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U.S., South Korean Forces Raise Alert; President Obama's Meeting With Mahmoud Abbas; Concerns Over GM's Plans in China; Judging Sotomayor; Taylor Find Niche Clothing Market; Woman's American Flag Removed After Coworker Complains

Aired May 28, 2009 - 14:00   ET

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

DON LEMON, CNN ANCHOR: Meantime, President Barack Obama is on his way back to Washington. That's after a couple of days out West. And the Middle East is on his mind, I should say.

At the White House, we'll go straight into the meeting with the president of the Palestinian Authority, having met last week with the new prime minister of Israel. Next week, he visits the region himself.

I want to turn now to CNN's Suzanne Malveaux. She joins us now live. She's going to push this story forward for us.

Suzanne, what is the aim of the meeting today with President Abbas?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, one of the things, Don, that they want to make sure that President Obama does for Abbas is really give him a little bit more political heft, some more credibility in his own region, in that part of the world. He is seen as -- really, as you know, the Palestinian split. There is Hamas on Gaza, basically in charge of one group of Palestinians, and then there's Mahmoud Abbas, in charge, obviously, of the West Bank.

He is expired, his four-year term, expired in January. The law says that perhaps he can serve it out until next January. But there's a lot of people who question his authority and his ability, whether or not he can actually secure that part of the country and whether or not they can really bring about Middle East peace.

So, the very picture, Don, of these two leaders together, these gentlemen sitting side by side, they hope will help give him some sort of a greater role and strengthen him when he goes back to negotiating the table -- Don.

That's here. And you're talking about the picture, and it's a strong picture. But what about the Saudi role in all of this, Suzanne?

MALVEAUX: Well, he's actually going to Saudi Arabia next week. That's going to be his first stop on his overseas trip.

Very important, Don, because obviously he's going to be meeting with King Abdullah there. They've got their own plan. It's a broader plan. It's something that they came up about seven years ago. A lot of Arab nations like this plan, but essentially they believe that Israelis and Palestinians will come together only if Israel gives back a portion of the land that was seized 40 years ago, back to the Palestinians. So far, Israelis have expressed no appetite for that whatsoever, but there are a lot of Arab nations that say, look, we'll normalize our relations with Israel if you're willing to give up that piece of land.

Very controversial. That is part of the Saudi plan.

And what U.S. officials have been trying to do is try to make it a bit more palatable to the Israelis. They're working with the Arab League so that they can come up with something, some sort of common ground to bring these groups together, Don. It is really just the beginning of the process.

LEMON: Yes. You talked about next week's trip. Talk to us about the message here to Muslims.

MALVEAUX: Well, one of the things he's going to do when he's in Egypt, he's going to do a major address. It's billed as a major address to the Muslim world, to the Muslim community. It was something he was supposed to do the first 100 days, it slipped back a little bit, but essentially it's about this is not business as usual.

First, that the Obama administration it's engaged, it's engaged early on, that it's very active. We see various players, Secretary of State Clinton, as well as others who have been to the region already, and that he wants to take some sort of leadership role, that everybody has something to give up here, but everybody has something to gain.

It is far from clear, Don, whether or not they're going to be successful, but the message is certainly, we are willing to give it a try, and we want to turn the page. We want to be more of an ally to those in the region after the, you know, controversial Iraq War.

LEMON: All right. Suzanne Malveaux at the White House.

Thank you very much for that, Suzanne.

Well, it looks like the bondholders are on board. They have struck a new deal with GM. But no matter how sweet it is, the deal probably can't stop the end of GM as we know it.

(COMMERCIAL BREAK)

LEMON: General Motors and its bondholders finally found some common ground, but bankruptcy is still looking like the only option here. The company has struck a deal with some of those bondholders. They now get 10 percent of the company and rights to buy another 15 percent at a low price. In return, they don't fight the government's plans for a quick GM bankruptcy.

Today's filing with the Securities and Exchange Commission also said GM's unsecured debt would be wiped away, and Uncle Sam would own nearly three-quarters of the company. The deadline to restructure or file for bankruptcy is Monday.

Our Susan Candiotti is in suburban Detroit right now in these last days -- hours maybe -- of General Motors as we know it.

Susan, what will bankruptcy mean to that community where you are now? I'm sure they're talking about it.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: It could be. Of course, it could have a huge impact, because not only do you have GM here, but you have all the people that survive because of GM -- the restaurants, the car part dealerships, the people who sell homes to people, all kinds of -- obviously businesses that are built around this -- the car dealers, naturally. So there has been concern for a very long time about what a potential bankruptcy would mean.

As we know, this proposed deal doesn't necessarily mean there won't be a bankruptcy filing. In fact, that is still a likely turn of events here. But if it does, it means that a judge would then take over and try to get GM into the kind of car company that could survive in the long run.

And to that end, we had a chance to talk to at least one of the union reps here since we only arrived here a short time ago who said, look, we realize that is still a possibility, bankruptcy. But in the end, it is something that perhaps all Americans have to realize, that we all might have to change, in effect, our standard of living and be able to, all of us, work toward a working wage for everyone so that everyone can afford to buy cars, and that includes car workers.

So, right now as we speak, there is a vote going on at the various union halls here that will be going on for the next several hours, and probably won't know any results until at least midnight about whether the union workers will agree to go along with the deals that they have worked out amongst themselves, the give-backs to GM. All in the hopes, of course, of seeing a stronger GM down the road -- Don.

LEMON: And our Susan Candiotti will be there covering it all.

We appreciate it, Susan. Thank you.

(BUSINESS REPORT)

LEMON: As Chrysler goes and GM probably will go, so goes Visteon. The auto parts supplier based in Michigan has filed for bankruptcy protection. The demand for its supplies just isn't what it used to be. Visteon was part of Ford at one time. About 31,000 people in 27 countries work for Visteon.

Well, the next GM car or truck that you buy might have a label on it that just seems unthinkable. A "Made in China" label. And the most famous consumer advocate here in the U.S. sees red flags everywhere.

Our Jim Acosta reports.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): For all its problems, General Motors can speak Chinese. GM is now vying to become the number one carmaker in the communist country. Consumer advocate Ralph Nader warns GM is on its way to saying good-bye, USA, and ni hao, or hello, China.

RALPH NADER, CONSUMER ADVOCATE: Where's our self-respect as a nation?

ACOSTA: After taking billions in bailout money and announcing thousands of layoffs, GM has plans to ramp up production in China to build cars for U.S. consumers. This recently amended agreement between the United Auto Workers Union and GM says, both parties discussed the company's plan to import certain vehicles from China.

Nader says a GM in bankruptcy would allow the carmaker to shift its China plans into overdrive.

NADER: Do we really want the United States of America export its auto industry, paid for by the taxpayer and unemployed workers to a dictatorship and a country like China?

ACOSTA: And the cars GM is building in China, like the Chevy Spark, are the very vehicles President Obama would like to see stay in the U.S.

BARACK H. OBAMA, PRESIDENT OF THE UNITED STATES: The path I'm laying out today is our best chance to make sure that the cars of the future are built where they've always been built, in Detroit and across the Midwest.

ACOSTA: Industry analysts say GM is simply focusing on what's working.

CHRIS ISIDORE, CNNMONEY.COM CORRESPONDENT: The main thing that GM plants in China are shipping to the U.S. are not cars. It's money, that there are profits being made in China by GM's operations which are being used to support the company here.

ACOSTA: Ohio Democratic Senator Sherrod Brown wants to slam on the brakes.

SEN. SHERROD BROWN (D), OHIO: That cannot be part of the restructuring of this company. Their business plan cannot include more outsourcing of jobs while taking U.S. tax dollars.

ANNOUNCER: The compact car that people could count on.

ACOSTA: After fighting for seat belts in GM products decades ago, Nader is concerned about the safety of Chinese cars.

NADER: They're very much of a concern. There's been contaminated fish, contaminated food.

ACOSTA: But he's more worried about the future of the American autoworker.

NADER: We'll look back at the bankruptcy as a death star that emerged to empty out jobs and communities all over the country.

ACOSTA (on camera): As a concession to its unions, GM has agreed to keep open one U.S. plant it had slated to close to build some of the cars it's already making in China. Estimates vary as to how many cars GM wants to import from its Chinese factories. The company did not respond to our request for a comment.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

LEMON: And tomorrow night, CNN's Ali Velshi and Christine Romans explore the American auto industry and where it might go from here. "How the Wheels Came Off: The Rise and Fall of the American Auto Industry," it runs Friday night, 8:00 p.m. Eastern, only here on CNN.

Well, you know what? With the new hurricane season days away, Americans who live in the danger zones, well, they should be well prepared, right? But are they?

We'll tell you what a new survey found out.

(COMMERCIAL BREAK)

LEMON: We heard our Chad Myers talk about it just a little bit ago, another hurricane season just four days from now. So, you think Americans who could lose everything in a big storm, well, they would be prepared, right? Not so much.

Here's CNN's John Zarella.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (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)

LEMON: All right. Well, just ahead of hurricane season -- by the way, that was our John Zarrella reporting.

Just ahead of hurricane season, a tropical depression in the Atlantic.

(WEATHER REPORT)

LEMON: OK. Meantime, in Honduras, at least three deaths and dozens of injuries are reported after a powerful earthquake. The quake with a magnitude of 7.1 struck before dawn, and it was centered near the country's biggest bay island.

Terrified residents and tourists, well, they ran into the streets when the earth started shaking beneath them. Authorities are still trying to determine the extent of the damage. Right now there are reports of more than two dozen homes destroyed in Honduras and also in Belize.

Judges don't make laws, or so we have always heard. But they can make headlines, especially if they give speeches on race and gender and years later get nominated for the Supreme Court.

(COMMERCIAL BREAK)

LEMON: All right. There's been lots of talk about Supreme Court nominee Sonia Sotomayor, and a speech she made back in 2001. And some are saying that it was controversial, that it was racist, and they have been also digging into her record. Reporters and others as well. Well, today, when questioned by reporters, Robert Gibbs, the White House spokesperson, said the president is comfortable with his pick as Supreme Court justice.

Take a listen.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: And the president is comfortable with her judicial philosophy.

QUESTION: How does he become comfortable with it if he doesn't want to ask the point-blank the question that was (OFF-MIKE)?

GIBBS: I think he feels comfortable in being able to talk to her about her judicial philosophy, the way she interprets the Constitution. I'm not burdened by the knowledge of being a constitutional law professor. But obviously they're having discussions, and I feel comfortable relaying to you that he feels comfortable.

(END VIDEO CLIP)

LEMON: Robert Gibbs just moments ago at the White House briefing.

Let's talk more now about that issue. Do Hispanic judges rule differently from non-Hispanic judges? Do Blacks rule differently from Whites? Men from women? Can judges filter out their races or genders and their backgrounds?

Well, these impossible questions arise from a heated debate over Judge Sonia Sotomayor, President Obama's nominee to replace David Souter on the U.S. Supreme Court.

CNN's Candy Crowley explains.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Outrage from familiar voices.

RUSH LIMBAUGH, "THE RUSH LIMBAUGH SHOW": Obama is the greatest living example of a reverse racist and now he's appointed one.

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, "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's on the moderate left. There's no question she's a liberal, but she's not on the far left. She's not an ideologue.

CROWLEY: There are a 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, FORMER CHIEF OF STAFF TO REAGAN WHITE HOUSE: 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.

(END VIDEOTAPE)

LEMON: Candy Crowley joins me now from Washington.

Hello, Candy.

So, is any of this really going to hold up Judge Sotomayor's nomination?

You know, I was talking to one guest earlier, and we were talking about Clarence Thomas' nomination, he obviously was confirmed and Alito, you know, his nomination, he said something that some would deem controversial, not a lot made of it.

So, is this going to hold up her nomination?

CROWLEY: There doesn't seem to be anything in the public record that we are now seeing that would doom this nomination. Now, how long it goes on actually has to do with the majority, the chairman of the committee, as to how many days there will be hearings. They've already sent out the questionnaire that they want Judge Sotomayor to fill out. So, but there's nothing there.

And listen, politically speaking, this would be really tough for republicans to hold up, barring some major thing. We are talking about the first Hispanic judge to sit on the Supreme Court. It is a huge constituency out there, and do not believe for a minute that republicans are not aware of that. And practically speaking, they really don't have the numbers to hold up this nomination, at least for very long.

So, unless something huge arises, it is hard to see how her nomination could get derailed.

LEMON: OK. So, you know, her nomination, right, will not change the balance of the court, so would republicans or conservatives really want to oppose her, Candy?

CROWLEY: Well, that's the other thing. I mean, first, I do think you'll see some republicans opposing her on the basis of some of these statements and some of her rulings. But it doesn't change the balance of the court.

What happens if, during President Obama's administration, a conservative leaves the court, which is possible? That's where republicans need to focus their attention, because that's a seat that, when filled, could change the balance. The court now leans conservative, but you lose one of those conservative judges and President Obama is the one who makes -- who nominates the replacement, that is the one that republicans really have to pay attention to, because Sotomayor is taking Judge Souter's place. She is to the left of center, he is often to the left of center. So, it doesn't change that balance. There will be bigger battles ahead.

LEMON: So, then what's the fuss about then, Candy?

CROWLEY: Fundraising.

LEMON: Simple fundraising. Back to you, right? CROWLEY: That's right. I mean, what can I tell you? For groups, for conservative groups, it's about audience, because certainly with Rush Limbaugh, he has a conservative audience. There is almost no issue more important to the conservative base of the Republican Party than that of Supreme Court judges, simply because they are there for so long, because they have so much power really to change the course of American life.

So, this is something that conservatives get very into and which helps these groups raise money. It also, they hope, helps from the outside to push republican senators on the inside to ask the tough questions.

LEMON: All right, Candy Crowley, thank you very much. We appreciate -- we appreciate that.

So, is Judge Sotomayor guilty of racism as some charge? We want to know what you think. Just a couple of thoughts here. You guys have been weighing in. I haven't looked at these. So, let's hope there's nothing up there we don't want on.

Someone said -- this isn't about Sotomayor. She said, "Thanks, Don, for fixing Elizabeth Cohen's microphone."

WhurdsDeRodan says, "It's more than admirable to have a Hispanic woman appointee. But sad to read that a judge would interject race into justice."

"Sotomayor will be just fine. She is more moderate than most and Obama isn't going to pick a radical anyway."

Thank you for trying to fix her microphone, someone else said that.

"So, Don, would love to hear what you think of Sotomayor's comments."

I'll leave that up to you.

"GOP is good about creating fear through sound bites. In context, the comments are not racial. Typical GOP lie/distortion."

And then someone else says, "People are quick to judge without knowing everything about that person... unless it's in their best political interest."

So, we thank you for your comments. We really read them here and it's instant feedback, so we appreciate it. Thank you very much.

Well, you know, CNN has been reporting the effect of the current economic crisis on ordinary Americans. Well, in today's "Money & Main Street" segment our Ted Rowlands has the story of Ryan Taylor, the tailor, his thriving business center thrives on selling clothes before he makes them. And his client list ranges from Hollywood to Main Street.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): With swatches of fabric...

UNIDENTIFIED MALE: It's gorgeous.

ROWLANDS: ... and measuring tape, Ryan Taylor sells clothes before he makes them.

UNIDENTIFIED MALE: Thank you, sir.

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

ROWLANDS: And the cost of inventory. When a sale is made, half the money is collected up front.

UNIDENTIFIED MALE: I like that.

ROWLANDS: 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 fashion 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 up 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)

LEMON: Well, "Money & Main Street," how to cope in this tough economy? More on our series tonight, 8:00 p.m. Eastern, right here on CNN.

Sure, President Lincoln had to contend with the Civil War, but he had a lot more on his mind, too. We have the proof in his own words.

(COMMERCIAL BREAK)

LEMON: OK. Companies are scouring the legal opinions of President Obama's pick for the Supreme Court. One question they're asking, where does she stand on business issues? CNNMoney.com's Poppy Harlow has a breakdown from New York.

Hi, Poppy, where does she stand?

POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hi, Don.

People, of course, as you said scouring the records of her decisions in the past as a judge. Legal experts saying Sonia Sotomayor is pretty moderate on business issues as a whole, but she's unpredictable, because she hasn't consistently ruled on one side or the other. She has supported limiting punitive damages against some big companies. One example of that is ruling to limit claims against TWA and Boeing after the crash of Flight 800.

She's been pretty balanced in terms of her record on preempting state laws with federal laws. And why does that really matter to the business community? Well, generally as a trend, we've seen it's cheaper for companies if a ruling makes them comply with the federal standard that is set, Don, rather than a patchwork of state regulations here and there.

So, they're paying very close attention to all of the rulings on business issues.

LEMON: OK, you talked about, I think you said TWA and Boeing or whatever, these weren't red-flag business issues, though. Is there anything that she's done in a case that has red-flagged the business community?

HARLOW: There is. It was a 2005. It was involving investment firm Merrill Lynch at the time, getting a lot of attention now. What she did, Sotomayor ruled that investors can sue investment firms for fraud in state court. That went against the law saying that suing for fraud involving buying or selling stock had to be heard on the federal level. She read the law. Literally, she took the letter of the law there saying the plaintiff of the was a holder of stock, not a buyer, not a seller, so the federal law didn't apply.

That case, Don, after Merrill Lynch appealed, it went all the way up to the Supreme Court and her ruling was overturned unanimously by what could be some of her fellow justices if she's confirmed. And again, why the business community cares about this is, the Tulane Law professor said, the securities fraud cases more often get dismissed in federal court, so keeping on them on the federal level and not a state-by-state level tends to favor those big investment firms, Don.

LEMON: We know that the Supreme Court does rule on business issues, but usually we hear about social issues, you know, in the news when it comes to the Supreme Court. So if she is confirmed, what kind of business issues would she likely have to rule on, Poppy?

HARLOW: Sure. There's a few cases right now, Don, being considered. One involves how long investors can wait before making a securities fraud claim against the company. The that case involves Merck, the pharmaceutical giant, right now.

Another case addresses whether or not an investment adviser's fees were just so high that they were above what federal law permits.

So we'll see if she rules on both of those cases that will be heard before the Supreme Court.

The overall feeling? She's unpredictable on business interests, but certainly not an anti-business jurist. That's sort of the consensus now, but we'll see which way it goes, Don.

LEMON: CNNMoney.com's Poppy Harlow. Appreciate it, Poppy.

HARLOW: You got it.

LEMON: A proud military mom hangs an American flag in her office. An upset co-worker removes the flag, setting off a patriotic protest and a PR nightmare.

(COMMERCIAL BREAK)

LEMON: Abraham Lincoln wasn't just a wartime president. He was also a politician. In a recently surfaced letter, he wrote - well, it proves that. It was added today to the National Archives collection after being missing for more than a century. President Lincoln wrote the letter to try to help out a former U.S. Mint director whom he had appointed but who was later fired. Historians say the letter, dated 1863, shows Lincoln's keen interest in political issues even amid the Civil War. A private collector bought the letter at auction three years ago and has now donated to it National Archives.

(COMMERCIAL BREAK)

LEMON: OK. All right. We're taking a live look now. There is Air Force One, and this is Andrews Air Force Base. The president landing, I would imagine along with his staff. You know, the president we showed him here yesterday in Nevada talking clean energy, also going to California, and the president returning today. Those are live pictures of air force one just coming in. We'll be hearing more from the president a little bit later on and talking more politics right here in the CNN NEWSROOM and in CNN primetime this evening. President Obama returning from out west.

A woman hangs an American flag at the hospital where she works. A co-worker complains and then removes it. Instant outrage, right?

Here's the story now from our affiliate reporter at KTXA.

(BEGIN VIDEOTAPE)

DEBBIE MCLUCAS (ph), AMERICAN FLAG WAS REMOVED FROM WORK AREA: I am totally shocked.

CAROL CAVAZOS, KTXA-TV REPORTER (voice-over): Debbie McLucas, a hospital supervisor, is just sick about what happened to this.

MCLUCAS: It's a three foot by five foot flag.

CAVAZOS: Debbie hung it in her office at Kindred Hospital in Mansfield.

MCLUCAS: One person was offended.

CAVAZOS: She says another supervisor born in another country complained it was offensive and took it down.

MCLUCAS: I mean, I was. I was just totally speechless. I mean, it's like, you're kidding me.

CAVAZOS: Debbie's husband and sons are former military.

MCLUCAS: She told me it would be OK.

CAVAZOS: Her daughter is serving in Iraq.

MCLUCAS: I just wanted all those young men and women over there. I'm sorry, are really doing this for nothing.

CAVAZOS: Debbie says hospital higher-ups told her others had also complained.

MCLUCAS: I was told immediately it wouldn't matter if there was only one person, it has to come down.

CAVAZOS (on camera): As far as patriotism is concerned, Debbie said her bosses told her this should suffice, the flag outside their office.

(voice-over): Corporate hasn't made a final decision, though. Debbie hopes the American company, chosen as "Fortune's" most admired, will back her patriotism.

MCLUCAS: And I find it very frightening because, you know, if I can't display my flag, what other freedoms will I lose before all is said and done?

CAVAZOS: In Mansfield, Carol Cavazos, CBS 11 news.

(END VIDEOTAPE)

LEMON: All right, well since that piece was filed, Kindred Healthcare has actually issued two statements. In the first, the company said, "The supervisor was unhappy with the flag's size and that they had already invited McLucas to rehang her Star-Spangled Banner."

Now, just in to CNN, a statement from Benjamin Breier, the president of Kindred's hospital division. He says, quote, "We are offended one of our employees took down a colleague's American flag in our Mansfield, Texas hospital. It was wrong and as soon as we learned about it, we took immediate action to correct the situation. The flag is now proudly displayed once again, and we apologize to all who were equally offended by this unpatriotic action, including the owner of the flag. We have reprimanded the employee and let them know we don't tolerate behavior inconsistent with our Company's values."

So, thank you very much for watching today. I'm Don Lemon.

Oh, you know, we're not at the end, Rick. I saw you up there and I thought we were done. Rick Sanchez joining us now. Is this Rick cam? I haven't done the Rick cam.

RICK SANCHEZ, CNN ANCHOR: Did you think I was going to do my newscast over here?

LEMON: Listen, buddy, you never know with you. You drive your own ship and car, you do your own thing, so you never know.

SANCHEZ: I've done stuff like that.

Well, you know, let me tell you, you know, Father Alberto -- Father Alberto as we refer to him in Miami. He and I have known each other for many, many, many, many, many years. Going back to the Miami days. I know you keep a lot of your contacts from your Chicago days as I do were from my south Florida days. He was pictured on the beach with a woman romantically, problem, right?

LEMON: Right.

SANCHEZ: He's a Catholic priest. Well, guess what. There he is on the right of your screen now. He's being introduced by an Anglican bishop. The reason is he's about to announce, he hasn't done so yet, we'll see it when it happens. He's leaving the Catholic Church. He's now going to be an Anglican priest, the reason is, he's been saying, Don, this is interesting. He's in love.

LEMON: He loves that woman?

SANCHEZ: He loves that woman.

LEMON: That's what he says, he loves her.

SANCHEZ: He met someone there on Miami Beach. And...

LEMON: He can get married now as an Episcopalian priest?

SANCHEZ: Yes, he certainly can. It's an interesting story. Anybody can sit on the outside and judge him, and many people have. The fact of the matter is, it's his story. It's his reasoning. I guarantee you, it's a very difficult decision that he's come to, and he's going to take us through that decision. In fact, if we -- if it opens up, again, he hasn't started speaking yet, but you can see her. She's just to the left -- to his left, on the screen. First time we've ever seen her before, you know, and we have chosen not to really show her or use her name. You know, just out of respect.

LEMON: But she's there. You know what Rick, this is going to do...

SANCHEZ: There she is.

LEMON: ... because there are always pegs to this, and it always advances the discussion, probably in the Catholic Church about priests getting married and, you know, that if the Catholic Church should maybe consider that a priest get married. Because, you know, this priest was loved and a lot of people are saying Catholic Church is losing a good player here, right?

SANCHEZ: Look, it may -- let's not be foolhardy about this.

LEMON: It might start a discussion. I didn't say the Catholic Church would change it's mind.

SANCHEZ: The discussion will be there, but if you expect the Vatican to look at this and say we're going to change this, regardless of what happened...

LEMON: It won't happen.

SANCHEZ: .... or what you may think or I may think or Father Albert may think, let's be simple and plain about it, taint going to happen.

LEMON: I kind of like us like this, Rick, you and I hanging out here together.

SANCHEZ: I've always enjoyed hanging out with you, Don.

LEMON: All right, Rickie, we appreciate it. We'll see in - what? - less than four minutes. Thank you very much.

Rick will have the very latest of the story that he talked about in the priest down in Florida, what's happening with him, the lady who he says he loves by his side.

(COMMERCIAL BREAK)

LEMON: Moments ago we showed you Air Force One landing at Andrews Air Force Base. We want to take you now to pictures of the president getting off the plane there. President Barack Obama just coming back from a visit out west. Of course, we know he was in Nevada talking energy, solar energy, and then went on to California for a DNC fundraiser. President Barack Obama arriving back in Washington this afternoon.

I'm Don Lemon. Thanks for watching us. Rick Sanchez picks up the next hour of the CNN NEWSROOM right now.