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Winter Storm Warning from Midwest to Northeast; Obama Introducing New Cabinet Picks Today; Mark Felt Dies at 95; Pedestrian Bridge Collapsed at Atlanta's Botanical Gardens

Aired December 19, 2008 - 09:00   ET

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

ANNOUNCER: This is CNN Breaking News.
T.J. HOLMES, CNN ANCHOR: Hello, everybody. T.J. Holmes here in the CNN NEWSROOM. You see Ali Velshi joining me, my colleagues there, as well.

We have a plan. And expecting that plan any moment to hear it articulated by the president. The details. There is an auto bailout or a help out depending on how you'd like to say it. But they will be getting money and the help that they say they need. The embattled auto industry.

Embattled, why? They've been hemorrhaging money. They've been losing jobs.

Ali Velshi standing here with me now.

Ali, we got these details. This is what they needed.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes, T.J., and tell me when to stop talking when the president comes out.

HOLMES: All right.

VELSHI: But it looks like a $13.4 billion loan and then in February things go as planned, another $4 billion. The conditions of this will be limits on executive pay, that the government can look at the books of the auto companies including Chrysler, which, as you know, is a private company. Even we can't look at the books of Chrysler.

The government will be able to block any major transactions that the automakers commit to. They cannot pay new dividends during that time. And this is the interesting one. They need to bring their costs in line with those of non-U.S. automakers which operate in the United States by the end of the year.

Now there's an interesting caveat here. If the companies are not financially viable by the end of March, this money can be recalled by the government and repaid. The question, of course, is they're running out of money, T.J. What will they repay it with?

HOLMES: Well, that's perfect timing by you. The president stepping out. Let's listen in. GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: For years America's automakers have faced serious challenges, burdensome costs and a shrinking share of the market and declining profits.

In recent months the global financial crisis has made these challenges even more severe. Now some U.S. executives say that their companies are nearing collapse. And that the only way they can buy time to restructure is with help from the federal government.

It's a difficult situation that involves fundamental questions about the proper role of government. On the one hand government has a responsibility not to undermine the private enterprise system. On the other hand the government has a responsibility to safeguard the broader health and stability of our economy.

Addressing the challenges in the auto industry requires us to balance these two responsibilities. If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers.

Under ordinary economic circumstances, I would say this is the price that failed companies must pay. And I would not favor intervening to prevent the automakers from going out of business.

But these are not ordinary circumstances. In the midst of a financial crisis and a recession allowing the U.S. auto industry to collapse is not a responsible course of action. The question is how we can best give it a chance to succeed.

Some argue the wisest path -- wisest path is to allow the auto companies to reorganize through Chapter 11 provisions of our bankruptcy laws and provide federal loans to keep them operating while they try to restructure under the supervision of a bankruptcy court.

Given the current state of the auto industry and the economy, Chapter 11 is unlikely to work for American automakers at this time. American consumers understand why. If you hear that a car company is suddenly going into bankruptcy, you worry that parts and servicing will not be available, and you question the value of your warranty.

With consumers hesitant to buy new cars from struggling automakers, it would be more difficult for auto companies to recover. Additionally, the financial crisis brought the auto companies to the brink of bankruptcy much faster than they could have anticipated.

And they have not made the legal and financial preparations necessary to carry out an orderly bankruptcy proceeding that could lead to a successful restructuring. The convergence of these factors means there's too great a risk that bankruptcy now would lead to a disorderly liquidation of American auto companies.

My economic advisors believe that such a collapse would deal an unacceptably painful blow to hardworking Americans far beyond the auto industry. It would worsen a weak job market and exacerbate the financial crisis. It could send our suffering economy to a deeper and longer recession. And it would lead the next president to confront the demise of a major American industry in his first days of office. The more responsible option is to give the auto companies an incentive to restructure outside a bankruptcy and a brief window in which to do it.

And that is why my administration worked with Congress on the bill to provide automakers with loans to stave off bankruptcy while they develop plans for viability. The legislation earned bipartisan support from majorities in both Houses of Congress.

Unfortunately, despite extensive debate, an agreement that we should prevent disorderly bankruptcies in the industry, Congress was unable to get a bill to my desk before adjourning this year. This means the only way to avoid a collapse of the U.S. auto industry is for the executive branch to step in.

The American people want the auto companies to succeed. And so do I. So today I'm announcing that the federal government will grant loans to auto companies under conditions similar to those Congress considered last week.

These loans will provide help in two ways. First, they will give automakers three months to put in place plans to restructure into viable companies, which we believe they're capable of doing.

Second, if restructuring cannot be accomplished outside of bankruptcy, the loans will provide time for the companies to make the legal and financial preparations necessary for an orderly Chapter 11 process that offers a better prospect of long-term success and gives consumers confidence that they can -- can continue to buy American cars.

Because Congress failed to make funds available for these loans, the plan I'm announcing today will be drawn from the financial rescue package Congress approved earlier this fall. The terms of the loans will require auto companies to demonstrate how they would become viable.

You must pay back all their loans to the government and show that their firms can earn a profit and achieve a positive net worth. This restructuring will require meaningful concessions from all involved in the auto industry -- management, labor unions, creditors, bond holders, dealers and suppliers.

In particular, automakers must meet conditions that experts agree are necessary for long-term viability, including putting their retirement plans on a sustainable footing, persuading bond holders to convert their debt into capital the companies need to address immediate financial shortfalls, and making their compensation competitive with foreign automakers who have major operations in the United States.

If a company fails to come up with a viable plan by March 31st, it will be required to repay its federal loans. The automakers and unions must understand what is at stake and make hard decisions necessary to reform. These conditions send a clear message to everyone involved in the future of American automakers. The time to make hard decisions to become available is now. Or the only option will be bankruptcy.

The actions I'm announcing today represent a step that we wish were not necessary. But given the situation, it is the most effective and responsible way to address this challenge facing our nation by giving the auto companies a chance to restructure.

We will shield the American people from a harsh economic blow at a vulnerable time. And we will give American workers an opportunity to show the world once again they can meet challenges with ingenuity and determination and bounce back from tough times and emerge stronger than before.

Thank you.

HOLMES: President Bush. President Bush there at the White House essentially saying that he had no option. He had to do this. The administration had to tap into those TARP funds, funds in that $700 billion bailout package, and give to automakers since Congress couldn't approve a plan, but saying that it was not a responsible action to allow them the automakers to fail at this time given the tough economic times that the United States is going through right now and, essentially, the world economy, as well, going through right now.

We have our team of correspondents who have been on this story from the jump. Our Dana Bash who broke this story for us this morning. She's standing for us in D.C. Kate Bolduan at the White House for us today. Also, Ali Velshi, Christine Romans, part of our business team, joining us in New York.

Dana, I will start with you. Was there any really -- any question that they get the help? Have we just been waiting on the White House to work out the details? Or was -- behind the scenes, was there really never any question that they were going to have to do this?

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Never any question that they were going to have do this.

HOLMES: OK.

BASH: From -- from the beginning, you know, obviously, it was the White House that negotiated basically what they're doing right now with congressional Democrats. They were hoping to get it done through legislation. That didn't happen and now the White House is doing that.

But I think it -- it's important to sort of look at the big picture as to why the president had to come out and do this right now. And that is because of the fact that his fellow Republicans on Capitol Hill, many of them, particularly in the United States Senate, they blocked the very thing -- almost the thing that he is announcing right now. Obviously, there are some -- some details that are different, but for the most part, what the president announced, this short-term loan of about $15 billion, maybe $17 billion that the Obama administration would have to -- to push through the finish line, and with some of these conditions, this is what his fellow Republicans rejected on -- on Capitol Hill.

So this is what the president is doing right now. If you go back in time, it's what the Democrats asked him to do a very long time ago, which is to try to save the auto industry by using the money that was already passed for Wall Street.

The White House had resisted this for weeks and weeks and weeks. That's why they tried to push it through legislatively using another pot of money. That didn't work and that's why the president is here where he is.

It was also very interesting that he started his -- his talks, explaining why he does not think that orderly bankruptcy is the right thing for the auto industry right now and it was very clear, at least looking at the political tea leave, T.J., that that was a message to his fellow Republicans, many of whom said that's exactly what should happen.

The market should take hold and bankruptcy should be in place and these companies should work their way up and -- and that's something they really didn't want to do.

HOLMES: Yes, you talk about bankruptcy not being an option, but still, it could be one if you look at this bailout plan, if these companies do not come forward...

BASH: That's true.

HOLMES: ... and have a viable plan in three months, he said they're going to enter bankruptcy. So we might end up in that place anyway.

Let's turn over to Kate Bolduan now who's at the White House to give us a read from there. But, Kate, you can also give us a read from -- from Capitol Hill, as well, since you've covered that so often during this whole bailout plan.

So try to help us understand how will members of Congress, how have they've been taking this. Were they consulting with the White House to put this particular plan together? Because, you know, they had the power. They were really the ones to say we don't want this, the White House came back and said, well, we're going to do it anyway.

KATE BOLDUAN, CNN CORRESPONDENT: Yes, there's a bit of a ping- pong effect that's been going on. And we know, Dana and I, have both been reporting since -- since the -- the legislation failed in Congress, that both Democratic members of Congress, as well as Republicans, have been talking with the administration, with Henry Paulson, kind of pushing their plans, pushing what conditions they wanted to put on the money, and you see that the Bush administration now has put quite a few conditions on the money.

We did have hear from -- get a background briefing from senior administration officials here this morning who did point out that while the term sheets of these loans have maybe not technically been signed yet, they do say that the automakers are essentially in agreement with these loans.

So it looks as if things are moving forward and you hear something today as we have been talking about for a week now is the Bush administration, they say the focus is viability. That's the term that we heard from the very beginning from House Speaker Nancy Pelosi as well Democratic and Republican leaders.

And the question that we've always come back to them with this -- what do you mean by viability? Who's to -- who is to deem what the viable and what is not? Well, we did get a little bit of window into that today. It's not necessarily the car czar that we've been talking about, but senior administration officials say there will be a presidential designee that will be looking at this and looking at the viability aspect of these plans and of the restructuring.

That, for the Bush administration's part, until he leaves office will be Treasury Secretary Henry Paulson and then Barack Obama will step to put his presidential designee into place to continue with this process.

HOLMES: All right. Kate, and we will turn now to New York and pick up on your point about the word viability.

Our money team, Christine Romans, Ali Velshi, a big part of that team in New York for us now.

Christine, I'll start with you. Viability. What does it mean and who's defining it?

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, you know, I'm going to tell you something. It sounds a lot like the White House is telling these automakers that, look, you got three months to get your house in order and you're going to file for Chapter 11 and this is your last chance.

We're going to give you this money, $13.4 billion -- sorry, I'm hearing myself back here. $13.4 just to get them through in these low-interest loans for the foreseeable future. But -- you know the president not -- and Ali picked up on the same point. The president not necessarily ruling out bankruptcy.

The president very clearly saying, you know, this is a deadline of March 31st, 2009. If you can't pay, you know, you can't get to viability, you're -- you're going to have to pay the money back and then you're on your own, basically, right, Ali?

VELSHI: That's exactly what the president is saying. He sort of said that a little later in the game, but he said, very specifically, this is going to provide you time to make preparations, which means, if you've got a few months and you know that it's not getting better, if you're not reaching viability, if you know today and pretty much the carmakers have some sense of what the next three months is going to look like.

If you don't think you're going to come out of this, then you should organize financing so that your bankruptcy can be orderly. Remember, T.J., Christine and I have been making this point. Bankruptcy in this country, Chapter 11, means protection from your creditors. It's legal protection from your creditors. It doesn't necessarily mean you go out of business.

Chapter 7 means you're out of business. Now the automakers, particularly Ford -- I'm sorry, Chrysler and General Motors, have made the argument if they go into Chapter 11 people won't buy their cars, no one will lend them money and they'll be liquidated.

Remember that Ford is not part of this bailout. Ford is not receiving any money out of this $13.4 billion and the subsequent $4 billion that is coming in February. But Chrysler and General Motors are in danger of running out of money and if they weren't to get this or meet these obligations, they would -- it could trigger a domino effect which could end up coming back to Ford.

So it -- this is a Chrysler and a General Motors matter, but it may not be clear from this that General Motors -- Christine, what did they say they burn through? Close to $5 billion a month?

ROMANS: Oh yes. I mean, General Motors burns through a lot of money. They needed $4 billion just to make it to Christmas, $4 billion, and -- and you know they need like $12 billion -- $11-14 billion on hand just to pay all their bills all the time. They need a lot of cash around there and they're burning through a great deal of cash. So they really needed this infusion quickly.

You -- T.J., you talked about the viability. How do you define viability? They -- the White House very specifically defines viability as positive net present value taking into account all current and future costs and the fact that they can repay fully the government loan.

So the White House thinks specifically what -- what is viability and it's got to get there by the end of March.

HOLMES: And guys, are we -- I want to be clear here, before I let you two go. I'm going to get back to Dana Bash. But are they saying, the White House, they want to see a plan that shows they can be viable or they want to see that things are turning around just within the next three months? That's still seemed like...

VELSHI: No, they're talking about...

HOLMES: ... a quick window of time.

VELSHI: That definition that Christine gave you is actual viability, not a plan for viability. That seems to be the part about this plan that seems the most unusual.

HOLMES: Can they do that in three months, Ali?

VELSHI: And that is, how would you get there? And then they say, by the way, if they don't achieve that, the money has to be repaid. It'll be given back to the government. But if they burn through it all and they're not viable, how does that money come back?

HOLMES: All right. Viability. We're going to -- we're going to have to look this up...

VELSHI: Yes.

HOLMES: ... on Dictionary.com here in the studio.

VELSHI: Yes.

HOLMES: Let me get back to Dana Bash.

Dana, another big part of the story has been certainly about jobs and about workers and, of course, the union. The UAW had -- has been playing a big part in a lot of this. At least being out there and being vocal about what they want.

Will this make them happy? It still doesn't seem like it would give them a lot of security, if you will, because bankruptcy, still now, could be just three months down the road.

BASH: It could be, but I think one of the interesting things that the president did not mention but is in a fact sheet that we got from the White House and it was part of a call that we had with somebody from the administration this morning. And that is the issue of these workers.

You remember part of the reason that the last attempt at compromise blew up on Capitol Hill was over the UAW, the auto -- U.S. Auto Workers union, and whether or not they could come to an agreement to keep their wages at -- or make their wages on par with U.S. workers from Toyota and -- and Japanese automakers who are there in the U.S..

So what this particular piece of legislation, actually it's actually an agreement with the White House says, not legislation, but an agreement. Basically it says it is not -- the government's job to do this. So it encourages, encourages companies and the UAW to come to an agreement to bring wages down to, quote, unquote, "parody" by the end of 2009.

It encourages them to get rid of the jobs bank that we know has really sucks up a lot of money for -- for these auto companies. So it actually asks them and gives them targets to do things to deal with the wage issue and deal with issues with regard to labor. But it doesn't mandate it at all.

And I think that is going to make some Republicans not very happy on Capitol Hill. But again, what the administration says is that, from their perspective, it's not the government's job to dictate that. A little bit ironic since the government is dictating a lot when it comes to business here. HOLMES: A whole lot, Dana. Like you said, not everybody is going to be happy. Some Republicans not going to be happy. Some people that are happy right now that we know of are the automakers.

We're getting a statement right now from Chrysler putting one out and I love their statement, no kidding, says Chrysler, thanks the administration and treasury for their confidence, going on to say they're going to stay focused on the challenge in this initial injection of working capital to help bridge liquidity crisis in the industry and assist in helping to return Chrysler to profitability.

But that statement, the first one there, we are getting from one of the big three automakers, Chrysler, essentially saying thanks for the money.

We will turn now to see another gentleman who may be happy with this deal as well. Mike Green, with the local UAW in Lansing, Michigan.

Mike Green, thank you for being here. Thank you for hopping on the phone with us. You tell me, sir. Are you happy with what the -- with what you heard from the White House?

MIKE GREEN, PRES., UAW LOCAL 652, LANSING: Well, certainly we're happy. You know, this gives us a chance to look at some things we have -- the international union, I'm sure, is going to sit down and work this out. This tells me that the government has some faith in the American auto worker. There are some things that have to come along with it. We understand that and we have the wisdom to sit down and deal with what's gone there.

HOLMES: What did you hear that you didn't like? Maybe the part about it looks like three months only that the auto workers, or excuse me, the automakers have to get things turned around and we could end up back in bankruptcy.

GREEN: Well, I mean, the things that you don't know was the things that are attached to it. So, you know, it's hard to really pick it apart until you see what it is. And that's why I'm saying, I think we have the right people in place to sit down and do that.

I think one thing that's going to happen is -- we have, you know, people saying hey, I'd like to buy a new car, but the banks aren't loosening up money. And you know, the interest rates are still up. So -- I mean those are all things that needed to be in this package so people will start buying cars.

HOLMES: And we will see if that will happen. Again, like the president said, their bankruptcy just would not encourage people to buy vehicles. Nobody wants to buy from a bankrupt company.

And tell us, what do you believe, sir? Is this going to be enough of what the automakers need? Enough of what Chrysler and General Motors need right now to -- stay afloat? Some might say this just sounds like you're putting a band-aid on a bullet wound, even just to -- to stay afloat for a while. GREEN: Well, I think it's a lot better than what we had yesterday. I mean any way you look at it. You know I'm glad that this -- has been extended to us. I don't believe that the American auto worker will let them down and let's not forget, this is -- it's more than auto workers. This is middle class America and all the jobs that are attached to this.

And I think that the parties to be will sit down and put something together that I have faith in Ron Gettelfinger's what's good for one will be good for all.

HOLMES: All right. Mike Green, president of the UAW Local there in Lansing, Michigan.

Sir, thank you for your time. I'm sure we'll be talking to you and other members of the UAW down the road and hopefully this all works out for everybody.

Thank you so much, Mr. Green.

We want to remind our viewers if you're watching. We got the official word from the White House just a short time ago with the president announcing that, in fact, he will dip into those TARP funds and give a loan, short-term loans, to General Motors and also to Chrysler to help them possibly become viable over the next three months. But if they cannot reach that, they still will have to enter an orderly bankruptcy is what we heard.

Neal Boudette, Detroit bureau chief for the "Wall Street Journal," joining us on the phone.

Neal, I was talking to you not too long ago, a couple of weekends or so ago about the possibility of this plan. Is this enough of what GM and Chrysler need right now?

NEAL BOUDETTE, WSJ DETROIT BUREAU CHIEF: Well, it's enough to get some cheats to keep them in business, another couple of months, but it's not enough to fix them long-term. They're going to have to get to the end of March, meet this test of viability, by that the government says that they have to have a positive net value.

It's hard to understand at this point what exactly they mean by that. And -- but then they'll have to go through another test to get more money. The money they're getting today is not enough to fix either company permanently for the long-term.

So this is just a short-term fix and it really leaves the long- term question up to President Obama and the new Congress.

HOLMES: Well, Neal, it sounds like listening to you that we are going to end up, you and I, having this same conversation in about three months about the bankruptcy of General Motors and Chrysler.

BOUDETTE: You're -- you're right on there. It's -- definitely not enough to fix either company, but just enough to keep them going and yes, we're going to be back at the same point. I would bet that there'll probably be another round of hearings in Congress if Congress considers a -- another more permanent bailout bill. So yes, keep your calendar open for March.

HOLMES: All right. Well, you keep your calendar open as well. We'll probably calling you back. But one thing before we go here. What happens to Ford in this whole thing? They went back and they told Congress they could possibly afloat, make it through 2009. So are they just sitting on the sidelines and trying to make sure they have their ducks in a row and maybe they won't need money?

BOUDETTE: Well, they have about $20 billion in cash and then they have another $10 billion in a credit line. So they do have enough money to keep going if the recession is very deep and very long, they could be in trouble. But you know, if -- if the new government comes in, does a stimulus package, and things come back, you could see Ford skate by without having to turn to the government for help.

HOLMES: All right. Neal Boudette, again, the Detroit bureau chief of the "Wall Street Journal," sir, good to talk to you again. I'll see you in three months.

BOUDETTE: OK. Bye-bye.

HOLMES: All right.

And we are waiting -- five minutes away now, to see how Wall Street reacts to what we just heard. This announced auto rescue plan.

But overseas, meanwhile, investors worried about their own economies there. The Bank of Japan cutting a key interest rate to near zero percent today, pretty much reflecting what we saw the U.S. Federal Reserve do earlier in the week.

Also Tokyo stocks closed lower as well as Hong Kong's index. Seoul and Shanghai rose a bit. London, Paris and Frankfurt, they all falling in late morning trading.

So we will be talking a whole lot more about that auto bailout throughout the next couple of hours here in the CNN NEWSROOM.

Meanwhile, there's some weather to talk about right now. We've snow and ice to talk about, moving across a big chunk of the country and affecting your holiday travel plans. Don't you go anywhere.

ANNOUNCER: CNN NEWSROOM brought to you by...

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HOLMES: All right. Reynolds Wolf, we got a mess, if anybody is trying to get anywhere right now at around the mid-section of the country eastward?

(WEATHER REPORT)

HOLMES: All right. Reynolds Wolf, we appreciate you. We're going to check in with you again. A lot going on over there on those maps, if you will.

Well, of course, concerns about the fate of the auto industry sent the Dow down more to 200 points yesterday. Well, now that we just heard details about that rescue money that's on the way, our investors are going to be reacting today.

Susan Lisovicz has that for us in the New York Stock Exchange.

Susan, what are we going to see?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, we -- if we look at the futures, we're going to see a big surge in Ford and GM shares.

There is the opening bell, T.J.

In the premarket, GM shares were up 20 percent on word that Washington would indeed come through with an emergency bridge loan for just a few months. But they would cash, desperately -- that is the auto industry desperately needed.

Ford, we saw shares up 13 percent. And indeed, GM shares right now are up 21 percent. Ford shares are up 14 percent. The mere...

SUSAN LISOVICZ, CNN CORRESPONDENT: In the pre-market, GM shares were up 20 percent on word that Washington would indeed come through with an emergency bridge loan for just a few months. But there was cash, desperately. That is the auto industry desperately needed.

Ford, we saw shares up 13 percent indeed. Indeed, GM shares right now are up 21 percent. Ford shares are up 14 percent. The mere mention that, President Bush was set to make an announcement today sent those stocks, turned them around. And that has pushed the overall market higher as well as we've been reporting. The automakers will get nearly $13.5 billion from the $700 billion financial bailout fund. Another $4 billion will be made available in February.

We have a filing for Chapter 11 bankruptcy today. And no, it is not any of the big three. It is Polaroid. The company which invented instant photography. They said the filing was necessary because of a fraud investigation involving its parent company.

Meanwhile, KB Toys plans to begin liquidation sales today. The nation's largest mall-based toy retailer filed for bankruptcy last week. Software giant Oracle reporting lower quarterly earnings for the first time in years. Still the company managed to turn a profit of more than $1 billion. Oracle shares are up five percent.

Overall, we're seeing modest gains. The Dow right now up 76 points. The Nasdaq is doing a little better. It's up 1.5 percent. And oil is again falling, now trading $35 a barrel. That's helpful to companies like Delta which rang the opening bell to celebrate its merger with northwest. And of course, one of the reasons we saw consolidations was because of the exorbitant cost of fuel just a few months ago, T.J.

T.J. HOLMES, CNN ANCHOR: Just a few months ago. That was just a few months ago.

LISOVICZ: What a year.

HOLMES: What a year it has been. We are wrapping it up. Hopefully, it doesn't get too much crazier in the last -- these closing days. But we'll be seeing you a lot more throughout the day. Susan, we appreciate you.

LISOVICZ: Thank you.

HOLMES: Well, we got another day. So what does that mean? More nominations for Barack Obama. He is filling up that cabinet or his Christmas stockings some might say. This time around, secretary of transportation.

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HOLMES: We just heard our Reynolds Wolf. Telling us about the trouble mess we're going to see over the next several days. Everybody is bracing. Right now, the storm is really hitting a big chunk of the nation. We have winter storm warnings and advisories in effect from the Midwest to the northeast. Chicago getting hit and getting hit hard. That could mean flight delays at the city's two major airports. And of course with those two, Midway and O'Hare are delayed. It's going to trickle down to delays at other major airports around the country.

We also got heavy snow that started to fall in (INAUDIBLE) early today, but weather officials say northern Illinois could get up to 10 inches of sleet, freezing rain and snow. The advice, of course, and some of it common sense -- stay off the roads if you can, allow those snowplows out there to do their work.

Also in northern Indiana, ice and freezing rain making for dangerous driving. At least five people have been killed in weather related accidents across that state. And out west, Arizona. Well, the mountain communities there. Residents still digging out from a Wednesday night storm that dumped more than a foot of snow. We're going to bring back in our Reynolds Wolf.

Maybe get to some things you didn't get to talk about the last time we chatter with you. What -- who -- oh, go ahead. You want to say something? (CROSSTALK)

REYNOLDS WOLF, CNN METEOROLOGIST: Now, let's show you what else we have here. A couple of the airports. You see Philadelphia, Milwaukee, and Milwaukee closed for the time being. In Atlanta and then in Detroit, we have some issues. Chicago and O'Hare, you have a ground stop. That's in effect until 9:00 a.m. Central Time.

We have Susan Roesgen that is standing by, live.

Susan, we have been watching you outside all morning long, trying to deal with the cold and the muck. How are things going for you now?

SUSAN ROESGEN, CNN CORRESPONDENT: Well, my socks are wet now. You know, as we mentioned, it is a lot of slush and that could mean ice later. But right now, it is still just slushy. Traffic is about normal out here for O'Hare. They're saying, you know, minimal delays, but 300 cancellations, and mostly that's because passengers that we talked to said they are stranded because they can't make their connections. They can't get to Detroit. They can't get to Albany. They can't get to places east where the storm is worse than it is now. It's still snowing a little bit but not too bad.

WOLF: OK, Susan, bang up job as always. Thanks so much for your help, and stay warm.

All right, T.J., again as you can tell, it's going to be something that's going to affect a lot of people. People that happen to be maybe going to DFW in Dallas. You're going to have some problems there. All stemming from some issues. You have the major hubs like in Chicago. So what affects one airport, no question, it's going to trickle down and affect many others. It's going to be a big pain for a lot of travelers. Millions of Americans on this Friday.

HOLMES: Yes. And a lot of people. I know we are about a week away still from Christmas, but a lot of people traveling right now, trying to get back home going to cause all kinds of problems. Reynolds, we appreciate to talk to you. (INAUDIBLE).

All right. Well, Barack Obama, we've been seeing him a lot, and he's been talking a lot about, you know, his cabinet. However, he might have a little something to say right now about this auto bailout. He's chimed in a time or two about this throughout this whole process.

Our Brianna Keilar standing by for us right now, live, in Chicago.

Brianna, is he saying much about this just yet, about the administration -- the Bush administration going ahead and making this move to give somebody's auto company, the GM and the Chrysler, the money they need to stay afloat?

BRIANNA KEILAR, CNN GENERAL ASSIGNMENT CORRESPONDENT: We don't have reaction at this point from the transition government, T.J. We're trying to bring that to you, and I think they're trying to put it out as well. But, you know, just remember back November 10th when the president-elect visited President Bush at the White House.

And the headline that came out of that meeting was that Obama had brought up to President Bush his concern for the automakers and the need to do something about it. So there was some speculation about was this sort of a moment of contention between them. A lot of questions were asked about that meeting in terms of automakers.

But, you know, I think Obama has been talking a lot about what we've heard President Bush talk about, and what we've heard coming from the White House that you can't let the auto industry fail because it would have these repercussions across the greater economy. He actually -- Obama had been commending the White House on the recent efforts to try to work out a compromise with Congress in finding a way to pay for at least short-term assistance. We've also been hearing Barack Obama talk about accountability.

So you can see that sort of what the White House has been talking about, and what the transition government has been talking about. Not a whole lot of daylight between the two. And indeed, there's been communications between the two teams here on this plan. We don't know to what degree exactly, but at this point, again, we're waiting for reaction. But it seems to not be too far from what at least generally Barack Obama has been pushing for, T.J.

HOLMES: All right. But that's one topic to talk about. It's awfully timely. But we have been seeing him a lot this week. And he's coming out talking about new members of his team, new members of his cabinet. What are the latest announcements we have?

KEILAR: Yes. Barack Obama has come out every single day this week to announce new members of his team. Today is no different. He is expected to announce his pick for secretary of Labor. Congresswoman Hilda Solis, a Democrat from California.

She is actually serving her fourth term in the House of Representatives. The first Latina to be on the House, Energy and Commerce Committee. The first elected to the California state Senate back in 1994. And her record really on board with Barack Obama's in terms of, you know, taking laid off workers and transitioning them into green jobs.

She's been very, very critical of the Bush administration's labor policies. And she's also someone with a bit of a personal connection to the subject. You know, she's described herself as part of a union family. Both of her parents union members and immigrant workers.

T.J.?

HOLMES: All right. Brianna Keilar for us in Chicago. Waiting for those announcements. Brianna, we appreciate you.

We're also out of Illinois today. We could hear from the Illinois governor, Rod Blagojevich. The embattled governor of Illinois now -- he has suggested that he may make a statement to the people of his state today. The governor has been charged with corruption, been accused of corruption for allegedly trying to sell the Senate seat vacated by President-elect Barack Obama. State lawmakers had been investigating the possibility of impeachment. They're taking the day off of impeachment talks, however, but plans to get back to work on Monday.

He is the man that helped bring down a president. And for many years, only a handful of people knew what his name really was -- who he really was. Everybody else knew him as Deep Throat. Well, today, Deep Throat is dead.

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HOLMES: Mark Felt has died. You might not recognize that name. He went by another name -- Deep Throat. Felt revealed his true identity three years ago saying he knew that he did the right thing. Fredricka Whitfield now has more on the man who sent shock waves through Washington.

(BEGIN VIDEOTAPE)

FREDRICKA WHITFIELD, CNN CORRESPONDENT (voice-over): William Mark Felt could have been a footnote in the history of the FBI. Remembered as its associate director in the early '70s, except for one crucial thing. He was journalism's best kept secret.

He was "Deep Throat" as portrayed in the movie "All the President's Men."

UNIDENTIFIED ACTOR: It involves the entire U.S. Intelligence community -- FBI, CIA. Justice is incredible. Cover-up had little to do with Watergate. It was mainly to protect the cover operation.

WHITFIELD: Code name for the mysterious informant who leaked information about Watergate to "Washington Post" reporters' Bob Woodward and Carl Bernstein.

DAVID VON DREHLE, WASHINGTON POST: He gave them contacts, direction and encouragement when they needed it to keep this story alive at the time when the Nixon administration was desperately trying to cover it up.

BOB WOODWARD, WASHINGTON POST: Like all complicated relationships, he said, "Push me. I've been a street agent in the FBI and you don't get anywhere unless you push people like hell. So go ahead."

WHITFIELD: Felt's clues helped expose a cover up by the Nixon administration about the botched 1972 burglary at the National Democratic Committee headquarters in the Watergate Hotel.

UNIDENTIFIED MALE: He was careful to give us guidance. He didn't give us direct information from FBI files.

BEN BRADLEE, FORMER EXEC. EDITOR, WASHINGTON POST: He saw something wrong in the government and what should he have not. He couldn't really go to his superior. WHITFIELD: Deep Throat's identity had been the focus of speculation for more than 30 years. Even President Nixon and White House Council John Dean speculated about Felt on the infamous Watergate tapes.

JOHN DEAN, WHITE HOUSE COUNCIL: The only person that knows -- that is aware of it -- is Mark Felt, and we've talked about Mark Felt, and uh, I guess --

RICHARD NIXON, FORMER U.S. PRESIDENT: What does it do to him, though? Let's face it. You know, suppose that Felt comes out and unwraps the whole. What does it do to him?

WHITFIELD: Born August 17, 1913 in Twin Falls, Idaho, graduating from the University of Idaho and George Washington University law school, he joined the FBI in 1942. As a G-man, Felt hunted Nazi spies during World War II. He had a bag of counterintelligence tricks honed during his long career with the bureau.

In retrospect, some say clandestine meetings in a garage were not out of character, they were part of his game.

UNIDENTIFIED MALE: I appreciate you coming out like that.

WHITFIELD: It wasn't until he was 91, four years after a stroke, Felt revealed his secret. A California lawyer enlisted by Felt's daughter wrote a tell-all article for "Vanity Fair" magazine in 2005.

JOAN FELT, DAUGHTER OF FMR. FBI DEP. ASSOC. DIR.: We're all so proud of him, not only for his role in history but for that, for the character that he is.

STATEMENT FROM MARK FELT, JR.: We believe our father. William Mark Felt Sr. was an American hero. He went well above and beyond the call of duty at risk to himself to save this country from a horrible injustice.

WHITFIELD: Two former Nixon aides who served time and prison for the roles in the scandal, say Felt betrayed them.

CHUCK COLSON, FOUNDER, PRISON FELLOWSHIP: I talked to him often, and trusted him with very sensitive materialize so with the president. To think that he was out, going around in back allies at night looking for flower pots, passing information to someone is just so demeaning.

GORDON LIDDY, FORMER NIXON ASSISTANT: He was urged to do so by his family for the money. He was very reluctant to do so because he feels -- and correctly in my view, a sense of dishonor.

WHITFIELD: Some speculated that Felt resented being passed over by Nixon for the top role at the FBI following J. Edgar Hoover's death in 1972. Ironically, Felt's life was a paradox.

He was eventually convicted of authorizing unrelated illegal FBI break-ins himself. He was pardoned by President Ronald Reagan and never served any time in prison. While he spent his career serving several presidents --

ROBERT REDFORD, ACTOR AND DIRECTOR: Why he did it is certainly an interesting notion, but for me it's just a fundamental fact that he did it is what changed everything.

WHITFIELD: He'll be remembered for helping to bring down one commander in chief.

(END VIDEOTAPE)

HOLMES: We want to turn now to the "Washington Post" Carl Bernstein. One of those two reporters who of course wrote all these articles with the helped on information from Deep Throat.

Sir, let me ask you, you know, on a personal level, given what this man meant to your early career and given the secret you kept all these years and the place it has in history. Just what are your thoughts today, personally, to know that Deep Throat is gone?

CARL BERNSTEIN, JOURNALIST AND AUTHOR: Well, it's emotional. Bob and I talked about 1:00 this morning about it. We went to see him about three weeks ago. We knew that he was dying. It was a kind of closing of the circle. He was cogent during our meeting. He was really up for it and was expecting us. And it gave us a chance I think to really appreciate what a huge role he had played in helping this country at a moment of great peril.

HOLMES: And Carl, was he, no doubt, at peace with what he had done? And was he always at peace? Or did it have to come over the years, that he got more and more comfortable with what he had done?

BERNSTEIN: I can't be inside his head and give you a definitive answer. I think he had mixed feelings about his identity being revealed. You know, he had mixed feelings about what he did. But he knew it was the right thing.

Yes, it's true that he had been unhappy. He was passed over for J. Edgar Hoover's job. And at the same time, he recognized that there was a criminal presidency, a constitutional crisis in this country, and he had the courage, and he had the intelligence to say, I'm in a position that I won't stand by idly when I have information that might make it possible with these young reporters. If they're really out there getting the information and doing what they need to do to show the country what's happening here, I'll give them a hand. And that's what he did.

HOLMES: And one more thing here, Carl. You tell me how -- will history remember Mark Felt? And how should they remember Mark Felt?

BERNSTEIN: I think that he's going to be remembered as someone who did something heroic at a time when the country was in great danger. He didn't give us original information. He kept us on the path with information we had obtained elsewhere. He said, you've got it. You're going in the right direction. But it was crucial to our knowing that what we were doing and writing was right on the money, as it were. HOLMES: All right. Carl Bernstein, again, a piece of history you are, a living history as well, during that time for this country. But Mark Felt, Deep Throat dead now. Carl Bernstein, I appreciate you giving us some time and sharing with us on this day.

BERNSTEIN: Good to be with you.

HOLMES: Mark Felt, the man many know or most know, Deep Throat, dead at the age of 95.

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HOLMES: One person is dead and another 15 at least are hurt after a pedestrian bridge collapsed at Atlanta's Botanical Gardens. You're looking at pictures here. We're getting from one of our local affiliates. The Atlanta Botanical Garden sit in the middle of Piedmont Park, a very popular park here in the downtown, midtown area here of Atlanta. But we understand that at least one person is dead.

This pedestrian bridge, we don't know how it gave way. We understand that there's possibly some construction that was going on around it. But the botanical garden is very popular spot, tour groups, school field trips. A lot of visitors go in and out of there walking through those gardens. Really, a world renowned and beautiful place there at the Botanical Gardens here in Atlanta. But, however, a sad day. We'll work to get more details. But what we do know, right now, one person dead, at least 15 injured in the bridge collapsed at the Atlanta Botanical Gardens.

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HOLMES: President Bush handing out some cash today, in the billions, announcing a rescue plan for Chrysler and GM. A plan for the short term with an eye on the future of the industry.

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