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Troops Die, Insurers Profit; Rangel Vs. Ethics Charges; Speculation High Amid Rumors of Chelsea Clinton's Wedding; Fire in California, Storms in Arizona and Heat in the Southeast; Clerk Stops Robbery by Talking About Jesus; Man Gets Attacked by Cleveland Fans for Wearing Lebron James Miami Heat Jersey
Aired July 30, 2010 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Thanks, guys. Here's what we're working on this morning.
The congressional corruption club might have a new member. Could be a reversal of fortune for Charlie Rangel.
William Shatner, the captain, the negotiator, the guy who got an infamous killer to make a shocking statement.
Hey, Cleveland, you're with Lebron James, just ask this guy wearing King James Miami jersey. He didn't just get booed, he got the boot.
It's 9:00 a.m. on the East Coast, 6:00 a.m. out west. I'm Krya Phillips. You're live in CNN NEWSROOM.
This morning we begin with life and death as an American soldier. July, now the deadliest month for U.S. troops in Afghanistan. Sixty- three of our men and women in uniform lost in the last 30 days.
The most sacred place for our fallen heroes but so many of those whitehead stones dotting the hillsides of Arlington unmarked, mixed up, mishandled. Now life insurance companies accused of profiting off of troops' deaths, grieving families, missing the fine print and missing out on big money.
And surviving the battlefield but fighting a different war. Depression, drug abuse, suicide. It's all rising. The army steps up the defensive.
Let's start with the grieving families of our fallen heroes. They may be getting ripped off. They are entitled to a life insurance payment but the companies that handled those death benefit payouts are now accused of making millions of dollars in secret profits. And they are under investigation for the fraud.
Senior congressional or senior correspondent, rather, Allan Chernoff has been reading through all the fine print for us -- Allan.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Good morning. And the insurance companies are saying you do need to read the fine print but it's not really all that fine. It is laid out in the letters that are sent to beneficiaries of these life insurance policies.
The New York state attorney general Andrew Cuomo says he's investigating some of the major life insurance companies saying that these companies seem to be holding on to the death benefits instead of paying them out to people who have suffered horrific losses.
In many cases people who have lost soldiers who served their countries. Now, in many cases, some of these soldiers are due $400,000 in death benefits. Well, do the families get that money immediately?
Prudential Financial is the company that has been in business with the government doing these life insurance policies for four decades. And Prudential says to CNN yes, if somebody asks for the lump sum, they will get it. However, if you don't specifically ask for the lump sum, you'll get what looks like a checkbook from Prudential Financial.
And Prudential does say in its letter to the beneficiaries -- they say, this is a personal account. You can simply write a check for the amount you would like to withdraw.
Well, in some cases, there have been apparently complications. Some people don't fully understand how this works. And in some cases, checks have been written to retailers who would rather have a bank check than a life insurance check.
Nonetheless, this is an issue, as I said, still under investigation. Prudential Financial and other insurance companies are saying there's nothing wrong here at all -- Kyra.
PHILLIPS: So what about those interest rates paid on the account?
CHERNOFF: Correct. Prudential Financial is paying one-half of 1 percent on the interest on those accounts. Now obviously that's not a great rate. There aren't that many great rates out there for people who are holding bank accounts or accounts at insurance companies.
And of course what these major financial companies do is they take the money that is on deposit with them and they then invest it. Their major financial players and they're able to generate far greater returns.
So, yes, it certainly is true that these financial institutions are profiting with our money, with the money that is going to be paid out in terms of death benefits. The fact is that is the way that the industry works.
Some politicians may not like that. It may not smell very nice. Those are the simple facts -- Kyra.
PHILLIPS: Simple facts and a lot of families have a really hard dealing with those facts, indeed.
Allan, thanks. Now let's talk about Arlington National Cemetery. Heroes and their families can't catch a break there either. For the last few days, we've told you about dumped tombstones, mismarked graves, and maps that mislead people looking for their fallen loved ones.
The problem is worse than we thought, too. A Senate panel claims as many as 6600 graves at Arlington might be marked wrong, not marked at all or mislabeled on the cemetery maps. Earlier the Army thought that that number was more like 200.
So how could this happen? Accountability time. Senators grilled Arlington's retired superintendent John Metzler and his former number- two guy Thurman Higgenbottom.
(BEGIN VIDEO CLIP)
SEN. SUSAN COLLINS (R), MAINE: Mr. Metzler, if your staff is relying on these maps and these maps are inaccurate, and you're not disputing that the maps are inaccurate, then aren't family members going to have a difficult time finding the appropriate gravesite?
JOHN METZLER, FORMER CEMETERY SUPERINTENDENT: No, ma'am.
COLLINS: I've got to tell you, your answers make no sense to me whatsoever.
SEN. CLAIRE MCCASKILL (D), MISSOURI: In 2003, Mr. Higgenbottom, you knew there were mistakes that had been documented that reflected a lack of procedures of keeping track of where people were being buried in an accurate fashion.
And in 2005, Mr. Metzler, you knew that there were urns that had been uncovered in the field area of the cemetery. Now when you found those urns, Mr. Metzler, what did you do?
METZLER: We looked at the urns and we examined them to figure out if we could determine where they belonged in the cemetery.
MCCASKILL: And did you?
METZLER: No. We could not. There were no markings on the urns. There were nothing that would lead us to identify who these remains belonged to.
MCCASKILL: So you had no idea who they were?
METZLER: That is correct.
MCCASKILL: And you -- to this day you have no idea who they are?
METZLER: That is correct.
MCCASKILL: What we won't know at the end of this hearing is how quickly we can fix it and how we can repair the hole in the heart of so many families across this nation that are now going to wonder, is this really the gravesite of my love one? Is this really where they are buried?
And until we get this fixed, until we can stand tall with our shoulders back and say we have fixed the problems at Arlington National Cemetery, no one who has responsibility for this in the Army should rest.
And we are going to be -- make sure this committee that we stay on this until we're confident that all of the problems have been fixed.
(END OF VIDEO CLIP)
PHILLIPS: That bungling has been a disservice to the dead. And it's infuriated the living.
We had a powerful talk yesterday with a man's whose father's Arlington tombstone was dumped in a creek. He learned about it in the newspaper. He says he has no confidence in the cemetery's management and that his dad and everyone in that cemetery is due honor and respect.
Nearly a decade of war taking its toll. Army suicide rates on the rise. So are cases of depression, drug abuse, stress. We're going to take a closer look at the mental health of our fighting men and women and if they are getting the help that they need.
It's coming up in about a half an hour at 9:30 Eastern Time.
The 22-year-old Army private suspected of leaking tens of thousands of classified reports on the Afghanistan war is now locked up in a Marine brig in Virginia. Army intel analyst Bradley Manning was flown in from Kuwait as the military investigation on the WikiLeaks source zeros in on him.
Private Manning is already accused of leaking secret information to the whistleblowing Web site but the White House says the latest leak is putting lives at risk.
(BEGIN VIDEO CLIP)
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I will say that we were -- we were and still are concerned about names, operations, tactics, that are outlined in these documents that could put our soldiers at risk.
And also put those that are helping the United States military and our international coalition forces in Afghanistan, Afghans that are helping put them at danger, the Taliban spokesman saying just this morning that they are going through those documents and they know how to punish people that do appear there.
So that definitely puts our soldiers and those that are helping bring peace to Afghanistan at great risk.
(END OF VIDEO CLIP)
PHILLIPS: Meanwhile Defense Secretary Robert Gates says that he plans to tighten access to sensitive intelligence data.
Legendary Congressman Charlie Rangel has spent 40 years on Capitol Hill. But much of that legacy could be overshadowed by the events that are now unfolding. In a stinging indictment the House Ethics Committee accuses him of 13 violations.
The allegations range from jeopardizing the credibility of Congress, improperly accepting gifts, and other financial wrongdoing. The investigation ran nearly two years and amassed more than 28,000 pages of documents.
Here's just a sliver of that paperwork. I want to show you in some detail some of those accusations against Rangel. First, the money. The committee says that Rangel didn't report more than $600,000 on financial disclosure forms.
Remember this is the guy who oversees the committee dealing with taxes.
Then there's this. This is the future home of the Rangel Center for Public Service at the City College of New York. Yes. It's named after him and the committee says Rangel violated House rules by pressuring lobbyists and companies to donate money.
One company hit up was AIG, which was lobbying the House at the time. The committee says donors contributed more than $8 million to build that center where allegedly Rangel was supposed to have a well- furnished office.
Then there's allegations that he used an apartment in New York City as a campaign office. It's a rent subsidized apartment. That means it's supposed to be for people on a low income. And only for people who live in it.
Rangel didn't live there.
Then there's Rangel's villa in the Dominican Republic. This is a picture of Rangel sleeping outside the villa. It's in a nice yacht club. The committee says Rangel failed to report rental income from it for several years.
Here's Rangel responding to all those allegations against him.
(BEGIN VIDEO CLIP)
REP. CHARLES RANGEL (D), NEW YORK: If I struggle hard to find some good news in the statement of alleged violation I do get small comfort in knowing that there's no allegation that this is (INAUDIBLE) a bit of evidence that I have been guilty of corruption, wrongdoing, self-dealing, or any of the things that some of the reporters have been saying.
(END OF VIDEO CLIP)
PHILLIPS: All right. Let's head over to Capitol Hill. Congressional correspondent Brianna Keilar has been going through all these documents that well -- as well, rather.
So, Brianna, what happens next for Charlie Rangel?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, the question now, Kyra, is is there a deal in the process? And there are some indications that there could be because what we heard yesterday shortly just minutes before this hearing began from a colleague of Rangel's, a New York Democrat, was that he was close or his lawyers were close to reaching some sort of settlement with the Ethics Committee.
But the thing is Rangel himself told us then that he wasn't involved in a deal. But we saw the Ethics Committee meeting. And they met well into the evening. But they're so secretive, they obviously won't tell us if they're talking about Charles Rangel.
Listen to what Rangel himself said to us after the hearing yesterday.
(BEGIN VIDEO CLIP)
RANGEL: It's my understanding that it's the Ethics Committee itself that's working without my lawyers' involvement.
(END OF VIDEO CLIP)
KEILAR: So what he's saying there, it seems to be some sort of an indication that, you know, this is in the court of the Ethics Committee. The way this would work is if his lawyers had come to some sort of agreement with Ethics Committee lawyers, well, the whole committee would then have to approve any sort of settlement.
You've got four Democrats or you've got -- it split between Democrats and Republicans on this committee. So obviously Republicans would have to weigh in and OK it, Kyra. And so that's really the question, is would they do that?
PHILLIPS: All right. We'll follow the story with you. I know a lot of people eager to see what the next move will be.
Brianna, thanks.
And next hour, we should get a better idea of how BP plans to deal with the oil disaster in the months or years to come.
Incoming CEO Bob Dudley will look beyond the efforts to permanently seal the ruptured well. That process could begin this weekend. Gulf residents have voiced grave concerns that BP will slink away once the flow of oil is stopped for good.
BP has vowed that it will complete the cleanup and pay the residents and businesses who have lots billions of dollars in the disaster.
A former first daughter and her top secret wedding. Chelsea Clinton tying the knot tomorrow in upstate New York. We go live to Rhinebeck for all the latest details.
(COMMERCIAL BREAK)
(MUSIC PLAYING)
PHILLIPS: That's right. She's going to the chapel this weekend, tying the knot with fiance Marc Mezvinsky. But the details of the wedding extravaganza are top secret. Except a few of the tidbits leaked out.
Word is, it's going to take place at an estate in the tiny town of Rhinebeck, New York. We know that. And the wedding price tag, reportedly an estimated $3 million to $5 million. Imagine the home you can buy with that. Catering, $750,000. The cake, $11,000. Air- conditioned tents, $600,000. And, according to TMZ, $15,000 for porta-potties with porcelain toilets that flush, stereo music, and hot water. The bride's happiness, priceless.
CNN's Alina Cho live to Rhinebeck to get the wedding scoop now. Alina, so, what are you finding out?
ALINA CHO, CNN CORRESPONDENT: Well, not much. I mean, you've got a lot of information there, Kyra.
PHILLIPS: I can't get past the porcelain toilet porta-potties. I'm sorry, I just want to, bluh!
CHO: We're talking about America's political royalty, aren't we, Kyra? Good morning.
PHILLIPS: Oh, my gosh.
CHO: You know, as I have been say thing morning, this is really both the best-kept secret and worst-kept secret. You know, by now, everyone in the world assumes that Chelsea Clinton will get married here in the tiny town of Rhinebeck, about a half mile from here, right up the Hudson River, with a gorgeous view of the water.
But the Clintons aren't talking. They aren't confirming anything. Even at this eleventh hour, it's a guessing game, and speculation is running high.
(BEGIN VIDEOTAPE)
CHO (voice-over): On the eve of the wedding of the summer, involving the daughter of American royalty, tiny Rhinebeck, New York, 90 miles from Manhattan, is undergoing a transformation.
UNIDENTIFIED MALE SPEAKER: Sleepy little town. But it's not sleepy anymore.
CHO (voice-over): Now, Rhinebeck is a media mecca. Yet, nobody's talking because everyone involved in this top-secret wedding has signed a confidentiality agreement.
CHO (on camera): Prying a confirmation out of anyone around here is next to impossible. But take a walk around town, and the signs are literally everywhere. A toast to Chelsea and Marc. Congratulations to Marc and Chelsea.
CHO (voice-over): Chelsea Clinton and investment banker Marc Mezvinsky will reportedly wed on Saturday night at Astor Court, a 50- acre estate along the Hudson River. Many guests will reportedly stay nearby at the Beekman Arms, the oldest operating inn in America. A- listers like Oprah, Spielberg, and Streisand are expected to attend. The current president will not.
UNIDENTIFIED MALE SPEAKER: It's a big event for Rhinebeck.
CHO (voice-over): Jim Langan, editor of "The Hudson Valley News," broke the story.
JIM LANGAN, EDITOR, "HUDSON VALLEY NEWS": And this town has just been electrified by the whole thing.
CHO (on camera): It's crazy.
LANGAN: Insane. The only person they haven't interviewed here is the wooden Indian out in front of the cigar store.
CHO (on camera, asking cigar store Indian): Can you tell me who is officiating?
CHO (voice-over): Word on the street is Supreme Court justice Stephen Breyer will preside. Makes sense. He's a Clinton nominee. But again, we're just not sure.
CHO (on camera): Kind of fun speculating, isn't it?
LANGAN: Oh, it's great. This is the greatest game since Monopoly.
CHO (voice-over): CNN has confirmed the FAA will close the air space within 1.5 miles around Rhinebeck from Saturday afternoon until Sunday morning for what it calls "VIP movements."
CHO (on camera): Can you give me the inside track on anything about this wedding?
JOHN REGAN, OWNER, RHINEBECK DELI: We're not catering it. So that much I can tell you.
CHO (voice-over): John Regan owns Rhinebeck Deli, where this week they're serving up Chelsea's Choice Wrap, Bill's All-American sandwich, and Hilary's Secretary of Steak.
REGAN: The most popular is the Secretary of Steak.
CHO (on camera): Really? Why do you think that is?
REGAN: I really don't know. But --
CHO (on camera): You've got sirloin in there. CHO (voice-over): Rhinebeck has seen celebrities before.
UNIDENTIFIED MALE SPEAKER: Christie Brinkley.
UNIDENTIFIED MALE SPEAKER. Christie Brinkley was here.
CHO (voice-over): But nearly everyone will tell you this not-so- sleepy little town anymore has never seen anything quite like this.
LANGAN: I think it's the biggest thing to happen since the Washington's army drove the British out down the street in the 1700s. It doesn't get any bigger than this, and never will, I don't think.
(END VIDEOTAPE)
CHO: Some other little tidbits that we're hearing, Kyra, is that all guests will have to leave their Blackberries and cell phones at the door so that no unauthorized photos get out. The couple will reportedly register, or have registered, rather, under fake names. And some of the songs on the playlist at the reception reportedly, "Dancing Queen," "Billie Jean," and U2's "A Beautiful Day." Some of your favorite songs, Kyra.
I do have to tell you --
PHILLIPS: No "Chicken Dance?"
CHO: Speaking of beautiful days, the -- Not that I know of, no.
PHILLIPS: Oh, OK.
CHO: Listen, speaking of beautiful days, the weather forecast for tomorrow here in Rhinebeck is 82 and sunny. So it's just gorgeous weather and really perfect weather for a wedding.
PHILLIPS: Sounds like that's the cheapest thing on the agenda as well.
CHO: That's right.
PHILLIPS: All right. Alina Cho.
Ellen DeGeneres is also causing a buzz, not just Chelsea's wedding. She says she's leaving "American Idol" after one season. She says that it was a tough decision, but her work schedule just became more than she bargained for. On top of that, she said it's hard for her to give singers bad reviews. She just doesn't like hurting people's feelings.
So now, for the buzz after the buzz, J. Lo may replace her.
Rain soaked and ready to dry out. Parts of Phoenix, Arizona, cleaning up today after pretty nasty storms. Streets drenched, roofs of homes and buildings were damaged, including Arizona's Cardinal Stadium. From flooding to fires in California, I'll tell what you. Reynolds Wolf has his hands full. Have you ever been to that stadium, by the way, Cardinal Stadium?
REYNOLDS WOLF, AMS METEOROLOGIST: I've never been there. Driven by it a few times on stories, but never actually made it in there.
But what a weird contrast, that in places like Arizona, you've got the heavy rainfall, but right over towards the Golden State of California, no rain to speak of but plenty of fire. Let's show you some video that we have right from the area, taken last night. KTLA sent it in to us. You see the heat, you see the fire. It is just unbelievable.
At this time about 5,000 acres scorched. Mandatory evacuations in Ana Verde and also south South Palmdale. They've got about 5,000 acres, as I've mentioned, burned. Get this. Here's the big number. Zero percent containment. That is certainly some rough stuff.
But in speaking of the heat, we've got the fire out towards the west, and in the southeast, we've got heat of an entirely different variety. Let's go back to the magic wall. And as we do, you're going to see this area shaded in red in parts of the southeast. And it's red for a good reason. We've got a heat index that is expected for parts of the Carolinas, it's going to go to about 120.
Take a look at the temperatures we can expect, just surface temperatures. Charleston, out by the parade ground, the citadel, going up to 97 degrees, 102 in Hilton Head, 86 in Myrtle Beach. But when you bring in the high humidity, it's going to feel like it's anywhere from 100 to about 121 into the afternoon hours. We are talking about unbearable heat.
But something else to deal with could be chance of strong storms by late afternoon. Here into the central and northern plains, possibly some strong thunderstorm and maybe even hail producers, perhaps even a tornado or two may pop up by the late afternoon hours.
There's a quick snapshot at your forecast. Again, from the heat, to the fires, to the potential of some strong storms. It's another busy weather day. Back to you, Kyra.
PHILLIPS: All right, thanks, Reynolds. If you can't stand the heat, you'd better stay out of Cleveland.
(BEGIN VIDEO CLIP)
(INAUDIBLE SHOUTING)
(END VIDEO CLIP)
PHILLIPS: That's actually tame to what really happened. It takes a brave man to rub salt in the wounds of Lebron James' former fans. We'll tell you what happened.
(COMMERCIAL BREAK) PHILLIPS: Going cross-country from Ohio to Florida. First stop, somewhere in between. Charleston, South Carolina. 16-year-old Alex Stand now knows a thing or two about revenge. Just days after he was attacked by a shark and left 40 stitches in his leg, he went fishing. His prize catch of the day -- a four-foot shark that he says looked an awful like the one that attacked him. He kept the teeth as a trophy.
Next stop, Pompano Beach, Florida. Clerk is robbed and harnesses the power of faith.
(BEGIN VIDEO CLIP)
ROBBER: Don't get scared.
CLERK: I'm not.
ROBBER: Stay nice and calm.
CLERK: You know what? I know you can do whatever you want. I'm just going to talk with you about the Jesus I have.
ROBBER: What?
CLERK: The Jesus I've got, before you leave.
ROBBER: God bless you for that.
CLERK: I'm a Christian, and --.
ROBBER: So am I, and I absolutely hate doing this.
(END VIDEO CLIP)
PHILLIPS: And the story gets even more remarkable. The woman tells the gunman that she'll have to repay the money, so he has a change of heart. And he's leaving, he tells her it was only a BB gun.
Let's finish up in Cleveland, Ohio.
(BEGIN VIDEO CLIP)
(INAUDIBLE SHOUTING)
(END VIDEO CLIP)
PHILLIPS: That man's not dressed for success. He's dressed for a whooping. Goading former fans of Lebron James by showing off the jersey of King's new team, the Miami Heat. Not a smart move, pal. Security escorted the man out as the Cleveland faithful let loose.
War taking a toll on the mental health of our troops. Army suicide rates rising. So are cases of depression and drug abuse. What's being done to save our soldiers? Next.
(COMMERCIAL BREAK) PHILLIPS: It's the last day of trading of the month, and stocks have been pretty well so far. The Dow is up 7 percent in July, but today, we got a pretty weak report on recovery. The recovery, I guess you say.
Carter Evans is taking a look at that. Good, it's Friday, but not so great to report the business news.
CARTER EVANS, CNN CORRESPONDENT: Yes. At least it's Friday. We'll focus on that today.
PHILLIPS: OK.
EVANS: You know, that report is likely to take a bite out of gains today. Last hour, we learned that our economy grew at a slower than expected, 2.4 percent pace in the second quarter. That compares to a 3.7 percent increase in growth in first quarter. So, this Gross Domestic Product report is really the broadest measure of our economic activity. That's why it's so important. It includes a variety of things like some spending, imports, and exports, business spending, all that stuff.
The slow pace, basically, confirms what most of us are already feeling. The recovery is anemic at best. So, let's go ahead and look at the numbers and see how this is impacting things. The Dow currently down about 89 points, the Nasdaq off about 25, the S&P 500 off about 10. Real quickly, Kyra, yesterday we were talking about pizza. Today, I just want to let you know, National Cheesecake Day.
PHILLIPS: OK. Cheesecake I can stay way from. Pizza I can't. Now, is there any kind of special deal, though, going on with cheesecake that I should know about?
EVANS: Oh, yes. Yes. All sorts of deals. Half price of cheesecake factory here in New York. They're giving it away if you get an entree. Chicago and other location is giving it away. Cheesecake deals galore today. That's the good news.
PHILLIPS: OK. I love it. So, pizza and cheesecake all weekend. Sounds good. Thanks, Carter.
EVANS: Yes.
After a decade of war, our soldiers have been pushed to the edge. Just this one line in a 350-page army report stopped this in our tracks. Quote, "we are often more dangerous to ourselves than the enemy," end quote. And here's why. Last year alone, 160 soldiers died by suicide, one-third of soldiers take antidepressants, painkillers and the like. Amphetamine (ph) has doubled since 2006. Sex offenses have tripled in seven years. If those numbers don't astound you, take a listen to this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's like crack, you know. It's going to shot at. You can't come down. You can't top that. UNIDENTIFIED MALE: Are you going to go back to civilian world then?
UNIDENTIFIED MALE: I've no idea.
(END VIDEO CLIP)
PHILLIPS: So, what do we do? Brigadier General Colleen McGuire led the study. She's joining us live from the Pentagon. General, it's that one line, we are often more dangerous to ourselves than the enemy that is just heart wrenching. You know, why are soldiers dying by suicide and overdose and drunk driving more than combat?
BRIGADIER GENERAL COLLEEN MCGUIRE, U.S. ARMY: We've been looking at this as you know, Kyra, for the last 15 months. And we recognize that we got a growing population of those who are engaging in high- risk behavior, and what this report does is shines a light on that, and it exposes for our leaders what we need to do to fix it.
PHILLIPS: General, let's take a listen to one more soldier that was highlighted in the documentary that we pulled another clip from there at the beginning as he talks about what has happened to him since his experience. He's in war. Take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I prefer not sleeping, not dream about it and sleeping, and just see the picture in my head is pretty bad.
(END VIDEO CLIP)
PHILLIPS: What are your thoughts?
MCGUIRE: You know, I'm encouraged that he's talking about it. That's one of the things that we wanted to impress in this book is that we want to encourage help-seeking behavior. The more we can bring that to the attention of our leadership, but then also cut across the army and just eradicating this sense of stigma to seeking help, the better we'll get.
PHILLIPS: So, you know, we got so many men and women, general, in the military with all different kinds of personalities. You know, you hear from one that this young kid who talks about he doesn't even want to go to sleep because of the images that he has. And then you hear from that other soldier that says, you know, he gets this high from killing. What are you doing to deal with the soldiers who are predisposed to risk taking? Let me start there.
MCGUIRE: You know, we got a population of 1.1 million soldiers and that at-large are doing a tremendous job in their day-to-day lives.
PHILLIPS: And there's no argument to that. And you know how I feel about that.
MCGUIRE: Absolutely. PHILLIPS: We have incredible men and women in uniform. You're one of them. You're doing some amazing things for the army. But the problem is that these numbers are rising. And you know I talked about the suicide rate that is up, talked about PTSD and claims that aren't getting filed. I talked about psychological help that's not there for these men and women that are struggling. We talked about even the abuses at the VA hospitals where these men and women are not getting the care that they deserve.
So I don't -- we recognize how fabulous so many of our men and women are, but I think what so many people want to know with these numbers rising and seeing a report like this that is devastating to know that our men and women are having to turn to drugs to find peace, alcohol to find peace, dying by suicide because they can't find peace, what are you going to do to try to prevent this?
MCGUIRE: You know, the value of this report is that you got clearly nine chapters that talk about recommendations to deal with the effects of not only this tremendous up-tempo and amount of stress that we place on our young leaders and our soldiers, but that also addresses what we can do at headquarters level, dealing with policy, all the way down to the field and garrison environment. There are over 250 or nearly 250 recommendations that we are going to provide to the army staff and our senior leadership to look at getting down and handling this issue.
PHILLIPS: You know, 80 percent of the suicides happen when they get back home. Tell me what you're going to do with regard to psychological help because obviously, they're not getting adequate care when they get back. What are you doing before they head out to war and even more so when they come back?
MCGUIRE: I think what you're going to be finding is that our leaders more and more are taking this very seriously as they deal with bringing and integrating their soldiers back to post (INAUDIBLE) stations. Already, we've increased the number of chaplains available to the force. We've also increased the amount of behavioral help in the force. And we got so much more yet to do in order to integrate our soldiers when they come back home to ensure that they are ready to integrate back also, not only in their family but into the community, but in many cases, prepare to go back to war.
PHILLIPS: And of course, you pointed out something extremely important, too that from the highest level of the Pentagon to the commanders there on the front lines, they got to be sensitive to mental health issues and make these men and women feel comfortable talking about it and seeking help. General Colleen McGuire, really appreciate your time. I'm glad the study is out. And we'll follow up on what you're doing to be proactive. Really appreciate your time.
MCGUIRE: Thank you very much, Kyra.
PHILLIPS: You bet.
And politicians wonder why people don't trust them. Even if Charlie Rangel's completely innocent and clear of using his House seat to misbehave, the Congressional corruption club will still have plenty of members.
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PHILLIPS: Checking top stories. Next hour, we should get a better idea of how BP plans to deal with the oil disaster in the months or years to come. Incoming CEO, Bob Dudley, will look beyond the efforts to permanently seal the ruptured well. That process could begin this weekend.
Legendary congressman, Charlie Rangel, has spent 40 years on Capitol Hill but much of that legacy could be overshadowed by the events that are unfolding right now. In a stinging indictment, the House Ethics Committee accuses him of 13 violations. The allegations range from jeopardizing the credibility of Congress, improperly accepting gifts, and other financial wrongdoing.
And a heat wave sizzling in the southeast and Gulf Coast region. This weekend, the he index could top 100 degrees, and the certain areas you're looking at right now.
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PHILLIPS: The United States capital, you'll find it located in Washington, D.C., at the intersection of Howard and Green Street. Charlie Rangel's ethical issues remind us that broken trust and broken laws are more like a broken record in politics. He's accused of 13 ethics violations. If he's guilty, he joins a club with plenty of members. For example, California's Duke Cunningham, he took about $2 million big ones in bribes. And you got Louisiana's William Jefferson. Remember him and his freezer full of cash?
Then you got Ohio's James Traficant, the guy with the unforgettable hair, on the take and making his aides do chores at his farm. So, don't forget Dan Rostenkowski either and his army of ghost employees. Candy Crowley has covered them all. I know she got insight.
So, Candy, you would think after just one of these guys getting caught, that everybody would be checking they're six (ph), but no, it's still happening.
CANDY CROWLEY, CNN HOST, "STATE OF THE NATION": No.
PHILLIPS: Are the temptations just too great?
CROWLEY: Look, I think that the temptations are a lot greater in Congress than they are for you and I. Ok, so yes, I think the temptations are bigger. You are around power. You are around money. And not only that, you are seeing people and dealing with people who have great amounts of money.
And you look at their house and there's -- so there's just that kind of wow, look at this factor. Having -- none of these being excuses, just sort of explain the atmospherics of it. I think the other thing is that we know people get caught for speeding all the time. And we speed.
So -- and I think third of all, going along with that, there's always the feeling that you're not going to get caught.
And I think on Capitol Hill, I think some of -- some of what goes on and without speaking to what's going on with Charlie Rangel, because we don't know exactly what went on. We only know the charges.
But some of what goes on, they sort of think what was on this -- you know, would I do this? Isn't this -- they just -- they get it -- it's in the vents or something. They just get this, you know, entire idea, they're surrounded by people who are fawning over them and they begin to think they deserve it.
PHILLIPS: So what shocks you the most?
CROWLEY: How sad these stories are. I mean, let me -- two of the examples you talked about. First of all, Duke Cunningham; right before -- it turned out that he had, you know, antics and the different appointments on his boat, all these number of things, I had done a series on what it's like to go to war. And it was -- it was running up to the first Gulf war.
And Duke Cunningham is the flyer of who "Top Gun" the Tom Cruise character was modeled around. I mean, he advised in that movie. He was the top ace in Vietnam, so decorated. I sat down and talked to him and asked him, for instance, what it was like to kill someone.
And he started to cry. And he said it still gets me every time. It got me the first time. I think once it stops getting to you, you should quit. But I would do it again.
Charlie Rangel has won so many medals in the Korean War. He led a troop out from behind enemy lines. He was a high school dropout. He put himself eventually through law school, using the GI bill. He has served Harlem very well for 40 years. And then this and you think wow.
So here's this career and, you know, you just come to it and this brings them down. And I -- I find it enormously sad and enormously surprising.
Again, if the things they are saying about Charlie Rangel are true, I find it just amazing that Duke Cunningham wound up in the jail. I mean look at these lives -- it just is -- it's shocking to me.
PHILLIPS: And it's like -- it's like losing perspective on where you came from. Losing your roots, losing what brought you --
CROWLEY: Served our country. You know --
PHILLIPS: Yes.
CROWLEY: -- risked their lives. I mean, what is this about? I don't -- I don't fully get it. PHILLIPS: A point well made. It's always great to have you analyzing the news.
CROWLEY: Thanks, Kyra.
PHILLIPS: And giving a different perspective, Candy Crowley.
CROWLEY: Thanks.
PHILLIPS: We look forward to Sunday, "STATE OF THE UNION," every Sunday morning. Candy thanks.
We'll be back in a moment.
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PHILLIPS: Flashback, 2003, the last classic Volkswagen Beetle rolled off the assembly line in Pueblo, Mexico. The German company produced nearly 22 million since it debuted in 1939.
And also on this day in 1965 President Lyndon Johnson signed Medicare into law. That program provides hospitals and medical insurance to all Americans 65 and older.
Let's look ahead to the next hour. A lot going on this Friday morning. Let's check in with our team reporters to see what they're working on.
Let's begin with Reynolds Wolf -- Reynolds.
REYNOLDS WOLF, AMS METEOROLOGIST: Well, Kyra, the big story we're following weather-wise today is they cross 12 states. We're going to have temperatures this afternoon and it's going to feel it's into the 100s for millions of Americans.
Coming up we're going to let you know how long this heat wave is going to last. And what we can expect by early next week.
POPPY HARLOW, CNNMONEY.COM: And coming up the President heading to Michigan right now. He'll speak there this afternoon. The administration touting the government assisted bankruptcies of GM and Chrysler as a huge success story. We'll fast track all of that in the next hour.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: You could save a life by listening to the Bee Gees. I'll explain at the top of the hour.
PHILLIPS: And how many times does this happens? Someone throws a virtual grenade on the Internet, destroys people's character, their reputations, spreads lies, and these online character assassins get away with it; free speech gone wild.
Next hour, how to fight back and how to protect your privacy and keep your good name?
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PHILLIPS: A feeling of terrorism in Arizona. Strong words, but that's how some undocumented immigrants describe the fear factor surrounding the state's new immigration law. Thousands packed up and left the state even before a judge blocked key provisions of the law.
CNN's Thelma Gutierrez talked to some families who headed to New Mexico -- Thelma.
THELMA GUTIERREZ, CNN CORRESPONDENT: Kyra, I can tell thank you that even though the judge did block those controversial provisions, some of these families say they still are fearful about living here in Phoenix and so many of them wanted to flee before the law took effect. They say they actually feared that the sheriffs would put blockades and barricades up at the state's borders, so they wanted to get out before the law took effect.
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GUTIERREZ (voice-over): We watched them pack what they could carry, pieces of a former life that could fit into boxes.
UNIDENTIFIED FEMALE: I'll see you.
GUTIERREZ: We watched them say good-bye, undocumented immigrants, legal residents, even a United States citizen.
They told us they weren't just leaving Arizona. They said they were escaping.
Alfonso and Elizabeth left all their belongings in Phoenix. Sandra Soto left behind a career in Glendale. Samantha and Carlos gave up a home and business in Mesa. Pedro gave up a job in Chandler. And Pepe pulled his kids out of school there.
(on camera): But where are some of these families going? Well, we caught up with several families here in New Mexico. In fact take a look right here.
(voice-over): This family just arrived last night and they're still unpacking their things. This man we'll call Pedro says he was waiting until the last moment to leave Arizona, but when it looked like SB 1070 might go into effect, he says he couldn't risk being separated from his son. So they jumped into their SUV and fled.
(on camera): How many of you left because of this new law? Why did you come to New Mexico? Why this state?
UNIDENTIFIED MALE: Everyone escaping the terrorism in Arizona feels so welcome here.
UNIDENTIFIED MALE (through translator): We saw a homemade banner entering New Mexico that said welcome Arizonans. It said Mexicans are welcome in New Mexico.
GUTIERREZ (voice-over): The family's a recent arrival. They will told knee it was the first time in more than a year that people smiled at them, that a sheriff's car drove by without a second glance.
(on camera): You lived in Phoenix for 20 years?
SANDRA SOTO, MOVED TO NEW MEXICO: Yes.
GUTIERREZ: Do you miss it at all?
SOTO: No. Nothing.
GUTIERREZ: Nothing. You don't want to go back?
SOTO: Never in my life.
GUTIERREZ: Sandra Soto is a legal resident whose adult daughter is undocumented. She recently moved to Albuquerque because she says the fear in Arizona was stifling.
(on camera): You're in the country legally?
SOTO: Yes.
GUTIERREZ: You wouldn't be detained. You wouldn't be deported.
SOTO: Yes.
GUTIERREZ: Why did you feel that fear?
SOTO: Because the people make you feel that.
GUTIERREZ (voice-over): Arizona state senator Russell Pearce, author of SB 1070 says his law is doing exactly what it was designed to do, to force people to self-deport.
RUSSELL PEARCE, ARIZONA STATE SENATOR: $350 million in savings. There's a cost to this to the taxpayer, besides the destruction of law, besides the crime that comes with it, besides the jobs taken from Americans.
GUTIERREZ: But these families who were employed say they did not receive government services because the undocumented don't qualify. They claim because of their illegal status, even their American children were denied health care.
Like those families, Sandra says she will have to start all over again in a new state, but at least for now, she says, she'll have her family by her side.
(END VIDEOTAPE)
GUTIERREZ: Now, we talked to some of those families, and we asked them if this law is struck down at some point, though it hasn't been yet, would you consider coming back to Arizona? All of them said no. They would not.
They said the next stop would probably be Mexico, even those who were legal residents, Kyra. We thought that was very interesting. They said they lived with so much fear here in this state that they decided they will not be coming back.
PHILLIPS: Thelma Gutierrez, appreciate your report.
As we top the hour, we're talking about the Internet, virtually reaching into every corner of our lives. And there's a price to be paid for those digital interconnections.
It's a valuable platform of free speech but it can compromise our safety. Exhibit A: secret war information leaked.
(BEGIN VIDEO CLIP)
ADM. MIKE MULLEN, JOINT CHIEFS CHAIRMAN: Mr. Assange can say whatever he likes about the greater good he thinks he and his source are doing. But the truth is they might already have on their hands the blood of some young soldier or that of an Afghan family.
(END VIDEO CLIP)
