Return to Transcripts main page

CNN Newsroom

Obama: Short Term Deal May Work; Obama, House Democrats To Meet At 4:30PM ET; Obama To Nominate Yellen As Fed Chair; Boston School Buses Roll For Now; Dad Of Boy Who Sneaked Onto Plane Speaks; Christie Talks 2016 Speculation At Gubernatorial Debate; Off Duty Cop Arrested In SUV Attack; Cardless ATM Unlocks Cash Via Phone; Charity Helps Families Of Fallen Troops

Aired October 09, 2013 - 10:00   ET

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

CAROL COSTELLO, CNN ANCHOR: -- all because of that partial government shutdown. Among some lawmakers, the disgust over the stalemate is almost unbearable.

(BEGIN VIDEO CLIP)

SENATOR JOHN MCCAIN (R), ARIZONA: Today, shutdown outrage, military benefits denied to families for fallen troops. Shouldn't we as a body, Republican, Democrat, no matter who we are, shouldn't we be embarrassed about this? Shouldn't we be shamed?

(END VIDEO CLIP)

COSTELLO: This morning there may be just a glimmer of compromise poking through all the bombast and blame, but there's a lot of bombast and blame. Listen to the president and Republican speaker of the House trading perches in duelling news conferences.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: This morning I had a chance to speak with Speaker Boehner.

REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: As you all know I had a phone call with the president of United States this morning.

OBAMA: Having such conversations and talks and negotiations shouldn't require hanging the threats much a government shutdown or economic chaos over the heads of the American people.

BOEHNER: I have to say I was disappointed that the president refuses to negotiate.

OBAMA: Let's stop the excuses. Let's take a vote in the House. Let's end this shutdown right now.

BOEHNER: The president's position that, listen, we're not going to sit down and talk to you until you surrender. It's just not sustainable and not our system of government.

OBAMA: The greatest nation on earth shouldn't have to get permission from a few irresponsible members of Congress every couple of months just to keep our government open or to prevent an economic catastrophe.

BOEHNER: There's never been a president in our history that did not negotiate over the debt limit.

OBAMA: I'm not budging when it comes to the full, credit and responsibility of the United States.

BOEHNER: We can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means.

OBAMA: And this is the credit worthiness of the United States that we're talking about. This is our worth. This is our good name. This is real.

BOEHNER: I didn't come here to shut down the government. I certainly didn't come here to default on our debt.

OBAMA: We're not going to pay a ransom for America paying its bills.

BOEHNER: This isn't be me or frankly about Republicans. This is about saving the future for our kids and grandkids.

OBAMA: There's a way to solve this, it has to include re-opening the government and saying America is not going to default and it's going to pay our bills.

BOEHNER: It's time to have the conversation not next week, not next month. The conversation ought to start today.

OBAMA: We can't make ex-extortion routine as part of our democracy. Democracy doesn't function this way.

BOEHNER: What the president said today was, if there's unconditional surrender by Republicans, he'll sit down and talk to us. That's not the way our government works.

(END VIDEOTAPE)

COSTELLO: I know what you're thinking, just sit down and talk, OK. Anyway, let's talk about that little glimmer of hope I mentioned at the top of the show. The White House is summoning key Democrats to a meeting this afternoon. Brianna Keilar is at the White House with more details on this. Good morning.

BRIANNA KEILAR, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning to you, Carol. I'm told by a White House official not to read too much into this. This meeting with House Democrats is just congressional outreach and we'll expect that House Republicans as well as Senate Democrats and Senate Republicans will be invited to the White House here in the coming days.

But there is a possibility of some opening to discussion of a stop gap measure. It's not a breakthrough. But it is something that we're hearing the White House not dismissing and House Republicans not dismissing as politicians feel a lot of pressure because of the shutdown and the debt ceiling.

COSTELLO: OK, so there's a little teeny wiggle room in there for both sides to chew on, right? But there's only a week left before October 17th. Will it widen any time soon you think?

KEILAR: You know, it's really unclear and I think right now, when it comes to the short term measure, this is the only sort of glimmer of hope, and it's kind of unclear whether it's truly a glimmer of hope. But the door hasn't been slammed on it. So what you heard was President Obama yesterday being open to the idea of a short-term measure to avoid default and re-open the government.

How long will this be? Four to six weeks we're told by a House Republican. The president wants longer than that, Carol, but the White House officials say, a short-term measure is better than defaulting. But here is kind of the rub. We don't expect that it would get through the House and pass the House Republicans if they don't get some sort of concession.

And the White House is still insistent that they're not giving anything on this. It has to be a clean increase in the debt ceiling and a clean way to reinstate government funding. So now it's sort of an issue of finding that sweet spot. What might the White House agree to that House Republicans would consider maybe getting at least kind of a little something in all of this, and that's really unclear. They're not even to the point of discussing that.

COSTELLO: All right, Brianna Keilar reporting live for us from the White House. Before the president heads to the meeting with Democrats, he will make a major announcement this afternoon. He will nominate Janet Yellen to replace Ben Bernanke as head of the Federal Reserve. CNN's Christine Romans is in New York to tell us why this is important. Good morning.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's important because this is a really big job here, running the fed. I mean, this is a woman, Carol, who by a colleague was once called a small lady with a large IQ. She has 40 years of economic research under her belt. She got a PhD from Yale. She began her academic career at Harvard and Berkley. She moved on to the Federal Reserve and she's no stranger to politics.

She left the fed in February 1997 to become the chair of the Council of Economic Advisers under President Clinton. She garners huge respect from her colleagues and has helped steer policy through the worst of the financial crisis, Carol. She is seen as a steady hand, likely continuing the current fed policy of pumping billions into the economy each month.

Her biggest challenge, if confirmed by the Senate, as expected really, will be to wind down that stimulus and allow the American economy to finally stand on its own. That means this fed job, Carol, is the most important financial job in the world especially in the absence of any leadership from Congress. By the way, she was one of the few, Carol, who saw the housing crisis coming. She warned this in June 2007. She said, in terms of the risk to the outlook for growth, I still feel the presence of a 600-pound gorilla in the room and that is the housing sector.

One of the few who really were raising the alarm bells about that. Hundreds of economists, Carol, signed petitions to President Obama to consider her for this job over Larry Summers and she is the top pick of Senate Democrats -- Carol.

COSTELLO: OK, so the president will nominate her, but she still have to go through the confirmation process and of course, that involves Congress. So how likely is that going to be an easy process or hard process or what?

ROMANS: You know, it's interesting. Most people are telling us they expect confirmation though, Senator Bob Corker, a Republican just tweeted last night, he said, I voted against Vice Chairman Yellen's original nomination to the fed in 2010 because of her dovish views on monetary policy. He's tweeting and saying people that he has reservations, but he even conceded she will likely be confirmed -- Carol.

COSTELLO: Christine Romans reporting live for us from New York this morning. It's 7 minutes past the hour. Let's check some other top stories, shall we?

Boston school buses are rolling at least for this morning. They went on a wildcat strike Tuesday forcing parents to look for alternate ways to get their kids to school. They say the drivers plan to meet with the bus company today. No word yet on whether those buses will make their afternoon runs. Drivers oppose a new GPS that allows parents to track buses online.

We're hearing for the first time from that father of the 9-year-old who sneaked on board a plane from Minneapolis to Las Vegas. The man says he thought his son was at a friend's house at the time authorities say the boy was flying across the country. The father also questioned how airport security managed to miss a child traveling alone without a ticket.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You know, I don't understand. You got so much security check at these airports, how can you let a 9-year-old sneak past security, get on the plane without anyone stopping him, questioning him, or anything? We're not bad parents. We thought he was at a friend's house.

(END VIDEO CLIP)

COSTELLO: The father says he's been trying to address his son's behavioral problems since the boy was 5 years old. He insists he is not giving up on his son.

Fireworks in New Jersey with the first debate between Governor Chris Christie and his Democratic opponent took place. Among the topics, speculation about a possible Christie run for the White House in 2016. Speculation Christie did not seem to deny, saying he would not declare it during this debate.

(BEGIN VIDEO CLIP)

GOVERNOR CHRIS CHRISTIE (R), NEW JERSEY: People have been talking about me rushing for president in this state since 2010. They said I would do it in 2012, I said I wouldn't, and I didn't. And the fact is after 2017, I'll be looking for a new job anyway. So as we go forward, I'm going to continue to do my --

(END VIDEO CLIP)

COSTELLO: Several polls show Christie has as much as a 33-point advantage over his rival for governor. Voters head to the polls on November 5th.

Still to come in the NEWSROOM, an off-duty police officer is the latest person arrested in connection with that clash between a group of bikers and an SUV driver. That undercover officer has now been charged in this mess.

(COMMERCIAL BREAK)

COSTELLO: An off-duty, undercover New York City Police detective is now facing charges in the violent confrontation between a group of bikers and an SUV. Police say they have video of this officer participating in the altercation, but they have not released it publicly. The officer and another biker are expected in court today.

CNN's national correspondent Susan Candiotti is outside that courthouse in New York with more. Good morning, Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Good morning, Carol. Yes, we're about to see the two bikers who were last arrested last night in connection with this case, including that off-duty, undercover New York police detective. And he is allegedly seen on camera smashing the rear window of that SUV that has been -- that was chased.

So far at this point, five people have been charged for a number of charges, including gang assault and creating a riot.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): As we learn of even more arrests, online video like this, painful to watch. A biker seen kicking an SUV driver, Alexian Lien, lying motionless and bloody on the ground before trying to get up. An off-duty undercover detective now under arrest, 32-year-old Wojciech Braszczok was shown in this video has gone viral.

It shows him running over bikers after his tires were slashed. The off-duty cop is charged with two felonies, criminal mischief and being involved in a riot, in part accused of pounding on that SUV.

UNIDENTIFIED MALE: Internal Affairs Bureau is looking at this and they'll continue to do so.

CANDIOTTI: Another biker also charged with gang assault and criminal mischief. A law enforcement source says police have video of the detective not yet made public proving Braszczok took part. That same source says the veteran detective waited three days before reporting the incident, afraid of blowing his cover.

CNN legal analyst and former prosecutor, Paul Callan says the detective could also lose his job, even if he's not convicted.

PAUL CALLAN, CNN LEGAL ANALYST: As police officers, they have an obligation under NYPD regulations to break their cover, if they are undercover, and to come to the assistance of any civilian who is endanger and having looked at this video, clearly the civilians in that car look like they're in danger.

CANDIOTTI: Police also released photos of four other bikers in connection with the attack. The still frames were isolated from that video showing Lien getting stomped on. As for the biker wearing that helmet cam, he's now revealing why he pressed the record button. He said he saw Lien throw a water bottle out of his sun roof hitting a biker. The SUV started swerving and the bikers smelled trouble. He's not expected to be charged.

(END VIDEOTAPE)

CANDIOTTI: Now, you might be wondering how the police officer's lawyer is reacting to all of this. We put in multiple calls to him, but we have not heard back. Now the case clearly isn't over yet, Carol. This investigation still going on, the District Attorney's Office putting out a statement saying it is moving forward methodically analyzing every bit of evidence. Back to you.

COSTELLO: Unbelievable. Susan Candiotti reporting live from New York. Thank you, Susan.

We want to bring in New York Councilman Robert Jackson now. Good morning, Councilman Jackson.

ROBERT JACKSON, NEW YORK CITY COUNCIL MEMBER: Good morning, Carol. How are you doing?

COSTELLO: I'm good. Thank you for being with me. When you hear that an undercover police officer allegedly took part in this assault, what goes through your mind?

JACKSON: Totally unacceptable behavior on behalf of an NYPD, which we believe and say are the finest in the world.

COSTELLO: Well, that he didn't come -- I'm just so shocked about it myself. That he didn't come forward for three days because he didn't want to blow his cover. How do you take that story?

JACKSON: Well, I do believe that the police officers have a duty to report to their commanding officers and the higher ups in NYPD in order for them to evaluate. If in fact he was on assignment on this bicycle gang that would be a different story. But my understanding in reading and listening to the news is that they were not on assignment.

They happened to be owners of motorcycles and maybe members of the motorcycle club and riding along with this. But it's a different thing when you're on undercover assignment versus you are an undercover officer and off-duty, totally not acceptable for not coming forward right away to their commanding officers.

COSTELLO: The mere fact that a police officer would be a member of this -- what do you call this? We've been calling it a motorcycle gang, but it seems like this behavior might have happened before from this particular motorcycle club. So the fact that a police officer belongs to this club, isn't that disturbing?

JACKSON: Not really. Because there are many, clubs in and around New York City. To be a member of a club is not -- nothing is wrong with that, but when you engage in illegal activity such as wanting to close down 42nd Street like they did in 2012 --

COSTELLO: That's what I'm saying. They've done tricks like this before. They've stopped traffic. I mean, this motorcycle club or gang or whatever you want to call it isn't totally innocent even before this incident, right?

JACKSON: Well, if you're doing illegal things, it's totally unacceptable. And I don't paint all motorcycle clubs or individuals who ride motor vehicles with the same brush. Obviously, this incident here is a terrible situation on everyone. I mean, this guy, Mr. Lien could have been killed. He was injured. One motorcyclist is in the hospital. It's a bad situation all over. It doesn't look good for motorcycle riders, it doesn't like good for NYPD, it doesn't look good for New York City.

COSTELLO: So is the city council passing any sort of law that might prevent behavior like this in the future?

JACKSON: I think there are already laws in place. I do believe as a legislator that NYPD obviously from everyone's opinion is going to be cracking down harder on these motorcycle gangs that are riding around that want to stop traffic in order to do their tricks and things like that. And I do think, though, a lot of the dirt bikes that are running around the New York City streets, that's what members of my constituency have been complaining about more so than the motorcycles in and around the areas of New York City.

COSTELLO: Councilman Jackson, thank you so much.

JACKSON: Thank you. And the videos are coming forward, and more and more evidence is coming forward. As you know, six people are arrested at this point in time.

COSTELLO: Right. Not over yet. You're right about that. Thank you, Councilman.

Still to come in the NEWSROOM, you'll never have to panic over a lost debit card ever again. Coming soon, the cardless ATM, how it works and why some say it's safer than the piece of plastic you've been carrying around.

(COMMERCIAL BREAK)

COSTELLO: Coming soon, the cardless ATM. That's like a remote control for the cash machine. All you need is an app on your mobile phone to order up a stack of Benjamins. Developers say it's safe and you won't have to worry about losing your debit card.

Alison Kosik is at the New York Stock Exchange. It sounds promising.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It really does. You can order lunch on your phone. You can call a cab. You can rent movies and now you can get money out at the ATM. So what you do is pretty much what you said, you download an app that would be on your phone. You order up how much money you want to withdraw.

So when you're at the ATM, you use that app on your phone. And you scan a code on the ATM screen, and the money comes out. You can order money up to 24 hours in advance or while you're waiting in line. This is just being tested out at three small banks, Wintrust, BM O'Harris, City National Bank in New York City, San Francisco and L.A. And it is basically, Carol, a way for these banks to attract more tech savvy customers and people like me who like to find more convenience at the ATM.

COSTELLO: But I do worry, I mean, what happens if someone steals your phone?

KOSIK: That was exactly what I thought, you know, especially with phones a huge target for thieves as you know. But here's the thing with this idea, you can't just open the app. You have to first enter a pass code and thieves would also need to know your bank account information and your pin.

The good news with this idea is that using this phone also prevents scheming, you know, when thieves set up cameras on these ATM machines to get your debit card number, that wouldn't be possible. But here is a possible issue that even I didn't think about, a bad cell connection, what do you do?

If you have lousy cell service and you need to withdraw money? So don't worry. A fix is being worked on where you can still withdraw your cash no matter how bad your cell connection is. If you're looking for more details, check out CNN Money for all of those details -- Carol.

COSTELLO: We'll do. Alison Kosik reporting live for us this morning. Thank you.

Still to come in the NEWSROOM, demanding answers and confronting an indignity for military families who have suffered so much. How could the partial government shutdown block their death benefits from loved ones killed on duty? We'll talk to one charity that is stepping in for Congress.

(COMMERCIAL BREAK) COSTELLO: Right now on Capitol Hill, the House Veteran's Affairs Committee is about to open a hearing. Lawmakers want to know more about the impact of this partial government shutdown on veterans and their needs. Of course, the most shocking indignity surfaced just yesterday. Families of U.S. troops killed in action are being denied death benefits because of too much bureaucracy and too little authority.

This morning, Defense Secretary Chuck Hagel is at Dover Air Force Base for a ceremony marking the return for troops' remains. Now one charity is stepping in to the void for military families who are reeling from this financial loss and now grappling with unpaid bills and expenses, it will advance the money needed during this partial government shutdown.

Ken Fisher is the CEO of Fisher House Foundation. He joins us live. Ken, thanks for being with me this morning.

KEN FISHER, FISHER HOUSE FOUNDATION: Thank you for having me.

COSTELLO: Tell us how you're reaching out to military families?

FISHER: Well, Fisher House's mission has always been about military families and veteran's families, but we normally focus on the healing process. Although we did build a Fisher House specifically for the families fallen at Dover. When we learn of the gap in the -- and this is a difficult term -- death benefits for the families, this was one of those no-brainer decisions for us.

Our board authorized our movement very quickly and actually, we received a call from a Senator Manchin asking us if we would help. Obviously, we jumped right into the fray and so we're basically going to cover the gap in funding the benefits to these families who have suffered enough until the shutdown is over or until legislation is enacted that will fund it while the government is still shutdown.

COSTELLO: You deal with the emotional needs of military families every day. Tell us how this is affecting them emotionally?

FISHER: Well, I have to be honest. I haven't had a chance to speak with them directly as of yet. But I can tell you, the ones that I have spoken to, the gold star mothers and families and so forth, this is just a very obviously emotional time. They have sacrificed so much and then they lose a loved one in service to this nation. It's just a very, very difficult time for them, obviously.

COSTELLO: Ken --

FISHER: But do have this kind of, you know, add to the -- you know to the frustration and to the grieving, is just unconscionable to us.

COSTELLO: I think everybody would agree with that, Mr. Fisher. If it you could just stand by and listen to this Veteran's Affairs Committee meeting because they are talking about the very topic we're expressing right now. This is the chairman of that committee, Jeff Miller. Let's listen to his opening statement --