'This Week' Transcript: Chicago Mayor Rahm Emanuel

WILL: This is a transaction cost of democracy. It's untidy, of course it is. That's supposed to be that way. The congress far from being dysfunctional is functioning as a representative institute representing a country that is of two minds about its government.

AMANPOUR: All right. And we'll leave it there.

Up next, more revelations and more recriminations at Penn State. A campus is still reeling from the scandal involving the alleged rape of young boys by a top football coach.

The latest development in this appalling story coming up.

(COMMERCIAL BREAK)

AMANPOUR: This is supposed to be the most exciting time of the college football season. But this year, all eyes are on the Penn State Nittany Lions and for all of the wrong reasons as former defensive coach Jerry Sandusky is indicted on charges that he sexually assaulted children. The investigation into who knew what and why the university officials failed to act swiftly is shaking Penn State to its core.

ABC's Jim Avila has the very latest on the investigation and new questions about what's being called the most explosive and damaging scandal in the history of college sport.

(BEGIN VIDEOTAPE)

JIM AVILA, ABC NEWS CORRESPONDENT: The man at the center of the scandal, Jerry Sandusky, facing 40 counts of molesting eight boys is free to roam the streets but is not talking anymore.

UNIDENTIFIED FEMALE: Have you got anything to say?

UNIDENTIFIED FEMALE: How are you holding up?

AVILA: The card said contact my attorney. And with the once noble Penn State football program now under NCAA investigation for its handling of the scandal, its legendary coach, the university president, all fired.

Another shoe dropped Friday. The still-beloved Joe Paterno, diagnosed with lung cancer.

UNIDENTIFIED MALE: What did he say to you?

JAY PATERNO, QUARTERBACKS COACH, PENN STATE UNIVERSITY: He just waved me off. He said, don't bug me about that. I'll be fine. You worry about coaching the football team.

AVILA: ESPN's interview with Paterno's son and still Penn State Assistant Coach Jay, was the first we heard from the close-knit family since the patriarch was fired.

PATERNO: One thing that Joe has taught me is -- said to me throughout the whole of this is we ought to make sure we keep focus on the victims of this whole tragedy.

AVILA: A softer edge than what we heard at the beginning of the week from a defiant Jerry Sandusky who by telephone told Bob Costas he merely "horsed around" with 10 year old boys in the Penn State locker room shower. No sex.

BOB COSTAS: Are you sexually attracted to young boys? To underage boys?

JERRY SANDUSKY, FORMER PENN STATE FOOTBALL COACH: Am I sexually attracted to underage boys? Sexually attracted? I enjoy young people. I love to be around them. I -- no, I'm not sexually attracted to young boys.

AVILA: A message that infuriated the alleged victims and those around them. Victim number one's mother telling ABC News exclusively that statement made her boy even more anxious to testify.

UNIDENTIFIED FEMALE: He wants him to go to jail. And he wants him to pay for what he's done. And he doesn't want him on the streets where he can hurt someone else.

AVILA: The judge who allowed Sandusky free on bond was a contributor and volunteer at his charity and this week was removed from the case.

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