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President-Elect Obama names Daschle As Head of HHS; Creates new Office of Health Reform in White House; Senators Talk, and Talk Some More, About Auto Bailout Loans; Hill Watchers Still Hope For A Vote Today
Aired December 11, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
DON LEMON, CNN ANCHOR (voice over): A governor's scandal, a senator seat, a president-elect's headache. The fallout grows and the pressure mounts on Illinois's head of state. We look at the politics and the players.
Flying south for the winter? Well, guess what, winter is coming with you. Deep snow in the Deep South has some people going off the deep end.
UNIDENTIFIED FEMALE: My husband bought me a lot of beautiful jewelry and I miss this one so much.
LEMON: She wore it for decades; she thought she lost it forever, and now a special lady gets her special ring back, thanks to a jeweler who is more substance than shine.
The news starts now.
(END VIDEO CLIP)
LEMON: Hello, everyone. Thanks for joining us. I'm Don Lemon live here in the CNN World Headquarters in Atlanta.
Another day at the office for Rod Blagojevich, except -- except for a public call by the president-elect that he step down as Illinois governor. In a news conference that you may have seen here on CNN, Barack Obama said, Governor Rod Blagojevich can't effectively serve the people, having been arrest and accused of, among other things, trying to sell Obama's old Senate seat.
Obama said he is "absolutely certain," that is a quote, neither he nor his staff had any part in any deals to fill his Senate vacancy. Illinois' Attorney General Lisa Madigan is threatening to ask the state supreme court to oust Blagojevich if he doesn't quit, or get impeached.
All right. Well, three of the four questions Obama answered at his news conference were about the Blagojevich case, and that was after he said this.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: Let me be absolutely clear, I do not think that the governor, at this point, can effectively serve the people of Illinois. The legislature is going down to Springfield to make a determination as to how to resolve this issue. I think that they are going to come to the same conclusion. I hope that the governor, himself, comes to the conclusion that he can no longer effectively serve, and that he does resign.
(END VIDEO CLIP)
LEMON: Let's bring in now, our Elaine Quijano; she in Chicago right now.
OK, so he has this big announcement, and everyone is asking him about Blagojevich, Blagojevich, and he says I want to get this out. What about Blagojevich, Mr. President-Elect?
I would imagine that is how it went, Elaine?
ELAINE QUIJANO, CNN CORRESPONDENT: Well, you are pretty much right on that one, Don. The president-elect was really trying to put to rest any lingering questions about his team and the embattled Illinois Governor Rod Blagojevich, as you noted, is facing the federal corruption allegations, including trying to sell Obama's vacated Senate seat.
Now, to be absolutely clear here, the U.S. attorney in the case, Patrick Fitzgerald, has said there are absolutely no allegations against the president-elect contained in that federal complaint filed earlier this week. However, it is still not known what contacts members of Obama's team may have had with the governor, or the governor's office. Here is what president-elect had to say about that earlier today.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I was as appalled and disappointed as anybody by the revelations earlier this week. I have never spoken to the governor on this subject. I'm confident that no representatives of mine would have any part of any deals related to this seat. I think the materials released by the U.S. attorney reflect that fact. I have asked my team to gather the facts of any contacts with the governor's office, about this vacancy.
(END VIDEO CLIP)
QUIJANO: So more information perhaps coming in the days to come on that point, but the stated purpose of this news conference was to talk about health care reform, and on that front, the president-elect announced Tom Daschle, former Senate majority leader, as his pick not only for secretary of Health and Human Services, but also, he will be heading up a new office inside of the White House, an office to be created called the Office of Health Reform. Also announcing as well the deputy director of that office will be a woman by the name of Doctor Jeanne Lambrew.
And finally, Don, on the issue of U.S. automakers and help for them as lawmakers in Washington continue to try to come up with a solution. The president-elect weighed in on that matter, as well, saying he does back Congress' push for a short-term financial assistance to help the big three - Don.
LEMON: CNN's Elaine Quijano. Appreciate it, Elaine.
So who is, or was, in the running for Obama's old seat? An FBI affidavit drops some hints, but doesn't name names. Still the blanks are being filled in, some by sources, and some by the candidates, themselves. Take a look.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Good to see you.
LEMON (voice over): Mystery solved for candidate number five, Congressman Jesse Jackson, Jr., but Jackson is just one in an interesting cast of characters that make up the Obama senate seat saga. Let's count them down.
Candidate number four, deputy governor aid, suspected to be 33- year-old Bob Greenly who resigned Wednesday as the scandal broke. He was appointed to his present post by the governor. Although he would be a long shot for the Senate seat, a source tells CNN Governor Blagojevich is known for surprises, but Greenly is considered unlikely to be able to hold on to the critical seat for re-election.
Which brings us to candidate number three, possibly representative Jan Schakowsky, a long-time Blagojevich friend who is now calling for his resignation. A source tells CNN it is unlikely Schakowsky would be involved in a pay-to-play scandal, given she has run her entire career on a high ethics platform.
Candidate number two could be Lisa Madigan, popular in Illinois politics, is a current states attorney general; her father is the speaker of the Illinois House of Representatives. But Blagojevich likely sees her as a threat, since she has expressed interest in running for governor.
Candidate number one, most likely the president-elect's acknowledged favorite, and in many ways the most attractive candidate, Valerie Jarrett, and former Mayor Daly deputy chief of staff. As an African-American woman, she would bring diversity to the Senate, her fund-raising ability would almost ensure she would hold on to the seat in two years. However, on November 12th, she took herself out of the running and Mr. Obama has already named her senior White House adviser.
And candidate number six, the new mystery could be anyone of a number of wealthy Democrats in Illinois, where there are plenty of them.
(END VIDEOTAPE)
LEMON: OK. So while the governor stands firm, at least for now, his fellow movers and shakers in Illinois politics are keeping the distance or running for cover -- or at least pointing their fingers, or all of the above. Keeping track of all of them veteran Chicago reporter, Chuck Goudie of WLS TV.
Chuck, I know, if a politician is crooked, or if he's not doing the right thing, when he sees you coming, he runs the other way. Have you been reporting lately any investigations -- and I know you are famous for the investigations there in Chicago - have you uncovered anything new within the last couple of days as it relates to Rod Blagojevich?
CHUCK GOUDIE, REPORTER, WLS TV: Well, certainly there is a wealth of material in the documents that were filed by U.S. Attorney Pat Fitzgerald here. And everybody in town is still trying to figure out who these unnamed characters are.
Not just news reporters, obviously, but also the characters themselves are scratching their heads and wondering, what in the world did I say to Governor Rod Blagojevich in a conversation we had over lunch, or in his office, or as hit motorcade was passing by and he pulled over? They are wondering, oh, my lord, what did I say that might get me into trouble now? So that is what most people in town are looking at.
LEMON: I would think that most of the politicians in Illinois, especially Chicago, are they concerned that Rod Blagojevich may roll over on them for some reason, if they have done anything that may be slightly shady in the past, is there a big fear about that in the Chicago area?
GOUDIE: Well, there is certainly a big fear with anybody who has done any business with state government, and especially the Rod Blagojevich administration. The history of this state, and especially over the last six years or so is such that you have people who have had state contracts and who are wondering now, what did they say? How did they conduct their business and very concerned that Rod Blagojevich is certainly not an individual at this point, that they can trust to do anything, whether he decides to plead guilty or fight this thing, who he may take down along the way. And he make take no prisoners at all, and that is a real concern of people who have done business with the state.
LEMON: And that is what Patrick Fitzgerald is hoping for.
Hey, Chuck, think about this, because I want to play the sound bite for you from the Lieutenant Governor Patrick Quinn, about Rod Blagojevich stepping down and I wanted to know if you are hearing anything about it.
Let's listen to this, and then I'll talk to you.
(BEGIN VIDEO CLIP)
LT. GOV. PATRICK QUINN, (D), ILLINOIS: I am not the governor. I am the lieutenant governor. As the U.S. Attorney Patrick Fitzgerald said the other day, at the end of the day, Rod Blagojevich is the governor. Now I hope that Governor Blagojevich does what I know in his heart he knows he has to do, and that's to step aside. And at that time, I'll deal with that issue.
(END VIDEO CLIP)
LEMON: Rob Blagojevich is known for, let's just say he is a bit cocky, let's just be honest and very sure of himself. Do you see in this, Chuck, and you heard Pat Quinn there, do you think he will step down? What are you hearing?
GOUDIE: Blagojevich, right now, is in the middle of a hurricane. He is going about the business as if nothing has happened or changed. He went to the office yesterday. He is in the office today. Although that may be a little unusual, it was odd for the governor to go to the office two days in a row, most of the time he would work out of his house up on the north side of Chicago. But the fact is that the governor is in the middle of the storm and all of these people around him are talking about him and suggesting what he do.
I don't think he cares anything about what they are saying. He is certainly not taking the lead from Democratic officials; he hasn't listened to the President-Elect Obama, who has called for him to step aside. He will do whatever he wants to do, and what his legal team - that he is attempting to assemble -- thinks is best for his legal situation.
LEMON: Yes. Chuck Goudie, long-time Chicago reporter, investigative reporter who has covered politics for a long time.
Chuck, I could talk to you all afternoon, but unfortunately, we have some other news to get to.
GOUDIE: Don, good to see you.
LEMON: It's good to see you and hopefully I'll see you soon. I'll be in Chicago this evening. So I'll look you up, Chuck.
GOUDIE: All right.
LEMON: Thank you very much, sir.
LEMON: And you may think you have heard all about Governor Rod Blagojevich, well you haven't, by the way. But what about his new nemesis?
Ahead, we will learn a thing or two about Attorney Patrick Fitzgerald, from a lawyer who used to work with him. He holds no prisoners and pull no punches here.
This whole scandal is a very big, a very unwelcomed distraction for the incoming administration, especially, as it tries to tackle the economic crisis. One of the biggest issues today, the future of the proposed bailout loan for the Big Three U.S. automakers; it is running into all kinds of hurdles on Capitol Hill. That is where our Brianna Keilar is right now.
Good to see you, Brianna. Do we have any new information on that? Any movement?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yeah, we do have some movement. There is a lot of, as you know, Senate Republican opposition to this plan that came through the House yesterday, but new developments, signs that Republicans and Democrats here in the Senate are working, talking behind closed doors, about possibly finding some agreement, so that they can move forward possibly on a vote to come as soon as later today.
So this plan that came through the House includes $14 billion in low-interest loans for automakers to keep them solvent through the first quarter of 2009. It also includes - or it establishes, or would establish a position of a car czar; someone that the president appoints to oversee the restructuring of these automakers in Detroit. Well, a lot of the Senate Republicans appear to be coalescing around a plan being put forth by Tennessee Republican Bob Corker. A couple of things that he wants to see, having autoworkers who work for the Big Three, basically accepting wages that are on par with U.S. workers who work for foreign automakers, who are making cars though, here domestically, in the U.S.
Also, he would like to force autoworkers to basically reduce a great deal of their debt, because as you know, some of them are in tens of billions of dollars of debt, and he would want to see them, basically, not be taking taxpayer money and just plugging a debt hole before say filing for bankruptcy. If they couldn't get rid of some of that debt, Don -- under Corker's plan -- they would have to basically go into bankruptcy in March. So, again, working at this point, behind closed doors, we could be seeing a vote as soon as today, but it is still unclear whether there will be enough votes to push this thing through the Senate.
LEMON: CNN's Brianna Keilar. Brianna, we appreciate it.
OK, we have talked a lot about the Big Three scandals - the Big Three and the big bailouts, well, now it is little guys. Turn about 200 little guys, and that is what we are talking about. I'm talking about some factory workers, in Chicago, who ended their six-day sit-in at their closed plant. This after two big banks agreed to lend the failed company nearly $2 million to pay outstanding wages and benefits. The workers took over Republic Windows & Doors after getting canned with only three days' notice.
(BEGIN VIDEO CLIP)
ARMANDO ROBLES, PRES., UE WORKERS LOCAL 1110: We have achieved a victory. We say we will not go out until we get justice. We have it.
CROWD CHANTING: Yes, we can! Yes, we can!
LEMON: Workers and union organizers cheered the settlement deal. The banks came through with the cash after first saying they didn't want to loan Republic anymore money. The workers get about $6,000 each.
It is something we haven't seen in more than a quarter century and something no one ever wants to see again. Just when you thought the unemployment lines couldn't get any longer, well, they just did, unfortunately.
Adults might not be the only ones going without this year. Toys for Tots is having trouble filling its chest. More tots in need, fewer toys to give. We will tell you how you can help.
(COMMERCIAL BREAK)
LEMON: All right. Look at that. Snow, and a lot of it in places where you don't expect it. Check out these pictures. Guess where it? That is New Orleans, New Orleans. Where the snow is really, really coming down. The same scene is happening in Mississippi, where up to four inches of snow is expected today. And it hasn't snowed in Mississippi on December 11th since the 1800s. I feel like I should be on "Cash Cab" or something or "Game Show." Well, the system moved into Louisiana and Mississippi after coating Houston and other parts of Southeast Texas with several inches. The last time Houston got snow was Christmas Eve, four years ago.
If you are going to get snow, Reynolds Wolf, I guess it would be, you'd want to get it on Christmas or Christmas Eve.
REYNOLDS WOLF, CNN METEOROLOGIST: Absolutely.
LEMON: So you can stay in and be cozy.
WOLF: Yes.
LEMON: But this is a big storm we are talking about?
WOLF: It is a big storm, no doubt, meaning so much to millions of people around the country, and especially people in the Southeast and along parts of the Eastern Seaboard.
We will get things started with this weather report by showing you temperatures. What in the world would temperatures have to do with this big story? Really it has everything to do with the story.
You have that area of low pressure that is right over the heart of the panhandle, and with that low, kind of moving with that wind, counterclockwise, it is pulling in a lot of cold air from north. Nashville with 37 degrees, Jackson with 36 degrees, as we have in the cities, but there are many outlying areas where temperatures are below the freezing point.
And you will notice also, a little bit of a grade in here, to say the least. When I say little, I say that tongue and check. We have a nearly 20-degree swing from Atlanta to Mobile. As that system pulls its way to the east what it is going to do is bring in warm muggy air from the south; that cool air sliding in right behind that low. We have a chance of thunderstorms out to the east, but back out to the west and parts of Mississippi and into Louisiana, and that wrap around precipitation mixing with the cold air will bring you that snowfall.
Some places it is a potential of 2 to 4 inches of that light to moderate snowfall as that system edges eastward. Now, if you are in Alabama or back into Georgia, snow is not going to be an issue, the rain will. On this rare image, you see everything, in Jacksonville, it is -- well, Jackson rather, you have a rain/sleet/snow , even some tornadoes that can be observed in this area. And not tornadoes with this system, but tornadoes are of the big picture you will see. Could form in parts of the Carolinas.
Over on the back side of the system, you have cold air surging to the south and the rain to the north. Here is where you have the possibility of seeing some tornadic activity, mainly along parts of the Outer Banks, into South Carolina, too. And this watch, this tornado watch is going to be in effective until p.m. this evening. And with it, the possibilities of tornadoes, Don, you still have a chance of getting some flash flooding. You could have some issues with low-lying areas. Places that have poor drainage. It is certainly something to watch out for and we will keep you posted on all the details.
LEMON: And in Jackson, Mississippi, you said rain, sleet, snow
WOLF: Rain, sleet, snow, a little bit of thunder boomers, a little bit of everything.
LEMON: So the postal carriers are earning their reputations today?
WOLF: No question. No question. You have it a big plethora of weather conditions there.
LEMON: Best of luck to everyone in that area. Thank you, Reynolds Wolf.
Tom Daschle says he is looking forward to serving his country again. The former Senate majority leader picked for a key post in the Obama administration. We have details for you.
(COMMERCIAL BREAK)
LEMON: OK. You can brace yourself then, if you are not sitting down, you may want to sit down. The latest job figures, they are out. Or should I say the latest jobless figures is probably a more accurate way of portraying this. The number of Americans filing new claims for jobless benefits has hit a 26-year high. Labor Department says that the first-time filings for benefits jumped to 573,000 just last week, the most since November of 1982. That is way above and beyond what economists have predicted. The U.S. has lost 1.9 million jobs so far this year.
Well, with numbers like that, you know, it might be hard to get into the Christmas spirit, and who would -- if you are laid off, who would want to? Well, there is one group that is trying to make sure every needy kid in America has a gift to open. But getting donations can be a tough sell in tough times. Our photographer Bob Crowley visited the Toys For Tots in Boston.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Good afternoon, Toys For Tots.
KAY CARPENTER, TOYS FOR TOTS VOLUNTEER: Toys For Tots started by the Marine Corps in 1947.
UNIDENTIFIED FEMALE: Do you have an idea of how many toys you collected?
CARPENTER: The Marine Corps Reserve picked it up as something they would do at Christmas to distribute toys to needy children.
UNIDENTIFIED FEMALE: Would you bag these?
SGT. DANIEL SAMPSON, U.S. MARINE CORPS: This is the warehouse for the Greater Boston Toys For Tots program. All of the toys from the local areas, and collection points, and events, come into this facility. They go into the orders, and then they go right out from this area.
CARPENTER: The needs this year is rather overwhelming.
UNIDENTIFIED FEMALE: These games here, all behind you.
UNIDENTIFIED MALE: We do have some. We've got like 31 for the boys.
UNIDENTIFIED MALE: 46 of 125.
BETTY WHALEN, TOYS FOR TOS VOLUNTEER: We are at a standstill. We can't fill anymore orders. We are down the zip. These bins should be full of the toys in their respective age groups. And as you can see, there is absolutely nothing in them. Normally, we would throw the toys in there, but we haven't even bothered putting them in there, because as soon as they come in, we just start bagging them.
It is really bad. I have never seen it this bad. I am sure that the economy has a lot to do with it.
UNIDENTIFIED FEMALE: If we can get them in earlier then some of the people that are on the waiting list might be able to receive toys.
CARPENTER: I hope that we get enough help that we can fill all of the orders. And right this minute, it looks like we will be turning people away.
SAMPSON: Every kid deserves a present on Christmas. Just to put that smile on a kid's face that might not have a toy on Christmas, it really makes it worthwhile.
(END VIDEOTAPE)
LEMON: Well, you know what, there is a happy ending to the story. We just found out that the Boston Toys For Tots program has gotten more last-minute donations, so they can fill the orders. But volunteers in other cities say they are still hurting. Now, if you would like to help logon to www.toysfortots.org. Here is a challenge for everyone who follows us on Twitter, Facebook, MySpace , or I- Report. There is always someone who is hurting more than you are so if you can give to this organization, help some needy kids. I'd appreciate it. That's a challenge from me to you.
All right. You might think that you have heard it all when it comes to the Illinois governor, but what about his new nemesis? This is the interesting person in all of this. The person who will decide everything. Ahead, we'll learn a thing or two about U.S. Attorney Patrick Fitzgerald from a lawyer who used to work for him.
(COMMERCIAL BREAK)
LEMON: President-Elect Barack Obama has made another key appointment as he prepares for the presidency. He has tapped former Senate Majority Leader Tom Daschle to be his secretary of Health and Human Services. And he has picked Daschle to head up the White House Office of Health Reform.
(BEGIN VIDEO CLIP)
TOM DASCHLE, HHS SECRETARY NOMINEE: One of the first conversations I had with then-Senate candidate Obama was about the need for meaningful national health care reform. Today, I'm grateful to President-Elect Obama for giving me the chance to make that a reality. I am honored by your trust, and I look forward to the opportunity to serve our nation once again.
(END VIDEO CLIP)
LEMON: Well, the president-elect has picked Jeanne Lambrew as deputy director of the White House office of Health Reform. And sources say he is likely to name Steven Chu, a physicist who runs the Lawrence Berkeley National Laboratory as his Energy secretary. And Carol Browner as his so-called climate czar; she was EPA administrator in the Clinton administration.
At long last, promising news on the housing front. Foreclosure filings in the U.S., well they dipped in November, but experts say not so fast. Our Susan Lisovicz joins us now from the New York Stock Exchange with more.
Susan, there is always a catch with this. And what is that catch?
LISOVICZ: Well, the catch is that this is a temporary lull, Don. This is the aftermath of a very big bubble bursting in the housing market, followed by the credit bubble, and now just a nasty recession. Foreclosure filings dipped 7 percent in November from the previous month. Experts say hold the applause, just likely a lull in active before another storm hits the market.
Of course, already more than 1 million homes have been lost to foreclosure since the start of the housing crisis in the summer of '07. And vacation home hot spots like Arizona, Nevada Florida, continue to take the brunt of the impact, Don.
LEMON: Unfortunately, Susan, there are a lot of bad signs out there supporting the theory that things are going to get worse. We hear it all the time. It is going to get worse before it gets better. I mean, how much worse can it get, you know?
LISOVICZ: Well, the beginning of the new year is going probably to be rough, Don. Well, first of all Fannie Mae and Freddie Mac both announced moratoriums on foreclosures and so did a number of major lenders as well as some states. So that delays foreclosures, it doesn't necessarily stop them.
Meanwhile, job losses, I mean, they are a continuing story. Just today we heard about layoffs at toolmaker Stanley Works, and baked goods company Sarah Lee, that accounts for nearly 3,000 just between the two of them.
Some argue that foreclosure prevention efforts aren't working as well as they should. Many borrowers who modified their mortgages the first part of this year are delinquent again and delinquencies sometimes turn into foreclosures. So, just something to keep in mind as we go forward.
Now, let's take a look at the market. Well, we have been up, and we have been down, we have been flat. And right now with 90 minutes to go in the session, the Dow industrials are off 68 points or about .75 percent. The Nasdaq is down 1.33 percent. Very, very light volume, Don. Very cautious today in that sense, in that we are still waiting to hear -- still, waiting to hear what will happen with the Big Three.
LEMON: Yeah, that is going to be interesting. Susan, save this live shot, you look great. You are matching the green bug, and everything behind you. It's all working for you today, my friend.
LISOVICZ: I'd like to say I planned it, you know.
(LAUGHTER)
But, I didn't.
LEMON: All right. Run this one off, save it. All right. Thank you very much Susan Lisovicz.
Time now to tell you what we are working on, because it is the bottom of the hour right now. Here is what is happening in the NEWSROOM.
Forensics teams are trying to identify a child's skeletal remains found near the home of missing toddler, Caylee Anthony. A utility worker discovered a plastic bag with bones inside. It happened just this morning.
Caylee Anthony has not been seen since June. Her mom, Casey -- well she has been charged with murder.
The jury in the Brian Nichols trial is having trouble agreeing on a sentence. Prosecutors want the death penalty for the Atlanta courthouse shooter. But jurors have told the judge, they are split. He is expected to poll them again this afternoon.
And more pressure on the governor of Illinois to resign. President-elect Barack Obama today repeating his call for Rod Blagojevich to step down. The governor is accused of trying to sell Obama's empty Senate seat to the highest bidder. The president-elect says that he is sure his staffers were -- quote -- "not involved in any way" -- end quote.
All right. So what an introduction to national stage. The first lady of Illinois making a rude, crude debut, sort of. People are kind of beating up on her a little bit. But is Patti Blagojevich -- who is she anyway?
(COMMERCIAL BREAK)
LEMON: OK. You know what? She is the woman by the Illinois governor's side here. And while Patti Blagojevich doesn't face charges, wiretaps show she shares the governor's combative and sometimes crude verbal style.
I think we are beating up on her a little bit. Who has not said something bad on the telephone?
But anyway, let's move on and watch CNN's Gary Tuchman's report.
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Happier times for the Blagojevich family, when they had their second child in 2003.
GOV. ROD BLAGOJEVICH (D), ILLINOIS: I think she takes after her daddy. She wanted to stay close to her mother. Both she and I love Patti so much we always like to be close.
TUCHMAN: Now news helicopters hover over Patti Blagojevich's home that she shares with her husband and two daughters, who are seen going to the car, with their mother following behind. Patricia Blagojevich, a woman who, if prosecutors are right, stands by her man, in an unflattering and sometimes foul-mouthed style.
Regarding the accusation that her husband wanted "The Chicago Tribune" to fire editorial writers in return for state help for the company to sell Wrigley Field, home of the Chicago Cubs, the wire tappers say she said: "Hold up that 'bleeping' Cubs 'bleep.' 'Bleep' them."
And did she endorse the plot to get rid of the newspaper employees? Patti Blagojevich, who has been in the real estate business, is allegedly caught dishing this: "Just fire the writers."
And she and her husband are alleged to have schemed to get her high-paying positions on corporate boards.
The public has seen a much different Patti Blagojevich. This when she was asked her baby daughter's middle name.
PATTI BLAGOJEVICH, WIFE OF ROD BLAGOJEVICH: We just do an initial. With a last name like Blagojevich, you don't really need a middle name.
CAROL MARIN, COLUMNIST, "THE CHICAGO SUN-TIMES": This is not a frilly first lady.
TUCHMAN: Carol Marin is a political columnist for "The Chicago Sun-Times" and the political editor for Chicago's WMAQ-TV, a long-time observer of Illinois' often corrupt political scene.
MARIN: She herself has come under investigation by the U.S. Attorney's Office, because some of her real estate deals were done in concert with the governor's fundraiser, who now sits in a federal prison on corruption charges.
TUCHMAN: Patti Blagojevich is from a political blue blood family. Her sister, Deborah Mell, will be sworn in as a new state representative next month. But it's her father who's exceptionally well known in Chicago politics. Richard Mell has been a city alderman, the equivalent of a councilman, for 33 years.
Mell has had a falling out with his son-in-law, the governor.
MARIN: This is a family at war for reasons that are hard to completely understand. But the father-in-law is a power broker, and the son-in-law, Blagojevich, became the governor. And so when that business splintered, it was -- I mean, Thanksgiving is a bad holiday for the Blagojevich/Mells.
TUCHMAN: We wanted to talk to Richard Mell about his daughter and son-in-law. He would not go on camera, but gave us this statement: "My main concern right now is for my daughter and grandchildren. I would rather not discuss this sad situation in the public venue at this time."
And sad it is. Patti and Rod Blagojevich's little girls will now have to compete for the attention of their parents with their father about to enter a legal maelstrom. Things have changed since this pitifully ironic statement when the governor talked about his newborn.
R. BLAGOJEVICH: She's happy, contented, very straight forward, very honest, which means no political career.
TUCHMAN: Gary Tuchman, CNN, Chicago.
(END VIDEOTAPE)
LEMON: All right. So, my producer yelled at me for editorializing. But I still feel the same way. That is a pressure cooker to be in, to grow up in a family like that and be in the spotlight. So let's cut her some slack, just a little bit guys.
OK, Patti Blagojevich is standing by her husband's side, but there are a whole lot of people standing by -- against him, I should say. Chief among them, U.S. Attorney, Patrick Fitzgerald, a very high profile prosecutor, now tackling what could be his most high profile case. Joel Levin worked directly with Fitzgerald in the U.S. Attorney's Office in Chicago for seven years. And if anyone can tell us more about Pat Fitzgerald, it is him.
OK, so you worked with him. And this guy -- he is no -- he takes no prisoners. We know that. Came to Chicago to rout out corruption in Illinois. Did you like him as a person, to work for him?
JOEL LEVIN, FMR. FEDERAL PROSECUTOR: Yes, I did, Don. Pat was a great guy to work for.
He is the kind of guy that provided very meaningful input and guidance in cases. And he knows the job, because he has done the job, is a line prosecutor. But, he's also -- he's a personable guy. He cares about the people in the office. He'd walk around the office, poke his head in peoples' offices to see how they were doing.
And it's not just the high profile cases that he was concerned about. It was really all of the cases in the office.
LEMON: He is personable but --
LEVIN: So yes, I would say he was a great guy to work for.
LEMON: Personable, but he is focused. He keeps it very close to the vest. I remember every reporter trying to get some information, trying to get -- find out about Patrick Fitzgerald. Who is he dating? What is he like? What does he do? Where does he eat? Just anything.
Nothing -- Mr. Levin.
LEVIN: Well, you know, Pat is a private person. He obviously -- he's not a one-dimensional person, he's not just the person that you see in the press conferences. But he does want to keep his private life private and personal, and people in the office respect that.
But he does do other things other than work. He enjoys a very full private and personal life.
LEMON: And recently married, right? Correct?
LEVIN: Right.
LEMON: OK. And here is a funny thing, name one of "People" magazine's sexiest men of 2000 -- you've got to laugh at that. Come on.
LEVIN: He has taken some ribbing about that over the years.
LEMON: I guess power is sexy.
OK. So let's move on and talk about him as a prosecutor. As I said from the very beginning, he wants to rout out corruption in Illinois and Chicago. Might he use Governor Rod Blagojevich as an example? Might he use him to take other people down, all of those corrupt politicians that he wants to go after in Chicago?
LEVIN: Well, you know, where this case is going to lead, I think, is somewhat uncertain. I have every reason to believe that Pat and the team of prosecutors who are handling this case are going to handle it just like they have handled every other case that the office has handled involving political corruption.
I suspect that they are out there today and will be in the coming months interviewing, following up on leads. And they will take the case wherever the evidence leads.
Pat is a relentless investigator. He is working with a very talented group of people over there.
LEMON: OK.
LEVIN: And I am -- sure --
LEMON: Real quickly --
LEVIN: -- I am sure they are going to take it as far as they can take it.
LEMON: OK. If you have one moment, and I really -- I only have like 10, 15 seconds here -- one thing that you remember about him most, working with him, his work ethic, personally, whatever. Tell us.
LEVIN: Well, as I said, I think Pat is the complete package. He is a very hard worker, but he is also a person who cares about people, who works well with people and who was just an ideal boss to work for.
LEMON: All right. Thank you very much for that.
Joel Levin, the former federal prosecutor. He worked with Patrick Fitzgerald.
We appreciate the insight. We haven't learned that much about him here, I don't believe. So thank you, sir.
LEVIN: Thank you.
LEMON: OK.
So listen, we are taking your responses here today in the CNN NEWSROOM. We have been asking you the logon to Twitter, MySpace, Facebook, i-Report. These are -- I want to get to, if I can, some of the MySpace ones later. Let's see what it is --
This is Twitter? Yes, we'll get to Twitter then.
"We need to care. When we stop caring about our elected leadership, we get the kind of results we are seeing in Illinois."
So, I guess, we're asking people what they thought about this.
"Our Democratic process had taken one step forward, now two steps back."
That is some negativity.
And then one person, Punky Pixie (ph) -- I like that name, that's pretty cool -- says, "I am happy that BOA caved and gave money to those workers in Chicago. Finally, the people win over the corporations."
And there are several more. Thank you so much for logging on. Make sure you go to Twitter, MySpace, i-Report, which -- ireport.com, Facebook or what have you and send us your response we'll get them on the air.
As a matter of fact -- there they are, some of them scrolling right at the bottom of your screen.
A company claims it has a new technology that will kick fossil fuels to the curb. Are we looking at a power revolution? Our Energy Fix team has been checking it out.
(COMMERCIAL BREAK)
LEMON: All right. Well, CNN is getting an exclusive look at a new power cell that could revolutionize the energy industry.
CNNMoney.com' Poppy Harlow has our Energy Fix today.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM: Blacklight. The name conjures up a bad science fiction novel. But inside this laboratory, Dr. Randell Mills, who got his medical degree from Harvard, has toiled away for years on a new source of energy, a discovery, he says, on the scale of fire.
DR. RANDELL MILLS, BLACKLIGHT POWER FOUNDER: We think this will be the replacement for fossil fuel, gas, nuclear and other forms of energy. There's no nuclear radiation and there's no CO2 emissions. So we've done that all on less than $60 million with under 30 people.
HARLOW: The process uses water, a form of salt and other common materials to create a chemical reaction they say is 200 times more powerful than gasoline or coal combustion. And it's cheap, estimated to cost one to two cents per kilowatt hour versus 6 to 10 cents for coal or natural gas.
The only problem, many scientists say the technology violates the basic laws of quantum physics.
What we're seeing is a significant burst of heat.
HARLOW: Blacklight hired engineering professor Peter Jansson of New Jersey's Rowan University to independently validate its claims.
JANSSON: The astounding part of this is it's all coming out in about 15 to 20, 25 seconds. HARLOW: He's one of very few in the scientific community who is convinced that Blacklight is on to something. So are a growing number of Wall Street and business executives.
(END VIDEOTAPE)
HARLOW: Now, New Mexico's Esticato (ph) Energy is the first utility company to sign on, announcing today it is licensing the Blacklight process to engineer a power plant that, Don, could provide electricity to some 3,000 households and local businesses -- Don.
LEMON: You know what, Poppy? This almost sounds too good to be true. When will this power plant be up and running?
HARLOW: It is interesting, because that is what all the critics are saying. It is supposed to be -- according to the company -- up and running in five years. The prototype you just saw, that was just for 50 kilowatts. That would power a few homes. The plants really want to see a bigger prototype, about five times that, before they really commit to it.
But one New Mexico company, Don, is signing on to this. It is really interesting. If it works, it will really revolutionize the entire energy picture -- Don.
LEMON: Wow. Good stuff, Poppy.
And Poppy, you know, this weekend I had our i-Reporters, by web cam, ask me questions.
HARLOW: Yes.
LEMON: Every college student who has a web cam has been sending in e-mails, I want to ask Poppy some questions.
HARLOW: Send them on. We will answer them on Energy Fix.
LEMON: OK. We'll do that.
HARLOW: OK.
LEMON: All right, thank you, Poppy. Always good to see you.
HARLOW: You're welcome.
LEMON: The feel good story of the day. A 102-year-old woman thought she would never see her stolen ring again. Lucky for her, one jeweler has a heart of gold.
And, they're presidential advisers who work for free? Why? Shouldn't the first lady get a paycheck?
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LEMON: As always, Team Sanchez, or as I like to call him, Pretty Ricky -- he is back there working on some things for the NEWSROOM next hour.
Hey, Rick. good to see you, my friend. What do you have for us?
RICK SANCHEZ, CNN ANCHOR: Diligently. Our staff has diligently been preparing stuff for you. You know, this Caylee Anthony story is starting to look a little different, Don, and here's why. We've been checking with some authorities and they're saying that the way police are responding to this, thus far and the way that they're acting is very different from the last time that they were dealing with a situation, which resulted with a lot of folks with a little bit egg on their face when they thought they'd found the remains of Caylee Anthony.
So, we're going to be drilling down on that. And of course, the big story that everyone seems to be talking about, it what's going on in your home town of Chicago.
If Blagojevich says that there was an emissary who came to him on behalf of Jesse Jackson, Jr., offering up some kind of deal, you read it in the transcript yourself, then who is this emissary, and is he today talking to authorities, as well? Just one of the questions that's being asked on a day when a lot of people are having a lot of conversations with lawyers.
LEMON: I've been calling around trying to find out who this emissary is. And I spoke to two people who some people thought it was. They denied it, Rick. So I -- you know, check into that.
SANCHEZ: Denial.
LEMON: Yes, of course they're going to deny it.
SANCHEZ: Denial is a word you're going to hear a lot during this thing.
LEMON: I'll tell you real quick, Rick. I'll be in Chicago tonight digging on that story. If I find something, I'll bring it to you tomorrow.
SANCHEZ: I appreciate that, Don.
LEMON: Thank you. See you in a little bit, Rick.
SANCHEZ: All right. We will.
LEMON: All right. Let's talk about the First Lady-elect. Michelle Obama is adding another job title in addition to wife, mother, and attorney; First Lady. Lots of events to go to, hands to shake, and all of that. You know about it. So much so in fact, we were wondering, should First Lady's be paid?
Here's CNN's Alina Cho.
(BEGIN VIDEOTAPE)
ALINA CHO, CNN CORRESPONDENT (voice-over): She'll make history as the nation's first black first lady. But even before her husband's historic win, Michelle Obama was a powerhouse in her own right, an Ivy league educated lawyer with a six figure salary. In a month, she'll be moving into a new home and a new full time job, working for free.
PROF. ROBERT THOMPSON, SYRACUSE UNIVERSITY NEWHOUSE SCHOOL: I think most Americans when they hear the phrase "first lady" still think China patterns, tours through the White House.
CHO: Jacqueline Kennedy won an Emmy for her TV tour of the White House. William Howard Taft's wife, Helen, attended cabinet meetings, but she said only to keep her husband awake. Nancy Reagan had her "Just Say No" campaign. Then came Hillary.
SEN. HILLARY CLINTON (D), NEW YORK: I suppose I could have stayed home and baked cookies and made tea, but what I decided to do was to fulfill my profession.
CHO: Hillary Clinton redefined the role of first lady, taking on health care, traveling the world. Yet she was never paid a cent.
LISA CAPUTO, DEMOCRATIC STRATEGIST: We used to joke that we were a moving public works project. Wherever we would go, there would be new roads paved literally. She defined that role for herself and I think in many ways, helped pave the ground for future first ladies.
CHO: Like Michelle Obama.
THOMPSON: More and more presidents are going to, I think, have spouses who actually come to the job with a life, with a career. And the kind of things that they do might, in fact, be useful things to employ.
CHO: But a salaried first lady? Some say the pay is in the perks. Big fancy house. First class travel. Elegant dinners. So what does the current office holder think?
LAURA BUSH, FIRST LADY OF THE UNITED STATES: No. I don't think it should be a paid post. The spouse of the president is not an office holder. We weren't elected.
CHO: According to her social secretary, Hillary Clinton, for example, attended on average 500 events a year. She travelled to 82 foreign countries. And all over the U.S. there are meetings, events, bill signings, photo-ops with spelling bee winners and of course at this time of year, all those the holiday parties. A lot of work, a lot of planning, but no pay.
Alina Cho, CNN, New York.
(END VIDEOTAPE)
LEMON: All right. Let's not forget that Eleanor Roosevelt really redefined the role of first lady. She was politically active during her husband Franklin's administration in the Great Depression. And she was the first, First Lady to hold a weekly press conference. And she wrote a syndicated newspaper column. Never got paid for any of it. FYI.
OK. A jeweler's keen eye and good heart make an elderly woman's Christmas wish come true. More on an awful crime with a priceless ending.
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LEMON: OK. So he put a ring back on its grateful owner's finger. And a couple of alleged crooks in bracelets. Talking about handcuffs.
A great preholiday story out of Oklahoma City. After seeing a news story, a local jeweler realized he bought a hot diamond ring. Turns out, it belonged to a 102 year old woman. A Christmas gift from her late husband, back in 1976.
Well, the jeweler called the cops, who hooked him up with one happy lady. And her nurse's aide and the aide's husband have been arrested in connection with that case.
That it is for me. I'm Don Lemon. Good to see all of you.
Now let's turn it over to Rick Sanchez, with the next hour of the CNN NEWSROOM.
