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Last Two Stand-Alone Wall Street Investment Banks Gone; Debating the $700 Billion Rescue Plan; Tourists Kidnapped in Southern Egypt; Pumps Running Dry, Tanks Running Out; Records Set at the Emmy Awards
Aired September 22, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Washington works to bolster Wall Street. Lawmakers hammering out the details of a $700 billion bank rescue plan. Why they say the deal is needed and why it won't solve your financial woes.
And it's being called the worst blast in Pakistan's history. Who the attack may have targeted and how they escaped death.
It is Monday, September 22nd. I'm Heidi Collins. You are in the CNN NEWSROOM.
Beyond the bailout. From Wall Street to Pennsylvania Avenue, all eyes on the bottom line. President Bush calls on Congress to hurry up and pass a $700 billion rescue plan.
Under the proposal, the Treasury Department would buy up bad mortgages and banks should then be willing to lend money. Some partisan debate already getting started as you might imagine.
It's the end of an era on Wall Street. The last two major investment banks have officially shifted into commercial services now. Last night the Feds approved the request of Goldman Sachs and Morgan Stanley.
We'll look at what all of that means to them and, of course, to you.
Also, while you were sleeping, overseas markets weighed in on the nation's financial crisis. Asia markets are up. Europeans have bounced -- bouncing around a little bit. We'll be there for the opening bell, of course, later on this hour right here on Wall Street.
And we are covering all the angles with the CNN money team. Christine Romans is breaking it down for us. What does it all mean to you? Gerri Willis on how to protect yourself in these very scary times, and Brianna Keilar on Capitol Hill where negotiations over the bailout, of course, are happening.
Brianna, I want to start with you and the politics of money. Good morning.
BRIANNA KEILAR, CNN CORRESPONDENT: Good morning to you, Heidi.
Well, the administration sent over this proposal and Democrats are talking about what's not in it, what they want to add to it. What they are basically saying is they don't want taxpayers picking up the $700 billion price tag only to find out that, yes, it props up Wall Street but it doesn't keep them from foreclosing on their homes.
So some of the things Democrats are proposing, oversight, independent oversight as well as accountability, some checks and balances in the whole system of how this proposal is carried out.
They also want to see limited executive pay. There's something that's not sitting well with Democrats. That is the fact that the government could essentially bail out corporations and corporations could turn around and give huge salaries to CEOs.
So they want to see that limited. They're also talking about a provision that would allow the government to get involved in refinancing individual homeowners so that they could keep -- help individual homeowners stay in their homes.
Right now there is bipartisan discussion. Democrats and Republicans saying we're going to try to move this by the end of the week, not too long after that. However, people aren't seeing eye to eye on this here on Capitol Hill.
Listen.
(BEGIN VIDEO CLIP)
SEN. CHRISTOPHER DODD, BANKING COMMITTEE CHAIRMAN: I think we make a huge mistake if we just basically write a check for $700 billion and turn it over without demanding accountability, addressing home ownership, and -- raising major concerns about taxpayer exposure.
REP. JOHN BOEHNER (R), MINORITY LEADER: The more strings that are put on this package as we move through it, means that it's less likely to work. This bill needs to move quickly and I'm hopeful that Congress can work in a bipartisan manner to address the concerns that the American people have and do it as quickly as possible.
(END VIDEO CLIP)
KEILAR: So that sentiment coming from House minority leader, John Boehner, basically saying we need something that is clean and we need something that is quick and we're hearing that from a lot of Republicans and a lot of members of the Bush administration.
A lot of negotiation going on here on Capitol Hill. This week over the weekend, continuing this week, there are going to be hearings, Heidi. We're going to see Secretary Paulson in front of the Senate Banking Committee tomorrow.
COLLINS: All right, clearly a lot going on. We are watching all of it very closely.
CNN's Brianna Keilar for us this morning -- thanks, Brianna.
Billions of dollars, lots of fine print. It's not easy to wrap your mind around the details of this rescue plan, that's for sure. So here to walk us through, CNN's Christine Romans.
OK, top to bottom, tell us the whole deal, Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: We know it's only three pages long and so one of my sources...
COLLINS: This is shocking.
ROMANS: I know. One of my sources on the street says it's a real leap of faith because it's only three pages long. It gives, you know, a lot of power to the treasury secretary. And in three pages, it is supposed to remake basically the world as we know it in terms of finance. And so that has got some people concerned.
Let's talk about the bailout mechanics as we know them. $700 billion to buy the illiquid debt off of banks' books. Treasury would run that program directly without mopping up that toxic debt. A lot of folks are saying that you simply don't have banks lending to each other and then that oxygen for the American economy is starved.
The debt ceiling needs to be raised to $11.315 trillion. And it's incomprehensive how much money that is. And what a big debt ceiling that is.
But here is the case -- this is the case what happens without a bailout. And this is what the administration is sort of putting forth and what people are saying why it needs to be done cleanly and quickly.
Companies can't make payroll or pay bills if you have this -- what they call the commercial paper, this very short-term market that lends to companies overnight, banks lending to each other.
That dries up, companies can't make payroll, they can't pay their bills, they have to start laying people off. Consumers and small businesses can't get loans. That just freezes and starves corporate America.
Corporate profits fall. That hurts government revenue -- government revenue at a time when you've already got these big deficits. Housing prices then continue to fall.
COLLINS: Yes.
ROMANS: Property taxes just plummet and then funding just dries up for schools and local services. We've already seen that in some places.
You know, I mean, it comes down to, you know, can you pay for a crossing guard? Can you pay to keep, you know, the school open late for after-- after school programs? Can you pay to keep the parks open?
Not if you have your revenues falling on a very local level. And that's already been starting to happen -- Heidi. COLLINS: Well, and you hit the key point. Maybe some people who are just seeing that price tag that we at least are seeing $700 billion right now, see that and don't realize how it comes down to exactly their level, their lives, their everyday happenings.
So I also want to touch on this Goldman Sachs and Morgan Stanley becoming bank holding companies over the weekend. Explain the significance of this now. These are the only two guys left.
ROMANS: Right. Wall Street has changed forever. In one week, Wall Street has completely changed. That is how sort of monumental all of this stuff is for Wall Street. And why do you care about Wall Street? Because Wall Street -- its crisis is a money crisis. And you need money. Money is, you know, what drives everything around here.
Yes, so these two have now petitioned the Fed and been granted to be now bank holding companies. And it's going to make it easier for them to raise some money. It's going to allow them maybe to buy commercial banks and it kind of takes them off of the target -- you know, the target on Wall Street, the dart board on Wall Street where so many people were just looking to take down, you know, every investment bank because the business model was broken.
And now these two guys completely changed, the Fed allowing them to do that.
COLLINS: Wow. All right, well, we're following all of it.
CNN's Christine Romans for us -- thank you, Christine.
ROMANS: You're welcome, Heidi.
COLLINS: The financial rescue plan is also shaping the world oil market. Prices up again today after Friday's big surge. Today's open, more than $104 a barrel. And prices surged more than $6.50 on Friday.
Investors apparently optimistic the rescue plan will stabilize the financial system and eventually boost the economy.
The economy, it's "ISSUE #1," and the CNN money team is on the job. Personal finance editor Gerri Willis is looking out for you. How safe is your money? She's got some answers coming up in just a little while.
And at the bottom of the hour we'll go to Wall Street for the opening bell, of course. CNN's Susan Lisovicz on the message being sent by investors and their money.
Meanwhile, people are being let back into JFK airport right now. The JetBlue terminal was evacuated for a short time last hour after reports of a suspicious package. It was a false alarm.
Here's an iReport from Nick Makos. He waited with all the people. Whoa. Look at that. Again, everybody being slowly let back into that terminal now after a false alarm. Great picture from him.
New information about why the Marriott Hotel in Islamabad, Pakistan may have been targeted by terrorists.
Our international correspondent Reza Sayah is there with the very latest.
(BEGIN VIDEOTAPE)
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT (on camera): New information that raises a lot of important questions about the massive suicide truck bomb that rocked the federal capital of Islamabad on Saturday night.
Pakistan's government now says the newly elected president, Asif Ali Zardari, along with Pakistan's prime minister, Yousuf Raza Gilani, and a number of other high ranking officials were supposed to have dinner here at the Marriott on Saturday night but early in the day there was an abrupt change of plans. They moved the location to the prime minister's house, which is less than a kilometer away.
This suggests that the bomber perhaps was not targeting the Marriott in Islamabad and instead was targeting the president, the prime minister and other high ranking officials.
When it comes to that abrupt change of plans, did the government know that something was about to go down at the Marriott in Islamabad? And if they did, why did they not take extra precautions to protect this hotel?
Again, these are important questions that have emerged. We will certainly plan to put those questions to government officials in the coming days.
As far as the investigation goes, it continues on this Monday. We now know what this truck bomb looks like because of some dramatic surveillance video from hotel cameras, video that shows the truck bomb crashing through the steel gate. There was fire at the engine block that spread and minutes later the truck bomb exploded.
Nobody has claimed responsibility but analysts say based on the magnitude of this explosion, it has the hall marks of al Qaeda.
Reza Sayah, CNN, Islamabad.
(END VIDEOTAPE)
COLLINS: Two Americans were also among those killed in the blast, both were active-duty military and both assigned to the U.S. embassy in Islamabad.
No group has claimed responsibility yet but government leaders say they suspect militants in Pakistan's tribal regions.
President Bush heads to New York later today to meets with other world leaders at the United Nations. Among the concerns how the turmoil on Wall Street could affect the U.N.'s ability to raise billions to help fight the world food crisis.
South Africans are being told not to worry, even though their president, Thabo Mbeki, is on his way out. He resigned over the weekend after losing a power struggle with the head of the ruling party, Jacob Zuma.
Today Zuma says the transition, quote, "will be managed with care and transition."
Zuma's deputy could become the country's interim president.
In the battleground state of Florida the fight is over Social Security. New attack and counterattack by the candidates.
(COMMERCIAL BREAK)
COLLINS: The banks may be getting a bailout, but what's in it for you? Our Gerri Willis has personal finance advice in the midst of a global financial crisis.
(COMMERCIAL BREAK)
COLLINS: America's money crisis, your money, your concerns. How safe are your savings and investments? CNN personal finance editor Gerri Willis is in New York this morning and has the very latest on that.
Obviously, Gerri, this is a question that almost everybody has right now. How do I protect my money?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, job number one is taking stock of your accounts, Heidi. Figure out what you have in each of your accounts including savings accounts, checking accounts, CDs or joint accounts. That's because your money will be protected -- that's right, protected -- up to certain limits at FDIC if the bank fails.
Now here are some of the limits. You want to check this out. Individual accounts up to $100,000, joint accounts up to $200,000, and retirement accounts up to $250,000.
Now understand that you can have more than this at one bank as long as you divide your funds up among various ownership categories -- individual, joint. You have to mix it up to make sure you're safe.
Credit unions are also insured up to the same limits. If you exceed these limits, you're over them, move that money around to another bank or credit union. And if you have a brokerage account you're protected, too, in case of a bankruptcy, up to $500,000 for securities.
Now let's talk about money market accounts for just a second. Last week the U.S. Treasury announced it would insure the holdings of money market mutual fund, so you don't have to worry about losing your money in these accounts.
Make sure you know what your money market fund it's invested in. There's a lot of company debt and you're feeling nervous, you can switch out, if you want to, to a money market account that invests in treasuries. That's the safest bet. But remember the government has announced they're standing behind these.
Mutual funds, a lot of people have taken their money out of mutual funds. Almost $30 billion this month alone is what's expected. But now is not the time to be moving your money out of the market.
Instead, if you've got decades to retirement, look at your asset allocation, make sure you're diversified, meaning, you own a good mix of stocks, bonds and international holdings.
So don't panic. Take a look at what you have -- Heidi?
COLLINS: A lot of people also worried about their insurance accounts, particularly, after what happened with the AIG. What -- do you have any advice there?
WILLIS: Well, look, the problems we saw with AIG were with the parent company.
COLLINS: Right.
WILLIS: Not the subsidiary that has the insurance agencies. I know a lot of folks out there may have had annuities through AIG but your money is going to be safe. The federal government is going to stand behind it.
What's more, there's also something called the state guaranty fund in case your insurance company goes out of business. You need to check with your agent if you're worried about it today or your own state's guaranty fund to understand the limits that they have in place.
But at the end of the day, the AIG folks, they are -- you know their investments are backed by the federal government. It doesn't get much safer than that.
COLLINS: All right, very good, CNN's personal finance editor Gerri Willis.
Thank you, Gerri. We'll talk with you again a little bit later on.
Getting a jumpstart on the November election. Some voters have already been there, done that. Most states now allow any registered voter to vote early, either in person or by absentee ballot.
Nearly a third of the electorate is expected to be on board. None of the votes will be counted, though, of course, until Election Day.
Saving Social Security. The presidential candidates clashing over who's best to handle the entitlement program.
CNN's Jim Acosta has the latest.
(BEGIN VIDEOTAPE)
JIM ACOSTA, CNN CORRESPONDENT (voice over): In this key swing section of Florida, Sarah Palin told a sea of supporters, many of them senior citizens, that only John McCain can fix the mess on Wall Street.
GOV. SARAH PALIN (R), VICE PRESIDENTIAL CANDIDATE: He told Congress, he warned Congress that we needed to do something before these problems became a crisis. But Congress did nothing. And now Americans are paying the price.
ACOSTA: But Palin had no response to a new line of attack from Barack Obama, who is trying to link the financial crisis to McCain's past support for changing Social Security, changes the Democrats label as privatization.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: When I'm president, we are not going to gamble with Social Security. If my opponent had his way, millions would have watched as the market tumbled and their nest egg disappeared before their eyes.
ACOSTA: For years, McCain has favored allowing young Americans to divert payroll contributions away from Social Security and into financial markets.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: You have to go to the American people and say we don't -- we won't raise your taxes, we need personal savings accounts, but we've got to fix this system.
ACOSTA: Accusing Obama of entitlement fear mongering, the McCain campaign insists the Arizona senator is simply trying to keep the program solvent.
MCCAIN: I will not privatize Social Security.
ACOSTA: Democrats are also highlighting an article written by McCain in a trade magazine for actuaries in which the Republican nominee calls for deregulating health care.
"Opening up the health insurance market to more vigorous nationwide competition," the senator wrote, "as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation."
OBAMA: So let me get this straight. He wants to run health care like they've been running Wall Street.
Folks, you cannot make this stuff up.
ACOSTA: Not so says the McCain camp. But with Florida almost dead even, McCain's supporters here want their candidate to steer clear of Social Security.
TONI MAGGIORE, MCCAIN SUPPORTER: I don't think he's going to go through with it because he knows a lot of us are against it. I believe that, anyhow.
(END VIDEOTAPE)
COLLINS: As for that McCain magazine article, his campaign says he was simply calling for greater competition in health care as a way to lower costs for consumers.
For the best political team on television, check out CNNPolitics.com. It's your source for all things political.
Going back home or what is left of home. Hurricane Ike evacuees boarding buses today.
(COMMERCIAL BREAK)
COLLINS: Life slowly getting back to as close to normal as possible along the upper Texas Gulf Coast. More than 1600 people who evacuated ahead of Hurricane Ike are on the road again heading home now.
Many of them have been staying in shelters in the Ft. Worth area. Along the coast, power is being restored, businesses are reopening and cell phone service is improving. But Galveston still off limits, at least until Wednesday.
If you'd like to get involved with relief efforts for the victims of Hurricane Ike, you can visit our "Impact Your World" page. There you'll find links to organizations working in Texas and along the Gulf Coast.
Again, that address CNN.com/impact.
While evacuees return home, we are watching another disturbance that may threaten the East Coast. Meteorologist Reynolds Wolf over in the Severe Weather Center now.
I don't know. Do we want to hear this, Reynolds?
REYNOLDS WOLF, CNN METEOROLOGIST: I think so.
COLLINS: OK.
WOLF: I don't think we have much of a choice.
COLLINS: We can't deny it. Yes.
WOLF: No, we're all about information here and I think more information we can tell people the better. You know we've had a little bit of I'd say a break or so for about a week or so of any real big tropical threats but I'll tell you things are brewing up there once again for Puerto Rico, parts of the Leeward Islands. They get some scattered showers and storms. Speaking of scattered showers, we've got some very heavy rain possibility of anywhere from 10 to 20 inches of rainfall for Puerto Rico especially in the higher elevations. Before all is said and done, this is not a named storm yet. Certainly has the possibility of strengthening, intensifying maybe later today, perhaps even tomorrow, could become a named storm.
Should it get a name, the name will be Kyle. So we'll keep a sharp eye on this. No idea where it might be headed at this point. There are certainly a lot of possibilities, we'll watch it for you very carefully.
We are your hurricane headquarters, of course.
(WEATHER REPORT)
WOLF: Very summer like, which is kind of interesting, Heidi, because today is the day that fall begins.
COLLINS: I know.
WOLF: In fact, right into 11:45 a.m., check it out. Going to -- again, switching the seasons, going from summer to fall.
Heidi, I don't know what's in store for us here today in the NEWSROOM. I don't know if we're breaking out the margarita machine to celebrate the change of seasons but I'll tell you...
COLLINS: Something. It should be something.
WOLF: I know. It's been a very long summer and fall should be rather interesting. Always seems to be.
COLLINS: Yes.
WOLF: Back to you.
COLLINS: All right, Reynolds. Love the graphics. At least we have that.
WOLF: Yes, now we got to rake all these leaves.
COLLINS: Yes, exactly. All right.
WOLF: There you go.
COLLINS: We can see that. We'll check back with you a little bit later on.
WOLF: Anytime.
COLLINS: We also like it when Google changes its home page according to the day. Isn't that cute? Check out how it looks today in honor of the first day of fall. Back to this, though. A $700 billion bank bailout plan now in the works. Is Wall Street still bullish on its prospects? Opening bell, about to ring.
(COMMERCIAL BREAK)
COLLINS: The government's rescue plan for America's financial crisis. What do the candidates say?
(COMMERCIAL BREAK)
COLLINS: There you have it. Seconds ago, the opening bell today, Prime Minister of Kuwait right there in case you were curious. What are we going to see happen today? Miss more news over the weekend and of course the $700 billion federal bailout. What is it going to do to the market as well? That's the question. And we have someone with the answer.
CNN's Susan Lisovicz standing by at the New York Stock Exchange as we look at a live shot there of some of the traders.
Hi, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Did you think we were done with the bombshells that are being dropped by Wall Street?
COLLINS: Not even close.
LISOVICZ: Not a chance.
COLLINS: No.
LISOVICZ: Not a chance. At the beginning of the year, there were five independent investment banks on Wall Street, and then there are none. Goldman Sachs and Morgan Stanley going away, too. They are going to become bank holding companies under the supervision, the close supervision, I might add, of federal bank regulators. They'll face much more stringent capital requirements subjected to new requirements, additional oversight.
They will be forced to take less risk. Risk is a beautiful thing in good times. These are not good times and this is the latest bombshell as a result of the global credit crisis. And what's happening is we're seeing a modest sell-off overall. But Morgan Stanley shares are up 15 percent. Goldman shares are up 4 percent. Microsoft shares are up 15 percent. It had a big headline of its own this morning.
It's buying back $40 billion in its own shares and increasing the quarterly dividend. So Microsoft is higher. Hewlett-Packard shares looking for a share price on that. That's up 0.5 percent. That's a Dow 30 stock. It also says it's going to buy back its own shares. When companies are buying back, that means they have cash on hand to do so. They're also trying to boost the share price, obviously. And lately, we've been seeing some markets drop. So that's what they're doing to try to bolster their own share price. Another thing, another price that's going higher is oil prices. This is a result of the government's efforts to bolster the financial industry. Oil prices are up 2.50 at a $107 a barrel -- Heidi.
COLLINS: All right. We are watching all those numbers closely. Thank you, Susan.
LISOVICZ: You're welcome.
COLLINS: The economy, issue number one for you and the White House. CNN's Elaine Quijano is there this morning, sort of gauging the fallout, if you will.
Good morning to you, Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you, Heidi.
Well, you know, for Treasury Secretary Henry Paulson and his staff, they have been working around the clock trying to hammer out a deal with members of Congress on this $700 billion financial rescue plan.
Now, lawmakers do agree on the need to do something in order to help the situation on Wall Street, to help unstick, essentially, the U.S. financial market and get credit flowing once again. However, lawmakers on both sides of the aisle are also concerned about the enormous risk that taxpayers will have to assume. Yesterday, Secretary Paulson blanketed the Sunday talk shows arguing that doing nothing would be worse for the American people in the long run.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: It will be -- it could be a considerable cost, and I don't like the fact that the American taxpayer is bearing that burden. But it is far better than the alternative.
(END VIDEO CLIP)
QUIJANO: And in fact, in recent days, President Bush has laid out a worst-case scenario, talking about the possibility that if there is not government intervention, he argues, that credit would tighten up even further, that it would be harder for people to get loans for things like cars and automobiles and to get loans for college tuition.
Already, though, Democrats expressing a number of concerns, saying it doesn't make sense to pass through this legislation without additional provisions, including one that was not in the administration's original proposal. That is a measure to set limits on the compensation that is received by CEOs who are essentially at the helm of their companies during this financial meltdown.
(BEGIN VIDEO CLIP)
REP. BARNEY FRANK, CHAIRMAN, HOUSE FINANCIAL SERVICES COMMITTEE: You're telling us that have you made those decisions that require this taxpayer money, we can't limit the outside compensation you are getting? What does that say about corporate executives that they say to us, you know, this is absolutely essential to the system? You've got to do it. But if it's going to cost me a few of the very large number of millions I have, then I'm going to try to block it.
(END VIDEO CLIP)
QUIJANO: And that was Barney Frank, the chairman of the powerful House Financial Services Committee. Now, when will all of this come to ahead? The administration has said last week, they were looking at perhaps getting something done over the weekend. That obviously did not happen. The proposal sent overnight Friday into Saturday morning, negotiations continuing. They were not able to get a deal done by the time markets opened today.
Now lawmakers are signaling that, yes, they are willing to do the hard work to try and get something done before the end of the week, but certainly a lot of heated debate taking place on this issue here in Washington -- Heidi.
COLLINS: Yes, yes, absolutely, Elaine, obviously. We sure do appreciate that. Also, just quickly mentioning, President Bush likely to talk about this crisis when he heads to New York a little bit later today and addresses the U.N. So we will watch for all of that.
Elaine Quijano outside the White House. Thank you.
Presidential politics all about the big financial bailout and the economy today. Senator John McCain proposing a bipartisan oversight board to review the government's financial rescue plan. He's holding a town hall meeting in Scranton, Pennsylvania, next hour. Senator Barack Obama called the bailout a concept, not a plan.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: As of now, the Bush administration has only offered a concept with a staggering price tag, not a plan. Even if the U.S. Treasury recovers some or most of its investments over time, this initial outlay of up to $700 billion is sobering. And in return for their support, the American people must be assured that the deal reflects the basic principles of transparency and fairness and reform. We can't allow this to happen again.
They have run this government into the -- they have run this economy into the ground. We have got to make sure that we lift it back up, but we've got to have some rules in place to make sure it doesn't happen again.
(CHEERING and APPLAUSE)
First, there must be no blank check when American taxpayers are on the hook for this much money. Second, taxpayers shouldn't be spending a dime to reward CEOs on Wall Street while they're going out the door. (CHEERING and APPLAUSE)
Third, taxpayers should be protected and should be able to recoup some of this investment. Fourth, this plan has to help homeowners stay in their homes. Fifth, this is a global crisis. And the United States must insist that other nations join us in helping secure the financial markets.
(END VIDEO CLIP)
COLLINS: And just to remind you, we will of course hear from Senator John McCain as well. That will be happening next hour right here in the NEWSROOM.
Could a blown tire have caused a private jet to crash? That's what federal investigators in South Carolina are now trying to determine. Four people died Friday night when their Learjet crashed on takeoff at Columbia's Airport. Two well-known musicians, DJ Adam, DJ A.M. Goldstein, and former Blink-182 drummer Travis Barker were critically injured.
(BEGIN VIDEO CLIP)
WILLIAM OWENS, WITNESSED PLANE CRASH: I saw a ball of fire go across the highway, but I wasn't sure what I had just seen. These two were like running in circles. One of them was on fire. The other was trying to assist him. He managed to get out of his clothes and was standing there naked when I approached.
(END VIDEO CLIP)
COLLINS: And another deadly crash, a helicopter south of Milwaukee in Kenosha. The chopper went through the roof and out the front. Two people in the chopper were killed. The home's five family members surprisingly were unhurt. The homeowner thought his home had been hit by lightning.
(BEGIN VIDEO CLIP)
NOEL WILSON, CHOPPER CRASHED INTO HOME: Heard what sounded like thunder. There was a big boom. It was obvious to me something hit us. I thought it was lightning.
(END VIDEO CLIP)
COLLINS: And new concerns this morning about North Korea's nuclear program. The United Nations Nuclear Agency says Pyongyang has asked for seals to be removed from its main nuclear reactor. North Korea says it only wants to carry out tests that will not involve nuclear materials. But international watchdogs fear the communist nation could be inching toward its threat of restarting its nuclear program. There's also concern of political instability there amid reports leader Kim Jong-il has suffered a stroke.
We are following reports of tourists kidnapped in southern Egypt, 11 are Europeans, 4 are Egyptians. Egyptian media say 15 people in all were kidnapped near the border with Sudan. There is word of a ransom demand. So we're following that story as it develops here.
The last two stand-alone Wall Street investment banks are gone. What the new landscape looks like and how you fit into the picture.
(COMMERCIAL BREAK)
COLLINS: A show case for the babe and the pope, and hallowed ground for generations of fans. Yankee Stadium's home stand ends.
(COMMERCIAL BREAK)
COLLINS: Big changes on Wall Street. Two embattled icons take historic steps in these troubled times. So, will the ripples reach you? CNN's Christine Romans is "Right on Your Money."
We heard Susan a little bit earlier, Christine, that, you know, in the beginning there were five. Now there are none. We're talking investment banks.
ROMANS: It's remarkable. In a week a business model was proven to be broken and now has completely been changed. We're talking about Goldman Sachs and Morgan Stanley. Both of this company asking the fed to reclassify them as bank holding companies. And the Federal Reserve Bank said yes.
What this does is increases fed oversight over both. More regulation. It stream lines borrowing from the fed. It allows them to acquire retail banks perhaps, forces both of them to raise more capital and forces both to take less risk.
What this means, Heidi, is that on Wall Street this Monday morning, they are waking up to a whole new world. It is indicative of everything that we've been seeing happening in the markets, in the marketplace, and it really is sort of the punctuation mark on this entire crisis, that the entire business model is changing -- Heidi.
COLLINS: OK, so people at home watching this. We're obviously watching the Dow. We see that it's down triple digits. But what does this change mean specifically for people at home, their personal finances? I feel like a broken record asking that, but people want to know what am I going to see that's different at my bank or with my stocks, all of it?
ROMANS: It's part of a bigger story. And so you kind of have to stretch out a little bit to take this particular example and say what does it mean for Aunt Sally in Omaha as we like to ask around here. And what it means is that it alleviates some of the concern, some of the high-risk, highly leveraged situations that have been happening, and it goes toward soothing some of these problems in the market right now. And anything that can soothe the confidence problems in the market, frankly, allows banks to lend to each other, lets them stop hoarding cash.
And as that money gets moving and the confidence builds, then that comes down to all of the rest of us. So, that's where it fits in this -- I mean, you know, Aunt Sally isn't banking at Goldman Sachs probably so it's not going to directly change her. If Goldman Sachs buys a retail bank, then it will change her.
COLLINS: And we love Aunt Sally and we love Omaha, definitely.
ROMANS: Yes.
COLLINS: Don't we? Thank you. Christine, appreciate that.
ROMANS: You're welcome.
COLLINS: The passing of a legend. The New York Yankees close out Yankee Stadium last night with a win over Baltimore. But the game played second string of course to the end of an 85-year love affair. Look at those sad fans but happy because they won.
Fans were allowed on the field hours before game time. Many visiting monument park with its plaques to Yankee greats. Current and former players reflected on "The House that Ruth Built."
(BEGIN VIDEO CLIP)
DAVID CONE, FORMER YANKEES PITCHER: It really goes down to families, grand fathers and grandkids passing those memories down through. That's what made this place special. It's really the generations of fans and families that came here throughout the year.
DEREK JETER, YANKEES SHORTSTOP: Since I came up, I mean, these are the greatest fans of the world. This has been a lot of fun. It's been a fun 13 years, fun 14 years and I know it will continue over at the new stadium.
(END VIDEO CLIP)
COLLINS: The Yankees will move into a $1.3 billion stadium across the street next year. You see it there.
Meteorologist Reynolds Wolf. Hey, it's the first day of fall today. But I have to say -- I was just at Yankees Stadium like three weeks ago.
(WEATHER REPORT)
COLLINS: Pumps running dry, tanks running out. Post hurricane supplies slow down at gas stations and a lot of people wondering if somebody could just spare a gallon or two.
(COMMERCIAL BREAK)
COLLINS: Hurricane hangover with drivers in many states feeling the pain. Many southeast drivers are having to go to two and three gas stations to find a working pump.
CNN's Nicole Lapin reports from Atlanta on gas station shortages.
(BEGIN VIDEOTAPE)
NICOLE LAPIN, CNN CORRESPONDENT (voice-over): The search for gas is on in the southeast.
How many stations have you been to?
UNIDENTIFIED FEMALE: I've been to, like, four different stations. And I haven't gotten any gas.
LAPIN: Out, out, and out. And it's all because the colonial pipeline that runs from Gulf Coast refineries to dozens of states including Georgia, Tennessee and South Carolina has been running low since Gustav and Ike.
VOICE OF STEVE BAKER, COLONIAL PIPELINE SPOKESMAN: Since the hurricanes both hit, we have been tapping the reserves of the stockpiles of the fuels that were made before the hurricanes hit, and we've been delivering those. And that's caused us to operate at a reduced rate, less than we're capable of. So that's been part of the problem that we've faced, and we're trying to overcome.
LAPIN: Until then, many of Atlanta stations may be out of a certain grade if they're not totally out of gas.
How much would you pay for gas right now? If this station had gas and it was $5 a gallon, would you pay that?
UNIDENTIFIED FEMALE: Sure, yes.
LAPIN: You'd pay anything?
UNIDENTIFIED FEMALE: Yes.
LAPIN: Desperate drivers would pay anything.
UNIDENTIFIED FEMALE: All them people just waiting on gas.
LAPIN: But in Nashville some would do anything, too.
UNIDENTIFIED FEMALE: It's very scary. I've never seen anything like this.
LAPIN: When folks there heard there was a rumor that there was a gas shortage, they hoarded. And because of that, an estimated three- fourths of stations had no gas going into the weekend. Call it a self-fulfilling prophecy, whatever you call it, people are taking anything they can get.
Is it going slow?
UNIDENTIFIED MALE: It's -- yes, a lot slower than normal, I guess.
LAPIN: You're on empty?
UNIDENTIFIED MALE: No gas.
LAPIN: Few.
UNIDENTIFIED MALE: Yes.
LAPIN: So we have a little trickle. Every little bit helps, I guess.
UNIDENTIFIED MALE: Yes. I take what I can get, I guess. Right now, I've got almost a gallon. So that will get me somewhere.
LAPIN: Nicole Lapin, CNN, Atlanta.
(END VIDEOTAPE)
COLLINS: Probably not very far, though. We get another look at the southeastern gas shortages with our iReporter Scott Trent. Look at these pictures. He lives in suburban Atlanta. And took these pictures. He said he only found more than 30 stations without gas. And in one case cars were following a tanker to a station to fuel up. He's got himself. He's down to about one-eighth of a tank. And he has to get to work, of course. He's trying again to get some gas today.
Well, remember to send us your iReport. Just go to ireport.com. Or type ireport.com right into your cell phone.
A night to remember. Records set at the Emmy Awards. We've got some of the highlights.
(COMMERCIAL BREAK)
COLLINS: People are talking about this one today. Some Facebook users not too thrilled that the social network site has changed its look again. Valerie from Illinois doesn't like the new look too much. What do you think? Do you like the old look better? Send us your iReports on that. Go to ireport.com. We'll have your opinions coming up later.
So did you stay up late to watch the Emmys? If you had to be at work early, like we did, you might have missed the show.
But our Kareen Wynter was there and has the highlights for you.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: "Mad Men."
KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT (voice-over): On TV's biggest night, one thing was clear. Emmy was mad for "Mad Men." The AMC show made history as the first basic cable program to win Outstanding Drama Series.
JOHN HAMM, ACTOR, "MAD MEN": It's just an incredible time. It's an incredible honor to be star in our show. And I can't say enough about it.
WYNTER: Basic cable sports other big drama wins. Glenn Close won lead actress for FXs "Damages." And Bryan Cranston was the surprise Lead Actor winner for AMC's "Breaking Bad." BRYAN CRANSTON, ACTOR, "BREAKING BAD": This is just such a wonderful icing to a great cake.
WYNTER: The address for comedy this year was "30 Rock." Outstanding Comedy Series, acting and writing trophies for Tina Fey. And lead actor Alec Baldwin's first Emmy in seven tries.
ALEC BALDWIN, ACTOR, "30 ROCK": To tell you the truth, I would have bet money Carrel was going to win. I mean, I totally thought Carrel would win. So when I won, I was very shock and very happy.
WYNTER: In the supporting comedy categories, Jean Smart won for Samantha Who. While Jeremy Piven earned his third Emmy in a row for playing Ari Gold, a fast talking agent of "Entourage."
(on camera): This is the first time the primetime Emmy Awards had been held at a new Nokia Theater in downtown Los Angeles, and all 30 awards were handed on a stage that was shared by five co-hosts.
(voice-over): One of those hosts, Survivor's Jeff Probst became the first ever recipient of the Reality Show Host Award.
JEFF PROBST, HOST, "SURVIVOR": It feels really good to be a part of the first group and to be the guy lucky enough to get recognized for it.
WYNTER: On such a historic night, perhaps it was fitting that the biggest winner was a miniseries focused on history. The revolutionary war drama "John Adams" broke the record for Emmy wins, nabbing a lucky 13 trophies, including Miniseries. Lead Actress for Laura Linney and Lead Actor for Paul Giamatti who played the title role.
PAUL GIAMATTI, ACTOR, "JOHN ADAMS": I'm living proof, kids at home watching, that anybody can play the president.
WYNTER: Kareen Wynter, CNN, Hollywood.
(END VIDEOTAPE)
COLLINS: Facelift for a well-known figure. The penny going through some changes. What you'll be seeing in your pocket.
(COMMERCIAL BREAK)
COLLINS: New week, continued financial worries. We're watching Wall Street and Washington. $700 billion bank rescue plan now in the works. More historic money. Two famous houses undergo an identity change. The death of the investment bank. This hour, what it all means to you.
I'm Heidi Collins. Today is Monday, September 22nd.
You are in the CNN NEWSROOM.
