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American Morning

Bill Clinton to Declare Transparency on Future Activities; Boy Charged With Murder; Battle at Sea: Indian Warship Destroys Pirate Vessel; Mitt Romney Calling for Managed Bankruptcy for Auto Companies

Aired November 19, 2008 - 07:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Meanwhile, it's 7:00 here in New York. The top stories, breaking news this morning.
A battle at sea off the coast of Africa after a slew of hijackings in recent days by pirates, an Indian warship fighting back this morning, shooting their way out of an attack destroying one of their boats in a fiery blaze. We're going to have a live report from Kenya in just about 10 minutes.

It was a bonfire, they say, not arson that started the so-called "Tea Fire" that was so devastating in Montecito in Santa Barbara, California. Authorities are saying that a group left their bonfire thinking that it was put out and they're considering now whether or not to file criminal charges. The fire one of three in the area swallowed more than 200 structures including a monastery and also some celebrity-owned mansions.

Arizona police releasing video of an 8-year-old boy with the boy admitting eventually on the tape that he shot and killed his own father and another man who was renting a room in the home. Our Deborah Feyerick has been studying that hour-long tape. She has a look now.

DEBORAH FEYERICK, CNN CORRESPONDENT: John, Kiran, the 8-year-old Arizona boy manages to keep it together during the hour-long questioning. But when one of the police officers suggest the boy shot his dad and another man by accident and that is the scariest thing that ever happened to him, the child buries his head in his jacket and the story changes. Here's the tape released by prosecutors.

(BEGIN VIDEOTAPE)

FEYERICK (voice-over): When the two officers started questioning the 8-year-old boy in an interview room, police say they thought he may have witnessed a double murder at his house. His father and a friend staying with him have been fatally shot and the child told police he discovered the bodies.

UNIDENTIFIED CHILD: And I saw the door open and I saw (NAME DELETED TO PROTECT IDENTITY). And I ran and I said, Dad, Dad, and then I went upstairs and tried to call him.

OFFICER: And you saw him? OK.

UNIDENTIFIED CHILD: And there was blood all over his face, I think. And I think I touched it.

OFFICER: You think you did touch it? What did you do when you touched it?

UNIDENTIFIED CHILD: I just kind of checked if he was a little bit alive.

OFFICER: You checked if he was a little bit alive? OK. And how did you do that?

UNIDENTIFIED CHILD: I kind of just went like that.

OFFICER: With your foot?

UNIDENTIFIED CHILD: I think so. Yeah.

FEYERICK: This interview took place less than 24 hours after the shootings. The Arizona boy manages to keep calm but after 45 minutes when one of the police officers suggests the boy shot his dad by accident, the child's story changes and police say he confesses.

UNIDENTIFIED CHILD: I think I was holding the gun. And I think it might have gone off.

FEYERICK: The boy apparently used a .22 caliber rifle his dad bought him for hunting. It's unclear why the friend was shot, but the boy told police he shot his dad a second time to stop the pain.

UNIDENTIFIED CHILD: I didn't want him to suffer. But then I went outside then I saw -- get that dirt bike (ph), when I (INAUDIBLE) -- then I saw (NAME DELETED TO PROTECT IDENTITY) and I think the gun went off at that time.

FEYERICK: Prosecutors say the third grader shot each man twice stopping to reload. After telling police he was often spanked, the child appears to wipe tears from his face. Police say there was no evidence of abuse.

CHIEF ROY MELNICK, ST. JOHNS POLICE DEPARTMENT: He's charged with premeditated murder, which means he planned it, carried it out methodically and he was very skilled in what he did. His father was a hunter, so I believe the child was trained as a hunter.

FEYERICK: The child has entered no plea. His lawyer says the boy was never read his rights and that a lawyer or parent should have been with him.

OFFICER: What do you think is going to happen?

UNIDENTIFIED CHILD: I'm going to go to Juvy?

FEYERICK: The boy is being charged as a juvenile.

(END VIDEOTAPE)

FEYERICK: The child's mother had just finished visiting him for the weekend. She's reported saying her ex-husband bought their son the rifle for hunting, a common pastime in that part of Arizona -- John, Kiran.

CHETRY: Deb Feyerick for us. Thanks so much.

Well, you know, the boy's age and also the nature of this tape that police are calling a confession has, of course, led to a lot of questions. So we're bringing in our AMERICAN MORNING legal analyst Sunny Hostin.

You've been a prosecutor. What are your impressions, first of all, when you see that tape?

SUNNY HOSTIN, AMERICAN MORNING LEGAL ANALYST: I have to say it seems outrageous to me. They have two women interviewing him. They have guns though. These are police women. I really have never seen anything like this.

And as you said, I was a federal prosecutor. I interviewed child victims, just dozens and dozens of them, and this has never how it's done. I saw no parent in that room, Kiran. I saw no attorney in that room. I don't understand how this could have happened.

For me, as someone, as a lawyer, someone that was in law enforcement, it was completely out of bounds -- out of bounds.

CHETRY: So there's a lot of questions. Why would they risk the case or even their investigation by not having somebody in there with him?

HOSTIN: I have no idea. It's something that I've been thinking about. How do you do something like this? It just doesn't make any sense.

And to release it, I mean, it's been reported they said they released it because it was public record. But this is an ongoing criminal investigation, a murder investigation. I can't imagine that this something that needed to be released. It doesn't make any sense.

CHETRY: Bottom line, if this does go to trial, as soon as if it will, would they be able to admit this in court?

HOSTIN: No way. No way. I don't think anyone -- anyone will admit that. Any attorney that's going to defend this 8-year-old, and remember we're talking about a baby, we're talking about a child, is going to move to suppress that tape and they have all the grounds in the world. Again, no parent present which is really the protocol here, the basic, basic baseline protocol and no attorney.

My understanding is that they never read him his rights. How do you read an 8-year-old their rights? And the bottom line is even if it was read to the child, he could not have waived his rights to an attorney. They don't understand Miranda rights. And so, really, when you look at this, it's an anomaly. It's just something that should not have happened, and I think they bungled the case.

CHETRY: Yes. A lot of unanswered questions and just sad, the whole thing from top to bottom.

Sunny Hostin, great to see you. Thanks.

HOSTIN: Thanks.

CHETRY: John?

ROBERTS: It's now six minutes after the hour. We got the "Most Politics in the Morning." And late breaking news now out of Alaska.

Word that Senator Ted Stevens, the longest-serving Republican ever and a convicted felon, is out. The "Associated Press" reporting that he lost his re-election bid to Anchorage Mayor Mark Begich by less than one percent.

A jury convicted Stevens on seven felony corruption charges last month then he ran for the office anyways. His defeat moves Senate Democrats now within two seats of a filibuster-proof 60-vote majority, and would appear to also end speculation that Governor Sarah Palin might seek an entry into federal politics.

Two races still remain undecided in the Senate but there could be a recount.

Barack Obama beginning to settle on his team. Sources say he wants Eric Holder to be his attorney general. If (INAUDIBLE), he would be the first African-American to head the Justice Department. He's a former number two man there.

Another ex-Clintonite who was part of the big controversy on President Bush's, President Clinton, rather, final day in office when Clinton pardoned 140 people including the fugitive financier, Marc Rich.

And also breaking now, former President Bill Clinton reportedly ready to open up the books to give his wife a crack at being secretary of state. The "Wall Street Journal" reporting this morning that President Clinton has offered to release information related to any future business or charitable activities. His financial ties overseas became a big issue during Senator Clinton's presidential run.

Our Zain Verjee is working her sources from the State Department. What's exactly is the potential conflict of interest between Hillary Clinton being secretary of state and Bill Clinton's dealings (ph)?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, here's the thing. Bill Clinton, John, has raised hundreds and millions of dollars for his charitable foundation including things like his presidential library. Most of it has reportedly come from foreign donors from countries like Saudi Arabia or Morocco.

He's been paid millions as well for speeches he gives all around the world. John, the fear is here that the former president's charitable and his business dealings could just end up undermining Hillary Clinton's ability to go off and conduct foreign policy. I mean, what if she needs to get tough with countries and knock a few heads together and he's doing business with them?

So what they're doing, clearly, is they're trying to find a way for him to continue his work without complicating her work as secretary of state if she takes it and he's just going to be forced to be more transparent -- John.

ROBERTS: Even if his finances are cleared, could he still potentially be a problem for Hillary?

VERJEE: He could, yes. I mean, the danger is that as a former president, Bill Clinton is out there in the world. He's making speeches on the world stage and he could make pronouncements or comments about U.S. policy that could create difficulties or confusion.

You know, former presidents have conflicts with U.S. policy before. If you look at Jimmy Carter, for example, I mean, he really angered the Bush administration by going off and meeting with the Palestinian militant group, Hamas, that the U.S. has labeled a terrorist group and has been trying to isolate. Secretary Rice was really annoyed about that. So that kind of situation were it to arise could be a problem, and I'm sure they're discussing that too.

ROBERTS: And as we all know, he has some deep and long standing ties with a lot of people the world over. We'll see.

VERJEE: Yes.

ROBERTS: Zain Verjee for us this morning. It's great to see you. Thanks, Zain.

VERJEE: You too.

CHETRY: Well, the new Obama cabinet we've been talking about could have a lot of familiar faces actually. Many of those being vetted have Clinton White House jobs on their resumes. So is it cabinet deja vu?

Also before his political life, Mitt Romney was a successful businessman. In a "New York Times" op-ed today, his take on fixing the auto industry. But you don't have to just read it. He's going to be hear live to talk about it with us at 10 minutes after the hour.

DAVID MCKENZIE, CNN CORRESPONDENT: I'm David McKenzie in Nairobi, Kenya. More pirate attacks off the coast of Somalia coming up on the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Breaking news this morning on a story that we've been following for days.

An Indian warship trading fire with so-called pirates off of a mother vessel of the Horn of Africa, leaving the pirate ship ablaze.

The map shows you all pirate run-ins that have occurred in the past year in that area of the Indian Ocean and up into the Arabian Gulf as well. And this week alone, pirates have hijacked a Thai fishing vessel, a Chinese-flagged Iranian cargo ship, a massive Saudi- owned oil tanker.

Our David McKenzie has been following every angle of this story. His live this morning from the Kenyan capital of Nairobi.

And, David, just an incredible flurry of piracy there off the coast of the Horn of Africa.

MCKENZIE: That's right. It's quite astonishing really. I mean, we've been following this closely over the past few months. But in the past few weeks, it's just gone out of control. That latest news of an Indian frigate which attacked pirates on a mother ship, they managed to get those pirates. But that's really the exception rather than the norm. We people are extremely worried especially businesses in this region that the scale and the scope of this will just increase.

(BEGIN VIDEOTAPE)

MCKENZIE (voice-over): The super tanker more than three times the size of an aircraft carrier. This is the tiny pirate skiff usually operated by a ragtag group of armed pirates. Yet Somali pirates on just such a vessel were able to capture and dock this giant packed with Saudi oil, the Sirius Star. They nabbed their cash way off the Kenya coastline and the top brass is taking note.

ADM. MIKE MULLEN, CHAIRMAN, U.S. JOINT CHIEFS OF STAFF: What I'm seeing is a reduction in the overall of successful piracy attempts but certainly we've seen an extraordinary rise in the overall numbers.

MCKENZIE: In fact, these are now the most dangerous waters on the planet. With the International Maritime Bureau reporting more than 80 attempted attacks this year and more than 30 hijackings. Right now, at least a dozen ships are being held.

This despite sophisticated warships patrolling the coast in search of pirates. But this area is bigger than Texas, and the Navy say it's just too much water to cover.

Pirates hold these waters hostage with their automatic weapons and RPGs. Once a boat is hijacked, the Navies won't attack because they fear for the hostages. But the man in charge of Somalia's transitional government suggests a change in tactics.

NUR HASSAN HUSSEIN, PRIME MIN., TRANSITIONAL FED. GOVT. OF SOMALIA: When pirates are using force to hijack the boats and the ships, I think the only way to prevent or at least to save the hijacked ships and the crew is to use the force.

MCKENZIE: But until these dangerous waters can be properly policed, the Somali pirates are sure to rule the waves.

(END VIDEOTAPE) MCKENZIE: Well, John, what happens is once those ships are hijacked by pirates they take them off the coast of Somalia, and then they wait and negotiate with the companies. And those ransoms, John, they're running from hundreds of thousands, if not, into the millions of dollars.

ROBERTS: And right now, they're controlling about $100 million worth of oil on that tanker. So they've got some pretty good leverage.

David McKenzie for us in Nairobi, Kenya. Thanks so much, David.

It's 15 minutes now after the hour.

CHETRY: Memo to the president. Sitting down with the enemy.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The Bush administration's policy of not talking to those with whom we disagree has been a dismal failure.

(END VIDEO CLIP)

CHETRY: Christiane Amanpour on the political pressure for Obama to go face to face with Iran.

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

(COMMERCIAL BREAK)

CHETRY: We got breaking news this morning on the transition to power for the president-elect, Barack Obama. The "Wall Street Journal" is reporting this morning that former President Bill Clinton is hammering out a deal with the president-elect to open his books about future business and also charitable activities. It's a big move that may give his wife, Hillary, a much better chance at becoming the next secretary of state.

Joining us now on the phone is the reporter who broke the story, Monica Langley, the deputy Washington bureau chief for the "Wall Street Journal".

Thanks for being with us this morning, Monica.

ON THE PHONE: MONICA LANGLEY, DEP. WASHINGTON BUREAU CHIEF, "WALL STREET JOURNAL": Good morning. My pleasure.

CHETRY: Tell us some details about what went -- what went on in trying to hammer out any possible agreement on Clinton.

LANGLEY: Well, you know, everyone was surprised when Obama had this secret meeting, initially secret meeting with Hillary last week. And the last two days on Monday and Tuesday, her closest aides and the two people heading up transition for Obama have been in almost non- stop meetings or phone contact to hammer out what Bill Clinton needs to do in order for Hillary Clinton to be the next secretary of state. CHETRY: Yes. Your reporting goes on to say that the former president would also seek among other things clearance from two separate entities, both the White House counsel and also the State Department Ethics chief, on any future dealings and possible speeches. How significant is that?

LANGLEY: That's a pretty big deal for a spouse to agree that he won't take any action without clearance, and especially for a spouse as high-profile and popular and internationally known as Bill Clinton. So, basically, what he's willing to do is put much of his high-profile life on hold for his wife to be secretary of state. And, you know, he also would step back from the day-to-day operations of the William Clinton Foundation...

CHETRY: Right.

LANGLEY: ... which holds his presidential library and the global -- the Clinton Global Initiative.

CHETRY: Yes. Monica, I want to ask you about this situation because this cloak of secrecy around his foreign financial ties, there was a lot of criticism and buzz about that when his wife was running for president. It seems like a political gamble or a can of worms, if you will, for the Obama camp. Why are they wanting to tread into these waters?

LANGLEY: That's a great question. That's what everyone is asking. But, you know, this was Obama's initiative as someone told me last night. This is not something that Hillary pushed for. In fact, she was relatively surprised and excited when he first asked her.

The reason he would do this are two things. One is people have made much of the team of rivals notion that his idol Abraham Lincoln did when he became president. But the second thing that has not gotten as much attention is that, believe it or not, Obama and Hillary Clinton got a really good relationship this fall when she began campaigning for him. After such a bitter Democratic primary, the two of them really hit it off and towards the last few weeks of the campaign, she kept calling into the Obama headquarters in Chicago and said give me more dates. I can go more places.

CHETRY: Wow. All right. So that is also very interesting as you said and it didn't get a lot of play. So he basically thinks she'd be great for the job of secretary of state.

We'll see how her husband's and our former president's dealings factor into all of that. Great reporting, Monica. Thanks for being with us this morning.

LANGLEY: My pleasure.

CHETRY: It's 21 minutes after the hour.

ROBERTS: The Clinton cabinet.

(BEGIN VIDEO CLIP) LESLIE SANCHEZ, REPUBLICAN STRATEGIST: President-elect Obama may just cut and paste.

(END VIDEO CLIP)

ROBERTS: Everything old is new again. Jason Carroll on why Obama's change is being delivered by friends of Bill.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's not as if the only competent people are veterans of the Clinton administration. So he's got to be very careful.

(END VIDEO CLIP)

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

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RICK WAGONER, GENERAL MOTORS CORP CHIEF EXECUTIVE: This is all about a lot more than just Detroit. It's about saving the U.S. economy from a catastrophic collapse. In short, helping the auto industry bridge the current financial crisis will not only prevent massive economic dislocation now, it will produce enormous benefits for our country later.

(END VIDEO CLIP)

ROBERTS: Well, welcome back to the "Most News in the Morning." That was General Motors Chief Rick Wagoner testifying on Capitol Hill yesterday saying that an auto industry bailout will have "enormous benefits for our country later." A lot of Republicans disagree with that. We're "Minding Your Business" this morning and your tax dollars.

Joining us now is former presidential candidate Mitt Romney who's got an opposite opinion to that of CEO Wagoner. He joins us this morning from Boston.

Governor, let me just read a little bit from an op-ed piece that you've got in the ""New York Times" today on General Motors, where you say, "If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American auto industry goodbye. It won't go overnight but its demise will be virtually guaranteed."

What's the basis for that analysis, governor?

MITT ROMNEY (R), FMR. PRESIDENTIAL CANDIDATE: Well, the U.S. auto industry right now is uncompetitive. It has high labor cost, health care costs, enormous legacy costs. That means retiree costs. It has an enormous burden from idle workers that it pays for. It has real estate costs, massive burdens that make it uncompetitive and just paying it to stay in business even though it's uncompetitive will mean down the road more and more loss of market share and ultimate demise.

And so what needs to be done before there's any help to support these companies is to get them structured properly so they can be competitive, can be viable. We're not going to let these companies go away. We're not going to have the industry disappear, but we want to make sure to take advantage of the opportunity that exist right now to get them restructured properly so they can be viable long term, not just on the way down.

ROBERTS: So you're calling for a managed bankruptcy in this op- ed piece. And let me read a little bit more from it.

You say, "In a managed bankruptcy, the federal government would propel newly competitive and viable automakers rather than seal their fate with a bailout check."

But what about this argument that many people have that no one would buy a car from a company in bankruptcy because they want to be guaranteed that that company will be around to service that car, parts will be available for it?

ROMNEY: Pretty straight forward and that is that government makes it very, very clear that these companies are not going away. The government would stand behind the warranties, for instance, saying we're going to be there, make sure the warranty will always be fulfilled.

And the companies are going to be there. We're going to support them. We're going to help propel them. We're going to get them strong, but we're not going to keep putting money into them while they're frankly uncompetitive long term.

So we're going to get them competitive, right size, highly productive. We're going to invest in new technologies. We're going to be there.

These companies are not going away. We're going to guarantee a warranty, but the last thing we're going to do is just put money into them while they continue to lose share and lose adherence.

Look in a place like California. You know, you go out there, there are not a lot of American cars out there. It's a (INAUDIBLE) what's going to happen across the country until we restructure these companies, get their costs down, make sure that they're competitive with the foreign makers. And once we do that, then the government can help propel their success.

ROBERTS: You know, we all remember that you won the Michigan primary back there in the early going this year, the presidential campaign. You won it. Many people say partly because of your approach to the auto industry and your pledge that if you were president you would save the jobs there. Let's just kind of rewind the clock here a little bit and listen to what you said back in January.

(BEGIN VIDEO CLIP) ROMNEY: The auto industry and all its jobs do not have to be lost. And I'm one man who will work to transform the industry and save those jobs.

(END VIDEO CLIP)

ROBERTS: You said you would work to transform the industry. You also said you would work to save jobs. But also in your op-ed today, you write, "Bankruptcy would permit companies to shed excess labor." So, in effect you wouldn't be saving all those jobs?

ROMNEY: Excess labor costs and I will fight to keep every good job. Let me tell you, the British went through this some years ago.

ROBERTS: You didn't say excess labor costs, you said excess labor.

ROMNEY: The British went through this a number of years ago, John. They thought that to save the jobs they just give money to the companies on their way down. And ultimately, the companies have been liquidated and disappeared.

The best way to save jobs in the Detroit auto industry and to grow jobs ultimately is to get these companies to the proper scale so they will be able to be competitive long term, creating more jobs and build a highly competitive U.S. auto industry.

There is no reason that BMW, Toyota, Honda, Nissan, can make cars in our country and be successful and we can't. We can do it. But we can't do it if we have labor costs and excess burdens placed upon us, this idle labor crew that we have that's a massive burden on the industry. But these things have to be taken out so we can become a viable competitive industry and, if you will, be the kind of leader that we should be around the world and create jobs.

ROBERTS: Governor Romney, it's good to see you. Thanks for being with us this morning. We'll see what happens.

ROMNEY: Thanks, John. Good to be with you.

ROBERTS: Take care.

CHETRY: We're just coming up at 7:30 here in New York. A look at the top stories this morning.

Just a day after Ford CEO was on Capitol Hill asking for billions in bailout money for the auto industry, Ford is announcing at the L.A. car show that it plans to beat Japanese car maker, Toyota, at the hybrid game. The company adding hybrid versions of the Ford Fusion and the Mercury Milan to its lineup.

Medical experts are calling it a milestone. In London, doctors announcing a successful transplant of a human windpipe that was engineered with a patient's own stem cells. Now according to the newly published study that ensured that the body won't reject the new organ. Our Dr. Sanjay Gupta is going to be having more on this for us in a story in just a few moments.

Also the new first daughters, Sasha and Malia Obama getting a tour of their new home at the White House from the outgoing first daughters Jenna and Barbara Bush. Michelle Obama and her daughters received the invite from First Lady Laura Bush. The girls also visited their top choices for schools in D.C.

And just 62 days now until President-elect Obama takes his oath of office. But it's his cabinet that starts to take shape. Some politicians and pundits are having a bit of deja vu from the Clinton administration. This after being the candidate of change, some are asking. Well Jason Carroll has the details for us this morning. You know this morning we're talking about former president Bill Clinton and how his influence would factor into any potential secretary of state position of his wife.

JASON CARROLL, CNN CORRESPONDENT: Yes, I think a lot of people, at least a lot of critics are not wanting to hear so much from the Clintons at this point. You know the reality is though that the President-elect has to find people with experience. He doesn't want to make some of the same mistakes Clinton did when he was putting together his team the first time around. But Obama's critics ask does that mean he has to tap so many people tied to Clinton?

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: We are going to change the country and we're going to change the world. Thank you, everybody, god bless you. God bless the United States of America.

CARROLL (voice-over): It became the corner stone of his campaign.

OBAMA: We need to bring a fundamental change to Washington.

CARROLL: He vowed to bring change but republican critics say so far they are seeing more of the same from President-elect Barack Obama.

LESLIE SANCHEZ, CNN POLITICAL CONTRIBUTOR: I think several individuals are very frustrated to think that President-elect Obama may just cut and paste some of the democratic operatives from the Clinton administration and put them into his White House.

CARROLL: One might expect to hear that from critics on the right but there are some on the left too. Robert Kuttner, a liberal and author of "Obama's challenge" said the president-elect should broaden his recruiting efforts.

ROBERT KUTTNER, AUTHOR "OBAMA'S CHALLENGE": It's not as if the only competent people who ever served in government or who are capable of serving in government are veterans of the Clinton administration. So he's got to be very careful of how many Clintonese he appoints to tough level government policy.

CARROLL: More than half the people named to Obama's transition or staff post have ties to the Clinton administration, most recently Eric Holder was offered the post of attorney general. Holder served in the Clinton administration as deputy attorney general to Janet Reno. Former Clinton's adviser Rahm Emanuel will become Obama's White House chief of staff. President Clinton's former special counsel Lanny Davis lobbied publicly for Obama to choose Senator Clinton as his running mate during the campaign despite what critics say Davis says real change is about policy not people.

LANNY DAVIS, FORMER SPECIAL COUNSEL TO PRES. CLINTON: What this conversation is about is laughable if you ask people in America what they care about. They care about the economy, jobs, education, and health care. They don't care about whether somebody fills a particular box from a prior administration.

(END VIDEOTAPE)

CARROLL: And Obama's transition spokesman gave us a statement saying "President-elect Obama is committed to putting together a confident team that is diverse in many ways including experience. Serving in high level positions whether in government, in the private sector or in public service is seen as a positive." Critics say too many Clintons is a negative.

CHETRY: All right. Good stuff. Thanks, Jason.

CARROLL: All right.

ROBERTS: Well, the election of Barack Obama to the highest office in the land is seen by many as a game changer on the international stage. In fact, the president of Iran actually congratulated the president-elect. How will our country's relationship with Iran unfold in these new administration? Our chief international correspondent Christiane Amanpour has today's "Memo to the President."

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Restore prosperity and promote the cause of peace.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice-over): Mr. President you have already broken the mold by saying that you want to start unconditional talks with adversaries such as Iran. And with that country's nuclear program and stability in the wide Middle East region a top priority European allies are encouraging you to start that dialogue.

BERNARD KOUCHNER, FRENCH FOREIGN MINISTER: Is there an alternative if you want to talk about Afghanistan, you have to talk to Iran. If you want to talk to the Middle East, Iraq, Syria, you have to talk with Iran. So let's be realistic, let's talk with these people.

AMANPOUR: Just what five former republican and democratic secretaries of state recommended, even before the election. Now, Iranian President Mahmoud Ahmadinejad has broken with the past himself by sending an unprecedented letter of congratulations on your election. His letter reads, "the great nation of Iran welcomes basic and fair changes in U.S. policies and conducts, especially in the region.

OBAMA: I will be reviewing the letter from President Ahmadinejad, and we'll respond appropriately.

AMANPOUR: Iranian officials noted that at least you called him president and didn't dismiss the overture as President Bush had done previously. Fellow democrat and former Senate majority leader George Mitchell who also brokered a peace deal in Northern Ireland believes the U.S. policy towards Iran will change.

GEORGE MITCHELL (D), FORMER SENATE MAJORITY LEADER: It's quite clear that the Bush's administration's policy of not talking to those with whom we disagree has been a dismal failure both in the case of Iran and in the case of North Korea.

(END VIDEOTAPE)

AMANPOUR: Iranian officials are discussing the U.S. election and what it might mean for relations that were ruptured 30 years ago. Iran is expected to conclude that fences should be mended but only if its based on shared interest and mutual respect. John.

ROBERTS: Christiane Amanpour for us this morning. Christiane, thanks so much. Tomorrow in our on going "Memo to the President" series, Homeland Security correspondent Jeanne Meserve asks just how vulnerable is the United States to cyber terrorism. That's tomorrow on the most news in the morning.

CHETRY: Well, many Americans would like their own personal economic bailout, right. But coming up you won believe who wants a piece of the money pie and isn't afraid to ask. It's 36 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: You know many Americans think that they should be included in the government's economic bailout plan and some people actually aren't afraid to ask. Our Carol Costello joins us from Washington with a persistent question that's been echoing through the Treasury Department, where's my money? Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Exactly. What about me? You know if the big three can ask for some cold hard cash from generous taxpayers, what about me? Why can't I have some of that bailout money too? Well, a lot of people are wondering that very same thing.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): Want a piece of that $700 billion pie? Lots of Americans do. And we're not talking just the big three. But boat manufacturers and Hispanic plumbers. Really. The Treasury Department told me you would be amazed. REP. BARNEY FRANK: Gentleman from Texas.

COSTELLO: Members of Congress are too and they are worried.

REP. JEB HENSARLING (R), TEXAS: I read press reports recently that a group of plumbing contractors were applying for portions of the T.A.R.P. funds in order to refurbish some foreclosed properties making their case that qualify them as a financial institution. Can you give me a clearer black and white definition of what a financial institution is?

HENRY PAULSON, TREASURY SECRETARY: Congressman, I can't. We have a broad definition. We got very broad authorities of powers but we certainly are not going to give money to plumbing contractors.

COSTELLO: Did you catch that? If he wanted to Paulson could dole out cash to whoever he chooses. That in a simple two-page application for bailout funds has sparked bailout fever. Treasury officials told me a bait and tackle shop asked for a line of credit, even a time share company filled out an application. Oh, and states across America are interested too, like California.

KAREN BASS (D), CALIF. STATE ASSEMBLY SPEAKER: I think a couple of months ago none of his would have envisioned making a request like this from the federal government. But who would have envisioned a $700 billion rescue package?

UNIDENTIFIED MALE: So if they can give $150 billion to AIG --

BASS: Can we have five or ten?

(END VIDEOTAPE)

COSTELLO: Everybody is asking the same thing. Philadelphia, Atlanta and Phoenix have directly asked for bailout cash too. Of course, just because you ask for bailout money doesn't mean you'll get it unless maybe you're a banker or a financial institution. Some 21 institutions across the country received anywhere from 17 million to nearly $7 billion and as you know, Kiran, it isn't over yet.

CHETRY: No, it's not. And this is exactly what a lot of critics feared in the first place. Where does it end? Where do you draw the line? And clearly as Henry Paulson said he has brought powers, that's up for him to decide.

COSTELLO: I think we should do a Carol and Kiran, Inc. I have the application right here. Want to apply?

CHETRY: Two pages. You can fill it our in a heartbeat. Hey.

COSTELLO: Put it together later.

CHETRY: Exactly. All right. Take care, Carol. Thanks.

ROBERTS: Well take a look out your window right now. Does it look like this? If not it could when you get up tomorrow. Our Rob Marciano tracking the latest snowy forecast from the weather center. He's with us. Hey, Rob.

ROB MARCIANO, CNN, METEOROLOGIST: Norman Rockwell, eat your heart out. There are still some leaves on the trees. Temperatures below freezing across much of the northeast. And there's really no escaping it down south. The complete forecast is coming up when "the most news in the morning" continues. It's 41 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: All right. Welcome back to AMERICAN MORNING. Extreme winter weather slamming the northeast this morning. In fact, our I- reporter Mark Eberly is seeing nothing but white in his home town of Erie, Pennsylvania. He said at least eight inches of snow came down before he picked up his video camera. Eight inches in Erie. But despite the wintry blast, he was still able to drive his kids to school the other day. You know, Rob, I spent a little bit of time in Erie, Pennsylvania myself. I had in my car, I had studded tires in all four and I also used to keep sand bags in my trunk to prevent - it didn't help though.

MARCIANO: Did that car make it through your first market? Did you survive without a crash?

CHETRY: I actually brought it with me when I went somewhere else. But the funniest thing is the reason I did that, my first accident that I got into, I sideswiped my boss's car in front of the station.

MARCIANO: That's the way -

CHETRY: I was on the job for two weeks.

MARCIANO: Yes. It turned out OK. We're happy to have you, Kiran. All right. Check it out. You mentioned that we got cold growing across parts of i-90. Lake-effect snows continue there. Temps in the 20s just about every where including some spots down south. So there's no escaping this cold. And guess what? There's reinforcing shots of cold air that are going to be driving down south. Check out some of these snow totals. South Dayton, New York, not Ohio, 30 inches there. Fair Haven, New York, 14 inches. And as we go New York 11 inches. New York not the only area.

Check our this video out of North Carolina. I mean it but certainly a little squally (ph) activity there yesterday afternoon. In the south, my friends to cover, maybe the wind shield with white. All right. Live shot from Albany, New York. Good morning, Albany. 27 degrees the current temperature there. You got a little bit of cloud cover. You might see a flurry or two. That's the capital of New York if you're doing your geography. It shouldn't be all that bad but there are still lake effects and no warnings out for us as we go.

And northern part of Cayuga County, that's where my alma mater is, Finger Lakes. There you see it, just west of Syracuse. Maybe a few more inches piling up. And then here's your reinforcing shot of cold air. And this one will drive all the way down to the south so basically the eastern half of the country over the next several days pretty much right through the weekend we'll see numbers similar to what you're seeing now, 30s and 40s across the northern tier, maybe 50s down south. The only place to warm up is Texas or southern California. So head that way, you don't need sand bags. You don't need studded tires unless you are heading to the mountains. Kiran.

CHETRY: All right. But you're still in trouble if you hit your boss' car even in California. Rob, thanks.

MARCIANO: See you.

ROBERTS: She's about to be first lady but Michelle Obama says her girls still come first. So how does a high-profile working mother like the wife of the president master that balancing act. See what the expert say. And a major medical milestone this morning. Dr. Sanjay Gupta is here to tell us about a radical organ transplant operation on a young mother of two. It's the first and we're "Paging Dr. Gupta" for details.

(COMMERCIAL BREAK)

ROBERTS: 49 minutes now after the hour. A team of researchers from Europe came together to accomplish what's being hailed as a milestone in medicine as they announce the first successful transplant of a human wind pipe that was engineered with the patient's own stem cells. Let's listen to how the surgeon described it.

(BEGIN VIDEO CLIP)

DR. PAOLO MACCHIARINI, UNIVERSITY OF BARCELONA: The jump between an animal investigation and the human investigation have been sort of a mystery to me as well but we succeeded and the fact that she's playing with her children is the most beautiful gift that I could have in my career.

(END VIDEOTAPE)

ROBERTS: Basically saying that they've been quite successful in doing this in animals. It's always difficult to take that to humans, but they were successful this time. We're "Paging Dr. Gupta," CNN's chief medical correspondent. He's in New York for us this morning. This is pretty incredible. I did stories a decade ago on just the naked aspects of tissue engineering and this is amazing. They actually did it.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: We've been talking about stem cells for some time. The idea that you could create the organ, people have been talking about this for a long time and transplanted successfully is exactly what they did.

It's a milestone and behind that milestone is this 30-year-old woman that they were talking about. The story goes that she developed terrible tuberculosis. Her lungs started to collapse and she developed this kind of narrowings as you see right here which is a problem.

ROBERTS: Stenosis of the bronchus. GUPTA: Stenosis, exactly. A former medical reporter here. But this was the problem and she was going to need an entire left lung transplant, instead what they did and this is the really fascinating part is that they decided to just transplant this part of her overall bronchi, her trachea and this part down here as well.

The way that they did it was fascinating. And we got some images of these. They took a donor trachea of a 51-year-old man who had passed away in a car accident and over six weeks, they starting to strip away all the cells from that particular trachea.

So all it was essentially a matrix that over time they took the woman's own cells and some of her stem cells from bone marrow and started to repopulate this piece trachea, and that's it. That's where you're looking out. That's the first solid organ stem cell transplant.

ROBERTS: They used it basically as a scaffle on which to see the sells. The trachea has got lots of cartilages to maintain its structure.

GUPTA: That's right. It's got lots of different cells in there and all those cell types were just sort of repopulated over time. and that's it. That is the solid organ transplant there and we're going back to that first image again. when they took this piece of trachea and bronchi and transplanted back into the woman herself and as I said, she really responded well. After 10 days, she was out of the hospital and you can see here, this is the completely normal part of the trachea and bronchi. Again, she's out of the hospital and doing great.

ROBERTS: So this question I have about all of these tissue engineering and all that seeding cells, how do you establish a blood supply so that it doesn't die?

GUPTA: Within 10 days, she starts to develop her own blood supply. So blood, lot of vessels started to grow in this part of the trachea. Again and it's call neovasculrization, the blood cells that are starting to develop on top of the trachea and it's going to survive. She was out of the hospital in 10 days and no immunosuppressant drugs, something as often as with transplants. She was able to walk two flights of stairs, playing with kids. As the surgeon said, this is a woman who was essentially was debilitated. This is an exciting stuff -

ROBERTS: It's amazing.

GUPTA: You really can't get a sense of that.

ROBERTS: Incredible. Thanks for bringing it to us.

GUPTA: No problem. All right. Thank you.

ROBERTS: Appreciate it.

(BEGIN VIDEOTAPE) ROBERTS (voice-over): What drives a parent to abandon? Not a newborn but a child they've loved for years.

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

UNIDENTIFIED MALE: There are parents who are so desperate.

ROBERTS: Loophole in a law and who fell right through it.

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

ROBERTS: Plus, chic economics 101, how to look like a million when you're strapped for cash.

UNIDENTIFIED FEMALE: Right now we're all recession-proof.

ROBERTS: You're watching the most news in the morning.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST "THE LATE SHOW WITH DAVID LETTERMAN": Barack Obama's 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. He's got his mother-in-law and he's talking about Hillary for secretary of state. So you got your mother in law and you got Hillary Clinton. Boy, it sounds like smooth sailing to me. I mean, come on. Hello.

(END VIDEO CLIP)

CHETRY: Well, this morning the future first family is preparing for life inside of the White House and the incoming first lady, Michelle Obama, says once in Washington that her daughters Sasha and Malia will come first. Her decision has reignited the debate over the challenges facing women when it comes to work and family.

And joining me now is Jolene Ivey. She is the co-founder of mochamom. It's a support group for stay at home mothers of color. And also she is a contributor to the root.com and also joining us Michelle Martin, the host of the national public radio program "Tell me More."

Thanks to both of you for being with us.

Both of you guys write very eloquently about this debate for Michelle Obama. And Jolene I'll start with you. You talk about you gave up your career and chose to stay home and raise your children as well. In this situation we've heard a lot from Michelle Obama about how she's going to be mom in chief and that is what her first priority is going to be. What is she going through right now? Because she had a very successful career prior to this. JOLENE IVEY, MARYLAND STATE DELEGATE: Well I can't say what Michelle Obama's going through, because she's certainly going through something a lot more exciting than I did. It's so wonderful that she's going to focus on her children, and I'm sure she always has. But she's going to be a very public mother and everybody's going to be watching how she does it. And this is such a wonderful chance for people around the world to see how good mothering is done. And I think she's a great mom. I think her girls demonstrate that, just by being such confident, well-behaved girls.

CHETRY: And, Michelle, you right in your root.com article that Michelle Obama is giving up something as well that a lot of people perhaps haven't focused on because of how much she's gaining, but you wrote "not enough has been said about what she is giving up, not just her privacy, which is a given but her independence and her vision for herself, not to mention her own income. And in the article you write about how this is a very different notion, at least historically, for African-American women. Explain that.

MICHEL MARTIN, FMR. CORRESPONDENT, ABC: Well I mean, I agree with Jolene, there is so much to celebrate here. African-American women traditionally, culturally in this country have not been given all the adoration and praise for taking care of their own children.

I mean who are the cultural icons if we think of black women, Aunt Jemima and Mammy who were celebrated for taking care of other people's children. So for a lot of people it's a very wonderful thing that here's an African-American woman, a professional, who has the choice to take care of her own children and to focus on that.

But what I wanted to write about is the fact that she is giving up something and I don't think that enough has been about that. There is a sense of loss. She is a very accomplished person. You know Princeton undergrad, Harvard Law School, high powered, a public servant in her own right. And there is a self-effacement that has to take place and I just think we should just have one moment to acknowledge, to recognize that she, too, is a public servant.

And frankly also there is a slightly different model. African- American women have tended to have more financial equality in the homes. Their incomes have been necessary to the survival and achievement of the family and there is something about giving up your own income, I think people should acknowledge that.

CHETRY: And Jolene, you know, the pressure as well, because as we say, this is going to be the first African-American family in the White House. This is the first time in many, many years that we see young kids in the White House. What are people going to be looking to Michelle Obama for, in terms of making her a role model, which to many she is?

IVEY: They are going to see what kind of mother she is, how does she discipline her children, for example. There are going to be times when she's going to have to rein in little Sasha.

I mean she's adorable, but she's a kid. And I think that that is going to be a wonderful thing to see. We're also going to be looking at what kind of issues she's going to take on. Now, that's how she is different from the rest of us, who have been at-home moms.

Nobody's asking me, really, all the 16 years I was home what was important to me as far as world issues And social issues. And she's got an opportunity to put her imprint on what our country is going to be focusing on for the next four years. And I think that's great.

CHETRY: And Michel before we leave, I want to ask you this. Do you think that she's going to change - Michelle Obama has the ability to change the way that people look at issues of work and motherhood and family?

MARTIN: Oh, I absolutely do. But frankly, I think all women who have made this journey do change a little bit, Kiran, including you. You're a mocha mom and you're a working mom, you're doing a great job and I think in your way and every person who's in the public eye who shows that it can be done. They change the way people think about how these things can be done.

CHETRY: All right. Well, hats off to you two, because I know you're twin boys, as well, that run around --

MARTIN: Boy and a girl.

CHETRY: Oh, you have a boy and a girl. Oh, gosh. That's even more crazy for you.

And you have five, Jolene. So, hats off to you.

IVEY: I have five boy, but no twins. Twins is a lot harder.

MARTIN: And Jolene's a public official. For some reason she forgot to mention that. She's a state delegate, married to a state's attorney. So, she's doing her thing.

CHETRY: Well, we absolutely made sure we included that, as well. Thanks to both of you. Great to talk to you, this morning. Thanks.

MARTIN: Thank you.

IVEY: Thank you.