Transcripts For CNNW Erin Burnett OutFront 20111008 : vimars

CNNW Erin Burnett OutFront October 8, 2011



>> hello, i'm aarerin brurn et. 200,000 people signed a petition ruling against bank of america for the new debit card fee. $5. we've been saying all weeks that the fees banks are putting on people are showing how tone deaf they are at a very bad time. the person who led the petition is 22-year-old molly catchpole. she out front tonight. she is in washington and came to talk us to. we really appreciate you coming in. >> i appreciate it. >> so you and i were talking before. you said you set up this petition just a week ago. >> one week ago. >> and what made you decide to do it? what made you say i've had enough? >> well, i'm 22 years old. i'm working two part time jobs and i don't have an extra $60 a year to give to bank of america. and i knew that thousands of other americans would feel the same way. >> and so basically they were trying to get you to $5 a month. >> yep. >> and you're someone who you're saying you work two part time jobs out of college. you don't have a huge bank account. >> no. no. >> so -- but did you something, molly that, a lot of people don't do and that is break up with their bank. i don't know anyone that really loves their bank. but you actually -- tell me how you did it? >> yesterday i took all of the signatures -- yesterday i was at 195,000. so we took all of them from change.org. we brought them over to the bank that i usually go to downtown d.c. we presented it to them. we said here is 195,000 signatures and didn't really know what to do with them. and then i said i want to close my bank account. i closed my bank account. i cut up my debit card and credit card. so i'm free. >> and have you decided where you're going to go? >> i think i'll go to a credit union. but i still need to think about it a little bit. look wrg i'm going to go. >> so molly, i know that bank of america hasn't responded. they're not backing down on fees. i want to ask you, because you took the time to think about this and put together this petition. what do you think the bank could do so get someone like you back, to make you feel that they're not taking advantage of you and doing the wrong thing? >> i don't think bank of america could get me back now. the fact that they haven't responded to this petition, it's been a week. they haven't responded to it. i don't respect. that i don't want to go with a bank that won't acknowledge hundreds of thousands of angry and upset customers. >> certainly aggressive tax. all right. molly, thank you so much. we really appreciate you coming up and taking the time and telling us all about it. again, your petition is at change.org. give everyone the exact number of people you had when you walked on the set, 204,931 people signed your petition. >> thank you. >> that's the way to take charge and make a difference. >> thank you so much. >> thank you, molly. here's the bottom line. the reason the banks say they're doing it is because new rules took effect a week ago which cap how much money they can charge when you use a debit or credit card. so they're upping fees on checking accounts and debit cards to get back to even and way beyond. and that's the problem. we went through all the numbers. and there are a lot that analysts are crunching. only 45% of noninterest checking accounts are free now compared to 76% just two years ago. here's the thing. banks have been upping fees long before the new regulations that they blame now. average atm fees are at a record. they have risen for each of the past seven years. so now to bank of america. as we told you this week, the investment firm credit suisse says if bank of america charged a $5 fee like it is doing to molly or did until she left them on all the debit cards, it could make more than it did before the regulations and that is just debit cards. it doesn't count the checking fees which they're testing at $9 for some accounts starting soon. bank of america sent us a statement that reads in part, everything we do with our customers is to be clear and to give them a choice. that's what the recent debit card decision is as well. you can see the full statement on our website and facebook page as well. alley bell ali belshy joins us now. can you explain why this is happening now? they're blaming the regulation. >> yes, they are. and that's true. one of the things the recent round of regulations did was minimize the fee that banks can charge to retailers. so if you're a shopkeeper, you get charged for processing a debit or a credit card transacti transaction. they're cutting that in half. so what b of a is saying is they have to make that up somewhere. so this is where they're making it up with a very big naub umbe that is very round and very obvious. the thing about bank fees, usually they're hidden. this is very obvious. what is more is debit cards are actually pretty cheap for banks to process. they're a lot cheaper than checks used to be in the old days. >> it's amazing how much cheaper they are. before the regulation, as leigh was saying, there were fees whether going to retailers and some going to the consumer. now they're disclosing how much they're charging. when you look at the math, they're making more now than they were before. >> sure. yeah, look, as the ceo of bank of america said, he said they have a right to make a profit. i don't know if this is about rights. companies do exist to make profits. they also make the profits when they're good to customers. so i think what molly is doing is fantastic. we're at an age, erin, where the bank puts out a statement that says it's all about transparency. they should have always been about transparency. the cost of that transaction is less than a third of the reduced fee that they're actually getting. so molly's right. you said 45% of accounts don't have fees. there are fees out there. she's going to a credit union. that's what americans should do. between this petition and, you know, voting with their wallets and saying let me go somewhere where there are not fees. that's the only impact you can have. >> that's the most amazing thing that molly did. most people don't like their bank. just like they don't like the airline. but they don't go breaking up with their bank. it's a very sticky relationship. >> it's very sticky. here's a great example. a couple weeks ago netflix raised prices. it caused a firestorm. 6 h 600,000 customers walked away. >> including me. >> including ali. what more do you have to say? so that's a great example of consumers walking away. you're right. they don't do that with their banks. one of the reasons is because over the years banks have put their tenic wills into every aspect of our lives. sometimes you might have a mortgage with the same bank. you also probably link 18 different accounts, maybe including your netflix accounts to the debit card. so it's a lot harder. but this will be interesting. this is a big fee. if there's ever been a fee that will make people walk away, this is it. so it will be interesting to see if it has any impact. >> what do you think? $5 debit card fee like monthly sli talking b but there are some that sound even more like gouging, $5 atm fees if you use a nonbank atm, $9 checking fees and we should note, these are on the low balance people who can least afford it. >> that's right. so one thing that has happened in the same time that banks have been raising fees is there are more nonbank alternatives and more low fee alternatives out there. people do have the choices. it's just not convenient. we'll just have become better consumers. the number of people in this petition though is very, very telling. there's a lot of frustration out there. i think bank of america needs a little bit more of a response than they've given already. >> that seems to be very clear. we should emphasize we called them. we got that statement. but they would give us no, not even a spokesperson to come on and talk about this. it seems they should. thank you very much ali and leigh and molly who is still hanging out over there on the corner. >> erin? have her go downtown to those folks that occupy wall street and get them to sign it. she's actually making a difference. they should get behind. >> yes, she is. >> the two of them could make bank of america change something. >> thank you. a pastor introduces rick perry at an event and called mormonism a cult. i thought we got beyond. that we'll talk about what it means for the republicans today. and italian prime minister berl xoeny suggests a seriously ib appropriate name for his party. we will not disappoint you with this. and we'll introduce you to why on this show we will never resist camels. 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(phone ringing) chase sapphire preferred, this is julie in springfield. the number tonight, 226,000, that's how many one litre glasses that revellers were trying to take over at this year's oktoberfest in munich, germany. according to the german magazine, the lost item stats this is always great. you can see it here. 390 cell phones, 1300 items of clothing, 1,000 id cards, 370 eyeglasses and electric wheelchair. what? and a live eight centimeter grasshopper and one pair of dentures which is down from previous years. all right. exclusive comments today from the past who who introduced rick perry in washington, d.c. i don't want to just tell you about it. we want you to hear it. dr. robert jeffress talked to cnn's jim acosta a few hours ago. >> you said in strong language what you think mormonism. you described it as a cult. and you said that if republican votes for mitt romney they're giving some credibility to a cult. do you stand by that comment? >> absolutely. and that's not some fanatical comment. that is the story of the southern baptist convention which is the largest protestant denomination in the world has officially label morm onism as a cult. >> so dofrn yogovernor perry's statement. he said he didn't believe more thannonism as a cult and he didn't choose the person to introduce him. joining us is a a cnn contributor from washington and mary matalin in new orleans. mary, how does something like this still happen? >> well, welcome, erin. we love the show. we love you at cnn. >> thank you. i'm thrilled to be here. and thrilled to have you on. >> well, we lover it. how does it happen? well, what would be an important event is if rick perry or for that matter even tony perkins clu colluded or agreed with that statement. evangelicals are saying they have the same concerns, the same priorities, jobs and the economy. we have 32 months of ungrowth, no growth. and that's what they're going to be voting on. this is a skirmish. but it's not dispositive in any way in the primary certainly for the perry campaign. >> paul, would you agree with mary on that, especially when you get to the primaries in the south, just a nonissue? >> no. i wish i -- i wish you were right. i think mary is putting hope over reality. i think the only prejudice that the poll has seen go up. george romney, governor of michigan. had been an auto company ceo before that. he ran for president in 1968 and his mormon faith was never even raised as an issue. tragically in america, it's the one declared prejudice that some people seem more comfortable giving voice to. it's sad. it is not rick perry's fault. i don't believe he put this pastor up to it. pastor is responsible for his comments. i don't believe in holding politicians accountable for everything their supporters say and yet perry is missing an opportunity here. when i worked with bill clinton, sisser is sole gentleman, an artist, gave a comment during riots in los angeles which she said black people kill each other all the time. maybe we should have a week where we kill white people. bill clinton went to the rainbow coalition and he called her out. he said it was wrong. and rick perry needs to show that kind of strength. it is essential when you see prejudice in your own movement to call it out. and to say that it's wrong. i don't -- i'm not saying rick perry is a prejudice man. but i am saying he is a weak leader. he's not showing the strength he needs to show. he should label this prejudice as what it is. >> do you think he should have used stronger words to distance himself from it? >> erin, i know you probably already know this about paul, but he would like nothing for us to have a distracting conversation. rick perry does not think what was said, tony perkins doesn't think morm onism is a cult. there is no issue greater for any american, republican or democrats or independent than jobs in r and the economy. and if you think there is no prejudice against any religions, he well knows because we share faith, catholics are still lamented in many quarters. so it's a side show. it's not going to be part of this election cycle. and i disagree tactically and strategically that perry needs to do any more than what he did. he needs to stay on his message. get back to his message. i'm a good jobs creator. i'm a leader. >> well, let me move on to our next -- the person i haven't mention who had is doing so well. obviously i'm talking about with t"the washington post" called te he hermanator. when you look at new hampshire, the poll just released in the past hour has cain in second place. he is up ten points from the last poll. mary, is cain the real deal? >> yes, he is for a number of reasons. people really -- the more they hear the 999 economic plan, they like the specificity. they like the philosophy under it. they like his happy warrior posture. so he is real. but i know paul will agree with this. it's better to be the outliar who shows and then ties and in some polls is leading. that's the preferred position. when you come in as a front-runner, you're in the pinata position. a couple weeks at that position takes anybody -- i don't know anybody that hasn't gone down a couple of notches. i think in the next debate, mr. cain who has been a terrific candidate and a good articulator of the conservative message is going to be in the pinata position. >> that is noes always a good place to be. but paul, let me ask you though from the president's perspective. at this point, who is he hoping is his adversary when push comes do shove? of the three frontrunners, i guess it could be somebody else rvelgs but w but who does he not want to run against? >> the carter white house famously apparently and wolf blitzer confirmed this they sat around and said we want reagan. we want reagan. they got reagan, didn't they? so i think it's not my natural profile here. but i'm very humble about this. i think with the economy in the dumps wshgts republicans frankly i think trying to hurt the economy in order to help themselves politically, anybody who runs against the president is going to give him a very, very tough race. i don't think democrats should sit around sort of hoping it's mr. cain or congressman bachmann or governor perry or mitt romney. i can't pick. to me, all of them want essentially end medicare and privatise or abolish social security and none of them are my cup of tea. i don't want to pick a favorite. >> well, it was fun to you have both together. i like getting a share of the sparks. thanks to paul and mary. have a great weekend. >> you, too, erin. say for the first time we heard conrad morey's voice. the prosecution played an audio tape of the first police interview with where the doctor spoke of jackson's propofol use. >> you administrated more than ten times? >> yes. >> more than 20 times? >> 30 days a month. >> roughly? >> every day. >> so daily. >> daily. with the exception of three days leading up to his death. >> ted rollins is outside the court. ted, so what did you take away from hearing the tape? >> well, erin, it was riveting. and everybody was listening intently here. basically murray takes you through what was going through his mind. he takes you through all the medication that's he gave jackson. what you take away from it though, there was no mention of the telephone calls to his girlfriends and to his office. and he's off by an hour on the time line. when you look at the phone records, it could be trouble for him and his defense. because it just doesn't add up. the timing. and there's no mention in his side of the story of getting on the telephone at all. >> and i know that his defense attorneys are trying to prove that it was another sedative responsible for michael jackson's death, not the propofol. it seems to debufrpg thank thatt it? >> not necessarily. what we heard today kind of goes along with that. in that he gave the new drug that the defense wants to bring into question. they'll have their own expert they bring on next week and they'll be able to make or break their case. >> so does it seem that when you already have this audio tape happening, ted, from what you thought of a few days ago, things are moving pretty quickly. whether do you think the defense will start? >> absolutely things are moving very quickly. we expect the prosecution to wrap up their case early next week. there is no court on monday. and then we expect the defense to get the case next week and defense attorneys claim they going to go a week or two. tip ukly it is sh rufrpg dune to two or three days. there is a chance that both sides could finish by the end of next week. >> great. have a great weekend. the justice department says alabama's tough new immigration law invites discrimination and the fbi joins the search for a missing baby in kansas city. and italy's prime minister berlusconi, seriously. ♪ [ cellphone rings ] cut! 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