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Powerful Storm To Spread From Florida To East Coast; Rudy Giuliani Ordered To Pay Nearly $150 Million In Damages; Mark Meadows Appeals Ruling To Move Georgia Election Case To Federal Court; Sorrow And Anger In Israel After Military Kills 3 Hostages; Autopsy Report Shows Matthew Perry Died Of "Acute Effects Of Ketamine"; Unprecedented Migrant Surge Overwhelms Arizona-Mexico Border; Federal Regulators Warn A.I. Poses Risk To U.S. Financial System. Aired 6-7a ET

Aired December 16, 2023 - 06:00   ET

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

(COMMERCIAL BREAK)

[06:00:35]

AMARA WALKER, CNN ANCHOR: Good morning everyone and welcome to CNN This Morning. I'm Admiral Walker.

VICTOR BLACKWELL, CNN HOST: I'm Victor Blackwell. Good to be with you. Developing this morning a massive storm churning along the East Coast just as so many people are starting their holiday travel and this storm is getting stronger.

WALKER: Rudy Giuliani is ordered to pay $148 million to two former election workers he defamed after the 2020 election but these women may never see a dime of the money awarded to them.

BLACKWELL: New this morning, the Israeli military just announced it tactical pause in fighting in one Gaza neighborhood so people there can get the desperately needed food and water. But this won't last long.

WALKER: And new information about the death of Matthew Perry that powerful drug found in a system when mean he died.

BLACKWELL: We're starting with the severe weather that's threatening millions of people this powerful storm system bearing down on Florida right now really up the entire east coast.

WALKER: The possibility of flooding and severe winds has prompted Florida's governor to activate the National Guard. Tens of thousands of homes and businesses could lose power. Let's get right to CNN meteorologist Allison Chinchar. What do we know Allison?

ALLISON CHINCHAR, CNN METEOROLOGIST: Right. So you've actually got two separate systems. Right now you've got this low pressure system sitting over the Midwest, that's got that cold front associated with it bringing rain to the southeast, but also this low pressure system down here across the Gulf of Mexico.

This is what's going to slide up and down the East Coast over the next few days. Right now most of the rain is really offshore. We're just starting to see some of those light rain bands begin to push in across Florida. By this afternoon that changes entirely. Here you'll see that system be finally becomes onshore. It does have the potential also to bring some severe thunderstorms with it as well.

By Sunday, we're looking at the main concern to be over the Carolinas then by Sunday night really more over the Delmarva region. And then by early Monday morning, if you've got to try to get a head start maybe on some of those travel plans or you still have to work next week, you are likely going to be dealing with a very soggy commute first thing Monday morning across the Northeast.

So here's a look at the breakdown. Again, by the time we get to the afternoon. A lot of those really heavy bands really begin to set up shape. You're looking at, on and on throughout most of the day today and even through the evening hours tonight.

By Sunday morning, again, mainly focused here across Georgia and the Carolinas. Then once we get into Sunday afternoon in the evening, now you're really focusing across the Mid Atlantic for the bulk of that really heavy rain, then it's going to continue to slide up into the Northeast.

One of the other concerns in addition to rainfall is the potential for flooding because of how much is expected to come down. You're talking widespread two to four inches, not just along Florida, but pretty much up and down the East Coast and winds guys also could be bringing down some trees and power lines in the next few days.

WALKER: All right, Allison Chinchar. Thank you very much.

Rudy Giuliani the man once known as America's mayor, a must pay nearly $115 million to two Georgia election workers.

BLACKWELL: After more than 10 hours of deliberations a Washington jury ordered Giuliani to pay more than $148 million in damages for defaming the two women after Donald Trump's 2020 presidential defeat. CNN's Katelyn Polantz reports.

(BEGIN VIDEOTAPE)

KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE REPORTER: $148 million. That's the amount of federal jury in this courthouse on Friday decided Rudy Giuliani should have to pay. So the former mayor of New York, the former lawyer to Donald Trump in the 2020 election, he was on trial, because he defamed two women repeatedly after the 2020 election.

Those women are Shaye Moss and Ruby Freeman, a mother and daughter. They were absentee ballot counters in the state of Georgia after the election counting those ballots that were mailed in for the vote. And Giuliani and others accused them of switching votes or ceiling votes. Those were absolute lies that has been determined by this court.

And so the trial this entire week in Washington D.C. was about how much in damages Rudy Giuliani should be facing because of the repeated lies that he made. The juries ultimate conclusion was a very astounding number in a lot of ways, that is quite a significant number $148 million for any defamation case against an individual he's not accompany.

[06:05:08]

And it is a sizable amount for the former mayor of New York. It's not about the money, though. Here is what Freeman and Moss had to say after court after that verdict was read.

SHAYE MOSS, FORMER GEORGIA ELECTION WORKER: The flame that Giuliani lit with those lines and pass to so many others to keep that flame blazing, changed every aspect of our lives, our homes, our family, our work, our sense of safety, our mental health.

RUBY FREEMAN, FORMER GEORGIA ELECTION WORKER: I want people to understand this. Money will never solve all of my problems. I can never move back into the house that I call home. I always have to be careful about where I go, and who I choose to share my name with.

POLANTZ: Within that $148 million damages finding by the jury, there was $75 million of it that the jury said was specifically owed to these women to punish Giuliani and deter him and others from continuing to do what he is doing.

But Giuliani after court he essentially said he is ready to keep fighting he wants to appeal. Here's what he had to say outside the courthouse.

RUDY GIULIANI, FORMER TRUMP ATTORNEY: Certainly will appeal. The absurdity of the number merely underscores the absurdity of the entire proceeding.

UNIDENTIFIED FEMALE: Any regrets about some of the comments that the woman received.

GIULIANI: Well, of course, the comments they received I had nothing to do with. Those comments are abominable. They're deplorable. No defense, though, but I receive comments like that every day.

POLANTZ: It doesn't appear he has a lot of legal options to really escape a judgment like this, he will be able to appeal, but he may have to start putting up money quite quickly. And their lawyers Ruby Freeman and Shaye Moss's lawyers are going to try and claim money from Giuliani very fast, they're going to try and collect.

But Giuliani has said repeatedly that he is broke. He has nothing to pay. He's trying to sell an apartment he owns in New York City for $6.1 million. It hasn't been sold since it's been listed for a couple months. And he has no other money to be paying lawyers or do other things.

So there is still a question of exactly how much money these two women will be seeing out of Rudy Giuliani, someone who was quite powerful after the 2020 election and for many years in this country, but they say that it never was about just money alone and what they could be rewarded. It was about sending a message that people with a platform like his

should know better and should not do these sorts of things to harass workers of elections and people who would be participating in elections. Katelyn Polantz, CNN, Washington.

(END VIDEOTAPE)

BLACKWELL: Katelyn, thank you. Let's bring in now CNN legal analyst Joey Jackson. Joey, good morning to you. Let me start here. And I want to look forward here. Giuliani suggest the file on appeal. How successful are appealed in cases like this, maybe with awards that have this size? What should we look ahead to?

JOEY JACKSON, CNN LEGAL ANALYST: Yes, Victor, good morning to you. And so yes, there could certainly be a reduction in the award depending upon the dynamic of the filing. For example, is the award proportionate to others that are similarly situated? Does it affect the measure of justice? Does it is -- it proportional to the egregious tense of the conduct, etcetera, that'll be evaluated.

But Notwithstanding that, and even if the award is reduced, I would expect that it would still be significant. So let's say it's reduced to 75 million, let's say it's reduced to 50 million, let's say it's reduced to 80 million. The fact is that it will still be a multimillion dollar verdict, as we look there at the specific numbers for the defamation for the emotional distress caused, and of course for the punitive damages, which are designed to punish.

And so at the end of the day, while there may be an appeal, I just don't know that it really reduces it in the figure that even makes it manageable for him. And at the end of the day, also, that means that he will be held accountable significantly for the conduct and misconduct that was engaged in here.

BLACKWELL: Reportedly, a bankruptcy filing is in his future because Giuliani doesn't have $148 million. He may not have $8 million, but he's showing up in these cars. He flies private on occasion. There's some money somewhere we don't know who's paying for that. How do Shaye Moss and Ruby Freeman get anything from Rudy Giuliani?

JACKSON: Yes, I certainly think they will get more than anything. They will get something substantial from him. You know, we have a patchwork of laws and yes people are allowed to file bankruptcy, people are allowed to try to hide and protect their assets.

[06:10:05]

But at the end of the day, those aggrieved are allowed to look for those assets to attach those assets and ultimately to be compensated for purposes that are lawful. And so you know, again, while they may not get a significant portion, a vast portion of what they were awarded, I would expect that the laws will be used in a just way to determine where his bank accounts are, where his property is, what other holdings he has, and to have a proportion of that money going to Ms. Moss and Ms. Friedman, in the very near future. BLACKWELL: Giuliani continued these lies throughout the trial. And there is the possibility that Freeman and Moss could sue him again, is there any value in that?

JACKSON: So I don't know that there's a value in suing again, and I largely think that the jury, you know, considered what this conduct was all about the truth matters and lying matters. And I think that was resoundingly stated.

You know, when you have someone on the steps of the courthouse as we look at Giuliani there, and he indicates he has no regrets prior to the verdict, Victor, that he has no regrets. What he said was true, what the judge rebuking him for that him sitting in a courtroom, you know, apparently disengaged, not interested, not testifying to give an apology or anything else that largely I think resonated with the jury.

What are you doing? Why are you not holding yourself accountable? Why are you not accepting any type of responsibility? And why are you not apologizing? And so, I don't know what it has value of suing again.

I think the value was in what happened in this particular case. And what the jury spoke loudly and clearly as it related to punishing him for telling lies that affected people's lives and a just significant and unfortunate way.

BLACKWELL: Giuliani says that he was not able to offer a defense and also said that he didn't testify after saying that he would because quote, if he made a mistake, close quote, that he'd be held in contempt to potentially put in jail. Fact check that for us, and maybe more importantly, BS check that for us.

JACKSON: So yes, it is a BS check in the following way. In this system of justice that we have a defendant has every opportunity to due process, due process means notice and an opportunity to be heard. In the event that you wanted to take the witness stand, you had every right to take the witness stand and every right to look the actual people who you aggrieved in the eye and say I'm sorry. I mean, I'm imperfect. I didn't mean for it to go this way, et cetera, et cetera. To the extent that you didn't do that, sir, that is on you. That is not as on them. You're not the victim here.

And so ultimately, at the end of the day, if you chose not to testify if you chose to do take the measure of defense that you did, the jury, obviously, you know, didn't look kindly upon that, and as a result of that spoke with their verdict that you were unacceptable, and your statements.

BLACKWELL: Joey Jackson, thank you, sir.

Former Trump's chief of staff Mark Meadows took another shot at moving his Georgia election subversion case to federal court. But the question continues, will the appeals court allow it.

WALKER: CNN's Zachary Cohen explains why a move to federal court could get Meadows out of legal trouble.

(BEGIN VIDEOTAPE)

ZACHARY COHEN, CNN NATIONAL SECURITY REPORTER: The lawyer for former Trump Chief of Staff Mark Meadows was grilled by three judges on a federal appeals panel on Friday, as he was trying to argue that Meadows's charges in the Georgia election subversion case should be moved to federal court because he was serving as White House Chief of Staff at the time those alleged actions happened.

Now the judges were skeptical of that argument. They said just because he was chief of staff doesn't mean that what he did falls within the confines of that job title. They pushed him several times to explain his argument in depth, which meant his attorney failed to do. Take a listen to one exchange that really stuck out from Friday's hearing.

GEORGE TERWILLIGER, ATTORNEY FOR MARK MEADOWS: What the prosecution here is for by the record in this case and by the overt acts that are listed in the indictment are acts taken in the West Wing of the White House by the highest appointed White House official.

JUDGE ROBIN ROSENBAUM, U.S. COURT OF APPEALS FOR 11TH DISTRICT: According to him, it seems like everything was within his official duties, and that just cannot be right.

COHEN: So no decision was handed down by the three judges on Friday that could come at any point in the near future. But it was clear that the judges did not buy what Mark Meadows's lawyer selling completely on Friday. We're going to have to wait and to see what their ultimate decision is. But Mark Meadows could have taken a hit in his bid to move his case to federal court. Victor, Amara.

(END VIDEOTAPE)

BLACKWELL: Zachary, thank you. Still to come, an unbearable tragedy. Israeli troops shot and kill three Israeli hostages in Gaza after misidentifying them as a threat there is now a full investigation.

[06:15:06]

WALKER: Plus, we are finally seeing the autopsy for late Friends star Matthew Perry. We're going to look at what the medical examiner says was in his system when he died and the role it played in his death.

Plus, as the federal government grapples with an influx of migrants on the southern border smugglers are complicating the crisis. We'll explain.

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WALKER: In Northern Gaza, the Hamas controlled health ministry says at least 14 people are dead and a reported airstrike on two houses. The IDF says Hamas fighters have been killed and apprehended during raids at schools in the region.

Also outrage and heartbreak spilling out into the streets of Tel Aviv after Israel Defense Forces accidentally killed three Israeli hostages in Gaza. [06:20:04]

Israel's defense minister called the incident painful but vowed to continue fighting while urging Israelis to remain resilient. Protesters demanded that the Israeli government prioritize a safe return of their loved ones.

BLACKWELL: In Rafah, the IDF says that there will be a tactical pause in one neighborhood to allow civilians to replenish the basic items like food and water. UNICEF spokesperson says that for children, Gaza is now worse than a graveyard because of the deteriorating conditions.

CNN's Melissa Bell is in Paris. Melissa, we're hearing from the relative of another hostage who was at those protests. What can you tell us?

MELISSA BELL, CNN CORRESPONDENT: Well, this has of course ignited a great deal of grief and outrage across Israel the killing of these three hostages. What we understand from the IDF is that it was a search and check operation going on in northern Gaza, during which the men all of them are hostages taken on October 7 from kibbutz in southern Israel have misidentified as a threat.

The White House has expressed its heartbreak, but John Kirby has said that it also doesn't have full visibility on exactly how the tragedy could have unfolded. It is also of course, as you'd expect, Victor, Amara, reignited the fears and anger of so many of the relatives of those hostages still being held inside, who desperately want their loved ones back.

(BEGIN VIDEO CLIP)

ZOHAR AVIGDORI, RELATIVE OF HOSTAGE TAL SHOHAM: Reaction first of all, was grief. These are families that I know personally, and people that have been waiting so hopefully, for their loved ones to return. And to me, it struck me in the heart showing me that there's got to be a deal right now to bring them back. And that we have to do more things to help these people get out of this prison.

(END VIDEO CLIP)

BELL: It comes even as the IDF announces a tactic a tactical pause in southern Gaza in the Rafah district that you mentioned a moment ago, that will allow bid for four hours people to get some much needed food and water.

But it comes even as a UNICEF spokesman who's been spending a week inside Gaza has spoken of something that is worse than a graveyard for children situation that he says he's never seen anywhere else neither the despair nor the devastation with Children Now in danger, from the skies from disease on the ground, and from hunger and thirst.

Meanwhile, the bombing of course continues. You mentioned those 14 Palestinians, mainly women and children that were killed in the Jabalya camp in an airstrike there. Also, hundreds of mourners turning up to mourn an Al Jazeera cameraman Samer Abu Daqqa, who was killed in an Israeli airstrike becoming the 66 journalist, according to International Federal Federation of Journalists who have died during the conflict, the vast majority of them Palestinian. Amara and Victor.

WALKER: All right, Melissa Bell, thank you very much. With me now with CNN military analyst and retired Air Force Colonel Cedric Leighton. First off, Colonel, I just wanted to get your reaction to the DIF of saying that it accidentally shot and killed three Israeli hostages after Miss identifying them as a threat. Is this what happens in the fog of war?

COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Unfortunately, Amara, it can be. Yes, this is one of those situations where when you are in close quarters, and you're going around corners, and in a very dark area, or even in an area where you're not expecting certain things to happen, this can occur.

And you know, I think that in a situation like this, you often have troops who are afraid, because they the most experience that they've had is been with hostile forces. And when something unusual happens, like hostages coming toward you ones that you know, are seeking freedom, then it's sometimes hard just switch your mindset to figure out what these people actually are.

So this is definitely something that can happen in the fog of war. It's extremely unfortunate. And that's why special operations forces train very, very hard to try to avoid situations like this. But you know, sometimes this these tragedies do happen. And fortunately, they're more common than we realize.

WALKER: Let's listen to what John Kirby, another White House official told CNN about just the difficulty of separating the combatants from the innocents. Listen.

(BEGIN VIDEO CLIP)

JOHN KIRBY, NATIONAL SECURITY COUNCIL COORIDATOR FOR STRATEGIC COMMUNICATIONS: Hamas is probably holding them in various groups, not altogether. Certainly putting them in harm's way willingly putting them in harm's way and potentially in crossfire again, without speaking to the specifics of this event, Hamas absolutely wants to hide behind innocent humans, including hostages.

So it's as a reminder, it underscores the very difficult challenge that the Israeli Defense Forces have it before them as they go after these leaders of Hamas.

[06:25:07]

WALKER: They are telling Israeli soldiers to be more cautious to exercise additional caution when they encounter people in civilian clothes. What kind of steps could realistically be taken to avoid these kinds of things from happening?

LEIGHTON: Yes, it really depends on the tactical situation of the soldiers. So the IDF soldiers in this case find themselves in, Amara. One of the things that could happen is to try to challenge somebody, you know, in this case, speak Hebrew to them, see how they answer see if they answer with an accent or with, you know, with normal Israeli speech. That's one way of doing it.

Of course, it's always difficult, especially if these people are coming toward you. And let's say it's dark, or there are some other kind of obstruction in the way. And also what if you're caught in a crossfire as Admiral Kirby mentioned.

These are kinds of things that make it really difficult to discern it. But on the one hand, you know that there's this difficulty of the other, it's very important for the forces to make sure that they can try to discern friend from foe.

WALKER: You know, we've learned at CNN, through a U.S. official that Israel has begun flooding some of these Hamas tunnels with seawater. They're testing out this method, they say, obviously, it's very risky and difficult. What are your thoughts about this? And is this a viable strategy?

LEIGHTON: Well, it's been used before. Have used it and the Egyptians have used it as well, in Gaza. This strategy can work it to some degree to get to Hamas fighters out of the tunnels. The problem that you run into, though, is the hostages.

The Israelis don't seem to know exactly where all of the hostages are. And if that's the case, they do risk of flooding out the hostages, and Hamas would be probably less likely just send the hostages out of harm's way as opposed to themselves.

So it's a risky strategy and it could also serve to collapse buildings above this, you know, the walls. And if that happens, you know, from an engineering standpoint, you're even more destruction in a place that has seen on pillow destruction in modern warfare.

WALKER: Of course, and it could raise the concern amongst family members, loved ones have more hostages being killed as well. Colonel Cedric Leighton, thank you so much for your time.

BLACKWELL: Up next. The autopsy is out for the late actor Matthew Perry what we're learning about what contributed to his death.

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[06:30:00]

BLACKWELL: This morning, we are learning what led to the death of "Friends" actor, Matthew Perry.

WALKER: The 54-year-old was found face down in a pool behind his Malibu home in October. CNN's Elizabeth Wagmeister has more.

(BEGIN VIDEOTAPE)

ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT (on camera): Seven weeks after Matthew Perry was found dead at his Pacific Palisades home, an autopsy report released Friday reveals that the "Friends" star died of acute effects of ketamine.

According to the Los Angeles medical examiner's office, Perry's blood tested positive for the drug, and says that the actor was reported to be receiving ketamine infusion therapy for depression and anxiety. Perry's last known treatment was a week and a half before his death, but that is beyond the time it would still be in his system, according to the report.

His unresponsive body was found by his live-in assistant who, quote, "jumped into the pool, moved the decedent into a sitting position on the steps and called 9-1-1. Now, the autopsy concluded that drowning was a contributing factor in Perry's death due to the likely of submersion into the pool as he lapsed into unconsciousness.

This is an especially tragic ending for the popular actor who was very open about his decades-long struggle with substance abuse. He published a memoir a year ago where he revealed that he attended 6,000 alcoholic anonymous meetings and entered rehab 15 times. Perry also spoke about the loneliness that he endured during his abuse and recovery process and especially his desire to help others going through similar struggles. Perry died back in October at the age of 54. Back to you.

(END VIDEOTAPE)

WALKER: All right, Elizabeth, thank you. Joining us now is doctor --

(CLEARS THROAT)

Excuse me, Jayne Morgan, a cardiologist, a former executive director of the COVID task force at Piedmont Healthcare in Atlanta. Dr. Morgan, always good to see you. What are your thoughts on this autopsy report?

Because from what I understand, Matthew Perry, as reports states, he had been receiving ketamine infusion therapy, but usually that kind of cleans out of the system, and apparently, he had had -- last had a therapy a week and a half before his death. But ketamine was found in his system?

JAYNE MORGAN, CARDIOLOGIST: That's true, Amara, and thanks for having me this morning. You know what's interesting to me certainly as a cardiologist looking at this report is that it also states not only drowning, but coronary artery disease was contributing to this.

And we know that coronary artery disease especially in older adults is a relative contraindication to this medication. In fact, the American Heart Association lists ketamine along with propofol as compounds that need to be thought of in extreme caution because they can exacerbate any medical conditions, any cardiac conditions that you have.

It also should be used in caution, but generally, when it is being used in conjunction with people with mental health disorders, that levels are low enough such that it is not a concern, what we call the subanesthetic levels.

[06:35:00] But his autopsy report seemed to show that his levels were in line

with general anesthesia, so well above the subanesthetic levels that are recommended for cardiac safety.

BLACKWELL: So according to the report, it was the acute effects of ketamine and drowning. What are those potential acute effects? I mean, does this happen immediately after taking them and what could they be?

MORGAN: So the acute effects really are respiratory depression. And this respiratory depression can put a strain on the heart, increase the demand for oxygen of the heart. And therefore, if you have underlying cardiac disease as Matthew Perry seems to have in this autopsy, it can further exacerbate that entire episode.

But it's really the acute respiratory depression that is really driving the entire effect. And then you mix that with the body of water and the drowning ensues.

WALKER: Can you talk more about how ketamine is used for what kinds of patients and also the risks that are associated with medical use versus recreational?

MORGAN: Ketamine is really used as an anesthetic for anesthesia. Recreationally, it has moved into the area as -- of a hallucinogenic, a sort of a dissociative fit where you have an out-of-body experience. And the half life can vary, depending on the route of administration, whether it's taken as a liquid orally or snorted as a powder or even injected.

The IV administration, the effects are very rapid within seconds, intramuscularly within minutes -- and the oral form generally takes up to 30 minutes, but the oral form also has a longer half-life sometimes up to six hours. Even after the half life, after the drug has expired, the effects of ketamine can last up to 24 hours.

BLACKWELL: So up to 24 hours, although, according to what we learned from the report, and Amara pointed it out, the last infusion was a week and a half ago, does this suggest abuse, that there was an acute effect and this happened a week-and-a-half after the last recorded infusion of ketamine?

MORGAN: And certainly, with the last infusion, an IV infusion where the half-life is relatively short, within an hour, we wouldn't expect to still see it in his body. What we don't know is whether or not he was also being treated with an oral form or whether this was a recreational use. I just don't have that information.

WALKER: How do you compare ketamine for treating depression to the use of other anti-depressants such as Zoloft or Prozac?

MORGAN: You know, when we look at ketamine, certainly, it has to be monitored very carefully in these very special clinics with doctors who really know what they're doing. Because it can have interactions as well that can be unpredictable. And certainly, we want to make certain that if people are prescribed ketamine -- and it seems that Matthew Perry was one of these people that he is under very good doctor, supervision and doctors who really are familiar with managing these medications since they are used for depression and for anxiety with quite a bit of success.

WALKER: All right, Dr. Jayne Morgan, we'll leave it there, thank you very much. Still ahead, an immigration nightmare unfolds along the Arizona-Mexico border. Smugglers are dropping off migrants in remote, rugged areas, and that's making border patrol's job especially challenging.

(COMMERCIAL BREAK)

[06:40:00]

BLACKWELL: The battle at the southern border over the unprecedented migrant surge has now pitted Democrat against Democrat. Arizona's Democratic Governor Katie Hobbs just signed an executive order, it sends the National Guard to multiple locations along the state's border with Mexico. And in that order, she cites the Biden administration's inaction.

WALKER: Hobbs said the government's decision three weeks ago to close the Lukeville, Arizona, point of -- port of entry and reassign those border patrol workers has, quote, "led to unmitigated humanitarian crisis." CNN's Rosa Flores is there and got a look firsthand at the staggering surge that's swamping border facilities.

(BEGIN VIDEOTAPE)

JASON OWENS, BORDER PATROL CHIEF, UNITED STATES: How're you all doing?

ROSA FLORES, CNN CORRESPONDENT (voice-over): Jason Owens, the U.S. Border Patrol chief says his agency is overwhelmed by the unprecedented migrant surge with thousands of people entering the U.S. illegally every day. One hot spot, Lukeville, Arizona.

(on camera): Did you sleep outside?

UNIDENTIFIED FEMALE: (SPEAKING IN FOREIGN LANGUAGE)

FLORES (voice-over): Where Mida(ph) and her three children from Ecuador waited in the cold overnight to be transported for immigration processing.

OWENS: It's the border being exploited by the criminal elements, the transnational criminal organizations --

FLORES: Owens says some border patrol facilities are 200 percent to 300 percent over capacity, with about 20,000 migrants in custody. The federal government has temporarily closed three ports of entry, Eagle Pass, Texas, Lukeville, Arizona, and a pedestrian crossing in San Ysidro, California , interrupting lawful trade and travel while illegal crossings continue.

OWENS: It's frustrating for all of us --

FLORES: Owens says several dozen employees at these crossings have been reassigned to process migrants.

GOV. KATIE HOBBS (D-AZ): And it's certainly not the right response.

[06:45:00]

FLORES: Arizona Governor Katie Hobbs, a Democrat, wrote a letter to President Joe Biden, urging him to use the National Guard to reopen the Lukeville crossing.

HOBBS: That tourism is being greatly impacted in especially Rocky Point.

FLORES: Rocky Point is a resort town on Mexico's Sea of Cortez where many Americans own investment property like Boan Rubalcava from Utah.

BOAN RUBALCAVA, VACATION RENTAL OWNER: And now it's our only source of income --

FLORES: He owns seven vacation properties, and says he has lost $35,000 in cancelled reservations since the Lukeville Crossing closed. It's how Americans access the beach town.

RUBALCAVA: It makes me very upset because I feel like our leaders are failing us.

FLORES (on camera): She says that it's on TikTok, that it's on Facebook. (SPEAKING IN FOREIGN LANGUAGE) that the border is open. Apparent misinformation fueling the flow.

What's the backup in Lukeville?

OWENS: It's a very remote location.

FLORES (voice-over): Owens says the cartels have dropped off thousands of migrants in the rugged Arizona desert, creating a logistical nightmare for agents.

OWENS: And while we're doing that, we can't be out on a patrol, and so guess what the cartels and the smugglers are doing? They're using that opportunity to cross other things.

FLORES: Like fentanyl, cash and criminals, he says, apprehensions of people on the terrorist watch-list have spiked 15 and fiscal year, 2021, 169 in fiscal year 2023.

OWENS: These are the things that keep us up at night. There is nothing that crosses our borders illicitly that is not in the control of the TCOs and the cartels.

FLORES (on camera): That's a scary thought.

OWENS: It's very scary.

FLORES (voice-over): Owens says the only thing scarier are the got- aways. The people detected on the border but not apprehended. There's been more than 1.1 million since 2019. OWENS: They're making millions, tens of millions of dollars a week.

FLORES: A few hours after talking to Chief Owens on this boat ramp, an apparent coyote used the same ramp to smuggle a man into Laredo, Texas.

OWENS: These folks are probably the ones that have the criminal histories, that are coming in with bad intent.

FLORES (on camera): I asked the U.S. Border Patrol chief what he needs to keep the border safe. Let me show you, take a look at this wide shot of the scene here. You'll see the Arizona desert, the border wall, and Mexico is on the other side. The chief says that he needs technology, infrastructure, and more border patrol agents.

In the past few days, we've seen a steady flow of migrants walking along this path. Let me show you how they get into the United States. Smugglers on the Mexican side, they cut the border wall, and on the U.S. side, you see these white markings? These are repairs to the border wall. These pieces of metal are welded on to close the gaps.

Take a look at this one, because this is not just a freshly-cut border wall, it was just repaired last week. Now, I don't want to mess with the integrity of the border wall, but if I were to swing this open, this would swing, and that is how migrants are able to slip into the United States.

Now, this just shows you all of these repairs, just how relentless the smugglers are at crossing people into the United States and making a buck. Rosa Flores, CNN, Lukeville, Arizona.

(END VIDEOTAPE)

BLACKWELL: Rosa, thank you so much. Coming up, a new warning from federal regulators. Why they say the use of artificial intelligence could pose a risk to the financial system.

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[06:50:00]

WALKER: For the first time, the nation's top federal regulators are warning about the potential risk artificial intelligence poses to the American financial system.

BLACKWELL: The Financial Stability Oversight Council just released a report saying that A.I. could be a threat to financial privacy, consumer protections and fair-lending practices. CNN's Matt Egan has more.

MATT EGAN, CNN REPORTER: A.I. is clearly a game-changing technology. When you play around with some of these A.I. tools, it's almost mesmerizing what they can do. Lightning fast ability to craft song lyrics or write stories or even conjure images seemingly out of thin air. It has the potential to do a lot of good, but clearly, there are risks

as well. And U.S. officials, they are sounding increasingly nervous about what A.I. means for real life, including the financial markets that are at the heart of the modern economy.

Let me just give you a few examples laid out by regulators of how A.I. can introduce risks. First, A.I. can at times make bias decisions. And it is easy to see how that would be a problem in banking. Imagine getting denied a mortgage or a car loan by essentially a robot because of the color of your skin or your gender.

There's also a risk that hackers trick A.I. tools that banks use, essentially letting the bad guys in. So imagine your personal data gets stolen or you can't get into your bank account. One more I'll leave you with, there's this problem in A.I. known as Hallucinations.

Sometimes A.I. tools have this weird tendency to just kind of make stuff up, almost like what a toddler would do, but just way more believable. There's one recent example where a veteran lawyer here in New York filed a legal brief citing cases that turned out to be bogus, non-existent.

The source for those fake cases, an A.I. chatbot. So, it's easy to see how this would be a problem in banking or on Wall Street. All this explains why for the first time, regulators are classifying A.I. as a vulnerability to the financial system.

The Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and other regulators, they're basically putting the financial industry on notice. For banks, this means making sure that they don't add something to the system until they know it's truly safe.

But here's the problem. A.I. is developing very quickly. And companies are under immense pressure to be first, no one wants to be left behind. So it's going to be a real challenge for regulators to stay on top of something this complex, that is evolving as rapidly.

[06:55:00]

It's really a delicate balance, because if they regulate too little, something could go wrong. But if you regulate too much, then you risk stifling innovation and allowing other countries to get ahead in this A.I. arms race. Back to you.

WALKER: Fascinating look there. Thank you, Matt Egan for that report. Still to come, a remarkable week decades in the making. Six men now free after they spent years behind bars for crimes they didn't commit.

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WALKER: Hello, everyone, good morning. Welcome to CNN THIS MORNING, I'm Amara Walker.

BLACKWELL: I'm Victor Blackwell. WALKER: We begin with a severe weather threatening millions of people,

a powerful storm system bearing down on Florida and the entire east coast.

BLACKWELL: The possibility of flooding and severe winds has prompted Florida's governor to activate the National Guard. Tens of thousands of homes and businesses could lose power. Let's start now with meteorologist Allison Chinchar and what to expect. Allison?