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Deadly Protests in Bahrain; Berlusconi Sex Scandal; Amanda Knox's Parents Charged With Libel in Italian Courts; Borders Files for Bankruptcy; Bernie Madoff Gives First Interview since Arrested; Anti- Government Protests Still Boiling in Middle East and North Africa; Berlusconi Sex Scandal; Driving Away Goblins; $1 Million Pot Seized
Aired February 16, 2011 - 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: Hey, guys. Good morning.
Two major stories unfolding this hour. On the left, a volatile mix of anger, optimism and death. In Bahrain, thousands of people mourn the killing of a pro-democracy protester and nervous U.S. ally vows justice.
On the right Bernie Madoff. Was justice served in the case of the Wall Street swindler? Well, in a new interview, Madoff says banks just chose to look the other way.
But we do begin in Bahrain this hour. One of the Arab nations dealing with protests and a surging anger among its citizens. It's also a critical U.S. ally in the region.
The pro-democracy protest had been peaceful earlier this week until the government launched a brutal crackdown. At least two protesters have been killed and today the government is vowing justice.
"New York Times" columnist Nick Kristof is there. He's on the phone with us.
So, Nick, what are you seeing today?
NICHOLAS KRISTOF, NEW YORK TIMES COLUMNIST: Well, the protest began really with people demanding just some kind of modest steps towards reform. But people were hugely antagonized by the way the government did, backed down on people protesters, firing teargas, rubber bullets, and in some cases shotgun pellets at them.
And the result is that increasingly, we're hearing demands not only for a step-by-step reform but really in effect for the overthrow of the ruling Khalifah family. The police seemed to have backed off for now. I think the -- I think the regime was really shaken by what has happened and so the police have backed off but nobody knows how long that will be for and protesters have taken over a central square in the middle of the city and turned it into something reminiscent to Tahrir Square.
PHILLIPS: And, Nick, does that surprise you? Because -- I mean obviously you're there, you've been there before. I've even been there a number of times before during, after the various wars.
This is a huge U.S. ally. I mean this is where the Navy's 5th Fleet is based. And when you stay there, when you eat there, when you walk the streets, you feel like you're in a U.S. city.
So what do you think is going on here? Because it's very different. Life is very different here versus Cairo.
KRISTOF: That's right. I mean, that's really one of the most admirable things about Bahrain. This is a -- really an oasis of moderation and education and tolerance in the region. But I think in a sense that is what the ruling family didn't take account of. They presided over a huge extension of the middle class, a huge increase in internationalization.
And they -- you know, they created a population that aspires to a real voice and (INAUDIBLE). And not simply the kind of token consultation that they are granted. And so by Gulf standards, Bahrain does OK politically, but people don't want gulf standards, they want real democracy.
PHILLIPS: We'll follow it. Nick Kristof, thanks so much for calling in.
And as Nick and I were talking about, the Kingdom of Bahrain is a tiny island nation right there in the Persian Gulf and it plays a huge role in U.S. military strategy. For years, it served as the headquarters for the Navy's 5th Fleet. The reach of the 5th Fleet is truly staggering, too -- 2.5 million square miles of water and on land 20 different countries.
That area also includes critical choke points for international shipping including the Suez Canal and the Strait of Hormuz.
Well, the anti-government protests have swept through more than a half dozen Arab countries in the region. Libya, demonstrators chanting against the long-time leaders, saying, quote, "Qhadafi is the enemy of god."
An independent source in the country tells CNN that the protest turned violent today in one coastal city when police clashed with the crowds. The same source says that the government is conveying the message that grievances will be addressed but calls for the overthrow of the regime will not be tolerated.
And tensions are also running high in Iran where thousands of people gathered for the funeral of a man killed in anti-government protests. But here's the twist. Many of the so-called mourners tried to rally support for the government. They shouted anti-American slogans and said that the man was killed by an outlawed group that has opposed the government for decades.
Iran's leaders have praised Egypt's revolution but are cracking down on these demonstrations. Last night, one protest spoke to CNN's Anderson Cooper.
(BEGIN VIDEO CLIP)
SARA, IRANIAN PROTESTER IN TEHRAN: Well, yes, they did not let us proceed, we had to kind of fight to make our way but at some point, we couldn't -- I mean there was too much violence so we couldn't proceed.
ANDERSON COOPER, CNN'S ANDERSON COOPER 360: We've heard reports of police using tear gas, using batons to beat demonstrators, making arrests. Did you see any of that?
SARA: Oh, yes, that's what we see.
(END OF VIDEO CLIP)
PHILLIPS: Well, the crowd at today's funeral called for the prosecution of two opposition leaders and yesterday (INAUDIBLE) called for that as well.
Corruption, fraud, sex parties, underage prostitutes. What else can the Italian playboy prime minister be accused of? Who knows? But what we can tell you is that Silvio Berlusconi's well-documented libido has brought hundreds of thousands of women to the streets protesting the way that they are treated by society and their prime minister.
A judge has ordered Berlusconi to stand trial on charges that he paid for sex with an underage prostitute, then tried to cover it up.
CNN's Dan Rivers actually got an exclusive interview with the madam being investigated for securing prostitutes for Berlusconi. Dan is in Milan.
So what did you find out, Dan?
DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, this is the first time Nicole Minetti has sat down and given her side of story in front of TV cameras. Essentially she is denying all of the allegations and investigations against her that she was essentially pimping for Silvio Berlusconi for these lurid parties at his villa outside of Milan where I am now.
Let's have a little (INAUDIBLE) about that interview where I'm talking to her about the exact relationship of her relationship with the prime minister.
(BEGIN VIDEO CLIP)
RIVERS (on camera): So you would deny ever having received any money from Silvio Berlusconi?
NICOLE MINETTI, LOMBARDY REGIONAL COUNCILOR: Well., he helped me in some -- in some situations. I mean he's -- he doesn't have any problems helping people even in an economic way.
RIVERS: How much money did he give you?
MINETTI: That's a detail which I wouldn't go into.
RIVERS: But thousands of Euros?
MINETTI: It doesn't matter. That's not the -- that's not the matter.
RIVERS: Well, some people say it does matter because it would suggest that he was either paying for your services or paying to keep you quiet.
MINETTI: Or he was helping me just because he cared for me. It could be one thing or the other.
RIVERS: How would you describe your relationship with the prime minister?
MINETTI: I had an affectionate relationship, meaning as someone that you care for and cared for you.
RIVERS: But not an improper relationship, a sexual relationship?
MINETTI: I wouldn't go into those details. Those are private details. Private details.
(END OF VIDEO CLIP)
RIVERS: So Nicole Minetti side-stepping the critical question of exactly whether she had had a relationship with Silvio Berlusconi saying those are private details. But Berlusconi himself has angrily denied all of these accusations the ones in the indictment that he paid a 17-year-old prostitute for sex, that he then abused his power by trying to cover it up effectively, trying to get her released from police custody.
This morning, he held a press conference. Only briefly touched on the indictments, saying that he wasn't worried about them, that -- you know, he had a majority in government that he expected the government to last until the end of its mandate.
So really he's just trying to bluster this one out. But the allegations are dominating the media here and abroad.
PHILLIPS: And obviously, it's dominating a lot of what we're talking about as well, Dan. We'll continue to follow it.
Well, a broad daylight attack on a well-traveled road leaves one U.S. immigration agent dead and another wounded in Mexico. The two ICE or Immigration and Customs Enforcement agents were about 23 miles north of Mexico City when they were forced off the road, surrounded by a group of more than 10 people.
We're told that those agents were doing routine work and driving in an armored vehicle with diplomatic tags.
United Airlines hoping to get all of its Boeing 757s back in the air today. United grounded the whole fleet -- that's about 100 airplanes -- to do some unscheduled maintenance. Well, the airline says it needs to check recent upgrades to air data computers and they measure things like temperature and air pressure.
Those checks take about an hour per plane. Some flights could get canceled today because of this.
Members of Obama administration standing out across Capitol Hill today to defend the president's budget proposals.
Defense Secretary Robert Gates and chairman of the Joint Chiefs Mike Mullen will appear before the House Armed Services Committee next hour. Later this afternoon Treasury Secretary Timothy Geithner will go before the House Ways and Means Committee to talk about the president's plan.
We're going to monitor both of these hearings as members of Congress press the president for specifics.
All right. West Coast getting a taste of everything on the weather front. Wind, rain, snow.
Meteorologist Rob Marciano has it all.
ROB MARCIANO, AMS METEOROLOGIST: That's where all the action is.
PHILLIPS: All the action.
MARCIANO: And because of that, you know, we're pretty quiet east of the continental divide, that's for sure.
(WEATHER REPORT)
MARCIANO: KCRA, that's one of our affiliate reporters, I'm not sure who it is because I can't see through all the snow and all -- everything he's covered up on. But nonetheless --
PHILLIPS: Poor guy.
MARCIANO: I know how you feel there, pal.
PHILLIPS: It's reminding me of Green Bay, Wisconsin, and probably reminding you of Portland, Oregon, right?
MARCIANO: Yes. Yes. Very much so. And that's -- you know, kind of a wet snow there in the Sierras, at least at that elevation. But it's coming down pretty good and right there in Blue Canyon on the way up to Truckee, they're getting dumped on.
PHILLIPS: Those were always the assignments where we went, oh, man, I pulled the short straw on that assignment.
MARCIANO: Well, maybe for you. I get kind of excited about. Yes.
PHILLIPS: You love it, exactly. I'm thinking what the hell did I do wrong? So do you watch the Westminster Dog Show?
MARCIANO: I watch the highlights.
PHILLIPS: Really? You do?
MARCIANO: I saw "Best in Show," the movie, I thought that was fabulous and hilarious. So it's hard for me to watch it in a straight face now, I guess.
(CROSSTALK)
MARCIANO: Who won (INAUDIBLE) this year?
PHILLIPS: Well, here's the announcement. Let's take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Best in Show is the deerhound.
(END OF VIDEO CLIP)
PHILLIPS: Apparently, people were saying it's not a very attractive dog. Can you get a look at it?
MARCIANO: Well, it's called a deerhound so.
PHILLIPS: Yes. And its name is Hickory. Apparently it's the first ever Scottish deerhound to win Best in Show.
MARCIANO: Cool.
PHILLIPS: Yes. There we go. You kind of get --
MARCIANO: That's a good-looking hound.
PHILLIPS: Yes? Five years old from Virginia. Hickory's handler it's -- the handler, rather, said it's just the thrill of a lifetime, obviously. And Hickory goes to Sardy's, by the way, for a steak lunch later today.
MARCIANO: That --
PHILLIPS: I wonder if they'll put a caricature up there at the restaurant as well.
MARCIANO: Those are the highlights we need to see.
PHILLIPS: Exactly.
MARCIANO: A Scottish deerhound having a steak. That's fabulous.
PHILLIPS: Gosh. All right.
MARCIANO: They take it pretty serious. The dogs are beautiful.
PHILLIPS: Yes, I know. Big time. All right.
MARCIANO: Congratulations.
PHILLIPS: Thanks, Rob, for playing.
MARCIANO: You bet.
PHILLIPS: All right.
Well, no more steaks at Sardy's for Bernie Madoff, that's for sure. America's premier swindler is enjoying the prison slop in North Carolina and he's talking about his scam for the first time. And get this, he's saying that the banks had to know what he was up to and that they just ignored it. That's our talker this morning coming up.
Plus an American student convicted of murder in Italy. Now her parents face charges of their own. But Amanda Knox's mother says she's not backing down.
(COMMERCIAL BREAK)
KYRA PHILLIPS, CNN ANCHOR: Going Cross Country for a little basketball and senior night at Old Forge High School in Lackawanna County, Pennsylvania. Applause and tears filled the school gymnasium when Kiel Eigen walked for the very first time five years after injuring his spine in a football game. Eigen says he always knew he would defy the odds and walk again.
New York City. A cab driver being hailed a hero. He returned $100,000 in jewelry, cash and other valuables to a rider who left it in the taxi.
(BEGIN VIDEO CLIP)
JOHN JAMES, LEFT VALUABLES IN NYC CAB: I realized the pictures were in the tote bag with the jewelry, with the money, with the trust checks. You know? It just became a living nightmare.
ZUBIRU MOHAMMED JALLOH, NEW YORK CAB DRIVER: He was so happy. And he offered me a reward, and I told him, "I don't want reward. It's my job to do it."
(END VIDEO CLIP)
PHILLIPS: Well, a credit card receipt helped the cabbie track down the rider and earned him a $1,000 reward.
And we wrap up in Austin, Texas. Watch this surveillance tape as a seven-story parking garage under construction at University Hospital collapses. Two workers were injured. That structure caved in when a pair of support columns just gave way.
All right, let's talk more about Bernie's bombshell, shall we? Bernie Madoff, that is, the man among con men giving his first published interview since he was arrested two years ago. Well, "The New York Times" talked to him in the North Carolina prison where he's serving 150 years.
Madoff tells the paper there's no way that banks and hedge funds were clueless about his monster pyramid scheme. You know, the $85 billion fraud that ruined so many people's lives? Until now, he says he acted alone so, this, you could say, is a revelation.
Madoff still says his family had no idea what he was up to. Let's talk more about this with Christine Romans. So, Christine, you think some bankers who will read this article or have read this article might be getting a little nervous?
CHRISTINE ROMANS, CNN CORRESPONDENT: I'm not sure, because the book that it's being written for is called "The Wizard of Lies." So, no one knows what you can believe from Bernie Madoff, let's be honest.
And you're right, he's always said that he was the sole mastermind, his family didn't know anything about this. Indeed, he still says his family doesn't know anything about this. But now he says, well, the banks, they must have known.
In fact, he says, quite frankly, they had to know. But the attitude was sort of if you don't -- you're doing something wrong, we don't want to know. And then he goes on later to tell this reporters, they must have been complicit. Maybe that they weren't digging deep enough, maybe that they weren't going far enough in their own due diligence, but that they -- his words, "complicit."
Well, JPMorgan issued a statement on this saying, look. JPMorgan did not know about or in any way become a party to the fraud orchestrated by By Bernard Madoff." There were a lot of people, quite frankly, who were duped by Bernard Madoff, and there are people who lost their lives in relation to this entire scandal.
As you know, in December, his own son committed suicide with a dog leash in his Soho apartment. And Bernard Madoff actually addressed that with this reporter, as well, Kyra, saying that no, he didn't refuse to go to the funeral, as had been reported by some in the tabloids.
He said he found the coverage of that event, actually, disgusting. He said because of the short notice, he was not able to get away from the prison. The prison wouldn't give him a leave to do so, and he said he didn't want to put his family through that, it would have been a media circus.
So, Bernard Madoff, for a book called "The Wizard of Lies," now saying that the banks must have been complicit. And with laser-like focus, this reporter pointing out, who talked to him, saying that he's looking around, finding all the places where other people must have known what was going on. Kyra?
PHILLIPS: Sounds like he really wants to sell a book. He's willing to go out there and -- I mean, he's got nothing to lose, I guess. He can say whatever he wants. A lot of people probably are going to buy that book. What about reaction from any of Madoff's victims on any of this? ROMANS: Madoff's victims pretty typically either don't like to comment about Bernie Madoff, because they're so disgusted by it, or they say, "Who do you believe? How can you believe this guy?"
Many of them are still waiting to get money back. The trustee, Irving Picard, still turning over every rock, Kyra, trying to get as much money as possible, suing a lot of people, embroiling lots of folks in lawsuits, trying to claw back as much money as they possibly can for investors to get as much of their principal back as they can.
PHILLIPS: Christine Romans, we'll see how -- when does the book come out, by the way? Do we know?
ROMANS: It's writ -- it's by "The New York Times" reporter, it's a book by "The New York Times" reporter, it's called "A Wizard of Lies," later this spring.
PHILLIPS: Later this spring. Got it. Christine, thanks.
New charges may be game-changers for the parents of an American student convicted of murder in Italy.
(BEGIN VIDEO CLIP)
EDDA MELLAS, AMANDA KNOX'S MOTHER: It feels very personal, now. It feels like, OK you're after our daughter, you're after us.
(END VIDEO CLIP)
PHILLIPS: In an exclusive interview, Amanda Knox tells our Drew Griffin where she'll take her battle from here.
(COMMERCIAL BREAK)
PHILLIPS: Well, you remember Amanda Knox. She's the American student convicted of murdering her roommate while they were both studying abroad in Italy. She's serving a 26-year prison term.
Knox's parents have fiercely defended their daughter from the very start. Now, they're paying the price. Edda Mellas and Curt Knox were indicted Tuesday, charged with libeling police in Perugia, Italy. Now, they say that they're going to fight back.
In an interview you'll se only on CNN, our Drew Griffin actually spoke with Amanda Knox's mother. He joins us, now, live from Seattle. So, Drew, what did Amanda Knox's parents actually do to get this libel charge?
DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: As an American citizen, you are going to ask yourself what this is all about after I tell you. In 2009, the parents gave an interview to the "Sunday Times" of London in which they were describing an interrogation that Amanda Knox had described to her parents.
The parents were relating that she was denied food and water, she was denied an interpreter, and that she was physically and verbally abused during this intense interrogation. The police say that's just blatantly not true, and that is what this case is about. That is what they are being charged with.
Yesterday, I did sit down with the mother. This is what she had to say about this additional charge she now faces.
(BEGIN VIDEO CLIP)
GRIFFIN: If you look at it as the Italian justice system versus your family, this almost feels like persecution, not prosecution. Going now after the parents.
EDDA MELLAS, AMANDA KNOX'S MOTHER: Uh-huh. I wouldn't say the Italian justice system. I would say a few people in Perugia, definitely. It feels very personal, now. It feels like OK, you're after our daughter, you're after us.
Someone today commented on the radio, it's almost like they try to wear them down. "Maybe if we keep at them, they'll go away or -- go bankrupt" or whatever. But it's not stopping us.
GRIFFIN: Will you?
MELLAS: Probably eventually, yes.
GRIFFIN: Go bankrupt?
MELLAS: Well. I think we've mortgaged just about everything we can mortgage.
(END VIDEO CLIP)
GRIFFIN: The parents still say they are going to continue to not only fight for Amanda's release, but they are going to fight this charge as well for two reasons, I think, Kyra. Number one is, they think it's the right thing to do. They want the truth to come out in all of this. Number two, they have to keep battling these charges, now, if they want to continue to go to Italy, so they can see their daughter, who is in prison.
PHILLIPS: She's been convicted and sentenced to 26 years in prison. Do you think she's going to serve 26 years, Drew?
GRIFFIN: Well, the appeal -- there is a new appeal in this case, and a lot of hope because there is now a new judge, a judge who ordered a new look at, quite frankly, scant physical evidence in this case.
That review is due in May and then the parents will face their judge in July. So, there is hope for a new appeal here, but again, her conviction has been upheld by the higher courts in Italy, and she is serving 26 years in prison.
PHILLIPS: Drew Griffin with an exclusive for us this morning, Drew, thanks. PHILLIPS: Well, if you need more friends why don't you just reach out to the Saudi royal court? It's on Facebook. Maybe hoping to avoid an Egypt-like situation. We'll explain straight ahead.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
PHILLIPS: Well, it's 9:30 in D.C., about 24 minutes before sunrise in Monterey, California. Right now we're watching United Airlines. The company hope to get its Boeing 757s back in the air today. It actually grounded the fleet -- about 100 planes -- to do some maintenance on air data computers.
And Bernie Madoff telling the "New York Times" that banks had on to know about his monster, historic Ponzi scheme. Madoff still claiming his family doesn't know about the $90 billion fraud. His first published interview, by the way, since he was arrested.
And two agents with U.S. immigration and Customs Enforcement -- ICE -- driving near Mexico City, forced off the road, surrounded by possible drug thugs. One of the agents is killed, the other wounded. We're told they were doing routine work and driving an armored vehicle with diplomatic tags.
Well, anti-government protests still boiling up today in at least a half a dozen Arab nations. In Bahrain, a nervous U.S. ally, home base to the U.S. Navy's fifth fleet, bends to the growing anger. The kingdom is vowing to punish those who killed two protesters earlier this week. Our sources there say that the government launched a brutal crackdown when the pro-democracy protests started growing.
And in Libya, rallies in support of the government popped up in several cities today. They're voicing support for Muammar Gaddafi, who has been in power for some 40 years. And a source inside Libya tell CNN that police forces clashed with anti-government activists. Libya is downplaying the demonstrations saying it is not an organized uprising.
While other protests came and went in the recent years, 2007, the so-called Saffron Revolution in Burma, where monks in saffron colored robes protested to oust Myanmar's military government.
And in 2009, an uprising known as the Green Movement after the disputed Iranian presidential election, demand the resignation of President Mahmoud Ahmadinejad.
Then to today. Just two months ago. It's said to began with a fruit vendor in Tunisia to set himself aflame to protest unemployment in his country. He died in the hospital, but this time, the flames did not go out.
Now newfound people power in the Middle East and North Africa is spreading fast. Fierce demonstrations have erupted and this time they are fueled by organizers harboring the power of social media, using web sites such as Facebook and twitter. Foreign governments worry that Egypt-like demonstrations might send them packing too. Well, they're now also getting into the social media conversation. The Saudi Royal Court has launched a Facebook page where citizens can forward their grievances to the king with a click of a button. And you can like Egypt's Foreign Ministry on Facebook, too.
Naturally, none of this is lost on the current administration. The U.S. State Department is now twittering Farsi, the primary language in Iran. Yesterday, Secretary of State Hillary Clinton called for world citizens to have open access to social media and the internet.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, SECRETARY OF STATE: While the rights we seek to protect and support are clear, the various ways that these rights are violated are increasingly complex. I know some have criticized us for not pouring funding into a single technology, but we believe there is no silver bullet in the struggle against internet repression. There is no app for that.
(END VIDEO CLIP)
PHILLIPS: Jill Dougherty is in Washington and we're watching as Secretary Clinton speaks at 10:00 a.m. at the first-ever strategic dialogue with civil society meeting.
First, though, Jill, there seems to be this shift within the administration turning foreign policy discussions from government-to- government, now government-to-people.
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Yes. You know, Kiran (sic), actually, we've been watching this for a couple of years. When this administration came in, Hillary Clinton was talking about some of this but it really, I think you could say it didn't quite gel or maybe, you know, we weren't getting it or whatever.
But they were focused on this idea that traditional, you know, diplomacy is government-to-government. And what Hillary Clinton and some of the people at the State Department were saying, you should also be talking to the people in different countries. And if you empower the people to then press their governments, things can happen.
And then you add to that twitter, Facebook, and then whatever is going on in the Mid-East and North Africa, a real peoples movement, it's an amazing combination. So it's just reaching critical mass right now.
And in that speech that Clinton was talking about, delivered yesterday, she was talking about the balancing act, that there is some countries out there that believe that they can have, let's say, an internet in which they can just do business, you know, but they will not allow their people really to communicate.
And so the argument that she is making is, you can't shut it down because, number one, it's going to have a bad effect on young people who want to get jobs, but it's also going to create this pent up pressure from societies for change.
PHILLIPS: And here's what is interesting, if we look back, Jill, just, you know, a handful of years, we didn't see social media play a role like it is now.
Looking forward, as we watch what is happening in Egypt and Iran and Tunisia and Yemen and we are seeing things on youtube and facebook and pages being launched and now the government actually joining in on this, you actually wonder, OK, what could be next?
Could something happen in North Korea, China, these places that totally censor this type of activity online and don't get involved?
DOUGHERTY: Yes. It's kind of an unknown, because everywhere you look, there's a slightly and maybe sometimes more than slightly different picture. You know, these countries even in the Middle East and North Africa are all very different. But you usually have some common things.
Often they're young populations. They could be even educated, but they don't have any chances. And a lot of them are getting on the internet and using certain types of technology that actually you don't have to have a lot of knowledge to use. You can actually, let's say, tweet and do all of that just by using your cell phone. And cell phone penetration in a lot of these countries is really, really high.
Plus, I think it's a very interesting thing. There are organizations, nongovernmental organizations out there, a lot of them, and the State Department is helping them, that help these individuals and groups to get around the blocks that countries impose. And they can actually, you know, jump over the barriers to communicate not only within their own country, but around the world.
So it's really fascinating. It's happening really fast. And a lot of -- to get a handle on exactly what is going on is pretty hard. But it's amazing.
PHILLIPS: And so now we're watching this speech that's going to happen, right, at 10:00 a.m., with the Secretary of State. This first-ever strategic dialogue with civil society. Put that in layman's term.
What are we going to see here? What's the nutshell, Jill?
DOUGHERTY: Yes. That is the catch phrase at the State Department, civil society. And people say what is civil society?
But essentially what it is, is it's the organizations, the groups, sometimes the individuals in various countries that participate in their society. It could be nongovernmental organizations, it could be educational groups, it could be activists, bloggers, et cetera. But they're going to bring people together today and it should be an interesting conversation.
PHILLIPS: All right. We'll talk more about it.
Jill, thanks so much.
So, could baseball have its his $300 million player? Can you believe that? We're going to get the low down in sports.
(COMMERCIAL BREAK)
PHILLIPS: Looking at ahead at some stories we're following today on CNN.
Lawyers for a former Bolingbrook, Illinois police sergeant Drew Peterson, well, they're due in court today. At issue, whether a jury can consider statements two of his former wives made about him. One of them is dead and the other is missing and presumed dead. Peterson is accused of killing his third wife and is under investigation into the disappearance of his fourth wife.
And in less than two hours, the widow of actor Patrick Swayze will be in Washington to push for increased funding to pancreatic cancer research. Swayze died of that disease in September 2009. So, Lisa Swayze will join lawmakers to announce the reintroduction of the Pancreatic Cancer Research And Education Act.
Mississippi governor Haley Barbour in the hot seat. Cameras are there as he weighs in on new proposal to create a license plate to honor a former KKK leader. Details straight ahead.
A glimpse of what is happening around the world. Hear what's is really going inside a pizza restaurant. Investigators sure got suspicious when they saw a lot of customers going in and coming out empty-handed.
(COMMERCIAL BREAK)
PHILLIPS: All right, let's get straight to our Paul Steinhauser out of Washington at the political desk. We've got some breaking news?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, I sure do, Kyra. Coming out of Florida now, this is governor Rick Scott down in Florida the new governor down there just elected in November, held a news conference, he calls just an hour ago. He just has a news conference and he's saying no, he's rejecting federal funds from the administration for high speed rail.
He's now the third new Republican governor joining the new Republican governors of Wisconsin, Walker and Kasik in Ohio to say no to federal funds for high-speed rails. As you know this is a big project that President Barack Obama is pushing as part of what he calls the country's efforts to win the future.
So another Republican governor saying no to high-speed rails to rejecting the federal funds.
Now to something you were just talking about alluding to before the break. The governor of Mississippi Haley Barbour and this is very interesting. It seems he is dealing, once again, with the issue of race. And what is involved here is the NAACP is asking Barbour to denounce a move by a Confederacy Group to -- to -- to a pro Confederacy Group, sons of the Confederacy to try and get a special license plate, a license plate down there in Mississippi for a civil war general. A Confederate civil war general who went on to become one of the early leaders of the KKK.
Now, Barbour in a testy exchange with reporters said no, I'm not going to denounce anybody, I'm not even going to denounce you and the media. But he also predicted this license plate would never happen. Take a listen to the exchange.
(BEGIN VIDEO CLIP)
REP. HALEY BARBOUR (R), MINNESOTA: This Nathan Bedford Forrest tag is not going to happen. Isn't that what you asked me?
UNIDENTIFIED MALE: I mean the --
BARBOUR: It that what you asked me?
UNIDENTIFIED MALE: Yes that's what I asked. How do you know it's not going to happen?
(CROSS TALK)
BARBOUR: And it's not going to happen.
And the Bureau of Revenue is not going to do it unless the legislature makes them. They've already said that point blank.
(END VIDEO CLIP)
STEINHAUSER: Ok and here's the thing about Barbour. As you know, Kyra, he is seriously considering a run for the Republican presidential nomination. This is the third time now in the last couple of months he has to deal with the issue of race which may not be the thing he wants to do as he tries to possibly gear up for a run for the White House -- Kyra.
PHILLIPS: All right. Well, talking about gearing up. Possibly a new role for Governor Chris Christie?
STEINHAUSER: Yes. Governor Chris Christie who a lot of Republicans consider a rock star, you know, the first, the first term governor from New Jersey. Republican Governors Association this morning announced that he is going to be a vice chairman on policy which will now give Christie another outlet.
And remember, later today at 1:00 Eastern, Christie is right here in Washington, D.C., a much anticipated speech where he is going to talk we assume about budget cuts, about spending cuts and the deficit and things like that.
Remember, Christie a lot of people are wondering does he want to run for the White House. He keeps saying no, no, no but a lot of anticipation in today's speech -- Kyra.
PHILLIPS: Ok, Paul thanks.
And we're hearing for the first time from Italy's Prime Minister Silvio Berlusconi and he says he's not worried at all since being ordered to stand trial for paying for sex with an under aged girl.
(COMMERCIAL BREAK)
PHILLIPS: All right, grab your passport. We're heading around the world.
First stop: Milan, Italy. Of course, we've got to talk about playboy Prime Minister, Silvio Berlusconi and his prostitution trial on the fast track. Bunga-bunga, Zain Verjee is following us with more from London? That sounds like cave man talk. Cave man behavior, that's for sure.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hey, Bunga-bunga.
PHILLIPS: Yes, I forgot, ok, I got to get it right. Meanwhile, I'm confused.
VERJEE: Yes everyone is puzzled by the word but that's what's being expressed all over Italy and resonating around the world. These sex parties that Silvio Berlusconi, the Prime Minister of Italy is alleged to have had.
Now, he is going to be on trial charged with the abuse of power and having sex with a 17-year-old dancer. Now, Kyra, he had a press conference today, and he said, when asked about it, he said, "For the love of God, I will not talk about this. All I can say is I am not worried".
He is facing a panel of three judges, Kyra, all female and that trial is going to start in a few weeks.
I want to take you now to Japan. Kyra, I have been watching a story about goblins. I think you may like that one. Basically, what they're doing over there is they have this annual ritual. I mean these three guys they dress up as goblins and they are running around as you can see in this video dressing up and they -- flinging around these iron bars and then what happens is these monks kick them out.
So, why are they doing this? Well, it's a ritual, and the idea is they drive away the bad luck represented by goblins, and they invite good health and good fortune. You don't do that at home, do you? Kyra?
PHILLIPS: It's a lot easier just to hang up an evil -- an evil eye versus having a goblin run around my house with a torch.
VERJEE: All right, good. Well, that makes one of us.
So anyway now, in Canada, I'm following this other story where $1 million worth of pot was seized in downtown Toronto. Basically there was this pizzeria and police were monitoring it, and they noticed that people would go in for pizza -- pizza and then come out with nothing.
And so they had this raid and it turns out that they got a $1 million worth of drug, and that's dangerous because you know what Kyra, it could fuel bunga-bunga.
PHILLIPS: And also too, I thought when you smoked too much pot then you got hungry, you would think they would be coming out with even more pizza than --
(CROSS TALK)
VERJEE: More pizza, right, right. Exactly, yes.
PHILLIPS: Zain, thank you.
VERJEE: You're welcome, Kyra.
PHILLIPS: All right, we're following lots of developments in the next hour of CNN NEWSROOM. Let's go and check in first with Stephanie Elam.
STEPHANIE ELAM, CNN BUSINESS NEWS CORRESPONDENT: Kyra, there's going to be a monopoly makeover. No more money, no more chance, no more community chest; it's going to look a lot different. I'll tell you how different, that's coming up in the next hour.
ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano, in the CNN Severe Weather Center. The West Coast continues to get pounded with rain, wind and heavy snow; meanwhile, the eastern two-thirds starting to warm up and feel like spring. But don't get used to it. It won't last long. The full forecast in the next hour.
PHILLIPS: All right, thanks guys.
And love and marriage go together. Well, you know the song. But what about love and living together? I think we need a new song because apparently it's the new way to go. Ditch the altar, just get a great pad, shack up. Why the change? We're talking about it in the next hour.
(COMMERCIAL BREAK)
PHILLIPS: Jeff Fischel from HLN joining us. What do you have off the top?
JEFF FISCHEL, HLN SPORTS: You know, the greatest player in baseball has set a deadline. We're now two hours away, Albert Pujols, the three-time NL MVP perhaps on his way to becoming a free agent. He could be by the time his career is over, the greatest first baseman ever.
Noon today, he wants a new contract or else he will not talk about it the rest of the season, would become a free agent at the end of the season. He wants a ten-year deal worth $300 Million. The Cardinals say, you know what; we're offering eight years $200 million. That's what we're hearing from SI.com. PHILLIPS: What do you do with all that money.
FISCHEL: You think that would be a lot. $300 million. They are arguing over between $200 million and $300 million. Anyway, again, if the deal doesn't get done in the next two hours, it looks like Pujols becomes a free agent at the end of this season. And then, of course, oh that's rough, who knows where he goes.
Lance Armstrong is calling it quits again. After a two-year attempt at a comeback, Armstrong says he's retiring to spend more time with his family and lead his cancer research foundation. Armstrong has been troubled by a knee injury since December. He won the Tour de France seven straight times after coming back from cancer in 1998.
Two spots legends were honored at the White House yesterday. 90- year-old St. Louis Cardinals icon Stan "The Man" Musial was awarded the medal of Freedom by President Barack Obama. Musial who wore his familiar Cardinals red sports coat was among 15 recipients.
Also honored Boston Celtics legend Bill Russell. He won 11 NBA titles during his career. He was the first African-American to be named a coach in the NBA and he was the first black player to be inducted into the Hall of Fame as well. Well deserved both guys.
All right Kyra. Check this out. A lot of outrage, a minor league hockey game, a fan Richard Marsh, made an incredible 170-foot shot for charity all the way across the ice. Look at the little hole he has to get into, three inches wide and it's in.
KYRA: That's awesome.
FISCHEL: It should have earned him $50,000 and he said before the shot he would donate it all to charity to a local hospital.
(CROSSTALK)
FISCHEL: But the insurance company that was supposed to pay the prize, it won't pay.
KYRA: Why?
FISCHEL: Marsh, when he took the shot, he is in front of the red line right there. That's when you cross that line, that made the shot no good as far as the insurance company was concerned. As if 182 feet is easier than (INAUDIBLE)
PHILLIPS: What does it matter if he's going to give it to charity. What is the name of this insurance company? Do we know?
FISCHEL: I don't have it with me.
PHILLIPS: You don't have it? I want to call them out. Give me that name because I'm following up, Fischel.
FISCHEL: I will say this. I will say this. The team came out and said, you know what; we feel bad, we are going to make the donation.
PHILLIPS: There you go.
FISCHEL: At least someone came through when the insurance --
PHILLIPS: And I will never that insurance company.
FISCHEL: (INAUDIBLE) hospital. You know insurance companies and hospitals, you figure there is a relationship there.
PHILLIPS: Yes. That is just wrong.
FISCHEL: Irony there.
PHILLIPS: Yes. Well, good for the team. Give them a shout-out. We've got two.
FISCHEL: Indianapolis team, that was great stuff. Good stuff for them.
PHILLIPS: Thanks Jeff.
Get me the name of that insurance company. I'm not letting this go.
FISCHEL: The e-mails will start flying.
PHILLIPS: That's right. We'll start a campaign.
