Herman Cain Campaign Attempts to Answer Charges of Sexual Harassment Leveled at Candidate; Woman Who Accused Cain of Sexual Harassment Requesting Release from Confidentiality Agreement; Herman Cain's Evolving Denial
WOLF BLITZER, HOST: You're in THE SITUATION ROOM. Happening now, stock prices nose dive on Wall Street because of renewed fears about Europe's enormous debt. This hour, the surprise twist that has investors around the world deeply worried right now. Plus, Herman Cain's presidential campaign is actually profiting while the Republican keeps tweaking his denial of sexual harassment. Stand by to hear more of his newest, most detailed interview. Also, new interviews with President Obama are being released by the White House this hour, the White House giving rare access to local journalists and hoping to get something in return. We want to welcome our viewers in the United States and around the world. Breaking news, political headlines, and Jeanne Moos all straight ahead. I'm Wolf Blitzer. You're in THE SITUATION ROOM. On Wall Street today a hint of panic set in right at the opening bell. The Dow Jones Industrials plummeted after news that a carefully crafted European rescue plan may, repeat, may be falling apart. At the end of the day the Dow Jones was down almost 300 points the NASDAQ and S&P; 500 also sharply lower. The losses all because of a curve ball thrown by the nation of Greece. CNN's Erin Burnett joins us now from New York right now. She's watching the story now for us. Erin, explain what Greece is doing now to cause a near panic on the international markets today.</s>ERIN BURNETT, CNN ANCHOR: Well, Wolf, it's in a sense what they are not doing. We came in this morning. You know a few days ago markets were jumping around the world because Greece had a deal. It was a bailout deal that involved real pain in Greece, cuts in pensions, cuts in salaries, increase in working hours, working more years. But Greece was doing it to get a bailout from Europe which mattered for American banks, European banks, and very much for the European and U.S. economy. So we all thought it would be OK. But I remember coming on the show we were talking about this was not a done deal and there were issues. And then today, a complete curveball from the prime minister of Greece, Papandreou, saying all of a sudden, guess what, it's not done. We'll let the Greek people vote. Now, Wolf, you can imagine how the Greek people feel about all these austerity measures. It's tough on the average person in Greece who had to endure cutbacks. And 60 percent of Greeks in recent polls don't approve of the recent package. And if this package doesn't go through the entire existence of the European Union, the euro really could be in question. That's crucial for the U.S., for China, for the world.</s>BLITZER: Explain the second part. Why is it crucial for the U.S. if the people of Greece have to have a referendum on this and they vote down this deal that was supposedly in the works? Why should anyone in the United States care?</s>BURNETT: Well, the main reason, Wolf, is that even though Greece, as you point out, is two percent, two and a half percent of the European economy and a now probably less. It's not important in economic value but allowing Greece to fall out of the 17-member EU could break up the European Union. That's crucial for the world. The European Union as a group is the largest trading partner for the United States. It matters in terms of what disarray and deeper recessions there could mean for American companies and jobs. It also matters for American banks. Last month Morgan Stanley, for example, was in deep -- there was distress around the company, a big American bank, because of their exposure to European debt. Once Greece goes, Wolf, it's the EU that could fall apart, but it's not then probably just going to be Greece. It's Portugal, Spain, Italy. Spain and Italy are big and important economies.</s>BLITZER: I have heard it suggested, Erin -- and you know more about this than I do -- but the too big to fail nightmare we experienced in 2008 when the economy was collapsing at that time would be small potatoes compared to a collapse of the EU, the euro zone which could be triggered with a collapse of what's going on in Greece. Is that a fair analysis?</s>BURNETT: I think it is a fair analysis. And really, what happened is America led. America went through its financial crisis first. We are the world's biggest economy, still its most important by far, and our banks are still perceived to be safe havens around the world despite the financial crisis. So we went through it first. Everyone thought Europe may have just avoided it, but obviously that's not the case. And so now you are seeing Europe go through this. Some have said it could lead to a financial crisis even bigger than 2008, and in a sense Greece is to Europe as Bear Stearns was to the United States. Bear Stearns was the first domino to fall and the bank that got bailed out. Some people think it shows you have to bail Greece out. There are others are in the minority but they do feel strongly. They think we -- meaning U.S. and Europe -- should let Greece fail and we should deal with the repercussions because Greece will become Italy will become Spain like Bear Stearns became Lehman Brothers, Fannie Mae, Freddie Mac, and we saw how that situation ended and spiraled out of control. So most people think bailing out Greece is the right and necessary thing to do, but there are influential and credible people who think they should be allowed to fail.</s>BLITZER: It's a potential nightmare. I know you will have more coming up on your show later tonight. I want to alert our North American viewers. In addition to this, Erin has a special guest, the miracle on the Hudson captain, Captain Sullenburger. We have the video coming up this hour. You will speak with Sully at 7:00 p.m. eastern. "ERIN BURNETT OUTFRONT" for our North American viewers. Stand by for that. Erin, thank you. In the presidential race here in the United States Republican Herman Cain's denial of sexual harassment is a bit more detailed today, more confusing at least to some at the same time. Stand by to hear another large portion of his interview with our CNN sister network HLN's Robin Meade. Stand by for that. Right now, though, there is some new evidence that Herman Cain is actually profiting politically in some ways from this enormous fire storm. Let's bring in CNN's Joe Johns reporting on this story. What are you finding out, Joe?</s>JOE JOHNS, CNN SENIOR CORRESPONDENT: Wolf, it will be a while, of course, before we can draw any conclusions about the long-term effect of the story on Herman Cain's campaign. But anecdotally Republicans we are hearing from suggest Cain is getting the benefit of the doubt for now. And they are questioning whether he's under attack simply because he's a black conservative.</s>JOHNS: He's been all over the place on the facts and the timeline, but the message Cain and his campaign are sending to supporters is clear and simple. He says he was falsely accused of inappropriate behavior and says people are out to get him.</s>HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: I absolutely believe this is an intended smear campaign.</s>JOHNS: A smear campaign, a witch hunt because he's been doing well in the polls, he says, though it's still not clear whether, say, a Republican contender for the nomination or a Democrat leaked the story. In spite of that, one Republican strategist says the Cain message is actually playing very well so far because -- well, listen to Ron Bonjean.</s>RON BONJEAN, FOUNDER, THE BONJEAN COMPANY: Many Republican primary voters view this as a maneuver to oust Herman Cain from frontrunner status and that it could be even construed as a racist move.</s>JOHNS: To put a finer point on it, here's Rush Limbaugh on his radio show.</s>RUSH LIMBAUGH, RADIO TALK SHOW HOST: Classic drive-by media hit job on a black conservative.</s>JOHNS: That's right. In the view of some, because of race Cain is getting the same treatment as, say, Clarence Thomas during his Supreme Court confirmation hearings. Thomas was slammed by law professor Anita Hill for, you'll remember, alleged inappropriate behavior. Thomas called it a high tech lynching. Conservatives never forgot the way the Thomas case was handled. If you think they aren't giving Cain the benefit of the doubt at least for now, consider this. Yesterday the Cain campaign said it raised as much as $300,000 online. The candidate said it was one of their biggest fund-raising days so far.</s>BONJEAN: Cain survives this if there isn't any more news out there regarding it.</s>JOHNS: Still, even with as little as we know right now, political lessons are being learned. Even before the story broke, a CNN-ORC poll showed Cain was underperforming with women voters. Only 20 percent supported him in the national poll. So this can't be good news. Then there is the old fashioned question of candidate vetting. Is there anything else in Cain's past that no one took the time to thoroughly check out?</s>BONJEAN: Anyone running for president should be looking into their background and thinking to themselves, what can come out that's going to make me look bad and make the campaign look bad and potentially hurt my run to be president? And, how do we answer those questions when they come out? Clearly, his rise in the polls to the frontrunner status showed that they had not been prepared to do that.</s>JOHNS: Definitely an issue of vetting there. The apparent lack of full and complete vetting points back to something a lot of political consultants have been talking about these days. It's sort of the whiplash of campaign success when a candidate bolts from the middle of the back to front runner and the campaign isn't ready for it. It can be more than painful. The level of scrutiny goes way up, and that's certainly happened in the case of her man Cain, Wolf.</s>BLITZER: Joe, stand by. This just coming into THE SITUATION ROOM right now. A new report from the Washington Post quoting the attorney for one of the two women who apparently made the accusations of sexual harassment by Herman Cain as saying this woman would like to be released from the confidentiality agreement she signed with the National Restaurant Association, the trade association, the lobbying group which Herman Cain headed in Washington from 1996 to 1999. The lawyer for this woman, whose name has not been released, Joel P. Bennett, has called on the National Restaurant Association to release this woman. "It's just frustrating," Joel Bennett says, "that Herman Cain is going around bad mouthing the two complainants and my client is blocked by a confidentiality agreement. The National Restaurant Association ought to release them and allow them to respond." The statement from Joel Bennett goes on to say that this woman, his client attended an Ivy League school and now works for the federal government, has moved in with relatives because the news media is staking out her home in suburban Maryland right outside of Washington, D.C. Let's discuss a little bit of this with Joe Johns. Joe, you have been reporting on this from Sunday night when politico broke the story. What do you make of the development? A lawyer for the woman said if she is allowed to speak freely, he says for all practical purposes, he says if -- let me be precise. I want to quote from Bennett, the attorney. "If this woman is released from the confidentiality agreement," Bennett says, quote, "then it is a whole new ball game what she will say." It sounds dramatic. But give me your thoughts. And not only are you speaking as a reporter but an attorney as well.</s>JOHNS: I have a law degree, and I can tell you this -- a nondisclosure agreement can be defeated by the consent of all the parties. So if Herman Cain is putting information out there that his mind is fuzzy about, he can't quite remember or whatever, there is a very easy way for everybody to figure out exactly what happened back when they were at the National Restaurant Association, and that is for everybody to say I agree for the information to be released publically because Herman Cain is now running for president, sort of changed circumstances. That's a good way to get all the cards on the table and clear the air on this story for Herman Cain and the other parties involved, Wolf.</s>BLITZER: Let me bring in Jeffrey Toobin -- Joe stand by for a moment -- our senior legal analyst is joining us on the phone. All right, a lawyer is now involved representing one of the two women. Jeffrey, you read the story in the Washington Post that's just moved on its website. What do you think?</s>JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: It makes a lot of sense for what this lawyer is saying because a nondisclosure agreement is just a contract. It's not a government document. It's an agreement between private parties, and it says none of the participants can talk about what went on. But because it's a contract between private parties it can be changed, and they can say this is no longer operative. We've agreed that everyone can now speak about it. But all the parties have to agree. What makes this somewhat complicated is that it's not Herman Cain who was apparently the party to the contract. It's the National Restaurant Association. And even if Cain says I want you to release all confidentiality, the National Restaurant Association may for its own reasons say we don't want to do it. So there will be a complicated scenario here of what the National Restaurant Association does because they are sort of an independent actor, but also presumably acting at the behest of Cain in the past. So they will have a very tough decision to make.</s>BLITZER: Joe, you reported yesterday the National Restaurant Association, this trade association here in Washington which Herman Cain headed back in the 1990s, they issued a statement saying they never discussed personnel matters, period. That was their statement, right?</s>JOHNS: Sure. And it's certainly a very blanket statement and apparently not wanting to get on the record a whole lot more on this. It is sort of a sticky situation because there are a lot people saying maybe Herman Cain was in trouble, but maybe the National Restaurant Association just wanted to get rid of this and not go any further with it. So they are going to pay out a sum of money. But whatever it is, we don't know. And for the presidential campaign and all the people who have to make decisions as voters, it seems to me it's perfectly logical to get that kind of information out there in the public arena so people can no longer speculate about who did this or why or what the sum details are, Wolf.</s>BLITZER: When a story like this begins you never know where it's going to wind up. I want everybody to stand by. We'll have much more on the developing story, new details emerging in the Washington Post quoting an attorney representing one of the two women alleging sexual harassment by Herman Cain in the 1990s as saying she wants to go public and tell her side of the story. Stand by for more on this breaking news when we come back. Also, a former U.S. governor asked to account for millions of dollars missing from the books of a failed brokerage firm. And there was a lot chaos after this emergency landing. Wait until you see the drama when the jet touched down.