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Rick's List

Oil Leak Contained?; New U.S. Senator

Aired July 16, 2010 - 15:00   ET

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

DON LEMON, CNN ANCHOR: T.J. Holmes thank you sir. Have a great weekend will you? Thank you. There is a new U.S. senator. And he is filling some mighty big shoes. He's replacing the late Robert Byrd.

And we have a developing story to tell you about. We're watching this garage collapse in New Jersey, live pictures there from that scene. Rescuers are trying to get everyone out. As soon as we get more details, we will bring them to you.

Plus, we have this for you.

(BEGIN VIDEOTAPE)

LEMON (voice-over): Here is what's making the LIST today.

Having trouble with your iPhone? Who you going to call? Can Steve get the job done? Has it become, "iCan't"?

The pressure is rising. And that is a good thing.

DONALD VAN NIEUWENHUISE, GEOLOGIST, UNIVERSITY OF HOUSTON: The monitors inside the well are -- are actually being transmitted through transducers to the surface, and highly accurate digital gauges. And those digital gauges are what they're actually using to watch the pressure.

LEMON: Now will it hold?

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When the oil stops gushing, everybody feels like we're done, and we're not.

LEMON: And guess who tops the list our fashion victims in "Fotos"?

The lists you need to know about. Who is today's most intriguing? Who is making news on Twitter? It's why we keep a list. Pioneering tomorrow's cutting-edge news right now.

(END VIDEOTAPE)

LEMON: Hello, everyone. Hope you're enjoying your Friday.

And topping the list right now: a new meaning today for put a lid on it. What a welcome sight. Look at this. We are 24 hours into the test of BP's new cap, and so far no oil, no oil gushing out of that broken well. The cap was successfully put in place live during this very show yesterday afternoon.

President Barack Obama waited until today to herald this as good news, but warns before we can trust this latest development, we must verify.

(BEGIN VIDEO CLIP)

OBAMA: Our scientists and outside experts have met through the night and continue this morning to analyze the data from the well integrity test. What they're working to determine is whether we can safely shut in the well using the new cap without creating new problems including, possibly, countless new oil leaks in the seafloor.

(END VIDEO CLIP)

LEMON: This hour we're talking with CNN's David Mattingly. He has been covering this disaster since the very beginning, and Don Van Nieuwenhuise, a petro geoscience professor at the University of Houston.

Good to see both of you.

David, this is good news. But I imagine on the ground there might be a bit of skepticism here.

VAN NIEUWENHUISE: Absolutely.

DAVID MATTINGLY, CNN CORRESPONDENT: Well, there is skepticism only because of what so many people went through here, Don.

People feel like that the damage has already been done. Sure, it's great news that the well has been capped. But they're looking ahead to see what's going to be going on from here in terms of compensation, in terms of getting that oil out of the environment, off the beaches, out of the habitat areas, out of the fishing areas. So in that respect there's a lot still ahead for everyone here on the Gulf Coast.

But seeing that well capped, everyone acknowledges that was a turning point. And in the here and now, what we're hearing from BP is that so far they see no leaks, no surprises, so far, so good as they continue to raise the pressure up inside that well. This morning at a technical briefing, they told us they passed the 6,000 PSI mark, pounds per square inch, which sounds like a lot. But they have got a lot higher to go.

That level was important because they felt like if they couldn't get up to 6,000 pounds per square inch, then there must be something really bad wrong with the casing of that well down there inside. So, they passed that. So far, so good.

LEMON: And, Don, you heard David talk about the pressure here, and this pressure test. Is it safe to trust yet?

VAN NIEUWENHUISE: I don't know if trust is the right word, but it is soon enough to start considering the fact that we're starting to see good news come back.

The -- the initial results look very good. It's over 6,700 pounds per square inch right now. And that's also a good sign. What happens is, when the well is flowing, it temporarily draws down the pressure in the well. And, of course, once they close it, that pressure starts to rise back up, and it's very good news that it's rising slowly.

It's also very good news that it hasn't dropped or had a spike indicating a major leak somewhere, particularly near the surface. And they have also done a number of tests around the wellhead and found no indication of any problems at this point in time. And that's very, very good news at this point.

LEMON: Yes. No news is good news.

Do, David, we have to remember again this is just a test, right?

VAN NIEUWENHUISE: Right.

LEMON: It's expected to last 48 hours. And we're about halfway there now. Again, as I said, it was announced that it was capped during this very show yesterday, about 4:00 p.m., some time in the 4:00 p.m. hour.

So, listen, I want you to listen to the other statement from President Barack Obama and we will talk.

(BEGIN VIDEO CLIP)

OBAMA: even if a shut-in is not possible, this new cap and the additional equipment being placed in the Gulf will be able to contain up to 80,000 barrels a day, which should allow us to capture nearly all the oil until the well is killed.

(END VIDEO CLIP)

LEMON: So, David, it's not the permanent fix -- of course, that's the relief wells -- but definitely progress. What is the progress on those relief wells?

MATTINGLY: Well, the scenario that they are preparing us for, Don, is to have this oil collected at the surface, at least a vast majority of that oil, perhaps all of it collected at the surface, and this cap just being used temporarily, possibly, as sort of a hurricane measure, in case they have to disconnect and move those boats out of the area.

But, as far as the relief well goes, that's what everybody continues to point at as the true end of this disaster, when they are able to intersect that well and pump it full of cement. And they're very close. They say they're right where they need to be. They are moving in very slowly, very surely to an intercept point. They're less than 100 feet away.

And they keep talking about how well that is going. So, they're looking at possibly intercepting this maybe the end of this month, more likely into some time in August.

LEMON: Let's say this doesn't -- we hope it doesn't happen, Don. But let's say it doesn't hold. That means that water is going to start gushing back into the Gulf of Mexico again. So, is -- will we have to wait on the relief wells weeks, however long it's going to have to take if this, in fact, doesn't continue to hold?

VAN NIEUWENHUISE: Well, I don't think it's totally a matter of whether it will hold or not. If it doesn't hold like they want it to -- in other words, if there is a subsurface leak -- they can start producing a large amount of oil at the surface without leaking it.

And at that point, they will actually draw down the pressure in the top of the well, and the oil that's actually leaking deep in the subsurface could actually be drawn back into the well, just like a producing formation. But they're going to approach this very carefully. It's very complicated, and they may have to relieve pressure by opening valves and opening oil to the sea.

But it's not definite at this point that they will have to do that. They may do it just to be on the safe side, and then start to pull up the production, so that they can relieve the pressure that way, and get all the oil out of the Gulf of Mexico.

So, there are a couple of ways that we could have good results here until those relief wells get drilled.

LEMON: All right. It's nice, though -- both of you I'm sure agree, it's nice not to see oil spewing into the Gulf of Mexico.

Our thanks to David Mattingly and also Don Van Nieuwenhuise.

I want to read something. This is from BP America, the official tweet. Let's take a look at this. This is what they're tweeting. They said, "Feature head of BP's $20 billion claims fund say payments are expected being paid in early August." That's coming from the BP America official tweet site.

So, some of those claims are expected to happen early August. We will continue to follow this, of course, right here on the LIST today.

And also making the LIST: fallout from the scandal over the alleged Mel Gibson tape. Man, this has been one watercooler of a story. A reported rant played a part in a child custody hearing and now Gibson's ex-wife is speaking out. Wait until you hear what she has to say.

And meet the newest U.S. senator. We know he's filling the late Robert Byrd's seat, but what do you know about his politics? Is he a vote that President Barack Obama can count on? That's making our Yellin's list today.

(COMMERCIAL BREAK)

LEMON: All righty. Let's go to our follow-up list right now. Within the past hour, the governor of West Virginia named a temporary successor to the late former Senator Robert F. Byrd. Byrd served for a half-century. And the man who will succeed him wasn't even born until Byrd was in his third full term.

Let's go quickly to Washington now and our national correspondent, Jessica Yellin.

Jessica, the youngest senator replacing the oldest, do I have that right?

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Yes. You have it right.

His name is Carte Goodwin. He's just 36, Don. And I got to say, if we can roll the video, it's amazing. He looks and sounds like a senator out of central casting. He's got a young family, an impressive resume. If we have the video of the announcement, he's there with his young kids. It's his wife and young child.

Even Senator Jay Rockefeller said he has enormous respect for this young guy. Hollywood could not have scripted this better, in my view. The backstory, he is an attorney who was chief council to the governor. And that governor tasked him with some high-profile, sensitive political issues, clearly trusts him.

But the thing you need to know here, Don, is Carte Goodwin is intended to be a caretaker filling the seat until presumably Manchin can run for it.

LEMON: Yes. There's going to be a special election there, right, for that. He brought a whole lot of people. And we were watching the press conference. We're like, man, he has an entourage. The room is filled.

YELLIN: Well, there was also people with Senator Rockefeller, the senior senator. It looked like all of West Virginia's Democratic political establishment turned out for this one. It was quite a scene.

LEMON: All right. All right.

(CROSSTALK)

LEMON: The question is, though, really, is it going to have any immediate impact on the balance of power in the Senate, Jessica?

YELLIN: Yes. Well, when he's sworn in on Tuesday, he will be the 60th Democratic vote in the Senate. And today those folks there made clear that he plans to vote to extend unemployment insurance, so that Democrats should be able to defeat the Republican filibuster and get that passed next week. And overall now, they have 60 votes. So, that should make a little bit clearer sailing on some of these issues in the next coming weeks. LEMON: Jessica Yellin, let's get a break in here, why don't we? But right after that, we want to talk with you about the financial reform. The White House won the battle. But what's next? That's a question.

And, also, Apple has an answer for the flood of iPhone complaints. It is a rare P.R. disaster for the company. That's next on the LIST.

(COMMERCIAL BREAK)

LEMON: Welcome back everyone.

It was about this time yesterday that we all looked up and noticed that the oil had stopped flowing into the Gulf of Mexico, very good news. So, we never got around to our other huge story, and that's the final passage of the Wall Street reforms.

Jessica Yellin is back with us to help us get up to speed on what happened here.

So, tell us what happened.

YELLIN: You know, Don, we have got to think back to how all of this started almost two years ago. Americans woke up to find the country's biggest, most trusted banks on the verge of going under.

The government officials, even the head of the Treasury Department, who is a former titan of Wall Street, was terrified of an economic collapse. And we all began to get the sense our government had maybe been asleep at the switch.

So, remember then the crisis was so momentous, presidential candidates stopped campaigning and came to D.C. And it could have even given President Obama his victory in part. So, when President Obama took office in the middle of a near depression, he promised a reform so we would never have the collapse again. And now after more than a year of legislative wrangling, Congress has come up with a plan that the president is going to sign next week.

So, those Wall Street reform plan does a few things. One, it gives the government powers to unwind huge financial firms, like AIG, so the government can help take them apart, so they don't fail with -- so they fail without threatening the whole economy.

In other words, there would be no more too-big-to-fail firms in an ideal sense. It consolidates bank supervisors. That's to prevent banks from shopping around for the regulator that they think might turn a blind eye to their riskier practices.

And another point, it establishes a consumer protection bureau. That's intended to watch the terms of mortgages and loans and credit cards to make sure the rules are clear and responsible. There is, as you might imagine, a lot more to it. Those are the broad strokes.

And everyone with a vested interest says -- has a criticism. It doesn't do too much. It does too little. It does too much. But the bottom line is, we won't really know what it does for at least two years. That's how long it takes for some of it to go into effect.

LEMON: Basically, everything you mentioned there is just oversight, watching, making sure that this doesn't happen again, at least hoping it doesn't.

But as everything in Washington, that's what Washington is really all about, it turned into another partisan battle. So how will this play politically, especially going into the midterm elections?

YELLIN: Already, the House minority leader, John Boehner, has called for the bill's repeal and then for just amending it. And then today he said this, Don.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), HOUSE MINORITY LEADER: I think having a moratorium on new federal regulations is a great idea. It sends a wonderful signal to the private sector they're going to have some breathing room.

And I think there's probably a way to do this with an exemption for those emergency regulations that may be needed for some particular agency or another. But if the American people knew there was going to be a moratorium in effect for a year, that the federal government wasn't going to issue thousands of more regulations, it would give them some breathing room.

(END VIDEO CLIP)

YELLIN: The Republicans' reaction has White House officials basically dancing a jig.

(LAUGHTER)

YELLIN: Today, David Axelrod, one of the president's top advisers, he said the Republicans are basically misreading the mood of the country.

So, the bottom line on all this is, Democrats' political position is going to be that Republicans are trying to stand with powerful moneyed interest against everyday Americans. Republicans are going to counter this as just big government adding more regulation that will slow economic growth.

And this whole debate is really going to play a major role in the November elections, Don. So, we will get to hear a lot more of it.

LEMON: Rhetoric, rhetoric, rhetoric, right, from both sides?

YELLIN: Yes.

LEMON: Jessica, thank you. Happy Friday. Have a great weekend.

YELLIN: Good to see you. You, too. You, too. (BEGIN VIDEO CLIP)

MARK WILLIAMS, ORGANIZER, TEA PARTY EXPRESS: Racists have their own movement. It's called the NAACP right now.

(END VIDEO CLIP)

LEMON: The war of words between the NAACP and the Tea Party activists. First it was that comment by Tea Party Express spokesman Mark Williams, the comment that you just saw there.

Now he's released a letter elevating the controversy to a whole new level. I have got the letter and I will read it to you ahead on the LIST.

(COMMERCIAL BREAK)

LEMON: We have more now on that developing story we told you about at the top of this broadcast. A parking garage collapsed this morning in Hackensack, New Jersey. One person has been spotted by a specialized rescue camera in the rubble. Hackensack Fire Department Lieutenant Stephen Lindner says the person's condition is unknown right now.

He also adds this, that there was unconfirmed reports of two or three people missing from the adjacent apartment building. The garage collapsed shortly before 11:00 this morning. Engineers are assessing the integrity of the apartment building. They cannot guarantee that their inspection will be finished in time for residents to return to their homes tonight. What a surprise there.

This story tops a list of bureaucratic bungling compounding unimaginable grief. Three families in Texas are burying teenage daughters lost to a suspected drunk driver. Police had him right in their hands after this wreck, but they let him go, even someone could have -- some argue they should have figured out he was a potential flight risk.

Now, the long arm of the law will have to reach halfway around the world to Nepal to bring justice to three devastated families.

Watch this report from Rucks Russell and our affiliate KHOU.

(BEGIN VIDEOTAPE)

RUCKS RUSSELL, KHOU REPORTER (voice-over): It isn't easy saying goodbye, harder still for a mother trying to let go.

KATY ALANIZ, VICTIM'S MOTHER: It's hard.

RUSSELL: Last Friday, her daughter was one of three teenagers killed by a suspected drunk driver, the victims traveling together in an SUV. One of them was 13-year-old Avianca Cortez.

ALANIZ: She was very popular. Every school she went to, everywhere where went to, she was very popular. RUSSELL: On Wednesday, the popular girl was laid to rest. Doves were released in her honor, and anger festered over a police decision to release the man accused of causing her death, a man never arrested, now believed to have fled the country, Sajan Timalshina.

ALANIZ: I needed justice. Why did they release him?

RUSSELL: Police say Timalshina's field sobriety test was inconclusive and that he didn't appear to be a flight risk, even though he had only a student visa. Witnesses say he ran a red light, slamming his car into the SUV. The results of a blood alcohol test arrived on Monday, allegedly showing Timalshina's blood at nearly twice the legal limit. By then, he was long gone.

CAPT. BILL STANLEY, HOUSTON POLICE DEPARTMENT: Based on the decision and the information they had at the scene that night, it was reasonable. We don't want to put somebody in jail if we don't have a good solid case.

RUSSELL: Letting him go was a judgment call made by police and members of the district attorney's office, a judgment sounding alarm bells at Mothers Against Drunk Driving.

JULIO ZAGHI, MOTHERS AGAINST DRUNK DRIVING: And that person was able to leave the country, and that shouldn't have happened.

ALANIZ: He killed three kids, three innocent kids that -- it's hard.

RUSSELL: And a mother should never have been forced to say goodbye to her own child.

(END VIDEOTAPE)

LEMON: That was Rucks Russell reporting.

And I should tell you that the driver is believed to be headed to his homeland in Nepal. Houston's district attorney and the U.S. Marshal are vowing to do whatever it takes to bring him back to Texas to face charges. We will follow up on that one for you.

Straight ahead here on the LIST: James Cameron. How is the king of the world helping a U.S. team that's being kept out of a major international competition? That is ahead.

And golfer John Daly could be this year's Cinderella story at the British Open. But what about those pants? Come on, John. Purple? Really? Really? That's next on the LIST. Really?

(COMMERCIAL BREAK)

LEMON: Time now for our version of what not to wear. Let's do "Fotos."

UNIDENTIFIED MALE: Aye dios mio.

LEMON: Some are saying that about those pants. Aye dios mio.

Saint Andrews, Scotland, quiet on the course, loud on the legs. Golf great John Daly treats spectators to a rare sight at the British Open, hot pants. He calls them his good luck start pants. He's doing it all week. Currently, he is in third place, but we give him first place for fashion don't. Nice.

Now, let's talk about singer Pink adopting some new colors. I'm talking black and blue. You know want to know why? She fell off the stage during a performance in Germany yesterday. The harness was supposed to lift her into the air. Instead, it launched her into the crowd, oh, and a metal barricade as well. Take a listen. Ouch. OK.

Don't worry, though. She tweeted to her fans that she was fine. Pink is fine, a little black and blue. What color does that make?

Well, you can see all about our las "Fotos Del Dia" on CNN.com/ricksanchez.

And look who is talking about the scandal over the alleged Mel Gibson tape. His ex-wife describes her long history with the superstar. That is straight ahead.

And iPhone complaints -- got one right here for you. I want to know what's going on. They piled up. So, what is Apple's solution? The company held an emergency meeting. We will break it down for you. That's next on the LIST.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SENIOR MEDICAL CONTRIBUTOR: It's 6:41 a.m., July 18th. The exact moment six of our viewers and I have been training for -- the start of the New York City marathon. We first met the gang right here on "AMERICAN MORNING" back in January.

JOHN ROBERTS, CNN ANCHOR: He chose six "AMERICAN MORNING" viewers to join him on the journey.

GUPTA: And each one was there for a very specific reason.

MEREDITH CLARK, FIT NATION TRI-ATHLETE: I found a statistic that 79 percent of African-American women are overweight or obese. I really wanted to inspire everyday people that their family history doesn't have to be their future.

GUPTA: Linda Fisher-Lewis retired from police work after a bad car accident. She wants to return to her dream job.

LINDA FISHER-LEWIS, FIT NATION TRI-ATHLETE: I just want to show myself and others that I'm ready to get back to my job.

GUPTA: Angie Brouhard had just finished treatment for breast cancer. ANGIE BROUHARD, FIT NATION TRI-ATHLETE: Any time you have an illness, you feel like you're not going to be back to normal. I want to show everyone that you can not only be where you were before, but you can be better than ever.

GUPTA: Teachers Rickey Williams and Stanley Saballett say it was about inspiring their kids.

RICKEY WILLIAMS, FIT NATION TRI-ATHLETE: They're pumped and want to train with me and be a part of it.

STANLEY SABALLETT, FIT NATION TRI-ATHLETE: We want to inspire them to workout, live healthy, and be happy.

GUPTA: And Police officer Dean Hammond wants to have kids of his own.

DEAN HANAN, FIT NATION TRI-ATHLETE: My dad was always running. He provided a good example for me, so I want to be able to do that for the kids I will have in the future.

GUPTA: Since that day they've been on a strict workout regimen and diet. They worked up to combined 18 miles of swimming a week, 78 miles of running, and almost 500 miles of cycling. All told, they've lost 137 pounds.

Now as they enter the homestretch, each and every one says they're confident they'll cross the finish line.

Dr. Sanjay Gupta, CNN reporting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

LEMON: Welcome back to the list everyone. We always ask for your feedback, so let's turn to twitter. This is @donlemonCNN. "What's wrong with John Daly wearing pink? Real men wear pink. Pink falling off the stage and John Daly wearing pink."

"I guarantee talking about the cops and the drunk driving in Oakland, I guarantee those cops in Oakland will have time to write you a speeding ticket."

Someone is laughing about we did the "no oil dance." The show team tweeted us. We're so happy the oil is not flowing. "If those cops in Oakland aren't going t to respond to calls, then what the hell do they need police for?"

Someone who loves Rick Sanchez says, on a sad note, "Now the oil well is capped, we won't hear Rick Sanchez say "Pump it full of cement" anymore. He'll be back and say it for you.

This one saying "the oil leak has stopped hopefully for good, but the damage will last a lifetime for those affected. No Rick on "RICK'S LIST"? How boring." Rick will be back. We'll change it for the day to "Don's List."

(BEGIN VIDEO CLIP)

MARK WILLIAMS, TEA PARTY: Racists have their own movement. It's called the NAACP.

(END VIDEO CLIP)

LEMON: That is Mark Williams. He's a tea party spokesman feuding with the NAACP. It's even worse. Today he has written an outrageous note that's burning up the blogs and offending a lot of African-Americans. It's offending just a whole lot of people. You don't have to be African-American to be offended by that. That is next.

But Mark Williams isn't today's most intriguing person. Who is? The big reveal next on "The List."

(COMMERCIAL BREAK)

LEMON: When we checked out our list of most intriguing people in the news today, this a-list filmmaker has donated $50,000 to a Native American lacrosse team in New York. He's helping cover part of their expenses while they sort through travel problems.

The Iroquois lacrosse team wants to get into the U.K. to play in the world championship. The British government refuses to recognize their tribal documents. And the team has refused a U.S. offer of expedited passports.

The team has already forfeited one game and says the delay is costing them $25,000 in expenses in New York. That tab should be no problem to cover for today's most intriguing. His latest film "Avatar" has made over $2 billion worldwide. That's a lot of cash.

Show him. There he is. We're talking about director, inventor, and underwater explorer James Cameron. He is one of today's most intriguing people in the news.

We've been talking a lot about the NAACP and the tea party blowup. Let's go to the twitter board now and see what they're talking about here.

This one is from @ricksanchezcnn. Tea party leader says "NAACP profits from racism more than slave traders did." That's coming from the NAACP. This whole thing is really -- I thought it was over, everybody had their say, it had died down in the news. Now it's heating up again. We'll tell you a little bit more about that.

Here is another question. Who leaked a list of people labeled illegal immigrants, naming children and pregnant women, or perhaps a better question, who compiled it and why'd they do it? Ahead I'll tell you about this controversial list causing trouble in Utah.

And Apple, you got some explaining to do. They'll give some free merchandise to iPhone-4 users to remedy their reception woes, but will it fix the problem? I want to know. That's next. This is my phone right here. I got the bumper and everything. What's going on? Steve Jobs, help a brother out. I want to know.

(COMMERCIAL BREAK)

LEMON: You know what I'm talking about if I say it tops the list of the most anticipated products rollout this year. You know what I'm talking about. It's this little thing right here that a lot of people waited in line or all day.

Can we take the computer here? As soon as you go to Apple.com, guess what you see. Iphone-4 is here. That's the anticipation.

But there's some issue. Remember the joy and excitement of getting your hands on this, that iPhone-4. But the joy quickly turned into frustration for a number of Apple die hard because getting your hands on the iPhone frequently resulted in that death grip that killed your call.

Then they put this thing around it that's like rubber and pulls your money out of your pocket. Apple just announced it fixed that problem. It started with Steve jobs making a rare admission.

(BEGIN VIDEO CLIP)

STEVE JOBS, CEO, APPLE: You know, we're not perfect. We know that. You know that. And phone aren't perfect either. But we want to make it -- make all of our users happy. If you don't know that about Apple, you don't know Apple.

(END VIDEO CLIP)

LEMON: I need some help on this story. Molly Wood, the executive editor of the tech site called cnet.com. That was a tough moment for Steve Jobs to say Apple is not perfect, because pretty much whenever he talks about the company, it's perfect, the best thing going.

MOLLY WOOD, EXECUTIVE EDITOR, CNET.COM: Absolutely. In fact, when he originally talked about that antenna design in the keynote where they unveiled the iPhone-4, he said it was pretty much the perfect antenna design, that it was a work of genius and it would make reception a lot better.

So I'm sure it was incredibly hard for him to have to come out there. He's not a guy who likes to admit any wrongdoing.

LEMON: It's interesting because, again, I'll show you here. But what they're doing is they take this bumper, the antenna is wrapped around the phone. So when you put your hand around it, they say that the reception goes away.

So in order for you not to touch the antenna directly, you have to buy a bumper sew that you don't touch it directly. Apparently, I'm not sure if it was helping much. But Molly, Jobs spent a good deal of time defending the iPhone-4. He contends that they have similar problems, bars go down when you hold it a certain way.

I've got to tell you, I got this one here versus my blackberry. I've got the old iPhone original and I've got the iPhone-4. With the blackberry I've never had an issue with where I hold it.

WOOD: It was a very interesting strategy to come out and say, look, this is the problem that every smart phone maker is struggling with. If that's the case, it's sort of this dirty little secret of cell phone design that for years all these phones have been sacrificing call quality for aesthetics, apparently.

He definitely would not admit there was any kind of problem with the antenna design. He didn't say they were going to work on a fix for it because he said, frankly, it's possible it may not be fixable. It's just a physics issue. And instead he said everyone can have one of these free bumper cases, and if that's not good enough, you can bring the phone back for a full refund.

LEMON: I paid $29.99 for the bumper. I think I get a refund.

WOOD: You do. You get your money back.

LEMON: So he's downplaying this whole death grip thing, but there have been so many people complaining about it. Is it being blown out of proportion? Is it credible? Who is right here?

WOOD: I think both people are right. There's no question that it's an issue. It is an issue with the iPhone-4 and enough of an issue that people who live in -- it may be compounded by the fact that AT&T has spottier service in some areas, so those people who already lived in areas with spottier service are also having the death grip problem. And those two things are a whole other kind of depth.

But I think Steve jobs is right to say it was definitely a problem that was sort of compounded by the media. But that's the sort of thing that -- it's obviously enough of a problem that he felt like he had to address it. I think there is something -- it's more of a legitimate problem than he was willing to admit.

LEMON: Molly, since the release of this new iPhone-4, I think the stocks have been down around seven percent. Does it take one issue like this to maybe turn Apple in the wrong direction, because before it was up, up, up?

WOOD: Yes. And you know, the stock is kind of flat or up a little bit today. At least it was immediately after the announcement.

What I think is going to happen, what may come out of this long term, is there's a bad taste in people's mouths now about the initial response from Apple. They're saying there's a serious problem here, we can reproduce it.

And Apple's initial response was pay $30 for the case or don't hold it that way. I think that made people feel like, you know what, I don't know if I feel so good about Apple right now.

LEMON: I felt that maybe he was condescending a little bit. He's saying if that's not good enough, return it.

Here is the question, though, because people were concerned about it being AT&T. If you wanted the iPhone-4 you had to sign up for at least two more years. It's I think January when they would allow Verizon, another carrier to use iPhones. So might they add it earlier because of this problem when you talk about the issues of AT&T?

WOOD: The January timeframe is still a rumor. Supposedly they have a contract with AT&T. People might find the death grip issue isn't as big a deal for them. But I have a feeling that the next iPhone will have -- will be accompanied with some kind of announcement of a better coating maybe over the x-marks-the-spot that he mentioned.

LEMON: Molly, before you go, I want you to see this tweet I just got from Ray Williams Johnson.

WOOD: OK.

LEMON: It came into Rick Sanchez's twitter account. He says "I hear there's a new iPhone-4 glitch that causes the phone to reach out and slap the owner across the mouth for buying the phone too early."

(LAUGHTER)

I have an app for that. That's true. So the question is, will people next time -- because people run out and get everything from Apple, the iPad. Do you think people will be more cautious and it won't be a run on Apple the next time they release a product?

WOOD: I think that the effects will linger for a while. I think the people who aren't the super diehard, maybe the medium diehard folks, they will take a minute next time.

LEMON: Molly Wood, good info. We'll see what happens.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES OF AMERICA: One of the problems with having this camera down there is that when the oil stops gushing, everybody feels like we're done. And we're not.

(END VIDEO CLIP)

LEMON: We're not done by a long shot. If you listen to the experts, the options, contingency plans, best-case scenarios, we'll lay them all out for you in our next hour on "The List."

And Mel Gibson, wow, getting hammered by more tapes leaked by Radaronline.com. But what about the ex-girlfriend? Closer scrutiny of those tapes have people asking more questions about her motives. That's next on "The List."

LEMON: That nasty custody battle between Mel Gibson and his ex- girlfriend Oksana Grigorieva is making the list again today after another alleged tape, a tirade by Gibson surfaces on Radar Online.

Now his ex-wife Robin is coming to the Oscar winner's defense. And TMZ is reporting a family court judge in Los Angeles did not change the current custody arrangement for baby Lucia at a hearing yesterday. Gibson and Grigorieva share custody. Detectives investigating the abuse allegations reportedly picked up copies of the secretly recorded tapes at the hearing. I'm sure they'll be going over that to see if they're authentic or doctored.

Gibson's lawyers say they have evidence the tapes were doctored. CNN has not authenticated the voice on the tapes released by Radar Online is actually Gibson's. Grigorieva tells CNN that the tapes speak for themselves. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How dare you? You wanted the number of my therapist? Don't you ever speak to him! Find your own (expletive) therapist. Cause you got problems, more than me.

UNIDENTIFIED FEMALE: You need medication.

UNIDENTIFIED MALE: You know how to push my buttons and it is not going to work with us. It's not. I can't get like this anymore. And you know you're doing it.

(END VIDEO CLIP)

LEMON: In this one the man's voice seems to threaten to burn the house down.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: How dare you act like such a (expletive) when I've been so (expletive)nice? I'll burn the (expletive) house down. You're a pain in my (expletive). Stop being that.

(END VIDEO CLIP)

LEMON: We continue to reach out to Gibson for a response to verify the authenticity of this tape, but so far he has not commented.

"People" magazine is reporting Gibson's ex-wife released the following statement to the court. "Mel never engaged in any physical abuse of any kind toward me before, during, or after our marriage. He was a wonderful and loving father."

I want to bring in now Brooke Anderson, host of "SHOWBIZ TONIGHT." Brooke, you know, you realize that behind this there may be abuse and all of that, but it almost sounds like a scene from a movie, and it's kind of laughable, like is he really serious with all of this?

BROOKE ANDERSON, HOST, "SHOWBIZ TONIGHT": It is to the point of absurdity almost, it's gotten so extreme, Don. I have to tell you that radar online is standing by the authenticity of these tapes. They say that the tapes have not been tampered with. They have not been professionally altered in any way, a claim that Gibson's team will reportedly use to try to render these tapes inadmissible in court.

Radar Online's editor-in-chief, though, tells CNN this, quote, "Top experts have certified the tapes are genuine and authentic. To say otherwise is simply a defense strategy. Mel simply cannot deny he said these hateful words, spewed these vicious rants, had these conversations. The real question is when will he take responsibility for his words?"

And I've got to tell you, if it is indeed Mel on these tapes, it doesn't matter if portions were omitted, if parts were edited out or deleted. He still spews vile, offensive, hateful, racist language, and allegedly verbally emotionally abuses the mother of his child, and seemingly at one point admits to physically abusing her. Authorities are investigating an allegation of domestic abuse.

And to answer the question what were Oksana's intentions and motives here, Mel's team is reportedly going to claim extortion. But there is no proof yet that anybody extorted money from anybody. Radar Online is saying that Oksana feared for her safety.

LEMON: That's right. Not to condone anything, because the things he said if it was actually him because he hasn't authenticated it, it's awful.

But why release it to radar online? Because people, couples have arguments all the time, yell at each other, say things they shouldn't say in the heat of the moment. Why not handle this with the police department or with an attorney? Why release it to Radar Online and true to ruin someone? That's the question many Americans are asking.

ANDERSON: A lot of people are asking that same question. And Oksana is claiming that she did not release the tapes. So there is still a question of how exactly were these tapes released? Radar Online is saying Oksana did not directly give them the tapes. So that's a question still floating out there.

LEMON: People, you know, I have to tell you, Americans don't like it when people are set up. And some people feel like Mel Gibson was set up.

And I heard last night on "Larry King" one of the voice experts saying sounds like she had some help. She was using a high powered microphone. Someone helped her out. So if he was indeed set up, do you think it'll change what people think about him? Do you think it'll have a different impact on his career?

ANDERSON: Possibly, Don. I have no doubt he was set up. Oksana clearly knew these conversations were being recorded, Mel did not. But that does not excuse the way he spoke to her.

LEMON: Right.

ANDERSON: And it almost seems like, you know, he is through professionally, like he cannot fully recover from this. Really, Don, are people going to go out in droves to see his next film? Speaking of which, poor Jody Foster directed him in the movie "The Beaver" which is supposed to be --

LEMON: They had pickup scenes during this scandal.

ANDERSON: It's a comedy, too. Are people going to be able to stomach Mel in a comedy after hearing these tapes? I say it's going to be a major uphill PR battle for Mel, and I'm talking a Mount Everest type effort here.

Keep in mind, he has not said one word about this scandal, so he is being tight lipped about this thing for the first time in his life.

LEMON: I don't think he'll say anything about this. He would be crazy to say something. I think he should just let the lawyers deal with it.

So maybe as an actor people won't go out to see his movies, Brooke, but, you know, with "Passion of the Christ" the director and all of that, might he still have a chance behind the camera in a different part of the business maybe?

ANDERSON: Potentially. And you bring up "The Passion of the Christ" and that movie made more than $600 million worldwide. And a lot of people are saying is this really the same man that made such a beautiful movie? Is this really the same man who claims to be a godly person?

So a lot of people are very, very confused about these tapes and about the true person that Mel Gibson really is. I think time will tell. We'll see what happens with that domestic violence investigation and what happens with child custody.

Like you said, his ex-wife is reportedly defending him, signed a sworn declaration to the court reportedly saying he was never physically abusive to her.

LEMON: I usually don't like these stories. I always say it's between the two people. But given what's on the tape, what's happened, if he was set up, what have you, his ex-wife and everything, this is actually fascinating and I think it is a legitimate news to sort of break this down and see where it's going.

ANDERSON: In a sad way, yes.

LEMON: Especially when it comes to anger management and what have you. Brooke, I'll be watching tonight. Thank you.

ANDERSON: Thanks, Don.

LEMON: We want to read some of the tweets about Mel Gibson. "Just a thought" -- this is from Joan Rivers. She goes, "Just a thought. If Mel Gibson ever got in touch with his feminine side, he'd beat the crap out of it." Again, that's coming from the legendary Joan Rivers there. And one of my favorites -- Joy, I love you, Joy V. Behar of "The Joy Behar Show" on HLN. "BP says the well is contained and no more oil is spewing out. Now if only that same technology could be used on Mel Gibson's mouth." Thank you, Joy, for that tweet.

Bill Maher weighing in. "Watching Mel Gibson in "What Women Want," I don't know, something about it just feels different now." Our thanks.

OK, listen, we have some developing news to tell you about here, topping the CNN money list, a big ouch on Wall Street. The Dow falling more than 250 points right now. It is down -- I can't read that -- looks like 260 points. Let's go to Alison Kosik. What's going on?

ALISON KOSIK, CNNMONEY.COM: It's a combination of weak corporate earnings and a plunge in consumer confidence. That simple combination is what caused this huge selloff that we have right now.

The Dow Industrials just seconds before the closing bell, down 262 points. Citigroup and Bank of America, Don, both companies beat expectations, but their revenues fell because of the stock market's plunge this spring.

The big worry is if companies can't grow, the economy can't grow. And all of this has everybody worried about how banks would make money in the future under new government regulations. In general, there is concern that the slow pace of growth in the overall economy is going to drag on companies' ability to grow.

There is the closing bell. The Dow Industrial finishing off this Friday down 259 points. Don?

LEMON: People had the whole weekend to think about it. It's not like the market tomorrow will be able to bounce back. People have to wait a couple days to see what's going on. Ouch, that hurts.