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Polls: Economy Remains Issue Number One; Chief Investment Officer Out At JPMorgan; Yahoo! Seeks New Boss; General To Troops: No Alcohol Or Hookers; Manhunt Under Way For FBI Agent; Shuttle Enterprise "Demated" From 747; Dow Dives 100+ On Europe Debt Fears; Facebook CEO Turns 28, IPO Could Be $100B; Florida A&M Trustees Talk Band's Future; North Carolina Governor: Gay Marriage Amendment "Wrong"; Issue Splits Black Pastors And Obama; NAACP Launches Voter Drive; "The Avengers" Tops $1 Billion; FAMU Trustees discuss Band's Future; Facebook to Offer 337 Million Shares
Aired May 14, 2012 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The Secret Service prostitution scandal in Colombia sparks a warning from a top commander to his troops in Chicago. No alcohol, no prostitutes.
The NAACP is launching a nationwide drive to get people to the polls and we're asking how President Obama's support for same-sex marriage is impacting the group's effort.
President Obama and the man who hopes to beat him in November seemed to be talking about everything, but the economy these days. The president is expected to speak about women's related issues when he delivers the commencement address at the all female Barnard College in New York today.
Women helped him win in 2008 and he's hoping they'll do the same this time. Mitt Romney on the other hand is trying to shore up support among social conservatives. He reiterated his support for traditional marriage while speaking to graduates at Liberty University, a hot bed of conservative study.
"Newsweek" also bringing the debate over same sex marriage front and center with this new cover. It features President Obama with a rainbow halo over his head and calls him the first gay president.
Joining me now is Larry Sabato. He is the director of the Center for Politics at the University of Virginia. Hi, Larry.
LARRY SABATO, UNIVERSITY OF VIRGINIA: Hi, Carol. How are you?
COSTELLO: I know your mantra. Any day those candidates aren't talking about the economy is a wasted day. So are they wasting lots of days these days?
SABATO: Well, they are wasting days. They are getting off the interstate highway and traveling on a lot of subsidiary roads, at least some of them are paved. I think gay marriage is paved. It's a legitimate controversy.
Some of them are dirt roads that have nothing to do with anything. But, you know, there are a lot of days. There are six months left until the election.
Believe me, they will have to talk about the economy most of the time because the candidates really don't run the campaign, the voters do. That's always a shock to people. But they really do have the most influence on what's discussed.
COSTELLO: OK, let me run this by you. I just had a conversation with our CNN contributors, Will Cain and Elsie Granderson, they claimed voters don't want to hear stories on the economy. They don't want to hear big bold plans because they are too hard to understand.
SABATO: Well, I will certainly admit that you can have an eyes glazing over effect if you have too many numbers and too much data and a lot of the data on the economy is contradictory.
So yes, there can be that affect, but look, people know it's important. To them it's about jobs. It's about household income. It's about that age old question if you are better off today than four years ago.
There are ways to engage voters. Look, candidates have hundreds of staff members. That's what they are there for to take complex concepts and simplify it and connect with voters.
COSTELLO: So has any candidate done that yet?
SABATO: I think some attempts have been made. We're starting to see new ads released almost on a daily basis, some by the candidates and some by supporting organizations and "Super PACs."
You're going to see most of the discussion on the economy in these 30 second and 60-second sound bites. Maybe it's not wise or good, but that's the way we run campaigns in the United States.
That's how most people will get their connection to the economy and have some of their basic questions answered about what the plans the candidates are proposing really are.
COSTELLO: Larry, thank you for joining us this morning.
SABATO: Thanks, Carol.
COSTELLO: Just minutes ago, we learned of a new casualty in that staggering $2 billion loss at the nation's largest bank. JPMorgan Chase's chief investment officer is retiring in the wake of those risky investments.
Aina Drew was with the company for more than 30 years. There are reports two other top executives are resigning. In the meantime, CEO Jamie Dimon is under fire from a former government watchdog on the bank bailout.
Elizabeth Warren says Dimon should resign from the New York Federal Reserve Board. She says the move would shore up public trust still rattled from the 2008 financial meltdown.
One of the best known companies on the internet is looking for a new boss. Yahoo has pushed out CEO Scott Thompson less than two weeks after it was discovered Thompson padded his resume with a college degree he didn't have.
Adding to the intrigue, "The Wall Street Journal" reports that before resigning, Thompson announced he's been diagnosed with thyroid cancer.
Dan Simon is our Silicon Valley correspondent. He joins us live from San Francisco. So, did Thompson resign, was he pushed out, was he fired, what?
DAN SIMON, CNN SILICON VALLEY CORRESPONDENT: Well, I think it's clear that he was pushed out. You know, despite the fact that he has this cancer and you know, it's very sad thing, he was still intent on trying to remain at the company even while this personal crisis was unfolding in front of him with his health.
This is a situation that really arose a little more than a week ago, Carol, when it came out that on his biography said that he had a degree in accounting and computer science. He only had the degree in accounting.
This was discovered by activist shareholder named Daniel Lobe who has been upset with the way Yahoo has been running things. He brought it to the media's attention and this whole thing developed really fast.
At a certain point, the transgression itself became irrelevant. I talked to a senior executive at Yahoo! and he just said that Thompson lost confidence in his employees over this episode and he really had to go -- Carol.
COSTELLO: I don't know. It just seems a bit shocking to me that a man of that stature applying for such a job would pad his resume. Just strange.
SIMON: Well, you know, the big joke in Silicon Valley is that you have a lot of college dropouts running these companies so they don't really care about your resume unless you lie about it.
So, you know, whether or not he lied, that's really open to interpretation but we do know that he really bungled the public relations response after it.
He tried to issue an apology, but he didn't really directly apologize for the transgression and so the board really had no other choice but to make this move.
COSTELLO: Dan Simon live in San Francisco. Facebook shares are ready for sale this Friday, but they are not going to be as easy to buy as you might think. Christine Romans with an in depth look at why. That comes your way in 20 minutes. A U.S. general issues a reminder for troops supporting an upcoming NATO summit in Chicago. Do not, quote, "solicit prostitutes or engage in conduct, which is unprofessional or unbecoming as a member of the armed forces."
That message comes on the heels of the Secret Service prostitution scandal in Colombia. The Senate Homeland Security Committee is one of four congressional committees investigating the scandal.
Secret Service Director Mark Sullivan and Acting Inspector General Charles Edwards have been called to testify on that committee's public hearing.
Also this morning, a massive search under way for a missing FBI agent in Southern California. Burbank police say there's no sign of foul play, but they are worried about the safety of Steven Ibens. He specializes in national security issues for the bureau. Alina Cho was following this story. What can you tell us, Alina?
ALINA CHO, CNN CORRESPONDENT: Hi there, Carol. Good morning. You know, this has sparked the largest manhunt in this area in 20 years. What's so troubling about this story is that Special Agent Steven Ibens, the man who is missing, is said to be despondent and possibly suicidal.
Now authorities won't say why they believe that's the case, but understandably it is a very big reason why those searching for him right now are so concerned. Here's what we know at this point.
Ibens is 35 years old. He was last seen on Thursday night that's according to authorities. The very next day on Friday morning police say he left his Burbank home on foot and then simply disappeared. It is believed that he took his handgun with him.
(BEGIN VIDEO CLIP)
STEVE GOMEZ, FBI SPECIAL AGENT: There is no history of violence associated with Special Agent Ibens or any known threat to the community as the investigation has uncovered no evidence of foul play. Special Agent Ibens is known to have been distraught and investigators believe he may possibly be suicidal.
(END VIDEO CLIP)
CHO: He said to be an avid hiker and an avid runner. FBI officials say that dogs had actually tracked Ibens scent near the Vertigo mountains now that's east of Burbank, but authorities have since widened their search.
They are now looking throughout L.A. County, Carol, 100 FBI agents, 40 sheriff's deputies, dozens more law enforcement officers. But the big question remains why would this FBI agent, Steven Ibens, seemingly well liked by colleagues, a father and husband, simply vanish, why would he leave, of course, and more importantly where is he now? Those are questions that we simply cannot answer at this point.
COSTELLO: So they are not afraid he's going to hurt anyone else. They're afraid he's going hurt himself and then there's this whole issue of national security and the knowledge that he carries with him.
CHO: That's right. They are not -- authorities obviously are going to be speaking and have been speaking with his family. They are speaking to a lot of his colleagues. Here's what we can tell you about him and his work as you mentioned he works in national security.
Been with the FBI for about three years, works on counterterrorism cases, said to be a valuable member of the team, never had any disciplinary problems.
And before that, he was an L.A. police officer for eight years. So he's a man who has a long history in law enforcement. Obviously, it's a very unusual bizarre case and one that we're following very closely -- Carol.
COSTELLO: Alina Cho live in New York for us.
The shuttle "Enterprise" is a step closer to its final destination, the Intrepid Sea, Air and Space Museum in the New York Harbor. Over the weekend, the shuttle was separated from a 747 at JFK in a process NASA calls demating.
Next month, the "Enterprise" will be hoisted on to a barge and taken to the retired aircraft carrier that houses the museum.
The NAACP is launching a drive to register hundreds of thousands of African-American voters. But will the group reach its goal with new state laws making it harder to register? We'll talk about that after a break.
(COMMERCIAL BREAK)
COSTELLO: This isn't good. Stocks are down about 140 points right now less than an hour after opening bell. Alison Kosik is at the New York Stock Exchange. So is it JPMorgan Chase or is it something else?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It's a little bit about JPMorgan Chase, but what you are really seeing is Europe, Europe and the banks, those two items front and center on Wall Street.
You see the Dow dropping 152 points. You know what? Investors, Carol, they are keeping a close watch on what's happening in Europe. There's a meeting of European finance ministers this week and a big worry about stability in Europe and the continuing political changes there.
Remember, Greece is still trying to put together its government so you have that uncertainty hanging over the markets today. And as you said, JPMorgan Chase, yes, that's a factor as well. We are watching shares of JPMorgan falling almost 3 percent as we watch the developments continue to come out.
Heads are starting to roll there. You remember a top executive, Christine talked about in the last hour, has resigned and Wall Street, of course, is expecting more fallout to come especially in the form of new regulation.
Other big banks are trading lower as well. Keep in mind, the Dow did have its worst week since December. Last week, the Dow fell 1.7 percent. So this is sort of more of the same -- Carol.
COSTELLO: Alison Kosik at the New York Stock Exchange. Checking other top stories this morning at 15 minutes past the hour.
Mark Zuckerberg's Facebook is expected to sell stock to the public this week for the very first time. The initial public offering could value his company had more than $100 billion. Zuckerberg, well, it's his birthday today, turns 28 today. As you know, he co-founded Facebook in his Harvard dorm room in 2004.
Florida A&M University's board of trustees meet today to talk about the future of the school's marching band. The band has been under suspension since the hazing-related death of drum major Robert Champion. Thirteen face charges in connection with that death. The band's long time director, Julian White, resigned under pressure last week.
North Carolina's governor says she's embarrassed after voters there passed amendment one to the state's constitution. The law bans same-sex marriage and civil unions.
(BEGIN VIDEO CLIP)
GOVERNOR BEVERLY PERDUE (D), NORTH CAROLINA: This is wrong for North Carolina. Clearly and simply people around the country are watching us and they are really confused. Folks are saying what in the world is going on in North Carolina. We look like Mississippi.
(END VIDEO CLIP)
COSTELLO: You can imagine that last part didn't sit well with Mississippi's governor. He called the comment petty and says apparently North Carolina voters are more in tune with his state's traditional values than with the values of their own Democratic governor.
Black pastors have been strong supporters of President Obama, but the allegiance is being tested with the president's announcement that he supports same-sex marriage.
CNN's Athena Jones reports the issue was raised in many Sunday sermons.
(BEGIN VIDEOTAPE)
ATHENA JONES, CNN CORRESPONDENT (voice-over): From Baltimore --
REVEREND DR. EMMETT BURNS, PASTOR, THE RISING SUN BAPTIST CHURCH: I love the president, but I cannot support what he has done.
JONES: To Atlanta.
UNIDENTIFIED MALE: I'm not mad with the president.
JONES: To New York.
UNIDENTIFIED MALE: It's no one's business. It's only the couples' involvement. It shouldn't be a community concern.
JONES: Black pastors and church goers tackled the topic of same- sex marriage Sunday. Days after President Obama expressed his support for it. At a church in Washington where the Obamas celebrated Easter last year, Reverend Wallace Charles Smith believes the president got it wrong.
UNIDENTIFIED MALE: We would have preferred had he not weighed in on the issue.
JONES: But he and his congregation have been praying for President Obama every Sunday for years. And this day was no different.
UNIDENTIFIED MALE: Will this hurt the African-American communities support for the president in the upcoming election? Well, I would hope not. We have some larger challenges that --
JONES: Darryl Wise, a Shiloh member who is gay says the president took a courageous stand.
DARRYL WISE, SHILOH BAPTIST CHURCH MEMBER: I'm a black gay male and also a Baptist and I feel that things will change and opinions will change and you lift it up to the Lord.
JONES: While African-Americans have been a strong base of support for the president, polls show they are more likely than whites to oppose same-sex marriage. That opposition has softened in recent years.
But in Baltimore, Pastor Emmett Burns is so upset he publicly withdrew his support for President Obama on Sunday and says the issue will cost him the election.
BURNS: People I know, people have come up to me are saying that they don't support this. They don't like this. They are disappointed with the president and they plan to stay home. I don't plan to vote for Romney for sure. Right now, I plan to stay home.
JONES: Burns who is also a Maryland legislature is leading a petition drive to force a public vote on a new state law legalizing same-sex marriages. Athena Jones, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: Same-sex marriage split between the president and black pastors comes as the NAACP is launching a major voter registration drive. Marvin Randolph is the group's senior vice president for campaigns. Welcome.
MARVIN RANDOLPH, NAACP, SENIOR VICE PRESIDENT FOR CAMPAIGNS: Good morning.
COSTELLO: So you heard what Reverend Burns said in Baltimore. He said that African-American voters are going to stay home and not vote for the president. This could cost the president his job. Do you agree?
RANDOLPH: Well, I think what's important this election year is that we remind people of what's at stake. And whether you care about racial profiling, whether you care about women's rights, whether you care about workers rights, the only way to effect the issues that you care about is by voting at the ballot box.
The only way to vote at the ballot box is by registering and turning out on Election Day. So we have to make sure that African-Americans don't stay home this year. Remind them of what's at stake.
COSTELLO: It's a difficult thing any way. I mean, people aren't really that motivated to vote this year anyway because the economy is getting better, but it's getting better so slowly so that may keep voters at home.
Also, you've got this issue that same-sex marriage that may keep voters at home and also you have a number of voter ID laws going into effect across the country, which will also make it harder for minorities to vote in the upcoming elections.
RANDOLPH: I think what we have to remind people of and what this campaign that we launch this year, this is my vote is about, is reminding people what is at stake. The common misconception is this is just about the presidential election.
There are places where there are sheriffs and police commissioners and judges elected and appointed and things that matter in our community every day are decided by whether or not you vote.
And NAACP this year is launching an historic campaign to make sure that we're bringing the ability of people to turn out and vote and making it's simpler for people at the polls instead of more difficult.
COSTELLO: How are you doing that? How are you convincing people?
RANDOLPH: Well, what's unique about this campaign is that we are blending the deep broad set of activists across the nation with 21st Century campaign technology. So what does that mean?
That means that if you want to get information about what your voting rights are this year or what the laws are in your state? You can go to this is my vote.org and you can find out what the rules and laws are.
You can also fill out a registration form while you are on the web site. If you are not internet savvy, you can just pick up the phone and dial 866-my vote1 and we will send you a registration form.
We know that in the last presidential election cycle black youth turned out at a record 17 percent higher. So our birthday gift over 500,000 African-American youth across the nation is we're sending them a filled out voter registration form that all they have to do is sign and send in.
We've got to make sure that our response to this coordinated attack against voting rights is a coordinated campaign that makes it simpler for people to vote.
COSTELLO: Marvin Randolph from NAACP, thanks for joining us this morning.
RANDOLPH: Thank you so much.
COSTELLO: We asked you to talk back on one of the big stories of the day. The question this morning, why aren't presidential candidates talking more about the economy? That's next.
(COMMERCIAL BREAK)
COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question for you this morning, why aren't candidates talking more about the economy? Politicians keep talking about social issues like the war on women or same-sex marriage.
Today, President Obama will speak at Barnard College for women and tape an appearance for "The View" and then he'll attend a fundraiser with Ricky Martin and I don't think the economy will be front and center at that event.
This comes after Mitt Romney's speech to student at Evangelical Christian College Liberty University where he drew a line in the sand on the subject of marriage.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Marriage is a relationship between one man and one woman.
(END VIDEO CLIP)
COSTELLO: Keep in mind those same Liberty students could have a tough time finding a job in this economy. When the candidates do talk about the economy, it's often to attack one another like the new Obama campaign ad featuring steel workers who say Romney's Bain Capital firm cost them their jobs.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I was devastated. It makes me angry. Those guys were all rich. They all had more money than they'll ever spend but they didn't have money to take care of the very people that made the money for them.
UNIDENTIFIED MALE: Bain Capital walked away with a lot of money they made off of this plant. We view Mitt Romney as a job destroyer.
(END VIDEO CLIP)
COSTELLO: In speeches, Mr. Romney talks about Mr. Obama being to the left of Bill Clinton. A CNN/ORC poll shows 53 percent of Americans say the economy, not social issues, is the most important issue facing the country, but what are they hearing?
Recently from the president about homeowner and student loan relief and from Romney about how the free market helps economic growth. Americans appear ready to hear big bold plans on how to fix things, but will they?
So the talk back question for you today, why aren't candidates talking more about the economy? Facebook.com/carolcnn. I'll read comments later this hour.
Facebook is finally for sale, but getting your hands on some shares may not be as easy as writing a check.
(COMMERCIAL BREAK)
COSTELLO: Just about 30 minutes past the hour. Checking our top stories. A massive search under way for a missing FBI agent in Southern California. A Burbank police say Steven Ibens is suicidal and possibly armed. He is a three-year veteran of the bureau and specializes in national security issues.
This morning, John Edwards' defense team has started presenting its case in this federal corruption trial. The former presidential candidate is accused of violating campaign laws by funnelling donors' money to his mistress and mother of his child. Last week the judge turned down the defense motion to dismiss the charges.
New fallout from that staggering $2 billion loss at the nation's largest bank, JPMorgan Chase's chief investment officer is retiring in the wake of those risky investments. There are also reports that two other top executives are resigning.
A government watchdog on the bank bailout says CEO Jamie Dimon should resign from the New York Federal Reserve Board. Elizabeth Warren says the move would shore up public trust still rattled from the 2008 financial meltdown.
(BEGIN VIDEO CLIP)
ELIZABETH WARREN, TARP OVERSEER: There's been a guerrilla war out there in which the largest financial institutions have been doing everything they can to make sure that financial regulations don't get it put in place and if they do get put in place that they are loaded with loopholes and not very effective.
(END VIDEO CLIP)
COSTELLO: Warren helped oversee the TARP program, she is now running for a Senate seat in Massachusetts.
All this week we're going in depth on Facebook which is set to go public this week. The company plans to sell 337 million shares at $28 to $35 a share making and that could make it the biggest IPO in history with a value of nearly $100 billion. To Christine Romans in New York, wow.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's a lot of money, Carol. Look and there's so much hype and frenzy about buying these shares. The question isn't really should you buy Facebook but can you buy Facebook?
(BEGIN VIDEO CLIP)
ROMANS (voice-over): Suits meet the hoodie. Facebook's Mark Zuckerberg gets rock star treatment on his company's road show but should he get your money when his company goes public? Facebook will price that IPO between $28 and $35 a share.
RYAN MACK, PRESIDENT OPTIMUM CAPITAL MANAGEMENT: Wait about a month after the stock has been released. The mutual funds and institutional investors are going to be the major ones buying up the stock. So when the stock actually opens, I do believe it's going to come in probably between $90 and maybe even $100 a share when it actually gets released.
So let the hype go out, go down, let the euphoria go down.
ROMANS: Because a lot of rich people get in before you ever will. Investment banks underwriting the IPO get the first crash at shares. They sell them to their best clients, hedge funds, big money managers and insiders. They get that IPO price. Then retail investors, the little guys they get their shot. Dead last.
E-Trade is an underwriter of the IPO and E-Trade will have some shares available. TD Ameritrade and Charles Schwab too.
(on camera): Limit order, two words, if you're going to try to buy the IPO.
MACK: Yes.
ROMANS: Limit order.
MACK: What's the price? What's your budget? And that's going to be very valuable especially limit order to make sure the essentially you limit the price in which you're willing to pay on the particular stock.
ROMANS (voice-over): The most famous investor will not buy the Facebook IPO.
WARREN BUFFETT, BERKSHIRE HATHAWAY: I can't recall in my life buying into an offering, the idea that something coming out will say out on Monday that's being offered with significant commissions and all kinds of publicity and everything the seller electing the time to sell is going to be the best single investment that I can make in the world among thousands of choices; mathematically impossible.
ROMANS: Before obsessing about an IPO make sure you're maxing out your 401(k), you're balanced properly and have the right mix of investments. That's a surer bet.
(END VIDEO CLIP)
ROMANS: And you know brokerage houses Carol don't let anyone buy IPOs. Not just anyone can walk in on a risky IPO. They are risky investments. So unless you have traded stocks before and know what you're doing, you're not likely to get a shot. TD Ameritrade says it's clients will give a shot at the IPO price, that's the important part here at the $28 to $35. But you know to have assets of at least $250,000 in your account with TD or completed 30 trades in the last three months to qualify.
COSTELLO: Wow.
ROMANS: And they have some other eligibility requirements. How about Charles Schwab? Clients need a minimum of $100,000 in their Schwab accounts or they've got executed 36 trades in the last year. That -- that's not me Carol. I'm pretty sure it's not you. Schwab also has additional eligibility requirements.
Now I will say that I did go in and you know I'm going to put in like one of those limit orders and see and I'll let you know if anybody gives me any of this but I doubt it.
COSTELLO: Ok, I'm going to call you later today. Christine Romans.
ROMANS: Call me Friday. Friday I'll know for sure.
COSTELLO: Ok, will do. Thanks Christine.
It's dominated the talk for more than a week now. The debate over same-sex marriage and President Obama's support for it. But is the time for Mr. Obama to get back to talking about the economy? The "Political Buzz" panel is ready to jump in on that one.
(COMMERCIAL BREAK)
COSTELLO: "Political Buzz" is your rapid fire look at the best political topics of the day. Three questions, 30 seconds on the clock. Playing with us today, CNN contributor and Democratic strategist, Maria Cardona and our right leaning contributor, Will Cain. Welcome to both of you.
WILL CAIN, CNN CONTRIBUTOR: Good morning.
MARIA CARDONA, CNN CONTRIBUTOR: Thank you Carol. COSTELLO: Good morning, first question, it's been a full week since Joe Biden forced Mr. Obama's hand on the same-sex marriage issue and we're still talking about it. Just look at the new covers of "Newsweek" and the "New Yorker" today. The President will give the commencement at all women's college and then he'll attend a fund- raiser featuring Ricky Martin today and of course he's going to appear on "The View" on Tuesday.
So I ask you, when will the President concentrate on the economy? Maria?
CARDONA: Carol, he actually has never stopped concentrating on the economy. We actually have a President who can walk and chew gum at the same time. And in fact, other than the interview where he actually stated his stance on gay marriage, he's been talking about student loans. He's been talking about giving homeowners relief from -- from those who are under water on their mortgage.
He's been talking about giving jobs to veterans, he's been talking about giving tax cuts to small businesses. He's been talking about how to make this economy continue to work and create jobs.
So he has not stopped talking about it. I know this is stuff that we love because its crack for us but the President is focused on the economy.
COSTELLO: Will?
CAIN: Right. Right. Like this manufactured war on women and this choreographed gay marriage talk over the past week.
CARDONA: That's your people Will.
CAIN: These -- these weren't -- these weren't purposeful distractions from talking about the economy. He is not going to talk about the economy. Carol that's the answer. He's going to do everything he can to avoid this being the topic that we talk about and think about and vote upon. And it's not just because his record right now isn't the one he's the most proud of.
It's also because look it's May. The election is in November. Talking about the economy right now would be like looking up third quarter of a game pointing to the scoreboard. It's not over. Between the Chinese economy slowing down and citizens leveraging up, Europe falling apart, economy is hard thing to bank on right now.
(CROSSTALK)
COSTELLO: All right on to question number two.
CAIN: I blew through the buzzer. I know I'm sorry.
COSTELLO: I know it's ok, it's ok I'm feeling generous today. On to question number two, it's the recession deja vu all over again. One of America's biggest banks J.P. Morgan Chase makes a bad bet and we all suffer. I thought this kind of thing wasn't supposed to happen anymore. So that question and we ask again. Which candidate has the big bold idea to make sure big banks don't fail again? Will?
CAIN: Well, neither of them. Because there is no big bold idea to ensure that banks don't fail. Businesses of every stripe and every size fail across this country from lemonade stands to sporting good stores to banks. They failed, that's what capitalism is, the success and failure.
And you can't put some kind of religious devotion on the concept of regulation to think you're going to end failure. You're not.
All you can do is end the failure being socialized on the rest of us. That's too big to fail is too big to exist. If a bank fails and it has huge ripple effects across society, we have to reduce them to a size where they fail and it can go just like any other business in the economy. Fail and go away.
COSTELLO: Maria?
CARDONA: I actually agree with Will on this one thing that we can't regulate or legislate failure or non-failure. That's up to businesses. But what we can do and what this President is doing is to make sure when those big businesses fail, that it's not you and I and Will and other taxpayers that are left holding the bag and having to pay for it, which is exactly what happened in 2008.
That's why this President and this Congress passed the Dodd-Frank financial reform bill because it actually focuses on protecting consumers, protecting taxpayers and making sure that JP Morgan when they're making these risky investments, they're the ones who have to pay for it and not us.
COSTELLO: Ok. On to your buzzer beater now. 20 seconds each -- third question. A former Obama speech writer will write a sitcom for NBC about a dysfunctional first family. On whom is he basing his characters? Maria.
CARDONA: Who news. Clearly it's not this first family because they are quite ideal as the writer himself has said. So maybe it was Grover Cleveland. I've heard that his family had some really dysfunctionality there. Or maybe Van Buren. Man, there were some issues with him while he was in the White House for sure.
COSTELLO: Wow. Will?
CAIN: I don't Maria, think you have to go that far back into history to find a dysfunctional first family. I haven't seen the show but from what I read it has a single child, it's a dysfunctional family like one that I don't had to deal with infidelity. What kind of presidency could that be? How far back do I have to go? Do I have to go a decade? A little more than a decade. 12 or 13 years, right, Maria? Can you help me out, Maria?
CARDONA: Are you talking about Jimmy Carter. I don't think that's fair.
CAIN: Right. Right.
COSTELLO: Will Cain, Maria Cardona, thanks for playing today.
CARDONA: Thank you Carol.
COSTELLO: Coming up in the next hour of NEWSROOM, a live interview with Jerry Falwell Jr. He's the president and chancellor of Liberty University and the son of the school's founder. We'll ask him if Romney's remarks at the university over the weekend helped him win over evangelical voters. That will come your way in about 40 minutes.
Every family has its little secrets. Even the ones on television. Now a "Modern Family" cast member reveals the truth about her health.
(COMMERCIAL BREAK)
COSTELLO: 45 minutes past the hour.
Checking our "Top Stories" now. Facebook is expected to start selling stock to the public this week for the very first time. The initial public offering could value the company at more than $100 billion. That's the co-founder Mark Zuckerberg. It's his birthday; he turns 28 today. And as you well know, he came up with Facebook in his Harvard dorm room in 2004.
John Edwards' defense team has started presenting its case in his corruption trial. The former Democratic presidential candidate has pleaded not guilty to violating campaign contribution laws. Prosecutors say he used hundreds of thousands of dollars in campaign money to conceal his affair with Rielle Hunter.
The shuttle "Enterprise" is a step closer to its final destination, the Intrepid Sea, Air and Space Museum in New York. Over the weekend the shuttle was separated from a 747 at JFK. Next month the "Enterprise" will be hoisted on a barge and taken out to the retired aircraft carrier which is the museum.
The ferocious five "Avengers" are bringing in a fortune at the box office -- I can't even speak. I'm so stunned by how much money is brought in. It's brought in a billion dollars in just 19 days. That is insane.
Nischelle Turner is in Lost Angeles. I just saw the movie this weekend and I must say, I'm not really that surprised. It was good. It was fun.
NISCHELLE TURNER, HLN CORRESPONDENT: It was. It definitely was. Two words for you, carol -- cha ching. There is no stopping "The Avengers" juggernaut. Seriously that first weekend haul of $207 million was record shattering. The second, well just more of the same. The superhero ensemble earned more than $103 million at the box office this weekend, which is another record for the most money made by a movie in the second weekend. So the official numbers are going to be released later today but many people believe that the action adventure will top, like you said, that $1 billion with a b -- billion dollar mark in box office revenue worldwide.
Guess what; Disney is like a billion dollars, 19 days, yes, please because they have announced that they are already planning the sequel to "The Avenger". I know you said you just saw it. So many A- listers. But for me, I loved Mark Ruffalo as "The Hulk". I thought he made the movie. He was fantastic.
COSTELLO: I loved that Dr. Banner character. I found him very alluring, as I did (inaudible) frankly. Any who -- let's talk about -- my husband and I had this conversation about the movie.
TURNER: I'm sure you did.
COSTELLO: Let me tell you, my husband really enjoyed that conversation.
Anyway, I digress -- let's talk about "Modern Family". A cast member, she's been keeping a painful secret. Tell us about it.
TURNER: Yes, absolutely. Sara Hyland we're talking about. You know she makes the audiences laugh on screen. He's this boy crazy texting messaging teen, Haley Dunsby on the show, "Modern Family". But most of us were unaware of the 21-year-old's health issue.
She tells ABC News that she's been struggling with kidney disease since she was nine years old. And that she'd would be in a lot of pain a lot of the time, especially if she didn't get 12 hours of sleep. Sara says she would often sit down or text on her phone during a scene to hide her exhaustion. But you know Carol, she's a fighter.
Just last month she underwent kidney transplant surgery and the donor was her dad. Luckily they were a perfect match. Hyland plans to spend the summer recovering while "Modern Family" takes the break from filming.
She's already had some help from her co-star Julie Bowen, who plays Claire Dunsby on the show. Bowen has been paying her visits and cleaning their house, which is great. It sounds like something that Clair would do, from the show right.
COSTELLO: That's awesome. Thanks Nischelle.
TURNER: Absolutely, Carol.
COSTELLO: Want information on everything breaking in the entertainment world. Tune in to "showbiz tonight" at 11:00 Eastern on HLN.
Moms to be, here's something to expect when you're expecting. Drama over baby names. We now know which ones were the most popular last year. The social security administration says these are the top five names for boys. Noah came in at number five. Jayden was forth. William came in third. Mason was number two and Jacob was number one.
On the girls' side. Eva came in at number five. Olivia fourth. Emma third. Isabella second and Sophia topped the list.
The fate of Florida A&M University's marching band could be decided today. In a few minutes the university's board of directors will begin meeting to discuss what to do after the hazing-related death of a band member.
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COSTELLO: In just a few minutes, Florida A&M's University's board of trustees. It's scheduled to meet and talk about the future of the school's marching band. Now the band has been which has been suspended since the hazing related death of drum major Robert Champion. Thirteen people have been charged in connection with his death.
George Howell has been following this story from the very beginning. First of all, give us a sense of how important this ban is to the university?
GEORGE HOWELL, CNN CORRESPONDENT: Well, Carol, let's talk about the long history. This ban was established in 1892, so it's got very long history. These band members perform at presidential inaugurations. They've taken top honors at countless competition. This is really the school's money maker. Just like the foot ball thing. People come to see this band.
You can imagine all eyes are on this band waiting to see what happens in this 11:00 a.m. conference call as school leaders talk about what's next.
COSTELLO: So what could happen? The band could be suspended for a longer period of time or eliminated all together?
Robert Champion's mother; Pam Champion, she was very clear. She wants to see this band disbanded until it's cleaned from top to bottom. What that means, could it mean new people to lead the band also looking through what's been called the culture of hazing within the band. That has yet to be determined, what will happen. But we do know that the band has been on suspension and who would remain on suspension. Again we do -- expect school leaders to talk about the status of the band and whether that suspension continues.
COSTELLO: Even former band leaders who have left the university say the band shouldn't come back next year because that would be too soon?
Again, it's a culture of hazing. I think that people are looking at this band now with such a long history and how long has this been happening? Has it been a decade? How long has this been happen ing. Has it been longer?
Trying to figure out who is behind the hazing and how to root it out. That's what people are looking at. Whether the band gets back on the field has yet to be determined. It all depends upon when they feel the culture of hazing is gone.
COSTELLO: Ok. I know you are dying to listen to that conference call so --
HOWELL: I'm happy to be (inaudible), yes.
HOWELL: 1 -- thank you so much California high school students are getting high marks for healthy eating. A new study shows that California students eat fewer calories per day than students in 14 other states. One possible reason, the state restricts the kind of junk foods available in school vending machines or snack bars.
The lead researcher says more work needs to be done to ensure that schools have healthy alternatives in lunchroom menus.
We asked you to talk back on one of the big stories of the day. The question today, why aren't the presidential candidates talking more about the economy? Your responses next.
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COSTELLO: We asked you to "Talk Back" on one of the big stories of the day. The question why aren't presidential candidates talking more about the economy. Phillip says would you talk about something you don't know how to fix.
This from Walter, "I don't think the gay marriage issue is a distraction. As voters, we definitely need social perspectives of the candidate to be revealed before they get elected. Better now than in office."
This from Marlina, "Because they don't want to deal with it. Would you want to talk about the boring. I'll change it later it will work out in the end economy."
And this from Nancy. "Because it's easier mud at mud at each other than to roll up their sleeves and come up with some legitimate answers." Keep the conversation going. Facebook.com/carolcnn. Thanks as always for your comments.
I'm Carol Costello. Thank you for joining me today. CNN NEWSROOM continues right now with Kyra Phillips.
