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Obama Closes Gitmo; George Mitchell to be Appointed Mideast Envoy; Challenges Ahead for Secretary Clinton; Record Jobless Numbers Reported; Is U.S. in a Depression?; Former Gitmo Detainee Suing Over Treatment

Aired January 22, 2009 - 13:00   ET

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

(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The process whereby Guantanamo will be closed no later than one year from now.

(END VIDEO CLIP)

KYRA PHILLIPS, CNN HOST: The power of the presidency. A campaign promise becomes United States policy. Change comes to the war on terror.

And it's not exactly quiet on the diplomatic front. The newly- sworn secretary of state tells triumphant staffers a new era is under way.

(END VIDEOTAPE)

PHILLIPS: Hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.

A new administration, new rules, new faces. We've got it all covered for you, including stories that might shock you, might inspire you, and will definitely get you talking.

(BEGIN VIDEO CLIP)

QUESTION: What was your worst day?

MUHAMMAD SAAD IQBAL, FORMER GUANTANAMO DETAINEE: They sent teams inside my cells, and they beat me over there. And I was in hunger strike for six months at that time.

(END VIDEO CLIP)

PHILLIPS: A free man shackled by painful memories. He's out of Guantanamo prison and in court. His target: the United States.

Plus, he lives in an Indian slum, and he's no millionaire. But his dogged persistence is paying off. The movie "Slumdog Millionaire" puts the spotlight on Mumbai's sprawling slums. And we're going to take you there.

But first, new terms for the war on terror. President Obama today signed orders that will close the detention camp at Guantanamo Bay, though maybe not as quickly as some of Gitmo's critics might like. He also barred interrogation methods that violate the Geneva Conventions or the U.S. Army Field Manual.

In just a few minutes we expect to hear more about that and the economy and many other issues in the first White House press briefing of the Obama era.

While we wait, let's hear from CNN's senior White House correspondent, Ed Henry.

Ed, I understand you have something new?

ED HENRY, CNN CORRESPONDENT: That's right, Kyra. We're actually getting some new information about another new face. You should talk about how they assembled this team. CNN learning that later today at the State Department, President Obama is going to name former Senate majority leader, George Mitchell, as his special Mideast envoy. That's going to happen in an event at about 2:40 Eastern Time today with newly-sworn-in Secretary of State Hillary Clinton there, as well.

Our State Department producer, Elise Lavin (ph), hearing that the administration has been reaching out to various diplomats in recent days, and they're hearing very favorable reaction.

You remember, George Mitchell served as a special Mideast envoy for former President Bush back in 2001. He helped broker Northern Ireland peace for former President Clinton, as well.

And what they're trying to show with this move is a clean break from the Bush administration, trying to suggest that from almost day one, at least day three here, that President Obama is going to get actively engaged in the Mideast peace process. There's been a lot of criticism that former President Bush did not do that soon enough.

And as you just laid out with these executive orders on closing down the U.S. military prison at Guantanamo Bay, again, they're trying to show a clean break from the Bush administration and how they executed the war on terror.

And you can bet there will be a lot more questions about that, exactly how you're going to close down that prison, when Robert Gibbs faces the microphones, the cameras, for the very first time in that briefing room, Kyra.

PHILLIPS: All right. And I know you'll be there with us, Ed. We're going to talk more, see what he says, see how transparent this administration is.

And don't forget: the inaugural White House news briefing of the Obama administration, like Ed said, 1:30 Eastern Time, less than half- an-hour from now. You'll see it live right here on CNN.

Now, so far at least, it's been a pretty good first day of work for Hillary Clinton. The morning after her 94-2 Senate confirmation vote, the former first lady and former U.S. senator arrived to a hero's welcome at the State Department. And later this hour she'll be joined by President Obama and Vice President Biden, and next hour we'll listen in as they rally the staff.

In the meantime, let's bring in CNN foreign affairs correspondent, Jill Dougherty.

Now, Jill, where in the world does Secretary Clinton even begin, and is she going to be getting on a plane and heading to some hotspot tomorrow? What's on the agenda?

JILL DOUGHERTY, CNN CORRESPONDENT: Well, she'll be jumping on a plane eventually, and she'll be doing a lot of traveling but not necessarily immediately, because what you're going to see with this administration, in contrast to the Bush administration, is the use of special envoys. And you heard from that from Ed just a few minutes ago.

These are the people who are going to be flying around. These are the people who are going to do the in-the-trenches type of work to bring together deals.

Hillary Clinton will be the person who will, you know, be the public face of diplomacy. Certainly people know her. She knows a lot of people, but she will not be down in the trenches.

That said, again she is going to be doing a lot of traveling.

PHILLIPS: All right, Jill. We can't talk about Secretary Clinton and President Obama, of course, without talking about their famous differences. I'm told now that we just got a sound bite put together to kind of remind us how Mrs. Clinton during the campaign talked about this issue. Let's take a listen.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: I disagree with his continuing to say that he would meet with some of the worst dictators in the world without preconditions and without the real, you know, understanding of what we would get from it.

So I think you've got to look at, you know, what I have done over a number of years, traveling on behalf of our country, to more than 80 countries.

OBAMA: And I have disagreed with Senator Clinton on, for example, meeting with Iraq. I think -- and the national intelligence estimate, the last report suggested that, if we are meeting with them, talking to them, and offering them both carrots and sticks, they are more likely to change their behavior.

(END VIDEO CLIP)

PHILLIPS: All right, Jill, we know it is good to have debate, have a back and forth, but will attitude have to change here in order for them to truly work together?

DOUGHERTY: Yes, it's a different world. You know, Kyra, when -- that seems like a long time ago, doesn't it? The debates, the campaign, et cetera. That's a very black-and-white world. Everything is written in big letters so that people don't make any mistakes. And you stake out your territory.

But when you're at the State Department, this is a place of diplomacy. This is a place of subtlety. This is a place of nuance. And so what Hillary Clinton has to do now is quite different.

Number one, she has to make sure that she carries out the foreign policy set by Barack Obama. And then, also, she has to make sure that there is -- that she is not -- there's no light between them on that. And then also she has to deal in these subtleties and they're tough, and that is what she's going to have to do. That's the real challenge.

PHILLIPS: All right. I know coming up at 2 p.m., we're going to talk more about that challenge and the relationship between Clinton and Obama. Jill Dougherty, thank you so much. We'll see you in about an hour.

And don't forget: we expect to hear from Secretary of State Clinton and President Obama, 2:40 Eastern Time. You'll hear it live right here on CNN.

Citing personal reasons, Caroline Kennedy has pulled out of the running for Hillary Clinton's vacant Senate seat. Recent polls have shown that her popularity among New Yorkers is actually dropping, and leading those polls? State Attorney General Andrew Cuomo.

Other contenders are thought to include House members Carolyn Maloney, Kirsten Galibrand and also Steve Israel, and United Federation of Teachers president, Randy Weingarten.

Now, New York Governor David Paterson told CNN Monday that he hoped to appoint Clinton's successor in the next few days.

Caroline Kennedy's decision comes after her uncle, Senator Ted Kennedy, suffered a seizure at the inaugural luncheon. Don't know if that plays a part on her decision or not. The Massachusetts Democrat, as you know, was diagnosed with brain cancer last May.

Oh, boy. The hits just keep coming. Hits to the economy is what I'm talking about. The number of first-time filers for jobless benefits last week hit a 26-year high. That's the word from the Labor Department coming to us.

And one reason for that increase, well, states are finally catching up on a backlog of applications. There's been so many lately that the computers actually crashed.

The government says that Michigan lost the most jobs for the week ending January 10: nearly 35,000 people shown the door there.

So which companies are cutting back? Earlier this week United Airlines, broadcast giant Clear Channel, phone-maker Ericsson and others all announced layoffs. And today thousands of technology industry workers are finding that they're out of a job, as well. Susan Lisovicz at the New York Stock Exchange with more details.

Hey, Susan, it's definitely -- the tough times are not getting any easier.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Kyra. When you're -- you know, when you're losing your job, afraid of losing your job, or have no access to credit, you're going to see the consequences in all sectors of the economy. And that's what's happening.

Microsoft, the tech juggernaut, announcing that its quarterly revenue declined 8 percent. That was obviously worse than Wall Street expected. Microsoft said it's not immune to the effects of the economy. This rich, powerful company is taking big steps. It is cutting up to 5,000 jobs or 5.5 percent of its workforce.

That is a big deal for Microsoft. It's the first companywide firing since the company was founded 34 years ago. It's also going to do other things like cut travel costs, delay a campus expansion, eliminate married-base pay raises.

But when Microsoft is talking about slowing demand for PCs, you're going to see reaction elsewhere, too, like chip giant Intel is closing several factories, and it's going to displace up to 6,000 workers.

Chemicals maker Huntsman, which is based in Texas, says it will cut nearly 1,200 jobs. It will also cut 500 full-time contractor jobs.

And in the retail sector, it was a lousy holiday season. We all know that. Williams-Sonoma, which makes upscale kitchen stuff, is slashing 18 percent of its staff. Its sales plunged about 25 percent over that important holiday season. So you're seeing these measures play out in January.

You talk about last week's unemployment claims. You're going to see another jump this week, for sure, with what we're seeing in this month of January -- Kyra.

PHILLIPS: All right. Susan, thanks so much.

Of course, all that leads us to the question are we in a severe recession or a not-so-Great Depression? It really depends on whom you ask. And it's not an easy diagnosis, as we've all seen.

Here's CNN's Christine Romans.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN CORRESPONDENT (voice-over): President Obama knew he was taking office in the grips of a nasty recession. But is it something worse? There it is in black and white: "U.S. depression looking likely" from Albert Edwards, a London-based analyst for French bank Societe General. He wrote last week, quote, "Economic data has been truly dreadful, consistent with something far worse than a deep recession." Scary stuff and pretty much the worst-case scenario.

Labor economist Peter Morici also recently declared, quote, "The U.S. is already in the jaws of a depression."

PETER MORICI, UNIVERSITY OF MARYLAND: We're in a depression because of structural issues in the economy. Our excessive dependence on imported oil and our huge trade deficit are pulling us down. The stimulus package will give us some temporary relief, but then the economy will sink back.

ROMANS: The very word "depression" conjures up the most unpleasant memories of the last century: 25 percent unemployment and an economy that shrank 30 percent. Depressions are so rare, there isn't really an official definition.

(on camera) Is this a depression?

ANIRVAN BANERJI, ECONOMIC CYCLE RESEARCH INSTITUTE: No, it is not.

ROMANS (voice-over): Anirvan Banerji studies economic cycles. First, there was a downturn. Then a slowdown. Now an official recession. But a depression, he says, it is not.

BANERJI: If the economy looks bad now, for it to be in depression means it will look much worse, several times as bad.

ROMANS: Many wonder how can we be in a depression when the majority of Americans have not lost their job or home, and every-day life looks, on the surface, at least, pretty much the same? But, that fear of depression runs deep, fear shared by the last treasury secretary and the Fed chairman last fall.

GEORGE W. BUSH, FORMER PRESIDENT OF THE UNITED STATES: I was concerned that the credit freeze would cause us to be headed toward a depression greater than the Great Depression. That's what I was told. We didn't move.

ROMANS: Outgoing President Bush says his actions prevented it. President Obama plans to spend hundreds of billions more to make sure it doesn't happen on his watch.

(on camera) This is all semantics, really. We didn't even start using the word "recession" until after the Great Depression. So call it a severe recession, a depression; it doesn't change what people are feeling. And economists agree, there will be more layoffs; more businesses will fail; and there will be more foreclosures in the coming months.

Christine Romans, CNN, New York.

(END VIDEOTAPE) PHILLIPS: And get this: the National Bureau of Economic Research, the people who officially declare recessions, well, it says the Great Depression was actually two recessions back-to-back with a short break in between.

And of course, ask anyone from that era, and they'll likely say the word "recession" doesn't begin to do the era justice. Most folks would tell you the Great Depression began in 1929 and ended when the U.S. entered World War II.

So what's wrong with this picture? Temperatures in parts of the Florida Keys in the 40s this morning. There we go. Bizarre. And snow on the beach in North Carolina? Well, we're going to find out when things are going to get back to normal.

And also this:

(BEGIN VIDEO CLIP)

QUESTION: I had a wonderful time. Everything went great. And then the flight home turned into a nightmare.

(END VIDEO CLIP)

PHILLIPS: They had to be thinking, "Will we ever get off this plane?" A flight from Mexico City to the U.S. turned into an awful experience for dozens of passengers. We're going to tell you what happened.

(COMMERCIAL BREAK)

PHILLIPS: Six-plus years in Guantanamo prison. One former detainee says it pushed him to the edge. Now he's looking to hold the U.S. accountable. He's out of prison and in court.

(COMMERCIAL BREAK)

PHILLIPS: A new administration means new rules. President Obama proved just that a couple hours ago, signing several executive orders that changed the way the U.S. handles terror suspects. One calls for closing the prison at the Guantanamo Bay Naval Base within a year. Another essentially bans harsh interrogation methods that critics have called torture.

(BEGIN VIDEO CLIP)

OBAMA: It reflects the best judgment of our military, that we can abide by a rule that says we don't torture. But that we can still effectively obtain the intelligence that we need. This is me following through on not just a commitment I made during the campaign.

(END VIDEO CLIP)

PHILLIPS: Torture is what one former Guantanamo detainee says he endured for years on end, and it drove him to the extreme. CNN's Reza Sayah has his story. (BEGIN VIDEOTAPE)

REZA SAYAH, CNN CORRESPONDENT (voice-over): In September 2003, life as a prisoner in Guantanamo Bay was no longer worth living for Muhammad Saad Iqbal.

(on camera) And you wanted everything to end?

IQBAL: Yes.

SAYAH (voice-over): So, while no one watched, he says he and several prison mates tried to hang themselves with bed sheets.

IQBAL: We handled that (INAUDIBLE) for ourselves. And we put inside our neck, and we tried to hang ourselves.

SAYAH: Four people died, says Iqbal. He survived. And so continued what he calls the theft of his freedom by the U.S. government. Nearly seven years behind bars, then a sudden release, he says, without anyone telling him why.

IQBAL: Definitely I'm angry in my heart. It is easy for U.S. government to say there's no charges found and he's free, but who will be responsible for seven years of my life?

SAYAH: The Pakistani citizen lost his freedom in January of 2002 while visiting family in Indonesia. Reports say he was arrested after talking about making a shoe bomb, something he denies.

IQBAL: They have talking about me a lot of things, like I went to Afghanistan. But they have no proof I went to Afghanistan.

SAYAH: Iqbal says while in U.S. custody, he was taken to Egypt, then to Bagram Air Force Base in Afghanistan. In March 2003, he arrived at the military prison that became a flashpoint for critics of the Bush administration's war on terror.

Iqbal was among nearly 800 inmates who came through Guantanamo Bay. Washington called them suspected terrorists, but most were never charged with a crime. Iqbal says he came back to Pakistan with back pain, a bad leg and a torn eardrum, all a result of years in custody.

(on camera) What was your worst day?

IQBAL: They sent teams inside my cells, and they beat me over there. And I was in hunger strike for six months at that time. I can't even walk, but they put me in four by four. My handcuffs has been tied to the handcuffs, and my legs also had leg -- leg shackles.

SAYAH (voice-over): The CIA and Pentagon deny allegations of mistreatment and torture, saying all interrogation is lawfully done.

In response to Iqbal's allegations, a CIA spokesman told "The New York Times," quote, "I have no idea what he's talking about," adding, "he appears to be describing something utterly different."

This past September, with the help of a U.S.-based lawyer, Iqbal was released without ever being charged.

(on camera) "I do appreciate your devotion and sincerity." This is what you wrote to your lawyer.

(voice-over) His lawyer is suing the U.S. government for unlawful detention. Iqbal says he wants justice but not through violence.

IQBAL: We have to convey that Islam is a peaceful religion.

SAYAH: Today the man who tried to hang himself says he feels born again.

IQBAL: I feel born again and am given new life.

SAYAH: Reza Sayah, CNN, Islamabad.

IQBAL: ... I have dreams.

(END VIDEOTAPE)

PHILLIPS: It's one of the biggest fears about releasing terror suspects from Gitmo: that they'll go back to their alleged old ways. New Pentagon figures actually say 61 released detainees have been linked to some kind of terror activity, up from 37 as of March 2008.

About 520 Gitmo prisoners have been freed or transferred to other prisons around the world. One hundred and twenty-two were transferred in 2007, more than any other year so far.

An estimated 250 detainees remain at Gitmo, and it's not clear what will be done with them.

Well, you might have other questions about Gitmo, such as why did the U.S. set up a detention facility at its Navy base? And why do we have a prison camp in Cuba, of all places?

Josh Levs, got any answers for us?

JOSH LEVS, CNN CORRESPONDENT: You know, I think answers is all I got for you, Kyra. Yes, we got -- we got some good stuff. In fact, what I want to do is zoom right in on the board here. I want to show you where this is.

Let's zoom all the way down to Cuba. And while we're here, a few things to take a look at. We're going to get into this area here: Guantanamo Bay in this section. You see why it's called a bay.

Now, look at this. There are two things that were talked about, sometimes mixed the terms. You have all of Guantanamo Naval Base, and then you have this, which is the prison area there. And within this -- I'm going to get out of the way here -- Camp Delta, one of six camps at the prison base there, at the prison, that are used to hold on to many of these terrorism suspects.

Camp Delta you hear a lot about. In fact, we have some video I want to show you here from Guantanamo Bay. And it includes some video from Camp Delta.

Now, the cells are about eight feet long, seven feet wide, eight feet high. And no one is allowed on the base without U.S. permission. So the video we have often comes from the military, or it's screened by the military.

And I have some facts for you here. Now, you mentioned before, 250 detainees now, but at its peak there were actually 750. Five have died in U.S. custody.

And you were talking earlier about how long they've been there. The first ones from Afghanistan and Pakistan arrived in January of 2002. So it's about exactly seven years ago.

And obviously, as we know, we just saw in that piece there, the prison has been a tremendous source of controversy. A lot of questions raised about the treatment of the detainees there -- Kyra.

PHILLIPS: All right. Well, as we know the background here, if you look at the history, the U.S. and Cuba, we haven't had diplomatic relations.

LEVS: We have not.

PHILLIPS: So why a base there?

LEVS: Yes, you know why? Because it goes way back to before any of that happened. And way back as in more than a century ago. Let's give you some dates here.

1903 Cuba leased that area to the United States. And then what happened was in 1934, Cuba and the U.S. signed a perpetual lease, and it can only be broken by mutual consent. So what has to happen is there, the U.S. continues to pay. It's been sending lately checks for $4,085 a year.

Actually, Castro didn't even cash them. The Cuban government still does not. The Cuban government says the lease is illegal, but if you look at that lease, it has to be ended by mutual consent. So unless the United States wants to end it, Cuba therefore cannot do it on its own.

And that is why this person has been there, and that is why the naval base has continued to exist, even with no diplomatic relations with Cuba -- Kyra.

PHILLIPS: Be interesting to watch the next year and what happens with the prisoners.

LEVS: A lot can change.

PHILLIPS: All right. Thanks so much, Josh.

LEVS: Thank you.

PHILLIPS: Well, this isn't just sand that we're looking at. Take a look at it. It's snow on the beach in North Carolina. We're going to get the latest on the really cold weather that's got even Key West, Florida, shivering.

(COMMERCIAL BREAK)

PHILLIPS: Florida chilled to the bone again this morning. Parts of the state were even colder than Wyoming. Other parts of the country enjoying record warmth.

Bonnie Schneider joins us with a look at what is happening right now.

Bonnie, I've got about a day and a half before the girls' trip to Florida. We're not really happy right now. It's not good.

BONNIE SCHNEIDER, CNN METEOROLOGIST: Dress like you're in Atlanta in the winter.

PHILLIPS: Oh!

(WEATHER REPORT)

SCHNEIDER: Check out these pictures coming to us from the beaches across North Carolina. Kyra, it looks like we're looking at sand, but that's actually snow on top of the sand. If you have a beach house, you're expecting to take a nice walk out on the beach, got to put the snowshoes on.

PHILLIPS: That is just crazy!

SCHNEIDER: It is. It's unusual.

PHILLIPS: All right. We'll keep tracking it with you. Thanks so much, Bonnie.

SCHNEIDER: Sure.

PHILLIPS: Well, we're waiting for the new White House press secretary to hold his first briefing. And you're going to see it live right here in the CNN NEWSROOM.

You know, Barack Obama has talked so much about his new administration, how transparent it's going to be. Here are the live pictures right now. Looks like there's Major Garrett. He's actually -- wait a minute. There's Ed Henry -- yes, what's FOX -- oh, wait a minute! You know, let's point something out here, folks. Now that I'm looking at this.

This is -- Major Garrett works for FOX. He's in the second row. But there's our studly Ed Henry -- notice -- in the first row. So you know, Ed's playing with the big boys now. He's going to be up there with Helen Thomas and ABC, NBC.

And everybody's laughing at me right now. I'm going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Well, of all the tough jobs in the Obama administration, Robert Gibbs has one of the toughest. He's the new White House press secretary, the guy who actually has to face reporters every day, reporters like our Ed Henry, through the thick and the thin. He's just about to do it for the very first time.

We're going to bring you his bring his debut, start to finish, when he comes to the mike. And you're kind of getting a full view. And this is actually a new room. I'm already seeing new technology.

But I have to brag. Our Ed Henry scored the front-row seat. The only thing that scares me, Ed, is you're going to be hitting next to Helen Thomas. I hope she doesn't, you know, get in the way of your questioning. Has she been well-behaved?

ED HENRY, SENIOR WHITE HOUSE CORRESPONDENT: Very well-behaved. She's here. There are a lot of people. But it is a rowdy crowd. You can hear it around me and probably see the different views. It's sort of literally standing-room only for the first press briefing from Robert Gibbs. I'm going to sneak over my shoulder every now and again to see if he's coming out.

It's going to be our first look at someone who's going to be very high-profile. He's essentially the spokesman, not just for the president but in some cases for the United States of America now. A new face around the world in terms of speaking for the administration. And it's also a very thankless job, even though it is a high-powered job, because you've got to face all these tough questions. And it's going to be interesting to see how Robert Gibbs handles it.

He's somebody I've known a long time. A lot of people in this room have known him. He's been in politics. He came up through Capitol Hill as a Democratic staffer. He's from Alabama, so you'll probably see him at the podium with sort of a Southern demeanor, very soft-spoken. But don't let that disguise the fact that he's a hard- ball political operative deep down.

He's somebody who, during the political campaign, some reporters were frustrated with because, if they did stories that Robert Gibbs didn't like, he would come after them and let them know. He's not shy about letting them know that. So, he's very tough on the inside, even though on the outside he may seem like a very courtly gentleman. That's going to be interesting to play out.

And in fact, when there was a big profile in "The New York Times" Magazine a few weeks back that Mark Leibovich did about Robert Gibbs, the then-president-elect was quoted in there as saying that he loves the movie "Godfather." And he was asked, what character is Robert Gibbs like. And he said, Sonny Corleone. Anyone who's seen that movie knows that Sonny was a little hot-headed, I guess. So, don't let the exterior sort of fool you. Robert is a tough political operative.

PHILLIPS: Well, then that leads me into my next question. You know, the tradition is to pass off the flak jacket to the incoming press secretary, right? So, I'm curious, did Dana Perino leave him the flak jacket, did she leave a note in inside and did she leave the bottle of whiskey?

HENRY: She did. And he has not told us what was in that note. Maybe Robert will inform us. I'll peek over my shoulder. He's not here yet.

But he did get the flak jacket, he told me and others yesterday and over the last couple of days that Dana Perino did leave that flak jacket. It's a tradition that's passed on, as you said. It's left in the closet for the incoming press secretary so they can sort of take the slings and arrows from the front row and beyond.

PHILLIPS: Your bullet, specifically.

HENRY: Yes, absolutely. And I can tell you another piece of intelligence, which is that in recent weeks, Robert Gibbs has been sitting down with a lot of Democratic predecessors like Joe Lockhart, Mike McCurry. They've actually been going through prep sessions where people like that, some of the other incoming White House staffers have been sitting in sort of a fake front row and tossing questions at Robert Gibbs to see how he can handle the hot lights.

And so, this is something you have to practice for. This is not something you just walk into cold. Every word is scrutinized, and Robert Gibbs has been very upfront about saying that he knows that now, more than ever, you know, everything he says from that podium about the economy, about the war in Iraq, about the closing of the U.S. military prison at Guantanamo Bay, Cuba, you're now speaking for a president and you're speaking for a nation in some cases. And every single word is scrutinized.

So, it's going to be very interesting to see how he handles this. And another fascinating part of it is that Robert Gibbs is very, very close to the president, but some press secretaries who have come in and they didn't know the president extremely well, some of the press secretaries have not had sort of those walk-in privileges to the Oval Office, so they didn't always have all the inside information.

Robert Gibbs is just the opposite. He's extremely close to the president. They're on a first-name basis. And that could, though, sometimes be problematic for him down the road if he's too close to the president, because he has to serve a couple of different clients here, the president and speak for him, but he also in some cases has to be an advocate for the press and go into that Oval Office and say, look, we need to give some more information on this or that. It is a fine line.

PHILLIPS: Well, what are you going to ask him? What's going to be your first question?

HENRY; Well, then I would take all the drama out of your show. I think we should just let it play out.

PHILLIPS: OK, all right, then, OK, hold on to that. Fair enough. So, let me ask you a question, Ed, because I'm looking at the lineup. And I remember in the olden days, I was in the old press room, and they had everybody's name on little, you know, gold plates on the seats. Does that tradition still exist, and --

HENRY: Absolutely.

PHILLIPS: It does?

HENRY: Yes.

PHILLIPS: So your name is right there?

HENRY: No, not your name. It's the name of the organization.

PHILLIPS: OK, not your name. OK. So, in row one you've got you, the AP, CBS, NBC, Helen Thomas, ABC and Reuters. How did you -- can you explain how you got the first row? And is that political? Are you selected? How does that all work? No, really. How does it work?

HENRY: CNN was brought in, actually, just a couple of years ago, when they renovated it. There was one less seat in the old days. When they renovated, they added an extra seat. So, at that point about a year and a half ago, CNN moved from the second row to the front row. And that was based mostly by seniority, I believe, because CNN had been around a little longer than maybe another cable network that shall go nameless right now.

PHILLIPS: I already saw Major Garrett there in the second row.

HENRY: Oh, right. Oh, Major Garrett (INAUDIBLE).

PHILLIPS: As long as Fox is behind you -- that's right, Major's behind you.

HENRY: He is. He's turning red right now.

PHILLIPS: Tell him I said hi, and I miss him working for CNN.

HENRY: OK. Kyra Phillips says hello. I think we probably should get ready for this presser, though, Kyra.

PHILLIPS: We'll see you in a little bit, Ed. Thank you. You're a trooper. Oh, boy. I hope I keep my job.

Well, President Obama tapped this man to be his go-to guy on the economy. And today, Timothy Geithner's nomination as treasury secretary is moving forward. The Senate Finance Committee sent the nomination to the full Senate on an 18-5 vote despite Geithner admitting that he initially failed to pay $34,000 in taxes a few years ago.

The five "no" votes came from Republicans, but other GOP committee members say that they still have faith in Geithner.

(BEGIN VIDEO CLIP) SEN. ORRIN HATCH (R), UTAH: I intende to vote positively for this nominee. You know, I think there's room to criticize. Certainly, what happened shouldn't have happened, but I believe that he made honest mistakes, and I believe that this human being is the right person for this country at this time.

(END VIDEO CLIP)

PHILLIPS: President Obama's nominee for national intelligence director is also on Capitol Hill today. Retired Admiral Dennis Blair told the Senate Intelligence Committee that he wants to rebuild Americans' trust in their intel agencies, and he says the president's order to close the Guantanamo prison is needed, calling the facility a damaging symbol to the world.

Well, men and women suffer heart attacks, and they call 911, but when it comes to treatment, women have to endure a lot more delays. We're going to tell you why it happens and how to keep it from happening to you.

(COMMERCIAL BREAK)

PHILLIPS: Straight to the first Obama administration press conference. Robert Gibbs up at the mike. Let's listen in.

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: How are you all? Nice to be here.

QUESTION: How are you?

GIBBS: I'm great. Before I take a few of your questions, let me start out by letting you know something that we've added each day to the president's daily schedule. It's something that we're calling an economic daily briefing that he'll receive, most likely in the Oval Office, each and every day. It will be treated and prepared with the same sort of renowned professionalism that the daily intelligence briefing is done with.

It is -- will be put together each night. The president will receive a memo. It will be updated in the morning. The briefing will be led by NEC Director Larry Summers. This morning's daily briefing was attended by the president, the vice president, the White House chief of staff, OMB Director Peter Orszag, obviously Larry Summers, domestic policy director Melody Barnes, and Jared Bernstein, the vice president's chief economic adviser.

They walked through the day's economic news, the myriad of statistics that came out today on jobless claims and housing. The president asked that this be added each day to his schedule, as the country is in the midst of an economic crisis and an economic emergency. And he felt it was important that each day he receive the most up to date information as it relates to the economy, as we put together an economic reinvestment and recovery plan, as well as future financial stability packages to ensure that our economy gets moving again. And with that, let me entertain a few questions. Jennifer (ph)? QUESTION: Thanks, Robert. I just want to try again to better understand how you guys are saying that you're not going to use any interrogation techniques that fall outside the Army Field Manual for (INAUDIBLE) of these techniques. And yet there is a task force that's going to look at whether those techniques provide an appropriate means of acquiring intelligence necessary. I'm still not quite clear.

GIBBS: Some of the technical questions, obviously we had Greg help you guys understand a little bit of that, and we'll be happy to do that. Let me step back from the process just a little bit and describe in some detail what the president asked his team to do.

The president believes that there is no more important job that he has than to keep the American people safe. That everybody that works in this building and in this administration knows of his strong belief and understands its importance. The president believes that what he did today will enhance the security of the American people, that it lives up to our values as Americans, and that it will protect the men and women that we have in uniform.

This was done through long consultations, as Greg talked about, with folks in and out of government. I don't want to get -- I don't want to prejudge the executive orders of the commission that's going to happen. I know that as it relates to going forward, that everybody's under the Army Field Manual. The commission has been tasked with studying any number of different scenarios relating to detainees and interrogation, and I think what's best is to let that happen and see what happens when they come back.

Obviously, what started today was a process that the president committed to during the campaign and reiterated throughout the transition to close the detention facility at Guantanamo Bay. That process started today with his signature. That process will go on until the issues that were outlined are appropriately determined.

QUESTION: It sounds like what you all are saying is that the Army Field Manual is going to apply unless you decide maybe it shouldn't.

GIBBS: Well again, I don't want to prejudge the commission that's going to look at any number of different issues. I think the president has been very clear on what he believes protects the American people and protects the values that we have as Americans. Chip?

QUESTION: Some Republicans on Capitol Hill are already complaining about the Guantanamo decision, saying that what's going to happen is you'll have a lot of people transferred to countries overseas. They're going to be released for one reason or another, and they're going to go right back to waging war against American troops. How can the president make certain that doesn't happen?

GIBBS: Well, you know, before he signed the executive orders and the memoranda, he met with -- and I think the list has been distributed -- generals and flag officers that have been involved in keeping our country safe for quite some time. I'm told that there was a special interaction in the room and a real palpable pride on behalf of these generals and flag officers that the decision that the president was making today with his signature made America safer, made America stronger, lived up to our values, and protected the men and women that those generals and flag officers have sent out to protect our freedom each an every day.

He believes that with this, we've made our security stronger, we've done it in consultation with, as I said, members of current government, people that have been outside of government, people who have been involved in these decisions. There are certainly going to be people that are going to come at this from one angle. I think there are also a number of people that will come at it from the angle that the steps that were taken today ensure and enhance the security of the American people. Chuck?

CHUCK TODD, CHIEF WHITE HOUSE CORRESPONDENT, NBC NEWS: You said yesterday it was out of an abundance of caution that you did the re- swearing in. Out of that same abundance of caution has he re-signed the executives orders that he did yesterday?

GIBBS: No. No. Let me step back and address this. And I should call on Mark as well on this, because he had e-mailed me a question about whether or not there had been discussion of doing this. And I e-mailed him in the afternoon and said there had not been a discussion. The counsel's office believed strongly throughout the day that the president had been sworn in appropriately and effectively.

Discussion later in the afternoon regarding the misplacement of a word and, because of that, and out of an abundance of caution, Chief Justice Roberts came last night to re-administer the oath. I think that in today's papers there are at least two examples in history where words have been misplaced in the oath, and again, out of an abundance of caution, a similar abundance of caution, the oath was readministered.

TODD: Then why not resign the executive orders out of the same abundance of caution?

GIBBS: Because the counsel's office continues to believe that the president was sworn in appropriately and effectively.

TODD: Then why did you do it if you don't -- I mean, that's what I'm just trying -- if you don't feel like he needed to do it --

GIBBS: Well, Chuck, I think you know lawyers.

(LAUGHTER)

TODD: That's (INAUDIBLE) counting on Chip to (INAUDIBLE).

(LAUGHTER)

GIBBS: Well, I was going to say, I don't want to -- no raising of hands as to who is. They did not believe that there was a problem. But out of an abundance of caution to ensure that somebody didn't think there might ever be, that it was simply done again. The Constitution, as Greg said in his statement, is -- prescribes an oath. A word was misplaced, and out of an abundance of caution, the chief justice, over the course of a 25-second period of time, and under the slow and careful instruction of the president, the oath was readministered.

TODD: And In terms of transparency, why didn't you show the world this?

GIBBS: We did show the world this.

TODD: There was no -- you know, there was sort of crackling audio recordings of it. There's some still, you know, video. You put your radio address on video. I mean, you know, why not put it on video for everybody to see?

GIBBS: Let's be clear. You've just mentioned there's audio. I've heard that audio. I was there. Far easier to get tickets for this one. We took a print pool in there. We released a photograph from the White House. And as I think the pool reported, as soon as it happened, we reported it out. We think it was done in a way -- hold on. We think it was done in a way that was upfront and transparent. We think that it -- also did it in a way that demonstrated again this was done out of an abundance of caution, and only that. Yes, sir.

QUESTION: Did the original concern about the oath taking originate with the White House counsel or with the president?

GIBBS: My understanding is, the White House counsel.

QUESTION: Did he have to persuade the president that it was the right thing to do?

GIBBS: No, because it was done again out of an abundance of caution. It was not done --

(LAUGHTER)

-- what is -- that's -- you're too easy to laugh when I don't say something that's not all together generally funny.

No. This was something that was determined again at the counsel's office, and the president was fine with it. I think you guys read the pool report. He seemed he was in a pretty casual mood when he instructed the chief justice to do this more slowly and deliberately.

(CROSSTALK)

GIBBS: Jay?

QUESTION: Back to the executive orders today. As you know, there were a lot of intelligence officials in the outgoing administration, or the gone administration, that disagree with both of the decisions that rely on the Army Field Manual, as well as the decision to close Guantanamo Bay. I'm wondering, obviously members of the president's administration, agree with him, and it looks like member of this interagency task force, as far as I can tell, agree with these decisions.

Who did the president talk to? Who disagreed with him? Who made the argument, as the former president did, and the former vice president did, that actually relying on just the Army Field Manual and closing Guantanamo Bay puts the American people at risk? And how can you be certain, considering that the interagency task force has not met yet, that these decisions are the right ones?

GIBBS: Well, I think based on the consultation -- I don't have the list. I can certainly look into something like that. The president felt satisfied that the charge that he gave to his national security team was done in a broad enough way to ensure that any decision he made, to reiterate what I said earlier, that he understands the most important aspect of his job is to do everything humanly possible in his power to keep America safe. He believes that the consultation was done in a way that was -- that structured the executive orders and the memoranda in a way that ensures that the American people are safe.

(CROSSTALK)

QUESTION: If I could just follow up with that. I'm sorry. The current CIA director disagrees about the Army Field Manual being sufficient. What does the president and his team know that the current CIA director doesn't know?

GIBBS: I think the current CIA director has an opinion. I think the generals and flag officers that were in the room with the president prior to his signing of the executive orders have an opinion. I think there have been varying opinions in any number of administrations. The president's opinion, based on all that he heard and all that he saw, was that these executive orders lived up to the very high standard that he holds to do everything in his power to protect the American people.

HENRY: How can you say the executive order on Guantanamo Bay, you could say clearly made America safer today when it doesn't seem like you really have a plan yet about where the detainees are going to go?

GIBBS: Ed, one of the -- I think one of the things that the commission, and one of the things that the executive orders does is begin the process whereby the current administration can examine what exactly is going on, and who exactly is there. Those are, in some ways, records that have to be acquired, and that's what the commission will undertake is a study to determine that. Again, the process -- hold on.

HENRY: There's a study -- go ahead, make your point. I'm sorry.

GIBBS: Again, this is not something that was done -- not done with one signature. That's why I was careful in saying that the process by which this will undertake over the course of up to one year will determine, as Greg laid out, who's involved in what status of detainee, which group that they're involved in, and ultimately study how best to deal with them in a way that protects our country, protects our values and administers justice.

HENRY: So these are terror suspects. And the American people are hearing, Washington's going to study it. They're going to find out for a few more months, what are we going to do with these detainees. So, what --

GIBBS: Well, this is day two.

HENRY: OK. But you've been talking about this for months...

GIBBS: We worked late last night, but we didn't work that late.

HENRY: ... no, but he was talking about it on the campaign for months, about Guantanamo Bay.

QUESTION: Day three. Tuesday, Wednesday, Thursday. Day three.

GIBBS: Depends when he got sworn in, right?

TODD: Depends on when he got sworn in.

GIBBS: I want the record to reflect that Chuck stole my line.

HENRY: But the bottom line is that you've been talking about it -- the president talked about it on the campaign trail. People have studied this for a long time. And you're now signing the executive order without a plan for where the detainees will be? What assurances can you give --

GIBBS: We signed the executive order to establish a plan for what happens.

HENRY: What assurance can you give the American people these detainees just won't wind up out on the streets, won't go back to their home countries and launch new terror attacks?

GIBBS: I can assure them that all of what you just enumerated will be undertaken and studied as part of a commission to look into these very commplex, very detailed questions. The president believes that he enhanced the security of the American people. He understands that's his most important job. That justice has to be rendered, and that our values have to be upheld. All of those are going to be determined as it relates to going forward in Guantanamo.

HENRY: (INAUDIBLE) executive order yesterday on lobbying, the president said he was going to be closing the revolving door and that basically anybody who had been a lobbyist comes into his administration, they can't work on the issues they lobbied on. You've got William Lynn, who's the nominee to be the deputy defense secretary, who was a lobbyist for Raytheon, a major defense contractor. How can the president say that he's preventing people from working in the areas where they lobbied when the number two at defense was a Raytheon lobbyist?

GIBBS: I think you saw in today's papers, you had experts that studied the issue of transparency and ethics, laud the steps that the president took yesterday to end gifts, to end lobbying, to strengthen ethics and openness, that that exceeds what any administration has previously done in the history of this country. That's what the president pledged in his campaign. And that's exactly what he did yesterday in signing these executive orders.

Those very same experts that lauded the greatest ethical standard ever administered to an executive branch also believes, as the president does, that any standard is not perfect. That a waiver of process that allows people to serve their country is necessary.

In the case of Mr. Lynn, he's somebody who obviously is superbly qualified, his experience going back to his Pentagon jobs during the Clinton administration make him uniquely qualified to do this. The president believes that, as these experts do, that a very limited number of waivers --

QUESTION: But he's not really (INAUDIBLE) revolving door, though.

GIBBS: Any of the people that work here, and myself, are prohibited, as the executive order states, from walking --

HENRY: Deputy defense secretary is a pretty big job. We're at war in two countries right now. So, he's a lobbyist, and now he's going to be deputy defense secretary.

GIBBS: Right, and if he ever leaves this administration, he'll never, as the president said, be able to lobby this administration as it relates to the work that it does for the length or entirety of that administration. Again, what the president did yesterday was institute the strongest ethical and transparency guidelines that any administration has lived under in the history of the country. Major?

MAJOR GARRETT, SENIOR WHITE HOUSE CORRESPONDENT, FOX NEWS CHANNEL: Two questions, Robert, one on the executive orders and one on the economy. Just so the American people have an understanding, if, for example, U.S. forces were to capture Osama bin Laden, or someone less well known but of operational significance, are they to understand, the American people, that only the Field Manual, and the Field Manual only, will be the interrogation method used to interrogate a target as valuable potentially as Osama bin Laden or someone of that operational significance?

Two, you said at the end of your remarks that the administration is contemplating future financial stability packages. Tim Geithner, on the Hill yesterday, led the finance committee to believe something may be in the works, a second TARP-type intervention in the financial system. Can this administration say one of its benchmarks for that is there will be no more Lehman Brothers, no large bank or financial institution will fail on its watch?

GIBBS: Well, as it relates to your first question. Let me get some guidance from Greg and members of the NSC (ph). Let me take your second question. And let me start by saying the president is very pleased that the finance committee voted out in a strong bipipartisan manner the nomination of Tim Geithner to head the Department of Treasury. Both Secretary-designate Geithner and Larry Summers outlined a series of principles that will go into the formulation of a larger financial stability package that the president will make decisions on shortly.

Those principles include ensuring that executive compensation is limited, so that the American taxpayer can feel confident that any money that's used as a part of a financial stability package doesn't go to line the pockets of a CEO. There's transparency in looking back at what we've done. And maybe more importantly, that any money that a financial institution receives, that that money is lent to the American people, so that families can borrow money to send their kid to college or buy a car.

Those are the principles that the economic team has been working with. Those are principles that were forwarded to the Senate last week to -- in preparation for the vote on the second $350 billion. Larger decisions on how exactly to use that money going forward are part of an ongoing process that the economic team is formulating so that the president can make some decisions on them.

GARRETT: Are you not prepared today to say that it would be an administration benchmark not to allow any major financial institution in this country to fail?

GIBBS: I'm prepared to say, and I'll reiterate what the president said throughout the campaign and transition, that the president will do everything possible to prevent a financial catastrophe, to ensure the working of the financial system, to get credit and lending moving again, to create or say we'll (ph) create 3 to 4 million jobs to get the economy moving again.