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Former Player on Sandusky's Sex Charge; Voters Asked When Life Begins GPS in Police Work; Confronting Scandal; Child Rape Charges Rock Penn State; Cain To Set Record Straight; Sarkozy and Obama Caught On Open Mic; Follow That Car!; Cain: "Not An Ounce of Truth"; Italy OKs Budget Reforms; Iran Blasts Nuke Report; Holder: "Never Again" on Flawed Program; Attorney General Grilled on "Fast and Furious"; Nine Philly Schools Could be History; Voters Deciding on Sunday Alcohol Sales

Aired November 08, 2011 - 13:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: CNN NEWSROOM continues right now with Randi Kaye. Hey, Randi.

RANDI KAYE, CNN ANCHOR: Hi, Suzanne, thank you very much.

An iconic coach and an unconventional candidate. The latter insists he's in it to win it. The former may be on his way out of his scandal.

The alleged sex abuse scandal unfolding at Penn State is far from over with so many questions still unanswered. The University, the sports world and the community are just beginning to digest the horrifying allegations that former defense coach Jerry Sandusky groped, fondled and had sex with young boys, one as young as 7 or 8 years old. The state's Attorney General says more alleged victims and more charges could be coming.

The aftershock of this is already moving far beyond Sandusky who was a trusted pillar at Penn State and threatens to taint the golden legacy of famed head football coach, Joe Paterno. "The New York Times" is reporting that Joe Paterno's tenure as a coach will be over soon and Penn State is planning his exit. The time cites two people briefed on conversations with top Penn State officials who says the Board of Trustees has yet to determine the timing.

If this is a sign of anything, Paterno was scheduled to hold his weekly news conference about an hour ago. Reporters, including our Jason Carroll, were there ready to ask Paterno about Sandusky, the rape and abuse charges and what Paterno knew, but that news conference was canceled. Instead, Penn State issued this statement saying, due to the ongoing legal circumstances centered around the recent allegations and charges, we have determined that today's press conference cannot be held and will not be rescheduled.

So, the big issue still remains who knew what for how long and how was the situation with Sandusky dealt with? Penn State's athletic director, Tim Curley, and Gary Schultz, the senior vice president of finance and business are accused of lying the a Grand Jury. And what the Attorney General says was there, quote, "inaction that allowed a child predator to continue to victimize children for many, many years." Both were arraigned and released on $75,000 bail on Monday and both have resigned from Penn State.

Sara Ganim has been covering this story extensively for the local paper in central Pennsylvania, "The Patriot-News," she was also planning to attend Joe Paterno's news conference and joins us now from University Park.

Sara, nice to see you. A lot of people are asking where was Paterno through all of this? So, what do you make of the fact that the conference -- his news conference was canceled and is there any word -- any confirmation there from what "The New York Times"" is reporting about a possible exit for him?

SARA GANIM, CRIME REPORTER, "THE PATRIOT-NEWS": Well you know, Joe Paterno's story through all of this has been that what he knew was that something happened in 2002 that was inappropriate, but he didn't know the extent of it.

As far as what happened right now here today, our statement from the Paterno camp is that he was disappointed that this press conference was canceled, that he was looking forward to holding it because he wanted to -- he wanted to talk about -- to address the concerns that people are having and to -- more importantly for him, talk about the team. And he said canceling it was really unfair to the players who have no part in this scandal -- so-called scandal that's been unfolding around us.

KAYE: Give me a sense of what's happening there on campus. I mean, what is the reaction to this scandal that is unfolding and to Paterno still being there?

GANIM: I mean, the reaction on campus right now is shifting from this shock -- this initial shock to kind of this feeling of hurt and not understanding what happened. These people that they look up to and idolize, why, you know, they didn't make decisions that these students feel maybe they should have made. But to some degree, today I have heard from students -- you know, Paternoville sprouted up today. That's the camp that -- students camp out in front of the stadium before football games for front row seats.

And they do that for several days. That started today. It's in full force. And I have talked to some students today who have said they plan on attending the game, they don't want to punish the players, they don't want to diminish their Penn State pride, that as the University as a whole, they still feel like Penn Staters, this is just a huge letdown.

KAYE: Before I let you go, I have to ask you about these two cases from 1998 and 2009. The two mothers of these two victims, victim one an victim six as they're called, did speak to police, reported this to police. Have you had a chance to speak with either of these women?

GANIM: I spoke to both of those women yesterday. Both of them feel betrayed. That's really how they feel. The one from the -- from 1998 feels horrible that this had to happen to the -- to the kid from 2009. The mother from 2009 feels horrible that the other one wasn't believed before because it led to her son being -- becoming a victim. So, they're both feeling this just utter betrayal from a lot of -- from a lot of different places, from the system, from Penn State, from several people who are supposed to be, you know, pillars of the community who they feel let them down.

KAYE: That's quite a story that is unfolding there on campus. Sara Ganim from "The Patriot-News," appreciate your time, thank you.

And in about four hours, Herman Cain plans to, in his words, set the record straight about the latest, and by far, the most graphic sexual harassment claims dating back to his time at the National Restaurant Association. Already, the GOP presidential hopeful accused his latest accuser of, quote, "totally fabricating the story" she first told this time yesterday and repeated last night and this morning on CNN. Here's Cain telling ABC's Jimmy Kimmel about his staff watching him watch Sharon Bialek's explosive news conference.

(BEGIN VIDEO CLIP)

HERMAN CAIN, PRESIDENTIAL CANDIDATE: And they could see steam coming out of my ears. And the feelings that you have when you know that all of this is totally fabricated, you go from anger, then you go -- you get disgusted, you try to control yourself to make sure you watch this thing all the way through. And I was listening closely. And then when it was all over with, I says, well, I know what we've got to do, because there's not an ounce of truth in all of these accusations.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SHARON BIALEK: For the very first part of what he said, anger, frustration, that's exactly how I feel. Scratch the end, though, because you know what I want to say to Herman is, if not for yourself, OK, to come forward and admit this, what is his wife going through? You know, that's who I feel for the most in this whole thing.

(END VIDEO CLIP)

KAYE: We'll hear more from both sides and from our analyst in "Fair Game" at the bottom of the hour.

Another big story that we're following right now that could strain U.S.-Israeli relations. Reuters reports that a microphone gaff allowed journalists to listen in between a private conversation between President Obama and French President Nicolas Sarkozy. And both men apparently offered some unflattering comments about Israeli prime minister Benjamin Netanyahu. Brianna Keilar joins us now from the White House with more on this.

So Brianna, set the record straight for us here, what was said?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Well Randi, you know, according to this Reuters report it was really the French president, Sarkozy, who said something rather unflattering. And it appears, certainly by the French translation, that President Obama didn't really take the opportunity to come to Israeli prime minister Netanyahu's defense.

According to Reuters, a small group of reporters heard this and it was French president Nicolas Sarkozy who said I cannot bear Netanyahu, he's a liar. And the according to a French interpreter, so obviously the president's comments were translated into French, he said you're fed up with him, but I have to deal with him even more often than you. And again Randi, we're trying to independently confirm this, but this is what Reuters is reporting at this hour.

KAYE: Any comment from the White House at all on this?

KEILAR: White House press secretary, Jay Carney, as you can imagine, was pressed on this. He gaggled aboard Air Force One en route to Philadelphia where the president was pressing for his jobs plan again today. And he said that he didn't have a comment on the reported conversation, but he went on to emphasize solidarity between the U.S. and Israel and actually to paint daylight between the U.S. and France on that recent vote for including Palestinians in membership of a U.N. agency.

Right now, as you know, U.S. policy is that Palestinians shouldn't be seeking membership in any U.N. agency to sort of simulate or move towards statehood. But really, the U.S. is saying that they need to sit down for direct negotiations with Israelis, a process that is (inaudible) at this point -- Randi.

KAYE: Brianna Keilar at the White House for us. Brianna, thank you.

A community and a program in turmoil over sex abuse charges. How Penn State alum are reacting to the charges surrounding former coach, Jerry Sandusky. Former Penn State player, LaVar Arrington, will join us live next.

But first, former heavyweight boxing champion, Joe Frazier, fell to liver cancer yesterday at the age of 67. In a way, that is almost impossible to imagine today. Frazier and Muhammad Ali had the world transfixed in their trilogy of fights in the '70s which included the epic thrilla (ph) in manila. The bell was to sound on his career with 32 wins, four losses and one draw. Ali said in his statement that the world has lost a great champion. We agree. Smokin' Joe, you are today's "Rock Star" and you will be missed. For more on the legend of Frazier, Brooke Baldwin will speak to Mike Tyson live right here on CNN in the 3:00 p.m. Eastern hour. Ain't nothing like the real thing baby.

(COMMERCIAL BREAK)

KAYE: If you follow college football, it goes without saying, Penn State was known for its stellar, squeaky clean reputation. You could say Penn State was seen as the gold standard. Its iconic head coach, Joe Paterno, practically considered a saint. But that could change from the fallout of what some are calling the worst scandal in college football history. "The New York Times" is reporting that Joe Paterno's tenure as a coach will be over soon, and Penn State is planning his exit. "The Times" cites two people briefed on conversations with top Penn State officials who say the Board of Trustees has yet to determine the timing.

Clearly, this no longer is just about Jerry Sandusky, the former defensive coordinator. The timeline of what is being alleged is important here. According to a Grand Jury, Sandusky allegedly victimized eight boys. At least one as young as 7 or 8 years old. This is a brief overview. Sandusky is alleged in some cases to have raped or forcibly sodomized young boys over a period of more than ten years going as far back as 1994 while he was still the defensive coordinator at Penn State.

In 1998, Sandusky was reported to University police by an alleged victim's mom for touching and taking a shower with her young son. After a lengthy investigation, the case was closed and no charges filed. A case Penn State officials, including athletic director, Timothy Curley, and senior V.P., Gary Schultz, later would say they didn't know about. The following year, 1999, Sandusky retired from Penn State. But keep in mind, he retained access to Penn State's facilities as a part of his retirement contract. Perhaps the most disturbing case allegedly occurred in 2002 when a graduate student testified that he saw san Sandusky in the showers at the school's football locker room having intercourse with a boy estimated to be 10 years old. 2002 is key because that's where both Curley and Schultz come into play. Both were told about the case but were alleged to have swept it under the rug.

Most recently, the Attorney General began the Grand Jury investigation after Sandusky was reported to the authorities for allegedly fondling and having oral sex with an 11-year-old boy and was barred from a school district in 2009. So, that brings us to today. Very few know Penn State football Joe Paterno and Jerry Sandusky as well as LaVar Arrington, who was an all American linebacker at Penn State and went to play for the Washington Redskins.

LaVar is on the phone with us joining us today from D.C. LaVar, thank you for coming on the program. I know this is a tough topic for you. Your final season at Penn State was in 1999 which also happened to be Sandusky's last year on the Penn State coaching staff before he retired. So first, what is your reaction to these allegations?

LAVAR ARRINGTON, FORMER PENN STATE PLAYER (via telephone): Just very shocked. Just shocked at all of these developments -- I mean, just listening to you go through the laundry list of everything that has taken place, just very shocked and very -- you know, it's just one of those feelings where you feel -- you feel almost betrayed, you know.

You know you feel like you were a part of, you know, something that maybe wasn't what you thought it was. I mean I think that would be probably the clearest or the easiest way of trying to put it in words because it's kind of difficult to know a man the way that you knew -- I knew Jerry and, of course, him being a part of what's going on.

KAYE: What is he like? What is Jerry Sandusky like?

ARRINGTON: What was he like? You know in my dealings with Coach Sandusky, I mean he seemed to be the type of person that you wanted to pattern yourself after, as ironic as that may sound. You looked at the way he was involved with the community and how he gave back.

And as a football coach, I mean I think that kind of spoke for itself, the reputation that was forged through the years of hard work by him. You know it's becoming known as the university, known as linebacker u. I mean he's -- he did a countless amount of things that seemed to be selfless acts. And it came across as someone that set a high example and a standard as to how you were to conduct yourself.

And I attribute a lot of things that I did and being as active with young kids, it started with my mother being a school teacher and always having me around, but ultimately being around more and more people that seemed to be in that frame of mind of giving back and helping young kids to have a better life. That's what it appeared that he was -- that was the type of man that he was.

KAYE: I read your op-ed in "The Washington Post." It's a really powerful op-ed. I would recommend for anyone to take a look at it. But it sound to me like you're a bit torn. I mean because you do write that you want Jerry, as you call him, to be innocent on one hand, but you also want the truth to come out. And if this did indeed happen, you say it's also shattered the image of the man that really meant so much to you.

ARRINGTON: I mean, how would it not, you know? How would it not? I mean I think about all the times that we had together. You know those things -- it's not like, OK, something horrible has happened now, I take all those things are taken back. You know this -- these things took place in my college career, you know. So there's no way of going back over it and doing it differently. So you look at what -- I look at what I became and what I developed into and I'm very proud of it. I'm very proud of the person that I am. And I carry the badge of honor of being a Penn State person every single day of my life.

And so there are a lot of different emotions that kind of are a part of this for me right now because it's not so much selfishly -- I know I wrote selfishly I wanted to basically hope that he was innocent. It really isn't about being innocent or guilty at this point in my book. I want to be very clear. I have not been vocal because it's based upon defending Jerry or defending Joe Paterno. I have been a defender of children. I have always loved being a mentor and being an example to young adults and young children and trying to show them a better way.

And, quite frankly, I just had an opportunity to confirm if it was OK for me to disclose. One of the kids that I have been mentoring and had been working with who fights with bouts of depression is based upon the fact that his sister had been sexually molested.

And so if people are wondering why I am so passionate about talking about what's going on, it merely presents a platform to raise awareness about what goes on in some of these children's lives. And hopefully people won't just sit there and get caught up into passing judgment on to the people that are involved in this, rather get involved with trying to be part of the solution that lowers the numbers and ultimately tries to eliminate something as heinous as taking advantage of our most precious commodity, which is our children.

KAYE: Well said. Lavar Arrington, we certainly appreciate you calling into the show today. Thank you so much.

ARRINGTON: No problem.

KAYE: What makes a person? In Mississippi, that answer could change everything. That's our "Under Covered" story and it is next.

(COMMERCIAL BREAK)

KAYE: 2012 gets all the attention. So Election Day 2011 is our pick for "Under Covered" story of the day. It's today, by the way. Three states are choosing governors, several cities picking mayors, but voters in Mississippi are facing the biggest question of all, what is a person? Ballot initiative 26 defines personhood as "every human being from the moment of fertilization, cloning or the functional equivalent thereof."

If that sounds simple, well, trust me, legally, politically, it is anything but. My colleague, Mallory Simon, at cnn.com, has been covering what's called the personhood amendment and joins me now from Atlanta.

Mallory, this is such an interesting story. I mean if an embryo is a person, then abortion would be homicide, period, right? Is that the thinking here?

MALLORY SIMON, WRITER/PRODUCER, CNN.COM: Well, that's certainly part of the discussion that's happening. You know we know that abortion would be outlawed. It would be criminal if this were to pass today. But the question is, is, how do you prosecute something like this? That's some of the complaints that we're hearing from people opposing this bill, is that that sort of -- the laws are not in place to say what would happen after this bill would pass, this amendment to the Constitution.

KAYE: And what, besides abortion, would Prop 26 actually outlaw?

SIMON: So we know for sure that it would impact the morning after pill, for example, intrauterine devices, anything that would destroy a fertilized egg. It's brought into question a lot of the conversation surrounding birth control pills. A lot of people don't know how their birth control works. And so one of the questions is, you know, is what I'm taking as a woman, would that be illegal because some birth controls work by making it impossible basically for a fertilized egg to implant on the lining of the uterus. It also has --

KAYE: And what about in the case -- what about in the case of rape or incest?

SIMON: This is one law that does not have an exception for rape or incest. In most states where there are abortion laws, that is one of the exemptions. But people who support this bill say a child is a child is a child. It doesn't matter how that happened. But that's something that every child should be brought to full term, should have the chance to have a life.

KAYE: And even, from what I understand, I mean even some anti-abortion activists are pretty leery about this movement.

SIMON: You know one of the concerns that some people have is that this bill, because it is so ambiguous, because there aren't a lot of the pieces in place, the legislation that would follow to carry this out, they're saying, you know, this might go a little bit too far and could hamper our ability to challenge Roe v. Wade, which is one of the ultimate goals of the personhood movement. So they're saying we've got to be careful here because we might be stepping too far. That we may end up really strengthening Roe v. Wade.

KAYE: It will be interesting to see how this vote goes. Mallory Simon, thank you so much. Appreciate it.

SIMON: Thank you.

KAYE: GPS tracking. Should police be allowed to follow your every move without permission? What the Supreme Court's decision could mean to your privacy.

(COMMERCIAL BREAK)

KAYE: Welcome back.

You won't find GPS in the Constitution, not as an acronym anyway, but it found its way to the highest court in the land. And police in your town, you can bet they're watching. A case being argued today asks whether cops have the right to plant GPS locators on suspect's cars without asking judges for warrants.

Police in D.C. did just that to a drug suspect in 2004 and eventually the man led them to 97 kilos of cocaine and $850,000 in cash. He was convicted and sentenced to life in prison, but a federal appeals court threw his conviction out on Fourth Amendment privacy grounds. Justices will have the final word. But until they do, I want to hear from retired Phoenix Police Sergeant Andy Hill and from Sunny Hostin, former federal prosecutor and now a legal contributor to "In Session" on truTV.

Thank you both for coming on.

Sergeant Hill, make the case. The floor is yours. Make the case for unfettered use of GPS in police work.

ANDY HILL, RETIRED SERGEANT, PHOENIX POLICE DEPARTMENT: Well, Randi, it's been that way for many years. The Supreme Court has ruled in the past, as for many years, that you can go ahead and as long as that vehicle is on public property and you put the GPS device on the outside of the vehicle, you don't need a warrant for it. It's very helpful tool for law enforcement to develop probable cause. And as long as it's not abused, it's important that they retain that tool.

The thing that's important now is, as technology grows, it's OK, I think, for the Supreme Court to look at it and make sure that everything is still the same standard. And I think that when they do that, the laws will continue to rule that law enforcement has a right to go ahead and use that tool.

KAYE: Sunny, what do you think? What's your response?

SUNNY HOSTIN, CNN CONTRIBUTOR: Well, this is a bit different, Randi. I mean, certainly we're talking about placing a GPS on a car for an undetermined amount of time. In this case, it was well over a month. I think it's very clear that that violates our fourth amendment.

I mean, as a people we are entitled to be free from unreasonable searches and seizures without a warrant. When you get a warrant, you've got to show probable cause that a crime existed.

I don't think that we want our law enforcement community to be able to place something on our cars for any reason or for no reason at all and to track us throughout our days and days and days without any reason for doing so.

It really is very improper. I'm not advocating that we shouldn't have GPS usage during investigations. I think it's an invaluable tool, but this sort of unfettered discretion given to law enforcement is just improper under the fourth amendment.

KAYE: Let me read both of you the part of the Supreme Court ruling from the 1980s. A person traveling in an automobile on public thoroughfares has no reasonable expectation of privacy in his movements.

Nothing in the fourth amendment prohibited the police from augmenting their sensory faculties with such enhancement as science and technology afforded them.

Now back then, Sunny, the technology was radio transmitter. So is GPS any different?

HOSTIN: It is different. It's much more intrusive. I mean, let's face it. With the state of technology now, Randi, you put that GPS on the car remember with no warrant and you get to track somewhat someone is doing almost every step of the way.

I mean, people live in their cars. Let's say in California, you're in your car all the time. You're going to church. You're doing all of these things throughout your day and someone can track you like that. I believe there is an expectation of privacy in that sense.

Yes, you're on a public road, but you're in your car, the four corners of your vehicle are yours. I practiced law in Washington, D.C. I'm a former federal prosecutor in D.C., but I think this goes way beyond the pale.

SGT. ANDY HILL, PHOENIX POLICE DEPARTMENT (RETIRED): Randi, this is so clear. This is not a change if you're putting something on the outside of the vehicle that's not intruding into the vehicle. The GPS exists inside a telephone. We're talking about taking a device that attaches to the outside. Looking at the technology -- HOSTIN: You need a warrant to wiretap.

HILL: You don't need a warrant to put a GPS tracking device on a car. Wiretapping is a separate issue. That issue has to do with probable cause. How do police develop probable cause if they can't look and watch a vehicle?

HOSTIN: Well, you certainly can look.

HILL: It's like putting the cart before the horse. You have to look at the horse first.

HOSTIN: No, no. You can certainly look. There's no question about it. This is different.

HILL: Then you get probable cause and then you get a warrant. What Sunny is talking about doesn't make sense.

KAYE: Andy, let me stand in here quickly. The question is why shouldn't police have to tell a judge that they want to follow someone? I mean, why should it be this difficult?

HILL: Because it's a public right-of-way and a public place. You can go ahead and watch people. You can watch with your eyes and you can go ahead and follow people. It's not a right to drive. It's a privilege.

So when you're in a car, it's a piece of property. Law enforcement -- don't get me wrong. Law enforcement has to make sure they follow the law. But you have to develop probable cause to get a warrant. In order to develop probable cause, you have to have reasonable suspicion.

And one of the ways to get that is follow people. The case we're talking about involved drug dealers. I'm sure Sunny doesn't want the drug dealers on the street and distributing those kilos of cocaine to children.

HOSTIN: Well, of course not. But the bottom line is this is very broad. You have to admit this is very broad. I agree with you. I think that certainly you can watch someone.

You don't have any expectation of privacy when you're walking down the street or when you're driving in your car. But you cannot cross that line by placing a device on the four corners of your car, which is your property.

I would argue that's almost trespassing on your property and do it for days and days and days and for over a month. That crosses the line. I think law enforcement officers certainly --

HILL: That's when you have to do an investigation, Sunny.

HOSTIN: Go and get a warrant.

KAYE: All right, listen, we could go on and on about this. Obviously, it's a hot button issue for a lot of people. We'll see what the court decides. Sunny and Andy, thank you both very much.

The fourth woman to accuse Herman Cain of sexual harassment has this to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Just admit it. Step forward, admit it and move forward.

(END VIDEO CLIP)

KAYE: But that isn't what he's doing. His response to the allegations are next in "Fair Game."

(COMMERCIAL BREAK)

KAYE: It's time now to move past the talking points where everything is "Fair Game." Herman Cain says he's disgusted by new claims of sexual harassment.

He also says he's ready to tackle allegations from this woman, Sharon Bialek head on. He'll do it at a news conference coming up later this afternoon.

We'll hear a little from Cain and from his accuser in just a moment. But first, I want to bring in CNN contributor, Maria Cardona and Republican strategist, Doug Heye.

Welcome to you both. Doug, you first. What do you think Herman Cain needs to say at this news conference today?

DOUG HEYE, REPUBLICAN STRATEGIST: I don't know specifically what he needs to say. But the overall tone, he needs to be clear, needs to be consistent and he also needs to be convincing. Convincing is that most important word.

I'll tell you, you know, I had a lot of crises I was dealing with at the Republican National Committee last year and I have a certain sympathy for what the campaign is going through.

I've made similar mistakes and fortunately avoided similar mistakes. But they need to be consistent and convincing with their message if they hope to move on.

KAYE: I want to ask you both about this statement that Cain put out making reference to Bialek's financial troubles. She addressed that today on "AMERICAN MORNING." Let's listen to that.

(BEGIN VIDEO CLIP)

SHARON BIALEK, HERMAN CAIN ACCUSER: Like millions of other people out there, you know, I'm struggling. I could have actually sold my story, but I didn't. I want -- my whole objective is to tell the truth and also help other people out there who may have been many similar situations. Initially, I went into this hoping every hope of hopes that Herman would step forward. That was my primary goal. Just step forward, admit it and move forward.

(END VIDEO CLIP)

KAYE: Maria, to you on this one, I mean, is that a good strategy by Herman Cain attacking his accuser.

MARIA CARDONA, CNN CONTRIBUTOR: No, absolutely not. And here's the problem. He now has attack as liars and impugned the credibility of four independent women who have come out with these accusations.

That is not going to cut it. I feel even stronger about this, Randi, ever since I found out that I actually know one of the accusers. She used to work for me when I worked for the government. She was the utmost in terms of a professional employee.

Her credibility in my opinion is beyond reproach. She was the consummate team player. She was classy. She was a hard worker, and so everything that I think is there in terms of the allegations, in terms of this particular accusation to me is true.

What Herman Cain is going to have to do is come out and explain why it is that the only thing that he can say is that they're all liars. One other thing, Randi, I think it's important.

This woman who used to work for me had nothing absolutely to do with Democratic Party politics. She's not a Democratic operative. She's in fact a career civil servant, nothing to do with party politics whatsoever.

KAYE: That's what I was going to ask you. So Maria, thank you for pointing that out. You might have seen Herman Cain on a late night show not long after the allegations came up.

He was on the Jimmy Kimmel show and he actually said that there wasn't an ounce of truth to these new accusations. But he also talked about how much money that has come into his campaign as a result. Listen.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: The American people are saying we are sick of gutter politics and it's not going to work. They basically said they're sick of it with their money. That's the most powerful way that people can say that they're looking for a new voice and new type of leadership in Washington, D.C.

UNIDENTIFIED MALE: Do you think the other candidates will follow suit and hire women to charge them with sexual harassment?

CAIN: If they're smart, they will.

(END VIDEO CLIP)

KAYE: I mean, really, Doug. Is this something that he should be making light of? He was basically making a mockery of this whole thing in all of these accusations. HEYE: You know, one of the real assets Herman Cain has brought to this campaign is being a likable figure, being someone that voters really are drawn to. But you also want to make sure you show respect and that you treat serious issues very seriously.

It's not a Dean Martin celebrity roast, after all. I think that was a mistake, but hopefully, you'll see Herman Cain move past this, not only in his remarks later today, but as we have a debate later this week.

To where we can start talking about, even though questions may come up, jobs and the economy and issues that affect voters every day that we've all focused on here in Washington and certainly throughout the country.

KAYE: Maria, can he survive this do you think?

CARDONA: Well, it all depends on how he handles it today. If he comes out and actually tells the truth, whether it was a misunderstanding, although that would be hard to believe at this point, but just tell the truth.

Calling them liars is not going to cut it. Randi, he is asking the voters and he talked about this. He talks about the voters. He's asking the voters of this country to trust him with the most sacred oath of office.

How can he then come out and say that all these women are liars without putting the truth in terms of what is happening. He is doing exactly the opposite of what he needs to do for the voters to trust him.

KAYE: Well, he's been explaining it the way he thinks it all happened. So we'll see what he does say today, Maria Cardona and Doug Heye. Thank you very much.

That is "Fair Game." And you can watch Cain's news conference right here, by the way, on CNN. It happens live at 5:00 p.m. Eastern Time.

It is the latest country to feel the impact of the European debt crisis. The parliament is supporting budget reforms, but it may not support the prime minister. Do you know what country we're talking about? It is not Greece. We'll have the answer next for you in "Globe Trekking."

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KAYE: "Globe Trekking" today begins in Italy, the latest country to face the impact of the European economic crisis. The Italian parliament today passed a budget reform measure designed to boost confidence in Italy's ability to pay its debts.

That was a win for Prime Minister Silvio Berlusconi, but it may just be a temporary victory. More than half of Italy's lawmakers abstain suggesting that Berlusconi may soon face a no confidence vote that would force him to step down. Now to Iran where they're denouncing a report released today by the International Atomic Energy Agency. The report says Iran has mastered nuclear weapons capabilities and has made more progress than previously believed.

Iran insists its nuclear program is for peaceful purposes. And Iran's President Ahmadinejad says his country doesn't need a bomb to stand up to the west.

Attorney General Eric Holder has this to say about the flawed gun program, "Fast and Furious."

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ERIC HOLDER, U.S. ATTORNEY GENERAL: This should never have happened and it must never happen again.

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KAYE: More on the gun walking investigation next.

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HOLDER: This should never have happened and it must never happen again.

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KAYE: That is Attorney General Eric Holder testifying before a Senate committee today. He was grilled about the controversial ATF gun walking program dubbed "Operation Fast and Furious."

It was an effort to disrupt the flow of illegal weapons south of the border. But, guns traced to the program turned up at the murder scene of a federal agent.

Joining me now from Washington, our Brian Todd. Brian, break down for us if you can what came out of the hearing today?

BRIAN TODD, CNN CORRESPONDENT: Randi, again, Eric Holder pressed very hard by Republican senators on what he knew about this program and when he knew it. Holder expressed regret over a letter that the Justice Department sent to Republican Senator Chuck Grassley on February 4th.

That letter said that the ATF makes every effort to interdict weapons purchased illegally and prevent their transportation to Mexico. In fact, at that time, weapons were being allowed to be purchased illegally and walk into Mexico as they say.

Republicans senators were implying this morning as they have been that Holder and his team may have been misleading Congress at the time. Holder reiterating again today, we were not misleading you. We know that the letter was inaccurate, but we did not know that it was inaccurate at the time.

But a key exchange this morning, Randi, came between Republican Senator John Cornyn and Holder over the death of Border Patrol Officer Brian Terry.

He was murdered in December, guns from the "Fast and Furious" program as you mentioned turning up near the scene of his death. Listen to this exchange between John Cornyn and Eric Holder.

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UNIDENTIFIED MALE: Have you apologized to the family of Brian Terry?

HOLDER: I have not apologized to them, but I certainly regret what happened.

UNIDENTIFIED MALE: Did you even talked to them? HOLDER: I have not. It pains me when there is a death of a law enforcement official. It is not fair, however, to assume that the mistakes that happened in "Fast and Furious" directly led to the death of Agent Terry.

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TODD: I caught up with Senator Cornyn in the hallway shortly after that exchange. He said that answer was not acceptable to him. Senator Cornyn though says he's not going so far as right now to press Eric Holder to resign, but he may be heading in that direction -- Randi.

KAYE: Brian Todd, thank you very much.

Empty desks, aging facilities and hardly any money, how one city plans to fix this declining school system. Next in "Street Level."

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KAYE: Now to "Street Level." In Philadelphia, too few students and too little money could mean nine city schools are history. The Philadelphia School District has voted to close five elementary schools, three high schools and a middle school at a savings of anywhere from half a million dollars to a million dollars per school per year.

More changes are coming, says Philly School Superintendent Leroy Nunery who joins me now on the phone. Dr. Nunery, I understand that money is not the primary driver here of these decisions?

LEROY NUNERY, SUPT., PHILADELPHIA SCHOOL DISTRICT (via telephone): That's correct. And thanks for the opportunity to speak with you. Ultimately, large urban districts like ours have to look at the efficiency of the school buildings.

But also what the right educational program is given where we are in the 21st Century and it's well over due here in Philadelphia for this type of program. KAYE: And how did roman shrink so fast and so much?

NUNERY: Well, some of it quite frankly is due to demographic shifts, birth rates not being as high as they once were, people moving outside of the core city to the suburbs, charter schools have come on.

So we think that, again, the footprint of the school district was built out largely to reflect the time when most of those buildings constructed, average age is 63 years old.

So the -- we have to catch up here not only in terms of not only in the educational program, but what's the right level of investment for each of the buildings that we have.

KAYE: And do you foresee more for closures here or any other major steps?

NUNERY: Well, there are two major ways to go about this problem, right? You can shrink the excess capacity, but you can also make schools more compelling for young people to attend so that they don't drop out.

Career and technical education is a huge thrush for us, changing the high school programming so that more young people, particularly at that age middle school and high school will stay.

So we want to go at it in both directions, but also use technology where we can to create a hybrid environment.

KAYE: And just very quickly, of the schools that you have targeted so far, what has been the reaction?

NUNERY: Well, as you would expect, people don't like school buildings closed. Although a number of community leaders, principals and others have in fact thought it was well overdue. There are going to be a number of issues like that.

Until you can explain what the new school will look like. We want children to have all of the resources that are due so that they don't have to have a split time between instructional music teachers or nurses and all of the things that we have to face given pretty severe budget cuts.

KAYE: Dr. Nunery, appreciate that. Thank you very much and we wish you luck.

For millions of people in Georgia, today's election could be a reason to raise the glass on the ballot in about 100 cities and counties whether or not to allow stores to sell alcohol on Sundays.

This is the first time in history that Georgia voters can decide the issue for themselves. Brooke Baldwin reports.

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BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): David Greenbalm is the owner of Tower Beer, Wines and Spirits in Atlanta, Georgia. His family went into the liquor sales business back in 1938 after the repeal of prohibition.

Decades later, there could be another milestone in the state of Georgia, the lifting of the ban of Sunday alcohol sales.

UNIDENTIFIED MALE: It would be nice for people to buy whenever they want.

BALDWIN: Georgia is one of three states along with Connecticut and Indiana where the sale of all types of liquor is prohibited in stores on Sundays although people can still buy alcohol in bars and restaurants.

In April, Georgia Governor Nathan Deal signed a law that allows local jurisdictions to hold a referendum on whether to lift the ban or not and today Georgia residents are voting. If the ban is lifted, Greenbalm says he'll be ready.

UNIDENTIFIED MALE: We will definitely be opened fully staffed and probably for the first six months we will overstaff.

BALDWIN: Economist Tom Smith estimates that Sunday sales of alcohol in Georgia would bring an additional $5 million in state revenue. He says won't have a significant economic impact for the state, but it would affect smaller towns and communities.

UNIDENTIFIED MALE: There might be some municipalities who would view this additional income as a difference between, let's say, having three police cars and having four police cars.

BALDWIN: Some conservatives are against lifting the ban saying that it will encourage people to drink more and lead to more traffic accidents.

JERRY LUQUIRE, PRESIDENT, GEORGIA CHRISTIAN COALITION: It's the excessive consumption that we would like people to pay attention to and the fact that Sunday is a leisure time and this is also a time for drinking.

BALDWIN: However, many Georgia residents disagree and see the ban as an inconvenience.

UNIDENTIFIED MALE: Enjoy a nice game, but you need to store up for it. I mean, that's ridiculous.

UNIDENTIFIED FEMALE: We need to update our laws and be more reflective of our current, you know, times.

BALDWIN: In the meantime, Greenbalm is preparing for the change.

UNIDENTIFIED MALE: Once we find out what hours we will be opened on Sunday, on our front doors, we're going to scrape off closed on Sunday. And we're going to have Sunday from whatever time to whatever time. Yes, I've already contacted my sign guy to be ready.

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KAYE: And that was Brooke Baldwin reporting. Thanks so much for watching today. As always, I'd love to hear what you think. You can continue the conversation with me online on Facebook or on Twitter @randikaye@cnn.

That will do it for me and I will hand it over now to Brooke Baldwin. Hi, Brooke.

BROOKE BALDWIN, CNN ANCHOR: Randi, thank you so much.