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President Obama Phones Middle East Leaders; Geithner Confirmation Hearing; Closing Guantanamo Bay
Aired January 21, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And hello again, everyone. I'm Tony Harris in the CNN NEWSROOM.
And here are the headlines from CNN this Wednesday, the 21st day of January, 2009.
He begins in prayer. The economy and two wars face the new president on his first full working day in office.
The state of the economy, according to the American people. New CNN poll numbers show that you expect a recovery to take years.
It may be the beginning of the end for the U.S. prison at Guantanamo Bay. President Obama calls for a suspension of trials.
Wasting no time, President Obama already tackling Guantanamo Bay. The president ordering a halt to prosecutions for suspected terrorists at the detention center. He is requesting a 120-day suspension of trials pending review. A judge this morning granted the motion in the case of one detainee. Suspensions in additional cases to be considered later today.
We will bring you a live report from Guantanamo later this hour.
You know, he said he wanted to hit the ground running, and President Barack Obama's first full day in office is a busy one. It started with a prayer service at Washington National Cathedral. He also has a meeting with his economic team, and he sits down with top Pentagon brass.
White House Correspondent Suzanne Malveaux joining us now live.
And Suzanne, you broke the news for us last hour that the president had phoned Middle East leaders.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: That's right, Tony. He's obviously putting the Middle East peace process on the top of his agenda, certainly moving that since we saw the crisis that occurred just in the last couple of weeks between Israelis and Hamas in Gaza.
He put in calls to the Palestinian leader Mahmoud Abbas, Israeli Prime Minister Ehud Olmert, Jordan's King Abdullah, and Egyptian President Hosni Mubarak, all reaching out to them, saying that he wanted to put this at the top of his agenda, that he wanted to get involved. We have heard that as recently as today, that there may be a Middle East envoy that he appoints to go directly to the region to work with these folks, but clearly he is sending a very strong signal to these world leaders and to that region that that is an important item on his agenda.
Also today, he's going to meet with his top economic advisers. He's been talking about really the need to push forth that $825 billion economic stimulus package, so he's going to sit down with his top economic team to discuss the best ways to do that, and to convince members of Congress that he needs that money.
And Tony, he's also going to be sitting down with top military brass, his secretary of defense, Gates, as well as General David Petraeus, to essentially set forward a new mission, a mission that he talked about on the campaign. He said from day one that he wants U.S. troops out of Iraq in 16 months. It is important to have troops in Afghanistan, where things have declined, so he is going to be asking for input, we're told, from Pentagon officials, from military advisers, in terms of what is the best way to make that happen -- Tony.
HARRIS: OK. Suzanne, appreciate it. Thank you.
Very quickly, we want to take you to Capitol Hill right now. Some contentious moments right now in the confirmation hearing for treasury secretary nominee Timothy Geithner. The questioning from Democrat Jay Rockefeller.
(JOINED IN PROGRESS)
SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: It won't make any difference if you don't have electricity.
TIMOTHY GEITHNER, TREASURY SECRETARY NOMINEE: Senator, I found you compelling on this in private, and as compelling in public on this basic question. And If I'm confirmed for this job, I expect to be part of the team of people the president's brought in to help figure out a way to put in place an energy policy for the country that will meet not just the objectives you laid out, but the broader imperative of using energy more efficiently in a way that's less damaging to the environment.
I think you're right that it's going to be very hard to do, complicated to do. The stimulus package now moving through the Congress is -- it's changed, it has moved through. We're open to suggestions on how to make that package most effective.
ROCKEFELLER: You just got one.
GEITHNER: And I hear your suggestion, and I know you've made it to others. And I'll try to make sure it gets a fair and considered hearing.
ROCKEFELLER: Thank you, sir.
SEN. MAX BAUCUS (D), FINANCE CHAIRMAN: Thank you, Senator.
I note for the record that Senator Bill Nelson is present with me today. And I welcome here today the organizing resolution Bill to provide for new standards to new committees has not yet passed. Maybe it will pass later today.
And there are three new Democratic senators who will be on this committee once that organizing resolution gets passed. It will be two new Republican members on the committee when that happens, and I look forward to all new members joining this committee in full capacity, as quickly as possible. That will hopefully be later today and in future days.
But we welcome you here today. And we look forward to the time when you're a full participating member, Senator.
The question kind of on my mind, and on the mind of several others -- I think Senator Schumer alluded to it -- it stands between taxpayers and investors as you try to get the credit markets moving freely.
How are you going to value these toxic assets? What procedures are you going to use? You buy them up, put them in a so-called bad bank, it's -- I guess the basic question is, most people think there will have to be a premium if you go that route, as opposed to, for want of a better expression, some nationalization.
And so my question is, how are you going to value those assets as you set up so-called bad bank? What procedures are you going to use? It's a big question on the minds of many, many people, and certainly on the minds of, I can say, with members of this committee.
GEITHNER: Senator, I agree with you, it's an incredibly difficult thing to do and to get right, and getting it right will be central to the basic credibility of the program. But what we do will depend a little bit on the precise nature of the program we design and lay out. And I can't give you an adequate response to how we do it well without doing it in the context of the framework of the program we're going to lay out.
You know, obviously, you can look at how the market is pricing similar securities. You can use model-based estimates by independent, third- party evaluators to try to make a judgment about the what the ultimate value of these things are. You can listen to supervisors give you their own expectations of these kinds of things.
There is a range of approaches you can do. All of them have risks. All of them are imperfect. They all have limitations.
Most people believe you need to look at a mix of those type of measures, but it's very hard to do but critically important to get right. but when we come up here and lay out for you the program we think is going to be most effective, we'll explain how best -- how we think we can best solve this valuation problem so that we are protecting the interest of the taxpayers.
BAUCUS: That was going to be my next point. It's clearly the impression here in the Congress that taxpayers have not been sufficiently protected in the initial round of TARP. And there's, I think, a very deep concern that American taxpayers may not be sufficiently protected this next time around. And so I would urge you to err a little more on the side of protecting taxpayers, because I think that will engender much more confidence in the country. You know, a lot of investors who invested in these institutions did so at their own risk.
American taxpayers are just trying to help -- us help the government to help the country function economically in a prosperous way, but a fair way, fair to them. So I would urge you actually quite significantly to err on the side of taxpayers as you set up those valuation schemes.
I have actually -- I'd like to submit for the record, Mr. Geithner, today's "New York Times." I'm sure you saw it.
These are questions for you, questions by various people. For example (INAUDIBLE) and a question about the complexity of the tax code. Anna Jacobson Schwartz asked again what criteria you're going to use.
And let's see. I think Mitt Romney asked about how you're going to effectively regulate the financial services industry.
Robert Shiller of Yale asked what you mean by resiliency when times are normal. And Greg Mankiw asked a question, too. Basically, President Obama supports the estate tax. Why should a person that leaves his money to his children pay more in taxes than a person with the same income who spends all his money on himself?
Then, of course, there is a question of Roger Morrison (ph), basically asking, should a large financial institution (INAUDIBLE) reserve requirements through other regulatory penalties when they become too big to fail?
Well, I think it addresses the basic question of too big to fail, which I think is a huge question our country is facing. But I urge you very strongly to figure out ways where we do not allow institutions to reach the point where they think they're too big to fail, because then I think they take risks of your possessions, it's unhealthy to the system, moral hazard questions rise much more significantly. And I just urge you to try to find a way to -- as difficult as it is, to avoid that situation.
Thank you.
Senator Grassley.
SEN. CHARLES GRASSLEY (R), IOWA: Hey, would you do me a favor? The next time Senator Rockefeller talks to you about ethanol, would you remind him that Senator Grassley supports coal gasification and clean coal technology?
(LAUGHTER)
GRASSLEY: Mr. Geithner...
BAUCUS: I'll do that. I'll remind him.
GRASSLEY: Well, thank you. OK.
I'm done asking you about your taxes now.
The treasury secretary plays an important role in setting tax policy. As Finance Committee members, we'd like to get your views on the trends and revenue.
CBO reports that over the past 40 years, taxes, as a percentage of GDP, averaged 18.3. In the year 2000, federal taxes averaged 21 percent, a record above World War II levels. Individual income taxes were at even more dramatic levels. CBO reported that to be 10.3 percent of GDP.
And I've got a lot of other statistics, but I think you know what I'm talking about.
Now we hear a lot of criticism from those who oppose the bipartisan tax relief plan of 2001 and 2003, and I want to emphasize "bipartisan." One of the main criticisms is that we cut income taxes too much. That is -- the allegation is that the bipartisan tax relief plan gutted the federal revenue base. I was pleased to see...
HARRIS: And very quickly, we have some breaking news just in to CNN.
We told you earlier that President Obama was ordering a 120-day suspension of trials at Guantanamo Bay. We've just received word, according to The Associate Press, the draft executive order for President Obama calls for closing -- I just mentioned AP -- that a draft executive order for President Barack Obama calls for closing Guantanamo Bay within a year. So fulfilling a promise to move forward with an executive order to close Guantanamo Bay.
Once again, according to The Associated Press, a draft executive order for President Barack Obama calls for closing Guantanamo Bay within a year.
We will check in with our Susan Candiotti in just a couple of moments. She is at Guantanamo Bay in Cuba, and we will check in with her in just a couple of moments.
While we have a moment, let's do this. Let's bring in our Christine Romans. She's at our business desk in New York, while we also pay close attention to what's going on now with the confirmation hearing for treasury secretary nominee Tim Geithner.
And Christine, we were talking last hour. I believe and you believe this is a very important hearing if you want some idea, some roadmap as to how the administration, moving forward, is going to spend your tax dollars.
What have you been hearing?
ROMANS: Well, what I'm hearing is that Timothy Geithner is not giving specifics on any kind of big comprehensive plan that the administration is going to come forward and talk about, what they're going to do next in terms of shoring up the banking system. We know that he has said there needs to be more oversight and better scrutiny of the TARP.
You heard the word "TARP" over and over again, the Troubled Asset Relief Program. It is that $700 billion financial rescue. It's called TARP in Washington and here among people like me and you, who talk so much about that bailout.
And the stimulus. He said he is open to suggestions for the stimulus. And there's a lot of senators there who have their own suggestions.
The stimulus is something else. That's the $800-plus billion effort to sort of juice the economy, and that will be infrastructure spending and maybe health care spending, and maybe tax cuts and a whole bunch of other things.
So we're -- this would be the person, along with Larry Summers, who would be actually housed there in the White House, in the West Wing. These would be the people who would really be orchestrating all this.
And make no mistake, Tony, it is a very complicated effort under way here. Some $7 trillion of investments and loans and bailouts and programs, new programs and old programs, and programs that are being developed on the fly to try to get the economy going.
He did say something I found very interesting. "We are at the very beginning of this process for stabilizing the system."
I think this new administration is trying very carefully to lay it out there.
HARRIS: Yes. Yes.
ROMANS: Right. I mean, people talk about the first 100 days. This is not 100 days hour. On the one hand, we are going hour by hour in some parts of the financial system, gauging everything we can to see just how, frankly, solvent parts of it are. And on the other hand, we're told that any kind of relief is going to come a long way off.
When you look at the forward -- the leading statistics, the economist s tell me you can six months out, when you look at leading indicators. And for the next six months, it looks ugly. So beyond 100 days, six months, it looks ugly.
HARRIS: Well, and Christine, let's be honest about this. Part of the reason it's going to take some time is we heard the nominee talking about these bad assets on the books of these banks that are in trouble right now.
ROMANS: Right.
HARRIS: And what do you do with these bad assets? For anyone watching right now, if you're trying to get some clue, some signal, maybe puffs of smoke of some kind, as to when this starts to turn around, it is at the point at which these bad assets, it seems to me, comes off the books of these banks. Either they are insured by your tax dollars, or they are purchased by the government, rebundled in the framework of some bad assets bank, and repackaged and resold. ROMANS: Right. And you're hearing the senators try to pin him on this idea of bad banks.
HARRIS: That's right, yes.
ROMANS: And they are. And he keeps saying, you know, I don't want to come out and give you specifics yet of a plan that we will bring to you, but he said a couple of times, Tony, something I think is interesting. He said there is a lot of different ways to do it, to try to fix that problem, the problem that you are talking about.
There are a lot of different ways. He said none is perfect. None is perfect.
And maybe it has to be some combination of all of them. But he doesn't want to come out too early and say what that is for fear of disappointing, because this is about confidence and clarity, he said. And so when they have a clear picture of what they're going to do...
(CROSSTALK)
HARRIS: Christine, can I stop you? Aren't we clear at this point, you doing what you do every day, me just sitting here listening to you every day, aren't we at least clear at this point that something has to be done with these assets, these bad assets, because we have no idea -- I won't lend to the Bank of Christine because I don't know what's on your books.
ROMANS: Right. No.
HARRIS: You won't lend to me because you don't know what's on my books. So until something is done with those assets, I mean, look, we will have no clear indication as to when we've hit a turning point here.
ROMANS: And doesn't that bring us right back to the very beginning, what they were talking about last September, about getting the bad assets off the banks' books?
HARRIS: Yes.
ROMANS: I mean, so here we are right back at the very beginning again. No, you're absolutely right.
And the other question, Tony, is that the assets keep getting worse, frankly.
HARRIS: Yes. Yes.
ROMANS: I mean, we don't know what their value is because no one will buy them. You know, in a free market, something is only worth what someone will pay for it. If nobody will buy it, how do you value what it is on their books?
HARRIS: I mean, what premium would you ask for in exchange for these assets? I mean, what premium? ROMANS: Right. Well, and then the other thing, Tony, is then we have the commercial real estate-backed assets, consumer lending, autos. There's a bunch of other stuff that's going to start going bad, too. So there is just kind of more out there, a lot more talk about this whole bad bank idea. And you heard the senators trying to kind of ask him about it, and he's not giving any specifics.
HARRIS: Well, this is an important hearing. I'm telling you, this is an important hearing. Maybe we'll dip back into it in just a couple of minutes.
Christine, thank you.
ROMANS: Well, I'll be watching it for you, Tony.
HARRIS: OK. Great.
ROMANS: OK.
HARRIS: Thank you.
History in the making, and you made sure you were a part of it. Now we are watching all of you, our CNN iReporters.
(BEGIN VIDEO CLIP)
AMINA REZA, IREPORTER: I'm from a Muslim background, and today is an intense day in history, to be a part of a moment where a black man is taking over the reigns of one of the most powerful nations in the world. As a woman of color, from triple minorities, I mean, I'm really looking forward to see the world as a nation embracing Obama.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
HARRIS: Your thoughts on the economic crisis as President Obama gets down to work.
CNN Senior Political Analyst Bill Schneider has new poll details.
Bill, good to see you.
All right, Bill. Let's get started.
How much support is there out there for President Obama's economic plan?
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: Well, Tony, start with the spending. Do people support big, new federal spending on construction and economic assistance? The answer is, yes, they do. Fifty-eight percent of Americans say they support it.
Most Republicans balk at the idea of all that government spending, but President Obama's plan includes tax cuts for individuals and businesses. Add those to the mix, and public support jumps. You see it here on the left, jumps from 58 percent to 71 percent, and the consensus broadens.
Republicans say tax cuts, we're in. Without the tax cuts, the plan is a partisan plan. With the tax cuts, it becomes really bipartisan.
HARRIS: Hey, Bill, did we poll on whether tax cuts actually do much to stimulate the economy?
SCHNEIDER: We certainly did. We asked people, "If your taxes were cut by at least $500, what are you going to do with the money?" And the answer is only 20 percent -- you see it at the top -- say they would spend it. That's not a huge stimulus.
Nearly half say they'd use the money to pay off their bills. No stimulus there. Thirty percent would save the money. No stimulus there.
President Obama is facing a tradeoff. Tax cuts may broaden political support for his recovery plan, but they're unlikely to have a big economic impact.
HARRIS: You know, with all of the new spending, Bill, are people worried about the deficit?
SCHNEIDER: Well, they're always worried about the deficit, Tony. By nearly 2 to 1, people say that the government should go ahead and balance the budget even if we're in a recession and at war.
Now, on January 20, '02, it was one of the few times we have ever seen people say, you know what? It's OK to run a deficit, even though they said it then by a narrow margin. But that was a few months after the 9/11 attacks, which suggests that that crisis was more traumatic for Americans than the current economic crisis.
HARRIS: Yes. All right. Our senior political analyst, Bill Schneider, for us.
Bill, appreciate it. Thank you.
SCHNEIDER: Sure.
HARRIS: Well, the clock is ticking on President Obama's first 100 days. A little history lesson here.
This notion of the first 100 days is largely a media invention. It dates to FDR's first term in 1933.
Roosevelt's aggressive tactics to battle the Great Depression resulted in 15 major new laws during his first 100 days. Presidents since have used the time to capitalize on their honeymoon with Congress. That's when good will with lawmakers makes it easier to pass the president's agenda.
And here's the seminal moment.
(MUSIC) HARRIS: With the playing of "Hail to the Chief," President Obama ushers in a new era at the White House and a real change in White House culture.
Thomas Whalen, historian from Boston University, joins me from Boston with his observations.
Thomas, good to see you.
PROF. THOMAS WHALEN, HISTORIAN, BOSTON UNIVERSITY: Same here.
HARRIS: So, you're a professor of social change. Yesterday, in referring to cynics of his economic plans, President Obama said the ground has shifted beneath them.
Culturally, has the ground shifted with this election?
WHALEN: Yes. It's kind of like going from Lawrence Welk to Miles Davis. The energy, the vitality was very palpable yesterday that Barack Obama exuded. And you could see it in the crowd, the way they responded to him. And it was, quite frankly, an exciting moment.
HARRIS: Well, what kind of changes do you think we can look forward to in sort of look, feel, tone of this new White House?
WHALEN: Well, I guess basically what he mapped out for us yesterday, saying it's the time, quoting biblical verse, to put away childish things, to go beyond the acrimonious tenor of the political parties that have dominated over the last 30 years, to get over the cultural wars, at least declare a truce there. And what he wants to do is bridge gaps that have cracked open wide since the 1960s.
HARRIS: How significant do you anticipate these changes will be when you compare them to the culture of past White Houses?
WHALEN: Well, I think they're very significant that, Barack Obama, what he proves is that no matter who your father is, no matter what social background or how humble an economic situation you were born into, it doesn't matter. You can rise to the top based on your own individual merits.
So in that sense, I think he reminds me a lot of Andrew Jackson coming to power...
HARRIS: Andrew Jackson? OK.
WHALEN: ... in 1829, because Andrew Jackson represented an era of the common man. And presidents who preceded him, people like George Washington, John Adams, Madison, they were all aristocrats. And Jackson was the first man to come from really humble roots to really seize power. And...
HARRIS: And he also carried a big stick and wasn't afraid to use it. Isn't that also true?
WHALEN: Oh, absolutely. And you know, it's funny. The funny story is, when Jackson had his inaugural, afterwards there was a reception at the White House.
HARRIS: Yes.
WHALEN: And the common people for the first time were really were allowed to go into the White House. And they had a reception. And it got kind of crazy. People were throwing around china, fights broke out.
And, you know, I love it, because that's democracy. It might be messy, it might be ugly, but I wouldn't trade it in for any other government system in the world.
HARRIS: Well, Thomas, Michelle's mom living with the family, sleepovers for the girls, you know, a lot has been made of this. It's not the first time we've seen this.
Are we making too much of the fact that this feels like a really normal family?
WHALEN: I think we are making too much of it. You know, Harry Truman lived with his mother-in-law, and his mother-in-law always told him that she could think of 50 other guys who were better suited to be president of the United States. I think Barack Obama has a much better relationship with his mother-in-law.
HARRIS: Thomas Whalen, thanks for your time. We appreciate it.
WHALEN: You're welcome.
HARRIS: So, what was it like to actually be a part of the 1.5 million people crowded into the National Mall and listening to this historic speech?
The Minor family knows. Kimberly, Marc and 6-year-old Jonathan made the trek. And they're offering up their reflections.
All right. Everybody -- oh, that's great. What are you reaching for, pictures there? What do you have in there?
KIMBERLY MINOR, ATTENDED INAUGURATION: Jonathan's trying to get his letter.
HARRIS: It's a gift for me, I hope.
(LAUGHTER)
HARRIS: Well, good to see you all again.
And Kimberly, the first time an opportunity to speak with you.
Marc, if you would, take us back a bit. I think you're reaching for that letter.
You ended up with tickets because your senator heard the story of the letter that you and your son Jonathan actually wrote to candidate Obama. Correct?
MARC MINOR, ATTENDED INAUGURATION: Yes. We're very thankful to Senator Menendez' office for coming through at the last minute. It was the hottest ticket, obviously, if my lifetime. And I wasn't sure we were going to get them until the very last minute. But they did come through with tickets for us, for the family to attend and watch Barack Obama be sworn in.
HARRIS: Well, that is terrific.
Big little man, Jonathan...
JONATHAN MINOR, ATTENDED INAUGURATION: Yes?
HARRIS: Can you hear me OK?
J. MINOR: Yes.
HARRIS: Hey, Jonathan, what it was like yesterday?
J. MINOR: Well, it was cold.
(LAUGHTER)
HARRIS: How many layers were you wearing?
J. MINOR: What?
K. MINOR: Lots of layers. Lots of layers. Heat packs and layers.
HARRIS: Kimberly, did have you a hat on his head?
K. MINOR: Yes. He head two hats and a hoodie, and his coat had a hood. And we had heat packs in his feet and his gloves.
HARRIS: Hey, Kimberly, did you talk as a family about the experience after it was over, and maybe you found someplace sort of cold -- warm to warm up? And did you have an opportunity to talk about the experience?
K. MINOR: We absolutely did. We did. We talked a lot.
J. MINOR: Yes.
HARRIS: Well, Jonathan -- why don't you let Jonathan take that on.
K. MINOR: Go ahead, Jonathan.
J. MINOR: Well, it was cold there. There was a really long line, and my...
K. MINOR: What was the best part about the speech? Didn't you like his speech?
J. MINOR: I loved the speech.
HARRIS: What was the best -- what is the thing that you will always remember about yesterday other than the cold, Jonathan?
J. MINOR: Well, the speech.
HARRIS: The speech? It was a pretty good speech.
Kimberly, what about you? Same question to you.
K. MINOR: Well, what meant the most to me, other than the fact that it's Barack Obama, and he's been sworn in as our 44th president, was the fact that we were in this crowd full of people from every part of the country and other countries, and they were all just so passionate and excited about what was happening to the United States, and the future and the opportunity for the children, as well as for us. You know, with this man who brings people together.
And that's what I felt. It was incredible.
HARRIS: Yes.
Hey, Marc, let me give you the last word on this. Years from now, this is something -- how does it feel to have provided a moment that your kids will be talking about with their kids and on and on and on for years and generations to come?
MARC MINOR, ATTENDED INAUGURATION: You know, we got up very early in the morning and made our way downtown. And I got to tell you, there were a lot of closures and a lot of walking for a little guy. But after we got him some nourishment and some heat and we were walking away, you know, Jonathan had a big smile on his face. And I said that I'm really glad to see you enjoying the moment and you may not recognize it now, but this is honestly a moment that you'll remember for the rest of your life. I know that we will.
HARRIS: And you've got the pictures to hang on to the moment.
M. MINOR: Absolutely.
K. MINOR: We have lots of pictures. It was a great day.
HARRIS: Well, Jonathan, the last time you were here, you were doing these things with your hands. What is it? You just want to make sure you're on television? Mom, it's OK. Mom, it's OK. Mom, it's OK.
Hey, It's great to see you, the Minor family. It's great to see you. Kimberly, good to see you.
K. MINOR: And it's a pleasure to meet you.
HARRIS: Jonathan and Marc. And where did the youngest go?
K. MINOR: He went away.
HARRIS: All right.
M. MINOR: He's off somewhere.
K. MINOR: He wasn't interested. He said he got a little bored.
JONATHAN MINOR, ATTENDED INAUGURATION: He's watching it from over there.
HARRIS: All right. Well, good to see you all. And thanks for sharing your memories of yesterday with us.
M. MINOR: OK. Thanks a lot.
K. MINOR: All right. Thank you.
HARRIS: We appreciate it.
New questions about the engines on board the U.S. Airways plane that crash-landed into the Hudson. Why federal officials ordered an extra inspection just weeks before the plane went down.
(COMMERCIAL BREAK)
HARRIS: We want to have you -- have a listen to some -- to a bit of the floor speech from just moments ago from Texas Senator John Cornyn. He was again expressing his concerns about the nomination of Senator Clinton to be the next secretary of state. He is specifically voicing his concerns about the donors to Bill Clinton's foundation. Have a listen to a bit of the floor speech from just moments ago.
(BEGIN VIDEO CLIP)
SEN. JOHN CORNYN, (R) TEXAS: The foundation's disclosure to make -- agreement to make disclosures once a year is simply not enough in order to achieve that kind of transparency that President Obama talked about yesterday that will help give the American people more confidence in their government. That is not doing business in the light of day in a way that restores that vital trust, to do it only annually after the fact.
This is only one of the -- one example of some of the improvements that could be made. In short, I remain concerned that Senator and soon-to-be Secretary of State Clinton's diplomatic work will be encumbered by the global activities of The Clinton Foundation under these circumstances. Not their good and charitable work, which I certainly support, but the contributions that they raise from these various sources that are not transparent, not subject to prompt disclosure.
(END VIDEO CLIP)
HARRIS: And despite the reservations of the senator, Hillary Clinton's nomination, she is expected to be confirmed in a vote that's scheduled to take place later this afternoon.
All right. Today divers hope to find the missing left engine of the U.S. Airways plane that crash-landed in the Hudson River. They hit the frigid water this afternoon after sonar equipment picked up an object about the same size. We're also hearing potentially troublesome information about the engines used by the aircraft. CNN's special investigations unit correspondent Abbie Boudreau is here with that.
Abbie, good to see you.
ABBIE BOUDREAU, SPECIAL INVESTIGATIONS UNIT: Good to see you too.
Now just three weeks ago, we learned the FAA issued what's called an air worthiness directive. Now directive is issued so inspections can be done and potential problems can be addressed.
In this case, the FAA was calling for engines of a certain make and model to be inspected because of previous compressor stalls involved in a small number of flights. Now the FAA tells CNN the engines from Thursday's flight were also subject to that directive.
We talked to the company that manufactures the engine for the Airbus A-320. The company spokesperson tells us all 3,000 engines have been inspected within the past month and only a total of 12 were found with temperatures higher than normal that could cause one of these stalls. The company also said it was exceedingly unlikely that the plane that ditched into the Hudson River last week contained one of those engines. The FAA says all U.S. airlines fully complied with that directive, including the U.S. Airways plane that went down.
Meanwhile, the NTSB continues to focus its investigation on a flock of birds as the source of the engine failures. The flight data recorder indicates that there's good reason for that. And today we are expecting to hear more from the NTSB on the entire investigation and whether or not they're able to find that engine.
HARRIS: Abbie, keep us posted. Thanks you.
BOUDREAU: No problem. Thank you.
HARRIS: All right.
The trial of September 11th terror suspects suspended at Guantanamo Bay. We will take you live to the military facility. That's next.
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HARRIS: Debate continuing on the Senate floor on the nomination of Hillary Clinton to be the next secretary of state. As you can see, Arizona Senator John McCain has the floor.
SEN. JOHN MCCAIN, (R) ARIZONA: I voice vote to the confirmation of Senator Hillary Clinton to be the next secretary of state of the United States of America.
SEN. JOHN KERRY, (D) MASSACHUSETTS: Mr. President, reserving right to object, I'm in that very strange position here of wanting to protect the prerogatives of the minority which is an important part of how we work here, but at the same time, completely supporting the senator from Arizona. So I'll balance this out for a moment and . . .
MCCAIN: Would the senator yield? Would I -- could while the unanimous consent motion is being considered, perhaps my other colleagues, Senator . . .
KERRY: I mean if we could ask for just a forbearance on the unanimous consent and perhaps it would be more appropriate if Senator Cornyn or some other -- someone from the other side of the aisle were willing to lodge that objection, because I'm personally very uncomfortable doing so.
MCCAIN: Well, let me just say to my colleague, I had just had a conversation with Senator Cornyn and he does not object to that.
KERRY: Well, I was going to ask for the same thing at the end of the comments, but I wanted to first see if he was prepared to clear it. Why don't we -- Mr. President, could I ask if the senator would withhold his unanimous consent request just for a moment. If the senator from Maine could be permitted to speak and we'll see if we can jump through this hoop.
MCCAIN: Mr. President, I yield the floor.
UNIDENTIFIED FEMALE: Thank you. Mr. President.
UNIDENTIFIED MALE: The senator from Maine.
HARRIS: Well, it looks like a pretty odd moment, wouldn't you say? It looks like the two senators, Kerry and McCain, are just trying to figure out the way to move forward with what we know is going to happen here, and that's a vote to confirm Hillary Clinton as the next secretary of state. It looks like a situation where John Kerry is wanting to protect the prerogatives of everyone who might want to speak about this process and speak on this nomination, while Arizona's John McCain is suggesting that it is time to move forward with the vote. I suspect that this will be taken care of in just a couple of minutes and perhaps, before the top of the hour, we will have a vote on the nomination to confirm Hillary Clinton as the next secretary of state. That was a touch odd.
OK. If the economy is issue number one, well certainly tackling terrorism is a close second for President Obama. One of the first orders of business, suspending the trials of terrorism suspects at Guantanamo Bay. Our Susan Candiotti is at the U.S. detention center in Cuba.
Susan.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Hi, Tony.
You know, it didn't take long for Barack Obama to fulfill one of his campaign promises, and that is for now to shut down, at least for four months, the military commissions that were set in place, set in motion and the detention camp by the Bush administration. This means that each and every case of every one of the roughly 245 detainees currently at the camp will have to be reviewed. That is going to be a long and laborious process. But with the rapidity with which this happened, the rapid action that has been taken where at GITMO things move along so slowly, really, this has happened with lightning speed, the action of getting this process underway. This morning, two military commission judges agreed to put those stays in place and, of course, it will be a complicated job because you have where will these people go? Well, there are several options. Some of them could be brought to the United States to be tried in U.S. courts, some of them could be tried by U.S. courts marshal, some of them might be sent to international courts or sent home to their own countries or some other country that is willing to take them. But we can tell you this, of the 60 of the 245 that are already here that have been cleared for release, so far the U.S. government has not been able to find any country that is willing to take them.
Now, among the handful of people who actually have been charged are five defendants who have been charged in the 9/11 attacks, including the alleged mastermind, Khalid Shaikh Mohammed. He and his other four co-defendants in court this day in a pre-trial motion told the judge that they don't want the stay, they want to move the cases forward. It didn't matter what they said. It's been rejected by the judge.
Now for reaction we talked to some victims' relatives of the 9/11 attacks who are flown down at government expense to watch the proceedings for themselves. They're not happy with the decision to keep the process in a stay for four months. They said to me that they would much prefer President Barack Obama had moved forward with this military commission process.
However, one of them told me that, if you're going to delay it, at least let's review the cases, and then whatever you decide, let's make sure you get it going because they feel that justice in their case has been denied.
Tony, back to you.
HARRIS: CNN's Susan Candiotti at Guantanamo Bay, Cuba.
And, Susan, we appreciate it.
Some breaking news in to CNN. Something we are following very closely now. A report of envelopes containing an unknown white powder. Those envelopes have been sent to "The Wall Street Journal," the corporate offices of "The Wall Street Journal."
More information here. "The Wall Street Journal" received 13 standard-sized envelopes today, all containing an unknown white substance. "The Wall Street Journal" executives, the letters were addressed to "The Wall Street Journal" executives. They were not hand-written.
Some were delivered actually to the executives' offices and others remained in "The Wall Street Journal's" newsroom. All of the envelopes had a Tennessee postmark. Now we understand the 9th and 11th floors of "The Wall Street Journal's" corporate offices have been evacuated right now. Those floors house the editorial page and the newsroom.
Is this something very serious? Is this a hoax? It is still very early into this story. It is very much breaking and developing right now. Once again, "The Wall Street Journal" has received 13 standardized or standard-sized envelopes today all containing an unknown white substance. The investigation continues. But in the meantime, the 9th and the 11th floors of the building, which house the editorial page and the newsroom, have been evacuated. We will continue to follow obviously the latest developments on this story and bring you the very latest here in the NEWSROOM.
A new president and a new promise to push for clean energy sources. Can his plan possibly work?
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HARRIS: Well, now that Barack Obama's president, he is pushing an ambitious clean energy agenda and he is not backing off, even though oil and gas prices have fallen sharply. Cnnmoney.com's Poppy Harlow has our "Energy Fix" from New York.
Good to see you, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey there, Tony.
Yes, lots of lofty goals laid out in the inaugural address yesterday. President Obama laying out a clear goal when it comes to energy. In the next three years, he wants to double the amount of alternative energy that is produced in this country. Today, believe it or not, renewables only make up 7 percent of our total energy supply. Check out that chart right there. Pretty staggering when you really break down the numbers.
That's the most recent government data we have. It is from 2006. And as you can see, solar and wind power make up just a fraction of our already-small renewable energy sources. Advocates, though, of wind and solar say, all right, you can double the output, that's possible to do in three years, but you're going to need a lot of federal aid to do so.
Now the industry, we know it's been struggling lately. There's a recession, a huge credit crisis that has cut funding in a major way for a lot of projects and clean power, well, it needs a lot of capital. Right now, most renewable energy plants are more expensive to build and operate than natural gas plants and also coal plants. It's also more expensive to deliver that power to customers.
Now, to drive more alternatives energy development, the stimulus package that is being pushed by House Democrats, of course they unveiled it last week, well that sets aside $20 billion in tax cuts and credits for renewable energy production. And while visiting a plant in Ohio that makes parts for those wind turbines you see right there, President Obama insisted this is money well spent. Take a listen.
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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Renewable energy isn't something pie in the sky. It's not part of a far-off future. It's happening all across America right now. It's providing alternatives to foreign oil right now. It can create millions of additional jobs and entire new industries if we act right now.
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HARLOW: Of course, we know President Obama has also called for companies -- for power companies to get 25 percent of their electricity from renewable sources by 2025. That is a lofty goal, Tony. We will be on top of it and see what actually happens. But he's really making this a priority.
HARRIS: He really is. OK, Poppy, appreciate it. Thank you.
The gaffe that won't go away.
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HARRIS: A bit of an awkward start to the Obama presidency. The presidential oath was botched a bit yesterday. Oh, roll the tape.
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CHIEF JUSTICE JOHN ROBERTS, SUPREME COURT: I, Barack Hussein Obama.
BARACK OBAMA: I, Barack . . .
ROBERTS: Do solemnly swear.
OBAMA: I, Barack Hussein Obama, do solemnly swear.
ROBERTS: That I will execute the office of president to the United States faithfully.
OBAMA: That I will execute . . .
ROBERTS: The off -- faithfully the office of president of the United States.
OBAMA: The office of president of the United States faithfully.
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HARRIS: Well, the president and Chief Justice John Roberts playing a delicate dance of "what's my line" there. Perhaps it was brought on by nerves, but that didn't stop political analysts, including our very own, from weighing in.
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JEFFREY TOOBIN, CNN ANALYST: This is why I love the news business because you never know what's going to happen. Here you have the perpetual "a" student, John Roberts. The guy's never made a mistake in public before. And he thought he could administer the oath by memory, because it's only 35 words.
UNIDENTIFIED FEMALE: Right. Laid out in the Constitution.
TOOBIN: But twice he got the words wrong. First he put "faithfully" after "execute the office of the president of the United States." Then he left out the word "execute" the second time did he it. And you could see Obama . . .
UNIDENTIFIED FEMALE: Knew the words and paused.
TOOBIN: Right.
UNIDENTIFIED FEMALE: Letting him correct himself.
TOOBIN: And Obama sort of started to chuckle a bit because he knew that Roberts had made a mistake.
GLORIA BORGER, SENIOR POLITICAL ANALYST: What do you think he's going to do? What do you think is going through Obama's mind? Am I going to correct the chief justice of the United States? I think I know this oath. But maybe he knows it better than I do. So Obama kind of balked a little bit.
KEVIN MADDEN, FORMER MITT ROMNEY SPOKESMAN: He rolled with it. He actually kind of rolled with it.
BORGER: He did.
MADDEN: It's kind of an ad lib. But, you know, you see these guys in your impossibly perfect standards. He made a mistake and he got caught up in the moment.
TOOBIN: I couldn't possibly have (INAUDIBLE).
JOHN RIDLEY, WRITER/DIRECTOR: (INAUDIBLE) someone who's called a day player and your job is to come in, deliver your one line and get off the stage and that's it. What this guy -- I mean everybody has been preparing for this. It's not like he didn't know it was coming. And to not get it right is -- you know, not to hang him to hard. But inexcusable (ph) on this day.
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HARRIS: Oh, CNN NEWSROOM continues next with Kyra Phillips.
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