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Banks Hike Checking Fees, Penalties; Obama Administration Focuses on Israeli Settlements; Apathy Greets Hurricane Season; GM's Road to Bankruptcy; North Korea Threatens Military Action; Pilot Training in Question; Burris Back in the Hot Seat; Judging Sotomayor

Aired May 28, 2009 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: You know, first it was surprise credit card fees and rate hikes. Now, you ,might want to watch your checking account for added fees, penalties According to web site bankrate.com, fees are soaring.

A record $37.8 billion in service fees collected last year, banks are charging higher service charges for checking accounts. And watch out for higher overdraft, ATM and bounced check fees. We need some help here.

Personal finance editor Gerri Willis, live from New York with more.

And Gerri, so -- my goodness -- what can we do about these fees and if we don't have any luck sort of avoiding them, is there anything we can do after the fact to get our money back?

GERRI WILLIS, CNN PRESONAL FINANCE EDITOR: Well, let's understand the problem first.

HARRIS: OK.

WILLIS: Look, you know, Tony, fees have been rising for some time. That's the reality. And the fees we're seeing today aren't necessarily new fees but higher fees, according to bankrate.com.

The fees that are increasing the most are overdraft fees and some banks are including tiered-structure fees where the cost of overdrawing your bank account multiple times gets more and more expensive.

Now, account maintenance fees have increased. Bounce check fees are on the rise. ATM surcharges are higher, too -- Tony.

HARRIS: Oh, boy. Now, we've talked a lot about credit cards, and sometimes these charges are buried deep in the fine print.

Gerri, what can we do to make sure we're not getting hit with the fee that we actually never saw coming?

WILLIS: Well, you know, banks generally have what's called a fee schedule. That lists all of the fees you're paying.

If you don't know what the fees are now, you can ask to see a copy of the schedule, or it's probably posted on their Web site. And if fees are going up, you may not get the same notification you would with a credit card. The notification could come as a statement insert, or you may get e-mail notification to look online.

But bottom line here is that you have to be vigilant when it comes to banking. Take the onus on yourself to learn what these fees are.

HARRIS: Gerri, who's on your side as a bank customer? Is anyone fighting for us on this issue of the expansion of these fees?

WILLIS: Well, the FDIC has been monitoring banks.

HARRIS: Sheila Bair, right?

WILLIS: Sheila Bair. You've interviewed her many times.

They're taking a look at this, and certainly consumer advocates are pushing for reform in this area. But, hey, bottom line here, Tony, we're not hostage to a lot of these fees. Many of them can be avoided, like overdrawing your account.

Don't overdraw your account, that's how you don't incur that fee. And also, shop around.

There are over 8,000 banks in this country, and even more credit unions. And credit unions generally have lower fees and higher rates on savings accounts, so you can always make that hard choice, move to a different institution if you really don't like what you're seeing.

HARRIS: Well, Gerri, appreciate it. We're planning kind of a really big blowout segment on this next week, and we're going to need your help.

WILLIS: Oh, happy to play. Definitely. Bring me in.

HARRIS: Absolutely. Gerri, appreciate it. Thank you.

WILLIS: My pleasure.

HARRIS: OK. We want to hear from you about all of this. In fact, you're going to help us plan that big segment in the program early next week.

And Josh, how are we asking folks to help us here?

JOSH LEVS, CNN CORRESPONDENT: That's the big blowout you were just talking about. There it is.

Yes, well, we started off with where we should always start, the Tony blog. Here it is right behind me. You can see the question. We're asking, if you've been hit by hidden bank fees, all you've got to do is go to CNN.com/newsroom.

We have this posted here, and we're asking you specifically, have banks gone too far? Are new charges fair in this economy? You can post your comments here. We'll be sharing some. You see our EP (ph) posted there, Jeni Cook.

And we encourage you to weigh in there, because what we want you to do, especially if you have gotten one of these notices, hold on to it. Don't lose it.

We might be in touch and say, hey, take out any personal information. We want to see the tiny print some banks are tossing at you, because, Tony, we all have seen messages like this come from the bank. It's really hard to understand them.

HARRIS: Well, I don't know how we help people unless we get some help from them in understanding what they're getting hit with in terms of these fees. So maybe this is a really good approach.

Let's -- send us the redacted portion.

LEVS: Right, yes. Don't send us anything personal at all.

HARRIS: I just wanted to say that word, that's all.

LEVS: Yes. Yes, you enjoy "redacted." You say that a lot. Usually it's a CIA term.

Let's quickly show your face so everybody knows -- where do I -- there you go, the image of Tony, the CNN NEWSROOM blog.

HARRIS: Good.

LEVS: There it is, CNN.com/newsroom.

Also, I'm on Facebook and Twitter. You got the next screen. You can send them to me if you want to use a social networking site -- Facebook.com/joshlevscnn, Twitter.com/joshlevscnn.

We're going to look at everything. We're going to pull it all together. We're going to start a conversation.

And you're right, Tony, starting next week this will be a big topic we explore during your hours.

HARRIS: So, again, if you're being hit by these fees, tell us about it and let us try to help if we can.

LEVS: We're going to see what we can do.

HARRIS: All right, Josh. Good stuff. Appreciate it.

LEVS: Thanks, Tony.

HARRIS: Four explosions rocked northern Pakistan today. They hit in or near the city of Peshawar.

The latest, an attack on a hospital. No word yet on casualties. Earlier, two bombs exploded at open-air markets, killing at least five people and wounding more than 70. Officials say a suicide car bomb killed a policeman a short while later. The Taliban taking responsibility for yesterday's big attack in Lahore. It killed 27.

The lightning rod issue of Israeli settlements at the forefront today as President Obama meets with Palestinian leader Mahmoud Abbas. The Obama administration is clear Israel must halt all building on Palestinian land.

Secretary of State Hillary Clinton bluntly spelling out the president's position.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: With respect to settlements, the president was very clear when Prime Minister Netanyahu was here. He wants to see a stop to settlements. Not some settlements. Not outposts. Not natural growth exceptions.

We think it is in the best interests of the effort that we are engaged in that settlement expansion cease. That is our position. That is what we have communicated very clearly not only to the Israelis, but to the Palestinians and others, and we intend to press that point.

(END VIDEO CLIP)

HARRIS: So, the line in the sand is pretty clear here. No exceptions for natural growth. The Obama administration insisting on a complete and total freeze of Israeli settlements in the West Bank.

Our Ben Wedeman is in the occupied territory to explain the issues central to today's talks.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: When U.S. President Barack Obama meets with Palestinian President Mahmoud Abbas, one of the main issues they'll be discussing is Israeli settlements in the occupied West Bank. And from this spot here, east of Jerusalem, you can see vividly why the settlements are such an issue.

We're right next to Ma'ale Adumim, which is the biggest Jewish settlement in the West Bank. Now, Israeli Prime Minister Benjamin Netanyahu has said -- he's insisted that he wants natural expansion or growth to occur within those settlements, which means that settlements Ma'ale Adumim are going to get bigger and bigger, and that's something the Palestinians are completely opposed to.

Now, what you see on the other side of this valley is the town, the Palestinian town of Eizariya, known from the bible as Bethany. Now, this town is right up against Jerusalem. In fact, many people consider it part of Jerusalem, but it's separated from Jerusalem by the Israeli so-called security barrier, what the Palestinians call the apartheid separation wall. It cannot expand. It can't have natural growth in the direction of Jerusalem because of the wall. And because of Ma'ale Adumim, it can't expand in that direction.

Now, also, what the Israelis are doing, if we just pan the camera down into the valley, they are also building the separation barrier here as well. And there's an Israeli plan to annex what's known as E- 1 or Eastern 1. That's part of a plan to expand this whole area to be under Israeli control.

If the E-1 project is realized -- and it's been opposed by the United States -- it would effectively cut off the northern West Bank from the southern part of the West Bank, making a Palestinian state, a contiguous Palestinian state, almost impossible to realize. And that's what Mahmoud Abbas, the Palestinian president, is going to be stressing when he meets with the U.S. president in the White House.

I'm Ben Wedeman, CNN, reporting from east of Jerusalem on the occupied West Bank.

(END VIDEOTAPE)

HARRIS: OK. The start of hurricane season is four days away. And surprisingly, thousands living along our nation's shores are simply not prepared.

Plus, we're already getting word of our first tropical depression.

(COMMERCIAL BREAK)

HARRIS: Hurricane season just days away. Are you ready?

CNN's John Zarrella has been asking around, and he joins us now from Miami.

John, good to see you, sir.

JOHN ZARRELLA, CNN CORRESPONDENT: Hey, Tony, you know, 35 million Americans live in coastal areas of the United States that are most threatened by hurricanes. So you would think that most of those people would have their hurricane plan in place by now, as hurricane season is only a few days away. You would think. You would be wrong.

(BEGIN VIDEOTAPE)

ZARRELLA (voice-over): Galveston: Rebuilding the seawall continues after Hurricane Ike.

New Orleans: The fortified levees are inspected.

Alabama: Rehearsal for a massive coastal evacuation.

Days before the start of hurricane season, preseason drills and preparations are nearly complete.

You have been paying attention, right? Surely you heard the chorus of warnings.

The U.S. commerce secretary...

GARY LOCKE, U.S. COMMERCE SECRETARY: Public awareness and public preparedness are the best defenses against a hurricane, and that defense is more important than ever.

ZARRELLA: The New Orleans mayor...

MAYOR RAY NAGIN, NEW ORLEANS: Each citizen must have a personal evacuation and recovery plan that accounts for your entire family.

ZARRELLA: The hurricane specialist...

UNIDENTIFIED MALE: Plan now, know what to do, so you'll be ready when the storm threatens.

ZARRELLA: With so many drums beating, everyone living in hurricane-prone communities is ready, right? Well, no. Not hardly.

A new Mason-Dixon poll sponsored by the National Hurricane Survival Initiative found most people surveyed from Maine to Texas have done little to get ready.

Despite recent big ones, Katrina, Rita and last year, Ike, 83 percent of the 1,100 people surveyed have taken no steps to make their homes stronger. Sixty-six percent have no hurricane survival kits, basics like food and water for three days. And 53 percent don't know if their insurance policy covers hurricane damage.

Every year, surveys find hurricane apathy pretty much unchanged, no matter how bad the season was. Sociologists chalk it up to human nature -- procrastinate. Emergency managers say the "uh-oh" factor will kick in when...

UNIDENTIFIED MALE: What I saw the people really do when the big ones are coming, they get prepared.

ZARRELLA: But this year, emergency managers fear because of the economy, many people can't afford to stock up.

UNIDENTIFIED MALE: We would like people to set aside a little bit of money and buy a little bit of the supplies that they need now and a little bit more every week as they get the money.

ZARRELLA: If they just can't, experts say now is the time to come up with a plan to evacuate.

(END VIDEOTAPE)

ZARRELLA: And there's another scary wrinkle out there. Because of all of the -- particularly in Florida, all the foreclosures and empty housing down here, emergency managers are concerned that if a big hurricane is threatening, there simply won't be anybody around to protect those houses to put the shutters up, and we may end up with even more damage and loss of property because of that. HARRIS: Let me go a little fishing here with you, John. Is there something beyond simple procrastination -- and maybe you hit on it at the end of the piece there -- that explains why people don't get prepared in advance?

ZARRELLA: You know, emergency managers say there's another factor, too, and let me give you an example.

Hurricane Andrew hit about 50 miles south of here in 1992 in the Homestead area. Well, people up here in the Broward County all said, oh, we went through a hurricane. So, even this latest survey found 62 percent of those surveyed don't think they're vulnerable to a hurricane.

And that's because a lot of people say, oh, I went through a hurricane. I went through Andrew. I went through Ike. I went through Katrina. When perhaps they were on the periphery of the storm, they really did not go through the core of a major hurricane.

And now I want to send it over to someone who always has my back...

HARRIS: Yes, he does.

ZARRELLA: ... when I'm out there in a hurricane, and that's Chad Myers at the forecast center -- Chad.

(WEATHER REPORT)

HARRIS: The rough times have forced many businesses to change the way they operate to survive. A task tailor-made for this clothier.

(COMMERCIAL BREAK)

HARRIS: So, for the 17th straight week, the number of people getting jobless benefits hits a new record high -- 6.75 million Americans, the most on record dating back to, what, 1967 are relying on state benefits.

A little silver lining here. First-time claims dropped to 623,000. That is fewer than analysts expected and perhaps a sign -- perhaps -- that the layoff picture is starting to level out a bit.

So, you go to apply for a car loan and your credit is denied. And certainly you're not alone in this story. It is getting harder to get credit as credit card companies try to pare down risk.

Personal Finance Editor Gerri Willis is back. She's with us live from New York with advice on what to do if you're denied credit.

Gerri, where do we start here?

WILLIS: Well, look, Tony, if you apply for a credit card and you're denied, you typically receive a letter, and that lists why you were denied. If you're denied because of your credit score, you automatically qualify to get a free copy of your report. But don't delay. You must ask for the report within 60 days of getting the notice.

Keep in mind here that even if you didn't get denied, you can get a free copy of your credit report at annualcreditreport.com. If you don't understand the reason why you've been denied, or the reason is just flat-out wrong, say, for example, your credit report lists a delinquent credit account that you never had, make sure to contact the issuer and get an explanation -- Tony.

HARRIS: So, if there is an error on that report, how do you go about correcting it?

WILLIS: Write a letter to the credit bureau and include copies of any documents that support your position. The credit bureau has to investigate your claim within a month. Now, once a mistake on your credit report has been corrected, you can request that the revised version be sent out to anybody who's recently pulled your report for a credit check. Just make sure you ask, because this doesn't happen automatically -- Tony.

HARRIS: Yes, credit score. What can you do if you just have a low credit score, Gerri?

WILLIS: Pay down your debt. Job number one. You know, you've got to pay down your debt.

If you've recently been laid off or you're going through another hardship, call your creditors and ask if you can work out a payment agreement. Maybe you can get your APR lowered so it would be easier to pay off that credit card debt.

If you do have bad credit, think about opening up a secured credit card. It works like a regular credit card, except you put down a deposit that acts as your credit limit. You may also consider getting added as an authorized user on somebody else's credit, but make sure they pay their bills on time.

And finally, be very wary about your credit card statements. Now that credit card reform is headed our way, credit card companies, they're implementing new fees, as we've been talking about. Shorter grace periods. Higher late fees. So you've got to watch the details here, because you want to know when they're making your life just a little bit harder. Right?

HARRIS: Boy, we've got a lot of work to do here.

Gerri, appreciate it. Thank you.

WILLIS: My pleasure.

HARRIS: If you want the latest financial news and analysis, look, you can't do better than our money team working at CNNMoney.com. While you're there, check out our special report, "America's Money Crisis." You see the lead story there, "Major GM bondholders OK revised deal." Just go to CNNMoney.com.

CNN has been profiling the effects of the recession on everyday Americans. In today's "Money & Main Street" segment, the story of Ryan Taylor the tailor. His thriving business centers on selling clothes before he makes them, and his client list ranges from Hollywood to what Sly Stone called everyday people.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): With swatches of fabric and measuring tape, Ryan Taylor sells clothes before he makes them.

RYAN TAYLOR, OWNER, DROBE: So, we eliminate the money that it costs to have your clothes tailored. We eliminate the time that it costs to go shopping.

ROWLANDS: And the cost of inventory. When a sale is made, half the money is collected up front, which helps pay for the cost of materials.

Taylor says his custom made clothes are about the same price you would find in a department store.

TAYLOR: Our business model is remarkably fit, lean. We have no inventory. Our inventory, quite honestly, is simply fabric.

Let's do it.

ROWLANDS: When he started his company, DROBE, which is the word "wardrobe" without the "war," Taylor was selling clothes the old- fashioned way, making them first. This is a photo of his booth at a Las Vegas trade show in 2001. He didn't sell a thing.

TAYLOR: When I came home from that show, thousands of dollars in the hole, I said, "How can I create a better story?"

ROWLANDS: So, he created the new business model. One of his first clients was the late comedian Bernie Mac.

TAYLOR: I called "The Bernie Mac Show" -- rest in peace -- and the stylist there said, "Come on in. Let me see what you have." And he was my first celebrity client.

ROWLANDS: Taylor now sells to several celebrities, including musician Johnny Gill, who recently bought some clothes at his home in Beverly Hills. Other celebrity clients include Martin Lawrence, Jay Leno and Al Pacino. But Taylor says most of his business comes from average Joes who hear about DROBE through referrals.

Taylor says his love for making and selling clothes never changed, but changing the way he does business has allowed him to thrive in a tough economy.

Ted Rowlands, CNN, Los Angeles. (END VIDEOTAPE)

HARRIS: "Money & Main Street: How to Cope Through this Difficult Economy." More of our series tonight at 8:00 Eastern Time, right here on CNN.

GM workers here in America aren't the only ones worried about the company's push toward bankruptcy. More than 50,000 employees in Europe are also waiting to see what happens.

(COMMERCIAL BREAK)

HARRIS: And just another quick reminder -- to get the latest on financial news and analysis, just go to cnnmoney.com.

Very quickly now, we are three hours into the trading day. We want to get you to the New York Stock Exchange for a look at the big board. We've been up, we've been down and now we're down. I guess you could call it pretty flat.

The Dow down six. The NASDAQ down two. So, you know, pretty flat so far. Three hours into the trading day. We will follow the numbers with Susan Lisovicz right here in the CNN NEWSROOM.

If the analysts are right, lawyers are putting finishing touches on General Motors bankruptcy paperwork. A filing could happen any time, but more likely tomorrow or Monday.

This new development, however, today, a group of GM bond holders has accepted a sweetened debt for stock deal. They own a 10 percent stake of a new GM with a possibility of buying another 15 percent. The agreement requires bond holders to cooperate during bankruptcy, meaning the proceedings should go faster and smoother.

GM is racing to sell its European brands before any bankruptcy filing. Those name plates include Opel, Saab, Vauxhall, but all night negotiations in Berlin ended in frustration.

Two reports now -- Diana Magnay is at an Opel plant.

And first, CNN's Adrian Finighan is live from GM's Boxhaul plant in Ellesmere Port, England.

And Adrian?

ADRIAN FINIGHAN, CNN CORRESPONDENT: Tony, I'm here. I'm sorry. I was --

(CROSSTALK)

HARRIS: No hurries. Adrian, no worries. No hurries.

FINIGHAN: Late afternoon sunshine.

HARRIS: No worries. FINIGHAN: Listen, you know, Tony, they've been making Vauxhall here at this plant behind me as long as I've been around since 1964. GM has owned Vauxhall since 1925. It has been one of the most successful and resilient foreign ownerships in U.K. corporate history.

But I'll tell you, despite this brilliant early summer sunshine here, a cloud is hanging over the town of Ellesmere Port, which already bears the scars of previous economic downturns.

This plant here is such a major employer in this area. But the worries over the future are really casting a shadow over people here. It's pretty quiet as you can see right now. I'll tell you why.

The plant is on shutdown for a week. It's an annual thing. The Witson Holiday -- that the plant closes down. So there's no one here. But earlier today we went into the port of Ellesmere -- Ellesmere, the town of Ellesmere Port itself and spoke to local people who were really concerned of the fact that both of the major parties in those talks in Berlin that you were talking about have said that they want to cut 10,000 jobs. And they feel that the British government just isn't doing enough. The German government is engaged and it's trying to do its best for the future of the 25,000 Opel workers in Germany. But here in Britain, they're saying, well, where is the British government?

The British government says it has received assurances from both bidders that British jobs are safe. That's not good enough for British people who argue that Vauxhall doesn't have the problems that Opel has in Germany. And that as a success story, no British jobs should be lost.

These are troubling times for the people of Ellesmere Port.

Tony?

HARRIS: CNN's Adrian Finighan.

Adrian, appreciate it. Thank you.

Let's get to our second report now from CNN's Diana Magnay.

DIANA MAGNAY, CNN CORRESPONDENT: A very wet and gloomy day here at Opel plant in Eisenach in Germany. And that pretty much sums up the mood here amongst workers who had been waiting since November to find out what their future holds.

And after a whole nights of negotiations in Berlin between the German government, between possible investors in Opel, there has been no solution found. And the mood here, people I've spoken to here say that they're extremely disappointed.

Now there's talks in Berlin broke down apparently because of a last-minute request by General Motors for over $400 million in short- term cash. Now, one of the two investors left in the running for GM Europe and thus for Opel Magna, Canadian auto parts maker says it does have that money, it could put that kind of money up, but it would need assurances from the German government that if the whole thing collapsed, the German government would be able to repay it that kind of money now.

Obviously, the German government right now is looking very carefully at how much money it gives out. That is, of course, German taxpayers money in an election year. A very contentious political issue as are job losses throughout the whole of Germany.

Diana Magnay, CNN, Eisenach, Germany.

HARRIS: And tomorrow night a special presentation from our CNN money team. CNN's Ali Velshi and Christine Romans explore the wreck that left U.S. carmakers in really dire, critical condition.

"How the Wheels Came Off: The Rise and Fall of the American Auto Industry," only on CNN, Friday evening. That is 8:00 Eastern Time.

U.S. and South Koran troops are on a higher state of alert today. North Korea is threatening military action following its nuclear test earlier this week. Secretary of State Hillary Clinton has a warning for Pyongyang.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, U.S. SECRETARY OF STATE: It has ignored the international community. It has abrogated the obligations it entered into through the six-party talks. And it continues to act in a provocative and belligerent manner towards its neighbors. There are consequences to such actions.

(END VIDEO CLIP)

HARRIS: Look, we need the -- we really need the big picture here. You know, it is considered the most fortified spot on earth, but what does it look like and what is going on? Of course we're talking about the DMZ.

Josh is back to give us something of a virtual tour -- right, Josh?

JOSH LEVS, CNN CORRESPONDENT: Yes. I wanted to start over at the United States, because I want us to start here. Let's just zoom over to the west. I want you to see the perspective from there. So we're zooming west. We're going to get over to this area where the Koreas are.

Now, check this out. This line along here is what divides North Korea from South Korea. Now, when you take a look at this, we're going to zoom way in. And you're going to see the DMZ, Tony. We're going to be able to see -- I'm talking to this one.

Hey! OK.

HARRIS: OK.

LEVS: We're going to see the DMZ now. Once we're on here, check this out. See where the D is -- Dorsan Observatory. I want us to zoom way in here. And there's a reason for this. When you're at this location at the DMZ, you're actually able to see what's going on at the DMZ. So we have a report for you right here from our Pauline Chiou who stood right there.

Take a look.

(BEGIN VIDEO CLIP)

PAULINE CHIOU, KOREAN DEMILITARIZED ZONE: Behind me is the southern boundary fence, which runs the length of the DMZ, which is 248 kilometers long and four kilometers wide. In the distance, you can see the North Korean flag. That's where the North Korea propaganda village sits. It's still unclear if anyone actually lives there. It was built for show several years ago.

(END VIDEO CLIP)

LEVS: So it's interesting for her to be standing right there, Tony, and seeing what it's like when you get to that spot on both sides.

Now, one thing we keep hearing about is how fortified as you said they are. You got troops on both sides. So you got North Korean troops that are assembling that are ready on the north side of that border. You can see some of them right here. You can also see over, South Koreans here.

So you've got troops on both sides. You got all these lookout spots, right? In which they are checking out, looking for any kind of action on that zone at any time. All of it happening in this location on both sides of the DMZ.

Let's zoom back out, because I want everyone to get a sense of how big this area is and what we're talking about. I also want you to see how close this DMZ is to the capitals. Because one of the problems here, Tony, is that it's not just, you know, this area, this distance from everybody. You've got over here Pyongyang, which is the capital of North Korea. Zoom south to South Korea. You got the capital down there, which is Seoul.

In both cases, you're not far from this demilitarized zone, the DMZ, where there's a lot of concern, a lot of tension and a lot of focus.

HARRIS: All right.

LEVS: And, finally, let's zoom way back out. Because when we talk about the tension in that area, Tony, we're talking about the whole region. You're talking about China over here. You're talking about Japan over here. All of them have troops. All of them could get involved, would there be a conflict.

Also, if we zoom back east to the United States, U.S. troops could get involved. So all of that packed into that one region, ultimately, a lot of it focusing on that one line, that demilitarized zone that's dividing that area, Tony.

One of the tenses spots on earth. That's why it's so fortified. Who knows what will happen next.

HARRIS: And your concern is with tensions running so high that a misstep, a miscalculation, a misunderstanding even could lead to -- we'll leave it there.

Josh --

LEVS: And as you know, it's hard to get news from the North Korean side especially. So it's always hard to know what's going to happen.

HARRIS: That -- that's well done. Thanks, Josh.

LEVS: Thanks, Don.

HARRIS: Still to come, a Florida flight school accused of putting pilots in the cockpit before they're ready. The connection to a string of deadly crashes is raising questions about your safety.

(COMMERCIAL BREAK)

HARRIS: A disturbing connections in three recent fatal airline crashes. The pilots all trained at the same Florida flight academy and evidence points now to pilot error as the cause of the accident.

CNN senior correspondent Allan Chernoff reports.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice-over): Fifty dead near Buffalo when a Colgan air crash. The National Transportation Safety Board's preliminary findings indicate Captain Marvin Renslow responded incorrectly to a stall warning.

Two pilots dead near Jefferson City, Missouri, after taking a pinnacle airplane on a joyride up to 41,000 feet. The NTSB blamed the pilot's unprofessional behavior and poor airmanship.

And five dead when an inexperienced private pilot crashed into another plane above Deerfield Beach, Florida. All these fatal crashes within the past six years share a common link. The pilots all trained at the Gulfstream Training Academy in Ft. Lauderdale.

CAPT. JACK CASEY, COO, SAFETY OPERATING SYSTEM: The one thing that ties them all together is poor airmanship. You cannot build sophisticated airline pilot skills on top of a soft foundation.

CHERNOFF: Gulfstream Training Academy is widely criticized among veteran pilots as a pilot factory. A program that quickly trains students and then sends them out to work for commercial airlines, including its affiliate, Gulfstream International Airlines. It's a quick ticket into the cockpit. Airline pilots who are not in the military typically gain experience over several years as flight instructors in small private planes. But for aspiring commercial pilots who have just 250 hours of experience and $30,000 tuition, Gulfstream Training Academy speeds the process.

Students study for three months, and then serve as first officers on Continental connection flights in Florida and the Bahamas operated by Gulfstream International Airlines. Students get 250 hours of on- the-job training, compare that to the traditional minimum of 1,500 hours flight time most major airlines require.

PAT MOORE, COMMERCIAL PILOT: I don't know how they can justify that. When I get on an airplane, I expect a fully qualified crew.

CHERNOFF: Continental Airlines told CNN, we expect our partners to adhere to the highest safety standards. Gulfstream told CNN it was not prepared to appear on camera, but said "Gulfstream does an outstanding job training commercial pilots and it has done so for nearly two decades. Every U.S. commercial carrier has pilots who have received their training here.

(on camera): As good as the training may be at Gulfstream, veteran pilots say there is no substitute for experience. They say anyone stepping into the cockpit of a commercial plane should have significant flying time. Far more than many students at Gulfstream.

(voice-over): Even so, flight schools like Gulfstream have been gaining popularity as more pilots try to accelerate their careers. But longtime pilots warn their career path is not one to be rushed, because a speedy path to the cockpit may compromise safety.

MOORE: We're talking about lives here. This is not, gee, I like flying airplanes. I think it's cool. This is, if I make a mistake, and I'm not trained properly or my crew is not trained properly, people can be injured or die.

CHERNOFF: Allan Chernoff, CNN, Ft. Lauderdale, Florida.

(END VIDEOTAPE)

HARRIS: Senator Burris back in the hot seat. The questions keep coming.

(BEGIN VIDEO CLIP)

SEN. ROLAND BURRIS (D), ILLINOIS: How many money? I did not raise any money.

QUESTION: Why didn't you reveal these conversations to the impeachment panel?

BURRIS: Because nobody has asked. It was never asked.

(END VIDEO CLIP)

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HARRIS: Illinois Senator Roland Burris defending a conversation with the brother of disgraced Governor Rod Blagojevich in which he discussed donating money to the campaign. Burris' comments were captured on a federal wiretap and released this week as part of an investigation by the Senate Ethics Committee. Well, not a smoking gun. The tape don't exactly clear up lingering questions about the transfer of President Obama's old Senate seat.

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BURRIS: I'm trying to figure out how to deal with this and still be in the consideration for the appointment.

BLAGOJEVICH: I hear you. No, I hear you.

BURRIS: And if I do that, I guarantee you that that will get out and people will say, oh, Burris is doing a fund-raiser, and then Rod and I both going to catch hell. And if I do get appointed that means I bought it. If I don't get appointed, then my people who I'm trying to raise money from will look at me and say what, what's that all about? So, Rob, I'm in a -- I'm in a dilemma right now wanting to help the governor.

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HARRIS: You may recall that Burris under oath failed to mention he discussed the Senate seat with Blagojevich or his people. He eventually did admit to it. Late last night he said the tape really proves nothing.

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BURRIS: My whole thing was seeing the plate clean in the governor's brother. After I hung up that phone, after I said that, it dawned on me then. I couldn't give a check. It would not be right for me to do that. And guess what, I didn't.

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HARRIS: Blagojevich was removed from office earlier this year. He faces up to 20 years in prison on corruption charges.

As a Supreme Court justice candidate, she is under a microscope. Conservatives are pouring over Sonia Sotomayor's casual remarks, her speeches and comments to law students.

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HARRIS: So companies are really scouring the legal opinions of President Obama's pick for the Supreme Court. One question they are asking is where does she stand on business issues? Good question.

CNNMoney.com's Poppy Harlow has the breakdown from New York.

Good to see you, Poppy. POPPY HARLOW, CNNMONEY.COM: Hey, Tony. Good to see you, too.

Yes, the question -- does she rule in favor often of big corporations. When we looked at her record, we talked to legal experts. They say, listen, she's pretty moderate on business issues, but it's unpredictable which way she'll go if she's confirmed to the Supreme Court because she haven't ruled consistently, Tony, on one side or another.

She has supported limiting punitive damages against big corporations. One example of that a 2000 case, where she ruled to limit claims of family members of victims in that TWA flight 800 crash against TWA and against Boeing. She's been pretty balanced in terms of her record on preempting state laws with federal laws.

Big question why does that matter to the business community? Well, generally, it's cheaper for big companies to comply with a ruling that sets a federal standard instead of a patchwork of state regulation. So that's very important to them as well.

HARRIS: Hey, Poppy, let's try it this way. Are there any cases the business community is red flagging?

HARLOW: There are. There's a 2005 case. It involved Merrill Lynch. It's getting a lot of attention right now. In this case, Sonia Sotomayor ruled that investors can sue investment firms for fraud in their state court under the law.

Those cases involving buying and selling stock. Any fraud cases had to be heard in federal court. Now Sotomayor read the letter of the law in this one. She said the plaintiff in the case was a holder of the stock, not a buyer or seller at that time.

So the law didn't apply a literal interpretation there. But, again, what we saw in that case was Merrill Lynch appealed the ruling and it went all the way up to the Supreme Court. And in this instance, her ruling was overturned unanimously, Tony, by the Supreme Court. And the reason that matters to the business community, (INAUDIBLE), professor says, literally, securities fraud cases get dismissed in federal court quite often. So keeping them on the federal level favors big investment firms.

It's interesting.

HARRIS: Yes. And since the Supreme Court gets the toughest cases, if Sonia Sotomayor is confirmed, what kind of business issues would she have to rule on?

HARLOW: Yes, a lot. But there are some few coming up that you want to pay particular attention to. One involves how long investors can wait before they make a securities fraud claim that has to do with pharmaceutical giant Merck.

Another addresses, whether an investment adviser fees were higher than the law permit. So, if she is confirm, she will likely rule on both of those. The overall feeling here, Tony, has been unpredictable where she stands on business, but it's clear she's not an anti- business jurist. But people are definitely scouring her records, Tony.

HARRIS: All right. Poppy, appreciate it. Thank you.

HARLOW: Sure.

HARRIS: You know, for some conservatives it is open season on president Obama's Supreme Court nominee, Sonia Sotomayor. Almost two decades of court decisions going under the microscope.

CNN's senior political correspondent Candy Crowley takes a look at the fight ahead.

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CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Outrage from familiar voices.

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RUSH LIMBAUGH, RADIO TALK SHOW HOST: Obama is the greatest living example of a reverse racist. And now he's appointed one.

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CROWLEY: At issue is a sentence in a 2001 speech by Judge Sotomayor about diversity on the bench.

She says she tries to be aware of her own assumptions and conceded it's possible for someone of one background to understand the needs of someone from another. She also said, "I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn't lived that life."

Former House Speaker Newt Gingrich was tweeting this morning, "White man racist nominee would be forced to withdraw. Latina woman racist should also withdraw."

Unlikely, but her words are being studied, as are 17 years of decisions, from the bench. A case now before the Supreme Court involves the city of New Haven, which threw out a promotion test for firefighters after whites scored better than African-Americans. The whites sued, but, when the case got to federal Appeals Court, Sotomayor joined colleagues ruling against the white firefighters.

TOM GOLDSTEIN, SUPREME COURT ANALYST: Does she have the perspective of someone who is attentive to claims of discrimination or the possibility of police misconduct? Is she aware that that's a possibility? Yes. But she's not out there ruling for one side in all the cases, by any means.

CROWLEY: In the case of a New York City cop fired for making anonymous racist remarks, Sotomayor dissented from the majority, arguing that the First Amendment was applicable and the fired officer should be allowed to take his case against the police department to trial.

Tom Goldstein has argued 21 cases before the Supreme Court and studied her record.

GOLDSTEIN: Judge Sotomayor is on the moderate left. There's no question that she's a liberal, but she's not on the far left. She's not an ideologue.

CROWLEY: There are few hints in the paper trail about how she would come down on the death penalty, abortion, gay rights.

Ken Duberstein helped shepherd four Supreme Court justices through confirmation hearings. He advised each to punt legal and social flash point issues with the following.

KEN DUBERSTEIN, REPUBLICAN CONSULTANT: "As a judge, I must be impartial. I need to look at the facts of every case. I don't have a predestined personal view. My ideas don't matter. What matters is the law. I will judge it as it comes, based on the facts of the case."

CROWLEY: Duberstein's best advice: Don't embellish. Don't shovel. Tell the truth.

Candy Crowley, CNN, Washington.

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HARRIS: And we are pushing forward now with the next hour of CNN NEWSROOM with Don Lemon.