>> ON THE NIGHT OF APRIL 16, 2013, A MYSTERIOUS INCIDENT SOUTH OF SAN JOSE MARKED THE MOST SERIOUS ATTACK ON OUR POWER
GRID IN HISTORY. IF THEY HAD SUCCEEDED, WHAT WOULD'VE HAPPENED? >> COULD'VE BROUGHT DOWN ALL OF
SILICON VALLEY. >> WE'RE TALKING GOOGLE, APPLE; ALL THESE GUYS-- >> YES, YES.
THAT'S CORRECT. >> WHO DO YOU THINK THIS COULD HAVE BEEN? >> I DON'T KNOW.
WE DON'T KNOW IF THEY WERE A NTION STATE. WE DON'T KNOW IF THEY WERE DOMESTIC ACTORS.
BUT IT WAS SOMEBODY WHO DID HAVE COMPETENT PEOPLE WHO COULD, IN FACT, PLAN OUT THIS KIND OF A VERY SOPHISTICATED ATTACK AND
EXECUTE IT. ( TICKING ) >> I'M KIND OF SURPRISED THAT THERE ARE MANY MORE-- MANY MORE
HOSTAGES BEING HELD BY GOVERNMENTS THAN BY TERRORISTS. >> I KNOW. THAT IS SURPRISING, ISN'T IT?
THE MAJORITY OF OUR CASES ARE ACTUALLY WHAT WE CALL WRONGFUL DETENTIONS. IT'S WHEN A NATION-STATE
ACTUALLY IS DETAINING AMERICAN ESSENTIALLY UNJUSTLY >> THAT GOVERNMENT WANTS SOMETHING IN RETURN FOR OUR
CITIZEN. >> THEY WANT TO USE-- THAT PERSON FOR POLITICAL LEVERAGE. THEY WANT TO USE THEM AS A
BARGAINING CHIP. ( TICKING ) >> MY DESK WAS RIGHT ABOUT HERE. AND THE EDITOR SAT UP THERE.
>> AMERICA'S NEWSPAPER INDUSTRY IS IN A STATE OF DECLINE, PARTLY DUE TO A LOSS OF ADVERTISING REVENUE, PARTLY DUE TO FINANCIAL
FIRMS THAT HAVE BOUGHT UP NEARLY A THIRD OF THE DAILY PAPERS IN THE U.S. SO, WHAT'S THE COST TO AMERICAN
CITIZENS? >> THIS IS AN ATTACK ON OUR DEMOCRACY. ( TICKING )
>> I'M LESLEY STAHL. >> I'M BILL WHITAKER. >> I'M ANDERSON COOPER. >> I'M SHARYN ALFONSI.
>> I'M JON WERTHEIM. >> I'M SCOTT PELLEY. THOSE STORIES TONIGHT ON "60 MINUTES."
BUT FIRST, HOLLY WILLIAMS WITH THE LATEST FROM UKRAINE THIS EVENING. >> Williams: TODAY, RUSSIAN
GROUND FORCES CONTINUED TO PRESS UKRAINE'S TWO LARGEST CITIES, KHARKIV, AND THE CAPITAL, KYIV. IT'S THE FOURTH DAY OF WAR HERE,
BUT AS THE SUN SET, UKRAINE'S GOVERNMENT AND THE KREMLIN AGREED TO HOLD TALKS. YET, IN AN UNNERVING SIGN OF HOW
THINGS COULD ESCALATE, PRESIDENT VLADIMIR PUTIN ORDERED RUSSIA'S NUCLEAR FORCES ON HIGHER ALERT, WHILE THE U.S. AND EUROPE HAVE
INCREASED THEIR WEAPONS SHIPMENTS TO UKRAINE. ( EXPLOSION ) RESISTANCE HERE HAS LOOKED
DETERMINED, WITH VIDEOS EMERGING OF KILLED AND CAPTURED RUSSIAN SOLDIERS, AND DESTROYED RUSSIAN TANKS AND VEHICLES.
UKRAINIAN VOLUNTEERS HAVE TAKEN UP ARMS, AND OTHERS HAVE PREPARED MOLOTOV COCKTAILS AT THE REQUEST OF THEIR GOVERNMENT.
( EXPLOSION ) MOSCOW CLAIMS IT HASN'T TARGETED CIVILIANS, BUT UKRAINE SAYS RUSSIAN FORCES HAVE FIRED
INDISCRIMINATELY. LOOK AT THIS. WE'VE SEEN PEOPLE HERE TAKING COVER IN THE SUBWAY, WHERE MANY
ARE SLEEPING AT NIGHT. AND NEARLY 400,000 HAVE ALREADY FLED ACROSS UKRAINE'S BORDERS, ACCORDING TO THE UNITED NATIONS.
LINES TO ENTER POLAND AND ROMANIA HAVE STRETCHED FOR MILES. IN THE MONTHS LEADING UP TO THIS
INVASION, MANY ORDINARY UKRAINIANS TOLD US THEY'D LAY DOWN THEIR LIVES TO PROTECT THEIR COUNTRY, AND NOW IT
APPEARS THEY WERE DEADLY SERIOUS. FOR "60 MINUTES," I'M HOLLY WILLIAMS, IN VYNNITSIA, UKRAINE.
>> Whitaker: UKRAINIANS ARE FACING THE PROSPECT OF MASSIVE POWER OUTAGES, AS RUSSIAN FORCES FIGHT FOR CONTROL OF AREAS THAT
HOUSE VITAL PARTS OF UKRAINE'S ELECTRIC GRID. IF MOSCOW SHUTS DOWN THE GRID, MILLIONS COULD BE LEFT WITHOUT
LIGHT, HEAT, REFRIGERATION, WATER, PHONES AND INTERNET. THE WHITE HOUSE IS MONITORING OUR OWN CRITICAL INFRASTRUCTURE
AFTER TWO DEPARTMENT OF HOMELAND SECURITY WARNINGS LAST MONTH ABOUT THREATS TO OUR GRID. ONE NOTED RUSSIA HAS PROVEN ITS
ABILITY TO USE CYBERATTACKS TO SHUT DOWN ELECTRIC GRIDS, AND "COMPROMISED U.S. ENERGY NETWORKS."
WE'VE BEEN LOOKING AT THE GRID FOR MONTHS, AND WERE SURPRISED TO LEARN HOW VULNERABLE IT IS, AND HOW OFTEN IT'S DELIBERATELY
TARGETED. ONE ATTACK, NINE YEARS AGO, WAS A WAKE-UP CALL FOR INDUSTRY AND GOVERNMENT.
>> KPIX Reporter: THERE'S BEEN A MAJOR TRANSFORMER LEAK. THIS IS AT A PG&E SUBSTATION. >> Whitaker: ON THE NIGHT OF
APRIL 16, 2013, A MYSTERIOUS INCIDENT SOUTH OF SAN JOSE MARKED THE MOST SERIOUS ATTACK ON OUR POWER GRID IN HISTORY.
>> KPIX Reporter: PG&E TELLS US SOMEONE MAY HAVE FIRED SOME SHOTS INTO THAT TRANSFORMER. >> Whitaker: FOR 20 MINUTES,
GUNMEN METHODICALLY FIRED AT HIGH VOLTAGE TRANSFORMERS AT THE METCALF POWER SUBSTATION. SECURITY CAMERAS CAPTURED
BULLETS HITTING THE CHAIN LINK FENCE. >> Jon Wellinghoff: THEY KNEW WHAT THEY WERE DOING.
THEY HAD A SPECIFIC OBJECTIVE. THEY WANTED TO KNOCK OUT THE SUBSTATION. >> Whitaker: AT THE TIME, JON
WELLINGHOFF WAS CHAIRMAN OF F.E.R.C., THE FEDERAL ENERGY REGULATORY COMMISSION, A SMALL GOVERNMENT AGENCY WITH
JURISDICTION OVER THE U.S. HIGH VOLTAGE TRANSMISSION SYSTEM. >> Whitaker: YOU WERE CONCERNED ENOUGH THAT YOU FLEW OUT THERE?
>> Wellinghoff: THAT'S CORRECT, AND I TOOK TWO OTHER INDIVIDUALS WHO TRAIN SPECIAL FORCES, U.S. SPECIAL FORCES.
THEY TRAIN PEOPLE TO ACTUALLY ATTACK INFRASTRUCTURE. >> Whitaker: AND WHAT THE FORMER COMMANDOS FOUND LOOKED FAMILIAR.
THEY DISCOVERED THE ATTACKERS HAD RECONNOITERED THE SITE AND MARKED FIRING POSITIONS WITH PILES OF ROCKS.
THAT NIGHT THEY BROKE INTO TWO UNDERGROUND VAULTS AND CUT OFF COMMUNICATIONS COMING FROM THE SUBSTATION.
>> Wellinghoff: THEN THEY WENT FROM THESE VAULTS, ACROSS THIS ROAD, OVER INTO A PASTURE AREA HERE.
THERE WERE AT LEAST FOUR OR FIVE DIFFERENT FIRING POSITIONS. Whitaker: NO REAL SECURITY? >> Wellinghoff: THERE WAS NO
SECURITY AT ALL, REALLY. >> Whitaker: THEY AIMED AT THE NARROW COOLING FINS, CAUSING 17 OF 21 LARGE TRANSFORMERS TO
OVERHEAT AND STOP WORKING. >> Wellinghoff: THEY HIT THEM 90 TIMES, SO THEY WERE VERY ACCURATE.
AND THEY WERE DOING THIS AT NIGHT, WITH MUZZLE FLASH IN THEIR FACE. >> Whitaker: SOMEONE OUTSIDE THE
PLANT HEARD GUNFIRE AND CALLED 911. THE GUNMEN DISAPPEARED WITHOUT A TRACE ABOUT A MINUTE BEFORE A
PATROL CAR ARRIVED. THE SUBSTATION WAS DOWN FOR WEEKS, BUT FORTUNATELY PG&E HAD ENOUGH TIME TO REROUTE POWER AND
AVOID DISASTER. IF THEY HAD SUCCEEDED, WHAT WOULD'VE HAPPENED? >> Wellinghoff: COULD'VE BROUGHT
DOWN ALL OF SILICON VALLEY. >> Whitaker: WE'RE TALKING GOOGLE, APPLE; ALL THESE GUYS-- >> Wellinghoff: YES, YES. THAT'S
CORRECT. >> Whitaker: WHO DO YOU THINK THIS COULD HAVE BEEN? >> Wellinghoff: I DON'T KNOW, WE
DON'T KNOW IF THEY WERE A NATION STATE. WE DON'T KNOW IF THEY WERE DOMESTIC ACTORS.
BUT IT WAS SOMEBODY WHO DID HAVE COMPETENT PEOPLE, WHO COULD IN FACT, PLAN OUT THIS KIND OF A VERY SOPHISTICATED ATTACK.
>> Whitaker: THE GRID IS A SPRAWLING TARGET. THERE ARE ACTUALLY THREE IN THE U.S.: THE EASTERN, WESTERN AND
TEXAS HAS ITS OWN. MOST OF US RARELY NOTICE SUBSTATIONS. THERE ARE 55,000 ACROSS THE
COUNTRY, EACH HOUSING TRANSFORMERS, THE WORKHORSES OF THE GRID. INSIDE THESE MASSIVE METAL
BOXES, RAW ELECTRICITY IS CONVERTED TO HIGHER OR LOWER VOLTAGES. ( EXPLOSION )
SHOULD A TRANSFORMER EXPLODE, LIKE THIS ONE IN MANHATTAN DURING SUPERSTORM SANDY, THE SYSTEM IS DESIGNED TO TRIGGER A
LOCALIZED, GRID-PRESERVING BLACKOUT. BUT IF SEVERAL SECTIONS OF THE GRID GO DOWN AT THE SAME TIME,
THE SHUTDOWNS CAN CASCADE LIKE DOMINOES. THAT'S WHAT SET OFF THE GREAT NORTHEAST BLACKOUT IN 2003,
LEAVING 45 MILLION AMERICANS WITHOUT POWER. A FEW MONTHS BEFORE THE ASSAULT ON METCALF, JON WELLINGHOFF OF
F.E.R.C. COMMISSIONED A STUDY TO SEE IF A PHYSICAL ATTACK ON CRITICAL TRANSFORMERS COULD TRIGGER CASCADING BLACKOUTS.
>> Wellinghoff: IT WAS ACTUALLY A VERY SHOCKING RESULT TO US THAT THERE'S VERY FEW NUMBER OF SUBSTATIONS YOU NEED TO TAKE
OUT, IN THE ENTIRE UNITED STATES, TO KNOCK OUT THE ENTIRE GRID. >> Whitaker: KNOCK OUT THE
ENTIRE GRID? >> Wellinghoff: THAT'S CORRECT. >> Whitaker: HOW MANY WOULD IT TAKE TO KNOCK OUT PUTTING THE
ENTIRE COUNTRY IN A BLACKOUT? >> Wellinghoff: LESS THAN 20. >> Whitaker: THE REPORT WAS LEAKED TO THE "WALL STREET
JOURNAL." IT FOUND THE U.S. COULD SUFFER A COAST-TO-COAST BLACKOUT IF SABOTEURS KNOCKED OUT JUST NINE
SUBSTATIONS. YOU ARE RELAYING THIS IN A VERY MEASURED WAY. I WOULD THINK THIS WOULD BE
QUITE ALARMING. >> Wellinghoff: IT WAS ALARMING. THERE'S NO QUESTION, IT IS ALARMING.
>> Whitaker: AFTER THE METCALF ATTACK, F.E.R.C. PRESSED THE UTILITIES TO HARDEN DEFENSES AT THEIR MOST CRITICAL
SUBSTATIONS-- ERECT WALLS AND SENSORS TO PREVENT SIMILAR ATTACKS-- THERE'S NOW A WALL AROUND METCALF.
BUT MANY SUBSTATIONS REMAIN VULNERABLE TARGETS, LIKE THIS ONE WE FOUND IN SOUTHERN CALIFORNIA THAT SERVES MORE THAN
300,000 CUSTOMERS, HUGE TRANSFORMERS PROTECTED BY A CHAIN LINK FENCE. >> Dr. Granger Morgan: ANYBODY
WHO KNOWS ABOUT POWER SYSTEMS KNOWS THAT THE, THE GRID IS PHYSICALLY SPREAD ALL OVER THE COUNTRYSIDE.
THERE ARE A LOT OF PLACES THAT ARE VULNERABLE. >> Whitaker: DR. GRANGER MORGAN IS A CARNEGIE MELLON UNIVERSITY
PROFESSOR OF ENGINEERING WHO CHAIRED THREE NATIONAL ACADEMY OF SCIENCES REPORTS ON THE POWER GRID FOR THE U.S. GOVERNMENT,
THE MOST RECENT IN 2021. AN EARLIER REPORT ON TERRORISM WAS CLASSIFIED FOR FIVE YEARS. >> Dr. Morgan: WE SIMPLY MADE A
STRONG CASE THAT THE GRID WAS PHYSICALLY VERY VULNERABLE. >> Whitaker: WHY WAS THERE A SPECIFIC REPORT ON TERRORISM AND
THE GRID? >> Dr. Morgan: THERE WERE CONCERNS ABOUT THE POSSIBILITY THAT A TERRORIST ORGANIZATION
COULD ATTACK THE GRID. AND AROUND THE WORLD, THERE HAVE BEEN A FAIR NUMBER OF ATTACKS ON GRIDS.
>> Whitaker: THEY HAVE ATTACKED WITH BOMBS, PLANES AND DRONES. RUSSIA'S CYBERATTACK ON UKRAINE'S GRID IN 2015 KNOCKED
ABOUT 60 SUBSTATIONS OFFLINE, LEAVING 230,000 PEOPLE IN THE DARK. THE U.S. SECRETARY OF ENERGY HAS
SAID RUSSIA COULD DO THE SAME THING HERE. >> Dr. Morgan: IN THE REPORT WE DID ON THE RESILIENCE OF THE
POWER SYSTEM, WE DID ARGUE THAT WE NEEDED AN ORGANIZATION, PROBABLY D.O.E. AND DEPARTMENT OF HOMELAND SECURITY, TO
SYSTEMATICALLY LOOK AT ALL THE KINDS OF VULNERABILITIES WE HAVE AND THEN BEGIN TO FIGURE OUT WHO COULD ADDRESS EACH.
IN TERMS OF RESILIENCE ISSUES, THERE'S NOBODY IN CHARGE. I MEAN, THERE'S NO SINGLE ENTITY THAT HAS RESPONSIBILITY FOR
EVERYTHING. >> Mike Mabee: THE U.S. ELECTRIC GRID IS THE LARGEST MACHINE IN THE HISTORY OF MANKIND.
IT IS A MARVEL OF MODERN ENGINEERING. NO ONE PERSON OWNS OR CONTROLS IT.
IT'S ACTUALLY 3,000 DIFFERENT COMPANIES, BOTH PUBLIC AND PRIVATE SECTOR, THAT OWN OR OPERATE LITTLE PIECES OF THE
ELECTRIC GRID. >> Whitaker: MIKE MABEE IS AN IRAQ WAR VET, A FORMER COP AND A SELF-TAUGHT GRID SECURITY
EXPERT. BY DAY HE WORKS FOR THE GOVERNMENT, IN HIS SPARE TIME, HE UNCOVERS PUBLIC INFORMATION
ELECTRIC UTILITIES WOULD RATHER NOT SEE THE LIGHT OF DAY AND PUBLISHES THEM ON A WEB SITE CALLED "GRID SECURITY NOW."
HE IS BOTH FASCINATED AND HORRIFIED BY THE GRID. >> Mabee: I THINK EVERYBODY NEEDS TO BE AS ALARMED AS I AM.
WE'VE HAD DISASTERS IN THE PAST BUT THEY'VE GENERALLY ALWAYS BEEN REGIONAL IN SCALE. WHAT WE'VE NEVER HAD IS A
NATIONAL-SCALE BLACKOUT, WHICH IS COMPLETELY POSSIBLE UNDER SOME KNOWN THREATS SUCH AS THE CYBER THREAT, THE PHYSICAL
SECURITY THREAT, OR EVEN EXTREME WEATHER. AND THE U.S. PUBLIC IS COMPLETELY UNPREPARED TO SURVIVE
WITHOUT THE ELECTRIC GRID FOR ANY PERIOD OF TIME WHATSOEVER. >> Whitaker: SO YOU HAVE WIND POWER, TOO?
SO WHEN HE MOVED TO TEXAS TWO YEARS AGO, HE PREPARED FOR THE WORST, INSTALLING SOLAR, WIND AND BATTERY POWER.
>> Mabee: THE WHOLE SYSTEM'S 48 VOLTS. >> Whitaker: MABEE'S FAMILY SURVIVED LAST WINTER'S DEADLY
STORM, HUNDREDS OF TEXANS PERISHED. >> Mabee: AND THE DEATHS WERE LARGELY DUE TO HYPOTHERMIA,
CARBON MONOXIDE POISONING BECAUSE WHEN PEOPLE GOT COLD THEY WOULD DO THINGS LIKE GO INTO THEIR CAR IN THE GARAGE TO
TRY TO STAY WARM. >> Whitaker: MABEE HAS BECOME A THORN IN THE SIDE OF THE FEDERAL GOVERNMENT AND UTILITY
COMPANIES. >> Mabee: I FILED A COMPLAINT ABOUT SUPPLY CHAIN CYBERSECURITY.
I FILED A COMPLAINT ABOUT PHYSICAL SECURITY. I FILED A COMPLAINT ABOUT THE TEXAS BLACKOUT.
>> Whitaker: THE GOVERNMENT AND THE INDUSTRY. THEY THINK YOU'RE AN ANNOYANCE? >> Mabee: I'VE BEEN TERMED A
"GRID SECURITY GADFLY," WHICH I WEAR THAT AS A BADGE OF HONOR. >> Whitaker: ONE FREQUENT TARGET: THE DEPARTMENT OF
ENERGY. MABEE TOLD US THE GRID INFORMATION THE D.O.E. PUTS OUT IS CONFUSING AND DISPERSED.
HE SAID HE SPENDS HOURS TRYING TO MAKE SENSE OF IT ALL. >> Mabee: THERE IS A REQUIREMENT THAT THEY REPORT ELECTRIC
DISTURBANCE EVENTS. BUT THE DATA FROM THE DEPARTMENT OF ENERGY IS SO BAD. SO, YOU KNOW, I TOOK IT UPON
MYSELF TO DO SOME DATA CRUNCHING. AND WHAT I FOUND IS THAT 38% OF THE ELECTRIC DISTURBANCE EVENTS
IN THE UNITED STATES ARE DUE TO PHYSICAL ATTACKS AGAINST THE ELECTRIC. >> Whitaker: 38%?
THAT'S A LOT. >> Mabee: SO, IN THE PAST DECADE, THERE HAVE BEEN OVER 700 PHYSICAL ATTACKS AGAINST THE
U.S. ELECTRIC GRID. >> Whitaker: MANY ARE COPY CATS OF THE METCALF ASSAULT. IN 2016, AN ECO TERRORIST IN
UTAH SHOT UP A LARGE TRANSFORMER, TRIGGERING A BLACKOUT. HE SAID HE'D PLANNED TO HIT FIVE
SUBSTATIONS IN ONE DAY TO SHUT DOWN THE WEST COAST. IN 2020, THE F.B.I. UNCOVERED A WHITE SUPREMACIST PLOT CALLED
"LIGHTS OUT" TO SIMULTANEOUSLY ATTACK SUBSTATIONS AROUND THE COUNTRY. >> Liz Sherwood-Randall: WE'RE
SEEING PLANNING TO DISABLE THE DELIVERY OF POWER TO THE AMERICAN PEOPLE. >> Whitaker: DR. LIZ SHERWOOD-
RANDALL IS PRESIDENT BIDEN'S HOMELAND SECURITY ADVISOR. WE MET WITH HER AND ANNE NEUBERGER, DEPUTY NATIONAL
SECURITY ADVISOR FOR CYBER. THEY TOLD US THE ADMINISTRATION'S INFRASTRUCTURE PLANS SHOULD HELP SECURE THE
GRID, BUT ACKNOWLEDGE THE THREATS ARE REAL. >> Sherwood-Randall: WE HAVE PHYSICAL THREATS TO THE GRID.
WE HAVE NATURAL THREATS TO THE GRID. WE HAVE CYBER THREATS TO THE GRID.
>> Whitaker: NEUBERGER CAME TO THE WHITE HOUSE FROM THE SECRETIVE NATIONAL SECURITY AGENCY, WHERE SHE BATTLED
RUSSIAN HACKERS IN CYBERSPACE. YOU SAID THAT YOU'VE BEEN TALKING TO PRIVATE UTILITY COMPANIES AROUND THE COUNTRY
ABOUT THE POTENTIAL FOR A CYBER ATTACK. WHAT ARE YOU TELLING THEM? >> Anne Neuberger: WE'RE SHARING
WITH THEM SOME OF THE CONTEXT REGARDING HOW RUSSIA AND OTHER COUNTRIES USE CYBER IN CRISIS OR CONFLICT.
WE'VE ACTIVELY DOWNGRADED INTELLIGENCE. WE'VE TAKEN ANY INFORMATION WE HAVE ABOUT MALICIOUS SOFTWARE OR
TACTICS THAT THE RUSSIAN GOVERNMENT HAS USED, SHARED THAT WITH THE PRIVATE SECTOR WITH VERY PRACTICAL ADVICE OF HOW TO
PROTECT AGAINST IT. >> Whitaker: ISN'T THE PROBLEM THAT WHEN IT COMES TO THE GRID, THERE'S NOTHING LIKE THE F.A.A.
OR THE FOOD AND DRUG ADMINISTRATION OR THE SECURITIES AND EXCHANGE COMMISSION? THERE'S NO ONE OVERALL AGENCY
OVERSEEING THESE, YOU SAID, 3,000 DIFFERENT UTILITIES ACROSS THE COUNTRY? >> Sherwood-Randall: WE DON'T
HAVE ONE SYSTEM. WE HAVE SEVERAL GRIDS. WE ALSO HAVE INDIVIDUAL ENERGY ECOSYSTEMS IN REGIONS AND
STATES. AND THAT'S PART OF OUR STRENGTH, BECAUSE THE RESOURCES FOR ENERGY ARE DIFFERENT IN DIFFERENT
REGIONS. AND WE HAVE TO ACKNOWLEDGE THAT WE'RE NOT GOING TO HAVE A ONE-SIZE-FITS-ALL SYSTEM.
>> Whitaker: YOU CALL IT ONE OF OUR STRENGTHS. BUT IT ALSO SEEMS TO BE ONE OF OUR VULNERABILITIES.
>> Sherwood-Randall: WELL, IN MY VIEW, WE CAN'T IMPOSE THE REGULATIONS THAT WOULD-- YOU WOULD BE SUGGESTING AS A FEDERAL
GOVERNMENT. WE CAN SET STANDARDS AND WE ARE SETTING STANDARDS IN A VARIETY OF ARENAS.
>> Whitaker: CARNEGIE MELLON'S GRANGER MORGAN SAYS WHAT GOVERNMENT, INDUSTRY AND LAW ENFORCEMENT ARE DOING DOESN'T
MEET THE MAGNITUDE OF THE THREAT. >> Dr. Morgan: WHAT WE NEED AT THIS POINT IS TO GET THE WHITE
HOUSE TO PUT ALL THE KEY PLAYERS TOGETHER IN A ROOM TO IDENTIFY THE BIGGEST VULNERABILITIES AND THEN TAKE STEPS TO REDUCE THEM.
>> Whitaker: I'M SURPRISED THAT'S NOT BEING DONE. >> Dr. Morgan: IT HAS NOT BEEN DONE AND IT NEEDS TO HAPPEN NOW.
( TICKING )
>> Stahl: WHEN MOST OF US HEAR THE WORD “HOSTAGE,” WE THINK OF SOMEONE HELD CAPTIVE BY A TERRORIST GROUP, OR CRIMINAL
GANG SEEKING RANSOM, ATTENTION, OR WORSE. BUT THE VAST MAJORITY OF AMERICANS IMPRISONED ABROAD
TODAY ARE HELD NOT BY TERRORIST GROUPS, BUT BY FOREIGN GOVERNMENTS, WITH WHOM THE U.S. HAS THORNY, OR IN SOME CASES, NO
RELATIONS. OUR GOVERNMENT CALLS THEM“ WRONGFUL DETAINEES,” AND THERE ARE CURRENTLY MORE THAN 40 OF
THEM. THIS FALL SAW A RARE MOMENT OF SUCCESS, THE RELEASE OF A 37-YEAR-OLD JOURNALIST NAMED
DANNY FENSTER, A DETROIT NATIVE WHO'D BEEN LOCKED AWAY FOR NEARLY SIX MONTHS IN A SMALL, ALWAYS-LIT CELL IN A PRISON IN
MYANMAR, FORMERLY CALLED BURMA. >> Danny Fenster: HEY! >> Stahl: DANNY FENSTER'S REUNION WITH HIS FAMILY IN
NOVEMBER... >> Danny Fenster: THANK YOU FOR EVERYTHING. >> Stahl: IS THE MOMENT EVERY
HOSTAGE AND DETAINEE FAMILY DREAMS OF. >> HOW'S IT FEEL TO BE BACK? >> Danny Fenster: IT FEELS
INCREDIBLE. >> Stahl: DANNY FENSTER HAD MOVED TO MYANMAR IN 2019 AND WORKED AS AN EDITOR FOR SEVERAL
PUBLICATIONS. HE AND HIS WIFE, A BRAZILIAN DIPLOMAT NAMED JULIANA, WATCHED IN DISMAY AS, A YEAR AGO THIS
MONTH, A MILITARY JUNTA OUSTED THE ELECTED GOVERNMENT OF AUNG SAN SUU KYI, WHICH BROUGHT THRONGS OF PEACEFUL PROTESTORS
INTO THE STREETS. WITHIN WEEKS, THOUGH, THE MILITARY REGIME ORDERED A VIOLENT CRACKDOWN THAT DREW
WORLDWIDE CONDEMNATION. LATE LAST SPRING, DANNY HAD A FLIGHT HOME TO VISIT HIS PARENTS, BUT AS HE WAS ABOUT TO
BOARD THE PLANE, A GROUP OF POLICEMEN SHOWED UP AND CALLED OUT HIS NAME. >> Danny Fenster: AND I JUST
LOOKED UP, LIKE, “WHAT?” AND I SAID, “YEAH, THAT'S ME.” THEY SAID, “WE HAVE QUESTIONS FOR A CRIMINAL INVESTIGATION.”
>> Stahl: DID THEY ALLOW YOU TO MAKE ANY PHONE CALLS? NO-- >> Danny Fenster: NO.
I GOT A COUPLE TEXT MESSAGES OFF TO JULIANA SAYING, “CALL THE AMERICAN EMBASSY. I'M BEING DETAINED.”
>> Stahl: WERE YOU HANDCUFFED? >> Danny Fenster: HANDCUFFED AND BLINDFOLDED. >> Bryan Fenster: I HAD A VERY
LONG TEXT MESSAGE FROM HIS WIFE, JULIANA. >> Stahl: BRYAN FENSTER, DANNY'S OLDER BROTHER BACK HOME IN
DETROIT, WAS THE FIRST IN THE FAMILY TO LEARN THAT DANNY WAS IN PRISON, AND THE FAMILY IMMEDIATELY MOBILIZED.
>> Rose Fenster: PLEASE, I BEG YOU, WE BEG YOU, BRING DANNY HOME. >> Stahl: THEY LAUNCHED A “BRING
DANNY HOME” CAMPAIGN, INCLUDING SUPPORTERS WORLDWIDE SKETCHING HIS PICTURE. DANNY WAS EVENTUALLY CHARGED
WITH INCITEMENT AND WRONGFUL ASSOCIATION BASED ON HIS WORK FOR A BANNED PUBLICATION THAT HAD BEEN CRITICAL OF THE
MILITARY, EVEN THOUGH HE HADN'T WORKED THERE FOR TEN MONTHS. HE SAYS HE DESPERATELY WANTED TO LET HIS FAMILY KNOW HE WASN'T
BEING TORTURED, BUT FOR WEEKS HE WASN'T ALLOWED ANY COMMUNICATION AT ALL OUTSIDE THE PRISON. >> Danny Fenster: I REMEMBER
JUST STARING AT THE WALL, THINKING SORT OF FIGURATIVELY, YOU KNOW, "I JUST-- WHEN IS THAT TANK GOING TO BUST THROUGH THE
WALL, YOU KNOW, AND GET ME OUT OF HERE?" >> Stahl: YOU REALLY THOUGHT AT ONE POINT YOU WERE GOING TO BE
RESCUED? >> Danny Fenster: NO. BUT I WAS REALLY HOPING. >> Ned Price: RELEASE DANNY
IMMEDIATELY. >> Stahl: THE STATE DEPARTMENT MADE REPEATED APPEALS. >> Price: WE REMAIN DEEPLY
CONCERNED OVER THE CONTINUED DETENTION OF DANNY FENSTER. >> Stahl: BUT THE U.S. GOVERNMENT HASN'T RECOGNIZED THE
LEGITIMACY OF THE JUNTA, SO EVEN GETTING INFORMATION ABOUT DANNY WAS DIFFICULT. AFTER A MONTH, HE WAS FINALLY
ALLOWED PERIODIC PHONE CALLS WITH HIS FAMILY. >> Bryan Fenster: IT WAS HARD. I MEAN, THERE WERE MANY CALLS WE
HAD WITH HIM WHERE HE WAS IN TEARS. YOU'RE TRYING TO FIND THE WORDS FOR HIM, YOU KNOW, AFTER ONE
MONTH, TWO MONTHS, THREE MONTHS, FOUR MONTHS. >> Stahl: BACK IN WASHINGTON, DANNY'S CASE HAD FALLEN UNDER
THE MANDATE OF ROGER CARSTENS, ONE OF THE FEW STATE DEPARTMENT OFFICIALS HELD OVER FROM THE TRUMP ADMINISTRATION.
HE'S A MAN WITH A TOUGH JOB AND AN ODD-SOUNDING TITLE. YOU'RE CALLED SPEHA. WHAT DOES THAT MEAN, SPEHA?
>> Roger Carstens: IT'S SPECIAL PRESIDENTIAL ENVOY FOR HOSTAGE AFFAIRS. SO, EVERYONE TRUNCATES IT INTO
SPEHA. >> Stahl: THE SPEHA OFFICE WAS CREATED IN 2015, AFTER AN INTERNAL REVIEW OF U.S. HOSTAGE
POLICY FOLLOWING THE TRAGIC DEATHS OF AMERICAN JOURNALISTS AND AID WORKERS HELD CAPTIVE BY ISIS AND COMPLAINTS FROM HOSTAGE
FAMILIES THAT THE GOVERNMENT HADN'T BEEN PROACTIVE ENOUGH. BUT IN THE YEARS SINCE, THE MAKEUP OF ROGER CARSTEN'S CASES
HAS CHANGED. I'M KIND OF SURPRISED THAT THERE ARE MANY MORE-- MANY MORE HOSTAGES BEING HELD BY
GOVERNMENTS THAN BY TERRORISTS. >> Carstens: I KNOW. THAT IS SURPRISING, ISN'T IT? THE-- THE MAJORITY OF OUR CASES
ARE ACTUALLY WHAT WE CALL WRONGFUL DETENTIONS. IT'S WHEN A NATION-STATE ACTUALLY IS DETAINING AMERICAN
-- ESSENTIALLY UNJUSTLY. >> Stahl: THAT GOVERNMENT WANTS SOMETHING IN RETURN FOR OUR CITIZEN.
>> Carstens: THEY WANT TO USE THAT PERSON FOR POLITICAL LEVERAGE. THEY WANT TO USE THEM AS A
BARGAINING CHIP. >> Jason Rezaian: IT'S SOMETHING THAT PEOPLE DON'T KNOW ABOUT, THEY DON'T THINK ABOUT VERY
MUCH. >> Stahl: "WASHINGTON POST" REPORTER AND IRANIAN AMERICAN, JASON REZAIAN WAS A WRONGFUL
DETAINEE HIMSELF, IMPRISONED FOR A YEAR AND A HALF IN IRAN, WHERE HE'D BEEN LIVING AS THE PAPER'S BUREAU CHIEF.
HE WAS FREED AS PART OF A PRISONER SWAP IN 2016, AND HAS BEEN PUSHING EVER SINCE FOR THE U.S. GOVERNMENT TO PRIORITIZE
THE CASES OF THE MORE THAN 40 CURRENT WRONGFUL DETAINEES. >> Rezaian: WE'RE NOT DOING ENOUGH FOR THESE PEOPLE, AND
WE'RE NOT DOING IT QUICKLY ENOUGH. >> Stahl: WHAT COUNTRIES AROUND THE WORLD ARE HOLDING AMERICANS
RIGHT NOW? >> Rezaian: IRAN, WHICH IS SORT OF THE PERENNIAL HOSTAGE-TAKER; CHINA, WHO HAS MORE THAN ANYBODY
ELSE; RUSSIA; VENEZUELA. >> Stahl: DOES OUR GOVERNMENT HAVE A STERN POLICY AGAINST QUID PRO QUOS?
>> Carstens: THAT'S A HARD QUESTION TO ANSWER, AND HERE'S WHY: THERE ARE THINGS THAT, TO GIVE IN, WOULD ACTUALLY EITHER
PROVIDE AN INCENTIVE OR A BENEFIT TO THE HOSTAGE TAKER, AND SO, MY JOB IS TO START BECOMING CREATIVE.
WHAT ELSE CAN WE POSSIBLY DO TO SOLVE THIS PROBLEM WITHOUT GIVING A DIRECT CONCESSION? >> Stahl: PRISONER SWAPS: TAKING
THE INNOCENT AMERICAN AND SWAPPING HIM FOR A GUILTY CRIMINAL, WE'VE DONE THAT. >> Carstens: IF THERE'S A WAY I
CAN GET SOMEONE OUT THAT DOESN'T INVOLVE A SWAP, MUCH BETTER. >> Stahl: BUT IN DANNY FENSTER'S CASE, THE MYANMAR GOVERNMENT
WASN'T ASKING FOR ANY POLICY CONCESSIONS OR PRISONER SWAPS. >> Bill Richardson: IT DIDN'T LOOK LIKE HE WAS GOING TO GET
OUT. >> Stahl: ENTER FORMER CONGRESSMAN, U.N. AMBASSADOR AND NEW MEXICO GOVERNOR BILL
RICHARDSON, WHO ESTABLISHED A FOUNDATION THAT FACILITATES THE DELIVERY OF HUMANITARIAN AID AND ENGAGES IN HOSTAGE NEGOTIATING,
HIS LONG-TIME, SOMETIMES CONTROVERSIAL, SPECIALTY. >> HOW'RE YOU FEELING? >> Stahl: HE HAD A LONG HISTORY
WITH MYANMAR, AND WAS CONCERNED ABOUT A LOCAL FORMER EMPLOYEE OF HIS FOUNDATION WHO HAD ALSO BEEN ARRESTED.
HE SECURED AN INVITATION FROM THE MILITARY REGIME TO COME TO DISCUSS HUMANITARIAN ASSISTANCE AND COVID VACCINES, AND TOLD THE
STATE DEPARTMENT HE WANTED TO WORK ON THE FENSTER CASE TOO, BUT HE GOT PUSHBACK. >> Richardson: THEY ASKED ME NOT
TO RAISE DANNY FENSTER. >> Stahl: DID YOU SAY, “WHY SHOULDN'T I RAISE THIS?” >> Richardson: YEAH, I SAID,
"LOOK, THIS IS WHAT I DO." WHAT-- SO I SAID, "ALL RIGHT, LOOK, I'M GOING TO GO.” >> Stahl: THERE WAS SOME TENSION
BETWEEN GOVERNOR RICHARDSON AND THE STATE DEPARTMENT. >> Carstens: THE BOTTOM LINE IS THAT I HAD DISCUSSIONS ON A FEW
OCCASIONS WHERE I SAID, "WE HAVE A CURRENT LINE OF EFFORT. I'M FEELING PRETTY GOOD ABOUT THIS.
CAN WE HOLD OFF A LITTLE BIT?" >> Stahl: RICHARDSON HELD OFF BRIEFLY, BUT THEN FLEW TO MYANMAR THIS PAST NOVEMBER, AND
PARTICIPATED IN TWO DAYS OF HUMANITARIAN AID MEETINGS AT THE PRESIDENTIAL PALACE WITH THE ISOLATED MILITARY REGIME,
INCLUDING THE COMMANDER IN CHIEF, A MAN CONSIDERED RESPONSIBLE AT THE TIME FOR MORE THAN 1,200 CIVILIAN DEATHS.
IT WAS A P.R. COUP FOR THE JUNTA, WHICH SPLASHED PHOTOS OF THE MEETING FAR AND WIDE. >> Richardson: WHEN I THINK WE
CONVINCED THEM OF OUR SINCERITY, THEN I SAID, "BY THE WAY, YOU'VE GOT-- I WANT TWO THINGS. YOU HAVE AN ACTIVIST BURMESE
WOMAN THAT WORKED FOR ME. I WANT YOU TO RELEASE HER." THE NEXT DAY, SHE'D BEEN RELEASED.
>> Stahl: JUST LIKE THAT? >> Richardson: JUST LIKE THAT. THEN I DECIDED, I'M ON A ROLL. "BY THE WAY, THERE'S AN AMERICAN
JOURNALIST NAMED DANNY FENSTER. AND YOU SHOULD RELEASE HIM. IT'D BE THE RIGHT THING. THE AMERICAN PEOPLE ARE GOING TO
LIKE THIS. YOUR RECORD WITH THE U.S. GOVERNMENT RIGHT NOW IS NOT VERY GOOD.
SO IT-- IT'D MAKE YOU LOOK GOOD. HUMANITARIAN GESTURE." >> Stahl: BUT YOU WERE DEFYING THE STATE DEPARTMENT.
>> Richardson: I WASN'T DEFYING. I JUST SAW AN OPPORTUNITY AND I TOOK IT. >> Stahl: RICHARDSON SAYS THE
COMMANDER PRIVATELY TOLD HIM HE'D RELEASE FENSTER, BUT NOT YET. SO, HE LEFT MYANMAR
EMPTY-HANDED, SLAMMED FOR HAVING GIVEN A PARIAH REGIME LEGITIMACY, AND LOOKING LIKE HE MIGHT HAVE MADE THINGS WORSE FOR
DANNY FENSTER, WHO WAS SENTENCED A WEEK LATER. >> Danny Fenster: “YOU'VE BEEN CONVICTED ON EVERY COUNT AND
SENTENCED TO 11 YEARS.” >> Stahl: 11 YEARS? >> Danny Fenster: YEAH. IT WAS, LIKE-- DESPAIR, YOU
KNOW? >> Stahl: HELPLESS. >> Danny Fenster: YEAH, HELPLESS.
>> Stahl: THERE WAS CRITICISM. THE FEELING THAT YOU HAD BOTCHED THIS MEETING AND IT LED TO DANNY FENSTER GETTING THIS 11-YEAR
SENTENCE. >> Richardson: YOU KNOW, FAMILIES GET SO EMOTIONAL. THEY GO THROUGH UPS AND DOWNS.
BUT I KNEW IF THE COMMANDER KEPT HIS WORD, AND I THOUGHT HE WOULD, THAT THIS WOULD BE FORGOTTEN.
>> Stahl: GO AWAY, YEAH. >> Richardson: AND I GOT HIM OUT. HE'S OUT.
AND WE DID IT. >> Stahl: SURE ENOUGH, JUST DAYS AFTER THE SENTENCING, RICHARDSON WAS QUIETLY SUMMONED BACK TO
MYANMAR, AND DANNY WAS UNEXPECTEDLY TAKEN OUT OF HIS CELL, PUT IN A VAN, AND WITHOUT KNOWING WHERE HE WAS GOING,
DRIVEN TO THE AIRPORT. >> Danny Fenster: I JUST SEE A BUNCH OF WHITE GUYS IN SUITS. I DIDN'T KNOW WHO WAS WHO.
>> Richardson: AND THERE WAS DANNY WALKING TOWARDS ME. >> Danny Fenster: AND HE SAID, "I'M HERE TO TAKE YOU HOME.”
I JUST COULDN'T STOP SMILING. I WAS SMILING SO MUCH. I WAS SO HAPPY. THE SUN WAS ON MY FACE, I COULD
FEEL THE SUN. YEAH, IT WAS AMAZING. >> Carstens: I'D LIKE TO START WITH SAYING THANK YOU TO
GOVERNOR RICHARDSON FOR SECURING THE RELEASE OF DANNY FENSTER. >> Stahl: IF THERE WAS ANY LINGERING ANGER OVER GOVERNOR
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
UPSET WHEN THE GOVERNOR ACTUALLY BRINGS HIM HOME. WE HAVE NO PRIDE OF AUTHORSHIP. WHOEVER CAN COME UP WITH A PLAN
AND GET SOMEONE OUT, WE'RE DOWN FOR THE WIN. >> Stahl: CARSTENS SAYS HE'S HOPEFUL ABOUT SOME OF THE OTHER
DETAINEE CASES. RECENTLY HE TRAVELED TO VENEZUELA TO MEET NINE AMERICANS IMPRISONED THERE.
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
GETTING BACK INTO THE NUCLEAR DEAL WHILE FOUR INNOCENT AMERICANS ARE BEING HELD HOSTAGE.”
YET JASON REZAIAN SAYS IT'S STILL NOT ENOUGH. WHEN YOU SAY WE SHOULD PRIORITIZE GETTING THESE PEOPLE
OUT-- >> Rezaian: YEAH. >> Stahl: THE IMPLICATION IS THAT YOU'RE SAYING LET'S MAKE A
DEAL; LET'S DO A SWAP. AND THEN YOU'RE RIGHT BACK TO THE ISSUE OF INCENTIVIZING THIS THING.
>> Rezaian: LOOK: ULTIMATELY, WHEN AMERICANS COME HOME, WHEN BRITS COME HOME, WHEN FRENCH PEOPLE COME HOME, THERE ARE SOME
CONCESSIONS. THE ISSUE IS NOT WHETHER OR NOT TO GIVE A CONCESSION. THE ISSUE IS HOW DO WE MAKE IT
DIFFICULT ON THE BACK END. >> Stahl: SO, YOU'RE SAYING MAKE THE DEAL HERE AND THEN PUNISH THEM LATER--
>> Rezaian: BRING THEM HOME HOWEVER YOU NEED TO DO IT-- >> Stahl: MONEY, SWAPS, WHATEVER?
>> Rezaian: YOU KNOW WHAT, CUT THROUGH ALL THE B.S. AND JUST BRING PEOPLE HOME. >> Stahl: CRITICS SAY THAT EVEN
THOUGH YOU WORK VERY HARD, YOU KEEP THE FAMILIES APPRISED OF WHAT'S GOING ON THAT YOU'RE NOT DOING A GOOD JOB.
THERE ARE STILL 40 PEOPLE BEING HELD. >> Carstens: WHEN I GO TO BED EVERY NIGHT, I FEEL THE WEIGHT
OF NOT HAVING BROUGHT HOME BETWEEN 40 AND 50 AMERICANS, SO I DON'T GO TO BED USUALLY FEELING GOOD.
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
AND ZEROES IN COMPUTER LANGUAGE. SOMEONE COMES HOME, STEPS ON A TARMAC IN AMERICA, FALLS INTO THE ARMS OF THEIR LOVED ONES.
YOU'VE GOT A VICTORY THERE. BUT UNLESS THAT'S HAPPENING, YOU'RE LOSING. >> Danny Fenster: HELLO!
>> Stahl: WE WANT TO LEAVE YOU.. >> MY BEAUTIFUL GRANDSON! >> Stahl: WITH A PRETTY SPECIAL FALLING INTO THE ARMS OF A LOVED
ONE. >> OH MY GOD! >> Stahl: DANNY'S REUNION WITH HIS 95-YEAR-OLD GRANDMOTHER, A
SURVIVOR OF THE HOLOCAUST. >> I'M HAPPY YOU'RE IN AMERICA. GOD BLESS YOU.
( TICKING )
>> Wertheim: NEWSPAPER INDUSTRY IN STATE OF DECLINE: NOT EXACTLY A STOP-THE-PRESSES HEADLINE. FOR TWO DECADES NOW, OWING
LARGELY TO THE LOSS OF ADVERTISING REVENUE TO FACEBOOK AND GOOGLE, FEWER AND FEWER AMERICANS GET THEIR NEWS, COMICS
AND SPORTS FROM ALL THOSE GAZETTES AND TRIBUNES AND JOURNALS. BUT THAT DOESN'T TELL THE WHOLE
STORY. THERE'S AN ADDITIONAL THREAT: HEDGE FUNDS AND OTHER FINANCIAL FIRMS THAT NOW OWN NEARLY A
THIRD OF THE DAILY PAPERS IN AMERICA. AND THESE NEW OWNERS ARE OFTEN COMMITTED NOT TO HEADLINES AND
DEADLINES, BUT TO BOTTOM LINES. ONE FUND IN PARTICULAR HAS BEEN CALLED BY SOME IN THE INDUSTRY“" VULTURE,” BLEEDING NEWSPAPERS
DRY. IT ALL PROMPTS THE QUESTION: AS LOCAL NEWSROOMS AND LOCAL NEWS COVERAGE SHRIVEL UP, TO WHAT
EXTENT DOES DEMOCRACY SHRINK WITH IT? BEHIND THE MARCHING BAND AND BATON TWIRLERS, AT THE ANNUAL
4th OF JULY PARADE IN POTTSTOWN, PENNSYLVANIA, YOU'LL FIND A ONE-MAN BAND: REPORTER EVAN BRANDT--
SNAPPING PHOTOS, TAKING NOTES, AND GATHERING QUOTES. >> Evan Brandt: THE PAPER COMES OUT TOMORROW.
EVERYDAY. TELL ME ALL ABOUT WHAT YOU'RE DOING HERE. >> WE'RE JUST LOOKING FORWARD TO
A GREAT 4th OF JULY. >> Wertheim: FOR THE LAST 24 YEARS, HE'S CHRONICLED THIS COMMUNITY OF 23,000 FOR THE
LOCAL NEWSPAPER, "THE MERCURY," WHICH AT ONE TIME HAD DOZENS OF REPORTERS. NOW, BRANDT IS, LITERALLY THE
LAST REPORTER STANDING IN POTTSTOWN. WHEN A COMMUNITY LIKE THIS LOSES THEIR LOCAL REPORTERS, WHAT ELSE
ARE THEY LOSING? >> BRANDT: IT REMINDS US ALL ABOUT SHARED EXPERIENCES. YOU KNOW WHO DIED, YOU KNOW WHO
GRADUATED FROM HIGH SCHOOL. YOU KNOW WHOSE KID HAD A GREAT GAME. YOU KNOW THOSE ARE ALL IMPORTANT
ELEMENTS ABOUT HOLDING PEOPLE TOGETHER. >> Wertheim: YOU'RE DESCRIBING THE SOUL OF A COMMUNITY?
>> Brandt: SURE. >> Wertheim: BRANDT TOOK US TO THE OLD HEADQUARTERS OF THE MERCURY.
PUNCHING ABOVE ITS WEIGHT, "THE MERCURY" WON A PULITZER PRIZE IN 1979 AND ANOTHER IN 1990. NOW, IT LOOKS LIKE THIS.
>> Brandt: MY DESK WAS RIGHT ABOUT HERE. AND THE EDITOR SAT UP THERE. THE SPORTS GUYS WERE ALONG HERE.
THE PHOTOGRAPHERS WERE IN THE BACK. ANYONE COULD WALK IN THE FRONT DOOR AND SAY, "I NEED TO TALK TO
A REPORTER. MY SEWER'S BACKING UP AND THE TOWNSHIP ISN'T DOING ANYTHING ABOUT IT.
CAN YOU DO SOMETHING? >> Wertheim: BEHOLD THE NEW "MERCURY" HEADQUARTERS. WE'RE GOING UP TO THE "MERCURY"
NEWSROOM. BRANDT'S TURNED HIS ATTIC INTO A COMMAND CENTER. >> Brandt: THIS IS WHERE THE
MAGIC HAPPENS. IT'S HERE THAT HE SCRAMBLES TO COVER POTTSTOWN, 20 SURROUNDING TOWNS, AND NINE DIFFERENT SCHOOL
DISTRICTS. >> THE MOTION IS CARRIED. >> Wertheim: OVERWORKED AND OVERWHELMED, BRANDT HAS SEEN HIS
INDUSTRY BATTERED BY ALL SORT OF FORCES-- DISAPPEARING CLASSIFIED ADS; PEOPLE GETTING NEWS FOR FREE ONLINE.
BUT HE SAYS THE WORST CULPRIT IS THE HEDGE FUND, ALDEN GLOBAL CAPITAL, WHICH BOUGHT "THE MERCURY" IN 2011 AND HAS SINCE
SOLD THE PAPER'S BUILDING AND SLASHED NEWSROOM STAFF BY ABOUT 70%, SEVERE EVEN BY THE STANDARDS OF THE NEWSPAPER
SECTOR THAT HAS SEEN AN ASTOUNDING 57% JOB LOSS SINCE 2008. IN 2017, AFTER ANOTHER ROUND OF
LAYOFFS, BRANDT SAYS HE FELT ANGRY, AND WANTED ANSWERS AND ACCOUNTABILITY, SO HE PAID A VISIT TO THE HAMPTONS SUMMER
HOME OF HEATH FREEMAN, THE 41-YEAR-OLD PRESIDENT OF ALDEN GLOBAL CAPITAL, AND KNOCKED ON THE DOOR.
WHAT'D YOU WANT TO SAY TO HIM? >> Brandt: WHAT I SETTLED ON IS, "WHAT VALUE DO YOU PLACE ON LOCAL NEWS?”
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,
HE CAUGHT A GLIMPSE OF FREEMAN, WHO WALKED AWAY. YOU NEVER GOT TO ASK HIM THAT QUESTION.
>> Brandt: I DID NOT. >> Wertheim: THIS SECRETIVE HEDGE FUND, THEIR WEBSITE SHOWS THIS SINGLE PHOTO, STARTED
BUILDING ITS PRINT EMPIRE OVER THE LAST DECADE AND NOW OWNS MORE THAN 200 NEWSPAPERS, MAKING IT THE COUNTRY'S SECOND LARGEST
NEWSPAPER OWNER BEHIND GANNETT. ALDEN'S RAPID TAKEOVER AND CUTS HAVE ALARMED U.S. LAWMAKERS. IN 2019, 21 SENATORS WROTE TO
HEATH FREEMAN ASKING HIM TO ABANDON HIS “NEWSPAPER-KILLING BUSINESS MODEL.” FREEMAN, THOUGH, HAS DOUBLED
DOWN. LAST YEAR, ALDEN MADE A PLAY FOR TRIBUNE PUBLISHING, HOME TO HISTORIC PAPERS LIKE "THE
BALTIMORE SUN" AND "THE CHICAGO TRIBUNE." >> Gary Marx: THIS IS AN ATTACK ON OUR DEMOCRACY.
>> Wertheim: GARY MARX AND DAVID JACKSON SPENT 30 YEARS AS INVESTIGATIVE REPORTERS AT "THE CHICAGO TRIBUNE," A PAPER THAT
HAS WON 27 PULITZER PRIZES. >> Marx: LOCAL AND REGIONAL NEWSPAPERS ARE SO IMPORTANT TO OUR COMMUNITIES, TO HOLDING OUR
LEADERS ACCOUNTABLE. THEY'RE NOT JUST GOING AFTER SOME BUSINESS THAT IS TRYING TO MAKE MONEY.
>> Wertheim: THEY ADMIT THE TRIBUNE HAD BEEN CRIPPLED FOR YEARS BY BAD MANAGEMENT; BUT AFTER SEEING ALDEN BUY THE
"DENVER POST" AND THEN GUT STAFF BY 70%, THE JOURNALISTS WERE WORRIED THE HEDGE FUND WOULD DO IRREVERSIBLE DAMAGE.
SO, WHAT'D YOU DO? >> Marx: WE FOUGHT BACK. THAT'S WHAT WE DID. DAVE AND I JUST DECIDED THAT WE
ARE GOING TO THROW EVERYTHING WE POSSIBLY CAN, USE ALL OUR INVESTIGATIVE AND REPORTORIAL SKILLS TO SAVE THIS ORGANIZATION
THAT IS SO IMPORTANT WE FELT TO THE FUTURE OF THE CITY WE LOVE, CHICAGO. >> Wertheim: SO, THIS
INVESTIGATIVE TEAM, ACCUSTOMED TO EXPOSING CORRUPTION AND INJUSTICE, ACTING AS WATCHDOGS ON LOCAL GOVERNMENT, THEY TURNED
THEIR ATTENTION TO THEIR POTENTIAL NEW OWNERS. YOU'VE SAID WHEN ALDEN CAPITAL ARRIVED, IT WAS AN EXISTENTIAL
THREAT. >> David Jackson: YEAH. >> Wertheim: WHY IS THIS FIRM PARTICULARLY NEFARIOUS?
>> Jackson: WELL, ALDEN HAS SORT OF A PLAYBOOK OF GOING INTO A DISTRESSED NEWSROOM AND SELLING OFF THE REAL ESTATE AND
PROPERTY, EQUIPMENT, THINGS LIKE THAT. AND, SECOND OF ALL, DIMINISHING THE RESOURCES THAT THE REPORTERS
HAVE. >> Wertheim: LEAKED COMPANY FINANCIALS SHOW IN 2017 ALDEN BUILT IN PROFIT MARGINS AS HIGH
AS 30% AT CERTAIN PAPERS, MORE THAN DOUBLE INDUSTRY STANDARD. IN RECENT FILINGS THE "NEW YORK TIMES" COMPANY REPORTED 10%
PROFIT MARGINS. >> Jackson: THESE ARE EXECUTIVES FROM A HEDGE FUND WHO LIVE IN A VERY WEALTHY LIFESTYLE.
THEY'RE NOT TAKING THE PROFITS AND USING THEM TO BUILD "THE TRIBUNE." >> Wertheim: WHAT'S YOUR
RESPONSE TO SOMEONE WHO'D SAY, "LOOK, THIS IS CAPITALISM"? >> Jackson: WELL, WE'VE ALWAYS BEEN AWARE THAT WE'RE DOING
JOURNALISM IN A CAPITALIST DEMOCRACY. AND WE'VE ALWAYS EMBRACED THAT. BUT WE FELT THAT ALDEN DIDN'T
RECOGNIZE THE CIVIC TRUST THAT'S EMBEDDED IN THIS PROFIT-MAKING MACHINE. >> Wertheim: JACKSON AND MARX
SAY WHAT THEY LEARNED ABOUT ALDEN ONLY FUELED THEIR SENSE OF URGENCY. SO, IN 2020, PUTTING THEIR JOBS
AT RISK, THEY WROTE AN OP-ED IN THE "NEW YORK TIMES," PLEADING FOR A PHILANTHROPIST, FOUNDATION, ANYONE TO STEP
FORWARD TO SAVE THEIR PAPER. ONE MAN TRIED: MARYLAND HOTEL MAGNATE STEWART BAINUM, A LIFE-LONG SUBSCRIBER TO
"THE BALTIMORE SUN." BAINUM COMMITTED $200 MILLION, AND WE FOLLOWED HIM LAST YEAR, SCRAMBLING TO PUT TOGETHER A
DEAL TO BUY TRIBUNE PUBLISHING. >> Stewart Bainum: WE'VE DONE THE DUE DILIGENCE, WE JUST NEED A BUYER.
>> Wertheim: BAINUM COULDN'T FIND A PARTNER. LAST MAY, ALDEN BOUGHT TRIBUNE PUBLISHING FOR MORE THAN $600
MILLION, AND TWO DAYS LATER STARTED OFFERING BUYOUTS TO TRIBUNE EMPLOYEES. MORE THAN 40 HAVE SINCE LEFT THE
"CHICAGO TRIBUNE," INCLUDING ONE-FOURTH OF THE NEWSROOM. FREEMAN DECLINED OUR REPEATED REQUESTS TO SIT DOWN WITH
"60 MINUTES," BUT HIS PUBLIC RELATIONS TEAM SENT US LETTERS HE WROTE TO OTHER NEWSPAPER OWNERS THAT STATE, ALDEN IS
COMMITTED TO PROVIDING “ROBUST, INDEPENDENTLY MINDED LOCAL JOURNALISM” AND THAT IT'S TIME FOR TECH GIANTS TO START PAYING
FOR THE “BILLIONS OF DOLLARS” THEY'RE MAKING OFF OF NEWS PUBLISHERS' CONTENT. THE NEWSPAPER CRISIS DIDN'T
BEGIN WITH ALDEN; AND THIS IS NOT THE ONLY FINANCIAL FIRM IN THIS SECTOR, BUT ALDEN IS OFTEN HELD UP AS THE WORST ACTOR.
ONE STUDY CONDUCTED BY THE UNIVERSITY OF NORTH CAROLINA IN 2018 FOUND THAT SOME ALDEN-OWNED NEWSPAPERS HAD CUT STAFF AT
TWICE THE RATE OF THEIR COMPETITORS. STEVEN WALDMAN IS A FORMER JOURNALIST.
IN 2011, HE STUDIED THE DECLINE OF THE LOCAL NEWS INDUSTRY FOR THE FEDERAL COMMUNICATIONS COMMISSION.
HE SAYS THAT, IN THE ABSENCE OF LOCAL REPORTING, THERE'S EVIDENCE OF INCREASED CORRUPTION BY LOCAL OFFICIALS.
ONE EXAMPLE HE POINTS TO: BELL, CALIFORNIA. WHEN THE LOCAL NEWSPAPER THERE SHUT DOWN, SCANDAL ENSUED.
>> Steve Waldman: THE ELECTED OFFICIALS JUST KEPT VOTING THEMSELVES PAY RAISES TO THE POINT WHERE THE CITY MANAGER WAS
MAKING $800,000, JUST BECAUSE THERE WAS NO ONE THERE. >> Wertheim: I'M GUESSING THERE'S NOTHING SPECIFICALLY
CORRUPT ABOUT BELL, CALIFORNIA, THAT WOULDN'T REPLICATE IN ANY OF 1,000 OTHER TOWNS. >> Waldman: PRETTY MUCH THROUGH
ALL OF HUMAN HISTORY AND THROUGHOUT THE WORLD, WHEN YOU HAVE POWER THAT ISN'T WATCHED, IT TENDS TO GET ABUSED.
>> Wertheim: WALDMAN SAYS IT'S NOT JUST THAT LOCAL NEWS HAS BEEN HOLLOWED OUT; IT'S WHAT HAS REPLACED IT.
>> Waldman: THE VACUUM WAS FILLED BY NATIONAL CABLE NEWS, AND SOCIAL MEDIA, AND VERY OPINIONATED, POLARIZING
MATERIAL. >> Wertheim: WALDMAN BELIEVES IN FLOODING COMMUNITIES WITH LOCAL REPORTERS.
IN 2017 HE CO-FOUNDED “REPORT FOR AMERICA,” A PROGRAM THAT SENDS PRINT, RADIO AND TELEVISION JOURNALISTS TO
NEWSROOMS IN UNDERSERVED COMMUNITIES ACROSS THE COUNTRY. WE BROUGHT TOGETHER FIVE REPORTERS.
>> Chrisanna Mink: I'M CHRISANNA MINK. I'M A PEDIATRICIAN AND ALSO A HEALTH REPORTER.
>> Camalot Todd: I'M CAMALOT TODD. I REPORT ON MENTAL HEALTH FOR BUFFALO.
>> Amelia Ferrell Knisely: I'M AMELIA FERRELL KNISELY. I'M AN INVESTIGATIVE REPORTER THAT COVERS POVERTY IN WEST
VIRGINIA. >> Wertheim: CHRIS JONES, A MARINE CORPS VETERAN, COVERS DOMESTIC EXTREMISM IN
APPALACHIA. GRACYN DOCTOR COVERS RACE AND EQUITY IN CHARLOTTE. THESE STUDIES THAT SHOW THAT
PEOPLE TRUST LOCAL MEDIA MORE THAN NATIONAL MEDIA. DOESN'T SOUND LIKE THAT SURPRISES YOU, THOSE RESULTS.
( LAUGHTER ) >> Reporters: NO! >> Jones: THESE ARE OUR NEIGHBORS, YOU KNOW?
WE'RE NOT WRITING ABOUT SOMEONE I'M NEVER GOING TO TALK TO AGAIN. THEY'RE PEOPLE BEFORE THEY'RE
INTERVIEW SUBJECTS. >> Wertheim: THIS IS JONES ON JANUARY 6. HE HAD CULTIVATED SUCH A LEVEL
OF TRUST FROM HIS SOURCES THAT HE WAS ONE OF THE FEW REPORTERS COVERING THE INSURRECTIONISTS AS THEY STORMED THE U.S. CAPITOL.
>> Jones: I GOT A LOT OF CALLS IMMEDIATELY AFTER THE 6th FROM A LOT OF DIFFERENT, LIKE, NEWS ORGANIZATIONS, PEOPLE WHO
WOULDN'T ANSWER AN EMAIL FROM ME, YOU KNOW, A WEEK PRIOR. >> Wertheim: YOU WERE THE LOCAL JOURNALIST, YOU HAD THE SOURCES.
>> Jones: YEAH. >> Wertheim: YOU HAD THE RELATIONSHIPS. >> Todd: A LOT OF NATIONAL MEDIA
IS COASTAL, AND IT STAYS COASTAL UNLESS THERE'S A BIG NEWS EVENT. AND THEN THEY FLY THEIR REPORTERS IN, WRITE THE STORY,
AND FLY THEM OUT. >> Wertheim: GRACYN DOCTOR EXPERIENCED THIS FIRSTHAND. HER MOTHER WAS ONE OF NINE
AFRICAN AMERICANS KILLED BY A WHITE SUPREMACIST IN THE 2015 MOTHER EMANUEL CHURCH SHOOTING IN CHARLESTON.
DOCTOR FELT THAT WHEN THE NATIONAL MEDIA PARACHUTED IN, THEY WERE LOOKING FOR SOUND BITES, INSTEAD OF
EXAMINING THE DEEPER QUESTIONS. >> Doctor: ESPECIALLY IN A PLACE LIKE CHARLESTON, SOUTH CAROLINA, WHERE, LIKE, THE HISTORY OF
RACISM RUNS VERY, VERY DEEP. THAT WAS THE OPPORTUNITY TO REALLY DIVE INTO SOME OF THAT HISTORY, YOU KNOW?
LIKE, WHY DID THIS HAPPEN IN THIS COMMUNITY? >> Wertheim: WHILE NEWSPAPERS LIKE THE "WASHINGTON POST" AND
"L.A. TIMES" HAVE BEEN BOUGHT BY BILLIONAIRES, WALDMAN SAYS ADDRESSING THIS CRISIS FALLS TO ALL OF US.
>> Waldman: WE NEED A DRAMATIC INCREASE IN THE-- THE COMMITMENT OF FOUNDATIONS, AND PHILANTHROPISTS, AND DONORS LIKE
YOU AND ME TO ACTUALLY SUPPORTING LOCAL NEWS. >> Wertheim: REMEMBER STEWART BAINUM WHO LOST OUT TO ALDEN
GLOBAL CAPITAL? HE'S LAUNCHING THE "BALTIMORE BANNER,” A NONPROFIT DIGITAL NEWS OUTLET, TO GO HEAD-TO-HEAD
WITH THE "BALTIMORE SUN" FOR SUBSCRIBERS. IT WILL COVER ONLY LOCAL NEWS WITH PLANS, OVER THE NEXT THREE
YEARS, TO HIRE MORE THAN 100 REPORTERS. ALL DIGITAL. >> Bainum: THE WEB.
NEWSLETTERS. PODCASTS. APPS. WHEREVER PEOPLE RECEIVE THEIR
NEWS, WE'RE GOING TO GO THERE. >> Wertheim: AFTER SOUNDING THE ALARM ABOUT ALDEN GLOBAL CAPITAL, GARY MARX AND DAVID
JACKSON LEFT THE "CHICAGO TRIBUNE." JACKSON IS STILL WORKING AS A REPORTER AT A NONPROFIT NEWSROOM
IN CHICAGO. MARX IS NOW LIVING WHAT HE CALLS HIS SECOND DREAM JOB AS A HIGH SCHOOL FOOTBALL COACH.
THEY ARE MORE CONVINCED THAN EVER THAT LOCAL NEWS CANNOT BECOME YESTERDAY'S NEWS. >> Marx: YOU'RE FASTER THAN
THAT. JOURNALISM IS ONE OF THE MOST NOBLE PROFESSIONS THERE IS. YOU CAN HAVE TREMENDOUS IMPACT
ON SOCIETY. >> Jackson: I WORK WITH A LOT OF YOUNG PEOPLE, AND I TELL THEM THAT THE-- WE'RE LEAVING THEM A
SMASHED AND BROKEN SYSTEM, BUT THAT THEY'RE GOING TO HAVE TO REINVENT IT BECAUSE IT'S NECESSARY.
JOURNALISM IS NECESSARY FOR THE SURVIVAL OF AMERICAN DEMOCRACY. >> Wertheim: AS FOR HEATH FREEMAN, THIS PAST SUMMER, HE
BOUGHT A MIAMI MANSION FOR $19 MILLION, A TRANSACTION DISCOVERED AND REPORTED BY A LOCAL NEWS OUTLET.
( TICKING )
>> LEARN ABOUT THE BIPARTISAN PUSH IN CONGRESS TO HELP SUPPORT LOCAL NEWS, AT 60minutesovertime.com.
( TICKING ) >> Stahl: I'M LESLEY STAHL. WE'LL BE BACK NEXT WEEK WITH ANOTHER EDITION OF "60
( TICKING ) Captioning funded by CBS