>> megyn: thanks for watching. i'm al-megrahi. "studio b" with shepard smith starts now. >> shepard: the news begins anew. the north korean regime up with the rhetoric. it's taking new action against south korea. we'll get the details in just a moment. the brother of the blade runner accused girlfriend killer oscar pistorius pleaded not guilty in the trial surrounding the death of a woman in a traffic crash. a highly decorated war hero, david petraeus, makes his first public apology for the affair that ended his government career. that's all ahead unless breaking news changes everything on "studio b." first from fox at 3:00 in new york city. round two at the u.s. supreme

court over same-sex marriage rights. the justice anthony kennedy raised doubts over a federal law that defines marriage but called out the white house for not supporting it. you can hear all the cheering outside the supreme court after today's arguments wrapped. reporters say it was less than a party inside the courtroom. yesterday they focused on california's proposition 8, a ballot measure. today the high court heard a challenge on the part of the defense of marriage act, doma, it recognizes marriage as the union between a man and woman and relates to 1100 federal laws, including tax benefits not available to same-sex couples. it passed with broad support from congress but that was 1996 under president clinton. public opinion as changed and this month, president clinton

urged the court to overturn the law. the current white house has chosen not to defend it. that got a rebuke from the conservative wing of the court. he said the law appears to infringe on the power of night states and d.c. which allow same-sex marriage. shannon bream is live outside the building. what was your sense of their discussion inside today? >> reporter: there were a number-of-justices who expressed concerns about doma on a number of grounds. one was about the state versus feds issue. is this a blanket statement from the federal government on marriage when marriage is a issue left to the state who issues license and makes the rules. taking it further, like ruth bader ginsburg who said with doma in place there are two tiers of marriage. they're not treated the same.

>> they touch every aspect of life. your partner is sick. social security, i mean it's pervasive. it's not a little federal sphere and only a tax question. it's -- it's, as justice kennedy said, 1100 statutes that affects every area of life she said you end up two full marriage and the other, skim milk marriage. >> shepard: separate but equal marriage. there was a lot of discussion among the justices about the motivation behind the law which went into place in 1996. >> that happened just across the street. it's hard to think 1996, it doesn't feel long ago but a lot has changed. the law passed with overhelp ming bipartisan majority and president clinton disavowed it.

justice kagan mentioned a house rule and say congress reflected an honor of collective judgment and express moraldy aprompt of sexuality. >> so 84 -- same question before, 84 senators base their vote on moral disapproval of gay people? >> it led to a discussion about bigotry and fear. well, the former solicitor general, who was arguing in favor of holding doma, said they weren't -- the folks who voted that way weren't driven by an amos or disapproval. they asked three times and three times were given the thumb's up so they voted for it. >> shannon bream, thank you. war may break out at any

moment. those words from a north north n official. officers say north korea likely would not risk a war likely but it's the latest in the escalation of tough talk from the hermit kingdom. it cut a hot line with south korea. the third severed in recent weeks and north korea recently toss the the cease-fire with south korea, threatened to nuclear washington and put out voids like this one showing new york city up in flames. jonathan hunt is in the studio. we've heard this sort of rhetoric over and over. is there anything different? >> there's some difference here. you remember a few weeks ago we heard the north koreans were going to shut down hot lines before but they were red cross hot lines, hot lines that dealt with humanitarian issues between north and south korea. this is the closing down ofhe last military to military

communication between north and south. that obviously makes everybody very nervous and the rhetoric we've heard before stepped up even more a few notches by the north koreans today. a statement on state tv said, not words but only arms will work on the u.s. and the south korean puppet forces. the will of the army and the people of the democratic people's republic of korea to safeguard the sovereignty and dignity of the country will be displayed through practical physical you counter-action. so yes, we've heard and seen this kind of thing before but it is certainly reaching new and obviously dangerous levels. >> shepard: does anyone think north korea wants to start a war? >> they don't want to start a war with the united states. they know that that would be effectively suicide.

but what you have here is a young man, a new leader, kim jung un, trying to prove himself. that worries experts. on the other side, you have the north korean military generals trying to test this young man and trying to exercise their own power. so one of the fears here is that you get people in pressured situations. they might make a mistake, they might pull the trigger, literally or figuratively, when they don't mean to. that could spark conflagration. it's frankly not a case of the north koreans firing long range missiles towards the united states, it's what they might do on a lower level towards south korea or japan. that could spark a wider conflict. >> shepard: makes sense. thank you. more on what the latest threats do mean. p.j. crowley is with us. now professor at george washington university in d.c.

any difference as far as practically speaking? >> i agree with what jonathan said. by itself, we've heard it before but the trajectory is unnerving because as you get escalation after escalation, the potential for miscalculation goes up. not only do you have an unproven leader on the north side, you have a new president on the south side. used had exchanges the fire the last couple years, the sinking of the south korean ship and fire on on the young pong island. he was determined to return fire if north korea did it again and the park administration coming in, so you have a low-level event that escalates. >> shepard: you mentioned the thinking of the south korean ship.

there was a cooling off period but there's been a promise sent that should anything like that happen again, the retaliation will be swift. which leads, again to your concern if what if one person on the border at the dmz makes a mistakes. tensions are high. >> sure but it has to be something larger that engages public opinion on one side or the other. the dilemma is you have escalations. the challenge is how do you deescalate. the posture you have the united states is not to reward bad behavior. china has influence with north korea. it doesn't want implosion of that regime but it's having its own struggles with sensible dialogue with a new leader. so china is also very frustrated, although it's not likely to take decisive action. >> the endgame, remind us for

the north koreans, no matter who their leader? >> the endgame is to survive. this is a criminal state. they make money off of a variety of unsavory and illegal activities. they want to continue here. they want to have normal relation with the world. they want to keep their nuclear weapons. and the dilemma in north korea with a untested leader is somebody going to tell him you can't have one or two of those, you certainly can't have all three. >> p.j. crowley. thank you. there is breaking news now on "fox news channel" just in to our newsroom. word a bomb has exploded in athens, greece near the acropolis. a popular destination for tourists. it's not clear to us at this moment what the target was. we have no word yet on damage but we're told the explosion did not hurt anyone.

this bombing near the acropolis in athens, greece, comes after somebody called in a phone threat to a greek newspaper. nobody has claimed responsibility. updates through the afternoon and evening. david petraeus stayed under the radar after he admitted he had an affair but last night he returned to public life and immediately upon stepping to the podium addressed the controversy. you'll hear from him next. it's been more than two years since jared lee loughner injured gabrielle giffords and others, we're getting a look at some of the key police records to come out of this shooting spree. they're numerous and detailed and i'll have those for you on this wednesday in "studio b." [ male announcer ] this is betsy.

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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years.

♪ >> shepard: the former c.i.a. director and four star general david petraeus last night

apologized openly and thoroughly for the affair that ended his career in the first public speech since he stepped down. he made the comments to 600 people, including veterans, at the university of southern california rotc dinner and addressed it right out of the gate. >> allow me to begin by reiterating how deeply i regret and apologize for the circumstances that led to my resignation from the c.i.a. and caused such pain for my family, friends, and supporters. >> shepard: you'll recall in november when david petraeus resigned. we learned he'd been sleeping with his buyographer. it came out after the fbi investigated miss broadwell for sending threatening emails to jill kelley, a friend of david petraeus and his family. he didn't get into a lot of

detail but the point was made quite clearly. >> he never mentioned the affair directly or his buyographer. after he said sorry and thanked supporters he added his resignation and circumstances surrounding it are a lesson to all. >> perhaps my experience can be instructive to others who stumble or fall as far as i did. one learns after all that life doesn't stop with such a mistake, it can and must go on. in the effort to move forward over the rocky path of one's own making is vital, inescape able and worth it. >> in the letter to the c.i.a. workforce released november 9, then director david petraeus explained he went to the president and asked to resign for personal reasons. it reed, quote, after being married 37 years i showed poor

judgment by engaging in a extramarital affair. this afternoon the president graciously accepted my resignation. last night he mentioned his wife, polly, just once. she was not at the dinner. >> shepard: there were a lot of investigations. what ever went on with those? >> the cyberstalking investigation against paula broadwell was dropped. at the time broadwell, married with small children, said she is pleased with the decision add pleased that it's resolved. in february, broadwell, also an army reservist, saw her promotion to lieutenant colonel reversed pending investigation into whether they had classified material on her computer. an investigation began into mr. whether petraeus misused information. the c.i.a. had nothing to add except to say its ongoing. >> thank you.

the jodi arias murder trial now. we may still have to wait quite a while before her case goes to the jury. this trial started back on the second day of this year. now defense attorneys called their last witness but, after that, the trial moves to rebuttal phase which is means prosecutors call over witnesses, a process that could stretch on for days or weeks. the court canceled trial proceedings today with reports jodi arias is sick. the latest defense witness is a domestic violence expert. jodi arias testified as her relationship with the ex-boyfriend fell apart, he pushed and kicked her and broke her finger and choked her until she lost consciousness but they've presented no evidence to any of that, nothing physical and not much circumstance shall the.

she stabbed him 27 times and slit his throat but those things she can't remember. two brothers, two murder trials. next, details from inside the courtroom as oscar pistorius' brother faces charges that could land him in prison. let's see what you got. rv -- covered. why would you pay for a hotel? i never do. motorcycles -- check. atv. i ride those. do you? no. boat. house. hello, dear. hello. hello. oh! check it -- [ loud r&b on car radio ] i'm going on break! the more you bundle, the more you save. now, that's progressive.

>> it's all in the family, the parents must be proud. a busy week in court for the pistorius brothers, karl, the brother of the blade runner, accused girlfriend killer oscar pistorius today pleaded not guilty in his own homicide trial. prosecutors accused carl pistorius of negligence in a crash that killed a woman. karl denies he caused the crash

and denies he was under the influence of alcohol. his brother, oscar, was not in court. oscar pistorius, the blade runner, faces murder charges, accused of brutally killing his girlfriend. he claims he thought she was an intruder. his lawyers set to protest oscar's bail conditions. defense attorney heather hanson. the brother, this was a car into motorcycle crash. >> in 2008 the brother was in the accident with a motorcycle. charges were filed, dropped, then refiled and that's the trial. >> refiled after the whole thing happened with the blade runner. >> that's right. they said they came across new evidence. but they are trying to call experts that the judge today said they could not call. i don't know what new evidence they'll introduce. >> shepard: we're not far from getting going with the blade runner. >> they have the same def attorney. >> how does that happen? >> it's a family defense

attorney and he's very good. there was conflict because the brother's trial was supposed to be today and tomorrow. they put it off until next weeks bail hearing. >> the brother is not incarcerated but oscar is waiting for word on bail. >> he's had bail but has to stay in south africa. tomorrow he wants to be able to leave south africa, drink alcohol. he wants to be able to meet with neighbors in the neighborhood. if i was his attorney that's what i would argue because he should be able to meet with potential witnesses. >> shepard: probably without the alcohol. >> probably. >> shepard: the argument he thought was an intruder is hard to make. >> it's going to be hard. the trial starts in june. between now and june, you're getting experts with regard to the angle of the gunshot wound

because he claims he did not have his legs on until after the gun was fired. >> shepard: we know what the evidence is, the trajectory is down downward. >> they'll get experts to say he lifted his arm. the light in the room -- there's a lot of evidence. that trial doesn't start until june. the brother's trial is only two days and should be done next week. >> shepard: getting an extension doesn't look that difficult. >> the judge -- i don't know the reason but the judge allowed the second day of the brother's trial to be next wednesday. >> shepard: culpable homicide, negligent kill signature charge for the brother. >> that's right. it's interesting because the woman on the motorcycle was doing what is called a poker run. there were five stops on the poker run and at each one she got a different card. at the end, whoever has the best hand wins the poker run.

at each stop there's alcohol offered. so that came into evidence today and it was a really interesting day in court. i think the pistorius attorney did a good job establishing there may have been culpability on that side. >> shepard: so a pub crawl with poker and -- >> motorcycles. >> that sounds like a great idea. >> a lot of fun. >> shepard: all right. thank you. >> thank you there. >> shepard: new documents on the 2011 massacre in tucson, documents that detail the huge concerns of this shooter's family in the days before he shot congresswoman gabrielle giffords and six others, well six shot dead, gabrielle giffords lived along with others. you probably have seen the cameras that catch us you running red lights. good grief, big brother. that's what they're supposed to do. can the government use them to record us doing other things? when this thing first started becoming part of the news cycle

eight years ago, we talked about that on this program. some day they might try to -- no, no, just for red lights. is it really? she's still the one for you -

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>> shepard: just getting tape in of the swearing inceremony for julia pierson, the first woman to hold this post. the president swearing her in moments ago. >> all right, we all set?

joe? you got the floor. >> that's me. i, state your name. >> i, julia pierson. solemnly swear i will support and defend the constitution of the united states. against all anyplace enemies, foreign and domestic. >> i bare truth, faith and allegiance to the same. i take this obligation freely. without any mental reservation or purpose of evasion. >> and that i will well and faithfully discharge the duties. >> i will well and faithfully discharge the duties. >> of the office which i'm about to enter. >> the office of which i'm about to enter. >> so help me god. >> so help me god. >> great job. >> thank youu thank you. >> i have to say that julia's reputation within the service is extraordinary. she's come up through the ranks. she's done just about every job there is to do at the secret

service. obviously she's -- she's breaking the mold in terms of directors of the agency and i think that people are all extraordinarily proud of her and we have the greatest confidence in the wonderful task that lies ahead and very confident she's going to do a great job. we just want to say congratulations. >> thank you very much. >> as bind pointed biden pointed out. this person has more control over our lives than anyone else, except or spouses, and i couldn't be placing our lives in better hands than julia. >> and my agents are excited as heck that you picked her. >> absolutely. you're going to do a great job. >> i think a lot of people who have worked with julia know how

dedicated, how professional and committed she is and i think are absolutely certain she's going to thrive in this job. all right? thank you, guys. busted. >> but delaware won last night. >> i think my women's bracket is doing much better. >> thank you. >> thank you. >> a reminder there are two tournaments going on, the men's and women's. everybody's men's bracket is busted. greiner from baylor had three dunst. >> i don't watch kids playing basketball. >> this one is a woman, she's 6'8" and has more dunks in the ncaa than all players in history. they beat florida state by 50 points. >> i don't know what any of what you said means. >> shepard: this from a person who wants to watch what?

>> the sixth nation's rugby. the only sport that matters, rugby. >> shepard: jonathan. thank you. you remember the context, while that matters, there from the president because remember the secret service had the huge prostitution scandal, getting it on in colombia while the president is there. for the first time they don't have a man in there. this time there's a woman. a woman heads the c.i.a. and they said -- i mean the secret service and the vice president said all the agents are excited but new leaf turned and away we go. stunning new details on the gunman in the shooting massacre in arizona. we're learning the guy's parents, the shooter, this guy's parents, were so worried about his bizarreo behavior they took his gun away. that was before jared lee loughner killed six people, wounded 12 and left gabrielle giffords fighting to survive. that is just one of the many details in thousands of pages of

newly released documents. the gunman is serving a life sentence. he's been diagnosed with schizophrenia. officials would not release the records, things like police reports and page after page of interviews. we're reading through them and getting and inside look at exactly how this rampage went down. trace gallagher poured through the materials and is live at our news hub. it seems clear his behavior was more and more erratic before the shooting. >> his parents not only took his guns but his dad tried to disable his car. he says in the weeks leading to the shooting he couldn't communicate with jared and kept a journal with undy cipherrable script. he brought the gun to a friend and when asked why such high

capacity, he said it was for home security. before the shooting he called another friend and left a voice message saying, hey, it's, this is jared, i had some very good times and peace out. later. the shooting happened about ten hours after that. >> shepard: what more have we learned about the morning of the shooting? >> the morning of the shooting jared's father saw him pull a black bag out of his car and put items in the pockets of his hoodies. dad chased him but couldn't catch him but drove around looking for him. he saw him flee into the desert. he showed up at a circle k and got a cab. the clerk saw him pacing and looking at his watch and at one point said it's 9:25. i've got time. gabrielle giffords didn't arrive until 10:00 a.m. when he got to the safeway parking lot, a giffords intern handed him to clipboard to sign up for the event. that's one someone yelled gun,

the shooting began angled others -- and others yelled for police to kill loughner. inside the pockets of his hoodie were two more gun magazines. >> thanks. >> joining me, criminal defense attorney duane cates. these details creep you out. >> it does. it's amazing the stuff that was going on before this happened. >> shepard: the list of it, you know, you wonder how it is we, as a society and people, individuals in general, missed this sort of thing, but it happens all the time. you don't want to overreact along the way but some of the things he was doing and saying are -- i mean they're troubling. >> they are. and fortunately in the united states, you can't arrest somebody for a crime that you think might happen later. you have to wait for a crime to happen to arrest somebody. they could have tried to get him

in a civil -- in a civil commitment and have him observed for 72 hours. but that's pretty difficult to do. >> shepard: you talked with our bookers about the suspect's mother, or the suspect's parents, mother specifically. >> yeah. you know, they did the best they could. i don't think there's going to be any criminal liability come down on them. i don't think they're -- there may be civil liability. somebody could file a wrongful death suit, but from what i understand, they don't have much in the way of money to take. so it probably will never happen. >> shepard: these sorts of -- covering these sorts of stories, they become pinpoints in a career and over the past 25 years, i'll tell you, i've covered more than i want to think about. one of the things i've noticed about this sort of event is you get to meet extraordinarily amazing individuals. in this case we met danielle

hernandez, her young intern who, my goodness, i don't know if i ever met a nicer man and he may have saved her life that morning. >> you know, extraordinary events bring out the best in america. i mean that's what we can take from this, shep, is that there are good people in this country and there are people that will lay their lives down to help each other. that's what we need to remember. >> shepard: from what i have learned, daniel hernandez stood there and plugged the blood as it came from her, began cpr, cool as a cucumber at maybe 12 12 -- 21 years old. good to see you, thank you. >> a look at wall street. it was great news yesterday, way up. not as good today but if you had cake every day, you would be fat and wouldn't want any. a lot of stocks are down but all the major indices are as high as they have ever been. we'll find out what is pushing

them up and whether the experts think it's going to last. that's straight ahead. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

>> shepard: 18 minutes before the hour. the bank crisis in the tiny island nation of cyprus did not help your 401(k) today. the dow is down and news that cyprus is set to limit the amount of cash customers can take out is not helping. cyprus banks have been closed a couple weeks. when they open tomorrow, people won't be able to take out more than 3900 bucks in cash out of the country per trip. greg palkot is live in cyprus. greg? >> reporter: authorities are now saying that banks will reopen here on thursday four hours later than they usually do. that should make anxious people even more anxious.

host of controls will be put into place to prevent a run. most won't be able to wire money out of the country and there will be limits on cash withdrawals, restriction on check and credit card use. it's supposed to be temporary but the big depositors at troubled banks won't see their money for a while, if at all. we've seen a lot of angry crowds. private security guards are being deployed to various banks thursday. there's extra police detail at the central bank. where a ton of euros is being delivered. we spoke to a manager of one branch and this person we asked why were they opening later? she said that they have not seen yet the new restrictions and we have not seen anybody go on tv or on radio to explain to the people what is going on here.

buckle your seat belt, it could be a bumpy ride on thursday. >> shepard: all right, greg, thank you. the fears out of cyprus also have the s&p 500 dipping. yesterday it was a point or so within the all-time record and investors are wondering if a correction could be coming. joining us a former trader and author of trade like a stock market wizard. it sounds like there's a bomb ticking. what is that? you don't hear it? >> unfortunately i think it's the homestretch. the market is 15 minutes to the close. >> i know because i have fancy clocks. there were a lot of concerns anytime you tell somebody i'm taking your money, even though it's above our equivalent of the dtdic insurance matter, anytime you do that, people get freaked

out. why wouldn't they? >> well, with some of the things of the government has been doing, i would be concerned too with some of the policies that are taking place. but i guess we are talking about cyprus. >> that's what i meant. >> cyprus, i think, unlike some other people, think this is a big deal. i don't think it's a big deal for the u.s. it will blow over and long term might be a positive. >> shepard: because it will get them to straighten the mess? >> no, just like the asian contagion, what it did was made the u.s. be the place that is the relative safe haven. you get a flight to quality. so when there's turmoil around the world, that's good for the u.s. >> shepard: that's what i was thinking from the beginning. if a country breaks their insurance, for instance, if they said your deposits are insured

up to 100,000 euro and they took that, we have got a new game. they didn't do that. they went over what you are guaranteed is safe and then started worrying about the rest of europe. i'm thinking if i'm in europe with a bunch of euros, i'm about to make them greenbacks. >> absolutely. hopefully that won't happen to the degree talked about and it probably won't. >> shepard: there's a lesson to everyone about finding out something about the bank with which you're dealing. the truth of they say banks, especially the two in trouble, they're basically spots where money launderses were russia stash their cash, mine's been taxed up to here. don't take my money. >> also remember your bond or cd is only as good as who is backing it. maybe one or two% interest rates don't look good but you look at

yields somewhere else and all of a sudden a 1 or 2% long bond looks good. >> shepard: does to me, right now. mark, great to see you. >> thank you. a judge in one state gave the okay for police to use red light camera footage in a murder investigation. i mean if there's a murder, okay, use what you have. but pretty soon, think about it. it's triggered an enormous debate in court and a new one. the details are next.

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>> shepard: now a murder case in washington state. it has sparked a legal debate over whether a court can use video from a red light camera for anything other than investigation into running a red light. a judge in washington state signed off on a police request for two hours of footage from

one of those cameras to help cops investigate a stabbing death. the judge approved the warrant even though state law bans investigators for using the video for anything other than red light infractions. dan springer works in our pacific northwest bureau. why is that fight over the video? >> you know the answer. there's always a question about big brother and how the government would use that video. so they passed a law saying you can only use it for writing traffic tickets but the cameras could be a good tool in criminal cases, specifically a drive by murder. the camera caught the suspect's car, grainy video, but no license plate. they wanted to use the video from a red light camera but were barred and the murder remains unsolved. the aclu says it's the price for a free society. >> when red light cameras were

put up, it was with a clear understanding to the public that this would be just for traffic enforcement. there was a lot of concern we not build the infrastructure of a surveillance society. >> a bill to lift the restriction has passed the statehouse and a similar bill considered in oregon. >> shepard: those are not bills, not law, the law says they cannot do this and they broke the law. >> that's right. in the case of -- you're talking about the case in the intro? absolutely. that search warrant being signed by the judge violated washington state's law. so it's been talked about if they ever make an arrest based partially on the videotape, that conviction would be thrown out. the interesting thing is they haven't made an arrest. more than a dozen states allow it to access it. it put away a cattle rust letter and a car thief.

police say they need a warrant. prosecutors say privacy is not an issue. >> once you walk out your door and walk down the sidewalk, you lose that expectation of privacy. that's always been the case. by definition, things you do in public are not private. >> cops would like to see the cameras at every intersection. opponents call that scary. >> shepard: the people who don't like that would not like midtown manhattans. the problem in washington is the law said you can't do it. change the law. apparently they're working on that. syria's ally, russia, criticized the arab league. the president of syria is not longer the representative, it's the head of the council of the

rebounds. sir ran refugees in turkey clashed with turkey police as they protest poor living conditions. turkey is home to thousands of the nearly 1 million syrians who fled the civil war. the russians have given the weapons and are supporting the leader who has, by all accounts, murdered tens of thousands of his own people in a civil war and continues to murder them at this moment and we still deal with russians like none of that happen. a series of landslides near seattle ruined a home and officials don't know what to do with the 20 homes in danger. as john scott put it, imagine you wake up in the morning, and the backyard is gone.

those deadly sinkholes are a problem not just in florida but

in other places. hmm. surveillance video shows the ground opening outside a construction site in china. one official say the guard passed out in the middle of the rescue efforts and died after crews rushed him to the hospital. the official blamed the property developer at the site because they say he didn't obtain the right permit. last month a man outside tampa died when a sinkhole swallowed him in his bedroom. a series of landslides wrecked a house in seattle and threatened others. crews evacuated 20 homes along this hillside, many summer vacation cabins. investigators are still not sure exactly what triggered the landslide. they thank maybe the ground was oversaturated with water but they're not sure. it did not rain in the area but the ground may have been too wet. no word of anybody hurt in this massive