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Three Computer Glitches Bring Down Important U.S. Institutions For Several Hours; Lili Bernard Claims She Was Assaulted By Bill Cosby. Aired 3:30-4p ET

Aired July 8, 2015 - 15:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(COMMERCIAL BREAK)

[15:32:28] BROOKE BALDWIN, CNN ANCHOR: An update here on our breaking news. If you just joining us, just a couple minutes ago, we can officially tell you that trading has resumed at New York Stock Exchange after, let me be precise in my language, internal technical issues sort of stopped the whole system for multiple hours today, not the result of a cyber-breach. That was just one of three major entities affected today by glitches.

You also had the "Wall Street Journal's" home page. That went dark for a period of time earlier today and then this morning United Airlines grounded flights worldwide because of a glitch there as well in the online reservation system.

So, joining me now is CNN law enforcement analyst and former FBI assistant director Tom Fuentes.

And Tom, first to you, just with your spidy sense and knowledge. I mean, three -- "Wall Street Journal," New York stock exchange and United Airlines, all happening in one day. Coincidence, is that what this was? That's it?

TOM FUENTES, CNN LAW ENFORCEMENT ANALYST: Very suspicious, Brooke. But as they looked into it so far it appears to be coincidence. But I should add on these kinds of incidents, the FBI's cyber division immediately jumps into action any time an element threatens the critical infrastructure of our country. And critical infrastructure includes anything that concerns our power grid, water pumping, communications, aviation, and, of course, our financial markets. So what they have to look at is that market being attacked? Is that computer network under some form of a breach from outside, from a foreign power, from organized crime, from just individual hackers?

So they immediately look at the worst case scenario and then dial it back as they determine that it wasn't that. And that's what's happened in these cases so far is that once these issues were looked at, it was pretty much determined so far to not be the result of an outside attack.

BALDWIN: Right, and just for context for those of you watching that happened in the New York stock exchange, last thing anything in the neighborhood of this was 2013, the flash spree (ph), that was when Nasdaq shares stopped trading for three hours. But I think it underscores the point of the vulnerabilities, right Tom, the vulnerabilities of these online entities.

FUENTES: Right. The concern is that bad actors could test our systems. That one day they might look at the financial markets. Another day they might look at communications or aviation. Another day the power grid with the idea that someday they could put it all together as a prelude to a possible cyber-attack on the entire United States. And the fear has also been in our country for decades that a major attack that shut down all of our major infrastructure could turn the United States into Somalia if were rely completely on our computers for everything. So that's the issue, that if our compute remembers shut down we're as vulnerable as we could possibly be.

[15:35:16] BALDWIN: It is a tad frightening how reliant we all are, isn't it?

FUENTES: Absolutely.

BALDWIN: Tom Fuentes, thank you so much.

FUENTES: You're welcome.

BALDWIN: Coming up next, we will take you back to the floor of the New York stock exchange. Again, trading has resumed after halting for more multiple hours today because of this technical issue. Closing bell 25 minutes away.

Stay with me. You're watching CNN's special live coverage.

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[15:35:00] BALDWIN: Here's an update on our breaking story we're following, really, for the past couple of hours, that the New York stock exchange has now reopened and resumed trading after a major technical malfunction in the late morning. It halted trading for three to four hours today.

I have Alison Kosik who has been standing by there on floor in the midst of the madness, if you will there at the New York stock exchange. Also with me Rona Foroohar, global economic analyst and cyber security expert Rob Sadowski.

So, Alison, let me just take it back to you first as we are looking at the numbers down 235 points, 20 more minutes of trading. What's the sense where you are?

ALISON KOSIK, CNN MONEY BUSINESS CORRESPONDENT: Things have certainly calmed down, Brooke, since the New York stock exchange reopened for business about what, 30 minutes ago I would say. But that opening happening more with a whimper than a bang because a lot of the trades that usually come into the New York stock exchange, those market orders not happening. But some traders say that's a good thing.

Just to give you an idea the volume, the number of trades coming in. Right now 217 million. Usually at this time of the afternoon, that would be triple that number so it would be more like 600 million. But many traders say they just want this to be smooth. They want to get this close without a glitch. Things could ramp up towards the close. Meaning towards 4:00, they got about 20 minutes. So you are seeing traders kind of bracing for that. But at this point they are looking at their screens and kind of happy that they are back in business, Brooke.

BALDWIN: OK, Alison, stay with me, jump back in if you like to in the conversation here.

Rona, let me turn to you. Just first, your assessment looking at the numbers, you were sort of saying, expected?

RONA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Yes, not too bad. You know, when something like this happens you always expect a little bit of a dip when the market reopens. Nobody knows quite what this is going on but these are normal jitters. It's worth saying the market was already jittery before any of this happened, you know. We were talking about China stocks falling.

BALDWIN: I'm looking at you and I was thinking, just 48 hours ago, we had the conversation with Greece. But right --

FOROOHAR: And now we're going back to being worried about what we were already worried about, instead of this.

BALDWIN: OK. So -- will this at all impact anything globally or it's pretty self-sustained?

FOROOHAR: Well, I think that what this does is two things. First of all, everyone looks to the U.S. market for reliability, for dependability, for stability and I think when something like this happens it does sort of rattles investors. People lose confidence. I mean, that happens certainly during the flash crash, you know, when the Nasdaq went down.

This is something that certainly that the markets are going to want to come to grips with. It's a very wobbly time right now. You've got China in a free fall as we were talking about earlier. That is probably going to continue for a while and expecting jitters there for the next week. Europe's debt crisis is going to keep plowing on through Sunday. So I think we're in for several days of jitters with or without technical problems.

BALDWIN: OK. So with the jitters, Rob, let me ask you this question because everyone sort of came out pretty quickly. I know the president had been briefed. The FBI called in just to check on it. They weren't needed as much. And even Jeh Johnson, the department of homeland security secretary said and he was talking more about the united issue, that it did -- nothing seemed nefarious.

How will all three of these, WallStreetJournal.com, New York stock exchange and United Airlines, how will they all be able to trace back the glitches and figure out what the heck happened?

ROB SADOWSKI, CYBER SECURITY EXPERT: Right. So I think that, you know, they -- only the insiders, only those companies, Brooke, are going to know. You know, they are going to have forensic evidence. They are going to have the data of what happened on their network. And again, all the preliminary indications are that these weren't a cyber-threat. But I think the interesting part about this is that everyone's mind automatically gravitate towards that. You know, couple of years ago, we might just thought this is a commuter glitch. Now, everyone's mind gravitates to the fact, hey, this could be a cyber-attack. It just shows you, you know, the level of risk that is out there, the concern that is out there for some of these critical infrastructure and some of these critical industries in our economy.

BALDWIN: Staying with you, does this show or underscore, if this can happen on the very same day, overlapping in the same hours three major brands, the vulnerability of our systems to something more nefarious, or is that totally separate?

SADOWSKI: No. I think that -- again, there is certainly a heightened sense of risk. As more and more of these industries, and, you know, your point is very well taken. Across these different industries, they are all so depended on technology and that raises the level of risk for a cyber-attack to disrupt those industries. And we have seen that actors who may target them, criminals who may target them, nation state that may target these industries will use and have use cyber- attacks to go after to prove their point who accomplish their objectives to achieve financial gain.

So this is certainly a risk and certainly an area where companies, really across any sector of critical infrastructure, need to be focusing, need to be improving their defenses, need to be able to detect and respond to cyber threats that may target and seek to disrupt their operations.

[15:45:03] BALDWIN: Alison Kosik, let me bookend this conversation back with you. You know, I was listening to you earlier. And as far - listen, talking about being reliant on computers, we're all a little guilty of this, (INAUDIBLE) massive companies, but specifically, at the New York stock exchange, 82 percent of the trading there is done electronically. I guess, some still subscribed to the old-fashioned trading. But when you're talking to some of these traders, I'm just curious, some of whom have been there for a long, long time and they saw this outage for multiple hours today. Were there nerves rattled at all or no?

KOSIK: I wouldn't say their nerves were rattle. I think there was just a lot of disappointment. I mean, this did not make them happy. This is not good press for the New York stock exchange which prides itself on electronic trading. You know, you think about even just the battle between exchanges. Let's just say the New York stock exchange and the Nasdaq, the battle to get listings, the battle to get the big IPOs, like Twitter that's listed here or Facebook that's listed at the Nasdaq. Remember that the Facebook IPO when Facebook went public and how that technical click at the Nasdaq certainly put a black eye on the Nasdaq. Well, that is the big worry here at least earlier today at a lot of these traders, the sort of embarrassment that comes with the huge glitch like this.

BALDWIN: OK. Fourteen more minutes of this wild and wacky trading day. I'm sure we'll check back with you for the closing bell. Alison Kosik, Rona Faroohar and Rob Sadowski, forgive me, Rob

Sadowski. Thank you all very.

And coming up, a woman who says she was assaulted by Bill Cosby. She shares her story. Her lawsuit was dismissed days ago. She will join me live, next.

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[15:51:10] BALDWIN: Now to more personal voices on this Bill Cosby fallout here. First, the attorney who deposed him in 2005 is now considering filing a motion to get the full deposition unsealed, the very same deposition that revealed Cosby admitted for acquiring Quaaludes with the intention to use with women to have sex with them. That means alleged victims would be identified and all redacted portions would be disclosed.

BALDWIN: Since the Quaalude bomb shell from that now unsealed deposition, two networks have pulled reruns of the comedy legend's TV shows. Disney World has now removed the bust of Bill Cosby from its part in Orlando. And my next guest is likely to agree with all these choices. She says she is was drugged and raped by Bill Cosby in 1992.

Lili Bernard is the former Cosby show actress. She played the character of Mrs. Minifield on the show's final season. She came forward in May. And Lili joins me now with her attorney, Gloria Allred. Allred represents 13 other Coby accusers who spoke (INAUDIBLE) yesterday. And so, I just want to welcome both of you to the show.

UNIDENTIFIED FEMALE: Thank you.

BALDWIN: Thank you. Just so we are crystal clear, Lili, I know that you say you were raped in New Jersey, and New Jersey has no statute of limitations on sexual assault, but -- and at least this is according to Cosby's attorney as of last week, who said your case was dismissed. Have either of you heard from the Atlantic City prosecutor? Is that your understanding of the case or not whatsoever?

GLORIA ALLRED, ATTORNEY REPRESENTING 14 COSBY ACCUSERS: Yes, by the way, when you indicated earlier -- when you indicated earlier that she filed a lawsuit that was dismissed, that's not accurate. She did not ever file a lawsuit. And no lawsuit therefore was dismissed.

As to the Atlantic City prosecutor, she did spend more than five hours talking to detectives there. New Jersey has no statute of limitations, but it's not retroactive. The law was changed in 1996, I believe. It goes back five years. She missed it by a few months, but the reason that the prosecutor is not pursuing it has nothing to do with whether Lili was telling the truth in the five hours. She gave very, very compelling information to the detectives. It has to do with the statute of limitations. And the statute of limitations, those are the three favorite words I think of Bill Cosby. You know, maybe he prays to those words every day, statute of limitations. Maybe he's going to imprint them on his forehead, but all I can tell you is Lili was very brave. We're glad she made a report. We suggest any other woman who alleges she was sexually assaulted by Mr. Cosby go to their local law enforcement or wherever the assault occurred and report it so that it's in the record.

BALDWIN: Lili, I just want to hear your voice. Can you tell me what happened in 1982?

LILI BERNARD, COSBY ACCUSER: Yes. First, I want to respectfully correct you that you stated --

BALDWIN: Both of you ladies, I apologized. I got some wrong information and I'm on the record apologizing to both of you.

BERNARD: It's OK I just wanted to clarify that I never stated he raped me in 1992. I stated he drugged and raped me in the early 1990s, but 1992 he threatened me with words that I perceived to be a death threat. So just to clarify that.

BALDWIN: It wasn't 1992, it is the early 90s. I understand, can you tell me what happened either time?

BERNARD: OK.

Well, first of all, I just want to preface it by says Bill Cosby has admitted to administering drugs with the intent of having sex with young women. And sex is an expression of mutual consent, therefore rape is not sex. Rape is a very violent and highly intrusive criminal act that can cause lifelong and life-threatening damage and trauma in a woman's life as it has in my life, having been a victim of Bill Cosby's drugging and raping me. And we live under a society that functions under principles of equality, respect, and philanthropy.

And in the trademark manner, in the highest form of a coward, Bill Cosby has hidden under this facade, under this public persona that espouses the societal images, the societal morals, excuse me, while he then turned around and committed acts of sexual enslavement upon me, you know, by surreptiously (ph) slipping drugs into my blood that incapacitated me, prevented me from being able to fend for myself to fight off my attacker, which in this case was Bill Cosby. And that is how I perceive it to be (INAUDIBLE).

[15:56:08] BALDWIN: Let me play you some sound from Whoopi Goldberg on "The View" today.

(BEGIN VIDEO CLIP)

WHOOPI GOLDBERG, HOST, THE VIEW: People have been coming after me telling me they're going to snatch my family, they are going to come of this like being Frankenstein, people coming after you with the fire and they are going to burn you. No one here thinks rapists are fine, nobody thinks rape or hates women or any of that. So don't come after me like that because I'm sick of this bull.

Here's the bottom line for me. It's my opinion, and the American courts agree with me, because still he has not been taken to jail or tried on anything. So back off me.

(END VIDEO CLIP) BALDWIN: So Lili, final question to you, 60 seconds, what would you say -- how would you respond to the defenders of Bill Cosby, to Whoopi Goldberg.

BERNARD: Well, I have the utmost respect for Whoopi Goldberg. She's a great comedian, but what I endured with Bill Cosby was no bull by any means. You know, he met with me under the pretense of meeting with producers who would further my career, and he surreptiously (ph), clandestinely slipped drugs into my blood and he raped me. It was a very traumatic. I wasn't even -- I'm a very strong person, you know. I gave birth to six children without any pain relief, and yet with this strength because he incapacitated me, I was not even able to push away the pillow from my face that he was using to silence my screams while he was suffocating me while he was raping me. And then when he finally lifted the pillow and I could gasp for air, I could not even wipe away the tears trickling down the temples that were well in my ears.

And so, this is no bull. This is real. This is what I experienced and it was highly invasive. You know, I fell on a table and cut myself, having been drugged by him, cut myself, and bruised, the table that I fell on bruised and cut me. It was very violent. And if and when I'm called to testify under oath, I will present all the details along with evidence and contact information of third-party witnesses. But it was no bull. It was highly traumatic and it impacted my live very negatively.

BALDWIN: I admire your strength. Lili Bernard, thank you so much. And Gloria Allred, thank you as well.

Thank you very much. Do not miss tonight's Special Report, "No Laughing Matter" inside the Cosby allegations, 9:00 eastern, right here on CNN.

I'm Brooke Baldwin. That does it for me. "The LEAD" with Jake Tapper starts right now.

JAKE TAPPER, CNN HOST, THE LEAD: Costly frightening computer glitches, all of them hitting on the same day.

I'm is it Jake Tapper, this is "the LEAD."

The national lead, computer issues grounding all United Airlines flights, shutting down the New York stock exchange, taking down a national newspaper, coincidence or an attack?

The politics lead, former president Jimmy Carter live one on one. He knows all about being shafted by Iran and about winning the democratic nomination. I'll ask him what advice he has for Barack Obama and Hillary Clinton and why the born-again Christian says Jesus would approve of same-sex marriage.

Plus Donald Trump, just wrapping up an interview with Anderson Cooper and digging in on immigration, even as he admits he cannot be 100 percent certain he's hiring 100 percent legal workers.