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Report Notes 20 Investigations of TARP Fund Use; President Obama Hosts Jordan's King in Oval Office; Israel Marks Holocaust Memorial Day; Experts Say Home Sales Have Hit Bottom; "Green" Car Companies Show Off Wares on Capitol Hill; Disney Debuts Animated African-American Princess in New Movie
Aired April 21, 2009 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Well, your money front and center today on Capitol Hill. This hour, lawmakers are expected to be asking some pretty tough questions of the Treasury secretary, Timothy Geithner. There's a live look at the room now. They are just getting set. The focus is going to be the government bailout of failing banks.
It comes as the program's top cop reveals that 20 different criminal investigations are now looking at how that money is being spent.
Then, in a separate hearing we're watching today, lawmakers are asking the question: too big to fail or too big to save? Economists will testify on the failures of large financial institutions and how the government has responded.
And also, President Obama's nominee for health secretary is expected to clear a key hurdle today. The Senate Finance Committee expected to approve Kathleen Sebelius for the HHS secretary. A vote by the full Senate could come within days.
Let's get back to those bank bailouts. Get a closer look here. About how that $700 billion is being protected.
Our CNN personal finance editor Gerri Willis joins us now. How it's being protected. Listening to this report, it doesn't sound like it's being protected too well.
(LAUGHTER)
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, it's very controversial, yes. Amazing. You know, this morning, Tim Geithner, the Treasury secretary, sent a letter to Elizabeth Warren who leads that panel, giving her an update essentially on the numbers.
He said $109.6 billion of the TARP money is left over. What's more he said that the government will get another $25 billion from banks as they start to repay this money. That's his update on the numbers.
But I have to tell you, you know, T.J., you've got it absolutely right here. There are probably going to be some fireworks in this hearing today. Mainly because of the report that we've been looking at overnight, this 250-page report from the nation's top cop on the TARP money. But, yes, this is going to be very interesting to watch.
HOLMES: Interesting to watch. And this panel, and their name is COP, the Congressional Oversight Panel, as well, a lot of cops there. But it steals scenes. He makes some recommendations in this report as well. And not just saying what's being done wrong but also what needs to be done right.
WILLIS: We're talking about Neil Barofsky here. He is the top cop on the TARP. He came out with a 250-page report overnight, saying, hey, you know, there are some things here that we really need to look into. There's a real problem. I've got 20 criminal investigations going on. Six audits.
Let's take a look. For example, whether the government's share, interest in these financial institutions that they got as a result of their investment, these are our taxpayer dollars here, whether it's being fairly valued? Are we actually getting what we expected?
And what about the risk of fraud in those consumer lending programs out there, the mortgage rescue programs out there? He's also worried about conflicts of interest in the toxic asset programs. You're wondering, what is that? What does that mean?
Well, it's what they call a PPIP. It's an investment program for public and private investors. He's saying what about conflicts of interest between these banks and the private investors who might invest in some of these toxic assets taking it, in effect, off their books, making those banks safer?
He says there are just all kinds of opportunities for fraud here. Some of which he thinks he's snipping out and others which he's actually looking for. But this report, this 250-page report really setting a fire under this hearing today. And as you know, the head of this commission, Elizabeth Warren, has been no shrinking violet when it comes to complaining, talking about what's going on wrong with the TARP.
She's had very sharp criticism, and in fact, the oversight panel itself is sometimes been divided over whether she's been too controversial, too negative taking a look at these dollars. On the other hand, the taxpayers are all saying we're concerned about our money. We're worried about our money. How it is being used?
And in the wake of those, you know, incredible performance numbers coming out of the big Wall Street investment banks recently, a lot of Americans out there shaking their heads and wondering, you know, just what is being done with this money? We'd love to know.
HOLMES: Yes. A lot of people were shaking their heads and wondering why is there no more transparency about how our money is used. Maybe we'll get some answers today.
Gerri, thank you.
WILLIS: We will. HOLMES: And we will take a live picture now. I understand that the man of the hour has just made his way into the room. Timothy Geithner, the Treasury secretary, has made his way in. Is this my live picture here that I am seeing? Already, and as we see and we often see in many congressional hearings, and special ones that come about this bailout money and how Congress has been using taxpayer money, we see protests.
That appears we have some already before this thing even gets started. There is a sign that said, "Where's our money?" They are standing up. We do not know how long. There's another one, "Give our money back."
We don't know how long these protests will be allowed to stand, how long this will be allowed to go on. Oftentimes we do see protesters escorted out of those rooms by many of the chairs of these committees, who will order them to be taken out if they become a little too disruptive.
But right now, looks like a silent protest, if you will. But still making their message being known even if their voices aren't being heard right now. Again, this is the congressional oversight panel which was created to oversee how Congress was going to using and how Treasury is actually was going to be using the bailout funds.
They will be coming out and then as a hearing from Timothy Geithner and some tough questions expected. We'll be monitoring this live. Timothy Geithner expecting to make a 22-page opening statement. But we'll be monitoring his statement and the Q&A and we'll dip back in as we see that we need to do so.
We'll move on to the troubled automaker Chrysler now struggling to survive. So why would its financing arm turn down money from the federal government? A source familiar with the matter tells CNN that the company would not accept government limits on executive pay.
Chrysler Financial has the same majority owner as the automaker that already borrowed $1.5 billion from the TARP program. But the loans were made under less strict limits on executive pay.
CNN's Susan Lisovicz taking a closer look at this story for us coming up at the bottom of the hour.
Let's turn to General Motors now. An update on that company. The nation's largest automaker ramping up efforts to qualify for more government loans. Yesterday it began firing some 1600 white-collar workers to slash costs. Also revealed that it spent $2.8 million this year on, what? To lobby federal lawmakers.
Let's check in one more time on Wall Street. We're keeping an eye on things there. You see there at the bottom of your screen, the Dow down off about 30 points right now. Not as bad as it was yesterday. But certainly right now below that all symbolic 8,000 marker right now. We will keep an eye on it.
So this hour at the White House, President Obama hosting one of Washington's most important allies in the Middle East. His talks with King Abdullah of Jordan expects to focus on the stalled Middle East peace process.
Our Elaine Quijano joins us now from the While House. And Elaine, you said you saw King Abdullah just make his way in right behind you a short time ago.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: That's right. Moments ago, in fact. We've got the video to show you here. The king was actually escorted, if you will, by Vice President Joe Biden. He was walking over, obviously, on his way to the West Wing to meet with President Obama.
Now King Abdullah is the first Arab leader to meet with President Obama in the Oval Office. And this is really going to be an opportunity for the president to send some clear messages about what he wants to see on all sides. But also, of course, an opportunity for King Abdullah to talk about what he would like to see the U.S.' role be in the Middle East peace process.
But for the president, President Obama, of course, he's also having the chance here to demonstrate to the Arab world that he is really committed to this idea of a two-state solution. Israel and Palestine living side by side in peace, something he's already voiced support for.
But it's not going to be easy, of course. This is a problem Middle East violence that has plagued many a president before him. And now there is some serious questions about whether or not the new government of Israel is really committed to a two-state solution.
And, of course, on the Palestinian side, there are complication there as well. There is a divided Palestinian leadership. So it's a difficult landscape for President Obama and for King Abdullah as well.
But you can bet, T.J., a lot of people will be watching this. People in the region to see what exactly the approach will be under this new U.S. president -- T.J.
HOLMES: All right. Elaine Quijano for us from the White House on this day 92. Elaine, we appreciate you so much.
So as you just heard, that is on the schedule for day 92. The president welcoming King Abdullah of Jordan to the White House.
Also today, at 2:00 p.m., he'll give the commander in chief trophy to the Navy football team. That trophy goes to the military academy with the best record each season. And at 4:00, he'll sign Senator Ted Kennedy's Serve America Act. That provides funding to promote volunteering.
A Somali teenager accused on the attack on the Maersk Alabama expected to appear in federal court in New York today. The suspect was taken to a federal detention facility last night. As you see there, he was surrounded by law enforcement officers. He also wore a smirk on his face there. The suspect had surrendered and was aboard the USS Bainbridge when the three pirates holding the cargo ship captain were killed by Navy SEALs.
Sirens sounded, traffic stopped and so did everyone on the streets. This is the day Israelis pay tribute to all who died in the Holocaust.
CNN's Paula Hancocks joins us now from Jerusalem. Paula, set that scene for us.
PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, T.J., it's actually a very powerful scene. I was standing out on the streets in central Jerusalem when that siren sounded. And air raid siren, very loud. And every car stopped. People got out of their cars and stood next to the car bowing their heads.
People stopped in the middle of the street, stopped talking, there was silence for two minutes. And it is very symbolic and it is very powerful. And that has been happening all across the country of Israel.
Now we know that the theme for this year's Holocaust Memorial Day is children in the Holocaust. It's estimated that around 1.5 million of the six million Jews killed during the Holocaust were children. And within many different ceremonies throughout the day, the most important, the main ceremony at the Hall of Remembrance in the Holocaust Museum.
Now this is significant because ashes from the concentration camps, from Holocaust victims, are actually buried in a tomb beneath that Hall of Remembrance. So a very somber day here. A very symbolic day. And everybody remembering those who died during the holocaust. T.J.?
HOLMES: And Paula, to take a turn here, if you talk about the Holocaust and the remembrance is there, just yesterday it was Iran's president Mahmoud Ahmadinejad who is lobbing some more of the heated remarks towards Israel and its government there. What has the reaction been to Ahmadinejad essentially calling it a racist regime there in Israel?
HANCOCKS: Well, to be honest, T.J., there hasn't been a huge amount of surprise. This is the reason that Israel said all along it wasn't going to go to this event because it thought that the Iranian president would have a platform to make anti-Semitic remarks.
Now just to give you an idea. Here's one of the newspapers we have. This is the most popular over here in (INAUDIBLE). You've got a picture of the Iranian president with his hand over his mouth and the headline saying, "Defeated."
So certainly, many of the columnists here, many of the newspaper articles are saying finally most of the world knows what President Ahmadinejad is like. They believe he is the same as Israeli officials believe he is. Of course, Israel believes that Iran faces -- threatens the very existence of Israel with its nuclear ambitions. And it is hopeful that the number of delegation that walked out after Ahmadinejad called Israel a racist regime now understand the fears that Israel has. T.J.?
HOLMES: All right, Paula Hancocks for us from Jerusalem. Paula, thank you so much.
We turn now to a case that horrified parents everywhere. A young child strip-searched at school. Six years later, the Supreme Court weighing in.
(COMMERCIAL BREAK)
HOLMES: Well, it is back to court for Illinois's ousted governor Rod Blagojevich. At issue here is whether he can dip into his campaign fund to pay his lawyers. He also wants permission to leave the country. Well, he wants to go to Costa Rica. Why? Vacation. He wants to take part in a reality TV show there.
He has pleaded not guilty to charges he tried to profit from President Obama's old U.S. Senate seat.
This hour, the nation's highest court hears the case of a young girl strip-searched at school. Savanna Redding is her name, and she was 13 at the time when officials at her school suspected she was hiding a couple of pills.
Now, they searched her from head to toe. No pills were actually found. Now she's 19. She says she will never forget that humiliation.
(BEGIN VIDEO CLIP)
SAVANNA REDDING, STRIP-SEARCHED AT SCHOOL: Before it happened, you know, I loved school. I loved everything about it. You know, I had a 4.0 GPA, honor roll. And now -- well, afterwards, I never wanted to go to school again.
(END VIDEO CLIP)
HOLMES: Redding's attorneys say the school violated her Fourth Amendment right, which prohibit unreasonable searches and the school district argues the search was, in fact, justified because another student had accused Redding of peddling those pills.
Well, tomorrow the high court will a case which would also impact hiring practices. The plaintiffs, firefighters. Their charge, reverse discrimination.
Here now, CNN's Mary Snow.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): They've become known as the New Haven 20. Nineteen of these Connecticut firefighters are white, one is Latino. They say they were denied promotions because of their race and the lawsuit against the city will now be decided by the U.S. Supreme Court which will hear the case Wednesday.
FRANK RICCI, LEAD PLAINTIFF, NEW HAVEN, CONNECTICUT, FIREFIGHTER: We undertook this action for firefighters cross the country and for public safety.
SNOW: Frank Ricci and others took a promotional exam in 2003. When the results came back, the city of New Haven disqualified them because none of the black firefighters who took the exam would have been promoted.
The city's attorney says the tests were flawed.
VICTOR BOLDEN, ATTORNEY, CITY OF NEW HAVEN: When you have a test that suggests severe racial impact, as this one did, it suggests that perhaps everyone didn't have an equal opportunity to succeed on the exam.
SNOW: But the attorney for the New Haven 20 firefighters says the city's move violates the Constitution.
KAREN TORRE, ATTORNEY FOR FIREFIGHTERS: The government is not supposed to tell any citizen that he or she is either going to get something or be deprived of something because of the color of his skin or his ethnicity or gender or any other irrelevant factor.
SNOW: Gary Tinney, a lieutenant for New Haven's fire department, says he never got his exam results but he wants to see promotions based on skills beyond written tests such as...
LT. GARY TINNEY, NEW HAVEN FIREFIGHTER: Job performance, you know, community service, being able to interact with the diverse community.
SNOW: And the high court's decision will stretch far beyond New Haven.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: This is a hugely significant case because it begins to answer the question of whether race will be allowed to be used at all by government in affirmative action, in employment, in education and admissions, anywhere at all.
SNOW (on camera): And Wednesday's dispute is just one of several involving civil rights issues going before the high court. Among some of the other cases being argued is one involving voting rights and another involving education for non-English speaking students.
Mary Snow, CNN, New York.
(END VIDEOTAPE)
HOLMES: He's a medical student with a bright future. Now under the glare of suspicion. Being charged with a murder that may be linked to Craigslist. (COMMERCIAL BREAK)
HOLMES: A 22-year-old medical student with no criminal record right now is awaiting formal murder charges. Boston police are calling Philip Markoff a predator. And they say he may have used the online site Craigslist to target his victims.
CNN's Mary Snow outside a Boston courthouse now.
And, Mary, have they given us any indication of why, any motive, for why he might have been doing this?
SNOW: They haven't, T.J. And authorities are making it very clear that they do not want to talk about any of the details, saying that they will be revealed in the arraignment and that is expected around noontime Eastern.
The D.A.'s office is saying that it has made it at noon in order for family members of the victims to be able to be present at today's arraignment.
As you mentioned, 22-year-old Philip Markoff, who is in his second year at Boston University Medical School, is being arraigned on a number of charges. But he's also being charged with the murder of Julissa Brisman.
Now, authorities say Julissa Brisman had advertised masseuse services on Craigslist. She was murdered a week ago today at a hotel in Boston. And authorities say that another woman four days before that had been attacked. And they say that Markoff will be charged with attempted robbery and kidnapping in that case. It was a woman, again, who advertised on Craigslist.
Now authorities say that they believe that Markoff may be involved in other cases involving Craigslist including one in Rhode Island that they are now investigating. And as you mentioned, the police commissioner is saying that he was preying on women who were in a vulnerable position.
The D.A. is asking if there any other victims to come forward. And, you know, the police had been looking for him. They had given out surveillance video and he was taken into custody yesterday. T.J.?
HOLMES: All right. Mary Snow for us in Boston. Mary, we appreciate you and despite what police may be saying about Markoff and why he may have been doing to these women in his personal life, there is another woman in his personal life that is pretty happy with him and planning to marry him come August.
This is a Web site here he and his fiancee set up detailing their plans for their wedding. ABC's "Good Morning America" aired an e-mail from Markoff's fiancee and in it she says police have got the wrong man and claims Markoff was set up.
Obesity, not just a threat to your health but also the health of the planet. That's according to researchers cited in today's "Daily Telegraph." They say that food production is a big factor in global warming. So they've concluded that the more you eat, the more you affect climate change.
The article pins a lot of the blame on livestock production because it creates so much methane as we know. And nearly one in five U.S. kids age 4 years old are considered obese. That is from Ohio State University, a study they did there.
Researchers also found obesity twice as common in American Indian and Native Alaskan children as in white and Asian children.
Reporter Jon Jordan of affiliate KWTV looks at what all parents can do to keep their kids in shape.
(BEGIN VIDEOTAPE)
JON JORDAN, KWTV REPORTER (voice-over): In Native American tribes, there is a growing problem.
BLAYNE ROUNDTREE, KICKAPOO YOUTH COUNCIL: It's rapidly growing. Just continually spreading all throughout the Indian country.
JORDAN: A new health study shows Native Americans have the highest percentage of obese children. Blayne Roundtree with the Kickapoo Youth Council has seen the problems firsthand and the reason why he is stressing the importance of a healthy lifestyle to his peer.
ROUNDTREE: If we don't do anything now, we feel that there won't be anything left for us to do in the future. We have to address this now.
JORDAN: But the study shows obesity is a problem affecting children of every race. The study says there are more than half a million 4-year-olds now struggling with obesity.
DIANE COOK, LICENSED DIETITIAN: In the last 20 years, 30 years, it's really increased.
JORDAN: Diane Cook, a licensed dietitian, says there are many factors for why more and more children are becoming obese but one of the big ones, she says, are the parents.
COOK: Children eat the way their parents do. So parents have a very important role in helping their children make healthy choices and being at a healthy weight.
JORDAN: Cook says if nothing is done, studies have shown obese children are more likely to be obese as an adult. A reason, she says, the issue can't continue to be ignored.
COOK: It's very important to address it, try to prevent childhood obesity and get on top of it early.
(END VIDEOTAPE)
HOLMES: And besides getting your kids to eat healthy foods, dietitian Diane Cook suggests making sure your kids get at least one hour of physical activity every single day.
Well, it could be just a matter of time before veteran diplomat Christopher Hill becomes ambassador to Iraq. But one senator says he can't be trusted. We'll tell you who's calling him a liar and why.
(COMMERCIAL BREAK)
HOLMES: We are expecting some tough questions this morning on how your money is being spent.
Let's take you live picture there on the right. This hour the treasury secretary, that's not him, but Treasury Secretary Tim Geithner focusing on the bank bailouts. And a watchdog that the program says 20 criminal investigations now looking into how that money is being spent.
That is Richard Nieman, who is a superintendent of banks for the state of New York, who is right now making a statement. He is a member of that Congressional Oversight Panel, make up of five folks who have been looking at how that bailout money is being spent.
Also on Capitol Hill, a joint economic committee, they are asking the question too big to fail or too big to save? Economists there, you see some of them lined up. They are testifying on the failures of large institutions and how the government has responded.
Well, Uncle Sam has been lending a helping hand to the U.S. auto industry, providing billions of dollars in aid. But Chrysler's financing arm now says it doesn't want the government's money.
Susan Lisovicz on the floor of the New York Stock Exchange to explain.
Yes, it seems like everybody wanted the government's money there for a while. Now nobody wants it. What is this about?
LISOVICZ: Well there, because it comes -- that government money, T.J., comes with strings attached. And that is what we understand why Chrysler's financing arm doesn't want to take it.
"The Washington Post" puts that government offer at $750 million. Chrysler Financial does just what you think it does. It provides financing for auto loans. It has already received $1.5 billion from Uncle Sam, but that's before limits were in put in place.
Chrysler is a privately held company. We're going to tell you what the publicly held companies are doing now, at least for the major average. The Dow right now off 36 points after dropping nearly 300 yesterday. The Nasdaq is up. It's up three points -- T.J.
HOLMES: OK, let's head back to Chrysler here for a second. Chrysler Financial, are they just making it harder for themselves down the road if they are standing up and saying, we don't want your money after, you know, all these companies were coming begging for a little while? LISOVICZ: Well that, would seem to be logical question, T.J. But Chrysler Financial maintains it has adequate funding. Now, if you're getting the government loan, and you're going to the private sector for loans, you're going to pay more in the private sector.
But guess what? Right now, there's not that much need for auto financing. Unfortunately, that's a separate issue. And that is hurting the overall automotive industry. But they've got other issues to deal with. And that is, if Chrysler doesn't reach a deal with Fiat and its union soon, it could be forced into liquidation. So, that's a whole other issue altogether -- T.J.
HOLMES: Yes, and we're talking about Chrysler here, but Chrysler is not alone. There have been some other entities who are saying we don't want the government money either.
LISOVICZ: Yes. And specifically chief among them, the banking industry, the biggest recipients of TARP, no question about it. Goldman Sachs says it wants to pay back the money as soon as the government says it will take it. In fact, Jamie Dimon of JPMorgan Chase said last week that having -- being a recipient of TARP is like a scarlet letter.
They want to get rid of it. Why? They want to be able to run their companies as they see fit. And yes, compensation a big issue for them because their chief assets leaves every day at the end of the day. It's people that they employ. So, it's something that's very important to them is what they pay their employees. And, of course, their pay scales are better than a lot of other industries', T.J.
HOLMES: Well, they are showing just how important that is to them. Susan Lisovicz on the New York Stock Exchange for us. Thank you as always.
LISOVICZ: You're welcome.
HOLMES: We will look ahead now to two key reports this week that may provide some clues on the health of the housing market. Could this be the beginning of a bottom in this hard-hit area?
Here now with a closer look, CNN's finance editor, Gerri Willis. Gerri, it seems like we are always looking for a bottom here. But these are two of the probably most important things for confidencewise. One is the unemployment number, but also the housing, the home prices. So, do we have some good news in this area now?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, you know, T.J., stability in the housing market, it's the key ingredient for an economic recovery from this recession. And there are some glimmers out there, some signs that things could be getting better. First off, sales started to strengthen in February. Existing home sales were the highest in six years.
You know, home buyers are starting to get lured back in with tax credit that luscious $8,000 tax credit, rock-bottom mortgage rates. And home prices are leveling off in some cities. In fact in Jacksonville, Florida, Dallas, Texas, affordability is up. Of course, foreclosures are still at 24 percent since last year. And they continue to weigh on the market.
I want to tell you, T.J., I talked last night to probably one of the most important economists in the arena, Mark Zandi at Moody's Economy.com. He is moving up his time frame for recovery. He says right now in terms of home sales, we're at the bottom now. He says in terms of home prices, we'll be at the bottom at the end of the year.
Now, keep in mind that only a few months ago, he thought the bottom was going to come next year, 2010. So, he's shortening his time frame for recovery right now. That's good news. He's probably has access to the best database on housing in the country, arguably. So, he's an important voice to listen to when you're considering where the housing market is going.
HOLMES: Well, he has access to the best data, and you have access to him, so that is a good thing there, Gerri. But for so long, people are wondering, what do they do with their homes? They seem like they're out of options. And everybody's trying to sell, and sometimes, of course, they owe more than the house is worth now. Are there any more good options out there for folks?
WILLIS: All right. Well, let's talk about what you do. You know, the spring housing market, here we are yet again. It could be a little better this year. But if you absolutely have to sell, what do you do? You've got to step back. You've got to think about, what does my house look like to people who might be in the market right now? What is curb appeal?
Pinpoint problem areas. Start out small. I know this sounds like silly stuff, but it really matters to buyers. Trim hedges, cut the lawn, remove undergrowth, make the entryway your focal point and, hey, put fresh paint on the door. Use lighter colors in rooms inside and remove all the gunk. Even family pictures, awards, whatever.
The point is to get somebody who is looking at your house as a potential bargain as something they could live in themselves so that they could decorate in their own way. You don't want them to come into a house that feels like it's, you know, it's already been decorated, and it's done. You want them to attach emotionally to the house.
So, if you have to sell in this housing market, you got your work cut out for you. But it could be somewhat better, a little better than it's been in the last 12 to 18 months.
HOLMES: All right. Maybe some simple things people there overlook. You've got to dress it up if you want to sell it. You've got to make it look good.
WILLIS: That's right. That's right.
HOLMES: Gerri Willis for us, as always. Thank you so much.
WILLIS: My pleasure. HOLMES: And it is day 92 -- but who's counting -- for President Obama in office. And right now, he is welcoming King Abdullah of Jordan to the White House. Then at 2:00 today, he'll give the commander in chief trophy to the Navy Football Academy. That trophy goes every year to the military academy that's done well amongst the military academies.
And then at 4:00, he'll sign Senator Ted Kennedy's Serve America Act that provides funding to promote volunteering.
Also happening right now on Capitol Hill, we'll take you to a live picture here. A Senate committee considering the nomination of Kansas Governor Kathleen Sebelius to be human -- Health and Human Services secretary, I should say. Her nomination had been delayed before the senators went on a recess because of a tax issue.
Well, another Obama administration nominee getting pushback from some Senate Republicans. They say Christopher Hill, who was tapped by the president to be ambassador to Iraq, could be the wrong man for Baghdad. CNN congressional correspondent Dana Bash explains why.
(BEGIN VIDEOTAPE)
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT (voice-over): The Republican senator trying to block the president's pick for ambassador to Iraq insists to CNN he's got good reason.
SEN. SAM BROWNBACK (R), KANSAS: He directly lied to my face.
BASH: What's behind that blunt accusation? Sam Brownback says Chris Hill broke a promise he made during his last assignment, lead negotiator for the North Korea nuclear talks. At a hearing last year, Brownback asked Hill to include a special envoy to deal with North Korea's alleged human rights abuses.
CHRISTOPHER HILL, THEN-CHIEF NEGOTIATOR, NORTH KOREA NUCLEAR TALKS: I would be happy to invite him to all future negotiating sessions with North Korea.
BASH: But Brownback says he never followed through. Hill calls it a misunderstanding.
HILL: I told Senator Brownback that I would support, indeed, that I would invite the envoy to any negotiations with the North Koreans that did not deal with nuclear matters.
BASH: But those talks with North Korea never happened. Brownback says that speaks to a bigger problem with Hill's tenure as lead U.S. negotiator with North Korea and why he should not be ambassador to Iraq.
BROWNBACK: It was an utter failure of what happened in the six- party talks. And now, you're going to put him in charge of your most important account. I just don't -- I don't think that's the right way for us to go. BASH: Other senators like John McCain oppose Hill for ambassador to Iraq because he has no experience there or anywhere in the Mideast. Still, many Republicans say they decided not to block Hill's nomination for one main reason.
SEN. SAXBY CHAMBLISS (R), GEORGIA: We need an ambassador in Iraq. We need it desperately.
BASH (voice-over): That's why Democratic and Republican sources say despite some impassioned opposition to Chris Hill's nomination, they do believe he will be confirmed as the next U.S. ambassador to Iraq very soon.
Dana Bash, CNN, Capitol Hill.
(END VIDEOTAPE)
HOLMES: Well, two car companies showing off their green cars for the first time on Capitol Hill. Take a look at a live look. It looks like a car show happening up there on Capitol Hill. But, no, this is some of the newest and greatest in green technology there. Coming up, we'll show you more live and exactly what they're hoping to accomplish with this green show. Stay here.
(COMMERCIAL BREAK)
HOLMES: All right. On the eve of Earth Day, two car companies are showing off their "green" cars on Capitol Hill. And CNN's Brianna Keilar is doing her best car saleswoman impression today. All right. Show us what you got, Brianna.
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, there are about a dozen and a half cars here outside of the Senate office building, T.J., part of the Eco Roadshow Climate Week here on Capitol Hill. And you have manufacturers bringing their fuel-efficient vehicles.
For instance, one you may have seen before, the Chevy Volt. This is an extended-range electric plug-in vehicle. GM bringing this out as well, and bringing as well this SUV, the Equinox, which is an electric vehicle. We're going to be showing you all of these vehicles throughout the day.
But, yes this is GM, which as you know has gotten some of the -- some billions of dollars in the U.S. government in bailout money. Obviously trying to show part of their argument for why they have a road to the future here.
But it's not just these big companies, GM or even Toyota, which has vehicles here. It's also small car companies that are trying to get some money from the federal government to further their cause. For instance, one car that we got a sneak peek of yesterday is going to be unveiled here today. It's by Bright Automotives. It is called the IDEA.
This is a company that is run in part by former GM executives. And they have a vehicle that they are actually marketing not to ordinary consumers, T.J., like me or you, but rather to companies that have fleets of commercial vehicles. They say this is a car that gets 100 miles per gallon. And they say that it is cost-effective.
(BEGIN VIDEO CLIP)
LYLE SHUEY, VICE PRESIDENT, BRIGHT AUTOMOTIVE: Right now, the vehicles, depending on how you look at the costs, our vehicle is about ten cents per mile less than a comparable vehicle. And that translates to, over time, if you look at it from a gasoline standpoint, we're saving about 1,500 gallons of gasoline a year for a standard fleet guide (ph).
(END VIDEO CLIP)
KEILAR: However, in order to get to the point where this can be mass produced, T.J., it's going to cost money. In fact, Bright is looking for $400 million in Department of Energy loans. And part of being here today is arguing for that money, why they should get it. Throughout the day, T.J., we're going to be showing you some more of these vehicles. This hybrid Chevy Malibu won, as well as the Tesla, arguably one of the very beautiful vehicles here. Not exactly your family car, T.J., but certainly very beautiful.
HOLMES: Oh, that's pretty good looking that little roadster that was next to you there. And is it fair to call this an elaborate lobbying effort up there today?
KEILAR: Oh, yes. This is an elab -- I would say you could call this a P.R. stunt, no doubt. You know, that's what this is about. These are these carmakers bringing out their goods, trying to get the attention of members of Congress, trying to get the attention of the media. And some of them make their case for why they should be getting some help.
HOLMES: All right. Well, I didn't want to go as far as a P.R. stunt, but thank you for doing it for me. Brianna Kielar up there on Capitol Hill. Good to see you as always. Thank you so much.
And a groundbreaking green energy initiative was announced in south Florida yesterday. The City of Miami hoping a big investment in -- hey, how you doing? -- in smart grid technology means big savings for its residents. CNNmoney.com's Poppy Harlow has our "Energy Fix" from New York.
Hello to you, Poppy. Always some interesting stuff you bring us here. So, what do you have today?
POPPY HARLOW, CNNMONEY.COM: Thanks, I'm not out with some electric motorcycles like yesterday.
HOLMES: Not this time.
HARLOW: We're in the studio. But a very interesting story coming to us today out of Miami. The mayor of Miami, Manny Diaz, announcing a $200 million proposal. Take a look at the companies that are involved. Let's pull up a map here for you.
Some pretty big corporations. Definitely some Fortune 500 companies: Cisco, General Electric, Silver Spring and also Florida Power and Light all coming together, hoping to get some stimulus funds from the federal government.
What they're trying to do is create essentially being energy smart in Miami-Dade County. The project meets the shovel-ready requirements. The goal, what they think they can do is create 800 to 1,000 jobs in the near term.
Let's go through some of what this sort of Smart Meter program has, OK? We would see Smart Meters in every home in Miami-Dade County. They would also install some solar panels at local schools and universities. In addition to that, we see 300 plug-in hybrid vehicles added to Florida Power and Light's fleet.
The centerpiece of this, though, T.J., really is those Smart Meters, because this program is calling for one million Smart Meters to be installed in homes over just the next two years. Those Smart Meters would monitor energy use by the time of day that people are using their appliance. So consumers can check their usage online or on those panels that are going to be installed in their homes.
And T.J., that means they can literally run everything when it's consuming less power. And right now, you don't know how much power is being used when you run your appliances at what time of day.
HOLMES: OK, and being smart will ultimately translate into saving you money, if you can keep up with how much you're using and when and when it's costing you more, right?
HARLOW: Yes, that's exactly right. As I said, people can choose to run their appliances at the time of day when energy is less in demand and, therefore, it costs less. Imagine the difference, right, between running the washing machine at 9:00 a.m. versus 9:00 p.m. Those Smart Meters will provide Florida Power and Light -- that's the main utility there in Miami-Dade County -- information that should help it increase its efficiency.
Also, the project is calling for other consumer technologies that can be tied to Smart Meters. Eventually we could see smart appliances that literally could talk to the Smart Meters and on their own reschedule energy functions to off-peak periods, literally, I guess, saving you money while you sleep. That's what they say.
GE CEO Jeff Immelt coming out yesterday in Miami and saying these meters could pay for themselves in short order. You can get more information right at this Web site. I think we'll pull it up for you. it is EnergySmartMiami.com. Very interesting. Miami's a leader right now in those smart grids. We've even heard the president talk about it.
HOLMES: All right. Poppy Harlow for us from New York with the "Energy Fix." Thank you, as always.
HARLOW: You're welcome.
HOLMES: Well, it is cold in the East, hot out West. But if the weather was that simple, we wouldn't need Rob Marciano. Rob keeping an eye on things not so simple, but that's how we break it down.
ROB MARCIANO, AMS METEOROLOGIST: Well, we try to break it down simple. Weather is a complicated thing. But in the end, it's what's outside your window. So, what is outside your window? In the East, it is a little bit chilly, at least in Chicago. They might get some snow. And out West, they're setting records again, especially in SoCal. Weather's coming up when the CNN NEWSROOM comes right back.
(COMMERCIAL BREAK)
HOLMES: All right, severe weather. Rob Marciano in the weather center at the magic wall. What are you keeping an eye on today, man?
(WEATHER REPORT)
HOLMES: Well, from Snow White to a black princess. Disney has come a long way.
(COMMERCIAL BREAK)
HOLMES: Well, you thought it was just going to be another beauty pageant, huh? Nope. A little politics interjected into the Miss USA pageant, and Miss California's taking a lot of heat now over an answer she gave to judge and gossip blogger Perez Hilton at the pageant this weekend. Take a look.
(BEGIN VIDEO CLIP)
PEREZ HILTON, MISS USA JUDGE, GOSSIP BLOGGER: Vermont recently became the fourth state to legalize same-sex marriage. Do you think every state should follow suit? Why or why not?
CARRIE PREJEAN, MISS CALIFORNIA: Well, I think it's great that Americans are able to choose one or the other. We live if a land that you can choose same-sex marriage or opposite marriage.
And, you know what? In my country and in my family, I think that I believe that a marriage should be between a man and a woman. No offense to anybody out there. But that's how I was raised. And that's how I think that it should be, between a man and a woman. Thank you.
UNIDENTIFIED MALE: Thank you very much.
UNIDENTIFIED FEMALE: Thank you, Carrie.
(END VIDEO CLIP)
HOLMES: Well, Perez Hilton told our Larry King that he really wasn't impressed with that answer. He thinks it cost her the crown, and he hasn't been shy about saying so on his blog. Hilton is openly gay. But he's angered some in the gay and lesbian community for doing things like outing celebrities.
Well, we will turn from beauty queens to princesses.
Disney's first African-American fairy-tale princess, Tiana, coming to a theater near you in December. CNN's Alina Cho takes a look at how Disney is breaking new ground with its upcoming movie, "The Princess and the Frog."
(BEGIN VIDEOTAPE)
SNOW WHITE IN "SNOW WHITE AND THE SEVEN DWARFS": We'll clean the house and surprise them.
ALINA CHO, CNN CORRESPONDENT (voice-over): Move over, Snow White. There's a new princess in town, Tiana. She's the new fairest of them all, and she's making history as Disney's first black princess.
CORI MURRAY, "ESSENCE" MAGAZINE: Finally, here is something that all little girls, especially young black girls, can embrace. And that is huge.
CHO: Tiana's timing couldn't be better. The fairy-tale princess falling on the heels of what some call a real-life fairy tale, the Obamas.
MURRAY; That sent a message that, you know what, no matter what you look like, you're beautiful that one day you can be a princess, one day you're going to be first lady.
CHO: And Tiana's a modern princess, shapely with her own career, far different from cartoons of years past. Racial stereotypes used to be everywhere, even in some Disney productions.
There are reels on YouTube. But times have changed, says marketing guru Linda Kaplan Thalers.
LINDA KAPLAN THALER, CEO, KAPLAN THALER GROUP: It used to be that we would see people in blackface. We would see minstrel shows. We would see black people portrayed in subservient positions. And it is so wonderful that we have finally moved past these stereotypes.
CHO: Pocohantas, Mulan and now Tiana. Disney's marketing machine is in high gear. The doll was unveiled last month. And her movie will be out soon, too, "The Princess and the Frog," set in New Orleans. Tiana's a waitress, a budding chef. She kisses a frog who, no surprise, turns out to be a prince. Kaplan Thaler says that's where the story still needs some work.
THALER: There's a lot of girls, even at 5 and 6 years old, who might scratch their head and go, I don't know. I don't know if it's going to be solved by a prince. I don't know if a frog is going to do it.
CHO (on camera): And what about the prince? The blogs have been on fire asking, if the princess is black, why isn't the prince? His name is Prince Naveen. He's said to be olive-skinned, and a Brazilian actor is the man behind the voice.
As some point out, he's not black, but he's not white either. Perhaps a sign that Disney is entering into another realm, multicultural relationships, another sign of the times.
Alina Cho, CNN, New York.
(END VIDEOTAPE)
HOLMES: All right. Well, I'm T.J. Holmes sitting in today for Heidi Collins. And coming up at the noon hour, the suspected Craigslist killer, he's facing a judge. We'll be live from that scene when the CNN NEWSROOM continues with my man, Tony Harris.
