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Debating the Bailout Bill; Wachovia Sold
Aired September 29, 2008 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: It is Monday, September 29th. And here are the headlines right now on CNN.
The House of Representatives debating the $700 billion financial bailout right now. A vote on the compromise bill could come next hour.
New shakeout in the banking world. The nation's fourth largest bank sold.
A ship carrying weapons hijacked off Africa. Today, the U.S. Military takes a guard dog role in the standoff.
Good morning, everyone. I'm Tony Harris. You're in the CNN NEWSROOM.
From Capitol Hill to the White House to Wall Street, the focus is on issue #1, the economy. And topping #1 is the $700 billion bailout bill. A vote in the House expected next hour. Even supporters say they're faced with doing something unpopular to keep something worse from happening. Opponents urging their fellow lawmakers to vote no.
(BEGIN VIDEO CLIP)
REP. BARNEY FRANK, (D) CHMN., FINANCIAL SVCS. CMTE.: If we defeat this bill today, it will be a very bad day for the financial sector of the American economy, and the people who will feel the pain are not the top bankers and the top corporate executives, but average Americans. They don't see it yet. And pain averted is not a basis on which you get a lot of gratitude, but that is what is coming.
(END VIDEO CLIP)
HARRIS: Plenty of opposition to the bill. We will get to some of that a little later. >
Lawmakers from both parties pushed for changes to the initial plan. The bill provides as much as $700 billion for the Treasury to buy toxic mortgage and other debt from financial institutions. Under the compromised plan, the money would be doled out in stages, with $250 billion available immediately. Curbs would be placed on executive compensation.
There is a provision for the government to take owner ship take stakes in participating companies to share in any future profits. And the bill would establish two boards to oversee the plan. Debates under way, right now on Capitol Hill, on again the $7000-billion financial rescue. Once again, we expect a vote in the House within the hour. Probably the noon hour. Kate Bolduan, live, from the Hill.
Kate, good to see you again. How would you describe the debate so far?
KATE BOLDUAN, CNN CAPITOL HILL CORRESPONDENT: I think it really clearly it paints a picture of what these members are dealing with. They're calling it a very tough vote. And they are also coming out very strongly against. You are seeing both sides of the story and the fact that what we've been seeing here the for the past 10 days, now, about what these members are struggling with, to try to get on board or decide their vote, either way.
As you mentioned, the debate on the floor continues. It is ongoing right now. You're looking at some live pictures right here. We are told that there remains many undecided members on both sides of the aisle, where they're going to vote. We've been hearing in the debate, so far, is some members coming out applauding this plan as a bipartisan plan, that is much improved from the Treasury's original proposal.
But on the flipside, we are also hearing from some members that it continues - it's not the right solution, it misses the mark and it still has taxpayers on the hook for too much. But Leadership on both sides of the aisle have come out very clearly to say they are supporting the plan. It is what they want to push forward and push through today.
Listen here to one of those leaders. Number three House Republican, Congressman Adam Putnam.
(BEGIN VIDEO CLIP)
REP. ADAM PUTNAM, (R) FLORIDA: This is a better bill. Better for the taxpayer. No golden parachutes for CEOs who drive their companies into the ground and walk away with millions. None of the special interests projects that concern so many people on our side. But most importantly, the evidence is overwhelming that we must act.
(END VIDEO CLIP)
BOLDUAN: Now the basis of this plan, this bill, remains the proposal brought over by Treasury Secretary Henry Paulson, but some notable changes that they are calling big compromises and big breakthroughs. The one we have been talking about, quite a lot, is this cap on executives compensation and those golden parachutes, so that top executives of the financial firms that benefit from this program, they're also not padding their pockets at the same time, so supporter say.
Another point is the insurance program that Treasury will set up. It allows them to not only buy up mortgages, but through the insurance program they'll be able to guarantee some of the mortgage assets with premiums paid by the financial industry. They say it will take some of the weight off taxpayers shoulders, Tony. But we are definitely watching this debate as it goes on.
HARRIS: Hey is it still scheduled for a vote in the noon Eastern hour?
BOLDUAN: That's what they're hoping for. It could push a little bit, because if it looks like things - like their not getting the votes they want.
HARRIS: Gotcha.
BOLDUAN: Or if people haven't actually come out and voted quite yet, they could allow the full time to go through. We'll be watching. We're hoping for noon.
HARRIS: Kate Baldwin for us on Capitol Hill. Kate, appreciate it. Thank you. President Bush pushing Congress to approve the financial rescue plan, but he concedes it won't cure all the economy's ills.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Even with the important steps we're taking to address the current crises, we will continue to face serious challenges. The impact of the credit crisis and the housing correction will continue to pressure our financial system and impact the growth of our economy for some time. I'm confident this rescue plan along with other measures taken by the Treasury Department, and the Federal Reserve, will begin to restore strength and stability to America's financial system and overall economy.
(END VIDEO CLIP)
HARRIS: The president says he expects the cost of the bill to be much less than $700 billion. He expects much, if not all of the money to be paid back over time.
Investors overseas giving the bailout plan the cold shoulder. World markets, generally down across the board today. Stocks in Hong Kong and London tumbling 4 percent. Investors drove down prices in Tokyo more than 1 percent. So who are the winners and losers in this massive bailout bill? Stephanie Elam, of our CNN Money team, live from New York to talk about that stuff.
Stephanie, good to see you. I think part of the answer to that question is -- it depends. It depends largely, doesn't it, Stephanie, on the pricing of the assets?
STEPHANIE ELAM, CNN MONEY.COM: A lot of it has to do with pricing, Tony. And a lot of it has to do how everything comes through. How it all finally shakes out.
But I think when you take a look at something like this, it's nothing that anyone wanted to deal with. So it is not exactly a huge win situation for anyone. Let's take a look at the people who will be feeling less pain.
Starting off with, obviously, the banks, the credit unions, the pensions. Obviously the idea behind this is to get things moving again. A add some grease back into those wheels. And if they can start lending to each other, then hopefully that will move things along again and we'll start seeing the economy tick up.
Obviously you heard Kate just talking about taxpayers there. Obviously, a huge concern for a lot of the legislators; wanting to know that they are not going to be alone taking it on the chin, and the way we are seeing this laid out right now it does not look like that's the way it is. They're hoping. President Bush hoping that they will actually recoup money on this as things go forward. Keeping faith in the overall U.S. financial system and the stock market, overall, making money back.
Obviously, homeowners, another one here. The Treasury would work with loan officers to stem foreclosures. We don't know exactly how that would work out. The idea being if we could get the foreclosures down then hopefully that would get the market liquid again. So that's another issue.
The other thing I want to talk about, though, is just in general the $700-billion bailout and what this actually means. For one thing, the government can actually buy stake in these rescued firms. That mean that taxpayers would have a stake in these companies that are being rescued. And if the firm fails the government will be the first to recover some of those assets. And it extends credit to the small businesses as well.
And as you heard, so much of the talk there, Tony. They are saying that - and for these companies that come to them, saying, please, we would like to be a part of this program. Those executives will be held accountable. Their pay and their benefits will be limited at that point as well.
HARRIS: So I've got one of these mortgage backed securities, right here in my hand. Can you see it, here, Stephanie? Right there in my hand is one of these toxic mortgage-backed . securities.
(LAUGHTER)
ELAM: Right.
HARRIS: In that mix there I have some great mortgages and I have some bad mortgages. Who ferrets out the good from the bad, and who sets the pricing is that all Treasury?
ELAM: That's what the Treasury Department is going to take a look at.
HARRIS: OK.
ELAM: The idea being there though, that they will have executives. They'll have people that they appoint. These are people who will be pundits, come in and look at this and figure out the best way to go forward with that.
HARRIS: All right, Stephanie Elam, in New York for us. Stephanie, appreciate it. Thank you. ELAM: Sure.
HARRIS: We always want to know what you're thinking about the big stories of the day. Let us know any time at I-Report.com. This I- Reporters says the bailout money should bypass Wall Street's needy and go directly to homeowners.
(BEGIN VIDEO CLIP)
CHRISTOPHER SCHROEDER, I-REPORTER: How about we take that money and pay off their mortgages. Will that not help the economy? I know it sure as heck would help me. Not only would all the shifty loans be paid off. And the banks would still receive their money. But the average person like myself, who is struggling to make ends meet, would not only be elated, but we most likely would pump more money into our economy, which is consumer-driven.
(END VIDEO CLIP)
HARRIS: OK. Here's another I-Report. This one is a musical lament.
(BEGIN VIDEO CLIP)
SINGER: Another billion-dollar bailout for the companies that bleed us dry, $700-billion bailout makes a bunch of people wonder why these companies ...
(END VIDEO CLIP)
HARRIS: All right, that diddy from Adam Anderson, a self- described good old country boy from Tennessee. That's good.
The wreckage in the financial industry continues to pile up today. Another banking giant becomes a casualty of the mortgage crisis. Susan Lisovicz at the New York Stock Exchange with details on Wachovia. I'm trying to find my Wachovia card right now. I've got it right here. Here's my Wachovia card.
SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: It's still good, Tony.
HARRIS: If you look close that's not my name. It's really not.
LISOVICZ: Don't worry, Tony. It's still good.
HARRIS: I shouldn't worry?
LISOVICZ: Yes, well, I don't know. Maybe it would be altered in name, but your assets are safe, Tony.
Citigroup is buying Wachovia banking operations for more than $2 billion in stocks. Treasury Secretary Hank Paulson says the sale is necessary to avoid more painful economic fallout. As part of the deal, Citi will take over Wachovia's $300 billion loan portfolio, as well as absorb more than $40 billion of losses on those loans. The FDIC will be on the hook for anything beyond that.
Wachovia's big mistake was buying a giant California mortgage lender back in 2006. Just before the collapse of the mortgage market. Timing can be everything.
HARRIS: Isn't that the truth? OK, so I've got my card. I've got my accounts in Wachovia. What happens now?
LISOVICZ: Nothing.
HARRIS: Nothing?
LISOVICZ: Continue to do business. Regulators stress this is not a bank failure and that Wachovia accounts, including yours, Tony, are safe. Customers should not experience any interruption in service and deposits are protected. The FDIC guarantees individual accounts up to $100,000 and retirement accounts of up to $250,000 . I'm assuming that you are close to that, Tony, but not above that. The FDIC says during its history not a single penny of insured money was lost.
And, you know, Tony, I'm getting tired of saying that. We said that an awful lot; about what the FDIC insures and that no money is lost.
HARRIS: That's right.
LISOVICZ: We've been through this before. As for shareholders, well, they're not so lucky. Wachovia shares plunged to less than a dollar, and pre-market trading, and yet to open for the day. Overall, well, we have a big selloff for stocks. The Dow industrials right now off the lows for the session, down 242 points, or 2 percent. The Nasdaq is down nearly 4 percent. So, yes, you could say that investors not exactly calmed by word of this proposal. Not a lot of clarity and there's just a lot happening.
HARRIS: And you're watching it for us.
LISOVICZ: You know, one money manager told me, this morning, you know, it's all about confidence.
HARRIS: That's right.
LISOVICZ: The only thing that really restores confidence is time.
HARRIS: There you go.
LISOVICZ: It can be painful.
HARRIS: Yes, see you a little later in the hour. Thanks, Susan.
Whenever you're away from your television set point your browser on your computer there, or your hand held mobile gadget, to CNNnmoney.com. Breaking news on the economic crisis, and follow Wall Street stocks throughout the day.
Chocolate lovers beware, some candy is coming off the shelves.
(COMMERCIAL BREAK)
HARRIS: A standoff at sea: U.S. Navy ships are keeping watch on a pirated freighter off the east coast of Africa today. Somali pirates seized the ship Thursday. The Ukrainian boat is carrying 33 Soviet era tanks and other weapons. The Navy says the arms were bound for Sudan, which faces a U.N. arms embargo. The Americans say they're not involved in negotiations. The pirates want $20 million ransom. CNN's David McKenzie is watching this high-seas drama play out today. He joins us from Nairobi, Kenya.
David, look, what's the status of the vessel now? And what's happening with negotiations?
DAVID MCKENZIE, CNN INT'L. CORRESPONDENT: That's right, Tony. It's an extraordinary story, really. Off the coast of Somalia this Ukrainian ship bound for Kenya or Sudan. That's actually disputed, where those arms were actually going.
What we do know, is that ship is right off the coast of Somalia. And it is surrounded by a blockade of U.S. warships. At least one destroyer is there. I spoke to a Navy spokesman and he said there are other vessels in that area, essentially monitoring the vessel, with its dangerous arms on board, making sure that none of those arms, including tanks and rocket-propelled grenades, AK-47s, and tons of munitions -- making sure none of that can get onto the Somalia coast, or into Somalia, where there is, as you know, a long-standing conflict. Those arms could help fuel crime, could even help fuel terror. Some experts have told me. It's a difficult and dangerous situation. Now you throw into the mix that Russians frigate, which is on its way. This is taking, really, an international dimension, Tony.
HARRIS: All right, so, David, what is Ukraine doing selling arms to, the last word I received on this was to Sudan which, as you know, faces a U.N. arms embargo?
MCKENZIE: That's right. The there is a U.N. arms embargo against Sudan. Especially over the crisis in Darfur. Ukraine has given recent statements. They have said they have absolutely no comment. They're keeping very tight lipped about that. Earlier they said that these weapons are going to Kenya, rather than to the Sudan. Very angry Kenyan government spokesman told me late last night, that under no circumstances are these arms going to Sudan. They were bound for Kenya. He said that there shouldn't be any ransom or negotiation with the pirates.
However, the U.S. Navy told me they are monitoring the situation and they are hoping for some kind of negotiated settlement. Tony, really what that would mean is some kind of negotiated ransom.
HARRIS: Yes, that is what it sounds like. All right, David McKenzie for us from Nairobi, Kenya. David, appreciate it, thank you.
A bloody day in Baghdad. Several bombings left 35 people dead and more than 100 injured yesterday; the bloodiest coming in a double bombing. A person wearing a suicide vest detonated his explosives after an explosion from a parked car attracted a crowd. The blast killed 20 and injured 72 more. U.S. commander in Baghdad says despite the attacks, violence in the capitol during the Islamic holy day of Ramadan is down sharply from last year.
Lebanese soldiers were targeted, at least four were killed, about two dozen wounded by a car bomb. Today, outside the northern city of Tripoli. Security officials say the car was detonated by remote control as the soldier's bus passed. The bomb was stuffed with ball bearings to maximize casualties.
Cadbury is recalling 11 candies made in China. The company says preliminary tests showed the confections contain melamine. The chemical turned up earlier in powdered baby formula. The Chinese-made chocolates were sold in Hong Kong, Taiwan and Australia. No need for American chocoholics to worry. Cadbury chocolates in U.S. stores are made by Hershey's.
The big bailout, we have heard plenty about what it will do for Wall Street, but what's in it for you?
(COMMERCIAL BREAK)
HARRIS: Breakdown for you now. The federal government may soon be extending the financial firms a $700 billion lifeline. Personal Finance Editor Gerri Willis live from New York to talk about what it all means for you and me, consumers, here.
But before we get to that news, Gerri, big news this morning about Wachovia.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right.
HARRIS: How worried should consumers be?
WILLIS: Hi, there, Tony.
You know, look, if you have accounts at Wachovia this morning, guess what, the check will clear, your ATM card will work. All is well. Don't worry.
You know, the devil is in the details, though. And we're trying to figure out some of those details. I just got off the phone with a Citi spokesperson to ask, hey, what happens to the rate on my certificates of deposit? If I have other accounts that are interest bearing, will the interest rate change? He told me, look, the deal is not going to close for several months. There will be no changes in that interim, but you should know that in some of these cases those rates do change. But the big headline here is that your money is safe.
HARRIS: OK.
WILLIS: Those accounts will go on. Not to worry.
HARRIS: That's terrific. Hey, you know what, Gerri? I want - hey, Dan, can we show everyone the debate going on in the House on Capitol Hill over this huge -- anywhere in the neighborhood of $700 billion plan to shore up the financial sector, particularly the financial services sector of this economy right now.
I have to ask you, Gerri, is there something in this for borrowers? We borrow as consumers, we have a line of credit in many cases, we borrow for car loans, we borrow for school loans.
WILLIS: Yes.
HARRIS: I mean, is this good news for those of us who need credit?
WILLIS: Well, it is good news. Look, you talk about the credit crunch between banks. Banks aren't lending to each other. Guess what, banks weren't lending to consumers either. Getting an auto loan or a mortgage loan in the last couple of weeks, very difficult indeed.
But this bill, if it passes, if they do what they say they're going to do, it should actually help that situation out. It should improve loan availability. And guess what, here the devil in the details, again.
HARRIS: Yes?
WILLIS: Mortgage rates could come down a little bit as this happens. That's what we're being told by experts in the field. If you are out there, you're wanting to apply for a loan, the next few weeks, not today, not tomorrow, but weeks down the road, it should be easier.
HARRIS: What about my 401(k)?
WILLIS: Well, you know, your 401(k), a lot of people have been pulling their money out of their 401(k). That's what we've seen, right? Money running out of these mutual funds.
HARRIS: That's not necessarily a good idea.
WILLIS: No, because you're locking in those lows. You're saying, OK, I'm happy to have just an eighth of the value, or half of the value, or 80 percent instead of 100 percent. So it's not the thing to do. I have to tell you, though, this package if embraced by the markets -- and we're still trying to figure it out right now, you see the markets down almost 300points. That will help stabilize the market, put a floor under the market. As one financial adviser told me over the weekend, he said, you know, we've got the fire out in the theater, now. Now we have to figure out if the movie is any good. Now we go back to basics. Now stocks start trading on, you know, are they making money? Are they profitable? That should be ultimately a good thing for the market and your 401(k).
HARRIS: So far it has been a horror flick.
WILLIS: Yes.
HARRIS: Gerri, good to see you.
WILLIS: Good to see you, Tony.
HARRIS: Let's do it again tomorrow. Thanks, Gerri.
WILLIS: Absolutely.
HARRIS: It is issue number one in this presidential election. As it has been in years past, American leaders tackle the economy.
(COMMERCIAL BREAK)
HARRIS: Welcome back to the CNN NEWSROOM everyone. I'm Tony Harris.
And word just coming in involving the firings of nine U.S. attorneys in 2006. Attorney General Michael Mukasey announced the appointment today of a special prosecutor. That person will look into the conduct of Justice Department officials. The announcement coming within minutes of release of a report by the Justice Department's inspector general. That report calling the firings, quoting here now, "unprecedented and fundamentally flawed." It is also partially critical of former Attorney General Alberto Gonzales. The report says Gonzales did not pay enough attention to the actions of his chief of staff, Kyle Sampson, that staffer identified as the driving force in the firings.
Decision day and we are expecting a House vote next hour on the $700 billion financial rescue plan. Lawmakers are debating a bill right now. Opponents of the bailout, sounding the alarm, backers say doing nothing would be worse.
(BEGIN VIDEO CLIP)
REP. MEL WATT, (D) NORTH CAROLINA: I'm convinced that the odds -- the odds are bad enough that if we don't do something today we will regret it for a long, long time to come.
REP. JEB HENSARLING, (R) TEXAS: I fear that ultimately it may not work. I fear that it is too much bailout and not enough work out. I fear that taxpayers may end up inheriting the mother of all debts.
(END VIDEO CLIP)
HARRIS: Politics and the economy, two issues intertwined in the upcoming presidential race. And the economy has played a key role in elections throughout the last century.
(BEGIN VIDETAPE)
HARRIS (voice-over): 1932, 1980, 1992 -- pivotal elections all with a common theme: it's the economy, stupid. The economy.
But what should the government do about it?
When the 1929 stock market crash triggered what came to be known as the Great Depression, President Herbert Hoover's answer was to keep the federal government out of the nation's business. He put his faith in rugged individualism. But the problems grew -- unemployment, mortgage foreclosures, and financial institutions calling in loans and refusing credit. Only toward the end of his term did Hoover see a role for modest government intervention.
By then, Franklin Delano Roosevelt was promising Americans a new deal. He defeated Hoover in a landslide.
FRANKLIN DELANO ROOSEVELT, FORMER PRESIDENT OF THE UNITED STATES: Through this program of (INAUDIBLE) address ourselves to putting our own national health (INAUDIBLE). So first of all, let me assert my firm belief that the only thing we have to fear is fear itself.
HARRIS: A blitz of new programs followed. Government jobs, Social Security, new controls over banks, and debt relief for farmers and homeowners struggling to pay their mortgages. More than four decades later, Jimmy Carter would point to the spirit of those reforms when warning of a national crisis of confidence.
JIMMY CARTER, FORMER PRESIDENT OF THE UNITED STATES: The symptoms of this crisis of the American spirit are all around us. For the first time in the history of our country, a majority of our people believe that the next five years will be worse than the past five years.
HARRIS: Ronald Reagan turned that theme against Carter in a 1980 debate, pointing to slow progress in tackling the nation's energy crisis, high inflation and rising unemployment.
RONALD REAGAN, FORMER PRESIDENT OF THE UNITED STATES: -- who stand there in the polling place and make a decision. I think when you make that decision it might be well if you would ask yourself, are you better off than you were four years ago?
HARRIS: Twelve years later it was president George H.W. Bush, the man who had been Reagan's vice president, struggling with a stagnant economy. Bill Clinton saw an opening.
WILLIAM JEFFERSON CLINTON, FORMER PRESIDENT OF THE UNITED STATES: In 1992, the very future of the American dream is at stake. And unless we decide we want a very different kind of president, with a very different economic policy, unless we decide that we're all going to be more responsible citizens, responsible for our common problems, we're in for more trouble.
HARRIS: Clinton's prescription, a focus on debt reduction and job creation. By the end of his presidency, Clinton could point to record budget surpluses and the longest period of economic growth in U.S. history. Another part of the Clinton legacy, keeping on Alan Greenspan, the Federal Reserve Chairman, first appointed by President Reagan.
Greenspan stayed in that position through the first five years of the current George W. Bush administration. He presided over the Fed during a period of low interest rates and banking deregulation that helped fuel the housing boom. How much that may have contributed to the mortgage meltdown behind the nation's financial crisis is a debate that continues in the 2008 election.
(END VIDEOTAPE)
HARRIS: Boy, let's take you back to Capitol Hill now. The debate continues in the House over this enormous plan to shore up the nation's financial services business. The federal government would put up as much as $700 billion to rescue the nation's troubled financial system. We are watching that debate. A vote is expected. It could happen as early as next hour. We will keep an eye on that situation for you.
And whenever you're away from your television set, point the browser on your computer or your mobile -- your hand held gadget -- to CNNMoney.com. Breaking news on the economic crisis and follow Wall Street stocks throughout the day.
Hurricane Kyle is no more. It spared Maine and hit Nova Scotia over night as a weak Category 1. It's roar so much bigger than its bite. And that's good news. The biggest damage from Kyle -- some downed trees and power outages in Nova Scotia. About 40,000 customers got stuck in the dark. But for most of them the power has since been restored.
In Taiwan, have you seen these pictures? A mighty typhoon, the fourth and most powerful this year. Officials say wind gusts measured up to -- whoa -- 140 miles per hour. And just look at these pictures. As you saw here just a moment ago, grown adults literally smacked around like rag dolls. Officials say two people were killed.
And take a look at this video from the typhoon. From i-Reporter Neal Moore. It's hard to make it out because of all the rain. But that's a river in Taipei bursting its banks. The storm now headed toward eastern China.
Let's bring it back home. Let's check in with our Reynolds Wolf in our weather center.
Reynolds, good to see you, sir.
REYNOLDS WOLF, CNN METEOROLOGIST: Hey, Tony.
How many times have we seen that scene played out across --
HARRIS: Too many -- yes, you're right. You're right.
It seems that we're catching it more and more with our i- Reporters. Folks just getting banged around by the high winds of these storms.
WOLF: Absolutely. It's awful to see that happen over there.
We do have a new storm to talk about. We're talking about Laura. It is a sub-tropical storm, a cool-core system, not a warm-core system like many of the hurricanes we've had this year. Winds are currently at 60, gusting to 70 miles per hour. Tony, I've got great news about this system. I'm going to share it with you and the rest of America. The great news we have is that it's not expected to make landfall. It's expected to stay well to the north -- in the northern Atlantic. No threat to land. Certainly some great news as we go into Wednesday and Thursday. Mainly in a north and a northeast trajectory.
Meanwhile, the big story we have back at home is some scattered showers in parts of the northeast. But also as you head back to the Midwest, the western half of the Great Lakes, we do see some scattered showers, a few thunderstorms. Nothing severe as of yet. But I'm telling you, these pesky storms are going to cause a few problems in both the major airports in Chicago, back up to Milwaukee, even into parts of -- say -- St. Louis. Might have a few delays there.
Also into the afternoon hours -- you can't rule out the possibility of having some wet roadways to deal with. Certainly some issues along parts of I-70 and I-72.
And as we make way into later in the afternoon, we're going to see something else. Not rain coming down but things going up. Mainly temperatures in the southeast, like in Atlanta. High temperature today warming up into about 85 degrees, which is considerably warmer than what we've been dealing with here. We've been spoiled over the last couple of days with highs mainly in the 70s. Today is going to be different.
Dallas, (INAUDIBLE) out by Dealey Plaza 90 degrees the expected high. For Denver, 72. Phoenix with 102. And Portland with 88 degrees.
Tony, that's a look at the forecast.
HARRIS: Thank you, doctor.
WOLF: Let's toss it back to you, chief.
HARRIS: Appreciate it. See you next hour, sir.
WOLF: Good times.
HARRIS: Gruesome discovery in Maryland, just into CNN. Police find a 7-year-old girl wandering the streets of a neighborhood in the town of Lusby. She told officers she jumped from a second-story window to escape from a locked bedroom. The child's mother, 43-year- old Renee Bowman is in custody right now. Police say she confessed to beating the child with the hard heel of a shoe.
And there's more. And it's more disturbing. Police say they found human remains in Bowman's basement freezer. Officers say Bowman admitted the bodies were her two other daughters.
Actress Heather Locklear arrested in Southern California. This is her mug shot taken Saturday evening. Locklear was booked on suspicion of driving under the influence of prescription drugs. Her arrest came after a highway patrol officer saw her driving erratically. Locklear was later released. In June the actress sought treatment for anxiety and depression.
Remembering the man, the legend, the father. Your stories of Paul Newman.
(COMMERCIAL BREAK)
HARRIS: John McCain and Sarah Palin preparing for a noon rally in Columbus, Ohio. Live pictures there for you. We will monitor that event for you. We expect he'll focus on the economy, the bailout.
Our Ed Henry in Washington for us now.
Ed, good to see you. We've gone from a consensus that presidential politics should stay out of the bailout debate to John McCain being hailed as having been key in bringing House members together.
So my question is: Will McCain be portraying himself as the man who saved the plan on the stump today?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, we'll be watching very closely in 20 minutes to see exactly how he does play that. I know that conservatives here in Washington have suggested -- some Republican senators for example -- that John McCain has played a very constructive role in this debate. And by him coming back off the campaign trail late last week to Washington, in the estimation of these Republican senators, like Judd Gregg, who was a key negotiator, they say that John McCain really focused the nation's attention on this debate and got the thing going.
But in fact, a lot of Democratic negotiators say just the opposite. People like Chris Dodd, a senator from Connecticut, say, look, this thing was already on track before John McCain got into the middle of it. And the presidential politics actually slowed the thing down, Tony.
HARRIS: Well, Ed, any damage to the McCain camp after he suspended his campaign to workout the bailout situation?
HENRY: We haven't seen any just yet. It's obviously still early. But I think we're going to learn over a lot over the next 24 to 48 hours because even the McCain allies who were saying look, he really helped move this debate along, they may be speaking a little too soon. We've got votes coming up in the House and Senate. And nobody really knows how those votes are going to work out.
If this bailout falls, if it fails, then all of a sudden the people in the Republican Party saying John McCain really helped move this along -- what are they going to say then if this thing completely unravels? So I think it's too soon to tell how the politics played out, Tony.
HARRIS: Yes, but you know they'll have something to say.
Any concerns over Sarah Palin's first debate with Joe Biden on Thursday? HENRY: Oh there's a lot of concern on the Republican side after they saw, in particular, the Katie Couric interview on CBS News last week where Sarah Palin seemed to be struggling a little bit under some tough questions. And a lot of Republicans were alarmed by that. As you probably saw over the weekend, "Saturday Night Live" had a little fun with it. Not surprisingly, they've been doing some Sarah Palin segments before.
But in all seriousness, Republicans are saying to the McCain campaign privately, you should really step it up, get her ready for this first and only vice presidential debate on Thursday. And in fact, we've just learned in the last 24 hours that Sarah Palin's schedule has changed. She was supposed to be going to St. Louis early, later today, to get ready for the next few days for the debate. Instead, she's going to Arizona. They're basically putting together sort of a debate bootcamp at John McCain's retreat there in Arizona. It gives you a sense that the campaign is a little bit nervous, Tony.
HARRIS: All right. There he is -- Ed Henry for us.
Ed, great to see you as always.
HENRY: Good to see you.
HARRIS: Thank you, sir.
On the other side, Barack Obama is tuning up for an afternoon event in Denver. We will be checking on that event as well. During a rally in Detroit yesterday, Obama took shots at the White House over the bailout plan.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: This administration started off asking for a blank check to solve this problem. Joe Biden and I said absolutely not. I said it was unacceptable to expect the American people to hand this administration, of all administrations, a $700 billion check with no conditions, no oversight, when a lack of oversight in Washington and on Wall Street is exactly what got us into this situation in the first place.
(END VIDEO CLIP)
HARRIS: And just a reminder, the vice presidential debate is Thursday night, and we will have that for you live.
We'd like to know what you think. Are the vice presidential candidates helping or hurting their tickets? Send us an e-mail to cnnnewsroom@cnn.com. Get all the inside scoop on this presidential campaign by logging onto CNNPolitics.com.
Hollywood legend, graceful humanitarian -- many of you are sending us your memories of Paul Newman.
This one from Michelle Poole, a professional photographer. Her's are among the last pictures of Paul Newman before his health deteriorated. Poole's photos show Newman at Camp Cory near Seattle this summer. He was the opening of the latest Hole in the Wall camp, a camp for children with cancer. Newman founded the organization in the late '80s. Poole says she spent the entire day with Newman.
Friends say Paul Newman viewed his family and his charity work as far greater accomplishments than acting. One of Newman's five daughters agreed.
(BEGIN VIDEO CLIP)
LISSY NEWMAN, PAUL NEWMAN'S DAUGHTER: He was a beautiful person. And -- the whole experience has really been difficult but lovely in its own way.
He is, was, and always will be an incredible man. And -- you know, I'm just blessed to have been part of him.
(END VIDEO CLIP)
HARRIS: Here here.
Hollywood's classic leading men, Brando, Dean, and Newman. A half century on the big screen summed up now by the man himself.
(BEGIN VIDEOTAPE)
PAUL NEWMAN, ACTOR: I've done my best work, I guess, in the last 10 years. I wish I knew as much about acting then as I knew (sic) now.
I think I would have made some changes in "The Hustler." I would have made some changes in "Cool Hand Luke."
(BEGIN VIDEO CLIP)
NEWMAN AS LUKE, "COOL HAND LUKE": A lot of guys laying out a lot of rules and regulations.
(END VIDEO CLIP)
NEWMAN: I would have just done things differently.
(BEGIN VIDEO CLIP)
NEWMAN AS BUTCH CASSIDY, "BUTCH CASSIDY AND THE SUNDANCE KID": What happened to the old bank? It was beautiful.
UNIDENTIFIED MALE: People kept robbing it.
NEWMAN: It's a small price to pay for beauty.
(END VIDEO CLIP)
NEWMAN: No one should ever do a remake of "Butch Cassidy and the Sundance Kid." (BEGIN VIDEO CLIP)
NEWMAN AS EDDIE FELSON, "THE HUSTLER": Set them up the way they were before.
(END VIDEO CLIP)
NEWMAN: The only character that was worth re-examining again was Fast Eddie Felson.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Nobody can make that shot. And you know it. Not even a lucky lush.
(END VIDEO CLIP)
NEWMAN: It was a re-examination of a character 20 years later because at the end of "The Hustler," he had won, but he -- he was deprived of any further work as a pool hustler. So it was worthwhile to go back and find out how Fast Eddie kept being Fast Eddie and what he was Fast Eddie at.
(BEGIN VIDEO CLIP)
NEWMAN AS FAST EDDIE FELSON, "THE COLOR OF MONEY": Pool excellence is not about excellent pool, it's about becoming someone.
TOM CRUISE AS VINCENT LAURIA, "THE COLOR OF MONEY": Yes?
NEWMAN: Yes.
CRUISE: Like what?
NEWMAN: A student. You've got to be a student of human moves. See all the greats that I know of, to a man, were students of human moves.
CRUISE: Students of human moves?
NEWMAN: Yes. That's my area of excellence.
(END VIDEO CLIP)
NEWMAN: As I say, I wish I had known as much as I know now. I wouldn't have worked as hard.
(END VIDEOTAPE)
HARRIS: Paul Newman was married to actress Joanne Woodward, one of those happily ever after stories. They couple celebrated their 50th wedding anniversary this year.
(COMMERCIAL BREAK)
HARRIS: So we are watching Capitol Hill right now where a vote is expected next hour on the massive financial rescue plan package. Let's check in again with Kate Bolduan on the Hill.
And Kate, are we still on track for a noonish vote? Maybe 1:00 Eastern?
KATE BOLDUAN, CNN CORRESPONDENT: Noonish -- if you say noonish it will --
HARRIS: There you go. You cover the bases.
BOLDUAN: Exactly. We're it's hearing more towards 12:30. The debate is ongoing right now.
And what we're hearing is there remains, at this hour as they're leading into the vote, there remains many undecided members on both sides of the aisle. This is a really tough vote for people with $700 billion -- well the authority for $700 billion being the question. That's a tough pill for members to swallow. We've heard both sides of the aisle.
Opponents saying that this misses the mark. It puts taxpayers on the hook for too much. Even one congresswoman saying Wall Street should pay for Wall Street's mistakes.
But supporters, that includes leadership from both sides of the aisle, they say that this is a necessary bipartisan effort to avoid further financial crisis in the markets, and of course, as they've been talking about, the trickle down on Main Street as well. So we'll see how things play out.
HARRIS: Well, but Kate, are the votes there? At the end of the day, here in the next hour or so, are the votes going to be there? You may hold your nose, you may swallow hard, you may breath deeply, but are the votes there?
BOLDUAN: Whichever cliche we can come up with.
HARRIS: Yes.
BOLDUAN: No, but we do hear from members, from the leadership as well, they do think they have the votes. But as we always say, and we say it for a reason, you cannot call a vote until the final vote is cast because this is going to be a tough vote. And you can very much expect that there is some political arm twisting going on right now and there will be as well on the floor when this vote takes place because this is -- there are a lot of people on both sides of this issue who are very passionate.
HARRIS: Certainly got a little built in drama for the next hour.
All right. Kate Bolduan on Capitol Hill. She'll be there for us, guiding us through it all next hour, right here in the CNN NEWSROOM.
Want to take you to Columbus, Ohio, just give you a look at the scene here. John McCain, Sarah Palin, getting ready for an event there, a rally. The topic of course is going to be the economy. When that rally begins we will take you to Columbus, Ohio. Waiting in line for hours only to find out that the gas pump has just run dry. No, not a bad dream, folks, my reality.
(COMMERCIAL BREAK)
HARRIS: A little Jackson Brown for you this morning.
You know -- I keep hearing that retro is totally in, but not this. Now look at these pictures from the '70s. Long lines at the gas pump, right? A major shortage. it is absolutely infuriating. And if you live, look at those old cars, if you live in the southeast, it is exactly what you're dealing with right now. Cars stalled out -- maybe we can do a little dissolve here -- others running on fumes and drivers, like yours truly, about to blow a gasket.
So where, please tell me, is the gas? Our Rusty Dornin, live now in Atlanta.
Rusty, help me please.
RUSTY DORNIN, CNN CORRESPONDENT: Things are about to get very dicey here, Tony --
HARRIS: OK.
DORNIN: -- at the Marathon Gas Station near downtown Atlanta because their system's warning lights just began to beep. They only have about 500 gallons of gas left. They figure they can stay open for about another half hour to have gas. But there's a long line here of folks that are going to be very disappointed.
But one person who snuck in under here is Betty Carter.
Now Betty, you said you were pretty worried about getting gas.
BETTY CARTER, MOTORIST: Yes, I was very worried about getting in line because the gas that I had -- I didn't want to run out.
DORNIN: But you told me that you had a half a tank of gas.
B. CARTER: Yes, I had a half a tank of gas.
DORNIN: Now apparently, it's people like yourself that come in with a half a tank are part of the problem. Everybody's panicking.
B. CARTER: Well, no, not really. It's just trying to be smart because they have to sell the gas anyway. I know what they said the rules are, but first come, first serve. I happened to be in the area and seen the cars this morning. So I said when I'm on my way back home, I'll just get in line.
DORNIN: How frustrated would you have been if you had waited in line and there was no gas?
B. CARTER: Oh, I would have been very upset. DORNIN: Well, there are going to be very upset people here in probably just about a half hour, Tony. They received about 5,500 gallons -- that's about half of what they normally get. And apparently, that's what they're doing, the tankers are splitting their loads in half for the stations, trying to make it last longer. But it doesn't last long if you only give them half a --
HARRIS: Hey Rusty, don't you give my friend Betty a hard time. You see that Hummer back there. Get that thing out of there. Get that thing out of the doggone aisle there.
You know, I'm chasing gas tankers down the road, Rusty, trying to figure out where they're going.
DORNIN: You are not the only one. They call it stalking the gas trucks. And apparently you're not the only one.
Also, people are actually calling 911 --
HARRIS: That's crazy.
DORNIN: -- asking the 911 operators, where's the gas? And it's actually swamping Douglas County -- swamping the operators there because they don't know where to get the gas.
HARRIS: And can I tell you something -- I'm with Betty. A half tank is the new empty in my world.
Rusty Dornin for us in Atlanta.
Rusty, appreciate it. Thank you.
All right. Hello again, everyone. I'm Tony Harris. The headlines for this Monday, September 29th, begin on Capitol Hill.
