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Democrats Want to Tweak Financial Rescue Plan; Conflicting Reports Regarding Pakistan Hotel Bombing
Aired September 22, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And good morning again, everyone. I'm Tony Harris. It is Monday, September 22nd. Happy fall. And here are the headlines in the CNN NEWSROOM.
Stocks stumble on Wall Street. New concern after Democrats indicate they'll tinker with the big financial industry bailout plan.
Running on empty in the south. Ten days after Hurricane Ike put a kink in gas supplies, parts of the south run dry.
Did Mayor Palin refuse to let her town pay for rape kits? Critics call it outrageous. Supporters call it a lie. We take a closer look.
And skimming the water at 145 miles an hour, then boom. Take a look at this. I will be talking with the man who was driving that boat. Yes, he's alive and in the NEWSROOM.
America's money crisis. Here's where things stand right now. It is certainly issue #1.
President Bush pressing Congress to move on the $700 billion financial industry rescue. Democrats say they see the urgency to complete a bill by Friday, but some want to tweak the plan to include taxpayer guarantees. Maybe even another stimulus plan.
The last independent investment houses still standing on Wall Street are throwing in the towel. Goldman Sachs and Morgan Stanley will become traditional banks, hoping cash from depositors help their bottom lines.
Investors are selling today, apparently concerned Congress might not get the bailout done in a timely fashion. As you can see, the Dow is down 187 points. That's a bit off of session lows, believe it or not. The index rallied some 800 points Thursday and Friday on news of the government's proposed financial fix.
The CNN money team is covering the financial bailout today. Susan Lisovicz is at the New York Stock Exchange; Brianna Keilar on Capitol Hill; and Christine Romans at the business desk in New York.
(BUSINESS REPORT)
HARRIS: You know, Congress is planning to go home to campaign Friday. Will it get the financial fix in place first?
CNN's Brianna Keilar is at Capitol Hill.
Brianna, good to see you. What are you hearing?
BRIANNA KEILAR, CNN CORRESPONDENT: Well, Tony, you know, Democrats say, look, we're fine with the price on this proposal, we're fine with the strategy of having the government get involved by taking all of these bad mortgage-backed securities off the hands of financial institutions, but Democrats are saying they want to see more. Actually, Democrats and Republicans both saying they want to see more oversight so they know exactly how this money is being spent, but Democrats in particular, they say they want to see the government getting more involved in refinancing individual homeowners, those homeowners who are at risk of foreclosing on properties.
And another big thing that we're hearing about, Tony, is they want to limit executive pay. What Democrats don't want to see is taxpayer dollars, billions of taxpayer dollars, buoying corporations and then corporations turning around and paying huge salaries and severance packages to their CEOs.
HARRIS: Well, Brianna...
(BEGIN VIDEO CLIP)
REP. BARNEY FRANK (D), CHAIRMAN, FINANCIAL SERVICES COMMITTEE: You're the CEOs and the top people who made these decisions that are requiring the taxpayers to put money at risk, and we don't think we're going to spend -- we're certainly not going to spend $700 billion ultimately, but we're putting it at risk before we know how much we'll recover. And you're telling us that having made those decisions that require this taxpayer money, we can't limit the outside compensation you're getting?
(END VIDEO CLIP)
KEILAR: Now, Treasury Secretary Henry Paulson is urging, of course, the passage of something that is quick and clean, basically saying Congress can't solve all of the financial woes in one fell swoop, and they should just put forward this quick and clean legislation, and then follow up with other legislation.
Take a listen to Treasury Secretary Paulson.
(BEGIN VIDEO CLIP)
HENRY PAULSON, TREASURY SECRETARY: First stabilizing the market, that is only part of it. Once we stabilize the market, we need to ask ourselves, how did we get here and what do we do about it so we don't get here again?
(END VIDEO CLIP)
KEILAR: So negotiations continuing here on Capitol Hill, so are hearings, because tomorrow we're going to see Secretary Paulson, as well as Fed Chairman Ben Bernanke and Christopher Cox, head of the SEC, before the Senate Banking Committee -- Tony. HARRIS: Wow. Brianna, you know, it's not just American corporations that might benefit from this bailout. Explain that side of the story to us.
KEILAR: Yes, this is a bit of a touchy subject because, in particular, we heard from Christopher Dodd, who is chairman of the Senate Banking Committee, and he said that they're looking at non- American corporations, financial institutions, benefiting from this bailout money. He named, for instance, UBS by name because he said, even though these may not be American corporations, their health is tied to the health of the American economy, and so it's in the best interest of the U.S. to consider them in this program.
HARRIS: Brianna Keilar on Capitol Hill for us.
Brianna, thank you.
A couple of questions here. How will the bailout work, and what if there is no bailout?
Business Correspondent Christine Romans is in New York.
A couple of questions that we asked last hour. And give us your best thinking on this, Christine.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, I'm going to tell you, there's even more than just a couple of questions. There's a lot of questions. And as Susan said, there's no blueprint for this. We've never done it before, and so there's a lot of anxiety about how quickly we're going to do it, are we going to get it done, and then if it's even going to work.
I mean, some people are telling me that even if you spend the $700 billion, at least $700 billion, you could still see more bank failures. Diane Swonk also told me and Mark Zandi from MoodysEconomy.com said, you know, the worst of the economy, the economy, isn't behind us.
You're going to see more job losses, you're going to still see a tough end of the year. Maybe things could turn around next year, but that's going to lag, all this. So, you know, for people sitting at home, just because there's a $700 billion bailout doesn't necessarily mean things are going to feel better right away, too.
So the nuts and the bolts, $700 billion, we've all seen this three-page blueprint. And I know you've all got a lot of questions.
HARRIS: Yes.
ROMANS: We're raising the debt ceiling to $11.3 trillion. It's a very big number. We know the Treasury is going to be responsible for this, but there are a lot of sort of academic questions today about how they're going to buy back these toxic securities, how long are they going to hold them, what are they going to do with them, is it even going to help homeowners, or is it just going to help the banks. So a lot of questions there. What we do know is what the economy could look like without a bailout, and we know that, as Susan says, the people who are not prone to dire language have been using some very dire language behind closed doors and getting Congress really behind this. Companies can't make payroll or pay their bills, they're not going to hire people. In fact, they're going to lay people off.
Consumers and small businesses can't get loans. Corporate profits fall, that hurts government revenue at a time when you're already seeing burgeoning budget deficits.
Housing prices fall, and fall hard and fall fast. Property taxes decline. And look, funding drives up for schools and local services.
We've seen some of these things already start to happen. And one way, Tony, I guess -- it's really a big confidence gain, too. I mean, you've got to have confidence in these financial institutions, otherwise they're not lending money to each other. And if they're not lending money to each other, then the rest of us aren't getting loans and people are pulling in our home equity lines of credit, and we're not getting car loans and we're not getting student loans.
HARRIS: Yes. Yes. Yes.
ROMANS: And all of that just chokes the economy. And if the economy is choked and we don't grow, then everybody hurts.
HARRIS: And Christine, look, I'm looking at the markets and the Dow is down 197 points, almost 200 points on the day so far. And we understand that part of that, we're led to believe, is because the traders are responding to questions being asked about the plan, the bailout plan.
Do you believe for one minute that once the plan is approved, that the next Congress will come in and put in place the safeguards, the new regulations that we're hearing so much about now, that weren't in place to prevent this?
ROMANS: Well, I'll tell you one thing from covering markets for 15 years, there are always unintended consequences when you try to legislate something that has to do with money and markets. I mean, that's what people are concerned about. There are always unintended consequences.
But what we're also hearing is that that is a risk that has to be taken. And this has got to be done fast because the certainty is much, much worse.
HARRIS: Yes.
ROMANS: So, this is just -- this is all -- you know, and it's who do you trust? It's who do you trust?
HARRIS: I think you've hit...
ROMANS: The banks have already gotten us into a whole heap of trouble.
HARRIS: Yes.
ROMANS: You know, and I'm going to say one last thing.
HARRIS: Sure.
ROMANS: You know, a couple of people have said to me, listen, this is all about people at its core. This is about people who took home loans and they couldn't afford it. This is about people getting more than they could afford.
And I've heard an awful lot -- there's a lot about this going on, on talk radio, too. And I'll say that more than one sort of mayor and county attorney and Wall street guru has told me, you know, poor people did not get us into this trouble, the banking sector got us into this trouble. Banks got into this trouble.
HARRIS: Thank you for that, Christine.
ROMANS: And now taxpayers are going to pay for it.
HARRIS: Thank you for that.
ROMANS: You're welcome.
HARRIS: Christine Romans in New York.
You know, I think it's time we heard from you. This morning, we asked a few Americans what they thought of the bailout plan.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I think that it's going to make it even worse. It's going to make it even worse because you bail them out, then what's going to happen after that? How are they going to keep it up?
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think it's just a short-term fix. Nothing's being done for the long term. And I don't like my tax dollars going to bail out private companies. That's what I want to ask, what about the CEOs of these companies, Goldman Sachs, Lehman Brothers? Are they not being held accountable for their actions?
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Well, I assume we have adults in charge and they know what they're doing just like your auto mechanics. I mean, they tell you you need a distributor and you get a new distributor.
What do I think? I wish it didn't happen, but it happened. And so I think we need to get some adults in charge and try to fix it.
(END VIDEO CLIP)
HARRIS: Where are the adults? We want to hear from you. What do you think about this financial mess? If you want to sound off, send us your iReports. Just click on to ireport@cnn.com.
New questions this morning about this weekend's massive suicide truck bombing in Pakistan.
(COMMERCIAL BREAK)
HARRIS: Well, North Korea's nuclear request? This morning, it asked the U.N. inspectors to remove surveillance equipment and seals from its main nuclear plant. North Korea told the International Atomic Energy Agency that it wants to perform non-nuclear testing at the reprocessing site. The request comes one week after North Korea threatened to restart its nuclear program over stalled negotiations.
Conflicting reports coming in about the massive weekend explosion in Pakistan. At least 53 people were killed in the suicide truck bombing at a Marriott hotel.
CNN's Dan Rivers has the latest.
(BEGIN VIDEOTAPE)
DAN RIVERS, CNN INTERNATIONAL CORRESPONDENT (voice-over): Was this supposed to be an epic political assassination taking out Pakistan's entire leadership? The shattered interior of one of the ambassador suites shows this devastating nature of the blast.
Upstairs, the charred remains of the bedrooms. The Interior Ministry says the president and senior officials would have been right here at the Marriott Saturday night, save for a last-minute change of plans.
The hotel's owner denies there was any such booking, but whoever this carnage was intended for, it ended up being the hotel's staff and guests who bore the brunt. Everywhere, discarded reminders of those who perished and evidence of the tight security that failed to prevent this carnage.
(on camera): This is what 600 kilos, more than 1,300 pounds of high explosives, does to the earth, gouging out this huge crater. You can only imagine what that force of explosion would have done as it slammed into the Marriott and the people working there.
(voice-over): Mohamed Asim led a four-man security team at the Marriott. He was the only one to survive.
MOHAMED ASIM, SURVIVOR: One big noise (ph) after that. Nothing can happen. Everywhere smoke.
RIVERS: And Mubashir Ali had only been working at the hotel (INAUDIBLE) desk for six months. MUBASHIR ALI, SURVIVOR: I saw some glass in the truck. And there was lots of fire around the truck. I prayed to my God.
RIVERS: But this 22-year-old's eyes are badly damaged. He has seen nothing since that blinding flash.
It's not clear whether Pakistan's political leadership was the intended target. In the end, that's not who was killed and maimed.
SADRUDDIN HASHWANI, OWNER OF THE MARRIOTT: The security did the best. They had given their very lives. And I'm feeling sorry not for this hotel, I don't care. I can build 10 more hotels. But I'm feeling sorry that I've lost 45 people of mine. They want it to stop.
RIVERS: This country may have narrowly avoided a political catastrophe, but there are many critical unanswered questions about this attack and what it means for the future of this troubled nation.
Dan Rivers, CNN, Islamabad.
(END VIDEOTAPE)
HARRIS: Republican presidential candidate John McCain on the campaign trail this morning. He spent a lot of his time talking about the big bailout for the financial sector, and he mixed in some criticism for his opponent.
Listen to what he told a town hall gathering in Scranton, Pennsylvania.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Senator Obama has declined to put forth a plan of his own in a time of crisis when leadership is needed. Senator Obama has simply not provided it. And the truth is that we don't have time to wait for Senator Obama's input for our nation to act. I think it's clear that Congress must act and act quickly.
And I laid out my plan and my priorities last Friday. I spoke to Secretary Paulson about it over the weekend, and I've been looking at the plan that the administration has put forth. I urge Congress to study this proposal carefully as they consider the remedy for this crisis.
(END VIDEO CLIP)
HARRIS: McCain has a stop in Philadelphia this afternoon. And later, he and running mate Sarah Palin attend a rally in Media, Pennsylvania. That's at 5:30 Eastern.
Barack Obama in Green Bay, Wisconsin, this afternoon. He was talking tax cuts during a stop in North Carolina yesterday.
(BEGIN VIDEO CLIP) SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: What I mean by change, change means a tax code that doesn't reward the lobbyists who wrote it, but rewards the American workers and small businesses who create wealth and who deserve it.
(APPLAUSE)
I will stop giving tax breaks to corporations that ship jobs overseas. I'm going to give tax breaks to companies that create good jobs right here in North Carolina.
(APPLAUSE)
I'll eliminate capital gains tax for small businesses and startups. That's how we'll grow our economy and create the high-wage, high-tech jobs of tomorrow.
(END VIDEO CLIP)
HARRIS: Not that we have to, but let me remind you again that John McCain and Barack Obama have their first debate Friday, this Friday. CNN of course will bring that to you live.
Out of gas, long lines at some stations, empty pumps at others. We will tell you where and why.
(COMMERCIAL BREAK)
HARRIS: That's what I'm talking about here. You know, your gas gauge is on "E," and the station is out of gas. That is the situation facing some drivers in the Southeast. The reason, a pipeline that runs from the Gulf Coast refineries to the region disrupted by hurricanes Ike and Gustav. AAA says supplies are improving by the day, but the search for gas is really frustrating.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: How many stations have you been to?
UNIDENTIFIED FEMALE: I've been to, like, four different stations. And I haven't gotten any gas.
UNIDENTIFIED FEMALE: It's very scary. I've never seen anything like this.
(END VIDEO CLIP)
HARRIS: Oil prices are soaring nearly $5 today -- when did that happen? -- but some companies are offering an energy fix for frustrated drivers. How about getting from one major city to another for just $1? It is the latest trend in the bus business.
CNNMoney.com's Poppy Harlow has our "Energy Fix." There she is from New York.
All right, Poppy. I'm interested. You peaked my curiosity. POPPY HARLOW, CNNMONEY.COM: Yes, right, $1 getaway, it gets about anyone's attention.
HARRIS: Yes.
HARLOW: Now, these days, you know what, Tony? It looks like people want to be in the cheap seat. Maybe not at the Yankees' game, but certainly when it comes to riding on a bus.
That's prompting a big change in the bus industry. Discounters like Bolt Bus, Mega Bus, they're popping up all over the place. They come complete with marketing gimmicks to reel in drivers who can't or really just don't want to pay to fill up their own tanks.
The hook is a bus ride for as little as $1. Bolt Bus offers one ticket on every trip for just a buck. Mega Bus offers at least one $1 seats sometimes. Prices go up just a little bit from there.
(BEGIN VIDEO CLIP)
DAVID HALL, GENERAL MANAGER, BOLT BUS: The average fare today is probably about 17 or 18 bucks on average, which you can't hardly take a cab ride across the city or get a hamburger for lunch for 18 bucks anymore. So I think it's great value.
(END VIDEO CLIP)
HARLOW: It certainly is a good value. Bolt Bus travels between Philly, New York, Boston, D.C. And Mega Bus covers all those city, also Toronto. And Tony, 18 cities across the Midwest. So a pretty good deal.
HARRIS: Well, how do you do it? How do you go about getting one of those $1 fares?
HARLOW: Yes, you have to book in advance, just like airline tickets.
HARRIS: Yes.
HARLOW: The $1 fares go fast in these times of high oil and gas prices. As you said, oil up about 5 bucks today, right around $109 a barrel.
Your best bet, get online, book those tickets ahead of time. Of course you have better look if you book on off-peak days and times. But this is interesting. Check out these statistics.
Bolt Bus says demand is so high it turned a profit in just two months after the company started operating. Mega Bus said it's seen an 80 percent year-over-year growth on a lot of its routes. Also, you're doing good for the environment.
HARRIS: Yes.
HARLOW: One bus takes about 30 cars off of the road -- Tony. HARRIS: Just something else to think about. Another way around this. All right.
Poppy Harlow for us this morning -- I'm sorry, this afternoon.
Thank you, Poppy.
HARLOW: You're welcome.
HARRIS: You know, it takes a whole lot of zeros to bail out the financial industry, and you are paying for it.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think at least people are feeling like, well, wait a minute, what about me? I've got this -- I'm trying to keep my house. I'm trying to feed my kids. And I'm still paying for this?
(END VIDEO CLIP)
HARRIS: What you need to do now to protect your bottom line.
(COMMERCIAL BREAK)
HARRIS: Coming up on the half-hour. Welcome back, everyone, to the CNN NEWSROOM.
I'm Tony Harris.
We're going to get to Gerri Willis in just a moment, but very quickly here, we want to give you another look at the Big Board, the New York Stock Exchange right now, as you can see.
You know, the Dow has been hovering in this range throughout the day so far as we reach the noon hour, the lunchtime hour here on the East Coast. And you look at this. The Dow down 189 points, slightly off session lows. We've been close to 200 points negative through most of the morning. We're going to continue to keep an eye on the markets. And what we were hoping for was a bit of a rebound, but the futures market indicated that we would get off to this kind of a start.
Here's a question for you. Are you sinking in a bit of financial quick sand? Maybe you need a life line. Personal finance editor Gerri Willis is here, as advertised.
GERRI WILLIS, CNN CORRESPONDENT: Hey, Tony.
HARRIS: Gerri, a quick question. What should people do right now if they want to be sure they don't actually go under?
WILLIS: Well, look, you want to take stocks from your account. Figure out what you have in each of your accounts, including savings, checking, CDs, joint accounts. That's because your money will be protected up to certain limits by the FDIC if you bank fails. Now here are the limits. You have coverage up to $100,000 for individual accounts, $200,000 for joint accounts, and $250,000 for retirement accounts. And the reality is, Tony, you can have more money than this at one bank as long as you divide your funds up of various ownership categories. Credit unions have the same limits. And if you exceed these limits, move that money around to another bank or credit union.
Look, if you've got a brokerage account, there's a protection, too, for up to half a million dollars for securities. Take a look at your money market accounts. The U.S. Treasury just said they'll stand behind those money market mutual funds. You don't have to worry about losing money. If you do want to swap into something safer, make sure you're in a money market account that invests in Treasuries.
Tony.
HARRIS: Hey, Gerri, what do you say to folks who are worried about their insurance accounts, especially after AIG -- the problems with AIG last week?
WILLIS: Look, you know, the problems we saw with AIG were with the parent company, not with the insurance business. Now I know a lot of folks out there, they had annuities, life insurance policies. You don't have to worry about these because they're protected. They're held separate from the main company. Insurance policies are also protected by state guarantee funds if your insurer goes out of business, which is not what happened here. It was bought by the government. But check with your agent or your own state's guarantee fund because the limits, they vary widely. And something to note, to keep in the back of your head, if that it does happen to you.
HARRIS: Good advice. Good tips, as always.
Gerri, thank you.
WILLIS: My pleasure.
HARRIS: You know, more businesses are reopening and the power is coming back on, but the Gulf Coast still faces a long road to recovery from Hurricane Ike. Here's the very latest.
More than 1,600 evacuees housed in north Texas are going home today. Shelters around Ft. Worth are closing and evacuees are returning to the Houston, Beaumont and Baytown areas. Galveston Island reopens Wednesday, but officials warn it may be weeks before basic service are completely restored.
And back to class. Enough power has been restored in the Houston area to allow some schools to reopen for the first time since Hurricane Ike. Our affiliate KHOU says the Texas Education Agency is not asking the students to make up the days they missed because of Ike, but some school districts do plan to make up those days.
Let's get a quick check of the weather now. A pretty decent day across much of the . . .
JACQUI JERAS, CNN METEOROLOGIST: Yes, I bet those kids are happy they don't have to make that up, huh?
HARRIS: But what are you starting with? Is that a tropical disturbance there, a depression? What are you seeing there?
JERAS: Well, it's a disturbance right now. You know, we've been tracking this thing for a couple of days. It hasn't been moving a whole heck of a lot. And it certainly has some very good potential here to become a tropical depression, probably Tropical Storm Kyle. And that could happen really any time.
In fact, the hurricane hunters are going to fly into this. They should be leaving about a half an hour from now. And they're going to see -- you know, basically we've got just not enough organization to classify it just yet. It needs to have that closed circulation, as we call it. You know, the wind going in all directions in a circle, you know, near that center of low pressure. And that hasn't happened yet. But we think it probably will as the winds are becoming a little bit more favorable.
But even though, you know, we're not calling this anything yet, this has been bringing some torrential downpours across much of Puerto Rico. In fact, Doppler radar has been estimating 10 to 20 inches of rain in the last 24 hours in southern parts of Puerto Rico. The rain still coming down at this time and an additional four to eight on top of what you already have. So lots of reports of downed trees, lots of reports of flooded streets and flooded homes as well. So this will be a grave concern.
And something else to think about, you know, this thing is kind of drifting on up to the north, northwest and we're real concerned this is going to be moving over towards, you know, Haiti and the Dominican Republic, which has just been devastated by four consecutive tropical systems in that area. So certainly some not good news here.
Where is it going? Well, the models are still a little bit in disarray here. Once this system has a little bit more organization, we'll have a better idea. But everything's kind of bringing it out towards the north. Too early to tell what kind of an impact this could have on the U.S. But East Coast folks need to pay very close attention to what we're going to be seeing here happening. We could possibly get an advisory on this one as early as the 5:00 hour.
Elsewhere today, across the lower 48, a chance of severe thunderstorms across the Dakotas, down through the panhandle of Nebraska. Some gusty winds up ahead of that. But that's ushering in some very pleasant temperatures for you. And yet today is that first day of fall. I broke out my chocolate colors just for the occasion.
HARRIS: Outstanding.
JERAS: It happened 11:04 a.m. Eastern Time. And really kind of lovely weather overall, Tony. You know, you can't complain to much.
HARRIS: No, you really can't.
JERAS: A lot of crisp air up north and it's still kind of nice and mild here across parts of the south.
HARRIS: We're going to start to get some i-Reports of leaves changing and that sort of thing.
JERAS: That would be lovely, yes.
HARRIS: That's a lot of fun, huh?
JERAS: Yes, bring them on. Send them, ireport.com.
HARRIS: Did I just solicit for leaves changing and -- I think I just did?
JERAS: There you did. I'll take them. I love them. I use them, I promise.
HARRIS: All right, Jacqui, thank you.
You know, more than three years after a deadly shooting rampage at an Atlanta courthouse, the trial is beginning today for the alleged gunmen, Brian Nichols. He's accused of killing a judge, a court reporter and a sheriff's deputy at the Fulton County Courthouse. He is also charged with killing a federal agent later that same day.
Take a look at this. Surveillance video of Nichols in a parking garage shortly after the courthouse shootings. He trial has been plagued by complications and delays. Prosecutors are seeking the death penalty.
In Los Vegas, the O.J. Simpson trial moves into its second week. Today, the defense team gets a chance to question collectibles dealer Thomas Riccio. Simpson is accused of armed robbing and kidnapping in an alleged attempt to steal sports memorabilia from a casino hotel room. And Riccio secretly recorded the whole incident. And you can watch the Simpson trial online at CNN.com/live or our sister station, "Headline News," all this week, starting at 9:00 a.m. Pacific, noon Eastern, basically right now.
Victims of rape having to pay for exams.
(BEGIN VIDEO CLIP)
TARA HENRY, FORENSIC NURSE, RAPE RESPONDER: Having a victim have to pay then for their exam is just, you know, re-traumatized them.
(END VIDEO CLIP)
HARRIS: It has become an issue in the race for the White House.
(COMMERCIAL BREAK)
HARRIS: Political maneuvering underway in Israel. Ehud Olmert is now the interim prime minister. He handed in his resignation yesterday amid multiple corruption investigations but he is staying on until there is a replacement. Olmert's successor will be selected either by forming a new coalition in the current connesit (ph) or through new general elections.
New leadership also coming to South Africa. Government sources tell CNN, the country's ruling party will name its deputy president to succeed Thabo Mbeki. This comes one day after Mr. Mbeci formally announced his resignation on national television. His party pressured him to quit after a judge threw out corruption charges against the party's leader who was Mbeci's arch rival. The judge accused Mbeci's administration of interfering in that case. Mbeci had been president for almost 10 years.
Check your calenders. Six weeks and a day until the big election. Kentucky, Virginia and Georgia not waiting. Those states allowing early voting. In Georgia, early voting is expected to shatter records. Like many states, Georgia has seen a surge in voter registration. Several states have expanded early voting provisions, others have relaxed their absentee voting rules.
John McCain's running mate, Sarah Palin, taking criticism for her time as mayor of Wasilla, Alaska. The issue, police making rape victims pay for investigative exams. CNN's Jessica Yellin traveled to Alaska for this story.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN CORRESPONDENT, (voice over): Multiple sources tell CNN, when Sarah Palin was mayor of Wasilla, her police department charged some rape victims the cost of the forensic exam they get after an attack. Her police chief said it was not a cost the town should bear. Eric Croft, Senate Democrat in the state legislature, sponsored a bill to force Wasilla to pay.
ERIC CROFT, (D) FORMER STATE REPRESENTATIVE: I mean it was just one of those things that everybody could agree on except Wasilla. We couldn't convince the chief of police there to stop charging them. And so I introduced a bill in January in the legislature to prohibit that.
YELLIN: Experts testified that charging rape victims was incomprehensible, comparing the exam to dusting for fingerprints, only the victim's body is the crime scene.
TARA HENRY, FORENSIC NURSE, RAPE RESPONDER: And having a victim have to pay then for their exam is just, you know, re-traumatized them.
YELLIN: At the time, some other small Alaska cities also charged rape victims. This woman says she was billed by a city hundreds of miles from Wasilla. But Mayor Palin's city stood out.
HENRY: What I recall is that the chief of police in Wasilla, Wasilla PD, seemed to be the most vocal about how it was going to affect their budget. YELLIN: After the bill past unanimously, Wasilla's police chief, Charlie Fannon, said it would cost the city $5,000 to $14,000 a year. And he objected saying, "I just don't want to see any more burden put on the taxpayer."
Judy Patrick was Palin's deputy and a friend.
JUDY PATRICK, DEPUTY MAYOR/WASILLA CITY COUNCIL: The bigger picture of what was going on at that time was that the state was trying to cut their own budget. And one of the things that they were doing was passing on costs to cities. And that was one of the many things that they were passing on to the cost of the city.
YELLIN: She doesn't recall the issue coming before city council. And we found no record that Palin was aware her city was charging rape victims. The McCain campaign says Palin has "never believed that rape victims should have to pay for an evidence gathering test." And to imply she did "is an utter distortion of reality." Those who fought the policy are unconvinced.
CROFT: I find it hard to believe that for six months, in a small town, a police chief would lead a fight against a statewide piece of legislation, receiving unanimous support, and the mayor not know about it.
YELLIN: Though Croft admits he can't recall discussing the issue with Palin.
The rape kit charges have become an issue among Palin's critics because some say, as governor, she has done little to combat Alaska's epidemic problem of violence against women. For years, Alaska has had the worst record of any state in the rape and murder of women by men. For the record, as governor, Sarah Palin approved a funding increase for domestic violence shelters and re-authorized a council on domestic violence and sexual assault. But this year, that council found some of Alaska's programs responding to violence against women remain underfunded.
Other cities around the nation also once billed victims the cost of their rape exams. But now that practice is rate. To qualify for funding under the Violence Against Women Act, law enforcement agencies now must pick up that cost.
Jessica Yellin, CNN, Anchorage, Alaska.
(END VIDEOTAPE)
HARRIS: And there's this. In Arkansas, six children have been taken into temporary state custody after a raid on a religious compound. The compound is run by Tony Alamo Christian Ministries Church. It is being investigated on charges of possible child sexual abuse and pornography. Yesterday on the phone with CNN, the founder of the church, Tony Alamo, denied any wrongdoing.
(BEGIN VIDEO CLIP)
DON LEMON, CNN CORRESPONDENT: Why would they just make up these allegations against you, Mr Alamo?
TONY ALAMO: Well, why did they make up allegations against Jesus and nail him to the cross? They will not find any pornography there. There is none. There never was any -- and there's child abuse or child pornography or anything like that. They're barking up the wrong tree this time.
(END VIDEO CLIP)
HARRIS: Well, so far, no one from the compound has been arrested.
Traveling at high speeds. A boat breaks apart into a gazillion pieces. The driver swims away. No way. My conversation with him, next.
(COMMERCIAL BREAK)
HARRIS: So have you seen this? A hydroplane racing boat crashes going 180 miles per hour. The boat practically in splinters. Take a look at that. The driver survives with just a few scratches. You know, I still don't believe that. It happened in San Diego Friday. And here's the driver now. Mark Workentine joining us from New York.
Mark, really? I mean, come on. Did you -- everything attached, arms, elbows, knees, toes? Is everything attached?
MARK WORKENTINE, BOAT RACER: Everything's here, man. It all made it to New York with me, thank goodness.
HARRIS: Are you -- so how do you explain the fact that you survived this in good shape it appears?
WORKENTINE: Yes, it was. You know, it was a perfect crash. The boat didn't do anything. You know, it was a crash and it flipped and, I know, but it -- I was lucky. I was really lucky. I had good safety equipment. I had the honing device on. The safety capsule in the boat, you can see it in the video, flies out. It gets me clear of the motor and everything else that can cause injury to you. And just, you know, it was just a lucky deal. Glad to be sitting here in New York City instead of in the hospital in San Diego.
HARRIS: Mark, what happened?
WORKENTINE: We were just out there testing and tuning on Friday. We were getting ready to qualify at the Thunderbolt Regatta for the Lucas Oil Istrea (ph) drag boats on Saturday. And we had a different set of propellers on it. We wanted to try them out. And as driver, I've got to get out there and see what that thing's going to do so I can come back and tell the crew what we need to do to it. And the thing launched on me, left real nice, but it started hopping and I took it just a little bit too far. I wanted to see if it -- it felt like it was going to come through, but it didn't. And as you can see at the end there, it got away from me.
HARRIS: So did you -- were you, at any point, knocked out of this sort of protective capsule that you're in? Were you actually in the water? We mentioned a moment ago that you actually were able to swim to safety here. Were you tossed around? I'm just trying to understand what you felt.
WORKENTINE: Actually, no, I never swam anywhere. You see the capsule right here at the end of the crash when it ejects out of the boat. And right at the very end you'll see the last piece landing right in the water. Right there. That big piece going in on your left side of the screen.
HARRIS: That's you?
WORKENTINE: That's me. I'm inside that. That's when the IHBA rescue boat comes and get you and takes you over to the ambulance onshore.
HARRIS: Mark, what did you feel? I mean I think that's the -- I mean you're looking -- as I look at you now, there's no brace around your neck. So I guess we're not talking about whiplash. Doesn't appear to be the case that you have some kind of concussion. What did you feel?
WORKENTINE: You know, I didn't feel a whole lot. My legs and arms got beaten around quite a bit. You know, at that time, you're just waiting to see what happens at the end, you know. Finally when that capsule stops rolling, then you see it floating in the water, I realized that my legs were OK, arms were OK, back, neck was OK. Everything was in good shape. And I couldn't believe it. You know, I wanted to get out of that thing quick, that's for sure. But I was just glad to be OK. And when I seen those rescue guys, that was great.
HARRIS: So we heard you narrating the crash here just a moment ago. What was your reaction when you first saw these pictures?
WORKENTINE: Oh, you know, it was pretty bad to watch it. You know, it's kind of embracing (INAUDIBLE) Crash one, but that's, you know, it happens with these things. These things have 700 horsepower and they go from zero to 200 miles an hour in under three seconds. So it's a wild ride. And that time it was a little to wild for me.
HARRIS: What were some of the comments on your voice mail?
WORKENTINE: On my voice mails?
HARRIS: Yes, yes, on your voice mail on your cell phone?
WORKENTINE: Oh, yes, I think my mom threatened to beat me up on my voice mail actually but she wasn't there to watch it.
HARRIS: When are you -- how long before you're back in the boat again?
WORKENTINE: We plan -- we'll try to be back for the world finals in Phoenix, Arizona. The HBA Lucas Oil World Finals. And I'm not sure if that's going to happen. If not, we'll be back next year. HARRIS: Notice how I asked that question because I knew it was just a matter of when, not if, because that's the kind of guy you are. You were definitely always getting back in the boat, huh?
WORKENTINE: Oh, yes. You know, the next day I would have been ready to run again if we would have had a spare boat with us. So hopefully we can get out and find some sponsors and put another one together here real quick.
HARRIS: Well, good luck with the sponsors after that wreck. Good luck with that.
WORKENTINE: Yes, no kidding. Yes. Well, they can find me at G&Gmotorsports.com. That's the motor sports market. And if they want to find me, that's where they can find me.
HARRIS: Mark, it's great talking to you and great to see that you're OK. And good sport sense of humor in tact. Thanks for your time. We appreciate it.
WORKENTINE: Thanks, Tony.
HARRIS: All right. Now closing the history books. Yankees Stadium locks its gates for good.
(COMMERCIAL BREAK)
HARRIS: Time to party like it's 1999. Kyra, you know what that's about. A little Prince for you. Oh, that was the last time the U.S. Golfers took the Ryder Cup from the European team. Hey, now, but the champagne was flowing America's way once again Sunday in Louisville. Six rookies lead the way for the 12 man U.S. team. Paul Azinger right there in the middle in the cap. What a job he did. And they won without Tiger Woods, who is resting his knee, watching on television with the rest of us.
KYRA PHILLIPS, CNN ANCHOR: It's like playing golf with you.
HARRIS: Yes.
PHILLIPS: The champagne.
HARRIS: All right. Is that what it is?
PHILLIPS: Not the pars.
HARRIS: And the end of an era. My Orioles did their part last night. New York say good-bye to Yankees Stadium. Last night was the final game of the old ballpark. The Bronx Bombers, of course, beat my Orioles. Lying down there the O's did, seven to three. The game attended by former Yankees greats like Whitey Ford, Yogi Berra and even Yogi admits it's next year. The season opens in a brand new diamond across the street.
And did you stay up late to watch the Emmy's last night? If you had to be to work early, like we do around here, you missed quite a show it seems. But Our Kareen Wynter was there and has the highlights for us.
(BEGIN VIDEOTAPE)
KAREEN WYNTER, CNN 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, EMMY WINNER: And it's just an incredible time. It's an incredible honor to bestow on our show. And I just can't say enough about it.
WYNTER: Basic cable scored other big drama wins. Glenn Close won lead actress for FX's "Damages." And Bryan Cranston was, the surprise, lead actor winner for AMC's "Breaking Bad."
BRYAN CRANSTON, EMMY WINNER: This is such a wonderful icing to a great cake.
WYNTER: The address for comedy this year was "30 Rock," outstanding comedy series and writing trophies for Tina Fey, and lead actor Alec Baldwin's first Emmy in seven tries.
ALEC BALDWIN, EMMY WINNER: To tell you the truth, I would have bet money Carell was going to win. I mean I totally thought Carell would win. So when I won, I was very shocked and very happy.
WYNTER: In the supporting comedy category, Jean Smart won for "Samantha Who," while Jeremy Piven earned his third Emmy in a row for playing Ari Gold, the fast talking agent of "Entourage."
This is the first time the primetime Emmy Awards have been held at the new Nokia Theater in downtown Los Angeles. In all, 30 awards were handed out on a stage that was shared by five co-hosts.
One of those hosts, "Survivor's" Jeff Probst, became the first ever recipient of a reality show host award.
JEFF PROBST, EMMY WINNER: 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 an 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 mini series, lead actress for Laura Linney and lead actor for Paul Giamatti, who played the title role.
PAUL GIAMATTI, EMMY WINNER: I'm living proof, kids at home watching, that anybody can play the president.
WYNTER: Kareen Wynter, CNN, Hollywood.
(END VIDEOTAPE)
HARRIS: So, Kyra, what did I miss last night? There was something else I . . .
PHILLIPS: Oh, did you miss something.
HARRIS: What did I miss?
PHILLIPS: Scotty (ph), let's roll it.
HARRIS: That's the "Love Boat" theme?
PHILLIPS: All right. This is what I think it was. It was Josh Groban, AKA Robert Goulet and Wayne Newton after a few Jack and Coke. That's what that was.
HARRIS: Every lounge singer . . .
PHILLIPS: ... after a few Jack and Cokes. That's what that was.
HARRIS: So ultimately, a lot of folks decided last night -- because he's really good, right?
PHILLIPS: He's amazing.
HARRIS: So a lot of lounge singers decided to give up their careers. Right? Is that what -- "This is it"? End of...
PHILLIPS: This is why you have a mute button.
HARRIS: That's why you have a mute -- but you don't even go near that remote right now. Don't you go near it. CNN NEWSROOM continues right now with this lady, Kyra Phillips.
Take it away, Kyra.
