Transcripts For WUSA 60 Minutes 20140217

Faces thats not particularly beautiful, not too ugly, you know. I can look. Stahl come o. A bit masculine, i can look a bit feminine, depending on how youre lit, how youre shot. Im steve kroft. Im lesley stahl. Im morley safer. Im bob simon. Im scott pelley. Those stories tonight on 60 minutes. I found myself unemployed, and have two small children, and i went job hunting. I put in over 200 applications. When i was really faced with having to feed my children, about to lose my home, i stepped out on faith and started my own company. My son told me that he was proud of me. That meant everything. Now im pretty sure that i can do absolutely anything. [ female announcer ] mutual of omaha. Insure your possibilities. Insurance. Retirement. Banking. Investments. Hey, is it true we can get four lines, unlimited talk and text and 10 gigs of data to share for 160 a month . Yep. At ts new family pricing. Thats 100 bucks cheaper than us. I know. Are you guys with verizon . 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It targets fine lines and wrinkles with the fastest retinol formula available. Youll see younger loo skingkin in just one week. One week . This ones a keeper. Rapid wrinkle repair. And for dark spots rapid tone repair. From neutrogena®. Pelley russia has been showing the world glistening scenes of the winter olympics. Its a rare opportunity to brighten a National Image that often skates on the thin ice of corruption. One authority estimates that 20 of the russian economy is skimmed by graft, and a lot of that by government officials. It may be that no one knows more about this than americanborn businessman bill browder. Browder tells a story of thievery, vengeance and death worthy of a russian novel. Hes a thorn in the side of vladimir putin, and he has torn a rift between moscow and washington. When you hear what he has to say about russia, youll know why russia thinks of bill browder as an enemy of the state. Bill browder the russian regime is a criminal regime. Were dealing with a Nuclear Country run by a bunch of mafia crooks. And we have to know that. Pelley bill browder wanted us to know hes dedicated his life and his wealth to putting certain russian officials in prison. In russia, theres a warrant out for browders arrest, but that is not what worries him. You think your lifes in danger . Browder my life is definitely in danger. Pelley why do you say that . Browder weve gotten numerous Death Threats by text, by email. Pelley what do the texts say . Browder things like, whats worse, prison or death . Pelley those werent the two options browder imagined he would face back in 1996 when he first landed in moscow. The new russia was then a vast opportunity where business invested its money and russians invested their hopes. The government was selling off relics of communism, big state owned companies that were inefficient and corruptly managed. Browder invested in those companies and pushed to throw out the crooked management. How did it make sense to you to invest hundreds of millions of dollars into these companies if you knew that the management was stealing from the bottom line . Browder we said to ourselves, if we can own them cheap on a profitafterstealing basis, and we can stop the stealing, then theyll be even cheaper and therefore we can make a lot of money. Pelley stopping the stealing was a way of padding your bottom line . Browder i had the best job in the world, which was making money and doing good at the same time. Theres very few jobs that you can actually do that in. Pelley in those days, billionaires were grabbing companies. Rules were loose and lines were crossed, but it was a world that browder navigated well. He earned a reputation as a tough negotiator with sharp elbows when he needed them. He made enemies and a spectacular fortune. Browder by the top of my career, we were the largest Investment Fund in russia, with more than 4. 5 billion invested in the country. If you had put your money in and then took it out when i left russia, you wouldve made 35 times your money investing in the fund. Pelley it was lucrative and dangerous. Hundreds of billions of dollars were sloshing around in what was essentially a new country, where neither the government nor the courts had come of age. Browder says he learned what that could mean in 2005. After a flight from london back to moscow, his charmed life was suddenly crushed under the stamp of a passport inspector. Browder i was stopped at the Airport Detention Center for about 15 hours, and then they deported me from russia and declared me a threat to national security. Pelley what was dawning on you as you sat in that detention area . Browder i could only think that somehow. This must be a mistake because i couldnt have imagined, at that point, that i didnt think that id gone against the government. I thought i was going against some crooked guys. Pelley according to browder, it turned out there were some crooked guys in the Russian Tax Service, their version of the i. R. S. 19 months after browder was deported, a squad of police raided his office and the offices of his lawyer. The police left with the ownership documents for browders companies. Those documents were then used to reincorporate the companies under new owners. Browder says it was part of a scheme by an organized crime group consisting of tax service bureaucrats, police, bankers and lawyers. Wait a minute the ownership of your company was transferred to someone else without your knowledge or participation . Browder exactly. Pelley the company was stolen . Browder our company, our three companies were stolen using the documents seized by the police. Pelley then, browder says, the new, phony owners applied to the Russian Tax Service for a refund that wasnt due. Browder they basically took our companies, and then applied illegally for a 230 million tax refund, which was approved in one day on Christmas Eve 2007. Pelley merry christmas. Browder merry christmas. It was the largest tax refund in russian history, approved in one day, no questions asked. Pelley how does that happen . Browder we werent sure. We thought there. This certainly must be a rogue operation with highlevel people involved because, to get a tax refund of 230 million, it involves a ministerlevel person to approve it. Pelley bill browder says he needed an honest man to investigate, and found him in Sergei Magnitsky, a moscow tax attorney who colleagues said had never lost a case. Browder sergei was the kind of person that everybody should want to have in their life. He was a man of principle, a man of competence, and a true friend and a true person. Pelley magnitsky was one of those who had invested his hopes in the new russia. Hed married his High School Sweetheart and they were raising two boys. Browder he believed in the new russia. He was the new russia. Pelley magnitsky believed in the rule of law . Browder he believed in the rule of law and he thought the law would protect him. Pelley magnitsky went to work, unraveled the theft and identified suspects. One of them, he believed, was a Lieutenant Colonel with the police, Artem Kuznetsov, the man who led the raid on browders office. Magnitsky took his evidence to prosecutors, testified and demanded an investigation. He got one, but not the one he expected. In an extraordinary turn of events, the police raided magnitskys apartment; his arrest warrant had been ordered by the same Artem Kuznetsov. Tell me about the moment he was arrested. What did the Police Officers tell you . Magnitskys wife, natalia, says that he was arrested for tax evasion. Natalia translated they didnt tell me anything. Sergei tried to calm me down. He said to me, i will be back tomorrow. And we expected that he would be back the next day or the day after that. And he was in prison for about a year. Browder they put him in pretrial detention, and then they began to torture him to get him to withdraw his testimony. Pelley what do you mean torture him . Browder they put him in cells with no windows and no heat in december in moscow, so he nearly froze to death. They put him in cells with no toilet, just a hole in the floor where the sewage would bubble up. And after about six months of this, his health started to really break down. Pelley instead of being hospitalized, magnitsky was transferred to butyrka, a jail with limited medical facilities. He wrote hundreds of complaints, and theres even a prison record of a beating that the guards gave him. In all, he was held for nearly a year without trial. Browder he and his lawyer desperately applied in writing on 20 different occasions for medical attention. All of his requests were either ignored or rejected. Pelley this is magnitsky, in the light jacket, in the prison in 2009. He was being transferred to a medical facility. He was 37 years old and would be dead in a few hours. Prison officials called it a heart attack. Magnitskys hands and wrists tell a story which is less clear. His mother natalia wanted an independent autopsy, which the government denied. Natalia magnitskaya translated in the photos, we saw deep, deep wounds, suggesting that violent force was used against him, and that he was defending himself or they were pulling him by his arms, because those kinds of marks couldnt be just from wearing handcuffs. Pelley magnitskys death was something of a sensation. To citizens weary of corruption, he was a martyr. In america, browder brought magnitskys mother, wife and son to capitol hill. Nice to see you again, my friend. Pelley browder told his version of magnitskys death to congress, and in 2012, convinced members of the senate and house to pass the magnitsky act. Browder well never be able to bring sergei back. Pelley the act bans 18 russians from entering the u. S. , including Artem Kuznetsov and other police and tax officials allegedly involved in the theft of browders companies. Days later, in retaliation, the Russian Parliament banned american adoption of russian children. U. S. russian relations havent been the same since. In a news conference, vladimir putin, who has run russia for 14 years, insisted magnitskys heart had failed. And he added, do you think no one dies in american jails . Of course they do. So what . How did you hear of his death . Browder it was november 17, 2009. I got a phone call from our russian lawyer. And it was by far the most unexpected and horrible news that i could ever have gotten. It was like a knife being plunged right into my heart when i got that call. Pelley that was a knife that russian authorities would twist. Last year, prosecutors put magnitsky and browder on trial. Empty benches sat in the court as the defendants one deported, the other dead were tried for tax evasion. Why should we believe it isnt true . Look, you went to business there in the early period after the fall of the berlin wall when everything was possible. And you went in there and you made spectacular amounts of money. Now, the russians say one of the ways you did that was by beating russian taxes. Browder well, one possibly could believe that, if you didnt look at the circumstances of events. If the person who organized the criminal cases against us was the person who stole 230 million and then we exposed; then, they killed my lawyer and now theyre putting him on trial. It kind of destroys the credibility of any allegations they make. Pelley bill browder has turned part of his London Office over to his own group of investigators, who have followed the money from the theft. Browder this tells you whos in the organized crime group. Pelley the results of the investigation are on his web site. His evidence includes titles for 81,000 cars owned by Police Officers, and deeds for three vacation homes and a mansion owned by a midlevel tax service bureaucrat. And the estimated value of that house is what . Browder 20 million. Pelley 20 million . Browder 20 million. And just to remind you, these are people on a joint Family Income on 38,000 a year. I can even show you their tax return. Pelley where do you get all this stuff . How is it that you have their tax return . Browder in this particular case, we were approached by a russian whistleblower, a guy who decided that, you know, murder was beyond what he was comfortable being involved with. Pelley whats happened to these people now that youve exposed them . Browder a number of them received state honors. Theyre still valued people, no matter what anyone says about them abroad. Pelley what does that tell you . Browder that tells me that this goes right up to the president of russia. Pelley why do you say so . Browder because the president of russia has basically gone on record, and hes denied that there was any crime that was committed by any official. Hes on the record saying Sergei Magnitsky was a crook, and hes gone on the record saying that im a crook. Hes clearly involved in the coverup. Pelley putin denies browders allegations. Lieutenant colonel kuznetsov did not respond to our calls, but a lawyer has denied wrongdoing on his behalf. Just last summer, the moscow court convicted the two empty benches and issued a warrant for bill browders arrest. Browder what they didnt anticipate was that, after sergei died, that i would make it my lifes work to make sure that this information saw the light of day, and that the people who killed sergei didnt get away with it. Pelley your lifes work . Why . Browder sergei worked for me. They arrested him for working for me. They tortured him for working for me. And they killed him. Basically killed him as my proxy. And i. I owe him, his memory and his family justice. Pelley in the latest development, the u. S. Department of justice has filed suit against 11 companies, alleging that they used manhattan real estate transactions to launder some of the money stolen from the russian treasury through that tax refund. The Putin Administration acknowledged last december that a lack of confidence in russian justice is causing many investors to take their money out of the country. Cbs money watch update sponsered by good evening. The fundraising site tix order says Customer Data was hacked. 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Enter the cbs cares colonoscopy sweepstakes. You can be our numero uno. opera continues you can be our numero uno. Pelley now, cbs news correspondent david martin on assignment for 60 minutes. Martin the f35 joint Strike Fighter is the pentagons newest warplane, and its most expensive weapons system ever, nearly 400 billion to buy 2,400 aircraft. To put that in perspective, thats about twice as much as it cost to put a man on the moon. This at a time when the white house and congress are fighting over ways to reduce the federal deficit, and cuts in defense spending are forcing the pentagon to shrink the size of the military. The air force, navy, and marines are all counting on the f35 to replace the war planes theyre flying today. If it performs as advertised, the f35 will enable u. S. Pilots to control the skies in any future conflict against the likes of china or russia. But the f35 has not performed as advertised. Its seven years behind schedule and 163 billion over budget, or as the man in charge of the f35 told us, basically, the program ran itself off the rails. Chris bogdan good morning. Martin Lieutenant General chris bogdan is the man in charge of the f35, and every morning starts with problems that have to be dealt with a. S. A. P. This morning, its a valve thats been installed backwards and has to be replaced. Bogdan how long es it take . Its about a seven day operation. Bogdan okay. And now, you know what im going to say next. Yes, sir. Bogdan what am i going to say next . Youre going to say, were not going to pay for it. Bogdan thats right. Were not going to pay for it. Long gone is the time where we will continue to pay for mistake after mistake after mistake. Martin when bogdan took over the f35 program a year ago, it was behind schedule, over budget, and relations with the planes manufacturer, Lockheed Martin, bordered on dysfunctional. How would you characterize the relationship between the pentagon and Lockheed Martin . Bdan im on record, after being in the job for only a month, standing up and saying it was the worst relationship i had seen in my acquisition career. Martin these planes coming off the Lockheed Martin Assembly Line in fort worth cost 115 million apiece, a price tag bogdan has to drastically reduce if the pentagon can ever afford to buy the 2,400 planes it wants. Bogdan i know where every single airplane in the production line is on any given day. You know why thats important . Because Lockheed Martin doesnt get paid their profit unless each and every airplane meets each station on time with the right quality. Martin so if this plane doesnt get from that station to this station. Bogdan on time with the right quality, theyre going to lose some of their fee. Youve got to perform to make your profit. Martin they must love you at Lockheed Martin. Bogdan i try and be fair, david, and if they want what i call winners profit, they have to act like and perform like winners, and thats fair. Martin although the f35 wont begin to Enter Service until next year at the earliest, pilots are already conducting test flights and Training Missions at bases in california, florida, maryland, arizona, and nevada. Its supposed to replace virtually all the jet fighters in the United States military. Theres one model for the air force, another for the navy designed to catapult off an Aircraft Carrier and a third for the marines, which seems to defy gravity by coming to a dead stop in midair and landing on a dime. David berke this is a fighter that has amazing capabilities in a lot of ways. Martin Lieutenant Colonel david berke says theres no comparison between the f35 and todays jet fighters. Berke im telling you, having flown those other airplanes, its not even close at how good this airplane is and what this airplane will do for us. Martin we have planes that are as fast as this. Berke you bet. Martin and can maneuver just as sharply as this one. Berke sure. Martin so why isnt that good enough . Berke those are metrics of a bygone era. Those are ways to validate or value an airplane that just dont apply anymore. Martin you can see from its angled lines, the f35 is a stealth aircraft designed to evade enemy radar. What you cant see is the 24 million lines of Software Code which turn it into a flying computer. Thats what makes this plane such a big deal. Berke the biggest big deal is the information this airplane gathers and processes and gives to me as the pilot. Its very difficult to overstate how significant of an advancement this airplane is over anything thats flying right now. Martin without the f35, says air force chief general mark welch, the u. S. Could lose its ability to control the air in future conflicts. Mark welch air superiority is not a given, david. It never has been. And if we cant provide it, everything we do on the ground and at sea will have to change. Martin todays enemies, al qaeda and the taliban, pose no threat to american jets. But welch is worried about more powerful rivals. Welch were not the only ones who understand that going to this next generation of capability in a Fighter Aircraft is critical to survive in the future of battle space, and so others are going notably, now, the chinese, the russians and well see more of that in the future. Martin and this is what the competition looks like the russian t50 and chinas j20 stealth fighter. According to welch, they are more than a match for todays fighters. Welch if you take any older fighter, like our existing aircraft, and you put it nose to nose in. In a contested environment with a newer fighter, it will die. Martin and it will die because . Welch it will die before it even knows its even in a fight. Martin in aerial combat, the plane that shoots first wins, so it all comes down to detecting the enemy before he detects you. The f35s combination of Information Technology and stealth would give american pilots what marine Lieutenant General Robert Schmidle describes as an astounding advantage in combat. Robert schmidle i shouldnt get into the exact ranges, because those ranges are classified, but what i can tell you is that the range at which you can detect the enemy, as opposed to when he can detect you, can be as much as ten times further when youll see him before hell ever see you, and down to five times. Martin i want to nail that down here. If the f35 was going up against another stealth aircraft of the kind that other countries are working on today, it would be able still to detect that aircraft at five to ten times the range. Schmidle you would be safe in assuming that you could detect that airplane at considerably longer distances than that airplane could detect you. Martin the f35s radar, cameras and antennas would scan for 360 degrees around the plane, searching for threats and projecting, for example, the altitude and speed of an enemy aircraft onto the visor of a helmet customfitted to each pilots head. It is so topsecret, no one without a security clearance has ever been allowed to see what it can do. Alan norman if you want to head up to my office, come on up. Martin . Until Lockheed Martins chief f35 test pilot alan norman took us into the cockpit for a firsthand look. Norman so, if you put that over your face. Martin that blindfold is to make sure i can see only what cameras located in different parts of the plane project onto the visor. Sot norman youre looking through the eyeballs of the airplane right now. And you can even look down below the airplane. So youre looking actually through the structure of the airplane right now. Martin weve positioned 60 minutes cameraman tom rapier underneath the plane so we can test the system. So now i look, and theres tom rapier and hes giving me one finger up. Norman youre the only person in the world that can see him with that imagery right now. Martin were not allowed to show you whats on the visor, because much of it is still classified. But wherever i turn my head, i can see whats out there. Bogdan so theres a lot riding on that helmet, david, theres no doubt. Martin how much does it cost . Bogdan the helmet itself, plus the Computer System that is used to make the helmet work, is more than a halfmillion dollars. Martin but there have been problems with the helmet, and when we visited the marine corps station in yuma, arizona, a malfunction caused a scheduled flight to be scrubbed. In fact, on any given day, more than half the f35s on the flight line are liable to be down for maintenance or repairs. Bugs and glitches in the plane first reveal themselves in testing at Edwards Air Force base in california, where every test flight is monitored and recorded as if it were a space flight. The plane has to go through 56,000 separate tests, everything from making sure a bomb will fall out of the bomb bay to seeing what happens when it is dropped at supersonic speeds. Rod cregier of course, you never like to lose an aircraft. Martin colonel rod cregier runs the test program. Cregier youre taking an aircraft thats unknown, and youre trying to determine does it do what we paid the contractor to make it do. Does it go to the altitudes, the air speeds . Can it drop the right weapons . Were trying to get all that stuff done before we release it for the war fighter, so that they can actually use it in combat. Martin so, are you basically the guy who has to deliver the bad news about the plane . Cregier sometimes, its hard to tell folks that their baby is ugly, but you have to do it because, if you dont get it done, who else is going to do it . Martin a number of surprisingly basic defects have been uncovered. The f35 was restricted from flying at night because the wingtip lights, shaped to preserve the planes stealth contours, did not meet faa standards. Bogdan when you hear Something Like that, you just kind of want to hit yo head like this and go, multibillion dollar airplane . Wing tip lights . Come on martin and then there are the tires, which have to be tough enough to withstand a conventional landing and bouncy enough to handle a vertical landing. We found out that the tires were wearing out two, three, four times faster than expected. Tires. Bogdan tires arent rocket science. We ought to be able to figure out how to do tires on a multi billiondollar highly advanced fighter. Martin Lieutenant General schmidle remembers the day one of the planes delivered to the marines had gaps in its stealth coating. Schmidle they sent me the pictures within half an hour of the thing landing, and i then sent them on to Lockheed Martin and said, so, talk to me. Martin i got a feeling you said more than just talk to me. Schmidle um. laughs the hell . Did you say, what schmidle you know marines tend to be relatively direct in the way that we try to help people understand what our. What our particular concerns are. Martin executives at Lockheed Martin declined our request for an interview, and instead sent us this email saying, in part we recognize the program has had developmental and cost challenges, and we are working with our customers, partners and suppliers to address these challenges. That stealth coating was repaired and the problem with the running lights fixed. But, so far, not the tires. With about 35 planes a year coming off the Lockheed Martin Assembly Line, it seems awfully late to be discovering such basic flaws. Thats because, early in the program, the pentagon counted computer modeling and simulators to take the place of Old Fashioned flight testing. Frank kendall an old adage in the. In this business is, you should fly before you buy. Make sure the degn is stable and things work before you actually go into production. Martin Frank Kendall is the under secretary of defense for acquisition, the pentagons chief weapons buyer. Kendall we started buying airplanes a good year before we started flight tests. Martin so you buy before you fly . Kendall in that case, yes. Martin just saying, it doesnt sound like a good idea. Kendall i referred to that decision as acquisition malpractice. Martin this may 2010 pentagon memo detailed the flawed assumptions, unrealistic estimates, and a general reluctance to accept unfavorable information that put the program seven years behind schedule and more than 160 billion over budget. To stop the bleeding, kendall pumped an extra 4. 6 billion into flight testing and froze production. Kendall we need to face the truth in this business. We need to understand what works and what doesnt. Martin is this f35 program now under control . Kendall yes, it is. Martin shortly after he spoke with us, kendall issued this memo, stating progress is sufficient to increase production next year. But, he warned, the planes software is behind schedule and reliability is not growing at an acceptable rate. Still, the pentagon plans to buy as many as 100 f35s a year by 2018. Has the f35 program passed the point of no return . Bogdan i dont see any scenario where were walking back away from this program. Martin so the american taxpayer is going to buy this airplane . Bogdan i would tell you were going to buy a lot of these airplanes. Could this flying computer be hacked . Go ask alice shes the Digital Brain of the f35 on 60minutesovertime. Com. Sponsored by pfizer. [ male announcer ] its simplyse phics. A body at rest tend ss totay at rest. While a body in motion tends to stay in motion. Staying ac ctivean actually ease artishrit symptoms. But if you have arthritis, stayacing tive can be difficult. Prescription celebrex can help relieve arthritis pain so your body can stay in motion. Because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. Plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. Celebrex can be taken with or without food. And its not a narcotic. You and your doctor should balance the benefits with the risks. 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Com and ask your doctor about celebrex. For a body in motion. Customizable charts, powerful screening tools, and guaranteed onesecond trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Stahl the oscars are just two weeks from now, and a lot of people think Cate Blanchett has a lock on winning best actress for her leading role in woody allens blue jasmine. Blanchett grew up in australia, where she started her career in the theater. Shes a movie star who does shakespeare. Shes first and foremost a theater actor, winning wild praise for her hedda gabler and blanche dubois on the stage. This doesnt mean she cant take a joke, or a fun role in blockbusters like indiana jones. It seems she can do it all, playing americans, russians, germans, skinheads, albinos, and men vanity fair called her a character actress in a leading womans body. So, youve played the queen of england, youve played an elf, you played an italian immigrant. Cate blanchett albino. Stahl albino. Blanchett and thats just before breakfast this morning. laughs i have pink eyes. Like a putano, huh . Like the devil, eh . Stahl the range is extraordinary. Blanchett i guess ive got one of those faces thats not particularly beautiful, not too ugly, you know. I can look. Stahl come on. Blanchett . A bit masculine, i can look a bit feminine, depending on how youre lit, how youre shot. I dont mind not looking conventionally, you know, attractive, if thats what the part requires. Stahl so she can be gorgeous and regal as the elf queen in lord of the rings; not so much when she played bob dylan. Blanchett you just want me to say what you want me to say. I dont feel like, now, im a great actress. I never feel that. You always think, okay, ive learned that. Well, now what if i did that . Golly stahl they call her a chameleon, the way she almost molts into her characters, as when she played Katharine Hepburn in the aviator, for which she won an oscar for best supporting actress. Blanchett youre not extending enough on your follow through. Followthrough is everything in golf, just like life. laughs dont you find . Stahl she spent weeks with a voice coach perfecting hepburns distinctive accent. Can you speak Katharine Hepburn . Blanchett no, i cant do anything. Im terrible. Im the Worst Dinner Party guest in the world. People say, oh, do. Do your scottish, and ill go, okee, ill do me. I sound like im a cross between sort of from new delhi and boston. laughs its terrible. Stahl in blue jasmine, she plays a desperate park avenue socialite who loses her life of status and luxury when her husband turns out to be a swindler like bernie madoff. Blanchett uh, i was forced to take a job selling shoes on madison avenue. So humiliating. Friends id had at dinner parties at our apartment came in and i waited on them. I mean, do you have any idea what thats like . She was monumentally deluded. And like a lot of us, i mean, we. Our lives are built on a fictionalized sense of self, who we would. Who we aspire to be, rather than perhaps who we actually are. Stahl you do a lot of research. Youre known for reading, watching videos, getting. Blanchett its enjoyable. Its enjoyable. Stahl is it true that you watched the 60 minutes morley safer interview of ruth madoff . Ruth madoff if i could change things, at least if i had tried, i would have felt a little better. Stahl . Bernie madoffs wife . Blanchett yes, absolutely. Stahl did that help you . Did it . Blanchett it did. I think that what i really got from them, that madoff interview, was the sense of shame. And i found that very useful. Stahl one critic called it the most complicated and demanding performance of her movie career. Blanchett you know, someday, when you come into great wealth, you must remember to be generous. Stahl but for blanchett, woody allens notoriously minimal direction was unnerving. You really love to talk things out. And as i understand it, thats not his style. Blanchett laughs no. Hes monosyllabic at best. I dont know how to do this thing unless its in conversation with somebody else. I cant. Monologue is. Terrifies me. laughs stahl but thats what you got. Blanchett first day, he said, its awful. Youre awful. Stahl to you . Blanchett yeah. Stahl he said awful . Blanchett its awful. Stahl but he didnt say what to do . He just said, its awful . Blanchett no. No. Stahl so then, you did it again. Blanchett and it was still awful. But. Stahl it was still awful . Blanchett well, obviously, it got a bit better because it didnt. You know, people have gone to see it. Stahl her breakthrough role came in 1998 as the queen of england in elizabeth. Blanchett i am married to england. Stahl after that performance, she was offered other big parts, but went for characters who stretched her, rather than ones that would make her famous. Even though shes often on the red carpet these days, blanchett never sought to be a movie star, nor did she think shed ever be one. Shes the middle child of a School Teacher mother and transplanted texan father, who died when she was ten. She dropped out of college to study theater. What she wanted was to be was a great stage actress, and got her first major role in a play here at the Sydney Theater Company. Blanchett theres a photo over here. Stahl in 1993, she co starred with fellow aussie Geoffrey Rush in david mamets oleanna. Look how into it you are. You are so inside. Blanchett it was one of those plays. You can look at yourself and you can see those things that i see. And you can find revulsion equal to my own. Good day stahl you were a triumph in it. People were dazzled. Blanchett yeah, the director actually almost sacked me. And that was probably a big motivator for me to. To do a better job. Stahl are you one of those people. Are you one of those people that. Blanchett likes to be terrified . Stahl likes to be terrified . Blanchett i think its the only way to work for me. Stahl it motivates you . Blanchett yeah. Im much better with truth. Stahl even if it hurts . Blanchett even if it hurts. Stahl well, i think youve talked about the whole process as the trapeze effect. Youre flying up there, and you could fall. Blanchett yes. Stahl its fear. Blanchett when youre stretching yourself, as a role like blue jasmine did for me, you risk falling flat on your face. Stahl she applies that same risktaking to her personal life, as when she and andrew upton, a playwright and director, decided to get married on a whim. They were both part of the sydney theater crowd. How did you meet . How did the sparks start . Andrew upton the sparks started slowly, i think, personally. Blanchett we didnt like each other. Upton we didnt get on at all at first sight. Stahl really . Blanchett and then, all of a sudden, we played poker. Poker one night, and you were telling me about how you were in love with a friend of mine, and then. We kissed. Stahl and all of a sudden, youre asking her to marry you, real fast, as i undetand it. Upton i think it was about 21 days. Stahl and you said yes right away . Three weeks . Blanchett yeah. But you leap off at the same time. And i think its all about timing. Stahl she says their marriage is a partnership in the raising of their three sons, ages five, nine, and 12 and in their careers. Upton has been her collaborator and sounding board. And theye ofreheir country. Shes australian through and through, downtoearth, and happy to be 18 time zones away from hollywood. Blanchett i adore australia. I mean, i live and work here. And im buoyed up by it. Im inspired by it. Stahl as she took us for a walk along the sydney coast, she talked about her private life. Except for her husband, the only member of the family wed be allowed to film would be the dog, fletcher. Her home and her children were off limits. In the late 90s, she and upton moved to england, and her movie career took off. But in 2006, the Sydney Theater Company invited them to come back and take over as co artistic directors, and they jumped at it. Blanchett it was one of the quickest decisions i think we made, once the offer had come our way, apart from how quickly we got married. laughter maybe in the same spirit, strangely. Upton yeah, i think it was in the same spirit of adventure. Stahl its a job they shared for six years. It kept cate in sydn, ng her to spend more time with their children, and to return to her first love, theater. So this is wardrobe. While she acted in some of the productions, she also became an administrator, overseeing things like wardrobe and props. She and upton hired big name directors, and brought the Company International acclaim with ambitious productions like streetcar named desire, which they took to new york in 2009, with cate as blanche dubois. It is so intense. It was so intense. How long does it take you to come down from an experience on the stage like that . Blanchett at the time, you just. You do eight shows a week, my hair was falling out by the end, and i mean. Stahl your. Is that true . Blanchett yeah. It was not. Stahl your hair was falling out, because you put so much into it. Blanchett but i think i was just so exhausted by. By it. Stahl shes known for being low maintenance, her dramas strictly onscreen or on stage. When we met her before a performance of uncle vanya, she was doing her own makeup. Your life should not be to grumble and moan. Stahl well, whats she like after a performance . Does she stay in the role . Upton no. Stahl she comes home, and shes still blanche dubois that night. Blanchett dont answer that, andrew. laughter stahl she comes home and shes cate. . Upton yeah. Stahl after these emotional, powerful. Upton yeah. Quite calm and chirpy. Stahl she says shes not a method actor who mines her inner self to unlock a character. Blanchett it has nothing to do with me and the fact that my dog died or my father died with my. When i was ten, and making the grief small and personal and inward. And so therefore you dont carry it home, because youre not going through some personal, inward selfanalysis every night that could eat you away. Youre giving it away to the audience and hopefully, if it works, then, its their. They have. Its their problem. Stahl they take it in. Well, yeah. Blanchett they can take it home. Stahl in december, cate decided to leave the Sydney Theater Company and a job she loved. What went into that decision . Blanchett the children. You could feel their school needs beginning to grow. They actually need that attention and, at a certain point, you have to make a decision about that, and thats not something we want to outsource. Stahl now, her decisions about what roles to take in movies include how long shed have to be away from home or whether she can take the boys with her on location, as she did with blue jasmine, her comeback to the movies, which she has done with a roar. Youre 44 years old. Blanchett am i . We dont need to discuss that. Stahl yeah, you are. Blanchett we dont need to rub that in. Lets not. Stahl im not rubbing it in. I think its great to be 44, frankly. But it can be a tough age for an actress. At least, thats the myth, i guess. Because for you, its been a fabulous age. Blanchett well, i came to the film industry, i mean, in actress years, i was pushing 80, because i was in my mid20s when i made my first film. Stahl now, her movie career is so hot, shes already signed up for seven films. Shes booked solid through at least 2015. What is the hardest part of your job . The thing you struggle with the most . Blanchett oh, look. Is it hard . I dont know that its hard. Im an actress. I think the most complicated thing its the military maneuver of getting two careers, three children, but thats a working mothers problem, working parents problem, thats not the challenge of work. I think, in relation to the work, the trickiest thing is beginning. I think its quite a tricky neurolinguistic process actually to try and make something that another. That a character has said, to make it come out through your body and make it seem like thats natural. Its kind of tricking yourself; the confidence trick. Like an athlete does, you have to just say im just going to start. Im ready. Im open. Lets go. [ park sounds, sound of spray paint ] we asked people a question, how much money do you think youll need when you retire . 500,000. Maybe halfmillion. Say a million dollars. [ dan ] then we gave each person a ribbon to show how many years that amount might last. I was trying to like pull it a little further. You know, i was trying to stretch it a little bit more. [ woman ] got me to 70 years old. Im going to have to rethink this thing. [ man ] i looked around at everybody else and i was like, are you kidding me . [ dan ] its just human nature to focus on the here and now. So its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. Kroft now, an update on a story we first reported a year ago called the cost of admission. Doctors at the nations fourth largest forprofit hospital chain, Health Management associates, told us hma pressured them to admit emergency room patients to the companys hospitals regardless of medical need, even setting quotas. My department chief said we will admit 20 of our patients or somebodys going to get fired. Kroft the u. S. Department of justice has now joined eight whistleblower lawsuits against hma, targeting unnecessary hospital admissions and medicare fraud. It singled out hmas former chief executive, gary newsome, for being behind the scheme. Newsome retired last summer and now runs a Mormon Mission in uruguay. Im steve kroft. Well be back next week with another edition of 60 minutes. [ male announcer ] the allnew Toyota Highlander has every amenity. Booooriiiing ah, ah, ah. Hit it, guys its got a bin for your chickens a computer from the future and some giant freaky room for eight