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GOP Presidential Hopefuls Go After Obama; Obama to Weiner: I'd Resign; Reports: Secret Drones in Yemen; Report: Millions Fleeing Facebook; Rapture Pastor Suffers Stroke; Final Witnesses in Anthony Case; Arizona Wildfire Spreads into New Mexico; $5.7 Billion in Airline Fees in 2010; Tracy Morgan Returns to Nashville; Clarence Clemons Suffers Stroke; Tori Spelling in Car Crash; Big Issues Addressed at Debate
Aired June 14, 2011 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: It's almost 10:00 a.m. on the East Coast; 7:00 a.m. out West. I'm Kyra Phillips, here's some of stories that have us talking this morning.
Michele Bachmann makes it official, files papers to run for president. She made the announcement during CNN's debate last night, the first of the 2012 campaign season.
In Minnesota, the governor has ordered layoff notices for thousands of state workers, a government shutdown looms and the clock is tick.
And the second largest wildfire in Arizona history, now sweeping across state lines in new Mexico. Firefighters have contained only about 10 percent.
And the tone for the 2012 presidential campaign is set, for now at least. Last night's Republican debate gives us a good idea what we'll be hearing for the next few months. We're going to hear the GOP pound the President on the economy.
(BEGIN VIDEO CLIP)
ROMNEY: Any one of the people in this stage would be a better president than President Obama. He has failed in job one, which was to get this economy going again. He failed in job two, which is to restrain the growth of government.
TIM PAWLENTY (R), PRESIDENTIAL CANDIDATE: This president is declinist. He views America as one of equals around the world.
JOHN KING, CNN HOST: Has he done one thing -- has he done one thing right when it comes to the economy of this country?
RON PAUL (R), PRESIDENTIAL CANDIDATE: Boy, that's a tough question. No, no, I can't think of anything.
(END VIDEO CLIP)
PHILLIPS: CNN deputy political director Paul Steinhauser is here. We sure learned a lot from this debate, Paul.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: We sure did, Kyra. You and I were talking about Mitt Romney. We're saying, hey, he's the front-runner, he has the most to lose last night. Well, did he? No, he didn't do any harm.
You know, Kyra to me it seemed like he was almost running a general election campaign. He even said that he can't wait to debate President Obama. He was looking ahead past the primaries and caucuses to next year. I think he thinks he's already the nominee.
So I guess Mitt Romney survived. He didn't do any damage. He's still the front-runner and he was very gregarious in fact to the other rivals on the stage.
What about Tim Pawlenty, remember we talked about Pawlenty may go after Romney over health care.
Well, maybe a missed opportunity. In fact John King, the moderator, gave him two changes. Take a listen.
(BEGIN VIDEO CLIP)
JOHN KING, CNN ANCHOR: Why would you choose those words, given the comfort of a Sunday show studio? Your rival is standing right there, if it was Obama care on Fox News Sunday. Why isn't it Obama care standing here with the governor right there?
TIM PAWLENTY (R), PRESIDENTIAL CANDIDATE: President Obama is the person who I called it in saying he looked to Massachusetts for designing his program.
He's the one who said it was a blueprint and that he merged the two programs and so using the term Obamney care was a reflection of the president's comments that he designed Obama care on Massachusetts health care plan.
(END VIDEO CLIP)
STEINHAUSER: You know, (INAUDIBLE) Kyra, for candidates to go on the attack to make a name for themselves so we're kind of a little confused.
That the former Minnesota governor didn't do what he did Sunday, which was really take on Mitt Romney on health care. Other than that he had a pretty good debate.
What about Michelle Bachman? I think you could say it was her debut, her coming out party. It was pretty successful. She had some of the biggest one-liners of the night, some of the biggest applause. Take a listen. Here's a taste.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: We need everybody to come together because we are going to win. Just make no mistake about it. I want to announce tonight, President Obama is a one-term president. We'll win.
(END VIDEO CLIP)
STEINHAUSER: Lines like that, I guess you can't go wrong with a Republican crowd. Of course, as you know, Bachman made some news. She said, she has filed the papers. Yes, she's a candidate now. Kyra.
PHILLIPS: So, what are insiders telling you?
STEINHAUSER: We teamed up with the "National Journal." Look at this. They polled about 50 or 60 insiders, Republican strategists. This is their living. Take a look at this.
The winners by far, look at the top there, Mitt Romney but a strong second place, Michele Bachmann. What about the losers? Well, in first place I guess on the losers list they say is Tim Pawlenty.
It's still early, Kyra. A long way to go, a lot more to debates so time for plenty of people to recover. You know what, when the next debate comes, we may have some other candidates on the stage, which we didn't have last night so stay tuned.
PHILLIPS: We will. Thanks, Paul.
Request granted. Congressman Anthony Weiner is off the job. No, he hasn't resigned. The House actually granted him a two- week leave of absence and now President Obama is weighing in.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Ultimately, this is going to be a decision for him and his constituents. I can tell you that if it was me, I would resign.
(END VIDEO CLIP)
PHILLIPS: Well, Kate Bolduan is on Capitol Hill. Kate, House Democrats meet for the first time today since the scandal broke? What are you hearing?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: We're hearing, this is the first time that the House Democrats are meeting since the scandal broke, as you just said. The meeting is still going on.
But as members leave and come and go as they need to. Kyra, what we're hearing is one member just came out, one Democratic member just came out to say not one word of, quote, unquote, "Weinergate" has been spoken in this meeting.
It's clear that members are trying to change the focus as they've been trying to back to their agenda on the economy and jobs. While they may not be talking about it inside the caucus meeting, members were definitely talking about it outside of the caucus meeting as reporters were standing by.
Listen here to one member. Carolyn McCarthy of New York, significant because she's a fellow New York Democrat of Anthony Weiner's and we believe this is the first time she's weighing in on this scandal.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Do you think he should resign?
REP. CAROLYN MCCARTHY (D), NEW YORK: I think we should get on to the business of our being here in Congress. He has to take care of his constituents. That's not up to me.
UNIDENTIFIED FEMALE: Is it possible to get on to your business without him resigning?
MCCARTHY: We're going to find out. Hopefully, we're hearing that he might resign in the next couple of days.
(END VIDEO CLIP)
BOLDUAN: So Carolyn McCarthy thinking that she's hearing that he might resign in the next couple of days. What we know, Kyra, though bottom line is that there's some serious pressure coming from Democratic House leaders like the Minority Leader Nancy Pelosi calling for Anthony Weiner to resign.
We know that. We also know now, as you just said, that President Obama is suggesting, as much. But at the same time, we're also hearing from House members, as they're now coming back after this recess, they're not going that far to call for him to resign.
They say, well, they don't condone his behavior, they believe that this decision of what move he should make next is ultimately up to him and ultimately up to his constituents. So, in terms of what the caucus can do really quickly, Kyra, gets a little bit into the weeds.
There are procedures in place for expelling him of the caucus, or stripping of his assignments, but doesn't seem like the committee is moving in that direction right now. Kyra.
PHILLIPS: All right, Kate, thanks. Also on the Hill, all of the official web sites connected to the Senate are under review after a hacker compromised security this weekend.
The intruder was able to hack into the server that supports senate.gov. Senate officials say no damage was done. The hacker only gained access to files that were already open to the public.
And in Yemen, a story of spy, intrigue and killer drones. Both "The Washington Post" and "Wall Street Journal" are reporting that the CIA is getting ready to launch a secret campaign there. CNN's Zain Verjee in London following the latest headlines. Zain. ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Kyra, let's go straight to the "Wall Street Journal" and let me tell you how they push it. They says this, the U.S. is increasingly concerned about the deteriorating security situation in Yemen.
Worries heightened by signs that Islamist militants are trying to seize control of towns in southern Yemen and that's because there's such a big power vacuum there, Kyra. You've got the assassination attempt. Protesters are out on the streets and U.S. is worried that al Qaeda will take advantage.
The "Wall Street Journal" also goes on to say that these drone attacks were proved secretly by President Obama last year and these CIA drones are going to be using, I'm quoting, "smaller war heads than most manned military aircraft."
It says, U.S. officials hope that they will reduce the risk of civilian casualties and minimize any anti-American backlash in Yemen. That's something pretty similar to the program in Pakistan and they want to do it now in Yemen.
Kyra, the way it's going to work, at least for starters, the "Wall Street Journal," quoting officials, says that "the CIA is going to ramp up its intelligence gathering efforts and they're going to get help from the Saudis."
Have a really good and really extensive network on ground there and then they're going to focus on a targeted killing program after they've got crucial information. Kyra.
PHILLIPS: All right. Zain Verjee out of London. Zain, thanks.
He's been the king of social media for years. A new report says Facebook has lost millions of friends here in the U.S.? Trend, anomaly? We'll talk about it.
Airlines now you have paying for snacks, leg room and even blankets, but the big bucks come from a couple of other hidden gotchas. Billions of dollars siphoned from your pocket.
(COMMERCIAL BREAK)
PHILLIPS: Facebook continues to grow and closing in on 700 million users worldwide. Only thing is, it's losing a lot of American friends, almost six million last month alone.
Those are stats coming from a research and marketing firm. Facebook's reaction, basically lol. Author and social media expert, Paul Gillin is joining us now. So Paul, first of all, I want to read Facebook's official response to all of this.
And this is what they said, in response to this report. From time to time, we see stories about Facebook losing users in some regions. Some of these reports use data extracted from our advertising tool, which provides broad estimates on the reach of Facebook ads. It isn't designed to be a source for tracking the overall growth of Facebook. So Facebook critics the methodology, do you buy it?
PAUL GILLIN, SOCIAL MEDIA EXPERT/AUTHOR: No, I don't because Facebook has never criticized methodology before. The fact is that the methodology that was used to determine these numbers has been consistent and is showing about a 4 percent decline in U.S. members over the last month. And that is certainly concerning for Facebook, buts it's in their best interest to laugh it off.
PHILLIPS: So, if Facebook has lost almost six million U.S. users, why do you think that is?
GILLIN: I think there are three or four factors at play. One is, actually every summer, Facebook growth in the U.S. slows because college students graduate. They delete their accounts because they don't want perspective employers to see them, to see the pictures of them drunk at beer parties in college.
Another factor is there's growing concern I think by parents with some of the privacy issues and the bullying that's been going on, on Facebook. I've certainly been personally aware of parents who said that their kids simply you are not on Facebook anymore until you're 18.
And then there is a third factor, which is the law of diminishing returns. Facebook is now about half of the U.S., about half of the people in the U.S. now has Facebook accounts. There's simply is just no more growth at this point in the U.S.
They're beginning to suffer some declines for some of these other factors, some people are complaining about spam. They don't want 50 messages about their friends' scores of Angry Birds coming into their inbox every day.
So there's some annoyance that's playing into this and without the prospect of significant growth in U.S., Facebook is seeing a flattening even a small decline. Their problem is how do they grow overseas?
PHILLIPS: Right. Well, and there's also this fine line of being helpful, right and also being too intrusive. If you look at MySpace that used to be a big social media site, it totally tanked. So do we sort of see the same thing happening for Facebook, or is it better positioned?
GILLIN: Well, I think in Mark Zuckerberg's nightmares, he sees the MySpace scenario, which is down, I believe, about 50 percent in activity over the last three years and is essentially has become irrelevant at this point.
What happened to MySpace is Facebook overtook it and offered a more valuable service. So people deserted MySpace in droves. This is one reason, Kyra, that you see Facebook pushing the envelope on the privacy concerns.
They're constantly trying to innovate new services that will keep them ahead of the pack. As a result, they're constantly annoying people with some of the limits that they test. I think though that they see MySpace in the rear view mirror and they say we don't want to be that.
PHILLIPS: Right. Paul, thanks for weighing in. Appreciate it.
Checking stories cross country now. The radio evangelist who predicted the apocalypse last month had suffered a stroke. The 89-year-old Harold Camping is recovering at a California hospital. He was widely mocked when he's made 21st prediction failed to materialize.
In Florida, prosecutors in the Casey Anthony murder trial could reset their case today. An FBI fingerprint expert took to the stand testifying about duct tape found on the remains of 2-year-old Caylee Anthony. Some people are waiting as much as six hours to catch a glimpse of the trial, often running to get a spot inside.
And Arizona fire fighters have choked the flames of that massive wildfire that's churning northward. Now the focus shifts to the east where the wildfire, rather, has spread into New Mexico. National Forest officials say the fire is now the largest one in Arizona history.
Plane ticket doesn't come with very much these days. After all, you have to pay to check your bags and on many other things and changing your reservation that also costs extra.
Now a new report shows how much extra you're actually paying. Alison Kosik, it also depends too, right, what your status is with regard to how often you fly. Platinum members, say, for example, don't have to worry about that as much as people who don't have that advantage.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: That's true, but this actually tallied up how much we collectively paid last year. Last year, we paid close to $6 billion in fees. I'm talking about the fees that go along with when you check your bags and when you change your reservations, these fees, it's amazing, how much they've been rising, it's at a stunning rate.
Back in 2007, we were paying about $1 billion. Look how much those fees have gone up. It's actually Delta Airlines that took in the most revenue from those fees. United Continental came in second.
And get ready, Kyra, these fees are only the tip of the iceberg that's $5.7 million figure. Just the tip of the iceberg because it doesn't count those other fees like food, entertainment, pets, and the pillows. Those are counted in a bigger report. Those numbers coming out at end of the month. Kyra.
PHILLIPS: So can the airlines survive without all of these fees?
KOSIK: You know, one analyst puts it this way. He says that airlines would most likely lose money if it weren't for these fees, because their profit margins are thinning more and more. The carriers, they're paying more and more for higher fuel prices, but there are fewer people flying. An industry trade group came out with a forecast last week that was pretty grim profit wise.
Saying that North American carriers stand to make about $1 billion this year, it sounds great, but it's actually down from $4 billion last year. So bottom line for you and me, it means these fees aren't going away any time soon, Kyra.
PHILLIPS: OK. Not good news. Alison, thanks.
He's played with musical greats like Bruce Springsteen and Aretha Franklin, but this morning saxophonist Clarence Clemens is recovering from a stroke.
(COMMERCIAL BREAK)
PHILLIPS: Disgraced comedian Tracy Morgan returns to Nashville, but this time he'll have a different message. "SHOWBIZ TONIGHT" host A.J. Hammer is here. A.J., Tracy Morgan going back to Nashville, but it's not to apologize, I understand.
A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Well, actually, he's trying to make amends. He is returning to Nashville because he does want to apologize face to face to all of those people who went to his concert.
They paid money to go to the comedy show instead they heard this vial homophobic rant. Morgan did issue a public apology in a statement for what he said in that show, but on Monday, he spoke with the Gay and Lesbian Alliance against Defamation.
He did announce a plan not just to go back to the scene of the crime to apologize, but also meet with gay, lesbian and transsexual teams in New York City this week.
He's also going to appear in a PSA for GLAD. "SHOWBIZ TONIGHT" got some reaction to the news last night during an event honoring Stevie Wonder, which took place at the Apollo Theater. Take a look at some of what we heard.
(BEGIN VIDEO CLIP)
AL SHARPTON, CIVIL RIGHTS ACTIVIST: I think what he did was wrong. I respect the fact, he said it was wrong. I think he's doing the right thing to go with GLAD and make amends. Wrong is wrong.
(END VIDEO CLIP)
HAMMER: So Al Sharpton, clearly not backing up Tracy Morgan and quite frankly, Kyra, that's what I've been hearing from a lot of people, including one particular comedian who had worked with Morgan in the past.
And said unfortunately, this guy just had no gate. He doesn't think about what he says and just spews it out there. At least he's on the right path with the actions he's now taking.
PHILLIPS: All right, let's talk about Clarence Clemons, the saxophonist and member of Bruce Springstein's E Street band actually suffering a stroke on Sunday night. Do we know what his condition is now?
HAMMER: Kyra, officially there's not any news coming out about his condition, but we have reached out to Springstein and other members of the band. Right now, nobody is commenting, but backstreets.com is well connected Springstein fan site.
They're reporting some hopeful signs, which is terrific to hear. They say the big man as he's known was paralyzed on one side by the stroke, but he has regained some use of his left hand.
Clemons is a legendary musician, Kyra. Beyond his work with Bruce, he's worked with all kind of artists and on all kinds of songs. He worked with Lady Gaga on her current hit "The Edge of Glory."
Gaga is one of the many people wishing Clemons well. Let me read to you what she tweeted about him. Little monsters, my very close friend and musician on the "Edge of Glory" Clarence Clemons is very sick. Can we all make some get-well videos?
I should add, Kyra, he's a super nice guy, so talented and obviously, we all wish him well and a speedy recovery.
PHILLIPS: We'll follow up on that recovery. Let's keep saying that word. All right, pretty scary situation, I guess, for reality star and actress Tori Spelling. What's the deal with this car accident?
HAMMER: Yes, I mean, this had to be a terrifying moment when Tori who is pregnant got into a car accident while taking her two young children to school. She's blaming photographers for this accident.
Here's what Tori tweeted about this. Paparazzi chased me with the kids to school. I was trying to get away from him. I had a pretty big accident, took down the whole wall of the school.
He still then got out to try to get pics. Ten school moms chased him away. What will it take? Someone dying for paparazzi to stop? Going to doctor now to check on baby.
At this point, Kyra, everyone seems fine. But it's amazing to me, although not entirely surprising that this still goes on, unbelievable.
PHILLIPS: Yes, A.J. a lot of downer news today. Usually we're laughing --
Hopefully, we'll have some better entertainment news tomorrow. A.J., thanks. If you want information on everything breaking in the entertainment world, A.J.'s got it every night HLN "SHOWBIZ TONIGHT," 11:00 p.m. We knew it was a problem. Mexican drug gangs arming themselves with American guns even so the latest stats from the ATF are a shocker. Live report coming up.
(COMMERCIAL BREAK)
PHILLIPS: As you know, CNN's Republican debate hit some very important topics, jobs, health care and military. Our John King tried to get a feel for the personalities of the debaters with a little this or that.
(BEGIN VIDEOTAPE)
KING: Mr. Cain, deep dish or thin crust?
HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: Deep dish.
KING: Mr. Pawlenty to you, Coke or Pepsi?
TIM PAWLENTY (R), PRESIDENTIAL CANDIDATE: Coke.
KING: Elvis or Johnny Cash.
BACHMANN: That's really tough, that's really tough. Both, both.
KING: Both?
BACHMANN: Yes.
KING: "Dancing with the Stars" or "American Idol."
UNIDENTIFIED MALE: "American Idol."
KING: Governor Romney, to you now. I imagine you're getting to the barbecue joint, maybe it's here in New Hampshire or maybe in South Carolina ordering some wings, spicy or mild?
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Spicy, absolutely and, by the way, Bruins are up 4-0.
(END VIDEO CLIP)
PHILLIPS: I was going get spicy now. It's time for our "Political Buzz." Rapid fire looks at hottest political topics of the day, each of our brilliant political observers get 20 seconds to answer three probing questions.
Today, Robert Zimmerman, member of the Democratic National Committee, CNN contributor, Errol Louis, political anchor in New York and Will Cane, conservative political analyst.
Let's start with the first question, guys, as you know, last night was the first major Republican debate leading up to the 2012 election so who won and why. Robert?
ROBERT ZIMMERMAN, MEMBER, DEMOCRATIC NATIONAL COMMITTEE: Well, actually, I tell you, John King did a masterful job last night. Looked kind of presidential, but I got to give credit to Mitt Romney.
He showed he grew enormously from 2008, solidified his position as the frontrunner. But Michele Bachmann was the break-out star. Her announcement strategy and sound bites won the day for her.
PHILLIPS: Will?
WILL CAIN, CONSERVATIVE POLITICAL ANALYST: Romney by default. Look, nobody touched him and apparently nobody wanted to. John King even took Tim Pawlenty's glove and put it up to Romney's chin over the whole Obamney care thing and Pawlenty didn't want to swing through. I don't know why, but they're slow playing that until they quit doing that, Romney will stay the front runner.
PHILLIPS: Errol?
ERROL LOUIS, POLITICS ANCHOR, NEW YORK 1 NEWS: That's right. I think Romney though mostly didn't lose more than he won. Michele Bachmann on the other hand did very, very well.
For somebody polling in the low single digits, you'd never know it. She did very well. She introduced herself. She connected with the audience and she even had the common sense to drop some news there, which got her a big round of applause, formally announcing her candidacy right there at the debate.
PHILLIPS: She made all the rounds on morning television this morning as well. All right, let's look to the other side. After last night's debate, do you think President Obama is beatable or more secure, Will?
CAIN: Let me say this. Going into last night, I didn't think a lot of Michele Bachmann and I came away very impressed. She was sharp and substantive. So when I looked across that stage, I thought, you know, a Romney-Bachmann ticket makes Obama look a little vulnerable and I realize that looks like McCain-Palin. But I don't know that Obama could win a rematch of McCain-Palin.
PHILLIPS: Robert?
ZIMMERMAN: Actually a Romney-Bachmann ticket is McCain-Palin on steroids. But I've always said, in this election is a 50-50 race. I think -- when the Republicans start having to put their record on the table and debate each other, it's advantage Obama.
PHILLIPS: Errol?
LOUIS: Anybody, including the sitting president is beatable, in part because of nation is so divided on so many different issues and we've got a terrible crumbling economy. It's got a lot of people upset.
He had a lot of things going for him last time Obama did. He still won with what 52 percent, 53 percent. Is he beatable? Absolutely, he's beatable. Will one of the people on the stage be the one to do it? Maybe, we'll see.
PHILLIPS: All right, you're buzzer beater, 10 seconds each guys.
Michele Bachmann says she's in for 2012. She made the big announcement during the debate, which had a lot of people saying this morning, Palin who? What do you think, Robert?
ZIMMERMAN: Well, if Sarah Palin got to go on "American Idol" because her reality show failed and book failed, she'll do whatever it takes to stay visible. May be Sarah Palin why, Michele Bachmann clearly has filled that void.
PHILLIPS: Will?
CAIN: I don't think Michele Bachmann has made people forget Sarah Palin yet, but I don't think she might very soon.
PHILLIPS: Errol?
LOUIS: John King, could we ask that question, Bachmann or Palin. I think we all know the answer to that especially among Republicans.
PHILLIPS: All right, guys. Appreciate you weigh in and it was definitely an exciting night and there will be many more to come. Gentlemen, appreciate your time, Will, Errol and Robert.
All right, check in top stories now. The pilot saved his passengers, but was killed in a Goodyear blimp accident in Germany. Pilot told four passengers to jump when the blimp was just off the ground. It then shut up in the air and exploded before crashing into flames.
Federal judge could rule today on whether an overturn a decision that same sex marriage ban in California is unconstitutional. That initial ruling came from a judge who later acknowledged he's gay.
And the Army is replacing the black beret as part of its combat uniform. Troll cap, like a camouflage baseball cap with a flat top, will be standard wear now.
It may yet turn out to be one of history's biggest heists after the invasion of Iraq. The U.S. followed up on its deployment of troops with plane load after plane load of cold, hard cash. Well, that money was meant to help develop the Iraq, but apparently billions of dollars has disappeared. Here's Brian Todd.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): In the months after Shock and Awe, the mantra was spend and rebuild. At least, that's what U.S. officials hoped. They airlifted billions of dollars in bricks of $100 bills in Iraq to pay for reconstruction.
Now the U.S. inspector general for Iraq reconstruction has some unsettling news about more than $6 billion of that money.
STUART BOWEN, U.S. INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION: It has not been properly accounted for, and that is the purpose of our continuing audit.
TODD (on camera): If some of it was stolen, who do you believe stole it?
BOWEN: I don't want to speculate on who the potential criminals might be, but this money was delivered to Iraqi control, and we have in the past had a number of cases reported to us about interim ministers who did steal.
TODD: Who was responsible for safeguarding that money?
BOWEN: During 2003 and 2004, that money was under the aegis of the Coalition Provisional Authority, the entity that was created to govern Iraq after the fall of Saddam Hussein's regime. TODD (voice- over): Stuart Bowen says, after that, the Pentagon and the Iraqi government shared responsibility for safeguarding some of the money, and that it was the Pentagon who asked him to investigate.
Contacted by CNN, a Pentagon spokesman cited that probe, but also said the investigation found that "All of these funds remained under the control of the government of Iraq at all times."
This is not U.S. taxpayer money. The cash belonged to Iraq in the first place. The inspector general says the money was from the Development Fund for Iraq, which had taken Iraqi oil money diverted by international sanctions and stored it at a Federal Reserve facility in the U.S.
(on camera): But Americans may still be on the hook for some of this. Bowen says Iraqi officials have indicated to him they may go to court to reclaim the lost money. What if they win?
(voice-over): Congressman Henry Waxman chaired several hearings on fraud in Iraq when he was head of the House Oversight and Government Reform Committee.
(on camera): Is Congress on the hook for some of this if the Iraqis successfully reclaim that money?
REP. HENRY WAXMAN (D), CALIFORNIA: Well, I hope not, but the truth of the matter is the U.N. said to the United States, you are now entrusted with this money. You have a fiduciary responsibility for the Iraqi people to use it for their benefit. And now we can't account for $6.7 billion.
TODD: An official at the Iraqi embassy didn't respond to comments that the Iraqis may have stolen some of the money, but he did say the U.S. inspector general's report has shown the United States failed to put into place accountable and transparent financial controls to safeguard Iraqi funds.
So, both sides now firmly pointing the finger at each other.
Brian Todd, CNN, Washington.
(END VIDEOTAPE) PHILLIPS: By the Mexican government's count, more than 15,000 people died last year in the crossfire of the country's drug war. That's about 40 victims a day. And a lot of guns that killed them came from right here in the U.S.
Jeanne Meserve joining us now with the details. Jeanne?
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Kyra, yet another report saying weapons from the U.S. are fueling those Mexican drug wars. Not every weapon recovered in Mexico is traced, but according to a new report which cites statistics from the Bureau of Alcohol, Tobacco and Firearms, in 2009 and 2010, of the 29,284 firearms that were traced, 20,504 or 70 percent were sourced in the U.S. The report also says that most of the firearms traced to an original owner in the U.S. came from Texas, California and Arizona.
The three Democratic senators who released the reporter are urging Congress to reinstate the assault bands' -- assault weapons ban that expired in 2004 and require background check for all firearms' purchases, including those at gun shows. Both, as you know, are highly controversial steps which have failed before, Kyra.
PHILLIPS: Yes. And is the U.S. already taking steps to try to stop the flow of guns to Mexico?
MESERVE: Yes, the ATF has spearheaded something called Project Gun Runner which attempts to intercept both weapons and ammunition headed for the Southwest border. It has had some success, but it's also been criticized for failing to target really high-level traffickers. And the ATF is under fire for allegations that it let gun smugglers perfect hundreds of weapons so the ATF could then trace them. Senator Charles Grassley said the ATF lost track of hundreds of them, and there's a congressional hearing on that subject tomorrow, Kyra.
PHILLIPS: All right, more to come. Jeanne, thanks.
Several CNN analyst thinks a star was born at the New Hampshire debate. Talking about Congresswoman Michele Bachmann making her entrance in Manchester and making her debut as a presidential candidate. But how much do you know about this mother of five and foster mom of 23?
(COMMERCIAL BREAK)
PHILLIPS: Well, you're going to hear a lot more from Michele Bachmann in the coming months. She went into last night's debate a conservative Congressman from Minnesota, and some analysts think she came out a star.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R), MINNESOTA: I filed today my paperwork to seek the office of the presidency of the United States today, and I'll very soon be making my formal announcement.
(END VIDEO CLIP)
She really came out with a bang, that's for sure. Some of our analysts declared her the debate winner. Carol Costello here to tell us more about her and her background. Definitely a fascinating woman as you learn more.
CAROL COSTELLO, CNN CORRESPONDENT: She is a fascinating person. And let's talk about her performance in that debate because it was something, Kyra. Political pundits have a crush on Republican candidate Michele Bachmann today. The adjectives they're using you wouldn't believe. She gave a star performance, they say. She's top- tier. Even pithy. If you don't know what pithy means, I'll tell you. It means having substance and to the point.
Seriously, though, Michele Bachmann found her footing last night with one zinger after another.
(BEGIN VIDEO CLIP)
BACHMANN: As president of the United States, I will not rest until I repeal Obamacare. It's a promise. Take it to the bank, cash the check, I'll make sure that that happens.
We need everybody to come together. Because we're going to win. Just make no mistake about it. I want to announce tonight, President Obama is a one-term president! We'll win.
(APPLAUSE)
(END VIDEO CLIP)
COSTELLO: She made Herman Cain, another Tea Party favorite, fade into the woodwork. But the bigger questions are number one, can she win the primary? And number two, can she win the general election. Independent CNN analyst John Avlon says the Republican establishment doesn't exactly love Michele Bachmann. And despite a large campaign warchest - yes, Kyra, she has lots of money. She needs, though, that Republican establishment to win the nomination.
As far as the general election goes, Avlon said Bachmann really doesn't stand a chance. She needs independents to win, and despite her charm, Bachmann's views are too conservative for many Americans. She has said God encouraged her to run for higher office and that government should be limited to what is in the Constitution, things that don't exactly resonate with many independent voters.
PHILLIPS: All right, you mentioned a lot of money. Heck, how about a lot of kids? Five of her own and 23 foster kids?
COSTELLO: Yes, she's a born-again Christian, and she and her husband believe in family values. She took in these 23 foster kids, probably grown by now. She sent them to public schools, wasn't satisfied with the quality of their education, and that inspired her to run for political office, which was for the school board. She didn't win, but the inspiration kept her going to gain higher office. And here she is, candidate for president of the United States. PHILLIPS: Wow. That's definitely going to get more interesting as we move along. Carol, thanks.
COSTELLO: Sure.
PHILLIPS: New regulations and guidelines on sunscreen labels. The FDA - the move, rather, is designed to clear up confusion for consumers. The labels show whether the product is braod-spectrum. Here's what that means: it protects against both ultraviolet rays, A and B. UVA rays are the main cause of skin cancer. And too many UVB rays can cause serious sunburn.
Rules on SPF numbers are also changing. They tell people when they need to reapply the product, consumers will no longer see numbers higher than 50 because the FDA doesn't know if the bigger numbers actually provides more protection.
Well, President Obama bound for Puerto Rico. That's a little footnote in history. But it's his future that inspired this trip.
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PHILLIPS: For the first time in half a century, a sitting U.S. president is making an official visit to Puerto Rico. No, it's not a beach vacation. Barack Obama is going for the votes. Millions of votes that could prove decisive in the 2012 election.
Ed Henry at the White House. Explain more, Ed.
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Kyra, you're right. I mean, if you look at the U.S. map, there's some battleground states where there are a lot of Puerto Rican voters. I mean, Florida would probably be the biggest prize that the president has his eyes on. Of course, always a battleground. 847,000 Puerto Ricans. You look at states like New Jersey, Pennsylvania another key battleground. 366,000 Puerto Ricans. Connecticut, Illinois also high population centers, but those are states the president would be expected to have. Ohio, Virginia would be two others to highlight. 94,000 Puerto Ricans in Ohio; 73,000 in Virginia. Remember, that was a big state that President Obama flipped from the Republicans to Democrats in 2008. Virginia, he wants to have it. Has to have it again in 2012.
But beyond the politics, you have to talk about the substance as well. As a candidate, the president said he would appoint a task force to look at issues affecting Puerto Rico. That report has now come out. Something the president will likely point to today. Take a look at pros and cons of statehood. Looking at best way to grow some jobs, what's the best way to improve the health care system in Puerto Rico.
And yes, immigration reform as well. Even though Puerto Ricans are U.S. citizens, part of the U.S., the fact of the matter is when you talk to immigration experts, they say the broken immigration system in the U.S. results sometimes in people who can't get in the mainland U.S. going over to Puerto Rico, waiting there, trying to get their way into the U.S. Illegal immigrants, that can swell the population in Puerto Rico and add to problems with job creation, et cetera, that I highlighted.
So, there's a lot of big issues that affect Puerto Rico, and obviously, a lot of people hoping the president's visit highlights that, Kyra.
PHILLIPS: Yes, we're talking about five decades here, since the president made an official visit. We're going back to JFK. Why did it take so long?
HENRY: Yes, I think there's probably a lot of people in Puerto Rico wondering why presidents in both parties seemingly have ignored them. That's why some issues, if the president highlights them, could be very important. We should note Lyndon Johnson did made a brief stop in 1968 at an air base. Gerald Ford was there. Now, I mentioned in my last live shot that he was there for a speech and a summit. My colleague, Ann Compton of ABC, said she was at that summit and it was not a drive-by. That he was there for the whole - I believe it was a G-7 summit, not G-8 as it is now. So, Gerald Ford was there as well. But you're right, JFK was the last time there was an official visit, and undoubtedly that's part of the reason why the president is trying to reach out to Puerto Ricans with this visit. To say, look, leaders in both parties have not paid a lot of attention to the island. Maybe it's time to do that.
PHILLIPS: All right, we'll see if it makes an impact. Ed Henry and the White House. Ed, thanks.
Boston Bruins force a game seven in the Stanley Cup finals. Highlights in less than 10 minutes.
(COMMERCIAL BREAK)
PHILLIPS: Stories developing later today 11:55 a.m., President Obama arrives in Puerto Rico. 2 p.m., Vice President Joe Biden kicks off the first of three meetings to be held this week on deficit reduction.
And 7:30 this evening in New York, the Broadway play "Spiderman: Turn Off The Dark" officially opens.
Well, the GOP candidates didn't have much to say about each other in last night's debate. Their target: President Obama and the economy. So, how will President Obama punch back? Will he punch back? E.D. Hill with us here for our primetime preview. And E.D., I'm sure you're going to be talking about politics "In the Arena" tonight. So, what stood out to you?
E.D. HILL, CNN CONTRIBUTOR: Well, I think it kind of helped us highlight what we're focusing on through the rest of this campaign. There were battlegrounds to sort of fight over. I think there was more of a middle contender battleground, that would be Pawlenty and Romney. Obviously Romney took that. More of the more conservative between Santorum and Bachmann. She clearly took that. And the more principled say exactly what you mean, whether people like it or not, was more the McCain and -- I'm sorry, Herman Cain and Ron Paul. And Paul clearly took that. So, I think you've gotten a little bit of differentiation already in this field of candidates.
PHILLIPS: All right. The Iowa caucuses seven months away. I know you've been looking into the primary calendar, how it's going to affect the race. What have you found?
HILL: Well, it still sort of in flux. And as you recall back in 2008, Florida was one of the states that really threw this into a free-for-all because they got sick of playing second fiddle. You've got states like Iowa, New Hampshire. Lovely states, lovely states. However, not necessarily that representative of the general population and how people vote in a general election. And yet having inordinate power in determining who the nominee for each party would be. So, you had Florida trying to moving theirs up, and it just through things up in the air.
What they've done is added in South Carolina and Nevada, hoping by putting them up near Iowa and New Hampshire, they'll start getting a more well-rounded picture of what would be palatable when it comes around to the general election.
And as you know, they are completely different things. Primary voters are one thing. General election voters are something entirely different. People going to the right or left. Then all of a sudden, they've got to come back to the center. And frequently to do that, they either have to go back on pledges they've made during the primaries or statements they've made, and then they're accused of flip-flopping. So, it's a tough thing.
This year, we've got a number of states that are still trying figure out exactly where they are going to be in the primary process, and there are some carrots and sticks being extended in terms of getting all of the delegates. If you hold it later, all-or-nothing type thing. And I think it will be interesting to watch to see how the placement of South Carolina and Nevada does impact it.
PHILLIPS: E.D. Hill, good to see you. Make sure you tune in, 8 p.m. --
HILL: Good to see you.
PHILLIPS: Likewise. "IN THE ARENA," right here on CNN.
All right. Into the final frontier. For the last time, the shuttle Atlantis prepares for the space program's final launch. Next hour, we're going to speak to the pilot about the mission.
Plus, time is running out as Minnesota prepares for a government shutdown. If lawmakers don't agree on a budget by the end of the month, park and highways, rest stops will actually be closed just in time for the Fourth of July. That's all coming up, 11:00 a.m. Eastern.
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PHILLIPS: Stanley Cup Finals going down to the seventh game between Boston and Vancouver. The home team still has not lost in this series. Canucks had little going for them last night. Goalie Roberto Luongo has been stellar at home, rotten on the road. First period, Bruins' Brad Marchan goes top-shelf on Luongo. Give him a team rookie record of nine postseason goals. Bruins had an explosive record. Four goals in four minutes, 14 seconds. A finals record, by the way. Boston wins, 5-2. Game seven tomorrow night in Vancouver.
So, we've heard what the pundits and political experts think about last night's Republican presidential debate. Now let's hear what voters think. Our Martin Savidge is in Greenville, South Carolina.
(BEGIN VIDEOTAPE)
MARTIN SAVIDGE, CNN ANCHOR: Meet the Carnes. Brad, former military turned executive, business wife Wendy, a realtor, two daughters, Margaret and Rebecca. Politically --
BRETT CARNES, GREENVILLE, S.C. RESIDENT: I would say they probably tends more to the left and I'm always right.
SAVIDGE: Last presidential election wars in Iraq and Afghanistan mattered most to them. This time it's the failing economy, which in a reality job Wendy has seen and felt.
WENDY CARNES, GREENVILLE, S.C. RESIDENT: It's been hard. I work the same or more hours as I did five or six years ago and making a third of the money.
SAVIDGE: And that is just how the debate started, with the economy.
JOHN KING, CNN HOST: What would you do as president of the United States to create jobs?
HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: The thing we need to do is to get this economy boosted.
TIM PAWLENTY, (R) PRESIDENTIAL CANDIDATE: What we need is an economy that is unshackled.
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: What this president has done has slowed the economy.
SAVIDGE: All of the candidates blasted the Obama administration. But 35 minutes in, Brett still wasn't hearing what he wanted to hear.
BRETT CARNES, DEBATE WATCHER: That is the stupidest answer I've ever heard. To me, it's just been political posturing, getting their big talking points out, you know? They got to check those blocks. I haven't heard anything about me.
SAVIDGE: And even after two hours, the couple still hadn't heard enough when it came to making the economy better, frustrated by a format that stressed short answers.
BRETT CARNES: It's taken several years for us to get into the situation. You won't solve it in a 30-second answer.
SAVIDGE (on camera): Did you see a candidate up there on that stage you think can beat President Obama?
BRETT CARNES: Yes. I saw seven. How many did you see?
(LAUGHTER)
WENDY CARNES: I think it would be interesting to watch one of them debate him.
SAVIDGE: So I do see a little bit of a divide here?
BRETT CARNES: Just a little.
(END VIDEOTAPE)
SAVIDGE: A friendly divide nonetheless. Kyra, here's the thing. This is a family that is not ready to commit to any candidate that they saw last night. This was a listening opportunity, and it was a chance to hear from some of those candidates they weren't really familiar with. Michele Bachmann, Tim Pawlenty or Herman Cain. And this is that opportunity. They're going to mull it over, but it's a long way to go before any final decisions are made, at least down here in South Carolina. Kyra?
PHILLIPS: Marty, thanks.
That does it for us. We take it to someone who I know watched that entire debate --
SUZANNE MALVEAUX, CNN ANCHOR: Did you manage to stay up?
PHILLIPS: I told you, our team, you know how early we rise --
MALVEUAX: Oh, very early.
PHILLIPS: Very few made it through the whole way. That's why we had TiVo, OK? And the twins --
MALVEAUX: Three-month old twins. That helped.
PHILLIPS: Now, they watched. That's a whole other story.
MALVEUAX: Yes, they're up. I'm sure they're up. Thanks, Kyra.
PHILLIPS: You bet.
