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Dimon Apologizes Before Congress; Retail Sales Fell in May; U.S. Aid To Syrian Rebels; New Web Domain Proposals Revealed; Dem Strategists: Obama On Wrong Track; Sandusky's Sex Abuse Trial; Toddler Ejected During Police Chase; Racial Controversy Divides Town In East Texas

Aired June 13, 2012 - 14:00   ET

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

BROOKE BALDWIN, CNN ANCHOR: Hey, Fred, thank you so much.

Hi, all of you. I'm Brooke Baldwin. Top of the hour.

Just moments ago, Secretary of State Hillary Clinton said the U.S. is not providing military support to the Syrian rebels, as the country's regime attacks its own people. But, here's what we are hearing today. That the U.S. is indirectly providing support to militants. And listen to this. The training involves technology. So one of the questions posed in this is, what's more powerful in this violent chaos, is it the AK-47 or is it the video camera? That answer in just a couple of minutes.

But first, this. Like it or not, most of us have some kind of money tied up in Wall Street. Whether it's our retirement fund, our home mortgage or our jobs. When Wall Street takes a hit, we take a hit. And that is why Jamie Dimon, very much so, has our attention today. Here he is walking the halls on Capitol Hill. He went to The Hill to explain why his bank, JPMorgan Chase, lost $2 billion on what everyone, including Dimon himself, call risky trades. But before Dimon actually got to speak and answer questions there at this hearing, he ran head on into this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: These guys are not the job creators. They're the job destroyers. We need to bring the money back to the people and we need to start getting money to help people stay in their homes. This man is a crook.

(END VIDEO CLIP)

BALDWIN: Tough words for the man really quite widely considered one of Wall Street's most credible voices.

But how about the questions Dimon faced during today's Senate hearing? I want to bring in CNN's Lizzie O'Leary. She's been watching this whole thing unfold this morning.

And, you know, Lizzie, I just want to play a little sound before we talk because when you listen to the line of questioning, the approach seemed really to fall along party lines. So, first up, we're going to hear from an Ohio Democrat. This is Sherrod Brown.

(BEGIN VIDEO CLIP)

SEN. SHERROD BROWN (D), OHIO: It appears, from listening to you and your comments, from watching what's happened, in talking to the regulators and seeing the OCC response, it appears executives and regulators simply can't understand why -- what is happening in all these offices at once. It demonstrates to me that too big to fail banks are, frankly, too big to manage and too big to regulate.

(END VIDEO CLIP)

BALDWIN: And from a Democrat, we go now to a Republican. This is South Carolina Republican Jim DeMint.

(BEGIN VIDEO CLIP)

SEN. JIM DEMINT (R), SOUTH CAROLINA: We can hardly sit in judgment of your losing $2 billion. We lose twice that every day here in Washington, and plan to continue to do that every day. It's comforting to know that even with a $2 billion loss in a trade last year, your company still, I think, had a $19 billion profit.

(END VIDEO CLIP)

BALDWIN: So, Lizzie, the question is, it's sort of transparent, who's a Democrat and who's a Republican when it comes to the questioning today.

LIZZIE O'LEARY, CNN CORRESPONDENT: Yes, absolutely. Look, you certainly had both parties laying out pretty partisan lines of questioning toward Jamie Dimon. I mean he has been in some ways a bipartisan favorite banker among members of Congress and in the administration. He was, for a while, quite close to the president.

And this really shows you less a split about how they regard Wall Street, but more about how they regard regulation. You heard Sherrod Brown talking about breaking up the big banks. That's something that he wanted to do. The administration did not support that. You heard on the other side Jim DeMint invoking the Republican line of too much government spending. So, less about Jamie Dimon and more, in this case, a lot about sort of going after some of those long held and long cherished Washington positions.

BALDWIN: So what's the takeaway? I mean, what did we get out of today's hearing because, you know, everyone posturing politically?

O'LEARY: The key takeaway is this. There is a series of things that are being written right now. We all remember that banking reform was passed, right? Well, that's not exactly how it works. A law is passed, but then they have to fine tune it and put it into place. And what's going on right now is trying to figure out whether banks can take customer money, deposits like yours and mine, are allowed to make big, risky bets with it, and whether the kind of bet that JP Morgan made would have been allowed under these new laws. They're still fine- tuning the language. Banks are lobbying very, very hard on this. And so that's why this is so important right now because this law just isn't done yet.

BALDWIN: So, the law isn't done yet. But part of this discussion, it seemed like, went to a bigger picture of, you know, pontificating on the economy because you had, you know, Jamie Dimon telling these senators that the economy currently is on a cliff and they can't wait until, you know, November to act. Can you give a little context, why has he even talking about that and really -- what really is the chance of that happening in an election year?

O'LEARY: Well, right. There we revert back to Jamie Dimon's former role as economic wise man trusted by both parties. And what he's talking about is this so-called fiscal cliff that the economy is headed toward, where you have a bunch of tax cuts expiring and also automatic spending cuts that would be triggered. People are calling this the fiscal cliff. Congress knows it's got to deal with this. The White House knows it's got to deal with this. They are moving toward this and trying to figure out if anybody's going to blink before the end of the year when all of these things would happen at once.

Jamie Dimon is not the only corporate CEO who's been talking about this. A lot of other big names have been talking about it. Both this and also kind of longer term deficit worries. Those are big things that Wall Street guys like to talk about a lot, Brooke.

BALDWIN: And I know they even brought up student loans. I was talking to someone the other day. A lot of people are worried about those interest rates, right. The deadline is July, which is quickly approaching.

Lizzie O'Leary, my thanks to you, in Washington.

And since we're talking money, let's look at the big board, shall we, and see -- see how the numbers are on this afternoon. It is down just a bit, 18 points. This is happening as we are getting news that the retail sales, they are down for two months in a row. Alison Kosik, why?

ALISON KOSIK, CNN CORRESPONDENT: Well, you know what this shows, Brooke, first of all? It shows that the economic recovery that we're in, in the middle of, it really -- it's cutting into confidence because no one really knows which way it's going. What we learned was consumers spent less money in May than they did the month before.

And what's interesting, when you look at these numbers, you see that biggest decline at gas stations. Gas prices fell about 20 cents a gallon on average from April to May. And that's because of worries about a slowdown in demand coming from China and Europe.

We also spent less on other stuff. On building and gardening supplies. And you can blame that actually on the weather. Blame it on the warmer weather we had an earlier part of this year because a lot of spending on that stuff came earlier this year.

BALDWIN: All right, Mrs. Silver Lining, give it to me. Give me a bright spot. KOSIK: All right, so here's some bright spots. One silver lining is that gas prices are lower. You know, it does the obvious, it puts more money in our pockets for other things. Car sales are also a bright spot. Those came out pretty strong. Also, other considered non- store retailers. Like online retailers. Avon and QVC had good sales. Clothing and electronics are selling pretty well.

Another good thing. If you look at retail sales overall, compare this year to last year, they're actually up 5 percent. So, yes, we are feeling better than we did last year. That's a positive sign. But the problem with this is that it's really just not full steam ahead just yet, Brooke.

BALDWIN: Alison Kosik, thank you.

And we are just getting started here. A lot more unfolding. Watch this.

As the U.S. and Russia are now pointing fingers over Syria, I'm going to speak live with one guy who says it may not be too farfetched to think the U.S. could kill Bashar al Assad.

I'm Brooke Baldwin. The news is now.

A lawyer is accused of trying to hire a hit man to kill his socialite wife. But now a bombshell involving the man's mistress.

President Obama gets an earful when it comes to the economy -- you're way off message. But it's not Mitt Romney. Instead, it's from an ally, the ragin cajun.

And, dot set, dot baby, dot pizza. Why hundreds of new web domains could change the Internet forever.

(COMMERCIAL BREAK)

BALDWIN: It was just about this time yesterday when we talked to you about the killings and the torture of children. Killings and torture of children in Bashar al-Assad's Syria. And we spent really a harrowing five minutes with this United Nations official who told me she has never witnessed organized violence against kids on this scale ever in her tenure there. Here's part of that interview.

(BEGIN VIDEO CLIP)

RADHIKA COOMARASWAMY, U.N. SPECIAL REPRESENTATIVE: This is the one conflict in which we're seeing really the torture of children and attention at a very high scale. Summary executions of children. So this is really quite disturbing for us, what is happening in Syria.

BALDWIN: It's interesting you say this is the one conflict. Is this the one conflict that -- this is the worse you've ever seen when it comes to kids?

COOMARASWAMY: Well, I think the -- I've been here since 2006, I must say after Bosnia and Rwanda. I've taken this post in 2006. And I must say that I have not seen such large-scale violence against children, such as in the torture of children and in summary execution of children. I don't think I've seen it any. I've seen a lot of children been killed in the crossfire, I've seen children recruited as soldiers, I've taken testimony from children who were victims of sexual violence, but, I must say, summary execution of 49 children under the age of 10, that I have not seen anywhere else.

(END VIDEO CLIP)

BALDWIN: As we mentioned, we conducted that interview yesterday. Today we are getting word of 49 more deaths in the violence gripping Syria, including 16 more in Homs alone.

Here is more video. This was shot in Homs today. This shows a home on fire from the relentless government shelling.

We also have this. This is video shot behind rebel lines. These are Syrian militants firing automatic weapons.

So, listen to this here, because here's what we're learning today. Russian's foreign minister turned the tables on Washington. He accused the U.S. of arming Syria's rebels. Here's what the State Department just said about that.

(BEGIN VIDEO CLIP)

VICTORIA NULAND, STATE DEPARTMENT SPOKESPERSON: The United States is sending no military equipment to the Syrian opposition. What we are doing is providing nonlethal support, that we've discussed here, primarily communications gear, and we are also one of the largest donors of humanitarian relief.

(END VIDEO CLIP)

BALDWIN: So, you know, essentially the State Department is saying, you're wrong, Russia, we are not sending arms to Syria. But, here's what we are sending. We are sending humanitarian relief and we're sending communications gear. Interesting. Because all these video we're seeing here, sent out by the Syrian opposition, they're getting help with that from Washington.

I want to bring in my friend Jay Newton-Small. She is with "Time" magazine. And she has just done some reporting detailing all of this new technological help we're now giving the Syrian rebels.

Jay Newton-Small, what did you find out?

JAY NEWTON-SMALL, "TIME" MAGAZINE: Hey, Brooke. Well, it's fascinating, because for months you've seen this proliferation of videos from behind Syrian lines. And you wonder, because Syria has got such control over their Internet, how are these videos getting out? Have the sort of dissidents suddenly become expert hackers and they -- or have they hired expert hackers. And it turns out, actually, no.

And the U.S. isn't the only country doing this. Europe is also doing this. But there are a lot of NGOs that have been around Syria and who have been training these dissidents -- they leave the country to do the training -- in how to sort of encrypt their videos. How to overcome government firewalls. How to essentially get the message out when they aren't supposed to be able -- they aren't supposed to be able to get the message out.

BALDWIN: You use this word, I've never heard it before, cyber warrior. Define that.

NEWTON-SMALL: Well, you know, one of the -- one of the dissidents we spoke with talked a lot about, you know, I've got my AK-47 in one hand and I've got my camera is in other. And for a lot of these battles, I'm sort of wondering, do I pick up my AK-47 and defend these protesters, or do I -- do I use my camera and film it and then put it up.

And it's sort of become, you know, almost a question of, is the pen mightier than the sword? And he told us that most of the time it's actually the camera work, you know, that is more powerful and does more good and changes things more than, you know, any amount of firing of the AK-47.

BALDWIN: Yes, at the end of your piece you say, asked whether his AK-47 or his video camera is more powerful, he said at first my AK, paused for a few seconds. Actually, if there is an Internet connection, my camera is more powerful.

Here's what I want you to fully explain to me though is how exactly is the U.S. helping these men, and perhaps women as well, I don't know, going beyond the Syrian firewalls and uploading the video? How are we helping?

NEWTON-SMALL: Well, there are three different pools of money, and there's $72 million the State Department has for what's called Internet Freedom Grants. And that's globally. So it could be helping China, Chinese dissidents. It could be helping Iran. It could be helping in Egypt. Any number of countries.

But a lot of this money has actually gone to Syria in recent months. And what it does is it trains them. So it pays for the training of the dissidents. And it also works on software. And there's some really cool stuff that they've got -- using out there, especially sort of for mobile phones, which are the most venerable aspects of, you know, functioning in hostile environments because the government's can use the phones to track you. They can use the phones to bug you. And if they -- if you get pulled over with your phone, it's just a sort of built in treasure-trove of evidence against you. All the videos you've shot and all your e-mails.

BALDWIN: Yes.

NEWTON-SMALL: And so what they've done is they've created this technology where, with the touch of a button, you can wipe out your phone completely. It's called a panic button. And that way the police won't see anything on it. There's another -- there's another piece of -- another application where if you type in the wrong code, it presents a false screen and all kinds of false images. Even maybe one with a big picture of Bashar al Assad, playing the national anthem on it or something.

BALDWIN: Wow.

NEWTON-SMALL: And so there's these really cool devices and gadgets that they've got now and it's helping them fight this war.

BALDWIN: We take so for granted what we're able to do, right, here in the U.S. The freedom we have. And it's so not the case in these other countries. But here's my question, because you write, even as the Assad regimes army crushes the opposition on the ground, the dictator has been losing the war online. How do we know they're losing the war online? What evidence did this guy who you spoke with share with you?

NEWTON-SMALL: Well, I mean, I think we have evidence of that. You look at -- look at sort of the ongoing PR battle that Bashar al Assad has been running. I mean 14, 15 months ago, he was the darling of "Vogue" magazine and he was, you know, being embraced by Barbara Walters. And these days he's one of the most loathed men on the planet.

There are no foreign journalists allowed in Syria right now. So all the information we have coming out of Syria, all that footage that you just showed on CNN, that's coming from these dissents. I mean they are the ones who are getting the word out and showing what's really going on here. And that's incredibly powerful. It is, you know, essentially freedom of the press, freedom of speech.

BALDWIN: Yes, it is so frustrating. You know, we've had a correspondent or two in country, but, you know, they don't want us there. They don't want us showing and telling these stories of slaughter.

Let me just end with this, because this can't all just be easy. I mean what is the biggest challenge here as part of this program?

NEWTON-SMALL: I think the biggest challenge is certainly when I was talking to people, they were incredibly leery about (INAUDIBLE) being kept secret, where the trainings are done being kept secret. And we had to change the names of all the dissidents we spoke with because obviously we don't want to put them at risk back at home.

BALDWIN: Right.

NEWTON-SMALL: And it's also just, you know, getting, you know -- it's sort of getting over a stigma and people saying, well, you know, because you're trained by the Americans, you're an American pawn. When, in fact, this training just enables them to do -- to show what they want to show. We're not sort of coming to them with any kind of agenda. And America isn't saying, you know, we want you to promote American values here. They're just sort of saying, here are the tools. You guys go and do whatever you want to do with it.

BALDWIN: The video camera mightier than the AK-47. It's a fascinating piece. I recommend it all. Read it in "Time." "Hillary's little start-up. How the U.S. is using technology to aid Syria's rebels."

Jay Newton-Small, thank you so much.

NEWTON-SMALL: Thanks, Brooke.

BALDWIN: Ray Liotta played in the "Goodfellas," but now word the infamous mobster Henry Hill has died.

And get ready for the Internet to explode with some new domain names. Forget dot com. How about dot pizza, dot space, dot I love watching Brooke Baldwin on CNN. I don't know. A live report on why exactly this is happening and what really this means for the future of the Internet. I was kidding.

(COMMERCIAL BREAK)

BALDWIN: More news unfolding. "Rapid Fire." Roll it.

Right now a jury is deciding the fate of Roger Clemens, the baseball great accused of lying to Congress about using steroids, growth hormones. Clemens is not charged with using the performance enhancing drugs. He is just charged with perjury. Keep in mind, he never actually took the stand in his own defense. So we're monitoring that. And, of course, should news break, you will hear it here first.

To Colorado. A wildfire continues to rage across the northern part of this state. And, in fact, we have sped up -- part of this video is a time lapse of the flames, sent to us via i-Report. This fire here, it has now burned more than 46,000 acres. The good news is this. And I'm saying some good news. Hundreds of firefighters have arrived from all around the country. More than 1,000 are now fighting these flames. And a Forest Service spokesman says the fire is starting to diminish, at least they say, in some areas there.

And a terrorist group is taking credit for bombing a U.S. consulate in Libya last week. They posted this video on a jihadist website. They said they retaliated against the U.S. for killing al Qaeda's number two man in Pakistan and they said their fighters planted an explosive in the wall of the consulate, which then went off injuring one person.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE, ACTOR, "GOODFELLAS": As far back as I can remember, I always wanted to be a gangster.

(END VIDEO CLIP)

BALDWIN: The man who inspired "Goodfellas" has died after a long illness at age 69. Henry Hill was a New York mafia associate from the '60s through the '80s. He turned informer for the FBI and lived for a time in a witness protection program. Ray Liotta played him in the movie.

And the Alabama manhunt is now over for that man wanted in the killing of three people, including two former Auburn University football players. Twenty-two-year-old Desmonte Leonard turned himself in just last night at a federal courthouse in Montgomery.

(BEGIN VIDEO CLIP)

CHIEF TOMMY DAWSON, AUBURN POLICE: Mr. Leonard was charged with three counts of capital murder, two count offense assault, first degree. He will be processed into the Montgomery County Jail and held there for a while.

(END VIDEO CLIP)

BALDWIN: Leonard is accused of opening fire after a fight over a woman at a pool party Saturday near the campus at Auburn. A current Auburn player was among those wounded in that shooting.

A deadly day for Shiite pilgrims in Iraq. A string of car bombs killed 58 people, wounded some 156 others. Many of them were headed to a religious shrine in Baghdad for a Saturday observance. The attacks in 10 locations were the deadliest since January.

And two music greats are being honored on stamps being issued in the U.S. and France. American jazz great Miles Davis. Of course, beloved in France where he performed very frequently. Also, Edith Piaf, who's one of the few French popular singers to become famous here in the U.S. The two countries last issued stamps together in 1989 honoring the bicentennial of the French Revolution.

And here is something you don't exactly see every day. A small plane just parked on a highway near Ft. Lauderdale, Florida. Just sitting there. The pilot says he had mechanical issues, so he had to think quickly. He was the only one on board that plane.

And the Internet, really as we know it, headed toward this historic change. It is now expanding its naming system for web addresses. Domain names. So that means dot com now getting a bunch of new neighbors. Today the new list of proposed domain names are out. So here is a little preview for us all. Try dot pizza, dot dating, dot beer and even dot baby. More than 1,900 proposals were submitted. And you can see just about any name goes here. Let me bring in Julianne Pepitone. She covered the story for us.

And, Julianne, here's my first thought. With all these different, you know, endings of a URL, isn't this make searching the Internet just more of a pain?

JULIANNE PEPITONE, CNN TECH WRITER: Yes, it's strange, isn't it? We're so used to going to something like Google.com. that the idea of going to a site like search.google sounds really strange. But the idea is that the current market is really saturated. There are over 100 million domains on .com. So it's really hard to get a good domain name at this point. It feels like everything has kind of been snapped up.

So the idea is that by opening this up to everything that their -- to the right of the dot, you can have new things, like dot bank, dot web, dot baby, like you mentioned. And so the idea is that there will be some innovation on that point. Give people a little bit more of a chance. And it's also meant to be a really good marketing and branding play for companies as well.

So, for example, if you have a bank, like HSBC, they could tell their users, OK, if you're going to a site that's not dot HSBC, that's not a legitimate website. So there's some security measures there. You can see someone like Verizon, for example, could have their store locations at la.verizon.

BALDWIN: But why? I mean is it really for marketing purposes? It makes it easier for someone to remember? Or are we just really running out of website names?

PEPITONE: Yes, I mean the idea really is that we -- there can be some more innovation out there. There certainly are critics who say that this will be confusing. But, as you said, we've got 1,900 applications that were released today. So brands, at least, think that consumers won't be confused and that it will really add a lot for them.

BALDWIN: So, what about this, because, you know, look, this is what people are thinking, I know, because when you look at these different names, you also have dot porn, dot, you know, exposed, dot sex. I mean, that -- I imagine that just means, you know, that's really opening the Internet even, you know, to more explicit content.

PEPITONE: Right. I did actually speak with one applicant who is actually the owner of dot xxx, which is a top level domain that already exists. And we talked about why he applied for dot porn. And he said that he wants to really keep all of the explicit content on the Internet to very specific top level domains. He argued that that would help make it safer. That, you know, you're not stumbling on -- you didn't mistype some dot com web address and stumble on to something accidentally. If you're going to a site that's dot porn, you're probably pretty sure of where you're going.

BALDWIN: Yes. And then what about the people -- because I know people are creative and all for the wrong reasons sometimes. But what if somebody comes up with a, you know, a domain name that's like I hate so and so. There has to be some kind of panel, right, that goes through these line by line and if it's not appropriate, it doesn't make it.

PEPITONE: Yes. It's funny that you mention that, Brooke. Actually during a Q&A session with ICAN (ph), the Internet naming group that is running this expansion, someone from "The Guardian" newspaper in England did say, you know, what happens if someone bought dot stinks, then registers a site that says theguardian.stinks. That's really opening that up for some potential problems. And the ICAN executives said that, you know, there's a comment period for anyone to dispute some domains and say, you know, I don't think that's appropriate. ICAN does do a very throughout review. So it's possible that even though we had 1,900 application, it's very possible that some of them won't get through for various reasons, whether it's a complaint from the public or whether ICAN doesn't deem it worthy.

BALDWIN: Yes, you think? Julianne Pepitone dot thank you.

PEPITONE: Thank you.

BALDWIN: Coming up, President Obama takes some heat on his economic message and it's from an ally. Why the rajin cajun, James Carville, is warning his own Democrat, and how Mitt Romney is responding today.

(COMMERCIAL BREAK)

BALDWIN: You may be surprised where this comment is coming from. President Barack Obama desperately needs to change his message on the economy. It sounds like something Republican did say.

But it's actually from long time Democratic war horse, James Carville, a man who can usually be counted in the administration's corner. Here is what Carville said to ABC.

(BEGIN VIDEO CLIP)

JAMES CARVILLE, DEMOCRATIC STRATEGIST: I'm worried that when the White House or the campaign talks about the progress that's being made, people take that as a signal that things are fine.

And people don't feel out to believe that. They want to be reassured that he understands the depth of the problem and he has a plan to deal with the deterioration of the middle class.

(END VIDEO CLIP)

BALDWIN: In other words, it's the economy stupid. Stay away from remarks like this.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: The private sector is doing fine.

(END VIDEO CLIP)

BALDWIN: Carville released a memo with two Democratic pollsters with some dire advice from the president. This is from the first page saying, quote, we will face an impossible head wind in November.

If with do not move to a new narrative, one that contextualizes the recovery, but more importantly focuses on what we will do to make a better future for the middle class.

That may be the last thing the White House wants to hear right now ahead of President Obama's major speech on the economy tomorrow. Then again, maybe he's not worried.

He told a crowd in Philadelphia last night that he doesn't believe voters are following all the ups and downs of the campaign. Either way you can be sure that Mitt Romney's camp will be listening. Here is what Romney told a crowd of CEOs today. (BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I think you are going to see him change course when he speaks tomorrow and where he will acknowledge that it isn't going so well. And he'll be asking for four more years so instead of three years and he's out, he wants four more years. My only wish that he will speak eloquently, but the words are cheap.

(END VIDEO CLIP)

BALDWIN: Well, we'll have to wait and see whether James Carville's advice had any impact on President Obama when he gives that speech on the economy at a community college in Cleveland tomorrow.

An alleged victim testified that former Penn State Coach Jerry Sandusky sexually abused and threatened him and the threat involved his family. We're live outside court.

(COMMERCIAL BREAK)

BALDWIN: Two more accusers testify against former Penn State Football Coach Jerry Sandusky. One alleged victim identified as number ten testified that Sandusky sexually abused him and threatened he would never see his family again if he told anyone.

Then apologized and professed his love for the boy. Alleged victim number seven also took the stand. Let's go straight to Jean Casarez. She's a correspondent for truTV's "In Session." She was inside the courtroom.

Wow, I mean, what you were saying even to me yesterday about another accuser breaking down in tears. He's a grown man now. What did this alleged victim number seven say today?

JEAN CASAREZ, CORRESPONDENT, TRUTV'S "IN SESSION": Well, this is a little bit older. He is 25 years old and he really testified about three different locations, the car, riding with Sandusky, the bedroom of Sandusky's home and the showers at Penn State University.

He said first of all in the car and remember, he's 10 years old. He became 11 years old during this. He said Jerry Sandusky would put his hand on his thigh. We put that for many alleged victims. He said the hand would go up his pants touching his private area.

He said that he would just jerk and move to the side of the car to try to get away as best as he could. Then he said in the house, he would sleep in the bedroom upstairs. There was a mattress on the floor. Jerry would come in shortly before he went to sleep, would cuddle him from behind just holding him close. He would break away, said, I have to go to sleep.

Then at the showers, he said, he would soap his hair, come up from behind, and give him a bear hug. He would break away and say, I'm going to go to the other shower. He said Jerry suddenly wouldn't see him anymore. He didn't give him the football ticket that he gave all the other kids.

He thought he'd done something wrong. He didn't know what happened. So his mother called Dorothy Sandusky, said, why isn't Jerry doing for my son like he's doing for all the other kids? So then accuser number seven started giving football tickets again, but it was never the same.

He never told anyone. He said I didn't know how to tell my family. I put it behind me. Looks like I shut a door so I wouldn't remember anything.

BALDWIN: So as accuser number seven is giving all these details, you have Jerry Sandusky sitting in this courtroom, did he ever -- does he ever look away? Is he looking in the eyes of who's testifying?

CASAREZ: Brooke, he's focuses in so hard just listening to every detail. He doesn't look down, doesn't write notes, doesn't talk with his attorney, but on cross examination, this has been the biggest witness I think for the defense.

Because Joe Amendola questioned him on you didn't tell a lot of these things to the police, to investigators, to even the grand jury. You didn't say anything about touching your private parts.

In fact, you said the opposite to the grand jury. His response is my memory is coming back. I didn't want to face it. I didn't want to remember.

BALDWIN: Who is next to testify?

CASAREZ: Well, here's what happened. When I left for lunch, the prosecution was working with a multimedia presentation. Do you know what I saw? A big screen, I thought that interview that Jerry Sandusky did with Bob Costa, that was the still.

It was like on pause I saw in the courtroom. Any interview you do as a defendant. That can come before a jury if it's a statement against your interest.

BALDWIN: We all watched. So many of us watched and that entire interview, it was quite, quite lengthy right after this came out. Jean Casarez, thank you so much. We appreciate your reporting from inside the courtroom.

If you would ever wonder how hackers are able to breach even the best internet security, you are about to find out. CNN saw it was actually like inside the mind of a hacker after our cameras got kicked out.

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BALDWIN: I know you know this. I don't have to tell you. We go online. You're vulnerable and just assume you're being watched. Today, Homeland Security is revealing how hackers operate and how easy it is to pull off a cyber attack. I want to go live to CNN intelligence correspondent, Susan Kelly. So here's what I know about your day. It sounds pretty interesting. So you were allowed inside this room, this demonstration today, but the cameras were kicked out. What happened?

SUSAN KELLY, CNN INTELLIGENCE CORRESPONDENT: Right. That tells you how worried they are and how sensitive something like this is. I'll tell you what. I mean, they didn't want people to see some of the personal information that they had and this demonstration they set up.

But I think they also didn't want people to know just how easy it was. Now you see the two screens there, Brooke. One was set up to be the attacker and the other the victim. What happened after they kicked our cameras out and closed the doors is they ran through a demonstration of how these things actually work.

Something called a phising attack is the most common kind of cyber attack that's used against you and me, but also businesses, small businesses and companies.

And what they do is a little bit of research on you first. They go to your social networks. They find out who your boss is, for example. They craft an e-mail to you from that person. It looks like that person and attach something to it.

Now people are always saying don't open attachments if they don't know what you are. They did. They tricked someone from DHS today, of course, it was a demonstration. He opened the attachment and literally within seconds the person was able to download everything on his computer.

Looked through files, change files, upload new information and they had comments in this one from Secretary Napolitano that they were just using it as a demonstration.

Imagine being able to go into someone's computer and change the speech minutes before it happens. I mean, it's almost movie like and a little scary frankly. They can also turn on your web computer and take a look at what you're doing at that moment and listen to your conversations.

BALDWIN: That's what scares me. I've heard that before. I mean, look how many people have those laptops with the camera and you think should I be closing this since I'm at home. Note to self, again, don't open attachments from a sender you don't know. What else can we do to product ourselves?

KELLY: There's a list of things that you should be doing. One is always, you know, take that extra time to be sure that you are not clicking on attachments if you don't know who they're from and make sure you do know who they're from by looking at the e-mail address, not just the alias name.

That's a little trick that they use to kind of throw you off. Also think about your social network information and all the stuff you're putting out there about yourself.

How easy is it for them to find out who you boss is, your mother, your brothers, your friends. Get your security patches. It's probably a huge one.

You know, Microsoft, a lot of these giants who create the software put out patches regularly. You need to be aware of what those are. They have web sites you can go to and Google this information.

Make sure you have those patches on your computer. This is what I thought was really interesting. Change up your passwords. They were able to within minutes go through a dictionary and find people's passwords.

If your password, Brooke, is one that's in the dictionary and that's all it is, no numbers or capitals or anything like that, you're going to be in trouble. Not only do they find that password within seconds, but that's likely pass you use for a lot of your other accounts and that's also very scary.

BALDWIN: Yes, it makes it easy to remember though, doesn't it?

KELLY: It does, but then it makes it easy for them to get.

BALDWIN: It's a great reminder. We all need to be cognisant that it is also easy to be hacked. Susan Kelly, thank you so much.

And just a heads up, Susan is part -- national security blog, which is by the way, just finished its first year. Happy birthday, guys. If you are interested in this topic or anything else related to terrorism, to intelligence or the military, go to cnn.com/securityclearance.

A routine police say caught on cam becomes anything but routine when a toddler is thrown. Look at this, from the SUV, you guys see this dramatic incident play out next.

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BALDWIN: I don't always like to use the word shocking. It almost has this numbing factor if you say it too much. But there really isn't a better word here to describe this police dash cam video we're about to show you. Just wherever you are, whatever you're doing, stop and watch this.

You saw the car flip. We're spotlighting this for you. This is a night time police chase. It's nothing unusual about that. But you saw as the SUV swerves and rolled. We have highlighted it for you so you can see the toddler on the ground.

She was in that SUV as it rolled. Tossed out of the car and toddled around. She got up. Ultimately begins to move. Eventually a woman, the child's 16-year-old mother runs out, grabs the baby.

Take a closer look here because police in Lubbock, Texas, they say four teenagers were inside that SUV, a stolen SUV. Here it is and there she is. She's fine health wise. Listen here as police they voice their surprise with this little girl being fine.

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UNIDENTIFIED MALE: I think anybody who looked at that video would be shocked to see the kid stand up and be walking around and be OK. It's pretty miraculous that it's just minor injuries that the child sustained.

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BALDWIN: Miraculous, that's obviously the great news here, but not great is that these teens were fleeing a robbery when this chase began. All four we now know are under arrest, charged with several offenses including aggravated robbery and injury to a child.

Jasper, Texas, a town known for the dragging death of a black man some 14 years ago. It's since named a black police chief. He now has been fire and people are questioning if race is behind it. We're going to ask him why he thinks this happened.

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BALDWIN: Got a troubling story for you today out of Jasper, Texas. Jasper, Texas just about 130 miles northeast of Houston. Jasper's white majority voted just this past Monday, 4-1, along racial lines to remove the town's very first African-American police chief.

Why? Well, that is a matter of much dispute. Joining me now is the man in question here, fired police chief. He's accompanied by his attorney, Cade Bernsen. Gentlemen, welcome.

Mr. Pearson, I just want to begin with you. What exactly was the reason given to you for your removal?

UNIDENTIFIED MALE: Brooke, there was no reason given.

BALDWIN: No reason whatsoever?

UNIDENTIFIED MALE: No, ma'am. I didn't get a reason.

BALDWIN: Did you ask for a reason?

UNIDENTIFIED MALE: I never had the chance to.

BALDWIN: Can you explain that?

CADE BERNSEN, FIRED POLICE CHIEF'S ATTORNEY: Brooke, thank you for having us on, by the way. The chief was never given an explanation as to why he was fired. They basically called him up in front of a standing room only crowd, blacks on one side.

Whites on the other and proceeded to just pepper him with questions. Talking about was he over budget a couple thousand dollars here. Did he take an extra vacation day there? BALDWIN: Let me just jump in. If those were some of the questions peppered toward him, did you take too many vacation days? Did you not show up at enough crime scenes as was alleged on Monday?

UNIDENTIFIED MALE: No, ma'am. I did not.

BALDWIN: Let me just tell our viewers. We reached out to the mayor here in Jasper to try to understand their side of the story, and we have not yet heard back. We will keep trying.

Meantime, just a little bit of context for our viewers. If the name of this town Jasper, Texas rings a bell, perhaps you remember, this was back in 1998 when this African-American man by the name of James Bryd was dragged to death behind a truck.

Three white men were convicted in the killing. Two received the death penalty. One got life in prison. Also, there are report has the town has worked hard since that horrendous incident to reach racial harmony.

But then that started falling apart over the last summer because of the appointment of you, sir, Mr. Pearson as police chief. Cade, let me ask you this one. Tell me about that, the city council recalls.

BERNSEN: Let me say this is a tremendous opportunity for the chief, his family and for people of Jasper to get their story out. We've had a very difficult time doing that.

Basically, the chief is the first black chief of police in the history of Jasper, and for those people that live in the south, being able to have a person in the chief of police position or in the sheriff's office is symbolic. It's very important.

When he was selected to be the chief of police, he was the most qualified candidate. He's got over 22 years with the Department of Public Safety in Texas.

BALDWIN: I know he worked fire and a state trooper. Forgive me for interrupting. I want to hear from Mr. Pearson. You're giving me sort of tersed answers when perhaps why you were fired. Are you angry? Are you frustrated? What more can you tell me here?

UNIDENTIFIED MALE: I am frustrated. I'm hurt. I'm very, very disappointed.

BALDWIN: OK.

BERNSEN: Brooke, in fairness --

BALDWIN: Final thought.

BERNSEN: Final thought -- that this kind of racism is allowed to persist because no one will shed a light on it and that is why this story deserves national attention. Two weeks ago marked the 14-year anniversary of when James Byrd Jr. was dragged to death. Race problems still exist in Jasper. And the national community needs to call for action to prevent this type of stuff.