1
00:00:09,943 --> 00:00:17,450
>> ON THE NIGHT OF APRIL 16,
2013, A MYSTERIOUS INCIDENT
SOUTH OF SAN JOSE MARKED THE
MOST SERIOUS ATTACK ON OUR POWER
2
00:00:17,517 --> 00:00:22,155
GRID IN HISTORY.
IF THEY HAD SUCCEEDED, WHAT
WOULD'VE HAPPENED?
>> COULD'VE BROUGHT DOWN ALL OF
3
00:00:22,222 --> 00:00:26,326
SILICON VALLEY.
>> WE'RE TALKING GOOGLE, APPLE;
ALL THESE GUYS--
>> YES, YES.
4
00:00:26,393 --> 00:00:30,964
THAT'S CORRECT.
>> WHO DO YOU THINK THIS COULD
HAVE BEEN?
>> I DON'T KNOW.
5
00:00:31,030 --> 00:00:35,435
WE DON'T KNOW IF THEY WERE A
NTION STATE.
WE DON'T KNOW IF THEY WERE
DOMESTIC ACTORS.
6
00:00:35,502 --> 00:00:43,076
BUT IT WAS SOMEBODY WHO DID HAVE
COMPETENT PEOPLE WHO COULD, IN
FACT, PLAN OUT THIS KIND OF A
VERY SOPHISTICATED ATTACK AND
7
00:00:43,143 --> 00:00:51,451
EXECUTE IT.
( TICKING )
>> I'M KIND OF SURPRISED THAT
THERE ARE MANY MORE-- MANY MORE
8
00:00:51,518 --> 00:00:56,022
HOSTAGES BEING HELD BY
GOVERNMENTS THAN BY TERRORISTS.
>> I KNOW.
THAT IS SURPRISING, ISN'T IT?
9
00:00:56,089 --> 00:01:03,496
THE MAJORITY OF OUR CASES ARE
ACTUALLY WHAT WE CALL WRONGFUL
DETENTIONS.
IT'S WHEN A NATION-STATE
10
00:01:03,563 --> 00:01:08,067
ACTUALLY IS DETAINING AMERICAN
ESSENTIALLY UNJUSTLY
>> THAT GOVERNMENT WANTS
SOMETHING IN RETURN FOR OUR
11
00:01:08,134 --> 00:01:17,177
CITIZEN.
>> THEY WANT TO USE-- THAT
PERSON FOR POLITICAL LEVERAGE.
THEY WANT TO USE THEM AS A
12
00:01:17,243 --> 00:01:22,348
BARGAINING CHIP.
( TICKING )
>> MY DESK WAS RIGHT ABOUT HERE.
AND THE EDITOR SAT UP THERE.
13
00:01:22,415 --> 00:01:29,189
>> AMERICA'S NEWSPAPER INDUSTRY
IS IN A STATE OF DECLINE, PARTLY
DUE TO A LOSS OF ADVERTISING
REVENUE, PARTLY DUE TO FINANCIAL
14
00:01:29,255 --> 00:01:34,727
FIRMS THAT HAVE BOUGHT UP NEARLY
A THIRD OF THE DAILY PAPERS IN
THE U.S.
SO, WHAT'S THE COST TO AMERICAN
15
00:01:34,794 --> 00:01:39,499
CITIZENS?
>> THIS IS AN ATTACK ON OUR
DEMOCRACY.
( TICKING )
16
00:01:39,566 --> 00:01:44,003
>> I'M LESLEY STAHL.
>> I'M BILL WHITAKER.
>> I'M ANDERSON COOPER.
>> I'M SHARYN ALFONSI.
17
00:01:44,070 --> 00:01:51,144
>> I'M JON WERTHEIM.
>> I'M SCOTT PELLEY.
THOSE STORIES TONIGHT ON
"60 MINUTES."
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00:01:51,211 --> 00:01:58,251
BUT FIRST, HOLLY WILLIAMS WITH
THE LATEST FROM UKRAINE THIS
EVENING.
>> Williams: TODAY, RUSSIAN
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00:01:58,318 --> 00:02:05,592
GROUND FORCES CONTINUED TO PRESS
UKRAINE'S TWO LARGEST CITIES,
KHARKIV, AND THE CAPITAL, KYIV.
IT'S THE FOURTH DAY OF WAR HERE,
20
00:02:05,658 --> 00:02:13,533
BUT AS THE SUN SET, UKRAINE'S
GOVERNMENT AND THE KREMLIN
AGREED TO HOLD TALKS.
YET, IN AN UNNERVING SIGN OF HOW
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00:02:13,600 --> 00:02:18,671
THINGS COULD ESCALATE, PRESIDENT
VLADIMIR PUTIN ORDERED RUSSIA'S
NUCLEAR FORCES ON HIGHER ALERT,
WHILE THE U.S. AND EUROPE HAVE
22
00:02:18,738 --> 00:02:24,043
INCREASED THEIR WEAPONS
SHIPMENTS TO UKRAINE.
( EXPLOSION )
RESISTANCE HERE HAS LOOKED
23
00:02:24,110 --> 00:02:31,584
DETERMINED, WITH VIDEOS EMERGING
OF KILLED AND CAPTURED RUSSIAN
SOLDIERS, AND DESTROYED RUSSIAN
TANKS AND VEHICLES.
24
00:02:31,651 --> 00:02:38,424
UKRAINIAN VOLUNTEERS HAVE TAKEN
UP ARMS, AND OTHERS HAVE
PREPARED MOLOTOV COCKTAILS AT
THE REQUEST OF THEIR GOVERNMENT.
25
00:02:38,491 --> 00:02:43,796
( EXPLOSION )
MOSCOW CLAIMS IT HASN'T TARGETED
CIVILIANS, BUT UKRAINE SAYS
RUSSIAN FORCES HAVE FIRED
26
00:02:43,863 --> 00:02:51,137
INDISCRIMINATELY.
LOOK AT THIS.
WE'VE SEEN PEOPLE HERE TAKING
COVER IN THE SUBWAY, WHERE MANY
27
00:02:51,204 --> 00:02:57,911
ARE SLEEPING AT NIGHT.
AND NEARLY 400,000 HAVE ALREADY
FLED ACROSS UKRAINE'S BORDERS,
ACCORDING TO THE UNITED NATIONS.
28
00:02:57,977 --> 00:03:03,650
LINES TO ENTER POLAND AND
ROMANIA HAVE STRETCHED FOR
MILES.
IN THE MONTHS LEADING UP TO THIS
29
00:03:03,716 --> 00:03:08,555
INVASION, MANY ORDINARY
UKRAINIANS TOLD US THEY'D LAY
DOWN THEIR LIVES TO PROTECT
THEIR COUNTRY, AND NOW IT
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00:03:08,621 --> 00:03:15,895
APPEARS THEY WERE DEADLY
SERIOUS.
FOR "60 MINUTES," I'M HOLLY
WILLIAMS, IN VYNNITSIA, UKRAINE.
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00:03:23,069 --> 00:03:29,876
>> Whitaker: UKRAINIANS ARE
FACING THE PROSPECT OF MASSIVE
POWER OUTAGES, AS RUSSIAN FORCES
FIGHT FOR CONTROL OF AREAS THAT
32
00:03:29,943 --> 00:03:37,050
HOUSE VITAL PARTS OF UKRAINE'S
ELECTRIC GRID.
IF MOSCOW SHUTS DOWN THE GRID,
MILLIONS COULD BE LEFT WITHOUT
33
00:03:37,116 --> 00:03:46,159
LIGHT, HEAT, REFRIGERATION,
WATER, PHONES AND INTERNET.
THE WHITE HOUSE IS MONITORING
OUR OWN CRITICAL INFRASTRUCTURE
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00:03:46,225 --> 00:03:54,901
AFTER TWO DEPARTMENT OF HOMELAND
SECURITY WARNINGS LAST MONTH
ABOUT THREATS TO OUR GRID.
ONE NOTED RUSSIA HAS PROVEN ITS
35
00:03:54,968 --> 00:04:01,140
ABILITY TO USE CYBERATTACKS TO
SHUT DOWN ELECTRIC GRIDS, AND
"COMPROMISED U.S. ENERGY
NETWORKS."
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00:04:01,207 --> 00:04:07,080
WE'VE BEEN LOOKING AT THE GRID
FOR MONTHS, AND WERE SURPRISED
TO LEARN HOW VULNERABLE IT IS,
AND HOW OFTEN IT'S DELIBERATELY
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00:04:07,146 --> 00:04:15,121
TARGETED.
ONE ATTACK, NINE YEARS AGO, WAS
A WAKE-UP CALL FOR INDUSTRY AND
GOVERNMENT.
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00:04:15,188 --> 00:04:23,062
>> KPIX Reporter: THERE'S BEEN A
MAJOR TRANSFORMER LEAK.
THIS IS AT A PG&E SUBSTATION.
>> Whitaker: ON THE NIGHT OF
39
00:04:23,129 --> 00:04:31,204
APRIL 16, 2013, A MYSTERIOUS
INCIDENT SOUTH OF SAN JOSE
MARKED THE MOST SERIOUS ATTACK
ON OUR POWER GRID IN HISTORY.
40
00:04:31,270 --> 00:04:37,710
>> KPIX Reporter: PG&E TELLS US
SOMEONE MAY HAVE FIRED SOME
SHOTS INTO THAT TRANSFORMER.
>> Whitaker: FOR 20 MINUTES,
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00:04:37,777 --> 00:04:45,118
GUNMEN METHODICALLY FIRED AT
HIGH VOLTAGE TRANSFORMERS AT THE
METCALF POWER SUBSTATION.
SECURITY CAMERAS CAPTURED
42
00:04:45,184 --> 00:04:49,422
BULLETS HITTING THE CHAIN LINK
FENCE.
>> Jon Wellinghoff: THEY KNEW
WHAT THEY WERE DOING.
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00:04:49,489 --> 00:04:55,061
THEY HAD A SPECIFIC OBJECTIVE.
THEY WANTED TO KNOCK OUT THE
SUBSTATION.
>> Whitaker: AT THE TIME, JON
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00:04:55,128 --> 00:05:03,136
WELLINGHOFF WAS CHAIRMAN OF
F.E.R.C., THE FEDERAL ENERGY
REGULATORY COMMISSION, A SMALL
GOVERNMENT AGENCY WITH
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00:05:03,202 --> 00:05:09,575
JURISDICTION OVER THE U.S. HIGH
VOLTAGE TRANSMISSION SYSTEM.
>> Whitaker: YOU WERE CONCERNED
ENOUGH THAT YOU FLEW OUT THERE?
46
00:05:09,642 --> 00:05:14,814
>> Wellinghoff: THAT'S CORRECT,
AND I TOOK TWO OTHER INDIVIDUALS
WHO TRAIN SPECIAL FORCES, U.S.
SPECIAL FORCES.
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00:05:14,881 --> 00:05:22,922
THEY TRAIN PEOPLE TO ACTUALLY
ATTACK INFRASTRUCTURE.
>> Whitaker: AND WHAT THE FORMER
COMMANDOS FOUND LOOKED FAMILIAR.
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00:05:22,989 --> 00:05:29,996
THEY DISCOVERED THE ATTACKERS
HAD RECONNOITERED THE SITE AND
MARKED FIRING POSITIONS WITH
PILES OF ROCKS.
49
00:05:30,063 --> 00:05:35,134
THAT NIGHT THEY BROKE INTO TWO
UNDERGROUND VAULTS AND CUT OFF
COMMUNICATIONS COMING FROM THE
SUBSTATION.
50
00:05:35,201 --> 00:05:43,142
>> Wellinghoff: THEN THEY WENT
FROM THESE VAULTS, ACROSS THIS
ROAD, OVER INTO A PASTURE AREA
HERE.
51
00:05:43,209 --> 00:05:49,549
THERE WERE AT LEAST FOUR OR FIVE
DIFFERENT FIRING POSITIONS.
Whitaker: NO REAL SECURITY?
>> Wellinghoff: THERE WAS NO
52
00:05:49,615 --> 00:05:57,423
SECURITY AT ALL, REALLY.
>> Whitaker: THEY AIMED AT THE
NARROW COOLING FINS, CAUSING 17
OF 21 LARGE TRANSFORMERS TO
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00:05:57,490 --> 00:06:02,962
OVERHEAT AND STOP WORKING.
>> Wellinghoff: THEY HIT THEM 90
TIMES, SO THEY WERE VERY
ACCURATE.
54
00:06:03,029 --> 00:06:07,934
AND THEY WERE DOING THIS AT
NIGHT, WITH MUZZLE FLASH IN
THEIR FACE.
>> Whitaker: SOMEONE OUTSIDE THE
55
00:06:08,000 --> 00:06:15,274
PLANT HEARD GUNFIRE AND CALLED
911.
THE GUNMEN DISAPPEARED WITHOUT A
TRACE ABOUT A MINUTE BEFORE A
56
00:06:15,341 --> 00:06:23,282
PATROL CAR ARRIVED.
THE SUBSTATION WAS DOWN FOR
WEEKS, BUT FORTUNATELY PG&E HAD
ENOUGH TIME TO REROUTE POWER AND
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00:06:23,349 --> 00:06:27,453
AVOID DISASTER.
IF THEY HAD SUCCEEDED, WHAT
WOULD'VE HAPPENED?
>> Wellinghoff: COULD'VE BROUGHT
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00:06:27,520 --> 00:06:31,924
DOWN ALL OF SILICON VALLEY.
>> Whitaker: WE'RE TALKING
GOOGLE, APPLE; ALL THESE GUYS--
>> Wellinghoff: YES, YES. THAT'S
59
00:06:31,991 --> 00:06:39,766
CORRECT.
>> Whitaker: WHO DO YOU THINK
THIS COULD HAVE BEEN?
>> Wellinghoff: I DON'T KNOW, WE
60
00:06:39,832 --> 00:06:43,202
DON'T KNOW IF THEY WERE A NATION
STATE.
WE DON'T KNOW IF THEY WERE
DOMESTIC ACTORS.
61
00:06:43,269 --> 00:06:49,275
BUT IT WAS SOMEBODY WHO DID HAVE
COMPETENT PEOPLE, WHO COULD IN
FACT, PLAN OUT THIS KIND OF A
VERY SOPHISTICATED ATTACK.
62
00:06:49,342 --> 00:06:57,950
>> Whitaker: THE GRID IS A
SPRAWLING TARGET.
THERE ARE ACTUALLY THREE IN THE
U.S.: THE EASTERN, WESTERN AND
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00:06:58,017 --> 00:07:06,192
TEXAS HAS ITS OWN.
MOST OF US RARELY NOTICE
SUBSTATIONS.
THERE ARE 55,000 ACROSS THE
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00:07:06,259 --> 00:07:13,366
COUNTRY, EACH HOUSING
TRANSFORMERS, THE WORKHORSES OF
THE GRID.
INSIDE THESE MASSIVE METAL
65
00:07:13,432 --> 00:07:19,272
BOXES, RAW ELECTRICITY IS
CONVERTED TO HIGHER OR LOWER
VOLTAGES.
( EXPLOSION )
66
00:07:19,338 --> 00:07:28,481
SHOULD A TRANSFORMER EXPLODE,
LIKE THIS ONE IN MANHATTAN
DURING SUPERSTORM SANDY, THE
SYSTEM IS DESIGNED TO TRIGGER A
67
00:07:28,548 --> 00:07:35,354
LOCALIZED, GRID-PRESERVING
BLACKOUT.
BUT IF SEVERAL SECTIONS OF THE
GRID GO DOWN AT THE SAME TIME,
68
00:07:35,421 --> 00:07:43,930
THE SHUTDOWNS CAN CASCADE LIKE
DOMINOES.
THAT'S WHAT SET OFF THE GREAT
NORTHEAST BLACKOUT IN 2003,
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00:07:43,996 --> 00:07:54,674
LEAVING 45 MILLION AMERICANS
WITHOUT POWER.
A FEW MONTHS BEFORE THE ASSAULT
ON METCALF, JON WELLINGHOFF OF
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00:07:54,740 --> 00:08:01,414
F.E.R.C. COMMISSIONED A STUDY TO
SEE IF A PHYSICAL ATTACK ON
CRITICAL TRANSFORMERS COULD
TRIGGER CASCADING BLACKOUTS.
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00:08:01,480 --> 00:08:07,320
>> Wellinghoff: IT WAS ACTUALLY
A VERY SHOCKING RESULT TO US
THAT THERE'S VERY FEW NUMBER OF
SUBSTATIONS YOU NEED TO TAKE
72
00:08:07,386 --> 00:08:18,130
OUT, IN THE ENTIRE UNITED
STATES, TO KNOCK OUT THE ENTIRE
GRID.
>> Whitaker: KNOCK OUT THE
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00:08:18,197 --> 00:08:21,334
ENTIRE GRID?
>> Wellinghoff: THAT'S CORRECT.
>> Whitaker: HOW MANY WOULD IT
TAKE TO KNOCK OUT PUTTING THE
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00:08:21,400 --> 00:08:24,237
ENTIRE COUNTRY IN A BLACKOUT?
>> Wellinghoff: LESS THAN 20.
>> Whitaker: THE REPORT WAS
LEAKED TO THE "WALL STREET
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00:08:24,303 --> 00:08:27,807
JOURNAL."
IT FOUND THE U.S. COULD SUFFER A
COAST-TO-COAST BLACKOUT IF
SABOTEURS KNOCKED OUT JUST NINE
76
00:08:27,874 --> 00:08:33,212
SUBSTATIONS.
YOU ARE RELAYING THIS IN A VERY
MEASURED WAY.
I WOULD THINK THIS WOULD BE
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00:08:33,279 --> 00:08:39,318
QUITE ALARMING.
>> Wellinghoff: IT WAS ALARMING.
THERE'S NO QUESTION, IT IS
ALARMING.
78
00:08:39,385 --> 00:08:45,057
>> Whitaker: AFTER THE METCALF
ATTACK, F.E.R.C. PRESSED THE
UTILITIES TO HARDEN DEFENSES AT
THEIR MOST CRITICAL
79
00:08:45,124 --> 00:08:54,133
SUBSTATIONS-- ERECT WALLS AND
SENSORS TO PREVENT SIMILAR
ATTACKS-- THERE'S NOW A WALL
AROUND METCALF.
80
00:08:54,200 --> 00:09:01,474
BUT MANY SUBSTATIONS REMAIN
VULNERABLE TARGETS, LIKE THIS
ONE WE FOUND IN SOUTHERN
CALIFORNIA THAT SERVES MORE THAN
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00:09:01,540 --> 00:09:09,048
300,000 CUSTOMERS, HUGE
TRANSFORMERS PROTECTED BY A
CHAIN LINK FENCE.
>> Dr. Granger Morgan: ANYBODY
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00:09:09,115 --> 00:09:15,788
WHO KNOWS ABOUT POWER SYSTEMS
KNOWS THAT THE, THE GRID IS
PHYSICALLY SPREAD ALL OVER THE
COUNTRYSIDE.
83
00:09:15,855 --> 00:09:20,026
THERE ARE A LOT OF PLACES THAT
ARE VULNERABLE.
>> Whitaker: DR. GRANGER MORGAN
IS A CARNEGIE MELLON UNIVERSITY
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00:09:20,092 --> 00:09:27,400
PROFESSOR OF ENGINEERING WHO
CHAIRED THREE NATIONAL ACADEMY
OF SCIENCES REPORTS ON THE POWER
GRID FOR THE U.S. GOVERNMENT,
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00:09:27,466 --> 00:09:37,043
THE MOST RECENT IN 2021.
AN EARLIER REPORT ON TERRORISM
WAS CLASSIFIED FOR FIVE YEARS.
>> Dr. Morgan: WE SIMPLY MADE A
86
00:09:37,109 --> 00:09:43,516
STRONG CASE THAT THE GRID WAS
PHYSICALLY VERY VULNERABLE.
>> Whitaker: WHY WAS THERE A
SPECIFIC REPORT ON TERRORISM AND
87
00:09:43,582 --> 00:09:49,488
THE GRID?
>> Dr. Morgan: THERE WERE
CONCERNS ABOUT THE POSSIBILITY
THAT A TERRORIST ORGANIZATION
88
00:09:49,555 --> 00:09:57,863
COULD ATTACK THE GRID.
AND AROUND THE WORLD, THERE HAVE
BEEN A FAIR NUMBER OF ATTACKS ON
GRIDS.
89
00:09:57,930 --> 00:10:06,872
>> Whitaker: THEY HAVE ATTACKED
WITH BOMBS, PLANES AND DRONES.
RUSSIA'S CYBERATTACK ON
UKRAINE'S GRID IN 2015 KNOCKED
90
00:10:06,939 --> 00:10:12,812
ABOUT 60 SUBSTATIONS OFFLINE,
LEAVING 230,000 PEOPLE IN THE
DARK.
THE U.S. SECRETARY OF ENERGY HAS
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00:10:12,878 --> 00:10:19,385
SAID RUSSIA COULD DO THE SAME
THING HERE.
>> Dr. Morgan: IN THE REPORT WE
DID ON THE RESILIENCE OF THE
92
00:10:19,452 --> 00:10:29,195
POWER SYSTEM, WE DID ARGUE THAT
WE NEEDED AN ORGANIZATION,
PROBABLY D.O.E. AND DEPARTMENT
OF HOMELAND SECURITY, TO
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00:10:29,261 --> 00:10:34,867
SYSTEMATICALLY LOOK AT ALL THE
KINDS OF VULNERABILITIES WE HAVE
AND THEN BEGIN TO FIGURE OUT WHO
COULD ADDRESS EACH.
94
00:10:34,934 --> 00:10:40,006
IN TERMS OF RESILIENCE ISSUES,
THERE'S NOBODY IN CHARGE.
I MEAN, THERE'S NO SINGLE ENTITY
THAT HAS RESPONSIBILITY FOR
95
00:10:40,072 --> 00:10:46,012
EVERYTHING.
>> Mike Mabee: THE U.S. ELECTRIC
GRID IS THE LARGEST MACHINE IN
THE HISTORY OF MANKIND.
96
00:10:46,078 --> 00:10:53,719
IT IS A MARVEL OF MODERN
ENGINEERING.
NO ONE PERSON OWNS OR CONTROLS
IT.
97
00:10:53,786 --> 00:10:59,191
IT'S ACTUALLY 3,000 DIFFERENT
COMPANIES, BOTH PUBLIC AND
PRIVATE SECTOR, THAT OWN OR
OPERATE LITTLE PIECES OF THE
98
00:10:59,258 --> 00:11:05,798
ELECTRIC GRID.
>> Whitaker: MIKE MABEE IS AN
IRAQ WAR VET, A FORMER COP AND A
SELF-TAUGHT GRID SECURITY
99
00:11:05,865 --> 00:11:13,539
EXPERT.
BY DAY HE WORKS FOR THE
GOVERNMENT, IN HIS SPARE TIME,
HE UNCOVERS PUBLIC INFORMATION
100
00:11:13,606 --> 00:11:24,617
ELECTRIC UTILITIES WOULD RATHER
NOT SEE THE LIGHT OF DAY AND
PUBLISHES THEM ON A WEB SITE
CALLED "GRID SECURITY NOW."
101
00:11:24,683 --> 00:11:30,289
HE IS BOTH FASCINATED AND
HORRIFIED BY THE GRID.
>> Mabee: I THINK EVERYBODY
NEEDS TO BE AS ALARMED AS I AM.
102
00:11:30,356 --> 00:11:37,563
WE'VE HAD DISASTERS IN THE PAST
BUT THEY'VE GENERALLY ALWAYS
BEEN REGIONAL IN SCALE.
WHAT WE'VE NEVER HAD IS A
103
00:11:37,630 --> 00:11:44,770
NATIONAL-SCALE BLACKOUT, WHICH
IS COMPLETELY POSSIBLE UNDER
SOME KNOWN THREATS SUCH AS THE
CYBER THREAT, THE PHYSICAL
104
00:11:44,837 --> 00:11:51,477
SECURITY THREAT, OR EVEN EXTREME
WEATHER.
AND THE U.S. PUBLIC IS
COMPLETELY UNPREPARED TO SURVIVE
105
00:11:51,544 --> 00:11:58,951
WITHOUT THE ELECTRIC GRID FOR
ANY PERIOD OF TIME WHATSOEVER.
>> Whitaker: SO YOU HAVE WIND
POWER, TOO?
106
00:11:59,018 --> 00:12:04,557
SO WHEN HE MOVED TO TEXAS TWO
YEARS AGO, HE PREPARED FOR THE
WORST, INSTALLING SOLAR, WIND
AND BATTERY POWER.
107
00:12:04,623 --> 00:12:10,496
>> Mabee: THE WHOLE SYSTEM'S 48
VOLTS.
>> Whitaker: MABEE'S FAMILY
SURVIVED LAST WINTER'S DEADLY
108
00:12:10,563 --> 00:12:18,471
STORM, HUNDREDS OF TEXANS
PERISHED.
>> Mabee: AND THE DEATHS WERE
LARGELY DUE TO HYPOTHERMIA,
109
00:12:18,537 --> 00:12:23,876
CARBON MONOXIDE POISONING
BECAUSE WHEN PEOPLE GOT COLD
THEY WOULD DO THINGS LIKE GO
INTO THEIR CAR IN THE GARAGE TO
110
00:12:23,943 --> 00:12:30,883
TRY TO STAY WARM.
>> Whitaker: MABEE HAS BECOME A
THORN IN THE SIDE OF THE FEDERAL
GOVERNMENT AND UTILITY
111
00:12:30,950 --> 00:12:33,986
COMPANIES.
>> Mabee: I FILED A COMPLAINT
ABOUT SUPPLY CHAIN
CYBERSECURITY.
112
00:12:34,053 --> 00:12:39,191
I FILED A COMPLAINT ABOUT
PHYSICAL SECURITY.
I FILED A COMPLAINT ABOUT THE
TEXAS BLACKOUT.
113
00:12:39,258 --> 00:12:46,866
>> Whitaker: THE GOVERNMENT AND
THE INDUSTRY.
THEY THINK YOU'RE AN ANNOYANCE?
>> Mabee: I'VE BEEN TERMED A
114
00:12:46,932 --> 00:12:51,537
"GRID SECURITY GADFLY," WHICH I
WEAR THAT AS A BADGE OF HONOR.
>> Whitaker: ONE FREQUENT
TARGET: THE DEPARTMENT OF
115
00:12:51,604 --> 00:13:00,646
ENERGY.
MABEE TOLD US THE GRID
INFORMATION THE D.O.E. PUTS OUT
IS CONFUSING AND DISPERSED.
116
00:13:00,713 --> 00:13:07,620
HE SAID HE SPENDS HOURS TRYING
TO MAKE SENSE OF IT ALL.
>> Mabee: THERE IS A REQUIREMENT
THAT THEY REPORT ELECTRIC
117
00:13:07,686 --> 00:13:12,358
DISTURBANCE EVENTS.
BUT THE DATA FROM THE DEPARTMENT
OF ENERGY IS SO BAD.
SO, YOU KNOW, I TOOK IT UPON
118
00:13:12,424 --> 00:13:20,332
MYSELF TO DO SOME DATA
CRUNCHING.
AND WHAT I FOUND IS THAT 38% OF
THE ELECTRIC DISTURBANCE EVENTS
119
00:13:20,399 --> 00:13:25,070
IN THE UNITED STATES ARE DUE TO
PHYSICAL ATTACKS AGAINST THE
ELECTRIC.
>> Whitaker: 38%?
120
00:13:25,137 --> 00:13:31,177
THAT'S A LOT.
>> Mabee: SO, IN THE PAST
DECADE, THERE HAVE BEEN OVER 700
PHYSICAL ATTACKS AGAINST THE
121
00:13:31,243 --> 00:13:37,683
U.S. ELECTRIC GRID.
>> Whitaker: MANY ARE COPY CATS
OF THE METCALF ASSAULT.
IN 2016, AN ECO TERRORIST IN
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00:13:37,750 --> 00:13:45,758
UTAH SHOT UP A LARGE
TRANSFORMER, TRIGGERING A
BLACKOUT.
HE SAID HE'D PLANNED TO HIT FIVE
123
00:13:45,824 --> 00:13:55,501
SUBSTATIONS IN ONE DAY TO SHUT
DOWN THE WEST COAST.
IN 2020, THE F.B.I. UNCOVERED A
WHITE SUPREMACIST PLOT CALLED
124
00:13:55,568 --> 00:13:59,939
"LIGHTS OUT" TO SIMULTANEOUSLY
ATTACK SUBSTATIONS AROUND THE
COUNTRY.
>> Liz Sherwood-Randall: WE'RE
125
00:14:00,005 --> 00:14:11,217
SEEING PLANNING TO DISABLE THE
DELIVERY OF POWER TO THE
AMERICAN PEOPLE.
>> Whitaker: DR. LIZ SHERWOOD-
126
00:14:11,283 --> 00:14:14,954
RANDALL IS PRESIDENT BIDEN'S
HOMELAND SECURITY ADVISOR.
WE MET WITH HER AND ANNE
NEUBERGER, DEPUTY NATIONAL
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00:14:15,020 --> 00:14:22,261
SECURITY ADVISOR FOR CYBER.
THEY TOLD US THE
ADMINISTRATION'S INFRASTRUCTURE
PLANS SHOULD HELP SECURE THE
128
00:14:22,328 --> 00:14:27,032
GRID, BUT ACKNOWLEDGE THE
THREATS ARE REAL.
>> Sherwood-Randall: WE HAVE
PHYSICAL THREATS TO THE GRID.
129
00:14:27,099 --> 00:14:31,103
WE HAVE NATURAL THREATS TO THE
GRID.
WE HAVE CYBER THREATS TO THE
GRID.
130
00:14:31,170 --> 00:14:37,710
>> Whitaker: NEUBERGER CAME TO
THE WHITE HOUSE FROM THE
SECRETIVE NATIONAL SECURITY
AGENCY, WHERE SHE BATTLED
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00:14:37,776 --> 00:14:42,748
RUSSIAN HACKERS IN CYBERSPACE.
YOU SAID THAT YOU'VE BEEN
TALKING TO PRIVATE UTILITY
COMPANIES AROUND THE COUNTRY
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00:14:42,815 --> 00:14:49,255
ABOUT THE POTENTIAL FOR A CYBER
ATTACK.
WHAT ARE YOU TELLING THEM?
>> Anne Neuberger: WE'RE SHARING
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00:14:49,321 --> 00:14:55,661
WITH THEM SOME OF THE CONTEXT
REGARDING HOW RUSSIA AND OTHER
COUNTRIES USE CYBER IN CRISIS OR
CONFLICT.
134
00:14:55,728 --> 00:15:01,800
WE'VE ACTIVELY DOWNGRADED
INTELLIGENCE.
WE'VE TAKEN ANY INFORMATION WE
HAVE ABOUT MALICIOUS SOFTWARE OR
135
00:15:01,867 --> 00:15:07,740
TACTICS THAT THE RUSSIAN
GOVERNMENT HAS USED, SHARED THAT
WITH THE PRIVATE SECTOR WITH
VERY PRACTICAL ADVICE OF HOW TO
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00:15:07,806 --> 00:15:18,250
PROTECT AGAINST IT.
>> Whitaker: ISN'T THE PROBLEM
THAT WHEN IT COMES TO THE GRID,
THERE'S NOTHING LIKE THE F.A.A.
137
00:15:18,317 --> 00:15:23,856
OR THE FOOD AND DRUG
ADMINISTRATION OR THE SECURITIES
AND EXCHANGE COMMISSION?
THERE'S NO ONE OVERALL AGENCY
138
00:15:23,922 --> 00:15:29,528
OVERSEEING THESE, YOU SAID,
3,000 DIFFERENT UTILITIES ACROSS
THE COUNTRY?
>> Sherwood-Randall: WE DON'T
139
00:15:29,595 --> 00:15:35,734
HAVE ONE SYSTEM.
WE HAVE SEVERAL GRIDS.
WE ALSO HAVE INDIVIDUAL ENERGY
ECOSYSTEMS IN REGIONS AND
140
00:15:35,801 --> 00:15:43,108
STATES.
AND THAT'S PART OF OUR STRENGTH,
BECAUSE THE RESOURCES FOR ENERGY
ARE DIFFERENT IN DIFFERENT
141
00:15:43,175 --> 00:15:47,046
REGIONS.
AND WE HAVE TO ACKNOWLEDGE THAT
WE'RE NOT GOING TO HAVE A
ONE-SIZE-FITS-ALL SYSTEM.
142
00:15:47,112 --> 00:15:54,887
>> Whitaker: YOU CALL IT ONE OF
OUR STRENGTHS.
BUT IT ALSO SEEMS TO BE ONE OF
OUR VULNERABILITIES.
143
00:15:54,953 --> 00:15:59,958
>> Sherwood-Randall: WELL, IN MY
VIEW, WE CAN'T IMPOSE THE
REGULATIONS THAT WOULD-- YOU
WOULD BE SUGGESTING AS A FEDERAL
144
00:16:00,025 --> 00:16:06,532
GOVERNMENT.
WE CAN SET STANDARDS AND WE ARE
SETTING STANDARDS IN A VARIETY
OF ARENAS.
145
00:16:06,598 --> 00:16:13,539
>> Whitaker: CARNEGIE MELLON'S
GRANGER MORGAN SAYS WHAT
GOVERNMENT, INDUSTRY AND LAW
ENFORCEMENT ARE DOING DOESN'T
146
00:16:13,605 --> 00:16:19,812
MEET THE MAGNITUDE OF THE
THREAT.
>> Dr. Morgan: WHAT WE NEED AT
THIS POINT IS TO GET THE WHITE
147
00:16:19,878 --> 00:16:25,884
HOUSE TO PUT ALL THE KEY PLAYERS
TOGETHER IN A ROOM TO IDENTIFY
THE BIGGEST VULNERABILITIES AND
THEN TAKE STEPS TO REDUCE THEM.
148
00:16:25,951 --> 00:16:32,691
>> Whitaker: I'M SURPRISED
THAT'S NOT BEING DONE.
>> Dr. Morgan: IT HAS NOT BEEN
DONE AND IT NEEDS TO HAPPEN NOW.
149
00:16:32,758 --> 00:16:38,430
( TICKING )
150
00:16:40,666 --> 00:16:46,972
>> Stahl: WHEN MOST OF US HEAR
THE WORD “HOSTAGE,” WE THINK OF
SOMEONE HELD CAPTIVE BY A
TERRORIST GROUP, OR CRIMINAL
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00:16:47,039 --> 00:16:55,614
GANG SEEKING RANSOM, ATTENTION,
OR WORSE.
BUT THE VAST MAJORITY OF
AMERICANS IMPRISONED ABROAD
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00:16:55,681 --> 00:17:01,420
TODAY ARE HELD NOT BY TERRORIST
GROUPS, BUT BY FOREIGN
GOVERNMENTS, WITH WHOM THE U.S.
HAS THORNY, OR IN SOME CASES, NO
153
00:17:01,487 --> 00:17:09,862
RELATIONS.
OUR GOVERNMENT CALLS THEM“
WRONGFUL DETAINEES,” AND THERE
ARE CURRENTLY MORE THAN 40 OF
154
00:17:09,928 --> 00:17:19,037
THEM.
THIS FALL SAW A RARE MOMENT OF
SUCCESS, THE RELEASE OF A
37-YEAR-OLD JOURNALIST NAMED
155
00:17:19,104 --> 00:17:27,045
DANNY FENSTER, A DETROIT NATIVE
WHO'D BEEN LOCKED AWAY FOR
NEARLY SIX MONTHS IN A SMALL,
ALWAYS-LIT CELL IN A PRISON IN
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00:17:27,112 --> 00:17:31,450
MYANMAR, FORMERLY CALLED BURMA.
>> Danny Fenster: HEY!
>> Stahl: DANNY FENSTER'S
REUNION WITH HIS FAMILY IN
157
00:17:31,517 --> 00:17:35,554
NOVEMBER...
>> Danny Fenster: THANK YOU FOR
EVERYTHING.
>> Stahl: IS THE MOMENT EVERY
158
00:17:35,621 --> 00:17:41,326
HOSTAGE AND DETAINEE FAMILY
DREAMS OF.
>> HOW'S IT FEEL TO BE BACK?
>> Danny Fenster: IT FEELS
159
00:17:41,393 --> 00:17:47,633
INCREDIBLE.
>> Stahl: DANNY FENSTER HAD
MOVED TO MYANMAR IN 2019 AND
WORKED AS AN EDITOR FOR SEVERAL
160
00:17:47,699 --> 00:17:58,477
PUBLICATIONS.
HE AND HIS WIFE, A BRAZILIAN
DIPLOMAT NAMED JULIANA, WATCHED
IN DISMAY AS, A YEAR AGO THIS
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00:17:58,544 --> 00:18:04,983
MONTH, A MILITARY JUNTA OUSTED
THE ELECTED GOVERNMENT OF AUNG
SAN SUU KYI, WHICH BROUGHT
THRONGS OF PEACEFUL PROTESTORS
162
00:18:05,050 --> 00:18:13,192
INTO THE STREETS.
WITHIN WEEKS, THOUGH, THE
MILITARY REGIME ORDERED A
VIOLENT CRACKDOWN THAT DREW
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00:18:13,258 --> 00:18:21,934
WORLDWIDE CONDEMNATION.
LATE LAST SPRING, DANNY HAD A
FLIGHT HOME TO VISIT HIS
PARENTS, BUT AS HE WAS ABOUT TO
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00:18:22,000 --> 00:18:26,638
BOARD THE PLANE, A GROUP OF
POLICEMEN SHOWED UP AND CALLED
OUT HIS NAME.
>> Danny Fenster: AND I JUST
165
00:18:26,705 --> 00:18:32,678
LOOKED UP, LIKE, “WHAT?”
AND I SAID, “YEAH, THAT'S ME.”
THEY SAID, “WE HAVE QUESTIONS
FOR A CRIMINAL INVESTIGATION.”
166
00:18:32,744 --> 00:18:37,216
>> Stahl: DID THEY ALLOW YOU TO
MAKE ANY PHONE CALLS?
NO--
>> Danny Fenster: NO.
167
00:18:37,282 --> 00:18:43,055
I GOT A COUPLE TEXT MESSAGES OFF
TO JULIANA SAYING, “CALL THE
AMERICAN EMBASSY.
I'M BEING DETAINED.”
168
00:18:43,121 --> 00:18:49,027
>> Stahl: WERE YOU HANDCUFFED?
>> Danny Fenster: HANDCUFFED AND
BLINDFOLDED.
>> Bryan Fenster: I HAD A VERY
169
00:18:49,094 --> 00:18:55,100
LONG TEXT MESSAGE FROM HIS WIFE,
JULIANA.
>> Stahl: BRYAN FENSTER, DANNY'S
OLDER BROTHER BACK HOME IN
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00:18:55,167 --> 00:19:01,840
DETROIT, WAS THE FIRST IN THE
FAMILY TO LEARN THAT DANNY WAS
IN PRISON, AND THE FAMILY
IMMEDIATELY MOBILIZED.
171
00:19:01,907 --> 00:19:07,412
>> Rose Fenster: PLEASE, I BEG
YOU, WE BEG YOU, BRING DANNY
HOME.
>> Stahl: THEY LAUNCHED A “BRING
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00:19:07,479 --> 00:19:15,187
DANNY HOME” CAMPAIGN, INCLUDING
SUPPORTERS WORLDWIDE SKETCHING
HIS PICTURE.
DANNY WAS EVENTUALLY CHARGED
173
00:19:15,254 --> 00:19:23,195
WITH INCITEMENT AND WRONGFUL
ASSOCIATION BASED ON HIS WORK
FOR A BANNED PUBLICATION THAT
HAD BEEN CRITICAL OF THE
174
00:19:23,262 --> 00:19:31,169
MILITARY, EVEN THOUGH HE HADN'T
WORKED THERE FOR TEN MONTHS.
HE SAYS HE DESPERATELY WANTED TO
LET HIS FAMILY KNOW HE WASN'T
175
00:19:31,236 --> 00:19:37,776
BEING TORTURED, BUT FOR WEEKS HE
WASN'T ALLOWED ANY COMMUNICATION
AT ALL OUTSIDE THE PRISON.
>> Danny Fenster: I REMEMBER
176
00:19:37,843 --> 00:19:43,482
JUST STARING AT THE WALL,
THINKING SORT OF FIGURATIVELY,
YOU KNOW, "I JUST-- WHEN IS THAT
TANK GOING TO BUST THROUGH THE
177
00:19:43,549 --> 00:19:47,419
WALL, YOU KNOW, AND GET ME OUT
OF HERE?"
>> Stahl: YOU REALLY THOUGHT AT
ONE POINT YOU WERE GOING TO BE
178
00:19:47,486 --> 00:19:53,725
RESCUED?
>> Danny Fenster: NO.
BUT I WAS REALLY HOPING.
>> Ned Price: RELEASE DANNY
179
00:19:53,792 --> 00:19:58,397
IMMEDIATELY.
>> Stahl: THE STATE DEPARTMENT
MADE REPEATED APPEALS.
>> Price: WE REMAIN DEEPLY
180
00:19:58,463 --> 00:20:05,737
CONCERNED OVER THE CONTINUED
DETENTION OF DANNY FENSTER.
>> Stahl: BUT THE U.S.
GOVERNMENT HASN'T RECOGNIZED THE
181
00:20:05,804 --> 00:20:11,276
LEGITIMACY OF THE JUNTA, SO EVEN
GETTING INFORMATION ABOUT DANNY
WAS DIFFICULT.
AFTER A MONTH, HE WAS FINALLY
182
00:20:11,343 --> 00:20:16,381
ALLOWED PERIODIC PHONE CALLS
WITH HIS FAMILY.
>> Bryan Fenster: IT WAS HARD.
I MEAN, THERE WERE MANY CALLS WE
183
00:20:16,448 --> 00:20:22,120
HAD WITH HIM WHERE HE WAS IN
TEARS.
YOU'RE TRYING TO FIND THE WORDS
FOR HIM, YOU KNOW, AFTER ONE
184
00:20:22,187 --> 00:20:29,561
MONTH, TWO MONTHS, THREE MONTHS,
FOUR MONTHS.
>> Stahl: BACK IN WASHINGTON,
DANNY'S CASE HAD FALLEN UNDER
185
00:20:29,628 --> 00:20:35,167
THE MANDATE OF ROGER CARSTENS,
ONE OF THE FEW STATE DEPARTMENT
OFFICIALS HELD OVER FROM THE
TRUMP ADMINISTRATION.
186
00:20:35,233 --> 00:20:43,175
HE'S A MAN WITH A TOUGH JOB AND
AN ODD-SOUNDING TITLE.
YOU'RE CALLED SPEHA.
WHAT DOES THAT MEAN, SPEHA?
187
00:20:43,241 --> 00:20:48,914
>> Roger Carstens: IT'S SPECIAL
PRESIDENTIAL ENVOY FOR HOSTAGE
AFFAIRS.
SO, EVERYONE TRUNCATES IT INTO
188
00:20:48,981 --> 00:20:58,590
SPEHA.
>> Stahl: THE SPEHA OFFICE WAS
CREATED IN 2015, AFTER AN
INTERNAL REVIEW OF U.S. HOSTAGE
189
00:20:58,657 --> 00:21:06,965
POLICY FOLLOWING THE TRAGIC
DEATHS OF AMERICAN JOURNALISTS
AND AID WORKERS HELD CAPTIVE BY
ISIS AND COMPLAINTS FROM HOSTAGE
190
00:21:07,032 --> 00:21:13,372
FAMILIES THAT THE GOVERNMENT
HADN'T BEEN PROACTIVE ENOUGH.
BUT IN THE YEARS SINCE, THE
MAKEUP OF ROGER CARSTEN'S CASES
191
00:21:13,438 --> 00:21:23,148
HAS CHANGED.
I'M KIND OF SURPRISED THAT THERE
ARE MANY MORE-- MANY MORE
HOSTAGES BEING HELD BY
192
00:21:23,215 --> 00:21:27,285
GOVERNMENTS THAN BY TERRORISTS.
>> Carstens: I KNOW.
THAT IS SURPRISING, ISN'T IT?
THE-- THE MAJORITY OF OUR CASES
193
00:21:27,352 --> 00:21:36,962
ARE ACTUALLY WHAT WE CALL
WRONGFUL DETENTIONS.
IT'S WHEN A NATION-STATE
ACTUALLY IS DETAINING AMERICAN
194
00:21:37,029 --> 00:21:40,432
-- ESSENTIALLY UNJUSTLY.
>> Stahl: THAT GOVERNMENT WANTS
SOMETHING IN RETURN FOR OUR
CITIZEN.
195
00:21:40,499 --> 00:21:43,402
>> Carstens: THEY WANT TO USE
THAT PERSON FOR POLITICAL
LEVERAGE.
THEY WANT TO USE THEM AS A
196
00:21:43,468 --> 00:21:47,339
BARGAINING CHIP.
>> Jason Rezaian: IT'S SOMETHING
THAT PEOPLE DON'T KNOW ABOUT,
THEY DON'T THINK ABOUT VERY
197
00:21:47,406 --> 00:21:55,380
MUCH.
>> Stahl: "WASHINGTON POST"
REPORTER AND IRANIAN AMERICAN,
JASON REZAIAN WAS A WRONGFUL
198
00:21:55,447 --> 00:22:03,321
DETAINEE HIMSELF, IMPRISONED FOR
A YEAR AND A HALF IN IRAN, WHERE
HE'D BEEN LIVING AS THE PAPER'S
BUREAU CHIEF.
199
00:22:03,388 --> 00:22:11,563
HE WAS FREED AS PART OF A
PRISONER SWAP IN 2016, AND HAS
BEEN PUSHING EVER SINCE FOR THE
U.S. GOVERNMENT TO PRIORITIZE
200
00:22:11,630 --> 00:22:17,135
THE CASES OF THE MORE THAN
40 CURRENT WRONGFUL DETAINEES.
>> Rezaian: WE'RE NOT DOING
ENOUGH FOR THESE PEOPLE, AND
201
00:22:17,202 --> 00:22:23,041
WE'RE NOT DOING IT QUICKLY
ENOUGH.
>> Stahl: WHAT COUNTRIES AROUND
THE WORLD ARE HOLDING AMERICANS
202
00:22:23,108 --> 00:22:31,316
RIGHT NOW?
>> Rezaian: IRAN, WHICH IS SORT
OF THE PERENNIAL HOSTAGE-TAKER;
CHINA, WHO HAS MORE THAN ANYBODY
203
00:22:31,383 --> 00:22:37,422
ELSE; RUSSIA; VENEZUELA.
>> Stahl: DOES OUR GOVERNMENT
HAVE A STERN POLICY AGAINST QUID
PRO QUOS?
204
00:22:37,489 --> 00:22:43,195
>> Carstens: THAT'S A HARD
QUESTION TO ANSWER, AND HERE'S
WHY: THERE ARE THINGS THAT, TO
GIVE IN, WOULD ACTUALLY EITHER
205
00:22:43,261 --> 00:22:49,434
PROVIDE AN INCENTIVE OR A
BENEFIT TO THE HOSTAGE TAKER,
AND SO, MY JOB IS TO START
BECOMING CREATIVE.
206
00:22:49,501 --> 00:22:57,476
WHAT ELSE CAN WE POSSIBLY DO TO
SOLVE THIS PROBLEM WITHOUT
GIVING A DIRECT CONCESSION?
>> Stahl: PRISONER SWAPS: TAKING
207
00:22:57,542 --> 00:23:03,782
THE INNOCENT AMERICAN AND
SWAPPING HIM FOR A GUILTY
CRIMINAL, WE'VE DONE THAT.
>> Carstens: IF THERE'S A WAY I
208
00:23:03,849 --> 00:23:11,223
CAN GET SOMEONE OUT THAT DOESN'T
INVOLVE A SWAP, MUCH BETTER.
>> Stahl: BUT IN DANNY FENSTER'S
CASE, THE MYANMAR GOVERNMENT
209
00:23:11,289 --> 00:23:15,327
WASN'T ASKING FOR ANY POLICY
CONCESSIONS OR PRISONER SWAPS.
>> Bill Richardson: IT DIDN'T
LOOK LIKE HE WAS GOING TO GET
210
00:23:15,393 --> 00:23:22,100
OUT.
>> Stahl: ENTER FORMER
CONGRESSMAN, U.N. AMBASSADOR AND
NEW MEXICO GOVERNOR BILL
211
00:23:22,167 --> 00:23:31,042
RICHARDSON, WHO ESTABLISHED A
FOUNDATION THAT FACILITATES THE
DELIVERY OF HUMANITARIAN AID AND
ENGAGES IN HOSTAGE NEGOTIATING,
212
00:23:31,109 --> 00:23:37,482
HIS LONG-TIME, SOMETIMES
CONTROVERSIAL, SPECIALTY.
>> HOW'RE YOU FEELING?
>> Stahl: HE HAD A LONG HISTORY
213
00:23:37,549 --> 00:23:43,622
WITH MYANMAR, AND WAS CONCERNED
ABOUT A LOCAL FORMER EMPLOYEE OF
HIS FOUNDATION WHO HAD ALSO BEEN
ARRESTED.
214
00:23:43,688 --> 00:23:53,431
HE SECURED AN INVITATION FROM
THE MILITARY REGIME TO COME TO
DISCUSS HUMANITARIAN ASSISTANCE
AND COVID VACCINES, AND TOLD THE
215
00:23:53,498 --> 00:23:59,471
STATE DEPARTMENT HE WANTED TO
WORK ON THE FENSTER CASE TOO,
BUT HE GOT PUSHBACK.
>> Richardson: THEY ASKED ME NOT
216
00:23:59,538 --> 00:24:03,575
TO RAISE DANNY FENSTER.
>> Stahl: DID YOU SAY, “WHY
SHOULDN'T I RAISE THIS?”
>> Richardson: YEAH, I SAID,
217
00:24:03,642 --> 00:24:11,449
"LOOK, THIS IS WHAT I DO."
WHAT-- SO I SAID, "ALL RIGHT,
LOOK, I'M GOING TO GO.”
>> Stahl: THERE WAS SOME TENSION
218
00:24:11,516 --> 00:24:17,756
BETWEEN GOVERNOR RICHARDSON AND
THE STATE DEPARTMENT.
>> Carstens: THE BOTTOM LINE IS
THAT I HAD DISCUSSIONS ON A FEW
219
00:24:17,823 --> 00:24:22,627
OCCASIONS WHERE I SAID, "WE HAVE
A CURRENT LINE OF EFFORT.
I'M FEELING PRETTY GOOD ABOUT
THIS.
220
00:24:22,694 --> 00:24:31,269
CAN WE HOLD OFF A LITTLE BIT?"
>> Stahl: RICHARDSON HELD OFF
BRIEFLY, BUT THEN FLEW TO
MYANMAR THIS PAST NOVEMBER, AND
221
00:24:31,336 --> 00:24:37,976
PARTICIPATED IN TWO DAYS OF
HUMANITARIAN AID MEETINGS AT THE
PRESIDENTIAL PALACE WITH THE
ISOLATED MILITARY REGIME,
222
00:24:38,043 --> 00:24:47,452
INCLUDING THE COMMANDER IN
CHIEF, A MAN CONSIDERED
RESPONSIBLE AT THE TIME FOR MORE
THAN 1,200 CIVILIAN DEATHS.
223
00:24:47,519 --> 00:24:58,964
IT WAS A P.R. COUP FOR THE
JUNTA, WHICH SPLASHED PHOTOS OF
THE MEETING FAR AND WIDE.
>> Richardson: WHEN I THINK WE
224
00:24:59,030 --> 00:25:04,069
CONVINCED THEM OF OUR SINCERITY,
THEN I SAID, "BY THE WAY, YOU'VE
GOT-- I WANT TWO THINGS.
YOU HAVE AN ACTIVIST BURMESE
225
00:25:04,135 --> 00:25:09,975
WOMAN THAT WORKED FOR ME.
I WANT YOU TO RELEASE HER."
THE NEXT DAY, SHE'D BEEN
RELEASED.
226
00:25:10,041 --> 00:25:18,683
>> Stahl: JUST LIKE THAT?
>> Richardson: JUST LIKE THAT.
THEN I DECIDED, I'M ON A ROLL.
"BY THE WAY, THERE'S AN AMERICAN
227
00:25:18,750 --> 00:25:25,223
JOURNALIST NAMED DANNY FENSTER.
AND YOU SHOULD RELEASE HIM.
IT'D BE THE RIGHT THING.
THE AMERICAN PEOPLE ARE GOING TO
228
00:25:25,290 --> 00:25:31,463
LIKE THIS.
YOUR RECORD WITH THE U.S.
GOVERNMENT RIGHT NOW IS NOT VERY
GOOD.
229
00:25:31,529 --> 00:25:37,535
SO IT-- IT'D MAKE YOU LOOK GOOD.
HUMANITARIAN GESTURE."
>> Stahl: BUT YOU WERE DEFYING
THE STATE DEPARTMENT.
230
00:25:37,602 --> 00:25:43,975
>> Richardson: I WASN'T DEFYING.
I JUST SAW AN OPPORTUNITY AND I
TOOK IT.
>> Stahl: RICHARDSON SAYS THE
231
00:25:44,042 --> 00:25:51,516
COMMANDER PRIVATELY TOLD HIM
HE'D RELEASE FENSTER, BUT NOT
YET.
SO, HE LEFT MYANMAR
232
00:25:51,583 --> 00:25:58,290
EMPTY-HANDED, SLAMMED FOR HAVING
GIVEN A PARIAH REGIME
LEGITIMACY, AND LOOKING LIKE HE
MIGHT HAVE MADE THINGS WORSE FOR
233
00:25:58,356 --> 00:26:03,595
DANNY FENSTER, WHO WAS SENTENCED
A WEEK LATER.
>> Danny Fenster: “YOU'VE BEEN
CONVICTED ON EVERY COUNT AND
234
00:26:03,662 --> 00:26:08,400
SENTENCED TO 11 YEARS.”
>> Stahl: 11 YEARS?
>> Danny Fenster: YEAH.
IT WAS, LIKE-- DESPAIR, YOU
235
00:26:08,466 --> 00:26:13,705
KNOW?
>> Stahl: HELPLESS.
>> Danny Fenster: YEAH,
HELPLESS.
236
00:26:13,772 --> 00:26:21,813
>> Stahl: THERE WAS CRITICISM.
THE FEELING THAT YOU HAD BOTCHED
THIS MEETING AND IT LED TO DANNY
FENSTER GETTING THIS 11-YEAR
237
00:26:21,880 --> 00:26:27,585
SENTENCE.
>> Richardson: YOU KNOW,
FAMILIES GET SO EMOTIONAL.
THEY GO THROUGH UPS AND DOWNS.
238
00:26:27,652 --> 00:26:33,992
BUT I KNEW IF THE COMMANDER KEPT
HIS WORD, AND I THOUGHT HE
WOULD, THAT THIS WOULD BE
FORGOTTEN.
239
00:26:34,059 --> 00:26:37,696
>> Stahl: GO AWAY, YEAH.
>> Richardson: AND I GOT HIM
OUT.
HE'S OUT.
240
00:26:37,762 --> 00:26:47,172
AND WE DID IT.
>> Stahl: SURE ENOUGH, JUST DAYS
AFTER THE SENTENCING, RICHARDSON
WAS QUIETLY SUMMONED BACK TO
241
00:26:47,238 --> 00:26:54,713
MYANMAR, AND DANNY WAS
UNEXPECTEDLY TAKEN OUT OF HIS
CELL, PUT IN A VAN, AND WITHOUT
KNOWING WHERE HE WAS GOING,
242
00:26:54,779 --> 00:26:59,584
DRIVEN TO THE AIRPORT.
>> Danny Fenster: I JUST SEE A
BUNCH OF WHITE GUYS IN SUITS.
I DIDN'T KNOW WHO WAS WHO.
243
00:26:59,651 --> 00:27:07,425
>> Richardson: AND THERE WAS
DANNY WALKING TOWARDS ME.
>> Danny Fenster: AND HE SAID,
"I'M HERE TO TAKE YOU HOME.”
244
00:27:07,492 --> 00:27:12,297
I JUST COULDN'T STOP SMILING.
I WAS SMILING SO MUCH.
I WAS SO HAPPY.
THE SUN WAS ON MY FACE, I COULD
245
00:27:12,364 --> 00:27:18,937
FEEL THE SUN.
YEAH, IT WAS AMAZING.
>> Carstens: I'D LIKE TO START
WITH SAYING THANK YOU TO
246
00:27:19,004 --> 00:27:23,641
GOVERNOR RICHARDSON FOR SECURING
THE RELEASE OF DANNY FENSTER.
>> Stahl: IF THERE WAS ANY
LINGERING ANGER OVER GOVERNOR
247
00:27:23,708 --> 00:27:31,549
RICHARDSON'S TRIP, IT WAS NOT ON
DISPLAY AT THE PRESS CONFERENCE
WHEN DANNY LANDED ON U.S. SOIL.
>> Carstens: I JUST CAN'T GET
248
00:27:31,616 --> 00:27:37,288
UPSET WHEN THE GOVERNOR ACTUALLY
BRINGS HIM HOME.
WE HAVE NO PRIDE OF AUTHORSHIP.
WHOEVER CAN COME UP WITH A PLAN
249
00:27:37,355 --> 00:27:43,628
AND GET SOMEONE OUT, WE'RE DOWN
FOR THE WIN.
>> Stahl: CARSTENS SAYS HE'S
HOPEFUL ABOUT SOME OF THE OTHER
250
00:27:43,695 --> 00:27:51,636
DETAINEE CASES.
RECENTLY HE TRAVELED TO
VENEZUELA TO MEET NINE AMERICANS
IMPRISONED THERE.
251
00:27:51,703 --> 00:28:00,178
AND IN ONGOING NEGOTIATIONS TO
REVIVE THE IRAN NUCLEAR DEAL,
THE U.S. ENVOY HAS SAID IT WOULD
BE “VERY HARD FOR US TO IMAGINE
252
00:28:00,245 --> 00:28:07,719
GETTING BACK INTO THE NUCLEAR
DEAL WHILE FOUR INNOCENT
AMERICANS ARE BEING HELD
HOSTAGE.”
253
00:28:07,786 --> 00:28:13,224
YET JASON REZAIAN SAYS IT'S
STILL NOT ENOUGH.
WHEN YOU SAY WE SHOULD
PRIORITIZE GETTING THESE PEOPLE
254
00:28:13,291 --> 00:28:19,631
OUT--
>> Rezaian: YEAH.
>> Stahl: THE IMPLICATION IS
THAT YOU'RE SAYING LET'S MAKE A
255
00:28:19,697 --> 00:28:23,701
DEAL; LET'S DO A SWAP.
AND THEN YOU'RE RIGHT BACK TO
THE ISSUE OF INCENTIVIZING THIS
THING.
256
00:28:23,768 --> 00:28:28,406
>> Rezaian: LOOK: ULTIMATELY,
WHEN AMERICANS COME HOME, WHEN
BRITS COME HOME, WHEN FRENCH
PEOPLE COME HOME, THERE ARE SOME
257
00:28:28,473 --> 00:28:35,246
CONCESSIONS.
THE ISSUE IS NOT WHETHER OR NOT
TO GIVE A CONCESSION.
THE ISSUE IS HOW DO WE MAKE IT
258
00:28:35,313 --> 00:28:39,751
DIFFICULT ON THE BACK END.
>> Stahl: SO, YOU'RE SAYING MAKE
THE DEAL HERE AND THEN PUNISH
THEM LATER--
259
00:28:39,818 --> 00:28:45,290
>> Rezaian: BRING THEM HOME
HOWEVER YOU NEED TO DO IT--
>> Stahl: MONEY, SWAPS,
WHATEVER?
260
00:28:45,356 --> 00:28:51,729
>> Rezaian: YOU KNOW WHAT, CUT
THROUGH ALL THE B.S. AND JUST
BRING PEOPLE HOME.
>> Stahl: CRITICS SAY THAT EVEN
261
00:28:51,796 --> 00:28:57,602
THOUGH YOU WORK VERY HARD, YOU
KEEP THE FAMILIES APPRISED OF
WHAT'S GOING ON THAT YOU'RE NOT
DOING A GOOD JOB.
262
00:28:57,669 --> 00:29:02,373
THERE ARE STILL 40 PEOPLE BEING
HELD.
>> Carstens: WHEN I GO TO BED
EVERY NIGHT, I FEEL THE WEIGHT
263
00:29:02,440 --> 00:29:09,681
OF NOT HAVING BROUGHT HOME
BETWEEN 40 AND 50 AMERICANS, SO
I DON'T GO TO BED USUALLY
FEELING GOOD.
264
00:29:09,747 --> 00:29:15,653
I USUALLY WAKE UP WITH ENERGY,
CAN'T WAIT TO GET TO THE OFFICE
AND GET BACK AFTER IT.
BUT THIS IS A BUSINESS OF ONES
265
00:29:15,720 --> 00:29:23,728
AND ZEROES IN COMPUTER LANGUAGE.
SOMEONE COMES HOME, STEPS ON A
TARMAC IN AMERICA, FALLS INTO
THE ARMS OF THEIR LOVED ONES.
266
00:29:23,795 --> 00:29:27,765
YOU'VE GOT A VICTORY THERE.
BUT UNLESS THAT'S HAPPENING,
YOU'RE LOSING.
>> Danny Fenster: HELLO!
267
00:29:27,832 --> 00:29:38,009
>> Stahl: WE WANT TO LEAVE YOU..
>> MY BEAUTIFUL GRANDSON!
>> Stahl: WITH A PRETTY SPECIAL
FALLING INTO THE ARMS OF A LOVED
268
00:29:38,076 --> 00:29:47,785
ONE.
>> OH MY GOD!
>> Stahl: DANNY'S REUNION WITH
HIS 95-YEAR-OLD GRANDMOTHER, A
269
00:29:47,852 --> 00:29:51,856
SURVIVOR OF THE HOLOCAUST.
>> I'M HAPPY YOU'RE IN AMERICA.
GOD BLESS YOU.
270
00:30:00,765 --> 00:30:02,901
( TICKING )
271
00:30:04,502 --> 00:30:11,442
>> Wertheim: NEWSPAPER INDUSTRY
IN STATE OF DECLINE: NOT EXACTLY
A STOP-THE-PRESSES HEADLINE.
FOR TWO DECADES NOW, OWING
272
00:30:11,509 --> 00:30:16,748
LARGELY TO THE LOSS OF
ADVERTISING REVENUE TO FACEBOOK
AND GOOGLE, FEWER AND FEWER
AMERICANS GET THEIR NEWS, COMICS
273
00:30:16,814 --> 00:30:21,085
AND SPORTS FROM ALL THOSE
GAZETTES AND TRIBUNES AND
JOURNALS.
BUT THAT DOESN'T TELL THE WHOLE
274
00:30:21,152 --> 00:30:27,325
STORY.
THERE'S AN ADDITIONAL THREAT:
HEDGE FUNDS AND OTHER FINANCIAL
FIRMS THAT NOW OWN NEARLY A
275
00:30:27,392 --> 00:30:35,600
THIRD OF THE DAILY PAPERS IN
AMERICA.
AND THESE NEW OWNERS ARE OFTEN
COMMITTED NOT TO HEADLINES AND
276
00:30:35,667 --> 00:30:40,672
DEADLINES, BUT TO BOTTOM LINES.
ONE FUND IN PARTICULAR HAS BEEN
CALLED BY SOME IN THE INDUSTRY“"
VULTURE,” BLEEDING NEWSPAPERS
277
00:30:40,738 --> 00:30:47,545
DRY.
IT ALL PROMPTS THE QUESTION: AS
LOCAL NEWSROOMS AND LOCAL NEWS
COVERAGE SHRIVEL UP, TO WHAT
278
00:30:47,612 --> 00:30:56,688
EXTENT DOES DEMOCRACY SHRINK
WITH IT?
BEHIND THE MARCHING BAND AND
BATON TWIRLERS, AT THE ANNUAL
279
00:30:56,754 --> 00:31:03,895
4th OF JULY PARADE IN POTTSTOWN,
PENNSYLVANIA, YOU'LL FIND A
ONE-MAN BAND: REPORTER EVAN
BRANDT--
280
00:31:03,962 --> 00:31:10,635
SNAPPING PHOTOS, TAKING NOTES,
AND GATHERING QUOTES.
>> Evan Brandt: THE PAPER COMES
OUT TOMORROW.
281
00:31:10,702 --> 00:31:14,706
EVERYDAY.
TELL ME ALL ABOUT WHAT YOU'RE
DOING HERE.
>> WE'RE JUST LOOKING FORWARD TO
282
00:31:14,772 --> 00:31:20,745
A GREAT 4th OF JULY.
>> Wertheim: FOR THE LAST 24
YEARS, HE'S CHRONICLED THIS
COMMUNITY OF 23,000 FOR THE
283
00:31:20,812 --> 00:31:28,753
LOCAL NEWSPAPER, "THE MERCURY,"
WHICH AT ONE TIME HAD DOZENS OF
REPORTERS.
NOW, BRANDT IS, LITERALLY THE
284
00:31:28,820 --> 00:31:36,761
LAST REPORTER STANDING IN
POTTSTOWN.
WHEN A COMMUNITY LIKE THIS LOSES
THEIR LOCAL REPORTERS, WHAT ELSE
285
00:31:36,828 --> 00:31:44,369
ARE THEY LOSING?
>> BRANDT: IT REMINDS US ALL
ABOUT SHARED EXPERIENCES.
YOU KNOW WHO DIED, YOU KNOW WHO
286
00:31:44,435 --> 00:31:49,974
GRADUATED FROM HIGH SCHOOL.
YOU KNOW WHOSE KID HAD A GREAT
GAME.
YOU KNOW THOSE ARE ALL IMPORTANT
287
00:31:50,041 --> 00:31:55,880
ELEMENTS ABOUT HOLDING PEOPLE
TOGETHER.
>> Wertheim: YOU'RE DESCRIBING
THE SOUL OF A COMMUNITY?
288
00:31:55,947 --> 00:32:00,752
>> Brandt: SURE.
>> Wertheim: BRANDT TOOK US TO
THE OLD HEADQUARTERS OF THE
MERCURY.
289
00:32:00,818 --> 00:32:08,926
PUNCHING ABOVE ITS WEIGHT, "THE
MERCURY" WON A PULITZER PRIZE IN
1979 AND ANOTHER IN 1990.
NOW, IT LOOKS LIKE THIS.
290
00:32:08,993 --> 00:32:16,367
>> Brandt: MY DESK WAS RIGHT
ABOUT HERE.
AND THE EDITOR SAT UP THERE.
THE SPORTS GUYS WERE ALONG HERE.
291
00:32:16,434 --> 00:32:20,905
THE PHOTOGRAPHERS WERE IN THE
BACK.
ANYONE COULD WALK IN THE FRONT
DOOR AND SAY, "I NEED TO TALK TO
292
00:32:20,972 --> 00:32:24,909
A REPORTER.
MY SEWER'S BACKING UP AND THE
TOWNSHIP ISN'T DOING ANYTHING
ABOUT IT.
293
00:32:24,976 --> 00:32:32,083
CAN YOU DO SOMETHING?
>> Wertheim: BEHOLD THE NEW
"MERCURY" HEADQUARTERS.
WE'RE GOING UP TO THE "MERCURY"
294
00:32:32,150 --> 00:32:36,821
NEWSROOM.
BRANDT'S TURNED HIS ATTIC INTO A
COMMAND CENTER.
>> Brandt: THIS IS WHERE THE
295
00:32:36,888 --> 00:32:43,361
MAGIC HAPPENS.
IT'S HERE THAT HE SCRAMBLES TO
COVER POTTSTOWN, 20 SURROUNDING
TOWNS, AND NINE DIFFERENT SCHOOL
296
00:32:43,428 --> 00:32:50,968
DISTRICTS.
>> THE MOTION IS CARRIED.
>> Wertheim: OVERWORKED AND
OVERWHELMED, BRANDT HAS SEEN HIS
297
00:32:51,035 --> 00:32:56,808
INDUSTRY BATTERED BY ALL SORT OF
FORCES-- DISAPPEARING CLASSIFIED
ADS; PEOPLE GETTING NEWS FOR
FREE ONLINE.
298
00:32:56,874 --> 00:33:03,014
BUT HE SAYS THE WORST CULPRIT IS
THE HEDGE FUND, ALDEN GLOBAL
CAPITAL, WHICH BOUGHT "THE
MERCURY" IN 2011 AND HAS SINCE
299
00:33:03,081 --> 00:33:11,956
SOLD THE PAPER'S BUILDING AND
SLASHED NEWSROOM STAFF BY ABOUT
70%, SEVERE EVEN BY THE
STANDARDS OF THE NEWSPAPER
300
00:33:12,023 --> 00:33:19,931
SECTOR THAT HAS SEEN AN
ASTOUNDING 57% JOB LOSS SINCE
2008.
IN 2017, AFTER ANOTHER ROUND OF
301
00:33:19,997 --> 00:33:27,038
LAYOFFS, BRANDT SAYS HE FELT
ANGRY, AND WANTED ANSWERS AND
ACCOUNTABILITY, SO HE PAID A
VISIT TO THE HAMPTONS SUMMER
302
00:33:27,105 --> 00:33:32,643
HOME OF HEATH FREEMAN, THE
41-YEAR-OLD PRESIDENT OF ALDEN
GLOBAL CAPITAL, AND KNOCKED ON
THE DOOR.
303
00:33:32,710 --> 00:33:39,016
WHAT'D YOU WANT TO SAY TO HIM?
>> Brandt: WHAT I SETTLED ON IS,
"WHAT VALUE DO YOU PLACE ON
LOCAL NEWS?”
304
00:33:39,083 --> 00:33:46,290
AND I'M NOT TALKING ABOUT MONE“"
WHAT VALUE DO YOU PLACE ON IT?"
>> Wertheim: BRANDT RECALLS THAT
A WOMAN LET HIM IN; BEHIND HER,
305
00:33:46,357 --> 00:33:50,962
HE CAUGHT A GLIMPSE OF FREEMAN,
WHO WALKED AWAY.
YOU NEVER GOT TO ASK HIM THAT
QUESTION.
306
00:33:51,028 --> 00:33:56,868
>> Brandt: I DID NOT.
>> Wertheim: THIS SECRETIVE
HEDGE FUND, THEIR WEBSITE SHOWS
THIS SINGLE PHOTO, STARTED
307
00:33:56,934 --> 00:34:04,942
BUILDING ITS PRINT EMPIRE OVER
THE LAST DECADE AND NOW OWNS
MORE THAN 200 NEWSPAPERS, MAKING
IT THE COUNTRY'S SECOND LARGEST
308
00:34:05,009 --> 00:34:14,919
NEWSPAPER OWNER BEHIND GANNETT.
ALDEN'S RAPID TAKEOVER AND CUTS
HAVE ALARMED U.S. LAWMAKERS.
IN 2019, 21 SENATORS WROTE TO
309
00:34:14,986 --> 00:34:20,158
HEATH FREEMAN ASKING HIM TO
ABANDON HIS “NEWSPAPER-KILLING
BUSINESS MODEL.”
FREEMAN, THOUGH, HAS DOUBLED
310
00:34:20,224 --> 00:34:25,863
DOWN.
LAST YEAR, ALDEN MADE A PLAY FOR
TRIBUNE PUBLISHING, HOME TO
HISTORIC PAPERS LIKE "THE
311
00:34:25,930 --> 00:34:31,035
BALTIMORE SUN" AND "THE CHICAGO
TRIBUNE."
>> Gary Marx: THIS IS AN ATTACK
ON OUR DEMOCRACY.
312
00:34:31,102 --> 00:34:38,743
>> Wertheim: GARY MARX AND DAVID
JACKSON SPENT 30 YEARS AS
INVESTIGATIVE REPORTERS AT "THE
CHICAGO TRIBUNE," A PAPER THAT
313
00:34:38,810 --> 00:34:47,952
HAS WON 27 PULITZER PRIZES.
>> Marx: LOCAL AND REGIONAL
NEWSPAPERS ARE SO IMPORTANT TO
OUR COMMUNITIES, TO HOLDING OUR
314
00:34:48,019 --> 00:34:52,957
LEADERS ACCOUNTABLE.
THEY'RE NOT JUST GOING AFTER
SOME BUSINESS THAT IS TRYING TO
MAKE MONEY.
315
00:34:53,024 --> 00:35:02,366
>> Wertheim: THEY ADMIT THE
TRIBUNE HAD BEEN CRIPPLED FOR
YEARS BY BAD MANAGEMENT; BUT
AFTER SEEING ALDEN BUY THE
316
00:35:02,433 --> 00:35:06,070
"DENVER POST" AND THEN GUT STAFF
BY 70%, THE JOURNALISTS WERE
WORRIED THE HEDGE FUND WOULD DO
IRREVERSIBLE DAMAGE.
317
00:35:06,137 --> 00:35:11,709
SO, WHAT'D YOU DO?
>> Marx: WE FOUGHT BACK.
THAT'S WHAT WE DID.
DAVE AND I JUST DECIDED THAT WE
318
00:35:11,776 --> 00:35:20,718
ARE GOING TO THROW EVERYTHING WE
POSSIBLY CAN, USE ALL OUR
INVESTIGATIVE AND REPORTORIAL
SKILLS TO SAVE THIS ORGANIZATION
319
00:35:20,785 --> 00:35:25,389
THAT IS SO IMPORTANT WE FELT TO
THE FUTURE OF THE CITY WE LOVE,
CHICAGO.
>> Wertheim: SO, THIS
320
00:35:25,456 --> 00:35:32,296
INVESTIGATIVE TEAM, ACCUSTOMED
TO EXPOSING CORRUPTION AND
INJUSTICE, ACTING AS WATCHDOGS
ON LOCAL GOVERNMENT, THEY TURNED
321
00:35:32,363 --> 00:35:37,401
THEIR ATTENTION TO THEIR
POTENTIAL NEW OWNERS.
YOU'VE SAID WHEN ALDEN CAPITAL
ARRIVED, IT WAS AN EXISTENTIAL
322
00:35:37,468 --> 00:35:44,275
THREAT.
>> David Jackson: YEAH.
>> Wertheim: WHY IS THIS FIRM
PARTICULARLY NEFARIOUS?
323
00:35:44,342 --> 00:35:51,048
>> Jackson: WELL, ALDEN HAS SORT
OF A PLAYBOOK OF GOING INTO A
DISTRESSED NEWSROOM AND SELLING
OFF THE REAL ESTATE AND
324
00:35:51,115 --> 00:35:57,021
PROPERTY, EQUIPMENT, THINGS LIKE
THAT.
AND, SECOND OF ALL, DIMINISHING
THE RESOURCES THAT THE REPORTERS
325
00:35:57,088 --> 00:36:05,096
HAVE.
>> Wertheim: LEAKED COMPANY
FINANCIALS SHOW IN 2017 ALDEN
BUILT IN PROFIT MARGINS AS HIGH
326
00:36:05,162 --> 00:36:15,439
AS 30% AT CERTAIN PAPERS, MORE
THAN DOUBLE INDUSTRY STANDARD.
IN RECENT FILINGS THE "NEW YORK
TIMES" COMPANY REPORTED 10%
327
00:36:15,506 --> 00:36:21,078
PROFIT MARGINS.
>> Jackson: THESE ARE EXECUTIVES
FROM A HEDGE FUND WHO LIVE IN A
VERY WEALTHY LIFESTYLE.
328
00:36:21,145 --> 00:36:26,384
THEY'RE NOT TAKING THE PROFITS
AND USING THEM TO BUILD
"THE TRIBUNE."
>> Wertheim: WHAT'S YOUR
329
00:36:26,450 --> 00:36:32,623
RESPONSE TO SOMEONE WHO'D SAY,
"LOOK, THIS IS CAPITALISM"?
>> Jackson: WELL, WE'VE ALWAYS
BEEN AWARE THAT WE'RE DOING
330
00:36:32,690 --> 00:36:41,098
JOURNALISM IN A CAPITALIST
DEMOCRACY.
AND WE'VE ALWAYS EMBRACED THAT.
BUT WE FELT THAT ALDEN DIDN'T
331
00:36:41,165 --> 00:36:46,470
RECOGNIZE THE CIVIC TRUST THAT'S
EMBEDDED IN THIS PROFIT-MAKING
MACHINE.
>> Wertheim: JACKSON AND MARX
332
00:36:46,537 --> 00:36:53,077
SAY WHAT THEY LEARNED ABOUT
ALDEN ONLY FUELED THEIR SENSE OF
URGENCY.
SO, IN 2020, PUTTING THEIR JOBS
333
00:36:53,144 --> 00:37:01,085
AT RISK, THEY WROTE AN OP-ED IN
THE "NEW YORK TIMES," PLEADING
FOR A PHILANTHROPIST,
FOUNDATION, ANYONE TO STEP
334
00:37:01,152 --> 00:37:11,162
FORWARD TO SAVE THEIR PAPER.
ONE MAN TRIED: MARYLAND HOTEL
MAGNATE STEWART BAINUM, A
LIFE-LONG SUBSCRIBER TO
335
00:37:11,228 --> 00:37:14,732
"THE BALTIMORE SUN."
BAINUM COMMITTED $200 MILLION,
AND WE FOLLOWED HIM LAST YEAR,
SCRAMBLING TO PUT TOGETHER A
336
00:37:14,799 --> 00:37:18,336
DEAL TO BUY TRIBUNE PUBLISHING.
>> Stewart Bainum: WE'VE DONE
THE DUE DILIGENCE, WE JUST NEED
A BUYER.
337
00:37:18,402 --> 00:37:25,142
>> Wertheim: BAINUM COULDN'T
FIND A PARTNER.
LAST MAY, ALDEN BOUGHT TRIBUNE
PUBLISHING FOR MORE THAN $600
338
00:37:25,209 --> 00:37:33,250
MILLION, AND TWO DAYS LATER
STARTED OFFERING BUYOUTS TO
TRIBUNE EMPLOYEES.
MORE THAN 40 HAVE SINCE LEFT THE
339
00:37:33,317 --> 00:37:39,624
"CHICAGO TRIBUNE," INCLUDING
ONE-FOURTH OF THE NEWSROOM.
FREEMAN DECLINED OUR REPEATED
REQUESTS TO SIT DOWN WITH
340
00:37:39,690 --> 00:37:48,833
"60 MINUTES," BUT HIS PUBLIC
RELATIONS TEAM SENT US LETTERS
HE WROTE TO OTHER NEWSPAPER
OWNERS THAT STATE, ALDEN IS
341
00:37:48,899 --> 00:37:53,137
COMMITTED TO PROVIDING “ROBUST,
INDEPENDENTLY MINDED LOCAL
JOURNALISM” AND THAT IT'S TIME
FOR TECH GIANTS TO START PAYING
342
00:37:53,204 --> 00:38:00,611
FOR THE “BILLIONS OF DOLLARS”
THEY'RE MAKING OFF OF NEWS
PUBLISHERS' CONTENT.
THE NEWSPAPER CRISIS DIDN'T
343
00:38:00,678 --> 00:38:07,518
BEGIN WITH ALDEN; AND THIS IS
NOT THE ONLY FINANCIAL FIRM IN
THIS SECTOR, BUT ALDEN IS OFTEN
HELD UP AS THE WORST ACTOR.
344
00:38:07,585 --> 00:38:12,657
ONE STUDY CONDUCTED BY THE
UNIVERSITY OF NORTH CAROLINA IN
2018 FOUND THAT SOME ALDEN-OWNED
NEWSPAPERS HAD CUT STAFF AT
345
00:38:12,723 --> 00:38:19,196
TWICE THE RATE OF THEIR
COMPETITORS.
STEVEN WALDMAN IS A FORMER
JOURNALIST.
346
00:38:19,263 --> 00:38:23,401
IN 2011, HE STUDIED THE DECLINE
OF THE LOCAL NEWS INDUSTRY FOR
THE FEDERAL COMMUNICATIONS
COMMISSION.
347
00:38:23,467 --> 00:38:29,206
HE SAYS THAT, IN THE ABSENCE OF
LOCAL REPORTING, THERE'S
EVIDENCE OF INCREASED CORRUPTION
BY LOCAL OFFICIALS.
348
00:38:29,273 --> 00:38:38,716
ONE EXAMPLE HE POINTS TO: BELL,
CALIFORNIA.
WHEN THE LOCAL NEWSPAPER THERE
SHUT DOWN, SCANDAL ENSUED.
349
00:38:38,783 --> 00:38:45,956
>> Steve Waldman: THE ELECTED
OFFICIALS JUST KEPT VOTING
THEMSELVES PAY RAISES TO THE
POINT WHERE THE CITY MANAGER WAS
350
00:38:46,023 --> 00:38:51,062
MAKING $800,000, JUST BECAUSE
THERE WAS NO ONE THERE.
>> Wertheim: I'M GUESSING
THERE'S NOTHING SPECIFICALLY
351
00:38:51,128 --> 00:38:55,633
CORRUPT ABOUT BELL, CALIFORNIA,
THAT WOULDN'T REPLICATE IN ANY
OF 1,000 OTHER TOWNS.
>> Waldman: PRETTY MUCH THROUGH
352
00:38:55,700 --> 00:39:01,739
ALL OF HUMAN HISTORY AND
THROUGHOUT THE WORLD, WHEN YOU
HAVE POWER THAT ISN'T WATCHED,
IT TENDS TO GET ABUSED.
353
00:39:01,806 --> 00:39:09,280
>> Wertheim: WALDMAN SAYS IT'S
NOT JUST THAT LOCAL NEWS HAS
BEEN HOLLOWED OUT; IT'S WHAT HAS
REPLACED IT.
354
00:39:09,346 --> 00:39:17,321
>> Waldman: THE VACUUM WAS
FILLED BY NATIONAL CABLE NEWS,
AND SOCIAL MEDIA, AND VERY
OPINIONATED, POLARIZING
355
00:39:17,388 --> 00:39:23,828
MATERIAL.
>> Wertheim: WALDMAN BELIEVES IN
FLOODING COMMUNITIES WITH LOCAL
REPORTERS.
356
00:39:23,894 --> 00:39:31,068
IN 2017 HE CO-FOUNDED “REPORT
FOR AMERICA,” A PROGRAM THAT
SENDS PRINT, RADIO AND
TELEVISION JOURNALISTS TO
357
00:39:31,135 --> 00:39:34,605
NEWSROOMS IN UNDERSERVED
COMMUNITIES ACROSS THE COUNTRY.
WE BROUGHT TOGETHER FIVE
REPORTERS.
358
00:39:34,672 --> 00:39:39,043
>> Chrisanna Mink: I'M CHRISANNA
MINK.
I'M A PEDIATRICIAN AND ALSO A
HEALTH REPORTER.
359
00:39:39,110 --> 00:39:43,013
>> Camalot Todd: I'M CAMALOT
TODD.
I REPORT ON MENTAL HEALTH FOR
BUFFALO.
360
00:39:43,080 --> 00:39:47,618
>> Amelia Ferrell Knisely: I'M
AMELIA FERRELL KNISELY.
I'M AN INVESTIGATIVE REPORTER
THAT COVERS POVERTY IN WEST
361
00:39:47,685 --> 00:39:51,922
VIRGINIA.
>> Wertheim: CHRIS JONES, A
MARINE CORPS VETERAN, COVERS
DOMESTIC EXTREMISM IN
362
00:39:51,989 --> 00:39:59,997
APPALACHIA.
GRACYN DOCTOR COVERS RACE AND
EQUITY IN CHARLOTTE.
THESE STUDIES THAT SHOW THAT
363
00:40:00,064 --> 00:40:03,801
PEOPLE TRUST LOCAL MEDIA MORE
THAN NATIONAL MEDIA.
DOESN'T SOUND LIKE THAT
SURPRISES YOU, THOSE RESULTS.
364
00:40:03,868 --> 00:40:07,671
( LAUGHTER )
>> Reporters: NO!
>> Jones: THESE ARE OUR
NEIGHBORS, YOU KNOW?
365
00:40:07,738 --> 00:40:13,277
WE'RE NOT WRITING ABOUT SOMEONE
I'M NEVER GOING TO TALK TO
AGAIN.
THEY'RE PEOPLE BEFORE THEY'RE
366
00:40:13,344 --> 00:40:20,184
INTERVIEW SUBJECTS.
>> Wertheim: THIS IS JONES ON
JANUARY 6.
HE HAD CULTIVATED SUCH A LEVEL
367
00:40:20,251 --> 00:40:27,424
OF TRUST FROM HIS SOURCES THAT
HE WAS ONE OF THE FEW REPORTERS
COVERING THE INSURRECTIONISTS AS
THEY STORMED THE U.S. CAPITOL.
368
00:40:27,491 --> 00:40:33,297
>> Jones: I GOT A LOT OF CALLS
IMMEDIATELY AFTER THE 6th FROM A
LOT OF DIFFERENT, LIKE, NEWS
ORGANIZATIONS, PEOPLE WHO
369
00:40:33,364 --> 00:40:36,634
WOULDN'T ANSWER AN EMAIL FROM
ME, YOU KNOW, A WEEK PRIOR.
>> Wertheim: YOU WERE THE LOCAL
JOURNALIST, YOU HAD THE SOURCES.
370
00:40:36,700 --> 00:40:41,272
>> Jones: YEAH.
>> Wertheim: YOU HAD THE
RELATIONSHIPS.
>> Todd: A LOT OF NATIONAL MEDIA
371
00:40:41,338 --> 00:40:48,045
IS COASTAL, AND IT STAYS COASTAL
UNLESS THERE'S A BIG NEWS EVENT.
AND THEN THEY FLY THEIR
REPORTERS IN, WRITE THE STORY,
372
00:40:48,112 --> 00:40:53,284
AND FLY THEM OUT.
>> Wertheim: GRACYN DOCTOR
EXPERIENCED THIS FIRSTHAND.
HER MOTHER WAS ONE OF NINE
373
00:40:53,350 --> 00:41:00,424
AFRICAN AMERICANS KILLED BY A
WHITE SUPREMACIST IN THE 2015
MOTHER EMANUEL CHURCH SHOOTING
IN CHARLESTON.
374
00:41:00,491 --> 00:41:08,966
DOCTOR FELT THAT WHEN THE
NATIONAL MEDIA PARACHUTED IN,
THEY WERE LOOKING FOR
SOUND BITES, INSTEAD OF
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00:41:09,033 --> 00:41:12,670
EXAMINING THE DEEPER QUESTIONS.
>> Doctor: ESPECIALLY IN A PLACE
LIKE CHARLESTON, SOUTH CAROLINA,
WHERE, LIKE, THE HISTORY OF
376
00:41:12,736 --> 00:41:17,074
RACISM RUNS VERY, VERY DEEP.
THAT WAS THE OPPORTUNITY TO
REALLY DIVE INTO SOME OF THAT
HISTORY, YOU KNOW?
377
00:41:17,141 --> 00:41:27,585
LIKE, WHY DID THIS HAPPEN IN
THIS COMMUNITY?
>> Wertheim: WHILE NEWSPAPERS
LIKE THE "WASHINGTON POST" AND
378
00:41:27,651 --> 00:41:33,224
"L.A. TIMES" HAVE BEEN BOUGHT BY
BILLIONAIRES, WALDMAN SAYS
ADDRESSING THIS CRISIS FALLS TO
ALL OF US.
379
00:41:33,290 --> 00:41:38,028
>> Waldman: WE NEED A DRAMATIC
INCREASE IN THE-- THE COMMITMENT
OF FOUNDATIONS, AND
PHILANTHROPISTS, AND DONORS LIKE
380
00:41:38,095 --> 00:41:45,336
YOU AND ME TO ACTUALLY
SUPPORTING LOCAL NEWS.
>> Wertheim: REMEMBER STEWART
BAINUM WHO LOST OUT TO ALDEN
381
00:41:45,402 --> 00:41:54,545
GLOBAL CAPITAL?
HE'S LAUNCHING THE "BALTIMORE
BANNER,” A NONPROFIT DIGITAL
NEWS OUTLET, TO GO HEAD-TO-HEAD
382
00:41:54,612 --> 00:41:58,048
WITH THE "BALTIMORE SUN" FOR
SUBSCRIBERS.
IT WILL COVER ONLY LOCAL NEWS
WITH PLANS, OVER THE NEXT THREE
383
00:41:58,115 --> 00:42:01,352
YEARS, TO HIRE MORE THAN 100
REPORTERS.
ALL DIGITAL.
>> Bainum: THE WEB.
384
00:42:01,418 --> 00:42:05,522
NEWSLETTERS.
PODCASTS.
APPS.
WHEREVER PEOPLE RECEIVE THEIR
385
00:42:05,589 --> 00:42:16,867
NEWS, WE'RE GOING TO GO THERE.
>> Wertheim: AFTER SOUNDING THE
ALARM ABOUT ALDEN GLOBAL
CAPITAL, GARY MARX AND DAVID
386
00:42:16,934 --> 00:42:20,271
JACKSON LEFT THE "CHICAGO
TRIBUNE."
JACKSON IS STILL WORKING AS A
REPORTER AT A NONPROFIT NEWSROOM
387
00:42:20,337 --> 00:42:24,842
IN CHICAGO.
MARX IS NOW LIVING WHAT HE CALLS
HIS SECOND DREAM JOB AS A HIGH
SCHOOL FOOTBALL COACH.
388
00:42:24,909 --> 00:42:33,517
THEY ARE MORE CONVINCED THAN
EVER THAT LOCAL NEWS CANNOT
BECOME YESTERDAY'S NEWS.
>> Marx: YOU'RE FASTER THAN
389
00:42:33,584 --> 00:42:37,855
THAT.
JOURNALISM IS ONE OF THE MOST
NOBLE PROFESSIONS THERE IS.
YOU CAN HAVE TREMENDOUS IMPACT
390
00:42:37,922 --> 00:42:45,596
ON SOCIETY.
>> Jackson: I WORK WITH A LOT OF
YOUNG PEOPLE, AND I TELL THEM
THAT THE-- WE'RE LEAVING THEM A
391
00:42:45,663 --> 00:42:51,568
SMASHED AND BROKEN SYSTEM, BUT
THAT THEY'RE GOING TO HAVE TO
REINVENT IT BECAUSE IT'S
NECESSARY.
392
00:42:51,635 --> 00:43:01,111
JOURNALISM IS NECESSARY FOR THE
SURVIVAL OF AMERICAN DEMOCRACY.
>> Wertheim: AS FOR HEATH
FREEMAN, THIS PAST SUMMER, HE
393
00:43:01,178 --> 00:43:05,482
BOUGHT A MIAMI MANSION FOR
$19 MILLION, A TRANSACTION
DISCOVERED AND REPORTED BY A
LOCAL NEWS OUTLET.
394
00:43:05,549 --> 00:43:06,550
( TICKING )
395
00:43:09,553 --> 00:43:21,098
>> LEARN ABOUT THE BIPARTISAN
PUSH IN CONGRESS TO HELP
SUPPORT LOCAL NEWS, AT
60minutesovertime.com.
396
00:43:23,000 --> 00:43:30,841
( TICKING )
>> Stahl: I'M LESLEY STAHL.
WE'LL BE BACK NEXT WEEK WITH
ANOTHER EDITION OF "60
397
00:43:32,076 --> 00:43:38,916
( TICKING )
Captioning funded by CBS