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President's Second Term Begins Today; '90-Second Pop'

Aired January 21, 2005 - 09:30   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.


BILL HEMMER, CNN ANCHOR, AMERICAN MORNING: There's your opening bell on Wall Street on a Friday morning, kicking things off down there; 10,471, off 68 points in trading from yesterday.
A lot of that coming on some pretty tough news from Delta Air Lines and the losses they incurred in the last quarter of 2004. Nasdaq MarketSite, 2,045, off 27 points in trading yesterday. So we'll see which way we go today.

Good morning, everybody. It's 9:30 here in New York. Good to have you along with us today.

The Eastern half of the U.S. about to get socked by another big winter storm. Snow and ice already making roads dangerous in the Mid- Atlantic states, especially in North Carolina, tough going there.

As much as a foot or more could hit in parts. Chad has the forecast as best as he can tell, 36 hours out. Back with Chad on that.

SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Also this morning our series "What's In It For Me?" continues. Today Kelly Wallace looks at proposed changes in immigration laws. Eight million people could get documents to work legally, but there are powerful forces at work against them. We'll take a look at both sides of that issue, just ahead.

Heidi Collins back with us also, with the headlines.

Good morning.

HEIDI COLLINS, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning, once again, guys. Good morning to you, everybody.

"Now in the News" this morning: U.S. troops are beginning to trickle out of some tsunami-hit areas. About 15,000 American troops expected to pull out from Southern Asia within 60 days. Indonesia has said it wants international soldiers to leave the Aceh Province by the end of March. Some aid groups say U.S. forces are playing a key role in the effort.

The confirmation of secretary of State nominee Condoleezza Rice is on hold until next week. The Senate has set nine hours aside on Tuesday for additional debate. A full Senate vote is expected on Wednesday.

Northern Texas, now, the search underway this morning for a 19- year-old Wal-Mart cashiers whose apparent abduction was caught on tape. Surveillance video from a Wal-Mart parking lot shows the young woman chased down and pushed into her vehicle. Megan Leeann Holden was last seen leaving work on Wednesday night. A $10,000 reward has been posted for anyone with information in the case.

Police in Philadelphia are looking into a complaint against comedian Bill Cosby. The woman described as an acquaintance of the entertainer claims he touched her inappropriately one year ago. Cosby's attorney says no criminal complaint has been filed and called the allegation, quote, "utterly preposterous and plainly bizarre". Cosby has canceled some upcoming public appearances citing personal reasons.

Back over to you guys.

HEMMER: All right, Heidi. Thanks.

It is snowing again this morning in parts of North Carolina. Even a little bit of snow and ice can paralyze that state. On Wednesday, an inch of snow came down in Raleigh-Durham. Roads became ice rinks instantly. Traffic was gridlocked. Forget about kids being allowed to stay home from school, instead the snow forced nearly 3,000 students to sleep over at their schools.

I bet they loved that -- not. Here's Chad Myers watching the forecast. Give us the timeline, Chad. What do you expect at this point?

(WEATHER FORECAST)

O'BRIEN: Today, the president's second term begins in earnest. We continue our series "What's In It For Me?" This morning we're focusing on immigration. Kelly Wallace is with us with more.

Good morning.

KELLY WALLACE, CNN CORRESPONDENT, AMERICAN MORNING: Good morning, Soledad.

What we tried to do here, focus on one person, one family, to find out what they expect President Bush to do over the next four years. Today we focus on a man who came to the U.S. Illegally, but now is a legal resident working with immigrants. And we asked what's in it for him when it comes to the president's second term agenda.

In Hampstead, Long island, Carlos Canales is always on the move. The community organizer spends his days trying to help migrant workers like these men who are waiting for construction work; many are here illegally.

CARLOS CANALES, WORKPLACE PROJECT: They are not delinquent. They come here because they want to support their families. They want to make a living. They want to take food to the table.

Canales was once in their shoes. He fled El Salvador's civil war in 1986. Now he's a legal resident in the U.S. working towards citizenship. His hopes for the new Bush administration ... CANALES: Give the immigrant the same opportunity that was given to all of those that came before us, to the United States.

WALLACE: President Bush has promised to try and grant temporary worker status to some of the 8 million undocumented immigrants in the U.S., but Canales says that doesn't go far enough.

CANALES: You come here, as a slave, to work with no other right, but just the right to -- just to work, like an animal.

WALLACE: He knows some Americans instead want a crackdown on illegal immigration. In fact, one of the first measures Congress will take up, one Republican lawmaker's push to ban states from providing driver's licenses to illegal immigrants.

REP. JAMES SENENBRENNER (R) WISCONSIN: American citizens have the right to know who is in their country.

WALLACE: As well as a right to prevent their tax dollars from going to illegal immigrants, says this California radio host.

KEN CHAMPEAU, RADIO HOST: California has a cost of about $5 billion a year for illegal immigration. That's education, health care and all the other services that are used. People are tired of that.

WALLACE: But Canales says any crackdown on immigration won't keep people from coming to the United States illegally.

CANALES: We don't here we want to violate your laws here. We're coming where we need to come. It is a matter of necessity.

WALLACE: He says he's not too hopeful about the future, saying he doubts the president, who promised immigration reform during the campaign, will deliver.

CANALES: I don't see the logic. I mean, in politics, everything is business. He didn't do it before he was in election, why does he have to do it now?

(END VIDEOTAPE)

WALLACE: But the president in a series of interviews before his inauguration says he will push for this, Soledad. But as you know, to get this passed and other priorities, he must even overcome opposition within his own party.

O'BRIEN: So, then if you had to lay a wager, obviously the man you focused on not sounding very optimistic. What do you think?

WALLACE: Well, it just seems that Republican leaders, you had Sensenbrenner there, you had House Majority Leader Tom Delay, others, who feel that the momentum is on their side. That they do not want to see what President Bush is proposing. They think it will reward illegal immigrants coming to the United States. So the momentum they think is on their side. Again, the president, as he's talked about, he doesn't have a lot of time. He has a number of priorities that have a lot of opposition from Republicans. Seems like Social Security reform might be the one that he'll put that political capital on.

O'BRIEN: Wasn't mentioned in the speech last night, was it?

WALLACE: I guess State of the Union?

O'BRIEN: Kelly, thank you very much.

WALLACE: Sure.

O'BRIEN: Bill, back to you.

HEMMER: How does the real CIA stack up with the Hollywood spy games? Former Agent Lindsay Moran is out with a new book called, "Blowing My Cover: My Life As A CIA Spy". Did her life look anything like the TV show "Alias"? She'll tell us Monday on AMERICAN MORNING.

In a moment, one of the country's biggest companies apologizing for its role in a dark chapter of American history. Andy has that. And Donald Trump made some changes for the new season "The Apprentice". Will they fly with viewers? "90 Second Pop" has a shot at that, right after this.

(COMMERCIAL BREAK)

O'BRIEN: A little Prince to start your morning. It is time for "90 Second Pop" for a Friday, with our Pop players, Sarah Bernard contributing editor for "New York" magazine.

Good morning to you.

SARAH BERNARD, EDITOR, "NEW YORK": Good morning.

O'BRIEN: Toure, CNN pop culture correspondent. Good morning.

TOURE, CNN POP CULTURE CORRESPONDENT: How are you?

O'BRIEN: I'm very well. Thank you for asking.

(LAUGHTER)

(UNINTELLIGIBLE) Good morning, Jessica. Nice to see you.

UNIDENTIFIED FEMALE: Good morning.

O'BRIEN: Let's get right to it. Spongebob, is the controversy that Spongebob is gay, that he might be gay, or is it that he supports gay rights?

TOURE: I love, love, love this story. Focus on the Family, a Christian Conservative Group is attacking Spongebob Squarepants because they think he's promoting homosexual values. Like he's holding hands with his little friend. Spongebob Squarepants, people. I love it how Christians often don't act so Christian around homosexuality. Like that's the one thing that, oh, my god!

UNIDENTIFIED FEMALE: Or cartoon characters.

TOURE: Right! It's Spongebob.

(CROSS TALK)

O'BRIEN: But there's an issue, too, with a Web site, right? It is not just that he holds --

TOURE: No, it's a video that Nile Rogers, producer from before, is making because he's part of creating --

O'BRIEN: Which has a lot of these little characters for kids.

TOURE: Teaching tolerance to kids. Not teaching homosexuality, just tolerance.

BERNARD: It has basically every cartoon character that would be for any four-year-old right now, there is Bob the Builder, Sesame Street people.

UNIDENTIFIED FEMALE: Those are my people, by the way.

UNIDENTIFIED FEMALE: Big Bird might be getting it on. So I don't know.

O'BRIEN: Any legs to this thing or no, do you think?

BERNARD: Actually, he is even saying that someone has confused two different sites, right?

Niles Rodgers says, his site promotes tolerance and there's another with a similar name that actually is a gay youth organization. He thinks it might be some kind of confusion.

TOURE: It is ultimately, there is this kind of McCarthyism around homosexuality. We're going to root it out everywhere, every crevice, even if it's not really not there.

O'BRIEN: And if Spongebob is gay, then we're going to find out.

Let's move on to our next topic, shall we? "Apprentice 3", how does it look?

UNIDENTIFIED FEMALE: I don't think it looks that good. I got to say.

TOURE: Let me explain to you why they don't like it and the high school graduate does. Because they're college graduates. And my team won.

UNIDENTIFIED FEMALE: That is the gimmick this year, it is book smarts, a.k.a. college graduates -- Sarah and I -- versus street smarts, Toure.

TOURE: Street smarts.

UNIDENTIFIED FEMALE: Just a high school degree.

BERNARD: So, it is Toure versus the others.

UNIDENTIFIED FEMALE: I thought it was just so boring. And like decent gimmick. But that show is becoming a parody of itself. It is kind all about, they had one of the winners, one of the street smarts kids say, oh, Mr. Trump, you're so generous and wonderful. They were there like to promote his kindness and altruism. Then, Melana (ph) his student to be won --

UNIDENTIFIED FEMALE: Melania (ph).

UNIDENTIFIED FEMALE: Sorry, Mr. Trump, I'm going to be fired now.

(CROSS TALK)

UNIDENTIFIED FEMALE: She shows up every episode. I don't know.

BERNARD: The product placement, too. There was the whole contest involved promoting a new sandwich for Burger King. Then every commercial was for that sandwich.

O'BRIEN: We've got to do that here on AMERICAN MORNING.

TOURE: How annoying is Danny with his stupid guitar? What a dork? I was praying for him to get fired.

(CROSS TALK)

O'BRIEN: This show is going to do great because you're still talking about it. Thank you very much.

Bill, back to you.

HEMMER: All right, Soledad.

Criminals beware, there is more juice in stun guns and a court apology for slavery.

Andy Serwer is back here "Mind Your Business" Where do you want to start? Markets first?

ANDY SERWER, COLUMNIST, "FORTUNE": I want to start with the markets. We've got all kinds of stories here this morning.

The Dow is trading upwards this morning. Let's take a look at the Big Board and see what we got? We don't have it quite up -- there we go. With 24 points to the upside. GE's earnings were in line this morning, so that's good news.

Other good news out of Washington, D.C., "The Wall Street Journal" and Reuters are reporting this morning that FCC Chairman Michael Powell will be stepping down. This is a bit of a surprise. And that announcement is supposed to come later today. So, we'll be following that here.

HEMMER: That is a surprise.

SERWER: That's correct. It is. Somewhere, Howard Stern is lifting a glass.

JP Morgan, the second largest bank in the United States is apologizing and has acknowledged that two of its predecessor banks in New Orleans received slaves as collateral in the pre-Civil War South. This is a very interesting story.

The city of Chicago made the company do an audit. Any businesses doing business with the city had to go through this process. And the bank discovered that Citizens Bank and Canal Bank received these slaves. Now those two banks merged in 1924, they failed in 1933. A federally chartered bank assumed some of their assets. That institution, the National Bank of Commerce was a precursor of BankOne. And BankOne was purchased last year by JP Morgan.

HEMMER: Now, there's some genealogy.

SERWER: That is holding the bank to a very, very high standard. I think that's safe to say.

Let's move on to TASER. "The New York Times" is reporting this morning that its latest stun gun, the old X-26, the X-26 is lacking in stun. It failed to subdue some suspects -- that suspect it did subdue.

Some suspects, it has failed to subdue. So get this. The company is acknowledging that it is increasing the power of the X-26 by 14 percent, not 13 percent, by 14 percent. Watch out, crooks, because the X-26 is going to be at full power very, very soon.

HEMMER: We will. You're on a roll.

SERWER: Yeah.

HEMMER: Watch that Michael Powell story throughout the day.

SERWER: That will be interesting to follow.

HEMMER: Thank you, Andy.

It is a bad habit that might seem silly but it could lead to serious health problems. Sanjay is back for a prescription for change in the "New You Revolution". That's up after this.

(COMMERCIAL BREAK)

HEMMER: On this Friday morning, all week long we've been introducing you to our "New You Revolution" participants. Tonight we'll meet our final participant, Jonathan Karp. O'BRIEN: Jonathan's habit is one that lots of people have, but not that many people like to talk about. Dr. Sanjay Gupta joins us with more.

Hey.

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Hey. Good morning, guys.

O'BRIEN: This is not life threatening or anything.

GUPTA: It is not life threatening. And Jonathan Karp is here.

He says he's been biting his nails, that is what we're talking about. A lot of people do this. He's been doing it his entire life. He wants to stop now. He's hoping that our "New You Revolution" team can finally help him quit.

(BEGIN VIDEOTAPE)

GUPTA (voice over): Meet Jonathan Karp.

JONATHAN KARP, NEW YOU REVOLUTION PARTICIPANT: Looking to follow up with you ...

GUPTA: A typical workday for Jonathan Karp looks a little something like this. A few cold calls, a quick glance at his lovely bride-to-be. More calls. And for lunch? A quick nibble on his nails.

KARP: Could be up to like 40 to 50 percent of the day. My hand would be in my mouth. Then I'd go through all kinds of fingers like enjoy them.

GUPTA: Sounds like a funny habit. Who doesn't know a nail biter?

KARP: It is kind of like, oh, I bite my nails. And then I'll be like, yeah are they this bad? And they're like -- ooh, no. You win. So it's like, if that were a competition or that were in the Olympics, I'd get a gold every time.

GUPTA: Except is it not a competition, it is a serious habit. Jonathan's nail biting puts him at high risk for infection. A lifetime of biting could have damaged his nail bed for good. And 28 years later Jonathan looks back to see this one habit consuming him almost every day since he was a kid.

KARP: The hardest part is when you're consciously saying I need to quit. And what happens is you start feeling these like little prickly spots.

GUPTA: The prickly, the nagging, the biting often happens in secret, at home when no one's looking, or in traffic on the way home.

KARP: I don't want to bite it, but I don't want to bite it.

(LAUGHTER) I keep putzing with it.

GUPTA: While it all seems like a joke, make no mistake, those nails are getting in the way of his day-to-day life.

UNIDENTIFIED FEMALE: I'm always just yelling at him about it.

GUPTA: His "New You" goal, to curb the nail nibbling before his wedding later this year.

KARP: Nice nails, and right at the tip, just that perfect white. If I see that, it is just like filet mignon.

(LAUGHTER)

(END VIDEOTAPE)

GUPTA: Welcome to the show. The gold medalist of nail biting.

HEMMER: You have a sense of humor about this. That was pretty northwest the piece there and how we've gotten to know you. How does this affect your life? Can you say that?

KARP: It's affecting my life more than ever right now, because I'm on national TV and people are just really writing in to me and telling me, you can do it. I've been biting, I didn't know that it was that bad. And I don't know. I got to stop. I'm getting married June 25th. That's really my motivated right now to stop.

O'BRIEN: Is it because you want to get rid of a bad habit because you're sort of ready to move on beyond this? Is that why? Or because of you're worried about medical problems behind nail biting, infection and stuff like that?

KARP: My motivation is for Erica, I want to have in our wedding photos, I want to have 10 perfect nails. That's the goal. I've always tried, ever since I can remember, I've always been biting my nails.

O'BRIEN: She's got you wrapped around her finger. You go, girl. I like that.

(CROSS TALK)

KARP: She hasn't complained at all, so that is another reason to go above and beyond.

O'BRIEN: Good for you. Can you do it in eight weeks?

GUPTA: We'll find out. You mention, medical and psychological. We're going to address all of that. To help you break this bad habit, Jonathan, we've consulted a psychologist and an expert in behavioral modification. Here is the "New You" prescription.

(BEGIN VIDEOTAPE)

KARP: You see me biting, just smack my hand right out of my face. That can get violent.

GUPTA: You've tried everything to stop. Hot sauce on your nails, bribery, even getting a slap on the hand. It is time for some new tactics. First a psychologist will help you explore your habit. Step one, self-monitoring.

UNIDENTIFIED MALE: Save whatever he bites off, even if it's just skin and cuticle.

GUPTA: It may be the key to figuring out when and why you're prone to biting.

Step two, relaxation training. Acupuncture, meditation, even hypnosis. Two steps in eight weeks could mean a new you and a new set of nails.

(END VIDEOTAPE)

HEMMER: Thank you, Sanjay. Jonathan, good luck to you.

The next step for all participants is to actually start making the changes. Next week we'll see if our Reverend Leigh Ann Raynor has made any progress eating healthier meals.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Have you ever done this before?

LEIGH ANN RAYNOR, "NEW YOU" PARTICIPANT: No. I didn't know you dredged food.

(END VIDEO CLIP)

HEMMER: We'll check in on the Reverend, we'll also see how Jonathan and the others are doing in week one.

O'BRIEN: If you missed any of our other participants, you can meet them all again on "House Call" tomorrow and Sunday morning, 8:30 a.m. Eastern time. You can follow their progress on the web by looking on to cnn.com/am.

Coming up on CNN this morning, one more official inaugural event to attend this morning. The president and Mrs. Bush attending a prayer service at Washington's National Cathedral. Clergy from around the country are involved. Rick and Daryn will have coverage in the next hour, on "CNN Live Today". AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Andy mentioned this a few moments ago, CNN confirming that Michael Powell, head of the FCC, will submit his resignation. We'll get more of this from down in Washington later today. The son of Colin Powell in the news today.

More on this later. First, here's Jack. JACK CAFFERTY, CNN ANCHOR, AMERICAN MORNING: That's interesting, isn't it?

The question is this, President Bush's goal of expanding freedom which, he talked on and on about in his speech yesterday, is it realistic?

JW in Tampa writes, "Ending tyranny and exporting freedom and democracy, before we straighten out the rest of the planet, maybe we should see to our own border security, crumbling infrastructure and provide for adequate flu vaccines? What do you think?"

Lee in Canton, Ohio, "Bush's goal of spreading freedom is as futilistic as the Soviet Union's goal of limiting it was. Spreading Communism bankrupted the Soviet Union. I have no doubt that occupying and spreading democracy to the Islamic nations of the world will do the same to the United States."

And Natalie in Mount Lookout, West Virginia, "The only threat to the American dream is big corporations and the politicians they own. We cannot save the world and we're not handpicked by God to do so. Maybe we should concentrate on our own problems and let the rest of the world do the same. Nobody has ever attacked Canada."

I guess that's true.

SERWER: Too cold.

CAFFERTY: And watch "In The Money" this weekend.

SERWER: Sure.

CAFFERTY: Because I need the money. I've got another tuition payment due.

(LAUGHTER)

HEMMER: I was just telling you guys. The president is so punctual for everything across his schedule. This swearing was actually early yesterday. It happened a few minutes before noon -- the Constitution says it should start at noon. He was early.

CAFFERTY: I wonder why they started it early.

HEMMER: I'm not going there.

We're never punctual, by the way, we're late again.

O'BRIEN: Speak for thyself, thank you.

HEMMER: Yes.

CAFFERTY: Yeah, what is this "we"?

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 January 21, 2005 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR, AMERICAN MORNING: There's your opening bell on Wall Street on a Friday morning, kicking things off down there; 10,471, off 68 points in trading from yesterday.
A lot of that coming on some pretty tough news from Delta Air Lines and the losses they incurred in the last quarter of 2004. Nasdaq MarketSite, 2,045, off 27 points in trading yesterday. So we'll see which way we go today.

Good morning, everybody. It's 9:30 here in New York. Good to have you along with us today.

The Eastern half of the U.S. about to get socked by another big winter storm. Snow and ice already making roads dangerous in the Mid- Atlantic states, especially in North Carolina, tough going there.

As much as a foot or more could hit in parts. Chad has the forecast as best as he can tell, 36 hours out. Back with Chad on that.

SOLEDAD O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Also this morning our series "What's In It For Me?" continues. Today Kelly Wallace looks at proposed changes in immigration laws. Eight million people could get documents to work legally, but there are powerful forces at work against them. We'll take a look at both sides of that issue, just ahead.

Heidi Collins back with us also, with the headlines.

Good morning.

HEIDI COLLINS, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning, once again, guys. Good morning to you, everybody.

"Now in the News" this morning: U.S. troops are beginning to trickle out of some tsunami-hit areas. About 15,000 American troops expected to pull out from Southern Asia within 60 days. Indonesia has said it wants international soldiers to leave the Aceh Province by the end of March. Some aid groups say U.S. forces are playing a key role in the effort.

The confirmation of secretary of State nominee Condoleezza Rice is on hold until next week. The Senate has set nine hours aside on Tuesday for additional debate. A full Senate vote is expected on Wednesday.

Northern Texas, now, the search underway this morning for a 19- year-old Wal-Mart cashiers whose apparent abduction was caught on tape. Surveillance video from a Wal-Mart parking lot shows the young woman chased down and pushed into her vehicle. Megan Leeann Holden was last seen leaving work on Wednesday night. A $10,000 reward has been posted for anyone with information in the case.

Police in Philadelphia are looking into a complaint against comedian Bill Cosby. The woman described as an acquaintance of the entertainer claims he touched her inappropriately one year ago. Cosby's attorney says no criminal complaint has been filed and called the allegation, quote, "utterly preposterous and plainly bizarre". Cosby has canceled some upcoming public appearances citing personal reasons.

Back over to you guys.

HEMMER: All right, Heidi. Thanks.

It is snowing again this morning in parts of North Carolina. Even a little bit of snow and ice can paralyze that state. On Wednesday, an inch of snow came down in Raleigh-Durham. Roads became ice rinks instantly. Traffic was gridlocked. Forget about kids being allowed to stay home from school, instead the snow forced nearly 3,000 students to sleep over at their schools.

I bet they loved that -- not. Here's Chad Myers watching the forecast. Give us the timeline, Chad. What do you expect at this point?

(WEATHER FORECAST)

O'BRIEN: Today, the president's second term begins in earnest. We continue our series "What's In It For Me?" This morning we're focusing on immigration. Kelly Wallace is with us with more.

Good morning.

KELLY WALLACE, CNN CORRESPONDENT, AMERICAN MORNING: Good morning, Soledad.

What we tried to do here, focus on one person, one family, to find out what they expect President Bush to do over the next four years. Today we focus on a man who came to the U.S. Illegally, but now is a legal resident working with immigrants. And we asked what's in it for him when it comes to the president's second term agenda.

In Hampstead, Long island, Carlos Canales is always on the move. The community organizer spends his days trying to help migrant workers like these men who are waiting for construction work; many are here illegally.

CARLOS CANALES, WORKPLACE PROJECT: They are not delinquent. They come here because they want to support their families. They want to make a living. They want to take food to the table.

Canales was once in their shoes. He fled El Salvador's civil war in 1986. Now he's a legal resident in the U.S. working towards citizenship. His hopes for the new Bush administration ... CANALES: Give the immigrant the same opportunity that was given to all of those that came before us, to the United States.

WALLACE: President Bush has promised to try and grant temporary worker status to some of the 8 million undocumented immigrants in the U.S., but Canales says that doesn't go far enough.

CANALES: You come here, as a slave, to work with no other right, but just the right to -- just to work, like an animal.

WALLACE: He knows some Americans instead want a crackdown on illegal immigration. In fact, one of the first measures Congress will take up, one Republican lawmaker's push to ban states from providing driver's licenses to illegal immigrants.

REP. JAMES SENENBRENNER (R) WISCONSIN: American citizens have the right to know who is in their country.

WALLACE: As well as a right to prevent their tax dollars from going to illegal immigrants, says this California radio host.

KEN CHAMPEAU, RADIO HOST: California has a cost of about $5 billion a year for illegal immigration. That's education, health care and all the other services that are used. People are tired of that.

WALLACE: But Canales says any crackdown on immigration won't keep people from coming to the United States illegally.

CANALES: We don't here we want to violate your laws here. We're coming where we need to come. It is a matter of necessity.

WALLACE: He says he's not too hopeful about the future, saying he doubts the president, who promised immigration reform during the campaign, will deliver.

CANALES: I don't see the logic. I mean, in politics, everything is business. He didn't do it before he was in election, why does he have to do it now?

(END VIDEOTAPE)

WALLACE: But the president in a series of interviews before his inauguration says he will push for this, Soledad. But as you know, to get this passed and other priorities, he must even overcome opposition within his own party.

O'BRIEN: So, then if you had to lay a wager, obviously the man you focused on not sounding very optimistic. What do you think?

WALLACE: Well, it just seems that Republican leaders, you had Sensenbrenner there, you had House Majority Leader Tom Delay, others, who feel that the momentum is on their side. That they do not want to see what President Bush is proposing. They think it will reward illegal immigrants coming to the United States. So the momentum they think is on their side. Again, the president, as he's talked about, he doesn't have a lot of time. He has a number of priorities that have a lot of opposition from Republicans. Seems like Social Security reform might be the one that he'll put that political capital on.

O'BRIEN: Wasn't mentioned in the speech last night, was it?

WALLACE: I guess State of the Union?

O'BRIEN: Kelly, thank you very much.

WALLACE: Sure.

O'BRIEN: Bill, back to you.

HEMMER: How does the real CIA stack up with the Hollywood spy games? Former Agent Lindsay Moran is out with a new book called, "Blowing My Cover: My Life As A CIA Spy". Did her life look anything like the TV show "Alias"? She'll tell us Monday on AMERICAN MORNING.

In a moment, one of the country's biggest companies apologizing for its role in a dark chapter of American history. Andy has that. And Donald Trump made some changes for the new season "The Apprentice". Will they fly with viewers? "90 Second Pop" has a shot at that, right after this.

(COMMERCIAL BREAK)

O'BRIEN: A little Prince to start your morning. It is time for "90 Second Pop" for a Friday, with our Pop players, Sarah Bernard contributing editor for "New York" magazine.

Good morning to you.

SARAH BERNARD, EDITOR, "NEW YORK": Good morning.

O'BRIEN: Toure, CNN pop culture correspondent. Good morning.

TOURE, CNN POP CULTURE CORRESPONDENT: How are you?

O'BRIEN: I'm very well. Thank you for asking.

(LAUGHTER)

(UNINTELLIGIBLE) Good morning, Jessica. Nice to see you.

UNIDENTIFIED FEMALE: Good morning.

O'BRIEN: Let's get right to it. Spongebob, is the controversy that Spongebob is gay, that he might be gay, or is it that he supports gay rights?

TOURE: I love, love, love this story. Focus on the Family, a Christian Conservative Group is attacking Spongebob Squarepants because they think he's promoting homosexual values. Like he's holding hands with his little friend. Spongebob Squarepants, people. I love it how Christians often don't act so Christian around homosexuality. Like that's the one thing that, oh, my god!

UNIDENTIFIED FEMALE: Or cartoon characters.

TOURE: Right! It's Spongebob.

(CROSS TALK)

O'BRIEN: But there's an issue, too, with a Web site, right? It is not just that he holds --

TOURE: No, it's a video that Nile Rogers, producer from before, is making because he's part of creating --

O'BRIEN: Which has a lot of these little characters for kids.

TOURE: Teaching tolerance to kids. Not teaching homosexuality, just tolerance.

BERNARD: It has basically every cartoon character that would be for any four-year-old right now, there is Bob the Builder, Sesame Street people.

UNIDENTIFIED FEMALE: Those are my people, by the way.

UNIDENTIFIED FEMALE: Big Bird might be getting it on. So I don't know.

O'BRIEN: Any legs to this thing or no, do you think?

BERNARD: Actually, he is even saying that someone has confused two different sites, right?

Niles Rodgers says, his site promotes tolerance and there's another with a similar name that actually is a gay youth organization. He thinks it might be some kind of confusion.

TOURE: It is ultimately, there is this kind of McCarthyism around homosexuality. We're going to root it out everywhere, every crevice, even if it's not really not there.

O'BRIEN: And if Spongebob is gay, then we're going to find out.

Let's move on to our next topic, shall we? "Apprentice 3", how does it look?

UNIDENTIFIED FEMALE: I don't think it looks that good. I got to say.

TOURE: Let me explain to you why they don't like it and the high school graduate does. Because they're college graduates. And my team won.

UNIDENTIFIED FEMALE: That is the gimmick this year, it is book smarts, a.k.a. college graduates -- Sarah and I -- versus street smarts, Toure.

TOURE: Street smarts.

UNIDENTIFIED FEMALE: Just a high school degree.

BERNARD: So, it is Toure versus the others.

UNIDENTIFIED FEMALE: I thought it was just so boring. And like decent gimmick. But that show is becoming a parody of itself. It is kind all about, they had one of the winners, one of the street smarts kids say, oh, Mr. Trump, you're so generous and wonderful. They were there like to promote his kindness and altruism. Then, Melana (ph) his student to be won --

UNIDENTIFIED FEMALE: Melania (ph).

UNIDENTIFIED FEMALE: Sorry, Mr. Trump, I'm going to be fired now.

(CROSS TALK)

UNIDENTIFIED FEMALE: She shows up every episode. I don't know.

BERNARD: The product placement, too. There was the whole contest involved promoting a new sandwich for Burger King. Then every commercial was for that sandwich.

O'BRIEN: We've got to do that here on AMERICAN MORNING.

TOURE: How annoying is Danny with his stupid guitar? What a dork? I was praying for him to get fired.

(CROSS TALK)

O'BRIEN: This show is going to do great because you're still talking about it. Thank you very much.

Bill, back to you.

HEMMER: All right, Soledad.

Criminals beware, there is more juice in stun guns and a court apology for slavery.

Andy Serwer is back here "Mind Your Business" Where do you want to start? Markets first?

ANDY SERWER, COLUMNIST, "FORTUNE": I want to start with the markets. We've got all kinds of stories here this morning.

The Dow is trading upwards this morning. Let's take a look at the Big Board and see what we got? We don't have it quite up -- there we go. With 24 points to the upside. GE's earnings were in line this morning, so that's good news.

Other good news out of Washington, D.C., "The Wall Street Journal" and Reuters are reporting this morning that FCC Chairman Michael Powell will be stepping down. This is a bit of a surprise. And that announcement is supposed to come later today. So, we'll be following that here.

HEMMER: That is a surprise.

SERWER: That's correct. It is. Somewhere, Howard Stern is lifting a glass.

JP Morgan, the second largest bank in the United States is apologizing and has acknowledged that two of its predecessor banks in New Orleans received slaves as collateral in the pre-Civil War South. This is a very interesting story.

The city of Chicago made the company do an audit. Any businesses doing business with the city had to go through this process. And the bank discovered that Citizens Bank and Canal Bank received these slaves. Now those two banks merged in 1924, they failed in 1933. A federally chartered bank assumed some of their assets. That institution, the National Bank of Commerce was a precursor of BankOne. And BankOne was purchased last year by JP Morgan.

HEMMER: Now, there's some genealogy.

SERWER: That is holding the bank to a very, very high standard. I think that's safe to say.

Let's move on to TASER. "The New York Times" is reporting this morning that its latest stun gun, the old X-26, the X-26 is lacking in stun. It failed to subdue some suspects -- that suspect it did subdue.

Some suspects, it has failed to subdue. So get this. The company is acknowledging that it is increasing the power of the X-26 by 14 percent, not 13 percent, by 14 percent. Watch out, crooks, because the X-26 is going to be at full power very, very soon.

HEMMER: We will. You're on a roll.

SERWER: Yeah.

HEMMER: Watch that Michael Powell story throughout the day.

SERWER: That will be interesting to follow.

HEMMER: Thank you, Andy.

It is a bad habit that might seem silly but it could lead to serious health problems. Sanjay is back for a prescription for change in the "New You Revolution". That's up after this.

(COMMERCIAL BREAK)

HEMMER: On this Friday morning, all week long we've been introducing you to our "New You Revolution" participants. Tonight we'll meet our final participant, Jonathan Karp. O'BRIEN: Jonathan's habit is one that lots of people have, but not that many people like to talk about. Dr. Sanjay Gupta joins us with more.

Hey.

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Hey. Good morning, guys.

O'BRIEN: This is not life threatening or anything.

GUPTA: It is not life threatening. And Jonathan Karp is here.

He says he's been biting his nails, that is what we're talking about. A lot of people do this. He's been doing it his entire life. He wants to stop now. He's hoping that our "New You Revolution" team can finally help him quit.

(BEGIN VIDEOTAPE)

GUPTA (voice over): Meet Jonathan Karp.

JONATHAN KARP, NEW YOU REVOLUTION PARTICIPANT: Looking to follow up with you ...

GUPTA: A typical workday for Jonathan Karp looks a little something like this. A few cold calls, a quick glance at his lovely bride-to-be. More calls. And for lunch? A quick nibble on his nails.

KARP: Could be up to like 40 to 50 percent of the day. My hand would be in my mouth. Then I'd go through all kinds of fingers like enjoy them.

GUPTA: Sounds like a funny habit. Who doesn't know a nail biter?

KARP: It is kind of like, oh, I bite my nails. And then I'll be like, yeah are they this bad? And they're like -- ooh, no. You win. So it's like, if that were a competition or that were in the Olympics, I'd get a gold every time.

GUPTA: Except is it not a competition, it is a serious habit. Jonathan's nail biting puts him at high risk for infection. A lifetime of biting could have damaged his nail bed for good. And 28 years later Jonathan looks back to see this one habit consuming him almost every day since he was a kid.

KARP: The hardest part is when you're consciously saying I need to quit. And what happens is you start feeling these like little prickly spots.

GUPTA: The prickly, the nagging, the biting often happens in secret, at home when no one's looking, or in traffic on the way home.

KARP: I don't want to bite it, but I don't want to bite it.

(LAUGHTER) I keep putzing with it.

GUPTA: While it all seems like a joke, make no mistake, those nails are getting in the way of his day-to-day life.

UNIDENTIFIED FEMALE: I'm always just yelling at him about it.

GUPTA: His "New You" goal, to curb the nail nibbling before his wedding later this year.

KARP: Nice nails, and right at the tip, just that perfect white. If I see that, it is just like filet mignon.

(LAUGHTER)

(END VIDEOTAPE)

GUPTA: Welcome to the show. The gold medalist of nail biting.

HEMMER: You have a sense of humor about this. That was pretty northwest the piece there and how we've gotten to know you. How does this affect your life? Can you say that?

KARP: It's affecting my life more than ever right now, because I'm on national TV and people are just really writing in to me and telling me, you can do it. I've been biting, I didn't know that it was that bad. And I don't know. I got to stop. I'm getting married June 25th. That's really my motivated right now to stop.

O'BRIEN: Is it because you want to get rid of a bad habit because you're sort of ready to move on beyond this? Is that why? Or because of you're worried about medical problems behind nail biting, infection and stuff like that?

KARP: My motivation is for Erica, I want to have in our wedding photos, I want to have 10 perfect nails. That's the goal. I've always tried, ever since I can remember, I've always been biting my nails.

O'BRIEN: She's got you wrapped around her finger. You go, girl. I like that.

(CROSS TALK)

KARP: She hasn't complained at all, so that is another reason to go above and beyond.

O'BRIEN: Good for you. Can you do it in eight weeks?

GUPTA: We'll find out. You mention, medical and psychological. We're going to address all of that. To help you break this bad habit, Jonathan, we've consulted a psychologist and an expert in behavioral modification. Here is the "New You" prescription.

(BEGIN VIDEOTAPE)

KARP: You see me biting, just smack my hand right out of my face. That can get violent.

GUPTA: You've tried everything to stop. Hot sauce on your nails, bribery, even getting a slap on the hand. It is time for some new tactics. First a psychologist will help you explore your habit. Step one, self-monitoring.

UNIDENTIFIED MALE: Save whatever he bites off, even if it's just skin and cuticle.

GUPTA: It may be the key to figuring out when and why you're prone to biting.

Step two, relaxation training. Acupuncture, meditation, even hypnosis. Two steps in eight weeks could mean a new you and a new set of nails.

(END VIDEOTAPE)

HEMMER: Thank you, Sanjay. Jonathan, good luck to you.

The next step for all participants is to actually start making the changes. Next week we'll see if our Reverend Leigh Ann Raynor has made any progress eating healthier meals.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Have you ever done this before?

LEIGH ANN RAYNOR, "NEW YOU" PARTICIPANT: No. I didn't know you dredged food.

(END VIDEO CLIP)

HEMMER: We'll check in on the Reverend, we'll also see how Jonathan and the others are doing in week one.

O'BRIEN: If you missed any of our other participants, you can meet them all again on "House Call" tomorrow and Sunday morning, 8:30 a.m. Eastern time. You can follow their progress on the web by looking on to cnn.com/am.

Coming up on CNN this morning, one more official inaugural event to attend this morning. The president and Mrs. Bush attending a prayer service at Washington's National Cathedral. Clergy from around the country are involved. Rick and Daryn will have coverage in the next hour, on "CNN Live Today". AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

HEMMER: Andy mentioned this a few moments ago, CNN confirming that Michael Powell, head of the FCC, will submit his resignation. We'll get more of this from down in Washington later today. The son of Colin Powell in the news today.

More on this later. First, here's Jack. JACK CAFFERTY, CNN ANCHOR, AMERICAN MORNING: That's interesting, isn't it?

The question is this, President Bush's goal of expanding freedom which, he talked on and on about in his speech yesterday, is it realistic?

JW in Tampa writes, "Ending tyranny and exporting freedom and democracy, before we straighten out the rest of the planet, maybe we should see to our own border security, crumbling infrastructure and provide for adequate flu vaccines? What do you think?"

Lee in Canton, Ohio, "Bush's goal of spreading freedom is as futilistic as the Soviet Union's goal of limiting it was. Spreading Communism bankrupted the Soviet Union. I have no doubt that occupying and spreading democracy to the Islamic nations of the world will do the same to the United States."

And Natalie in Mount Lookout, West Virginia, "The only threat to the American dream is big corporations and the politicians they own. We cannot save the world and we're not handpicked by God to do so. Maybe we should concentrate on our own problems and let the rest of the world do the same. Nobody has ever attacked Canada."

I guess that's true.

SERWER: Too cold.

CAFFERTY: And watch "In The Money" this weekend.

SERWER: Sure.

CAFFERTY: Because I need the money. I've got another tuition payment due.

(LAUGHTER)

HEMMER: I was just telling you guys. The president is so punctual for everything across his schedule. This swearing was actually early yesterday. It happened a few minutes before noon -- the Constitution says it should start at noon. He was early.

CAFFERTY: I wonder why they started it early.

HEMMER: I'm not going there.

We're never punctual, by the way, we're late again.

O'BRIEN: Speak for thyself, thank you.

HEMMER: Yes.

CAFFERTY: Yeah, what is this "we"?

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