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Obama's EPA Plan Slammed as "Job Killer"; White House Broke the Law with the Prisoner Exchange; Alice from "The Brady Bunch" Dies

Aired June 02, 2014 - 10:30   ET

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

CAROL COSTELLO, CNN ANCHOR: Good morning. I'm Carol Costello. Thank you so much for joining me.

The Obama administration will unveil its latest efforts to fight climate change today -- new EPA regulations that would require a 30 percent cut in carbon emissions by the year 2030. CNN is monitoring this event. We'll bring you updates as we get them. You see there almost ready to go. Now this is a move that some Republicans and members of the business community say will cost the economy thousands of jobs and some $50 billion a year.

And they aren't the only ones criticizing this new EPA plan. A high profile Democratic senate candidate Kentucky's Alison Lundergan Grimes is not keeping quiet about her dislike of the President's plans.

(BEGIN VIDEO CLIP)

ALISON LUNDERGAN GRIMES (D), KENTUCKY SENATE CANDIDATE: I don't agree with the President's war on coal. I think it's wrong for Kentucky. As Kentucky's next United States senator, I will fight to make sure that coal has a long-term place in our national energy policy that we actually have the funding to implement clean coal technology and we restore coal to its rightful place as a prime American export.

(END VIDEO CLIP)

COSTELLO: All right. And let's talk about this. Joining me now, is CNN Erin McPike, CNN's senior Washington Correspondent Joe Johns and CNN political commentator and columnist for "The Blaze" Will Cain. Welcome to all of you.

WILL CAIN, CNN POLITICAL COMMENTATOR: Thank you.

COSTELLO: OK Will I'm going to throw you some red meat.

CAIN: Oh.

COSTELLO: Is this a war on coal?

CAIN: Yes, no -- I mean clearly it is. The Obama administration has said as much haven't they Carol. They have said that coal really is the target here. It's the problem. It's the reason for carbon emissions and thus global warming. You know when you listen to Alison Lundergan Grimes what you hear is it's more than a war on coal. It's a war on the economy. That number you quoted earlier, I think $50 billion a year that comes from the U.S. Chamber of Commerce.

But the Obama administration and the EPA itself have said look $8 billion a year. We're talking about real cost. Jobs. seven percent increases in electricity bills. So yes, this is going to have an impact. And you have to ask yourself for what? Global warming, climate change are truly global. If we do this, do we make an impact? Does China not ramp up theirs did they not import more coal cheaper coal because there's less demand here. You have to ask yourself what do you get? Alison Lundergan Grimes is asking it. She's worrying she doesn't get --

(CROSSTALK)

COSTELLO: I know. But and you bring up China. And I think that's a good point. Although I will say China says it's not doing anything because the United States isn't doing anything about climate change. We have no moral authority. They are waiting for the U.S. to act and then maybe they'll jump onboard. Am I right, Joe Johns?

JOE JOHNS, CNN SENIOR WASHINGTON CORRESPONDENT: Yes I think you're right. I mean this is going to make Democrats in coal producing states scramble. There are already signs that Democrats are trying to distance themselves from the EPA's new rules because of concerns that the net effect of the rules is going to be loss of jobs in coal country. There are another pocketbook issue here as well whether electricity rates are going to go up.

So also, I think you have to say there are going to be some legal challenges to the new rules. So that's likely to keep the story in the headlines. The coal industry has very powerful lobbyists and they're going to making their presence known. The upside, Carol, of all this for the Obama administration is that environmentalists are likely to applaud this EPA move even though it's going to be a while before these rules actually start having an impact.

COSTELLO: Yes and there is some wiggle room in these rules, right, Erin? I mean the President and the EPA in part leaving it up to states to figure out how to clean the air.

ERIN MCPIKE, CNN CORRESPONDENT: Well Carol that's right. And Joe was right. Environmental groups are going to applaud this. But I've already heard that we may actually hear some challenges from the left because what this does is cut carbon emissions from the 2005 levels rather than from the 2012 levels which makes it a lot easier to meet these goals by 2030. If it were 2012 levels, it would be much, much harder, Carol.

COSTELLO: OK.

MCPIKE: And the other thing I would point out there though is -- is that states are being given wide latitude in how they're doing this. So they're not mandating any kind of technology. There is a cap and trade component. But there are a number of components about the technologies that they can use.

COSTELLO: OK so Will there's some wiggle room here. The states can decide for themselves how to clean the air in part. Isn't that worth you know doing something about climate change because we must.

CAIN: It's always the argument in the end. We've got to do something right. But there are so many different aspects to doing something, you have to ask yourself is what you're doing legitimate? It is worthwhile, I'm really glad that Erin mentioned cap and trade. Because can we remember five years ago there was a legislative effort to pass cap and trade. And it failed. It used to be that Congress wrote our laws.

Now I understand the Supreme Court has said the EPA has wide latitude. But we as American citizens need to understand this aspect of the debate. We have outsourced a lot of policy to unelected bureaucrats at agencies like the EPA. This is a big deal at least economically. Maybe not for impacting the climate but it is a big deal and it's being made by the EPA.

COSTELLO: But what you say there's a reason for that it's not like Congress is busy like passes laws every day because they're not.

CAIN: But that's how the system is set up.

COSTELLO: I know but it's not working. So what do you do?

CAIN: You do exactly what we are doing. You have debates among politicians that you democratically elect. They sit in those chambers in those fancy buildings in Washington, D.C. and they debate among themselves the future of the American public. You don't outsource it to unelected bureaucrats.

COSTELLO: OK we'll ask Joe Johns. So OK let's say we follow Will's lead here and that there's a debate in Congress. Will anything get done? Will any law get passed? Will any new idea come forth?

JOHNS: Well it hasn't so far quite frankly. And the President has actually pushed on this issue and really hasn't gotten any traction at all on Capitol Hill. So it's not easy to see how they're going to come up with a compromise that satisfies everybody at least to some extent.

COSTELLO: Erin -- go ahead.

MCPIKE: Carol, if I can add there, the cap and trade legislation actually passed the House and eight House Republicans voted for it and then they got primary challenges.

It couldn't pass the senate. And if you remember back in 2009, Harry Reid said he thought it would be easier to get the healthcare law passed than cap and trade. And he was right. They couldn't pass the senate.

But then you saw going into the 2012 presidential elections that Republicans who once supported cap and trade started running away from it. I'm talking about Mitt Romney, Tim Pawlenty, Mike Huckabee who ultimately didn't run and also Jon Huntsman. But Republicans are very opposed to this. And that's why President Obama has to go it alone on this.

COSTELLO: And some Democrats are too.

WILL: And Democrats apparently as well.

COSTELLO: That's right.

CAIN: Right democracy is stubborn isn't it?

COSTELLO: It is, it really is. Erin McPike, Joe Johns, Will Cain many thanks.

CAIN: Right.

COSTELLO: Still to come in the NEWSROOM, golfer Phil Mickelson tries to put a poor weekend behind him as he prepares for the U.S. Open. But will he be able to do that? He's accused of being part of an insider trading probe.

(COMMERCIAL BREAK)

COSTELLO: Phil Mickelson has been off his game and a great big distraction isn't helping much. Mickelson is at the center of an investigation by the FBI and SEC into insider trading. It's the tale of three high rolling people. Mickelson, his friend Billy Walters a well-known sports bettor and golf course owner and billionaire investor Carl Icahn. The question is did they trade information illegally to enrich themselves? Mickelson talked about the investigation at the Memorial in Ohio.

(BEGIN VIDEO CLIP)

PHIL MICHELSON, PROFESSIONAL GOLFER: You know I can't really go into much right now. But as I said in my statement, I have done absolutely nothing wrong.

(END VIDEO CLIP)

COSTELLO: Let's talk about this on the business side with Christine Romans and on the sports side with Andy Scholes. Welcome to you both. Andy, I would like to start with you. Because Phil Mickelson well he didn't play very well.

ANDY SCHOLES, CNN SPORTS: Well you know this is the worst stretch of his career lately Carol. And he hasn't had a top ten finish this year. He hasn't had one actually since last August. He missed the cut at the Masters, which he never does. And you know but the U.S. Open that's the tournament we know he wants to win the most. He finished second a record six times. Runner-up six times. So and that's the only Major he hasn't won yet.

So this one can complete the grand slam. He's going to go practice at the course this week before he plays at the St. Jude classic this weekend. But he said he can't really play worse with this hanging over his head. But it's probably not going to help.

COSTELLO: So despite the drought, he's still a fabulously wealthy man right. I just want to get that clear.

SCHOLES: Behind Tiger Woods, he makes more in endorsements in the golf world than anybody else.

COSTELLO: OK so Christine I just what to get that clear, he's a fabulous wealthy man involved in this probe are two other fabulously wealthy man. So what are they accused of doing wrong?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: And you know I'll tell you, Callaway Golf one of the sponsors by the way is standing behind him. They say you know that none of this affects Callaway or the Callaway brand and that they are standing behind their golfer at the moment. So at least that endorsement stands.

OK so what are they accused of doing? What's happened here is that Carl Icahn, the big activist investor he bought or buying a stock in Clorox in 2011 and then he told the company he wanted to take it over and somewhere along that way for "The New York Times" they started noticing that there were some interesting trades going on. Other people were buying up the stock. It looked like in anticipation perhaps of this takeover news and then they could profit from the run- up in the stock, right.

And so this is all about a 2011 Carl Icahn move to try to buy unsuccessful bid by the way to try to buy Clorox. So Phil Mickelson and Carl Icahn don't know each other apparently. But the guy in the middle, the Las Vegas gambler who plays golf with one and plays poker with the other, that's apparently where this whole relationship goes through.

And what's going to have to happen here is investigators are going to have to piece it together and find out did Phil Mickelson did he know that he was getting any tip on the golf course that was an insider tip that he could profit from or was it just gossip on the golf course that he managed to make a trade on or no trade at all? So that's what they're going to have to figure out here. It's a probe. It's not accusations at this point.

COSTELLO: It's a probe I know, I know so Andy who is Billy Walters?

SCHOLES: Well he's the Las Vegas veteran. He probably schmoozes with a lot of pro athletes and what not, he probably got a lot of good information. That's what you do on a golf course right, you talk business and you talk about sports. And who knows. This could just have come up casually and, hey, that's probably a good investment. Who know but like I said these are just allegations. We don't know if anyone really has done anything wrong but the FBI is looking into it, there has to be some smoke somewhere.

COSTELLO: Is there something down there, I know because in the break Christine, Andy were saying hey might have just let it slip like this stock is about to go wild so invest in it. So maybe Phil Mickelson is as simple as that. ROMANS: But there are so many stock tips that are traded on a golf course. I mean I can't believe it -- bet half of them don't pan out right. So I guess that's what investigators have to find out. Did they know there was something that no one else knew that they were trading on? That's when it becomes insider information and not just a stock tip.

COSTELLO: All right Christine Romans, Andy Scholes, many thanks to both of you.

Still to come in the NEWSROOM, this morning American soldier Bowe Bergdahl is free after spending nearly five years in Taliban captivity. But at what cost? CNN's Becky Anderson has more on the firestorm surrounding this weekend's controversial prisoner exchange.

(COMMERCIAL BREAK)

COSTELLO: Friends and family of Sergeant Bowe Bergdahl are anxious to get the soldier back home. Earlier on CNN's "New Day," Chris Cuomo talked with one of his long-time friends about how she remembers Bergdahl and how the community is preparing to welcome him back.

(BEGIN VIDEO CLIP)

CHRIS CUOMO, CNN HOST: What can you tell us about who he is in terms of the particular nature of his personality?

SHERRY HORTON, FRIEND OF BOWE BERGDAHL: Bowe was trying to explore new things. He was always reading books on different religions and exploring those learning different foreign languages. He was always, always trying to go up the ladder to find the next levels of something to interest him. So he is very curious and very -- I think "curious" is probably the best word.

CUOMO: When we read these things that he said this gets too boring I may go find China and what's on the other side of those mountains. Those are new being taken as potential hints that he was thinking of leaving. Do you offer a different perspective?

HORTON: In the whole time I've known Bowe and I've known him for quite a while, Bowe has never been a quitter. Bowe's never been one to back out of a challenge. Bowe's never been one to stop what he was doing.

So, you know -- on the flip side of that, yes, he was curious but he was also committed to finishing everything that he started.

CUOMO: How is the community -- how is the family dealing with this controversy surrounding the deal now about whether it was worth it and what it may mean? How do they deal with that?

HORTON: Our community right now is taking that in stride. We are more excited about getting him back and having him finally released.

It's been five long years of us hoping and praying that things were going to happen and that he would be home and that's really the focus of the community right now. There isn't a lot of talk any other way. Haley is so close and so tight that all that we have wanted for five years and now that we have is him back and that's all we're focused on here.

(END VIDEO CLIP)

COSTELLO: Horton also says the community never gave up hope that Bowe would one day return. But of course, that dramatic release of the sergeant, isn't sitting well with everyone. Some lawmakers accuse the White House of negotiating with terrorists.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARKANSAS: I certainly believe that the administration broke the spirit if not the letter of the law but again, my major concern is not what the administration did as far as the law is concerned, my concern is what these individuals will be able to do in terms of this release and it's of great concern to all of us.

(END VIDEO CLIP)

COSTELLO: As we've been telling you, five hard-core terrorists were exchanged for Bergdahl's release. These pictures obtained by CNN were released by the Taliban and reportedly show the detainees arriving in Qatar.

Let's bring in CNN's Becky Anderson. She joins us live from the capital city of Doha. Good morning, Becky.

BECKY ANDERSON, CNN CORRESPONDENT: A very good morning, Carol. What we know is that these men were mid to high ranking Taliban officials. The Qatari delegation in Guantanamo Bay for some three days we believe before they were given these prisoners to bring back to Doha, Qatar here.

What we know is that they arrived on Sunday and CNN obtaining this video that you've been watching of those Taliban former prisoners arriving in Qatar. This was shot by pro Taliban media and posted on a Taliban Web site.

What we don't know at this point is where these men are now. That's of grave concern to many people including the lawmaker you just heard from. Are these men in a position secured and therefore not a risk to U.S. citizens in any way? That's the assurance the U.S. Certainly sought from the Qataris. We went out earlier on to see what we could find out if we could find anywhere these men might be.

We went down to what is known as the Taliban embassy here, the Taliban political office which was set up in 2013 and famously temporarily closed. When we got down there, there was nobody around. It's in a very innocuous area, very close interestingly to some U.S. Embassy staff accommodation very close to the foreign ministry here.

We asked a security guard whether he'd seen any action over the past couple days. He said no, he hadn't. I tried to ring the doorbell. Nobody came. We were outside for 20 to 25 minutes. That is what is known as the Taliban embassy here. To a certain extent legitimatizing the Taliban here in Qatar but Qatar mediating these efforts, we've been told on both and off the record now that we won't be hearing anything more about where these men are but certainly of a concern to many people now.

Could they leak out a way from where they are being held as it were and again this is for reporting these men are in accommodation and not in a detention facility for example. We've also been told but I can't confirm that their relatives from Afghanistan have flown in to be with them. Lots of questions still unanswered here in Qatar at this point. Certainly five men now on Qatari ground, this is a small gulf nation state. Nobody knows where they are at this point.

COSTELLO: You should get back to us. Becky Anderson reporting live this morning.

Still to come in the NEWSROOM, this morning fans are mourning the death of Alice from "The Brady Bunch".

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The manual says that in case of a double compound fracture in both arms, the victim must be completely immobilized.

UNIDENTIFIED FEMALE: Will you do me a favor, the next time you ask me to volunteer for something. Immobilize my big mouth before I can answer.

(END VIDEO CLIP)

COSTELLO: A look at the woman behind the smiling housekeeper next.

(COMMERCIAL BREAK)

COSTELLO: The housekeeper with all the answers and funny lines, Ann Davis has died. Of course, she played the much loved Alice in "The Brady Bunch".

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Come on. Who thought that was funny?

That's kind of nice.

(END VIDEO CLIP)

COSTELLO: We always thought she was funny. She died after reportedly falling in the bathroom on Saturday. She was 88 years old. And she was in good health.

Nischelle Turner is live in New York to tell us more about her legacy. Good morning.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Good morning, Carol. I think that was one of the only times we ever saw Alice's hair changed when she got dunked in that pool. You know John Berman this morning said she had a supporting role but she was always in center square in the intro to "The Brady Bunch".

And that's right because she was the heart of that family. You know, that one role defined her in Hollywood and it made America fall in love.

(BEGIN VIDEO CLIP)

TURNER: Millions of Americans welcomed her into their homes for years and she stole our hearts with her witty one-liners.

ANN DAVIS, ACTRESS: Will you do me a favor the next time you ask me to volunteer for something? Immobilize my big mouth before I can answer.

TURNER: Ann B Davis best remembered as Alice from the hit 70s sitcom "The Brady Bunch" became America's most famous and wise-cracking housekeeper.

DAVIS: I appreciate the invitation. But I'm afraid rotten and dirty are going to have to do without me tonight.

TURNER: She helped keep this iconic TV family functioning and her advice always spot on.

DAVIS: Mr. Brady, if a miracle happens, don't question it. Just lean back and accept it.

TURNER: Davis' first big break was on a 1950 sitcom, "The Bob Cummings Show" where she won two Emmy awards for her portrayal of the hilarious forever single secretary, Chelsea.

DAVIS: Income tax time again. This year he gave it to the government in one lump. The trouble is the government gave him one right back.

TURNER: In the late 70s, Davis mostly retired from show business focusing on her faith and volunteering at a Denver homeless shelter.

DAVIS: I have a place in my heart for places like this.

TURNER: She wasn't completely out of the spotlight making a cameo appearance as a truck driver in 1995 "Brady Bunch" movie.

DAVIS: I can't help thinking what might have been if I had taken a different road. Married young, had a family, three boys, three girls. Then a little voice says are you kidding? They probably would just treat you like a maid.

TURNER: Davis will be remembered for helping two widowers raise their six children and for being a mainstay of this nontraditional family as America tuned in.

DAVIS: Some of the happiest moments of my life have been spent right here in this house. (END VIDEOTAPE)

TURNER: Ours too.

You know, actress Florence Henderson played Carol Brady and she wrote a Facebook post on Sunday Carol, where she said "I'm so shocked and sad to learn that my dear friend and colleague Ann B. Davis died. I spoke with her a couple months ago and she was doing great. She will be missed."

COSTELLO: She will be missed. It brings back so many happy childhood memories just to see those clips.

TURNER: I know. I know it does.

COSTELLO: I always wish I had an Alice in my home and I'm sure my mom did too.

TURNER: I'm sure she did.

COSTELLO: Absolutely. Nischelle Turner, many thanks.

Thank you for joining me today. I'm Carol Costello.

"@THIS HOUR WITH BERMAN AND MICHAELA" starts now.

JOHN BERMAN, CNN HOST: Hero or deserter -- that is the question some are asking at this hour as we learn more.