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American Morning

Caroline Kennedy's Senate Seat Quest; Blagojevich Won't Quit; Celebrities Swindled By Bernard Madoff; Bush's Shoe Attacker in Military Custody; Explosives Found in Paris Store; Biden Picked a Puppy

Aired December 16, 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)
KIRAN CHETRY, CNN ANCHOR (voice-over): Caroline Kennedy. Yes, she will.

GOV. DAVID PATERSON (D), NEW YORK: She told me she was interested in the position.

CHETRY: Now the Senate seat and the most powerful name who wants it.

Plus, shoe attack. Background check. New information on the Iraqi who hurled shoes at the leader of the free world on this AMERICAN MORNING.

(END VIDEO CLIP)

CHETRY: And welcome. It's Tuesday, December 16th. I'm Kiran Chetry. Welcome back, John.

JOHN ROBERTS, CNN ANCHOR: Thank you. Yes, we had a long weekend. Got a little bit of Christmas shopping done.

CHETRY: Good for you.

ROBERTS: I saw upstate New York. It was very nice.

CHETRY: Beautiful time of year to do that.

ROBERTS: It was gorgeous. Yes. I made a lot of good friends, too, this time.

We begin this morning with Caroline Kennedy making a run for Hillary Clinton's Senate seat. She's already campaigning hard, calling New York's top Democrats including Governor David Paterson who said she wants to sit down with him at some point to tell him what she thinks her qualifications are. Kennedy has got warm praise from President-elect Barack Obama and New York Mayor Michael Bloomberg, but some Clinton supporters are criticizing her.

The Iraqi reporter who threw his shoes at President Bush is now in military custody. Iraqi government officials say 29-year-old Muntadar (ph) al-Zaidi has been turned over to the prime minister's security guards. After his arrest, thousands of people protested in Baghdad calling for his release. He could face charges of insulting a foreign leader and Iraq's prime minister who was standing next to the president at the time of the shoe throwing.

And formal charges expected today against a New York City police officer seen bio-checking a bicyclist at a popular YouTube video. The officer, Patrick Pogan, was assigned to desk duty after the video emerged last summer showed him shoving Christopher Long off his bicycle in Times Square during a critical mass bicycle ride. An attorney for the officer says he did nothing wrong and claims that Long was driving recklessly.

CHETRY: Well, first, she's the daughter of American icon, the late president John F. Kennedy and Jackie Kennedy. And this morning, we know Caroline has been making calls and telling New York's powerbrokers that she is interested in Hillary Clinton's Senate seat. The man who will decide, New York governor, David Paterson, spoke with Kennedy about her plan. Now he must weigh her qualifications against any other potential candidate.

One thing though in Kennedy's favor, her ability to raise cash and lots of it, something that would pay off when she faces a special election in 2010 and then reelection again in 2012.

CNN's Mary Snow is following the story this morning. A lot of people are saying, well, where is her experience in, you know, public office?

MARY SNOW, CNN CORRESPONDENT: Right. And that is a big question. Set the political world on fire though in New York. You know, she's got star power and name recognition but some Democrats say her challenge now is to prove she has the qualifications.

Caroline Kennedy launched a very public effort to let it be known she is seeking the U.S. Senate seat once held by her late uncle, Robert Kennedy.

(BEGIN VIDEOTAPE)

SNOW (voice-over): Caroline Kennedy is ready to step into the public eye that she's worked to avoid for most of her life. The 51- year-old daughter of the late president, John F. Kennedy, told Democratic officials she's interested in filling the Senate seat now held by Senator Hillary Clinton, assuming her nomination as secretary of state is confirmed. New York Governor David Paterson has the power to appoint a replacement and says he's spoken with Kennedy.

GOV. DAVID PATERSON (D), NEW YORK: She told me she was interested in the position. She realized that it was not a campaign, but she was talking to other people because she thought that a number of people she felt should know that she's interested in the position.

SNOW: Kennedy has largely stayed out of the public eye until this year when she endorsed Barack Obama during the Democratic primaries and even campaigned for him.

CAROLINE KENNEDY, OBAMA SUPPORTER: I have never had a candidate who inspires me the way people tell me my father inspired them. But I do now.

SNOW: Kennedy is an attorney, author and mother of three. She oversees her father's presidential library. And in New York, she's worked to raise money for private partnerships for New York City public schools. The school's chancellor, Joel Klein, supports her. And so does New York Democratic Congresswoman Louise Slaughter, who endorsed Kennedy crediting her skills and intellect. But some Democrats in New York have questioned her qualifications, and New York Democratic Senator Charles Schumer was asked whether he thought she was qualified.

SEN. CHARLES SCHUMER (D), NEW YORK: I think there are 12 candidates whose names have been mentioned. I think every one of them is qualified.

SNOW: One of the candidates whose name has been thrown out, State Attorney General Andrew Cuomo, who was once married to Kennedy's cousin, Kerry. One Democratic strategist says one thing is certain, this will be a hotly contested seat.

HANK SHEINKOPF, POLITICAL CONSULTANT: What you do know is Caroline Kennedy has no public profile, has never served in a legislative office. Frankly, nobody knows much about her. And the Kennedy name? Well, this is not 1960 anymore. This is 2008.

(END VIDEOTAPE)

SNOW: And in 2010, whoever replaces Senator Clinton will face a special election. New York Republican Congressman Peter King is interested, and he tells that Caroline Kennedy's news makes him more determined than ever to run, saying that he feels strongly in his words no one has a hereditary right to a Senate seat -- Kiran.

CHETRY: It's only interesting she wants to replace Hillary Clinton when she -- the first time when she publicly endorsed him when it was Clinton's rival, Barack Obama, in the primary.

SNOW: And there are plenty of Hillary Clinton supporters that are talking about that are not going to forget it because it was such a deep division. But it will be -- there have been also some very public comments that are critical of her among Hillary Clinton supporters.

CHETRY: All right. Well, we're going to see how that all shakes down. Thanks so much, Mary Snow.

And also we want to tell you that we have a guest coming up. She's going to talk a little bit more about the Kennedy family's thoughts on Caroline's decision. In 20 minutes, Kerry Kennedy, Caroline's cousin, will join us. I'm going to ask her if she thinks that Caroline is qualified to be a U.S. senator.

And Fran Drescher, the star of "The Nanny" also making it clear that she's interested in being the next senator from New York. Last night on CNN's "LARRY KING LIVE," Drescher drove home her qualifications saying that her role in television has prepared her for a career in politics.

(BEGIN VIDEO CLIP)

FRAN DRESCHER, ACTRESS: I spoke at Senate hearings and during Black Caucus week I was on the panel and cancer, you know, hearings. And, you know, don't forget, I was a creative and executive producer of "The Nanny." I mean, I have been a successful businesswoman for many years. And I like talking to people and I like dealing with problems and solving problems.

Thank you, secretary.

(END VIDEO CLIP)

CHETRY: Well, in September, Drescher was named a state department public envoy. She also recently toured Eastern Europe to raise awareness about women's health -- John.

ROBERTS: Now to the political scandal surrounding Illinois Governor Rod Blagojevich. His attorney says the governor has no plans to resign because he has done nothing wrong.

Attorney Ed Gensen claims the case against Blagojevich which includes scheming to sell Barack Obama's vacated Senate seat for personal profit has been "significantly exaggerated." But Illinois lawmakers see it differently taking the first steps towards removing Blagojevich from office forming a bipartisan committee to consider impeachment charges.

And President-elect Barack Obama says a review by his own attorney shows that he had no direct contact with Governor Blagojevich, and his transition aides did nothing inappropriate. Obama says that review will not be made public until next week because he doesn't want to "interfere with an ongoing investigation." In fact, he was asked by the attorney in charge, Patrick Fitzgerald, not to release it.

CNN's Brianna Keilar is in Chicago. She's covering the Obama transition.

And, Brianna, a lot of the news coverage of this this morning as Obama transition team clears itself in Blagojevich investigation.

BRIANNA KEILAR, CNN CORRESPONDENT: Yes. And this delay is just another reason, John, why this Blagojevich scandal will continue to be a distracting sideshow for the Obama transition government as it was yesterday. We saw at his news conference when he was announcing his energy and environmental team and he took questions, he just couldn't get away from the topic.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT: There is nothing in the review that was presented to me that in anyway contradicted my earlier statements that this appalling set of circumstances that we've seen arise had nothing to do with my office, and that, you know, those facts will be forthcoming to all of you in due course.

(END VIDEO CLIP)

KEILAR: But Obama said on Thursday that those facts would be coming out within a few days. Obviously a few days has come and gone at this point. Now the U.S. attorney who indicted Blagojevich did confirm, as you pointed out, John, that this delay was at his request. But this still doesn't quell the curiosity. In fact, it kind of just kicks it down the road.

ROBERTS: And you know, there are some people this morning who are asking whether Blagojevich actually did anything wrong. Did he actually take criminal action here? Was it all just talk and how does that fit into the overall realm of American politics particularly politics in Illinois and Chicago?

KEILAR: Well, and you're hearing but at the same time you're hearing from so many people here in Chicago and across the nation, and coming from the transition government they want Blagojevich to step down. Obviously we'll get those facts in due course.

But, John, I just want to let you know a little bit about what we're going to be seeing the president-elect doing today. He's going to be having a meeting with his economic team, but we're also expecting for him to announce at a nearby Chicago school who his pick for secretary of education is. We're expecting that to be Arne Duncan, the head of Chicago public schools.

And we're also hearing from two transition sources that Obama has settled on his pick for secretary of the interior and that's going to be Ken Salazar, a senator from Colorado. We're expecting that a little later in the week.

ROBERTS: All right. Brianna Keilar for us this morning burning the early oil there in Chicago. Good to see you this morning, Brianna. Thanks very much.

And again, don't forget President-elect Barack Obama will hold a news conference at 11:45 this morning to make that announcement. You could see it live here on CNN and CNN.com.

CHETRY: Well, he's been hailed by a hero -- as a hero by many in the Arab world and seen as an embarrassment by others. Now the Iraqi journalist who threw his shoes at President Bush could pay a heavy price for his actions. We're live in Baghdad with developments at nine minutes after the hour.

The $50 billion rip off.

(BEGIN VIDEO CLIP)

BRAD FRIEDMAN, MILBERG LAW FIRM: For most people, this was 100 percent of their liquid assets. They're now wiped out.

(END VIDEO CLIP)

CHETRY: It wasn't just the rich who got swindled by the big investment scheme. The little guys who lost everything.

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

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(BEGIN VIDEO CLIP, "THE TONIGHT SHOW WITH JAY LENO")

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": A man named Bernard Madoff -- that's the guy's name -- the former chairman of Nasdaq, has been arrested and confessed to federal officials that he ran a Ponzi scheme that defrauded investors of $50 billion. The name of the Ponzi scheme? Nasdaq.

(END VIDEO CLIP)

CHETRY: Well, this morning there may be some hope for the big names who lost a lot of money in Bernard Madoff's $50 billion swindle, perhaps the biggest scam ever committed on Wall Street. Yesterday a federal judge issued an order that may allow some of the victims, including some of the most famous names around to recoup some of their money.

CNN's Allan Chernoff is covering the scandal and certainly there's no guarantees here that this money will be recovered.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Yes. Even if they get some money back, it's probably not going to be very much relative to what was put in. The operations right now are being liquidated under the authority of a bankruptcy judge.

Now Bernie Madoff was able to attract billions and billions of dollars because he's a very charming man and he had a stellar reputation. But now, federal authorities are trying to determine whether he acted on his own or had help in duping so many wealthy investors.

(BEGIN VIDEOTAPE)

CHERNOFF (voice-over): Since the arrest of Bernard Madoff, the list of high-profile victims continues to grow. U.S. senator, Frank Lautenberg, Fred Wilpon, owner of the New York Mets, and Mort Zuckerman, owner of U.S. News & World Report, had a charitable trust invested with Madoff. Some victims had entrusted their life savings.

BRAD FRIEDMAN, MILBERG LAW FIRM: For most people, this was 100 percent of their liquid assets. They're now wiped out. Penniless. They need money to live on. They're having to put their homes on the market in this depressed economy where you can't even sell a home.

CHERNOFF: In Palm Beach, some panicked victims are now looking to unload homes at the exclusive Breakers Resort. Foundations organized by Steven Spielberg and Elie Wiesel reportedly were invested in Madoff. And across the globe, major investment houses have announced losses including Spain's Banco Santander, Japan's Nomura Holdings, and The Royal Bank of Scotland. Madoff's offices in London and New York are shuttered as the Justice Department and SEC investigators pour through company records, trying to determine who, if anyone, was helping him Bernard Madoff execute his fraud.

LINDA THOMSEN, SEC: We are acutely focused with our colleagues in the southern district of New York and the FBI to figure out exactly what's going on, to pursue the case that we've got, to preserve assets to the extent we're able and to bring everyone who is responsible for the conduct at the Madoff firm to justice.

(END VIDEOTAPE)

CHERNOFF: The SEC concluded an investigation only last year and found nothing at the Madoff firm. One person close to that investigation said that perhaps Madoff had his investment operations entirely off the books which would have made it difficult for the SEC to uncover anything. Now Mr. Madoff did confess to a federal investigator. Nonetheless, one of his attorneys did say that Mr. Madoff intends to fight to get through this unfortunate set of events -- Kiran.

CHETRY: Any word on why he would risk it? I mean, you talk about a stellar reputation. He had so many people that trusted him and it seemed that he had a viable business. Why would he risk it?

CHERNOFF: There's absolutely no reason for him to risk it. I mean this could be the subject of a book. It probably will be.

Mr. Madoff is incredibly successful. Had a great trading firm, one of the top Nasdaq trading firms out there. And perhaps he just got addicted to the idea of being able to deliver spectacular results year in year out.

And another noteworthy thing here, apparently he wasn't charging a fee to his investors. He was saying, well, the commissions that we make from the trades are enough. That just didn't make any sense.

CHETRY: Wow. All right. Much more to this as we find out new details.

Thanks so much, Allan.

ROBERTS: Well, after hurling his shoes at President Bush, an Iraqi journalist is being hailed as a hero by some who say it was a fitting sendoff for an unpopular U.S. president. We'll live in Baghdad with the latest for you this morning.

And if you lose your job, what should you do immediately after you get the bad news? Gerri Willis has some answers in her layoff survival guide coming up.

Sixteen and a half minutes now after the hour.

(COMMERCIAL BREAK) ROBERTS: President Bush says he saw the man's sole (ph). Iraqi government officials say the journalist who threw his shoes at the president is now in the custody of Iraq's military command. We're learning more now about why he did it. And now he's become something of a folk hero in Iraq and other parts of the Muslim world as a result.

CNN's Michael Ware is live in Baghdad for us this morning. What do we know about this young man's story, Michael?

MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT: Yes. Good day, John.

(INAUDIBLE) 28-year-old Shia who works with this Iraqi network that runs of Cairo in Egypt. Now, he's been living and working in Sadr City, the sprawling slum of more than two million Shia, mostly loyal to rebel anti-American cleric Muqtada al-Sadr.

Now we know that last year he was kidnapped for three days by insurgents from militia. This year he was detained for a day by U.S. forces but then released. And we know that he's been covering in the words of his family, lots of stories about orphans and widows and generally the carnage from this war. And they say it's deeply affected him.

Now we do know that in a few of his reports, he signed off with his name and the location of occupied Iraq. So this guy obviously become pretty disenchanted. That, unfortunately, is not uncommon here in Iraq -- John.

ROBERTS: What's the reaction been to him there on the ground in Baghdad, Michael? And also, we have been hearing some reports coming from his brother and others that he may have been beaten while in Iraqi custody and it did seem when he was taken down there during the press conference that the Iraqi authorities were pretty harsh with him.

WARE: Yes. Surprise, surprise. Iraqi police, you know, giving someone a touch up. That would be a first.

He actually -- if they don't give you a flogging that's the grounds for complaint on here. But, you know, what happened in the press conference was, you know, I would imagine perfectly legitimate. What's happened after we don't know.

A Sadr (ph) politician and his brother claimed that he's got a broken arm or a few other injuries. We don't know until he's handed over to the court system.

Now in terms of reaction, obviously, he's become a folk hero across the Middle East with outpourings of support. And just here today and it's only just past lunchtime, we've had demonstration by high school students in Fallujah calling for his release, supporting him.

More high school students in northern Baghdad demonstrating for him. Journalism students at Baghdad University protesting for him. Students at Diyala University protesting for him. People are texting each other on their phones like crazy with jokes and tons of words of support for him. And he's even got a Facebook fan site, where hundreds are already signing up, John. In fact, so he's become a rock star in some ways.

ROBERTS: Yes. The Maliki government officially not very happy with him, though. We'll see -- we'll see how this goes and continue watching. Fascinating story.

Michael Ware for us this morning from Baghdad. Michael, thanks so much.

And this morning, by the way, some people are suggesting the president's security detail was to slow in responding to the stunt. This morning in an "AM Extra," if you look closely at the video, it takes about six seconds for the first agent to get to the president's side. Not too long, but well after both shoes were thrown at the president. The Secret Service says it is reviewing the response.

Meantime, safety experts say there are so many security checks outside the room that you would never expect a threat inside. They say it would be like a credentialed reporter going on the attack inside the White House briefing room. And, Kiran, while there are plenty of metal detectors to make sure that weapons don't get in, everybody I've ever seen walk in through the White House does it in a pair of shoes.

CHETRY: Exactly. What are you going to do? Make him take him off and check in at the door?

Well, the first daughter of Camelot, Caroline Kennedy this morning, actively seeking Hillary Clinton's Senate seat. But is she qualified to become New York's next junior senator? We're going to ask her cousin, Kerry Kennedy. She joins us live in just a moment.

Also this morning, former students of a reform school now the center of an investigation divulging the school's deep dark secrets.

It's 23 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: At 26 minutes after the hour, we're following breaking news out of Paris this morning where Parisian police say they have diffused explosives found in a giant department store there. It is the Printemps store which means springtime in French. It's the largest department store, according to Printemps, in the world.

According to the "Associated Press," the store was evacuated after the discovery. A group calling itself the Afghan Revolutionary Front reportedly warned it placed "several bombs in the store."

We're getting some information and it's sketchy right now. Our Paula Newton is working the story. That as many as five packages containing explosives may have been planted in that store. Again, it's the Printemps department store in Paris. Again, according to Printemps, on its Web site, it claims to be the largest department store in the world.

We're working this story for you fast and furious. We'll bring you the latest details on it just as soon as we get it. As far as we know, no one hurt this morning -- Kiran.

CHETRY: John, thanks.

Well, this morning, the decades long tradition of having a Kennedy in the Senate may continue. Right now, Caroline Kennedy is campaigning hard for Hillary Clinton's seat. She has the famous last name, but what about the qualifications for the job?

I'm joined now by Caroline Kennedy's cousin, Kerry Kennedy, the author of "Being Catholic Now." Thanks for joining us this morning.

You know, your cousin, Caroline, has always sort of avoided publicity staying out of the limelight. Why does she want this Senate seat?

KERRY KENNEDY, COUSIN OF CAROLINE KENNEDY: You know, I think that Caroline, this is an incredibly important moment in our history. And for all the issues that are important to Caroline, number one, she has raised $70 million, over $70 million for New York public schools.

The headlines yesterday in the "New York Times" were that because of the financial crisis the funds are being cut to public schools. So we need her voice in the Senate. She wrote a wonderful book about the bill of rights and privacy issues, and the Bush administration has decimated the privacy issues within the bill of rights. So we need a voice in the Senate on that issue, too.

And then third, there are very few women in the Senate and very few mothers. And we really need someone with that experience and I think Caroline will be great.

CHETRY: One of the questions that I think people have is why now? I mean she's -- you know, is it because this was an appointment she doesn't have to run a traditional, you know, political campaign? She would basically be appointed to the seat by the governor.

KENNEDY: She would be appointed but then, of course, she'd have to run twice in a row and two years from now and two years after that. So, essentially, to be viable she'd have to start campaigning immediately.

I think that it's really the issues. She was incredibly inspired by Barack Obama, and she cares deeply about the public school system and about the issues that are facing us as Americans today.

CHETRY: You know you bring up a good point about the funds raised. Can you do more as a private citizen in terms of fundraising and being able to help out schools than you could as a senator and elected politician? KENNEDY: Well, of course. As a senator, you have control of the education budget for the country, which is important, and privacy issues, of course, as well. And you know, Caroline has been the head of the JFK Library Association. So she's met with heads of state every three weeks for the last decade or so. And I think that that also adds to an important understanding of foreign policy.

CHETRY: She's, of course, as soon as her name has been mentioned there's been a little bit of pushback as well. People questioning her qualifications.

One of the writers, Elizabeth Wurtzel, contributor to "The Daily Beast" wrote that she's seeking Hillary Clinton's Senate seat but has mostly spend her life as a mother, a wife, and ceremoniously a daughter. That doesn't make her qualified. Are we not at long last tired of turning the reins of government over to underqualified offspring of former presidents? Do you think it's an unfair criticism?

KENNEDY: I think that's somebody who just is not familiar with Caroline's likes (ph) and work. She's a lawyer. She is a best selling author. She's worked hard on public service issues. And she, I think one thing that's interesting about Caroline is that she is not interested in fame or fortune or power. She's really interested in public service and that's what she's done throughout her entire life.

CHETRY: You also wrote a book, "Being Catholic Now" and in this you interview a bunch of high-profile Catholics about the influence that their faith has had on their life. What do you -- how do you think it's influenced your cousin, Caroline.

KENNEDY: Well, I think, you know, all of us in our family have had the potential knowledge of having a loving God and that has helped us through good times and bad times, and I imagine it's helping Caroline now, too. But this is a book that makes a great Christmas present. It's -- interviews with people from Bill Maher and Bill O'Reilly to Nancy Pelosi about what it means to be a Catholic.

CHETRY: It is fascinating, Bill Maher, because, of course, he has his documentary "Religulous" out, which questions religion in humorous ways, but also he says, "I'm an atheist."

KENNEDY: Yes, he does. But it's kind of interesting because if you cut through all of this criticism of Catholicism and of organized religion, his essential message is we ought to be nice to each other and we shouldn't be nice to each other because we'll be rewarded with heaven or because we're afraid of hell, but just because it's the right thing to do. And that is the essential message of Catholicism and of Christianity, love one another.

CHETRY: Well, the book is called "Being Catholic Now," and Kerry Kennedy, we thank you for joining us this morning. Great to talk to you.

KENNEDY: Thank you.

CHETRY: John?

JOHN ROBERTS, CNN ANCHOR: New details just in for you on reports of explosives found in a Paris department store. Media reports say there were five dynamite sticks that were located in a restroom in a Printemps Department Store, an extraordinarily large department store, the most famous one in all of France and claims to be the largest one in the world.

But in this package of five -- in this package of five dynamite sticks, apparently there was no detonator connected to them. That's according to the Associated Press. The store was evacuated, of course, after the discovery. A group calling itself the Afghan Revolutionary Front reportedly warned that it placed "bombs," quote, or "several bombs" in the store.

Our Paula Newton has been working on the story. She's in the London bureau this morning.

This would seem, Paula, to be -- as opposed to a real threat, a real demonstration of a potential threat or the possibility that terrorists could easily target these department stores. And we've been talking with terrorism experts since 9/11 about where the next attack may come from, and they keep pointing us toward these soft targets like department stores.

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Absolutely. And any one of us can imagine how easy this would be. What is interesting here is in the terms of the kind of disruption these people allegedly intended to cause. They are calling themselves the Afghan Revolutionary Front. They are using tactics that we're more used to here, John, with the IRA. They sent a warning, it seems.

And this is what's unclear. Police say they have to really look at these so-called explosives. Were they dummy explosives? They didn't seem to have any kind of detonator switch attached to them. In some cases, someone might want to call it a hoax.

But it is incredibly real for those people in that department store. The entire department store had to be evacuated. Demining teams are all over the department store right now, trying to figure out if there are other explosive devices in the building. They say this is a departure in tactics for the kind of terrorist threat that we have seen here in Europe, John, and as you say, especially during the holiday season, very worrying.

ROBERTS: Paula, this group that is claiming to have put this explosive device, whether it be a hoax device, whether it be an inoperative explosive device or whether it actually be an operative explosive device, calling itself the Afghan Revolutionary Front. Do we know anything about this group?

NEWTON: Not so far. Certainly, I have not heard of them before. They have had certain warnings in France regarding operation of the Taliban. Certain people sympathetic to the Taliban and the kind of chaos they would like to cause for any of the NATO members that are contributing whatsoever to the cause in Afghanistan. And, of course, John, you remember the tension right now and a lot of European countries about having their troops in Afghanistan. The Taliban believes that the more they can destabilize those countries and convince them that it's just not safe for them to have those troops there, the more they can put public pressure on those European countries to withdraw forces at a time when President-elect Barack Obama is going to be pressuring those countries to send more troops in. It is all part and parcel, really, of that kind of a campaign.

ROBERTS: Yes, just to sort of recheck ourselves here. It's the Printemps Department Store. I said it was the largest department store in the world. Sorry, it's a largest beauty department in the world. There are larger, in fact, department stores in France. Galeries Lafayette being one of the chains.

But the question many people may be asking is why was this particular store targeted? Does anybody have any idea?

NEWTON: I don't think so right now. I mean police are dealing with the situation of this being really an iconic building. It would have been packed with shoppers. It was mid-morning in Paris when a lot of the people in Paris would be getting a lot of their Christmas shopping done. And that's pretty much the reason right now the police are looking at. As I said it would have been a place that people would have gravitated towards.

There's a kind of a large, you know, Green Square in front of it. It is not well fortified in terms of security. There are several entrances. I've been up and down of it before. The restrooms, a lot of them, tucked way in the back, not necessarily, I would assume, with CCTV in terms of anyone knowing who had actually planted these devices. I don't know that for certain. But certainly it just looks like a regular department store any time that I've been in it.

But again, this is the kind of mass panic that will then start to take over a city. We saw this for years here during the IRA. This is what they would do. They would plant sometimes very viable devices, but at the same time they would send out a warning. And with that warning would come the panic. And police would be called. You know, people would have to leave the location.

It really is a destabilizing effect. And it is having certainly that kind of anxiety-filled reaction for shoppers right now and Parisians in general.

ROBERTS: All right. Paula Newton for us in London this morning. We'll let you to get back to work on your story. We'll check back in with you in just a little while. Thanks.

CHETRY: And still ahead, few things scarier than losing your job. But if it happens to you, will you know what to do immediately before leaving the building. Gerri Willis has a checklist in her special series "Layoff: A Survival Guide."

Plus, the case against big tobacco goes all the way to the Supreme Court. Now, a 5-4 decision opens the door for a slew of lawsuits against cigarette makers. We'll take a look at 36 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." You know, it's a disturbing sign of the times. More Americans are getting laid off. Personal finance editor Gerri Willis has some advice to help you survive a layoff in her special series. Today, she has a checklist for surviving the day of the layoff. And Gerri joins us now.

Thanks for being with us. Unfortunately, we have to talk about this, but this is the worst job market in a generation, and so times are tough and more and more people are going to be facing this.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: More and more people are facing this, but few of us remember how it works. If you're in a big company facing a mass layoff, look at the attorneys who drive how this works. They're trying to protect the company from getting lawsuits.

So, here's how it will come down. Your manager will call you in to his office. He'll explain. Maybe you're going to get some kind of a severance pay with the terms of your layoff are and then they're going to shuttle you out of there pretty quickly.

Your job is to get what you need before you go. Get a referral. Ask your manager for a referral. There's no better time. It's close to the holidays. There's no manager who's going to turn you down for that.

Also, figure out, what does the company owe you, particularly, if you work on commission. Think about this. You don't have to call from your kitchen next week after you don't have a job. You want to find out right now. Go to HR. Go to the payroll department. Get some kind of notification about what the company owes you.

And, of course, we talked a little bit about this yesterday. You definitely want to take your stuff, but once you're in a layoff situation, you'll only be limited to taking out your personal effects, pictures, stuff like that. You might be able to get out your Rolodex -- not clear. But certainly, you're not going to be able to take PDAs, laptops, forget about it.

CHETRY: Right. And when you talked about, you know, mass layoffs in big companies. What if you work at a small company and you go to work one day and the doors are locked? The company is just shuttered.

WILLIS: You know, it happens. You know, sometimes companies just disappear overnight. There is a federal law called the WARN Act, which requires that companies give 60 days' notice to people who they're going to lay off. If you have a dispute, if you find that your company is out of business and it's a surprise to you and they owe you money, there's a phone number that you can call, 1-866-4- USWAGE. The Department of Labor will come in and negotiate this for you on your behalf and charge you nothing at all.

And of course, one other thing you're obviously going to want to do on that day, the day you're laid off, you can file for unemployment. You know why? It takes two to three weeks to get benefits. It can take a long time to get through on the phone to these folks to get those benefits rolling. You want that to happen as soon as possible.

And just an interesting note, you know, we have a story this week that some of these states are having a hard time paying unemployment benefits. They're definitely going to borrow this money from the federal government. People should not be worried about not having these benefits, but the problem is, really, technical here. Some folks are having a hard time getting through on the telephone to get that help.

One thing you want to know, look, this isn't going to be money that's going to save you forever and ever. It's like a third of your salary at best that your unemployment benefits are going to cover.

Let me give you a Web site here to go to, to find out how to apply for benefits in your state. Workforcesecurity.doleta.gov/unemploy. And we can put that up on a Web site, too, so that folks can see that.

CHETRY: Yes, it's up there now as well. So -- yes, a lot of good stuff. Speaking of a Web site, Gerri -- she's going to be blogging throughout the show, so you can send some questions that you may have about the situation to her. CNN.com/am. And Gerri will be up online in just a moment.

Thanks so much, Gerri.

WILLIS: My pleasure.

CHETRY: Also tomorrow it's the third part of Gerri's series. What happens to your benefits when you're laid off? Gerri's going to tell us how to make sure you protect them.

ROBERTS: Well, move over Barney and Miss Beasley. There is a new pup in the presidential circle and this one does not belong to the Obamas. Oh, what a cutie. 43 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Well, while we (INAUDIBLE).

CHETRY: I feel the same way.

ROBERTS: Everyday I feel like this. While were on first puppy watch, the Bidens (INAUDIBLE), and got a pooch of their own. Joe Biden's wife Jill reportedly promised him a puppy if he stuck it out through the election. So what kind of dog did the vice president- elect get? CNN's Alina Cho here with all the details this morning.

ALINA CHO, CNN CORRESPONDENT: Man takes two days off and boy, motor skills are gone.

ROBERTS: Dog is more articulate than me this one.

CHO: That's not true. Hey, good morning guys. Good morning everybody. You know, second on the ticket, first in the dog race. Good morning everybody. You can't deny it. It is very big news. Not the big pick everybody has been waiting for. But yes, the vice president-elect has picked a puppy.

Take a look. It's a 3-month-old male German Shepherd. Now, the Bidens apparently picked him up at a breeder's kennel in Pennsylvania last week. He's reportedly headed off for six weeks of training before settling into his new home. That's a good idea.

The dog has been called, quote, "pick of the litter" and "happy- go-lucky," but no exact name just yet, and we haven't heard from Biden on the new addition. But back on Election Day, the then VP candidate talked about the deal he cut with his wife to get him.

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT-ELECT: Jill said, look, the only way we'll get a dog is when you're president. We didn't think about vice president. So, when Barack was inquiring about would I be -- would I be willing to get vetted. Jill said I'll make you a deal. She said take the vice presidency and get elected, you'll get a dog.

(END VIDEO CLIP)

CHO: Not a bad deal. You know, this will be the Bidens' fourth German shepherd. As for the name, as I just said, no name picked out just yet. And Biden says he's going to let his grandchildren do the honors. They get to pick the name next year.

Now, as for the other power pup everybody has been waiting for, no word from the Obamas on the next first pet, but we are hearing from you. Yes, we have actually commissioned a poll on this.

According to a CNN Opinion Research Corporation Poll, you know, it is post-election and we need to do this kind of stuff, most people would like to see a Labrador retriever in the White House. 13 percent, guys. Take a look at the screen there. Some good support for a mutt as well, tied with poodle at 9 percent. Terrier's next with 7 percent. Then golden retriever and German shepherd down at the bottom of the list.

But a lot of you, 45 percent of you, you don't see that on the screen, but 45 percent chose other unspecified breeds. So a lot of indecision out there, just like they're what in the election.

CHETRY: But it's all moot. They can't pick a Labrador because of the allergies of the driver.

CHO: That's right. You know...

(CROSSTALK) CHETRY: They should pick a hypoallergenic dog.

CHO: Obama came out just after the election. He was asked about the dog, he said, you know, I'd like to get a shelter dog. We all would like to get a shelter dog because -- but a lot of them are mutts like me, and Malia is allergic. They needed a hypoallergenic dog. So, we'll have to wait and see. But you can bet I'll be watching it very closely for you guys.

ROBERTS: Pretty extraordinary that we conduct polling on this sort of stuff.

CHO: I was stunned by it, but yes, we did.

(CROSSTALK)

CHETRY: Also, did you see the paws on that German shepherd. That's going to be an enormous dog. I mean, his paws are bigger than his face.

CHO: Bidens are used to it, apparently. They like German shepherds. It's their fourth. Anyway...

ROBERTS: All right. Thanks very much, Alina. We'll keep watching for the presidential pup. Next one to be announced.

Explosives found in a Paris department store. We're following the breaking news this morning. It's 49 minutes after the hour. We'll have that for you, coming right up.

The lame duck "duck."

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Dodging and weaving? I mean, he has done that through his whole administration. But we never actually seen it filmed.

(END VIDEO CLIP)

ROBERTS: Now, the real fun begins. Jeanne Moos on how the internet is getting a huge kick out of the president's shoe attack. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: All right. Just one more look at the new pup that's going to be living with the Biden, the new vice president-elect and his wife. One of the pictures was cut, courtesy of Tom Kelly of the Daily Local News. And then the other pic was courtesy of Linda Brown, the breeder of that adorable yet to be named Golden Retriever.

And like I said, John, with paws like that -- that is going to be one big dog.

ROBERTS: Big, big dog. CHETRY: What a cutie.

ROBERTS: German Shepherds are terrific dogs. Welcome back to the "Most News in the Morning." We'll talk about shock and awe. President Bush dodging a pair of shoes thrown by an angry Iraqi journalist. Everyone, and I mean everyone is talking about it. CNN Jeanne Moos is gauging the size 10 reaction to it.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): The weapons of mass destruction finally surfaced, and we in the press couldn't get enough.

HEIDI COLLINS, CNN ANCHOR: Nearly Bush whacked in Baghdad.

MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT: Talk about reinventing duck and cover.

MOOS: Duck was all over the covers of newspapers. There were good puns.

UNIDENTIFIED MALE: Shoe-icide attack.

MOOS: Ones we had to struggle to get turns out shoe-nibomber is a play off the Unabomber. At Dino's Shoe Repair, President Bush's image got polished.

UNIDENTIFIED MALE: I thought he was deft and he was very agile.

UNIDENTIFIED MALE: He was very graceful. I don't know (INAUDIBLE).

UNIDENTIFIED BOY: Oh yes, that was a very good dodge, all right.

UNIDENTIFIED FEMALE: Damaging and weaving? I mean, he has done that to his whole administration. But we've never actually seen it, filmed.

MOOS: Critics loved seeing it.

UNIDENTIFIED FEMALE: I would have liked to have done it myself.

UNIDENTIFIED MALE: I think he threw one for the world.

UNIDENTIFIED FEMALE: He deserves it.

MOOS: Good thing it wasn't a female shoe-icide bomber.

(on camera): This would be a perfect shoe to throw at someone. The first movie clip everyone thought of -- was Austin powers.

UNIDENTIFIED MALE: Who throws this shoe?

MOOS (voice-over): Next thing you know on YouTube. Austin Powers-George Bush hybrids bloomed. UNIDENTIFIED MALE: Who throws this shoe, honestly? You fight like a woman.

MOOS: Instead of shoes, Saddam Hussein's head was thrown. The Three Stooges were edited into the act. In no time at all, there was a Bush shoe target purse. And even the official George W. Bush shoe throw game, try to hit the president with a shoe.

Would you dare toss these shoes?

UNIDENTIFIED FEMALE: They are expensive. I wouldn't throw them.

MOOS (on camera): And now the secret service doesn't like their reaction.

UNIDENTIFIED MALE: They were having cigarettes and coke.

UNIDENTIFIED FEMALE: How do you let someone throw two shoes at the president?

MOOS: As for where the now famous shoes should end up?

UNIDENTIFIED MALE: I think they should be impeached along with Bush.

UNIDENTIFIED FEMALE: They probably need to go (INAUDIBLE) or something.

UNIDENTIFIED FEMALE: You know how you can like bronze baby shoes?

MOOS: Yes?

UNIDENTIFIED FEMALE: (INAUDIBLE)

UNIDENTIFIED FEMALE: I think they should auction them off to raise money for the car industry.

MOOS (voice-over): Actually, they are being held as evidence. It could have been worse if the Iraqi had done with this minor league manager did. Man not shake his shoe, but say you stink with an armpit offensive. Jeanne Moos, CNN, New York.

CHETRY: Senator Kennedy? This time, Caroline?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: She doesn't care about fame. She doesn't care about money.

(END VIDEO CLIP)

CHETRY: But what's really in a name?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is not 1960 any more. This is 2008.

(END VIDEO CLIP)

CHETRY: Plus, cocoon around Obama. Your first look at the unprecedented inauguration security.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So there are too many people, you have to turn these off?

(END VIDEO CLIP)

CHETRY: Presidential protection plan. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: It's now three minutes to the top of the hour. Impeachment proceedings in the Illinois legislature are beginning against Illinois Governor Rod Blagojevich in the wake of him being charged in terms of this idea of selling a Senate seat. The Senate seat being vacated by Senator Barack Obama, who is now the president- elect. But did Blagojevich really do anything wrong, and should he face criminal charges? Our legal analyst Jeffrey Toobin is here with us this morning.

There are a lot of people who are ruminating about this today, Jeffrey. And they're asking the question, well, is talking about it equal to a crime. And in the world of politics, there are plenty of people who get favors for doing political things.

JEFFREY TOOBIN, CNN POLITICAL ANALYST: Think about the term we always use for politics, horse trading. You give and you get. You say, look, if you support me, I will support you. Campaign contributions.

When people go to a politician, they say I am giving you $1,000 because I think you'll keep taxes low. Or I think you will support Israel. And he says you bet I'll keep taxes low. You bet I'll support Israel.

How is that different from I want campaign contributions in return for an appointment to the U.S. Senate? Now, I think there probably is a difference, but there is room for a defense in a criminal case, probably, in that conversation.

ROBERTS: Yes. The prosecutor, Patrick Fitzgerald, said that he acted quickly on this to prevent crimes from happening because he was afraid that Governor Blagojevich was actually going to commit crimes. But is there any evidence that he was doing anything any more than talking about it, and is talking about something a crime or do you have actually have to solicit something from somebody and receive it?

TOOBIN: Well, talking about something can often be a crime. There are all sorts of crimes that are just words, whether it's extortion or fraud. But Fitzgerald had a hard decision to make, because -- think about it.

He alleges that he was selling the Senate seat, that this was not an ordinary campaign transaction. This was an outright sale of the Senate seat. If he's the governor, he could sell that Senate seat this week. He could continue to do what is alleged to be doing on a day-to-day basis. So, Fitzgerald felt, look, I have to bring this case down now even if I don't have all the evidence I need, because I have to stop the crime from taking place right away.

ROBERTS: Might he have pulled the trigger too soon? And what about all this action that's taking place in the legislature?

TOOBIN: You know, I think we have to see how this plays out to decide whether he pulled the trigger too soon. You my inclination is he probably did the right thing. Given that, he could have, particularly the appointment to the Senate seat. That could have happened at any day. And, you know, if you really believe it's a criminal enterprise as Fitzgerald does, you had to take some step to make that not happen.

ROBERTS: Well, we'll see what the next shoe to drop will be in this fascinating case.

TOOBIN: You know, there are -- you also have the Illinois Supreme Court proceeding going, where they might temporarily remove him as governor. There are a lot of moving parts at this one.

ROBERTS: But he's insistent that he's not going to resign saying I did nothing wrong. We'll see.

TOOBIN: It's a good story.

ROBERTS: Jeff, good to see you this morning. Thanks.