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New Claims of Sexual Abuse against Sandusky; Perry Laughs Off Debate Gaffe; Senate Passes Veterans' Jobs Bill; Gunmen Kidnapped MLB Catcher; Penn State Students Discussing Sex Scandal; Penn State Vigil Tonight; Lawsuit: Banks Bilk Veterans; Music Used to Treat PTSD; Billy Crystal to Host Oscars; Penn State Trustees Meet

Aired November 11, 2011 - 09:00   ET

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

MARTIN SAVIDGE, CNN ANCHOR: Thank you very much, good morning to both of you.

Good morning to everyone.

Penn State, it will take the field tomorrow for the first time since the end of the Joe Paterno era. And there are new developments this morning surrounding the alleged sexual abuse scandal. The university says assistant football coach Mike McQueary won't be at tomorrow's Nebraska's game due to what it called multiple threats.

McQueary has told a grand jury that he saw Jerry Sandusky sexually assaulting a boy in the shower in 2002.

The lawyer for Sandusky, he's speaking out, saying that the former defense coordinator has already been tried in the court of public opinion. The lawyer also says that Sandusky is devastated by what happened to Paterno.

And Pennsylvania's two U.S. senators are taking back their support for the nomination of Paterno for the Presidential Medal of Freedom.

And now there's another bombshell. New allegations against Jerry Sandusky coming out of San Antonio, Texas.

CNN's Jason Carroll has that story for us. He's on the Penn State campus in State College, Pennsylvania.

Good morning.

JASON CARROLL, CNN NATIONAL CORRESPONDENT: And good morning to you.

This all coming from a man who identified -- who's identified as victim number 4 in the grand jury report. Apparently, Martin, when he was 12 years old, he says that Jerry Sandusky took him to the Alamo Bowl in Texas and sexually assaulted him.

But, let's back up a little bit before that. According to prosecutors, they say that this all began with what they call grooming. Apparently, showering the boy with gifts, such as Nike shoes, clothing and a snowboard. Then that progressed to a little bit more contact. What they called -- soap battles in the shower, close contact with a boy in the shower.

This all leading up to an allegation that Sandusky allegedly, once again, sexually assaulted the boy in a hotel room. The boy tried to resist, but Sandusky threatened to send him home if he resisted his sexual advances. Eventually, the boy was able to distance himself from Sandusky.

Also, Martin, the attorney general basically saying earlier this week that because Sandusky had such close contact with so many young boys over such a long period of time that it would not be out of the realm of possibility that more victims would end up coming forward in the progressing days or even weeks.

But having said that, after speaking to Sandusky's lawyer last night, I have to say that Sandusky says that he -- says that he is not guilty of any of these allegations and he is looking forward to defending himself -- Martin.

SAVIDGE: CNN's Jason Carroll on the campus of Penn State, thanks very much.

The mother of one of the alleged sex abuse victims says she wants justice. The woman, who did not want to be identified, told ABC's "Good Morning America" how she learned about the allegations against Jerry Sandusky.

(BEGIN VIDEO CLIP)

GEORGE STEPHANOPOULOS, ABC NEWS: And at some point he came to you and he said he wanted some information about how to look up sex weirdos?

UNIDENTIFIED FEMALE: Yes.

STEPHANOPOULOS: What did you think of that?

UNIDENTIFIED FEMALE: I asked him who he was looking up and he said he wanted to see if Jerry was on there. And I said, well, why would you look him up? And he said, I don't know, he's a weirdo.

(END VIDEO CLIP)

SAVIDGE: And as Jason reported, an attorney for Jerry Sandusky says that his client disputes the allegations made against him.

The Penn State study body president has been appealing for calm ever since Wednesday night's rally, which turned into a riot.

Coming up, we'll talk to T.J. Bard about tonight's plan to unify students.

Rick Perry wants you to laugh with him, not just at him. One day after his disastrous memory lapse in the presidential debate, Perry poked fun at himself on the late show with David Letterman.

Our deputy political director Paul Steinhauser is in Washington.

And, Paul, pretty brave strategy, but I guess it's better to laugh than to perhaps cry over all of this.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Martin, yes, I guess humor or laughter is the best medicine sometimes. You know Rick Perry started his redemption tour or his -- I guess you could call it his damage control tour yesterday morning during all the morning shows, including our own "AMERICAN MORNING."

He ended it on "David Letterman." Take a listen.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R), PRESIDENTIAL CANDIDATE: Hey, listen, you try concentrating with Mitt Romney smiling at you. That is one handsome dude. Yes, I had a five-hour energy drink six hours before the debate. I wanted to help take the heat off my buddy Herman Cain.

DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": And the number one Rick Perry excuse --

PERRY: I just learned Justin Bieber is my father.

(END VIDEO CLIP)

STEINHAUSER: Not bad, not bad at all, I guess, for Rick Perry, for the Texas governor.

You know, listen, he couldn't remember the Energy Department in that 54-second gap on Wednesday night at that debate in Michigan. But one thing he did remember, maybe a little bit more important. Take a listen to his wife, Anita Perry.

(BEGIN VIDEO CLIP)

ANITA PERRY, GOV. RICK PERRY'S WIFE: Everybody forgets something every now and then, but he remembered our anniversary last week.

(END VIDEO CLIP)

STEINHAUSER: Not bad. You've got to remember your anniversary when you're a married man. I know that from personal experience.

Now Rick Perry back on the debate stage tomorrow night. He gets another chance. This is a showdown in South Carolina over national security and foreign policy -- Martin.

SAVIDGE: Yes, on the personal scale, I think it's probably better to remember the anniversary. Yes. On the home front.

STEINHAUSER: Yes. Yes.

SAVIDGE: But meanwhile, Herman Cain, he spent, you know, the last two weeks denying the sexual harassment claims, but the scandal hasn't really seemed his fundraising, has it?

STEINHAUSER: As if nothing else this scandal, this controversy has been very lucrative for the Republican presidential candidate. His campaign saying yesterday they raised $9 million since October 1st. That's a lot of -- that's a lot of change. And a quarter of that has come just in the last week and a half since this controversy first struck.

So, what's Herman Cain doing today, Martin? Raising more money. Couple of fundraisers in New York City -- Martin.

SAVIDGE: All right, Paul. Thanks very much. We'll have your next political update in one hour.

And a reminder, for all the latest political news, go to our Web site, that's CNNPolitics.com.

It is Veterans Day in the United States and Washington is mustering new help for the men and women who have served in the military. It's a newly passed measure in the Senate that promises to put more unemployed veterans back to work.

Alison Kosik joins us now to explain.

And Alison, how does this jobs bill work?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Martin.

So, yes, to get veterans back into the workforce what this bill looks to do is actually give companies an incentive to hire those veterans to basically give those employers tax credit. So what it looks to do is give a $5600 credit for hiring a veteran who's been unemployed for more than six months.

It also gives a $9600 credit for hiring a disabled vet who's been unemployed for more than six months. Now this bill also does some other things. It looks to expand existing jobs retraining programs for veterans so they get those skills that they need to get into the workforce.

Now as to where this bill stands right now, the Senate passed it yesterday, the House, Martin, is expected to vote next week.

SAVIDGE: And, Alison, I've heard that the reason this is needed is that veterans tend to have higher unemployment rates, right?

KOSIK: Exactly. I mean, hundreds of thousands of veterans are out of work. The unemployment rate for veterans who left the military after 2001 is 12.1 percent. That's more than the national unemployment rate sitting at 9 percent.

Now here's the interesting thing. Many veterans actually learn highly technical skills while they're in the military and not just combat training. I'm talking about computer programming, engineering, logistics and medical training. But the thing is, it can be hard to get back into civilian life. So this bill looks to try to make it a little easier by giving these employers some financial incentives to go out there and hire them -- Martin.

SAVIDGE: Good news. All right. We'll check back with you for the opening bell. Thanks, Alison.

Still ahead, U.S. troops, they serve in some of the most dangerous places on earth. Turns out they may be targets here at home, as well. A new lawsuit may give you a whole new reason to get mad at the banks.

And a Major League Baseball player has been kidnapped from his family's home in Venezuela. Washington National catcher Wilson Ramos ambushed by four gunmen. Max Foster will join us with more on that.

I'm sorry, Max, it's time now for this. Tell us about the kidnapping. I've followed this story. What's interesting is that this is the first time we've seen an actual sports person taken as opposed to family.

MAX FOSTER, CNN INTERNATIONAL ANCHOR: Yes, well, you've got to realize is that it's a massive sport in Venezuela where much of that region football is a big sport. But this is a big sport there. They're big targets when they go there. He's from central Venezuela and, well, when Wilson actually got on his doorstep on Wednesday night, this SUV drove up and armed gunman simply took him away. That's all the information we have, it's from his agent.

The police did find the car abandoned in a nearby town and the justice minister has said they've got their best investigators on this case, but they haven't heard anything, Martin, from the abductors. The family hasn't been contacted so we don't know what they want or where he is.

SAVIDGE: Now authorities seem to -- despite the lack of contact -- believe that he is still alive. Do we have any idea why they're so certain?

FOSTER: All we know is that kidnappings are on the rise in Venezuela and big sports stars are an obvious target. And he was on his doorstep, he didn't have any protection. That's all we know. So presumably they want some money out of him. But the abductors need to come to the authorities or the family to ask for that and they haven't done that.

So everyone is really worried about this and going to the top level of government and they're doing what they can.

SAVIDGE: All right, Max. We'll continue to stay in touch to that story through you. Thank you.

Penn State students, they come together after being rocked by the alleged sex abuse scandal. Just ahead, we'll talk with the student body president about an event to bring closure. And Prince William and Kate glam it up for good. Sorry -- that's not a phrase I'm used to. Raising money for military veterans. We'll go back to London for more on that.

(COMMERCIAL BREAK)

SAVIDGE: All right. Let's get a check now of stories "Cross Country."

Near Tacoma, Washington, the military court found Army Staff Sgt. Calvin Gibbs guilty of killing three Afghan civilians. He was given life in prison. Gibbs, the highest ranking of five soldiers charged, tried to make the victims appear as Taliban fighters who died in combat.

In Tigard, Oregon, the officer behind the wheel of this police crew who crashed into a man's home has been cleared. Instead, the driver of the other car involved will be cited for not yielding to an emergency vehicle.

And here's some -- cool time lapse video of the flight deck of the USS Carl Vinson which I've actually stood on getting prepared for tonight's college basketball game. The number ranked North Carolina Tarheels take on Michigan State. Tipoff set for 7:00 p.m. Eastern. I think it's the first they've done that.

Penn state students, they are talking about the alleged sex abuse scandal and not just how it has affected the football program. We want to keep the focus on the alleged victims, the boys. Student body president T.J. Bard joins us now again from the campus this morning.

And, T.J., when you were on with us yesterday, you talked about the importance of remembering the children, of course, in this case. You and other student leaders spoke with students yesterday and I'm wondering how they went.

T.J. BARD, UNDERGRADUATE STUDENT BODY PRESIDENT: Yes, we chose to actually address the students for the first time. We felt like, in all of this, the students haven't been directly addressed by administration, by anyone.

So we actually held an event on the steps of old main (ph) myself and a lot of the student leaders from major organizations on campus and truly we're able to address the students for a change, and it was really, really to kind of remind them of the honors and the traditions of Penn State.

SAVIDGE: The rioting of Wednesday night, of course, shocked many people nationally and I'm wondering what are the students saying about that now.

BARD: I think the students -- it was definitely a frustrating time for me, personally. But the students were really, really emotionally charged. We didn't have a lot of guidance. And I think they were emotionally kind of wrapped up in feeling for the victims, frustrating -- they were frustrated that this even happened and, obviously, their emotions are on Joe Paterno, and with a lot of -- without a guidance, I think the students just didn't really know how to react.

And it was unfortunate. It was uncalled for. And I think students are really, really realizing that was not an appropriate way to react.

SAVIDGE: Yes, I mean you think that there is a lot of remorse from students now who may have participated?

BARD: Absolutely. I think they realized that they really detracted the attention from the victims and their families and that's been really the goal of the student body and my feelings on the past couple of days.

I know, today, we're having a candlelight vigil at 9:30 tonight to honor the victims. There's been a lot of organizations and grassroots movements from the alumni.

There's a Web site proudtobeapennstater.com that's raising money for child abuse. And in just the past day, they've raised over $50,000.

So, it's phenomenal what this community can do and it's important that we turn the attention back to the victims and their families.

SAVIDGE: All right. T.J., thank you very much for joining us this morning from the campus of Penn State, the head of the student body there. T.J. Bard, thank you.

Coming up: shock, anger and allegations of fraud.

(BEGIN VIDEO CLIP)

JIM BUTLER: It's incomprehensible to me that the banks would do this to veterans.

(END VIDEO CLIP)

SAVIDGE: A lawsuit accuses banks of preying on the men and women who serve in uniform. Why, you ask? Because they can. We'll talk to the whistleblower, straight ahead.

And she wore her poppy to honor veterans, but it's Kate's dress people are talking about, what it might be hiding. Palace pregnancy rumors -- they're up next, as well.

(COMMERCIAL BREAK)

SAVIDGE: As Prince William and his wife honor those cause -- actually, it's very close to their hearts, veterans, there was a lot of focus that was actually -- well, some place else: Kate's stomach. Those palace pregnancy rumors, those pesky rumors, they just won't quit.

Max Foster joins us to talk about all the chitchat and the charity dinner that the couple hosted.

Max, were you there, by the way?

MAX FOSTER, CNN CORRESPONDENT: I wasn't. I should have been, but I couldn't get there. I was on air.

Yes, all this talk about a pregnancy, I mean, what can I say, it's rumor. Hasn't been denied, but, as you can see from the pictures, she's not looking particularly pregnant. If she is, it's very early days.

All goes back to an event last week when she refused some peanut paste when everyone else in the room took some. And, you know, it can be unhealthy for pregnant mothers. But there's entire speculation.

Actually, a lot of talk today, Martin, about her dress, a Grecian style, I'm told, by Jenny Packham has made for her and everyone is talking about that.

But this was an event to raise money for a war memorial, the duke made some comments about that and how we should honor the war dead -- obviously, very important subject today.

And he's setting off, Martin, as well, to the Falklands next year. That's been confirmed now. He's going to be there for six weeks as a search and rescue pilot, a rather desolate island in the Falklands. And (INAUDIBLE) since a time, 30 years since the Falklands war and the Argentineans has something to say about that.

A busy day for him yesterday.

SAVIDGE: Maybe it's just time insensitive, but I don't see anything indicating pregnancy there.

FOSTER: No, and Ali Velshi does point out that he looks more pregnant than she does. So, maybe the story's there.

SAVIDGE: Maybe it is, indeed.

Thank you, Max, always, for opening your eyes.

The opening bell is set to ring in just a few minutes. But right now, the New York Stock Exchange is observing a moment of silence in honor of Veterans Day.

You're looking at the New York Stock Exchange as they observe a moment of silence in honor of these Veterans Day before a very busy day begins. We'll listen.

Alison Kosik joins us now.

And we understand members of the military will ring the opening bell, right, Alison?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Exactly, Martin. Those opening bell honors are going to be going to the U.S. Marine Corps, the Major General Melvin Spiese. Also, members of each branch of the U.S. Armed Forces are going to be ringing the opening bell, as well. So, each branch of the U.S. Armed Forces will be represented.

You know, what's interesting about the New York Stock Exchange, a lot of the traders here on the floor, they're a patriotic bunch. You know, any time anyone from uniform steps on the floor, they inevitably get a round of applause. Today is no exception.

Later today, at around 11:00, there'll be another moment of silence, Martin. But trading will not stop -- Martin.

SAVIDGE: All right. Alison, thank you very much -- as we hear the national anthem.

As we mentioned earlier this hour, today is, of course, Veterans Day and that makes the next story all the more outrageous. Two whistleblowers say some of the nation's biggest banks are specifically targeting men and women who served in uniform and ripping them off.

(BEGIN VIDEOTAPE)

SAVIDGE (voice-over): Brian Donnelly spent three years in the Army. So he was shocked by what he saw -- not on the battlefield but a bank loan document.

BRIAN DONNELLY, WHISTLEBLOWER: At that point, the light went off and it was just, you know, really apparent.

SAVIDGE: Donnelly, a mortgage broker says it was clear the bank was deliberately ripping off a veteran who was trying to refinance his home.

DONNELLY: Where the veteran didn't see it, the V.A didn't see it -- I mean, it was really slick how they did it.

SAVIDGE: Donnelly and fellow mortgage broker, Victor Bibby, began going through other veteran loan paperwork.

VICTOR BIBBY, WHISTLEBLOWER: Every one of the lenders were doing the exact same thing.

SAVIDGE: According to the two men, this loan document shows how the alleged fraud was done. Under Veterans Affairs rules, the banks are to pay attorney fees for all refinanced loans. That's why the line for attorney fees on this document is blank. But the V.A. does allow banks to charge veterans other fees like for title examination -- which according to Bibby and Donnelly normally should cost between $125 to $200.

This form shows the cost charged to the veteran was a whopping $950.

DONNELLY: They were taking that fee that they should have paid and they put it into an allowable fee.

SAVIDGE (on camera): How many loans are we talking about here?

MARLIN WILBANKS, ATTORNEY: We know that there have been over 1 million, I think approximately 1.2 million of these particular refinancing loans that are called IRRL loans over the last decade.

SAVIDGE (voice-over): And Attorney Marlin Wilbanks says up to 90 percent of them may have had fraudulent fees.

(on camera): Were you surprised by how brazen it appears this alleged fraud was?

JIM BUTLER, ATTORNEY: Yes. Stunned is a better word. It's incomprehensible to me that the banks would do this to veterans.

SAVIDGE (voice-over): Bibby and Donnelly turned whistleblowers, they filed suit in federal court, charging that veterans and taxpayers have been defrauded by some of the nation's biggest banks and mortgage companies.

(on camera): You might think with so many veterans potentially victimized that the U.S. Justice Department would join the case. That didn't happen. Instead, they're taking a wait and see approach.

(voice-over): Almost all the dozen or so banks named in the suit declined comment, except Citi Mortgage, which in the email called the allegations without merit.

On the background, banks suggested that if the feds aren't in on it, then the case can't be that strong, to which an attorney for the whistleblowers had a simple reply.

BUTLER: We will see them in court.

(END VIDEOTAPE)

SAVIDGE: But it may be a while before those two sides actually do face off in court. In fact, the attorneys say it could be a number of years before it actually gets into a courtroom.

Meanwhile, coming up as Penn State comes to grips with its disturbing alleged abuse scandal, the state is pressing ahead with its case. We'll talk to a former prosecutor B.J. Bernstein about what comes next.

And then later, Ashton Kutcher sent a -- well, a tweet about coach Joe Paterno that caused such an uproar he shut down his Twitter account. We'll have all the details in "Showbiz."

(COMMERCIAL BREAK)

SAVIDGE: Checking top stories right now:

Just minutes ago, Greece swore in a new prime minister. He is an economist who will try -- underline try there -- to lead the nation out of its debt crisis.

In Turkey, rescuers have pulled at least 30 people from the rubble of Wednesday's earthquake. That death toll stands at 19. It is, unfortunately, expected to grow.

And then in California, the "Occupy Oakland" movement holds a candlelight vigil for a man fatally shot nearby. Police say the shooting was unrelated to the protest. But he city's mayor says the threat of similar violence means the encampment has to come to an end.

No end, though, to the state's -- Penn State's alleged sex abuse case. It continues to widen. School officials are now taking steps to protect themselves. NBC News is reporting that ousted football coach Joe Paterno just reached out to a prominent defense attorney.

Joining us now to talk about the case and what might come next, trial attorney and former prosecutor B.J. Bernstein.

B.J., nice to see you, but not under these circumstances.

B.J. BERNSTEIN, TRIAL ATTORNEY/FMR. PROSECUTOR: No, very serious allegations and a lot more coming.

SAVIDGE: Well, let's talk about that. What happens next in the investigation?

BERNSTEIN: Well, we have this indictment, which is incredibly detailed. If anyone has not take on the time, you do need to read this indictment because it explains why this is just not like any other story that explodes overnight.

SAVIDGE: But it's not for the weak of heart.

BERNSTEIN: It is not for the weak of heart. But it is something that, again, when we're going to deal and try to fight child abuse, we do have to talk about these realities. And this indictment does that. But this indictment is just the beginning of the charges.

As you've heard, there's going to be, you know a criminal case moving forward and looking at the indictment, it's clear that this assistant coach, McQueary, who had witnessed things and went to Paterno was a critical witness before this grand jury and is going to be a critical witness in this case, not only against Sandusky but the two, Schultz and Curley, who worked at Penn State, who received the reports and are going to be critical to show that they failed to report as required by law and a critical witness on lying to the grand jury.

SAVIDGE: But there's been a lot of criticism of him and I'm wondering, do you think there should be charges brought or is he going to become a star witness in this case?

BERNSTEIN: I think he's a star witness in this case. And again, right now, we're all in shock. And before we, you know, no one has been convicted and we do have to hold back a little bit and say, look at the context of all this.

Look at -- he was 24 years old approximately when this happened, when he saw this. Look at the culture that was there that allowed this to happen. He goes to Paterno. Paterno goes to apparently these other two officials, one of which was the police officer in charge. And they do nothing.

And this is not the first time Penn State had heard about it. Remember, this dates back to 1998 when the district attorney was involved and still ignored it.

So, with that culture, I think we have to be careful not to burn him immediately and understand that right now this attorney general needs witnesses who can convict. It's not enough just to tear down the problems but to actually convict those who need to be convicted.

SAVIDGE: Sure, what about coach Paterno? We understand -- we just reported he's hired a criminal defense attorney. Do you charge him?

BERNSTEIN: You know, again, he definitely should talk to a lawyer because reading this indictment, you see that he actually could play a pivotal role. This is -- this is truth time for him.

Does he tell a real jury and testify against the others and tells everything he knows? I know that anecdotally, the folks -- I've even heard from friends who live in Pennsylvania that there have been rumors broader than just this tight, few people who have been charged that you don't go near Sandusky, that there were problems with him.

In today's paper in that local area, there's information about the adoption of a son by Sandusky, and that he was a foster parent, and that the official with the foster commission there had recommended that the young man be taken out of the home because he had tried to commit suicide. And that young man and his natural mother also testified before this grand jury.

So, that's why, I mean, there's going to be more there and we have to reserve judgment that way and let this attorney general who's doing their job, finally, to see where it falls.

SAVIDGE: B.J. Bernstein, thank you for walking us through it. We'll stay in touch.

BERNSTEIN: OK.

SAVIDGE: Next hour, we will talk about the case with Pennsylvania sports radio host Mike Missanelli. But he'll join us at 10:10 Eastern Time.

The new Starbucks is looking to do for juice what it's done for coffee. Make it an experience. The coffee giant is jumping into the juice business. We'll go to the New York Stock Exchange for details on that.

(COMMERCIAL BREAK)

SAVIDGE: I want to give you a quick look now at stories making news this Veterans Day.

At 11:00 a.m. Eastern, President Obama set to speak at Arlington National Cemetery.

Veterans Day ceremonies at New York's Intrepid Sea, Air, and Space Museum, it will get underway at 3:00 Eastern Time.

And a little after 7:00 p.m. Eastern the first ever carrier classic tips off. The Michigan State Spartans face number one ranked North Carolina Tar Heels, that taking place on the flight deck of the USS Carl Vinson. I want to be there.

(MUSIC)

SAVIDGE: Sometimes, you can find solutions in the most unlikely places. When searching for ways to treat veterans suffering from post-traumatic stress disorder, someone thought of music. And, guess what, it works.

This morning, a group called Guitars for Vets puts our vets in focus.

(BEGIN VIDEOTAPE)

MIKE COLLAWN, INSTRUCTOR, GUITARS FOR VETS: I have been playing guitar since I was in the seventh grade.

I just love doing it to freedom when I play guitar.

I could take every emotion I had, whether I was mad or glad or whatever, and I could put it out in a song.

My name is Mike Collawn. I'm one of the instructors with Guitars for Vets.

CHARLES MULLENIX, U.S. ARMY VETERAN: I was in the Army stationed at Fort Leonard Wood, Missouri.

VICKI BAYTON, U.S. ARMY VETERAN: I went to the First Gulf War in '91 and the second one in '03.

MATTHEW MOSLEY, U.S. ARMY VETERAN: USS San Jacinto out of Norfolk -- home based out of Norfolk, Virginia.

COLLAWN: It's more informal. I'm not a strict teacher. I'm not cracking rules on people. It's just -- we kind of hang out and we talk.

BAYTON: When I feel like I'm going to slip away and get depressed and fall into that, like, I don't feel like doing anything any more, I just -- I look across the room. I pick up the guitar. I pull out some of the sheet music and the tabs and I start playing and I just get lost in it.

MULLENIX: It soothes me. I mean, it makes me feel comfortable. I'm away from everybody.

COLLAWN: One of my guys told me, he goes, "I don't get out of bed because I'm depressed." Now he's playing guitars, it's like, I have an excuse to get up now because I can go play my guitar and gives me something to do in my idle time.

MOSLEY: I just can't stop. Once you pick it up, it's hard to put it down. I really enjoy it.

BAYTON: I like rock.

MULLENIX: Country. Blue grass.

PEG ANDRAE, CHAPTER COORDINATOR, RICHMOND GUITARS FOR VETS: You know, it's more than just guitar lessons and that's the vehicle. It's about human interaction. It's about trust. Goal setting. Accomplishment.

MULLENIX: It's not that easy as it looks.

MOSLEY: Getting your fingers in the right --

BAYTON: Position.

MULLENIX: Stretching your fingers --

BAYTON: For the chords.

MOSLEY: That's the hardest part for me.

COLLAWN: Once they've completed the course, Washburn has donated guitars and they've got guitar cases and tuners that are donated to them.

BAYTON: It's fun. I'm learning something new and, you know, we should all be students in some shape, form or fashion.

MOSLEY: Guitars for Vets, this is just another stepping stone for me -- something to better myself and hopefully carry back to my community.

COLLAWN: It's just a great feeling to know that you're doing something, to give back to people that have done so much for us and give so much to us, and no one can take the music away from them. They'll always have that.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

SAVIDGE: Just want to give you a reminder: the Penn State board of trustees will meet in a few minutes. And when that meeting gets under way, we hope to bring it to you live. So, stay tuned for that.

Checking stories across country right now:

In Atlanta, big concerns that two members of the local "Occupy" movement may have contracted a drug resistant strain of tuberculosis. The group's leader was quoted in a newspaper saying the two cases involve residents of a homeless shelter where demonstrators have taken refuge since their eviction from a city park.

The National Park Service has begun weatherizing the Washington Monument. Park officials say it is critical to, temporarily that is, fill in the cracks created from, remember the earthquake in August? They add that the quick fix won't hinder the monument's eventual restoration.

And then check out what arrived in Madison, Wisconsin, yesterday -- two alligators flown in from Pennsylvania for veterinary treatment. The gators belong to a man's private zoo that was recently burglarized. Both gators were hurt during the break-in and one suffered a broken leg. No word what happened to the burglar.

Time for your "Showbiz headlines".

The Oscars have found an old pro to replace Eddie Murphy as host.

"Showbiz Tonight's" A.J. Hammer is here.

So, A.J., who's got the job?

A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": Well, Billy Crystal's coming back, Martin, after Eddie Murphy exited his hosting gig for the 84th Academy Awards on Wednesday. The Academy of Motion Picture Arts and Science really had to make some quick work of finding a replacement and they did. They went with a familiar face.

It's going to be Crystal's ninth time hosting the award show, that doesn't including when he did it back in 2006. He opened the show back then. He broke the news on his Twitter account in fine Billy Crystal fashion. Let me read to you what he tweeted. "I'm doing the Oscars so the young woman in the pharmacy will stop asking my name when I pick up my prescriptions. I'm looking forward to the show."

And to take nothing away from Billy Crystal, I have to believe that the folks at the academy are at least a bit disappointed with how everything went down because they were really looking to shake things up this year, putting first timers Brett Ratner in the producer's chair and Eddie Murphy on the hosting stage.

However, Martin, for my money, you still can't go wrong with Billy Crystal.

SAVIDGE: No, I'm absolutely in agreement with you on that.

Let me ask you this, this morning Ashton Kutcher learned something I guess we've known for decades that it is good to have an editor. Tell us about this Twitter controversy.

HAMMER: You know, Ashton Kutcher is learning something about Twitter that we have known as far as it pertains to celebrities. It can be your best friend and it could be your worst enemy.

He sent a tweet defending Joe Paterno without knowing the whole story. And there was a resulting firestorm which has him now changing the way he manages his Twitter account.

He actually tweeted, "How do you fire Joe Paterno?", hash tag/no class. Well considering the situation that Paterno was in that tweet obviously ignited this huge firestorm and Kutcher has since apologized. In fact, he posted a picture of himself with a sign saying, "I am with stupid". And he now says as a result he's turning over his Twitter account to his professional media advisors, which is probably a smart thing.

Kutcher, of course, was one of the first celebrities to really endorse Twitter. He got more than eight million followers. So this is a huge comeuppance for Ashton. I'm a bit surprised that he didn't know more about the story. But he claims he just thought that Paterno got fired and didn't know the whole back story there.

I can't imagine anybody doesn't know the whole back story here by now. But we're going to be hearing from Ashton in a very different way -- Martin.

SAVIDGE: Yes well clearly A.J. he needs more CNN. We'll bring it to him. Thanks very much, A.J. You'll be back with us by the way next hour with more "Showbiz Headlines".

Howard Stern could be moving to network television. A.J. will tell you where he might be headed next hour.

And we also want to remind you that we are continuing to, well, take a look inside here. The Penn State board of trustees will be meeting in just a few minutes, we understand. We'll be allowed to listen in. We'll be bringing that to you live when it happens.

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SAVIDGE: That meeting by the Penn State board of trustees is under way and we will listen in now.

RODNEY ERICKSON, INTERIM PRESIDENT, PENN STATE UNIVERSITY: Good morning, everyone.

And thank you, Chairman Garban. I'm humbled and I'm honored by your appointment of me as President of Penn State University. I want to thank you for placing your confidence in me and the other members of Penn State's administrative team as we move forward. We are indeed a team, one that pulls together, day in and day out.

I'd like to take the opportunity to introduce my wife, Sherry, who is a wonderfully loyal Penn Stater, despite being a university of Iowa Hawkeye.

I'd also like to introduce my son, Jeff, who is here today, who is a Penn State graduate.

As many of you know, I've been with Penn State for more than 34 years now, and I am deeply committed to this institution: first and foremost, to our students; and to those who make it happen every day, our faculty and staff; and to those who have great pride and a sense of family in Penn State, our alumni and friends.

SAVIDGE: So this is the Penn State board of trustees meeting and a new president has clearly been named and that's who you're listening to now. I apologize, I don't have his name off hand. That was before we came to air.

Mary Snow is standing by. She's been following events. Mary what do we know of this?

MARY SNOW, CNN CORRESPONDENT: Well Martin, we know that this meeting is expected to last several hours and we have heard earlier this week that what's expected to happen today is the announcement of a special committee.

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SAVIDGE: Mary -- I'm going to interrupt you, Mary. I'm sorry. The allegations are being spoken of now. Let's listen.

ERICKSON: -- to come to grips with the full magnitude of all the damage that has been done. I want to thank the board of trustees for your leadership and guidance through this difficult time. Your deliberations and decisive actions have now set a course for the university's future.

Later today, we will vote on a proposal to form a special committee, to undertake a full and complete investigation of the circumstances that gave rise to the grand jury report. Healing cannot occur until we understand how our responsibilities to these children failed and how we can prevent such tragedies in the future.

I am grateful for the board's commitment to Penn State's mission and your stewardship of the university. Each of you shares my personal resolve to reenergize our commitment to be the best that we can be -- individually and collectively -- to strive for excellence in everything that we do and to represent the highest standards for honesty and integrity.

It is beholden on everyone now to carry on the work that so many of us have dedicated our lives to doing. We have 96,000 students, 46,000 full and part-time employees, and more than 500,000 alumni. We are a learning community, and we must continue to deliver outstanding teaching, research, and service. Our work is as important to society's future today as it was last week, perhaps even more so.

This board helped to craft the strategic plan that continues to provide the road map for setting priorities and pursuing strategies to achieve our objectives. We are certainly not adrift or without a vision going forward. In the days and weeks ahead, I will be meeting with representatives from the faculty senate, student leadership, staff, alumni groups, donors, and friends, as well as officials from state government.

My purpose will be to listen. I want to hear their concerns and their ideas for Penn State. My purpose will be to reassure. I want Penn Staters to understand that the actions of any individual do not represent our university. I want to help rebuild our confidence in who we are. My purpose will be to reaffirm. I want all Penn Staters to know that our future is still bright. And my purpose will be to talk about our core values.

Our values will define this university long after we're gone. For more than 150 years Penn State has been committed to its core values of honesty, integrity, excellence, and community. Now more than ever we need to articulate these values in everything we do, and we need to live them in our work, our service, our extracurricular activities, and our place in the community.

I know we can do this. We are resilient. We are a university that will rebuild a trust and confidence that so many people have had in us for so many years.

I have not accepted this appointment as your president to be a caretaker. During my time in service I will commit to seeing us move forward and that Penn State continues to deserve a reputation as one of the finest educational institutions in the world. Again, thank you for your trust and confidence in me.

SAVIDGE: Rodney Erickson the interim president just taking the podium there.

Let's bring in Mary Snow. Mary, I apologize. I interrupted you as you were starting to talk about this. Tell us again.

SNOW: Well, Martin, what we do know is what Rodney Erickson had just mentioned in his opening remarks, is that a special committee is being formed to look into the university's response to the sexual abuse allegations, to find out who knew what when. And, of course, after the swirling controversy about the failure to take any action, any more action beyond going to others within the university after the sexual abuse allegations first came to light.

We do know that this meeting is expected to last several hours today. We were told early on that it's not anticipated that questions will be taken from the public, but we're also told that there may be an exception to today's meeting. So that is what we know so far about this board of trustees meeting.

Of course, the first one after Wednesday night's meeting when, of course, Graham Spanier the president of Penn State and Joe Paterno were both ousted.

SAVIDGE: Mary, let me ask you real quick, do we know who is going to be on this committee? And also this committee is separate from the legal investigation that is under way, right?

SNOW: I believe yes and I don't have the answer in terms of who is going to be on this committee.

SAVIDGE: Ok. All right, Mary Snow, thank you very much.

We'll have much more on the Penn State next hour and what is going on there. Also next hour you will meet the founder of a program that is taking homeless veterans off the streets and putting them in new, permanent housing. Gulf War vet Leonard Adams will join us live, next hour

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