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Full-Body Scanners & Privacy; Wall Street Bonuses and Backlash; Revenge Motive in CIA Deaths

Aired January 11, 2010 - 10:59   ET

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


TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Monday morning, January 11th. And here are the faces of the stories driving the headlines today.

Humam al-Balawi, suicide bomber. On a newly released video, the double agent explains his motive for the attack in Afghanistan that killed seven CIA officers.

Barbara Peterson, journalist and airport screener. I will ask her about life on the other side of the security scanner.

And Jay Leno right back where he started. NBC confirms a late night shakeup. Can the peacock network smooth Conan O'Brien's ruffled feathers?

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

So, new questions today about those airport body scanners. Some privacy advocates say the government misled the public about what the scanners can do with the images they take.

The story now from our homeland security correspondent, Jeanne Meserve.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): The images produced by whole body scanners don't leave much to the imagination. But the Transportation Security Administration has said repeatedly, even on its own Web site, your privacy will be protected.

UNIDENTIFIED MALE: The system has no way to save, transmit, or print the image.

MESERVE: A 2008 press release says the machines have zero storage capability, but a TSA document written just three months earlier spelling out requirements for potential manufacturers said the machines had to have the capability to capture images of non- passengers for training and evaluation purposes.

The procurement document was recently obtained by EPIC, the Electronic Privacy Information Center.

MARC ROTENBERG, EXECUTIVE DIRECTOR, EPIC: We think it's obvious the machines are designed to restore and record images.

MESERVE (on camera): The TSA's been lying?

ROTENBERG: Yes. I would use a more polite word if I could but it would be less accurate.

MESERVE (voice-over): The document specifies that to protect privacy during passenger screening there will be no storage or exporting of images, but EPIC fears that the ability to save images during the test mode leaves open the potential for abuse by insiders and outsiders.

The document says the machines must have hard drives for storage, and USB ports and Ethernet connectivity that could allow downloading of images. An unspecified number of users, including TSA headquarters, maintenance contractors, and so called super users, have the ability to export raw image test data and can also change the ten privacy settings built into the machines.

ROTENBERG: I don't think the TSA has been forthcoming with the American public about the true capability of these devices.

MESERVE: TSA officials tell CNN, yes, the machines can retain and export images when they are at TSA testing facilities. But it says those functions are disabled by the manufacturer and machines are delivered to the airports without the capability to store, print, or transmit images.

The TSA says there is no way for someone in the airport environment to put the machine into the test mode or change the privacy filters. The TSA says all images are deleted from the system after they're reviewed by a remotely-located operator, and it says the machines are not networked and cannot be hacked.

(END VIDEOTAPE)

HARRIS: And Jeanne Meserve joining us from Washington.

Jeanne, is EPIC satisfied with the TSA assurances?

MESERVE: No. EPIC is saying, we want to see the documents that tell us exactly what you're doing, that prove to us they're effective and demonstrate that privacy is protected. EPIC is saying until those questions are answered, there shouldn't be any further deployment of these machines at the nation's airports.

HARRIS: And Jeanne, do these documents raise questions about whether these machines can detect explosive powders like PETN?

MESERVE: Well, when you go through the document, it says that the machine has to detect weapons, has to detect liquids, it has to detect explosives. It doesn't say anything specifically about powders. But when we asked the TSA about this capability, they insisted that, yes, the machines could detect powders hidden underneath clothes -- Tony.

HARRIS: OK. Our Homeland Security Correspondent Jeanne Meserve for us.

Jeanne, thank you.

And later this hour, we're going to give you an inside look at the problems facing the Transportation Security Administration. A reporter goes undercover as a TSA screener. Barbara Peterson tells us what she learned.

And other big stories on our radar this morning.

Republicans are calling on Democratic Senator Harry Reid to give up his leadership post. Reid, as you know, has apologized for racial remarks about then-candidate Barack Obama in 2008. The president and the Congressional Black Caucus accepted Reid's apology.

(BEGIN VIDEO CLIP)

GOV. TIM KAINE, DNC CHAIRMAN: Senator Reid very appropriately, immediately went out and apologized for comments that were insensitive. They were comments made in the context of him praising Senator Obama and supporting his candidacy for president. But, still, they kind of reflect the thinking of a day gone by.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

MICHAEL STEELE, RNC CHAIRMAN: When Democrats get caught saying racist things, you know, an apology is enough. If that had been Mitch McConnell saying that about an African-American candidate for president of the United States, trust me, this chairman and the DNC would be screaming for his head.

(END VIDEO CLIP)

HARRIS: Education professor Marc Lamont Hill of Columbia University weighs in with his reaction to the comments from Senator Reid. That's next hour.

And, of course, we always want to hear from you. What are your thoughts on the majority leader's comments? Is an apology enough, or should Harry Reid lose his leadership position in the Senate?

Go to CNN.com/Tony. And next hour we will share some of your comments, right here in the NEWSROOM.

Also, Anderson Cooper will have much more on this controversy and the book at 10:00 Eastern Time.

Three more U.S. service members have been killed in Afghanistan. NATO says the troops died today during a fight with militants in the volatile southern region. No other details released so far.

A trial to determine the constitutionality of Proposition 8 begins in California next hour. The measure approved by state voters in 2008 bars same-sex marriages. Two couples have sued, arguing Prop 8 violates the constitutional right to equal protection. The trial can be seen on YouTube.

Temperatures tumble to record lows across Florida this morning, and another night of freezing weather is ahead. One expert says the weeklong cold spell could cost the state 10 percent of its orange crop. If true, you know what that means for all of us -- higher prices.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have to prepare for the worst and hope for the best.

(END VIDEO CLIP)

HARRIS: CNN meteorologist Rob Marciano has the cold forecast in just a couple of minutes.

So, Wall Street's bonus season gets under way in earnest this week. Despite pleas from Washington to slim down the fat payouts, get ready to be outraged.

CNN Business Correspondent Stephanie Elam joining me now.

And look, Stephanie, most of America is not going to like what they hear from Wall Street this week on these bonuses.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: No, you're right, Tony. And you know what? The thing about the banks is that they're in a really rough spot, because their employees aren't going to be happy in general, and a lot of people outside of Wall Street are pretty much like you guys, just do not get it.

You don't understand the fact that you got bailed out. You're the reason why we went into this whole economic debacle over the last year or so, last couple of years. And you guys just don't -- are not connected to the pain that is out there right now.

Overall, it's going to be a difficult situation for the banks. Just to give you an idea of what people are saying on Capitol Hill, let's take a listen to Christina Romer and hear what she said to John King on "STATE OF THE UNION" this weekend.

(BEGIN VIDEO CLIP)

CHRISTINA ROMER, COUNCIL OF ECONOMIC ADVISERS: No one wanted to bail out the banks just for the banks' sake. It's because we know that credit is the lifeblood of a modern economy. And without it, families can't get loans to buy cars or send their kids to school, and small businesses can't get loans.

So we know that the financial sector matters. But at the same time, right, we have had to take these extraordinary actions. And you would certainly think that the financial institutions that are now doing a little bit better would have some sense.

And this big bonus season, of course it's going to offend the American people. It offends me.

(END VIDEO CLIP)

ELAM: All right. So you hear that. And here's what the banks are saying, that this is their smallest bonus pool ever.

That's if you take it as a basis of -- as a basis of a percentage of revenues. However, even though that may be the case, the overall amount of money that people will get this year is going to rival the numbers that they had before we saw this economic meltdown. So back to 2007 levels.

So, a lot of people are saying they're just not in touch and they don't understand that people are really angry at them. Unemployment in this country still around 10 percent. You've got people out there who say they have some great ideas, but they can't get any credit for them because the banks aren't lending enough to small businesses. So, a lot of people just thinking Wall Street is not connected right now.

HARRIS: Well, particularly, if you felt as though the banks were giving you a fair shake when you went in to get a loan, if you had a sense that your bank card, with your bank on the front of it, was giving you a fair shake on the rates charged to you, you would maybe feel, no, maybe not.

ELAM: Well, yes, maybe not. And also, you know, take, for example, a bank like Goldman Sachs. They're saying, hey, we're going to have record profits, our best numbers ever, so we have to reward some of our employees with this, otherwise these people will traipse off and go off to different companies who didn't get bailout money who have been fine throughout all this.

So, it's a battle to keep -- to retain your top talent through all levels of the company, not just the top tier. And also, to make sure that you know that this is going to be a publicity problem for you when you have to deal with this.

So, you'll see a lot of people are going to get their bonus money through stock instead of cash, which, obviously, employees don't love as much. Some of that will be restricted. And then you'll also see that some people's base salaries will go up, because on Wall Street, most of their money is made by bonuses. So there'll be a change there.

HARRIS: Well, Stephanie, it feels like the financial sector and America, at least most of America, will be spending most of this week talking past one another.

ELAM: Oh, absolutely.

HARRIS: Good to see you, Stephanie. See you next hour. Thanks.

We are tracking ties to terrorism. Next up, Jordan. Our senior international correspondent, Nic Robertson, gets his hands on a Taliban video where a self-proclaimed bomber vows revenge on the United States. And the man is back, warm in Atlanta. Rob Marciano in the weather center, back from Memphis, where he froze his jaw off.

We're going to check in with Rob and find out when we'll get some warmer temperatures here in just a couple of minutes.

But first, let's take you to Wall Street, New York Stock Exchange, for a look at the numbers. We are down, flat, in negative territory. We are checking these numbers for you throughout the morning with Susan Lisovicz, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: The Jordanian doctor blamed for the suicide bombing that killed seven CIA workers in Afghanistan did it for revenge. Humam al- Balawi is one of our "Faces of the Story" today. He says on a videotape he worked for the Taliban to set up the CIA and the Jordanian Intelligence Service.

Our Nic Robertson has more.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Speaking in Arabic and English, Jordanian doctor Humam Khalil Abu- Mulal al-Balawi leaves no doubt he duped both the CIA and his Jordanian intelligence handlers.

HUMAM KHALIL ABU-MULAL AL-BALAWI: The Jordanian and the American intelligence services offered me millions of dollars to work with them and spy on Mujahideen here.

ROBERTSON: While we can't confirm those claims, this much is clear, he told the Jordanians he was going to Pakistan for medical training and to help them target Al Qaeda leaders. But all along, his plan was to attack U.S. targets.

AL-BALAWI: I came to the Mujahideen and I told them everything, and we arranged together this attack.

ROBERTSON: For this veteran of Middle East security, it is clear, warning signs of a double cross were missed.

ALI SHUKRI, FMR. ADVISER TO KING HUSSEIN: It better be a learning experience. I mean, nothing teaches you harder than the spilling of blood.

ROBERTSON: The CIA deaths, he fears mean all spies will need reevaluation. Setting back the CIA hunt for Osama bin Laden.

SHUKRI: It will set them back, until they reform, regroup and start again.

ROBERTSON: The video message has other important lessons, too. The Arab doctor who had joined Pakistan's Taliban, claims his attack in revenge for U.S. drone strike killing their leader last year. Significant, the Taliban, not al Qaeda took the lead, an indication of how closely the two groups operate together.

SHUKRI: Of course, it's worrying, because the nature of things in the Middle East, they never go away, they mutate, they spill over. We haven't seen Taliban in Yemen, but who knows.

ROBERTS: To Dr. Humam al-Balawi's father, the video his final confirmation of his worst fear, his son is dead.

UNIDENTIFIED MALE: I am very, very sad. When I saw that Humam, I am very, very sad.

ROBERTSON: His other sons taking him inside the house, away from the cameras. But not before he speaks of his anger, implying the intelligence agencies were at fault.

(on camera): What his father has also said, is that he's angry at the people who did this to his son, that changed his son's mind. He won't say exactly who he thinks those people are, but he says this isn't the way he brought his son up, he brought him up to be a moderate.

(voice over): What this new video reveals is anything but a moderate.

(END VIDEOTAPE)

HARRIS: And Nic Robertson joining us from Amman, Jordan, right now.

Nic, a couple of questions for you.

What are you the implications for spy agencies, the CIA, Jordanians tracking al Qaeda?

ROBERTSON: Well, they're going to have to look -- as the analyst says there, they're going to have to go back and sort of look at all the spies that are operating there, and they're going to have to sort of re-evaluate some of the steps they made.

This Jordanian doctor was well known for some of his very, sort of, radical blogs. And some analysts here are saying, well, look, how could those radical blogs have been overlooked and you still feel you can trust this guy? Also other things overlooked, such as how could you trust this doctor, who literally just arrived in Pakistan in one year, how could you really believe that he was getting close to the leadership of al Qaeda?

Of course, a lot of details that are under investigation by the CIA right now that we're not aware of. But these are the things that people who sort of know how the intelligence services here work, and these are the questions that they're raising that will need re- evaluation -- Tony.

HARRIS: And Nic, what does this whole deadly episode tell us about al Qaeda and the Pakistani Taliban? ROBERTSON: Well, I think one of the things we can see about the Pakistani Taliban here, it is very clear that they wanted to be seen on this videotape front and center of this operation. It's their leader, the Pakistani Taliban's leader, who's sitting there next to the Jordanian doctor. And they're the ones that the Pakistani government have just been trying to destroy on the border of Pakistan and Afghanistan.

In many ways, this is a Taliban, the Pakistani Taliban, coming back and saying you've gone after us for the last six months, and here we are, we're still able to pull off a big operation like this. And it shows as well just how closely the Pakistani Taliban are working with the al Qaeda leadership to strike inside Pakistan -- inside Afghanistan, rather -- something the Pakistani Taliban, we haven't seen them doing in such a big way before. So it really shows sort of a symbiosis of these groups working very, very closely together -- Tony.

HARRIS: Absolutely. OK.

Our senior international correspondent, Nic Robertson, for us from Amman, Jordan.

Nic, appreciate it. Thank you.

You know, if you're trying to get a handle on wrangling (ph) your debt, here's a twist you might not expect. Credit card companies could charge you for not using your card. Where will it end?

Personal Finance Editor Gerri Willis has her "Top Tips" next in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: All right. Let's get you caught up on our top stories now.

Body scanner controversy. A Washington-based privacy group says the new scanners can store and transmit images despite what the TSA is saying. The agency has come under fire for a number of reasons lately.

In about 15 minutes, I will talk with a reporter who went undercover as a TSA screener. Her thoughts on where the agency is failing all of us.

The father of the Nigerian man who tried to blow up a plane on Christmas Day has been invited to testify before the Senate Foreign Relations Committee. No word on whether he will accept. The invitation comes after the U.S. added Nigeria to a list of countries of interest.

CNN's Christian Purefoy recently talked with Nigeria's foreign minister about the inclusion.

(BEGIN VIDEO CLIP) OJO MADUEKWE, NIGERIA FOREIGN MINISTER: The major casualty of Christmas Day, there will be the loss of goodwill, the loss of solidarity. That worries me a lot.

(END VIDEO CLIP)

HARRIS: The U.S. isn't planning to send ground troops to Yemen, but it will decide to double its security aid to the country to help fight al Qaeda. That's what General David Petraeus told our Christiane Amanpour. Here's a cut from the interview.

(BEGIN VIDEO CLIP)

GEN. DAVID PETRAEUS, COMMANDER, U.S. CENTRAL COMMAND: The programs that we submitted that were part of the budget that has since been approved, the appropriations bill that's been signed by the president, would, in fact, more than double the security systems. Last year, it was somewhere around $70 million. Over the course of this fiscal year, it should be somewhere around $150 million or more. And the amount of economic aid increased as well.

(END VIDEO CLIP)

HARRIS: The final round of new credit card rules kick in, in six weeks. Banks have been busy, as you know, raising rates and coming up with new fees to make up for lost revenue.

CNN Personal Finance Editor Gerri Willis is here.

Gerri, I've got to tell you, this new fee, does it really charge you for doing nothing?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes. Short answer, yes. Well, look, Tony, here's what's going on.

For months, issuers have raised credit card rates and fees. Well, really fast.

Now a growing number are starting to tack on new card fees. And like you said, it's inactivity fees. Let's take a look at some of these fees.

In June, Fifth Third Bank started charging a $19 fee if credit card borrowers had no account activity, they didn't use the card in 12 months. And there are also variations on this inactivity fee, quasi- inactivity fee.

Citigroup has a policy on some cards where, if you don't spend up to a certain level, a certain amount, you'll have to pay a fee of up to 90 bucks. And there are a number of new fees that have been reported -- annual fees.

Bank of America will start experimenting with annual fees from 29 bucks to 99 bucks. Reinstatement fees -- Citi has a policy where credit card borrowers who pay late have to pay a reinstatement fee in order to redeem accumulated points for rewards. There's also a printed statement fee, believe it or not. You may also start getting charged if you get a paper statement instead of viewing it online. So, Tony, the fees, they just go up and up.

HARRIS: All right. Any advice here, Gerri?

WILLIS: You have to read your mail. You have to look at every letter you get from your credit card issuer. They are required to tell you these new changes. The changes may be buried in fine print.

Look, experts we talked to say you may be receiving a lot of promotional APR offers. So, offers for new cards with really low interest rates. These will lure you into getting a new card, but at the end of the promotional period you may be subject to an interest rate far higher than you were originally paying.

So, the takeaway here is, if you're going to take one of these promotional offers, make sure you can pay off that balance before that rate expires.

And, of course, if you have any questions, send them to me at Gerri@CNN.com. We want to hear your credit card stories. Send them to me. Then we'll tell Tony.

HARRIS: I'm just so outraged. Well, you know, I really am outraged. I'm trying to contain it, because it's part of my resolution, just to contain it better.

All right, Gerri. Appreciate it. Thanks.

WILLIS: My pleasure.

HARRIS: And later this hour, we will check the economy in Jackson Hole, Wyoming, the resort town that's taken a big hit from the recession.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: The days of $4 a gallon gas are gone. You can thank the recession for that. But now that the economy is getting back on its feet, gas prices are rising again.

Susan Lisovicz is on the floor of the New York Stock Exchange with details.

And look, Susan, because I made this resolution to myself, I'm going to try to contain my outrage. I'm not going to start railing on gas prices again, but this is getting to be pretty expensive again.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: Yes, it is. I mean, if you want to look on the bright side, you know, it's not $4-a-gallon gasoline. I mean, we're still talking about a 35 percent discount from those days. That was the summer of '08. But the fact is, happy new year, Tony! I mean, gas prices are higher this year than they were all of 2009.

Why is that? Well, because oil prices are increasing even faster than gas prices. AAA says the national average right now, $2.75 a gallon; a month ago it was $2.62 a gallon.

So what's contributing to this? Well, one of the reasons why, the weak dollar. One of the factors is investors go into oil when the dollar is so low because it's cheap. Oil is traded in dollars.

Another reason is we're talking about China is really wrapping up its manufacturing. Well, they use a lot of oil for that, and China uses a heck of a lot of oil.

Finally, Tony, you may have noticed, it's cold. So there's demand. Here in the States, it's cold. You just heard Rob's forecast. It may be moderating, still a lot of heaters working, all contributing to your outrage.

HARRIS: I'm trying to contain it, because I've made a resolution. I'm trying to follow through at least through January.

So are we going to see $3 a gallon for gas here any time soon? What are your thoughts on that?

LISOVICZ: Maybe not in Georgia, but in Alaska, you're there already. OK? We're seeing Alaska, the nation's highest at $3.37 a gallon. Also above $3, California, Hawaii, and this state, the Empire State, is getting close to it.

The national average, it certainly could hit $3 a gallon of gas if you see what happens with oil. Oil right now is trading at $82.50 a barrel. Gets to $90, hello, $3-a-gallon gas. Hopefully, we're not there.

Right now, we're seeing some movement in oil, but we're not seeing anything on the Dow -- it's flat. The Nasdaq seeing a little bit of selling pressure, it's down 12 points right now. Kind of a quiet day, Tony. Kind of a calm day.

HARRIS: Thank you. Help me with this. I'm just trying to get through at least January without breaking this resolution.

LISOVICZ: Get in a lotus position on set.

HARRIS: Absolutely. All right, Susan, see you next hour. Thank you, lady.

Small is big and less is more at this year's auto show. See what's driving Detroit in 2010, that's at CNNMoney.com.

And keeping you safe while you're on a plane, it is the job of the TSA and it is a lot to handle, as you can imagine. We will talk to one woman who was hired as a screener.

(COMMERCIAL BREAK)

HARRIS: Privacy advocates are raising new concerns about those airport full-body scanners. They accuse the TSA of misleading the public about the machine's capability to store images once they're scanned. The electronic privacy information center says the machines will have the ability to capture and store images, but the TSA says that only applies to machines at testing facilities, not at airports.

TSA screeners are a last line of defense in the effort to prevent terrorist attacks on U.S. planes and our guest got an inside view of what it's like to work for the agency. Barbara Peterson is with us, she is a senior aviation correspondent for "Conde Nast Traveler" and she worked two months as an airport screener.

Barbara, good to see you. Thank you for your time.

BARBARA PETERSON, SENIOR AVIATION CORRESPONDENT, "CONDE NAST TRAVELER": Thank you.

HARRIS: The facts of the Christmas Day story for our discussion are the same except for that Abdulmutallab boards the plane -- attempts to board the plane here at a U.S. airport with PETN in his underwear. Do we catch it?

PATERSON: Well, I hope so. I would hope that he would be caught by one of the layers of security. And it's important to remember that it's not just one part of security. It's all these different layers that work together, including what should have been done well before he got anywhere near an airport, which is better prescreening of passengers. That is, matching up some of those dots.

And also, flagging someone who might, for various reasons, trigger some more suspicions. Even something like buying a ticket with cash. That's not a normal thing to do these days. That alone should have done it.

Now, whether or not our airports are better, again, I trust they are.

HARRIS: Yes, that's the question. Have we improved, in your mind, since 2006, in your experience, to suggest that we would have done a better job than, say, Schiphol in Amsterdam?

PETERSON: Well, the reason why I went undercover back in 2006 was exactly that, to look into reports -- in my mind this was five years after 9/11, we'd spent $20 billion, overhauled security, hired a whole new screening workforce with better wages and better working conditions than the minimum-wage people they replaced. All of that has taken place and yet, we still kept on hearing these reports of screeners failing on the job. So that's why I went undercover to look at that.

And, you know, what I learned was this, I mean, it was a classic good news, bad news story, I suppose, because, yes, there had been a lot of improvements, but yet there were still so many more things that needed to be done. A lot of it was security theater. A lot of it was the sort of the Kabuki dance at the checkpoint that we all know and put up with. It's unfortunate that it has to be that way. I think a lot of it is window dressing to just make people feel more secure.

HARRIS: Is that how you feel about it today? I'm wondering if you've done any follow-up reporting in the areas of concern for you. You were talking about training equipment. In your view, has the system been upgraded? And I hope the answer is yes. And to what degree?

PETERSON: It has been. Yes. Again, it has been. There is new equipment coming online. As you just reported a little while ago, one of them is very controversial, the full-body scanners. However, as I understand it, those machines really do do the job. They can see things hidden on people. That would presumably catch something like the explosives that the man carried on on Christmas Day.

So, yes. Better equipment is coming online, but these things take time. That's the problem. They're very expensive. Each one of those full-body scanners is more than $170,000. And so the question is, do we have the will and the political momentum to really spend the money, spend what it will take.

HARRIS: Another question here. Accountability seems to be at real question here, did you find in 2006 that there was real accountability in the TSA system if people screwed up, they were disciplined? If they screwed up in an egregious way, they were fired?

PETERSON: Yes, definitely. In fact, while I worked there that happened to a couple of my colleagues on the checkpoint. So, yes.

As always, there are always some feelings among the screeners that some people are getting maybe a free pass because they're friends with the director or something. That you're never going to get away from there.

But, yes, I remember it was very tough. A lot of people did get disciplined. And some people who were -- I thought were actually very good, competent screeners, and you have to go back for retraining and testing every few months, and some of them failed just because maybe they were having a bad day. So that part of it was a definite noticeable improvement from what existed before.

HARRIS: Barbara, appreciate it. Thanks for your time.

PETERSON: Thank you.

HARRIS: Barbara Peterson from "Conde Nast Traveler."

Let's get to our top stories now.

A federal trial to decide if California's ban on same-sex marriage is constitutional starts minutes from now in San Francisco. It challenges Proposition 8, the gay marriage ban approved by state voters just over a year ago.

A leading senator says someone needs to be held responsible for mistakes surrounding the Christmas Day terrorist attack. Senator John McCain says President Obama's remarks taking personal responsibility are not enough. He says the attempted bombing highlights the need to stay vigilant about security.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: I think America is safer since 9/11, but we're not -- certainly not safe. We have a long way to go, but I think we've made significant progress. I think we've shown that al Qaeda can land most anywhere. Where there's fertile ground, they're going to breed.

(END VIDEO CLIP)

HARRIS: The Detroit Auto Show kicked off today, but sparkle isn't as bright as in previous years. Auto sales fell last year by nearly 3 million units compared to 2008. Nearly 200,000 American jobs were lost in the industry. While buyers were tight fisted in the showrooms, the government was loose with its lending, doling out more than $80 billion to rescue automakers.

(COMMERCIAL BREAK)

HARRIS: Senate Majority Leader Harry Reid has apologized for the remarks about then-candidate Barack Obama that appear in a new book. Reid referred to Mr. Obama as "light-skinned with no negro dialect."

A top democratic strategist says, apology accepted.

(BEGIN VIDEO CLIP)

DONNA BRAZILE, DEMOCRATIC STRATEGIST: Those words were offensive. They are part of the last century, they're not part of this century and centuries to come in terms of how far we've come.

But at the same time, Harry Reid has been a champion for civil rights, social justice issues. He's been on the side -- the right side of history when it comes to equal opportunity for all Americans. He believes in a color-blind society. So I think the reason why Harry Reid reached out to so many African-Americans and other Americans, people from all walks of life, because he's apologized not just to the president, but he's apologized to everyone else because he understands that those words were very unfortunate.

(END VIDEO CLIP)

HARRIS: Education Professor Marc Lamont Hill of Columbia University weighs in with his reaction to the comments from Senator Reid next hour.

Of course, we want to hear from you -- we always do. What are your thoughts on the majority leader's comments? Is an apology enough or should Harry Reid lose his leadership position in the Senate? Go to CNN.com/Tony. We will read some of your comments next hour.

And tonight, a look at the book that has stirred up controversy surrounding comments made by Senator Reid that some construe as racist. Plus, more behind the scenes from the 2008 election. "AC360" tonight at 10:00 Eastern.

(COMMERCIAL BREAK)

HARRIS: The father of a radical Islamic cleric who has been tied to the so-called Christmas bomber and the accused Ft. Hood shooter says his son is not Osama bin Laden. He spoke exclusively to CNN's international security correspondent Paula Newton in Yemen and she joins us live now from the capital, Sanaa.

Paula, let's start here. Why is Anwar al-Awlaki father denying that he is a member of al Qaeda?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: He's saying, look, he's a radical preacher, yes. Perhaps his preachings diverge from the mainstream, but he's saying, look, you cannot take his preaching and tie it to violent acts. He said despite that, his son right now in this country is a wanted man, a cornered man, but he says he is not a member of al Qaeda. Just to let you hear some of the things he told us, he said, "I am now afraid of what they will do to my son, he's not Osama bin Laden, they want to make something out of him that he is not."

And this is what's really interesting here, Tony. This is a man who was smarter than to try and tell us when he had last spoke with his son or if he was in contact with his son, but he clearly is trying to buy for some time here. He says, "I will do my best to convince my son to do this, to come back," and what he's talking about is surrendering, "but they are not giving me time... they want to kill one of their citizens. This is a legal issue that needs to be answered." When he says that, he is referring to the American government.

Tony, this is a man who describes his son as an all-American boy, somebody who enjoyed his life in the United States, wants to go back to the United States. Many people have trouble squaring this considering the day after the Ft. Hood shootings Anwar al-Awlaki he called Major Hasan a hero. I asked his father what he thought of that. He said, look, I don't agree with the views of my son. I understand they are very controversial, but that does not mean he's a member of al Qaeda.

Tony, to put the record straight on this, an American security official confirms to me that, in fact, al-Awlaki did meet with Abdulmutallab, the accused Detroit bomber, and also did have influence in the Ft. Hood shootings. And they say categorically they know he is a top member of al Qaeda here in this country -- Tony?

HARRIS: An all-American boy, as described by his father. That's -- yeah, right. That's going to be tough for a lot of folks to square.

All right, Paula Newton for us. Paula, appreciate it.

The back and forth of late night comedy. We will try to get you some idea as to how you should set your DVRs. That's next right here in the CNN NEWSROOM.

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HARRIS: So NBC is changing the face of its late night programming. It centers on Jay Leno, who is one of our "Faces of the Story" today. CNN's Kareen Wynter has details on that and the comedic fallout.

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): Jay Leno recently made light of rumors his primetime gig was up.

JAY LENO, NBC HOST: You know, if they did cancel us, it would be an easy move for me because I still haven't unpacked from the last show they canceled us.

(LAUGHTER)

WYNTER: But it turns out what was a joke is now reality, the comedian is on the move again -- back to late night, after leaving his late night slot just three months ago for primetime. NBC executives announced Sunday that Leno's nightly talk show didn't meet the needs of affiliates at 10:00 p.m. So they're yanking the program February 12th.

MARC BERMAN, "MEDIAWEEK": Their concern was saving money and airing Leno know five nights a week. That was probably the worst mistake I have ever seen any network do ever.

WYNTER: Mediaweek's Mark Berman says NBC's decision to move Leno to the 10:00 p.m. slot last September has come back to haunt them.

BERMAN: What they didn't realize was that the viewers watching Leno in late night were not necessarily the same people watching television in primetime. So there was no reason to believe that everybody would come to him in primetime.

WYNTER: NBC affiliates began demanding a change when they started losing viewers leading into their 11:00 news hour. The networks' affiliate chairman praised the announcement in a statement released Sunday saying, quote, "This is a great move for the affiliates, the network and, most importantly, the viewers. We admire their willingness to innovate and to change course when it didn't work for us."

NBC said Sunday that the new plan is for Leno to take over a shorter version of the "Tonight Show" at 11:35 p.m. with Conan O'Brien moving back to late night after midnight and Jimmy Fallon hosting a new program following O'Brien. But NBC execs haven't finalized the late night shuffles and some critics say, keeping the laughs coming with all three hosts could be tricky.

LENO: NBC is working on a solution they say in which all parties will be screwed equally. So I think...

(LAUGHTER)

CONAN O'BRIEN, NBC HOST: NBC lawyers have asked me to refer to this program as "The Sometime at Night Show With Some White Guy." So...

BERMAN: If I were in Leno or Conan's shoes, I would be looking elsewhere because I don't personally think they're going to get both of them on board.

WYNTER: Guessing games aside, one thing is certain, NBC wants to iron out the late night laughs by finalizing its lineup before the start of the February Winter Olympics.

Kareen Wynter, CNN, Hollywood.

(END VIDEOTAPE)

HARRIS: And here's what we're working on for the next hour of CNN NEWSROOM.

Reaction to the racially charged remarks from Senator Majority Leader Harry Reid about President Obama. We will have some of your comments as well, and we will also get perspective from Columbia University Professor Marc Lamont Hill.

Plus, we'll find out where the push for a health care reform bill stands right now. A report from Capitol Hill coming your way, and much more in the next hour of CNN NEWSROOM.

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HARRIS: You know, last year has been both a blessing and curse for Wyoming, a state whose economy is built largely on the business of fun. CNN's John King recently wrapped up his 50-state tour with a trip to the slopes.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): The Grand Teton Peak reaches nearly 14,000 feet. This above-the-clouds view part of Jackson Hole's wonder and its leading industry.

Beauty is big business here, and Wyoming a case study in how a bad economy impacts travel and tourism. With family budgets tight, 2009 saw record visitations to inexpensive national parks like Grand Teton and Yellowstone and lots of open space on the more expensive slopes at places like the Jackson Hole Mountain Resort.

NICK MERLUZZI, LIFT OPERATOR: How you guys doing today? Conditions are pretty good.

KING: Where Nick Merluzzi has worked for two winters now.

MERLUZZI: It's snowing and it's -- I love to be outside and have be my office with the views I get and the benefits I get, it's great.

All right, have a good run, sir.

KING: An up-close look now at whether 2010 will bring more people and a recovery for a guy who had an all too close view of the economy's crash.

MERLUZZI: I used to work in finance in New York City. Unfortunately, I lost that job around February 2008.

I was in global wealth management and operations where I was seeing a lot of terminations and liquidations come flowing in. People just did not trust their money in stocks anymore.

KING: And this job, a vastly different pay scale, but also a very different perspective.

MERLUZZI: It's pretty fun today, huh?

In this world, I'm not able to save any money, living paycheck by paycheck, compared to when I was worked in finance in New York City, it was much nicer. I was making more money, able to put some away. However, my lifestyle over there was a lot more stressful than it is here.

KING: Merluzzi's move from Wall Street to the lift line is in itself a sign of the times.

MERLUZZI: All right, have a good time.

JERRY BLANN, PRESIDENT, JACKSON HOLE MOUNTAIN RESORT: We didn't grow as quickly as we'd like.

KING: In years past is, Jackson Hole Mountain Resort President Jerry Blann often had to seek temporary visas for foreign workers, but not this year.

BLANN: We're staying domestic, 100 percent domestic. This fall, when we had our job fair, we had 500 people show up for essentially 200 jobs and the quality and the educational capability of the people who came in the door was extraordinary.

MERLUZZI: Thank you much.

KING: The recession hit in the middle of a $100 million improvement project, including a new tram to the resort's highest peak, forcing Blann to deal not only with fewer visitors but also with the credit crunch he says continues to hamper businesses.

BLANN: In the midst of all that, we had to do a refinance and we were able to put it together. It was a tough negotiation, it took a long time. It's not back to where it should be and they've got to loosen the reins a lot more.

KING: Still, after a tough 2009, Blann is cautiously optimistic the slopes will be more crowded in the new year, but only if the travel and tourism industry heeds the recession lessens. BLANN: Everybody's looking for that value proposition, and that's just natural. They're asking for deals and they're getting them.

KING (on camera): If you didn't do that, if you were stubborn and said no, this is our profit margin, we're going to keep our profit margin, what happens?

BLANN: Well, obviously you're going to lose volume. And volume for us is key.

KING (voice-over): A snowboard run during a recent visit found only modest crowds, but Christmas week business was up from last year and bookings for the rest of January and February have resort officials optimistic.

MERLUZZI: I think people have been conservative, been holding their pocketbooks pretty close for a while, and I think they're ready to jump out.

KING: John King, CNN, Jackson, Wyoming.

(END VIDEOTAPE)