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Republican Rift; Getting Answers For Glitches; Escaped Florida Inmates Caught; JPMorgan Could Face Massive Fine; Report: NSA Spied On French Phone Calls; Mexico Fires Back; Man With Knives Arrested At Kennedy Airport; President to Address Obamacare; Ted Cruz Tackles Obamacare; Shutdown Pulled Down GOP's numbers

Aired October 21, 2013 - 06:00   ET

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


KATE BOLDUAN, CNN ANCHOR: Let's begin this hour, though, with breaking news, those just-released poll numbers that may spell big trouble for the GOP heading into next year's midterm elections, and the new numbers, they are coming out just as Democrats prepare for their own bit of damage control. The president set to address those glitches plaguing the Obamacare roll-out at the White House today. Let's get more on all of this from senior White House correspondent Jim Acosta. Good morning, Jim.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good morning, Kate. That's right. A new CNN/ORC poll finds a majority of Americans are not happy with the Republican control of the House of Representatives, but the GOP pay have caught a big political break as you said the president is set to admit later today mistakes have been made with Obamacare.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): The shutdown ended days ago, but the hangover is still lingering, and it's bad news for Republicans. A new CNN/ORC poll finds just 38 percent of Americans believe GOP control of the House of Representatives is good for the country. More than half say it's a bad them. But it gets worse for House Speaker John Boehner.

A sizable majority of Americans say he should be replaced. Only 30 percent say he should stay. The numbers are slightly better for President Obama; 44 percent have confidence in the president versus 31 percent in Republicans in Congress. GOP leaders say it is blow back.

SENATOR MITCH MCCONNELL (R), KENTUCKY: A number of us were saying back in July that this strategy could not and would not work and, of course, it didn't. So there will not be another government shutdown. You can count on that.

ACOSTA: But the end of the budget brinkmanship has shifted the spotlight right where Republicans want it, on Obamacare. Later today, aides say the president will acknowledge the website's now infamous glitches and laying out solutions for fixing them. The pressure is on while the program has seen nearly a half million applications and 19 million visitors to healthcare.gov, the Obama administration admits the web site experience has been frustrating for many Americans. SENATOR JOHN MCCAIN (R), ARIZONA: It's been a fiasco. Send Air Force One out to Silicon Valley, load it up with smart people, bring them back to Washington, and fix this problem. It's ridiculous. Everybody knows that.

ACOSTA: Conservatives are calling for the resignation of Health and Human Services Secretary Kathleen Sebelius, saying she is resisting requests to testify on Capitol Hill even though she has time to go on "The Daily Show."

SENATOR TED CRUZ (R), TEXAS: Absolutely she should resign. Why? Because the program she has implemented, Obamacare, is a disaster.

REPRESENTATIVE NANCY PELOSI (D), HOUSE MINORITY LEADER: Ridiculous, but nonetheless, I do think what has happened is unacceptable, has to be fixed, and that is what will happen.

(END VIDEOTAPE)

ACOSTA: Now over the weekend, administration officials said they were bringing in experts from both the government and the private sector to fix Obamacare. But the administration also cautions that the program is much more than a website. That it's already providing consumer protections that did not exist before Obamacare.

Expect the president to repeat that message later today, but one key metric that the administration is not revealing, how many people have enrolled in Obamacare. The White House is still not revealing that information -- Kate.

BOLDUAN: Yes. Saying we won't get that number until November, but that's the number everyone is waiting for at this point. Jim, great to see you. Thank you so much.

Just ahead, a good reality check for you, what is really working and what is not in the new healthcare law. Also ahead, CNN goes one on one with Obamacare's probably biggest opponent at this point, Texas Senator Ted Cruz.

CHRIS CUOMO, CNN ANCHOR: Now, I want to tell you about the arrest of two escaped killers caught on video. The convicted murderers were captured over the weekend at a Florida hotel, but they managed to escape in a very unusual way, a way that may reveal a dangerous lapse in prison protocol.

CNN's Nick Valencia is live in Panama City, Florida this morning. Good morning, Nick. What do we know?

NICK VALENCIA, CNN CORRESPONDENT: Good morning, Chris. Joseph Jenkins and Charles Walker will be waking up in the Bay County Jail here behind me and investigators tell CNN that they are expecting more arrests as they are looking to exactly who helped them pull this thing off.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: My God, those are U.S. Marshals.

VALENCIA (voice-over): For the two convicted killers, this cell phone video shows the moment their man hunt ended, just 80 miles from where their escape began. Handcuffed and shackled, Joseph Jenkins and Charles Walker said little during their first court appearance after being arrested.

MARTY WEST, U.S. MARSHALL'S FUGITIVE TASK FORCE: We had information that they were here at the Coconut Grove Motor Inn.

VALENCIA: Officials tell CNN the two were waiting for a ride from Atlanta in this Panama City beach motel when they were busted. Unarmed, they were detained without incident. At a press conference on Sunday, Florida officials addressed the bureaucratic blunder. The two convicts serving life sentences were accidentally released after showing forged paperwork. Apparently, this had happened twice before. Only the inmates were caught before they got out.

MICHAEL CREWS, CORRECTIONS SECRETARY, FLORIDA DEPARTMENT OF CORRECTIONS: It is embarrassing. But my concentration at this point is, I think everyone else here is making sure that we come up with a process and a procedure that prohibits this from happening in the future.

VALENCIA: Law enforcement has launched an investigation to figure out how Jenkins and Walker duped the system and obtained the fake documents.

JERRY DAILEY, ENFORCEMENT COMMISSIONER, FLORIDA DEPARTMENT OF LAW: There is speculation, an underlying speculation, that there was a source where for certain a sum of money that these documents could be constructed for $8,000. Whether that is true or not will be determined.

VALENCIA: CNN legal analyst, Mark O'Mara says they must have had help.

MARK O'MARA, CNN LEGAL ANALYST: It has to be somebody on the inside. It has to be somebody in the courthouse, maybe even somebody in the state attorney's position, a secretary that can get that paperwork done.

VALENCIA: Standing at his father's grave, Robert Pugh chokes up. While his father's killer, Charles Walker, was on the run, he struggled reliving his family's nightmare.

ROECO PUGH III, VICTIM'S SON: He had no remorse when he killed our father in front of us the first time.

VALENCIA: Police are now promising to hold all who contributed accountable telling CNN that additional arrests are expected.

(END VIDEOTAPE)

VALENCIA: State officials say because of this incident, they will now require a judge to verify an inmate's early release. As for what's next for Walker and Jenkins, they got their next court appearance on Friday -- Kate.

BOLDAUN: All right, thank you so much for that.

Now, let's move and talk about some big money this morocco. JPMorgan could be paying a record $13 billion in fines to the Justice Department. The reported settlement follows an investigation into the bank's role in the 2008 financial crisis.

Christine Romans is here to talk more about this. So let's break this down. Of course, the question is what does this mean for JPMorgan and Jamie Dimon?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Jamie Dimon, this has been a very, very bad year. It breaks down to about $9 billion in fines and $4 billion in consumer relief, some op that will be loan modifications. They're not sure how that is going to work just yet. That's the numbers there.

Look, Jamie Dimon, someone who for those of us who covered him, he's someone many people thought could be a treasury secretary some day, now he is being made to pay for what are the worst offenses of the mortgage-backed security crisis.

Much of this is because they bought Bern Stern's Washington Mutual now, as a favor. Actually Jamie Dimon described it to the fed in the heat of the 2008 crisis, now they are having to pay up big time.

BOLDUAN: But paying up big time, you are talking a record penalty, $13 billion. It's still not over for them.

ROMANS: No, it looks as though we are told that Jamie Dimon would push there would not be any criminal investigation and the criminal investigation, settle the civil problem for $13 billion and end the criminal investigation. He did not get his way on that. Attorney General Eric Holder and folks in California, actually Sacramento, criminal investigation continues.

BOLDUAN: Much more to come on that. It's really interesting how far they have come. It started with JPMorgan offering up $1 billion to settle this. They are at 13.

ROMANS: The $13 billion is a lot of money and this is costing the bank all of this litigation.

BOLDUAN: Christine, thank you so much.

CUOMO: People say if you are a criminal, you are a criminal just because if you are rich, you have to pay like everybody else.

A lot of headlines this morning so let's get right to Michaela and the NSA is back in the news, not for good reason.

MICHAELA PEREIRA, CNN ANCHOR: Not for good reason, this morning France's foreign minister has summoned the U.S. ambassador to Paris over NSA spy allegations. A French newspaper reports that the NSA tapped more than 70 million phone calls in France over a one-month period. The paper cited documents provided by NSA leaker Edward Snowden.

Mexico lashing out against a new report from a German magazine claiming that the agency hacked into the public e-mail account of former President Felipe Calderon. Mexico's Foreign Ministry said in a statement that the practice is, quote, "unacceptable, illegitimate and against the law."

Dozens of people killed in Baghdad when a suicide bomber slammed his minibus into a cafe full of customers. Police and medics say at least 38 people died in that attack alone. Hospital officials say a total of at least 45 people died in sectarian violence in Iraq over the weekend.

A disturbing discovery at New York Kennedy Airport, security officials find a large number of knives and blades in a man's carry-on luggage. Timothy Schiavo Jr. was charged Saturday with two counts of criminal possession of a weapon. Police the 29-year-old from Long Island was carrying several scissors, lighters and matches.

New Jersey now the 14th state to recognize same-sex marriages. Couples began saying "I do" just after midnight. The State Supreme Court upholding a lower court ruling and handing defeat to Governor Chris Christie who wanted the marriages put on hold. Beth Asaro and Joanne Schailey were the first couple in the state to marry. They have been together 27 years.

A Jets fan caught on video allegedly punching a woman in the face during a brawl Sunday at Metlife Stadium. The Jets won in overtime over the Patriots. The video shows the male Jets fan being pulled away from the brawl before he was confronted by the female Patriots fan. That's when he hauls off and cocks her one. New Jersey state police are investigating. Returning to our Jets fans.

CUOMO: That's the worst.

PEREIRA: It's the worst. It's a game, it's a game.

CUOMO: Violating just about every rule there is.

PEREIRA: Every rule. It's a game.

BOLDUAN: Let's get over to Indra Petersons for a check of the weather. How is it looking on this Monday?

INDRA PETERSONS, AMS METEOROLOGIST: Maybe it's still warm to you guys. Cold to me, we are talking really cold this time. We are talking about cold fronts making their way across the country brining cold arctic air with it, where temperatures today are well below, especially around the Great Lakes. Take a look at it. There are three fronts out there. Look for some light showers around the gulf and also right around the Great Lakes.

Now, let's talk about, yes, the cold air that's coming in from an Alberta Clipper. So that will only reinforce the cold air that is already in place today. Now Alberta Clipper is dry. We don't look for a lot of precip or rain or even snow out of it. What we really look out are temperatures that look like this.

These are the highs today, Chicago, 49 degrees. That is 11 degrees below normal even for this time of the year. Kansas City 55, going towards tomorrow, we are still going to be talking about this cold air. Eventually, this cold air spreads off into the northeast. We will drop a good 15 degrees in the northeast by the middle of the week.

Other thing I want to talk to you about is we have Raymond, this is our first major hurricane out there in the Eastern Pacific currently release 120-mile-per-hour winds. Not expected to move ashore, but notice the outer the bands are bringing heavy rains to the region. We are still going to be talking even about isolated amounts of up to 8 inches as possible.

The good piece of news here is it's expected to move away from shore as it makes its way out in the next several days, but either way, the first major hurricane of the season, hard to believe we have been that lucky.

BOLDUAN: Moving towards the end of October. I like the sign of that. Thanks, Indra.

CUOMO: A little break on this Monday morning. When we come back, President Obama finally about to answer for all those Obamacare glitches, what will he say?

BOLDUAN: Plus one of Obamacare's biggest opponent, gets a hero's welcome in Texas and he isn't giving up on his fight. Our one on one with Senator Ted Cruz.

(COMMERCIAL BREAK)

CUOMO: Welcome back to NEW DAY. We hope your Monday is going good so far.

So we are three weeks into the Affordable Care Act. The Web site has had a trouble roll-out, period. President Obama is set to make his first major public remarks on Obamacare today. Officials say the site has 19 million unique visits.

But how many have actually signed up? That is proving harder to pen down.

CNN's Elizabeth Cohen is in Atlanta with a reality check.

Good morning, Elizabeth.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Good morning, Chris.

Chris, as you said, it's been a rocky road for healthcare.gov. Now, there were some fixes done to the site over the weekend, but they don't seem to be quite there yet.

(BEGIN VIDEOTAPE) COHEN (voice-over): If you've tried buying healthcare insurance on healthcare.gov, you probably had trouble using the Web site. It's plagued with glitches and the administration has yet to figure them all out.

(on camera): I'm now putting in my county I think for the fifth time.

(voice-over): It took me two weeks, trying it all times of day and night until I was finally able to log on and start filling out my application.

But the glitches continue. Every time I log on, for example --

(on camera): It keeps putting me back up here.

(voice-over): I have to fill out this same page again and again.

SEN. JOHN MCCAIN (R), ARIZONA: It's been a fiasco. Send Air Force One out to Silicon Valley, load it up with some smart people. Bring them back to Washington and fix this problem. It's ridiculous. Everybody knows that.

COHEN: The Department of Health and Human Services does seem to be trying. On Sunday, the team wrote, our team is bringing in some of the best and brightest from both inside and outside government to scrub in with the team and help improve healthcare.gov.

The administration also released one key figure, showing people have filed nearly half a million applications for health insurance so far.

But by CNN's own calculation, more than half of that total comes from the 14 states running their own Web sites, not healthcare.gov. In fact, just one state, New York, accounts for more than a quarter of all applications and, yes, they have their own Web site, too.

(END VIDEOTAPE)

COHEN: Now, if you look at the home page this morning for healthcare.gov, there is something new that you can click on. It says apply by phone. You can see it right there.

Now, I must say I have talked to these phone operators many, many times. They are very helpful. They do answer quite quickly -- Kate.

BOLDUAN: All right. Thank you so much, Elizabeth. We'll see what the president has to say about these glitches plaguing the system later today. Thank you.

So, the new health care law was also at the center of the debate that forces a 16-day government shutdown and leading the charge against it, Republican Senator Ted Cruz.

He may have lost the shutdown battle, but Cruz received a pretty warm welcome at home in Texas, still some real fears today that he is reigniting a war within the Republican Party over this.

Chief congressional correspondent Dana Bash went one-on-one with Chris, asking if he'll rule out another shutdown next year.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CHIEF CONGRESSIONAL CORRESPONDENT: Are you planning on doing this again, January 15th, when the current bill that was just passed to reopen the government when it finishes?

SEN. TED CRUZ (R), TEXAS: There will be time enough to talk about specific strategies, specific tactics. What I can tell you is that I think we need to keep as the top priority providing meaningful relief for all the millions of people.

BASH: But you're very deliberately not ruling it out?

CRUZ: What I'm saying is the top priority -- there are a lot of politicians in Washington that want to put Obamacare behind us, say OK, fine. No more. No more discussing Obamacare.

And you know what? The American people are not satisfied with that.

BASH: On a practical level, what is frustrating to many of your colleagues is they think that you are turning your ire on them instead of focusing on how to help elect more Republicans to do what you all want to do. And I know you said that you're not endorsing any primary candidates, but you are -- your tactics are being used as fundraising tools for the very groups that do fund those primary candidates.

CRUZ: Look, my ire is focused on Obamacare because it's not working and it's hurting the American people. And I don't think it's acceptable -- I'm not willing to go to the Texans who elected me and say, you are hurting because of Obamacare, I washed my hands, I'm not willing to stand up and fight. I'm not willing to tell my constituents and I am encouraging Senate Republicans to stand together for principle.

BASH: And those that you say have tarnished the brand, you have set the party back in efforts to maybe retake the Senate, maybe get in a position where a Republican can when the White House in 2016.

CRUZ: The single most damaging thing that has happened to Republicans for 2014 is all of the Senate Republicans attacking the House Republicans, attacking those pushing the effort to defund Obamacare, lining themselves up opposite the American people. Now, I'm hopeful that will change. I am hopeful there will be some time, some reflection and that Senate Republicans will come back to the principles they believe and they campaigned on. I am hopeful we will actually put action behind the campaign promises.

(END VIDEOTAPE)

BOLDUAN: All right, Dana, thank you so much for that great interview.

CUOMO: Now, in context from what we are hearing from the senator, as we take a break here, what we'll talk about when we come back is, how badly did the Republican Party hurt itself during the government shutdown. A new CNN poll finds out what you are thinking. We're going to break down out u all the numbers in a political gut check.

BOLDUAN: Also ahead, former Vice President Dick Cheney revealing in such a revealing interview on his life after a heart transplant, what he says his first words were after making it through the surgery to our Sanjay Gupta.

(COMMERCIAL BREAK)

BOLDUAN: Welcome back to NEW DAY. It is Monday, October 21st.

It's time for the political gut check in the morning.

New CNN polls released today, and they're showing how badly the government shutdown has really hurt Republicans in terms of public opinion.

CNN's chief national correspondent John King is here to break it all down for us.

So, John, this probably for many Republicans, especially in the House and Senate, these numbers are not going to be a huge surprise. I mean, for the time since Republicans won the majority in the House, Americans think that Republican control of the House is bad for the country.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: You will see, Kate, you just heard Senator Ted Cruz saying, 'I don't think this is my fault.' A lot of Republicans might be sending him these polling numbers. Look right there, 54 percent of Americans think Republican control of the House is bad for the country, 38 percent say it's a good thing.

Here's the number here: a majority, 54 percent, now say it's bad. If you look at that, a pretty consistent number since the Republicans took over, four in 10 Americans thought it was a bad. That's your general partisan breakdown of the country.

Now, you say a majority saying Republican control of the House is bad for the country. Look, the midterm election is a year away, plenty of time for the Republicans to work on the brand. But you can see there, they need -- let's use the term a bit of a makeover.

BOLDUAN: And House Speaker John Boehner didn't come out of this unscathed either, taking a hit in polling, even among conservatives, which I actually found a little surprising, because it was conservatives he stood with in this fight.

What's the message from him coming from that number?

KING: When you look at that number -- 63 percent of Americans overall say Boehner should be replaced. He's the country's highest ranking Republican. And look at that number there, the liberal number doesn't surprise you, the moderate number tells you losing a bit of the middle. But a majority of the conservatives, that's the base of the Republican Party, a majority of conservatives are unhappy with their leader. He is the national Republican Party leader right now. So why are they unhappy? Some of them probably wish he did more to defund Obamacare. Some probably look more broadly at the Republican agenda and say, why can't we get our priorities through, even though there is divided government.

So again, a long way to the government. The de facto nationally and the Republican brand have taken a bit of a beating here, they've got some work to do. Mid-terms almost always, Kate, are about the president and his party and his agenda. The Republicans say that's a warning sign.

BOLDUAN: It's still enough time before the mid-terms and a longer period of time before the next presidential election. But Hillary Clinton back on the campaign trail. For the very first time, something for a long time friend and confident, Terry McAuliffe, who is running for governor of Virginia, they're close personal relationship aside, why is she taking this the opportunity to finally get back on the campaign trail do you think?

KING: Well, this is a case where personal loyalty and your own personal ambition go hand-in-hand. Virginia is a critical swing state. For so long, Virginia was a Republican state. President Obama carried it twice. In 2008 and 2012, when you look at the electoral map and you say, how do the Republicans take back the presidency? It is almost impossible to get to a Republican victory without taking the state of Virginia.

So what is Hillary Clinton doing? You're right, she's helping a long- time friend. Bill Clinton raised a lot of money thanks to Terry McAuliffe. So he'll be on the trail as well.

She is helping a friend. But she is also helping herself. If you look at the polls in the Virginia governor's race, Terry McAuliffe has consistently been ahead for the closing weeks of this company. But there is a big question about energy, intensity, especially among women voters. So if Hillary Clinton could prove she can help him turn out some votes, it would a good sign for her going forward as she has to make her big decision.

BOLDUAN: Right. Exactly. Obviously, you can't take too much from one message, one speech she is making on the campaign trail.

What was she hitting on? Are we seeing certain campaign themes we might see later on come up in this speech?

KING: I do think you see the outlines of any Democratic campaign. But certainly the Clinton campaign, which is a direct appeal to women, number one, economic fairness, number two, and the "who is on your side" campaign.

A bit of -- actually a bit -- she borrows a bit from her husband in that degree. We will fight for you. That Terry will fight for you if you elect him governor. I would fight for you. She is ready not quite yet, but stressing issues of economic fairness and making a direct appeal to why government matters, and why -- especially women voters in the northern Virginia area will be critical in this race. This is a test of really whether she can transfer personal popularity into some intensity for another candidate.

BOLDUAN: All right. John, great to see you. Thank you.

KING: Happy Monday.

BOLDUAN: Happy Monday.

I was in -- they put me -- you know, we were all over the country on election night 2012. I was in Virginia, one of the key swing counties to track how it went that evening. It went quicker to Obama than they thought. But. But.

CUOMO: You never know.

BOLDUAN: You never know.

CUOMO: You never know. You got to watch it all the time. It will change now 2009 now and the budget. That's why we got to track along the way. A good thing we got John King and you.

BOLDUAN: And you.

CUOMO: A lot of other headlines as well. So, let's get right to Michaela -- Mick.

PEREIRA: Right.

Good morning to everyone at home this morning.

Brand-new cell phone video showing the moments U.S. Marshals stormed the motel room where two inmates in Florida have been holed up. Charles Walker and Joseph Jenkins are now back in custody. They're being held on one count each of escape. They are due back in court on Friday.

The Department of Corrections mistakenly released Walker and Jenkins after receiving forged documents.

Greek police trying to solve the mystery of this little girl. She's Maria. She's a 4-year-old, found in Aroma, also known a gypsy community. Thousands of calls have poured into the charity that's now taking care of her, including promising leads from here in the United States.

When police first saw her, they were suspicious, because as you can see, the little girl is blond, with fair skin and does not look like the man and woman claiming to be her parents. The DNA testing proved they were not related. The couple is in custody of police and are in custody today.

It's more than two weeks since anyone has seen a missing 14-year-old boy with autism. Avonte Oquendo, his mother, Vanessa Fontaine, she says she believes someone took him against his will and is vowing to find him. He was last seen walking out of his school in Queens in New York City.

Three teens arrested after Baltimore police found seven boxes of stolen ammunition inside their park car. Police say the ammo belongs to U.S. Air Marshal. Police stumbled upon the stash after checking on the car, which appeared to have hit a curve.