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President-Elect Obama Tries to Convince Congress on Bailout Funds; Hillary Clinton Faces Senate Questioners; No Answers in Pilot Faked-Death Case; Is Israel Using Burn Agent?

Aired January 13, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Well, it is Tuesday, January 13th, one week until the inauguration of Barack Obama. Washington owns the top stories in the CNN NEWSROOM.
The president-elect heads for lunch on Capitol Hill today. He will try to convince Congress to swallow his plan for the remaining bailout billions. A short distance away, Senator Hillary Clinton, the woman Barack Obama beat in the primaries, hopes to nail down a job as secretary of state. Good morning, everyone, I'm Tony Harris, and you are in the CNN NEWSROOM.

First lady, senator, presidential candidate, she has been on the world stage for almost two decades. Today, it is hers to own. Hillary Clinton is in front of her Senate colleagues right now, asking them to confirm her as Barack Obama's secretary of state.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), SECRETARY OF STATE APPOINTEE: America cannot solve the most pressing problems on our own, and the world cannot solve them without America. The best way to advance America's interests in this reducing global threats and seizing global opportunities is to design and implement global solutions. That isn't a philosophical point. This is our reality.

(END VIDEO CLIP)

HARRIS: CNN Foreign Affairs Correspondent Jill Dougherty on Capitol Hill.

Jill, good morning.

The opening statements are behind us now, and now we get to the question and answer session.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Right, just beginning. And in fact, we have Bob Corker, Republican of Tennessee, who is leading off. They're just beginning with some questions.

You know, so far, it's been very smooth, you'd have to say, with Hillary Clinton going around the world, literally, ticking off all of the issues that she is looking at. Of course, mentioning that that is the policy that is the Obama policy, led by the president. And you would have to say that the theme that she is punching has been smart power -- diplomacy in the forefront, backed up by military power. And, you know, about the only note -- and it was very politely- delivered note -- came from Dick Lugar, and that was concerning the issue, the elephant in the room, as we have been referring to it, Bill Clinton, his foundation, his connections internationally, and what kind of problem, conflict of interest, could that present for a new secretary of state.

So let's listen to Lugar and hear what he said about that.

(BEGIN VIDEO CLIP)

SEN. RICHARD LUGAR (R), INDIANA: But the Clinton Foundation exists as a temptation for any foreign entity or government that believes it can curry favor through a donation. It also sets up potential deception problems with any action taken by the secretary of state in relation to foreign givers or their countries.

(END VIDEO CLIP)

DOUGHERTY: So what Lugar is proposing, and this is new, he wants the Clinton Foundation to foreswear any new foreign contributions.

Now, they already had worked out a deal where the State Department and the officials there, ethics officials, would vet, look at any type of connections. There would be reports issued by the Clinton people about donations. But what Lugar is saying is, go further, eliminate any possibility of anything looking very compromising.

We'll have to see what the Clinton say on that.

So back to questioning here, but so far, Hillary Clinton, looking very much in her element, talking about issues, micro finance, and other issues.

HARRIS: OK. Jill Dougherty for us.

Jill, appreciate it. Thank you.

You know, there are a total of five Senate confirmation hearings today for cabinet nominees. Here is a quick at some of the others.

Peter Orszag is in front of the Senate Budget Committee right now. He is Barack Obama's choice for federal budget director.

The Education Committee is hearing from Arne Duncan. He is currently superintendent of Chicago schools.

And Shawn Donovan is nominated for housing secretary. He would lead HUD, an agency dealing with the mortgage meltdown and housing crisis.

For novices of the confirmation process, a brief look at how it goes down.

The president submits a nomination in writing to the Senate. The Senate committee with jurisdiction over the position considers the nomination. The nomination then goes to the Senate floor for consideration and a vote. The Senate can confirm the nomination, reject it, or do absolutely nothing.

President-elect Barack Obama making his case for spending another $350 billion of your tax dollars. He heads to Capitol Hill next hour to meet with Senate Democrats on the remaining bailout money, the so- called TARP. The president-elect says things will be different going forward.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: My commitment is that we are going to fundamentally change some of the practices in using this next phase of the program. We're going to focus on housing and foreclosures. We're going to focus on small businesses. We're going to focus on what's required to make sure that credit is flowing to consumers and businesses. To create jobs in the United States.

And this is going to be part and parcel of a broader financial strategy that involves strengthening the regulations on Wall Street, and in our financial sector and our banking sector, so that we're not seeing the kinds of systemic crises that led us into this situation in the first place.

(END VIDEO CLIP)

HARRIS: The House Financial Services Committee holds a hearing in just a few hours on the bailout money. A bill by Chairman Barney Frank would tighten restrictions and designate part of the money for foreclosure relief.

In a statement, Frank says, "We should not allow our disappointment at the Bush administration's poor handling of the TARP program to prevent the Obama administration from using the funds in more appropriate ways. I hope the House will pass a bill this week that sets forth the conditions we believe are necessary to assure that the public gets the full benefit of these funds."

More now on the hearing on the billions of dollars of bailout money. Live now to Capitol Hill and Congressional Correspondent Brianna Keilar.

And Brianna, the president-elect is not only meeting with congressional Democrats today, he is also meeting with congressional Republicans, as well.

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Yes. And at some time, we're not sure, but it's going to be in the future. That's what we've heard from sources here on the Hill and from the transition team. But not only is Barack Obama going to be here, having this lunch with Democrats today, he's also been working the phone lines.

I mean, Tony, if you can sort of imagine getting a phone call, and someone says, "The president-elect is on the phone for you," obviously it's not quite as surprising if you're a senator. But certainly, this is something that has surprised Democratic senators.

They have been getting these phone calls, basically these appeals from Barack Obama to make this second $350 billion available. And why are they getting these phone calls? Well, it's a tough sell, because Democrats and Republicans really say they feel burned by how this first allotment of $350 billion was spent by the Treasury Department.

You know, in general, the refrain you hear from all of them is they don't feel like there was enough accounting for where the money went, and then Democrats, who Barack Obama really has to win over, they say they feel homeowners facing foreclosure were really left in the lurch. Some of them also say they don't think that that first $350 billion going to those financial institutions actually freed up any credit. So that's a concern for them.

And why is this the time for the sell? Well, it's because now that this request has come in for the second $350 billion from President Bush, but at the request of President-elect Obama, there's going to be votes in the House and the Senate on whether to approve those funds. And as you can see, if it ended up in a situation where Congress says, you know, we're not going to approve those funds, it is possible that one of the first orders of business when President-elect Obama becomes President Obama, would be to veto a bill.

I mean, can you imagine, Tony, what an awkward situation that would be for him to have to veto a bill as his first task, a bill that came from a Democratic-led Congress? This is something, obviously, they want to avoid.

HARRIS: Absolutely.

OK. Brianna Keilar on Capitol Hill for us.

Brianna, thank you.

You know, some Republicans in Congress say not so fast. They are questioning whether there is really a need to release the remaining bailout money. Congressman James Inhofe of Oklahoma say lawmakers should think twice before approving the last half of the bailout.

(BEGIN VIDEO CLIP)

REP. JAMES INHOFE (R), OKLAHOMA: Now, if you are a reasonable person, and were to assume that a major event in the financial world has prompted the negotiations that led to the decision to release the second $350 billion, you would be wrong. The true reason Congress may be asked to release the second $350 billion, it's just politics. And it's a hot potato, and nobody wants it, but they all want the money. And that's what we're faced with, with now.

(END VIDEO CLIP)

HARRIS: OK. Congressman Inhofe will be our guest, live, next hour, noon Eastern, right here in the CNN NEWSROOM.

If it he could live to see the day, what would Martin Luther King, Jr. have to say about the election? We will follow the dream in Memphis.

(COMMERCIAL BREAK)

HARRIS: Israeli tanks rolling into Gaza City from two directions 18 days into its assault on the Palestinian territory. Israel's military reporting several clashes between its troops and Hamas fighters.

U.N. Secretary-General Ban Ki-moon calling on both sides to just stop the fighting. The U.N. chief is heading to the region for a series of talks that start tomorrow.

The latest numbers from Palestinian medical sources say more than 900 people have been killed, almost half of them women and children. Another 4,000 wounded.

Inside the attack zone. New evidence that Israel may be firing the chemical white phosphorous into densely-populated Gaza. An Israeli defense spokesman categorically denied it recently on CNN, but now the Israelis are more hesitant about answering the question.

Our Ben Wedeman reports.

(BEGIN VIDEOTAPE)

BEN WEDEMAN, CNN JERUSALEM CORRESPONDENT (voice-over): Is Israel firing white phosphorous into Gaza? Human Rights Watch says yes and is backed up by munitions experts. And this, say Palestinian doctors, is the result.

Dr. Nafiz Abu Sha'aban says he's been treating burns for 27 years, but says he's never seen anything like these. He says most of the severe burn patients have been sent to Egypt. But because of the fighting, this man, Adil (ph), can't get out.

DR. NAFIZ ABU SHA'ABAN, BURN UNIT CHIEF, SHIFA HOSPITAL: He was brought to us last night with severe burns on the back, the face, both lower limbs. It's about 47 persons to this (ph) area. This resulted from some sort of bombs, bombs which contain phosphorous, as we said before.

Because his burns are not usual burns. These are severe, very deep burns, with (INAUDIBLE).

WEDEMAN: White phosphorous is known to burn flesh down to the bone. It's designed to provide illumination or a smokescreen in battle. Under an international protocol ratified by Israel in 1995, such incendiary weapons are allowed when "not specifically designed to cause burn injury to persons."

MARK ELLIS, INTERNATIONAL BAR ASSOCIATION: There's not a, per se, prohibition against using white phosphorous in conflict. But there are significant restrictions as to when it's used and how it's to be used.

For instance, it is illegal to use white phosphorous against any personnel, not only civilians, but even legal combatants. So it cannot be directed at personnel. So you're limited to having it directed at military targets.

WEDEMAN: International law says incendiary weapons cannot be used where there is a concentration of civilians, and Gaza is one of the most densely-populated places on earth.

This house north of Gaza City was hit by something Sunday. "It's been burning since 1:00 in the morning," Monid Hamada (ph) tells our cameraman around noon. "If you move it with your feet, it reignites. You can't put it out with water, only with sand." This matches the properties of white phosphorous, which ignites on contact with air.

Last week, an Israeli officials told CNN, "I can tell you with certainty that white phosphorous is absolutely not being used."

Now Israeli officials have this response to questions on its use...

MAJ. AVITAL LEIBOVITCH, ISRAELI ARMY SPOKESWOMAN: Any munition that Israel is using is with accordance to the international law. Israel does not specify times of munition, nor types of operations that it's conducting.

WEDEMAN (on camera): The precise extent to which Israel is using white phosphorous is unclear, but the use of such a controversial weapon in the crowded and confined conditions of Gaza is bound to raise questions, questions Israel is, for now, hesitant to answer.

Ben Wedeman, CNN, Jerusalem.

(END VIDEOTAPE)

HARRIS: Well, is your 401(k) slipping away? Personal Finance Editor Gerri Willis to the rescue, just ahead.

(COMMERCIAL BREAK)

HARRIS: And very quickly, we want to get you back now to the confirmation hearing for secretary of state nominee Hillary Clinton.

Richard Lugar, as you see here on the right of your screen, the ranking member of the Senate Foreign Relations Committee, is questioning Senator Clinton right now.

Let's listen in.

(JOINED IN PROGRESS)

LUGAR: ... the president himself to eradicate the situation. But when Senator Obama first came to the committee, we traveled to Russia and Ukraine, saw additional MANPAD missiles, and, in fact, a whole acreage of weapons that were very dangerous, although not weapons of mass destruction. And we secured Senate assistance in passing the Proliferation Security Initiative and other bills. I bring all this to your attention because, despite all this legislative effort, there has been no translation of this into increased financial or leadership commitment in the State Department. And budget constraints, problems of organization in the department, but nevertheless, all of this became almost individual diplomacy, rather than a concerted effort by our country. And the problem now is that we have found that there are dangerous pathogens and disease repositories and other countries in need of WMD proliferation prevention assistance.

Can you describe, even in these early days in your study of this, what sort of effort under your leadership the State Department may be able to offer to begin to do those things which are clearly diplomatic? That is, to open up conversations with other countries, to work with the Defense Department, of course, the Department of Energy, others who have interest in this, but in which thus far, the State Department has been either a reluctant or an almost nonexistent partner?

CLINTON: Well, Senator Lugar, I don't think there is a more important issue that confronts the incoming administration. And your leadership and inspiration with respect to arms control and especially nonproliferation and the efforts to contain and destroy loose nukes and other material, and now moving into the pathogen area, which is particularly dangerous, is a great example to me of what we should be doing.

It won't surprise you to know that in my transition review of the department, it became clear that the arms control and nonproliferation functions had been significantly degraded. There was a difference of opinion within this current administration as to whether such an effort is worthwhile, whether it pays off, whether it's just, you know, spinning wheels.

You know, I heard someone in the administration previously say, well, you know, we don't need these agreements, because, you know, good people don't need them, and bad people won't follow them. And so the infrastructure for being able to back you up when you went to Albania was severely undermined.

We intend to build it even more robustly. I am seeking arms control and nonproliferation experts to come back into the department. This is one of the passionate concerns of the president-elect, who I think under your tutelage, understands very much the threats that we face. So I believe, Senator, that you will find a very willing and active partner in these efforts.

I remember when I met with you, looking at the pictures that you have displayed in your conference rooms of all of the various trips you've made looking for this material, seeing it finally destroyed, and you know better than I how much more work lies ahead. And unfortunately, the bad guys are always at it. They're always going to be testing us. So to that end, we will have a very strong commitment to the START treaty negotiations.

We want to get out of the box early. We want Russia to know that we are serious. I take to heart what the chairman said about trying to reduce our numbers even lower.

This incoming president, like all presidents, has been committed to the end of nuclear weapons, as long as we can be assured that we have adequate deterrents, and that we are protected going forward. So we're going to enter it with that frame of mind, which is quite a change.

In the nonproliferation area, I want to do everything I can, working with you, working with former Senator Nunn, to see what authorities we need, how we can better beef them up, how we can better fund them. Use this occasion, even, to invite some of the technical experts and others who have left the government over the last eight years, to reenlist, because it is true that you could make the case that bad actors won't follow agreements.

You can look at North Korea, you can look at Iran. But I think those should be the exception and not the rule. There should be a rules-based framework for arms control and nonproliferation that, if the United States, once again, leads and constructs that architecture, we will be in a stronger position to isolate the bad actors.

So I hope, Senator, that you will take my remarks as the invitation they're meant to be, for collaboration, not just consultation, as we rebuild this function, staff it, and fund it appropriately.

HARRIS: Well, there you have it. There is Senator Clinton and the ranking member of the Senate Foreign Relations Committee, Richard Lugar, talking about nuclear proliferation and other weapons of mass destruction.

In her opening statement, Senator Clinton, the secretary of state nominee Clinton, said the U.S. must engage other nations to reduce nuclear weapons, reduce the development of new weapons of mass destruction. She went on to say that she will seek better relations with Russia, and also added that America must curb the spread and use of weapons of mass destruction.

What we're going to do is just sort of dip in from time to time and listen to some of the questions and the answers from the secretary of state nominee, Hillary Clinton.

If it you would like to watch the confirmation live right now, we invite you to go to CNN.com/live. There you can watch the confirmation hearing before the Senate Foreign Relations Committee.

You know, if you're like me, you feel pretty helpless watching your 401(k) shrink. Retirement savings have lost a collective $1 trillion in value since the market's peaked in October of 2007. But there are some smart moves that you can make now to help prepare your 401(k).

Our personal finance editor, Gerri Willis, to the rescue.

Gerri, good to see you. Good morning.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey.

HARRIS: Oh, you're from the big set this morning. Where do we get started, Gerri?

WILLIS: Yes. We're changing it up for you.

HARRIS: OK. Appreciate it.

WILLIS: We don't want you to get bored out there. Right. Exactly.

Hey, Tony, good to see you.

You know, there is some good news out there in that tumultuous economy, and that is that mutual funds that have shut their doors long ago to investors, they're reopening. Now, if companies generally close their funds before they get too big, unmanageable, it's hard to run a lot of money. But with stock prices falling and investors dropping by the wayside, funds are looking for new investors.

Now, some of these are really good funds. Make sure the reopened fund hasn't changed its portfolio manager that got the performance in the first place, or its investment strategy. If so, you have to throw out past performance data.

Check out the new manager's record to determine if the direction the fund is going fits your needs. And then you want to check the fees, of course, which I always say, because that's the hidden cost.

Here are, though, some of Morningstar's top picks for reopened funds. Check these out.

If you're looking for funds, Sequoia Fund, Fidelity Contrafund, T. Rowe Price Midcap growth fund. And, of course, you're trying to find things that fit the mix in your 401(k), you're trying to get that asset allocation the way it should be.

HARRIS: Hey, Gerri, why does it make sense -- and I know you've got some thoughts on this -- to convert to a Roth IRA right now?

WILLIS: Well, I get questions in my e-mail inbox all the time about conversion.

HARRIS: Yes.

WILLIS: People want to do this because then they don't have to pay taxes in retirement on their retirement savings. It's a good deal.

If it you want to do this, the time to act is now, because as I just said, the tax that you'll take from the conversion will likely be smaller because prices will be lower. The advantages here, tax-free, penalty-free withdrawals from contributions as long as you are over 59.5 and have had the account for at least five years.

There are, though, income limitations. And remember, you have to take a tax hit when you do the conversion, but it will be less now than if you had done it a couple of years ago. So make sure you can cover that tab without having to tap into any other savings -- Tony.

HARRIS: Hey, what should do you if your employer -- and this is starting to happen more and more -- cuts the 401(k) match?

WILLIS: It's a long list, isn't it? It's FedEx, Motorola, General Motors. All these companies cutting their 401(k) matches, and that's what we sell these things on; right?

HARRIS: Exactly.

WILLIS: 401(k)s are good because they give you free money, and they are more than expected to cut that match this year.

Now, if this happens, you've got to continue contributing, because now your money is all the more important; right? But there are circumstances when you might reduce your contribution or stop altogether.

If your employer cuts their contribution, if you're facing a job loss, you can't pay your monthly bills, keep in mind here that when companies cut their matches, that doesn't mean it will be permanent. In fact, the last time this happened and we saw a rash of companies cutting their 401(k) matches, those companies came right back in when things got better and reinstated the match. Some even paid more. So you don't want to willy-nilly stop contributing, only if you're under real serious financial pressures here.

HARRIS: Got you.

WILLIS: And Tony, if you have any questions about your 401(k) or other retirement issues, send them to me at gerri@cnn.com. We love to get the questions. We answer them here every Friday.

HARRIS: Appreciate it. Thank you, Gerri.

WILLIS: My pleasure.

HARRIS: CNNMoney.com has advice and answers for you. Check out our special report, "America's Money Crisis." Fed Chairman Ben Bernanke today endorsed the idea of an economic stimulus plan, but he says a stimulus alone won't be enough to solve the current financial crisis.

(BEGIN VIDEO CLIP)

BEN BERNANKE, FEDERAL RESERVE CHAIRMAN: The damage in terms of lost output, lost jobs and lost wealth is already substantial. The global economy will recover, but the timing and the strength of the recovery are highly uncertain. Government policy responses around the world will be critical determinants of the speed and the vigor of the recovery.

The incoming administration and the Congress are currently discussing a substantial fiscal package that, if enacted, could provide a significant boost to economic activity. In my view, however, fiscal actions are unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system.

(END VIDEO CLIP)

HARRIS: To further stabilize the financial system. All right, Bernanke did not endorse or comment on any specifics of the nearly $800 billion stimulus proposal.

All right. Unemployment lines across the country are growing. But in one state, the local government completely ran out of money to dole out to people in need. Susan Lisovicz is at the New York Stock Exchange with details on this story. Susan, what happened here?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, Ohio, Tony, has so many people asking...

HARRIS: The State of -- oh, boy.

LISOVICZ: ... for unemployment benefits. Yes, this is a state that we have focused on quite a bit in the last year. So many people asking for unemployment benefits that the state ran out of money.

State officials say, there shouldn't be any disruptions in benefits, though. It's already been approved to borrow $250 million from -- where else -- the federal government so it can send out checks later this month. The Buckeye State is battling huge job losses in the auto and banking sectors. Last week, Ohio extended the operating hours for its unemployment claims hot line because of the huge volumes of calls it's getting -- Tony.

HARRIS: Wow, OK. So, Ohio's problems probably aren't unique. We know there are difficult times in California, for example. Could we see something like this in other places?

LISOVICZ: Yes. And states that aren't that far off, Tony. States aren't bringing in as much tax revenue. At the same time, people are losing their jobs, of course, at a disturbing pace. More than 4.5 million Americans are now getting unemployment benefits.

And Michigan, Ohio's neighbor, has the highest unemployment rate in the country. You were talking about Fed Chief Ben Bernanke, speaking at the London School of Economics today. He said to expect more job losses in the coming months, but he offered a glimmer of hope, saying the situation could stabilize later this year. We certainly hope so.

But right now, on Wall Street, well, you know, there are a lot of concerns. We're at the beginning of the corporate earnings season, and the fourth quarter, by all accounts, rough. The Dow Industrials on the plus side, but just modestly so. Blue chips up 11 points. Nasdaq's doing much better. It's up 16 points or 1 percent, Tony. Hanging in there.

HARRIS: Yes. LISOVICZ: There were four days of losses, so, you know, going in the opposite direction.

HARRIS: We'll take it. All right, Susan, thank you.

LISOVICZ: You're welcome.

HARRIS: Hillary Clinton in the Senate hot seat fielding questions about her husband's global foundation. A conflicts of interest for the secretary of state job? We'll get the facts.

(COMMERCIAL BREAK)

HARRIS: Let's see. I believe Barbara Boxer is questioning -- Barbara Boxer, the senator from California, is questioning Hillary Clinton right now during her confirmation hearing. She is before the Senate Foreign Relations Committee this hour.

Senator Clinton is expected to win confirmation as secretary of state. But senators are raising concerns today regarding her husband's global fundraising foundation, and potential conflicts of interest. Our Josh Levs is here to tell us about that, and explain what the Clinton Foundation actually does. Josh, good to see you, sir.

JOSH LEVS, CNN CORRESPONDENT: Yes, good to see you, too. You know, it came up -- you won't be surprised -- at the very top of the hearing --

HARRIS: Senator Lugar, yes.

LEVS: Yes, it was Senator Lugar. Exactly. Bringing it up way up at the beginning there. And actually, they both brought it up. And Senator Clinton I will say was praised by lawmakers on both sides today, but they also agreed that the former president's fundraising should and will be subject to scrutiny.

(BEGIN VIDEO CLIP)

SEN. RICHARD LUGAR (R), INDIANA: The core of the problem is that foreign governments and entities may perceive the Clinton Foundation as a means to gain favor with the secretary of state. Although neither Senator Clinton nor President Clinton has a personal financial stake in the foundation, obviously, its work benefits their legacy and their public-service priorities.

(END VIDEO CLIP)

LEVS: Tony, on the screen behind me right now is a massive list that the Clinton Foundation put out last month. It's nearly 3,000 pages, and I have a graphic here to show you a few of the key donations that have drawn some attention.

More than $10 million from the kingdom of Saudi Arabia. Also, several other governments are listed as giving between $1 million and $5 million. They include Kuwait, Qatar, Oman and also Dubai. Also, you know, a reminder of how sensitive this can be, a donation of at least $10,000 from Blackwater, which is that controversial company that protects diplomats in Iraq.

But I also want to put this in context for you with these figures here. Check this out. The foundation says it's had more than 200,000 donors. The median donation is $45. And I called them today, Tony, or e-mailed with them. They just told me that they have raised more than $560 million total, so all of that falls within that.

HARRIS: OK. Let's sort of drill down on this a bit. The foundation and the Obama transition team have agreed, is my understanding, to total transparency.

LEVS: Yes. Transparency. They did. They came up with an understanding, a written understanding. Former President Clinton was going to take a limited role in fundraising. Also, donations will be reported, subject to review by the State Department. And, you know, he told CNN last month that he supports these measures.

HARRIS: OK.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: It's important to make it totally transparent, so you know who the donors are and let people know that there is no connection to the decisions made by America's national security team, including the secretary of state.

(END VIDEO CLIP)

HARRIS: And Josh, quickly, what is it that the foundation is doing with this money?

LEVS: Yes, I'll give you some basics. You know, one thing that's different about this foundation is usually when you hear the foundation, you think it's a group that gives money to other charities.

They don't. They run their own stuff. Let's take a look here. I just want to show you some of the many programs they've got going. Alliance for a Healthier Generation. Over here, this is their HIV and AIDS Initiative. The Clinton Global Initiative brings people together to talk about major issues all over the world.

They have this, the Hunter Development Initiative. The Climate Initiative. This is where -- they're working in regional communities all over the world to try to tackle what many see as a climate crisis.

Economic programs, as well. Also, I'll end with this, Tony. A lot of people don't realize, the Clinton Presidential Center and Presidential Library is also part of the foundation. It all falls under that same rubric. And you can get a lot more information right here, clintonfoundation.org.

HARRIS: Nice. OK, Josh, appreciate it. Thank you, sir. LEVS: Yes, thanks, Tony.

HARRIS: Roland Burris is getting ready to take his seat as Illinois's new senator. Senate leaders have now accepted his revised credentials. They say Burris should be sworn in this week. Burris talked today with our John Roberts on "AMERICAN MORNING.

(BEGIN VIDEO CLIP)

JOHN ROBERTS, ANCHOR, "AMERICAN MORNING": What was the turning point?

ROLAND BURRIS (D), ILLINOIS SENATE APPOINTEE: I think the turning point came when people began to see my credentials, and they saw me and my desire to serve. I think that that's when the public opinion -- and, by the way, there are a lot of persons who think that I was wrong by not doing that. But we've gotten, you know, just hundreds and hundreds of calls from all over the country.

You know, encouraging me to, you know, to stick to my principles. And to, you know, continue to seek to be seated. So, I got a lot of encouragement from friends and family, and of course, when my wife encourages me to do that, I know what I'm doing is right.

(END VIDEO CLIP)

HARRIS: Senate leaders initially balked at Burris's appointment. That's because it was made by Governor Rod Blagojevich. The governor, as you know, is accused of trying to sell the Senate seat. He has been impeached by the Illinois House and faces a Senate trial.

Let's get a check of the weather now with Rob Marciano.

(WEATHER REPORT)

HARRIS: Thanks, Rob.

He disappeared into thin air before his plane went down. A mid- air mystery, straight ahead.

(COMMERCIAL BREAK)

HARRIS: Federal and state police are looking for Indianapolis businessman Marcus Schrenker today. Officials say he tried to fake his death in a plane crash to dodge a criminal investigation. CNN's Brooke Baldwin is in Harpersville, Alabama where Marcus Schrenker was last seen. And Brooke, there is a bit of of new information to report in this investigation.

BROOKE BALDWIN, CNN CORRESPONDENT: There is additional information, fresh information for you, Tony. You see this here? This is a tie that was in the storage unit just down the road, a storage unit that was rented by Marcus Schrenker.

Also inside that unit, a motorcycle. That is confirmed by U.S. marshals. And when authorities went to that storage unit last night to try to find the motorcycle, it was gone.

(BEGIN VIDEOTAPE)

BALDWIN (voice-over): Thirty-eight-year-old Marcus Schrenker, seen in this YouTube video, likes to perform tricks from the cockpit. But Sunday night, this Indiana businessman allegedly pulled off the biggest stunt of his life.

Police say Schrenker was alone, flying to Florida in his single- engine prop plane when he radioed for help near Huntsville, Alabama. Schrenker told air-traffic controllers his windshield had imploded and he was bleeding severely. When they radioed back, no response. A little later, according to the FAA, his plane crashed in a Florida swamp, barely missing nearby homes.

SCOTT HAINES, SERGEANT, SANTA ROSA, FLA., SHERIFF'S OFFICE: Our belief is now that it was put on auto pilot somewhere around the Birmingham area, and the pilot parachuted out of the plane and handed in the Harpersville, Alabama area.

Later that night, Richard Ferguson (ph) says Schrenker showed up on his property. The Alabama man, who wouldn't go on camera, claims the pilot told him what he now thinks is a tall tale, the same story Schrenker later told police, who took him to a motel.

VOICE OF RICHARD FERGUSON, ENCOUNTERED MARCUS SCHRENKER: He just told me that him and two of his buddies was canoeing, turned the canoe over out here in the (INAUDIBLE) River.

BALDWIN (on camera): Shranker was last seen here at the Harpersville Motel in Alabama. According to police, Sunday night, he checked into that room, paid in cash and faked his name on this receipt before taking off into the woods. But the question still remains, who is Marcus Schrenker, and why would he be on the run?

(voice-over): Perhaps one reason. The State of Indiana is investigating securities violations and a string of bankruptcies related to Schrenker's three financial management companies. Tom Britt is a colleague.

TOM BRITT, COLLEAGUE: Why someone would jump out of an airplane and leave it on auto pilot with his training and his background is beyond me. There is just no -- there is no reason for him to do that, other than trying to stage something.

(END VIDEOTAPE)

BALDWIN: U.S. marshals also tell us today that Tom Britt, who you just heard from, received an e-mail from a man claiming to be Schrenker, and apparently Schrenker wrote that he had been reading about his disappearance on sites like cnn.com and he wanted to write this e-mail to vindicate himself, saying that the crash was an accident, and that he was embarrassed, because of all of this for his family. But Britt did turn that e-mail over to authorities, Tony, because there were also some allusions to suicide.

HARRIS: OK. Brooke, what else did you learn when you went to that storage unit?

BALDWIN: Went down to the storage unit just a little while ago, met one of the employees, and it was her sister who actually dealt with Schrenker on Saturday. Apparently, Schrenker showed up in some kind of brown truck with a trailer, trailing a bright red motorcycle, went in, paid in cash to rent a storage unit for that motorcycle, said he would be back on Monday.

Next thing they knew, the storage employees came back yesterday. There was a lock on the ground, key still in it. Storage unit was empty. Schrenker out of town.

HARRIS: OK. Brooke Baldwin for us in Harpersville, Alabama, following this bizarre story. Brooke, appreciate it. Thank you.

Another last for President Bush. Just a short time ago, he held his last scheduled cabinet meeting. There are a lot of lasts in that room. Almost all of the cabinet members are out after Tuesday's inauguration.

Defense Secretary Robert Gates gets to keep his job. President Bush's legacy, that is the subject of thousands of iReports pouring in to CNN today. Let's cue up the machine, let's get going, let's take this trip to cnn.com's iReport desk and check in. Tyson Wheatley is there at the end of all of this. Tyson's corner ramped up, ready to go. There he is.

Tyson, here is the thing, you didn't really have to watch yesterday's extraordinary final press conference to have an opinion about the president's legacy. And I guess you've been inundated with i-reports.

TYSON WHEATLEY, PRODUCER, CNN.COM: That's right, Tony. Eight long years, lot of opinions, a lot of momentous events.

And you know, yesterday, of course, we were asking people to weigh in on President Bush's legacy. You know, Tony, there was a lot of frustration, a lot disappointment, even some anger towards the current sitting president but there were also a lot of defenders.

And one of the common themes that we saw yesterday in particular was that these big events, September 11th, the Iraq War, Hurricane Katrina and the economic recession, these are the events according to i-Reporters, that are doing to shape and define Bush's legacy for better or for worse. Let's go ahead and take a look at these responses.

(BEGIN VIDEO CLIP)

JIMMY DEOL, I-REPORTER: He became the president that day when he stood on the rubble of 9/11 and said those famous words. The whole nation rallied behind him. He was advised by his advisors. He had prepared for the -- (INAUDIBLE) he governed with his heart, wrong or right. (INAUDIBLE)

MARIA DAVIS, I-REPORTER: When 9/11 happened, he did help our country, held us together to keep us close to one another and a close unit. And also without his help, we wouldn't have caught Saddam Hussein and wouldn't have had him out of our hair. But the cons are even after Saddam Hussein was found, we were still funding the war in Iraq with billions and billions of dollars that we could have used here in the States.

DAVID P. KRONMILLER, I-REPORTER: The man who used to espouse winning the hearts and minds was also the man responsible for shock and awe. Mr. President, it's very difficult to win hearts and minds when there is no body for the heart to reside in because of your shock and awe. It is this duplicity, I think, that intrigues all of us. A man, who I believe, does want to do good but who is, in my opinion, at the very least, overwhelmed by the responsibilities of the office.

(END VIDEO CLIP)

WHEATLEY: OK. So, Tony, there you have it. Just a small actually response -- of a sampling I should say of the responses that we got yesterday.

HARRIS: Yes. A lot of views. Eight years and brings about a lot of opinions. What are you asking of our i-Reporters today, Tyson.

WHEATLEY: OK. Well, I'll try to transition this, but obviously, so, we're moving out with the old and in with the new.

HARRIS: Oh! OK.

WHEATLEY: Tony, we're are -- we are just one week away from the inauguration, historic moment and so we're trying to get ahead of this by asking people, are you planning to go to D.C. for the inauguration?

And if so, tell us your plans. Tell us about it. Go to ireport.com/desk. And let us know, how are you going get there; what are you going to do when you're there. By some accounts, this is going to be the most photographed moment in US history. So, pretty exciting.

HARRIS: Yes. Yes. Should be. And I can't wait for those i- reports. Tyson, good to see you. See you tomorrow. Thank you.

WHEATLEY: Take care, Tony.

HARRIS: President Bush will say good-bye to the nation in a farewell speech Thursday night. The White House says Mr. Bush will reflect on his eight years in office and welcome President-elect Barack Obama. CNN will carry that live beginning at 8:00 Eastern time.

Your life, your job, your taxpayer money. The transition team talks TARP, and we talk to a senator who calls this bailout a hot potato. It is in the next hour of the CNN NEWSROOM.

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HARRIS: Martin Luther King, Jr.'s daughter, we will talk with Reverend Bernice King about her father's legacy and what the Obama presidency means to the family.

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