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Highway Killer Sought; JPMorgan Boss Faces His Bosses; Airport Guard Used Dead Man's ID; Edwards' Daughter May Testify Today; JPMorgan CEO Faces Shareholders; Highway Killer Sought; Edwards' Daughter May Testify Today; Stranded at Sea, Now Suing Princess Cruises
Aired May 15, 2012 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning, Brooke. Thank you.
Happening now in the NEWSROOM, terror on the highway. Someone posing as a police officer is pulling drivers over and shooting them dead. Mississippi this morning asking for your help to catch a killer.
Looking for Isabel. New pleas for help today from the parents of a missing 6-year-old girl taken from her bed last month.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: She's only 6. Please hurry and get somebody over here.
(END VIDEO CLIP)
COSTELLO: The 911 tape and the father's eerily calm call to police. The high-profile search intensifying.
Plus this --
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: JPMorgan is one of the best managed banks there is. Jamie Dimon, the head of it, is one of the smartest bankers we got.
(END VIDEO CLIP)
COSTELLO: President Obama going on "The View" stressing why it's so important for Wall Street to clean itself up. This hour shareholders are getting together in Tampa. Will they fire their Dimon?
And busted at the gate. A security guard at the Newark Airport accused of using -- get this -- a dead man's identity for the last 20 years. He had access to secure areas, supervised 30 guards and could walk scot-free through metal detectors. Newark security since scrambling this morning.
NEWSROOM begins right now.
And good morning to you. I'm Carol Costello.
We begin this morning in Mississippi where there is a killer preying on motorists, and even more startling, police believe the shooter may be posing as a cop. It's a chilling theory to explain the killings both within the last week, both on the desolate stretches of highways about 55 miles apart. Both cars were parked on the side of the road. One victim was still behind the wheel, the other beside her vehicle. Investigators think they may have been pulled over and unaware of any danger.
Martin Savidge is here to tell us more.
Do they know that this killer is posing as a police officer or is that just an educated guess?
MARTIN SAVAGE, CNN CORRESPONDENT: It's an educated guess because at this point there are no witnesses, nobody saw -- at least nobody lived to tell authorities exactly what happened here. And you point out that there was one person behind the wheel and one person outside of their vehicle. That's kind of a chilling thing because that might suggest at the very last seconds these people realized it wasn't law enforcement.
And let me explain how all this happened. It was last week. It was May 8th was the first victim. And it was around 1:30 in the morning on a dark desolate highway in northwestern Mississippi. A 74- year-old man shot and died behind the wheel. Three days later, you got now a woman, 48 years, local, this woman. And she was shot and killed outside of her vehicle.
Now what do these events have in common? Both of them happened to be driving down a dark Mississippi highway. And this is what authorities can't quite figure out. Is it one shooter, is it more than one shooter? They do believe that the shootings are linked. They don't know if it was done exactly by the same suspect.
So that's why they fear it could be somebody posing as a police officer because in both cases the vehicles pulled to the side of the road. The cars seemed to work fine. The only explanation appears to be that somebody thought hey, it's the law behind me, I better pull over.
COSTELLO: So what are police asking drivers to do? If I'm driving down the road and a cop has a siren on behind me, I'm thinking twice about stopping.
SAVIDGE: Yes. And then this is the odd advice that Mississippi authorities are giving. But you can understand it. What they're saying is that, if you're driving down a highway late at night and you see blue flashes behind you, call the cops, while at the same time turning on your own flashers and at a safe speed pulling into an area that is well illuminated with lots of people around you. But you call the authorities. You want to make sure it truly is a police officer behind you. If it's not, it alerts the authorities that they've got a problem and exactly where you are.
COSTELLO: Wow. Martin Savidge, thanks so much.
In the next hour, the man in charge of JPMorgan chase faces his bosses. The shareholders who own his company stock. Jamie Dimon who makes $23 million a year will be greeted by a tough audience with tough questions. How did his bank lose $2 billion in risky investments in just a matter of weeks?
And it's not just the shareholders who want answers. Last hour we heard from a member of the Senate Banking Committee. Even he's not sure that JPMorgan did anything improper.
(BEGIN VIDEO CLIP)
SEN. BOB CORKER (R), TENNESSEE: It's my belief that candidly these trades are the kind of trades that may well be OK per the Volcker Rule that was passed. But I don't think any of us know that. I think you've seen the regulators sort of backing off and saying that, you know, this is a very complex situation. They don't even know. So I just think it's important for us as a nation and a nation that's just gone through the crisis we've gone through to understand what is legitimate, what isn't legitimate.
(END VIDEO CLIP)
COSTELLO: CNN's Poppy Harlow is outside of the shareholder meeting that's taking place in Tampa, Florida.
So, Poppy, does Jamie Dimon know if this trade violated the Volcker Rule?
POPPY HARLOW, CNN CORRESPONDENT: So, Carol, good morning to you. Jamie has said he does not believe that this even would have violated the Volcker Rule which isn't in effect. It's still being written. Because it is a, quote-unquote, "economic hedge."
What does that mean? He believes and the bank believes that they were offsetting risks in other parts of the bank by making this big bet. That is what bank lobbyists have pushed for to be included in the Volcker Rule. We'll see if it ends up in the final rule when it's written.
I will tell you, I just spoke with a shareholder who was just walking into the meeting, and I asked him what are you going to ask? What is important to you? Is this $2 billion loss going to consume the meeting? He said it will but it probably shouldn't. And he said, look, we're talking about a $2 trillion bank here. This is a $2 billion loss.
He's right. This is the biggest bank in America. At the same time, he said, the only thing that bothers me is it allows Washington to open their mouths again inferring that there's too much regulation. We heard the president just this week come out on "The View" and say this is another example of why we need Wall Street reform. So even as even as Jamie Dimon admitted last week this plays right into the hands of the pundits -- Carol.
COSTELLO: So that kind of throws off my last question. I mean one top level executive's head already rolled. She was fired because of this risky trade. I guess Jamie Dimon's job is safe then?
HARLOW: That is what analysts are telling me. They are going to vote in this meeting on whether or not Jamie should hold both the CEO and the chairman slots. Some believe that no one should hold both those roles in a big publicly traded company especially a company as big as this. The question came up because of this loss, is this bank just too big to manage? Does Jamie have a full grasp?
Look, the president has even said Jamie is one of the smartest bankers on Wall Street. He has proven himself to be top of his class when it comes to risk management. Now this obviously knocks that a little bit. But from what I heard, I spoke with a banking analyst very well known who covers JPMorgan, Mike Mayo, last night and he told me if there were another big bank that were not performing as well as JPMorgan, then that CEO's job might be in trouble but he does not believe that Jamie's job is in jeopardy.
Just to give you the facts, this company is still going to make money this quarter. They're still going to likely make money billions and billions, tens of billions of dollars this year. So it's a big loss but they're still really outperforming their peers -- Carol.
COSTELLO: Yes. Well, they made $19 billion last year. So I guess they can absorb the loss. Poppy Harlow live in Tampa, we'll get back to you.
Also this morning, the phone hacking scandal in Great Britain snags the top exec and Rupert Murdoch's media empire. British prosecutors have charged Rebekah Brooks with trying to obstruct a police investigation. Brooks was the boss at News International and was a friend of Britain's last three prime ministers.
An Arizona father calmly tells police his 6-year-old daughter has gone missing. Listen to the just released 911 tapes.
(BEGIN VIDEO CLIP)
SERGIO CELIS, ISABEL'S FATHER: I need to report a missing child. I believe she was abducted from my house.
UNIDENTIFIED 911 DISPATCHER: How old?
CELIS: Six years old.
UNIDENTIFIED 911 DISPATCHER: Is it your daughter?
CELIS: Yes.
UNIDENTIFIED 911 DISPATCHER: Why do you think she was abducted?
CELIS: I have no idea. We woke up this morning. I went to go get her up for her baseball game and she's gone. I woke up my sons. We looked everywhere in the house. And my oldest son noticed that her window was wide open and the screen was laying in the backyard.
(END VIDEO CLIP)
COSTELLO: You heard the story about Isabel Celis. She's now been missing for more than three weeks. Tucson Police says the girl's father has been told to stay away from his two sons as part of an agreement with the state's Child Protective Services. But police are also saying don't read too much into that decision.
In Southern California, the sun is just coming up and the search for a missing FBI agent enters a fifth day. The search now scaled back in the Vertigo Mountains after a team of 50 agents failed to turn up any new signs of Stephen Ivens. He's described as distraught and possibly suicidal. Ivens specialized in counterterrorism cases.
A new federal report is shedding light on security breaches at some of our nation's major airports that shows almost half go unreported. So today the House Homeland Security Committee is holding a hearing to find out why. Newark Liberty International has been particularly singled out. The report shows it had four big breaches last year. And here are some of them.
A dead dog being loaded on a departing flight without screening for explosives or disease. A carry-on bag containing a knife bypassing TSA screening and a passenger who was not screened properly before entering the sterile area.
The report says the TSA does not provide the necessary guidance and oversight to ensure that all breaches are consistently reported, tracked and corrected. The TSA says it's working to correct the problems.
And yet an even more disturbing story about Newark's Liberty Airport this morning. A security guard there is accused of using a dead man's identity for the last 20 years.
Reporter Marcia Kramer with our affiliate WCBS has more on the man taken into custody.
(BEGIN VIDEOTAPE)
MARCIA KRAMER, REPORTER, WCBS (voice-over): At Newark Airport, this man is known as Jerry Thomas and for nearly 20 years he has guarded some of the most secure areas of one of the nation's busiest airports. He was arrested after authorities discovered he is really an illegal Nigerian immigrant with four other aliases who entered the country in 1989.
(On camera): What was it like living with a dead man's I.D. for 20 years?
(Voice-over): In this case the defendant utilized an elaborate and complex scheme of identity theft to defraud his employer, the state of New Jersey, the federal government and the Port Authority, said Port Authority inspector general, Robert Van Etten. Somehow the Nigerian managed to get the birth certificate and Social Security number of a man murdered in Queens in 1992. He used them to get a New Jersey driver's license, a New Jersey security guard license, an airport I.D., even credit cards. Amazingly, he worked security at Newark including access to the tarmac and passenger planes without ever being detected. At the time of his arrest, he supervised 30 other guards. Passengers were stunned.
UNIDENTIFIED FEMALE: Oh my god is all I can say. What -- where was the breakdown?
UNIDENTIFIED MALE: It's not what is supposed to happen.
UNIDENTIFIED FEMALE: It's terrible. Terrible. Shouldn't be like that.
UNIDENTIFIED FEMALE: I'm stunned. You hear things and you can't believe this kind of thing happens particularly at a major metropolitan airport like this.
UNIDENTIFIED FEMALE: It's a very scary thing.
UNIDENTIFIED FEMALE: You can't trust anybody anymore.
KRAMER: Authorities are also investigating if the Nigerian, one of his aliases was Bimbo, was involved in criminal activity at the airport.
(END VIDEO CLIP)
COSTELLO: That was Marcia Kramer reporting.
Speaking of the TSA, the former secretary of state, Henry Kissinger, well, he's the latest in a series of high-profile figures to get patted down by the TSA. "The Washington Post" says a freelance reporter who witnessed the incident says the 88-year-old Kissinger was subjected to the, quote, "Full Monty" at New York's LaGuardia last Friday.
While invasive pat-downs have come under fire, Senator Dianne Feinstein who's had her own hands-on experience with screeners, told FOX News on Sunday, pat-downs might be the best way to detect a nonmetallic bomb like in the case of the al Qaeda plot foiled last month.
(BEGIN VIDEO CLIP)
SEN. DIANE FEINSTEIN (D), CHAIR, SENATE INTELLIGENCE COMMITTEE: I think the pat-down probably is better than the magnetometer. I think Americans have to understand that this particular kind of explosive, nonmetallic, is not easily detectible. That's one of the reasons why Abdulmutallab wore it in his underwear so that he couldn't be patted down sufficiently to detect it. And that's a problem. And that's something that TSA has to grapple with.
(END VIDEO CLIP) COSTELLO: Senator Feinstein was referring to the man dubbed the underwear bomber. He's currently serving a life sentence for trying to bring down a U.S. airliner on Christmas Day of 2009.
Compelling testimony may be on tap today in the John Edwards corruption trial. We're expected -- it's expected his daughter will take the stand.
(COMMERCIAL BREAK)
COSTELLO: It is 16 minutes past the hour. Checking our top stories now.
We begin in Mississippi, where police are looking for a killer who may be posing as a cop. Two people have been found dead in the last week. Both on desolate stretches of highway about 55 miles apart. Investigators say they may have been pulled over thinking they were not in any danger.
Greece's president calling a meeting with leaders of the three main political parties to create a unity government. He's expected to pitch the idea of a government run by technocrats. Attempts to form a coalition government failed yesterday. Greece has until Thursday to form a new government or face new elections.
Two Russians and an American are on their way to the International Space Station. The Soyuz spacecraft blasted off today after more than a month of delays. Crews finally fixed a problem with the capsule's hull.
Now to the Edwards' corruption trial. We don't know if the former presidential candidate will take the stand in his own defense, but we do know his older daughter, Cate, will testify and that could be as early as today.
Here's Joe Johns.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN SENIOR CORRESPONDENT: The defense in the John Edwards' trial has said they could start wrapping up their case by the end of the week. As early as today, we could see Cate Edwards taking the stand.
Cate Edwards' testimony could go a long way to let the jury in on the extent of the family drama in the case and personalize her father because the jury heard so many sordid details about his affair with Rielle Hunter during the course of the trial and it's highly likely that Cate Edwards would have information about what Elizabeth Edwards was saying regarding John Edwards' affair.
But there could be at least a couple other witnesses before Cate takes the stand, including Wade Smith, a longtime friend of John Edwards and a lawyer in North Carolina. The defense may also call a former chairman of the Federal Election Commission, Scott Thomas, to the stand. Thomas was supposed to testify on his misgivings about the case against Edwards but the judge balked at letting the jury hear some of his most important testimony.
The defense has also left open the possibility that John Edwards himself could take the stand. No word on when that decision might be made -- Carol.
(END VIDEOTAPE)
COSTELLO: Joe Johns reporting.
France made history today and it wasn't with the new president's inauguration. A political journalist gets a new title as the first unmarried first lady of France.
(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: who is to blame for the JPMorgan Chase banking fiasco?
If you think the $2 billion loss of JPMorgan Chase won't affect you, think again. Stocks tanked on the news as traders spread about how many other risky trades are out there. JPMorgan Chase's Jamie Dimon is a credible voice in the banking industry. In 2008, Dimon didn't want to take TARP money and his bank weathered the crash better than most.
Still, Dimon in the banking industry spent of millions of dollars lobbying Congress in part against the Dodd-Frank financial reform bill. Now, Dimon says he didn't know about the $2 billion losing trade and that's a red flag according to former regulator Sheila Bair.
(BEGIN VIDEO CLIP)
SHEILA BAIR, SR. ADVISER, PEW. CHARITABLE TRUSTS: This is still a very serious issue. I think it does underscore that even with good management, these institutions are just too big to manage, and especially when they are dealing with very complex derivative instruments trying to hedge risk in very large securities trading books, even the best of managers can stumble.
(END VIDEO CLIP)
COSTELLO: So, what should or can we do if banks are too big to fail.
On "The View," President Obama mentioned JPMorgan chase as a cautionary trail.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This is why we passed Wall Street reform. This is one of the best managed banks. You could have a bank that isn't as strong, isn't as profitable, making those same bets and we might have had to step in. And that's exactly why Wall Street reform is so important.
(END VIDEO CLIP)
COSTELLO: Uh-oh, does that mean if nothing changes, the possibility of another bailout? As for Dodd-Frank, good luck with that. On the books for two years and, still, only part of it has been enacted.
So, the talk back question for you today, who is to blame for the JPMorgan chase banking fiasco? Facebook.com/CarolCNN, Facebook.com/CarolCNN. I'll read comments later this morning.
This morning, it is official. Francois Hollande is the new president of France.
By anyway, Hollande was sworn in today as the country's first socialist president in 17 years and he's wasting no time getting to work by heading to Berlin to discuss the eurozone debt crisis with German Chancellor Angela Merkel. And while technically it's President Hollande's day, eyes or on his unmarried girlfriend, who prefers to be called his companion. The 47-year-old political journalist has three teenagers and says she will keep her day job.
Zain Verjee is live in London.
Oh, Zain, how very French.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Oh my God, she's unmarried and going to be part of the presidential couple. What is the world coming to and in France?
Her name is Valerie Trierweiler and he's decided that she doesn't care. She wants to be a working mom. She wants to continue a job as a journalist.
She works for this very glossy French magazine that's a celebrity magazine called "Paris Match" and she's also a TV presenter. And now, she's going to be the first lady of France.
This is the very first time that you have a couple in the presidential palace and in that role that are not man and wife legally. She doesn't care. She's a divorced mom of three. She wants to continue doing this job and she also says that she wants a lower profile than what Carla Bruni had before and that, you know, she's seen by a lot of people in France as just generally bold. She speaks her mind.
She's politically engaged. She kicked one socialist politician out of a party because she didn't like him and he wasn't very friendly during the campaign. So, she's seen as a very independent woman and she says she's going to stick to her job. So, we'll see whether French people like her or not. She has a down to earth image, she doesn't dress sort of social but down to earth French.
COSTELLO: I know, very different from Carla Bruni. But I'm wondering, what's Carla Bruni up to today?
VERJEE: She's decided, you know what, even though her husband decided that he's now leaving politics entirely, she's going to start her showbiz career, and she wants to kick it off by singing new tunes, putting together an album and her agent said that she wants to start releasing one soon, probably around the fall.
So, we can look out for hits from Bruni soon. It's not first lady, first singer.
COSTELLO: Mr. Sarkozy will be a stay-at-home dad?
VERJEE: He can be part of the backup band if he really wants to be in the limelight.
COSTELLO: Zain Verjee, thanks.
VERJEE: All right.
COSTELLO: The head of JPMorgan Chase getting ready to face shareholder shareholders. So, will they call for him to step down after the company's $2 billion gamble went south?
(COMMERCIAL BREAK)
COSTELLO: It is 30 minutes past the hour. Good morning to you. I'm Carol Costello.
Stories we're watching right now in the NEWSROOM:
In Mississippi, police are looking for a killer who may be posing as a cop. Two people have been found dead in the last week on deserted stretches of highway about 55 miles apart. Investigators say they may have been pulled over thinking they were not in any danger.
This morning, the phone hacking scandal in Great Britain snag as top exec in Rupert Murdoch's media empire. British prosecutors have charged Rebekah Brooks with trying to obstruct the police investigation. Brooks was the boss at News International and was a friend of Britain's last three prime ministers.
More women are now paying their ex-husbands alimony and child support than ever before. That's according to a survey of divorce lawyers. They say it's a reflection of today's society as more women crack the so-called glass ceiling in the workplace and more become the major breadwinners in many families.
The fallout over the $2 billion trading loss at JPMorgan Chase continues to hit Wall Street.
Alison Kosik is at the New York Stock Exchange.
Are things looking down again?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Well, the broader market is looking a little down. But if you talk about JPMorgan shares, they are looking up seeing a bit of U-turn up more than 1 percent. You know what? That's normal after we see the shares really drop over the past five days.
JPMorgan shares plunged 9 percent on Friday as soon as news of the trading loss broke and fell another 3 percent yesterday. We watched other bank shares get hit pretty hard too , including Morgan Stanley, Goldman Sachs and Bank of America.
You know, there some are concerns as this trading mess continues to unfold, Carol. You know, Wall Street is worried other banks could be making these risky bets too. You'll see this continue to weigh on the markets -- Carol.
COSTELLO: Alison Kosik live at the New York Stock Exchange.
So, let's talk about JPMorgan Chase and its powerful CEO Jamie Dimon.
In just about an hour, Dimon will be eating crow, telling shareholders he's sorry that he didn't know his people made a bad bet with credit derivatives. Maybe that will calm down shareholders who are decidedly less rich today. But Dimon's mea culpa may not calm the rest of American because if big banks continue to make these risky bets, well, wee already know what can happen.
(BEGIN VIDEO CLIP)
OBAMA: This is why we passed Wall Street reform. This is the best or one of the best managed banks. You could have a bank not as strong or profitable making the same bets and we may have had to step in. That's exactly why Wall Street reform is so important.
(END VIDEO CLIP)
COSTELLO: Stephen Moore is senior economics writer where "Wall Street Journal" editorial board. Welcome.
STEPHEN MOORE, WALL STREET JOURNAL: Hi, Carol.
COSTELLO: Hi.
So, is President Obama right? If JPMorgan wasn't as strong would taxpayers bail it out?
MOORE: You know, first of all, if Wall Street reforms that Congress had passed were working, this kind of tragedy wouldn't have happened for investors. You know, it's interesting to look at JPMorgan over the last three or four years. Actually, JPMorgan has been one of the highest return stocks and banks of the big banks.
So, just to look at a $2 billion, that's a lot of money to lose no question about it. But JPMorgan has been a high performing bank stock. I'm worried, Carol, that repercussions of this will be a rush to add more regulations on banks and I'm not sure that's what's need right now. We have four or five oversight agencies that regulate banks, everything from the FDIC, to the Fed, to the Treasury Department, to SEC and on and on.
COSTELLO: Yes. I think one of the more disturbing things about this, though, is Jamie Dimon didn't know about this trade. He's the boss. Does that mean his bank is too big? Why didn't he know?
MOORE: Good question. And we don't know the answer to that. And, of course, you know, you can make the argument that he was derelict in his duty as CEO. He should have known about these big trades and didn't.
The question is if we have more federal regulations with this kind of thing be prevented? I'm not sure it would. I mean, why do we think federal regulators would have a better sense of what trades make sense and don't than the people actually making trades at these banks.
Look, one thing that's important for people to understand, you can't look at the bad trades that banks made. As I mention, this stock has done very well over the last three or four years. Jamie Dimon has made billions of dollars for investors. It's almost like saying --
(CROSSTALK)
COSTELLO: Yes. But, Steven, bad trades like that that brought on that nasty recession we went through and I don't think no American wants that to happen again. So, you have to ask yourself, OK, JPMorgan Chase is a profitable bank. It made $19 billion last year. They can absorb this.
But not every bank can. And, frankly, we don't know how many other banks out there are making transactions exactly like this.
MOORE: Look, there's a big question now about whether banks are too big to fail as you know that's the big debate in Washington right now. I am not there yet. One of the problems with big bailout that we did three or four years ago when we passed the TARP program, there's a perception in the market that when banks get really big like JPMorgan, that taxpayers will have to step in and bail them out.
I object to that as a conservative. I don't -- look, I think if banks made bad decisions, Carol, as in this instance with JPMorgan, the people who should lose are investors and not taxpayers. And that's what worries, is that we created this kind of taxpayer safety net for banks which I think is counterproductive.
COSTELLO: OK. Let's talk about banks too big to fail.
MOORE: Right.
COSTELLO: Who will make banks smaller and how can that happen? Because I'm sure Jamie Dimon isn't there going -- saying, you know, I really want my bank to shrink because this will prevent it from happening again.
MOORE: Well, it wouldn't prevent it from happening. But it just means banks wouldn't be able to lose so much money because they would be smaller.
My problem with too big to fail doctrine, Carol, is that just because a bank is big -- and by the way by definition it's big, it's been pretty financially successful to amass those assets, doesn't mean that it's bad or that it's somehow counterproductive for financial markets.
So, I think this idea that just because a bank has a lot of assets and has been successful that it has to be broken up. I have real qualms about that.
COSTELLO: So nothing can be done?
MOORE: Look, I think --
COSTELLO: Regulations won't help? Making the banks smaller won't help? What can be done?
MOORE: You know, businesses are going to make bad decisions. There's no question about it. They'll make good decisions and bad decisions.
I think the important thing here is to make sure that when banks or companies make bad decisions, that the people who bear the cost for that are not taxpayers. That's I think my main point, is that we created this culture in Washington that every big business that makes a bad decision is going to be bailed out, whether it's the mortgage banks or whether it's the big investment banks or auto companies. I just don't think that's a very good free market policy and it puts taxpayers at great risk of huge losses.
COSTELLO: Stephen Moore from "The Wall Street Journal" -- thanks so much.
MOORE: Thank you.
COSTELLO: Bret Michaels has come a long way since he almost died from a brain hemorrhage in 2010. So, has his lawsuit with the Tony Award organizers? He blamed the Tony Award organizers for that brain hemorrhage. Well, we'll tell you what happened to that lawsuit when we come back.
(COMMERCIAL BREAK)
COSTELLO: Remember this? When Bret Michaels took a slip on stage after his Tony Awards performance in 2009?
A year after Michaels almost died from a brain hemorrhage, he says the accident actually caused his brain injury and he sued.
A.J. Hammer is host of "Showbiz Tonight." He's in New York.
So, has the lawsuit been settled finally?
A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Well, Carol, that's what we're being told although details are being kept quiet for now. At the time, the incident left Michaels simply with a busted lip and broken nose, but, yes, he did sue because he blamed the accident for causing a brain hemorrhage and stroke in 2010. Michaels' attorney is telling "Showbiz Tonight," yes, they have reached a settlement but terms will not be made public.
Representatives for the defendant CBS and Tony's also confirm the settlement, releasing a joint statement saying that they have reached an amicable resolution to the suit and not releasing details either.
But most importantly, Carol, Bret Michaels does appear to be in good health and rocking like always these days.
COSTELLO: He does indeed.
History Channel lost a popular star from "Swamp People." Tells us about that.
HAMMER: Yes, this is sad news this morning. Mitchell Guist died Wednesday in Louisiana.
If you don't follow the show "Swamp People," it's a popular history channel TV series that chronicles the lives of alligator hunters in Louisiana. The real show star was aboard a boat when he appeared to have a seizure, according to the local sheriff's department. Now, an unidentified man who was in a separate boat towed the boat back to shore, called 911 and performed CPR. Guist was rushed to the hospital but not enough to save his life.
The History Channel did release a statement expressing their sadness. Here's what they're saying this morning: "Mitchell passed on the swamp doing what he loved. We appreciate your respect for the Guist family privacy and send thoughts and prayers to his brother, Glenn, and the rest of the Guist family."
Glenn Guist, his brother, is also on "Swamp People." But as I mentioned, very, very popular show, Carol. A lot of fans -- sad, sad loss this morning.
COSTELLO: A.J. Hammer, thanks.
A teenage fisherman says he spent four weeks at sea and a cruise ship passed him and his friends by as they signaled frantically for help. One of his friends died and now he's suing the cruise line.
(COMMERCIAL BREAK)
COSTELLO: Forty-five minutes past the hour. Checking our "Top Stories" now.
We begin in Mississippi where police are looking for a killer who may be posing as a cop. Two people have been found dead in the last week both on desolate stretches of highway. Investigators say they may have been pulled over thinking they were not in any danger.
John Edwards' oldest daughter may take the stand as early as today in her father's corruption trial. Yesterday the judge limited most of its testimony from one of the defense's expert witnesses. And the chief financial officer for Edwards' 2008 presidential candidate testified Edwards had nothing to do with reports filed with the Federal Elections Commission.
In Arizona, crews this morning are trying to make headway against five wildfires that have burned nearly 6,000 acres. Little relief is expected today. Temperatures could reach 106 degrees. So far no homes have been lost but some areas have been evacuated.
A Panamanian teenager adrift at sea for 28 days is now suing Princess Cruise Lines. Three passengers on the Star Princess saw Adrian Vasquez and his two friends and say they alerted the crew that the boys were in danger. But the cruise ship kept going.
Vasquez's friends did not make it. They set off from Panama on February 24th. Vasquez was rescued north of the Galapagos Island a month later about 600 miles away.
Brian Todd talked to the cruise line passengers.
(BEGIN VIDEO CLIP)
BRIAN TODD, CNN CORRESPONDENT (voice-over): This is what the passengers saw. A disabled fishing boat adrift in the Pacific Ocean. The passengers were on board the Star Princess, a massive cruise liner that had come within sight of the boat. One of the passengers who spotted it, Judy Meredith, described what a man on the stranded boat was doing.
JUDY MEREDITH, CRUISE SHIP PASSENGER: You could see him doing this with his shirt. Over and over and over.
TODD: Meredith and at least one other passenger Jeff Gilligan who took this photo said they immediately notified a crew member on Star Princess Cruise ship. They say that crew member visually confirmed the distressed boat on his own but the cruise ship never stopped.
JEFF GILLIGAN, CRUISE SHIP PASSENGER: While we are on the ship the feeling of powerlessness because we would have liked to somehow gone over there and rescued them.
TODD: The three people on that disabled boat were growing more desperate by the moment. One of them, Adrian Vasquez is suing Princess Cruise for neglect. He spoke with the Web site Panama Guide.
ADRIAN VASQUEZ, RESCUED BOATER (through translator): It was a really big boat. It was white and had the name in red.
TODD (on camera): Vasquez was on the disabled fishing boat with two companions. His complaint against Princess Cruise lines says after they were spotted by the cruise ship passengers on March 10 one of his companions a 16 year-old having lost all hope died that very same day.
The complaint says the other companion died five days later. Vasquez who would set off from Panama on February 24th was rescued by another fishing boat near the Galapagos Islands after having been adrift for nearly a month.
(voice-over): His lawyers say Vazquez survived by drinking rain water and eating rotting fish. Contacted by CNN Princess Cruises issued a statement saying it suspects this was a case of unfortunate miscommunication that after the crew member was alerted by passengers, regretfully the captain of the Star Princess was never notified of the passenger's concern. And if he had been, he would have had the opportunity to respond.
I spoke with an attorney for Vazquez. The Princess Cruise Lines statement says the captain was never notified. What does that mean as far as you're concerned?
ROBERT DICKMAN, ATTORNEY FOR RESCUED BOATER: Well, the fact that the captain wasn't notified is an admission of gross negligence on their part. The captain should have been told whatever any crew member was told about this distressed vessel. There's a rule in admiralty you must go up your chain of command.
TODD: Robert Dickman says he believes one reason the cruise ship didn't stop could be because it was scheduled to make a port of call in Punta Reno's Costa Rica the next day on March 11th. And he says if the ship had stopped to help, and maybe missed that scheduled docking, it would have lost a lot of money in concessions. A spokeswoman for Princess Cruises says that assertion is absolutely false.
Brian Todd, CNN, Washington.
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COSTELLO: Still ahead, your chance to "Talk Back" on one of the big stories of the day. The question for you this morning, "Who is to blame for the JPMorgan Chase banking fiasco? I'll read your responses after a break.
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COSTELLO: We asked you to "Talk Back" on one of the big stories of the day. The question for you this morning, "Who is to blame for the JPMorgan Chase banking fiasco?"
This from Butch. "We are to blame for the JPMorgan Chase fiasco. Everyone knew the way they handled investments and yet they flock to invest -- and yet they flock to invest with JPMorgan. When are people going to learn? We deserve what we get."
This from Earl, "Just because there are not rules and regulations to stop someone from doing something doesn't make the rule regulators the one at fault. The people at JPMorgan that approved the transactions are to blame. Put the blame where the blame belongs."
This from Gary, "Greedy wealthy bankers are to blame. No matter how rich they are, it's never rich enough and they're sure that we'll bail them out again." And this from Mark, "The Representatives in Congress are to blame. This is the reason I don't have a 401(k). I got sick and tired of Wall Street stealing my money."
Keep the conversation going. Facebook.com/CarolCNN.
It was not a peaceful of night for Metta World Peace. Jeff Fischel is here. Well at least he's back.
JEFF FISCHEL, ANCHOR, HLN SPORTS: He's back and so are the bitter feelings between the Lakers and the Oklahoma City Thunder. Last night they met for the first time since Metta World Peace gave that elbow to James Hardin and giving Hardin the concussion and leading to suspension for the Lakers' forward. This is what he heard last night in game one of their series. Lots of boos.
It was the series opener. The Oklahoma City fans thundered World Peace with boos. The home fans also have plenty to cheer about Kevin Durant and Russell Westbrook combined to score 52 points. This game got ugly for the Lakers they fell behind by 35, the final 119-90. The Thunder beat the Lakers in game one.
More playoff hoops, Sixers guard Evan Turner, watch this hoop late against the Celtics. Oh, it's a great shot. That puts the Sixers ahead to stay. Philly ice it is with free throws in the final seconds. The final, 82-81, that series is tied a game apiece. Game three tomorrow in Philadelphia.
Stanley Cup playoffs, New Jersey Devils, New York Rangers, a great rivalry. Devils go to Martin Brodeur. The save of the game. Watch the slap shot and then the open net, no. Great stop, stopping Mark Stall. Brodeur fantastic but not as good as Rangers Goalie Henrik Lundquist. Actually outplaying Brodeur, Lundquist shuts out the Rangers. New York wins game one 3-0.
19-year-old Bryce Harper has been turning heads his first month in the majors. The Washington Nationals outfielder hit his first Major League homerun last night against San Diego. Harper didn't just trot around the bases, he ran. And then after getting the ok from teammates he did take the curtain call. The Nats won the game 8-5.
Many baseball players make millions and then there's Justin Sellers. The Dodgers utility man earning it every day just trying to keep his place on the team. I'd say he earned some security with this catch into the stands. The Dodgers beat the D-Backs 3 to 1. L.A. has won five straight and Dodgers have the best record in baseball.
COSTELLO: That's impressive.
FISCHEL: And it's a great catch.
COSTELLO: I know. I love those kind of catches.
FISCHEL: Earlier in the game also the Dodgers game, a fan tried to do the same thing. Didn't work out so well, big spill. That's why you leave it to the pros. COSTELLO: That's true. Always good advice.
FISCHEL: I'll pay money he wants. Eat my dog, get my beer.
COSTELLO: Yes. Jeff Fischel thank you.
F1: Ok.
COSTELLO: Coming up in the next hour of CNN NEWSROOM. Senator Kay Bailey Hutchison is announcing today that she will support Mitt Romney for president. We'll talk to her about that and why she is questioning the Obama administration for its war on women.
Also (inaudible), the girl scouts are known for selling cookies and teaching life skills, but there are reports Catholic bishops are now reviewing the organization. We'll ask the president of the Catholic League why some bishops could have a problem with the girl scouts.
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COSTELLO: And good morning to you. I'm Carol Costello.
Just ahead in the NEWSROOM. Two people gunned down on Mississippi highways. Police think someone is posing as a cop and then pulling the trigger. We've got the latest on the manhunt for a killer.
Girl scout cookies, life lessons, and abortion? Some Catholic bishops are reportedly investigating the girl scouts after reports of ties with Planned Parenthood. The president of the Catholic League talks with us live about the controversy.
Going through security at the airport can be a hassle, but it's meant to keep passengers safe. But travelers might not be so understanding if they found out about half of all security breaches caught by TSA workers are not reported to top officials.
Plus, one columnist's view on President Obama. Why he's now calling him the first female president.
And don't look now but a new poll shows Mitt Romney is getting more popular with women voters. And today he's picked up an important endorsement from someone who could help him win over even more women. We're talking to her live.
