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Suspect Arrested in Highway Murders; JPMorgan's $2 Billion Mess; Investors Ready to Friend Facebook; Police Hunt Georgia School Bus Sniper; Facebook Ringing NASDAQ Opening Bell; I'll Flip you For it; A Different Kind of Hybrid
Aired May 18, 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 Baldwin. And good morning to all of you. I'm Carol Costello. Stories we're watching right now in the NEWSROOM.
Mass chaos in Kentucky. Take a look at this. Neighbors screaming, running for cover. Police race with guns drawn. The takedown of a shooter. How an argument went so wrong and the video of what happened after.
You've got to like history in the making. The Facebook frenzy is about to become one of America's largest public companies and Mark Zuckerberger will become -- Marc Zuckerberg. I'm so excited about it, I can't say his name. Anyway, he'll become one of the richest men in the world.
Would you want to leave the results of an election up to a coin toss? Doesn't sound like a viable option, does it? But it turns out it is. We'll take you down to Texas. A flick of the wrist will decide an election there.
It may look like your grandfather's 1960s rocket but it ain't. An insider's look at the Space X, the next frontier at intergalactic travel.
Are you ready to friend Facebook? In the next hour investors will get their first chance to buy a piece of the social media empire. It's the most talked about initial public offering in years.
Alison Kosik is at the Nasdaq market site where the buzz is building.
Hi, Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Carol. So, yes, consider this the Super Bowl of market events. Facebook going to be opening up its shares to the public for the public to buy today. In the next couple of hours. But you know there's been a lot of hype with this. And the question is, will Facebook live up to the hype?
I'm going to go ahead and talk about all this in a little bit with you.
COSTELLO: Yes, I can't wait. Thank you, Alison.
We want to get right to this big break in Mississippi, though. Police have now arrested a suspect in the killing of two motorists both alongside desolate stretches of highway. The case stirred public fear and distrust after authorities warned that the shooter could be posing as a cop.
CNN's Ed Lavandera is in Dallas.
So, Ed, what was the key break in the investigation and who's the suspect?
ED LAVANDERA, CNN CORRESPONDENT: Well, according to Mississippi authorities, Tuesday authorities in the town of Tunica, Mississippi, which is in that northwest corner of Mississippi south of Memphis, Tennessee, get a call of a disturbance in an apartment. When they get there, they find a woman who is alleging she's been raped by a 28- year-old man by the name of James Willie.
As investigators are handling that scene and handling that situation, they come across what they say is his .9 millimeter handgun and then they start doing ballistics testing on that handgun and it connects that gun to two deadly shootings along highways in that northwest corner of Mississippi that we've been talking about for several days that happened last week.
Authorities say that handgun has been connected to that. They have arrested James Willie and they say that they will file murder charges against him in connection with those deadly shootings in northwest Mississippi last week.
COSTELLO: So what do we know about this guy?
LAVANDERA: You know, we don't know much at this point. Remember early on in a lot of what raised fear for many people is that police and investigators had thrown out the -- the possibility, they said they didn't know this for sure but the possibility that perhaps whoever the culprit was might be acting as a police officer. Remember the two people were killed were gunned down kind of in the early morning hours. They were trying to figure out why they would have stopped or been able to be confronted by a shooter in those early hours.
So they had the possibility that perhaps this person was acting as a police officer pulling up behind them. Authorities now tell us that they do not believe that is what happened in this situation. But in terms of motive and exactly how this person they believe pulled off these murders isn't clear at this point or at least they're not sharing.
Authorities there in Mississippi are supposed to hold a press conference with perhaps more details about what they've been able to learn in their talks with James Willie, might be shared at that point. That's expected in the next few hours.
COSTELLO: Ed Lavandera, thanks so much. People run for their lives when shots ring out in a Louisville neighborhood. Listen to this.
You don't see video like that often. This happened right in front of police while they were investigating another crime scene. Earlier two men were shot and killed, two went to the hospital and afterwards police showed up. A big crowd gathered. Two women get into this argument and one allegedly shot and killed the other. Police eventually arrested her. The mayor of Louisville announced there will be extra police patrolling the area for weeks.
Also this morning, we have a clear image of the moments just before and just after the killing of Trayvon Martin. Here's a quick check of some of the evidence released by investigators. These are the last known images of Trayvon Martin, the 17-year-old. There you see him inside a convenience store. He's wearing the hoodie and buying Skittles and iced tea and of course those things would become icons in future protests.
We also now know that the teenager had marijuana residue in his system at the time.
Fast forward to the minutes after the killing. These police photos show the injuries to the shooter, George Zimmerman. Investigators note an apparently broken nose and cuts to the back of his head. Zimmerman said he fired in self-defense during a life-and- death struggle with the teenager and we're now hearing the investigators conversation with Zimmerman's father. He says audio recordings of the 911 calls captured his son's panic screams for someone to come to his aid.
(BEGIN VIDEO CLIP)
ROBERT ZIMMERMAN, GEORGE ZIMMERMAN'S FATHER: The 911 and the other tapes were played for the Martin family and they identified that as their son crying for help. That is absolutely, positively George Zimmerman. Myself, my wife, family members and friends know that that is George Zimmerman. There is no doubt who's yelling for help.
(END VIDEO CLIP)
COSTELLO: Just two weeks after the killing police detectives concluded Martin's death was ultimately avoidable if only Zimmerman had stayed in his car as 911 dispatchers had requested. Zimmerman, as you know, is now charged with second-degree murder.
A $2 billion trading loss tarnishes the reputation of one of Wall Street's brightest stars and today "The Wall Street Journal" is reporting that JPMorgan Chase CEO Jamie Dimon is the person responsible for putting his firm in harm's way. Approving a trading practice that opened the door to massive losses that the journalists now reporting could hit $5 billion.
CNN's legal contributor Paul Callan is with me now.
So, I'm sure you've read "The Wall Street Journal" article. Does this change things at all? I mean Jamie Dimon -- with shareholders? They sort of seemingly absolved him. He has his $23 million a year salary and no punishment. But should he be punished?
PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, as you said, he has been the darling really superstar of Wall Street through the entire financial meltdown. He survived and JPMorgan Chase was considered to be one of the strongest financial institutions to come out of the financial crisis. And now this "Wall Street Journal" article is really sort of devastating in implicating him directly with knowledge of the trade that was involved.
Now what we don't know is whether he acted improperly in the aftermath of realizing that it was a bad trade. Obviously trading judgments are made, investment judgments are made by banks and sometimes you get it right, sometimes you get it wrong.
And as large as this is, even if it goes to $5 billion, it's a relatively minor amount with respect to JPMorgan Chase --
COSTELLO: Yes, but here's the thing, Paul.
CALLAN: -- is a huge financial institution.
COSTELLO: An executive did pay the price for this. I mean the woman who, I guess, instituted the trade. She's been fired. But now we find out from this "Wall Street Journal" article that Jamie Dimon OK'd this kind of trade. He's going to be testifying before a Senate committee soon. So what will lawmakers -- what kinds of questions will lawmakers ask of him now?
CALLAN: Well, he's really going to be called on the carpet because there are two things going on here. One, of course, he's going to be wondering whether he's still going to have a job. So anything he says to Congress will have a bearing on that. Also, last week the FBI in a very unusual announcement said that it was commencing a criminal investigation of JPMorgan Chase.
Now I have to tell you, Carol, I said it's very unusual because normally the FBI lays back until this thing plays out. It might be a civil suit. A shareholder suit if shareholders lose -- will lose money but to say that you're starting a criminal investigation so early is very, very unusual. So anything that he says to Congress would have a bearing on both civil lawsuits and a criminal investigation. So he's going to have a very, very important day before a congressional committee.
COSTELLO: So this is far from over. Paul Callan, many thanks to you this morning.
CALLAN: Nice being with you, Carol.
COSTELLO: Nice to have you here, Paul.
Now let's get back to the wild morning that's building on Wall Street. Investors are bracing for their first chance to buy stock in the Facebook phenomenon and people are putting their money where their mouse is. The set price this morning 38 bucks a share.
CNN's Christine Romans is in New York to set the stage.
So, Christine, give us some perspective. Just how big is this?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's a really big IPO, no question about it. In the end it's going to rank second or third in size of all IPOs. I mean they'll probably going to raise around $18.4 billion when it's all said and done, and that's going to value the company well over $100 billion.
I want you to take a look at the other big ones we've seen. Visa was a very big IPO as well, $19.7 billion raised there. You've heard of Visa. Used it for years, right? But it didn't become a public company until March of 2008. Its stock price on the first day was $44 a share.
GM, another very public name. Remember had to go through bankruptcy? When it came back, it came back with $18 billions raised, $33 a share. That was back in November of 2010. But it's really best to compare Facebook, I think, overall with the other companies in its space. Google for example is one of these companies that a lot of small investors are saying, look, say I wish I got in on Google very early. That stock is up 500 percent or something since it went public. Even more than that. They raised almost $2 billion in 2004.
Microsoft, look at how Bill Gates glasses all the way back in 1986, Carol. $21 a share, $61 million raised for that one. And Apple, I mean that's been a public company since 1980. It raised $100 million when it went public at a stock price of $22 a share.
So the interesting thing about this particular IPO as well is it's going to value -- Facebook is going to be valued as a much bigger company on its first day as a public company than a lot of those other tech companies that then grew into their -- grew into themselves if you will. So one -- that's one of the reasons why some people say that it feels a little bubbly to them but don't tell them to all of the oversubscribed investors, Carol, who are willing to pay whatever it takes to get a piece of the action today.
COSTELLO: It feels a little bubbly? So like a common Joe can't buy stock quite yet. But I got a question for you down the line, Christine.
ROMANS: Yes.
COSTELLO: And what everyone wants to know, is it worth buying or should you just wait?
ROMANS: Well, look, Ryan Mack from Optimum Capital Management and a dozen other people who I talk to and quote, they say for you and me, Carol, for regular people, just wait. He says, Ryan Mack says wait a month and just see how this thing settles out here.
Just for journalistic purposes, I've been on the phone three different times this morning with e-Trade after having tried to place just a little tiny order. Won't even let you go in and place an order on there. So in the role of individual investors, I can't get an agent on the phone. So, you know, it might be -- you might not be able to get it at all today. Just my advice is wait.
COSTELLO: OK. I will take it. Not that I can --
ROMANS: Good.
COSTELLO: -- really do anything but I will take it.
(LAUGHTER)
COSTELLO: Christine Romans, thanks so much.
ROMANS: No choice but to wait, Carol Costello.
COSTELLO: I know.
Stay with us for in-depth coverage at the bottom of the hour. We'll take you live to Wall Street for the Opening Bell and then a few minutes later a look at a Facebook mom. She's the company's chief operating officer. Of course we'll keep a close eye on the markets as the big moment approaches. That's expected around 11:00 Eastern and you will see it live right here on CNN.
A man fires a gun at a school bus. That guy. And now parents in one Georgia community want to know how to keep their children safe. We'll take you to that neighborhood live.
(COMMERCIAL BREAK)
COSTELLO: It is 15 minutes past the hour. Time to check our top stories.
All investors' eyes are on Facebook as it goes public. Will they like it after day one of trading on the NASDAQ? The social networking giant priced as IPO at 38 bucks a share which values the company at roughly $104 billion.
John Edwards' fate now lies in the hands of 12 people, the jury in Greensboro, North Carolina, deliberating this morning. Edwards, as you know, was not called to the stand nor was the other star witness, his mistress, Rielle Hunter. Edwards is accused of using campaign contributions to hide his affair with her. If convicted, Edwards faces 30 years in prison.
Check out this video out of Portland. An aerial crew was covering this condo fire when a firefighter falls through the roof. You're going to see it momentarily. We're hearing -- just scary. We're hearing though that the firefighter is doing just fine this morning. Two other firefighters suffered minor injuries.
And in Atlanta, police are continuing their search for the man who took aim at a school bus this week terrifying students and parents and prompting officials to escort buses through a local subdivision.
George Howell is in Hampton, Georgia, where this all happened.
And, George, you talked to parents this morning. What are they telling you?
GEORGE HOWELL, CNN CORRESPONDENT: Carol, good morning.
Parents obviously are getting some relief this morning and again this is the last day of school here in the Clayton County school district. Getting some relief knowing this is happening. You see police set up here in the neighborhood. That is giving some relief.
And all morning we saw a very heavy police presence. We saw patrol cars escorting buses throughout the neighborhood, and even saw a helicopter in the air. And, Carol, even seemed like there were more police patrols on the streets than people driving this morning. So, that is giving people some relief.
But all of this again is a result of what happened, what people saw on Monday. Two witnesses say that they saw someone who was on the ground pointing a rifle at a school bus. One of those witnesses yelled at the suspect. The person took off. Another witness chased him.
We confirmed with police that the suspect pulled a handgun and fired one shot that missed. Again, this situation creating a great deal of concern in this community here in Hampton. I spoke to a few people this morning who again say they are happy to see police on the job on this.
Take a listen.
(BEGIN VIDEO CLIP)
ANJANNETTE GRIGLEY, PARENT: It's a sad situation because it's the last week of school and the kids have been exposed to this. I feel sorry that someone would do that to innocent children. Don't know what the intentions were but just feel sorry.
HOWELL: As a parent just to know this was reported in this neighborhood, in your neighborhood -- I mean, what goes through your mind?
GRIGLEY: Scared. Nothing like this has ever happened before. A little nervous. I have two kids in the Clayton County school system. Just a little nervous and scared.
(END VIDEO CLIP)
HOWELL: It's also important to point out that when this suspect, when he took off, he dropped the rifle. Police recovered the rifle. Also dropped a notebook or some notes that had bus routes, bus numbers on it.
Police obviously are looking into that. They believe that the suspect is between 18 and 23 years old and they don't have a clear description yet to put out but they are looking for any information for someone who may know who this person could be, Carol.
COSTELLO: George Howell reporting live from Clayton County, Georgia -- thanks so much.
Mitt Romney's trek along the campaign trail is taking him to the 2012 version of the bridge to nowhere. I'll explain what it is and why Romney is going there.
(COMMERCIAL BREAK)
COSTELLO: Mitt Romney's campaign released the first campaign ad of the general election season. And it's not an attack ad.
(BEGIN VIDEO CLIP, FROM YOUTUBE/MITT ROMNEY)
NARRATOR: What would a Romney presidency be like?
Day one: President Romney immediately approves the Keystone Pipeline, creating thousands of jobs --
(END VIDEO CLIP)
COSTELLO: OK. So, you get a taste of that.
Also today, Mitt Romney has found his bridge to nowhere. It's not in Alaska but in New Hampshire. Romney will be campaigning in Hillsboro today near the Sawyer Bridge. It's an historic bridge originally built in the 1800s and now restored to its former glory.
The thing is the bridge leads to nowhere. It's not open to traffic. It's now part of a city park. You guessed it, the bridge was restored with $150,000 in federal stimulus money -- something Romney will no doubt say was a waste of taxpayer money.
Now is your chance to talk back on one of the big stories of the day. The question for you this morning, if you could change something about Facebook, what would it be? We love Facebook because it gives us direct access to you, something we never had in a past. Now, I can have a conversation with you in real time.
Still, we all wonder what Facebook's initial public offering will mean. Now, Mark Zuckerberg will have to answer not just to himself but to shareholders. Facebook is expected to haul in $16 billion when it sells its stock today.
So, if you're kicking yourself because you can't buy in, look on the bright side.
(BEGIN VIDEO CLIP)
JIMMY FALLON, COMEDIAN: Some business news. This week, investors will be able to buy shares of Facebook stock if the first time ever. Now it's great. You can lose all your money in the same place you lost all your time.
(END VIDEO CLIP)
COSTELLO: Well, not everybody.
On "The View," President Obama says his daughters don't while away their day on Facebook.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: First of all, Malia didn't get a known until last year. So, Sasha still doesn't have a known.
UNIDENTIFIED FEMALE: How old is Malia?
OBAMA: Malia is 13. She'll be 14 in July.
They don't have a Facebook page. Part of that obviously is for security. We don't let them watch TV or use their computer except to do homework during the week.
(END VIDEO CLIP)
COSTELLO: A recent Western Illinois University study suggests that Facebook feeds our inner narcissism. The more Facebook friends you have, the more you're into yourself. Whatever.
Seriously. Many people value Facebook and are wondering whether this IPO will change Facebook for the better?
So, the talkback question for you, if you would change something about Facebook, what would it be? Facebook.com/CarolCNN. I'll read your comments later this hour.
You could say Mark Zuckerberg is the face of Facebook. He can't take all of the credit for its success. Meet the right-hand woman, a 42-year-old mom and COO. That's next.
(COMMERCIAL BREAK)
COSTELLO: OK. We're moments away from the opening bell. Guess who is ringing it today? It would be Mark Zuckerberg.
Actually, he's doing it remotely. He's in Menlo Park, California. He has a button there. It will ring.
It's exciting! Ring the bell.
OK. We're still a minute away. He has this remote button in Menlo Park, California. He will press the button and it will ring on Wall Street at the New York Stock Exchange starting the trading day on Wall Street.
Let's check in with Alison Kosik. She's on the floor of the New York Stock Exchange -- Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Actually, I'm going to go out of my way here --
COSTELLO: She's outside.
KOSIK: So everyone knows, we're at the NASDAQ. This is where the Facebook is listed. So, this is actually where he's remotely ringing the bell.
So, yes, you see all of the excitement. Wouldn't you be excited too? You're going to be double the billionaire you were yesterday. So, that's what you're seeing there in California where Facebook is headquartered remotely ringing a bell for the NASDAQ.
This is the day that Facebook shares will be sold to the public. Keep in mind although he's ringing the bell at 9:30 now, it does take time for these newly listed shares to begin trading when they make their public debut.
One NASDAQ official telling me today that when the bill rings, there's a lot of noise, all these stocks come out of the gate and start trading. And when there's a new IPO, what likes to happen a lot of attention, like to be placed on the new IPO de jure and today, that is Facebook -- Carol.
COSTELLO: I'm still waiting. They just did it. We missed it.
KOSIK: Just know that it's more ceremonial than anything, and you can see mark Zuckerberg's face. Doesn't he look happy today?
COSTELLO: He does. He's a rich guy. He should look really happy. Or he's going to be a richer guy, I should say.
KOSIK: So, shares by the way are priced at $38. But for the average investor, yes, good luck getting that price, because when shares actually begin being traded in about an hour, hour and a half tops, you can get that price most likely is going to go higher because for this IPO, a lot of these institutional investors and underwriters took a lot of preorders so the stock actually will begin being traded at that IPO price for those who got in early, Carol.
COSTELLO: OK. We'll keep checking back with you at the NASDAQ.
KOSIK: OK.
COSTELLO: Not at the New York Stock Exchange. Thank you, Alison.
Facebook wouldn't be what it is today if not for a very inspiring 42-year-old mom. The company's COO. Think about it. When Facebook first came out, she probably couldn't join because it was just for college kids. She's in it now.
Here's Poppy Harlow.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM: You know the story. Mark Zuckerberg started Facebook in his Harvard dorm room. But do you know Sheryl Sandberg? She's his right-hand woman, and people say Facebook wouldn't be where it is today without her.
SHERYL SANDBERG, FACEBOOK COO: Really serious geek in high school. It works out.
HARLOW (voice-over): Sheryl Sandberg, Facebook's chief operating officer, number two to founder, Mark Zuckerberg. She joined Facebook in 2008, taking it from less than 150 million users to more than 900 million today.
DAVID KIRKPATRICK, AUTHOR, "FACEBOOK EFFECT": If Sheryl hadn't been there, I don't think Facebook will be going public today so successfully. She came in and basically created the business. She had a whole month's worth of meetings trying to figure out what business Facebook was even in.
HARLOW: A Harvard grad who worked as Larry Summers chief of staff at the U.S. Treasury Department, she landed next at Google where she built the company's ad business.
TIM ARMSTRONG, AOL CEO: I think Sheryl's, you know, main contribution was actually figuring out how to go from essentially zero customers in the new channel to figure out how we were going to get billions of dollars and a million customers. And she built that from scratch.
HARLOW: She's so important to Facebook, the company's public filing document say losing her could harm the company. I interviewed her the day Facebook became profitable.
SHERYL SANDBERG, CHIEF OPERATING OFFICER, FACEBOOK: The big announcement today is that we hit 300 million active users, and we're cash flow positive.
HARLOW: As a female who has reached close to the top of the corporate ladder, she challenged young woman to do the same, during her 2011 commencement speech at Barnard.
SANDBERG: You are the promise for a more equal world. A world where men ran half our homes and women ran half our institutions would be just a much better world.
HARLOW: And for this mother of two, balance is key.
SANDBERG: I walk out of this office every day at 5:30, so I'm home for dinner with my kids at 6:00.
HARLOW: Has she changed the culture of Facebook, do you think?
CLARA SHIH, CEO HEARSAY SOCIAL, SANDBERG FRIEND: Oh, absolutely. I say that her influence has gone far beyond just Facebook. I think she's established a new way of doing things, a new culture that aspire to across all type of technology company.
HARLOW: So, she's changed Silicon Valley?
SHIH: Absolutely. And if you look at Oracle or you look at Apple, a lot of these companies have a single leader. Usually, it's always been a guy who has a singular vision. We're seeing a shift from ego-driven to leadership-driven.
HARLOW: People who know her say Washington could be in the cards.
ARMSTRONG: I told her she should run for president.
KIRKPATRICK: I think Sheryl will end up in Washington and I honestly think she could some day be president and that's not a joke.
REPORTER: Do you have political aspirations?
SANDBERG: I have aspirations to do something that matters. And right now, I don't think there's much I could do that would matter more than Facebook.
(END VIDEOTAPE)
COSTELLO: See? She's already a politician.
Poppy Harlow is live in New York.
(LAUGHTER)
COSTELLO: So, Poppy, I was just wondering what challenges lie ahead for her now that Facebook has gone public.
HARLOW: It's a great question. Everyone speaks so glowingly about her and she's been hugely successful. The challenge is going to be -- this a public company. They're going to have to now respond to Wall Street's call for higher earnings quarter after quarter, and Facebook's challenge is how do you monetize all of the people that are moving to mobile?
They disclosed this in public filing documents a week ago, saying that their ads are not keeping up with the amount of people that are moving to Facebook on mobile devices, moving away from the desk top.
Ultimately, it is still Mark Zuckerberg that controls the company. He's got over 50 percent of voting shares, Carol. So, it's his call but he listens to her closely. You cannot overstate her importance in today's IPO, bringing Facebook to where it is.
And if anyone can figure out how to monetize mobile, it is her. She's the one who built Google's ad business. It's important when you look at Facebook and you think of Mark Zuckerberg, think about the woman sitting right next to him.
COSTELLO: I shall. Poppy Harlow live in New York for us this morning.
Some other stories we're watching right now in the NEWSROOM:
Police in Mississippi arrest a suspect in the killing of two motorists on remote stretches of highway. Police say when they picked up James Willie on unrelated charge, they found handguns used in the killings. Authorities feared the killer was posing as a cop to pull over unsuspected drivers.
This morning, jurors return to a North Carolina courthouse and begin deliberating on the corruption case of John Edwards. Former presidential candidate is accused illegally funneling campaign money to his mistress, the mother of his child. He could face up to 30 years in prison.
President Obama heads to Camp David today where he will meet with other world leaders for the G-8 summit. Among the topics: nuclear tensions with Iran and North Korea and deepening economic concerns. Leaders are also expected to debate tapping global oil reserves to push down prices at least temporarily.
Sacha Baron Cohen's movie is causing controversy.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Admiral General, welcome to New York City. And while you're here, I highly recommend a visit to the Empire State Building, before you or one of your cousins take it down.
(END VIDEO CLIP)
COSTELLO: Cohen calls it a comedy. Some call the dictator offensive.
(COMMERCIAL BREAK)
COSTELLO: Sacha Caron Cohen's new role is Admiral General Aladin in "The Dictator," stirring up quite a bit of controversy, the plot to prevent democracy and promote oppression in a fictional north African country.
Have you seen the movie? If you haven't, take a look.
(BEGIN VIDEO CLIP)
COHEN: America, the birth place of AIDS.
I am for free press, fair elections and equal rights for women -- I can't say that.
(END VIDEO CLIP)
COSTELLO: OK. So the director and co-writer Larry Charles is out promoting "The Dictator" and he's also defending the movie. He's also directed two other Sacha Baron Cohen movies, "Borat" and "Bruno".
(BEGIN VIDEO CLIP)
LARRY CHARLES, DIRECTOR AND CO-WRITER, "THE DICTATOR": We're always looking for another level. We want movies to be dense, so that you can laugh on this level at the silliness but under the surface there's something being said, there's a theme that's being developed that's kind of an important one, and even a serious one that we're trying to find humor in.
So, even though people will be offended, that's inevitable. You never know what people are going to be offended by or aren't, you know? So, you can't really let that stop you.
(END VIDEO CLIP)
COSTELLO: Of course, not everyone is laughing. Arab organizations are offended by the stereotype portrayed by Cohen's character.
Cofounder of the Arab-American Comedy Festival, Dean Obeidallah, has one simple request for Hollywood. And he's here now to tell us what it is.
Hey, Dean. What is it?
DEAN OBEIDALLAH, ARAB-AMERICAN COMEDY FESTIVAL: Here's my point. I want to point out I'm not offended about I this movie. I'm a comedian. I offend people. I write political comments for CNN. I offend people every week.
The point is: you want to make a better product. You want to make a movie that's more nuance, less cliche and old caricatures. Have Arab Americans involved in the process. The movie would be better. Have them involved as co-star.
This is a rare movie where you have someone playing an Arab and Arab culture involved and there's no Arab Americans really in the movie anywhere, behind the camera, in front of the camera. That's kind of an odd thing. That's why I plead to Hollywood, let's make better movies and you can make more money.
COSTELLO: Why would it be better if Arabs played parts in the movie? This is a parody. He's trying to prove a point. Dictators are evil I guess.
OBEIDALLAH: Right. I have for problem with him playing an Arab character. I think our situation is unique in America. We've been through a great deal of challenges that other communities have not -- obviously, backlash from 9/11 continuing to today.
It's just a television show on TLC, "All American Muslim," people protested because no Arabs, no Muslims were playing terrorist in the TV show. That's the unique place we're in.
So, we understand media's power. It can humanize and it can dehumanize. If you have someone of this involved, you could have Sacha Baron Cohen, you need to start and open a movie, how about a co- star who's actually Arab? How about a co-writer who's actually Arab that brings nuance that makes people laugh about something they have not seen before?
I've seen the movie. It's not offensive.
COSTELLO: Why do you suppose Hollywood producers and directors, why aren't they hiring Arab actors?
OBEIDALLAH: Excellent point, Carol. That's exactly my point. That's why I wrote the article.
I mean, look, we're not the only one. Two weeks ago, I was on talking about Ashton Kutcher. He put on brown face and played an Indian guy and the Indian community objected.
Now, you have a person who's not Arab playing an Arab with brown face, same way. We have -- you know, in America you have to stand up for your rights. I think if we stand up enough, at some point, Hollywood will realize there are actually funny Arabs out there who are writers and actors who can help and make it a better product.
It will not be what you see now in "The Dictator," a better movie, a funnier movie. It gets laughs. It's not "Borat." It's horrible.
It's just not as funny as it could be. That's my point.
COSTELLO: Just be brutal and tell me the truth. Does it get a thumbs up or thumbs down?
OBEIDALLAH: Bruno, no, I didn't see Bruno. "The Dictator"? I give it thumb middle. Thumb down seems stereotypical like I say something down. In the middle.
COSTELLO: Dean, you wimped out on me.
OBEIDALLAH: What do you want me to say? Two thumbs up? I can do it with an Arabic accent. It's middle movie, you know?
If you want -- it's got some good laughs. It's not "Borat." I'm honestly telling you, it could have been better when I watch the movie.
We could add some Arab culture to it. We have no problem laughing at ourselves. I perform around the whole Middle East, and for Arab-Americans in the States, and they laugh at our culture. We have no problem with that.
But have us part of it. It will be more original and more authentic and audiences are sophisticated. They want that. They don't just silly slack stuff anymore. It's not going to sell.
And I don't think this movie would be a big hit. I think it will be medium.
COSTELLO: Yes, I haven't -- I really don't know anyone who has seen it.
Dean, thank you so much for being here with us. We appreciate it.
OBEIDALLAH: Thanks, Carol. Thanks for having me on.
COSTELLO: Two men, one city council seat. How will this election get decided? With this silver dollar.
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COSTELLO: In a little over four hours, a city council election in Wolfforth, Texas will be decided that's about 20 miles West of Lubbock. Only in this case there will not be a runoff. This election will be decided with a coin toss. Sounds simple enough, right? Not so much.
Brittany Price a Lubbock affiliate KJTV breaks down the final showdown.
(BEGIN VIDEO CLIP)
BRITTANY PRICE, KJTV: Heads or tails? The face of a coin may determine who will fill this empty seat on the Wolfforth City Council. It's a 50-50 chance for Bruce McNair or Bryan Studer.
BRYAN STUDER, WOLFFORTH CITY COUNCIL CANDIDATE: The city secretary texted that we are tied, that was my first and I text her back can we just flip a coin? More of a joke. Didn't know if we could really do that or not.
PRICE: It turns out they can.
BRUCE MACNAIR, WOLFFORTH CITY COUNCIL CANDIDATE: I didn't want to concede because that would just be giving up. And certainly spending taxpayer's money to do another election was ridiculous thought. So if the other option was to cast lots as they called it.
PRICE: Because of its small population, Wolfforth is a general law city and operates under state law instead of a city charter. But the flip of a coin isn't as simple as it seems.
DARRELL NEWSOM, WOLFFORTH CITY MANAGER: I'm trying to decide of how you flip. Who calls it, that type of thing, to make sure that everybody is going to be made happy at the end of this whole deal. It becomes a little bit more elaborate to keep it fair.
PRICE: Wolfforth city manager Darrell Newsom says the city's attorney has written up a three-page agreement detailing exactly how the toss will transpire.
NEWSOM: I will actually write heads and tails on equal size pieces of paper and will put them into a hat and then they'll both open them at the same time.
PRICE: And a regular quarter won't cut it.
NEWSOM: Then we'll actually use a dollar coin which is stipulated in the agreement and then we'll do it just like a football game. We'll flip it in the air and let it land on the ground and then determine whether it's heads or tails. (END VIDEO CLIP)
COSTELLO: That was Brittany Price reporting. "The Lubbock Avalanche Journal" is reporting the coin toss will happen around 1:30 Eastern Time.
Facebook's IPO goes public today meaning the public can buy the Web site's stock. So today's "Talk Back" question for you, if could you change something about Facebook, what would it be? I'll have your responses next.
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COSTELLO: We asked you to "Talk Back" on one of the big stories of the day. The "Talk Back" question for you if you could change something about Facebook what would it be?
This from Stephen, "Make Timeline an optional feature on some sites, especially those with lots of photographs. It's horrible under Timeline, give us a choice."
This from Tom, "I'd add a thumbs down/dislike button. It always feels weird when you acknowledge something unpleasant by liking it."
This from Walter, "I would change the right of Facebook designers to arbitrarily force operating changes from profiles without permission from the page owners."
This from Christian, "Add a Dislike button as well as Facebook not owning everything I upload."
This from Diana. "Make privacy settings more user friendly and get rid of Timeline."
That was the theme to your responses this morning. You hate Timeline. Maybe it'll change. We'll see.
We're following a lot of developments in the next hour of the CNN NEWSROOM. Let's check in first with Alison Kosik at the NASDAQ market site.
ALISON KOSIK, CNN CORRESPONDENT: Hi Carol. So yes consider this the Super Bowl of market events. Facebook begins selling its stock to the public literally within the hour. That is the expectation. I'll have the latest coming up.
ED LAVANDERA, CNN CORRESPONDENT: I'm Ed Lavandera in Dallas. I'll have the story of the arrest made in the mysterious and frightening highway shootings in northwest Mississippi.
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: I'm Dan Lothian at the White House. Two important summits this weekend. One at Camp David, the other in Chicago, world leaders gathering to tackle everything from the way forward in Afghanistan to the debt crisis in the Euro Zone. I'll have more on that in the next hour. COSTELLO: Also coming up, fired up and ready to go. Vice President Biden seems to be reaching back to a key slogan from President Obama's last campaign as he courts middle class voters. We'll take a closer look at Biden's role as attack dog.
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COSTELLO: A little round ball and a helping of bees. Time for the big play. Let's start with the NBA playoffs. Second round of the Eastern Conference. Lebron James and the Miami heat looking to take the series losing against the Indiana Pacers. However, the game wasn't even close with the Pacers outrebounding, outshooting and eventually outscoring the Heat. Final score, Pacers win 94-75 and take a 2-1 lead in the series.
To the Western Conference now. The Los Angeles Clippers were no match for the San Antonio Spurs who extended their 16-game winning streak. The 105-88 victory was icing on the cake for point guard Tony Parker who celebrated his 30th birthday leading the Spurs with 22 points in the game. San Antonio now up two games to none in the best of seven series.
And take a look at this -- bees, lots and lots of bees -- delaying a baseball game between the Arizona Diamondbacks and the Colorado Rockies. It happened during the fifth inning -- that's just scary. A swarm of bees flew down the first baseline and took over a camera well near the rookies -- near the Rockies dugout rather.
The game had to be stopped for about 10 minutes until a beekeeper arrived. It is amazing they could find that beekeeper as fast as they did. He arrived with a vacuum cleaner thing kind of thing. That's bizarre. The bees were cleared out and the game resumed.
Did you ever wish you had the option of avoiding rush hour? Head to the beach instead. We found a car that's also a boat with a need for speed and it could be yours for the right price.
Here is Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: It is a head turner on land, but heads really spin when you take it for a spin in water. Does it come with a guarantee that it won't sink?
UNIDENTIFIED MALE: No.
MOOS: It's called the Sea Lion and it's for sale to the right sort of buyer.
MARC WITT, CREATOR, MECHANICAL ENGINEER: You probably saw Chitty-Chitty-Chitty Bang-Bang as a child and he's into James Bond .
MOOS: Remember 007 submarine car with fins that popped out and a periscope that popped up. Though the Sea Lion doesn't fire missiles, its wheels do retract and a wing on the front goes up to deflect waves.
Mechanical engineer Marc Witt spent six years designing and building it using a Mazda rotary engine.
WITT: It's a true racing car.
MOOS: Its claim to fame as an amphibious vehicle is its speed on land. It's engineered to go as fast as 180 miles per hour. Though in water, an outfit named water car says --
UNIDENTIFIED MALE: World's fastest amphibious vehicles.
MOOS: A little over 60 miles per hour in the water.
UNIDENTIFIED MALE: What do you have to do to prepare this for the water? It's real hard. Drive her right in.
MOOS: Amphibious cars like the Gibbs Aquatic can easily pull a skier -- these are consumer vehicles, but the aluminum Sea Lion is purely a racer with its bubble hatch. Not a car to frolic around in the water.
It is not scary?
WITT: I have been scared in it, yes I have.
UNIDENTIFIED MALE: It's not a pleasure boat. It's an engineering experimentation vehicle.
MOOS: The question is, do you wear a seatbelt and a life jacket?
WITT: I have worn the life preserver and I brought an oar.
MOOS: Other amphibious makers promote their cars as chick magnets. The Sea Lion has been magnetic in its own way. Co-owner of Fantasy Junction, a dealer selling the racers says --
UNIDENTIFIED MALE: Interest has been overwhelming and global.
MOOS: The sticker raise a mere $259,500 -- that's $259,500. Marc Witt says he's never encountered fish out driving, though apparently "The Spy Who Loved Me" did.
