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Chinese President Announces $45 Billion in New U.S. Contracts; Army Combating Suicides; Ponzi Scheme Whistleblower; Lieberman Not Seeing Re-Election

Aired January 19, 2011 - 12:00   ET

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


CAROL COSTELLO, CNN ANCHOR: Top of the hour. I'm Carol Costello. Let's check CNN's big stories.

President Obama and Chinese President Hu Jintao are in talks at the White House right now. Business executives from each country will join the discussion shortly. Already, officials report the two leaders have agreed on a $45 billion export deal for the United States.

House Republicans are moving toward a vote this afternoon to repeal the health care reform law. Republicans, with their new House majority, are expected to pass the repeal. Democrats say the bill will be dead on arrival in the Senate, which remains under their control.

Hillary Clinton is hinting again she will not continue as secretary of state should President Obama win a second term. Clinton has been in the public glare since 1978, when her husband was first elected governor of Arkansas.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: Well, I am very pleased to be working in this position now, but I have said on many different occasions, I am looking forward to returning to private life, something that I haven't had the experience of for a long time now. And I am proud to serve this president.

I think we've made a real difference in restoring American leadership and credibility around the world. But I do look forward to having a little more spare time and a few more hours just to take a deep breath, which seems kind of hard to have in this job.

(END VIDEO CLIP)

COSTELLO: We're learning new details about surveillance tapes from the tragedy in Houston. Earlier on CNN, a sheriff's official described the video where Congresswoman Gabrielle Giffords was shot. He says the gunman then started firing at others.

He described how Judge John Roll, who was killed in the shooting, tried to protect Giffords' aide, Ron Barber, after Barber was hit by bullets.

(BEGIN VIDEO CLIP)

RICHARD KASTIGAR, PIMA COUNTY SHERIFF'S DEPT.: You can see that he is shot up and around the face and neck. At that very moment, as Mr. Barber is attempting to go to the ground, perhaps as a result of the injury, or perhaps to flee, you can see the judge, Judge Roll, very purposefully put his arms over on Mr. Barber, pushed him down in an attempt to have him crawl under the table that actually is an obstruction to the two of them from escaping.

(END VIDEO CLIP)

COSTELLO: Congresswoman Giffords is close to another milestone in her remarkable recovery. Doctors plan to move her to a rehabilitation facility in Houston on Friday. That information in an e-mail from the congresswoman's parents. Giffords' mother also writes her daughter has scrolled through photos on an iPod and she is even reading cards from fourth graders.

The father of the youngest victim in the Tucson rampage talks about whether he'll ever be able to forgive the gunman. Christina Green's father says he'll have to search his heart. He says one day he may reach out, but he's not at that point just yet.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Can you ever forgive Jared Loughner?

JOHN GREEN, CHRISTINA GREEN'S FATHER: I suppose in time, I can do that. That's what the good lord would want.

UNIDENTIFIED FEMALE: But not today?

GREEN: Not today. No. It's going to take some soul searching before I can do that.

(END VIDEO CLIP)

COSTELLO: The memorial service for Christina Green was held last week in Tucson.

Back to the world of politics.

The White House rolls out the red carpet for America's biggest economic rival. Chinese President Hu Jintao on his first state visit to the United States.

Right now the two leaders are holding expanded bilateral talks with other top officials. Later on, they will meet with U.S. and Chinese business executives. Also in the next hour, the two presidents will hold a joint news conference.

The glitz and glamour gets under way at 6:00 p.m. Eastern Time. President and Mrs. Obama host an elaborate State Dinner in honor of the Chinese president.

The Chinese president has come bearing gifts in the billions.

Let's bring in White House correspondent Dan Lothian.

So, Dan, tell us about this gift, about these contracts.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. The Chinese government does come with these gifts.

What we're talking about here is 200 Boeing aircraft that the Chinese plan to order. This would be valued at about $19 billion. In addition to that, the Chinese government also expected to announce how they have struck some contracts with American companies which will be everything from machinery, auto parts, agriculture, totaling about $25 billion.

So, again, this is something that the president and the administration has really been highlighting, what's key to this relationship between China and the U.S., and that is creating jobs here in the U.S. And all told, these deals are expected to total around $45 billion, and that translates to about 235,000 jobs here in the U.S. -- Carol.

COSTELLO: And Dan, something else that many people want the president to discuss with China, the issue of human rights. In the initial speech this morning, there was a bit of awkwardness as President Obama brought up the Nobel Peace Prize winner. Tell us about that.

LOTHIAN: That's right. That's Liu Xiaobo, who is the political prisoner in China arrested under President Hu.

And this is something that the White House said that the president would be pushing hard on both privately, and then, of course, we heard this morning publicly, the president talking about how it's important, as you look back throughout history, that all countries, if they want to live in a harmonious way, have to really respect the rights of all people. And the president in the past has put out a statement about the Nobel Prize winner saying that he should be freed. And again, this is something that the administration says the president will be pushing very hard on.

And, you know, I was talking to a former Chinese political prisoner yesterday who told me that he believes that this is really critical, that the administration not only should be pushing very hard privately, but should also be pushing very hard publicly on the issue of human rights. And this person pointing out that all of these other issues, when we're talking about trade, when we're talking about the value of currency and so forth, that all of that should really take the back seat until China really makes an effort to address the issue of human rights.

COSTELLO: Dan Lothian live at the White House.

Thank you.

You can hear directly from President Obama and President Hu. Their joint news conference is set to begin an hour from now, at 1:05 Eastern. Of course CNN will bring that to you live.

All week, we're focusing on China. Tomorrow, military ambitions. China has increased its military spending in the last decade. We'll explore what this means for relations with the United States.

We're talking about the U.S. military fighting suicides in its ranks. A live report from the Pentagon, next.

(COMMERCIAL BREAK)

COSTELLO: The U.S. Army is combating mental health issues, specifically suicides. A report out today shows a disturbing rise in the number of Reserve and National Guard troops killing themselves.

CNN Pentagon Correspondent Barbara Starr, you've been sifting through this study. Tell us more about it.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, Carol, this is a very tough subject, of course, and makes some people very uncomfortable to talk about it. But the Army has really been trying to confront this head-on.

There's some good news. For the first time -- we'll start with that.

For the first time since 2004, a decline in the number of suicides in the active duty military. Let's look at the numbers we have to show you.

For the active duty military people on duty in the Army in 2010, there were 156 suicides. That does show a slight decline, the first one since 2004. But keep looking at those numbers, Carol.

A hundred and forty-five Guard and Reserve, and you see the very sharp increase there. These are people who are home in their communities. And, in fact, according to the Army, about half of them never even deployed to the war zone. So they are trying to really struggle and figure out what is going on with people.

The Army has had a lot of programs in suicide awareness, suicide prevention. And just a little while ago, here at a news briefing about all of this, the number two general in the Army talked about the success they are hoping they are having with that effort.

Have a listen.

(BEGIN VIDEO CLIP)

GEN. PETER CHIARELLI, ARMY VICE CHIEF OF STAFF: And I believe unequivocally that there would be higher numbers if we did not have the focus of the leadership and the programs that we've rolled out to get at this problem.

(END VIDEO CLIP)

STARR: General Chiarelli, the vice chief of the Army, right there, has been really focusing on the suicide issue for many months now. And he's really been pushing Army -- he calls them leaders. Think of them as the Army generals, the staff sergeants, the folks in charge of the young troops, to really keep an eye on them, see if they're becoming under stress, see if they're having problems. And they feel they're having some success there, but it's the Reserve and the National Guard that are of concern now -- Carol.

COSTELLO: And that's really interesting, because you said that the reserves aren't necessarily going into battle in Afghanistan or Iraq. And still, they're committing suicide. So would it be who the Army or the military in general is accepting into military service? Could that be it?

STARR: You know, that's -- you raise a good point. People have raised this issue, are they accepting people into the military who maybe do already have existing behavioral health issues or mental health issues? How do you they find out? How do you they identify these people?

How do you get the National Guard and Reserve help when they're back home in their communities? They may be your neighbor. They may be next to you at the grocery store checkout line, and they may be experiencing a lot of stress that leads them to this tragedy.

How do you really get a handle on that?

The Army is trying to identify people, offer people help long before they even get to the war zone. But right now, the statistics show the war may not be one of the central problems -- Carol.

COSTELLO: Just sad. Sad and fascinating.

STARR: Indeed.

COSTELLO: And I hope they figure it out. I do.

Barbara Starr reporting live from Washington.

Thank you.

In Ireland, victims groups say a letter from 1997 is evidence that the Vatican ordered bishops to protect pedophile priests.

The hottest stories online, we have them right here so you don't have to spend a lot of time looking for them. And of course we want you to watch television instead of doing that.

Jacqui Jeras is checking out --

JACQUI JERAS, CNN METEOROLOGIST: But you can do both, Carol. Multitask. It's all about the multitask.

COSTELLO: Good. OK. I grant you that.

What's trending online, Jacqui?

JERAS: Well, this is something that you're going to want to pay attention to.

If you book your family vacations, if you book your hotel rooms online, you're going to have that "ah-ha" moment and say, I knew that people were doing this. Right?

It's called the "sexy lady and other hotel photo tricks." Basically, this company -- oops, I just hit the wrong one. Sorry. But anyway, I'll tell you about it.

Basically, you go online, you check out the hotel, and you see these beautiful pictures. Right? And what happens is you get to the hotel and it doesn't look so great now, does it?

So this company, (INAUDIBLE), is now saying that, yes, we're kind of busting out some of these hotels that are taking these pictures that are somewhat deceiving. They'll take a picture of a beautiful pool and a lovely lady standing in front of the pool, and that's it. But you get there and the place is crowded and covered with kids.

So some tips on there on how you can avoid this from happening to you, and even some hotels that are posted on there. So that's trending on CNN.com. Easy to find it. Go and click on there and check it out.

That's what's trending right now. We'll have more coming up in the next half hour.

And the CNN NEWSROOM continues right after this break.

(COMMERCIAL BREAK)

COSTELLO: Investigating a possible letter bomb. This is breaking news.

They suspect that there is a letter bomb in an Israeli bank called Hapoalim in New York City, right at 6th and 46th. That's kind of near where the Christmas tree is every year.

They are checking out that suspicious letter. We're hoping it's nothing, but we don't know right now.

Allan Chernoff is on the scene. He's checking this out. When we get more information, of course we'll pass it along to you.

(NEWSBREAK)

COSTELLO: Fraud in the heartland. A Minnesota whistleblower risked everything to uncover a massive Ponzi scheme that caused investors millions of dollars.

CNN Money's Poppy Harlow has the story.

(BEGIN VIDEOTAPE)

TY SCHLOBOHM, WHISTLEBLOWER: And the one instruction the FBI said is you can't break the law. POPPY HARLOW, CNNMONEY.COM (voice-over): In 2009, Ty Schlobohm stumbled upon one of the biggest Ponzi schemes in Minnesota's history.

SCHLOBOHM: I, by luck or by circumstance, was inserted into this scheme.

HARLOW: Then money manager, now convicted felon, Trevor Cook, told investors he was running a risk-free foreign currency trading program.

TREVOR COOK, MONEY MANAGER: There's no risk. OK? Riskless transactions.

HARLOW: In fact, though, more than 900 investors lost nearly $160 million.

MARY DINGMAN, INVESTOR, WORKED FOR COOK: Everything is gone. I've lost everything.

HARLOW: The government accused Cook of running a Ponzi scheme out of this Minneapolis mansion. Nearly six months after we first reported this story, Schlobohm surfaced as the focal point of just how this Ponzi scheme came crashing down.

SCHLOBOHM: I was brought over to the mansion, introduced to Trevor. Had a very introductory meeting about the strategy.

HARLOW (on camera): Take me into that meeting.

SCHLOBOHM: I'm largely unimpressed just by the lack of infrastructure. The basement of this mansion was almost out of a set of "The Boiler Room." But I spent an hour with him, heard the strategy. It sound like pure alchemy.

COOK: Our technology can move billions and billions of dollars, and we've cracked the millisecond, actually, last year.

SCHLOBOHM: I was walking down the steps at the Van Dusen, and the first floor, there had to be 20 to 25 potential investors which were all gray haired, 60-to-80-year-old women, married couples and such.

HARLOW: That's where your conscience kicked in.

SCHLOBOHM: My conscience said, you have to do something about it. I was walking away from a mugging.

HARLOW (voice-over): Schlobohm says he quickly called the FBI and financial regulators, leaving voicemails for all.

SCHLOBOHM: "I'm in Minneapolis. I'm pretty sure I just stumbled over a Ponzi scheme. I have a great deal of material that I can e- mail you -- notes, things of that nature. Call me back. Here's my number."

HARLOW: A month later, Schlobohm says the FBI called him in for a meeting, asking him to wear a wire. He agreed.

SCHLOBOHM: I would be sent there to record presentations. I tried to engender the team there that I was, too, a scumbag or a criminal.

HARLOW (on camera): You tried to get in with Cook.

SCHLOBOHM: I tried to get in there.

HARLOW (voice-over): Three months passed, with Schlobohm feeding information to the feds. The FBI would not comment, but the U.S. Attorney's Office confirmed Schlobohm did assist in the investigation.

SCHLOBOHM: But I became furthermore frustrated in the timeline. I didn't know where my boundaries were in terms of saying, let's go, guys. Let's go.

HARLOW (on camera): Did you ever say that to the FBI, you've got to stop it now?

SCHLOBOHM: Yes. I said, "What do you need? Do you need the smoking gun? Do you need more material?" And why and where and when the SEC needs to come in.

HARLOW (voice-over): The SEC did later file a civil suit against Cook, and Schlobohm admits the government can't do it all.

SCHLOBOHM: I think the onus lies on the private sector to be proactive in policing their own industry. Their regulators shouldn't always be the fall guy. I think they are failing us in what we're asking them, but what we're asking them is unfair.

HARLOW (on camera): Unfair?

SCHLOBOHM: Unfair to interpret and anticipate crimes.

(END VIDEOTAPE)

HARLOW: And, you know, Carol, for its part, the SEC told us they have no record of any contact from Schlobohm prior to their investigation.

In terms of Cook, who really was the leader of this fraud -- you see him right here -- in August, he struck a plea deal with the feds. He admitted to only one count of mail fraud and one count of tax evasion. He's serving a 25-year sentence in prison right now.

All the victims, the 900-plus victims, still waiting really to get any of their money back. That's just part of this story. The full story, we've got it right here on CNN Money -- Carol.

COSTELLO: Fascinating story. Poppy Harlow, many thanks to you.

Senator Joe Lieberman, the Democrat-turned-Independent, is expected to make an announcement at any moment about his political future. Let's head to Washington right now and check in with Ed Henry.

Ed, we know that Senator Lieberman is not going to run for another term. So what -- why isn't he going to run? I guess I should start there. Why isn't he going to run for another term?

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, we'll hear from him in a few moments, but there are a number of reasons.

I mean, you'll remember, obviously, he's -- even though he's an Independent, he was aligned with Democrats. But going back to 2000, had been the Democratic vice presidential candidate.

Then, fast forward to 2008. He was appearing at the Republican National Convention, endorsing John McCain, and was on the short list to be his VP.

Got re-elected as an Independent, and was really kind of left without a home, frankly. And couldn't necessarily run as a Democrat or a Republican. Didn't really have that kind of cover.

Back home, his numbers have slipped pretty badly in terms of popularity. And what this means for the electoral map is that, you know, yesterday, there was also another announced retirement, Kent Conrad, Democrat from North Dakota. That's a seat that's likely -- not for sure, but likely to turn Republican. And then that's worrisome for the Democrats.

In this case, the Democrats actually feel stronger about retaining this. They believe that they can get a Democrat elected.

They've got -- it's a strong Democratic state, Connecticut, for their party. And -- but you don't want to have all these open seats.

It adds mystery, it adds possible seats they could lose. Even though Joe Lieberman was an Independent, he was aligning himself with Democrats for organizational purposes. So it was essentially a Democratic seat when you counted it for Majority Leader Harry Reid.

And finally, I think the big significance is this was one of the most well-known moderates, centrists in the Senate. And they are dwindling in numbers.

And it's coming at a time, this retirement that we'll hear in a few minutes, officially, when President Obama is making this new pitch towards the middle, trying to bring back some of those Independent voters. He's brought on Bill Daley, another centrist, as his new chief of staff.

And all of a sudden, as President Obama does that, we see Joe Lieberman, yet another very prominent moderate, leaving the Senate. And you wonder whether this leaves the parties even more polarized as people like Joe Lieberman decide to just walk away -- Carol.

COSTELLO: I know. It's just difficult to be an Independent. For example, liberal Democrats in Connecticut were upset that Joe Lieberman wasn't for the public option when it came to health care, but they were happy he vote forward the health care bill in its entirety. But he just didn't please enough people with either action to make him very popular among Democrats in Connecticut.

HENRY: Sure. It was fractured.

I mean, I remember in the latter days of the Bush administration, not only did he endorse John McCain, but he also was a staunch supporter of a lot of President Bush's foreign policy. Not so much on social issues, et cetera, but on foreign policy. That upset, in terms of his stances on Iraq, for example, upset a lot of Democrats that had, you know, cheered him as the Democratic vice presidential nominee just a few years earlier.

So, you're right, he sort of became a man without a party. That made it a lot harder for him to think about what would be potentially a very big uphill battle in 2012.

And then just take a step back from his own situation, just the broader political climate. It's just not too kind for incumbents right now.

That's why we saw Kent Conrad in North Dakota, as I mentioned, announce he's going to be stepping down. It's just not a great climate for incumbents of any party right now.

COSTELLO: Yes, you've got that right.

Ed Henry, thanks. We'll get back to you.

Want to get to breaking news right now in New York City. The fire department on the scene of an Israeli bank. They believe a letter bomb was received at that bank.

A CNN producer is now on the scene, Kiran Khalid.

Kiran, what can you tell us? What's happening now?

KIRAN KHALID, CNN PRODUCER: Hi, Carol.

I am on 46th Street, Sixth Avenue of Midtown Manhattan. And basically what's happening outside of this very large building that encompasses the block of Manhattan is that a lot of workers within this building actually came down for a cigarette breaks, or to grab lunch, and they were told they could not go back in. In the lobby of the building, you can see that there are several firefighters congregated, and there's several emergency vehicles outside on the street.

We know that the incident happened on the 11th floor, because several of the employees I spoke with said that that's what floor they received the e-mail about. And they know very little at this point except that they cannot go back into the building until further notice. And they've found out that there was something actually happening just after 10:15. A few of them went to lunch anyway. And a group of workers I just spoke with said that they came down and actually inquired if they could go to lunch, and they were told, because you came down, you have to leave the building and come in when we've given an all-clear.

COSTELLO: And Kiran, Allan Chernoff was reporting that firefighters had removed that suspicious package and they x-rayed it. Do you know what they found?

KHALID: I don't. I have seen Allan's reporting. I did not see them leave with that package, so I'll defer to Allan on those.

What I know is what's happening immediately outside the premises of this building. And that's as far as we know right now.

And we had heard that there may have been an evacuation, but what I can tell you from what I'm seeing right now on the sidewalk is there's not that many employees outside. Like I said, the usual crowd that comes out to grab a cigarette, or people who went to lunch and were prevented from coming back into the building -- Carol.

COSTELLO: And we're seeing live pictures of the scene there that's at 6th and 46th in Midtown Manhattan. As you said, that's right -- I don't know. It's near where the Christmas tree goes up every year. So, you know, just to give people a better idea of where this is in New York City.

Can you tell us a little bit about the bank? Supposedly, this letter was received at the bank Hapoalim.

KHALID: Yes, the bank is an Israeli bank, and it was founded in Israel in 1921. And it's a commercial bank that, you know, services the needs of businesses and their owners. And I think private banking customers here -- that come here as well.

As far as the location of this bank, Carol, it's -- I can tell you that it's just three blocks from Radio City Music Hall, which is very popular with tourists. And as you mentioned, it's not too far from Rockefeller Center, two blocks from Fox News, and several banks are in this area as well.

But this one doesn't have a facade outside that indicates that this bank is inside. So someone must have known that there was an Israeli bank within this building.

COSTELLO: I was just going to ask you about the scene. I know it doesn't appear that a block has been shut down, because I can see traffic moving around that building. And there doesn't appear to be much panic either.

KHALID: No, just a lot of curious onlookers and confused employees who haven't been told much. They are actually receiving whatever information about an envelope or suspicious package from reporters who are on the scene.

COSTELLO: Oh, so they're not even really aware of what's happening.

I know that Allan Chernoff is getting more information on exactly what this letter contained, if it really was a letter bomb. Supposedly, he's reporting that they have x-rayed it and it looks suspicious, but we don't know any more than that.

So, Kiran Khalid, we're going to let you go to find out more information for us. And we'll try to get Allan Chernoff on the phone as well.

But what we know right now is that this Israeli bank, Hapoalim, closed to workers right now because of a suspicious letter that arrived there that the fire department suspects could be a letter bomb.

Sixth and 46th is the location in Midtown Manhattan. We'll have more from the scene when we get it.

Let's take a break right now. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Back to the breaking news right now. You are taking a look at a building that contains an Israeli bank. Firefighters believe there was a letter bomb mailed to that bank. At least they believe it could be a letter bomb. This is at Sixth and 46th by Radio City Music Hall. Near where, you know, the Christmas tree goes up every year. Near Rockefeller center.

Allan Chernoff is also finding information on this story. You talked to firefighters, Allan. What are they telling you about this letter?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: I'm actually right outside of the building. This is not a storefront bank. Rather, the bank is on the eleventh floor of this skyscraper on 6th Avenue between 45th and 46th Streets.

Right now, the fire department, the lobby of this building is filled with firefighters. And they are just planning to go up and into the location -- they are basically making their plan right now. I just spoke to one firefighter. He said they have not actually gone in just yet. But apparently, an X-ray of a large envelope -- this is according to the NYPD - an x-ray of this large envelope indicated quote, "a possible letter bomb."

This is Bank Napoalim. It's an Israeli bank. Outside this building, Sixth Avenue is packed right now with fire department vehicles, ambulances, police cars. It's just two blocks, two straight blocks of flashing lights from these various vehicles.

And I'm looking inside of the lobby right now. There are at least 20 firefighters congregating inside. Police officers are outside the building. But there are plenty of people standing right outside the building. So they haven't evacuated the area at all.

COSTELLO: So where is the letter right now?

CHERNOFF: Very good question. It's somewhere inside of this building. I'm assuming on the eleventh floor where the bank is, but, frankly, we just don't know that for certain.

COSTELLO: So, I'm probably going to ask you a bunch of questions you don't know the answer to just yet, but I'm going to ask them just for kicks, OK? Do we know exactly who the letter was addressed to? Was it addressed to the bank itself?

CHERNOFF: It appears that the letter -- it was a letter addressed to the bank. That's what it seems. I mean, it was sent to this location. And the bank is upstairs on the eleventh floor here. Again, not a retail outlet. Rather a business oriented bank. Bank Napoalim.

COSTELLO: And the significance of this being an Israeli bank. I mean, has this bank gotten threats in the past that we know of?

CHERNOFF: Not that we know of. This is not one of the more high-profile banks. It is a long-time Israeli bank. Bank Napoalim -- I believe that is Hebrew and means "bank of the workers." But frankly, it's mainly a business bank these days.

There are other Israeli banks that have do have storefronts outlet in New York City that are much high profile. But clearly, this is being taken quite seriously by the authorities. As I said, you hear on Sixth Avenue we've just got sirens, lights flashing for two straight blocks here. It's quite a scene.

COSTELLO: And just a last question. I'm just wondering the process that they would go through to dispose of this letter if it proves to be a letter bomb.

CHERNOFF: Well, the bomb squad is here. I saw one vehicle, a hazmat vehicle. So, typically what they do in these scares is they will X-ray first. They'll send -- usually -- this usually happens outdoors, but normally they'll send a robot in to do the investigation. Then somebody is suited up in that protective gear.

Inside of a building, it's a little bit of different operation. One would think also they'd suit up in that protective gear and then go in and handle the actual envelope.

COSTELLO: Allan, I know you are -- breaking up now. I know you are standing by waiting to see what happens. When Allan has any new information for us, we'll go back to Allan.

It's Sixth and 46th, but what we know right now is the New York Fire Department, investigating a possible letter bomb at an Israeli bank at 6th and 46th. When we have more information, we'll go back live to New York.

Right now, we want to go live to Stanford, Connecticut. Senator Joe Lieberman making an announcement in just a few minutes that he will not seek another term. Joe Lieberman has been you know, in public life for so long it's hard to believe that he's getting out of public life. But he is.

Let's take a look at some of the highlights of Senator Lieberman's career. He drew national attention in 1998 when he took to the Senate floor to rebuke President Clinton over the Monica Lewinsky scandal.

(BEGIN VIDEO CLIP)

SEN. JOE LIBERMAN (I), CONNECTICUT: You failed to clearly articulate to the American people that he recognized how significant and consequential his wrongdoing was and how badly he felt about it. He failed to show, I think, that he understood his behavior had diminished the office he holds and the country he serves. And that it is inconsistent with the mainstream American values that he has advanced as president.

(END VIDEO CLIP)

COSTELLO: Lieberman went on to become Al Gore's running mate in the 2000 presidential election. And in 2006 Lieberman lost the Democratic primary in the Senate race and vowed to run as an independent.

(BEGIN VIDEO CLIP)

LIEBERMAN: I'm disappointed not just because I lost, but because the old politics of partisan polarization won today. For the sake of our state, our country and my party, I cannot and will not let that result stand.

(APPLAUSE)

(END VIDEO CLIP)

COSTELLO: Another notable moment in Lieberman's career, his support of the Iraq war during debates in 2007.

(BEGIN VIDEO CLIP)

LIEBERMAN: The fact is that we are making progress in a difficult war. And all I would say to my colleagues is, let's give our military, which is doing extraordinary work -- not just militarily, but in reconstructing Iraq. Let's give them the time to see if they can make this work because we have so much on the line there.

(END VIDEO CLIP)

COSTELLO: Of course, his support of the Iraq war angered many Democrats and that cost him the primary. And that's when he switched to independent in Connecticut and he actually won. We're taking another look in Stanford, Connecticut. This is Joe Lieberman's hometown. He'll announce in the next few minutes, we think, that he is going to get out of public life. Maybe retire. We'll hear what he has to say. We're also following developing news in New York City. It's Sixth and 46th at an Israeli bank. New York City firefighters investigating a possible letter bomb addressed to the bank. It's a large envelope. It was actually - actually, we have new information. I just got it in my ear here. That envelope was addressed to a bank employee. So, to a specific individual. New York firefighters taking this very seriously.

Allan Chernoff is on the scene. When he gets more information, we'll pass it on to you. We'll take a short break and be right back.

(COMMERCIAL BREAK)

COSTELLO: OK. Back to the breaking news in New York City. It's Sixth and 46th. An Israeli bank, a possible letter bomb. Allan Chernoff on the scene. Give us the latest, Allan.

CHERNOFF: OK. The latest news that it's all clear here. No letter bomb. No letter bomb at all.

What happened was that the bank received a white package, six inches by three inches. It was X-rayed by the fire department bomb squad here, and they did find wires and apparently a little battery in there. But this was something apparently similar to the greeting cards -- when you open them up, you'll hear a recording. You'll hear music or something like that.

The Bank Napoalim had been suspicious simply because there was no return address on this, and it was addressed to an officer at the bank, but the name was misspelled. That raised suspicions, and they called the police. The bomb squad came. As I said, they X-rayed the package but determined it was nothing more than -- one of those items where you have basically something similar to a greeting card. This is according to Paul Brown, the spokesperson for the NYPD.

So, all clear here at the Sixth Avenue and the building -- the firefighters are now actually departing the lobby of this skyscraper.

COSTELLO: Okay. So we can all take a deep breath and know everything is safe there at the corner of Sixth and 46th in New York City. Allan Chernoff, many thanks for your fine reporting. We appreciate it.

We're also awaiting senator Joe Lieberman to take to the podium in Stanford, Connecticut. Appears he's walking in right now. He's expected to announce that he will not run for another term. He'll be celebrating his birthday as a free man from public life. That's February 24th when he turns 69 years old.

You can see many supporters are cheering him and supporting him as he makes his way through the crowd. I think his wife is there with him. I can -- maybe. Yes, she is. Okay. Let's listen to Senator Joe Lieberman. Independent from Connecticut.

LIEBERMAN: Thank you. HADASSAH LIEBERMAN, SEN. LIEBERMAN'S WIFE: Thank you so much. Thank you. And as I look around this room and as we walked into the hotel, I am just overwhelmed to see so many faces and to look into the eyes of so many who go way back and a lot of memories. And so, what I want to say to you today is that I am here to introduce a very, very, very special man. And as I stand in front of our growing, grown family, and I look at the grandchildren and say oh, my God, I hope they're quiet and I hope everything -- I want to introduce to you, Joey.

(APPLAUSE)

J. LIEBERMAN: Thank you. Hey, hey! Thank you.

(APPLAUSE)

J. LIEBERMAN: Thank you. Thank you very much. Thank you, dear friends. Looking around this room, just full of people who have stood with me and great memories.

(LAUGHTER)

J. LIEBERMAN: Thank you all so much for coming here on really short notice. It matters a lot to me. Thank you, Hadassah, for that characteristically Hadassah introduction. And thank you for sticking with me throughout this.

You know I was thinking that about a year into the Senate service, with all the back and forth travel, and it's not easy on the spouses. And Hadassah has said to me, Joey, how long are you going to stay in the Senate? And I said, sweetheart, I want to make you a promise today. I promise you that when Regis leaves television, I'll leave the Senate. And here we are, right?

We wish our friend and neighbor from the town next door, Greenwich -- in Greenwich, Regis Philbin, great years ahead. And maybe he and I will be hanging out together a little more now.

It was 23 years ago in February of 1988 on a wintry day in Hartford that I announced that I would be a candidate for the United States Senate. Standing with me as I began that long-shot campaign were Hadassah, who was pregnant, and our three children, Matt, Becca and Ethan. Today, Matt, Becca and Ethan are here again. This time, I'm happy to say, with their spouses, Elizabeth, Jacob and Ariela. Jacob may have just left on child duty.

These three couples are now the proud parents of their own children. Ten children. Six of whom are here today. Tennessee -- in order of age. Tennessee is number one, Eden, Yitz, Maddy, Yoav and, in the hallway, Camilla. Our youngest child, Hani, who was born a month after I announced for the Senate in 1988, is here with her husband, Daniel. And as you can see, she's now pregnant. Next month, with God's help, Hani will give birth to their first child, our eleventh grandchild. Talk about the circle of life. So as I look back to 1988, I know what a lucky guy I am. Privileged for the years since then to be a United States senator and blessed in the years since then to have this miraculously growing family. And, first of all, and most of all, I want to thank Hadassah and each of our children and grandchildren for the love, support and inspiration that they bring to every day of my life, including this special day.

There is a personal reason why I wanted to make this announcement at this hotel. And it, too, involves a life circle. During the first eight years of my life, my father, mother, then one sister, though the other sister, Ellen, is here, and I lived in a cold water flat on the second floor of my grandmother's house at 42 Hawthorne Street right here in Stamford, Connecticut. That house and the rest of the street was demolished in the early '60s for urban redevelopment, but it was located right about where this Marriott Hotel is today.

As I think about the journey that I've traveled from my childhood home to this day, I can't help but also think about my four grandparents and the journey they traveled more than a century ago as immigrants to this country. They came to America seeking freedom and they found it. They came to America hoping for opportunities and they got them. But even they could not have dreamed that their grandson would end up a United States senator and, incidentally, a barrier breaking candidate for vice president of the United States. But that is America.

For the extraordinary opportunities to serve our state and country that I've had, I'm personally grateful to the voters of Connecticut, whom I can never thank enough. But I've tried to thank them, to thank you by working hard to get good things done for you, our state and our country.

And I will tell you, that as I look back, some of the most satisfying moments of service that I've had are the ones that usually don't get any public attention. When my great staff and I have been able to provide support to one of you, a constituent, in a moment of need. Whether it was protecting your family from losing your home to foreclosure, or helping the parents of a sick child get the health care they need, or ensuring that a World War II veteran finally received the medals and recognition he was due for his service decades before. Those were moments of great satisfaction.

I'm also grateful, of course, for what I've had the opportunity to accomplish in the Senate itself. What I've been able to do, for instance, to protect our environment, which was has been a life-long priority for me. Leading fights against air and water pollution, working hard to build coalitions to do something about climate change, cleaning up Long Island Sound, protecting the Connecticut River and creating Connecticut's first and only national park site -- Weir Farm.

I'm also proud of what I've been able to do for Connecticut businesses. Helping them to keep and add jobs in our state, particularly in our defense industries, and to work with a lot of other people on that thrilling day that we saved Submarine Base New London. Thank you. And I'm grateful for the opportunity I've had to keep our country and people safe in a dangerous world. As a member, now a senior member of the Senate --

CAROL COSTELLO, CNN ANCHOR: We're going to jump away from this news conference being held by Senator Joe Lieberman as he thanks the people of Connecticut for voting him into office time and time again. And he talks about his service to the people of Connecticut.

We want to know what it means to the wider country, though, to the make-up of the Senate. And for that we go to Wolf Blitzer in Washington.

Wolf, what does it mean for the rest of us?

WOLF BLITZER, HOST, "THE SITUATION ROOM": Well, it means that Joe Lieberman, obviously, is not going to be in the Senate after the next -- he's going to be in the Senate for the next two years, but afterwards he's not going to seek re-election and so it will be a wide open race in Connecticut. They just had a Democrat get elected, Senator Blumenthal from Connecticut. Democrats are strong in Connecticut. We'll see who the Democrats put up. See who the Republicans put up. That will be a contest presumably in Connecticut.

But it does come at a time that several other Democrats are announcing already, Kent Conrad yesterday, they're not going to seek re-election. So it's going to put a lot of additional pressure on the Democrats. Right now they have a 53-47 majority in the Senate. But in the next election, it's going to put a lot of pressure on the Democrats to have really strong candidates running when President Obama presumably runs for re-election. So it's going to make politics obviously fascinating for all of us.

Joe Lieberman's going to be around, as I say, for two years. He's an independent. He sides with the Democrats. He caucuses with the Democrats. But very often he votes with the Republicans. So he's going to have a lot more freedom to do whatever he wants right now since he no longer has to worry about getting re-elected from Connecticut.

COSTELLO: OK, let's talk about that freedom to do what he wants because Dana Bash was talking to John McCain, and John McCain had an interesting -- well, he had an idea for what job that Joe Lieberman might hold next. What was it?

BLITZER: It was to become the new secretary of defense, assuming Robert Gates decides to step down eventually, as he says he will, as the secretary of defense. Lieberman's got a lot of experience in the areas of national security and defense. He's been a member of the Senate Armed Services Committee for a long time. So he knows those issues.

He did disagree with John McCain vehemently on the issue of repealing "don't ask, don't tell." Lieberman was one of the sponsors -- one of the main supporters of repealing "don't ask, don't tell" in order to allow gays to serve openly in the U.S. military. McCain was one of the opponents. So on that specific defense related issue, they strongly disagree. But they've been very close, McCain and Lieberman, on Iraq and Afghanistan, all sorts of other national security issues, and they're very good personal friends, as you know.

Lieberman may be the only member of the Senate ever to have addressed a Democratic Convention when he was Al Gore's running mate back in 2000 and a Republican Convention when he endorsed John McCain in 2008. So he goes with the Democrats, with the Republicans. I personally would be very surprised if President Obama turned to Senator Lieberman to be the next secretary of defense.

COSTELLO: Yes, that would be --

BLITZER: It wouldn't be necessarily completely out of the question, but given the -- given a lot of the resentment that a lot of the Democrats who are close to President Obama feel towards Joe Lieberman, that would be a surprise.

COSTELLO: That would definitely be a surprise, somebody who actively campaigned against you and, of course, he was a Democrat, turned Independent. But you said, as you said, he leans toward the Democratic side, so that would definitely be a surprise.

Wolf Blitzer, I'm sure you'll be talking a lot more about this in "The Situation Room," which begins at 5:00 p.m. Eastern. Thanks so much for joining us.

We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: Time to go cross-country and check stories our affiliates are covering today.

Our first stop, Philadelphia. That is what a gas main looks like when it explodes. This one sending sparks and flames high into the sky. A Philadelphia gas works employee was killed. A firefighter and four other gas workers injured.

In Fresno, California, 25 years of playing Super Lotto finally pays off big time for this man. We're talking about $32 million.

(BEGIN VIDEO CLIP)

JIM KITAUCHI, LOTTERY WINNER: I didn't know what to think, to tell you the truth, because it just kind of -- I just couldn't believe I got all the numbers. Actually, I almost forgot to check it again. So, then when I got online and checked it, I just kind of freaked.

LESLIE KITAUCHI, LOTTERY WINNER'S WIFE: I thought he was wasting his money. Now I have no say so in the matter.

(END VIDEO CLIP)

COSTELLO: To Knoxville, Tennessee, now. Imagine driving down the highway and catching a glimpse on the side of the road of that thing. Some pranksters obviously messing with motorists. But when you're doing the speed limit, a quick glimpse is enough to give you quite a start.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We're driving and all of a sudden I go, oh my gosh, there's a tiger on the fence over there.

UNIDENTIFIED MALE: I mean I'm going to go back and say I saw a tiger on the freeway, you know, and they're going to think I'm nuts.

UNIDENTIFIED FEMALE: But I thought maybe it was someone -- it escaped from a circus or some, you know, I didn't know.

(END VIDEO CLIP)

COSTELLO: But it wasn't real. It was just stuffed. That was pretty funny, actually.

CNN NEWSROOM continues with Ali Velshi after a short break.

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