record rain, a drenching and deadly east coast storm triggers flooding. power outages and travel delays. replacing rahm. the president's chief of staff to call it quits today so he can run for mayor of chicago. and survival story. the dramatic rescue of a missing hiker who survived for six days without food or water. >> i just couldn't stop saying, my husband, my husband, they found my husband. >> this is the "cbs morning news" for friday, october 1st, >> this is the "cbs morning news" for friday, october 1st, 2010. captioning funded by cbs good morning, everybody. thanks for joining us. i'm betty nguyen. we begin with a massive and deadly storm that has engulfed much of the atlantic seaboard.

the storm is moving into the northeast this morning leaving behind a trail of flooding, downed trees and travel headaches. overnight the drenching rain and high winds pounded maryland, where up to eight inches of rain fell and some 40,000 customers lost power. but, so far, north carolina, where at least five people were killed, has had the worst of it. dean reynolds reports. >> reporter: the victim's car ran off rain-slicked highway 64, two hours east of raleigh, where it plowed into a watery ditch killing four members of a georgia family. the first fatalities from this enormous storm that roared up the eastern seaboard, turning roads into canals, ponds into lakes, and front porches into docks. >> just keep your fingers crossed it doesn't come in because when it decides to come in there's much you can do. >> reporter: dropping a third of the total annual rainfall in carolina beach in just five days, exceeding even the infamous hurricane floyd in 1999. robert stuart lives here along the aptly named canal drive,

where the water sits right outside his door. he's been emptying his pump all week. >> probably fifth or sixth time. >> today? >> uh-huh. >> reporter: the town manager tim owens says it is tough to keep up with all the rain. >> i think rain-wise it is extraordinary. this doesn't happen that often. >> reporter: local residents agree. >> it's crazy. i've never seen the water come um like this before, it's nuts. >> reporter: to the nortsry north, two commuter buses collided injuring 26 and tornado watches extended from the outer banks to new jersey. >> the only good thing about this, it's not going to last long, we should start to see improving conditions by late tomorrow and much better for the weekend. >> reporter: dean reynolds, cbs news, carolina beach, north carolina. at at white house today a changing of the guard. one of the president's chief adviser, rahm emanuel is expected to announce his resignation, he plans to run for mayor of chicago. tara mergener is in chicago with the latest on this news on a

passengers replacement. good morning, tara. >> good morning, betty. seems the president already has someone in mind for the job. there's been speculation about emanuel's departure for weeks now and today it could become official. rahm emanuel is heading home to run for mayor of chicago. as white house chief of staff, the brash illinois native has been one of the president's most trusted and powerful advisers. >> he has been the leader of, i mean the title "chief of staff" in many ways says it all. >> reporter: emanuel expected to be replace on an interim basis by pete rouse, a long-time aide who has spent decades shaping washington policy from behind the scenes. >> pete's strategic sense has played a big part in the direction of virtually every big decision that's made inside of this white house. >> reporter: emanuel's departure comes as no surprise to washington insiders and there's speculation more top obama

administration officials could be on the move. >> two years, people start to leave. they burn themselves out, they work very hard or they have jobs they can't refuse on the outside. >> defense secretary robert gates among those expected to leave next year. press secretary robert gibbs could take on a new white house role and senior adviser david axelrod says he is heading back to chicago to run the president's re-election campaign. emanuel kicks off his campaign with a listening tour of chicago thabdz this weekend. and rouse is one of the least visible members of the president's senior staff but said to have, quote, a steady hand that can guide the white house through uncertain times. betty, back to you. big changes coming up. >> no doubt. tara mergener in washington for us, thank you. a con voif tankers carrying fuel for u.s. troops in afghanistan ambushed and destroyed in southern pakistan. that convoy, en route from karachi to quetta, attacked by at least ten gunmen early this

morning. the convoy was using an alternate route to afghanistan. pakistani authorities angered by u.s. helicopter strikes in pakistan shut down the main border crossing thursday. now to south america, troops in ecuador have rescued president rafael correa from protesting police. last night, ecuadorean troops stormed a hospital we are was treated after being tear gassed by protesting police and trapped more than 12 hours. the police were angered by a just-passed law that cuts benefits. hundreds of police went on strike blocking roadways and triggering looting. after he was rescued correa thanked his supporters and called the unrest an attempted coup. in italy, american amanda knox is scheduled to appear in court facing charges that could extend her time behind bars. last december, knox was convicted in the murder of her college roommate. today, she facing charges of slander brought by 12 italian police officers. she claimed they physically abused her. if convicted, another six years

could be added to her-year murder sentence. on the money watch stokes in asia got a friday boost. ashley morrison has the latest on all of that. good morning. >> good morning. asian markets got a lift on news on news about chinese manufacturing. today wall treat gets the august personal income and spending report and automakers release september sales numbers. thursday profit taking made for a down day, the dow lost 47 points and the nasdaq was down almost 8. despite those losses last month was the best september for stocks since 1939. the blue chips gained 8%, the s&p 9% and the nasdaq 12% but most experts don't expect the market to continue to roar, calling the gains deceptive because most of them were driven by a relatively small number of traders playing with a lot of money. turns out the big government

financial bailout t.a.r.p. may cost significantly less than originally estimated. it began as a $700 billion program as the economy was hitting the recession. but, the obama administration says the overall cost will drop to below $50 billion once it sells off assets it took control of. the t.a.r.p. program expires this sunday. walmart's prices at their highest level in 21 months. according to bloomberg, the world's biggest retail doeser's price tags have risen scaling back on discounts since earlier this year. most of the increase is related to prices for produce. and prices are not going higher at the post office. the panel that regulates the price of stamps has rejected a request for a two-cent hike. the postal service is projecting to lose $7 billion this year as americans turn increasingly online. and not your average auto recall. bmw is calling back nearly 200,000 luxury vehicles to fix

power brake systems that could leak. the recall involves the 5, 6, and 7 series beemers sold from 2002 until now. it also affects the ultra luxury rolls roast phantoms so, betty, you're probably going to make sure you get that rolls checked out, right? >> definitely. i'll send that to the shop right away. >> right on it. >> all right, ashley. thanks so much, joining us live in new york. just ahead on the morning news, tens of thousands of improper foreclosures under investigation plus against all odds, a hiker lost for day es without food or water is found alive. this is the "cbs morning news." ng news." ♪

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mortgage lenders have suspended foreclosures in 23 states. gmac and jpmorgan chase accused of cutting corners to speed up the repossession process. and analysts say even lenders with no known issues are expected to be more cautious about evicting families behind on their payments. bill whitaker has more on that. >> reporter: with 2.5 million americans already put out of their homes this recession and three million more on the brink, the foreclosure freeze by two of the country's biggest lenders raises serious questions whether americans are losing their homes legitimately. courts require lenders to verify and certify the homeowner is in default. these banks shuffled through tens of thousands of foreclosures in 23 states with little or no oversight. 56,000 by jpmorgan chase alone. florida foreclosure attorney christopher immel says one allied banker personally signed 10,000 foreclosures a month. robo signers he calls them

because one person reviewing so much paperwork seems humanly impossible. >> their goal is just to move through a foreclosure case as quickly as they can and cuts short different people's opportunity to try to get back on their feet. >> reporter: economists say banks overwhelmed by the sheer number of foreclosures took shortcuts, shortcuts that now could further delay any housing market recovery. >> the whole process now is going to slow down, may even come to a standstill for a while until the courts work through it. >> reporter: fear of foreclosure brought 8,000 people here. this will be going on 24 hours, around the clock, through monday. bill whitaker, cbs news, los angeles. new jersey investigators are seeking evidence that may lead to hate crime charges against two students implicated in the death of rutgers student tyler clementi. his roommate dharun ravi and another student molly wei have been arrested and charged with invasion of privacy, both now out on bail. the 18-year-old clementi jumped

to his death from a bridge after a secretly recorded video of him kissing another man was posted online. in sacramento, california today, phillip and nancy garrido will finally be arraigned on specific charges out of the kidnapping of jaycee dugard, who was abducted in 1991 and held captive 18 years. during which she bore two children allegedly fathered by him. she was identified and freed in august of last year. a southern california man is hospitalized in stable condition this morning after surviving six days in the desert without food or water. 64-year-old edward rosenthal went on what was to be a day hike last friday but got lost in the joshua tree national park. thursday, a helicopter crew finally spotted him in a ravine. >> he couldn't get -- i had to pick him up and carry him into the helicopter and put him in the back seat. he couldn't stand or walk on his own at all. >> our story ended well. but, it didn't -- it could have gone the other way. >> yes, it could have.

rosenthal's wife said he had written out funeral instructions on his hat, instructions that now, thankfully, will not be needed. straight ahead, your friday morning weather and in sports a smash down the line and the guy with the baby makes the catch. when i had my heart attack, i couldn't believe it. it was a real shock. i remember being at the hospital thinking, "i should have done more to take care of myself." you should've. that's why i'm exercising more now. eating healthier. and i also trust my heart to lipitor. [ male announcer ] when diet and exercise are not enough, adding lipitor may help. lipitor is a cholesterol-lowering medication that is fda approved to reduce the risk of heart attack and stroke in patients who have heart disease or risk factors for heart disease. lipitor is backed by over 18 years of research. lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant, or may become pregnant.

you need simple blood tests to check for liver problems. tell your doctor if you are taking other medications, or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. dean will never forget what he went through. don't take your health for granted. [ male announcer ] have a heart to heart with your doctor about your risk. and about lipitor. here's a look at weather in some cities around the country. new york, heavy rain, 72.

miami, sunny, 90 degrees. chicago, partly cloudy, 73. denver, sunny, 85 and l.a. partly cloudy, 91. time now for a check of the national forecast. the latest satellite picture shows a large area of clouds over the northeast that stretches down toward the bahamas. back behind it are clear skies that go all the way to the west coast. and there are a few fair-weather patches in the northern plains and southwest. later today, strong winds and heavy rains will move into the northeast. the southeast attempts to dry out from all the rainfall yesterday. warm weather in the southwest is still holding. and milder temperatures are drifting further into the southern plains. in sports, the giants are so close to the national league west title they can smell it. in san francisco, pablo sandoval in the barry bonds role knocking a homer over the right field stands into mccovey cove. the d'backs tied it up but in the sixth buster posey hit a two-run homer and the giants went on to win 4-1. the best play of the game in the

eighth inning a one-handed grab out of a foul ball down the right field line by a guy. you'll see it right here, holding a baby with a panda hat on. my goodness, he hung on to the ball and the baby, thankfully. in other sports news, down the coast in san diego, the cubs' brad snyder hit an rbi single in the ninth and padres lost, 1-0, leaving them three games in the n.l. west and headed for san francisco to close out the season. finally, the american league east is all tied up and kansas city the tampa bay rays fell to the royals 3-2. dropping the rays into a tie with the yankees. both teams are playoff bound but the division winner gets home field advantage. when we return another look at this morning's top stories and california republican gubernatorial candidate meg whitman answering new charges in a housekeeper controversy. to get a flu shot --e it y

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on the on the "cbs morning news" a look at today's weather. rain is continuing to fall across the mid-atlantic and northeast. the rains will be moving into the new england area later today. milder weather stretches into the southern plains and the heat lingers in the southwest. here's another look at this morning's top stories, a massive rain-producing storm is battering the atlantic coast this morning. there is flooding and power loss. so far, north carolina has gotten the worst of it. at least five people were killed there. president obama is expected to announce today his chief of staff rahm emanuel is leaving the administration to run for mayor of chicago. president obama was hoping to reignite enthusiasm among his young voters at a rally in washington last night. the president denied talk of an enthusiasm gap and told supporters now is not the time to quit. >> now is not the time to lose

heart. that involvement can't end in 2008. that election was not just about putting me in the white house. it was about building a movement for change that went beyond one campaign or any one candidate. >> also at the rally, hip-hop artist b.o.b. performed at the sold-out event. the governor's race in california a controversy involving an undocumented housekeeper just will not go away. kenneth gibson reports. >> reporter: a housekeeper is dragging the governor's race in california into the mud. she once worked for former ebay ceo meg whitman now on the gop ticket, who is dismissing accusations she knowingly hired the illegal immigrant and kept her for nine years. >> these allegations are completely untrue. they lack any merit whatsoever. this is truly a political smear. >> reporter: whitman claims she hired nicky diaz santa lean only after getting proper documents

and fired her last year when she revealed she was in the country illegally. >> when she confessed to us she falsified her hiring documents and records way back in 2000, we were surprised and shocked. >> now comes the smoking gun. >> reporter: moments after whitman spoke she held a news conference with her toern, gloria allred, who presented a 2003 letter from the federal government notifying the whitmans that she might be an illegal immigrant. according to her, her husband told the housekeeper to deal with it. >> we conclude that they didn't return the 2003 letter because they wanted to continue to employ an undocumented worker. and she was easier to exploit than a documented one. >> reporter: allred has strong ties to the democratic party and once donated money to whitman's opponent, jerry brown, in his quest for his old office, attorney general brown is embracing the controversy calling the maid's story

credible. whitman insists he's behind the story. there's a month to go before election day. kenneth gibson, cbs news los angeles. today on "the early show" my exclusive interview with willie nelson as he heads to farm-aid for the 25th year. i'm betty nguyen. of the shrimpers and fishermen, hotel or restaurant workers who lost their jobs to the spill. i'm iris cross. bp has taken full responsibility for the clean up in the gulf and that includes keeping you informed. our job is to listen and find ways to help. that means working with communities. restoring the jobs, tourist beaches, and businesses impacted by the spill. we've paid over $400 million in claims and set up a $20 billion independently-run claims fund to cover lost income until people impacted can get back to work. and our efforts aren't coming at tax-payer expense. i know people are wondering--

now that the well is capped, is bp gonna meet its commitments? i was born in new orleans. my family still lives here. i'm gonna be here until we make this right.

well, i have nothing but good news this morning. we'll look at first warning doppler weather radar. we'll put it in motion. what you'll see is the end of the rain getting out of here. the sunshine returning today. temperatures in the low 70s. in the news, heavy rains. they could be to blame for a sinkhole. find out the street that's shutdown and complete first warning weather coverage of what's gone by and put your phone down. drivers can only talk on the phone with a hands free device. and the parents of a virginia girl found dead in the

city blame the police department for a botched investigation. more news and first warning weather and the first traffic report of the morning and week's end in a few minutes. ,,,

it's friday. >> it's a tgnir friday. >> that means thank god it's not raining friday. well, it will