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CNN Saturday Morning News
Global Rate-Fixing Scandal; Kidnapped Tourists In Egypt; Tattoos Keeping Immigrants From Obtaining Visas; Drug Smuggling Tunnel From Mexico; Romney's Exit from Bain in Question; Condoleezza Rice Suggested as V.P.; Personalized 911 Calls; Fallout from Penn State Report; Life after Training, Games are Done; Inside the Making of Robotic Snakes
Aired July 14, 2012 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RANDI KAYE, CNN ANCHOR: A wave of homicides hits U.S. cities, Chicago compared to Afghanistan, a spate of shootings rattle New York. All morning we'll put murder in America in focus.
Shopping with your credit card today? Soon you might have to pay more per swipe. The $7 billion credit card company settlement is being called a victory for retailers, but it could be a loss for you.
Plus, sex, alcohol, rockets, all nighters. No, it's not a college dorm party. It's the Olympic village after dark. I'll talk with two Olympic gold medalists live.
Good morning, everyone. I'm Randi Kaye. It's 8:00 a.m. on the east coast, 5:00 a.m. out west. Thanks for waking up with us. We're glad you're with us. We begin with the historic credit card settlement that could mean more fees for you.
Visa, MasterCard and some of the country's biggest banks have agreed to a massive $7.25 billion settlement with retailers. The lawsuit centers around credit card swipe fees. Merchants allege credit card companies were fixing the price on those fees. That settlement also gives retailers the green light to charge more if you use plastic.
I spoke with Doug Kantor, who is a lawyer with the National Association of Convenience Stores. Here is what he says about the potential impact to your bottom line.
(BEGIN VIDEO CLIP)
DOUG KANTOR, NATIONAL ASSOCIATION OF CONVENIENCE STORES: It means the swipe fees that all of us pay now, without even knowing it, we're going to keep paying without even knowing it. And the big banks are going to make plenty of money and all of us are going to be left wondering why we have less spending power than we thought we should.
(END VIDEO CLIP)
KAYE: And speaking of big banks, JPMorgan Chase is now the focus of a Federal investigation. After the nation's big bank said that losses from risky trades totaled nearly $6 billion, that's up three times more than JPMorgan initially reported. Investigators want to know if traders hid the size of the losses after the bank said an internal probe found reason for suspicion.
A CEO in the middle of a $200 million fraud scheme was arrested after he allegedly tried to commit suicide. Russell Wasendorf Sr. is CEO of Peregrine Financial Group. Iowa police say they found him in his car with a note written to his wife which allegedly had a confession it in saying, I have committed fraud. The note also allegedly details how he made forgeries to embezzle money.
Moving overseas now, Secretary of State Hillary Clinton in Egypt today where she will become the first member of the Obama cabinet to meet with newly elected President Mohammed Morsi. Aides say Clinton will be speaking with Morsi about his priorities and how the U.S. can help.
And Clinton's visit could be overshadowed by a frightening incident in Egypt's Sinai Peninsula where two Americans have been kidnapped along with their guide. Officials say the three were taken from a tour bus.
Let's bring in Mohamed Fadel Fahmy. He's watching all of the developments for us from Cairo.
Mohammed, first, tell us, are the kidnappers making any threats or any demands?
MOHAMMED FADEL FAHMY, CNN INTERNATIONAL CORRESPONDENT: Yes. The kidnappers are demanding the release of their uncle, who was detained on drug charges. They were on a local Egyptian channel last night saying that the hostages are their guests. They have offered them tea and food and basically saying that the hostages are OK. However, this time around, the kidnappers are saying they will kidnap more tourists if the government does not release their uncle. Of course we know there have been two incidents similar to this kidnap in February and May. Two American tourists were kidnapped and they were released by the end of the day. But it seems that this time the kidnappers are much more serious about the release of their relatives.
KAYE: Can you tell us anymore about who these Americans are, where they are from?
FAHMY: Yeah, they are Boston natives Michael Luis, a 61-year-old pastor from Massachusetts and the woman accompanying him and their translator. They arrived Sinai two days before they were abducted. It seems that the U.S. embassy has been in contact with the authorities and they are trying their best to reach some sort of negotiation efforts to release them. I've spoken to the head of security in Sinai and he's also trying his best to reach some sort of agreement for their release. Randi.
KAYE: I'm curious about how the local media there in Egypt is treating this story.
FAHMY: Well, it has taken a lot of coverage, especially since Hillary Clinton is in town. This has directed the spotlight on the kidnap situation. The local media has been able to reach the kidnappers. It seems that the kidnappers are using the media in Egypt to release their message that they will kidnap more people and of course, Sinai has become in a state of lawlessness since the uprising that toppled Hosni Mubarak. The state security system has been disbanded, so there's been a lot of kidnapping, smuggling of drugs and weapons across the border to Israel. There has been a lot of lawlessness that has caused this. Randi.
KAYE: Mohamed Fadel Fahmy. Thank you very much for your reporting this morning.
Forget the days of Mexican drug cartels smuggling sacks through the sewer to get to the U.S. American officials have found one of the most sophisticated drug tunnels ever. If you're claustrophobic, beware. We're taking you deep inside this one.
(COMMERCIAL BREAK)
KAYE: Checking stories cross country.
First to Mississippi where a Federal judge is allowing the state's anti-abortion law to go into effect. But Mississippi's only abortion clinic will be allowed to stay open without facing punishment. The judge's ruling essentially gives the clinic time to comply with the state's new law which requires doctors to be certified OB/GYNs with privileges at local hospitals. The ruling is seen as a win really, for both sides.
In Oregon, a mother of two is selling her home after her husband cheated on her. Look at the for sale sign that Elle Zober put in the yard. It reads: Husband left us for a 22-year-old. House for sale by scorned, slightly bitter, newly single owner.
(BEGIN VIDEO CLIP)
ELIE ZOBER, DIVORCEE: I'm certainly not the first person to be cheated on. I won't be the last. So a lot of people relate. A lot of people see the sign and, you know, a lot of women say things like, oh, I wish I had done that or, um, I'd do worse.
(END VIDEO CLIP)
KAYE: The couple divorced after 10 years of marriage. Her husband, it turns out, actually helped make the sign. They are hoping it will give them an edge in a competitive housing market.
In Texas, tattoos like these are the reason U.S. State Department is denying immigrants visas. Officials say the body art can be a red flag for someone who might be involved in gang activity. An attorney practicing immigration law says that he sees lots of cases like this.
(BEGIN VIDEO CLIP)
LANCE CURTRIGHT, ATTORNEY: Our clients adamantly deny any gang affiliation. The tattoo is just a way to express themselves. The council, nevertheless, holding the case up while they investigate.
(END VIDEO CLIP)
KAYE: Some experts say even though tattoos may be used by gangs, a lot of non-gang members have them as well.
Now to Arizona where Federal drug agents were shocked to find one of the most sophisticated drug smuggling tunnels ever. It is longer than two football fields connecting Mexico to Arizona.
CNN's Casey Wian and his cameraman went inside to give you an up close look.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): This is the way agents first discovered this tunnel a few days ago under this giant container of water. Over here you can still see 55-gallon drums that contain the dirt that was dug out of this tunnel stretching 240 yards across the U.S.-Mexico border.
DOUGLAS COLEMAN, DEA SPECIAL AGENT IN CHARGE: This is the most sophisticated one I've ever seen in Arizona.
WIAN: What makes it that?
COLEMAN: Because of the way that it's designed. Most of the tunnels we have in Arizona, those are just digging through dirt to get into the sewer system, using the sewer system and then punching out again. This one, when you look down that hole, you're going to see, it is completely 4 by 6 all the way, plywood all the way around it, rebar, reinforced.
WIAN: The tunnel is so narrow and so deep, CNN photojournalist John (INAUDIBLE) and his camera needed to descend separately each with the help of a harness. There's actually no dirt in here. It's very clean. There's light. There's electricity and there's a fan even.
U.S. authorities have found 156 cross-border tunnels since the early 1990s. Lately they have become more sophisticated as drug detection technology aboveground improves. Agents had this area under surveillance since January.
The way the tunnel was actually discovered, Arizona public safety officers pulled over a pickup truck on the highway north of here, discovered 39 pounds of methamphetamine. After interviewing the occupants of the truck, they linked it to this facility. They now have three suspects in custody.
Casey Wian, CNN, San Luis, Arizona.
(END VIDEOTAPE)
KAYE: Getting a handle on the crime wave in New York. A plan of attack could involve more police. It's part of our focus this morning on violent crime in your neighborhoods.
(COMMERCIAL BREAK)
KAYE: Good morning, everyone. Welcome back to CNN SATURDAY MORNING. I'm Randi Kaye. This morning we have been focusing on crime in America and violent crime trends. The murder rate in Chicago so far this year is up by a shocking 38 percent. But that is a special case. In New York, it's actually down 17 percent. But we don't just want to focus on the numbers. We're also talking about solutions this morning.
Joining me now is New York City Councilman Peter Mallone, chairman of the council's public safety commission.
Murder is down, but you say overall crime is up in your city. How bad is it?
PETER MALLONE, NEW YORK CITY COUNCILMAN: The first time in 20 years that crime is up in every borough in New York City. We've led the nation in decreasing crime and now you're seeing it go the other way and it's very scary.
There's two reasons for that. It's happening throughout the country. You're seeing less cops and more criminals. The reason we have less cops, number one, the economy. Our cities are making tough economic choices largely due to mandates imposed on them by states and Federal governments. And the cops become a victim of their own success. Cities are saying, hey, look at the way crime has come down over the last 20 years, sometimes 75 percent in New York City. Maybe we don't need this many cops.
The cops on the street we have are facing more criminals because of the nationwide idea that the tough choices, the tough decisions, the controversial policies don't have to be made anymore because we've done that. We've been successful and now we can step away. When you combine less cops and more criminals, you're going to have increasing crime. We've seen that throughout the country.
KAYE: Is it the shortage of police officers? Is that the number one reason you think for the spike?
MALLONE: I think so. We are seeing since September 11th, we had 41,000 cops in 2001. Now we have under 35,000 cops, at least 1,000 of those are dealing with anti-terror. When you have those cops dealing with the same criminals being released because judges have the attitude that we don't need long sentences anymore because tough laws like the Rockefeller drug laws here in New York City and New York state are gone (ph). When the cops have to deal with the same criminals over and over again, we just don't have those cops because of tough economic decisions, you got a problem.
KAYE: Is there an easy fix? Is it just as easy as hiring more police officers?
MALLONE: No, no. That's the one thing municipalities can control right now. The other things are going to take a while. It's a national attitude that needs to change. What municipalities can do is continue to make those tough choices when aggressive police tactics like stop and frisk or attack, because we no longer need them.
But we do. We do. You need to make those tough choices. They are tough choices for a reason but they work. Over the last 20 years, we've brought crime down as I said 75 percent in New York City. From 1991 to 2001, under my father's safe streets, safe city program, we increased the police force from 31,000 to 41,000. That was the catalyst that turned the city around. Now, like I said, 41,000 back to 35,000, it's being replicated throughout the country.
KAYE: What about the criminals themselves? Do you think that they are bolder than they ever used to be? Are you seeing a change in what they are doing?
MALLONE: We just had a three-year-old shot in a sprinkler here in New York City. Unfortunately we see those type of shootings happening throughout the country. Criminals understand now, it takes a while sometimes to sink in, that if we are not seeing the beat cop anymore or the bike cop anymore, they aren't seeing those cops either. And they also know that with tough drug laws gone, dealers are coming right back on the street. They are seeing their friends arrested be back on the street the next day. They become emboldened, absolutely.
KAYE: They certainly know an opportunity as they look at it. Councilman, thank you very much for your time. Appreciate it.
MALLONE: Thank you.
KAYE: And next hour, we'll take you to Philadelphia. They are also seeing a drop in the murder rate. How are they doing it? Stay with us.
Some cities think the 911 emergency call system is out of date and they have changed it up. We'll tell you how a new personalized 911 call could save more lives.
(COMMERCIAL BREAK)
KAYE: Well, we all know to call 911 in an emergency. It's a time- tested system. But now some places are actually trying a new kind of 911, one that could help first responders by giving them more critical information before they even get to your door.
Mario Armstrong, HLN's digital lifestyle expert joining me now from Baltimore to talk about it.
MARIO ARMSTRONG, CNN DIGITAL LIFESTYLE EXPERT: Programming, am I supposed to hear programming?
KAYE: Mario, do you hear me? All right. Mario is not hearing me very well.
ARMSTRONG: I don't hear air, I just hear you right now. Don't hear air.
KAYE: We're going to get that fixed. It is live TV, folks. We're going to work on that, get that fixed and we'll get back to Mario. Of course you can join us here. Keep it here. We'll take a quick break. We'll get that fixed. We'll be right back.
(COMMERCIAL BREAK)
KAYE: Welcome back. I'm Randi Kaye. Thanks for starting your day with us. Just when you thought it was safe to go back in the water not one but two sharks stole the catch of the day. Both fish tales were caught on camera. Here is Jeanne Moos.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice-over): This is the tale of two fish stories, one on the deck in South Carolina Tuesday, the other in a boat in Australia last year. In both cases, a person fishing hooks a fish only to have a shark snatch it. South Carolina, Australia. Now, both parties took the name of the lord in vein. That's where the similarity ends.
UNIDENTIFIED FEMALE: It's a shark, a shark. It's a big shark.
UNIDENTIFIED MALE: That's pretty cool. She doesn't like sharks. What a dirty scum. He's gone.
MOOS: Sarah Brain (ph) had never before caught a fish let alone encountered a shark.
UNIDENTIFIED FEMALE: I was actually kind of scared. I seen it jump. I was like, oh, my gosh, it could jump up here and get me.
MOOS: When you combine the ballistic Americans with the chilling Australians, you get the catch of the day, holy bloody shark. Last year Australia's nine network morning show sent a reporter to fish for a shark supposedly sighted in a lake.
UNIDENTIFIED MALE: I'm going to give you one chance to catch this shark.
MOOS: His cast was impressive but his catch missed the mark.
UNIDENTIFIED MALE: Oh, no. Stop now, stop now. That's enough. Peking duck anyone.
MOOS: At least the duck was fine unlike the mackerel that failed to jump the shark.
The one place you'll never catch a shark is in the New York City subway, right? Maybe you couldn't catch one but you could buy one. The website Gothamist obtained photos of a guy selling a live baby shark aboard a J train at 1:00 in the morning. He wanted $100 for the little shark he said he caught at Coney Island after it bit him on the butt.
But seriously, folks, your chances are way better of hooking a bud than hooking jaws and grabbing a brew sure beats being shark stew.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
KAYE: From deep water to hot water, for one high-profile family. One of the nation's most famous political families back in the headlines this morning.
New York state police say Carrie Kennedy, daughter of Robert F. Kennedy was under the influence of drugs during a hit-and-run incident. She was found behind the wheel of her vehicle after 911 calls reported the SUV operating in an erratic manner just before colliding with a tractor-trailer. But a spokesman for Kennedy denied the charges, saying several tests showed his client had no drugs or alcohol in her system. She's scheduled to appear in court on Tuesday.
President Obama's reelection campaign is dealing with tragedy within its ranks. According to the "Chicago Sun-Times," 29-year-old Alex Okrent died Friday after collapsing in the Chicago headquarters. President Obama called Okrent's family to offer his condolences. Okrent's mom spoke about her son's passion.
(BEGIN VIDEO CLIP)
LYNN POLLACK, ALEX OKRENT'S MOTHER: He was very serious about what he believed and what he didn't believe. He had such passion for the work that he did. President Obama said that he couldn't know how horrible we were feeling and as a father of children, he couldn't imagine what this loss must be like.
(END VIDEO CLIP)
KAYE: Okrent had previously worked on several of Obama's campaigns and was recently working in the campaign's ad department.
The latest presidential campaign clash involves Mitt Romney's time as leader of Bain Capital. Romney said that he left the investment firm in 1999, but two news reports found SEC filings naming him as Bain's top officer after that year. The president's deputy campaign manager said the difference could be criminal.
(BEGIN VIDEO CLIP)
STEPHANIE CUTTER (via telephone): Either Mitt Romney, through his own work and his own signature was misrepresenting his position at Bain to the SEC, which is a felony or he was misrepresenting his position at Bain to the American people to avoid responsibility for some of the consequences of his investments.
(END VIDEO CLIP)
KAYE: Romney's campaign manager says the president needs to apologize for his staff's behavior. Romney himself told CNN's Jim Acosta the move is beneath the president.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: One of their insiders said that their campaign was going to be based upon the strategy of, quote, kill Romney, end of quote. That's what they are doing. It's disgusting. It's demeaning. It's something which I think the president should take responsibility for and stop.
(END VIDEO CLIP)
KAYE: Joining me now is CNN political editor Paul Steinhauser. Paul, good morning.
PAUL STEINHAUSER, CNN POLITICAL EDITOR: Good morning, Randi.
KAYE: Why does it matter if Mitt Romney worked at Bain Capital after 1999? Is this about the company and the job losses?
STEINHAUSER: It sure is. It sounds trivial. It's actually extremely important. There's a lot on the line for both campaigns as to when he actually left. Listen, for over two months now the Obama campaign has been going up with campaign ads, the president himself and Joe Biden have also been speaking out against Romney saying that when he was at Bain Capital, Bain Capital took over a lot of companies, put some out of business and a lot of jobs were sent overseas, that Mitt Romney was an outsourcer.
Randi, a lot of this happened between 1999 and 2002. If Mitt Romney was no longer at Bain Capital, if he was running the Olympic games and had no connection whatsoever to Bain Capital, it really undercuts the president's campaign's argument against Mitt Romney.
The flip side is that if Mitt Romney really was yes there from '99 to '02 and even though he was running the Olympic Games in Salt Lake if he did have an active hand in what was going on at Bain Capital, then it you know, of course, it -- it beefs up the President's argument and in a way it makes it looks like Mitt Romney is not being true, not being accurate about when he left -- Randi.
KAYE: Right. But certainly Mitt Romney is still insisting that he stopped working at Bain in 1999. Listen to just a bit of his interview with Jim Acosta.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Every independent fact checker that's looked at this in-depth not just taken a quick interview but look at it in great depth has said that the President's claims are false, misleading, wrong-headed; it got multiple Pinocchios from one reviewer.
Look what he is doing is doing everything in his power to try and divert attention from the fact that his policies have failed the American people.
(END VIDEO CLIP)
KAYE: So Paul, I mean when will we know the truth? What really happened here, how much involvement he really has?
STEINHAUSER: You know the answer here unfortunately is we may never know. Mitt Romney in that interview with Jim Acosta yesterday five times in that interview he said I left Bain Capital in 1999 when I took over the Olympics. He did a round robin of interviews yesterday Randi with four other networks as well and said the same thing in those interviews. So Mitt Romney is standing by his guns that in '99 -- in February of '99 when he went to run the Olympics Games in Salt Lake City his involvement basically with Bain Capital ended.
Now the Obama campaign they are sticking by their guns as well saying that these financial documents, the SEC documents you mentioned, and some others indicate that Romney did continue to have activity with Bain Capital afterwards.
Neither campaign stepping down and this goes -- you know, again, it's all about outsourcing, it's about jobs, the economy, the crucial issue with Americans. That's why so much is riding on the line here Randi. But again, we may never know.
KAYE: Yes well, at least we're getting back to the economy discussion even if nobody can agree on it, right?
STEINHAUSER: It seems that, yes.
KAYE: Let's move on here to the veep stakes, former Secretary of State Condoleezza Rice being floated again once again as the choice for Romney's vice presidential candidate. Could she be a real pick for him here? I mean, is this possible?
STEINHAUSER: You know that headline by -- that screaming headline by the Drudge Report, which is very popular and very influential among conservatives that came out Thursday.
And yes since then we've been talking about Condoleezza Rice again. Her name has been out there for quite some time in media accounts as somebody -- Mitt Romney may be considering as his running mate.
And listen there is a lot of reasons that make her look extremely attractive. She's African-American, she's a woman, she had some high, high profile jobs right here in this town as Secretary of State and before that as national security advisor for former President George W. Bush.
But the flip side, the reality check here I guess is when it comes to two crucial issues, abortion and illegal immigration she does not see eye to eye with Mitt Romney and that can be very upsetting to a lot of social conservatives and other conservatives.
And Randi, she herself in many interviews, some on CNN, some on others said, no, this is not going to happen. What it did do, though, Randi for a little bit at least it took the attention away from Bain Capital and over to this. So maybe in a way it helped the Romney campaign.
KAYE: Yes certainly it could be -- it could be a big help. Paul Steinhauser nice to see you on this Saturday morning -- thank you.
STEINHAUSER: Thank you.
KAYE: Some cities think the 911 emergency call system is out of date. And they have changed it. How a new personalized 911 call could save more lives.
But first, have you ever dreamed of visiting Paris, the food, the shopping, the sightseeing? Well, for today's travel insider, Alina Cho shows us her favorite spots that the City of Lights has to offer.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT (voice-over): I lived in Paris during college so going back always brings back memories. One of my favorite things to do then and now, sit outside and sip espresso or a glass of wine at a cafe.
The French invented the concept. Cafe De Flore on the left bank is my pick. And for dinner, Brasserie Lipp across the street from Flore is also great. If you've never been to Paris, take an afternoon on a sunny day and ride the Bateaux-Mouches. These large sightseeing boats are open air and allow you to see the entire city by sea.
For the arts -- L'Orangerie Museum which houses spectacular murals by Monet; for shopping, head to Avenue Montaigne, the Madison Avenue of Paris. Then grab your walking shoes and head to the Champs-Elysees, walking all the way up to the Architre Olm (ph) and back down is a great way to work off a meal.
And speaking of food don't forget to buy a real baguette sandwich at a boulangerie or a crepe on the streets. Soon you'll feel like a native.
Alina Cho, CNN, Paris.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
KAYE: Welcome back. We all know to call 911 in an emergency, it is a time-tested system. But now some places are actually trying a new kind of 911, one that could help first responders by giving them even more critical information before they get to your door.
Mario Armstrong, HLN's digital lifestyle expert joining me from Baltimore to talk about this.
Mario, so what exactly is this Smart 911 System?
ARMSTRONG: So Randi, it's a different kind of system. It's a system -- a system that is supposed to complement the existing 911 system not replace it. The idea is that many people have these things, cell phones. And more and more people are not using or owning land line phones.
So what happens when you make a cell phone call to 911? Do they have your address? How long does it take them to triangulate and get that address? A Smart 911 system can not only give them a physical but also other personal information that you may want first responders to know.
KAYE: Some has said that you know this is kind of similar to social media. What do you think?
ARMSTRONG: Well, it is in a way because if you think about it, it can track certain things. So when you -- for example when you sign up for the Smart 911 System you create your own personal profile. In that profile you can create all types of information about you. Your medical condition, allergies you may have, disabilities, number of pets in the household.
So that way first responder, even a floor plan could be even sent. So that way first responders would know those other data. And in that sense it's kind of social in that not only are you sharing information but then other people could share that information with other first responder units. That information can help them when they're on the scene.
KAYE: I'm fascinated by the fact that you said it can even share a floor plan. Because those seconds, you know, they can be critical when these guys arrive at your house to try and save you. What was wrong though with the old system, or is this just better?
ARMSTRONG: Well, it's just that it's better. I mean, the old system, it's 40 years you know -- a 40-year-old system, so cell phones weren't pervasive like they are now. People weren't as probably willing to share the type of information that they are willing to share now.
And so you know it's a combination of just a lot of things and the evolution of technology. It's where the technology needs to go and the capabilities are there. Why aren't we using them? Why wouldn't we want to give as much information as possible so those milliseconds could actually save someone's life?
KAYE: And who is over to using this, what cities?
ARMSTRONG: Well it's a -- there's a lot. I was surprised when I was doing the research for this I thought D.C. was the first city because they just announced this week that they were launching it in Washington but there are over 300 communities that actually have the system.
And that's a different thing. Your community has to implement the plan. And then individuals then sign up for that plan. So you've got to go to Smart911.com to go and check it all out. You may already have this in your community and may not be aware. You can type in your zip code to see if it's in your area.
KAYE: All right, good to know about. Great information Mario, thank you.
ARMSTRONG: You're welcome, Randi, take care.
KAYE: You too.
And join us every Saturday at this time as Mario gives us the scoop on some of the latest technology.
KAYE: All right, now let's move onto legal news. And the big headline from this week a new 267 page report by the former FBI director is rocking Penn State to its core. Louis Freeh says top University officials and late coach Joe Paterno failed to protect young boys from sexual predator Jerry Sandusky in order to protect their football program.
(BEGIN VIDEO CLIP)
LOUIS FREEH, FORMER FBI DIRECTOR: Most saddening and sobering finding is the total disregard for the safety and welfare of Sandusky's child victims by the most senior leaders at Penn State. The most powerful men at Penn State failed to take any steps for 14 years to protect the children who Sandusky victimized.
(END VIDEO CLIP)
KAYE: CNN legal contributor Paul Callan joining me now this morning. So Paul, this is a scathing report. But is it just a report? Or I'm curious -- I mean can it be used as any sort of proof or evidence in court?
PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, it most definitely can. It's -- at least in the civil cases against the university and the individual administrators as well as Mr. Sandusky himself who may be sued.
This is sort of the functional equivalent of a confession in a criminal case. Because Louis Freeh and his group were hired as agents of the University, they have conducted an internal investigation. And this is sort of a public confession of wrongdoing by Penn State. So I think it most certainly will be used as evidence against the university in civil litigation.
KAYE: Could we actually see new charges do you think as a result of this or more charges?
CALLAN: Well, I suspect that prosecutors, both state and federal, worked in conjunction with Louis Freeh and were aware of most of the evidence involved. But this is such a clear road map. I mean it's -- it wouldn't surprise me Randi if we did see something new come out of it. I mean, there are possibilities here for conspiracy charges, civil rights charges, perjury charges.
It is a scathingly devastating, you know, account of aiding and abetting child molestation and abuse at one of America's largest universities.
KAYE: You know the report said that the four people at the top, you know they just completely -- had a complete disregard for these kids that were possibly at risk before they really knew they were at risk, including the one boy that they -- that the assistant coach had seen in the shower with Jerry Sandusky. They never even tracked that boy down to find out his name or speak to him, or interview him about what happened.
So what -- what can happen to say the former president Graham Spanier? I mean he's not facing any charges. So how much weight really does this carry? Also you have the administrator Gary Schultz, Tim Curley -- I mean they are only facing criminal perjury charges.
CALLAN: Well you know Randi I think you're focusing on something that really shook me when I read the report. I mean, here is a little boy who has been sexually molested. There are witnesses to it. Nobody tries to find out his identity. Nobody contacts his parents. How do we know if he's being molested by Sandusky again?
KAYE: It's outrageous.
CALLAN: It's just -- it's unbelievable and you know Freeh talks in -- part of the report about the Penn State culture, the Penn State way. And he actually makes recommendations that they should change the way they view things at Penn State. It's kind of like a -- you know there's this mind-set of protect the university, protect the football program.
Now getting back to the issue, could Spanier the former president of the university be indicted criminally? Certainly what he's accused of is reprehensible conduct in this report. But proving beyond a reasonable doubt of a crime I think will be very hard against him. There's no smoking gun evidence that he committed perjury or that he failed in reporting requirements or anything else.
So at least from what I've seen in this report, I doubt that he's going to face criminal charges. He'll be sued in civil cases but probably not indicted at least with what we have now.
KAYE: And just very quickly, what about the board and the school, I mean the board is 32 members. They admit fault, what could happen there?
CALLAN: Well mostly in cases like this, the university gets sued and the officers and directors get sued. You rarely see a case where the board of trustees gets sued. But Louis Freeh in this report -- Louis Freeh in this report indicts the board of trustees as well and says that they were responsible for failure -- and a failure to protect children who are molested.
And I think the thing that's most interesting to me is that the Governor of the State of Pennsylvania, not the present Governor but the Governor who was in place at the time these events occurred was a member of the board of trustees and he appointed other members of the board of trustees. So this is a huge political scandal that reaches to the highest levels of government in Pennsylvania.
KAYE: Paul Callan, I appreciate your insight, thank you.
CALLAN: Nice being with you, Randi.
KAYE: You as well.
All right, the Olympic dream realized, a new team heading to London soon. So what is it really like there? Well just a few feet away from me here in studio, we have two former Olympians to talk about all things Olympic.
We'll be right back.
(COMMERCIAL BREAK)
KAYE: Good morning, everyone. Welcome back to CNN SATURDAY MORNING.
The Olympics kick off in a few weeks and I'm thrilled to have two Olympic legends here with me in studio this morning. Joining me are Dominique Dawes and Jackie Joyner Kersee. Dominique was part of the 1996 U.S. gymnastics' Magnificent Seven winning gold here in Atlanta in 1996.
And, of course, Jackie a track and field super athlete. In the '80s and '90s, Jackie earned six medals, three of them gold, and she's still the world record holder for the decathlon.
All right. Good morning to both of you.
DOMINIQUE DAWES, OLYMPIC GOLD MEDALIST: Good morning.
JACKIE JOYNER KERSEE, OLYMPIC GOLD MEDALIST: Good morning.
KAYE: So great to have you here in studio. I want to talk about the Olympics and certainly a comment that is causing quite a bit of frenzy. I'm sure you're familiar with the U.S. Olympic soccer goalie Hope Solo and her interview with ESPN saying that the Olympic Village was basically a nonstop party.
Here is what she said. She says that athletes are extremists. And when they are training it's laser focus. When they go out for a drink it's 20 drinks. With a once in a lifetime experience you want to build memories whether it's sexual, partying or on the field.
First of all, Dominique, let me ask you first, are you surprised by her comments?
DAWES: Well, I will say that she's right that athletes are disciplined and we do have laser focus. Everything else I don't agree with because that was not my personal experience in 1992 when I stayed in the Olympic Village. My vivid memories were a swing on a swing set which is what I did and hanging out with Charles Barkley in the physical therapy lab because I was constantly in a lot of pain.
But athletes are disciplined. And I think it really does come down to self-control and a lot of athletes are there to get a job done. It's about winning medals and not about partying.
KAYE: Jackie, what do you think? I mean first of all of the comments but what was your experience?
JOYNER-KERSEE: Well, my experience, I agree with Dominique. I can honestly say as a laser-focused athlete myself, I never drank, I never sipped champagne, I never had alcohol. So when you go to the Olympic Village, most of the athletes are there to focus on a job, trying to get the job done. And the one thing that the USOC has done has put this ambassador program together where they talk to the athletes about the dos and don'ts; bringing in former Olympian to have them, they share their experiences.
But there are athletes there that lose focus. But for us it was always about I was trying to win a gold medal, a silver medal, a bronze medal and focusing on what I had to do to get the job done.
KAYE: Is she wrong, though? I mean even if you two obviously weren't involved in this type of behavior. But she's talking about open sex, sex wherever you might see it, in the grass, in between buildings, wherever it might be. Have you heard of anything like this? What kind of tone does that set for especially the young athletes?
JOYNER-KERSEE: It's unfortunate if that is happening. And I would hope and pray that it is not. I don't know. I can't talk about her experiences or what she has seen but I know when I was in the Olympic Village and when I was there, that wasn't going on.
It's almost like she's saying there's no supervision, like they're just running rampant. And that is -- I don't think that's the case because I really do think that this is a once in a lifetime opportunity. And most of these athletes are there to really make a dream come true because the Olympics don't come around every year.
KAYE: No.
JOYNER-KERSEE: And so if you're in the village having fun, doing those types of things, then you're there for the wrong reason. I can't condone what she's saying but I don't know because I wasn't there to witness it.
KAYE: Right.
Something else that rarely gets talked about that I want to ask you about this morning is what happens when the training and competing ends? What is an Olympian to do? Are there jobs? Is there a career after this?
DAWES: Well, I was actually a professional athlete in 1996, so I made a decent amount of money and went on tour shows and Broadway even with my Olympic teammates. And then in 2000 when I retired from the sport, it was a very difficult time because I was always seen as Dominique Dawes, the gymnast. And I really didn't know that I had a different identity.
And I took a great deal of time in prayer and also deep thought and I found out that my passion is empowering and inspiring people, primarily young people and also parents. I really do want to make an impact in people's lives. So I help people self-reflect.
That's why I speak out today on the importance of health, fitness and wellness, which is why I'm here this morning doing great work with the Boys and Girls Clubs of America, and a strong supporter of the triple- play program that's all about mind, body and soul; and helping young kids combat childhood obesity, get off the couch, get running, get moving --
KAYE: Right.
DAWES: and do something special with their lives.
KAYE: I want to talk more about that because I mean the two of you are still so fit. What a great role model for these kids. So we'll talk more about that. Jackie and Dominique are going to stick around with us for a little bit longer.
As we said, they are here in Atlanta to address childhood obesity, clearly a passion for both of them. We'll talk more in a few minutes.
But first "The Jetsons" cartoon showed us a future where robots helped us with household chores. But new technology might go beyond that helping us with much complicated procedures like heart surgery.
Holly Firfer has the story in this "Start Small, Think Big".
(BEGIN VIDEOTAPE)
HOLLY FIRFER, CNN CORRESPONDENT (voice-over): In the movie "Minority Report" robotic spiders are a tool for law enforcement. Here at Carnegie Mellon University, Professor Howie Choset and his students are working on a different kind of robotic tool, snakes.
(on camera): Do you love snakes and have a fascination with snakes?
HOWIE CHOSET, CARNEGIE MELLON UNIVERSITY: Actually, I don't like snakes. I'm afraid of snakes.
FIRFER: You're afraid of snakes?
CHOSET: Oh, yes. A lot of people are.
FIRFER (voice-over): But Professor Choset is putting his phobia aside. These snakes can be used for search and rescue operations like disasters, earthquakes, but it's their smallest creation that could have the biggest impact; a robotic snake that doctors are hoping to use for ear, nose, and throat surgery and eventually heart surgery saving patients from large incisions, scars and pain.
CHOSET: It was designed for minimally invasive surgery. This robot is 11 millimeters in diameter. We're constantly thinking how to make this robot smaller; you don't ever need large suites to do minimally invasive surgery.
FIRFER (on camera): So you're saying that a surgeon wouldn't necessarily have to be controlling this?
CHOSET: One of the benefits of this mechanism is that we can off load a lot of the burden from a surgeon onto a physician who doesn't have surgical training. With this surgical snake robot, you can make a small incision and deliver a whole host of therapies and diagnostics.
FIRFER: Professor Choset says it's been successfully used for epicardial mapping already three times already and gaining traction quickly.
Holly Firfer, CNN, Pittsburgh.
(COMMERCIAL BREAK)
KAYE: Welcome back.
Joining me are Olympic gold medalists and living legends Dominique Dawes and Jackie Joyner-Kersee.
All right. Since you are both big-time athletes, let's talk about what you're here for because I want to talk about obesity. Childhood obesity is obviously a passion for the two of you. You're talking to kids in Atlanta, sort of a makeshift Olympics, as you call it, Dominique.
Let's look at these numbers though from the CDC first. 12.5 million -- that's the number of kids ages 2 to 19 who are obese and that means 17 percent of the entire U.S. population of children is obese.
But the most alarming number really is this: 70, 70 percent of obese youth have had at least one risk factor for heart disease like high cholesterol and high blood pressure. That's incredible. These are just kids.
JOYNER-KERSEE: Yes. It's sad.
KAYE: First of all, Jackie, let me start with you. What is your reaction to these numbers?
JOYNER-KERSEE: It is unbelievable but that's why it's great to have a partnership with the Boys and Girls Club and the WellPoint Foundation, being a part of making this wellness awareness, educating, getting young people out, getting them active because we know throughout schools with funding being cut, physical education, there's a lot of schools that don't have it anymore.
But the Triple Play that we're part of today -- mind, body and soul -- I think it's a great start to really getting young people and just getting people up and moving.
KAYE: Yes.
But Dominique, what do you say to the kids because you know kids these days. They are attached to their cell phones, their computers. They don't want to be dragged outside to do something physical. Not like the other -- you know, they don't even know what that's like.
So how do you motivate them to get them away from that stuff?
DAWES: Well, I think the best way to motivate a kid is to implant a dream in their mind. I think when I was a young child and I dreamed of going to the Olympics at 11, there was nothing that was going to get in my way of accomplishing that dream. I was going to work hard -- blood, sweat, tears. And I was going to make it happen with the right people around me. And I think that's exactly what the Triple Play program is all about sponsored by Coca-Cola and the WellPoint Foundation. It's all about helping kids see something bright for their future. And then they are going to want to take care of their body. They're going to want to get out there and be physically active and have fun. They're going to care about what they put in their body because they are going to recognize that their fuel that they put in their body is going to either help them succeed or not.
KAYE: Yes.
DAWES: And so that's why Jackie and I are excited to be here today, Evander Holyfield --
JOYNER-KERSEE: Yes.
DAWES: The kids are going to be (inaudible) with me.
(CROSSTALK)
KAYE: I'm feeling (inaudible) already because I'll tell I've seen the two of these ladies here stretching out in the studio and that frightened me. I can't imagine what these kids are up to.
DAWES: Yes. It's going to be fun. And I'm sure a couple of kids are going to do some forward rolls. And I'll give them all perfect tens.
KAYE: They're going to be very sore tomorrow, I'm sure.
(CROSSTALK)
KAYE: All right. It's so great to have you here, both of you. And thank you so much for what you're doing for these kids. I think it's great.
DAWES: You're welcome, thank you.
JOYNER-KERSEE: Thank you.
KAYE: Thanks for starting your day with us. CNN SATURDAY MORNING continues right after this.
(COMMERCIAL BREAK)
