Erin Burnett OutFront –

ISIS wanted "Lady Al Qaeda" freed for James Foley

The Obama administration, under questioning over how it handles hostage negotiations, reiterated Friday that it will not pay ransom to terrorists groups.

"We will not provide funds for terrorist organisms," Deputy National Security Adviser Ben Rhodes said, confirming a long-standing Washington policy amid claims from Islamic State jihadists that other countries had paid to have their nationals freed.

But in the case of James Foley, we also know that ISIS was demanding more than just money. The Islamic state also asked the United States to release a prisoner known as "Lady Al Qaeda."

Jean Casarez has more on the world's most famous female terrorist.