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Job Market Moving in Right Direction; Rick Santorum Looks to South Carolina; What Jobs Reports Says About Economy; Where GOP Candidates Stand on Taxes; Awaiting Obama Speech from New CFP; Richard Cordray Appointment Draws Fire from Republicans; Romney Rivals Pick Up Steam Ahead of New Hampshire Primary
Aired January 06, 2012 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: Live from Studio Seven, I'm Suzanne Malveaux.
I want to get you up to speed for this Friday, January 6th.
Well, better than economists expected. That's the bottom line on the December jobs report that was released earlier today. The Labor Department says employers added 200,000 jobs. December was the sixth month in a row where we saw 100,000 jobs or more added. The unemployment rate tipped down slightly to 8.5 percent.
We're going to have more of the numbers and the job market coming up.
And President Obama visiting the new man in charge of protecting your money. He stops by the Consumer Financial Protection Bureau. That is happening this hour. We're going to bring you his remarks live from that event. The President appointed Richard Cordray to head the bureau and it regulates everything from mortgages, to credit cards, to pay day loans.
Now Republicans say that Cordray's appointment is not valid because of the way it was handled. Cordray predicts they're going to come around.
(BEGIN VIDEO CLIP)
RICHARD CORDRAY, DIR., CONSUMER FINANCIAL PROTECTION BUREAU: The congressional leaders, they hear from and they serve the very same people that we're now serving. They hear the stories about people losing their homes, buried in debt that they didn't understand or maybe it wasn't fully explained to them, frauds and scams that occur out there. Our job is to try to make the marketplace work better for consumers. And I think as we begin do that, we will win our way forward.
(END VIDEO CLIP)
SUZANNE MALVEAUX, CNN ANCHOR: A bomb blast ripped through Syria's capital today. State TV reports that 25 people were killed, 46 others wounded. Most of them civilians. The Syrian media are calling it a terrorist suicide attack. Now, the government blamed similar bombings two weeks ago on al Qaeda, but the opposition accuses the government of staging the blasts to back up a claim that it's fighting terrorists.
Iran planning more war games. Its state-run media report another round of military drills are going to take place next month in the Strait of Hormuz.
The most recent exercises ended just this week, and tensions now have been rising over this strategic critical waterway. Iran threatened recently to block the strait if new sanctions harm Iranian oil exports. Now, the government also threatens to take action if a U.S. aircraft carrier goes through the strait.
Italy's Mount Etna roaring back to life. And iReporter Joseph Posten (ph), he caught all of it on video. He said the volcano started rumbling yesterday morning. Once he saw the huge ash cloud, he pulled out the camera. And this eruption reportedly poses no danger to villagers. So far, no flights have been canceled because of that big ash cloud.
Well, New Orleans. City leaders there say teenagers not welcomed in the French Quarter at night. The city council passed a controversial measure to keep those under 17 out of the district after 8:00. Well, critics believe it could lead to police profiling, but supporters say it's about protecting the teenagers.
(BEGIN VIDEO CLIP)
MARJORIE ROSENBERG, FRENCH QUARTER MANAGEMENT DISTRICT: They're children. They should not be in a place that has over 350 alcohol beverage outlets and countless strip clubs.
MARJORIE ESMAN, ACLU: Take a little more time. Get some evidence. Back off. Do it slowly. And then you'll know you've done it right.
(END VIDEO CLIP)
MALVEAUX: More now on the latest signs the job market is moving now in the right direction. Now, the December jobs report was better than most economists predicted. The Labor Department says that employers added 200,000 jobs last month.
Alison Kosik, she is joining us from the New York Stock Exchange.
And Alison, finally some good news here. We're starting the new year realizing the unemployment rate is down just a little bit, more jobs than expected. Overall, is this a good picture? Is it a good sign?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: It is. Suzanne, it is very encouraging, especially when you look at how the trend is going.
Just look at last year, 2011 -- 1.6 million jobs were added last year. And if you want to put it in perspective even more, look how far we've come. In 2008, 2009, we lost eight million jobs, gone, poof. And then we kind of saw jobs start to come back in 2010, but job creation really picked up steam in the second half of 2011.
Other positives happening here. Fewer people are working part time when they want more. So that indicates that they could be finding more full-time work. And as what you said, the 8.5 percent unemployment rate is the lowest in almost three years. Yes, good stuff coming out of this report -- Suzanne.
MALVEAUX: And any sectors in particular in the economy that added those jobs? Where are these jobs coming from?
KOSIK: And this is more good news, because the recovery, when you look deep into this report, it's not just limited to one area. You look at the jobs, they're actually widespread. And it's important to see that, especially when the only major sector that's cutting jobs is the government. It's the only one major sector that cut jobs.
Now, what we did see are big gains in transportation -- 50,000 jobs added there. But watch out for seasonal hiring there. You may see that number dip in the February report because of jobs at, let's say, FedEx and UPS.
Education and health care, we saw gains there. They're typically strong. In a recession, they kind of are recession proof.
In retail, again, watch out for seasonal hiring there.
Manufacturing, automakers are doing pretty well lately. Good sales figures are coming in. They're hiring as well.
And then, of course, leisure and hospitality. Those usually come out on top as well -- Suzanne.
MALVEAUX: And why aren't we seeing a big rally with the markets here? Are they taking this report seriously?
KOSIK: Yes, you are seeing the Dow down 51 points. The reality is, is that this jobs data really didn't blow away expectations.
Sure, things are improving, but as things improve, Suzanne, expectations are rising. And the way the economy is right now, it's kind of taken off its training wheels. It's kind of moving along. But we still haven't moved into the fast lane.
And Wall Street wants to see the economy pick up more speed. Of course, Europe's problems are still front and center. That's really going to limit any big rally that you'd see here, unless, of course, you get that number that just sort of blows away expectations. And we didn't get that number today -- Suzanne.
MALVEAUX: All right. Thank you very much, Alison. Love that sweater, by the way. Good color for you.
KOSIK: Nice color. I was going to say the same thing. (LAUGHTER)
MALVEAUX: We got the memo. All right. Thanks, Alison. Have a good weekend.
KOSIK: Exactly.
MALVEAUX: President Obama bypassed Republicans to appoint a new head of the Consumer Financial Protection Bureau. Well, later this hour the president visits Director Richard Cordray and the other employees at that bureau. We're going to bring you the president's remarks live. That's going to happen around 11:40 Eastern.
Also ahead on our rundown, we're going to tell you exactly what the Consumer Financial Protection Bureau is and what it does.
And then, Republican presidential candidate Rick Santorum sets his sights on South Carolina. We're going to go there live.
Also, illegal immigration, what the candidates are saying about that.
And a police chase. A horrific bus crash caught on tape.
And finally, the human factor. You're going to meet an Olympic swimmer who goes from tragedy to triumph.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I was getting sixth and seventh place, and now I've got an Olympic Gold Medal. So there is hope. You just have to stick with it and keep with it, and that's what I tell kids.
(COMMERCIAL BREAK)
MALVEAUX: Newt Gingrich pushing ahead in New Hampshire right now. Gingrich is in Newport. That's where he's trying to take some of the wind out of the front-runner Mitt Romney's sails, as all the candidates are preparing for the nation's first primary. It's now just four days away.
(BEGIN VIDEO CLIP)
RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: Barrack Obama's view of the past of America is fundamentally different. Therefore, his vision for the future is different. So understand how foundational this election is.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: Everybody has these fights over whether we're going to go right or we're going to go left. Nobody realizes the steering wheel's not connected.
(END VIDEO CLIP) (BEGIN VIDEO CLIP)
JON HUNTSMAN (R), PRESIDENTIAL CANDIDATE: I'm betting that politics is still done the old-fashioned way in this state, and that is you have to be seen, you have to be heard, you have to be felt. So we're going to put it to the test next week.
(END VIDEO CLIP)
MALVEAUX: Rick Santorum may be looking for votes right now in New Hampshire, but he is also keeping an eye on South Carolina. He's hoping a win in a Republican primary there using old-fashioned retail politics -- getting out, shaking hands, showing up at a lot of small events. That strategy almost won him Iowa, but David Mattingly reports that Santorum, he's going to need to talk up his foreign economic policies if he wants to be seen more than just a social conservative candidate.
(BEGIN VIDEOTAPE)
SANTORUM: Game on.
DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): Rick Santorum may have surged on a wave of Evangelical support in Iowa, but now he has to show South Carolina conservatives he's not just a one-state sensation. They're looking for someone who can beat President Obama.
JAMES GUTH, RELIGION EXPERT: That's what they're saying, that's right.
MATTINGLY (on camera): They're looking for a winner.
GUTH: That's exactly right.
MATTINGLY (voice-over): Across the crowded Republican field, conservative positions on social issues like gay marriage and abortion are a given. Southern politics and religion expert James Guth says Santorum can't win South Carolina on faith alone.
(on camera): When it comes to values, he's in.
GUTH: I think he's in good stead with South Carolina Republicans.
MATTINGLY: And then he's got to show them he's got what it takes on the economy.
GUTH: He has got to be more than a one issue or a two-issue candidate.
MATTINGLY: And defense?
GUTH: Defense is very important here.
MATTINGLY (voice-over): South Carolina Evangelicals are more politically diverse than they were in 2008 when they gave one-time Baptist minister Mike Huckabee a strong second place finish. Their priorities changing with the times.
(on camera): What's the number one issue to you?
(voice-over): At the weekly fellowship dinner at the Millbrook Baptist Church in Aiken, I find people ready to vote with their wallets.
UNIDENTIFIED FEMALE: Jobs.
MATTINGLY (on camera): The economy, jobs?
UNIDENTIFIED FEMALE: More people need jobs, more people have got training for jobs that they just can't find.
MATTINGLY (voice-over): But faith is still an issue. And in these matters, Evangelicals tell me they are looking for consistency.
HAL STEVENSON, PALMETTO FAMILY COUNCIL: We divide the lines about who's the most pure sometimes, and so --
MATTINGLY (on camera): What do you mean, purely conservative?
STEVENSON: Well, purely, on the social issues, dependable. So, last time, Huckabee was very dependable. And he was a Baptist pastor.
MATTINGLY: Well, who would be that dependable this go-around?
STEVENSON: It would be Santorum, I believe, at this point.
MATTINGLY (voice-over): It's a start but no guarantee. Santorum still has to prove to South Carolina's Evangelicals and social conservatives he has a plan to govern and the ability to win it all.
(END VIDEOTAPE)
MALVEAUX: David joins us live from Greenville, South Carolina.
David, obviously this state prides itself on picking presidents. And usually they get it right when it comes to the Republicans.
What's their track record?
MATTINGLY: That's right. That is a huge source of pride here.
Since 1980, every single Republican candidate who has won here has gone on to win the nomination of the party. They believe that theirs is the ability to be a king maker in this election. And that's not something they're willing to let go of.
So they're going to be looking very closely not only at the records of all of these candidates, but also at candidates' electability. That's going to play very big here.
MALVEAUX: All right, David. Thanks. We'll be watching closely.
Coming up in the next hour of NEWSROOM, our Wolf Blitzer. He's going to have a snapshot of where the race stands in South Carolina now. Stay tuned for a new poll at the top of the hour.
All this week we've been taking a hard look at where the candidates stand on the issues. Today we look at immigration.
Front-runner Mitt Romney says he wants to finish the security fence along the border with Mexico. And he's against the Dream Act. That's a bill being pushed in Congress that will allow illegal immigrants to go to American colleges and enlist in the military as a path to citizenship. Romney says that will only encourage more people to come here illegally.
Newt Gingrich wants the country to take what he calls 100 percent control of the border with Mexico, using the National Guard to patrol it. And he signed a pledge to finish the border fence, but he also turned heads at a CNN debate when it came time to talk about deportations.
(BEGIN VIDEO CLIP)
GINGRICH: Let's be humane in enforcing the law without giving them citizenship, but by finding a way to create legality so that they are not separated from their families.
(END VIDEO CLIP)
MALVEAUX: Jon Huntsman says he is repulsed by the idea of a fence, but that it is probably necessary. He also said he favors a path to citizenship for those already here illegally, saying sending back people is unrealistic.
Border security also very important to Ron Paul. In fact, he'd like to bring troops home from abroad to patrol the border with Mexico. He voted against the Dream Act and he's against the idea of a fence.
Rick Perry's campaign Web site touts his record on border security, but he's against the idea of building a fence.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: If you build a 30- foot wall from El Paso to Brownsville, the 35-foot ladder business gets real good.
(END VIDEO CLIP)
MALVEAUX: He's attacked the federal version of the Dream Act but defends a similar law in Texas that lets children of illegal immigrants qualify for in-state college tuition.
Rick Santorum says finish the fence, but he also doesn't believe in mass deportations or in giving amnesty to illegal immigrants.
All right. So now's your chance to "Talk Back." Immigration, jobs, national security, these are just some of the issues the candidates have focused on during the debates at campaign stops. We want to know what topic you'd like them to discuss. Today's "Talk Back" question: What is your number one issue and why? Post your responses to my Facebook page at Facebook.com/SuzanneCNN. We're going to air some of those later this hour.
All right. So this story -- corn just might be a super food considering what happened in central Michigan. Police say that corn stalks, right, saved a boy's life after a rollover crash. We're going to explain how.
(COMMERCIAL BREAK)
(NEWSBREAK)
MALVEAUX: It is a whole new year of CNN Heroes. This is a year-round campaign to honor everyday folks who are changing the world. And of course it begins with you. Want you to go to CNNHeroes.com. Give them a chance to expand their life-changing work of helping others. Give them the recognition that they deserve.
Our Anderson Cooper shows you how.
(BEGIN VIDEOTAPE)
ANDERSON COOPER, HOST, "AC 360": Tonight we gather to honor the best that humanity has to offer.
UNIDENTIFIED FEMALE: If you join us, we'll be unstoppable.
COOPER: CNN Heroes is looking for everyday people who are changing the world. How do we find these extraordinary people? Well, with your help.
You can nominate someone right now at CNNHeroes.com. Maybe your hero is defending the planet by protecting the environment --
UNIDENTIFIED FEMALE: People really care, and I'm one of them.
COOPER: -- or helping people overcome obstacles --
UNIDENTIFIED MALE: There will be no man left behind as long as we are this nation.
COOPER: -- or finding a unique approach to solving a problem.
Whatever their cause, nominating a CNN Hero is easy. First go to CNNHeroes.com. Then click "Nominate." We ask for some basic information about you and your nominee.
Then tell us what makes your hero extraordinary.
UNIDENTIFIED MALE: Who likes the pasta?
UNIDENTIFIED GROUP: Me!
COOPER: How are they changing lives for the better?
UNIDENTIFIED FEMALE: You did a great job.
COOPER: It's really important to write from your heart, because it's your words that will make your hero's story stand out.
A couple of tips. Please don't nominate yourself. It's against the rules.
It's not necessary to nominate someone over and over. We read each and every nomination. Really, we do. And be selective. Those honored as CNN Heroes are truly dedicating their lives to severing others.
After you've told us about your hero, click "Submit." It's that simple and that worthwhile.
So nominate someone deserving today.
UNIDENTIFIED MALE: Thank you so much for this incredible honor. This has been the greatest night of my life.
(APPLAUSE)
(END VIDEOTAPE)
MALVEAUX: All right. If you know someone who's making a big difference in the lives of others, just go to CNNHeroes.com and tell us about them. Your words just might change the life of someone who is working every day to help others.
Well, the numbers in for the December jobs report, and they are better than expected. But what does the report really say about the state of the economy? I'm going to talk with one of my favorite economists to get his take on it right after the break.
(COMMERCIAL BREAK)
(NEWSBREAK)
MALVEAUX: Encouraging news now about the job market, the economy. The latest jobs report out today shows hiring picked up in December. The Labor Department says that employers added 200,000 jobs.
December, the sixth month in a row where we saw 100,000 jobs or more added. The unemployment rate ticking down just slightly, 8.5 percent.
Well, joining us to talk about the numbers, what they mean, Danny Boston, professor of economics at Georgia Tech, my favorite economist.
THOMAS "DANNY" BOSTON, PROFESSOR OF ECONOMICS, GEORGIA TECH: Well, thank you.
MALVEAUX: I was going to say one of my favorite. No, my favorite.
BOSTON: There you go. I'm moving up. I'm moving up in the world.
MALVEAUX: We've got some good news here, do we not? Is this significant?
BOSTON: Absolutely. This is significant. And it's significant -- there are the headline numbers. And they're what's happening beneath the headline.
So, the headline is that the rate went down from 8.7 percent to 8.5 percent. All right. And then the jobs, of course, 200,000 jobs.
But more significantly is the fact of where the jobs were being created -- in manufacturing, in construction, transportation. Those industries that were hardest hit by the recession are the industries where jobs are being recovered.
MALVEAUX: So those jobs that were lost are coming back.
What kinds of jobs are those? Are these high-paying jobs, low-paying? Do they have health benefits?
BOSTON: They do. And what you find is that another encouraging number is even the persons who are employed part time but would like to be full-time employed, that number is actually decreasing and we see more full time. So, full-time employees have benefits, retirement benefits, health benefits, and others.
And what's significant about manufacturing, construction, and retail is that two-thirds of all of the jobs that have not been recovered are in those industries. So we get those industries going, we get the economy going again.
MALVEAUX: Is there any difference between people who have been out of work for a long period of time, six months or more, and those who are, say, just graduating from college?
BOSTON: Yes. There is a difference, because what you find is that, first of all, those who have been out of work for -- the benchmark is typically 27 weeks. That number is coming down. So that gets better.
Individuals who are entering the labor market, that means there are more jobs opening up for those individuals. And so the number is getting better all around.
Now, on the downside, right, not a big downside, but one thing that we would like to see is for the size of the labor market to expand, and even at the expense of driving the unemployment rate up, because that means more people are coming into the labor market in search of jobs. So we still want to see that number come up some. That number went down about 50,000.
MALVEAUX: Right.
BOSTON: Not as bad as last month, but it still went down.
MALVEAUX: And it's not even here. The recovery here, the good news is not even for all folks who are out there, because within the African-American population here, you still have double-digit unemployment. We're talking 15 percent. That did not improve.
BOSTON: Right. Right. And, in fact, it actually worsened. So the rising tide is not lifting all boats.
And there is a serious problem with African-American unemployment. It was 15.5 percent last month. This month, it went up to 15.8 percent. But even more importantly is that African-Americans now comprise 22 percent of all unemployed workers.
And so there has to be something done to address that problem. So, really, if you say, where are the areas that we are most hardest hit, that something has to be done? Obviously, construction. Obviously, manufacturing. And then, of course, there's African-American unemployment.
Together, you're talking about -- if you add those three up, you're talking roughly two-thirds of all of the unemployment.
MALVEAUX: So it really is a mixed bag, but overall encouraging that we are moving in the right direction in the economy?
BOSTON: Overall, moving very much in the right direction. And I think that the rate of unemployment come a year from now will be much lower than most economists predict.
I would not be surprised at all to see that rate somewhere between 7.5 percent and 7.8 percent, where, for example, most are still projecting that it will decrease very, very slowly. But I think that recovery is going to be much faster even in the labor market.
MALVEAUX: All right. Well, we heard it here first, your prediction. We'll see if that happens for 2012.
(LAUGHTER)
BOSTON: I may not be your favorite economist afterwards.
MALVEAUX: If it's good news, yes.
BOSTON: OK.
MALVEAUX: All right. Have a good weekend.
BOSTON: Sure.
MALVEAUX: It is still the number one campaign issue, creating more jobs. All of the Republican candidates believe that cutting taxes and government spending will create an environment for the free market to come back on its own.
Here is where they stand individually.
Newt Gingrich would like to make the Bush-era tax cuts permanent. He would eliminate capital gains taxes, lower the corporate tax rate, and eliminate the estate tax. He promises to repeal banking and financial regulation reform, and to make major changes to how the Environmental Protection Agency and the Food & Drug Administration operate.
Mitt Romney has a 59-point plan, 59 points, right, to get America back to work. At the heart of it is cutting government spending, rolling back regulations on banks, cutting taxes for corporations to 25 percent, and cutting discretionary spending by five percent.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Government does not create jobs. Free American people pursuing their own dreams, that's how we create jobs.
(END VIDEO CLIP)
MALVEAUX: Rick Santorum wants to push the corporate tax rate to zero for American manufacturers. He's also dedicated to cutting government spending and rolling back regulations.
(BEGIN VIDEO CLIP)
SANTORUM: I believe in cutting taxes. I believe in balancing budgets. I propose cutting $5 trillion from this budget over the next five years.
(END VIDEO CLIP)
MALVEAUX: Jon Huntsman also says he'll cut taxes, reform the tax code to eliminate loopholes, he'll lower the corporate tax rate, and roll back government regulations and financial reform laws. He wants to move towards energy independence and establish new lines of trade with other countries.
Ron Paul, he'd get rid of the Federal Reserve and the income tax, return to the gold standard, shut down several government agencies like the EPA and the Department of Education.
Rick Perry favors a flat tax for all-Americans and corporations of 20 percent. He'd like to shrink the federal government, roll back regulations as well. He would also set a goal balancing the budget by the year 2020.
All the candidates have zeroed in on what they like to call Obama-care, saying that they would overturn the president's health care mandate.
There you go. That's where they stand.
From near tragedy to triumph, meet an Olympic swimmer who is using his own story to teach kids they can overcome any obstacle.
(COMMERCIAL BREAK)
MALVEAUX: Breaking news here for you. The U.S. State Department, a spokesman, is now confirming that Jakadrien Turner, the teenager from Dallas, who was mistakenly deported to Colombia, has left Columbia for the United States. Officials say she left Colombia at 10:30 eastern. The U.S. embassy in Bogota is working closely with Colombian officials as well as officials in Dallas to bring her back home. She was reported missing from her family for about a year or so.
She was mistakenly deported to Columbia; set to return. This case has garnered a lot of attention as her family is planning to file lawsuits against the agencies, immigration agencies involved in her actually being removed and deported from the United States and brought to Colombia. This was a teenage run away from Dallas whom, through various mistakes and miscalculations and false stories, ended up being deported to Colombia, staying there for a while. Her family fought to get her back and now she is coming back and she's on her way home. We're going to have more of this story and the information as it develops.
Collin Jones almost became one of the thousands of people who accidentally drowned. Thanks to the life guard who saved his life and some much need swimming lessons, he became the first African-American man to hold a world record in swimming. Dr. Sanjay Gupta has the story in this week's "Human Factor."
(HUMAN FACTOR)
MALVEAUX: Well, the NFL playoff games get underway this weekend. Before the kickoff, turn into CNN, 7:30 Saturday and Sunday morning. Dr. Sanjay Gupta, he'll talk with a former Pro Bowl running back who is suing the NFL over health and safety issues. We're going to hear his story.
We're getting a lot of responses to today's "Talk Back" question. Today we're talking about the race for the White House. We asked, what's your number-one issue and why.
Matt says, "Fiscal responsibility. You can't spend more than you take in. It's simple as that."
More of your responses up next.
(COMMERCIAL BREAK)
MALVEAUX: We're watching live pictures there. You see it there. President Obama is going to be addressing the American people as well as a new watchdog agency, a government agency that is aimed at helping consumers' money being protected, various ways of doing that. He just appointed a director. It is a controversial move. But the president saying this is necessary. It is the Consumer Financial Protection Bureau. We'll bring you those remarks as soon as they happen. We expect that to happen fairly soon.
Getting a lot of responses to today's "Talk Back" question. Today, we are talking about the race for the White House. We asked, what's your number-one issue and why?
Ryan says, "The economy is the most important factor. It has the most adverse affect on all other problems." Kenneth says, "America needs an energy policy. And I don't hear anyone putting it on the agenda. There's a bit of info on their web sites, but it seems to be a last concern to all Republicans."
Peter says, "Immigration. This issue has been going since on Bush became president. Deportation is separating family and friends. People that have been here since they were kids are being deported to a country they don't even know."
Lonnie says, "Education. The education of the president, that is."
Keep the conversation going on my Facebook page, Facebook.com/SuzanneCNN. We're going to read more responses in the next hour.
President Obama, he is dropping by to visit the new watchdog in charge of protecting your money. We're watching -- keeping a close eye on that. We'll bring you his remarks. It is from the Consumer Financial Protection Bureau. That is live. We're going to explain, what does this agency do? What's it supposed to do?
(COMMERCIAL BREAK)
MALVEAUX: We're waiting for remarks from President Obama at the Consumer Financial Protection Bureau. It's a new agency. We'll bring you those remarks, live.
This is what happened on Wednesday. The president appointed Richard Cordray as director of this agency. He's going to pay a visit to Cordray, the employees that are there. We also expect the president is obviously going to talk about those good numbers, December jobs report that was just released earlier today.
But first, we want to talk a little bit more about the consumer agency the president is visiting, how it's supposed to watch out for your money.
Alison Kosik is at the New York Stock Exchange.
Alison, tell us what this agency is set up to do.
KOSIK: Suzanne, so the name itself says it all, the Consumer Financial Protection Bureau. The point is to protect your financial interests. It's a one-stop shop place. It's going to oversee everything from student loans, debt collectors, pay day lenders, mortgage servicers.
Another reason for this bureau is the fact that millions of people, they don't belong to a bank. They go to these pay day lenders. They pay huge interest rates. All the terms aren't laid out clearly. If you remember, it was a huge, huge factor in the 2007 subprime crisis. So what this bureau is trying to do is try to correct that. It's trying to make sure people know what they're getting into. So as this kind of new pup into town, it will make sure that financial institutions play by the rules and that you understand the fine print, meaning the consumers.
MALVEAUX: Alison, as a controversial agency, there's some folks, the critics at least, believe there are other government agencies and ways to protect consumers without creating more bureaucracy. How did this come about?
KOSIK: OK. So if you remember, it was part of the Wall Street reforms that came about in 2010, AKA the Dodd-Frank Act. It's actually the brain child of Harvard Professor Elizabeth Warren. Many Republicans, they're opposed to creating this bureau, the CFPB. They want a committee leading it, not one person. Also they think that it's just adding one more unnecessary layer of bureaucracy.
But President Obama says it actually gets rid of bureaucracy because, before it was kind of divided up. There were seven agencies responsible for protecting our money. Either way you cut it, the bureau is sticking around for now -- Suzanne?
MALVEAUX: The bureau also has a director already. What does he specifically hope to get done?
KOSIK: OK. So what the bureau's going to be doing is specifically working on creating a simple, less than five-page form that actually explains your mortgage and breaks down in clear terms the costs and the risks? The bureau is also working on one for student loans, for credit cards as well.
Now that Cordray is in place, the CFPB is going to have some powers that it can act on. It may be able to declare financial products deceptive and ban them outright. The CFPB is also taking complaints from you. It's looking for scams. If you want to go ahead and complain or put in a complaint, go to their web site. It's pretty easy to use to report any scam that you may see -- Suanne?
MALVEAUX: All right. Alison, thanks.
We're awaiting President Obama's remarks. His appointment of Richard Cordray as the first director of the Consumer Financial Protection Bureau, it is drawing some fire, mostly from Republicans. It is because the Constitution requires the president to have Senate confirmation, right, before appointing cabinet secretaries or equivalent officers to lead the agencies. But there is an exception. The president may appoint an officer without Senate confirmation when the Senate's in recess. The problem is, technically, the Senate is not in recess. If you look in the Senate chambers, you'll see nothing but empty seats. The Republican Senators have refused to officially recess precisely because they want to deny President Obama the ability to appoint Cordray and others. So they've been careful not to adjourn for more than three consecutive days, therefore, no recess, according to the Constitution's appointment clause. You get it.
Our Wolf Blitzer took up the issue with Cordray.
(BEGIN VIDEO CLIP)
WOLF BLITZER, HOST, THE SITUATION ROOM: You know there's a lot of legal challenges presumably that will be leveled at the way the president did this during this pro forma session, not necessarily a legal recess session. What do you think?
RICHARD CORDRAY, NEWLY APPOINTED DIRECTOR, CONSUMER FINANCIAL PROTECTION BUREAU: Well, Wolf, I'm going to leave those distractions to others. I'm now the director of the consumer bureau. It's a big job, an important job. Our mission is to make financial markets work better for the American people.
BLITZER: Let me read to you a statement that Mitt Romney, the Republican presidential candidate, put out. He says, "President Obama's Consumer Financial Protection Bureau is perhaps the most powerful and unaccountable bureaucracy in the history of our nation, headed by a powerful and unaccountable bureaucrat with unprecedented authority over the economy."
I want you to respond and explain why he's wrong, if you believe, in fact, as I assume you do.
CORDRAY: Well, I think there's a lot of accountability in the law for this bureau. But the other thing is there wasn't a lot of accountability in the financial marketplace before we had the meltdown in 2008. That was a real tragedy for this country and it hurt millions of people. Part of it was because we had banks and non-banks competing in financial markets. Non-banks were entirely unregulated in many cases. They led a race to the bottom, they destroyed standards and they hurt a lot of people.
BLITZER: Who will be overseeing, from the Congressional perspective, your bureau?
CORDRAY: I believe that we're subject to the leadership in both houses of Congress. I have spoken personally to those folks over the course of this process and pledged that I would give them the input and information that would help them understanding how we're doing our job and how to do it better.
(END VIDEO CLIP)
MALVEAUX: I want to go to the White House where Jill Dougherty is standing by to talk about the politics of this.
Jill, because, again, this is back and for the here. It is a controversial move that the president has made. I am assuming that this is helping him in some ways for his Democratic base, who don't think that he's been tough enough with Republicans and who look at all this gridlock and say, do something.
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: I think you would definitely be right if you thought about that. Standing back, after that, you need a law degree to figure this out and --
(LAUGHTER)
But the whole idea is -- at least the White House would like to put it -- is the president standing up for the consumer and they, of course, would say with this move the president is standing up and that's what they want. Look at the focus that the president has right now. It's jobs, average Americans, helping average Americans. And so the Republicans can use this and say, no, it's the government riding roughshod over the American people. The president's doing something illegal at least as they define it. But the White House can say, number one, we're legal, and number two, we want to help the American consumer. Obviously, they believe that ultimately it is going to help them.
MALVEAUX: They're banking on the fact they think this can work.
All right. Jill, thank you very much. Appreciate it.
Looking at politics. A lot of folks assume that Mitt Romney is going to win New Hampshire's primary. Right? But with four days until the showdown, his rivals now are picking up speed. We'll have the latest in the "Political Ticker."
(COMMERCIAL BREAK)
MALVEAUX: I want to take you to some live pictures out of Minnesota. This is quite amazing when you look at the video here. This is a semi-truck that left Interstate 94 near Monticello, plunged through ice in a nearby creek. It happened just before 6:30 in the morning. State patrol spokesman says that the driver amazingly managed to escape, and crawled across the ice to safety there. He was treated and released from a local hospital. The truck driver who moved through the scene. He says it appears this trucker lost control of the rig. He left the road, plowed through catcher cables, across two lanes of freeway traffic, then into this pond. Amazingly, these pictures here, that driver surviving. But obviously you can see that semi-truck in the ice. And that truck driver amazingly managed to escape.
It's serious business, folks, running for president, but there are also a lot of laughs, too. Comedians do it at candidates' expense. Last night, David Letterman aimed his top-10 list at Newt Gingrich.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST, LATE NIGHT WITH DAVID LETTERMAN: Number 10, new campaign slogan -- what up, Gingsta.
(LAUGHTER)
Number nine, since losing Iowa, he's married and divorced eight different women. Number six, when he hears the world "caucus," drops his pants and says, I'll show you a caucus.
(LAUGHTER)
And number three, makes cameo appearance in Casey Anthony's new video blog.
(LAUGHTER) Number two, losing it. When did he ever have it, ladies and gentlemen? And the number one sign Newt Gingrich is losing it -- claims he was born in Kenya.
(END VIDEO CLIP)
MALVEAUX: Four days until the New Hampshire primary. Things heating up pretty fast.
Paul Steinhauser, live from Manchester, New Hampshire.
Paul, a little bit of a spike in momentum we're now seeing for Rick Santorum. Is that right?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, it is right. How could I follow a funny guy like Letterman?
(LAUGHTER)
I'll try to. I'm not nearly as funny.
For Santorum, that close second place finish the other night in Iowa in the caucuses is paying dividends. I've now confirmed that his campaign has brought in over $2 million over the last two days since that very impressive showing out there in Iowa. Look at this. Brand- new poll numbers right here in New Hampshire four days from the primary, this is of people likely to attend the Republican primary. There is Santorum in double digits for the first time in this Suffolk University/News 7 poll. He's at 11 percent. You can see Mitt Romney, the former neighboring governor of Massachusetts, overwhelming frontrunner here, with Ron Paul in second place, and everybody else in single digits. That's where the lay of the land is right now.
Suzanne, back to you.
MALVEAUX: Paul, I understand the guy that has been camping out in New Hampshire, Jon Huntsman, now has an endorsement. Might have paid off a little bit, all that time.
STEINHAUSER: Yes. He has been here non-stop. He's basically living in this state. But the former U.S. ambassador to China, former Utah governor, getting a good endorsement that may help. It's from the "Boston Globe" down there. The "Boston Globe" is right by a lot of people in the southern part of New Hampshire. But here's the thing. This is a liberal editorial page, so I don't know how -- it's like chicken soup, it definitely cannot hurt. The "Globe," for the second cycle in a row, did not endorse Romney. Romney was the governor right down there in Massachusetts -- Suzanne?
MALVEAUX: Chicken soup -- I like that analogy.
STEINHAUSER: Yes.
MALVEAUX: We were all watching Iowa overnight, early into the morning. Obviously, it was such a close call, a close race. But now there are some who say that maybe they need a recount here. What is that about?
(LAUGHTER)
STEINHAUSER: Maybe Mitt Romney didn't win by eight votes? Here's the deal. Hopenous County (ph) -- I'm probably mispronouncing it -- somebody who attended a caucus site in one county said Romney was over counted. He got 20 extra votes, this is what this person told KTTI, our affiliate in Iowa. Remember, Romney only won by eight votes over Santorum. So the Iowa GOP, the chairman says this is a two-week certification process. He doesn't think anybody will change by the end of that two weeks but he says he is reaching out to the county, to the precinct, and trying to find out exactly what happened. Stay tuned. Maybe -- maybe -- the results in Iowa aren't over yet -- Suzanne?
MALVEAUX: Wouldn't that be amazing, an upset.
Thank you, Paul.
(LAUGHTER)
Of course, all eyes will be on New Hampshire Tuesday. And the new political year is heating up. Make the best choice for politics, CNN's "America's Choice 2012." Join my friends, Wolf Blitzer, Erin Burnett, Anderson Cooper, Candy Crowley and John King for live coverage of the New Hampshire primary, CNN, Tuesday night, 7:00 p.m. eastern.
