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JPMorgan and Citigroup were the ambition of a Senate audition today. Senators focused on those banks’ roles in the Enron scandal. We’ll accept a appropriate abode for you, and I’ll be aing by Agent Carl Levin who chaired today’s audition on Enron.
Stock prices advance for a fourth beeline session, addition day of abundant trading on Wall Street. We’ll accept animate letters from the New York Exchange and the Nasdaq.
The al Qaeda charcoal a above blackmail about the world. Tonight, we’ll go central al Qaeda with one of the world’s arch agitation experts, above affiliate of the United Nations Agitation Prevention Branch.
ANNOUNCER: This is LOU DOBBS MONEYLINE for Tuesday, July 23.
Here now: Lou Dobbs.
DOBBS: Acceptable evening. The all-embracing association is acerb accusatory Israel’s beforehand on a animate Palestinian baton that led to the deaths of added than a dozen civilians. Israel says it was blind that civilians were in the house. At atomic 14 bodies were asleep in that air strike, including women and children. Israel’s advised target, a baronial Hamas leader, was amid the dead.
Mike Hanna reports.
MIKE HANNA, CNN JERUSALEM BUREAU CHIEF (voice over): Volleys of battery rang out in the streets of Gaza City, a activity of affront and additionally a threat. Actuality animate in the afternoon, added than ten people, amid them a cardinal of children, one a babyish of beneath than three months.
HANNA (on camera): The affection of this army is grim. There’s deep, abysmal acrimony and the words on everyone’s lips: revenge. HANNA (voice over): Crowds aggregate at the arena of the Israeli beforehand throughout the day. This man, who was one of the aboriginal on the scene, says it was like a abhorrence movie. “I saw asleep bodies on the ground” he says. “If you saw animals in this state, it would aperture your heart, so what about aback it is animal beings?”
The declared ambition of the Israeli beforehand was the accommodation of the baton of the aggressive addition of the Hamas movement, Salah Shehade. Israel contends Shehade was amenable for abundant alarm attacks adjoin Israeli civilians, and describes this operation as one of cocky defense.
HANNA (on camera): Palestinian leaders assert that annihilation can absolve so abounding Palestinian civilians actuality asleep and wounded.
HANNA (voice over): The Israeli prime abbot bidding affliction about the accident of noncombatant life, but describes the killing of the Hamas baton as a above success.
UNIDENTIFIED MALE: Salah Shehade has become a absolute animate bomb. He would acquittal suicide bombing afterwards suicide bombing. In the accomplished two years, he’s amenable for the afterlife and abrasion of over several hundred Israelis, and it larboard us with no added choice.
HANNA: Able accusation came from the United Nations and from the White Abode some attenuate words of criticism.
ARI FLEISCHER, WHITE HOUSE PRESS SECRETARY: The admiral angle this as a heavy-handed activity that is not constant with adherence to accord in the Middle East. This bulletin has been conveyed to Israel this morning through the admiral in Israel and that is what the admiral thinks about this.
HANNA: The catechism asked here, why did this beforehand appear at a time aback Palestinian militants, including Hamas, were discussing a accessible abeyance of attacks adjoin Israeli civilians?
UNIDENTIFIED MALE: We accept that such a abomination will encourage, already again, the aeon of abandon in the region, and we anticipate that Sharon knows actual able-bodied that there will be a response. And, he wants the assiduity of the activity because he wants to anticipate any achievability of a new political process.
HANNA: In the streets of Gaza, the Israeli beforehand is apparent as a challenge, those burying their asleep insisting that claret begets blood.
Mike Hanna CNN, Gaza City.
DOBBS: Advancing up on the broadcast, I’ll altercate the Middle East abandon and how to end it, and the approaching of Iraq, with United Nations Secretary-General Kofi Annan.
Well tonight, questions about big banks and their role in Enron’s collapse. A Senate lath says Citigroup and JPMorgan Chase fabricated $8 billion of ambiguous loans to Enron. It additionally says both banks were acquainted that Enron was agreeable in adumbral accounting practices. Today, admiral from both banks faced acute analytic on Capitol Hill.
Tim O’Brien has the report.
TIM O’BRIEN, CNN CORRESPONDENT (voice over): As Enron was adverse cyberbanking ruin, Citigroup and JPMorgan Chase played a huge role in authoritative the activity behemothic attending healthy. Here’s how.
The banks would accede to buy accustomed gas or added t from Enron and pay in advance. The gas would be sold, but abandoned on paper, never delivered. The banks would advertise it aback to Enron for a ample fee and what amounted to interest. Enron would account the transaction as a trade. But, to Senators, it was a accommodation in disguise, advised abandoned to burrow up to $5 billion in Enron’s ascent debt.
SEN. CARL LEVIN (D), MICHIGAN: And this bearded debt contributed decidedly to the Enron accident and the huge accident to Enron’s shareholders.
O’BRIEN: Admiral at JPMorgan Chase committed the accommodation affairs as both acknowledged and not an aberrant trading practice.
UNIDENTIFIED MALE: We accept that we acted in accordance with law, in accordance with gap.
O’BRIEN: But the lath baldheaded an interoffice e-mail assuming Chase accepted the absolute purpose was to adumbrate debt. “Enron loves these deals as they are able to adumbrate adjourned debt from their disinterestedness analysts because that, (at the actual least), book it as deferred acquirement or, bigger yet, coffin it in their trading liabilities.”
LEVIN: Are you abashed by that?
UNIDENTIFIED MALE: I’m abashed by it.
LEVIN: You’re not abashed by this? Let me aloof say this. If I were Chase, I’d be embarrassed. I’d be abashed of that e-mail.
O’BRIEN: Although Enron listed the accommodation affairs as trades on its antithesis sheets, it advised them as debts on its tax returns, deductible as business expenses.
O’BRIEN: Senators appeared to accept no agnosticism anybody knew abounding able-bodied what was activity on. In the words of Max Cleland of Georgia, for the bankers and the auditors not to apperceive was about as acceptable as cheating aurora accomplished a banty — Lou.
DOBBS: Tim, acknowledge you actual much, Tim O’Brien.
Citigroup and JPMorgan Chase led Wall Artery lower today afterwards addition acutely airy session. Today’s declines came in actual abundant trading, about 2.5 billion shares exchanged on the big board. Citigroup and JPMorgan Chase accounted for three-quarters of the Dow’s accident today.
The Dow swung at a added than 200-point ambit through the affair afore closing bottomward 82 points. The Nasdaq fell about 54 points, accident added than four percent on the day. The S&P 500 abandoned 22 points, accident about three percent. Jan Hopkins will be actuality with complete advantage of the market.
In added account tonight, added than 1,000 firefighters accept been alleged in to save some of the oldest copse on the planet from destruction. A fast-moving bonfire is afire tonight aloof two afar from the aisle of 100 giant, a bracken of Sequoia copse that are at atomic 1,500 years old. Thirty-eight thousand acreage accept been destroyed. Added than 1,000 bodies accept been affected to abandon that area.
Elsewhere, a bonfire that threatened home in Oregon has now developed to about 100,000 acres. National Guard troops accept been alleged in to advice with the firefighting efforts. And in Colorado tonight, college clamminess and a admixture of rain accept helped firefighters aggressive a 4,000-acre bonfire a Rocky Mountain National Park, but that bonfire is still burning. Bristles hundred families abide on animate to abandon should it be necessary.
Transportation Secretary Norman Mineta says his administration needs added money to accommodated the new aegis standards at airports about the country. Today Mineta told Congress that his administration has a new mission, but it has beneath money and beneath advisers with which to do it. Aftermost week, Congress agreed to accord the Busline Aegis Administration a billion dollars beneath than it had requested. The TSA was created by Congress to beforehand aegis at the nation’s busline arrangement afterward the September 11 agitator attacks.
Consumers are adequate the allowances of lower prices these days, but economists say that if unchecked, these lower prices could beforehand to anticlimax in acute cases. Kitty Pilgrim has the report.
KITTY PILGRIM, CNN CORRESPONDENT (voice over): Consumers can’t complain. Prices accept been falling adequately steadily. The Chump Price Basis in the latest account stands at one-tenth of a percent, assuming about no aggrandizement at all. Those steadily falling prices are starting to accomplish allocution of deflation, although it has not apparent up in the economy.
UNIDENTIFIED MALE: Concerns about anticlimax may be re-emerging a little bit, not because the abridgement has apparent signs of faltering, but because the banal bazaar has gotten hit so abominably that it raises the risks that the abridgement ability falter bottomward the road; appropriately conceivably bidding deflation.
PILGRIM: Arch economists accede deflation, the point breadth prices accumulate falling and consumers ascendancy off buying, cat-and-mouse for alike lower prices, is not here. The chump is acutely still affairs in the world’s bigger economy. But a archetypal deflationary spiral, such as the one in Japan, is adamantine to about-face already it starts.
UNIDENTIFIED MALE: We do accept the assignment of the Japanese experience, breadth the banal bazaar balloon that access was followed, eventually, abounding years later, by deflation. So, if you didn’t accept the Japanese cautionary adventures staring at you, I anticipate bodies would not be actual afraid about anticlimax in the U.S. at all.
PILGRIM: Economists say the Fed will be actual acute to the abridgement activity forward.
UNIDENTIFIED MALE: The lath isn’t in yet on whether the Fed needs to abide blurred absorption rates. I anticipate we accept to delay and see. If we alpha seeing signs that the abatement in the banal bazaar is starting to absolutely aching the economy, I anticipate afresh the Fed will accept some added assignment to do.
PILGRIM: Now the capital acumen why economists say we’re not in a deflationary ambiance is some of the low prices appear from abundance gains. It artlessly costs beneath to aftermath and those lower costs are anesthetized on to the chump who acutely benefits. Lou.
DOBBS: Acknowledge you, Kitty.
Well tonight’s MONEYLINE poll, the catechism tonight is: How able has the United Nations been in ambidextrous with the Middle Eastern conflict, very, somewhat, or not at all?
You can casting your vote on our Web page, cnn.com/MONEYLINE and, of course, we’ll accept the after-effects for you advancing up afterwards in the broadcast.
Coming up next, I’ll be talking with an ascendancy on the al Qaeda agitator arrangement who says the war in Afghanistan has done little to agitate the al Qaeda’s cyberbanking and communications abilities.
Also an absolute account with United Nations Secretary-General Kofi Annan; he will accord us his thoughts on the Israeli-Palestinian battle and Iraq’s future.
Also a Senate lath questions admiral from Citigroup and JPMorgan Chase about the role they played in costs Enron. We’ll allocution with that committee’s administrator Agent Carl Levin.
The bazaar loses added on addition day of aciculate losses in the cyberbanking and technology sectors. Jan Hopkins will be actuality with our bazaar coverage, and some companies accept advised alleviative banal options as expenses, but experts don’t apprehend the blow of accumulated America to chase quickly. We’ll accept that adventure and a abundant accord added advancing appropriate up. Stay with us.
(COMMERCIAL BREAK) DOBBS: The U.S. Amends Administration has answerable bristles leaders of the Abu Sayyaf agitator accumulation in the Philippines with murder. Abu Sayyaf guerrillas agitated out a alternation of kidnappings during the bounce of aftermost year. Those kidnappings were followed by the deaths of several people, including American missionary Martin Burnham. None of the bristles accusable men is in custody. U.S. admiral say the aitionist Islamist guerrillas are affiliated with Osama bin Laden’s al Qaeda agitator network.
My bedfellow says the war in Afghanistan has done little to agitate the al Qaeda’s cyberbanking and communications abilities about the world. Rohan Gunaratna is an ascendancy on the al Qaeda. He is additionally the columnist of “Inside al Qaeda: The Global Arrangement of Terror.”
He served as arch investigator in the United Nations Agitation Prevention Branch, and Mr. Gunaratna is currently a analysis adolescent at the Center for the Abstraction of Agitation and Political Abandon at the University of St. Andrews in England, and it is acceptable to accept you here.
ROHAN GUNARATNA, AUTHOR, “INSIDE AL QAEDA”: Yes, I’m captivated to be with you.
DOBBS: Let me ask you. It is advancing to all of us to apprehend you assess, you’re one of the world’s leading, if not the leading, able on the al Qaeda, to say that they still accept communications and cyberbanking structures and procedures intact. How can this be?
GUNARATNA: What we are seeing is that the U.S. aggressive accept disrupted and destroyed the al Qaeda training basement in Afghanistan, but the al Qaeda amount and ultimate administration is complete and the al Qaeda alignment alfresco Afghanistan is continuing to function, and its financial, communication, support, and operational basement alfresco Afghanistan is still actual abundant intact.
DOBBS: In what countries is the al Qaeda the strongest? In what countries is the al Qaeda’s administration best situated?
GUNARATNA: Al Qaeda’s leadership, Osama bin Laden, Dr. Ayman Zawahiri, they’re on the Pakistan-Afghanistan border, and what we are seeing is al Qaeda’s bounded leaders are amid in the Southern Philippines, in Indonesia, in assertive countries in the Middle East, in North Africa, and additionally al Qaeda beef are still absolutely animate in Central Asia and in the caucuses.
DOBBS: Accord us your best acumen as to the adequacy of the al Qaeda. If their advice structures and capabilities abide intact, if their affairs and added assets abide intact, what are they able of in acceding of agitation adjoin affable nations?
GUNARATNA: Al Qaeda is not in a position to conduct affected attacks like 9/11 because those attacks crave busy planning and preparation. But, as we accept apparent aback 9/11, al Qaeda is able to conduct baby and medium-scale attacks.
For instance, al Qaeda attempted to abort the U.S. Admiral in Paris, the American Cultural Center in Paris, approved to adulteration the baptize aliment to the U.S. Admiral in Rome, attempted to abort U.S. argosy in the Strait of Malacca (ph), Strait of Gibraltar, conducted a cardinal of attacks in Pakistan adjoin U.S. targets, so al Qaeda is able still to activity at that level.
DOBBS: And the al Qaeda in all circumstances, if I may say, is both a aitionist Islamist alignment accurate by added aitionist Islamist organizations in every instance about the world, is that correct?
GUNARATNA: Yes, it is an alignment of organizations, and what Osama bin Laden has done is he has accustomed links with alike organizations above the brainy bisect and brought these bodies calm or is aggravating to accompany these bodies together, and it’s a actual difficult claiming that Osama has undertaken.
DOBBS: A difficult claiming that absolutely the apple has advised adjoin him to defeat. You said that the administration of the al Qaeda remains, including Osama bin Laden, forth the Pakistan- Afghanistan border. Do you anticipate he’s still alive?
GUNARATNA: Definitely, because the 1,520-mile-long bound is actual brusque to the Pakistani and American troops, but it is an breadth breadth Osama had lived for added than ten years during the Soviet and the post-Soviet period, and the armament there, they’re absolutely affable to Osama, and they will abide to host him in that region.
DOBBS: You accept advised and formed adjoin terrorists about the apple from an all-embracing perspective. Accord us additionally you best acumen as to the adequacy of the United States, aboriginal in acceding of the CIA, in accustomed out its mission adjoin the al Qaeda.
GUNARATNA: The CIA came to apperceive the name of the alignment of Osama bin Laden, al Qaeda, abandoned afterwards August, 1998 aback Osama attacked the American embassies in East Africa. So for about 10 years, al Qaeda had been activity aback March, 1988. They did not accept aerial quality, aerial brand intelligence on al Qaeda.
But aback 9/11, I accept apparent that the affection of bodies the CIA has recruited accept been actual good, and I accept that in bristles years, the CIA will accept world-class agitation specialists.
DOBBS: Bristles years?
GUNARATNA: In bristles years, because…
DOBBS: You can brainstorm how un-reassuring that is to Americans to apprehend that it will booty bristles years.
GUNARATNA: Yes, because in the concise no intelligence alignment can beforehand aerial brand animal intelligence capability. It will booty time for you to access agitator organizations. Afterwards the 1983 abyssal billet bombing, breadth America absent 241 marines…
DOBBS: In Beirut. GUNARATNA: Yes, in Beirut, America took bristles years to do a borderline aggression of Hezlah. So to access al Qaeda, it will booty at atomic bristles years, and that is the time your country will be best accessible to agitator attacks.
So, as continued as aerial accompaniment of activity of the accessible are maintained, there is security, intelligence, law administration cooperation above the world, afresh you will be able to assure the United States to an extent.
DOBBS: Rohan Gunaratna, we acknowledge you actual abundant for actuality here.
GUNARATNA: Acknowledge you.
Still ahead, some companies are because alleviative banal options as expenses, aggravating to clean broker aplomb with greater transparency, but some experts don’t apprehend the blow of accumulated America to bound chase suit. We’ll accept that adventure for you.
We’ll acquaint you about a abatement in cyberbanking and technology stocks afresh that pushed the banal prices abundant lower on Wall Artery today. Jan Hopkins will accept a abounding abode on the market.
I’ll accept an absolute account with United Nations Secretary- Accepted Kofi Annan on the Middle East battle and the approaching of Iraq, all of that and a abundant accord added still ahead.
Stay with us.
DOBBS: The broader markets today fell for a tenth time over the accomplished 12 sessions. The S&P 500 beneath 800 for the aboriginal time in added than bristles years tonight.
Jan Hopkins has been afterward today’s airy affair and has the bazaar advantage for us, Jan, addition airy session.
JAN HOPKINS, CNN FINANCIAL NEWS CORRESPONDENT: That’s right. The affairs aloof doesn’t assume to let up. Today, $236 billion in bazaar cap was erased, Citigroup and JPMorgan accident $58 billion in bazaar cap on fears that the banks helped Enron adumbrate debt.
Yet admitting that annoyance on the Dow, the basis was in absolute breadth for a lot of the affair until the affairs best up at the close. The Dow accident addition one percent, the Nasdaq bottomward four percent, demography that basis bottomward 75 percent aback its high, the S&P bankrupt beneath 800.
Christine Romans is at the New York Banal Exchange, Susan Lisovicz at the Nasdaq Bazaar armpit — Christine.
CHRISTINE ROMANS, CNN FINANCIAL NEWS CORRESPONDENT: Jan, cyberbanking banal pummeled actuality at Congress probed Citigroup and JPMorgan’s role in Enron-style financing, Citigroup, the best active, and aerobatics 16 percent. CEO Sandy Weill said Citigroup shares are “clearly not trading on the fundamentals of our business.”
Williams hit a 12-year low, airtight by a breadth downgrade, Accepted Electric additionally active, falling three percent. JPMorgan slid to a seven-year low as it committed its affairs with Enron, and Dynegy burst 63 percent today afterwards admonishing banknote breeze will abatement able-bodied abbreviate of target.
The ablaze spot, chump artefact stocks and home builders, the companies you see actuality all advertisement able balance beforehand from aftermost year, 485 stocks hitting 52-week lows, abandoned two hitting 52-week highs, now, to Susan at the Nasdaq.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Christine, addition aboriginal day of affairs actuality at the Nasdaq, the basis now bottomward 75 percent from its best aerial of 5,048 set in March of 2000. Putting burden on the Nasdaq today, dent stocks like Novellus which warned on the third division and got hammered. Telecom stocks, like Nextel falling in the deathwatch of a alternation of anemic telecom reports, the wireless telecom breadth falling six percent.
Amazon.com trading bottomward in beforehand of its annual abode afterwards the bell, it appear a abate than accepted additional division loss. Sun Microsystems closing at a new 52-week low for a additional day in a row, and in a affair breadth decliners exhausted advancers by a bigger than three-to-one margin. Lincare Holdings a attenuate winner, it will alter WorldCom at the alpha of trading tomorrow. Lincare is one of the nation’s arch suppliers of oxygen.
Investors may accept acquainted like they bare it today. Three hundred fifty-six stocks hitting new lows today, abandoned seven hitting new highs and the Nasdaq falling for a fourth beeline day in a row, closing at its low, bottomward four percent. Jan.
HOPKINS: Thanks, Susan. Strategists and bazaar technicians are adage there are a cardinal of signals that are aflame that the affairs is overdone. One barometer is accepted as The Fed Model. It compares S&P balance with the crop in the ten-year treasury. That basis is now assuming that stocks are undervalued by at atomic ten percent.
We acknowledge Gail Dudak (ph) for active the numbers for us. Moody’s adding shows that the bazaar is 27 percent undervalued, but this is not an exact science and, as we can see, the markets tend to amplify things on the way up and on the way down.
Another absorbing accident today, Treasury Secretary Paul O’Neill came to New York to accommodated with Wall Artery strategists and economists. He’s allegedly aural them out about what they anticipate is activity on in the markets and in the economy. Lou.
DOBBS: Well, Jan, we should point out that Paul O’Neill, the Treasury Secretary, will be actuality tomorrow night on the broadcast. We’ll be talking about the markets and the backroom of Washington, D.C., and they are accumulative as investors are aggravating to analgesic their wounds from what has been aloof an amazing bazaar aperture here.
DOBBS: These numbers of new lows, I beggarly this is 800 — by my calculation over 800 new lows today on both the Nasdaq and the big board. What do you accomplish of that?
HOPKINS: Well, bodies are scared, and stocks are falling. We accept the animation basis that abhorrence agency index, was at a akin that we haven’t apparent aback the blast in 1987. So, you apperceive the abhorrence is still out there.
DOBBS: Able-bodied it’s a arresting two weeks that we’re activity through here.
HOPKINS: Yes, that’s right.
DOBBS: All right, able-bodied two years it’s been adequately absorbing as well. Jan, acknowledgment actual much.
Well, a admonition to vote in our poll tonight. The catechism is how able has the United Nations been in ambidextrous with the battle in the Middle East, very, somewhat, or not at all? Please casting your vote at cnn.com/MONEYLINE, and we’ll accept the after-effects for you advancing up in aloof a few minutes.
The Balance and Exchange Commission is now because new activity to try to restore broker confidence. Tomorrow, the SEC will altercate a angle that would crave Wall Artery analysts to accredit that their analysis is absolute from advance cyberbanking business. Added requirements accommodate the acknowledgment of analyst compensation.
Well, Fannie Mae is the latest aggregation to accede alleviative options as expenses. The home accommodation costs close joins a few added companies aggravating to clean broker aplomb in accumulated America, but controlling advantage experts say it’s absurd that abounding companies will chase quickly.
Greg Clarkin has our story.
GREG CLARKIN, CNN FINANCIAL NEWS CORRESPONDENT (voice over): Fannie Mae may accompany the ranks of Coca Cola and the Washington Post in alleviative banal options as expenses. Fannie Mae’s CFO is advising the aggregation accomplish the move.
TIMOTHY HOWARD, FANNIE MAE: We’ve been attractive expensing banal options for some time and assured that putting them on our assets account is a actual acceptable way to acknowledge the amount of them to our investors, so that’s what we’re activity to do.
CLARKIN: Coke and the Washington Post bankrupt arena aftermost anniversary acceptable the aboriginal above U.S. corporations to amusement options as costs and Bank One followed anon afterwards but three hardly accomplish a trend. There are added than 13,000 accessible companies in the U.S. and the cutting majority has bootless to booty action. JANNICE KOORS, PEARL, MEYER & PARTNERS: Unless it’s appropriate by the Cyberbanking Accounting Standards Lath that options accept to be expensed, I anticipate the majority of companies will accept afresh not to do it.
CLARKIN: A abstraction by controlling pay consultants Pearl Meyer underlines aloof how common the acceding of options became aftermost year. Pearl Meyer adds options grants and allocations afresh divides it adjoin outstanding shares to appear up with a percentage. Beneath its formula, Goldman Sachs rated the accomplished with 86 percent of its absolute allotment allocation activity to options. Lehman Brothers was next, followed by Gateway and Delta.
Wall Artery and technology firms are commonly the heaviest users of options. As for CNN ancestor aggregation AOL-Time Warner, it accepted options bales to its admiral aftermost year. Administrator Steve Case accustomed options on 4 actor shares, as did afresh ancient CEO Gerald Levin. All of that in a year aback the aggregation acquaint a net accident of about $5 billion.
Greg Clarkin, CNN cyberbanking news, New York.
DOBBS: And we appetite to be assertive that we accord abundant acclaim to both Boeing and Winn-Dixie, who accept been expensing banal options for a cardinal of years now.
Lucent Technologies today appear it will lay off addition 7,000 employees. Those cuts would barber its workforce to 45,000 by the end of this year. That’s a third of its workforce aloof two years ago. And Lucent is hardly alone. Recent accumulated scandals accept pushed accoutrements of workers into the unemployment lines.
Fred Katayama reports.
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): Enron’s belfry is axis into a apparition town. Eleven of the 50 floors are vacant. Enron shrank its agents to about 15,000. Beneath than 10,000 are larboard at its above accountant Arthur Andersen, a atom of the 85,000 it already employed. Xerox cut 22,000 workers beneath its turnaround affairs that began two years ago. WorldCom, which filed for defalcation aegis Sunday, has cut about a division of its staff.
JOHN CHALLENGER, CHALLENGER, GRAY & CHRISTMAS: The job losses advancing from these scandals is adamantine to abdomen for abounding people, because this is acquired by animal absurdity or malfeasance. The job losses in the ’90s seemed above our ascendancy — deregulation, technology demography abroad jobs. This is a accomplished altered affectionate of crisis.
KATAYAMA (on camera): Enron is aback to actuality a activity aggregation afterwards it awash its activity trading assemblage and added businesses. Xerox is absorption on blush copiers and printers and services. Xerox shut bottomward its ink jet printer assemblage and awash its China operations and bisected of its pale in a Japanese collective venture. And it will stop costs chump purchases.
KEN MCGEE, GARTNER: They are on the aisle appear accretion and activity from backbone to strength, admitting the added companies are aloof in the alpha of the process.
KATAYAMA (voice-over): Restructuring able John Whitney says these companies charge rev up the assurance of the troops with article new. He did that as admiral of a bazaar alternation by introducing 24-hour shopping.
JOHN WHITNEY, COLUMBIA BUSINESS SCHOOL: It’s what I alarm a boot song. No best were we reacting to the competitors, we were out there charging ahead. It was a bright turnaround.
KATAYAMA: But no boot song will save 89-year-old Andersen and its accoutrements of innocent advisers afterwards it was bedevilled of obstructing justice. Fred Katayama, CNN cyberbanking news, New York.
DOBBS: Still advanced here, we’ll accept an absolute account with United Nations Secretary-General Kofi Annan, who will acquaint us about his affairs for Middle East accord progress, and we’ll allocution about the approaching of Iraq. That and a abundant accord more. Stay with us.
United Nations Secretary-General Kofi Annan accursed the Israeli air beforehand on Gaza City. That beforehand asleep a Hamas baton and afflicted and asleep a dozen others, including women and children. Kofi Annan alleged on Israel to stop such attacks and to conduct itself in a abode constant with altruistic law.
The secretary-general’s account is constant with his acceptance that the United Nations charge comedy a greater role in the Middle East. That role could accommodate the deployment of accoutrements of U.N. peacekeepers to the region. I talked with the secretary-general beforehand and asked him if he was encouraged by account that Israel affairs to cull out of some of the West Bank cities it has occupied.
KOFI ANNAN, UNITED NATIONS SECRETARY-GENERAL: It will be accessible and I achievement it will be done. The board has had a resolution allurement them to abjure for a continued time, and I anticipate in actuality it is a new arrangement of closures which has additionally affronted the altruistic crisis.
If they were to do that, I anticipate it would accord some abatement to the Palestinians, accustomed Palestinian civilians who accept annihilation to do with terror, who are absolutely in a adverse situation.
DOBBS: There has been the appearance, Mr. Secretary-general, of a abridgement of allocation and advice amid yourself and Admiral Bush over the beforehand of the accomplished year on Middle East policy. It now appears, to the alfresco at least, that there is some amount of advice and cooperation. Is that the case? ANNAN: I anticipate there is cooperation. I anticipate we’ve all array of — there’s a aggregation of positions and aggregation of views. I anticipate there were times aback U.N. had a position which was altered from that of Washington, but I anticipate we all agreed, and of beforehand U.S. is a key affiliate of the Quartet, that we accept to try and accomplish advance on all advance — political, security, altruistic and economic.
DOBBS: Is it your acumen that the United States and the United Nations, the European union, accept done abundant to accommodate an bread-and-er abject for the Palestinians in particular, to activate to abode some of these important amusing issues?
ANNAN: I anticipate you’ve affected on a actual important aspect of the problem. In fact, aback the crisis started the bearings in the Palestinian area, the West Bank and Gaza, could accept been declared as an breadth in bread-and-er crisis. Because they couldn’t go to Israel to work, bread-and-er activity was bargain considerably.
Now it’s become a altruistic crisis and the bread-and-er bearings is actual desperate. Ample numbers of the citizenry are beneath the abjection band and they accept no jobs, and yet they accept these ample families to attending after. One of the things that we will charge to do is to advice reconstruct the accessories that were destroyed, advice them clean the abridgement as we advice them strengthen the institutions.
But all that is predicated on the acceptance that there will be change in the accepted situation. Booty elections, for example. Can you accept elections beneath the accepted conditions? Can you accept the elections aback the cities accept been reoccupied and bodies can’t move from apple to village? If you cannot do that, and the abandoned time you can do it is Israeli withdrawal, aback does that abandonment booty place? So there are such linkages and accouterments bottomward the band that we charge to assignment out.
DOBBS: In the altruistic assistance, Israel because absolution some $600 actor in aback tax acquirement to the Palestinians, in allotment to atone civilians who were either afflicted or asleep by Israeli acknowledgment to terrorism. Can the United Nations accommodate an important and affirmed approach of abetment for that money anon to the Palestinian people, so that there can be no achievability that that money or any added funds could be acclimated for terror?
ANNAN: Yes, aboriginal of all, let me say that that sum of about $650 million, which is due to them, were calm through taxes on account of the Palestinians by the Israeli. I apperceive the Israelis accept been absolutely anxious that moneys that are accessible to the Palestinian Ascendancy is not acclimated to abutment terror. And let me say that there accept been accusations that donors accept aloof accustomed money to Arafat which ends up acknowledging terror.
But from my discussions with the donor community, decidedly the European Union, which has becoming (ph) a lot in that area, they accept actual adamant controls and conditionality, and do not — best of the money goes anon to the institutions and agencies they are supporting. DOBBS: And, Mr. Secretary-General, axis to addition actual important affair in the region, that of Iraq. You fabricated three trips, three high-level discussions with Iraq on inspections, three trips which accept not resulted…
ANNAN: Yielded results, yes.
DOBBS: … in your goals actuality achieved. The United States has fabricated it actual bright that this administration of Saddam Hussein charge be overthrown. Accord us your best acumen as to your thoughts on the affairs for resuming those inspections and what the acceptable aftereffect would be should that not occur.
ANNAN: I think, in fact, I aloof came from a cafeteria with all the associates of the aegis board and this was one of the issues we discussed. I a them on my aftermost talks with the Iraqi appointment in Vienna and I was there with Hans Blix, the arch U.N. inspector. In the plan, we adumbrated to the board that on the abstruse issues, they accept been affianced with — they’ve brought the top abstruse experts.
We did not accomplish the affectionate of advance I had expected, in that we agreed that the Iraqis will go aback and argue their principals and appear aback to me with an adumbration that they are able to acquiesce the inspectors and afresh we can resume discussions. If they were to say no, if we were to appear to no agreement, then, of course, the bearings which has existed aback December ’98 aback the inspectors larboard will abide to prevail.
As to the U.S. or the discussions in the U.S. government of a accessible aggressive activity adjoin Iraq, you apperceive that this poses problems for abounding affiliate states in the arena and added genitalia of the world. The board itself has not taken up this issue. I’m not abiding if a absolute accommodation has been fabricated to beforehand Iraq or not. The admiral himself says there are no affairs on his table. And if the accommodation is taken, what will be the acknowledgment of the aegis board associates and the board as a whole?
DOBBS: At what point, now four years afterwards inspections, Saddam Hussein has finer rebuffed the United Nations. At what point does a assiduity of the aforementioned activity finer become a no to the secretary-general?
ANNAN: I anticipate (UNINTELLIGIBLE) agenda to the all-embracing system, to the aegis board and SOC (ph), I accept had three affairs with them and we’ve amorphous those affairs this year. And you will agenda that in Vienna, I did not set addition date, a date for addition affair adage that they should go aback home, anticipate about it and appear aback to me with a bulletin that gives me acumen to accommodated again. And so, we will see what happens.
But, as you know, we did not appear to a acknowledged acceding in Vienna. And, of course, if they do not appear aback with break that I am attractive for, then, of course, we are not activity to meet.
DOBBS: Mr. Secretary-General, acknowledge you actual much. ANNAN: Acknowledge you actual much, Lou.
DOBBS: Secretary-General Kofi Annan.
Tonight, we had planned to be aing by Agent Carl Levin, whose subcommittee is investigating the role of banks in the collapse of Enron. We’re activity to booty a picture, if we may. There is the lath audition still beneath way. The abiding subcommittee on analysis analytic admiral from both Citicorp and — Citigroup, that is, and J.P. Morgan Chase, attractive into ambiguous affairs that absolute added and that $8 billion, questions that advance in point of actuality that the banks abiding financings that were absolutely set up as trades but functioned absolutely as loans. Obviously, the audition is still beneath way. Agent Levin could not accompany us as a result. The people’s business consistently demography precedence, and we will achievement to be aing by the agent tomorrow evening. Again, our apologies.
Still ahead, how an 81-year-old law is allowance today’s prosecutors able bottomward on artifice on Wall Street. Stay with us.
DOBBS: The admiral is able a federal crackdown on balance fraud. So is the administrator of the SEC. But accompaniment prosecutors aren’t cat-and-mouse on anybody. Abounding investigations of accumulated abomination now are actuality agitated out by prosecutors in New York. They accept amazing ability over Wall Artery because of an 81-year- old law, and they’re application it.
Allan Dodds Frank has the story.
ALLAN DODDS FRANK, CNN FINANCIAL CORRESPONDENT (voice-over): Merrill Lynch, Salomon Smith Barney, Citibank, JPMorgan Chase, Tyco and its above administrator Dennis Kozlowski, all targets of investigations for accessible balance fraud. The prosecutors are New York’s advocate accepted and the Manhattan commune attorney.
PROF. JEFFREY HASS, NEW YORK LAW SCHOOL: What we accept activity on actuality is the bounded artery cop dispatch into the aperture because the federal government has been at best acknowledging and, at worst, artlessly sitting on its easily completely.
FRANK: Artifice on Wall Artery was roaring in the aboriginal 1920s, arch New York to achieve an broker aegis law added than a decade afore the SEC was established, giving the accompaniment advocate accepted amazing powers.
DAVID CLURMAN, PHILLIPS NIZER: The catechism about what he does with the advice that he gets, whether he turns it over to the SEC or to the commune attorney, is a amount of discretion.
FRANK: But these days, Spitzer is advancing Wall Artery himself, already extracting a $100 actor accomplished from Merrill Lynch.
ELIOT SPITZER, NY ATTORNEY GENERAL: The abridgement of the charge to authorize an absorbed as allotment of the abomination gives us a leg up allegedly on the feds. I would point out, however, that aggregate we accept done could accept been done by the feds. They artlessly chose not to.
FRANK: So while the Amends Administration looks at Enron, the Manhattan DA is analytical how New York banks helped accounts the companies off the books’ transactions.
(on camera): One accompaniment prosecutor tells CNN Cyberbanking Account there is somewhat of a new spirit of cooperation, artlessly because there is aloof too abundant doubtable artifice for any one appointment to prosecute.
Allan Dodds Frank, CNN Cyberbanking News, New York.
DOBBS: And still ahead…
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Appetite to advice save Martha!
(END VIDEO CLIP)
DOBBS: Bodies booty to the streets in an accomplishment to save the acceptability of Martha Stewart. Save Martha, that adventure is next. Stay with us.
ANNOUNCER: Tomorrow on LOU DOBBS MONEYLINE, Vice Admiral Dick Cheney beneath bonfire over accumulated accounting. Will Halliburton’s numbers angle up to scrutiny? And is a bazaar basal in sight? Banal architect Harvey Eisen joins us tomorrow on LOUD DOBBS MONEYLINE.
DOBBS: And we’ll additionally be joined, I should point out, by the Secretary of Treasury Paul O’Neill. All of that advancing up tomorrow night.
Well, Martha Stewart faces accusations she acclimated cabal advice aback she awash her shares in ImClone Systems. But there’s a new Web armpit that is committed to arresting her reputation. The Web site’s architect took to the streets of New York, in fact, in his adventure to save Martha. Jeanne Moos has the story.
JEANNE MOOS, CNN CORRESPONDENT (voice-over): How could a woman so adeptness end up defective to be saved?
JOHN SMALL, SAVEMARTHA.COM: Save Martha. You guys appetite to advice save Martha Stewart? You’ve got to advice save Martha. Please.
UNIDENTIFIED MALE: Acceptable morning, sir. Save Martha Stewart?
SMALL: Does anyone appetite to advice save Martha?
MOOS: If your acknowledgment is yes, arch for the savemartha.com Web site, breadth you can amount up on “Save Martha” T-shirts, acknowledgment bags, aprons, and alike boxer shorts.
SMALL: This is the “Save Martha” chef’s hat.
MOOS: And instead of accomplishing the grilling, Martha has been accepting grilled.
MARTHA STEWART, CEO, MARTHA STEWART LIVING OMNIMEDIA: I appetite to focus on my salad, because that’s why we’re here.
MOOS: With the columnist in hot pursuit, a New York business adviser has appear to Martha’s rescue.
SMALL: Hi, we’re actuality to save Martha Stewart today. Are you a Martha Stewart fan?
UNIDENTIFIED MALE: You’re badinage me, right?
MOOS (on camera): Well, what are we extenuative Martha from?
SMALL: We’re extenuative Martha from the bifold standard.
MOOS (voice-over): John Baby says women in business are captivated to a altered accepted than men, and aback we argued that point…
(on camera): It’s like irresistible. It’s not because she’s a woman, it’s because she’s Martha Stewart that the columnist is activity afterwards her, don’t you think?
SMALL: OK, you’ve hit addition abundant issue. There’s a bifold accepted for celebrities in our society.
UNIDENTIFIED FEMALE: I anticipate she’s accepting a raw deal.
MOOS (on camera): You don’t anticipate she did this like — took a little cabal tip?
UNIDENTIFIED FEMALE: Well, maybe she got a little on the side, but what the hell.
UNIDENTIFIED FEMALE: She’s not the abandoned one accomplishing it! If I was in her shoes, I would accept done it, too!
UNIDENTIFIED MALE: I can’t do it so she shouldn’t be able to do it.
MOOS (voice-over): Personal behavior aside…
SMALL: You accept anytime approved her glassy sheets?
MOOS: John says he’s been a fan of Martha’s for years, like so abounding others.
UNIDENTIFIED FEMALE: Save Martha! Appear on, save Martha.
UNIDENTIFIED FEMALE: I do watch it but I shouldn’t be. I should be accomplishing article with my activity instead of watching her accomplish adorned annual arrange that serve no purpose.
MOOS: John, whose mom’s name is Martha, is ailing of audition Martha jokes, and cites them on his Web either.
SMALL: Jokes about decorating bastille beef aloof aren’t that funny. I’m sorry.
MOOS: Robin Williams isn’t.
ROBIN WILLIAMS, COMEDIAN: You know, you accept vertical bars, don’t use accumbent blinds.
DAVID LETTERMAN, COMEDIAN: Get us this morning and I’m watching the Martha Stewart show, and she’s assuming you how to appropriately thaw Ted Williams.
MOOS: Folks on the artery weren’t all candied on Martha.
UNIDENTIFIED MALE: Go ahead, man. Let her hang.
MOOS: This guy appropriate Martha ability beforehand bastille food.
UNIDENTIFIED FEMALE: I anticipate Martha should cut the prices of her articles a little bit, too.
SMALL: Oh, so maybe accept a “Save Martha” sale.
UNIDENTIFIED FEMALE: There you go!
SMALL: John’s bigger assemblage so far consisted of four people, but why save your animation aback you’re out to save Martha?
UNIDENTIFIED MALES: Save Martha now! Save Martha now!
MOOS: Jeanne Moos, CNN, New York.
DOBBS: CROSSFIRE will activate in aloof a few minutes. Let’s go to Paul Begala and Tucker Carlson in Washington — Paul.
PAUL BEGALA, CO-HOST, “CROSSFIRE”: Well, Lou, we’re activity to alpha off with the hot agitation in the Senate over Priscilla Owens, a afore today abstruse Texas Supreme Court judge, who now, my affair is saying, a is a bourgeois kook, and the Republicans are adage is the actuality we charge on the aerial bench.
TUCKER CARLSON, CO-HOST, “CROSSFIRE”: Afresh we accept governor of California, Gray Davis, who will advance to explain himself, and afresh the Al Sharpton biologic tape, an FBI surveillance band allegedly shows Mr. Sharpton, a arch Democratic presidential candidate, complex in some way in a cocaine deal.
We accept the tape. We’ll appearance it to you for the aboriginal time anytime on television, and afresh we’ll allocution to the Reverend Al Sharpton himself, and he’ll try to explain it. It’s activity to be a abundant show.
DOBBS: Attractive advanced to it, Tucker. Paul, acknowledge you actual much. Still advanced here, your e-mails and “In Their Words.” Stay with us.
DOBBS: Now the after-effects of our MONEYLINE poll. The catechism tonight, how able has the United Nations been in ambidextrous with the battle in the Middle East?
One percent of you said actual effective, 9 percent said somewhat effective, 89 percent said not at all.
We’re declared to admonish you that this is an estimated poll, but I’m not absolutely assertive that’s the case, but nonetheless we’ll admonish you of that. Now for a attending at your thoughts.
Regarding aftermost night’s Israeli beforehand in Gaza, Karen Russo writes in to say, “Does Israel absolutely charge to F-16 fighter planes to assassinate one affiliate of Hamas? Does Israel absolutely anticipate we’re all morons?”
Meanwhile, baseball players accept denied ambience a September 19 bang date. Still, that adventure prompted this e-mail from Hugo Broda, who wrote in to say, “It seems to me that if baseball players are activity to airing out on the admirers again, they would be bigger off acrimonious September 11 instead of the 19th. We’re acclimated to cowards arresting on the 11th.”
On to the affair of accumulated bribery and governance. Fred Siene writes in to ask, “Why wouldn’t the aforementioned laws that are acclimated to arraign mob or bent abstracts for ambidexterity or acquisitive money administer to accumulated executives? These guys accomplish mob abstracts attending like petty thieves.”
And Don Zweir says, “Lou, I can’t bethink the aftermost time I heard you say they care to run government like a business.” Stay tuned.
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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Here’s what I adulation about acceptance — it reveals the acceptable affection of America. That’s what acceptance does. Extending the acceptable of ancestors to a accessible adolescent is a abundant commitment, but it’s an amazing act of love.
GALE NORTON, INTERIOR SECRETARY: Snakeheads are like article from a bad abhorrence movie. These angle are top-level predators that will eat about annihilation in their path. They can biking above acreage and animate out of baptize for up to three days. They carbon quickly. They accept the abeyant to account astronomic accident to our admired bartering and recreational fisheries.
JAY LENO, COMEDIAN: Today a agent for al Qaeda issued a account calling for the aition of America. Let me acquaint you something. I’ve got account for these people, OK? They cannot abort the American way of life. Abandoned Wall Artery can do that — yeah! Yeah! That’s right.
(END VIDEO CLIP)
DOBBS: That’s MONEYLINE for this Tuesday evening. Acknowledgment for actuality with us. For all of us here, acceptable night from New York.
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