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Video: Scotland Yard chief resigns amid scandal

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    >>> good evening. the growing fallout from great britain's newspaper phone hacking scandal gained new momentum today, claiming two major figures. including scotland yard 's top cop. tonight the woman who until recently ran rupert murdoch 's newspaper holdings in the uk is under arrest. and the head of the london police department has abruptly resigned amid questions over his department's pursuit of the case. all this being followed very closely in this country, which is home to some of the crown jewels of murdoch 's now damaged media empire. nbc's stephanie gosk is in london tonight with late developments for us in the case. stephanie , good evening.

    >> reporter: good evening, lester. well, the casualties in this story continue to pile up. rebekah brooks , one of rupert murdoch 's most trusted executives is under arrest tonight. her spokesman says that she turned herself in and she's cooperating. then late tonight a surprise announcement from scotland yard that sir paul stephenson , the chief of police for the organization now investigating this scandal, he has stepped down. london 's police chief resigned under intense pressure after it emerged that scotland yard hired a former "news of the world" editor as a media consultant in 2009 . the same year investigators decided not to further pursue the phone hacking case. the former editor, neil wallace, was arrested last week in connection with the scandal.

    >> i have heard suggestions that we must have suspected the alleged involvement of mr. wallace in phone hacking. let me say unequivocally that i did not and have no reason to do so.

    >> reporter: even with the head of police preparing to step down, scotland yard continues to make arrests. today it was rebekah brooks , former head of rupert murdoch 's newspaper arm here in the uk who resigned herself on friday. it was just a week ago that murdoch flew to london and stood by her side, all smiles. brooks had a rise at the company becoming editor of "news of the world" when she was only 32. neil shawn worked for another murdoch paper, "the sun." he is now an nbc news analyst.

    >> she rose to the top through sheer ambition, fantastic networking and, of course, an ability to do the job.

    >> reporter: it was in 2002 with brooks at the paper's helm that "news of the world" reporters allegedly hacked the phone of murdered teenager milli doweler. a case that shocked and infur rated this country. brooks denies any phone hacking and has apologized. for the last decade she's rubbed elbows with the rich and famous and the powerful. she has had close personal relationships with the three most recent prime ministers . as recently has last december, david cameron met twice with brooks in visits that his office describes as social. cameron has come under fire for his connections to murdoch 's news international. his former spokesman andy coal san, also a former editor of "news of the world" was arrested last week. cameron himself admits the relationship between politicians and the media has become, in his words, cozy and comfortable. the head of the opposition says it's time for change .

    >> unless politics is willing to come clean about these relationships, unless it's willing to shine light on these relationships, then the public is not going to have confidence in the future.

    >> reporter: restoring confidence in news corps may be equally as difficult. something the company admitted in a second full-page ad in british papers this weekend. apologizing for our mistakes and fixing them are only first steps, the statement says. it may take some time for us to rebuild trust. they will try to start and rebuild that trust on tuesday. rupert murdoch and his son james will be here in parliament for some tough questions. rebekah brooks is supposed to be there as well. her spokesperson says because of her arrest her attendance right now is up in the air. lester?

    >> stephanie gosk in london . the


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