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Failed Silicon Valley Bank Acquired by First Citizens Bank; Nebraska Lawmaker's Fight Over Anti-Trans Bill; Expected Testimony from the Man Suing Gwyneth Paltrow; Alleged Domestic Violence Assault Led to the Arrest of Jonathan Majors; Interview with Sen. Machaela Cavanaugh (D-NE); Pennsylvania Candy Factory Fire and Explosion Leave Seven People Dead; Elian Gonzalez to become lawmaker in Cuba. Aired 10:30-11a ET

Aired March 27, 2023 - 10:30   ET



JESSICA DEAN, CNN CONGRESSIONAL CORRESPONDENT: Right. Regulators shut down SVB on March, 10th after clients withdrew $42 billion in one day, it was the second largest bank failure in U.S history. CNN Business Reporter Matt Egan is joining us now. And Matt, that collapse sent tremors through the stock market. How are the markets reacting this morning on the verge -- after learning this news?

MATT EGAN, CNN BUSINESS AND ECONOMY REPORTER: Well, Jessica and Jim, there's definitely a cyber leaf on wall street that the FDIC was able to find a buyer for Silicon Valley Bank. The Dow opening up about 200 points higher today, almost one percent. And, you know, I think there is some hope here that this deal is going to provide some closure for this chapter. And also, instill some confidence in the banking sector after the worst bank collapse since 2008.

So, let me run you through some of the details here. The deal calls for $56 billion in deposits going from Silicon Valley Bank to First Citizens, $72 billion in loans, I would note at a significant discount also going to First Citizens. Now, as you mentioned, there's 17 bank branches from Silicon Valley Bank. Those are in California and Massachusetts, they are opening now as First Citizens. FDIC is sharing in potential losses and gains on some of the loans. And there's a better $20 billion estimated lost to the FDIC insurance fund from this bank collapse.

Now, $20 billion is nothing to sneeze at but this could have been a lot worse given the size of Silicon Valley Bank and the fears in the industry. Now, if you look at how regional bank stocks are opening this morning, they're up really across the board. First Citizens, that's the buyer in this deal, up 45 percent today alone. First Republic up 13 percent, that is the big regional bank that has been in turmoil.

And so, this is a sign that perhaps some of these fears about the industry are starting to ease. And this is a big deal because, you know, the more nervous bankers are the less willing they will be to give all of us credit in terms of mortgages and credit cards and car loans. And so, the faster they can end this crisis, the better. DEAN: Yes, confidence is a key factor in all of this. Matt Egan, thanks so much.

As legislation aimed at stopping, gender affirming care is being debated all across the country. One Nebraska state senator is using her voice to stop a measure from moving forward in her state. We're going to hear from Machaela Cavanaugh on her weekslong filibuster, as some lawmakers look to change the rules to silence her.



DEAN: Court has resumed in the civil trial involving Gwyneth Paltrow in a 2016 ski collision. The man accusing the actress of crashing into him is expected to take the stand.

JIM SCIUTTO, CNN NEWS ANCHOR: Terry Sanderson claims the accident left him with lasting injuries, including brain damage. He's seeking more than $300,000 in damages while Patrow -- Paltrow is countersuing him for just $1. CNN's Chloe Melas joins us now. I wonder where the trial stands and what we expect to see today.

CHLOE MELAS, CNN ENTERTAINMENT REPORTER: Well, Jim, if it's any indication, as of what happened on Friday, where things went a bit off the rails, according to social media if you want to take their word for it. It was some kind of wacky, you know, line of questioning from Terry Sanderson's attorney that turned into some viral moments, talking about everything from Gwyneth Paltrow's fashion, to her height, their shoes, and some would say it was bizarre, but yes, we should be hearing from Terry Sanderson himself.

He has been pursuing these claims civilly against Gwyneth Paltrow for the last seven years. So, it'll be interesting to see who the jury believes, because there is no video from the alleged collision that took place seven years ago. Terry Sanderson says, that Gwyneth Paltrow barreled into him causing brain injuries. Gwyneth Paltrow says, no, he skied into me. And we heard her testimony on Friday. We will be hearing most likely from Gwyneth Paltrow's two children, potentially her husband, and then everything should rest later this week, and then we'll have the jury deliberating.

It'll be interesting to see at how long it takes them to deliberate and whose side they're going to fall on, you know. Because again, like I said, it really comes down to their testimonies and that of their respective witnesses.

SCIUTTO: Something to watch for sure. Chloe Melas, thanks so much.

MELAS: Thanks.

SCIUTTO: New this morning, the actor, Jonathan Majors, has been released without bail in New York. This, after he was arrested for an alleged assault during a domestic dispute.

DEAN: Majors is one of the brightest stars in Hollywood after starring in one some of the biggest movies of the year, including "Creed III" and "Ant Man and The Wasp: Quantumania". CNN's Lisa France, has details on this. And Lisa, representatives for Majors say he's looking forward to clearing his name. What's the latest in all of this?

LISA FRANCE, CNN SENIOR ENTERTAINMENT REPORTER: Yes, he is absolutely looking forward to clearing his name. We have the statement from his attorney that was provided to us which says that, you know, Jonathan Majors is completely innocent and is probably the victim of an altercation with a woman he knows. We're quickly gathering and presenting evidence to the district attorney with the expectation that all charges will be dropped imminently.

So, according to his reps, you know, this is something that's about to be cleared up. And it's been really shocking because he has been on the precipice of even breaking bigger than he has been.


He's been such a beloved actor since "Lovecraft Country", "Creed III", and he's a part of the Marvel universe, you know, to set to star in an "Avengers" movie coming up in the next couple of years. So, people have had a lot to say about this on social media, their feelings and thoughts about this arrest happening at this time.

DEAN: All right. Lisa France, thanks so much for that reporting. We appreciate it and we'll be right back.


SCIUTTO: In recent days, several states have made moves to restrict transgender rights. Idaho's Republican governor has signed a bill restricting transgender students in the state from using public school bathrooms that do not align with their gender as assigned at birth.


And in Georgia, the governor there, also Republican, Brian Kemp, signed legislation banning licensed medical professionals from providing minors with hormone therapy or surgery related to gender transition.

DEAN: Kentucky Governor Andy Beshear vetoed a similar bill passed by the state's Republican-led legislature, he's a Democrat, but lawmakers could still override him like they did last year after Beshear vetoed an anti-trans sports ban in that state. And in Florida, four families have filed a lawsuit over the state's ban on gender affirming care. And in Nebraska, one Democratic state senator has been filibustering for three weeks to block Republican legislation that would ban some medical treatments for transgender individuals under the age of 19. This was her message to republican colleagues at the beginning of the month. Listen.


SEN. MACHAELA CAVANAUGH (D-NE): If this legislature collectively decides that legislating hate against children is our priority, then I am going to make it painful. Painful for everyone. Because if you want to inflict pain upon our children, I am going to inflict pain upon this body.


DEAN: And joining me now is that legislature you just saw, State Senator Michaela Cavanaugh. Senator, it's great to have you. Thanks for making time today. We just heard you in that clip there.

CAVANAUGH: Thanks for having me.

DEAN: You've spent now three weeks filibustering. Nebraska's the only unicameral state in the country, so you've effectively been able to grind to a halt. And you've said in other interviews, you're frustrated, everyone else's frustrated. But now your colleagues want to consider some rule changes before the debate begins tomorrow. Is there anything that can move you on this? Are there any potential changes that would be able to deter you on this?

CAVANAUGH: Well first of all, starting tomorrow's week five of the filibuster, but, yes, they are trying to enable some new rule changes to restrict my ability to filibuster. I know the rules pretty well. And I know that I can continue to filibuster even if they change the rules. So, that's not going to deter me. The only thing that would deter me is to stop legislating hate in Nebraska and to put a permanent hold on these pieces of legislation that target trans youth.

DEAN: And you've spoken for hours upon hours. At one point you had strep throat. At another point, you said -- and I'm quoting you here that, "You'll burn this session to the ground over this legislation." Why are you doing this? Why does it mean so much to you?

CAVANAUGH: I'm doing this because first of all, I think it's the right thing to do, but I think it's important as legislators that we stand up for our most vulnerable populations. And there is a movement across this country to target trans youth and their very existence. And now is the time for everyone to stand up and say that this isn't right. That we, as legislators in Nebraska and across the country, we should not be legislating hate. We should be standing firm and supporting and giving hope to those children, not legislating against their very existence.

DEAN: And Nebraska hasn't been able -- the legislature has not been able to pass a single bill this year. What do you say to people who might say to you, what about the other priorities for the state? What about other legislation? Do, you know, is at some point, is it worth turning your attention to anything else, or do you think this is it? This is the only thing you guys should be focused on right now?

CAVANAUGH: I absolutely do not think this is the only thing we should be focused on. I don't think we should be focused on this at all. What I'm asking my colleagues to do is to say what they think we should be focused on. And so far, what they're telling me is that they think that this is more important than anything else in the legislature by continuing to move it forward, by continuing to make it happen. That's what they're focusing on.

I think that we should be focusing on economic recovery in the state and doing the most-good that we possibly can for those most impacted by what we're having -- seeing around the country economically. We have record high prices for everything. And we have an opportunity and the Nebraska legislature to do something about that. And my colleagues are choosing not to buy focusing on legislating hate.

DEAN: And we really walked through some of the other legislation that's gone through and other states all around the country. This is clearly a priority for GOP lawmakers. Why do you think that is?

CAVANAUGH: Well, I pushed back on that notion, because I don't think that it is a priority for GOP lawmakers. I think it is a priority for a loud minority. I think that there are so many individuals, my colleagues in the legislature who do not support this type of legislation, but we've seen a movement across this country attacking and targeting very specifically trans populations and even more specifically trans youth under the guise of protecting children.


I don't believe that this is a GOP issue. I believe that this is an issue of an outspoken minority that is attacking the trans population. And I think that both Republicans and Democrats have a responsibility to stand up and push back against this.

DEAN: Yes, a priority for a loud minority. Machaela Cavanaugh, thanks so much. We'll will be watching to see what comes --

CAVANAUGH: Thank you.

DEAN: -- in the days and weeks ahead. We appreciate you making time. Thanks.

SCIUTTO: Such an important conversation.

Well rescue crews have found two more bodies in the rubble after a candy factory exploded in Eastern Pennsylvania, that brings the death toll in that blast to seven. Authorities say, they have accounted for everyone who was listed as missing. The blast leveled the RM Palmer Candy Factory in West Redding, Pennsylvania. Goodness, look at that video there.



SCIUTTO: Structural engineers will determine whether three surrounding buildings can now be saved. Candy company was a fixture in the community for more than 60 years.

Well, he was the center of an international custody battle. And now Elian Gonzalez is poised to become part of the very government his mother tried to escape from. His view on U.S.-Cuban relations coming up. (COMMERCIAL BREAK)


DEAN: He was a six-year-old boy caught in an international tug of war. A photo showing a frightened Elian Gonzalez hiding in a closet is federal agents stormed his uncle's Miami home made headlines around the world. It's an indelible image that many of us can never forget. Today, Gonzalez, who is now 29, is expected to become a member of Cuba's national assembly.

SCIUTTO: A remarkable story. Remarkable image. No question. Our man in Havana, Patrick Oppmann joins us now live from the Cuban capital. Patrick, of course this began with Elian Gonzalez rescued at sea later that taking into custody there and then returning to Cuba. Just remind folks who may not remember how this all played out. Where we're landing now today?

PATRICK OPPMANN, CNN HAVANA-BASED CORRESPONDENT: It really was an amazing story. One that could repeat tomorrow as we see, of course, a huge surge of Cubans continue to leave the island, many by boats. But that was a little Elian Gonzalez, found on Thanksgiving Day. His mother died trying to take him out of Cuba, and he was miraculously rescued at sea after their shipwreck. And that set off this amazing sequence of events where his father who still lives in Cuba wanted him brought home, felt that it was, of course, his right. And Miami relatives truly under pressure by anti-Castro exile leaders in Miami who felt that his mother's dying wish was to get into the U.S. tried to keep him in Florida.

Of course, he was brought back here. And you don't see him regularly here. He's tried to have a normal life in this small town where he lives. But yesterday, I did have the rare opportunity to catch up with him and hear about this latest news that he is going to be joining Cuba's national assembly. We expect that announcement to come as early as today. And certainly, it will mark a change for Elian as he takes this (ph) new public role.


OPPMANN (voiceover): Elian Gonzalez walks with his wife and their daughter in his hometown of Cardenas, Cuba. Preparing to step back in the public view. Gonzalez is here to vote for himself and the other candidates for Cuba's national assembly. Candidates run on opposed, so he's all but guaranteed to win. It will be Gonzalez's first official role since the legal battle that brought him back to Cuba roughly 23 years ago. Early on in our interview, Gonzalez makes it clear, the U.S. is still on his mind.

I'm someone the American people know and I can help bring the American and Cuban people together. And not just the people, he says. That our governments reach an understanding and remove all the barriers between us. Our country doesn't have any sanctions on the U.S.

Now that he's a father himself of a two-year-old girl, Elian says, he better understands the ordeal that his own father went through during the bitter custody fight with his Miami relatives, as well as the pain of all Cuban families separated by political divisions.

It helped me to understand my father, he says. It's made me more sensitive. It's helped me understand how all the Cubans feel were separated from their families and fathers who aren't able to give all the attention and things their children want.

By joining the 470-member national assembly, Gonzalez could become a high profile spokesman for the government, something his Miami relatives said they were afraid would happen if he was returned to the island.

OPPMANN (on camera): Despite being one of the most famous people on this island, Elian Gonzalez says, he's led a pretty low-key life since returning to Cuba. Now that he's going to become a member of that Cuba's national assembly though, he'll be returning into the public spotlight. And no doubt using his celebrity to defend the revolution that brought him home.

OPPMANN (voiceover): Even as he is an unabashed supporter of Castro's revolution, Gonzalez also strikes a conciliatory tone rarely heard on either side of the Florida Straits.

Cuban exiles, what we want one day is that they are no longer exiled. That they come home. That everyone understands that all the youth that has left that when they're willing to work for Cuba, the well-being of Cubans, beyond the political party and ideologies, he says. That our doors are open to build a better country, which is what we need.

OPPMANN (voiceover): It is a hopeful sentiment of someone uniquely connected to both Cuba and the U.S. And Gonzalez may prove to be instrumental in uniting Cubans and rebuilding the island even if he has a long road ahead of him.


OPPMANN (on camera): And you heard Elian Gonzalez say he would like to see Cuban exiles return.