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Christie Meeting with Voters at Town Hall; Report: Credit Suisse Hid Billions from IRS; Combating Racial Bias at Campus; Fewer Air Marshals Protecting Flights; Timberlake Turns Tables on Heckler

Aired February 26, 2014 - 10:30   ET

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

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: But the name of the game for him at this point is really to just keep his eyes on his current job, his day job, to be the governor of New Jersey, to have these kinds of town halls. The last one that he had was about Sandy relief. This is going to be more focused on the big speech that he gave yesterday, which is his budget.

And if you look at the kind of budget that he proposed, of course, everybody looks at tea leaves for somebody who potentially could be president to see where they stand on economic policy. No surprise. He didn't propose any kind of new taxes but he also didn't try to push the Democratic legislature in a way that perhaps he might have on other issues that are important to Republicans like pension reform. Maybe in a way that he would have had he not had the scandal over him -- Carol.

CAROL COSTELLO, CNN ANCHOR: OK, so you said Christie is losing support even in New Jersey but also nationwide. And he wants to run for President in 2016. So what Republican is gaining momentum from that?

BASH: Jeb Bush. Take a look at the latest poll from CBS News and "The New York Times". Jeb Bush is at the top. And if you keep going down, down, down, oh there he is, Chris Christie down up forth.

COSTELLO: Wow.

BASH: 31 percent say that they -- that they would like Chris Christie to run for President; 41 percent say no. Now every time we give these polls obviously, we need to underscore where we are in the calendar. It is the beginning of 2014. This is about 2016.

And -- but still, look. And it also is a known fact. Anybody who covers and pays attention to politics, that these are the times when these politicians really make the decisions and more importantly, people who can support them financially and otherwise make their decisions about who the best candidate is.

So it does matter. And the fact that he is pretty -- pretty far down there is not good news for Chris Christie.

COSTELLO: Dana Bash, reporting live from Washington, this morning.

Checking other "Top Stories", beginning in the Ukraine just days after ousting a president that had aligned himself with Moscow, pro-Western demonstrators clash today with protesters loyal to Moscow. The scuffles have since died down. Even as Russian President Vladimir Putin possibly ratchets up the tensions. Earlier this morning, Putin ordered surprise military exercises for his troops in an area bordering Ukraine.

Arizona Governor, Jan Brewer, says she is still considering arguments from both sides of a bill that would allow business to cite religious beliefs and deny service to gay customers. Gay rights activists say that's discrimination but supporters say it would protect religious freedom. That's an argument rejected by some Arizona clergy.

(BEGIN VIDEO CLIP)

REV. TROY MENDES, DEAN, TRINITY EPISCOPAL CATHEDRAL OF PHOENIX: We feel that this bill actually flies directly in the face of our religion. One of our core values as Christians, we believe is to love your neighbor as yourself. This bill is seeking to under a guise of religious freedom it's seeking to give people license to discriminate. That doesn't love your neighbor as yourself.

(END VIDEO CLIP)

COSTELLO: In the meantime, more national companies are urging a veto with a deadline just a few days away. Some of the latest additions AT&T, Delta Airlines, Intel, PetSmart and Yelp they joined the earliest opponents of this bill including American Airlines, Marriott and Apple.

A scathing senate report accuses Credit Suisse of helping wealthy Americans to hide billions from the IRS. And it was allegedly quite an elaborate operation with money hidden in panty hose, secret meetings in hotel lobbies all with absolutely no paper trail. Is it fact or fiction and what can Congress do? Christine Romans is here with answers. Good morning.

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Good morning Carol. The top brass at the Bank of Credit Suisse right now are on the Hill, they acknowledge the behavior they say they have cleaned it up. But you know Carol, senators are furious that this went on for so long. And if the government, the U.S. government, didn't do more to stop it. No question. Today, right now, we're getting a very good look at the lifestyles of the rich and greedy.

(BEGIN VIDEOTAPE)

ROMANS (voice over): The numbers are shocking. According to the senate investigation, up to $12 billion was being held by Credit Suisse and about 95 percent of all that cash not reported to the IRS.

SEN. CARL LEVIN (D), MICHIGAN: Only one percent of Credit Suisse's U.S. customers with Swiss accounts had been provided to the United States authorities.

ROMANS: But perhaps more shocking, how the bank and its clients are accused of pulling it off. Remember this scene from "The Wolf of Wall Street".

UNIDENTIFIED MALE: We don't work for you, man.

UNIDENTIFIED MALE: You have my money, technically, you do.

ROMANS: These clients are accused of strapping their cash in even more inventive places trying to get their money out of the U.S. and into the Swiss bank. Senator John McCain slammed the cloak and dagger practices saying --

SEN. JOHN MCCAIN (R), ARIZONA: Some of the tactics the bankers use to help their U.S. clients evade paying taxes belong in a spy novel.

ROMANS: Among the alleged hiding techniques, a quarter million dollars stashed in panty hose. A senate report details a clandestine meeting in a fancy hotel where bank statements were exchanged, hidden in a "Sports Illustrated" magazine. And investors pretended to be tourists but instead were smuggling in the cash.

Here at the Zurich airport, senate investigators say the bank even set up a branch inside so that its customers could pop in and out easily. And like something of James Bond clients were transported in secret elevators remotely controlled by the bank.

MCCAIN: It's past time to fully and clearly expose how offshore tax havens, banks, help American account holders evade paying their taxes.

COSTELLO: Now, the senate committee is trying to track the cash asking the bank to hand over the names of those Americans hiding their cash with them.

LEVIN: The Department of Justice needs to use the tools in its arsenals to collect the taxes owed and to hold to account taxpayers.

(END VIDEO CLIP)

ROMANS: Now Credit Suisse acknowledges, it acknowledges the misconduct and says it had previously occurred at the bank and that a small group -- a small group of these Swiss-based private bankers had violated its policies without the knowledge of executive management. They say that they have closed that particular division. The bank says hiding income and assets is unacceptable. It is cooperating with U.S. investigations.

But Carol I'll tell you right now those senators want the DOJ to make sure that they have more names -- more names than just a few hundred American rich people who were hiding money in Swiss Bank accounts. They want more names they want to know who it was -- Carol.

COSTELLO: Interesting I hope they get those names. Christine Romans many thanks.

Still to come in the NEWSROOM, a noose hanging on the statue of a civil rights icon n a college campus. No this isn't the 1960s this is 2014. Now, at a different university, some students are protesting. Now they are demanding an end to racial bias. (COMMERCIAL BREAK)

COSTELLO: Tough question for you this morning. Are today's youth color blind or are millennials just as prone to racism and racist attitudes at America's older generations? Just take a look at some of the recent disturbing racial incidents at our nation's universities like at Ole Miss where a noose was placed on the statue of James Meredith, the first black student to enroll there in 1962. A fraternity was suspended after three of its members were suspected of placing that noose on the statue.

Remember these pictures from a fraternity party at Arizona State University? They called it an MLK Black Party and told people to wear jerseys and drink from water melon top. That fraternity also suspended.

Now students at another university are calling for change. The Black Student Union at the University of Michigan protested on MLK Day demanding the school to make reforms to increase black enrollment. Enrollment for blacks at Michigan dropped from 6.4 percent in 2006 to 4.6 percent in 2012. That drop comes after Michigan voters banned the use of affirmative action at public universities.

Joining me to talk about all of this, two students from the University of Michigan's Black Student Union, Robert Thomas Greenfield IV and Arnold Reed and CNN political commentator Marc Lamont Hill who is also a professor at Columbia. Welcome to all of you.

ROBERT THOMAS GREENFIELD IV, UNIVERSITY OF MICHIGAN: Thank you for having us.

ARNOLD REED, BLACK STUDENT UNION, UNIVERSITY OF MICHIGAN: Thank you.

COSTELLO: Thanks for being here. So Arnold, I want to start with you. How has falling enrollment affected race relations on campus?

REED: Race relations have been especially tense especially with low numbers. We feel as if the low numbers we are very marginalized. And there is not enough of us to really make a strong enough coalition to enact the change that we need to become more comfortable on campus. So definitely to answer your question that falling enrollment has very significantly impacted our community.

COSTELLO: And Robert, give me specific details, how has it impacted things at the University of Michigan?

ROBERT THOMAS GREENFIELD IV, BLACK STUDENTS UNION, UNIVERSITY OF MICHIGAN: So obviously having a strong presence on campus directly correlates to that expression in student life. Even before the implementation of Prop 2 in 2006, blacks at the University of Michigan was the fastest declining population.

So you feel a little bit more isolated. And you have to go through those small micro aggressions, whether it be overlooked in class or just not having a better sense of community than you thought you were going to have when you were enrolled. COSTELLO: And Marc, I want to pose this question to you. Because I know that the majority of universities across the nations want a diverse student population because you know that's the way the world is. And plus, you need the best minds from every minority to learn together. So why is this happening at Michigan do you think and is it happening at other places as well?

MARC LAMONT HILL, CNN POLITICAL COMMENTATOR: Oh it's happening all over. So many universities are now being compelled to not use race or ethnicity as a factor in enrollment decisions. It's part of this broader project of becoming post-racial and as you mentioned earlier or color blind. The problem is color blindness is not something we should aspire to.

I don't want to live in a world where I don't see race. I don't want to live in a world where I don't see racial difference, I do want to live in a world with someone's race is not a demerit or it doesn't deny you access to thing. I don't want to be post-racial. I want to be post-racist.

And unfortunately at places like Michigan their efforts to deny race or the existence of race has resulted in the dwindling numbers of students which makes them more marginal which makes them more isolated, which makes them easier for them to not to get the support and care that they deserves.

And quite frankly it emboldens the majority of students to do crazy things like hang up nooses or have gangster hood parties on Martin Luther King Day because there's not collective response from the institution. Because the institution doesn't want to acknowledge that race exists in the first place.

COSTELLO: Well some white students might disagree with you. And I'll pose this question to you Arnold. One white student told "The New York Times" that white students that plan black theme parties for example, quote, "don't mean to be offensive." And said it's quote, "not a conscious racism. It is subconscious." Do you agree?

REED: You know, when it comes to that, I want to say that the party specifically that happened at our campus also targeted women. And so there were a lot of sexist elements that went into that too. I believe that those parties that use those kinds of crazy themes is really a call that people want to experience black culture they want to learn about new things. But they just have to find ways to do them productively in ways that don't make other students feel less than they are worth.

COSTELLO: So Robert, do you feel the same way? Is it a matter of maybe enlightening fellow students?

GREENFIELD: I do think that it is due partly to a lack of cultural intelligence on campus. And I think again it's willful ignorance cultivated with a lot of misappropriations of other people's cultures.

But you know some people just given how they were brought up don't truly understand that you have to respect certain limitations regarding other people's cultures. But I think you know to comment on the color blind policies, you know albeit intuitive, many of those polities blatantly disregard the historical context that each of those communities live in.

So it's really important to take that into account when interacting cultural with somebody else.

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COSTELLO: And Marc, just to illustrate further that these young men know what they are talking about. "The New York Times" sites that racial complaints against colleges jumped by more than 50 percent from 2009. Is the lack of affirmative action policies the reason for that or is it more than that?

LAMONT-HILL: I think it is a few things. One thing we have seen for sure even in the age of Obama, during the Obama presidency is the rise of racist organizations, the rise of white nationalist groups and the rise of discrimination lawsuits across the country. I think there's a broader zeitgeist here that we have to think about.

But absolutely, eliminating affirmative action creates a different type of environment on campus. It decreases the number of protections on campuses. It makes it more difficult to raise targets. We have convinced ourselves that acknowledging the very existence of race is somehow an act of is racism, acknowledging that there are black people on campus and having programs and dormitories and other institutions designed to protect their interests and their well-being on campus is a bad thing. And as a result of all of that, in this anti-affirmative action sentiment, we see the rise of discrimination. We see the rise of complaints and we see more and more isolation and marginalization of students.

That's why we need to respond by saying again, acknowledging race is OK, acknowledge differences is OK. We need to invest in difference. And remember having a diverse campus isn't just to the benefit of black students. We think somehow that putting black people on camp helps the black kids at Michigan. It also helps the white students at Michigan. It makes everybody smarter. It makes everybody better when we have a diverse world.

COSTELLO: Absolutely. We'll continue the fight, Arnold Reed, Robert Thomas Greenfield IV and thanks to you Marc Lamont Hill. I really appreciate it. Fascinating conversation.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The Department of Homeland Security has cut the number of federal air marshals. Those are the undercover officers who protect planes terrorists and other potential violence on board planes. The cut is described in an internal government e-mail obtained by CNN. Aviation and government regulation correspondent, Rene Marsh, has more now. Why reduce the federal air marshals' ranks? RENE MARSH, CNN AVIATION AND GOVERNMENT REGULATION CORRESPONDENT: Well, Carol, you know, when you talk to critics, they say it is a dangerous move and it really leaves airplane security vulnerable. Over the past three years, we have found out the number of plainclothes officers on board flights has been cut.

Air marshals, as you know, they're supposed to protect aircraft from terrorists. But according to that e-mail obtained by CNN, a budget crunch has caused the federal air marshal work force to down size. Now we don't know how many are on the government payroll. And we don't know how many positions have been eliminated. The government says those numbers are secret for security reasons.

Now the vice president of the Federal Law Enforcement Officers Association, which represents air marshals had this to say. He says, "Are the recent reports of ramped-up attempts by al Qaeda regarding shoe bombs and liquid explosives somehow being swept under the rug or ignored by TSA management? Can they honestly feel or convey that the threat to aviation security is somehow lower at this point in time?"

Now we should point out workforce cuts have happened over the past three years. We do not know whether staff cuts happened after the toothpaste and shoe bomb threats, because the government, again, says those numbers are secret.

One last thing -- we know that six of the agency's 26 field offices will be shut down. THS says those officers will be relocated -- Carol.

COSTELLO: Rene Marsh, reporting live. Thanks so much.

Still to come in the NEWSROOM, first rule in customer service, know your policy. Delta learning that lesson the hard way and facing the wrath of some very angry mothers on Twitter. That story is next.

(COMMERCIAL BREAK)

COSTELLO: Adidas is announcing it will stop selling this world cup T- shirt. Take a look. That's after Brazil's tourism ministry complained it links the country with sexual activity. In a statement Adidas said, "Only a limited number of the shirts were made. And that they were only available to buy in the United States." Adidas is the official sponsor of the World Cup which kicks off June 12th in Sao Paulo.

Delta was forced to apologize after a customer service representative on Twitter made a mistake about the airline's breast feeding policy. A mother from California took to Twitter to ask about flying with her infant son. She said he wouldn't take a bottle or breast feed while he was covered up with a blanket.

A Delta representative tweeted back writing that this mother would need to cover up if she wanted to breast feed on board that plane. Well mom got furious, Twitter erupted until finally Delta stepped in to correct its own mistake and told the concern mother she would be allowed to breast feed on flights without a cover. Finally, we wanted to leave you with a video that's getting a lot of attention online. Justin Timberlake heckled at a concert in Philadelphia. But not so fast, J.T. turned the tables and took the teasing in stride.

Here is CNN's Jeanne Moos.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Justin Timberlake has given us a heck of a lesson in how to handle a heckler. In this case a female with an upraised finger.

JUSTIN TIMBERLAKE, SINGER: Why are you flipping me off? You got second row to flip me the bird? That makes no (EXPLETIVE DELETED) sense.

MOOS: Though this concert in Philadelphia took place back in November, it's only now gone viral. The heckler said she wanted Timberlake to see her. Timberlake imitated her getting ready for the concert, planning her finger-wagging, attention-getting strategy.

TIMBERLAKE: You know what? I know what we should do.

MOOS: The fan who shot this video won the concert tickets and a trip to Philly in the contest.

STEPHANIE LOUGH, JUSTIN TIMBERLAKE FAN: He's so charming. He's so charming.

MOOS: Stephanie Lough was especially impressed with how he handled the heckler.

LOUGH: I've seen a lot of comedians get heckled. Usually, they kind of throw it back at the person, kind of insult them.

MOOS: Daniel Tosh (ph) for instance is known for dishing it out to hecklers.

UNIDENTIFIED MALE: We're going to edit you out. Like your parents wish they could?

MOOS: How about comedian Jamie Kennedy who was interrupted when he used the word "waitress"?

UNIDENTIFIED FEMALE: They're called servers.

JAMIE KENNEDY, COMEDIAN: Well, I'd like you to serve your mouth shut.

MOOS: But Justin Timberlake wasn't serving up put downs.

LOUGH: He made it really positive. He made it -- he laughed at it. He got the whole crowd laughing.

MOOS: He turned the finger into a kumbaya moment.

TIMBERLAKE: OK, let's all do it at the same time so we get this over with.

MOOS (on camera): OK. So, if that's the perfect way to handle a heckler, what would be the imperfect way?

(voice-over): Ask Kanye West.

When fans asked Kanye to take off the mask he was wearing, Kanye took it personally.

KANYE WEST, MUSICIAN: Are you trying to tell me how to give you my heart?

MOOS: He had security remove the fan.

WEST: Do I look like a (EXPLETIVE DELETED) comedian?

MOOS: Well, we wouldn't have mistaken him for Justin Timberlake --

TIMBERLAKE: OK, let's all do it at the same time so we get this over with.

MOOS: -- who's put his finger on how to handle a heckler.

TIMBERLAKE: That's also the weirdest moment I've ever had with a crowd. Thank you.

MOOS: Jeanne Moos --

(on camera): So, thumbs up for the middle finger.

MOOS (voice-over): -- CNN --

LOUGH: He does deserve a thumb up or his finger up.

MOOS: -- New York.

(END VIDEOTAPE)

COSTELLO: That story for my producer, Amy, who loves Justin Timberlake. That's the only reason we ran that today. Although it was a great story, Amy.

Thanks for joining me today. I'm Carol Costello.

"@THIS HOUR" with Berman and Michaela starts now.

JOHN BERMAN, CNN HOST: The secret Clinton files, a huge trove of documents about Bill and Hillary Clinton. What do they say? When will they be released? And why it puts President Obama in a bind.

MICHAELA PEREIRA, CNN HOST: A baby with three genetic parents tick parents. Scientists say they can do it but should they? Who gets custody? Who has legal rights? The controversy of this genetic tinkering.

BERMAN: And he shook up the world or was it the mob?