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Dow Set to Open Lower; Zimmerman Free on Bond; GOP Blocks Another Obama Nominee; Filibusters Spark Senate Battle; "Real Housewives" Stars Face more Fraud Charges

Aired November 20, 2013 - 09:30   ET

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

CHRISTINE ROMANS, CNN ANCHOR: It's 32 minutes past the hour. Welcome back. I'm Christine Romans.

JOHN BERMAN, CNN ANCHOR: And I'm John Berman. We are both in for Carol Costello this morning.

ROMANS: All right, the Dow Jones Industrial average expected to open lower this morning. Investors hitting the pause button after leading the Dow to a record high earlier in the week. Thirty-nine records so far this year. Alison Kosik is at the New York Stock Exchange.

Alison, I've kind of stopped counting all of those records. Not a real surprise investors will be pausing here a little bit.

ALISON KOSIK, CNN CORRESPONDENT: Yes, you know everybody needs a breather every now and then. It's interesting how this Dow 16,000 happened. You know Monday and Tuesday during this session, the Dow hits that wonderful round number. There's a lot of excitement. Everybody cheers. And then crickets, quiet.

But you know what? The ebb and flow was kind of normal, kind of healthy for the market. You don't want the market to get too hot too fast, especially when you look at unemployment. It's still so high. But come on, stocks have already had an amazing year. Look at this. The Dow, the Nasdaq, the S&P 500, all up 20 to 30 percent just this year.

There is one big jump we are watching today, though. Shares of J.C. Penney. That's the struggling retailer. Kind of a head scratcher though, especially when you see the headlines coming out of its earnings report this morning. The retailer losing almost $500 million in the quarter. It's sales fell. And sales are down now for almost two years in a row. The stock itself down more than 50 percent this year. Ahh, but you're seeing investors buy in with J.C. Penney shares up about 8 percent right now. There are high hopes about the holiday season. J.C. Penney is expecting its sales to get better. And the fact that the stock is up today shows just how dire things are, that investors are kind of latching on to this little single sign of hope.

Christine.

ROMANS: All right, Alison Kosik, we'll check in with you again at the big board.

Thanks, Alison.

BERMAN: Crawling towards 16,000 again today.

ROMANS: Yes.

BERMAN: Other news. George Zimmerman out on bond again. This time as part of his bail, he is not allowed to possess any guns and he has to wear an ankle bracelet so police can track him.

ROMANS: Overnight we learned Florida authorities were at the home of Zimmerman's new girlfriend, Samantha Scheibe, to get his belongings. And we're hearing more about their relationship. Scheibe's mom told CNN affiliate WKMG that after Zimmerman was acquitted of murdering Trayvon Martin, he was alone, he was depressed, he was fascinated by guns. She said Samantha Scheibe wanted Zimmerman to get help, even sought the attention of several TV networks apparently, but Zimmerman refused any help and cleared all of her furniture out of her home. Despite all that, the couple stayed together.

BERMAN: Sounds complicated.

ROMANS: Yes.

BERMAN: CNN's Alina Machado is in Sanford, Florida, with more on this.

What's the latest, Alina?

ALINA MACHADO, CNN CORRESPONDENT: Well, John, in addition to the restrictions you mentioned, George Zimmerman has been ordered to stay away from Samantha Scheibe, the woman whose allegations are now at the center of his latest run-in with the law.

(BEGIN VIDEOTAPE)

MACHADO (voice-over): George Zimmerman free on bond, not answering any questions from reporters.

UNIDENTIFIED MALE: George, you want to defend yourself?

MACHADO: Just hours after appearing before a judge in handcuffs, and learning his bond was set at $9,000. His demeanor in court, calm, as he answers questions from the judge.

GEORGE ZIMMERMAN: Yes, your honor.

MACHADO: This is Zimmerman's fourth brush with the law since he was acquitted in the shooting death of 17-year-old Trayvon Martin. His girlfriend, Samantha Scheibe, called 911 Monday after a domestic dispute allegedly turned physical.

911 DISPATCHER: What's going on?

SAMANTHA SCHEIBE: He's in my house breaking all my (EXPLETIVE DELETED) because I asked him to leave. He has his freaking gun breaking all of my stuff right now.

MACHADO: Zimmerman made his own 911 call telling a different story.

ZIMMERMAN: She got mad that I guess I told her that I would be willing to leave.

911 OPERATOR: OK.

ZIMMERMAN: I guess she thought I was going to argue with her. But she's pregnant. I'm not going to put her through that kind of stress.

MACHADO: In court, prosecutors said Scheibe fears for her life, claiming this wasn't the first time she was attacked by Zimmerman.

LYMARY MUNOZ, FLORIDA ASSISTANT STATE ATTORNEY: The victim had indicated that there was a prior domestic violence incident that occurred approximately a week and a half ago that involved a choking that she did not report to the police. She is in fear for her safety. On the day of this incident, she had indicated that they had been discussing breaking up.

MACHADO: Prosecutors also say Zimmerman is suicidal, a claim his attorney says is false.

DANIEL MEGARO, SEMINOLE COUNTY ASSISTANT PUBLIC DEFENDER: I think any time somebody's arrested for charges, it brings a certain level of anxiety and stress. My impression again of speaking with Mr. Zimmerman, he didn't appear to be a danger to himself or a danger to anybody else.

MACHADO: According to court documents, Zimmerman says he is homeless and unemployed. He also says he's $2.5 million in debt and lists $144 cash in assets. He has been appointed a public defender.

MEGARO: I definitely would not characterize my client as a loose cannon. Is he presumed innocent on these matters and we're confident he's going to be acquitted.

(END VIDEOTAPE)

MACHADO: Zimmerman's wife, Shellie, served him with divorce papers while he was sitting in a jail cell here Monday night. And by the way, the Department of Justice has not yet made a decision on whether they're going to be filing any civil rights charges against Zimmerman in connection to Trayvon Martin's death.

John. Christine.

ROMANS: Wow. All right, Alina Machado. Thank you so much for that, Alina.

BERMAN: Thirty-seven minutes after the hour.

And in just about two hours, President Obama is set to honor 16 Americans with the Presidential Medal of Freedom. This, of course, is the country's highest civilian honor. The recipients today include Bill Clinton and Oprah Winfrey, the astronaut Sally Ride, Chicago Cubs legend Ernie Banks and country music star Loretta Lynn. This will be a really interesting ceremony. And CNN will bring you it live. Our special coverage anchored by Jake Tapper begins at 11:00 a.m. Eastern. Be sure to watch that.

We'll be right back.

(COMMERCIAL BREAK)

ROMANS: Oh, the effects of gridlock once again in Washington. This time it's over President Obama's nominees to the influential Federal Appeals Court in D.C.

BERMAN: Some Republicans are saying what the president is trying to do is pack that court and now top Democrats are considering changing key Senate rules to prevent this from happening, prevent the Republicans from stopping these types of appointments. CNN chief congressional correspondent Dana Bash explains.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT (voice-over): Democratic frustration is palpable and vocal.

SEN. HARRY REID (D), MAJORITY LEADER: Republican obstruction has become endemic in the Senate.

UNIDENTIFIED MALE: I courage my Republican colleagues to stop these filibusters now.

UNIDENTIFIED MALE: Here we go again.

BASH: Republicans blocked three of the president's key judicial nominees in three weeks.

UNIDENTIFIED FEMALE: The motion is not agreed to.

UNIDENTIFIED FEMALE: The motion is not agreed to.

UNIDENTIFIED MALE: The motion is not agreed to.

BASH: But unlike other partisan brawls over the courts, this is not about qualifications or ideology of the nominees. It's about the makeup of the court itself. The D.C. Circuit, the powerful federal appeals court that hears most challenges to laws passed by Congress, now evenly split, four judges appointed by Democrats and four by Republicans, and the GOP wants to keep it that way.

UNIDENTIFIED MALE: The only way the president can successfully bypass Congress is if he stacks the court with ideological allies who will rubber stamp those executive orders.

BASH: But Democrats say, wait a minute, there are three vacancies on that court and it's the prerogative of this president, or any president, to appoint qualified judges.

REID: No president should have to put up with what President Obama's had to put up with. BASH: Republicans argue the D.C. Circuit workload isn't heavy enough to need three more judges. They say Democrats are the ones playing politics.

SEN. MITCH MCCONNELL (R), MINORITY LEADER: In order to concoct crisis on the D.C. Circuit so it can distract Americans from the failings of Obamacare.

BASH: But Democrats are so frustrated with Republicans blocking judges and other Obama nominees, they're once again openly discussing the so- called nuclear option, changing decades' old rules and taking the Republicans' filibuster tool away.

BASH (on camera): Are you at the point where you're going to consider the nuclear option?

REID: I'm at the point where I need - we need to do something to allow government to function. I think what we need and the American people want, to get things done around here.

BASH: This is not the first time the Democratic leader threatened to detonate the nuclear option, but what's different now is he's getting some new key allies who are fed up. Senator Dianne Feinstein, a Democrat and veteran of the Senate, was reluctant before to take away the minority's power of filibuster, but now she's changed her mind because she says it's the best way she sees for Washington to work better.

Dana Bash, CNN, Washington.

(END VIDEOTAPE)

BERMAN: Let's bring in our political panel to discuss all this. Maria Cardona is a CNN political commentator and a Democratic strategist, and Ross Douthat is also a CNN political commentator and an opinion columnist for "The New York Times." We have a smart sandwich with us here today. We're so lucky to have you both.

Ross, I want to start with you. This is the third time in as many weeks the Republicans have blocked a judicial nominee. And, you know, Robert Wilkins (ph) was unanimously confirmed for the district appeals court. So it feels like there's something maybe perhaps bigger than judicial appointees going on here. Do you think Republicans smell blood, sense weakness in this administration and are trying to pounce?

ROSS DOUTHAT, CNN POLITICAL COMMENTATOR: In part. I also think that a lot of Republicans would actually be relatively happy if Harry Reid went ahead with the so-called nuclear option and actually did away with the filibuster for judicial nominees because what we're watching right now is the culmination of a process that's gone on, under Republican presidents and Democratic presidents alike, going back to the 1980s, where the filibuster has been used more and more. It was used constantly to block George W. Bush's nominees and that, you know, if you go back nine or 10 years, it was Republicans threatening to use the nuclear option. So in a sense, precisely because the White House seems weakened, the Democrats seem weakened, a lot of Republicans say look, it's sort of a win/win. Either we block these nominees or Harry Reid uses the nuclear option, we take back the Senate in the next two or four years and then it's easier for us to get our justices confirmed under the next Republican present.

BERMAN: Maria, that does seems like a risk for Democrats. And that's one of the reasons that Democrats like Dianne Feinstein and Barbara Boxer have been hesitant to support the nuclear option because they are fierce opponents of abortion restriction. They've always wanted the right to filibuster judicial nominees. Does this put Democrats at risk if the Republicans take over the Senate?

MARIA CARDONA, CNN POLITICAL COMMENTATOR: There is no -- there is no question that it could be a problem for Democrats down the line if this happens but what this demonstrates to me, John, is that they are so fed up with Republicans playing politics and I agree with the description that Ross just put forth but that also underscores that what Republicans are thinking about is pure politics. They don't care about the gridlock that is going on in Washington. They continue to just obstruct, obstruct, obstruct and that's exactly what Americans are fed up with.

And I do think there's a big risk here for Republicans, because we're coming off of a government shutdown that really has hurt their image, they're blocking a vote on immigration, which is something that a majority of the country wants. They're already talking about another government shutdown come January on fiscal issues.

They are cementing themselves as the party literally of obstruction on this. And I think voters are absolutely fed up and from a messaging standpoint it's exactly the opposite of what the GOP needs right now.

BERMAN: On the subject of image problems, there's a new CBS poll which has the President's popularity at an all-time low, has Obamacare's popularity at an all-time low. This is the question quickly to both of you. At this point, does the President need to fire somebody? Does he need to have something he can point to and say I took this action, now we're moving on -- Ross?

DOUTHAT: I think that he should. However, I think the calculation in the White House is that polling doesn't matter at all because the only thing that matters is getting the Web site fixed. And I think their -- their assumption is that firing people right now makes it -- makes it take longer to fix the Web site and that's the only thing they care about. I think the mistake in that calculation, though, is that then you have a lot of people working for you who know they're going to be fired as soon as they're done doing their work.

So it's sort of a Catch 22 for the White House. I can see what they're thinking but it would be a sort of weird position to be in and if you were one of the people who expected to be fired in two months.

BERMAN: Maria, last word?

CARDONA: I think that right now the focus of this President and this White House needs to be 150 percent on making sure that this Web site works and making sure that all of the people, the millions and millions of people who have shown interest in wanting to sign up and get health care on these health care exchanges are able to get it.

Once that gets done, then I think you have to look at who is accountable and I think that will happen but the focus needs to be to make sure that this works and if that happens, then all of this will be a faint memory.

BERMAN: Ross might be right, it might be hard to keep the work going on.

DOUTHAT: Maybe if they can 175 percent.

CARDONA: It needs to be getting this done.

BERMAN: All right, Ross Douthat, Maria Cardona, great to have you. Thank you so much I appreciate it.

DOUTHAT: Thanks so much.

CARDONA: Thank you John great to be here.

ROMANS: Great conversation.

All right new in the next hour of NEWSROOM a U.S. Poison Control Centers have a new warning for parents. Do you see those on your screens? Keep detergent pods away from your kids. Officials say they've already dealt with thousands of cases involving children.

BERMAN: This is a big deal.

ROMANS: It really is. We'll look at the potential dangers and what you need to know about these, all new at 10:00.

(COMMERCIAL BREAK)

ROMANS: All right. To New Jersey now where "Real Housewives" stars Teresa and Joe Giudice are -- well they're back in court today.

BERMAN: The reality TV stars will be arraigned in a Newark courtroom on two new charges. And if you're keeping count that brings the total to 41 counts of fraud and making false statements. If convicted, they could spend decades behind bars.

ROMANS: Right. Entertainment correspondent Nischelle Turner joins us now. More counts.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Yes it puts the real in reality TV.

ROMANS: It does.

TURNER: It sure does. Yes they're back in court today. Potentially they could be in a lot of trouble. Because in August they pled not guilty to 39 charges that included conspiracy to commit mail fraud, wire fraud, bank fraud, bankruptcy fraud and making false statements on loan applications. Now like John mentioned, they are facing 41 charges after the federal prosecutor added two counts to their indictment.

Now these new counts stem from a $361,250 mortgage loan that Teresa Giudice got in 2005. This was all before she became a "Real Housewife of New Jersey."

According to this indictment, when she applied for this loan, Teresa falsely stated that she was a realtor and that she made $15,000 a month. But prosecutors say she wasn't even working outside of the home at a paying job at that time. Now you add that mortgage to the overall total that they're accused of lying about, they are accused of lying to get more than $5 million in loans. And in terms of consequences, like you mentioned, they could spend decades in prison if they are convicted.

Joe Giudice could be deported because he's an Italian citizen. He's not an American citizen. And their attorney told me back in August that the couple would not be testifying against each other. Teresa has continuously publicly stated her support for Joe. And it's interesting. She's faced a lot of criticism because if you look at things like her Twitter and her Facebook page, all you see is, "Hey, buy my cookbook, I'm out promoting this, I'm out doing that like she doesn't have a care in the world." I'm not sure if she can win either way. But she's really putting on this front, like hey, I'm just fine there's nothing to see here."

ROMANS: And how much of this mortgage-related? If you look back at 2005, there were a lot of folks lying on mortgage applications or with (inaudible) loans you didn't even have to say how much money you make on these mortgage applications. Is this all mortgage related?

TURNER: A lot of it is mortgage. Then there's other some and some kind of loan fraud and loan applications, bank fraud type of things also when they filed for bankruptcy.

ROMANS: Right.

TURNER: Part of that. But yes, a big part of this is mortgage loans. And that's really interesting, because you know, like you said, a lot of people were doing that. They are saying that it's because we're famous now and that's why we are getting the spotlight put on this. And also they lived this very lavish lifestyle on the show, so that put the spotlight on them. And so they think that's why they are being prosecuted now.

BERMAN: And of course, it will all be evidence in the trial coming forward.

TURNER: And they're going to look at the tapes from the show, believe that.

ROMANS: Wow.

BERMAN: All right Nischelle Turner thanks so much for being with us.

ROMANS: All right still to come, skier Lindsey Vonn's comeback now in doubt. BERMAN: And this is really just a couple of months before the Winter Games begin, the Olympic skier is injured during a practice run. Stay with us.

(COMMERCIAL BREAK)

BERMAN: Olympic skier Lindsey Vonn carted off the slopes after a crash in a practice run. And now trainers are trying to figure out just how bad this injury is.

ROMANS: Andy Scholes joins us now with more on this morning's "Bleacher Report". Hey there.

ANDY SCHOLES, CNN SPORTS: Hey good morning guys. You know, Vonn she's has been working her way back from that horrific crash she had back in February. She was ahead of schedule but this could be a major setback. After crashing during a practice run in Colorado, Vonn was taken down the hill on a sled. A bystander was able to snap this picture of her as she was being helped off.

Vonn was not admitted to a hospital, instead went home to Vale to be evaluated by the doctors who performed her knee surgery. She's expected to undergo an MRI to determine the extent of the injury. The Sochi games are just 78 days away.

The second winningest high school girls' basketball coach in the country has resigned after allegations that he bit one of his players in the face after she made a bad play. Now the coach's name is Doyle Wolverton. The player he allegedly bit was taken to the emergency room where the police observed a bruised bite mark on her face. Despite what happened the father of the girl said he does not want to pursue charges. Wolverton has not addressed the biting allegations.

All right guys. You have to check out this new Foot Locker commercial. Kylie Irving is talking about the week of greatness at Foot Locker and he revels in the feeling that everything is right in the world.

(BEGIN VIDEO CLIP)

MIKE TYSON, FORMER PRO BOXER: I'm sorry if -- it's your ear.

UNIDENTIFIED FEMALE: Are you ok?

UNIDENTIFIED MALE: It's great. A man has got to know when to walk away.

UNIDENTIFIED FEMALE: So Mr. Rodman, round trip to North Korea?

DENNIS RODMAN, FORMER NBA PLAYER: One way.