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President Obama Appears on "Leno"; White House First Supported Executive Bonus Loophole; Young Adults Dominate Unemployed Ranks; Some Recession-Proof Jobs Available
Aired March 20, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Once isolated as an axis of evil. Now invited to the global table. President Obama reaches out to Iran in a video message.
The Treasury Department, the AIG bonuses and that loophole we've been talking about. CNN's Ali Velshi gets the answers in an exclusive interview with Timothy Geithner.
Plus find out why thousands of taxpayers will not be getting a refund this year. It's part of our coverage putting you on the "ROAD TO RESCUE."
It is Friday, March 20th. Hi, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.
Our "ROAD TO RESCUE." CNN's survival guide is part of a bigger picture we're bringing you. That's "ISSUE #1". The economy. House members turn their anger over AIG bonuses into a big-time tax bill. Our Stephanie Elam checks on who's paying up.
Plus, Suzanne Malveaux looks at the president's recovery message delivered in an unpresidential venue. You may have seen it. No doubt you have heard about it. President Barack Obama chatting it up with Jay Leno last night. It's the first time a sitting president has been on late-night TV.
CNN's Suzanne Malveaux has the highlights.
(BEGIN VIDEOTAPE)
JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": The 44th president of the United States, please welcome President Barack Obama.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): In front of a crowd of fans and millions of viewers, President Obama played it mostly straight on "The Tonight Show," but did spend a lot of time talking bonuses.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Stunned.
LENO: I mean...
OBAMA: Stunned is the word. The immediate bonuses that went to AIG are a problem, but the larger problem is we've got to get back to an attitude where people know enough is enough. And people have a sense of responsibility.
MALVEAUX: A sense of responsibility that Mr. Obama says needs to extend beyond just AIG.
OBAMA: Who, in their right mind, when your company is going bust, decides we're going to be paying a whole bunch of bonuses to people? And that, I think, speaks to a broader culture that existed on Wall Street where I think people just have this general attitude of entitlement.
MALVEAUX: The appearance was meant to tout his stimulus plan and ease Americans' concerns about the economy. The commander in chief says reform is on the way.
OBAMA: When you buy a toaster, if it explodes in your face, there's a law that says, you know, your toasters need to be safe.
LENO: Right.
OBAMA: But when you get a credit card or you get a mortgage, there's no law on the books that says that if that explodes in your face financially, somehow you're going to be protected.
MALVEAUX: Sprinkled in with the policy talk, the president's staunch defense of his treasury secretary, Tim Geithner.
OBAMA: This guy has not just a banking crisis, he's got the worst recession since the great depression. He's got an auto industry on -- you know that has been on the verge of collapse, and he understands that he is on the hot seat, but I actually think that he is taking the right steps and we're going to have our economy back on the move.
MALVEAUX: Earlier in the day, the president felt the need to defend himself, over the much hyped appearance.
OBAMA: Somebody was saying the -- today, I think, that I shouldn't be on "Leno." I can't handle that and the economy at the same time.
(LAUGHTER)
MALVEAUX: It's that kind of scrutiny Obama later told Leno, it takes some getting used to.
OBAMA: It's a little bit like "American Idol," except everybody is Simon Cowell.
(END VIDEOTAPE)
MALVEAUX: Well, Heidi, obviously, very comfortable in that venue, very casual. He certainly hopes that he is -- that the White House very eager to move beyond the AIG controversy to focus a little bit more on a positive optimistic tone when it comes to the economy -- Heidi. COLLINS: Yes. The president's appearance may be remembered, though, unfortunately, for a kind of a gaffe that he made. Let's listen to that for a second.
(BEGIN VIDEO CLIP)
LENO: Are they going to put a basketball -- I imagine the bowling alley has been just burned and closed down?
OBAMA: No, no. I've been -- I have been practicing all along.
LENO: Really? Really?
OBAMA: I bold a 129. I have...
LENO: Oh no, that's very good. Yes. No, that's very good, Mr. President.
OBAMA: It's like Special Olympics or something.
LENO: No, that's very good.
OBAMA: The -- no, no, listen. I -- I'm making progress on the bowling.
(END VIDEO CLIP)
COLLINS: All right. So we heard the remark there about comparing his bowling to the Special Olympics, Suzanne. We know the White House is saying a lot about this now.
MALVEAUX: Well, immediately, they responded. Deputy press secretary Bill Burton yesterday trying to clarify this, saying the president made an offhand remark making fun of his own bowling. That was no way intended to disparage the Special Olympics.
He went on to say thanks to the Special Olympics. It's a wonderful program that gives an opportunity for people with disabilities around the world. I've also learned this morning, Heidi, that the president picked up the phone and he called Tim Shriver, who's the chairman of Special Olympics before the Jay Leno show actually air to apologize, to, again, express his disappointment, his regret that he didn't mean to humiliate anyone.
We are also learning that he is inviting Special Olympians to the White House, he says, to bowl, to play basketball, whatever. Obviously, trying to make some amends and to clear that up today.
COLLINS: OK. Suzanne Malveaux, sure do appreciate that. Thank you.
We've been hearing and talking a lot about the outrage over those mega bonuses for AIG executives and the loophole that allowed them. Now lawmakers are rushing to plug up that hole.
More from our CNN senior congressional correspondent Dana Bash. (BEGIN VIDEOTAPE)
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT (voice-over): Democrats are under intense pressure to get beyond the outrage and actually do something about AIG bonuses.
REP. CHARLES RANGEL (D), WAYS AND MEANS CMTE. CHAIRMAN: Do these people deserve at taxpayers' expense to receive these type of bonuses?
UNIDENTIFIED MALE: We just want to recover the taxpayers' money for them.
BASH: So, House Democrats rushed to pass a bill imposing a 90 percent tax on bonuses for employees with family incomes above $250,000. It applies not just to AIG, but all companies that got at least $5 billion taxpayer dollars.
Some Democrats admit that punishing employees by taxing bonuses after the fact may be legally questionable, but because of public outcry it's worth the risks.
REP. SHEILA JACKSON LEE (D), TEXAS: I realize that this may be subjected to constitutional challenge and/or the court but you know what? I'm prepared to battle in the courts.
BASH: Keeping them honest, the question is why didn't Congress wage this all-out battle before to prevent the bonuses? Let's start with Republicans. They now say...
REP. JOHN BOEHNER (R), MINORITY LEADER: The AIG situation underscores the fact that Washington isn't doing anything to help our economy.
BASH: But the reality is many GOP lawmakers voted against multiple attempts to ban bonuses, calling it meddling in the marketplace.
As for Democrats who run Congress, they did pass strict anti- bonus bills but they also allowed the Bush White House and the Obama administration to prevent those from becoming law.
In fact, the Obama team's role came to light when CNN reporting forced Senator Chris Dodd to reverse himself and admit, under pressure from the Obama Treasury Department, he inserted a loophole allowing AIG executives to keep their bonuses.
SEN. CHRISTOPHER DODD (D), BANKING CMTE. CHAIRMAN: The administration had expressed reservations about the amendment. They came to us and asked for modifications.
BASH: And now another Senate Democrat tells CNN the Obama administration blocked his attempt to stop the bonuses.
SEN. RON WYDEN (D), OREGON: Well, I can tell you specifically is I talked to virtually the entire administration economic team. I wasn't able to convince them to go along, and I think that's unfortunate.
BASH (on camera): Although we're now hearing anger from the White House over AIG's bonuses, Senator Wyden and other Democratic sources say just last month, the Obama officials made clear they thought banning bonuses was a bad idea because it risked driving talent away from Wall Street.
Dana Bash, CNN, Capitol Hill.
(END VIDEOTAPE)
COLLINS: That economic recovery plan loophole allowing AIG to keep its bonuses was a topic when CNN's Ali Velshi sat down for an exclusive interview with Treasury secretary Timothy Geithner.
(BEGIN VIDEO CLIP)
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Senator Dodd said that he had a clause that was put into the stimulus bill that basically allowed these payments to be made to people at AIG in this particular unit. And he says that somebody at Treasury asked him to put it in.
TIMOTHY GEITHNER, TREASURY SECRETARY: Let me just start by saying that Chairman Dodd has played an enormously important leadership role in this. He's doing the right thing in trying to make sure that the assistance we provide don't go to benefit people that shouldn't benefit from these things. And I enormously impressed by the importance of what he's tried to do in this case.
VELSHI: But did somebody -- have we figured out who told him to put this clause in?
GEITHNER: On this specific provision?
VELSHI: Yes.
GEITHNER: We expressed concern about this specific provision because we wanted to make sure it was strong enough to survive legal challenge but we also worked with him to strengthen the overall framework and his bill has this very important provision where he's relying on now to go back and see if we can recoup payments that were made that there was no legal ability to block.
VELSHI: How do we deal with what seems to be tone deafness on Wall Street? How can these announcements come out? How are people so divorced from the reality of how angry Americans are about it?
GEITHNER: It is enormously damaging to everything we're trying to do. You know, all it does is feeding this great loss of confidence in the quality of judgments about individuals presiding over these financial institutions.
And you know they're going to have to demonstrate a greater sense of responsibility going forward if they're going to earn back the confidence of the American people but you're right. It's very damaging and I completely share the basic frustration across America about what's gotten us to this place.
(END VIDEO CLIP)
COLLINS: We'll have more from Ali's interview with Timothy Geithner a little bit later on in the hour.
Outrage on Capitol Hill turned to action with quick passage of a House bill tax bonuses and not just at AIG. But other firms getting bailout funds, too.
CNN's Stephanie Elam joining us now live from New York to break down the bill a little bit.
So, Stephanie, this tax not just affecting AIG?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: No. Obviously, Heidi, AIG is definitely targeted here. They've supposedly given out $165 million in bonuses, 73 of which topped $1 million, after getting $182 billion in taxpayer money, or access to that.
So you see some of those major TARP recipients. They're talking about any company that has made over $5 billion in money or received more than $5 billion in money in that TARP fund. Any of those companies will be affected here. And it's retroactive to the begin of the year so even if someone has left the company and they've gotten a bonus, they would be affected by it as well.
The other thing that's really interesting about this it says $250,000 per family income. And if you're married filing separately, $125,000 there. So $250,000 and $125,000. It's kind of a low threshold for some if their spouse is making a good amount of money at another job as well. They'd still be taxed at that 90 percent rate.
So that's part of the reason why you see some people who are a little upset about this because it's not giving...
COLLINS: A little?
ELAM: Quite upset about it because it's not giving quite enough of a threshold on when this would change or how long it would be that way.
COLLINS: Well, I mean, 90 percent, obviously, very, very high. I mean there was even talk for a while there about 100 percent. Got to be some constitutional issues here. Are there not?
ELAM: There are several issues here and that's why they're saying people may come back and sue on the other end to see if they can get their money back. And really, Congress here, trying to make up the money the back way. Some people are saying if they had just gone ahead and made the legislation in the beginning correct about these bonuses, then they wouldn't have to go the back way.
COLLINS: Right.
ELAM: And some people are saying, you know what? I worked for a division that made money. What if my division actually made a profit of a couple billion dollars? How come I'm going to take that hit? And the other thing it doesn't mention, so far, is what's going to happen if they pay the TARP money back? When will this change?
But overall, the concern here is whether or not this is going to become part of tax policy and some who do examine tax policy taking a look at this and saying that perhaps they should have just let AIG go into bankruptcy because then all of these employee contracts would have been, you know, thrown to the wayside and they could have started fresh here.
COLLINS: A-ha.
ELAM: So a lot of discussion about this. And it's not going to be over any time soon. I'm sure, Heidi.
COLLINS: Absolutely not. No, it's not. And talking about setting up that precedent is very, very interesting as well.
Stephanie Elam, sure do appreciate that. Thank you.
ELAM: Thanks.
COLLINS: Secure in good times and in bad. We're looking at some careers that can weather an economic storm.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
COLLINS: They lined up by the thousands with one goal in mind. Finding work. This scene outside of job fair in Fresno, California yesterday, being repeated in cities all across the nation, it seems. 3,000 people showed up in the first hour, all of them trying to score one of the 2,000 or so jobs that were available.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I'm looking for, preferably, something in the financial field, insurance, banking and so forth.
UNIDENTIFIED FEMALE: Clerical, customer service, whatever is available.
UNIDENTIFIED MALE: Looking for anything. Warehouse, I'm looking for anything. Get me off the unemployment. I don't like this at all.
(END VIDEO CLIP)
COLLINS: California's unemployment rate is one of the highest in the nation. It jumped to 10.1 percent in January. That's the state's highest in more than two decade. Now the U.S. Labor Department reporting unemployment rose in nearly 100 percent of all of California's metropolitan areas.
A year ago unemployment was up in 63 percent of the state's metro areas.
Help still wanted. Even in a recession, there are secure careers to follow. CNN's Gerri Willis takes a look at a few of them.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: The design of the casket is an urn shape.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR (voice-over): These days Steve Kusman's (ph) job is a hot commodity. He's a funeral director and runs a school that teaches the ins and out of the funeral business.
UNIDENTIFIED MALE: This is the first semester that we're offering double sections of each class, just because the interest has increased so much.
WILLIS: Ed Rahe enrolled after getting laid off from his advertising job last year.
ED RAHE, STUDENT: It's a radical departure. I was just -- I was sitting behind a desk at a computer.
LAURENCE SHATKIN, AUTHOR, "150 BEST RECESSION-PROOF JOBS": Death and taxes are one of -- the two things that everyone says are a constant so they're not going to see a lot of layoffs.
WILLIS: Author Laurence Shatkin compiled information from the Department of Labor to come up with a pool of careers that he says are secure in good times and in bad.
The best recession-proof jobs, computer systems analysts and network administrators, teachers, physical therapists and pharmacists made the top 10.
SHATKIN: Then there are government careers. Law enforcement that has to go on all the time and that includes things like homeland security, the borders, people inspect stuff at the airports and nursing is a huge career now.
WILLIS: New York University's College of Nursing has seen a 66 percent increase in applications in the last year. Many applicants described as career changers.
BARBARA KRAINOVICH-MILLER, NYU COLLEGE OF NURSING: There has been the steady trend that comes from the business world, finance, and I think now, who knows, when you start to look at the auto industry and the loss of jobs there, that may become a next pool.
WILLIS: NYU student John Campbell earned a living as a river guide and had hoped to become an architect. Now he's thinking nursing is the better route.
UNIDENTIFIED MALE: Nursing offers a career where I had control over my financial life.
UNIDENTIFIED FEMALE: When you're matching...
WILLIS: Wedding planner Vickie Johnson isn't bothered by plunging stock options and layoffs. She's self-employed and business is booming.
UNIDENTIFIED FEMALE: We probably have, you know, 25 to 30 weddings on the calendar as of last summer and our phone is still ringing for 2010. So I mean, it's very, very encouraging that people are still getting married, they are still, you know, living that dream.
WILLIS: One key to a successful business? According to Shatkin, offering a service like weddings where customers won't cut corners.
Gerri Willis, CNN, New York.
(END VIDEOTAPE)
COLLINS: Quickly we want to get this information to you that we are just learning in the CNN NEWSROOM regarding two U.S. Navy ships, actually one a ship and one a submarine, that have collided.
Want to get the very latest from CNN's Pentagon correspondent Barbara Starr now.
Barbara, this happened in the Strait of Hormuz?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Indeed, Heidi. The U.S. Navy now just reporting this accident which occurred overnight in the Persian Gulf in this -- specifically in the Strait of Hormuz area. The Navy announcing that a U.S. Navy submarine, the USS Hartford and a U.S. Navy amphibious warship, the USS New Orleans, did collide in the Strait of Hormuz.
On board the submarine, 15 sailors were slightly injured according to the U.S. Navy. Now returned to duty. The propulsion plant, the nuclear propulsion plant on the submarine is said by the Navy to be undamaged but on the amphibious warship, the surface ship, one of its fuel tanks did rupture as a result of this accident and the Navy is reporting 25,000 gallons of diesel fuel oil were spilled into the Persian Gulf.
Obviously, the accident is under investigation. And they're trying to -- the ships are continuing to sail, presumably, going back to a port to be checked out. Heidi?
COLLINS: All right. So, obviously, no idea of quite yet how this happened. But we do talk about the Strait of Hormuz an awful lot. Can you put the area into context for us a little bit, Barbara?
STARR: Well, you know, just when you look at the map, you can see this very narrow channel which is one of the busiest waterways in the world. Everything from, you know, massive U.S. Navy aircraft carriers to dozens and dozens of very small fishing douse (ph), fishermen all up and down that coast move through there.
This is one of the busiest commerce routes for oil tankers and, politically, often very unsettled.
COLLINS: Right.
STARR: The Iranian coastline is there. People move through these waters very cautiously, very carefully. It's very unusual for this type of U.S. Navy accident at sea, Heidi.
COLLINS: Yes. And especially right there. All right. CNN's Pentagon correspondent Barbara Starr, I know you'll stay on top of it and bring us any updates as soon as you get them.
Thanks, Barbara.
Lose your job or keep your health insurance? Well, now there is a way to help more people afford it.
(COMMERCIAL BREAK)
COLLINS: More now of our "ROAD TO RESCUE" coverage. Even in if you lose your job you can keep your health insurance. You can apply for COBRA or a continuation of health insurance.
CNN's senior medical correspondent Elizabeth Cohen joining us now to separate the facts from the fiction when it comes to COBRA.
And just in case, there are some people out there who really familiar with it. Tell us what it is.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: OK. COBRA is what you get when you get laid off. You get laid off from your job, not everyone but most people, you get laid off from your job, you can keep that employer-sponsored health insurance you've enjoyed all these years. But you got to pay for it.
COLLINS: Yes.
COHEN: Your employer is not paying for it anymore. So you can keep it for a period of time, but you have to pay for it.
COLLINS: All right. Can you give us an idea of how much it costs?
COHEN: Yes. These numbers aren't pretty, but I'll give them to you.
COLLINS: Yes. OK.
COHEN: The numbers aren't pretty. All right. On average, an individual will pay, when they have COBRA, $388 per month and a family will pay about $1,069 a month. Now, remember, by definition, if you're getting COBRA, you've been laid off.
COLLINS: Yes.
COHEN: So this is a lot of money considering you don't have a job. COLLINS: Yes. Yes, exactly. Well, that's the point and that's the scary part of it.
COHEN: Yes. Right. Exactly.
COLLINS: Obviously, for a lot of people. President Obama, though, says that he's thinking about a way where he will actually be able to help some people pay for COBRA.
COHEN: Right.
COLLINS: How does that work?
COHEN: Some folks who are on COBRA are going to get a 65 percent discount on what they pay for COBRA. That is, obviously, huge. So let's take a look at what that means for a family.
So for example, a family who is on COBRA who was going to pay without the reduction $1,069 per month, with the reduction they're going to pay $374 a month. $374 versus $1,069. Huge difference. Saving of $694.
COLLINS: All right. Well, maybe we should talk then about exactly who is able to get that money.
COHEN: Right. Because not everyone is able to get that discount. So let's go through the rules about what you have to do to get that discount.
COLLINS: Yes.
COHEN: First of all, you have to have been laid off during a certain period of time, between August -- between September 1st, so after August 31st. So after August 31st until now if you were laid off you are eligible to apply for this.
Also, this is important. Your company still has to be in business. If your company went bankrupt and doesn't exist anymore, you can't even get COBRA, much less the discount. You can only get COBRA if your company is still up and functioning and employing other people. Not you, but other people.
COLLINS: Yes and that's hard because a lot of companies are just plain going out of business.
COHEN: Right. Right. And that company has to be up, operating, employing and insuring other people.
COLLINS: All right. Well, it's an option for some.
COHEN: It's an option for some.
COLLINS: And people say that.
COHEN: Absolutely.
COLLINS: All right.
COHEN: OK. Thanks.
COLLINS: Elizabeth, thank you.
President Obama is reaching out to Iran. In a video message today, the president offered Iran, quote, "The promise of a new beginning grounded in mutual respect." Today marks the start of the Iranian New Year. The message is a dramatic shift in tone from the Bush administration labeled Iran part of an axis of evil. No immediate response from Tehran.
Pirates are at it again in waters off Somalia. This time they captured a Greek cargo ship in the Gulf of Aden. Greek merchant marine officials say the ship was en route to South Korea with a load of iron. Pirate attacks off the coast of Somalia have been on the rise in recent years.
Broadway dimmed its lights last night to honor Tony Award winning actress Natasha Richardson. She died Wednesday after suffering a brain injury while skiing in Canada. Richardson's husband, Liam Neeson, and mother, Vanessa Redgrave, joined dozens of mourners at the Broadway ceremony.
Meanwhile there are new questions about the medical attention the actress received following her fall. A Toronto newspaper says paramedics dispatched to the ski slopes were turned away before they could check on Richardson.
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: To Wall Street now. The bulls are vying for the year's first back-to-back weekly gain. Susan Lisovicz is at the New York Stock Exchange with more on how the trading day is shaping up.
Hi there, Susan. Kind of means that I guess the year is off to a very slow start as if we didn't know that already.
SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Heidi. I mean, this is a rare occurrence, indeed. And we are happy to tell you that stocks are poised for slightly higher start this morning.
The Dow lost 85 points yesterday erasing nearly all of its gains from the day before. All three major averages, Heidi, are in position to record their first back-to-back weekly gains in nearly a year. So it's not only this year that's been tough.
COLLINS: Yes.
LISOVICZ: 2008, lest we forget was awfully tough if you were looking at your returns. We're watching shares of AIG once again whose shares have risen sharply every day this week. Even so, its stock trades at only $1.50 a share. It's poised to pull back today.
As for shares of Goldman Sachs, which is slated to hold a conference call with reporters today to discuss its trading relationship with AIG. You may recall the crippled insurance company said earlier this week that Goldman received nearly $13 billion in taxpayer funds. Some have accused AIG of playing favorites with Goldman.
Meanwhile, Xerox slashing its earnings target as it grapples with ever-weakening economy. The company also announced cost-cutting plans that should save up to $300 million. Xerox guiding an industry-wide slowdown in technology spending for the move.
We're also watching as the opening bell rings, Heidi, oil prices, which settled above $51 yesterday. That was the highest price of the year for crude. Right now, crude is trading around $50 per barrel. Some analysts believe oil prices may finally be climbing off their lows and expect the weaker U.S. dollar to continue to fuel the gains.
And we are seeing some very early gains in the first seconds of trading. The Dow is up eight points. The NASDAQ is up four.
And shall I also remind you, Heidi, today is the first day of spring. You're wearing a lovely spring suit.
COLLINS: Yes, I know. And so are you.
LISOVICZ: And I'm wearing pink. And the color we really want to see is green.
COLLINS: Yes.
LISOVICZ: Green for spring.
COLLINS: You got it.
LISOVICZ: Green for green arrows and, hopefully, back-to-back weekly gains.
COLLINS: Yes. All right. Well, we'll be watching really closely come the close later on today.
Susan, thank you. We'll check in later on.
LISOVICZ: You're welcome.
COLLINS: The economic fix and the man who is supposed to have the solution. It's a one-on-one with treasury secretary Timothy Geithner.
(COMMERCIAL BREAK)
COLLINS: Timothy Geithner, the president's point man on the economy, was once praised by Wall Street but he's had a string of bad weeks since taking office and some lawmakers are all but calling him for -- to step down.
Ali Velshi takes a look at what makes Geithner tick.
(BEGIN VIDEOTAPE) ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT (voice-over): Forty-seven-year-old Timothy Geithner looks younger than his years, but the stress is starting to show. He says his eyebrows are turning gray.
TIMOTHY GEITHNER, TREASURY SECRETARY: We've got a very ambitious agenda we're trying to do in weeks and months what most governments do in years, and that's because we are completely committed to doing what it takes.
VELSHI: On the job for less than two months, nothing is going as expected. The onetime president of the New York Federal Reserve Bank is beating back charges that he's gone soft on his old Wall Street pals, turning a blind eye as culprits of the financial collapse continue to profit.
GEITHNER: I think the American people are just enormously frustrated and angry that they find themselves in this position. We're very focused, again, on making sure that the assistance we're providing doesn't go to unduly benefit the executives that helped get us in this mess.
VELSHI (on camera): How do we deal with what seems to be tone deafness on Wall Street? How come these announcements come out -- how are people so divorced from the reality of how angry Americans are about this?
GEITHNER: It is enormously damaging to everything we're trying to do. You know, all it does is feeding this great loss of confidence and the quality of judgments about individuals presiding over these financial institutions and, you know, they're going to have to demonstrate a greater sense of responsibility going forward.
Is it going to earn back the confidence of the American people? But you're right, it's very damaging and I completely share the basic frustration across America about what's gotten us to this place.
VELSHI: And the president has said that he'd like you to use either legal means or leverage. You've got leverage because in so many cases, these companies are still getting more money from the government.
GEITHNER: Right. We're very focused on, again, making sure that the assistance we're providing doesn't go to unduly benefit the executives that helped get us in this mess.
VELSHI (voice-over): These days when Geithner is not on offense...
GEITHNER: It's time now for us to move together and to begin to act and put in place a stronger (INAUDIBLE).
VELSHI: ... he's playing defense.
GEITHNER: I was not secretary of the Treasury until about six weeks ago. VELSHI: Constantly pitching his plan, selling it to business leaders here in the U.S. to world leaders last week in London.
UNIDENTIFIED MALE: Thank you.
VELSHI: And twisting arms on Capitol Hill.
GEITHNER: The most prudent thing to do in this case is to move aggressively. If you wait and risk doing too little, then the recession will be deeper and longer. We're going to face higher deficits in the future, the economy is going to be much weaker in the future. And I think, again, most people across (INAUDIBLE) the spectrum agree on that now.
VELSHI: Geithner is working 15-hour days, dawn to dusk. His wife and two teenagers staying back in New York. That's where he was born. But Tim Geithner grew up all over. India, China, Thailand, and Japan.
GEITHNER: My father was a Navy pilot. Spent his life working on development issues. My mother is a teacher, a piano teacher. Because of them and their work, I grew up outside of the United States. And I learned early on as a kid really the enormously important role that America played in the world and decided very early on watching America through the eyes of the world that I wanted to work for my country.
VELSHI: And right now, Tim Geithner's country is mad.
GEITHNER: You know, the financial crises are brutal and indiscriminate in the pain they cause, and they have this basic tragic unfairness. That people were careful and responsible in their personal and professional judgments are being damaged by the actions of those who were less careful and less prudent.
VELSHI: Geithner is saddled with a big job and not enough staff. Several key positions remain empty at Treasury including his deputy. That's slowing him down as he races to clean up the toxic assets infecting the nation's top banks.
GEITHNER: We've already started to make sure that the banks have access to the kind of capital they need to provide lending in a recession. And we're going to -- you'll see us move very quickly in the next few weeks to lay out a plan to help deal with these real estate related assets that are the core of the financial system.
VELSHI (on camera): How much money do you think that's going to take? The number $2 trillion is kind of out there.
GEITHNER: Yes, I wouldn't look at those numbers again. The important things it that Congress has given us a substantial amount of resources and we're going to direct that where it's going to be most effective in getting credit flowing again. And you're going to see us again move, continue to move very, very quickly.
This government has done more in weeks than you see most governments do in months and years. And that's because of the depth and severity of the problems we inherited and because, again, our judgment is the quicker we move, the more aggressive we are, the quicker we're going to bring recovery back on track.
(END VIDEOTAPE)
COLLINS: CNN Saturday and Sunday night, Ali Velshi and the CNN money team search for the truth inside the AIG scandal. See what they found in "AIG, FACTS AND FURY." CNN and Sunday -- Saturday and Sunday night, that is, 8:00 p.m. Eastern.
Another busy day for the president after his economic briefing this morning. The president will meet with the National Conference of State Legislators on ways to jump-start the economy.
Later in the afternoon, he'll meet with local and state leaders, including California governor Arnold Schwarzenegger to discuss infrastructure projects. And then a little bit later the Newspaper Publishers Association will present the first couple with the Newsmaker of the Year Award.
COLLINS: A group of veterans from Texas, Rio Grande Valley, hope to get President Obama's attention by marching 250 miles to San Antonio. That's the distance vets living in the valley have to travel to get medical treatment. The vets hope to convince Congress to build a hospital in their area.
(BEGIN VIDEO CLIP)
MIKE ESCOBEDO, MARINE CORPS VETERAN: It's only fitting that this government for which they bled for, in turn, provide the best health care that this country can provide.
UNIDENTIFIED MALE: It's a long way, especially when you have some injuries and you're about 65 years old and you can only drive about 20 minutes and stop every so often.
(END VIDEO CLIP)
COLLINS: The vets hope to get 100,000 signatures for their petition.
Another issue veterans are dealing with is finding work. CNN's Barbara Starr joining us now live from Washington with a look at some new numbers on who's trying to help.
Hi there, Barbara.
STARR: Good morning, again, to you, Heidi. New evidence this morning that America's veterans, especially those who have fought in Iraq and Afghanistan, being very hard-hit by the unemployment crisis.
In just about 20 minutes, the Bureau of Labor Statistics will release the latest data. We have a sneak peek at it. Let's take a look. For last month, February, 11.2 percent of veterans who have served since 9/11, essentially the Iraq and Afghanistan war, 11.2 percent unemployment rate. How does that compare with others? Well, 8.1 percent for all veterans of all wars of all ages. That's the overall veterans population. How does it match up against non-veterans in that same age group at 18 and over? 8.8 percent. So more than 11 percent of the veterans who've served in the latest wars, unemployed, looking for work -- Heidi.
COLLINS: Yes. And that transition, you know, from the military life to the civilian life can often be a really tough thing to do. We've done several segments here, Barbara, about different organizations who are trying to jump in and help. We have companies like Bradley Morris who helped with that, finding jobs when they become civilians. Hire A Hero, another one. Just to name a couple.
What about the corporations, though? Are they ready? Are they making these hires out of this military pool?
STARR: Well, you know, some are beginning to but it's exactly what you said, Heidi. A lot of people jumping in trying to see how they can get more information to veterans about what's out there, what's available to them, and how veterans can go about looking for a job.
This morning, we want to bring you another exclusive item. This -- I want to put up on the screen for everyone a new Web site that is about to be unveiled by CareerBuilder.com, one of the most popular job sites in the country. Let's leave this up and take a look at it for a minute.
This is www.missiongethired. It's a micro site you can access off CareerBuilder.com starting next month. And what they tell us is they will have a number of links for veterans offering job tips, how to do a resume, how to make a first impression, job alerts for veterans, what is out there in the job market specific to a veteran's interest. Monthly newsletters and who are the veteran friendly employers?
COLLINS: Yes.
STARR: Who's out there that might be willing to hire them. Because think of it this way, Heidi. Somebody who's just come back from a combat tour in Iraq and Afghanistan, they're trained maybe as an infantryman, a rifleman, they get out of the military, they come home, how do they translate those skills into the civilian job market, especially when things are so tight? Heidi?
COLLINS: Yes. A lot of it, too, it seems from what we've heard from these corporations, is about the actual individual and what type of person goes into this service. Their job ethic and their morals, a lot of times. You know, they'll say that's why they make sort of an interesting pool of employees.
So we'll stay on top of that. And I'd love to hear more about how many hits that site gets as we move forward.
CNN's Pentagon correspondent Barbara Starr. Thank you, Barbara. STARR: Sure.
COLLINS: It's a scam. Thousands of people are having their identity stolen first and then losing their tax refunds.
(COMMERCIAL BREAK)
COLLINS: All this week, we've been trying to give you the help you need for these tough economic times. So now it is time for our "Deal of the Day." We talked about tips for entertainment, home improvement and traveling.
Today, get a great meal for only a couple of bucks. The Web site, Restaurant.com, lets you buy gift certificates for up to $25 for as little as $2. All you have to do is enter your zip code and find restaurants in your area and then be sure to read the fine print.
You might not be able to use these on a weekend or to buy alcohol with, but it's still a pretty good deal for dining out. And that's at www.restaurants.com.
I'm waiting for one more little ding there.
Thousands of taxpayers will not be getting a refund this year. It's not because they owe Uncle Sam, though. It's because someone stole their identity and then their checks.
Abbie Boudreau from CNN Special Investigations Unit has the story.
(BEGIN VIDEOTAPE)
ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT (voice-over): Brenton King is a 25-year-old father and husband. He says he was only 17 when someone stole his wallet and his identity.
BRENTON KING, ID THEFT VICTIM: I started receiving letters from the IRS, and the letters were asking me to pay taxes for a lot of income.
BOUDREAU: King says for years, at least five people used his Social Security number. And since the criminals earned income on his number and never paid their taxes, the Kings can't get any tax refunds from the IRS or their government stimulus check.
JENNIFER KING, VICTIM'S WIFE: We want to put that in the bank. We want to be able to put money down on a home.
BOUDREAU: The Federal Trade Commission says more than 50,000 Americans have fallen victim to this type of identity theft. It's a way for criminals to file false tax returns so they can get refunds or evade taxes altogether.
J. KING: From before we even file our taxes, we know we're not going to get anything back. That's really frustrating. BOUDREAU: King says when he went to the IRS to report the problem, no one believed that he was the real Brenton King. Senator Chuck Grassley says he feels the IRS is not doing enough.
SEN. CHUCK GRASSLEY (R), IOWA: They aren't going to prosecute and that's not very helpful. It sends a signal that you get a free pass if you're doing identity theft using IRS instruments.
BOUDREAU: National taxpayer advocate Nina Olson helps taxpayers resolve problems through the IRS.
NINA OLSON, NATIONAL TAXPAYER ADVOCATE: We see a lot of activity now because, clearly, folks who are trying to perpetrate a fraud have to get their claims in early before the true taxpayer files their return.
BOUDREAU: Olson says there is help for the Kings through her office. Brenton King says he just wants his life back and that stimulus check.
B. KING: The fear is that it will happen for the rest of our lives.
BOUDREAU: Abbie Boudreau, CNN, Atlanta.
(END VIDEOTAPE)
COLLINS: Kinder and gentler IRS? Well, tomorrow the federal tax agency will offer some free tax preparation assistance at hundreds of sites across the nation. People who earn $42,000 or less are eligible for that service. In addition, the IRS says it will work to set up payment option plans for those who don't have the money right now in order to pay their tax bills.
Young, eager workers. Everybody wants to hire them, right? Well, not these days. Brutal employment realities for people in their teens and 20s.
(COMMERCIAL BREAK)
COLLINS: CNN correspondents are working on several developing stories today, all related to you and your money.
ELAM: I'm Stephanie Elam in New York. The government's data on mass layoffs from last month are due out any minute now. I'll break down the numbers at the top of the hour.
LISOVICZ: I'm Susan Lisovicz at the New York Stock Exchange where we could see the first back-to-back weekly gains for the three major averages in nearly a year. I'll tell you why at the top of the hour, Heidi.
MALVEAUX: I'm Suzanne Malveaux at the White House, where President Obama is engaging Iran. He is also trying to put the AIG bonus controversy behind him. I'll have more of that at the top of the hour. COLLINS: All right. Thanks so much, guys, appreciate that. We'll be listening in to all of those stories. Plus, we're going to be bringing you a snapshot of what many people are facing, and that is unemployment. Three people from various parts of the country share their stories, coming up next hour.
(COMMERCIAL BREAK)
COLLINS: Millions of Americans are out of work, but one group in particular is dominating that list of the unemployed, and that's young people. They're new to the workforce and facing fierce competition from their more experienced counterparts.
Here's CNN national correspondent, Jason Carroll.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN NATIONAL CORRESPONDENT (voice-over): Less than a week ago, Mark Stannaford (ph) was busy at work as a market researcher. That was then.
UNIDENTIFIED MALE: They cut about 90 people, and I was one of them.
CARROLL: At 27 years old, he found himself jobless, and with few options.
UNIDENTIFIED MALE: With severance, I have about a month of that, and then I'm planning to be on unemployment after that.
CARROLL: Torrey Pagos (ph) may be joining him very soon.
UNIDENTIFIED FEMALE: I'd like to get a job, but, I mean, I'm sure you're aware, it's not easy.
CARROLL: The 23-year-old had just started a career in merchandising at Macy's. A career that may be stalled.
UNIDENTIFIED FEMALE: In February, the company laid off 7,000 employees, and my job was eliminated. So I -- I'm done probably the end of June.
CARROLL: Both are examples of who may be hardest hit during the economic downturn. The highest number of unemployed are the country's young workers. Nearly 3.7 million young people ages 16 through 29 are currently out of work.
The February unemployment rate for the youngest workers is 15.5 percent compared to the overall unemployment rate of 8.1 percent.
BRENT RASMUSSEN, COO, CAREERBUILDER.COM: The down market is tougher than it's been in the past. Probably tougher than it's been in the last 20 years, quite frankly, for college graduates right now if they do not have the experience that many workers have in the market today. CARROLL: Career experts say, in some cases, older employees who have experience, and who would normally retire during strong economic times are delaying retirement, leaving less openings for new workers.
RASMUSSEN: Don't spam the employment community. Make sure every single cover letter and resume is customized. Make sure you get involved.
CARROLL: Both Mark Stannaford and Torrey Pagos are staying positive about finding a new job.
UNIDENTIFIED FEMALE: I'm optimistic about it, but, you know, that may be a little naive. I haven't been jaded enough.
CARROLL: If it doesn't work out, both say they just might go back to school.
(on camera): Do you think maybe if you were to go to school that might give you that sort of buffer period of time until the economy...
UNIDENTIFIED MALE: Yes, that's the hope.
CARROLL: The current jobless situation with young people can have dire implications for the country's future, because those young men and women who stay unemployed for long periods of time lose valuable experience and training they would have gained by working. It then becomes very difficult to make up that ground.
Jason Carroll, CNN, New York.
(END VIDEOTAPE)
COLLINS: Out of a job and running out of insurance. How do you cope? What can you do? We'll talk with three people who are facing just that.
AIG's executive bonuses are getting some executive attention on the "Tonight Show." President Obama told Jay Leno he was stunned to hear about the hefty payments of the bailed out insurance giant. He says they raise moral and ethical problems. The president vowed to try to recoup the money for taxpayers.
Congress already taking action to get some of the money back. Next week, the Senate is expected to consider a bill imposing a 35 percent tax on any bailed out company paying bonuses. Executives would also be hit with a 35 percent tax.
Yesterday, the House passed a more punitive bill placing a 90 percent tax on large employee bonuses that companies that received billions in government aid.
An upscale neighborhood in Ecuador's capital is now a disaster site. A small military plane crashed into an apartment building in foggy weather yesterday creating a huge ball of fire. Officials say all five people on board were killed, along with two people on the ground.
