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clinton meeting with egypt's newly elected president and pledging u.s. support for the return of civilian leadership there. muhammad morsi won that seat two weeks ago, but there's still no cabinet or parliament. two weeks before the start of the olympics, the company providing security guards said it's failed to recruit enough staff and could lose as much as $77 million for not covering the contract. the government has to deploy an additional 3,500 personnel. the u.s. olympic committee said it's too late to change the uniforms the athletes will wear. the uniforms are manufactured...

>> i just spoke to the head of security in sinai and he is very positive the situation will be resolved shortly. i also spoke to the kidnappers a couple hours ago and they confirmed that the hostages are saved. unhard. >> we'll have full details on that when we go live to cairo in a few minutes. also in egypt, secretary of state hillary clinton meeting with the country's newly elected president mohammed morsi. egypt is nowhere near settled politically. there is no cabinet, no parliament and the new president is at odds with military office here's controlled egypt after hosni mubarak ...

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as we await jim acosta's interview with mitt romney, there are important new developments in a search for a running mate. we're seeing reports that there is now a short list of possibilities and the biggest name on that so-called short list is the former secretary of state, condoleezza rice. let's bring in dana bash. she's working the story for us. the name has been floated out there for a while. but all of a sudden it's getting a bit more imptous. >> interesting you used the term floated. there's no question this is a trial balloon and a clever way for the romney campaign to chang...

good evening. i'm tom foreman filling in for erin burnett. "outfront" tonight, fiddling in washington while bankruptcy burns across the nation. san bernardino, california, is the latest american town unable to pay its bills. the math is $46 million in debt. they've made drastic cuts in employees and services. and the city has only $150,000 in the bank. that's it. residents are coming unhinged saying, why wasn't this calamity headed off at the pass? >> what about two years ago when they took $10 million from the employees? what were they doing then? now the city is forced basically to...