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ANDERSON COOPER 360 DEGREES

Spying on Allies; Superstorm Sandy Survivors Trying to Rebuild; Manhunt for Escaped Inmates; Parts Of Texas Abortion Law Struck Down; U.S.: Drone Strike Kills Two Suspected Terrorists; Crash In China's Capital Kills At Least Five; Residents Angry That "Pillowcase Rapist" May Soon Move To Lake, Los Angeles, California; Family Of "American Sniper" Chris Kyle

Aired October 28, 2013 - 20:00   ET

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


WOLF BLITZER, CNN ANCHOR: And the ongoing manhunt.

First up tonight, the phone spying scandal and the Obamacare Web site mess. What did President Obama know about each and what if anything does it say about how he governs? On many occasions and many subjects, the president is trying to project an image of hands-on leadership and personal accountability.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The buck will stop with me. The buck will stop with me. The buck stops with me. I'm the president and the buck stops with me. The buck stops with me. Ultimately the buck stops with me.

(END VIDEO CLIP)

BLITZER: Tonight where precisely the buck stops is somewhat less than clear. When it comes to the long-standing NSA phone spying on German chancellor Angela Merkel and other world leaders the "Wall Street Journal" reports the president did not know about it until last summer. A senior administration official backs it up. Another official, though, tells us he was briefed on the details of what the NSA was doing, even if he was not told whose phone was being tapped.

And late today the Democrat Senator Dianne Feinstein who chairs the Senate intelligence committee weighed in with this. And I am quoting now. "It is my understanding that President Obama was not aware Chancellor Merkel's communications were being collected since 2002. That is a big problem."

She also says she wasn't briefed either and is calling for a total review of all intelligence programs. Others are being no less blunt and the White House is in deep damage control mode right now.

Our chief national security correspondent Jim Sciutto and our senior White House correspondent Jim Acosta are joining us.

Jim, first to you. A tough statement from the chairman, Dianne Feinstein. What's the White House's reaction? JIM ACOSTA, CNN NATIONAL POLITICAL CORRESPONDENT: Well, the White House's reaction in part, Wolf, is that the senator is correct, that the president did not know about this foreign surveillance program aimed at world leaders.

But they are taking issue, Wolf, with one thing that the senator did say in that statement. And that is that these collection activities aimed at foreign leaders will not continue. I talked to a senior administration official earlier this evening, Wolf, who says that part of the senator's statement is not accurate. That some of these programs are being changed on an individual basis.

But that in large part, these policies, these programs are continuing for the time -- time being while all of this is being reviewed. And as you mentioned, Wolf, the folks up on Capitol Hill want to take a look at this. Senator Feinstein, the intelligence community, they want to take a look at this.

But the White House maintains they are conducting their own internal review right now. She'd be done by the end of the year so there may be some more changes coming by the end of the year -- Wolf.

BLITZER: Jim Sciutto, the White House is adamant the president did not know about the eavesdropping on the German chancellor. But President Obama did know about certain aspects of the program, right?

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: That's right. What the administration says, in effect, is that the president set the priorities and other U.S. official telling us that he also would have been briefed on the framework of this program which may have included that it targeted allied countries abroad and even possibly their leaders without being told of the specific targets. That's the delicate square that the administration is trying to circle here.

I spoke with senior administration official earlier today who said that this does not mean that the -- NSA necessarily was going rogue here but that the White House understands it needs better guidance on policy priorities here so that they don't go beyond what the president approved of or was aware of.

BLITZER: Jim Sciutto, how concerned are U.S. officials about the diplomatic repercussions of these allegations?

SCIUTTO: Well, they're very concerned. You have a delegation on the hill today from the EU speaking about these very issues. I spoke to one of the members of the delegation who said that people in European capitol, leaders included, are confused, they're concerned, they're fearful of this kind of spying. So they want explanations.

I spoke to another former U.S. official who told me that, you know, the U.S. has listing posts in these countries and they're called diplomats. People with relationships in those countries to speak to their counterparts. And this is the kind of information that those countries want to share. It's about fighting terrorism. So that's the much better way many officials even inside the -- administration say going forward to gather this kind of information. BLITZER: And Jim Acosta, the White House has to also contend with what is clearly a disastrous rollout of the Obamacare Web site. The president apparently was totally aware of the major problems with that until a few days after the launch. Once again, a major disruption over the weekend, you know.

So what can you tell us about this part of the story?

ACOSTA: Well, Health and Human Services, their folks are now saying, Wolf, that that data services hub over at Teramark, which is a subsidiary of Verizon, that provides some of the capabilities to the healthcare.gov Web site. For application and enrollment features that that data services hub is back up and running again. And they are continuing to work on the larger issues with the Obamacare Web site. And that is all of the millions of people trying to get in there and file applications and get enrolled for coverage.

But meanwhile, Wolf, there is a coming issue on the horizon and that is people who are starting to get notices letting them know that their insurance plans that they have now are being cancelled or being modified. And in many cases, that their rates are going to be going up. People are starting to anecdotally complain about this. The White House is starting to respond by, saying, well, yes, this is going to happen to people because of new requirements that are coming into effect next year.

But, Wolf, I talked to an insurance industry source earlier this evening who said that this is going to be a problem for lots of Americans out there. That they're going to see modifications made to their plans, in some cases, cancellations are going to happen and that essentially a lot of Americans out there are just going to have to roll through the punches.

Why is this important? Because the president has said already many times over that if you like your plan you can change it. But it seems according to this insurance industry insiders -- and what is happening right now just on a large scale through the Obamacare program that the president should have never used those words -- Wolf.

BLITZER: Yes, the president repeatedly said if you like your plan, you can keep your plan. If you like your doctor, you can keep your doctor, not necessarily happening right now across the board.

Jim Acosta, Jim Sciutto, guys, thanks very much.

Let's get some more now on the "Raw Politics," our CNN political commentators are joining us, the "New York Times" op-ed columnist Ross Douthat and Charles Blow.

Charles, on the NSA eavesdropping program, it's just surprising to me and a lot of other folks the president would not know about a program that involves spying on top allies, listening in to the phone conversations of Angela Merkel, the chancellor, from the fact that was going on.

Is there any reason for him not to know this kind of stuff? CHARLES BLOW, CNN POLITICAL COMMENTATOR: Well, I think, you know, the bigger issue here is the kind of credible scrawl that I think should disturb us about the NSA and -- you know, they're basically in a position now where if they can do it, they are doing it. It's kind of a Hoover-esque moment where collection of information on people.

Whether or not the president would know everything that they're doing, since they're doing so much, I'm not sure that that is the proper expectation. But the -- you know, basic kind of rule of management is never let the boss get caught off guard. The boss is caught off guard here. That is a problem for -- that is a management problem and they're going to have to figure that management problem out, and wherever that broke down.

But, you know, the idea that the president would know everything, everyone who is being wiretapped. I don't -- I don't think that anyone at this point knows. I think the fact that we're having reviews at this point of what is actually happening with the NSA is important for the country because I don't think that we have a great handle on what's happening.

BLITZER: Absolutely -- you're absolutely right, we're learning a great deal every single day.

Ross, you say the political calculation is understandable here. What do you mean by that?

ROSS DOUTHAT, CNN POLITICAL COMMENTATOR: Well, I think that when you're dealing -- I mean, the NSA is particular -- a particular case because we've had so much fear recently over potential domestic intelligence gathering. But it is pretty normal when you're dealing with sort of intelligence issues for the president to maintain a certain level of plausible deniability about spying on allies, which is something that we do. It's something that our allies do. It's something, you know, pretty much everybody does.

And obviously in this specific case you're dealing with the NSA and you're dealing with sort of the specter of a new kind of spy craft. But I think it's -- it is normal whether or not the president actually knew. It's normal for them to say that he didn't. I think it's unfortunate for the White House that this is happening at the same moment as them having to say oh, and also the president didn't know about these massive problems with the Web site, that was essential to -- essential to his central domestic policy priority.

Because part of what happens here is that then the question becomes, well, why do the people who failed to keep him in the loop still have their jobs? And this is obviously a question with Kathleen Sebelius. It becomes potentially more of a question with General Alexander, with Director Clapper, with these figures in the national security bureaucracy as well. So it's -- but the confluence of the two, I think, makes this a bigger and more glaring issue for sort of the president's credibility.

BLOW: Right, but unfortunate, unfortunate but also just kind of coincidental, right? So, I mean, I think -- I don't think that we connect these two things and say oh, this White House, this president wants to be in the dark about things, this president is so hands on.

DOUTHAT: I'm just --

(CROSSTALK)

DOUTHAT: I'm just trying to imagine what Charles would say about this confluence if George W. Bush were in the White House.

BLOW: No, no. Look, look -- I'm going to say -- listen. I think that these two things are actually in fact separate things. I think, first, they're completely different agencies, they're completely different timelines. The NSA thing has been happening over a very long period of time. The Web site issues happened over a much shorter period of time when they were -- when they were rolling it out.

The government was shut down. The president was distracted by the idea of trying not to let the country go into default.

(CROSSTALK)

BLOW: There is no ah, come on, Ross.

DOUTHAT: Sorry.

(LAUGHTER)

BLOW: But I think -- but I think, you know, they're kind of separate things. But I think you're right that, you know, you take your lumps because they do happen at the same time. And people will make -- draw a straight line between the two even if I don't think that they should.

BLITZER: Does it raise the broader question, though, Charles, that the president is out of touch?

BLOW: That's what I was just trying to get at. I just don't get that sense, but I do believe that whenever there is something that could be embarrassing, you know, your underlings have a responsibility to make sure that you are covered and make sure that you understand that things are happening and you're in the loop.

That is a problem in these particular cases, and that -- there is no getting around that. It is an embarrassment. They happened to happen at about the same time. That means that people will make connections even if those connections are not necessarily the most logical connections to make.

(CROSSTALK)

DOUTHAT: I do not --

BLOW: I do not believe this is necessarily a president who is out of the loop.

DOUTHAT: I should say that I -- as I said, I agree with Charles in a sense that these are separate issues, that if they weren't happening at the same time you would understand again in the case of Spy Craft, why the president wants to maintain deniability. I do -- I do want to stress, though, that in the case of the health care Web site, if it's actually true, and I don't really believe it is, that the president had no idea that there were any problems before launch, then that is a massive indictment of frankly the entire -- the entire White House. Because --

BLOW: Wait a minute.

DOUTHAT: This is not a -- this is not a case where, this is not a case where the Web site, despite what some people have said, is separable from the policy. The Web site is the policy. The policy doesn't work without the Web site and everyone in the White House knows that. So it is -- again it's frankly unimaginable to me that he didn't have some sense. And if he really didn't, then people should be resigning.

BLOW: It's completely imagined. Did you -- did you listen to the testimony the other day? You're saying that no one in this entire chain was actually taking control and taking responsibility. Everyone was saying that their particular part of the thing was working and -- no responsibility --

BLITZER: All right.

BLOW -- to pass along the fact that it wasn't working. I think it's a mess, and I think that the --

(CROSSTALK)

DOUTHAT: I have this dim memory of seeing --

BLITZER: All right.

DOUTHAT: -- clips of the president say the buck stops with me over and over again. But I guess we disagree --

BLITZER: Ross and Charles, guys, thanks very much.

DOUTHAT: Thank you.

BLITZER: The conversation will continue.

Up next, the people who are still hurting one year and tens of billions of dollars -- federal dollars since the Superstorm Sandy came ashore. We're going to introduce you to a remarkable family who say their efforts to rebuild are now stuck in a government catch 22.

And later, a daring jail break and the manhunt right now for two dangerous inmates.

(COMMERCIAL BREAK)

BLITZER: A year ago tonight, the most densely populated part of the country was bracing for one of the biggest storms ever. Superstorm Sandy, a tropical storm wrapped in a nor'easter, surrounded by a blizzard. High winds, heavy rain, snow, a storm surge, the likes of which East Coast cities had not seen in modern memory or in some cases, ever.

And as these then and now photos show, the damage lingers in so many places but is almost undetectable elsewhere. That Jersey shore rollercoaster surrounded by the Atlantic has yet to be restored. Just inland, the town of Sea Side Heights turned into a grid, not of streets but canals. The rebuilding there still under way.

In Brooklyn, that iconic image of the battery tunnel, inundated, now just a memory. It's high and dry, but a lot of repairs still being done on the New York subways, including the 8 Train our to rockaway, and just west of it Breezy Point where more than 100 homes burned.

Then there are the people of Staten Island. Families like the Cameradas, a year ago as you can see they were living in horrific conditions, no water, no power, no heat, little hope. Now as they struggle to rebuild their home and their lives they find themselves in a different kind of nightmare.

360's Gary Tuchman reports.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): From the outside, Nick and Diane Camerada's house in Staten Island, New York, looks OK. They received money from FEMA to fix the exterior after Hurricane Sandy.

(On camera): You still have some mess out here, but let's go inside.

(Voice-over): Inside is a whole different story.

NICK CAMERADA, SUPERSTORM SANDY VICTIM: This was --

DIANE CAMERADA, SUPERSTORM SANDY VICTIM: It's our foyer. We had pictures of the kids in different stages of their lives.

N. CAMERADA: The whole wall was just pictures.

D. CAMERADA: The whole wall was all pictures.

TUCHMAN: One year later, the lower level of the Cameradas' house is still devastated.

D. CAMERADA: This was a living room area. We had big --

N. CAMERADA: Big cabinet with the TV.

D. CAMERADA: With the television. Couch.

N. CAMERADA: All my wife's crystal collection.

D. CAMERADA: Crystal collection.

N. CAMERADA: The cabinets actually just flowed and it fell over. Everything was just destroyed.

TUCHMAN: So why does it still look this way? Sadly, their story is all too common after a disaster of this kind. To finance further repair to their home, the Cameradas requested a low interest government loan.

N. CAMERADA: worked my whole entire life. I paid my taxes. You know, I'm your typical middle class American.

TUCHMAN: The Cameradas said they were told by the government they could get the loan, but only if they got flood insurance first. But the family says they can't afford flood insurance because the elevation of their home is so low it drives the premiums up.

(On camera): So they're saying if you have flood insurance, we'll give you a loan. You can't afford the flood insurance. If you raise the house, it's cheaper but you can't afford to raise the house.

N. CAMERADA: Right.

TUCHMAN (voice-over): A catch 22 that many disaster victims find themselves in. But what makes the Cameradas different is that they talked to President Barack Obama about it. You can see the meeting on this YouTube video. On November 15th 2012. Two and a half weeks after Sandy hit. The president came to Staten Island, met both Cameradas and said --

OBAMA: Some of this is going to be tough. But here's what -- my commitments to you is, I'm going to stay on it. I'm not going to be a stranger and suddenly forget all about it.

TUCHMAN: The Cameradas know the president is a busy guy. But they don't believe he has stayed on it.

N. CAMERADA: You know, you hold the president to that because that's the only hope you got.

TUCHMAN: For now, the Cameradas and their four children continue to hope for a solution they can afford, while remaining in their heavily damaged home.

D. CAMERADA: I don't have time to think about suffering because just talking about it brings about raw emotions. Sorry.

TUCHMAN (on camera): It's OK.

N. CAMERADA: My wife is what is holding this family together.

TUCHMAN (voice-over): Dianne made a plea to Barack Obama on that day.

D. CAMERADA: Don't forget about us.

OBAMA: That's my point, that's why I came here.

TUCHMAN: A plea the Cameradas hope the president still remembers.

(END VIDEOTAPE)

BLITZER: Gary Tuchman is joining us now from Staten Island.

Gary, has the Cameradas considered selling their house and property and starting over somewhere else?

TUCHMAN: The Cameradas would love to sell this house but nobody wants to buy a heavily damaged house. As far as the property goes in an area that's been decimated by a super storm, the only people looking for property are people looking for fire sales. So they can't afford to sell it because they can't get enough. But they also can't afford to keep it. It's a very difficult situation for them.

BLITZER: As you say, a catch 22, a really sad one.

Gary, thanks for that report.

One of the staunchest advocates for Sandy survivors is the New York Congressman Peter King who joins us tonight.

Congressman King, one year later, we're hearing from a lot of people who are still stuck in terrible circumstances. They're unable to regain the financial footing. They're unable to rebuild their homes and businesses. They're stuck in this catch 22 situation when it comes to government loans and flood insurance.

Here is the question. Why is there still such a huge problem a year after Sandy helping these folks?

REP. PETER KING (R), NEW YORK: Well, my district was hit particularly hard. And my office, we work full time really trying to work with many of the people who are still having problems.

Let me just put one positive note on this. An awful lot of progress has been made. Many people have gotten significant amounts of money, certainly in my district. Also, for instance, a sewage treatment plant is being rebuilt. Local government is getting reimbursed from the tremendous amounts of money that were laid -- that were laid out, which is going to certainly help people with their property taxes.

Much of the slowdown, if you will, is because first of all it took Congress almost three months to act. And then after that you had 60 days where the government had to solicit opinions. And also a lot of what they're trying to do is to make sure there is no waste of money, that the claims are proper.

And, you know, we try to work with FEMA, we work with the SPA, we did for a while. And I was working with what's called New York Rising in New York, which actually administering the funds. And I think it is speeding up more than it had been. And really, it took a while for again everything to be approved at the federal level, then for the states to come in. And FEMA has been giving money all along, but a lot more is needed.

So all I can say is that the process is speeding up. For anyone who's of their home as a number of my constituents are, it is still a problem. But we are far, far ahead of where we were just a year ago.

I was at a commemoration event that was held yesterday in Lindenhurst, which was particularly devastated and my district, in talking with the people. And again, a number of them lost a lot of their homes. A number of them still have damage. But on the other hand, a good number of back end. So this is -- this was the worst storm we had really in the history of New York, over $60, $70 billion worth of damage was done.

So you combine the New York/New Jersey area. So all I can say is that there is no issue that's more important to my office. We're working with these people on a regular basis who have been hit so hard. And progress is being made. I think we're going to see that progress going ahead exponentially, but again, we can't let up until everyone has been taken care of.

BLITZER: Let's hope you're right. The group Taxpayers for Common Sense says according to its review, Congressman, that less than 11 percent of the $58 billion appropriated for relief has actually, in their words, gone out the door.

First of all, are you aware of this report? I assume if you are, that is of concern to you.

KING: It is, Wolf, but let's keep in mind. If the money was being spent too quickly those people would be yelling about that. The fact is every precaution is being built in here to make sure that the money is properly spent, that none of it is being wasted or going to fraudulent claims. Also, a lot of that money is going to mitigate, to have construction to prevent damage in the future -- from future storms.

And in that case, they're working with the local governments, with the mayors, with the county executives, with the governors. Also local environmental and civic groups to make sure that they don't just put good money after bad. And so that's -- I think a lot of this really is because they're being very prudent as to how the money is spent. And also to make sure that -- that if we have another Sandy in four or five or six years that we don't have the same type of damage.

So, again, when they're talking about the money not being spent fast enough, I would say you know, the other side of that is that means the money is being spent very carefully and prudently.

BLITZER: Congressman Peter King, thanks very much for joining us.

KING: Wolf, thank you.

BLITZER: For more on the story go to CNN.com.

Coming up, four inmates escaped from an Oklahoma jail. Two have now been caught, but two others are still on the loose. The latest on the manhunt and how they managed to escape, that's next.

And later, a man who admitted raping dozens of women is about to be released from a state mental hospital in California. And the residents of the community where he may be living after that, they are worried.

We'll take you there when 360 continues.

(COMMERCIAL BREAK)

BLITZER: A manhunt is now under way in Oklahoma after four inmates escaped from a county jail by prying open a hatch in the ceiling of a shower. Two of the inmates were caught when they were spotted walking into a convenience store. Two others still at large. One who was convicted on drug charges and one was in jail waiting to be tried on a federal gun charge.

George Howell is joining us now with the latest.

George, this escape sounds like it was ripped from a movie. How did they pull it off?

GEORGE HOWELL, CNN CORRESPONDENT: Wolf, so you have to consider there were many different inmates in this detention center, many of them waiting to be shipped off to a prison. But these four inmates, they had a different plan. Their focus was on this maintenance hatch, just above the shower. They pushed that door forward and they were able to get into the ceiling area. They followed a crawl space to where the plumbing and air conditioning sit, and they pushed through cement blocks to get into a room, Wolf, where there was an unlocked door, they walked right through.

BLITZER: You know, and then they were caught, at least two of them, as they were spotted at a convenience store. How did that happen?

HOWELL: Well, you know that's all due to a watchful eye of the investigator with the Grady County Attorney's Office. So he was in a town just about 20 miles away from Chickasha, Oklahoma. He spotted these two men. He noticed their clothes, dirty, wet, and he followed them into a convenience store. That's when he also called Chickasha Police, they arrived, they chased the men and eventually caught them. But again, there is concern, you know, about these other two men and where they could be.

BLITZER: Are there any leads on where these other two inmates might be? They're obviously still on the run.

HOWELL: Right, you know, we talked to authorities about that. Given that they caught, you know, the first two in Chickasha, there is some belief among authorities that the other two, the final two, could still be in that Chickasha area.

Keep in mind, Wolf, they are considered armed and dangerous, very dangerous men that are out there but investigators are doing their best, obviously, to search this area to find them and bring them back to where they escaped.

BLITZER: If they find them, let us know, George. Thanks very much.

George Howell, on the scene.

There's a lot more happening tonight. Isha Sesay has the "360 Bulletin" -- Isha.

ISHA SESAY, CNN CORRESPONDENT: Wolf, a federal judge throughout key parts of the new Texas abortion law, is set to kick in tomorrow. The law was the subject of angry debate. The judge struck down requirements about doctor-admitting privileges at hospitals and partially blocked new restrictions on pregnancy-ending drugs.

U.S. officials confirm that a military drone strike in Somalia has killed two suspected members of the terror group, al Shabaab, which claimed responsibility for the deadly mall attack in Kenya.

A jeep plowed into Beijing's crowded (inaudible) Square hitting the guard rail and bursting into flames. Chinese state media reports that at least five people were killed and more than three dozen were injured. The cause was unknown.

And Wolf, check this out, this animal called the blotch bolder frog is one of three newly discovered species found living in the remote part of Northern Australia. And scientists also discovered this fellow. It hunts for insects in daylight. And also this to show you, this creature, which is hard to make it due to camouflage, called the leaf- tailed gecko. It hides during the day and hunts at night.

BLITZER: Pretty cool, I don't even know what that is -- all right, Isha, thank you very much.

Up next, the residents of one California town say they don't want this man, known as the pillowcase rapist, to move into their community. We'll examine their rights versus his.

Also ahead, Anderson's interview with the family of Chris Kyle, the former Navy SEAL considered the best sniper in the U.S. military and who was murdered allegedly by another vet.

(COMMERCIAL BREAK)

BLITZER: Crime and punishment tonight, there is anger in a residential community north of Los Angeles where a man dubbed the "Pillowcase Rapist" may soon be moving in. Sometime in the next few months, 62-year-old Christopher Hubbard could be released from the state mental hospital where he has been held for nearly 20 years.

California prosecutors say he sexually assaulted about 40 women. On Friday, a state judge ruled that Hubbard could move to the town of Lake, Los Angeles when he gets out of prison. The residents are not only furious, they are fearful. They say a lot of children and they don't want Hubbard anywhere near their community. Kyung Lah has more.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT (voice-over): Here in the dusty high desert of Lake, Los Angeles, two hours from downtown L.A. is the place where one of California's most infamous rapists will soon be calling home.

(on camera): Can you see the house from your driveway? UNIDENTIFIED FEMALE: Yes, it is actually over there.

LAH (voice-over): Just two doors down from Nicole Stone.

(on camera): This is the house?

NICHOLE STONE, NEIGHBOR: Yes. I wouldn't even want to come home if he moved in. I wouldn't even want to risk being here and how is that fair to me, to be forced not to come home out of fear from him.

LAH (voice-over): Fear and Stone was not even alive during Christopher Hubbard's reign of terror. It was the '70s and '80s when he was known as the pillowcase rapist, after his practice of covering their heads with a pillowcase. The serial rapist was first convicted of assaulting dozens of women. Hubbard was first arrested in the early '70s. He later admitted to raping almost two dozen women throughout the state over a three-year period.

(on camera): He admitted in court that he drove around neighborhoods, looking for open garage doors indicating husbands had left for work. He looked for toys believing their mothers would protect their children and fight less. He served six years behind bars and was released in 1979. Prosecutors say he then raped another 23 women.

(voice-over): After serving two more prison sentences for rape and burglary, he was paroled in 1993, part of that parole included a psychological evaluation, which resulted in his parole being revoked. He was sent to a state mental hospital. Psychiatrists testified that Hubbard had a mental condition, paraphilia with non-consenting adults with a high risk of reoffending. Earlier this year, Hubbard petitioned for his conditional release.

UNIDENTIFIED MALE: It sent a shock of fear throughout the community.

LAH: Los Angeles County Board Supervisor Mike Antonovich remembers the "Pillowcase Rapist," and was stunned to learn that a judge was releasing him to his very own county.

(on camera): Will this community be protected from this man?

MIKE ANTONOVICH, LOS ANGELES COUNTY BOARD OF SUPERVISORS: There is no way you can protect the community. You don't have 24/7 protection. He will be living in a cage, that is the problem and that is how rapists attack. That's how he attacked in the past.

LAH (voice-over): So how is it that Hubbard can be released here in a neighborhood of young families? There is a school, but farther away than the 2,000 feet minimum required by California law. There is also a park, but again, just slightly farther than 2,000 feet. This is, as the judge said in the State of California, an appropriate place for a man who has done his time.

UNIDENTIFIED MALE: I don't think it is fair or right.

LAH: The residents of neighboring Palmdale are outraged, disagreeing with the judge saying that Hubbard has never lived here. (on camera): If you have served your time, shouldn't you be allowed to live?

JOHN MLYNAR, PALMDALE CITY SPOKESMAN: Yes, but why in a community you have no ties with?

LAH: Under state release rules, Hubbard will wear an electronic monitor. He has other limits including a curfew, no access to driving a car, and weekly psychologist visits, but that is not enough for his new neighbors.

(on camera): How does that make you feel as a young woman living close?

STONE: Not safe, not for me or for my community. Not for anybody.

(END VIDEOTAPE)

BLITZER: Kyung Lah is joining us now. Kyung, is this all over? Can the residents do anything about this?

LAH: It is not quite over. There is a brief period of time until November 29th when the residents can write in. They can phone in. They can e-mail their complaints and there is actually going to be a public hearing in early December as to whether or not he actually should move in here. And Wolf, I can tell from you the Facebook page, what I'm hearing from the local leaders so far the response has been overwhelming.

BLITZER: What about the owner of the home where he will be living? What does he have to say?

LAH: You know, this is where it gets interesting. I spoke to the owner's son, he said he had no idea this was the sort of person who would be moving into their neighborhood. He said he loves their neighbors and doesn't want to do anything to the neighborhood, but he is not sure there is anything they can do. They are exploring their options.

BLITZER: Kyung Lah, thanks very much. Let's dig a little bit deeper on this case. We're joined by CNN legal analyst, Sunny Hostin, a former federal prosecutor, who brought sexual predators to trial and criminal defense attorney, Danny Cevallos. Guys, thanks very much. Sunny, the residents of this neighborhood obviously upset. You can't blame them. Do they have a legal recourse?

SUNNY HOSTIN, CNN LEGAL ANALYST: You know, I don't think that they have legal recourse. I think certainly the government has almost exhausted all legal recourse. But as Kyung Lah said, certainly they can wage their complaints. They have about 45 days to do that. There will be a public hearing December 4th and perhaps, Wolf, the judge will reconsider his decision.

But I have to tell you what is so shocking to me, especially somebody who has tried these types of cases, these violent sexual predators. In today's legal system they would be put away for life because we know they cannot be rehabilitated or put back into society. There is just such a high rate of recidivisms that they have to be kept in a prison or mental hospital.

They can't be reintroduced into society. So this predator really just falls into this really weird space where you have psychologists saying he has done his time and is ready to be reintroduced into society. I can tell you he will re-offend again. He can't be put back into society.

BLITZER: Danny, Hubbard was actually the first offender committed under California sexually violent predator laws and to a state hospital you say it is a very unique area of the law, how so?

DANNY CEVALLOS, CRIMINAL DEFENSE ATTORNEY: It is, and here is why. What people need to understand is that the SVPA, the Sexually Violent Predator Act, in all of the states they take somebody near the end of their sentence, the end of serving their obligation to society and essentially adding on potentially indefinitely an additional term of incarceration, although it is really called a civil commitment.

So in essence, Hubbard and others like him are effectively sentenced after they're done serving their sentence and it is interesting, only because in society this is a unique kind of crime. We're willing to say with this kind of crime there is such a high rate of recidivism, because we have this fear of a future crime.

You really wouldn't see it if somebody was a three-time bank robber or assault -- we wouldn't commit them. But this kind of crime, incredibly high rate of recidivism, for that reason we have special rules for special offenders.

BLITZER: Sunny, as you alluded, this guy initially admitted to raping almost two dozen women. He was released in '79 after serving only six years in jail. He then committed dozens of more rapes, was sent back to jail. That first sentence, it seems it was extremely light. You admit raping all of these women. You get six years in jail. Doesn't that seem like a pretty light sentence?

HOSTIN: It is, Wolf. It is outrageous, but I think again in terms of law enforcement and prosecutors, we understand these types of criminals much better now. There have been a lot of studies and we know that they re-offend. We know it is extremely difficult if not impossible to rehabilitate them. So had these crimes happened let's say post-'95 or 6, he would be in prison for the rest of his life.

Because today's sexual offenders, violent sexual offenders get put away for life. Unfortunately, for this community, that is just not the case. We just didn't -- I think know enough about these types of criminals back then.

BLITZER: Danny, there is very much a not in my own back yard attitude about these kinds of cases, understandably. So is the law clear when it comes to balancing people's rights to protect themselves from a predator with ensuring that a person released is treated equitably?

CEVALLOS: Yes, it is interesting you bring that up, wolf, because as a society we have decided that these offenders, we'll post their names, the government will post their names to a website, to the public, and yet we act surprised when the neighbors are up in arms over it. We essentially put the information out there and the resulting action is predictable.

BLITZER: It is pretty shocking to the folks who are living in that neighborhood knowing that a guy like this will live there. So it is totally understandable they want to change it if they can. We'll update our viewers as we know more. Danny Cevallos and Sunny Hostin, guys, thanks very much.

Just ahead, the widow and brother of a former Navy seal sniper, Chris Kyle. They are now speaking out about the man they love and miss, and his tragic death. What they told Anderson about the troubled vet accused of murdering Kyle. That is next.

(COMMERCIAL BREAK)

BLITZER: A former Marine awaiting trial for murder in Texas has said he suffers from PTSD. Eddy Ray Roth is accused of murdering two fellow veterans who were trying to help him, gunning them down at a shooting range. These psychological issues are expected to be a major focus in the trial. One of his alleged victims, former Navy SEAL sniper Chris Kyle, was a legend among the SEALs.

He served five combat tours in Iraq, earning the reputation as the most lethal sniper in the U.S. military. After leaving the Navy, he wrote a bestselling autobiography, "American Sniper." The memorial edition was just released. Kyle also started a foundation to help vets struggling with PTSD. He had reached out to Ralph after learning about his troubles. Recently, Anderson spoke with Kyle's widow, Taya Kyle, and his brother, Jeff Kyle.

(BEGIN VIDEOTAPE)

ANDERSON COOPER, CNN HOST: Your husband left the Navy in 2009, was that a tough decision for him?

TAYA KYLE, WIDOW OF AMERICAN SNIPER CHRIS KYLE: Incredibly difficult. It was difficult for both of us, but it was incredibly difficult for him because he knew he was serving a purpose. He knew he was saving lives and he really truly felt no matter what he had done, he was letting his country down when he got out.

COOPER: Do you wear his dog tags?

TAYA KYLE: I do, all the time. I'm usually not very sentimental about things, but I put them on one day and it just does something for me.

COOPER: Jeff, what kind of a guy was Chris?

JEFF KYLE, BROTHER OF AMERICAN SNIPER CHRIS KYLE: He was a hell of a guy. He was mountain of a man, but his heart was even bigger than he was. He was a protector, always has been, from the time we were little. COOPER: You were in the Marine recon. Did he give you grief about that?

JEFF KYLE: Every day.

COOPER: And you served also in Iraq a number of times, but not at the same time as your brother?

JEFF KYLE: Correct.

COOPER: Was the fact you were both in the same operations although at different times, were you able at times to get together and talk about what you had seen and what you had been through?

JEFF KYLE: We tried to make it a point after ever deployment, to get together and talk. He was probably the only person I could talk to about certain things, and I would assume likewise, same thing with me.

COOPER: And he would take veterans out, just shooting, hunting, shooting at targets. And I think for people who don't maybe shoot in their lives, they may not understand it. But in a way, he found that guns could help heal people in the process of healing.

TAYA KYLE: I think he learned from people he talked to that were in the hospitals who didn't heal as quickly in that cold, sterile environment, even though it is great, they just didn't heal as quickly. You get them in the outdoors, fresh air, talking with other veterans, just as Jeff said it is nice to have somebody you can relate to.

COOPER: The incident in which he was killed, did you know this person he was going out with? Did he really know much about the person?

TAYA KYLE: He certainly did not have the information about this guy. He was given limited information. He should have been given more, in my opinion. But in his eyes, it is somebody from his community. He is not going to question it a whole lot.

COOPER: My understanding, there is a blame towards PTSD. Does it anger you?

TAYA KYLE: I wouldn't say it angers me as much --

JEFF KYLE: It did --

TAYA KYLE: I think it makes me feel very, very protective for people who genuinely have PTSD because we know a lot of them are wonderful people, serve in justice-related fields. They have huge hearts, so if something happens, it doesn't change their character, they carry guns. They love their families. They may be moody. But 100 percent it does not turn you into a cold-blooded killer.

COOPER: And it increases the stigma of somebody who has PTSD?

JEFF KYLE: You know, everybody who comes back either from Iraq or Afghanistan, any kind of combat situation is pretty much labelled with PTSD. If you have been in any kind of action or even heard of the guys going out there, getting some action, no, I have got PTSD now. And that is the problem that the government is getting into, is labelling everybody with PTSD and it has just become an excuse.

COOPER: Sometimes when somebody dies in a horrific and tragic way, it is hard to remember, to focus on how they lived their lives, you end up focusing on how their life ended. Jeff, do you find yourself thinking about how Chris' life ended?

JEFF KYLE: It definitely stays with me, but I don't dwell on it, you know, because I was fortunate enough to know him for 35 years. I can remember a lot more than just that one day.

COOPER: You, obviously, as well?

TAYA KYLE: There -- I don't think often about the way that he died. I actually think a whole lot about the way that he lived. I feel him with me. My kids feel him with us. I certainly miss him like crazy. And yet, there was such a magnetism and such a strength about his being, his love, his laughter, his humility, all of it wrapped up in this package, it doesn't leave you.

I don't think I'll ever live a day that I don't feel the strength of him and the foundation he left us with. I don't think you could live a more full life, a life full of gusto. I just don't think it is possible. I think he did an amazing job. He lives on in so many people. What a gift.

COOPER: Well, thank you so much for talking about Chris. I appreciate it.

(END VIDEOTAPE)

BLITZER: And you can learn more about Chris Kyle's legacy at the family's web site, chriskylefrog.com.

Up next, new information about the settlements for the victims of convicted sexual predator, Jerry Sandusky, it is tens of millions of dollars, but is it enough?

Also ahead, Chris Brown in court tonight facing new assault charges, what a judge decides about his fate. That is next.

(COMMERCIAL BREAK)

BLITZER: Let's get caught up on some other stories, Isha Sesay joining us once again with 360 Bulletin.

SESAY: Wolf, Penn State University will pay nearly $60 million to 26 sexual abuse victims of the former assistant football coach and serial rapist, Jerry Sandusky. The school announced a settlement today.

Singer, Chris Brown, was released from jail without bail off a fight outside his hotel got him charged with felony assault. A judge reduced that charge to a misdemeanor and ordered Brown to see his probation officer in California within 48 hours. He is also being ordered to stay 100 yards from the alleged victim.

And wolf, this would be the end of the story, unless a sneaky sea lion is lurking off camera. You see that? He or she stole the show, as well as the fish. The cameras were filming the cooking show "Chef On The Water." Very slick moves there.

BLITZER: Very slick, indeed. Isha, thank you. That does it for this edition of 360. Thanks for watching. We're back in one hour from now. "PIERS MORGAN LIVE" is next.