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Acting Target CEO Speaks Out; Teen Stowaway Could Face Charges; Brunei Outrage Hit Beverly Hills Hotel; Boehner: Benghazi Won't Be a Circus
Aired May 07, 2014 - 10:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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CAROL COSTELLO, CNN ANCHOR: Checking some "Top Stories" for you at 30 minutes past the hour.
The driver who tried to follow the First Daughters' motorcade through the White House gates due in court today. Matthew Goldstein was stopped and searched for entering a restricted area. The security breach put the White House on lockdown for about an hour yesterday.
Today President Obama will get a firsthand look at the damage caused by tornadoes that smacked into the central part of our country this week. This morning the President will head to Arkansas. Later this afternoon he'll go to Los Angeles where Steven Spielberg will present the President with a humanitarian award.
"American Idol" winner Clay Aiken is still waiting to learn if he won a North Carolina congressional primary. Aiken received 40 percent of the vote narrowly edging out opponent Keith Crisco but for now the race is too close to call.
It's been a rough year so far for retail giant Target. And I think that's an understatement. Its stock price is down more than eight percent since December's massive data breach that exposed millions of shoppers' personal information. On Monday the company's chairman and CEO stepped down with the CFO John Mulligan temporarily taking the reigns.
CNN's Poppy Harlow is here. You talked to him exclusively.
POPPY HARLOW, CNN CORRESPONDENT: Yes.
COSTELLO: And I imagine he has a tough road ahead.
HARLOW: Yes he certainly does. He's stepping in after the surprising departure we talked about on Monday of the CEO who have been at the company for 35 years. Now the first question I had is have you gotten to the bottom of what caused this massive data breach. Remember 110 million people affected this is huge and they still haven't they are still investigating internally. They say they are close to being at the end of that investigation but they still don't know and this happened and ended in mid-December.
So it gives you a sense of the scale. I can also say that we talked a lot about consumer safety because people want to trust and know that their data is safe at Target if they use their credit card, their debit card, et cetera.
Here's part of that exchange.
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HARLOW: You know many people might be scratching their heads when you say we haven't got to the bottom of what happened, we're still working on it but customers are 100 percent safe shopping at Target with their debit and credit cards. How do you know that?
JOHN MULLIGAN, CEO, TARGET: Well I said guests can shop with confidence. And last week we talked about the significant remediation steps we've taken starting with bringing in a new chief information officer. But beyond that as I said we've increased significantly our anti-virus protection putting in place tools like white listing so only the software that we want to run on our point of sales systems can run on our point of sales systems. We hardened our perimeter with increased two back drop on occasion taken significant steps beyond that and we're accelerating our chip and pin technology so we have made significant progress in remediation.
HARLOW: Right.
MULLIGAN: And our guests can shop with confidence today.
(END VIDEO CLIP)
HARLOW: And we're going to know Carol in a few weeks if those guests are trusting Target again and coming back. Their earnings are going to come out. We saw sales fall about 2.5 percent after this happened. They got downgraded by a major rating agency. Spent tens of millions of dollars on this. It's been a big blow but he indicated to me that things are turning around for them.
COSTELLO: I was just going to say if I was the new CIO, Chief Information Officer, I would put out an ad on television everywhere touting my new security measures that I have in place so shoppers can feel safe.
HARLOW: Right maybe they will.
COSTELLO: Yes maybe I'll pass that along to them. I was just curious did -- did he admit to you that the CEO stepped down because of this breach?
HARLOW: No. So that's a question that I asked him as we talked about on Monday Greg Steinhafel who have been at the company for 35 years left on Monday resigned. And I say you know did you find anything that indicated that this was mishandled? Is that why he left or why did he leave and he said to me a number of times this was a decision between Greg and between the board and that's where they left it.
But you know I will say that this is something that so many companies are facing. Neiman Marcus went through it or may face in the future that how they deal with this and regain consumer trust is front and center. And I think I know -- we know the whole retail landscape is changing and proof is in the pudding here that it could happen to a company like this, a big company with sophisticated technology to prevent this and affect 110 million people. And I think that you know people need to buckle up and be aware that this can happen. And they still don't know exactly what caused it.
COSTELLO: -- which is the scariest part actually. Poppy Harlow, thanks so much.
The teenage stowaway who survived five plus hours in a plane's wheel well he could now face criminal charges. Today newly released video shows the teenager after the flight. You see him stumbling on the tarmac after supposedly he came out of that wheel well. Certainly it seems like he did.
CNN's Dan Simon is following the story from San Francisco. Tell us more.
DAN SIMON, CNN CORRESPONDENT: Good morning Carol. Well the boy is back in California but of course he spent several days in a Maui hospital. And when you look at this video, it matches exactly what we heard from the very beginning that he appears to be stumbling that he looks disoriented after coming out of that wheel well. Take a look.
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SIMON (voice over): This newly released airport surveillance video clearly shows someone emerging from the rear of the plane. Authorities say it's the 15-year-old California stowaway coming out of the wheel well of the Boeing 767 that landed in Hawaii. Moments later it appears the young man is dazed as he walks on the tarmac.
MILES O'BRIEN, CNN AVIATION ANALYST: You can see he's obviously affected by five and half hours well above 35,000 feet. And he staggers around and he's clearly affected.
SIMON: The boy continues walking until he gets past the stairs of the jet way. Eventually you see him talking with an airport worker wearing a yellow vest. If there were any lingering doubts about the young man's story, this video should put that skepticism to rest.
EMANUAEL GOLLA, CLASSMATE: From what I know of, he was a really shy person. He didn't even talk a lot. He mostly kept to himself.
SIMON: The reserved high school sophomore identified as Yahya Abdi told investigators he was trying to get to Somalia to see his mother and had no clue where the plane was headed. It's believed that he hopped a fence at the San Jose airport shortly after 1:00 a.m. on April 20th and stayed on the grounds for nearly seven hours before the plane took off.
Medical experts say the lack of oxygen and subzero temperatures at high altitude put the boy in a state of hibernation.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Because of that hibernation he may not have needed as much oxygen. And that may be how he survived.
SIMON: He's now back in California and in the custody of child welfare officials. But local police want to conduct another round of interviews. They tell us they haven't ruled out charges. If it's anything, it would be trespassing, though as some have noted his disorienting journey would have been punishment enough.
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SIMON: Well it's not clear when or even if the boy is going to be returned to his family and Carol it's also not clear if he's going to have any lingering medical issues going forward. Back to you.
COSTELLO: But what about these possible charges? What could they include?
SIMON: Right now they're just talking about trespassing which is a misdemeanor in California. He's a juvenile so it's unclear if he would receive some kind of juvenile detention or a possible fine but pretty minor charge at this point -- Carol.
COSTELLO: He seems to be a very troubled teen. Dan Simon, thanks so much.
Republican House Speaker John Boehner talks about the Benghazi committee promising that quote, "It won't be a circus." But will it? We'll take you live to Washington next.
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COSTELLO: It's a long way from southern California to Brunei but big name stars are hoping their voices can be heard all the way from there. The small Muslim nation of Brunei is in the South China Sea. It's adopted Sharia Law along you know with stoning and flogging punishments for women who commit adultery and gay sex. Protesters of the law are setting their sights on the Beverly Hills Hotel which is tied to Brunei's Sultan.
CNN's Kyung Lah has more for you.
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KYUNG LAH, CNN CORRESPONDENT (voice over): New overnight, Beverly Hills Hotel employees packing a city council meeting pleading members to not pass a resolution condemning the laws of a country half a world away.
ANNA ROMBER: It strangles our livelihood, it causes us to be unable to support our children, our families, my sick grandmother in Vietnam.
LAH: But the pleas fail to stop it from passing.
UNIDENTIFIED MALE: With tremendous honor, yes.
LAH: The Beverly Hills City Council resolution targets this man the Sultan of Brunei a small Southeast Asian country. Brunei recently enacted new law Islamist Sharia Law that punishes adultery, abortions and same-sex relationships with flogging and stoning. The Sultan is reportedly worth more than $20 billion and has invested in the hotel chain that owns the story Beverly Hills Hotel.
JAY LENO, COMEDIAN: Maybe people just become aware.
LAH: Celebrities now vowing to boycott the iconic hotel and the entire chain. Richard Branson tweeting "No Virgin employee nor our family will stay at the Dorchester Hotel until the Sultan abides by basic human rights."
LENO: It's all economic. You know how big an impact will it have? Let's find out and see.
LAH: The hotel says the boycott has already cost the more than $1 million but will try to avoid the layoff.
CHRISTOPHER COWDRAY, CEO, DORCHESTER COLLECTION: It's going to hurt our employees. And they have -- this has nothing to do with them whatsoever.
UNIDENTIFIED FEMALE: Everybody turned out --
LAH: Jay Leno's wife Mavis believes that ostracizing the chain is the only potent action capable of getting the ruler to rethink his law.
MAVIS LENO, WIFE OF COMEDIAN JAY LENO: As hard as it is perhaps on the hotels that are being shunned, it's a little bit harder to be executed in a public square and stoned to death.
LAH: Kyung Lah, CNN, Beverly Hills, California.
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COSTELLO: Coming up in the NEWSROOM, Republicans demanding answers on the Benghazi attack. One leader on the Hill promising his new committee's work will not be a circus. Let's take you to Washington for the latest.
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COSTELLO: Checking on top stories for you at 47 minutes past the hour. United States help is on the way to find more than 200 school girls abducted by terrorists in Nigeria. The top Pentagon official tells CNN the aid will include intelligence and hostage negotiations but probably not U.S. boots on the ground.
The terrorist group behind those kidnappings of the school girls now behind another attack on a border town. According to a local senator and several eyewitness, dozens of Boko Haram militants raided a town near the border of Nigeria and Cameroon on Monday night. More than 150 people were killed.
"Tell my wife I love her" -- words from a FedEx security guard after he was shot at a company facility in Georgia last week. He was a newlywed.
Christopher Sparkman -- he's the guy who called 911.
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UNIDENTIFIED FEMALE: Who did it, sir?
CHRISTOPHER SPARKMAN, FEDEX SECURITY GUARD: I don't know. Unknown gunman. He's got a shotgun. I've been shot. I've been shot.
UNIDENTIFIED FEMALE: OK. Stay on the line with me. Stay on the line OK.
SPARKMAN: Will you tell my wife I love her?
UNIDENTIFIED FEMALE: OK, what's your name?
SPARKMAN: I'm losing energy really fast.
UNIDENTIFIED FEMALE: OK. Stay on the line with me. Do you know where you've been shot at?
SPARKMAN: I've been shot in the gut, left side abdomen above my waist. Please hurry. Please God, hurry. I do not want to die.
UNIDENTIFIED FEMALE: Yes, sir. They're on their way to you.
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COSTELLO: Sparkman did survive. He's one of two people still in the hospital though. Four others were wounded. The 19-year-old gunman killed himself.
The house judiciary committee is set to pass a bill today limiting the NSA's ability to collect and store massive amounts of call data. The information would stay with the phone companies instead and investigators could get access to it if needed.
Just moments ago Republican House Speaker John Boehner talked about the special investigative committee on the Benghazi attacks and he insisted his new committee is not going to be a circus.
Dana Bash live in Washington. Do you believe him?
DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Well, you know, a lot of it depends on what's going to happen with the other side, meaning the Democrats. But before we get to that, we should note that the reason why John Boehner says he's relenting in giving in on this select committee, which he opposed for many, many months, is because he says the White House withheld key information in that e-mail we reported about last week that came to light from the deputy national security adviser to Susan Rice sort of, Republicans say, pushing her to be more political than perhaps she should have.
But when it comes to the select committee which they're going to vote on forming in the full House tomorrow, John Boehner did feel the need to explain that it isn't just going to be a witch-hunt. It's going to be fair.
Listen to what he said.
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REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: It was time for us to bring this together into one place and to focus our efforts. This is all about getting to the truth. There's not going to be a side show. There's not going to be a circus. This is a serious investigation.
Listen, our system of government depends on transparency and accountability. We owe it to the future of our country and to the next administration to do our job and to make it clear that the types of activities that may have gone on here are not acceptable in our system of government.
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BASH: Now Carol, when he's talking about the fact that it's not going to be a side show or a circus, he's also talking -- maybe primarily talking at this point to Democrats in the House because we are waiting to find out whether they're going to participate or boycott this select committee altogether.
They have been meeting -- House Democratic leaders -- to try to answer that question among themselves. Where they are now is that they're trying to press House Republican leaders to make the makeup of the committee and the process by which the committee is going to investigate more equitable, more bipartisan than it is right now.
For example, they want -- Democrats want to be in the process, in the deciding process, on subpoena power and things like that. Right now it's much more of a unilateral power that Republicans and the Republican leading that committee Trey Gowdy is going to have.
So it seems as though, our Deirdre Walsh is hearing from Republican sources on Capitol Hill, that Republicans are not likely to give in. They're not likely to change the structure and give in to Democrats' demands to make it more equitable.
And if that is the case, then it's going to be Democrats who are going to have to decide whether or not it is better for them to boycott and just say this is a partisan investigation. We don't want to be any part of it. And not be part of the yelling, if you will that they think that independent voters out there are very upset with, or whether they feel think it's better to be in the room and be a part of it in order to try to beat back some of the allegations and frankly the interrogations, investigation of the Obama administration.
COSTELLO: And so far, the makeup of this committee, seven Republicans and five Democrats, right?
BASH: That's right. And what's interesting though is that talking to several Democratic sources, they're not as upset about the fact that it's not a balanced ratio, that it's not, you know, 5-5 or whatever it would be. It's more about the process. It's more about the fact that they don't feel that they're going to have as much say as they need to have to make it a really balanced investigation when it comes to subpoena power and so forth.
One other note I just wanted to mention, which I think is a big dynamic in the Democrats decision making process here, they have their election in November, the midterm election. They need to look out for themselves. And I talked to sources who say, I mention independent voters, that independent voters are just fed up with the screaming and the yelling in Washington.
And if Democrats participate, then independent voters might see them as part of that. If Democrats don't participate, then perhaps those independent voters who are possibly going to vote Democratic might take another look at the Democrats. That's part of the calculation at least politically that they are thinking about.
COSTELLO: I wish the calculation was just getting at the truth. Wouldn't that be a nice change?
Dana Bash, thanks so much.
We're back after a break.
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COSTELLO: In Kevin Durant's life, every day is Mother's Day. You can see the love when Wanda Pratt shows up courtside to watch the Oklahoma City Thunder's star forward torch NBA opponents. And now you can hear the love between the two for yourself. After winning the NBA's MVP award yesterday, Durant praised his mom.
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KEVIN DURANT, NBA MVP: We wasn't supposed to be here. You made us believe. You kept us off the street. Put clothes on our backs. Food on the table. When you didn't eat, you made sure we ate. You went to sleep hungry. You sacrificed for us. You're the real MVP.
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COSTELLO: Durant and the Thunder take on the L.A. Clippers in game two of their playoff series tonight. That's awesome.
New York's naked cowboy has a new gig. He's joining the ranks of celebrities and sports stars after strumming and singing for over a decade in Times Square. He's now actually selling underwear for Fruit of the Loom. Here's Jeanne Moos.
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ROBERT BURCK, THE NAKED COWBOY (singing): Well, I'm the naked cowboy --
JEANNE MOOS, CNN CORRESPONDENT (voice-over): He's still the naked cowboy, but he has finally changed his briefs. Remember how he strutted around Times Square in his tighty whiteys? BURCK: In my boxer briefs, Fruit of the Loom is the sponsor of my cheeks --
MOOS: After all those years of freezing his butt off, going into a car in a parking garage to change into his skivvies and posing for tips --
BURCK: All right. Don't touch the squishy parts.
MOOS: He's ditched his olds uniform.
And if you ask the naked cowboy --
UNIDENTIFIED FEMALE: Is it boxers or briefs?
BILL CLINTON, FORMER PRESIDENT: Usually briefs.
MOOS: It's boxer briefs for this cowboy.
BURCK: It's funny because they said are you willing to change your underwear? I'm like you think I wore the same pair for 12 years?
MOOS (on camera): Let's see them.
(voice-over): His old tighty whiteys are now blushing red.
BURCK: Easy, buddy. Watch that thing.
MOOS: Fruit of the Loom touts their no ride-up leg.
(on camera): You've come a long way.
(voice-over): Robert Burck started out putting tips in his boots on a shoe string budget.
BURCK: I like to call it a G-string budget.
MOOS: Now, he's got deals ranging from Naked Cowboy Oysters to Fruit of the Loom.
(on camera): He's contractually obligated to wear them for how long?
LINDSAY PORTER, FRUIT OF THE LOOM: The better part of six months or so.
MOOS (voice-over): Folks waiting in line to pose with him.
BURCK: Let's keep it professional, folks.
MOOS: Seem to like the longer leg.
UNIDENTIFIED FEMALE: A little bit more coverage.
UNIDENTIFIED FEMALE: It leaves a little bit more to the imagination.
UNIDENTIFIED BOY: It's flexible. UNIDENTIFIED MALE: I'm not taking no picture of no man in underwear.
MOOS (on camera): But you're in line to take a picture of a man in underwear.
(voice-over): Photos were shown on a billboard high above Times Square. Does he miss his boys' size medium tighty whiteys?
BURCK: And actually these, feel liberated in them. You know, I think they're probably healthier.
MOOS: Turns out the naked cowboy used to wear two pair of Hanes.
BURCK: This is my underwear. This is my outerwear.
MOOS: Once got arrested in Indianapolis and learned that without two pairs.
BURCK: It could be considered indecent exposure.
MOOS: In the 13 years since we first interviewed him, his face hasn't changed much, but his underwear has.
(on camera): Not everybody gets to do that. Maybe they do.
BURCK: Only the best. Only the best.
MOOS (voice-over): Jeanne Moos, CNN --
BURCK: I finally changed my underwear, folks, now shouldn't you --
MOOS: New York.
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COSTELLO: I'm Carol Costello. A fitting time (inaudible) "@THIS HOUR WITH BERMAN AND MICHAELA" -- it starts now.