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LEGAL VIEW WITH ASHLEIGH BANFIELD

Pakistan Terror Attack Detailed; Dow Down Precipitously; Mayor of Flint, MI, Wants Accounatability. Aired 12:30-1p ET

Aired January 20, 2016 - 12:30   ET

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


[12:30:02] ASHLEIGH BANFIELD, CNN: So, walk me through why that's happening. And also the connection to that terrible school massacre from last year.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, it starts with your reference to the massacre in Peshawar while in December 2014. That was only 25 miles, really, down the road here.

Now, it's the same man who said he was behind that school massacre who said, he's behind the attempt of the university here today in -- sorry just not far away at all.

A man called Umar Mansoor, now he is one of the leaders of the Pakistani Taliban. Now, they're fractured, a lot has changed since the years passed where the Afghan war put a lot of focus and military pressure on the Pakistani Taliban to the fractures.

Their official wing today came out with the statement and said, no, this is not us. And quote, this attack is not according to Sharia Islamic Law, so kind of disapproving of the targeting of innocent civilians.

Umar Mansoor, in his lengthy statement he gave to the Germans working with us says, you know, this is me, it's vengeance for the military operation against when he referred to as friends.

And so now, 332, his friends had been hanged by the Pakistani Government, and also named four attackers as well.

Now, this is a sign, I think, of how fractured the militant group has become. They're under pressure in Pakistan like they haven't been before.

And in fact, many say the out take and violence next door in Afghanistan is because Pakistani Taliban has sought shelter there, and I'm taking the flight for the Afghan Government instead.

But today, it seems though they chose the early hours of the morning when they knew a ceremony was going to take place in the university campus, listing attendance numbers there used to cover a folk (ph) low visibility to move in.

This campus has riot exposed in the middle of some farmland. It does appear though, says security forces, some kind of tip-off was around in the days before security was boosted in the campus. But doesn't seemed mean that the violence was concentrated in two particular blocks on both the campus, the terrifying figure, of course, of 19 dead.

Well, it could've been a lot worse, given the thousands potentially could be on that campus at one time. Security forces able to kill those four attackers.

And they quite actually appear to have been using grenades to ease their ability to move around the campus there.

So a real toll against innocent civilians here, the second time the educational institutions are being targeted in just over a year. And the Pakistani Taliban distancing itself from this because it does nothing for their popularity (inaudible) Pakistani society is to support them, but one of the more radical leaders stepping forward saying, it was me. Ashleigh.

BANFIELD: Well, and 19, you said, but we're still watching to see if that number changes no matter what those pictures are just very disturbing. Nick Paton Walsh reporting live for us, thank you.

We are continuing to watch the Dow for you, those numbers, staggering actually, just staggering today. But right now, hovering at about minus 523, folks.

We'll continue to watch this and then update for you after the break.

(COMMERCIAL BREAK)

[12:37:02] BANFIELD: I want to continue to bring you this breaking news of what's happening to your 401(k) right now or to anything else you might be invested that is not good news.

The Dow is down 539, 541 points, it's just been fluctuating like mad, but it's been a bad day right from the get-go.

Alison Kosik started her day at the New York stock exchange. And it's been a flurry of activity, mostly all about oil prices.

But now, what about the attitude, because oil prices are one thing, and then there's that pack mentality that follows it, is that happening?

ALISON KOSIK, CNN CORRESPONDENT: Oh, yeah. I mean, a lot of this -- a lot of the time, you do see the selling accelerate because of the pack mentality that seemed. But a lot of this also really had to do with these technical levels that these indices are at.

And we really saw they're selling, pick up Ashleigh, when we saw the S&P 500, that's the broadest index in the stock market.

It includes 500 stocks that have 30 stocks that the Dow includes. So, investors on Wall Street like to watch the S&P 500 because it's a broader measure of how the market is essentially doing. So, that index happened to hit a certain level. And a lot of these computers systems use algorithms, they computerize trading, they kick in, and then they just start to sell them.

That's why we saw that accelerated selling happen. We're seeing it selling hold steady. Although, not easy to look at. Seeing the Dow down 539 points, seriously, is eye-popping.

As is the price of oil, continuing to move lower as stocks move lower. Oil, down over 7 percent -- 7.3 percent right now, sitting below $27 a barrel.

These are the levels, especially when you look at the oil. The level we haven't seen in more than a decade. Certainly, is eye-popping. Ashleigh.

And it certainly affects sentiment. When you see levels like this, it's like going back in time. I mean, unless - even to mention the S&P 500, it's at a level we haven't seen since October of 2014. It's like we're going back in time.

BANFIELD: And you were saying, you know, fascinatingly for people who live here, super sophisticated in investing those algorithms, all that computer investing out there, that magic happens without people even knowing it.

Those levels are hit, and the algorithms just starts sell like mad, and then it's just as crazy downward spiral. But what about the protection that usually can kick in, those triggers, where are those levels, when do those magical triggers kick in to stop the insanity?

KOSIK: So, we're away the way from those triggers. We're not anywhere near those triggers, those triggers hit around 7 percent. So right now, we are at about 3.5 percent. So we would have ways to go. And there are certain limitations on those triggers as well.

One thing to keep in mind, you know, you think of the computerized trading, those are the big boy's trading. And then you think of the amateur traders. If you're an amateur trader, sit this one out. You know, the advice is of course, you know, it sounds cliche but don't panic, you know, selling out of fear is almost always a mistake.

[12:40:01] And then the other cliche, when do you get back into the ring, just diversify. It's not as simple as not putting all your eggs in one basket though. And then you'll want to think about maybe rebalancing, make your sure you have a mix of stocks and bonds or other safer investments. But that's for another time. If you're in this market, and you're getting scared, the best thing to do is just back up, take your hands off, and just sort of watch the process and wait for it to hit bottom.

BANFIELD: And Alison, I will say one man's trash is another man's treasure because there are a lot of people who look at those numbers and says, "Thank you Jesus, I just got to stay along on Wall Street.

KOSIK: Right, you just have the stomach for it. BANFIELD: Do you ever start doing the abs crunches now. Alison, thank you. Join us again if things change, yet again.

Coming up next, I think you have heard this that there is something so rotten in the waters in Flint, Michigan that they are sending protesters into the streets, lawyers into the courtroom, and the mayor over to the White House asking for help. All the while is the governor tells it's the citizens there, your government failed you. This problem is far from being fixed. But who is going to get relief and when?

(BEGIN VIDEO CLIP)

CHRIS CUOMO, CNN ANCHOR: My son helped make me change.

UNIDENTIFIED MALE: These people changed lives.

UNIDENTIFIED FEMALE: Can you believe we're back here?

UNIDENTIFIED MALE: Join the familiar faces of CNN as they share their special someone with you.

MICHAELA PEREIRA, CNN HOST: The voyage that your suggestions sent me on.

WOLF BLITZER, CNN HOST: But I learned this from you. You have to ask important questions on the most important issues of the day.

BANFIELD: Without my mom, I am certain I would not be where I am.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: If you were to ask them how important is a mentor, and if they told you, yeah not that important, it probably means they never had a great mentor.

UNIDENTIFIED FEMALE: Is that the letter?

UNIDENTIFIED FEMALE: This is the letter.

UNIDENTIFIED FEMALE: You found it?

UNIDENTIFIED FEMALE: From this little bag.

DON LEMON, CNN HOST: Very few people will tell you the truth. And you do that.

UNIDENTIFIED MALE: Anderson Cooper and Michaela Pereira host "THE PERSON WHO CHANGED MY LIFE", Sunday at 8:00 on CNN.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[12:46:31] Dr. SANJAY GUPTA: When Mario Bosco was pulled from the audience in "Jimmy Kimmel Live", he seemed like a typical kid from Brooklyn

(BEGIN VIDEO CLIP)

MARIO BOSCO: Oh he had, a cigar. He was sit back to this chair and I would come by.

UNIDENTIFIED MALE: You sure it was me?

GUPTA: But looks can be deceiving

JIMMY KIMMEL: How old are you?

BOSCO: Thirty-six.

GUPTA: Mario has this rare condition known as panhypopituitarism. His pituitary gland was damaged when in-utero. And it means his gland doesn't make enough essential growth hormones. He spent much of his childhood in and out of hospitals.

BOSCO: When being in the hospitals, I had to watch my sitcoms. I crawl up into the bed and I would watch Barney Miller, Maude, Gimme a Break and why because I wanted to be an actor.

GUPTA: Mario got bit parts in movies and on TV including NYPD Blue, in spite of and because of his size.

UNIDENTIFIED MALE: How old are you?

BOSCO: How old do you want me to be?

GUPTA: When doctors suggested the actor take testosterone to force puberty, he said no.

BOSCO: My life was OK. My career was moving forward. You know, they say don't break some things that doesn't need to be fixed.

GUPTA: And now 43, Mario has added author to his list of accomplishments hoping to inspire others.

BOSCO: I am happy being Mario Bosco, this height, this size, this weight.

(END VIDEO CLIP)

GUPTA: All 4 foot 10", 90 pounds of him. Dr. Sanjay Gupta, CNN reporting.

BANFIELD: I want to return you to our breaking news CNN's watching the market radar. The lowest points today and it is a bad one for 561 now down. The Dow, NSP and the NASDAQ also down severely today. This is all on the bad oil prices. Look, it's great if you're a driver but it's really lousy if you're in the energy sector that oil has now fallen below $27 a barrel. All at the same time as Iran is about to really provide a big glut on the oil market.

It's driving down those prices. It's causing bankruptcies not only within the sector but also a lot of bankruptcies out there and how they market all of those oil-rich producing places in the United States. You know, are a lot of forced failed signs and foreclosure signs going up. So, that's causing a lot of problems.

We also got that whole global market problem too. China has been struggling. Though not so bad yesterday but this today is really a sign of what's going on with the energy sector and oil prices.

So, we're keeping an eye on that. Good opportunity for people who want to buy but only if you know what you're doing. I want to continue on the president is visiting Michigan today. His focus is the resurgence in the auto industry there. But a lot of people want to know something else. They want to know how he's going to address Flint, Michigan's Lead water crisis.

This after the governor of the state, Governor Rick Snyder made this stunning admission last night, "The government failed you." During his state of the state speech, he said he's asking for $28 million in emergency funding but the mayor of Flint, Michigan, Karen Weaver says the hack is a drop in the bucket.

The cost to undo the damage that has been wrought in that community could between $1 and $1.5 billion and she met with President Obama at the White House yesterday to talk about this.

Look at the pictures on your screen, that's just regular old Flint water, yeah, drinking water. Today in Washington at the U.S conference of mayors, the mayor of that city demanded accountability and the people of Flint want it too

[12:50:04] They're not asking the president, they are asking a judge. Attorney Michael Pitt is representing residents who are suing the Michigan officials over this matter. He joins me live now from Madison Heights Michigan. Mr. Pitt thanks so much for being with me.

First and foremost, a lot of people who are watching, saw those pictures of the water, they hear about the unbearable lead levels in the water, and everybody thinks immediately, well, bring your wheelbarrow to collect your money for your class action suit, but it is not going to be that easy. What obstacles are you going to face for your client?

MICHAEL PITT, ATTORNEY: Well, thank you for having me. We are going to be faced with many obstacles. I spoke with the attorney general's representative this morning. They are preparing a motion to dismiss the federal case that we filed on November 13. So they are going to aggressively defend the case and the lawyers working (inaudible).

BANFIELD: Mr. Pitt, I apologize I think we've got some pretty severe weather that's moving across your area right now and our lines are taking hits right now. I have lost our connection with Michael Pitt. We're going to try to get that back in a moment.

But Joey Jackson and Paul Callan are standing by as well. With a really good analysis of where this comes down it is not as simple as I just laid out to Michael Pitt it sounds easy, bad drinking water, people with lesions and hair losses, sickness and children with lead levels sometimes three times the level they were a year ago, but there's something more when you want to sue that government. JOEY JACKSON, CNN LEGAL ANALYST: There is a lot more, Ashleigh, and you know, first of all, when you think about how a $100 decontaminant that would have been placed in the water during the shift could have solved this whole issue, it really is stunning given the magnitude of the problem, and really the long-term health consequences. So even that, there is no question that there was some type of negligence here. There is none or whatsoever.

You and I was speaking about the 2011 study where the government was put on notice, saying look, Flint, it's polluted, it's contaminated don't do it. In the face of that, they do it, why? Because they are looking at preserving and saving money, that was the only issue.

Then the community comes forward, letters, e-mails, everything, something is wrong. They were in denial that is the state and they said it's fine, you know, they picked up the drinking water, drink it with me, and that in the face of really scientific proof, the government still ignores and denies. That's problematic but the governmental immunity I think will play big into the argument as to why the government is not following.

BANFIELD: So Paul, I'm going to get you the way in one second, but I've just been able to re-establish our link with Michael Pitt. Mr. Pitt I'm sorry we sort of lost you as you were about to go into the hurdles that you're facing, and I want to ask you specifically about the biggest hurdle at least from my small perspective and that is causation. You might have clients out there with lead in their system, you might have clients who had hair loss, you might have clients with something far worst or not as bad, but ultimately, isn't it really difficult to prove perfectly that it was the lead in the water or that it was water at all that led to all of the people in the class action suits problems?

PITT: Well, we have a unique situation here. We have blood level test -- blood lead level test that were taken at the same time of the exposure to the toxic water, and we have children who had zero blood lead levels before the exposure, we have children with five, six times elevation at the time of the exposure. It is a perfect match. It is perfect match for those children who fit into that category this is not going to be a difficult task, for others, yes, but for the large group of children, we have a very strong case already developed.

BANFIELD: OK. And I want to bring my colleague into that conversation as well, because Paul, there was a study in 2011that show what Joey said, just small price a kind of chemical that would have stopped the corrosion from creating this problem in the water, and there are other allegations that there has been manipulation of the data. Do you even need the causation if the government manipulated anything, and I'm not saying they did, that's the allegation?

PAUL CALLAN, CNN LEGAL ANALYST: You know, I think in the end, it's going to be difficult clash action suit.

BANFIELD: You do?

CALLAN: Well, I only said that, because all class action suits are tough. And here, they are saying there is going -- federal constitutional violation that the 14th amendment which guarantees you life, liberty and property, and you can't be deprived of it without due process, they got to kind of fit water contamination into that and it's a tough thing.

[12:55:06] I think in the end for the people of Flint, the government should be allocating money directly. Michigan should be doing it. The federal government should be doing -- I mean this is like hurricane Sandy hitting the east coast. We fixed the beaches.

These are people who have been harmed severely rather than putting them through and I'm sure they got a fine lawyer Mr. Pitt, and may be in three or four years he'll win the cases, but they need a remedy now and that's government not from the private (inaudible)

BANFIELD: And by the way they need that remedy on the pipes alone, I mean we got to get the water going again and safe again before you even begin to address the damages that have been caused to the community.

Paul thank you Paul Callan, Joey Jackson and my thanks to Michael Pitt. All my apologies for our technical difficulties, but well have you back again Mr. Pitt. Thank you.

And thank you everyone for watching, it's so nice to have you along my colleague Wolf Blitzer starts right after this quick break.

(COMMERCIAL BREAK)

[1:00:16] WOLF BLITZER: Hello, I'm Wolf Blitzer it's noon in Tulsa Oklahoma 1 p.m. here in Washington. 11 p.m. in Islamabad Pakistan. Where ever you're watching --