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CNN Live Today
Terror Alerts In NYC, Washington, D.C., Newark, NJ; Financial Institutions Strengthening Security
Aired August 02, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning, we're at CNN Headquarters in Atlanta. I'm Daryn Kagan.
There are new terror alerts in New York, Washington, and New Jersey today. And a senior intelligence source tells CNN arrests in Pakistan may be the reason. Ahmed Khalfan Ghailani, a suspect in the 1990 bombings of U.S. embassies in Africa and another man described as an al Qaeda computer expert, apparently provided important information. We have live reports coming up momentarily.
Tragedy in Paraguay, where three days of mourning have started for more than 300 people who died in a supermarket fire Sunday afternoon. An investigation is underway to determine the cause. An inferno raged for seven hours before being extinguished. Witnesses say that some victims were trapped inside because emergency exits were locked to avoid robberies. The supermarket owner denies that.
A Turkish trucker's association says it will no longer transport goods to U.S. forces in Iraq. That announcement coming shortly after an Internet video showed a Turkish hostage apparently being shot by his kidnappers. The truckers say they hope that militants will now release two other Turkish drivers held captive in Iraq.
A Somali man held hostage in Iraq reportedly will be released. That's according to a video on al Qaeda television. The man was kidnapped by militants associated with Abu Musab al Zarqawi. They had threatened to kill him unless he pulled out -- his company pulled out of Iraq. The hostage's Kuwaiti employer has reportedly agreed to stop operations there.
Keeping you informed, CNN is the most trusted name in news.
Our top story today, we expect to hear from President Bush. In about an hour and 20 minutes from now, we expect to see him in the Rose Garden, the White House, talking about changes that might come in light of the 9/11 Commission Report. You'll see those comments live here on CNN.
Meanwhile, presidential candidate John Kerry unveils his blueprint for fighting terrorism and protecting America. That subject is on the minds and the lips of millions of Americans today, as they awaken to unprecedented precautions fueled by the nation's latest terror warnings.
Exhaustive intelligence meticulously researched not by the U.S., but against it. Newly discovered information revealing that al Qaeda has amassed precise data on buildings considered icons in the financial industry. The possible targets are in Washington, D.C., New York and nearby Newark, New Jersey.
We begin our coverage with Jeanne Meserve, she is in the nation's capital, Deborah Feyerick is at the New York Stock Exchange.
Jeanne, you first.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, U.S. officials are so concerned because of the credibility of this information, and its specificity, which officials say is unlike anything they've ever seen before.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): A truck going through a security check in front of the World Bank, as the financial sector in New York, northern New Jersey and Washington is moved to threat Level Orange.
Intelligence indicates al Qaeda is targeting specific buildings. In the capital, the International Monetary Fund and the World Bank. In northern New Jersey, Prudential Financial. In New York, Citigroup buildings and the New York Stock Exchange. And more may be named as intelligence received in the past few days is pursued and analyzed according to officials.
TOM RIDGE, SECRETARY, HOMELAND SECURITY: The quality of this intelligence, based on multiple reporting streams in multiple locations, is rarely seen. And it is alarming in both the amount and specificity of the information.
MESERVE: Senior intelligence officials characterize al Qaeda's reconnaissance information as chilling in its scope and breadth. It includes meticulous detail. Whether security guards are armed, the location of security cameras, traffic patterns and possible escape routes. Shops nearby that can provide cover to get more information. Building construction and what kind of explosives could do maximum damage.
It also details the configuration of parking garages, which kinds of vehicles are allowed, and when. Even the incline of garage entrances.
RIDGE: The analytical piece that's associated with this would suggest that based on what we've gleaned so far, the preferred method of attack, what's being suggested in the reporting, is car and truck bombs.
MESERVE: Officials say al Qaeda began its reconnaissance before 9/11, but probably continues it to this day. And though no time frame for attack is mentioned, officials remain concerned about the run-up to the November election.
(END VIDEOTAPE)
MESERVE (on camera): U.S. officials say the new information resulted from the arrest of an al Qaeda operative by Pakistan. Pakistani officials say he was a computer expert. U.S. officials say his arrest has produced a treasure trove of information -- a treasure trove that they are still mining for leads and information.
Back to you, Daryn.
KAGAN: Jeanne Meserve in Washington, D.C., we'll be back with you later in the morning.
Outside the Beltway, today began with a midnight ban on commercial traffic, using the Holland Tunnel to travel from New Jersey into Lower Manhattan. The ban applies only to commercial traffic and only inbound vehicles. Beginning last night, police rerouted all those Manhattan-bound trucks to either the Lincoln Tunnel or George Washington Bridge, which funneled traffic north of the Financial District.
And speaking of New York, we have with us right now Governor George Pataki joining us. He is at the New York Stock Exchange this morning.
Governor, thank you for taking the time to talk with us.
GOV. GEORGE PATAKI (R), NEW YORK: Good morning, Daryn. Nice being on with you.
KAGAN: Is there any new information, sir, you can give us about the latest alerts?
PATAKI: Not really. We all know what Secretary Ridge said yesterday. But we've always known that New York is a symbol of American strength and freedom. And that places like the New York Stock Exchange are always going to be targets of those who detest our freedom. No place is better protected, better prepared.
And you can see behind me, the people on the floor of the Exchange, they're working with confidence and in defiance. And that's the way New Yorkers and Americans are in the face of threats.
KAGAN: Well, and I imagine it's no accident that you're there this morning, Mayor Bloomberg, as well. Symbolic, perhaps, to show that it's important to go on with the daily life, even in the Financial District, which could be a target?
PATAKI: Well, I think it's important that the people who work here or come here know that the government officials are going to not just talk about protecting them, but be here and actually take concrete action. And the mayor has provided tremendous leadership.
As you said, New York City has been at a Level Orange since September 11. And now we're just ratcheting that up in specific sites and other areas around the city and around the state.
KAGAN: And I wanted to ask you about that. It has been at orange, unlike many parts of the country. So, why not raise it even to a higher color just for your city? PATAKI: Well, what the mayor refers to it as an "Orange Plus." And I think that's what it is, because we want people to go about their lives. We want them to live with the freedom and the confidence that they're entitled to have as New Yorkers, and as Americans.
And one of the weapons that terrorists try to use is, in addition to actual terror, it's fear. And we can't give in to that fear. So we want New Yorkers to continue to go about, go to the plays, go to the restaurants, certainly come to work at the Stock Exchanges and the other financial institutions in New York City.
And that's going to happen. And people should know that there is no place that is better prepared or taking tougher steps to protect the people than we are here in New York.
KAGAN: I think one thing that strikes people about this go- around is the specificity of this particular threat, and finding out exactly what the potential targets might be. From the background position where you sit, and the kinds of information you get, is this as much detail as threats in the past?
PATAKI: Well, it is much more detailed and it is much more specific and it is credible. In the past, we had had generic threats but not aimed at specific sites. But on the other hand, you always know, in the absence of any specific threat, that a symbol of American economic strength like the Stock Exchange will always be a target. So, it's not as though these are places that are surprised to hear about.
What is surprising is the level of detail and the level of specificity. But all it means is we've got to continue to do our job, to be proactive.
And by far, the best way to protect the Stock Exchange or those buildings in Washington that are threatened is to take the war of terror against those terrorists around the globe. Not just sit back and protect the building, but go after those who would attack us again. And that's what the president is doing. And this is going to be a long, difficult war. But we're Americans, we're tough and we're going to win that war.
KAGAN: Governor Pataki, thank you so much for your time, sir. I know it's a big day, especially in New York City. I appreciate your time.
PATAKI: Thank you, Daryn. Thank you.
KAGAN: New York City has kept its terror alert level at orange. You heard the governor mention that. It's been that way since the 9/11 attacks. But the precautions that are in place today are even exceptional for a city that is always on guard.
And for that, let's bring in Deborah Feyerick. She is outside the New York Stock Exchange, the heart of the nation's financial system, and a specific target that was mentioned in that intelligence.
Deb, good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Morning, Daryn. Well, the head of the New York Stock Exchange made it very clear this morning that the Exchange is open, that even in the face of these new threats against financial institutions, that stocks will trade, that business will go on.
That is a message that was reiterated by New York City's Mayor Mike Bloomberg, who was at the New York Stock Exchange this morning to ring the opening bell.
Yesterday he told New Yorkers that the city will take no chances and spare no expense. Though he did say that there is no timetable on any of this information. That is, they don't know whether the information gotten two years ago or two days ago. So, that is a big unknown.
Now, trucks around Wall Street are being stopped and searched by police. Traffic, specifically commercial vehicles, as you mentioned, being rerouted away from Lower Manhattan, away from the tunnels that bring traffic from New York and Queens into this part of the city. Police presence is heavy.
But I'll tell you, Daryn, no more heavy than what we usually see in this area. People here very clear to point out that in fact this is a level they have been at since post-9/11.
Now, authorities right now trying to determine whether in fact the terror operatives who were here conducting surveillance actually moved past that phase, whether they are in place and ready to strike. The big concern right now, truck bombs and bombs that could be smuggled in backpacks -- Daryn.
KAGAN: And Deb, any way of telling how these threats might have kept some people from coming to work today? I know it's summer, so things are a little bit slower in New York City anyway. But do the crowds seem about normal for an early August Monday morning?
FEYERICK: Absolutely. Just before 9:00 this morning, there was just a stream of people heading into this area. People said that they were a little bit more nervous. But they are getting used to living with this kind of uncertainty. One woman did say, though, that this new information has definitely underscored her desire to stay home during the Republican National Convention, which is scheduled to take place at the end of August -- Daryn.
KAGAN: A big month for New York City. Deb Feyerick, thank you. More from you later in the morning as well.
Well, now to northern New Jersey. There is another identified target, the Prudential Financial headquarters. And evidence of that is on display. Employees reporting to work today will find two Newark streets blocked off. A new metal fence surrounding the building. Officers are both on the streets and the rooftops. They have been toting assault rifles.
In New York City, group employees received an e-mail warning to them of tighter security greeting their arrival this morning.
Outside there, our Mary Snow, outside the 59 story headquarters in Manhattan.
Mary, good morning.
MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: Daryn, and certainly you can see the increased police presence here in midtown Manhattan outside of the Citigroup Center, one of the tallest buildings in midtown. For the members of the Hercules Unit, you may have seen these elite police officers outside the New York Stock Exchange. They are also here outside of Citigroup.
Certain entrances to the building were closed. There are two Citigroup buildings here. Entrances have been closed to consolidate the security forces. And also, bags have been screened. IDs carefully watched to match names and pictures. And there had been a long line going in this morning.
In terms of how many people showed up for work, spokesperson for Citigroup saying that the numbers haven't come in. A very unscientific result, I talked to one employee who told me that on his floor, there had been a lot of empty seats. He estimated about 60 to 70 percent full on his floor. But he also pointed out that people had been taking vacation, because this is August, of course.
And you know, in talking to the people who came to work today, in terms of how they felt, were they nervous, a number of them showing real resilience, saying that they had worked downtown during 9/11 and that this has become a part of life. And in their words, just another day. A number of them telling me that they took the subway to work today, a big subway hub right underneath these buildings.
And they had said that they were preparing, gearing up for the Republican convention. They knew security was being tight. They said they weren't surprised because this building is such a high profile building, that they were not shocked. Some saying that they were getting their emergency kits out First Aid kits that they had been handed out some time ago, and having family evacuation plans that they've rehearsed -- Daryn.
KAGAN: Mary Snow in Midtown, Manhattan. Thank you.
New York Mayor Michael Bloomberg is scheduled to hold a news conference at the top of the hour. We do plan live coverage of that.
Also getting word that President Bush will speak just over an hour from now, 11:20 a.m. Eastern/8:20 Pacific from the Rose Garden of the White House. We will have those comments for you live right here on CNN.
Much more news ahead after this break.
(COMMERCIAL BREAK)
KAGAN: As we expect, just about an hour from right now, we think that President Bush will be speaking at the White House. What does he have to say?
Let's bring in our Suzanne Malveaux with a preview -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, President Bush is going to be in the Rose Garden. And he is going to be there with his national security officials, as well as Homeland Security officials to announce the 9/11 Commission recommendations that he is signing off on. White House spokesman Scott McClellan, just moments ago, saying that he president essentially signing off on almost all of them.
The key ones is the creation of a national director of intelligence. This is one individual who essentially would oversee not only the CIA, but 14 other intelligence agencies, as well as perhaps even control the budgets of all of those agencies reporting directly to the president.
The big caveat here, however, is that the administration does not approve that this individual would be within the executive office, would work within the White House. They would have a direct line to the president, but not within the executive office.
That is because they feel that this would compromise that person's independence and autonomy, when it comes to dealing with intelligence. That also it would create a situation where the president could be accused of perhaps manipulating intelligence, promoting his own policies. And also would make that person essentially have to endure a congressional oversight. That is simply something this administration is not willing to do. So, that is what we are expecting.
They're also going to sign off on another major recommendation. That is the creation of a national counter terrorism group outside of the national security counsel. One a center that essentially will integrate much of the information that is spread out through so many different departments as it exists now.
Now, we are told there are several recommendations the president can sign off by executive order, that that is something that within the coming days you'll actually, they say, see some changes. Changes will be made as soon as he signs those orders -- that is, in terms of creating greater funding, greater emphasis on human intelligence. Also creating better national standards for identification, like driver's licenses, better sharing of intelligence -- those types of things.
But also the administration saying that a lot of these recommendations, they believe, that the president has already initiated. They believe the administration has already made it a top priority. Daryn, the political background, the context of all of this, of course, is both President Bush and his opponent John Kerry are trying to position themselves as the one who essentially is doing the better job of ensuring national security. And that signing off on those 9/11 Commission recommendations is a big part of this.
Kerry, endorsing the full package, he says. President Bush, today we expect him to say that he's endorsing most of it.
KAGAN: And we will look for that. Exactly one hour from right now, we'll be back with you. Suzanne Malveaux, thank you.
And a reminder that the president will be speaking from the Rose Garden of the White House at 11:20 Eastern. You'll see those comments live right here on CNN.
Meanwhile, the convention bounce: Did it work for the Kerry Edwards ticket? Find out when we check in with our Bill Schneider.
Also protecting your investments during an increased terror threat. Our Gerri Willis is there for us.
Hi, Ger.
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. We'll tell you what you need to know, what to do, what not to do when CNN LIVE today returns.
(COMMERCIAL BREAK)
KAGAN: Key financial institutions in New York, Washington, and northern New Jersey are operating under increased security, after a new terrorism warning. What does this mean for investors and the nation's financial markets?
CNNfn's personal finance editor Gerri Willis is in New York with today's "Top Five Tips."
Hey, Ger.
WILLIS: Hey, Daryn, good to see you. My first tip today, you probably could have guessed it, it's don't panic. Look, even if there were a bomb to go off at the NYSE or elsewhere, it would be a tragedy but it would not stop the financial markets. You're still going to be able to cash checks and go to ATMs.
The reason for that? After 9/11, all of these financial institutions came in and put into place what they call Redundant Systems. Backups to make sure that if the bricks and mortars fail, there's an electronic system that will come in and pick up the slack. So you don't have to worry about the system itself. It shouldn't fail here.
KAGAN: So, some people are going to feel the need to go out and sell. But you're saying to resist that urge?
WILLIS: Yes, resist the urge. Interesting, there were a lot of predictions that the markets would fall dramatically this morning. And while they're off a little bit, they haven't fallen dramatically. A lot of people already taking this advice don't sell out.
Because at the end of the day, you can't control the price you're selling at if you're selling willy-nilly. So make sure you keep your head, your wits about you, and hang on to what you've got to see what happens next.
KAGAN: Oh. Well, and there are things you can do, like making sure all your files are ready to go?
WILLIS: Exactly. Instead of panicking, your best bet is to make sure you have all your financial ducks in a row. Make sure you've got copies of that 401(k) statement, your banks statements. If you bank online, it's even easier. You can just print those out this morning, makes a lot of sense. Make sure you have copies on hand.
KAGAN: And then that's not the only financial record you want to check.
WILLIS: Exactly. You want to maintain good habits. Remember that you want to make periodic checks on your investments, and make changes only periodically instead of all the time. The markets were closed for four days after 9/11. And after that, I think people rushed into the market and did a lot of selling. But you're better off making those changes only periodically, maybe once a quarter, to make sure that your asset allocation is in line.
KAGAN: And in terms of being ready, we heard Mary Snow actually mention this, what some folks in Midtown Manhattan are doing. And that is to have a plan in case something goes wrong.
WILLIS: Yes. If you happen to be in one of these cities, Daryn, it makes a lot of sense to have a disaster plan with your family. That means if something happens, you know where you're going to meet up. Keep in mind to that cell phones did not work after 9/11, or they worked periodically, sporadically. Make sure you have got some LAN line numbers in place.
And if you're not in one of these areas, do what you can to keep your family safe. Make sure you've got the right home insurance, life insurance, those kinds of things. At the end of the day, don't panic. Plan ahead -- Daryn.
KAGAN: I think it was almost a year ago that the blackout took place in New York City, and the cell phones didn't work either. So don't rely on that.
WILLIS: Right. They're not too helpful sometimes.
KAGAN: Gerri, thank you.
WILLIS: Thank you.
KAGAN: Gerri Willis, we'll see you later in the week.
Heading out across eight states, John Kerry takes his new message on the road. We'll hear what the Democrats are planning for America straight ahead.
Later, a mysterious animal lurking in the woods. Can you tell what kind of animal this is from the picture? If you can't, you're not alone. Stay with us for the answer. (COMMERCIAL BREAK)
KAGAN: Let's take a look at what's in the news right now.
President Bush says he will support the creation of a National Intelligence Director and the establishment of a National Counterterrorism Center. But not exactly as the 9/11 Commission was proposing. A senior adviser says Mr. Bush wants to keep them outside of the executive office of the president. President Bush is expected to make that announcement at 11:20 Eastern. CNN will carry those comments live.
Other stories in the news right now. Five of the nation's most important financial centers are under extremely heavy guard this morning, after intercepted intelligence suggested they could be targets of al Qaeda. They include the New York Stock Exchange, and the Citigroup headquarters in Manhattan, the International Monetary Fund and the World Bank buildings in Washington, and the Prudential Financial building in Newark, New Jersey.
Fears over the possible terror strikes and the disruption of supplies have driven the price of crude oil to record levels. Crude prices are more than a third higher than they were one year ago today. We'll have a report from the New York Stock Exchange on exactly that in just a few minutes.
Freedom could come this week for Mary Kay Letourneau. She's the schoolteacher who had a longstanding affair with a student and went to prison for it. The affair began when the boy was 12. And now at 21, he says he's not sure what will happen next with them or the two children from that relationship.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired August 2, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning, we're at CNN Headquarters in Atlanta. I'm Daryn Kagan.
There are new terror alerts in New York, Washington, and New Jersey today. And a senior intelligence source tells CNN arrests in Pakistan may be the reason. Ahmed Khalfan Ghailani, a suspect in the 1990 bombings of U.S. embassies in Africa and another man described as an al Qaeda computer expert, apparently provided important information. We have live reports coming up momentarily.
Tragedy in Paraguay, where three days of mourning have started for more than 300 people who died in a supermarket fire Sunday afternoon. An investigation is underway to determine the cause. An inferno raged for seven hours before being extinguished. Witnesses say that some victims were trapped inside because emergency exits were locked to avoid robberies. The supermarket owner denies that.
A Turkish trucker's association says it will no longer transport goods to U.S. forces in Iraq. That announcement coming shortly after an Internet video showed a Turkish hostage apparently being shot by his kidnappers. The truckers say they hope that militants will now release two other Turkish drivers held captive in Iraq.
A Somali man held hostage in Iraq reportedly will be released. That's according to a video on al Qaeda television. The man was kidnapped by militants associated with Abu Musab al Zarqawi. They had threatened to kill him unless he pulled out -- his company pulled out of Iraq. The hostage's Kuwaiti employer has reportedly agreed to stop operations there.
Keeping you informed, CNN is the most trusted name in news.
Our top story today, we expect to hear from President Bush. In about an hour and 20 minutes from now, we expect to see him in the Rose Garden, the White House, talking about changes that might come in light of the 9/11 Commission Report. You'll see those comments live here on CNN.
Meanwhile, presidential candidate John Kerry unveils his blueprint for fighting terrorism and protecting America. That subject is on the minds and the lips of millions of Americans today, as they awaken to unprecedented precautions fueled by the nation's latest terror warnings.
Exhaustive intelligence meticulously researched not by the U.S., but against it. Newly discovered information revealing that al Qaeda has amassed precise data on buildings considered icons in the financial industry. The possible targets are in Washington, D.C., New York and nearby Newark, New Jersey.
We begin our coverage with Jeanne Meserve, she is in the nation's capital, Deborah Feyerick is at the New York Stock Exchange.
Jeanne, you first.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Daryn, U.S. officials are so concerned because of the credibility of this information, and its specificity, which officials say is unlike anything they've ever seen before.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): A truck going through a security check in front of the World Bank, as the financial sector in New York, northern New Jersey and Washington is moved to threat Level Orange.
Intelligence indicates al Qaeda is targeting specific buildings. In the capital, the International Monetary Fund and the World Bank. In northern New Jersey, Prudential Financial. In New York, Citigroup buildings and the New York Stock Exchange. And more may be named as intelligence received in the past few days is pursued and analyzed according to officials.
TOM RIDGE, SECRETARY, HOMELAND SECURITY: The quality of this intelligence, based on multiple reporting streams in multiple locations, is rarely seen. And it is alarming in both the amount and specificity of the information.
MESERVE: Senior intelligence officials characterize al Qaeda's reconnaissance information as chilling in its scope and breadth. It includes meticulous detail. Whether security guards are armed, the location of security cameras, traffic patterns and possible escape routes. Shops nearby that can provide cover to get more information. Building construction and what kind of explosives could do maximum damage.
It also details the configuration of parking garages, which kinds of vehicles are allowed, and when. Even the incline of garage entrances.
RIDGE: The analytical piece that's associated with this would suggest that based on what we've gleaned so far, the preferred method of attack, what's being suggested in the reporting, is car and truck bombs.
MESERVE: Officials say al Qaeda began its reconnaissance before 9/11, but probably continues it to this day. And though no time frame for attack is mentioned, officials remain concerned about the run-up to the November election.
(END VIDEOTAPE)
MESERVE (on camera): U.S. officials say the new information resulted from the arrest of an al Qaeda operative by Pakistan. Pakistani officials say he was a computer expert. U.S. officials say his arrest has produced a treasure trove of information -- a treasure trove that they are still mining for leads and information.
Back to you, Daryn.
KAGAN: Jeanne Meserve in Washington, D.C., we'll be back with you later in the morning.
Outside the Beltway, today began with a midnight ban on commercial traffic, using the Holland Tunnel to travel from New Jersey into Lower Manhattan. The ban applies only to commercial traffic and only inbound vehicles. Beginning last night, police rerouted all those Manhattan-bound trucks to either the Lincoln Tunnel or George Washington Bridge, which funneled traffic north of the Financial District.
And speaking of New York, we have with us right now Governor George Pataki joining us. He is at the New York Stock Exchange this morning.
Governor, thank you for taking the time to talk with us.
GOV. GEORGE PATAKI (R), NEW YORK: Good morning, Daryn. Nice being on with you.
KAGAN: Is there any new information, sir, you can give us about the latest alerts?
PATAKI: Not really. We all know what Secretary Ridge said yesterday. But we've always known that New York is a symbol of American strength and freedom. And that places like the New York Stock Exchange are always going to be targets of those who detest our freedom. No place is better protected, better prepared.
And you can see behind me, the people on the floor of the Exchange, they're working with confidence and in defiance. And that's the way New Yorkers and Americans are in the face of threats.
KAGAN: Well, and I imagine it's no accident that you're there this morning, Mayor Bloomberg, as well. Symbolic, perhaps, to show that it's important to go on with the daily life, even in the Financial District, which could be a target?
PATAKI: Well, I think it's important that the people who work here or come here know that the government officials are going to not just talk about protecting them, but be here and actually take concrete action. And the mayor has provided tremendous leadership.
As you said, New York City has been at a Level Orange since September 11. And now we're just ratcheting that up in specific sites and other areas around the city and around the state.
KAGAN: And I wanted to ask you about that. It has been at orange, unlike many parts of the country. So, why not raise it even to a higher color just for your city? PATAKI: Well, what the mayor refers to it as an "Orange Plus." And I think that's what it is, because we want people to go about their lives. We want them to live with the freedom and the confidence that they're entitled to have as New Yorkers, and as Americans.
And one of the weapons that terrorists try to use is, in addition to actual terror, it's fear. And we can't give in to that fear. So we want New Yorkers to continue to go about, go to the plays, go to the restaurants, certainly come to work at the Stock Exchanges and the other financial institutions in New York City.
And that's going to happen. And people should know that there is no place that is better prepared or taking tougher steps to protect the people than we are here in New York.
KAGAN: I think one thing that strikes people about this go- around is the specificity of this particular threat, and finding out exactly what the potential targets might be. From the background position where you sit, and the kinds of information you get, is this as much detail as threats in the past?
PATAKI: Well, it is much more detailed and it is much more specific and it is credible. In the past, we had had generic threats but not aimed at specific sites. But on the other hand, you always know, in the absence of any specific threat, that a symbol of American economic strength like the Stock Exchange will always be a target. So, it's not as though these are places that are surprised to hear about.
What is surprising is the level of detail and the level of specificity. But all it means is we've got to continue to do our job, to be proactive.
And by far, the best way to protect the Stock Exchange or those buildings in Washington that are threatened is to take the war of terror against those terrorists around the globe. Not just sit back and protect the building, but go after those who would attack us again. And that's what the president is doing. And this is going to be a long, difficult war. But we're Americans, we're tough and we're going to win that war.
KAGAN: Governor Pataki, thank you so much for your time, sir. I know it's a big day, especially in New York City. I appreciate your time.
PATAKI: Thank you, Daryn. Thank you.
KAGAN: New York City has kept its terror alert level at orange. You heard the governor mention that. It's been that way since the 9/11 attacks. But the precautions that are in place today are even exceptional for a city that is always on guard.
And for that, let's bring in Deborah Feyerick. She is outside the New York Stock Exchange, the heart of the nation's financial system, and a specific target that was mentioned in that intelligence.
Deb, good morning.
DEBORAH FEYERICK, CNN CORRESPONDENT: Morning, Daryn. Well, the head of the New York Stock Exchange made it very clear this morning that the Exchange is open, that even in the face of these new threats against financial institutions, that stocks will trade, that business will go on.
That is a message that was reiterated by New York City's Mayor Mike Bloomberg, who was at the New York Stock Exchange this morning to ring the opening bell.
Yesterday he told New Yorkers that the city will take no chances and spare no expense. Though he did say that there is no timetable on any of this information. That is, they don't know whether the information gotten two years ago or two days ago. So, that is a big unknown.
Now, trucks around Wall Street are being stopped and searched by police. Traffic, specifically commercial vehicles, as you mentioned, being rerouted away from Lower Manhattan, away from the tunnels that bring traffic from New York and Queens into this part of the city. Police presence is heavy.
But I'll tell you, Daryn, no more heavy than what we usually see in this area. People here very clear to point out that in fact this is a level they have been at since post-9/11.
Now, authorities right now trying to determine whether in fact the terror operatives who were here conducting surveillance actually moved past that phase, whether they are in place and ready to strike. The big concern right now, truck bombs and bombs that could be smuggled in backpacks -- Daryn.
KAGAN: And Deb, any way of telling how these threats might have kept some people from coming to work today? I know it's summer, so things are a little bit slower in New York City anyway. But do the crowds seem about normal for an early August Monday morning?
FEYERICK: Absolutely. Just before 9:00 this morning, there was just a stream of people heading into this area. People said that they were a little bit more nervous. But they are getting used to living with this kind of uncertainty. One woman did say, though, that this new information has definitely underscored her desire to stay home during the Republican National Convention, which is scheduled to take place at the end of August -- Daryn.
KAGAN: A big month for New York City. Deb Feyerick, thank you. More from you later in the morning as well.
Well, now to northern New Jersey. There is another identified target, the Prudential Financial headquarters. And evidence of that is on display. Employees reporting to work today will find two Newark streets blocked off. A new metal fence surrounding the building. Officers are both on the streets and the rooftops. They have been toting assault rifles.
In New York City, group employees received an e-mail warning to them of tighter security greeting their arrival this morning.
Outside there, our Mary Snow, outside the 59 story headquarters in Manhattan.
Mary, good morning.
MARY SNOW, CNN FINANCIAL NEWS CORRESPONDENT: Daryn, and certainly you can see the increased police presence here in midtown Manhattan outside of the Citigroup Center, one of the tallest buildings in midtown. For the members of the Hercules Unit, you may have seen these elite police officers outside the New York Stock Exchange. They are also here outside of Citigroup.
Certain entrances to the building were closed. There are two Citigroup buildings here. Entrances have been closed to consolidate the security forces. And also, bags have been screened. IDs carefully watched to match names and pictures. And there had been a long line going in this morning.
In terms of how many people showed up for work, spokesperson for Citigroup saying that the numbers haven't come in. A very unscientific result, I talked to one employee who told me that on his floor, there had been a lot of empty seats. He estimated about 60 to 70 percent full on his floor. But he also pointed out that people had been taking vacation, because this is August, of course.
And you know, in talking to the people who came to work today, in terms of how they felt, were they nervous, a number of them showing real resilience, saying that they had worked downtown during 9/11 and that this has become a part of life. And in their words, just another day. A number of them telling me that they took the subway to work today, a big subway hub right underneath these buildings.
And they had said that they were preparing, gearing up for the Republican convention. They knew security was being tight. They said they weren't surprised because this building is such a high profile building, that they were not shocked. Some saying that they were getting their emergency kits out First Aid kits that they had been handed out some time ago, and having family evacuation plans that they've rehearsed -- Daryn.
KAGAN: Mary Snow in Midtown, Manhattan. Thank you.
New York Mayor Michael Bloomberg is scheduled to hold a news conference at the top of the hour. We do plan live coverage of that.
Also getting word that President Bush will speak just over an hour from now, 11:20 a.m. Eastern/8:20 Pacific from the Rose Garden of the White House. We will have those comments for you live right here on CNN.
Much more news ahead after this break.
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KAGAN: As we expect, just about an hour from right now, we think that President Bush will be speaking at the White House. What does he have to say?
Let's bring in our Suzanne Malveaux with a preview -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, President Bush is going to be in the Rose Garden. And he is going to be there with his national security officials, as well as Homeland Security officials to announce the 9/11 Commission recommendations that he is signing off on. White House spokesman Scott McClellan, just moments ago, saying that he president essentially signing off on almost all of them.
The key ones is the creation of a national director of intelligence. This is one individual who essentially would oversee not only the CIA, but 14 other intelligence agencies, as well as perhaps even control the budgets of all of those agencies reporting directly to the president.
The big caveat here, however, is that the administration does not approve that this individual would be within the executive office, would work within the White House. They would have a direct line to the president, but not within the executive office.
That is because they feel that this would compromise that person's independence and autonomy, when it comes to dealing with intelligence. That also it would create a situation where the president could be accused of perhaps manipulating intelligence, promoting his own policies. And also would make that person essentially have to endure a congressional oversight. That is simply something this administration is not willing to do. So, that is what we are expecting.
They're also going to sign off on another major recommendation. That is the creation of a national counter terrorism group outside of the national security counsel. One a center that essentially will integrate much of the information that is spread out through so many different departments as it exists now.
Now, we are told there are several recommendations the president can sign off by executive order, that that is something that within the coming days you'll actually, they say, see some changes. Changes will be made as soon as he signs those orders -- that is, in terms of creating greater funding, greater emphasis on human intelligence. Also creating better national standards for identification, like driver's licenses, better sharing of intelligence -- those types of things.
But also the administration saying that a lot of these recommendations, they believe, that the president has already initiated. They believe the administration has already made it a top priority. Daryn, the political background, the context of all of this, of course, is both President Bush and his opponent John Kerry are trying to position themselves as the one who essentially is doing the better job of ensuring national security. And that signing off on those 9/11 Commission recommendations is a big part of this.
Kerry, endorsing the full package, he says. President Bush, today we expect him to say that he's endorsing most of it.
KAGAN: And we will look for that. Exactly one hour from right now, we'll be back with you. Suzanne Malveaux, thank you.
And a reminder that the president will be speaking from the Rose Garden of the White House at 11:20 Eastern. You'll see those comments live right here on CNN.
Meanwhile, the convention bounce: Did it work for the Kerry Edwards ticket? Find out when we check in with our Bill Schneider.
Also protecting your investments during an increased terror threat. Our Gerri Willis is there for us.
Hi, Ger.
GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. We'll tell you what you need to know, what to do, what not to do when CNN LIVE today returns.
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KAGAN: Key financial institutions in New York, Washington, and northern New Jersey are operating under increased security, after a new terrorism warning. What does this mean for investors and the nation's financial markets?
CNNfn's personal finance editor Gerri Willis is in New York with today's "Top Five Tips."
Hey, Ger.
WILLIS: Hey, Daryn, good to see you. My first tip today, you probably could have guessed it, it's don't panic. Look, even if there were a bomb to go off at the NYSE or elsewhere, it would be a tragedy but it would not stop the financial markets. You're still going to be able to cash checks and go to ATMs.
The reason for that? After 9/11, all of these financial institutions came in and put into place what they call Redundant Systems. Backups to make sure that if the bricks and mortars fail, there's an electronic system that will come in and pick up the slack. So you don't have to worry about the system itself. It shouldn't fail here.
KAGAN: So, some people are going to feel the need to go out and sell. But you're saying to resist that urge?
WILLIS: Yes, resist the urge. Interesting, there were a lot of predictions that the markets would fall dramatically this morning. And while they're off a little bit, they haven't fallen dramatically. A lot of people already taking this advice don't sell out.
Because at the end of the day, you can't control the price you're selling at if you're selling willy-nilly. So make sure you keep your head, your wits about you, and hang on to what you've got to see what happens next.
KAGAN: Oh. Well, and there are things you can do, like making sure all your files are ready to go?
WILLIS: Exactly. Instead of panicking, your best bet is to make sure you have all your financial ducks in a row. Make sure you've got copies of that 401(k) statement, your banks statements. If you bank online, it's even easier. You can just print those out this morning, makes a lot of sense. Make sure you have copies on hand.
KAGAN: And then that's not the only financial record you want to check.
WILLIS: Exactly. You want to maintain good habits. Remember that you want to make periodic checks on your investments, and make changes only periodically instead of all the time. The markets were closed for four days after 9/11. And after that, I think people rushed into the market and did a lot of selling. But you're better off making those changes only periodically, maybe once a quarter, to make sure that your asset allocation is in line.
KAGAN: And in terms of being ready, we heard Mary Snow actually mention this, what some folks in Midtown Manhattan are doing. And that is to have a plan in case something goes wrong.
WILLIS: Yes. If you happen to be in one of these cities, Daryn, it makes a lot of sense to have a disaster plan with your family. That means if something happens, you know where you're going to meet up. Keep in mind to that cell phones did not work after 9/11, or they worked periodically, sporadically. Make sure you have got some LAN line numbers in place.
And if you're not in one of these areas, do what you can to keep your family safe. Make sure you've got the right home insurance, life insurance, those kinds of things. At the end of the day, don't panic. Plan ahead -- Daryn.
KAGAN: I think it was almost a year ago that the blackout took place in New York City, and the cell phones didn't work either. So don't rely on that.
WILLIS: Right. They're not too helpful sometimes.
KAGAN: Gerri, thank you.
WILLIS: Thank you.
KAGAN: Gerri Willis, we'll see you later in the week.
Heading out across eight states, John Kerry takes his new message on the road. We'll hear what the Democrats are planning for America straight ahead.
Later, a mysterious animal lurking in the woods. Can you tell what kind of animal this is from the picture? If you can't, you're not alone. Stay with us for the answer. (COMMERCIAL BREAK)
KAGAN: Let's take a look at what's in the news right now.
President Bush says he will support the creation of a National Intelligence Director and the establishment of a National Counterterrorism Center. But not exactly as the 9/11 Commission was proposing. A senior adviser says Mr. Bush wants to keep them outside of the executive office of the president. President Bush is expected to make that announcement at 11:20 Eastern. CNN will carry those comments live.
Other stories in the news right now. Five of the nation's most important financial centers are under extremely heavy guard this morning, after intercepted intelligence suggested they could be targets of al Qaeda. They include the New York Stock Exchange, and the Citigroup headquarters in Manhattan, the International Monetary Fund and the World Bank buildings in Washington, and the Prudential Financial building in Newark, New Jersey.
Fears over the possible terror strikes and the disruption of supplies have driven the price of crude oil to record levels. Crude prices are more than a third higher than they were one year ago today. We'll have a report from the New York Stock Exchange on exactly that in just a few minutes.
Freedom could come this week for Mary Kay Letourneau. She's the schoolteacher who had a longstanding affair with a student and went to prison for it. The affair began when the boy was 12. And now at 21, he says he's not sure what will happen next with them or the two children from that relationship.
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