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Continuing Coverage of the Republican Convention; Tracking the Latest Atlantic Storms; Kwame Kilpatrick in Court Again
Aired September 04, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: And good morning from the CNN Election Center. I'm Soledad O'Brien with continuing coverage of the 2008 Republican convention which is taking place in St. Paul, Minnesota.
Partly cloudy in the twin cities today, everybody is talking about Hurricane Sarah though. Sarah Palin, John McCain's new running mate is already causing a big stir. Early reaction this morning from her Democratic counterpart, Joe Biden. Listen.
(BEGIN VIDEO CLIP)
SEN. JOE BIDEN (D), VICE PRESIDENTIAL CANDIDATE: I didn't hear the phrase middle class. I didn't hear a single word about health care. I didn't hear a single word about helping people get to college. I didn't see a single word or phrase about how to deal with the retirement security for people and social security. I didn't hear the word Afghanistan or Pakistan mentioned, where the terrorists live, I mean, where al Qaeda is.
(END VIDEO CLIP)
O'BRIEN: Well, certainly Joe Biden didn't love the speech, but there were plenty of people in that convention hall who say it was a home run. In just a minute, we're going to get a look at some of the highlights of the speech, also take a look ahead to John McCain's speech, which is expected tonight.
We'll check in with Jessica Yellin right after this short break. Stay with us.
(COMMERCIAL BREAK)
TONY HARRIS, CNN ANCHOR: And good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.
You'll stay informed all day. Here's what's on the rundown for you.
Hanna swamps Haiti and takes aim at the Carolinas today. Plus, Ike grows into a dangerous hurricane. Gustav evacuees returning to damaged homes today. Time to make the insurance claims. Tips to make that process a little smoother.
The embattled mayor of Detroit. Live pictures now. A possible plea deal. His former chief of staff there pictured, Christine Beatty. Kwame Kilpatrick, is he headed out of office today, Thursday, September 4th?
You're in the CNN NEWSROOM.
And it is decision day for embattled Detroit mayor Kwame Kilpatrick. A live picture now at the Wayne County Circuit Court. A court hearing scheduled to begin at some point today. Although what we might be looking at here is the better guidance might be a docket conference. Maybe that's what's going on right now.
We're watching for a possible plea deal on charges stemming from a sex scandal. You're looking at Kwame Kilpatrick's former chief of staff, Christine Beatty. Christine Beatty as you know is the woman on the other side of this sex scandal, the scandal over text messages. These messages between Kwame Kilpatrick and Christine Beatty, romantic in nature to say the least. The "Detroit Free Press" reports a deal was in the works to have him plead guilty to felony counts of perjury and obstruction of justice. Kilpatrick would resign as part of that deal.
Let's talk about it. Double trouble in the tropics to be sure. Two storms gaining strength and attention this morning. First Hanna. It could hit the U.S. tomorrow and the Atlantic coast is scrambling to get ready. The storm already a killer, more than 60 people are dead as massive flooding sweeps across Haiti. On Hanna's heels and an even more powerful storm, Ike, roars through a fearsome Category 4 hurricane.
Our weather team following both of these developing storms. CNN meteorologist Rob Marciano, the man here. Great job last week, Rob, in the weather center. Great job with Gustav. What's the latest with Hanna? And then, I guess, we can follow up with Ike.
ROB MARCIANO, CNN, METEOROLOGIST: Yes, OK. By the way, Gustav still hanging around just a little bit as far as rainfall goes. Well, let's deal with Hanna, let's deal with Ike, which is here. Look at that eye, my goodness, that is a powerful storm, Category 4. Tropical Storm Hanna right now, just that, almost at a hurricane with winds at 70 miles an hour. It's not looking that impressive on the satellite picture. The southwest quadrant not all that impressive. It looks more like a tropical storm but we think it will get into these warm waters, maybe get into a little bit more in the way of moist air there and get over the Gulf stream and maybe blossom into a Cat 1. So that's the forecast. Category 1 storm.
Charleston almost out of the cone here. The forecast models really getting in a nice agreement of somewhere between Myrtle Beach and Cape Hatteras. Landfall as a Category 1 tomorrow night into Saturday morning. So folks in the Carolinas certainly ramping up their preparations for this potential storm. These storms can certainly recurve completely out to sea, maybe just skim the outer banks. That might be the ideal scenario at least for South Carolina and Wilmington. But we'll have to wait and see if that actually happens. Right now, the forecast is for it to make landfall.
All right. Ike, a Category 4 storm, winds of 145 miles an hour. This thing is a beast. It's heading west-northwest right now at 17 miles an hour, then it threatened to go a little bit southwest and then get into the Bahamas by the beginning of next week as a Category 4 storm. Now, these things when they really blossom this far out, sometimes they have a tendency to possibly weaken before they make landfall. Also, if it gets into Hanna's wake here where the waters would then be churned up and a little bit cooler, that may knock it down. So those are some of the hopes. But right now certainly Miami entering that cone in the latter days of the forecast period, and that certainly is a scary topic of conversation.
Tropical Storm Josephine way out there. Just a tropical storm. We won't have to deal with her for several days if not over a week. Might not have to deal with her at all, maybe she'll be a fish storm and stay out to sea. We mentioned Gustav or what's left of it. Still a lot of moisture with this, slamming into a pretty strong late summer cold front that's squeezing some of this moisture out from Chicago all the way down -- well actually, some moisture coming in off the Gulf of Mexico into southeast Louisiana.
If that's not insult to injury, Tony, a little bit of thunderstorm activity between Baton Rouge and New Orleans. They're picking up the pieces as you know from Hurricane Gustav.
HARRIS: Well, I was wondering when that storm would reach into the upper currents here and get pushed as we know those storms generally speaking move from west to east.
MARCIANO: Right.
HARRIS: And it looks like it's happening.
MARCIANO: Yes. It's happening. At least the moisture part of it, and rainfall heading into the Mississippi Valley.
HARRIS: Appreciate it. Thank you, Rob.
MARCIANO: All right. Tony.
HARRIS: The East Coast looks to the horizon. The Gulf coast simply seeking a return to normal. Here is a look at the aftermath of Hurricane Gustav by the numbers. More than a million homes and businesses are still without electricity and predictions are pretty grim. Officials warn it could take a month to fully restore power in New Orleans. The Army Corps of Engineers say it has inspected more had than 200 miles of levees. Imagine that, their conclusions, most of the partially rebuilt levee system remains intact. Good news there.
And the floodgates have opened for returning evacuees. An estimated two million people fled their homes before the storm. What are the evacuees facing as they return home? CNN's Susan Roesgen is in New Orleans.
Well, Susan, good to see you again. I know, we know, that they're facing, A, a lack of power and, B and C, maybe some of the staples like food and water. SUSAN ROESGEN, CNN CORRESPONDENT: Yes. A little bit of water. A lot of power out, Tony. But then there's this house that we found. An oh, ye of little faith, Tony Harris. We showed you this house last hour. This house which either -- perhaps it was a straight-line wind, a mini tornado that spun off Hurricane Gustav or maybe the hurricane itself, but Tony you said to me, they can't fix that thing. I said, oh, they'll push it back up. That's not what they're going to do.
HARRIS: Right, right.
ROESGEN: I just talked to the owner. You know what he is going to do? You know, how he is going to fix it, Tony?
HARRIS: What is he going to do?
ROESGEN: They're going to put straps around it and pull it up. They're not going to push it back up. They're going to pull it back up. The guy I talked to is not out back drinking a bourbon, drowning his sorrows in bourbon. In fact, he's one of the most cheerful guys you'll ever meet. This house is like this owner is like the city of New Orleans, a survivor. I asked the guy, what was your first reaction when you saw this? He just shrugged and said, oh, it happens. He believes, Tony -- we'll come back and check -- he believes that will have this house completely finished, completely renovated in four months.
HARRIS: Wow.
ROESGEN: He says that if the hurricane had given him just two more weeks it wouldn't have fallen over like this. They were starting to renovate from the back forward so the back of the house where we checked out earlier is pretty stable, straight upright. Then the front just went like this.
HARRIS: Yes.
ROESGEN: Anyway, Tony, he says he is going to do it. He's going to come back. We'll check and see. So don't be so uncertain about New Orleans' future.
HARRIS: Yes, exactly. I'm sorry. I was a little glass half empty there for a moment. Hey, I got to ask you, maybe what we'll do is maybe make that home kind of a touchtone for the recovery effort for all the folks in New Orleans from Gustav. But I'm curious, Susan, are there more homes like that in that kind of condition? Maybe just flooded in New Orleans?
ROESGEN: Well, you know, actually, Tony, not so much of flooded and actually this is the worst damage we have seen. I don't think it's typical of what this storm did. But did you know, Tony, that more than a third of all New Orleans houses, more than 70,000 houses in New Orleans were abandoned. They were never fixed after Hurricane Katrina. So this town is still on its knees in trying to recover from Hurricane Katrina.
And, in fact, last night Mayor Nagin gave a news conference, one of several he's had here, and he's asking people not to come home just yet, even though, you know, that's the first thing people want to do is come home. Here's why Mayor Nagin says they shouldn't.
(BEGIN VIDEO CLIP)
MAYOR RAY NAGIN, NEW ORLEANS: Our groceries are still limited. Our gasoline filling stations are still limited. And we encourage and recommend that people with serious medical conditions at this time should not return to the city until further notice. Give us a few more days, and we continue to full report progress to you.
(END VIDEO CLIP)
ROESGEN: The natural reaction is to come home as soon as you can, to find out if you've got power. This neighborhood actually does have power. That is the big issue, though, even as guys start working on this right now. The big issue is that more than 600,000 people in Louisiana, 70,000 in Arkansas don't have power. And there's a big stink about that, Tony, because people want to know, since this storm was not that bad, where is the power company? Why aren't the guys up in the buckets you know getting the power back on? And you heard even the Louisiana governor saying, this is unacceptable. We've got to get the power back on.
HARRIS: Susan, I have full faith in the homeowner there and what he says. I'm going to buy it, but I'm still a little concerned about the structural integrity of that home. But I'm going to take his word for it, as I see someone up there banging on that with what looks like a crowbar.
All right. Susan, good to see you. Thank you.
Space shuttle Atlantis live pictures now, staying in its hangar for now at least. NASA had planned to roll it out to the launch pad at Cape Canaveral today, actually Tuesday, but the Tropical Storm Hanna now has those plans on hold. NASA will keep watching the storm once this is slated for continue to watch the storm. Atlantis is scheduled for an early October mission to service the Hubble telescope.
Hurricane Gustav and billions in dollars of losses, we'll look into the ins and outs of insurance, getting the most out of your claim.
(COMMERCIAL BREAK)
HARRIS: Boy, we are really trying to get a read on what's going on right now in the Wayne County circuit courthouse. And in that courtroom right now, we understand that the judge that is hearing this case is meeting with attorneys from both sides. Of course, we're talking about the Kwame Kilpatrick case, and trying to figure out what's going on here.
We understand the judge is meeting with attorneys on both sides of this case, prosecutors as well as defense attorneys. We keep getting indications, it's certainly being reported in the "Detroit Free Press" that some kind of plea deal has been discussed, maybe in the works, maybe it's just being finalized right now, which at the end of the day would call for the mayor to step down, to leave office.
Just not sure where things are in that process. You know, we've been watching this proceeding since about 8:30 this morning. We are going to continue to watch this and see if we -- that's the door that's been opening and closing and attorneys going back and forth. Kwame Kilpatrick was in the courtroom earlier, not the there now. Perhaps he's back in the judge's chambers as well with his attorneys and with the prosecutors. Just ironing out whatever the details are going to be. As soon as we get some kind of indication as to what is happening here, we will take you back to that courtroom and get you the very latest.
A half a world away from the Republican convention, vice president Dick Cheney is in the former Soviet Republic of Georgia today. He is vowing U.S. support and sharply criticizing Russia's military action last month. Cheney called it an illegitimate unilateral attempt to change Georgia's borders by force. He assured Georgia's president that the U.S. firmly backs the country's effort to join NATO -- that's something Moscow fiercely opposes, the visit comes one day after Washington pledged a billion dollars in aid to Georgia.
Secretary of State Condoleezza Rice is also overseas. She arrives in Libya today. Rice is the highest level U.S. official to visit the oil-rich North African nation in more than 50 years. She will meet with Libyan leader Muammar Gaddafi. The visit signals a warming of relations with the country that was once on the U.S. list of nations that sponsor terror.
Back to class today for boycotting Chicago Public School students. Their walk-out called off two days early. Thousands of students skipped school this week. They gathered for impromptu classes in the lobbies of government buildings rather than their schools. An Illinois state senator called for the boycott, angry over the way Chicago schools are funded. Property taxes account for 70 percent of funding for the nation's third largest school district. Districts with high property values receive more money than lower value neighborhoods. The state senator in question here ended the boycott earlier than planned. The governor said he would wouldn't meet with him as long as students remain out of school.
Police uphold the law by telling people to hold up their pants. Riviera Beach, Florida, police arrested a 29-year-old man for wearing saggy pants. Police say Kenneth Smith was also obstructing traffic. His mother denies the charges and says that she has the video to back up their story.
(BEGIN VIDEO CLIP)
DORAH MARCH, SMITH'S MOTHER: He wasn't, like, walking down the street and stuff like that, you know, without pants all down. He also had on a belt.
LT. ALEX FREEMAN, RIVIERA BEACH, FLORIDA POLICE: We're going to be enforcing this ordinance. And some may think it's silly, but no, we don't think it's silly.
(END VIDEO CLIP)
HARRIS: Well, Smith is the fourth person arrested in Riviera Beach since the saggy pants law went on the books. That happened in March.
Let's take you to the New York Stock Exchange for a look at the big board. The Dow down 98 points just moments ago. It was down in triple digit territory, 100 points. So off the session low so far. The Nasdaq and the S&P also down as well. We will be following the numbers with Susan Lisovicz this morning in the NEWSROOM.
Hurricane Gustav early insurance estimates say there could be $10 billion in losses. Wow, how can you get the most out of your insurance? Personal finance editor Gerri Willis joins me to answer that question. I had -- and Gerri, before I get to you, I want to take everyone back and I apologize for this.
I want to take everyone back to the courtroom in Wayne County, the Wayne County Circuit Court. As you can see, Detroit's Mayor Kwame Kilpatrick is back in the courtroom. You know, let's listen in here for just a moment.
(JOINED IN PROGRESS)
UNIDENTIFIED MALE: ... All right. Ready to call the case? OK.
UNIDENTIFIED FEMALE: Calling the case 08-10496, (INAUDIBLE) versus Christine Beatty.
UNIDENTIFIED MALE: Good morning.
(INAUDIBLE)
UNIDENTIFIED MALE: If you could just go to the lectern, the microphone if you're going to speak. Thank you.
UNIDENTIFIED MALE: All right. In behalf of Christian Beatty.
VOICE OF JUDGE DAVID GRONER, WAYNE CO. CIRCUIT COURT: OK. The reason that my clerk called this case first is because we've had discussions in the back. It's my understanding that you are requesting a further docket count, correct?
UNIDENTIFIED MALE: That's correct, Your Honor.
GRONER: And where is the -- OK, who wants to speak on behalf of the people? Mrs. Beatty.
UNIDENTIFIED MALE: Yes, Your Honor, we have no objection to this court holding it for another docket conference.
GRONER: All right. The record should reflect that these matters have been assigned to this court, as you know. Based on the order in the file. And the court -- this is the 21st day. I spoke -- there is, I spoke with the presiding judge this morning, he indicated that he had no objection if I were to set one more date in this matter, which would be a week from today. If that meets with the lawyers' schedule, if it's not resolved then, it will be (INAUDIBLE). But it sounds to me that there is a fairly good chance that it may be resolved then and both sides think that it might be a good idea to keep it here one more week.
Do you agree, Mr. Moran?
UNIDENTIFIED MALE: I do, Your Honor.
GRONER: Mr. Speda (ph)?
UNIDENTIFIED MALE: Yes, Your Honor.
GRONER: So what we'll do is set September 11th at 2:00 p.m. in this courtroom for the pre-trial in this matter. I guess it would be final pre-trial.
UNIDENTIFIED MALE: Thank you, Your Honor.
GRONER: All right.
UNIDENTIFIED MALE: Thank you, Your Honor.
GRONER: If there's nothing further, we'll stand in recess on that matter. Can you call now the first defendants please?
UNIDENTIFIED FEMALE: Calling case 081077 --
(INAUDIBLE)
Calling case 0810496, people versus Kwame Malik Kilpatrick. He's here today for a docket conference.
UNIDENTIFIED MALE: (INAUDIBLE)
UNIDENTIFIED MALE: (OFF MIKE) ... with James Thomas and Todd (INAUDIBLE) on behalf of defendant, Kwame Kilpatrick, Your Honor.
GRONER: I'm going to ask that the lawyers that are not involved in this case have to leave their seats. You're allowed to stay, find a place, but I do know that there are some members of the mayor's EPU that are here. If they want to sit near the mayor in those seats, they're welcome to. If not, that's fine. Obviously they have their job to do. Thank you. Counsel.
UNIDENTIFIED FEMALE: Your Honor, we are here. All parties have executed a settlement offer and notice of acceptance. We believe we have arrived at an agreement in this case and at this point I'd like to put that agreement on the record.
GRONER: Before you do, I just want to make sure I have a copy of it to go along with what you're saying. I know -
UNIDENTIFIED FEMALE: We gave one to your clerk. GRONER: OK. I've got it. Thank you.
UNIDENTIFIED FEMALE: Your Honor, as it relates to the matter in this case, the defendant, Mr. Kwame Kilpatrick, will plead guilty to count two, obstruction of justice, a five-year felony, and the amended count of count five, obstruction of justice, another five-year felony. The remaining counts as per the defendant Kilpatrick will be dismissed. The terms of this plea agreement are on plea exhibit number 1 and they are as follows -- the defendant shall be placed on five years reporting probation with the first 120 days to be served in the Wayne County jail. The defendant shall announce his resignation immediately upon entry of this plea, and the agreement shall be effective no later than 14 days from the date of this plea. There are some financial conditions as it relates to restitution, and Mr. Moran will put those on the record.
UNIDENTIFIED MALE: Your Honor, as part of this plea, the defendant will pay restitution to the city of Detroit in the amount of $1 million. The first $20,000 is to be paid on the date of sentencing. The remaining amount to be paid during the five-year probationary period based on the defendant's ability to pay, which will be assessed by the sentencing judge in the probation department. The defendant shall surrender, sign and/or transfer all present and future cash payments due to him from his state of Michigan pension, the Treasury of the city of Detroit at the time of sentencing.
As a condition of this probation, the defendant shall execute any and all documents required to effectuate this transfer. The defendant shall receive credit for the present value of the state of Michigan pension against the $1 million restitution owed to the city of Detroit. There will be no further prosecution of the defendant Kilpatrick arising out of the underlying facts and circumstances of this prosecution. The defendant shall not seek or hold elective office during the years of his probationary period. The defendant shall surrender his license, law license, upon conviction of the two felonies. The remaining terms and conditions of the defendant's probation to be determined by the court. And that is the entire substance of this agreement.
GRONER: Mr. Evelyn, are you in agreement with what the prosecutors just stated on the record?
UNIDENTIFIED MALE: May it please the court, that is correct, Your Honor. And I hold in my hand the executed letter of resignation that is a part of the plea agreement.
GRONER: Have you looked at that letter, Mr. Moran?
UNIDENTIFIED FEMALE: Your Honor, we've had an opportunity to review this, and it does meet the conditions as set forth.
UNIDENTIFIED MALE: All right. We agree with the other conditions outlined by Ms. Lindsay and by Mr. Moran, Your Honor. We're ready to proceed.
GRONER: All right. Mr. Kilpatrick, if you could rise and stand next to your lawyer, sir. Would you give the mayor his oath. (INAUDIBLE)
MAYOR KWAME KILPATRICK, DETROIT: Yes.
GRONER: Could you state your name for the record, sir.
KILPATRICK: Kwame Malik Kilpatrick.
GRONER: How old are you, sir?
KILPATRICK: I'm 38-years-old.
GRONER: Sir, you understand that you are charged with the following counts -- count one, conspiracy, legal act/illegal manner. Count two, obstruction of justice. These are the original counts. I have to go over them. Count two, obstruction of justice. Count three, common law offenses. Count four, common law offenses. Count five, perjury in a court proceeding. Count six, perjury in a court proceeding. Count nine, perjury other than court proceeding. Count ten, perjury other than court proceeding. Those are the original counts against you, sir. You understand that?
KILPATRICK: Yes, I do.
GRONER: Counsel, can you approach for a moment.
Because of the microphones, I'm going to have to take them in the back. So, it won't be long. One moment.
HARRIS: OK. We're waiting for the judge to continue going through the process here. Really stunning when you think about it. This mayor, Kwame Kilpatrick, 38-years-old, such a rising star when he was elected and re-elected. What a descent -- as you take a look at his wife -- now having to enter into a plea agreement pleading guilty to serious felonies. Two felony charges, both counts dealing with obstruction of justice by committing perjury. Four months in jail for Kwame Kilpatrick, $1 million in restitution, five years probation, during which he would not be allowed to run for office. Mayor Kilpatrick would also have to turn over his state pension to the city of Detroit as part of that restitution.
We're talking about the mayor of a major American city, about to resign, about to go to jail, at some point in the near future. Let's listen in again.
(JOINED IN PROGRESS)
UNIDENTIFIED MALE: ... The court went off the record because it's my understanding that there was an agreement to amend count five from perjury of a court proceeding to obstruction of justice.
Is that correct, Ms. Lindsay?
UNIDENTIFIED FEMALE: That's correct, Your Honor.
GRONER: And Mr. Evelyn?
UNIDENTIFIED MALE: Correct. And it's not in the amended complaint, but it is a stipulation by counsel.
UNIDENTIFIED FEMALE: Yes. And it is on the settlement offer form.
GRONER: I understand that. So -- OK -- so for purposes of the amendment, maybe something should be filed to reflect that there was an amendment.
UNIDENTIFIED FEMALE: Yes.
GRONER: You'll do that. We don't need it right now, but it should be done as soon as possible. OK? (INAUDIBLE) All right, great.
So, with that amendment, Mr. Kilpatrick, you are now aware of all the charges that you were charged with, correct?
KILPATRICK: Yes.
GRONER: Originals (ph)?
KILPATRICK: Yes.
GRONER: There has been a plea offer of made, and what will happen is you're going to be pleading guilty to count two, the obstruction of justice, count five, the obstruction of justice, which is the amended charge that was stipulated to by counsel. There is an agreement with the people that was recited by Mr. Moran.
Do I need to recite that again? Are you fully aware of what that agreement is?
KILPATRICK: Fully aware.
GRONER: You got a copy of that agreement? You've gone over with it your lawyer, correct?
KILPATRICK: Yes I have.
GRONER: Is that correct, Mr. Evelyn?
UNIDENTIFIED MALE: Yes, Your Honor.
GRONER: Is your client -- was he in agreement with everything that was in that agreement and that was stated by Mr. Moran?
KILPATRICK: I understand.
UNIDENTIFIED MALE: He understands.
UNIDENTIFIED MALE: And Ms. Lindsay?
UNIDENTIFIED FEMALE: He understands fully the agreement. He agrees to be bound by it, Judge.
GRONER: Thank you. And that would be the full extent of the agreement as you know it, sir, is that correct?
KILPATRICK: Yes.
GRONER: There may be other conditions of probation or other issues, court costs, maybe some other issues that the court routinely does as part of its sentence with every defendant that I may impose. But as far as the meat of the agreement, you're satisfied -- and Mr. Evelyn you're satisfied -- that everything has been gone over and that's the extent of it, correct?
UNIDENTIFIED MALE: I'm fully satisfied that my client understands this, Your Honor.
GRONER: All right.
And Mr. Kilpatrick, you understand that by pleading guilty that you're going to give up certain constitutional rights and one is the right to be tried by a jury. You understand that, sir?
KILPATRICK: Yes.
GRONER: You're also giving up the right to be assumed innocent until you're proven guilty. Do you understand that?
KILPATRICK: I think I gave that up a long time ago, Your Honor -- yes.
GRONER: Giving up the right to have the prosecutor prove, beyond a reasonable doubt, that the defendant is guilty. Is that correct, sir?
KILPATRICK: Yes.
GRONER: You're also giving up the right to have the witnesses against you appear at your trial. You understand that, sir?
KILPATRICK: Yes.
GRONER: You're giving up your right to question those witnesses that would appear and testify against you through your lawyer or lawyers by what we call cross-examination of witnesses. You understand that, sir?
KILPATRICK: Yes.
GRONER: You're giving up the right to have the court compel or order any witnesses to come to court to testify for you if you went to trial. You understand that, sir?
KILPATRICK: Yes.
GRONER: You're giving up your right to remain silent during your trial. You understand that, sir?
KILPATRICK: Yes.
GRONER: And not have that found against you. You understand that, sir?
KILPATRICK: Yes.
GRONER: You're giving up the right to testify at your trial if you wanted to testify at your trial -- if you wanted to testify. Do you understand that, sir?
KILPATRICK: Yes.
GRONER: And if the plea is accepted, you're giving up any claim that the plea was the result of any promises or threats that were not disclosed to the court at the time of this plea, or that it was not your own choice to plead guilty. Do you understand that, sir?
KILPATRICK: Could you read that one again?
GRONER: Absolutely.
If your plea is accepted, you will be giving up any claim that the plea was the result of any promises or threats that were not disclosed today, in this court, at the time of your plea, or that it was not your choice to plead guilty. You understand that?
KILPATRICK: Yes, I understand that, yes.
GRONER: And you're in agreement with that, correct?
KILPATRICK: Yes.
GRONER: And, finally, if I accept your plea, sir, you will not be able to appeal this case as a matter of right, that you would be able to do if you were convicted at a trial or anyone who is convicted at a trial. You would have to ask a higher court to hear this. And they may hear it, they may not. It's not an automatic right to appeal. Do you understand that, sir?
KILPATRICK: I understand it.
GRONER: You understand all the trial rights that I've gone over today, is that correct?
KILPATRICK: I do.
GRONER: You want to waive those trial rights and plead guilty today, correct?
KILPATRICK: Yes.
GRONER: Are you satisfied with your lawyers in this case?
KILPATRICK: What do you mean?
GRONER: Well, are you satisfied that they have done a competent job in the sense that they have represented you to the best of their abilities and there's no issue that you have with them regarding this case today?
KILPATRICK: No.
GRONER: You're not in agreement with that?
KILPATRICK: No, no. I mean, yes, I'm in agreement with that.
GRONER: Anything else that you're confused about, anything that you're unsure about today? Is this something that you're ready to do today?
And I say ready, in a sense that --
KILPATRICK: That I'm here. Yes, yes, Your Honor. Yes.
GRONER: No question about what's going on today?
KILPATRICK: No question about what's going on today, no.
GRONER: All right. All right.
Are both parties satisfied that the court has complied with the court rules as far as the defendants' right?
UNIDENTIFIED FEMALE: Judge, can we approach?
UNIDENTIFIED MALE: Yes.
HARRIS: Well, there you have it. Wayne County circuit court this morning. Pretty shocking developments, really. 38-year-old popular mayor of Detroit, Michigan, major American city, pleading guilty, entering a guilty plea, all stemming from a relationship he had with his former chief of staff that he lied about under oath. In another case, the relationship came to light through pretty salacious, hot, romantic text messages exchanged between that former chief of staff and the mayor who is now resigning as part of a plea deal.
One hundred and twenty days, four months in jail for Kwame Kilpatrick. He has to resign from office. $1 million in restitution. He loses his state pension as part -- to the city as part of that restitution. He would also not be allowed to run for office through the five years of probation. So there you have it. What a fall from great heights for Kwame Kilpatrick. And at times smiling, seemingly defiant, unashamed as he sat there in court entering a plea deal that will see him spend four months in prison.
We're going to take a break and come back with more of this story and other news right after this.
You're in the CNN NEWSROOM.
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HARRIS: We are on storm watch to be sure. Hanna heads closer to the United States, Ike still far out in the Atlantic, strengthening to a dangerous Category 4 hurricane. Hanna is still a tropical storm right now but could make landfall as a Category 1 hurricane. It is expected to be off the coast of the Carolinas by tomorrow. Storm preparations, as you can imagine, already under way, in full force really. Right now Hanna is meandering near the Bahamas after drenching Haiti and the Dominican Republic. Haitian officials say 61 people died in the flooding.
Let's get more on where the storms are right now, where they're headed. Rob Marciano, there he is, is tracking all of this from our hurricane center.
Rob, good morning, doctor.
MARCIANO: Good morning, Tony.
You know we get these advisories updated at 11:00, typically they come in a few minutes before. We've got the one for Ike, and then we've got the one for Josephine. We'll explain those in just a second. We don't have the latest advisory for Hanna. Seems the ones that are closest and a little bit more complicated where they have the airplanes flying in there from time to time, to get the reconned, they tend to come in the last.
So, this is the latest advisory we had as of 8:00 this morning, 70-mile-an-hour winds, so almost at hurricane strength. Although, it doesn't look nearly as impressive as far as the satellite cloud signature is earned. We'll probably get some convection -- looks like we're starting to get some convention to flair up here on the southwest side of it. Anyway, it's heading northwesterly, so it's on the move at about 12 miles an hour toward the Carolinas. That's expected to continue, if anything, maybe pick up steam. And then it'll hit the Gulf stream and that may intensify.
This is Hurricane Ike, a Category 4 storm. It has dropped a little bit in intensity but not much, still a Category 4 storm. That certainly looks very, very impressive. We'll talk more about that in a second.
First item, though, here's Hanna. Forecast track is to skim the Florida coastline, remain well offshore. By the way, rip currents are going to be an issue today and tomorrow there. And then, make landfall tomorrow night, early Saturday morning, across the Carolina coastline, somewhere -- probably more like Myrtle Beach to Cape Hatteras. That will probably be the cone. Maybe the latest advisory nudges it further it to the east. That would be good, maybe get it off -- out to sea before it even makes any sort of landfall. That's unlikely, but possible. So we'll hope for that here in the next few minutes.
Hurricane Ike, here is the latest -- oh, this is good news. This is the first I saw this. It's a Category 4 storm now. The official forecast calls for it to drop in intensity, still a major hurricane, a Category 3, and head into the Bahamas. And then, look, this is Saturday, early Saturday morning, just offshore of Miami. So that's a scary proposition. Intensity forecasts beyond day three are -- there's no confidence and the Hurricane Center will fully recognize that. Tracks they are pretty good at beyond day three, but intensity, they're a little bit squeamish on. So we'll try to nail that down in the days to come.
Here's Josephine, that's a tropical storm, 50-mile-an-hour winds, not that big of deal right now. And it's way out there so don't worry about it at the moment.
Gustav -- this is what's left of Gustav. It's not even a depression anymore. But the remnants of it -- moisture running into a pretty strong cold front. That is chilling things out across the upper Midwest, but also squeezing some of this moisture from Chicago down to St. Louis. So that is going to be a heavy rain-maker for the next 24 hours. And some of this feeding all the way back down to the southeast, Louisiana. From Thibodaux back through Houma and Morgan City and southwestern parts of New Orleans there. They're picking up the pieces still --
HARRIS: Yes isn't that crazy? Isn't that crazy, it goes right -- and then here it comes back because it gets up in the upper atmosphere and starts --
MARCIANO: Right.
HARRIS: Oh, boy.
All right. Rob, appreciate it. Thank you, sir.
MARCIANO: All right.
HARRIS: People along the Gulf Coast still assessing the damage from Hurricane Gustav. Crews are working to restore electricity. Almost 830,000 households are still without power this morning. Power company officials say it could take weeks to get everyone back on. Louisiana's governor says that is absolutely unacceptable. Evacuees are returning despite the power outages. Two million people left the Gulf Coast region ahead of Hurricane Gustav, most under mandatory orders to evacuate.
Detroit mayor, Kwame Kilpatrick, just moments ago resigning after agreeing to a plea deal in a sex scandal. Live pictures now as the proceedings continue. The 38-year-old Kilpatrick pleaded guilty to felony charges of obstruction of justice of perjury. Kilpatrick will serve four months in jail, five years probation and pay $1 million in restitution. The case stems from an affair Kilpatrick had with his former top aide, Christine Beatty. Beatty also faces charges of perjury and obstruction of justice.
That sinking feeling hits Wall Street again. The reason behind today's sagging numbers.
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HARRIS: So listen up if you own a Sony laptop. The company is recalling 440,000 Vaio notebook computers worldwide. The problem -- overheating. Now, to find out if your laptop is impacted, you can logon to esupport.sony.com/fixmypc. The company is offering to go to you for onsite repairs or you can ship your notebook to their service center.
Boeing workers in the Seattle area vote to go on strike, but the walk out is on hold. Eighty percent of union members voted to reject Boeing's contract offer and a whopping 87 percent voted to strike. But here's the thing. Those cheers were followed by chants of sellout after the union leadership agreed to hold off on the strike for 48 hours. Boeing's latest offer included pay raises averaging 11 percent and bonuses of at least $5,000.
Gas prices inched down a bit for the fourth straight day according to AAA. The national average slid three-tenths of a cent to just under $3.68 a gallon this morning. That is more than 10.6 percent off the record high, and that was just six weeks ago.
Hurricane Gustav -- early insurance estimates say there could be $10 billion in losses. Boy that's a tough figure. How can you get the most out of your insurance? Personal finance editor, Gerri Willis, joins me to answer these questions.
And Gerri, I read it a second time and that is still such a big number -- GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: It is, Tony.
HARRIS: -- to consider here.
Why don't we get through some of this great information you've got for us before something else happens here.
WILLIS: Right.
HARRIS: How can you get the most out of your claim?
WILLIS: Well, Tony, you know how this works. The most common complaint of folks is that they don't get as much money as they think they should. Now to avoid this, make sure you have the paper work. Get on the phone with your insurance company and keep a detailed record of your conversations. Consider it a claims diary. Make sure you list the date, time, and a brief description of the exchange. Confirm agreements, disputes and deadlines in writing or by fax or e- mail. Keep all receipts for temporary housing and any minor repairs and submit them for reimbursements.
Now this may be reimbursable under the additional living expense portion of your homeowner's policy. Get out your inventory of possessions or try to list your possessions as soon as you can. It's all about the details and getting them on paper.
HARRIS: Yes. Yes, you're so good at reminding us -- the devil is in the details.
But, Gerri, what if you believe the claim offer is too low?
WILLIS: All right. So if they come back to you and say the claim is denied or you think what they want to give you is too low, make sure the company tells you exactly why the claim was denied or they're giving you so little money. Keep in mind that every insurance company dispatches their own adjustor to survey and make a judgment on what kind of settlement you should get. But remember, you can always call your own adjustor.
It's not free. Independent adjustors make their money by taking a percentage of what the settlement is. Contact the National Association of Public Insurance Adjustors for more info. They've got a Web site -- napia.com.
HARRIS: You know what, Gerri? I don't like the offer and I also think the process -- I don't like the process. Now what do I do?
WILLIS: All right, OK, Tony. Now, if your adjustor is uncooperative, or you're not getting anywhere with your insurance company, it's time to complain in writing. We're upping the ante here.
HARRIS: Great.
WILLIS: Use the records you have kept since the claim process began, then complain to your state insurance department. Those are the regulators. All states will seek a response to your complaint from the company on your behalf. When an insurance company knows you're complaining to the regulator, chances are they're going to pay more attention to what you're saying. If the complaint goes nowhere, you may need to contact a lawyer.
If your treatment was particularly bad the courts in many states will allow additional compensation when the insurance company acts in bad faith. So you have recourse.
And if you have any other questions, send them to us at toptips@CNN.com. We love hearing from you, and we answer those questions right here every Friday.
HARRIS: Can't let you go without getting a quick preview from you of the big "OPEN HOUSE" show this weekend.
WILLIS: Yes, the big "OPEN HOUSE" show -- how to figure out what kind of insurance you need to protect your home and your belongings, how to raise money after disaster strikes. That's "OPEN HOUSE," this Saturday, 9:30 a.m. Eastern time. Be sure to join us.
HARRIS: Great information. We got it all in.
Good to see you, Gerri. Thank you.
WILLIS: Thank you, Tony. Good to see you.
HARRIS: Let's stay with some business news now. You know it's a double whammy for the economy. New reports show retailers are still struggling and jobless claims rising. Susan Lisovicz is at the New York Stock Exchange with details and market reaction.
And this double whammy, so far, means a pretty steep selloff, Susan.
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: Double whammy, triple digit losses, is how the translation goes, at least about an hour-and-a -half into trading day today, Tony.
We are hearing from retailers for the month of August, and most retailers reported sales that missed expectations. Mall-based stores, like Saks, Nordstrom, JCPenney and Gap, reported declines for the month on weak back to school buying. And back to school is a huge, huge season for retailers.
There are some doing well and we've heard this song before as well -- discounters and wholesale clubs like Wal Mart and Costco. Shoppers are out looking for bargains and limiting their buying to the bare necessities and to those retailers that make a compelling case for them to buy at their stores -- Tony.
HARRIS: Well I'm just interested, for retailers, this is an important time, August. You're talking about back to school sales and an opportunity to sell here. But it hasn't worked out so far?
LISOVICZ: That's right. And you know, it gives retailers an indication of what's going to happen for the holidays, what kind of fashions are hot, what kind of electronics that kids have to have. And that is a bad omen because we know, then, it really would be a double whammy. One analyst says stores are discounting more this year than last year and keeping inventories low.
Energy prices are high. People are losing their jobs. No surprise that consumers are pulling back. And we do have reports on that front, the number of new jobless claims unexpectedly rose last week to 440,000. Anything about 400,000 -- a sign of a troubled economy. The number of people who continue to receive unemployment benefits rose to nearly 3.5 million.
It's not playing well on Wall Street. No surprise. Dow is at session lows, down 217 points. The Nasdaq, meanwhile, is down 40 points. Each of them down about one and three-quarters percent. Oil is down a dollar, Tony.
HARRIS: OK.
LISOVICZ: But we've also -- we got some bad news on the home front, the housing front. Two leading home builders, Toll Brothers and Hovnanian reported quarterly losses and Hovnanian shares are down 9 percent. That's also weighing on the averages.
Tony, back to you.
HARRIS: Susan, see we'll you next hour. Thanks.
LISOVICZ: You got it.
HARRIS: Prime-time Palin. John McCain's running mate takes the national stage and wows the GOP. Convention coverage with our Soledad O'Brien. (COMMERCIAL BREAK)
