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CNN NEWSROOM

NSA Leaker Revealed, May Be on the Run; Americans' Privacy Versus National Security; Mandela in "Serious But Stable" Condition; Missing Teacher's Body Possibly Found; Crews Rescue Family Stranded in River; George Zimmerman Trial Begins; Stocks Lose Jobs Momentum

Aired June 10, 2013 - 10:00   ET

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


CAROL COSTELLO, CNN ANCHOR: Happening now in the NEWSROOM. Nothing to hide, Edward Snowden, the NSA leaker says, he did it for you.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Even if you are not doing anything wrong you are being watched and recorded.

(END VIDEO CLIP)

COSTELLO: Hiding in a Hongkong hotel room, he says he does not expect to ever expect to come home.

Also, it begins, George Zimmerman in court in a case that divided the nation on race and gun control. We are live in Sanford, Florida.

Plus, whose life is worth more and who should decide? Tough questions in the fight to save a 10-year-old girl.

And Apple, can it still invent cool products you don't know you need or want? We find out today. You are live in the CNN NEWSROOM.

Good morning. Thank you so much for being with me. I'm Carol Costello. We begin this morning in Hongkong because somewhere in this city, Edward Snowden the man that leaked sensitive intelligence from America's spy agency may be on the run after introducing himself on camera to a nation with a lot of questions.

(BEGIN VIDEO CLIP)

EDWARD SNOWDEN, NSA LEAKER: I'm willing to go on the record to defend the authenticity of them and say I didn't change these. I didn't modify the story. This is the truth. This is what's happening. You should decide whether we need to be doing this.

(END VIDEO CLIP)

COSTELLO: A man with Snowden's name reportedly checked out of this luxury hotel, The Mira. Two journalists with "The Guardian" say Snowden left this hotel only a few times since arriving in Hongkong just three weeks ago. Now he has given up his anonymity and likely any chance to return to the United States and live here freely by admitting he is the source of an intelligence leak that has the Obama administration on the defense.

And Americans nationwide are questioning just how much the government knows about everything from their phone calls to their Facebook updates? Here in his own words Edward Snowden.

(BEGIN VIDEOTAPE)

SNOWDEN: You see things that may be disturbing, but over the course of a normal person's career, you'd only see one or two of these instances. When you see everything, you see them on a more frequent basis and you recognize that some of these things are actually abuses and when you talk to people about them, in a place like this, where -- this is the normal state of business, people tend not to take them very seriously.

And, you know, move on from them, but over time, that awareness of wrongdoing sort of builds up and you feel compelled to talk about it. The more you talk about it, the more you ignore, the more you are told it is not a problem until eventually you realize that these things need to be determined by the public. Not by somebody who was simply hired by the government.

NSA, the intelligence community in general, is focused on getting intelligence wherever it can by any means possible. It believes on the grounds of sort of a self-certification that they serve the national interest. Originally we saw that focused very narrowly tailored as foreign intelligence gathered overseas. Now increasingly, we see that it is happening domestically.

To do that, they -- the NSA specifically targets the communications of everyone and it ingests by default and collects them in its system and filters them and analyzes them and measures them and stores them for periods of time. Simply because that's the easiest, most efficient and most valuable way to achieve these ends.

So while they may be intending to target someone associated with a foreign government or someone that they suspect terrorism, they are collecting your communications to do so. Any analyst at any time can target anyone. Not all analysts have the ability to target everything.

But I sitting at my desk certainly have the authority to wiretap anyone from you or your accountant to a federal judge and to even a president if I had a personal e-mail. I think the public is owed an explanation of the motivations behind the people who make these disclosures that are outside of the democratic model.

When you are subverting the power of government, that is a fundamentally dangerous thing to democracy, and if you do that in secret consistently, you know, as the government does, when it wants to benefit from a secret action that it took, it will give its official as mandate go, you know, tell the press about this thing and that thing. So the public is on our side.

But they rarely, if ever, do that when an abuse occurs. That falls to individual citizens, but they are typically maligned and it backs thing of these people are against the country, they are against the government, but I'm not. I'm no different from anybody else. I don't have special skills.

I'm just another guy who sits there day to day in the office and watches what's happening and goes -- this is something that is not our place to decide. The public needs to decide whether these programs of policies are right or wrong. I'm willing to go on the record to defend the authenticity of them and say I didn't change these.

I didn't modify the story. This is the truth. This is what's happening. You should decide whether we immediate to be doing this.

(END VIDEOTAPE)

COSTELLO: That was just a partial excerpt from "The Guardian" interview. We are going to play the rest for you, all 9 minutes, at the bottom of the hour. Snowden says you and every other American deserves to know the government is monitoring you, but Congress and Peter King says the issue has become much bigger than a debate over privacy.

(BEGIN VIDEO CLIP)

REPRESENTATIVE PETER KING (R), NEW YORK (via telephone): It does not show -- there's so much he said that it is untrue, again, this person is dangerous to the country. He had -- real question as to why he left the CIA. The fact that he is in China right now or in Hongkong, which is a sub-state of China, and he knows where the intelligence assets are, who are intelligence agents are around the world, and the fact he allowed our enemy to know when our sources and methods are. It is extremely dangerous. I believe he should be prosecuted to the fullest extent of the law. I consider him right now to be a defector.

(END VIDEO CLIP)

COSTELLO: Joining me now, CNN chief political analyst Gloria Borger, CNN chief national correspondent John King, CNN's Wolf Blitzer and CNN legal analyst Jeffrey Toobin, he will be with us shortly. He is monitoring the U.S. Supreme Court right now. But John, I want to start with you. How do Snowden's revelations damage national security? Am I now in danger because of him?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: It is an interesting question, Carol. It is a fascinating debate we are going to have now because of these leaks. The president does want this debate in public. Many members of Congress don't want it, but some members do. Now the public gets it whether it wants it or not.

Are you in danger? Mr. Snowden says yes. Mr. Snowden says you are in danger because the government is monitoring your information. What the intelligence folks will tell you and what the White House will tell you is that you are in danger now because he has put this out here in the public domain so the bad guys know part of what the United States government is doing to track them.

We are a dozen years almost and just a couple of months removed from 9/11. This is a debate the country has had only periodically and now we are going to have it very publicly because of the actions of Mr. Snowden and the United States would like to bring him back and bring him to justice. That would be an interesting thing to watch in the coming days.

But it will be interesting to watch. These are the president's friends, if you will, on the left are the ones who were saying he's overstepped here and Mr. Snowden has put into the public domain the evidence they will now use to have a debate about civil liberties and debate about whether the United States government is going too far.

COSTELLO: I was going to say don't the bad guys already know that the U.S. government is monitoring their e-mails and phone calls?

KING: Of course, they know. The question is how, from what ways, how do they analyze it, and how deep is the context? One would assume they would have to be idiots not to know the United States government is doing everything it can to track them. The question now becomes do the American people revolt, protest against this? Do they think the government has gone too far, big brother on steroids, if you will.

That's an interesting thing because most Americans especially in the days right after 9/11, if you remember, most Americans thought, OK, that attack was horrendous and government should do what it takes. The question is a dozen years later do the American people want to hit the reset button?

And say let's step back and think about this again, have we gone too far? Is the need as urgent as it was then? That's a conversation the country probably should have anyway and now it has a lot more details about just what the government is doing as we have it.

COSTELLO: OK, so along those lines, Wolf, Snowden claims that he had your personal e-mail. He could wiretap you or anyone, even President Obama. President Obama says that the government is not listening to your phone calls. That's silly. No worries. So the question is who will the public believe?

WOLF BLITZER, HOST, CNN'S "THE SITUATION ROOM": The president is very clear on this, National Security Agency officials, other members of the U.S. intelligence community, and leading members of Congress from the intelligence committees in the House and the Senate, they say that it is -- the rules are very, very clear. They monitor -- they monitor the records of all of these phone calls.

If there is a foreigner who they suspect is involved in terrorism, and they want to follow up on that, they can wiretap and can listen in to the foreigners' conversation was people in the United States. If there is an American who is talking to somebody overseas, that they suspect could be involved in terrorism, they could monitor that. But if it is an American they have to go back to court and to get a special warrant to go ahead and monitor and listen to that actual conversation.

COSTELLO: Most Americans would say that's sounds reasonable, but right now not many people have trust in government, do they? BLITZER: A lot of people don't trust the government. A lot of people don't trust the big federal government and that's going to cause a lot of heartburn for a lot of these officials who are deeply involved in this. If you speak to national security types and members of the intelligence committees and others, they say that these programs have been very successful in avoiding and averting terrorist attacks against the United States. If you speak to the other side they say they haven't been all that successful. It is just a waste of time and a waste of money and an invasion of individuals' privacy.

COSTELLO: Gloria, since Snowden escaped to Hongkong and this is really the most fascinating part. So he escapes to Hongkong and he sucked China into the mix. So how will this affect how the Obama administration deals with him?

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: I guess the question is whether, in fact, Snowden then becomes a pawn between the United States and China? Look, I think what's going to occur, Carol, a first is the question of whether the U.S. is going to seek extradition. They are going to want to arrest him. They are going to want to get him back into this country. Usually that would occur pretty quickly.

He could claim that he's going to face cruel and degrading treatment in this country. That if he does say that, then that will be a question that would have to be addressed. The question then, of course, is whether China at some point intervenes. But I think that -- given what occurred from Congress, you heard Congressman Peter King earlier, for example, say he needs to be righted as a defector then we are going to want to get him back in this country as quickly as we can.

COSTELLO: So could he charged with -- I would ask Jeffrey Toobin this, but of course, he is all tied up with the U.S. Supreme Court. So I'll ask you, Gloria, so what could he be charged with, espionage? That's the only charge I have heard thrown around.

BORGER: Yes. He could be charged with espionage and I'm not legal eagle here, but I would think that would be the most likely thing for him to be charged with. You know, the question is in this kind of a trial, what do you want public and what do you not want public? As you were pointing out before, most of the American public actually believes that we immediate to be protected here.

What they are worried about -- again, this splits sort of down the middle although older people are more worried about it than younger people sometimes. That, you know, they are worried -- they are worried about protecting privacy and they are worried about terrorism. So this is going to be kind of a very, very tricky thing and don't expect, carol, for example, a trial would occur within a short period of time. I think that's going to take an awfully long time to unravel.

COSTELLO: All right, Gloria Borger, John King and Wolf Blitzer, thanks so much. I mentioned Jeffrey Toobin was busy with the Supreme Court. Well, he just told us that the U.S. Supreme Court will issue no major rulings today. They are going to leave that for another day. In other news this morning, for 15 months George Zimmerman has proclaimed his innocence. Now the man who admits killing Trayvon Martin gets his day in court.

(COMMERCIAL BREAK)

COSTELLO: It's 15 minutes past the hour. It's time to check our top stories. Former South African President Nelson Mandela is in serious but stable condition for a recurring lung infection. That's according to South African's president who was called on the country to pray for Mandela. Mandela was rushed to a hospital Saturday. He is still in intensive care.

Officials in New Orleans think they found the body of that missing school teacher, Tarilyn Monet. Her car was pulled from Jefferson Parish Bayou this weekend with a decomposed body inside. An autopsy is expected to take place this morning. She was last seen March 2nd leaving a bar after a night out with friends. So far police are not ruling out the possibility of foul play.

Rescue crews in Northern California battled extreme heat and dangerous rapids to save a family stranded in a river. A mother who turned her two daughters and nephew got stuck on a rock for more than four hours after water levels suddenly rose several feet. Two bystanders that tried to help also got stuck. They were rescued, too.

Six jurors, four alternates, hundreds of people will now be screened as potential jurors in the George Zimmerman murder trial. He is charged with second-degree murder in the death of Trayvon Martin.

Just a short time ago, Martin's parents released a statement saying, quote, "We are seeking justice for our son and a fair trial. Trayvon's life was taken unnecessarily and tragically, but we call upon the community to be peaceful. We have placed our faith in the justice system and ask that the community do the same."

CNN's Ashleigh Banfield joins us live now. Good morning, Ashleigh.

ASHLEIGH BANFIELD, CNN CORRESPONDENT: Good morning, Carol.

COSTELLO: So I'm thinking this will be a long process to choose a jury.

BANFIELD: You know what? It could be. It also could end up in a very unique situation that's happened in Florida before whereby they could not find a jury in one county. I remember in the John Avender Cuibb trial that had to be moved because they just could not find an impartial panel.

So it is not as though it has not happened before. But ultimately, Carol, have heart and have faith because I always say this, if can you pick a jury for O.J. Simpson, you can pick a jury for George Zimmerman as well. It might take some time, but you can do it.

COSTELLO: Well, it struck me the Martin's family statement was just released a short time ago. It struck me that they asked for peace, for things to be peaceful. I mean, do you notice anything not so peaceful down there in Florida?

BANFIELD: Well, I tell you what, this helicopter is buzzing over top of the courthouse. So that starts off with the circus-like atmosphere, but you know, I think things have changed over the course of the year. Certainly the narrative in this story began with such a frenetic, you know, you know -- I don't even know what to call it.

But it just seemed as though there was so much that wasn't being said properly. There were pieces of information coming out without context. A lot of people jump order the story and took it their way. And I think that has settled since there has been a lot of discovery. People have started to figure out more of the narrative.

It does not mean that there are not incredible gross divisions in this story. But I do think that more people want to hear what they have to say in court before, you know, marching in whatever rally they choose. That said, it is Florida and this is the place that where Casey Anthony was heard, et cetera.

So hopefully this will be the kind of story where we can actually focus on the evidence in court and let the procedure, criminal procedure, actually run its course because that's the only thing that's going to determine whether that man is guilty or not guilty of second-degree murder.

COSTELLO: OK, so speaking of evidence, George Zimmerman's attorney wanted to get a lot of the evidence thrown out before the trial started because he wanted so much information kept out, what does that tell you about his case?

BANFIELD: Well, you know, interestingly, the prosecutors also wanted things suppressed and wanted things mitigated. They are both fighting hard. I mean, this is a political case so the prosecutors do not want to mess up on this. They also don't want to have appearances they haven't worked their utmost on this case. They don't want something to come back at them on appeal if they don't set the record.

You can't appeal anything unless you bring it up and put it on the record to start with. There is a lot of cautious maneuvering in the courtroom in pre-trial and likely during trial as well. Expect a whole bunch of objections. But I think that, you know, look, the defense attorneys had a rough go in pre-trial motions. They lost a lot of them.

But I have seen many cases turn afterwards. I have also seen many a case go exactly the way pre-trials went and -- when it bodes badly from the bench for one side, it ends up that way, too because sometimes juries look at what that ultimate jurist is saying, the judge in the case. When the judge is hard on someone the jury tends to think there must be a good reason for that. Again, evidence is evidence.

COSTELLO: I was going to ask you on scale of one to ten, how likely sit that George Zimmerman will take the stand in his own defense?

BANFIELD: Are you seriously going to ask. Carol Costello, you should know better than that? Here is the deal. No matter what George Zimmerman wants to do, because there are plenty of clients that desperately want on have their say. They feel so wronged or feel like they deserve to say something the lawyers didn't say. Strategically that's not always a good idea.

There are a million factors that come into it, your personality, how you come across even if you are as innocent as the light of day. I don't know. I mean, honestly, that's usually a decision that's made towards the very end once you see how the prosecution's case is, the prosecution doesn't meet its burden, don't put your butt up on the stand because you can undo what doesn't need to be undone.

COSTELLO: But if the defense is losing badly it may be your only chance.

BANFIELD: Could be. Look, I -- you know, I have heard his voice on the stand before. It wasn't what I expected to hear and it may bode well for him but, again, it is a political case. It is not going to be all based on just the facts sadly, which every court case should but it has been out there in the press. People have screamed and yelled and marched on the streets on both sides of the case. He may be his only saving grace or his own worst enemy. I couldn't tell you until I saw him.

COSTELLO: All right, Ashleigh Banfield, thanks as always.

It has been nine months since Apple's last product launch, but that could all change today. The next big thing could be right around the corner.

(COMMERCIAL BREAK)

COSTELLO: The Dow is off to a slow start for the week giving back some of Friday's big gains sparked by the latest jobs report. Alison Kosik is at the New York Stock Exchange. Tell us why. Good morning.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Carol, no surprise to see stocks losing momentum after the huge rally on Friday where we saw the Dow jump 207 points on that jobs report. You know, investors in a funny way are calling the jobs report a Goldilocks jobs report. It was not too hot, not too cold, strong enough to keep the economy shuffling along and weak enough for the fed to have to continue pumping stimulus money into the economy.

We are watching shares of McDonalds this morning. Shares right now are gaining 1.75 percent. Mc'D has posted a big turnaround in sales for May -- Carol

COSTELLO: I just want to talk about Apple before I let you go because it is having this big conference and everybody is hoping for the next big thing so that Apple stocks will recover, and that the lustre will return to the company.

KOSIK: Well, that is what everybody is hoping for, but you know what's inning. This developer's conference, it may be more about what we don't expect to see. You know, no iWatch, no Apple TV set, not even a new iPhone to duke it out with the new Samsung Galaxy S4, which came out in the springtime. That's what some investors are worried about, what will not come out.

There is one potential game changer in this. Apple could announce a new streaming digital radio service that is making Pandora and Spotify very nervous. It could be called I-radio and rumor is it would be free to users because it would be supported by ads. It would use what Apple calls its genius program to choose songs based on what is already in your iTunes library, which means it will require less user input and to set up custom stations. Let the speculation begin, the Developers Conference begins in a couple of hours -- Carol.

COSTELLO: OK, I know you will keep us posted. Alison Kosik, thanks so much.

Quick look at the weather this morning, if you are along the east coast expect lots and lots of rain with a chance of flooding in some areas. And out west, it is going to be hot and I mean really hot.

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