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American Morning
Senate Faces Showdown over Vacant Seat; Federal Commission Seeks Gas Tax Increase; Carnival Cruise Ship Employee Falls Overboard; Israel Rejects Ceasefire; Muslim Family Kicked Off Domestic Flight; Shareholders Petition Companies to Eliminate Gross-Up Taxes; Dr. Sanjay Gupta Outlines Ways to Live Longer; Reporter Ends Layoff Series with Story of Her Own Layoff; Obamas Prepare for Big Move to Washington; Snowmobiler Caught in Life or Death Decision; Bill Clinton Discussed As Senate Seat Warmer; Remembering the Bush Years
Aired January 02, 2009 - 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: A few minutes before the top of the hour. A look at the top stories this morning.
The Obamas are back on the mainland after spending the holidays in Hawaii. The future First Family arrived back in Chicago early this morning to frigid temperatures, quite a jolt after 12 days in Honolulu. The Obamas are expected in Washington on Sunday so the daughters, Sasha and Malia, can start their new school. They'll be attending Sidwell Friends.
Well, two people are dead after a fiery plane crash at a regional airport about 45 miles southwest of Chicago, that's according to the FAA. The agency is planning to investigate what went wrong. Local officials say that the skies were actually clear at the time that the plane went down.
Aspen, Colorado, held its New Year's Party a day late after a bomb threat forced a huge part of downtown to completely empty. Police say that local resident James Blanning delivered threatening notes demanding $60,000, left four bombs made of gasoline and cell phone parts across the resort town on New Year's Eve, and then was later found dead in his car after he shot and killed himself.
Well, neither Israel nor Hamas backing down this morning as the blistering attacks rage on there. This new video from Israel's military showing an air strike leveling a Gaza mosque. Israel says that militants were using the mosque to store weapons.
An Israeli warplane also dropped a 2,000-pound bomb on the home of a top Hamas leader, Nizar Riyan, leveling the four-story building. TV there is showing that Riyan's body was pulled from the rubble. Israel "Haaretz" newspaper said that Hamas militants are continuing attacks with rockets falling throughout the morning and early afternoon.
And our Paula Hancocks is watching things unfold on the ground.
There's some more speculation as well, Paula, that Israel could launch its ground offensive, that they are amassing at the border, and the troops are ready to go in, just waiting word. What can you tell us?
PAULA HANCOCKS, CNN CORRESPONDENT: That's right, Kiran. Yes, we look on the horizon and we can see tanks, APCs, bulldozers all lined up, all facing in the direction of Gaza. And the soldiers are there. They're just waiting for the order.
And another thing that happened today was about 280 foreign nationals were allowed out of Gaza by Israel. The crossings have been closed for sometime, so could that be another indication that a ground operation could well be on the way?
One interesting thing to note though, the reason we are on this side of the border in Israel and not in Gaza is because the Israeli government will not allow us into Gaza. Even though today they did open the crossing to allow people out, they're still not allowing us in. And one of the reasons they had used is because they didn't want to risk their border guards by opening those crossings.
So, again, censorship by Israel. They're not allowing the international monitors inside. But certainly, the death toll is rising. At least 420 most of them Hamas militants and, of course, that top Hamas militant as well.
CHETRY: And what has been the reaction and the impact of the killing of that Hamas leader?
HANCOCKS: Well, certainly things have been on very high alert, even higher alert today in Jerusalem at the al-Aqsa Mosque. Only people over the age of 50 were allowed to go in and pray because they were -- there were serious worries there's going to be violence (ph) in the center of Jerusalem itself.
The whole of the West Bank is closed off now until Saturday midnight and that's so that Israel says no suicide bombers can get through into Israel proper. And so certainly they are very nervous knowing that they clearly said look, this is personal. We're going after the big military leaders, and, of course, Rayan was one of the very few who actually was still out and about in Gaza.
Most of those leaders are underground and some of them are trying to get out of Gaza as well. And according to Shin Bet, the intelligence agency, we're hearing that some of them are dressing up as doctors and staying in hospitals, desperately trying to avoid those air strikes.
CHETRY: Wow. All right. Paula Hancocks for us with the updates this morning. Thank you.
And one of our own found out exactly what it's like to be under fire in Israel. Take a look at this.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: The siren has just gone off. Everyone is getting out of their cars, getting down in the road waiting to see what happens. That was the explosion. We just heard one explosion going off. I think it came from that direction over there.
(INAUDIBLE) all clear itself and every car seems to be moving again. Everyone that stopped here is getting going. People are coming out of the buildings, trying to cross the road. So that's sort of an indication that whatever was going to come has come.
That's a strange feeling when the sirens go off. I was in the middle of a telephone call. As soon as you hear the siren, stop the car, get out, lie down. Everything around you just suddenly stops in those few seconds.
(END VIDEOTAPE)
CHETRY: And again, that was our Nic Robertson forced to take cover several times because of the fear of incoming rockets reporting from Israel -- Joe.
JOE JOHNS, CNN CO-HOST: To the Most Politics in the Morning now. Barack Obama received a chilly reception early this morning. It's freezing in his native Chicago especially after spending the holidays in sunny Hawaii.
These are pictures of him returning just a few hours ago. The president-elect and his family are preparing to fly to Washington, D.C. where they'll begin a much different life at America's most famous house.
That's what we will find CNN's Jim Acosta. He joins us live now from Washington, D.C.
Jim, good morning.
JIM ACOSTA, CNN CORRESPONDENT: Good morning, Joe. It is a sign of how quickly Barack Obama wants to get started. He's not even president yet, but yet he's going to be collaborating with congressional leaders on Monday to plan for a huge stimulus package to jumpstart the economy. But before he can deliver change, he has to change his address.
(BEGIN VIDEOTAPE)
ACOSTA (voice-over): Their vacation may be over, but the Obama family has its sights set on the trip of a lifetime. America's next first family lands in Washington this weekend. Their first digs, the city's historic Hay-Adams Hotel. No stranger to presidents, this 80- year-old landmark according to local legend, also happens to be haunted by a ghost from the 19th century.
The traditional residence of presidents in waiting, the Blair House won't be available until the 15th. No worries, the Hay-Adams is just steps from the White House.
MAYOR ADRIAN FENTY (D), DISTRICT OF COLUMBIA: It is exciting.
ACOSTA: D.C. Mayor Adrian Fenty says the Obamas' return to Washington will usher in a new era on the nation's capital.
FENTY: He's shown a concern for Washington, D.C. I think it goes above the average federal politician that you may see who just drives through the streets but ignores city issues. He's going to care.
ACOSTA: The Obamas are moving in early because daughters Sasha and Malia start school next week at the elite private institution, Sidwell Friends. A ride to class this town hasn't seen since the Clintons.
REP. ELEANOR HOLMES NORTON (D), DISTRICT OF COLUMBIA: But when he comes this weekend, we're going to say he is here. We're going to say he's here.
ACOSTA: D.C. congressional delegate, Eleanor Holmes Norton, says Mr. Obama could make history in the district by signing into law a bill he co-sponsored in the Senate, a measure giving D.C.'s delegate full voting rights in the House, something city leaders have long sought.
NORTON: We think the stars are aligned now for the D.C. voting rights act.
ACOSTA: And for years we have known the District of Columbia has the place with a license plate that says taxation without representation. Does this mean you'll get rid of the license plate?
NORTON: Yes. He may even use that license plate as he goes down Pennsylvania Avenue. We don't know for sure.
ACOSTA: Perhaps they can make a pit stop at D.C.'s gastronomic hotspot, Ben's Chili Bowl, which has the welcome mat out saying the Obamas can eat for free.
(END VIDEOTAPE)
ACOSTA (on camera): Now as for why the Obamas cannot move into the Blair House early, the White House says it has a previously scheduled slate of guests staying there. Here's a statement from the White House. A spokeswoman there, Sally McDonough, saying, "It's not a public schedule. It's not a question of outranking the Obamas. The Blair House will be available to them on January 15."
So, Joe, the welcome mat will be out for the Obamas at the Blair House then. And until then, not a bad place to stay. The Hay-Adams isn't bad digs.
JOHNS: But it's true, isn't it? I guess it's not exactly public information who stays at the Blair House, huh?
ACOSTA: That's right. And this is part of White House protocol. We don't always know who's coming and going at the White House. A lot of times these are private guests of the first family, and they also have events that are scheduled there that are also sort of private affairs that are being hosted by the first family. So, yes, this is not out of the ordinary. But the Obamas, as we know, have children who are going to school on Monday, and they had asked to get in there early. It just wasn't possible. The schedules didn't work out in the end there, Joe.
JOHNS: Good enough. OK, thanks so much. Jim Acosta in Washington.
CHETRY: He was one of 11 men who went up a mountain and just -- one of just three who came down alive. This morning we're hearing from the man who survived a series of avalanches in western Canada and killed his lifelong friends when they were on a snowmobiling trip. The emotional pain visible on his face as he talked about a gut- wrenching decision he had to make up there.
(BEGIN VIDEO CLIP)
JEFF ADAMS, AVALANCHE SURVIVOR: I managed to float almost to the surface. When I opened my eyes I could see daylight. I was digging. I managed to get my mouth free.
I was already choking. Took a few breaths. After about five minutes of struggling, I got myself out. Looked around, realized there wasn't anybody else. I couldn't see any sleds, no gear. Nothing.
We heard James help (ph). We heard a crack again. I said, sorry, James, we got to run. As we were running away from James, he was saying, "Don't leave me here, don't leave me here."
We kept saying we're sorry. After we walked for about ten minutes or so, contemplating whether to go back, tried to look one more time. And as I turned and looked at the mountain, the whole center of the mountain come down burying everything again.
So we just decided that our best bet was to keep walking. I kept asking Jeremy what time it was because I knew if that 911 -- the 911 call worked it wouldn't be long for a helicopter.
(END VIDEO CLIP)
CHETRY: Just a heart-wrenching story. Victims of the avalanches were found after a three day search. People were scattered over an area the size of a football field. And you can really just, you know, hear the pain and see the pain on his face about making that decision. They couldn't dig out their friend without possibly or most likely dying themselves. And so, he's really tortured by it.
JOHNS: Horrific choices for sure.
So, coming up, Senator Clinton. The question is whether we're talking about Bill Clinton. There is a buzz out there that the former president could keep his wife's Senate seat warm.
CHETRY: Also, from stress to coffee to the hours you work, how the way you live can add or take away years from your life. We're paging Dr. Gupta ahead.
It's nine minutes after the hour.
(COMMERCIAL BREAK)
JOHNS: Ice, ice, water. As hundreds across the U.S. took the annual polar bear plunge on New Year's day. Now, this is a little crazy. The low was 15 degrees at Coney Island, six in Boston. Weather that just screams "Speedo."
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: No way.
JOHNS: And no, no, no, no, no. Look at that.
ROMANS: I have a lot of respect for all those people. I mean, like that's cool that you can do that. There's no way I could do that.
CHETRY: Shows you it's mind over matter because they don't look like they're that cold.
JOHNS: Yes.
CHETRY: And you know how cold it was yesterday.
JOHNS: Spiritual experience. That's all I got to say.
CHETRY: Exactly.
JOHNS: Clears your mind. To "Minding Your Business," I'm sorry.
ROMANS: And might be -- I don't know maybe a trip to the E.R. I don't know. I mean, it's cold out there.
JOHNS: Yes.
ROMANS: It's cold out there. How do they do it? I don't know either.
OK. So I'm here to tell you about the -- gosh -- the scandal that has just increased in fascination every single day. This is the Bernie Madoff scandal. And this week even more developments continuing to unfold.
A federal bankruptcy judge has allowed a trustee of Bernie Madoff's firm to have $28 million to pay for administrative costs. How much did Bernie Madoff have? Where did it go? Will anybody ever get it back? We don't know quite yet.
What did he have? This is what we do know. He had these three properties that a couple of these actually secured for his $10 million bail. He is in house arrest right now in Park Avenue in his apartment there that he bought in 1990 for a little over $3 million. He's got a Montauk, New York, estate that is beautiful and sprawling. He's had that at least since the 1980s and this Palm Beach, Florida mansion. So these properties he used -- a couple of these properties he used to secure that $10 million bail.
The fascination with this case only grows because look at the people who are involved. Ultra-private Swiss banks, Hollywood stars, like Kyra Sedgwick and Kevin Bacon and others, well-respected charities and foundations, heiresses and heirs to all kinds of different fortunes, even a blue-blood French hedge fund manager who was found dead in his apartment just a couple of weeks ago. I mean, there are new developments to this story every day.
Now lawmakers Monday will hold congressional hearings into just what role the SEC had in dropping the ball in watching him. Apparently, there were complaints about this firm.
I mean, it's incredible. And people who know him, the people who I know on Wall Street who know him, they tell me that they never could have suspected this from him. That he did create an air of exclusivity that there were people who we talked to who wanted to invest with Bernie Madoff and couldn't. He said no, I'm not accepting new clients. He -- it was almost like a velvet rope people were saying he put around himself.
JOHNS: Everybody wanted in.
ROMANS: Right.
CHETRY: And it does show you just how difficult it is for the SEC to be able to track this type of stuff, because I mean, you can make anything look like you want it to look on paper as we've learned it the hard way in 2008.
ROMANS: And a lot of people are wondering, did he do it alone? Was he -- as one guy on Wall Street told me, do you mean to tell me that for years he was locking himself up in his office by himself in the middle of the night and making up statements that he was sending to all his investors? Could one person do it?
CHETRY: A lot of questions.
ROMANS: A lot of questions. And I think the fascination is going to grow. I mean, the twists and turns are incredible.
CHETRY: You pointed out to me that was very good. We don't want to leave the impression in the last story that we did about the snowmobile survivor, Jeff Adams. He talked with tears in his eyes about having to leave his friend who was calling don't leave me.
Actually, eventually he and the other -- his other friend returned, dug their friend James out. Those were the three that survived. The other eight friends, unfortunately, did not make it because they were buried.
ROMANS: That story is remarkable.
JOHNS: Yes.
ROMANS: I mean, you can't imagine the rest of your life you'll carry that with you. Why did I make it? And what could I have done? But it doesn't sound like they could have done anything. The crack on the mountain and the whole mountain side come down. Incredible. It was just incredible.
CHETRY: Unbelievable story.
All right. We're going to take a quick break and we're going to be back at 16 minutes after the hour.
You pay your taxes but what about some of America's richest executives.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: These are the highest paid people at the company. They really ought to be able to pay their own taxes.
(END VIDEO CLIP)
CHETRY: So why aren't they? CNN investigates, and what we found will make your blood boil.
You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
JOHNS: Quite a house it is too. Welcome back to the Most Politics in the Morning.
Now, just 18 days until inauguration day, the Obamas are back on the mainland in the U.S. this morning after their Hawaii vacation. They will be in Washington this weekend, a very early arrival for an incoming president.
Rahm Emanuel plans to resign his congressional seat today. He'll officially become Barack Obama's White House chief of staff in 18 days. Illinois's fifth congressional district will have a special election to replace him.
Could Bill Clinton be a Senate seat warmer? The former president is one of the big names being circulated as a replacement for his wife Hillary in New York. CNN's Deb Feyerick has the tale of the tape for all the contenders.
DEBORAH FEYERICK, CNN CORRESPONDENT: Kiran, Joe, imagine it. Senator Bill Clinton, why not? So many qualified people want to be appointed to the Senate seat Hillary Clinton will leave when she's likely confirmed secretary of state. The question becomes why not put in a placeholder, a seat warmer, someone with the political clout let's say of Bill Clinton. This way the public can vote in two years who should hold the seat for the long run.
(BEGIN VIDEOTAPE)
FEYERICK (voice-over): They are big named New Yorkers. Caroline Kennedy, Andrew Cuomo, Carolyn Maloney and others, all jockeying to fill the state's soon to be empty seat and the stakes are high.
STU ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: There usually is a lot of turnover. Yes, particularly in New York where there are so many visible personalities or so much media coverage, I don't think it's a surprise.
FEYERICK: Which could be why Democratic Party advisers cited by the "Associated Press" suggest New York's governor, David Paterson, consider a seat warmer. Someone to level the playing field among so many qualified people and, instead, fill the Senate seat for two years while the others face each other in a special election.
In Delaware, the governor made just that choice, appointing a longtime Joe Biden adviser.
GOV. RUTH ANN MINNER (D), DELAWARE: In 2010, it should be the voters of the state without impact from anyone who decides who Delaware's U.S. senator will be.
FEYERICK: In New York, names bandied about as possible Senate seat warmers include former President Bill Clinton who has said categorically he's not interested. Or former New York Governor Mario Cuomo, whose son, state Attorney General Andrew Cuomo is a contender. Governor Paterson Thursday denied he's considering an interim senator.
GOV. DAVID PATERSON (D), NEW YORK: I'm actually opposed to that. It would cause New York to lose seniority. And in the United States Senate, the most effective senators are the ones that have seniority.
FEYERICK: Political observer Charlton McIlwain says any pick the governor makes is likely to be controversial.
CHARLTON MCILWAIN, PROF. OF COMMUNICATIONS, NEW YORK UNIVERSITY: The idea is if these people could get in there and make a good start, in two years run again. And if they are re-elected could really build on something that they have already started rather than simply having someone to sit there and just sort of fill time for two years.
(END VIDEOTAPE)
FEYERICK: Don't forget, anyone not appointed to the Senate could run for governor against Paterson, something he has to consider. As for Delaware, some political insiders suggest the two year placeholder will enable Joe Biden's Beau Biden to run for Senate after he returns from duty in Iraq next September -- Kiran, Joe.
CHETRY: All right. Deb Feyerick for us. Thanks.
Well, "Vanity Fair" taking an inside look at the Bush presidency through an oral history of many who were there. What went right, what went wrong. Some straight answers right from the White House.
It's 23 minutes after the hour.
JOHNS: A new year's celebration ruined.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: It was a really good party and then this tragic thing happened.
(END VIDEO CLIP)
JOHNS: A cruise ship employee reported overboard. The search and rescue mission underway in the Atlantic Ocean.
You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. You know, after eight years of a Bush White House what stands out and who was behind some of the most controversial decisions?
"Vanity Fair" is documenting it all after talking to scores of White House insiders. The article is called "Farewell to All of That, an Oral History of the Bush White House."
And joining me is now is "Vanity Fair's" national editor, Todd Purdum. Thanks for being with us this morning, Todd.
TODD PURDUM, NATIONAL EDITOR, "VANITY FAIR": Good morning.
CHETRY: Now in the opening of the "Vanity Fair" piece, you asked how did one two-term presidency go so wrong. And "Vanity Fair" has published several pieces critical of the Bush presidency throughout the eight years. What did you get in this oral history about what impression people will be left with of what these eight years represented?
PURDUM: Well, I think the overwhelming impression that a lot of people gave us was one of disappointment. And frankly in some ways, one of surprise. What was supposed to be such a competent, experienced team turned out to be not a team at all, especially in the first term. The national security team turned out to be quite dysfunctional with constant warfare between the state department, the defense department. The National Security Council not really working the way it should.
CHETRY: One of the most controversial figures in the White House, of course, was Vice President Dick Cheney. And in your article you quote sources, like Lawrence Wilkerson, who is the chief of staff for Secretary of State Colin Powell, as saying that even before Cheney took -- got there, even got the position that he was manipulating things, there were others though including two top Bush advisers who are speaking today in "The Washington Post" who say that that's really just a myth, that one of the mythologies was that the vice president was somehow pulling the strings on foreign policy.
"That's just hooey." That would be according to national security adviser Stephen Hadley.
So, as you hear the varying accounts from people, how do you get an accurate picture of exactly what Cheney's role was and how much influence he had?
PURDUM: Well, obviously I think you have to talk to a lot of people. You have to kind of get a mosaic of people's impressions across the board. And I think people do have different views about that and certainly the vice president's staff has its own views about it. National security adviser Hadley has his views.
Colonel Wilkerson was in a position to be, you know, directly in the paper flow of some the most sensitive things as General Powell's chief of staff. And I think what he was saying was that he saw over and over again the fingerprints of the vice president's office on various important matters like detainee policy, other foreign policy matters and it was clear from his perspective where the influence was coming from. So I think, it's, you know, you can't talk to just one person to get the complete picture.
CHETRY: Lawrence Wilkerson though has been highly critical of the Bush administration. He was, as we said, Secretary of State Colin Powell's former chief of staff. One of the things that he wrote that really struck me in your article was coming out with what Colin Powell's role ended up being, you know, for better or for worse in that first term.
He writes, "His task became essentially cleaning the dog -- blank off the carpet in the Oval Office. And he did that rather well but it had become all-consuming."
Now Powell has been described as this voice of dissent within Bush's inner circle. Only recently though have we heard him come out and publicly criticize the GOP or said the GOP needs to make sure that they're moving ahead with the future so they don't get left behind. At the time he was there in office, though, what was the picture painted of exactly where Colin Powell fit into the Bush White House?
PURDUM: Well, I think he was often an outsider. He did not for whatever reason manage to develop a close personal relationship with the president. I think the president was probably a little bit envious of General Powell's approval rating. Let's not forget when President Bush took office, Colin Powell was far better known, far more popular, far more respected than this new president. So I think that probably caused a certain amount of tension between them.
Colin Powell served the Bush administration very loyally and very well. We quote the former German foreign minister, Joschka Fischer, saying that Colin Powell would often had to hold his hand under the table and try to, you know, calm down the alliances across Europe by keeping them, you know, on the team.
CHETRY: Some very interesting stuff and it's a long article and it's fascinating for sure. We just tried to bring some highlights to our viewers today. But, Todd, thanks so much for joining us this morning.
PURDUM: Thanks for having me.
CHETRY: Todd from "Vanity Fair" -- Joe. JOHNS: It's 29 minutes past the hour. Here are this morning's top stories.
Barack Obama and his family are back in chilly Chicago after a 12-day vacation in Hawaii. The future first family will be only in their hometown for two days, heading back to Washington on Sunday so daughters Sasha and Malia can start their new school.
The man picked to take Barack Obama's Senate seat will be turned away Tuesday if he shows up for work. Democratic aides say Roland Burris will be blocked from setting foot on the Senate floor by the Senate door keeper. Burris has indicated he intends to be in the Senate on Tuesday but he's not going to create a scene.
A federal commission is pushing for a 50 percent increase on gasoline and diesel fuel taxes. Americans are driving less so there's less money to build and repair the country's roads. It's a second group this year calling for higher fuel taxes.
The U.S. Coast Guard is searching off Florida for a carnival cruise ship employee who was seen falling overboard early yesterday. Crew members who saw it, immediately notified the ship's command as search and rescue operation started. Our Ed Lavandera is tracking the story this morning.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): The "Carnival Sensation" cruise ship was just hours away from the end of a four-day new year's journey through the Bahamas when a crew member was seen falling overboard.
UNIDENTIFIED FEMALE: You really couldn't see anything. It's night. It's dark. But, you know, it's just a tragedy. I mean, he just fell over.
LAVANDERA: Carnival says it was an accident and describes the victim as an off duty male crew member of the entertainment staff. His name hasn't been released but one passenger says he knows something about him.
JOEL WEBER, PASSENGER: He said he was in the first round of "American Idol" and didn't make it and so he came on here to get his act together.
LAVANDERA: It happened just before 1 a.m. as the cruise passengers were celebrating the new year.
SUSAN KELSALL, PASSENGER: it was a really good party and then this tragic thing happened. So, you know, it affected the whole ship and you can see it in everybody's eye, you know, just so very sad.
LAVANDERA: The ship was about 20 miles off the Florida shore line. Six other crew members say they saw the man plunge 82 feet into the water. They through a lifeline and called the Coast Guard but the missing crew member has not been found. MARSHALL RIFF, U.S. COAST GUARD: Six to eight foot seas right now. It's pretty tough out there especially in those sea conditions to spot anybody in the water.
LAVANDERA: This accident comes just a week after a Florida woman on a Norwegian cruise line ship disappeared into the waters off the Mexican coastline. The search for her has been called off after her own family suggested she may have committed suicide. Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
JOHNS: Breaking news in the Middle East. Smoke rising from Gaza. Fresh proof of attacks by Israeli war planes. This video from Israel's military shows an air strike leveling a Gaza mosque. Israel says the place of worship was really used to stash weapons. An Israeli war plane also dropped 2,000 pound bomb on the home of a top Hamas leader, Nizar Rayan, leveling the four storey building.
Ramadan TV in Gaza showed Rayan's body being pulled from the rubble. We now know that some of the military hardware used in these attacks is American made. For more on this, Pentagon correspondent Barbara Starr joins us here in New York. Good to see you. Good morning. Happy new year.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Nice to see you. Happy new year to you too.
JOHNS: So what about this. American made weapons? What's the significance? What's the fallout from it, if any?
STARR: You know, when you just showed that video and talked about the 2,000 bomb this is part of the billions of dollars that Israel has spent buying weapons from the United States. Precision guided munitions, the F-15, the F-16 aircraft. These are aircraft that the U.S. military has used and now sold to Israel for years.
But precision-guided bombs are only precision in that they hit the target they are aimed at. We're getting these civilian casualties. These weapons are supposed to be used for a country's self-defense. Israel, obviously, believes this is self-defense against Hamas. But you see these civilian casualties. That's not why U.S. sell weapons abroad for the killing of innocent civilians.
So this is becoming very problematic. Israel now apparently shifting to a ground campaign because they are running out of targets from the air. How much of Gaza can you bomb?
JOHNS: It's not that big of a place.
STARR: It's not that big of a place. It's very densely populated with civilians. Israel tries, they say, to notify civilians to get out of the way. But that's not going to happen. We're seeing hundreds of people being killed. The world community is only going to stand for this for so long. And yet, it's important to say Hamas is doing much the same thing by firing rockets into Israel, longer and longer range rockets. It's apparently getting from Iran. So this can only go on so long. It's this reason that you're seeing people look for a political settlement.
JOHNS: So, Israel, obviously, does not want to bomb rubble, it's counter productive. As you said we're talking about a ground campaign. But what specifically are we looking for in this ground campaign? What is the objective?
STARR: The objective Israel says is to get rid of Hamas once and for all. But let's look at what the U.S. military has been through for years in Iraq, Afghanistan, counter insurgency, counter terrorism. Experts will tell you that you, you know, to use a phrase you can't kill them all.
You have a radical ideology driving this movement. Bombs, airplanes from the sky are not going to get rid of it. You look at what the U.S. did in Iraq. Get the civilian population on your side. Get jobs, economy, rebuilding in there and make the civilian population turn their back on the insurgents and the terrorists. People will tell you that's what Israel may have to do as part of this political settlement.
JOHNS: Barbara Starr, our Pentagon correspondent. Thanks so much.
STARR: Thank you.
CHETRY: Well a Muslim family is looking for answers after an airline kicked them off of a flight. The nine Muslim passengers including three children were headed from D.C. to a religious retreat in Florida when other passengers on the flight apparently became worried about a conversation they say they overheard about where the safest place would be to sit on the plane. One of the Muslim family members claims that the FBI cleared them of wrongdoing but that AirTran still wouldn't let them fly.
(BEGIN VIDEO CLIP)
ATIF IRFAN, KICKED OFF AIR TRAN FLIGHT: The airline told us that we can't fly the airline, that basically what they are saying to us they wouldn't book us on any flight even though the FBI agent went to the counter and recommended to them that we're completely safe. Their company or corporate policy basically is to not allow anyone I guess who has been in the situation to be allowed on to the plane.
(END VIDEO CLIP)
CHETRY: Well that man and his brother are going to be joining us exclusively in the 8:00 hour to explain what they feel what went wrong there. AirTran said that it acted properly and that it complied with all federal directives.
Well corporate fat cats living easy, making millions and not even paying their taxes? So who is paying their taxes? We have a look.
Also, do you find yourself saying things like work is killing me? Well, you may be right. We're paging our Dr. Gupta with ways to live longer. One of them is reducing stress. It's 37 minutes after the hour.
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CHETRY: A few things spark more outrage than those golden parachutes, big wig executives getting millions as parting gifts even as the company was driven into the ground. Well, now, here's the kicker. Many of them don't even pay taxes on those huge lump sums of cash. So guess who does?
CNN's Randi Kaye reports.
RANDI KAYE, CNN CORRESPONDENT: Joe, Kiran, they are at the top of their game. Rolling in dough. So why are some top executives getting their personal taxes paid for them?
(BEGIN VIDEOTAPE)
CAROL BOWIE, RISK METRICS GROUP: The feeling is, gee, these are the highest paid people at the company. Now they're getting a lot of extra perks and benefits and so on. They really ought to be able to pay their own taxes on it.
KAYE (voice-over): But they are not. Carol Bowie and her team at Risk Metrics Group, which advises shareholders, analyzed compensation from firms in the S&P 500 and found two-thirds of those companies willing to cover millions of dollars in taxes for their top managers severance packages. Why?
The Tax Reform Act of 1984 imposed a stiff penalty, an additional 20 percent tax on multimillion dollar golden parachutes for executives who were fired in a merger or takeover. The companies believe offering to pay this tax helps them attract top talent. But it's the shareholders who are left holding the bill for executives as they are being shown the door.
BOWIE: It's really become, in a way, a tax on shareholders.
KAYE: The payment is called a tax gross-up.
BOWIE: In our study, according to the numbers that we saw, the average gross-up was over $13 million. Just for the gross-up alone.
KAYE: When Circuit City CEO lost his job last year, the company agreed to pay $1.6 million in his taxes on his $3.6 million severance package. So the CEO didn't have to pay any taxes at all. That cost investors a bundle.
KAYE (on-camera): Some shareholders are so fed up they petitioned companies to do away with the gross-up taxes, "keeping them honest" we want to know if any have phased them out. MetLife told us they decided to eliminate it and Colgate has confirmed it has capped severance and done away with the gross-up provision. In fact, risk metrics says at least 10 companies in the S&P 500 have revised their severance agreements. KAYE (voice-over): But that means the great majority of companies you probably own in your 401(k), hundreds of companies still plan to pay millions to executives when they are fired after a take over. But President-elect Barack Obama has been critical of golden parachutes and executive pay. In 2007 he introduced a bill that would allow shareholders to vote on CEO pay.
(END VIDEOTAPE)
KAYE: With Obama in the White House, top executives may need to dust off their checkbooks -- Joe, Kiran.
CHETRY: Randi Kaye for us, thanks so much.
We've been talking about these types of things and complaining about them for seven, eight years or more. The difference you say this year, though, is we're shareholders now in some of these companies.
ROMANS: Yes, we're shareholders in some of these companies. 206 banks, the Treasury owns a stake in 206 banks. Citigroup this week announced it's going to paying it's top executives tied to performance. Citigroup had to take $45 billion of your money and my money, $45 billion of our money to prop up Citigroup.
And now they are talking about tying pay to performance. One thing that is interesting. So we've been complaining about this for a long time. And don't get me wrong. I mean, CEO --
JOHNS: Since Enron --
ROMANS: Since Enron for seven or eight years and shareholders have been screaming about these and a few companies, a few companies have started to say, OK, some of this is a little over the top. But most companies really push back when shareholders every spring try to you know launch a proxy fight to change something the way a company is run and the way these executives are compensated. The companies really fight back.
And remember the salary is such a small part of what CEOs get. There's deferred compensation. There's bonuses, restricted stock, stock options, like these incredible retirement plans and then there are, personal use of money managers, personal use of company jets, personal use of car and driver, exclusive country club. That's all for business purposes.
JOHNS: So when a CEO acts and says I'm only going to take a dollar in compensation.
ROMANS: Oh boy, my radar goes up and up and up. Because there's all kinds of different plans that help out the CEO. So you know, take that with a grain of salt. Well, another thing that a lot of hedge fund managers have told me is that when a CEO is paid -- this is something for investors to really you know, to take to heart -- when a CEO is paid an awful lot of money, $40 million for a job, he says you sell the stock. Why? Because they are being paid for their previous performance at other companies and they might not have the magic anymore frankly. They have on the lifecycle of CEO by the time they are paid that much history shows they don't really do all that great of a job.
CHETRY: Isn't that what happens in sports?
JOHNS: Yes, exactly right.
ROMANS: Well these guys think they are like --
JOHNS: In the news business, when you're hungry that's when you do your best work.
ROMANS: That's right. That's right. So that's something to keep in mind. The grossing up, Randi's piece is so incredible. Because I mean, these are things that for years we've been talking about that shareholders are screaming about. The difference now is that we are shareholders in so many of these companies. So can they get away with it? Is the Treasury Department going to put some teeth behind some of their requests or they're just going to let this continue? I don't know.
CHETRY: Only time will tell.
JOHNS: Oh, yes. There you go.
ROMANS: And in many years, we'll be sitting here saying --
JOHNS: We need fangs.
CHETRY: Yes.
JOHNS: She was reporting on how to survive a layoff when she herself became the story. Meet the NPR correspondent who finished her piece on the economy by announcing her own firing. Plus, a winter holiday in a popular resort town turns to a night of terror. The latest on the bomb threat that brought Aspen, Colorado to a standstill. It's 45 minutes past the hour.
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JOHNS: Well, we can't exact live forever but there are ways to live longer. Every day decisions such as something as simple as flossing your teeth can add or subtract healthy years from your life. We're paging our chief medical correspondent, Dr. Sanjay Gupta for more on our "Living Longer" series. Good morning, Sanjay?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Good morning, Joe.
JOHNS: Flossing?
GUPTA: Yes. I mean, flossing. You know what they say no one wants to live forever but no one wants to die tomorrow either. And here in lies the problem. There are some simple things you can do every day to try and prolong your chances at having a longer life. Flossing, you mentioned. The idea here is that flossing can add a year to your life because it takes away some of the inflammation of your body. Inflammation is such a big killer. It's such a big problem that can increase your chance of all sorts of diseases. Simply getting rid of that inflammation can help a lot.
In fact, we really want to find several things that people can add to their life on a daily basis that might make a difference. Thomas Pearl is an aging expert. He has a whole list of things. Flossing, you mentioned. Also low-dose aspirin. That is something to check with your doctor but that's something that could add up to two years to your life. Simply limiting your coffee intake. Hard for morning anchors over there. Limit your coffee intake, it can add a year.
Checking your vital signs. This is something we've talked about before. But if you can find high blood pressure before it becomes a problem, add a year and a half to that. Exercising three times a week that can add three years. And cutting down on a work week from whatever it is to 40 to 50 hours that can add some time as well.
JOHNS: Now let met ask you right there. Workaholic nation, how do you cut down from 50 to say 40 hours? That's pretty hard, isn't? You'll end up putting more stress on yourself because you could be out of a job.
GUPTA: Well, you know, I mean part of the thing here is that how much stress is your job adding to your life and what does stress really do to the body? I think that's one of the questions. Take a look here.
I mean, this idea that stress and physical ailments are inter- related is absolutely true. If you sort of start to go down the body from head to toe, you can find it affects a lot of things and starts off in the jaw, people may clench their jaw a lot, come down a little bit into the cardiovascular system, increases your likelihood of heart disease and stroke. In the digestive system, it can increase your nausea, stomach complaints, GI irritation.
Overall, if you look at the whole body, it increases your likelihood to succumb to infections, it depresses your immune system. Exactly, how you cut down your own work week, that's obviously for every individual to decide. But look at what it does to the body. There might be some inspiration to go out and do something.
Let me point out something else, Joe. No one has officially died of old age since 1951. They took that off the books in 1951. It's all these other things that ultimately cause death. You got to try and decrease them
JOHNS: Dr. Sanjay Gupta, thanks so much for that and I'll have it take it under consideration.
GUPTA: All right. Doctor's orders.
JOHNS: You bet. 51 minutes after the hour. (BEGIN VIDEOTAPE)
CHETRY (voice-over): Change of address. Barack Obama goes to Washington and gets detoured to a hotel.
UNIDENTIFIED MALE: There certainly was a lot of whispers when that came out.
CHETRY: Where the president-elect will be staying in the meantime.
Getting a second chance to be a first-time mom.
UNIDENTIFIED FEMALE: When I think about my girls and how they got here, how can you not be awed and amazed!
CHETRY: The ground breaking surgery that's changing and creating lives on the Most News in the Morning.
(COMMERCIAL BREAK)
JOHNS: An NPR reporter doing a piece on surviving a layoff was looking for the perfect ending to her special series and found it when she was fired. But she's not done helping our listeners try to get by.
Ketzel Levine was a reporter for National Public Radio, on and off, for 30 years. She's in Portland, Oregon today and joining us to talk a little bit. So the series was called "American Moxie," it was focused on people who were struggling, even people who are losing their jobs. And then, the story comes to a surprise ending. Yes.
KETZEL LEVINE, RADIO REPORTER: You bet it is.
JOHNS: Tell us about it. What happened?
LEVINE: Well, what happened? The economy. This is what I'm told. I was booking by flight to continue with the "American Moxie" series on NPR and suddenly word came back to me that there was no more travel and for a series and a job that was based on travel, I thought, ah, this is not a good sign. Sure enough, two weeks later, I was laid off along with, I might add, 63 other dear and delightful colleagues.
JOHNS: So the irony I'm sure hits you immediately?
LEVINE: At the time, I have to be honest, it didn't quite hit me. Then when it really settled in, I realized, you know what, this is the perfect ending to my series.
JOHNS: True. OK. So, among the people you were profiling, there was a 42-year-old grandmother working two jobs, facing the loss of her health insurance for herself and her mentally ill daughter. Also, a small business owner coming back from a $500,000 loss. How do you now sort of put their stories in perspective certainly with your own? LEVINE: Well, you know, I do think that there's a common denominator here. I think first of all, we probably were all in real shock at the point, certainly when one woman discovered that she lost $500,000 on the Millennium Park Project in Chicago. And when the woman who worked two jobs realized that she only has months left for her daughter to be able to receive medication.
And my shock, this enormous sense of loss that you go there, when the ways which you defined yourself and the things that you live for and by are taken away. In the big scheme of things, I'm very lucky. I feel very lucky. I'm not remotely worried. And I learned that from a small business owner. You know, no fear. Yes, you're in shock. Your sense lost. You worry about what to do next? What your game plan is but I don't feel fear and that's a great relief to me.
JOHNS: And it also sounds like you have quite a fan club out there now, something like 500 letters, e-mails, what have you, from people who were basically sending messages, pretty much of good will. Can you share a couple of those with us now?
LEVINE: Yes, well, I had a couple of favorites. The guy that sent me the $1,000. But you know, I had to return it.
JOHNS: Wow.
LEVINE: And he warned me that you know he hoped I didn't regret returning it. but my favorite letters was one of them said -- you know brace yourself, things are about to happen as you could never have imagines it is all about to begin -- that was really nice
And then the other one --
JOHNS: Positive stuff.
LEVINE: Everybody was positive. Everybody was positive --
JOHNS: Well, what was the other one. I'm sorry --
LEVINE: Wallow, this is good -- wallow in anger and despair. Then get up, shake it off and get going.
So you know again, the bottom line is with a lot of these people who I heard from, you know they've got the guts, the "American Moxie" came in and actually feeling what they were feeling. I mean looking at what the crisis is, not denying it. And then making decision to sort of mourn loss, which you need to and then get on with it.
JOHNS: So there's a lot of wisdom, and a lot of experiences that people couldn't share. It's a support group in some ways.
LEVINE: It is. You know it's really great that you mentioned that because one person said, we need each other to do this. And that's how I feel about this group that reached out is that there are a lot of people who are in trouble and even to just share stories is the way to feel less alone as the proverbial you know what hits the fan. JOHNS: Wow. Well thanks so much Ketzel Levine for coming in, talking to us, happy new year.
LEVINE: Thank you very much, Joe. OK.
CHETRY: Breaking news now and major developments out of the Middle East. Right now, new air strikes against suspected Hamas targets in Gaza as the death toll continues to rise. Palestinians say more than 421 people have now died since the raids began seven days ago. Israel's newspapers also reporting the country's top military brass are becoming a short but major ground invasion of Gaza. We'll get a live report from the border in just a moment.
CHETRY: A bomb squad interrupts new year's in Aspen, Colorado. Police says James Blanning delivered threatening notes and demanding $60,000 and four bombs across the resort town. Homes and businesses in the downtown area had to be evacuated. The 72-year-old parolee was later found dead in his car. The police say he committed suicide. The city tried to recapture the holiday last night with a rescheduled fire works display.
And Rahm Emanuel plans to resign his congressional seat today. He'll officially become Barack Obama's White House chief of staff in just 18 days. Emanuel also wrote a resignation letter to the Illinois governor, Illinois's fifth congressional district will have a special --
