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Obama to Name Hillary Clinton as His Secretary of State; Dow Opens at Record Lows; Congress' Conditional Bailout for Automakers

Aired November 21, 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: Two second drop of 10 percent. Traders look up today. What may turn the tide.
And picking a secretary of state. Who cleared the way for a possible invite to Hillary Clinton?

It is Friday, November 21st. I'm Heidi Collins. You are in the CNN NEWSROOM.

Thirty minutes before the opening bell on Wall Street. Will your money end the week on a positive note? The Dow starting at on its lowest level in more than five years. That after losing 400 points for the second straight day.

And this morning, President Bush feels the pain of the unemployed. He just approved the extension of benefits to jobless Americans.

CNN's money team is breaking it all down for you. We want to begin with Christine Romans is in New York.

Christine, good morning.

CHRISTINE ROMANS, CNN CORRESPONDENT: Good morning there, Heidi. Well, you're right. The president signing that and that means that folks will have unemployment benefits for longer, 26 weeks is what you usually get, and you get -- depending on where you are, about half of your pay for 26 weeks.

This would extend it another seven weeks for most people and then -- or another 13 weeks, rather, for most people and then even more if you live in one of these places where unemployment is 6 percent or higher. So that helps, at least on the margins.

We know there are going to be a lot more people who are going to be losing their jobs over the next -- few months and this certainly is something that will help those folks. We know that the job market is deteriorating and we know that more and more people are expecting a prolonged economic slump.

The chief economists over at Goldman Sachs today saying that they've revised their outlook 5 percent decline in GDP. They're looking for in the fourth quarter, and then a 9 percent unemployment rate by the -- in the next year. That's a lot of people out of work and that's going to be something that we'll be grappling with throughout the next year. Yesterday, you saw a big decline in stocks. The day before you did as well. It's just these kinds of worries that are -- hurting the stock market. The bank stocks really getting hammered. Asian stocks, overnight, though, rallying, turning around.

Asian stocks are perking up after a couple of brutal days. So those Asian stock markets are looking forward to today, hoping that there'll be some kind of a bounce and indeed our stock futures are pointing to a bounce here.

There's a lot of talk about Citigroup and what will happen with that company. Since it got or agreed to take federal money, the $25 billion of taxpayer money, the stock is down like 70 percent or something.

COLLINS: Wow.

ROMANS: I mean it's just been really tough. So we'll wait to see if there's anything that happens with Citi today, if they say anything about their prospects going forward and any of their plans to try to stop the bleeding there.

But I just think it's important for people to know that it's an incredibly serious situation in the financial sector, in the financial system, and that's what you're seeing reflected in this weakness in the stock market.

It's just an unprecedented kind of time here and a lot of folks have been asking a lot of experts and policy makers on what we can expect going -- how long can this go on, Heidi?

COLLINS: Yes.

ROMANS: And they say, well into next year. It's going to take leadership, new leadership from this new president. It's going to take a strong economic team. It's going to take a lot of money and stimulus and other things. And then hopefully confidence will come back. But until the confidence comes back, this is the new normal.

COLLINS: Yes, absolutely. Everybody's very anxious and waiting for that announcement about treasury secretary, a new one, indeed, from President-elect Obama as well.

CNN's Christine Romans, sure do appreciate that. Thank you.

The big three bailout. Congress tells automakers, show us your rescue plan, we'll show you the money. And the clock is ticking.

CNN's Kate Bolduan is on this story from Capitol Hill this morning.

Good morning to you there, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Heidi. Well, I guess a week of hearings and debate and urging cries from help from automakers did little to persuade lawmakers to give them an emergency loan.

We hear now that the bailout for the auto industry is back in the big three's hands. Democratic leaders coming out yesterday to say there will be no emergency loan coming your way until you give us some detailed, a very detailed plan of how you're going to use the money by December 2nd.

Senate majority leader Harry Reid yesterday saying the proposals that were on the table, none of them had enough support to pass. And that's why they are where they are today. Listen here.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D), MAJORITY LEADER: We do not have the votes. What happened here in Washington this week has not been good for the auto industry. I know it wasn't planned, but these guys flying in their big corporate jets doesn't send a good message to people in Searchlight, Nevada or Las Vegas or Reno, any place in this country.

We want them to get their act together. We want them to come up with something. We are here to help. We are not against the auto industry. We want to help those people keep those jobs.

(END VIDEO CLIP)

BOLDUAN: Democratic leaders keenly aware that they risk being blamed if they would leave for recess, for the Thanksgiving recess, without doing something. And here is the something.

Lawmakers are now saying, present us with a business plan, we will hold hearings, consider it, and if you prove that you will put the emergency billions, these billion dollar -- billions of dollars in loans, put it to good use and you -- and the auto workers as well as the taxpayers are well served, then we'll consider it. So now we're pushing it off until December. Heidi?

COLLINS: Yes. Obviously not a done deal then.

All right. Kate Bolduan on Capitol Hill this morning. Thank you, Kate.

BOLDUAN: Of course.

COLLINS: Attorney General Michael Mukasey is said to be conscious and alert this morning at George Washington University Hospital. As you well know by now, he collapsed last night while giving a speech.

And our Jeanne Meserve is outside the hospital for us this morning.

So, Jeanne, boy, really upsetting video that we've been seeing of this speech, all are wondering how the attorney general's doing this morning now.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, we wish we knew. We have not gotten an update yet this morning and we do not have a diagnosis. However a justice official did tell CNN last night there was no reason to believe that the attorney general had had a stroke.

He was speaking last night to the Federalist Society, that's a legal group at a hotel in Washington, D.C., when he started having trouble with his words. It was obvious to everyone in the room that he sort of tipped forward, hit the podium, and then fell to the floor.

It was shocking to the audience. Here's how one eyewitness described what he saw.

(BEGIN VIDEO CLIP)

AARON SILLETO, EYEWITNESS: He was giving a very impassioned speech. He was very well into it. It seemed like he was kind of winding down, like it was near the end of his speech, near the end of his remarks. He -- he started, kind of, stuttering and repeating himself a couple of times and kind of lurched forward and hit the rostrum. And before he could fall to the ground, someone came to his aid.

(END VIDEO CLIP)

MESERVE: He was then taken here to George Washington University Hospital, where he was kept overnight as a precaution. Justice Department officials said that he was conscious last night, that he was talking, joking, in fact. They described him as feisty.

This morning, he received a phone call, Dana Perino, the spokeswoman for the White House, said, just before 7:00 a.m., President Bush spoke to Attorney General Mukasey. The attorney general sounded well and is getting excellent care.

One side note, Heidi. Last night when the fire department responded to the call where Mr. Mukasey had fallen, they found some other people in the audience who appeared to be having some health issues, feeling faint. So they brought in a hazardous materials team to do some environmental testing, to see if something was wrong.

That came up negative. Apparently, those people in the audience, simply reacted emotionally...

COLLINS: Yes.

MESERVE: ... to what they saw taking place on the stage.

Heidi, back to you.

COLLINS: Wow. You know, that's pretty understandable. All of us, when we've been looking at that video, and really feel for him.

Jeanne, any idea about sort of the background, a little bit more background on Mukasey's overall health?

MESERVE: He's 67 years old, and as we understand it, he's in generally good health and he's known to work out regularly. So this is certainly not something that would have been expected. Heidi?

COLLINS: All right. Great reporting. Jeanne Meserve from Washington this morning.

And our chief medical correspondent, Dr. Sanjay Gupta, has had a look at the videotape as well of the attorney general's speech. The moments just before and after he collapsed seem significant, of course.

So, Sanjay, obviously, you are a neurosurgeon. And when you look at that tape -- I don't want you to speculate, of course...

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Sure.

COLLINS: ... because I know you're not officially on the case, but when you look at it, what do you notice? What do you see?

GUPTA: Well, whatever happened seemed to happen pretty suddenly. And I think that's important because when something happens suddenly, it often indicates that there's some issue with the blood vessels, blood flowing, blood suddenly stops, it causes these sorts of symptoms.

I watched it clearly and I think we've shown the tape clearly, but if we haven't what happens is that he starts to have some difficulties finding words. He's trying to find a word, you can tell that he's not able to find it clearly, then he starts to slur his words a bit, and then the right side of his face, the right side of his body seems to droop a bit and he collapses.

These are all clues, the speech center is being affected, the left side of the brain typically where those are located, that also controls the motor strength on the right side of the body, which makes you droop on the right side, and simply not having enough blood flow to the brain overall makes someone pass out.

You know you're looking at the brain there. Could it have been a small bleed within the brain? Could it have been a clot within one of those blood vessels in the brain?

COLLINS: Right.

GUPTA: These are all possibilities. But I will tell you that, as you pointed out, the fact that he is awake, conversant, his vital signs are back to normal.

COLLINS: Yes.

GUPTA: Obviously, a very good sign and indicating whatever it was, was temporary, at least for the time being.

COLLINS: OK. OK. Which is a really good point because when we think about stroke and think about the clot that goes to the brain and you're having a stroke, that is not temporary. I mean, it takes a few days to recover from that. GUPTA: That's right. And you know, it's interesting, because you heard Jeanne Meserve just say that his doctor saying that this was not a stroke.

The definition of stroke is some sort of neurological problem that lasts. So it lasts longer than a day. It hasn't even been a day since this happened yet, so you wouldn't be able to truly define a stroke.

But you can something known -- people call it a mini stroke or a TIA, which comes and goes. Maybe a small interruption of the blood flow to the brain. It can cause some of the symptoms as you see on the screen there, which is good for people who worry about this at home, sudden weakness, sudden slurriness of speech, loss of vision, loss of balance, which is all what he had.

COLLINS: Yes.

GUPTA: The key there is that you've got to follow up. You've got to make sure if that TIA was something that didn't happen that it doesn't turn into a stroke later on.

COLLINS: Yes, and they're saying, you know, he does look to be a very healthy guy. He works out often. Surprising that this would happen? I mean we often have no idea what's going on with our body sometimes.

GUPTA: Right. It's a great question. You know, we all develop -- start to develop plaque within our blood vessels at a surprisingly young age, in our 20s and 30s even. So you develop some plaque in the blood vessels, they go to the neck, you develop some blood -- some plaque in the blood vessels around your heart.

So it's not entirely surprising given his age. But you know I'd always want to check his blood to make sure his blood sugar wasn't too low, check his blood pressure to make sure he's not having problems with his heart. There are still lots of different things that this could potentially be.

COLLINS: Yes. Strangely, a reaction to from the people in the room, and having to call in the hazmat, which was, you know, clear as we heard from Jeanne Meserve. Not an issue there. But...

GUPTA: Well, you and I watched the video this morning. We both were -- I mean it's tough to look at.

COLLINS: Very, very.

GUPTA: And I imagine if you were there in person, it would very tough.

COLLINS: Tough. Yes.

GUPTA: And you'd be emotionally affected by that for sure.

COLLINS: Yes. All right. Dr. Sanjay Gupta, appreciate your insight on this.

GUPTA: Thanks, Heidi.

COLLINS: And we'll be following the story, of course, here.

Meanwhile, Hillary Clinton's vetting process for secretary of state moves forward. What could be waiting for her if that post falls through?

(COMMERCIAL BREAK)

COLLINS: Will she or won't she? The question everybody seems to be asking about Hillary Clinton, possibly becoming the next secretary of state. We have new information about that big job offer on Barack Obama's Cabinet.

Let's go straight to Jessica Yellin now in Chicago.

So what is the new news, if you will? Because we've been hearing, you know, kind of -- a bit of a back and forth. We even heard the word souring, that the talks were souring a bit between the two camps.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Well, now the word, Heidi, is that things are on track. Multiple aides inside the Obama transition tell us that it is on track for Barack Obama to nominate Senator Clinton to be secretary of state some time after Thanksgiving.

That is a clear sign that they feel the vetting process has gone smoothly and there are -- the major obstacles have been overcome. This news comes, as you'll recall, after Senator Clinton's husband, former President Bill Clinton, made extraordinary concessions, agreeing that if his wife were to become secretary of state, for example, he would remove himself from the day-to-day runnings of his foundation and disclose some major donors.

So clearly he's paved the way for this to help make this happen. What we don't know is whether Senator Clinton is going to accept any offer when -- if it comes to her. That part of this equation is still the big unknown. But clearly the Obama team feels this is moving forward toward consummation -- Heidi?

COLLINS: And -- you have to wonder a little bit about why waiting, you know, beyond the holiday of Thanksgiving, and if that means that he is trying to focus more clearly on other Cabinet positions before he makes this decision on secretary of state.

YELLIN: Or the other possibility is -- correct, that he'd like to have his entire national security team in place as one, perhaps, when he announces it, or not all of them are Cabinet positions, but he might want to unveil them as a group.

He might want to unveil the entire Cabinet as a group or a large bunch of them. And since not every piece is in place, it's hard to make the other pieces finalized until you know the major players. COLLINS: Sure, and I think...

YELLIN: So it's clearly coming together.

COLLINS: Yes, I think everybody is wondering about treasury secretary, most importantly.

YELLIN: And there's a lot of talk that that is one of the issues he's been agonizing over the most. We continue to hear the same three names in circulation. Top contenders, the people that he's advised to look at are Larry Summers, a former deputy treasury and secretary treasury in the Clinton administration, Tim Geithner who's at the New York Fed, and then Paul Volcker, you know, a hero to many in the economic world.

Those three men still the top contenders from what we understand. We'll see when he pulls the trigger.

COLLINS: All right. Yes, everyone's waiting around, certainly, on that one.

CNN's Jessica Yellin, sure do appreciate that. Thanks, Jessica.

A blanket of snow on both coasts now. These pictures are out of New York and Oregon. Both states got blasted yesterday with several inches of snow and more is on the way for much of the northeast. That means it's time to bring in Reynolds Wolf who is standing by in, what, snow central? Is that what you call it?

REYNOLDS WOLF, CNN METEOROLOGIST: Yes, you know, see, I don't know if that's good or bad the way we set that up, because it sounds like we're just the voice of doom here when it comes to snow. I mean who wants to shovel that stuff?

COLLINS: You get a snow blower.

WOLF: Yes, I guess it's true. I guess it's true. But a lot of people are going to be using the elbow grease in places like Cleveland.

COLLINS: Yes.

WOLF: Take a look at this, Heidi.

(WEATHER REPORT)

COLLINS: Yes, it sounds pretty good especially as I look at you there in that turtleneck. It's what John Roberts is saying, in no tie, I'm talking about Reynolds Wolf and the turtle neck.

WOLF: It's the Steve McQueen look.

COLLINS: I like it. I like it.

WOLF: It's what we do.

COLLINS: All right.

WOLF: There you go.

COLLINS: Reynolds, we'll check back later. Thanks.

WOLF: You bet.

COLLINS: A huge company gets blackmailed, but it may be your medical records that are at risk now. You want to know the details coming up shortly.

(COMMERCIAL BREAK)

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(COMMERCIAL BREAK)

COLLINS: It is Friday. So time to recognize newsmakers that shaped the week. Today's choice, the nation's big three automakers. They went to Capitol Hill, asking Congress for $25 billion emergency loans. They left empty handed and in limbo. Their very survival is now in question.

Also in the news, a company that handles medical prescriptions for about one in every six Americans. And if you're among that group, be on guard. The company is being targeted by a shakedown and your personal information may now be at stake.

CNN's Brian Todd as the story.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice over): An attempted shakedown of a company that handles about 500 million drug prescriptions a year for some 50 million people, one out of every six Americans.

Express Scripts, third largest processor of pharmacy prescriptions in the U.S., says one or more extortionists are making an explicit threat if the company doesn't pay a certain amount of money.

STEVE LITTLEJOHN, EXPRESS SCRIPTS, INC.: This criminal has threatened to expose millions of patient records. And we're taking that very seriously. And we're doing everything we can to support our clients and our members in this situation.

TODD: An Express Scripts official tells us that the extortionist, as if to show they mean business, sent the company a letter with the personal information of 75 members -- names, dates of birth, Social Security numbers, in some cases, prescription information. Letters were then sent to some of Express Scripts clients. The St. Louis-based company handles prescriptions for entities like unions, employers, and health management companies.

Express Scripts won't reveal what the letter said, won't say how much money the perpetrators want, but says it has no intention of paying.

RAY DICKENSON, INTERNET SECURITY EXPERT, AUTHENTIUM: I applaud them for not paying the ransom and going public and getting this into the hands of law enforcement and informing their customers so each of their customers can do something about protecting any further damage from this breach.

TODD: Security experts say many companies do pay these ransoms.

Express Scripts tells CNN, it's not sure how much data's actually been stolen, but doesn't have evidence yet that any personal information's been publicly exposed or otherwise misused, aside from included in those letters.

Express Scripts says it's cooperating with the FBI in the case and conducting its own investigation. The FBI won't comment.

(On camera): A company official says they're not ruling out the possibility of an inside job and they won't say if they think this information was stolen electronically. But Internet security experts say it's a safe bet this material was hacked.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

COLLINS: The Bush administration calls them enemy combatants, but a judge appointed by the president said to set them free.

(COMMERCIAL BREAK)

COLLINS: Quickly, want to get to a briefing here on the condition of Attorney General Michael Mukasey. This is now coming to us from the Justice Department.

GINA TALAMONA, JUSTICE DEPARTMENT SPOKESWOMAN: The same guy who's in charge today was in charge yesterday and the day before.

UNIDENTIFIED REPORTER: Can you tell us about the call (INAUDIBLE)?

TALAMONA: There was a call that took place this morning.

UNIDENTIFIED REPORTER: How did it go?

TALAMONA: It went very well. It was a very positive discussion. As you imagine, he's ready to sprint to finish the race. So he's really ready to get back to the office.

UNIDENTIFIED REPORTER: Any idea how long these tests may take (INAUDIBLE) this morning?

TALAMONA: These tests are taking place right now. And when we have more information, we'll let you know. Thanks so much.

UNIDENTIFIED MALE: Thank you.

COLLINS: There you have a Justice Department spokeswoman, Gina Talamona, trying to give a bit of an update to the press that has gathered to learn more about Attorney General Michael Mukasey.

As you may know, we've been reporting here for a while now that the attorney general did collapse last night during a speech that he was giving to the Federalist Society dinner taking place at a hotel in the area.

So we have been trying to get an update and that is the first that we have heard, saying that some testing is going on right now and they will be giving the press more updates once they get the results of those tests back. Saying, again, that the attorney general is itching to get out of the hospital, as you might imagine.

The turmoil on Wall Street hit a new landmark yesterday when the Dow tumbled more than 400 points. And don't forget the Dow tumbled another 400 points the day before. When will the selling come to an end? That's where everybody wants to know.

Our Susan Lisovicz is at the New York Stock Exchange now with a look at what to expect today, which may, just may, be a little bit better today, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Heidi. And we're off. We're looking for a floor and the futures indicate we may see one at the open, this after a two-day drop not seen since the crash of 1987. All told, the U.S. stock market lost $1.3 trillion in value over the past two days.

The problem remains, though, about uncertainty, uncertainty...

SUSAN LISOVICZ, CNN CORRESPONDENT: This after a two-day drop not seen since the crash of 1987. All told, the U.S. stock market lost $1.3 trillion in value over the past two days.

The problem remains, though, about uncertainty and certainty about Detroit's big three. The $700 billion bailout, the hemorrhaging in the financial sector, and the overall economy.

Today, we're seeing a rebound in the first few seconds of trading, following a rally in Asian markets and talk that banking giant Citigroup, which has been under so much pressure, may put itself up for sale.

Citi stock lost a quarter of its value yesterday alone, plunging to a 15-year low. Right now Citi shares are up 13 percent, still trading just over $5. "The Wall Street Journal" says Citi's board is meeting today to discuss the company's options, which are said to include a partial or a complete sale.

Over at Washington Mutual, 1600 jobs are being cut in the San Francisco area. JPMorgan reportedly cutting up to 3,000. This morning, however, President Bush made a move to help out the unemployed. He signed a bill to extend jobless benefits for 7 to 13 weeks, depending on where you live.

And, Heidi, let's hear it for J.M. Smuker. The AP says the jam giant plans to add, add up to 200 jobs. Fannie Mae and Freddie -- that's right -- and Fannie Mae and Freddie Mac announced plan to keep people in their homes this holiday season.

COLLINS: Yes.

LISOVICZ: The mortgage lenders are suspending foreclosure sales for 16,000 people from Thanksgiving to January 9th.

And we have a rally, Heidi, on this final trading day of the week. Triple digit gains for the blue chips, up 108 points right now or 1 2/3 percent. The NASDAQ is up 2 percent.

And finally, gas prices. Yes, we've got good news here, Heidi.

COLLINS: Yes.

LISOVICZ: Gas prices dropped below two bucks. If you try to remember the last time that happened, it was 3 1/2 years ago. We just reported inflation. Consumers are paying the same as they were through most of the 1960s and '70s so let's put the Beach Boys on the turntable and have fun, fun, fun until Daddy takes the seabird away, Heidi.

COLLINS: You know, I like your attitude. I really do.

Susan Lisovicz with the good news from the New York Stock Exchange.

LISOVICZ: It's Friday.

COLLINS: Loving that plus sign right there. (INAUDIBLE)

LISOVICZ: We've earned it.

COLLINS: Yes, absolutely. All right, Susan, thank you. We'll check back later on.

The global economic crisis, that's a backdrop for this weekend's APEC Summit in Peru. President Bush left Lima just a short time ago.

CNN's White House correspondent, Elaine Quijano, is joining us now with more on this trip from the White House.

Good morning to you, Elaine.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Good morning to you, Heidi.

Well, you know, this is a summit that President Bush has attended many years in the past, but as you noted, this year it is happening against the backdrop of the global financial crisis.

Now the 21 nations of APEC, it should be noted, together make up almost half, almost half of the world's trade. This year's meeting is also coming on the heels of that international financial summit last weekend here in Washington.

That was when we saw the so-called G20 leaders. The leaders of the world's 20 developed and developing nations come together here in D.C. Now, in the end, they agreed to some broad principles to shape not only the response to the current financial crisis, but also their countries -- how their countries might enact future financial reforms and the president said in an interview yesterday that this APEC Summit will really be an opportunity for the APEC countries to either get behind that statement of principles, or if they have disagreements with that statement of principles, to express their views.

So the president, Heidi, now on his way to Lima, Peru. He returns to Washington on Sunday, Heidi.

COLLINS: Elaine, some people have criticized the president for not really paying enough attention to Latin America. That was certainly in the wake of September 11th. What does the administration say about that now?

QUIJANO: Well, it's interesting. The president was just -- was just asked about this during an interview yesterday. And he said, look, it's just not true. He said he can certainly understand why that criticism exists because, of course, in the wake of 9/11, there was a lot of attention focused on the Middle East.

But the president pointed out that he has traveled frequently to Central and South America. The president also noting that he has actively pushed for free trade agreements with Central and South American countries.

So the president is really going to Lima, obviously, understanding that that criticism exists, but also trying to demonstrate that he is, in fact, committed to the region. Heidi?

COLLINS: All right. CNN's Elaine Quijano from the White House this morning. Thank you, Elaine.

A new legal setback for the Bush administration on detainee policy. A judge appointed by the president has ordered the release of five men held at Guantanamo Bay.

The story now from CNN's Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice over): The government says they are enemy combatants, willing to take up arms against the United States. But a district court judge didn't buy it and ordered the men released.

ROBERT KIRSCH, DETAINEES' ATTORNEY: The first time that a federal judge has listened to the entire case that the government has and has rejected it so strongly.

ARENA: Government supporters argue evidence is hard to come by on a battle field and warned the ruling sets a dangerous precedent.

LEE CASEY, FMR. JUSTICE DEPT. OFFICIAL: We are likely going to see individuals who were picked up in Afghanistan, who are far more dangerous than these five, being set free.

ARENA: The government is expected to appeal. The men will remain at Guantanamo Bay as the legal fight continues.

The case is the first of hundreds to be heard after a Supreme Court ruling, allowing terror suspects to challenge their detention in U.S. courts.

STEPHEN OLESKEY, DETAINEES' ATTORNEY: This is a new day in the life of the infamous American institution, Guantanamo prison.

ARENA: The five Algerians have been at Gitmo since 2002. They were originally suspected of plotting to bomb the U.S. embassy in Bosnia. But the U.S. backed off those accusations and now alleges, based on information from a single source, that the men were on their way to Afghanistan to join al Qaeda.

CASEY: The judge simply concluded that that wasn't enough in this case.

ARENA: The decision adds to the controversy already swirling around Gitmo.

The U.S. continues to face global condemnation for holding most of the 250 men that are still there without charging them.

SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I have said repeatedly that I intend to close Guantanamo and I will follow through on that.

ARENA (on camera): But as they say, the devil is in the details. And this is one complicated mess.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

COLLINS: Look at this. Snow days across parts of the north. Here's the scene in Mt. Hood, Oregon. Gusty winds mixed with the snow make it pretty tough on drivers. But what's bad for drivers could be good for skiers.

Things are much worse in upstate New York. Some areas there could see as much as two feet of snow.

A lake-effect snow warning is in effect for western parts of the state. Snowplows are out in western Michigan as well. Areas along Lake Michigan, getting up to a foot of snow. Drivers there also being warned to take it easy.

Can't say that enough, Reynolds Wolf.

WOLF: No question about it. I mean, you know, this is really the time of year that when you're driving in that snow, you really have to be careful. But you happen to be safe from Michigan, you're used to this kind of stuff.

And I'll tell you, Heidi, the very first snowfall of the season in Michigan is always a beautiful thing. I can tell you that firsthand, I live there. But it's when the snow is falling, say in April, where not so much. Sometimes you just kind of get sick of it.

(WEATHER REPORT)

WOLF: That is a quick look at your forecast across the nation.

Heidi, let's send it back to you.

COLLINS: All right. Very good. Thank you, Reynolds.

WOLF: You bet.

COLLINS: He ran on a platform of drawing down combat troops from Iraq and now some anti-war critics fear Barack Obama will do an about face.

(COMMERCIAL BREAK)

COLLINS: As you may know, Attorney General Michael Mukasey actually collapsed last night while giving a speech to a number of people gathered at a hotel. This has been captured on videotape, just in case you have not seen it.

We did get, just a few moments ago, sort of an update from the Justice Department's spokeswoman, Gina Talamona.

I want to go ahead and play that entire update for you right here.

(BEGIN VIDEO CLIP)

TALAMONA: The attorney general had an uneventful night. He looked good. He's very alert. The doctors are describing him as very fit. All the tests have been reassuring. There's no indication that he suffered a struck or any heart-related incident.

It really appears to be a fainting spell. Long days, he's very active.

UNIDENTIFIED MALE: Yes, he was talking right now.

TALAMONA: It was a late-night speech. (INAUDIBLE) So there will be another round of tests this morning. He certainly wants to leave and get back to the office as soon as possible. In fact, he's more than ready. The deputy attorney general will be over here today at 10:00 to brief him...

(END VIDEO CLIP)

COLLINS: Unfortunately, that audio, a little bit difficult to hear. Pretty windy there in Washington. So we want to you bring in -- CNN's Jeanne Meserve who has been following this story on the attorney general to tell us a little bit more about what was said in the update.

Jeanne, everybody is really just wondering how Attorney General Mukasey is doing.

MESERVE: Well, every indication from the department spokeswoman is that he's doing just fine. She said that he is anxious to get home, that he's ready to get on with business and sprint to the finish line, referring to the end of the administration.

And as you heard in the sound bite, they say they found no indication that this was a stroke or heart related. That they believe it just was a fainting spell. That he was working long hours and under hot lights, but they are doing some more routine tests this morning, just to make sure what they're dealing with.

We're told that he spent an uneventful night, that he looks good, that he's very alert, that, in fact, the deputy attorney general is going to be over a little later this morning to brief him on some department matters.

And by the way, we're told that the power was never transferred from the attorney general to his deputy through this whole episode.

COLLINS: That's very interesting indeed. All right. So the news here, at least so far, I know the tests are not complete yet, coming from our Jeanne Meserve, but apparently Attorney General Michael Mukasey suffered a fainting spell last night during that speech.

Jeanne, sure do appreciate that. Thanks.

Two bombs ripped through Baghdad today. The first exploded near an Iraqi police checkpoint. Iraqi officials say three people were killed and more than a dozen were wounded.

A second bomb hit an Iraqi army foot patrol, wounding two soldiers and two civilians.

Ending the war in Iraq, that's been a consistent pledge of Barack Obama's, but some anti-war activists fear President-elect Obama may be becoming more hawkish on the issue.

Here now, CNN's Jim Acosta.

(BEGIN VIDEOTAPE) JIM ACOSTA, CNN CORRESPONDENT (voice over): Even though he's in transition, Barack Obama's promises are still up on his campaign Web site.

OBAMA: Now is the time for a responsible redeployment.

ACOSTA: Like his pledge to withdraw most major combat troops from Iraq during his first 16 months in office. Still, some anti-war groups fear the next president is gearing up to do an about-face on the issue.

Many war opponents take exception with the idea of a potential Obama Cabinet, featuring current Defense Secretary Robert Gates at the Pentagon or Hillary Clinton at the State Department.

Sounds hawkish to Kelly Daugherty, with Iraq Veterans Against the War. She has other suggestions for American's chief diplomat.

KELLY DOUGHERTY, IRAQ VETERAN AGAINST THE WAR: There are people like Bill Richardson from New Mexico, who has been a strong advocate for complete withdrawal from Iraq.

ACOSTA: Some on the left still haven't forgiven Clinton for her vote to authorize the Iraq war in 2002.

SEN. HILLARY CLINTON (D), NEW YORK: But I cast it with conviction, and perhaps my decision is influenced by my eight years of experience on the other end of Pennsylvania Avenue.

ACOSTA: Many of those same liberal activists point out it was Obama's outright opposition to the war that helped clinch those early primaries.

OBAMA: The fist thing we have to do is end this war. And the right person to end it is someone who had the judgment to oppose it from the beginning.

ACOSTA: But other Democrats say, hold on. Noting Senator Clinton has also called for an end to the war and Gates has pushed for more diplomacy in Iraq.

ROBERT GATES, DEFENSE SECRETARY: The challenges we face in Iraq, Afghanistan, and elsewhere are fundamentally political, economic, and cultural in nature, and are not going to be overcome by military means alone.

ACOSTA: Other Democratic-leaning Iraq veterans have confidence the president-elect will keep his word.

JON SOLTZ, VOTESVETS.ORG: In the end, when you're dealing with the situation with the commander in chief, you're dealing with the military structure. It's his way or the highway. What he says goes.

ACOSTA (on camera): Mr. Obama repeated in a recent interview what he has said throughout his campaign, that upon taking office, he will order military commanders to initiate a new war plan -- to start drawing down troops in Iraq and begin adding them in Afghanistan.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

COLLINS: President-elect Barack Obama's cell phone records breached. A Verizon wireless says the number of employees accessed Obama's personal account without authorization.

Obama's transition spokesman says no e-mails or voicemails were monitored and he says Obama no longer uses the phone. Verizon is launching an investigation to find out if the information was shared with other employees or with people outside the company.

The employees involved in the incident are on leave without pay and could be fired.

Something came to him while he was working and changed his live forever.

(BEGIN VIDEO CLIP)

R.J. RICHARD, STRUCK BY BULLET: It increased my faith. I hopefully am more humble, hopefully will love my wife more and quicker.

(END VIDEO CLIP)

COLLINS: This one guy hanging on to his cell phone, hit by a bullet while mowing his lawn. That thing saved his life.

(COMMERCIAL BREAK)

COLLINS: A New York teenager faces upgraded charges in the stabbing death of an immigrant from Ecuador. A grand jury had indicted Jeffrey Conroy for second-degree murder as a hate crime. He is one of seven teens accused in the November 8th assault.

Prosecutors say the suspects were looking for Latinos to attack but authorities say it was Conroy who plunged the knife into the victim's chest. If there's a conviction, the hate crime designation would add to any sentence imposed.

If you cut the grass, you know that dangerous objects cans fly up at you. Reporter Heath Allen of affiliate WDSU tells of one homeowner who got hit not by a stone but by a bullet.

(BEGIN VIDEOTAPE)

JEANIE BAZER, NEIGHBOR: A woodpecker -- like that.

UNIDENTIFIED MALE: Yes.

RICHARD: When this thing hit me, it hit with such force that I thought it popped up from the lawnmower or some kind of way.

HEATH ALLEN, WDSU REPORTER (voice over): As R.J. Richard cut grass something slammed into his chest, a large caliber bullet.

RICHARD: I'm very glad to tell the story, not be the story.

ALLEN: It was the ultimate cell phone wakeup call, that stray bullet hit him squarely in the Motorola, normally in his pocket but this day over his heart.

ALLEN: They said if your cell phone wouldn't have been there, or -- and it would have hit you straight-on you'd be totally dead because that's where my heart is.

MINDY RICHARD, HUSBAND STRUCK BY BULLET: R.J. said, well, I've been shot. And I said don't tease like that. That is not funny.

ALLEN: Wife Mindy drove up shortly after and it took awhile for the truth to sink in.

M. RICHARD: I just burst into tears. I could not believe it.

ALLEN: The close call on the eve of this holiday season has the Richards holding on to each other just a bit more tightly these days.

RICHARD: It increased my faith. I am hopefully more humble, hopefully will love my wife more, and quicker.

M. RICHARD: He is. Ever since Saturday, he's been doing so much more right. I can't get over it.

ALLEN: And what better time of year is there really for a miracle?

RICHARD: We got a lot to be thankful of this Thanksgiving especially.

(END VIDEOTAPE)

COLLINS: Just as a precaution a local sheriff's department is running the bullet through a system to see if the gun it came from has ever been used in a crime.

Lucky guy.

A lavish party spot for the rich and recession-proof, it's opening as economies around the world are struggling. See for yourself as we take you there.

(COMMERCIAL BREAK)

COLLINS: Celebrities split, one step close. A London judge today granted Madonna and husband Guy Ritchie a preliminary decree of divorce. The divorce goes final in six weeks' time unless either has a change of heart.

The pop star and the film director married eight years ago. The British newspapers report today Richie has agreed to take almost none of Madonna's $447 million fortune. Nice of him.

It's been just about 30 minutes or so now since the opening bell on Wall Street and look at that, we have a plus sign, positive territory for the Dow Jones Industrial Averages, just up double digits now but, obviously, better than the last couple of days, where things were down 400-some-odd points each day.

Helping laid off workers start a new chapter in their lives, Uncle Sam handing over $3.87 million to help with job training for DHL employees. Some 8,000 workers are expected to lose their jobs when DHL ends U.S. domestic deliveries.

(BEGIN VIDEO CLIP)

SEN. SHERROD BROWN (D), OHIO: Wilmington is on the map for them and they know that we need major assistance from the federal government for this disaster.

REP. MIKE TURNER (R), OHIO: This allows the community to begin planning the funds to begin to be allocated, people to begin to know what might be there as this initial downpayment begins.

(END VIDEO CLIP)

COLLINS: DHL is the largest employer in the city of Wilmington and five surrounding counties. The company plans to close its doors in Wilmington on January 30th.

Don't have any dollars to slip into the Salvation Army kettle this holiday season? No problem. At some locations you can now use your credit card. Just swipe your card at the red stand, punch in how much you want to donate, get a receipt and get on your way.

Consider it lifestyles of the rich and recession-proof. Sure, economies around the world are struggling, we've been talking about it for quite sometime, but you'd never know it at the grand opening party for a fancy new resort in Dubai.

CNN's Tim Lister takes it all in.

(BEGIN VIDEOTAPE)

TIM LISTER, CNN CORRESPONDENT (voice over): The numbers tell the story, a $20 million launch party for a $1.5 billion project, one of the most luxurious resorts the world has ever seen, featuring a breath-taking sound and lights show and a fireworks display seven times for extravagant than the opening ceremony for the Beijing Olympics.

100,000 specially designed fireworks, up in smoke illuminating 40 kilometers of coastline and an archipelago of reclaimed land, stretching into the Gulf. Quite a debut for Atlantis, the Palm, in Dubai, where the facilities and 1500 rooms mark the ultimate in opulence and with the top suites will set you back $35,000 a night. 65,000 fish swim in an aquarium of 11 million liters of water. It's the latest luxury destination developed by Sol Kerzner, whose the company owns resorts and casinos around the world, but he admits the party could have been better timed and says his one and only group of resorts is hurting.

SOL KERZNER, CEO, KERZNER INTERNATIONAL: One only the Royal Mirage here in Dubai is operating pretty well but it's under pressure. There's no question. I think it's certainly part of the global downturn and I think Dubai is one of the last places to begin to feel it.

LISTER: And the other numbers tell a different story. Just last week, Kerzner's company fired 800 staffers at the Bahamas Atlantis flagship, and put other developments around the world on hold.

Opening his new property, Kerzner is confident that in the long run the Atlantis in Dubai will be a great investment but right now the horizon isn't too bright.

Worldwide, hotel demand is falling, occupancy in Dubai in recent months has hovered around 50 percent. After years of heady growth fed by wild speculation, Dubai is feeling the pressure, too much property, a banking crisis, high debt loads.

Not the most auspicious time for Kerzner and his Dubai partners to throw such a lavish party but one night at least his guest can forget the world's larger troubles.

Tim Lister, CNN, Atlantis.

(END VIDEOTAPE)