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Campbell Brown
Bill Clinton in Hillary's Way?; Common Ground For Obama and McCain?
Aired November 17, 2008 - 20:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAMPBELL BROWN, CNN ANCHOR: Hi there, everybody.
Everybody talking about it, the possibility that Hillary Clinton could serve as Barack Obama's secretary of state. But, over the last several hours, we have been tracking some fast-moving news that could cost Clinton that job.
Bullet point number one, she is said to be Obama's choice for secretary of state, but wait until you hear what is happening behind the scenes tonight. Is Bill Clinton getting in his wife's way?
Also, take a look at this. Less than two weeks ago, they couldn't say anything good about one another. Now, however awkwardly, they are sitting down together. Bullet point number two, can Barack Obama and John McCain find common ground? And why do they both need each other?
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENT-ELECT: We're just going to have a good conversation about how we can do some work together to fix up the country.
(END VIDEO CLIP)
BROWN: Bullet point number three, look who's back. Senator Edward Kennedy has been battling brain cancer. He is back on the job tonight for the first time since July.
(BEGIN VIDEO CLIP)
SEN. EDWARD KENNEDY (D), MASSACHUSETTS: I feel fine. Looking forward to the session. And we have got a lot of work to do, and looking forward particularly to working with Barack Obama on health care.
(END VIDEO CLIP)
BROWN: But, first, as always, we are cutting through the bull tonight.
And I want you to hear something Barack Obama said just about a year ago.
(BEGIN VIDEO CLIP) SEN. BARACK OBAMA (D-IL), PRESIDENT-ELECT: I'm in this race to take tell the lobbyists in Washington that their days of setting the agenda are over. They have not funded my campaign. They will not work in my White House.
(END VIDEO CLIP)
BROWN: Just this weekend, "The New York Times" published a list of names, a rather long list of names, of people who are working on Obama's transition team or who have accepted jobs in his White House who are either former lobbyists or who have close ties to lobbyists.
"The Times" reports that some of those people were lobbying as recently as this year. Well, now the Obama team is quick to point out that their rules and restrictions on lobbying ties are far stricter than any previous administration, and the Obama folks concede that eliminating anyone in Washington who had ever lobbied Congress or who has a family member who lobbied Congress would be foolish.
And it's true. You could argue the reality of Washington and our government is that lobbyists are often the most informed people on a given issue.
But we certainly never heard president-elect Obama articulate it quite that way when he was candidate Obama. What he said then was:
(BEGIN VIDEO CLIP)
OBAMA: When lobbyists set the agenda, and that's why they won't drown out your voices anymore when I am president of the United States of America.
(CHEERING AND APPLAUSE)
(END VIDEO CLIP)
BROWN: And that is a promise he already may be struggling to keep.
And now the very latest developments in Barack Obama's transition to power.
Tonight, two transition officials confirm they have started looking at former President Bill Clinton's finances and post- presidential dealings. Now, remember, he's earned tens of millions of dollars in speaking fees from groups around the world, and he's refused to say who or what groups contributed to build the Clinton Presidential Library.
So, there are questions about whether he could cost his wife, Senator Hillary Clinton, an opportunity in the Obama administration.
White House correspondent Ed Henry has been working the phones all day. He's got the very latest details on this for us. He's joining us now from Chicago.
And, Ed, what are you hearing tonight?
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Well, Campbell, what I can tell you is that these transition officials here in Chicago and back in Washington as well, they're working on both sides. They say they're going through any records they can get their hands on right now. And they're still requesting other records from the former president to get a handle on his charitable work, that Clinton foundation, also those speeches you're talking about, but also his presidential library, various reports that foreign governments, potential international businessmen may have given large donations, large sums to the presidential library.
None of that has been disclosed. And so they want to get as much information as possible to deal with any potential conflicts of interest if -- and I stress if -- Hillary Clinton is nominated to be secretary of state.
Now, the good news with Hillary Clinton tonight is, with all this work going on, a lot of senior Democrats are reading that to mean she's a very serious candidate for secretary of state, that the president-elect would not have his staff go to this depth in terms of going through these kinds of records if she was not serious.
The potential bad news, though, is if something is found in these records that would make the Obama camp say, wait a second, there might be too many conflicts of interest, we're not going to go down that road, the potential -- I stress the potential -- that Bill Clinton could derail a potential nomination like this for his wife, Campbell.
BROWN: Well, and, Ed, what we're hearing -- or Politico is reporting that team Obama is pretty exasperated at the moment with Clinton's slow response to a lot of the requests they have made. Could this really cost Hillary Clinton a potential position here?
HENRY: It could.
But I can tell you, I have spoken to very senior members of the Obama transition tonight, and they insist that that report in Politico is not true. They insist that, so far, and I stress so far, they're getting all the information that they have asked for, they're getting it quickly, and they feel confident that the Clintons are going to continue to turn over more records.
But, again, this is early in the process. There's a lot more that needs to be turned over, number one. And, number two, go back during the Democratic presidential primaries. A lot of this information was requested by the media and was not turned over by the Clinton camp. So, there are some Democrats tonight saying, are they really going to turn it all over? Are they really going to do it in a speedy basis? And they're wondering whether, at some later point, the Obama camp may be exasperated.
But I can tell you they're insisting tonight that they are confident and they feel good with the amount of information they're getting -- Campbell.
BROWN: All right, Ed Henry for us tonight with the latest details -- Ed, thanks.
We have got now three of our best-connected political observers around who are going to talk about this right now, "New York Daily News" columnist Errol Louis, also morning host of WWRL Radio in New York, Republican strategist Kevin Madden, who was national press secretary for Mitt Romney's presidential campaign, and CNN contributor Hilary Rosen, political director for "The Huffington Post" Web site, all joining us now.
Errol, let me start with you here.
I mean, once again, it appears Bill Clinton isn't exactly helping her case. And at the time that the V.P. debate was happening, we heard, frankly, that that was a reason among the Obama team that she wasn't really considered. Is he a hindrance here, truly?
ERROL LOUIS, COLUMNIST, "THE NEW YORK DAILY NEWS": Well, he's been a -- look, they're a package deal. And I think we have always known that.
But I will tell you, as far as the vetting, I don't think that this rules Hillary Clinton out by any means. Just as they say no drama Obama, the Clintons, you get really pretty much the opposite. They're deliberate. They're early boomers. They're the center of attention. They agonize in public.
I think probably the real question is going to be, does he want to sever the ties that he's got? He can't go around raising money from governments at the same time as his wife is going around doing diplomacy with them. That doesn't mean that she can't do it, but it does mean he's going to have to change his operation.
I think they would sooner do that than walk away from political power.
BROWN: Hilary, what kind of things are they looking for in this vetting process? What is it that they're worried about, what kind of conflicts of interest that could pose problems?
HILARY ROSEN, CNN POLITICAL CONTRIBUTOR: Campbell, I just have to say, though, this is somewhat just maddening if you're, you know, a supporter of Barack Obama or Hillary Clinton or both.
The Obama transition team is saying that the Clintons are being completely cooperative. The Clinton campaign -- the Clinton team isn't saying anything. And we know that Bill Clinton and Hillary Clinton have done more financial disclosure than any candidates in history. This -- he's never made a nickel from his foundation. He has disclosed every source of income on her Senate financial statements.
So, this kind of speculation that...
BROWN: But, Hilary, in fairness
ROSEN: ... evaluation is somehow going to hurt her really is just silly.
BROWN: In fairness, though, I mean, during the primaries, there were a lot of questions that went unanswered about the fund-raising that went toward the Clinton Library.
And, yes, of course he was raising money for charity, but also a lot of that is influence-peddling. You can't deny that. That's just a fact of life. And it's clearly worth vetting, or the Obama campaign wouldn't be spending the time on it.
ROSEN: No, I don't think raising money for a presidential library for Bill Clinton is influence-peddling.
And obviously what the library has done with the Obama campaign is making -- the Obama transition team is making them fully satisfied. As far as his income goes or the Clinton Global Initiative, the things that he's most directly connected to, he's had full disclosure on those things all along.
BROWN: Kevin?
KEVIN MADDEN, FORMER ROMNEY CAMPAIGN NATIONAL PRESS SECRETARY: Well, look, I think Errol and Hilary both have good points.
I think Errol is exactly right in the fact that if Hillary Clinton is going to be named secretary of state, then obviously Bill Clinton's relationships, his disclosure requirements are going to have to change. He is going to have to be a lot more transparent in the way he runs the Clinton Global Initiative, as well as the way her operates with regard to speaking fees.
And I think Hilary has another point, that one of the advantages of having Hillary Clinton and Bill Clinton involved in this debate is that they have a public marriage, that this has been vetted to such a public degree that it's going to -- the argument we're having right now has largely to do with the tension that's natural between anybody who's going to be appointed to a Cabinet position and the media and political observers.
BROWN: Is that a fair point, Hilary, that he will have to be more open and more transparent now, I mean, if she does, in fact, get offered this job and accept it?
ROSEN: I think it's clear that, going forward, were she to become secretary of state, that, you know, he's going to have a much more circumscribed foreign travel agenda and foreign business agenda, whether it's for the Clinton Global Initiative or whether it's for speaking fees.
And, you know, frankly, I think that that would be a commitment he would make if she wanted to do this job and if president-elect Obama wanted her to do this job. So, I don't think there's anything in the past that they have to worry about.
And, you know, going forward, I'm sure they would have an understanding with the White House about exactly what it is he could do. Now, let's not forget, Bill Clinton has been quite a help to the current White House over the course of, you know, international disasters and other things. So, there are times you want a former president out there doing things.
BROWN: Right.
I should mention we're going to talk about this more a little bit later in the show with James Carville and others, because there are some who believe Hillary Clinton should turn it down, that it's not the best thing in the world for her. We will get into that debate a little bit later.
But I want to move on with you guys to the other big news of the day. And, Errol, that was the first meeting between Senator John McCain and president-elect Barack Obama. And I think we have some pictures. Let me just show it. You saw it at the top of the show. Was that a little bit -- it felt like maybe a little bit of an awkward moment. But they're clearly trying to come together, to bury the hatchet, if you will. Can that happen? Are these two going to work together?
LOUIS: Well, I think they are. It's in both of their interests to do so.
I think the thing we have to keep in mind, though, it's not as if they were good friends or even allies or colleagues that dealt with each other and then they had this rupture around the presidential campaign. They really had a very frosty relationship even before the campaign.
John McCain had a level of disdain and disregard for Barack Obama. Obama was running around pursuing all kinds of different goals right off the bat. He ran afoul of the seniority system that really still rules in the Senate. So, they have to create a relationship, not repair one.
BROWN: Kevin, this has been speculated about somewhat. He has said -- Obama has been clear he wants Republicans in his Cabinet. Any chance McCain is one of the them?
MADDEN: No, I think it's very unlikely.
I think that John McCain is going to return to the Senate with the one thing that senators crave, which is an incredible amount of leverage, and that John McCain has always made -- he's always made his marking on Capitol Hill by being somebody who has served as a touchstone of bipartisan accomplishment. I think he is more than willing, ready, and able to go back to the Senate and serve in that capacity. I don't think that you would have John McCain in an Obama Cabinet.
BROWN: All right, guys, we have got to end it there. We're out of time.
To Errol, Kevin, and Hilary, many, many thanks. Appreciate it, guys. Now, if she does get a job offer from the president-elect, there are some who, as I mentioned before, think it might be a mistake for Senator Clinton to take it. In just a little bit, the debate over whether Hillary Clinton should take the job with one of those who knows her best, a longtime Clinton insider, James Carville. That's coming up.
But, first, the bailout question we all worried about. If taxpayers gave these companies huge checks, would they do the right thing to save themselves, or would they continue business as usual and reward themselves?
(BEGIN VIDEO CLIP)
REP. ELIJAH CUMMINGS (D), MARYLAND: I think that AIG does not get it. And I will tell you, I am so disappointed in Mr. Ed Liddy, the CEO.
(END VIDEO CLIP)
BROWN: So, up next, NO BIAS, NO BULL, should we all be as upset as the congressman?
Plus, a live update on the California wildfires. They have destroyed hundreds of homes so far. We're going to take you there.
(COMMERCIAL BREAK)
BROWN: Do you suppose the designers of the Hindenburg got paid after their airship burst into flames? Probably not.
But that's not what's happening at insurance giant AIG, one of the biggest of the financial blimps to flame out recently. Today's announcement of a huge payout to AIG employees does seem a little bit hard to understand.
And our Gary Tuchman asked, how can the company be handing out dough when it is on the dole?
(BEGIN VIDEOTAPE)
GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): You, the American citizen, are paying to keep a huge corporation afloat. So, what you're about to hear about AIG may be galling. Many in Congress, worried this kind of thing would happen, are already aggravated.
CUMMINGS: Well, I think that AIG does not get it.
TUCHMAN: AIG, the American International Group, is getting about $152 billion in taxpayer money to save the company from bankruptcy. But now this announcement: It will give more than 5,000 of its employees half-a-billion dollars in deferred compensation.
CUMMINGS: The problem is, is that it's almost impossible to put a firewall between what is AIG money and taxpayer money. The fact is, is that the taxpayers now own a substantial amount of AIG. And AIG came to the taxpayers and said, please, please, bail us out. Save us, because we're about to die.
TUCHMAN: But AIG says this is the employees' own money they have deferred for tax reasons. And many were considering quitting, so they could get the money owed to them.
AIG senior vice president Nicholas Ashooh says this will affect about 5,600 workers and adds: "The criticism is unfair. We can't afford to have people leave at this critical time. We need to keep our businesses running to pay back the taxpayers."
But Congressman Cummings says the perception is terrible and doubts the rationale for AIG's decision.
CUMMINGS: I think the employees would probably stay, whether they would get this money or not. You know why? Because there's not too many places to go. People are laying off. So, I think these employees would stay.
TUCHMAN: Even if all the deferred money is not taxpayer money.
BRUCE ELLIG, CORPORATE BOARD ADVISER: The smell test is not good.
TUCHMAN: Bruce Ellig's job is to advise corporate boards.
ELLIG: If I were doing this, I would keep the deferred-comp plan exactly where it is. I would identify the key people that I really wanted to hang on to, could not really afford to lose, and I would load them up with stock options.
TUCHMAN: But the deal is done, the fallout just beginning.
(END VIDEOTAPE)
TUCHMAN: It doesn't help AIG's reputation that many in Congress and public are questioning company expenditures, like a fancy business trip to a resort while this bailout was going down.
So, people are not inclined to give AIG the benefit of the doubt, whether or not it's deserved. And, also, Campbell, one more thing to keep in mind: When these 5,000-plus employee get the deferred compensation, there's nothing to stop most of them from leaving if they want anyway.
BROWN: All right, Gary Tuchman for us tonight -- Gary, thanks.
And now we want to go from one struggling company to an entire industry in trouble. And I'm talking about the automakers here, GM, Ford, and Chrysler.
The big three looking pretty weak at the moment, sitting cross- legged outside the U.S. Capitol with beggars' bowls, basically.
Ali Velshi is in Detroit, the stalled Motor City. And you might say he has an update on the possible bailout for America's automakers. But, Ali, let me just get your take, though, quickly, on what Gary Tuchman said about this payout for AIG's executives. Give us a little perspective on that. Is it, in your view, something people should be upset about?
(CROSSTALK)
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: What Gary just said at the end was very interesting, in that AIG is not getting the benefit of the doubt these days, whether they're doing the right thing or not.
Elijah Cummings, Representative Elijah Cummings, is entertaining to listen to. But, in this case, he's wrong. Deferred compensation is not a bonus. It is the workers' earned money that they chose to defer and hold with the company. Often, it's like a 401(k). You get a matching grant from the company and you get that later. It is their money. This is not the same as a bonus, which is something you get on top of your base salary.
So, Cummings is dead wrong about whether or not it's the right thing to do. But he's dead right about the fact that AIG at this point, nothing passes the smell test with them. But, just so our viewers understand, deferred compensation is money that those employees have earned in the past. It's not a bonus.
BROWN: OK. Ali, let me move on, because you are in Detroit right now...
VELSHI: Yes.
BROWN: ... where obviously the future of the auto industry very much up in the air, as lawmakers try to debate this possible bailout plan tonight. Looks like they are not going to get enough votes to pass this plan.
VELSHI: Yes.
BROWN: What's going on?
VELSHI: There are two really distinct views about what should happen with the automakers. Most people think that they need to get some help.
One of the views is the Republican views that there was an Energy Department bill passed, $25 billion available in loans to the automakers if they retool and become more fuel-efficient.
The other one is that $25 billion comes out of the bailout program. The White House is very against this second idea. They think that there's money for the automakers if they retool. The problem here is which way we're going to go about giving the automakers money. But, as you said, they're going to Washington cap in hand to make the case for themselves.
BROWN: All right, Ali Velshi for us tonight -- Ali, appreciate it. Thanks very much.
And a quick heads-up. As the car companies get ready to beg Congress for taxpayer money, we should mention that Ali will be interviewing Ford CEO Alan Mulally. And you will see that right here tomorrow, NO BIAS, NO BULL.
You would think if you were president of the United States, you could have just about anything you wanted, right? So, why is there talk about taking away Barack Obama's BlackBerry? Find out next in our "PDB," the "Political Daily Briefing."
And then later, a NO BULL look at whether Hillary Clinton should take or turn down the secretary of state's job if Barack Obama offers it to her. James Carville, one of the people who knows her best, joins me in a few minutes.
Also, what is going through Michelle Obama's mind as she gets ready for the big move? Her biographer is going to be here to tell us.
(COMMERCIAL BREAK)
BROWN: Check it out. Welcome your new Congress. The freshman class of almost 60 is in Washington this week. They assembled for a class photo on the Capitol steps this morning, as the lame duck Congress tries to wrap up business this week.
Now for our "Political Daily Briefing."
Today, we ask which wanna-be senator is acting like an officeholder, despite one small, but very important detail. He hasn't actually won the office.
Or there's this one. Joe Lieberman, the Democrat who is an independent, who so publicly supported his Republican pal John McCain, well, there was much chest-thumping and fist-smashing that his Democratic colleagues in the Senate were going to get even with some political payback and strip him of a plum committee. So, what happened?
For answers, we turn now to our "PDB" and our man in Washington, Dana Milbank, national political correspondent for "The Washington Post."
Dana, Senator Ted Kennedy, let's start there, because he was back on Capitol Hill today, exactly six months to the day after suffering a seizure that led to doctors discovering he had a malignant brain tumor. And let's listen to what he told reporters today.
(BEGIN VIDEO CLIP)
KENNEDY: Fine. I feel fine. Looking forward to the session. And we have got a lot of work to do, and looking forward particularly to working with Barack Obama on health care.
(END VIDEO CLIP) BROWN: He looks good. And, Dana, I know you were there today. Tell us what else he said.
DANA MILBANK, CNN POLITICAL CONTRIBUTOR: Yes, it was a show of the old Kennedy vigor.
And he did, indeed, look good, made a pitch for universal health care. I also note that he brought his two Portuguese water dogs with him, which happen to be the hypoallergenic type that the Obama family is looking for. I know you like the schnoodles, Campbell.
BROWN: Yes.
MILBANK: But these are pretty cute dogs.
BROWN: Good to know.
Other big news, no final results yet in the Senate race we have been following in Minnesota, incumbent Republican Norm Coleman, of course, and Democratic Al Franken still neck-and-neck as this recount goes on. But that doesn't seem to be stopping Al Franken from acting like he's already won. Is he really going to Capitol Hill tomorrow to meet with lawmakers?
MILBANK: You better believe it. If he didn't learn anything from all those years at "Saturday Night Live," it's how to be a character actor. So, he's going to go pretend to be a senator tomorrow and hang out with the other Democratic senators.
The obvious problem being he hasn't been elected yet, and, in fact, the latest count has him down a couple hundred votes. The opponents are saying he's being presumptuous. His side saying, well, better just be prepared in case he wins.
BROWN: Yes, I guess it can't hurt.
Also tomorrow, a big day on the Hill for Joe Lieberman. What are you hearing about his fate in the Senate?
MILBANK: A big day tomorrow. It's a double judgment day. You have got Lieberman. The Senate's Democrats are going to have a secret powwow to decide whether to strip him of his committee chairmanship.
At the same time, it's Ted Stevens' 85th birthday. And the Republicans are celebrating by having another secret powwow to decide whether to kick him out of the caucus because of his felony conviction.
I'm going to predict that both sides will cave. Lieberman keeps the chairmanship, and Stevens stays on.
BROWN: And, finally, Barack Obama without his BlackBerry. It turns out that, when he officially becomes president, he can't have one or a personal e-mail address. So, tell us more about this.
MILBANK: Yes. I mean, you know what it's like to surrender your CrackBerry. But it's the same sort of thing that happened when Bush came into power. He said no, look, more e-mails. It's potentially a security risk, potentially embarrassing to the president.
Then you have got to get all those sort of messy e-mails in the National Archives. So, he won't have that. They may let him have a laptop in the Oval Office. And with any luck, he gets to keep his cell phone, so maybe he can do a little text-paging on the side.
BROWN: God, you have to beg for a computer and a cell phone when you're the president.
(LAUGHTER)
BROWN: All right, Dana Milbank for us tonight -- Dana, thanks.
MILBANK: Thanks, Campbell.
BROWN: Still to come this evening: the ferocity of the fires burning in California. We are looking at the urgent battle to save homes and dreams from the flames.
Also, man in the middle -- is Bill Clinton an obstacle standing between his wife, Hillary Clinton, and president-elect Obama and the chance she could become the next U.S. secretary of state? Who better to ask than Clinton pal and strategist James Carville?
(COMMERCIAL BREAK)
BROWN: Coming up, vetting Bill Clinton. Could it keep Hillary Clinton from becoming secretary of state? First, though, Joe Johns joining us with "The Briefing" -- Joe.
JOE JOHNS, CNN SENIOR CORRESPONDENT: Campbell, three wildfires have now burned 64 square miles of Southern California, destroying hundreds of homes. Tonight, conditions are improving.
Kara Finnstrom is live from Los Angeles.
KARA FINNSTROM, CNN CORRESPONDENT: Well, Joe, some news of hope tonight. As we speak here, the mayor of Los Angeles is holding a press conference and he has just announced that the search for bodies in the mobile home park just behind me, which was completely obliterated by the Sylmar fire, has now been completed and no bodies were found. So some very good news tonight.
This mobile home park had about 600 mobile homes in it; 500 of them were completely destroyed. And the fear was that that fire moved through here with such intensity, such speed, not everyone may have been able to get out.
This is just one of the fires that have been raging across Southern California since Thursday. And, Joe, I can also tell you that the mayor just said he's gotten a call from President-elect Barack Obama offering his assistance to the area. JOHNS: Thanks, Kara.
In other news, pirates have seized a Saudi oil tanker in the Indian Ocean. The MV Sirius Star and its 25-member crew are being taken to a port in Somalia. It's the largest vessel ever seized by pirates. It could be carrying up to two million barrels of oil.
Another down day on Wall Street after news of more massive job cuts. The Dow Jones industrial dropped 223 points today as Citigroup announced it will cut 53,000 jobs over the next several months.
This just in, the "Associated Press" reports Yahoo founder Jerry Yang will step down as the Internet company's CEO as soon as a successor is found.
And billionaire Mark Cuban is in trouble with the Securities and Exchange Commission. The owner of the NBA's Dallas Mavericks allegedly used inside information to sell his stake in a search engine company avoiding $750,000 in losses. Cuban denies it and plans to fight the charge -- Campbell.
BROWN: All right. Joe, thanks very much. Appreciate it.
Coming up, think of it this way. Bill Clinton walking through the Obama transition team's truth and transparency detector. Will he set off alarms? Could he scuttle his wife's chances of becoming secretary of state?
And a little bit later, a new installment of the Obamarama we call "Welcome to the White House." The focus tonight, Michelle Obama.
(COMMERCIAL BREAK)
BROWN: We're going to be talking more about what effect Bill Clinton may have on Hillary Clinton's chances of becoming Barack Obama's secretary of state. But first, here's a report now from CNN's Tom Foreman to explain why this has become an issue, the very complex issue of the ex-president's interest.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): Bill Clinton's charitable foundation has waged a widely praised global battle against AIDS, malaria and climate change, for economic and educational development, and it has raised a lot of money. $81 million in contributions last year alone. Some from foreign interests. And that could be a problem.
If Hillary Clinton becomes secretary of state, some political analysts say Bill Clinton's connections could pose a conflict of interest. It's not just a theory.
SEN. HILLARY CLINTON (D), NEW YORK: I believe that the president should not attend the opening ceremonies because that is giving a seal of approval by our United States government. FOREMAN: Back in the spring before the Olympics while she was speaking out against China's crackdown on Tibetan protesters, the "Los Angeles Times" reported that her husband's foundation was taking money from a firm accused of collaborating in that censorship. In addition, Politico.com and others cite donations from officials in Saudi Arabia, Morocco, the United Arab Emirates and Kuwait, each one, a contact for Bill Clinton and a potential conflict for the Obama White House.
JEANNE CUMMINGS, THE POLITICO: I think that he knows a lot of world leaders and he has informal conversations with those world leaders, and those are the conversations that the administration will not be able to track, nor can they control.
FOREMAN: Of course, all those Clinton connections could also buy enormous goodwill for Obama and provide him with a wealth of international experience. Besides, the former president recently told philanthropy.com he guards against any conflict between a donor's intentions and his wife's job as a senator.
VOICE OF BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: If there is even any kind of question we try to do exhaustive vetting, I can recall some money we haven't taken, and also some we did, but only after more than a year of efforts to make sure that everything was OK there.
FOREMAN (on camera): Still, the Clinton foundation has never named all of its donors. And while many charities guard the identity of their benefactors, not many are so close to being hard-wired to the White House.
(voice-over): Neither the Clintons nor Obama are talking publicly about all they could gain or lose in this. But privately, it looks like Bill Clinton is once again casting a long shadow.
Tom Foreman, CNN, Washington.
(END VIDEOTAPE)
BROWN: Coming up next, we'll ask long-time Clinton pal, James Carville, how the former president's connections could hurt or help the senator's chances of being secretary of state.
Then a little bit later on, Michelle Obama says her number one job in the White House will be first mom. Find out how she says she will keep her kids normal in the White House. We'll explain.
(COMMERCIAL BREAK)
BROWN: It may be the biggest question facing the Obama transition team, at least for the moment. Or maybe the biggest question facing the media who is trying to find out things about the Obama transition team, will Hillary Clinton take the post of secretary of state?
Steve Croft couldn't get an answer out of Barack Obama on CBS' "60 Minutes" last night. Take a listen. (BEGIN VIDEO CLIP)
STEVE CROFT, "60 MINUTES" CORRESPONDENT: You met with Senator Clinton this week?
SEN. BARACK OBAMA (D), PRESIDENT-ELECT: I did.
CROFT: Is she on the short list for a cabinet position?
OBAMA: You know, she is somebody who I needed advice and counsel from. She is one of the most thoughtful public officials that we have. Beyond that, you're not getting anything out of me, Steve.
(END VIDEO CLIP)
BROWN: So is Senator Clinton on the verge of taking the job or could her husband be a stumbling block? As Ed Henry mentioned a little earlier and Tom Foreman just told us, here to hash it all out, James Carville, CNN's political contributor, Democratic strategist and President Clinton's 1992 campaign manager. He's just joined the faculty of Tulane University, we should mention, where he's going to be teaching a course next year on the 2008 election. A very popular course, I'm sure.
Also with me, Peter Beinart, senior fellow at the Council of Foreign Relations, also a contributor to The Daily Beast Web site and "Time" magazine. And he wrote this week's "Time" cover story, "The New Liberal Order."
So I want to talk about what you wrote about, Peter, in a moment, you know whether or not she should do this. But let's address the Bill Clinton question.
And, James, is this being overblown or is there stuff here that needs to be looked at?
JAMES CARVILLE, CNN POLITICAL CONTRIBUTOR: I think a little bit of both. I think it might be a little bit overblown, but there are stuff that obviously people are looking at and people are working very hard to try to reconcile some of these things. And I think there's some momentum to get it done but you know, it takes a little time.
As I've said before, you know, she's not married to Todd Palin. It's good that, you know, President Clinton is involved in a lot of things. I want to compliment Tom Foreman, by the way, for mentioning all of the good things that the Clinton CGI does and the fact this money that's being raised doesn't go to President Clinton. It goes to a variety of really worthwhile humane causes. But I thought the piece was very fair in that respect.
BROWN: Well, and that's a fair point to make. I mean, it is clearly -- that's clearly the case with regard to CGI, but there are also little issues here. I mean, just by virtue of the fact that he has casual conversations with world leaders in the way, as you said, Todd Palin would never be doing. I mean, could you see a potential problem here if she takes the job where things could come up? CARVILLE: You know, she was on the Foreign Relations Committee and no one said anything. President Bush's father had the Bush library. I mean, he -- as he well should, he talked to foreign leaders all the time. That's the power of the president of the United States.
So, I mean, you know, the Clintons are very involved and it's not unusual that a former president would have conversations. I think that most people think that's a good thing for the secretary of state to have a husband with that kind of knowledge, and I think that we've got to be careful here.
It's not like he's a lawyer representing these people. He's a humanitarian that's accomplishing great things around the world. Probably saved millions of lives and improved tens of millions of lives here. So we got to be very careful about what we're talking about here. But I don't think -- I think it's very legitimate for them to look at.
(CROSSTALK)
BROWN: But I think, though, what you're addressing here are the things like speaking fees that he's accepted from certain people or certain places and that kind of thing that he may have to rein in. Or --
CARVILLE: He may -- he may have to. That would be -- that certainly would be something that the president-elect's people would want to look at and talk to President Clinton's people about. But that's a legitimate thing to look at. But, I mean, some other stuff is a little -- it's both a little overblown, but some of it is legitimate.
BROWN: So, Peter, you wrote a really interesting piece where you said, you know what? Even if they figure all this stuff out and she gets offered the job, she shouldn't take it. It's not the best thing for her. Make your case.
PETER BEINART, COUNCIL ON FOREIGN RELATIONS: Yes. I mean, I think she'd probably be a really good secretary of state. I mean, she's very tough. She's very hard-working. She's been a good senator. But if she wants to be president again, I think secretary of state is not a launching pad to be president.
There's a reason that we haven't had a former secretary of state be elected president since the middle of the 19th century, because it takes you out of the domestic political environment where you have to maintain your connections and develop issue agendas that you need to do. And she is young enough to make a run for president in 2016, but I think it will be much harder if she becomes secretary of state.
BROWN: Yes. But in the Senate, too, I mean, is that you can make a case that governors have had far more success in at least in recent history in getting elected president. The Senate isn't always the best platform for that either. BEINART: I can get history has been a little bit distorted because since the end of this when foreign policy is not a major issue, governors do very, very well as it did after the Cold War. But if you look at times when foreign policy is front and center, as I think it will in the future, then senators really have a fighting shot. So I think the Senate is a much better place to run. Besides she could always run for governor of New York if she thought that was a better launching pad.
I think either governor or senator would be better than secretary of state, if she still has the desire for another presidential run. And we should remember that many people have to run two or three times before they ultimately get it.
BROWN: James, what do you think?
CARVILLE: Well, first of all, I think that Peter is a very, very bright guy. His cover piece in "Time" is the same as the book that I'm getting to write (ph) called forty more years. So -- and I think he's also right that in terms of her running for president, this may not be the best thing. But these are pretty extraordinary times for the country. And if the president of the United States wants her to do this, I suspect that she feels some sense that she has to deeply consider it. Maybe take it.
And I mean, secretary of state is, you know, arguably the second most consequential job in the United States government. I mean, it's, you know, if it's a consolation prize, it's a pretty doggone good one. But he's right in a... BROWN: Purely political.
CARVILLE: ... political sense.
BROWN: Right.
CARVILLE: Purely political, she's better off. But I think there are probably other calculations that are going on here, too.
BROWN: Do there -- quickly, Peter, do there have to be other calculations? When the president calls, you got to take the call, right?
BEINART: Sure, of course. I mean, it would be very, very exciting. I mean, it will be a challenging environment because national security advisers are often -- can often be more influential than secretaries of state, even though she would obviously be a very powerful one, and you have a vice president who will be very involved as well. But, sure, given the magnitude of the problems that you could change the American relationship with Iran and get them there out of Iraq in a reasonable way and turn the tide in Afghanistan, that would be of historic significance.
BROWN: All right. To James and to Peter, many thanks, guys. Appreciate it.
CARVILLE: Congratulations on your cover piece, Peter. BEINART: Very kind of you. I appreciate it.
BROWN: It's a love fest. This never happens.
BEINART: I was going to say.
BROWN: I'm all for it.
BEINART: You and my mother.
BROWN: OK. Thanks, guys.
Coming up, the inside story of the Obama family from the woman who wrote the book on Michelle Obama. We'll talk about their journey to the White House. What happens when they get there?
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(BEGIN VIDEO CLIP)
DEEPAK KAUSHAL, BEAVERTON, OREGON: Dear Mr. President, my name in Deepak Kaushal. I am 6 years old. I live in Beaverton, Oregon. I will be able to vote in the year of 2020.
It's important to me for you to take care of us. Congratulations to you and Joe Biden. Yours truly (ph), Deepak Kaushal.
(END VIDEO CLIP)
BROWN: All over the country right now, school children are writing letters to our incoming president and they're sharing some of those letters with all of us.
Tonight's letter comes from CNN iReporter, Deepak Kaushal, who is 6 years old and lives in Beaverton, Oregon. I know he's watching tonight.
So, hey there, Deepak. Sorry, it took us three nights to get you on. But there you go.
If you would like to send us videos of your kids' "Dear Mr. President" letters, look for the iReport link on our Web site CNN.com/campbell.
"LARRY KING LIVE" coming up at the top of the hour, and he's got the latest news on Barack Obama's cabinet. And that's not all.
Larry, what do you have tonight?
LARRY KING, HOST, "LARRY KING LIVE": What else we have is extraordinary, Campbell. We have the pregnant man. He's here, and he's having a second baby. And you're going to meet his wife and his little daughter. Mom and Dad are going to take your phone calls.
Plus, we'll talk about the economy. Should Detroit get a helping hand, or should the automakers be left on their own? What will president-elect do about it?
And the bigger picture not looking pretty. Barney Frank and Ben Stein -- we call them "Frankenstein." We'll have them join me with some questions and advice and answers.
And is Hillary going to be secretary of state? A lot on the plate tonight, Campbell, all next on "LARRY KING LIVE."
BROWN: I'll say. Not to be missed tonight. Larry, thanks.
Coming up, one of those amazing moments everyone is talking about. California firefighters saved so much more than a life when they rescued an 84-year-old woman from the raging fires. For that, they earn a place in our "Bull's-Eye."
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BROWN: Now it's time for "Welcome to the White House," our nightly wrap-up of all things Obama. It's been a long time obviously since we've had such a young first family. Like it or not, all the Obamas are going to be in the spotlight now because of that.
We want to talk now with "Washington Post" writer Liza Mundy who has interviewed Michelle Obama. She is the author of "Michelle, a Biography."
And I know, Liza, you talk a lot to her friends, to her family. Give us a sense on your take of what her perspective is going into the White House. I know I've heard her say that she wants to try to maintain this level of normalcy for her children, but is that at all realistic?
LIZA MUNDY, "WASHINGTON POST": Well, I think that she will work very hard at it. Her daughters have grown up in Chicago in the neighborhood of Hyde Park, and they have a very strong community, you know, a very strong social network, lots of friends, lots of sleepovers, lots of play dates. And she is going to be trying to re- create that environment for them here in Washington. And of course, it's going to be very different although there are a lot of, you know, a lot of potential play dates certainly.
BROWN: And I know, Liza, you learned that the Obamas received some pretty interesting advice from close friends, I believe, about raising children in the public eye. What was that advice?
MUNDY: Well, when Barack Obama was deciding whether or not to run for president, he met with two of his early mentors, Newt Meno (ph) and Abner Mikva (ph) in Chicago. Both of whom have been involved in public life. And he was worried about the impact of the run on his family.
These men each have three daughters, and they advised him that it's actually probably easier on children to run for president when they are younger. And that obviously was, in fact, the choice that he made. BROWN: I want to play a little something from the CBS' "60 Minutes" interview from last night, then let's talk about it on the other side.
MUNDY: OK.
(BEGIN VIDEO CLIP)
MICHELLE OBAMA, BARACK OBAMA'S WIFE: Women are capable of doing more than one thing well at the same time. And I've, you know, had to juggle being mom-in-chief and having a career for a long time. The primary focus for the first year will be making sure that the kids make it through the transition.
(END VIDEO CLIP)
BROWN: And let's be honest here. She is a Princeton, Harvard- educated career woman. Last night, Barack Obama in that interview said that he thought that she would set her own path as first lady. Describe in your view, given what you know of her and your conversations with her, what kind of first lady you think she's going to be.
MUNDY: Well, I do think that she'll spend a great deal of time at the beginning ensuring that her daughters have normalcy. She is a very high-powered executive and graduate of the schools, as you say, but she's also a committed mother. And like many women, you know, discovered when she had children that she was torn between the workplace and the home and at certain times had considered being a stay-at-home mom for a while.
So I think she will spend time re-creating their environment to the extent that it's possible here in Washington. And then she -- and she will be a very involved first lady as well. And I'm sure that we will see her taking on one or more issues. Probably none of them as controversial as health care was for Hillary Clinton, but certainly there are a number of areas that she's interested in.
BROWN: All right. And we will be finding out all about -- much more about that as they make the move.
Liza Mundy for us tonight. Liza, thanks.
MUNDY: Thanks for having me.
BROWN: Coming up, the urgent life and death battle in the hot zone in Southern California. We're going to take you there and share with you one pretty incredible survival story. It's our "Bull's-Eye" tonight. That's when we come back.
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BROWN: We have seen some incredible survival stories from the wildfires blazing out in Southern California. And tonight, one of those stories makes our "Bull's-Eye." 84-year-old Ruth Kimky (ph) packed her prized possessions into her 1973 Camaro, intending to flee the Oak Grove Mobile Home Park where she lived. But the power was already out and with the flames moving closer, she couldn't get her garage door open. We heard her tell the story this morning on ABC's "Good Morning America."
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Plus the winds at that point were 70 miles an hour, the gusts. And it was like a blow torch furnace.
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BROWN: Firefighters rescue Ruth in the nick of time. She managed to escape with her wedding album and her husband's ashes, her most prized possessions.
Tonight, she is in a Red Cross shelter at a local high school. So we are giving the "Bull's-Eye" to all those firefighters out there risking their lives right now to help people like Ruth. Thanks to all of you.
That's it for us. "LARRY KING LIVE" starts right now.
