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Military Investigating Circumstances Behind Soldier's Rampage; Judiciary Committee Examines Bush Administration Interrogation Tactics; Obama, Congressional Leaders Meet on Health Care Reform; Senate Committee Seeks Carter's Energy Advice; Citigroup Chairman Wants Market to Regulate Exec Pay; College Grads Worldwide Face Tough Job Market; Family of Soldier Murdered in Rampage Speaks

Aired May 13, 2009 - 10:00   ET

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

(COMMERCIAL BREAK)

HEIDI COLLINS, CNN ANCHOR: We are watching what's happening on Capitol Hill right now. The Senate Judiciary Committee hearing testimony about torture today. They're looking into the Bush administration's detention and interrogation policies. A former top FBI investigator is among the witnesses.

AIG's CEO appearing today in front of the House oversight committee. He is expected to talk about bonuses given to employees, and the money they got in the bailout.

Also, the National Transportation Safety Board, starting the second day now of testimony looking at a fatal commuter plane crash in Buffalo. Testimony yesterday centered on the pilot.

Now to another major story that we're following in the NEWSROOM. The impact from the killings at Camp Liberty in Baghdad. The Army is investigating the case against Sergeant John Russell, who is charged with killing five fellow troop members.

Our Barbara Starr is looking into that at the Pentagon. We'll talk with her in just a moment. But first, we're getting reaction from the family of the suspect. CNN's Ed Lavandera visited Sergeant John Russell's hometown of Sherman, Texas. He talked with Russell's father and son. His father says Russell feared officers were trying to run him out of the military with the dishonorable discharge five years before his retirement.

(BEGIN CLIP)

WILBURN RUSSELL, FATHER OF SGT. JOHN RUSSELL: They overstressed him. They broke him. They ruined his life. They told him, you're an idiot. You don't belong in here, we're going to break you. We're going to get you out of here.

ED LAVANDERA (on camera): That's what other Army officers were telling him?

RUSSELL: No, that's what stress test technicians were telling him. They just follow orders. I don't know if they had a psychologist in the room with him. They probably had one in charge of it. But he probably made up the repertory they punished him with. He wasn't there to intercede, and he didn't make any effort whatsoever to put him back together.

JOHN RUSSELL, SON OF SGT. JOHN RUSSELL: I think that they just got to him. And he just couldn't take it. And I don't know, you know, a whole lot about it. But it's not him that did something like that. It's not subconsciously. Something in his mind just went off and he just had no control over it is what I think.

(END VIDEO CLIP)

COLLINS: So, how did this shocking case unfold? And how can the military prevent something as tragic as this from happening again? Parallel investigations are being launched to answer those questions. Our Barbara Starr at the Pentagon now with that part of the story. Barbara, good morning to you once again.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning, Heidi. Well, five military families, of course, now mourning the loss of their loved ones. This case is very tragic. Sergeant John Russell now charged with five counts of murder at that mental health clinic in Baghdad. Clearly someone who was suffering from some very serious problems. And that alone has caused massive concern across the U.S. military starting right from the top.

Defense Secretary Bob Gates saying he is very concerned about this. How it could have possibly happened, and how to prevent it from happening again. There are two parallel investigations. A criminal investigation into the allegations of murder against Sergeant Russell, exactly what transpired, gathering the evidence, and proceeding down that military justice path.

But at the same time, there is a fact-finding investigation inside the U.S. military. Again, how did it happen? How was it that his gun was taken away that he came into possession of another weapon? Who knew that he was in this poor mental shape? What possibly could have been done to take him off the line to keep this from happening? These are the kinds of questions they're looking at.

And in a case as serious as this, this has much wider implications, of course, for the entire issue of post-traumatic stress, the number of tours that these soldiers are doing year after year, and with the cumulative effect of this combat stress is on them -- Heidi.

COLLINS: No question about it, excellent point. All right. Barbara Starr, we will continue to follow that story, of course. Thanks so much, live from the Pentagon this morning.

Death or life in prison. An ex-G.I. still waiting to learn his fate after he brutally killed a family in Iraq. Last week a civilian jury in Kentucky convicted former Pfc. Steven Green of raping and killing a teenage girl and fatally shooting her family. CNN's Deborah Feyerick reports.

(BEGIN VIDEOTAPE) DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Private First Class Steven Green had been in Iraq for four months and saw atrocities most 21-year-olds, if they're lucky, never see. Green, now 24, faces the death penalty for atrocities he committed. His lawyers say the death of two respected unit commanders drove Green to the edge.

In a testimony, Green's unit sergeant, Eric Lauzier said that's what broke Steven Green and sent him to the combat stress unit. A psychiatric nurse practitioner from a combat stress team evaluated Green, gave him sleeping pills and returned him to combat, what Green's sergeant calls the military equivalent of fixing a flat when it's the truck that's broken.

The facts of the case are not in dispute. On March 12th, 2006, Green, along with three other soldiers, donned black clothing and masks and walked 300 yards from their checkpoints to the home of the Janabi family. There, witnesses say, Steven Green shepherded the parents and their young daughter into a bedroom and shot them point- blank with an AK-47, while the 14-year-old daughter, Abeer (ph), was being raped in the other room.

Court documents say Green joined the others in the rape and afterward shot Abeer Al-Janabi (ph) three times in the head. Her body was set ablaze to hide evidence of the rape. In his opening, the defense lawyer never asked the jury to find Green not guilty, but instead seemed to lay the groundwork for a verdict that may spare his client's life, life in prison, not the death penalty the prosecutors seek.

(on camera): The nurse practitioner testified troops were often were told it was normal to have those (INAUDIBLE) feelings in combat and that it was important to keep troops together, not only to keep the numbers up, but so as not to separate them and make it appear if one was having problems.

Deborah Feyerick, CNN, Paducah, Kentucky.

(END VIDEOTAPE)

COLLINS: So, how does the U.S. military handle the stress of war? Defense Secretary Robert Gates is at a Pentagon budget hearing on Capitol Hill this hour. He may get some questions about post- traumatic stress disorder. Is the military doing enough to handle stressed-out troops on and off the battlefield? We are following that hearing, and of course we'll bring you any updates.

The U.S. military is disputing a claim they may be responsible for the deaths of as many as 95 children in Afghanistan. An Afghan official tells the Associated Press that the children were killed in fighting between U.S. forces and Taliban fighters in Farah Province. U.S. officials say the Taliban kept villagers hostage during the fight.

An ultimatum from the Taliban in Pakistan. They are giving government leaders in the disputed Swat Valley three days to resign. The threat comes in the middle of a growing offensive launched by Pakistan's military. Hundreds of thousands of civilians have been forced from their homes by the fighting.

Right now, the Senate Judiciary Committee starting hearings on the interrogation tactics under the Bush administration. These are the first hearings on the subject since interrogation memos were released last month. CNN's senior congressional correspondent, Dana Bash, joining us now live from Capitol Hill this morning. So, Dana, who is testifying? And what are we going to hear? What are we hoping to get out of these hearings?

DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Well, there are two star witnesses that Democrats think will give some important information. First is a former FBI agent who was involved in interrogating -- actually firsthand. He interrogated terror suspects. And he is going to argue that he was able to get very important actionable information, actionable intelligence without using harsh interrogation methods.

And he's going to essentially directly contradict what we've heard from former Vice President Dick Cheney that you need to use things like waterboarding to get critical information, which he's going to say is no. He believes that those tactics actually backfired.

And what's interesting is that this former FBI agent, Ali Soufan, he is going to testify behind a curtain or a wall. The senators have agreed to actually black out his identity because he was a former operative or actually he was infiltrated in al Qaeda, and they are worried about some viable threats against him.

Heidi, the second person is also going to be very interesting. And that is Phillip Zelikow. He is a former aide to Condoleezza Rice during the Bush administration. And he, while serving in the Bush administration, wrote a memo saying he believed that these extreme tactics are not only illegal, but actually they don't help. And he's going to say, look, I tried to make that argument, and not only was I not listened to and ignored, Bush officials actually tried to destroy all copies of the memo that he wrote -- Heidi.

COLLINS: You mentioned the FBI agent saying he helped prevent a terrorist attack without using harsh tactics. Can you give us an example?

BASH: Yes, we have some advance testimony that he is going to give here. And one interesting example that he is going to give is after Abu Zabada, the al Qaeda terrorist operative -- after he was captured, he -- this former FBI agent actually went to him, and he's going to claim that within the first hour of interrogating Abu Zabada, he got actionable intelligence.

Not only that, he's also going to argue that eventually he was able to get some critical information about Jose Padilla. He is somebody who, that our viewers probably remember who was originally thought to be a mastermind of the dirty plot bomb, and eventually he was actually convicted of at least cooperating with terrorists. So, that is something that he is going to give in terms of an anecdote of something that he is directly involved and that he believes he was able to get without using things like waterboarding.

COLLINS: Sounds to me, Dana, that there are a whole lot of politics that are also involved in this hearing.

BASH: You said it. These are Democrats who control Congress, Democrats who control this particular hearing. And what they have done is, they have called at least a couple of witnesses here who will speak to and back up their arguments. And their basic argument is that waterboarding, that enhanced interrogation methods that they do not work, and that you can get very important critical information from terror suspects without using these. And that is the goal here.

We do have some Republicans on the panel who are likely going to try to raise some other issues. But there's no question that this is intended to back up that claim. And of course, that's important to note is something that the Obama administration agrees with. And that's why have ruled out using these methods -- Heidi.

COLLINS: All right. Our congressional correspondent Dana Bash. We'll be watching those hearings. Thanks so much, Dana.

BASH: Thank you.

COLLINS: AIG took $182 billion of your tax money to stay afloat. Right now, the company's top executives have to lay out a plan to pay it back. CEO Edward Liddy going before a House committee this hour as the government bailed out AIG saying it was too big to fail. The company nearly went under because of risky derivatives trading.

Let's go ahead and look at that Big Board right next to that hearing. Dow Jones industrial average is down about 131 points at this time, resting at 8339. So, of course, we will be watching those numbers all day as usual right here in the CNN NEWSROOM.

Now, if the big banks won't lend, maybe the smaller ones will. That's the idea that Treasury Secretary Timothy Geithner is pushing at a convention for independent community bankers this morning. Smaller banks have less of those toxic assets than big banks, of course, but they are also getting demands for tougher lending rules.

We're waiting for remarks by President Obama this morning. He's expected to speak after wrapping up a meeting with House Democrats. House Speaker Nancy Pelosi as well as the leaders of several influential house committees are there.

And later this morning, the president welcomes top senators to the White House including ranking members of the Senate Judiciary Committee. They are expected to discuss the confirmation process for the as yet unnamed new Supreme Court nominee. We'll watch all of those for you.

But happening right now in Washington. A hearing on that commuter plane crash that killed 50 people near Buffalo, New York, last February. We got new details from just moments before the crash.

(COMMERCIAL BREAK) COLLINS: The National Transportation Safety Board looking for answers as to why Continental Flight 3407 crashed into a home near Buffalo last February killing 50 people. The second day of public hearings on the crash happening right now in Washington. This day focused on pilot training and crew fatigue.

As the hearings go on, we are getting new details about the crash. CNN's Randi Kaye has the story.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): As Continental Connection Flight 3407 tumbled to the ground near Buffalo, New York, panic in the cockpit. According to a transcript just released from the plane's voice recorder, pilot Marvin Renslow bursts out "Jesus Christ" and "we're down." First officer Rebecca Shaw starts to say something but is cut short by her own scream.

Disturbing details as federal investigators gather in Washington this week to figure out what went wrong.

(on camera): Here's what we know. At 10:16 p.m. February 12th, the landing gear was down, but the plane's speed had dropped to a dangerously low level. To avoid a stall, an emergency system kicked in, known as a stick pusher. That sent the plane into a temporary dive, which is supposed to help it regain speed. Investigators believe Captain Renslow tried to override the system, what experts say may have been a fatal mistake.

WALLY WARNER, CHIEF TEST PIOLOT, BOMBARDIER: Obviously the initial reaction to the stall warning was incorrect. And that set the course of action for what followed.

KAYE (on camera): The government's animation shows when the pilot pulled back on the controls to lift the plane up instead of letting it dive forward to regain speed, the plane rolled left then right. In fact, it was practically on its back before rolling left again. It continued to stall. Finally, it flipped over and crashed.

(voice-over): Perhaps most shocking, new details about pilot Renslow's lack of training. Colgan Air, which operated the flight, acknowledge the pilot had never trained in a flight simulator with the emergency system that activated on board.

UNIDENTIFIED MALE: Do you know of any stick training or stick pusher training that was done in the actual Q-400?

UNIDENTIFIED MALE: In the simulator, no. In the ground school portion, it is covered.

KAYE: It turns out the FAA does not require such hands-on training.

UNIDENTIFIED MALE: Do you believe this was a recoverable stall?

UNIDENTIFIED MALE: My opinion is yes. KAYE: And there's more. Captain Renslow had just 110 flying hours in the Q-400 turboprop. Colgan Air says the captain was fully qualified but had failed five training tests. Margie Brandquist's sister died in the crash.

MARGIE BRANDQUIST, PLANE CRASH VICTIM'S SISTER: We put our lives in the hands of the people that we assume that the FAA is and the airlines are properly training.

KAYE: Training to deal with all kinds of emergencies, even ice, which was a concern for the co-pilot. The government's report shows minutes before the plane hit the ground, she expressed her fear of flying in icy conditions, fear it could cause a crash.

In this crash, it may not have been ice at all, but something aviation investigators seem to believe was much more avoidable: lack of experience. Randi Kaye, CNN, New York.

(END VIDEOTAPE)

COLLINS: I want to get over to Jacqui Jeras, standing by in the severe weather center today. Because as we've been saying, the central part of the country really getting ready to get hammered today.

(WEATHER REPORT)

COLLINS: I'm so sorry, Jacqui...

JACQUI JERAS, AMS METEOROLOGIST: Sure.

COLLINS: ... but we've got to get to the White House. We've been telling our viewers that we wanted to hear from President Barack Obama today. He's just come out of a meeting regarding health care. Let's go ahead and go to him now live.

(JOINED IN PROGRESS)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ... with the chairman of the relevant committees, as well as the majority leader and Vice President Biden to discuss one of the key pillars of a new foundation for our economy. And that is affordable, accessible, high- quality health care for all Americans.

I want to take a moment before I start talking about health care just to congratulate Chairman Waxman. And to the energy and commerce committee Democrats who have made such extraordinary progress in reaching a deal on comprehensive energy reform and climate legislation.

This is a major step forward in building the kind of clean energy economy that will reduce America's dependence on foreign oil and I once again call on Congress to send me legislation that places a market-based cap on carbon pollution, which will then drive incent (ph) to the kind of innovation and the dynamic new clean energy economy that can create jobs and new businesses all across America. So, this is an example of the extraordinary productivity that we're seeing over in the House right now. On health care, as Speaker Pelosi just mentioned, the House is working to pass a comprehensive health care reform bill by July 31st, before they head out for the August recess. And that's the kind of urgency and determination that we need to achieve what I believe will be historic legislation.

As I've said before, and as all Americans know, our health care system is broken. It's unsustainable for families, for businesses. It is unsustainable for the federal government and state governments. We've had a lot of discussions in this town about deficits. And people across the political spectrum like to throw barbs back and forth about debt and deficits.

The fact of the matter is, the most significant driver by far of our long-term debt and our long-term deficits is ever escalating health care costs. And if we don't reform how health care is delivered in this country, then we are not going to be able to get a handle on that. Now, in addition to the implications for the federal budget.

Obviously, we're also thinking about the millions of American families out there who are struggling to pay premiums that have doubled over the last decade, rising four times the rate of their wages and 46 million Americans who don't have any health insurance at all.

Businesses are using money to pay their rising health care costs that could be going to innovation and growth and new hiring, far too many small businesses are dropping health care altogether. In fact, you've got small business owners who can't afford health care for themselves, much less for their employees. And as we learned yesterday, pressures on Medicare are growing, which only underscores the need for reform. That's why we've got to get this done. We've got to get it done this year. We've got to get it done this year. Both in the House and in the Senate.

And we don't have any excuses. The stars are aligned. The problems in our health care system didn't emerge overnight. We debated about what to do about them for decades, but too often efforts at comprehensive reform have fallen apart due to special interest lobbying and petty politics and the failure of all sides to come together.

What's been so encouraging this week is you're starting to see a shift in these patterns. On Monday I met with representatives of the insurance and the drug companies, doctors and hospitals and labor unions, groups that included some of the strongest critics of past comprehensive reform proposals. We discussed how they're pledging to do their part, to reduce our nation's health care spending by 1.5 percent per year. Coupled with comprehensive reform, this could result in our nation saving over $2 trillion over the next 10 years, and that could save families $2,500 in the coming years, $2,500 per family.

Yesterday I met with CEOs from some of America's leading corporations who are finding innovative ways to cut their own health care costs by improving the health of their workers through prevention and wellness programs. In the coming weeks and months, I believe that the House and Senate will be engaged in a difficult issue. And I'm committed to building a transparent process to get this moving. But whatever plans emerge both from the House and the Senate, I do believe they've got to uphold three basic principles.

First, that the rising cost of health care has to be brought down. Second, that Americans have to be able to choose their own doctor and their own plan, and third, all Americans have to have quality, affordable health care. These are the principles to which I'm committed. These are the principles to which the chairman and the speaker and the majority leader, my vice president are committed.

We're seeing now that traditional opponents of health care reform are embracing these ideas. They recognize that the time is now. And so I am just deeply encouraged. And I want the message to go out all across America. We are not going to rest until we've delivered the kind of health care reform that's going to bring down costs for families and improve quality, affordability, accessibility for all Americans. So, thank you very much. And enjoy this wonderful weather.

REP. NANCY PELOSI (D-CA), SPEAKER OF THE HOUSE: Mr. President, can I say something, because you talked about what happened this week. But I think it's important to note that under your leadership, since you became president, whether it was signing and taking the lead on the SCHIP, the children's health insurance, the health I.T. is in the recovery package, other legislation as we have gone along.

You and under your leadership and working with this Congress have done more to promote health care, to move it along, prevention, technology, biomedical research, children's health, veterans' health than has been done in our country since Medicare was established in the '50s. So, already you have a remarkable record. We're down the path. We're going to get the job done. But I thank you for the leadership you have provided already this year.

OBAMA: Thank you, everybody.

COLLINS: All right. House Speaker Nancy Pelosi nuzzling in there at the end of the press conference by President Barack Obama surrounded by senior leaders, talking about a variety of topics. There was a meeting this morning. And most significantly mentioning this about a comprehensive health care plan that he says will be in place by July 31st. That is before Congress goes on recess. So, of course, we will be watching for all of that. And a larger breakdown, more comprehensive breakdown, as well of what exactly that will look like. We'll be back in a moment, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: It's been more than 30 years since President Jimmy Carter called the nation's fight for energy independence the moral equivalent of war. Yesterday, the Senate Foreign Relations Committee asked the man who founded the Department of Energy for his advice on our current energy problems. What did the 39th U.S. president have to say besides "I told you so"?

CNNmoney.com's Poppy Harlow has our "Energy Fix" from New York. Hi, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hi, Heidi. Yes, President Carter basically saying hindsight is 20/20. He warned about a lot of issues that we're facing right now. It was a rare sight, only the fifth former U.S. president to testify to a Senate committee. There you see him.

President Jimmy Carter yesterday telling lawmakers about the economic, the environmental and the national security imperative for energy independence in this country. He recounted the struggles that he faced as president trying to make energy a top priority during his administration. Take a listen.

(BEGIN VIDEO CLIP)

JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: At that time, we were importing 50 percent of consumed oil, almost 9 million barrels per day. And we were the only industrialized nation that did not have a comprehensive energy policy.

(END VIDEO CLIP)

HARLOW: Well, President Carter went on, Heidi, to remind the committee of the energy fixes that he proposed more than 30 years ago when he founded the Department of Energy. He famously asked Americans to turn down their thermostats, wear sweaters instead. He even installed -- I had no idea this happened -- 32 solar panels, Heidi, on the roof of the White House.

COLLINS: Really?

HARLOW: He did.

COLLINS: All right, well...

HARLOW: They're not there anymore. I'll tell you why in a second.

COLLINS: Well, exactly. What happened to some of those plans? I mean, how did he actually propose today's lawmakers might get back on track with energy policies?

HARLOW: Right, and it's interesting timing because right now, Congress is debating this broad-reaching legislation. Thirty years ago, our President Carter had a hard time getting these bills through the Senate, something that he blames in part on the automobile lobby. He ultimately lost his re-election bid in 1980 to Ronald Reagan, who did not see energy independence as a priority. Listen to what Carter said on that front.

(BEGIN VIDEO CLIP)

CARTER: The 32 panels were soon removed, almost instantaneously after my successor moved into the White House, with assurances to the American people that such drastic action would no longer be necessary.

(END VIDEO CLIP)

HARLOW: All right. So, Ronald Reagan took them off of the roof. President Carter yesterday, Heidi, warning there's been a long period of energy complacency, saying what Congress needs right now is a comprehensive new plan.

He did give President Obama, Heidi, a lot of credit, saying he's doing a better job than President Carter says he did in terms of communicating the importance of energy independence to the American people. Should note, Heidi, now where we stand 30 years later, more Republicans in the Senate willing to support action on the energy front than Carter had during his administration -- Heidi.

COLLINS: All right. Thanks so much. Poppy Harlow, our "Energy Fix" for today.

Executive pay once again a big focus. AIG officials are set to testify on that and other issues this hour on Capitol Hill. The crippled insurance giant came under heavy criticism in March after paying $165 million in bonuses to employees at the unit that was blamed for the company's near collapse.

But the chairman of another company that received billions in bailout money saying curbing Wall Street compensation would be a mistake. Susan Lisovicz at the New York Stock Exchange now with details from her exclusive interview with the chairman of Citigroup.

Hi, Susan. Very interested in what he had to say.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Very timely, that's for sure. No question about it. Dick Parsons says despite receiving $45 billion from TARP, the government has largely left the running of Citigroup to Citigroup. The big exception is executive compensation. But he told me it would be a mistake to regulate Wall Street pay.

(BEGIN VIDEO CLIP)

RICHARD PARSONS, CHAIRMAN, CITIGROUP: Too much regulation in that space I think is going to be pernicious. I just don't see -- I can understand how people will feel better in the short term about, well, we got those guys. But in the long term, it's going to disadvantage our system on a global basis as against the rest of the world. Not a smart thing to do, in my judgment.

(END VIDEO CLIP)

LISOVICZ: Parsons says he believes Citigroup has stabilized and that the company will pay back every penny of TARP with interest. Citigroup shares, by the way, Heidi, are trading at $3.50 today. But that's a big rebound from when it broke a buck earlier this year. The Dow industrials, by the way, are to the downside as with Citi's banking stocks in general, and the Nasdaq composite. We've seen a big slide today -- Heidi. COLLINS: Yes. Why does Parsons think, though, that Wall Street pay shouldn't be reigned in? Where is this talent going to go?

LISOVICZ: Well, it's very interesting. You know, Dick Parsons, as you and I know, used to run Time Warner, the parent company of CNN. It has a large business in entertainment. So, you can see he's quite familiar with debate about what talent is worth.

And he said in this case the market should decide. Why is that? Because even if the Obama administration reigned in pay at the financial industry in the U.S. across the board, you still have a global financial industry. Right here on Wall Street, you have Barclays of the U.K., you have Deutsche Bank from Germany, you have BNP Paribas from France.

I mean, it's a global industry. And they're not going to be reigned in. And the top talent will be cherry-picked. There's no question about it. And that's why he thinks it's far better for the market to decide. You can debate it all you want, but it's better if the market runs it in this particular area.

COLLINS: All right. Very interesting. Our Susan Lisovicz at the New York Stock Exchange. Thank you, Susan.

LISOVICZ: You're welcome.

COLLINS: Here's to the Class of '09. These students have worked hard for their degrees, but many are finding school was the easy part.

(COMMERCIAL BREAK)

COLLINS: In just a few minutes, Secretary of State Hillary Clinton will speak at the graduation ceremony at NYU or for NYU, I should say, because it's not taking place there. Meanwhile, CNN's Richard Roth is where it's all happening right now, talking to graduates about their future. So, this is the new Yankee Stadium, yes?

RICHARD ROTH, CNN CORRESPONDENT: Yes, we're here at Yankee Stadium. The graduates' job prospects perhaps as bleak as the Yankees' performance so far this season. We've talked to many graduates this morning. And there is some optimism, though they know it's going to be pretty hard. So, here's a sense of two different moods outside the stadium on graduation day for NYU.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Some of us have been interviewing multiple times a week, and there's nothing out there.

ROTH: Did you think you would have a job when you graduated?

UNIDENTIFIED MALE: When I first started school, yes. Five months ago, no.

ROTH: What kind of -- are you lowering your sights on what you'd accept?

UNIDENTIFIED MALE: Definitely.

ROTH: What are you now going to accept?

UNIDENTIFIED MALE: Anything that pays.

ROTH: (INAUDIBLE) graduation day?

UNIDENTIFIED MALE: You know what I learned? I think the economy is -- this recession is a self-fulfilling prophesy. And if there's one thing I learned in college, keep a good attitude, anything's possible. It's a happy day today, and I'm positive about the future.

(END VIDEO CLIP)

ROTH: We were here last year, and chances for jobs in business seemed OK. But then the real recession crunch hit. Lanetta Darlington is here with me. You were a business major. What are your thoughts now on trying to get a job?

LANETTA DARLINGTON, NYU GRADUATE: I'm just trying my best. Right now, I guess, I'm putting off the inevitable, trying to get a job. You know, it's all these employees coming off who are being laid off, giving me competition now. So, in August, I'll just try to sit for my CPA and make me more marketable to the workforce. So, I'm hoping for the best.

ROTH: Graduation day is supposed to be a happy day. Are you thinking about it? Or is it just an annoying reporter reminding you of that as you'll sit and watch Secretary of State Clinton and the graduation ceremony?

DARLINGTON: I'm excited. I've waited four years for this. Why not bask in the glow of it all? I'm excited.

ROTH: Do you think there's anyone to really blame for what happened, that your job prospects for what happened? And you're a business student. Tell me what happened?

DARLINGTON: I'm not blaming anyone, I'm trying to make the best of it. And hopefully I'll get a job soon.

ROTH: All right. Thank you very much. It's Lanetta Darlington, business student, four years at NYU. And it's not cheap at NYU. I also went there, in full disclosure -- Heidi.

COLLINS: Understood. Your alma mater. All right, like her attitude, that's for sure. Richard Roth outside of NYU's graduation, new Yankee Stadium there. Thank you, Richard.

Imagine the president of the United States, rocker Alice Cooper and a mariachi band or two, all on the same stage. It's set to happen tonight at Arizona State University. Nine thousand graduates and more than 50,000 proud parents, friends and security forces also expected. With a degree in hand, the next step, getting a job. Of course, not too easy, as we've been saying these days. In almost any country, in fact. Here's a look at what we found in China, Spain and India. First to CNN's Emily Chang in Beijing.

(BEGIN VIDEOTAPE)

EMILY CHANG, CNN CORRESPONDENT: Need a job, any job? Well, welcome to China's latest job fair only for recent graduates. There are some 50 companies here from I.T. to food service, sales and counseling. But how many job offers is anyone's guess.

There are certainly a lot of applicants. It's estimated at least 1.5 million graduates in China are unemployed. Many of them with advanced degrees and stellar qualification. In fact, the unemployment rate among college graduates is 12 percent, three times the overall urban unemployment rate of 4.3 percent.

And China says 6 million new graduates will be attempting to enter the workforce this year. And finding them jobs in the midst of the economic crisis is one of the government's top priorities.

AL GOODMAN, CNN CORRESPONDENT: I'm Al Goodman with Jose Miguel Penas, who's one of 3,000 seniors who will be graduating from this campus, the University of Alcala, just east of Madrid. But Spain has 17 percent unemployment, the highest rate in the European Union. How are you going to get a job, Jose Miguel?

JOSE MIGUEL PENAS, RECENT COLLEGE GRADUATE: Impossible. Now here in Spain, it's impossible because it's very disappointing to see through all the street, and you see there is for rent and no job. You can see the newspapers. The newspapers are only problems, economic problems. There is no job expectations for a student of (INAUDIBLE) degree, which is my case.

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT: I'm Sara Sidner in New Delhi, India, where graduates in this country are finding it pretty difficult to land a job, especially those with the ever-popular MBA. According to the latest study by an Indian-based Web site, MBA Universe, the 2009 economic downturn has hit business grads very, very hard. And their prospects of finding a job are about as dismal as their counterparts in the U.S.

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COLLINS: Well, you probably never confused Cheerios with Tylenol, but the Food and Drug Administration is now calling this cereal an unapproved drug. It has to do with claims on the box that Cheerios can cut cholesterol and lower the risk of heart disease. The FDA says only drugs, if proved, can make claims like that. It fired off a letter to General Mills, which downplayed this as a language issue.

Groundbreaking surgery performed on a man in Oregon has given a man his sight back after he spent almost 17 years in the dark. He lost his sight in 1992 when a chemical accident caused charring (ph) in his eyes. After numerous surgeries failed, doctors at the Legacy Good Samaritan Hospital fitted him with the first artificial corneal transplant in Oregon.

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ED PARTYKA, CORNEAL TRANSPLANT PATIENT: I always had to wait for some results with the other stuff. And then by the time you waited, you went into some failure or whatever. So, that was disappointing. I didn't get my hopes all up, but I mean, I was anticipating, and this is what I kind of thought. Because she explained everything to me that, you know, what was going to take place. Just needed to happen. And, yes, it's marvelous.

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COLLINS: Doctors say he went from being legally blind to having 20/50 vision in the eye they operated on in just 24 hours.

A legal fight over human genes. The ACLU and others suing the government over the practice of granting patents on genes, specifically for granting a private company a patent on two genes linked to breast and ovarian cancer. The ACLU argues the patent holder has a monopoly over the genes, and that can prevent anyone else from studying, testing or even looking at them. They contend that is unconstitutional and hinders research for a cancer cure.

A soldier in Iraq accused of killing his fellow troops. Family members of one of the victims spoke out just a few moments ago. We'll bring it to you next.

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COLLINS: Family members of one of the victims killed at Camp Liberty in Baghdad sharing their feelings this morning. Sergeant John Russell is charged in the deaths of five troops. The families are overcome, as you might imagine. Hear with me now from the family of Michael Edward Yates Jr.

MICHAEL YATES, FATHER OF PFC MICHAEL EDWARD YATES JR.: Our son, he wanted to serve his country, just like the rest of the armed forces. We have quite a few people that went to school with him. We have quite a few people in the family that have served the country. We want to honor the people. Our sign says most of what we feel.

He's going to be missed. He was a good man. Good father. He took care of his responsibilities. He was very honorable. He was a good son. He treated everybody with respect, and he just wanted respect back.

We're not sure as to what happened over there. We do know that he was at the stress clinic just like quite a few other military people. They've all dealt with the stress the best way they could. He was due to go back to his unit today until this unfortunate event.

I don't know much about the guy that did this. He was probably under a lot of stress, as well, quite a bit more from my understanding. He has friends and family, extended families that will miss him dearly. If you have questions, and you want me to answer them, I'll be more than happy to try to answer them for you.

QUESTION: Did he mention Sergeant Russell?

YATES: Yes, he did. In a conversation with my wife on Mother's Day, he said that he had met a sergeant that was, in his words, he was a very nice guy, he could deal with him, but he had some major issues. He was out there on the branch hoping for somebody to help him.

There wasn't a lot of conversation about him, but there was a comment about him because he respected his -- the upper echelon of the command. He was home on leave in April, and he made mention about some of the stuff that was going on over there, a lot of stuff that the public doesn't know.

I don't want to make this a bashing session with the government. Some of the stuff that he said, I don't really believe should be happening. You're taking a 19-year-old boy, turning him into a man, teaching him how to kill people. You know, we have a range of anywhere between what 18 and 50 something years old over there. Some know what they're doing, some don't know what they're doing, but they're doing the best that they can to protect our way of life.

QUESTION: From his Web site, Michael seemed like mighty proud of the Army and being in the Army.

YATES: He was...

SHAWNA MACHLINKSI, YATES'S MOTHER: He was...

QUESTION: (INAUDIBLE)

MACHLINKSI: He was until two weeks ago. He was until he went back there. When he came home from leave, and he went back, he got stuck, basically, stuck waiting to get from the airport to his base. And he was stuck for eight days. And in those eight days, he, you know, went through a lot of thoughts (INAUDIBLE) about what he didn't do at home.

And things started to bother him, and he started to think about what he had to do as part of his job. And I think it bothered him. And he asked them every day, you know, when are you going to get me back to my base? I need to get back with my military family. And it took them eight days to get him from a base in Baghdad to his base where he was stationed (INAUDIBLE).

And that was also very hard for him because he had nobody to go to, no one to turn to. So that -- in that week he really started on -- just going through a lot of emotions. And when he went back, he said, I need help dealing with this. And his alternative was to go to this program to help him not be so stressed out and not be so upset about the things that he had to do and things that he had to see.

QUESTION: Could you tell us about your...

QUESTION: How long was the conversation you had with him on Sunday?

MACHLINKSI: It was pretty brief. He called to say happy Mother's Day, and he thought the clinic that he was at was kind of stupid because he had to color and do arts and crafts and cut and paste. And he just thought that was gay. I mean, that's what he said, it was kind of gay.

But he knew that he had to finish the program, which would be over on Wednesday, in order for him to get back to his base and not have any bad marks because he quit the program. Because it was a voluntary program.

YATES: He was one of the lucky ones that understood that he need help. He was very proud. I mean, a lot of people would call him hard-headed, stubborn, and everything else. But he knew what he wanted out of life. And in today's society, that's kind of difficult to come by.

There's a lot of young people out here who don't know what they want to do. He was proud of what he was doing. He wasn't hiding. He never, you know, he never downed -- up until the last two weeks, he didn't down the Army in any way, shape or form. He was proud to carry his badge and his honor for the whole world to see.

QUESTION: I gather you have conflicted emotions about Sergeant Russell?

MACHLINKSI: I do. Yes.

QUESTION: Being in the same boat.

YATES: Yes.

MACHLINKSI: I think he needed help and couldn't get it fast enough because you have to wait on everything with the Army. You do.

YATES: The military is always a hurry up and wait.

MACHLINKSI: As much as I have a lot of anger towards him, I also have some sympathy because I know he must have been going through a lot, as well. That doesn't excuse the fact that he murdered my son, but I believe that if he would've gotten the help that he was there to get...

COLLINS: The family members of Private First Class Michael Edward Yates Jr., one of the victims in the horrible shooting and tragedy that happened at that stress clinic at Camp Liberty in Baghdad. Really, really tough press conference there, as you can see. His father and mother and the rest of his family. We do know that Michael Yates was also a father of a 1-year-old son. His family continues to reflect on their great loss.

I'm Heidi Collins. CNN NEWSROOM continues now with Tony Harris right after a quick break.

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