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Early Start with John Berman and Zoraida Sambolin

OU Students Rally Against Racism; Chant Leader's Mea Culpa; Hillary Defends Using Private Email; Senator Cotton Backs Letter to Iran; ISIS Retreats; Steep Stock Selloff; Jury Sees Tsarnaev's Writings on Boat; Obama Offers Help for Student Borrowers

Aired March 11, 2015 - 05:30   ET

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


(COMMERCIAL BREAK)

JOHN BERMAN, CNN ANCHOR: They apologized, two students thrown out of the University of Oklahoma for their racist chant. One is speaking out. The other's family is doing the same. We'll tell you what they said.

CHRISTINE ROMANS, CNN ANCHOR: The secretary speaks. Hillary Clinton tries explaining away her e-mail controversy, but some of those explanations aren't satisfying the masses. How much trouble could this spell for a likely presidential run?

BERMAN: A new ISIS video shows the execution of a man that ISIS claims was a spy in this video it was a teenager who pulled the trigger. More ahead. Welcome back to EARLY START, everyone. I'm John Berman.

ROMANS: I'm Christine Romans. It is 30 minutes past the hour this Wednesday morning. Breaking news right now, a search and rescue mission under way on the Florida panhandle after an army helicopter crashed during a night training mission in Eglin Air Force Base.

Seven Marines and four soldiers on one of two Blackhawk helicopters are missing this morning. No word yet on the cause of the crash, but there are weather issues around the region which likely hampering the search for survivors. We'll keep you up to date on this breaking story as details come in.

BERMAN: Eleven service members there.

New developments this morning at the University of Oklahoma where two fraternity members are apologizing now for leading a racist chant, these apologies come hours after the two students were expelled from the university.

Yesterday students, faculty, locals, they came out in force to cheer the quick action by University President David Boren, also to protest racism. Our national correspondent, Miguel Marquez, is at the university with the very latest.

MIGUEL MARQUEZ, CNN NATIONAL CORRESPONDENT: John, Christine, this is the area outside the SAE house at the University of Oklahoma. Hundreds of protesters here have come to really rally and show support, more than anything, for what they did not like about that video that made its way around the world, ricocheted around the world.

We're also hearing from one of the individuals who has been expelled, saying that he actually withdrew from the school this Monday, Parker Rice from Dallas whose house we went to, and they have pulled out of their house.

In a statement he says that their family has received death threats. And also in that statement, I want to read part of it to you, he said, "I know everyone wants to know why or how this happened. I admit it likely was fuelled alcohol consumed at the house before this bus trip, but it's not an excuse.

Yes, the song was taught to us, but that, too, doesn't work as an explanation. It's more important to acknowledge what I did and what I didn't do. I didn't say no, and I clearly dismissed an important value I learned at my beloved high school, Dallas Jesuit.

We were taught to be men for others in quotes, I failed in that regard, and in these moments, I also completely ignored the core values and ethics I learned from my parents and others."

The family also asks that the media and other people please leave them alone for now because they are trying to figure out where everything goes from here. The people here at the University of Oklahoma, though, are going to stay on this.

They want the school to address all of the concerns that they have, saying that this is not the only instance of racism at this school. For its part, the school, which has come down very hard on SAE and on this incident, says the investigation is continuing. There may be more disciplinary actions and even more expulsions -- John, Christine.

BERMAN: Our thanks to Miguel for that. The family of the other student expelled is apologizing for his role in the racist video. "The Oklahoma Daily" student newspaper has identified the second expelled student as Levi Pettit.

His parents issued a statement saying, quote, "He made a horrible mistake and will live with the consequences forever. We were as shocked and saddened by this news as anyone. Of course, we are sad for our son, but more importantly, we apologize to the community he has hurt."

Now the last African-American member of the University of Oklahoma's SAE Chapter is speaking out. I spoke to William Bruce James II yesterday. He was a pledge at SAE 14 years ago. He says the fraternity that appears in the video is unrecognizable from his years there.

(BEGIN VIDEO CLIP)

WILLIAM BRUCE JAMES II, LAST AFRICAN-AMERICAN MEMBER OF OU'S SAE FRATERNITY: The guys in that video are not my brothers. My first reaction was complete disgust and shock. I was deeply offended as a black man, in general, but I was devastated also having been in that house for four years and put my own blood, sweat and tears in cultivating a culture that would never do that.

(END VIDEO CLIP)

BERMAN: Shocking new video has emerged from the now shuttered chapter of SAE. "The Oklahoma Daily" says the video seems to show the fraternity's house mother, Beauton Gilbow, laughing and singing the "n" word. Now she says this video was taken out of context and that she was singing along to a rap song, though she repeated the "n" word several times.

ROMANS: New this morning, Hillary Clinton trying to quell a raging controversy over her use of personal e-mail while secretary of state. Mrs. Clinton faced reporters for the first time in five months at the U.N. event Monday.

She struck a defiant note, defending her use of a personal e-mail server in Blackberry saying it was for convenience and that it was allowed under federal rules. For the very latest, let's bring in CNN senior Washington correspondent, Jeff Zeleny.

JEFF ZELENY, CNN SENIOR WASHINGTON CORRESPONDENT: Good morning, John and Christine. Hillary Clinton finally broke her silence, but she did not break the fever of controversy that's clouded her campaign in waiting for during the last eight days.

She vigorously defended during a news conference at the United Nations her use of private e-mail. She said any mistakes were innocent ones and this is how she explained it.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, FORMER SECRETARY OF STATE: And I have to add, even if I'd had two devices, which is obviously permitted, many people do that, you would still have to put the responsibility where it belongs, which is on the official. So I did it for convenience, and I now, looking back, think that it might have been smarter to have those two devices from the very beginning.

(END VIDEO CLIP)

ZELENY: But it's unclear if that two-device defense is going to wash. Some Republicans in Congress already saying, look, we use two devices ourselves. Why would that be such an inconvenience?

But Secretary Clinton was steadfast, saying that she did not break any laws. She said the server, that private e-mail server, was in their house in Chappaqua, New York. It was installed under the watchful eyes of the Secret Service, which is, of course, her husband and her have Secret Service attention.

But that is not enough for congressional investigators either. Look for them to potentially try and subpoena that server. So she did not clear up the full controversy around this.

She may have given more openings to answer questions, but it's clear that Secretary Clinton finally on the offense, for the first time in eight days, on the offense on this. Democrats will now surely come rallying to her side -- John and Christine.

ROMANS: All right, Jeff, thanks for that. The architect of the Senate letter warning Iran's leaders any nuclear deal is subject to Senate approval, doubling down on his efforts this morning.

In an op-ed for "USA Today," Arkansas Senator Tom Cotton reiterating, "Any deal without Senate approval would not be binding when President Obama leaves office.

He even invokes words from the vice president to make his point, saying, quote, "Then-Senator Joe Biden once reflected on this very topic writing, quote, "The president and the Senate are partners in the process by which the United States enters into and adheres to, international obligations."

Of course, Biden blasted Senate Republicans after 47 of them signed a letter to Iran. Some legal scholars and pundits also suggesting Republicans may have broken a little-applied 200-year-old law when they sent that letter, but no one's ever been prosecuted under that statute.

BERMAN: Later this morning, a Senate committee takes up the president's request to authorize the force against ISIS. The terrorist group released a chilling new video showing a child shooting a man that ISIS alleged to be an Israeli spy. This morning, Israel's defense minister says the victim had no connection to Israeli intelligence.

ISIS does appear to be losing grip on territory in IraqIraqi forces have taken back large parts of the city of Tikrit in Iraq. That happened overnight. The terrorists reportedly are retreating after a week there of heavy fighting.

I want to go live right now to Cairo to bring in CNN's Ian Lee for the very latest on this battle -- Ian.

IAN LEE, CNN CORRESPONDENT: Good morning, John. The Iraqi government says that they are in the final pushes for taking the city of Tikrit. A Shiite militia announced that they've taken the main hospital there that's just blocks away from the presidential palace and the heart of the city.

The government says that they will -- they expect to take the city in the next few days. This is a size -- a 30,000-large force that is taking this city and there really are two major tests we're witnessing here.

First is how the Iraqi army does. They melted away in the face of is when they took large swaths of the territory last summer of the country last summer. We'll see how they're doing now with their new training from the U.S. advisers as well as their new weaponry.

But also, very -- we're watching very closely as when they do, if they do take the city, how the Shiite militias treat the local inhabitants. They have a poor track record when they go -- when they went into previous Sunni-held areas. There have been claims of rights abuses. So we'll be watching to see how these militias treat the local inhabitants and this will be crucial for the future of Iraq, as we saw ISIS exploit the rift, the sectarian rift, between Sunnis and Shiites.

That's what helped them gain much of that territory. We'll be seeing when they go into Tikrit if they treat the locals benevolently or try to seek revenge -- John.

BERMAN: That's important for the future of that nation. Ian Lee, thanks so much.

ROMANS: All right, federal officials say the hacking of the State Department e-mail system over the past year is the worst ever against a government agency.

According to investigators, Russian hackers suspected of breaching State Department computers are also behind cyber-attacks targeting the White House and other federal agencies. Back in November State Department officials shut down the e-mail system over a weekend in an effort to bolster cyber-security.

BERMAN: New this morning, a departure in Ferguson, Missouri. The city council is voting unanimously to accept the resignation of City Manager John Shaw. He was cited in the scathing Justice Report that detailed racial bias in Ferguson including the police department and the municipal court system. Shaw supervised all city agencies including the police. Since that report, the Ferguson city clerk has been fired and two police officers have quit.

ROMANS: All right, 41 minutes past the hour. Time for an EARLY START on your money this morning, Asian markets are closed mixed. European markets opening higher after a market plunge in the U.S. yesterday.

Futures look like we could see a rebound today, a rebound from what was the worst day of the year for stocks. How bad was it? The Dow tumbled 332 points erasing all the gains of the year. The S&P 500 now negative for the year. It sank 2 percent.

The problem here is the surging dollar. It spooked investors. It is at a 12-year high against the euro and that's continuing today, the euro slipping even more this morning. Look, it's great news if you're traveling to Europe.

So if you're planning a trip, this is great news for you, but it's bad news for U.S. companies selling their goods overseas. It makes their products more expensive there and slashes the value of their overseas earnings. So it hurts the stock market.

It's 41 minutes past the hour. Dzhokhar Tsarnaev's own words introduced as evidence in court. What thoughts did the Boston bomber scribble in a boat as police surrounded him? That's next.

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BERMAN: A key piece of evidence presented in the trial of suspected Boston marathon bomber. At hand, the cryptic bloody messages he wrote while hiding on a boat after the attack. CNN's Deborah Feyerick takes us inside the courtroom.

DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT: Dzhokhar Tsarnaev has shown virtually no emotion in court. So the note that he scribbled inside the boat really is the first time jurors have had an opportunity to get insights into what he was thinking immediately after the blast.

Now, in the note, which is scribbled in pencil, it's marked by bullet holes as well as his own blood, Dzhokhar Tsarnaev says he's jealous of his brother who he believes is now entered paradise. He says he was meant to stay behind in order to shed light, in his words, on the brothers' actions.

He blames U.S. policy, saying that it was the killing of innocent civilians that, quote, "We Muslims are one body, hurt one, hurt us all." So this was really the first time the jurors got a chance to see or consider what he might have been thinking at the time.

That's a big part of the defense's attempts to spare him from the death penalty. Now, the judge did give the jurors an afternoon off, and that's because the judge, along with lawyers for both the defense and the prosecution, went to go see the boat.

There's a question as to whether the jurors will actually be able to look at the note itself, bullet holes, blood and all. So right now that's under consideration. The trial expected to continue today -- John, Christine.

ROMANS: It's such an emotional trial even the jurors shedding tears in the jury box.

It's 47 minutes past the hour. Let's take a look at what's coming up on "NEW DAY." Chris Cuomo joins us this morning. Hi, Chris.

CHRIS CUOMO, CNN ANCHOR, "NEW DAY": All right, how you doing? We're going to have the latest on the army helicopter crash in Florida, what was going on. We know that Marines and soldiers were missing. We'll give you the latest status on that search and rescue. It's good news that it's being called that, by the way.

We also have the news about the apologies from the two members of the fraternity seen chanting that awful racist video. Is too little, too late in terms of what it will mean for healing on that campus?

Also, are they allowed to expel these kids? I know it sounds like the right thing to do to many people, but the First Amendment, the 1964 Civil Rights Act, ironically, may both be legal barriers. We'll tell you why.

We'll also talk with a former member of the school's SAE chapter who happens to be black about the culture as he understood it at that school. What may have changed and what should happen now.

We'll also give you a couple more layers on the Hillary Clinton defense of private e-mails. Didn't she just say not too long ago that she did use two devices? The big defense yesterday was that she went to one device for convenience. What does that mean?

She won't turn over her server. What does that mean? What is the way forward here? We'll give you that, guys. That's what we've got, John and Christine, everything else that happens as well.

ROMANS: All right, thanks, Chris. Thanks so much for that. It's 47 minutes past the hour. We'll be right back.

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ROMANS: An update for you on this hour's breaking news. Dense fog is reported to be hampering a search and rescue operation on the Florida panhandle. That's where an army helicopter crashed during a night training mission at Eglin Air Force Base. We're looking there at live tower cam pictures from nearby Pensacola. That's what you just saw.

Seven Marines and four soldiers on one of two Blackhawk helicopters are missing this morning. No word yet on the cause of the crash. We're going to keep you up to date on the story as details come in.

Student loan debt weighs down millions of Americans. Now some new help could be on the way to help make it easier to pay it back. We're going to get an EARLY START on your money next.

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ROMANS: Let's get an EARLY START on your money this morning. Futures pointing to a slightly higher open for stocks, which would be relief after the stock market's worst day yet in 2015, the Dow and the S&P 500 erased all their gains for the year, big selloff yesterday.

Investors worried the strong U.S. dollar will hurt corporate profits next year. The euro has tumbled to a 12-year low against the dollar, is losing more ground this morning. Good for you if you're traveling to Europe. Bad for you if you're a big American company trying to sell there.

President Obama wants to make it easier for college graduates to pay back their student loans. He ordered the Education Department to develop a new system that allows students to file a complaint when there is a problem.

Last year students with loans graduated with $33,000 in debt, on average. Now, I talked to Mark Canduits, a student loan debt guru about how students can keep the debt down from the beginning.

(BEGIN VIDEO CLIP)

MARK KANTROWITZ, PUBLISHER, EDVISORS.COM: If you're expected to have a graduation, going to exceed your annual starting salary, maybe you need to borrow less or go to a less expensive school.

(END VIDEO CLIP) ROMANS: Borrow less and go to a less expensive school. That means liberal arts majors shouldn't borrow as much as, say, engineering majors.

Millennials are scared to invest. That's according to a new Capital One sharebuilders survey released exclusively this morning to CNN Money. It finds 90 percent of adults 18 to 34 say distrust of markets and lack of investing knowledge make them less confident about investing. That could hurt their long-term retirement plans.

It's 57 minutes past the hour. A military chopper goes down during a training mission in Florida, breaking news this morning, nearly a dozen personnel missing. "NEW DAY" with all the breaking developments on the search efforts right now.