Return to Transcripts main page

CNN Newsroom

Toronto Mayor Controversy; 401(k) Balances Hit Record High; Ads Target Young People Health Care Proposal Today; Obama to Make Statement on Affordable Care Act; Fears Grow Over 3-D Printed Guns

Aired November 14, 2013 - 09:30   ET

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

MAYOR ROB FORD, TORONTO: I take full responsibility for my mistakes.

UNIDENTIFIED MALE: Is there some way that you can explain to us why you don't want to take a leave of absence?

FORD: There is no need for me to take a leave of absence. I'm returning my calls. I'm going to committees. I'm watching every single dime that's being spent here. I've done it for 13 years and I'm going to continue doing it for another five years, one this time and four more after October 27th.

UNIDENTIFIED MALE: Have you admitted all of your problems?

FORD: I have come -- I can't come out any - I don't know what else there - I don't know. I - I - I don't know, there might be like a coat hanger left in my closet. I don't know. That's - I don't know what's left. I don't - I - counselor, I've made mistakes and that's it.

UNIDENTIFIED MALE: Will you get help?

FORD: I'm not an addict of any sort, so I'm not quite sure why you're saying I need help.

There's nothing else to say, guys. I - I really f'd up, and that's it. If you want to carry this on, I can't stop you. I'm moving on. You guys can do what you want. I apologize again. I'm sorry. That's all I have to say.

(END VIDEO CLIP)

CAROL COSTELLO, CNN ANCHOR: CNN's Paula Newton was in that city council meeting yesterday and I can't even imagine what that must have been like, Paula.

PAULA NEWTON, CNN CORRESPONDENT: Well, I felt like I had been on the couch as well, so did everyone else there. It was very uncomfortable to watch and let's underscore the fact that there is a budget on the table here of $9 billion for this city. There are more important things to do.

Having said that, right out of the gate this morning, Carol, the mayor came in and told us that there -- in reaction to new allegations that came out yesterday, there were interviews that were released from court documents, interviews with his staff members, the mayor says now he is suing those former staff members for alleging that he was out of control, drunk driving, binge drinking, taking drugs and with a person they believed to be an escort.

Now, the mayor was saying that he didn't want to have to take legal action, but that the allegations, quote/unquote, "make him sick." That the person he was with was not a prostitute but a family friend and that the allegations were hurting his family and his wife.

Carol, the fiasco just continues here. And you heard the mayor say, and what we just heard was that, you know, he said, "I had nothing left to hide." And then he's saying he had a so-called coat hanger. You know, from what we know, there could be more coming out in court documents next week and apparently more stories coming out from local papers that show, again, more of a pattern of erratic behavior.

Carol.

COSTELLO: So many Americans are sitting back and asking themselves, why can't the city council in Toronto get rid of this guy? Why don't they just vote him out of -- why can't they do that? Why can't they impeach him? Why not?

NEWTON: Well, the people of Toronto voted him in. I feel like I'm parroting Rob Ford here, but let's make something clear, the way the rules go, that means that the people of Toronto voted him in. The only thing that could potentially get him out of office are two things. One, is if the province steps in and basically seizes the city government. We don't see that happening. And then, two, if he is charged and then convicted, Carol, of anything. He is not charged yet so far, so we're talking about a long way down the road.

I know it's incredibly difficult to understand why people would even support him. And again, Carol, we're talking about a man who probably arguably still has about 40 percent support in this city, and that's solid support. Two-thirds people saying, look, if he goes and gets help, we may vote for him again anyway. The election coming next fall. Mayor Ford saying he's still running.

COSTELLO: Wow. Paula Newton, thanks so much. We appreciate it.

Other stories we're following this morning at 34 minutes past the hour.

In just a few hours, White House officials are expected to meet with Senate Democrats on Capitol Hill. They're looking for a fix for people whose health care plans are being canceled under Obamacare, something the president assured everyone would not happen. The issue is driving a wedge between the president and angry members of his own party. Tomorrow, the House is expected to vote on a Republican proposal that would allow people to keep their plans.

$900 million later, there is no scientific proof of program that teaches TSA officers to spot terrorists by simply observing their behavior actually works. That's according to a new report from the Government Accountability Office. The report says Congress would be wasting money if it keeps paying for this program. TSA says cutting money would damage security.

Right now on Capitol Hill, a hearing getting underway to look at how the deadly shooting at LAX unfolded. TSA administrator John Pistole will testify before a House Homeland Security subcommittee. He's expected to discuss lessons learned from the shooting that left one TSA officer dead.

If you haven't been keeping an eye on your 401(k) this year, here's a happy surprise! Balances have hit record highs. Christine Romans is here with more on that.

Good morning, Christine.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Good morning, Carol.

And this morning I can tell you, the Dow Jones Industrial average at a record again. I think this is the 36th, 37th of the year if it closes above here where it is today, the 37th record close - record high close of the year. So the stock market has been going in the direction of savers and investors who are investing in their 401(k).

Let me show you what fidelity says the average balance now is of the 12.6 million 401(k)s that they have. The balance, a record high $84,300. And, Carol, for the people who have been investing every month through their paychecks in -- over 10 years, that average balance now is $223,100. We've never seen those averages quite this high.

It is, I guess, it is validation, really, of what you've seen this year in the stock market. But I would caution that about half of Americans are not invested in the stock market in any way. They do not have a 401(k). So for them, it is still the jobs market that's the most important thing here. I expect we'll hear from Janet Yellen at her confirmation hearing today before the Senate Banking Committee that she is still concerned about jobs in America.

Carol.

COSTELLO: All right, Christine, we'll have more on that in the next hour of NEWSROOM. Christine Romans live from New York this morning.

Here's what's all new in the next hour of NEWSROOM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: He says we're going down and everybody's looking around like, is this a joke? Is he serious?

(END VIDEO CLIP)

COSTELLO: A terrifying ordeal on a Southwest flight. Passengers frantically contacting their loved ones to say good-bye, after a pilot's private comment goes out to the entire cabin. We'll talk to a passenger who was on board. Plus, is it the $3 billion snub? Imagine being offered all that money to sell your company and saying no. That's exactly what a young CEO told FaceBook. So what he's holding out for? We'll discuss, in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

COSTELLO: All right, this just in to me, and I'm reading it off my e- mail, so bear with me here. It has to do with Obamacare and the president. As we told you at the top of the show, the president is meeting with powerful Democrats at the White House today, and I'm sure they'll be talking about how to allow people to keep their insurance plan. And a lot of people, as you know, have had their insurance plans canceled under Obamacare. Well, Nancy Pelosi just said, "the president will offer a proposal today, that is my understanding." We assume what she means by that is, the president will offer some proposal today to allow people to keep the health care plans that they want, that they already have, maybe that they've lost, but we're not sure about that part. So we're awaiting word from the president. We're awaiting more word from Nancy Pelosi. And, of course, Jim Acosta is hot on this story. He'll bring us more information as soon as he gets it.

On to other news now. Another pressing problem for the president and his health care plan, the lack of young people signing up for Obamacare. After all, Obamacare cannot survive without young customers to offset the costs of older, sick people. So some pro-Obamacare groups are putting ads online to lure young people in, except - well, I'll let you look at the ads and you can decide. This ad campaign was put out by a Colorado nonprofit. It's called doyougotinsurance.com. You know, kind of an offshoot of the you got milk commercial.

This one says, "hey, girl, you're excited about easy access to birth control and I'm excited about getting to know you." And this one says, "not sure how I ended up here perched on this keg, but that's OK, my budget will stay balanced even if I don't because I have insurance." More than one person out there says these ads are lame, even offensive.

Joining us now, Adam Fox, director of strategic engagement for CCHI, one of the groups that created these ads, and Ken Wheaton, managing editor for Ad Age.

Adam, I'll start with you since i just dissed your ads. Some people, like I said, say they're offensive, especially to women.

ADAM FOX, COLORADO CONSUMER HEALTH INITIATIVE: You know we're really just trying to raise people's awareness about the new health insurance options that they have access to, and really trying to get people talking about the reasons that they should be thinking about getting health insurance and start the shopping process.

COSTELLO: But is advertising what you can get under your new insurance plan birth control really the way to go? Because young people are more concerned about just sex and I know everybody's laughing at me right now but they really are. They've got other problems in their life. FOX: Well, there are a lot of reasons that people need health insurance, and reproductive health care and birth control is fundamental basic health care. And it's really important for anybody of a reproductive age to have access to that in order to take control of their life and health care decisions.

COSTELLO: Well, you know, Republicans have glommed onto these ads and say, well, you're just pushing sex like every liberal out there. You're making women look like prostitutes. I'm just saying stuff I've heard, you know, in the blogosphere.

FOX: Women are strong, independent human beings capable of making their own decisions and when 99 percent of American women have used birth control at some point in their life and birth control is now more accessible because of Obamacare, that benefits millions of women.

COSTELLO: I know. And like I don't understand the controversy over birth control either, honestly, but I just had to ask you that question. I hope you understand.

Ken, I'll pose this to you. When you see these ads online, do you think they're effective? You're the expert.

KEN WHEATON, MANAGING EDITOR, AD AGE: I got to be honest, the first time I saw these ads, I thought they might have been put out by a Republican group trying to undermine Obamacare because they were just played into some of these stereotypes of progressives and millennials. But, you know, the more I think about it, the more they might actually be on to something here. If you look at some of the exchange -- ads for exchanges in states like Oregon, they're so sort of goofy and they don't say anything and it's nice music, but these ads, once you get past the first couple of silly brochurance and the birth control girl, they are giving some specifics to why maybe young people should at least look into this. And they did it on a shoestring budget of, I think, $5,000 to create the ads and maybe $100 of social media promotion and then it caught on -- got caught on - it caught on with critics mostly, but it's still getting out there. Will it work? I'm not so sure.

COSTELLO: OK. Well, let's - let's -- these are the ads pushing people toward Obamacare. There are also ads out there put out by Republicans that tries to drive young people away from signing up. And I'd like to show our viewers one of those.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Hello, I'm the private sector.

UNIDENTIFIED MALE: And I'm Obamacare.

UNIDENTIFIED MALE: What are you doing (INAUDIBLE)?

UNIDENTIFIED MALE: I'm addressing the people.

UNIDENTIFIED MALE: The people?

UNIDENTIFIED MALE: You can keep your plan, you can keep your doctor, lower premiums for everyone!

UNIDENTIFIED MALE: Actually, that's a lie.

UNIDENTIFIED MALE: I know, but I want people to like me.

UNIDENTIFIED MALE: You try telling them the truth?

UNIDENTIFIED MALE: No, that will never work.

(END VIDEO CLIP)

COSTELLO: So, Adam, like, you know, it's obvious that they're spoofing an existing ad, those Mac ads. Do you think those ads are effective? Do they effectively combat yours?

FOX: You know, I think they're always going to be people who are going to be pushing one way or another around a policy issue. Really when it comes down to it, we know that people want access to health insurance and health care so that they can get the care they need when they need it. So I think that it's really a matter -- it will come down to people really wanting health insurance and figuring out a way to get it.

COSTELLO: All right, Adam Fox with CCHI, Ken Wheaton of Ad Age, thanks to you both.

FOX: Thank you.

COSTELLO: I'm sorry I had to end this early, but I got to get to this breaking news.

Let's head to Washington and Jim Acosta. Like I said, the president is supposed to put out some kind of proposal later today to fix what's wrong with Obamacare.

Jim, do we know what that proposal will be?

JIM ACOSTA, CNN CHIEF WHITE HOUSE CORRESPONDENT: We don't want to - we don't want to go too far on this, Carol, at this point. We don't know what the proposal is and we should also caution our viewers that the White House has not confirmed whether or not the president will come out with a proposal today. But this is pretty close to it. House Democratic Leader Nancy Pelosi said at the Washington Ideas Forum, which is an event going on here in the nation's capital earlier this morning, that she does expect the president to come out with a proposal to fix the Affordable Care Act at some point today. Here's what she had to say.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D), MINORITY LEADER: I think it can be done administratively. The president will offer a proposal today, is my understanding. And we have our own proposal, which we think is really good, but we'll see. And it has to be done in the next little period.

(END VIDEO CLIP) ACOSTA: Now just to give you a little bit of context as to what might be happening and how this may be unfolding, well we can tell you and we do know this White House chief of staff Dennis McDonough he's going to be up on the Senate side talking to Senator Democrats about what may be about to unfold over here at the White House in terms of potential fixes, administrative fixes or legislative fixes.

We should point out Carol for the last week or so, the White House has said they've been working on administrative fixes but that they've been open to legislative fixes. That's why you're hearing from people like Mary Landrieu an incumbent Democrat who is up for re-election next year, a vulnerable Democrat making her own proposal for people who like their insurance plan to keep their insurance plan. Basically that would require the insurers to allow those people to stay on those plans so long as they keep making their payments.

There is a proposal over on the House from Republicans that the White House has been cool to but the White House has not been knocking down the Mary Landrieu proposal which is an interesting thing to know.

One other thing we want to point out is Deirdre Walsh our producer over on the House here at CNN, she has been told by two senior House Democratic aides that leaders have not been given specifics yet but they do expect administration officials to detail at a 2:30 p.m. caucus meeting some of the proposals that are being talked about inside the administration.

So things seem to be picking up some steam as to what that proposal from the President might be. And of course he's under a lot of pressure, Carol, not only do you have the Obamacare enrollment numbers that were disappointing and they're scrambling to fix the Web site.

There are, of course, all of those millions of people who are receiving these cancellation notices despite his pledge if you like your plan you can he keep it. You know those cancellation letters have been coming in by the hundreds of thousands across the country, surprising a lot of lawmakers and that is what is really driving the train at this point -- Carol.

COSTELLO: All right we'll check back with you. Jim Acosta good reporting -- live from the White House this morning.

Still to come in the NEWSROOM the rise of 3-D printing could mean a rising threat to national security. Now the ATF is sounding the alarm on plastic guns that could make it into sports arenas and airports undetected.

(COMMERCIAL BREAK)

COSTELLO: All right. Our senior White House correspondent Jim Acosta fast on his feet -- fast on the ground -- he has new information to tell you about President Obama, who supposedly will make some sort of statement on Obamacare around 11:35 this morning. Tell us more, Jim.

ACOSTA: That's right, Carol. You know, this e-mail landed in my inbox just as I was talking to you a few moments ago before that commercial break. That's right.

The President is expected to make an announcement. A statement the White House says, on the Affordable Care Act at 11:35 this morning in the Briefing Room inside the White House. Typically in those situations, Carol, the President does not take questions from the press. It will be interesting to see whether or not he takes any questions. It's not being billed as a news conference.

But this announcement comes about this statement as administration officials have been telling us that a fix for the Affordable Care Act will be coming sooner rather than later. Quote, "sooner rather than later".

So I think we should expect, Carol that this will be the President making an announcement as to what he plans to do for all those billions of people who are getting those cancellation notices from their insurance companies even though he gave that pledge, if you like your plan, you can keep it.

And some of those fixes I know Dana Bash over on Capitol Hill can talk about the White House has been warm or receptive to Democratic ones, not so much to Republican ones.

Just yesterday, White House Press Secretary Jay Carney said about a proposal proposed that's being floated by Mary Landrieu proposed by Mary Landrieu that the President supports the same goals that Mary Landrieu supports of allowing people to stay on those insurance plans despite that pledge that he made earlier, that if you like your plan, you can keep it.

So we're going to be watching to see what the President says in about -- about an hour and a half from now, Carol.

COSTELLO: All right I'll let you collect your thoughts. You're going to join us again at the top of the hour with more Jim Acosta, reporting live from the White House.

Fears are growing that criminals may be able to use revolutionary 3-D printer technology to make their own plastic guns; guns that could get into airports and courthouses undetected. The Bureau of Alcohol, Tobacco and Firearms and Explosives says it was able to build and fire a plastic gun made from blueprints available for free online. And now the clock is ticking on a law that would keep guns like this one illegal.

CNN justice reporter Evan Perez is following the story this morning. Good morning, Evan.

EVAN PEREZ, CNN JUSTICE REPORTER: Hi good morning, Carol. This firearm is called "The Liberator". And it was downloaded off the Internet by the ATF and tested in a lab in recent months.

Now the ATF for the first time has released results of those tests and they say that it performs almost as well as, you know, a commercially available handgun -- pistol. And so now the question is, how does -- how do we react to the fact that there is a law that's expiring on December 9th that the ATF says raises the possibility that these plastic pistols could be snuck into a school, could be snuck into a courthouse and could cause, you know, a public safety problem around the country.

Now, there are a couple of bills in Congress that are pending, but there appears to be no movement on efforts to try to pass anything that could extend this law. Right now, those plastic weapons are required to have a piece of metal in them. And once this law expires on December 9th, that's no longer the case, Carol.

COSTELLO: All right I'm sure you'll keep following this story. Evan Perez, live in Washington thanks so much.

The next hour of NEWSROOM after a break.

(COMMERCIAL BREAK)

COSTELLO: Good morning. I'm Carol Costello. Thanks so much for joining me.

We do begin this hour with breaking news. We are about 90 minutes away from hearing the President explain how he plans to fix one of Obamacare's biggest blunders; he is due to speak in 11:35 Eastern. Now the problem is the inability of millions of Americans to keep the health coverage they already have, if they like it. President Obama will announce his plan from the White House Briefing Room.

Senior White House correspondent Jim Acosta is at the White House; on the phone with us now, chief congressional correspondent Dana Bash. Thanks to you both. So Jim, I'm going to start with you. What will the President say?

ACOSTA: Good question, Carol. I don't know at this point.