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Obama Names Choice for Education Secretary; Push for Impeachment of Illinois Governor; Is Caroline Kennedy Qualified for Clinton's Senate Seat?

Aired December 16, 2008 - 12:00   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 President-elect Barack Obama today, tuning in as we've been watching him announce his nominee for education secretary. That man being Arne Duncan, the current superintendent of the Chicago Public Schools. In fact, he's run Chicago's school systems since 2001.
He was also an adviser on Obama's education policy during his campaign. But today we understand he is the pick for education secretary.

Let's take a listen to what happened during that news conference.

(BEGIN VIDEO CLIP)

ARNE DUNCAN, DEPT. OF EDUCATION SECRETARY NOMINEE: I'm deeply, deeply honored to be asked to serve in your administration. Like so many Americans, I was inspired by your campaign. I'm even more inspired by the team of people you are building to help bring much- needed change to our country.

While many issues will demand your attention, I am convinced that no issue, no issue is more pressing than education. Whether it's fighting poverty, strengthening our economy or promoting opportunity, education is the common thread.

(END VIDEO CLIP)

NGUYEN: Let's talk more now about Arne Duncan. Joining me is Roy Romer. He led the Los Angeles school district as superintendent for six years. He's also Colorado's former governor.

Thanks so much for being with us today.

ROY ROMER, FMR. COLORADO GOV.: Good to be here.

NGUYEN: All right. So what do you think about Arne Duncan? Is he a good pick?

ROMER: This is a very good pick. Let me tell you why.

He has performed, he's improved scores in his schools for seven years, each year he's been there. Secondly, he's made some tough decisions. He's closed schools that ought to be closed and he's introduced some new forms of paying teachers for performance... NGUYEN: Actually paying students for performance as well. But he's also had some controversial decisions in supporting, what, a gay high school? This is a man who's not afraid, it appears, to go with his gut and to make some decisions that others may not be exactly happy with.

ROMER: Well, look, you need to do that. He's in a city that has a lot of diversity, and you need to educate every child. And if you need a school for a particular group like that and it works, that's the kind of courage you want to see.

I was in L.A., and you need to do a lot of things in an urban area to make education work.

NGUYEN: All right. So, as education secretary, will he be able to enforce that kind of accountability like he did in Chicago, where he would shut down schools when they were underperforming and then he would open them up a little bit later when they're on par with what they should be doing? I mean, is he going to have that kind of control as education secretary?

ROMER: As education secretary, you've got to work with the partnering with states and with local districts. You don't have that kind of absolute authority. But there's a lot of work to do in this nation, and I think this president and this education secretary are going to carve some new ground where we can not only hold people accountable, but give them the tools to get the job done.

NGUYEN: OK. On the issue of new ground, you know, at least one past president, that being Reagan, has even toyed with the idea of getting rid of the Department of Education. I mean, what kind of power is held in that department? I mean, what kind of power is Duncan truly going to have?

ROMER: Well, they have funds to allocate, and they can use those in an incentive way. The real power is the leadership they can give to the nation.

This nation needs to arrive at more uniform, higher standards, and also to hold everyone accountable in this country to reach them. We're falling behind the rest of the world. We need to catch up and we need to catch up fast.

NGUYEN: And Duncan, I want to talk a little bit about his education, his past. He is a Harvard graduate. He's also pretty good on the basketball court, played for Australia for a little while.

What do you know about him personally, and is he in Obama's inner circle, shall we say?

ROMER: Yes, he is. I know him personally. He's a great guy, and I think the personal relationship with Obama will be helpful to make education an issue.

Look, you can't move on the other agendas of this government unless you also move in education. The economy is particularly dependent upon our improving our skills and our knowledge.

NGUYEN: And you know, as former superintendent of the Los Angeles schools, let me ask you this -- a lot of big problems on the table all across the nation. What are some of the big challenges that he's going to face? Some of the things that he needs to go in and try to fix?

ROMER: One, we've got to get more uniform, rigorous standards throughout the country.

Two, we've got to approve the testing. The testing needs to be a tool to aid instruction, and we need to do a lot of improvement there.

Three, the quality of teaching in the classroom needs to be improved. We need to watch how we recruit teachers, how we train teachers, how we retain them. But also, we need a way to deal with teachers that are inadequate and get them out of the school system and in other jobs.

NGUYEN: All right. Roy Romer with Strong American Schools, also head of the Los Angeles schools there for a while.

We do appreciate your insight and your time today.

ROMER: Thank you.

NGUYEN: Illinois Governor Rod Blagojevich still in charge and hinting that he is not going to back down without a fight.

(BEGIN VIDEO CLIP)

ED GENSON, BLAGOJEVICH'S ATTORNEY: He's not stepping aside. He hasn't done anything wrong. We're going fight this case.

(END VIDEO CLIP)

NGUYEN: State lawmakers are meeting right now to talk impeachment.

And our Ed Lavandera joins us now from Chicago.

Ed, any movement? Have you heard anything?

ED LAVANDERA, CNN CORRESPONDENT: Well, no. It's going to be really slow process.

You know, they -- in fact, they had just gone into the State House down in Springfield, Illinois. Lawmakers on the House side have been getting together this impeachment committee that will begin the process of formalizing the charges and this process against the governor of Illinois. They have started this.

A lot of talk this morning, and every indication so far, based on the amount of talk and the kind of talk, is that this will be a slow process. And as you know, many people here in the state of Illinois have been clamoring for a quick resolution to this. And what you hear repeatedly from many lawmakers would be it will be a lot easier if the governor just resigned to spare the state all of the drama of these impeachment proceedings. But lawmakers know this will take some time if this is the route they have to go down.

(BEGIN VIDEO CLIP)

JOHN FRITCHEY, ILLINOIS STATE HOUSE: It's been no secret that I've been critical of the governor over the last several years. That being said, I sincerely echo the comments of my colleagues.

I truly take no glee and satisfaction in being here. I've been here 12 years, longer than many of the people in legislature, but shorter than some, but I will submit to the say that I doubt any of us will find ourselves in a more solemn role than we do presently.

(END VIDEO CLIP)

LAVANDERA: And, of course, the governor is in the city of Chicago, continues to work from his state office here in the city, and we understand he is back there at work today. We're told by a spokesman that yesterday he spent much of the day conducting state business. In fact, signing several bills, including one bill, ironically enough, that was actually written about in the criminal complaint against him.

Investigators had essentially accused the governor of trying to accept a bribe or get some other sort of support for -- in exchange for his support for his bill. And that was one of the bills that was signed yesterday. So, you know, the governor here giving every indication that he will continue to work just as if it were any other day -- Betty.

NGUYEN: I tell you what, it keeps getting more interesting by the day.

Ed Lavandera, thanks so much for that report.

All right. Here's something to help you keep all the players straight in this.

Democratic Governor Rod Blagojevich is accused of trying to sell President-elect Barack Obama's Senate seat. All right? That is at issue.

Now, among other things, though, the governor allegedly suggested that his wife Patty be given a well-paid job on a corporate board. Blagojevich says he's done nothing wrong and has hired high-powered criminal defense attorney Ed Genson. U.S. attorney Patrick Fitzgerald heading up this federal investigation.

And Illinois House Speaker Mike Madigan, he is overseeing the state probe into a possible impeachment. Now, Madigan's daughter, Illinois attorney general Lisa Madigan, asked the state Supreme Court to declare Blagojevich unfit for office, and if that happens, Lieutenant governor Pat Quinn would become acting governor. Well, the American auto industry is waiting on a taxpayer jumpstart, but the White House indicated today that it is not going to speed blindly into a bailout for Detroit.

(BEGIN VIDEO CLIP)

DANA PERINO, WHITE HOUSE PRESS SECRETARY: We did not signal that it would be almost immediate. I think that there's been lots of rumors, and I know that stakeholders who are involved, either from the Hill or from the industry, have tried to push this story, and something that's imminent. I don't know of an imminent announcement coming from us.

(END VIDEO CLIP)

NGUYEN: Well, General Motors and Chrysler say they are close to bankruptcy without federal help.

President Bush is considering tapping into the financial industry bailout package Congress passed back in October. And automakers had pressed Congress to lend them some $14 billion in a standalone deal, but that plan went down in the Senate.

And a bunch of new numbers to toss around today on the economy. You ready for it? Here goes.

Prices, they plunged a dramatic 1.7 percent in November. That is the largest monthly decline on record dating all the way back to 1947. The drop brought the annual inflation rate to a tad over 1 percent.

Now, energy prices were behind much of the November decline, and they fell by a whopping 17 percent. Gas prices, though, have inched up by a tenth of a cent. They fell for 86 straight days.

Construction of new homes slumped almost 19 percent last night. Housing starts on their slowest yearly pace since 1959.

So, interest rates may be going down to the lowest level on record. What does that mean for you and your finances?

And just a few more weeks left in office, President George Bush sits down with our Senior Political Correspondent Candy Crowley. A preview of that one-on-one interview coming up.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

LARRY KING, HOST, "LARRY KING LIVE" The surprising though, Kerry, is having interviewed her a few times, been with her on social occasions, she is a very private person.

KERRY KENNEDY, CAROLINE KENNEDY'S COUSIN: You know what? She is a private person. And I don't know that it's so bad to have a private person in the Senate.

(END VIDEO CLIP)

NGUYEN: That's Caroline Kennedy's cousin speculating about how Massachusetts Senator Ted Kennedy might respond if his niece Caroline is picked to fill Hillary Clinton's New York Senate seat. Yesterday, though, sources confirmed the younger Kennedy is definitely interested in the position.

All right. So let talk about that for just a second, because Caroline Kennedy, the daughter of JFK and the last surviving member of his immediate family, but turning to the future, she may also be the next U.S. senator from New York. And many find that intriguing. But is she qualified for the spot?

CNN's Randi Kaye takes a closer look.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): Yes, she's the daughter of John F. Kennedy and a member of the Kennedy dynasty, but does that make Caroline Kennedy qualified to be senator?

HANK SHEINKOPF, WORKED ON BILL CLINTON'S REELECTION CAMPAIGN: Does she have name recognition? So does Jennifer Lopez.

KAYE: Hank Sheinkopf, who worked for Bill Clinton's reelection campaign, says the New York Senate seat is not about name recognition.

SHEINKOPF: A Senate seat is not a legacy place. We haven't had a Kennedy elected to office from New York state since 1964, and a lot of people would like to keep it that way.

KAYE: Caroline Kennedy's uncle, Robert Kennedy, served in the New York Senate until he was assassinated.

SHEINKOPF: The issue here isn't about white-collar people. It's about blue-collar people in places like Western New York and Long Island who are looking for economic relief and someone who will fight for them. Thus far, Caroline Kennedy doesn't have a record of fighting for anyone.

KAYE: The 51-year-old lawyer has co-authored books on the Bill of Rights and has been a champion of education reform and public schools. Her leadership roles are limited mainly to the arts. She hosts the Kennedy Center honors in Washington and served as honorary chairwoman of the American Ballet.

Her supporters have not been as outspoken as her detractors, but there are many.

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: She certainly has a lot of experience. Her whole family has been dedicated to public service.

LARRY SABATO, UNIVERSITY OF VIRGINIA: She is clearly a very intelligent, capable, interesting woman.

The minuses, that she doesn't have any political experience in the traditional sense. She's not served in the House of Representatives or the state legislature, but she has been involved, at least on the periphery.

KAYE: Is the periphery enough when other high-profile candidates are under consideration? Like Kennedy's ex-cousin-in-law, New York attorney general, Andrew Cuomo.

Kerry Kennedy is Caroline's cousin and Cuomo's ex-wife.

KERRY KENNEDY, CAROLINE KENNEDY'S COUSIN: She doesn't care about fame. She doesn't care about money. She doesn't care about power. What she really cares about is public service.

KAYE: Kennedy has yet to say publicly she wants the job. She's never enjoyed the spotlight, but threw herself into it when she endorsed Barack Obama.

CAROLINA KENNEDY, POSSIBLE SENATE CANDIDATE: Senator Obama offers the change we need.

KAYE (on camera): One thing that may play in Caroline Kennedy's favor, her ability to raise cash and lots of it.

All that charity fund-raising may pay off. She would have to run in 2010 for the last two years of the term, then again in 2012 for a new term. She'd need about $40 million for that.

(voice-over): If Kennedy does become New York's next senator, it will be a major political event.

SABATO: Look, it's the return of Camelot. You can see it already. We've already been talking about Obamalot, and now we'd have Camelot joined with Obamalot.

KAYE: And that's a lot.

Randi Kaye, CNN, New York.

(END VIDEOTAPE)

NGUYEN: Well, about two hours from now, the Federal Reserve is expected to announce another cut on a critical interest rate.

CNN's Christine Romans is at the business desk in New York.

And Christine, not much left to cut when we look at the numbers.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It will be a history-making afternoon quite probably, Betty. You're right.

We have interest rates right now, the Fed funds target, at 1 percent. The prime rate at 4 percent. The Fed could cut that Fed funds target.

If economists are right, they'll cut in half to a half a percent. I mean, that's just an historically low rate. It doesn't get much closer to free money than that. And the Fed also likely to talk about maybe some other things that it's doing and has been doing to try to shore up the economy and to stabilize the financial system.

We know among the things that they're probably talking about, right, are CPI numbers today. Inflation, a dramatic pullback there. Personal bankrupt up 30 percent. Two million jobs have been lost so far this year. Home foreclosures are accelerating.

There's an awful lot of important economic data. All of it pointing to a severe recession, and that's what the Fed is trying to grapple with.

It's already done so many thing, Betty, to calm the economy. It's been cutting interest rates for some time now. In fact, 4.25 percentage points its has cut interest rates since September of last year. It has injected hundreds of billions of dollars into the system. It has bought up short-term debt, it has bailed out financial firms.

We're now talking about quantitative easing. It sounds so wonky, but this is what the Fed is doing outside of its normal cutting interest rates to spur the economy, the other things that they're coming up with to try to spur the economy.

And a lot of folks think that one of those things could be maybe buying up more treasury securities so that they're driving down interest rates and driving down home loan rates. Maybe they can try to spark some activity in the economy by driving mortgage rates lower.

NGUYEN: So quantitative easing is what it's called. Something else that we should add to our vocabulary. It sound like we're going to be talking about this for a little while as well.

ROMANS: You know, I'm telling you, some of the things that we're talking about now, I mean, I couldn't have believed we'd be talking about it two years ago or three year ago. But I think that this financial crisis has blown up in people's living rooms and people want to know. I mean, what are all of these things that we're trying to do to try to get things back on track?

NGUYEN: Yes. We're forced to get a fast education on it all.

ROMANS: That right.

NGUYEN: Christine Romans, thank you for that.

Several more deaths -- we need to tell you about this -- are blamed on the heavy snow and ice that is blanketing the West and Midwest. So when will things thaw out? We are going to check in with meteorologist Chad Myers.

(COMMERCIAL BREAK)

(WEATHER REPORT)

NGUYEN: All right. Take a listen to this. A familiar sound. And it is, of course, a chainsaw that's reverberating across New England.

The region slowly continues to clean up from last week's ice storm. In Massachusetts, crews hope to have secondary roads cleared today, and electricity has been restored to all but 77,000 people. That's still a lot, though. Many of those are finding warmth in shelters.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We've had a lot of people coming in just asking for showers, to shave. To, you know, just kind of clean up. A spot to just get warm, get something warm to eat.

(END VIDEO CLIP)

NGUYEN: And because of the conditions, it may be January before some children actually go back to school. Talk about a winter break there.

Well, we can't get enough of this video: President Bush's close call. My goodness. All right. So what's to come of the journalist who threw those shoes? And how has the reaction been?

It's next in the NEWSROOM.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, "LATE SHOW WITH DAVID LETTERMAN": A bit of the press conference and he was over there for his farewell thing and the guys hobbing a -- it was pretty good, though. He -- I don't think Bush really has dodged anything like that, well, since the Vietnam War.

(END VIDEO CLIP)

NGUYEN: Oh, well, the now infamous shoe-throwing incident. Take another look at it. It just still amazes me every time I watch it. Well, the Associated Press is reporting that the shoe launcher has been transferred from police custody to the Iraqi military command in Baghdad for further investigation. Let me show you a picture of the accused journalist. There he is. According to the TV station he works for, they say the man is scheduled to face charges in Baghdad, central criminal court tomorrow. His arrest, though, has sparked protests all across the country. And his network, well, is calling for his release. We'll continue to follow this one for you.

While the president dodged the shoes without injury, his press secretary, Dana Perino, well, she landed a nice shiner. Apparently when President Bush jumped, a secret service agent knocked over the boom mike and that smacked her right in the face. She's a good sport, though, back at work and reacting on the president's behalf to the incident.

(BEGIN VIDEO CLIP) DANA PERINO, WHITE HOUSE PRESS SECRETARY: It was just a shoe. People express themselves in lots of different ways. Obviously he was very angry. I can't -- I can't tell you exactly what the shoe thrower was thinking, but I can tell you what the president thought was that he was fine. And he said immediately, you saw his reaction was, don't worry about it. It was OK.

(END VIDEO CLIP)

NGUYEN: And, Dana, a little makeup will cover that right up, my friend.

Well, the shoe video is quickly becoming a YouTube favorite. But should the incident be the focus of the president's trip to the region? One of our i-Reporters put it into perspective.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: As much as that scene of him getting the shoe thrown at him will be remembered in history, we should also take notice of what he did on his visit.

(END VIDEO CLIP)

NGUYEN: Tell us what you think about the shoe-throwing incident. Submit your i-Reports at cnn.com.

Well, police in Paris, they are still trying to figure out who put explosives in an upscale department store that was located right in the heart of the city. And shoppers were actually evacuated after getting a threatening letter. CNN's Jim Bittermann bring us up to date, joining us now live.

All right. How did this all go about, Jim?

JIM BITTERMANN, CNN CORRESPONDENT: Well, Betty, that letter came in this morning. It was in the morning mail at Agence France Presse, AFP, the big news agency. And basically it says there was a bomb planted in this Printemps store. It said, very specifically, the bomb was on the third floor in a toilet. And so police evacuated the store. And when they searched with sniffer dogs, they indeed found explosives.

However, the interior minister, who rushed to the scene, said that, in fact, it was really no risk to customers because there was no detonator that was associated with the explosive. There were five sticks of dynamite that the police took away.

Nonetheless, they're taking this very seriously because the letter also went on to say that if French troops are not withdrawn from Afghanistan by the end of February, that the people who posed this explosive device today would be back and next time there would be no warning. And presumably there would also be a detonator.

So it's being taken very seriously here, although the revolutionary group, it was called the Afghan Revolution Front that claimed credit for this this morning, in fact, has never been heard from before. And the interior minister said, they just don't know who's behind it.

Betty.

NGUYEN: All right, Jim Bittermann with the latest there. Thank you, Jim, for that.

Well, more than 4 million of you are expected to travel to Washington next month to see Barack Obama sworn in as the 44th president. And to help keep everyone safe, Sprint Nextel is working with federal and local authorities to make sure officials have the wireless resources and devices needed to stay in contact. Here's a clip of a news conference just last hour.

(BEGIN VIDEO CLIP)

BILL TOTH, VICE PRESIDENT, SPRINT NEXTEL: (INAUDIBLE) networks are expected to provide excellent voice, text messaging, push-to-talk and wireless broadband communications throughout the nation's capital area. Today I'm happy to share with you Sprint's network preparation for the inauguration, as well as discuss our past network experience and performance at similar large-scale events.

(END VIDEO CLIP)

NGUYEN: And if you're wondering, just 35 days left until the inauguration.

So with just that to go, President Bush's eight-year term is obviously winding down. And our senior political correspondent Candy Crowley has just come out of the Oval Office, where she's been conducting an exclusive exit interview with the president.

Very interested in what he has to say, Candy.

CANDY CROWLEY, CNN CORRESPONDENT: Well, you know, it was interesting because it really was a mix of thing because he is the outgoing president. So you want to ask about the past. And we did have an interesting discussion on the Iraq War and whether there were point where he worried that he'd made a mistake. He did say that there was a point when he thought the war was not winnable (ph). But you also have to talk a little, Betty, about what going on right now. And what's going on right now is talk about whether his administration is going to bail out the auto industry.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're considering all options.

CROWLEY: Is that a yes?

BUSH: Well, I've made it clear I'm concerned about two thing. One, the financial markets such that a disorganized bankruptcy could create enormous economic difficulty, further economic difficulties. And, you know, I feel a sense of obligation to my successor to make sure there is not a, you know, a huge economic crisis.

Look, we're in a crisis now. I mean we're in a huge recession. But I don't want to make it even worse. And, look, on the other hand I'm mindful of not putting good money after bad. So we're working through some options.

CROWLEY: So it sounds like you need some assurances from the auto industry to give them some sort of assistance?

BUSH: Well, we're just -- right, we're just working on options. What you don't want to do is spend a lot of taxpayers' money and then have the same old stuff happen again and again and again.

CROWLEY: And you now know you can't get it out of the existing money, that $25 billion stash, and probably will have to take it out of elsewhere?

BUSH: We're looking at all options.

CROWLEY: OK. When -- so how soon, do you think?

BUSH: Well, you know, we're told that the automobiles are, you know, teetering here or teetering there and, obviously, taking in their concerns and taking in the concerns of all the stakeholders and we'll trying to get this done in an expeditious way.

CROWLEY: But you can't be the president that oversees the collapse of the auto industry in the U.S.

BUSH: Well, what I am -- I, obviously, have made a decision to make sure the economy doesn't collapse. I've abandoned free-market principles to save the free-market system. And I think when people review what's taken place in the last six months, and put it all in one, in one, you know, in one package, they'll realize how significantly we have moved. And I'm so sorry we're having to do it. I'm not really happy about the fact that there have been excesses in the financial markets, which are affecting hard-working people and affecting their retirement accounts. Having said that, I'm very confident that with time the economy will come out and grow and people's wealth will return.

(END VIDEO CLIP)

CROWLEY: On another subject, we did talk just a little bit of politics, particularly about the president's brother Jeb, the former governor of Florida. There will be an opening for a U.S. Senate seat coming up in the next round of elections. I asked the president whether he has told his brother that he thinks he ought to run. And President Bush said, yes, he had advised his brother that he ought to run for U.S. Senate from Florida.

NGUYEN: Oh, good information there. All right, Candy. We are so looking forward to this and want to let you at home know that you can see this exclusive interview in its entirely this afternoon at 4:00 p.m. Eastern on "The Situation Room" with Wolf Blitzer. Investigator stay it was a huge Wall Street scam. Billions of dollars and an growing list of victims that you're sure to recognize. See for yourself, right here in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: All right. You are not going to believe this. A toddler in Beaumont, Texas, was found wandering inside -- I'm going to show you some video -- a discount dollar store at 3:00 in the morning. Look at this video right here. He had to cross a street to get there. Remember, just a toddler here. And you can see the surveillance tape of the four-year-old boy trying to first get through the door, which was locked, and then he was smart enough to try the next door, which opened. That triggering a silent alarm. Policemen then showed up to get him. And when they got there, he showed off the toys that he had found. Police say they found his parent at 11:00 this morning canvassing the neighborhood looking for him. So the big question is, what happened? How did he get out?

Well, in central Florida, investigators are finding more clues at the spot where the remain of a small child were found last week. The grandparent of Caylee Anthony asking for privacy until it's known whether the remains are those of the missing toddler. More now from reporter Karen Castillo with our affiliate WFTS.

(BEGIN VIDEOTAPE)

KAREN CASTILLO, CNN CORRESPONDENT, (voice over): When investigators found more bones in the woods, they decided it was time to slow done even more. They're methodically, carefully sifting through soil, leaves and branches in the large wooded area behind Caylee Anthony's home. And now they've invited more experts into the mix, including specialists in the area of insects and plants, to help determine what happened and how long the bones were here.

CAPT. ANGELO NIEVES, ORANGE CO., FLORIDA SHERIFF'S DEPARTMENT: This is a process that is going to go very slowly, very deliberately in order to make sure that nothing is left untouched, which is significant to the area of the find.

CASTILLO: Investigators say the skull found here is already in an FBI lab undergoing DNA analysis. An attorney for the Antony's says the family is waiting for that absolute confirmation and praying, even though all signs point that it's Caylee Anthony.

BRAD CONWAY, ATTORNEY FOR GEORGE & CINDY ANTHONY: The last six months have been the hardest six months of our lives and we understand that the ongoing investigation and prosecution of our daughter Casey will consume our lives with conflict.

CASTILLO: Casey Anthony's attorney showed up this weekend with his dream team of experts. Star forensic criminologist Henry Lee and others examined the home and now are anxiously awaiting their turn to look inside these woods.

(END VIDEOTAPE) NGUYEN: Well, Caylee Anthony's mother waited a month before reporting her daughter was missing. The 22-year-old woman now being held without bond at the Orange County, Florida, jail.

An Illinois legislative panel debates impeachment for Governor Rod Blagojevich. But meanwhile there are questions about whether his wife is also under scrutiny in the federal corruption probe. Let's get more from CNN's Drew Griffin of our special investigations unit.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT, (voice over): Patti Blagojevich looked like she was leaving town, or at least home, this morning. Spotted with her husband in tow, carrying a large red suitcase. The governor's wife, allegedly heard swearing on court-approved government wiretaps, may be feeling the heat as well. Earlier this year, the "Chicago Tribune" reported she, too, may be a target of U.S. prosecutors. Mrs. Blagojevich is a real estate agent who has earned hundreds of thousands of dollars in commissions, often selling properties owned by her husband's political supporters, fund-raisers or state contractors.

She has not been charged with any offense. But former Assistant U.S. Attorney Joel Bertocchi says there seems to be a never-ending list of possible targets in Chicago where the U.S. attorney's office is fighting a well-entrenched political machine.

JOEL BERTOCCHI, FORMER ASST. U.S. ATTORNEY: I've been referring to this investigation for the last several years as "operation everything" because it crosses all kinds of lines and all kinds of people.

GRIFFIN: The investigation dubbed "operation board games" by the federal prosecutor, Patrick Fitzgerald, systematically has been chipping away at the pay to play politics as usual in Illinois. Governor Blagojevich and his chief of staff, John Harris, are the 14th and 15th persons charged in the ever-expanding case. The biggest conviction to date has been Tony Rezko, the real estate dealer and fund-raiser who helped President-elect Obama purchase property in Chicago. Rezko also had a long working relationship with the governor's wife. The governor and his wife have said nothing publicly about the charges against him since his arrest.

GOV. ROD BLAGOJEVICH, (D) ILLINOIS: I will at the appropriate time.

GRIFFIN: Defense attorney conferring with Blagojevich says only prosecutors should expect a battle.

UNIDENTIFIED MALE: If I'm trying the case, there's going to be a fight.

GRIFFIN: Expected, says Joel Bertocchi, who says U.S. Attorney Patrick Fitzgerald has methodically tackled the Chicago machine and so far is winning. BERTOCCHI: As a matter of strategy, Pat Fitzgerald is very conscience of the fact of, you know, the old saying, if you're going to shoot at the king, you better kill him.

GRIFFIN: Blagojevich is charged with two count of solicitation of bribery and fraud, but it's expected much more will be added to the case when prosecutor seek an indictment.

Drew Griffin, CNN, Chicago.

(END VIDEOTAPE)

NGUYEN: Well, investigators say it was a huge Wall Street scam. Billions of dollars and a growing list of victims that you're sure going to recognize. Want to see for yourself who they are right here in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: Well, crews are still trying to get electricity back on for everyone in upstate New York. About 45,000 homes and businesses still do not have power. And that's down for a quarter million after the storm hit last week. More bad weather, though, expected to slam into the region tonight.

Talk about change. It is coming to the Energy Department. And we're not judge speaking of a new secretary. Cnnmoney.com's Poppy Harlow has our "Energy Fix" from New York.

What you talking about today, Poppy?

POPPY HARLOW, CNNMONEY.COM: All the changes that Obama says are ahead. Because when you think about the Energy Department, you probably think oil and gas and coal really at the top of the agenda. But the focus is actually nuclear weapons.

That's right. Currently the Energy Department spends about $15 billion of its $24 billion budget on maintaining nuclear stock pipes, cleaning up production site and dealing with non-proliferation issues. A new era, though, is coming. President-elect Barack Obama's choice of Steven Chu as the energy secretary is proof.

The announcement came late yesterday afternoon. The Nobel Prize winning physicist has been a vocal advocate for more alternative energy research. Chu believes a shift away from fossil fuels is really how we're going to combat global warming. If he is confirmed, Betty, look for the new Energy Department to make a big push into renewables, as Obama talked about so much on the campaign trail.

NGUYEN: Yes. You know the president-elect says that he's going to make energy policy a top priority. But with oil prices falling and a recession, won't it be difficult?

HARLOW: It's going to be very difficult. Oil prices are down again today. Around $44 a barrel. A different story than this summer. But Obama says he want to create 5 million clean energy jobs by investing $150 billion over the next 10 years. There's no question the weak economy, these falling oil prices, aren't going to make that difficult to fund and even difficult to justify. But Obama is not backing off. Take a listen.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA, (D) PRESIDENT-ELECT: This time has to be different. This time we cannot fail, nor can we be lulled into complacency simply because the price at the pump has, for now, gone down from $4 a gallon.

(END VIDEO CLIP)

HARLOW: Now researching and commercializing renewable energy technology, that's a main focus of Obama energy plan. That's exactly what his proposed energy secretary has been working on for the last couple of years at Lawrence Berkeley National Lab in California. Certainly a lot of work, though, ahead for that energy team.

Betty.

NGUYEN: Poppy Harlow, thank you so much for that.

Let's take a look at the numbers today. Put them up for you. Do we have them? There we go. The Dow up 105 point at this hour at 8,670. Not looking too bad. We'll continue to watch that for you.

And speaking of money, listen to this. Veteran Wall Street trader Bernard Madoff due in court in less than two hours. The hearing is related to bail. Last week, federal prosecutors charged Madoff with a massive $50 million fraud. Now he's accused of paying investors with cash that he got from other investors. The classic pyramid scheme, if will you. Clients included corporate executives, a United States senator and Hollywood celebrities. The alleged fraud came to light largely because of the global financial crisis. Prosecutors say Madoff basically ran out of cash.

Bernard Madoff once served at the chairman of Nasdaq, earning him clout. And that respect, in turn, earned him client who were rich and powerful. Here's CNN's Joe Johns.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT, (voice over): The roll call of investors who may have lost millions in the Bernie Madoff scandal reads like an American society a list. Movie director Steven Spielberg's charity. Billionaire publisher Mort Zuckerman. Fred Wilpon, the owner of the New York Mets. New Jersey Senator Frank Lautenberg's family foundation. Nobel Peace Prize winner Elie Wiesel's Foundation for Humidity.

And it's not like all the charities and foundations effected were throwing money at Madoff to get quick returns. The Jeht Foundation of New York technically had nothing to do with him at all. The problem was that the Levy-Church family that gave up to $30 million a year to the foundation used Madoff for their investment. After Madoff crashed, the foundation which supports justice issues and election reform decided over the weekend to shut down by the end of next month.

ROBERT CRANE, JEHT FOUNDATION CEO: I do view it as a tragedy. I think it's a tragedy, obviously, for the people that we support, the issues we care about and for the personal lives of everyone who's going to lose a job.

JOHNS: But it wasn't all about the high rollers. On "Good Morning America," Joan and Arnold Sinkin, who had saved close to $1 million from his job at a carpet salesman, gave it to Madoff and may have lost everything.

JOAN SINKIN: You can get in with Bernie Madoff. Wow, you're lucky. And it's just gone in one telephone call.

ARNOLD SINKIN: This is what they referred to as the golden years. We retire and you try and enjoy life. And then you get wiped out in 48 hours.

JOHNS: Another sign of the impact, over the weekend, four multimillion dollar condos, owned by Madoff investors in this Florida complex, went up for sale when Madoff went down.

Late Monday, a federal judge issue an order that may help investors get some of their money back through a fund that replaces missing stocks and securities. The total cost of the alleged fraud, in the billions of dollar.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

NGUYEN: And one of the most beloved board games of all-time turning 60 years old today. We'll tell you about the words that are not allowed.

(COMMERCIAL BREAK)

NGUYEN: Yes, not too long, in fact.

But in the meantime, Scrabble turning 60 years old today. Invented by an architect in New York. And now sold, get this, in 121 countries, in 29 languages. And there are tournaments all around the world, like this one just a few years back in Louisiana. Josh Levs is here with some fun facts about the most popular word game in history.

Are you a Scrabble player?

JOSH LEVS, CNN CORRESPONDENT: You know, I feel bad. I haven't played it in years. Have you?

NGUYEN: Not in years, but I love it.

LEVS: But apparently the rest of the world is playing it all the time.

NGUYEN: Yes, there are tournaments, apparently. LEVS: There is tournaments in all these different countries. Let me show you this web page for a second. Take a look at this. One is "Daily Telegraph," has put together all these different facts about Scrabble. Sixty facts for its 60th birthday. We've got a couple on a graphic for you.

Let's start off with this. Thirty thousand games are started every hour around the world. And if you compiled all the missing tiles that, you know, people have lost over the years, more than a million around the word. Highest single game score, for those of you who know Scrabble well enough to know what that means, 1,049, which is pretty impressive there.

All right. A couple more here, because this is particularly interesting. In the U.S., the Scrabble dictionary actually bans offensive words. But London's "Daily Telegraph" point out, that if you look at the championships, for example, that they have over there, there are no penalties for expletives.

NGUYEN: Hey, I'll just get any word I can get on that board, you know.

LEVS: I don't know if I can go beyond six letters in one word anyway.

But, look, happy birthday to Scrabble. Obviously, we all adore it, even if we don't get a chance to play it very often.

NGUYEN: In honor you should probably go and play a game tonight, right?

LEVS: OK. Maybe we'll break one out in the NEWSROOM right now.

NGUYEN: OK.

CNN NEWSROOM continue right now with Kyra Phillips.