American Morning

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February 10th, 2010
06:00 AM ET

'On the Brink' by Henry Paulson

By Henry M. Paulson, Jr.
From 'On the Brink'

Chapter 1

Thursday, September 4, 2008

Do they know it’s coming, Hank?” President Bush asked me.

“Mr. President,” I said, “we’re going to move quickly and take them by surprise. The first sound they’ll hear is their heads hitting the floor.”

It was Thursday morning, September 4, 2008, and we were in the Oval Offi ce of the White House discussing the fate of Fannie Mae and Freddie Mac, the troubled housing finance giants. For the good of the country, I had proposed that we seize control of the companies, fire their bosses, and prepare to provide up to $100 billion of capital support for each. If we did not act immediately, Fannie and Freddie would, I feared, take down the financial system, and the global economy, with them.

I’m a straightforward person. I like to be direct with people. But I knew that we had to ambush Fannie and Freddie. We could give them no room to maneuver. We couldn’t very well go to Daniel Mudd at Fannie Mae or Richard Syron at Freddie Mac and say: “Here’s our idea for how to save you. Why don’t we just take you over and throw you out of your jobs, and do it in a way that protects the taxpayer to the disadvantage of your shareholders?” The news would leak, and they’d fight. They’d go to their many powerful friends on Capitol Hill or to the courts, and the resulting delays would cause panic in the markets. We’d trigger the very disaster we were trying to avoid.

Read the full excerpt


Filed under: Business
February 9th, 2010
03:00 PM ET

Victory for New Orleans

Mardi Gras celebrations are already breaking out this year in New Orleans. Today, schools are closing early so everyone can get to the Louisiana Superdome in time for tonight's Super Bowl parade.

And still celebrating the Saints' championship is a pair of CNN political contributors who happen to be husband and wife and members of the "Who dat" nation – James Carville and Mary Matalin. They joined us on Tuesday's American Morning.


Filed under: Sports
February 9th, 2010
01:00 PM ET

Judge to Jackson's doctor: 'I don't want you sedating people'

Michael Jackson's doctor is free on bail today. According to his lawyer, Conrad Murray is ready to resume practicing medicine.

Murray is charged with involuntary manslaughter in connection with Jackson's death. Yesterday, he pleaded not guilty as Jackson's family looked on. Our Ted Rowlands was there and has this report.

Related: Joe Jackson: Dr. Murray 'a fall guy'


Filed under: Crime • Entertainment
February 9th, 2010
12:00 PM ET

Dr. Gupta: 'My mind never left Haiti'

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/02/09/guptahaitihospital.jpg caption="Dr. Sanjay Gupta in Port-au-Prince hospital."]

By Dr. Sanjay Gupta, CNN Medical Chief Correspondent

When I told my wife I wanted to go back to Haiti, she had the reaction I expected. “The girls really missed you when you were gone last time,” she said. “I am worried that you lost too much weight down there,” she added. And, “what about your safety, physical and mental well being?” she concluded. They were all the reactions I expected.

The car was then silent as we were driving through our neighborhood on a rainy Saturday morning. In that quiet, we both realized something essential. I knew she was right, on all counts. And, still, she knew it was the right thing to do. She was the first to speak and break the silence. “Truth is, I would go with you,” she whispered. “I would like to help as well.”

I thought about that conversation a lot on the middle-of-the-night flight to Florida, a connection to Santa Domingo at 3 a.m. and then finally the early morning arrival in Port-au-Prince. She has seen the images on television of the unfathomable suffering over the last month, and she was affected by it in more ways that I realized.

Over the few days I was home, we hardly talked about what I had seen in Haiti. I felt the need to protect her from those stories, some of which I may never share with anyone – and she was cognizant of the desire to not re open the emotional images. She also knew that while I was physically home, my mind never left Haiti.

Keep reading this story »


Filed under: Haiti
February 9th, 2010
11:00 AM ET

Was medical error to blame for Rep. Murtha's death?

Pennsylvania Democratic Congressman John Murtha died suddenly yesterday after complications from galbladder surgery. Now many are asking what went wrong?

Our senior medical correspondent Elizabeth Cohen explains.

Read more: Murtha dies of surgery complications


Filed under: Health • Politics
February 9th, 2010
10:00 AM ET

Runways ready for more snow to freeze flights across U.S.

More heavy snow is moving in from the Midwest to the Mid-Atlantic states. And travel problems still haven't cleared up from the weekend when parts of the D.C. area got 30 inches.

Some people are wondering if they'll get out this week. Our Sarah Lee reports from Reagan National Airport with a look at how things are moving.

Severe Weather Tracker: Radar, snow


Filed under: Weather
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