Return to Transcripts main page

American Morning

Investigation Under Way into Deadly Attack on U.S. Dining Hall; In Maryland, Six People in Custody in Connection with Arson

Aired December 22, 2004 - 07:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: What happened in that deadly attack in Mosul? tiny holes found in kitchen equipment leading investigators to a new theory of a planted bomb.
And The ice storm. Snow, and sleet and freezing rain coming down now, and it will go on for hours, a big winter storm with potential for holiday havoc on this AMERICAN MORNING.

BILL HEMMER, CNN ANCHOR: Good morning, everybody. 7:00 here in New York. If you are just waking up, good to have you along with us today.

Good morning to you as well.

O'BRIEN: Good morning.

HEMMER: A good day to be inside, don't you think?

O'BRIEN: Yes, it is.

HEMMER: For millions of you traveling today, it could get ugly. We're watching a serious winter storm develop in the Midwest. Chad has the complete forecast in a moment, but we'll also talk to a spokesperson today for AAA about how many parts of the country will be effected by this mess. It's a big, big, big storm. It's going to be here today and tomorrow, so we'll get to that.

O'BRIEN: The short answer is many parts of the country will be affected by this big mess.

Also this morning, a possible $9 billion accounting scandal getting red hot at the nation's largest mortgage financing company. Andy's taking a look at this. He's going to tell us why heads are now rolling at Fannie Mae.

HEMMER: Also, Jack Cafferty, good morning to you.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The animals who pulled that stunt in Mosul, in Iraq yesterday, are trying to desperately head off these elections in January so they can set up a Taliban-style dictatorship in Iraq, something the citizens of that country are looking forward to -- I think not. We're going to look at whether the escalating violence has a chance of derailing elections, or not.

O'BRIEN: All right, Jack, thanks. Let's get right to stories now in the news. Carol Costello is at the Time Warner Center.

Hey, Carol. Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning to you, Soledad.

Now in the news, British Prime Minister Tony Blair is pushing an upcoming Middle East conference as a way to bolster new Palestinian leadership. Blair is visiting the region in an attempt to help move the stalled Mideast peace process forward. Earlier he met with Israel Prime Minister Ariel Sharon. Blair is also meeting with Palestinian officials later today.

Here in the United States, a fiery tanker crash causing some delays for commuters in the Washington, D.C. area this morning, and that is an understatement. Authorities say a tanker truck believed to be hauling gasoline rolled over and burst into flames some three hours ago. The crash scene in Arlington Virginia, right near the Pentagon, within walking distance as a matter of fact. At least one person was killed in the wreck.

In Washington State, Republicans saying the governor's race there is still too close to call. Right now Republican state Senator Dino Rossi is holding on to an extremely slim lead over the Democratic attorney general, Christine Gregoire. The Washington Supreme Court is expected to hear arguments today over some disputed ballots.

And election officials in King County, which includes Seattle, will announce unofficial results from their hand count today. Of course we'll keep you posted on any developments.

And the new year will turn into a homecoming party for one happy couple. A premature baby, believed to be the smallest baby ever to survive, is expected to be released from the hospital in a few weeks. The baby, seen here with her twin, weighing in at just 8.6 ounces at birth. That weighs less than a can of soda, that little girl. She now weighs 2 pounds, 10 ounces. The baby's mom calls her a great blessing, and is looking forward to bringing both babies home. So cute.

Back to you guys.

SOLEDAD O'BRIEN, CNN ANCHOR: Wow, the twin sister who weighs, what, five pounds looks like a giant compared to her little sister.

COSTELLO: I know, it's amazing. How much did your twins weigh?

O'BRIEN: Over seven pounds a piece. That was 15 pounds of baby I got rid of like that, missy.

Thanks, Carol. Appreciate it.

Well, much of the country this morning is preparing for a winter wallop and a very white Christmas. Here's some of the latest on that. A major snowstorm and ice band is bearing down on the Midwest, up to a foot of snow or more possible in some areas. And significant ice storms are expected in Kentucky and in Ohio. (WEATHER REPORT)

HEMMER: Want to get back to the fallout now from the story that broke on our watch yesterday in Iraq. An investigation now under way into that deadly attack on a U.S. dining hall, at a military base in Mosul. First reports said it was a rocket. Now the FBI is looking into the possibility of a mortar attack, or even a planted bomb inside. That theory developing after tiny holes were found in steel kitchen equipment, suggesting shrapnel. At this point, nothing is being ruled out. At now we know at least 22 are dead, 72 others are injured.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is really a sea of wounded and dead. There are people crying, there are folks that were numb, that collapsed in grief. It really was unreal.

HEMMER: The explosion hit at lunchtime. Witnesses describe a fireball, smoke, a spray of shrapnel. Whether a random shot or a calculated attack, it was deadly.

BRIG. GEN. CARTER HAM, U.S. ARMY: The killed include U.S. military personnel, U.S. contractors, foreign national contractors and Iraqi army. The wounded also come from those various groups.

HEMMER: Pictures from an embedded news photographer shows soldiers caring for wounded comrades. One end of the compound appears to be blown out.

CNN personnel who have visited the base in the past say soldiers had specifically raised safety concerns because the canvas does not offer protection. The immediate concern now is the casualties.

HAMM: Our hearts go out to the families, the friends, fellow soldiers who lost comrades in arms today, who lost husbands, fathers, brothers, both American and Iraqi. It is, indeed, a very, very sad day.

(END VIDEOTAPE)

HEMMER: Many troops in the dining hall yesterday were from the main National Guard. Two of them were killed. Ten others injured. National Guard Chaplain Andrew Gibson talked with the families of one of those action. He is my guest now in Augusta, Maine.

And good morning to you. You have an extremely difficult job. Tell us how the family is holding up that you visited.

CHAPLAIN ANDREW GIBSON, MAINE NATIONAL GUARD: Well, different families will react different ways. Some will be extremely emotional. Some will be able to handle it in a more calm manner. This family was -- had a lot of people who got together and they helped each other. They brought in a lot of family who were not living in the same place. It was a lot of mutual support for them.

HEMMER: What can you say to them?

GIBSON: Well, at that time words can't fix what has happened, and so, what you -- a lot of times it's just silence, allowing them to grieve, maybe holding a hand, offering the help in the future, giving them some sense of hope that they will get through this with the help of -- with the help of God and with the help of their loved ones.

HEMMER: Is there anything that can truly prepare them for a moment like this in their life?

GIBSON: I don't think so. One can think about it, one can ponder it, one can fear it, but when that moment actually comes, and when you actually see the uniformed men come to the front step, I don't think anyone can really prepare for that.

HEMMER: Where do you find they get their strength?

GIBSON: Again, it depends on the individual. Very often it comes from their family members, from their friends. Very often it comes from God. We've -- it's not uncommon for us to have a prayer right while -- right after we have done notification. So different people look to different sources for their strength.

HEMMER: Will you visit with another family today?

GIBSON: We actually have not completed the notifications at this point. There was one family member who was away, and we are going to go speaking with that person a little bit later this morning.

HEMMER: In a broader sense, with two dead in that community, and ten others wounded, how is the community reacting as of yesterday afternoon?

GIBSON: Well, obviously, the not knowing throughout the day. We did not actually get the names until later in the afternoon. And so as you can imagine, as the name of the unit came out, people were calling and wanting to know if it was their soldier. And so the fear, replaced by some sort of sense of relief that it wasn't their soldier, and then maybe a sense of guilt for being thankful that it wasn't their soldier. So there's a whole gamut of emotions.

HEMMER: There's more of that again that continues today, is that right, as they wait?

GIBSON: As they wait to hear about the soldiers who were injured, sure, and a lot of other emotions, sympathy for the families, trying to figure out who the families are, because we're not at liberty to release the names either. So they know if they have not been killed, their soldier is OK, but they still have compassion and caring for the others.

HEMMER: On top of all that, the holidays are right around the corner. You have an extremely difficult job. My best to you. Good luck to you. Chaplain Andrew Gibson, Augusta, Maine, with the Maine National Guard.

Thanks for sharing with us this morning.

GIBSON: Thanks, Bill.

O'BRIEN: Well, singers, and actors and writers all left a mark on pop culture in 2004, but what about a Mormon software engineer from Utah? We'll explain.

Also solving that massive arson case in the state of Maryland. Was racism a factor there? Back after this.

(COMMERCIAL BREAK)

O'BRIEN: At about 14 minutes now past the hour.

From the state of Maryland today, six people are in custody, this in connection with the worst case of arson in that state's history. Authorities say as many as 18 people may be involved in the crime. It may have been gang-related.

Kelli Arena is tracking it now from Maryland today.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): According to court documents, talk of setting the fires first took place at this Denny's Restaurant last summer, a frequent hangout for a group of men who called themselves the Unseen Cavaliers. There was allegedly a conversation about recruiting new members and making the local gang more famous by setting something on fire.

A friend of some of the suspects spoke on camera but did not want his face shown.

UNIDENTIFIED MALE: It was like, you know, set stuff on fire in the country, set off fireworks, just stuff like that, but I wouldn't put it past them at all.

ARENA: Officials say they still have not nailed down an official motive. In court prosecutors suggested race may have been a factor, the homebuyers were mostly black, the accused all white.

SHERIFF FRED DAVIS, CHARLES COUNTY, MARYLAND: There's no motive yet that we can establish and it could be a multitude, a multitude of motives. That remains to be seen.

ARENA: Aaron Speed was the first arrested. He was a security guard at the housing development. Prosecutors say Speed told investigators he didn't like the way he was treated by his bosses after his infant son died. And Jeremy Periti (ph) who according to court papers helped hatch the scheme was rejected when he applied for a job with the property developer, making the case for the oldest of motives, revenge.

Even if they don't know why the men allegedly set the fires, residents are satisfied with how quickly things have progressed.

CLAYTON THOMPSON, NEIGHBOR: I thought they won't have a problem catching them, but I didn't think it would be this soon.

ARENA: Law enforcement sources say they believe the major organizers are in custody. They say one other man who allegedly knew of the plan is being held on an immigration violation. Investigators plan to interview at least a dozen more individuals and say additional charges could be brought.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

HEMMER: One other note on this story, the six suspects face up to 20 years behind bars if convicted in that -- Soledad.

O'BRIEN: A major shakeup at a mortgage giant, plus the Dow closing at a 3.5-year high. Andy Serwer is "Minding Your Business" this morning. Ho, ho, ho, a little gift from Santa this morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, nothing wrong with that. Good morning, Soledad.

Stocks surged yesterday on wall street. Optimism abounds down there, at least for the time being. And that's right, the Dow was up almost 100 points yesterday, a couple positive reports from big brokerages, Bear Stearns and Morgan Stanley. Even those beat-up drug stocks rallied a bit. Merck and Pfizer bounced back, 3 1/2/ year high, as Soledad said, 1,000 points now below the all-time high of 11,722, reached in January of 2000. So the Santa Claus rally is taking effect. And you can see here, here is the Dow for the year, and we're really had quite a nice rally at the end of the year.

Speaking of this big shakeup down in Washington D.C., you were mentioning, Soledad, that has happened at Fannie Mae, the mortgage giant, and the second largest financial institution in the United States after Citigroup. Basically two top executives have stepped down. Some say they were forced out. The CEO Franklin Raines, a very high-profile CEO and a very incredible success story, also CFO Tim Howard have left the company. A $9 billion earnings scandal there, basically aggressive accounting again. We've seen this time and time again at big companies. And the problems probably won't have much effect on the mortgage market, though. So for people there who are thinking about mortgages, or getting one or refinancing, this is not going to have any immediate impact, but they are a giant, giant player in the business, and look for possibly some new legislation coming from Congress to take effect.

O'BRIEN: Yes, it will be interesting to see what the long-term impact is on this decision.

SERWER: That's right, and then there's a lot of complaining about more private companies, because it's a quasi-public company; it's part government agency and part private company, and a lot of private companies on wall street don't like the fact that they have an advantage in that market, kind of complicated stuff, but basically a key player in the mortgage market.

O'BRIEN: Andy, thanks.

SERWER: You're welcome.

O'BRIEN: You mentioned ho-hos, more ho-hos today. Merry Christmas or happy holidays? There may be an even bigger factor than religion and what you say for seasons greetings? We'll get to that after this.

(COMMERCIAL BREAK)

HEMMER: In the spirit of the holidays, what do you say when you meet someone this time of year? Is it merry Christmas or is it happy holidays? And what you say may say something about you apparently. A simple holiday greeting can be a politically loaded statement. There's a Gallup poll out: 56 percent of Americans prefer merry Christmas, 41 percent go with happy holidays. And when divided among political parties, more Republicans, they say, are likely to say merry Christmas, and Democrats stick to the neutrally -- well, the happy holidays greeting, which is religiously neutral.

O'BRIEN: What do you say?

HEMMER: I say happy holidays most of the time, unless I know your religious persuasion, then I'll say merry Christmas.

O'BRIEN: I think I say merry Christmas on Christmas Day, but happy holidays when we're in, like, holidays (INAUDIBLE). I'm not even going to ask you.

CAFFERTY: You know what I say, I say we did this yesterday.

O'BRIEN: Oh, I'm sorry, I was out yesterday, Jack, so I'm catching up.

CAFFERTY: Yesterday's rocket attack in Mosul was a sign of the growing desperation of the insurgency in that country. Elections scheduled for January 30th, their time is running out now. Their campaign of fear has been successful -- we have Iraqi troops who run away from battle, American public opinion polls show declining support for the war effort. The insurgents want a Taliban-like dictatorship to rule Iraq, but if those elections happen, if the Iraqis show up at 9,000 polling places in five weeks and cast their votes, it could be marking the beginning of the end for the insurgents, and they know it. The stakes couldn't be any higher.

Here's the question, how will the escalating violence in Iraq affect the elections? AM@cnn.com.

That was that whole Question of the Day yesterday about are we losing Christmas to political correctness. You were here yesterday, weren't you?

O'BRIEN: I was just curious, just asking, just throwing it out there as a question.

HEMMER: Take the 'X' out, put the Christ back in. CAFFERTY: Maybe we can do it again Monday.

HEMMER: Perhaps.

O'BRIEN: OK, I'm sorry. Can we move on?

HEMMER: Good to have you back, Soledad.

O'BRIEN: Thank you, Bill. I appreciate that.

HEMMER: Want to get back to the story in Iraq right now, this investigation into the deadly attacks against a U.S. military base there. Lieutenant General Thomas Metz now live from Mosul, my guest now, to talk about more on this, and I don't know what you can offer at this point, but have with regard to the latest on the investigation, general?

LT. GEN. THOMAS METZ, CMDR., MULTINATIONAL CORPS IN IRAQ: We have -- last night after the incident, where we loaded not only additional doctors and medical personnel, but we loaded our experts to go up to Mosul, to do a thorough investigation and get all the details possible so we can make some final determinations and learn from this tragic attack that the enemy has brought on us.

HEMMER: General, you're well aware, though, there's a theory out there that suggests a bomb may have been planted inside the mess hall. Is that a possibility?

METZ: Well, it's certainly a possibility. That's the reason we have our experts up there. They will be able to figure out exactly what caliber munition and type of indirect fire. If it was indirect, if it was a bomb, they will be able to figure out the size and the kinds of materials that were put into it. But our experts are there right now doing that investigation.

HEMMER: If it were a rocket, though, there is a sound from the incoming munition. Do eyewitnesses describe that sound, general?

METZ: I have not -- I'm here in Baghdad. I have not talked with eyewitnesses, and I'm not aware of them hearing or not hearing missiles coming in. But the ones that I have heard, you're right, there's a distinct noise to an incoming missile.

HEMMER: Soldiers were inside this tent, a dining hall, very soft-skinned canvas-type of covering. Is there a better option for keeping soldiers at a military base now anywhere in Iraq safer than a canvas protection would provide?

METZ: Well, there certainly is. And we have been looking at force protection parameters not only for dining facilities, but for other places where you have large gatherings. We have morale and welfare centers, gymnasiums. All those are places we want to add protection. In fact, we are in the process of constructing a hardened dining facility a couple blocks away from this one. It is scheduled to be done in February. HEMMER: General, if you can hear me, I know there is overhead aircraft there. Can you determine whether or not this must have been an inside job, some sort of insider information that would allow the insurgents to know that at noontime at this base in northern Mosul, the majority of the U.S. soldiers are gathering at that point. Can you confirm that?

METZ: Well, certainly I think it's common knowledge that coalition soldiers gather at lunch time. But I think from the previous attacks on that particular forward-operating base, they were rather random. The enemy cannot stay in one place long to attack us. Therefore, his accuracy is pretty poor. An inside job, I wouldn't take it that far to say we necessarily have someone on the inside directing the fire. But he's got a good idea of where our forward- operating bases are, and may at this stage have an idea of where particular facilities on the base are.

HEMMER: General, one more thought here, and I want to give our viewers a little more insight, and possibly military families watching this here in the U.S. as well. What kind of security measures are in place that would prevent, from this point forward, anyone planting a bomb inside a mess hall anywhere in the country of Iraq?

METZ: Well, force protection is part of our combat power. We are constantly evaluating force protection. We have a great tactics, techniques, and procedures for people coming and going off of these forward-operating bases. We have internal security that's checking people, places that are -- the enemy shouldn't be or were classified. We look at people even closer. We're putting barriers up that degrade incoming rounds.

There's constantly an evaluation of force protection that goes on to protect our soldiers.

And if I could, I would like to end with the heart-felt condolences, because those notifications are taking place now to those families and friends of our lost comrades. All of us feel for them. It was a tough day yesterday. But we're committed to ensure their loss is not in vain. We're not intimidated by these thugs. And I would tell you today the feeling is resolve; we're going to get the job done.

HEMMER: Thank you, general, for your time. And stay safe over there. My best of luck to you and the investigation, an going forward, too, with your mission there in Iraq, Lieutenant General Thomas Metz there.

We do not know the answer yet as to what happened in that dining hall. It may have been a rocket. It could have been a mortar. And again, the theory out there today is that an inside job may have planted a bomb inside that mess hall.

More when we get it throughout the morning here, Soledad.

Just ahead this morning, will dreams of a white Christmas turn into a travel nightmare? Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired December 22, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: What happened in that deadly attack in Mosul? tiny holes found in kitchen equipment leading investigators to a new theory of a planted bomb.
And The ice storm. Snow, and sleet and freezing rain coming down now, and it will go on for hours, a big winter storm with potential for holiday havoc on this AMERICAN MORNING.

BILL HEMMER, CNN ANCHOR: Good morning, everybody. 7:00 here in New York. If you are just waking up, good to have you along with us today.

Good morning to you as well.

O'BRIEN: Good morning.

HEMMER: A good day to be inside, don't you think?

O'BRIEN: Yes, it is.

HEMMER: For millions of you traveling today, it could get ugly. We're watching a serious winter storm develop in the Midwest. Chad has the complete forecast in a moment, but we'll also talk to a spokesperson today for AAA about how many parts of the country will be effected by this mess. It's a big, big, big storm. It's going to be here today and tomorrow, so we'll get to that.

O'BRIEN: The short answer is many parts of the country will be affected by this big mess.

Also this morning, a possible $9 billion accounting scandal getting red hot at the nation's largest mortgage financing company. Andy's taking a look at this. He's going to tell us why heads are now rolling at Fannie Mae.

HEMMER: Also, Jack Cafferty, good morning to you.

JACK CAFFERTY, CNN ANCHOR: Good morning.

The animals who pulled that stunt in Mosul, in Iraq yesterday, are trying to desperately head off these elections in January so they can set up a Taliban-style dictatorship in Iraq, something the citizens of that country are looking forward to -- I think not. We're going to look at whether the escalating violence has a chance of derailing elections, or not.

O'BRIEN: All right, Jack, thanks. Let's get right to stories now in the news. Carol Costello is at the Time Warner Center.

Hey, Carol. Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning to you, Soledad.

Now in the news, British Prime Minister Tony Blair is pushing an upcoming Middle East conference as a way to bolster new Palestinian leadership. Blair is visiting the region in an attempt to help move the stalled Mideast peace process forward. Earlier he met with Israel Prime Minister Ariel Sharon. Blair is also meeting with Palestinian officials later today.

Here in the United States, a fiery tanker crash causing some delays for commuters in the Washington, D.C. area this morning, and that is an understatement. Authorities say a tanker truck believed to be hauling gasoline rolled over and burst into flames some three hours ago. The crash scene in Arlington Virginia, right near the Pentagon, within walking distance as a matter of fact. At least one person was killed in the wreck.

In Washington State, Republicans saying the governor's race there is still too close to call. Right now Republican state Senator Dino Rossi is holding on to an extremely slim lead over the Democratic attorney general, Christine Gregoire. The Washington Supreme Court is expected to hear arguments today over some disputed ballots.

And election officials in King County, which includes Seattle, will announce unofficial results from their hand count today. Of course we'll keep you posted on any developments.

And the new year will turn into a homecoming party for one happy couple. A premature baby, believed to be the smallest baby ever to survive, is expected to be released from the hospital in a few weeks. The baby, seen here with her twin, weighing in at just 8.6 ounces at birth. That weighs less than a can of soda, that little girl. She now weighs 2 pounds, 10 ounces. The baby's mom calls her a great blessing, and is looking forward to bringing both babies home. So cute.

Back to you guys.

SOLEDAD O'BRIEN, CNN ANCHOR: Wow, the twin sister who weighs, what, five pounds looks like a giant compared to her little sister.

COSTELLO: I know, it's amazing. How much did your twins weigh?

O'BRIEN: Over seven pounds a piece. That was 15 pounds of baby I got rid of like that, missy.

Thanks, Carol. Appreciate it.

Well, much of the country this morning is preparing for a winter wallop and a very white Christmas. Here's some of the latest on that. A major snowstorm and ice band is bearing down on the Midwest, up to a foot of snow or more possible in some areas. And significant ice storms are expected in Kentucky and in Ohio. (WEATHER REPORT)

HEMMER: Want to get back to the fallout now from the story that broke on our watch yesterday in Iraq. An investigation now under way into that deadly attack on a U.S. dining hall, at a military base in Mosul. First reports said it was a rocket. Now the FBI is looking into the possibility of a mortar attack, or even a planted bomb inside. That theory developing after tiny holes were found in steel kitchen equipment, suggesting shrapnel. At this point, nothing is being ruled out. At now we know at least 22 are dead, 72 others are injured.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is really a sea of wounded and dead. There are people crying, there are folks that were numb, that collapsed in grief. It really was unreal.

HEMMER: The explosion hit at lunchtime. Witnesses describe a fireball, smoke, a spray of shrapnel. Whether a random shot or a calculated attack, it was deadly.

BRIG. GEN. CARTER HAM, U.S. ARMY: The killed include U.S. military personnel, U.S. contractors, foreign national contractors and Iraqi army. The wounded also come from those various groups.

HEMMER: Pictures from an embedded news photographer shows soldiers caring for wounded comrades. One end of the compound appears to be blown out.

CNN personnel who have visited the base in the past say soldiers had specifically raised safety concerns because the canvas does not offer protection. The immediate concern now is the casualties.

HAMM: Our hearts go out to the families, the friends, fellow soldiers who lost comrades in arms today, who lost husbands, fathers, brothers, both American and Iraqi. It is, indeed, a very, very sad day.

(END VIDEOTAPE)

HEMMER: Many troops in the dining hall yesterday were from the main National Guard. Two of them were killed. Ten others injured. National Guard Chaplain Andrew Gibson talked with the families of one of those action. He is my guest now in Augusta, Maine.

And good morning to you. You have an extremely difficult job. Tell us how the family is holding up that you visited.

CHAPLAIN ANDREW GIBSON, MAINE NATIONAL GUARD: Well, different families will react different ways. Some will be extremely emotional. Some will be able to handle it in a more calm manner. This family was -- had a lot of people who got together and they helped each other. They brought in a lot of family who were not living in the same place. It was a lot of mutual support for them.

HEMMER: What can you say to them?

GIBSON: Well, at that time words can't fix what has happened, and so, what you -- a lot of times it's just silence, allowing them to grieve, maybe holding a hand, offering the help in the future, giving them some sense of hope that they will get through this with the help of -- with the help of God and with the help of their loved ones.

HEMMER: Is there anything that can truly prepare them for a moment like this in their life?

GIBSON: I don't think so. One can think about it, one can ponder it, one can fear it, but when that moment actually comes, and when you actually see the uniformed men come to the front step, I don't think anyone can really prepare for that.

HEMMER: Where do you find they get their strength?

GIBSON: Again, it depends on the individual. Very often it comes from their family members, from their friends. Very often it comes from God. We've -- it's not uncommon for us to have a prayer right while -- right after we have done notification. So different people look to different sources for their strength.

HEMMER: Will you visit with another family today?

GIBSON: We actually have not completed the notifications at this point. There was one family member who was away, and we are going to go speaking with that person a little bit later this morning.

HEMMER: In a broader sense, with two dead in that community, and ten others wounded, how is the community reacting as of yesterday afternoon?

GIBSON: Well, obviously, the not knowing throughout the day. We did not actually get the names until later in the afternoon. And so as you can imagine, as the name of the unit came out, people were calling and wanting to know if it was their soldier. And so the fear, replaced by some sort of sense of relief that it wasn't their soldier, and then maybe a sense of guilt for being thankful that it wasn't their soldier. So there's a whole gamut of emotions.

HEMMER: There's more of that again that continues today, is that right, as they wait?

GIBSON: As they wait to hear about the soldiers who were injured, sure, and a lot of other emotions, sympathy for the families, trying to figure out who the families are, because we're not at liberty to release the names either. So they know if they have not been killed, their soldier is OK, but they still have compassion and caring for the others.

HEMMER: On top of all that, the holidays are right around the corner. You have an extremely difficult job. My best to you. Good luck to you. Chaplain Andrew Gibson, Augusta, Maine, with the Maine National Guard.

Thanks for sharing with us this morning.

GIBSON: Thanks, Bill.

O'BRIEN: Well, singers, and actors and writers all left a mark on pop culture in 2004, but what about a Mormon software engineer from Utah? We'll explain.

Also solving that massive arson case in the state of Maryland. Was racism a factor there? Back after this.

(COMMERCIAL BREAK)

O'BRIEN: At about 14 minutes now past the hour.

From the state of Maryland today, six people are in custody, this in connection with the worst case of arson in that state's history. Authorities say as many as 18 people may be involved in the crime. It may have been gang-related.

Kelli Arena is tracking it now from Maryland today.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): According to court documents, talk of setting the fires first took place at this Denny's Restaurant last summer, a frequent hangout for a group of men who called themselves the Unseen Cavaliers. There was allegedly a conversation about recruiting new members and making the local gang more famous by setting something on fire.

A friend of some of the suspects spoke on camera but did not want his face shown.

UNIDENTIFIED MALE: It was like, you know, set stuff on fire in the country, set off fireworks, just stuff like that, but I wouldn't put it past them at all.

ARENA: Officials say they still have not nailed down an official motive. In court prosecutors suggested race may have been a factor, the homebuyers were mostly black, the accused all white.

SHERIFF FRED DAVIS, CHARLES COUNTY, MARYLAND: There's no motive yet that we can establish and it could be a multitude, a multitude of motives. That remains to be seen.

ARENA: Aaron Speed was the first arrested. He was a security guard at the housing development. Prosecutors say Speed told investigators he didn't like the way he was treated by his bosses after his infant son died. And Jeremy Periti (ph) who according to court papers helped hatch the scheme was rejected when he applied for a job with the property developer, making the case for the oldest of motives, revenge.

Even if they don't know why the men allegedly set the fires, residents are satisfied with how quickly things have progressed.

CLAYTON THOMPSON, NEIGHBOR: I thought they won't have a problem catching them, but I didn't think it would be this soon.

ARENA: Law enforcement sources say they believe the major organizers are in custody. They say one other man who allegedly knew of the plan is being held on an immigration violation. Investigators plan to interview at least a dozen more individuals and say additional charges could be brought.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

HEMMER: One other note on this story, the six suspects face up to 20 years behind bars if convicted in that -- Soledad.

O'BRIEN: A major shakeup at a mortgage giant, plus the Dow closing at a 3.5-year high. Andy Serwer is "Minding Your Business" this morning. Ho, ho, ho, a little gift from Santa this morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Yes, nothing wrong with that. Good morning, Soledad.

Stocks surged yesterday on wall street. Optimism abounds down there, at least for the time being. And that's right, the Dow was up almost 100 points yesterday, a couple positive reports from big brokerages, Bear Stearns and Morgan Stanley. Even those beat-up drug stocks rallied a bit. Merck and Pfizer bounced back, 3 1/2/ year high, as Soledad said, 1,000 points now below the all-time high of 11,722, reached in January of 2000. So the Santa Claus rally is taking effect. And you can see here, here is the Dow for the year, and we're really had quite a nice rally at the end of the year.

Speaking of this big shakeup down in Washington D.C., you were mentioning, Soledad, that has happened at Fannie Mae, the mortgage giant, and the second largest financial institution in the United States after Citigroup. Basically two top executives have stepped down. Some say they were forced out. The CEO Franklin Raines, a very high-profile CEO and a very incredible success story, also CFO Tim Howard have left the company. A $9 billion earnings scandal there, basically aggressive accounting again. We've seen this time and time again at big companies. And the problems probably won't have much effect on the mortgage market, though. So for people there who are thinking about mortgages, or getting one or refinancing, this is not going to have any immediate impact, but they are a giant, giant player in the business, and look for possibly some new legislation coming from Congress to take effect.

O'BRIEN: Yes, it will be interesting to see what the long-term impact is on this decision.

SERWER: That's right, and then there's a lot of complaining about more private companies, because it's a quasi-public company; it's part government agency and part private company, and a lot of private companies on wall street don't like the fact that they have an advantage in that market, kind of complicated stuff, but basically a key player in the mortgage market.

O'BRIEN: Andy, thanks.

SERWER: You're welcome.

O'BRIEN: You mentioned ho-hos, more ho-hos today. Merry Christmas or happy holidays? There may be an even bigger factor than religion and what you say for seasons greetings? We'll get to that after this.

(COMMERCIAL BREAK)

HEMMER: In the spirit of the holidays, what do you say when you meet someone this time of year? Is it merry Christmas or is it happy holidays? And what you say may say something about you apparently. A simple holiday greeting can be a politically loaded statement. There's a Gallup poll out: 56 percent of Americans prefer merry Christmas, 41 percent go with happy holidays. And when divided among political parties, more Republicans, they say, are likely to say merry Christmas, and Democrats stick to the neutrally -- well, the happy holidays greeting, which is religiously neutral.

O'BRIEN: What do you say?

HEMMER: I say happy holidays most of the time, unless I know your religious persuasion, then I'll say merry Christmas.

O'BRIEN: I think I say merry Christmas on Christmas Day, but happy holidays when we're in, like, holidays (INAUDIBLE). I'm not even going to ask you.

CAFFERTY: You know what I say, I say we did this yesterday.

O'BRIEN: Oh, I'm sorry, I was out yesterday, Jack, so I'm catching up.

CAFFERTY: Yesterday's rocket attack in Mosul was a sign of the growing desperation of the insurgency in that country. Elections scheduled for January 30th, their time is running out now. Their campaign of fear has been successful -- we have Iraqi troops who run away from battle, American public opinion polls show declining support for the war effort. The insurgents want a Taliban-like dictatorship to rule Iraq, but if those elections happen, if the Iraqis show up at 9,000 polling places in five weeks and cast their votes, it could be marking the beginning of the end for the insurgents, and they know it. The stakes couldn't be any higher.

Here's the question, how will the escalating violence in Iraq affect the elections? AM@cnn.com.

That was that whole Question of the Day yesterday about are we losing Christmas to political correctness. You were here yesterday, weren't you?

O'BRIEN: I was just curious, just asking, just throwing it out there as a question.

HEMMER: Take the 'X' out, put the Christ back in. CAFFERTY: Maybe we can do it again Monday.

HEMMER: Perhaps.

O'BRIEN: OK, I'm sorry. Can we move on?

HEMMER: Good to have you back, Soledad.

O'BRIEN: Thank you, Bill. I appreciate that.

HEMMER: Want to get back to the story in Iraq right now, this investigation into the deadly attacks against a U.S. military base there. Lieutenant General Thomas Metz now live from Mosul, my guest now, to talk about more on this, and I don't know what you can offer at this point, but have with regard to the latest on the investigation, general?

LT. GEN. THOMAS METZ, CMDR., MULTINATIONAL CORPS IN IRAQ: We have -- last night after the incident, where we loaded not only additional doctors and medical personnel, but we loaded our experts to go up to Mosul, to do a thorough investigation and get all the details possible so we can make some final determinations and learn from this tragic attack that the enemy has brought on us.

HEMMER: General, you're well aware, though, there's a theory out there that suggests a bomb may have been planted inside the mess hall. Is that a possibility?

METZ: Well, it's certainly a possibility. That's the reason we have our experts up there. They will be able to figure out exactly what caliber munition and type of indirect fire. If it was indirect, if it was a bomb, they will be able to figure out the size and the kinds of materials that were put into it. But our experts are there right now doing that investigation.

HEMMER: If it were a rocket, though, there is a sound from the incoming munition. Do eyewitnesses describe that sound, general?

METZ: I have not -- I'm here in Baghdad. I have not talked with eyewitnesses, and I'm not aware of them hearing or not hearing missiles coming in. But the ones that I have heard, you're right, there's a distinct noise to an incoming missile.

HEMMER: Soldiers were inside this tent, a dining hall, very soft-skinned canvas-type of covering. Is there a better option for keeping soldiers at a military base now anywhere in Iraq safer than a canvas protection would provide?

METZ: Well, there certainly is. And we have been looking at force protection parameters not only for dining facilities, but for other places where you have large gatherings. We have morale and welfare centers, gymnasiums. All those are places we want to add protection. In fact, we are in the process of constructing a hardened dining facility a couple blocks away from this one. It is scheduled to be done in February. HEMMER: General, if you can hear me, I know there is overhead aircraft there. Can you determine whether or not this must have been an inside job, some sort of insider information that would allow the insurgents to know that at noontime at this base in northern Mosul, the majority of the U.S. soldiers are gathering at that point. Can you confirm that?

METZ: Well, certainly I think it's common knowledge that coalition soldiers gather at lunch time. But I think from the previous attacks on that particular forward-operating base, they were rather random. The enemy cannot stay in one place long to attack us. Therefore, his accuracy is pretty poor. An inside job, I wouldn't take it that far to say we necessarily have someone on the inside directing the fire. But he's got a good idea of where our forward- operating bases are, and may at this stage have an idea of where particular facilities on the base are.

HEMMER: General, one more thought here, and I want to give our viewers a little more insight, and possibly military families watching this here in the U.S. as well. What kind of security measures are in place that would prevent, from this point forward, anyone planting a bomb inside a mess hall anywhere in the country of Iraq?

METZ: Well, force protection is part of our combat power. We are constantly evaluating force protection. We have a great tactics, techniques, and procedures for people coming and going off of these forward-operating bases. We have internal security that's checking people, places that are -- the enemy shouldn't be or were classified. We look at people even closer. We're putting barriers up that degrade incoming rounds.

There's constantly an evaluation of force protection that goes on to protect our soldiers.

And if I could, I would like to end with the heart-felt condolences, because those notifications are taking place now to those families and friends of our lost comrades. All of us feel for them. It was a tough day yesterday. But we're committed to ensure their loss is not in vain. We're not intimidated by these thugs. And I would tell you today the feeling is resolve; we're going to get the job done.

HEMMER: Thank you, general, for your time. And stay safe over there. My best of luck to you and the investigation, an going forward, too, with your mission there in Iraq, Lieutenant General Thomas Metz there.

We do not know the answer yet as to what happened in that dining hall. It may have been a rocket. It could have been a mortar. And again, the theory out there today is that an inside job may have planted a bomb inside that mess hall.

More when we get it throughout the morning here, Soledad.

Just ahead this morning, will dreams of a white Christmas turn into a travel nightmare? Stay with us. You're watching AMERICAN MORNING.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com