Return to Transcripts main page
CNN Newsroom
Obama Meets with Congressional Leaders; Tensions Continue at Gaza Border; Obama Proposes Stimulus Package; Roland Burris determined to be senator from Illinois
Aired January 05, 2009 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: CNN NEWSROOM continues right now with this lady, Kyra Phillips. Have a great show.
KYRA PHILLIPS, HOST: Thanks, Tony.
(BEGIN VIDEO CLIP)
PHILLIPS (voice-over): Welcome to Washington. Now, how are you going to fix everything? The president-elect getting down to some multi-billion dollar brass tacks on the wounded economy.
As if there's not already enough on Barack Obama's plate, the fighting in Gaza looks like it's going to get worse before it gets better: Hamas promising deeper strikes; Israel, threatening more pain.
And a 9-year-old speed demon bravely working on a speedy recovery from cancer. His gracious fight shows us all how to get back on track.
(END VIDEO CLIP)
PHILLIPS: And hello, everyone. I'm Kyra Phillips, live at the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM. Let's get right to it this hour.
"I am the senator," says Roland Burris, as we wait to hear from him this hour. The former Illinois attorney general is getting ready to fly to Washington to try to claim the Senate seat once held by President-elect Barack Obama.
Now, when he shows up tomorrow, as the new Congress is gaveled to order, the scene could get ugly. Senate leaders have said that Burris as an appointee is tainted, because it was made by the embattled governor, Rod Blagojevich, who's accused of trying to sell the seat. They said Burris won't be seated.
Yesterday, Burris got a rousing sendoff at a Chicago church, and later he had this to say to CNN's Don Lemon.
(BEGIN VIDEO CLIP)
DON LEMON, CNN ANCHOR: Do you plan to take this to the very end? And do you see that this is legally possible for you to, in fact, become the senator of Illinois?
ROLAND BURRIS, ILLINOIS SENATE APPOINTEE: Don, I am the senator. I am the senator.
LEMON: OK.
BURRIS: And the next step is, is for the United States Senate to do its constitutional duty and not disenfranchise the 13 million people of Illinois and have us to be shorthanded with all these crises that are coming down around our state and around our nation. Illinois would not be fully represented in the Senate. That's the reason why I took this seat.
(END VIDEO CLIP)
PHILLIPS: Illinois politics, the drama continues. We're going to have live coverage of a Burris news conference scheduled for 1:30 Eastern Time. So stay with us.
And he doesn't take the oath for another couple of weeks, but the economy just won't wait. President-elect Barack Obama meeting with key lawmakers from both parties today to talk about his plan to reverse this recession.
Let's get started with Kate Bolduan. She's in Washington.
Hey, Kate.
KATE BOLDUAN, CNN CORRESPONDENT: Hey, there, Kyra.
President-elect Barack Obama is making the rounds today. He spent part of the morning on Capitol Hill. First up, meeting with House Speaker Nancy Pelosi, Obama saying he couldn't think of a better partner in his efforts to fix the economy. Listen here.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: The inauguration stand is being built in the background, but the reason we're here today is because the people's business can't wait. We've got an extraordinary economic challenge ahead of us. We're expecting a sobering job report at the end of the week.
The speaker and her staff have been extraordinarily helpful in working with our team so that we can shape an economic recovery and reinvestment plan that starts putting people back to work.
(END VIDEO CLIP)
BOLDUAN: Now, as Obama left that meeting, he was met by the media, of course, as well as people lining the hallways cheering, trying to get a glimpse of the next president. He wished some happy new year before heading off to his transition headquarters to meet with his economic team.
Now, he's back on Capitol Hill still today to meet with Senate Majority Leader Harry Reid, as well as take part in a sit-down with key lawmakers from both parties, both chambers. It's all about the economy today, Kyra. PHILLIPS: All right. We'll be following it. Thanks so much, Kate.
And you know anyone who'd make a good commerce secretary? That's the big question, because the Mexico governor, Bill Richardson, has withdrawn from the nomination.
The feds are looking into a company that won some state contracts in New Mexico after it gave money to the governor's causes. Richardson says that he and his administration haven't done anything improper, but he thinks that the investigation could delay his confirmation and be a drag on the important work ahead.
As the new president and Congress get ready to assume their duties, both major political parties are also getting new leaders. Live pictures now of a forum sponsored by Americans for Tax Reform, where six candidates for the chairmanship of the Republican National Committee have gathered. Among them, Chip Saltzman. The former Tennessee GOP chairman has got a lot of criticism for sending RNC members a CD with the controversial track, "Barack the Magic Negro."
On the Democratic side, Virginia Governor Tim Kaine apparently will become the new DNC chairman. Two party officials tell CNN that Kaine is President-elect Barack Obama's choice to succeed Howard Dean. He'll serve part-time until his term as governor is over in a year.
Well, now the fighting in Gaza. Both Israel and Hamas vowing to fight until their objectives are met. Here's the latest right now.
Hamas says that it will fire rockets deeper into Israel and threaten to kidnap Israeli soldiers. Israel's new message to the world: the aim of its military operation is to change that equation that favored Hamas.
Palestinian medical sources say that 530 people have been killed in the ten-day Israeli offensive, most of them militants, but also at least 100 women and children. Israel says three Israeli civilians and one soldier have been killed.
Diplomatic efforts to end the fighting are intensifying. French President Nicolas Sarkozy and a European Union delegation are due to hold talks in the region today.
Well, Israeli forces are pounding Gaza from the land, air and sea. And Hamas continues to fight back, on the ground and firing dozens of rockets into Israel today.
CNN's Paula Hancock joins us in Jerusalem. We'll have a live report from her in just a moment.
And the fighting in Gaza has deepened the suffering for more than 1 million people who call Gaza home. Today, a slight ray of hope. Israel did open at least one border crossing. But whether it will allow much needed medical supplies, food and other aid, remains in doubt.
CNN's Karl Penhaul is at the Rafa border crossing. He brings us more.
Hi, Karl.
KARL PENHAUL, CNN CORRESPONDENT: Kyra, the situation at the Rafa border crossing, certainly, yesterday, was very tense, very frustrating for both the humanitarian aid workers and even the truck drivers taking the aid through. That border remained firmly closed.
There was a little glimmer of hope today: a number of Palestinian wounded did come across, but this border is open only very intermittently, a few hours at time, if at best. Yesterday wasn't one of the days.
Let's take a look at some of the tension that was present there.
(BEGIN VIDEO CLIP)
(CHANTING)
(END VIDEO CLIP)
PENHAUL: Sorry? OK.
The situation, the -- the reason that they were giving today for not opening that border early -- and I do understand it that it was opened around 3 p.m. to a handful of Palestinian wounded across. But the reason the Egyptians were giving earlier on was that the Israelis were bombing in the border area. And in fact, later on this afternoon, there was a period there of several hours where the Israelis would get to dropping bombs only 400 or 500 yards across from here.
The Rafa crossing, of course, the Rafa area is an area known to have a network of tunnels underneath that Hamas militants have used in the past to smuggle in munitions and ammunition -- Kyra.
PHILLIPS: Karl Penhaul, obviously making it tremendously difficult to get aid to those that need it.
Paul Hancocks joining us now from Jerusalem for more on what's taking place on the Israeli side. You had a chance to hear a little bit about what Karl Penhaul was saying there on the border there. What's the -- what's the story from your side?
PAULA HANCOCKS, CNN CORRESPONDENT: Well, Kyra, I'm down on the Israeli-Gaza border. And certainly, since darkness has fallen here, we've seen an uptick in the military action.
We can hear consistent shelling into Gaza and also helicopters overhead. And every so often, there is a large explosion over Gaza itself. So the air strikes and the strikes from the ground are continuing here on day ten on the border.
And I said -- I spoke to a senior Israeli security official a little earlier on today. And he said that at this point the Israeli troops are surrounding Gaza City. And they, basically, cut Gaza in half to try and stop the militants from being able to move with ease and also being able to bring arms to those who need them.
They also said that they've taken tens of Hamas operatives into custody. So they've taken them to special camps that they've set up and have started to interrogate them to try and find out any information they can about where the rocket launchers are. Of course, this is the whole reason that Israel says it is going into Gaza to try and top these rockets.
But of course, at the same time, they haven't stopped the rockets. These are still continuing to be fired. At least 40 rockets landing in Israel this Monday.
Now, according to that senior official, he was saying that -- that most of the rocket launches are now based inside refugee camps or in the backyards of people's houses. And this is why some of the Israeli troops around Betanoon (ph), around Betalahiya (ph) in the north of the Gaza Strip are having to go into the outskirts and do house-by-house searches and the sort of urban fighting that Hamas would favor over the Israeli forces -- Kyra.
PHILLIPS: Paula Hancocks, thanks so much, live from the border there. We'll continue to check in with you and Karl Penhaul.
Meanwhile, perhaps no president since Franklin Roosevelt has faced such daunting problems as President-elect Barack Obama. Two of the most pressing: the economic crisis and the wars in Iraq and Afghanistan. Now, this conflict in Gaza.
Well, we want to hear from you. What should President-elect Barack Obama's top priority be after he is sworn in? The economy or the crisis in the Middle East? E-mail us: CNNnewsroom@CNN.com. We'll read some of your responses later in the hour.
The man who would be senator, Roland Burris, is getting set to head to Washington to try to fill the seat once held by Barack Obama, but he's got a big fight ahead of him. We're going to find out what Burris has to say in a live news conference at the half hour.
Plus, you're going to want to wish this guy a speedy recovery. He's got to whip this cancer thing so he can get back out there and smoke out those other racers.
(COMMERCIAL BREAK)
PHILLIPS: Medical scrutiny in the Bahamas. We could find out today what caused the sudden death of John Travolta's teenage son.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
EYAD NASSER, RED CROSS AID WORKER: The tears (ph) of the medical staff, the surgeons are extremely tired, because they are working around the clock. It's not easy to bring more stuff nowadays following the land operation of the Israeli forces, as Gaza was cut into two halves. And the staff from Rafa, from the south of Gaza, cannot get close to the north.
(END VIDEO CLIP)
PHILLIPS: A Red Cross worker there, confirming what we've been reporting. Gaza hospitals swamped with people wounded in the fighting between Hamas militants and Israeli troops.
For the most part, Israel has closed border crossings, preventing much-needed aid from getting into Gaza. Palestinian medical sources say that more than 530 people have been killed. Most are militants, but 100 of the victims are women and children.
Well, he tried to sell it to the American people in his radio address this weekend. Now President-elect Obama is trying to sell it to the congressional leaders: his plan for stimulating the economy. It involves some $300 billion in tax cuts; doubles renewable energy production; and includes spending to fix the nation's crumbling infrastructure. But will it work?
That's a question for our financial guru, Ali Velshi. He's actually in the middle of his CNN radio show there in New York. I've begged him to just step aside for a second. I hope we don't upset all your listeners, Ali.
ALI VELSHI, CNN CORRESPONDENT: No, they're in. They're in with us.
PHILLIPS: They're in with us?
VELSHI: They -- they want to talk about the same things we all want to talk about, and this is a big one. This is a big one.
PHILLIPS: Well, let's lay it out here...
VELSHI: Yes.
PHILLIPS: ... because with everything going on right now, that's one of the e-mail questions we've actually asked our viewers, Ali. You know, you've got the war in Iraq...
VELSHI: Yes.
PHILLIPS: ... the war in Afghanistan, the war now taking place in Gaza, and then the economy.
VELSHI: Yes.
PHILLIPS: And people out of jobs. It's the start of the new year.
VELSHI: Yes.
PHILLIPS: What should be the president's priority?
VELSHI: Well, the jobs that you just mentioned, that's actually the biggest deal. All of this other stuff, you and I have talked about this many times before, Kyra, this -- this economy got into the trouble it's because of housing. But fundamentally, people keep losing jobs, and people without jobs don't spend. And this economy based -- is based on people spending.
So the No. 1 thing the president has to do is encourage the creation of jobs. And that's where this becomes very dicey. Because some people say he can encourage it; others say government can create jobs.
So what they're doing is this $300 billion in tax cuts that Barack Obama has suddenly proposed is a bit of an about face. It's something that Republicans believe in, that says don't create jobs. The government doesn't create jobs. The government gives tax breaks to businesses. They take the money that they saved on paying taxes, and they expand their businesses. And that's what creates jobs.
So it's a totally different argument than you've heard from Barack Obama, definitely, in the campaign -- Kyra.
PHILLIPS: So you know, should we back up a little bit and just talk about how we got into this financial mess in the first place?
VELSHI: Sure.
PHILLIPS: And then I -- and then I have a question or two about what's taking place today with regard to the SEC basically having to defend its existence now.
VELSHI: Yes. Well, listen, the mess we got into, you know, you can blame lots of people. Fundamentally, our regulation of our financial services has just not kept up with the speed of development.
So I liken it to having a highway system that's designed for cars that drive 25 miles an hour, and now you've got cars that drive 100 miles per hour. We haven't fixed that.
The other thing, Kyra, and that's really important, and it's something my listeners are going to latch onto -- maybe not in a positive way -- the American dream got us here, the idea that there will always be more tomorrow. We will always make more money. And hence, we can continue to spend more and more and more.
And I think part of it is it was easy to get credit to finance that American dream. And that's what has helped us all get into it. So we as consumers are in debt. Our employers, the companies of America, are in debt. And our governments are in debt. We're all in one big debt mess, and we've got to pull ourselves out of this.
PHILLIPS: And in many ways, it didn't have to reach this point.
VELSHI: No.
PHILLIPS: If regulation -- if the regulation, the laws were carried out.
VELSHI: But the... PHILLIPS: And the FCC chairman did his job properly.
VELSHI: Right.
PHILLIPS: And there were lots of red flags, as you and I have talked about, for months and months and months. So it didn't have to get this bad.
VELSHI: It is very hard to go to Washington and find a financial regulator who actually thinks they're a regulator. That's the problem, Kyra. They're not there, necessarily, to regulate.
In fact, increasingly, the evidence is that, in many cases, many senior employees of these regulatory organizations like the SEC were there not to make waves. They were there to do the opposite.
This is the watchdog. These are the groups that America counts on to look out for them. And once again, we found -- we found it out with Enron and WorldCom and all of that years ago. And now we're finding it again. They were not protecting the interests of Americans.
So here I am, Kyra, telling people that they need to get into the market. They need to invest. They need to diversify. They have to beat inflation. And I have people telling me, "Why? Why? Because someone is going to take my money." And that's where the name of the book came: "Give Me back My Money" -- "Give Me My Money Back," because people think someone took their money. It's not really true, but that's how people feel.
PHILLIPS: So we're going to talk about that new book when?
VELSHI: We're going to talk about it tomorrow.
PHILLIPS: OK. Sounds good.
VELSHI: I'll join you all week. How about that?
PHILLIPS: Good. Because I'm going to raise those...
VELSHI: As long as you come visit me in this little room, I will come in and talk to you.
PHILLIPS: OK. Well, and it will raise those book sales. So people just go on -- what it is -- Amazon.com...
VELSHI: I would come -- I would come...
PHILLIPS: ... and order them by the dozens.
VELSHI: I would come and talk to you if there was nothing else involved.
PHILLIPS: I love you, Ali.
VELSHI: Kyra, good to talk to you. PHILLIPS: See you tomorrow.
VELSHI: Thank you for visiting with us, and we're going to take a quick break. I've got a lot of you...
PHILLIPS: Got to love it.
All right. This is just into CNN. As you know, we're waiting to hear from Roland Burris. He is supposed to speak this hour. The former Illinois attorney general is getting ready to fly to Washington to try and claim the Senate seat once held by President-elect Barack Obama. We've got a live shot right here.
But of course, as the new Congress is gaveled to order, there's an expectation that Senate leaders are going to say, "Forget about it. This appointment is tainted because it was made by Illinois Governor Rod Blagojevich, who's accused of trying to sell that seat."
Well, now, this is just coming to us from our senior congressional correspondent, Dana Bash. Apparently, an aide to the secretary of the Senate, Nancy Erickson, is telling Dana that this morning she rejected Roland Burris's certificate of appointment to the Senate.
The aide also says that Erickson rejected Burris' appointment because it does not conform with Rule Two of the standing rules of the Senate, which actually specifically says that the Illinois secretary of state must sign the certificate of election, along with the governor.
The Illinois secretary of state has not signed Burris' certificate; only Blagojevich has signed that certificate.
So Roland Burris coming forward here, saying, "I am the senator." And he's headed to Washington, expected to take that seat. Now we're finding out about this Rule Two of the standing rules of the Senate, which apparently says you have to have two signatures on that certificate of election, along with the governor. And that's the Illinois secretary of state, which apparently has not signed it.
So the drama continues. We'll continue to follow it. It will be interesting to see what Roland Burris says in that news conference. It will also be interesting to hear from other senators.
All right. Moving along. Snow, ice, rain. There's a lot of messy weather across the country. We're going to check in with our Chad Myers. He's going to tell us what's happening from coast to coast.
(COMMERCIAL BREAK)
PHILLIPS: Well, an American pathologist has flown to the Bahamas to help with today's autopsy of John Travolta's 16-year-old son. Jett Travolta died Friday after he apparently suffered a seizure. He had a history of them, by the way, and police say that he fell in the bathroom at the family vacation home in the Bahamas. Jett had Kawasaki Syndrome, which is a heart condition that primarily affects younger children. The family is working on funeral arrangements and hopes to return the body home to Florida by midweek.
IReporters touched by the Travolta family tragedy are sharing their own stories of loss. Like Danyell Ballard of Columbus, Georgia. She lost her 11-year-old son Christian Lowery (ph) to that genetic disease, cystic fibrosis, last year.
And Martha Payne of Clinton, Tennessee, feels a special connection to the Travoltas. She says her 16-year-old son Marcus died suddenly four years ago in a truck accident. She says talking to someone you trust during times of tragedy definitely helps out a lot.
And Peter Abate of Wilmington, North Carolina, wanted to tell us about his daughter, who died from lung cancer. She was 22 years old.
(BEGIN VIDEO CLIP)
PETER ABATE, IREPORTER: It's almost sometimes as if that part of your life wasn't real.
(END VIDEO CLIP)
PHILLIPS: And Peter says that there are misconceptions about lung cancer victims. He says his daughter, Jessica, was not a heavy smoker. She died very quickly, just 149 days after getting the disease.
You can share your stories, too. Just go to CNN.com/iReport.
Hostage negotiators talked a former South Carolina policeman into ending a standoff at a North Georgia motel today. Twenty-five-year- old David Dietz is accused of kidnapping his estranged wife, an infant and a teenage girl from West Columbia, South Carolina, Saturday while allegedly wearing a police uniform.
Dietz's SUV was spotted by Georgia police north of Atlanta Sunday night.
In addition to the kidnapping charges, he's as accused of firing shots at police and federal agents during the 13-hour standoff. No injuries were reported.
And eight people are dead after a helicopter carrying offshore oil-rig workers crashed near New Orleans. The chopper went down in the marshlands just after takeoff yesterday. One person is in critical condition.
The mother of one of the victims says that her son, an experienced oil rig worker, never got used to that flight.
(BEGIN VIDEO CLIP)
BARBARA BRYANT, MOTHER OF CRASH VICTIM: Thinking about him being in the marshes out there, and he didn't want to fly anyway. He just took the water survival course with his company, Shell (ph), the week before Christmas and said how terrified he was when he did that. So the thoughts in my mind are that he's out there, and he didn't make it.
(END VIDEO CLIP)
PHILLIPS: Well, federal investigators plan to search the marsh area by boat today for more clues to the cause of that crash.
Take your pick. Snow, ice, freezing rain and thunderstorms. A lot of messy stuff out there on the weather map, Chad Myers.
CHAD MYERS, CNN METEOROLOGIST: Do you want the left or do you want the right?
PHILLIPS: Yes. No kidding. Up, down, left, right.
MYERS: Do you want the -- do you want the bad news or do you want the bad news?
PHILLIPS: Give it to us all, my friend.
(WEATHER REPORT)
MYERS: Maybe a little bit of spring thaw in January. We'll see what happens in the spring.
PHILLIPS: Well, yes. No kidding. All right, Chad, thanks.
MYERS: You've got it.
PHILLIPS: Well, do you know anyone who would make a good commerce secretary? Because the job, apparently, is open now. New Mexico Governor Bill Richardson has actually withdrawn from the nomination, and he made a statement just a moment ago. Let's take a listen.
(BEGIN VIDEO CLIP)
GOV. BILL RICHARDSON (D), NEW MEXICO: As you all know, I have asked the president-elect not to move forward with my nomination at this time. I'm going to elaborate on my decision, but I want to make it clear that I will not discuss details of the CDR investigation.
However, I want to emphasize that I acted properly, and my administration acted appropriately, too. A fair and impartial review of the facts will bear that out.
The deal handled by the New Mexico Finance Authority with CDR was thoroughly scrutinized through a rigorous procurement process. I have always fully expected that my administration would be cleared of any wrongdoing and it would be clear that nothing improper took place.
Unfortunately, the ongoing CDR investigation would have forced an untenable delay in the confirmation process and, given the gravity of the economic situation the nation is facing, I could not in good conscience ask the president-elect and his administration to delay for one day the important work that needs to be done.
(END VIDEO CLIP)
PHILLIPS: Now, as he mentioned, the feds are looking into that company that won some of the state contracts in New Mexico after it gave money to the governor's causes.
Now Richardson, as you heard, says that he and his administration have not done anything improper. He thinks the investigation could delay the confirmation. That would be a drag on the important work ahead. That way -- that's why he is pulling his name out of the mix.
It will be interesting to see now who will be the new commerce secretary in the new administration.
Well, angry investors try to recoup some of their losses in the alleged fraud scheme run by Bernard Madoff. Some are even turning to eBay. We're going to actually hear from a Florida man who lost his life savings.
(COMMERCIAL BREAK)
PHILLIPS: Live to Roland Burris. He says he is going to be the senator in Illinois. Other senators say, no he's not. He's tainted.
Let's listen.
ROLAND BURRIS: Thirteen million people, with all the crises that we have in this state and in this nation, and Illinois is -- needs to have a full complement of representation and that's what I'm seeking to do.
(QUESTION)
Well, I'm hoping and praying that I will be seated.
UNIDENTIFIED REPORTER: Have you had contact with the Obama administration?
BURRIS: No, I have not. None whatsoever. My people try to reach out for them and -- (INAUDIBLE)
UNIDENTIFIED REPORTER: How do you feel about your supporters bringing raise race into this issue here?
BURRIS: You know, I cannot control my supporters. I have never in my life, in all of my years, I've been elected to office about anything about race. I've been elected four times in the state of Illinois.
And the great people of Illinois have seen the qualifications and the commitment that Roland Burris has. And race has never been a concern of mine. As a matter of fact, I have -- as a matter of fact, I have -- I am talking to the young lady...
(CROSSTALK) ...as a matter of fact, I have looked upon the state of Illinois as the only state in the nation. Think about this. That's elected four blacks statewide. Two United States senators and two constitutional officers. And now they have an appointed individual who is also black as a United States senator.
UNIDENTIFIED REPORTER: Who do you plan to meet with and do what you call these negotiations?
BURRIS: Well, I will be in touch with our senior Senator Dick Durbin, and hopefully he will have things outlined for me and set up there. And we'll proceed from there. I understand that he is supposed to have a meeting scheduled with me from Harry Reid, the majority leader. And we will see what takes place there.
(CROSSTALK)
UNIDENTIFIED REPORTER: This is scheduled for Wednesday?
BURRIS: Wednesday, that's correct.
UNIDENTIFIED REPORTER: You have been subpoenaed to appear before the house impeachment committee, as well.
BURRIS: And we're handling that, as well.
UNIDENTIFIED REPORTER: How are you going to do that?
BURRIS: Well, I am -- I am the magic man.
UNIDENTIFIED REPORTER: Are you traveling to Springfield?
BURRIS: On Thursday, if we can.
UNIDENTIFIED REPORTER: On Thursday, but not on Wednesday?
BURRIS: We can -- I'm a United States senator. They cannot stop me from doing my senatorial duties.
(CROSSTALK)
UNIDENTIFIED REPORTER: What's your plan tomorrow morning? What are you going to do? Have you even negotiated with --
BURRIS: No, well, we'll go there and see what transpires, Jack (ph). You know that. We'll present ourselves to be seated. And then we'll take it from there.
UNIDENTIFIED REPORTER: Is it true you will not run in 2010? Is that a deal that you will not run --
BURRIS: Huh? No, I haven't heard that. (UNINTELLIGIBLE)
(CROSSTALK)
Well, that decision has not been made. Let me get in here and get seated and get my Senate legs under me and begin to tackle the problems. And we'll decide that later on.
UNIDENTIFIED REPORTER: Would you be willing to make that offer as a condition of gaining your seat?
BURRIS: I can't negotiate in the press.
UNIDENTIFIED REPORTER: The secretary of the Senate this morning received your paperwork, but didn't formally accept it because it is not complete. Is that the beginning of their efforts to unseat you? Are you just bothered by that?
BURRIS: No, I'm not bothered by that because the appointment is legal. What don't you all understand? What has been done here is legal. That's legal. I am the junior senator from Illinois and I wish my colleagues in the press would recognize that. All the drama, I guess it keeps you all in a job, is that right now?
UNIDENTIFIED REPORTER: Have you heard from the governor lately?
BURRIS: No, I have not.
UNIDENTIFIED REPORTER: You have not talked to the governor in the last two days?
BURRIS: No, I have -- what do you understand by, no, I am not.
UNIDENTIFIED REPORTER: Why not?
BURRIS: I don't have any intentions -- I don't have any intention to.
UNIDENTIFIED REPORTER: Tomorrow morning, if you are turned away at the door, what happens right after that?
BURRIS: Well, my lawyers will take it from there and we'll see what happens.
UNIDENTIFIED REPORTER: If you have any opportunity to meet with Senate Judiciary (INAUDIBLE). How are you going to sell yourself? What are you doing to say to them?
BURRIS: I'm going to sell myself the same way I've sold myself to the people of Illinois. I have represented them for 20 years in this great state. I am a solution to the problem.
UNIDENTIFIED REPORTER: How do you separate yourself from Rod Blagojevich?
BURRIS: Why should I separate myself from Rod Blagojevich?
(INAUDIBLE)
And, and? Do you separate the people when they elect you? No, I don't have to separate myself from Rod Blagojevich. He carried out his duties, and he filled the vacancy as according to law. Isn't that correct? Isn't that what the statute says? That the governor shall appoint a person to fill the vacancy. It didn't say anything about being tainted or being associated with or being -- this is all politics and theatre. But I am the junior senator according to every law book in the nation.
UNIDENTIFIED REPORTER: Mr. Burris, there are so many people who have talked against you being in the Senate, why is it so important for you...
BURRIS: How many -- let so many people talked for me sitting in the Senate, too, so that's a wash.
UNIDENTIFIED REPORTER: But why would you want to be associated with the governor? I mean he is tainted...
BURRIS: Am I tainted?
UNIDENTIFIED REPORTER: Well, but he did appoint you?
BURRIS: So. He signed some bills. Are those bills he signed illegal?
UNIDENTIFIED REPORTER: We don't know.
BURRIS: What do you mean, you don't know? You don't want to know the answer because it keeps you working.
UNIDENTIFIED REPORTER: Roland, when you accepted this position last week, did you expect this kind of spectacle to take place?
BURRIS: Well, I figured I'd have two people, especially Jack Connedy (ph) to come and talk with me, but I didn't expect all this type of theatre.
No, I didn't expect all this. I expected that my qualifications, my commitment to the people of Illinois, that that would be the best choice the governor could make because I can hit the ground running. I can go in and begin to just learn the procedures and then be able to go to work with the people of Illinois.
(CROSSTALK)
UNIDENTIFIED REPORTER: Because of this, Illinois become the laughing stock of the nation? Does that bother you at all?
BURRIS: That's because of all the media stir.
UNIDENTIFIED REPORTER: What do you rate your chances tomorrow of being seated?
BURRIS: Well, we'll see.
UNIDENTIFIED REPORTER: Fifty? What do you think?
BURRIS: I don't want to put a rating -- I don't want to put a ratring on that. We will see.
UNIDENTIFIED REPORTER: You do expect tomorrow --
BURRIS: I am going there to be seated. I am the junior senator from the state of Illinois. That's all I can say.
UNIDENTIFIED REPORTER: But you haven't been sworn in yet.
BURRIS: Well, I look to be sworn in, but I am the senator.
UNIDENTIFIED REPORTER: What do you expect to testify to the impeachment panel on Thursday?
BURRIS: I'll tell them what happened. We sent them an affidavit, the lawyer from the governor's office contacted me and we did a couple things in between. That's the situation.
I'm sorry -- I feel I am a solution to the problem for the people of Illinois. That's what I feel.
UNIDENTIFIED REPORTER: Some people wonder why with all the speculation, why you would even bother to take the seat and why not turn it down like Danny Davidson. Who said there's too much baggage around this seat?
BURRIS: Because of my commitment. I will say this again. Because of my commitment to the people of the state of Illinois, I have served them for 16 years in the elected office and I have an opportunity to serve them again. And I will certainly seek to do that.
UNIDENTIFIED REPORTER: Is it serving your own ego at all to take this spot?
BURRIS: I don't even -- (INAUDIBLE) respond to that.
UNIDENTIFIED REPORTER: Roland, how are your behind the scenes negotiations between you, Dick Durbin, Reid, and the Obama administration --
BURRIS: I -- I'm just -- I'll touch base with Durbin a couple days ago and I look forward to touching base with him or my staff will with his staff as we proceed to Washington this evening.
UNIDENTIFIED REPORTER: What do you plan to do tomorrow once you are turned away? What do you plan on doing during...
BURRIS: We'll have to see. We'll have to see.
UNIDENTIFIED REPORTER: Nobody from the Obama administration has talked to you or contacted you?
BURRIS: That's correct. That's correct.
UNIDENTIFIED REPORTER: Are you angry with Jesse White for refusing to sign... BURRIS: Jesse is my friend, Mike, you know that. I'm not angry with the secretary of state. He's a great public servant. And there's no -- I'm not angry with anybody. As a matter of fact, I'm happy. I'm enjoying this on behalf of the people of Illinois, yes.
UNIDENTIFIED REPORTER: Two more questions.
BURRIS: I do not negotiate in the press.
UNIDENTIFIED REPORTER: You don't negotiate with press, but are you negotiating with anybody?
BURRIS: Well, I will sit down and talk to Mr. Reid. And tell him I'm here to take my seat (ph).
UNIDENTIFIED REPORTER: You have not had any contact yet?
BURRIS: No. Thank you all so -- thank you all very much. And God bless you. Thank you all for showing up. I feel good.
PHILLIPS: He feels good, all right! He feels pretty confident, too, that he's the senator of Illinois.
I tell you what, this story just gets better and better. I know it is like a competition. We always thought Louisiana politics was so exciting. I tell you, Illinois politics becoming just as exciting now.
You heard Roland Burris there, he says he is the Illinois senator despite what so many other people are saying. I mean, this just came across to us, once again, from congressional correspondent Dana Bash. She said look, there's an aid coming forward from or to the secretary of the Senate, that Nancy Ericson, telling CNN this morning that she actually rejected Roland Burris' certificate of appointment to the Senate.
Here it is, actually, exactly what it states. And as you can see on the bottom of that certificate, there has to be two signatures. The secretary of the state and the governor has to sign the certificate of appointment. But we are being told is that that certificate was not signed by the secretary of state for the state of Illinois. That only governor Rod Blagojevich signed that certificate.
So, here en lies the confusion here. You've got Roland Burris saying I am the senator, according to law, I am the senator. That all of this is politics and theatre that's taking place. The media is making it into something that it isn't. He is the senator. He's going to Washington. He's going to do his job.
However, over on the other hand, we are being told that the secretary of state for Illinois did not sign that certificate and he cannot become the senator when only the governor has signed that certificate.
So, what's going to happen? That'll be the next press or news conference story that we break as this drama continues to unfold. So, we will -- and he also came forward and said, look, I'm not tainted either.
I have done nothing wrong. It doesn't matter Rod Blagojevich has appointed me because that's what he was supposed to do. And I'm taking the Senate seat. So, it will be interesting to monitor.
Meanwhile, Bernard Madoff is back in federal court today. Right now, there's no word on why he was ushered to court from his New York apartment where he is under home detention on Capitol Hill (UNINTELLIGIBLE) as the main branches, of course, with the head of the Securities Exchange Commission in the hot seat right now.
Members of a house panel are holding a hearing next hour on Madoff's alleged $50-billion investment fraud scheme. Members want to know why the SEC didn't detect that scheme.
Larry Leif says that he lost $8 million through Madoff and his family and friends were wiped out as well. He joins us now from Riviera Beach, Florida.
Larry, no doubt, this is an extremely tough time for you because from what I understand, since the '80s, you had been trusting in Madoff. You had been investing your money; that's how you got to $8 million.
In any way, shape or form, did you think there was a problem with Madoff once you started investing with him?
LARRY LEIF, MADOFF INVESTOR: No, I did not. And you know, I have been investing with Mr. Madoff since the '80s, but I have owned two companies. And the proceeds of the companies all went into my Madoff account along with my entire retirement. And I must say that whatever he did, he executed it perfectly.
PHILLIPS: So how did you get connected to him in the first place? Was it through your work? Did somebody recommend him?
LEIF: Well, it was through my first company. We had a pension and profit sharing plan, which started when I was about 20, 21, which was about 40 years ago. But we didn't start with Madoff right away, but as the years went on, one of my ex-bosses became an ex-partner was a friend of his and he started taking the pension and profit sharing money and filtering it down to Mr. Madoff.
PHILLIPS: So, Larry, as you invested in him, invested with him for so many years, did you actually, as you looked at your portfolio, did you, every month, every week see that you were making money and you felt good about your portfolio?
LEIF: Well, you know, it was a very different type of investing. At the time, I thought it was very smart. We didn't maintain a portfolio stocks more than, let's say, 60 days maximum.
Basically, what he would do, he would take the positions of 30 to 35 stocks and he'd buy a put and sell a call on the index that made up -- the stocks that made up the index. And it seemed pretty easy. And the only thing I couldn't figure out was when he pushed the button, but other than that, it was very transparent in most ways.
See, the real problem here is that how does a man generate this kind of paper trade confirms, statements, IRS 1099s, year after year after year without one person catching it? How did the IRS match up the gross proceeds on my tax returns versus what Mr. Madoff gave them. Or did Mr. Madoff never report it to the IRS?
Where were the checks and balances both with the IRS, the SEC, the United States government, and plus, the firm himself. He had 125 employees, I understand.
PHILLIPS: Yes. It's extremely frustrating when you wonder where were all the laws, the regulations over our financial institution. (UNINTELLIGIBLE) You mentioned the IRS, you see folks getting hammered for a few thousand dollars here and there, and they really struggle.
And this guy makes off, you know, with just multi-million dollars.
Final question. Your solution, what do you want to see happen here? Because obviously, this is completely changed your life and your whole future as you are going forward. So, is there anything that will make you feel better at all or seek justice or some sort of peace of mind?
LEIF: Yes, thank you for the opportunity.
First of all, please understand that I represent the face of the average Madoff victim. I'm not the rich and famous, I'm not the wealthy, I just took my life and trusted it with one man.
We are not asking for a bailout like AIG and GM and Ford. We are not asking for free money. We are not asking for loans, but we're asking for is to give us what we are entitled to.
I think the legislative part of our government has to sit down with the SIPC and explain to them that they must loosen their rules and get the victims their money as quick as possible.
PHILLIPS: Yes, you should.
LEIF: Secondly, we have paid taxes, or I, myself, have paid income taxes on what they say are fictitious profits for decades. So maybe there ought to be some special legislation for Madoff victims that they can go back and file amended tax returns, not just for three years, but maybe for six years, or maybe for ten years.
If those two things are enacted, I think most Madoff victims, like myself, the average person, would be very happy.
And there's one other issue that's very, very large. And that's what the press has been calling the feeder funds. There must be something done, also, to the individual investor in these feeder fund, because these feeder funds are not just made up of the rich and famous, they are made up of common, every day people.
PHILLIPS: Sure, people like you, who have lost millions of dollars and your entire life savings.
Larry, I tell you what, we going -- we've got to head on to a break, but we are going to, of course, monitor the hearings that taking place on Capitol Hill. I know you are going to be watching them as well. We would like to bring you back to see what you think about the outcome of those hearings, if you don't mind.
LEIF: That would be wonderful.
PHILLIPS: Larry Leif, appreciate it so much.
LEIF: Have a great day.
PHILLIPS: All right.
All right, well, as I just mentioned, let's move ahead. There we go. We are going to hear from Harold Copus, he's the former FBI agent that investigated these types of scams. He's going to join, give us his feelings on what is taking place now on the Hill. And if indeed, it is too late for any sort of major changes within the SEC on this front. Hopefully in the future though, big changes will be made with regard to laws and regulation.
Also, straight ahead, a 9-year-old racing champion facing his biggest challenge off the track. Tyler Luttrull is making a pit stop in the CNN NEWSROOM.
We'll tell you why.
(COMMERCIAL BREAK)
PHILLIPS: Well, Tyler Luttrull has a need for speed. The 9- year-old zips around the track in his minicar sometimes as fast as 80 miles an hour.
While, it takes guts to go that fast, his biggest battle is off the track. Last summer he was diagnosed with a brain tumor and he's undergone surgery and chemotherapy. And he's not letting any of that slow him down.
Tyler and his dad, Jay, join me now live from Denver.
Great to see you both.
Hi, Tyler.
TYLER LUTTRULL, 9-YEAR-OLD CAR RACER: Hi.
PHILLIPS: Hey, look, I am pretty impressed with your record, my friend. Looking at all your wins, looking at how fast you go. You have moved into a car with gears. What is it about racing that you love so much?
LUTTRULL: Going fast.
(LAUGHTER)
PHILLIPS: So you really do have the need for speed?
LUTTRULL: Yes.
PHILLIPS: So what does it feel like to be in that car and go that fast? Describe it to me. What's going through your mind?
LUTTRULL: I can't really explain that.
PHILLIPS: Well, how fast do you go?
LUTTRULL: Well, I haven't got up to 89 miles an hour yet.
PHILLIPS: But that's your goal?
LUTTRULL: Yes.
PHILLIPS: All right. Well, let me ask you, tell me, how did you find out that you had a brain tumor? You were not feeling so well for a while, right? Can you tell me what happened?
LUTTRULL: July 31st, I was throwing up for no reason. And then afterwards, I was going to eat cotton candy and that's how we found my brain tumor.
PHILLIPS: Oh, my gosh. And Dad, that must have been so hard. You probably do not forget that moment.
JAY LUTTRULL, TYLER'S FATHER: Yes. It was pretty tough. It was July 17th is when we did the MRI, and they found the tumor the size of a golf ball in the back of his head. And they operated on him four days later. And they removed that.
We finished radiation and we are doing chemotherapy right now. So...
PHILLIPS: And. Go ahead --
J. LUTTRULL: The chemotherapy will run through the end of the summer. So, we're hoping to get back out racing, if we can catch a few races towards the end of the year.
PHILLIPS: Well, that, I am sure that's exactly what will happen. And I know that your son has inspired you on so many levels. What is it? Is it his strength? Is it his humility; is it getting in that car and not giving up? What is it about Tyler that just really fills your heart?
J. LUTTRULL: It's just a quiet -- quiet determination. You know, he speaks real soft. You know, he works real hard on his cars. He participates, he's active and he just works real hard. He has the respect of all the people he races against. He's just -- he's just real easy to love. PHILLIPS: Well, Tyler, tell me what your advice would be to other kids. There's a lot of kids your age that are getting diagnosed with brain tumors and some of them, you know, aren't handling it as well as you are. What would be your advice to other kids?
LUTTRULL: My advice would be just hang in there and just try to keep going.
PHILLIPS: Just like you. And I got to get in a plug for your company that you started, Tyler. I understand tylersoap.com.
Did you actually bring a bottle of this with you?
LUTTRULL: Yep.
PHILLIPS: Can you explain to me what this is and who it helps and how you came up with the idea?
LUTTRULL: Well, we came up with the idea because we were at the hospital and my dad, dad and mom like washed their hands constantly, and their hands got so dry that we invented this, this soap.
PHILLIPS: Well, that is wonderful because your parents have to make sure they don't have any germs, right, to make sure you stay healthy. So, wash and use that lotion and I know that some of the money goes towards you and also goes towards other kids who have cancer as well, right?
LUTTRULL: Right.
PHILLIPS: Well, tell you what, as I look at that picture of you suited up next to that car, you look better than any race car driver there at Nascar. So, we'll be waiting to see you competing in Daytona 500.
Sound good?
LUTTRULL: Yep.
PHILLIPS: All right. There it is right there. Look at little Tyler. Let me tell you what, he gets in that car, he goes fast and he's not going to give up. We will follow Tyler.
Jay, thanks so much for joining us. You've got an amazing little boy.
J. LUTTRULL: Thank you.
PHILLIPS: All right, guys. Bye, Tyler.
LUTTRULL: Bye.
PHILLIPS: Buy some of that lotion, too. It supports him and other kids.
Well, can you imagine what the first day of school must have been like for Obama and the girls today? Well, new town, new school, new teachers and friends. And everyone knows who your parents are.
We going to take a closer look, next hour.
(COMMERCIAL BREAK)
PHILLIPS: Well, they might be twins but on paper, they look nothing alike. A Michigan mom delivered her first twin at 11:51 p.m. New Year's Eve. Baby No. 2 was ready for his close-up at 12:17 a.m. New Year's Day.
So the twin boys were born on different days in different months in different years. So close, yet so far.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I'm hearing people like three, two, one. I'm like we got a new year's baby.
UNIDENTIFIED FEMALE: It was a shock. I was just happy they were here and they were healthy.
(END VIDEO CLIP)
PHILLIPS: Family and hospital staff said that both boys were healthy and weighed more than five pounds.
The next hour of CNN NEWSROOM starts right now.
