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Dimon Defend JPMorgan Chase's Losses; Zimmerman Wife Faces Perjury; Rhode Island May Relax Marijuana Laws; JPMorgan Chase CEO to Testify for Senate Committee; Lawmakers Avoid Saying "Climate Change"; Little Darth Vader to Have Heart Surgery; Oprah Grills Rapper over His Dog's Name
Aired June 13, 2012 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: We're moving on. All right. Tomorrow we're going to talk to Ice-T. Let's get right to "CNN NEWSROOM" with Carol Costello, it begins right now.
Hey, Carol, good morning.
CAROL COSTELLO, CNN ANCHOR: Hi, Soledad.
Happening right now in the NEWSROOM, an amazing story of survival. An 18-month-old thrown from an SUV during a police chase. That kid gets up and walks back toward the car.
Lying to a judge. The wife of George Zimmerman who claimed the couple had little money because she was a fulltime student and George wasn't working is now charged with perjury. We'll tell you the code words the couple used to communicate while he was in jail.
Dude, relax. Rhode Island set to become the 15th state to decriminalize marijuana. No big fines, no jailtime, nothing on your record. And other states are noticing. We'll talk with a state representative from Rhode Island about the growing nationwide movement.
Plus this.
Oh, you remember the kid who played Darth Vader in the Volkswagen ad. Well, this week, he goes in to open -- he goes in to have open heart surgery. Seven-year-old Max Paige. This hour, we'll hear from his parents as we all say may the force be with him.
NEWSROOM begins right now.
And good morning to you. I'm Carol Costello. Thank you so much for joining me. We begin this morning with one of the most respected men on Wall Street and his bank's jaw-dropping blunder. In 60 minutes, Jamie Dimon appears on Capitol Hill to say JPMorgan Chase's multibillion dollar loss is an isolated event.
But those risky investments are reviving the debate over toothless banking regulations and taxpayers could ultimately feel the bite.
Alison Kosik is at the New York Stock Exchange.
Good morning, Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Good morning, Carol. So it's a given that Wall Street is going to be closely watching Capitol Hill this morning as Jamie Dimon testifies. But you know what? This matters even if you're not a JPMorgan shareholder because it makes the case for more regulation in the banking industry, which could eventually trickle down to the average person.
Now part of what's at stake is Dimon's reputation, his standing, as one of the most trusted voices in the industry. He earned that distinction in 2008 when he and JPMorgan helped the U.S. government stabilize the financial system.
(BEGIN VIDEOTAPE)
JAMIE DIMON, CEO, JPMORGAN CHASE: In March of 2008, at the request of the U.S. government, we worked with regulators to prevent an uncontrolled collapse of Bear Stearns. In September of 2008, we're the only bank prepared to acquire the assets of Washington Mutual. Taken together, these two transactions saved nearly 40,000 jobs and prevented further market instability.
KOSIK (voice-over): JPMorgan became one of the biggest banks in the world and Dimon became the moat credible voices in a battered industry. At the same time Dimon led the fight against new reforms in Congress including the Volcker Rule which forbids banks from engaging in risky trading with their own money.
JPMorgan had been using that tactic known as proprietary trading with great success at its chief investment office in London. The unit quadrupled its profits from 2007 to 2011. But it ran into trouble earlier this year. A complex tangle of risky trades came undone. Dimon announced losses of at least $2 billion, probably much more.
DIMON: The new strategy was flawed. Complex. Poorly reviewed, poorly executed, and poorly monitored.
KOSIK: JPMorgan has lost almost $30 billion in market share since then. Chief investment officer Ina Drew announced her retirement and Dimon's reputation for strong risk management was tarnished. Additionally, the timing of the losses coinciding with the latest round of financial turmoil in Europe brought back bad memory, a warning that not enough has changed since 2008.
(END VIDEOTAPE)
KOSIK: And Dimon will be testifying before the Senate Banking Committee in about an hour. In his prepared testimony, he explains what happened and he apologizes. He says we will not make light of these losses, but they should be put into perspective. Meaning the firm can absorb these losses because you look at how JPMorgan did last year. It made $19 billion in profit.
He says the company feels terrible for losing shareholders' money, but no client, customer, or taxpayer money was impacted.
Carol, also, CNN is going to be having live coverage of his testimony beginning at 10:00 a.m. this morning.
COSTELLO: And I know you'll be watching. We'll check back with you.
KOSIK: I will.
COSTELLO: Alison Kosik at the New York Stock Exchange.
A police chase in Texas ends with the arrest of four teenagers, but that's not what caught our attention. No. It was the little girl who was tossed out of the car.
As you see, an 18-month-old is ejected from the getaway car as those teenagers tried to escape officials following a robbery. Amazingly, the child was hospitalized with nonlife threatening injuries. Four teenagers were charged with several offenses, including aggravated robbery and injury to a child.
We're going to hear more about what happened in the moments following the crash. We'll be talking with the Lubbock Police in just a few minutes.
Casey Anthony is breaking her silence. She says she, quote, "did not kill my daughter." Anthony was acquitted last summer in the death of 2-year-old Caylee and has stayed in seclusion ever since. Anthony called CNN's Piers Morgan, though. They spoke for about 10 minutes before his show last night.
On the show, Piers talked with one of her attorneys.
(BEGIN VIDEO CLIP)
MORGAN: She said, well, I mean, there's obviously several misconceptions. Obviously, I didn't kill my daughter. She said that very firmly. If anything, there's nothing in this world I've ever been more proud of. And there's no one I loved more than my daughter. She's my greatest accomplishment.
Clearly, a lot of people in America believe she killed her daughter, but I was struck by that was what she wanted to get over straightaway, loud and clear.
J. CHENEY MASON, CASEY ANTHONY'S ATTORNEY: And she said that to you without any prompting, without any rehearsal, without any lawyering whatsoever.
(END VIDEO CLIP)
COSTELLO: Anthony told Piers the public image of her is way off base. She says she doesn't drink now. And she's not selling herself to make a quick buck. Quote, "I'm not making gazillions of dollars at the hands of other people or trying to sell myself to anyone willing to throw a couple of dollars at me. The caricature of me that is out there, it couldn't be further from the truth."
At six minutes past the hour, here's what else is happening this morning. The suspect in a triple murder could appear in an Alabama courtroom soon. Twenty-two-year-old Desmonte Leonard turned himself in to U.S. Marshals last night. He is accused of gunning down several people at a weekend pool party near the campus of Auburn University. Two of the three people killed were former football players at the school.
A manhunt underway in and around the great Smokey Mountains National Park in Tennessee. Authorities say the man seen in the sketch you're about to see sexually assaulted and then stabbed a lone hiker. There it is. The 44-year-old woman somehow managed to make it to a road. She flagged down a motorist for help.
The park is increasing patrols and urging visitors to be on guard.
Today a third alleged victim is due to testify in the child rape trial of Jerry Sandusky. So-called victim number 5 will follow yesterday's disturbing testimony from a former graduate assistant at Penn State. Mike McQueary told jurors that in 2001 he was inside the football facilities and had no doubt he witnessed Sandusky raping a small boy. He said the image was so shocking it was more than his brain could handle.
Prosecutors say Sandusky sexually abused 10 boys over a 15-year period.
This morning, George Zimmerman's wife is out of jail and facing tough questions about the couple's finances. Shelley Zimmerman is charged with perjury for saying the couple did not have the money to pay for her husband's defense in the killing of Trayvon Martin. Prosecutors say Shelley Zimmerman was actually sitting on more than $120,000 raised online when she testified under oath by phone at Zimmerman's bond hearing.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: And you mentioned also in terms of the ability of your husband to make the bond amount that you all had no money. Is that correct?
SHELLEY ZIMMERMAN, GEORGE ZIMMERMAN'S WIFE: To my knowledge, that's correct.
UNIDENTIFIED MALE: OK. Were you aware of the Web site that Mr. Zimmerman or somebody on his behalf created?
ZIMMERMAN: I'm aware of that Web site.
UNIDENTIFIED MALE: And how much money is in that Web site right now or how much money as a result of that Web site was --
ZIMMERMAN: Currently, I do not know.
(END VIDEO CLIP)
COSTELLO: But prosecutors say that's a lie, hence the perjury charge. So let's bring in BJ Bernstein. She's a criminal defense attorney. She's handled a number of high-profile cases.
Welcome.
B.J. BERNSTEIN, CRIMINAL DEFENSE ATTORNEY: Something else, for someone who didn't want to be on TV, had special protection at that hearing, not to appear, and there we are, mugshot.
COSTELLO: Big old mugshot.
BERNSTEIN: We know who she is.
COSTELLO: She had no trouble posting the $1,000 bond to get out of jail.
BERNSTEIN: Right.
COSTELLO: Did that in a second. I mean -- I mean, how do you get -- how do you swear to tell the truth, the whole truth, and nothing but the truth, and then allegedly blatantly lie?
BERNSTEIN: It happens all the time. And what obviously one of the key pieces of evidence that the state is going to look at is the phone calls. And for everybody who doesn't know, when someone calls you collect from jail, any jail, those calls are recorded. And they keep them. And particularly with high-profile defendants like Zimmerman, you know that the state was listening to every word he said when he was locked up.
COSTELLO: And so these jailhouse conversations, prosecutors say that George Zimmerman actually used code words to communicate, you know, the transfer of money from one account to another. He even allegedly told his wife to pay off credit card bills like the American Express bill and the Sam's Club card.
BERNSTEIN: Yes. I mean, and these are the things that, you know, it creates interesting issues for Zimmerman and Zimmerman's attorney, who has publicly announced he has a legal conflict and cannot represent the wife, because now he's trying to still get bond and he's trying to save credibility for Zimmerman.
Remember that this judge who revoked this bond is the one who is going to decide whether the "Stand Your Ground" law is applicable and whether this case goes to trial. And so Zimmerman's credibility is at issue. And then someone who may have been a helpful witness is potentially damaged because his wife's been arrested not just lying but the law of perjury requires it -- requires it to be something material. Something important.
In other words, not just any little old fact. And that's something that hurts Zimmerman and could potentially hurt his wife.
COSTELLO: I was reading a bunch of articles online. There are already people coming out and saying that this is a -- this is a setup, that prosecutors set this whole thing up. And it isn't as bad as it looks.
You're an attorney. Is it as bad as it looks?
BERNSTEIN: It's not good as it looks right now. There would have to be a lot of explaining. It's interesting when you just did that replay of what she said, "to my knowledge." She is very measured words. That may be the only chance of some sort of defense that you have here, and also looking at where the money went. I have seen reports where money is moved from account out of the account into her account then moved back into the other fund.
And so those account movements and her cautionary words are going to be the only things that potentially protect her on this.
COSTELLO: So if she's convicted of perjury, what could happen?
BERNSTEIN: She could go to jail. But most likely, this is the kind of thing of it would affect her credibility at any trial. And makes her not a witness for Zimmerman that he can rely on, and he better look elsewhere for support and help in terms of his case.
And for the prosecution it's more fuel to the fire that they are right. And to the Crump -- lawyer Crump and the Trayvon Martin family, it does echo what they've been saying, which is there's lies going on, and that their son was murdered.
COSTELLO: BJ Bernstein, thanks so much for joining us this morning.
BERNSTEIN: Thank you.
COSTELLO: It's 223 years old, but it looks almost brand-new. And it can be yours for a couple of million bucks. I'm talking about a piece of American history. This is so cool. This includes the Constitution and a draft of the Bill of Rights all owned by none other than George Washington.
Next week, Christie's will auction the item which was printed specifically for Washington during his first year in office as president. Wow.
You can already smoke marijuana in 14 states without facing any real jailtime or large fine. And there's another state in the mix.
(COMMERCIAL BREAK)
COSTELLO: Fifteen minutes past the hour. Checking our top stories now:
In 45 minutes, lawmakers are expected to grill the top man at the nation's largest bank. Jamie Dimon will testify about JPMorgan Chase losing billions of dollars in risky investments. The losses have revived debate over the need for tougher banking. As you can see, he is walking into the House right now.
Let's just look at the live pictures for just a minute. As you can see, he is surrounded by reporters and is due to be grilled by lawmakers in just about 45 minutes.
As I said, this brings up the idea again of tougher banking regulations. I'm sure that will be -- that idea will be included in questions from lawmakers this morning.
Also this morning, one of Gabrielle Giffords' former aides is celebrating after winning a special election to Congress. Ron Barber will serve out the rest of Giffords' turn. Barber was wounded in last year's mass shooting that killed six people and left Giffords with a gunshot wound to the head. She officially resigned from Congress in February.
In Money, Verizon is unveiling its new share everything plan to allow you to spread data allotments across all of your devices, but Verizon is killing its voice minute plans. Bottom line, if you have multiple devices you'll save money. But if you only have a phone, you're probably going to pay more.
The fires in Colorado now 10 percent contained this morning. More than 43,000 acres have burned. President Obama also offering money and equipment today. The number of fire engines and crews will double.
In sports, golfer Rory McIlroy is considering a career change. He just wore a San Francisco Giants jersey to throw out the first pitch at their game last night. And you see, it was a pretty good toss for a guy from Northern Ireland. McIlroy is in town to defend his U.S. Open title at the Olympic Club this weekend.
Rhode Island is set to become the 15th state to decriminalize marijuana. No big fines, no jail time, nothing on your record. Fourteen states have already reduced criminal penalties for recreational use of marijuana. And a Gallup poll shows a record high of 50 percent of Americans now say that marijuana should be legal. That's up from 46 percent two years ago, and 25 percent in the '90s.
Rhode Island State Representative John G. Edwards has a bill on the way to the governor that could make his state the next to decriminalize marijuana.
Welcome.
JOHN G. EDWARDS (D), RHODE ISLAND STATE HOUSE: Good morning, Carol.
COSTELLO: Good morning. Thank you for being here.
Tell us what exactly your bill does.
EDWARDS: My bill will actually take away the criminal penalty and make the penalty for possession of a small amount of marijuana a civil penalty. Very much like a speeding ticket.
COSTELLO: So --
EDWARDS: Actually it will have a $150 fine. If you get caught three times in 18 months, the fine reverts back to the current penalty. And if you're a minor, and you get caught, your parents are notified. You have to do community service. And you also have to do a drug rehab program.
COSTELLO: I know you support medical use, but not recreational use. And hence, you know, we heard what you said.
Yet you say there's a difference between decriminalizing marijuana and making it legal. Can you parse that out for us?
EDWARDS: There's a big difference. Number one, it will continue to be illegal in the state of Rhode Island. It will just have a civil penalty, very much like a speeding ticket, which means the police if they catch you with it will take it away. They will issue a citation for a $150 fine. And if you get caught three times in 18 months, you revert back to the current penalty, which is $500 or more and up to six months in prison.
COSTELLO: Some might say this is just another step in legalizing marijuana. Is it?
EDWARDS: No. This is a step to take away the criminal stigma from something that a lot of Americans do. And 65 percent of the people in recent polls in Rhode Island support this measure.
COSTELLO: Well, still, like I said, you said 65 percent of Americans do it. So, again, is your bill and laws like it enacted across the United States just a first step in legalizing marijuana?
EDWARDS: I don't believe so. You've had 14 other states do it. Some of them way back in the 1970s. You have had -- you haven't had any legalization steps in any of those states. You have a state like North Carolina, Alaska, that have decriminalized marijuana in one form or another.
Our neighbors, Connecticut and Massachusetts, have both decriminalized it. So it's now is the time really for Rhode Island to step up and join its neighbors.
COSTELLO: Well, it just seems to me like the wave is coming. If people do it, and they accept it, and most people think that marijuana should be legalized, then why don't legislators just go ahead and legalize marijuana instead of taking baby steps?
EDWARDS: Well, you know, you understand the legislative process. It's all about baby steps. You might look at this as a baby step. I look at this as a very large step for Rhode Island. This is something we have been working on for several years.
And I'm hoping that we can have this law go into effect, the governor signs it, and we go from there. And we see how the decriminalization works for Rhode Island. It's going to save the taxpayers in the state money. It's going to keep people from having their lives ruined, especially if they have a youthful indiscretion.
And overall, I think it's going to be good for the state. It will allow our police to do their real job, which is go after real crime. Not people who happen to have a small amount of marijuana in their possession or in their car.
COSTELLO: Although there are law enforcement officials in your state who say that marijuana is a gateway drug, and this bill, if it becomes law, will make it more difficult for them because kids will think it's OK to smoke marijuana because it's no big deal, really no big deal now, and they'll graduate to harder drugs.
EDWARDS: That's a fallacy. They have done studies on states that have already decriminalized it, and they found there has been no increase usage in those states does. You'll find that the police in Massachusetts haven't had a real issue with it. The police in Connecticut haven't had a real problem with it.
You'll find overall that this is a good measure, and it will allow the police to really do what they do best, which is solve real crime.
COSTELLO: I know this is off topic, but I have to ask you. Your name, John Edwards, we added the G, of course. I mean, it --
EDWARDS: I'm the good John Edwards, Carol.
COSTELLO: You're the good John Edwards.
(LAUGHTER)
COSTELLO: Really, how do people react when you say hi, I'm John Edwards?
EDWARDS: Well, usually if it's a woman, I usually get a very generally bad reception. I have to stress that I am the good John Edwards, not the one from North Carolina. And I still love my wife. And I take care of her very well.
COSTELLO: Well, thank you so much for joining us, John G. Edwards.
EDWARDS: Thank you, Carol, for having me.
COSTELLO: Sure.
With Father's Day coming up this weekend, we can't help but notice there's definitely a disconnect between pop culture and reality when it comes to dads. Why are they always portrayed as bumbling idiots? We'll talk about that.
And don't forget if you're heading out the door, you can take us with you. Watch us anytime on your mobile or computer. Just head to CNN.com/TV.
(COMMERCIAL BREAK)
COSTELLO: Now is your chance to talk back on one of the stories of the day. The question for you this morning, why have dads been downgraded? Have you looked at the dads in pop culture these days? It's a pretty sight. Cute and cuddly but clueless when it comes to raising kids.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You drop your kid of a changing table?
UNIDENTIFIED MALE: Stuff just happens, OK? Last week, my kid ate a cigarette.
UNIDENTIFIED MALE: I caught him playing in a dryer yesterday.
UNIDENTIFIED MALE: I picked up the wrong baby from day care.
(END VIDEO CLIP)
COSTELLO: Michael Landauer of "Dallas Morning News" says dads have poorly been portrayed by a culture that clings to a mommy-centric message, quote, "Dads have become obsolete in our culture. Rare is the TV dad who is not a buffoon, a screw-up, an unprepared, arrogant, incompetent ass," end quote.
When did men go from "father's knows best," the dad who was always right, to "National Lampoon's" Clark Griswold? The (INAUDIBLE) dad. Talk about iconic.
After all, President Obama, America's dad in chief, is a parental role model. As his campaign so proudly reminds us with this year's Father's Day card.
And Mitt Romney, it is clear his sons love and admire their father.
In a study by the National Fatherhood Initiative said fathers were eight times more likely than mothers to be portrayed negatively. So why the disconnect?
I don't remember my dad ever having a problem pushing the baby carriage way back in the dark ages, the '60s. Landauer says today's dad is out there in birthing classes, on the blogs, and in the parks doing his fair share and deserves more than what popular culture is dishing out. I second that.
So the topic of question today, why have dads been downgraded? Facebook.com/CarolCNN, Facebook.com/CarolCNN. I'll read your comments later this hour.
(BEGIN VIDEO CLIP)
CAMERON CARPENTER: What I'm interested in is bridging the gap between the organ of the past and the organ of the future. I am now creating a touring organ which will actually be two touring organs. One will be in the U.S., and one will live in Europe.
The instrument that I want is an organ which will answer my every need and which will give me something for every genre of music that I want, that will hybridize all of the organs that I love. But which will be totally free of all of the roomfuls of wood and metal junk.
My name is Cameron Carpenter. And my work is the playing of the organ in an unprecedented way.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COSTELLO: Good morning to you. I'm Carol Costello. It's 31 minutes past the hour.
Opening bell just rang on Wall Street. Stocks are looking flat today as investors wait on economic reports and new details about trading losses at JPMorgan Chase. Jamie Dimon, as you know, will be testifying before Congress in about 30 minutes.
He's already admitted we have let a lot of people down, and we're sorry for it. That's just part of what we're expecting to hear from Jamie Dimon today during that Senate committee appearance as Dimon tries to explain the trading blunder that led to a multibillion dollar losses for his firm, and damaged his reputation.
Regulation correspondent Lizzie O'Leary is outside of the hearing room on Capitol Hill.
We just saw Jamie Dimon walk in. Reporters were already asking him questions.
LIZZIE O'LEARY, CNN REGULATION CORRESPONDENT: Yes. I was one of them, Carol. Look, I've known Jamie Dimon for a long time. He's not someone likely to shy away from an opportunity to talk to someone with a microphone or a notebook in their hand.
But he wasn't doing that today. He knows his audience is Congress. And also people who are trying to figure out three main things here.
Number one, what happened, how did they lose so much money, and who was minding the store. Should he and the other leadership folks have been in control there?
Number two, what's Jamie Dimon's future? Remember, this is the guy who has been sort of the ambassador for Wall Street. He was at one point very close to President Obama. Much less so now.
And number three, what's the future of financial regulation? Dimon was supportive of that in the beginning when that Dodd-Frank law was written. He's been much less so as this has moved along. A lot of attempts even by lobbyists from his own firm to weaken some of the things that were put into law by Congress.
This is still an ongoing thing, though. The law was passed. They still have to put a lot of rules into practice.
So what Jamie Dimon says has a big influence on how financial regulation gets written overall, Carol.
COSTELLO: I know you're going to stick around and listen to that entire hearing. We'll check back with you. Lizzie O'Leary, reporting live from Capitol Hill this morning.
As Lizzie just said, Jamie Dimon will be testifying in just about 30 minutes. We will bring his testimony to you live as it happens.
The issue of climate change has become so polarized in politics that lawmakers are avoiding the term altogether. Instead, one state is calling it "recurrent flooding."
(COMMERCIAL BREAK)
COSTELLO: Question: Is "sea level rise" a left-wing term? Some Virginia state Republicans think it is, and they insisted it be removed from a study designed to save Norfolk, Virginia, from rising sea levels.
Norfolk spends about $6 million every year trying to prevent flood damage. Scientists say the problem is related to climate change and rising sea waters. But some Republicans are so repulsed by liberal buzz words that getting laws passed to address the problem can be challenging.
But a bipartisan team of state senators managed to convince Virginia lawmakers to approve $50,000 to study Virginia's erosion problems by avoiding certain phrases.
One of those senators joins me now. He is Virginia Democratic State Senator Ralph Northam. He's in Virginia Beach.
Welcome.
RALPH NORTHAM (D), VIRGINIA STATE SENATE: Thank you so much for having me, Carol.
COSTELLO: We invited your Republican counterpart but he couldn't make it this morning. So welcome. We're glad you're here.
First of all, tell us what could happen to Norfolk if the flooding problems aren't addressed.
NORTHAM: Well, we have a tremendous issue here in Norfolk. As most of you probably know, we are second only to New Orleans in the United States as to how vulnerable we are to flooding. And we know that over the past 100 years, about that -- we've had a sea level rise of about 14 1/2 inches.
So with that in mind, as we move forward with planning for our roads and our infrastructure, for taking care of the military, which is 47 percent of our economy here in Hampton Roads, and really working with the courts and doing the things that they need, it's important that we know the impact of the sea level rise, it is a reality. And for good planning, we need to know about that as we move forward.
COSTELLO: Hence that's why you guys want to spend $50,000 of taxpayer money to study this problem. And to do that, it was no easy task.
So this is what we've heard. At first, the studies were about climate change. And then sea level rise. And now they are about coastal resilience.
How long did it take you to reach this compromise on language so you could implement this plan?
NORTHAM: Yes, ma'am. We started with sea level rise. And it became apparent in talking to some of my Republican colleagues in the House and the Senate that we would need to change it to recurrent flooding, which we did. So, you know, it's just a matter of semantics. We were able to do that.
And then as you said earlier --
COSTELLO: But didn't that drive you crazy?
NORTHAM: Well, it's frustrating. It's a bit embarrassing. As you know, I'm a pediatric neurologist, so I rely heavily on science and evidence-based medicine is what we try to practice.
So, for those out there that are ignoring the science, it is frustrating. But we need to move forward, so that's why we did what we did.
COSTELLO: Well, compromise is a beautiful thing, especially nowadays. But I just wonder why is a phrase like sea level rise sending some people screaming?
NORTHAM: Well, it's a great question. And I -- you know, I don't know what they're thinking. I don't know what they are worried about. But again, I -- you know, calling a spade a spade, it is a reality that the sea level is rising. We know that. We know that it's going to impact us here in Hampton Roads.
So whether you call it, you know, sea level rise or recurrent flooding or climate change, the bottom line, it's a reality, and we need to do what we need to do in order to take care of the taxpayers' money and do it in a responsible fashion.
So, you know, it's just a matter of semantics. And we need to move on and do the right thing.
COSTELLO: And you guys did.
Senator Northam, thank you so much for being with us.
NORTHAM: Thank you so much, Carol, for having me.
COSTELLO: The way you surf the Internet could be changing. If companies like Google have their way. We'll tell you why.
(COMMERCIAL BREAK)
COSTELLO: Forty-three minutes past the hour.
Stories making headlines this morning:
Move over dot.com and dot.net. Soon we may be serving dot.google and dot.lol. It's all part of a plan to expand Internet domain names, so big companies like Google are paying big bucks for the opportunity. A list of those companies expected to be released today.
In money news, fudge, caramel, and bacon? Not the ingredients in your traditional ice cream sundae, but Burger King is hoping it will lure bacon lovers and others back to the fast food chain. The bacon sundae, which comes in at a whopping 510 calories, is part of a limited edition summer menu item. It debuts tomorrow.
The kid from last year's adorable Darth Vader Super Bowl commercial is having open heart surgery tomorrow. You remember this Volkswagen ad.
(VIDEO CLIP PLAYS, COURTESY VOLKSWAGEN)
COSTELLO: It was the best commercial. That's Max Page under the mask. The 7-year-old was born with a heart defect. His family told NBC's "Today Show" they wanted to fun up the house for when Max left the hospital.
(BEGIN VIDEO CLIP)
JENNIFER PAGE, MOTHER OF MAX PAGE: Covered in science projects and paint and every stuffed animal that he owns is waiting for him in the living room. So when he hangs on the couch and he is a little groggy and sleepy, he'll look around at all his animals and be surrounded with love.
We're entering that part now where we hand our son over to very skilled and talented people, but with a mission to save his life. And that's just -- we have him right now.
(END VIDEO CLIP)
COSTELLO: Oh. Doctors will place the kid's -- Max's pulmonary valve and fix a hole in his heart.
Let me bring in A.J. Hammer, this was one of the most popular commercials that year, this little Darth Vader guy.
A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": Yes, I love the kid. We didn't -- unfortunately, we didn't get to see him start the car. That was the whole thing. He's trying to get everything to start and suddenly, little Darth walks out to that Volkswagen and, boom and somebody remotely starts and it just made his day. And I think it made everybody else's day too. COSTELLO: He's just a great kid. Apparently he's been raising money to help other kids with heart problems. So our best to him.
Oh let's talk about something a little more fun, shall we? Marilyn Monroe perhaps.
HAMMER: Yes, Marilyn Monroe. Well, not so much fun for companies involved in what is shaping up to be an interesting legal battle Carol. The Marilyn Monroe's estate is telling "SHOWBIZ TONIGHT" that they don't know what the company DigiCon's capabilities are with a hologram that they want to use of Marilyn Monroe.
They are very concerned about what this is going to do and here's what they're telling "SHOWBIZ TONIGHT". "They're unaware of any successful attempt by this company Digicon to organize any meaningful exploitation of the crudely animated character that it claims to be a representation of Miss Monroe. And which it alleged created in the mid 1990s.
Now, the estate here wants to stop Digicon from infringing on their rights. They want them to stop exploiting Marilyn's image. Now Digicon responded to the story by telling "SHOWBIZ TONIGHT" they have a copyright to this virtual Marilyn Monroe. What they're trying to do with this thing is create an entire concert around the character. Imagine showing up to a Marilyn Monroe concert in 2012.
Now they also say the estate doesn't actually have any rights to publicity for Marilyn's image and they point to two court cases they say justify that statement. According to Digicon, the estate didn't inherit those rights.
It's going to be interesting to see regardless of the legalities, Carol. What concern me is Marilyn Monroe was you know seemingly exploited so much in life, it's just a shame to see that going on all these years later.
COSTELLO: Yes and just the whole idea is just kind of creepy. It's just creepy.
A.J. Hammer, thanks so much.
HAMMER: You got it.
COSTELLO: We asked you to "Talk Back" on one of the stories of the day. The question for you this morning, "Why have dads been downgraded?" Your responses coming up.
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COSTELLO: We asked you to "Talk Back" on one of the stories of the day. The question for you this morning, "Why have Dads Been Downgraded?"
This from Eugene, "Some people label me as mother trapped in a father's body. Even my co-workers praise me as a super dad. Maybe fathers have been downgraded due to a lack of embracing the title versus being a sperm donor."
This from Mark, "It's overcompensation for the feminist movement. We went from unequal in favor of men to unequal in favor of women. We skipped both being equal."
This from Tom, "Why are dads less important in our culture nowadays? Easy. Mommies buy more stuff."
This from Mitzi, "They haven't been downgraded. What needs to be addressed is the fact that too many dads aren't around to take care of the kids they make -- all over the place with different women."
And this from Kara, "My husband is a super dad, he's very involved with raising our son. I have to think that his behavior will have a stronger influence on our son than any TV show that portrays dads as dingbats."
Keep the conversation going, Facebook.com/CarolCNN and thanks as always for your comments. And I'll read more in the next hour.
Also ahead, trouble for the Philly Phanatic. Why a woman is suing over what was supposed to be a funny Phillie Phanatic stunts.
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COSTELLO: Jeff Fischel is here. Oh, the Miami Heat.
JEFF FISCHEL, HLN SPORTS: You know, Lebron James is going to hear about it for the rest of his career until he wins an NBA title. It doesn't matter that he gets his team here year after year, he's got to win a title. And the strike's shortened season, a lot of people thought the Heat and Oklahoma City Thunder would meet in the finals. And sure enough it is them.
The two best, two-man combos in the league. You've got Lebron and Dwyane Wade on one side. You've got Kevin Durant and Russell Westbrook on the other side. And early on, it was everybody but the stars.
The Miami Heat firing away from three-point range. That's Shane Battier, five three-pointers in the first period, without Lebron contributing any of them. The Heat lead by as many as 13 and went up seven at the half.
Different story after the breaks. Kevin Durant and Russell Westbrook dominate. They outscore the Heat in the second half. Durant, 17 of his 36 points in the fourth quarter.
The Heat lose the outside shooting touch; Lebron just 7 points in the four quarter. The Thunder win game one in front of that enthusiastic home town crowd going Thunder struck. 105-94 the final. Game two tomorrow night in OKC.
Here is one for the history books. This is baseball history right here. A-Rod, the Yankees Alex Rodriguez, a grand slam against the Braves. It's the 23rd grand slam of his career. That ties him with Lou Gehrig for number one on the all-time list. Another great Yankee. A-Rod said matching the Yankee legend was special. It was a special night for the teenage fan, who caught the ball. He met A-Rod, got a signed bat as well as a jersey in exchange for the homerun. A-Rod's blast tied the game. Yankees go on to win.
Rory McIlroy is in San Francisco for this weekend's U.S. Open at Olympic Club. He threw out the first pitch at the Giants game last night. Now remember, he's not a baseball -- he grew up in Scotland. He's not a guy. That's pretty good. There's also a Rory McIlroy bobble-head doll. But the guy deserves one.
The Giants pitcher, Madison Baumgartner, the pitcher goes deep for a home run. He also got 12 strike outs in the game. Baumgartner wins his eighth of the year and the Giants win.
And one woman is not laughing at the Philadelphia Phillies Phanatic. His antics didn't go over well. She's suing the mascot for throwing her into the pool during a comic routine at a New Jersey resort. It's kind of like, imagine a "Jersey Shore" gone bad. The suit claims the woman suffered severe and permanent injuries really all over her body. You know lawyer-speak. Loss of life pleasures in a lawsuit. I can only imagine, quote, "loss of life's pleasures". That's in the lawsuit.
COSTELLO: Really.
FISCHEL: I can only really imagine what that might mean.
COSTELLO: He threw her into the pool that hard. That's why (inaudible) --
FISCHEL: She says because of that, she's injured all over and she's lost life's pleasures.
COSTELLO: Sure you'll keep us posted.
FISCHEL: Let's just leave it right there.
COSTELLO: Ok. How would you like to have a dog named after you? Oprah did not and she called out rapper 50 Cent for it. Jeanne Moos explains.
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JEANNE MOOS, CNN CORRESPONDENT (voice-over): At least rapper 50 Cent didn't call Oprah a dog, but he did call his dog Oprah.
OPRAH WINFREY, TALK SHOW HOST: You've named your dog Oprah. That was not a compliment.
50 CENT, MUSICIAN: I have a tat -- I have a tattoo. WINFREY: Name?
50 Cent: Gayle.
MOOS: That would be Gayle King, Oprah's best friend.
Oprah and 50 Cent had a feud going. She campaigned against the use of the "n" word in rap and said some rap was degrading to women. 50 took it personally then fired back.
He didn't just name his dog Oprah, he started a Twitter account for Oprah the dog sending out twit picks and foul-mouthed tweets. And while Oprah the dog was LMTO, laughing my tail off, Oprah the celebrity wasn't. Now years later on her own network asked 50 to his face.
WINFREY: I heard you had a bitch named Oprah.
MOOS: 50 spent much of the interview not looking at Oprah.
WINFREY: You have a dog named Oprah.
50 CENT: Yes.
WINFREY: I consider that a compliment, whether you meant it to be one or not.
50 Cent: I love you. You know what they say, a dog's is man's best friend?
WINFREY: Yes.
MOOS (on camera): Actually, lots of celebs name their dogs after other celebs and usually they mean it as an honor. Actress Jennifer Garner has a lab named after Martha Stewart.
MARTHA STEWART, HOST: This is one Martha Stewart, and this is the other Martha Stewart.
JENNIFER GARNER, ACTRESS: Who's better behaved?
MOOS (voice-over): Jennifer is a fan of Martha's. The actress also used to have a dog named Charlie Rose.
Back when Kathie Lee and Regis used to co-hosted, he was always asking her to name her babies after him. So she counter- offered.
KATHIE LEE GIFFORD, HOST: If I adopt a puppy from the pound and name it Regis, would you get off my back? He goes, would you do that for me?
MOOS: He would. And she did.
In 2009, a movie called "I Love You, Man" featured this pug/beagle mix.
UNIDENTIFIED MALE: He's cute. What's his name?
UNIDENTIFIED MALE: Anwar Sadat, after Anwar Sadat, because they look exactly alike.
MOOS: The daughter of the late president disagreed. She filed a lawsuit in Egypt and complained to the U.S. Embassy.
As for 50 Cent, he finally gave Oprah a serious answer to why he named his dog after her.
50 CENT: I was developing negative feelings for someone who didn't even know me.
MOOS: At the end of the interview, the two sniffed and made up. Don't call me a dog. I'm a donkey. Jeanne Moos, CNN, New York.
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