[Kyra Phillips, Cnn Anchor:] Home is where the help is. At-risk neighborhoods getting more attention. Banking giant Citigroup announces a $20 billion bailout for beleaguered homeowners.
[Unidentified Female:] There are no front lines in Iraq. So very often we found ourselves engaged by enemy forces.
[Phillips:] Washington's policies a long way from Iraq's realities. Female soldiers facing front line combat. Tammy Duckworth weighs in, too. She knows what gun fights are like, and she's got the Purple Heart to prove it. Radiant and Rosebud, code names and new digs, a peek inside Sasha and Malia Obama's excellent adventure. Hello, everyone, I'm Kyra Phillips live at the CNN World Headquarters in Atlanta. And you are live in the CNN NEWSROOM. For millions of people all over the country, economic disaster hit home a long time. Rescue attempts have been hit or miss, but now they are getting serious. As we speak, the Feds are unveiling plans for so-called mortgage workouts, easier terms for homeowners in over their heads. The banking giant Citigroup is acting on its own. It is putting many foreclosures on hold and trying like never before to keep loans from failing. AIG is too big to fail, and that is the rationale for a $150 billion government bailout. Today, the insurance giant is defending its spending, in particular a six figure sales conference at a Phoenix resort. As for the credit crunch, interest rates on bank to bank loans have fallen to historic lows. That is welcomed sign of fuel for a sputtering economy. Let's start where all the trouble started not so long ago with mortgages. The move by Citigroup is the latest by major lenders to get their own houses in order by helping borrowers keep theirs. CNN's Gerri Willis joining me here in the NEWSROOM to run the numbers and explain what they could mean for you. OK, Gerri, let's begin with help, as a homeowner, why don't we start with Citibank?
[Gerri Willis, Cnn Personal Finance Editor:] That's right. Citibank has a new program out there for homeowners. They're proactively going out into the communities, right now, contacting 500,000 half a million homeowners, and offering them new loans, more affordable loans. Now, I have to tell you, Citi is not the only bank in the country doing this. Bank of America is doing it, and all of them are trying to do it now, because they are getting money from the federal government. And I think they feel a little guilty, they have to put something back into the community. But if you are a Citibank mortgage holder, you might want to pro-activity call them and talk to them about this program. It's very interesting and it really could help a lot of people out there.
[Phillips:] And do I dare ask about Fannie and Freddie?
[Willis:] There is a new program.
[Phillips:] OK.
[Willis:] Yet another program; Fannie Mae and Freddie Mac they are coming out with a new program. This one could be very interesting. It would take your mortgage payment, your mortgage loan and reduce it to 38 percent of your monthly income. Think about that. That is the affordability level for people out there. That could make a very big difference for folks out there. We are just getting details of this now, but it could be a very interesting program. And of course, Freddie Mac and Fannie Mae, they stand right at the center of the mortgage industry and they have the ability to touch lots of lives. That has been the problem with a lot of these programs so far is that they just have not gotten up to speed. The numbers are not that impressive yet, when you consider millions of Americans are worried about foreclosure.
[Phillips:] You see that, lowering principles, reducing interest rates, extending loans. All right, what if I'm a homeowner facing foreclosure? Do all those plans necessarily apply to me?
[Willis:] Well, not everything is starting tomorrow. So you maybe having trouble today and be worried about losing your home today. Call your bank, yet again, even if you have been turned down. Even if you have been turned down for help so far, a new program may be out there that can help you. You definitely want to talk to them. Also, get some counseling help. NFCC.org, a great Web site to go to. You can get a credit counselor. Because let's face it, if you are having trouble paying your mortgage, you may be having paying other bills. Your financial problems may be bigger than your mortgage. So get help there. And also HUD.gov, that is the Department of Housing and Urban Development. These are the folks that are administering many of these programs that we have been talking about. They have counselors in local areas. Maybe in your neighborhood, who can consult with you and tell you the best program to go to for your problem. So you have got to get local help. You have to reach out. Call someone if you are in trouble today.
[Phillips:] Interesting, so if the bank turns you down, you can actually go back and may?
[Willis:] These programs are changing every month. They announcing something new. Trying to reach out and help people. I know it is frustrating, because you have to often fill out a lot of paperwork.
[Phillips:] Right.
[Willis:] But if you have been turned down before, call again to your lender.
[Phillips:] Say, Hey, do I have another shot?
[Willis:] Right.
[Phillips:] OK, Gerri Willis, great to see you.
[Willis:] Good to see you.
[Phillips:] And one more sign of the changing economic times, American Express is becoming a bank. That will allow the struggling charge card company to take deposits from account holders and tap into low-cost financing from the Fed. Late last month, the company laid off about $7,000 people, 10 percent of its workforce. I know what you are thinking, how is the LIBOR? Pretty good, actually. The London Interbank offered rate is a key gauge of credit flow and global markets. Just last month, at the height of the freeze, the overnight LIBOR, the average rate banks were charging one another for overnight loans, was almost 7 percent. This week it is under one half of 1 percent which is an all-time low. Three days in the sun has thrown the insurance colossus AIG into the hot seat. The firm is insisting that a sales conference last week in Phoenix was a legitimate business, not a fat cat retreat. But given its $150-billion government bailout, any signs of lavish spending is raising eyebrows and blood pressures on Capitol Hill. CNN's Allan Chernoff on the story in New York. Allan, is this a question of appearances or you think something else?
[Allan Chernoff, Cnn Sr. Correspondent:] Kyra, this is a question of how AIG can conduct normal business without getting slammed with criticism. AIG as you mentioned is receiving tens of billions of dollars in aid from the federal government, bailout money, and indeed, now, Uncle Sam owns 80 percent of AIG. Well, last week, as you said, AIG held a conference in Phoenix. It was for financial planners. It was held at a very nice resort, the Hilton Squaw Peak Hotel. And this, as I said, was for financial planners, but have a look at these pictures and Congressmen Elijah Cummings, did as well. And it certainly got him steamed up. He is highly critical of this. Let's have a listen to what he said this morning on "AMERICAN MORNING."
[Rep. Elijah Cummings,  Maryland:] These guys don't get it. They came to us, basically saying that we are on the critical list, we need a respirator, and we bail them out. And the next thing you know we turn around and they are going out partying and spending the taxpayers' dollars. It is kind of it is very upsetting.
[Chernoff:] The congressman sent a letter this morning to the new chief executive of AIG, and that letter said, quote, "AIG can take a first step by accepting your resignation from the positions of chairman and chief executive officer." Keep in mind that Edward Liddy was put in as part of this federal bailout of AIG. He has been in place only for a few weeks, and his job is to sell off many divisions to help pay back Uncle Sam. Anyhow, AIG says that all of the criticism, especially from the congressman, is simply unfair.
[Unidentified Male:] I can understand why the congressman would be upset, but I think that he is responding to an incomplete picture. This was a legitimate meeting. It was really for independent advisers and very list cost to AIG.
[Chernoff:] In fact, AIG says that the conference was held not for AIG employees for outside financial planners to help educate them about AIG products, such as insurance, annuities and products that generate, according to AIG $200 million a year in sales. So they say it was really a profit generator for AIG. They also say that 93 percent of the cost of this conference was covered by sponsors, such as MorningStar, and other financial service companies, and that AIG paid less than $25,000. In fact, Terry Bradshaw, the former quarterback, was supposed to be a motivational speaker, he was canceled, the cost wasn't going to be covered by AIG, according to the company. Nonetheless for appearance sake, they say that they canceled that. And AIG also put out a statement saying, quote, "We take very seriously our commitment to aggressively manage meeting costs." Kyra, during the past hour last hour, we did talk about the idea that perhaps AIG might want to think about maybe holding future conferences at Motel 6. Well, we checked. Our managing editor Jay Kernes e-mailed me, and indeed, yes, there is a Motel 6 in Phoenix.
[Phillips:] There is. And how much is it a night? That's follow- up two.
[Chernoff:] It is a lot less than the Hilton.
[Phillips:] OK, I'll look back and thank Jay for that, personally. All right, thanks, Allan. Thank you. Well, the story has a lot of you asking a lot of questions. And tonight, well, you'll get the answers from the man in charge. AIG Chief Executive Officer Edward Liddy in an exclusive interview on "LARRY KING LIVE", that's tonight, 9:00 Eastern, only on CNN Let's go straight to Wall Street now to see how investors are reacting to all of this. Stephanie Elam at the New York Stock Exchange. Hey, Steph, do you stay at Motel 6s?
[Stephanie Elam, Cnn Correspondent:] I do not. And I know you are not shocked to hear that in any way shape or form.
[Phillips:] I know how classy your husband is. OK, we digress. I'm sorry.
[Elam:] Oh, we digress. And I'm going to get some text messages about that one, I know it. All right. Stocks, right now, though, they are taking it on the chin today, especially auto and financial stocks. It is also near the end of earning season and investors are not encouraged by the guidance most companies are giving for next year. Starbucks actually falls into that category. It is saying it's income fell 97 percent last quarter. It also lowered it's outlook for next year and cut plans to opening up new stores around the world. And GM stock, General Motors shares are sliding another 13 percent today falling to a 65-year low. GM is dealing with a firestorm of bad news. Today, the company warned its former parts division, Delphi, may never emerge from bankruptcy, echoing warnings that its financing arm may not survive. So, with all of that in mind, let's go ahead and check the numbers. The Dow off 192 and it is actually well off the lows of the day. We were off 310 at one point. So 8676 there. Nasdaq off 35 at 1581. We will keep our eyes on it, Kyra, and see if certain stocks are moving today. Maybe Motel 6, you know, we'll look into it.
[Phillips:] Now that we have given them a big national plug. Right?
[Elam:] Exactly.
[Phillips:] That is going to be the hip place to go. All right.
[Elam:] Right.
[Phillips:] Thanks, Steph. Well, straight ahead, thank you. Two simple words used by the outgoing commander and chief to mark Veterans Day. And on the Hudson River, in New York City, President Bush rededicated the U.S.S. Intrepid, itself, a battle-hardened veteran of World War II. Take a listen.
[George W. Bush, President Of The United States:] These noble Americans are our sons and daughters, they are our fathers and mothers, they are our family and they are our friends. They leave home to do the work of patriots, and they lead lives of quiet dignity when they return. Today, we send a clear message to all who have worn the uniform, thank you for your courage. Thank you for your sacrifice. And thank you for standing up when your nation needed you most.
[Phillips:] Well, the president also looked back on his eight years as commander in chief. He says what he will miss the most about the presidency is leading quote, "Such a fabulous group of men and women, those who wear the uniform of the United States military. Mr. Bush's second in command was at Arlington National Cemetery. Vice President Dick Cheney laying the wreath at the Tomb of the Unknowns. Vice President Cheney acknowledged the U.S. is still a nation at war, but said Americans are safer than they were just after 911. The tomb honors the countless Americans who have died in war without their remains being identified. The future vice president is also paying tribute to America's troops. Including his own son, an emotional Joe Biden bowed his head at a ceremony in New Castle, Delaware, his home state. He paid special tribute to the National Guardsman troops and Reservists. His son, a captain in the Army National Guard, is currently deployed to Iraq. First they were troops, now they are citizens. We'll go live to San Diego to tell you about their swearing in ceremony. And once he goes to work in the Oval Office Barack Obama can undo some of the decisions President Bush has made in the last eight years. We are going to take a closer look at what might be changing through the power of executive orders.