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." 18 00:01:51,211 --> 00:01:58,251 BUT FIRST, HOLLY WILLIAMS WITH THE LATEST FROM UKRAINE THIS EVENING. >> Williams: TODAY, RUSSIAN 19 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 21 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 30 00:03:08,621 --> 00:03:15,895 APPEARS THEY WERE DEADLY SERIOUS. FOR "60 MINUTES," I'M HOLLY WILLIAMS, IN VYNNITSIA, UKRAINE. 31 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 34 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." 36 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 37 00:04:07,146 --> 00:04:15,121 TARGETED. ONE ATTACK, NINE YEARS AGO, WAS A WAKE-UP CALL FOR INDUSTRY AND GOVERNMENT. 38 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, 41 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. 43 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 44 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 45 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. 47 00:05:14,881 --> 00:05:22,922 THEY TRAIN PEOPLE TO ACTUALLY ATTACK INFRASTRUCTURE. >> Whitaker: AND WHAT THE FORMER COMMANDOS FOUND LOOKED FAMILIAR. 48 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 53 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 57 00:06:23,349 --> 00:06:27,453 AVOID DISASTER. IF THEY HAD SUCCEEDED, WHAT WOULD'VE HAPPENED? >> Wellinghoff: COULD'VE BROUGHT 58 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 63 00:06:58,017 --> 00:07:06,192 TEXAS HAS ITS OWN. MOST OF US RARELY NOTICE SUBSTATIONS. THERE ARE 55,000 ACROSS THE 64 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, 69 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 70 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. 71 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 73 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 74 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 75 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 77 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 81 00:09:01,540 --> 00:09:09,048 300,000 CUSTOMERS, HUGE TRANSFORMERS PROTECTED BY A CHAIN LINK FENCE. >> Dr. Granger Morgan: ANYBODY 82 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 84 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, 85 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 91 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 93 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 122 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 127 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 131 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 132 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 133 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 136 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 151 00:16:47,039 --> 00:16:55,614 GANG SEEKING RANSOM, ATTENTION, OR WORSE. BUT THE VAST MAJORITY OF AMERICANS IMPRISONED ABROAD 152 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 156 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 161 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 163 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 164 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 170 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 172 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 375 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