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White House Backs Reviewing Sherrod Case; Separating Fact From Firestorm; New Weapon in Gulf Cleanup Arsenal; Obama Signs Wall Street Reform into Law

Aired July 21, 2010 - 11:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Live from Studio 7 at CNN World Headquarters, the big stories for this Wednesday, July 21st.

Backpedaling time in the handling of Shirley Sherrod, the USDA official forced to resign over comments deemed racist. Agriculture Secretary Tom Vilsack says he'll take another look at the facts. Will Sherrod get her job back and an apology? Does she even want it?

(BEGIN VIDEO CLIP)

SHIRLEY SHERROD, FORMER USDA OFFICIAL: When I look back over the past couple of days, it seems so unreal.

(END VIDEO CLIP)

Plus, President Obama assigns a financial reform bill this hour that will directly impact your wallet. We'll explain the provisions that you need to know.

Good morning, everyone. I'm Fredricka Whitfield, in for Tony Harris.

These stories and your comments right here, right now in the CNN NEWSROOM.

What a difference a day of media frenzy makes. The Agriculture Department is reconsidering the case of an African-American employee pressured to resign over comments about a white farmer. It's a case about race and power, context and controversy.

Shirley Sherrod says the videotaped comments about an incident 24 years ago were misconstrued. She said she was actually speaking out against racial discrimination.

Agriculture Secretary Tom Vilsack released a statement saying, "I am, of course, willing and will conduct a thorough review and consider additional facts to ensure to the American people we are providing services in a fair and equitable manner."

The farmer in question and his wife came to Sherrod's defense. We heard from the farmer's wife, Eloise Spooner, while Tony was interviewing Sherrod live on television yesterday.

(BEGIN VIDEO CLIP) ELOISE SPOONER, GEORGIA FARMER: That ain't right. They have not treated her right. She's the one I give credit to helping us save our farm.

(END VIDEO CLIP)

WHITFIELD: And earlier today, CNN's Kyra Phillips asked Sherrod if she would return to the USDA if she were offered her job back.

(BEGIN VIDEO CLIP)

SHIRLEY SHERROD, FMR. GEORGIA DIRECTOR OF RURAL DEVELOPMENT, USDA: You know, my first reaction was I'm just not so sure. I don't know.

I've been receiving calls. I received a call this morning from the president of the NAACP in Douglas, Georgia, where I made that speech, and he said, "I just called you to say I wish you would consider, if they offer, going back." He said, "I think you can do even more for us at this point."

I hadn't looked at it in that light.

(END VIDEO CLIP)

WHITFIELD: And right now, the White House agrees the Sherrod case deserves another look.

White House Correspondent Suzanne Malveaux joins us live with that part of the story.

So, was the White House also on board? Did everyone seem to be in agreement on her resignation?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Fred, first of all, I want to apologize for some of the construction noise in the background there if it's difficult to hear me.

But certainly, as of yesterday, about 4:30 yesterday, a White House official told me essentially that they were not involved in this. They insisted that this came from Secretary Vilsack, and him alone, that it was not the White House that was contributing to this. We heard from the secretary who said the same thing.

And about two hours later -- it was about 6:30, between 6:30 and 7:00 last night -- the White House, another official, was still saying that the president was aware, he was briefed about the secretary's decision, and that he had his full support, that he agreed with this.

Now, fast forward, the overnight developments.

You had the NAACP releasing the full video. You had them putting out a statement saying that they had been snookered. The secretary came back. Vilsack, releasing a statement, said he was going to take a second look at all of this.

And then a White House official this morning told me this -- and I'm quoting, Fred -- that "We're not sure what the ultimate result will be, but it's clear that with new information, through the full speech, a longer look needed to be taken. The White House contacted the department late last night about the case and agreed, based on new evidence, that it should be reviewed."

Now, Fred, we're two hours away from this briefing with Robert Gibbs to try to get some answers. It has been radio silence here all morning on really some of the basics here, whether or not the president will pick up the phone and call Shirley Sherrod, whether or not we might even see him in a surprise appearance in the briefing room, if he's going to play any role in this.

We are going to have to wait and see. There are a lot of unanswered questions.

I was able to talk to Hilary Shelton of the NAACP this morning, and he said one of the things that happened yesterday that was so frustrating was trying to get that tape out of Douglas, Georgia, that little small branch of the NAACP. They found it around 11:00 or so in the morning, but they had to transfer it, get it on the Internet, that that took hours and hours.

They were so frustrated, Fred, that they literally played that tape over the phone and held the receiver up so that Ben Jealous, the head of the NAACP, could listen to that critical 45-minute segment of the tape. That's when about 4:00 in the afternoon, he picked up the phone and called Secretary Vilsack and said, look -- he described what was on the tape. He said that he thought there was information, evidence, that she should be reconsidered for her job.

It was not, however, Fred, until much, much later, well into the evening, close to early morning, that we got that Vilsack statement saying that they had, in fact, reversed their position -- Fred.

WHITFIELD: And so, Suzanne, if you are able to hear me, are you able to tell whether the White House feels satisfied that they have got some real clarity on the sequence of events that led up to Secretary Vilsack that office encouraging Sherrod to resign?

MALVEAUX: I think there's been an incredible amount of frustration on the part of the White House here, because obviously you had this window where you had the full tape that was stuck in one place and then started to basically be disseminated through the NAACP. They had the full story, full information.

It was not until about 7:00 or so that Secretary Vilsack had even access to that tape, the full tape that was on the Internet around that time. That was the time that the rest of us were getting that full tape, the public.

And so you can see where there was certainly a window where they did not have the full story. You had a statement from a White House as late as 7:00 last night still saying that the president had backed him on this.

So, clearly, Fred, there are still a lot of unanswered questions when it comes to this story. In less than two hours, we're going to bring it to you at that briefing.

WHITFIELD: All right. Thanks so much.

Suzanne Malveaux there at the White House.

Of course, a lot of questions that will be peppered to the White House at 1:00 Eastern Time, a press conference involving the spokesperson, Robert Gibbs. We'll of course carry that live.

All right. The twists and turns in the Shirley Sherrod reflect the volatile issues surrounding race and discrimination in America. But what's the real story at the heart of this latest controversy?

CNN's Lisa Sylvester does some fact-checking.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Here's part of the YouTube clip that set off the firestorm.

SHERROD: And here I was faced with having to help a white person save their land. So I didn't give him the full force of what I could do.

SYLVESTER: USDA official Shirley Sherrod admitting remarks at an NAACP event that she did not do everything she could to help a white farmer. That she took him to a white lawyer so, quote, "his own kind," would take care of him.

Conservative news outlets pounced. NAACP headquarters Monday called her actions shameful and her bosses at the Department of Agriculture forced her to resign.

But were they quick to judge? She says yes.

SHERROD: No, I did not discriminate against him. And in fact I went all out. I had to frantically look for a lawyer at the last minute because the first lawyer we went to was not doing anything to really help him.

SYLVESTER: We did some fact-checking. The incident in question happened more than two decades ago. Sherrod was not working for the government at the time, but a nonprofit called the Federation of Southern Cooperatives Land Assistance Fund. And the Internet clips were heavily edited.

And what about not doing enough to help the white farmer because he seemed to have a, quote, "superior attitude"?

Elle Louise and Roger Spooner credit her for helping save their farm.

ROGER SPOONER, GEORGIA FARMER: I know she did. I know that in my mind. UNIDENTIFIED REPORTER: Did she give you credit?

SPOONER: Surely did. I give her all the credit.

SYLVESTER: So why did she say the things that she did? Sherrod says in her speech she was reflecting on the past, the moment when she realized black and white farmers were facing the same plight.

SHERROD: This was my first time dealing with -- trying to help save a white -- have a white farmer save his land. I wasn't really sure what I could do. Because at that time I thought they had the advantages. I learned that that was not the case in working with this farmer.

SYLVESTER: The head of the nonprofit where Sherrod worked for more than two decades says that over the years she has helped all kinds of people.

RALPH PAIGE, FEDERATION OF SOUTHERN COOPERATIVES LAND ASSISTANCE FUND: Certainly she has not -- is not a racist. She did not discriminate against the woman and the family that she helped. And this was 26 years ago.

Shirley's always been a very dedicated person, dedicated to helping people. You know, and that is regards to race, color, clan, or whatever.

SYLVESTER (on camera): One person who attended the NAACP Freedom Fund banquet was the mayor of Douglas, Georgia, who is white. She says she left shortly before the speech, but she told CNN there were no mumblings in the community afterward about it being a racist speech. Mayor Jackie Wilson told me that she has interacted and dealt with Shirley Sherrod on several occasions, and Wilson says Sherrod treated people fairly.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: All right. Fast forward after the viewing of that tape and after it getting a lot of play on the Web. The NAACP was quick to condemn Shirley Sherrod. But after viewing the entire video, the civil rights organization reversed its position and said it was snookered.

President and CEO Benjamin Jealous says he personally apologized to Sherrod and he explained the group's initial reaction.

(BEGIN VIDEO CLIP)

BENJAMIN JEALOUS, PRESIDENT & CEO, NAACP: It was late at night, as you may recall. Our statement came out at, like, 1:00 a.m. that we were dealing with this.

We woke up some people in Georgia. We tried to figure out what was going on. We looked at it, and we said, you know what? There's just no way to condone this.

What we didn't realize is it had been sliced and diced six ways from Sunday, so as to completely hide this beautiful story of transformation that you see if you go to our Web site and you look at the full video.

(END VIDEO CLIP) WHITFIELD: Sherrod's story has a lot of people talking about race, power, politics. And we're hearing from you on our blog as well.

Keep sending your comments to CNN.com/Tony, and we'll be reading them over the next two hours.

(NEWSBREAK)

(COMMERCIAL BREAK)

WHITFIELD: All right. Day 93 of the Gulf oil disaster, and BP's critical pressure test on the capped well is in its sixth day now. Right now, still no sign of any serious breach, but there is a new threat to worry about.

Forecasters are keeping a close watch on a tropical wave in the Caribbean that is tracking toward Florida. And in the Gulf, there is a new weapon in the cleanup arsenal.

CNN's Rob Marciano is joining us live from Gulf Shores, Alabama, with more on that -- Rob.

ROB MARCIANO, CNN CORRESPONDENT: Hello, Fredricka.

As you mentioned, the cap remains strong here on day six. They'll continue to test it and see if they will try that static kill maneuver. Of course, when that happens, when they decide on that, we'll let you know.

There is an added piece of arsenal -- or weaponry, I should say, in the arsenal here battling the oil slick out there in the Gulf of Mexico. And yesterday we got a little taste of it.

A blimp borrowed from the Navy, combined with the Vessels of Opportunity on the ground, it is quite the coordinated effort.

(BEGIN VIDEOTAPE)

AMBER LYON, CNN CORRESPONDENT: We're just pulling up to the Coast of Gulf Shores, Alabama. Because this blimp just slides across the water, these guys have a great viewpoint. And when that -- when they spot anything wrong, they tell the pilots to then radio down to that vessel right there.

Rob Marciano's on that.

MARCIANO: And we are on the lead strike team vessel that's heading out to the Gulf of Mexico to work with ten other vessels of opportunities that are skimming out there and that -- that blimp that's going to help recon (ph) with us. So it's going to be quite an experience.

Lieutenant J.G. Scott McBride with me on the command vessel here. He was just on the horn getting some information. What can you tell us?

LT. SCOTT MCBRIDE, U.S. COAST GUARD: Basically, what's happening here is the air ship is conducting its search pattern. It's flying approximately 22 knots. And what's going to happen -- what's going to happen is it flies at 1,000 feet. Once it spots oil, it's going to descend to 500 feet to get a closer look.

LYON: Webb, where are we headed right now? WEBB MOORE, U.S. COAST GUARD MISSION SPECIALIST: We're actually going in, some skimmers have a report of medium to light oil so we're actually going to go there and find it.

These guys are picking up oil right here in these skimmers.

MCBRIDE: There is a little of a light sheen reported on the water and these guys, along with this strike team behind us, they are going to clean it up.

LYON: We're going to look right now at some boom. There's a boat down there laying that to protect the beautiful white sands of Gulf Shores, Alabama. They even have a book that shows pictures of exactly what they are looking for and there's name for all these kinds of oil. You got medium oil there, light oil, we even have what's called a streamer.

UNIDENTIFIED MALE: Roger that. Coming through with the boom in here. We were going to continue westbound about a half-mile offshore and meet up eventually with the four Morgan (ph) group.

UNIDENTIFIED MALE: Yes. Copy that.

MARCIANO: The workhorse in the Coast Guard Search and Rescue operations. And Steve Shore (ph), one of our photo journalists, is on top and riding around with them to give us yet another vantage point of how -- how all this is coming together.

LYON: I think what's most evident about the effects of this oil spill on the coastline is look at these beaches. Normally they're packed with tourists. And you're just seeing empty lawn chairs and umbrellas.

MOORE: We're going to see a lot of sharks that are pushed off. What's happening is the bait fish are coming closer to shore because of all the oil, so all the sharks, I mean, we've seen pods of 100-plus sharks at one time. I've never seen that in my entire life.

MARCIANO: The latest weapon in the arsenal to battle this oil spill, there's the airship heading back now to land. Seas here are getting way too rough to do any sort of effective skimming. So, at least for today, skimming operations have ended.

LYON: We just wrapped up day 12 of testing this blimp. There's about two weeks left, and then the Coast Guard will decide if they want to send this out in the field to hunt for oil permanently.

(END VIDEOTAPE)

MARCIANO: The problem with this spill is that there are so many different patches of it, getting a big tanker out here like they tried to do a couple of weeks ago just isn't go to work. So they have got over 700 individual skimmers out here, and the coordinated effort is just huge.

That blimp -- you know, I've seen so much waste here, Fredricka, or what seems to be waste, or burning of oil, ironically, so much gasoline and petroleum that's been used to battle this slick, ironically enough. That blimp barely uses any, relatively speaking. So it's one of the greenest ways, at least, and from a high vantage point, probably the best way to search for the oil spills from above -- Fredricka.

WHITFIELD: All right. Rob Marciano, thanks so much from a very windy Gulf Shores, Alabama. Appreciate that.

(WEATHER REPORT)

WHITFIELD: All right. An ex-agriculture official now finding herself in the middle of a national debate over racism. Shirley Sherrod explains how her views on the subject were shaped by tragedy.

(COMMERCIAL BREAK)

(NEWSBREAK)

(COMMERCIAL BREAK)

WHITFIELD: The U.S. Agriculture Department is reconsidering the case of an African-American employee pressured to resign over comments about a white farmer. Secretary Tom Vilsack released this statement about the Shirley Sherrod case, saying, "I am of course willing and will conduct a thorough review and consider additional facts to ensure to the American people we are providing services in a fair and equitable manner."

Sherrod says the speech that set off the controversy was actually against racial discrimination. She says her views were shaped by family tragedy. Her father was killed, allegedly, by white racists.

(BEGIN VIDEO CLIP)

SHERROD: The thing that happened to my father was so devastating to me, my sisters, my mother. My brother was born two months after he died.

The thing that happened there, the things that happened after his murder, but especially on the night that he died, you know, made me -- I knew I had to channel what I was feeling into something. I couldn't go and kill the person who killed him, and I prayed and came up with a decision with God that I would devote my life to working for change.

I didn't say -- well, I think early on, I think my thought was working for black people, but I realized over time, just like I tried to say in the speech, that it's not just about black people. You know, I couldn't spend the rest of my life just working on issues of black people. We live in this world with others, and just like I've worked to help white farmers, I've worked to help Hispanic farmers. I connected myself with farm groups and other organizations around the country. I didn't just have an impact right there in southwest Georgia.

(END VIDEO CLIP)

WHITFIELD: Well, a lot of you, of course, have been weighing in, sharing your thoughts about the Shirley Sherrod case on our blog. And here's what some of you are saying.

From Michael Covert, "Mrs. Sherrod has become a victim of knee-jerk reactive politics."

And Julian says this: "The White House needs to give this lady her job back and the NAACP owes her an apology."

And from LeVar, "I cannot accept what they have done to Mrs. Sherrod. If this is not fixed, I will also leave the NAACP."

And then Jim weighs in with this, saying, "I am a 73-year-old white man born in the South. I know racism when I hear and see it. Mrs. Sherrod is not a racist."

Thanks for your comments.

All right. Huge changes are coming to the nation's financial system. In just a few minutes, President Obama will sign the Wall Street reform bill into law. We'll bring that to you live, plus details on how it will impact you.

(COMMERCIAL BREAK)

WHITFIELD: We're now just minutes away from President Obama's signing of a sweeping financial reform bill into law. And one thing is certain -- it will directly impact your wallet.

Let's bring in Colin Barr of CNNMoney.com to explain exactly what we should all expect.

Hi, Colin.

COLIN BARR, CNNMONEY.COM: Good morning.

WHITFIELD: All right. So give us some examples of exactly how this bill is going to either protect consumers or at least impact us directly.

Well, I think a lot of people think the big move is that they've created a bureau that is specifically looking after consumers. We haven't had that before.

Previously, the agency in charge of watching the banks was the Fed, and the Fed has not done a good job of looking out for consumers. So now we have an agency that is supposed to do that, and that's a big change. WHITFIELD: And so here, this is where regulators will be able to, I guess, take down failing financial institutions if it comes to that, whereas before they didn't really have that kind of power.

BARR: Well, there is that. There certainly is that.

I think that the bigger thing for consumers is that you actually have an agency now that, depending on who leads it, could actually be an aggressive voice for consumers in pushing back against some of these ridiculous fees that the banks have slapped on consumers over the years.

There was the whole thing with the overdraft charges and people who were buying a cup of coffee and finding that it actually cost $42.95 because of overdrafts. And so I think the assumption is if they get somebody who's very aggressive in looking after consumer's interests, that we will be seeing that so much anymore.

WHITFIELD: All right. So what do we know about the woman who may be that person, Elizabeth Warren, leading this consumer protection bureau?

BARR: I think there is some doubt about whether she's going to be chosen. The opponents of the banks, especially on the left would like to see her appointed because she has made no bones about the fact that she thinks the banks have ripped people off and that needs to stop.

So if she were named to this position, I don't think there's any doubt we would have aggressive pushback against the banks. There's a sense that the administration does not want someone that aggressive. Obama has been criticized from being too friendly to the banks. Tim Geithner is seen in some circles as being in the pocket of the banks.

One of the candidates Michael Barr -- no relation to me -- he's seen nor in line with the administration's view on this. So I think there's some sense he might be the front-runner even though Elizabeth Warren is the more popular choice, I think.

WHITFIELD: OK. And let's talk about Bank of America. They didn't necessarily have a good second quarter.

BARR: Not necessarily, no.

WHITFIELD: What kind of indicator is this for what's next?

BARR: Well their stock has really been hit over the last week and they made a big point of kind of issuing a sob story about how this legislation was going to hurt their profits. Boo-hoo, I guess is what we're supposed to say there.

They're talking about billions of dollars they'll lose in fees. I think that history shows that over time they'll find a way to make money. And whether that means you will get charged for your checking account or whether you get charged for talking to a live help desk person when you can't get into your online account, these guys will find a way to make that money back.

There's no question that right now that the profits on Wall Street are going to fall and I think a lot of people think that it's about time.

WHITFIELD: OK. Colin Barr, thanks so much.

And while you were talking we see at the bottom of the screen, all the players getting into place. Everyone from Harry Reid, we saw Nancy Pelosi, Chris Dodd, Barney Frank, Tim Geithner. All of them taking their positions there on stage awaiting the president to arrive where he will be signing this Wall Street reform bill into law.

And, of course, as that happens, as the president emerges, we'll take it live.

Meantime, Colin, thanks so much.

BARR: Thank you.

WHITFIELD: We're going to take a short break for now. Much more of the NEWSROOM after this.

(COMMERCIAL BREAK)

WHITFIELD: Straight to Washington. Now President Barack Obama just about to sign that Wall Street reform bill into law.

But first a few words from the president.

(JOINED IN PROGRESS)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Thank you, everybody. Thank you. Thank you. Everybody, please have a seat. Have a seat.

Well, good morning, everyone.

CROWD: Good morning.

OBAMA: We are gathered in the heart of our nation's capital, surrounded by memorials to leaders and citizens who served our nation in its earliest days and in its days of greatest triumph. Today is such a time for America.

Over the past two years we have faced the worst recession since the Great Depression. Eight million people lost their jobs. Tens of millions saw the value of their homes and retirement savings plummet. Countless businesses have been unable to get the loans they need and many have been forced to shut their doors. And although the economy is growing again, too many people are still feeling the pain of the downturn.

Now, while a number of factors led to such a severe recession, the primary cause was a breakdown in our financial system. It was a crisis born of a failure of responsibility from certain corners of Wall Street to the halls of power in Washington. For years, our financial sector was governed by antiquated and poorly enforced rules that allowed some to gain the system and take risks that endangered the entire economy.

Unscrupulous lenders locked consumers into complex loans with hidden costs. Firms like AIG placed massive, risky bets with borrowed money. And while the rules left abuse and excess unchecked, they also left taxpayers on the hook if a big bank or financial institution ever failed.

Now, even before the crisis hit, I went to Wall Street and I called for common sense reforms to protect consumers and our economy as a whole. And soon after taking office, I proposed a set of reforms to empower consumers and investors to bring the shadowy deals that caused this crisis into the light of day. And to put a stop to taxpayer bailouts once and for all.

(APPLAUSE)

Today thanks to a lot of people in this room, those reforms will become the law of the land. For the last year Chairman Barney Frank and Chris Dodd have worked day and night.

(CHEERS AND APPLAUSE)

Barney and Chris have worked day and night to bring about this reform. And I am profoundly grateful to them. I would be remiss if I didn't also express my appreciation to Senator Harry Reid and Speaker Nancy Pelosi for their leadership. It wouldn't have happened without them.

(APPLAUSE)

You know, passing this bill was no easy task. To get there, we had to overcome the furious lobbying of an array of powerful interest groups and a partisan minority determined to block change.

So the members who are here today -- both on the stage and in the audience -- they have done a great service in devoting so much time and expertise to this effort. To looking out for the public interests and not the special interests.

(APPLAUSE)

And I also want to thank the three Republican senators who but partisanship aside, judged this bill on the merits and voted for reform. We're grateful to them.

(CHEERS AND APPLAUSE)

And the Republican House members.

Good to see you, Joe.

(APPLAUSE)

Now, let's put this in perspective. The fact is the financial industry is central to our nation's ability to grow, to prosper, to compete and to innovate. There are a lot of banks that understand and fulfill this vital role. And there are a whole lot of bankers out there who want to do right and do right by their customers.

This reform will help foster innovation, not hamper. It is designed to make sure that everybody follows the same set of rules so that firms compete on price and quality, not on tricks and not on traps. It demands accountability and responsibility from everyone. It provides certainty to everybody from bankers, to farmers, to business owners, to consumers. And unless your business model depends on cutting corners or bilking your customers, you've got nothing to fear from reform.

(APPLAUSE)

Now, for all those Americans who are wondering what Wall Street reform means for you, here's what you can expect. If you've ever applied for credit card, a student loan, or a mortgage, you know the feeling of signing your name to pages of barely understandable fine print. What often happens as a result is that many Americans are caught by hidden fees and penalties or saddled with loans they can't afford.

That's what happened to Robin Fox (ph), hit with a massive rate increase on her credit card balance even though she paid her bills on time. That's what happened to Andrew Giordano (ph), who discovered hundreds of dollars of overdraft fees on his bank statement, fees had he no idea he might face. Both are here today.

Well, with this law, unfair rate hikes, like the one that hit Robin, will end for good.

(APPLAUSE)

And we'll ensure that people like Andrew aren't unwittingly caught by overdraft fees when they sign up for a checking account.

(APPLAUSE)

With this law, we'll crack down on abusive practices in the mortgage industry. We'll make sure the contracts are simpler. Putting an end to many hidden penalties and fees in complex mortgages so folks know what they're signing. With this law, students who take out college loans will be provided clear and concise information about their obligations. And with this law, ordinary investors, like seniors and folks saving for retirement, will be able to receive more information about the costs and risks of mutual funds and other investment products so they can make better financial decisions as to what will work for them.

So all told, these reforms represent the strongest consumer financial protections in history. In history.

(APPLAUSE)

And these protections will be enforced by a new consumer watch dog with just one job -- looking out for people, not big banks, not lenders, not investment houses -- looking out for people as they interact with the financial system. And that's not just good for consumers, that's good for the economy. Because reform will put a stop to a lot of the bad loans that fueled a debt-based bubble. And it will mean all companies will have to seek customers by offering better products instead of more deceptive ones.

Now, beyond the consumer protections I've outlined, reform will also rein in the abuse and excess that nearly brought down our financial system. It will finally bring transparency to the kind of complex and risky transactions that helped trigger the financial crisis. Shareholders will have a greater say on the pay of CEOs and other executives so they can reward success instead of failure. And finally, because of this law, the American people will never be asked again to foot the bill for Wall Street's mistakes.

(APPLAUSE)

There will be no more tax-funded bailouts period.

(APPLAUSE)

If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. And there will be new rules to make clear that no firm is somehow protected because it is too big to fail so we don't have another AIG. That's what this reform will mean.

Now it doesn't mean our work is over. For these new rules to be effective, regulators will have to be vigilant. We may need to make adjustments along the way as our financial system adapts to these new changes and changes around the globe.

No law can force anybody to be responsible, it's still incumbent on those on Wall Street to heed the lessons of this crisis in terms of how they conduct their businesses.

The fact is every American from Main Street to Wall Street has a stake in our financial system. Wall street banks and firms invest the capital that makes it possible for start-ups to sell new products. They provide loans to businesses to expand and hire. They back mortgages for families purchasing a new home. That's why we'll all stand to gain from these reforms.

We all win when investors around the world have confidence in our marks. We all win when shareholders have more power and more information. We all win when consumers are protected against abuse. And we all win when folks are rewarded based on how well they perform, not how well they evade accountability.

In the end our financial system only works, our market is only free when there are clear rules and basic safeguards that prevent abuse, to check excess, that ensure it is more profitable to play by the rules than to game the system. And that's what these try forms are designed to achieve. No more, no less. Because that's how we will ensure that our economy works for consumers, that it works for investors, that it works for financial institutions, that it works for all of us. This is a central lesson not only of this crisis but of our history. Ultimately there is no dividing line between Main Street and Wall Street. We rise and fall together as one nation. So these reforms will help lift our economy and lead all of us to a stronger, more prosperous future. And that's why I'm so honored to sign these reforms into law and I'm so grateful to everybody who worked so hard to make this day possible.

Thank you very much, everybody.

(APPLAUSE)

(END OF COVERAGE)

WHITFIELD: All right. President Barack Obama there signing into law now Wall Street reform, as you just heard him saying partisanship was put aside to make this the new law of the land. Wall Street reform, which means regulators can take down failing financial firms and create new consumer protection, like addressing what the president called, unfair rate hikes, just to name a few there.

Of course, standing over his shoulder, Chris Dodd and Barney Frank who authored this, along with a number of other people. But their names are on this Wall Street reform bill now being signed into law.

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WHITFIELD: All right. Harsh criticism coming from the man policing the government's $700 billion troubled asset relief program, or TARP. Neil Barofsky is testifying right now at a Senate Finance Oversight hearing. He says even though the bailout program may be winding down, government support for big banks and the economy has not. Barofsky criticizes the Treasury Department for its lack of transparency. He is particularly critical of the department's handling of a program designed to make homes more affordable.

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NEIL BAROFSKY, SPECIAL INSPECTOR GENERAL, TARP: Treasury has continued indications that this is a successful program, without identifying these goals and benchmarks is simply not credible. And I fear that the growing public suspicion that this program is an outright failure will continue unless and until Treasury adopts this recommendation and comes clean with what its goals and expectations are.

(END VIDEO CLIP) WHITFIELD: In Louisiana next hour, a rally against President Obama's moratorium on new, deepwater oil drilling. Governor Bobby Jindal will join opponents at the ban at the rally in Lafayette. The event's organizers claim the moratorium is directly impacting more than 75,000 jobs. Louisiana is one of the nation's biggest oil and gas producers. From Britain, reports that BP's chief executive Tony Hayward will step down within the next 10 weeks. The " Times of London" says there is a growing expectation that Hayward will announce his departure late next month. or in September. A BP spokesman says there is no truth to the article and Hayward is not leaving.

And here are the stories we're working on for the next hour of the NEWSROOM. A billion-dollar system for black farmers is held up in Congress. What's the sticking point? I'll talk with a fourth generation farmer who is heading up that fight.

And very rough flight for dozens of passengers headed to L.A. They are nursing injuries this morning. What caused such bad turbulence? CNN meteorologist Chad Myers will explain exactly what happened after this.

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WHITFIELD: The Kindle, the nook, the names are cute but the competition among these e-readers is serious business. And it's getting even tighter with the introduction of apple's iPad.

Megan Hughes has more on the high-tech book battle.

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MEGAN HUGHES, CNN CORRESPONDENT (voice-over): When you hit the beach this summer, what kind of book will you bring? Old-fashioned paper back or high-tech e-reader. While some prefer not to hop on the e- train --

UNIDENTIFIED FEMALE: There is something about holding a book in n my hands. I'm looking at the cover and turning the pages.

HUGHES: Others have grown to love the edge the devices have to offer.

UNIDENTIFIED MALE: Not needing to ship around dead tree bark.

HUGHES: Or the fact that you can buy new books without hitting a book store.

UNIDENTIFIED MALE: You can load it from the airplane or airport or while you're on a cruise ship.

HUGHES: And now with lower prices more people can get on board before getting away. Sony, Barnes and Noble and Amazon have shaved the price of their e-reader to under $200.

( on camera): Barnes and Noble exec say part of the reason for the price cut was a big summer reading push. But another reason could be a pricier and higher-tech competitor with the introduction of the iPad.

UNIDENTIFIED MALE: You just touch the corner and it'll flip to the next page. HUGHES (voice-over): IPads boast color touch screens and have a lot more uses, but carry starting price tag of $500. Compare that to a $15 paperback bestseller.

Market analyst Michael Norris (ph) says that's why less than 10 percent of the population bought an e-book last year. There are still some bonuses to books at the beach.

In Washington, I'm Megan Hughes, for CNN.

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