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Gunmen Release 14 Hostages in Greece; Chemical Ali to Face Hearing Next Week; Some Believe Kerik Nomination Could Hurt Giuliani; British Home Secretary Resigns Over Affair Scandal; Sprint, Nextel Merge; Rumors of Cell Phone Numbers Being Disclosed Untrue

Aired December 15, 2004 - 13:00   ET

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

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


KYRA PHILLIPS, CO-HOST: Hostage situation, armed hijackers claiming they have bombs on a bus, demanding to be driven to an airport and put on a plane. We're LIVE FROM Athens, Greece.
FREDRICKA WHITFIELD, CO-HOST: Should you be vaccinated against anthrax? New information out today on protecting your health in a terror attack.

PHILLIPS: Airborne airtime. New federal rules about what you can and can't do aboard airline flights.

WHITFIELD: And Cuban dictator Fidel Castro says "bah humbug" to Christmas decorations at the U.S. diplomatic mission. We're the only network bringing you that story LIVE FROM Havana.

From the CNN Center in Atlanta, I'm Fredricka Whitfield, in for Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

Fourteen hours into a hostage standoff in Athens, Greece, there's progress but still a long way to go. Attackers carrying explosives, guns, they stormed a commuter bus, taking about two dozen prisoners hostage (sic). Some of the hostages have already been released.

CNN's Alessio Vinci joins us now from Athens with more. What are the hijackers demanding, Alessio?

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Kyra.

We do know at this time the hijackers are demanding a one million euro ransom. That's roughly $1.3 million ransom, as well as being able to drive the bus you see now to the airport in Athens and then be flown to Russia.

The $1.3 million ransom is the latest request. The hijackers throughout the day only asking for the bus to be driven to the airport and then be flown to Russia. This is the latest demand, the latest addition.

In addition to that, throughout this day the hostage-takers have released several hostages, 14 in total. The latest one, two about a half hour ago, bring a total of 14 released, which leaves seven hostages on the bus at this time, including the two hijackers, which they do have at this time. They have guns. They have also strapped explosives to their body, and they said that they will blow up the bus, should their demands not be met.

Police officials are also questioning some of the hostages that have been released throughout this day. They are concentrating on them, of course, first of all because they want to try to establish the identity of the hostage -- of the hijackers.

They do work under the assumption that they are of Albanian origin, that they are Albanian nationals. But they haven't identified yet their identity.

Also, they want to sort of find out more information about how the hostages are behaving. The hostages -- the former hostages are telling police officials that so far they've been treated well. As a matter of fact, earlier today inside the bus the hostage-takers even distributing some water, as well as some croissants, some cakes to the former -- to the hostages on that bus.

So it does appear that at least for the time being the situation inside the bus is tense, but calm.

Kyra, back to you.

PHILLIPS: Just a couple quick questions, Alessio. You mentioned that the hostage-takers may be Albanian. Do you know if they're related to any terrorist organization?

Also, you're talking about a number of those hostages already being released. Was that through negotiations? And were they all women and children?

VINCI: Let me start with the negotiations. First, there are no children on board. They have been released because of some negotiations. As a matter of fact, police officials are telling us that negotiations are going quite well. And that is why 14 hostages have been released. There are no -- no children on board, just men and women.

What was the first question, Kyra?

PHILLIPS: The alleged hostage-takers are Albanian. Do you know if they're tied to any terrorist organization?

VINCI: Right. Right. There are no -- there are no reports whatsoever suggesting that they are belonging to any kind of international terrorist group. As a matter of fact, police officials here are telling us that they believe that they are -- that they are dealing with criminals, rather than terrorists.

Therefore, they're working under that assumption, that there are no other demands, other than a money ransom, as well as being able to leave the country safely.

PHILLIPS: Alessio Vinci, LIVE FROM Athens, Greece. Thanks so much, Alessio -- Fred.

WHITFIELD: All right. We're going to talk a little more about that standoff taking place in Greece. And hostage -- rather, CNN's Mike Brooks is used to the negotiations that take place.

You were formerly a hostage negotiator. What is the difference, when we talk about negotiations versus communication? Because oftentime, authorities don't want to say they're actually negotiating or giving in to hostage-takers.

MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST: Well, it sounds like in this particular case it is going extremely well. You have a 14- hour standoff, and you have 14 hostages released. I think that's very, very good.

The hostage negotiators in Athens are also extremely well trained. They've been trained by the FBI, Quantico, Virginia, as well as metropolitan police in London, two of the top organizations on dealing with hostage situations.

Now, we hear from Alessio that they're also believed to be criminals. You define -- you divide hostage-takers up into three categories: criminals, crusaders and what I call crazies -- people who have an altered mental status.

The hardest ones to deal with the crusaders, the terrorist types.

But the easiest ones, usually, to deal with are the criminals. These are the people that know the system. They know how to negotiate. They do know how to communicate with police. They know what police can give them, and what they can't realistically.

So far, so good, I would say on the negotiation side. But it's nightfall there now. As long as a dialogue keeps going, I think this situation is looking pretty good.

WHITFIELD: And you want to call these criminals, because there is this more than a million dollar demand being mad, more than a million euros, being made, in exchange for, also, access to a plane to get to Russia. They're not professing any sort of political motivations here.

BROOKS: None whatsoever, nothing of any political or social objectives that they're trying to achieve through the hostage taking. And we're hearing also from some reporting there that they know that these people are apparently former criminals. So that's why they believe that they are dealing with criminals.

But, again, they want to make sure that it does not go mobile. You see a bus in front of the bus where the hostage taking is going on. You see a police car in the back.

If they do have explosives, and they know for sure that they have a weapon, because they fired some shots out of the window of the bus early on in the hostage taking, you don't want these explosives on the bus as a mobile bomb, going through the city of Athens. WHITFIELD: All right. Former hostage negotiator yourself, Mike Brooks, thanks so much.

BROOKS: Thanks.

WHITFIELD: Kyra.

PHILLIPS: Half a world away, a bomb blast is causing more chaos in Iraq, just weeks before the all-important election. That bomb exploded outside a mosque in the holy city of Karbala.

CNN's Chris Lawrence has details on casualties and other developments now in Iraq.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT: On the first day of campaigning for next month's election here in Iraq, a bomb has exploded at a mosque in Karbala. The bomb exploded at the entrance to a mosque, and the blast killed at least seven Iraqi people and wounded many more.

All of this comes as many people predicted an upsurge in violence here in Iraq, as we get closer to next month's elections.

And on this same day, interim Prime Minister Ayad Allawi promised to rebuild Iraq's army, as he announced his own candidacy for next month's elections. Allawi's coalition is more than 200 strong, but he's already being accused by some here in Iraq of playing politics.

It was Allawi himself who, just yesterday, surprised a lot of people by announcing that the trials for Saddam Hussein's top lieutenants could begin as early as next week.

CNN has now learned from a well-informed observer that this is not a trial but more of an investigative hearing, where the judge will hear evidence, listen to questions, listen to the answers to question, and try to determine if there is enough evidence to go forward with a trial.

The men will have certain rights. They will be represented by a lawyer. And this part of the proceeding will be held confidentially, not out in public.

And it will involve two defendants. One is a former Iraqi army commander. The other is Ali Hassan al-Majid, otherwise known as Chemical Ali. Now, he is accused of committing some of the worst crime during Saddam Hussein's rule, including gassing nearly 5,000 Kurds in northern Iraq during the late 1980s.

As for Saddam Hussein, we are told that he will be tried after his aides so that prosecutors can gather more evidence from the trials of the men who worked for him, collecting more evidence to perhaps tie some of the killings that were committed during his rule to a direct order from Saddam Hussein.

Chris Lawrence, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: And the death toll for American troops in Iraq is rising. Military officials now say that two Americans, a soldier and Marine, were killed yesterday. Still no details on how or where they were killed.

WHITFIELD: Memories are still fresh three years after a string of deadly anthrax attacks in the U.S. Anthrax letters sent to several media outlets and a Senate office building left five people dead and 22 others sick.

If a more widespread attack were to occur, researchers say they now know how to prevent a massive outbreak.

(BEGIN VIDEO CLIP)

RON BROOKMEYER, JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH: Our research shows that if we could get antibiotics to people within six days of exposure to the anthrax, we could prevent 70 percent of cases.

(END VIDEO CLIP)

WHITFIELD: Brookmeyer says the challenge is identifying anthrax exposure within six days -- Kyra.

PHILLIPS: Straight ahead, how did issues from Bernard Kerik's past get past the White House staff? Some surprising public reports today. That story just ahead.

Caught on tape, an explosion situation at the gas pump. That story behind these pretty amazing pictures, later on LIVE FROM.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I realized how close I come to dying. And knowing that, you know, if it wasn't for having the presence of God there giving me the strength to do what I need to do to survive, I wouldn't have been able to come back.

(END VIDEO CLIP)

PHILLIPS: Surviving in Iraq. The personal side to the political debate over equipping soldiers.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

WHITFIELD: Well, now more on the Bernard Kerik kafuffle and the rapid collapse of his nomination to head homeland security.

In today's "New York Times," questions about how the White House vetting process missed a long list of potential land mines, including an illegal nanny, allegations of financial improprieties, an extramarital afar and even possible mob ties.

"The Times" reports the president, who first met Kerik shortly after 9/11 in New York, was very fond of the New York police commissioner.

"The Times" also says the administration nominated Kerik before a full-scale FBI background check could be conducted. And reportedly, no one consulted the one person in the West Wing familiar with Kerik's background: Frances Townsend. The Bush adviser on homeland security and a former federal prosecutor in New York, was also in the running for that job.

Meanwhile, New York blood may be thicker than partisan water. New York Democratic Senator Charles Schumer regrets the fact that the former Big Apple police commissioner had to withdraw his name from the running.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: I think that Bernie Kerik had no choice but to step down. He did understand the needs of homeland security and of New York and would have been a fighter for them. And we hope that the president nominates somebody who will understand the needs of homeland security as strongly as Bernie Kerik did.

(END VIDEO CLIP)

PHILLIPS: The White House shifts focus to a new nominee for the homeland security job. Some observers wonder how Kerik's fall from grace might impact another New Yorker's credibility.

Rudy Giuliani pushed hard for Kerik's nomination. CNN's Mary Snow looks at how Giuliani might suffer from the fallout of the nomination failure.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Bernard Kerik's star fell swiftly within just one week. But the question is, will Kerik's past tarnish Rudy Giuliani's political future and a potential run for president?

FRED DICKER, "NEW YORK POST": So I think it's a blow to him. It's certainly not fatal, although we don't fully know yet what's going to come out.

SNOW: Giuliani said he was proud when Kerik was nominated to be homeland security director.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK: I know personally the qualities that he has and what a good choice this is for the United States.

SNOW: But a week later...

GIULIANI: It's an embarrassment to me and to Bernie.

SNOW: Giuliani met privately with the president over the weekend and says he remains very close with him. Giuliani's relationship with him is closely watched since he's seen as a rising Republican star.

GIULIANI: Welcome to the capital of the world.

SNOW: Some say the Kerik flap is particularly damaging, because it was about the homeland security director. And Giuliani catapulted onto the national arena because of his leadership on September 11 and the days after.

WAYNE BARRETT, "VILLAGE VOICE"/AUTHOR: But this is his strong suit. And so when it's your strong suit and you've nominated somebody who blew up so immediately with so many problems, I think it really damages his credentials in terms of the -- he's kind of perceived nationally as sort of the front lines of our anti-terrorism defenses.

SNOW: But some New York columnists don't think the Kerik sting will deal a heavy punch. Observers say, though, the Kerik flap adds a new dimension.

DICKER: From now on, as we're doing right now, when people talk about Giuliani as a candidate, a potential candidate for president -- and make no mistake about it, people around Giuliani are talking about him this way -- people are going to be talking about Bernie Kerik and the problems here, the screw up by Giuliani.

SNOW: Mary Snow, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Well, across the pond now, as they say, a high- ranking British government minister, that of David Blunkett, resigns over an interesting twist to the "nanny-gate" scandal.

Our Robin Oakley is in London with the full details on that -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Well, Fredricka, we just heard that David Blunkett, home secretary, or internal affairs minister, as many countries would call him, has resigned over the repercussions, really, of his affair with a married woman publisher, Mrs. Kimberly Quinn.

It's not the fact that he had an affair with her which has led to his political downfall, but the allegations that he had misused his office for her benefit, particularly in fast-tracking a visa for her nanny.

There are other allegations: that he used a government car to drive her about, that he'd stationed a policeman on her door at one occasion, that he'd given her parents privileged information about a security scare, that he misused a House of Commons first class rail ticket by handing it to Mrs. Quinn.

And there have been constant stories day after day dominating the British media.

Tony Blair stuck by David Blunkett, his embattled minister, said he was a first class minister and would continue to be. He's invested much of his personal credit in supporting Mr. Blunkett.

But I think the sheer weight of media attention and opposition attacks on Mr. Blunkett has reached the point where it has overshadowed his ability to do his job. It has come to overshadow the government's agenda on law and order and counter-terrorism, and Mr. Blunkett has felt he's had to go, Fredricka.

WHITFIELD: And, Robin, he's a trusted ally of the prime minister, Tony Blair. Any reaction coming from Blair?

OAKLEY: No, we've not heard anything from Tony Blair as yet. We will, no doubt, get the normal formal exchange of letters between the prime minister and departing minister.

It's a big hole for Tony Blair, though. This is the key department in the electoral program that he set out, and we're expecting an election next May in Britain.

The queen's speech, recently delivered, set out a massive series of bills on counter-terrorism, crime and law and order, which David Blunkett was to oversee. The introduction of identity cards, for example.

It will be very difficult for a new man to come in and impart the same kind of authority to that drive, on the law and order and counter-terrorism questions. So it's a big loss for Tony Blair.

We're expecting, perhaps, that Charles Clarke, the current education secretary, will be the man to take over the home secretary's post. But nobody's for sure yet who will get it.

But for Tony Blair, it's the loss, really, of one of the outstanding ministers in his government, the highest ranking minister, who's had to go since Labour came to power in 1997.

So it will be a huge blow to him and a massive personal blow to Mr. Blunkett, who carries huge personal respect throughout British politic, because, of course, he is a blind man who has had to work very, very hard to get to the position he has and who's renowned as one of the hardest working and most intelligent men in politics -- Fredricka.

WHITFIELD: All right. Robin Oakley in London, thanks so much for those details.

(BEGIN VIDEO CLIP) PHILLIPS (voice-over): Next on LIVE FROM, airborne airtime? Why the friendly skies might become a little unfriendly for people trying to escape cell phones.

Later on LIVE FROM...

UNIDENTIFIED MALE: I go to bed worrying about it at night, and I wake up every morning worrying about it.

PHILLIPS: But is the Department of Homeland Security worried enough about a terror attack on the No. 1 tourist destination in the world? Orlando says it's been short-changed.

Later on LIVE FROM, a defense system designed to protect the U.S. against enemy missiles. Will it ever get off the ground?

(END VIDEO CLIP)

(COMMERCIAL BREAK)

PHILLIPS: Can you hear me now? Can you hear me now? Can you hear me now? It's not working, Fred.

If you're a Sprint or Nextel Wireless customer, listen up. The third and fifth largest cell phone companies are joining forces in a merger worth some 35 million bucks. It's a big deal in the wireless industry and for customers.

CNN's Allan Chernoff join us from New York to explain what it all means.

Hi, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Kyra, we have got lots of merger mania hitting the telecom industry.

Just a few weeks ago, Cingular and AT&T Wireless combined to create the largest wireless company. Now we have Sprint and Nextel in a $35 billion deal.

The deal would strengthen the company's position as the No. 3 wireless provider, after Cingular and Verizon Wireless. They'll have 35 million subscribers.

Now, Nextel specializes on mobile phones that have walkie- talkies. The company needed to upgrade its technology to offer more services like Internet browsing, and now it can simply make use of Sprint's infrastructure.

Sprint, on the other hand, will be able to offer solid walkie- talkie service. It does have a service out there, but the quality is not nearly as good as Nextel's.

For both companies, the deal means big cost savings to the tune of $12 billion. And here's what they plan to do: reduce the number cell sites, cut infrastructure spending and combine, billing, customer service and marketing operations. And you know that will mean job cuts.

The companies plan to spin off Sprint's local phone business. And that means Sprint Nextel will be what Wall Street calls a pure play in wireless. Analysts say the new company will be telling consumers cut the cord, give up your home phone and go completely wireless -- Kyra.

PHILLIPS: A lot of friends that do that. But let's get down to business here and talk about how much is this going to cost for you and me and everybody else?

CHERNOFF: Well, the company's saying this is wonderful news -- that's a quote -- wonderful news for their customers. But consumer advocates aren't so sure. In fact, they're worried the trend towards consolidation means less competition and probably higher prices.

(BEGIN VIDEO CLIP)

GENE KIMMELMAN, CONSUMERS UNION: This kind of consolidation is good for investors because prices will actually go up. Investors could make more off this.

Not a good deal for consumers, though, who have been experiencing price declines and seeing cell phone service start to compete more and more, first against long distance, and then even for the local phone business. That could disappear little by little.

(END VIDEO CLIP)

CHERNOFF: Some industry analysts say there will still be plenty of competition, enough to hold down prices.

Before tossing back to you, let's have a quick check of the markets. Stocks are pretty much unchanged, and the enthusiasm from the big merger is being watered down by sharply higher oil prices, up for the third day in a row, up $2 a barrel.

But as you see, the market virtually unchanged, which is pretty impressive, considering the fact that we do have that jump in oil prices.

That is the latest from Wall Street. Fredricka, back to you.

WHITFIELD: All right, thanks a lot, Allan.

Well, you'll still have to return your seat to the full upright and locked position. But soon you won't have to turn off all of your electronic devices when the plane is about to take off.

Federal regulators voted today to allow wireless high-speed Internet access on commercial airlines. The FCC also discussed whether to end the ban on cell phone use during domestic flights, where they haven't taken any formal action as of yet.

How do you, the paying customer, feel about allowing cell phone use on flights? Great idea or would listening to your seat mate yakking away cause you to reach for the complimentary air sick bag or something? Send us your thoughts to LiveFrom@CNN.com.

PHILLIPS: Or just punch them out.

Well, if you like the idea of making calls from 35,000 feet, what about receiving a cell phone call anywhere from a telemarketer? That's one nightmare scenario making the rounds online.

CNN's Julie Vallese sorts fact from urban myth.

(BEGIN VIDEOTAPE)

JULIE VALLESE, CNN CORRESPONDENT (voice-over): The latest e-mail making its way into inboxes across country reads in part, "Starting January 1, 2005, all cell phone numbers will be made public to telemarketing firms. So this means, as of January 1, your cell phone may start ringing off the hook."

That, says the Federal Trade Commission, is...

LOIS GRACEMAN, FEDERAL TRADE COMMISSION: Absolutely bogus.

VALLESE: But it seems real. So real, the numbers added to the Do Not Call registry have spiked, from just a hundred thousand or so a day, into the millions.

GRACEMAN: Dating back to about three weeks ago, we saw first about a million numbers being added, than another two million. Last week, five million numbers were registered on the Do Not Call list.

VALLESE: And then the total for just one day, Monday, December 13, 1.5 million new numbers.

PATRICIA KACHURA, DIRECT MARKETING ASSOCIATION: It is against the DMA guidelines and ethical business practice to call consumers on their cell phones, because that is a call you must pay to receive.

VALLESE: Marketers say they know it's against the law, and they won't do it.

(on camera) So what prompted an e-mail with so many untruths? No one is quite sure, but it may have something to do with the publicity of a national cell phone directory but in order to have your name on that list you have to sign up. Being on the Do Not Call registry is a matter of choice, but for your cell phone, you don't really have to make the choice even if a cell phone directory is created.

KACHURA: Directory or no directory, telemarketers may not call consumers on their cell phones.

VALLESE: The e-mail also says consumers have until December 15 to sign up. That's also not true. It's an open registry and will remain that way. Julie Vallese, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: Under the gun at the Pentagon. What does the future hold for Defense Secretary Donald Rumsfeld? We'll talk about the Washington buzz straight ahead.

Later -- a seemingly routine trip to the gas pump turns out to be anything but. The story behind these amazing picture, straight ahead.

(COMMERCIAL BREAK)

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Aired December 15, 2004 - 13:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CO-HOST: Hostage situation, armed hijackers claiming they have bombs on a bus, demanding to be driven to an airport and put on a plane. We're LIVE FROM Athens, Greece.
FREDRICKA WHITFIELD, CO-HOST: Should you be vaccinated against anthrax? New information out today on protecting your health in a terror attack.

PHILLIPS: Airborne airtime. New federal rules about what you can and can't do aboard airline flights.

WHITFIELD: And Cuban dictator Fidel Castro says "bah humbug" to Christmas decorations at the U.S. diplomatic mission. We're the only network bringing you that story LIVE FROM Havana.

From the CNN Center in Atlanta, I'm Fredricka Whitfield, in for Miles O'Brien.

PHILLIPS: And I'm Kyra Phillips. CNN's LIVE FROM starts right now.

Fourteen hours into a hostage standoff in Athens, Greece, there's progress but still a long way to go. Attackers carrying explosives, guns, they stormed a commuter bus, taking about two dozen prisoners hostage (sic). Some of the hostages have already been released.

CNN's Alessio Vinci joins us now from Athens with more. What are the hijackers demanding, Alessio?

ALESSIO VINCI, CNN CORRESPONDENT: Hello, Kyra.

We do know at this time the hijackers are demanding a one million euro ransom. That's roughly $1.3 million ransom, as well as being able to drive the bus you see now to the airport in Athens and then be flown to Russia.

The $1.3 million ransom is the latest request. The hijackers throughout the day only asking for the bus to be driven to the airport and then be flown to Russia. This is the latest demand, the latest addition.

In addition to that, throughout this day the hostage-takers have released several hostages, 14 in total. The latest one, two about a half hour ago, bring a total of 14 released, which leaves seven hostages on the bus at this time, including the two hijackers, which they do have at this time. They have guns. They have also strapped explosives to their body, and they said that they will blow up the bus, should their demands not be met.

Police officials are also questioning some of the hostages that have been released throughout this day. They are concentrating on them, of course, first of all because they want to try to establish the identity of the hostage -- of the hijackers.

They do work under the assumption that they are of Albanian origin, that they are Albanian nationals. But they haven't identified yet their identity.

Also, they want to sort of find out more information about how the hostages are behaving. The hostages -- the former hostages are telling police officials that so far they've been treated well. As a matter of fact, earlier today inside the bus the hostage-takers even distributing some water, as well as some croissants, some cakes to the former -- to the hostages on that bus.

So it does appear that at least for the time being the situation inside the bus is tense, but calm.

Kyra, back to you.

PHILLIPS: Just a couple quick questions, Alessio. You mentioned that the hostage-takers may be Albanian. Do you know if they're related to any terrorist organization?

Also, you're talking about a number of those hostages already being released. Was that through negotiations? And were they all women and children?

VINCI: Let me start with the negotiations. First, there are no children on board. They have been released because of some negotiations. As a matter of fact, police officials are telling us that negotiations are going quite well. And that is why 14 hostages have been released. There are no -- no children on board, just men and women.

What was the first question, Kyra?

PHILLIPS: The alleged hostage-takers are Albanian. Do you know if they're tied to any terrorist organization?

VINCI: Right. Right. There are no -- there are no reports whatsoever suggesting that they are belonging to any kind of international terrorist group. As a matter of fact, police officials here are telling us that they believe that they are -- that they are dealing with criminals, rather than terrorists.

Therefore, they're working under that assumption, that there are no other demands, other than a money ransom, as well as being able to leave the country safely.

PHILLIPS: Alessio Vinci, LIVE FROM Athens, Greece. Thanks so much, Alessio -- Fred.

WHITFIELD: All right. We're going to talk a little more about that standoff taking place in Greece. And hostage -- rather, CNN's Mike Brooks is used to the negotiations that take place.

You were formerly a hostage negotiator. What is the difference, when we talk about negotiations versus communication? Because oftentime, authorities don't want to say they're actually negotiating or giving in to hostage-takers.

MIKE BROOKS, CNN LAW ENFORCEMENT ANALYST: Well, it sounds like in this particular case it is going extremely well. You have a 14- hour standoff, and you have 14 hostages released. I think that's very, very good.

The hostage negotiators in Athens are also extremely well trained. They've been trained by the FBI, Quantico, Virginia, as well as metropolitan police in London, two of the top organizations on dealing with hostage situations.

Now, we hear from Alessio that they're also believed to be criminals. You define -- you divide hostage-takers up into three categories: criminals, crusaders and what I call crazies -- people who have an altered mental status.

The hardest ones to deal with the crusaders, the terrorist types.

But the easiest ones, usually, to deal with are the criminals. These are the people that know the system. They know how to negotiate. They do know how to communicate with police. They know what police can give them, and what they can't realistically.

So far, so good, I would say on the negotiation side. But it's nightfall there now. As long as a dialogue keeps going, I think this situation is looking pretty good.

WHITFIELD: And you want to call these criminals, because there is this more than a million dollar demand being mad, more than a million euros, being made, in exchange for, also, access to a plane to get to Russia. They're not professing any sort of political motivations here.

BROOKS: None whatsoever, nothing of any political or social objectives that they're trying to achieve through the hostage taking. And we're hearing also from some reporting there that they know that these people are apparently former criminals. So that's why they believe that they are dealing with criminals.

But, again, they want to make sure that it does not go mobile. You see a bus in front of the bus where the hostage taking is going on. You see a police car in the back.

If they do have explosives, and they know for sure that they have a weapon, because they fired some shots out of the window of the bus early on in the hostage taking, you don't want these explosives on the bus as a mobile bomb, going through the city of Athens. WHITFIELD: All right. Former hostage negotiator yourself, Mike Brooks, thanks so much.

BROOKS: Thanks.

WHITFIELD: Kyra.

PHILLIPS: Half a world away, a bomb blast is causing more chaos in Iraq, just weeks before the all-important election. That bomb exploded outside a mosque in the holy city of Karbala.

CNN's Chris Lawrence has details on casualties and other developments now in Iraq.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT: On the first day of campaigning for next month's election here in Iraq, a bomb has exploded at a mosque in Karbala. The bomb exploded at the entrance to a mosque, and the blast killed at least seven Iraqi people and wounded many more.

All of this comes as many people predicted an upsurge in violence here in Iraq, as we get closer to next month's elections.

And on this same day, interim Prime Minister Ayad Allawi promised to rebuild Iraq's army, as he announced his own candidacy for next month's elections. Allawi's coalition is more than 200 strong, but he's already being accused by some here in Iraq of playing politics.

It was Allawi himself who, just yesterday, surprised a lot of people by announcing that the trials for Saddam Hussein's top lieutenants could begin as early as next week.

CNN has now learned from a well-informed observer that this is not a trial but more of an investigative hearing, where the judge will hear evidence, listen to questions, listen to the answers to question, and try to determine if there is enough evidence to go forward with a trial.

The men will have certain rights. They will be represented by a lawyer. And this part of the proceeding will be held confidentially, not out in public.

And it will involve two defendants. One is a former Iraqi army commander. The other is Ali Hassan al-Majid, otherwise known as Chemical Ali. Now, he is accused of committing some of the worst crime during Saddam Hussein's rule, including gassing nearly 5,000 Kurds in northern Iraq during the late 1980s.

As for Saddam Hussein, we are told that he will be tried after his aides so that prosecutors can gather more evidence from the trials of the men who worked for him, collecting more evidence to perhaps tie some of the killings that were committed during his rule to a direct order from Saddam Hussein.

Chris Lawrence, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: And the death toll for American troops in Iraq is rising. Military officials now say that two Americans, a soldier and Marine, were killed yesterday. Still no details on how or where they were killed.

WHITFIELD: Memories are still fresh three years after a string of deadly anthrax attacks in the U.S. Anthrax letters sent to several media outlets and a Senate office building left five people dead and 22 others sick.

If a more widespread attack were to occur, researchers say they now know how to prevent a massive outbreak.

(BEGIN VIDEO CLIP)

RON BROOKMEYER, JOHNS HOPKINS SCHOOL OF PUBLIC HEALTH: Our research shows that if we could get antibiotics to people within six days of exposure to the anthrax, we could prevent 70 percent of cases.

(END VIDEO CLIP)

WHITFIELD: Brookmeyer says the challenge is identifying anthrax exposure within six days -- Kyra.

PHILLIPS: Straight ahead, how did issues from Bernard Kerik's past get past the White House staff? Some surprising public reports today. That story just ahead.

Caught on tape, an explosion situation at the gas pump. That story behind these pretty amazing pictures, later on LIVE FROM.

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UNIDENTIFIED MALE: I realized how close I come to dying. And knowing that, you know, if it wasn't for having the presence of God there giving me the strength to do what I need to do to survive, I wouldn't have been able to come back.

(END VIDEO CLIP)

PHILLIPS: Surviving in Iraq. The personal side to the political debate over equipping soldiers.

ANNOUNCER: You're watching LIVE FROM on CNN, the most trusted name in news.

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WHITFIELD: Well, now more on the Bernard Kerik kafuffle and the rapid collapse of his nomination to head homeland security.

In today's "New York Times," questions about how the White House vetting process missed a long list of potential land mines, including an illegal nanny, allegations of financial improprieties, an extramarital afar and even possible mob ties.

"The Times" reports the president, who first met Kerik shortly after 9/11 in New York, was very fond of the New York police commissioner.

"The Times" also says the administration nominated Kerik before a full-scale FBI background check could be conducted. And reportedly, no one consulted the one person in the West Wing familiar with Kerik's background: Frances Townsend. The Bush adviser on homeland security and a former federal prosecutor in New York, was also in the running for that job.

Meanwhile, New York blood may be thicker than partisan water. New York Democratic Senator Charles Schumer regrets the fact that the former Big Apple police commissioner had to withdraw his name from the running.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: I think that Bernie Kerik had no choice but to step down. He did understand the needs of homeland security and of New York and would have been a fighter for them. And we hope that the president nominates somebody who will understand the needs of homeland security as strongly as Bernie Kerik did.

(END VIDEO CLIP)

PHILLIPS: The White House shifts focus to a new nominee for the homeland security job. Some observers wonder how Kerik's fall from grace might impact another New Yorker's credibility.

Rudy Giuliani pushed hard for Kerik's nomination. CNN's Mary Snow looks at how Giuliani might suffer from the fallout of the nomination failure.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Bernard Kerik's star fell swiftly within just one week. But the question is, will Kerik's past tarnish Rudy Giuliani's political future and a potential run for president?

FRED DICKER, "NEW YORK POST": So I think it's a blow to him. It's certainly not fatal, although we don't fully know yet what's going to come out.

SNOW: Giuliani said he was proud when Kerik was nominated to be homeland security director.

RUDY GIULIANI, FORMER MAYOR OF NEW YORK: I know personally the qualities that he has and what a good choice this is for the United States.

SNOW: But a week later...

GIULIANI: It's an embarrassment to me and to Bernie.

SNOW: Giuliani met privately with the president over the weekend and says he remains very close with him. Giuliani's relationship with him is closely watched since he's seen as a rising Republican star.

GIULIANI: Welcome to the capital of the world.

SNOW: Some say the Kerik flap is particularly damaging, because it was about the homeland security director. And Giuliani catapulted onto the national arena because of his leadership on September 11 and the days after.

WAYNE BARRETT, "VILLAGE VOICE"/AUTHOR: But this is his strong suit. And so when it's your strong suit and you've nominated somebody who blew up so immediately with so many problems, I think it really damages his credentials in terms of the -- he's kind of perceived nationally as sort of the front lines of our anti-terrorism defenses.

SNOW: But some New York columnists don't think the Kerik sting will deal a heavy punch. Observers say, though, the Kerik flap adds a new dimension.

DICKER: From now on, as we're doing right now, when people talk about Giuliani as a candidate, a potential candidate for president -- and make no mistake about it, people around Giuliani are talking about him this way -- people are going to be talking about Bernie Kerik and the problems here, the screw up by Giuliani.

SNOW: Mary Snow, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: Well, across the pond now, as they say, a high- ranking British government minister, that of David Blunkett, resigns over an interesting twist to the "nanny-gate" scandal.

Our Robin Oakley is in London with the full details on that -- Robin.

ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR: Well, Fredricka, we just heard that David Blunkett, home secretary, or internal affairs minister, as many countries would call him, has resigned over the repercussions, really, of his affair with a married woman publisher, Mrs. Kimberly Quinn.

It's not the fact that he had an affair with her which has led to his political downfall, but the allegations that he had misused his office for her benefit, particularly in fast-tracking a visa for her nanny.

There are other allegations: that he used a government car to drive her about, that he'd stationed a policeman on her door at one occasion, that he'd given her parents privileged information about a security scare, that he misused a House of Commons first class rail ticket by handing it to Mrs. Quinn.

And there have been constant stories day after day dominating the British media.

Tony Blair stuck by David Blunkett, his embattled minister, said he was a first class minister and would continue to be. He's invested much of his personal credit in supporting Mr. Blunkett.

But I think the sheer weight of media attention and opposition attacks on Mr. Blunkett has reached the point where it has overshadowed his ability to do his job. It has come to overshadow the government's agenda on law and order and counter-terrorism, and Mr. Blunkett has felt he's had to go, Fredricka.

WHITFIELD: And, Robin, he's a trusted ally of the prime minister, Tony Blair. Any reaction coming from Blair?

OAKLEY: No, we've not heard anything from Tony Blair as yet. We will, no doubt, get the normal formal exchange of letters between the prime minister and departing minister.

It's a big hole for Tony Blair, though. This is the key department in the electoral program that he set out, and we're expecting an election next May in Britain.

The queen's speech, recently delivered, set out a massive series of bills on counter-terrorism, crime and law and order, which David Blunkett was to oversee. The introduction of identity cards, for example.

It will be very difficult for a new man to come in and impart the same kind of authority to that drive, on the law and order and counter-terrorism questions. So it's a big loss for Tony Blair.

We're expecting, perhaps, that Charles Clarke, the current education secretary, will be the man to take over the home secretary's post. But nobody's for sure yet who will get it.

But for Tony Blair, it's the loss, really, of one of the outstanding ministers in his government, the highest ranking minister, who's had to go since Labour came to power in 1997.

So it will be a huge blow to him and a massive personal blow to Mr. Blunkett, who carries huge personal respect throughout British politic, because, of course, he is a blind man who has had to work very, very hard to get to the position he has and who's renowned as one of the hardest working and most intelligent men in politics -- Fredricka.

WHITFIELD: All right. Robin Oakley in London, thanks so much for those details.

(BEGIN VIDEO CLIP) PHILLIPS (voice-over): Next on LIVE FROM, airborne airtime? Why the friendly skies might become a little unfriendly for people trying to escape cell phones.

Later on LIVE FROM...

UNIDENTIFIED MALE: I go to bed worrying about it at night, and I wake up every morning worrying about it.

PHILLIPS: But is the Department of Homeland Security worried enough about a terror attack on the No. 1 tourist destination in the world? Orlando says it's been short-changed.

Later on LIVE FROM, a defense system designed to protect the U.S. against enemy missiles. Will it ever get off the ground?

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PHILLIPS: Can you hear me now? Can you hear me now? Can you hear me now? It's not working, Fred.

If you're a Sprint or Nextel Wireless customer, listen up. The third and fifth largest cell phone companies are joining forces in a merger worth some 35 million bucks. It's a big deal in the wireless industry and for customers.

CNN's Allan Chernoff join us from New York to explain what it all means.

Hi, Allan.

ALLAN CHERNOFF, CNN CORRESPONDENT: Kyra, we have got lots of merger mania hitting the telecom industry.

Just a few weeks ago, Cingular and AT&T Wireless combined to create the largest wireless company. Now we have Sprint and Nextel in a $35 billion deal.

The deal would strengthen the company's position as the No. 3 wireless provider, after Cingular and Verizon Wireless. They'll have 35 million subscribers.

Now, Nextel specializes on mobile phones that have walkie- talkies. The company needed to upgrade its technology to offer more services like Internet browsing, and now it can simply make use of Sprint's infrastructure.

Sprint, on the other hand, will be able to offer solid walkie- talkie service. It does have a service out there, but the quality is not nearly as good as Nextel's.

For both companies, the deal means big cost savings to the tune of $12 billion. And here's what they plan to do: reduce the number cell sites, cut infrastructure spending and combine, billing, customer service and marketing operations. And you know that will mean job cuts.

The companies plan to spin off Sprint's local phone business. And that means Sprint Nextel will be what Wall Street calls a pure play in wireless. Analysts say the new company will be telling consumers cut the cord, give up your home phone and go completely wireless -- Kyra.

PHILLIPS: A lot of friends that do that. But let's get down to business here and talk about how much is this going to cost for you and me and everybody else?

CHERNOFF: Well, the company's saying this is wonderful news -- that's a quote -- wonderful news for their customers. But consumer advocates aren't so sure. In fact, they're worried the trend towards consolidation means less competition and probably higher prices.

(BEGIN VIDEO CLIP)

GENE KIMMELMAN, CONSUMERS UNION: This kind of consolidation is good for investors because prices will actually go up. Investors could make more off this.

Not a good deal for consumers, though, who have been experiencing price declines and seeing cell phone service start to compete more and more, first against long distance, and then even for the local phone business. That could disappear little by little.

(END VIDEO CLIP)

CHERNOFF: Some industry analysts say there will still be plenty of competition, enough to hold down prices.

Before tossing back to you, let's have a quick check of the markets. Stocks are pretty much unchanged, and the enthusiasm from the big merger is being watered down by sharply higher oil prices, up for the third day in a row, up $2 a barrel.

But as you see, the market virtually unchanged, which is pretty impressive, considering the fact that we do have that jump in oil prices.

That is the latest from Wall Street. Fredricka, back to you.

WHITFIELD: All right, thanks a lot, Allan.

Well, you'll still have to return your seat to the full upright and locked position. But soon you won't have to turn off all of your electronic devices when the plane is about to take off.

Federal regulators voted today to allow wireless high-speed Internet access on commercial airlines. The FCC also discussed whether to end the ban on cell phone use during domestic flights, where they haven't taken any formal action as of yet.

How do you, the paying customer, feel about allowing cell phone use on flights? Great idea or would listening to your seat mate yakking away cause you to reach for the complimentary air sick bag or something? Send us your thoughts to LiveFrom@CNN.com.

PHILLIPS: Or just punch them out.

Well, if you like the idea of making calls from 35,000 feet, what about receiving a cell phone call anywhere from a telemarketer? That's one nightmare scenario making the rounds online.

CNN's Julie Vallese sorts fact from urban myth.

(BEGIN VIDEOTAPE)

JULIE VALLESE, CNN CORRESPONDENT (voice-over): The latest e-mail making its way into inboxes across country reads in part, "Starting January 1, 2005, all cell phone numbers will be made public to telemarketing firms. So this means, as of January 1, your cell phone may start ringing off the hook."

That, says the Federal Trade Commission, is...

LOIS GRACEMAN, FEDERAL TRADE COMMISSION: Absolutely bogus.

VALLESE: But it seems real. So real, the numbers added to the Do Not Call registry have spiked, from just a hundred thousand or so a day, into the millions.

GRACEMAN: Dating back to about three weeks ago, we saw first about a million numbers being added, than another two million. Last week, five million numbers were registered on the Do Not Call list.

VALLESE: And then the total for just one day, Monday, December 13, 1.5 million new numbers.

PATRICIA KACHURA, DIRECT MARKETING ASSOCIATION: It is against the DMA guidelines and ethical business practice to call consumers on their cell phones, because that is a call you must pay to receive.

VALLESE: Marketers say they know it's against the law, and they won't do it.

(on camera) So what prompted an e-mail with so many untruths? No one is quite sure, but it may have something to do with the publicity of a national cell phone directory but in order to have your name on that list you have to sign up. Being on the Do Not Call registry is a matter of choice, but for your cell phone, you don't really have to make the choice even if a cell phone directory is created.

KACHURA: Directory or no directory, telemarketers may not call consumers on their cell phones.

VALLESE: The e-mail also says consumers have until December 15 to sign up. That's also not true. It's an open registry and will remain that way. Julie Vallese, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: Under the gun at the Pentagon. What does the future hold for Defense Secretary Donald Rumsfeld? We'll talk about the Washington buzz straight ahead.

Later -- a seemingly routine trip to the gas pump turns out to be anything but. The story behind these amazing picture, straight ahead.

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