break in an old case by using a new method. in the end, it only cost the f.b.i. $50,000 and a bit of macho pride to catch whitey bulger. after spending 16 years in a small fortune in time and manpower searching for the mob boss, the boston f.b.i. hit on a new tactic. instead of focusing on bulger, how about targeting his girlfriend. >> have you seen this woman? >> reporter: the boston f.b.i. convinced headquarters to produce the television commercial detailing the habits of bulger's xap i don't know catherine grieg. the idea was to move beyond wanted posters and target female viewers watching afternoon television or surfing the internet. lead boston agent rick deslauriers who made a career working ount intelligence and chasing spies had to overcome some skepticism, selling the concept to the top brass. >> we were trying to think outside the box on this one, bob be creative and use the power of the worldwide internet and social media. >> reporter: the f.b.i. produced the ad and spent $50,000 to buy airtime in 14 cities-- notably los angeles was not one of the targeted markets. but a tipster who saw news coverage about the ad campaign recognized bulger and grieg as a couple living as charles and carol gasko in this santa monica apartment building. in just a matter of hours, f.b.i. agents in los angeles set up surveillance, positively identified bulger and made the arrest. it was a quick payoff. >> it was money well spent. it was an appropriate utilization of resources and i think that events of the past few days have borne out that that was the correct decision to go forward with this campaign. >> reporter: sources say in busting bulger the f.b.i. did revert to standard law enforcement trickery, luring bulger out of his apartment by apparently telling him someone might have vandalized his storage locker. they then captured grieg inside the apartment where agents also confiscated some 30 guns and $800,000 in cash. some of it hidden in walls. now, the government's trying to seize that money and that led bulger today in court to ask for a public defender. he told the judge he'd pay for his own lawyer if the f.b.i. gives him his money back. >> pelley: bob, bulger was an underworld boss in boston for a long time. what happens if he talks? >> reporter: well, that could get pretty interesting, scott. bulger obviously could solve dozens of crimes, but at the same time he could cause real trouble for law enforcement. in the past, bulger's bragged he corrupted up to six f.b.i. agents and nearly two dozen police officers. now, we have to say it's not at all clear that bulger could prove those allegations but it's also notable that one f.b.i. agent is already in prison for conspiring with the alleged mob boss, scott. >> pelley: thanks, bob. well, imagine how bulger's neighbors in santa monica felt today. we asked bill whit dore go to the neighborhood to see what he could find out about the mobster next door. >> reporter: people in this beautiful seaside city lived beside james "whitey" bulger and his girlfriend for almost 15 years, but most never suspected a thing. barbara gluck lived on their floor and did see flashes of anger. >> we would start to shout and he would sort of scream "stop talking to her!" or "don't talk to me!" and there was a kind of a... what i'd call a rage hall i can response. >> reporter: others will tell you the 81-year-old bulger and 60-year-old catherine grieg lived nondescript lives in a nondescript rent controlled apartment in a neighborhood full of retirees, claire osowswky says they were hiding in plain sight. >> famous notorious guy, criminal, would you think he'd be living in a rent-controlled building? perhaps not, but maybe it's a good strategy. >> reporter: to their neighbors, bulger and grieg were unremarkable, almost unnoticed. but when it comes to public records, they were almost non-existent. there's no public record of an address, no record that anyone ever called to the police to complain about them. no record of a traffic ticket. not even a phone listing. of the two, grieg, who became the focus of the f.b.i. search, was more gregarious, out and about more. >> she was just very lady like, very well-dressed, her hair swept back. she seemed to be a very sweet person. >> reporter: neighbors who recall talking to bulger describe him as a curmudgeon. >> he had a little angry way about him. >> he'd tell me how the people who put dogs in dumpsters should be shot. >> reporter: today those words send chills down her spine, but until their capture it seemed the couple on the run found the perfect place not just to blend in but fade away here by the sea. bill whitaker, cbs news, santa monica. >> pelley: the bulger story got us talking in the newsroom today about the ten most-wanted list. so we did a little investigating. the f.b.i. tells us that it started the list in 1950 after a reporter asked the bureau to name the toughest guys it was pursuing. and of the 494 fugitives who've made the list over all these years, all but 29 have been found. there has been a deadly collision in nevada this afternoon. a gravel truck slammed into amtrak's california zephyr at a crossing east of reno. one of the cars of the train burst into flames. at least two people have been killed, including the truck driver. dozens of passengers have been injured. the train was en route from california to... from chicago to california. in the upper midwest, the waters are rising. the mouse river in minot, north dakota, surged today to a level that broke a record set in 1881. the river is nine feet over flood stage and rising. our minneapolis station wcco is in minot. >> reporter: scott, minot's mayor says more than 2,000 homes are underwater right now and that number is expected to double throughout the weekend. now residents like amy broton can only watch the waters rise. >> everyday i've raised two kids by myself in that house. there won't be a house to go back to anymore. we'll start over. somewhere. >> reporter: amy broto is one of 12,000 evacuees, a quarter of the city's population, who have been forced to abandon their homes, many of which are only roof tops from above. >> a whole lot of water. >> reporter: amy gather what is she can even as her basement fills with water. >> i never envisioned it coming up the walls and being this deep already. >> reporter: she's expecting a baby in four months but could be homeless in hours. she gets strength from this message on her wall. tell me about this, why did you put it on the wall. >> i always said it doesn't matter what you have, i don't need a great big fancy home. you spend a life making a home with your kids and it becomes very important to you. and i've always said it, it's just stuff. easy to say but hard to live by, i think. >> reporter: now, 90% of people in the flood zone are like amy, they don't have any flood insurance and the waters here are expected to rise another five feet throughout this weekend and stay that way, scott for several days. >> pelley: jamie, thanks. the white house said today that the president himself will join the negotiations over raising the nation's bar lowing limit. republicans walked out yesterday in a continuing dispute over tax hikes and spending cuts. the stakes are high. unless an agreement is reached by august the government could default on its debt and that could be catastrophic. bob schieffer, our chief washington correspondent and anchor of "face the nation," joins us now with some insight into all of this. and, bob, you know, time is slipping by. i wonder, are they getting any closer to a deal? >> short answer, no. and i'll spare you the details, but the two sides, scott, are as far apart tonight on reducing the deficit as they were in january when this congress convened. republicans want deep cuts in spending. democrats say there has to be a lot of government tax breaks eliminated and that's the standoff. these thing always go down to the wire. but here is what's different this time. republicans say they won't vote to raise the debt ceiling unless there's a deal on this deficit reduction and that's where we move into very dangerous territory. unless this debt limit is raised so the government can borrow more money it may have to start defaulting, as you said, on its financial obligations this summer. even talk that for the first time in history uncle sam as s a deadbeat who can't pay his bills could send not only our economy but the world economy into a tail spin. yet this partisan sniping continues they're nowhere close to an agreement and the house is now-- you may not believe this-- going off on yet another recess, this time for a week and a half. >> pelley: on vacation. thank you, bob. bob's guest this sunday on "face the nation" is congresswoman michele bachmann of minnesota, the candidate for the republican nomination for president. the actor whose catch phrase was "just one more thing" has died. a prospector is finding fresh glur a place where you'd least expect it. and a seismic shift in benefits for firefighters, cops and teachers. is ate model for the nation? when the "cbs evening news" continues. 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[ male announcer ] so don't blame it on aging. talk to your doctor and go to isitlowt.com to find out more. >> pelley: the governor of new jersey said today what just happened in his state will make it a model for the rest of the country. public employee unions hope not because, as jim axelrod reports, new jersey became the latest state to cut the benefits of government workers. >> reporter: 8,000 xhanting protestors outside new jersey's state capital were not enough to keep benefits from being cut for public employee union members. new jersey is facing a crisis. the state's pension and health plans are underfunded by $110 billion. so with this new law, public employees will contribute several thousand dollars more for their benefits. new jersey's republican governor chris christie, is claiming a major victory that will become a national model for other struggling states. >> this reform bill will save $132 billion over the next 30 years for the taxpayers of new jersey and will put finally on firm footing the pension systems. >> reporter: but the law would never have passed without the help of an unlikely ally. >> we got into this pension mess because some labor leaders simply failed to be honest with their members. (boos) >> reporter: new jersey's senate president steve sweeney is not just a democrat, he's an official with the iron workers union. >> so what are you doing being the guy who's asking public employees to pay more for their health insurance and their pensions? >> i'm the guy that sits on the same sides side of the table as they do and i know what fair is and someone has to step up and say with credibility and credentials and say wait a minute, this is wrong. and we have to fix it. >> reporter: an underfunded state pension isn't just new jersey's problem. according to the most recent calculations, the gap between promises states made to public workers for pensions and the amount set aside to pay for them is at least $1.26 trillion. new jersey joined states including wisconsin, ohio, and michigan asking public employees to kick in more. it's an assault on collective bargaining, says labor studies professor tom juravich. >> you take health care out of collective bargaining what's the stop you from taking income out of collective bargaining? >> reporter: governor christie says this law also represents a victory for bipartisanship, one the governor says washington could learn from. jim axelrod, cbs news, trenton, new jersey. >> pelley: we got word today that actor peter faulk has died at his home in beverly hills after a battle with alzehimer's disease. >> didn't give you any trouble, did he? >> pelley: faulk earned oscar nominations for "murder, incorporated" and "pocket full of miracles" and four emmy awards for his portrayal of lieutenant columbo whose disheveled appearance belied his skill at cracking cases after asking a suspect... >> just one more thing. >> pelley: and just one more thing about peter faulk, he was a talented artist. his work includes a self-portrait in that rumpled raincoat. peter faulk was 83. and we'll be right back. 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