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CNN Live Today
Rice Seeking Another Private Interview With September 11 Commission
Aired March 26, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan. And let's check the headlines at this hour.
National Security Adviser Condoleezza Rice is seeking another private interview with the September 11 Commission. A letter from the White House counsel to the panel said that Rice would like to clear up recent what they call, "mischaracterizations" of her views and actions prior to 9/11. The commission wants Rice to testify publicly, which the White House has refused to allow.
Chief Palestinian negotiator Saeb Erakat warned that the U.S. veto of a U.N. Security Counsel resolution could be a green light to Israel to carry out more assassinations. The U.S. was the sole vote yesterday against a measure condemning Monday's assassination by Israel of Hamas founder Ahmed Yassin. The U.S. says that it vetoed the resolution because it failed to condemn Hamas for terrorist attacks against Israel.
Jurors in the Tyco case are back in the jury room at this hour, with the threat of a mistrial now hanging over the court. Jurors were sent home yesterday after complaining of a poisonous atmosphere in the jury room, apparently due to a single juror. Former Tyco executives Dennis Koslowski and Mark Schwartz are accused of plundering Tyco more than $60 million.
And in Bridgeport, Connecticut demolition crews today will begin tearing down a badly burned section of Interstate 95. Intense heat from thousands of gallons of blazing fuel nearly melted the new overpass, caused by the spectacular crash of a tanker truck. The basic repairs will take at least 10 days, but it could be much long if engineering determine the entire overpass must be rebuilt.
We are going to begin this hour at the White House and the election year minefield of the 9/11 investigations. The Bush administration is offering to have National Security Adviser Condoleezza Rice appear before the 9/11 Commission again. This would once again be behind closed doors, not the public appearance that some panel members and victim's families are seeking.
Our White House correspondent Suzanne Malveaux joins us live.
Suzanne, good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. Well, the White House is sticking by its principle. They are saying that Dr. Rice is willing to go before the 9/11 Commission to answer those questions privately, but that she would not be willing to testify publicly before the full commission. She has gone before this commission before. She has talked nearly four and a half hours to answer their questions, and has said for the past several weeks that she would be willing to come back.
But in light of all of the criticism that has gone on in that two-day panel and following that with Richard Clarke, the White House is sending out this letter through its counsel Alberta Gonzalez of, writing to the chair and vice chair of the 9/11 Commission saying, "In light of yesterday's hearings in which there were a number of mischaracterizations of Dr. Rice's statements and positions, Dr. Rice requests to meet again privately with the commission."
But the White House still maintains, Daryn that essentially the principle here is that they do not feel an adviser to the president, who has not been confirmed by the Senate, should have to go before a legislatively created body and testify. Of course, the president could waive the executive privilege. They maintain that the president is not going to do that. But at the same time, they essentially want to convince the American people that Dr. Rice wants to have that story put out, and they do not want this mischaracterized -- Daryn.
KAGAN: Suzanne, one of the problems it would seem for the White House is controlling the agenda here. The president wants to be on the campaign trail, wants to be talking jobs and yet looks like the country is talking 9/11 Commission.
MALVEAUX: Well certainly President Bush is traveling today; again he is going to be talking about home ownership. He's also going to be talking about job training. But make no mistake, Daryn, the administration is also very much focused on this debate at what has taken place in the 9/11 Commission.
You may recall Richard Clarke, the former adviser to counter terrorism, said on "LARRY KING LIVE," accused Dr. Rice of being incompetent, saying there were two of the 9/11 hijackers that were in the country prior to those attacks. Had Dr. Rice been more diligent in doing her job, paying attention to the issue of terrorism, perhaps the whole attack could have been avoided.
Now, those are charges that the White House takes extremely seriously. And the one thing that they fear here is if the American people get some sort of sense that the administration did not do all it could prior to those attacks, that the president is going to lose ground here. This is a White House and a president that is running on hits record on national security -- Daryn.
KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you for that.
President Bush, as Suzanne was mentioning, is headed to the southwest today, that's where he'll wrap up a two-day campaign trip. Yesterday, Mr. Bush traveled to Boston, Massachusetts, hometown of his challenger, John Kerry. Mr. Bush portrayed the Democrat as a tax-and- spend liberal, whose voting record and political stands are, he believes, slippery at best.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Someone asked Senator Kerry why he voted against the $87 billion funding bill to help our troops in Iraq. Here's what he said. "I actually did vote for the $87 billion before I voted against it..."
(LAUGHTER)
BUSH: ... end of quote.
(LAUGHTER)
BUSH: It sure clears things up. Doesn't it?
(LAUGHTER)
BUSH: His answers aren't always so clear, but the voters will have a clear choice in this campaign.
(END VIDEO CLIP)
KAGAN: Well what about the Democrats? In Washington last night the gang was all there, it was a who's who of the Democratic Party. Two former presidents, a former presidential candidate, and most of John Kerry's former rivals for the nomination, turned out for what they called his "unity rally."
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I thought I'd start just by saying something nice about President Bush. Of all the presidents that we've had with the last name of Bush, his economic plan ranks in the top two.
(LAUGHTER)
(END VIDEO CLIP)
KAGAN: Kerry beginnings rolling out his economic plan for the nation today. The first of three speeches is set for Detroit.
Well, he did receive a boost from two former presidents at last night's rally; Bill Clinton and Jimmy Carter shared the stage with the presumptive Democratic nominee. Clinton says the choice is clear in November.
(BEGIN VIDEO CLIP)
BILL CLINTON, FRM. PRESIDENT OF THE UNITED STATES: If people think in this election. If they think about the choices that have been made and the vision John Kerry offers, we win. Therefore, they have to get people to stop thinking...
(LAUGHTER) CLINTON: ... and they're real good at that. And we already see what they do. They got to turn John Kerry from a three-dimensional human being into a two-dimensional cartoon. And it's what they know to do.
(END VIDEO CLIP)
KAGAN: Former President Carter chided Ralph Nader for joining the 2000 race as an Independent and possibly siphoning votes from John Kerry.
(BEGIN VIDEO CLIP)
JAMES CARTER, FMR. PRESIDENT OF THE UNITED STATES: Go back to umpiring softball games or examining the rear end of automobiles...
(LAUGHTER)
CARTER: ... and don't risk costing the Democrats the White House this year as you did four years ago.
(APPLAUSE)
(CHEERING)
(END VIDEO CLIP)
KAGAN: And John Kerry will discuss his economic plan with Lou Dobbs later tonight, "LOU DOBBS TONIGHT" 6:00 Eastern, 3:00 p.m. Pacific.
Court resumed last hour in the trial of two former Tyco executives, accused of pillaging hundreds of millions of dollars from the company. The judge said he would provide new instructions to the jurors, after they pleaded that a verdict is unlikely in an atmosphere that they are describing as, "poisonous."
Our financial news reporter Chris Huntington is outside the courthouse this morning.
Chris, this one sounds like it's on the verge of a mistrial.
CHRIS HUNTINGTON, CNNfn CORRESPONDENT: Daryn, that's the chatter in the courtroom and certainly among the legal analysts that are watching this closely. It all started yesterday, when a couple of notes came out from the jury. And of course, this is the case involving Dennis the Koslowski, perhaps best known for that $6,000 shower curtain. He and former Tyco Chief Financial Officer Mark Schwartz accused of stealing some $600 million from Tyco.
But late yesterday afternoon, the jury sent out a note at 4:00, as you mentioned, referring to a "poisonous" atmosphere. I'll read in part from the note.
"The atmosphere in the jury room has turned poisonous. The jury contends that one member has stopped deliberating in good faith. Said juror believes they are being persecuted. Many incendiary accusations being exchanged."
Then about 20 minutes later, another vote in part it read. And apparently that note from that juror referencing the first note. And in part, the second note read, "One or more jurors do not have an open mind as to the possibility of the defendant's innocence. And they refuse to recognize the right of at least one juror to have a good faith belief that the prosecution has not proved its case."
Well, this morning, we heard both sides arguing in front of the Judge Obus, that is both the defense and the prosecution. The defense asked for and was he denied a mistrial again this morning. The defense position is, look, clearly the jury cannot reach a decision. One juror has made up his or her mind that the prosecution has not proved its case. And the Judge Obus shot right back, "I could not disagree more with that juror," this is Judge Obus speaking, "... what that juror seems to be saying is that other jurors are not open to the possibility that the defendants may be innocent."
So what is going to happen now is Judge Obus is reviewing how he wants to reinstruct the jury. And he said, made it clear that he will reread some of his original instructions to the jury about deliberations. But then he would depart from that and basically, Daryn, give hem a 101 on the process of deliberation. He particularly wants to emphasize that essentially, these folks have to learn how to put aside differences in any kind of acrimony or accusations and really just get to the task of deliberation.
There's one other stage that this could get to, which is known as an Allen Charge; and that's a very strong, strictly worded rebuke by the judge that basically would say to the jurors, you have got to do your best to deliberate, because if you give up on this, that's like passing the buck. This would mean a mistrial; possible retrial and another jury will have the same burden you have. We have not gotten on it that stage yet.
We're in brief recess in court. We do expect the jury to come in and for the Judge Michael Obus to, as I said, reinstruct them and give them a brief primer on how they can essentially play nice in the sand box -- Daryn.
KAGAN: Jury deliberations 101, sounds like class is about to be in session in that New York City courtroom.
Chris, thank you. We'll check back with you in the next hour.
The voice of a dangerous man; does the latest message said to be from a top al Qaeda leader raise questions about Pakistan's war on terror? We'll have a live report Nic Robertson from Islamabad.
A life on hold; Kobe Bryant's accuser asked the judge to set a trial date already.
And later...
(BEGIN VIDEO CLIP)
JIM CARREY, ACTOR: I'm in my head already, aren't I?
UNIDENTIFIED MALE: That baby is history.
(END VIDEO CLIP)
KAGAN: It's a film about erasing memories. But will you want to erase your memory of "Eternal Sun Shin?" We'll ask Mr. Moviefone of what he thinks of the film.
This is CNN LIVE TODAY.
(COMMERCIAL BREAK)
KAGAN: A ski resort in San Bernardino in Southern California is experiencing an unwanted heat wave. The forest service set the blaze Wednesday to burn off some dead wood and some brush, a couple of miles south of Big Bear City. It didn't take too long for things to get out of hand, with flames popping up all over snow-covered hills. So far, it's covered hundreds of acres. Evacuations were ordered at two ski areas. And that is not too far from the area back in October that Southern California experienced those horrendous fires.
(COMMERCIAL BREAK)
KAGAN: Just a few minutes ago, CNN has learned that the CIA believed that a tape recording purported to be Osama bin Laden's lieutenant, Ayman al Zawahiri, is likely authentic. Al Zawahiri is the fugitive, who just last week, was thought to be cornered inside Pakistan.
Our senior international correspondent Nic Robertson is in Islamabad, Pakistan with the tapes' ominous call to arms.
Nic, hello.
NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT: Hello there, Daryn. Well we've just heard from Pakistan's information minister. He condemned this audiotape. Pakistani officials said they had been waiting to hear what the CIA would have to say before they made their own comments. He said that it was baseless. The government here wasn't afraid of it. Certainly it did strike at the heart of the government, though, calling essentially for the overthrow and the death of President Musharraf, and those in the government that support him.
Interesting today as well, we've seen demonstrations on the streets here, organized by an alliance of religious parties. Demonstrations against President Musharraf; against him because they are not happy with the way President Musharraf has been cracking down, chasing al Qaeda elements in the tribal regions, right next to the border with Afghanistan -- Daryn.
KAGAN: Is there anything on this particular tape, Nic that gives an idea when it was made? Any reference to the battle that's been taking place in the hills of Pakistan? ROBERTSON: There is reference to the battle. There's reference to the destruction of houses. There's reference to the killings of people. There's reference to the people being taken into captivity. Now, that could go any way back as far perhaps as June last year. It is perhaps the reference to the nuclear issue and the issue of Kashmir that perhaps gives an indication it was recorded maybe sometime towards the end of January, early February this year, maybe in that time frame.
Those issues, the fact the nonproliferation issue, the issue about Pakistan's nuclear weapons, and the issue of Kashmir, that sensitive region bordering Pakistan and India, were both very topical at that time. So it may have been recorded at that time -- Daryn.
KAGAN: Nic Robertson joining us from Islamabad. Nic, thank you for that.
The purported head of the Gambino crime family heads to court here in the U.S. today. Peter Gotti's lawyers urged the judge to be lenient in sentencing him. We'll tell you why.
And our Gerri Willis answers your personal finance questions today.
Hi, Gerr.
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Hey, should you buy that dream house overseas? Is that a good idea? And what should you do if you need to park money for the short term? We'll give you all the answers when CNN LIVE TODAY returns.
(COMMERCIAL BREAK)
KAGAN: Meanwhile, in today's "Top 5 Tips" home ownership seems to be an extremely popular topic with a lot of you. You've been sending your e-mail questions to our financial personal finance correspondent Gerri Willis. And she's with us now to give some of your answers. Hopefully that will be helpful not just for people who wrote in, but for a lot of people out there as well.
Gerri, good morning.
WILLIS: Hey, Daryn. Good to see you.
KAGAN: Let's get right to the first question. It comes from Tracey and Tracey wants to know, "can you discuss the benefits and pitfalls of buying a house abroad, specifically addressing tax issues?"
That seems like a good problem to have.
WILLIS: Yes, it is a good problem to have. More and more people are thinking about it because the prices of houses here in the U.S. have gone straight through the roof, as you know, Daryn. And price can be a really good reason to buy out of the country. Consider this. In California, can you pay over $2 million for a beach side house but if do you go to Costa Rica, $300,000, that's really a big savings. And a lot of people like that. Also, you might be able to make lots of changes in your house in another country because the zoning may not be as rigorous.
But here is the downside. Less regulation means less protection for you. You're going to want to have a specialist, somebody who is expert in international housing to help you find the right place. Check out the National Association Of Realtors Certified International Property Specialists Network on their web site, realtor.org. for help.
And on the question of taxes, the viewer also asked about taxes. Hey, you may end up paying big time if you sell that house. Keep in mind, you may owe money to the U.S. government, and also to the government where you buy that house. So good to know.
KAGAN: Good to know.
All right. Now, this next question for people on how to relocate for their job. They're going to be interested in this one.
This is from Stacey who writes, "I just sold my House in Washington, D.C. and moved to Charlotte, North Carolina. I am renting now for a year while I decide where to purchase a home. Looking for a yearlong investment opportunity. What would you suggest?"
WILLIS: Well, here's the good news. Housing in Charlotte is about half as expensive as housing in Washington D.C. So she could have some really big savings here. But she's right to put the money aside for a year in a safe place. A: you're not going to don't want to pick stocks because they're volatile. And B: you don't want to put it in a money market account because you'll lose ground against inflation.
So what do you do? I suggest a low to intermediate term bond fund, something safe with a little, tiny bit of juice. Consider ones that have incredibly low fees, vanguard or fidelity. And then make sure that you check the fund out carefully. One special fund, you might consider, a strategic income fund. But especially look to the fees -- Daryn.
KAGAN: And Stacey is going to be buying the huge house in Charlotte, North Carolina, party at Stacey's house.
(LAUGHTER)
WILLIS: You bet. I'll be there.
KAGAN: Next question also from Charlotte, North Carolina. But I think people outside of there will be interested.
This is from a Disgusted Dad who writes, "My daughter purchased a condo in Charlotte last year. When it comes to outside maintenance: shrubs, grass, cutting, planting trees, they say they have exhausted all the funds available. Does she have recourse? She pays extra for this service." That's from Disgusted Dad. WILLIS: Yes, you know, I think a lot of people face this question actually. And it's a tough one. This is why when you buy a condo you want to check out the budget ahead of time. Look at the operating budget closely. Do they have enough money for the very things that Disgusted Dad is talking about, all the maintenance, paying the staff? Make sure they have that.
And then they also need a reserve fund on top of that, in case something really bad goes wrong, like the roof caves in or something. That reserve equal to three to five percent of the condo's overall operating budget.
But for this young woman, who faces this problem, she first wants to go to the people managing this condo to make sure that they're doing something. Then to the condo board to find out if people are paying their condo fees. That's step No. 2.
If she gets no satisfaction there, some states have a grievance board that can you go to and make an appeal, try get some help. But you know, the onus is really when you first buy that condo to make sure they have the money they need.
KAGAN: Extra homework to do.
If people have questions for you, where can they write their e- mail questions?
WILLIS: You've got to send it to 5tips@cnnfn.com.
KAGAN: Very good. Gerri Willis, you have a great weekend. That's our tip for you.
WILLIS: You too.
KAGAN: All right. Thank you.
The national implications for murder in California; the Senate passes limited legislation that makes harming a fetus a crime. Will the president sign it? We'll have a live report.
And Kobe Bryant's accuser says she's tired of death threats. She asked the court to help her get her life back. The complete story coming up on CNN LIVE TODAY.
(COMMERCIAL BREAK)
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Aired March 26, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN headquarters in Atlanta. I'm Daryn Kagan. And let's check the headlines at this hour.
National Security Adviser Condoleezza Rice is seeking another private interview with the September 11 Commission. A letter from the White House counsel to the panel said that Rice would like to clear up recent what they call, "mischaracterizations" of her views and actions prior to 9/11. The commission wants Rice to testify publicly, which the White House has refused to allow.
Chief Palestinian negotiator Saeb Erakat warned that the U.S. veto of a U.N. Security Counsel resolution could be a green light to Israel to carry out more assassinations. The U.S. was the sole vote yesterday against a measure condemning Monday's assassination by Israel of Hamas founder Ahmed Yassin. The U.S. says that it vetoed the resolution because it failed to condemn Hamas for terrorist attacks against Israel.
Jurors in the Tyco case are back in the jury room at this hour, with the threat of a mistrial now hanging over the court. Jurors were sent home yesterday after complaining of a poisonous atmosphere in the jury room, apparently due to a single juror. Former Tyco executives Dennis Koslowski and Mark Schwartz are accused of plundering Tyco more than $60 million.
And in Bridgeport, Connecticut demolition crews today will begin tearing down a badly burned section of Interstate 95. Intense heat from thousands of gallons of blazing fuel nearly melted the new overpass, caused by the spectacular crash of a tanker truck. The basic repairs will take at least 10 days, but it could be much long if engineering determine the entire overpass must be rebuilt.
We are going to begin this hour at the White House and the election year minefield of the 9/11 investigations. The Bush administration is offering to have National Security Adviser Condoleezza Rice appear before the 9/11 Commission again. This would once again be behind closed doors, not the public appearance that some panel members and victim's families are seeking.
Our White House correspondent Suzanne Malveaux joins us live.
Suzanne, good morning.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. Well, the White House is sticking by its principle. They are saying that Dr. Rice is willing to go before the 9/11 Commission to answer those questions privately, but that she would not be willing to testify publicly before the full commission. She has gone before this commission before. She has talked nearly four and a half hours to answer their questions, and has said for the past several weeks that she would be willing to come back.
But in light of all of the criticism that has gone on in that two-day panel and following that with Richard Clarke, the White House is sending out this letter through its counsel Alberta Gonzalez of, writing to the chair and vice chair of the 9/11 Commission saying, "In light of yesterday's hearings in which there were a number of mischaracterizations of Dr. Rice's statements and positions, Dr. Rice requests to meet again privately with the commission."
But the White House still maintains, Daryn that essentially the principle here is that they do not feel an adviser to the president, who has not been confirmed by the Senate, should have to go before a legislatively created body and testify. Of course, the president could waive the executive privilege. They maintain that the president is not going to do that. But at the same time, they essentially want to convince the American people that Dr. Rice wants to have that story put out, and they do not want this mischaracterized -- Daryn.
KAGAN: Suzanne, one of the problems it would seem for the White House is controlling the agenda here. The president wants to be on the campaign trail, wants to be talking jobs and yet looks like the country is talking 9/11 Commission.
MALVEAUX: Well certainly President Bush is traveling today; again he is going to be talking about home ownership. He's also going to be talking about job training. But make no mistake, Daryn, the administration is also very much focused on this debate at what has taken place in the 9/11 Commission.
You may recall Richard Clarke, the former adviser to counter terrorism, said on "LARRY KING LIVE," accused Dr. Rice of being incompetent, saying there were two of the 9/11 hijackers that were in the country prior to those attacks. Had Dr. Rice been more diligent in doing her job, paying attention to the issue of terrorism, perhaps the whole attack could have been avoided.
Now, those are charges that the White House takes extremely seriously. And the one thing that they fear here is if the American people get some sort of sense that the administration did not do all it could prior to those attacks, that the president is going to lose ground here. This is a White House and a president that is running on hits record on national security -- Daryn.
KAGAN: Suzanne Malveaux at the White House. Suzanne, thank you for that.
President Bush, as Suzanne was mentioning, is headed to the southwest today, that's where he'll wrap up a two-day campaign trip. Yesterday, Mr. Bush traveled to Boston, Massachusetts, hometown of his challenger, John Kerry. Mr. Bush portrayed the Democrat as a tax-and- spend liberal, whose voting record and political stands are, he believes, slippery at best.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Someone asked Senator Kerry why he voted against the $87 billion funding bill to help our troops in Iraq. Here's what he said. "I actually did vote for the $87 billion before I voted against it..."
(LAUGHTER)
BUSH: ... end of quote.
(LAUGHTER)
BUSH: It sure clears things up. Doesn't it?
(LAUGHTER)
BUSH: His answers aren't always so clear, but the voters will have a clear choice in this campaign.
(END VIDEO CLIP)
KAGAN: Well what about the Democrats? In Washington last night the gang was all there, it was a who's who of the Democratic Party. Two former presidents, a former presidential candidate, and most of John Kerry's former rivals for the nomination, turned out for what they called his "unity rally."
(BEGIN VIDEO CLIP)
SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I thought I'd start just by saying something nice about President Bush. Of all the presidents that we've had with the last name of Bush, his economic plan ranks in the top two.
(LAUGHTER)
(END VIDEO CLIP)
KAGAN: Kerry beginnings rolling out his economic plan for the nation today. The first of three speeches is set for Detroit.
Well, he did receive a boost from two former presidents at last night's rally; Bill Clinton and Jimmy Carter shared the stage with the presumptive Democratic nominee. Clinton says the choice is clear in November.
(BEGIN VIDEO CLIP)
BILL CLINTON, FRM. PRESIDENT OF THE UNITED STATES: If people think in this election. If they think about the choices that have been made and the vision John Kerry offers, we win. Therefore, they have to get people to stop thinking...
(LAUGHTER) CLINTON: ... and they're real good at that. And we already see what they do. They got to turn John Kerry from a three-dimensional human being into a two-dimensional cartoon. And it's what they know to do.
(END VIDEO CLIP)
KAGAN: Former President Carter chided Ralph Nader for joining the 2000 race as an Independent and possibly siphoning votes from John Kerry.
(BEGIN VIDEO CLIP)
JAMES CARTER, FMR. PRESIDENT OF THE UNITED STATES: Go back to umpiring softball games or examining the rear end of automobiles...
(LAUGHTER)
CARTER: ... and don't risk costing the Democrats the White House this year as you did four years ago.
(APPLAUSE)
(CHEERING)
(END VIDEO CLIP)
KAGAN: And John Kerry will discuss his economic plan with Lou Dobbs later tonight, "LOU DOBBS TONIGHT" 6:00 Eastern, 3:00 p.m. Pacific.
Court resumed last hour in the trial of two former Tyco executives, accused of pillaging hundreds of millions of dollars from the company. The judge said he would provide new instructions to the jurors, after they pleaded that a verdict is unlikely in an atmosphere that they are describing as, "poisonous."
Our financial news reporter Chris Huntington is outside the courthouse this morning.
Chris, this one sounds like it's on the verge of a mistrial.
CHRIS HUNTINGTON, CNNfn CORRESPONDENT: Daryn, that's the chatter in the courtroom and certainly among the legal analysts that are watching this closely. It all started yesterday, when a couple of notes came out from the jury. And of course, this is the case involving Dennis the Koslowski, perhaps best known for that $6,000 shower curtain. He and former Tyco Chief Financial Officer Mark Schwartz accused of stealing some $600 million from Tyco.
But late yesterday afternoon, the jury sent out a note at 4:00, as you mentioned, referring to a "poisonous" atmosphere. I'll read in part from the note.
"The atmosphere in the jury room has turned poisonous. The jury contends that one member has stopped deliberating in good faith. Said juror believes they are being persecuted. Many incendiary accusations being exchanged."
Then about 20 minutes later, another vote in part it read. And apparently that note from that juror referencing the first note. And in part, the second note read, "One or more jurors do not have an open mind as to the possibility of the defendant's innocence. And they refuse to recognize the right of at least one juror to have a good faith belief that the prosecution has not proved its case."
Well, this morning, we heard both sides arguing in front of the Judge Obus, that is both the defense and the prosecution. The defense asked for and was he denied a mistrial again this morning. The defense position is, look, clearly the jury cannot reach a decision. One juror has made up his or her mind that the prosecution has not proved its case. And the Judge Obus shot right back, "I could not disagree more with that juror," this is Judge Obus speaking, "... what that juror seems to be saying is that other jurors are not open to the possibility that the defendants may be innocent."
So what is going to happen now is Judge Obus is reviewing how he wants to reinstruct the jury. And he said, made it clear that he will reread some of his original instructions to the jury about deliberations. But then he would depart from that and basically, Daryn, give hem a 101 on the process of deliberation. He particularly wants to emphasize that essentially, these folks have to learn how to put aside differences in any kind of acrimony or accusations and really just get to the task of deliberation.
There's one other stage that this could get to, which is known as an Allen Charge; and that's a very strong, strictly worded rebuke by the judge that basically would say to the jurors, you have got to do your best to deliberate, because if you give up on this, that's like passing the buck. This would mean a mistrial; possible retrial and another jury will have the same burden you have. We have not gotten on it that stage yet.
We're in brief recess in court. We do expect the jury to come in and for the Judge Michael Obus to, as I said, reinstruct them and give them a brief primer on how they can essentially play nice in the sand box -- Daryn.
KAGAN: Jury deliberations 101, sounds like class is about to be in session in that New York City courtroom.
Chris, thank you. We'll check back with you in the next hour.
The voice of a dangerous man; does the latest message said to be from a top al Qaeda leader raise questions about Pakistan's war on terror? We'll have a live report Nic Robertson from Islamabad.
A life on hold; Kobe Bryant's accuser asked the judge to set a trial date already.
And later...
(BEGIN VIDEO CLIP)
JIM CARREY, ACTOR: I'm in my head already, aren't I?
UNIDENTIFIED MALE: That baby is history.
(END VIDEO CLIP)
KAGAN: It's a film about erasing memories. But will you want to erase your memory of "Eternal Sun Shin?" We'll ask Mr. Moviefone of what he thinks of the film.
This is CNN LIVE TODAY.
(COMMERCIAL BREAK)
KAGAN: A ski resort in San Bernardino in Southern California is experiencing an unwanted heat wave. The forest service set the blaze Wednesday to burn off some dead wood and some brush, a couple of miles south of Big Bear City. It didn't take too long for things to get out of hand, with flames popping up all over snow-covered hills. So far, it's covered hundreds of acres. Evacuations were ordered at two ski areas. And that is not too far from the area back in October that Southern California experienced those horrendous fires.
(COMMERCIAL BREAK)
KAGAN: Just a few minutes ago, CNN has learned that the CIA believed that a tape recording purported to be Osama bin Laden's lieutenant, Ayman al Zawahiri, is likely authentic. Al Zawahiri is the fugitive, who just last week, was thought to be cornered inside Pakistan.
Our senior international correspondent Nic Robertson is in Islamabad, Pakistan with the tapes' ominous call to arms.
Nic, hello.
NIC ROBERTSON, CNN SENIOR INT'L. CORRESPONDENT: Hello there, Daryn. Well we've just heard from Pakistan's information minister. He condemned this audiotape. Pakistani officials said they had been waiting to hear what the CIA would have to say before they made their own comments. He said that it was baseless. The government here wasn't afraid of it. Certainly it did strike at the heart of the government, though, calling essentially for the overthrow and the death of President Musharraf, and those in the government that support him.
Interesting today as well, we've seen demonstrations on the streets here, organized by an alliance of religious parties. Demonstrations against President Musharraf; against him because they are not happy with the way President Musharraf has been cracking down, chasing al Qaeda elements in the tribal regions, right next to the border with Afghanistan -- Daryn.
KAGAN: Is there anything on this particular tape, Nic that gives an idea when it was made? Any reference to the battle that's been taking place in the hills of Pakistan? ROBERTSON: There is reference to the battle. There's reference to the destruction of houses. There's reference to the killings of people. There's reference to the people being taken into captivity. Now, that could go any way back as far perhaps as June last year. It is perhaps the reference to the nuclear issue and the issue of Kashmir that perhaps gives an indication it was recorded maybe sometime towards the end of January, early February this year, maybe in that time frame.
Those issues, the fact the nonproliferation issue, the issue about Pakistan's nuclear weapons, and the issue of Kashmir, that sensitive region bordering Pakistan and India, were both very topical at that time. So it may have been recorded at that time -- Daryn.
KAGAN: Nic Robertson joining us from Islamabad. Nic, thank you for that.
The purported head of the Gambino crime family heads to court here in the U.S. today. Peter Gotti's lawyers urged the judge to be lenient in sentencing him. We'll tell you why.
And our Gerri Willis answers your personal finance questions today.
Hi, Gerr.
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Hey, should you buy that dream house overseas? Is that a good idea? And what should you do if you need to park money for the short term? We'll give you all the answers when CNN LIVE TODAY returns.
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KAGAN: Meanwhile, in today's "Top 5 Tips" home ownership seems to be an extremely popular topic with a lot of you. You've been sending your e-mail questions to our financial personal finance correspondent Gerri Willis. And she's with us now to give some of your answers. Hopefully that will be helpful not just for people who wrote in, but for a lot of people out there as well.
Gerri, good morning.
WILLIS: Hey, Daryn. Good to see you.
KAGAN: Let's get right to the first question. It comes from Tracey and Tracey wants to know, "can you discuss the benefits and pitfalls of buying a house abroad, specifically addressing tax issues?"
That seems like a good problem to have.
WILLIS: Yes, it is a good problem to have. More and more people are thinking about it because the prices of houses here in the U.S. have gone straight through the roof, as you know, Daryn. And price can be a really good reason to buy out of the country. Consider this. In California, can you pay over $2 million for a beach side house but if do you go to Costa Rica, $300,000, that's really a big savings. And a lot of people like that. Also, you might be able to make lots of changes in your house in another country because the zoning may not be as rigorous.
But here is the downside. Less regulation means less protection for you. You're going to want to have a specialist, somebody who is expert in international housing to help you find the right place. Check out the National Association Of Realtors Certified International Property Specialists Network on their web site, realtor.org. for help.
And on the question of taxes, the viewer also asked about taxes. Hey, you may end up paying big time if you sell that house. Keep in mind, you may owe money to the U.S. government, and also to the government where you buy that house. So good to know.
KAGAN: Good to know.
All right. Now, this next question for people on how to relocate for their job. They're going to be interested in this one.
This is from Stacey who writes, "I just sold my House in Washington, D.C. and moved to Charlotte, North Carolina. I am renting now for a year while I decide where to purchase a home. Looking for a yearlong investment opportunity. What would you suggest?"
WILLIS: Well, here's the good news. Housing in Charlotte is about half as expensive as housing in Washington D.C. So she could have some really big savings here. But she's right to put the money aside for a year in a safe place. A: you're not going to don't want to pick stocks because they're volatile. And B: you don't want to put it in a money market account because you'll lose ground against inflation.
So what do you do? I suggest a low to intermediate term bond fund, something safe with a little, tiny bit of juice. Consider ones that have incredibly low fees, vanguard or fidelity. And then make sure that you check the fund out carefully. One special fund, you might consider, a strategic income fund. But especially look to the fees -- Daryn.
KAGAN: And Stacey is going to be buying the huge house in Charlotte, North Carolina, party at Stacey's house.
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WILLIS: You bet. I'll be there.
KAGAN: Next question also from Charlotte, North Carolina. But I think people outside of there will be interested.
This is from a Disgusted Dad who writes, "My daughter purchased a condo in Charlotte last year. When it comes to outside maintenance: shrubs, grass, cutting, planting trees, they say they have exhausted all the funds available. Does she have recourse? She pays extra for this service." That's from Disgusted Dad. WILLIS: Yes, you know, I think a lot of people face this question actually. And it's a tough one. This is why when you buy a condo you want to check out the budget ahead of time. Look at the operating budget closely. Do they have enough money for the very things that Disgusted Dad is talking about, all the maintenance, paying the staff? Make sure they have that.
And then they also need a reserve fund on top of that, in case something really bad goes wrong, like the roof caves in or something. That reserve equal to three to five percent of the condo's overall operating budget.
But for this young woman, who faces this problem, she first wants to go to the people managing this condo to make sure that they're doing something. Then to the condo board to find out if people are paying their condo fees. That's step No. 2.
If she gets no satisfaction there, some states have a grievance board that can you go to and make an appeal, try get some help. But you know, the onus is really when you first buy that condo to make sure they have the money they need.
KAGAN: Extra homework to do.
If people have questions for you, where can they write their e- mail questions?
WILLIS: You've got to send it to 5tips@cnnfn.com.
KAGAN: Very good. Gerri Willis, you have a great weekend. That's our tip for you.
WILLIS: You too.
KAGAN: All right. Thank you.
The national implications for murder in California; the Senate passes limited legislation that makes harming a fetus a crime. Will the president sign it? We'll have a live report.
And Kobe Bryant's accuser says she's tired of death threats. She asked the court to help her get her life back. The complete story coming up on CNN LIVE TODAY.
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