I say charge the daycare provider, and definitely evaulate the 7 YO. You don't leave a bunch of children unattended like that. You have the changing station and everything you need there on hand... not upstairs. http://www.wral.com/news/national_world/national/story/3007786/
OMG....that is horrible! 'He said the girl will likely be evaluated by a psychiatrist.' Likely....LIKELY?! Come on now she needs more than to be evaluated!
Or perhaps there is some disorder at work here, maybe she is the child of whomever is running the daycare and had some jealousy issues, or unrelated to the folks and jealous/self-loathing in nature. Or she could have been abused at home, as well and is acting out. It's sad all the way around, but ultimately I feel the adults are responsible.
I agree, the 7 year has some real issues here..I see jealousy big time...just no different then sibs that fight or when a new baby comes in the house and you have to deal with that. Everyone needs to be looked at here. How said for the babies family!