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Debt Deadline Approaches; Rupert Murdoch Apologizes; WSJ CEO Les Hinton Resigns; 8-Year Old Brooklyn Boy Murdered, Dismembered; Whitey Bulger's Life and Crimes

Aired July 15, 2011 - 16:00   ET

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

T.J. HOLMES, CNN ANCHOR: We're at the top of the hour here now. I'm T.J. Holmes. Brooke Baldwin has the day off.

And we start in Washington. The White House and Republican lawmakers are engaged in a high-stakes game of chicken over the country's debt limit. And, today, both sides held separate news conferences. Nobody's blinking just yet. You may have heard that Senate leaders Mitch McConnell and Harry Reid are trying to hash out a plan that would be palatable to both sides.

And there's a separate push for a balanced budget amendment. But when the president gave his news conference this morning, he suggested the United States does not have time for any of those proposals.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We don't need a constitutional amendment to do our jobs. The Constitution already tells us to do our jobs and to make sure that the government is living within its means and making responsible choices.

And so this notion that we're going to go through a multiyear process instead of seizing the moment now and taking care of our problems is a typical Washington response.

We don't need more studies.

We don't need a balanced budget amendment. We simply need to make these tough choices and be willing to take on our bases.

And everybody knows it.

(END VIDEO CLIP)

HOLMES: So, we're still getting closer and closer to August 2. Now, that's the day when the Treasury warns the U.S. will have to decide which bills it will pay, which ones they won't pay.

And with no talks scheduled at the White House today, House Republicans are offering up their even new plan. Take a listen to the majority leader.

(BEGIN VIDEO CLIP) REP. ERIC CANTOR (R-VA), HOUSE MAJORITY LEADER: We're going to bring a bill forward next week, otherwise known as the Cut, Cap and Balance bill, to provide a balanced approach so that we can demonstrate that we are getting things under control and that the people who put us here can gain some confidence that we're going to begin to live like they do around their kitchen tables and in their businesses, stop spending money we don't have, and begin to manage this debt and deficit down to balance it.

(END VIDEO CLIP)

HOLMES: All right, let's turn to Capitol Hill and our congressional correspondent. Kate Bolduan is there for us.

Kate, I hope you did better at keeping up with all this stuff than I did. All these press conferences every couple of seconds, I felt like actually I was watching sports on the weekend, didn't know which channel to watch here.

KATE BOLDUAN, CNN CORRESPONDENT: Yes.

HOLMES: But so many we're trying to keep up with here and now so many plans. And the GOP has a new one. What's in it?

BOLDUAN: Well, there's a lot in it, but I will tell you this, that we should read this as kind of a different strategy, first of all, than -- the president came out and said that he wants the congressional leaders to come back with serious plans.

Well, the House Republicans, they went behind closed doors and they emerged with this very different plan. It's not necessarily new. It's something that's been pushed and very much supported by the more conservative members in the House for quite some time.

But this new plan, the real crux of it is that it would make raising the debt ceiling contingent on amending the Constitution, passing a balanced budget amendment, which is a very tall order.

Listen here first to why Speaker Boehner said they're bringing this and pushing this now. Listen here.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: We're in the fourth quarter here. Time and again, Republicans have offered serious proposals to cut spending and address these issues. and I think it's time for the Democrats to get serious as well. We asked him to put forward a plan, not a speech, a real plan. And he hasn't. We will.

(END VIDEO CLIP)

BOLDUAN: Now, here's a little bit of reality, T.J.

If this would even -- even if this would pass the House, it's not likely to go very far. It would not likely go very far in the Democratic-controlled Senate. And really here's what people are kind of thinking about it. It could end up and likely will end up as more of a symbolic vote for Republicans, allowing Republicans to be on the record saying that they are standing for the principles that they voted for, at the same time, trying to continue these negotiations at the White House as well on the other side of Capitol, working out a way out between the top Republican and Democrat there, while those things kind of continue at the same time -- T.J.

HOLMES: OK. And we're all excited about the U.S. women's soccer team.

BOLDUAN: We sure are.

HOLMES: I didn't know it was at top of mind for a lot of folks on Capitol Hill, too. But congressional Democrats -- we talked about these dueling news conferences. They had one of their own, talking about the debt, but also talking about the U.S. women's soccer team. Let's listen to this and try to figure it out.

(BEGIN VIDEO CLIP)

REP. XAVIER BECERRA (D), CALIFORNIA: Here in Washington, D.C., we could take a few lessons from the women's soccer team, because win or lose we do this together as a team.

(END VIDEO CLIP)

HOLMES: Well, rah-rah. I mean, seriously, is there really a chance of teamwork, or he is just trying to make some cute little analogy?

BOLDUAN: I'm sure he was trying to be cute and trying to get a good sound bite, which he very well did. Teamwork, I will say at the moment, T.J., the reality is that both sides are not budging from their positions.

Republicans are saying that tax hikes are a no-go and not a good idea at this point in a floundering economy. And Democrats are saying they will not -- that new revenue needs to be a part of any deal that is going to require some changes to entitlement programs, which they have vowed to very much protect.

At the same time, I have been told by an aide that Speaker Boehner has cleared his schedule. So, we will see how things develop over the weekend. All of the members, all of the negotiators that have been in these White House meetings, I don't probably need to remind you at this point, T.J., they have all agreed on one point, that they do not want to miss this August 2 deadline.

And that's why I will tell you many people are paying more attention to that way-out plan, if you will, that last-ditch plan that is being worked on still at this very moment between Senator McConnell and Senator Reid on the Senate side. They think that may be a way out of this impasse, because the negotiations have not be bearing fruit, if you will, at the White House so far -- T.J.

HOLMES: Yes, everybody agrees on point one, but we need them to agree on points two, three, four, five, six, and seven. That's the problem here.

BOLDUAN: I'm with you.

(LAUGHTER)

HOLMES: Kate, good to see you, as always. Thank you so much.

BOLDUAN: Thanks, T.J.

HOLMES: We will stay on this topic.

And one thing that President Obama made clear in his news conference today is that he's hopeful that some kind of grand bargain can be worked out.

Jeanne Sahadi is with CNN Money. And she joins me now from New York.

Is a grand bargain still possible at this I guess almost late date? We're getting a little close.

JEANNE SAHADI, CNN CORRESPONDENT: Well, I'm not in Washington and no one who's even reporting on it is in the room, so we can't say for sure.

But it certainly doesn't sound like it based on what the negotiators have said coming out. President Obama is hopeful and I'm glad he's hopeful and I hope he gets his way. And so does Standard & Poor's, which is a credit rating agency, which this week said, you know what? We're going to expect two things from you, from lawmakers. We want you to raise the debt ceiling in a timely fashion, and we want you to come up with a credible, sustainable plan, a substantial plan like the $4 trillion grand bargain. If you don't, the United States could be downgraded.

So it's really important that the people who are negotiating do think about that, because it's going to be very costly for Americans if our credit rating is downgraded. Interest rates could go up. Stocks could fall. It's not pretty.

HOLMES: All right, and you have been writing about this and reporting about this extensively. And I want to read something that you wrote to our viewers. This was about no tax increases, at least what the Republicans are saying.

And you wrote: "Fiscal experts from the left and right have said repeatedly that any credible plan to reduce the country's debt load, which is to say a plan the country can stick to, will have to involve changes to spending and taxes."

OK. If that's the prevailing view, it's hard to get a consensus, but, still, if that's the prevailing view, Republicans are still sticking to their guns on it, though.

SAHADI: Well, right.

And you have to ask them about that. They make a lot of good points and they get a lot of credit for making this issue front and center. But what we're running the risk with, with everybody just sticking to their views, is that we're putting the debt ceiling at risk, because if we just raise the debt ceiling and we don't have a debt reduction plan to go with it or lawmakers don't show any progress towards getting to one within a couple of months of raising the debt ceiling, we're going to be downgraded.

S&P said there's a one-in-two chance that we will be downgraded in the next 90 days. So this is really urgent that everybody roll their sleeves up and get busy. I'm not in Washington, so I can't attest to what folks down there are doing, but it doesn't look good from up here.

HOLMES: All right, Jeanne Sahadi, we appreciate you, as always, for us today. Thank you so much.

(NEWS BREAK)

HOLMES: Much different tone to this next story we have been keeping an eye on this week that has really gripped the nation and a particular neighborhood in New York, the gruesome killing of an 8- year-old boy.

We're learning more now, disturbing new information about the man charged with murdering and mutilating him. We have got a former New York police detective that's joining me next to talk about the case. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Well, we have got some new information just coming in to us about that News Corp. hacking scandal.

Let's head to our Susan Candiotti for more on this.

And, Susan, it seems like more and more heads continue to roll involved in this scandal.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: That's right, the latest casualty, and it's someone who lives right here and works here in the United States.

It is Les Hinton, and he's the chief executive officer of "The Wall Street Journal." And he has had a long history with the News Corporation. In fact, he worked for 12 years in various titles of News International, working also in Great Britain.

That included being the -- heading up the publications including "The Times," "The Sunday Times," "The Sun," the "News of the World" that we have been hearing so much about, so very important. And here in the United States, he served under various titles, including chairman and chief executive of FOX television stations.

So, we don't know much more about this, other than the fact that right now on the website for the Wall Street Journal, they are reporting that he is to resign today. And, again, this comes on the heels of the resignation of - I'm sorry. In Great Britain, of course.

HOLMES: Yes, the CEO of New International, Rebekah Brooks. Rebekah Brooks.

CANDIOTTI: Exactly. Brooks, thank you very much, who stepped down with a resignation letter, saying that she denies that she was aware of anything that led up to the hacking scandal in the U. K., but did step down. And she was a protege of Rupert Murdoch for many, many years, had been with the company for 22 years, herself. So, second bombshell today. Also, on the heels of the News Corporation saying that tomorrow in Great Britain, it is issuing a full-page ad with a big banner ad saying, "We are sorry." So, this could be one more aspect of that, T. J.

HOLMES: And we probably need to make sure we're clear with our viewers here. We hear he had connections to other papers and things he's doing here in the United States and working. I guess there may not be any indication yet, but he may is stepping down because of the connections that he had with the papers over there. There's no indication yet that he is stepping down because of any allegations for something he was doing with the U. S. holdings of Murdoch's empire.

CANDIOTTI: Well, T. J., we simply don't know. Because there isn't any information being posted about that yet, but certainly we're working on that. You know, it's an open question, but, certainly, this is happening on the heels of a grand investigation in the U. K. and now also in the United States. The FBI launching its investigation.

This is day two of it, looking into a report that started in the U.K. involving a claim that someone was contacted by "News of the World," contacted a private investigator here in New York who allegedly was being asked by "News of the World" to hack into phone records and asked him to hack into phone records of 9/11 family and victims.

And this is a key element of the FBI's investigation. The FBI saying and U. S. Attorney General Eric Holder saying, "It's far too early to say where that investigation will lead," but certainly nothing is off the table and we have yet to see what road the FBI's investigation will take.

HOLMES: All right. Susan Candiotti, we appreciate you hopping on for us with this still-developing story. More breaking news in this scandal. We appreciate you. Thanks so much.

And up next, we are, again, learning more about that disturbing story out of New York, learning more about the man charged with murdering an 8-year-old boy. We still have a former New York police detective, Steve Kardian, who was gracious to stand by as we got into that breaking news about News Corp, but he is still standing by. We'll talk to him right after this break.

(COMMERCIAL BREAK)

HOLMES: Well, a New York City neighborhood is still reeling from just a horrific crime. The man charged with kidnapping and killing an 8- year-old boy is now under suicide watch as he awaits a mental health evaluation. The psychological exam was requested by his defense lawyers who say Levi Aron claims he hears voices and hallucinates. Police say Aron confessed to smothering the boy to death. Then he told them and showed them what he did with the body.

Let me bring in Steve Kardian. He's a former police detective and investigator for over 30 years. Steve, what is that like for the investigators who seem to have a confession now. They have all this evidence and then they hear he's about to go get a mental evaluation. He may not be mentally stable. How do you change your investigation? Or does it seem now that you just have that feeling that, wow, he might not be fit to stand trial.

STEVE KARDIAN, FORMER NY POLICE DETECTIVE: No, this is par for the course, T. J. How could someone commit a crime like this and not have a mental illness? And law enforcement's going to have to deal with that. They're really dealing with two major incidents here. They're looking to enhance their current case against Aron and they're also looking to identify other potential victims and bodies that may be from here to Memphis and possibly even Israel.

HOLMES: And, Steve, something you said to one of our producers before the interview. You said, "Hey, it's also likely law enforcement will discover he's a serial killer. Why do you say "likely" because people don't start their criminal careers with crimes like this?

KARDIAN: Yes, you just don't start out like this, T. J. When they look into his background, I think they're going to find a lot. You know, we see in the Hasidic community, they police themselves. They rarely go to law enforcement. They handle the matters themselves. So any prior incidents may have been handled in-house, if you will, by the Hasidic community.

HOLMES: Well, how much of this for the investigators have they transitioned to try to figure out about this man's past? Because in this case, they said, like i said, they have this confession. They have this video surveillance. They have this evidence. They have weapons. They have all of this. They have the victim's body. So, are they still more so focusing and still have a lot of work to do on this crime? Or are they focusing their attention on what else he possibly could have done?

KARDIAN: Oh, they're going to talk to anybody and everybody that knows him. They're going to create a profile for him. They're going to see where he's been, what he's done. Their investigation is just beginning. And their long-term investigation is going to involve the FBI, the Memphis police authorities and likely the Violent Crime Apprehension Program through the FBI where they collect data across the country on sexual predators and serial killers.

HOLMES: And tough question here to have to ask you, but these reports that he had stored parts of the kid's body in his freezer. This sounds to you, at least, like these could have been trophies that a killer was keeping from his victims?

KARDIAN: Yes. Serial killers often keep trophies from their victims. And that's one of the things they're looking for amongst his property,is looking for other possible trophies from other possible victims. So,a bizarre case, a sad case, a horrendous case, but the investigators have their hands full.

HOLMES: Steve, what does this tell you as well that he would allegedly confess here. For someone to be caught in such a crime and to be accused. I know he pleaded not guilty, by still he apparently had this confession. What does it say that a man would confess and even write out details of a crime like this?

KARDIAN: You know, not knowing his mental status, law enforcement walked in. He certainly wasn't expecting this them to arrive at his door. The door was ajar. They came in. They asked a direct question. He uttered a spontaneous statement that pointed them towards the refrigerator. So, again, his mental status, it's hard to deliberate and hard to discuss what it is, but law enforcement got a lucky break. They did a great job in investigating this case and they're going to continue to enhance it and make sure that he's away for beyond life.

HOLMES: Steve Kardian, good to talk to you as always, but it's too bad this was the topic we're talking about today. But thanks so much and you enjoy your weekend.

KARDIAN: My pleasure.

HOLMES: OK, we're coming up on the bottom of the hour now. He was one of the FBI's most wanted. The notorious mobster, Boston mobster, who eluded the feds for 16 years, but the story of Whitey Bulger is a long way from being over. Coming up, a preview of this weekend's special report, "Stone Cold Killer." We're back in just a moment. Stay with me.

(COMMERCIAL BREAK)

HOLMES: Well, it took one of the FBI's most intense manhunts to finally nab reputed Mob boss, James Whitey Bulger, but where does his story start? Deb Feyerick reports in CNN Presents special this weekend. Here's a preview for you.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Bulger's life of crime started early. Arrested in his teens, he was robbing banks by age 20. His shock of blonde hair earning him the name Whitey, a name he is said to despise. With his rugged good looks and reckless flamboyance, Bulger imagined himself Boston's version of Hollywood gangster, Jimmy Cagney. But instead of red carpets, he was headed to Alcatraz. A string of bank robberies landing Bulger 10 years in federal prison at age 25. He did his time and upon release vowed he would never, ever go back.

GERALD O'NEILL, BOSTON GLOBE REPORTER (voice-over): They had no hard proof.

FEYERICK (voice-over): Boston Globe reporters, Dick Lehr and Gerald O'Neill, ultimately uncovered the deal he cut to make sure of that.

O'NEILL (voice-over): He got out of prison in 1965 and we started doing research in 1988 and he hadn't gotten so much as a parking ticket.

FEYERICK (voice-over): Whitey Bulger, fresh from prison, went to work as a mob enforcer, but Bulger wanted more and federal investigators say he'd stopped at nothing to get it.

O'NEILL: Then he went on a killing rampage. I think it's like a month he killed six guys in 1992.

DICK LEHR, BOSTON GLOBE REPORTER: Yes, he was ambitious in making his move.

FEYERICK: And he was making his move with this man, Steve Flemmi, aka, "The Rifle Man." Among their alleged victims, Flemmi himself testified, his own girlfriend, Debra Davis.

TOM FUENTES, FORMER FBI ORGANIZED CRIME CHIEF: Back in those days before DNA was in use to identify victims, he would personally get involved in cutting off the fingers or hands of the victims and extracting their teeth.

FEYERICK: Tom Fuentes, now a CNN consultant, ran the organized crime squad for FBI headquarters.

FEYERICK: Give me three words that describe Whitey Bulger?

FUENTES: Stone cold killer.

(END VIDEOTAPE)

FEYERICK: Now, Whitey Bulger has entered a plea of not guilty for 19 charges of murder. His defense lawyers have their work cut out for them. There are some 17,000 documents. There have been multiple trials, among them the trial of the rogue FBI agent, John Connelly who destroyed the reputation of Boston's FBI bureau. There've also been trials involving mob associates. So, there's a lot of testimony that implicates Whitey Bulger. The question is does he have any information of any value that he could use to deal. T.J.?

HOLMES: Deb, it's a story that people are fascinated by and you've got it for them this weekend. So thank you and let me tell our viewers, be sure to tune in Sunday night, 8:00 eastern for CNN presents the special, "WHITEY BULGER, STONE COLD KILLER."

At the bottom of the hour here now, stay with us because that lady, she's been called stone cold before, but in a much different way there in Washington, D.C. In Washington, D.C., that's different.

GLORIA BORGER, CNN POLITICAL CORRESPONDENT: We're warm.

HOLMES: Yes, warm and fuzzy. Gloria Borger joining me after the break to take us behind the debt talks in your "Political Ticker." Stay here. (COMMERCIAL BREAK)

HOLMES: Time for your CNN politics update and let me bring in Gloria Borger. She joins me this hour with the latest from the "Political Ticker." Let's listen Gloria first to the president today talking about the possibility of getting a deal done on this debt ceiling then I'll ask you about it on the other side.

(BEGIN VIDEO CLIP)

PRES. BARACK OBAMA (D), UNITED STATES: Speaker Boehner in good faith was trying to see if it was possible to get a big deal done. He had some problems in his caucus. My hope is that after some reflection, after we walk through all the numbers this week and we looked at all the options that there may be some movement, some possibility, some interest to still get something more than the bare minimum done. But we're running out of time.

(END VIDEO CLIP)

HOLMES: All right, Gloria, I spent a good two hours this afternoon coming up with the first question I was going to ask you and this is what I came up with. Now what?

BORGER: Well, good. I'm going to have to spend a few more hours coming up with the answer. Look, there are a few options out there. It will not surprise you. The big deal the president talks about, a medium deal that he would probably settle for and a punt deal which he might also have to settle for.

So right now, what happens now is I think the action really moves to Capitol Hill, T.J. You've got the Democratic leader of the Senate, the Republican leader of the Senate getting together, trying to come up with a deal that their membership can vote for and that House Republicans can actually vote for.

So Mitch McConnell has come up with this ingenious way to get the debt ceiling passed. It's a backup plan, but to get the debt ceiling passed so that his Republicans can still vote against it but it could still pass and guess what? Next week they also get to vote on a balanced budget amendment so they can all go home and say we voted for a balanced budget amendment, we didn't vote for the debt ceiling but somehow miraculously it got passed. Don't ask me how. It's byzantine and arcane but he's working it out. So we'll see if that becomes the deal.

HOLMES: Okay and Gloria, it seems, well it doesn't seem. He has. The president has been talking a lot lately in front of -- not just talking, but also taking questions. Why was he having another press conference today? What has his strategy been in having all of these? And also on the end of this answer, can you tell me, didn't you notice a different tone from the president today?

BORGER: Well, you know, yes, I did. He's had three press conferences in two weeks, which is kind of stunning. And the one he had a couple of weeks ago, he was quite accusatory towards Republicans, right? Today what you saw was a president who's still trying to cut a deal. But his message today was kind of twofold. First of all, he wanted to reassure the American public and the markets that everybody sitting in that room does believe that there has to be a way to raise the debt ceiling that the understand the enormity of it. But he also wanted to make his case directly to the American people and to say I'm the grown-up in the room and by way, I'm on your side. Because recent polls show that most Americans would rather have a package that includes spending cuts and tax increases. So the president essentially came to the podium, as presidents can, and said I'm fighting for you. I'm on your side and they're on the wrong side. So obviously using the bully pulpit in a way only presidents can do.

HOLMES: Only presidents can. Gloria, good to see you as always. We appreciate you. You enjoy your weekend.

BORGER: You too.

HOLMES: All right. and to our viewers, I got some new developments to pass along to you in the story we were just telling you a moment ago. We were talking about the Dow Jones CEO stepping down. We've got his resignation letter that he signed to Rupert Murdoch. That is coming your way next.

Plus Casey Anthony is leaving jail this weekend. And she's already getting offers. How about a $1 million offer for an interview? But she still has something to cry about. We'll explain. Stay here.

(COMMERCIAL BREAK)

HOLMES: Again, the news we are following this hour, we're just getting word that Les Hinton, who is the CEO or I should say was CEO of the Dow Jones has sent his resignation letter to Rupert Murdoch. He is stepping down as head as the CEO of Dow Jones after this whole News Corp hacking scandal. Now you might be wondering why is a guy who's working here in the U.S., head of the Dow Jones, what does that have to do with anything? Well, Les Hinton once served as the head of News International. That is the company, the parent company of that tabloid, "News Of The World" that's accused of using some of those tactics to hack into the phones of 9/1 1 victims, a murder victim as well.

He sent his letter now, Les Hinton has, to Rupert Murdoch. Part of it I'll just read to you. He says at the top, "I have watched with sorrow from New York as the "News Of The World" story has unfolded. I have seen hundreds of news reports both actual and alleged misconduct during the time I was executive chairman of News International and responsible for that company. The pain caused to innocent people is unimaginable." Just a part of it but again, Les Hinton who is currently or had currently been serving as head of the Dow Jones stepping down because of his connection to "News Of The World" and News International, serving as the head of News International at one point. That was back in 2007 when he actually left. I do believe I have that right. Yes, left in 2007 but still stepping down. That was during that time period when some of that alleged misconduct was taking place. Much more on these developments certainly here on CNN throughout the day. Also, we'll turn now to Casey Anthony. Leaving jail and a special call to Atlantis. Time to play a little reporter roulette. We begin with David Mattingly in Orlando where Casey Anthony is set to walk out of jail on Sunday. David, hello to you.

DAVID MATTINGLY, CNN CORRESPONDENT: Hey, T.J. Well, when Casey Anthony leaves jail on Sunday, the questions of where, when and how are not being made public for safety reasons. Orange County authorities have made it very clear that they're not going to be responsible for her safety beyond that of a normal citizen once she leaves the parking lot of that sprawling jail facility you see behind me. But until then, they're taking every precaution to make sure she gets away safely. There's going to be an elaborate setup involved. We may not find out that she has left here until after the fact, but they have allowed a group of three journalists, a video photographer, a still photographer and a reporter to be embedded at the jail. They will observe Casey Anthony's departure. They'll watch what she does and then after she is away from the facility and safely away, we don't know how long of a period that might be, they will come forward and share what they saw and share the video, so we will all see Casey Anthony departing from this jail after the fact, T.J.

HOLMES: All right. David Mattingly, thank you. We do want to stay in Florida though with our John Zarrella. He is there as well. That's home base where he is of Shuttle "Atlantis." Good to see you. They're busy up there, of course, right now those astronauts but they had to stop and answer the phone today.

JOHN ZARRELLA, CNN CORRESPONDENT: Yes, I was going to say T.J., imagine you're flying 245 miles above the earth and the phone rings and on the other end is the White House and they say stand by, the president is on the line for you. They all came to attention pretty quickly up there and in fact, the president did call the combined crews of the space shuttle and the International Space Station. He said he was calling out for a pizza and somehow got them on the line. And then he went on to congratulate the crew.

OBAMA: I just want to say how proud I am of all of you. Congratulations to NASA, to all our international partners and all the personnel past and present who have spent countless hours and untold effort in making the space shuttle and the International Space Station a unique part of our history.

ZARRELLA: The president also asked about an American flag that the crew had brought up there. And Commander Ferguson of the space shuttle told them that indeed they had brought a special American flag, one that had flown on the very first space shuttle commanded by John Young and Bob Crippen back in 1981. And that they were going to leave it up there as part of the ceremony when they say goodbye to the space station crew on Monday morning. That should be some kind of -- some ceremony Monday, T.J., when the last space shuttle to ever visit the space station pulls away. T.J.?

HOLMES: That's just so sad. Some of these images the last we'll get to see shuttles do. All right, John Zarrella, good so see you as always buddy. You enjoy your weekend. Thanks so much. ZARRELLA: Yes, sir.

HOLMES: Coming up here next, the tale of a police officer accused of killing not one, but two women he once loved. It might sound like a made-for-TV movie. And it will be a made-for-TV movie if the man at the center of the dramatic true story doesn't put a stop to the production of the movie. Plus, dramatic video played at the trial of an alleged serial killer. You will hear him in his own words. Stay with me.

(COMMERCIAL BREAK)

HOLMES: "SIT ROOM" with Wolf Blitzer coming up at the top of the hour. Wolf has a preview for you now. Wolf, hello to you again sir.

WOLF BLITZER, CNN ANCHOR: Thanks. It's going to be a busy weekend I suspect as far as the debt ceiling negotiations are concerned. There's, you know, the president had a news conference today. Our Dan Lothian, he'll be joining us right at the top of the hour to update us on what's going on behind the scenes. I've also got an interview coming up with Steny Hoyer, the number two Democrat in the House of Representatives. He with Nancy Pelosi, they've participated in all of the negotiations in the White House in the Cabinet room. He's going to take us inside and tell us a little bit from his perspective what's going on. We'll hear from him plus all the news from London. Still some dramatic stuff coming in involving Rupert Murdoch and his media empire. All of that and a lot more coming up right here in "THE SITUATION ROOM" at the top of the hour. T.J.?

HOLMES: Wolf, we'll see you here in about ten minutes. Thanks so much.

BLITZER: Thank you.

HOLMES: Yeah, just laughing, having coffee, describing the woman who broke his heart. Then moments later, talking to police about the women whose bodies were found at his house. Some chilling videotape shown to jurors in a Cleveland courtroom. That's next.

(COMMERCIAL BREAK)

HOLMES: A breakup with a woman he loved may have lead Anthony Sowell to snap. But the violent deaths that happened to women in his house were just bad dreams. That's what the alleged serial killer describes in chilling police interrogation tapes being played at his trial today. Sowell is facing the possibility of the death penalty for the deaths of 11 women. Their bodies were found in and around his home in Cleveland. I want you now to listen to his voice and watch his demeanor as he shares information with detectives in this report from our affiliate WKYZ.

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UNKNOWN CORRESPONDENT: For the first half hour or so, the mood is light. Sowell asks for a cigarette and a cup of coffee. At one point he even laughs. But it isn't long before Sowell's demeanor changes. DETECTIVE: Let's just get this over with and talk about what's going on in your home. Okay? Now, you know we've been to your home.

ANTHONY SOWELL: Okay, what, what, just ask the question.

DETECTIVE: Okay, upstairs on the third floor where you stay, we found some folks up there.

UNKNOWN CORRESPONDENT: It's then that Sowell clams up and starts rocking back and forth.

DETECTIVE: You know what, let's talk about the first time the anger got a hold of you.

SOWELL: I don't know if it's like that.

DETECTIVE: Rage?

SOWELL: No. I can't explain it.

UNKNOWN CORRESPONDENT: He told detectives it started when he broke up with his girlfriend.

SOWELL: I mean, it was just I just, like, had a breakdown or something.

DETECTIVE: So Tone, your girlfriend's not one of the people we found in your house.

SOWELL: No, no. She works right downtown.

DETECTIVE: Can you tell us the names of some of the people?

SOWELL: I don't know, man.

DETECTIVE: Even street names?

SOWELL: I need some time to --

DETECTIVE: Okay.

DETECTIVE: You said that you wanted to help some of these families get some closure. What can you tell us that we can help these families?

SOWELL: I don't know nothing like that. Maybe if I had some pictures. But you want names? I don't.

DETECTIVE: Street names?

SOWELL: I can't -- I can't -- no, I can't remember.

DETECTIVE: I can understand.

SOWELL: Maybe pictures. That's the best I can do.

DETECTIVE: What about this, Tone. Can you tell me how many people are there?

SOWELL: I don't know. I just don't remember that. I just don't remember.

(END VIDEOTAPE)

HOLMES: Anthony Sowell, a former marine there, said he heard voices. He has entered an insanity plea. We'll continue to follow the trial.

And while another trial has now concluded, Casey Anthony has been found not guilty of murder, but a defamation suit is waiting for her when she walks out of prison. A woman by the name of Zenaida Gonzalez who got caught up in Anthony's lie about Zanny the nanny taking her daughter Caylee, well, she's now suing Casey Anthony. And that's on the case today. Sunny Hostin, good to see you as always. Thank you so much.

SUNNY HOSTIN, CNN CORRESPONDENT: Good to see you, T.J.

HOLMES: What kind of a case does she have here against Casey Anthony?

HOSTIN: Well, no one is going to know anytime soon T.J. because the parties just got out of a hearing. I have a bit of breaking news. Newly appointed Judge Lisa Munyon granted Casey Anthony's motion for protective order. She bought apparently the defense's claims that Casey Anthony is in a really frail mental state after being incarcerated for three years. Her attorney today just said that he's very concerned about her mental state and he wants experts to evaluate her. So the judge granted the defense motion for a protective order, rescheduled this deposition for October 8, 2011. We don't even know at that point if a deposition is going to happen because this defense team T.J. has said that they're going to fight tooth and nail. They've indicated that this is something that won't even make trial. And interestingly enough, he said, her attorney, Charles Green, he received seven death threats against Casey Anthony just today. So this is a saga that we are going to be hearing about for a long time coming. October 8 is the next time the deposition is --

HOLMES: So if I'm hearing you right, this just wrapped up and so they essentially said, give her some time. She's not in a mental state to deal with this right now? I'm just making sure I'm interpreting you correctly.

HOSTIN: You are interpreting it correctly. That is what the defense argued and that is what the judge agreed to do. The judge agreed to grant this protective order to protect Casey Anthony from being deposed next Tuesday and pushed it back all the way until October 8, 2011. And again, we don't know where it's going to be held, though.

HOLMES: And a reminder to our viewers here. There's this woman, Zenaida Gonzalez, she said was afraid her kids would be taken away. Her name was dragged through the mud. Listen to her right quick and I'll bring you back.

ZENAIDA GONZALES: My thought was I'm going to lose my children. Because if they're accusing me of kidnapping, what's the first thing they're going to do, they're going to, you know, want to investigate your children. If I'm a good mother, why do I need to go through that?

HOLMES: And to quickly wrap this up. Yes, it might be down the road, but does she have a case?

HOSTIN: I think it's going to be a difficult one to prove, T.J. She's proving that the defamation damaged her. Now, we now know that Zanny the nanny was a lie, that Casey Anthony made it up. She's sort of been exonerated, right, Zenaida Gonzalez in the court of public opinion. Everybody knows she wasn't Casey Anthony's nanny. So I wonder how she can prove that she was damaged. So I don't know that this case is going to go anywhere, but that's the wonder of our judicial system. You can sue people, you can have your day in court and we'll see what happens.

HOLMES: Did you just say the wonder of our judicial system?

HOSTIN: I did T.J.

HOLMES: Very nice. Very careful with the words. All right, let's turn now to Drew Peterson here and maybe people might recognize that name. Let's remind them. This is the former police officer who is charged with the 2004 murder of his third wife, Kathleen Savio. Now they're trying to here Sunny make a TV movie about him, about his story, about the case. He wants it stopped. Can he do that?

HOSTIN: I don't think so. I don't think his arguments are going to hold up in court. Of course he's claiming that the filmmakers don't have the right to make a film about him without his permission. But the first amendment T.J. of the constitution trumps his right to give permission, especially about events that have been depicted already in a book he didn't challenge and so I would say no, he's not going to win the day with this legal argument, but I've got to tell you, I was a little surprised that he wanted to stop this film. Rob Lowe is playing him, T.J. I think that's a bit of a gift for Drew Peterson.

HOLMES: He's supposed to be honored by that? We're seeing Rob Lowe here now. But you said he said he doesn't have much of a case, but what right do any of us really have? If somebody decided they wanted to make a movie about Sunny Hostin and your life or your history based on articles that are written or stuff they get on the Internet, I mean, for all of us, can you stop anybody from doing that or do they have a right to?

HOSTIN: They have a right to if it's an accurate depiction of real events. I mean absolutely some celebrities do have a right to stop things like that because they make money with their name and with their likeness. But for the most part if a filmmaker is depicting accurate events they're going to be able to do it, T.J. And hey, I mean, if someone fabulous depicts me, I don't know if I would try to stop that film.

HOLMES: Who would you take depicting you, Sunny?

HOSTIN: Oh, I don't know. I don't know. I'm not sure. But if it's somebody good, someone in my ear is saying Halle Berry, that's a big compliment. So I would definitely take that one.

HOLMES: That is a nice compliment. All right. Sunny, we appreciate you as always. Are you on duty this weekend? Casey Anthony, big day. She's getting out of jail on Sunday. Will you be doing some commentary this weekend? Or are you taking this weekend off?

HOSTIN: I may very well, but certainly I'll be talking about it on Monday morning.

HOLMES: All right. Well, you have a good weekend, whatever you might end up doing. Sunny Hostin, good to see you as always. And to our viewers, thank you so much for being here with me in the CNN NEWSROOM. I of course will be here with you tomorrow and Sunday for CNN Saturday and Sunday morning but right it's all Wolf's.