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American Morning
White House Welcome for the Obamas; Obama to Reverse Some Bush Executive Orders?; Citigroup Mortgage Rescue to Help Homeowners; Palin Pushes Back; Closing Guantanamo Bay; Bush and Obama Discuss Transition
Aired November 11, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: One minute now to the top of the hour. And here are this morning's top stories. 55 days in a row now, gas prices on the decline. AAA says the national average for a galloon of regular is down to $2.22. Four states are reporting average prices under $2 a gallon now. Ohio, Oklahoma, Missouri and Indiana.
Using Iran to get to Bin Laden. That could be part of Barack Obama's new approach to the war on terror. "The Washington Post" reporting this morning that the President-elect is considering talks with Iran as he refocuses military efforts on fighting Islamic extremists in Afghanistan and on finding the al Qaeda leader.
Scalping tickets to the inauguration soon could be a federal crime. Senator Diane Feinstein who oversees the swearing in ceremony says she is going to try to rush legislation with fines for selling the tickets. They are supposed to be free to the people. Some brokers, though, are charging people more than $13,000 a ticket to be a part of history.
CHETRY: There are also some new details this morning on Barack Obama's first visit to the Oval Office after two years of campaigning on President Bush's "failed policies." The two men talked about the pressures of the job and a world of problems when they met.
Also today, there's some new information on Barack Obama's plan to move fast on fixing the economy, another campaign promise. It's being called the big bang.
White House correspondent Ed Henry is live for us on the North Lawn this morning with details.
Hi, Ed.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, good morning, Kiran. There are some Obama advisers who think he should scale back some of his plans because of the financial and budget crisis. There are other advisers who say move full steam ahead because of his mandate from the election. They want to move forward on things like a second stimulus plan, an issue that Obama pressed with the president here yesterday.
(BEGIN VIDEOTAPE)
HENRY (voice-over): President Bush had predicted a stirring sight when the first African-American president-elect arrived at the White House, and he was right as both men appeared committed to healing any lingering tension from the sometimes bitter campaign.
DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: They're being gracious about it. And I think you're going to see an unusual degree of good spirit.
HENRY: So much excitement that people literally pressed their noses up to the gates to try and get a glimpse. Hours before, the two leaders took the long walk alone for the future president's first-ever visit to the Oval Office which lasted more than an hour as they discussed the financial crisis and national security.
DANA PERINO, WHITE HOUSE PRESS SECRETARY: I don't think any of us can understand what it's like between -- for two people who are now going to be in a very small club, who understand what it's like to be the commander in chief.
HENRY: An unlikely alliance, but the two men forged something of a bond at their first White House meeting in 2005 at a reception for freshman senators. The president warned Obama to get ready for the increased scrutiny, advise that proved prescient. And now, the two men have an incentive to work together.
GERGEN: Automobile sales are down to the worst level in a quarter of a century. This is very serious stuff. And I think you'll see Bush and Obama working well together in the next few weeks.
HENRY: They also want to cooperate because this is the first handoff since 9/11, and both men know there were terror attacks in Spain and Scotland during transfers of power.
PERINO: We really want to make sure that we work with them through joint exercises, through providing briefings so that when we hand the baton to them they are able to move forward and continue to protect the country.
(END VIDEOTAPE)
HENRY: Now beyond the substance of their meeting in the Oval Office which lasted more than an hour, the two men also joined their wives up here in the White House residence to get a tour, specifically President Bush pointed out the rooms where Barack Obama's daughters are very likely to be sleeping. I can tell you one Obama adviser said that the president-elect was very touched by the president being so gracious with his time and speaking not just as a president but as a father, Kiran.
CHETRY: Very, very interesting to see the two of them together after all the words that were said on the campaign trail.
Ed, you covered the White House for a very long time. Have you ever seen that much excitement around an incoming president?
HENRY: Now I can tell you, there were literally people outside those gates here, you know, trying to get a glimpse of it. They were far away, so they couldn't really see. It's been a long time, obviously. You've got a lame duck president. There have been a lot of people wait here. Not a lot of excitement. All of a sudden with the president-elect coming yesterday, you could just feel history right before your eyes, Kiran.
CHETRY: Ed Henry for us this morning at the White House. Thanks.
JOHN ROBERTS, CNN ANCHOR: Every president uses executive power to change the rules and put his own stamp on the office. For President- elect Obama part of that is likely to be undoing some of President Bush's controversial executive orders.
Jim Acosta is looking at what could be on the chopping block for us this morning -- Jim.
JIM ACOSTA, CNN CORRESPONDENT: John and Kiran, President Bush once referred to himself as the decider and he did plenty of deciding when it came to issuing executive orders on all sorts of policies. Well, now, there's a new decider coming to town and he plans to make a few executive changes of his own.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): Barack Obama and George Bush took those historic steps at the White House, but the president-elect wasn't just there to measure the drapes. He and his transition planners are taking aim at a slew of presidential executive orders issued by Mr. Bush during his eight years in office.
DANA PERINO, WHITE HOUSE PRESS SECRETARY: Every president has the prerogative to change policies. That's nothing unusual.
ACOSTA: Change is putting it mildly. The Obama team plans to reverse many Bush policies, like the ban on federal funding for embryonic stem cell research and the plan to open up oil and gas drilling in previously protected areas in Utah.
JOHN PODESTA, CO-CHAIR, OBAMA TRANSITION TEAM: Across the board on stem cell research, on a number of areas, you see the Bush administration even today moving aggressively to do things that I think are probably not in the interest of the country.
ACOSTA: Advocates for embryonic stem cell research cheer that statement saying new funding is critically needed in the fight against Parkinson's disease.
AMY COMSTOCK RICK, COALITION FOR ADVANCEMENT OF MED. RESEACH: We have every reason to believe that if not on day one in very short order, they will be issuing an executive order rescinding this policy.
ACOSTA: But reversing presidential policy isn't that new. One order issued by President Bush that blocks funding to foreign aid groups that provide abortion counseling was actually a reversal of the Clinton administration's policy, which was a reversal from the Reagan administration. UNIDENTIFIED MALE: Until President Obama gets rid of all these executive orders, he'll be sharing his presidency with his predecessor. Now that's a particularly obnoxious thought for an administration that was elected for change.
ACOSTA: Then there's President Bush's controversial use of so-called signing statements to declare his disapproval of portions of laws passed by Congress. During the campaign, Obama accused Bush of misusing those statements.
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I believe in the constitution, and I will obey the Constitution of the United States. We're not going to use signing statements as a way of doing an end-run around Congress.
(END VIDEOTAPE)
ACOSTA: One of the thorniest issues awaiting the new president is Guantanamo. Obama is under pressure to use an executive order to close the prison for suspected terrorists. He had promised to do so as a candidate. Now, he has to figure out how to do it as president -- John and Kiran.
ROBERTS: Jim Acosta in Washington this morning. Jim, thanks.
While John McCain has been keeping to himself since the election, Sarah Palin is talking quite a bit to the press. Initially, she was vague about a possible run for the presidency in 2012, but now Palin seems to say she is considering it.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: If there is an open door in 12 or four years later, and if it's something that is going to be good for my family, for my state, for my nation, an opportunity for me, then I'll plow through that door.
(END VIDEO CLIP)
ROBERTS: Palin is also being quite frank about why she and John McCain failed to win the election.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: There was such a desire for change across the nation. I mean that was -- that was the given was change was going to be ushered in and I think the Republican ticket represented too much of the status quo, too much of what had gone on in these last eight years that Americans were kind of shaking their heads saying, wait a minute, how did we run up a $10 trillion debt in a Republican administration? How have there been blunders with war strategy under a Republican administration?
(END VIDEO CLIP)
ROBERTS: And that's not all. Carol Costello will be here in about 10 minutes time to give us the latest from Palin on allegations that she thought Africa was a country.
CHETRY: Also this morning, we want to wish all of those in uniform past and present a very happy Veterans Day. Here's a live look right now at the newly renovated USS Intrepid in New York's Pier 86.
It's been gone for 19 months and were going $120 million overhaul. And President Bush will be in the city later today to formally rededicate the decommissioned aircraft carrier. It's now a military museum. The naval pilot, by the way, Senator John McCain, also flew missions from that carrier.
A new administration means new Secret Service code names so what will the president's new security team call members of the first new family? Well, here's a hint. Every Obama's code name starts with "R."
First, though, a Veterans Day greeting from Afghanistan.
It's seven minutes after the hour.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Hi. I'm Ensign Shawn Graham (ph) currently assigned as (INAUDIBLE) security transition command in Afghanistan in Kabul.
I would like to give a Veterans Day shout-out to all the members of my family who served in the Army and Marine Corps and the Navy, and especially my wife, a veteran of the U.S. Army. Thank you for all your service to our country.
(COMMERCIAL BREAK)
ROBERTS: Ten minutes after the hour. We've got breaking business news for you this morning. Our Christine Romans is here tracking it all, "Minding Your Business."
Good morning to you.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Good morning. Well, if you have a mortgage held by Citigroup, you might be getting a letter in the mail over the next six months if you are not behind but you live in one of those areas that has high unemployment and rising foreclosures. Citi wants to talk to you and Citi wants to see about maybe reworking your mortgage so that you don't fall behind. This could affect some 500,000 mortgages in the end. It's about $20 billion worth of mortgages they're talking about.
Let's take a look at what they're doing. They want to -- they want to extend a moratorium on foreclosures. They want to reach out to about half a million homeowners and work out these loans totaling $20 billion. You don't necessarily --
CHETRY: Some people were calling for six months ago.
ROMANS: You know what? You're absolutely right. CHETRY: The same thing happened so they wouldn't go into foreclosure.
ROMANS: And you know, it's really expensive for these banks when people lose their homes. It's expensive for the person and it's expensive for the bank, and they're trying to stop this foreclosure crisis.
ROBERTS: But they were able to do this because they're getting money from the federal government, right?
ROMANS: They're getting money from the federal government. Citi is alive (ph), the other ones are too, but it behooves them to try to stop the cycle because it just costs them so much when it happens. You've seen Bank of America, JPMorgan Chase, IndyMac all talking about it.
You must be - it must be your primary residence. You must be working in good faith with Citi. In some cases, people are already so behind and they can't work it out. But something I think is interesting about this. If Citi wants to, you know, work it all together, reduce the monthly mortgage payments for people who are on the verge of being on default but have not yet defaulted, they want to lower it to 40 percent or less of their income.
Think of that -- 40 percent or less of their income. A lot of people did not, you know, abide by those rules of thumb during that whole boom and so now we're trying to get back to a more normal level. So you might want to take a look at what your own housing expenses are relative to what your mortgage payment is.
Now, another story we want to bring you later in the hour, AIG. There is an affiliate of ours, KNXB, reporting that last week there was another big AIG executive boondoggle at a posh resort in Phoenix. I'm working on getting the video for you, but this is, after the first $85 billion bailout and before this new and improved bailout from yesterday. We're working on that one for you, but an affiliate reporting on that.
ROBERTS: We had the CEO, Ed Liddy, in here a couple of weeks ago saying no more.
ROMANS: Well, according to the pictures...
CHETRY: They didn't get the memo.
ROMANS: ... there was a big AIG executive retreat.
ROBERTS: Worth about a tune of $350,000?
ROMANS: We have to see, yes.
CHETRY: We need to see the video of the ice sculptures.
ROMANS: Yes. Exactly.
CHETRY: And now (ph). ROBERTS: Thanks, Christine.
Twelve and a half minutes after the hour.
At home with Sarah Palin.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: That was the given was change was going to be ushered in.
(END VIDEO CLIP)
ROBERTS: The former candidate cooks up some moose chili and serves up some shots at the sitting president.
(BEGIN VIDEO CLIP)
GOV. SARAH PALIN (R), ALASKA: How did we run up a $10 trillion debt in a Republican administration?
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. It's quarter past 7:00 here in New York.
Sarah Palin spending part of her first weekend off the campaign trail going through her wardrobe. She said she was trying to sort out what belongs to the RNC after it paid $150,000 for outfits for the vice presidential run.
And Sarah Palin is giving back and also pushing back. She's now responding to those unnamed McCain campaign aides who tried to throw her under the bus for his Election Day loss.
AMERICAN MORNING's Carol Costello joins us now from Washington with more.
First, last week she called them jerks. What's she saying now?
CAROL COSTELLO, CNN CORRESPONDENT: She's saying a lot, Kiran. You know, for a governor VP candidate who often slams the elite liberal gotcha media, Sarah Palin is certainly using it now. She's agreed to a ton of interviews starting with our Gary Tuchman. She'll talk with Wolf Blitzer. She'll talk with Larry King, and she's talked with FOX News.
She is fighting back against the ugly things that are being said about her, including that particularly ugly allegation about Africa.
(BEGIN VIDEO CLIP) GOV. SARAH PALIN (R), ALASKA: I remember the discussion about Africa. My concern has been the atrocities there in Darfur and the relevance to me with that issue as we spoke about Africa and some of the countries there that were kind of the people, coming to the dictators and the corruption of some collapsed governments on the continent.
The relevance was Alaska's investment in Darfur with some of our permanent fund dollars, I wanted to make sure that that didn't happen any more. So we discussed what was going on in Africa. And never, ever, did I talk about well, gee, is it a country or is it a continent? I just don't know about this issue. So I don't know how they took our one discussion on Africa and turned it into what they turned it into. I don't even know who did, though, you know, so it's hard to --
(END VIDEO CLIP)
COSTELLO: 2012, Palin did not rule out a run. She says if it's good for her family, she will think about it. And remember her running mate, that guy, John McCain? Well he will be on Jay Leno tonight, Kiran, and maybe he'll be able to shed some light on exactly who spread that rumor about Sarah Palin and Africa.
CHETRY: All right. Carol Costello, thanks so much.
Well, Governor Palin will also be Wolf Blitzer's guest on "THE SITUATION ROOM." It's this afternoon. "THE SITUATION ROOM" gets underway at 4:00 Eastern time -- John.
ROBERTS: Barack Obama promised swift departures from the policies of his predecessor including shutting down the Guantanamo Bay detention center. But that is a lot easier said than done. We'll tell you why just ahead.
And it was political dynamite that almost got Congress and our economy dead. So after all the fuss, what happened to the hundreds of billions of dollars from that bailout bill? We'll find out.
Eighteen minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Twenty minutes after the hour now, and time to fast forward to stories that will be making news later on today.
A busy day for NASA ahead of the scheduled launch of the Space Shuttle Endeavour on Friday evening, part of a 16-day mission to the International Space Station at 10:00 a.m. Eastern. There is a status briefing. 4:00 p.m. the crew arrives at the landing facility and at 10:00 p.m. tonight, the launch countdown begins.
Today is of course Veterans Day. There will be the traditional wreath laying ceremony at the Tomb of the Unknowns at Arlington National Cemetery. Events there begin at 11:00 a.m. Eastern.
President Bush will rededicate the USS Intrepid Museum at Pier 86 here in Manhattan. He'll speak at 11:30 Eastern. And our Heidi Collins will be broadcasting from there beginning at 9:00 this morning.
And President-elect Barack Obama back in Chicago today. He's expected at a wreath laying on this Veterans Day. Obama had a secret meeting, by the way, at the firehouse at Reagan National Airport before leaving Washington, but we don't expect any cabinet announcements for the rest of this week. Maybe some staff announcements, though.
That's what we're following this morning -- Kiran.
CHETRY: All right. John, thanks.
Well, now to the "Most Politics in the Morning" right now. As part of the promised change for many of President Bush's policies, President- elect Barack Obama is promising to shut down the detainment camp in Guantanamo Bay, Cuba. But as our justice correspondent Kelli Arena found out, it is actually easier said than done.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN JUSTICE DEPT. CORRESPONDENT: It won't be easy and the pressure is on. What to do with those 255 men still locked up in Guantanamo Bay? Here's what President-elect Barack Obama told CNN just days before the election?
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We have to put in place appropriate plans to make sure that they are tried, convicted and punished to the fuel extent of the law.
ARENA: Under plans being considered by Obama's camp, detainees would not be subject to military commissions now in place but would be tried in U.S. criminal courts.
JENNIFER DASKAL, HUMAN RIGHTS WATCH: The U.S. court system is a system that has had the most experience dealing with international terrorists.
ARENA: But there are huge problems. Some Gitmo detainees have been in custody for years and were subject to harsh interrogation techniques.
COL. MORRIS DAVIS, FMR. GUANTANAMO CHIEF PROSECUTOR: Some of those techniques clearly had a useful purpose for collecting intelligence but in my opinion went too far for use in an American court of justice in the criminal proceedings.
ARENA: And conservatives don't like the idea of bringing dangerous terrorists to the U.S.
DAVID RIVKIN, FMR. REAGAN ADMINISTRATION LAWYER: There ain't no place in the United States that can replicate the sort of operational security features that Guantanamo has.
ARENA: Some detainees are likely to be released.
DASKAL: The detention of several men without charge becomes a terrorist recruiting tool and it's caused the United States much more harm than it has good.
ARENA: But once free, the U.S. can't control what they do.
DAVIS: Clearly, there have been examples of some individuals that we determined were no longer a threat that went back and did bad things.
ARENA: Perhaps the most controversial part of what's being considered, the creation of a new national security court to deal with the most sensitive intelligence cases.
ARENA (on camera): The Obama team says no final decisions have been made and won't be until the president-elect's national security and legal teams are in place.
Kelli Arena, CNN, Washington.
(END VIDEOTAPE)
ROBERTS: And just into AMERICAN MORNING, a news helicopter making a hard landing in south Florida. These are brand new pictures from Boynton Beach. It's not completely clear why the helicopter went down, but it may have lost the tail rotor which then would send the helicopter into -- you know, without that stability in the back it would start to rotate around and around and around, which would have allowed the chopper pilot to make what looks like a hard landing but still a fairly safe one using a procedure called auto rotation.
Let's the whole helicopter come down. It comes down a lot more easily than it would under ordinary circumstances. You can see there the tail section is completely broken off.
Two people were on board. They suffered minor injuries. We'll keep watching this for you. News 12, that's CBS affiliate there went down in Boynton Beach, Florida. We'll try to get you some more information. We'll bring more as we get it.
Twenty-four minutes after the hour now.
CHETRY: Memo to the president. How to deal with rogue nations.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Develop better carrots and better sticks in dealing with these hard cases.
(END VIDEO CLIP)
CHETRY: Advice for the president-elect on standing up to the country's biggest threats.
You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most News in the Morning." Barack Obama and President Bush meeting for almost two hours in the Oval Office yesterday. President Bush trying to smooth the transition of power that will take place in 70 days.
Our next guest says the president deserves an enormous amount of credit for his efforts with President-elect Obama. Joining me now is "Time" magazine's national political correspondent, Karen Tumulty.
Let's get into the nuts and bolts of the transition in a second, Karen. But President Bush predicted it was going to be a stirring sight when Barack Obama and his wife Michelle arrived at the White House. Indeed, it was. What was your take away from the meeting yesterday?
KAREN TUMULTY, NATL. POLITICAL CORR., "TIME": Well, I was really struck by how comfortable everybody looked. I mean, given that it was only a week ago that, you know, that Barack Obama was hammering George Bush for his "failed policies," everybody looked really happy and comfortable. And I especially was struck by Laura Bush and Michelle Obama. I mean, it just was this, this scene of such familiarity for people who really don't know each other.
ROBERTS: Now why do you say that President Bush deserves enormous credit?
TUMULTY: Well, I think that, you know, we've seen over and over again in our history how difficult transitions and how uncomfortable they can be particularly when it is one party giving up power to another. And I think that no one probably could understand better than George Bush how important it is to have a smooth transition because he didn't get one.
ROBERTS: Right.
TUMULTY: Dick Cheney was quite literally sitting in his kitchen table planning out the staffing and structure of federal agencies while the Florida recount was going on. And I think too that George Bush understands that part of his place in history is going to be how he manages this at a time of enormous financial crisis and threat abroad as well.
ROBERTS: And, of course, the famous stories too of the W's being removed from all the computer keyboards, telephone handsets being glued to their cradles as well by the outgoing members of the Clinton administration.
Stephen Hess of the Brookings Institution wrote this about President Bush and the way that the administration is handling things. He said, "I'm not sure I've seen an outgoing administration work as hard at saying the right thing. This is really quite memorable."
And Stephen Hess should know because he's followed every transition since Eisenhower exquisitely closely.
TUMULTY: And again, you know, given where the country is and the stress on the economy, it's so important. We have seen time and time again too that how a transition works often is the launching pad for the entire first year of a presidency. And if you don't get this right your job for the next year, even two is going to be much, much more difficult.
ROBERTS: And, you know, of course, Karen, we talked about this being a very critical transition because this is the first post-9/11 transition. We've got two wars going on, Iraq, Afghanistan as well as the war on terror.
And we hear that White House Chief of Staff Josh Bolton says that they are preparing a "tabletop exercise" for incoming members of the Obama administration and the national security side where they'll run a simulation so that they're up to speed on all of the operations of the White House and the government so that God forbid, in case something happened on the afternoon of the 20th, or the next couple of days they'd know how to respond to it.
TUMULTY: Well, I was looking back yesterday at the 9/11 Commission Report. And this was one of the things that they stressed is that this absolutely has to be --
JOHN ROBERTS, CNN, ANCHOR: ...the White House and the government so that god forbid in case something happened on the afternoon of the 20th or the next couple of days they would know how to respond to it.
KAREN TUMULTY, FMR. WHITE HOUSE CORRESPONDENT, "TIME": Well I was looking back yesterday at the 9/11 commission report and this was one of the things that they stressed that this absolutely has to be handled correctly. You know, it's important to remember that, you know, at the time that 9/11 happened, the Bush administration didn't even have a lot of their key national security personnel confirmed. So, they really do need to make sure that this is absolutely seamless.
ROBERTS: Karen Tumulty from "Time." It's always great to talk to you. Thanks for joining us this morning.
TUMULTY: Thanks, John.
ROBERTS: See you again soon.
KIRAN CHETRY, CNN, ANCHOR: 7:30 here in New York. A look at the top stories. Not enough money for the fancy coffee in today's economy apparently. Starbucks reporting their fourth quarter profits fell 97 percent to a just more than $5 million or a penny a share. And on the flipside of that, the dollar menu is doing great. McDonald's said sales are on a record pace in October, rising about 10 percent from Australia to Africa and the Middle East.
And a stand off happening as we speak in the dangerous waters off Somalia. Pirates there armed with automatic weapons hijacked a Philippines chemical tanker. 23 crew members are on board. So far this year 33 ships have been hijacked in the region. 12 still being held by pirates.
Among the most important challenges facing America's new President- elect, how to deal with countries considered dangerous to the United States. Zain Verjee continues our series, "Memo to the President" with a look at some of the diplomatic challenges facing Barack Obama.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN CORRESPONDENT (voice-over): Mr. President, on the diplomatic radar two nations the U.S. considers rogues, Iran and North Korea, the most menacing. The choices, confrontation backed by military threats, or pressure and persuade as the U.S. did with Libya's Moamar Qaddafi, getting him to turn away from terrorism and weapons of mass destruction. Robert Litwak has studied so called rogue nations and says a new president must avoid mixed messages.
ROBERT LITWAK, WOODROW WILSON INTERNATIONAL CENTER: Make clear that the U.S. objective is to change the behavior of the regime and not the regime itself.
VERJEE: The challenge with Iran, make its leaders like President Mahmoud Ahmadinejad comfortable enough to step back from the nuclear brink and to negotiate. There could be an opening to talk. Iran is feeling the pinch of lower oil prices. Elections are around the corner. And if an offer to talk is rebuffed.
LITWAK: Develop better carrots and better sticks in dealing with these hard cases and to go allies for meaningful sanctions against they two states if they should continue to not comply with international norms.
VERJEE: On North Korea, the question is how hard do you push Pyongyang to finally comply with the current deal to dismantle its nuclear program and reveal all its nuclear secrets?
UNIDENTIFIED MALE: He won't have to start at ground zero. He can take the negotiations where they left off and hopefully have a complete agreement before too long.
VERJEE: Close to home two states also considered rogues. There's a chance for a breakthrough moment in Cuba. Will the trade and travel embargo be lifted after decades of isolation? And Venezuela, Hugo Chavez has been a thorn in the U.S. side. Should the U.S. accept the offer for talks with the authoritarian leader?
(END VIDEOTAPE)
VERJEE: Danger may be lurking in the friends' column as well like Saudi Arabia and Pakistan, both allies in the war on terror but they also breed extremism. So the President-elect is going to have to navigate very carefully even with his allies. Kiran.
CHETRY: Yes, tough road ahead for sure. All right. Zain Verjee for us this morning. Thanks so much.
And by the way, to see all of our "Memos to the President" online, you can log on to CNN.com/am. It's 33 1/2 minutes after the hour. Rob Marciano is checking the forecast for us today. He is going to be up in just a second but he is right now with a sneak peek. Hey, Rob.
ROB MARCIANO, CNN, METEOROLOGIST: Hey, John. Big mess in the weather map in the central part of the country. It's all heading to the east. It's got a severe weather to the south with a mixture of rain and sleet. Freezing rain and snow to the northeast. Will you get a piece of that? We'll talk about it when "the most news in the morning" comes right back. It is 34 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: 36 1/ minutes after the hour. Good afternoon, London. Partly cloudy at 51 degrees there right now. That's the way it will stay for the rest day. It's probably the way it will stay for the rest of the year as a matter of fact. And how are things looking here on this side of the pond? Our Rob Marciano is now at the weather center in Atlanta. Hey, Rob, good morning.
MARCIANO: Hi, John. It's not too often that we get our tower cam abroad. It's a nice shot of London. Love it. We got some chilly air although not London like fog or rain across the northeast. Temps in the 30s. 26 degrees in Chicago. So certainly feeling more like closer to winter at least. We got a winter storm. That's to the west. Up and down the Mississippi River Valley, almost to the Canadian border. It's a big and it's causing some problems across Dallas. Severe thunderstorms potentially today especially south of Dallas heading towards the southeast, towards Houston getting in to Arkansas, Mississippi and Louisiana. Memphis to St. Louis, we're seeing some rain this morning and the snows, yes up across parts of Nebraska and into Iowa as well. Some storm preps out of Des Moines, prepping for this thing as it heads to the east.
Yes, they have the salt shakers out there and the brine mixture. Some of these brine laid down on the roadways especially in the bridges. It could drop the freezing temperature from 32 all the way down to 20 in some spots. So that's a great of help. They got about two million gallons of it on tap ready to go there and they're going to be using that, I'm sure for a good chunk of the winter.
So here it is in the weather map. Again, severe weather down across the south. Nice across the northeast. You'll get by the way a piece of this northeast not today but veterans day is going to be really nice. But I think the day after tomorrow is when this thing gets to you and the next storm system rolling into the Pacific Northwest. That's going to be a busy. High wind warnings posted for parts of Seattle and Portland. It will be 51 degrees with mostly sunny skies with festivities in New York City. John, back up to you.
ROBERTS: Rob, thanks so much for that. We'll see you again soon. All right.
CHETRY: Well, a new administration means a lot of changes at the White House and that goes for the Secret Service as well including new first family code names. Now these used to be top secret. Now they're all just for fun. All the Obama's have names beginning with R. Barack Obama is Renegade. Michelle is Renaissance. The daughters Malia and Sasha are Radiance and Rosebud. And Vice- president elect Joe Biden was given Keltic and his wife, Jill, Capril.
Well David Letterman scooping the media tells us what President-elect Obama and President bush talked about yesterday during their meeting in the Oval Office.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST "THE LATE SHOW WITH DAVID LETTERMAN": The category tonight, the top ten things overheard during the Bush-Obama meeting.
Number 10, are you sure you want this job? Number nine, Actually sir, I do mind if you Barack-odile Dundee. Number eight, let me know if you want the Secret Service to frisk you for fun. Number seven, I appreciate the offer but you can take the spittoons with you. Number 6, Honest opinion: Would it be a mistake to pardon Amy Winehouse. Number five, Is that Roger Clinton sleeping on eh sofa. Number four, the red phone is for talking to world leaders. The blue phone is for ordering Domino's. Number three, when there is a big crisis you might be here as late as 4PM. Number two, other than the economy, Iraq, Afghanistan, Iran, the deficit, the crumbling infrastructure, our energy policy, gitmo and global warming, is there anything else I need to fix? And the number one thing overheard during the Bush-Obama meeting, when can you start? There you go.
(END VIDEO CLIP)
ROBERTS: OK. So four through 10 were fillers but one to three were pretty good.
CHETRY: All right. Well, let's check over with Christine Romans at the business desk right now. Following things for us, the crumbling economy. Hey that's one thing that he has to make sure he puts at issue number one just like our viewers have. Hey, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hi there, Kiran. That's absolutely right. You know that $700 billion bailout, it was controversial from the very beginning. Just what is your government doing with your money and is it working. It's 19 minutes to the top of the hour.
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CHETRY: Welcome back to "the most news in the morning." Treasury Secretary Henry Paulson helped draft it, Congress amended it and voted for it and then the President signed it into law. So you think it's going to be finish by now but we're still seeing day after day the $700 billion bailout plan keeps changing. Christine Romans is "Minding your Business" this morning and tracking your tax dollars. Can you really track this?
ROMANS: Well, you can try to check it, indeed. You know it was controversial from the very beginning and the bailout changes by the week and it raises concerns among taxpayer advocates and some in Congress.
(BEGIN VIDEOTAPE)
ROMANS (voice-over): Let's start from the beginning. The bailout was sold to Congress as life or death for the American economy. Behind closed doors the Fed chairman and Treasury Secretary made the case to top lawmakers, get toxic mortgage related assets off the banks books or else. Senator Chris Dodd was there.
SEN. CHRIS DODD (D), CHAIRMAN BANKING COMMITTEE: There was a pause for about 10 or 15 seconds when nothing was said. The air came out of the room.
ROMANS: The deal was signed, sealed but to this day not delivered. The government has not bought up those bad assets. Instead the nature of the bailout has changed dramatically.
RYAN ALEXANDER, TAXPAYERS FOR COMMON SENSE: It's not clear that we're getting what we thought we were getting for that $700 billion.
ROMANS: Instead, the government is now taking direct stakes in U.S. banks up to $250 billion worth. And it's using $40 billion of that original $700 billion bank bailout to buy a stake in AIG, an insurance company. Taxpayers for common sense calls it a game of fiscal whackamo. The government throwing taxpayer money at each new problem that arises.
ALEXANDER: They are not moving in a way that inspires confidence in taxpayers. In terms of being clear about what the priorities are.
ROMANS: Meaning what exactly is the government doing with those $700 billion? Are they buying toxic assets like they promised Congress? Not yet. Are they pumping capital into the banks? Yes. But are the banks lending that capital? No. Critics say what Treasury is doing is a far cry from what it sold Congress. The Treasury's bailout point man Neel Kashkari disagrees.
NEIL KASHKARI, TREASURY DEPARTMENT: We worked very hard with the Congress to design the legislation to provide broad authority so we can design multiple tools under the TARP.
ROMANS: TARP, the acronym for the bank bailout. Then why is an insurance giant getting a piece of it?
KASHKARI: It was a one off event that was necessary for financial stability.
ROMANS: Financial stability or a bait and switch. Either way it all comes at a very high price.
(END VIDEOTAPE) ROMANS: And with little transparency, the taxpayer watchdogs points to a tax rule that was quietly slipped through a change in the tax rule quietly slips through that favors the banking industry to the tune of tens of billions of dollars more.
CHETRY: So when are we going to find what's happening with it?
ROMANS: We're going to read a lot of books about this. We keep saying they're going to be college courses some day in business school taught about this whole bailout and this whole process. We know where the money is going. The question is it's not going where Congress thought it was in the beginning. And Congress gave sufficiently broad authority to the Treasury Department can spend this money how it wants.
ROBERTS: I know at least a couple of professors who are teaching about it now. Thanks, Christine.
Here's what we're working on for you this morning. Without Ted Turner you would not be watching CNN right now. The outspoken founder of this network joins us to talk about his candid new memoir. And also gives us his thought in the presidential election. And that's coming up.
And the role of the vice president. It has changed drastically over the years. So what kind of responsibilities will Joe Biden have in the new administration? We're looking in to that on "the most news in the morning."
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ROBERTS: 48 and 1/2 minutes after the hour. We're getting word this morning about another AIG junket. Our affiliate KNXV-TV is reporting it cost $343,000 and great efforts were made to hide AIG signs and logos at a luxury resort in Phoenix last week. It comes as the insurance giant seeks another $40 billion taxpayer dollars. Joining us now is Congressman Elijah Cummings of Maryland. He's on the telephone. He's a senior member of the House oversight government reform committee. Congressman Cummings, what do you make of this latest AIG junket?
VOICE OF REP. ELIJAH CUMMINGS (D), MARYLAND: I'm extremely upset about it and it makes absolutely no sense. I just got a letter a few days ago from the CEO of AIG telling me that they would not have any of taxpayers' money being used in these junkets. As a matter of fact, he told me he was canceling 160 of these junkets that were already scheduled. And then when we see this, I mean, when we look at our economy when people are losing their homes and at the same time Whirlpool, Starbucks, you name the corporation -- GM, jobs, these guys, they don't get it. And they came to us basically saying we are on the critical list, we need a respirator and we bailed them out and the next thing you know, they are around and they're going out partying and spending the taxpayers dollars. And it's kind of, it's very upsetting.
ROBERTS: All right. Well, AIG is saying that this was a prudent business expense. This is something that they have to do to run their business. This is Steven from Larry Roth. He is the president and CEO of the AIG Adviser Group. He says "we take very seriously our commitment to aggressively manage meeting costs. Our success in enlisting product sponsors to pay for the vast majority of conference costs, while charging financial planners a registration fee and for their travel has resulted in minimal costs to AIG. In turn our financial planners benefit from strong educational and training content and the ability to earn Continuing Education (CE) credits."
So they are saying, they got to do this just as of course of business. It didn't look like a party.
CUMMINGS: No, no, it is a party. The fact is, keep in mind, just a month or so ago, they spent close to half a million on about 100 people doing the same kind of thing. That excuse can be used over and over again. But there' one problem with this. This is not business as usual. This is a company that said we are on our deathbed. And that's the problem. You know, it would be one thing if everything was flowing nicely, well here the American people, hard- working people, losing their jobs, using their taxpayers to bail them out, and then they claim to be on their deathbed and then they go out and have a party. Yes, it is a party -
ROBERTS: So again, Congressman -
CUMMINGS: ... the head of AIG would not have written that they are going to disband if they did not agree with me. All I'm saying is that if you want the American people to bail you out, then, then do me a favor. Make sure that you don't go out and basically spend their money, their hard-earned tax dollars to have a nice time. Get your company straight. Use that money for resurrecting the company and not partying.
ROBERTS: OK. Congressman Elijah Cummings of Maryland for us this morning. We should point out that the Congressman is calling for the CEO of Ed Liddy. He is the newly appointed CEO to step down. Congressman, I assume you're going to be hearing from Mr. Liddy later on this morning. We will be following this story for you all morning long. Keep it right here on CNN. Now 52 minutes after the hour.
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CHETRY (voice-over): When your new house is the White House.
UNIDENTIFIED MALE: Even though it's a historic house, it's also a living house. It's a home.
CHETRY: Can a first daughter really plaster the Jonas Brothers all over her bedroom wall? And how to you top a night like this? Election conception. Yes, we can. The making of Obama babies.
Plus, once called the mouth from the south, Ted Turner is here, live and talking. You are watching the most news in the morning.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CONAN O'BRIEN, HOST, "LATE NIGHT WITH CONAN O'BRIEN: Earlier today at the White House, President Bush had a private meeting in the Oval Office with President-elect Obama. Yes, and then afterwards, Obama met with Dick Cheney to see how things really work. Yes.
(END VIDEO CLIP)
CHETRY: Welcome back to the most news in the morning. And a lot of the recent talk has been about Barack Obama's transition into the White House. But what about his family? Especially his two young daughters and what challenges will the new first family face? Well, joining me now is Capricia Marshall. She is the social secretary for the Clinton White House. She now serves as the executive director for Hill Pack, which is Senator Hillary Clinton's political action committee. Thanks for being with us this morning.
CAPRICIA MARSHALL, SPECIAL ASST. TO Hillary Clinton 1993-1987: Well, thank you for having me.
CHETRY: So you have a unique view of what this is like. What are some of the things - I mean, you're basically coming from your old life, you're leaving it on, you're going to this fish bowl in Washington and needing to understand how it all works. What are some of the first things you need to tackle as you move into the White House?
MARSHALL: Well, this is an enormous undertaking for the Obama family, but a wonderful undertaking. They are going to a magical place. The White House is a place like none other. And I am so happy for them that they are going to be able to experience it. But it is a big task. How to pack up their home? How to move? What the children are going to do once they arrive. What is going to happen to their personal effects? and then preparing for the inaugural?
CHETRY: Right and that's a whole other ball of wax.
MARSHALL: Exactly.
CHETRY: Let me ask you about a couple of practical things. Like for example, the girls, can they decorate their own bedrooms?
MARSHALL: Of course, of course. They are going to be welcomed by an extraordinary warm, loving staff. And they will help them make that home their home. And so my suggestion to them would be to make it personal. To take those personal areas, the second floor of the White House, the third floor of the White House and make them personal to their taste.
CHETRY: Bring their own furniture?
MARSHALL: Sure. Of course. And color schemes and posters, anything that they want.
CHETRY: We joked about the Jonas Brothers' posters being up everywhere. Also, Michelle, as Barack Obama was meeting with President Bush, Michelle Obama slipped out a bit, she was scouting schools in the area as well for Sasha and Malia. And we know that Chelsea Clinton went to private school. She went to Sidwell. Amy Carter went to public school. What advise would you give her as she tries to make that decision for children.
MARSHALL: Make it your own decision. It is a personal decision and one that they should just discuss within the family as to what works for them. You know when it's brought out into the public, it's a no- win situation. And there are wonderful schools to choose from in Washington, D.C. I certainly hope that they go to Sidwell, that's where my son goes.
CHETRY: And Georgetown day is putting up a big you know, by for their money, too.
MARSHALL: I'm sure.
CHETRY: Michelle Obama said she also doesn't want the role of first lady to impact her role as a mom. Let's listen to what she said. It's very interesting.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, WIFE OF BARACK OBAMA: I'm a mother first and I'm going to be at parent-teacher conferences and I'm going to be at the things that they want me to attend. I'm not going to miss a ballet recital.
(END VIDEO CLIP)
CHETRY: How do you live a normal life and be a normal mom as well as the first lady at the same time? How do you balance that?
MARSHALL: Well, I would actually take a page out of Hillary Clinton's book. She was able to walk into the White House with a young daughter, at that time, Chelsea was only 12, only a couple years older than Malia. And she made family time family time. There are family dinners around the table. That they all tried to attend. And ballet recitals, Hillary didn't miss one. So you just make those markers. You make that time your time. And everyone within the White House knows that is untouchable time.
CHETRY: Very interesting. Also, she talked about using her position to help working mothers, saying that she doesn't necessarily want a policy role but she still does want to be an advocate for working moms, especially troops and people you know one parent deployed overseas. She talked a lot about that. What do you make of balancing that? Figuring out where you stand and what your role is as first lady?
MARSHALL: Well, I think that, first off, my suggestion would be for her to take it slow. You know understand what the White House is all about. I think that Michelle Obama has done a wonderful job during the campaign of balancing both her personal life and the duties that she was given while out there campaigning and I think that she'll bring that to the White House as well. Just enjoy and absorb it all. Because she will determine down the road what her path will become. And I think that that path will benefit many people. But there's no need to rush into it just yet.
CHETRY: All right. Fascinating. A lot of work ahead but as you said a lot of wonderful memories as well.
Capricia Marshall, former social secretary under President Clinton. Thanks for being with us.
MARSHALL: Thank you.
