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American Morning: Wake Up Call
Shut Down Wall Street; Secrecy at Penn State; Gingrich's "Freddie" Ties; Occupy "Day Of Action" Today; Super Committee Blame Game
Aired November 17, 2011 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: From the subways to the stock exchange, Occupy plans to shut down Wall Street today. Police preparing for tens of thousands of people to fill Lower Manhattan this morning.
He's hot (ph) at the top -- Newt Gingrich now facing questions about a $1 million-plus payday from the mortgage giant Freddie Mac.
And if you haven't booked a flight for Thanksgiving yet, do not fret. We have some last-minute travel deals to get you home for Thanksgiving for less.
This is your A.M. WAKE-UP CALL.
(MUSIC)
COSTELLO: And good morning to you. This is your A.M. WAKE-UP CALL for Thursday, November 17th. From the Time Warner Center in New York, I'm Carol Costello.
Here are this morning's top stories. New questions about what police knew and what they knew about it in the Penn State child abuse sex scandal. A coach who's taken a lot of heat for witnessing the alleged sexual assault on a little boy and not reporting it says he went to the cops years ago. But two law enforcement agencies are now saying that's not true.
The Secret Service catching up to the man accused of shooting at the White House with an AK-47 that he left at the scene. One bullet was lodged in a bulletproof window facing the South Lawn.
And severe weather that ripped across the Southeast has killed at least four people. The concern now: there could be more victims beneath the rubble of some homes.
So, let's head to Atlanta and check in with meteorologist Reynolds Wolf.
Good morning, Reynolds.
REYNOLDS WOLF, AMS METEOROLOGIST: Good morning, Carol.
Yes, the Southeast is getting pounded just over the last 24 hours. A very intense line of storms that actually went through parts of Alabama, Georgia, and the Carolinas. One fatality that we know of in parts of Georgia, Suwannee, Georgia, to be more specific.
This gentleman who's driving his SUV and got hit by a branch from a falling tree due to some very strong winds. And then there are three more fatalities in parts of South Carolina, Rock Hill, to be more precise.
Again, as the sun goes up and we got more daylight, we may find unfortunately possibly more fatalities.
A tip line of storm is now moving through parts of central Florida. If you happen to be tuning in from Orlando, perhaps even Gainesville, Florida, you can hear the boom of thunder. The front is going to come through.
The back half of the system is going to be some residual moisture. But at the same time, the shot of cold air that's going to come in and that cold air is going to give you some snow in the highest elevations.
Coming up, we're going to talk about how that's going to affect your travel, not only along parts of the Eastern Seaboard and the Central Plains. And it looks like we have another big storm ramping up in the central and northern Rockies and the Pacific Northwest.
Carol, more on all of that coming up in a few moments. Let's send it back to you.
COSTELLO: All right. Thank you, Reynolds.
WOLF: You bet.
COSTELLO: Lots of new developments this morning in the Penn State sex abuse scandal. And more questions surrounding the man who's become a lightning rod in the case. And it's not Jerry Sandusky.
Right now, it's coach Mike McQueary. He reportedly sent an e- mail to a friend saying he tried to stop Sandusky when he allegedly saw him sexually assaulting a little boy in the shower and that he also went to the cops.
But that's not what the grand jury report says. And now, two law enforcement agencies, Penn State's campus police and State College police, say they have no record of it.
Legal contributor Sunny Hostin from "In Session" on our sister network TruTV, says it's still possible that McQueary is telling the truth, not just trying to clear his name.
(BEGIN VIDEO CLIP)
SUNNY HOSTIN, IN SESSION: Perhaps, Mark, it's possible, because there's been such a cover-up, no report was filed. No report was taken.
MARK GERAGOS, CRIMINAL DEFENSE ATTORNEY: Right. Three police departments decided to deep six the reports.
HOSTIN: There's no transcript out there. There's no transcript for the grand jury yet because, of course, grand jury proceedings are secret. All we have is this presentment, which is basically a summary report. So, it's quite possible that in front of the grand jury, he did discuss his police encounter.
(END VIDEO CLIP)
COSTELLO: In the meantime, a new judge has been assigned to the Sandusky case. The first judge who set bail for Sandusky and allowed him to return home right across from a school, it was revealed she had connections to Sandusky's Second Mile charity.
And this morning, the mother of victim number one in the grand jury report is speaking out. He was the first brave child, now a man, to break his silence. His mother says he's now afraid Jerry Sandusky will walk free and she was pressured by her son's school to keep quiet.
(BEGIN AUDIO CLIP)
UNIDENTIFIED FEMALE: Jerry has a heart of gold. And that I said, listen, I was very upset at this point. You know, I was extremely upset, and I was basically yelling at them that they needed to call the police. I said, I want you to call the police, call Children and Youth, you know, I said, I want you to call the police right now.
And I said it like three times, call the police right now. They said, no. They said, I need to think about the ramifications of what was happening if I did that.
I want Jerry Sandusky to go to jail for the rest of his life. I don't even know, to tell you the truth, at this point, I don't even know.
(END VIDEO CLIP)
COSTELLO: Of course, that was the mother, and her voice has been altered.
Drew Griffin has been reporting on the secrecy of Penn State and broke the story that the university was allowed to keep secret documents that are typically public record just about everywhere else. He went directly to police and officials for answers.
He has the latest from State College this morning.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN SPECIAL INVESTIGATION UNIT: Carol, instead of continuing our look for the records, which we've been told we cannot get, we decided to go searching for the people, the officials who should have known and most likely did know about the allegations, the investigations, and why nothing had been done for so long once these investigations were launched.
The former university president, Graham Spanier, the former university counsel, his name is Wendell Courtney, and the former university police chief, a guy named Tom Harmon. According to the grand jury report, all three of these officials most likely knew a heck of a lot was going on with Jerry Sandusky and these allegations as far back as 1998.
In fact, after that mother accused Sandusky of showering with her son naked in 1998, the former police chief had an investigation going on, but somehow, we're told from that grand jury report, Tom Harmon abruptly stopped that investigation.
Tom Harmon now works for an architectural and engineering firm. They have an office very near the campus here. They do business with the campus. This is what happened when we went and tried to find him.
Is Mr. Harmon in?
UNIDENTIFIED FEMALE: He's not.
GRIFFIN: He's not in?
UNIDENTIFIED FEMALE: He does not work in this office.
GRIFFIN: Oh, he works out of his home.
UNIDENTIFIED FEMALE: Yes.
GRIFFIN: All right. So does he have an office number? I mean, a number that if somebody at this office --
UNIDENTIFIED FEMALE: No, we can't provide that information. Sorry.
GRIFFIN: You can't provide that information?
UNIDENTIFIED FEMALE: No. no.
GRIFFIN: The former police chief did send us an e-mail, Carol, saying that he could not discuss this because of a pending investigation.
We went to the university counsel's office, Wendell Courtney. He was the university counsel back in 1998. In fact, he gave his blessing back in '98 for the investigation of Sandusky.
He is not talking either. In fact, when we went into his office, he actually had an attorney come out and tell us to leave the property altogether.
Graham Spanier -- now, he was forced to resign as the Penn State University president. But he still lives here, lives in the mansion, lives down a private road. He is not talking, not answering any questions.
So, continuing silence here at Penn State University as many people continue to look for answers as to who knew what when and where -- Carol.
(END VIDEOTAPE)
COSTELLO: Thank you, Drew.
Now, another mystery surrounding this case. "The New York Times" reporting this morning that three years worth of files are missing from the charity Sandusky founded for troubled kids. Investigators are worried that that may limit their ability to find out whether Sandusky used charity resources to buy his alleged victims' silence.
New York this morning bracing for what could be an action packed day at Wall Street. Protesters in Lower Manhattan had promised to shut down Wall Street in just a few hours. This afternoon, they plan to take their protest to the subways and then march to the Brooklyn Bridge at 5:00 p.m. Eastern.
They're filled with a little extra anger after being kicked out of their home base in Zuccotti Park earlier this week.
And the eviction of Occupy Dallas is now under way. Police going tent to tent telling people to get out and tearing the tents down.
In San Francisco, police arrested dozens of Wall Street protesters after they occupied a Bank of America branch in the city's financial district.
He's surging in the polls, but now, Newt Gingrich's involvement with Freddie Mac is threatening to stop that momentum. He said some politicians should go to jail for ties to the troubled mortgage giant, but it turns out Newt Gingrich made some big time cash during his stint there.
CNN's Brian Todd is digging deeper on this story.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): Newt Gingrich has had some harsh words recently for politicians who dealt with troubled mortgage companies.
Listen to his comments at a "Washington Post"/"Bloomberg News" debate.
NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: And if you want to put people in jail, I want to second what Michelle said. You ought to start with Barney Frank and Chris Dodd. And let's look at the politicians who created the environment, the politicians who profited from the environment and the politicians who put this country in trouble.
CHARLIE ROSE, HOST: Clearly, you're not saying they should go to jail?
GINGRICH: Well, in Chris Dodd's case, go back and look at the Countryside deals. In Barney Frank's case, go back and look at the lobbyists he was close to that -- that -- at Freddie Mac.
TODD: But there are new questions about Gingrich's own connections to Freddie Mac. CNN has confirmed from sources in position to know, information first reported by "Bloomberg News" that Gingrich was paid between $1.6 million and $1.8 million for two separate stints at Freddie Mac -- from 1999, when he left Congress, to 2002, and from 2006 to 2008.
Asked if the money figure was accurate --
GINGRICH: I don't know. We're going back to check it.
TODD: What did the Republican hopeful do for Freddie Mac?
Gingrich said at one point, he offered advice as a, quote, "historian," telling Freddie Mac officials that lending to people with no credit history was a mistake. He later said he was a strategic adviser.
Contacted by CNN, four people who worked for Freddie Mac while Gingrich was there disagreed with his characterization that he was a historian. One said his role was strategic, specifically political strategy.
Bloomberg cites former Freddie Mac officials familiar with Gingrich's work in 2006, saying the former House speaker was asked to build bridges to Capitol Hill Republicans.
I spoke with Bob Edgar of the liberal group, Common Cause, which advocates for more transparency in government.
(on camera): What does that seem like to you?
BOB EDGAR, COMMON CAUSE: When you're paying over a million dollars to build bridges with Capitol Hill, you're buying a lobbyist. You're buying somebody with your money that can connect you with members of Congress.
You don't hire a historian to do that. You don't hire someone just to give you polite advice. You hire somebody who makes those relationships work.
And that's lobbying. Whether you're registered or not, that's hardcore lobbying and that's what Newt Gingrich was doing.
TODD (voice-over): A characterization Gingrich formally denies.
GINGRICH: I did no lobbying of any kind.
UNIDENTIFIED MALE: Did you --
GINGRICH: That's all I've got to say about it.
UNIDENTIFIED MALE: Did you accurately characterize it -
GINGRICH: That's all I've got to say about it.
TODD: It would not have been illegal for Gingrich to have lobbied for Freddie Mac unless he did it that first year he was employed by them, 1999 to 2000. Asked if he would make public the records of his work for Freddie Mac, Gingrich said he would, to the degree he can.
(on camera): We checked federal records and found nothing indicating Gingrich was a registered lobbyist.
Freddie Mac would not comment on any of this, other than to say Gingrich was a consultant but did not lobby for them.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: And still to come at this hour, search teams are in high gear after a string of deadly storms hit the Southeast.
And Benetton creating controversy once again. Some are saying it went way too far with this new campaign ad. Wait until you see it.
And, are you playing this Thanksgiving holiday? When we come back, find out if your airport made the "Daily Beast's" list of the worst airports in America.
Twelve minutes past the hour. This is your A.M. WAKE-UP CALL.
(COMMERCIAL BREAK)
COSTELLO: It is 15 minutes past the hour. This is your A.M. WAKE-UP CALL.
Here's what's all new this morning:
New developments in the Penn State sex abuse scandal. In an e- mail, assistant football coach Mike McQueary wrote, he filed a police report right after allegedly witnessing Jerry Sandusky sexually abusing a boy in the shower. But two are police departments now say they have no record of any report.
And arrest in the White House shooting probe. Police tracked Oscar Ortega-Hernandez to a hotel in western Pennsylvania. He is suspected of firing an AK-47 at the White House on Friday. Two bullets were discovered, one stuck in bulletproof glass; the other on the outside of the mansion. No one was hurt.
And turkey day is almost here. That means we're getting into the holiday travel season. If you plan to use Chicago's O'Hare Airport, be prepared for some major league headaches. "The Daily Beast" ranks it as the worst airport in America. That's based on delays, comfort and security, and wait time.
Rounding out the top five: Newark Liberty in New Jersey, JFK in New York, William Hobby in Houston, and LaGuardia, also in New York City.
Let's get a check of today's weather. Let's head to Atlanta and check in with Reynolds Wolf.
WOLF: Good morning.
We're keeping a sharp eye on some of the expected delays we're probably going to see around the country. It looks like there's going to be plenty along the Eastern Seaboard. In fact, as you take a look at these maps, you're going to see that a lot of delays are going to stack up in New York and Philadelphia, delays possibly over an hour.
Now, in Boston and in Washington, D.C., showers, some low clouds might keep you grounded. In Atlanta, the rain is moving out. However, we've got some issues with low clouds. The wind is actually expected to pick up in the afternoon.
And temperatures are going to be some 20, even 30 degrees cooler in parts of the Southeast. And Tampa, Orlando, and Miami, they're dealing with thunderstorms as we speak and will through a good part of the morning, hence the delays.
And then, out to the West, San Francisco, we're talking about low cloud activity. Central coast California southward to L.A., you may have some issues with the marine layer. So, before all is said and done, we may have to throw LAX into the mix also.
Now, in terms of your forecast, again, we're looking at that area of low pressure, that long frontal boundary extending all the way from the Northeast down to the Gulf of Mexico to drift its way towards the east. Right behind it, high pressure is going in. And with that, just a shot, a big shot of cool air that's really going to drop these temperatures down.
As that moves out, we've got a big storm coming in from the Gulf of Alaska, it's going to be a rain maker. And not only that, but a snow maker in parts of the Rockies. You could see several feet of snow before the weekend is out.
Sixty-nine degrees is the high in Denver, 61 in San Francisco, 43 in Seattle, 66 in El Paso, 52 in Memphis, up by Beale Street, 65 in the Big Easy in New Orleans, Miami with 85. and New York, 48, your expected high for the day today.
Again, I wish I had better news about those potential delays. But if you're heading out to any of the major airports in New York or even over towards Jersey and Newark, be patient. It's going to be a long wait.
COSTELLO: Well, at least you've warned us. And we'll be ready.
WOLF: Hey, and isn't knowledge half of the battle? Now you're prepared, you're good to go.
COSTELLO: Oh, yes. That will make things so much easier.
WOLF: Exactly.
COSTELLO: Thank you, Reynolds. We appreciate it.
WOLF: You bet.
COSTELLO: Early morning gunfire in Syria's capital comes as international leaders put the pressure on Syria's president to stop the crackdown against protesters. This could mean a turn for the worse in Syria. Until now, most of those protests have been peaceful.
So, let's head round the world and bring in Zain Verjee. She's live in London.
Tell us more about the situation in Syria, Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Good morning to you, Carol.
Well, the focus right now is on the diplomatic situation where the Arab League has basically told Syria we're going to give you three more days. Stop, end this brutal crackdown, otherwise, there will be consequences. They want to kick Syria out temporarily from the Arab League.
And also, what they're saying is they want to put something like 500 observers from that organization on the ground in Syria to determine exactly what is going on. I mean, we keep getting pictures like this, but it's very difficult for CNN and other news organizations to verify the reports that we're getting because Syria has not allowed western and international news organizations, or Arab television channels, for that matter, on the ground.
The other situation is that today, there were explosions in the capital of Damascus reportedly followed by gunfire. We're trying to figure out exactly what's going on. But definitely, there's a lot more pressure on Syria right now. The question is what will Bashar al-Assad do -- Carol.
COSTELLO: Yes, the world is watching.
Let's talk about Benetton now and its latest advertising campaign because it's made the Vatican mad.
VERJEE: It really made the Vatican livid. Just -- this picture just says it all. Take a look at it. There were a few with various world leaders there kissing one another.
You've got Sarkozy smooching Merkel. You've got Hu Jintao and Obama.
But this is really what outraged the Vatican. Pope Benedict XVI kissing an imam from Egypt. The Vatican has condemned it. They've ordered that Benetton pull this ad.
They said these images were doctored, which they are. And the Vatican is saying that this was an unacceptable use of the Holy Father's image. So, Benetton said they're sorry for being offensive here, and that they will pull the pope-imam kissing ad.
The other ones are out there. But the point is, this has already flashed all around the world, and Benetton, as it always does, pushing the envelope -- Carol.
COSTELLO: Yes, I like how you said these pictures doctored -- yes. All righty then. Thank you, Zain. We appreciate it.
Still ahead on A.M. WAKE-UP CALL. We're getting a real sum of what it will cost if new gas mileage rules go into effect for new cars.
Twenty minutes past the hour. This is your A.M. WAKE-UP CALL.
(COMMERCIAL BREAK)
COSTELLO: A steep drop in stocks following the final hour of trading. All three U.S. markets closed down yesterday, the Dow plummeting 191 points.
Now 23 minutes past the hour. Welcome back to your A.M. WAKE-UP CALL.
So you might want to check your 401(k) this morning. Big banks took that big hit yesterday follows a dire warning of exposure of U.S. banks to the crisis going on right now in Europe, something we keep hearing and hearing and hearing.
So, let's bring in Christine Romans. How serious was this newest warning?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Pretty serious. I mean, this is Fitch, the ratings agency, saying, even though many of the banks have been limiting, Carol, their exposure to the sovereign debt crisis, that there are still lots of ways it could hurt them.
For U.S. banks in particular, it could be the loss of business. If you have a financial crisis in Europe and you have Europe falling back into a recession, that means less business for American banks, and it means less (AUDIO BREAK) business in Europe, and that could hurt U.S. banks.
Also, if you have a situation -- and you know that Ali and I have talked about this a lot -- if you have a situation where the lending markets are starting to freeze up like we saw back in 2008 and that's a real concern here, that's the life blood of the banking system. That's another way it could hurt U.S. banks even if they don't have super direct exposure to some of the problems with the sovereign debt.
French banks seem to be the most exposed at this point. They own an awful lot of Italian debt. We're watching Spain right now, borrowing costs in Spain are going up. That's putting pressure on that government to borrow money and also on the banks, the people who hold that debt.
So, this is a crisis. You know, even traders are telling us that they have headline fatigue because every day, they're looking for the next little bomb that's going to go of about where we are in this debt crisis.
But this is a dangerous situation, and Fitch just the latest to weigh in and say this could be troublesome for banks. Bank stocks did terribly at one point yesterday. (AUDIO BREAK) was down 8 percent. You don't see a stock move 8 percent in one day.
Some of the American banks have been cut in half so far this year in part because of concerns about just the health of the sector in Europe, Carol.
COSTELLO: Gotcha.
Let's talk about the new proposed federal gas mileage rules because, if these go into effect, this could mean, well, the price of certain cars go up.
ROMANS: That's right. I mean, it costs money to make cars more fuel efficient. I mean, think about to those days -- remember those belching, fuel guzzling cars of the 1970s. We've made a lot of progress, and the EPA moving forward and the government moving forward to continue to make progress.
The goal for these new fuel economy standards, raise the average miles per gallon to 35.5 by 2016. Increase to 54.5 by 2025. That means vehicles are going to cost 3 grand more. But, Carol, over the lifetime of a car, you'll save $6,600 on fuel costs.
So, the idea is you pay more up front, it's more fuel efficient, but you'll save more on gas prices longer term -- Carol.
COSTELLO: All right then. I'll see you in, what, about a half hour. Thanks so much, Christine.
Still ahead, will you raise my taxes, please? It's something you don't hear on Capitol Hill very often, but a group of millionaires are begging lawmakers to make them pay more. You will hear from one of those millionaires.
And today marks two months for Occupy Wall Street protesters, and they're promising to make it unforgettable.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
NEWT GINGRICH, (R) PRESIDENTIAL CANDIDATE: But I did no lobbying of any kind. That's all I've got to say about it. That's all I've got to say about it. COSTELLO (voice-over): The frontrunner now feeling the heat. Newt Gingrich facing questions about a million plus dollar payday from the mortgage giant. This is your A.M. WAKE-UP CALL.
(END VIDEO CLIP)
COSTELLO (on-camera): And good morning to you. It is Thursday, November 17th. I'm Carol Costello. Here are this morning's top stories.
It's the two-month anniversary of Occupy Wall Street. Protesters plan to mark the occasion with a shut down Wall Street breakfast in just over an hour. Also this afternoon, they plan to occupy the subways. Then, at five o'clock eastern, a march from Foley Square to the Brooklyn Bridge.
The U.S. energy secretary in the hot seat today. Steven Chu faces a House panel looking into Solyndra, the California company touted by the Obama administration that received $535 million in federal loan guaranties and later went bust. The question, were those loan guarantees politically motivated?
Nasty weather in the southeast. At least three people were killed in York County, South Carolina. A number of homes destroyed. One man was killed in Georgia when a tree fell on his SUV. Four people injured in Mississippi. Damage also reported from Louisiana to Virginia. So, is it over? Let's head to Atlanta to find out. Good morning, Reynolds.
REYNOLDS WOLF, AMS METEOROLOGIST: It does look as though the situation is going to be better as we make our way through the mid hours. But now, the cleanup is going to begin. I got to tell you, Carol, it's going to be a messier in parts of the Carolina, certainly here in Georgia we've had some damage. Even in parts of Alabama near a town called Opelika outside of Auburn, there was some damage there also.
Now, we're seeing the (INAUDIBLE) system driving into way of the sunshine. State of Florida, heavy rain along portions of I-75. Anyone tuning in on satellite radio needs to be prepared for that. I'd say within the next half hour, it's going to be moving along the I-4 corridor and into 95. Be ready for all of it.
The big weather maker to wrap things up is playing the agency (ph). It's his big area of low pressure that we see. It is going to be drifting its way through parts of the eastern seaboard. Right behind it, that big shot of colder air. And in the Pacific Northwest, we've got a big winter storm coming in that may bring several feet of snowfall to parts of the central and Northern Rockies.
We're going to talk more about that coming up this morning and we're also going to mention a future (ph) delays that's a moments away. Back to you, Carol.
COSTELLO: All right. Thank you, Reynolds. We appreciate it. Happening right now, we just got word that President Obama has arrived in Bali. This happened just a few minutes ago. You see, we're awaiting to disembark from Air Force One. the president had been in Australia talking about putting more troops in that area, because he feels there should be a troop buildup in that part of the world in order to compete better with China.
We'll see what he says in Bali when he takes to a podium, if he does. Of course, we have reporters traveling with the president. If the president speaks, we'll, of course, send his remarks your way.
Also in the news this morning, New York bracing for what could be an action packed day at Occupy Wall Street. Today marks the two-month anniversary of the movement. Protesters in Lower Manhattan have promised to shut down Wall Street this morning.
This afternoon, they plan to take their protests to the subways and then march to the Brooklyn Bridge at 5:00 p.m. They're filled with a little extra passion after being kicked out of their home base in Zuccotti Park earlier this week.
The so-called super committee now with less than one week to reach a deal. One of the big sticking points is raising taxes on the wealthy. Here's something you don't hear every day. Some of the rich are now begging Washington to take their money. More from CNN's Kate Bolduan.
(BEGIN VIDEOTAPE)
KATE BOLDUAN, CNN CORRESPONDENT (voice-over): These millionaires are on Capitol Hill demanding the super committee do something most Americans would not ask for, tax them more.
DOUG EDWARDS, FORMER GOOGLE EXECUTIVE: We challenge the millionaire politicians who oppose paying higher taxes to consider for a moment how much their country has done for them.
CHARLIE FINK, FORMER AOL EXECUTIVE: We hope our fellow citizens will seriously consider rejecting any deal the committee makes that does not include an increase on taxes on incomes over a million dollars.
BOLDUAN: Charlie Fink, a former AOL executive, is one of the millionaires lobbying for higher taxes to help pay down the deficit. They took their pitch directly to lawmakers, meeting with Democratic and Republican members and their staffs.
(on-camera) Why do you feel like you need to step up to make that declaration to the Super Committee right now?
FINK: Because that's what we've been doing in this country for the past ten years is madness. You don't have to be a businessman or a millionaire to know. The first thing to do when you're in a hole is to stop digging. Revenue has to be part of any agreement the Super Committee reaches. BOLDUAN (voice-over): Fink was joined by about two dozen other millionaires, all part of a group called patriotic millionaires for fiscal strength. They want the Super Committee to let the Bush era tax cuts expire for wealthier Americans as a way of reaching the required minimum of $1.2 trillion in deficit savings over ten years.
(on-camera) One argument that many Republicans make is they do not want to raise taxes on job creators. It will hurt job creation. You don't agree with it.
FINK: I think that's a lie.
BOLDUAN: You think that's a lie?
FINK: It is a lie. I've worked for big fortune 500 companies. I work for a little startup today. And every consideration regarding an employee had to do with the demands for our product and services. It had nothing to do with taxes.
BOLDUAN: While they are definitely grabbing attention, the millionaires who came up here are not likely to win over many Republicans who have long opposed such tax increases. The reality for the Super Committee, members continue to negotiate behind closed doors
Both sides insist they are still talking, but the group has not reached agreement, and we are now a week away from the Thanksgiving deadline.
Kate Bolduan, CNN, Capitol Hill.
(END VIDEOTAPE)
COSTELLO: As for the Super Committee, Republicans just said no to the latest Democratic proposal over taxes. The congressional committee has until Wednesday to come up with a plan for at least $1.2 trillion in deficit cuts. Failure will trigger across the board budget cuts and will lead to rising interest rates.
Republican presidential hopeful, Newt Gingrich, is on the defensive about his prior business relationship with Freddie Mac. CNN confirms the mortgage giant paid Gingrich's consulting firm more than $1.5 million. Here's Gingrich in his own words denying he was ever a lobbyist.
(BEGIN VIDEO CLIP)
GINGRICH: But I did no lobbying of any kind. That's all I've got to say about it. That's all I've got to say about it.
(END VIDEO CLIP)
COSTELLO: OK. He just said no. Let's dive right into this with senior political writer, Maggie Haberman. She's joining me by phone. Maggie, good morning.
VOICE OF MAGGIE HABERMAN, POLITICO.COM: Good morning. So, was Newt Gingrich lobbying for Freddie Mac or was he a historian, as he has asserted?
(LAUGHTER)
HABERMAN: You know, I think being a historian is somewhat in the eye of the beholder. I think the problem for Newt Gingrich is that lobbying becomes something as a fungible word. He, you know, was not lobbying in the sense that Freddie Mac also says, no, we did not hire him to do that, but he was giving what has now been described belatedly as strategic advice.
The problem is that every time Newt Gingrich reminds voters of his long ties to Washington, of a more than $1 million fee, which is obviously a lot of money, especially as people are reminded in this economy, it reminds voters what they didn't like about Newt Gingrich before and what were questions for him before in May when his campaign collapsed.
He had a collapse so long ago that he is able to try to come back and rebuild, and he certainly has been effective at it. He has stayed trudging through the summer when, frankly, most political reporters were questioning why he was even still bothering. And look, now, here he is up at the polls again getting another look.
But I do think that the better Newt Gingrich does, the more you're going to see scrutiny of stuff like this and the more voters are going to be reminded of problems that he has.
COSTELLO: Well, he's trying to portray himself as this Washington outsider, but he hasn't actually lived outside of Washington for more than 30 years.
HABERMAN: That's right. And that, you know, he had a very interesting line last night on the Mark Levine show talking about this very issue, this Freddie Mac fee, where he described it as, you know, a contract over many years for which he was paid a standard Washington fee.
I think that is a phrase that he may end up regretting using because standard and Washington are two things that the Republican base is very, very exercised against right now and sort of reminding people, as you said, that this is where historically he comes from at this point. He has been a creature of Washington for a very long time.
You actually had Jack Abramoff criticizing him yesterday on "Meet The Press," which was really quite a moment. So, I think that the more you see, you know, Newt Gingrich having to deal with this, the more questions that come up about it, the less he is able to just put it to bed, it will start to hurt him.
COSTELLO: Maggie, just a brief question about -- are you still there?
HABERMAN: I'm here. COSTELLO: Oh, good. I was just going to ask you a brief question about the other candidates, because they seem to be falling. Newt Gingrich seems to be rising. I mean, Mitt Romney, he's still on top, but he still hasn't cracked that 30 percent figure in approval ratings. So, should Mitt Romney come out and campaign stronger, especially in Iowa where the caucus is fast coming up?
HABERMAN: Well, you know, it's very funny, you're seeing Iowa governor, Terry Branstad, took a really, really hard swing at Mitt Romney over this yesterday, over suggesting that, if he really skips Iowa, it's essentially at his own peril, and that what could end up happening to Mitt Romney could be the same fate that Rudy Giuliani met four years ago.
You know, I don't think that they are similar, Rudy Giuliani and Mitt Romney for a couple of reasons. One of which is that Mitt Romney campaigned very aggressively in Iowa in 2007. And he is a known quantity there because he spent so much money. Rudy Giuliani never really played in Iowa.
Though, I don't think that you can make them comparable, but for him to even invoke such an image is not a good thing for Mitt Romney. It's somewhat damaging. It conjures up a lot of memories of not only Rudy Giuliani's campaign, but reminds people that Mitt Romney is something that an east coast moderate, you know, a term that his supporters don't particularly like.
Though, he is definitely about to take a gamble one way or the other. If he does go into Iowa, he could end up getting rejected the harder he plays. If he loses and has actively campaigned, that will clearly be used against him to portray a sign of weakness.
If he doesn't go in and campaign and there is this opening because of this unsettled conservative field, then he could have a problem on that end. So, I think that you will see in the next two weeks or so a real clear sign of which way Mitt Romney is headed with regard to Iowa.
COSTELLO: Maggie Haberman for Politico, thanks so much for joining us this morning. We appreciate it.
The next Republican debate, by the way, will be on national security, and that will come your way Tuesday, November 22nd, at 8:00 p.m. eastern. Candidates will take on big issues like homeland security and foreign policy, Tuesday, November 22nd, 8:00 p.m. eastern right here on CNN.
It's 41 minutes past the hour. Let's get a check of what's coming up at the top of the hour on "American Morning." Christine joins me again. Good morning, Christine.
CHRISTINE ROMANS, CNN ANCHOR: Good morning, Carol. Coming up in about 20 minutes on "AM," trying to prevent doom's day in Detroit. Mayor Dave Bing asking unions and city leaders for sacrifice to save that city. He's going to joins us live. From the subways to the Brooklyn Bridge to the stock exchange, occupy plans to shut down Wall Street today. We're going to ask deputy mayor, Howard Wilson (ph), whether the city is ready.
And Kareem Abdul-Jabbar, the NBA's all-time leading scorer and cancer survivor. He's in town for a tournament that combines his two passions, hoops and cancer research. The living legend is going to stop by in our eight o'clock hour. Those stories and more coming up in about 20 minutes. You're A.M. WAKE-UP CALL continues after this very quick break.
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COSTELLO: It is 45 minutes past the hour. Here's what's all new this morning.
New developments in the Penn tate sex abuse scandal. In an e- mail, assistant football coach, Mike McQueary, wrote that he filed a police report right after allegedly witnessing Jerry Sandusky sexually abusing a boy, but two area police departments say they have no record of any report.
An arrest in the White House shooting probe. Police tracked Oscar Ortega Hernandez to a hotel in Western Pennsylvania. He's suspected of firing an AK-47 at the White House on Friday. Two bullets discovered. One stuck in bulletproof glass, the other on the outside of the mansion. No one was hurt.
The Transportation Security Administration may be scrapping plans to study the health risks of airport body scanners. Officials say a soon to be released inspector general's report finds the machines are not harmful. So, a new study is not necessary. The scanners emit small doses of radiation.
And unusual scene on an Arizona freeway. Check it out. An elusive Yorkie Pup makes a mad dash in the middle of traffic, several police officers in hot pursuit. The dog had jumped out of the owner's car after it crashed. Eventually, the cops were able to snag the dog. And, yes, the dog is perfectly fine this morning.
(LAUGHTER)
COSTELLO: So a happy ending --
(LAUGHTER)
COSTELLO: That's such a funny image.
WOLF: I'm sure they gave him a ticket too for being in the HOV lane. I mean, come on. Unless, he's got some fleas on him or something, it's not -- he doesn't qualify for HOV. I don't know what the speed is for Yorkies, but ole, check it out. He looks like more of a matador there.
(LAUGHTER)
WOLF: That is unbelievable.
(CROSSTALK)
WOLF: Come on, come on.
COSTELLO: Oh, look at my little puppy.
WOLF: This is called beautiful television. Unbelievable.
COSTELLO: This is the kind of chase scene I like.
WOLF: Wow! You know, let's switch gears a little bit, if we can. Let's go from the doggy news to some weather stuff.
(INAUDIBLE) some tough times. It's going to be a day for the dogs in parts of New York where you're going to be dealing with some major delays and all your huge airports, in JFK, LaGuardia, even over in Newark, you're going to have some backups. You may be on the tarmac for an hour or so. So, just be patient.
Showers are moving out by late in the afternoon. By tonight, (INAUDIBLE), say, by 6:00 p.m., you should be just kosher. Meanwhile, for Boston, for D.C. metro, showers, low clouds. In Atlanta, the rain is gone, but low clouds remain, and the wind is going to pick up. So, you might need some backups there.
Tampa, Orlando, Miami, thunderstorms, and then out in San Francisco, some low clouds. What's interesting is out in the Pacific Northwest, you may have some travel delays. If you are driving, say, on parts of I-15, maybe even I-5, you're going to be dealing with some strong wind, and not only that, some heavy snow, especially out towards Spokane into Great Falls, up towards Montana and Billings.
Very rough winter weather. Salt Lake City, you can expect some snowfall there, but up in Snowbird, you may get up to say one or even two feet of snow before the weekend is out. That's a quick snapshot of your forecast. Let's send it right back to you. Great dog video. You've got to love that.
(LAUGHTER)
COSTELLO: I know. I hope we show it again later. That's terrific.
WOLF: I'm sure we will.
COSTELLO: Yes. Thank you, Reynolds.
WOLF: You bet.
COSTELLO: It is the two-month anniversary of the occupy movement, and the countdown is on. It will be about an hour before protesters are planning to take over Wall Street. Here's WABC reporter, Kemberly Richardson. She's live in New York for us. What's going to happen, Kemberly? KEMBERLY RICHARDSON, WABC REPORTER: Good morning, Carol. Right now, things are pretty quiet. There are only about two dozen protesters here in the park along with private security. But, again, as you mentioned, we do expect in the next hour or two for that number to swell. The planned today, 7:00 a.m., the protesters plan to essentially storm Wall Street, right around the corner from here.
That will be a first for the protests. They're hoping to disrupt things on the trading floor in time for the ringing of the bell at 9:30 this morning. From there at three o'clock, they will gather at 16 key subway stations here in New York City throughout the five boroughs and take to the trains, make their case to folks there.
And then at five o'clock, they will meet at another park here in Manhattan. They will then march to city hall and then across the Brooklyn Bridge -- Carol.
COSTELLO: So, when they try to march across the Brooklyn Bridge -- I think it was about a month ago. That caused a lot of trouble, and there were many arrests made. How are police handling all of this?
RICHARDSON: They may be promising, the protesters, a day of chaos today, but the city and the NYPD is not taking it lightly. Today alone, they said they're adding an additional 1,000 officers for each shift. We've already seen that out here. The barricades are up, and they're not taking it lightly.
COSTELLO: I bet not. Kemberly Richardson from WABC reporting for us live this morning. Thank you.
Still ahead, holiday travel season is here, and if you're behind on booking your Thanksgiving trip, no worries. We have some tips on how to find those last-minute deals. Really. That's coming up.
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COSTELLO: The Macy's Thanksgiving Day Parade is a national tradition, and this year, you can expect to see some brand-new additions. Macy's unveiled some of their newest floats and balloons. So, check out Gazer, the 35-foot elf that delivers wishes to Santa in the North Pole. And, the NHL float, a frozen pond showcasing children skating and practicing their hockey moves. That will be the 85th annual parade.
Thanksgiving Day just one week away, and if you're still looking to snag a last-minute travel deal, we know just the right person who might be able to help. Gabe Saglie, a senior editor with travelzoo.com. Gabe, you're here just in the nick of time. So, I just can't believe there are still good deals out there.
GABE SAGLIE, SENIOR EDITOR, TRAVELZOO.COM: Well, you know, yes. I mean, for my fellow procrastinators out there, we certainly are pushing it, but you know, the trick with finding a last-minute deal, particularly airfare, that's the big thorn in our side this holiday season. You know, airfare is really trending about 10 percent to 20 percent higher this holiday season over last year.
So, the trick, really, is flexibility. And the deal is if most of us going to want to fly on Wednesday next week and come back on Sunday, and that's where the fares really will be the highest. The airports will be the most busy. So, the flexibility is going to be your friend. For example, I was checking just about 20 minutes ago how fares look for that very busy period next week.
For example, from L.A. to New York flight out of L.A.X. Wednesday coming back on Sunday or Thanksgiving, will run you about $1,500 on United Airlines. Now, if you go out of Burbank instead, so you're going to also get an airport out of L.A., that rate fare drops about $600, $650 for that alternate (ph) fare.
So, an alternate airport, locate at some of these alternate smaller regional airports can save you some money. And if you change your travel day on Virgin America, fly out, for example, from L.A. to New York next Wednesday, you're looking at about a $500 fare, but if you fly out Thursday morning, Thanksgiving Day, that fare drops to $149.
So, fly out on Thursday, coming back out on Tuesday or Wednesday after Thanksgiving, again, the fare drops dramatically. So, flexibility at this point will be your friend if you're looking for airfare deals.
COSTELLO: Choose your days wisely. Choose your airports wisely. So, is there some site where people can go to find some great deals?
SAGLIE: Well, certainly, ours at travelzoo.com, we've got a lineup there of last-minute airfare deals. Most airfare bargains are released Tuesday into Wednesday morning. So, just this week, we saw the latest airfare sales released this past Tuesday. They were matched by competitors Tuesday afternoon into Wednesday.
If you're really a major hard-core procrastinator, you want to fly by the seat of your pants next Tuesday into very early Wednesday morning of next week, that's when, you know, the very late, late last- minute bargains will pop up. And again, that's where you're basically flying wherever's available.
You may have a couple of connections you're not so happy with, but that's where you'll find a couple of deals. And Carol, where the deals will be found is where, you know, you're not going home for the holidays. Big city hotels, for example, will be at a major bargain next week over the holiday period.
Fair Mont in San Francisco, $179 over the period. The "W" New York near Battery Park, $199 with a room upgrade over Thanksgiving weekend. That's a hotel that's charging $300 to $400 just this week. So, the bargains will exist in big city hotels and also kid friendly destinations like Southern California and Orlando, Florida.
COSTELLO: Great. So, thank you so much. You've given me hope because I am a hard-core procrastinator. Gabe Saglie with travelzoo.com, thanks so much for joining us this morning. We appreciate it.
That's it for this Thursday edition of A.M. WAKE-UP CALL. "American Morning" continues right after a break. You have one great day.
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