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CNN Saturday Morning News

Rebels: Trying to Get V.P. to Jordan; Tax Attacks and the 2012 Campaign; White Supremacy in the Military; History of the Economic Crisis

Aired August 18, 2012 - 07:00   ET

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

RANDI KAYE, CNN ANCHOR: Good morning, everyone. I'm Randi Kaye. It is 7:00 a.m. on the East Coast, 4:00 a.m. out west. Thanks for waking up with us.

We begin with a huge blow for the Syrian regime in the middle of the country's civil war. There are conflicting reports about whether Syria's vice president has actually defected. A spokesman for the rebel Free Syrian Army says Vice President Farouk al-Sharaa a has left the regime and that the opposition is trying to get him to neighboring Jordan.

But according to Syrian state TV, the vice president's office has issued a statement saying he didn't think for one second to leave the homeland. And rebels say they are worried he may have been forced to surrender.

We'll have a live report on this breaking story just minutes away.

Turning now to U.S. politics and the race for the White House. We are getting a first look at Paul Ryan's finances, now that the Republican vice presidential candidate has released his tax returns. In 2011, Ryan and his wife reported a total income of just over $323,000. Of that, the Ryans paid almost $65,000 in taxes. That amounts to an effective tax rate of 20 percent.

And that 20 percent that Ryan paid -- well, that is a higher tax rate than what presidential hopeful Mitt Romney says he paid over the same two years.

For his part, Romney continues to resist calls to open up more of his books. That's leading the Obama team to ramp up the pressure.

White House correspondent Dan Lothian is following that for us.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Randi, Democrats say they want to know more about Romney's personal finances. They have been hitting him on news shows and in political ads. Now, the Obama campaign says they'll stop asking questions if he releases three more years of tax returns.

(voice-over): It's the political version of let's make a deal. If Mitt Romney releases more tax returns the Obama campaign promises to back off and stop running ads like this one.

NARRATOR: Did Romney pay 10 percent in taxes, 5 percent, zero? We don't know.

LOTHIAN: The offer came in a letter from Obama reelection campaign manager Jim Messina to Governor Mitt Romney's campaign manager Matt Rhoades. "Governor Romney apparently fears that the more he offers, the more our campaign will demand that he provide," the letter reads. "So, I'm prepared to provide assurances on that point. If the governor will release five years in returns, I commit in turn that we will not criticize him for not releasing more."

Governor Romney has been under pressure from Democrats to be more transparent on his taxes after he insisted on releasing two years of returns. Even some Republicans have urged him to do more, to make this issue go away. But Mr. Romney counters that his personal taxes are not what voters care about.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Given the challenges America faces, 23 million people out of work, Iran about to become nuclear, one out of six Americans in poverty, the fascination with the taxes I pay I find to be very small minded.

LOTHIAN: He did reveal that he's paid no less than 13 percent of his income in taxes over the past decade. But even Ann Romney admits making more returns public is a bad political move.

ANN ROMNEY, MITT ROMNEY'S WIFE: The more we release, the more we get attacked.

LOTHIAN: Which brings us back to this offer, which was quickly dismissed in a letter from Governor Romney's campaign manager, who wrote, it's clear that President Obama wants nothing more than to talk about Governor Romney's tax returns, instead of the issues that matter to voters. He signs off with, "See you in Denver," the site of the first presidential debate.

Principal Deputy White House Spokesman Josh Earnest was asked to defend this ongoing line of attack.

JOSH EARNEST, DEPUTY WHITE HOUSE SPOKESMAN: The fact is, Governor Romney has it within his capacity to put the questions to rest by the end of the day today. I do anticipate -- I do think that the voters do have an expectation about transparency that is -- that is important.

LOTHIAN (on camera): Republicans point out that here you have the White House talking about transparency when they charge the White House has not been transparent about issues such as Fast and Furious, employees using personal e-mail accounts for official business. And they say, you won't find a poll out there that shows Americans care more about this than they do about jobs and the overall economy -- Randi.

(END VIDEOTAPE)

KAYE: Dan Lothian, thank you very much. New this morning, health officials are warning people to throw out any cantaloupe from southwest Indiana because of a salmonella outbreak. At least two people are dead, 141 people sickened from the tainted fruit. This is affecting 20 states seen highlights here on your screen. There you go.

The outbreak began in July. Health officials are warning people, don't try to wash the fruit because both the outside and the inside could actually be infected. Just last year, 29 people died from a listeria outbreak in cantaloupe.

Now to Colorado where a 29-year-old hiker is expected to face animal cruelty charges after leaving his German shepherd on a snow capped mountain. Anthony Ortolani says he left the dog after a storm rolled in and he was worried about his safety and the dog's feet were injured. A group of volunteer hikers went back up the mountain and rescued the dogs later. Investigators say Ortolani didn't make an attempt to go back and get the dog and assumed it was dead.

We've got a lot more ahead this hour. Take a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Rich folks don't need governments. Rich people take care of themselves.

KAYE (voice-over): A new documentary sheds light on a financial crisis. The producer of "Heist" joins me to explain the one document she says started it all.

Neo-Nazis, white supremacists, the KKK. These groups aren't dying out. They are growing. All morning, we are putting hate in the USA in focus.

And later, Whitney Houston's "Sparkle" is out in theaters. But it's bittersweet celebration.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

KAYE: More now on a breaking story we are following this morning.

Syrian rebels claim they are trying to get the vice president to a safe house in neighboring Jordan. A spokesman for the rebel army says Vice President Farouk al-Sharaa a has left the regime. But he tells CNN he fears the government may have intercepted al-Sharaa a 's family, forcing him to surrender.

Adding to the confusion, Syrian state TV reporting that the vice president office has issued a statement denying al-Sharaa a ever intended to leave Syria. We'll continue to follow this breaking story and have a live report in just minutes. The man accused of shooting a building manager at the Family Research Council in Washington will not be released on bond. Instead, he'll be given a mental health evaluation.

But there's an interesting debate going on right now, who is to blame for Wednesday's shooting?

Here is what the head of the Family Research Council Tony Perkins said.

(BEGIN VIDEO CLIP)

TONY PERKINS, PRESIDENT, FAMILY RESEARCH COUNCIL: Corkins was given a license to shoot an unarmed man by organizations like the Southern Poverty Law Center that have been reckless in labeling organizations hate groups because they disagree with them on public policy.

(END VIDEO CLIP)

KAYE: The Southern Poverty Law Center calls Perkin's accusation outrageous. The group released a statement saying this, in part, "The SPLC has listed the FRC as a hate group since 2010 because it has knowingly spread false and denigrating propaganda about lesbian, gay, and bisexual people, not as some claimed because it opposes same-sex marriage."

The attack at the Family Research Council wasn't just a random act of violence. You'll recall two weeks ago, a lone gunman went on a shooting spree at a Sheik temple in Wisconsin, killing six. We later learned that gunman, Army veteran Wade Michael Page, was a white supremacist.

Statistics show hate groups are on the rise in this country. The Southern Poverty Law Center counted more than 1,000 known hate groups operating in the U.S. last year. And the FBI reported nearly 7,000 hate crimes.

Just take a look at this chart here. It shows what we're talking about. Hate groups in America in the last decade. It's certainly a disturbing trend when you look at that, which is why we're putting hate in the USA in focus this morning.

This hour, we want to discuss the presence of white supremacy groups on our military bases. Some say it's more prominent than you might think.

Our Pentagon correspondent Chris Lawrence explains.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, Randi, the military has strict rules saying troops cannot be a member of a white power group or have any sort of racist tattoos on their body. But there are a small number of believers in the ranks. And they are everywhere from boot camp all the way up to Special Operations forces. (voice-over): Wade Michael Page's belief in white power was tattooed all over his body as his MySpace photo shows. But back at Fort Bragg, you couldn't tell by looking at him.

CHRISTOPHER ROBILLARD, FORMER SOLDIER: He didn't have the tattoos when he was in the Army.

LAWRENCE: But fellow soldier and friend, Chris Robillard, says Page wasn't shy about sharing his views and ranted against non-white people.

ROBILLARD: He would often mention the racial holy war that was coming.

LAWRENCE: A criminologist who interviewed Page said he started identifying with the neo-Nazi movement while he was in the Army, because he thought African-American soldiers got preferential treatment.

PETE SIMI, CRIMINOLOGIST: Specifically what he told me at one point was that if you join the military and you're not a racist, then you certainly will be by the time you leave.

LAWRENCE: Well before pictures like this were posted on Facebook, the FBI had identified hundreds of veterans involved in white supremacist incidents. And federal investigators say small numbers of white supremacist have infiltrated most parts of the military.

While Page was at Fort Bragg in 1995, three soldiers were caught and convicted of murdering a black couple outside the base -- all were identified as neo-Nazi skinheads.

The Army cracked down on racists in the ranks and kicked out dozens of soldiers. But the problem goes way beyond one base.

T.J. LEYDEN, FORMER MARINE AND SKINHEAD: Every major military installation, you'll have at least two or three active neo-Nazi organizations actively trying to recruit on-duty personnel.

LAWRENCE: T.J. Leyden would know. He's a former Marine and skinhead who says some military units ignore overt racism.

LEYDEN: I used to hang a swastika flag in my wall locker. And everybody in my unit all the way up to my commander knew it. The only time they ever asked me to take it down was when the commanding general would come through, just so they wouldn't get in trouble.

LAWRENCE (on camera): Now, that's not to say that's the case across the board. Even Leyden told us that in his brother's unit, his brother's commander took an extremely hard line on white power and any sort of racist propaganda and would crack down on it almost immediately.

So, the military has strict rules in this regard. But sometimes it comes down to how much the individual commander is going to enforce them -- Randi.

(END VIDEOTAPE)

KAYE: Chris Lawrence, thank you for that report.

And as Chris mentioned, the Pentagon has a zero tolerance policy for racist hate groups or members. But as you saw there, that doesn't mean individuals are slipping in. So, should the military do more to prevent this?

Joining me now: CNN contributor and retired general, James "Spider" Marks.

Thanks for being here, General.

So, an Army spokesman admitted to CNN there are concerns about extremists in the ranks. He added this, "However the numbers indicate it is an extremely small percentage of soldiers associated with felony level criminal misconduct linked to gang or hate group-type crimes."

Felony level or not, how widespread is the white power movement within the military as a whole? I mean, do we know?

JAMES "SPIDER" MARKS, CNN CONTRIBUTOR: Randi, this is truly aberrant behavior. It is outside the norms that the military accepts. And can individuals hold these ideas? Can they try to practice according to what their bizarre or distorted view of the world is? Yes, they sure can. But it goes back to one very fundamental point and that is, what do leaders do about it when they observe and can they observe this behavior?

Chris made a very good point, that if the individual commander or the individual leader does something about it, you're going to correct the problem. My view of that and all military leaders view of this is that is the fundamental responsibility of the leader. It's not optional to exercise your control and discipline within the ranks, to ensure that regulations and the consideration of others are foremost in terms of the development of the soldiers.

From day one, Randi, soldiers all members of the military are trained to respect others, consider others, to practice their craft in a self- less way. It's absolutely antithetical to anything that supremacist or extremist groups would try to purport.

KAYE: All right. So, walk us through the process, then, of recruitment. What are the guidelines and steps? I mean, how could someone like Wade Michael Page slip through?

MARKS: Well, keep it in context as well. He joined the military in the early '90s. The access of information, the ability to Google, to get online and have an immediate portrayal of data, a retrieval of information about an individual was very difficult to do and had to be done in a rather gum shoe kind of a way, very analog. But it still could be done and it was done.

And you have, at a minimal step, is a national agency check. And what that means is they check with the FBI to see if there's an indicator or there's been some problem in his past. And also, you have the IRS, to see if this guy is above board and is doing what he needs to do as a citizen.

Then, and when the individual walks into the recruiting station, this is the point of sale. This is where the interaction occurs. If the guy has tattoos, you get an opportunity to review those, to look at those tattoos and you bring an expert in to see what they mean. I may look at a tattoo and have no clue what it says.

KAYE: Right.

MARKS: I'd bring an expert in and say, yes, body art, this is a bad thing that you're looking for.

KAYE: It could be telling. We heard in Chris Lawrence's report that it's not unheard of for some soldiers or Marines to hang swastika flags on their lockers or even in the barracks. That is up to individual commanders to monitor.

But I guess the question is, general, why isn't there a top down policy banning this type of behavior?

MARKS: It is banned. What you heard, that was, again, that was totally aberrant behavior. The fact that Marine said everybody in his command accept the portrayal of the hanging of that Nazi swastika flag in his locker is totally unacceptable and I'd even challenge that young man to say, is that a truthful representation of what occurred?

That doesn't occur. When you see that stuff in the barracks, when you see the body art, it's a flag of indicator of behavior, you remove the individual and you start going after it very quickly. You take it down immediately.

That's what leaders do. That's what commanders do.

KAYE: General Spider Marks, as always, thank you very much.

MARKS: Thank you, Randi.

KAYE: And coming up in the next hour, meet a man who lived a life of hate as a white supremacist for years but turned his life around. Find out what made him change his ways?

New video released of a man shot to death in a police car. The investigators hope to put to rest questions about whether it was suicide or homicide. You'll get a chance to weigh in, in just moments.

(COMMERCIAL BREAK)

KAYE: Now, the mystery surrounding a young man shot in the back of a police car in Jonesboro, Arkansas, while he was handcuffed. Twenty- one-year-old Chavis Carter died that night on July 29th. Police say it was suicide. Others aren't so sure.

Police have released this dash cam video from a police cruiser. You can see Carter, Chavis Carter, by the side of the pick-up truck. Two other men were also in that truck. Carter is patted down. The officer doesn't find a gun and Carter isn't handcuffed. He was led to squad car and police say he was put in the backseat, again, not handcuffed.

Here's another part of the video. They patted him down a second time after finding drugs in the truck. They put him back in the same squad car in the backseat, handcuffed this time.

(BEGIN VIDEO CLIP)

POLICE OFFICER ON SCENE: I patted him down, I don't know where it was hidden. We were talking about to get back into the car we thought we heard a finny noise. We heard a pop, we got in, smelled of gun powder, and he was leaned over.

QUESTIONING OFFICER: Was he handcuffed or sitting?

POLICE OFFICER ON SCENE: He was handcuffed behind him.

(END VIDEO CLIP)

KAYE: Carter's mom doesn't buy that her son shot himself. Police say it is possible.

Take a look at this re-enactment video done by the Jonesboro police department and released. You see, the officer pulling a gun out from behind him and putting it to his head, showing how it might have happened. Now police say they are waiting on a complete autopsy and forensics report while they work on the investigation.

So, you've seen the re-enactment. You've heard what the police say. But people in the community are very skeptical.

So, what do you think really happened the night Chavis Carter died? You can tweet me @RandiKayeCNN and we'll read your responses on air later this morning.

A battle is brewing over the future of Medicare. And Paul Ryan finds himself at the center of it all. How his budget proposal could shape the debate in the 2012 campaign.

(COMMERCIAL BREAK)

KAYE: The conversation is turning serious on the campaign trail where a battle over Medicare is brewing. Joining me now from Washington is CNNpolitics.com editor, Bryan Monroe.

Bryan, good morning.

Paul Ryan says, quote, "This is a debate we want to have. It is a debate we will win." Are Republicans trying to define this issue, do you think in the cuts in the program on their terms rather than let the Democrats do all the talking on this one?

BRYAN MONROE, CNNPOLITICS.COM EDITOR: Well, Randi, I think you are right. This has been certainly controversial from the time that Mitt Romney picked Paul Ryan. The Democrats have wanted to go after Ryan because he is the author of the Republican plan that would change dramatically, some people say, in Medicare as we know it. But what's happening lately is Romney has been on the attack saying that the Obama plan will cut $700 plus billion out of Medicare. But the Obama campaign is saying that's not true. It's not factual. In fact, if you look at the independent CBO, Congressional Budget Office, they say that budget what it really is they're actually reducing how much they're spending in outlying years, by reducing payments to doctors, to big pharmaceutical companies, to equipment manufacturers, reducing the cost of Medicare instead of taking money out and taking services out.

There's a big debate there.

KAYE: Yes, certainly.

The Obama team broke out its own a white board, along with an ad to rebut Romney's claims. Let's listen to that ad and then I want to get your response on the other side.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I'm Barack Obama and I approve this message.

NARRATOR: Now Romney is attacking the president on Medicare? The nonpartisan AARP says Obamacare cracks down on Medicare fraud, waste and abuse, and strengthens guaranteed benefits.

And the Ryan plan? AARP says it would underline Medicare and higher costs for seniors. An expert say Ryan's voucher plan could raise future retirees cost more than $6,000. Get the facts.

(END VIDEO CLIP)

KAYE: So, what do you say about that one?

MONROE: You know, they're going right them at hard. You know, and I think that's why you have Paul Ryan who's down in Florida today. He'll be in Orlando speaking in a few hours, trying to shore up support for his plan, and for the Romney plan on Medicare.

And his mother is going to tour around Florida with him. It's all to go after the older vote, and making sure that they don't feel they are going to be undercut and lose their benefits and services because, in fact, the Ryan plan only goes after those under 55, you know, you and me, Randi.

KAYE: Yes, exactly. Seniors are certainly paying close attention, though, to this one.

Bryan Monroe, editor for CNNPolitics.com -- nice to see you. Thank you.

MONROE: Thanks a lot.

KAYE: Has a member of the Syrian regime's inner circle fled the country? There are conflicting reports about the whereabouts of Syria's vice president. CNN's Nic Robertson joins us with a live report, straight ahead.

(COMMERCIAL BREAK)

KAYE: U.S. stocks ended higher Friday, capping a six straight week of gains. The mortgage rates have inched up just a bit. Take a look there.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

KAYE: Welcome back.

There are conflicting reports right now about whether one of the most powerful men in Syria has fled the regime. A spokesman for the rebel Free Syrian Army says they are trying to help Vice President Farouk al-Sharaa a cross the border into Jordan.

Let's get more from Nic Robertson.

What is the latest on the vice president's whereabouts?

NIC ROBERSTON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It's still not clear. The Free Syrian Army is saying that he left Damascus about a week ago, that they have been trying to get him across the border into Jordan. That's into south of Syria. That he wants to leave and they're trying to make that happen, as they did with the former prime minister just a few weeks ago.

But at the same time, you have government officials on the state news agency saying he has worked diligently for the government since the beginning of the crisis then he welcomes the U.N.'s new choice of envoy and he hopes that the envoy, Lakhdar Brahimi, get the sort of unified support from the U.N. Security Council.

So, you have on one hand, the Free Syrian Army saying he's on the way out. We are trying to get him out, but lost contact with the commanders doing it. On the other side, you got the government saying he's back at his job, because he's actually supporting these things that are happening.

KAYE: Yes. Al-Sharaa a , though, I mean, he's considered one of the last figures of the Syrian regime's old guard. I mean, he was a confidant of President Bashar al-Assad's father. So, I mean, if this is indeed true, I mean, how much of a blow would his defection be?

ROBERTSON: It would be a very, very big signal to Bashar al-Assad, whoever he thought was loyal around him who is not in the upper echelon of the security services is deserting him. The defection a couple weeks ago of the prime minister really sent a signal that it was possible for senior officials to get out of the country that the Free Syrian Army can help them.

Farouk al-Sharaa a has in position of vice president for about seven years. He was foreign minister for many, many years, prime minister before that, somebody very, very trusted by the regime, somebody who was even floated peace early this year as possibly to take over from Bashar al-Assad to negotiate with the opposition, sort of interim measure.

So, it damages any efforts along those lines, not that I think anyone had a lot of hope in them anymore. But, really for Bashar al-Assad, that is a critical message, his top guns are leaving him. Where else can he turn for support?

KAYE: Yes, it's going to be interesting to see exactly what the truth is here in this one. Nic Robertson, thank you very much.

My next guest says the cause of a financial meltdown can be traced back to a single memo where more than 40 years ago. She'll explain, next.

(COMMERCIAL BREAK)

KAYE: Good morning, Miami. Take a look there, beautiful sunny day, already. Nice shot of the water there. Glad you are waking up with us on this Saturday morning.

There's a new documentary that outlines what producers call the biggest heist of American history. What was stolen? Your money. Take a look.

(BEGIN VIDEO CLIP)

NARRATOR: Massive job losses, record home foreclosures, and devaluations. Lost retirement savings. The mess we are in today did not begin on Wall Street.

Long before the financial collapse, the dismantling of government regulation was well under way. Vast sums of wealth were already being channeled from the paychecks and bank accounts from every day taxpayers into the pockets of the super rich and corporate CEOs.

UNIDENTIFIED FEMALE: This has been the greatest wealth transfer in the history at least in the American kind, if not mankind.

UNIDENTIFIED MALE: This is class warfare.

UNIDENTIFIED MALE: I think it's scaring the hell out of everybody. I think everybody should be scared.

(END VIDEO CLIP)

KAYE: Frances Causey produced and directed the film, "Heist: Who Stole the American Dream?"

Francis, good morning. Thanks for joining us.

FRANCES CAUSEY, PRODUCER & DIRECTOR, "HEIST": It's great to be here.

KAYE: So, in this film, you outline the history of financial collapse in our country and you trace it back to that one memo written by the Chamber of Commerce back in 1971, the Powell memo. Tell me about that. CAUSEY: Well, the Powell memo was written by Justice Lewis Powell. He wrote it at the urging of his friend, Eugene Sydnor, at the U.S. Chamber of Commerce. The memo called for a big business kind of corporate makeover of government. He wrote in very strident terms. He really felt the memo was attack on American free enterprise.

And Powell really believed the system was under attack. So, he called upon corporate leaders to go to Washington, get out from behind their desks. You know, they were losing the battle, the public relations battle. So, they wanted control over media. They wanted, you know, business schools, you know, more business friendly. So, that's essentially what they did. They implemented friends of Powell and corporate leaders all across started implementing the memo.

KAYE: So, your documentary, it's a lot of issues that led to the state of our economy, from the rise of big businesses, to bailouts, killing regulations on banks. But after all your research, was there one event that put us over the edge, would you say?

CAUSEY: Well, I think, you know, what got us interested in the topic and taking a long form look at this, I think documentaries are positioned to be able to look at a topic like this, is we looked at the lobbying that did away with Glass-Steagall, which was the most successful and long-lived financial law ever created. It came out of the Great Depression. We began to understand more about the lobbying influence and as we studied Glassed-Steagall.

Keep in mind, Glass-Steagall protected both investors and consumers alike.

KAYE: And you also say, which I find interesting, though, the economy crash wasn't because the Democrats did this or the Republicans did that. You say it was a bipartisan event?

CAUSEY: Well, it really is. I think for Americans who sit at home and watch television and watch, you know, the political theater, it looks like there's opposing sides. In reality, the Democrats as one guest in our film, expert in our film says, you know, the Democrats started drinking the Kool-Aid, along with the Republicans.

So, you know, except on matter of tolerance and, although there may look like, there are big differences, there are actually very lock-in- step on economic matters.

KAYE: Let's me play another clip, then talk about it more.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Folks who are in charge of running the economy ran red light after red light after red light and caused car wreck after car wreck after car wreck, and no one held them accountable.

UNIDENTIFIED MALE: You would think Congress would say, who caused it? Who are we going to hold accountable? Are people going to jail? Where's the prosecution?

You would think that would happen, right? It hasn't happened.

SEN. DICK DURBIN (D), ILLINOIS: They banks are still the most powerful lobby on Capitol Hill and they frankly own the place.

(END VIDEO CLIP)

KAYE: You know, whenever I talk to anybody about the financial collapse, they say where is the accountability? No one is being held responsible. So, of big businesses and banked caused it, why isn't anybody in trouble?

CAUSEY: Well, I think it's actually, if you look at a 2005 Supreme Court decision, you -- there was a case the Justice Department won against Arthur Anderson, the accounting firm Arthur Anderson in the aftermath if you recall the Enron scandal.

And the Supreme Court overturned that decision. Basically, the government says to corporations, police yourself, which I think a lot of Americans find almost kind of comical.

KAYE: Yes.

CAUSEY: So, these guys kind of operate with not a lot of impunity. I think, maybe you know, you look at Jamie Dimon's kind of seeming arrogance. I really don't think they are threatened with any kind of punitive action.

KAYE: Certainly doesn't seem that way. Frances Causey, nice to have you on. Thank you.

CAUSEY: Thank you.

KAYE: A California coffee shop tells customers to bring back their dirty dishes, keep their voices down and not talk about, quote, "hipster" topics.

Comedian Bill Santiago will give us his take, which is always interesting on what exactly that means.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm often asked if I was granted a wish from a magic fairy, would I wish my biological legs back? Absolutely not. My limbs are part of my creation. They have become part of my identity. What's really fun is they are upgradeable. So, every few months I get a hardware and software upgrade. As my biological body ages, my artificial limbs get better and better. So, it's interesting I'm getting better and better, at least that part of my body, anyway.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

KAYE: Welcome back.

Just about ten minutes before the hour. You are looking at live pictures from the Villages, just north of Orlando, Florida. You can see folks there are getting ready for Paul Ryan to speak there at 10:00 a.m. Eastern. We'll bring it to you live.

They are getting the podium ready for him. It's interesting to look at the crowd, of course, because certainly seniors are going to want to hear what he has to say about the Ryan plan and what his plans are and Mitt Romney's plans are for Medicare. Take a look at the crowd and see what he has to say.

A U.S. Navy commander has been relieved his of duty after a woman accused him of faking his death to end an affair. Good morning.

Let me bring comedian, "Huffington Post" blogger Bill Santiago.

Bill, good morning.

BILL SANTIAGO, COMEDIAN: Good morning.

KAYE: Give us the details on this commander's story.

SANTIAGO: I'll give you a rough outline to my recollection. So, yes, there was this naval commander who started an affair with a 22-year- old girl online. Told her he was in special-ops, specializing in very poorly planned infidelity, because he got totally got busted. She meets him. They have this affair and he does finally reveal his real name.

He wants to end the affair. He does it by sending her this mysterious e-mail from some supposed third party saying it's a friend who was instructed to contact her in the event something really bad happened and her lover would not be able to make it back. You know, in other words, he had died, apparently.

KAYE: Yes.

SANTIAGO: So, she went crazy, tracked him down to his house, found out from the new owners of the house that, no, he was alive and well, had been transferred to command of a new submarine and moved to Connecticut. Of course, she goes ballistic. She goes on hunt for the caught red handed commander and the guy gets fired, I mean, for poor judgment.

I mean, you know, the whole idea of a submarine is to avoid detection. If you can't hide from a 23-year-old girl looking for closure, who's going to trust you with hiding a nuclear 6,000 ton submarine from the enemy?

KAYE: Yes, not very comforting.

SANTIAGO: That's where it stands right now. That's the upshot.

KAYE: All right. I also want to ask you about this story we've been looking at. This San Francisco Four Barrels Coffee Shop put up a poster of store rules. One of the rules is not talking about annoying hipster topics.

First of all, what do you think about this? What's your take on a hipster topic?

SANTIAGO: This list could go on forever. There are so many of them. First of all, you should not be allowed to talk about the need for gluten-free Pabst Blue Ribbon. You shouldn't say the phrase, "no worries."

I don't want speculation as to whether or not David Lynch (ph) peaked with eraser head. Your thought on Noam Chomsky's last tweet, and I absolutely do not want to hear anything about how well you're doing in teaching yourself the ukulele.

KAYE: OK.

SANTIAGO: That's I start. But I think that will do.

KAYE: That's a start. You keep working on that list, all right?

SANTIAGO: OK. All right.

KAYE: You can spend your Saturday on that. Bill Santiago --

SANTIAGO: I'll be on it.

KAYE: -- nice to see you. Bye, bye.

Six months after her death, Whitney Houston lives on and sparkles in her last big screen appearance.

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(BEGIN VIDEO CLIP)

WHITNEY HOUSTON: Made it very simple in this house. Respect, getting an education and having a relationship with the Lord. If you can't do that, then go.

(END VIDEO CLIP)

KAYE: Whitney Houston's final film is in theaters this week. A bitter sweet celebration for her fans nationwide. "Sparkle" opened Friday, a little more than seven months after the legendary singer died in Los Angeles. Houston's death came shortly after filming finished, causing a bit of a crisis for the movie's producer.

Entertainment correspondent Nischelle Turner joins me now from Los Angeles.

Nischelle, good morning.

So, the film's premiere this week was a pretty emotional one, wasn't it?

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Oh, absolutely, Randi. You know, Whitney was certainly on everyone's minds Thursday night at the premiere. The producer Debra Martin Chase said that the film is her gift to Whitney and this will be the way people remember her. That's what Chase said. She also said that Whitney gives the best performance of her career.

Jordin Sparks, who plays "Sparkle" in the film, said she gets emotional thinking about Whitney. Listen to this.

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JORDIN SPARKS, ACTRESS: It hits me in waves sometimes. I'll be talking in an interview and somebody says something and I'm like, OK, yes, this is the last piece of her legacy, you know, like this is the last piece. And it's really crazy because, I mean, like I would have never thought I would be in a movie with Whitney Houston, I never thought I'd be acting in a huge film. I never would have -- and to do it both together is incredible.

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TURNER: You know, "Sparkle" is a remake of the 1976 cult classic, which is actually one of my favorite movies. It starred Irene Cara and Phillip Michael Thomas.

The movie was Whitney Houston's fashion project. She spent more than 10 years developing this and it was supposed to spark a comeback but as you know this has turned into a memorial and remembrance.

KAYE: Yes. How do you think it's expected to do at the box office?

TURNER: It's gotten pretty good review reviews. It's expected to do well this weekend but it's going up against "Expendables 2" and "ParaNorman", which is a kids' film, so you know never. It's gotten good reviews. Everyone is really touting the acting in this movie and, of course, the singing because you got Whitney singing and you got Jordin Sparks singing. So, it should be an interesting film.

KAYE: All right. Let's talk about the other big story this week, Rihanna. The singer is opening up to Oprah Winfrey in an interview airing tomorrow, specifically talking about Chris Brown.

TURNER: Yes, she's opening way up to Oprah, Randi, and she's making some surprising revelations. It's her admission even after Chris Brown beat her she still felt protective towards her. That's what has really people talking today.

Take a look at what she has to say.

(BEGIN VIDEO CLIP)

RIHANNA: I felt protective. Like, I felt like the only person they hate right now s him. It was a weird, confusing space to be in. As angry as I was, as angry and hurt and betrayed, I just felt like he made that mistake because he needed help and, like, who's going to help him? Nobody's going to say, he needs help. Everybody's going to say, he's a monster, without looking at the source. I was more concerned about him.

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TURNER: OK. That is a wow for me. People have really jumped on this saying, how could she feel sorry and protective of a man who just abused her. But I think that this is a really raw and emotional Rihanna that we just saw there. Maybe she was expressing when a lot of women who are abused feel at first, when they're dealing with the fallout from an abusive situation.

Looking at that, I can't wait to see this interview, Randi. It airs this weekend on the OWN network.

KAYE: Yes, I'd like to have that interview analyzed by a psychotherapist, psychologist, because wow, that was some raw emotion, all right.

Nischelle, thank you so much.

TURNER: Yes.