This is a rush transcript from "The O'Reilly Factor," August 14, 2007. This copy may not be in its final form and may be updated.

BILL O'REILLY, HOST: "Factor follow-up" segment tonight, as we reported last night, the sanctuary city policies of Newark, New Jersey may have resulted in the murders of three college students.

Illegal alien Jose Carranza from Peru stands accused of raping a five- year-old girl, assaulting some other people, and now murdering the three young people I mentioned.

New Jersey Judge Thomas Vena actually cut Carranza's bail in half after the child molestation beef. So Carranza was out on the street, where he then allegedly committed murder. Also, no New Jersey authority alertedHomeland Security about Carranza.

Joining us now from Cleveland with reaction, FOX News anchor Geraldo Rivera. Now, in light of our very genteel conversation from a few months ago about Virginia Beach, which I mentioned in the "Talking Points Memo," here we have the exact same situation — sanctuary city policies in Newark. They don't tell the Feds about this terrible man. They actually cut his bail and let him out on the street. And he allegedly murders the three. Your reaction?

GERALDO RIVERA, FOX NEWS: I have several reactions, Bill. First of all, I broke this story nationally a week ago, Sunday, on my "At Large" program.

On Sunday night, it was 24 hours after the horrible incident had happened. And what was shocking to me then is, 24 hours after the triple murder of three young people who had everything to live for, college kids who were good kids, no criminal records, who just happened to be at the wrong place at the wrong time, no national TV news organization was doing this story.

So I asked why. Why weren't people doing this story? We had three great kids killed. Was it because there was just another homicide in Newark where there had already been 60 homicides this year? Another black on black violent crime. Why weren't we doing this story?

It was to me very depressing and outrageous that the story wasn't getting any coverage. Then what happens? A couple of days later, it is revealed that one of the alleged perpetrators, maybe the alleged ringleader, is an illegal alien. Suddenly cable news can’t get enough of the story. Why is that?

O'REILLY: I will tell you why. Let me tell you why it is.

RIVERA: Why? I think...

O'REILLY: Here's why it is.

RIVERA: The...

O'REILLY: Geraldo, let me tell you why it is.

RIVERA: So the murder of these kids with everything to live for...

O'REILLY: You ready?

RIVERA: ... no news. Perpetrator an illegal alien, now suddenly...

O'REILLY: Let me fill you in. You ready? You raise a legitimate, interesting question. Number one, the mainstream elite media doesn't care about inner-city crime. You know it, I know it, we've covered it all our lives. They don't care what happens in the four precincts. That's number one.

Number two; we can't in the United States absorb criminals from around the world. We have enough of our own. And once you get into the controversy about sanctuary cities protecting criminal aliens, as Newark, New Jersey did, as this terrible judge did, all right, then you have a story that blows up, that becomes a Washington story, an immigration story at that level, not just an inner-city crime story. You understand that.

RIVERA: But it should not be used to further changes in federal policy, unless they are reasonable and reasoned. Let me ask you a question, Bill.

Earlier, you spoke of bail. Don't you think the fact that this guy is an alleged child rapist out on $150,000 bail, which isn't really $150,000 bail. It's 10 percent. It's $15,000 bail.

O'REILLY: That's right. What kind of a judge would do that?

RIVERA: Wait, let me finish. Then he gets the 31-count indictment, alleging a pattern of rape of this child over a period of time.

O'REILLY: Right.

RIVERA: He's supposed to get $300,000 added to the $150,000. That's now $450,000 in bail. And what happens? They combine the bails. They let them stay out on the bond, the $15,000 bond.

O'REILLY: All right so...

RIVERA: Instead of paying $450,000 bail, which he could never have made and he would never have been on the street to commit this vile crime if indeed he did, he's out on $15,000. I submit this is a story about a judge...

O'REILLY: Oh, you're right.

RIVERA: ...who absolutely have his head up his ass.

O'REILLY: You're absolutely right. And we're going to get this judge.

RIVERA: That's what the story is.

O'REILLY: Right. That's the story, but look, Geraldo.

RIVERA: What about the sanctuary city?

O'REILLY: Wait a minute, hold it, hold it. This judge knew this guy was illegal. And every authority in Newark knew he was illegal. They — if anybody...

RIVERA: That's not the point. He was a child raper.

O'REILLY: But listen to me.

RIVERA: He was a child raper.

O'REILLY: Listen to me.

RIVERA: He never should have been free.

O'REILLY: Geraldo, if one New Jersey authority, one, had picked up the phone and called Homeland Security, they would have put a hold on the guy, overridden the judge, and the guy wouldn't have been out.

RIVERA: Two points. I'm calming down. Two points. Number one, do you want this guy deported after he's arrested?

O'REILLY: No, I want him in jail for the rest of his life.

RIVERA: Or do you want him tried, sentenced, convicted...

O'REILLY: Yes.

RIVERA: ...and in this case, hopefully executed.

O'REILLY: Yes.

RIVERA: That's what you want.

O'REILLY: No, I don't want him executed, life in prison.

RIVERA: The last thing that they should be concerned about is the immigration status. Now immigration cities. Now I noticed Mitt Romney attacking our friend Mayor Rudy Giuliani for helping to foster New York City's immigration policy. I interviewed Ray Kelly as recently as a month ago about the sanctuary policy in New York City.

Ray Kelly says we still have that policy. Rudy Giuliani's policy stands in New York today. We serve everybody. We don't alert the federal immigration authorities. That's not our job.

What is New York City? New York City is the safest big city in the United States today.

O'REILLY: You're rationalizing now.

RIVERA: It's enjoying a 28 percent drop in crime. The sanctuary policy, to make this an immigration story, and that's all it's been for the last five days, I think is to lose sight of what this is.

O'REILLY: It's a corruption story.

RIVERA: This is a vile crime committed by a scumbag, who should get executed.

O'REILLY: And it never should have happened because we cannot absorb criminal aliens. I'm going to take the last word, Geraldo. And we appreciate you coming on tonight.

RIVERA: OK, Bill.

O'REILLY: Look, these three would be alive. The two in Virginia city — Virginia Beach would be alive if the local authorities cooperated with Homeland Security and reported criminal aliens to ICE. You've got to get behind that, Geraldo. That has to happen or we're going to have more dead people. I got to run.

RIVERA: Yes.

O'REILLY: Geraldo Rivera, check him out on the weekends. And he'll be on here on Thursday, we hope.

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