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U.S. Backs Reelected Afghan President; More Attacks in Pakistan; New York's Congressional Race

Aired November 02, 2009 - 14:00   ET

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

T.J. HOLMES, CNN ANCHOR: Well, a win is a win is a win, right? Even if the election is tainted, the runoff canceled and the legitimacy of the whole process now in question. At least in public, the White House is standing by the officially re-elected president of Afghanistan.

CNN's Ed Henry joins me live in just a moment with how Afghan politics impacts the war in general, and U.S. strategy in particular.

Also, we're going to be hearing from our friend and colleague, Michael Ware. There he is. He's in New York. He knows the leaders, the soldiers, the tribes, the insurgents. He knows it all inside and out, and also the prospects of peace post-election.

Well, you heard him live here last hour. The White House press secretary, Robert Gibbs, saying Americans should take heart that democracy has prevailed in Afghanistan. A fairly elected, widely accepted Afghan president has long been seen as a prime weapon in beating back the Taliban, but is Hamid Karzai the guy?

Well, our guy at the White House, Ed Henry, was in that press briefing.

Ed, I was listening. I know you all were trying and trying and trying to pin Robert Gibbs down and get him to call this man credible and legitimate. He didn't seem to want to go that far.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: He did not, T.J. You're right.

Robert Gibbs clearly was ducking the question as to whether or not Hamid Karzai is a credible partner. In fact, suggesting he's not. Instead, saying at one point, he's the legitimate leader of Afghanistan, given the fact that this process is moving forward.

But that's a far cry from what the White House has been laying out and saying it needs in recent days, saying it needs a credible partner as President Obama mulls sending up to 40,000 more U.S. troops to the war. Instead, saying he's the legitimate leader.

The other big question, of course, when is the president going to make this decision? You'll remember, the White House chief of staff, Rahm Emanuel, a couple of weeks back said that they would have to wait until after the November 7th runoff to see who the leader is going to be in Afghanistan to make this decision about troop levels. Well, I pressed Robert Gibbs on the fact, you now know who that leader is. It's President Karzai. When will the president make this decision?

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: We obviously now know who the government is going to be, so I think some of the conversations that I just alluded to can take place with who we know is going to lead the country. I think the decision still will be made in the coming weeks.

(END VIDEO CLIP)

HENRY: So, all Robert Gibbs would say there is that a decision will be made in coming weeks. He's been saying that for weeks, so it's really nothing new despite the fact that we have these new developments. And so, we're trying to find out what the president still needs to mull here before making this decision.

I can tell you, just in the last few moments, the House Republican leader, John Boehner, up on Capitol Hill, has put out a statement saying the last hurdle for the president to make a decision, figuring out who the leader in Afghanistan is, has been cleared. And John Boehner charging that the president is putting young men and women, U.S. troops, in danger every day he waits on this decision. So you see the pressure building -- T.J.

HOLMES: All right.

Ed Henry for us at the White House.

Ed, we appreciate you, as always.

HENRY: Thank you.

HOLMES: And a lot of people ask the question, why would anybody even be willing to take on the job of Afghan president? That's a pretty good question, some would say, but we also wonder how a second term for Karzai will sit with the people who voted for him or maybe those that didn't vote for him, or maybe those who didn't vote at all.

CNN's Michael Ware joins us now with some insights here.

Michael, hello to you.

Do you buy what the White House is selling here, essentially that they now have a legitimate, credible guy in place? He has now been elected fairly and whatever else they might say, and freely? Do you buy it, that he is now legitimate?

MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT: Well, I mean, I think that's a very flowery way for the White House to basically put, this is the only guy we've got, this is the only guy we were ever going to get, and this is the guy we're going to have to deal with. And, I mean, relations between Karzai and the Obama White House have been strained since the Obama administration came into power.

It's also the White House that forced Karzai a couple of weeks ago to accept the runoff in the first place. And I'm sure there was much pressure to get Abdullah to accept -- to now pull out of that runoff.

So, do they have a credible partner? No. They're not going to have that for quite some time. But the Afghan people will accept this result, because at the end of the day, it's the only one they're going to get.

And runoff or not, it's one bunch of warlords and their cronies versus another anyway. So, the result ultimately isn't that different from what the Afghans expected. It's just a different, more tortuous road.

HARRIS: Well, Michael, because of the way it went down, because you had this whole issue with the runoff, and then you had Abdullah drop out, and now it's been declared official, how much damage did Abdullah Abdullah do by dropping out? How much damage -- and it sounds like maybe listening to you that Karzai was going to be seen as illegitimate in some ways anyway. But how much damage did Abdullah do to him by dropping out of the runoff?

WARE: Well, yes, I think to have a runoff election obviously would have added at least some semblance of greater legitimacy to the mandate from the people that whoever the winner was would receive. But when you weigh out the costs financially of attempting a runoff like that, giving the timing and the logistics, and given that this is against the backdrop of violent Taliban opposition to this poll, in one sense Abdullah pulling out is the best thing for everyone, including Karzai. I mean, at least he's in power.

And to be honest, the Afghan people wouldn't have expected anything much different to this. I mean, we saw stories emerge in the last week or so that President Karzai's brother is on the CIA payroll. Well, to the Afghans, that would have been a case of, yes, and what's your point? They assume that.

So, to have Karzai return, Abdullah pull out, it's the best of a worst situation even for the Afghan people -- T.J.

HOLMES: And one last thing here. And Robert Gibbs talked about this, and you alluded to it a minute ago. And it sound like -- I mean, we sit here in the U.S., and we're watching what's happening over there and talking about the legitimacy of Karzai. But the people there, Robert Gibbs seems to think that they think -- that the Afghans think they have a legitimate leader in Karzai.

I mean, you've been there. You talk to these folks day in, day out. Is this, like you were saying, just a case of dance with the devil you've got?

WARE: Absolutely. I mean, at least the people know Karzai.

According to one of my colleagues at CNN, the running joke on the street was, well, at least if Karzai was thrown out of office, and new ones came in, their fear was that, well, Karzai's already filled his pockets with the money. You know, a return of Karzai would save us. Hopefully he wouldn't be as greedy as someone just coming in.

I mean, that's the kind of cynicism that people on the street see their government. So, really, the Afghan people are just going to go with the flow. They're going to make the most of it.

The real question -- you're going to have the Afghans come along, because they have very little choice -- how's the White House going to handle it? How is it going to repair its relationship with Karzai, and how is it going to establish a credible partner with him or, indeed, anyone when they haven't been able to do so until now?

We may have a result. We may have an accepted new president or return of the incumbent. But we're still a long way off from that credible partner that America so desperately seeks -- T.J.

HOLMES: Michael Ware, we appreciate your insights, as always. Appreciate you hopping in that chair for us. Thanks so much. We'll see you again soon, buddy.

WARE: To you as well.

HOLMES: Well, a lot of people remember the name Scott Ritter. That's the former U.N. weapons inspector who was right about the absence of WMDs in Iraq. Well, he has some pretty strong opinions about Afghanistan as well, also about Iran. He'll share those with our Rick Sanchez, live in the CNN NEWSROOM.

That's coming your way in about 50 minutes, 3:00 Eastern, right here.

Well, for the Pakistani military, the latest deadly insurgent attack hits very close to home. While troops battled militants near the Afghan border, a suicide bomber on a motorcycle hit Rawalpindi. That's home of military headquarters there. At least 35 people dead, dozens more hurt.

We'll get the latest from CNN's Reza Sayah in Islamabad.

(BEGIN VIDEOTAPE)

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): Police say the suicide attacker who targeted this bank in Rawalpindi knew that dozens of people lined up were civilians. According to investigators, the attacker approached his target on a motorcycle. The time of the attack no coincidence, say police, the first workday of the month when current and retired government workers line up at the bank to withdraw monthly salaries and pensions. Witnesses say several soldiers were among those in line.

Those soldiers were the likely target, say police, but dozens of civilians were killed in the blast, the latest in a wave of attacks that have terrorized Pakistanis, who don't know when and where militants will strike next. The attacks are killing civilians at an alarming rate.

Last week, a car bomb killed at least 100 in a market in Peshawar. It was Pakistan's deadliest attack in two years. All of the victims were civilians.

Days earlier, another car bomb in Peshawar blew up outside of a banquet hall. More than a dozen were injured.

Monday's suicide attack comes as the Army's ground offensive targeting the Taliban in South Waziristan enters its third week. Military officials say 80 percent of Pakistan's militant attacks are plotted in South Waziristan. The Army says it's making steady progress, but on Monday, it was clear that reported progress in South Waziristan has yet to yield peace in Pakistani cities.

Reza Sayah, CNN, Islamabad.

(END VIDEOTAPE)

HOLMES: Well, three months in now, and their families are beyond desperate. Three American hikers are still stuck in an Iranian prison, accused of illegally crossing the border from Iraq.

Brief flashes of hope like a promise of leniency from Iran's president have led pretty much nowhere, so the families are again speaking out. And they're trying now to humanize Shane, Sarah and Josh.

(BEGIN VIDEO CLIP)

ALEX FATTAL, BROTHER OF HIKER DETAINED BY IRAN: We want a phone call. We want to hear their voices. I mean, 94 days, and we haven't heard their voices. So, we would like some direct form of communication, where appealing as strongly as we can to please allow them to phone home. But more than anything, we're appealing for them to be released.

I mean, it's just very clear to us that our kids are harmless. We released those videos of my brother rapping and Josh, Shane and Sarah dancing around in the cinderblock building. And we feel like it's very clear that are kids had no intention of entering Iran, and are harmless and mean no ill will towards Iran.

(END VIDEO CLIP)

HOLMES: Well, on Thursday, a Swiss diplomat was able to visit with the hikers for about 40 minutes or so. And in a statement, he said they're in good physical shape.

Well, a tragic history, a triumphant homecoming. A poignant moment along New York's Hudson River this morning.

The USS New York came home, so to speak, on its maiden voyage to its namesake. The Navy's newest billion-dollar warship was constructed with more than seven tons of steel salvaged from the wreckage of the World Trade Center. The yet-to-be-commissioned ship was given a 21-gun salute as it fronted Ground Zero. It's open for public visits this week.

A Republican candidate drops out of an election race and supports, yes, a Democrat. Just one of several key contests happening tomorrow.

President Obama is not on any ballot, but should he be worried?

(COMMERCIAL BREAK)

HOLMES: Well, how do you feel about President Obama and his party? We'll get some answers tomorrow when some voters go to the polls in a few key elections. You can bet the president will be watching closely as well.

And what's going to be grabbing his attention, your attention, our attention? Well, the New Jersey's governor race. Incumbent Democrat Jon Corzine fending off challenges from Republican Chris Christie and Independent Chris Daggett.

Then in Virginia, another governor's race up for grabs. The Democrat, Creigh Deeds, currently trails the Republican there, Bob McDonnell, in the polls.

Then in New York -- this one's a bit intriguing -- the 23rd congressional district seat battle. A bizarre twist there that the Republican, Dede Scozzafava, you see in the middle -- she has dropped out, but she is now supporting the Democrat in the race, Bill Owens. The conservative candidate, Doug Hoffman, could reap a bonus from the shakeup.

CNN's Jim Acosta has the story.

(BEGIN VIDEOTAPE)

DEDE SCOZZAFAVA, DEBUNKED REPUBLICAN CONGRESSIONAL CANDIDATE: Just call me Dede.

JIM ACOSTA, CNN CORRESPONDENT (voice-over): It was like Halloween candy for conservatives. Dede Scozzafava, the embattled Republican candidate for Congress in upstate New York, didn't just drop out of the race, she was practically thrown under the party bus by a parade of GOP leaders in favor of Doug Hoffman, the self- described Conservative Party candidate.

DOUG HOFFMAN, CONGRESSIONAL CANDIDATE: We're fighting for our children and our grandchildren's future.

BOEHNER: But we're in the middle of, I think, of a political rebellion going on in America. And this rebellion are by a people who really have not been actively involved in the political process. And they don't really care whether you're a Democrat or a Republican.

ACOSTA: House Minority Leader John Boehner credits conservatives who protested President Obama's agenda at tea parties and town halls across the country for grabbing the GOP's attention. But Boehner worries whether some went over the top. BOEHNER: I'm a big believer of Ronald Reagan's 11th commandment. Never talk ill about another Republican.

JOHN KING, HOST, CNN'S "STATE OF THE UNION": That was not followed in this race.

BOEHNER: I know.

ACOSTA: Former Alaska Governor Sarah Palin was one of Scozzafava's biggest critics, saying on her Facebook page, there is no real difference between the Democrat and the Republican in this race. A pro-abortion rights and pro-stimulus Republican, Scozzafava said in a statement after dropping out, "I've been unable to effectively address many of the charges that have been made about my record."

The GOP split has given the Democrat in the race, Bill Owens, a fighting chance to win a district that's normally slam dunk for Republicans.

VALERIE JARRETT, WHITE HOUSE ADVISER: It's rather telling when the Republican Party forces out a moderate Republican and it says, I think, a great deal about where the Republican Party leadership is right now. I think it's becoming more and more extreme and more and more marginalized.

ACOSTA: Tell that to Rush Limbaugh.

RUSH LIMBAUGH, CONSERVATIVE RADIO SHOW HOST: The Republican Party needs to learn something. If it goes country club blueblood moderate, it's going to lose. If it goes Reagan conservative and commits to it, it's going to win landslides.

ACOSTA (on camera): The big question heading into Election Day is whether this conservative gamble backfires in what's become a race that's too close to call. Dede Scozzafava says she's now backing the Democrat in that contest and she's urging her supporters to do the same.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HOLMES: Well, it wasn't too terribly long ago that people were celebrating Maynard Jackson being the first black to be elected mayor of a major southern city. It was Atlanta. Well, there hasn't been another white mayor since, but someone is hoping to change that. That's among some of the races we're watching tomorrow as well. In Atlanta, Councilwoman Mary Norwood, she's seeking to become the city's first white mayor since 1972.

Return now to a different graphic about Houston here. But another woman hoping to make her mark in Houston, Annise Parker hopes to become Houston's first openly gay mayor.

Just a couple of mayoral races we'll have our eyes on tomorrow as well. Also, tomorrow's election could send crucial political messages to the left and to the right and could lay the groundwork for next year's midterms.

Josh Levs looking at some other races and explaining why there's so much interest all over the country. A lot of races happening tomorrow.

Hello, Josh.

JOSH LEVS, CNN CORRESPONDENT: Yes, there are. Hey there, T.J. And it is really interesting to see how this plays out. We've got our crack team of researchers who have put together some fun here just focusing on some of the major elections tomorrow, including the ones you were just talking about.

I want to point to something. This is an article that a lot of people are taking a look at today from The Associated Press that talks about shedding light on U.S. politics, what tomorrow will mean.

Let's go to this graphic. I want everyone to see what they're saying will be key questions that some on both sides of the aisle will get some answers to tomorrow.

Will President Obama's supporters from last year turn out, particularly in areas where he's been campaigning in recent weeks? Also, last year, Independents turned out largely for President Obama. Will they be sticking with Democrats now, or are those a constituency lost largely to Democrats now?

Also, as we were just hearing about in a way, there have been some fissures within the GOP. Are we going to see a coming together of the GOP tomorrow?

So, while overall there are not many Americans who will actually be voting, these are some important messages people will be getting.

We were talking about how many races there are. Let's go to this next graphic. I want everyone to see how many mayoral races we've got, because that's pretty big in and of itself.

You've got 380 cities representing a population of over 39 million. And here's the next one. We show you some of the major cities that have these tomorrow.

Some of the biggest cities with the biggest populations that will be having these races: New York, Houston, Detroit, Boston, Seattle. You can see the full list there.

We've got one more screen for you. Let's jump over to that and we'll end on that one.

And what this does is it shows you a few of the interesting ballot issues tomorrow. You've got a same-sex marriage one in Maine. Also, medical marijuana, a question about that in Maine. And domestic partnerships in Washington. A few of the ballot initiatives we'll be watching. And all of it will be updated throughout the night, right here on the screen behind me, CNNPolitics.com. Just go to CNN.com, click on "Politics."

T.J., the Ticker has people working through the night tomorrow. We're going to keep everyone updated on all these races, all the ballot initiatives, as the results come in -- T.J.

HOLMES: Another election night. Nobody doesn't like CNN.

LEVS: Another one.

HOLMES: We appreciate you so much. Thanks, Josh.

LEVS: Thanks, T.J.

HOLMES: Going to share with you some of our top stories here now.

And they're saying that it could have been a whole lot worse up in Michigan this morning. One person though is hospitalized after a string of explosions and a fire at a welding supply plant. The firefighters say it all began when a tank exploded. The plant, roughly 50 miles north of Detroit.

Also sadly, no longer a search and rescue mission. Now it's more of a recovery effort off the southern California coast after Thursday's midair collision between a Coast Guard plane and a Marine helicopter. All nine people from both aircraft are now presumed dead. Investigators hoping to find debris and the cockpit recorders to help them figure out what caused that crash.

Also, some good news out of the Bay area, very good news. The Bay Bridge back in business.

The bridge has reopened just a few hours ago. Traffic was halted last Tuesday after some steel rods and a crossbeam fell. Nobody injured though. Transportation officials, of course now, keeping a very close eye on that bridge.

Well, a lot of small business owners, thousands of them, really, now asking the question, now what? As the lender that keeps them afloat finds itself sinking.

(COMMERCIAL BREAK)

(WEATHER REPORT)

HOLMES: Well, folks, you know the symptoms out there -- the sneezing, the aching, the coughing. But when some people get the H1N1 flu, or the regular seasonal flu, they can't afford to stay home.

So what does that mean for you and I that has to interact with these sick folks?

(COMMERCIAL BREAK) HOLMES: These H1N1 cases keep growing, and that has people flooding doctors' offices across the country. H1N1 now considered widespread in 48 states. The number of people reporting symptoms now is higher than what we usually see at the peak of the regular seasonal flu.

Now, more of the H1N1 vaccine is on the way, we're told. Another 10 million doses are expected to reach health care providers this week. But it's still short of what was expected.

So, suppose you do, unfortunately, get the H1N1 flu. But you don't necessarily have sick leave. What do you do? What can your company do to protect you as well and halt the spread of H1N1? Well, Andrew Cataldo is an attorney who helps companies assess the risks and keep their workers safe.

Good to see you. We appreciate you being here. This is a tricky one now. A couple of things here. Nobody -- I mean, it's in the company's best interest to tell an employee, "Go home, don't come in here and get everybody else sick." And then they'll have to be out.

ANDREW CATALDO, ATTORNEY, MCGUIRE WOODS LLP: No, that's right. The day of being a hero by coming in sick, those days are over. The message now needs to be, you're a hero if you're sick and you stay home. So, please, don't come to work.

HOLMES: Has H1N1 -- has this really changed things? We get the flu season every single year, but so much attention focused on H1N1, are you seeing that companies, employees, employers and bosses are viewing sick leave a little differently these days?

CATALDO: I think -- on the heels of avian flu and given the unprecedented level you just spoke about with doctor's visits and hospitalizations, I think employers are very wary of the fact that they could have very high absenteeism this year. And that's going to cause operational hardship for them, could cause economic hardship for them, and it could cause economic hardship for the people who have to take off work if they don't have sick pay.

HOLMES: All right. What should somebody do, then? I mean, nobody wants to get sick. You don't want to get anybody else sick. But some people just don't have sick leave. Economic times are tough. You can't give up that paycheck. What do you say to people trying to balance that out?

CATALDO: If you're an employer, what you need to do is do all you can to protect people, because employers have a duty under the law to protect people even if an emergency. That's why you do fire drills here at CNN. If you have customers come on your property, you need to protect your customers to the extent you can. That's why when you go to a movie theater, they remind you every time you go that in the case of an emergency, follow the lights on the floor and exit the exit signs.

So, employers have to fulfill their legal duties. But there's a host of things they can be doing now. If they don't have a plan, they need to implement one. If they do have a plan, they should be practicing it.

And those are, really, right now around the lines of infection control. Making sure people understand what should they do. Stay three feet away from other people. Make sure you wash your hands. Make sure you have plenty of hand sanitizer everywhere. At my firm, we've stepped up sanitation procedures so that after meetings, all the tables and telephones and conference chairs are all wiped down with sanitizers. Even our elevator banks are being wiped down on an accelerated basis to prevent the spread of the virus.

HOLMES: Something else here you hit on. Alot of people think about their rainy-day funds, and you need to think about a sick fund essentially, and not just the employees but the employers. Essentially put some money away in case you have to be out of work or, in case of the employers, you're missing productivity?

CATALDO: That's right. Employers need to be thinking, "What would I do if 80 percent or 30 percent of my people took an extra one- week vacation and it wasn't scheduled? How am I going to run the business and what's the economic impact?"

On the employee side, people need to realize that unless their employer has liberalized and loosened up sick pay and made more flexible-type of policies for that, there may come a time when they run out of sick pay. Then the question is, "What do I do and have I saved up enough? Have I thought about the economic impact to me of what might happen if I got sick?"

And a good thing to be doing, even now, is to do the best you can to prevent yourself from getting sick. And so assume, for example, that everybody you talk to is asymptomatic and is about to get the disease in a day. So, you and I are chatting now, we're closer than three feet. But the truth is, you may be sick tomorrow and I may be sick tomorrow. We've just infected each other.

So, this is not a disease you get from eating pork...

HOLMES: Of course, yes.

CATALDO: You get it from human contact and touching surfaces. Break rooms, coffee rooms, door handles, you name it, that other sick people have touched.

HOLMES: We'll keep in mind to keep the interview chairs a little farther than three feet.

(CROSSTALK)

HOLMES: Andrew Cataldo, again, we certainly appreciate you, and a good reminder for folks of what they should be doing right now to prepare and try not to get sick, though, folks. Appreciate you for coming by.

CATALDO: Thank you.

HOLMES: Well, Sir Elton John, he actually got sick. It wasn't H1N1, though. He's on the mend, we're told, recovering from a bad case of the flu. Again, don't know if it was H1N1. No one said that or anything. But also, a minor case of E. Coli infection. The singer was forced to cancel many of the dates for his "Face to Face" tour in the UK as well as the U.S., but Sir Elton intends to rejoin the tour with piano man, Billy Joel, later this month.

They are searching for a cop killer in Seattle. The police department's mobilized, and they're mad. A veteran officer, Tim Brenten, was shot in the head Saturday night. A drive-by, it was, and the killer pulled up next to his car and just opened fire. A second officer also wounded. The police department is calling this an assassination, a hit on law enforcement. But they're also calling it a random crime. The mayor vows the city will not arrest (sic) on this one.

(BEGIN VIDEO CLIP)

MAYOR GREG NICKELS, SEATTLE: This was the first intentional homicide of a Seattle police officer since 1994. The killing of someone who protects us, who protects our public safety, who protects our communities is universally condemned.

(END VIDEO CLIP)

HOLMES: Officer Brenten was married and the father of two young children.

Also, six decomposing bodies found at a Cleveland home and now police have to figure out who the women are. The gruesome discovery coming as they tried to serve a warrant on a convicted sex offender late last week. He is now in custody but hasn't been charged with any of the deaths yet. At least five had been ruled strangulations. Police are looking at missing persons cases in the hopes of making some IDs.

It's a name you might not know, but you've given them your money, a whole lot of it. So, why are they now filing for bankruptcy? The thousands of businesses that rely on them really want an answer to that question.

(COMMERCIAL BREAK)

HOLMES: Top stories we're keeping an eye on. Clarification from Hillary Clinton in Morocco today. The Secretary of State says she was trying to offer positive reinforcement when she praised the decision by Israel to curb but not halt in settlements in Palestinian territory. Arab states were alarmed, but Clinton says U.S. policy has not changed, and Israeli policy still falls far short of expectations.

Also, a pretty weighty tribute to President Clinton in Kosovo. Check it out. Ethnic Albanians in the former Serbian province have just unveiled an 11-foot statue of the forty-second U.S. president. It was March of '99 when Mr. Clinton unleashed NATO bombs on Yugoslav forces as they were trying to crush Kosovo independents. The nation finally broke from Serbia last year. And maybe not quite easy street, but Ford is back on the road to profitability. The only U.S. carmaker not to take a detour into bankruptcy this year says it earned a third-quarter profit of $1 billion or so. Partial credit goes to the Cash for Clunkers program.

And issue number one now, the economy and President Obama preaching patience amid a financially uncertain future. The president huddled with his economic recovery advisory board just a few hours ago. The president says he wants to push forward with new models of economic growth instead of repeating the financial mistakes of the past, like the debt-driven expansion that led to the current recession. The president says the economy is now on the right track but warned says more jobs -- job losses -- could be coming.

It's one of the biggest lenders to small- and medium-sized businesses. Now it has filed for bankruptcy. For more on what that means, let's check in with CNNmoney.com's Poppy Harlow. She's in New York for us. And Poppy, a lot of people don't know these little letters, CIT. Don't know this particular group. Tell us what they're all about.

POPPY HARLOW, CNNMONEY.COM: Yes, they don't know it because they don't have day-to-day interaction with this company. Folks, this is a major, major lender to small- and medium-sized businesses across the country. It allows a lot of the goods to get on the shelves of the stores so that you can buy them, helping fund the day-to-day operations, especially of a number of retailers.

Just a little extra animation for you there. This is the fifth- largest bankruptcy in U.S. history. Folks, take a look at why this matters. You've got a huge business lender. They've got a million businesses that are their customers across 30 different industries. CIT says all in 90 million employees work at the businesses that use its loan.

Here's an example you'll understand. Dunkin' Donuts, who knew this? But you've probably seen more and more popping up in your neighborhood lately. That company decided to expand greatly a few years ago. They went to CIT, T.J., to get the loans for all that property, that commercial real estate so they can expand out through those franchises. That's just one example.

What we're hearing from CIT, they say, listen, despite this reorganization, this bankruptcy, we will be business as usual. We will keep lending to folks. I should note, though, the lending that CIT has done for businesses has really fallen dramatically over the last year. So, it's going to be interesting to see how this really plays out and if things continue as normal. T.J.

HOLMES: OK. Bankruptcy, bad. So, why are some saying this might be a good thing?

HARLOW: Right. It's a great question. Some folks argue -- and I think this argument had some credence -- this is finally allowing the capitalist system to work. CIT went to the U.S. government for a second bailout in July. They were rejected. This is a company that got $2.3 billion in U.S. taxpayer money under T.A.R.P.

The downside of this, taxpayers aren't going to get the money back. The Treasury's saying any recovery will be very minimal. Bottom line, taxpayers lose out on this one. The government chose not to step in and give them another bailout, T.J. And that's them saying, the system can handle this. That's what we're going to want to watch very closely when it comes to CIT. T.J.

HOLMES: All right. Poppy Harlow, we appreciate you as always keeping an eye on things. Thank you. We'll see you again soon.

Some saying maybe it's time for a sequel. Maybe you could call it "Coach Carter II: Back to Richmond High." The school made him famous and right now, it needs some of that old magic back again.

(COMMERCIAL BREAK)

HOLMES: It's been just over a week now since a 15-year-old girl was gang-raped outside her homecoming dance at Richmond High in northern California. The principal says no parents were there, and he points out that two other high schools nearby did have parents at their homecoming dances and had no problems. Also, we learned the school courtyard where the rape took place now has something that wasn't there on October 24th. Lights. Crews installed a bank of them over the weekend.

So, you try to get parents more involved, you light up those dark corners. Those are ways to push forward at Richmond High. And maybe you get a little old school as well. The old school basketball coach who put Richmond in the spotlight for some of the right reasons made a promise Friday right here on CNN NEWSROOM. Coach Carter was talking to Kyra Phillips and Richmond High's senior class president.

(BEGIN VIDEO CLIP)

KEN CARTER, FORMER BASKETBALL COACH: I'm going to return back to Richmond High, and we're going to work something out. I'm going to meet with some community leaders and -- because that was my old high school. And I had a great, great career there at Richmond High School. And my academic career there was just simply outstanding. Our teachers loved us and cared about us, and were real strict with us.

And I want that to happen again. Because the kids need the discipline....

(END VIDEO CLIP)

HOLMES: Well, you heard that here on Friday. Coach Carter went back, just like he said he would. Here now, CNN's Dan Simon.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): He's the coach who made Richmond High School a symbol of positive change and he's crushed to see it now linked to an unspeakable crime. KEN CARTER, FORMER BASKETBALL COACH: It's a little surreal. And it leaves a bad taste in my mouth. Because I love this school and I love this city.

SIMON: Coach Carter is a celebrity here and he wants to use his fame to help the school heal.

(on camera): What aspect of the case to you was the most mind boggling?

CARTER: Just like everybody else, when you have x number of people witnessing this and no one called 911. And it's so easy to do.

SIMON: A few years ago Ken Carter became the inspiration for a hit movie starting Samuel L. Jackson.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Teachers ain't supposed to touch students.

SAMUEL L. JACKSON, ACTOR: I'm not a teacher, I'm the new basketball coach.

(END VIDEO CLIP)

SIMON: The film chronicled Carter's 1999 season as basketball coach. He forfeited games and locked his players out of the gym because of poor academic performance. The kids got the message, grades went up and the team became a power house. Carter says this is what he told his players on the first day.

CARTER: Sat in the very front row of every single class and to be saying yes, ma'am and yes, sir to all teachers, and to be extreme gentlemen to the young ladies on campus. Because that's what we did. That was our standard.

SIMON: Carter left Richmond in 2002. He's now working to open his own private school in Texas. But the homecoming rape has brought him home to Richmond with a different kind of message.

CARTER: I don't know if each one of males had sisters. But I knew -- I know each one of them had a mom, they had a mother. Now you look at the situation, would they like that to happen to somebody in their family? I'm sure nobody.

SIMON: During a school forum, some seem to blame the incident on the lack of cameras and security.

UNIDENTIFIED FEMALE: Why do some schools get everything, why do some schools have new camera systems? How many schools in our district have a fence?

SIMON: Carter says their anger, while understandable, is misplaced.

CARTER: You could have as many cameras around here as possible. To stop something in this community, you're going to need the community. When the community says I'm tired of this, you know, then a change will be made.

SIMON: For now Carter is trying to put together a charity basketball game, hopefully he says with Samuel L. Jackson and other actors from the movie. All the money would to the victim and her family.

CARTER: I don't know what the family's financial situation is. But when something like this happens, I'm sure the parents are not able to work and things of that nature.

SIMON: It's a fist step in a long healing process for the 15- year-old girl and the high school Carter helped put on the map.

Dan Simon, CNN, Richmond, California.

(END VIDEOTAPE)

HOLMES: Coach Carter's entire interview with Kyra Phillips as well as his words to the senior class president are on Kyra's blog. You can go to CNN.com/kyra.

Sanchez, my man, what's going on back there?

RICK SANCHEZ, CNN ANCHOR: I'm arguing with my executive producer, as usual.

HOLMES: Oh, not Angie, no!

SANCHEZ: That's what we do. Somebody's got to be right, and it's never me.

(LAUGHTER)

HOLMES: So, what does she tell you you have to tease right now?

SANCHEZ: I can't. I can't. I can't disclose what we were arguing about. But I will tell you this -- did you see her fist? Did you see her fist?

I will tell you it's about Rush Limbaugh. I'll leave it there, nothing else. I'll just say Rush Limbaugh.

Hey, he's a Republican, obviously, or a conservative. And we're going to talk a little bit about Rush's influence up in that New York race you mentioned earlier in your show. We think that could be a real harbinger of things to come for the Republican and the Democratic party.

But this is the big story we're going to follow. We follow the money -- if a congressman or senator gets money from one particular group, is he more apt to then vote for that particular group? How about is if it's a couple million dollars his wife is getting for a certain board? This is what we're talking about with Democratic senator Evan Bayh. And we're going to put both parts of the story out there. We're going to follow the money.

I'm going to keep doing this everyday. Because I'll tell you, it just seems like to me the rules the rest of us have to follow, those guys up there in Washington don't follow. But you decide. We'll let you watch it for yourself.

HOLMES: All right. We will be watching. Rick, we appreciate it. Y'all be nice back there. We'll see you again in a few minutes.

A lot of people would say, you think you've heard it all before. Well, check this one out. We've got a real doozie for you. A Wisconsin woman calls 911 Halloween night to report a drunk driver. Take a listen to it, though.

(BEGIN AUDIO CLIP)

911 DISPATCHER: Clark County 911.

MARY M. SUEY, CALLER: Somebody's really drunk driving down Granton Road.

911 DISPATCHER: OK, where on Granton Road?

STREY: Ah, there's only, like, six miles drive through Granton and Nellsville. And...

911 DISPATCHER: Which way are they going?

STREY: They are going, um...

911 DISPATCHER: Towards Granton or towards Nellsville?

STREY: Towards Granton.

911 DISPATCHER: OK. You behind them or...

STREY: No, I am them.

911 DISPATCHER: You am them?

STREY: Yes, I am them.

911 DISPATCHER: OK, so you want to call in and report that you're driving drunk?

STREY: Yes.

(END AUDIO CLIP)

HOLMES: Yes, there she is, folks. Story kind of slurs for itself, doesn't it? The dispatcher went on to ask 49-year-old Mary Strey, who had apparently gone astray that night, to pull over and turn on her flashers. She did. Police say her blood alcohol level was .17. Legal limit usually .08. She was drunk.

(COMMERCIAL BREAK) HOLMES: It used to be one of the most imposing structures in the world. Every stone and brick filled with Cold War symbolism. The Berlin Wall, built by communist East Germany in '61, torn down 20 years ago this month.

Now, Germans are marking the anniversary, but is there anything left to mark? Our Fred Pletigen finds out.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN CORRESPONDENT (on camera): You know, one of the things that people who come here often ask me is, where was the Berlin Wall? That's true, you really don't see much of it anymore. However, you can still find remnants in you have the right guide.

Today I have Andreas, who offers bike tours through Berlin to see where the Berlin Wall used to be. That's what we're going to do now, right?

ANDREAS, OFFERS BIKE TOURS OF BERLIN: Yes.

PLEITGEN: Let's go.

(voice-over): It was nearly 100 miles long and heavily fortified. For nearly three decades the Berlin Wall divided the city and served as a symbol of a division of east and west. But now, you have to look hard to even notice what's left.

(on camera): This is something that you don't find very often in Berlin anymore; this is an original piece of the Berlin Wall hidden here right next to these railway tracks.

As you can see it's not in a very good state. You have the metal bars coming out of the concrete and plants growing all over it. Certainly it doesn't look good. But this is one of the few pieces still left.

(voice-over): After the wall came down on November 9, 1989, people began chipping away, turning the iron curtain into souvenirs.

Our bike trip is like a ride back into time. Along streets divided on August 13, 1961, when East Germany closed the borders to West Berlin where people risked their lives jumping to freedom and even border guards made a run for it.

Thousands fled communism, hundreds died trying. As the regime kept refining and perfecting the walls' fortifications.

This is one of the few places in Berlin where you can see the wall the way it used to look. This is what you would have seen if you would have looked at it from the west side of Berlin; the actual wall is only part of it. Behind it you can see further barriers; you have a sand pit and a second wall.

We have another photo here which is from the '60s or '70s. As you can see, this is where the wall used to go. And right here, this house, you can still see it, it's over there.

Andreas was one of the first East Germans to cross over when the checkpoint were own November 9, 1989. Trying to flee in Berlin, he says, was all about impossible.

"There were fences," he says, "signal fences, guard dogs, water obstacles, anything to stop people from fleeing. And the guards had shoot to kill orders" at one of the fiercest borders ever devised by man.

(on camera): In most parts of Berlin, however, all you can see is those little bricks right here, that's all you see of the Berlin Wall. Really almost nothing at all, it's almost completely disappeared from the town.

(voice-over): Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

HOLMES: All right. That's it for me. Time for Rick Sanchez at 3:00 p.m. in the NEWSROOM. Rick, it's all yours.