good morning. welcome. it's thursday morning, may 19th. we have a lot of news this morning including some breaking news. let's begin with that breaking news. the resignation of dominique strauss-kahn as head of the international monetary fund. this move comes just before a bail hearing today in new york. we're seeing this mug shot for first time. the former imf chief is facing sexual assault charges for allegedly attacking a maid in his manhattan hotel room. he says he is not guilty. resigning from the imf so he can defend himself fully. >> here is part of a statement he released. quote, i think at this time first of my wife, whom i love more than anything, of my children, of my family of my friends. i want to say that i deny with the greatest possible firmness all of the allegations that have been made against me. i want to protect this institution, which i have served with honor and devotion, and especially i want to devote all of my strength, all of my time and all of my energy to proving my innocence. >> susan candiotti is covering this case for us. a pretty strategic move by the strauss-kahn defense on the eve of his bail hearing. that's going to be today. >> reporter: absolutely. certainly it's no coincidence that he's making this statement today, this resignation, on the eve of when he's going to be asking the judge to let him out of jail. a judge gets to figure it out. are the conditions figured good enough to make sure he shows up in court. dominique strauss-kahn wants out of rikers where he's been two nights under a suicide watch protectively. if he makes his case, no more cot, no more cell, no more guards looking in on him every 15 minutes. he'd get to live in a comfortable home, possibly his daughter's in manhattan. his attorneys are proposing $1 million bail, the same amount they offered monday. he'd be confined to home 24 hours a day, 7 days a week be under electronic monitoring and sure to be checking in with the court by phone. he's already turned over his passport and would hand in a united nations travel i.d. the internationally known financier is also offering to put up the deed on his $4 million home in washington, d.c.'s tony georgetown. he also has a home in paris. strauss-kahn will also tell the court he'll waive extradition to the u.s. should he flee to france, which has no treaty to force his return to the u.s. the alleged victim's lawyer says the 32-year-old mother because of all of this is scared to death. >> she's very concerned about her security. she's very concerned about what has happened, what this man is capable of and the fact that he would be free. i'm sure it would be something that she'd be very alarmed about. >> strauss-kahn's lawyers have said that he will plead not guilty and told the court they have a defensible case. strauss-kahn's dna and other forensic evidence collected at the scene of the alleged attack will be considered by a grand jury. the hotel maid, as we know, is also to testify in secret grand jury hearings. >> so you're learning new information now about the cart, the maid's cart and the positioning of that and what was just happening as she was entering the room. what can you tell us? >> per hotel policy, maids are supposed to keep their cleaning cart in the open doorway. a law enforcement source tells us that's what happened in this case. so arguably, the prosecution's case might be helped by that to say, well, let's see, would you have consensual sex, for example, if you had the door wide open? now, the defense could argue it in another fashion, but all of this is yet to be seen. >> susan, thanks very much for that. we'll stay on top of this story. obviously a lot of developments. >> yeah, i mean, he probably didn't have much of a choice, he had to resign from the imf. >> sure. >> even if he's proven innocent, this is a fight he has to tackle for months to come. >> and the imf since the financial crisis has been remarkably busy. >> when the treasury secretary of the united states comes out and says at the harvard club a few nights ago he has to step down, that's a sign that you won't be effective with the imf when fighting charges like this. the national transportation safety board investigating the crash of a military plane in southern california. the tanker jet crashed last night on takeoff at the point mugu air station. the boeing 707 burst into flames at the end of the runway. three crew members on board managed to escape with minor injuries. officials say the plane was being operated by a navy contractor omega air refueling which provides fleet operations on the point mugu sea test range. al qaeda out today with a new audio message said to be recorded by bin laden before his death. the 12-minute tape was posted by raddic am islamic websites. it calls him the martyr of islam. the message refers to the revolutions in tunisia and urges muslims to rise up against corrupt rulers and western influence. also today growing concern at the pentagon that releasing too much information about the raid that killed bin laden could compromise future missions. >> we have, from my perspective, gotten to a point where we are close to jeopardizing this precious capability that we have, and we can't afford to do that. this fight isn't over. >> just yesterday cia director leon panetta sent out a memo reminding agency employees of the importance of protecting classified information. coming up at 6:30, national security analyst peter bergen will stop by to talk to us more about this message believed to be from bin laden and about al qaeda's new leadership and new leader there. >> it will be interesting stuff. peter's been at the forefront of the new information coming out. so it will be examine to talkgo him about it. president obama will be outlining new goals for the middle east in a speech. it will include an economic boost for egypt and tunisia. >> we can expect strong language from him aimed at syria with sanctions for the brutal crackdown on its protesters which we've been following for weeks here. >> let's bring in ed henry live at the white house. why now, and what's the goal of this speech? because it's a complicated narrative why we react in one country one way and in a different country a different way. >> it is. and it's a lot to tackle. they say he wants to tie together the arab spring, all these peaceful protests, the situation in libya, the death of osama bin laden. i mean, that alone is a lot to chew on. you throw in the mideast peace process which has been intractable for so many years and this is very, very ambitious, obviously. two years after that speech the president gave to the muslim world in cairo, egypt. this is now a chance to check in again. and aides say that it is a chance to take a breath, a few months after the arab spring began, and kind of reassess where we are and lay out for the world, not just the muslim world, but the entire world what exactly the u.s. can do specifically to try and help some of these fledgling democracies as they make these transitions, specifically what the president's going to lay out is about $2 billion in u.s. aid to egypt and tunisia to try and get at the root of where all this started which we can't forget about which is the fact that there are a lot of young people in the arab world who are not just interested in human rights but also economic power, and the fact that so many of them coming out of college without jobs. and so the u.s. wants to try and help egypt, tunisia and let them be models for the rest of the region as they try to grow here. but it's interesting when you look back that speech to the muslim world two years ago, the president didn't mention tunisia, didn't mention libya, didn't mention syria. obviously a lot of big countries in that region but gives you a sense of how in two years so much has changed. this is a chance for the president of the united states to maybe take stock, guys. >> thanks, ed. a lot clearly for the president to illustrate for the american people. cnn will carry the president's speech live at 11:30 a.m. eastern. after nearly a decade of controversy over this drug, the fda is taking steps to curb the use of the diabetes medication avandia because of its risks of heart attack. beginning in november avandia will be available only by mail order at select pharmacies and patients must be informed of its risk. studies have found that the drug increases the chance of heart attack or stroke. some are asking why is it still even allowed to be prescribed but there are others who have tried to make the case that for some patients avandia is the most effective at controlling diabetes. speaking of medicine, doctors say congresswoman gabrielle giffords is recovering well. this is another milestone after her surgery. she underwent a procedure to repair part of her skull after being shot in the head as you remember back in january her surgeons are expected to speak later this morning to discuss what is next. she was at the shuttle launch on monday to watch her husband, right there, mark kelly, take that space shuttle "endeavour's" last mission into space. controversial documents about the accused tucson shooter jared loughner are set to be released. the arizona republic is reporting that a judge has ruled that the college that he attended has to turn over 250 e-mails written by him in the months before his suspension. citing a privacy law. six people were killed in the shooting in january. more than a dozen others were wounded. in virginia tech we saw something similar, didn't we, kiran, where we were trying to find out if there was any kind of sign that the shooter in that case -- >> right. >> had run afoul of mental health officials or school hierarchy. >> and he was in and out of the mental health system. and he had written poems that scared his classmate who had gone to talk to them. but there's that minority report aspect, even if you think somebody is troubled and they haven't committed a crime -- >> has not allowed them -- >> and the privacy trumps everything. that's something they've claimed as well. the mississippi river cresting a day earlier than expected at over 57 feet. that's 14 feet above flood stage. and an all-time record. hundreds of homes are now under water. highways are impassable. right now thousands of homes are flooded and millions of acres of farmland in mississippi, tennessee, arkansas are submerged. home video of a tornado that touched down. this is in hagerstown, maryland. the national weather service confirms it was on the ground for just over two miles. it tore up roofs, knocked over trees but amazingly no one was hurt. after capturing the prestigious players championship this weekend, pga tour star k.j. choi is donating $200,000 of his winnings to victims in the southeast. he took home $1.7 million for his playoff victory on sunday. he said he wanted those who are suffering right now to know they are not being ignored. >> he's known for this, for giving a portion of his winnings to local churches, to charities, to causes that move him. >> i mean, that's really cool and generous. cut these out of your everyday life and you'll be a little richer. pretty helpful article up on the new cnn money.com. first atm fees. using the closest one instead of your actual bank which is down the block. you got to walk an extra block or mile for the free atm machine. lotto tickets. the old saying the house always wins. last year people bought more than $70 billion worth of lottery tickets. wow, 70 billion. only 38 billion was paid out. >> but if you win, you really win. >> and number three, fancy gourmet coffee. the sludge from the office machine is probably going to work just fine. >> it depends on the sludge. but if you don't use the atms that charge you, then you can use that money for coffee. >> there you go. i agree. >> or an occasional lotto ticket. >> and while i certainly never think buying lotto tickets is an excellent choice, in these tough times it does fund a lot of state operations. >> people do it -- >> pays for schools. >> in georgia it's their scholarship system. ah, but bottom line take stock of what wrur spending. >> this is our question of the day. what do you waste your money on and why? even if you know you shouldn't do it, why can't we kick this habit? e-mail us, tweet us or go to our blog. we'll read your comments later this hour. >> sounds good. new details about the other woman that broke up arnold schwarzenegger and maria shriver. new pictures the and a new legal move by maria. ♪ [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. you're gonna want mr. fuzzyman even more now that we've discovered beneful playful life. with real, wholesome ingredients like beef, egg, and even oatmeal. extra protein for strong muscles. so you're ready for anything. you think you're getting spoiled. but it's so good for you, too. [ female announcer ] beneful playful life. healthful, flavorful, beneful. dream big. beneful is awarding a $500,000 makeover for one very lucky dog park. ♪ [ woman speaking chinese ] thank you. do you have an english menu? no english. [ speaking chinese ] [ gasps, speaks chinese ] do you guys like dumplings? i love dumplings. working with a partner you can trust is always a good decision. massmutual -- let our financial professionals help you reach your goals. personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. we're going to get our first look at arnold schwarzenegger's other woman. "the new york times" is reporting that her name is mildred patricia baena, a former housekeeper for the schwarzenegger family. these are pictures from her myspace page. she's reportedly the mother of schwarzenegger's secret child. >> we're also getting our first glimpse of schwarzenegger since this scandal broke. in his black bentley and driving up to a wall of paparazzi. thelma gutierrez is live outside the mistress' home in bakersfield, california, with new details this morning. hi, thelma. >> reporter: hi there, kiran. mildred patricia baena who is 50 and a native of guatemala lives here in this brand new subdivision in bakersfield, california. this is a hundred miles away from the brentwood mansion where she worked for the schwarzeneggers. she recently retired after 20 years of service as a housekeeper for the schwarzeneggers and moved here with her 14-year-old son. his birth certificate was recently obtained by cnn shows that the boy was born just days after maria shriver gave birth to her youngest son. and the man who's listed on the birth certificate as the father is the man that baena was married to at the time. but divorce records obtained by cnn show that the couple separated just weeks after the boy's birth. now, we had mentioned that the couple -- that the family resettled here in bakersfield. here's what neighbors had to say. >> they seemed to be very pleasant neighbors. and the boy, he is -- he seems very well liked. he's very, very polite. very polite. he also has a little dog he plays with a lot and he rides his bike. not a whole lot, but you know once in a while i see him. but not a whole lot. >> reporter: now, as for the boy's father arnold schwarzenegger, he has kept a very low profile. a source told us a couple of days ago that he is contrite, that he apologized to his children before this information went public. "people" magazine reporting that maria shriver has hired a divorce attorney. do we know any more about the timeline for when their marriage could be officially dissolved? >> reporter: no, we don't know exactly when that will happen. but the attorney is a high powered attorney in hollywood, kiran. she's laura wasser. again, "people" magazine reported that maria shriver had hired her. now she's represented other women, high profile women like robin gibson who is mel gibson's wife. also angelina jolie and at one time brittany spears. one of the questions we get a lot in these tough times for people of the age that they're ready to retire, should they retire now or do they continue working because of the tough economic times? we'll talk about that when we come back. you don't have to worry about retirement if the end of the world comes first. some say saturday is d-day. jeanne moos takes a look at what could be the end of the world, or not. [ woman ] can't anything help these itchy allergy eyes? [ male announcer ] visine-a is clinically proven to relieve all your worst eye allergy symptoms. it goes right where you need it, relieving allergy eyes in minutes. get visine-a. the most complete allergy eye drop. i know you're worried about making your savings last and having enough income when you retire. that's why i'm here -- to help come up with a plan and get you on the right path. i have more than a thousand fidelity experts working with me so that i can work one-on-one with you. it's your green line. but i'll be there every step of the way. call or come in and talk with us today. welcome back. 24 minutes past the hour right now. thousands of new jersey state workers are getting out i guess you could say while the going's still good. >> they're worried about the future of the state and their pension. they feel they may lose their pensions because of looming state budget cuts. they're running out of time and options. is early retirement what you should do -- early retirement applications are pouring in in new jersey. >> there's certainly a lot of question about this. cnn's looking into this. a very common question. should i take my pension while there is a state pension and a budget or wait? >> there's a lot of fear out there and there's a lot of misconception. this is a problem that resonates with all of us in the workforce. will there be enough money out there when it comes to retiring? that's a question faced by people right now. some government worker feel they're being forced to make some unwanted decisions. >> it scares me. it scares me. i don't know how much money i'm going to get, how long i'm going to get it, but i want to get some of it while it's in there. >> debra jacobs has worked at the new jersey department of motor vehicles for 34 years. in june she's retiring one year ahead of schedule at the age of 54. >> i've really been forced to make a decision. i would stay a little longer, but with the rules they're trying to make, with the laws they're trying to pass, it's scaring me that i may have to be here till i'm like 60. >> jacobses is one of thousands of state employees heading for the exits in many states facing a crisis. in new jersey, it surged 60% in 2010 and are on the rise again this year. in california 30,000 state employees retired in 2010. and in wisconsin, where protests against government benefit cuts made national headlines in february, retirement applications have nearly doubled in just the first four months of this year. economics professor theresa gilarducci says many want out before their pension goes bust. >> it is important for states and localities that have an expensive pension bill right now to reassure employees that they'll get all their pensions. >> there's no sense for anybody to race to leave. if you're vested and in new jersey it's five years, they can't make those changes to you legally. state senate president stephen sweeney is working against the clock to get a road map to save new jersey's pension fund. >> i'm actually working with the governor on a plan that's going to create a more priv