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Campbell Brown
Detroit Bailout Stalls; Interview With Former Massachusetts Governor Mitt Romney
Aired November 19, 2008 - 20:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAMPBELL BROWN, CNN ANCHOR: Hi, everybody.
Breaking news we're learning more about at this very moment. Millions of jobs are at risk.
Bullet point number one tonight, the Detroit bailout may be at the end of the road. Senate Majority Leader Harry Reid has just called off any vote on a $25 billion bailout for the Big Three automakers. Congress and the White House just can't seem to agree on what to do.
Even before that announcement, just the possibility a bailout might not happen sent the markets grinding into reverse. The Dow industrials lost more than 400 points, closing today at a five-year low.
So, what is really at risk? In a moment, I'm going to ask chief business correspondent Ali Velshi about fears we may be flirting with a depression if we don't rescue the auto industry.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: This would be a disaster, just a disaster. So, we would end up with certainly double-digit unemployment rates in this country. We would end up with 15 percent to 20 percent unemployment rates throughout the Midwest.
(END VIDEO CLIP)
BROWN: Which brings us to bullet point number three. Where is the love? Some members of Congress have a problem with the CEOs of Ford, Chrysler, and General Motors taking private planes to the Capitol to beg the government for a bailout.
(BEGIN VIDEO CLIP)
REP. GARY ACKERMAN (D), NEW YORK: There's a delicious irony in seeing private luxury jets flying in to Washington, D.C. and people coming off of them with tin cups in their hands.
(END VIDEO CLIP)
BROWN: Ouch, deservedly so.
Also tonight, former presidential candidate Mitt Romney. We're going to ask the son of a Michigan auto industry legend why he thinks the road to saving the auto industry may lead through bankruptcy.
Also this evening, we're following major developments in the president-elect Barack Obama's transition to power, including the choice for one of the most powerful positions in the Cabinet.
Bullet point number four, the health czar. Sources close to the transition tell CNN that Obama wants former Senate Majority Leader Tom Daschle to be health and human services secretary. And Daschle has indicated that he will accept the job. As part of the deal, Daschle will be the administration's point man on health care reform.
And finally, Hillary Clinton, we're also looking into new reports she's having second thoughts about becoming Obama's secretary of state, even though her husband, apparently, is bending over backwards now to make sure his work doesn't get in the way of her getting the job. We will have the details on that coming up.
First, as always, though, cutting through the bull.
Something crazy is happening right now in the state of Nebraska. The governor is literally begging people not to bring their teenage children to Nebraska to dump them there, so that the state then has to care for them. It's happening. It's happening a lot.
Here is the backstory. You may have heard of safe haven laws. A number of states have them. The laws are intended to allow parents to leave an infant at a hospital anonymously and not face prosecution. The goal of course is to try to prevent unwanted babies from being abandoned.
The problem is that, unlike other states, Nebraska set no age limit when it passed its safe haven law a few months ago, so people are literally dropping off kids of all ages in Nebraska hospitals, in some cases, driving to Nebraska from other states to abandon their children.
The Nebraska legislature this week is expected to change the law because of this to now impose an age limit. The 35 kids who have already been dumped are now part of a system. They're old enough to know what's happened. One social worker said that some had begged their parents or their guardians not to leave, saying they may not understand why they're being left, but they know they're being left.
And no change in Nebraska's law will deal with the fact there are clearly a lot of parents out there who are willing to walk away or they're so overwhelmed they don't know what else to do.
One mother who drove from Georgia to leave her son at an Omaha hospital said -- quote -- "Don't judge me as a parent. I love my son."
You love him so much, you drove more than halfway across the country to leave him there? I mean, what about family, friends, church, neighbors, yes, social services in your home state?
Do all of these options really not exist for that mother? Maybe they don't. Maybe she really did feel that helpless. Nebraska can and will change its law this week, but it seems to me it has just opened a Pandora's box. We have to look and look hard at what is apparently a failure by our states to offer families any other recourse.
What is happening in Nebraska should be a wakeup call. We have got to look at why in just a few months that law was on the books, 35 children got left behind.
We're going to go back now to tonight's breaking news. As we mentioned before, Senate Majority Leader Harry Reid is calling off tomorrow's planned test vote on a proposed $25 billion bailout vote for the Big Three automakers. And he's holding out the possibility of a last-minute compromise.
But, tonight, apparently, nothing is in sight, even though the CEOs of Ford, Chrysler, and GM just wrapped up a second day on Capitol Hill, trying to convince skeptics in Congress and the country, frankly, that they really do deserve the help.
And chief business correspondent Ali Velshi is with me, as always.
I know you were listening to what was going on, on the Hill today. The case they made is that it's going to be catastrophic for the U.S. economy if we don't bail them out. But, clearly, since it's not going to happen, at least not in the next couple of weeks, they didn't make their case strongly enough.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Right. Here is what could happen.
It may be taken up by a new Congress. But, by then, it might be too late for General Motors, which is in the most precarious position of the three major automakers. Now, what happens is this could happen before January, when the new Congress gets seated.
General Motors could go into bankruptcy, and that usually means an ability to reorganize. You raise money. You cancel contracts. You do things like that and you come out leaner and meaner, but they may not be able to raise money in this environment. There are a lot of people saying why would you lend General Motors money, anyway?
The other problem of course is that would you buy a car from a company that is bankrupt? So, they're saying that this could immediately go from a bankruptcy protection into a liquidation.
BROWN: Meaning they wouldn't be able to reorganize because...
VELSHI: They would just go out of business.
BROWN: They would go out of business.
(CROSSTALK)
VELSHI: Now, what happens is they share a supply base with Chrysler and Ford. And if those suppliers that supply them end up going out of business, because they're in a precarious position, that means parts can't get to Ford and Chrysler, and that could start to take down those two.
So, in fact, there's some real -- there's something to what they say about the fact that there could be an employment catastrophe if they go out of business. The issue is, are we trying to save the auto industry, because these brands and these name are important to us and they're part of American history, or are we trying to save the jobs behind them? That's perhaps a more serious issue.
BROWN: Explain this to me. Congressman Barney Frank of Massachusetts today said it seems like him that there's a bias against blue-collar workers, autoworkers, basically, and giving them a bailout, while we were giving the Wall Street tycoons a bailout.
VELSHI: Right.
BROWN: His argument is, isn't the auto industry just as important to the economy as the financial services. Is it?
VELSHI: It is very important to the economy. In fact, we have been losing manufacturing jobs for years in this country. And the auto industry is at the heart of that.
But the fact is they support entire cities. In many cases in the Midwest, in Ohio and Michigan, you're seeing entire cities supported by this. It's not just autoworkers. So, by not giving a bailout because you want to show the automakers a lesson, you might be hurting a lot more people.
I had a call-in show today on the radio and I got a call from a woman in Michigan who put it pretty plainly to me. Listen to what she told me about the effect of bankruptcy.
(BEGIN AUDIO CLIP)
KELLY, MICHIGAN: I think that most people forget you are talking about millions of families, families with health insurance. Hospitals are now cutting back their positions. We're losing positions.
VELSHI: Yes.
KELLY: I work for a hospital. My husband works for the Big Three. We're both educated and we have children, and now if something happens to one of our jobs, now we're going to fall under the home foreclosure. Where do we go to get a job?
VELSHI: Right. Right.
(END AUDIO CLIP)
VELSHI: That's the problem. What happens? It starts a whole new spiral. We could see more than a million people put out of work.
Again, not a reason to reward bad management in the auto sector, but useful to remember. There are a lot of people who say, let them fail. They have been mismanaging. It's kind of like the bailout. You end up unfortunately hurting a lot of people who had nothing to do with that decision, the worker at Chrysler or General Motors, at Ford who is just coming work. They weren't responsible for bad decisions at the top.
(CROSSTALK)
BROWN: All right, still a lot more ahead on this, certainly.
(CROSSTALK)
VELSHI: It's going to be a tough one to get through.
BROWN: Ali Velshi for us tonight -- as always, Ali, thanks.
And there does seem to be I guess three big reasons why the top bosses of Ford, Chrysler, and GM didn't find a lot of sympathy today. And that might be their private jets.
Senior correspondent Joe Johns has details on what you might call their flights of fancy.
And, Joe, I just want to show people this. This is -- GM took out this full-page ad in "The New York Times" today saying they're doing everything they can. They are doing their part. They need this loan to be saved.
All three of the car company CEO on Capitol Hill for the second day, hat in hand, asking for billions. Instead, they got an earful.
Explain to people what happened.
JOE JOHNS, CNN SENIOR CORRESPONDENT: Kind of a disconnect, Campbell.
CEOs of the Big Three, they did. They flew here in big jets, got hit with a bunch of questions about it. The issue really though was just the way things look. If you're saying your company's in financial trouble and you're saying you're cutting back to try to make ends meet, why fly here in a private jet at a cost of up to $20,000? Why not ditch the jet? Getting a ticket and flying commercial could cost around $600 round-trip.
(BEGIN VIDEO CLIP)
REP. BRAD SHERMAN (D), CALIFORNIA: I'm going to ask the three executives here to raise their hand if they flew here commercial. Let the record show no hands went up.
Second, I'm going ask you to raise your hand if you're planning to sell your jet in place now and fly back commercial. Let the record show no hands went up.
(END VIDEO CLIP) ACKERMAN: There's a message there. I mean, couldn't you all have downgraded to first class or jet pooled or something to get here? It could have at least sent a message that you do get it. If you're going to streamline your companies, where does it start?
REP. PETER ROSKAM (R), ILLINOIS: The symbolism of the private jets is difficult. You know, you're talking to people that are schlepping back and forth, going through all the drama in the airports every day, along with the American public. My suggestion is that those types of symbolic things, they really matter.
REP. MICHAEL CAPUANO (D), MASSACHUSETTS: My fear is that you're going to take this money and continue the same stupid decisions you have made for 25 years.
(END VIDEO CLIP)
JOHNS: So, it was pretty clear these guys were coming here to face a tough audience, and they did. The whole corporate jet thing just made it worse -- Campbell.
BROWN: Yes, Joe, so how did they respond to the criticism? They have got to get -- or maybe they don't get it -- how frustrated people are seeing this kind of thing, executives with their bonuses and their perks, when they're worried about keeping their jobs.
JOHNS: Well, they were asked if they were willing to cut their salaries to $1 a year to avoid bankruptcy, and they said yes. Most of the hearing though was really about the bailout. The CEOs did a pretty good job of staying on message, talking about the reasons they were there, to ask for money to help them out of the credit crunch.
But the companies later issued statements, saying -- for example, Chrysler -- it doesn't have its own private jet, but leases aircraft are appropriate, and that safety is a consideration for executive travel. General Motors and Ford, they were a little more explicit. They said business executives are required to use private jets for security reasons. That was the excuse, security reasons.
BROWN: Yes, well, give me a break.
Joe Johns for us tonight.
This is going to hurt them, for sure.
Appreciate it, Joe. Thanks very much.
Former presidential candidate Mitt Romney argues that what Detroit really needs is new leadership, if that last story were any indication. We talked a few moments ago with him. Listen.
(BEGIN VIDEO CLIP)
BROWN: Would that be something that you would consider doing?
MITT ROMNEY (R), FORMER MASSACHUSETTS GOVERNOR: I don't think anybody wants that job.
(LAUGHTER)
(END VIDEO CLIP)
BROWN: So, remember that Romney is a former Michigan favorite son. He also had a surprising bottom line. He thinks if the government bails out the Big Three, that we can kiss the American automotive industry goodbye.
And a little bit later, wait a minute. This stuff wasn't supposed to change, or was the stuff supposed to change? Washington lobbyists armed with their checkbooks swarming brand-new members of Congress. Coming up, watch Washington's lobbyists as they pounce.
We will also dig into reports that Hillary Clinton may be having second thoughts about becoming secretary of state. What is really going on?
(COMMERCIAL BREAK)
BROWN: So, how many jobs could be affected if the Big Three carmakers go bankrupt? According to the Center For Automotive Research, it is a big number, almost three million jobs.
And yet some people argue that a big government bailout is exactly what Detroit doesn't need.
Former Massachusetts Governor and Republican presidential candidate Mitt Romney makes that argument today in "The New York Times." And that's intriguing, because Romney won this year's Michigan primary in part by reminding voters that his father, George Romney, rescued American Motors from the brink of collapse back in the 1950s.
Earlier this evening, Romney and I talked about what Detroit needs right now.
(BEGIN VIDEOTAPE)
BROWN: Governor Romney, welcome to you.
ROMNEY: Thanks, Campbell.
BROWN: Today, you made an argument for managed bankruptcy, is what you called it, for the automakers. Start by explaining to us what that means. How is that different from a regular bankruptcy?
ROMNEY: Well, there are a number of pathways really to manage a process of restructuring in the industry.
One of course is Chapter 11, where companies go into bankruptcy court, they keep operating, they come back out down the road, but they come out a little slimmer. You can also do that out of court. You can have an out-of-court settlement where the various parties come together, agree to certain slimming features, make the industry more competitive, and then go on from there.
What I'm basically saying is that just writing a check to Detroit is not going to help Detroit, that the right way to protect jobs and preserve this industry is for the industry to go through a restructuring, shedding some of the excess costs associated with labor, associated with retiree benefits, excess property, and so forth. So that's the process I think we need to follow.
BROWN: Isn't, though, that a risky proposition, because once a company does enter bankruptcy, who is to say that it will emerge, given the state of the credit market right now?
ROMNEY: Well, I think most people would prefer an out-of-court type settlement, if you will, a type of bankruptcy where you don't actually go into Chapter 11.
There could be special legislation that provided something of that nature in addition. But I really think that you have to recognize that if we leave the industry the way it is, with high labor costs, huge burdens as a result of retirees, excess costs of all kinds, this is an industry that is going to go away. And we can't afford that. We want to protect these jobs. We want to grow them.
BROWN: You also argue in your piece today that what the Big Three really need is new leadership. Would you consider stepping in, following in your father's footsteps...
(LAUGHTER)
BROWN: ... handling this giant negotiations, managing one of these companies, like GM, being kind of like a car czar? Would that be something that you would consider doing?
ROMNEY: I don't think anybody wants that job.
(LAUGHTER)
(CROSSTALK)
BROWN: Well, that may be the problem. No one does. I mean, seriously, who could take this on?
ROMNEY: Well, there are a number of people who could fill that role, and current management could work together with representatives of government and with the courts if necessary to make sure that the process is undertaken.
But recognize the alternative, which we're hearing about, this bailout, is just going to mean money going into these companies as is. The trends that you have seen in the past will only continue, perhaps even accelerate, downward. And as a result, you're going to be asked to do this again four or five or 10 years later, and the companies will be even smaller then.
Let's stop the slide. BROWN: So, let me ask you one more time, if in the spirit of "Team of Rivals," president-elect Obama came to you and he said, "Governor Romney, I read your piece, great idea, why don't you spearhead this for me?" would you consider it?
ROMNEY: You really think that Barack Obama is going to ask Mitt Romney to take on that job? That's a hypothetical, Campbell, I'm not going to follow.
But I do believe that there are a lot of good people who would be able to serve, and some of them in government, some of them who have previously been in business, some who are business leaders right now. So, I'm not worried about a person to do it. I am worried, however, about a sentiment that just says write them a check. And I that's the wrong way to go.
To protect the jobs and the industry, let's help restructure the industry and then help a renewed, invigorated, streamlined series of companies compete.
BROWN: All right, Governor Romney, we appreciate your time tonight. Thanks for being with us.
ROMNEY: Thanks, Campbell. Good to be with you.
(END VIDEOTAPE)
BROWN: If the three big car makers felt unwelcome on Capitol Hill today, well, earlier on the day, a generous welcome wagon was rolled out for newly elected members of the Congress.
It was part of the their freshman orientation. They met with lobbyists, lots of well-heeled lobbyists all too ready to whip out their checkbooks. And our investigative correspondent Drew Griffin was there. He's got an exclusive report.
Then later, the campaigner in chief on the trail again. Find out what Bill Clinton is up to in the "PDB," our "Political Daily Briefing."
And from a part of the world where there aren't enough happy endings, we have got one about two children that hits our bullseye.
(COMMERCIAL BREAK)
BROWN: Remember the Obama campaign slogan change we can believe in? Well, one change the president-elect promised was to lessen the influence of lobbyists. Well, it looks like the Democratic Party didn't get that message.
Drew Griffin of our Special Investigations Unit has our CNN exclusive tonight.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT (voice-over): You may not know Ric Fenton, but you can bet the freshman Democrats in Congress who turned out at Democratic Party headquarters might not forget him. Fenton is a lobbyist who unabashedly showed up at a fund- raiser this morning, introducing the newest Democratic members of Congress to how the old boys do business.
(on camera): Is this, cynically, buying access?
RIC FENTON, LOBBYIST: No, absolutely not. We're just educators. We provide an important function, as an education function.
GRIFFIN (voice-over): Fenton is a lobbyist who educates members of Congress on mining interests. He was one of a string of lobbyists and political action committee contributors who responded to this invitation to a new member debt retirement reception. There was even a suggested contribution amount, from $2,500 to $20,000, and a dance card, so you, the contributor, can make sure you don't miss anyone.
(on camera): How much money are you giving today?
FENTON: I think we're giving $5,000.
GRIFFIN: To one or a bunch?
FENTON: No, to several. We go through that fairly thoroughly.
GRIFFIN: Oh, is that right?
(voice-over): "Keeping Them Honest," we watched who went to the early morning breakfast which was sponsored by Congressman John Dingell, who didn't talk to us, and Congressman Nick Rahall, who did.
(on camera): Same old business as usual, retire the debt and introduce the new members to the old PAC money.
REP. NICK RAHALL (D), WEST VIRGINIA: Well, do you have an alternative?
GRIFFIN (voice-over): If this looks, sounds and seems like old- fashioned pay-to-play politics, that's because Joan Claybrook of the watchdog group Public Citizen says, well, it is.
(on camera): This is change?
JOAN CLAYBROOK, PRESIDENT, PUBLIC CITIZEN: Yeah, Right. This is the old-boy network at work. This is all strings attached. They know who gave the money. And when the key issues come up, key bills, key amendments, these members are going to be approached by these special interests and asked to vote with them, because they gave them money.
GRIFFIN (voice-over): Majority Leader Steny Hoyer, with his arm around the newest member of Congress from Michigan, told us it's way overplayed that members of Congress vote in their donors' interests.
(on camera): So what are these people who come here with the $5,000 and $10,000 checks, what are they getting if they're not getting access and votes? REP. STENY HOYER (D-MD), MAJORITY LEADER: Well, of course they're getting access, just as a citizen gets access when they go to a town meeting and spend some time there, or when they volunteer in a campaign. They have an ear that they can talk to. That's true. But the fact is, you would be surprised at how many people in this room are Democrats first and interest representatives second.
GRIFFIN (voice-over): No one is saying just how much money was raised.
(on camera): Did you get a lot of money?
(voice-over): But those new Democrats who may have come to Washington with change on their minds at least left the DNC with some change in their pockets, too.
(END VIDEOTAPE)
GRIFFIN: Campbell, they may not like doing business this way, but they're not ashamed of it. Congressman Rahall, one of the sponsors today, said, look, unless you're a zillionaire and can write your own checks, normal people can't afford to run for Congress. They need money to compete. They need donors to pay off their debt, and their new friends on Capitol Hill only too happy to help -- Campbell.
BROWN: Certainly are.
All right, Drew Griffin, interesting report. Thanks, Drew. Appreciate it.
Coming up, is Hillary Clinton having serious doubts about being secretary of state? Her husband says he's cooperating with the Obama vetting team. So, what exactly is the holdup?
But, up next, the bullseye, a story of hope in the middle of chaos -- how two lost children touched the heart of a journalist in war-torn Africa. You're going to want to see this. A
(COMMERCIAL BREAK)
BROWN: For our bullseye tonight, we go all the way to Africa and the war in Congo, formerly known as Zaire.
For years, the story there has been one of grief upon grief upon grief, rebels fighting, refugees fleeing, many, many lost and orphaned children. So, when there's even a tiny bit of happiness amid so much grief, we call that a bullseye, which give tonight to the French photographer Jerome Delay, not only for this photo, taken earlier this month, but for what he did next.
When the picture was published of an 11-year-old and her little niece separated from the older girl's mother by the war, Delay was swamped by e-mails from people worried about the girls, so he set out to find them again.
And he also found Esperance Nirakagori, the woman the girls had been torn away from. And, needless to say, in the chaos of the Congo, bringing a family back together again was not easy to do, but Jerome Delay makes it sound easy.
(BEGIN VIDEO CLIP)
VOICE OF JEROME DELAY, "ASSOCIATED PRESS" PHOTOGRAPHER: As I saw the children walking alone in the streets of Kiseguru (ph), a young woman on the road, in the middle of nowhere, I felt that maybe I have a chance to help one.
(END VIDEO CLIP)
BROWN: Some days you need a little something to hold on to. We will hold on to this gift from Jerome Delay, the smile on Esperance (ph) face. Esperance (ph), by the way, is French for hope.
And we have also just learned to update you on a story we did last night that the 8-year-old boy we told you about last night, the one charged with murdering his father and another man, is getting out of jail next week. This very strange story only grows stranger.
Also ahead, more fallout from California's Proposition 8 banning same-sex marriage. And in the PDB, voters in Alaska throw out the senator they have had for 40 years. The last of Ted Stevens just ahead.
(COMMERCIAL BREAK)
BROWN: Coming up, Hillary Clinton's big decision. Why insiders say the senator may actually take a pass on becoming secretary of state.
First, though, Gary Tuchman joining us tonight with "The Briefing" -- Gary.
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Campbell, hello to you.
An 8-year-old Arizona boy charged with shooting his father and another man to death can go home for thanksgiving. As we told you last night, a lot of people are questioning the tactics police used against the boy. We just got word that Judge (INAUDIBLE) can leave juvenile jail and spend two days with his mother over thanksgiving.
A fleet of Somali pirates took on the wrong ship Tuesday. An Indian navy warship destroyed a pirate mother ship similar to these off the coast of East Africa. Officials say the pirates attacked the ship from India first.
An FBI agent was shot and killed this morning in a Pittsburgh suburb. The agent was serving a warrant involving a drug ring. The owner of the house was arrested on cocaine charges. He claims the agent was shot by fellow officers.
California Supreme Court has decided not to block Proposition 8 for now, but the court will decide if the controversial ban on same- sex marriage is legal. Californians voted to change the state constitution after the state Supreme Court ruled in May that same-sex marriage is constitutional.
News of a break-through transplant. A woman gets a new windpipe grown from her own stem cells. That means no anti-rejection drugs are needed. If it works on this patient, it could become the standard treatment for diseases like tuberculosis.
And NASA's changing plans for three upcoming spacewalks after a shuttle astronaut lost a bag of tools in space. The bag floated off yesterday during a spacewalk to repair the International Space Station's solar panels. There it goes.
And, Campbell, I know it's a clear night in New York City. If you go outside, you might see a bag of tools orbiting the earth right now.
BROWN: Oops, what are you going to do?
Gary Tuchman for us tonight. Gary, thanks.
Minnesota has just started recounting nearly three million ballots to decide its U.S. Senate race, so why is Democrat Al Franken already up on Capitol Hill kind of acting like a senator? That's part of our PDB coming up next.
Then, even if Hillary Clinton passes the vetting process for secretary of state, find out why some people think she may say no thanks.
And we're going to tell you what Beyonce would like to do for Barack Obama.
(COMMERCIAL BREAK)
BROWN: We would like you to think of our PDB, the "Political Daily Briefing," as a tray of tempting political morsels served up by someone who really knows how to stir the pot. And for us, that is CNN contributor Dana Milbank, national political correspondent for the "Washington Post."
And, Dana, it may have taken two weeks, but the 2008 presidential election is finally over. But only tonight is it finally over.
DANA MILBANK, CNN CONTRIBUTOR: Right. I think in the state of Missouri, it is actually required for ballot counters to use only their thumbs because it did take them 15 days to decide it. But yes, it is official now. John McCain has won that state. You can tally it up on your electoral college score sheet at home.
However, this does mean that Missouri really can no longer qualify as a bellwether or battleground state. They're really officially a red state, and I don't think you should count on seeing a lot of presidential candidates out there in 2012 in St. Louis and Kansas City. BROWN: All right. Interesting. One race down and two to go on the Senate side. We reported last night Republican Ted Stevens didn't have enough votes to win, and then just a short time ago, he finally conceded the race to his Democratic challenger. But, still two very tight races going on.
MILBANK: That's right. Now, Campbell, you're a lot younger than I am, but Ted Stevens actually came to the Senate the very year I was born. And now, we have tomorrow, the sad spectacle of this convicted felon giving his farewell speech on the Senate floor. But political junkies should not despair.
President Clinton was down in Georgia today, campaigning in the Senate run-off election that's down there. And this very day, the recount started in Minnesota, raising the possibility that Al Franken could win there. So we may lose a felon in the Senate but gain a comedian.
BROWN: All right. And there may be a lot of work for the new Obama/Biden administration, but they did take a little time out today to celebrate a birthday, didn't they?
MILBANK: Well, they did. And I think there's potentially a nascent scandal here.
It was for Biden's 66th birthday. But then he somehow said that might translate to 12 in dog years. Very suspicious because I think that would actually make him 84 if I'm doing the math right. And you know, just the sort of fuzzy math that gets politicians in trouble here. So they got to be careful.
BROWN: Absolutely.
And this final story, this is my favorite story of the day. A congressman from Utah who says that just because he's been elected to serve in Washington doesn't mean he's going to stop living his frugal lifestyle. Tell us about Jason Chaffetz.
MILBANK: Well, it's true that, you know, they call the House of Representatives the people's house. But this Republican congressman from Utah is taking it a bit literally. He's actually taking a cot there with him. He's going to sleep in his office. He's going to shower in the house gym, he says. And he's going to take his dirty underwear home and wash it on the weekend.
So just a word to the wise, if you find yourself on a Thursday night flight to Salt Lake and you're next to this guy, you may want to ask for a new seat assignment.
BROWN: You know and I read today he's not the only one. There are a whole bunch of congressmen who live in their offices. Who knew?
MILBANK: Well, they take their work very seriously this time.
BROWN: I know. You know what? In this environment, I got to say they're my heroes right now. All right. Dana Milbank for us tonight. Dana, thanks very much.
MILBANK: Thanks, Campbell.
And we still have some other tasty stories to serve up to you. This evening, the latest for instance on a certain former first family.
And a really graphic look at the next first family. Stay with us.
(COMMERCIAL BREAK)
BROWN: "LARRY KING LIVE" coming up at the top of the hour. And tonight, he is talking to the filmmaker who took on General Motors 20 years ago.
Larry, tell us about it.
LARRY KING, HOST, "LARRY KING LIVE": You got it, Campbell. Michael Moore is back with us tonight, and I can't wait to get his take on the auto industry crisis. He'll tell us. You can count on that.
And why did the big three's CEOs use private jets while asking for public money? Funny.
Brian Ross has got all the goods on that, and he's with us.
And we'll have late breaking news on that Senate showdown and now is not going to happen.
Buckle your seatbelts. "LARRY KING LIVE" is next, Campbell.
BROWN: All right. Larry, we'll see you in a few.
Hillary Clinton may have a huge decision to make very soon, and some people who know her said they wouldn't be surprised if the senator actually says no to being secretary of state. Find out why when we come back.
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BROWN: Hillary Clinton may soon have to make the biggest decision of her political career, accept an offer to become secretary of state if she passes the vetting process, or turn down the job and keep her Senate seat. Today, former President Clinton said he'll do anything necessary to clear his wife's path to the Obama cabinet.
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BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: And we're both committed -- completely committed to his success. So that's what we have to work on. Whatever they do, I'll support.
(END VIDEO CLIP) BROWN: So will the former first lady be the president-elect's chief diplomat, or will she just say no?
Jessica Yellin is covering the Obama transition in Chicago for us. And, Jessica, you heard or read a lot of reports today that Hillary Clinton may be having second thoughts about accepting the job of secretary of state. She's not a 100 percent on board. I know you just got off the phone with a lot of your sources who have new developments. Explain what's going on here.
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Campbell, it's sort of fascinating. At the very same time that Senator Clinton is being vetted for this incredibly high-profile role as possible secretary of state. Senate leadership, Democratic leadership, is talking about a potential new role for her in the Senate should she decide to stay.
They were not told what the exact job would be, but the people I'm talking to, one source in particular, said Harry Reid, the Senate majority leader, is thinking about creating a new position for her to recognize her role in this campaign. What's sort of confounding about that is why would this be coming at the very same moment that she's clearly considering going to be secretary of state in this new administration?
The folks I talked to say, look, it's excessive to say Clinton is agonizing about becoming secretary of state. They say she's flattered but still somewhat undecided. And so, obviously, there are a lot of balls in the air, and she has a number of options open to her. She could still stay in the Senate -- Campbell.
BROWN: And, Jessica, I know there's also new reporting tonight that Bill Clinton is doing everything he can to try to be more open about his post presidential dealings and you've been talking to people about that as well. Tell us what you know.
YELLIN: That's right. One of the big sticking points was would Bill Clinton pass a vet? He takes money from various foreign donors for his charitable foundation. Would he release all this? He's saying yes.
Here are some other concessions he's made it clear he will make to transition Obama Team. He'll submit future foundation activities and paid speeches to a strict ethics rule and review. He said he'd release the names of several major donors to his charitable foundation, and he'd even step away from his day-to-day responsibility for his foundation, and he'd allow future speeches and donors to go by the State Department's guidelines before he accepts any new offers.
So, clearly, he's doing what he can to clear the path for his wife to become secretary of state if that's what she chooses to do -- Campbell.
BROWN: Yes. You know, never a dull moment with the Clintons. All right.
YELLIN: Never.
BROWN: Jessica Yellin for us from Chicago tonight. Jessica, thanks very much.
Let's talk about this, the vetting of Bill Clinton and the future of Hillary Clinton with our three -- three of our favorite political observers.
Joining us tonight, political contributor and Democratic strategist Paul Begala, senior political analyst Gloria Borger, and political contributor and Republican strategist Leslie Sanchez.
Hi, guys. Welcome.
GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Hi.
LESLIE SANCHEZ, CNN POLITICAL CONTRIBUTOR: Hi.
BROWN: Paul, let me start with you here. You just heard what Jessica reported, that the Senate leadership is talking about creating some kind of high-level role for her, which seems a little odd. I mean, could they be trying to entice her to stay? Or what do you think is going on?
PAUL BEGALA, CNN POLITICAL CONTRIBUTOR: Yes. That's the first I've heard of it. Jessica is a good reporter though.
My guess is, and this may shock some people in the media, they like her. She's very good at her job. You know, she's now in her second term. And I do think she has a remarkable status having campaigned around the country and earning those 18 million votes.
I also think she earned a lot of respect from her colleagues who had supported Senator Obama against her, because she was out there. She did over 70 events for the Obama/Biden ticket, and I think she did a lot to help out that ticket.
So it's kind of a nice place to be in. Folks in the Senate I think appreciate her and respect her and would like her to stay in the Senate. From some of the reports, it looks like the president-elect and his team are at least looking at her for secretary of state. Not a bad position to be in all in all.
BROWN: But do you think she's agonizing about it, though? I mean, there have been in all the newspapers today reporting that she, you know, hasn't made up her mind.
BEGALA: I suspect if you asked her what one of the most important moments she had when she was first lady was when she went to Beijing. At a women's conference in Beijing, she represented the United States of America and she spoke out and she said women's rights are human rights. And it was an important moment for American diplomacy and she was at the center of that. I think she really liked that. At the same time, I know for a fact she loves being a senator.
BROWN: Yes. BEGALA: Now, look, I know -- probably half of the people in the Senate don't like being there. They just want to jump to the presidency, and she clearly run for president but she authentically loves that work.
BROWN: Gloria, what do you make of all this?
BORGER: Well, you know, Campbell, this new role that they may be envisioning for her, we should point out, comes after she really wanted to be chairman of the subcommittee handling health care, and she was told that she wasn't senior enough to get to do that. And it's clear that the senator said, wait a minute, this woman got 18 million votes in the primary. Health care is her signature issue, and we're not going to have her be one of the leading people in the Senate should she decide to stay on health care? Even in the Senate --
BROWN: Yes. They get hung up on protocol a little bit, don't they?
BORGER: Excuse me?
BROWN: They get hung up on protocol a little bit, don't they?
BORGER: They do. So even in the Senate, even in the Senate, they said, wait a minute, this doesn't seem right. We have to make her this offer no matter -- no matter what she decides to do because how could they not?
BROWN: Leslie, what do you think?
SANCHEZ: Campbell, I'm just still stuck by your headline where it's like we're vetting Bill Clinton. I think a lot of people are scratching their heads going, wow, that's like the last thing anybody was expecting to hear.
There's an interesting situation happening here. Let's assume that they can both step away from the idea of this gracefully. Barack Obama looks like he's building that Abraham Lincoln model, a team of rivals and all the goodwill, because people know that she was such a strong contender and did so much for the Democratic Party. But at the same time for her political career, you're seeing a lot of scuttlebutt in the news today.
David Broder had a great piece about, you know, she would be a bit of a contrarian, maybe too much. You have the baggage of Bill Clinton. It allows her to maybe step back gracefully and be the leader that she wants to be independently in the Senate. So, it's maybe saving face on both sides.
BROWN: Let's talk about the Bill Clinton vetting stuff a little bit. And, Paul, let me go to you on this. Leslie just mentioned this piece by David Broder today. And let me read you a little bit of it.
Today, he writes, and this involves Bill Clinton. "Foreign leaders would inevitably see Bill Clinton as an alternative route to influencing American policy. He would be unlikely to remain silent." I mean, look, let's be honest. We did see during the primary that it was often hard for him to keep quiet during the campaign. Do you think this could be a problem, an issue if she ended up taking this job?
BEGALA: Well, yes, only if you think it's a problem that her husband -- and I mean this literally -- there are 1.4 million people in this world who are alive today because of the work of his foundation.
He's been fighting AIDS and malaria, extreme poverty and global warming. He is a beloved figure in the world at a time when America has been hated in the world. I think he's been one of the few shining lights that we have had around the world these last eight gray years.
So I think it's a little preposterous with all respect to Mr. Broder or others, to suggest that somehow one of the most beloved figures in the world could be a detriment to American foreign policy. He's been helpful to our foreign policy even when the Republicans have been running things.
BROWN: Gloria?
BORGER: You know, sure, it could be -- sure, it could be a problem. Bill Clinton could say something he shouldn't say. But don't forget, he was president of the United States. He knows what he's doing when he's talking to foreign leaders.
This isn't -- this isn't talking to a bunch of people in Iowa and New Hampshire, for example. And I think when you would weigh it, whether he'd be more of an asset or more of a detriment, I think you'd have to say, he's been much more of an asset.
SANCHEZ: Well, that's it. That, Campbell --
BROWN: Quickly, Leslie.
SANCHEZ: That's the bottom line. Is she going to be a subordinate in foreign policy? She hears what President Obama would want to do versus what maybe her husband would like to see done. She's going to be right in the middle.
BROWN: Well, I think she's got her own mind and probably can think for herself.
BORGER: Absolutely.
BROWN: All right. Guys, we got to end it there. But to Paul, to Gloria, and to Leslie, many thanks. Appreciate it.
BEGALA: Thanks, Campbell.
The music is really important, you know that. When you're throwing a big party, I mean, what's more important? Like an inauguration for what, three million or four million guests.
Well, Beyonce says she's going to be there. But do they actually want her? We're going to talk about that when we come back.
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SOPHIA HUNT, ITHACA, NEW YORK: Dear Mr. President. I'm Sophia Hunt. Here's my brother Thaddeus and Phineas Hunt and my friend, Cristina Dougherty. I think you will become a great president and commander in chief and you stick to the plan you have promised the people.
I think you are such a great president and a fair one too. I love how you think about everyone in the world, not just the wealthy people.
THADDEUS HUNT, ITHACA, NEW YORK: You're an amazing man.
PHINEAS HUNT, ITHACA, NEW YORK: Do your thing.
S. HUNT: Sophia, Phineas and Thaddeus Hunt and Cristina Dougherty.
ALL: Yes, we can!
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BROWN: Oh, come on, that was amazing. Tonight's "Dear Mr. President" letter comes from Sophia Hunt, her brothers Thaddeus, Phineus, and her friend, Cristina Dougherty. It was filmed by iReporter Travis Dougherty, all from Ithaca, New York. Great job guys.
Send us your letter. Look for the iReport link on our Web site, CNN.com/Campbellbrown.
And now, it is time for "Welcome to the White House," our nightly wrap-up of all things Obama. As always, our own one-woman transition team, Erica Hill, with us to bring us up to date on everything -- Erica.
ERICA HILL, CNN CORRESPONDENT: All right. Lots going on today. If you're keeping track and I know you are, 62 days to go until the inauguration. And get this, it seems like half of Hollywood now angling for an invite. Who knew they had to?
Beyonce told reporters last night she'd definitely be there for the swearing in. When asked if she would sing, she said, of course, I'd love to, who wouldn't? Although she hasn't officially been asked to do so.
You may want to keep an eye out there too for stars like Susan Sarandon, Spike Lee and Anne Hathaway, all rumored to be possible attendees.
Meantime, back at the White House, some more details for you tonight about how the future first daughters will make the transition. The "New York Daily News" reporting Sasha and Malia Obama will probably take the East and West bedrooms on the second floor of the residence. Caroline Kennedy, Amy Carter and Chelsea Clinton all call the East bedroom theirs. The West bedroom, where JFK Jr. slept later became Amy Carter's playroom.
On the third floor, the president-elect and first lady expected to make good use of the workout room. Michelle Obama told "People" magazine she does a 90-minute workout three times a week. And even on the campaign trail, Barack Obama was known for starting his day with a 45-minute workout six days a week.
He'll probably also make some time for his other passion, of course, hoops. The White House has a basketball half-court, but it may not be enough. Back in April, you may remember, the then candidate told reporters, I've sworn we're taking out the bowling alley in the White House and putting in a basketball court.
I wonder if that had anything to do with his bowling attempts. Remember this one? In Pennsylvania. Ah, yes.
BROWN: The bowling alley goes.
HILL: Finally for you tonight, a cover for Michelle Obama. Not the "Vogue" magazine we told you about, the cover of a comic book. Check this out.
Bluewater Productions featuring the future first lady in the third book of its "Female Force" comic book series. Hillary Clinton and Sarah Palin will also be part of it. Barack Obama, by the way, has his own comic book cover. It was released last month at IDW Publishing.
BROWN: What is that like, women power comics or something?
HILL: Apparently.
BROWN: Who knew?
HILL: I have to check it out.
BROWN: I love it. Erica Hill, thanks as always for being with us.
That does it for us tonight. We'll see you back here tomorrow night.
Larry King has got Michael Moore. That starts right now.
