Top U.S. Commander Resigns; Spitzer's Sex Scandal Leads to Question of Resignation; Primary Day Dust-Ups
WOLF BLITZER, CNN ANCHOR: Happening now, a surprise resignation over at the Pentagon with implications in Iraq. We're following the breaking news in Washington. Also, here in New York this hour, there's new evidence that the governor, Eliot Spitzer, may be preparing to step down. A stunning prostitution scandal still unfolding. We're following all the latest political and legal consequences. Plus, on this primary day in Mississippi, a new jolt of racial tension in the Clinton/Obama contest. A top Clinton surrogate drawing a controversial connection between Obama's race and his candidacy. And John McCain on the defensive. Some Democrats asking this question: Should taxpayers foot the bill for him to go overseas and look the part of commander in chief? I'm Wolf Blitzer at the CNN Election Center. You're in THE SITUATION ROOM. The polls close in Mississippi four hours from now. And every Primary Day is important in this still undecided Democratic presidential race. We're going to have the latest on the campaign shortly. But first, the breaking news out of the Pentagon. Another stunner. The top U.S. military commander for the Middle East resigns after just a year on the job. That would be Admiral William Fallon. Let's go straight to our senior Pentagon correspondent, Jamie McIntyre. He's watching the story for us, Jamie, what exactly is going on? No one expected this.</s>JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Wolf, it's a real bombshell. And what it turns out is that an article in "Esquire" magazine that portrayed Admiral William Fallon as the last man standing between the Bush administration and war with Iran has ended the military career of that top commander. Admiral Fallon, concerned that the -- what he believed was a misrepresentation that he was at odds with President Bush created by that magazine article announced that he will step down as the commander of the Central Command. And today, Defense Secretary Gates accepted that resignation. Here's what Fallon said in part in his statement. He said, "Recent press reports suggesting a disconnect between my views and the president's policy objectives have become a distraction at a critical time. And although I don't believe there have been any differences, the simple perception that there is makes it difficult for me to effectively serve." Today Secretary Gates said he believes that that is a misperception. Nevertheless, at a Pentagon press conference just a short time ago, he said Admiral Fallon is making the right decision.</s>ROBERT GATES, DEFENSE SECRETARY: I think it's the right decision. As I say, the notion that this decision portends anything in terms of a change in Iran policy is, to quote myself, ridiculous.</s>MCINTYRE: Ridiculous it may be, but that is the perception that was created by that "Esquire" magazine article, and now may be reinforced by the fact that many will believe that Admiral Fallon has been forced to step aside. Here's in part a little bit about what that "Esquire" article said. "How does Fallon," said Thomas Barnett, who wrote this article, "with so brazenly challenging his commander in chief? The answer is that he might not get away with it for much longer. President Bush is not accustomed to a subordinate who speaks his mind as freely as Fallon does, and the president may have had enough." Now, again, the Pentagon disputes that there's any problem between Fallon and the president, or that the president was ready to get rid of him. But they say the perception created by the article is what prompted Fallon to step down. But again, no one told him he should stay. And the very fact that he's resigned, Wolf, is simply going to make this look like a self-fulfilling prophecy.</s>BLITZER: Jamie McIntyre, I know you're staying on top of the story. We're going to come back to you. Thanks very much. A real bombshell over at the Pentagon today. Let's get to the other breaking news this hour. The New York governor, Eliot Spitzer, clearly feeling the pressure to resign a day after his bombshell news linking him to a prostitution ring. The New York Democrat is said to be weighing his options and bracing for what could be happening next. Mary Snow has been covering the story from the start. What's the latest, Mary?</s>MARY SNOW, CNN CORRESPONDENT: Wolf, you know, talking to Democrats in New York State, the question now does not seem to be if Eliot Spitzer will step down, but when.</s>SNOW (voice over): There was no sign of New York Governor Eliot Spitzer one day after federal prosecutors linked him to a high end prostitution ring. The governor's spokeswoman would only say Spitzer was at his Manhattan apartment with his family. But in the state's capital of Albany, a legislative aide tells CNN transition talks were under way between Spitzer's staff and aides to Lieutenant Governor David Paterson. And a top state Republican lawmaker says if Spitzer doesn't step down voluntarily, he'll begin impeachment proceedings.</s>JIM TEDISCO (R), NEW YORK ASSEMBLY MINORITY LEADER: We're waiting for the governor to do the right thing. We think and we hope he will. If not, it's within 24 to 48 hours. We're developing the paperwork right now, putting the resolution together, and then we're going to make that request within the next two days if he does not resign himself so we can go forward.</s>SNOW: Spitzer admitted nothing specific when he publicly apologized Monday.</s>GOV. ELIOT SPITZER (D), NEW YORK: I have acted in a way that violates my obligations to my family and that violates my or any sense of right and wrong.</s>SNOW: Federal investigators have linked Spitzer to a prostitution ring that initially resulted in four arrests last week described in a federal affidavit. Sources tell CNN the link was the result of a money laundering probe after a bank initially filed a suspicious movement report with the IRS. Spitzer has begun putting together a legal team, which had no public comment. But one former New York City prosecutor says Spitzer's lawyers are most likely trying to negotiate with federal prosecutors.</s>UNIDENTIFIED MALE: The last poker chip that Eliot Spitzer has is the governorship. And he's hoping that prosecutors will be willing to allow him to resign and accept that resignation as punishment for the criminal charges.</s>SNOW: Now, that assessment coming from a former U.S. prosecutor. As for what's happening exactly, we still don't know. I just checked in with the governor's office, Wolf. A spokeswoman saying there's nothing new to report. But, you know, talking to some of the lawmakers in Albany, they are truly calling this a crisis and saying this, of course, the only thing anyone is talking about.</s>BLITZER: The biggest political scandal in New York State in a long, long time. All right, Mary. Thanks very much. I know you're working the story as well. Just ahead I'll be speaking live with the New York assembly minority leader, Jim Tedisco, about his call for Eliot Spitzer to step down. That's coming up. Now to the Democratic race -- presidential contest. Barack Obama is hoping to win today's Mississippi primary and put the brakes on Hillary Clinton's renewed momentum. Their contest is playing out right now on several fronts, and racial politics unfortunately right back in the mix. Let's go to Suzanne Malveaux. She's in Pennsylvania watching this story for us. They're once again looking at beyond Mississippi today, looking towards Pennsylvania, Suzanne, and even beyond that. What's the latest?</s>SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, it's really telling that both of the candidates are already in Pennsylvania. You've got those 158 delegates at stake. And six weeks to campaign, but they're not wasting any time at all. These campaigns also today, Wolf, embroiled in a controversy that once again puts Barack Obama's race front and center.</s>MALVEAUX: Mississippi voters are going to the polls today to weigh in on the fierce political fight between Senators Hillary Clinton and Barack Obama. Senator Obama, the odds-on favorite, campaigned in Greenville, Mississippi, where he stopped at a diner for eggs and grits.</s>SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I know everybody is going to be either already voted or on their way to vote.</s>MALVEAUX: Senator Clinton has already moved on to Pennsylvania, where she's hanging her hopes on their April 22nd primary, six weeks away. She is playing up her hometown advantage, reminding voters her family of Rodhams have deep roots here.</s>SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: And my brother was there and actually was on the team. So it's now up to the voters here. And you have to a choice to make. And I believe that choice comes down to who offers the solutions we need for the problems we face in America.</s>MALVEAUX: The Clinton campaign is facing pointed criticism from the Obama camp today after controversial comments were published in a California publication "The Daily Breeze" by Clinton fundraiser and financial adviser, and former vice presidential nominee, Geraldine Ferraro. In an interview, Ferraro said, "If Obama was a white man, he would not be in this position. And if was a woman, he would not be in this position. He happens to be very lucky to be who he is. And the country is caught up in the concept." Obama senior policy adviser Susan Rice immediately called for Hillary Clinton to repudiate Ferraro's remarks. Obama supporter Congresswoman Jan Schakowsky followed up with a conference call with reporters. She said the suggestion that Obama was getting preferential treatment because of his race was out of line. Clinton's communication's director, Howard Wolfson, said the campaign did not agree with Ferraro's statements.</s>MALVEAUX: And wolf, late in the day Senator Clinton was asked directly about Ferraro's comments, and she said this to the ABC affiliate, WHTM -- she said, "I don't agree with that, and I think it's important we stay focused on the issues that matter to the American people. Both of us have had supporters and staff that have gone over the line, and we both have had to reign them in." So, Wolf, obviously repudiating those comments by Geraldine Ferraro. This comes after last week, Obama's national foreign policy adviser, Samantha Power, calling Hillary Clinton a monster, left that campaign -- Wolf.</s>BLITZER: Suzanne Malveaux in Pennsylvania for us already. Thanks, Suzanne. And remember, this is the place to be for up-to-the-minute coverage of the Mississippi primary results. Tonight I'll be here, along with the best political team on television, throughout the night. We're going to bring you the first results when the polls close in Mississippi at 8:00 p.m. Eastern. Stay tuned for that. Jack Cafferty is here in THE SITUATION ROOM with "The Cafferty File" -- Jack.</s>JACK CAFFERTY, CNN ANCHOR: You expect this is going to be a long night tonight, do you?</s>BLITZER: Probably not.</s>CAFFERTY: No.</s>BLITZER: But it's always interesting. If you love politics, you want to know what's going on. And we're the place.</s>CAFFERTY: Well, and we'll know by 8:01 probably?</s>BLITZER: Maybe. Maybe.</s>CAFFERTY: The race between Hillary Clinton and Barack Obama now looks like it could go on for months, and it's becoming increasingly bitter. "The Wall Street Journal" reporting groups that for months have energized the Democratic campaign, like blacks, women, young voters, are increasingly sniping at each other now. They point out more Republicans now say they're satisfied with John McCain than Democrats are with either Clinton or Obama. This is a big change from January, when many more Democrats were satisfied with their choices. Some Democratic activists insist this is normal. And after the convention we will all come together and sing "Kumbaya" and go to a big campfire together and cook marshmallows and live happily ever after. Not everybody's convinced that's going to happen. Donna Brazile, who appears frequently on this program, is a Democratic strategist, says this, "I'm fearful we're headed into uncharted territory." She adds, "The mood and tone of the campaign have shifted in the last few weeks." For example, black talk radio shows are now getting callers who say they will stay home in November if Hillary Clinton wins the nomination. When it comes to women, some Clinton supporters say if Obama gets the nomination, they'll vote for McCain instead. And as for that youth vote that Obama has mobilized in record numbers this primary season, some Clinton backers worry that they wouldn't turn out in the same numbers for her in a general election. Probably right. Here's the question: If the Democratic candidate you support doesn't win the nomination, for whom would you vote in the general election? Go to CNN.com/caffertyfile. You can post a comment on my blog. Very loyal followings, both these Democratic candidates. And a lot of people on one side or the other are going to be disappointed.</s>BLITZER: And the question will be, can they unify?</s>CAFFERTY: And then what do they do? Yes.</s>BLITZER: Can they get together with that, you know -- I hate to even use that expression anymore, the dream ticket? But I wouldn't rule it out.</s>CAFFERTY: It would be a nightmare.</s>BLITZER: Jack, good question. That's very much. It's the question of the day -- that's another question, not Jack's question. This is the question: What was Eliot Spitzer thinking?</s>ED KOCH (D), FMR. NEW YORK MAYOR: What we see happening here is a Greek tragedy. Yes, it's arrogance. He's a very smart guy. But I think that there is a screw loose.</s>BLITZER: Up next, the former New York mayor, Ed Koch, has plenty to say about the Spitzer scandal. Also coming up, Barack Obama and Hillary Clinton facing off in Mississippi. We're standing by for the first exit poll information to get a sense of what voters down there are thinking. And in our "Strategy Session," the former vice presidential nominee, Geraldine Ferraro, pegs Obama's campaign success to his race. Donna Brazile and Leslie Sanchez, they're read to discuss that and a lot more. Stay with us. You're in THE SITUATION ROOM.