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Soccer Player not Guilty Of Racism ; Airline Pilots Needed Now; Chatter On Rice As Possible Romney Vice President; Obama Reflects On First Term; Obama Campaigns In Virginia; Impact of JP Morgan Big Loss; DC Mayor Accused In Scandal; Downpours and Flooding Slam Houston: Debate Over Paterno Statue Grows; Mitt Romney's Departure from Bain Takes Center Stage; Gen. Michael Hayden Discusses Syria; Controversy over China-Made Team USA Olympic Uniforms
Aired July 13, 2012 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: Several stories caught our attention today, photos as well. Take a look here, India, these folk dancers performed during a travel and tourism fair in Calcutta. Participants from all over the world planned to travel across the country to show case their products and services to attract more tourists.
A controversial issue brings out the clowns in the west bank. Activists and Palestinians dressed as clowns. They marched past Israeli soldiers earlier today. They are protesting against Israel's controversial barrier in the west bank near Bethlehem.
I'm Suzanne Malveaux. This hour in the CNN NEWSROOM America's largest bank opens its books. It ain't pretty.
Fed up with fans, also the late Joe Paterno speaking out in the wake of the Penn State sex scandal.
And the outcry over teen USA's Olympic uniforms. Why one lawmaker wants them burned. Let's get straight to it. In London, soccer star John Terry has been found not guilty of racially abusing opponent Anton Ferdinand. The two had an exchange of words in a match last October. Now, Terry denied they were racially motivated.
The world needs airline pilots, believe it or not. One of the biggest commercial jet companies says in the next 20 years the air travel industry will need almost a half million more trained up pilots. Boeing sums it up this way. The global economy is growing fast and airlines are expanding just as fast to support it. But here is the problem. Analysts are afraid the pilot shortage will mean train is going to suffer and less qualified pilots are going to be hired too quickly to fill those seats.
Condoleezza Rice, she has said over and over she has no interest in being Mitt Romney's vice president, but that has not stopped many political observers from putting the former secretary of state high on the list of potential picks. Yesterday, speculation about Rice intensified when a drudge report revealed she could be at the top of Romney's short list. And as recently as last month, Rice said no again.
(BEGIN VIDEO CLIP)
CODOLEEZZA RICE, FORMER SECRETARY OF STATE: There is -- I'm saying there is no way that I will do this, because it's really not me. I know my strengths and Governor Romney needs to find someone who wants to run with him. There are many people who will do it very, very well, and I'll support the ticket.
UNIDENTIFIED MALE: That's a no or that's -- it's not going to happen?
RICE: It's not going to happen. And no.
(END VIDEO CLIP)
MALVEAUX: Senior Political Analyst David Gergen is with us from Cambridge, Massachusetts. David, I don't -- I don't believe it. I don't know. What do you think? I mean, if Romney picked Condoleezza Rice would that not be a game changer?
DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Well, it sure would create a lot of buzz just as even the rumor has created a lot of buzz overnight. Coming from Matt Drudge. And you know, it's conventional wisdom is on within the political community that Matt Drudge has a direct line into one of Mitt Romney's top people, Matt Rhodes, who is very, very close to him and Drudge and Rhodes are good friends. So all along, Drudge has had a pretty good take on it, so when he came out and said Condoleezza is at the top of the front runner list, everybody sort of woke up and said, wow, I thought this was off the table.
So, it could -- look, I think there's a long way. I think it's more of a trial balloon than anything else. I'm in that camp. The Romney people wanted to change the story. They want to get away from Bain, obviously, and get on to other things. But It's also true that they could stir things up and sort of put things up in the air and say, conservatives, are you willing to go with this or not? There are a lot of conservatives who think Condoleezza Rice is too close to George Bush Senior And not enough of a foreign policy type like George Bush Junior. And their -- they want the harder line.
MALVEAUX: Well, let's --
GERGEN: And she is also for abortion rights, as you know.
MALVEAUX: Right. Let's play this out a little bit, because -- I mean, she would be formidable. I mean, she is in the foreign policy experience as a former national security adviser as well as secretary of state. You do say she is pro choice, but let's think about this. In terms of making history, do you think that there would be the possibility where you would have a shift in moderates or a shift in African-American voters deciding that they would go for the ticket purely for the sake that this would be historic?
GERGEN: Well, coming off a week when Mitt Romney went to the NAACP and is clearly trying to chip away some African-American voters, she would add weight to that effort. But I think the critical thing here, Suzanne, is that she would help with women. And they are the -- they are the big, big, you know, question mark right now. It seemed early in the campaign that Obama would have a lock on women, but there have been some polls showing that Mitt Romney has closed in and even been ahead in one poll among women and Condi (ph) would help on that front.
She is also, I might add, a -- she is a very devout Christian and she's -- you know, she's a person not only of dignity but of a deep religious faith and coming out of her Birmingham experience both her mother and father and her -- it was her father and grandfather who were in the church as pastors. And that could make a difference as well. So, she -- you -- also, one last thing, Suzanne, she has an 80 percent favorability rating, 80 percent. There are very few people in the country who have that. So, there are a lot of reasons, but, at the end the day, most people in politics think the Romney campaign will be hard headed. They'll look to somebody probably from a Midwestern state because there are so many tossups in the Midwest.
MALVEAUX: And real quick here, how would she compare to some of the other possible V.P. picks when you're talking about Marco Rubio -- Senator Marco Rubio, who would track Hispanics. You're talking about Rob Portman, New Jersey Governor Chris Christie, former Minnesota governor Tim Pawlenty. Does she offer something that is inherently different than those four?
GERGEN: Yes. All of the candidates you just mentioned tend to bring strength in a particular electoral state that is important. Rob Portman Ohio. Obviously crucial state. Condi rice's strength is not bringing in a particular state that's important. Rob Portman, Ohio, obviously a crucial state. Condi Rice's strength is not bringing in a particular state. Her strength would be to over -- to improve the likability and attractiveness of the overall ticket. To give -- to lighten up Mitt Romney, just as Ann Romney has done so much to help Mitt Romney on the stump, Condi Rice showed when she went to a private retreat, she gave a fiery speech out there. Conservatives liked that. She could bring this kind of sheen and just sort of a sense of, oh, that's more impressive, I feel the country would be in good hands. That kind of appeal.
MALVEAUX: All right, David, do you want to make a wager?
GERGEN: I'm still betting against it, but let's see what the next week or two brings.
MALVEAUX: All right, we'll see what happens. We'll bring you back when you lose the bet.
GERGEN: OK. OK, Suzanne.
MALVEAUX: All right. Thanks, David.
MALVEAUX: President Obama setting sights on the key battleground state of Virginia where just moments ago, he began two-day swing through the state that helped him win the presidency back in 2008. Well, last night, the president sat down with CBS's Charlie Rose and reflected on his first term and his plans if he wins re-election.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The mistake of my term -- couple of years was thinking that this job was just about getting the policy right. And that's important. But, you know, the nature of this office is also to tell a story to the American people that gives them a sense of unity and purpose and optimism, especially during tough times.
(END VIDEO CLIP)
MALVEAUX: Dan Lothian at the White House. So Dan, one thing that struck me when the president was talking about that he needed to do a better job in inspiring people, but inspiration comes from other people. That is not something that you can necessarily control, and it wasn't something he necessarily did in the beginning of the campaign in 2008. That was something eventually happened, he inspired people. So, how does the president -- how does he address that?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well you know, I think it's much more difficult in this campaign, perhaps, than even in 2008 to inspire people, to energize people the way that he did in 2008. As you pointed out, it wasn't necessarily there at the very start. But the president was able to inspire especially young people who were the grass roots or the center of the grass roots effort that got him elected.
Most people believe that it would be much harder this time around for the president to recapture that, because, number one, he is president so he's not this fresh, new politician on the stage. He has a record to contend with. But the way the president hopes to inspire is by telling personal stories and you've seen that out there on the campaign trail recently talking about what he hopes to do, not only for middle class Americans but lifting those who are trying to get into the middle class.
And then you hear the president as well telling his own personal story, talking about the role that his grandparents played in his life, that his wife has -- the inspiration that his wife has given him and also talking a lot about his kids. Those are some of the things that the Obama campaign is using to try to provide some inspiration with hopes of wooing voters going into the election.
MALVEAUX: And we saw the last go around in 2008. We took so many trips to Virginia because that really was critical that he actually win that state and he made history in doing so. What are his chances this go around? Because clearly he has his eyes set on that state -- critical state once again.
LOTHIAN: Well, I won't predict whether he'll win or lose Virginia. But you're right. In 2008, the president did win there just by a slight margin over John McCain. And it was the first time that a Democrat had done that in decades. The Obama campaign, frankly, both campaigns are really pushing hard in all battleground states but in particular Virginia. What you've seen from the Obama campaign in recent months is this outreach to military veterans. Why is that important? Well, in a state like Virginia, you have a big population of military personnel.
So, he is appealing to all voters in that state but in particular to military veterans with the hope that he can pull off another victory there as he did in 2008. But it's not just Virginia, as I pointed out, where the president is today and will be there as well tomorrow in this big push in that -- in the commonwealth of Virginia, but also you see this push in battleground states like Ohio. He was there last week, he heads back again on Monday. You see him heading to Florida as well. That's where the race is neck and neck and in these battleground states, they'll ultimately decide who wins in November.
MALVEAUX: All right. Thank you, Dan. Good to see you. Have a good weekend.
MALVEAUX: Here's what we're working on for this hour.
(voice-over): Scandal in the D.C. mayor's office. Allegations of secret spending have even the people closest to him crying foul. We'll tell you what the mayor has to say.
It's a popular pill used by thousands of men to help prevent baldness. But Propecia may have sexual side effects that are serious and long lasting.
And these aren't your average seniors. A look back at 50 years at rock and roll with the Rolling Stones.
MALVEAUX: Welcome back. The largest bank here in the United States has come clean. Today, JPMorgan revealed the extent of a loss from risky trade investments. We are talking about a whopping $5.8 billion. It is almost three times as much as they had initially predicted. And now this stock, a staple in a lot of mutual funds, nest eggs, Alison Kosik, she's joining us from the New York Stock Exchange to talk a little about how this is impacting all of us.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: OK. Well, first of all, let's talk about the shares, because the shares are jumping a whopping six percent right now. And that's despite what you just said, Suzanne, that the $5.8 million trading loss is almost triple what the bank originally predicted.
And guess what? CEO Jamie Dimon says the losses could get much bigger but the way that Wall Street sees it is investors have heard from Dimon himself, not the speculation that's been coming out over the past several months, and analysts say the way the market sees it, the main reason you're seeing shares of JPMorgan jump is that there is this feeling that the worst is behind them -- Suzanne.
MALVEAUX: So, is this going to impact a lot of 401Ks?
KOSIK: Well, here's what's interesting. If you look closely at your portfolio, JP Morgan, most likely, is probably in a lot of your everyday investments. In fact, the total value of JP Morgan shares that mutual funds hold is more than $50 million. One expert we talked to tells us it's kind of tough to quantify what the impact would be, but the trading loss isn't likely to have a big impact on your savings. So even with JP Morgan shares sliding about 16 percent when all of this came to light, shares of JP Morgan are still up about 4.5 percent for the year. So while you may not be where you were, let's say, on May 9th, before we got all this news about what's happening with JP Morgan, you still may be making some money on JP Morgan stock.
MALVEAUX: That's not bad. What about the big banks? Wells Fargo? Bank of America?
KOSIK: You know what. It definitely puts these other banks under a microscope more. You know, financials, we saw them get hit hard when this trading loss first came to light. There were a lot of questions whether these other big banks may have the same situation and investors didn't know it yet. That we haven't gotten any indications that this is the case.
We are going to get a little more insight when some of these banks report their earnings next week. Citigroup on Monday. Goldman Sachs on Tuesday. Bank of America on Wednesday.
Now here's one place, Suzanne, where JP Morgan does have a leg up. One analyst tells us that the bank is not as exposed to Europe as some of its rivals who may take a bigger hit from the debt crisis there.
MALVEAUX: All right. Alison Kosik, thanks. Have a good weekend, Alison.
KOSIK: You too.
MALVEAUX: They say you should start investing early. Well, now there are 15 school children with a leg up on their future. We are talking about, Warren Buffet awarded them shares in Berkshire Hathaway. So the kids were finalists in Buffet's Grow Your Own Business Challenge. They received 10 Class B shares. At Thursday's close, those shares were worth close to $836 each. Good for them.
Serious allegations against the mayor of Washington, D.C. Why some city council members are now calling for Vincent Gray to step down.
(COMMERCIAL BREAK) MALVEAUX: Another D.C. mayor under investigation in a scandal. The latest involves the current mayor, Vincent Gray. Now prosecutors are looking into allegations that his 2010 campaign benefited from more than $600,000 in illicit money. Brian Todd is following the money trail.
(BEGIN VIDEO CLIP)
BRIAN TODD, CNN CORRESPONDENT: Mr. Mayor, did you know in January that money for your 2010 campaign had --
UNIDENTIFIED MALE: Sir, this is (INAUDIBLE) 911.
UNIDENTIFIED FEMALE: Can you talk about 911.
TODD: Well, we're allowed to ask.
TODD (voice-over): Embattled Washington Mayor Vincent Gray wants to talk about a new 911 service, but evades questions about a campaign finance scandal that suddenly engulfed his office.
UNIDENTIFIED MALE: Mayor Gray. Mayor Gray.
UNIDENTIFIED MALE: Mr. Mayor, could you answer questions about this 2010 money? Did you know?
TODD: Federal prosecutors are investigating what they call the mayor's shadow campaign in 2010, when secret money, they say, was not reported to campaign finance officials. An ally of the mayors, Jeanne Clarke Harris, admitted this week she helped steer illicit money from a wealthy businessman to the mayor's campaign. I spoke with U.S. Attorney Ronald Machen.
TODD (on camera): What kind of money are we talking about and how was it handled?
RONALD MACHEN, U.S. ATTORNEY, DISTRICT OF COLUMBIA: Yes. We're talking about over $650,000 that was funneled from a coconspirator's company to Ms. Jeanne Clarke Harris's company, Bell International. And then that money was used to buy campaign materials for the mayoral campaign. And it was unreported and unregulated.
TODD (voice-over): Separately, another source close to the investigation tells CNN, Mayor Gray learned from Jeanne Harris in January of this year that some of the money spent for his 2010 campaign was not properly reported. The source says Gray told Harris then to report it immediately. Contacted by CNN, Gray's attorney wouldn't comment, citing the continuing investigation. Prosecutors' documents don't indicate whether Gray knew of the alleged secret spending at the time it was happening. Mo Alathy (ph), who worked on Gray's 2010 campaign, says this.
MO ALATHY: I never saw any evidence during the campaign that he knew anything about it at the time.
TODD: For D.C. council member Mary Cheh, who went against many of her constituents to endorse Gray, that's not good enough.
MARY CHEH, D.C. COUNCIL MEMBER: Because people were acting in his name and for his benefit, they committed probably the biggest election fraud in the history of the district. And I've asked him to resign, to step aside, as an act of public service.
TODD: She is joined by two other council members. Gray says he's not resigning.
TODD (on camera): The swirl of scandal is nothing new in this building. Other D.C. mayors have been accused of either incompetence or outright corruption.
TODD (voice-over): Former Mayor Marion Barry was arrested in 1990 for crack cocaine use and possession when a sting operation targeted him and a former girlfriend at a hotel. He spent time in jail. Barry's successor, Sharon Pratt Kelly, built up huge budget deficits. More recently, former Mayor Adrian Fenty was investigated for steering contracts to a friend. He was cleared. I asked analyst Mark Plotkin (ph) what's tainted the D.C. mayor's office.
MARK PLOTKIN, ANALYST: I do think that if we had these higher positions that people could aspire to and attain, then the people at the starting level would be of a different caliber.
TODD: He's talking about the fact that Washington, D.C., has no real voting power on the floor of Congress, no senator, nothing to reach for after the mayor's office.
Brian Todd, CNN, Washington.
MALVEAUX: The Jerry Sandusky sexual abuse scandal has many people pointing fingers at the late legendary coach Joe Paterno. Some say the famous statue outside of Penn State's Beaver Stadium should come down. Paterno's legacy now taking a hit.
Don't forget, you can watch CNN live on your computer while you're at work. Head to cnn.com/tv.
MALVEAUX: We're getting a new report now. Significant flooding being reported out of Houston. Reports of three inches of rain in three hours in downtown parts. There are reports of folks being rescued from their homes. Want to bring in Chad Myers to talk about what on earth is happening in Houston right now.
CHAD MYERS, AMS METEOROLOGIST: Well, you know, we have 61 percent of the country in a drought. And then we have Houston where it just won't stop raining. Just -- could we just spread this out a little bit? This has been now three solid days of rain in Harris County, all the way up farther to the north. Even out toward College Station. And now over to Beaumont, Port Arthur. Some spots in the past three days have picked up 14 inches of rain. Doesn't matter where you are. Fourteen inches of rain that will run off will obviously get flooding.
And it's still raining in Houston right now. And so if you don't have to go outside, don't. Flash flood warning in effect until 2:45 local time. The waters will recede. Don't go out there and walk in the water. Don't go out -- let the kids play in the water. You don't even know what's out there. Sometimes manhole covers are washed away. You don't want to walk into a big hole that used to be a manhole cover. So just stay home and stay safe.
MALVEAUX: There are already reports of folks who have to be rescued in some cases, yes?
MYERS: You know, the water comes up and the water goes down. And some places up near Cypress, Cypress Creek, are now as high as they have ever been, or one foot from the record flood stage. And this is only a three-day rain. So this is pretty amazing stuff.
MALVEAUX: All right. Thank you, Chad. Appreciate it.
MYERS: You're welcome.
MALVEAUX: Now to the latest fallout from a scathing internal report on Penn State's handling of the sexual abuse allegation against Jerry Sandusky. Nike says it's renaming its Joe Paterno Child Care Center at the company headquarters in Oregon. Nike's president and CEO Mark Parker says he decided to change the name after an internal investigation blamed Paterno and other top Penn State officials for keeping quiet about the Sandusky abuse allegations.
There's also a growing controversy over a statue of the legendary Penn State coach outside the university's Beaver Stadium. Many people feel it should come down in light of the report's findings. Now protesters, they're turning out there. Even one of Paterno's oldest friends, former Florida State Coach Bobby Bowden, says that the statue should go. Now Bowden says every time they show this statue on TV, people are not going to remember the good things. Instead, they're going to think of the Sandusky scandal. Mark Brenan, he is with the website fightonstate.com. He joins us from State College, Pennsylvania.
So, Mark, you've been covering this, the story, the scandal, for quite some time. Where do most folks fall on this?
MARK BRENAN, FIGHTONSTATE.COM: You know, the statue obviously has become a symbol, I think, of Joe Paterno's legacy. We're running a poll online right now and about 60 percent of the Penn State fans who have responded want the statue to stay, 40 want it to go. I think the board of trustees was smart though in saying they're not going to make any quick decision on this. They're going to give it some time. And when they ultimately do make a decision, they're going to let the entire university community have its say. And I think that's pretty smart.
MALVEAUX: Mark, what does it say that one of Paterno's closest friends, more than 40 years, wants this statue down? BRENAN: Well, you know, his son said he wants it up. So I think there -- people are coming down on both sides of it. Laur Errington (ph), one of his great players, said that he thinks it should come down. You know, what does it say that Bobby Bowden said? That I think everybody has an opinion on this. And it's weird. It's become -- you know, I don't want to say it's an emotional argument, but I do think it's one of these things where people are trying to wrap their heads around everything that's gone down here and figure out what Joe Paterno's legacy is. And this has become a symbol of his legacy.
MALVEAUX: Why is it so important what his legacy is?
BRENAN: I think because of so much positive that he had done. And I think what people are trying to figure out is, how do you balance 60 years of positives against this one horrendous thing where he obviously didn't do as much as he should have? I'm not saying it should be a positive legacy. Obviously his legacy is going to be tarnished to some extent. I think it's going to be a while. We're going to have -- hear the testimony from the Curley and Schultz hearing. We're going to have to wait a little bit to know exactly what that legacy is. But for the time being, I think everybody's focusing on that statue. You know, they have security out there right now. People are going by. Some putting flowers. Some taking pictures. And I do think that's become that symbol.
MALVEAUX: What do they do? I mean everybody's focused on this statue here. You have a library. He funds this library. It bears his name as well.
MALVEAUX: You have a mural that is close by. I mean, do you start taking down all this stuff? Do you rename the library? What's the sense, the feeling on campus or in the community about all of these things that are in his name, in his honor?
BRENAN: Yes, and ridiculous as it sounds, Peachy Paterno ice cream is the big seller at the creamery on campus. These are all things people are trying to figure out.
I really -- the board of trustees, in my view, when this whole thing broke back in November, bumbled a lot of different things. But here I think taking the measured approach is the smart thing to do. I think making a knee-jerk reaction after yesterday's news would be the wrong way to go. I also think they're intelligent in saying when they do make these decisions they'll keep the entire university community involved in the decision-making process.
MALVEAUX: All right. Mark, thank you very much for your perspective.
Mitt Romney's role, specifically his departure from Bain Capital, continues to fuel a political firestorm. The questions and controversies still taking center stage.
(BEGIN VIDEOTAPE) POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hey everyone. Here on the "Help Desk" today we're talking about paying for college. A very hard thing for folks to do.
With me, Donna Rosato and Greg Olsen, our money experts.
Listen to this question that came in for you, Donna.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: My question is, what am I going to do about getting financial aid for the upcoming years? I've run out of people that will co-sign for loans and the federal government isn't offering me as much as I need.
(END VIDEO CLIP)
HARLOW: He's 23 years old. Donna, I know we've talked before and you said there is more competition for this federal money as well.
DONNA ROSATO, SENIOR WRITER, MONEY: That's right. It's a tough spot to be in. You max out your federal aid and there is not anything additional you can go to. The federal government isn't the only place that you can turn. There are private loans that you can get. It's going to be harder to do it without a co-signer unless you have a really strong track record with credit and a job. That might not necessarily be the case with someone who is that young. There are other options, too. A lot of states offer subsidized loans and they should look into that. There is an organization called the Education Finance Council, efc.org, that has a list of state subsidized programs. That is something they should look at.
MALVEAUX: Greg, private loans you want to be careful. That should be your last resort in terms of interest rates.
GREG OLSEN, PARTNER, LENOX ADVISORS: You should be. In fact, in this particular situation, I might recommend that maybe slow down the amount of credits that you take and work a little bit more. I am a huge advocate of people that are working in college. And those resumes really stand out when they come across my desk and we're hiring folks out of college.
HARLOW: That's a very good point.
Thank you, guys. Appreciate it.
If you have a question you want our experts to tackle, just upload a 30-second video with your "Help Desk" question to ireport.com.
MALVEAUX: Team Obama, Team Romney are in an all-out battle over Mitt Romney's involvement with Bain Capital. The latest back and forth was sparked by a newspaper report that says that Romney had an active role in the private equity firm until 2002. Romney insists he stopped making executive decisions at Bain three years earlier.
Jim Acosta has the details.
MITT ROMNEY, (R), FORMER MASSACHUSETTS GOVERNOR & PRESIDENTIAL CANDIDATE: What a day.
JIM ACOSTA, CNN POLITICAL CORRESPONDENT (voice-over): Mitt Romney has said repeatedly he left his private investment firm Bain Capital in 1999.
ROMNEY: I left that business in 1999 to help with the Salt Lake City Olympics and put them back on track.
ACOSTA: But the Bain Capital filing at the Securities and Exchange Commission first reported by "Talking Points Memo" and the "Boston Globe" and obtained by CNN shows Romney as the CEO and president of the company in 2001, two years after the GOP contender says he left the firm.
The Obama campaign pounced on the document as proof Romney has misled the public about his business career.
STEPHANIE CUTTER, OBAMA SENIOR CAMPAIGN MANAGER: Either Mitt Romney, through his own work and his own signature, was misrepresenting his position at Bain to the SEC, which is a felony, or he was misrepresenting his position at Bain to the American people.
ACOSTA: The Obama campaign says the SEC documents are crucial because they prove their attack ads are accurate in claiming Romney was at Bain when the firm advised companies on outsourcing.
(BEGIN VIDEO CLIP)
ANNOUNCER: Newly published documents show Mitt Romney's firm was a pioneer in helping companies outsource their manufacturing.
(END VIDEO CLIP)
ACOSTA: The Romney campaign insists the Obama ad is a lie because the Republican candidate had left Bain before the outsourcing work began. Democrats say it's Romney who is lying, pointing to the Massachusetts financial disclosure form from his time as governor showing he made more than $100,000 from Bain in 2001.
Roberta Karmel, an SEC commissioner during the Carter administration, says the government documents raised serious questions.
ROBERTA KARMEL, FORMER SEC COMMISSIONER: Either the statements in the SEC filings are untrue -- and as a former SEC commissioner, I regard that as a serious problem -- or they're true, but he wasn't really on the job. ACOSTA: In a statement to CNN, a Romney campaign official said "SEC regulations are complicated and do not square with common sense in this case. Although Governor Romney was not involved with Bain Capital after he left to head the Winter Olympics in 1999, he was still listed on some technical filings. This is nothing more than a quirk in the law."
Steve Pagliuca, a Bain Capital executive, who is also a Democrat, said, "Romney's name remained on some government documents due to his sudden departure from the firm," adding, "Mitt Romney left Bain Capital in February, 1999, to run the Olympics and has had absolutely no involvement with the management or investment activities of the firm or with any of its portfolio companies since the day of his departure."
(on camera): CNN has obtained, from a Democratic official, a brand new document filed by Bain Capital to the Massachusetts secretary of state's office in 2001. It shows Romney as the president of Bain Capital.
Jim Acosta, CNN, Houston.
MALVEAUX: And speaking of Romney, earlier an exclusive interview, I spoke to one of the members of his foreign policy team, former CIA Director General Michael Hayden. He was the keeper of secrets during President George W. Bush's administration. And we talked about Syria and other failing states around the world. And Hayden says he is convinced that Syria needs the attention of the United States and other world powers. Take a listen.
GEN. MICHAEL HAYDEN, FORMER CIA DIRECTOR: This looks like -- even from the outside the problem, this looks like a problem from hell. And I don't think anyone in or out of the administration believes what it is we're doing now is or will be sufficient. So I fear we and other members, responsible members of the international community are going to face some very difficult choices because, right now, right now, we have stasis between the government and the opposition at a horrific level of violence. That just can't be sustained.
MALVEAUX: What would you recommend if you were in that position today?
HAYDEN: First of all, as an intelligence officer, I'd get to know the opposition very, very well. Who are these folks, so we can have some reasonable confidence that what follows the Assad regime isn't as bad or even worse.
Frankly, I'm a little troubled right now, Suzanne. This is a bit, the Alawites, the Assad regime, against the Sunnis. And other groups in Syria are on the sidelines, the Kurds, for one, the Christians, the Drus (ph). That would trouble me that this has the earmarks of a sectarian conflict in addition to being one between democrats and autocrats. So caution is warranted here. And frankly, I think, over time, we'll see ourselves and our friends take more bold action.
MALVEAUX: General, do you think we should be militarily involved? Do you think we should have boots on the ground, any military U.S.?
HAYDEN: I -- I would be very reluctant to recommend that. I would be a voice of caution if I were at that table in the situation room, fully realizing that circumstances may make our choices very few indeed, and none of them being the kinds we would desire.
MALVEAUX: Nothing more patriotic than representing your country at the Olympic Games, right? But when American athletes cross the pond, their uniforms, not going to have the made in the USA label. It's got some folks crying foul.
MALVEAUX: Ready or not, London, here come the Olympic Games. Two weeks from today, the opening ceremony. Athletes, visitors already pouring into London. They're finding traffic jams, airport chaos, and more uniformed British soldiers pressed into security service than they had planned. One more thing, dismal London weather probably going to be a little nastier than normal throughout the games. Last month was the coldest June in London in more than 20 years. Rain is forecast now every day for the first week of competition.
America's finest athletes could march into London's Olympic stadium decked out in custom outfits designed by a major Olympic sponsor. Talking about Ralph Lauren. A lot of people, including the most powerful United States Senator, have a big problem with where the uniforms are made.
Here is more on that from Lisa Sylvester.
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): They are the pride of America, the U.S. Olympic team. But their 2012 uniforms? Strictly made in China. Ralph Lauren touts on its web site it's the proud outfitter of Team USA, but not everybody is happy with the company's sourcing.
SEN. HARRY REID, (D-NV), SENATE MAJORITY LEADER: I am so upset that I think the Olympic committee should be ashamed of themselves. I think they should be embarrassed. I think they should take all the uniforms, put them in a big pile and burn them and start all over again.
SYLVESTER: That was Senate majority leader, Harry Reid, going off on the U.S. Olympic Committee. Reid isn't the only one with strong opinions about it. U.S. fashion designer, Nannette LaPore, says this was an opportunity to help support U.S. jobs.
NANETTE LAPORE, FASHION DESIGNER: It is very disturbing because it completely could have been manufactured here in the United States, in New York City, or in any other city where there are factories that still exist. And it's frustrating for us because it's a cause we've been fighting for and trying to raise awareness, and trying to convince designers to move work back to our shores and stop off- shoring and start on-shoring. This would have been the perfect opportunity.
SYLVESTER: The U.S. Olympic Committee responded with this statement. Quote, "Unlike most Olympic teams around the world, the U.S. Olympic team is privately funded and we're grateful for the support of our sponsors. We're proud of our partnership with Ralph Lauren, an iconic American company, and excited to watch America's finest athletes compete at the upcoming games in London."
But free-market advocates like the Cato Institute say none of this is surprising. Globalization means manufacturing companies will be drawn to countries where costs are lowest.
DAN IKENSON, CATO INSTITUTE: When companies are able to outsource, they are able to produce most competitively, able to attend to their costs. When they can do that, they can deliver better quality, greater variety at lower prices for U.S. consumers.
SYLVESTER: But in the case of the U.S. official Olympic gear, anyone can buy. The items are not cheap. The Team USA ceremony beret is $55. The classic fit shirt? $89.50. The tie? $125. Men's double-breast blazer, $795. Belt? $85. The flat-front men's trousers? $295. And the shoes, $165.
MALVEAUX: This just in to CNN. The company that makes the uniform for the Olympic men's and women's rowing teams says their athletes will be wearing American-made uniforms when they compete. This is Team USA. It is the women's rowers. And the competition suits are custom designed, made by Boathouse (ph), a uniform company in Philadelphia. They're still going to wear the Ralph Lauren uniforms for the opening ceremony, like the rest of the American athletes.
And it's a popular drug used by millions of men who are losing their hair. Why Propecia may be causing men to lose their sex drive.
MALVEAUX: If you're sitting here thinking about popping a pill, you want to hear this story. A popular drug taken by millions of men to fight baldness could be causing major sexual side effects even after stopping taking the pill. Our senior medical correspondent, Elizabeth Cohen.
There is a new study out now. What does this reveal?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Let me step back and give some context to the new study. Years ago, Merck, which makes the drug, did a study, where they took 900 men and put them on Propecia. About 900 men. About 900 men, put them on a placebo. And they followed them to see if they had sexual side affects, among other things.
Here's what they found. The men taking Propecia, that 3.8 percent of them developed sexual problems like erectile dysfunction. The men take the placebo, only 2.1 percent developed sexual problems. You'll see both those numbers are tiny, but the difference between the two groups is statistically significant.
Now, we'll get to the current study. The current study looked at a 54 men on Propecia who were having sexual problems. And most of them were on a web site, most were on a web site for men on Propecia with sexual problems. 54, very small number. And what the study found was that about 90 percent of them were having sexual problems even after they stopped taking the drugs. So even after they discontinued, some of them apparently for years.
MALVEAUX: So what does the drug maker say about this study?
COHEN: The drug makers say there's no proof that sexual side effects last even after stopping taking the drugs. Here's their statement. "A causal relationship between Propecia and the sexual dysfunction after the treatment has been discontinued has not been established."
MALVEAUX: Who's actually funding the study? Because you always want to get to the bottom of that, whether or not there's any kind of bias.
COHEN: We always want to look at money. The big study, the Merck study that found that there was a low percentage of people with sexual problems, that was funded by Merck. This study that looks at the men with sexual problems and shows they lasted a long time, the doctor who did that study has taken money from law firms that are suing Merck because of sexual problems. So he has taken money from plaintiffs' attorneys who are suing Merck. He says he's taken less than $10,000.
MALVEAUX: So should men be concern about this drug?
COHEN: I'm going to answer this with something from the FDA. Here's what the FDA has to say. The FDA is very clear. They say that men have reported certain sexual side effects that have lasted after they stopped taking the drug.
Let's take a look at these. Men have reported getting erectile dysfunction, libido changes, ejaculation disorders, orgasm disorders while on Propecia that lasted after they stopped taking the drug. Men need to be empowered patients. Might this drug give you sexual problems? Maybe, maybe not. We can't answer that question 100 percent. But think. Do you want to take that possible risk so that you can have more hair on your head? That's basically the question that you have to ask yourself. You can go to your doctor and ask is there another drug I can take? Is there something else I can do? Otherwise, just live with thinning hair. That's another option.
MALVEAUX: All right. Elizabeth, thank you.
MALVEAUX: Appreciate it.
Whether you 16 or 65, you know them. It's the Rolling Stones. They are marking a musical milestone. We're going to take a look at some of their golden highlights as the band celebrates 50 years.
MALVEAUX: All right, so where is the best place to vacation? The current issue of "Travel & Leisure" magazine has a list of the world's best hotels based on reader's choices. Last hour, I spoke with Nilou Motamed, the features director of "Travel & Leisure," she highlighted the top trends and choices.
NILOU MOTAMED, FEATURES DIRECTOR, TRAVEL & LEISURE: People are looking for experiences. They're looking for things that feel authentic, and they want to live a little bit on the wide side. Our first winner is an incredible fire lodge in Tanzania. And I wore a little animal print to celebrate it. Going on a safari is one of those trips of a lifetime. This incredible property, it really is an experience of a lifetime, not only do you get world class guides, you get to be in a 350,000-acre private reserve. You see tons of animals. The setting is incredible. The hotel itself is beautiful. The tented camps are some of my favorite. It feels like these are kitted for royalty.
MALVEAUX: What about number two?
MOTAMED: Number two is also great and closer to home. This is in Darby, Montana, the Bitterroot Mountains, the Triple Creek Ranch. This is number-two world's best hotel according to our readers. What they love is that they can get outside and enjoy that beautiful mountain nature. You can fly cast. You can do every activity you can imagine, even going around by helicopter. But you can do something with the chef and learn to cook some of the local dishes, maybe something you caught. There's only about 23 cabins so it's very intimate, very charming and very lux.
MALVEAUX: It looks gorgeous there. Looks quite remote as well.
(END VIDEOTAPE) MALVEAUX: Several stories caught our attention today, photos as well. Take a look. In India, these folk dancers performed during a travel and tourism fair in Calcutta (ph). Participants from all over the world and they travel across the country to showcase their products and services to attract more tourists.
And a controversial issue brings out the clowns in the West Bank. Activists and Palestinians dressed as clowned and marched past Israeli soldiers today. They are protesting against Israel's controversial barrier in the West Bank, near Bethlehem.
A little rock and roll band you may have heard of celebrating a milestone. 50 years of the Rolling Stones. Kids, you can ask your parents about this. 22 studio albums, 12 live albums, one of the most grueling tours schedule in the business make them the single most commercially successful group in music history. Mike Jagger and Keith Richards met on a train platform back in 1961, formed the band. They've been together ever since.
And on the music scene, here's what's blowing up in Germany.
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MALVEAUX: Coming in at number one this week, is (SPEAKING FOREIGN LANGUAGE), singing their hit song (SPEAKING FOREIGN LANGUAGE), which translate to "Days Like This." The band is singing about their 30 years together.
Germany may be celebrating for another reason. For the first time, this is for-men-only parking spots, popping up in a small tourist town called Triberg. The parking lot there is labeling the cars with male and female symbols. The spots for the men are narrower and you have to back in your car into the space while the female lanes are wider and well lit. The town's mayor says women find parking trickier than men do.
I don't think that's right.
FREDRICKA WHITFIELD, CNN ANCHOR: I don't think that's right. I thought they were trying to make a statement about size at first. The guys are thinner, so they get thinner parking spaces?
I'm sorry, I'm just all in your --
MALVEAUX: I guess I got to go over to Fredericka, who's going to continue in the NEWSROOM because we're talking about these parking spaces.
MALVEAUX: I agree with you.
WHITFIELD: It sounds strange.
MALVEAUX: It is very strange.
WHITFIELD: But as long as everybody's happy. And as long as they're not dinging each other's cars --
WHITFIELD: -- that's what drives one nuts.
MALVEAUX: Maybe it works for them. I appreciate a little bit more space.
WHITFIELD: You have a great weekend, Suzanne.
MALVEAUX: You, too.