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American Morning

Bill Clinton to Declare Transparency of Future Activities; Felon Senator Out; Dems Grill Paulson and Bernanke on Bailout Use; Obama Under the Radar; Detroit's Big Three Pleads for Bailout; Pirates Attack Again Off of Africa

Aired November 19, 2008 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR (voice-over): Breaking news. Big D.C. power shift. The convicted senator on his way out and now new GOP fears. How many losses must this party take?

Plus, Mr. Low profile. From this to this.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We're not going to do a long one. Thanks, guys.

ROBERTS: But what's going on behind-the-scenes on this AMERICAN MORNING?

(END VIDEO CLIP)

ROBERTS: You want to do the sound effects? There they are. Thanks to those garbage cans together. It's like that Broadway musical stomp, you know.

KIRAN CHETRY, CNN ANCHOR: Love it.

ROBERTS: Like that.

CHETRY: Exactly.

ROBERTS: Hey, good morning. Welcome to the program. It's the 19th of November. It's a Wednesday, and we've got lots of news to tell you about today.

CHETRY: Yes, including some breaking news this morning. A pirate staging yet another brazen attack off the coast of Africa. This is a new one.

They're going after a military warship in this case. The Indian navy says three pirate boats circled one of its ships in the Gulf of Aden overnight before firing at it. The Navy crew shot back setting one of the boats on fire.

Now, in addition to this episode, pirates have seized three ships off of Africa since Saturday. They still control those ships this morning.

Well, there is some new questions about an interrogation video of an 8-year-old boy who confessed to killing his father and another man two weeks ago. This video is part of a four-hour interrogation in which the 8-year-old's story changes after police repeatedly pressure him to tell the truth. The boy's attorney says that police overreached their authority, questioning the third grader without a lawyer or family members present.

Also breaking right now, it's being called a milestone in medicine. A stem cell breakthrough in a human windpipe transplant. Doctors say they replaced every cell in the donor windpipe using stem cells from the patient so that her body would not reject the new organ. The operation was first reported in the British medical journal, "The Lancet."

ROBERTS: Now we begin this morning with some breaking news. This is really interesting stuff to tell you about today.

With just 62 days until the White House changes hands, Washington is abuzz this morning over news that former President Bill Clinton is reportedly hammering out a deal with the president-elect to open his books about future business in philanthropic activities. A significant move that may give his wife, Hillary Clinton, a much better crack at being the next secretary of state.

CNN's Alina Cho joins us now with the breaking news.

Good morning to you. This is really interesting.

ALINA CHO, CNN CORRESPONDENT: Oh, we've all been waiting for it. Right, John? Good morning. Good morning, everybody.

This is a report coming out of this morning's "Wall Street Journal". Everybody has been wondering. And now, one Democrat says Bill Clinton is "willing to be as transparent as the Obama world wants."

According to the journal, Clinton has offered to seek clearance on all donations to his charitable foundation. Now that includes his presidential library and the Clinton Global Initiative, which does work like solving problems around AIDS and hunger around the world. He would also follow the same procedure before agreeing to paid speeches. And he would even step away from his foundation's daily operations all considered to be significant concessions for his wife.

Now the journal is reporting that a small team of aides to Obama and the Clintons have been hammering out this deal in Washington over the past couple of days under the agreement Mr. Clinton would disclose the identities of all new donors to his foundation and would also make public major past contributors. But this is key. Major has not yet been defined.

Also, the report says that Mr. Clinton would not return any money already collected from foreign, political and business leaders, even if there is controversy surrounding the donations, largely, the journal reports, because those funds have been spent, as I mention, on campaigns to alleviate AIDS and hunger. Now since leaving the White House, Clinton has raised millions of dollars, much of it from overseas. And many of the donors of the Clinton foundation include the Saudi royal family, the king of Morocco, and other Middle East governments, all major players Hillary Clinton would need to engage if she becomes secretary of state.

Now the Obama transition team, of course, wants to make sure that there are no conflicts of interest. And even if all of these discussions pan out and he reveals all of this information, Senator Clinton, John, has not yet decided whether she will take the job, according to aides, or whether she will remain in the Senate. But one thing is for sure, this vetting process is probably as complicated as a peace treaty, especially when you consider that just through his speaking engagements, Mr. Clinton has made $51.85 million, according to one report.

ROBERTS: And, of course, he has given at least an equal number, if not more number of speeches that he didn't actually take the money from. That money went directly to a charitable foundation where that was his charitable contribution to give the speech. But certainly this is a point of contention during the presidential primary campaign is, you know, the money behind the curtain here and where does it all come from and where is it all going and they weren't fully, you know, forthcoming about all of that.

CHO: And even -- even in the past several days, of course, we have all been waiting for this and they have said that this would be a point of contention. And perhaps we'll see how much he reveals. It might be enough. Maybe it won't be.

ROBERTS: They're really plowing new ground here too, in the extent of the vetting process and the fact that here you have in modern times, the wife of a former president of the United States who may become the secretary of state, and all the vetting that he has to go through in order for her to potentially get the job. It's really incredible.

CHO: It is incredible.

ROBERTS: All right. Alina Cho for us this morning. Alina, thanks so much.

CHO: You bet.

ROBERTS: And Barack Obama is turning to one of his close associates to be the next attorney general. He's Eric Holder, a former number two at the Justice Department in the Clinton administration. He is still being vetted but has indicated that he will accept the job and if confirmed, he would be the first African- American to hold that post.

You remember also that Eric Holder, along with Caroline Kennedy, was in charge of the vice presidential search. And so they ended up with Joe Biden.

CHETRY: That's right. Well, we're certainly been hearing a lot of Clinton talk today.

ROBERTS: I tell you.

CHETRY: So in the Obama administration.

ROBERTS: (INAUDIBLE) old as new again.

CHETRY: Yes. It sure is.

Well, there are some major political developments as well this morning. The Democrats look to be tightening their grip on Washington, if you will.

Convicted Alaska Senator Ted Stevens, the longest serving Republican ever, appears to have lost his seat to Anchorage Mayor Mark Begich. Now, these are unofficial returns. The numbers though are on Begich's side. He leads by 3,724 votes with just 2,500 yet to be counted.

That's right. There were still counting votes up until today and it will continue. Begich is poised though to go to Washington. Democrats would be just two seats shy of a 60 vote filibuster-proof majority.

CNN's Dana Bash is live on Capitol Hill. Are you hearing anything from Senator Stevens? Because, you know, a big e-mail chain got sent out last night from Begich's camp saying, "We won."

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: You know, no, we aren't. And it's really interesting, Kiran, we are hearing that call of victory, I should say, from the Democrats. But no, a concession of defeat from Stevens.

And, you know, yesterday before we got these latest numbers in the hallways here, Stevens was telling some of us that he was quite defiant, mentioning the fact that he doesn't think that the military absentee ballots are going to come in until the 25th of this month and then, of course, there is a state law in Alaska which does allow him, if he wants to, to wage a recount. So that is all possible.

Having said that as you just mentioned, Kiran, the numbers are not looking good for Ted Stevens and it does seem that this is the end of an unbelievable drama that has been going on.

He was convicted right before the election, of course, of seven counts of corruption and, you know, he's not exactly, certainly at least since he's been under federal investigation kind of a hang out in the hallways, talk to reporters kind of guy. But yesterday, he really did open up a little bit, Kiran.

He was talking about the fact he has not slept in nearly four months. He says he wouldn't wish what has been going on with him on his worse enemy. Now, they're interesting points.

You know, I was surprised but certainly noteworthy. He said that he would not ask President Bush or any president to pardon him for the convictions that we saw last month.

CHETRY: You know, and also while this could be good for Democrats, it actually could be good for Republicans as well, because had Ted Stevens maintained or retained his seat, it wouldn't have been over from there.

BASH: Exactly. It really is counter intuitive. It's, you know, like Republicans are happy or at least relieved about the fact that their longest serving senator, somebody who has been a tremendous powerhouse here on Capitol Hill seems to have lost the seat. But you know they are.

Yesterday, again, the Republican conference, the group of Senate Republicans, were meeting and they had planned to vote to boot Senator Stevens out of the Republican Party, basically, to strip him of his chairmanship, of his ranking position on key committees. They didn't do that because they wanted to wait to see what happened in the state of Alaska. Now, they basically don't have to if these results stay the same.

And, you know, there's so much pressure on these Republicans to make clear that they don't have any tolerance for corruption. Now they don't have to deal with it.

CHETRY: All right. Dana Bash for us on Capitol Hill this morning. Thanks.

Well, two other Senate races are still undecided this morning. If Democrats are on the table, they could get that filibuster-proof majority that we talked about. It would be the first time in 30 years.

In Minnesota today, a manual recount begins in the razor-thin race between Republican incumbent Norm Coleman and Democrat Al Franken. Also in Georgia, former President Bill Clinton will hit the stump today for Democrat Jim Martin. He's locked in a hotly contested runoff against Republican incumbent Senator Saxby Chambliss.

ROBERTS: So that within two of that majority, which would be a clear indication of why Senator Joe Lieberman retained his position as the chairman of the Homeland Secretary Committee.

The president's top two money men grilled on the Hill for taking $700 billion of your money. Why they say it was not a bait and switch.

And Barack Obama's low profile. Why mum is the word with president-elect as he puts together his new administration. It's almost nine minutes after the hour now.

(COMMERCIAL BREAK)

ROBERTS: It's 11 1/2 minutes after the hour now. In defense of what some say is the indefensible, I'll tell you, the Fed chairman and the secretary of the Treasury were up on the ramp parts there looking across the moat saying, we need the $700 billion. Please, give it to us.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Yes. And the hordes were outside the ramp parts definitely because I'm telling you that Congress, people a lot of question in Congress and Democrats very angry about the way the $700 billion bailout has been implemented. A lot of questions and a lot of anger about the fact that they say that it's not been doing enough to help homeowners. And they say, frankly, you know, they were sold one thing and another thing has happened. Listen to Congressman Gary Ackerman.

(BEGIN VIDEO CLIP)

REP. GARY ACKERMAN (D), NEW YORK: You seem to be flying a $700 billion plane by the seat of your pants. It seems to be the second largest bait and switch scheme that history has ever seen.

(END VIDEO CLIP)

ROMANS: The first bait and switch scheme, he says, is the case for going to war in Iraq. So, clearly, some deep-seated anger there about this deal and also some partisan --- some partisan anger as well.

Now, the criticism that, you know, they were sold the fact that toxic assets have to be taken off the banks' books and instead the federal government is injecting money directly into the banks. Anger (ph), they say, that the banks aren't doing enough to get the lending going. But the treasury secretary defended this bailout. He said it is working.

(BEGIN VIDEO CLIP)

HENRY PAULSON, SECRETARY TREASURY: The intents of the TARP when we came here was to stabilize the system to prevent a collapse. I believe that that meant that we have stabilized the financial system and prevented a collapse. I was also very clear in saying we have a lot of work ahead of us.

(END VIDEO CLIP)

ROMANS: That's because we've stabilized the financial system but the markets are anything but stable, and the economy is still weak and there's a lot of work to go. The treasury secretary keeping $350 billion of that monster bailout. That's for the next president to deal with, to do what he has to do next. But I don't think this Congress would have given him the permission to use the other $350 billion.

CHETRY: And it's kind of -- he says it could be worse. But how can you really quantify that or argue with it? You're dealing in unknowns.

ROMANS: That's absolutely right. He says it prevented something -- some kind of a major collapse but we haven't fixed everything. That's for sure. ROBERTS: But do we really know if that happened or not? Because remember that meeting that they had on Thursday night, members of Congress were told by Bernanke and Paulson that by Monday we might not have an economy.

ROMANS: That's absolutely right. We just don't know.

ROBERTS: And Monday we did.

ROMANS: And he points on to say that, you know, the two weeks that passed from when they first went to Congress and it was finally passed, things changed so much that using $350 billion the first half of that just wasn't going to be enough to buy those toxic -- it wasn't enough firepower, he said, and they had to switch gears.

So I'm not blaming Congress that it took them so long but things just changed so much just in those two weeks.

ROBERTS: Who would have ever thought there'd be so much controversy over spending a paltry $700 billion?

ROMANS: No kidding.

ROBERTS: Christine, thanks.

Fourteen and a half minutes now after the hour.

Safe haven.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Some children have been begging their parents and guardians not to leave.

(END VIDEO CLIP)

ROBERTS: The latest on the legal loophole that has made Nebraska a dumping ground for unwanted kids.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I gave Taylor (ph) a kiss and a hug, and I told him that I loved him and I went home.

(END VIDEO CLIP)

ROBERTS: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP, "THE LATE SHOW WITH DAVID LETTERMAN")

DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": Barack Obama is putting his team together to take over the administration and so far he's got his mother-in-law going to be living with him. Got his mother-in-law. And he's talking about Hillary for secretary of state. So you got your mother-in-law, you got Hillary Clinton. Boy, sounds like smooth sailing to me.

(LAUGHTER)

I mean, come on. Hello?

(END VIDEO CLIP)

ROBERTS: Well, despite David Letterman's take, President-elect Barack Obama does seem to be steering his ship just fine but he's traveling well under the radar as he builds his new administration.

Jim Acosta joins us live from Washington with the look at Obama's new lower profile. So we're hearing some dribs and drabs. Eric Holder, maybe Hillary Clinton, but other than that, Jim, it's pretty tight ship they're running over there.

JIMN ACOSTA, CNN CORRESPONDENT: That's right, John. And Barack Obama is once again appearing to maintain a light schedule today which means the president-elect has gone from no drama Obama to almost no Obama.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): The next president is mostly keeping a low profile on his way to the highest office in the land, whether it's his brief encounter with John McCain...

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Hey, guys.

ACOSTA: ... or discussing the faces of his coming administration.

OBAMA: Beyond that, you're not getting anything out of me, Steve.

ACOSTA: Mum is the word. The president-elect and his transition team are back to the tight-lipped message discipline that was one of the hallmarks of his campaign.

DANA MILBANK, CNN CONTRIBUTOR: Through the campaign, he's not been terribly open and accessible in terms of taking questions and explaining himself in a transparent way. So this has really been a continuation of that.

ACOSTA: At his last news conference 11 days ago, Obama tried to explain change was coming. Just not until January.

OBAMA: The United States has only one government and one president at a time. And until January 20th of next year, that government is the current administration.

ACOSTA: Instead, what the nation has seen of Obama is a series of photo ops, a pat on the back at the White House, a kiss on the cheek of the future first daughters. Even the verbose vice president- elect seems to have found what could almost be described as a secure, undisclosed location. MILBANK: It's true that Joe Biden has been given a tour of the Naval Observatory where the vice president lives. It's possible he got locked in one of those bunkers down there.

OBAMA: This is Barack Obama. How are you?

ACOSTA: Instead of the crush of cameras that followed Obama's every move, the future president now posts videos on his change.gov Web site, as he just did on the issue of global warming.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Now is the time to confront this challenge once and for all. Delay is no longer an option.

(END VIDEO CLIP)

ACOSTA: But it's all a far cry from the adoring crowds and the ads mocking those adoring crowds.

(BEGIN VIDEO CLIP)

NARRATOR: He's the biggest celebrity in the world.

(END VIDEO CLIP)

ACOSTA: The president-elect knows how to cut things short.

OBAMA: We're not going to do a long one. Thanks, guys.

(END VIDEOTAPE)

ACOSTA: And Obama's spokesman points out campaigning and governing are two different things. Critical matters such as planning a national security transition cannot be done in front of the cameras.

And, John, I have to point out this one thing. I talked to an Obama aide yesterday. I said, what's the deal with the low profile? He said, "What do I have to do? Give you guys in the media an Obama teddy bear?" I responded, John, that might help.

ROBERTS: Yes. I guess the media is suffering from withdrawal particularly people who are on the campaign.

But, Jim, as difficult as the campaigning is and as rigorous the schedule as that is, can you imagine trying to put together a government? That's the big word.

ACOSTA: Right. Right. And if you look back in history, I mean, we have to go back a pretty long way. In 2000, President Bush had a pretty speedy transition because of the recount and then you have to go all the way back to 1992, from Bush one to Clinton, to get to an actual transition that took a couple of months. So we're in somewhat unchartered waters in terms of the last couple of decades.

ROBERTS: All right. I guess they want to make sure that they get this one right.

Jim Acosta for us in Washington this morning. Jim, thanks so much.

ACOSTA: You bet.

CHETRY: Dangerous waters. Another brazen pirate attack in an Indian warship fighting back. We're following the increasing violence in the seas live from Kenya.

It's 21 minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. CHRIS DODD (D), BANKING CHAIRMAN: In short, the automakers have failed to adapt to change in my view, and the shareholders are rendering judgment to that fact. They have approached 21st century challenges with decidedly 20th century mindset, and we're all paying the price for it.

(END VIDEO CLIP)

CHETRY: That was Senator Chris Dodd with his thoughts on an auto industry bailout as the "Big Three" automakers plea for a $25 billion government loan. A vote could come as early as tomorrow. And while that plan currently lacks some support, some leading economists say that urgent action is needed, and my next guest is one of them.

Jeffrey Sachs joins me now. Thanks for being with us. He's the director of the Earth Institute at Columbia University and also a special adviser to the U.N.

You wrote a very eloquent piece about why you think that this auto bailout is needed. Can you explain, first of all, why they need this 25 billion so badly?

JEFFREY SACHS, DIR., EARTH INSTITUTE AT COLUMBIA UNIVERSITY: They would not have needed it were we not in the worse economic crisis since the Great Depression. So I think everything has to be put into context of the complete collapse of everything right now.

The financial markets aren't working. They can't borrow. Their customers can't borrow. The floor has fallen out from under the auto industry worldwide.

It's not just GM, Ford and Chrysler. It's Toyota and Nissan, Honda. It's worldwide.

So as the GM CEO said yesterday, a chasm has opened up between where they are today and where they're planning to be in 2010 with a breakthrough technology, the so-called plug-in hybrid of the Chevy Volt. That's why they need a loan. If they can go to the market, that's what they should do. But there's no market right now.

CHETRY: So what are they going to do with this $25 billion if it should be approved?

SACHS: They are in the process already of a major overhaul because the SUV era is over. That's what American consumers wanted for a long time. But now oil prices, of course, have soared. Instability, the loss of wealth of American households, people want fuel efficient cars. They're retooling.

Fascinating that GM has a breakthrough, even leapfrog technology to jump ahead of Toyota. Toyota brought in the hybrid. GM is about to bring in the plug-in hybrid. You recharge it in the wall with 120- volt socket. This is actually something very big because this could take us to the 100-mile per gallon automobile just in the next couple of years.

CHETRY: I want to tell you about what Mitt Romney said. He's a former presidential candidate, and he -- he said, he's coming up in our next hour, by the way. He's in favor of what he calls a managed bankruptcy. This is how he put it.

He said, "Without the bailout, Detroit will have to drastically restructure itself. Detroit needs a turnaround, not a check."

He's almost arguing that maybe they do need a little bit of tough love to really encourage them to adapt and change. You don't agree?

SACHS: No. They do need tough love, but bankruptcy is not tough love. Bankruptcy is the end. You know, people say let them restructure under Chapter 11.

But customers do not buy cars in companies that are in Chapter 11. Where are they going to get their parts? Where are they going to get the servicing?

And even if you go into Chapter 11 in normal times when you're in bankruptcy, you are able to borrow money. There's no borrowing right now. So going into Chapter 11, which some people have said is the way to restructure, is actually such a gamble.

It's reckless for our largest manufacturing sector in this country, and one of the most important industries in the whole world. So I don't know really why people are ready to gamble with an economy on the edge of depression right now. We're in the steepest recession ever. We're talking about taking four percent of this $700 billion bailout.

CHETRY: Right. I know what you're saying.

I think a lot of -- I think a lot of people are wondering, probably Congress as well, where does it end, I mean, if we're talking about this chasm.

SACHS: Well, we have to have an economic recovery.

CHETRY: Right. But what industries need to be bailed out next and where does it end? SACHS: I don't think that's really the point. I think the point is if we allow ourselves to go into a downward spiral, we will get a self-fulfilling collapse. If we take our largest industry and say yes, get us to the new technologies. This is a 70 million vehicle industry worldwide. GM is still, it's number two in the world.

CHETRY: Right.

SACHS: But right tied with Toyota. This is a major company with huge technology. So, if we stand by and say oh, it's just going to go under. Where does it end? It will go down and down and down. If we try to put a floor on it and get a recovery, we can make a recovery.

CHETRY: Fascinating stuff that's going to be debated in the walls of Congress today as well.

Jeffrey Sachs, always great to see you. Thanks.

SACHS: Thank you so much.

CHETRY: John?

ROBERTS: Just about 30 minutes past the hour now, and here's a check of today's top stories.

Former President Bill Clinton reportedly making an agreement with the president-elect that may give his wife Hillary a better shot at becoming secretary of state. According to the "Wall Street Journal," Clinton has agreed to seek clearance from two government entities on all future donations to his charitable foundation. It will also follow the same procedure before agreeing to give a paid speech.

It appears convicted and long-time Republican Senator Ted Stevens of Alaska is out. Last night his Democratic opponent, Anchorage Mayor Mark Begich, claimed victory citing a lead of more than 3,000 votes, with just 2,500 ballots left to be counted. If the results are made official, it would put Democrats just two votes away from a filibuster proof majority with Senate races in Minnesota and Georgia still undecided.

Gasoline prices now down for the 63rd straight day. This morning, the national average is $2.05 a gallon. That's a drop of more than two cents from yesterday. The last time gas prices were this cheap was March of 2005.

Also this morning, breaking news overseas what is turning into a major threat against international shipping. Three new attacks by pirates off the coast of Africa. One of them, triggering a gunfight with a military warship. Overnight, the Indian Navy confirmed that pirates opened fire on one of its security boats in the Gulf of Aden. The Navy crew shot back setting one boat on fire. And forcing two others to speed off.

Hours earlier, a cargo ship with an Iranian crew was seized in the same area. A Thai fishing boat was also captured off the coast of Somalia. This morning, Somalia is where pirates continue to hold that massive oil tanker that was captured over the weekend.

CNN's David McKenzie is following the story from the region. He's live on our bureau in Nairobi, Kenya.

David, just an incredible flurry of piracy off of the coast of Eastern Africa. What's going on?

DAVID MCKENZIE, CNN CORRESPONDENT: Well, that's right, John. It's quite extraordinary. I mean, we've been tracking pirates for months now. We've talked together about this before. But in the last week, it's really gone out of control. And it didn't take long after that, that Sirius Star was taken for one of the military vessel to flex its muscle. As you said that Indian vessel, that INS Tabar, which is a frigate, was engaged with pirates and they suspected mother ships.

Now, John, mother ships have been going off the coast of Somalia. The pirates use them as bases to then attack bigger vessels. I've even talked to people who have been on ships that were hijacked, and then that hijacked ship was taken to hijack another ship. So, it's really extraordinary the level of sophistication these pirates are using to capture this ships. And it's a massive burden on the shipping industry and the threat for merchant sailors in this region -- John.

ROBERTS: There were a group of people who were accused of being pirates captured recently by British warship. They have now been handed over to authorities. They are in Kenya. What's next in that investigation?

MCKENZIE: Well, it's a tricky one. I mean, those -- as you can see, those racket bunch of guys, they were caught last month by British war ship off Somalia. They were brought here to Kenya. But, you know, what's the jurisdiction over this sort of thing? And Somali national cannot be tried legally here in Kenya for a criminal act.

That's one of the biggest problems facing warships and facing navies in the region. When they go after a pirate ship that's taken the hijack vessel, that hijack vessel might be flagged in Panama, owned in Iran and operated out of Saudi Arabia. So, John, it's very difficult, this legal wrangle that is just another complication in this major problem for shipping in this region of Africa.

ROBERTS: Yes. I mean, for example, the Sirius Star was -- it's Saudi owned and flagged in Liberia. Many ships were flagged in Liberia. But there are so many warships in that area monitoring the situation. How do these pirates still manage to take over these ships?

MCKENZIE: It's a great question. I've been on some of those warships, particularly missile destroyer, the USS ship, which was a very sophisticated vessel with remote capabilities. It was a really impressive piece of hardware. The problem is -- is that they are designed for fighting major battles and these pirates are more like a criminal organization. So the two things don't necessarily mesh. I mean, I have to see how they can make it work to stop these pirates -- John.

ROBERTS: All right. David McKenzie for us in Nairobi this morning. David, thanks so much for that.

CHETRY: Well, Nebraska, taking its first step to close the loophole in its Safe Haven Law. This was a law originally designed like many states have to prevent newborns from being abandoned. Well, the state now passed the first round of votes for a new age limit yesterday, to stop desperate parents from abandoning their pre-teen and teenage kids. CNN's Sean Callebs is live for us in Lincoln, Nebraska this morning with more on this.

Hi, Sean.

SEAN CALLEBS, CNN GENERAL ASSIGNMENT CORRESPONDENT: Hi, Kiran. Lawmakers here expect to be back in session, just a couple of hours. And fully expect to have the measure approved and signed into law by Friday. But separately and completely unintentionally, they say the controversial initial Safe Haven measure that was approved also exposed a glaring weakness in the issue of mental health treatment for kids in Nebraska as well as other states.

(BEGIN VIDEOTAPE)

CALLEBS (voice-over): It wasn't supposed to be like this. Nebraska lawmakers are set to close a legal loophole this week to make sure that only infants less than 30 days old can be abandoned at the state's hospitals under its Safe Haven Law. Since it became law in July, any parent can legally abandon children of any age by declaring two simple words, Safe Haven.

(on camera): Heartbreaking, isn't it?

COURTNEY ANDERSON, SOCIAL WORKER: Absolutely. Absolutely. It's unbelievable the cases that we're seeing.

CALLEBS (voice-over): Often social worker Courtney Anderson has been the first comforting face children find.

ANDERSON: Some children have been begging their parents or guardians not to leave. They might not really understand why they are being left at the hospital, but they know they are being left and the parent or guardian might be fleeing.

CALLEBS: Legislators admit a certain oops factor.

SEN. BRAD ASHFORD (R), NEBRASKA: We didn't think that it would be use to the extent it was. We didn't anticipate children coming from other states.

CALLEBS: Parents like Lavennia Coover say they've abandoned kids with mental issues, that they simply can no longer control. Coover told lawmaker she left her 11-year-old son, Skylar (ph), at the hospital after enduring years of abuse and fighting.

LAVENNIA COOVER, MOTHER: I ran 11:45 p.m. that night. I gave Skylar a kiss and a hug, and I told him that I loved him and I went home.

CALLEBS: Many abandoned children end up in Nebraska's famed Boys Town, started by Father Flanagan nearly a century ago. But director says consider this before criticizing parents or the state.

REV. STEVEN BOES, EXECUTIVE DIRECTOR OF GIRLS & BOYS TOWN: I think it shows that what's going on is there are parents who are so desperate to get their kids help that they just don't know what to do.

CALLEBS: Lawmakers know they have been roundly criticized for the way the initial Safe Haven Law was crafted.

Is there anything you wish that the legislature would have done differently? Well, thinking back.

ASHFORD: No. I mean, basically, everyone stood up and said we are a caring state. We're going to -- we're going to address this issue. I'm proud of that.

(END VIDEOTAPE)

CALLEBS: And you know, lawmakers heard the criticism from all over the country. How could you approve a measure like this that would allow kids to be dumped off at hospitals? Kids of all ages. Well, they say, that they plan now on focusing in January, Kiran, when the next session begins on the issue of mental health for kids. And they certainly hope to improve that, but this era of fiscal austerity probably easier said than done.

Kiran?

CHETRY: Yes. A real challenge for them for sure. Sean Callebs, thanks so much.

ROBERTS: And President-elect Barack Obama about to face the realities that comes with his new job. What he is giving up in order to become America's 44th president. 37 minutes now after the hour.

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CHETRY: Welcome back to AMERICAN MORNING. Here's a live picture right now from our Jacksonville, Florida affiliates, shaping up to be a gorgeous day there. I think a high of around the mid-50s. Rob Marciano is in the weather center for us in Atlanta.

They're not going to see any of that Alberta clipper that's going to make things very cold for other parts of the country.

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CHETRY: Yes, we brought out the down puffer coats already. Woo! It's only November. Thanks, Rob.

MARCIANO: All right.

CHETRY: 41 minutes after the hour. ROBERTS: Quizzing a kid.

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UNIDENTIFIED FEMALE: We need to talk to you.

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ROBERTS: Legal analyst Sunny Hostin on the videotaped questioning of an 8-year-old murder suspect.

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UNIDENTIFIED FEMALE: Where did you get the gun?

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ROBERTS: You're watching the "Most News in the Morning."

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ROBERTS: President-elect Barack Obama is in store for some changes. He is about to turn over his BlackBerry for life in a fishbowl called the White House. And that Obama is quickly learning that isolation comes with being the man in charge. Here's CNN's Alina Cho. She's here now to talk more about that.

You know, you can be surrounded by so many people and still feel very alone at times.

CHO: That's right. He told "60 Minutes" there's a certain loneliness to it, right? Good morning, everybody.

You know, there's the political transition and then there's the personal transition. So, what exactly happens when you become the most powerful man in the world? Well, you lose your privacy, of course. To put it simply, everything changes. And in 62 days and counting, it will change again.

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CHO (voice-over): Barack Obama is about to trade this house for this one. Part palace, part prison.

JAMES CARVILLE, POLITICAL ANALYST: I call it the crown jewel of the federal penal system. I mean it. You know, you don't think about it but you're really going to jail.

CHO: 132 rooms, 35 bathrooms and 412 doors.

CARVILLE: Literally, you can hear the door locked. I mean, you're in there now. The tick and clink.

CHO: Obama will be the most powerful man in world. Yet, he'll have little control over his day-to-day life. He'll never be alone. When he heads to the bathroom, Secret Service will follow him. He can't drive his car, can't take a walk, can't even take a trip to the barber.

BARACK OBAMA (D), PRESIDENT-ELECT: I've got to have my barber come to some undisclosed location to cut my hair. You know, the small routines of life that keep you connected, I think, some of those are being lost.

CHO: His biographer says the President-elect hates living in a cocoon.

DAVID MENDELL, OBAMA BIOGRAPHER: Obama is a guy who likes his freedom and likes his -- you know, likes to do what he wants. His -- you know, his Secret Service team calls him renegade for a reason.

CHO: Once he moves to Washington, he'll have decoys in his motorcade. But likely have to ditch his BlackBerry, too.

Policy may take priority but exercise is not far behind.

MENDELL: He loves to get his workouts. I mean, he could be a cranky guy. If events overtake him, if events overtake the White House, that could be problematic.

CHO: Most agree a small price to pay to hold the highest office in the land.

MENDELL: He's walked with a swagger for a very long time, but this may be, you know, this may humble him a little bit.

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CHO: Perhaps. You know, one anecdote that sort of illustrates just how much Obama prizes his freedom -- when the President-elect was campaigning for U.S. Senate, his biographer told me that he actually wondered whether he should even take him seriously as a candidate. Why? Because Obama was driving himself to campaign events in his old jeep. He was even late to one forum. And when the biographer asked somebody, where's Obama, somebody replied he's parking his car -- John.

ROBERTS: Those days are gone.

CHO: That's right.

ROBERTS: I was interested to hear what Carville said because during my time covering the White House, I always likened it to the most comfortable minimum security prison in the country.

CHO: That's right. He said, you know, it's a comfortable jail. Listen, you get fresh towels everyday, but it's still a jail, you know. There are perks, though. You know, you're in your motorcade, you get to go to baseball games without any traffic, there's Air Force One, of course. And when I asked James Carville what the best perk was -- the power, of course.

ROBERTS: Yes. Bill Clinton always said the best thing about being president was Air Force One. CHO: That's right.

ROBERTS: By the way, he's back in news again today because, you know, all those talks swirling around Hillary Clinton as potential secretary of state. He, apparently, according to the "Wall Street Journal," is offering to open up his life to a little more scrutiny.

CHO: Not only future donations but past ones, too.

ROBERTS: Yes. We'll be talking more about that, coming up. Right now, it's 48 minutes after the hour.

CHETRY: The dog days of fall.

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JEANNE MOOS, CNN CORRESPONDENT: Millions have watched the puppies scratch, nip and wipe out on the wee-wee pad. They fight with Mr. Carrot. They fight with each other.

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CHETRY: Jeanne Moos gets up close and cuddly with the latest Internet craze. You're watching the "Most News in the Morning."

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CHETRY: You know, the announcement of the first dog has probably gotten as much buzz as potential cabinet appointments. We don't have any news on that front, but we do have other puppy news, comes with video that never ever goes away. You've heard of nanny cams. Well, our Jeanne Moos found the puppy version.

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MOOS (voice-over): Who needs a first dog when you can watch six puppies? And who wants to be a dog in the White House anyway, even a high brown New Yorkers imagining a dog's life among politicos.

UNIDENTIFIED MALE: Blundering about the Middle East.

UNIDENTIFIED MALE: And one of them smiles to me and says, and what do you think, Bonnie? What do you think we should do?

UNIDENTIFIED MALE: Then all I could come up with was, woof. I felt like such an ass.

MOOS: There's even the Obama dog blog, featuring a cartoon showing the first dog lifting his leg on a house plant while President Obama says no you can't.

And we can't leave out the latest jingle, howl to the chief.

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MOOS: But now the Obamas say they're going to hold off on getting a puppy until they've settled in.

(on camera): Now, we're going to have to wait for months for this White House dog. We need a puppy fix right now. And here it is. Puppy nanny cams. San Francisco couple set up a Web cam.

JOHN HAM, USTREAM CEO AND FOUND: The family wanted a way to be able to check in on the puppies while they're at work.

MOOS: They use the free service called Ustream TV that let's you stream live video over the Internet. Now, millions have watched the puppies scratch, lick and wipe out on the wee-wee pads. They play with Mr. Carrot and fight with each other. They are Shiba Inu. A Japanese breed born six weeks ago.

Fans have watched their mom feed them on the run. And now they run for the dog dish. Their owners have remained anonymous. All we ever see is a pair of shoes. Sometimes you want to warn them look out the pup just sprinkled where you're about to walk in your bare feet. Occasionally, we're treated to a disembodied hand.

The pups are not for sale. All six are spoken for. They've become such a Web sensation that they are already being spoofed by people pretending to be them. One of the pups has literally wiped the smile off the pumpkin's face. And notice the moving lump as one crawls around under the bed. Maybe the Obamas should consider a puppy nanny cam in the Lincoln bedroom.

Jeanne Moos, CNN, New York.

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ROBERTS: A little boy charged in a double murder. But did the third grader really confess? See the startling police video.

Plus, bailouts, but what about you? Maybe you need a bailout, too

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UNIDENTIFIED MALE: A group of plumbing contractors were applying.

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ROBERTS: The shocking two page application.

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UNIDENTIFIED MALE: So, if they can give 150 billion to AIG.

UNIDENTIFIED FEMALE: Can we have five or ten.

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ROBERTS: Yes, you heard it here. How to apply for a bailout? You're watching the "Most News in the Morning." (COMMERCIAL BREAK)

ROBERTS: Top videos right now on cnn.com. The most popular -- Obama doodle. Something that we first showed you yesterday. Our Jeanne Moos takes a look at what the candidates were drawing while they were out on the campaign trail. One guy paid more than $2,000 for Barack Obama's sketch of fellow senators and he's not looking to sell it even though he has offers of six figures.

Also, polar bears running out of real estate. Scientists way up north in Canada are examining how climate change is eroding their habitat, forcing some to eat each other. That's the polar bears, not the scientist, by the way, to stay alive.

And Senator Joe Lieberman expressing regrets, but saying it's time to move on. A vote allowed him to keep his chairmanship on the Homeland Security Committee. The independent who is part of the Democratic caucus supported John McCain for president and spoke at the Republican National Convention. Those are the most popular videos right now on cnn.com.

The CEOs of Ford, General Motors and Chrysler will be back on Capitol Hill again today, begging for billions saying that the American economy depends on it. After testifying to the Senate Banking Committee yesterday, they were greeted with skepticism and a strong sense that little will be done right away if at all to help the ailing auto industry.

Our Dana Bash is live on Capitol Hill for us this morning.

And I guess to say skeptical is really understating the case because there were so many people in that committee hearing yesterday that just don't believe that if they give the auto industry all this money that the auto industry is going to change.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Absolutely, John. It is fair to say there is not a lot of sympathy up here on Capitol Hill in either party for this auto industry. But still, we do expect them to come here and argue again that the credit freeze threatens bankruptcy for their companies and that would mean millions of lost jobs, health care and pensions.

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BASH (voice-over): One after another, the chief executives of Detroit's big three automakers pleaded for $25 billion taxpayer dollars to rescue them.

RICK WAGONER, CHAIRMAN & CEO, GENERAL MOTORS: This is all about a lot more than just Detroit. It's about saving the U.S. economy from a catastrophic collapse.

ALAN MULALLY, PRESIDENT & CEO, FORD MOTOR COMPANY: We must join our competitors today in asking for your support to gain access to an industry bridge loan that would help us navigate through these difficult economic crisis. ROBERT NARDELLI, CHAIR & CEO, CHRYSLER: We're asking for assistance for one reason. To address the devastating automotive industry recession caused by our nation's financial meltdown.

BASH: But before these auto executives even got to speak, senators on the committee spent an hour and a half expressing heavy skepticism about helping the ailing industry.

SEN. CHRISTOPHER DODD (D), BANKING COMMITTEE CHAIRMAN: Their discomfort in coming to the Congress with hat in hand is only exceeded by the fact they are seeking treatment for wounds that I believe to a large extent were self-inflicted. No one can't say that they didn't see this coming. They're companies have been struggling for years.

BASH: Democrats and Republicans alike suggested that the collapsing economy is not the only source of their woes. It's mismanagement.

SEN. MIKE ENZI (R), WYOMING: Labor costs, enormous legacy liabilities and inefficient production have also contributed to the current crisis in the auto industry. Isn't it prudent for us to consider how the taxpayers 25 billion will go to addressing these issues before we authorize the spending?

SEN. CHARLES SCHUMER (D), NEW YORK: We must be assured that whatever aid we give you is accompanied by a real plan that shows you recognize the direction that this industry must take in order not to survive but to thrive.

BASH: The CEOs answer to criticism by insisting they are restructuring and modernizing. Still, they faced a heavy dose of political reality.

SEN. BOB CORKER (R), TENNESSEE: My sense is that probably nothing is going happen this week. And that this is sort of the beginning of a loan application, if you will.

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BASH: And the prospects for passing this $25 billion auto industry rescue really are incredibly slim right now, John. Democratic leaders are dug in. They still insist that if this is going to happen, the money must come from the $700 billion already approved for Wall Street. Republicans, at least most of them say, that's a non-starter. We expect there to be a test vote tomorrow. I can't find anyone who think that it's likely to pass.

ROBERTS: The beginning of a loan application and it sounds like the credit freeze has extended all the way to Capitol Hill.

Dana Bash for us this morning. Dana, thanks so much.

By the way, we just want to mention to it you, as well, that we're going to be speaking with Mitt Romney, coming up in about 25 minutes time. And the former Governor of Massachusetts is suggesting that the best thing for auto industry would be to let it go into bankruptcy -- Kiran.

CHETRY: That's right. He says, they need a turnaround, not a check. So, it will be interesting to talk to him a bit later.