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BP's Tony Hayward Leaving; Protesters Targets BP Stations; Tracing Leaked War Documents; Bell California Residents Outraged Over City Officials' High Salaries; Blagojevich's Attorney Risks Contempt of Court Over Closing Arguments; Tornadoes in the Bronx and Montana, Storms and Heat in the South; Nissan Recalls Cube Hatchbacks; Inside the Immigration Fight

Aired July 27, 2010 - 09:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Good morning, guys. Good morning, everybody. BP chief Tony Hayward is out. And he's leaving with a pension plan that gives him $1 million a year.

Living in fear in Utah. A list that could separate a man from his daughter. He's in this country illegally and immigration agents know it. He tells us his story.

Going to the game? Eat at your own risk. A stadium hot dog with a side of salmonella and icy cold soda with a splash of mold. Oh, yes. We are listing the worst offenders.

I'm Kyra Phillips. It's 9:00 a.m. on the East, 6:00 a.m. out West. You're live in the CNN NEWSROOM.

Well, it's day 99 of the Gulf oil crisis. And BP's chief executive Tony Hayward is on his way out. Taking the lead of the oil giant now, American Bob Dudley. A Gulf Coast native who's reassuring residents that his commitment is personal.

It's probably fair to say he's one of the most hated men in America right now. So for millions of folks living along the Gulf Coast, the ouster of Hayward couldn't come fast enough.

So do they have more confidence in one of their own taking the reins?

CNN's David Mattingly joining us now from New Orleans.

So, David, how do Gulf residents actually feel about having one of their own in charge now?

DAVID MATTINGLY, CNN CORRESPONDENT: Well, they are looking at this as an opportunity for BP to essentially change its image, to improve its standing in the world community. As far as the standing here, they say actions are going to speak -- speak much louder than words.

They want to make sure that the compensation is done to their liking. They want to make sure that the cleanup is done to their liking. And those actions are going to speak louder than any change at the top of this company.

PHILLIPS: A backup plan for such a huge drilling operation. If something were to go wrong, did Hayward have a plan in place?

MATTINGLY: Well, that -- I had a conversation with him back in early May. And part of that conversation was about responsibility, and Tony Hayward at the time was very clear in trying to lay out where he thought BP's responsibility began and ended with this disaster.

And he felt that that was involving the capping of the well, the cleaning up of the oil, and the compensation of the victims. But at that point -- and that was a message that stayed consistent throughout his tenure with BP -- was that they were not prepared for a disaster that shouldn't have happened in the first place.

(BEGIN VIDEO CLIP)

TONY HAYWARD, BP CEO: This, as I said, has never happened in the industry before. It is as if a 747 has fallen out of the sky across the Atlantic. We need to understand through the investigation why -- why that has occurred. And then the industry will undoubtedly make interventions and take steps to change it.

MATTINGLY: But there are all sorts of safety features involved in air travel. Were there enough safety features involved in drilling for oil?

HAYWARD: There absolutely -- yes, I mean, on this blowout --

(CROSSTALK)

HAYWARD: Well, no. And sometimes the aircraft fall out of the sky, right?

(END OF VIDEO CLIP)

MATTINGLY: That was a very telling moment in that conversation about responsibility. I also talked to him about BP's responsibility for that rig. He said that their role at the time was just as an architect creating the plans and not actually carrying them out.

He also talked about the dispersants. We had a long conversation with that. He said the responsibility for that was with U.S. regulators.

So, again, Tony Hayward from the very begin trying to set the tone with the discussion about responsibility with this disaster. He was saying that BP's responsibility began and ended with that oil and with the compensation of the victims -- Kyra.

PHILLIPS: David Mattingly, live in New Orleans. David, thanks.

Let's take a close look now at Bob Dudley. He's a chemical engineer with more than 30 years of experience in the oil industry. He's been in charge of the day-to-day operations in the Gulf Coast since June.

Almost as important he's a native of the region. He grew up in Mississippi and has often spoken of swimming and fishing along the coast. He says the cleanup effort is a personal mission. And here's some other developments. Earlier this morning, BP announced a new tally on the cost of the spill. It lost more than $17 billion just in April, May and June. Compare that to the same time last year when it pocketed a profit of $4.4 billion.

Here's the latest time frame for shutting down the ruptured well. The first step of the so-called static kill maneuver could begin as soon as early next week. That would be followed by a second effort to plus the well, sealing it permanently from the bottom through a relief well. That could begin by August 9th.

BP has faced blistering criticism for months along the Gulf Coast. But today environmental activists launched a new campaign on its home turf.

CNN's Zain Verjee has the details now from London.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN ANCHOR/CORRESPONDENT: This morning, Greenpeace activists launched a covert operation. Small teams found around central London and they hit almost 50 BP petrol stations. Just like this one here.

Look what they did. They put their banner over BP's logo and then they put ones like this one up saying, close, moving beyond petroleum.

I spoke to Greenpeace. And I asked why are they doing this?

JOHN SAUVEN, EXECUTIVE DIRECTOR, GREENPEACE UK: Today BP have announced that they are changing the boss. And I think that what we want to do is make them not just rearrange the deck chairs but actually look at the whole future direction of the company.

VERJEE: Greenpeace says that when they got here everything was calm. They spoke to the station managers. The station managers were given a letter explaining why they were doing this. The police were called. And that there was no trouble.

Greenpeace also brought fences like this one and bolted them down so nobody can enter the BP petrol stations. They also removed the most crucial part.

It's amazing to think that this little switch has totally shut down many BP stations across central London. I managed to get my hands on one of these. This is called the fireman's switch. It's on every single box at a petrol station.

And by removing this little item, the power supply to the petrol pumps has just been shut down.

(END OF VIDEO CLIP)

PHILLIPS: Coalition forces in Afghanistan say that they've recovered the body of one of the two American sailors who disappeared last Friday. Posters offering a $20,000 reward for the safe return of the second servicemen are being distributed in that region.

The Taliban says that the second sailor is alive. He is being held while the group figures out its demands.

And Joint Chiefs chairman, Admiral Mike Mullen, arrived today in Baghdad from Afghanistan. He's reviewing plans for the pullout from Iraq. The deadline for the U.S. combat mission to end in Iraq is just five weeks away. U.S. troops scheduled to be out by the end of 2011.

Suspicion is mounting that an Army intelligence analyst is behind the leak of over 90,000 secret Afghanistan war documents. The "Wall Street Journal" now reporting that Private Bradley Manning is a person interest in that probe and the 22-year-old is already charged with leaking classified position.

Barbara Starr live at the Pentagon. So Barbara, what do we know about this guy?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, this is Private 1st Class Bradley Manning, 22-year-old, junior Army intelligence analyst, as you say, already detained.

Under arrest by the Army for allegations he leaked a video to WikiLeaks back several months ago. A video of a classified 2007 helicopter raid over Baghdad. At that time a lot of consternation. And when the charges finally became public about Manning, those charges included allegations that he had tens of thousands of additional documents.

So that is why he certainly is suspect number one at this point. The Pentagon says they are investigating all of this. They are looking at the documents to try and see if they pose a specific risk to troops in the field, military operations but also looking at Bradley Manning and trying to figure out, did he act alone or did he have help and how on earth he got his hands on so much classified material -- Kyra.

PHILLIPS: And as you mentioned, you know, he's already been charged with leaking information in the past. Talk a little bit more about that. And is there a feeling or -- or are there any ideas as to why he would do this? Is he anti-war? Does he have another purpose here behind these allegations?

STARR: Well, you know, investigators I'm quite certain have talked to him and asked him those questions. We don't know the answers. His activities somewhat came to light through cyberspace.

In fact, it is said that he contacted a hacker and made some of his activities known. That hacker became very concerned and contacted federal authorities about what was going on.

Think of this as a cyber attack. You know, we talked so much about cyber attacks, cyber warfare this time for the U.S. military. It really came from within.

Will there be changes in how classified material is handled on -- who has access to it, and that sort of thing, right now Secretary of Defense Robert Gates is saying no. He wants to have trust in the people who have security clearances, who are supposed to be looking at this material.

People can violate the law if they want to. They can find ways to get around it. So all of this still really under review. The Pentagon trying to determine what its next steps will be -- Kyra.

PHILLIPS: Yes, we're going to follow it, too, right there with you. Barbara Starr, thanks.

Well, we knew it would be a hell of a night in Bell, California. Outrage there coming to a boil.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Shame on you. Shame on you. All of you.

(END OF VIDEO CLIP)

PHILLIPS: That's what it sounds like when people are mad as hell and not going to take it anymore. Now that their broken government has been getting rich at their expense.

JACQUI JERAS, CNN METEOROLOGIST: Plus I'm CNN meteorologist Jacqui Jeras. Severe thunderstorms rumbling across the upper Midwest and they'll make a return across parts of the southeast. We'll show you the pictures coming up in your forecast.

(COMMERCIAL BREAK)

PHILLIPS: Oh yes. And it gets a lot louder, folks. Just hang on. Bell, California, the capital city in a state of outrage. City council members feeling the pressure. Agreed to cut their salaries by 90 percent.

They were making nearly 100 grand a year for part-time jobs in a town where most of these people live in poverty. The mayor will finish his term with no pay and won't seek another term.

And check out this apology. "To the residents of this great city, I apologize that the council's past decisions with regard to the indefensible administrative salaries have failed to meet that test. We know we have hard work ahead of us to restore Bell's trust even as we work to maintain the unparalleled city services that our families depend on."

As a first step to putting Bell on a new path forward in our governments, the mayor goes on to say, "I will continue to serve our city without pay through the remainder of my term."

Tell to it the flabbergasted attorney general. Gerry Brown has opened up an investigation into Bell's bloated salaries now. He and the rest of the country want to know why the city manager was making about 800 grand a year and why the police chief was making more than the president of the United States.

People in Bell have been protesting since the fat cat got out of the bag. Things boil over at the city council meeting last night.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And right now I'm angry to let you all know that you all need to go to jail. So that we don't have to pay you not one cent.

UNIDENTIFIED MALE: What we would really like to do is see every one of you in jail. I'd like to see all of you in orange jumpsuits says L.A. County Jail in the back of them. That's the best thing that could happen to me. That is on my bucket list.

(END OF VIDEO CLIP)

PHILLIPS: Oh, boy. Well, this story has really snowballed since we first brought it to you. We're going to have a lot more on the story at the top of the hour.

And we're bracing for courtroom fireworks as the Rod Blagojevich corruption trial comes to a close. Illinois's ex-governor is facing handful of charges involving his alleged get-rich quick schemes to sell or trade president Obama's old senate seat. The defense is minutes away from starting its closing arguments. But the prosecution already had its turn, saying the foul-mouthed politician talked his way over the legal line. Here is where he's discussing that on Oprah as a possible senate candidate.

(BEGIN VIDEO CLIP)

ROD BLAGOJEVICH, FORMER GOVERNOR OF ILLINOIS: This would be huge. She's a kingmaker. She made Obama. We know she's a Democrat. We know she's for Obama.

UNIDENTIFIED MALE SPEAKER: So you're trying to shed some grace on thee by picking her?

BLAGOJEVICH: What do you mean?

UNIDENTIFIED MALE SPEAKER: Meaning, isn't it just simply you're looking for a celebrity to be your friend?

BLAGOJEVICH: No, not at all. This one's a -- she's so up there, so high. Nobody can assail this pick. This would be huge.

(END VIDEO CLIP)

PHILLIPS: Blago pleaded not guilty. But if the jury convicts him, he faces up to $6 million in fines and a 415-year prison sentence, though he'd get less under federal guidelines.

But it isn't just the ex-governor's big mouth that's making news in this trial. Late yesterday, the former governor's attorney got into it with the judge about what can and can't be said in closing arguments. And the lawyer went so far as to say he's willing to go to jail. Attorney Terry Sullivan watched it all happen yesterday. He joins me now on the phone to explain the latest courtroom drama. So, what do you think? Is Adams, Jr. calling the judge's bluff here?

TERRY SULLIVAN, ATTORNEY (via telephone): Well, I don't know if you could call it that, Kyra. I think, if nothing else, there were certainly a lot of fireworks, as you said, in the courtroom yesterday.

The defense has said all along that the judge has not answered favorably to them during the entire trial, and tries to back it up with some of the motions that they make. But what they're trying to do now is they're trying to say in closing arguments that the government brought up all these characters. Most of them convicted felons now, of course, sitting across in the street in the correctional center. That they brought these people up to try to dirty up the governor, but they didn't bring them as witnesses. They just talked about them and tried to link them to the governor.

So what the defense wants to do is they want to argue to the jury, "Where are these people? Why didn't they call them?" And the old advertisement, "Where's the beef?" And the judge has said, "Not in my courtroom, you're not going to." And then Sam Adam Jr., one of the attorneys, said, "Judge, I have to in order to defend my client, he's fighting for his life. And I plan on doing it." And the judge said, "Well, then, you'll be in contempt of court."

PHILLIPS: What's Blago's attorney doing here? Is he just stalling so he can do all the closing arguments in one day, as in, today?

SULLIVAN: Closing arguments should be done in one day. But I don't think there's any stalling going on. I think the fact of the matter is that the judge, in his -- with his intelligence said, "Look, we'll reconvene tomorrow." This was yesterday. "We'll reconvene tomorrow. Think it over. And if you don't think you can live with my orders, then somebody else other than you, another attorney, had better make the closing arguments."

So, we're really, really fighting with a lot of constitutional questions. It's due to resume -- I've seen the attorneys go upstairs already, and it's due to resume in just a minute, or a few minutes.

PHILLIPS: All right, let us more what happens. Terry Sullivan, if you don't mind. Call in and let us know what the outcome is.

SULLIVAN: OK, Kyra.

PHILLIPS: Terry, thanks.

A room with a view here. And it's not a very comforting one. CNN iReporter Beth Alice took this video of Sunday's bad weather in the Bronx from her 18th-floor apartment balcony. The National Weather Service is now saying that this was a tornado with 100-mile-an-hour winds. Take a look at what the tornado did in her neighborhood. She says she and her neighbors were dismayed at all the debris. The National Weather Service reports that this was the first tornado to hit the Bronx since 1974. Jacqui Jeras in the Severe Weather Center. Yuck. Nasty looking stuff.

JACQUI JERAS, AMS METEOROLOGIST: I know. And DC got hit really hard on Sunday as well.

PHILLIPS: Lost a lot of power.

JERAS: They did, and a lot of those people still don't have it, unfortunately. Those temperatures continue to stay very hot. We also had severe weather last night in parts of Montana. Two people were killed by a tornado there.

And, yes, more severe weather expected today. Want to show you some pictures out of the Atlanta area that got hit very hard yesterday afternoon. This was in the northern suburbs. We had widespread wind damage, trees down, power lines out, and fair amount of flash flooding, some major delays at Atlanta Hartsfield-Jackson International Airport.

And more of the same can be expected for today. A very active weather pattern here for the southeast. A lot of moisture and humidity in place. And those storms are going to continue to rumble. You can see them moving across Tennessee, Kentucky, on through Carolinas and Virginia at this hour. And we expect it to become much more widespread into the afternoon hours. So do expect to have some more trouble there.

Now, the other -- upper Midwest is our other big weather focus for severe thunderstorms, and we've been tracking a line of severe thunderstorms across central parts of Minnesota. See how this line just bows out there. That's indicative of some very strong winds. So we could see damage with those winds, maybe 60, 70 miles per hour. And those storms will move southward down towards Minneapolis and into northwestern parts of Wisconsin later on today. So a slight risk of that severe weather here.

Elsewhere, we're going to see some pop-up thunderstorms across parts of the South, and that's where a lot of that heat is going to continue to stay confined for today. Yesterday, we had record highs again. This is, what? At least the fourth day in a row that you've been see thing.

Check it out. Athens, 103, 102 in Savannah, Georgia. Columbus, up there at 99. The tri-cities, Tennessee, at 96, and 89 in Laramie, Wyoming. Yes, even Wyoming dealing with the heat.

Here's where the advisories are today across parts of Georgia and South Carolina. Feeling like 105 to 115 degrees. And we even have heat advisories from my hometown, Minneapolis-St. Paul. How about that? You're going to feel like about 105 this afternoon,, as well as Omaha, Nebraska.

So, things continue to stay very active, Kyra. In the next hour, we'll talk a little bit more about some world break -- record -- I can't say this. World record weather. That's a mouthful, isn't it? PHILLIPS: World record -- Yes, now say it five times really fast. I know I can't. Thanks, Jacqui.

Are you putting your personal financial information at risk? One bank is warning about an iPhone app that could.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories. Day 99 in the Gulf oil disaster, and BP's top executive on his way out. BP says that Tony Hayward is being replaced by American Bob Dudley, a chemical engineer who grew up in Mississippi. Hayward will leave as CEO at the end of September. Dudley has been charged of the day-to-day operations on the Gulf since last month.

The Pentagon hoping to plug some leaks. "The Wall Street Journal" reports that the Pentagon wants the computer hard drive belonging to army intelligence Bradley Manning. Manning already charged with leaking classified information. The website WikiLeaks has released secret reports on the war in Afghanistan, going back more than five years.

Joint Chiefs chair Mike Mullen arrived in Baghdad today after a two-day visit to Afghanistan. Mullen is reviewing plans to pull all combat troops out of Iraq by the end of next month.

(COMMERCIAL BREAK)

PHILLIPS: Citibank customers doing their banking by way of an iPhone will want to listen up. Your personal account information could be at risk. Citibank is warning customers who utilize their mobile banking services by way of iPhone to update the new application software being offered. The older version apparently has a security flaw allowing a user's account information to be mistakenly saved.

On the other side of the world, the United Arab Emirates is trying to decide if the Blackberry Smart Phone is a national security threat. UAE's official state news agency says the government is concerned that data on Blackberries is managed from outside of the country. The government issued a statement saying certain Blackberry applications allowed people to misuse the service, causing serious social, judicial and national security repercussions. The Blackberry came into use in the UAE in 2006, one year before the government introduced new security legislation.

Talk about bargain hunting. A California man stumbles upon a multimillion-dollar collection of negatives shot by famed nature photographer Ansel Adams, for a measly 45 bucks. That's right. The man picked them up at a garage sale years ago. A recent appraisal of the glass negatives that were thought to have been destroyed years ago in that fire, puts them at least $200 million.

Illegal immigrants in Utah just want to know one thing. Am I on the list or not? One man on that list is worried about a knock on his door and what will happen to his wife and child.

(COMMERCIAL BREAK)

PHILLIPS All right. Heading to Wall Street, the Dow rallied by 100 points or more to three sessions in a row, and it looks like the momentum will continue this morning. Carter Evans, hopefully, joining us with more good news. Hey, Carter.

CARTER EVANS, CNN CORRESPONDENT: Hey, Kyra, did you notice who was ringing the opening bell there, by any chance?

PHILLIPS: You know, I wish I could say -- well, here -- actually, let me see if I can see over here. OK. You know what, I have to admit, I don't watch "The Jersey Shore." My producer actually filled me in. I saw a clip of that show, and I don't know if I can stomach it.

EVANS: I was going to say, if you did recognize him by face, I was going to be a little concerned, but yes, a chance of "The Jersey Shore" ringing the opening bell here at the stock exchange today and what a good day to do it. Both the Dow and the Nasdaq yesterday moved back into positive territory for the year. The S&P 500 could do so today. That is despite a dismal earnings report from BP. And the oil giant says it lost more than $17 billion in the second quarter. This is because it took a pretax charge of more than $32 billion to pay for the cleanup.

It is the worst oil spill in U.S. history, and they also planned ahead putting aside a little bit more money than they've spent so far. This is the first look at the company's financial since the Deepwater Horizon rig exploded in April. It is a far cry from BP's results just about a year ago when the company raked in nearly $4.5 billion. BP's shares this morning trading down just about a half of percentage point, but on that announcement that Tony Hayward was leading, boy, they shot up about 5 percent yesterday.

Meanwhile, United Technologies reportedly plans to cut another 1,500 jobs over the course of this year and next. World's largest maker of elevators and air conditioners targeted roughly 15,000 positions to cut during the recession, and it's not clear whether today's cuts are part of that figure.

Let's go ahead and take a look at the early numbers today. The Dow is back on the rise. We had some decent data about home prices across the U.S. and also great earnings from DuPont. That's helping to boost the numbers. The Nasdaq up about 8.5 and the S&P 500 gained about five points. Now, the top of the hour, Kyra, we're going to get the July reading on consumer confidence. As you know, that is so important because consumer spending represents about two-thirds of the economic activity in this country. So, we want to see that people are feeling better about the economy and feeling good about spending money. Back to you.

PHILLIPS: That all sounds good. And by the way, I must clarify, my producer said I read that on e-mail, you let that Carter know that I don't watch "Jersey Shore."

EVANS: OK. PHILLIPS: She is busy watching the news, 24/7. OK?

EVANS: I'm sure. Likely story.

PHILLIPS: Thanks, Carter. Sorry, Pam.

Nissan is recalling more than 51,000 Cube hatchbacks. You know the ones that actually look like a shoe box. You probably see them. Safety regulators say that if the cube is in a rear end accident, that the fuel can spill. So, Cube dealers are installing a special protector now to try and prevent those leaks. Models affected are made in 2009 and 2010.

Arizona's new tough immigration law, SB-1070, it's controversial, it's contested, and it goes into effect Thursday unless something happens. CNN wanted to know what Americans are thinking about the bigger issue of illegal immigration. So, we asked what should the main focus of U.S. policy be? 57 percent said deport illegal immigrants and stop more from coming into the country. 42 percent say that there should be a plan to allow them to become legal residents.

Illegal immigrants in Utah just want to know one thing, am I on the list? Talking about a list that basically says that these 1,300 people shouldn't be here. Here's where they live. Deport them now. Someone might have broken the law making all that information public. Regardless, it thrust Utah into the bigger immigration debate. CNN's Ted Rowlands talked with one man who's on that list.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: Here in the state of Utah, the immigration debate is raging. State lawmakers are drafting a bill similar to Arizona's 1070. Then there is this. Names, addresses, and birth dates of 1,300 alleged illegal immigrants known here simply as the list.

ROWLANDS (voice-over): In the back room of a Salt Lake City market, Latino activist, Tony Yapi (ph), has a hotline for people to call to find out if they're on the list.

UNIDENTIFIED MALE: It's a chilling effect into our community.

UNIDENTIFIED FEMALE: He's not on the list, OK?

ROWLANDS: The list surfaced two weeks ago. Two state employees who are now being terminated allegedly used medical data to come up with the personal information of 1,300 purported illegal immigrants. The list was sent to government agencies, law enforcement, and the media with this letter demanding that the people on the list be deported immediately.

JESUS, ILLEGAL IMMIGRANT: I got here illegally. So -- but I didn't know I was doing a bad thing because I was young by then, but, now, I know it's a bad thing.

ROWLANDS: We met 25-year-old Jesus at a park. He didn't want us to show his home or use his last name. Jesus is on the list. He says he lived in Utah illegally since he was 15 when he says his father brought him here from Mexico. He has a wife who is also here illegally and a 2-year-old daughter who was born in Utah.

JESUS: It's pretty sad and scary because what if somebody comes to your door and knock, hey, let's go.

ROWLANDS: Jesus says the tension he feels living in Utah is growing with the ongoing immigration debates and now the list.

ELI CAWLEY, UTAH MINUTEMAN PROJECT: I think that there is fear in the hearts of these illegal aliens, I celebrate that.

ROWLANDS: Utah minuteman, Eli Cawley, is pretty clear on where he stands.

CAWLEY: They swam here. They walked here. They crawled here. By whatever way they got here, they can go back that way.

ROWLANDS: Cawley says people may call him a bigot, but he believes a lot of Utah is on his side when it comes to illegal immigration. In an April poll, 65 percent of Utah voters surveyed said they support an Arizona 1070-type law here. One is in the works and is expected to pass next year.

UNIDENTIFIED FEMALE: I'm tired of the lack of civility, I'm tired of the hatred, and I'm tired of the hostility. I think Utah -- the majority of Utahans are about that.

ROWLANDS: Last week, Republican governor, Gary Herbert, posted a discussion on illegal immigration. While there were disagreements on what if anything the state should do about it, all sides were quick to blame the federal government for not doing something years ago.

CURT BRAMBLE, UTAH STATE SENATE: In the absence of federal action on this, there may be no other alternative but for states like Utah to move forward.

ROWLANDS: As for the list, the attorney general announced a criminal investigation into the leak, although, Jesus admits he is in the country illegally, officials say some of the people on the list are here legally.

Do you think you should be able to stay?

JESUS: Yes. I think I should have the chance to stay here.

ROWLANDS (on-camera): You can see Jesus' name here on the list. What he is hoping is that the federal government will pass some sort of immigration reform that has a path to citizenship for he and his wife. He says if that doesn't happen, however, he does have plans to move back to Mexico if forced.

Ted Rowlands, CNN, Salt Lake City, Utah.

(END VIDEOTAPE) PHILLIPS: Jesus definitely feeling the heat. Nothing new.

They're accused of breaking up families, deporting some immigrants from minor infractions, and allowing more flagrant lawbreakers to live in plain sight. All of it under the microscope of a country passionately divided. CNN's "American Morning" John Roberts spoke with the man who actually heads the U.S. Immigration Customs Enforcement Agency. He joins us now for "A.M. Extra." So, John, what did he have to say?

JOHN ROBERTS, CNN CORRESPONDENT: Good morning to you. We talked to John Morton this morning with the Arizona law scheduled to go into effect some 48 hours from now. It's interesting to know that the Obama administration expects to deport 400,000 people this year. And last year deported 10 percent more than the previous year, the Bush administration, 25 percent more in 2007. So, the Obama administration insists that at stepping up enforcement, it is enforcing the law. Of course, it's getting criticized, as you can imagine, from both sides.

Hal Rogers, Republican from Kentucky, says that the primary focus on criminals and repeat law breakers and not everyone who is undocumented in this country illegally, it's a form of, quote, "selective amnesty," while at the same time, the National Council of La Raza says while the administration has indicated to its enforcement officers not to deport parents or not to target parents who are looking after children, they say that doesn't always happen.

The families are still being broken up, and according to Clarissa Martinez (ph) from La Raza, says, quote, "the gap between the intent and the reality is very, very wide." So, I put both of those criticisms to Morton this morning. Here's what he told me.

(BEGIN VIDEO CLIP)

JOHN MORTON, U.S. IMMIGRATION & CUSTOMS ENFORCEMENT: I think there is a disconnect between some of our critics on the far left and on the far right. The truth of the matter is we are making significant reforms to the detention system, and we're just exercising common sense. We have about 30,000 detention beds on any given day that are available to detain people for removal purposes, and it doesn't make sense to put a pregnant mother in that detention bed when she will show up for her hearings without being detained or to put somebody who has terminal cancer in that detention bed. We need to put a criminal in that bed. We need to put somebody who's a risk of life (ph) or a danger to the community.

(END VIDEO CLIP)

PHILLIPS: So, John with the increase of possible deportations then, what did John Morton say about ICE being prepared to handle all of that? Could it?

ROBERTS: The 400,000 that they're deporting this year expected to really is about the limit of what they can achieve. So, what Arizona's law expected to go into effect unless there's some court challenge that stops it with other states thinking of passing similar laws, it would definitely put a new burden on ICE because they would get all of these new reports of people being in this country illegally. Here's what Morton told me this morning.

He says, we're going to take things as they come. Don't want to speculate at this point as to what we will get. But he said that there are obviously some challenges as to exactly what they can do in terms of enforcement which is why they're targeting, quote, "certain classes of offenders over others." So, it may be, Kyra, that if Arizona starts to report more people in this state illegally because Arizona doesn't have the jurisdiction to do anything about it. They have to just report it up the line to the federal chain. That they may have to, again, be even more selective in who they target for deportation.

No question that if this law goes into effect, lot more reports are going to come over their transom, and it will be a challenge for them to deal with.

PHILLIPS: John, thanks. And that's what we're talking about, the countdown to the controversy. Just two more days before Arizona starts enforcing its tough new immigration law. You've seen the protests. You've heard the accusations. So, do you really know the reality? We're going to tell you what's really in the law.

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PHILLIPS: Checking top stories in Chicago. Closing arguments set to resume in just a few interests in the Rod Blagojevich corruption trial. The former Illinois governor is accused of trying to auction the U.S. senate seat formerly held by President Obama.

A major about-face in Bell, California where public backlash prompts the city's well-paid mayor and city council members to cut back on their hefty salaries. California's attorney general, Jerry Brown, is now investigating whether or not any laws were broken.

BP's CEO, Tony Hayward, soon to be out of the picture. The company's board of directors replacing the British chief executive with American, Bob Dudley, on October 1st. The announcement comes on the heels of BP's quarterly business report which notes a $17 billion loss.

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KYRA PHILLIPS, CNN ANCHOR: The GOP is standing by controversial conservative blogger Andrew Breitbart. He is the guy who posted that edited video that cost Shirley Sherrod her job at the Department of Agriculture.

Now Breitbart is scheduled to headline a fund-raiser for the Republican National Committee next month with party chairman, Michael Steele. Tickets to the Beverly Hills retreat cost up to $68,000 per couple.

House Democratic leaders are preaching patience awaiting an ethics committee report on veteran Congressman Charlie Rangel of New York. The 20-term representative has been under the microscope of the ethics committee for a while. And investigators have focused on everything from fund-raising to the use of rent-controlled apartments.

The report is due out on Thursday. And until then, Rangel is going about his work on Capitol Hill.

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REP. CHARLES RANGEL (D), NEW YORK: Thursday, another report will be given to the adjudication committee on Thursday. That's all I know. That's all I know.

UNIDENTIFIED MALE: So what are you preparing for in the meantime?

RANGEL: I don't know yet. But I will find out today, because I have to find out what they are going to do on Thursday. And then I will be prepared for it.

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PHILLIPS: House Speaker Nancy Pelosi and Majority Leader Steny Hoyer say that they have not spoken with Rangel about the matter.

You know how much stadium food costs? Seven bucks for a hot dog, an arm and a leg for a drink; but what you might not know is how nasty that food might be. Let's put it this way. That's not in (INAUDIBLE) worm in your frozen margarita. I've got a cool and kind of scary Web site to show you coming up.

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ELMER FUDD: Be very, very quiet. I'm hunting rabbits.

BUGS BUNNY: What's up doc?

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PHILLIPS: And who hasn't uttered that classic line? Our furry little friend Bugs Bunny, the (INAUDIBLE) carrot, hole-digging rabbit looking pretty good to be as old as he is. Bugs have been avoiding Elmer Fudd's double-barreled shotgun for 70 years now.

He made his debut as a star in the cartoon "A Wild Hare" way back on this day in 1940, but according to a Looney Tunes Web site, Bugs first appeared in "Porky's Hare Hunt" in 1938. Bugs Bunny, a classic indeed.

Oh, yes. It's the national past time. Take me out to the ball game just remember to bring plenty of Pepto or at least eat before you go. This story is probably going to gross you out.

ESPN's "Outside the Lines" has put together a map of sports venues across the country and focused on the health inspections of the food that they sell. It might be worth a look before you go to the ball game and spend a fortune on food.

Check out the places where nearly all the vendors failed health inspections. Like right here, take a look at this. In Miami, Florida, Sunrise Stadium, that's no tequila worm my friends. Apparently an employee complained about bugs and other debris blended into frozen alcoholic beverages. Inspectors later busted the vendor for a buildup of slime on the machine. Cheers.

Well, then there's Raymond James Stadium in Tampa, undercooked chicken. Enjoy that stomach ache. There you go.

But of all the big fails in Florida, well, there's some reasons I guess another big fail in Verizon Center in D.C., take a look at this. If you read what the -- the inspection report says they had an issue with mouse droppings. Yes, the hotdog is seven bucks but the mousy mess, is absolutely free.

There are place with no violations too though. Chicago's places are pretty clean like Wrigley Field and U.S. Cellular Field, where the White Sox play. Scott Trade Center, in St. Louis gets high marks too. And you can actually find all of this on ESPN's Website. Definitely worth a look before you head out to the ball games.

All right, sports fans, tell me your grossest stadium or arena food experience. Slimy margaritas, hotdog with ketchup relish and roast beef. Go ahead and light up the blog, CNN.com/Kyra. We can't wait to read these. And help you wake up with all the disgusting stories this morning.

All right. We've got a lot going on in the CNN NEWSROOM. Let's see what our correspondents are working on for the next hour. Let's go and start with Josh Levs right there in the CNN NEWSROOM.

JOSH LEVS, CNN CORRESPONDENT: Still recovering from those images. Thanks a lot for that this morning, Kyra.

Listen, I have some news for you. The Arizona immigration law has gone through a bunch of changes. So at this point what does it actually say? I'm going to break it down for you in the next hour.

CARTER EVANS, CNN CORRESPONDENT: Well, I'm Carter Evans at the New York Stock Exchange. We're keeping an eye on BP today. The oil giant now trying to shift the focus to the future after posting a huge loss. More on that coming up.

JACQUI JERAS, AMS METEOROLOGIST: And I'm CNN meteorologist Jacqui Jeras. Severe storms caused lots of damage in the upper Midwest yesterday and travel trouble on the southeast. Where will the hot spots be today? Plus heat advisories. That's coming up in your forecast.

PHILLIPS: And what a difference a little outrage makes. The people of Bell, California mad as hell and doing something about it. They didn't take their broken, self-serving government sitting down. Now their fat cat civil servants have caved to the pressure. The latest developments at the top of the hour.

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PHILLIPS: Mass graves discovered near Juarez, Mexico. We've heard that story time and time again, but this time cops say 51 bodies in all were found in several makeshift burial plots. Now cops are trying to ID the deceased but it's going to be difficult because many of them were burned beyond recognition. Police suspect the dead may have had a connection to the country's feuding drug cartels blamed for thousands of killings.

And how some of those murders are allegedly orchestrated will astound you. Call it a prison work release program gone really wrong. Four prison officials in Mexico's Durango state accused of letting inmates out to do the murderous business of the drug cartels.

CNN Rafael Romo has the details on the video that brought those allegations to light.

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RAFAEL ROOM, CNN CORRESPONDENT: The video widely played by Mexican media shows a police officer being interrogated by members of a violent drug cartel believed to be Los Zetas. Flanked by two heavily armed men, the police officer with signs of having been beaten makes explosive allegations against prison officials and a rival drug cartel.

He was later shot at point blank range and killed. But CNN has chosen not to air that part of the clip.

Three days after this video was made public, Mexican authorities confirmed they detained four prison officials in Gomes Palacio, a city in the northern state of Durango, just south of Texas.

A spokesman with the Mexican attorney general's office said that the inmates at the Durango prison were allowed to leave at night to carry out vendettas and executions using prison vehicles and weapons assigned to prison guards. Margarita Rocas Rodriguez (ph), the prison's director was among the arrested as well as the prison's assistant director and two security supervisors who are fully aware of what was allegedly going on at the prison according to Mexican authorities. They haven't been charged, and attempts to reach them were unsuccessful.

The Mexican interior minister blasted prison officials saying that instead of fulfilling their duty, they were complicit with the criminals by allowing them to get out to commit deplorable acts. Mexican authorities say that working under the orders of drug cartels, the inmates are responsible for a massacre in the city of Torreon where at least 17 people were killed at a private party in June; 18 others were wounded in the attack.

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PHILLIPS: And CNN's senior Latin affairs editor, Rafael Romo joins us now actually with an update. You're saying the prison still out of control even with this media attention?

ROMO: Exactly. There was a demonstration. Prisoners were rioting, and one of the prison guards was stabbed to death. That happened just last night.

And again, the prison totally out of control; four of the top officials were let go because of what happened. They're behind bars now. And now we have this riot and prisoners actually being able to kill one of the prison guards.

PHILLIPS: So who's running the prison now?

ROMO: Apparently the drug cartels and that's the problem here. The drug cartels were so powerful and so infiltrated the prison that they were able to allow. Had prison officials allow the prisoners to get out and commit this massacre, as many as three more that we know of. But, who knows. Maybe in the past there were even more than three.

PHILLIPS: No, it's unbelievable to see the power of these drug cartels, and, you know, going up against police and military is still not even enough. So -

ROMO: And the problem in that area is that you have two drug cartels, very powerful, fighting for territory. That's the beginning of all the problems.

PHILLIPS: Well, we'll follow the story. Thanks, Rafael.