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EARLY START WITH ASHLEIGH BANFIELD AND ZORAIDA SAMBOLIN

Team USA Uniforms Made In China; No Bomb Found On Flight; Yahoo Hacked; Anger And Shame At Penn State; Report Blasts Penn State Culture; Bowden: "Joe Made A Mistake"; Team USA Uniforms Made in China; Fallout from Penn State Report; Chimps Break Loose, Torment Civilians

Aired July 13, 2012 - 06:00   ET

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


ASHLEIGH BANFIELD, CNN ANCHOR: -- filming himself doing over 180 miles an hour in traffic. No joke, not a doctored video, that's just him and he's speeding.

Welcome back to EARLY START, everyone. It's nice to have you with us. I'm Ashleigh Banfield. Zoraida Sambolin is off today. It's 6:00 a.m. in the east.

Some fierce new outrage over the United States Olympic teams uniforms. One senator is calling for the uniforms to be burned in a bonfire.

All of this, why, because the red white and blue ensemble is entirely made in China. So who would be best to cover this story but Alina Cho with more on this. I think a lot of people were really surprised to find this out.

ALINA CHO, CNN ANCHOR: They were, you know, Ashleigh. Good morning. You know, everything in the uniform, incredibly from the beret to the blazer to the shoes to this shirt here were made in China.

They are made by American designer Ralph Lauren and they're just for the opening and closing ceremonies. Now I had an opportunity to recently look at the Olympic gear with David Lauren.

Now he is Ralph Lauren's son and the executive vice president of the company. He said they are focused on making Olympians look good.

(BEGIN VIDEO CLIP)

DAVID LAUREN, EXECUTIVE VICE PRESIDENT, POLO RALPH LAUREN: When you're meeting these athletes and they are walking in the first Olympics, many of them have never worn a tie, never worn jacket. They've never been on television before. We want the American team and athletes to really look like ambassadors.

(END VIDEO CLIP)

CHO: But the Chinese manufacturing has fuelled a bipartisan backlash on Capitol Hill. You see why, if you look closely at the tag thee, you do see very clearly at the bottom, made in China. Senator Kirsten Gillibrand and Congressman Steve Israel sent a letter to the chairman of the US Olympic Committee asking if the committee only source uniforms from the United States in the future.

But is that possible? The opening ceremonies are less than a month away and Senator Sherrod Brown suggested that U.S.O.C. get their uniforms from Hugo Boss, which has a factory in his state of Ohio. Senator Harry Reid was so mad he wanted to destroy the uniforms.

(BEGIN VIDEO CLIP)

SENATOR HARRY REID (D), MAJORITY LEADER: I am so upset that I think the Olympic Committee should be ashamed of themselves. I think they should be embarrassed. I think they should take all of the uniforms and pull them in a big pile and burn them and start all over again.

(END VIDEO CLIP)

CHO: Ouch. Designer Nanette Lepore who is a big supporter of keeping manufacturing jobs here in the United States, especially here in the garment district in New York says she is frustrated for a different reason. She says it is a missed opportunity.

(BEGIN VIDEO CLIP)

NANETTE LEPORE, DESIGNER: It's very disturbing because it completely could have been manufactured here in the United States in New York City or in any other city where there's factories that still exist.

We've been trying to raise awareness and trying to convince designers to move work back to the shores and stop offshoring and start onshoring. This would have been the perfect opportunity.

(END VIDEO CLIP)

CHO: And I will be speaking to Nanette Lepore live in the next half hour. So stay tuned to that.

Meanwhile, the U.S. Olympic Committee released a statement earlier this week, which says in part, "Unlike most Olympic teams around the world, the U.S. Olympic team is privately funded and we are grateful for the support of our sponsors.

We're proud of our partnership with Ralph Lauren, an iconic American company, and excited to watch America's finest athletes compete at the upcoming games in London."

Ralph Lauren, we have reached out for comment, but we haven't heard anything just yet, only they are not going to release a statement officially.

BANFIELD: This sounds very familiar, I feel I have heard this story before. Am I wrong?

CHO: No, you're absolutely right. In fact, back in 2008, you'll recall this isn't the first time that Ralph Lauren has outfitted Team USA. They did for the opening and closing ceremonies for Beijing at that time.

That was their first year dressing the Olympic team and that time to the uniforms were made in China. Before that, American athletes walked into the Olympics in clothing from Canadian company Roots, a company that you're familiar with.

BANFIELD: Not a Canadian company.

CHO: Now they designed a beret that became the signature souvenir for the 2002 Olympics in Salt Lake City and that naturally, Ashleigh, was made in Canada.

BANFIELD: Canadian athletes used to wear those too, the Roots clothing.

CHO: You know, you're absolutely right. I mean, here's the question, a lot of people in Congress are saying these uniforms should be made in the United States, we should burn them. Let's try to do that.

Can it be done in a month? We'll be talking to Nanette Lepore about that. The other thing to keep in mind too, Ralph Lauren, I did speak to somebody inside the company, who said, listen.

We do the opening and closing ceremonies and do not do the competing wear or the podium were so is it OK for someone to wear something not made from the USA when winning a medal.

But it's not OK for the opening and closing ceremonies. So they do have a valid point and I just wanted to point that out.

BANFIELD: By the way, this is really an international story because a lot of countries are facing the same story that we're doing right here in America today. I think New Zealand and I think Spain might have been one of them -- manufactured in other countries as well. It's a global -- it's a big global party, isn't it?

CHO: You're right.

BANFIELD: Thank you, Alina Cho. We have a developing story this morning that we want to get you up to date on. Investigators saying that they did not find any explosives on board a Delta plane that returned to Kennedy Airport in New York because of a security scare.

It was Delta Flight 126 and it turned around about an hour into its flight en route to Spain. The passengers were told to get off the plane and evacuate while the NYPD Bomb Squad got on the plane and started to investigate.

And they brought with them their bomb sniffing dogs too. Authorities say the plane was turned around after a passenger found drinking straws that had wires stuffed inside them and found that in the bathroom.

Internet security experts shocked by a huge breach at Yahoo! More than 440,000 e-mail addresses and passwords hacked and exposed yesterday. Experts say Yahoo! failed to take even the most basic precautions to protect the information. Yahoo's only confirming the breach but will not comment on its security.

It's 6 minutes now past 6:00. There's shock and sadness and not to mention shame this morning at Penn State. A blistering -- there's no other way to describe this, blistering report by the former FBI director leaving the school's reputation and legendary coach's legacy permanently stained.

Investigators concluding that Joe Paterno and top university officials actually empowered child predator Jerry Sandusky. The outrage is spreading so quickly there are calls to tear down this iconic statue of Joe Paterno that's outside Beaver Stadium.

Then there's the looming question, could more criminal charges be looming for the people who are named in the report. CNN's national correspondent Susan Candiotti is live from Philadelphia this morning.

This is just so incredibly far reaching, this university. Listen, it's an understatement to say that the university is reeling, but it's hard to imagine what they are doing in the face of such incredible potential litigation because of all of this.

SUSAN CANDIOTTI, CNN NATIONA CORRESPONDENT: They know they have vast problems ahead, Ashleigh, that's for sure. It is a scathing assessment of what went wrong and how Jerry Sandusky was able to rape and molest so many children for so many years.

Louis Freeh's report finding that four top Penn State officials including Joe Paterno were part of a culture of secrecy as they called it built around protecting Penn State University's image and its football program.

(BEGIN VIDEO CLIP)

LOUIS FREEH, FORMER FBI DIRECTOR: Our 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. Mr. Spanier, Schultz, Paterno and Curley, never demonstrated through actions or words any concern for Sandusky's victims until after Sandusky's arrest.

(END VIDEO CLIP)

CANDIOTTI: Louis Freeh also finding that Coach Paterno knew about problems with Jerry Sandusky going back to 1988. Louis Freeh also revealing some new e-mails about that including -- and despite testimony from Joe Paterno before a grand jury that he knew nothing about it, including an interview he gave to the "Washington Post" saying that same thing just before he died.

Louis Freeh presenting some new e-mails about this including one from Tim Curley, the athletic director, saying Joe Paterno wants to know where things stand with this.

And he also presented, we want to show you a handwritten note. It's kind of hard to make out, but it was written by Vice President Schultz after that 1998 incident saying that, is this the opening of Pandora's box. Are there other children?

Now lawyers representing President Graham Spanier, no comment, attorneys for Schultz and Curley saying that Freeh's report is totally incomplete and just wait until we get to the trial.

Remember they are charged with perjury, lying to a grand jury and failing to report. They say their clients will be vindicated -- Ashleigh.

BANFIELD: Just such troubling evidence and you know, this is what it is, it is evidence. It may not be the entire picture of evidence and the criminal investigation has the subpoena power to get more of that.

But while that is playing out, what is the family of Joe Paterno saying about all of this?

CANDIOTTI: Well, Ashleigh, they are continuing to defend Joe Paterno saying, yes, he was not a perfect man. But they continue to deny that he had the big picture -- that he knew about everything that was going on, they say it just isn't true. Listen.

(BEGIN VIDEO CLIP)

JAY PATERNO, JOE PATERNO'S SON: The thing I think that's important for everybody to understand, this report is by no means the end of all things that are going to come out. So we'll have more people on the record and their voices that were not heard by the free commission that will be in the court of law and I think that will help clarify some of these things.

(END VIDEO CLIP)

CANDIOTTI: Now, there is fallout we're hearing from some of Paterno's staunchest defenders including Phil Knight who is Chairman of the Board of Nike.

After Freeh's report came out yesterday and by the way, Phil Knight got a standing ovation during a memorial service on campus after Joe Paterno died.

And after the Freeh report came out, he announced that he was removing Paterno's name from a child care center at the Nike Corporate campus in Oregon -- Ashleigh.

BANFIELD: I don't think that's going to come as a surprise to a lot of people. And you're right, there's still more information that needs to come out, but the information we have so far is what we like to say in the world of law, a bad set of facts. Susan Candiotti live in Philly this morning, thank you.

CHO: Las Vegas police are used to getting weird calls, but this one even shocked them. Listen to this, a report that two chimps were on the loose and attacking cars.

Police say the chimpanzees escaped from a nearby home, they were pets, forced to shoot and kill one, the authorities and tranquilize the other.

That chimp was returned to the owner, but authorities are now looking into whether the person is even licensed to have chimps as pets.

BANFIELD: And coming up at 6:50 this morning, Jeff Corwin is going to join us on the program to talk a little bit about that. He is a wildlife biologist, has some insight into the behavior of chimps and also wildlife as pets, coming up again at 6:50 Eastern Time right here.

CHO: Looking forward to that, meanwhile, get a lot of this. Police in British Columbia trying to track down a motorcyclist who they believe -- well, he did, videotaped himself on a 186-mile-per-hour joyride down the busy trans-Canada highway.

BANFIELD: What an idiot.

CHO: The video has been viewed a million times on YouTube, million and one now. They have identified the rider as 25-year-old Randy George Scott, how they did that. I'm not quite sure, but they have.

They are smart over there. The incident took place back in April. Scott is facing charges that could land him five years behind bars.

BANFIELD: Well, that would be lucky that he didn't land 6 feet underground after this stupid stunt, honestly. It's 12 minutes past 6:00 on the east coast. She is legally blind, but it doesn't mean that she lacks vision, certainly not. Coming up, a beauty pageant contestant who's desire is to inspire.

(COMMERCIAL BREAK)

CHO: Sixteen minutes after the hour on a Friday. Welcome back to EARLY START. I want to get you up-to-date on all the top stories.

Christine Romans is here for that.

Hey, Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Lawmakers are fuming this morning that Team USA will be decked out in uniforms made in China. Senator Kirsten Gillibrand and Congressman Steve Israel sent a letter to the chairman of the U.S. Olympic Committee, asking that the committee only source uniforms from the United States in the future.

Senator Harry Reid suggesting a less diplomatic approach. He says, burn them.

The slaughter in Syria spiraling out of control. A government opposition group says 287 people were killed across the country yesterday, including 220 in the Hama province. That would make Thursday the deadliest day in Syria since the opposition uprising began 16 months ago.

Federal drug agents uncovering the sophisticated drug smuggling tunnel beneath the U.S. and Mexico. Authorities suspected the tunnel was 240 yards long, 55 feet down, was used to move billions of dollars of drugs for Arizona for sale into the U.S. Three drug suspects are in custody -- Ashleigh and Alina.

BANFIELD: All right. Christine, thanks so much.

OK. So, people in the Midwest certainly would probably prefer to have a rainy day right about now because there is quite a drought. Alexandra Steele is in for Rob Marciano this morning with the weather update.

I feel like all I ever do is toss to you was bad news -- fires, head or drought.

ALEXANDRA STEELE, AMS METEOROLOGIST: Extremes, right?

BANFIELD: Yes.

STEELE: Extreme weather, that's what we've seen. And, you know, even in this kind of minutia of these last couple of days, the extremity of kind of like having this rain just inundate the same areas over and over again is extreme in one regard.

Here's a look at what's happening. We have a stationary front and really just north of it, we're getting this unsettled air with the lifting from the front and unstable, very moisture laden atmosphere. We've got all this rain and with the showers and storms, this is really where we're going to see it on Friday today.

So, West Virginia, down through Tennessee, that's where we could see one to two inches of rain. Friday, a getaway day, a lot of big hubs here in the South, from the mid-Atlantic down to the Southeast. And especially later this afternoon and tonight, that's when we could some of the heaviest rain and flights will be impacted.

In terms of the temperature, certainly not as warm as it's been. The clouds and showers holding temperatures down -- 91 in Boston, 89 and temperatures above average in the Northeast. You can see Chicago to Kansas City. Tomorrow, temperatures pretty mild as well. But, you guys, today, especially in the Southeast, the scattered showers really could kind of allow for tough travel for what we can see this afternoon develop.

BANFIELD: All right. Alexandra, thanks so much, appreciate it.

CHO: All right. The audience will be a blur but her goals very clear. Eighteen-year-old Connor Boss is a blind beauty queen. She's the first legally blind woman to sign up for the Miss Florida USA pageant. She was diagnosed with a rare genetic disorder that causes vision loss.

(BEGIN VDIE OCLIP)

CONNOR BOSS, PAGEANT CONTESTANT: I've come to learn that it's not even about winning pageants. It's about -- I'm so glad that my story could be shared and at least I can inspire one person and if I can inspire one person, I feel I've won.

(END VIDEO CLIP)

CHO: What an adorable girl. If she brings home the Miss Florida crown tomorrow, she will represent the state in a Miss USA nationals. Wish her a lot of luck.

BANFIELD: Yes, we do, indeed.

The truth and we know that the huge trading losses at JPMorgan Chase were a major blow to the bank's reputation. In about an hour, we should learn the true extent of the impact on the company's bottom line and that's the man at the center of it all. The man who appeared before Congress. So, just how bad did it get at JPMorgan Chase? Well, they are hoping that gray stars are going to clear up.

(COMMERCIAL BREAK)

CHO: All right. It's 22 minutes after the hour. Minding your business this morning.

Today, it is all about JPMorgan Chase and its earnings report. We are going to find out how big the rogue trading loss was earlier in the spring.

And Christine Romans is our resident expert.

BANFIELD: We're talking a pretty big window, aren't we?

ROMANS: We are.

And I want to tell you sort of what happened here. We learned about this $2 billion trading loss earlier this year, actually the beginning of May. And, you know, $2 billion is an awful lot of money. The company for the whole year last year made something like $19 billion. So, to lose $2 billion in one trade shows a real collapse in risk management at this company that has prided itself a good risk management.

The CEO testified before the Senate and then he testified before the House in early June. You'll recall, he got hammered quite frankly before the House, kind of a gentleman's reception at the Senate where they asked about how big the loss would be.

And then later on we started to hear reports it could be bigger, maybe $5 billion, maybe $9 billion. We will find out for sure on the earnings call today. The company will release it second quarter earnings. We'll find out how big the loss was and what's happened further to the risk management of the bank to make sure it never happens again. We'll probably find out if there are any kinds of further layoffs for other reasons. We're going to find out what the impact is at the eurozone and its banking crisis.

There's a lot to go through. This is a humongous banks, and Jimmy Dimon is going to be sitting in a room with a bunch of analyst, and I mean, my guidance is this thing we'll get the earnings at 7:00. He's going to meet with analysts at 7:30, this can go well into the 9:00 hour as people get a chance to ask Jamie Dimon everything.

BANFIELD: At 7:29, you'll be pulling your hair out.

ROMANS: I'll be pulling my heart out. I'll get the report. I'll be pulling my heart try to find out the losses, the CIO --

(CROSSTALK)

BANFIELD: Can they actually know at this point? Can they assess the bottom line at this point?

ROMANS: Yes, I'm expecting they're going to say they've capped the loss. And they've unwound this trade. They figure -- this is priority number one for this company because this is such a reputational hit. I want you to listen to what Jamie Dimon said on the Hill.

He was pretty contrite about this. I want you to listen to what he said.

(BEGIN VIDEO CLIP)

JAMIE DIMON, CEO AND CHAIRMAN, JPMORGAN CHASE: That's why I'm here, we made a mistake, I'm absolutely responsible. The buck stops with me.

(END VIDEO CLIP)

ROMANS: I think that's why you're going to see him answering every single question from these analysts. He's going to say the buck stops with me, what do you want to know guys? He's going to show transparency overall.

BANFIELD: What's the thing we need to know about your money today?

ROMANS: All right. The one thing you know about your money today. Mortgage rates, record lows again, 30-year fixed rate -- drum roll, please -- 3.56 percent.

BANFIELD: What?

ROMANS: Let me say that again -- 3.56 percent. The 15-year fixed rate, 2.86 percent. Every time I tell you this, people go I can't get the loan.

CHO: Is it time to refinance again?

ROMANS: Maybe.

(CROSSTALK)

CHO: Three-six-five.

ROMANS: Not yet. I'll let you know.

CHO: Will you?

BANFIELD: That's a great question though. When do you know when you can recoup the losses from refinancing twice in a year?

ROMANS: You have to do the math yourself. If rates keep falling like this, 3.5 percent --

BANFIELD: From 4.25 and 3.65 and I would recoup in less than a year it was worth it for me -- 2.86.

(CROSSTALK)

ROMANS: I remember thinking 5.25 and thinking I was nabbing the deal of a lifetime, two points ago.

BANFIELD: That was then, that was ages ago, like a year.

ROMANS: So 2011.

BANFIELD: Exactly. Thanks, Christine.

CHO: President Obama coming clean, coming up, what he calls the biggest mistake of his first term.

(COMMERILA BREAK)

BANFIELD: Outrage over United States Olympic uniforms designed in America but made in China and one lawmaker is saying, we should just burn them all.

CHO: Shame at Penn State, with four top officials accused of a child sex abuse cover-up. The school braces for a flood of lawsuits and maybe more criminal charges.

BANFIELD: And a close brush with death, a driver somehow survives this spectacular crash up and over and all of it caught on surveillance camera.

Hello and welcome back everyone to EARLY START, a little crash to get you started this morning.

Alina Cho is in for Zoraida Sambolin.

CHO: Hey, Ashleigh. Good morning to you. Glad it's a Friday. Thirty minutes after the hour.

More on that controversy over the United States Olympic uniforms, lawmakers calling for the red, white and blue uniforms to be scrapped, even burned because they were made not in the United States but in China. But the United States Olympic committee is standing by designer, Ralph Lauren calling his brand an iconic American company.

I want to bring in Nanette Lepore. She's a fashion designer, who's been a strong proponent for keeping manufacturing jobs in the U.S. She has been for a long time. And a strong proponent of strengthening our garment district here in New York City.

So, Nanette, I was surprised to learn that 98 percent of all clothing brought into the United States is imported. So, is it really realistic, even though it really looks bad to have these uniforms made overseas, is it realistic to say that this should be made in the USA?

NANETTE LEPORE, DESIGNER: It's absolutely realistic. I've been manufacturing in New York City for 20 years and we're working with factories working at half capacity. There are companies dying for this opportunity. Not only is it realistic to do this one-off thing for the Olympics but the factories could go on to continually manufacturer.

CHO: But it's a dying breed unfortunately. As you admittedly point out, you say 15 percent of your clothing can't even be made here anymore because knitting mills are closing and those embellished garments are to expensive to make in the United States.

So, the trend, as much as you'd like to keep your clothing made here in the United States, it's getting harder and harder to do so, isn't it?

LEPORE: Not necessarily. There are so many advantages to working onshore as opposed to offshore that for me it outweighs the advantage of working overseas.

CHO: All right. I want to talk a little bit more about this USOC statement, sticking by and supporting Ralph Lauren and want to put it on the screen.

Quote, "Unlike most Olympic teams around the world, the U.S. Olympic team is privately funded and we are grateful for the support of our sponsors. We're proud of our partnership with Ralph Lauren, an iconic American company."

The right decision to come out with that statement?

LEPORE: I think that they avoided the issue. I think it is true, that I'm sure Ralph Lauren does amazing things for the Olympic teams and they don't want a backlash against Ralph Lauren.

But I really that it should be up to the committee in the future to make sure (AUDIO GAP) made in America.

CHO: Let's talk about the bottom line because these are obviously huge businesses and the reason why they are sending in so many clothing companies send the clothes overseas to be made is because it's cheaper, right? I mean, isn't that the reality today?

You are famous for keeping all of your clothes here in the USA and made in the USA. But you're one of a few, aren't you?

LEPORE: I am, but when I counter source my costing, it comes close to the same because we're saving imports and freight and so many conveniences of manufacturing. But also, sometimes in a case like this, it should be more ethical. Maybe we should think because we're representing America, this is an opportunity to show off our manufacturing skills. It doesn't always have to be (AUDIO GAP) sometimes and I think that it should be a general psyche that we should think about what's going to bring jobs and make our country stronger.

CHO: One very last question. Opening ceremonies are less than a month away. July 29th, is it even possible, Harry Reid is calling for the uniforms to be burned. Is it even possible to remake the entire team in time for the opening ceremony?

LEPORE: I think, I think it would (AUDIO BREAK) totally be done.

CHO: All right. Nanette Lepore, always great to see you. Thanks for waking up early for us.

LEPORE: Me, too. Nice to see you.

CHO: Nice to see you -- Ashleigh.

BANFIELD: I hope they don't burn them, though. I have to be honest. I love Harry Reid, but I don't think anybody should be burning any clothing. That's for sure. No matter where it is made.

Thank you, Alina.

There's plenty of reaction by the way this morning to the president's claim that the biggest mistake of the first term is putting policy over story telling. President Obama telling CBS News that he's been criticized for not keeping the nation informed about the direction that he's going in. And he calls the criticism valid.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The mistake of my first couple of years was thinking that this job was just about getting the policy right. And that's important. But the nature of this office is also to tell a story to the American people that gives them a sense of unity and purpose and optimism, especially during tough times.

(END VIDEO CLIP)

SCHULTZ: Mitt Romney quick to jump on the president's remarks, suggesting he's out of touch if he, quote, "believes millions of Americans lost their homes and jobs and livelihood because he failed to tell a good story," end quote.

If you are not near your TV, make sure you come to your television now. Because this is a spectacular crash caught in a red light video. Up and launched up and over and on end and back. This happened at an intersection in New Jersey.

We get the front view, up and over and there goes the light standard and we have the rear view, cars beating through a red light, clipped by a cab and sent spinning through the air. Wow. And the delivery truck just keeps going. It's Jersey, he's got a place to be. He's able to see.

According to the (INAUDIBLE) blog, the 29-year-od driver sustained minor injuries and are you ready for this? Alina?

CHO: I know.

BANFIELD: Arrested, guess what for? DWI.

This is what happens when you drink and drive, you go through red lights and clip cabs (AUDIO BREAK) maybe end up in jail. Not a good idea.

CHO: Not at all.

BANFIELD: Makes for good video though.

CHO: Reputation tarnished. What's next for Penn State? We're going to dive deep into the long legal road after a scathing report accusing top school officials of a sex abuse cover-up. That's next.

(COMMERCIAL BREAK)

BANFIELD: Fear, fallout, and outrage actually hitting up this morning with the new release of a scathing Penn State report. The former director of the FBI, Louis Freeh, is accusing four officials, including Joe Paterno, of what he calls empowering the convicted sex offender, Jerry Sandusky.

(BEGIN VIDEO CLIP)

LOUIS FREEH, FORMER FBI DIRECTOR: We see evidence of their proposed plan of action in February of 2001 that included reporting allegations about Sandusky to the authorities. After Mr. Curley consulted with Mr. Paterno, however, they changed the plan and decided to not make the report to the authorities.

(END VIDEO CLIP)

BANFIELD: And that is serious. You can imagine the backlash, it's only beginning, there are calls for the statue on the campus of Joe Paterno to be taken down and done away with.

In the meantime, the former athletic director Tim Curley and former vice president of the university, Gary Schultz, are facing charges of perjury and failing to report child abuse. And as of now, the president, the former president, Graham Spanier, is not facing any charges but conventional wisdom says that could certainly change given the revelations and there is a parallel investigation that continues to be carried out by the authorities on this one, too.

Our CNN legal analyst Sunny Hostin is here with the breakdown on all of this. There's so much -- so much to go over when it comes to this.

But let me start here: this is a scathing report from Louis Freeh, the former director of the FBI, hired by the board of trustees by Penn State. So, kind of like an internal investigation and yet Louis Freeh is scathing about not only these four top officials but the trustees themselves.

SUNNY HOSTIN, CNN LEGAL ANALYST: That's right. I mean, certainly Penn State is to be commended for starting this internal investigation but let's face it and let's be very clear, that is a very defensive move. That is a move to ward off any criminal charges against Penn State, because typically when prosecutors look at these kind of cases, they look at culpability, they look at who is responsible. And institutions are sometimes charged criminally as well.

BANFIELD: How can you ward it of when you hired someone to suggest how culpable you are?

HOSTIN: It's very, very smart, because what then happens is, if the government is interested in prosecuting Penn State, Penn State can say, listen, I've already conducted this internal investigation, I'm a good corporate citizen and including the fact that I have all of these recommendations given by the former FBI director and we have implemented these things. That's a very defensive smart thing for them to do.

BANFIELD: Here I was thinking it was altruistic that they wanted to get to the truth and were suggesting they needed to do was circle the wagons and get insular about this and protect themselves.

HOSTIN: That's typically what institutions do.

BANFIED: So, let's talk about how vulnerable it is.

And let me start with this. There's a note that has been made public that was from the former vice president Gary Schultz that speaks about truly what this could open up. They are talking back in 1998, a shower incident where a mother came forward and was concerned about.

Essentially what it says, it asks whether this could be a Pandora's Box and whether there could be other children. This is the only mention bit the way of other children that I have heard heretofore.

But the fact there is a concern about other children and no action taken -- does this leave not only this particular individual but the institution vulnerable to the civil litigation that is sure to be piled on?

HOSTIN: There's just no question about it. I mean, that is probably in my experience one of the most damaging pieces of evidence I have seen. It certainly infers that there was the idea that this could be much bigger than what they suspected. That means there should have been an investigation.

So, there's no question that there are some civil cases pending, Ashleigh. There will be more. There's a fund that has been put together to deal with this. There is no question that these cases will be settled. Penn State has given any indication they are going to settle the cases.

The only question is how much money will Penn State dole out to these victims.

BANFIELD: Well, from what I understand, the fund is around $2 billion. Can this shut down? Can this kind of civil litigation and the number of victims that are out there, and once that we don't even know about potentially who could come forward and field civil suit, could it bankrupt this university?

HOSTIN: No. No, it will not. This is a very strong university.

Even in this report, Louis Freeh says Penn State is a good university. It's great university.

So, they're doing what they need to do. This will not shut down Penn State. Whether or not it tarnishes Penn State's reputation forever, that's another story.

BANFIELD: Yes. Well, that one will be written in the history books. Thank you, Sunny Hostin -- Alina.

CHO: All right. Soledad O'Brien joins us now with a look at what's ahead on "Starting Point." Hey, girl. How are you? Good morning.

SOLEDAD O'BRIEN, CNN CORRESPONDENT: Hey, good morning. I'm great. Lots to get to you (ph) this morning. All eyes are on JPMorgan Chase. In 10 minutes or so, the bank is going to release its first earnings report since that multibillion dollar trading loss. What's at stake? Some people say your 401(k) could be.

We're all (INAUDIBLE) this developing story. We're going to bring you those numbers as soon as they're announced.

Plus, some are saying burn them. Some lawmakers furious about Team USA's Olympic uniforms because they're made in China. What are they going to do about it? What do the athletes think? We're going to talk to 12-time medalist Dara Torres (ph). She'll be joining us live this morning.

And hall of shame, Ashleigh was just talking about that report that blames top Penn State officials, including the legendary football coach, Joe Paterno, for hiding child sex abuse. What's going to happen to the football program? Will they have to pay? Tom Kline (ph) is an attorney for Sandusky victim number five. He'll be chatting with us live this morning as well. And the National Governors Association meeting gets under way. Some big players to talk with us this morning. Maryland's governor, Martin O'Malley, Iowa's governor, Terry Branstad, Virginia's governor, Bob McDonnell, all my guests this morning right at the top of hour. We'll see you then.

CHO: Busy show.

O'BRIEN: Yes, indeed.

CHO: We'll be watching. I'll be joining you again. All right. Thanks, Soledad. We'll see you then.

Plenty of danger lurks on the average big city street, but you don't expect wild animals to attack in broad daylight. Coming up, what we can learn from yesterday's bizarre chimp attack in Las Vegas? We'll be talking live with TV animal expert, Jeff Corwin, next.

(COMMERCIAL BREAK)

CHO: Hi. Welcome back. It's 10 minutes before the top of the hour. Terror in Las Vegas. Two pet chimpanzees escaped from their home yesterday, went wild, pounding on cars, including a police car. One of the chimps was shot and killed by cops after it approached and threatened a crowd, including children. The other chip was sedated.

Jeff Corwin is a wildlife biologist and host of "Ocean Mysteries" on ABC. He is here to break it all down for us, especially the fascination with having these large and often imposing animals as pets. Jeff, great to see you as always. Now, no one was injured in this case, but you say, really, this is a catastrophe waiting to happen, right?

JEFF CORWIN, WILDLIFE BIOLOGIST AND CONSERVATIONS: Absolutely is. It's a ticking time bomb of primate proportions. Essentially these are (INAUDIBLE) and it's a recipe for disaster when you take wild creatures like this, whether it'd be a tiger or a lion or chimpanzee and mix it in sort of private ownership.

They're not pets. And when people try to tame the wild beast, inevitably, someone gets bitten or scratched. In this case, it's these chimps through no fault of their own that pay the price.

CHO: How common is it? You know, we tend to hear about these isolated cases most notably back in 2008 when Charla Nash (ph) famously got her face mauled. It was from neighbor's chimp who escaped, and thankfully, we're happy to report. She's doing just fine.

In fact, I just read she's back to eating solid food now. There you see her, but who could forget that story. Having said that, I mean, how common is it for people to have chimpanzees as pets?

CORWIN: Well, two or three decades ago, it was a little bit more common. It was considered a trophy or living prestige sort of pet. Today, it's a lot less common. That's because these animals are number one, incredibly expensive.

And number two, in most places, it's illegal. And number three, in order to keep one of these animals in a captive environment, it requires tremendous amounts of permits, both in the fed and state level in most places. So, your average Joe or Joanne will not find themselves in a position to have one of these as pets. (INAUDIBLE)

CHO: Oh, boy, yes. We're trying to --

CORWIN: (INAUDIBLE) and goes to the people having them.

CHO: We're really, really struggling to hear you Jeff Corwin. We were hoping if the Skype wasn't working, which ultimately it didn't. We were hoping to get you just on the phone, but maybe we can get you back on the phone. But, thank you for your insight on that. Unbelievable.

BANFIELD: I hate when that happens. I was so fascinated listening to him.

CHO: And he has so much insight about this. But bottom line I think is what he's saying, as he said a ticking time bomb.

BANFIELD: Yes.

CHO: And people should just not have these chimpanzees as pets. Most people, he is, but most people are not trained to have them in their home.

BANFIELD: Wild means wild no matter how much you think they're domesticated. And speaking of wild, are you ready for this one? Steven Tyler? Are you an Aerosmith fan? Oh, come on!

CHO: I mean, not like you.

BANFIELD: Let your freak flag fly, girl friend. Steven Tyler is announcing that he's going to leave "American Idol," but guess what? He's going to get Aerosmith back together. Aerosmith is putting the finishing touches on a new album right now. It's due out on Election Day. Hopefully, a big tour to be announced right after that. Tyler spent two seasons as a judge on "American Idol."

CHO: I think a lot of people were worried -- not worried, but you know, a little concerned at the time like how would he do. He was great.

BANFIELD: He did really good. Really, really good.

CHO: He did terrific.

BANFIELD: And the creator, Simon Fuller of "Idol," says no hard feelings at all. Steven Tyler is a real idol, a rock legend, and without question, he ain't wrong.

CHO: Well, it seems like "Idol" is having some big problems right now, because there are questions about whether Randy Jackson is going to stay on the show and Jennifer Lopez --

(CROSSTALK)

CHO: That's right. There is "The Voice," which was hugely popular. Love me some Adam Levine. See, that's where I'm at.

BANFIELD: I'm an Adam Levine --

CHO: Yes. Who isn't, right?

CHO: Today's "Best Advice" comes from one of our own, Ms. Ashleigh Banfield.

BANFIELD: I get to do "Best Advice" because it's my last day on the show today.

CHO: I know.

BANFIELD: I'm moving on to the 11:00 a.m. on CNN.

CHO: -- sleeping, girl friend.

BANFIELD: Best advice, don't set your alarm when you don't have to get up. But I'm going to give you the real set of best advice after the break.

CHO: Good. I can't wait to hear this.

(COMMERCIAL BREAK)

CHO: All right. "Starting Point" less than a minute away. We wrap it up as always with "Best Advice."

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And today, the "Best Advice" comes from our own Ashleigh Banfield. It's her last morning waking up with us.

BANFIELD: I know. I'm very sad to be leaving you, but very excited about doing 11:00 a.m. on CNN. So, here's my "Best Advice." It starts with my mom's best advice to me, which is, luck is the crossroads between opportunity and preparation. So, make sure you prepare when the luck strikes. So, that's kind of how the success will happen.

ROMANS: It's so practical.

BANFIELD: Isn't it, though? So, -- but in that comes my advice, read, never stop. Start when you can start, first grade and never stop. Read everything you can.

CHO: I always say overprepare and then go with the flow.

ROMANS: True. I can tell you I'm overpreparing right now because I'm waiting for JPMorgan results. I just want everyone to know that it's first quarter earnings will be restated. We've been waiting for the second quarter. So, in the next few minutes, I'm going to have more news about JPMorgan, but that's -- they're restating their first quarter.

BANFIELD: You bring me to my third point of "Best Advice" and that is love what you do and you'll never work a day in your life. Love what you do and you'll never -- love your work and you'll never work a day in your life because that's you. You love your work.

CHO: Tony Bennett said that once to me 80 some odd years strong, and yes.

(CROSSTALK)

BANFIELD: We're in the newsroom and all we ever talk about is like Christine's got these amazing little bits of wisdom on business because she just loves doing this.

ROMANS: But I'm hoping that we'll be able to do a lot of fun business stuff and lots of news stuff at 11 o'clock when you're -- starts Monday?

BANFIELD: It's a guarantee.

(CROSSTALK)

(LAUGHTER)

BANFIELD: I'm taking a wee vacation having worked a few doubles and triples in the last couple of months. And so, I got the kids and we're about to head to the airport.

CHO: You know this, Ashleigh and I have known each other for how many years?

BANFIELD: Twelve years now.

CHO: Longer.

BANFIELD: Going on 13 now.

CHO: It's been a long time.

ROMANS: Back when you had braces and glasses.

(CROSSTALK)

BANFIELD: When we were learning to read.

(LAUGHTER)

ROMANS: Anyway, love you.

BANFIELD: So, it's the last chance I get to say, that's EARLY START, the news from "A" to "Z," but today is the news from "A" to Cho. I'm Ashleigh Banfield. It's been thrilled to be with you every morning.

CHO: And we're going to miss you on the early morning show. I'm Alina Cho. "Starting Point" with Soledad O'Brien starts right now.

O'BRIEN: And our "Starting Point" this morning, how many millions of dollars are we really talking about? It's all about JPMorgan Chase and the big earnings report. The numbers out. We're all over it. We're going to tell you what it means for your money.

Plus, seeing red. Take a look.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, (D) SENATE MAJORITY LEADER: Put them in a big pile and burn them and start all over again.

(END VIDEO CLIP)

O'BRIEN: That's Senator Harry Reid. Lawmakers are fuming today that Team USA is going to be decked out in uniforms that are made in China.

A legacy no longer about how many wins but how many victims. New report says Joe Paterno and Penn State helped protect a child predator for 14 years. Now, will the university and its football program pay?

Have a packed show this morning. We're going to be talking to Tom Kline. He's an attorney for Sandusky victim number five.

And with the governors big meeting this weekend. Maryland governor, Martin O'Malley is our guest. Iowa's governor, Terry Branstad is our guest. Virginia governor, Bob McDonnell, also here.

Also, we're going to talk to former U.S. Olympian, Dara Torres.

It's Friday the 13th and "Starting Point" begins right now.

ANNOUNCER: This is CNN Breaking News.