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Illinois Attorney General Calls for Removal of Blagojevich; Jesse Jackson Jr. Opens up on Blagojevich Scandal; Treasury May Use Bank Bailout to Help Automakers; Fire in Capitol Visitors Center

Aired December 12, 2008 - 13:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

BETTY NGUYEN, CNN ANCHOR: And we have been listening to Illinois Attorney General Lisa Madigan. All right. Giving her just a minute now to continue speaking here.
Essentially, what has happened is the attorney general is taking this to the court. She has filed a temporary restraining order against the governor, simply shutting him down and blocking him, first and foremost, from appointing someone to fill Barack Obama's vacated Senate seat.

Let's get the latest now from CNN's Susan Roesgen. She joins us now live from Chicago -- Susan.

SUSAN ROESGEN, CNN CORRESPONDENT: Betty, I think this is a very strange scene that we're witnessing for one reason: because the state attorney general there is in the Thompson Center. That's a state building in downtown Chicago, and just a few floors above him, as she mentioned there, on the 16th floor of that same building, is the governor's office.

So she has sent up this motion, this ruling, up to his office to alert him that she is alerting the state Supreme Court that she wants it file this temporary restraining order to remove him, at least temporarily, until the state Supreme Court can decide on whether or not he is indeed unable to, as she put it, legitimately and effectively do the duties of his office.

Now, he's upstairs on the 16th floor. He might be watching her right now on his television. He could theoretically stroll downstairs and say, "OK, here I am, Lisa. I'm going to resign. I'm going to do it right now." That has just not happened.

We saw the governor this morning leave his house in what looked like a black track suit. The pants had three white stripes down the side, like Adidas track suits. He got into a car and left. Before that, he gave a little wave to reporters when three African-American ministers from a church near his home on the South Side of Chicago went to his door. He welcomed them in.

We asked those ministers later what they were doing there. And they said they were there to pray with him. Now, one in particular said, "We're not here for any political statements. We are here to pray with the governor."

So what were they praying with him about? Perhaps what his next move should be. The ball is in his court right now until this petition for a temporary restraining order is ruled upon by the Illinois Supreme Court.

But again, you know, the state attorney general there, Betty, said, look, the word "deliberate" and the word "legitimate," these things are words that could be interpreted many different ways. This is a guy who is on life support politically, but he's not on life support physically. So is it truly a situation where the governor is incapable of effectively doing his job? That's the issue.

So first things first. She wants a temporary restraining order to get him out of office immediately. Then she wants the Illinois Supreme Court to rule on whether or not he is able to continue to be an effective governor for the state of Louisiana.

In the meantime, Betty, the Illinois state legislature meets Monday to begin impeachment proceedings. And the one thing that was only barely touched on in that entire news conference was the golden ring that the governor still possesses right now. The reason why they want to hurry and get him out of there is because he still has the ability to appoint a successor to Barack Obama in the Senate. And he still has the legal right to appoint himself in the Senate. Stranger things have happened now in this state. He could still do that.

So this is why there is this big push to get him out right away, so that the control of that Senate seat, that very important Senate seat, goes now to the hands of the lieutenant governor, Patrick Quinn, who's a Democrat also. And he says he will appoint the successor.

So really interesting day here in Illinois politics.

NGUYEN: Yes. There are a lot of balls in motion, a lot of players, as well. Susan, thank you for that.

Also want to speak now with CNN's Don Lemon, who joins us on the phone. He just finished interviewing Jesse Jackson Jr., who we have learned in the past couple of days is believed to be candidate -- Senate candidate No. 5.

Don, what did he tell you today?

DON LEMON, CNN CORRESPONDENT: Hey, Betty. Some very interesting information coming out of that interview.

I just want to go back real quick before I give you this breaking news on this to tell you about Governor Rod Blagojevich. When Susan Roesgen said who knows? He could be up there watching that press conference. He absolutely is watching the press conference and paying close attention to everything here.

As you can tell by reading the information in the complaint, also in the news account, he pays attention to news stories about him, about his administration very closely. You can best believe he is watching this.

Now back to the person we had been calling, or that at least, according to him, self-admittedly, and his attorneys, as candidate No. 5, Jesse Jackson Jr. Just left his house just a couple minutes ago and did a very interesting interview with him, and his wife, who insisted upon being by his side for the interview.

He talked about new reports that are in the "Chicago Tribune" today about him, and associations, apparently, according to the "Tribune," possible shady business associations with Indian businessmen here in the Chicago area and his brother Jonathan, who is possibly an emissary on his part to raise money for that Senate seat.

The congressman denies all of that, denies any family involvement, any person as an emissary and says no one at any point tried to raise money for him.

Went through a long succession of questions, Betty, about the process, about his interview with the governor on Monday, just before the governor was arrested by federal investigators. We talked about what they talked about in that meeting. He said during the meeting there was no suggestion of any quid pro quo. That's what he said.

Now, here's the interesting part. He says he was so excited about that meeting, then after seeing the complaint, and talking to people who are close to this investigation, he doesn't believe that the governor ever, ever was going to appoint him and was using him as a pawn to try to get what he wanted out of it.

He even alluded to the governor's mental illness during the interview and, at one point, started tearing up, talking about how he had lost his name, that he is fighting for his political career and his life. And his family now, he is concerned about finances, because now he has to hire an attorney, and an expensive attorney, to try to get him out of this mess.

But it was a very, very interesting interview, Betty, that's going to run today, a little bit later on in the NEWSROOM, as soon as I can get some tape back to you and also on "THE SITUATION ROOM" with Wolf Blitzer. But I'd never seen him this passionate. I've never seen him break down like this. And I'd never seen his wife so emotional about it.

And his wife offered up some words that you will want to hear about Patty Blagojevich and her relationship with her, Betty.

NGUYEN: Well, Don, let me ask you this. If none of this ever happened, according to Jesse Jackson Jr., what does he have to say about this? What we're learning from that wiretapping that the governor allegedly said?

LEMON: Well, the governor allegedly said about him or about -- about...?

NGUYEN: Yes. About Senate candidate No. 5?

LEMON: Well, here's the thing. And this is -- he talks about it in this interview. And it's not just him who's telling me this. A lot of people here, politically inclined people, and people who are involved in the process, believe that Rod Blagojevich has some, shall we say, serious issues. During the interview I said to Congressman Jackson...

NGUYEN: Are you talking mental illness? I mean, what kind of issues?

LEMON: Yes, yes. Yes, he talked about that in the interview. And other people are saying the same thing. If it's not narcissism or some other sort of, you know, social illness, you know, I'm not a psychologist.

NGUYEN: So are you saying fantasy? It was all made up, everything that he was saying?

LEMON: Yes, they're alluding to that. And I asked the congressman. I said, "Are you saying to me that he's delusional?"

He said, "Well, those are your words, but I would say to you, if you -- if you look at the record and you look at those transcripts, that there's something, something is not right with the governor."

NGUYEN: Hmm.

LEMON: And again, as you said, they don't believe -- some people don't believe that what he's saying is true. That a lot of this may be made up.

NGUYEN: Interesting.

LEMON: And there may not be an emissary. There may not be a candidate number, what have you, at least in the way that he portrays it.

NGUYEN: Well, we are looking forward to that interview. Don Lemon, speaking with Jesse Jackson Jr. today. Don, thank you so much for that. We'll be checking in with you a little bit later throughout the day right here on CNN.

In the meantime, though, roll out the TARP, because hours after $14 billion in bailout loans for GM and Chrysler hit a brick wall in the Senate, the White House and treasury say they may tap the bank bailout after all.

Until now, they were dead set against using the Troubled Asset Relief Program, or TARP, as it's called, for anything other than banks. Well, stock markets, they plunged around the world when the loan package crafted by the White House and Democratic lawmakers just collapsed.

Republicans want a quick and deep pay cuts by union auto workers. But in a news conference you may have seen right here on CNN, the UAW president said that he could not let labor, quote, "shoulder the entire burden of restructuring."

Many of those who have pushed for the hardest -- or pushed the hardest for government aid in this auto bailout, wanted it to come from that TARP money. And for the White House, though, it's quite a turnaround.

CNN's Kathleen Koch has been following it all for us.

So what led to this, Kathleen?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, Betty, what really led to it was the realization that Congress now was not going to be able to do anything. And certainly, the White House was feeling the same pressure that lawmakers came under as they were trying to craft a compromise with these terrible unemployment numbers that we've seen in the recent weeks.

And so this White House, that had from the podium said, no, the TARP money, the $700 billion, is only to help the financial services sector, now says they've got to use some of it, or that's what it's looking like. That's one of the options.

Let me read you a script from a statement from press secretary Dana Perino. Quote, "A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time."

The initial $350 billion that the administration has access to from the TARP funds, about $15 billion is left. So that's certainly enough that they could give that to, or loan that to Detroit in some installments, in some way.

But the White House isn't really being specific. Now, lawmakers are saying whatever the president decides to do, he needs to act soon.

(BEGIN VIDEO CLIP)

SEN. CHRIS DODD (D-CT), BANKING CHAIRMAN: I spoke with my auto dealers in Connecticut this morning, the head of them. We have banks literally calling the mortgages on dealerships as we speak. We have -- and so the bottom is falling. The banks were watching last night what happened. Credit is completely gone.

One of my major banks in New England, who's been providing credit to dealers, has already announced there will be no more credit. So there is a cascading occurring as you and I are talking. So I'm hopeful that this day, before the day ends, the White House will make that decision, send that signal the markets need to hear, before even more damage is done.

(END VIDEO CLIP)

KOCH: Perino says that President Bush was briefed late last night about the outcome of the vote and it was certainly disappointing. She says President Bush today is talking with his economic advisers. They are looking at their options, that TARP is simply one of them. She wouldn't say what the other options are.

And also, Betty, she would not commit to any kind of time frame, even though you're seeing there is hard pressure from members of Congress for the president to act right away. NGUYEN: All right. CNN's Kathleen Koch, thank you.

KOCH: You bet.

NGUYEN: The president-elect says that he is frustrated the Big Three are in such a bind, but disappointed that the Senate could not help.

To Chicago now and CNN's Elaine Quijano.

Elaine, is it frustration, disappointment leading to some possible solutions?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yes. Well, you know, it's a good question. Remains to be seen. It really seems to be in the hands right now of the Bush administration.

But the president-elect, Barack Obama, did express his disappointment today, releasing a written statement. In that statement, the president-elect said, quote, "I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued, but I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand."

Now, the president-elect's statement went on to commend lawmakers and members of the Bush administration who really worked to try and forge a compromise on this.

He also, though, made very clear that he believes, if there is to be any short-term assistance for Detroit, that it has to include and require, really, long-term restructuring of the Big Three U.S. automakers -- Betty.

NGUYEN: All right. CNN's Elaine Quijano. Thank you, Elaine.

And -- and our next segment we're going to hear more about this step for the Big Three. What they're going to be doing next and what that actually means for you, from automotive analyst Jeff Fortson. He joins me now, live in the NEWSROOM, in fact, after this. Stay with us.

(COMMERCIAL BREAK)

NGUYEN: And we do have some breaking news. We have learned that Illinois Governor Rod Blagojevich's chief of staff, John Harris, has decided to step down. As you recall, he was arrested on Tuesday, as well as the governor. He's also named in a federal complaint, alleging that they attempted to auction off President-elect Barack Obama's Senate seat.

But once again, John Harris, the chief of staff to Governor Rod Blagojevich, has decided to step down. We'll continue to follow that part of the story, which obviously has many, many different angles to it.

But let's talk about this for just a moment. From all indications, time is still running out for at least two of the Big Three, and a crisis loan from Congress, well, that is not coming. So is bankruptcy right around the corner?

(BEGIN VIDEO CLIP)

RON GETTELFINGER, PRESIDENT, UNITED AUTO WORKERS: Bankruptcy is not an option. And it won't just be one company that's impacted. It will be two, three, others, the supply bases, they'll all be impacted. Every auto manufacturer in this country. If it goes bankrupt, let me tell you, they won't just go bankrupt. They will go into liquidation.

(END VIDEO CLIP)

NGUYEN: All right. The worst-case scenario from the UAW.

But we've also heard the White House and treasury. They're promising some sort of help. Going to be short term, we understand. And that brings me to automotive analyst Jeff Fortson. Jeff joins us now live, right here in Atlanta.

All right. So you've heard it today. We watched it play out. What's your reaction to the fact that the bailout doesn't seem like it was -- well, it didn't pass, obviously?

JEFF FORTSON, AUTOMOTIVE ANALYST: Obviously, yes, it hasn't passed as of yet, but I feel confident, as I think many Americans do, that Congress is going to pass this.

NGUYEN: Do they need it? Do they have to have it? I mean, what's so wrong with allowing them to fail? Wouldn't they come out leaner and meaner if they did?

FORTSON: If we allowed them to fail, it could directly or indirectly affect three million jobs and over $150 billion over the next three years in tax incentives, or taxes that we receive in the United States from the Big Three, from their suppliers, from the dealers. So it's a trickle-down effect with so many different factors actually looped into this system.

NGUYEN: Yes, but with a bailout, I mean, that's not going to be the magic bullet. GM says, what, "I need $4 billion by the end of the month."

FORTSON: Correct. Correct.

NGUYEN: And even with that, beginning of next year, "I need another, what, $6 billion." It's not a quick fix.

FORTSON: Correct. It's not a quick fix. We know they'll come back again. But with this bailout, there's a whole factor that's behind this that we're not focusing on.

For the past two weeks we've spent a lot of time talking about the automotive bailout, but when we look at this, we keep focusing on, well, General Motors isn't doing this, Ford isn't doing this, Chrysler isn't doing this. Here's what the imports are doing.

Well, when we look at it, overall, all the automakers fault as far as sales over 30 percent. All automakers have fuel-efficient and what we consider to be gas-guzzling vehicles. If we look at Honda, we focus on Honda America, and we look at their product line. They have four-cylinder vehicles and six-cylinder vehicles. They are the only automaker of the major five that doesn't offer an eight-cylinder vehicle. Why is it that their sales were down over 30 percent last month? Those are the things that we're not focusing on.

And the real problem is that consumers are not going to buy vehicles if they don't feel comfortable enough knowing they're going to have a job. We've lost over 500,000 jobs last month. So if consumers can't...

NGUYEN: Really, not even feeling comfortable enough buying from that dealer, because you don't know if that dealer is going to be around.

FORTSON: Well, that's a good point.

NGUYEN: So you can get a trade-in. And now you may have two payments.

FORTSON: That's a good point.

NGUYEN: Where did the dealership go?

FORTSON: That's a good point. That's another thing that consumers need to start looking at, is that before they go into a store to bay vehicle, what are some warning signs for them? How do they determine if a dealership is financially solvent, since we don't have that information publicly available? So there are warning signs which consumers can look for.

One thing consumers can look for is that if it's a dealership that normally carries a lot of inventory and now they only have half of the inventory or 25 percent of the inventory they'd normally carry in stock, that could be a clear sign that consumers should shy away from that particular store.

NGUYEN: So Jeff, what is the answer here? What is next? I mean, do these companies need to really fundamentally restructure in order to make it past -- say they get the bailout money, but in order to make it to that next step past that?

FORTSON: They're in the process now in order to -- looking at some things in order to restructure. What happens, that we tie this back into our energy gas plan.

And as gas prices actually decreased over the past few months, or actually, the past month or so, we've seen a shift in consumers actually shifting back to large SUVs and large trucks, whereas in May, as gas prices actually increased, we noticed that consumers shifted from large trucks and SUVs to cars.

So do consumers in America really want an energy plan? That's the question that we need to be looking at.

There was an episode that was on "60 Minutes" this past Sunday, where one of the Saudi officials mentioned that "We're going to do everything possible to make sure that America is dependent upon oil." So that's probably the reason why oil prices and gas prices are where they are currently right now. Because they're going to make us dependent upon it with these prices.

And we, as Americans, we're not going to hem and haw about it. If we know that we can get low gas prices, then we're going to continue to buy large vehicles and trucks.

NGUYEN: But in the meantime, you can talk about gas all day long. But in the meantime...

FORTSON: Right, right. We've got to do something now.

NGUYEN: ... these companies need to figure out what to do, because GM says...

FORTSON: We've got to do...

NGUYEN: ... it will not be able to, you know, operate unless it's gets money by end of the month.

FORTSON: We've got to give money to them now, similar to what we're doing with AIG, similar to what we've done...

NGUYEN: You say we've got to, but there are those who disagree still, because there is no plan that has been, you know, a definitive answer.

FORTSON: And there -- but -- but it's interesting how we've spent so much time focusing on what the automotive industry needs to be doing, and we haven't focused on the housing market, the credit market, which caused everything to collapse and caused the trickle effect.

NGUYEN: It seems like there's a domino effect going on.

FORTSON: Exactly. Exactly.

NGUYEN: Jeff Fortson, automotive analyst. Thanks so much for your time today. I do appreciate it.

You know, they had helped themselves to billions of dollars of your money, but are AIG executives using it to line their own pockets? That's today's bonus question. We're going to find out where your tax dollars are going.

(COMMERCIAL BREAK)

NGUYEN: All right. This just in to CNN. Take a look at these live pictures coming to us from the nation's Capitol. We understand that the Capitol Hill Visitor Center, there has been reports of smoke coming from that building.

Let's go to the ground right now and speak with CNN radio correspondent Lisa Desjardins. She joins us with the latest.

What are you seeing and hearing about this smoke in the building, there, Lisa?

LISA DESJARDINS, CNN RADIO CAPITOL HILL CORRESPONDENT: Betty, I'm inside the Capital right now, right next to where the Capital Visitor Center begins underground. This place just opened last week. But now, the steel doors are down, tourists have been evacuated. I have smelled some smoke. But we haven't seen any yet, you know, leads us to hope that if there is any kind of fire here, it's isolated. The alarms wept off about 15, 20 minutes ago. And they evacuated what seems to be a small group of tourists who were inside. Right now, we're really not sure exactly the cause. But we have smelled smoke.

NGUYEN: All right. And so you're not seeing any flames or anything to that effect? Just smelling a little bit of smoke and people have been evacuated?

DESJARDINS: That's exactly right. If there is some sort of fire inside, this is a massive $600 million facility. And you know, so, it could be very far from the entrances that they've closed down.

We don't know.

NGUYEN: And just a little bit more information on the Capitol Hill visitor center. It has a lot of meeting stations inside it of it, for lawmakers. But, also a 600 foot cafeteria, a gift shop, a gallery, a theater.

And in fact, they wanted to make sure that was opened. Which, in fact, it only opened last week. But to be sure that it would be open and ready for Inauguration Day 2009. And obviously today, it's smelling a little smoke there. We are on the story and should it turn into something much more, of course, we'll bring that to you.

Thank you, Lisa, for that report.

(WEATHER REPORT)

NGUYEN: Well, she was heading to the altar no matter what. An Indian woman who survived the Mumbai terror attacks would not let anything stand in the way of her wedding plans. Not even a bullet fragment in her head.

(COMMERCIAL BREAK)

NGUYEN: All right. We are just learning that the fire at the Capitol Hill Visitor Center is out. We want to take you now live to Lisa Desjardins, with CNN Radio. She joins us by phone.

Lisa, did you ever find out what sparked the fire? DESJARDINS: Yes, Betty. We have this from Allen Atter, a spokesperson for the D.C. Fire Department. He says, construction workers were doing some welding in a part of the Capitol Visitors Center that hasn't opened yet. And we talked about how it opened just last week. Well, they're still working on some parts and apparently some welding might have something.

His quote is, "That set off some material and we're trying to find out what the damage is." The Capitol Visitors Center is still closed. I'm looking at the steel protection doors that are now down and kind of surrounding the area.

So, you know, we've also been told by our producer Diedra Walsh, that the D.C. -- some D.C. fire trucks that arrived at the scene earlier, are now leaving. So, maybe that's a hopeful sign, though we still don't know exactly what the damage is and we don't know when the Capitol Visitors Center will reopen.

NGUYEN: Yes. But, the good news is, the fire is out. OK. Lisa --

DESJARDINS: Well, you know actually, we haven't confirmed that, separately. But, it's implied. It sounds like the fire's out. We're not -- we haven't confirmed that.

NGUYEN: Oh, you haven't? That's what we were told, what we have actually at the bottom of the screen. So, unless we're hearing something on the other end, as far as we know that it is out.

OK. Lisa Desjardins. Thank you so much for that.

(BUSINESS REPORT)

NGUYEN: Well, AIG isn't saying bonus. You know, the B word. But what the struggling insurance company is paying to executives with your money, sure does look like one.

CNN's Joe Johns asked the bonus question.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN SENIOR CORRESPONDENT (voice-over): A Wall Street riddle. When is a bonus not a bonus at all? Answer, when it's something called a retention payment. Insurance giant AIG, which just helped itself to a $150 billion bailout from the government, promised not to pay bonuses to its top 60 executives because taxpayer money is on the line. But then the company turned around and offered 168 of its top people huge payouts if they promised to stick around for a year.

REP. ELIJAH CUMMINGS (D), MARYLAND: I don't know what this is.

JOHNS: Congressman Elijah Cummings says it sure looks like bonuses to him.

CUMMINGS: And then for people who are now earning between $92,500 and, get this, and $3 million, the bonuses range from $160,000 to a million dollars. Imagine that. Somebody already making $3 million and then get a million dollar bonus and they're basically government employees, because we own 80 percent of AIG.

JOHNS: A cynic would call it the ultimate no-lose proposition.

(on camera): When business is great, the executives of AIG win big, bonuses all around. And when business is lousy and the company is staving off bankruptcy, AIG executives win big anyway, because they get paid for not abandoning the ship.

(voice-over): AIG sees it differently. They say they need to keep their best people on board so they can sell parts of the business, scale down, return to profitability and give the taxpayers their money back.

NICHOLAS ASHOOH, AIG: There's a real risk of losing people and we have lost some, even some senior executives. There's a real risk of losing your talent and their business relationships and losing value in the business, seeing the business deteriorate. So we're not going to hold a fire sale but we do want to move along expeditiously and sell these businesses and get the best value we can, so we'll have the money to repay the government.

JOHNS: Cummings isn't buying it.

CUMMINGS: The point is that these people are fortunate to have a job.

JOHNS: OK. So what's the bottom line? No matter what you think of the way AIG is doing business here, people who loan money don't like surprises. And finding out that a billion dollar bailout recipient like AIG is doling out millions to its executives might come as a surprise to some taxpayers.

NATHAN YARDI, "FORBES" MAGAZINE: The treasury and the Federal Reserve have put $150 billion in AIG. There are officials within those government institutions that know what's happening with a lot of that money, but we the public really don't know a lot about where that money is going after it's being spent and used to prop up AIG.

JOHNS: Begging the question, if bonuses aren't bonuses at all when they're called retention payments, what else is being done with your money, hundreds of billions of dollars that you don't know about?

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: All right. So, layoffs, bailouts, non-bonus bonuses. For more details on all of this and much more, just logon to CNNMoney.com. And you'll find up to the minute updates on America's economic crisis and how it effects your wallet. Again, CNNMoney.com.

In Mumbai, India, a show of solidarity with the victims of last month's terror attacks. 5,000 people link arms to form a human chain. They weaved their way past the targets of the November 26th attacks. More than 160 people lost their lives in those attacks and India blames the violence on militants based in Pakistan.

You've got to hear this story. An Indian woman who survived the terror attacks says she is very lucky to be alive. All right. We know that. But, listen to the details, now. She was wounded, but still managed to celebrate one of the biggest of the events in her life. That being her wedding day.

Her story now from CNN's Liz Neisloss .

(BEGIN VIDEOTAPE)

LIZ NEISLOSS, CNN CORRESPONDENT (voice-over): Nirmala Shankar was waiting at this busy Mumbai train station with her family. Not knowing that life would suddenly change.

NIRMALA SHANKAR, MUMBAI ATTACK SURVIVOR: I was at the waiting area. And the terrorist starting fighting from about 10 feet away from us, from behind. And then standing there. From behind then hit by a bullet. And I start profusely bleeding fell, I automatically fell in the front.

NEISLOSS: The gunman seemed to emerge out of nowhere. They were firing randomly. Nirmala's brother held her on the ground to protect her from more bullets.

SHANKAR: All I knew was people just dying in front of me. Being just shot and just falling onto the ground. It was a face-to-face with my death that I had. But, I will say that with God's grace, and of course, my brother is my hero. I must say it. And I was saved.

NEISLOSS: For Nirmala, this was supposed to be a trip to meet up with her fiance, Shankar (ph) for their wedding just days away. But instead, she was being rushed to the hospital. In the chaos, couldn't be seen immediately and so left Mumbai for Chennai, with what she thought was just a minor head wound. But tests revealed a bullet fragment had lodged in her brain.

DR. L. MURUGAN, SENIOR NEUROSURGEON, APOLLO HOSPITAL: She basically a small, metallic fragment in the right (INAUDIBLE) brain. It had entered from the left side of her head, traversed across the brain to the right side.

NEISLOSS: Despite a bullet fragment in her brain, Nirmala and Shankar wanted to go ahead with their wedding.

SHANKAR: That didn't hamper my spirits at all. I had to get married to him.

NEISLOSS: So determined, she had her traditional Indian wedding and reception. Three different bridal saris, jewels, flowers and all. Nirmala says she made the right choice, not letting the terrorists change her plans. Her husband says she's been given a second life.

SHANKAR NARAYANAN, NIRMALA'S HUSBAND: I think she's made for me. So nothing can stop our getting married. So, everything went well. The terrorists tried to stop it. She could not --

NEISLOSS: Nirmala had her surgery after the wedding. The honeymoon is on hold while Nirmala continues her treatment. Doctors say she's recovering well. Meanwhile, the couple's just happy starting a new life together.

Liz Neisloss, CNN, Chennai, India.

(END VIDEOTAPE)

NGUYEN: Well, U.S. Attorney Patrick Fitzgerald. When this guy is on your case what do you do? Embattled Governor Rod Blagojevich is getting some advice from an unlikely source. You've got it hear this.

(COMMERCIAL BREAK)

NGUYEN: All right. So, you are looking at the man who is going after Rod Blagojevich, the U.S. attorney; Patrick Fitzgerald is his name. And he is bringing a massive corruption case against the Illinois governor.

Now, when someone like this is on your trail, what do you do? Well, Blagojevich is getting advice from former "TIME" magazine reporter, Matt Cooper, of all people. You know, several years ago, Fitzgerald tried to force Cooper, seen here back in 2005 during the case, to reveal his sources in the case of Valerie Plame, a CIA operative whose identity was compromised. Well, Cooper refused. And the battle went all the way to the Supreme Court, and he narrowly avoided jail time.

Matt Cooper joins me now today, a free man, obviously.

Matt, you have written a letter to the governor in the "Chicago Tribune." It read it, it's actually very interesting because you say if he believes that he might be guilty, the best thing to do right now is go ahead and try to get a deal. Because you say, Matt, he might actually get a pretty good one. Why is that?

MATT COOPER, FMR. "TIME" MAGAZINE REPORTER: Well, Betty, I think -- Pat Fitzgerald is known as a very tough and very determined prosecutor, but in my experience having dealt with him, I don't think he is a vengeful one.

As you said, my case went all the way through the appeals courts, all the way up to the Supreme Court. And during -- at any point during that two-year journey, Pat Fitzgerald could have insisted that I be imprisoned and forced to reveal my source. He chose not to do that and let the case play out, thereby delaying his investigation by quite a bit. I say that because for Blagojevich's sake, because I think Fitzgerald is someone he can deal with.

And look, Fitzgerald is -- if he wants to stay in this U.S. attorney's job, I'm sure that the Obama administration will let him. I don't think he is likely to be replaced by someone is going to be more lenient. There is no way the Obama administration can be seen as being soft on this -- NGUYEN: So the gamble here is to deal with Fitzgerald directly, right now, because. say, under Obama's Justice Department, he may not get as good of a deal?

COOPER: I think it could get even tougher. And so I would say Fitzgerald is a tough, but reasonable guy. And you know, he is best trying to get a deal now. And, look, if he can get something akin to what George Ryan, the previous governor of Illinois, who Fitzgerald sent to jail -- he got 6 1/2 years, which allows you to be under that seven-year limit for being in a minimum security federal penitentiary. That is a significantly better quality of life prison.

It is still prison.

NGUYEN: Right.

COOPER: But it is a significantly better quality of life --

NGUYEN: We're going to get to that in just a minute. But I want to get to something that you wrote that I found really interesting. You said this in that letter, that "...it might be tempting to name yourself a senator on the same day you get indicted. But the Senate surely won't seat you and you'll only inflame Fitzgerald."

Would he really do that? What kind of bargaining chips does he have at this time?

COOPER: Well, who knows, Betty? Look, there is nothing very rational about what he seems to have done thus far, so I wouldn't preclude the possibility he'd still name someone. So you never know.

But I was just making the point when I wrote the piece that doing anything further to antagonize Fitzgerald would probably not be a wise idea.

NGUYEN: You went on to say that there is no such thing as a country club prison anymore. And as you mention, maybe his best deal is to try to get something within those seven years if he indeed has to do some kind of prison time.

COOPER: Yes, that's right. I mean, there is no -- there is a misconception out there that there are country club prisons. There really aren't. There's no -- no federal prison is a fun place to be and you're not playing tennis. They're not fun places. But at least in a minimum security place, your life is not going to be in danger, and you can -- it is tedious and it's boring and you're with a lot of people you probably don't want to be bunking with, but you're going to get through it.

And I think Blagojevich, you know, given how tough the case against him looks, that might be the best thing for him to look at.

NGUYEN: So No. 1 piece of advice at this point?

COOPER: I would just take it right to Fitzgerald, himself, sooner rather than later and start talking now. There is no sense in sort of just being standoffish. At least start to feel out what you might be able to get.

NGUYEN: All right. Matt Cooper is now the editor there at the Conde Nast Portfolio.

Thanks so much for your time today.

COOPER: Thanks, Betty.

NGUYEN: All right. Listen to this story. A limping librarian in a knee brace. Well, she didn't get this way by shushing (ph) a rowdy reader. Surveillance tape shows how a thief totally misread her.

(COMMERCIAL BREAK)

NGUYEN: You know, I've heard, "Don't mess with Texas," but here is a new one for you: don't mess with librarians. Not only can they shush you into submission, they can also throwdown when necessary. One thief in Michigan actually found that out when he snatched a donation jar at a book fundraiser. Watch this.

Bora Kim, from WDIV, has the story.

(BEGIN VIDEOTAPE)

JOSIE PARKER, LIBRARY DIRECTOR: ... time for the store, but it was still pretty busy.

BORA KIM, WDIV REPORTER: At first the store surveillance camera displayed only goodwill towards men.

J. PARKER: We wrap books for charity.

KIM: But just like that, you can see the grinch as he walked in the store, and what followed in his attempt to steal Christmas.

J. PARKER: He just looked at me and then at the box, and I realized that that is what was he going to do. It was just split second.

KIM: But Josie Parker was not about to allow it. Instantly, this librarian turned superhero. She chase him out the door before he slipped and fell in front of her.

J. PARKER: Physically I would not have been able to catch him. I have no clue what I was thinking, other than, you are not going to do this.

MARION PARKER, DAUGHTER: And it is her gut reaction that shows her sense of character, that she did just go after him.

KIM: Trying not to fall into the victim on the ground, Parker twisted her leg, the price of bravery perhaps. And happily, all $146 and change was recovered. The grinch not getting a dime.

But it was more than about the money.

J. PARKER: The amount of money in the box was irrelevant to me. It is the notion that someone would steal the charity box.

(END VIDEOTAPE)

NGUYEN: All right. So the thief did get away. Parker's leg, it should be fully healed in about six weeks.

Next hour starts right now.