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CNN NEWSROOM

Jodi Arias Murder Trial; Politicians Arrested in Bribery Probe; Ware Hopes to Make Final Four; Law Grads Sue Over Low-Paying Jobs; Fallon and Leno Do a Duet; Knowing When to Sell Stocks

Aired April 2, 2013 - 13:30   ET

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


SUZANNE MALVEAUX, CNN ANCHOR: Flight attendants are taking their fight now to the people. They want passengers to just say no to a new security policy. In three weeks the Transportation Safety Administration is going to allow small knives through security check points. Flight attendants nationwide, they are handing out flyers. They're asking travelers to tell Congress to stop the new policy.

And President Obama wants to get a better idea of how our brains work. Just a couple of hours ago he announced a new plan to find out. It is called the Brain Initiative. Now the project is going to map the inner workings of the brain looking for clues to things like epilepsy, autism, and Alzheimer's disease. The project's initial cost, $100 million. Congress is going to have to agree to fund it.

Jodi Arias has been on trial now for 40 days and now could be all over because of a single juror. The defense has now filed a motion for a mistrial saying juror number five did something you just cannot do as a juror. She allegedly talked about the case in front of fellow jurors.

I want to bring in our Ted Rowlands who is following this every step of the way and there are two developments here.

First of all, explain to us about juror number five, what the defense is claiming here in this mistrial motion.

TED ROWLANDS, CNN CORRESPONDENT: Well, you said it. They are claiming that she talked about the case, which of course is a huge no- no for any jury, no matter what the case is but especially in a death penalty case that we have here. And that's being discussed right now. Court was to have started at top of the hour but they're in chambers right now discussing what to do about juror number five.

Basically what happened was they were in chambers talking to jurors last week and it came up that juror number five had said something to multiple jurors about the case. That triggered this defense motion for a mistrial.

Also in the motion, they said that they would be happy if they would just get rid of juror number five, if the judge would get rid of juror number five, that likely is where this will go. We'll find out in the next few minutes presumably as they're talking about it in chambers.

MALVEAUX: And Ted, could -- if they get rid of that juror does it mean that the whole thing is a mistrial or do they -- can they replace that juror? I mean, is there some middle ground here?

ROWLANDS: Yes. The defense right now is asking for a mistrial which would start everything from scratch. They've already spent $1.4 million just defending Jodi Arias. The odds of that happening are miniscule. Likely what will happen if the judge decides to intercede -- because we don't know what juror number five said and how dramatic it was.

Likely she'll get rid of juror number five to err on the side of caution in a death penalty case. There's 18 jurors, which means there are six alternates, that means they'd be down to five, still plenty of jurors to conduct this trial. So it would be -- they would basically just pick up -- send her home and then pick up where they left off.

MALVEAUX: All right. Ted, we're going to get back to you as soon as you find out whether or not there is a mistrial or if this continues. Thanks, Ted. Appreciate it.

Bribery, extortion, and mail fraud. This is all part of an alleged plot to rig the New York City mayor's race. Up next.

(COMMERCIAL BREAK)

MALVEAUX: Six New York politicians were arrested today accused of either paying or taking bribes involving the city's upcoming mayor's case.

Mary Snow, she's joining us from White Plains, New York, with some of the details.

Mary, it sounds pretty serious actually. Tell us who was involved and how much money we're talking about behind this.

MARY SNOW, CNN CORRESPONDENT: Well, Suzanne, prosecutors say more than $100,000 in cash bribes changed hands in three bribery schemes. But at the core of it, the central figure that prosecutors say was the mastermind or -- was behind the game plan was a key figure named Malcolm Smith. He is a Democratic state senator, a prominent one, had been the president of state Senate at one point.

And he is accused of trying to bribe his way to the mayoral race next year. And in this criminal complaint that was unsealed today, it is alleged that he tried to pay people off in order to run as a Republican candidate thinking that was his best shot in next year's race. And the U.S. attorney says New York government it demonstrates what he calls a "show me the money" culture.

(BEGIN VIDEOTAPE)

PREET SHARARA, U.S. ATTORNEY: Every New Yorker should be disheartened and dismayed by the sad state of affairs in this great state. From time to time the question arises, how common is corruption in New York? I can tell you based on the cases that we have brought and continue to bring, it seems downright pervasive.

But don't take my word for it. Consider the words of City Councilman Daniel Holloran caught on tape in this case. After allegedly receiving a $7500 cash bribe, he says to the cooperating witness, and you can see it on the chart here again to my left, quote, money is what greases the wheels.

(END VIDEO CLIP)

SNOW: Malcolm Smith is expected along with several others to appear in court within the hour. His attorney earlier today calls him a dedicated public servant, saying that he denies the allegations in that complaint -- Suzanne.

MALVEAUX: All right, Mary, appreciate it. Thank you.

They go to law school, right, dreaming of jobs with fat salaries. The jobs they actually get, waiting tables, folding shirts at department stores, and testing software. Up next.

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MALVEAUX: Injured Louisville basketball player Kevin Ware has now been released from the hospital. That is good news. He is hoping for a quick recovery. You might recall, of course, this is after he broke his leg at last weekend's NCAA Midwest Regional Final. It was so dramatic and traumatic. His team went on to beat Duke. But he is out for at least the next six months. His mother says Ware is a fighter and wants to watch his team play here right here in Atlanta this weekend, the Final Four.

(BEGIN VIDEO CLIP)

LISA JUNIOR, KEVIN WARE'S MOTHER: He's not so much focusing on what happened but he's focusing on recovery of it all. He still wants to be there to support his team and he's in great spirits. I have no doubts that he would be back stronger and even better than he was. Like I said, he's had to overcome a lot of obstacles and it seems as if every obstacle that he has to go through he becomes a better man because of it.

(END VIDEO CLIP)

MALVEAUX: We congratulate him. Kevin Ware, he got some support from, of course, a guy who knows something about injuries, Joe Theismann, the NFL great who had a career-ending leg injury on national TV. Watch.

(BEGIN VIDEO CLIP)

JOE THEISMANN, FORMER NFL QUARTERBACK: But everybody I talked to feels like he'll be able to come back and do the things that he was able to do. I told him, I said, you're going to be the NCAA college basketball player, comeback player of the year next year. I believe that 100 percent. And I believe he's going to be a great contributor to Louisville going forward for the next couple of years in Rick's -- in the program.

But you have to have a dream. There has to be a reason to get up and go out and go through the anguish and the pain and the rehab.

(END VIDEO CLIP)

MALVEAUX: But one of those reason for Ware making it here to Atlanta, it's not just about the final four, it is really a homecoming for him. He is from the area, the Atlanta area. And we, of course, we are wishing him all the best as we follow him here home.

Florida Gulf Coast, the Cinderella team of March Madness, did not make it past the Sweet 16 but the coach, well, he's moving on. Andy Enfield, he has been hired by the University of Southern California as its new head coach. And Florida Gulf Coast Eagles captivated the nation as the first number 15 seed to make it to the NCAA Sweet 16.

And in today's economy could be hard, of course, to find a job. So many students, they look at the school's success rate. So if the school says OK, 97 percent of its graduates found employment within nine months you'd probably want to apply. Right? But what if it's not the whole truth?

There are dozens of law school graduates who say that's the case and they're now suing their schools because they can't find a job.

I want to bring in our legal contributor Paul Callan to talk about it.

So the first blush, Paul, you say, come on, really? You blame the school, really? But now we're learning that these graduates, they look at the records of their schools and perhaps they're not really telling the full story about the kinds of jobs that those graduate are getting.

PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, it's very true. And I'm just happy I have a job. So -- in this market. And I tell you -- you know, I'll tell you why, because what happened with the law schools is, it became sort of a cash cow for the university industry. You know?

You put a law professor in front of, you know, 25, 30, 300 students, and you charge them 50 grand a year to go to law school. Universities make a lot of money. So what's happened now? In California two- thirds of California law schools report that less than 50 percent of their graduates have jobs in the law nine months after graduation.

Now that's after paying, in some cases, $150,000 in educational expenses. So people are very upset about this and they're saying that law schools made material representations about employability that were lies and they're starting lawsuits all across the country.

MALVEAUX: So talk about that. I mean I guess the lie aspect of it. Because a lot of people think, well, you know, you can't blame the school for the state of the economy if people can't get good jobs. But there does seem to be a case that they have if the school are saying, look, you know, we've got a record number of people employed but they don't go into the details that they might be working a minimum wage --

CALLAN: Well --

MALVEAUX: -- or, you know, at a bar or restaurant or something like.

CALLAN: You know, here's --

MALVEAUX: That it's misleading.

CALLAN: I just lost my --

MALVEAUX: Where did you go? OK. He lost his microphone. Let's see if we can get him back. If not we'll --

CALLAN: I think you can hear me.

MALVEAUX: I can hear you, Paul.

CALLAN: See, essentially what was going on was the schools were -- I mean it's just amazing what they were doing. What the schools were doing was, when "U.S. News and World Report" was doing its survey, they were hiring unemployed law students from their universities as sort of paralegals so that they could then claim that they were employed nine months after graduating.

Then they would lay them off. And it would look like they had huge numbers of graduates employed. So these people are bringing these lawsuits, they're saying that's fraud, and we can't tolerate that.

MALVEAUX: Paul, is there any precedent for this? I mean, do they -- do they have a pretty good strong case?

CALLAN: I have no sense so --

MALVEAUX: I think he doesn't hear us. OK, Paul, we'll let you go there. We're going to circle back and talk about this at another time. But clearly, really fascinating lawsuits, these students that are actually weighing in against their law schools.

Another story we're following. A relaxing family vacation, right, turning into a pretty scary situation. This is for supermodel Heidi Klum. Her daring rescue up next.

Plus, Jimmy Fallon versus Jay Leno. A lot of buzz over who's going to win the battle to host "The Tonight Show." The "West Side Story" face-off. Next.

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MALVEAUX: Frightening incident happening there. Supermodel Heidi Klum, Klum's 7-year-old son was swimming with two nannies in Hawaii when they all got caught up in a riptide. That is when she jumped in the water along with her boyfriend, helped pull all three of them to safety. She said she is just thankful that her son is a strong swimmer.

And one of the best dramas on TV, once again, what's going on with Jay Leno? This time rumors of Jimmy Fallon stepping in his shoes on "The Tonight Show." But being the comedians that they are, the two of them having a little fun with it all last night. Take a look.

(BEGIN VIDEO CLIP)

JIMMY FALLON, TV HOST: (Singing) Tonight, tonight who's going to host "Tonight"? Is it going to be Jimmy or Jay? Tonight, tonight, where will they tape "Tonight"? In New York, will it stay in L.A.?

(END VIDEO CLIP)

MALVEAUX: I love this, Nischelle. This is so funny.

Nischelle Turner joining us.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Wait, we're going to hear from -- we don't get to hear Jay Leno's voice? I mean, come on.

MALVEAUX: Sorry. OK. We're kind of running out of time. But give us the full --

TURNER: That's all right.

(LAUGHTER)

MALVEAUX: Give us the full skinny anyway. Tell us.

TURNER: Well, you know, Suzanne, what's at stake here is just basically one of the most famous franchises in television history. But, you know, I think these guys are trying to deal with this issue of, will Fallon replace Leno just the best way they know how, and that's by making a joke about it. You know, despite his popularity, Jay Leno is a pretty polarizing figure. He's always had his share of detractors inside and outside of the industry. But he is a survivor.

Remember, back in 1992, he --

(CROSSTALK)

MALVEAUX: Yes.

TURNER: -- with David Letterman to get that job a couple of years ago. He survived the attempt to replace him with Conan O'Brien, and although NBC does seem to be ready to move on with Jimmy Fallon as the host of "The Tonight Show," I would say don't ever count Jay out because, number one, his ratings are generally higher than Letterman or Jimmy Kimmel's and he's also got a contract and that contract reportedly runs through the fall of next year. So actually, Suzanne, all of this adds up to a kind of sticky situation for NBC executives.

(LAUGHTER)

MALVEAUX: You see, we got Leno on there. We got both of them on here. But there is a lot --

TURNER: Right.

MALVEAUX: A lot at stake here, yes?

TURNER: Yes. You know, there definitely is a lot at stake. Like I said, just basically the future of the franchise, "The Tonight Show." And it's interesting because some people would wonder why would NBC even want to replace him.

MALVEAUX: Right.

TURNER: But there's two reasons for this. You know, first of all, the networks are always looking for a younger demographic. Second of all, Jimmy Fallon is developing a really strong following online. He does a lot of those videos like you just saw that become viral. Remember the history of rap videos with Justin Timberlake. All of that are kind of thing is what the network executives seem to think that would help grow their audience.

Now if NBC does replace Jay Leno, you hear about them joke about his options.

MALVEAUX: Yes, right. Right.

TURNER: Saying in that video there, he's got FOX on the line. FOX doesn't have a late night show. But if Leno becomes available, they may get one.

MALVEAUX: There you go. That's where it might be going. All right. Nischelle, thank you.

TURNER: Yes.

MALVEAUX: Good to see you.

The markets, they're up again, hitting another record. We'll take a look at how and when to sell your stocks to make the most of your money.

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MALVEAUX: In northern California, the city of Stockton might be allowed to file for a bankruptcy now. A federal judge has approved the city's request in a case that sets the stage for a long battle between bond holders and the California pension system.

Stockton is the largest U.S. city ever to file for bankruptcy. Among its creditors, it owes $900 million to the California employees -- public employees retirement system.

Stocks deadly climbing today, that is good news. The market reaching new highs. So how do you know when to sell?

Ali Velshi and Christine Romans here with some answers to today's how to speak money.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: All right. Thanks. You know, stocks off to a good start to the second quarter after what -- the technical term for the first quarter, Ali, is awesome. An awesome first quarter. The Dow opened at a record trading high this morning. All this good news begs the question, though, when does it end and when should you get out?

ALI VELSHI, HOST, CNN'S YOUR MONEY: I have an answer. Actually if I had an answer I could afford a hair transplant. But most investors have no idea when a rally will end or begin for that matter, which is why you should always be aware of what's in your portfolio and make sure it suits your financial goals.

Let me just show you the Dow. Since the beginning of the year, up 11 percent. NASDAQ up 8 percent. And the S&P, which I think is more important for most people.

ROMANS: Yes.

VELSHI: Is up 10 percent.

ROMANS: Let's look at what experts say about this particular rally. If you look at the new CNN Money survey of the S&P 500, where it will be at the end of the year, you can see where it is now, right here, the consensus is not very far from where we are right now. There are some -- still going higher. So you're going to have more. Some think that they're going to take money off the table. But, Ali, this is not much of an advance for the rest of the year.

VELSHI: Right. We're at 1570-ish today. The consensus high is 1581. Look, there some people who think it's going to go way down. If you're one of those people, there is a way to invest or cash out. There are some people who think it could go a lot higher. But if it gets to 1581, that's 11 percent, that's the average, a long-term average, of what the stock market does.

So the question is, if the stock market only going to go up one more percentage point for the entire year, how do you make money?

ROMANS: I know. So what signs, Ali, do you need to look for to know when to cash out? That is the big question here.

Consider selling many people say if a stock is up 20, 25 percent. Well, many of you, maybe you're up almost in parts of your portfolio. No one is ever upset with a 25 percent gain. There is also, you know, the idea of a sugar rush. If everyone is talking about a stock, might be the time to get out. Don't always follow the herd.

VELSHI: All right. So read up on companies' quarterly earnings report. Pay attention to any slip in profits. You can get all of this, by the way, on CNNmoney.com, and pay attention to the pessimists. We're not actually pessimists. But Chicken Little is never popular. Sometimes if they have a good track record you might want to pay attention.

And if you got losing stocks, don't hang on to a loser forever. Consider selling a stock if it's down 7 or 8 percent from where you paid and you don't see it going up. Remember one thing, your money in the bank or in CDs will never keep up with inflation. If you're not invested in the stock market, plus you can't just invest and walk away, especially when you're in a high market like this. You have to pay attention and don't be afraid to book profits and sell things when you can.

ROMANS: Good luck.

MALVEAUX: All right. Thank you. Each week Ali and Christine giving you tips on how you could put your financial house in order. You can also check out their books, "How to Speak Money."

David Beckham, of course, balancing career, parenting and traveling all at once. The 37-year-old superstar sat down with Pedro Pinto, let us in on how life has been since leaving L.A. for Paris.

(BEGIN VIDEO CLIP)

About the sacrifices, that's obviously the sacrifice that I have to make as a -- as a father and as a husband, you know, being away from my family. You know, it's only for a short time, but it is difficult being away from the children, you know. Being away from the children every single day. But, you know, they -- they understand it. They understand that daddy works hard.

(END VIDEO CLIP)

MALVEAUX: He works hard. And he says if he's ever going to play for a team for his home country, England, well, he says if there's ever a chance, an opportunity, he's available.

Several stories catching our attention today. Photos, too. Take a look at this. This is in Gaza City. A girls-only class in session. New law that mandates separate classrooms for boys and girls starting at age 9 now going into effect.

In Bangladesh, police stand guard as anti-government strikes intensify. Today, opposition forces launched homemade bombs and set fire to vehicles inside that capital.

And in Nepal, cows now becoming a major traffic problem. Police starting a campaign to round up the cows that are roaming the streets. Pretty cool.

That's it for me. Fredricka Whitfield takes it from here.

FREDRICKA WHITFIELD, CNN ANCHOR: All right. Thanks so much, Suzanne. Have a great day.

MALVEAUX: You too.

WHITFIELD: Hello, everyone. Welcome to the CNN NEWSROOM. Happening right now, a frantic manhunt for these two Texas inmates. They scaled a barbed wire fence today forcing 15 nearby schools to lock down. Now a massive search is on for the suspects police are calling extremely dangerous.