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States And Banks Reach Mortgage Deal; Controversial Pardons Challenged; Syria Intensified Deadly Attacks; Al-Assad Escalates Attacks On His People; Santorum Raises $1 Million In 24 Hours; Conservative Base Begins Conference; $25 Billion Mortgage Settlement; Romney Sharpens Jabs At Santorum; New Staff at School Rocked by Abuse; Super Tuesday Debate

Aired February 09, 2012 - 10:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: I'll tell you what. It's a busy time in the CNN NEWSROOM right now. Mississippi Supreme Court is about to review the pardon scandal that ignited so much outrage. We've got live pictures from inside the courtroom.

You may remember the governor erased the convictions of killers and other criminals in his final hours in office. Was that controversial move legal, we're on it.

We're also waiting for a news conference millions of Americans are definitely interested in, a legal settlement that could help home owners who owe more than their house is worth, but the deal addresses a more sinister side of the mortgage crisis, homes that were wrongfully seized because the banks cut corners.

CNN's Christine Romans is live in New York. Let's start there, Christine. You were on a conference call, I understand, with the Housing and Urban Development folks, right, about this deal?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Right, and what this is, now, look, they are being very clear this doesn't settle all the problems within the housing market, right. This is just about the robo signing and servicing problems, one part of the big housing mess.

We know it's $26 billion and it breaks down in a variety of different ways. For days we've been reporting the expectation it would be cash to states, some $5 billion there, $17 billion in consumer relief, and $3 billion for borrowers so they can refinance at lower rates.

This is the largest settlement between an industry and states in the government, Kyra, since the 1998 tobacco settlement. So it is a big, big settlement, but it doesn't mean that the states won't still criminally go after some of the banks that they have to.

And the servicers if they have to and some of their investigations they already have and it doesn't mean that it has settled any of the problems in the securitization markets and the way these mortgages were packaged and sold to investors.

PHILLIPS: All right, so who's going to get money from this deal and how much, I've heard all kinds of numbers.

ROMANS: Yes, and you know, we'll know for sure when the Justice Department, you know, releases all the details, but this is what is pretty clear. Underwater home owners, there are 11 million of them, right. This is aiming to help 1 million of them.

Underwater home owners who are behind in their payments would get an average of $20,000 in principle write downs. How would a home owner know if they are eligible? Well, the bank will reach out to them and let them know that they are eligible.

OK, here's another group of people who do, underwater home owners who are current on their payments, they can refinance at lower rates, if they are current on their payments, and there's a third group.

These are folks who were in foreclosure between September 2008 and December 2011, they can be eligible for cash payments of up to $2,000. So that's where all that money would be going, but again, the devil's in the details, we're still waiting to see all of those details and hear officially from the government.

PHILLIPS: All right, we are waiting. Christine, thanks so much.

Now to our other big story, it's unfolding right now in Jackson, Mississippi. We've got live pictures here for you of the State Supreme Court tackling a case that's fuelled outrage across the country.

We're talking about the pardoning of nearly 200 criminals, four of them murderers by then-Governor Haley Barbour. Now the nine justices will decide if the pardons are legal.

The state attorney general says that the pardons are unconstitutional and calls the Barbour's move a, quote, "a slap in the face to everyone in law enforcement."

CNN's Martin Savidge is outside the courthouse there in Jackson, Mississippi. Martin, how likely is it that the justices will actually rule these pardons were illegal?

MARTIN SAVIDGE, CNN CORRESPONDENT: Well, that's the question that has everybody wondering this morning and everybody watching the State Supreme Court here. There is a lot at stake here, Kyra.

First and foremost, potentially it could impact the power of future governor and decisions when it comes to the process of clemency in the state. We also know that it could determine the freedom of at least ten convicts.

And also the criminal records of 173 other people that were pardoned as a result of Haley Barbour when he left office. So that's what on the line. By the way, I should also mention, you have the victims' families who have a very emotional stake in all of this.

And some of them are already inside the courtroom as they wait to hear the arguments. Here's the way the arguments are going to go. You have one side, the defense that is standing behind Governor Haley Barbour's decision, saying, look, the governor has the absolute power to grant clemency. No one can question it and no one can change it once he has given the pardon.

Then you have the state attorney general that says, well, we're not really talking about the pardon. We're talking about the obligation the criminals have according to the state constitution. Gets a little out of the weeds here, but they basically had to advertise for 30 days straight in a newspaper they were coming up for pardon to notify the public.

It turns up many did not meet that requirement. Some as far as 28 days, but 28 days the state attorney general says is not 30, thereby, they shouldn't be granted the pardons. They should be declared invalid -- Kyra.

PHILLIPS: OK, you mentioned the outrage. You know, a lot of people are furious with Haley Barbour accusing him of cronyism because the four murders actually worked at the governor's mansion. Is he wavering at all on his decision?

SAVIDGE: No, he has not. He has said that he has felt in his heart that every one of those men, there were five of them, four were murders, are changed men and that he actually watched them interact with his own grandchildren.

And he felt that if they were safe enough to handle his grandchildren then they were safe enough to return to the streets of Mississippi. However, the critics will point out and say, well, of course, they were on their best behavior.

Because they were in the presence of the man who would determine if they got to go free or not that was no predictor of how they would be once they left the governor's mansion.

PHILLIPS: Martin Savidge, we're following this with you. Keep us updated on what you hear.

And now to Syria. The pictures show you the devastation, the voices capture the terror. The embattled Syrian regime stepping up its brutal attacks on activists that want democracy and want President Bashar Al-Assad to fall.

His troops have reduced neighborhoods to rubble. In Homs, Syria's third largest city, more than 90 people are reported killed so far today. And because foreign reporters are mostly banned from the country, we continue to rely on home videos, like this one, posted online.

(BEGIN VIDEO CLIP)

DANNY, SYRIAN OPPOSITION ACTIVIST: This is Homs. You can see over there, another rocket landed on a civilian house. This has been going on all -- all day long since about 5:00 a.m. It's about 8:00 a.m. right now. It's going to keep going on until 7:00 p.m. This is the live we have got used to, rockets, bullets, killing children dead in the street.

(END VIDEO CLIP)

PHILLIPS: While this is all happening, the United Nations is considering a joint monitoring mission with the Arab League and today's discussion comes after a surprisingly candid and pointed statement from the U.N. security general. Take a listen.

(BEGIN VIDEO CLIP)

BAN KI-MOON, U.N. SECRETARY GENERAL: I deeply regret that the Security Council has been unable to speak with one clear voice to end the bloodshed. At the failure to do so is disastrous for the people of Syria. It has encouraged the Syrian government to step up its rule on its own people. Thousands have been killed in cold blood, shredding President Assad's claims to speak for the Syrian people.

(END VIDEO CLIP)

PHILLIPS: CNN's Ivan Watson is in Istanbul, Turkey. You know, Ivan, he talked about the possibility of another observer mission. You talk to people in Homs. What are they saying about another possible mission and how effective it can really be?

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: You know, these people are leaving under siege. Today, more than 90 people killed in Homs alone. They say we don't want more observers. They already had an Arab observer mission and the killing has gotten worse since then, Kyra.

A doctor I spoke within a makeshift clinic, who in the first hours of the morning had seen 40 bodies already and more than 100 wounded. He said he needed antibiotics. He only has basic medical supplies. He cannot operate on people coming in with amputations and other mangled wounds.

He was calling for the international community to help establish a humanitarian corridor to help evacuate the civilians from the city of about a population of 1 million people encircled and being bombarded by tanks and mortars and rockets.

PHILLIPS: Ivan, can you tell us what you know about the situation on the ground right now? You talk about the number, 90 deaths reported just today. What else do you know?

WATSON: Well, this is a siege-like situation, Kyra, so the military, according to residents, is stopping deliveries of medicine and food to these communities inside, and people cannot move around because there are snipers on roofs firing into the streets.

Among the wounded is a prominent activist who came out trying to show wounded people to the Arab observer mission previously in Syria, and he's been shown in a home video wounded, but issuing a direct note of defiance to the Syrian president, Bashar Al-Assad. Take a look what he had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (Inaudible).

(END VIDEO CLIP)

WATSON: Let me just leave you with the words of this doctor that we talked to. He said, quote, "Everybody's sitting in their homes and waiting for their turns for a rocket to hit them and for us to then find them dead under the rubble." Those are the words from Homs today -- Kyra.

PHILLIPS: Ivan Watson out of Istanbul for us. Ivan, thanks.

Well, in politics, nothing sells like success. Rick Santorum is taking that lesson right to the bank. The presidential candidate has raked in more than $1 million in donations just since his three big wins Tuesday night.

And right now he's riding his momentum in Oklahoma City. He planned to hold his rally at a gun range, but state GOP officials say they had to hold it in a larger venue because so many people wanted to attend.

So Rick Santorum will join the other GOP candidates addressing CPAC. The annual convention of conservatives is kicking off this morning in Washington.

Our political editor, Paul Steinhauser is following it for us. So let's talk -- I guess, how about some CPAC 101 for our viewers let's start there.

PAUL STEINHAUSER, CNN POLITICAL EDITOR: You got it. CPAC, what it stands for, Conservative Political Action Conference. They do this every year right here in Washington, D.C. Kyra, this is the largest annual gathering of conservative leaders, activists, supporters, this is the big one, almost like the Super Bowl, you could say, for conservatives.

Besides the three candidates -- three to four candidates are going to be speaking there. Santorum, you just saw live pictures of him in Oklahoma, of course, that's a Super Tuesday state. Also Mitt Romney is going to be speaking here as well as former House speaker, Newt Gingrich.

The only candidate that's not going to be speaking, Ron Paul, he's already up in Maine. You got those caucuses on going right now, but his son, Rand Paul, the senator from Kentucky will speak in his stead.

It's a big deal, CPAC here, it's not just the speakers here, it's also the meetings, behind closed doors meeting, kind of like a lot of power players and strategy going on.

That's why we spend so much time looking at CPAC, especially, Kyra, in a year like this where you have an unsettled Republican nomination battle. PHILLIPS: Well, the conference also is going to end with this straw poll on Saturday. Let's talk about the significance of that.

STEINHAUSER: Yes, we look at this straw poll every year. It's must-watched. Listen, four years ago, Mitt Romney, he was running for the White House at that time. He dropped his bid at CPAC. He announced he was dropping out at the time Senator John McCain was the frontrunner.

Romney was considered at that time one of the conservative alternatives, Kyra, and guess what? He won the straw poll there. That was his second of third victories. Ron Paul has now won three in a row.

So we're going to really stay tuned and see who wins and who wins could be -- it could be important because that person could be the one who has the backing of the conservative movement. We know conservatives are so influential in picking the next Republican presidential nominee -- Kyra.

PHILLIPS: Paul, thanks. Santorum speaking live in Oklahoma City, as you know. Let's go ahead and dip in.

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: That beacon of hope, freedom and opportunity for the rest of the world. It's been a magnet for people to come to this country, not just since welfare programs and Medicare and Medicaid were in place, but for centuries, two centuries.

It was a magnet, because we were something special in the world. And the president of the United States, the leader of this free world said America was not a great country until the government took your money, coerced you, told you, you were to pay this money, and then for people in power to redistribute that money to you.

In Barack Obama's eyes, that's what makes America a great country. Ladies and gentlemen, my grandfather came to this country in 1925. There was no Medicare, Medicaid, unemployment, health care, Social Security, there was just one thing.

It's the one thing that made this country the greatest country in the history of the world, and that one thing was a country that believed in God-given rights, a country that --

PHILLIPS: After his three-state sweep, Rick Santorum speaking in Oklahoma City. Why? Well, it's one of the Super Tuesday states. We're following it for you.

And in just a few minutes, we're going to talk to Erick Erickson. He's getting ready to lead a huge discussion at the CPAC. He joins me live.

And later, a controversy at the intersection of religion and politics. The White House trying to tweak a contraception policy that the church can live with and the archbishop of New York weighs in.

(COMMERCIAL BREAK)

PHILLIPS: Take you straight to Eric Holder now at the Justice Department. We're going to get the details now on this multi-billion dollar legal settlement that could help home owners that owe money on their homes.

ERIC HOLDER, ATTORNEY GENERAL: I realize that more work must be done. That's why we have taken steps to ensure that the claims we are releasing through this settlement will not interfere with our ability to move current investigations and prosecutions forward.

And to advance the work of the Financial Fraud Enforcement Task Force. So let me be very clear on this, while today's agreement resolves certain civil claims based on mortgage loan servicing activities, it does not, it does not prevent state and federal authorities from pursuing criminal enforcement actions.

And it preserves extensive claims related to mortgage securitization activities, including the claims that will be the focus of the new residential mortgage-backed securities working group. Furthermore, the agreement does not prevent claims by any individual borrowers who wish to bring their own lawsuits.

This agreement underscores a point that many of you heard we make here at the Justice Department less than two weeks ago when Secretary Donovan and I announced and convened the first meeting of the Financial Fraud Enforcement Task Force's new residential mortgage- backed group.

I noted that by focusing on collaboration and bringing our government's full enforcement resources to bear, we can improve our ability to identify and prosecute misconduct in our financial markets to recover losses, to prevent fraud, and hold those who violate the law accountable.

Today's settlement proves this and is a remarkable example of cooperative law enforcement. Multiple federal agencies, including DOJ, HUD's office of the inspector general, the Federal Housing Administration, the Federal Housing Finance Bureau, the Board of Governors of the Federal Reserve System, the Federal Trade Commission and the special inspector general for the trouble assets relief program.

All played key roles in achieving this settlement, and we partnered with state attorneys general offices and state banking regulators from across the country who brought valuable expertise and unique on the ground experience with those directly affected by the foreclosure crisis to this resolution.

In particular, I want to recognize the outstanding work of the Justice Department's United States Trustees Program and our United States attorneys' offices. The U.S. Trustees Program, which serves as the watchdog of all bankruptcy court operations was one of the first federal agencies to investigate mortgage services abuses of home owners in financial distress.

As part of their investigation, trustees reviewed more than 37,000 documents filed by major mortgage servicers in federal bankruptcy court and took discovery in more than 175 cases across the countries. These efforts were advanced by several United States attorneys, including U.S. Attorney Loretta Lynch from the (inaudible) New York, who's with us today.

During a three-year investigation, her office issued multiple subpoenas, reviewed over 2 million documents, and interviewed numerous witnesses. They have worked tirelessly to seek justice for home owners who were treated unfairly and tax payers who footed the bill.

And the information evidence that these teams compiled and the expertise that they provided was essential in reaching this historic settlement. Similar large scale reviews were also conducted by HUD, FHA, and others.

Our investigations revealed disturbing practices. For instance, we saw that far too often servicers pushed borrowers into foreclosure, even though federal regulations required servicers to try other alternatives first.

These failures didn't just hurt borrowers who might have been able to afford modified mortgages. They fuelled the downward spiral of our economy and of communities nationwide. They eroded faith in our financial system, and they punished American taxpayers who have had to foot the bill for foreclosures that could have been avoided.

With this settlement, we are recovering precious taxpayer resources, and the state attorneys general will be establishing a fund to facilitate payments to borrowers who as a result of improper lending practices lost their homes during the foreclosure crisis.

Mortgage services also will be required to dedicate substantial resources, approximately $20 billion, to provide relief and assistance to struggling home owners and neighborhoods. And the agreement includes specific provisions that will enhance protections and help ensure justice for U.S. service members and their families.

I also want to note that with this settlement, we aren't just holding servicers accountable for wrongs that they committed. We are using this opportunity to fix a broken system and lay the groundwork for a better future.

Our nation's lending mortgage services will be required to follow a new set of standards, which will be overseen by an independent monitor and will be --

PHILLIPS: Christine Romans, you've been listening also to the attorney general here. Why don't we break down this plan from what we found out? There are still a lot of questions about who exactly is going to receive how much.

ROMANS: Well, first of all, I mean, I will say that Eric Holder sounds like he's pretty angry at the servicers. He said they found a disturbing pattern of behavior from the big mortgage servicers. They pushed people into foreclosure. They hurt the economy unnecessarily.

They were violating federal regulations and they punished tax payers who had to bear the brunt of the costs of these communities who have been so slammed by so many foreclosures. This is what it looks like. It looks like there will be $20,000 write downs for home owners.

Home owners who are underwater on their loans and late in their payments, that's pretty key there, about $20,000 write down the principle for those. For people who are current in their mortgage payments, who are current, they will be able to refinance at lower interest rates.

And there's a third group that could be helped here. There are some $3 billion going to help people who are in foreclosure kicked out of their homes at that time period you see on your screen, they could get payments in the mail.

Now earlier when we were on the phone call with administration officials about this, there was some question about how are people going to know whether they qualify. I mean, that's what I really know.

Do you sign up, will there be a government web site, and they said, the administration officials said that the banks are supposed to scrub their books and find out who it is that meets all the qualifications and reach out to that home owner.

And it's supposed to happen soon, quickly once a federal judge signs off on this settlement. They want to get money out there as quickly as possible. Another key point, Kyra, there's a lot of criticism this is a slap on the wrist to the big banks, it's not enough.

I mean, there's billions and billions more that people still need to get the housing market on its feet. Look, there are 11 million people who are underwater on their loans. This is meant to help 1 million of those.

So put that in perspective. Still, it is the biggest and broadest federal housing rescue we have seen yet -- Kyra.

PHILLIPS: OK, Christine Romans, thanks so much.

In just a few minutes, we're going to talk politics. We're talking with Erick Erickson. He's getting ready to lead a huge discussion at the major conservative conference, CPAC.

(COMMERCIAL BREAK)

PHILLIPS: CNN contributor Erick Erickson's got a big day ahead. He's hosting a panel discussion today at CPAC, the Conservative Political Action Conference. A liberal number of conservatives expected there. So Erick, what are you going to talk about?

ERICK ERICKSON, CNN CONTRIBUTOR: The political landscape in 2012, not just focusing on the president. Unfortunately, so many people are focusing on the president. They forgotten there are Senate races, House races, gubernatorial races so giving a big overview of what's at stake in 2012.

PHILLIPS: All right, you wrote on your "Red State" blog that the real winner Tuesday was CPAC, and we all thought it was Santorum, please, explain.

ERICKSON: Well, it was so divided. No one expected the results Tuesday night. Everyone expected Romney to at least win in Colorado and come in second in Minnesota, he came in third.

So on Saturday at CPAC, you're going to see Rick Santorum first, then you're going to see Mitt Romney, then you're going to see Newt Gingrich, all of them on the stage, all on Saturday.

This is going to be a big day for conservatives, all these guys trying to close the deal with conservatives. It puts CPAC in the spotlight coming before Super Tuesday.

PHILLIPS: All right, you're a huge critic of Mitt Romney. You make no bones about that. What's it going to take for Romney to win over the CPAC crowd?

ERICKSON: I think he's going to have to go a little bolder. He's played his race too cautious and that's hurt him. He hasn't wanted to get out on bold entitlement reform or tax reform or any fiscal reform and cuts.

Newt Gingrich and Rick Santorum have been able to portray him as being happy managing decline. So he's going to have to be very bold when he comes out on Saturday and show some specific things.

He's going to have to be willing to go on the record, even if it means opening himself up for attacks from the Democrats in the general election.

PHILLIPS: All right, let's take a listen to what Congresswoman Michele Bachmann said about Santorum's three wins on Tuesday.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R), MINNESOTA: Well, last night was a shot across the bow, and the voters haven't made up their mind yet on who the Republican nominee should be, but really the biggest signal that was sent is Barack Obama is in big trouble.

(END VIDEO CLIP)

PHILLIPS: What do you think, Erick, is she right, is Obama in big trouble or Romney?

ERICKSON: Well, talking to some of my Democratic friends who work for the president, they were really excited on Tuesday night by the decline in turnout. They think Republicans aren't excited, being here at CPAC, I can tell you. There isn't as much excitement coming into CPAC as there was last year thinking we'd have a struggling economy, the president would be on the ropes on a host of issues. Here they are thinking we're killing each other in the primary season, so I'm not sure I'd agree with the congresswoman.

PHILLIPS: What about Ron Paul supporters, they are usually a tremendous force at CPAC, what about this year?

ERICKSON: Last year his supporters booed Dick Cheney and Donald Rumsfeld. This year, Ron Paul himself isn't speaking. I believe the son might be speaking to a degree.

But they've minimized Ron Paul's presence in the hopes of minimizing the number of Ron Paul people who are. Interestingly enough, some of the "Occupy Wall Street" crowd has showed up and decided to dress up as Ron Paul supporters.

PHILLIPS: Erick Erickson, thanks so much for talking to me today.

ERICKSON: Thank you.

PHILLIPS: We have continuing coverage of CPAC tomorrow, three Republican presidential candidates will be speaking, Rick Santorum's speech schedule to start at 10:25 Eastern. We'll bring that to you live. Then Mitt Romney, will start at 12:55. Newt Gingrich, 4:10. So watch CNN tomorrow for complete coverage of the CPAC Conference.

Check "Top Stories" now, Syrian opposition groups say that security forces have launched a fifth day of deadly attacks in the city of Homs. The opposition reports more than 100 people have been killed across Syria. The U.N. plans to take up a proposal calling for a joint monetary mission in Syria.

And the TSA plans to expand its fast lane technology to 28 additional airports from the current seven. The program lets qualified passengers go through screening more quickly if they've already provided personal information before getting to the airport.

And the founder of the Susan G. Komen for the Cure says that the organization made mistakes regarding Planned Parenthood. Nancy Brinker addressed the controversy in a letter to "The Washington Post". Komen Foundation announced that it would stop donating to Planned Parenthood then reversed its decision.

(COMMERCIAL BREAK)

PHILLIPS: "Political Buzz" is your rapid fire look at the best political topics of the day. And it's time for the three questions, 30 seconds on the clock. Playing today: Robert Zimmerman, a Democratic strategist; Patricia Murphy, founder and editor of Citizen Jane Politics; and Daily Beast contributor and CNN contributor, Will Cain.

All right, guys, first question, CPAC getting going today. Can any candidate make up some ground here, Robert?

ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: This is got to be Rick Santorum's moment and Barack Obama's moment, because as we watch the CPAC events unfold, any time Newt Gingrich gives a lecture about the sanctity of marriage and family values, that's a great day for Democrats. And if in fact, the CPAC participants follow Erick Erickson advise to go further to the right after they've declared war on contraception, advocated keeping our troops in Iraq and Afghanistan, advocated ending Medicare for future retirees, they will lose Independent voters, that helps Barack Obama.

PHILLIPS: Will?

WILL CAIN, CNN CONTRIBUTOR: It's probably going to be a place where Rick Santorum can make up ground, where he can continue his momentum that he's had going this week. I would like to say this, how can Mitt Romney, Kyra how can he begin to make up ground, because obviously, he now needs to, he can't just be assumed to be the frontrunner.

Robert and I talked earlier today about how he needs to give voters a reason to vote for himself -- vote for him. He needs to define himself. What I would say is this and this is counterintuitive now to everything in his bones, everything he has stood for. You're going to have to become who everyone thinks you are, the symbol of capitalism, the rich guy who's been successful. Be that. Define yourself as that, there are people out there who can defend that.

PHILLIPS: Patricia?

PATRICIA MURPHY, FOUNDER/EDITOR, CITIZEN JANE POLITICS: I -- well, I think that Mitt Romney can do a little good for himself at CPAC by reminding them four years ago they loved the guy. I was in the audience when he was speaking to CPAC, its actually where he withdrew from the race and there were boos when he was getting out. They loved him, they didn't want to see him go. They hated John McCain.

He needs to remind them that that's the guy that he is now, not the guy he's been made to -- maybe -- maybe portrayed by in the media or maybe it's his record that they don't like so much.

Anyway, I also think that Newt Gingrich has a huge opportunity here. He's had a terrible week, he's been on almost radio silence since Tuesday night when he went O for three. He could do a lot of good for himself by having a good moment at CPAC.

PHILLIPS: Santorum wins -- that grabbed headlines this week. But John McCain says that low voter turnout was to blame for Romney's lost. What's at the heart of this low response so far in the Republican campaign, Will?

CAIN: Well, I think we all know, why is there a low turnout? Because there's a general lack of excitement about your options, about the alternatives. I'm not going to get on here and pretend like, wow, we've got the greatest candidate, greatest platform of candidates here from which to pick, the greatest buffet of candidates. It's not. No one is real excited.

That being said, I want to be clear, they're all better than Barack Obama in the conservative mind, but we just wish there was somebody else that we had to choose from.

PHILLIPS: Robert?

ZIMMERMAN: You know, the truism to politics that negative campaigning always drives down voter turnout, so you see a part of that in place. But I think the other part of it is too, what you're seeing in the Republican Party is really a great ideological and philosophical divide where they don't trust Mitt Romney but they really have not settled on an alternative to him, and uncomfortable with the alternatives. That's a factor.

But before my Democratic friends and colleagues get too confident, we also have an enthusiasm gap in my party that we don't like to talk about, we've got to start energizing our base by confronting our own enthusiasm gap head on.

PHILLIPS: Patricia?

MURPHY: Yes, I think that obviously, the reason that nobody -- well, not as many people are showing up to these events is that, people don't like these candidates as much as they did in the past. I think also if you want to talk to people in the Tea Party, they don't like Mitt Romney, but they are not crazy about any of the other guys either.

I don't, though, think that this is going to translate to November. When I talk to conservatives, you talk to Republicans, they want to vote against Barack Obama. They are going out there, they are going to vote. Right now though, they almost don't care who the candidate is, they just want the guy who's going to win.

PHILLIPS: All right, here's your "Buzzer Beater", 20 seconds on this. A new poll saying about a third of South Carolinians couldn't identify Joe Biden. And that's not any different than a new -- a Pew poll you might remember from 2010 that said 41 percent of Americans couldn't even pick him out of a police line up.

All right, just give me some ideas guys on how Joe Biden can bump up his profile, Robert?

ZIMMERMAN: He's got to overcome his shyness. I mean, let's be realistic about it.

PHILLIPS: Or his comments that make the news all the time.

ZIMMERMAN: Let's -- let's -- let's be realistic about it, first of all, nobody votes for vice president. People vote for president. A vice president could cost you votes, that's not the case with Joe Biden. He's got a great compelling personal story, he really connects with people. I'd frankly will put him on some -- I'd put him on a number of the late night talk shows, because he's entertaining and he's very genuine. PHILLIPS: Will?

CAIN: I think Robert's right. This isn't a Joe Biden problem. Joe Biden is no shrinking flower, no one that avoids the spotlight. I mean, this guy, if there's a vice president people should know, it's probably Joe Biden. The problem isn't with him, it's with the American people. If Joe Biden needs to be more well known and he wants to be more well known, put civics books in people's hands, you got to educate them more.

PHILLIPS: Patricia?

MURPHY: I don't think Joe Biden needs to be really much more well known than he is, a little Joe Biden goes a long way for the American people. He's known where he needs to be known. The White House sends him exactly where he needs to go, sends him to Pennsylvania, sends him on -- to the kind of all White Catholic areas that they want to do better in. He's heavy in foreign policy, he doesn't need to be any better known than he is today.

PHILLIPS: Thanks, guys.

Well, class is back in session at an elementary school rocked by shocking allegations of sex abuse. A live report next.

(COMMERCIAL BREAK)

PHILLIPS: Well, a California elementary school rocked by two child abuse scandals is back in session. Students return to class today to an entirely new staff, and two teachers have been charged with sexually abusing these kids. CNN's Casey Wian is live at the school in LA.

Casey, first remind all of us, you know, the details of these cases. They are incredibly shocking.

CASEY WIAN, CNN CORRESPONDENT: Absolutely shocking, Kyra.

And yesterday sheriff's department investigators acknowledged that they discovered 200 more photos, allegedly taken by a former Miramonte teacher, Mark Berndt. He is in jail facing 23 counts of lewd conduct that were conducted allegedly up until last year when he lost his job. He is in jail, and the allegations include bondage -- and forgive me -- even feeding his own semen to students.

Now another teacher was arrested last week, Martin Springer. He's facing three conducts of lewd conduct on children. Now, the school has been closed for the last two days. School district officials making the controversial decision to replace all of the teachers and the staff.

Here's what the school district had to say and one teacher had to say about school resuming today.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: Normalcy is going to be difficult for a few days and perhaps weeks. There's no question about it. We're going to try to move as quickly as possible to get back to learning and get back to any sort of sense of routine to the school. It's been anything but routine in the last several days.

UNIDENTIFIED FEMALE: Not really, because all of the riffraff is gone, so I feel good about coming in and being a positive influence on these children here.

(END VIDEO CLIP)

WIAN: Now, some of the parents of these children are very upset, though, that the entire staff has been replaced. They believe, Kyra, it's going to be even more disruptive to their children facing new teachers in addition to all of the controversy that they've been enduring over the last few days.

So one of the teachers -- excuse me -- one of the parents we spoke with, who arrived with his two daughters this morning said he's bringing his children to school today, but he's not sure what's going to happen down the road. He's going to wait and see whether he's going to continue to have them go to school at Miramonte Elementary -- Kyra.

PHILLIPS: Casey, were these two teachers committing these sex acts or the sex abuse during school hours at the school?

WIAN: that is the allegations, Kyra, absolutely shocking allegations and why these parents have been so disturbed and why the school district took this dramatic action to get rid of the entire staff.

It was very clear that the parents, many of the parents, lost confidence in the ability to send their children to this school safely given the fact that these acts were allegedly taking place during school hours.

I want to mention what's going to happen going forward, every single classroom will have a counselor in it for the remainder of the school year, in addition to a teacher. So there will be two adults in each of these classrooms.

Also, the school district has asked a former justice of the state Supreme Court to conduct an independent investigation into how this could have happened for so long, how these teachers could have gotten away with this behavior for so long and what steps the district needs to take to make sure it doesn't happen again -- Kyra.

PHILLIPS: Just horrifying. Casey, thanks.

A rare event in Hollywood, two celebrities break up and couldn't be friendlier about the divorce. We'll tell you who's splitting and smiling next.

(COMMERCIAL BREAK) PHILLIPS: It was a pretty scary cliffhanger to "American Idol". "SHOWBIZ TONIGHT" host, A.J. Hammer live in New York. A.J., really made your heart stop.

A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": Yes, I mean this was a really scary moment on idol last night, Kyra. Let's just play it out and watch what happened.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Older, older crowd, older audience.

RANDY JACKSON, JUDGE, "AMERICAN IDOL": You're saying that we're older?

UNIDENTIFIED FEMALE: No.

UNIDENTIFIED MALE: Medic, please.

UNIDENTIFIED MALE: Oh.

UNIDENTIFIED FEMALE: Oh, my God.

(END VIDEO CLIP)

HAMMER: Wow, very scary moment there. 16-year-old Simone Black -- there she is -- just performed and (INAUDIBLE) was sitting on the dock at the bay. And she was sitting there explaining to the judges why she chose that song because she wanted to appeal to an older audience, then as you saw she toppled off the stage.

If you're wondering how Black is doing, we don't know. The show used this as a cliff hanger hoping you're going to tune in tonight to see what happens to her. But Kyra, I'm going to take a shot in the dark here. I think it's pretty safe to assume she is ok given how they are letting this play out and the fact that this was taped. This was not live. I don't think they would be that insensitive if she was truly hurt to actually use this as a cliffhanger.

PHILLIPS: I sure hope not. The word is nerves got the best of her, was it anxiety?

HAMMER: Yes. You know, I think it's just tough being up there and at that very moment, as you saw, Randy was challenging her and he's goofing around on the fact that she chose that song for an older audience.

And she was like, oh no. I think she was a little startled by that, but it's tough being up there as we've seen throughout the 11 -- n seasons of the show.

PHILLIPS: Well, it definitely makes you want to watch and find out what happened.

All right, a friendly divorce in Hollywood, are you serious? HAMMER: I hope so. I mean this could be a good trend to start here. Now Katy Perry and Russell Brand have officially signed off on a divorce settlement and it does seem to continue to be an amicable situation at this stage. In fact, so amicable, that when Perry actually signed her name on their agreement, she added a little smiley face and a little heart.

I'm actually thinking possibly she's happy that Brand, Kyra, isn't asking her for any of her money. They reportedly didn't have a pre-nup, so there is speculation that he'd be entitled to half of the money that she earned while they married. And she was having huge success at that time, it could be a reported $20 million that he's walking away from.

Or maybe, you know, she's just happy to have this behind her and ready to move on. She's going back to using her legal maiden name, which is Katherine Elizabeth Hudson. And Kyra, if she is ready to start dating again, you may have heard the reports out there, her parents want her to date Tim Tebow. Going from Russell Brand to Tim Tebow I believe would actually cause whiplash.

PHILLIPS: Doesn't everybody want their daughter to date Tim Tebow? I think that that's just, you know, standard operating procedure right now.

HAMMER: I suppose it could be a safe bet.

PHILLIPS: Yes, thanks.

All right. If you want any information breaking in the entertainment world, A.J.'s always got it every night. "SHOWBIZ TONIGHT", 11:00 Eastern right here on HLN.

CNN joining with the Republican Parties of Georgia and Ohio for a Super Tuesday debate. We're going to have a preview of that in just about seven minutes.

(COMMERCIAL BREAK)

PHILLIPS: And stories that we're working on for later today.

At 11:15 Eastern, House Speaker John Boehner and majority leader Eric Cantor hold their weekly briefing.

And then 45 minutes later in Des Moines, Iowa First Lady Michelle Obama kicks off a three-day nationwide tour celebrating the second anniversary of Let's Move, her campaign to fight childhood obesity.

And at 5:00 eastern, a career milestone for Sir Paul McCartney. The singer will get his star on Hollywood's Walk of Fame. The last one of the Beatles, by the way, to get his star.

Well, "Daily Dose", $40 million bucks is on the table to help reduce the number of pre-term births and early elective deliveries in the U.S. The Department of Health and Human Services is using the money to educate hospitals, doctors, and mothers. It's said these early delivers can cause problems for both the mother and child.

The Pentagon gets set to put military women -- officially put military women in combat. How will that impact females serving in the Armed Forces? Straight ahead in the CNN NEWSROOM, Suzanne Malveaux is going to interview a former army specialist, Susannah Johnson (ph), a former prisoner of the war in Iraq. She's got some strong feelings about this subject.

And how strong is your will power? Kids in this experiment had to fight temptation to eat a marshmallow. At noon eastern, the author of a new book on will power says you can change your life by improving your self control

(COMMERCIAL BREAK)

PHILLIPS: CNN has a new GOP presidential debate set up. Time for those Super Tuesday contests. And our political editor Paul Steinhauser has all the details for us -- Paul.

PAUL STEINHAUSER, CNN POLITICAL EDITOR: And hot off the presses. Here's what we're doing Kyra. We had an existing debate on March 1st in Atlanta, Georgia. CNN and the Republican Party at Georgia; that one was already on the books.

So what's new? Guess what, we're kind of making this debate even bigger and better, we're also including the Republican Party of Ohio. So Georgia and Ohio; Republican voters in Georgia and Ohio will be able to ask questions. It's on March 1st.

Remember, March 6th is Super Tuesday and Georgia and Ohio are two of the crucial ten states that will be voting on Super Tuesday. That's the new news, but wait, there's more, because we still also have a debate on February 22nd, CNN and the Republican Party of Arizona teaming up on that one.

And Kyra, this is going to be fascinating, because there has not been a debate since January 26th; that was our CNN debate in Jacksonville, Florida so it's been a while. We've seen how the debates have really had some fireworks -- Kyra.

PHILLIPS: You know, Suzanne and I were just here saying, you are never in a bad mood, are you? You are always excited about everything.

STEINHAUSER: This is primetime for us, primetime.

PHILLIPS: But wait, there's more.

STEINHAUSER: But wait.

PHILLIPS: The next two hours, Suzanne Malveaux. That's right.

SUZANNE MALVEAUX, CNN ANCHOR: I can't top that.

PHILLIPS: It's hard. Coming off that Paul Steinhauser energy, you really have to bump it up a notch.

MALVEAUX: Hey, we'll try to do what we can.

PHILLIPS: All right. See you tomorrow.

MALVEAUX: Thank you, Kyra.