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Obama to Receive Preliminary Report on Flight 253 Investigation; Times Square Prepares for New Year's Eve; Security Watch Focus on Yemen

Aired December 31, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Here are some of the other stories that we're watching right now. The charity "Feed the Children" is suing its former president for allegedly taking bribes and using his influence to get jobs for his family members. Larry Jones was fired in November. He denies the charges. Jones has filed a wrongful termination suit against the charity he helped found 30 years ago.

Police in Selma, California, looking for whoever dumped nearly a dozen puppies in a dumpster. As you can see the 11 pups are all doing fine now. Darn cute, aren't they? Someone did find them after hearing their whimpers. The 4-week-old puppies will be available for adoption in a few weeks after they get fixed and fitted with their microchips.

A New York City landmark calls it quits tonight. New Year's Eve marks the last meal service for the famed Tavern on the Green. The 75-year-old Central Park spot was a big draw for tourists, but that was not enough to keep it out of bankruptcy court. The interior decorations will be sold off to pay the debt. The name "Tavern on the Green" also for sale.

The attempted bombing of Northwest Flight 253, where did the system fail and why wasn't the attack prevented completely? Well, today President Obama gets some of the answers he demanded. A preliminary intelligence report is due on his desk.

Meanwhile, there are new details about clues that were apparently missed or even ignored. As early as August, U.S. intelligence learned extremists in Yemen were discussing operations. They collected information on the operation even had the partial name "Umar Farouk."

Also today, the suspect, Umar Farouk Abdulmutallab, is now the focus of a new question. Dutch investigators want to know whether the explosive material was brought into Amsterdam's airport by someone else.

We want to try to fill in some of the details now on all of these headlines. Rosemary Church is joining us live from our NEWSROOM with a little bit more this morning.

Rosemary, let's begin with that preliminary report that we've been talking about and we know that the president is expecting it on his desk today. ROSEMARY CHURCH, CNN CORRESPONDENT: Yes, Heidi, that, as we've said, lands on his desk today, will outline the failures in intelligence in trying to join the dots here. There are a number of agencies under the spotlight, the CIA, the National Security Agency and the State Department. Why were they unable to pull together some of the information that was available?

As you mentioned, there were knows intercepts from Yemen that we learned about through the NSA, but somehow that was not connected with the information that was given by the terror suspect's father, who went directly to the U.S. Embassy in Nigeria and told them that his own son posed a threat, that he had been radicalized. But this information they were unable to pull together.

Now, the big thing is what happens next and what is done with that. There was so much that wasn't followed through on this.

COLLINS: Yes, no question. In fact, the big one becomes how to put a system, some type of system in place that prevents all of this from happening again, because we talked so much about some sort of global database that will help all countries keep their eye out for potential terror suspects.

CHURCH: Well, indeed. I mean they thought they did have a system in place. Since 9/11 they had the counterterrorism network, that was supposed to pull all of this together, join the dots, but that has failed.

Now, the situation here is pretty hard. When you consider all of the information that's coming in, these agencies, of course, turning on each other, pointing the fingers at each other saying the NSA had these intercepts, why did they not do the right thing and pass that on.

But in isolation, all this information didn't seem critical enough, even the piece of information coming from the terror suspect's father. But when you do draw it together, then you can form this picture. But it has to be remembered, at the end here, this attempt was foiled.

COLLINS: Yes, exactly, very good point. But still very, very scary because of his access through security and to the aircraft itself.

When the president gets this report, Rosemary, what's he likely to do first once he has it?

CHURCH: Well, of course, he is under incredible pressure from the republicans. They perceive him as having dropped the counterterrorism ball here, so he has to move.

Now, we're not likely to ever see the details of this report. It is a preliminary report. But he has to move quickly to seem to be doing something with it. There will be changes made presumably within these agencies. We may not even hear from him today regarding this report. He and his administration will need time to absorb the direction which they will need to take. So it is a difficult task for the president, yet another one landing on his desk this day.

COLLINS: Yes, yes, I doubt that we'll hear from him either.

All right, Rosemary Church, I do appreciate it. Thank you.

Of course, it isn't known yet how a suicide bomber got through security into a U.S. military base in eastern Afghanistan either. There's also no official word yet on the eight Americans killed, but it is believed CIA employees are among those victims. The bomber walked into a gym at the Ford Operating Base Chapman before detonating the suicide vest. At least six other Americans were wounded in the blast. The Taliban have claimed responsibility.

It's an e-mail none of us would ever want to open. The message, beware of a possible terrorist attack tonight. This morning, Americans on Indonesia's resort island of Bali are waking up to that warning. The U.S. Embassy in Jakarta says there is an indication of a terror strike. Over the last several years Islamic militants have carried out a number of attacks in Bali and elsewhere in Indonesia.

Security, of course, will be a top priority tonight as millions of people gather in New York's Times Square to ring in 2010, quite a tradition there. CNN's senior correspondent Allan Chernoff is live this morning from Times Square.

Hi there, Allan.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Hi, Heidi.

Certainly the security is going to be very, very tight, and it's actually been something the police have been working on for days. They start off with what they call their nexus intelligence, which is essentially meeting with people who work in the restaurants and hotels here in Times Square, trying to find out if they know of any suspicious activity.

They have actually sealed off manhole covers. They will be getting rid of all the garbage cans here. They'll have radiation detectors. A whole series of things they're doing to make sure that Times Square is as secure as possible. And, of course, there will be no traffic, that will be starting at 3:00 -- Heidi.

COLLINS: So for those people who plan to go, because as we have said, there could be a million people there or so, how early do you think you have to arrive to get in, get in place?

CHERNOFF: Well, given the weather, that it's snowing now and it may rain a little later, I'd say that people who are still determined to show up here, they can probably come a little bit later than on other years. Well, maybe that means by 4:00.

I'm talking about if you want to be certain that you will be actually in Times Square, because what the police do is they put people into pens. You see those metal guards right behind me. They create these pens, 2,500 into each pen and they'll start doing that mid-afternoon.

By 5:00, they're pretty much filled up around here. That's been historically the pattern. They start moving uptown. They move a little bit downtown, but if you want to be anywhere near where I'm standing, I'd say really 4:00 is essentially the deadline.

COLLINS: Yes, and wear comfortable shoes and boots that keep your feet dry. Because we have some of the estimates as big as a million, but you mentioned the weather and all of that and I'm not sure how accurate those numbers will be. Anybody talking about that yet, Allan?

CHERNOFF: Heidi, you know, a million is the number that the Times Square Alliance puts out, that's the organization that's in charge of the celebration here.

COLLINS: Yes, of course.

CHERNOFF: Let's be truthful here, OK.

All right, 2,500 per pen, four pens per block, OK. That's 10,000 there. Then you basically have for each block you've got Broadway and you've got 7th Avenue, OK, so we're talking 20,000 per block.

Let's say we expand Times Square from going down from 59th all the way to 39th street -- that's 20 block -- that's 400,000 people. Let's add, say, another 100,000 of media, performers, police, et cetera, et cetera, that gets to us half a million.

Yes, you'll have some people on the side streets. That's not really where people want to be. You cannot see the ball from there. Maybe 600,000. I think a million, honestly, is an exaggeration, but it sounds good.

Maybe in the old days we had a million when everyone was crammed in, but now with those pens, there's a lot of space between the pens. If you have a press pass, if you're one of the performers, if you're a police officer, there is lots of room to walk through. It's amazing. I was here two years ago and the place is packed, but there's lots of room to walk through if you have credentials.

You don't have a million people in Times Square, no way.

COLLINS: All right, Allan, very good. Hey, you know you can watch it on TV right here on CNN, by the way.

Allan Chernoff, thanks so much. Appreciate it, live from Times Square this morning.

Of course, here in the NEWSROOM we are also counting down the final hours of 2009, but they're already celebrating in a number of places across the world. Our Josh Levs ready to take us to one city that's ringing in the New Year right now. JOSH LEVS, CNN CORRESPONDENT: Literally ringing it in.

Hey there, Heidi. I'm about to see this for the first time with you. Let's go straight to Seoul, South Korea.

Annual tradition there in Seoul, they're ringing this bell. You can see this huge crowd that turned out for it. It's a nation of 48 million people, so that's the centerpiece of what they do over there.

Also, quickly let's go back to Australia. I want to show you a little more of what we're seeing in the city that's calling itself "The New Year's Capital of the World." We're getting a lot of questions from viewers about this. Interesting fact about what's going on in Sydney today there. This was the most complicated bridge effect for New Year's Eve in Sydney. It took a dozen computers just to send out the signals, 10,000 signals to make all those happen.

Also, I'm going to fulfill a promise. I mentioned about ten minutes ago, I'll let you know how you can send us your news story or let's just call it your year, your 2009 in 30 seconds or less. It's at ireport.com. Take a look. That's how you get in touch with me CNN.com/Josh or Facebook and Twitter, JoshLevsCNN.

But we do have a piece of video. Let's go to that now.

There you go. That's all it takes. You send your best photos or put together 30 seconds or less and we will feature it on ireport.com. It might be right here on TV, Heidi. So I'll be camped out here in the NEWSROOM throughout the day showing you some of the best we get from our iReporters in addition to some of the best celebrations all over the world.

COLLINS: Yes, you're going to have your first new year with your brand new baby, the one you delivered on your own. We like that story a lot for the year.

LEVS: We'll talk about that soon.

COLLINS: Josh, thank you.

Coming up next, of course, we want to hear the weather forecast for new year's eve too. We're back in a moment.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

COLLINS: Turning now to CNN's "Security Watch." Yemeni forces have carried out a raid on a suspected al Qaeda strong hold arresting at least one militant. It happened in the western part of the country. An al Qaeda group in Yemen claimed responsibility, as you know, for the failed attempt to blow up a U.S.-bound jet on Christmas day. A top Yemeni official says forces will continue strikes against al Qaeda targets until the terror group is eliminated. The Yemeni government has vowed to get rid of the terrorist groups inside its borders, but how much help will it need in doing so? Our next guest just came back from Yemen four months ago. Over the years, he has spoken with several jihadists. Fawaz Gerges is a professor at the London School of Economics and author of "Far Enemy: Why Jihad Went Global."

Fawaz, thanks for being with us. Tell us from your travels what Yemen is like right now. What are some of the struggles the people face?

FAWAZ GERGES, PROFESSOR, LONDON SCHOOL OF ECONOMICS: Heidi, Yemen is a very fragile society. It has basically it is a failing state and also it's a collapsed economy. Let me just give you an idea about what we're talking about. You have over -- more than 40 percent of the 28 million Yemenis unemployed. That is almost 45 percent. More than 50 percent of Yemenis live in absolute poverty. Every year I go to Yemen, I find a deteriorating security situation and declining social and economic situation. I mean the people are suffering a great deal. And as you know, Heidi, al Qaeda is a parasite, is a parasite that is nourished on chaos.

COLLINS: Sure, they find places like this to go.

GERGES: Absolutely. So what al Qaeda has been trying to do in the last two or three years as a result of the deteriorating security situation and declining social and economic conditions is to exploit those terrible conditions and submerge itself with local conflicts in Yemen and try to challenge the legitimacy and the authority of the Yemeni government. So really the crisis al Qaeda in Yemen is basically a by-product of horrible conditions on the ground and in particular of absolute poverty and also pervasive corruption as well.

COLLINS: Yes and you've also had a chance, as we've said in the intro coming to you, to speak with many jihadists over years. Not a lot of people get to do that, of course. How organized are they?

GERGES: Well, I mean the reason why they are so organized, Heidi, because al Qaeda in particular in the last one year and a half has been trying now to integrate itself into local conflicts in Yemen. What do I mean by local conflicts in Yemen? There are multiple many wars taking place in Yemen, Heidi. In the north, there is a major civil war between a powerful tribe and the government. More than a thousand people have been killed as a result of this civil war and this civil war has brought both Saudi Arabia and Iran into the conflict.

COLLINS: Well yeah, and that's exactly what I want to talk to you about in just a second, Saudi Arabia and the role that they could or should have in all of this. But first I want to talk to you about the Yemeni foreign minister. I interviewed him yesterday on the show and we were talking about what the government can do, his government can do, to fight al Qaeda. Listen to what he said when we talked about international support and what the U.S. has already done.

(BEGIN VIDEO CLIP) COLLINS: What happened with the 67, 9 believe it was according to the Pentagon, $67 million that the United States gave just this year to your country? How was that spent?

ABU BAKR AL-QIRBI, YEMENI FOREIGN MINISTER (on phone): Well, this goes to training and providing equipment for our counterterrorism units. It sounds a large amount, but it is peanuts really when you look at the figures spent on countering terrorism by the U.S. or by other countries.

(END VIDEO CLIP)

COLLINS: Well as you heard, he says that it's peanuts, the $67 million, but at what point does the Yemeni government have to find a way to protect its homeland on its own?

GERGES: Are you asking me, Heidi?

COLLINS: Yes.

GERGES: See, what has happened as a result of the multiple challenges facing the Yemeni government, the Yemeni government can tackle on its own both the many civil wars and also, I didn't mention, Heidi, that in the south there is a separatist movement. The south, a major part of the country that was united with the north wants to break away.

So you have not only a declining social situation, you have a mini civil war in the north, you have a separatist movement in the south and you have al Qaeda submerging itself within this local conflict. So the ability of the central government in Yemen to take on the multiple security challenges have diminished a great deal.

COLLINS: OK. So who should step in then, talking about Saudi Arabia, what is the potential role there?

GERGES: You know, Heidi, this is that -- there is no solution made in the USA for Yemen. This has to be a multi-lateral solution in particular involving Yemen's neighbor, Saudi Arabia. Because the damage to Saudi Arabia is much more than the United States.

Already the rebels in the South -- in the North are attacking Saudi territories. Not only Saudi Arabia must be brought in but also Kuwait and also the Arab states. The Arab league, the league of the Arab states coupled with the Persian nations, in particular Saudi Arabia and Kuwait, must take the lead in providing a, what I call a political vision for Yemen and the United States must provide the leadership.

The worst thing we can do, we, the United States, is to become unilaterally involved in this complex and sophisticated situation because, Heidi, the more we are seen to unilaterally involve in Yemen, in fact this will bring about a backlash against the U.S. and provide public support for al Qaeda. This is not the way to go. It's a multi-lateral approach. American leadership and Arab and Muslim support for Yemen. COLLINS: That would be great if only it would happen that way because obviously the number one concern for Americans is to protect Americans as well, so it is a very, very tough line to walk. Fawaz Gerges, we certainly appreciate your time this morning, thank you.

GERGES: Thank you.

COLLINS: 2009, of course, a big year for medical news as well. We're taking a look back, plus a major development involving Tiger Woods.

(COMMERCIAL BREAK)

COLLINS: We just mentioned that we had some new information about the Tiger Woods saga, if you will. This just into the CNN NEWSROOM now. We are learning that AT&T says it will no longer sponsor Tiger Woods as that company joins two others, Accenture and Gillette, so far in dropping their support for the golfer after the allegations of numerous infidelities. You may remember that AT&T's logo actually appeared on Tiger Woods' golf bag. They have also been a major sponsor, title sponsor in fact of a PGA event in July where Woods was the host. So we'll continue to follow that.

Also Rush Limbaugh is in the hospital in Honolulu, Hawaii, this morning. Limbaugh's radio show chief of staff says the popular conservative host was rushed there after suffering chest pains but is now resting comfortably. Interesting that we have the president, Limbaugh and House Speaker Nancy Pelosi all vacationing in the aloha state at the same time.

H1N1 and health care reform. They were among the top stories that dominated medical news in 2009. Our senior medical correspondent, Elizabeth Cohen, is on assignment in Boston. She is joining us now live for a little bit of a closer look at the biggest medical headlines this year. Hi there, Elizabeth. What were your top five?

ELIZABETH COHEN, CNN SR. MEDICAL CORRESPONDENT: Heidi, you know what, these top five stories just popped out, they were so huge this year, it was such an incredible year for health stories. So let's take a look at the top five. The top one, of course, health care reform. It dominated the news. The second one, the H1N1 flu outbreak otherwise known as swine flu. Also mammograms, the story where a government panel said that women in their 40s shouldn't get mammograms or didn't need to get mammograms and, boy, did they not expect that outcry that happened afterwards.

Also the Obama administration saying yes to funding for embryonic stem cell, research reversing a Bush administration decision on that subject. And also the peanut butter scare. It seems like it happened ages ago, but it was this year where over 600 people got sick from salmonella in peanut butter. Six people died.

COLLINS: Yes, back to health care reform, because obviously that really dominated the headlines. Remind everybody where we stand now, Congress in recession. COLLINS: Sure. Where we stand now is just this month, the Senate passed their version of health care reform, the House passed their version. They will put that together in a conference bill in January.

Now, it seems like, again, this has gone on forever but really in less than a year each house came up -- house of Congress came up with a bill. That's really pretty incredible considering that everyone and their brother had an opinion on health care reform. You had citizens protesting, doctors had an opinion, the insurance industry had an opinion and all of these, all of this bitterness before in the past had squashed any attempt at health care reform. But this time it actually survived. They got a lot done in 2009.

COLLINS: Yes, of course we're waiting now for the House to merge with that Senate version.

COHEN: Right.

COLLINS: So that's what's happening next when we come up here in January. So I'm curious about your personal favorite medical story.

COHEN: You know, my personal favorite didn't make the top five but really it has to be Octomom.

COLLINS: No way!

COHEN: I just love that story because in the beginning everyone was like, wow, eight cute little babies, how wonderful.

COLLINS: Not me. I think they're cute and it's not their fault but I think everybody was at least a little skeptical, don't you?

COHEN: No, no, I remember in the beginning most voices were like, oh, wow, isn't this great, it's amazing. And then when they already found out she had six, it's like wait a minute, what's going on here. So even though Nadya Suleman became the woman people loved to hate, she did bring up some really good issues, her case brought up some good issues of what in the world are fertility doctors doing.

COLLINS: That's what I was talking about.

COHEN: Exactly, exactly. And I think that people really came to realize what I think you realized in the beginning, which was why are they putting that many embryos into a woman like her. Why did they do it?

COLLINS: Unbelievable.

COHEN: So maybe there was some good that came out of her case.

COLLINS: Yeah, well hopefully. We'll continue to follow it I'm sure. All right, senior medical correspondent Elizabeth Cohen coming to us from Boston this morning. Thank you, Elizabeth.

COHEN: Thanks. COLLINS: The man accused of trying to blow up Northwest flight 253, he comes from a wealthy family. So why will you be paying for his top-flight attorney?

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COLLINS: In Michigan, next week, the man accused of trying to blow up Northwest Flight 253 is scheduled to appear in court. And he'll be joined by a defense attorney who's an expert in terror cases. More on her, in just a moment.

But first, the concerns from one terrorism expert. He says the government committed a strategic blunder when it charged Umar Farouk Abdulmutallab in a criminal court.

(BEGIN VIDEO CLIP)

L. PAUL BREMER, CHRM. NATIONAL COMMISSION ON TERRORISM: When this fellow was subdued on Christmas Day, the very first and top priority should have been, and continues to be, to interrogate him to get as much information as possible. Because the role of -the goal is not to bring him to justice, the goal is to prevent future attacks. It's not surprising that as soon as he got himself a lawyer, he stopped talking.

And that's the price you pay when you consider these terrorists just as criminals. They are criminals, but our goal should be to get as much information as possible because our objective is to save American lives in the future.

(END VIDEO CLIP)

COLLINS: So who is the attorney for Abdulmutallab? And what will her expertise likely mean to his defense? CNN Pentagon Correspondent Chris Lawrence has some answers.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice over): Umar Farouk Abdulmutallab comes from a wealthy family, but his legal defense won't cost a dime. The suspect cut off contact with his parents, so American taxpayers will foot the bill for his court-appointed attorney.

(On camera): There can be this perception that if someone has a public defender, even if it's a federal one, they're getting a lesser quality attorney. Is that the case with Abdulmutallab?

ALAN GERSHEL, THOMAS COOLEY LAW SCHOOL: No, quite the contrary. He's getting perhaps one of the most experienced attorneys in town, if not in the country, with respect to his situation. He is getting very high quality representation at no cost to himself.

LAWRENCE: He's getting Miriam Siefer.

GERSHEL: It's not every defense attorney who is universally respected and admired. And I would say that she is one of the few that would fall in that category.

LAWRENCE: Alan Gershel would know. He's the former head of criminal prosecutions for the U.S. attorney's office in Detroit. Siefer is chief federal defender in an office with 19 attorneys.

UNIDENTIFIED MALE: How do you go about defending this?

MIRIAM SIEFER, ABDULMUTALLAB'S DEFENSE ATTORNEY: It's very premature because the criminal complaints are really considered just preliminary charges.

LAWRENCE: In the first major terrorism trial after September 11, Siefer defended Kareem Kabriti (ph) who was accused of being part of a Detroit terrorist cell plotting to blow up military bases and Disneyland. Kabriti's (ph) conviction was overturned and he's now living in a Detroit suburb. Siefer was also assigned to represent Terry Nichols' brother, James, when the Michigan native was a suspect in the Oklahoma City bombings.

(On camera): So this office isn't new to terrorism cases.

GERSHEL: They are not rookies, they're not novices, when it comes to representing clients facing these types of charges.

(END VIDEOTAPE)

LAWRENCE: So Abdulmutallab cuts off ties to his wealthy family and their money, still ends up with a very experienced attorney. But Gershel says the defense still is going to have some challenges. Not the least of which is a plane full of witnesses to that attack, Heidi.

COLLINS: Yeah, and so again, aside from being a public defender, a very experienced one, with the evidence against him, are they talking about what the defense is hoping for here?

LAWRENCE: Gershel says it is not always an all or nothing kind of decision, where she may not be trying to go for, say, an acquittal in a courtroom. She may be looking to lessen some of the charges or the severity of the charges against him. The key bargaining chip that he possibly could have is whether he has any information about connections to terrorist cells overseas.

COLLINS: Yeah, yeah, of course.

Real quickly, Chris, before we let you go, just wanted to get an update, if we know anymore about that DNA hearing that was cancelled because they were trying to match his DNA with the evidence that was found on the aircraft. And then it was just cancelled all of a sudden.

LAWRENCE: Yeah. I'm told that that's just been rolled over to the January 8th court hearing that he was going to have anyway, so they'll do it all at once. They'll have all those hearings together.

COLLINS: OK. All right. Chris Lawrence our Pentagon correspondent, thank you. LAWRENCE: You're welcome.

COLLINS: A year of huge gains on Wall Street is now coming to a close. Just how much did stocks manage to make up as we trudged through the thick of the recession? Alison Kosik is joining us from New York with more on that.

Hi, Alison.

ALISON KOSIK, CNN FINANCIAL CORRESPONDENT: Hi, Heidi.

Gosh, you know, what a year it's been. The past 12 months have brought with them a big batch of problems for Main Street, including sky-high unemployment and foreclosure rates. But Wall Street as it often does, it rebounded before the economy did. Stocks have rallied sharply since March despite the ongoing economic crisis.

All three of the major averages managed big gains this year. Take a look, the Dow and the S&P 500 have jumped by about 20 and 25 percent respectively. And the Nasdaq, that's been the real star, soaring by almost 45 percent. But all three are still far from the record highs set earlier this decade.

And if we look at the slew of formerly struggling industries from autos, to financial firms, they saw big bounces in their stock prices in 2009. Ford shares have more than quadrupled in value. And American Express have more than doubled.

Ah, though despite the gains of the year we are likely to go out with a whimper. Right now the Dow industrials down about 34 points and the Nasdaq off about 4. By the way, Heidi, there is a full session of trading today.

COLLINS: Yeah, yeah, definitely. A lot of people, though, really wondering if we can expect some of the same positive momentum in 2010. Of course, we never know if that is going to happen or not.

KOSIK: No. You know, we're not in the prediction business. But if history is any guide, the real huge gains are probably in the rearview mirror. Early in the rally the market gained momentum after everybody realized that we managed to escape a total meltdown. And then earnings and economic reports began to top forecasts, helping to drive the advance even further.

But now there's one analyst that puts it this way, the burden of proof is even higher and the market will likely get punished for any bad numbers that come out. And that's because expectations will be a lot higher next year.

Coming up, Heidi, in the next hour, I'll take a look back at the decade for stocks and that's not such a pretty picture. Also in 12 minutes I'll tell you how the new year means new rules on everything from mortgages, to cooking oils, to dog breeding. I'll have more on that, Heidi.

COLLINS: OK, excellent tease. All right, Alison, thank you. Wild horses being rounded up in Nevada and the government is doing it. Many animal rights activists are crying foul.

(COMMERCIAL BREAK)

COLLINS: Getting a look at some of our top stories now. Former hostage Peter Moore is enjoying his first day of freedom in two and a half years. The British computer expert released yesterday is said to be in good health and, of course, ready to go home. He and his four body guards were captured by Shiite Muslim insurgents in May of 2007.

If you plan to fly next year, be prepared to get a full body scan at security checkpoints. After last week's terror scare, the Transportation Security Administration plans to install 150 more scanners in airports across the country. Right now they are used at airports in about 20 U.S. cities.

One year after being named Big 12 coach of the year, Mike Leach is fired by Texas Tech. University trustees say it's over more than just one incident. The father of receiver Adam James recently alleged the coach had mistreated his son after he suffered a concussion. In a statement, Leach said his firing was based on lies.

Protests are expected today as federal authorities resume a planned round-up of 2500 wild horses in northern Nevada. Helicopters are being used to corral the horses on a mountain range about 100 miles north of Reno. Some animal rights activists are questioning the operation. Officials of the Federal Bureau of Land Management say it is necessary and humane.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They're going to go and have all the hay and water they can eat when they get there, good vet care and hopefully they'll go to a home where they're loved and made into a recreation horse or a saddle horse or just a backyard pet, whatever they want to do with them.

(END VIDEO CLIP)

COLLINS: The government is hoping to control the wild horse population in an 850-square mile area of public and private lands.

The most-watched viral videos of the year. Well, what were they? Josh Levs knows.

Josh, tell us what they were. I know what you're going to say on a couple of them and I just dread it.

(LAUGHTER)

JOSH LEVS, CNN CORRESPONDENT: Oh, boy. Well, then let's just put it this way.

The numbers are in, the countdown is all done. We are going to be able to tell you what the most-watched videos of the year were, and the winner is someone who knows very well how to surprise people.

(COMMERCIAL BREAK)

COLLINS: The new year means new rules on everything, from mortgages to dog breeding. Alison Kosik in New York now with a sampling of some of these new laws that take effect after the ball drops.

I love doing these stories, because some of them are plain so weird. But let's start with some of these new federal rules on mortgages.

KOSIK: Yeah, this is going to be really helpful if you're looking to get a new home. These new rules are going to take effect tomorrow and they're going to help clarify the cost of mortgages for consumers. The rules are going to mandate a standard three-page good faith estimate for consumers that you would receive within three days of applying for a loan.

Now, good faith estimates, they have been around for years, but they're all different, which makes it almost impossible to really figure out the true cost of a loan. And go ahead and compare it to offers from other banks. Often the bank with the lowest interest rate isn't offering the best total cost, because of high fees and other expenses.

The new rules also force banks to consolidate the fees, that they control, into one origination charge, and that charge will not be allowed to increase. Now, this is the first major update to federal mortgage rules since 1974. And if you're a savvy consumer, the government estimates the changes could save you about $700, Heidi.

COLLINS: Well, that's federal. Many new state laws also take effect tomorrow. Take us through some of the highlights there.

KOSIK: Let's go ahead and start in Kentucky where new limits on payday loans go into effect. These high-interest loans became a big concern this year and several states have imposed restrictions of some kind. The new law in Kentucky caps the annual interest rate at 36 percent and limits borrowing to just $500 at a time.

Let's go to California. That will become the first to impose a statewide ban on restaurants cooking with trans fat. Violators are subject to $1,000 fines. But restaurants there have had almost 18 months to make their transition, and most have already done so.

A restaurant smoking ban goes into effect in North Carolina. Smoking bans exist in more than 25 states, but this is really significant because North Carolina, it's a major tobacco grower, so this is really being seen as a symbolic advance for anti-smoking forces.

And in Washington State, new limits on dog breeders, Heidi. They will only be allowed to own or control 50 dogs at a time.

Heidi, back to you. COLLINS: That still seems like an awful lot, but what do I know. That is not my business.

KOSIK: But there are protections in place, that this puts in place, so we'll see what happens.

COLLINS: Gotcha. All right. Alison, thank you.

As you know, you can see almost anything online these days and many of you can vouch for that. Our Josh Levs is back with us to show us which videos you watched the most.

All right. Lay it on us.

LEVS: All right. I think you know, right. You have a sense of what's coming here.

COLLINS: Yeah.

LEVS: Because we were just taking a look. This is our Year In Review on CNN.com. Looking back at the year. One thing we link you to is the top viral videos of the year. And this, ladies and gentlemen, is the number one viral video.

COLLINS: Well, this is good. I love this one.

LEVS: Yes, it is. Take a look.

(BEGIN VIDEO CLIP)

SUSAN BOYLE, "BRITAIN HAS TALENT" (singing): I dreamed a dream of time gone by ...

(END VIDEO CLIP)

LEVS: Susan Boyle, of course. No total shock there. When she stepped up and she sang at "Britain's Got Talent." It was obviously striking to a lot of people And she became an overnight sensation. From total unknown one day..

COLLINS: Love it.

LEVS: To the most watched singer in the world the next day

Here is one that might surprise you, though, Heidi. Also in the top ten, a video that's referred to as all the single babies.

COLLINS: This is the best!

(BEYONCE SINGING, BABY DANCING)

LEVS: I love it.

COLLINS: Hit it.

LEVS: The little boy in New Zealand, Cory Elliott. He got down to Beyonce. Look at him go.

COLLINS: You know, his moves are a little bit better, a little fancier.

LEVS: You know, I like this even better than the original.

COLLINS: Look at that foot, look at the foot.

LEVS: So amazing. Oh, that little boy.

COLLINS: Beyonce, look out.

LEVS: Oh, man, I would stay on this all day but I've got producers in my ear, we've got to go.

All right. You can see the whole list at CNN.com. Thanks to the folks at TIME.com who numbered it up for us. We'll have more for you next hour, Heidi.

COLLINS: Thank God you didn't put the one up I thought you would put up. I'll just leave it there.

LEVS: OK, we'll talk.

COLLINS: Josh Levs, thank you.

And that does bring us to today's blog question in fact. We asked you, we want to know what you think about the most memorable news story, for you, of 2009. And then also the news that you really want to forget from this year. Some of our bloggers have things to say like this.

"The most memorable news was the inauguration of President Barack Obama", that was from Lily.

Then from Darrius, "Tiger Woods! The biggest fall from grace in the history of sports."

From Isaac, "Oh my gosh. Think about the Hudson miracle of captain Sullenberger. That was my most memorable, seeing a pilot saving human lives."

From Michael, "The death of Michael Jackson, and the health care bill."

From Zack, "I will always remember Iran."

From Jared, "I would like to forget about the balloon boy hoax."

Thank you.

From Clarissa, "I wish I'd never heard of the Gosselins or the Octomom."

I wonder if Elizabeth Cohen is listening.

"How irritating are they?"

Now, remember, we do love to hear from you guys. Just log on to CNN.com/Heidi to share your comments. We'll share as many of them as we can. So thanks for these.

Well, what was your top story of 2009? If you're wondering what our correspondents' top stories were, they're giving us their picks, too. Here's CNN all platform journalist, Jim Spellman.

(BEGIN VIDEO CLIP)

JIM SPELLMAN, CNN CORRESPONDENT (On camera): I'm Jim Spellman in Denver.

For a few weeks in September, Colorado was the center of a huge terrorism investigation. Federal officials say Najibullah Zazi, an airport shuttle bus driver of Afghan descent was plotting an attack on New York City. Zazi was arrested by the FBI and flown to New York City, where he is awaiting trial.

In October, the eyes of the world focused on the skies above Colorado and a small silver balloon. We all feared the worst, that a young boy had crawled into the balloon before it took off. Turned out to be a hoax. The balloon boy was in the garage the whole time. His parents were just looking for their own reality TV show.

One of the biggest stories ground here in Denver has been the boom in medical marijuana sold at dispensaries like this one. When we began 2009, the State of Colorado had issued about 2,000 permits for users of medical marijuana. As we enter 2010, that number is over 60,000. Lawmakers here will begin the year trying to find a way to regulate it and tax it.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COLLINS: We've taken a little bit of time this week to look back at 2009, the top stories and the people who made the year memorable. It took 525,600 minutes to write the script, but our Anderson Cooper has it boiled down to just two. So don't blink.

(BEGIN VIDEO CLIP MONTAGE)

ANDERSON COOPER, CNN ANCHOR, "AC 360" (voice over): Sully becomes a household name. Captain Sullenberger lands US Airways Flight 1549 safely in the Hudson, despite losing power minutes after takeoff.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I, Barack Hussein Obama, do solemnly swear.

COOPER: Barack Obama is sworn in as the 44th president.

"Slumdog Millionaire" wins eight Oscars, including best pictures.

Stock market bottoms on March 9, soars the rest of the year.

Daring rescue, Navy SEALS free the captain of the Maersk Alabama, killing three pirates.

Carrie Prejean wins first runner up in Miss USA 2009, where she famously objects to:

CARRIE PREJEAN, MISS USA 2009: ... opposite of marriage.

COOPER: H1N1, or swine flu, is deemed a global pandemic.

Mahmoud Ahmadinejad is reelected as president of Iran.

On the verge of a comeback tour, music legend Michael Jackson dies at 50.

Legendary sex symbol and Charlie's Angel, Farrah Fawcett, dies at 62, after a long struggle with cancer.

A hundred and fifty years, that's the sentence for Ponzi scheme mastermind Bernie Madoff, who bilked investors of at least $13 billion.

WALTER CRONKITE, BROADCAST JOURNALIST: And that's the way it is.

COOPER: America's most-trusted man in news and former host of "CBS Evening News" Walter Cronkite dies at 92.

SEN. EDWARD KENNEDY, MASSACHUSETTS: The hope rises again!

COOPER: Long-time Senator Ted Kennedy, champion of civil rights and universal health care dies of brain cancer at 77.

A surprise winner, President Obama gets the Nobel peace prize, many asks why.

UNIDENTIFIED MALE: We did this for a show.

COOPER: Balloon boy and the Heene family. Need we say more.

Tiger Woods crashes a car, admits transgressions, and takes an indefinite leave from the PGA tour. Stay tuned.

(END VIDEO CLIP MONTAGE)

COLLINS: And a reminder, you can ring in the New Year with CNN, Anderson Cooper and Kathy Griffin live from Times Square on New Year's Eve. The countdown begins at 11:00 p.m. Eastern.

I'm Heidi Collins. Happy early new year to you, everybody. We'll see you in 2010. CNN NEWSROOM continues with Tony Harris.

TONY HARRIS, CNN ANCHOR, CNN NEWSROOM: Good morning, everyone. It is Thursday, December 31. The final day of the year, and the decade. Here are the top stories for you in the CNN NEWSROOM.