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Obama Speaks to Latinos; Day Two Of Sandusky Jury Deliberations; Mixed Verdict In Priest Sex Trial; Anxious Egyptians Wait for Outcome; 15 Big Banks Take Credit Hit; Flood Damage In Duluth; Money, Drugs, Power And A Manhunt

Aired June 22, 2012 - 14:11   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: President Obama once again re- introducing the familiar phrase, yes we can, (SPEAKING IN SPANISH). That was something that he said often in the 2008 presidential campaign. That was the last time he was before this group. This is the largest Latino group convention of politicians and policymakers. Clearly a very important constituency for the president. He said we are all one. We need each other. He talked about the importance of diversity. He made some parallels between the Latino community and the African-American community, reminding them that this is a country that -- made up of hard workers. He also said as well, it was the right thing to do, meaning his health care reform, pushing for the Dream Act.

And not even mentioning his opponent by name, Mitt Romney. He only said that he was the speaker from yesterday, taking a swipe at Mitt Romney saying that he did not support the Dream Act. That is something that is very important to many in the Latino community.

And, finally, he said, this is a place where you can make it if you try. He repeated that several times, got several standing ovations. It is clear that the speech today from President Obama and the one from Mitt Romney yesterday underscores the importance, the critical importance to the Latino community in determining who's going to be the next president of the United States.

We're going to have more with NEWSROOM and Don Lemon after the break.

(COMMERCIAL BREAK)

DON LEMON, CNN ANCHOR: Hello, everyone. Welcome aboard. I'm Don Lemon. Brooke is off today. We have a very busy two hours ahead for you. Here's what we're working on.

The jury is still deliberating and already another bombshell allegation against Jerry Sandusky. Now, his adopted son says he too is a victim.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Not only was he silent, but in some ways he was the accessory to abuse that everybody was accusing others of being for so long.

(END VIDEO CLIP)

LEMON: Plus, hundreds of homes destroyed. Entire roads wiped out. Parts of Minnesota today waist deep in water.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We're pretty much stranded here from the north.

UNIDENTIFIED FEMALE: When it gets up to this line, we're moving everything out of the house and we're done.

(END VIDEO CLIP)

LEMON: Historic flooding takes a city by surprise.

And, her taunting by school kids touched the nation. Now the dough is rolling in for this bullied bus monitor.

We're going to start with the Sandusky trial where we're awaiting something. Some new information, if not a verdict. They sat through days and days of horrific testimony. Now jurors in the Jerry Sandusky case have a decision to make, guilty or not guilty. Deliberations are in their second day. But one of the biggest bombshells in the case dropped after the case went to the jury. Sandusky's own adopted son, Matt, now says he is one of his father's victims. Lawyers for Matt Sandusky says he was ready to testify if he was called. Sandusky's wife and three of his other adopted children showed up in court today to support the former Penn State coach. Meanwhile, yet another alleged victim is coming forward. His name is Travis Weaver. He tells NBC that Sandusky started abusing him at the age of 10.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: If Jerry Sandusky were sitting right here --

TRAVIS WEAVER, ALLEGED SANDUSKY VICTIM: I'd punch him in his mouth.

UNIDENTIFIED FEMALE: Would you say anything first?

WEAVER: No. There'd be no reason to say anything. He knows what he did. I know what he did.

(END VIDEO CLIP)

LEMON: Well, it seems that even if we get a verdict today, this case isn't over. Far from over, as a matter of fact. Let's go do CNN's contributor, Sara Ganim. She has been on this case for us from the very beginning.

So, Sara, the jury is sequester. So they don't know about any of these new allegations by Sandusky's son, do they? SARA GANIM, REPORTER, "THE PATRIOT-NEWS": That's right. Actually, Don, it was interesting, is the last thing they heard about Matt Sandusky was that he might actually testify on behalf of the defense for Jerry Sandusky. But it was during opening statements and he was sitting in the part of the courtroom reserved for family and friends of Jerry Sandusky and the defense attorney told the jury, you might hear from him. He might, you know, take the stand and support his father. That same day, he broke his sequester. He went into the courtroom, heard some testimony and left and was never seen again in court sitting with the family or listening to any testimony. Ten days later, the next thing we really heard about him, from him, was through his attorney that he was, in fact, he says he was, in fact, a victim of Jerry Sandusky.

LEMON: Well, what an interesting twist. So we are waiting. Everyone is waiting outside the courthouse there. Sara, if a verdict is not reached today, what happens this weekend?

GANIM: It's up to the jury. The judge told them that because they're sequestered now and they can't have cell phones, they can't have televisions, they can't have any contact with anyone, they're -- basically when they're not in that deliberation room, they're in a hotel room sitting there by themselves looking at the clock. So he said they get to set their own schedule. And that means that, you know, like last night we were here until about 9:30 at night. And they started their day at 9:00 in the morning so they can have, you know, long or short of days as they wish and they can go on the weekends if they want. The schedule's really up to them.

LEMON: Yes. If it happens, we'll get back to Bellefonte, Pennsylvania, and Sara Ganim.

Sara, thank you very much. We appreciate that.

An Egyptian news agency says their country will have a new president this weekend. But don't tell that to the thousands of people right there.

(COMMERCIAL BREAK)

LEMON: And the breaking news here on CNN. A partial verdict has been reached in the trial of two Philadelphia priests. One accused of the attempted rape of a young boy. The other accused of covering up sexual abuse. Sarah Hoye has been covering this story, this trial for us, and she joins us now.

So, Sarah, what's the verdict? It was a partial verdict. What does that mean?

SARAH HOYE, CNN CORRESPONDENT: That is correct. So what we know right now is that Reverend James Brennan, the individual who was charged with attempted rape, they are hung on all charge against him. He was charged with attempted rape, as well as endanger the welfare of a child. So that has been hung with him. When it comes to the monsignor, that highest ranking cleric ever charged by U.S. prosecutors, he was found guilty on one count of endangering and not guilty on another count of endangering, as well as conspiracy, we it comes to the defrocked priest, Edward Avery.

So we have that partial verdict. Reverend James Brennan, they're hung on him. And when it comes to the Monsignor Lynn, he is found guilty on one charge of endangering.

Don.

LEMON: All right, Sarah, just hold on right there. Just want to make sure I clarify this for our viewers. Again, a partial verdict reached in the trial of two Philadelphia priests. One is accused of attempted rape of a young boy, the other accused of covering up sexual abuse. And what is this (ph), Monsignor William Lynn was convicted on one count, guilty on one charge of endangering, found not of conspiracy and not guilty of another endanger charge.

And then, Sarah, the jury is hung, as you said, on charges against Reverend James Brennan, charged with the attempted rape of a 14-year-old boy in 1996 and one count of child endangerment. What do we know? What happens next, Sarah?

HOYE: Well, we have to wait on word from the judge. Potentially since the jury is hung on Reverend Brennan, he could potentially walk out of court today and continue on with his life. Then the next question comes, what will happen in terms of his status within the catholic church. Will he be defrocked. Will he be laiasized (ph), because right now Reverend Brennan is on leave.

And when it comes to Lynn, once again we have to await word from the judge as to what will happen next. Will they do another trial for that one charge? Where will he go? Where will he stay. And what will his status be with the catholic church?

So we do have this breaking news here. And we have to await some more word coming from that courthouse in Philly.

LEMON: And Sarah Hoye will be covering it and we'll have it here on CNN. Thank you very much, Sarah. We appreciate that.

We want to take you now to Egypt. The semi-official news agency Al Ahram says Ahmed Shafik, the former prime minister, will be named Egypt's new president. But the Muslim Brotherhood candidate, who won most of the votes, is claiming victory as well. Meanwhile, the army has seized most of the power and threatens to crack down on protests with an iron fist. Thousands of anxious Egyptians have taken over Tahrir Square again waiting for the official word. So we want to go now to our Ben Wedeman waiting along with them as well there.

Ben, what is the mood there?

BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, first of all, regarding that report in Al Ahram online, a semi-official news source, we need to take it on with a pinch of salt because we've heard a variety of claims coming from both of the two candidates. And it's similar to the reports that Hosni Mubarak was clinically dead, as reported on the official Egyptian news agency, which, of course, turned out to be somewhat of an exaggeration. Somewhat premature to say the least.

What we have right now are tens of thousands, I dare say perhaps more than a hundred thousand supporters of the Muslim Brotherhood candidate, Mohammed Morsi. They have come out to protest the latest moves by the Egyptian military to make sure that if Mohammed Morsi is indeed the president, the next president of Egypt, he won't have much power. Many of these people claiming that the military is, in effect, hold off a soft coup d'etat to take away as much power as possible from the next president of Egypt.

So, in a sense, confusion continues to reign. The results of the presidential runoff elections of last weekend were supposed to be announced yesterday. That was postponed as the presidential election commission said they needed to investigate more than 400 complaints or claims of voter irregularity. At this point, we have no idea when the actual results of this election will be announced.

Don.

LEMON: So, Ben, listen, the military in power now. The question is, whoever wins, is the military likely to surrender power?

WEDEMAN: Well, in a sense, regardless who wins in the election, the military will still have de facto power in the country. If you'll recall, Thursday before last, the constitutional court ruled that parliament should be dissolved. Parliament, of course, was dominated by the Muslim Brotherhood and it was the military council that has adopted legislative powers.

Now, in theory, the military is supposed to hand over all power to civilian government by the beginning of July. Now, nobody thinks that's going to happen. Now it appears we are in quite a -- sort of a tug of war between the Muslim Brotherhood and its allies and the military on the other. And it's very difficult to say who's going to come out on top.

Don.

LEMON: All right, Ben Wedeman in Cairo. Thank you very much, Ben.

Fifteen national and international banks are downgraded. Here are some of the names you know and might use. Bank of America, Citigroup, JP Morgan Chase and Goldman Sachs. We're keeping a close eye on the New York Stock Exchange. You can see now it's up about 62 points. Alison Kosik is going to join me next with a full breakdown.

(COMMERCIAL BREAK)

DON LEMON, CNN ANCHOR: -- we are keeping a close on the New York Stock Exchange. It's up about 62 points. Alison Kosik is going to join me next with a full breakdown.

(COMMERCIAL BREAK)

LEMON: They maybe too big to fail, but today they are paying a price for it. Moody's investor service downgraded credit scores on 15 major banks to new lows. Five are here in the United States, Bank of America, Goldman Sachs, JPMorgan Chase, Citibank and Morgan Stanley.

I want to bring in Alison Kosik at the New York Stock Exchange. Alison, not good news, why did Moody's do this?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: OK, so I'll give you the answer here, Don. You know, what this is about? This is about how stable the world financial system is. It's not very stable right now.

Moody's thinks that these banks that you've just listed have a lot of exposure and volatility and the risks that come for being, you know, these global financial players.

Meaning all those exposure to the eurozone, where all those big debt problems are and that risk needs to be reflected in their credit ratings -- Don.

LEMON: All right, so then what is this downgrade mean for everybody watching? Because most people have either accounts with these banks or these banks touch them in some way. What does it mean to everyone who is watching?

KOSIKr: Here's what interesting. It's really, if you're a customer, it's really not going to change your day-to-day banking. But what they are trying of doing it is it makes it more expensive for the banks to do business. So it could raise their borrowing cost.

So what could wind up happening is we could see those higher costs being passed onto us. They have already been doing that with more fees. You know, charging for our checking accounts, requiring minimum balances.

And guess what? They could add new fees. Don't be surprised. You know, if they are businesses are hurt by these downgrades. It could also make it harder to get a loan. Even though it's really hard to get one right now, it could make it even harder because what the banks may do is tighten lending.

Tighten lending standards even more for their customers and have to charge higher rates for loans, for mortgages and for small businesses.

LEMON: I have a question for you there at the stock exchange. Quickly if you could tell me why aren't these stocks taking that?

KOSIK: Well, because yesterday, if you remember, there was a huge sell off. The Dow tumbled 250 points. So what you saw really happening was Wall Street reacting sort of selling on the rumor and now buying on the news.

What happened was the downgrades happened after the closing bell. The rumors were flying before the closing bell. Everybody sold off and now that it's happened everybody is kind of breathing a sigh of relief that it's happened and it's not as bad as they first thought.

LEMON: All right, I don't have the hair. I can't do that. Thank you, Alison Kosik.

KOSIK: You got it.

LEMON: We appreciate it. A refugee living in America gives up his dream so he can return to his homeland and help children who've lost their parents today.

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(BEGIN VIDEOTAPE)

T. JACKSON KAGURI, COMMUNITY CRUSADER: HIV/AIDS is striking like a machete in a cornfield killing men and women leaving 1.2 million children orphaned. The grandmothers stepped in and closed that gap. Some of them up to 14 children to raise.

I was born and raised in Nyaka Village. I moved to America. I went to Columbia University. I came to visit. I looked in the eyes of women who carried me as a child and said now is the time to also give back.

I am T. Jackson Kaguri, the Nyaka AIDS orphans project. Who is happy this morning? We have started $5,000 that my wife and I saved for a house. We provide free education children who are orphaned by HIV/AIDS.

We provide them uniforms, health care, the library. We started giving them meals. We teach the grandmothers skills so they can support themselves. Eleven years later, this project has produced close to 600 students and helps about 7,000 grandmothers.

I feel humbled looking in the faces of children smiling focused on what their dreams are going to be.

(END VIDEOTAPE)

LEMON: We should tell you that Jackson Kaguri was nominated by a viewer just like you. So if you know someone who is making a big difference in your community, go to cnnheroes.com to nominate them. Your nomination could help them help others.

Heavy rains caused massive floods in Minnesota. State of emergency is in effect. Roads are closed. Homes washed away and some zoo animals died in the floods. We'll talk with the zoo director. That's next.

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LEMON: You're going to see the pictures in a moment. But what a mess they have on their hands in Duluth, Minnesota. Flash flooding taking out much of the city's infrastructure, just ripped it to shreds.

Here's a video look at that. Duluth's mayor puts the damage at up to $80 million. That's infrastructure alone, roads, stores, sidewalks, parks. Some are saying it looks as though an earthquake hit the place.

They are talking months and months of repairs, lots and lots of money. We have seen the estimates even higher than what the mayor is saying as high as $100 million.

As we have said, a huge mess there in Duluth. Now as the flood waters grow from Tuesday night into Wednesday, several large animals escaped their enclosures at a local zoo.

A motorist snapped this picture. Look at that, a seal loose on the street. Imagine coming across that. Another seal was found in a creek. A polar bear breached it confinement and had to be tranquilized.

In addition to all of that, at least 11 animals died including a sheep, goat, donkey and an owl. So joining us now from Duluth is Peter Pruett, the zoo director of Animal Management.

So Peter, thank you for joining us. First of all, how is the seal?

PETER PRUETT, LAKE SUPERIOR ZOO: Our seal, Feisty and Vivian, and polar bear, Berlin, are now down at the Komo Zoo in St. Paul. They are doing great. We got them early Wednesday morning. Komo was --

LEMON: Peter, we seemed to be having a problem with your Skype connection. Hopefully, we'll get it sorted out. But Peter Pruett is in Duluth, Minnesota.

Of course, they had some heavy rains and flooding come through. You can see they've lost a lot of animals. OK, so listen. Give us the overall condition of the zoo and the animals? You told us about the seal and a couple of the ones who were in danger. What about the rest of the zoo?

PRUETT: Absolutely, 100 percent safe. The only, once again, the only loss we had was within the barnyard. Our polar bear and seals flooded completely. They are now in Komo.

We pulled a couple of our brown bears and lions into our animal care facility just as a precaution. We just finished with a structure engineer to look at those facilities. They are sound. We will be returning them on their exhibits by Monday and Tuesday.

LEMON: So Peter, listen, we have seen a report, and I've read that the zoo isn't staffed 24 hours a day, 7 days a week. We saw the seal just came across it.

People had no idea that the animals escaped. These animals were alone. There isn't any off-site monitoring, video relays or anything of that nature. Is that true, and if so, that's a problem.

PRUETT: Absolutely. I've been in discussion with our CEO for two, three years about 24 hour security and we've been working on ways to do that. Our buildings are monitored through an alarm system, but we are, it's always a little too late.

We have been in the process of working on getting video cameras throughout the whole zoo. You are right. That is a concern I've been working with our CEO on for quite some time.

LEMON: Now, you know that PETA is upset with you guys and wants this to be looked into. How do you feel about that?

PRUETT: Absolutely. The thing is this, right now, we are working with multiple organizations, the city, Minnesota DOT, the Minnesota DNR. What happened is this was not natural flood. Yes, we had a tremendous amount of rain.

However, there was an obstruction of our downstream. The level of water that we saw here Wednesday night would not have happened without the obstruction. So we are investigating how we flooded as bad as we did.

LEMON: All right, Peter Pruett is with the Lake Superior Zoo in Minnesota. Good luck to you guys. OK, thank you.

PRUETT: Thank you.

LEMON: All right, moving on now. Death row inmates face either electrocution or lethal injection. Now one State Supreme Court strikes down the law on how executions are carried out. What happens next? Our Jeffrey Toobin is going to break it down for you.

And a big arrest involving one of Mexico's most notorious drug cartel, would help Mexico nab its most wanted man.

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LEMON: All right, follow me here, pay attention, a lot of interesting names and a lot of interesting twists in this next story. His nickname translates into Shortie, but the biggest fish in the drug world he is.

I'm talking about Joaquin "El Chapo" Guzman, head of the Sinaloa drug cartel, Mexico's most wanted man, one of the world's most powerful people that's according to "Forbes" magazine.

He's the world's richest drug dealer with four years running on "Forbes" list of billionaires. El Chapo is in hiding, but the Mexican government may be getting closer to reeling him in with the arrest of this man.

This is believed to be Jesus Alfredo Guzman known as "El Gordo" or "The Fat One." He's believed to be "El Chapo's" son, believed to be.

Fernando Del Rincon is here, an anchor at CNN En Espanol. You said to me you came in and said, Don, this story is crazy. Why?

FERNANDO DEL RINCON, ANCHOR, CNN EN ESPANOL: It is, Don. It is because yesterday when they presented him, the authorities, the Marines, this guy, I don't know if his Jesus Alfredo Guzman or Felix Beltran Leon.

They said that he was the alleged son of "El Chapo" Guzman. He's the alleged son. They never confirmed it yesterday. I actually had that doubt in my mind.

This morning, the family of "El Chapo" is going to give -- they say they are going to give a press conference because this guy is not related to them. That's what they are saying.

Also, his lawyer presented a credential that comes with a finger print with another name saying that he's not -- Jesus Alfredo was Mon Salazar, he is Felix Beltran Leon, totally different.

LEMON: This is all a matter of, wait, your ID says one thing and they're not sure. And they are going to get to the bottom of it. So let's get to the bottom of how did this arrest go down? How did this go down to where they could get to the point to figure out who this guy is?

RINCON: OK, they work with actually the United States in terms of intelligence. They caught this guy. It was in the state of Jalisco. There was not a single shot fired. They caught him with $156,000, two rifles, two guns and four grenades.

The thing is, it's really confusing because of this information, if they were working with the U.S. in terms of intelligence and they got all this information and presented him as the alleged son, why they cannot confirm it and why would you present him as his son?

LEMON: All right, so listen, some people are not familiar with the drug lord King Guzman. So he is something -- he's young, right? He's something of character.

RINCON: Yes, he is. It's actually crazy story also. He's been married three times. There's another version saying that it's four. But actually his actual wife is an American citizen and a former beauty queen. They got married in 2007.

She was 18 years old. This beauty queen, Emma Cornel, gave birth, twins, here in the United States. They were not able to stop her giving birth on U.S. soil because she's an American citizen. So -- and, well, I don't know if they have been after her because of El Chapo.

LEMON: We have to run because the president spoke at the top of the hour. So we lost a lot of time in the show. But if this indeed his son, this is a huge deal in --

RINCON: It is. It is. They will be doing the same thing that they did in Colombia with Pablo Escobar trying to get his family. LEMON: Fernando Del Rincon, thank you.

RINCON: Thank you.

LEMON: -- from CNN En Espanol, thank you sir.

Middle school students bullied her, taped it all and put it on the internet. It has gone viral now and this grandmother is handling a huge out pouring of compassion with much grace.

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