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Dow Increases As Banks And Regulators Take Action; Ban On "Lap Babies" On Airplanes Urged By Flight Attendants; Family To Exhume Body Of 19-Year-Old Found Dead Near Murdaugh Home; Los Angeles School Workers Set To Strike; More Black Men Required As Educators. Aired 10:30-11a ET

Aired March 20, 2023 - 10:30:00   ET

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


[10:30:00]

ERICA HILL, CNN ANCHOR AND NATIONAL CORRESPONDENT: U.S. stocks opening mix this morning, following a coordinated effort by the Federal Reserve and other central banks to keep dollars flowing and head off of banking crisis. We're looking at the Dow right now, up about a percent, that's a win.

JOHN BERMAN, CNN ANCHOR: Yes, that's not some mix, that's pretty good. Over the weekend, Switzerland's biggest bank, UBS, agreed to buy ailing rival Credit Suisse in an emergency rescue deal. CNN business and economy reporter Matt Egan joins us now.

So, does that mean that this did ease concerns, this move? It's hard to tell?

MATT EGAN, CNN BUSINESS AND ECONOMY REPORTER: John and Erica, I mean, listen, the markets are certainly responding well, up 300 points, but this is after a series of losses we've seen, you know, in the last week or so. I think that, you know, there's obviously a confidence problem, right? I mean, banking is a confidence game. Too much confidence is bad because its reckless deal making.

BERMAN: Hubris.

EGAN: Hubris, exactly. But not enough confidence is scary too because that's where we get bank robbed. And so, that's where we are right now. We have this, like, shortage of confidence in the system. So, that's why we have officials really around the world going from weakest link to weakest link in the system, trying to put out the fire before it spreads.

And so, let's look at this UBS-Credit Suisse deal. So, UBS coming to the rescue, $3.2 billion deal, buying this ailing rival. The Swiss government is being forced to sweeten the deal, right. They're putting up $9 billion to take on potential losses that UBS could face, the central bank is providing up to $200 billion of loan.

So, this is the first marriage of systemically important, global banks since the 2008 crisis. And it's kind of forced marriage because regulator, basically, pushed UBS to do this, right. They didn't want to buy Credit Suisse. Credit Suisse has been a trainwreck for years. But regulators, basically, forced them to. I mean, this would be like if John's doing the Patriots, was told by the NFL to buy my New York Jets because the Jets just keep losing and it's bad the league. And the Patriots are basically saying, sure, but we're not going to pay full price.

BERMAN: Yes, it would be like, why do we want this junk, right?

EGAN: I don't want to say junk. I don't want to say --

BERMAN: It's a good analysis.

EGAN: Yes, it is. It is. But that's where we are right now in this crisis. And then let's look at regional banks. So, in the U.S. we see regional bank mostly moving higher this morning. One exception is First Republic Bank, that is down, sharply -- this comes after credit ratings. Agencies downgraded the credit ratings of First Republic over the weekend, Moody's cut it into junk -- actual junk, S&P lowered it further into junk.

But one bit of encouraging news, we did get this weekend is U.S. official telling Phil Mattingly and I, that deposits at the small and medium-sized banks, they've stabilized, which is a very good sign. Basically, these deposit outflows have either slowed or stopped pulling out or even reversed, which is, of course, what U.S. officials want to see.

HILL: Which goes back to the whole confidence part of the equation, right? Meaning that the average people here are potentially feeling more confident and they don't feel they have to move their money around.

EGAN: Right, which is great. I mean, we have to remind everyone that FDI insurer -- FDIC ensures up to $250,00 per bank, per borrower. No matter what the bank stocks are doing. The question though, is whether or not this whole crisis end up hurting the availability of loans and mortgages, credit cards, because that's where you get to slow down the economy. And the longer this last, the greater the risk of a recession.

HILL: There we go.

BERMAN: I understand now.

HILL: The Patriots are not buying the Jets.

BERMAN: Yes. No because it's not worth it.

HILL: Just so we're clear.

BERMAN: Credit Suisse worth more than the jets, apparently. Which are worth much. Thank you. I understand it all now.

EGAN: You're welcome.

BERMAN: All right. This morning, flight attendants are pushing to ban parents from holding babies on their laps during flights. They say, it's simply not safe.

HILL: So, at the moment, any child under the age of two gets to fly for free, as long as they are sitting on their parents' laps. CNN Aviation Correspondent Pete Muntean joining us now.

So, Pete, as I understand it, in full disclosure, I threw a lifetime ago when my children were little enough, I did fly with them on my lap. And then I had people say to me that I was crazy because it was dangerous, people who work on planes. This isn't the first time they've asked for this. Is anything different though this time? Might this happen?

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: You know, this has been pushed forward by flight attendants for something like 30 years now, Erica. But this is getting some renewed attention now because this just came up at an FAA safety summit last week. But let's back up for a little bit. Lap babies, that is the industry term for this, child under two can be on the lap free of charge, instead of being in a car seat which is what the safety regulators and the NTSB would like.

[10:35:00]

At this FAA summit last week, which is mostly focused on runway incursions that have been on the rise, the notion that these turbulence issues that are the rise also came up. And NTSB chair, Jennifer Homendy, says there's about two dozen recommendations that the NTSB has made to try and make it so that these turbulence issues just aren't as bad.

There was severe turbulence on a Hawaiian Airlines flight back in December. Of the 36 people on board who were injured, one of the injured was a 14-month-old baby. And the NTSB says, if this is attacked now, if there is something that the FAA can do to require that parents put their child in a seat and strapped in, that would make all the difference. Listen.

(BEGIN VIDEO CLIP)

JENNIFER HOMENDY, NTSB CHAIR: It is most common issue experienced on airliners, and it can be very dangerous, especially if you're not belted in. Make sure you are wearing your seat belt the entire flight, not just portions of the flight, but the entire flight.

(END VIDEO CLIP)

MUNTEAN: The issue here is that in an accident or an incident, or even one of those turbulence issue where it's a survivable thing, a baby that is about 20 pounds, that's about the average pound of -- average weight of 12-month-old baby, under 10 Gs, 10 times the force of gravity, which is something you would easily go through in a crash. That -- they would make that baby weigh about 200 pounds.

So, the big solution here is to put your child in a strapped in front- facing or rear facing child seat. The FAA has specific instructions on its website. In fact, you should be able to make sure that your seat is certified to be on a commercial airliner, look at the label on the side, in the red lettering, it should say, this can be on an airplane, and that is what the flight attendants want. They don't want anybody hurt or killed in one of these incidents.

It's something they've been pushing for, for a really long time. It even dates back to the Flight 232 accident which was back in 1989. And on-board, four lap babies were on that flight, three of them were injured, one was killed. Erica, John.

HILL: And real quickly Pete, I know we're out of time. But you cannot, correct me if I am wrong, when my kids were littler, you can't have them strapped to in a carrier during take-off and landing. So, they're -- they can't even be belted in if they're strapped to in an Ergo or a BabyBjorn at that point, correct?

MUNTEAN: You know, it's something that the NTSB has pointed that too because even in those slings, that poses a special kind of risk as well, especially to a baby's very fragile neck. And so, you really want them to be in the car seat. That is the thing to could change here. And the FAA is going through its re-authorization process, getting the money that it gets from Congress. And so, this could be slipped in as they go through this process now.

BERMAN: All right. Pete Muntean, great to have you on, explaining it so well for us this morning.

Just weeks after the conviction of former South Carolina attorney Alex Murdaugh, the body of a 19-year-old man who was found dead near the Murdaugh family home will be exhumed. Why Alex's surviving son, Buster, is now speaking out.

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[10:40:00]

HILL: New this morning, the only surviving son of Alex Murdaugh is speaking out for the first time now about the death of 19-year-old Stephen Smith. That body is actually set to be exhumed for a private autopsy.

BERMAN: So, Buster Murdaugh is slamming what he calls, "Baseless Rumors" that he was involved in Smith's death back in 2015. CNN's Dianne Gallagher joins us now from Charlotte in North Carolina.

And this is just one of those episodes, this really unusual episodes before this last trial even began, and now we are getting a new chapter here. What's going on? What is Buster's connection to this?

DIANNE GALLAGHER, CNN U.S. NATIONAL CORRESPONDENT: So, look, there is no real connection to this at this point, though there are documentaries, podcasts, social media rumors that have swirled around this. There is new representation for the mother of Stephen Smith, who, of course, is at 19-year-old, nursing student, who was killed in 2015. Now, it was initially ruled as a result of a hit-and-run by the responding officers. And others have said it doesn't actually appear he was hit by a car based on evidence there at the scene. In 2021, SLED released a statement saying that they were reopening an investigation into Smith's death based upon information gathered during the course of the double murder of Paul and Maggie Murdaugh. Now, that is the only connection to the Murdaugh family that has ever been officially made there. SLED has never really commented beyond on what they found that caused them to reopen that. Saying, just on Sunday to CNN, they made progress in the death investigation of Stephen Smith, but the investigation remains active and ongoing.

So, today, Buster Murdaugh released a statement shortly before a press conference from Sandy Smith, Stephen Smith's mother, that said in part, I have tried my best to ignore the vicious rumors about my involvement in Stephen Smith's tragic death that continue to be published in the media as I grieve over the brutal murders of my mother and brother. I love them so much and miss them terribly.

These baseless rumors of my involvement with Stephen and his death are false. I unequivocally deny any involvement in his death, and my heart goes out to the Smith family.

Now, attorneys for Sandy Smith's spoke today, there is a GoFundMe that has raised more than $60,000.

[10:45:00]

And they said that they are going to use that money to petition the court to exhume Stephen Smith's body and hire expert to determine maybe how he was killed, where he was killed. They noted, of course, Erica, John, that they're not law enforcement. It is not their job to determine who killed him, but how he died and get that information to law enforcements so this grieving mother can, perhaps, get answers nearly eight years after her son was killed.

HILL: Wow. Dianne Gallagher, appreciate it. Thank you.

Still to come here, could there be a strike, perhaps, tomorrow shutting down the nation's largest school system? Stay with us.

(COMMERCIAL BREAK)

[08:50:00]

BERMAN: The second largest school district in the nation could be shutdown tomorrow if school workers in Los Angeles begin a three-day strike as planned.

HILL: So, the union representing cafeteria workers, bus drivers, custodians, and teachers' aides is calling for pay raises, more full- time work, and respectful treatment.

BERMAN: CNN's Camila Bernal joins us now live from Los Angeles. Now, Camila, teachers say they will not cross the picket line. So, what might be happen tomorrow and how many students could be affected?

CAMILA BERNAL, CNN NATIONAL CORRESPONDENT: John, Erica, good morning. Well, schools will be likely closed tomorrow, that's what might happen. And it's because you can't necessarily open a school without the bus drivers and the custodians. But you really can't open schools without the teachers who are joining in in solidarity. And there's more than half a million students here in Los Angeles County that will be impacted. This is the second largest school district in the nation. And both sides say that this will have implications all across the U.S.

The superintendent saying whatever comes out of this agreement is going to be historic in the amount of money that these workers will make. And the union is saying that this is going to be extremely important and should be a wake-up call for elected officials all over the country, to invest in education.

Now, what is interesting here is that the union says that this strike, in particular, is not about the money. They say, this is about how some of its members have been treated after they started asking for that money. Now, we talked to both sides and here is what they're saying.

(BEGIN VIDEO CLIP)

MAX ARIAS, EXECUTIVE DIRECTOR OF SEIU LOCAL 99: Some have been harassed to the point where they lost their job, they lost income.

ALBERTO M. CARVALHO, LOS ANGLESE USD SUPERINTENDENT: We have not been presented with compelling evidence that there is widespread abuses. Are there issues? Yes. Each one of them is vigorously investigated.

(END VIDEO CLIP)

BERNAL: And look, the school district doing everything it can to keep these schools open. They went to a state labor board, saying that this strike is likely illegal. We're waiting for a decision from the board. But in the meantime, they're preparing for schools to close. The superintendent says he's very worried about how harmful this could be for students who need to be in the classroom, who maybe need school lunches.

But the union says, look, they understand and they are concerned about the students as well, but they're going to continue to push for what they believe is fair. Now, of course, this whole situation leaves thousands of parents here in Los Angeles County trying to figure out exactly what they're going to do with their children this week.

BERMAN: Yes, a big struggle for a lot of families. Camila Bernal, thank you very much.

HILL: Well, schools across the country, as we've been talking about for some time now, have been feeling with teacher shortages and black male teachers are in specially short supply. In fact, a new national study found just 1.3 percent of public schoolteachers are black men, 61 percent are white women.

BERMAN: Nicquel Terry Ellis is a CNN senior writer on race and equality. Talk to us more about these numbers and what's being done to try to get more black men into the classroom.

NICQUEL TERRY ELLIS, CNN SENIOR WRITER, RACE AND EQUALITY: Erica and John, this is actually a very layered issue here. I've spoken with several nonprofit leaders and black male teachers in the last month, and they said there are a lot of challenges to recruiting black men into teaching, including the pay, including racial bias that some black men have faced as students, and simply don't want to return to the classroom.

Now, several nonprofits have launched in recent years. They're focused on recruitment and training for black men, trying to get black men that on-the-job training so that they feel comfortable teaching in the classroom and they can learn the ropes of teaching and get that on- the-job training. It's just so important to get that on-the-job training because this key to recruiting them at a younger age and helping them to reach, you know, the point of being able to teach is so important.

HILL: You talk about their own experience in school being a barrier in many ways. We know how important representation is. It matters. It matters to those students, too, to see someone who looks like them at the head of the class.

ELLIS: Yes, a study that was released last week, actually, shows that children perform better in school and develop better problem-solving skills when they are taught by a teacher of the same race as them, which makes it even more important to have more black men in the school teaching in these classrooms. Both parents and advocates say that we need more role models. We need more role models, more black men to help come in the classroom and teach young black men and be that father figure that some are lacking even at home, and even to help close the achievement gap.

We know in some districts, the white students are outperforming black students with test scores, graduation rates. All of that is just so important. And there's this current political battle right now about teaching black history in the classroom. The hope is that, bringing in more black men as teachers can help to build -- rebuild that trust that black teachers (ph) are having in the school districts right now.

[10:55:00]

BERMAN: All right. Nicquel Terry Ellis, thanks so much for being with us, helping us understand this important issue.

ELLIS: Thank you.

HILL: And thanks to all of you for joining us today. I'm Erica Hill.

BERMAN: And I'm John Berman. "AT THIS HOUR WITH KATE BOLDUAN" starts after a quick break.

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