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CNN Saturday Morning News

Courthouse Shooter Brian Nichols Expected to be Sentenced to Life in Prison Today; President Bush Might Step in to Help Auto Industry; Illinois to Decide Governor Blagojevich's Fate; Ice Storm Cripples Part of Northeast; First Lady Laura Bush Talks About Her Husband's Legacy

Aired December 13, 2008 - 09:00   ET

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

BETTY NGUYEN, CNN, ANCHOR: Hello, everybody, from the CNN Center in Atlanta, I'm Betty Nguyen. This is CNN SATURDAY MORNING.
T.J. HOLMES, CNN, ANCHOR: Hello to you all. I'm T.J. Holmes. Only got two weekends left, this being one of them to get that Christmas shopping done.

NGUYEN: Don't remind me. There's so much to do.

HOLMES: I'm easy to shop for. Don't worry. Just spend a lot, you will be fine. So, we're going to be talking about Christmas shopping, talk a lot about money, also the auto bailout. A lot of things about the economy.

NGUYEN: Yes, what's next with that?

Also, speaking of what's next, the legacy of the Bush administration, how will history judge this presidency? I take that question to First Lady Laura Bush.

HOLMES: Well, we want to start here, something going on right now, happening live. I believe we do have this picture if we can get that up. A courtroom here in Atlanta, not far from where we're sitting. We are going to learn the fate of courthouse shooter Brian Nichols. This is a story a lot of people will remember.

NGUYEN: Yes. You might recall that he was convicted of killing four people in a 2005 rampage. Nichols' sentencing hearing going on right now in a downtown courtroom. Here's what we know so far. Yesterday, Nichols was spared the death penalty after the jury was deadlocked. And in Georgia, death sentence does require a unanimous jury decision. Nichols is expected to be sentenced to life in prison today and the judge is deciding whether he'll ever be eligible for parole.

HOLMES: Well, they went to Congress begging, on their knees. Please, help us out. Give us billions to bail us out. Well, it turns out they might not need Congress' help anyway to get the money. The president could be stepping in to help out this country's auto industry.

Beautiful, live picture this morning of the White House. The president is saying that it's critical the industry does not fail. He's looking at the possibility of using that bailout money that was for Wall Street, you know, that $700 billion bailout, using some of that to fund the auto bailout.

Now, the Senate Thursday night rejected a $14 billion bailout loan for the industry. General Motors and Chrysler both say they are close to bankruptcy. They say they could fold in a matter of weeks if they do not get a loan. GM also planning to cut 1/3 of its production and temporarily close 21 factories.

Our Kate Bolduan on Capitol Hill has been all over this story for a while now. Kate, Republicans did not want this to happen. There are not with their president on this one, but you know after all that, we saw a few weeks ago, the big three going up there, begging for that money, maybe they were going to the wrong place. Maybe they should have just knocked on the front door of 1600 Pennsylvania Avenue.

KATE BOLDUAN, CNN CORRESPONDENT: It's hard to get to that door but maybe they should have tried. The ball is squarely back in the White House's court here, T.J.. Two senior administration officials tell CNN the Bush White House is leaving the door open to tapping TARP funds to help American automakers, possibly this weekend.

A senior White House official tells me this morning they're working on it, saying the White House is gathering and reviewing information and data about the automakers' true financial situation and what their near-term future really is.

Now, this is a significant change from the administration's previous position that TARP money is only meant for the financial industry, not the auto industry. White House spokesperson Dana Perino said yesterday that auto companies may need their help now because, "a precipitous collapse of this industry would have a severe impact on our economy and it would be irresponsible to further weaken and destabilize our economy at this time."

This is the stance the president of the auto workers union applauds. Let's listen in.

(BEGIN VIDEO CLIP)

RON GETTELFINGER, UAW PRESIDENT: The UAW calls on Secretary of the Treasury Paulson or the Federal Reserve to use their authority to prevent the imminent collapse of the automakers and the devastating consequences that would follow.

(END VIDEO CLIP)

BOLDUAN: Now, some of what the White House is looking into here is exactly how much money the automakers need and what strings will be attached or they will attach if they choose to give them this money. This is something that Senate Republicans are calling for now since we know that the Senate and Congress could not come together to agree. Republicans saying that without restrictions set by the White House on the big three, they will be throwing good money on top of bad. And so they say the strings must be attached in order for this to work, T.J.. HOLMES: All right. One more thing here quickly if we can. Is there money left? The $350 billion of that $700 billion or that's what's been spent up. The other 350 billion can't be used unless Congress says it's OK. There is about $15 billion we understand left out of that first half. So is there even enough there to give to the auto industry?

BOLDUAN: That is a really good question and something that people -- yesterday, when the White House made that a statement, a lot of people were asking that very same question. How much money is left before you have to go back to Congress and ask for more?

Well, we hear is there is about $15 billion. How that would work, if all of that would go to the automakers or if they would divvy it up, and give them a very short-term loan. I mean, so many questions still to answer. But as we know, T.J., as you said, there's a lot less available today than there was when they passed that $700 billion bailout. So that's a question the White House is going to have to consider.

HOLMES: All right. A lot of questions to consider. Kate Bolduan, considering them all and keeping her calculator close, trying to keep up with these numbers. Kate, we appreciate you as always. And we'll get an assessment of the bailout chances and help for the auto industry. In about 10 minutes, we will be joined by a writer from "Fortune" Magazine.

NGUYEN: And getting back to business in Illinois, but first they have to figure out the governor's fate. The state attorney general wants the Illinois Supreme Court to declare Governor Rod Blagojevich unfit for office. State lawmakers have their own plan. They can start impeachment proceedings as early as Monday.

Meanwhile, the governor's chief of staff has resigned. And a source close to the investigation tells us that the president-elect's chief of staff, Rahm Emanuel, has been told that he is not a target of the probe.

Our own Drew Griffin caught up with the governor yesterday as he came out of his attorney's office, and, Drew got an exclusive comment on the record. Take a listen.

(BEGIN VIDEO CLIP)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Drew Griffin with CNN. Can you say anything to the people of the state of Illinois, sir? Do you have anything to say?

GOV. ROD BLAGOJEVICH (D), ILLINOIS: I will at the appropriate time. Absolutely.

GRIFFIN: Are you going to resign, sir?

BLAGOJEVICH: I'll have a lot to say at the appropriate time.

GRIFFIN: Governor, the authorities right in their petition that criminal complaint? Did you do what they say you did? Governor? Just 30 seconds for anybody in the state of Illinois?

(END VIDEO CLIP)

NGUYEN: Drew Griffin trying there. And our special investigation unit all over this story, as you know. Drew brings us more details about the case in a live report next hour.

HOLMES: Well, somebody who wasn't as tough to get a comment from as the governor was Jesse Jackson, Jr., also known these days as Senate candidate number five. Yes, or candidate number five at least was named in that criminal complaint. However, we understand that Jesse Jackson, Jr., not a target of the investigation.

The "Chicago Tribune" reporting that two businessmen, however, with ties to Jackson and Blagojevich discussed the governor raising at least $1 million in campaign cash in exchange for Jackson getting the Senate seat. According to the "Tribune," that meeting led to a fund- raiser last weekend, attended by Jackson's brother.

Now, Jackson, like I said, is speaking. He talked to our Don Lemon.

(BEGIN VIDEO CLIP)

REP. JESSE JACKSON, JR. (D), ILLINOIS: I had a great name given to me by great parents and I've got a great father who has a great legacy of public service.

DON LEMON, CNN CORRESPONDENT: But --

JACKSON: It's so great -- it's so great that I named my daughter Jessica, and I named my son Jesse. So I'm fighting now for my character, and I'm also fighting for my life.

(END VIDEO CLIP)

HOLMES: Congressman Jackson denies any wrongdoing, but he did meet with Blagojevich on Monday. That was one day before the Feds arrested the governor. You can see more of that interview tonight with Jesse Jackson, Jr., at 10:00 or rather, 11:00 Eastern time in the CNN NEWSROOM with Don Lemon. Again, that's at 11:00 Eastern tonight.

NGUYEN: Another cabinet nomination. This morning we have learned that President-elect Barack Obama has tapped Shaun Donovan to be the Secretary of Housing and Urban Development. Donovan is the former commissioner of Housing Preservation and Development of New York City. Obama says Donovan has the innovative ideas and perspective needed to help with this economic crisis.

HOLMES: Authorities believe they have found the body of a toddler they've been looking for the past several months. They say they are confident now pretty much that it is her. That toddler is Caylee Anthony. She was two years old. The body was found about a half mile from Caylee Anthony's grandparents' house.

The body -- the reason they are confident it might be her is that it had similar characteristics, also a strand of hair was found close -- near that body, had the same color hair. They are still going to wait until they get DNA results to confirm who that body is, who that child is. Caylee Anthony's disappearance sparked national interest when her mother waited a month to report her missing. Investigators say the mother also gave misleading statements to authorities.

Seeing video here of the aftermath after a bomb exploded inside an Oregon bank. Two police officers and a bomb technician were seriously hurt. The bomb was discovered in some bushes outside the bank but went off after police and bomb detectives brought it inside. This morning they are searching for the person responsible for that bomb.

NGUYEN: Severe is right. A nasty ice storm cripples much of the northeast. Leaves more than one million people without power today. It's especially harsh for retailers because this is such a crucial money-making holiday season.

HOLMES: Eight states affected. Here they are. We're going to show them to you. A state of emergency has been declared in Massachusetts as well as New Hampshire. In New Hampshire actually there was a death that was reported related to the storm. Meanwhile, in Maine, they're under a state of emergency as well. A limited state of emergency, they call it.

NGUYEN: All right. So what's the deal today? Are they going to get any relief? Reynolds Wolf is on the case. He joins us now. Boy, do they need it, Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: They really do. I've got good news for you and bad news for you, or rather for them. They're the ones who are dealing with it and in parts of the northeast. I tell you many people, as you mentioned, got millions without power at this time. The ice is not going to be as much of an issue today because we're not expecting any additional precipitation. However, the cold air is still locked in place. You currently have 16 degrees in Albany. 27 in New York City. 30 in Philadelphia. 27 in Boston. 21 in Portland.

However, the storm system that brought all this rough weather to parts of the northeast is now moving out to sea, but out to the west coast we see another storm system that's beginning to develop in the northwest. With that storm system you got a lot of watches and warnings here in effect, you see all the reds and the greens and the whites, those all happen to be your watches, warning and even your advisories.

As we hone in a bit on parts of the northwest, what we're seeing at this point is the potential of blizzard-like conditions, especially in these mountain passes. You know when you think of blizzards you often think of it as just being a snow event. Actually, you can have blizzard conditions with very little snow but just strong winds. Primarily a wind event.

That's something that you're going to be dealing with along parts of 84, along parts of i-5, especially in the high mountain passes of the mountains. Also we're seeing in the mountains, we're going to see some heavy snowfall there. Some places will be seeing up to a foot of snowfall. And again, that's a scene that we're going to be seeing through a good part of the weekend.

We got to wrap it up very quickly. Let's send it right back to the news desk.

NGUYEN: All right. We do, thank you.

So, you know, as we look back over these past eight years, you think of, what, 9/11, the war in Iraq. I mean, so many different things have happened.

HOLMES: Big issues.

NGUYEN: Now we're facing an economic crisis. So, what is the legacy going to be for this Bush presidency? Well, I take that very question to First Lady Laura Bush.

(COMMERCIAL BREAK)

HOLMES: Well, it's not just American workers who are losing jobs in the whole fallout in the U.S. automaker trouble. Sources at General Motors say the company will suspend operations at three of its four plants in Mexico early next year. One of those plants opened in July. The move affects more than 10,000 workers in Mexico.

NGUYEN: Well, out of money, out of time and almost out of options. America's big three automakers are now looking to the Bush administration to steer them away from bankruptcy after the Senate shut down a request for a $14 billion bailout. Here's the question. What's the next turn in what some say might be a dead end road?

Well, we're going to pose that question to this lady right here, Katie Benner of "Fortune" magazine joins me now from New York. All right, Katie. So here's the situation. Auto bailout did not pass. I guess the only hope right now lies with the president. But would that be a real solution?

KATIE BENNER, "FORTUNE" MAGAZINE: Well, that's very difficult because Congress is already very upset with the way the TARP funds have been used. So, in order to you know either tap that funding for the automakers? And then to ask for more, we might see a battle in Congress over whether or not to release more money. There's still some left from the original $350 billion, but we're going to see what happens. Plus, it could open the floodgates and we could see lots and lots of companies start lining up for money if the automakers get money.

NGUYEN: Well, no doubt. I mean, the financial you know companies, the banks, all them lined up, now the auto companies. Who's next? Here's the question. GM says, look, if I don't get this money by the end of this month, we are just going to really fold here. And even if I did get $4 billion by the end of the month, I'm going to need another six by the end of next year. Is this money just a Band- aid for these companies? BENNER: I mean it sounds very familiar, much like with the financial system. And yes, I think it is Band-aid because even if they get the money that would fix their short-term funding problems, we are still dealing with all of the old legacy problems that has been plaguing the automakers for decades. You know, high cost of funding, high labor costs, cars that people don't want to drive, all sorts of things.

NGUYEN: OK. So say they go into the bankruptcy. Say this money doesn't come in time and the big three go into bankruptcy. Could they emerge -- would this be a good thing, a cleansing if you will, could they emerge leaner and meaner?

BENNER: Well some people do make the argument. Now his is an argument that, for example, labor unions would not want to hear. But some people do make the argument that with bankruptcy comes the opportunity to radically restructure in a way that you can't through negotiations. And that had a prepackaged bankruptcy would actually not be that disruptive. People make arguments that people won't buy cars from companies in bankruptcy, but I don't think that's true. I think that companies still operate in bankruptcy all the time.

NGUYEN: So do they need some fundamental restructuring? Because I mean if you look at the numbers, it's being reported that GM has been losing market share what for the past 30 years, Ford for the past 10 years. I mean do they need to take some clues, some advice from the Hondas and Toyotas of the world?

BENNER: Certainly. I mean I think with both their labor cost structure and the cars that they make, they need to start making cars that people actually want to drive. That reflect all sorts of things, all sorts of concerns about energy and efficiency.

NGUYEN: All right. Katie Benner with "Fortune" magazine, thanks for your time today.

BENNER: Thanks.

NGUYEN: T.J.

HOLMES: We will continue along the economic lines here, talking about the recession we are in. These times were more and more people falling behind on their mortgage payments.

Well, CNN's Gerri Willis explains that if you are one of them you need to look into a loan modification to help lower your payments.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi, T.J.. There are a lot of loan modification programs out there for homeowners in trouble, but what is the best way to go about reworking your mortgage? Well, first off, check out the programs.

The FDIC, the Federal Housing Finance Administration and a number of banks, including Bank of America, JPMorgan Chase and Citigroup have all announced loan modification programs. Most of these mortgage modification programs cap payment levels homeowners can afford through lower interest rates, longer repayment schedules or reductions in loan balances.

So, to get help, call your lender's modification department. Remember to keep detailed records of who you talk to and send a letter outlining your situation by certified mail to customer service and the loss mitigation department.

Keep in mind, this is not an easy process. Lenders want to delay taking any loss for as long as possible. In reality, the closer you are to foreclosure, the more attention you receive.

Make sure to investigate government programs, too. You may qualify to refinance into an FHA insured loan through the FHA secure program or there are counseling agencies that might be able to help you even if your lender doesn't. Try hope now AT 888-995-hope or a counselor at the Housing and Urban Development at 800-569-4287.

Coming up on "OPEN HOUSE," a special emergency edition, all about how to keep your home. That's "OPEN HOUSE," 9:30 a.m. Eastern -- T.J.

(END VIDEOTAPE)

HOLMES: All right. We appreciate Gerri Willis as always.

Looking forward to hearing this. This is my first time seeing all of it, you were in New York, interviewing the First Lady.

NGUYEN: Yes.

HOLMES: And we have been hearing a little of it so far. A lot has been said about her husband, people still saying it, some good, some bad, curious to see what she thinks about her husband's legacy.

NGUYEN: Yes, it's all about that legacy. And you know when you think about it, they came in shortly after they began, what we had 9/11 ...

HOLMES: Right after you got in.

NGUYEN: Now ending with this recession that we have been talking about all morning long, for the past how many months now. So, what does the First Lady have to say about that legacy and how they're going to be viewed once they leave the White House? I'll talk to her.

(COMMERCIAL BREAK)

HOLMES: CNN has confirmed Defense Secretary Robert Gates is on an unannounced visit to Iraq. He's there visiting with troops in Balad and plans to talk with U.S. commanders. The trip comes as the United States continues plans for troop withdrawal by 2010.

Also, another unannounced visit, this one being made by British Prime Minister Gordon Brown. You see him there. He's in Afghanistan. He's there at a time when some of his forces are coming under heavy fire. Four British royal marines were killed in separate explosions in a southern province there.

Now, the Prime Minister accused the Taliban of using a 13-year- old child as a suicide bomber. The Taliban spokesperson denies that group ever uses children. He says the Taliban have enough fighters willing and ready to sacrifice their lives.

NGUYEN: Laura Bush's days as First Lady are nearing an end. And it's no doubt than a tumultuous eight years. So how will the Bush legacy go down in history? I took that question to the First Lady when we sat down this week in New York.

(BEGIN VIDEOTAPE)

NGUYEN (voice-over): As history judges this presidency, what do you say to the critics?

LAURA BUSH, FIRST LADY OF THE UNITED STATES: Well, what I say is that what's happened after the last eight years or during the last eight years is that 50 million people have been liberated. The people of Afghanistan have been liberated from the Taliban. The people of Iraq have been limited from the tyranny of Saddam Hussein and it's important for the United States and the international community to stay involved in those countries as they rebuild, especially Afghanistan which is a very poor nation anyway, and it's just been totally decimated.

For the last 30 years, there's been war there, and most of the people of Afghanistan are younger than 30. So, they've never lived in a peaceful country. They're not educated. The girls there were not allowed to go to school. It's going to be very difficult for them to do everything they need to do, to not only build the expensive infrastructure.

Like the roads so they can have trade or get food to different parts of the country or the agriculture that's needed to be able to feed themselves or the infrastructure of laws that we take so for granted in our country in the United States that we're so lucky to have inherited from all the generations before us.

And so, it's going to require a large commitment on the part of the U.S. and the whole international community to work with Afghanistan so they can get out of this spiral of devastation that they've been in for the last 30 years.

NGUYEN: As this presidency began, we faced 9/11. Now it's ending with a financial crisis that's led us into a recession. How have you dealt with this adversity? And how do you want your legacy to be written?

BUSH: One thing that I think kept me encouraged for those eight years was being very aware of what our history is and what the American people are like, and I got to see it everywhere I went in our country. And so I'm encouraged to know that even in an economic downturn that better times will come, just like they have every other time we've had a downturn in our economy. And that the American people are so resilient and so strong and such great workers. That's one thing encouraging about the economy is we know we have the best workforce in the world. And so that's what's kept me encouraged when I lived there, and knowing what other presidents who lived there before us faced, the challenges our country faced, and knowing how our country was able to overcome those challenges. And so I see that now. We'll move on and things will be better.

(END VIDEOTAPE)

NGUYEN: And we're hoping that things will be better, but in the meantime, I did ask Mrs. Bush about having any regrets over these past eight years. It's interesting to see what she has to say about that.

Also, there's a little debate over whether the First Lady should be paid. There has been you know a suggestion out there, and people really come up with their answers to it on whether you know this should be a paid post because some people say, you know, a lot of these women left high-paying jobs to serve as First Lady. Granted, it is a service, but should it be a post because they do have lots of things on their plate and trying to solve many of the world's problems.

HOLMES: Wow. I will keep it zipped for now.

NGUYEN: We will talk about it. Because a lot of people do have some really serious opinions about that. And so, does the First Lady. She answers that question as well.

HOLMES: Stay here.

(COMMERCIAL BREAK)

HOLMES: You know, Christmas tress can be expensive, if you go out there and try to you a real one. Really, up to 100 bucks or so. Well, some troops don't have to worry about that. FedEx and the Spirit Foundation donating 16,000 Christmas trees to military families this year.

NGUYEN: That's great.

HOLMES: They're also sending several thousand overseas to men and women fighting in Iraq and Afghanistan. So, nice to see.

NGUYEN: What a good program, yes.

"OPEN HOUSE" with Gerri Willis starts right now.