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CNN Live Today

New York City Boosts Security In Subways; Information Leads To Al Qaeda Raid; Rove To Testify Again; Unemployment Rate Up Slightly; Bankruptcy Deadline Tips

Aired October 07, 2005 - 10:00   ET

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

TONY HARRIS, CNN ANCHOR: You guys. Have a great weekend.
And good morning, everyone. I'm Tony Harris at the CNN Center in Atlanta. Daryn Kagan has the day off.

The morning rush has waned in New York, the heightened security attention has not. Wary New Yorkers snaked beneath the city this morning well aware of a terror alert that the subway system could be targeted for attack. Let's begin our coverage at the city hub of rail travel. CNN's Alina Cho is at Penn Station where a main entrance has just been closed.

Alina, what can you tell us?

ALINA CHO, CNN CORRESPONDENT: Well, Tony, we can tell you that the entrance right behind me, one of the main entrances, the northwest entrance to Penn Station, is sealed off for now. Penn Station, for those of you not familiar with New York, is one of the largest subway stations here.

What we can tell you is that the Amtrak portion of the station, it appears at this point, is sealed off. Though we are told that some Amtrak trains are now boarding. No new riders, however, are being allowed in and there is a heavy police and security presence, including at least two men in hazmat suits.

Now after yesterday's highly publicized news conference, city officials are not taking any chances.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I don't feel 100 percent safe, to be honest.

ALINA CHO, (voice over): New York subway commuters are on high alert after city officials went public Thursday with what they called a specific threat against New York's subway system.

MAYOR MICHAEL BLOOMBERG, NEW YORK: This is the first time that we have had a threat with this level of specificity.

CHO: The plot, according to law enforcement, involves the use of explosives, perhaps hidden in babe carriages, and to be carried out in the coming days by a group of 15 to 20 people. But the Bush administration suggests the threat may be overblown. The Department of Homeland Security is saying it's of doubtful credibility. Four- and-a-half million New Yorkers ride the subways each weekday. While there's concern, some are taking the heightened security in stride.

UNIDENTIFIED FEMALE: You become a little apprehensive, but I think in time we're kind of conditioned to expect some sort of stress or threat level and you just move on with what you have to do.

UNIDENTIFIED MALE: Everybody's going to still take a train whether there's a bomb treat or not. It's like, what am I going do? Just hope it's not my train.

UNIDENTIFIED FEMALE: We have police on the train.

CHO: Police will be stepping up their random commuter searches. More uniformed and undercover officers will be deployed in the subway system. New York's mayor wants riders to be alert and not afraid.

BLOOMBERG: We ask that the public remain vigilant. If you see something, say something.

(END VIDEOTAPE)

CHO: Very good advice.

Now most commuters we spoke to this morning say that they do believe that New York will eventually be the target of a terrorist attack. But, Tony, they say they won't let that change their routine. They are riding the subway today. Of course, this may change things moderately, but we are watching it very closely here at Penn Station and we will bring you more on this as more information comes in to us.

Tony.

HARRIS: And, Alina, just to be sure about this and to be absolutely clear about this, this new situation that you're reporting on right now has not lead to anyone being asked to leave the station. No evacuations at this point, correct?

CHO: Not that we know of, Tony. What we are told from our producer inside is that the Amtrak portion of the station, in addition to this northwest entrance behind me, has been sealed off. Now some Amtrak train, we understand, are boarding right now, but they are not allowing any new riders in. And, of course, there's very heavy police and security personnel there.

HARRIS: Alina Cho on the story for us in New York City.

Alina, thank you.

While New York officials sound the alarm, Homeland Security officials are downplaying the credibility of the threat. Why the vastly different views of the same information? For that we turn to CNN Homeland Security Correspondent Jeanne Meserve in Washington.

Jeanne, good morning.

JEANNE MESERVE, CNN CORRESPONDENT: Good morning, Tony.

Analysis of the intelligence continues, but one U.S. official describes it as being of doubtful credibility. Another says he is "not altogether sure how solid this is." More than one described the threat information as not viable.

Federal officials seemed surprised at New York's decision to make it public. According to an official with the Department of Homeland Security, this specific intelligence about threats to New York City transit came to them in recent days and was shared promptly with officials in New York. But, according to an administration official, subsequent information collected overseas added doubt to the information's credibility and there was no corroboration.

And so yesterday afternoon, as New York announced upgrades in transit security, the Department of Homeland Security said it had no intention of modifying the city's or the nation's terror threat level. Administration officials said they respected New York's actions but describe them as being taken "out of an abundance of caution."

Tony.

HARRIS: OK, Jeanne, thank you.

And we have yet another story stemming from that alleged terror plot. Sources tell CNN that the discovery of that intelligence also led to a raid that netted three al Qaeda suspects. Here with information on this developing story is CNN Pentagon Correspondent Barbara Starr.

Barbara, good morning to you.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Tony.

Well, all of this may be tracing back to Iraq. U.S. military officials say on Wednesday night there was a raid south of Baghdad in a place called Musayyib. That they went there as a result of the original intelligence they gathered that had that New York City subway threat in it. They're not talking about the original intelligence, but that that led them to Musayyib.

They went on a raid targeting three individuals by name. They believe what they found there was an al Qaeda cell in Iraq that was planning attacks outside of Iraq possibly, possibly, in the United States. Well placed military sources say this Musayyib raid was carried out by U.S. and Iraqi special forces, along with officials, if you will, from what is called another government agency. And, of course, here in Washington that's code word for the CIA.

At the same time, Tony, there is yet another al Qaeda-related story unfolding. It is separate, but it does involve the very top levels of al Qaeda. U.S. officials say they have come into possession of a letter from Ayman al-Zawahiri, the number two man to Osama bin Baden, a letter he wrote to Abu Musab al-Zarqawi, a leader of al Qaeda inside Iraq. A letter about al Qaeda's strategy and concerns. And in this letter, U.S. officials say, Zawahiri lays out several of his concerns. He acknowledges first that many al Qaeda leaders have been lost, if you will. Of course, captured or killed. He talks about the fact that al Qaeda is resigned to defeat in Afghanistan. He also talks about they are stretched for money and their communications are in trouble. That they're really not plugged into what is going on.

He also talks about he asks Zarqawi not behead his hostages and says that may be alienating the Muslim world. He offers other alternatives. U.S. officials say they are absolutely convinced this letter is genuine. They say that is based on the sources and methods by which they got it and they say that is very, very sensitive at this time.

Tony.

HARRIS: Barbara, when did U.S. officials get this letter?

STARR: We asked that question this morning. We got this following answer. That it was within days and weeks and possibly a few months, but it is fairly recent they tell us. And they are absolutely convinced it genuinely is from Osama bin Laden's number two man to the number one al Qaeda leader inside Iraq.

Tony.

HARRIS: OK. Barbara Starr at the Pentagon for us.

Barbara, thank you.

I want to show you some new video just into CNN. Let's take you back to New York City now and Penn Station. And you heard Alina Cho referring to this scene that you're seeing inside Penn Station right now. You're going to see, there they are, the men in the hazmat suits walking around the platform there. This is one of the main platforms for Amtrak, for boarding and unboarding the trains there at Amtrak.

Once again, let's rewind that and show that again. This is the scene just a few moments ago and we can presume still ongoing inside Penn Station right now at the Amtrak platform. Men in hazmat suits checking out some kind of a situation there. We don't know more about what it is they're looking at, what they're looking for, but there is the activity right now.

We will get back to Alina Cho in just a few moments and get an update on the situation. What we do understand is that a main entrance has been closed at Penn Station to the Amtrak platform, but that Amtrak trains are still boarding. We'll continue to follow the latest developments in this story.

And be sure to stay tuned to CNN day and night for the most reliable news about your security.

And back to the United States. A man so close to the president that he's sometimes called Bush's brain, is facing another grand jury appearance. Karl Rove has been called to testify for a fourth time in connection with a leak of a CIA officer's identity and the political damage could ripple all the way to the White House. CNN National Correspondent Bob Franken joins us with the legal and political implications.

Bob, good morning.

BOB FRANKEN, CNN CORRESPONDENT: Good morning.

Well, we had thought that this long, long investigation could be soon over, but now we're finding out that the reality is not quite yet.

(BEGIN VIDEOTAPE)

FRANKEN, (voice over): Karl Rove, one of the central figures in this investigation, and a central figure in the political career of George W. Bush, will be testifying for at least the fourth time before this grand jury. Special prosecutor Patrick Fitzgerald, according to sources, has not given Rove any assurance that he will not face indictment as this probe continues into a public disclosure of Valerie Plame's identity.

Plame, who was an undercover operative for the CIA, is the wife of Joseph Wilson, who had become a harsh critic of the administration's claims about Iraq and weapons of mass destruction. After an uproar following the disclosure of Plame's identity in July 2003, Fitzgerald began his investigation.

Under pressure, including in one celebrated case jail time, several reporters testified. Some, including "Time" magazine's Matthew Cooper, said they had discussed the matter with Rove. Rove's lawyer has repeatedly insisted that his client did not identify Plame as a secret agent, did not know she was one. He also contends Rove is appearing voluntarily, that he's not received a so-called target letter which would identify him as a person the grand jury was likely to indict. Also named as a source for reporters is the vice president's chief of staff, Lewis "Scoter" Libby.

As Fitzgerald's prolonged investigation seems to be entering the final phases, the president continues to dodge questions about whether he will remove anyone from his administration who might be indicted.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm not going to talk about it until the investigation is complete and it's important that the investigation run its course.

(END VIDEOTAPE)

FRANKEN: Rove's attorney says that he has been assured no decisions have been made by Fitzgerald on whether there will be any charges. Of course, Tony, no assurances that there won't be either.

HARRIS: That's true. CNN National Correspondent Bob Franken.

Bob, thank you. Let's take you back to New York City now and to CNN's Alina Cho. We want to try to put as fine a point as we can on the information that we have so far on this developing situation at Penn Station.

And, Alina, we just saw some video, the first video of the scene you were describing just a few moments ago.

CHO: That's right, Tony, and we'll get to that in a moment. But first, a little bit of background in case you missed it at the top of the hour.

What we can tell you at this point is that the entrance right behind me at Penn Station, the northwest entrance, one of the main ones, has been sealed off. Now for people not familiar with New York City, this is one of the largest subway stations in New York. The main entrance has been sealed off, or at least one of them.

And what we are told from our producer who was just on the scene inside is that the Amtrak portion of the station has also been sealed off, meaning that no new riders are being allowed in. What we are also being told is that some Amtrak trains are still boarding. But, of course, there is heavy police and security personnel. And what we are told now is at least four people in hazmat suits are on the scene there trying to figure out what is going on down there.

Now, we want to be able to put this in perspective because, remember, yesterday, just yesterday, there was a highly publicized news conference between New York officials and the FBI announcing this terror threat against the subway system. And we want to be able to tell you as well that this kind of thing has happened before. There have been these types of scares before and later they turned out to be nothing.

And so it is important to point out that it is entirely possible that they are acting out of an abundance of caution. We will just have to wait and see. Of course, we are watching it very, very closely.

But, Tony, I can tell you that for the most part, commuters seem to be taking this in stride. Four-and-a-half million people ride the subways here in New York each and every work day and it appears they are riding it today.

HARRIS: Taking it in stride. You're talking about four men in hazmat suits and you're telling me that the folks there in New York, hearty souls, we understand that, are seemingly taking this in stride. Alina Cho, we appreciate it. Thank you. And we'll certainly come back to you for further updates on this story.

Avian flu, bird flu, whatever you want to call it, it's a danger to the world's population. Ahead on CNN LIVE TODAY, what the White House and other nations are doing today to try and prevent a pandemic.

Also, hundreds of thousands of people victims of Hurricanes Katrina and Rita, they have no homes and no jobs. The latest jobs report just ahead. And a Friday night ritual for one football player in an unfamiliar place thanks to Katrina. And he's finishing high school and playing the game he loves hundreds of miles from home and friends.

(COMMERCIAL BREAK)

HARRIS: Pictures back from New York City now. Just a situation that we're continuing to follow there at Penn Station. The northwest entrance to Penn Station has been closed and that, we understand, is very near the Amtrak gates. The boarding platforms are, obviously, below the level that you're looking at right now.

And we understand that four men in hazmat suits are investigating a situation there. You see one of the men in the hazmat suits now putting on gloves. But we understand that the Amtrak trains are still being boarded at this time. So we'll continue to follow this situation.

The northwest entrance has been closed as the subway and train system throughout New York continues to be on heightened alert today. We'll continue to follow this story.

The latest jobs report is just out and for the first time it reflects the impact of Hurricane Katrina on the labor market. The national unemployment rate has moved up to 5.1 percent, but that figure may not tell the whole story. Joining us from Washington is Treasury Secretary John Snow.

Mr. Secretary, thanks for talking to us this morning.

JOHN SNOW, TREASURY SECRETARY: Hey, thanks, Tony. Nice to be on with you.

HARRIS: Well, give us a sense, your reaction to the numbers. Some economists were predicting that 150,000 jobs would be lost. The number comes in well below that. What's your reaction?

SNOW: Well, my reaction, Tony, is that the overall economy continues to be strong, growing and expanding. We wouldn't be seeing the sort of numbers we just saw unless that was the case. The numbers, as you said, came in well below the most private sector estimates. And if you go back to July and August, we add some 77,000 jobs, which tells us that the American economy's performing well. You never want to be hit by something like Katrina, but if you're going to be hit with it, it's a lot better to be hit with it at a time when the economy is creating jobs, growing and expanding and businesses are profitable.

HARRIS: Right. Mr. Secretary, you're worried that the numbers will uptick when we get the reporting for next month? You're concerned that we might see these numbers actually get a little worse?

SNOW: No, I would expect the numbers to be better, actually, Tony, because we're now getting into that rebuilding phase and people are coming back. Businesses are beginning to open and hire. So I would think next month we'll see better numbers. HARRIS: Well, how concerned are you, generally speaking, that some of the jobs that were lost in the Gulf Coast region by these twin hurricanes, Katrina and Rita, that some of those jobs may not come back and some of those businesses impacted may not come back?

SNOW: Well, we're confident that we'll see the region rebuild. Businesses come back. The administration, working with Congress, is putting place a lot of incentives. Incentives for small business to invest. Incentives for homesteading. Incentives for the private sector to come back in and invest.

If we get the private sector coming back and investing, we're going to see the region rebuild. And I've talked to a number of the victims all across the country. Most of them are anxious to go back and looking to go back. And once businesses open and are hiring, they're going go back.

HARRIS: How do you believe the financial markets, just sort of broad this out just a bit, the financial markets, the market leaders, the other financial indices and markets overall, how do you believe they are responding to these hurricanes and the impact of the hurricanes on the Gulf region? And what are folks telling you about our ability to move forward and rebuild the area with so many other big items on our collective plate?

SNOW: Well, first of all, I'm confident the region will be rebuilt and that people will have the chance to rebuild their lives. And the private sector will lead the way. These incentives that we're putting in place will help drive the private sector.

And, overall, we're going do this, I'm confident, in a way that's fiscally responsible so we don't get off our path to cut the deficit down. We've got to keep faith with financial markets even as we met the needs of the region.

And we can do both. We can rebuild the region and give incentives for people to come back while doing so in a fiscally responsible way. And many of these estimates I've seen, Tony, seem to me to be unrealistically high.

HARRIS: $200 billion.

SNOW: Yes, yesterday the CBO came in with a number that's well south of that and I think the numbers well south of that are much more realistic.

HARRIS: Secretary Snow, thanks for talking with us.

SNOW: Thank you.

HARRIS: Bankruptcy it's a step, well, many hurricane victims are trying desperately to avoid. A new law just days away would make it more difficult to file for bankruptcy. Ahead, Gerri Willis and her top five tips for those trying to beat a filing deadline.

And later, a bite on the hand and a slap on the wrist. Why one woman's encounter with an alligator got her into trouble in more ways than one.

(COMMERCIAL BREAK)

HARRIS: Another look now at these pictures coming out of New York's Penn Station. Here's the situation, New York and Amtrak police have cordoned off one of the main entrances to New York City's Penn Station. Now this happened at about 9:30 this morning.

And what it is right now it's just allowing access only to security personnel. And we understand that some of the Amtrak trains are still boarding and the closure comes in just a few hours we're expecting to hear some comments from Mayor Michael Bloomberg and we'll certainly get an update on this situation, what he's learning about it and what he can share with us.

But right now, new video coming out of New York City and Penn Station of men in hazmat suits working inside Penn Station right now. We'll continue to get new pictures in and update this story as the morning progresses.

And let's stay in New York now for a check of the markets. Let's take a look at the Big Board on Wall Street and see how the market is responding to the job's report. The Dow up 33 points at 10,321. Just about an hour into trading.

Two days from now a new bankruptcy law takes effect. It will make it harder for many people to file. The record number of filings are being processed as people try to beat the deadline. If you're a last-minute filer, today's "Top Five Tips" can help. CNN Personal Finance Editor, Gerri Willis, join us now to talk us through this situation. The "Top Five Tip," I have them in my hand.

And, Gerri, good morning to you.

GERRI WILLIS, CNN CORRESPONDENT: Good morning, Tony. Good to see you.

HARRIS: Good to see you.

And you start here's your first bit of advice. Fill out a skeleton. What do you mean by that, Gerri.

WILLIS: Well, guess what, you can get an extension. The big problem right now, the deadline is hard upon us. And if you really want to file bankruptcy, you can get that 15 day extension by filing something the experts call the skeleton. It's really a voluntary petition and it just gives a thumbnail of your situation, gives you a two-week window. If you want to see this document, go to uscourts.gov. You can see a copy of the thing and what you need to fill it out. Understand, it's not cheep to file, $209.

HARRIS: Really? To file? Oh, my goodness.

All right. Your second tip is, find a lawyer in a pinch.

WILLIS: Before you find that lawyer, I've got to talk to you about documents, because this is the thing that hamstrings so many people, Tony. They don't have the right documents, they take months and months to get them together. Listen to this list. You've got to have the names of your creditors, their addresses, how much you owe them, recent credit card statements, bank accounts, pay stubs. In short, your entire financial life on paper. You want to have everything available for the court to peruse, even a list of your living expenses month to month so the court can get a sense of how much money you're spending.

HARRIS: Wow. OK. I jumped ahead on the tip list.

WILLIS: Lawyers.

HARRIS: Now, attorneys. Find one and in a hurry.

WILLIS: Yes, you've got to find that lawyer and in a hurry. One short cut here, go to the bankruptcy clerk and ask them, hey, who is the good bankruptcy attorney here. And a couple other places to go, your local bar association, the American Board Certification Web site, the National Association of Consumer Bankruptcy Attorneys. All these people can help you find somebody who can help you.

HARRIS: And you know what, Gerri, the one thing you hope to save when you file for bankruptcy is your home.

WILLIS: You bet. And I've got to tell you, Tony, if you're filing for that fresh start bankruptcy, that's the one that erases all of your debt, you may not be able to. You've got to be really careful here. There's something called a homestead exemption in many states and basically most state protect your home up to a certain value. But if you owe a lot of money and your house is worth more than that, they're going to sell your house. If you want to save that house, you may be better off filing a Chapter 13. This is a different kind of bankruptcy. You have to pay the money back, but over a longer period of time.

HARRIS: You know the folks who were victims and escaped and survived Hurricane Katrina are now trying to put their lives back together. You're saying that there may be a double whammy out there waiting for them.

WILLIS: Yes. I mean, the double whammy is this new bankruptcy law makes it harder for people to file. It's going to be very difficult for people. But here's the good news. The Justice Department is easing some of these restrictions. You'll want to check them out with an attorney, see if these restrictions that have been eased will help you, help you in your situation.

There is some good news for those people. But, at the end of day, I've got to tell you, Tony, this change in law, very big difference for consumers out there. You've got to be really careful. The bottom line is, if you can avoid bankruptcy, do.

HARRIS: Yes. And most of us do.

WILLIS: You know why? Your credit is in the toilet for seven years and it's not just people lending you money who care, it's also people who might hire you.

HARRIS: Yes. Gerri Willis. Good to se you, lady.

WILLIS: Good to see you.

HARRIS: Have a good weekend.

WILLIS: Thank you.

HARRIS: We are monitoring developments in New York City surrounding the threat to the subway system. Parts of Penn Station shut down right now and hazmat crews are inside. We'll get the latest from our Alina Cho in a live report straight ahead.

Also amid warnings of a possible bird flu pandemic. It's not exactly comforting when U.S. health officials say we're not ready. The effort's underway around the globe to stop a crisis before it spreads, when CNN LIVE TODAY rolls on.

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