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UBS Is Buying Credit Suisse In Bid To Halt Banking Crisis; China's Xi To Meet With Putin In Moscow In Show Of Support; France's Macron Faces Another Test With No-Confidence Vote On Pension Reform; West Bank Attack Casts Shadow Over Israel-Palestinian talks. Aired 1- 2a ET
Aired March 20, 2023 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[01:00:23]
LAILA HARRAK, CNN ANCHOR: Hello, and welcome to our viewers joining us from all around the world. I'm Laila Harrak, ahead on CNN Newsroom. Crisis averted. It's one of the world's biggest banks steps into rescue its beleaguered rival. But is it enough to stem the financial panic unleashed by back to back bank failures.
A political meeting in Moscow about Vladimir Putin set to welcome Chinese President Xi Jinping in the hours ahead and the war in Ukraine at the top of the agenda. Plus, after a weekend of violent protests across France, the government is facing a make or break moment as lawmakers take up a no confidence vote.
UNIDENTIFIED MALE: Live from CNN Center, this is CNN Newsroom with Laila Harrak.
HARRAK: And the latest twist to global banking troubles following the collapse of Silicon Valley Bank. Switzerland's largest bank UBS is planning to buy its troubled rival Credit Suisse in an emergency rescue deal. The marriage between the two banks is the latest attempt to calm panicked investors and nervous markets.
UBS will pay nearly three and a quarter billion dollars for the 167- year-old Credit Suisse. That's about 60 percent less than what Credit Suisse was valued at when markets closed on Friday. And UBS will now assume up to $5.4 billion in losses in a deal backed by a massive Swiss guaranteed.
While the deal is expected to close by the end of this year, and is being welcomed by many in the finance world.
(BEGIN VIDEOCLIP)
KARIN KELLER-SUTTER, SWISS FINANCE MINISTER: The bankruptcy of a global systematically important bank would have caused irreparable economic turmoil in Switzerland and throughout the world. For this reason, Switzerland had to take the responsibilities beyond its own borders. (END VIDEO CLIP)
HARRAK: Let's take a look now at how this is impacting stock price as well. Right now we're in Asian markets reacting to this news all are lower. And while U.S. stock futures appear to be flat, mostly. Well to help avert a financial crisis and keep credit available to households and businesses, the U.S. Federal Reserve and central banks in the U.K., the E.U. and several other major economies have announced a joint effort to keep us dollars flowing easily through the global banking system.
Joining me now Dennis Lockhart is the former president of the Federal Reserve Bank of Atlanta. Sir, thank you so much for coming on lots of questions. And we are hoping that you can help put some of these developments into context for us. I think front of mind is have these problems now been resolved?
DENNIS LOCKHART, FORMER PRESIDENT, FEDERAL RESERVE BANK OF ATLANTA: I don't think totally resolved. But certainly the announcement in Switzerland that UBS is taking over Credit Suisse certainly helps calm the international side of the pressures on banks.
We will see in the first couple of days this week, Monday and Tuesday, if new banks or any of the banks that have been rumored to have liquidity pressures, in fact, have them but this is a good step forward to take care of the Credit Suisse issue.
HARRAK: What are some of your concerns right now?
LOCKHART: Well, you have to be concerned that there -- in the banking system, in the U.S. banking system, there are conditions in banks that are similar enough to Silicon Valley Bank that depositors may get nervous and begin to withdraw their deposits and therefore creating a bank run and certainly, all banks have experienced the rising interest rates and all bank size or most banks have been investing some of their liquidity in Treasury and mortgage backed security assets.
So you have to wonder whether they have some of the same problem of duration risk that Silicon Valley Bank had and also the question of whether their deposit base is mostly insured or mostly not insured.
[01:05:10]
In the case of Silicon Valley Bank, it was mostly uninsured deposits. So, those conditions may exist in other banks. And we will have to see if that develops this week as a problem.
HARRAK: So you do believe there will be ripple effects this side of the Atlantic?
LOCKHART: Well, ripple effects for the better I think in terms of Credit Suisse, it just, it removes, to a great extent, it removes the possibility that we're looking at a global banking problems, systemic banking problem. But I think this week, the focus should be on whether the mid-size and regional banks in the U.S. come under deposit withdrawal pressure. HARRAK: Come Monday, or we will be Monday, pretty soon. What do policymakers need to say, to reassure people and reassure markets, what statements need to be made to restore confidence this week?
LOCKHART: I think many of those statements have been made, and they need to be repeated. And that is that the banking system overall is sound is in good condition, it's well capitalized, and there's adequate liquidity. And there is no reason to worry about your deposit. So that's really the message that should be passed.
Also, I think for the more, let's say, financially sophisticated audience, you I think the authorities have to say, we have tools to deal with these pressures. And we will take action as necessary.
HARRAK: What do you make of how regulators have acted in these cases? You know, there's some people asking why they were not able to get ahead of this?
LOCKHART: Well, you know, we have plenty of time to go over all the history that led up to the events with Silicon Valley Bank, and they will be blamed placed on that. You know, I think that the authorities move very, very rapidly. And they move with strong measures as well.
So, I applaud them for that. And I think there's a quite decent chance that this is simply going to be a brief episode that involves one or two banks, and does not spread to other banks in the United States.
HARRAK: What would your message should be to depositors? Is their money safe?
LOCKHART: Well, technically, if they have less than $250,000 was most individual depositors have their money is guaranteed. And I don't know totally how it's going to be interpreted. But at least in the case of Silicon Valley Bank, and Signature Bank, you -- the FDIC stepped up with the support of the Fed saying, We will basically cover all deposits, that's a pretty blanket guarantee that no one needs to worry about getting their money back. There could be timing issues or something like that.
So, I think that's a strong position. It may not be a permanent policy. I think that remains to be seen. But it's a very strong measure to try to quell the, the the turmoil that's going on now.
HARRAK: Dennis Lockhart, thank you very much.
LOCKHART: You're welcome. Thank you.
HARRAK: And the hours ahead, Chinese leader Xi Jinping is set to arrive in Russia for a visit that's likely to be viewed by the West as a powerful show of support for Moscow and President Vladimir Putin. The Kremlin says the two plan to strengthen relations and discuss the war in Ukraine with a one on one meeting kicking off the visit.
The U.S. plans to keep a close eye on developments and watch for any size that China is moving forward with providing military aid to Russia. CNN's Anna Coren is following developments and joins us now live from Hong Kong. Anna, very good to see you. These talks will be as we just said, very closely watched.
ANNA COREN, CNN CORRESPONDENT: Yes, absolutely, Laila. China is, you know, not surprisingly framing this trip to Moscow as an opportunity to promote a peace talks. The U.S. and Europe are highly skeptical of that, but Xi Jinping has made it perfectly clear that China is committed to finding a resolution to this year long war in Ukraine.
He wrote an article in a Russian newspaper that was published this morning, celebrating the close ties between China and Russia. Now last month, China proposed this 12-point peace plan calling for a ceasefire between Ukraine and Russia an end to Western sanctions but it does not address Russia's occupation of Ukrainian territory.
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Now, China's peacemaking credentials were recently bolstered as you may remember, when it facilitated the reestablishing of diplomatic ties between Saudi Arabia and Iran. The Kremlin interestingly claims to be giving the proposal quote, great attention. We know that the Ukrainian president Volodymyr Zelenskyy, said that he is also willing to speak to Xi. There is much talk that virtual talks will happen although that has yet been confirmed.
But Laila, the U.S. isn't buying any of this. It believes that Xi is considering Russia's request to supply with lethal weapons including artillery shells and attack drones. And that this, as you said, is a blatant show of solidarity between the two countries and the strengthening of ties.
These two leaders have met 39 times since Xi came to power in 2012. And, as we know, Xi just cemented his precedent breaking third term in power. These are two men who position themselves as leaders for life and quite frankly, this partnership is about creating a new global order with China firmly at the helm.
The timing is critical for Putin. His invasion of Ukraine has stalled. Military casualties are mounting and just last week, the International Criminal Court, the ICC issued an arrest warrant for war crimes against Putin for war crimes in Ukraine. I mean, he desperately needs a distraction.
As you mentioned, Xi is expected to land in Moscow in just over five hours 6:30 a.m. Eastern Time, 1:30 p.m. local time. There will be an informal lunch at the Kremlin ahead of main talks. Laila.
HARRAK: Anna Coren in Hong Kong. Thank you for your reporting.
While in the hours had justice ministers from around the world will gather in London to discuss the international criminal courts work in Ukraine. It comes just days after the ICC issued an arrest warrant for Mr. Putin, accusing him of war crimes and that condemnation doing little to cow Russia's leader who made a defiant visit to the occupied city of Mariupol driving around the bombed out city that his troops largely destroyed.
While the visit drawing swift backlash from Ukrainian officials with an advisor to President Volodymyr Zelenskyy slamming it cynical, adding quote, the criminal always returns to the crime scene. CNN's Ivan Watson is in Ukraine with more.
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IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): Russian President Vladimir Putin made a surprise visit to the shattered Ukrainian city of Mariupol, fresh from being issued an arrest warrant by the International Criminal Court which has accused him of kidnapping thousands of Ukrainian children and taking them to Russia.
The city of Mariupol this time a year ago was encircled by the Russian military and being bombarded from land, sea and air by Russian forces. There were tens of thousands of residents hiding in the basements of their apartment buildings terrified, drinking rainwater that was being collected in gutters.
I interviewed some of these people as they were shell shocked fleeing that city and describe to me burying their neighbors who had been hit by shrapnel in the front yards of apartment buildings. On this visit, the Russian President arrived by military helicopter drove himself in a short distance to the outskirts of the city to see some apartment buildings that the Russian government has constructed over the course of the occupation of the last year met with a handful of residents who thanked him for giving them new apartments when they had nothing due to the consequences the devastating consequences of the invasion.
A top Kremlin aide described efforts to build new hospitals, kindergartens, and a new drama theater amid the Russian siege of last year, hundreds of residents had hidden in the Mariupol drama theater, which was then subsequently shelled. We don't know how many people were killed in that bombardment. The Russian President trying to show efforts to reconstruct a city that his own military destroyed in the first place. Ivan Watson, CNN, Kharkiv.
(END VIDEOTAPE)
HARRAK: North Korean leader Kim Jong-un says his country should be ready to launch nuclear attacks at any time to deter war. That's according to state media. Mr. Kim was on hand for military drills over the weekend which simulated a nuclear counter attack. He also accused the U.S. and South Korea of expanding their joint military drills by involving American nuclear assets. And he says their aggression means its countrymen as bolster its nuclear deterrence quote, exponentially.
[01:15:03]
Still ahead as protests sweep across France. President Macron faces a test in Parliament and anger in the streets. A look at what's next when you return.
Also had in the Middle East, and American among those shot along a road in the West Bank town of Hawara. We'll have a report.
(COMMERCIAL BREAK) HARRAK: French President Emmanuel Macron is feeling the heat over his refusal to compromise on pension reform. Unions are planning to bring the country to a standstill later this week and the National Assembly set to vote on to no-confidence motions. CNN's Michael Holmes has more.
(BEGIN VIDEOTAPE)
MICHAEL HOLMES, CNN CORRESPONDENT (voiceover): The city of light lit up by crowds of angry protesters over the weekend. Police clashed with rowdy demonstrators venting their fury over an unpopular pension reform bill and the man behind that plan, French President Emmanuel Macron, whose government pushed the overhaul through Parliament last week without a vote.
The reforms have sparked weeks of protests in one of the biggest challenges to Macron's leadership in recent years.
UNIDENTIFIED FEMALE (through translator): It's despicable. Despicable. Mr. Macron is not hearing that the French are in the streets. He's not listening.
HOLMES: Macron says the pension system will go bust if the retirement age is not raised from 62 to 64. But it's an unpopular plan. Opinion polls say about two-thirds of French people oppose the reform.
So to ensure the bills success, the French Prime Minister Elisabeth Borne invoked a controversial executive power last Thursday to bypass a vote in the National Assembly.
ELISABETH BORNE, FRENCH PRIME MINISTER (through translator): We cannot gamble on the future of our pensions this reform is necessary.
HOLMES: Outraged opposition lawmakers filed motions of no confidence which are unlikely to pass as they would require too many different factions to come together to reach a majority threshold of 287 votes.
But it's still a sign of how much anger there is in France. Over the weekend the officers of some MPs were vandalized and painted with graffiti opposing the reforms.
Unions have called for another day of nationwide strikes on Thursday, with one ongoing action causing a particularly nasty stink, garbage workers walked off the job two weeks ago, leaving an estimated 10,000 metric tons of trash piling up.
UNIDENTIFIED FEMALE (through translator): The situation is catastrophic for the residents for the whole of Paris, as well as for the tourists. The most beautiful city in the world. You just have to look at what's going on. It's pathetic. We've seen better.
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HOLMES: It's a potential political mess for Macron who may prevail in Parliament, if a no confidence motion fails to get enough votes, but it's a victory that could set off even more unrest, making for even uglier scenes in the French capital. Michael Holmes, CNN.
(END VIDEOTAPE)
HARRAK: Axel Persson is Secretary of the CGT Railway Workers Union in Trappes near Paris, and he joins me now live from the French capital. So good to have you with us, Axel.
Moments from now, the French government will face to no-confidence votes. Now, if these votes failed to secure a majority, which they need. And as a result, the pension bill is passed, will you accept the outcome -- will your organization outcome?
AXEL PERSSON, SECRETARY, CGT RAILWAY WORKERS UNION, TRAPPES: Well, it is highly unlikely, even though the last days have been very unpredictable, but it is nevertheless highly unlikely that the government will fail to survive the no-confidence motions. But we as organized labor, we don't rely on institutional tools to defend our interests. So we will not accept any other outcome.
But the defeat of the government be through parliament will be through the streets and the structure of the organizing, we will continue the fight until our objectives and demands are met. And those are at least the complete withdrawal of the pension bill.
HARRAK: Well, that was going to be my next question. I mean, what would be an acceptable realistic outcome and short of the government shelving its retirement reform plan completely because it needs to be reformed?
PERSSON: Well, it doesn't need to be reformed in the way that the government pretends because, for example, the government pretends that within 10 year they will be supposed deficit of 10 billion euros. I have to underline the fact that this is within 10 years, because currently the pension system in France actually generate excess funds. So we have more than -- we have billions of funds in excess.
The government is saying that within perhaps 10 to 15 years, there will be a 10 billion deficit that he needs to that they say they need to fill in. But when we take a closer look at it, 10 billion euros is less than the profits of sometimes single corporations in France, that single corporation sometimes they generate more than double, sometimes even three times that amount of profits each year.
So it's a very, very little amount of money. And the government is saying we will not make a shareholders pay, we will not make the corporation's pay, we will not make the banks pay, we will make the workers' pay for that deficit by working more and more and more, despite the fact that our corporations, banks, insurance, you name it, whatever, generates huge amount of wealth and profits every year.
So we will say we will not have it, we will not pay for it. And we will defend ourselves by all means necessary, including general strikes, demonstrations, whatever is necessary to win and defend our interest and to force the government to back down completely.
HARRAK: But that's the private sector. Of course, this is a public issue. What can fix this problem? I mean, policymakers say retirement at 62. It's just not sustainable with people living much longer. I mean, you know, the arguments, I don't have to tell you.
Is there a recognition within the union, that the system currently in place needs to be reformed and brought in line with other European countries?
PERSSON: Well, we do agree that the 62 is not sustainable for many workers who actually reach 62 already in bad health. And, for example, you mentioned very quickly, the waste disposal worker those who take care of the garbage, some of them they never even reach 62 alive because their works are so tedious and difficult, because of the working hours, the fact that they're exposed to chemicals, and garbage, et cetera. So you might be surprised that we are saying, Yes, we do not want to retire at 62.
Our demand is to retire at most at 60, and even 55 and 50, for the most difficult works. And how do we do that? We organize labor, as always done in France and across the world. We fight, we organize, we defend our interest, and we take to the streets. And that's how we will -- that's how we've always managed to gain and secure advances.
And what sometimes seem impossible for many people, once we go on strike, and it's massive, well, suddenly, all of a sudden one situation becomes out of control, or adversaries and government or the employer suddenly everything see that everything becomes possible. This is not the first time we were used to this.
HARRAK: It's not the first time indeed. I mean, this is a recurring, a recurring event almost cyclical. You know, but I'm wondering Axel, at what cost, you know, the reaction to the retirement reforms has been fierce, and we don't want to take away, you know, from the genuine concerns your members have, which you just outlined.
I mean, these are serious concerns that they have, but watching your country in the throes of turmoil, violent protests, major disruptions, businesses are shuts, lawmakers offices vandalized and all of this during a cost of living crisis. I mean, you know, don't you fear that this could spiral out of control even more, and is it worth it?
PERSSON: It's not a question but it is worth or not. The question is do workers have choice.
[01:25:00]
Because the workers do have a choice, one is to accept and bow down and kneel down in front of the government or the other one is basically to refuse to bow down and take a fight take to the streets, take to the resort to industrial action to defend, not only your interests, but also your livelihood, your right to have a dignified existence, because as you (INAUDIBLE) the pension issue is not the only issue workers are facing in France.
They're facing the heightened cost of living, rising inflation, and attacks on pensions, which constitutes the last straw (ph), which basically as the French idiom goes, it's the -- it's what made the bucket fill over. Basically, it's a French idiom, which means that the situation was already very, very tense. And this is just what made it explode, basically, because the situation is very difficult all across the country.
So we are resorting to what is needed to defend our interests, not only in terms of pensions, but to resolve all the issues we're facing, and is it worth it? Well, we don't really have a choice. So we will do what is necessary, as a great American activist said, We will fight with all means necessary.
HARRAK: This has indeed hit a nerve in French society. What will happen next?
PERSSON: Well, what will happen next is that today there will be these no-confidence motions that will be analyzed by parliament this afternoon. So as I said, it's unlikely that the government will fall through this. So what will happen, and what we have organized labor are doing is organizing strikes, we want to expand them, we want to radicalize them. And also we will call on the entire population to take out the streets every day and organize twigs every day, until we win because there will only be a winner and a defeated in this fight.
And we will do everything to make sure that it is not us who are defeated because this government has no majority within public opinion. It has no majority amongst working people, and it doesn't even have a majority in parliament, hence him bypassing the vote. So, he has this attack has no democratic legitimacy. So we will fight not only to defend our interests, but also to defend democracy basically.
HARRAK: Tough week ahead in France. Axel Persson, thank you so much for coming on.
PERSSON: Thank you.
HARRAK: Now to the Mideast where the West Bank town of Hawara has once again emerged as a flashpoint in the Israeli-Palestinian conflict. Israeli authority said on Sunday, two civilians were shot and wounded there. The U.S. ambassador to Israel says at least one of those shots was a U.S. citizen.
The wounded American has been identified as a settler named David Stern. Israeli official say he actually managed to return fire and injure his attacker and a suspect was apprehended.
While this latest violence comes weeks after Israeli settlers attacked Palestinians in Hawara following the shooting of two Israeli brothers. U.S. President Joe Biden has directly weighed in on the controversial judicial reforms being proposed by Israeli Prime Minister Benjamin Netanyahu. They spoke by phone on Sunday and the White House says President Biden underscored the importance of checks and balances in democratic societies and told the Prime Minister any fundamental changes should have broad support.
The conversation came a day after hundreds of thousands of Israelis were back on the streets protesting those plant changes to the judiciary, while those massive demonstrations have gone on for weeks now and they show no sign of letting up. Elliott Gotkine reports now from Jerusalem
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ELLIOTT GOTKINE, JOURNALIST (on camera): As surely as night follows day Saturday night these past 11 weeks in Israel has meant mass demonstrations against the government's judicial overhaul. Protesters are concerned it will remove pretty much all checks and balances on the government, allowing it to appoint allies as top judges and removing the Supreme Court's ability to strike down laws except in very narrow circumstances.
Prime Minister Benjamin Netanyahu who leads the most right wing and religiously conservative government in Israel's history, says his overhaul is required to restore the balance between the government and the judiciary. But the protesters don't buy it. They worry it will erode Israel's claim to be a liberal democracy and that will damage the economy and infringe upon their freedoms of expression worship and the right to demonstrate precedent.
Isaac Hertzog attempts to broker a compromise unveiled earlier this week were rejected by the government and though his warnings of civil war seem far-fetched for now, so long as the overhaul continues, its passes through parliament the protests will continue. Elliott Gotkine, CNN, Jerusalem.
(END VIDEOTAPE)
HARRAK: Donald Trump's legal team warns of mayhem in New York if the former president is indicted in a hush money probe. Ahead, how the district attorney has responded to Trump's rhetoric.
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HARRAK: Welcome back to our viewers all around the world.
I'm Laila Harrak and you're watching CNN NEWSROOM.
Manhattan district attorney is pushing back against Donald Trump after he urged supporters to protest against his potential indictment in New York. Alvin Bragg said in an email to staff, that his office won't tolerate attempts to intimidate and that they are working with police to ensure credible threats are investigated.
Mr. Trump on Saturday tried to rile up his base by claiming that he would be arrested on Tuesday over hush money investigation. Well one of his lawyers told CNN that if Trump is indicted, there would be unrest in New York.
(BEGIN VIDEO CLIP)
ALINA HABBA, TRUMP LAWYER: Let's see if they arrest him. But I'll tell you what, if they choose to do so for a misdemeanor, which, frankly, he didn't even do, it is going to cause mayhem, Paula. I mean it's just a very scary time in our country. I do think security should be in place if that is what they choose to
do. I would never want to see anybody get hurt. I know the president would neither. And if this is what we're doing in this country, you better secure the premises because it's dangerous, you know. People are going to get upset.
(END VIDEO CLIP)
HARRAK: Authorities in New York have been preparing for large demonstrations in case Mr. Trump is indicted.
CNN's Gloria Pazmino reports.
(BEGIN VIDEOTAPE)
GLORIA PAZMINO, CNN CORRESPONDENT: Law enforcement sources here in the city have confirmed to us that they have been discussing plans around this potential indictment of former President Donald Trump.
Law enforcement agencies, everyone from the NYPD to the Secret Service to federal agents as well as court officers which are responsible for safety inside the courtroom have all been coordinating in recent days ahead of this potential indictment.
Now Donald Trump, taking to his social media channel to say that he would be arrested on Tuesday and calling on his supporters to protests, that it's creating another layer of logistical challenges for authorities here in New York City. Because should protests happen here in the area, it would complicate the security and the logistics.
We suspect former President Donald Trump to turn himself in, if he is in fact charged with a crime, arrested and indicted, he would have to show up here to Manhattan criminal court here behind me, just as anybody else who is accused of a crime.
He would have to go before a judge. He would be fingerprinted. His mugshot would be taken. And he would go through the criminal justice process like anyone else facing a crime.
[01:34:47]
The one big and obvious difference here, of course, is that we are talking about the former president of the United States. Not only that but also a current candidate for the presidency, adding a whole layer of history to this potential event and also adding to the complications around safety and security that local enforcement has to provide for him.
In response to that social media post that the president made yesterday, District Attorney Alvin Bragg sent an internal memo to his office over the weekend, acknowledging the possible threat. Law enforcement sources here in New York also telling us that they are monitoring social media for any possible threats.
In the memo Alvin Bragg wrote, quote, "We do not tolerate attempts to intimidate our office or threaten the rule of law in New York. Our law enforcement partners will ensure that any specific or credible threats against the office will be fully investigated and that the proper safeguards are in place so all 1,600 of us have a secure work environment."
That last line really underlining the fact that even with the potential indictment of a former U.S. president, this is an office that will still have to do the work that it does every day to ensure that people who have to come through this court can do so safely and that business can carry on as it usually does on any given day.
So local authorities, preparing for the possibility of that indictment. Former President Donald Trump saying that he expects to be arrested on Tuesday. But of course, all of it remains to be seen.
Reporting in New York, Gloria Pazmino, CNN.
(END VIDEOTAPE)
HARRAK: It's now been 20 years since the U.S. and its allies launched one of the largest and most consequential military operations in modern history -- the 2003 invasion of Iraq.
This is how it began. With a barrage of strikes pummeling military targets on March 19th. In the weeks that followed, U.S.-led forces would sweep through the country with the goal of toppling its ruler.
By April 9th, they took the capitol where a large statue of Saddam Hussein came tumbling down. The U.S. declared that his regime was gone but the war would rage on for eight years leaving tens of thousands dead and millions in chaos.
And to this very day, the impact of the war are still being felt in Iraq and the United States.
CNN's Ben Wedeman explains how the conflict has shaped both nations over the past 20 years.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: It began with shock and awe. 20 years ago, the United States and it's allies embarked on a war in Iraq. Within weeks, Saddam Hussein's regime fell.
GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: Major combat operations in Iraq have ended. In the battle of Iraq, the United States and our allies have prevailed.
WEDEMAN: They prevailed in the brief battle of Iraq. But the war in Iraq that followed was long and hard. The American road paved with good intentions soon led to hell.
UNIDENTIFIED MALE: Son of a (EXPLETIVE DELETED). Welcome to (EXPLETIVE DELETED) Iraq.
WEDEMAN: The U.S. never found Iraq's alleged weapons of mass destruction, the original rationale for the war. And blunder after blunder poured fuel on a fire of resentment.
Every U.S. operation, like this one I covered in the summer of 2003 left behind a trail of bitterness. By midweek, U.S. troops had detained nearly 400 men -- none from their most wanted list.
They also managed, however, to arouse a fair amount of resentment.
"The Americans are occupiers," says this man, "they have no manners or ethics. One of them grabbed the Quran and threw it to the ground."
The U.S. cobbled together a political order, based on sectarian divisions, disbanded the Iraqi army, and the once ruling Ba'ath party throwing hundreds of thousands out of a job.
It was mired in the Abu Ghraib Prison scandal where Iraqis were tortured, humiliated and photographed. 11 U.S. soldiers were convicted of crimes.
Less than a year after the invasion, large parts of Iraq were in chaos. Saddam Hussein was captured, tried and executed but the insurgency went on. Abu Musab al-Zarqawi, Jordanian born leader of al- Qaeda in Iraq was killed but the insurgency went on.
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WEDEMAN: Two years after the invasion sectarian tensions between the Shia majority and the once dominant Sunni-Arab minority erupted into civil war and the killing intensified.
The violence only subsided after the U.S. surged more troops into Iraq in 2007.
In August 2010, the last U.S. combat troops left Iraq, leaving behind a brutal, corrupt, deeply-flawed, democratic regime, riven by sectarian tensions.
Which provided fertile ground for the rampage of the Islamic State or ISIS, spilling over from the war in Syria into Iraq. ISIS seized control of the northern city of Mosul and then captured city after city, reaching the outskirts of Baghdad.
It took more than three years of bitter combat and foreign military assistance to defeat the group. That enemy vanquished, old discontent resurfaced.
In 2019, Baghdad was gripped by massive protests against corruption, sectarianism and poor living conditions. But like protest movements across the region, it too was crushed.
As the U.S. invasion and occupation fade into history, neighboring Iran plays an ever greater role in the country's affairs. Old problems, corruption, dysfunctional infrastructure and unemployment remain unresolved.
Yet despite it all, today Baghdad is more peaceful than it has been in years. Ben Wedeman, CNN.
(END VIDEOTAPE)
HARRAK: California is bearing the brunt of more severe weather as its southern cities now face the threat of additional flooding, while snow still falls in the mountains.
Well, the situation could worsen this week with an atmospheric river set to sweep across the western U.S. That is a long narrow band of moisture, saturated air that travels thousands of miles and then suddenly discharges like a fire hose. It's set to hit California late on Monday bringing even heavier rain and snow.
Cities in both California and Arizona have issued level 2 excessive rain risks for the start of the week.
Well, officials in Ecuador have lowered the death toll from Saturday's earthquake from 60 to 13 but the number of injured has risen to more than 460.
In the province of El Oro homes, schools, medical centers and highways were damaged, leaving people struggling to cope with the aftermath.
CNN's Ana Maria Canizares filed this report. Sorrow, concern and multiple buildings and houses damaged is what we found here in El Oro, the most affected province by this Saturday's earthquake.
It was a 6.8 shock that caused severe structural damage to homes, schools, medical centers and even highways in three neighboring provinces -- El Oro, Guayas and (INAUDIBLE).
We are in Machala, the capital of El Oro. Several brick made houses collapsed here and in some cases, people got trapped. Even one of the city's largest hotels had to be evacuated because it showed evidence of damage. The government reports hundreds of injured so the death toll can easily increase.
This two-story house in downtown Machala collapsed. Some survived but three people died.
UNIDENTIFIED MALE: Because the little house that you see there destroyed belongs to my mother-in-law, the lady is 87 years old. She has been there all her life and that is what she's been able to do in all her life. And today, we see it in rubble.
UNIDENTIFIED FEMALE: We don't sleep. We are worried standing guard in the street because we're pretty scared that there's going to be aftershocks.
CANIZARES: In the last hour, President Guillermo Lasso toured all three provinces. He made available emergency funding and deployed (ph) military (INAUDIBLE) and police to reinforce security especially in this province since lately, it has been hit by high crime rates.
Ana Maria Canizares, CNN -- Machala, Ecuador. (END VIDEOTAPE)
HARRAK: Still to come, TikTok security concerns. We'll hear from one U.S. lawmaker who continues to use the app and why he thinks changes need to be made.
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HARRAK: Security concerns about the social media app, TikTok, will be in focus this week during a hearing held by the U.S. House Energy and Commerce Committee. The company's CEO is set to testify at that hearing on Thursday.
He's expected to discuss TikTok's privacy and data security practices along with its relationship to the Chinese Communist Party.
Some in Washington have expressed concerns that the app could be used by the Chinese government to spy on users or gain access to their data.
It all comes as TikTok's impact on global culture is becoming harder to ignore. The app has more than one billion users around the world. And here in the U.S., it's been the most downloaded app for the last two years.
So despite the growing scrutiny on Capitol Hill, some lawmakers have continued to embrace TikTok if cautiously. Among them freshman Congressman Jeff Jackson. His videos documenting his new job have racked up millions of views, like this one explaining some of the fallout from Silicon Valley Bank's collapse.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE:L Earlier tonight, there was an emergency Zoom call with several hundred members of Congress. It was convened by the Treasury Department, and we were given about 15 minutes notice. It was literally on regular, Zoom. I was sent a link, I clicked the link, and most of congress was there. That's not normal. But neither is the situation.
(END VIDEO CLIP)
HARRAK: Democratic Congressman Jeff Jackson joins me now from Charlotte, North Carolina. Congressman I should also add to that description you are often depicted as a TikTok sensation by numerous publications.
You have now more than a million followers, I am told. Your last video went viral in a big way. It got millions and millions of views. Are you surprised by how many eyeballs you managed to attract?
REP. JEFF JACKSON (D-NC): I am completely surprised. I thought if I could do 10 percent that well, that that would be great. As it turns out there is much more of a demand for people who are currently in office communicating directly with the public in a way that is, you know, halfway sensible and in a normal tone of voice than I could've possibly imagined.
HARRAK: How did TikTok end up becoming your app of choice to reach your constituents and a large audience?
JACKSON: Well, it's not exactly my app of choice. I use four or five different apps. I use Facebook, I use Instagram, I use Twitter. It is just how I tried to reach my constituents because my constituents have made clear that they're on those apps. And they would appreciate it if they heard directly from me.
But I have found that TikTok just has more viewers on it, certainly than Facebook or Instagram. It used to be the whole thing was Facebook. And that's no longer the case.
HARRAK: That is no longer the case. Now TikTok, as you know, is under scrutiny. Your fellow lawmakers they consider it now a major national security risk.
[01:49:53]
HARRAK: The Biden administration has put TikTok on notice basically, demanding that its Chinese parent company sell its stake in the app or face in the U.S., a nationwide ban. What is your view on that?
JACKSON: I think that's an appropriate step and probably a necessary step. Keep in mind, that decision comes at the end of a really lengthy negotiation that began last year. And apparently the situation is such that the other options just aren't satisfactory.
And the best-case scenario is not to be clear banning TikTok across the country. The best-case scenario is a change in ownership because, the national security concerns that you referenced, those are real. Those are legitimate. With respect to data privacy, with respect to the algorithm, and how it could be misused in the hands of a clearly adversarial government. Those national security risk are to be taken seriously.
HARRAK: Did you ever have concerns that your data may have been accessed?
JACKSON: Well, I don't have any particular reason to think that my data has. But then again, I keep TikTok on a phone with no other apps on it. It's just the TikTok phone. So, I take this very seriously.
HARRAK: You take this very seriously. I mean, obviously, you're going through great lengths to continue using TikTok so obviously the app is too important to quit. So what happens now if the White House does decide to go through with this nationwide ban? And it ends up no longer being accessible in the United States? What kind of impact would it have?
JACKSON: Well, I think it would be a huge boon for Instagram. Because I think Instagram is pivoting to try and become TikTok as quickly as possible. But look, I don't think it's a foregone conclusion that TikTok is
going to be banned. I think that there's a really good chance that China does what I think is in their interest under the circumstances, which is to divest, which is to sell. That way we get to continue using the app, we're just not doing it under the control, potentially, of the Chinese government.
HARRAK: And Congressman, do you feel conflicted? Because obviously on one hand, you know, here is this app that allows you to reach an extraordinary amount of people at once. And at the same time that very app, video showing app, is now at the center of tensions between the U.S. and China. I mean how do you feel about that?
JACKSON: Well, I think it's a fair question. And I guess, here's how I think about it. As long as this app exists, I'm going to use it for good. So, I've used it to talk about our support for Taiwan and helping to prepare Taiwan for a possible Chinese invasion.
I use it to talk about how we shot down the Chinese spy balloon. So as long as this exists as a way for me to be transparent with my constituents, I'm going to continue to do that. And if TikTok goes away, then it goes away.
HARRAK: Congressman Jeff Jackson, thank you so much for your time.
JACKSON: Thank you.
HARRAK: Still to come, Americans skier, Mikaela Shiffrin extends an already record-breaking season with another win. What is next for Shiffrin after the break.
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HARRAK: American skier Mikaela Shiffrin has notched her 88th World Cup win with a victory at the Giant Slalom in Andorra. Well, that makes for 21 World Cup wins in that event alone in her career.
[01:54:53]
HARRAK: CNN World Sports Patrick Snell breaks down the record breaking winning streak Shiffrin has had this season on the slopes.
(BEGIN VIDEOTAPE)
PATRICK SNELL, CNN WORLD SPORTS: Well, we are here to celebrate the continuing brilliance of America's history-making skier Mikaela Shiffrin in Andorra Sunday, seeing yet more records tumbling for Mikaela, the 28-year-old from Colorado, winning her 14th World Cup race of the season.
This in the season closing finale too, the Giant Slalom. Mikaela stealing the wind by 0.06 seconds and her day was about to get even better. Never mind another victory, this is a special moment that she gets to share a wonderful career moment with her longtime boyfriend, Aleksander Aamodt Kilde, this is wonderful to see. Earlier, you know, this season the amazing Shiffrin passing both
Lindsey Vonn and the legendary (INAUDIBLE) Denmark for the most career alpine skiing world cup victory.
And you won't believe who was first on the scene to interview the global superstar, take a look at this.
ALEKSANDER AAMODT KILDE, MIKAELA SHIFFRIN'S BOYFRIEND: What's your plan on going forward? Are you going back to the U.S.? Are you staying here? Are you taking some time off?
MIKAELA SHIFFRIN, CHAMPION SKIER: Oh my God, this is unbelievable.
Ok, sorry. Focus, just focus. Going back to the U.S., going to get a little beach time. I wish you were coming. But it's not meant to be yet.
KILDE: Oh, really. Ok. Challenge accepted.
SHIFFRIN: Oh yes? Ok? Well, challenge accepted.
KILDE: (INAUDIBLE) victory, and it keeps going. What do you need to improve for keeping where you are? Do you have anything specific you want to improve for next year?
SHIFFRIN: Yes, we could discuss that later in private.
KILDE: Ok, let's do it. Thank you. You're amazing.
I love you.
SHIFFRIN: I love you.
SNELL: The one-on-one interview, we all wanted. But only Aleksander got. Well, forget about writing a chapter in the record books. Shiffrin needs a whole book I'd say to herself. The 21st Giant Slalom winner, women's all-time record, one more than the Swiss great, Vreni Schneider.
88 overall victory, two more now than (INAUDIBLE), three globes this season, just to remind, the overall -- the Slalom and the Giant Slalom, 14 wins as well just three shy of her own record of 17.
And now, the ski season's over. We've officially run out of superlatives to describe her many, many achievements. I guess, I'll send it right back to you.
(END VIDEOTAPE)
HARRAK: And that wraps up this hour of CNN NEWSROOM. I'm Laila Harrak.
Rosemary Church picks up our coverage after a quick break. Do stay with us.
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