCHMAN: The cops in the county took their money, and yet none of them was ever charged criminally.
GUILLORY: I believe it's a shakedown. I believe it's a piracy operation.
TUCHMAN: Records show this town and county have made a lot of money doing this.
Under Texas law, police, in fact, are allowed to confiscate money and other property if it's believed to be used in a crime. But if the person is not charged or is found not guilty, the valuables must be returned. The lawsuit claims Tenaha and Shelby County often keep the money no matter what.
JOHN WHITMIRE, TEXAS STATE SENATOR: I was angry.
TUCHMAN: This Texas state senator is leading the fight to reform forfeiture laws, partly because he's shocked at what he's heard about in Tenaha.
WHITMIRE: To have law enforcement and the district attorney and the criminal justice system essentially be crooks, in my judgment, it should infuriate and does infuriate everyone.
TUCHMAN: The town has made many forfeiture arrests of people who really have been guilty of crimes. But when you include the alleged fraudulent arrests, roughly how much money has the tiny town taken in? The attorney has done some math.
GUILLORY: The amount is close to $3 million.
TUCHMAN: Three million dollars. So, what are they doing with that money? We found a $10,000 check from the D.A. directly to this man, the cop who pulled over most of these drivers. We had questions for him.
(on camera): We're doing a story about this guy, Roderick Daniels. He was pulled over here by you a year and a half ago. And you took his money and his jewelry. Do you recognize him?
UNIDENTIFIED MALE: I cannot comment.
TUCHMAN: And we had questions for the D.A. After avoiding us, we finally located her.
(MUSIC PLAYING)
We were surprised to find her on center stage.
(END VIDEOTAPE)
COLLINS: And Gary's struggles to reach that D.A. were not over. Stick around because there's more to this story, as well as more questions about where the money went, coming up right after the break.
(COMMERCIAL BREAK)
COLLINS: Authorities in a Texas town accused of blackmailing drivers, drivers who were never charged with any wrongdoing. A police officer and the county D.A. didn't seem very eager to talk to CNN about it, either. But our Gary Tuchman pressed on.
(BEGIN VIDEOTAPE)
TUCHMAN (voice-over): Many of the drivers pulled over on Highway 59 tell us they are guilty of one thing and one thing only: driving while black or Latino.
So, we didn't expect the cop who many are complaining about to be this man. His name is Barry Washington.
(on camera): It seems like you guys pull a lot of people over, though, and take their money and take their belongings, more than I've seen in any town before. What's your response to that?
BARRY WASHINGTON, TENAHA COUNTY POLICE: I cannot make a comment. This is on litigation. This is a lawsuit.
TUCHMAN: Well, I appreciate your courtesy to me.
WASHINGTON: Yes, sir.
TUCHMAN: But that's the story that we're doing, that it just seems like there's a propensity to do that.
WASHINGTON: I don't have anything to say to you right now. And I've told you that twice.
TUCHMAN: OK, well, if I could just ask you one final question.
WASHINGTON: You guys have a safe trip. Have a good day.
TUCHMAN (voice-over): The district attorney wasn't as easy to find. We made repeat visits to her office.
(on camera): We came here yesterday, and we asked if she would be in today, and we were told she would be in today.
UNIDENTIFIED FEMALE: I thought she was going to be, but she's not. That's all I can tell you.
TUCHMAN: But you can't tell me if she's on vacation or just not wanting to talk to us.
UNIDENTIFIED FEMALE: It's none of your business what she's doing.
TUCHMAN: Well, it is her business to the taxpayers pay her salary, so it really is her -- it really is the public's business, so, yes.
(voice-over): Ultimately they told us she would have no comment. So, we looked elsewhere for D.A. Lynda Russell.
(MUSIC PLAYING)
And we found her on stage belting out country tunes at a fire department fundraiser. We couldn't get near her until the event was over.
(on camera): Ms. Russell?
UNIDENTIFIED MALE: Guys...
TUCHMAN: Ms. Russell?
UNIDENTIFIED FEMALE: She doesn't care to speak to anybody.
TUCHMAN: Ms. Russell, my name is Gary Tuchman with CNN. I need to ask her. Ms. Russell...
UNIDENTIFIED MALE: She doesn't have anything to...
TUCHMAN: I need to ask her. Ms. Russell, I just want to see if you...
UNIDENTIFIED MALE: She doesn't want to talk to you.
TUCHMAN (voice-over): But we kept trying because we'd found out even more about her that raised serious questions. Texas law states that when money and valuables are legally taken from motorists charged with crimes, it can only be used for the official purposes of the D.A.'s office and for law enforcement purposes for police.
We acquired copies of hundreds of checks the district attorney wrote over the last two years, the entire account funded only with money the cops took from drivers they stopped on the highway. Official purposes?
The documents show the D.A. has given herself wide discretion on how she spends the forfeiture money. Here's a check and receipt for a popcorn machine and popcorn costing $524. Here's another one, $195 for a poultry festival. She bought Tootsie Pops, Dum-Dums and Dubble Bubble for the event. Here's one, 400 bucks for catering from Pete and Jennifer's BBQ.
More records show she made donations to clubs and organizations she seems to like, including the local Chamber of Commerce, youth baseball. Good causes, but official business?
(MUSIC PLAYING)
(on camera): According to the check registry from the District Attorney's Forfeiture Fund, at least two checks totaling $6,000 were given to this Baptist church in Tenaha.
(voice-over): But this one, this check, really stands out. This is the check the D.A. wrote for $10,000 and paid directly to police officer Barry Washington for what are described as investigative costs.
So, we wanted to give the D.A. a chance to explain why would she write such a huge check directly to a cop and why it seems the cops are targeting so many minority drivers.
UNIDENTIFIED MALE: But she doesn't want to speak to you, guys.
TUCHMAN (on camera): Sir, I'm not asking you. If she doesn't want to comment, she can tell me. She's the district attorney.
UNIDENTIFIED MALE: She doesn't even want to speak to you.
TUCHMAN: I know. I need to give her the opportunity. That's my job to get both sides of the story.
UNIDENTIFIED MALE: She knows that she has the opportunity. She doesn't care to speak to you.
TUCHMAN (voice-over): The D.A.'s personal attorneys did give CNN a general statement: "Ms. Russell has denied and continues to deny all substantive allegations set forth. She has used and continues to use prosecutorial discretion and is in compliance with the Texas law, the Texas constitution and the United States Constitution."
George Bowers has been mayor here for 54 years. The class action suit also names him.
GEORGE BOWERS, MAYOR, TENAHA, TEXAS: We try to hire the very best trained, to have all the training, and we keep them up to date on their training, you know, where they will follow the law.
TUCHMAN (on camera): So, you have faith that they've done the right thing?
BOWERS: That's right.
TUCHMAN: All the defendants in the lawsuit deny the allegations and say they follow the law.
The Hendersons and Amanee Busby spent a lot of money on attorneys and eventually got their seized cash back.
But Roderick Daniels, like scores of others who has been charged with nothing, is still out the $8,500 the cops took from him. For a husband and father of four, it's a lot to lose.
DANIELS: To this day, didn't understand why did they take my belongings off me.
TUCHMAN: Maybe he'll find out someday. From the cop...
WASHINGTON: This is all in litigation. We'll just have to see what happens in the courthouse.
TUCHMAN: ... or from the country singer...
(MUSIC PLAYING)
TUCHMAN: ... whose day job may be getting her in big trouble.
Gary Tuchman, CNN, Tenaha, Texas.
(END VIDEOTAPE)
COLLINS: Quickly now, more live pictures to show you from the State Department as we are awaiting the beginnings of the trilateral meeting. Secretary of State Hillary Clinton will be coming into that room alongside Afghan President Hamid Karzai and Pakistani President Asif Ali Zardari. So, we will keep our eye on those pictures for you and bring it to you when it happens.
(COMMERCIAL BREAK)
COLLINS: Do you have a gas guzzler that you'd like to trade in for a more fuel-efficient car? Well the government could help you foot the bill. CNNmoney.com's Poppy Harlow has our "Energy Fix" now this morning. Hi, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, Heidi. Well, this is an update on a story we brought you a few weeks ago, the "cash for clunkers" idea. What we know now, news coming out late yesterday that the Obama administration is signaling its support for a deal that has been reached by House Democrats. It's part of the larger energy bill we hear so much about.
Leaders hope they're going to pass that before Memorial Day. Under this "cash for clunkers" deal, basically, if your old car gets 18 miles per gallon or less, what you would able to do is get some pretty significant government vouchers towards a new, more fuel- efficient one.
There are the details. The vouchers range from $3,500 to $4,500, depending on how fuel-efficient that new vehicle would be. And this is key, unlike the previous proposal, Heidi, this includes foreign and U.S.-made models. So, this could be a big help for people looking for new cars -- Heidi.
COLLINS: Yes, but there are some environmentalists who aren't exactly thrilled with this idea, right?
HARLOW: It's exactly right because they argue that the fuel economy requirements are not strict enough to qualify for that $3,500 voucher, Heidi. The car only has to get 22 miles a gallon. That's less than the original bill. Environmentalists would like to see that higher. And a big question is, is this enough? Is this enough money to lure in potential buyers in the midst of a very deep recession? We headed outside the office yesterday to ask some people. Take a listen to what they told us.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: My old car's about eight years old, and it would definitely help me out to have a new car.
UNIDENTIFIED MALE: Her car's about to die. And if we could trade it in for anything, we'd take it, I think.
UNIDENTIFIED MALE: If it's something that's going to get high- emission vehicles off the road, then it's something that I think is valuable. But if it's just in an effort to stimulate car sales, I have a bit of an issue with it.
UNIDENTIFIED MALE: I think it's a bad use of taxpayers' money.
(END VIDEO CLIP)
HARLOW: All right, one last point here. The program, Heidi, would be authorized for just one year up to 1 million vehicles. No official price tag, but if you average $4,000 vouchers times a million, it's 4 billion bucks, Heidi. So, it could be expensive.
COLLINS: All right. We'll keep our eye on that one. Thanks. Poppy Harlow for us today.
HARLOW: Sure.
COLLINS: Quickly, right now, we want to go ahead and get to Secretary of State Hillary Clinton at the State Department. We've been telling you about these meetings that she's been having with the leaders of Pakistan and Afghanistan. So, here you go.
