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The Situation Room

Republicans Demand Investigation Into New CIA Leak; Election Day in Several States; Rift in Bush-Cheney Relationship?

Aired November 08, 2005 - 19:00   ET

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

WOLF BLITZER, CNN ANCHOR: You're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Happening now, a CIA leak probe -- again. It's take two -- a major new investigation into who told the "Washington Post" about alleged secret prisons run by the CIA. Republicans say they want a brand new investigation. And we have just learned the CIA has referred the matter formally to the Justice Department, suggesting classified information may have been leaked.

It's Election Day in several states. And, while President Bush's name isn't on the ballot, his reputation certainly is on the line. The count could be a measure of the president's popularity.

And could public anger and discontent over everything from the Iraq war to CIA leaks to indictments in the White House be the killjoy in the president and vice president's close relationship?

You're in THE SITUATION ROOM.

Polls are closing right now in a very important election in Virginia. We are going to have the results, coming into THE SITUATION ROOM momentarily, at least the first results. We will go there right away.

But first, there's an important developing story unfolding right now. The leaking of a CIA officer's identity and the investigation that followed have left the Bush administration bruised and battered. But right now, congressional Republican leaders say they want a brand new probe into the possible leak of classified information secret prisons for terror suspects.

Our congressional correspondent, Ed Henry, is standing by on Capitol Hill.

But let's begin with our national security correspondent, David Ensor. David, what's going on?

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Wolf, the CIA general counsel's office has sent a report to the Justice Department. They did it, last week in fact, soon after the "Washington Post" report on the secret prisons was published. That's according to U.S. officials who declined to be identified. The action is required by law whenever the CIA had any reason to believe classified information may have been leaked. It was the same move taken when clandestine CIA officer Valerie Plame Wilson's name was included in a newspaper column by Robert Novak.

Now, generally, the Justice Department launches -- launches an investigation into the matter when these references are made by the CIA general counsel.

The CIA holds Khalid Shaikh Mohammed, Ramzi Binalshibh, Abu Zubaydah, and other top al Qaeda operatives at undisclosed locations outside the U.S. And officials say, the men have provided useful intelligence and could continue to do so. The "Washington Post" reported that the CIA was holding some of its most prominent al Qaeda prisoners at undisclosed prisons in the former Soviet Bloc.

Wolf.

BLITZER: All right, David, thank you very much.

Republican leaders are up in arms about the possible prison leak, and they want a brand new investigation. But one GOP senator says his colleagues may have to look close to home. This is an amazing turn of events.

Let's turn to our congressional correspondent Ed Henry. Ed?

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: Wolf, that's right. Today, House Speaker Dennis Hastert and Senate Majority Leader Bill Frist formally launched a joint investigation, a special investigation, by the House and Senate Intelligence Committees to get to the bottom of this classified leak of information.

But there was a little bit of a problem. It was only in the last hour that Senator Frist actually signed off on this investigation, perhaps because a little bit of a controversy flared up late today. Basically, Republican Senator Trent Lott said that, while a lot of people up here have been saying that it appears from the "Washington Post" story that current and former CIA official who were quoted in that "Washington Post" story are the ones who are responsible for the leak, Senator Lott is saying he also believes that at least one Republican senator, maybe even a Republican staffer, was involved in this leak as well.

Lott basically revealed to reporters that, at a closed-door meeting last Tuesday, here in the Capitol, Republican senators only, no staff in the actual room, and Vice President Cheney at this luncheon as well, Lott says they discussed these secret prisons. This information was flying around. And Lott said, point blank, he believes that a lot of that "Washington Post" report investigation -- quote -- "came out of that room" late Tuesday. And he was pointing at the room where they had lunch.

He added of the vice president -- quote -- "He was up here last week and he talked up here in that room, right there, in a room full of nothing but senators. And every word that was said in there went right to the newspaper."

Lott was basically adding, as well, he thinks this Republican-led investigation on the Hill could end up becoming, in part, an ethics investigation of a Republican senator as to whether or not they leaked at least some of this information or confirmed some of it. Democrats, as you can imagine, having a field day that this investigation may boomerang on Republicans. Senate Democratic Leader Harry Reid basically telling me that he wants to know whether Republicans will end up investigating themselves. A Democratic staffer saying, he wants to know, since Vice President Cheney was in this room, what did Vice President Cheney say and when did he say it?

Wolf.

BLITZER: All right, Ed Henry, thank you very much.

And we will have much more on this important story, another leak investigation. Our senior legal analyst, Jeff Toobin, will be joining us later this hour. We will also have more on the relationship that apparently is emerging between the president and the vice president of the United States.

But we will move on to America's vote right now.

From coast to coast, voters are making their voices heard, and the White House is listening. Will the president help or hurt Republicans in the contest today? In Virginia, the polls have just closed. And we're about to get in the first early results. The president made an eleventh-hour appearance with the Republican candidate last night. Polls have shown the candidates are neck-and- neck. Will Mr. Bush be able to deliver the state? We're watching Virginia closely.

We are also watching New Jersey, a freewheeling, free-spending and mudslinging political fight, drawing to a close there as well. It's a chance for Republicans to try to grab a seat out of the Democrats' hands.

And in California, will Governor Arnold Schwarzenegger have another Hollywood ending? His name isn't on the ballot, but his prestige is up for a vote. The governor called today's rare special election on a series of proposals, billed as part of his reform agenda. They deal with tenure for teachers, union dues, a state spending cap and redistricting. It would be a major blow to the governor if he loses.

We have reporters on the scene covering all angles of this story. Our Kimberly Osias is monitoring the nail-biting in Richmond, Virginia. Our senior political analyst Bill Schneider is out in Los Angeles. Chris Huntington is keeping a watch on things in New Jersey.

But let's begin with our senior analyst, Jeff Greenfield. He's in New York. Jeff, what's at stake today for the president of the United States?

JEFF GREENFIELD, CNN SENIOR ANALYST: Wolf, the most honest thing I can say is what is at stake is the likelihood that, if Republicans go down in both Virginia and New Jersey, that tomorrow's stories will lay that in part or in whole on the president's low popularity. How much you can say about that in New Jersey is problematic. It is a blue state. But Virginia is a solidly Republican state, and the president's popularity is low even there.

You know, historically, off-year elections have almost nothing to tell us about what happens in the midterms and in the presidential elections. But in an era of 24-hour news and an area where the president is substantially less popular than he was when he was -- when -- a year ago, when he got reelected, I think it is going to be another hit at a time they can't afford it.

BLITZER: All right, Jeff Greenfield, thank you very much.

Let's go to CNN's Kimberly Osias. She's joining us now in Richmond. I guess there is a lot of tension there. The polls have just closed.

KIMBERLY OSIAS, CNN CORRESPONDENT: Indeed, there is, Wolf. But both candidates are saying that they feel very confident. At least, that's what their aides are saying publicly. Now behind closed doors, it may be a vastly different story, because this, of course, is a race that is too close to call.

Now, I'm at Republican candidate Jerry Kilgore's campaign headquarters. For his part, the candidate is across the street, watching the returns at an area hotel. He did cast his ballot earlier today after sort of shaking the kinks out, getting the stress out, doing a little four-mile run. Then he cast his ballot near Richmond at his daughter's school.

Democratic candidate Tim Kaine did the same. He cast his ballot in Richmond as well.

Now, I mentioned this is a very tight race. Just to give you an idea of how tight it is, some polls actually show the distance between the two candidates within the margin of error. So of course, every vote is going to count. Now, talking about a factor that really may come into play is the independent candidate, Russell Potts. Now, he's polling about 4 percent in the polls. And he could actually siphon votes away from Kilgore and hand Kaine a win. So both sides really pulling out a lot of political muscle.

You mentioned, sort of in the eleventh hour, a lot of big, heavy campaigning. President Bush appearing at a Virginia hangar with Kilgore, fresh off of his South American visit. Now, this is important and interesting, because the candidate has really separated himself from the president in the past, even receiving a little bit of flak from the GOP for doing so when he didn't appear at a war on terror rally just last month.

Wolf.

BLITZER: All right, Kimberly, thank you very much. The polls, as I said, have just closed in Virginia. So far, we have no results. But throughout this hour here in THE SITUATION ROOM, we will update you as those results come in.

Let's head out West right now, where our senior political analyst, Bill Schneider, is standing by in L.A. What's on the line for the governor, Governor Schwarzenegger, Bill?

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: A great deal is on the line. We just mentioned that we're not sure how much President Bush will influence the results in New Jersey and Virginia. But there's no question that the election in California will be all about Governor Schwarzenegger, even though his name is not on the ballot. He called the special election. He endorsed four ballot measures that he put on the ballot in the special election.

And what's interesting is, he's being outspent in his own special election that he called. Right now, the unions that he challenged this year are spending more money than he is to defeat his propositions. They're all struggling in the polls. And if they all lose, then of course, Governor Schwarzenegger, who was just elected two years ago in California in that dramatic recall, then there will be a big question mark over whether he can be reelected next year.

BLITZER: Bill Schneider reporting for us. Bill, we will check back with you throughout the night here on CNN.

Let's go to New Jersey right now. CNN's Chris Huntington is in East Brunswick. The race in New Jersey, Chris, has been especially expensive and especially nasty.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Wolf, you have got two multi-millionaires. Senator Jon Corzine, of course, ran Goldman Sachs before he became a senator. His Republican counterpart, Forrester, ran a prescription benefits company to -- to a very solid earning for himself. They have been spending an awful lot of their money in a negative campaign, recently, allegations of marital infidelity -- the most recent blow coming from Forrester, plucking a quote from Jon Corzine's ex-wife, in which she was reacting to a quote from Mr. Forrester's wife, and Jon Corzine's wife saying that, Jon let us down and he will let New Jersey down.

That kicked off a counterattack from the Corzine camp, likening the Forrester campaign to the current Bush White House -- the imbroglio that you're talking about that continues in the White House certainly playing a featured role here in New Jersey.

As far as substantive issues, the biggest issue on the ballot for New Jersey voters is something that resonates with Americans all around the country, and that's property taxes. They are very high here in New Jersey. Douglas Forrester has run a very solid campaign, with a very clear message, saying that he will lower property taxes by 30 percent in three years, if elected.

Corzine has countered with a plan that involves tax rebates of 10 percent a year over four years. It's perhaps a little bit more difficult to grasp. That could be the crucial effort -- the issue -- also, what the state's majority of independent voters do. And that's, of course, where all the wooing is taking place.

Wolf.

BLITZER: Chris Huntington in New Jersey. We will stand by for the results from there as well.

We are also keeping an eye on the mayoral race in New York City. Many people think the only surprise would be if Republican Mayor Michael Bloomberg actually lost. That's unlikely. Polls have shown the mayor with a very comfortable, even double-digit lead over his Democratic opponent, Fernando Ferrer.

Time now for the "Cafferty File". Jack Cafferty standing by in New York with some thoughts. Jack?

JACK CAFFERTY, CNN ANCHOR: Switching back to the -- to the White House for a moment, one of the great partnerships, Wolf, in recent memory in Washington may be showing some signs of fatigue.

Thomas DeFrank suggests in a piece in the "New York Daily News" today that things are not as cozy as they once were between President Bush and Vice President Dick Cheney. DeFrank is suggesting that Cheney has lost some clout, though he remains a valued counselor to the president.

Sources point to Cheney's stubborn advocacy of a troubled Iraq policy. And they also say that Cheney was wounded by the indictment of his chief of staff, Scooter Libby. An administration official says, any suggestion of trouble between Bush and Cheney is -- quote -- "categorically false" -- unquote.

So, here's the question. How significant would a rift between the president and vice president be? Email us at CaffertyFile@CNN.com. We will read some of your thoughts -- a weighty one, it is -- in about a half-hour or so.

BLITZER: All right, Jack, thanks very much.

And we should tell our viewers that Thomas DeFrank of the "New York Daily News" is going to be joining us this hour here in THE SITUATION ROOM to give us his story, what he's learned about the relationship, fraying, apparently, between president and the vice president.

We are also watching the results. We are hoping to get results coming in soon from Virginia, the New Jersey race, the Virginia race. The polls have closed in Virginia. New York, the mayoral race there. We're watching all of this for you and we will have much more on that coming up throughout this program and, indeed, throughout this night here on CNN.

Anderson Cooper is in THE SITUATION ROOM. That is coming up in just a moment. We will check in with Anderson to see what he has got on his agenda.

Plus, riots and outrage in France -- emergency laws passed in -- pressed into action. Will curfews stop the worst violence there in decades? Our Christiane Amanpour is standing by live in Paris. We will go to her right away.

Also, authorities say a student opens fire and kills an assistant principal. We will find out what went so terribly wrong at one school. We will have that story.

And more on the Bush-Cheney relationship. Is there a divide in the White House -- White House? We are taking a much closer look.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: After almost two weeks of violence, the French government has declared a state of emergency, clearing the way for curfews and the jailing of curfew-breakers. But the government is also offering a package of reforms aimed at the social problems that have fueled the arson attacks.

Our chief international correspondent, Christiane Amanpour, is joining us now, live from Paris, with the latest. What is the latest, Christiane?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, Wolf, the latest is that Paris is very quiet, as it was overnight, now that the curfew has gone into effect. And some cities and towns have actually implemented it -- that about an hour or so ago.

They have also seen that, in some parts of this country, there's much less violence, as they, police, have reported it, at the beginning of the night than there was, for instance, this time in the last previous nights. On the other hand, in Toulouse, in southern France, just as there was last night, there have been some clashes and some burned vehicles.

While promising tough law-and-order measures, the government has also, for instance, called not just for curfews in a 12-day state of emergency, but implicitly recognized now and said publicly, the prime minister, that what's going on is as much a warning and appeal as anything else, he said so, this from the ghettos. And he has promised that his government, after cutting back on funds and incentives for these ghettos, will try to restart urban renewal programs, will try to help the young, the poor there, in terms of schools and employment.

Wolf.

BLITZER: Is there a sense that these drastic measures, the curfews, the state of emergency, will have a dramatic effect?

AMANPOUR: Well, some of the pictures we just showed demonstrated that, in some of these areas where the curfews have been put -- and it's not many places, just a few towns -- it has had a marked impression. There's been no violence reported in those areas yet.

On the other hand, some people have said that they're very angry and upset. The whole curfew idea reminds them of a military response. You know, this curfew was first invoked more than 50 years ago to deal with the unrest in Algeria back then, in France's colony back then. And it's never been imposed here in France.

So, they're very concerned about that. And they keep saying that this is not something that needs to be dealt with militarily, but it needs to be dealt with socially and politically. For instance, they are calling for basic political representation here. They don't even have that, the -- many of the immigrants, the blacks, the people from North Africa, Muslims, are not even represented in the House of Parliament here, in the National Assembly.

So, there's a -- there's a whole sort of (SPEAKING IN FRENCH), as they say here in France, an appeal for attention on these devastated suburbs and projects that these people are coming from.

BLITZER: Christiane Amanpour reporting from Paris. Thank you very much, Christiane. We will check back with you throughout the night.

Let's check in with CNN's Anderson Cooper right now. He's got a preview of what's coming up on his program. Anderson, how you doing?

ANDERSON COOPER, CNN ANCHOR: Wolf, doing well. Thanks.

You have been following the school shooting in Tennessee. Tonight, at 10:00, we are going to be working to put faces and a back- story to the facts. We will find out the latest.

We will also get the read on some state and local elections with serious national impact. Arnold Schwarzenegger pushing changes that might just affect who represents you in Congress, even if you live outside California.

Also, columnist Maureen Dowd is with us. Her question: Are men necessary? It's both the title of her new book and the topic of quite a conversation we had. That's at 10:00 tonight on 360.

Wolf.

BLITZER: We will be watching. Good work.

Maureen Dowd, love her or hate her, she's a fabulous columnist. I think even her critics will agree on that.

Anderson Cooper -- his program, ANDERSON COOPER 360, coming up, 10:00 p.m. Eastern, right after LARRY KING LIVE.

Still to come here in THE SITUATION ROOM, the polls have just closed in Virginia. Will President Bush help capture the governor's race there? We will have the early numbers. They're coming in to THE SITUATION ROOM.

And the Bush-Cheney divide -- is there a serious split within the White House? We will find out why the CIA leak may be causing a rift.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back to THE SITUATION ROOM.

CNN's Zain Verjee joining us now from the CNN Center in Atlanta with a closer look at some other stories making news. Hi, Zain.

ZAIN VERJEE, CNN ANCHOR: Hi, Wolf. Authorities in Tennessee say a student opened fire on the principal and two assistant principals of his high school. One assistant principal was killed. The principal and the other assistant were seriously wounded. The student is in custody. It happened at Campbell County Comprehensive High School in Jacksboro, Tennessee, near Knoxville -- authorities saying no students were hurt.

A prominent former war crimes prosecutor says it's time to move the trial of Saddam Hussein out of Iraq. Richard Goldstone was reacting to the killing of a second member of the defense team for Hussein's co-defendant. Goldstone was the first prosecutor for a U.N. tribunal for war crimes in the former Yugoslavia. He says he just can't see how a fair trial is possible now in Iraq, amid the insurgency and all the domestic turmoil.

One month after an earthquake devastated parts of Pakistan, aid agencies have raised their estimate of the death toll. They now say more than 87,000 people were killed. Officials fear winter could bring in a new wave of deaths from hypothermia, as well as pneumonia. The United Nations says more than 100,000 survivors still have received no aid.

Ethics class was in session at the White House today. Among the students, President Bush's top political adviser, Karl Rove. Mr. Bush ordered refresher briefings in ethics after the indictment of Vice President Cheney's chief of staff, Lewis Scooter Libby, in connection with the CIA leak investigation. Libby resigned after he was indicted. Rove has -- was not indicted, but he is still under investigation.

Wolf.

ZAHN: Zain, getting back to the earthquake in Pakistan, what do the aid agencies say they need urgently right now?

VERJEE: Three things, Wolf. They say they need cash. They need way more money. Secondly, they need tents. They also say they really need blankets. The winter is coming. And that's really going to be a harsh situation for a lot of people, about 100,000 that still haven't received any aid. They say it's essentially a race against time.

And one of the things they really need to do, the U.N. is saying, is they need to work on coordinating all the different aid agencies, trying to help on the ground. They say it's doable. And it's not mission impossible.

Wolf.

ZAHN: All right, Zain, thank you very much. Zain Verjee reporting from the CNN Center.

We're getting some very, very early results coming into THE SITUATION ROOM from Virginia, the contest there, less than a half of 1 percent of the vote now officially in. You can see, the Democratic candidate with 41 percent, the Republican candidate, Kilgore, with 56 percent. But once again, these are very, very early precincts. We don't know if these are Republican-inclined precincts in the southern part of the state, more liberal or Democratic-inclined precincts in the northern part of the state. We will continue to watch, bring you more numbers as they become available.

Just ahead, there's word now of a White House rift. Is the relationship between President Bush and Vice President Cheney eroding? I will speak with a prominent journalist here in Washington whose sources tell him, the answer is yes.

Plus, as we have been noting, results coming in from Virginia. They're coming into THE SITUATION ROOM. We will show you what we're learning about that potential bellwether gubernatorial race.

Stay with us in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: A very important race in Virginia. We're getting some results coming in, the gubernatorial contest right now. With 3 percent of the voting now in and about 100,000 ballots have been officially counted, the Democrat Tim Kaine, the Lieutenant Governor, has 53 percent of the vote. The Republican Jerry Kilgore 46 percent of the vote. We're watching this contest closely. As we get new numbers we'll bring them to you right away.

In the meantime, let's move on to another story we're watching.

Vice President Dick Cheney has been a key adviser, even a mentor to President Bush while wielding considerable power of his own. But is that close partnership coming apart? Is Cheney losing his influence, especially given the CIA leak scandal?

Tom DeFrank is the Washington bureau chief of the "New York Daily News." He's a veteran White House reporter and good friend. Thanks for joining us, Tom.

TOM DEFRANK, NEW YORK DAILY NEWS: Glad to be here, Wolf.

BLITZER: You are so well plugged in to all of these sources in Washington. And I remember when you covered the first President Bush, you were very close to him. What are you hearing?

DEFRANK: What I'm hearing, Wolf, is that the relationship between the president and the vice president has eroded somewhat. And actually it's not new. This has been going on a couple of years. It really has its roots in the run-up to the Iraq war. But this distance is the word, is the phrase that I keep hearing -- this distance seems to be accelerating in the wake of the CIA leak investigation.

BLITZER: So the president is expressing, at least privately to some people, his disappointment in the vice president, the advice he's been getting from the vice president?

DEFRANK: I haven't heard disappointment, but I've heard concerns, a feeling that some of the advice he got before Iraq was not -- didn't turn out to be the way he had hoped it would be. I mean, let's face it. The vice president and others' blueprint for how the war was going to work out didn't exactly -- let's put it this way. It was a little optimistic, to put it mildly.

And I think the president has had some concerns ever since. It's hard to really get into this because there's only two people who really and truly know the truth about this. But the president, I think, has talked to friends and old friends, advisers, family members and others. And it's clear that there is some distance now in the relationship and there has been some distance for a fair amount of time.

BLITZER: The article that was in the "New Yorker" magazine quoting the former national security adviser to the first President Bush, General Brent Scowcroft, that clearly showed that he has lost confidence in a lot of these guys surrounding the president of the United States. And he even spoke of the confidence he's lost in the vice president. I think that Brent Scowcroft has some gravitas with these people.

DEFRANK: Not only gravitas, but he's very close, as you well know, with President Bush 41.

BLITZER: The first President Bush, yes.

DEFRANK: President Bush 41, and my theory is General Scowcroft wouldn't have gone so public if he didn't feel very strongly about this and if perhaps he didn't have a little holy water sprinkled on it by other Bushes.

BLITZER: You write in the "New York Daily News" today, "the vice president's office will never be quite as independent from the White House as it has been. That will end. Cheney never operated without a degree of presidential license, but there are people around who cannot believe some of the advice Bush has been given." Elaborate a little bit on that.

DEFRANK: Well, it's hard to elaborate because of the requirement you go into sources and methods. But I will say, Wolf, that it all goes back to Iraq. Some of the political advice the president got from the vice president about how Iraq would spin out has become troublesome and it has created a bit of a wedge in the relationship.

There are other issues as well. Some people think that maybe he should not have gone so hard on Social Security. There's a disagreement on the staff about that. But basically it's a question of some of the advice. The president feels like maybe some of the advice he got was not the way he had hoped it would turn out to be.

BLITZER: Before I let you go, I've got to ask you about this new disclosure today, a new CIA leak investigation -- this time the "Washington Post" story on those secret CIA-run prisons in Eastern Europe.

Trent Lott, the Republican senator from Mississippi now suggesting well maybe that original information came from a Republican sort of strategy session where the vice president, Dick Cheney, was briefing Republican senators on these secret prisons and all of a sudden word began to trickle out.

DEFRANK: Well, there is a feeling that Senator Lott may be speaking the truth here. Remember, he's still unhappy about being unseated as majority leader a couple years ago. I think he is into heavy payback mode. But you get a feeling these are the kind of things that happen to presidents and their staffs when things aren't going so well. I mean, it's just -- it's symptomatic of the situation that the president finds himself in these days.

BLITZER: Are we going to see another formal inquiry, the reporter from the "Washington Post" now dragged before a grand jury and asked who her sources were and this banner headline on the front page of the "Washington Post"?

DEFRANK: Yes, that was a great story, and anything is possible. But I sure hope not. I would just as soon not have reporters part of the story.

BLITZER: Tom DeFrank, a reporter for the "New York Daily News." There was the front page of the "Daily News." Right now "Dick Waning. Exclusive How Cheney's Clout with Prez is Fading in Wake of White House Scandals." Tom, thanks very much.

DEFRANK: Thank you, Wolf.

BLITZER: Let's get some new numbers coming that are coming in from Virginia right now. An important gubernatorial contest with 4 percent of the ballots now in, more than 100,000 votes. The Democratic candidate, Kaine, with 52 percent; the Republican, Kilgore, with 46 percent. Very early. Very early in the reporting. We'll continue to watch this Virginia contest throughout this hour as the polls close in Virginia.

Up next -- he's not on the ballot but he has almost as much at stake as if he were. We'll show you why California Governor Arnold Schwarzenegger has so much riding on the election out in California.

Plus, it is the most popular car in the country among thieves. Are you driving America's most frequently stolen automobile? You want to know what it is? Stay with us in THE SITUATION ROOM. You'll find out.

(COMMERCIAL BREAK)

BLITZER: We're continuing to get results in from Virginia where the polls have closed. We'll update you on where that race stands, an important race.

First, though, let's go to CNN's Zain Verjee once again at the CNN Center in Atlanta with a quick check of some business stories we're following tonight. Zain?

VERJEE: Wolf, the Honda Civic is the most popular car in America among thieves, according to the National Insurance Crime Bureau. That's partly because the Civic is also popular with buyers, so there are just more of them around to steal. Other models at the top of the list in 2004 include the Toyota Camry, the Honda Accord, the Dodge Caravan, as well as the Chevrolet full-size C/K Pick-up.

Infinity Broadcasting says it expects Howard Stern to be back tomorrow. The company wouldn't let Stern do his program today after he spent a lot of time yesterday promoting his impending departure to satellite radio. The spokesman for Stern called it - quote -- "an act of desperation by men who are losing their once in a lifetime."

U.S. stock markets slid today as a leading home builder gave a gloomy forecast about the real estate sector. Now, that helped to bring the Dow Jones Industrial Average down more than 46 points, and the S&P 500 index was down more than 4 points. And the tech-heavy NASDAQ fell down more than 6 points.

Wolf, back to you.

BLITZER: Thanks very much, Zain. We'll check back with you later.

There are some new developments coming in right now in that horrible school shooting in Tennessee that's left one person dead. CNN's David Mattingly is on the scene for us now. He's joining us with more. What have you picked up, David?

DAVID MATTINGLY, CNN CORRESPONDENT: Wolf, authorities are still trying to get a solid grasp of what happened here, but they say they have confirmed that a 15-year-old student is in custody after witnesses say he open fired with a small caliber handgun, killing one assistant principal, wounding another assistant principal, and wounding the school's principal as well.

We cannot give you his identity or show you his face since he's a minor and is not yet charged with a crime. We can tell you, however, that authorities tonight are telling us that there still seemed to be a struggle going on even as the authorities got here at the school. Administrators were first, confronted him with the gunfire. We are told possibly a teacher here at the school was responsible for finally subduing this student.

This student had to receive medical attention with a gunshot wound to the hand, we're told. Exactly how that happened, though, authorities are unable to tell us at this hour.

This investigation is going to go on all night long and probably into tomorrow. The school is out for the rest of the week. Everyone just trying to get a grasp and put their mind around what happened here. This is a small community, everyone finding it very difficult to articulate exactly how they feel about what they saw.

BLITZER: David, thank you very much. David Mattingly, reporting for us from Tennessee.

We're getting some new numbers coming in, once again, from Virginia. Now with almost 10 percent of the vote in, take a look at this. The Republican Jerry Kilgore up at 64 percent; The Democrat, Tim Kaine, with 35 percent. Almost 300,000 votes, nearly 300,000 votes now. Shifting back and forth.

But once again, this is very, very early in the evening. Sometimes very southern Virginia Republican districts are coming in at once. Some of the more liberal or Democratic districts from Northern Virginia, the suburbs of Washington, D.C., might be coming in separately. But these are numbers now, with more than 9 percent of the precincts counted, 35 percent for Kaine, the Democrat; 64 percent for Kilgore. We'll continue to watch these numbers for you.

Also, we're watching another very important story, a second CIA leak investigation, this one into that "Washington Post" story of a few days ago, reporting secret CIA-run prisons in Eastern and Central Europe. We'll tell you what's going on in that front. Our senior legal analyst, Jeff Toobin, standing by.

Stay with us.

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BLITZER: Welcome back. We're watching some of the results coming in. The polls have not yet closed in New Jersey or in New York City, but they have closed in Virginia. Let's take a look now, with 16 percent of the precincts reporting, the Republican, Jerry Kilgore, with 56 percent of the vote; the Democrat, Tim Kaine, the lieutenant governor, with 43 percent of the vote. Still very, very early in the evening. Only 16 percent of the vote in. But a little bit of a lead beginning to emerge for the Republican, Jerry Kilgore.

Candy Crowley is our senior political correspondent, watching all of this with us. Candy, this Virginia contest is very interesting and very important on many fronts.

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: It's the key race tonight, that on a national level, both parties will be looking at donors, candidates and party leaders, for a couple of reasons. First of all, because it's a Southern state. It is Bush country. It is being led by a very popular outgoing Democratic Governor Mark Warner, who would like to be president. So we have this sort of very popular Democratic governor at a time when George Bush's polls in Virginia are not very good. It's a Southern state. Democrats, as you know, lust for a Southern state every once in a while. On the national level, it was pretty much all Republican territory in the last couple of elections. So there is that.

There is the fact that everyone will be looking at this race for any sign of -- any toxicity by the president. He came in on election eve to campaign on behalf of the Republican. A lot of people said, look, what does he have to lose? Things were going so wrong. He was going to get blamed tonight anyway if the Republican loses; he might as well go in and see if he can get a little credit if the Republican wins. It's been very close up to now. So there are national implications here.

In general, what both parties are looking for is a little bit of running room to go into the midterms. And by that I mean that if there is a bragging right for Democrats, if a Democrat should win in Virginia, this is a signal. This is recruitment season for '06 for people who might want to run for the Congress or the House or the Senate.

So if a Democrat can win in a red state, albeit -- I'm sorry -- yes, in a Republican state -- this would be very good for Democrats in terms of recruitment and donors, they could say, we've got the momentum.

On the other hand, it could give President Bush quite a boost if indeed the Republicans should pull it out.

BLITZER: Candy Crowley, thanks very much. And even as you were speaking, we got some new numbers. Let's check it out. With 20 percent of the precincts now reporting, the Republican, Jerry Kilgore, still leading with 55 percent of the vote; Tim Kaine, the Democrat, lieutenant governor, with 43 percent of the vote. About half a million votes have now been counted, 20 percent of the ballots in. We'll continue to watch that.

Our Internet reporter, Abbi Tatton, is following today's elections online. Abbi, what are you finding?

ABBI TATTON, CNN INTERNET CORRESPONDENT: Wolf, viewers can check out the results as they come in online in the different races. We're about 10 minutes away now from the polls closing in New Jersey. This is the site to be looking at, the state Division of Elections site. That race for governor between Jon Corzine and Doug Forrester, those are their official campaign sites tonight.

In New York, an hour later, at 9:00 p.m. Eastern, this is the site to be looking for, for results in the mayoral race there.

Virginia, the polls have already closed. Their Web site there, the Virginia State Board of Election Web site is now being constantly updated as the results come in. This is the page to be looking at in the race for governor. It takes a little while to get on to it because so many people are looking at it right now, but when you do get onto this site, it is being updated with real-time results, every three minutes.

Wolf.

BLITZER: Thank you very much. Abbi, we'll get back to you with more information.

That's check out what's happening on PAULA ZAHN NOW. That's coming up at the top of the hour. Paula's standing by with a preview. Paula?

PAULA ZAHN, CNN ANCHOR: Hi, Wolf, thanks so much. At the top of the hour, we're going to have the very latest on that breaking news story out of Tennessee. We have a crew that's just arriving at the high school where a student allegedly hid a gun under a napkin, open fired on school officials, killing an assistant principal, seriously injuring two other principals.

Also, a bizarre disorder that has driven perfectly normal looking people to lock themselves away for years at a time, even contemplate suicide because of what they think they see in the mirror. And Wolf, the most astonishing thing about it, it has nothing to do with the way they look in reality. You'll meet some perfectly attractive people who, when they look at themselves in the mirror, see monsters.

BLITZER: Oh, my God.

ZAHN: Yes, it's very sad.

BLITZER: All right, we'll watch it. Very sad indeed, Paula. Thank you very much. We'll watch PAULA ZAHN NOW. That's coming up at the top of the hour.

Let's get back to our top story right now. The Republican Congressional Leadership calling for a probe into the possible leak of classified information about secret prisons for terror suspects.

Our senior legal analyst Jeff Toobin is joining us on the phone now with more. The CIA, Jeff, has formally referred this matter to the Justice Department for yet another criminal investigation. This is very, very serious business on many, many different levels.

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: It certainly is. It is very much reminiscent of what happened with the investigation of the CIA leak related to Joseph Wilson and Valerie Plame. That investigation also began with the CIA request to the Justice Department for a criminal investigation and it led ultimately to the indictment of Lewis Libby, the vice president's chief of staff.

This one, at least the Republicans seem to think, may lead to a Democratic source for this story. But these investigations are unpredictable. They often don't reveal anything and if it proceeds, I don't think anyone will know how it will go.

BLITZER: Here is the front page of the "Washington Post". I'll put it up, I'll show it. I'm holding it right here, Jeff -- the front page of the "Washington Post" from last Wednesday, November 2: "CIA Holds Terror Suspects in Secret Prisons". The byline, Dana Priest, one of their national security correspondents. Are we about to see her and others dragged before a grand jury, once again, to try to find out who her sources were?

TOOBIN: Well, I think that is the precedent that Patrick Fitzgerald, the prosecutor in the other CIA leak case has established, that the first place you look for a source of a case in a leak investigation, is the reporter. And as many people remember, Judith Miller of the "New York Times" went to prison for 85 days to protect her source. She ultimately got a release from her source. Matt Cooper, the "TIME" Magazine reporter, nearly went to jail.

Reporters had been somewhat off-limits when is it came to subpoenas from prosecutors for the past few years. Not as a legal matter, but just as a matter of discretion on the part of prosecutors. But I think the Fitzgerald precedent establishes that reporters have no special privilege. They have no right to refuse to participate in this investigation. So if this new leak investigation turns into a criminal investigation, it would seem that Dana Priest of the "Washington Post" would be witness number one.

BLITZER: Very quickly, Jeff, because we're almost out of time. The attorney general, Alberto Gonzales, used to be the White House counsel. Does he, like his predecessor, John Ashcroft, have to recuse himself now from this investigation? And a special counsel come in to lead this investigation?

TOOBIN: Almost certainly the answer to that is yes. He almost certainly would have to be a special counsel, which means the cycle in the Fitzgerald case may be repeated in that respect as well, because he was the special counsel appointed because of a conflict of interest.

BLITZER: Jeffrey Toobin, thank you very much.

Potential nightmare all around. We'll watch this story, a very important story. A second -- a second CIA leak investigation beginning.

Still ahead here in THE SITUATION ROOM, new numbers coming in from that critical Virginia governor's race. We'll share those numbers with you.

Plus, how important is it if the president and the vice president aren't getting along as well as they used to? Jack Cafferty's been looking through your e-mail. He'll join us next.

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BLITZER: Jack Cafferty has been going through your e-mail on the question for this hour. Jack, still in New York. And he's joining us live, Jack?

CAFFERTY: A piece in the Daily News today, Tom DeFrank wrote a story suggesting the bloom may be off the rose in the relationship between President Bush and Vice President Dick Cheney.

Mr. DeFrank says that Cheney may have lost some clout, although he remain a valued counselor to the president. Administration officials said any suggestion like that is categorically false. The question we're asking is how significant would a rift between the president and vice president be?

Granville in Morgantown, West Virginia: "A rift between the president and vice president with Bush coming out on top might suggest Bush really is in charge. That would surprise a lot of people. Of course, Karl Rove might engineer just that. If Cheney resigned, it would allow the appointment of someone whom the cabal would likely position for 2008."

Jim in San Jose, California: "For almost any previous presidency, a rift would not have meant much. But for this one, it could be very dangerous, as it appears the vice president is running his own underground government."

Michelle in Jensen Beach, Florida, writes: "I personally feel that Bush should hang Cheney out to dry, for a variety of reasons including Halliburton misconduct, Scooter Libby's indictment and the news of a possible CIA leak coming from Cheney's office. That is one of the few things I think Bush could do to salvage any credibility that his office has left."

Patrick in Cary, Illinois: "Thump, thump, thump, thump, thump, thump. What's that noise, Jack? It's the sound of Dick Cheney being thrown under the bus by George Bush. Talk about transparent. In the face of diving poll numbers, the White House leaks a story that maybe the president and vice president are at odds over the vice president's dogged support of the Iraq war."

And Christopher writes from El Paso, Texas: "As long as Vice President Cheney doesn't cut off the president's allowance, a rift between them doesn't worry me one bit."

BLITZER: All right, Jack. Thanks very much.

Let's go back to Virginia for one final time before we're off the air, here. The latest numbers we're getting in, 27 percent of the precincts reporting. The Democrat, Tim Kaine. He is ahead, 51 percent to Jerry Kilgore, the Republican, with 47 percent. More than a quarter of the vote now in.

It's going back and forth, as expected. Don't be surprised if it changes throughout the night. We'll have all those numbers for you as they become available.

That's very much for joining us. Don't forget, we're here in THE SITUATION ROOM, every weekday, both 4-to-6 p.m. Eastern, as well as 7 p.m. Eastern.

I'm Wolf Blitzer. PAULA ZAHN NOW, starts right now.

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